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Chapter 1

Introduction

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COMPANY PROFILE Headquarter -Pune. Alpha Bricks is a name synonymous with proven methodologies and uncompromised quality. At Alpha Bricks believes solution development is a discipline – combination of Skills, Processes and Attitude and believes that aligning with their Customers and orienting themselves to their needs is the most important step in long term success. Alpha Bricks operates in the areas of web based technologies, mobile technologies and cloud computing. They also have set of Intellectual Property in processes and tools to make your solution building more effective, efficient and high quality. Alpha Bricks specialize in cloud application development and offer specialized solutions around Google and Amazon cloud platforms. They know technology and can deliver it in a cost effective, process driven, scalable manner. Ultimately, we are driven by the value we can add to our customers. We will evaluate the impact we can have on enhancing organizations ability to do something better, more efficient or enable a new process through extensive knowledge base, tools and experience .

It also provides an end-to-end SAP implementation, consulting, training and support. Headquartered in Pune, India, it has global presence in South East Asia, US and the Middle East. It has helped its clients:
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Streamline and automate business processes. Provide visibility and operations transparency to the business. Reduce Cost of software and services. Minimize length of time to initial 'Go Live' and full implementation. Enable high ROI and develop life cycle management. Meet compliance requirements. Connect with customers and suppliers.

With support of industry veterans spanning an experience anywhere between 8 to 25 years on various domains, AlphaBricks has the confidence and enthusiasm to help client reach to the top.

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AlphaBricks DelphiTech Pvt. Ltd. is Joint Venture between AlphaBricks Technologies and Delphi Computech. The company was formed to bring together 14 years of core SAP implementation, consulting and training experience. AlphaBricks DelphiTech provides an end-to-end SAP implementation and training through its proven methodologies and uncompromised quality. Delphi is a name synonymous with IT Education and Consulting in India, Middle East and SEA. It is a leading brand in SAP training across South East Asia and the US. AlphaBricks DelphiTech Pvt. Ltd. has over 10 years in SAP consulting, training and resourcing. Long-term client relations • • • • Entire SAP stacks under one umbrella with a state-of-the-art ABAP factory. Holistic services from one supplier International roll-outs with international teams creating a global community of SAP experts Member of premier trade associations and business groups. Already a trusted name Dedicated in-house Support Team for SAP Customers

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processing. Information technology (IT) refers to the management and use of information using computerbased tools. implementation and management of computer-based information systems. engineering computer hardware. New graduates with degrees in related fields such as electrical engineering and computer science can hope to achieve significant professional growth and a healthy remuneration from companies looking to hire the best talent available. thereby increasing the demand for such jobs. and distributing information.SECTOR PROFILE-INFORMATION TECHNOLOGY Information technology (IT) is defined as the design. Each and every work directly or indirectly relates to computer. networking. to the management and administration of entire systems. communication and entertainment. the industry is now intensely focused on the integration with other technologies such as mobile phones. And if at any stage work breaks down. awareness and utility of technology. database and software design. There are lot many things which are inter-related with IT and the management. Dell and Microsoft. storing. rather than scientific applications. development. The industry is likely to continue growing from strength to strength. With the already high penetration of conventional personal computer and network technology. Today. particularly software applications and computer hardware. 4 . The largest firms globally include IBM. Information Technology is having impact on all trade industries and businesses. The reason why it has considered in importance is due to the improving accessibility. from the executives to middle management and clerks. HP. Now a day’s computer plays a major role in any organization. coupled with the growing convergence of information. it has grown to cover most aspectsof computing and technology. IT professionals perform a variety of duties ranging from data management. automobiles and televisions etc. in service as well as in manufacturing. it would also affect the rest of the work in the hierarchy. given the high proportion that leave to pursue jobs in this sector overseas. Most commonly it is a term used to refer to business applications of computer technology. It is affecting workers at all levels of organizations. It includes acquiring.

T. The IT industry of India has registered huge growth in recent years. However. the Indian software industry grew at double the rate as the US software industry. after the early nineties. many multinational IT companies. have set up their operations in India. Some of the major reasons for the significant growth of the IT industry of India are • • • • • • • • • • • • • • • Abundant availability of skilled manpower Reduced telecommunication and internet costs Reduced import duties on software and hardware products Cost advantages Encouraging government policies Tata Consultancy Services (TCS) Infosys Wipro IBM HP HCL Cognizant Technology Solutions (CTS) Patni Satyam NIIT Some of the major companies in the IT industry of India are – 5 . During the ten year period 1992-2002. including IBM. In the last ten years the Information Technology industry in India has grown at an average annual rate of 30%. INDUSTRY IN INDIA Major players: Information Technology is one of the most important industries in the Indian economy. In 1970. Deregulation policies adopted by the Government of India have led to substantial domestic investment and inflow of foreign capital to this industry. high import duties had forced IBM to leave India.I. The liberalization of the Indian economy in the early nineties has played a major role in the growth of the IT industry of India. India's IT industry grew from 150 million US Dollars in 1990-1991 to a whopping 50 billion UD Dollars in 2006-2007.

