A report submitted to Delhi Business School, New Delhi and WEBCOM as a part fulfillment MBA and PGP in entrepreneurship and business

Submitted by: Anoop kumar soni DBS/08-10/S-064 Sec: B Internal Guide: Mrs. Sweta Seth

Submitted to: Mr. Santosh Jena SAP consultant (SD) WEBCOM


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I Anoop kumar soni here by declare that The project report on the topic ³Effectiveness of SAP in SD´ is the topic under my SAP training in SD module which I have done in my PGP specialization provided by DBS, New delhi in the collaboration with WEBCOM And I have completed it in the given time period. All the data taken on this project is true in all my knowledge.

Anoop kumar soni DBS/08-10/S-064 Delhi business school New Delhi- 110044

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Perseverance, Inspiration and Motivation have always played a key role in the success of any venture. Working on this project was a challenge. It is often difficult to understand wide spectrum of knowledge without proper guidance and advice. I wish to express my gratitude to mrs. Sweta ma´am (Senior lecture Delhi business school) and Santosh Jena (SAP consultant SD, WEBCOM) who assigned me the project. He has been constant source of guidance and encouragement in exploring the nuances of the project. He took special interest in the study and gave me his pertinent suggestion. I would like to thank Administration and members of Delhi business school who gave me a golden chance of SAP training. I strongly like to say thank to the Administration and consultants of WEBCOM for providing there support and sap configuration in the college campus. Here a special thank to Mr. santosh Jena for intellectual stimulation. Moral support and constant source of inspiration throughout the project and gratefully acknowledge this assistance and inspiration given to me by him

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sales document style. enterprise structure. sales order cycle.EXECUTIVE SUMMARY This project report deals with the use of SAP SD module for the marketing in any organization. We also define the distribution channel. We have also given the different screen shots of different paths and features. sales area and shipping point and the assignment of these areas with the company code. In enterprise structure we define the company. organization management. sales organization. Page 4 of 95 . we show how the sales process takes place in any organization. division . master data.Integration of subgroups is done. It contains the definition of the. company code. In this report we also show all related transaction codes and path in the enterprise structure. In sales order cycle.

1Advantage 2.1 Material master data 12.1 Company 10.3Creation of new company 11 12 11 Assignment 12 Master data 12. 7 9 9 9 11 14 16 22 25 26 27 31 31 31 32 44 51 51 58 Page 5 of 95 . 1 2 1 Introduction 2 Advantage and disadvantage 2.2 Company code 10.2 Customer master data Topics Page no.2 Disadvantage 3 4 5 6 7 8 9 10 3 Why SAP 4 Understanding the SAP system landscapes 5 ASAP methodology 6 Comparison of SAP and ORACLE 7 Implementation of SAP in SD 8 Enterprise structure 9 My enterprise structure 10 Definitions 10.Content Serial no.

2 Order 14.1 Sales order cycle 14.3 Outline agreement 14.4 Contract 14.3 Partner determination 12.4 Customer 13 13 Pricing and Condition 13.1 Billing 16 17 18 19 16 Findings 17 limitation 18 Conclusion 19 Bibliography 62 64 69 69 77 81 84 85 86 87 89 90 92 93 94 95 Page 6 of 95 .5Schedule agreement 15 15 Out bound delivery 15.1 Pricing Control 14 14 Sales document style 14.12.

In 2008. which marked Page 7 of 95 . Next came SAP NetWeaver. a bundling of SAP¶s enterprise resource planning (ERP). SAP responded by providing companies with the software they needed to sell goods and services online. software applications and a common graphical user interface (GUI). The most current version as of November 2009 is ECC 6. SAP used the name R/3 until the 5. the company went international." The goal of the company was to provide large enterprise customers with the ability to interact with a corporate database in real-time. customer relationship management (CRM). the company states that its goal is "to offer the industry's most comprehensive portfolio of business performance and optimization solutions for companies of all sizes. It eventually became known as the R/1 Germany.0 release. Their product portfolio got a Web interface and was rebranded MySAP. started in 1972 by five former IBM employees in Mannheim. product lifecycle management (PLM) and supplier relationship management (SRM) applications. Anwendungen. and the second iteration of the R system (R/2) accommodated different languages and currencies. and Business Suite. It means "Systems Applications and Products. MySAP was designed to be a corporate Web portal with role-based permissions for employees .INTRODUCTION SAP. Produkte. The "R" stands for real-time. states that it is the world's third-largest independent software vendor. SAP purchased Business Objects.0. The original name for SAP was German: Systeme. At that time the name was changed from R/version to ERP Central Component (ECC). The company promoted how SAP "solutions" could link commerce conducted over the Internet (e-commerce) with traditional bricks and mortar commerce to provide one seamless view of the business. a French enterprise software company that specializes in business intelligence (BI)." SAP's first software application was a financial accounting software suite that ran on a mainframe and was known for its stability. the third iteration (R/3) moved from the mainframe to a client/server three-tier architecture composed of a database. the company¶s development and integration platform and middleware component. When the Internet became pervasive. supply chain management (SCM). In the 1990s. Today. During the 1980s.

software products that address the needs of small and mid-market companies. Page 8 of 95 .software applications for large organizations and international corporations. ERP system takes a lead role because of some of the following reasons Many large corporations use several different and separate information systems. customer relationship management and administrative functions.a major change in the company¶s BI strategy. An ERP system integrates these separate information systems and results in improved data reliability and processing efficiency. ‡ SAP Business Suite . often because they have merged with and/or acquired other companies with varied systems. Simplify business transaction processing and thus work load is reduced. So many companies and corporations have adopted information technology on a large scale by using Enterprise Resource Planning (ERP) systems to accomplish their business transaction and data processing needs. retail and consumer products.service-oriented technology platform (SOA) for integrating information and business processes across diverse technologies and organizational structures. sales. ERP systems are not only used by large corporations but becoming popular with small to mid-sized companies also. which was previously focused around SAP's Business Explorer tools. Advantages of Using SAP R/3 in comparison with other Similar Tools Technology playing a major role in today's business environment. And in this technology SAP R/3 plays a significant role when compared with other similar tools. chemicals. The applications support core business operations such as supply chain managment. insurance. Current products include: ‡ SAP NetWeaver . healthcare. NetWeaver provides the foundation for other SAP software bundles. including banking. SAP Business ByDesign and SAP Business One . SAP offers software for 25 vertical industries. warehouse management. ‡ SAP Business All-in-One solutions.

then no cost is reduced. ERP improves the cooperation of users. to automate inventory posting to G/L. consultants. The only real project aim for implementing ERP is reducing data redundancy and redundant data entry. 5. or it falls. then it might be a successful project. Efficiency Generally. Disadvantages: 1. hardware. do Page 9 of 95 . If this is set as a goal. the big question with ERP is whether the benefit of integration and cooperation can make up for the loss in personal efficiency or not. but more sales assistants etc. 3. Those companies where integration is not so important or even dangerous tend to have a hard time with ERP. ERP does not improve the individual efficiency of users. Less personnel Same as above. if they just did some simple accounting to fill mandatory statements and if internal reporting did not exists of has not been fincancially-oriented. 4. Less reporting or accounting personnel. etc. so if they expect it. training. If they didn't care about it.Advantages and Disadvantages of SAP SAP Advantages: 1. not software. What ERP does is makes the lives of inaccurate people or organization a complete hell and maybe forces them to be accurate (which means hiring more people or distributing work better). it will be a big disappointment. 2. I think individual efficiency can suffer by implementing ERP. Expensive This entails software. implementation. Cost reduction It reduces cost only if the company took accounting and reporting seriously even before implementation and had put a lot of manual effort in it. People are accurate. Or you can hire a programmer or two as an employee and only buy business consulting from an outside source. Accuracy No. ERP software focuses on integration and tend to not care about the daily needs of people. Integration Integration can be the highest benefit of them all.

