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SAP Sales and Distribution Module

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					Sales and Distribution (SD)
        Overview
                           SD                FI
                       Sales &             Financial
                     Distribution         Accounting
                   MM                                 CO
               Materials                          Controlling
                Mgmt.
          PP                                                    AM

                                    R/3
      Production                                         Fixed Assets
       Planning                                             Mgmt.
 SM                                                                     EC
Service                                                              Enterprise
Manage-                                                              Controlling
 ment     QM           Integrated Solution                      PS
      Quality
    Management            Client / Server                  Project
                                                           System
               PM                                     WF
        Plant Maintenance Open Systems            Workflow
                           HR                IS
                      Human               Industry
                     Resources            Solutions
                     SD
• Mechanisms to execute the business
  processes used in the selling, shipping
  and billing of products and services

• Tightly coupled data flow to the other SAP
  modules — Integration

• Flexible and robust functionality that is
  tailored through configuration
           SD Components

          Master                      Foreign
           Data                        Trade
                                                 Sales
 Sales
                         Sales                   Info
Support
                                                System
          Shipping                    Billing

                     Transportation
  SD Overview — Master Data
• Detailed information about customers,
  materials and business partners
• Flexible data structures that support the
  business environment
• Specialized master data to support sales
  order processing
 SD Overview — Sales Support
• Provides the functionality to support the staff
  involved in business development and customer
  service processes
• Primary functions
   – Sales Prospects
   – Contact Persons
   – Competitors and Competitive Products
   – Sales Activities
   – Direct Marketing
          SD Overview — Sales
• Primary base for          • Sampling of functions
    customer order             – Inquiries & Quotes
    management                 – Sales Orders
                               – Returns
•   Highly customizable        – Contracts & Scheduling
•   Sophisticated pricing        Agreements
                               – Consignment
•   Integrated ATP
                               – Rush Orders & Cash Sales
•   Integrated credit          – Back Orders & Subsequent
    management                   Deliveries
                               – Credit & Debit Memo
                                 Requests
    SD Overview — Shipping
• Main functions
  – Picking, Packing & Inventory management
  – Generate Shipping Documents
• Transportation Management
  – Routes
  – Transportation Scheduling
• Delivery Scheduling, Returns Deliveries &
 Stock Transfer
        SD Overview — Billing
• Invoice Generation — automatic or
    manual
•   Comprehensive set of billing functions
•   Linked documents — e.g. invoice & credit
    memo
•   Real-time integration with finance (FI)
•   Fully integrated and comprehensive
    pricing
       SD Overview — S I S
• Flexible tool that allows one to collect,
  consolidate, and utilize data from sales
  and distribution processing
• A component of the Logistic Information
  System (LIS)
Transportation


Foreign Trade
Sales & Distribution

    - Process Flow -
     Supply Chain Process



 Customer Order        Picking          Goods Issue




Final Payment     Accounts Receivable      Billing
           SAP Process Steps

 Sales                     Sales
              Quotation
                           Order


Shipping      Delivery              Post Goods
                          Picking
               Note                    Issue


Billing        Billing


             Post
   FI
             Incoming
  A/R
             Payment
    Sales — Inquiry & Quotation
•   Support pre-sales processes
•   Are time sensitive
•   Automatic availability check
•   Automatic pricing
•   No impact to FI
•   Can be used as reference documents
        Sales — Sales Order
• Core of customer     • Automated standard
  order management       functions ...
                         –   availability check
• No impact to G/L
                         –   MRP updating
• Can reference          –   pricing
  existing documents     –   credit check
• Copies key             –   delivery scheduling
  information from       –   export control
  master data            –   shipping & route
                             determination
    Shipping — Delivery Note
• Initiates the shipping process
• Control document for shipping processes
  — maintains status of each processing
  step
• Re-confirms: availability, credit, foreign
  trade, delivery scheduling
• Facilitates transportation planning
 Shipping — Picking & Packing
• Picking: Physical activity of moving goods
  from the warehouse for further processing
  (packing, loading)
• Packing: Determines packing materials
  and packing details
• Advanced processing includes, e.g. batch
  mgmt., serial number control
 Shipping — Post Goods Issue
• Completes the shipping process
• Typically performed when customer takes
  ownership
• Updates inventory
• Updates G/L accounts
  – Cost of goods sold
  – Inventory
                   Billing
• Generate customer invoice
• Updates FI
  – Customer account
  – G/L accounts: revenue, discount, etc.
• Applies relevant pricing
• Updates customer credit
Sales & Distribution

- Organizational Structures -
                   Sales Organization
                                                                Client
                                                                 860


                                                         Pastime Corporation
                                                           Company Code
                                                               CC00