T.India's IT industry caters to both domestic and export markets. Exports contribute around 75% of the total revenue of the IT industry in India. The IT industry can be broadly divided into four segments • • • • IT services Software (includes both engineering and Research and Development) ITES-BPO Hardware INDIAN I. INDUSTRY – A SWOT ANALYSIS Strengths • • • • • • • • • • • High Quality & Price Performance Large Pool of Knowledge Workers Flexibility and Adaptability Reliability High Growth Engineering Base Global Research & Development Lack of Package Orientation Lack of Domestic Computerization Lack of Internet Penetration Project Management Skill Weaknesses Opportunities • • • • • Global Market Domestic Demand Outsourcing E-Commerce/E-Business Overseas Listings 6 .

• Threats • • • • • Internet Service Provider (ISP) Policy Government Interference Lack of Speed Infrastructure Cost Protectionism by Export Destinations 7 .

Business objectives etc) 8 . The Technical consultants should pass on their knowledge to the Key Users. The Key User will train the End Users. Risk Management Plan. Realization 4. Project Plan. These are persons within the company who know the business and its processes inside out. this is either done by the Implementing company or client company can send them to SAP training. who will work or should work closely with the implementing Company Project Manager. you must know how to analysis overall environment (Company goals. Preparation Go Live 5. The driving person here is your Company Project Manager. Consultants should setup five phases: 1. such as Project Charter. Change Management plan etc. The Key Users will work closely with the Technical Consultants in designing the company’s Business Process to fit with SAP. Client company should provide so-called "Super Users / Key Users. so they must be also trained in SAP Business Process. there are many things that must be set up prior to Blueprinting. in any case all company persons involved in the Implementation project should be on the project 100 percent. this is part of your Charter and there are many Templates of such documents. landscape. you need more than just the template. Preparation 2. Go Live/Support From the Project Management side. The Implementing Company will supply the Technical/Functional Consultants. As far as a SOW.Scope of work & Objective Project manager from the company. Blueprinting 3.

945 and 101 9 .0 dual core RAM --3 GB 250 GB Hard Disk --- Mother board -.Operating Environment The central instance host must meet the following requirements: Software • Windows server 2003 32 bit with Service pack 2 or Windows Sever 2003 64 bit operating system You should have mother board or Laptop driver CD Adobe Acrobat Reader for Installation Manuals • • Hardware • • • • Processor --.Intel 915 .Intel P4 3.

Chapter 2 Proposed System 10 .

Adaptability must be universal. • Enterprise-Wide Integration: SAP’s enterprise-wide R/3 System solutions meet the needs of constantly changing. and productivity. change is the only facet of your business that will not vary. No other product or suite of products provides the R/3 System’s functional links between processes that multiply the power of each person’s work. and the R/3 System’s flexible structure and extensive integration helps make that easier. • Individual Solutions: System-controlled customizing procedures allow you to create solutions from a wide variety of prepared application variants to satisfy individual requirements. continually evolving businesses. to production planning. promoting data access. • User Friendliness: The R/3 System has a uniform graphical user interface for all application areas. The R/3 System’s application components are fully integrated. • Real-Time Information: The R/3 System’s ability to “drill down” to whatever level of 11 . • Flexible Structure: Whether in a departmental organization or on the warehouse or factory floor. The R/3 System’s full integration pulls your enterprise together. flexibility.SAP has an edge over other ERP packages for the following reasons: • Integration: All work processes within a company or group of companies are linked through data and functions using the R/3 System. • Functionality: The R/3 System offers you a software solution that covers all commercial processes and transactions commonly occurring in a company or group of companies. to sales and distribution. Transaction-related process chains trigger the next activity as needed from engineering to materials management.

