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Sales & Distribution

Sales & Distribution (SD) module deals with the Sales & Distribution activities of an organisation. It has strong integration with Materials Management (MM) & Finance & Accounts (FI). To form an SD transaction there must have - i) Customer, ii) Materials, & iii) Price. These are called Master data. So the appropriate of value of these elements leads the correctness of SD documents Sales Order, Delivery & Invoice. Let have brief scenario how each elements can affect the quality of SD documents. a) Customer: Customer created with wrong sales area results wrong reporting of sales, wrong account assignment group & reconciliation account results wrong account posting or error in posting. Wrong payment terms results wrong due & overdue analysis. Materials: Materials created or extended with wrong valuation class results wrong account posting. Materials created with wrong tax classification results wrong pricing. Pricing: Doing wrong pricing results wrong amount of sales proceeds.

b) c)

Three major activities or process of Sales & Distribution are: 1) Sales Order & SD Stock transfer Order 2) Delivery against the Sales Order /Transfer Order 3) Invoicing against the Delivery.

Sales order & SD STO (Stock transfer order) are the key activity. Delivery & Invoice follow the sales order & STO. Quantity of delivery and Price & payment terms to be copied from Sales Order & STO. So before starting with the Sales Order process we will take a look in to the followings which would be helpful for user to understand the SD configuration and to select the appropriate value at time of execution of process: 1) 2) 3) 4) 5) 6) 7) SD organisational structure; Sales Order type; SD STO Order type; Pricing elements; Plant; Storage location; & SD Transaction Code (T. Code)

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1) SD Organisational Structure:
a) Sales Organisation:
A Sales Organization is an organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions. The Sales Organization must be specified in all the SD Documents. The following sales organizations are available in the system:

Company code 1000 2000 3000

Sales Org. code 1100 2100 3100

Description IPL Sales Organization IVL Sales Organization IAHL Sales Organization

b) Distribution Channels: A Distribution Channel represents the channel through which materials or services reach to customers. Incepta distribution channels include Depots Sales, Institutional sales, Export Sales & Others. The following distribution channels are available in the system:
Dist. Channel code 10 20 30 40 50 60 70 90 99 Description Depot Sales Institutional Sales Export Sales PMS Toll Manufacturing Other Sales Services(Rental) Inter Company Sales Intra Company Sales Remarks

The same distribution channels have been used for company code 1000, 2000 & 3000.

c) Division
A division can be defined as a Product group that could be made up of a wide-ranging spectrum of products. This entity normally groups together saleable materials and services for the purpose of responsibility and analysis.
Division 10 20 30 40 Description General Hormones Vaccine Animal Health

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50 60

Medicare Other Sales

d) Sales Office
A sales office can be viewed as an actual office or perhaps a territory or region. Sales offices are assigned to sales areas. Incepta sales team has been structured on the basis of major sales channel.
Sln 1 2 Office 0001 0002 Description Export sales office Institutional sales office

e) Sales Group Incepta sales groups are divided within the sales team as under:

Sales Office Export 0001 Export 0001 Export 0001 Institution 0002. Institution 0002.

Sales Group Exports Group1 A01 Exports Group2 A02 Exports Group3 A03 Institution Sales 1 -B01 Institution Sales 2-B02

Presently this group represents Mr. Ehsan Mr. Arefin Mr. Mahbub Mr. Saiful Mr. Mahbub

f) Sales Area
Generally a sales area can be defined as a combination of Sales organization, distribution channel and Division for which each transaction is carried out. Sales office and sales group are also part of sales area, if they are maintained. For example: Sales area for depot sales = Sales org + Dist Channel + Division. Sales area for export = Sales org + Dist Channel + Division+ Sales Office + Sales group. Sales area data has to be entered at the time of creation of customer and any type sales order. Pictorial Depiction of SD Organization Structure is appended in next page.

g) Shipping Point
A Shipping Point can be defined as a physical location from where materials are shipped for delivery. All SD deliveries from the respective plants shall originate from the respective shipping points. In Incepta SD codification, each plant has been defined as each shipping point. So, plant code & shipping point code is same. For example, If Plant code is 1100 then shipping point # 1100.

