Sales and Distribution (SD) Overview

SD
Sales & Distribution

FI
Financial Accounting

MM PP SM
Service Management

Materials Mgmt.

CO
Controlling

Production Planning

R/3
HR
Human Resources

AM
Fixed Assets Mgmt.

EC

Integrated Solution Quality Client / Server Management PM Plant Maintenance Open Systems
QM IS

Enterprise Controlling

PS WF
Project System Workflow

Industry 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 Data Sales Support Shipping Sales Billing Foreign Trade Sales Info System Transportation .

materials and business partners • Flexible data structures that support the business environment • Specialized master data to support sales order processing .SD Overview — Master Data • Detailed information about customers.

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 • • • • customer order management Highly customizable Sophisticated pricing Integrated ATP Integrated credit management • Sampling of functions – Inquiries & Quotes – Sales Orders – Returns – Contracts & Scheduling Agreements – Consignment – Rush Orders & Cash Sales – Back Orders & Subsequent 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 .

invoice & credit memo Real-time integration with finance (FI) Fully integrated and comprehensive pricing .SD Overview — Billing • Invoice Generation — automatic or • • • • manual Comprehensive set of billing functions Linked documents — e.g.

consolidate.SD Overview — S I S • Flexible tool that allows one to collect. 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 Quotation
Sales Order Post Goods Issue

Shipping

Delivery Note Billing Post Incoming Payment

Picking

Billing

FI A/R

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 .

– – – – – – – availability check MRP updating pricing credit check delivery scheduling export control shipping & route determination .Sales — Sales Order • Core of customer order management • No impact to G/L • Can reference existing documents • Copies key information from master data • Automated standard functions ...

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 .

.g.Shipping — Picking & Packing • Picking: Physical activity of moving goods from the warehouse for further processing (packing. serial number control . batch mgmt. loading) • Packing: Determines packing materials and packing details • Advanced processing includes. e.

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 .

etc. discount.Billing • Generate customer invoice • Updates FI – Customer account – G/L accounts: revenue. • Applies relevant pricing • Updates customer credit .

Sales & Distribution .Organizational Structures - .

Sales Organization Client 860 Pastime Corporation Company Code CC00 Domestic Sales Sales Organization So00 Direct Distribution Channel DI Baseball Division BB Softball Division SB Wholesale Distribution Channel WH Baseball Division BB Softball Division SB Retail Distribution Channel RE Baseball Division BB Softball Division SB Europe Sales Organization EURO Wholesale Distribution Channel WH Baseball Division BB Cricket Division SB Asia Pacific Sales Organization APAC Wholesale Distribution Channel WH Baseball Division BB .

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 .Sales Organization • Sells and distributes products.

Distribution Channel • Identifies how products and services reach the customer • Can be assigned to one or more Sales Organizations .

pricing. partial delivery • Assigned to one or more Sales Organizations .g.Division • Often times used to define product line distribution • Organization level to which customer specific information and requirements are maintained — e.

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 Distribution Channel DI Baseball Division BB Softball Division SB Wholesale Distribution Channel WH Baseball Division BB Softball Division SB Retail Distribution Channel RE Baseball Division BB Softball Division SB .

Sales Area
Domestic Sales Sales Organization SO00 Direct Distribution Channel DI Baseball Division BB Softball Division SB Wholesale Distribution Channel WH Baseball Division BB Softball Division SB Retail Distribution Channel RE Baseball Division BB Softball Division 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 Sales Office

Eastern Sales Office

territory or market .Sales Group • Sales Group – Sub-division of a sales office.

Sales Person • Sales Person – Defined in HR — Personnel Admin.) in sales processing . – Specifically defines an individual rather than a position (sales rep.

Internal Sales Organization Domestic Sales Area Western Sales Office Southwest Sales Group Sales Person Sales Person Northwest Sales Group Sales Person Eastern Sales Office Southeast Sales Group Sales Person Northeast Sales Group Sales 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 Shipping Pt SP00 Express Shipping Pt QUIK Export Shipping Pt EXPT Dock #1 Loading Pt D1 Dock #2 Loading Pt D2 Dock #3 Loading Pt EX Dock #2 Loading Pt XP .

Master Data - .Sales & Distribution .

Core Elements Master Data Pricing .SD Master Data .

