SD

Sales and Distribution

A Typical Organisational Functioning

QualityInventory mgmt 

Finance

Corporate office

Production

Sales

Legacy System hurdles

Quotation delays

Order acknowledgement delays

Material Status not update hence Shortages

Failure to meet delivery commitments

Wrong shipments

SAP Integration

R/3R/3Client / ServerClient / Server

ABAP/4ABAP/4

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt

PSProjectSystem

WFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt

HRHuman

Resources

SDSales &

Distribution

PPProductionPlanning

QMQualityManage-ment PM

Plant Main-tenance

Enterprise structure

The Company Code is the basic legal accounting unit of SAP.•IIt is used to prepare financial statements such as P&L and Balance Sheet.•SSales Organization is linked directly to a Company Code.

Company Code

Sales Organization

The Sales organization is the highest hierarchical unit within the SD module.

It represents the organizational unit responsible for sales of goods and services to a customer.

Each sales transaction is processed through a sales organization.

Distribution Channel

The distribution channel is used to provide various ways of supplying goods or services to the Customer.

Typical distribution channels are, for example, wholesale, retail, direct sales.

DivisionDivisions are used to group materials, products or services.

For every division you can make customer-specific agreements such as pricing and payment terms.

SAP Sales Area

The main Sales Area elements are:

Sales Organization

Distribution Channel

Division

All data relevant for sales can be defined per sales area.

SD Organizational ModelSD Organizational Model

Company Code

Sales Organisation

DistributionChannel

Division

Sales Area

SD Organizational ModelSD Organizational Model

Company Code

Sales Organisation

DistributionChannel

Division

Sales Area

Sales Office

Sales GroupSales PersonSales person

Organisational units

Plant

Storage location

Shipping point

Plant

Material management is primarily concerned with the material flow within a company

A plant may be linked to different Sales organisations

A plant in SAP is not only a production plant, but also a delivering plant, a service point..

Customer Master in SAPCustomer Master in SAP

What is a Customer in SAP ?

A natural or legal person who is directly involved in a business transaction with you

Consists of different Business Partner records linked together

What is a Partner Functions in SAP?

Business Partners Records

Bill ToBill To Ship ToShip To

PayerPayer

Sold ToSold To

Customer Master

Records

Business Partner: Sold-to Party

Necessary to create sales orders in SAP

Must be defined for all customer records

A basis for all other Business Partner records, e.g. Ship-to, Bill-to, etc.

Business Partner: Ship-to Party

Necessary to determine the delivery address for shipment and relevant shipping documents (delivery note, order quotation, order confirmation, invoice)

Tax determination is based on the Ship-to address

Separate terms of payments, incoterms, rebate indicators and billing schedule can be assigned at this level

Business Partner: Bill-to Party

Necessary to determine the address for relevant invoice documents (Customer Invoice)

Contact Person information

A company or person who settles the invoices for delivered goods or rendered services.

Business Partner: PayerBusiness Partner: Payer

Customer MasterData

Customer Master -General Data

Customer Master-Company Code Data

Customer Master-Sales Area Data

PARTNER FUNCTIONS

Material Master in SAPMaterial Master in SAP

Material Master

Product and services are combined in SAP under the term material.

All information necessary for the management of a material is maintained in the Material Master, for example, data on sales, purchasing and storage.

Material Master - Sales

The material master is one of the basic sources of data for sales processing.

The material master record is accessed in the inquiry, quotation, sales order, shipping and billing processing.

Material Master

Material Master - Basic Data

The General Data in a material master record is identical for every sales organization.

General data contains, for example, the material number, the material description, units of measure, value, weight, volume and division.