Consequently. This structure promotes maximum flexibility. The R/3 System’s flexibility and integration help you form the real-time workflow application links required for concurrent engineering. Tools on various system levels allow you to fine tune all R/3 System functional modules. and minimizing customization. three-tiered architecture. Nine of the top ten Fortune 500 companies use SAP software. SAP developed most of the R/3 System’s functionality in close cooperation with these customers. The R/3 System’s business processes are flexible. and desktop presentation. Once running. pragmatic and well documented. By selecting key portions of the R/3 System for first-time implementation. including the World-Wide Web. The development of the Internet. • Enterprise-wide three-tiered architecture: The R/3 System remains the only enterprise-wide. 12 . the R/3 System provides upto-the-minute. application functionality.detail you need is legendary. Today they form a widely acknowledged standard for Business Process Reengineering (BPR). • Concurrent engineering: Concurrent engineering cuts time-to-market by stacking up business processes whenever functions can take place concurrently rather than consecutively. The R/3 System’s three-tiered client/server architecture separates the system into areas devoted to database. •Mission-Critical Business Processes: SAP has more than 20 years of experience designing sophisticated application software for backbone and mission critical business processes. More than any other product. real-time information wherever and whenever you need it. the R/3 System makes it easy to add more functional pieces. Gradually adding functionality makes core solutions available sooner without sacrificing long-term application. freedom of application component choice and the ability to change and add to the system as your organization grows. at a reasonable cost. promises to make dramatic changes in communications between businesses and customers. it has integrated the best business practices of the world’s most successful companies into the R/3 System. • Lean Implementation: The R/3 System promotes lean implementation through its modular structure. new users bring the full power of the R/3 System to address their business issues with great speed.

Chapter 3 Analysis and Design 13 .

Once the order has been posted. packing and PGI and billing is required to be created. In this type of order OR. The delivery is processed after few days from the date of order creation and an invoice is also printed later: billing is therefore related to the delivery. a delivery is created immediately in the background Header data a cash account. picking.1 Standard order It is the order type in which delivery. When the sales employee creates a standard order. In the standard system. as soon as you save the sales order the delivery is not automatically created. In the standard system. the system automatically proposes the current date as the date for delivery and billing. because the amount in the invoice is posted after printing bill and receiving amount to type LF.3. sales document type BV is saved for delivery. sales document type OR is saved for cash sales with immediate delivery Delivery: 14 . Receivables are created for the customer.

In the standard system. Once the order has been posted. Receivables are not created for the customer. unlike rush and standard orders. In this type of order CS.2 Cash Sales A cash sale is an order type for when the customer orders. 15 . sales document type BV (CS) is saved for cash sales with immediate delivery When the sales employee creates a cash sale. as soon as you save the sales order the delivery is automatically created as same date and billing will also be generated at the same date as soon as you save the delivery document. the system automatically proposes the current date as the date for delivery and billing.Invoice:vf01 3. picks them up. a delivery with type BV is created immediately in the background and the system prints a document that is used as an invoice for the customer. picks up and pays for the goods immediately. The delivery is processed at the same time as when the order is created and a cash invoice is printed immediately: billing is therefore related to the order. BV. In cash sales. you can process an order for when the customer orders the goods. as they are for rush and standard orders because the amount in the invoice is immediately type posted to a cash account. and pays for them immediately.

the customer picks up the goods immediately. In this type of order RO. The delivery document will be created as soon as you save the sales order. or you deliver them on the same day as when the 16 .3 Rush Order: In a rush order transaction. In a rush order. the customer picks up the goods or you deliver the goods on the same day as the order is placed. But you bill the customer later.Cash sales order: va01-ZCS Delivery: Invoice: 3.

in collective processing). In the standard system. Billing the rush order takes place as normal.order was created. When you save the rush order. invoice papers are printed and sent to the customer. the goods are picked. sales document type RO is saved for rush orders with immediate delivery type LF. Once the billing documents are created (for example. and goods issue is posted. after the delivery. Rush order:-ZR01 Delivery: Invoice: 17 . Once the goods have been removed from storage. a delivery is automatically created in the standard system.

Returns order: ZRE1 18 . Standard return order type is RE. This delivery type is configured in return order type RE. Sales department creates return order using transaction VA01. After the return delivery document has been created. The return order can be created with reference to sales order or billing document. Below picture shows their relationship. Logistics department can post the document and receive the return goods to the warehouse. customer wants to initiate the return process.3. In this case. Sales department creates return delivery document using transaction VL01N. Customer may be not satisfied with the delivered goods or the deliverable is not what customer exactly wants. It can be copied out and adapted according to custom requirement. The standard return delivery document has delivery type LR.4 Return order Return process is a common process in SD.

Returns delivery: Return Invoice: 19 .