                        Domestic Sales                                    Europe               Asia Pacific
                       Sales Organization                            Sales Organization     Sales Organization
                             So00                                          EURO                   APAC


        Direct               Wholesale                Retail               Wholesale              Wholesale
Distribution Channel   Distribution Channel   Distribution Channel   Distribution Channel   Distribution Channel
           DI                    WH                     RE                     WH                     WH


Baseball    Softball   Baseball    Softball   Baseball   Softball    Baseball    Cricket          Baseball
Division    Division   Division    Division   Division   Division    Division    Division         Division
  BB          SB         BB          SB         BB         SB          BB          SB               BB
         Sales Organization
• Sells and distributes products, negotiates
  terms of sales and is responsible for these
  business transactions
• Critical organization element to the
  definition of business markets
• A business transaction is linked to one
  Sales Organization
        Distribution Channel
• Identifies how products and services reach
  the customer
• Can be assigned to one or more Sales
  Organizations
                 Division
• Often times used to define product line
  distribution
• Organization level to which customer
  specific information and requirements are
  maintained — e.g. pricing, partial delivery
• Assigned to one or more Sales
  Organizations
               Sales Area
• Organizational element comprised of:
  – Sales Organization
  – Distribution Channel
  – Division
• Will be used to link together the
  organizational aspects of sales to
  customers
• Used for statistical analysis
                         Sales Area

                            Domestic Sales
                           Sales Organization
                                 SO00

        Direct                 Wholesale                  Retail
 Distribution Channel     Distribution Channel     Distribution Channel
          DI                      WH                        RE

Baseball      Softball   Baseball      Softball   Baseball      Softball
Division      Division   Division      Division   Division      Division
  BB            SB         BB            SB         BB            SB
                         Sales Area

                            Domestic Sales
                           Sales Organization
                                 SO00

        Direct                 Wholesale                  Retail
 Distribution Channel     Distribution Channel     Distribution Channel
          DI                      WH                        RE

Baseball      Softball   Baseball      Softball   Baseball      Softball
Division      Division   Division      Division   Division      Division
  BB            SB         BB            SB         BB            SB
              Sales Office
• Typically defines a territory or market area
• Linked to one or more Sales Areas
• Optional organization structure
Internal Sales Organization

                Domestic
                Sales Area

         Western         Eastern
        Sales Office   Sales Office
               Sales Group
• Sales Group
  – Sub-division of a sales office, territory or
    market
              Sales Person
• Sales Person
  – Defined in HR — Personnel Admin.
  – Specifically defines an individual rather than a
    position (sales rep.) in sales processing
   Internal Sales Organization

                                 Domestic
                                Sales Area


                  Western                                 Eastern
                 Sales Office                            Sales Office


          Southwest              Northwest     Southeast           Northeast
         Sales Group            Sales Group   Sales Group         Sales Group


Sales                  Sales      Sales         Sales                   Sales
Person                 Person     Person        Person                  Person
Shipping Point & Loading Point
• Shipping Point
  – Location that performs all delivery related
    activities
  – Assigned a factory calendar
  – A delivery can be processed from only one
    shipping point
• Loading Point
  – A subdivision of the shipping point used for
    more specialized handling
 Shipping Organization
                    Sioux Falls
                      PLANT
                       PT00


     Freight Dock          Express        Export
     Shipping Pt          Shipping Pt   Shipping Pt
         SP00                QUIK         EXPT


 Dock #1      Dock #2      Dock #3       Dock #2
Loading Pt   Loading Pt   Loading Pt    Loading Pt
   D1           D2           EX            XP
Sales & Distribution

   - Master Data -
SD Master Data - Core Elements



            r
         me


                         M
                          ate
        st o
                Master



                             ria
      Cu




                                l
                Data

                Pricing
   Material Master — Sales: sales org. 1
-General Data
                                     Basic Data 1 - 2
         Basic Unit of Measure         Classification

         Division                 Sales: sales org. 1 - 2

                                            Sales: general/plant
         Material Group
                                               Purchasing
         Sales Unit                              Foreign Trade: Import Data

                                                   Sales: text
         Delivering Plant
                                                        Purchase order: text
         Cash discount                                    MRP 1 - 4

-Tax data                                                   Forecasting

                                                              Storage 1 - 2
         Country
                                                                 Warehouse Management 1 - 2
         Tax category                                              Quality Management

         Tax classification                                           Accounting 1 - 2

                                                                        Costing 1 - 2
-Quantity stipulations
         Min. order quantity
         Min. delivery quantity
         Delivery unit
             Material Master — General Data

