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PROJECT DISHA

BUSINESS BLUEPRINT

Henkel SPIC India Limited

SAP Project Implementation

SD MODULE

Version 1.1

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PROJECT DISHA

Document History
Version State / Changes Date Author
1.0 For Sign Off 09.03.04 Rainy Lu (MC)
Abhay Kulkarni (EMC)
S.Vijayamadhavan(KU)
P. Selvakumar(KU)
1.1 Revise Blueprint 28.07.04 Rainy Lu (MC)
Naveen Sharma (EMC)
S.Vijyamadhavan (KU)

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PROJECT DISHA

TABLE OF CONTENT

1 SD: AS-IS GENERAL INFORMATION........................................................................................... 6


1.1 SALES ORGANIZATION STRUCTURE................................................................................................ 6
1.2 ORGANIZATION STRUCTURE FOR SKP............................................................................................ 7
1.3 FINISHED GOODS PROCESS FLOW DIAGRAM.................................................................................... 8
1.4 COMPANIES................................................................................................................................ 9
1.5 PRODUCTS.................................................................................................................................. 9
1.6 MANUFACTURING PLANTS.......................................................................................................... 10
1.7 CFA/DEPOTS........................................................................................................................... 10
1.8 TOLL MANUFACTURERS............................................................................................................. 10
1.9 ZONES..................................................................................................................................... 10
1.10 CUSTOMER TYPES................................................................................................................... 11
1.11 MATERIAL MOVEMENT............................................................................................................ 12
1.12 BUSINESS RULES FOR INVOICING............................................................................................... 13
1.13 GENERAL NOTES..................................................................................................................... 13
2 SD: AS-IS BUSINESS PROCESSES............................................................................................... 14
2.1 SALES PLANNING .................................................................................................................... 18
2.2 MANUFACTURING PLANT TO DEPOT (CROSS COMPANY ALSO)......................................................... 18
2.3 MANUFACTURING PLANT TO DOMESTIC CUSTOMER / TOLL MANUFACTURER..................................... 18
2.4 TOLL MANUFACTURER (WITH HENKEL REGISTRATION) TO DEPOT..................................................... 18
2.5 DIL/CCCO DEPOT TO HSIL DEPOT (WITHIN DEPOT / ACROSS DEPOT).......................................... 19
2.6 HSIL DEPOT TO RE-DISTRIBUTOR / SUPER DISTRIBUTOR / MODERN TRADE CUSTOMER................... 20
2.7 DEPOT TO DOMESTIC CUSTOMER / TOLL MANUFACTURER.............................................................. 21
2.8 DEPOT TO DEPOT...................................................................................................................... 22
2.9 MANUFACTURING PLANT / DEPOT TO CUSTOMER – FOR SAMPLES.................................................... 22
2.10 DIL/CCCO DEPOT TO HSIL DEPOT (WITHIN DEPOT) – FOR SAMPLES......................................... 23
2.11 MFG PLANT OF ONE COMPANY TO MFG PLANT OF OTHER COMPANY............................................. 23
2.12 MFG PLANT OF ONE COMPANY TO MFG PLANT OF SAME COMPANY............................................... 24
2.13 HIGH SEA SALES.................................................................................................................... 24
2.14 IMPORT COMPONENT SALE TO TOLL MANUFACTURER.................................................................. 25
2.15 TOLL MANUFACTURING TO MERCHANT EXPORT .......................................................................... 25
2.16 SALES RETURN CLAIM............................................................................................................. 25
2.17 NON-SALES RETURN CLAIM..................................................................................................... 25
2.18 DAMAGED CLAIM.................................................................................................................... 26
2.19 STOCK RETURN....................................................................................................................... 26
2.20 DEBIT NOTE........................................................................................................................... 26
2.21 STOCK REPLACEMENT.............................................................................................................. 26
2.22 MANUFACTURING PLANT TO NEPAL CUSTOMER........................................................................... 27
2.23 DEPOT TO NEPAL CUSTOMER.................................................................................................... 28
2.24 MANUFACTURING PLANT / DEPOT TO BANGLADESH CUSTOMER..................................................... 29
2.25 MANUFACTURING PLANT / LOAN LICENSE MANUFACTURE (WITH HENKEL REGISTRATION) TO EXPORT CUSTOMER
30 ................................................................................................................................
2.26 SCHEMES 31
2.27 FREIGHT................................................................................................................................. 33
2.28 SALES INCENTIVE.................................................................................................................... 33
3 SD: TO-BE ORGANIZATION, MASTERS AND FUNCTIONS.................................................. 34
3.1 TO-BE FINISHED GOODS AND TRADING GOODS PROCESS FLOW DIAGRAM....................................... 34
1.1 SALES ENTERPRISE STRUCTURE................................................................................................... 35
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PROJECT DISHA
1.2 GENERAL SETTINGS................................................................................................................... 43
1.3 CLASSIFICATIONS FOR SALES MASTERS........................................................................................ 44
1.4 BASIC FUNCTIONS IN SALES........................................................................................................ 55
SD: TO-BE BUSINESS PROCESSES............................................................................................... 60
1.5 STANDARD SALES PROCESSING IN SAP........................................................................................ 60
1.6 STANDARD EXCISE PROCESSING IN CIN....................................................................................... 67
1.7 TO-BE BUSINESS PROCESSES FOR SALES...................................................................................... 84
MANUFACTORY............................................................................................................................... 85
106 .....................................................................................
1.8 TO-BE PRICING PROCEDURE FOR SALES 106
3.2 SD: REQUIRED LAYOUTS AND REPORTS..................................................................................... 136