Chapter 4 User Manual 20 .

SAP Sales and Distribution Helps to optimize all the tasks and activities carried out in sales. It includes the following information and processes: • order Customer Master and Material Master data 21 . delivery and billing. SAP SD application components fulfills many of the international requirements that supports the sales and distribution activities with functions such as pricing and conditions. and transactions to complete the Order to Cash process. sales processing. Key elements are : pre-sales support. billing. system configuration. quotation processing. billing and sales information system. delivery processing. delivery monitoring. customer order processing. credit and risk management The Sales and Distribution (SAP SD) consists of all master data. inquiry processing.

Material Management (MM). including Sales Order (SO) creation. Billing. Order to Cash business process associated with the SAP SD module: 22 . including Inquiry and Quotation creation. including Outbound Delivery document creation.• • • • • Sales Orders Deliveries Pricing Billing Credit Management Sales & Distribution (SD) is one of the core and most-used modules of SAP R/3 products beside Financial & Controlling (FICO). Sales Order processing. The main areas covered by SD module are: • • • • Pre-sales activities. and Production Planning (PP) modules. Shipping. including Billing document and invoice creation.

Subcomponents of the SAP Sales and Distribution (SAP SD) Module: • • • • Master Data Sales Support Pendulum List Indirect Sales Sales 23 .

suppliers. master data can support transactional processes and operations. non-transactional data that defines a business entity for which there is. Master data is often used by several functional groups and stored in different data systems across an organization and may or may not be referenced centrally. products. is information that is key to the operation of business and is the primary focus of the Information Technology (IT) discipline of Master Data Management (MDM). the possibility exists for duplicate and/or inaccurate master data. etc. materials. Pricing at Sales Organization Level  Sales Organization Assigned to a Company Code where Sales Revenue is Recognized (Links SD & FI) 24 . employees. This key business information may include data about customers. but its use is certainly not limited to such (analytics/reporting is another area greatly dependent on an organization's master data). Master Data: Master data.• • • • • • Shipping and Transportation Billing Empties Management Credit Management Foreign Trade/Customs Sales Information System This is brief review of the components and processes associated with the SAP SD module. Thus Master Data is that persistent. In this regard. which often turns out to be non-transactional in nature. or should be. which may include reference data. therefore. an agreed upon view across the organization TERMINOLOGIES: SALES ORGANIZATION:  A representation of a selling unit responsible for product liability and other claims made by customers  Each business transaction is processed within a sales organization  Master Data Maintenance for Customers.

including partial deliveries. and ship-from location may differ between each channel • Each Sales Order travels through one Distribution Channel Distribution Channel assigned to a Sales Organization (I.e. or Services o Assign each product line to a particular division • Define customer-specific agreements for each division. or direct sale) • Relevant Master Data such as price.e. wholesale. pricing. retail. minimum order qty. Plants Assigned to a Sales Organization DISTRIBUTION CHANNEL: • Used to define how different products reach consumers (I. and payment terms SALES AREA: • Sales Area is a Combination of: o Sales Organization o Distribution Channel o Division • All customer data relevant for sales is defined according to the sales area (I. can specify for each customer how pricing is done in each sales area) • Links the Order Entry System(SD) to the Financial/Managerial System(FI/CO) 25 . direct sale for Merchandise items) • DIVISION: • A way of Grouping Materials.e. Products.

Sales group: • Sales groups are assigned to sales offices. A sales office can be assigned to more than one sales area. Sales office: • • • • • .Plant and Storage Locations • • • • Company’s productions locations and branch offices are represented by Plants. If you enter a sales order for a sales office within a particular sales area. Employees of a sales office can be assigned to sales groups defined for each division or distribution channel. Geographical aspects of the organizational structures in business development and sales are defined using sales offices. the sales office must be permitted for that sales area. INFORMATION ON SALES PROCESS: 26 . One Company code may contain several Plants. A plant may consist of several physical Storage Locations. A sales office can be viewed as an actual office or perhaps a territory or region. The plant is the location at which goods are manufactured or a service is performed. Salesperson: • • A sales group consists of a certain number of salespersons. Sales offices are assigned to sales areas. A salesperson is assigned to a sales office and group in the sales employee master record. Thereafter you can select this personnel master record in the partner screen of a sales document.