2 .4 Forecasting Storage 1 . 1 -General Data Basic Data 1 .Material Master — Sales: sales org.2 Classification Sales: sales org. delivery quantity Delivery unit Quality Management Accounting 1 .2 Costing 1 .2 Basic Unit of Measure Division Material Group Sales Unit Delivering Plant Cash discount -Tax data Country Tax category Tax classification -Quantity stipulations Min. order quantity Min.2 Warehouse Management 1 . 1 .2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 .

A (freely definable) key that’s used to group several materials or services for analysis/reporting as well as search by match code. from which the material is available for sale. if different from the base unit of measure. This is the unit of measure in which the material is sold.Material Master — General Data Base Unit of Measure Division Material Group The Base Unit of Measure is the unit of measure in which stocks are managed within your company. This is a default value only. which allow for a cash discount. You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). Indicator used for materials. Sales Unit Delivering Plant Cash discount . Plant.

Min. State taxes in US. delivery quantity to a customer. quantity a customer can order (in base unit of measure). delivery quantity Delivery unit Min. applicable to this material (e.Material Master — Tax data & Quantity stipulations Tax data Country Tax category Tax classification Country Taxes. Only multiples of this number will be delivered to the customer. .g. VAT in GB) taxable. Federal. order quantity Min. exempt Quantity stipulations Min.

Material Master — Sales: sales org.2 Costing 1 .2 -Grouping terms Sales: general/plant Purchasing Matl statistics group Material pricing grp Volume rebate group Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 .2 Classification Sales: sales org. Basic Data 1 . 1 .2 Warehouse Management 1 .2 Acct assignment grp Commission group Item Category group .4 Forecasting Storage 1 .2 Quality Management Accounting 1 .

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

Material Master — Sales: general/plant Basic Data 1 . Check Shipping data (times in days) Sales: sales org.2 Quality Management Accounting 1 .2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 . matls General plant parameters Negative stock Costing 1 . Grp LoadingGrp Packaging material data Matl grp ship. 1 .2 Trans.2 .4 Forecasting Storage 1 .2 Warehouse Management 1 .2 Classification General data Base unit Gross weight Net weight Avail.

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

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

2 Warehouse Management 1 .2 Costing 1 .2 Sales: general/plant .Sales texts Text specific to the material and in an appropriate language.2 Quality Management Accounting 1 . Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 .2 Classification Sales: sales org.Material Master — Sales texts Basic Data 1 .2 .4 Forecasting Storage 1 . 1 .

Account Groups • Account group determines which fields are to be used in defining customer master data .

optional. change. suppressed or display only Field status controls are also relevant to a specific activity — create.Field Status Field status controls the use of each field within the customer master determining whether a field is required. or display .

Sales & Distribution .Customer Master - .

Customer Master General Data Sales & Distribution Data Company Code Data .

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

Customer Master by Sales Area Customer • Sales Organization • Distribution Channel • Division .

Customer Master — Address & Communication General Data — Address Customer Name Search Term Street address. Country Language General Data — Communication Telephone. Postal code. Data numbers . Fax. City.

Tax information : Reference data / area : Industry: Transport Zone Express station Train station Location code . International Locator No. Group key Tax codes. City code VAT N. Tax jurisdiction code Equalization tax. Sole proprietor Tax on sls/pur. Fiscal address Country code.Customer Master — Control Data General data — Control data Account control : Vendor. Authorization Trading partner.

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 .

g. Ms.) Function . Mr..Customer Master — Contact Persons General Data — Contact persons Name Telephone number Department First name Form of address (e.

Customer Master — Accounting Information Company Code Data Accounting Information Accounting info Reconciliation Account Sort key Head office Interest indicator Interest calculation frequency Last key date Buying group Interest calculation Reference data .

Customer Master — Payment Transactions Company Code Data 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 : Taxes: Account assignment group Tax requirements for the customer .

Customer Master — Partner Functions S&D Data — Partner functions The different partners are assigned • • • • • SP BP PY SH … Sold-to-party Bill-to-party Payer Ship-to-party additional Partner function(s) .

CA Ship-to .Vera Cruz.Vera Cruz.Bakersfield.Assigning Additional Partners — Siesta Baseball League . NM — Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Bill-to Payer Ship-to Ship-to : 10018 — Siesta Baseball League . NM — Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Payer Ship-to Ship-to : 10018 Bill-to Ship-to : 10249 .

