SAP University Alliances Version 2.


Authors Bret Wagner Stefan Weidner

Sales and Distribution (SD)

SAP ERP 6.0 EhP4 Global Bike Inc.


Cross-functional integration Sales and Distribution



Course Overview

 Introduction to SAP
 Navigation  Introduction to GBI  Sales & Distribution  Materials Management  Production Planning  Financial Accounting

 Controlling
 Human Capital Management  Warehouse Management

 Project System
© SAP AG Page 4-2



 Sales Support
 Sales  Shipping and Transportation  Billing  Credit Management  Foreign Trade


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Unit Overview

 SD Organizational Structure
 SD Master Data  SD Processes
- Order-to-Cash Process


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SAP ERP    SD Organizational Structure Client An independent environment in the system Company Code Smallest org unit for which you can maintain a legal set of books Credit Control Area An organizational entity which grants and monitors a credit limit for customers. The responsibility of a sales organization may include legal liability for products and customer claims  Distribution Channel The way in which products or services reach the customer Typical examples of distribution channels are wholesale. or direct sales © SAP AG Page 4-5 . It can include one or more company codes  Sales Organization An organizational unit responsible for the sale of certain products or services. retail.

Determines conditions (i.e.SAP ERP SD Organizational Structure  Division .Combination of Sales Organization.Plant from which the goods should be delivered to the customer  Other SD organization units: © SAP AG Shipping Point Loading Point Sales Office Sales Group Sales Person Page 4-6 . Distribution Channel and Division . products.A way of grouping materials. or services  Sales Area . pricing) for sales activities  Plant (here: Delivering Plant) .

1 Structure for Sales and Distribution Global Bike Client Global Bike Inc. Global Bike Germany GmbH Company Code US West US East Germany North Germany South Sales Organization San Diego Dallas Miami Hamburg Heidelberg Sales Office © SAP AG Page 4-7 .SAP ERP GBI 2.

1 Enterprise Structure in SAP ERP (Sales) Distribution Channel Wholesale WH Distribution Channel Internet IN US West CA West DE North GB North AU North UW00 US East CW00 CA East DN00 DE South GN00 GB South AN00 AU South UE00 CE00 DS00 GS00 AS00 Sales Organization Company Code CC US00 CC CA00 CC DE00 CC GB00 CC AU00 Credit Control Area (global) GL00 Client GBI © SAP AG Page 4-8 .SAP ERP GBI 2.

SAP ERP SD Master Data Customer Master Material Master Sales Condition © SAP AG Page 4-9 .

SAP ERP  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 -  Created by Sales Area Sales Organization Distribution Channel Division © SAP AG Page 4-10 .

SAP ERP  Customer Master Data The customer master information is divided into 3 areas: General Data Company Code Data Sales Area Data © SAP AG Page 4-11 .

DS00 © SAP AG Page 4-12 .SAP ERP Customer Master General Information relevant for the entire organization: Name Address Communication Client XXX Company Code specific information: Acc. UW00 Company Code DE00 Sales Org. Mgmt Payment Bank Sales Area specific information: Sales Office Currency Company Code US00 Sales Org.

SAP ERP  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 © SAP AG Page 4-13 .

Plan. Data Material Master Forecasting Data Storage Data Controlling Data Accounting Data Quality Data © SAP AG Page 4-14 .SAP ERP Material Master Views Sales Data Basic Data Purchasing Data Mat.

UW00 Storage Loc. UE00 Storage Loc. TG00 © SAP AG Page 4-15 . FG00 Sales Org.SAP ERP Material Master General Information relevant for the entire organization: Name Weight Unit of Measure Client XXX Sales specific information: Storage Location specific information: Delivering Plant Loading Grp Stock Qty Sales Org.

SAP ERP  Condition Master Data (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 © SAP AG Page 4-16 .

SAP ERP  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 © SAP AG Page 4-17 .

SAP ERP Sales Order Process Pre-sales Activities Sales Order Entry Check Availability Pick Materials Receipt of Customer Payment Invoice Customer Pack Materials Post Goods Issue Page 4-18 © SAP AG .

© SAP AG Page 4-19 . These documents help identify possible sales related activity and determine sales probability. It contains the following functionality: . internet. and marketing of a companies products and services to its customers.SAP ERP Pre-Sales Activities (CRM Light)  Sales Support is a component of SD that assists in the sales. distribution. and trade fair campaigns based on customer attributes  Pre-sales documents need to be managed within the presales activities: Inquiries and Quotations.Creating and tracking customer contacts and communications (sales activity) • • • • Phone call records On-site meeting Letters Campaign communication .Implementing and tracking direct mailing.

SAP ERP Pre-Sales Activities (CRM Light)  The ultimate goal of all presales activities is to equip the sales technician with all the information necessary to negotiate and complete the potential sale.  Information needed: Past sales activity Past communication Contact information General Company info Credit limits and usage Current backorders  360º view of your customer © SAP AG Page 4-20 .

SAP ERP Inquiry  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.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. .How much will it cost . © SAP AG Page 4-21 .

SAP ERP  Quotation 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. © SAP AG Page 4-22 .