2. In Navision one can develop almost anything in days. Other software may not be flexible. Page 10 of 95 . SAP can be configured to almost anything.all customization and end-user training inside. Not very flexible it depends. That can be cost-effective.

accessing the right information in real time to identify concerns early. Support changing industry requirements Page 11 of 95 . Improve productivity and insight Leverage self-services and analytics across your organization. Find the best people and leverage their talent in the right job at the right time. efficiency. With SAP ERP. Reduce costs through increased flexibility Use enterprise services architecture to improve process standardization. you can gain the following benefits: Improve alignment of strategies and operations Run your enterprise in accordance with strategy and plans. cross-functional business processes. Extend transactions. and collaboration functions to a broad business community.WHY SAP? SAP ERP: BUSINESS BENEFITS SAP ERP delivers a comprehensive set of integrated. and adaptability. Pursue opportunities proactively. information. Achieve corporate objectives by aligning workforce and organizational objectives. Improve operational efficiency and productivity within and beyond your enterprise.

Web-based technology to integrate your end-to-end processes seamlessly. with 30 years of experience working with organizations of all sizes in more countries than any other vendor. and manage risk. Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing. Optimize IT spending Integrate and optimize business processes. Reduce risk Solve complex business challenges today with SAP. Increase profitability. uniquely qualified to support the best business practices in more than 25 industries. Page 12 of 95 . improve financial control. Improve financial management and corporate governance Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics. Eliminate high integration costs and the need to purchase third-party software. your trusted partner for long-term growth. Gain higher ROI faster Install SAP ERP using rapid-implementation techniques that cost less than half what traditional approaches cost.Take advantage of the SAP NetWeaver platform's latest open. Leverage preset defaults and prepackaged versions available for specific industries. Join SAP's world-class partner network.

Link employee¶s performance to compensation programs such as variable pay plans and longterm incentives. Provide immediate access to enterprise information Give employees new ways to access the enterprise information required for their daily activities.Retain top performers Retain your top performers through clearly defined career and development plans. Page 13 of 95 .

The SAP architecture is typically the technology framework of the SAP system. They system landscape basically is the set-up or arrangement of your SAP servers.Understanding the SAP System Landscape What exactly is SAP System Landscape? How does this phenomenon differ from SAP System Architecture? In this posting. Quality Assurance Server-QAS and the Production Server-PROD. in an SAP environment. the objective to enhance "configuration pipeline management". a three-system landscape exists. with particular emphasis on the system landscape of SAP. especially new comers misunderstands the two concepts. I "x-rayed" they system architecture of SAP R/3. Often times. Ideally. SAP's architecture unlike the system landscape has changed over time (and more recently) with the advent of SAP ECC. closely related questions in a very concise manner. SAP users. A three-system landscape consists of the Development Server-DEV. A Typical SAP Three-System Landscape Page 14 of 95 . In a prior posting. This kind of set-up is not primarily designed to serve as server clusters in case of system failure. I intend to answer the above mentioned.

thoroughly tested in the Quality Assurance system before been loaded into the production (Live) system. unlock the system by changing the global setting option to "modifiable" using transaction SE03. The essence of the sandbox is to test the configuration of the business processes of a company. After you have done that. In such rare cases. Pipeline is the environment where the configuration in the development system is moved to the quality assurance system and finally to the production system. especially at the inception of the project (before the Business Blue Print is signed). your system must have been configured to "not modifiable" (a system locking strategy that enforces the three-system landscape change transport rule). Replicate the changes on the other system. At times. Previous Entry / Next Entry Page 15 of 95 . configuration/changes are first made in the Development system. By and large. objectively confirm that the change transport cannot be performed. even after go-live. Very likely. This approach throws up the transport management system concept. It can also serve as a practice environment. Transport management system is the coordination of the movement of objects and configuration changes from the development system to the Quality Assurance system and then to the Production system. the SAP system landscape ensures that the integrity of data is enhanced via enforcing a controlled configuration changes effect on the target system .Sandbox can also exit separately. Suffice to say that. especially in cases where an SAP note mandates that changes be made directly on the production system.production. The whole idea is to ensure that the configuration of these systems is in sync at any point in time. it is important to state that a test system . effect the change(s) on the system. Note that transaction SCC4 can also be used to lock the system so that client dependent and independent configuration changes are not carried out directly on the production system. this sequence of movement is not possible. Immediately lock the system back by changing the global setting option to "not modifiable" using transaction SE03.At this juncture.

ASAP Methodology Features The implementation of your SAP System covers the following phases: Project Preparation In this phase you plan your project and lay the foundations for successful implementation. Page 16 of 95 . You also refine the original project goals and objectives and revise the overall project schedule in this phase. It is at this stage that you make the strategic decisions crucial to your project: Define your project goals and objectives Clarify the scope of your implementation Define your project schedule. budget plan. Other key focal areas of this phase are conducting integration tests and drawing up end user documentation. and implementation sequence Establish the project organization and relevant committees and assign resources Business Blueprint In this phase you create a blueprint using the Question & Answer database (Q&Adb). which documents your enterprise¶s requirements and establishes how your business processes and organizational structure are to be represented in the SAP System. you configure the requirements contained in the Business Blueprint. which can consist of up to four cycles. Realization In this phase. Baseline configuration (major scope) is followed by final configuration (remaining scope).

it is set up with two clients: Client 000 Client 000 is the SAP standard client. including testing. The SAP original system is held in this client. Elements of the Enterprise Structure The enterprise structure consists of the following elements: Client R/3 System clients have an independent status both in legal and organizational terms. When your R/3 System is installed. You also need to resolve all open issues in this phase. The most important elements include setting up production support. and cutover activities. system management. SAP updates the default values with every system upgrade and release upgrade. The clients within the system can be distinguished by a three-character. Go Live & Support In this phase you move from a pre-production environment to the live system. Client 001 Page 17 of 95 . and optimizing overall system performance. At this stage you need to ensure that all the prerequisites for your system to go live have been fulfilled.Final Preparation In this phase you complete your preparations. You are not allowed to work in this client. monitoring system transactions. alpha-numeric code and are defined in Customizing. end user training. Client 000 contains default values for all tables.