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Pictorial Depiction of SD Organization Structure:

Controlling Area

Company Code 1000 IPL

Company Code 2000 IVL


Company Code 3000 IAHL

Sales Org 1100

Sales Org 2100

Sales Org 3100

Distribution Channel 10 Depots Distribution Channel 40 PMS Distribution Channel 70 Services

Distribution Channel 20 Institutional Distribution Channel 50 Toll Mng Distribution Channel 90 Inter Company

Distribution Channel 30 Exports Distribution Channel 60 Others Distribution Channel 10 Intra Company

Division 10 General Pharma

Division 20 Hormones

Division 30 Vaccine

Division 40 Animal Health

Division 50 Medicare

Division 60 Other Sales

Sales Org 1100

Distribution Channel 10 Depots


= Sales Area

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2) Sales Order type:

a) Depot Sales Orders:
Order type ZBV Description Depot Cash sale order Features Depot sales order (Ch#10); Designed for interface use. Only at plant # 7110-18/7210-18 Depot return sales (Ch#10); Designed for interface use. Only at plant 7110-18/7210-18


Dept Re interface

b) Institutional sales orders:

Order type ZINS ZIN1 Description Institutional Sales Institutional Sales1 Features Institutional sales order; Only at plant # 7150/7250 (ISD) Institutional sales order (Ch#20); Only at plant # 1100/2100 (FWH); VAT posting in background; Final price ZAGT + ZVAT; This order should not be used any more. Institutional sales order (Ch#20); Only at plant # 1100/2100 (FWH) VAT posting in background. Final price ZIP/ZVSP Institutional Return Sales order without reference to any bill (Ch#20); Recommended only at plant # 7150/7250 (ISD) Institutional Return Sales order with reference to any bill (Ch#20); Recommended only at plant # 7150/7250 (ISD) Return order to make subsequently Replacement order (ZSD) Applicable to Ch# 20 & Plant # 7150/7250 Replacement Sales order (Ch#20);


Institutional Sales2




Returns- ( W/ Ref)


Ret for Replacement Replacement Order

c) Export Sales order:

Order type ZEX1 ZREX Description Export Sales Intrans Export Sales Returns Features Export sales order (Ch# 30); COGS will be in transit. Export Return Sales order (Ch# 30); This order not yet has been examined.

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Export Sales

Export Sales order (Ch# 30); COGS will not be in transit; Presently this order is in blocked.

d) Debit memo /Credit memo:

Order type ZDR Description Debit Memo Request Features Order requesting Debit a customer with reference of any bill If customer has been charged with less amount for any materials; Can be used for channel # 20 & 30. Order requesting Credit a customer with reference of any bill If customer has been charged with more amount for any materials; Can be used for channel # 20 & 30.


Credit Memo Request

e) Others Sales order:

Order type ZOTH ZBLK ZTOL ZQT ZIN ZLP ZOR1 Description Other Sales Bulk Sales Toll Manufacturing Export Quotation Export Inquiry Scheduling Agreement Intercompany Sales Features Other sales order to sell raw/pack materials (Ch#60); Only at plant # 1100/2100 (FWH). Bulk materials sales order (Ch#60); Only at plant # 1100/2100 Toll Mfg. sales order (Ch#50) Export sales quotation (Ch#30); Export inquiry (Ch#30). Create scheduling agreement (Ch#20). Intercompany sales order (Ch#90)

3) SD STO order type:

Sln. 01 02 03 04 Order UB1 ZUB1 ZUB2 ZUBR ZUB3 ZUB4 05 ZUDR Order description
STO with SD delivery STO SD Del (CWH) STO SD depo to depo STO-SD Del (C ) Rtn. STO-SD Rtn.(VAT) STO-Dam & Expiry STO SD Return to CWH

From plant 1100(FWH) 7100(CWH) One Depot 7100(CWH)/7150(ISD)/ 1000 (PMS)

To plant
7100(CWH)/ 7150(ISD)/ 1000 (PMS) All depots/ 7150(ISD)/ 1000 (PMS) Another Depots 1100 (FWH) Only for Repacking product and Damage product) 1100 (FWH) Only for Re-vat product 1100 (FWH) Only for Damage and Expire product 7100(CWH)

All depots/ 7150(ISD)/ 1000 (PMS)

The above order types are also applicable for all the plants under company code 1000, 2000 & 3000. For example, when it is FWH it represents plant # 1100,1200,1300,2100 &3100.

