SAP Rollout & SD Module

Configuration Tips
20/02/2009

Retail & Distribution ISU/ BOSE Corporation

Radhamohan Ramisetty
Radhamohan.R@tcs.com

Author is TCS SAP SD Module Consultant in Retail & Distribution ISU, currently
deputed to TCS US on BOSE Corporation SAP project since July 2007.

He has worked on SAP rollout projects for countries - Australia, China, Hong Kong,
Taiwan,India and currently involved in BOSE Japan country Rollout. Prior to this, he
has worked on SAP Implementation and support project for Eimskip client - Iceland,
UK and Netherlands.

Before Eimskip, he was project lead of Cadbury Schweppes F&B Australia support
pack implementation project in TCS Mumbai.

Any questions & concerns on this document can be sent at my email id

Radhamohan.R@tcs.com
Contents

1) Objective

2) What is Rollout?

3) Key challenges

4) Key points

5) SAP Configuration on core areas

6) Hints, Tips and Important points

TCS Public
Objective

Purpose of this document is giving an understanding of SAP Rollout, Key challenges

etc. In addition, this document covers some Hints & Tips in Sales & Distribution
module (SD) configuration for Rollout purpose.
This document is not intended to discuss all SD Module configuration steps and
focus is only on core SAP SD steps with respect to Rollouts in Regional countries
and all SD areas might not covered.

What is Rollout?

SAP Rollout is a process of rolling out the Global template business processes
across the geographies. It is like configuring SAP in Regional countries of an
organization which has spread & operates from across several countries in the world.

Rollout in other Regional countries is usually SAP Configuration through following the
Global business blueprint using Global template Roadmap. SAP Rollout aims at
aligning the Global standardized business with local processes.

A Global template is actually developed during SAP implementation at the main base
location of country or at their head quarters of an organization.

TCS Public
Key challenges:

Alignment of Global business template with Local/ Regional countries

business requirements
Non-uniformity in business processes among several countries for same
organization
Cultural, Language, Time zones and Communication differences
Different Legal, Audit, Government and Statutory compliances
Local Reports & FORMS requirements
New Functionality
Different Pricing & Tax structure
Technical Infrastructure
Acceptance by Local teams
Existing Interfaces & Software in use by Local countries
Harmonizing Customer & Vendor Master data

TCS Public
Key points:

Global business template is helpful to understand existing SAP business

processes in the organization
Global business team & SAP core team interacts with Local (Regional
countries) business & local SAP team during workshops & meetings to
explain Global business process and to collect Local requirements
Gaps & additional requirements will be identified which leads Gap documents
creation
Gap documents will be reviewed by Core teams to analyze & assess local
requirements
Process wise Global template extension documents can be prepared to
document the existing solution in Global template and TO BE changes for
local requirements
FRICE is the key process for documenting Technical requirements
F Forms New FORMS
R Reports New Reports
I Interfaces ALEs/ Idocs / XML files
C Conversion BDCs & LSMWs etc.
E Enhancements User-exits / BADIs

Configuration Document has to be prepared on all SAP Configuration

changes done for local countries. This document will explain step by step
configuration changes.
SAP Solution Manager can be used to upload all documents and monitor the
progress and project plan
Documentation
Knowledge transfer

TCS Public
SD Configuration tips:
Here, configuration is already done for base country and we will discuss some touch
points for Rollout.

1) Sales Organization:
Regional countries will have to be defined as new Company codes in SAP. In each
country, at least one new Sales organization to be created with reference to existing
Sales organization

This new Sales org. is to be assigned to respective company code from Assignment

2) Distribution channel & Division:

If Common DC & other required DCs are already exist / used in Global template, no
need to configure in Local countries, unless new required by local countries.

If Common Divisions & other required are already exist / used in Global template, we
dont need to create new divisions for local countries, unless specific requirement.

Important: Existing DCs & Division from Global template need to be assigned to
new Sales org. defined for local country

TCS Public
3) Setup Sales area:

Sales area need to be setup for local countries for each combination of local country
Sales org DC Division (NewXX10/10/00)

4) Sales office & Sales group:

Global template Sales offices can be used for local countries and mostly no need to
create new Sales offices, unless specific local requirements

But, Sales groups are most specific to local requirements and have to be defined
using the Global template and naming convention to be followed country specific.

Naming Convention Hint: During SAP Rollout project Global template preparation,
certain guidelines are formed or will be used for Naming convention in different
countries. Consultants need to follow the proper naming convention as per specific
guidelines for uniformity.

TCS Public
New Sales offices to be assigned to Sales area & Sales groups to be assigned to
Sales office

5) Shipping points:

We have to define new Shipping points for local countries based on defined new
Plants in SAP. Shipping points are we have to identify shipping point requirements
from local country business core team. SD Consultant need to interact with MM
Module consultant to understand new plants defined for local countries.

Shipping points are generally country specific and based on physical location from
they (local countries) ship from. These new shipping points to be based on new
Plants defined for local countries (Plants are generally defined by MM consultants)

Client specific Naming convention be followed

Loading point & Transportation Planning points are optional, based on Global
template design

6) Assign new Shipping points (of Local countries) to new Plants created for
local countries:

TCS Public
7) Assign Plant to Sales org Distribution channel:

Once new Sales org & Plants are defined in SAP for local countries, we have to
assign Sales org & Distribution channel combination to new Plants

Tip: Here, we have to assign new Sales org unit (XX10) to new plants of that local
country. Sometimes, local countries ship goods from plants from other country or
other Sales org unit. While, we assign plants to Sales org & DC, we need to consider
the requirement.

