Digital Implementation of SAP Order Confirmations

Published April 11, 2022
Estimated reading time 4 min

Laura Funke d.velop

An important part of the purchase-to-pay process in SAP is the order confirmation. Due to its legally binding nature between buyer and seller, the order confirmation document is a critical element. In addition, the order confirmation is important for reliable planning of production and provides valuable information to the customer. Checking and maintaining the dates and quantities of these documents can be time consuming and opens the door to potential errors. A digital solution can alleviate both of those risks.. Learn how order confirmations can be processed digitally, effectively and transparently in SAP.

Definition of Order Confirmation

The order confirmation is an important part of the procurement process between buyer and seller, because it specifies the sales conditions as well as quantities and prices that were agreed upon. The order confirmation creates a binding record between buyer and seller declaring the general conditions of the sales contract.

Check SAP order confirmations: The right quantities, the right prices at the appropriate delivery date?

Checking order confirmations requires a great deal of attention, because the information listed, such as quantity, delivery date or prices, must be checked in detail in a timely manner. As a legally binding document, mistakes should be avoided during reviews of order confirmations. Companies often receive a large volume of order confirmations at one time. This creates a sense of urgency to complete the reviews as error-free as possible, because it involves important delivery conditions as well as quantities and prices, which are the basis for planning and invoicing.. Steps in this process that need to be checked and documented include:

  • Is it an order confirmation or merely an acknowledgement of receipt?
  • Do the respective quantities match the order?
  • Does the order confirmation reflect the previously negotiated prices?
  • Are the negotiated delivery conditions correct?
  • Does the stated delivery date fit?

Potential Roadblocks & Risks When Checking SAP Order Confirmations

In any industry you are in , large volume orders are not uncommon. Moreover, these orders often involve products or individual parts with many different characteristics.he verification of order confirmations requires special attention and concentration. Especially when multiple employees are responsible for checking the order confirmation and ordering the goods This can be challenging and mistakes can happen very quickly. Optimizing the entire process requires a digital solution that automates these essential review steps.

Order Confirmation in SAP

Processing Order Confirmations in SAP

The processing of order confirmations is part of the purchase-to-pay process in SAP. The procurement of order confirmations involves reading out the documents, which are received in various formats, such as paper form or electronically by email. During the automatic readout at the beginning of the process, the document is archived in an audit-proof and GoBD-compliant manner. First, the digitally captured order confirmations are read out and classified using OCR software. Then, the read-out data is automatically compared with the associated items of the order in the Order Confirmation Cockpit in SAP to identify possible discrepancies. With the AI-based review, the workflow in SAP begins. Via the associated dashboard of the order confirmations, the current processing status as well as the processor(s):can be seen in the respective order confirmation at any time. All relevant information is transparently displayed there and discrepancies can be clarified. If all values of the order confirmation match the order or are within the selected tolerance, the release and data transfer to the order can be done automatically. In the event of discrepancies, a checking and release workflow is run through in advance.

A guide to automated procure-to-pay processes in SAP

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Highlights of d.velop’s Digital Processing of SAP Order Confirmations

  • Automated processing of incoming order confirmations
  • Automatic purchase order reviews (quantities, prices, delivery dates, etc.)
  • Workflow-supported checking and release process
  • Complete control over all processes at any time
  • Seamless integration into SAP
  • Useful support module for preliminary and subsequent processes
dashboard view SAP order confirmation

Advantages of Digital Processing of SAP Order Confirmations at a Glance:

  • Reduce operating costs
  • Complete transparency in all process steps
  • Planning reliability thanks to up-to-date data
  • Printing and printer maintenance costs are reduced
  • Free up time with the elimination of routine tasks
  • Audit-proof and GoBD-compliant archiving
  • E-mail notifications for colleagues without SAP access
  • Workflow control and customizing

Together with SAP purchase requisition, SAP goods receipt, and SAP invoice verification, order confirmations in SAP complement the purchase-to-pay process and enable transparent and digital processing of the procurement processes.