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4) Pricing procedures:
Pricing procedures is the method of pricing. It is linked with sales order type. When user select a particular order type systems link the procedures and enable the user to select the pricing elements under that procedures. Each pricing procedures has been explained below:
a) Depot sales (Channel # 10) : Description Trade Price Depot VAT Trade Discount Volume Discount Status FI FI FI FI Use Per unit Trade price Per unit VAT amount Per unit trade discount Per unit volume discount Remarks


b) Institutional sales (Channel # 20) Condition ZITP ZVSP Description Gross Price - Inst VAT Special Approved Status Stat Stat Use Agreed price + applicable VAT on VAP per unit Agreed price + applicable VAT on specially approved VAP per unit Commission payable amount at per unit Remarks




c) Export sales (Channel # 30) In export only some conditions are applicable only at header level. User has to put gross value against the sales order then systems allocate that value to all line items on the basis of line items total price. Description Condition ZFOB ZCIF ZIFS ZF00 ZIFH ZIN1 ZF01 FOB Price Cost Insurence Frigh Insurence & Fright Fright Condition Insu & Freight Head Insurance Header Frieght Header Status FI FI FI FI FI FI FI Use Per unit FOB price Per unit CIF price Per unit Insurance & Freight Per unit Freight Gross Insurance & Freight amount Gross Insurance amount Gross freight amount Remarks

Header Header Header

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Insurence VAT Special Approved

FI Stat


VAT Price


Per unit Insurance Per unit VAP, free goods is there Value is 15%

d) Debit Memo/ Credit memo (Channel # 20 & 30) Condition ZDRP ZCRP ZWSF Description Debit Price Credit Price VAT Price(fixed amt) Status FI FI FI Use Fixed debit amount for that line item Fixed Credit amount for that line item Fixed debit or credit vat amount Remarks

e) Toll sales (Channel # 50) Condition ZCHG ZVSP Description Conversion Charges VAT Special Approved Status FI Stat Use Per unit Conversion charge Per unit specially approved VAP Value is 15% Remarks


Output Tax



Other sales process (Channel # 60) Description Agreed price VAT Special Approved Status FI Stat Use Per unit agreed price Per unit specially approved VAP/ or VAP Value is 15% Remarks

Condition ZAGT ZVSP


Output Tax


5) Plants :
Plant is an operational unit within a company code. Plant is an organizational unit that structures the enterprise from the production, procurement, distribution and Stock Storage Area. Example: Production facility, Depot, & Trading Office where material movements are tracked and inventory valuations are monitored. At the time of creation of sales order & SD stock transfer order, user has to select the supplying plants. Each order types are linked with plants and each plant has some special feature regarding regulatory affairs. For example, at the time of delivery from manufacturing plants issuer has to accompany the Mushak-11 along with delivery challan.

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a) Manufacturing Plants: Sln. 01 02 03 04 05 Co.Code 1000 1000 1000 2000 3000 Plant# 1100 1200 1300 2100 3100 Plant description Incepta Pharma Ltd(Gen Div-1) Incepta Pharma Ltd(Gen Div-2) Incepta Pharma Ltd (Hor Div) Incepta Specialties Pharma Ltd Incepta Animal Health Ltd Location Savar Savar Dhamrai Savar Dhamrai

b) Head Office Plants

Sln. 01 02 03

Co.Code 1000 2000 3000

Plant# 1000 2000 3000

Plant description HO,Incepta Pharma Ltd HO,Incepta Specialities Ph Ltd HO,Incepta Animal Health Ltd

Location Dhaka Dhaka Dhaka


Depots Plants

Sln. 01 02-18 19 01 02-18 19 01 02-18 19

Co.Code 1000 1000 1000 2000 2000 2000 3000 3000 3000

Plant# 7100 7101 to 7118 7150 7200 7201 to 7218 7250 7300 7301 to 7318 7350

Plant description CWH ,IPL Dhaka Depot,IPL Institutional Sale Depot ,IPL CWH ,IPL Dhaka Depot, IVL

Location Central Ware House Dhaka All depots Dhaka Central Ware House Dhaka All depots

Institutional Sale Depot ,IVL CWH ,IAHL All depot, IAHL

Dhaka Central Ware House Dhaka All depots

Institutional Sale Depot ,IAHL


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6) Storage Locations:
Each plant is divided into some storage locations. Each type of storage location is specified for some specific materials. For example, FG01 is of Commercial Finished goods & FG03 is of Institutional FG . Storage location is linked with sales order or SD stock transfer order. Whenever user creates sales order, systems carry out the availability check to that particular storage location. However, in some cases user can select the storage at the order, then systems only carry out the availability check to that particular storage location.