8) Assign Sales area to Credit control area:

Before this, we need to define Credit control area, which is a very simple step. This is
to be defined same as Global template.
A credit control area looks like this:

9) Master data Define Common Distribution Channels

If Global process template supports using Common Distribution channels, we need to

define the same for all Regional countries sales org. units to minimize cost of
creating and maintaining master data.

TCS Public
10) Define Customer group fields (Maintain Reserve fields in
Customer master):

We may need to maintain additional fields in customer master for any

Financial Reporting purpose in Regional countries. These are the Reserve
fields in the customer master record, which are not used in the standard
system and will be used based on local requirements.

11) Define & Assign new Sales order types:

Regional countries may have new Sales document types other than from
Global business template like Cash order, Rush order etc. These new
document types can be defined through Sales document Header

In the same sequence, we can define number ranges, order reason etc.

12) Assign Sales area to Sales document types:

This is important, to define whether all sales document types of Global

template are required to be used for all Regional countries.

TCS Public
 Once we complete Combine steps, we have to Assign Sales order types
permitted for Sales areas:

In this table, we need to assign only sales document types relevant for each
country Sales org.

Tip: This is to avoid unnecessary use or access of all Global process sales
order types for different local countries. If US10 defines multiple document
types, each country may require some or all of them.

13) Define Delivery document types:

Existing Global template Delivery types can be used. No need to perform any
configuration settings, unless new document types required. New Delivery
document types only are defined, if required for any local countries Delivery
process.

New Delivery types creation leads to creation of - Delivery Item categories,

Number Ranges, Define split criteria etc. in the same sequence.

14) Define Billing document types:

Global template Billing document types can be used for local countries,
unless specific new document types required for new document types. We
dont need to perform any configuration settings.

Define number ranges for new Billing document types, Copy control settings,
Blocking reasons follows based on local requirements

Hint: There are some country specific settings to be done for Argentina,
Brazil, Italy, Switzerland etc. Consultants need to consider these settings for
Rollouts in these countries.

TCS Public
 Payment card: If any additional Payment cards types from local countries, to
be defined, if Global template design not covered. Standard SAP system
contains 3 card types AMEX, VISA and MASTER Card.

Rebate processing: If Global process template uses Rebate process, it is to

be activated for Regional countries Sales org. units through Activate Rebate
processing. New G/L accounts to be defined for Rebate processing in local
countries.

15) Credit Management:

We have to do some settings here

a) Assign new sales & new delivery documents of local
countries to Credit groups
b) Define Automatic credit control settings for local countries
Credit control areas (Define CCA is explained above step
no.8)

Define number ranges for new Billing document types, Copy control settings,
Blocking reasons follows based on local requirements

Hint: There are some country specific settings to be done for Argentina,
Brazil, Italy, Switzerland etc. Consultants need to consider these settings for
Rollouts in these countries.

16) Shipping conditions:

We will need to create new shipping conditions & Loading groups for local
countries after analyzing their shipping strategy for delivery of goods to the
customer

TCS Public
 New sales document types to be assigned with shipping conditions

Important: It is very important to do Shipping point Determination

configuration settings for Local countries through Assign Shipping Points
step:

Here, we have to assign entries with combination of shipping conditions,

loading group, Plant, Proposed shipping point and Manual shipping point
(optional).

17) Routes:

Routes & Route Determination is another important area, which is mostly country
specific and we needed to do several config settings.

Here, touch points are everything right from Defining Routes, Route
Determination and Route schedule Determination. Consider carriers,
Transportation groups, Transportation zones, Weight groups, Calendar, shipping
conditions, Transit times, Shipping process in local countries.

Hint: We need to use Route determination Load program to load entries into SAP
system. Due to the huge volume of these entries, it is necessary to use Load
program.

18) Output Determination:

Outputs are another most important area, as we need to create new output types
for Regional countries, even though we have those outputs available in Global
business template.

Example: Global business template may have several output types for Sales,
Shipping, Billing areas. But, still we need to create separate output types for each
country requirements.

TCS Public
FORMS: However, Smart forms are different for each country, which is a
development effort. New output types will be assigned to these FORMS

Hint: We dont need to create new Output procedures, unless required by customer
and Regional countries outputs can be assigned to Global business template output
procedures.

19) Availability Check:

We have very minimal settings to be done here for local countries. Availability
check is one of the areas which is followed Global process template.

We have to define Default settings for Availability check through below step. This is
to be done for all Regional countries Sales areas.

20) Pricing;

This is the area, where one consultant has to spend more time in Rollout process,
due to the different pricing & tax requirements for different countries.

We have to analyze local countries pricing model in their business like Material
prices, Customer, Dealer, Retail prices, Different discounts, Promotions, deals etc.

It is a very good idea to develop new Pricing procedure for local countries by
following Global business template pricing model. If Global pricing model is using
price lists, price groups, then we have to create separate price list, price groups for
Regional countries.

TCS Public
 Hints & Tips on Pricing:

Avoid creating new condition types, unless necessary. Try to leverage

existing condition types from Global business template
There might be several condition tables created for Global business
template with multiple combinations These can re-used
New pricing procedure naming convention to be followed
Access sequences are sensitive area, where we have to take utmost care in
not interrupting existing Global business template sequence, which may
cause pricing determination errors
Tax condition types are a must for local countries, due to different taxes

Conclusion:
In addition to above configuration, we may have to configure many other processes
in SD for Rollouts, which depends on Global process template & Local process
requirement. We may have to work on lot of Interfaces and development in addition
to basic configuration. It is client specific and purpose of this document is to give
some overview of SAP Rollouts from SD Module perspective.

------------- Thankyou ------------------

TCS Public