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PROJECT DISHA

SD: Flowcharts

SD-01 To-Be Sales from Manufactory


SD-02 To-Be Sales from Manufactory
SD-03 To-Be Sales from Depot
SD-04 To-Be sales from Manufactory
SD-05 To-Be sales from Depot to normal customer
SD-06 To-Be Sales from Depot to Nepal customer
SD-07 To-Be Sample to customer from Manufactory
SD-08 To-Be sample to customer from Depot
SD-09 To-Be Import Component Sales to Toll Manufactory from Depot
SD-10 To-Be Third Party ordering for High Sea Sales
SD-11 To-Be Stock Transfer from Depot
SD-12 To-Be Sales Return to factory
SD-13 To-Be Sales Return to factory
SD-14 To-Be Sales Return to Depot
SD-15 To-Be Stock Return to Manufactory

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PROJECT DISHA

1 SD: AS-IS General Information


1.1 Sales Organization Structure

Figure 1.1: Sales Organization Structure

Zonal
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1.2 Organization Structure for SKP

Figure 1.2: Organization Structure for SKP

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1.3 Finished Goods Process Flow Diagram

Henkel SPIC The Calcutta Chemicals


India Ltd (HSIL) Company (CCCo)

Karaikal Coimbatore Ambattur Tiljala Mfg


Mfg Plant Mfg Plant Mfg Plant Plant

HSIL Depot CCCO Depot

Domestic Customer
Toll HMIL Depot
Export Customer
Manufacturers

Depot Re-Distributor Super Distributor Modern Trade

Retailer Sub-Stockiest

Salon (For SKP


Prof only) Consumer

Figure 1.3: Finished Goods Process Flow Diagram

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PROJECT DISHA

1.4 Companies

Henkel has three different entities namely:

· Henkel SPIC India Limited (HSIL)


· The Calcutta Chemicals Company (CCCo)
· Henkel Marketing India Limited ( HMIL )

Henkel – Schwarzkopf Professional is purely a part of HSIL.

Marketing and Product Sales rights of HSIL and CCCo either directly or via HMIL.

Only “Henkel” word will always represent HSIL, CCCo and HMIL together in the
following document.

1.5 Products

Henkel sells the following products to the Customers:

· UW (Detergents and Cleaners)


· UK (Cosmetics)
· UW Others (or UW non branded)
· UK Others (or UK non branded)
· SKP Prof (Schwarzkopf Professional)

UW, UK and UW Others are manufactured either at Henkel own Factories or Toll
Manufacturers, Loan License Manufacturer Subsequently it is either moved to
depot/CFA or sold to direct customers. Again from depot/CFA, it is sold to
RD/SD/Modern Trade Customers.

While SKP Prof Products are trading material and will always be received at Chennai
HSIL Depot through imports. Subsequently it will be either moved to other Depots or
sold to Re-Distributors under HSIL Company.

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PROJECT DISHA

1.6 Manufacturing Plants

Henkel has the following 4 manufacturing plants:

Sr No Entity Manufacturing Plant Division(s)


1 HSIL Karaikal Plant UW, UW Others
2 HSIL Coimbatore Plant UW
3 CCCo Ambattur Plant UW, UK
4 CCCo Tiljala Plant UK

1.7 CFA/Depots

Henkel has 34 CFAs/Depots all over India to sell UW, UK and SKP Prof Products.
Henkel owns 7 Depots while remaining 27 are CFAs.

1.8 Toll Manufacturers

Henkel has 19 Toll Manufacturing Units all across India. 8 Toll Manufactures supply
UK products while remaining 11 supplies UW products.

Henkel directly purchases Finished Goods from 13 Toll Manufacturers while it receives
the Finished Goods manufactured on Job Work basis from remaining 6 Toll
Manufacturers.

These 6 Toll Manufacturers have Excise registration on account of HSIL/DIL/CCCo (2


for HSIL, 1 for DIL, 2 for CCCo and 1 for HSIL/CCCo). The Finished Goods produced
after Job Work is stored at these 6 Toll Manufacturer premises under HSIL/DIL/CCCo
Sales Tax registration.

1.9 Zones

Henkel has 4 Zones namely North, East, West and South to cater to all India Sales
Requirement.