Plant# 1000 1000 1100 1100 1100 1100 1100 1100 7100 7100 7100 7100 7100 7100 7101 7101 7150 7150

Storage location PMS1 PMS2 FG01 FG02 FG03 FG04 TR01 FG01 FG01 FG02 FG04 RJ03 PMS1 PMS2 FG01 FG02 FG03 RJ03

Description PMS Mat(Dom) PMS Mat(Exp) FG Commercial FG Phy Samples FG Institutional FG Export Traded goods FG Commercial FG Commercial FG Phy Samples FG Export Rej mat Finished PMS Mat(Dom) PMS Mat(Exp) FG Commercial FG Phy Samples FG Institutional Rej mat Finished

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7) SD Transaction Code (T Code):

a) Customer master: T. Code VD01 VD02 VD03 VD04 VD05 VD06 VD51 VD52 VD53 VD54 VD59 Description Create Customer (Sales) Change Customer (Sales) Display Customer (Sales) Customer Changes (SD) Block customer (sales) Mark customer for deletion (sales) Maintain Customer-Material Info Maintain Cust-Mat.Info w/Select.Scrn Display Customer-Material Info Display Customer-Material Info List Customer-Material-Info Remarks

b) Condition master: T. Code VK11 VK12 VK13 VV11 VV12 VV13 VV21 VV22 VV23 VV31 VV32 VV33 Description Create Condition Change Condition Display Condition Create Output: Sales Change output: Sales Display Output: Sales Create Output: Shipping Change Output: Shipping Display Output: Shipping Create Output : Billing Change Output: Billing Display Output: Billing Remarks

c) T. Code V.03 VA11 VA12 VA13 VA15 VA15N

Inquiry Description List of Incomplete Inquiries Create Inquiry Change Inquiry Display Inquiry Inquiries List N Inquiries List Remarks

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d) Quotation T. Code VA21 VA22 VA23 VA25 VA25N VA26 Description Create Quotation Change Quotation Display Quotation Quotations List N List of Quotations Collective Processing for Quotations Remarks

e) Sales Order T. Code V.02 V.14 VA01 VA02 VA03 VA05 VA05N VA14L f) T. Code VL01N VL01N VL02N VL03 VL03N VL04 VL06 VL06C VL06D VL06F VL06G VL06I VL06I VL06O VL09 Description List of Incomplete Sales Orders Sales Orders Blocked for Delivery Create Sales Order Change Sales Order Display Sales Order List of Sales Orders N List of Sales Orders L Sales Documents Blocked for Delivery Delivery Description N Create Outbound Dlv. with Order Ref. NO Create Outbound Dlv. w/o Order Ref. N Change Outbound Delivery Display Outbound Delivery N Display Outbound Delivery Process Delivery Due List Delivery Monitor C List Outbound Dlvs for Confirmation D Outbound Deliveries for Distribution F General Delivery List - Outb. Deliv. G List of Oubound Dlvs for Goods Issue I Inbound Delivery Monitor IC Confirmation of Putaway Inb. Deliv. O Outbound Delivery Monitor Cancel Goods Issue for Delivery Note Remarks Remarks

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VL10A VL10B VL22 VL22N VL23 VL23N VL31 VL31N VL32 VL32N VL33

A Sales Orders Due for Delivery B Purchase Orders Due for Delivery Display Delivery Change Documents N Display Delivery Change Documents Goods Issue (Background Processing) N Goods Issue (Background Processing) Create Inbound Delivery N Create Inbound Delivery Change Inbound Delivery N Change Inbound Delivery Display Inbound Delivery

g) Invoice: T. Code VF01 VF02 VF03 VF04 VF05 VF05N VF11 VF21 VF22 VF23 Description Create Billing Document Change Billing Document Display Billing Document Maintain Billing Due List List Billing Documents N List of Billing Documents Cancel Billing Document Create Invoice List Change invoice list Display Invoice List Remarks

h) Credit management: T. Code VKM1 VKM2 VKM3 VKM4 VKM5 Description Blocked SD Documents Released SD Documents Sales Document SD Documents Delivery Remarks

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