Client-specific elements are objects that are only used in a specific client. Page 18 of 95 . client 000 HR master records user master records Authorization profiles customer-specific programs The following factors must be taken into consideration when you decide whether or not to create a client: y y You have to adapt the system client-specifically to the enterprise structure. Client-independent elements are objects that are used in all clients. and file set-ups client-independent tables transactions programs Standard reporting Authorization objects R/3 library The following objects are defined as client-dependent: y y y y y client-specific tables that must be copied from the original client. You can do your customizing in this client in order to adjust the standard system to your requirements.The content of this client is the same as the 000 client. The system makes a distinction between client-independent and client-dependent elements. The following objects are defined as client-independent: y y y y y y y data structures. that is. table structures. You cannot access personnel data in other clients. Clients are a technical structural feature of an R/3 system. Each client¶s personnel data is protected from unauthorized access. such as field definitions.

you must assign him or her a new personnel number. for example. for example. y y The company code is a selection criterion for reporting. the company code has the following control functions: y The company code is used to generate default values for data entry. address data. the company code is defined by a four-character. employee remuneration information. an employee¶s payroll accounting area. a language code for text output. the following control features are assigned which are relevant for Personnel Administration: y y y the default country key for the employee¶s personal data. Company code Within a client the company code represents the highest level of the enterprise structure. a default value for the currency key for employee¶s basic pay. This is not tantamount to a restriction: You define all of the HR System¶s most important control data at the level of the personnel subareas. and bank data. Page 19 of 95 . The company code constitutes an authorization check unit. In Customizing. Financial Accounting. y y You cannot exchange data between clients. Materials Management or Sales and Distribution application components are set up in addition to the Personnel Administration component. If the Controlling. alpha-numeric code. At the company code level. In Personnel Administration.y You cannot perform reporting across all clients. and these levels belong to Personnel Administration. and you cannot receive or assign clientindependent access authorizations. you must set up the company code so that it also meets their requirements. If an employee moves between two clients.

The personnel subarea has the following organizational functions: y Specifying the country grouping. for example. y y The personnel area is a selection criterion for reporting.This language code is not the same as the logon language. namely the pay scale and wage type structures and work schedule planning. alpha-numeric code. The personnel area constitutes an authorization check unit. and leave types on the basis of a specific personnel subarea. In Customizing. takes place at the personnel subarea level. the personnel subarea is defined by a fourcharacter. The personnel area has the following functions: y The personnel area is used to generate default values for data entry. to set up work schedules. The individual personnel areas in a company code are defined in Customizing and have a four-digit alpha-numeric identifier. which determines the language used in the on-line system. the country grouping must be unambiguous y Assigning a legal entity to differentiate between the individual companies from a legal point of view y It specifies groupings for Time Management. Personnel area Personnel areas divide a company code into sub-units. absence types. Organizational control of the main HR subareas. an employee¶s payroll accounting area. y The personnel subarea is a selection criterion for evaluations. This enables you. for example. Personnel subarea Personnel subareas are a subdivision of the personnel area. substitution types. within a company code. this controls the dialog for entering country-specific personnel data and the setting up and processing of wage types and pay scale groups in payroll accounting. Page 20 of 95 . The respective country-specific control features are stored here.

Defining personnel subarea-specific wage types per personnel area It assigns a legal person for payroll accounting. Page 21 of 95 .y The personnel subarea is used to generate default values for pay scale area and pay scale type for an employee¶s basic pay. y y y It specifies the public holiday calendar.

· Third-largest independent software company · ERP (including Financial. To purchase thirdparty software vender to fulfill the project Page 22 of 95 . etc) · Customer Relationship Management Software · Enterprise Performance Management Software · Internal Audit& Compliance Software · Supply Train Management Software · Business Intelligence · NetWeaver Tech Platform · Core System · Policy Administration System · Claim Administration System · Reinsurance Administration · The largest vender of data base software · Second largest independent software company · Oracle · Oracle Business Intelligence (Financial) · PeopleSoft · Data Base Software Siebel Client Management Software · Hyperion Enterprise Performance Management Software · BEA middleware products · Oracle business No core system for insurance industry. Human Resource.Comparison of SAP and ORACLE Item SAP ORACLE Company Information Headquarter · Germany · USA Position in Market Product Line Experience in Insurance Domain Product Line · The largest vender of management software.

Backup& Restore.Partner System · Commission Administration System · Billing& Payment Administration System · Insurance Industry Client Relationship Administration System · Financial Assets Administration System · ERP · IBM · Accenture · PWC · Financial Accounting · Management Accounting · Capital Management · Asset Management · Financial Reporting Platform · Budget Management · Expense Management · Financial Performance Management · Audit Information System · GRC · New-Version Budget planning · Software package includes system performance monitor. System function. etc · · · · Oralce Financial · OFSA · I-Expense · Treasury · Hyeperion Software Package& Technical Support Modules of Finance Sub System Other Function · There is no System function in the software package Purchase · Not based on module · Base on module Page 23 of 95 .

not flexible · There is no expense allocation function · No such experience · IT capability · Not very easy · Many enhancement Need to be developed · IT orientation · Oracle worldwide technical support · Java · Oracle · No Platform Maintenance Issue Technical support Develop Language Data Base Open Source Page 24 of 95 . to support cost management and analysis in more efficient way · Management accounting is flexible · Experienced in interface between bank and insurance · Business user capability · Easy · Configuration can satisfy many enhancement requirement · User orientation · SAP worldwide technical support · Java · Open-SQL · IBM DB2 · Oracle · MS SQL · Yes · User accounts& licenses will also be taken into price consideration · Complicate in COA setting.Method Expense Allocation Interface between Bank and Insurance Focus on Satisfy CIRC regulation Enhancement · Financial accounting and management accounting are independent.

labs locations are hosting SAP Research groups. and provide insight into the market needs 4. SAP Labs is the research and development organization of the parent company. not-for-profit organizations of SAP customer companies and partners within the SAP Ecosystem that provide education to their members. Partnerships are core to SAP¶s strategy and in its 35 years of history the network of software solution providers. the SAP User Group Executive Network (SUGEN) has been established to foster the information exchange and best practice sharing among SAP User Groups and to coordinate the collaboration with SAP for strategic topics. 3. 5. User Groups are independent. technology and services partners has developed into a broad ecosystem that is among the industry's largest. 2. also called Active Global Support (AGS) is a global organization to provide support to SAP customers worldwide. In 2007. Page 25 of 95 .IMPLEMENTATION OF SAP IN ERP: 1. influence SAP product releases and direction. distributors. Many. exchange best practices. SAP has its development organization spread across the globe. but not all. value-added resellers. SAP customer support.

Enterprise Structure:

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MY Enterprise Structure:

Nokia limited



Nokia Code

Nokia (NKIA)



Delhi Storage Location

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SAP enterprise structure is organizational structure that represents an enterprise in SAP R/3 system. It consists of some organizational units which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. Organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle specific business functions. We must set the enterprise structure correctly in the first place. The change of it usually requires a great effort and very time consuming. To set it up correctly we must have a comprehensive knowledge about the business processes and how to map it to SAP configuration.

A specific organizational unit is defined by a specific function or module in SAP. Company code is defined by FI module. Plant is defined by Logistics function. Storage Location and Purchasing Organization are defined by MM module. In SD module we have to define Sales Organization, Distribution Channel, and Division. We have an option whether to use Sales Office, Sales Group, and Sales Person or not. Enterprise structure consists of following components:

Company            Company Code Credit Control Area Sales Organization Distribution Channel Division Sales Office Sales Group Sales Person Plant Storage Location Warehouse

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SAP easy ACCESS screan It is the primary screan in SAP. When we login in the SAP the first window appeas that is called SAP easy access screan (figure 1) (figure 1) easy access screan Customising screan When we type SPRO the new window apears which called customising screan (figure2) Page 29 of 95 .

IMG screan (implementation guide) Img screan is reffered as implementation guide. (Figure3) Page 30 of 95 .