Base Unit of Measure   The Base Unit of Measure is the unit of measure in
                       which stocks are managed within your company.
Division               You may enter the Division which your product is in
                       for sales (defaults if entered in the Basic data screen).
Material Group         A (freely definable) key that’s used to group several
                       materials or services for analysis/reporting as well as
                       search by match code.
Sales Unit             This is the unit of measure in which the material is
                       sold, if different from the base unit of measure.
Delivering Plant       Plant, from which the material is available for sale.
                       This is a default value only.
Cash discount          Indicator used for materials, which allow for a cash
                       discount.
             Material Master — Tax data &
                 Quantity stipulations
Tax data
Country                  Country
Tax category             Taxes, applicable to this material (e.g. Federal, State
                         taxes in US, VAT in GB)
Tax classification       taxable, exempt


Quantity stipulations
Min. order quantity      Min. quantity a customer can order (in base unit of
                         measure).
Min. delivery quantity   Min. delivery quantity to a customer.
Delivery unit            Only multiples of this number will be delivered to the
                         customer.
   Material Master — Sales: sales org.
                                    Basic Data 1 - 2

                                      Classification

                                 Sales: sales org. 1 - 2

-Grouping terms                            Sales: general/plant

                                              Purchasing

                                                Foreign Trade: Import Data
         Matl statistics group
                                                  Sales: text
         Material pricing grp                          Purchase order: text
         Volume rebate group                             MRP 1 - 4

         Acct assignment grp                               Forecasting

                                                             Storage 1 - 2
         Commission group
                                                                Warehouse Management 1 - 2
         Item Category group
                                                                  Quality Management

                                                                     Accounting 1 - 2

                                                                       Costing 1 - 2
   Material Master — Grouping terms

Matl statistics group         Helps to determine which data the system updates in the
                              Logistics Information System (LIS).
Material pricing grp          A way to group materials with similar pricing conditions.
Volume rebate group           A material can be assigned to a volume rebate group (e.g.
                              Low Rebate, High Rebate) if the material qualifies for rebate.
Acct assignment grp           A grouping of materials with the same accounting
                              requirements (used to determine revenue and sales deduction
                              accounts)
Commission group              Several materials can be assigned to the same commission
                              group, if the commission sharing between representatives is
                              the same for these materials (e.g. Rep.A: 6%, Rep.B: 10%,
                              Rep C: 12%).
Item Category groupA grouping of materials, that helps the system determine the
                   Item Category. Item Category determines how a specific item
                   is processed by system. E.g. a text item is not relevant for
                   pricing.
    Material Master — Sales: general/plant
                                     Basic Data 1 - 2

                                       Classification
General data                              Sales: sales org. 1 - 2
          Base unit              Sales: general/plant

          Gross weight                        Purchasing

                                                 Foreign Trade: Import Data
          Net weight
                                                   Sales text
          Avail. Check
                                                        Purchase order: text
Shipping data (times in days)                             MRP 1 - 4
          Trans. Grp                                        Forecasting

          LoadingGrp                                          Storage 1 - 2

                                                                Warehouse Management 1 - 2
Packaging material data
                                                                    Quality Management
          Matl grp ship. matls
                                                                      Accounting 1 - 2
General plant parameters                                                Costing 1 - 2

          Negative stock
Material Master — General data & Shipping
           data (times in days)
  General data
  Base unit            The Base Unit of Measure is the unit of measure in which
                       stocks are managed within your company.
  Gross weight         In Base Units of Measure.
  Net weight           In Base Units of Measure.
  Avail. Check         Tells the system when to do an availability check, as well as
                       which MRP elements (such as purchase orders,
                       reservations) to include in the check.
  Shipping data (times in days)
  Trans. Grp           Transportation groups are groups of materials that have
                       the same transportation requirements. For example, all
                       goods that need refrigeration.
  Loading Grp          Loading groups define materials that have the same loading
                       requirements, such as forklift truck, or crane.
Material Master — Packaging material data &
          General plant parameters

 Packaging material data
 Matl grp ship. matls, or
 Material group shipping materials   Freely definable group name, which is used to
                                     indicate groups of materials with similar
                                     shipping materials, such as liquids or bulk, for
                                     example.
 General plant parameters
 Negative stock                      Check mark indicator, which specifies whether
                                     negative stock is allowed at that plant.
         Material Master — Sales texts
                               Basic Data 1 - 2

                                 Classification

                                   Sales: sales org. 1 - 2

                                     Sales: general/plant
- Sales texts   Text                    Purchasing
                specific to               Foreign Trade: Import Data

                the material        Sales text

                                                  Purchase order: text
                and in an
                                                    MRP 1 - 4
                appropriate
                                                      Forecasting
                language.                               Storage 1 - 2

