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
S io u x F a lls
PLANT
PT00

F r e ig h t D o c k E x p re s s E x p o rt
S h ip p in g P t S h ip p in g P t S h ip p in g P t
SP00 Q U IK EXPT

D ock #1 D ock #2 D ock #3 D ock #2

L o a d in g P t L o a d in g P t L o a d in g P t L o a d in g P t
D1 D2 EX XP
Sales & Distribution

- Master Data -
SD Master Data - Core Elements

r
me

M
ate
sto
Master

r
Cu

ial
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
General plant parameters
Negative stock
Freely definable group name, which is used to
indicate groups of materials with similar
shipping materials, such as liquids or bulk, for
example.
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

G e n e ra l
D a ta

S a le s & D is tr ib u tio n Com pany Code

D a ta D a ta
 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 61000
0
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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