In the SAP system. y Companies must be cataloged in a list of company IDs which is consistent across the group. A company can comprise one or more company codes. must be maintained in each client. The parent company usually provides this list of company IDs. When you create a company you should bear in mind the following points relating to group accounting: y If your organization uses several clients.1: DEFNITIONS: COMPANY A company is an organizational unit in Accounting which represents a business organization according to the requirements of commercial law in a particular country. for example. are created at company code level. COMPANY CODE A Company Code is a unit included in the balance sheet of a legally-independent enterprise. y It is also acceptable to designate legally dependent branches 'companies' and join them together as a legal unit by consolidation. The Company Code is the smallest organizational unit for which we can have an independent accounting department within external accounting. Balance sheets and Profit and Loss statements. Page 31 of 95 . the companies which only appear as groupinternal business partners. a company within a corporate group (client). This is a precondition for the account assignment of a group-internal trading partner. a company code is represented by a unique 4-digit alpha-numeric for a specific client. In SAP. consolidation functions in financial accounting are based on companies. and are not operational in each system. required by law.

Creation of new company In SAP when we go for the practicle field we have to customise the SAP according to the need of client the first step in the customising process is to create a new company as per the ne SAP Easy Access: SPRO Sap Reference IMG Edit. copy. company data then double click on position and search company code then enter and highlight your company code go to in new entry and make initial changes save the changes go back in the address fill the detail finally save the document Or we can use Tcode-OX02 Now the next step is to check or verification of your company by using T code OBY6 Now. company code then goto copy button and copy your company code from 1000 Or we can also go directly in this screen by using T code EC01 Now the next step is to make initial changes in the company code the path is Edit. creations of the company go to Define company make new entry give company details save it and back. Enterprise Structure Financial Accounting Follow the above defined path and double click on edit. Copy. Check Company Code. copy. Page 32 of 95 . Delete.

Company Company Code Nokia NKIA Page 33 of 95 .Complete address and details of comp.

Check Plant Copy. A plant can be assigned to several combinations of sales organization and distribution channel. A company code can have several plants. Plant is used in Material Management (MM). A plant is represented by a unique 4-digit alpha-numeric for a specific client. check plant then go to copy option showing as below : Logistics Page 34 of 95 . Production Planning (PP). A plant can have several shipping points. delete. Edit. A single business area is assigned to a plant and to a division. A plant can be defined as a maintenance planning plant y y y y y The Path is Spro IMG Enterprise structure Definition -Financial accounting Define Copy. A shipping point can be assigned to several plants.PLANT A plant is the place of production or simply a collection of several locations of material stocks in close physical proximity. Several storage locations in which material stocks are managed can belong to a plant. and Plant Maintenance (PM) module. The plant is embedded in the organizational structure as follows: y The plant is assigned to a single company code. A plant is assigned to one company code.

Now go to define plant and search your plant to make initial changes go to address and give required changes Save your plant Plant Plant Code Nokia Delhi NKIA Page 35 of 95 .

We can define a division-specific sales structure. business area account assignment can be carried out for transactions in Materials Management. Define master data within a division for customers as well as your own conditions and pricing. The division is used as a selection criterion for lists of sales documents and the work list for deliveries. In order to adapt the functional scope of a division to the organization in your company. Within a division. the business area is determined in Materials Management from the division and the valuation area. Create shared customer master data and conditions. using a common division. which apply to several divisions. Allocate a business area to a division from a plant. Define for each sales document type that all items of a sales document must belong to the same division. A material is always assigned to one division only.DIVISION Division is a way to group materials or services. you should process the following check list: y y y Allocate a division to one or more sales organizations. This way. Allocate a division to one or more distribution channels. The items of a delivery or a billing document can belong to different divisions. the use of divisions allows us organize our sales structure around groups of similar products or product lines. As of Release 3. Define sales offices for a division. A wide range of materials or services can be divided into divisions. y y y y y y y Page 36 of 95 . A material or service is always assigned to just one division. In SAP SD. we can also carry out statistical analyses or devise our own marketing strategies.0.

The above sales organizations have been created because of following considerations ± Page 37 of 95 . All sales documents are created for a sales organization. check division Define division definition financial accounting logistic In this step we will only define division not to copy go to new entry and define division Division Division Code Nokia division NK SALES ORGAIZATION Sales organization is the basic organizational element in SD. Sales organization can be defined based on: y y y Division of sales function of the company based on Geography or sub-businesses of the company Any other sales criteria.SPRO img enterprise structure defines. copy delete. Sales organization is defined as a 4-digit alpha numeric code with external numbering.

retail channel.y Within a sales organization. y The path is To sum it up. by checking in position select whole line of your sales org. such as wholesale channel. the zonal nature of the organization structure is mapped using sales organizations. This allows a sales organization to have its own customer and material master data as well as its own conditions and pricing. and go to address to make changes Sales Organisation Sales Organisation Code Nokia Sales Organization NKSL DISTRIBUTION CHANNEL Distribution Channel is an organizational unit that represents the channel through which the materials or services reach the customer. delete. sales organization copy delete check sales organization Go to define sales org. Page 38 of 95 . direct sale channel. A sales organization is the highest summation level (after the organizational unit Client) for sales statistics with their own statistics currency. etc. and find your sales org. you can define your own master data. y y Define sales document types within a sales organization. check. Spro img---enterprise structure definition financial accounting sales and distribution define copy.

you should process the following check list: y Allocate a distribution channel to one or more sales organizations. y y y Create master data for a representative distribution channel which is then also used in other distribution channels. determine sales document types. Allocate one or more plants to a distribution channel. The entire sales document is therefore entered for a distribution channel. Within a distribution channel. y y y The path is Spro img distribution enterprise structure definition define copy delete check dist. y For a distribution channel. The distribution channel can be used as a selection criterion in lists. In order to adapt the functional scope of a distribution channel to the organization in your company. Channel financial accounting define dist channel sales and Page 39 of 95 . You can determine the printer destination for messages differently for every distribution channel on the basis of the sales and billing documents. y y y The items of a delivery can belong to different distribution channels.A distribution channel can be assigned to one or more sales organizations. Determine sales offices for a distribution channel. All items of a billing document belong to a distribution channel. you can define master data for customers or materials as well as conditions and pricing. All items of a sales document belong to a distribution channel.

y y y y Physical inventories are carried out at storage location level.Distribution Channel Distribution Channel Code Nokia distribution channel ND STORAGE LOCATION A Storage Location is a storage area comprising warehouses in close proximity. A storage location has a description and at least one address.A storage location is the place where stock is physically kept within a plant. A Storage Location is represented by a unique 4-digit alpha-numeric for a specific plant. It is possible to store material data specific to a storage location. Stocks are managed only on a quantity basis and not on a value basis at storage location level. Storage locations are always created for a plant. A storage location has the following attributes: y There may be one or more storage locations within a plant. Material stocks can be differentiated within one plant according to storage location (inventory management). Page 40 of 95 .

The path is Spro img management enterprise structure definition maintain storage location financial accounting material Storage location: Storage location Storage location code Nokia Store NKSL Page 41 of 95 . You can assign more than one storage location to the same warehouse number within a plant.y A storage location can be assigned to a warehouse number in the Warehouse Management System . y Storage locations are always created for a plant.

