An Overview on Sales & Distribution
Agenda
Enterprise Structure
Master Data
Pre sales activity
Sales activity
Business Scenarios
Special Business Scenarios
Customer complains
Scenario wise test scripts
Evaluation
Sales & Distribution
- Organizational Structures -
Sales Organization
BaseballDivision
BB
SoftballDivision
SB
DirectDistribution Channel
DI
BaseballDivision
BB
SoftballDivision
SB
WholesaleDistribution Channel
WH
BaseballDivision
BB
SoftballDivision
SB
RetailDistribution Channel
RE
Domestic SalesSales Organization
So00
BaseballDivision
BB
CricketDivision
SB
WholesaleDistribution Channel
WH
EuropeSales Organization
EURO
BaseballDivision
BB
WholesaleDistribution Channel
WH
Asia PacificSales Organization
APAC
Pastime CorporationCompany Code
CC00
Client860
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 SalesSales Organization
SO00
DirectDistribution Channel
DI
WholesaleDistribution Channel
WH
RetailDistribution Channel
RE
BaseballDivision
BB
SoftballDivision
SB
BaseballDivision
BB
SoftballDivision
SB
BaseballDivision
BB
SoftballDivision
SB
Sales Area
Domestic SalesSales Organization
SO00
DirectDistribution Channel
DI
WholesaleDistribution Channel
WH
RetailDistribution Channel
RE
BaseballDivision
BB
SoftballDivision
SB
BaseballDivision
BB
SoftballDivision
SB
BaseballDivision
BB
SoftballDivision
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
WesternSales Office
EasternSales 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
DomesticSales Area
Western Sales Office
Eastern Sales Office
SouthwestSales Group
NorthwestSales Group
Sales Person
Sales Person
Sales Person
SoutheastSales Group
NortheastSales Group
Sales Person
Sales Person
Enterprise Structure
FICO SD MM
LEpp
Company Company code Credit control area Business area
Sales organization Distribution channel Division Sales office Sales group
Purchase Org
Storage location
Shipping point Loading point
Plant Division
Purchase Org
Document
Organizational Units in Sales and Distribution
RR // 33ll Company codeCompany code
ll Sales AreaSales Area
èè Sales organizationSales organization
èè DistributionDistribution channel channel
èè DivisionDivision
ll SitePlant
ll Storage locationStorage location
ll shipping pointShipping point
Client
The client is the highest entity of a SAP-System
The client is in commercial, organizational, and technical in terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.
Company Code
The company code is a self-balancing unit inside a client
A client can include several company codes.
A client can e.g. be a organisation within a company or a subsidiary.
Accounting data and valuation data will be stored on company code level.
SD-Enterprise Structure Sales Organization Distribution Channel Division Sales office Sales Group
Sales Organisation
The sales organisation divides an enterprise in the demand of the sales.
The sales organisation is responsible for the sales of materials and services.
The sales organisation is divided in distribution channels and divisions.
Each sales organisation has its own entry range.
One sales organisation can be attached to different factories.
Distribution Chanel & Division
The way products reach to the customer Ex ,wholesales ,Retails ,direct sales .
Represents a product line The group of product will make one division
for example : motorcycles, spare parts, service
Plant
A plant is an organisational unit to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects.
A plant is a place where either materials are produced or goods and services provided.
To this data, which are storded on plant level, there are also MRP-Data, Work Plans and BOM‘s.
Purchasing Organisation
The purchasing organisation is responsible for the provision of materials and services.
The purchasing organisation negotiates with the provider such as vendors
The following types of purchasing organisations are possible: There is only one single purchasing organisation
responsible for the whole enterprise . Each entry range has its own purchasing
organisation. Each factory has its own purchasing organisation
Storage Location
Every storage location belongs to one plant. A storage location aallowing the differentiation
of material stocks within a plant. Physical inventory takes place at storage
location level. A storage area that can be defined for a
warehouse in the Warehouse Management (WM) system and can
be subdivided in: Storage Number Storage Type Storage Place
SD: Structure for Sales Order Processing
January 2007 (v1.0) The Rushmore Group, LLC 27
Client 410
Company CodeC100
Plant P100 Plant P101
Sales Area
Sales OrgS100
DistributionChannel (RE)
Division(01)
2 Retail trade
2 Motorcycles 3 Computers 3 Computers
5 Internet
2 Cologne
1 Pumps
1 Wholesale trade
2 Motorcycles
122
123
153
212
2
1 Munich
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Sales AreaSales Organization
Distribution Channel
Division
Sales Area
Sales area : Combination of sales organization, distribution channel & Division .
Master Data
Material data The material data contains all necessary information for the administration of the materials.
Customer- Master data Here all data are filed which are necessary for the business relations to the customer.