                                                          Warehouse Management 1 - 2

                                                             Quality Management

                                                                Accounting 1 - 2

                                                                  Costing 1 - 2
          Account Groups

• Account group determines which fields
  are to be used in defining customer
  master data
               Field Status
Field status controls the use of each field
  within the customer master determining
  whether a field is required, optional,
  suppressed or display only
Field status controls are also relevant to a
  specific activity — create, change, or
  display
Sales & Distribution

  - Customer Master -
          Customer Master

                 General
                  Data


Sales & Distribution   Com pany Code
       Data                 Data
          Customer Master
• Centralized data for both SD & FI
• Segmented into three sections
  – General data - address & communication
  – Company code data (FI) - banking and
    payment information related to FI
  – Sales data (SD) - pricing, delivery, output
• The sales data is specific to one sales
  area and is therefore dependent on the
  sales organization
Customer Master by Sales Area

       Customer
       • Sales Organization
       • Distribution Channel
       • Division
Customer Master — Address &
                   Communication

  General Data — Address
                           Customer Name

                           Search Term

                           Street address, City,

                           Postal code, Country

                           Language

           General Data — Communication
                           Telephone, Fax, Data numbers
    Customer Master — Control Data

General data — Control data

             Account control :    Vendor, Authorization
                                  Trading partner, Group key

             Tax information :    Tax codes, Fiscal address
                                  Country code, City code
                                  VAT N, Tax jurisdiction code
                                  Equalization tax, Sole proprietor
                                  Tax on sls/pur.
             Reference data
                       / area :   International Locator No.

             Industry:            Transport Zone
                                  Express station
                                  Train station
                                  Location code
 Customer Master — Marketing
General Data — Marketing


             Classification :   Nielsen ID
                                Customer classification
                                Industry
                                Industry codes

             Operating figures : Annual sales
                                 Number of employees
                                 Fiscal year variant

             Sales prospecting : Legal status
Customer Master — Payment
                   Transactions
   General Data —
   Payment Transactions


                 Bank details   Country
                                Bank Key
                                Account holder
                                Bank Account
                                Control Key
                                Collection
  Customer Master — Unloading Point
General Data —
          Unloading points



                      Unloading point

                      Customer factory calendar

                      Default Unloading Point

                      Goods receiving hours
  Customer Master — Foreign Trade
General Data —
              Foreign trade



                Country key for export control of customer

                Table of Denial Orders list (TDO)

                Special Designated Nationals list (SDN)

                Diversion High Risk Profile list (DHRP)

                Usage and Classification
Customer Master — Contact Persons
General Data —
           Contact persons


                    Name

                    Telephone number

                    Department

                    First name

                    Form of address (e.g. Mr., Ms.)

                    Function
   Customer Master — Accounting
Company Code Data     Information
Accounting Information


          Accounting info        Reconciliation Account
                                 Sort key
                                 Head office

          Interest calculation   Interest indicator
                                 Interest calculation frequency
                                 Last key date

          Reference data         Buying group
   Customer Master — Payment
Company Code Data      Transactions
Payment Transactions



            Payment data: Payment terms
                          Tolerance group

            Automatic
            Payment
            Transactions: Payment methods
                          Alternative payer
                          Lockbox
Customer Master — Correspondence
Company Code Data
  Correspondence


           Dunning data :     Dunning procedure
                              Dunning recipient

           Correspondence :   Account number
                              at customer
                              Customer user

           Payment
           notices to :       Customer
                              Sales
                              Accounting
                              Legal
    Customer Master — Insurance
Company Code Data
         Insurance



                Export credit
                insurance : Policy number
                              Institution number
                              Amount insured
                              Valid until
                              Lead months
                              Deductible
         Customer Master — Sales
Sales Data — Sales area


             Sales order : Sales district
                           Sales office
                           Sales group
                           Order probability
                           Item proposal
                           Account at customer

             Pricing /
             Statistics:   Price group
                           Customer pricing procedure
                           Price list type
                           Customer statistical group
     Customer Master — Shipping
S & D Data — Shipping



              Shipping :       Delivery priority
                               Shipping conditions
                               Delivering plant
                               Order combination
                               Batch split allowed

              Partial Delivery: Complete delivery
                                Partial delivery of item
                                Maximum part deliveries
       Customer Master — Billing
S&D Data — Billing



            Billing section : Manual invoice maint.
                              Rebate
                              Pricing
                              Billing schedule
                              Invoice list schedule
            Delivery and
            payment terms : Incoterms
                            Payment terms
            Accounting :    Account assignment group

            Taxes:           Tax requirements for the customer
Customer Master — Partner Functions
S&D Data —
      Partner functions



              The different partners are assigned

                 •   SP      Sold-to-party
                 •   BP      Bill-to-party
                 •   PY      Payer
                 •   SH      Ship-to-party
                 •   …       additional Partner function(s)
Assigning Additional Partners