A shipping point is a physical place and should be near the delivering plant. More than one shipping point can be assigned to a plant. The shipping point is used as a selection criterion for lists of deliveries and the work list deliveries. A delivery is always initiated from exactly one shipping point. Thus. y y y y The shipping point can be proposed automatically during order processing depending on the plant. Each outbound delivery in the SAP system is processed by one shipping point. It can also be. a mail depot. a group of employees responsible (only) for organizing urgent deliveries. You assign a shipping point in the SAP System at plant level. y A shipping point has an address. all items of a delivery belong to one shipping point.SHIPPING POINT The shipping point is the highest-level organizational unit of shipping that controls your shipping activities. loading group and shipping condition. or a rail depot. we should process the following check list: y The shipping point is the top level in the organization for shipping. y Page 42 of 95 . The shipping point can be a loading ramp. A shipping point can be divided into several loading points. In order to adapt the functional scope of a shipping point to the organization in your company. A shipping point can be allocated to several plants. for example. We can also assign several plants to a shipping point in the SAP system. Groups of deliveries also belong to exactly one shipping point.

The path is Spro img enterprise structure definition financial accounting execution define copy delete check shipping point logistics Shipping Point Shipping Point Code Nokia Shipping Point NKSP Page 43 of 95 . picking or goods issue.y The shipping point is used as a selection criterion for processing deliveries like printing.

Page 44 of 95 . This establishes a link between the SD and FI systems. A plant can only belong to one company code The paths are Spro img enterprise structure assign plant to company code definition assignment logistics general Assign sales organization to company code You can use this step to define the allocation of sales organizations to company codes. you assign each plant to a company code. A sales organization belongs to just one company code.ASSIGNMENT Now the next and very important step is to assign all the codes with each other making the assignment in all required fields: Assign plant to company code In the step "Assign plant to company code".

Assign distribution channel to sales organization
In this

step, you allocate the distribution channels to a sales organization. In this case, as many distribution channels as desired can belong to a sales organization. In addition, a distribution channel can be valid for several sales organizations. The path is same as above

Assign division to sales organization In this step, you allocate as many divisions as desired to a sales organization. Any one division can belong to several sales organizations.
The path is same as above

Page 45 of 95

Assign sales organization - distribution channel - plant Use this step to assign any number of plants to a combination of sales organization and distribution channel. A plant can be assigned more than once.

Page 46 of 95

Now go to business area account assignment for defining rules by sales area Define Rules by Sales Area For business area account determination, you have to define for each sales area the rules according to which the SAP System should find a business area. Note
y y

If you do not specify a rule for a sales area, account determination cannot be carried out for each business area. Currently you cannot change the rules for determining the business area in Customizing

The path is Spro img assignment definition assignment sales and distribution business area account

Define rules by sales area Then give position .

Now in the same path next step Assign business area, plant, and distribution click position and give business area (0001)

Page 47 of 95

. you assign business areas to sales areas for automatic business area account determination. The SAP System then finds the corresponding business area for account assignment using plant and item division in the case of revenue postings. The next step in the same path Assign business area by sales area Assign Business Area by Sales Area In this IMG step. you assign one business area to each of the combinations of plant and division for automatic business area account assignment.Assign Business Area to Plant and Division In this IMG activity. The system then finds the corresponding business area for account assignment using the sales area for: y y Revenue postings Value postings due to material movements Page 48 of 95 .

Any one shipping point can belong to several plants. Page 49 of 95 .Now the final assignment of s&d module Assignment of shipping point to the plant Spro img enterprise structure logistic execution assign shipping point to plant Assign shipping point to plant In this step. you can allocate as many shipping points as desired to the plants.

To check the assignment structure t-code is /NEC01 /nec01 ---structure----navigation Page 50 of 95 .

That¶s why a material is always assigned to just one division. By doing so. depending upon the views selected from the user departments. MRP (Material required planning) 1. Purchasing 3. Material Master: It is a Master file which contains information of a particular material. such as: ³minimal order quantity´ and ³minimal delivery quantity´ data.3.4 Page 51 of 95 . We can set different data of a material for each combination sales organization and distribution channel.Master data Material master Inferior regarding material 3 tabs---1 basic data tab 2 sales data tab 3 account tab MATERIAL MASTER DATA Division is a field in the material master data (it can be input/edited on ³Basic Data 1´ view by MM01/MM02 t-code). To allow it. A material can be sold through one or more distribution channels in one or more sales organization. Basic data 1 & 2 2.2. Different types of views available in Material Master Record are 1. we have to maintain the material master data for each combination of sales organization and distribution channel. Warehouse Management 1 & 2 5. for example. a material must be ordered by customer minimal 1000 PC for wholesale channel and 10 PC for retail channel (assumed we only have one sales organization). General plant data storage 1 & 2 4.

The Material type defines certain attributes of the material and has important control functions Use When creating a material master record. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. Forecasting 13.Raw Material FERT . Costing 1 & 2 8. Plant Stock 10. trading goods. the material type determines: ‡ whether the material number is assigned internally or externally ‡ from which number range interval the material number comes ‡ which screens are displayed ‡ the order in which screens are displayed ‡ which department-specific data is displayed for the user to enter.Finished Product HALB. Storage Location Stock 11. Different Material Types available: ROH .6. Classification 12. Quality Management 9.Semi finished Product Page 52 of 95 . Accounting 1 & 2 7. Purchase Order Text 14. Foreign Trade: Import Data Material Type: It is a key that assigns the material to a group of materials such as Raw materials.

an automobile can have different types of paintwork.HAWA. Non-stock materials (NLAG): Non-stock materials are not held in stock because they are consumed immediately. but not by value. and engine.Spare Parts PIPE . but not sales data since they cannot be sold.Perishable Goods Configurable materials (KMAT): Configurable materials are materials that can have different variants. Packaging materials (VERP): Packaging materials are used to transport goods and come with the goods free of charge. Finished products (FERT): Finished products are produced in-house. A material master record of this type contains purchasing data. For example.Manufacturer Parts FGTR .Pipeline material LEIH .Trading goods DIEN .Drinks FOOD. Non-valuated materials (UNBW): Non-valuated materials are managed on a quantity basis.Foods FRIP . Semi finished products (HALB): Semi finished products can be procured externally and Page 53 of 95 . A material master record of this material type is managed on both a quantity basis and value basis. trim.Returnable Packaging HERS. Since they cannot be ordered by Purchasing. a material master record of this material type does not contain purchasing data. Raw materials (ROH): Raw materials are always procured externally and then processed.Services ERSA .

Data 1 4. storage location 2. They may be kept in stock. you are required to classify the material according to industry sector and material type. Sales: Sales Org. General Plant Data Storage 2 8.manufactured in-house. A material master record of this material type can contain purchasing data. Data 2 5. accounting information etc. They cannot be stored or transported. The company then processes them. storage location 1. When you create a material master record. Page 54 of 95 logistics material management create material material master material y y y y y . general plant. Sales: sales Org. After entering the window will open containing nine required fields like basic data 1. Spare parts (ERSA): Spare parts are used to replace defective parts. A material master record of this material type can contain both purchasing and work scheduling data. Basic Data 1 2. Sales: General/ Plant Data 6. Now select the required nine tabs as: 1. Accounting 2 Then Click on Organization levels select Views & Press Enter. Accounting 1 9. select Industry Sector & Material Type andPress Enter. Enter Plant & Storage Location then Press Enter. General Plant Data Storage 1 7. Industry Sector Key that specifies the branch of industry to which the material is assigned. but not sales data The path isSap easy access create (general) Or direct by T codes of creating material (MM01) y y After following path. Services (DIEN): Services can be performed internally or procured externally (outsourced). basic data 2. Basic Data 2 3.