Order Management

Create Customer

Inquiry

77

44

22 33

55

11

66

Inventory checking

Create Sales Order

Create Quotation

Create Invoice

Create Delivery, Pick, Pack and Post Goods

Issue

Analyze Sales Processes

SD –Standards order handling

Processes in Quotation & Order Management

Inquiry

Quotation

Sales Order

Outbound Delivery

Billing

Inquiry Processing

Inquiry:

Customer asks for detailed information about specific goods, in particular their prices

An inquiry can be copied or converted into a quotation or a sales order

Customer: Miller Inc, Boston

StatusFlatscreen Monitor 10 pc InquiryLaser Printer 20 pc Inquiry

Inquiry

Quotation Processing

Quotation:

Legally binding offer to deliver specific products or a selection of a certain amount of products in a specified timeframe at a pre-defined price Its a time period to set the valid date

An quotation can be copied or converted into a sales order

Sold-to Party: Miller Inc, Boston

StatusFlatscreen Monitor X-100 10 pc QuotationLaser Printer Z-230 20 pc Quotation

Quotation

Quotation

Sales Order Processing

Sales Order:A request from the customer to the enterprise to deliver a certain amount of products at a certain time, or to provide services by a certain timeA sales order is a sales transaction

It can be created from an inquiry, a quotation, a sales contract, or directly

Sold-to Party: Miller Inc, Boston

Del DateFlatscreen Monitor X-100 10 pc 200603Laser Printer Z-230 20 pc 200603

Sales Order

Sales Order

Sales Order-Pricing

Pricing in SD

Condition technique.

Pricing in sap is determined using a technique called condition technique.

This Is one of the important configurations we have in SAP

This is used to determine the best out of the available options.

For example we have a product worth Rs 100/-

- for a one time buyer we sell it at Rs 100-

-for a regular customer we sell it at Rs 95-

-for a bulk buyer we sell it at Rs 80/-

So for a single product we have 3 prices , this is achieved through condition technique.

Condition types.

Condition are elements in pricing , like cost, selling price, discounts and surcharges, tax, freight etc.

These conditions in real time we call as condition types in sap.

The most common condition types we use are:

PR00- price

KF00- freight

K007- Discount

JBED- excise duty

JIN1- local sales tax.

Condition tables

Sap stores data in form of tables.

Tables are combination of fields which hold the data.

The data we create for determining the condition is called condition record, and is stored in the tables.

Ex: Price of material x for customer A is Rs 100.

Discount for buying more than 100 unit – 10%

We have standard SAP tables , and also we can create new tables by using the fields which are listed in the field catalogue.

We maintain the condition record using t:code VK11.

Access sequences

An access sequence is a search strategy that the system uses to find valid data for a particular condition type.

The access sequence consists of one or more accesses

The accesses tell the system where to look first, second, and so on, until it finds a valid condition record

You specify an access sequence for each condition type for which you create condition records.

Pricing procedure

The primary job of a pricing procedure is to define a group of condition types in a particular sequence

It defines what values has to be added to the base price and what values has to be decreased.

The standard system contains pre-defined pricing procedures, which contain frequently used condition types along with their corresponding access sequences.

The standard pricing procedure we use is RVAA01.

Price determination in a Sales Document.

Outbound Delivery

Outbound Delivery:The process of picking, packing and shipping the products to the customer

The delivery is created and executed in an ERP system

The status and the document flow are updated in sales order

The delivery process contains the following steps:

Create DeliveryPickingPackingPosting Goods IssueTransportation Planning & Execution

Billing

Billing:The process of creating an invoice for the delivered products and services

Billing is executed

The status and the document flow are updated in sales order

Invoice

Bill-to Party: Miller Inc, Boston

Flatscreen Monitor X-100 10 pc 3,000 USDLaser Printer Z-230 20 pc 10,000 USD

Conclusion

Complete representation of your sales processes

Interlinkage of documents

Several business cases can be covered in one document (one order concept)

All functions related to a sales transaction are available on one interface

Automatic processed functions support the sales force and provide correct data every time

Workflow integration

You can adapt the sales process to your needs via Customizing settings

QUESTIONS

?

Thank YOU