Professional Documents
Culture Documents
PROJECT IDENTIFICATION
DOCUMENT IDENTIFICATION
REVISION HISTORY
XXXX
India Project Manager Date (YYYY-MM-DD)
Mr.YYYYYY
SAP Project Manager Date (YYYY-MM-DD)
Mr.ZZZZZZZZZZZZ
India Business Process Owner Date (YYYY-MM-DD)
Mr. SSSSSSSS
India Business Process Owner Date (YYYY-MM-DD)
TABLE OF CONTENT
1. PROCESS DESCRIPTION.................................................................................................................. 5
1.1 Business Process Requirements .................................................................................................. 5
Sales Processing: Drop Shipment Process............................................................................................. 6
Master Data Requirements: .................................................................................................................... 6
Document Type and Number range ........................................................................................................ 7
Sale order Type ...................................................................................................................................... 7
Delivery type ........................................................................................................................................... 7
Billing Type ............................................................................................................................................. 7
The following figure shows the delivery document types created from the sales document types and the
billing document types created from the delivery document types........................................................... 7
Sales, Delivery & Billing type .................................................................................................................. 7
1.2 Business Process Diagrams ....................................................................................................... 10
1.3 Process Step Detailed Requirements & Solution ........................................................................ 12
1.4 Locations Where this Business Process is Performed ................................................................ 13
1.5 Operational Decisions or Logic within the Process ..................................................................... 13
1.6 SOX & Legal Considerations and Company-Specific Policies .................................................... 13
1.7 Reference to Key Process Changes and Process KPI’s ............................................................. 13
1.8 Integration Points ....................................................................................................................... 13
1.9 Potential Future Process Improvements ..................................................................................... 14
2. FUNCTIONAL SOLUTION DESIGN ................................................................................................. 14
SCENARIO-1 ALLOCATE FINISHED GOODS AVAILABLE FROM FINISHED GOODS STOCK .......... 14
2.1 Organization Structure Considerations ....................................................................................... 15
2.2 Master Data Considerations (including all relevant data relationships) ....................................... 16
2.3 System Configuration Considerations......................................................................................... 16
3. TECHNICAL/DEVELOPMENT RELATED ITEMS ............................................................................ 18
3.1 Workflow .................................................................................................................................... 18
3.2 Reporting (operational and analytical) ........................................................................................ 19
3.3 Interfaces ................................................................................................................................... 19
3.4 Data Conversion / Historical Data ............................................................................................... 19
3.5 Enhancements ........................................................................................................................... 20
3.6 Output (e.g. Forms) .................................................................................................................... 20
1. Process Description
1.1 Business Process Requirements
The ABCD vendor Sales process is required in the system by business, the ABCD production is entered
manually in the ABCD location (The ABCD stocks treated as Non-Valuated stocks). The ABCD sales are
treated as in transit sales process which happens against the E1 form. The PO is raised from the
Samarlakota plant in between they receive the order from the customer the vendor move the goods to the
customer location with E1 form. The customer is invoiced with C form 0 taxes. This process is used to avoid
the double taxation.
In the current system the stocks are taken into the Samarlakota plant and sending the goods to the
customer. The current requierement is the goods should not come to the plant in the system. Goods are
removed to the customer from the vendor place.
Reporting requirements, profitability analysis of the ABCD Materials and E1 assessment reports from the
system.
The excise duties are not involved in this process the taxes are exempted under the C form issuance with
tax rate 0.
The material liability lies with vendor the material ownership transferred to the Ship to once the goods moved
from the vendor location to customer.
.
Benefits :
Tracking of the entire cycle from the sales order to vendor payment , PO item prices are loaded to the Materials .
Easy to anlasis the profitability of the ABCD E1 sales materials and E1 assesment report can be generated from the
system.
Once the Purchase order is created the Turnover discount is added in the purchase order to hide material price to the
customer when steeling the vendor after the discount value is settled to the vendor the actual cost is loaded to the
materials.
All the ABCD materials are maintained as Third party items the separate material codes are maintained based on
vendor specifications the source list is checked in the material master and the source list is maintained.
The Item category BANS -Third-party item is maintained in the Materials the pricing procedure ZIN001 is used to
calculate the Prices in the ABCD sales documents. The Materials are treated as Third party materials .
In SAP R/3, each process is described by using different document types. Each document generated will
have specific number assigned to it. The following are the sales order; outbound delivery and billing document
types defined in SAP for ABCD and the SAP s ystem number ranges assigned. All document numbers are
internally assigned by the system.
Delivery type
Billing Type
Billing Type Desc SAP Doc type Number range From To
Invoice ZMRB 3 ABCD Specific
Numbers
The following figure shows the delivery document types created from the sales document types and the billing
document types created from the delivery document types
The Pricing Element to be created and populated at the time of Sale Order Creation as shown below:
Any Manual Changes in Sale order will trigger Work Flow Approval ie changes in any Pricing Condition, Incoterm,
payment Terms etc.