Data 2 5. General Plant Data Storage 2 y y y Plant Gross weight Net Weight 8. 3. Basic Data 1 y y y y y y y Material Description Basic Unit of Measure Material Group General item category Gross Weight Net Weight Volume etc 2. General Plant Data Storage 1 y y Basic Unit of measure Storage location 7.Fields in different views in Material Master 1. Basic Data 2 y Contains Design Drawing information. Sales: Sales Org. Sales: Sales Org. Sales: General/ Plant Data 1 6. Data 1 y y y Plant Division Storage Location 4. Accounting 1 y y y y y y y Basic Unit of Measure Price control Price unit Currency Moving & Standard Price Total Stock Total Value Page 55 of 95 .

y Division 9. Accounting 2 After entering all the required information save the data and the material will be generate My material is PAGER Page 56 of 95 .

we can see our stock Page 57 of 95 .After filling the material.The next step in master data is to post the good or transfer of goods Transfer (Posting) of Goods. movement type. After that the document will be posted and ten digits code will be generated The path is /NMB1C Give document date. Write Document and Posting dates and Movement type 501 and Enter. and storage location To See your Stock / MMBE: .We can see our stock in the storage location by using the Transaction Code MMBE . posting date.MB1C After loading group we have to transfer goods to the storage location and use the Transaction Code MB1C. plant and Storage location click on Execute button. Window will open write the Material and quantity and Enter and then save it.

It also includes all the information about a customer that you need to be able to conduct business with him. It determines which fields have to be or can be filled when creating the master record. You must create a master record for each account that you require. you need the following objects: y Number Range The number range determines the number interval from which the account number for the master record is to be selected. all other fields can be left blank 2 sales area sales ± customer pricing procedure.acct. Accounts which require the same master record fields and use the same number range are created using the same account group. billing. fill data. You define the status dependent on the account group. You can also determine the status dependent on the processing type (transaction) and on the company code. The type of number assignment and a number interval are determined using priority shipping condition. The account number must be assigned when creating a customer master record. y y To do this. you make the settings for preparing to create customer master records. The master record contains data that controls how business transactions are recorded and processed by the system. all business transactions are posted to and managed in accounts. Field status The field status definitions determine the status of the fields on the screens for the master data. A number range is allocated to the account group. you should consider the following: Page 58 of 95 . terms of payments tax documents partner function 3 company code data. Preparations for Creating Customer Master Data In the following steps. To do this. Using the number range. you also determine whether the numbers are assigned internally by the system or externally by yourself. Account group The account group is a grouping of properties which control the creation of master records. mgt reconciliation account terms of peyments CUSTOMER MASTER DATA Purpose In the SAP System.NOW TO MAINTAIN CUSTOMER MASTER DATA To create a customer master data you have to maintain atleast 3 required mandatory fields These fields are 1 General data. co terms.

You use the account group to determine: y y the interval for the account numbers whether the number is assigned internally by the system or externally by the user (type of number assignment Page 59 of 95 . all fields of the one-time account screen are ready for input during document entry. If you do not specify a reference account group. y How many account groups do you need? You must create at least one account group if you do not use the groups available in the standard system. The number of account groups which you need also depends on whether you use these groups for the layout of the screens. you should try and take into consideration not only the current customer master but also future developments. as previously. The number of number ranges gives you an initial clue as to the number of account groups. You can also define reference account groups for one-time accounts. When creating a customer account. for example. you must specify an account group. then. You can use these to control the fields of the one-time account screen so that. you determine the account groups for customers. You can specify a reference account group under "Control" in the "General data" part of a one-time account's master data. For example. Your number ranges are allocated to the account groups. If you have determined that you require several number ranges. then you must create at least as many account groups so that you can use the number ranges. y Should the screen fields have a special field status dependent on the account group? This status can depend on o o the company code in which the master record is created the transactions with which the master record is processed.y How many number ranges do you need for your customer master records? For the size of the number intervals. certain fields are displayed as required fields or are hidden. in the standard system two account groups are recommended: one group for standard accounts and another group for onetime accounts. Define Account Groups with Screen Layout (Customers) In this step.

y y y y Select payment transaction then terms of payment and then tick required entry. then sales and then tick required entry in pricing procedure. Select sales data. Select company code data.The path is Spro img financial accounting acct receivable and acct payable customer acct master data preparation for creating customer master data define acct group with screen layout position acct group(ZAG2) Steps: y y y y y Find ZAG2 from positions and then copy as. Page 60 of 95 . Go to general data and double click and select address. Select shipping then tick required entry of shipping conditions. Select billing then billing and incoterms and tick required entry in both. Select name 1/ last name and tick the required entry tab. then account management and then tick required entry of reconciliation account. Give your account group and name.

My new customer account group Account group Name Next step is in to go NKBB Nokia Bulk Buyer /nxd01 and click on general data. address. and required entry Page 61 of 95 .

the partners are adopted from the customer master records of the sold-to parties into the sales and distribution documents. Page 62 of 95 . range to customer account group Assign Number Ranges to Customer Account Groups In this step we assign the number ranges we created in the preceding step to the account groups for customers.There are a no of mandatory fields which we have to check for required entry Like in company code data we have to choose reconciliation acct The next step is to assign no. We can use one number range for several account groups. When creating a customer master record. \ Group Name Number range Now set up partner determination NKBB Nokia Bulk buyer 02 Partner Determination In the following menu options. According to the rules defined here. the SAP System proposes the allowed partner functions to be maintained. you define the rules according to which automatic partner determination is to be carried out.

The following partner objects exist: y y customer master record sales document o o header item y delivery Page 63 of 95 . for example. Select a partner object and define the rules for partner determination for this object. employees.You have to edit the following points for the function "Partner determination": y Partner function You define with the help of the partner function which functions exist for the partners ( customers. You define partner determination for each of these objects individually. y Partners allowed for each account group You allocate the permitted partner functions to every account group customer. to an account group customer or a sales document type. vendors. Partners are contained both in the customer master records and in the sales and distribution documents . and so on) in your system. y Procedure allocation You allocate each partner determination procedure to an actual partner object using a key. y Partner object Partners are possible in the customer master record and the so-called partner objects in the sales and distribution documents . y Function conversion You can define the key of the partner functions according to the language. y Partner determination procedures You define partner determination procedures which contain all the allowed partner functions for every partner object.

all objects maintained for partner determination are transported. you can check the table entries and delete the entries which are not to be transported. Note on tranport interface In the transport.o y header billing document o o header item y sales activity After defining the partner functions. Only when you have checked and. select one partner object after the other and define the partner determination procedures for the selected object. Path is Sales and distribution determination basic function partner determination set up partner Double click on set up partner determination for customer master data Then double click on acct group function assignment Page 64 of 95 . In the correction which is created for the transport. changed the partner determination for all the partner objects is the function "Partner determination" completed. if necessary.

Examples of these services are: y y y Goods delivered Services performed Rights transferred Customer master data is maintained on four tabs for the following three views: y General data o General data for customers y y Company code data Sales area data A) Sales B) Shipping C) Billing document D) Partner Page 65 of 95 .Give partner determination Now the next step is to create new customer T code is XD01 Customer Business partner from whom receivables are due as a result of services rendered.

Click on company code data Reconciliation acct 140000 Click on payment transection Give terms of payments Click on sales area data Give customer pricing procedure Shipping condition Billing document Incoterms Terms of payments Account group Customer number Nokia bulk buyer 0000100186 Page 66 of 95 .Give name and details of the customer.