— Siesta Baseball League - Vera Cruz, NM —
Sold-to : 10018             Sold-to
Bill-to : 10018
Payer : 10018 Bill-to        Payer     Ship-to
Ship-to : 10018
— Siesta Baseball League - Vera Cruz, NM —
Sold-to : 10018
Bill-to : 10018               Sold-to
Payer : 10018
Ship-to : 10018 Bill-to        Payer   Ship-to   Ship-to
Ship-to : 10249 - Bakersfield, CA
Sales & Distribution

 - Business Partners -
        Business Partners
• Defines all of the parties involved in a
  business transaction and differentiates
  between their roles — customer, carrier,
  employees, customer contact, etc.
• Through customizing the system
  automatically assigns partners to the
  customer master and to transactions


   Sold-to   Ship-to    Bill-to   Payer
          Business Partners
• The system creates these four business
  partners by default. All four are required.

• All four may be the same or may be different.

• Since these are automatically assigned
  partners you may need to add additional
  partners to carry out your business
  transactions.

    Sold-to     Ship-to      Bill-to     Payer
 Business partners — Sold-to
• Customer that
  orders the goods
• Can perform all           Sold-to
  primary partner              Ship-to
  functions — sold-to,
  ship-to, payer, bill-to             Bill-to
• Primary type of                         Payer
  business partner
• Cannot be linked to
  other sold-to
  partners
  Business partners — Ship-to
• Party that receives
  the goods
                          Sold-to
• Can be created as an
  independent partner        Ship-to
  and linked to one or
                                    Bill-to
  more sold-to partners
                                        Payer
   Business partners — Bill-to
• Party that receives
  the invoice
                          Sold-to
• Can be created as an
  independent partner        Ship-to
  and linked to one or
                                    Bill-to
  more sold-to partners
                                        Payer
   Business partners — Payer
• Party that sends the
  payment
                          Sold-to
• Can be created as an
  independent partner        Ship-to
  and linked to one or
                                    Bill-to
  more sold-to partners
                                        Payer
Business Partners — Example

           Sold-to             Sold-to


 Ship-to             Bill-to             Ship-to


 Ship-to             Payer               Ship-to


 Ship-to                                 Ship-to
Sales & Distribution

     - Pricing -
                   Pricing
•   “World-class” functionality
•   Highly customizable & extendible
•   One of the most complex features of SAP
•   Used to determine the net price for a
    material or an order
            Pricing Process
• Standard pricing calculates the gross
  price, then applies discounts,
  surcharges and applicable taxes to
  arrive at the final price
 final price = gross price - discounts + surcharges +
 taxes


• Cost-plus pricing determines the base
  cost and applies the appropriate
  discounts, surcharges and taxes
 final price = cost - discounts + surcharges + taxes
         Pricing Components
• Pricing is based on a matrix of predefined
  and custom elements
• Delivered element groups (a.k.a.
  conditions)
  – Prices
  – Discounts & Surcharges
  – Freight
  – Taxes
         Pricing Procedure

• In short, the mechanism used to arrive
  at the final price
• Considers all of the applicable pricing
  conditions, e.g. material price, customer
  discount
• Is assigned by: sales area, sold-to party
  and sales document type (e.g. sales
  order)
             Pricing Procedure
• The pricing procedure uses what SAP calls
  “the condition technique”.
• The pricing condition technique starts with
  the:
  –   Pricing Procedure which looks at
  –   Conditions which use
  –   Access Sequences which accesses
  –   Condition tables which point to
  –   A price, discount or other condition ($)
                                    R/3 Pricing Process
SALES DOC.                              DETERMINE ACCESS
             DETERMINE PRICING                                 ACCESS THE CONDITION       PRICE THE
   ITEM                                SEQUENCE FOR EVERY
                PROCEDURE                                          RECORDS AND              ITEM
                                         CONDITION TYPE IN
                 FOR ITEM                                        DETERMINE PRICE
                                        PRICING PROCEDURE


                                       CONDITION TYPE AND                                    ---
                   SALES AREA &                                 CUSTOMER/MAT’L OR
                                        ACCESS SEQUENCE
 UNIFORM         DOCUMENT TYPE &
                                          ARE LINKED IN
                                                                PRICE LIST/MAT’L OR         $9.25
                     SOLD-TO                                        MATERIAL                 N/A
                                             TABLE