Sales & Distribution .Business Partners - .

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

Business Partners • The system creates these four business partners by default. • Since these are automatically assigned partners you may need to add additional partners to carry out your business transactions. • All four may be the same or may be different. Sold-to Ship-to Bill-to Payer . All four are required.

Business partners — Sold-to • Customer that orders the goods • Can perform all primary partner functions — sold-to. ship-to. bill-to • Primary type of business partner • Cannot be linked to other sold-to partners Sold-to Ship-to Bill-to Payer . payer.

Business partners — Ship-to • Party that receives the goods • Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer .

Business partners — Bill-to • Party that receives the invoice • Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer .

Business partners — Payer • Party that sends the payment • Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer .

Business Partners — Example Sold-to Sold-to Ship-to Ship-to Ship-to Bill-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. surcharges and applicable taxes to arrive at the final price final price = gross price . then applies discounts.discounts + surcharges + taxes • Cost-plus pricing determines the base cost and applies the appropriate discounts.discounts + surcharges + taxes . surcharges and taxes final price = cost .

Pricing Components • Pricing is based on a matrix of predefined and custom elements • Delivered element groups (a. conditions) – Prices – Discounts & Surcharges – Freight – Taxes .a.k.

e. material price. sales order) . sold-to party and sales document type (e. customer discount • Is assigned by: sales area. the mechanism used to arrive at the final price • Considers all of the applicable pricing conditions.g.Pricing Procedure • In short.g.

Pricing Procedure • The pricing procedure uses what SAP calls ―the condition technique‖. discount or other condition ($) . • 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.

SOLD PRICING AREA TYPE TO PROCEDURE CONDITION TYPE KEY PR00 KI00 TX00 FR00 ACCESS SEQUENCE PR00 KI00 TX00 FR00 STOPS LOOKING AFTER FINDING FIRST VALUE US01 US01 UK01 UK02 A B A A 1 1 1 1 USSTD USALT UKSTD UKSTD LOOK FOR CONDITION ACCESS OR RECORDS IN THIS ORDER SEQUENCE DER OF CONDITION TABLES PR00 01 02 03 KI00 01 02 03 CUSTOMER/MATERIAL PRICE LIST TYPE/MAT’L MATERIAL CUSTOMER/MATERIAL PRICE LIST TYPE/MAT’L MATERIAL ETC. DISCOUNT .R/3 Pricing Process SALES DOC.25 N/A SALES DOC. ITEM DETERMINE PRICING PROCEDURE FOR ITEM DETERMINE ACCESS SEQUENCE FOR EVERY CONDITION TYPE IN PRICING PROCEDURE ACCESS THE CONDITION RECORDS AND DETERMINE PRICE PRICE THE ITEM UNIFORM SALES AREA & DOCUMENT TYPE & SOLD-TO CONDITION TYPE AND ACCESS SEQUENCE ARE LINKED IN TABLE CUSTOMER/MAT’L OR PRICE LIST/MAT’L OR MATERIAL --$9. PRICING CONDITION CONDITION PROCEDURE TYPE USSTD PR00 KI00 TX00 PRICE DISCOUNT TAXES FREIGHT PRICE PRICE ELEMENT CONTROL PARAMETERS UPPER/LOWER LIMITS FR00 USALT PR00 KI01 ETC.

Price Agreements • Simple price agreements – – – – product customer customer & material customer group & material • Detailed price agreements – pricing scales – rebates – customer expected price .

Record • Item Proposal • Listing & Exclusion • Product Substitution .Specialized Master Data • Customer Material Info.

Customer/Material Info. for example: Material # : Glove Customer # : Pastime Glove • Can further define attributes of the material. Record • Defines a customer alias for a material & description. 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 Quotation Returns Contract Sales Order Cash Sale Rush Order Debit Memo Consignment Scheduling Agreement Returnable Packaging 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 Date 25th Material Availability 26th Transp. 27th Loading 28th Goods Issue 29th Requested Delv. Date 31st Transp. Sched. Time (1 day) Loading Time (1 day) Transit Time (2 days) Pick & Pack Time (2 days) . Sched.

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

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 .

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