Existing Contract .SAP ERP Sales Order  Sales order processing can originate from a variety of documents and activities . email .Customer contacts us for order: phone.Quotations  The electronic document that is created should contain the following basic information: © SAP AG Customer Information Material/service and quantity Pricing (conditions) Specific delivery dates and quantities Shipping information Billing Information Page 4-23 . internet.

total cost of the order - Line Item(s) • Information about the specific product: Ex: material and quantity. cost of an individual line - Schedule Line(s) • Uniquely belongs to a Line Item.SAP ERP  Sales Order The sales document is made up of three primary areas: Header • Data relevant for the entire sales order: Ex: customer data. contains delivery quantities and dates for partial deliveries © SAP AG Page 4-24 .

SAP ERP Sales Order  The sales order contains all of the information needed to process your customers request. the following information is determined for each sales order: Delivering Schedule Shipping point and route determination Availability Check Transfer of requirements to MRP Pricing Credit limit check © SAP AG Page 4-25 .

or ATP (Availability to Promise) date. © SAP AG Page 4-26 .  The system will determine this date using forward and backward scheduling rules you have defined.SAP ERP Delivery Scheduling  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.

Sched.SAP ERP Backward Scheduling Order Date Material Availability Transp. Loading Goods Issue Requested Delv. Sched. Date 1st 2nd 3rd Transp. Time (1 day) 4th Loading Time (1 day) 5th 6th Transit Time (2 days) Pick & Pack Time (2 days) © SAP AG Page 4-27 .

Sched. Material Availability Sched. Loading Goods Issue Requested New Delv. Time (1 day) Transit Time (2 days) © SAP AG Page 4-28 .SAP ERP Forward Scheduling Order Date Transp. Date Date 1st Pick & Pack Time (2 days) 2nd 3rd 4th 5th Loading Time (1 day) 6th 7th Transp. Delv.

 The route determination will is used to define the transit time of the material that we used in scheduling.SAP ERP 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. © SAP AG Page 4-29 .

SAP ERP  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 © SAP AG Page 4-30 .

calculate taxes and freight.Taxes and freight can be set-up so we can’t manually enter © SAP AG Page 4-31 .Line item pricing is for each specific material.Header pricing is valid for the whole order it is the cumulative of all line items within the order .SAP ERP Pricing  The system displays pricing information for all sales documents on the pricing screens at both the header and the line item level. discounts. surcharges.  The system will automatically search for price. 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. . .

SAP ERP Credit Check  Allows your company to manage its credit exposure and risk for each customer by specifying credit limits. © SAP AG Page 4-32 .  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.

and monitors numerous sub-processes for shipping processing: .SAP ERP Shipping & Transportation  The shipping process begins when you create the delivery document for the sales order. supports.Post Goods Issue  Integrated with the Material Management (MM) and Finance (FI) modules © SAP AG Page 4-33 . This document controls.Packing .Picking .

SAP ERP Shipping Sales Order 1 Sales Order 4 Sales Order 5 Sales Order 2 Delivery 8…13 Delivery 8…16 Sales Order 3 Delivery 8…14 Delivery 8…12 Delivery 8…15 Order Combination Partial Delivery Complete Delivery © SAP AG Page 4-34 .

SAP ERP Delivery Creation  Checks order and materials to determine if a delivery is possible — delivery block (hold). completeness  Confirms availability  Confirms export/foreign trade requirements  Determines total weight & volume © SAP AG Page 4-35 .

SAP ERP Delivery Creation  Generates packing proposal  Calculates weight and volume  Checks scheduling  Considers partial deliveries  Updates route assignment  Assigns picking location  Updates sales order  Determines batches  Quality check (if needed)  Updates sales order © SAP AG Page 4-36 .

quantities © SAP AG Page 4-37 .products.SAP ERP Delivery Document  The Delivery Document initiates the delivery process and is the control mechanism for this process Picking Packing Loading Posting Goods Issue  Changes to delivery are allowable .

SAP ERP 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) © SAP AG Page 4-38 .

SAP ERP 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 © SAP AG Page 4-39 .

SAP ERP 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 © SAP AG Page 4-40 .

Order-based billing .  It will update the customer’s credit status. © SAP AG Page 4-41 .SAP ERP Billing  The billing document is created by coping data from the sales order and/or delivery document.Delivery-based billing  The billing process is used to generate the customer invoice. .

SAP ERP 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. © SAP AG Page 4-42 .

SAP ERP Billing Methods Delivery based Invoicing Delivery 8…20 Invoice 9…45 Invoice 9…46 Order 6 Delivery 8…21 Delivery 8…33 Collective Invoicing Order 9 Delivery 8…34 Order 14 Delivery 8…56 Invoice 9…68 Split Invoicing Invoice 9…91 Order 32 Delivery 8…86 Invoice 9…92 © SAP AG Page 4-43 .

.Reconciling differences between payment and invoice.Posting payments against invoices. this step is managed by the Financial Accounting department.SAP ERP Payment  Payment is the final step in the sales order process.  Final payment includes: .  Payment will create a posting clearing the liability in the A/R account and increases your bank account. © SAP AG Page 4-44 .

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).SAP ERP  Document Flow The document flow and order status feature allows you to find the status of an order at any point in time. © SAP AG Page 4-45 .

because twenty participants made mistakes for me! You cannot make so many mistakes all alone” SAP Co-founder Klaus Tschira on his experiences teaching COBOL to clients at IBM © SAP AG Page 4-46 .SAP ERP Sales Order Process Debugging  “Never again did I learn so much in such a short time.

SAP ERP  Sales Order Process Debugging Document Flow Gives Order Process Status  List of Sales Orders (VA05) Tool to Find Order Need student’s user id/data set number © SAP AG Page 4-47 .

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