Vendor- Master data Here all data are filed which are necessary for the business relations to the vendor
SD: Master Data
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Customer Master Data
Material Master Data
Cust/Mat Info Record
Output Master Data
Condition Master Data
SD: Customer Master Data
Customer Master Contains all of the
information necessary for processing orders, deliveries, invoices and customer payment
Every customer MUST have a master record
Customer Master Data is created by Sales Area Sales Organization Distribution Channel Division
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SD: Customer Master Data
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• The customer master information is divided into 3 areas:– General Data– Company Code Data– Sales Area Data
SD: Customer Master
33
Company Code 102Company Code 101
Company Code 100
Client 410
Sales Org. 101Sales Org. 100
General Information relevant for the entire organization: Name Address Communication
Company Code specific information: Acc. Mgmt
Payment Bank
Sales Area specific information: Sales Office Currency
Business Partners
Ship-to Party
Bill-to Party
Payer
Other
Sold-to Party
PartnerFunction
Master Data: Customer Master
SD: Material Master Data
Material Master Contains all the
information a company needs to manage about a material
It is used by most components within the SAP system Sales and Distribution Materials Management Production Plant Maintenance Accounting/Controlling Quality Management
Material master data is stored in functional segments called Views
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SD: Material Master Views
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Material Master
Basic Data
Sales Data
Controlling Data
Forecasting Data
Purchasing Data
Mat. Plan. Data
Accounting Data
Storage Data
Quality Data
SD: Customer-Material Information Record
Data on a material defined for a specific customer is stored in a Customer material info record.
Info Records contain: customer-specific material
number customer-specific material
description customer-specific data on
deliveries and delivery tolerances
You can also maintain default text to appear on sales orders for that customer
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SD: Condition Master (Pricing)
Condition master data includes: Prices Surcharges Discounts Freights Taxes
You can define the condition master to be dependent on various data: Material specific Customer specific
Conditions can be dependent on any document field
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SD: Output
Output is information that is sent to the customer using various media, such as: E-mail Mail EDI Fax XML
Output examples: Quotation Confirmation Invoice
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SALES & DISTRIBUTIONSALES
40
Sales Order Process
Sales: The Process
41
Sales OrderEntry
Post Goods Issue
Invoice Customer
Pick Materials
Receipt ofCustomer Payment
Pack Materials
Check Availability
Pre-salesActivities
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Sales Flow
Pre-Sales Activity
Sales Order Delivery Billing
General Ledger Accounts
AccountsReceivable
Documents in SD This slide represents the relationship between the processes in sales order processing in the SAP System. The sequence from top to bottom represents the order of events in the sales process.
Sales Processes
SD Process: Inquiry -VA11
An inquiry is a customer’s request to a company for information or quotation in respect to their products or services without obligation to purchase. How much will it cost Material/Service availability May contain specific quantities and dates
The inquiry is maintained in the system and a quotation is created to address questions for the potential customer.
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SD Process: Quotation-VA21
The quotation presents the customer with a 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.
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SD Process: Sales Order-VA01
Sales order processing can originate from a variety of documents and activities Customer contacts us for order: phone, internet, email Existing Contract Quotations
The electronic document that is created should contain the following basic information: Customer Information Material/service and quantity Pricing (conditions) Specific delivery dates and quantities Shipping information Billing Information
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Sales Order: Delivery Scheduling-VL01N
When an order is created the you must enter a requested delivery date for the order or each line item.
The system will then determine a delivery timeline, this will be used when determining our material availability, or ATP (Availablity to Promise) date.
The system will determine this date using forward and backward scheduling rules you have defined.
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Sales Order: Backward Scheduling
48
RequestedDelv. Date
GoodsIssueLoading
MaterialAvailability
OrderDate
Transp.Sched.
TransitTime(2 days)
LoadingTime(1 day)
Pick & PackTime (2 days)
Transp.Sched.Time(1 day)
2nd 3rd 4th 5th 6th1st
Sales Order: Shipping & Route Determination
During the creation of the sales order the system must determine the shipping point from which the material will be shipped and the route the material will take to get from your warehouse to your customers location.
A shipping point is determined for each line item within the order.
The route determination will is used to define the transit time of the material that we used in scheduling.
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Sales Order: Availability Check
Availability Check Determines the
material availability date
Considers all inward and outward inventory movements
Proposes 3 methods of delivery One-time delivery Complete delivery Delayed proposal
Rules are created by YOU
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Sales Order: Pricing
The system displays pricing information for all sales documents on the pricing screens at both the header and the line item level. Header pricing is valid for the whole order it is the
cumulitive of all line items within the order Line item pricing is for each specific material.