                                        CONDITION    ACCESS                     STOPS LOOKING AFTER
SALES DOC. SOLD PRICING                   TYPE      SEQUENCE                     FINDING FIRST VALUE
AREA TYPE TO PROCEDURE        KEY          PR00       PR00
 US01    A   1       USSTD                 KI00       KI00
 US01    B   1       USALT                 TX00       TX00                   LOOK FOR CONDITION
                                                                ACCESS  OR
                                           FR00       FR00                  RECORDS IN THIS ORDER
 UK01    A   1       UKSTD                                     SEQUENCE DER
                                                                             OF CONDITION TABLES
 UK02    A   1       UKSTD                                        PR00    01   CUSTOMER/MATERIAL
                               PRICING CONDITION
                                                 CONDITION
                             PROCEDURE   TYPE                             02   PRICE LIST TYPE/MAT’L
                               USSTD        PR00      PRICE               03          MATERIAL
                                            KI00    DISCOUNT      KI00    01   CUSTOMER/MATERIAL
                                            TX00     TAXES                02   PRICE LIST TYPE/MAT’L
    PRICE ELEMENT                           FR00     FREIGHT              03          MATERIAL
 CONTROL PARAMETERS
  UPPER/LOWER LIMITS           USALT        PR00      PRICE
                                                                  ETC.                       ETC.
                                            KI01    DISCOUNT
             Price Agreements

• Simple price              • Detailed price
  agreements                  agreements
  –   product                 – pricing scales
  –   customer                – rebates
  –   customer & material     – customer expected
  –   customer group &          price
      material
        Specialized Master Data

• Customer Material Info. Record
• Item Proposal
• Listing & Exclusion
• Product Substitution
Customer/Material Info. Record
• Defines a customer alias for a material
  & description, for example:
     Material # : Glove   Customer # : Pastime Glove
• Can further define attributes of the
  material, shipping and partial delivery
  information specific to the product and
  customer
• Referenced in the sales order using the
  Ordering Party overview
               Item Proposal
• Used to define frequently ordered combinations
  or special assortments of products and
  quantities
• Either products or products with quantities can
  be selected during order entry
• An item proposal can be defined for a customer
  via the customer master record
   Material Listing & Exclusion
• Used to control what products are
  available for a customer or group
• Material Listing — defines products that
  can be sold to a customer
• Material Exclusion — defines products that
  cannot be sold to a customer
       Product Substitution
       Material Determination
• Enables automatic or manual substitution
  of materials during sales order processing
• Examples:
  – substitute a standard product with a
    promotional material
  – substitute based on a customer preference
  – substitute based on selection list (manual)
 Customizing For Transactions
      Shipping Functions
• Shipping Point Determination
  – The shipping point is determined for each line
    item based on the shipping point
    determination

  – shipping point = shipping condition +
                    loading group +
                    delivering plant
   Customizing For Transactions
        Shipping Functions
• Route Definition
  – Route to be traveled and the transit time
  – Generic routes can be used to simply define
    transit time
• Route Determination
  Proposed route = shipping point +
                 destination country +
                 transportation zone +
                 shipping condition
Sales & Distribution

   - Transactions -
  Business Document Types

 Inquiry                     Returns

              Quotation                   Contract

Sales Order                Consignment
                                         Scheduling
               Cash Sale
                                         Agreement
                           Returnable
Rush Order
                           Packaging
              Debit Memo                 Credit Memo
    Order Processing Functionality

•   Delivery scheduling
•   Availability check
•   Transfer of requirements to MRP
•   Pricing
•   Credit check
•   Shipping point & route determination
•   Foreign trade & license processing
•   Document flow
        Delivery Scheduling
• Automatic scheduling of essential shipping
  activities ...
  Calculated using defined activity times ...
  Resulting in scheduled activity dates

• Determined using backward and forward
  scheduling rules
        Delivery Scheduling
• Structure of sales documents

     Header
          Line item # 1
              Schedule line # 1
              Schedule line # 2
          Line Item # 2
              Schedule line # 1
Delivery Scheduling — Terminology
 • Transportation lead time — time required
   to schedule transportation
 • Pick/Pack time — time required for picking
   and packing
 • Load time — time required to load
 • Transit time — time required to transport
   goods from shipping point to ship-to
            Backward Scheduling

 25
Order     Material      Transp.    Loading          Goods       Requested
Date     Availability   Sched.                      Issue       Delv. Date
  25th       26th         27th         28th             29th       31st
                             Transp           Loading       Transit
                                .              Time          Time
                             Sched.           (1 day)       (2 days)
                              Time
                             (1 day)
                    Pick & Pack
                       Time
                        (2 days)
                Forward Scheduling