The specification of a shipping point is required for creating a delivery for an order item. Shipping conditions: 01 ± As soon as possible 10 ± Immediately Path is Spro img logistics execution shipping basic shipping function point and goods receiving point determination assign shipping point Go to position cursor Give shipping condition 01. In addition. y y Shipping conditions of the sold-to party or the sales document type Loading group of the material In the following menu options. you can specify a shipping condition for particular sales document types. on the basis of the ship-to party and the material. the loading groups and the rules for the shipping point determination. You can manually change the delivering plant of an item. loading group. you allocate the shipping points to the desired combinations of shipping condition and loading group for each plant. You can change the shipping point in the sales document manually. and plant shipping Page 67 of 95 . the SAP System determines the shipping point when processing a sales document. you define the shipping conditions.Now maintain shipping point determination Shipping Point and Goods Receiving Point Determination For each item. Assign Shipping Points In this menu option. The automatic determination of the shipping point depends on the following criteria: y delivering plant of the item The delivering plant is automatically determined by the SAP System in the sales document item. Shipping points are maintained in Customizing in Section "Create shipping point".

Then enter and remove 1000 from shipping point and give your own shipping point Shipping condition Loading group Plant 01 0001 NKIA Again same procedure for shipping point determination for 10 (immediately) Page 68 of 95 .

for example. for example. You can define an access sequence for each condition type. determine whether different prices apply to individual customers or customer groups and how surcharges and discounts are calculated. The condition type defines. you create condition records in the relevant condition table. The system automatically determines the gross price and any surcharges and discounts that apply to a specific vendor according to defined conditions. You should be familiar with the pricing criteria before making the necessary settings for pricing in the SAP System. on a product master. The system uses the gross price and these surcharges or discounts to determine the net price. when a shopping cart or purchase order is created. SAP Enterprise Buyer uses Pricing when purchase documents are being created. Pricing consists of the following elements: y Condition Type A condition type serves to differentiate between prices in the system. In Enterprise Buyer the access sequences are predefined. Condition Table A condition table contains price information on a master data type. Access Sequence An access sequence is a search strategy with which the system looks for valid data for a specific condition type. y y There are two types of pricing¶ internally And Externally Pricing Control The following steps describe how you should set up pricing control in the system. Check how prices as well as surcharges and discounts are created. a discount as a fixed amount or as a percentage. surcharge or discount that may arise in your business transactions. for example. changes are not intended to be made by customers.PRICING AND CONDITIONS The Pricing function is a method of determining prices using the condition technique. for example. Page 69 of 95 . For example. You can define a separate condition type for each type of price. If you define a product price or a special discount.

etc. 578 Page 70 of 95 . Specify at what point in time prices are determined (e. for sales promotions.Check whether separate pricing is carried out for individual business transactions.). You can make prices. you define the combination of fields for which you can create condition records Condition Table no. You may levy specific freight surcharges for rush orders. To do this.g. for example. . Afterwards. Also clarify who is responsible for determining prices. You define these dependencies using the condition tables. you define price dependencies. and discounts dependent on almost all the fields in a document. see the following steps.l= define condition table==== create condition table------ Define Condition Tables In this IMG activity. In a condition table.s&d -----basic function=== pricing-----pricing contro. adjust your pricing dependencies to the pricing criteria in the SAP System. surcharges. price increases.

Now generate no. of fields Long key word Select a field clicks on generate then yes Go to local object and generate table Page 71 of 95 .

For example. Path is define access sequence maintain access sequence New entry give access sequence enter then saves Name Code Nokia access sequence NKNK After creating access sequence just do enter a new window will be appear Page 72 of 95 . you can define for a price that the SAP System first searches for a customerspecific price and then for a price list price.Define Access Sequences You define access sequences in this IMG step. The access sequence is a search strategy which the SAP System uses to search for condition records valid for a condition type.

Select whole line and double click on accesses then double click on fields give required entries and save it Finally save it. Page 73 of 95 .

surcharges. freight.Now next step is to define condition type Define Condition Types You define condition types in this step. and are stored in the system in condition records. Price elements are represented in the SAP system byg condition types. You specify an access sequence in every condition type. taxes or. Price elements can be. you define which fields the SAP system checks when searching for a valid condition record. prices. for example. define whether a discount is calculated as a percentage or a fixed amount using the condition type. discounts. The path is Spro img sales and distribution define condition type Maintain condition type Select your own condition type highlight the line and copy it Give your own condition type and access sequence then enter and save basic settings pricing pricing control Condition types Name NKNK Nokia Condition Type Page 74 of 95 . Thus. for example. You can.

the SAP System automatically determines which pricing procedure is valid for a business transaction and it takes the condition types contained in it into account one after the other. The determination of the procedure depends on the following factors: Now select the whole line and double click on control data go to new entry give steps and condition types descriptions and enter then save it Page 75 of 95 . you assign the pricing procedures to the transactions by defining the following dependencies: y y y Customer Sales document type Sales area In the pricing procedure. you define which condition types should be taken into account and in which sequence. In addition.Now define and assign pricing procedure Maintain pricing procedure and go to new entry Define and Assign Pricing Procedures You define the pricing procedures in this step. During pricing.

STEP 10 11 12 CONDITION TYPE NKNK K004 K007 DESCRIPTION Nokia Pricing procedure MATERIAL CUSTOMER DISCOUNT Now define pricing procedure determination Go to new entries Give all the details and then enter and then save¶ Give sales organization Distribution channel Division Page 76 of 95 .

you define the control data for the various document types in sales.Pricing procedure Condition types Nokia pricing procedure Nokia Condition Types SALES DOCUMENT STYLE Sales Documents In the following menu options. The control data refers to: y y y Document types Item categories Schedule line categories You also define the following for the sales documents in the subsequent menu options: y y y y y Possible order reasons Possible reasons for rejection Various blocks Various order types Number ranges Page 77 of 95 .

Noe complete the sales document style Documents are 1 sales order document 2 delivery doc 3 billing doc Quotation Order Rush order Cash sales Inquiry Contract Schedule agreement qt or ro cs in nms ds The path is Img sales and distributions area to sales doc type Double click Then double click on combine sales org then click on position give ales org name then save it sales sales doc sales doc header assign sales Page 78 of 95 .

Reference sales organization NKSL Now double click on combine distribution channel Give sales organization name Reference Distribution Channel Now combine division Make a New entry ND Reference divisions NM Page 79 of 95 .

Assign sales order type permitted to sales area Sales org NKSL NKSL NKSL NKSL NKSL NKSL NKSL Distribution channel ND ND ND ND ND ND ND Division NM NM NM NM NM NM NM Sales order types OR RO IN QT CS NMS DS Description Standard order Rush order Inquiry Quotation Cash sales Quantity Contract Scheduling agreement Page 80 of 95 .

SALES ORDER CYCLE 1. Creation of Inquiry (VA11) ± A new Inquiry is created only when the authorized person at Depot receives an Inquiry from an existing or new Non Trade Customer The path for inquiry Sap easy access T code is VA11 Inquiry type IN The required details to create an inquiry is inquiry type IN logistics sales and distribution sales inquiry Now double click on your material And click on shipping And give storage location Page 81 of 95 . INQUIRY It is a customer request to the company for the quotation for distributing goods and services.

Now click on condition And give conditions Then click on the schedule line and edit on incompletion log save the document if the document is complete Page 82 of 95 .