A/R invoice After you have delivered the goods or provided services. creating purchase orders and scheduling resources. It does not result in any posting that alters quantities or values in inventory management or accounting.Sales quotation Before ordering. The document is important for planning production. Sales order The sales order is a commitment from a customer or lead to buy a product or service. you request payment from your customer and record the revenue in the profit and loss statement. customers often require a sales quotation for review in their company. 27 . Delivery You create a delivery note to indicate that the goods have been shipped. You create it as a proposal of your goods and services to a customer or lead. With this document. you bill the customer using an A/R invoice.

quotations. Two Main documents in Pre-sales Activity Inquiries: customer’s requests for non-binding sales information. inquiries. mailing campaigns. The status becomes completely references in a standard system when the full quantity is used. legally binding throughout the specified validity period. The Enquiry and the quotation leads to a sales order. Quotation: offers to customer for delivering materials or providing services. tracking competitors and their products. tracking prospective. The status becomes completely references in a standard system when at least a partial quantity is used.Pre-sales Activity: The pre sales activity includes Establishing and maintaining customer relationships. Examples: entering and tracking customer contacts. 28 . answering customer telephone queries.

TRANSCTIONAL CODES IN SAP SD: SD Master Records: Business Partners XD01/VD01 Create Customer Master Centrally 29 .

XD02/VD02 Change Customer Master Centrally XD04/VD04 Display Changes to the Customer Master Centrally V-07/VD01 Create One-Time Customer (Sales) V-08/VD01 Create Payer (Centrally) V-09/VD01 Create Ordering Party (Centrally) Conditions VK11 Create Condition VK12 Change Condition VK14 Create Condition with Reference SD Sales Process Sales Inquiry VA11 Create Inquiry VA12 Change Inquiry VA15 List of Inquiries Sales Quotation VA21 Create Quotation VA22 Change Quotation VA25 List of Quotations SDQ3 Completed Quotations V.04 Display Incomplete Quotations Scheduling Agreement VA31 Create Scheduling Agreement VA32 Change Scheduling Agreement VA35 List of Scheduling Agreements V.06 Display Incomplete Contracts SDV1 Display Expiring Contracts 30 .05 Display Incomplete Scheduling Agreements Contracts VA41 Create a Contract VA42 Change a Contract VA45 List of Contracts V.

02 Display Incomplete Sales Orders (Sales Order Error Log) V.14 Display Blocked Orders SDO1 Display a List of Orders Within Time Period Debit Memo Request Processing VA01 Create a Debit Memo Request VA02 Change a Debit Memo Request VA05 List of Debit Memo Requests V.SDV2 Display Expired Contracts SDV3 Display Completed Contracts Sales Order VA01 Create a Sales Order VA02 Change a Sales Order VA05 List of Sales Orders V.14 Display Blocked Debit Memo Requests SDO1 Display a List of Orders Within Time Period Credit Memo Request Processing VA01 Create a Credit Memo Request VA02 Change a Credit Memo Request VA05 List of Credit Memo Requests V.14 Display Blocked Credit Memo Requests SDO1 Display a List of Orders Within Time Period Returns VA01 Returns Order VL01N Returns Delivery VF01 Credit for Returns Shipping and Transportation Delivery VL01N Create Delivery VL02N Change Outbound Delivery VL22 Display Delivery Change Documents VL71 Output from Deliveries VL10A Process Delivery Due List 31 .

Outbound Deliveries for Picking Post Goods Issue VL06G Deliveries for Goods Issue VL09 Cancel Goods Issue for Delivery Note VL23 Goods Issue (Background) SD Billing VF01 Create Billing Document VF02 Change Billing Document VF04 Process Billing Due List VF05 List Billing Documents VFX3 Release Billing Documents VF31 Output from Billing VF11 Cancel Billing Document 32 .Picking VL06O Sel.

33 . The rule of thumb in determining SAP enterprise structure is to try to create as simple as it can. SAP provides the tools needed to improve your company’s value.Chapter 5 Conclusion SAP enables to positively transform a Company so that the maximum potential of the business can be reached.

ANNEXURE Document Flow:standard order 34 . SAP has helps a company to increase its revenue by having more efficiency and productivity in the external as well as internal processes with automation of work.Due to implementation of SAP .all the data is been integrated and is been available at a single point from where it can be accessed and used for decision making by the top level management for making strategic decision. which used to take a longer time with the older system. It brings in more transparency and accuracy in the work of the employees with reduction of errors that used to takes place with the manual system or the older legacy system.

Document Flow: cash sales order Document Flow: Rush order 35 .

Document Flow: Return Order Bibliography 36 .

sap. www.com 37 .com.saptechies.com.alphabrick. www.sap.com www.• • • • http://scn.