                27
 Material      Order   Transp.                       Goods        Requested
Availability   Date    Sched.        Loading         Issue        Delv. Date
 26th          27th      27th          28th            29th          31st
                             Transp.          Loading         Transit
                             Sched.            Time            Time        1
                              Time             (1 day)        (2 days)
                                 (1 day)                                   New
                                                                         Delv. Date
                             Pick & Pack
                                Time
                                   (2 days)
            Availability Check
• Determines the material availability date
• Considers inward and outward movement of
  inventory — customizable
• Influences partial deliveries by
  – proposing a quantity that can be delivered on the
    requested date (complete delivery)
  – determines the earliest date for full delivery
  – determines the number and dates for partial deliveries
    to fulfill the order
          Availability Check
• In determining the material availability date
  the system can include specific stocks if
  selected, such as:
  – Safety stock
  – Stock in transfer
  – Quality inspection stock
  – Blocked stock
  – Restricted use stock
Transfer of Requirements to MRP
• Ordered quantities are passed to MRP
  (MM)
• Controlled by the schedule line category
• Blocking of documents can affect
  requirements passing — delivery block
              Credit Check
• Efficient means to implement credit
  management
• Integrated with FI — via credit control area
• Automatically alerts when a credit check
  fails
• Comprehensive credit management
  reporting
Shipping Point & Route Determination
  • A shipping point is determined for each line
    item — shipping point determination
  • A delivery can only be processed from one
    shipping point
  • Routes - route to be traveled & transit time
    are determined using customized rules
  • Routes can be used to simply define transit
    time
Foreign Trade & License Processing
• Predefined trade areas — NAFTA, EU
• Automated reporting for trade areas
• Automated controls
  – license management
  – embargo lists
  – control by customer, country, product, point in
    time
Shipping
         Shipping Overview
• Comprehensive functionality to support
  picking, packing and loading functions
• Work list and deadline monitoring
• Functions with backorder processing
• Tightly coupled to the MM and FI modules
• Facility for transportation management
         Shipping Overview

    Order        Order        Order
    Order
                Delivery
    Order
                Delivery     Delivery
   Delivery
                Delivery
  Order         Partial    Complete
Combination    Delivery    Delivery
          Shipping Overview
• Delivery creation activities
  – checks order and materials to determine if a
    delivery is possible — delivery block,
    incompleteness
  – confirms availability
  – confirms export/foreign trade requirements
  – determines total weight & volume
          Shipping Overview
• Delivery creation activities
  – generates packing proposal
  – considers partial deliveries
  – updates route assignment
  – assigns picking location
  – determines batches
  – updates sales order — status, delivery qty
     Deliveries & Delivery Notes
• The Delivery Note
   – Initiates the delivery process
   – Control mechanism for the process
   – Changes to delivery are allowable - products, quantities



                                                  Picking

         Delivery                                 Packing
          Note                    Status
                                                 Loading
                                                Post Goods
                                                   Issue
           Delivery Due List

•   Produces a work-list of deliveries
•   Encompasses deliveries and transfers
•   Can be scheduled to run in batch
•   Automatically combines deliveries
                Picking
• Quantities based on delivery
• Assigned date when picking should begin
• Automated storage location assignment
• Supports serial number tracking and batch
  management
• Integrated with Warehouse Management
  (WM)
                Packing
• Identifies which packaging is to be used
  for specified products
• Identifies and updates accounts
  associated with returnable packaging
• Tracks the packed product by container
• Insures weight/volume restrictions are
  enforced
            Goods Issue
• Event that indicates the change in
  ownership of the products
• Reduces inventory
• Automatically updates the G/L accounts
• Ends the shipping process and prevents
  changes to the shipping documents
          Goods Issue

          Inventory   Cost of goods sold
General
ledger         750       750
            Billing Overview
• Automated invoicing based on sales
  orders and/or deliveries
• Functionality for processing credit/debit
  memos and rebates
• Integration with FI & CO-PA
• Updates customer’s credit data
• Can create pro forma invoices
Automatic Account Assignment
• Defines the G/L accounts that billing entries
  are posted to — revenue, deduction, freight
  charges

 Application Condition Chart of   Sales    Cust      Account G/L
               Type    Accounts   Org.     Acct.       Key  Account
                                           Grp.
     V       KOFI       CHRT      SOxx      01        ERL      610000

    From      From      From      From     From      From      From
    Sales     Table     Sales     Sales   Customer   Pricing   Table
    Doc.                Doc.      Doc.     Master    Proc
                   Billing Methods
                            Delivery   Invoice
Separate invoice    Order
  per delivery              Delivery   Invoice

                            Delivery
   Collective       Order
                            Delivery   Invoice
    Invoice
                    Order   Delivery

    Invoice                            Invoice
                    Order   Delivery
     Split                             Invoice
           Billing Documents
• Explicitly specify documents
• Billing due list — builds a worklist of
  invoices that should be generated