For certain customer, business wants to enter the Proposed Packaging Material Type instruction at the time of Sale
order and same will instruction will be available to Warehouse Clerk at the time of Packaging the material for eg Special
packaging of material for European customer.
Loading Slip will contain all the loading instruction at the time of Loading of goods for eg Number of Pallets, truck
Number, Driver License etc
System will populate the Customer and Material data information in sale order. All master data will be uploaded in
system as per SAP template.
Box/ Pallet
Number of Boxes/ Pallet per Deliver line item as per batch will be picked by system automatically at the time of creation
of outbound delivery, depend on the packaging instruction maintained in system .
Incoterm
Below Mentioned Incoterm will be created and maintained in Customer Master in SAP.
EXWORKS / EXFACTORY
FOB (Onboard upto local sea port)
C&F (Upto destination sea port)
CIF (Upto destination sea port including insurance)
DDU (Door to Door Delivery but Duty Unpaid)
DDP (Door to Door Delivery including Duty Paid)
Payment terms
Below Mentioned Payment will be created and maintained in Customer Master in SAP.
Material reservation
The Materials are reserved to the sales orders the stocks are treated as a special stocks in the
system.
Location name
Location Country Number of Users Point of Contact
ABCD Sales Office India 10
N/a
N/a
Sales Organizations
The sales organization is an organizational unit within logistics, that structures the company according to its
sales requirements.
Distribution Channel
The distribution channel represents the channel through which salable materials or services reach
customers. Typical distribution channels include wholesale, retail and direct sales.
Distribution Channel is used when processes like order entry are totally different
Distribution Channel enables differences in Customer, Material, and Pricing master data
Distribution Channel promotes segregation of duties
Distribution Channel facilitates reporting (example, Inter Company for assigning revenue in CO-PA)
Division
In the SAP System you can define a division-specific sales organization. Product groups, i.e. divisions, can
be defined for a wide-ranging spectrum of products.
For every division you can make customer-specific agreements on, for example, partial deliveries, pricing
and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing
procedures
Sales Area
Shipping Point
Shipping points are defined in the SD organizational master data setup. They are the top level of the
organization in shipping. Deliveries are always initiated from exactly one shipping point. A shipping point is
assigned one or more plants and can be subdivided into several loading points.
Shipping points are independent organizational units that are linked to a plant and represent the point of
departure or receipt of materials. A plant may have many shipping points. A delivery is created from one
shipping point only
Essential master was created in ERP system in the implementation phase, master data that suits its
operational focus, for example, master data for materials, vendors, and customers.
This master data usually consists of standardized SAP Best Practices default values, and enables you to go
through the process steps of this scenario.
Essential Master Data Consideration for Return Processes are :
Sales Area
Customer Master
Material Master
Pricing Master
Standard Order Document types should be configured to address the customer requirements
Availability check needs to be activated in customizing for accurate stock determination during the order entry
Automatic price and discount should be proposed during the order entry via customizing. Should be able to
modify certain prices during the order entry
Free Goods functionality needs to be configured for giving goods free along with main order
Below are the Configured Consideration for this Blue Print Process
Core Configuration
3.1 Workflow
Work Flow need to set if there is any change/ Addition in the Pricing Condition, Incoterm & Payment term. Hierarchy of
Work Flow Approval needs to be decided with the ABCD Business User.
The Workflow Object WS90000005- ZSD_SO_WF this workflow could tweak for the India requirements.
Standard SAP Reports are available as shown Below, if required will create Customized Report as per the
Requirement.
3.3 Interfaces
N/a
ABCD Business needs to draw a strategy on Open Sales Order moving from their current Orion System to SAP at the
Time of Final preparation for Go Live. ABCD Business Team needs to do the Cleansing Process of Open Sales Order
and try to move Minimum Sales Order to SAP.
Plant wise number series the Z table has been maintained with combination of sales area and plant with
number range intervals .
Custom Field addition in Outbound delivery- Warehouse will enter the detail manually in system and same
below information will be printed on the Loading Slip.
Truck Number Container Number Driver License
xxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Material Reservation
Standard functionality of Material reservation will be enhanced and below fields will be added in the standard
functionality.
3.7 Modifications
N/a
3.8 SOA/Composition
N/a
N/a
4. Authorization
Authorizations
Data Objects
ID Authorization Reason # of employees
(TA code)
Employee SAP_NBPR_EMPLOYEE_S Assignment of
(Professional User) this role is
necessary for
basic
functionality.
Sales Administrator SAP_NBPR_SALESPERSON_S Sales Order Entry
There will be change in Role and Authorization for ABCD Employee. Specific Roles will be created and
assign to Individual person with in ABCD.
6. Self-Services
7. Questionnaire
PR Change
Transaction code ( SAP GUI) ME52N
Reversal: Change Purchase Requisition
Transaction code ( SAP GUI) ME52N
Business role Procurement team
( )
Business role menu
Comment
Billing