One inquiry no. Now go to quotation It is an offer to customer for specific area. will be generate Material Inquiry no. The path is Easy access logistics sales and distribution sales quotation Pager 10000135 Or use T code VA21 Give quotation type QT Your sales organization then enter Give sold to party Valid date material and quotation quantity Then double click on your material and follow the same as in inquiry Page 83 of 95 .

Material Quotation no. Parties involved in Order process 1. Delivery date and Quantity. Price information about financial statement of an item. Delivery date and the quantity. Shipping information. Creation of Sales Order with reference to a Quotation (Non-Trade customer) (VA01) ± A Sales Order created when a Purchase Order received from the Customer w/out reference to a Quotation 3. Page 84 of 95 . 2 ORDER Pager 20000138 We need customer material information. ORDER PROCESS y y y y y Customer and material information. 2./ Offer It will generate a quotation no. price information about financial statement of items. Ship to Party: Party who receives the order. Creation of Sales Order for a Trade Customer (VA01) ± A Sales order is created when a purchase order is got from the Trade Customer. Creation of Sales Order for delivery of material from another depot (VA01) ± A delivery from another Depot directly to Customer shall be created on the Decision of the Depot In charge. and shipping information of customer. 2. Bill to Party: Party who receives the invoice. Sold to Party: Party who placed the order. Billing information. 1. 3.

Scheduling agreement 2. Contract Page 85 of 95 . logistics sales and distribution sales order Material Standard order Pager 8347 3 OUTLINE AGREEMENT It can be of two types: 1.4. Pay to Party: Party who pay the bill. The path is Sap easy access T code is VA01 We give order type OR We give all the required things like before as in inquiry and in quotation we will follow the same process It will generate an order no.

Type DS T code VA31 4 CONTRACT Contract is where you have a contract with the vendor. we need to make PO ref the contract asking for the delivery of the material. So every time you need the material. In such instance when PO is ref with contract it¶s called contract release orders or call off orders. It will generate a contract no logistics sales and distribution contract Page 86 of 95 . validity dates material then double click on material then click on shipping give storage location click on condition give condition edit on incompletion log save the doc.The difference between contract and schedule agreement is as follows Contract 1 no schedule 2 validity period 3 doc. may be a for a predetermined quantity or predefined value. The path of contract Easy access T code VA41 Give contract type nms We will give sold to party then Po no. Type NMS 4 t code VA41 Schedule agreement Schedule line Validity period Do.

without release documentation-system will transmit the delivery info to the vendor once you save the document. And when you need some more material then will only create SA deliveries using ME38.Material Quantity contract SCHEDULING AGREEMENT Pager 40000110 Scheduling agreement is a long term purchase agreement. So you can maintain the delivery schedule and communicate the vendor on Forecast basis or JIT basis. The delivery schedule can be on hour/daily/weekly/monthly basis. Forecast zone requirement is to help the vendor to plan his requirements. where you will keep issuing the delivery schedules whenever there is a change in requirement or at predetermined time intervals. SA is also an agreement with the vendor for the supply of material. The delivery dates will be maintained in ME38 ref the SA which are called delivery schedules. SA could be of 2 types:. may be a quantity or value. Page 87 of 95 . firm/tradeoff/Forecast. Firm zone schedules are confirmed requirement and need to be taken by ordered party. But it will contain different zones viz. Tradeoff zone requirement is to purchase the raw materials and ordering party is liable to pay raw material cost. in case of requirement cancellation.

Path is Sap easy access T code is VA31 Give schedule agreement type Sales area. division and distribution channel Then enter and give Sold to party validity material give quantity and enter Double click on material click on shipping give storage location click on condition give condition type then schedule agreement and give delivery date and order quantity then incompletion log and save the doc logistics sales and distribution sales schedule agreement Material Scheduling agreement pager 30000072 Page 88 of 95 .

Delivery Process: 1. The SAP System copies the relevant data from the order (one or many order) to the outbound delivery. Shipping point The path is Sap easy access out bound delivery T code VL01N We have to give shipping point logistics create sales and distribution single document shipping and transportation Page 89 of 95 . Order number 2. Confirmation date 3. We can create one or several outbound deliveries from the order.OUTBOUND DELIVERY We can create an outbound delivery in a shipping point for orders that are due for delivery. We can also combine items from several orders into one outbound delivery.

Information on billing is available at every stage of order processing and delivery processing.Give selection date that will be same as order date Click on picking See the status give pick quantity that will be same as delivery quantity Enter status will be changed Order Delivery number Click on post goods issue 8323 80011344 If there is any error log then go to goods movement data Change the doc. Page 90 of 95 . Issue Debit and Credit memo. Date And enter it will generate anew delivery no Now we do Billing Billing represents the final processing stage for a business transaction in sales and distribution. Invoices based on deliveries and services. This component includes the following functions: y Creation of I. II.

Cancel billing transactions. The [path is] Easy access create T code is VF01 logistics sales and distribution billing billing document Material Billing document Pager 90033120 Page 91 of 95 . Issue rebates. Comprehensive pricing functions. Pro forma invoices.y y y y III. Transfer billing data to Financial Accounting (FI).

SRM. y y For each step. CRM.Findings y y y y y y y Enables you to build repeatable business processes. you can define deadline monitoring Many SAP applications such as ERP. and to automate your processes Allows you to implement complex business processes Takes care that each step of your workflow is assigned to the right person It is tightly linked to Business Object Repository Workflows can be started whenever a predefined event occurs You can use an existing organizational structure to have the relevant users carry out the Individual activities y You can run detailed reports on the workflow process itself. This significantly brings down implementation time. Page 92 of 95 . and others. y y y You can either use them without any changes or do minor changes according to your Company¶s requirements. etc. There is a huge number of existing knowledge on SAP Business Workflow worldwide. such as how often each workflow was executed. and to automate your processes Enables you to build repeatable business processes. what was the average execution time. how long did it take people to react to items in their inbox. deliver predefined workflows.

in case that an approver is determined depending on product group. however it works best and is mainly used to handle business processes within one SAP system. in case of a disapproval..g. to determine the approver according to the product's group) is not supported No flexible jumps supported.. or on an attribute (e.Limitations y the SAP Business Workflow can do external calls. to refer to an HR Organization structure Routing based on an organizational structure (e. e. No record authorization management (check-out) Missing interfaces to ERP. to determine the approver based on an organizational hierarchy).. it is not possible to route to any workflow step (e. the approval step can only return to the previous workflow step) Changing business rules at runtime is not supported (e.g..e..g.. it should be possible to change mapping at run time y y y y y Page 93 of 95 . i.g.g.

If this is set as a goal. but more sales assistants etc. The big question with ERP is whether the benefit of integration and cooperation can make up for the loss in personal efficiency or not. then it might be a successful project. or it falls. Page 94 of 95 . Less reporting or accounting personnel. Integration can be the highest benefit of SAP. then no cost is reduced. 2. 5. to automate inventory posting to G/L. 3. It reduces cost only if the company took accounting and reporting seriously even before implementation and had put a lot of manual effort in it. I think individual efficiency can suffer by implementing ERP. 4. If they didn't care about it. ERP improves the cooperation of users.Conclusion 1. The only real project aim for implementing ERP is reducing data redudancy and redudant data entry. if they just did some simple accounting to fill mandatory statements and if internal reporting did not exists of has not been financially-oriented. What ERP does is makes the lives of inaccurate people or organization a complete hell and maybe forces them to be accurate (which means hiring more people or distributing work better). Page 95 of 95 www.Bibliography Books SAP HR Personnel Administration Websites: y y y y y y y y

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