• Automatic posting to FI
          Billing Documents

           Revenue    Customer   A/R recon.
General
               2000   2000       2000
ledger
                Billing Plans
• Periodic — total amount for a planned billing
  period
• Milestone — distributing the total amount over
  multiple billing dates - typically used with the
  project system (PS)
• Installment — evenly proportioned amounts and
  defined payment dates
• Resource related — consumed resources such
  as service or consulting
           SD Milestone Billing
Sales      Sold-to : QAZ Industries         Delivery Date     : 06/20/97
Order      Material : 546-dk1 Generator     Price             : $300,000



          Billing     Description     %     Value    Billing Milestone   Billing
          date                                       block               status
          11/20/96    Contract        10    30,000     -        x          x
Billing   01/20/97    Assembly        40   120,000     -        x          x
 Plan     04/20/97    Operational     40   120,000     x        x
          05/20/97    Acceptance      10    30,000     x        x
          06/20/97    Final invoice   --     --        x
Outline Agreements
• Contracts
• Schedule Agreements
                 Contracts
• Defined quantities and validity period for a
  customer
• The contract is fulfilled by orders placed
  against the contract - release orders
• Contracts are automatically updated
  through release order processing
• Pricing can be assigned to a contract
              Contracts

   Contract
Target Qty: 900
                          Release Order
Order Qty: 700
                          Order Qty: 200
       .
       .
       .

   Contract
Target Qty: 900           Release Order
Order Qty: 750            Order Qty: 150
       Scheduling Agreements
• Defines specific product quantities and delivery
  dates for a customer
• Schedule lines and processed through standard
  delivery processing
• Availability check is performed during creation
  and quantities are passed to MRP
• System automatically updates delivered
  quantities
   Scheduling Agreements

 Scheduling
 Agreement         Delivery
                   5/10 100
Date    Qty        Delivery
05/15   100        6/10 100
06/15   100        Delivery
07/15   200        7/10 200
08/15   300
                   Delivery
                   8/10 300
Backorders
Backorder Processing
   Rescheduling
                Backorders
• Backorder processing
  – determines which orders have unconfirmed
    quantities by customer or material
  – sort the orders according to priority
  – assign available stock to outstanding orders
    or reassign confirmed quantities to high-
    profile orders
               Backorders
• Rescheduling
  – updates the orders with the results of the
    availability check
  – can be used to manage the distribution of
    available inventory when demand is greater
    than supply
• Best if run in batch mode, rescheduling
  can be very time consuming
    Customer Returns




Return
Order
          Goods Receipt
         Quality Inspection

                              Credit Memo
            Customer Returns

1   Order            Delivery   Invoice


                     Returns    Return to
2           Return   Delivery   Inventory


3                                Credit
                                 Memo
          Customer Returns
• Returns document
  – Billing block can be proposed
  – Use the Order reason field to identify the
    reason for the return
  – Full access to pricing and ability to re-price
• Return delivery
  – Issues a goods receipt to place material into
    inventory
          Customer Returns
• Credit memo
  – Billing block must be cleared from Return
  – Posts to FI
  – Can be processed in batch (background)
  – Can be processed collectively (grouped)
Output & Text
  Communication — Output

                        Printed
   Bar Coded           Documents
   Documents

                                     FAX
                     SAP
Email
                   Document
                                   EDI

        Workflow
     Communication — Output
• Output — traditional forms or electronic
  communications produced for internal or
  external partners
• Assigned to business partners & sales
  documents
• Definable media — EDI, fax, print
• Highly customizable — Sapscript
      Communication — Text
• Texts are used for internal and external
  communication
• Created for business partners, materials,
  header or item level of sales documents —
  order, delivery, billing, picking lists
             SIS Overview

• Flexible information system designed to
  support business planning, forecasting
  and reporting
• Pre-defined catalog of performance
  measures and reports
• On-demand access to reports and
  exceptions
• Data maintained in a separate database
Logistics Information System
    •   Inventory Management
    •   Purchasing
    •   Sales and Distribution
    •   Production
    •   Plant Maintenance
    •   Quality Management
    Inventory Information System
         Standard Analysis
•   Material
•   Plant
•   Storage Location
•   MRP Controller
•   Material Groupings
Purchasing Information System
      Standard Analysis
•   Material
•   Vendor
•   Material Group
•   Purchasing Group
•   Purchasing Documents
    Sales Information System
        Standard Analysis
• 5 Pre-defined drill-down reports
  – Customer
  – Material
  – Sales Organization
  – Shipping Point
  – SD Documents
    Production Information System
         Standard Analysis
•   Product Group
•   Material
•   Work Center
•   Production Resources and Tools
             Reporting Tools
•   Value display - absolute or percentage
•   Top N - top 10, top 100, etc.
•   Sorted - ascending or descending
•   ABC
•   Classification
•   Graphics - 2D, 3D

				
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posted:11/10/2012
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Description: Understand SAP Sales and Distribution in Depth with simple Document