The system will automatically search for price, discounts, surcharges, calculate taxes and freight. You have the ability to manually manipulate the pricing at both the header and line item level within the sales order by entering a condition type and amount. Taxes and freight can be set-up so we can’t manually enter.
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Sales Order: Credit Check
Allows your company to manage its credit exposure and risk for each customer by specifying credit limits.
During the sales order process the system will alert the sales rep about the customers credit situation that arises, if necessary the system can be configured to block orders and deliveries.
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SD Process: Shipping
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OrderCombination
Sales Order 1
Sales Order 2
Sales Order 3
Delivery 8…12
PartialDelivery
Sales Order 4
Delivery 8…13
Delivery 8…14
Delivery 8…15
CompleteDelivery
Sales Order 5
Delivery 8…16
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SD4: Schedule delivery and create Delivery notes
Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities Integrated with the Material Management (MM) and
Finance (FI) modules
Picking
Packing
Loading
Post Goods Issue
Delivery Note
Each step in the delivery process updates the delivery note status
Delivery: Picking
Quantities based on delivery note Assigned date when picking should begin Automated storage location assignment Supports serial number/lot number
tracking and batch management Integrated with Warehouse Management
(WM)
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Delivery: Loading and Packing
Identifies which packaging is to be used for specified products (customer preference and UCC-128 considerations)
Identifies and updates accounts associated with returnable packaging
Tracks the packed product by container Insures weight/volume restrictions are
enforced All packed items are assigned to the
required means of transportation
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Delivery: Goods Issue
Event that indicates the legal change in ownership of the products
Reduces inventory and enters Cost of Goods Sold
Automatically updates the General Ledger (G/L) accounts
Ends the shipping process and updates the status of the shipping documents
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SD Process: Billing-VF01
The billing document is created by coping data from the sales order and/or delivery document. Order-based billing Delivery-based billing
The billing process is used to generate the customer invoice.
It will update the customer’s credit status.
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SD Process: Billing Documents
The billing document will automatically create a debit posting to your customer sub-ledger account and credit your revenue account.
It is at this point that the sales process is passed over to Financial Accounting to await payment.
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SD Process: Billing Methods
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Collective Invoicing
Delivery based Invoicing
Delivery 8…34
Delivery 8…33
Order 14
Order 9
Delivery 8…56
Invoice 9…68
Order 6Delivery 8…20
Delivery 8…21
Invoice 9…45
Invoice 9…46
SplitInvoicing Order 32 Delivery 8…86
Invoice 9…92
Invoice 9…91
SD Process: Payment Payment is the final step in the sales order
process, this step is managed by the Financial Accounting department.
Final payment includes: Posting payments against invoices. Reconciling differences between payment and invoice.
Payment will create a posting clearing the liability in the A/R account and decreasing your bank account.
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SD Process: Document Flow
The document flow and order status feature allows you to find the status of an order at any point in time. The SAP updates the order status every time a change is made to any document created in the customer order management cycle (Order-to-Cash).
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SPRO-Front end to back end (User to configuration screen)
/N-back to sap-easy access /O-Open a new window SPRO/IMG-To enter configuration screen
SAP LOG ON
SAP Logon.lnk
Master Data in SAP
Create Material Data Transactionscode: MM01 Change Material Data Transactionscode: MM02 Display Material Data Transactionscode: MM03 ......................................................................................................
..... Create Customer Data Transactionscode: XD01 Change Customer Data Transactionscode: XD02 Display Customer Data Transactionscode: XD03 ...................................................................................................... Create Vendor Data Transactionscode: XK01 Change Vendor Data Transactionscode: XK02 Display Vendor Data Transactionscode: XK03
Create condition master Transactionscode:VK11 Change condition master Transactionscode: VK12 Display condition master Transactionscode: VK13 ............................................................................................
........
Create customer material inforecord VD51 Change customer material inforecordVD52 Display customer material inforecord VD53 ............................................................................................
..............
Create Out put condition master VV11 Change Out put condition master VV12 Display Out put condition master VV13
SAP-TcodesT-codes
Inquiry Quotation Order Delivery Billing VA11 –Create inquiry , va12 change inquiry , VA13 display inquiry VA21 -Create Quotation ,VA22 -Change Quotation, va23 display quotation VA41 -Create Contract, VA42 Change contract , VA43 Display contract.VA01 -Create Sales Order ,VA02 - Change Sales Order ,VA03 -Display Sales Order,VA05 –Blocking /unblocking sales orderDeliveryVL01N –Create delivery ,VL02n –change/PGI ,VL03N –display VL04 - Collective processing of delivery Billing VF01-Create Billing Document,VF02-Change Billing DocumentVF04-Maintain Billing Due List VF03-Display Billing DocumentVF11-Cancel Billing Document
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Thank you
Satyabrata patra
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