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PROJECT DISHA

1.10 Customer Types

The Customers have been classified based on the guideline laid down by Henkel. The
different Customer types are as follows:

· Fragmented Trade o
Re-Distributor
o Super Distributor

· Modern Trade
o Stand-alone Super Markets
o Super Market Chains
o Hypermarket
o Cash & Carry
o Co-operative Stores
o Groceries
o Convenient Stores
o Discount Stores
o Medical Stores

· Chek Franchise
o Re-Distributor
o Super Distributor

· Domestic Customer
o Bulk
o Institution
o Canteen Stores Department
o Government / Semi-Government Parties
o Special Customer
o Wholesaler (HSIL is wholesaler for DIL/CCCo)
o Scrap Customer

· Export Customer

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PROJECT DISHA

1.11 Material Movement

The domestic sale or material movement from Manufacturing Plant and Depot/CFA is
either done through Invoice, Stock Transfer Note (STN) or Delivery Challan (DC).

Invoice attracts Excise Duty and Sales Tax when generated from own Manufacturing
Plant while the same attracts Sales Tax, Resale Tax or Multipoint Tax when generated
from Depot/CFA as the case may be.

Sales Tax depends on the type of purchase that determines whether it is a first sale or
second sale.

Stock Transfer Note attracts only Excise Duty when generated from own
Manufacturing Plant while the same does not attract any Excise Duty when generated
from Depot/CFA.

Delivery Challan does not attract any Excise Duty. Depending on the type of material
movement, it attracts Sales Tax. It is also used free of cost supply.

Nepal Export Invoice will attract Excise Duty and no Sales Tax. While regular Export
Invoice does not attract any Excise Duty or Sales Tax. It will have only the price that
could be FOB, CIF or Ex-works.

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PROJECT DISHA

1.12 Business Rules for Invoicing

Invoice is normally covered with an instrument such as Cheque, Demand Draft (DD)
or Credit Note (CN) duly processed from Zonal Office in favor of the Customer or a
credit clearance from Sales Controller.

For Re-Distributor and Super Distributor, Henkel normally covers Invoice with Cheque.
Whenever an Invoice is generated, the Cheque with the corresponding amount is filled
and deposited in the Bank on a particular date depending on the Credit Limit (Credit
Period). Henkel also takes Bank Guarantee (given by the Bank) or Trade Deposit
(deposited in Henkel Bank Account) from Re-Distributor and Super Distributor. Henkel
pays normal interest on the Trade Deposit. Henkel also accepts DD from Re-
Distributor and Super Distributor.

For Scrap Customers, the payment is by DD or Cheque. If scrap is sold from


Manufacturing Plant, Scrap Customer has to provide Caution Deposit prior to Order
finalization.

For other Customers, it is either Open Credit or Special Terms.

1.13 General Notes

a) Local Sales Tax (LST) or Central Sales Tax (CST) tax is applicable in all the States
of India except for some states such as Bihar, Haryana, etc. LST is for sales within
the State while CST is for sales across States. There is Value Added Tax (VAT) for
sales in states like Haryana, etc and Multipoint Tax (MPT) for sales in states like
Bihar, etc.
b) Tax instances like Surcharge (SC), Additional Surcharge (ASC), Resale Tax (RST),
Turnover Tax (TOT) also forms part of Sales Tax depending on the State.
c) Depending on the LST/CST, VAT and MPT, there are different formats of Invoice in
different States.
d) As on today, the Excise Duty is calculated on 65% of MRP for all the products as
per Central Government regulations.

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PROJECT DISHA

2 SD: AS-IS Business Processes

Henkel has the following Sales Business Processes:

A) Domestic Sale

I. For UW/UK (HSIL/DIL/CCCo)

· Manufacturing Plant to Depot (Cross Company also)


· Manufacturing Plant to Customer (Institution/Special)
· Toll Manufacturers (with Henkel registration) to Depot
· DIL/CCCo Depot to HSIL Depot (within Depot / across Depot)
· HSIL Depot to Re-Distributor / Super Distributor
· HSIL Depot to Modern Trade Customer
· Depot to Customer (Institution/Special)
· Depot to Depot
· Toll Manufacturer plant to Merchant exporter

II. For UW Others (HSIL)

· Manufacturing Plant to Depot (For Detergents)


· Manufacturing Plant to Bulk Customer (For Zeolite and Aqualite) / Toll
Manufacturer (For Speckles, semi finished and Zeolite)
· Depot to Toll Manufacturer (For Detergents)

III. For SKP Prof (HSIL)

· Depot to Re-Distributor
· Depot to Depot

IV. For Scrap (HSIL/DIL/CCCo)

· Manufacturing Plant to Customer (Excisable and Non-Excisable)


· DIL/CCCo Depot to HSIL Depot (within Depot)
· Depot to Customer / Toll Manufacturer

V. For Samples – all products (HSIL/DIL/CCCo)

· Manufacturing Plant to Customer


· DIL/CCCo Depot to HSIL Depot (within Depot)
· Depot to Customer

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PROJECT DISHA

VI. Raw Material (RM) / Packing Material (PM) Sale (HSIL/DIL/CCCo)

· Manufacturing Plant of one Company to Manufacturing Plant of other


Company (For RM/PM)
· Manufacturing Plant of one Company to Manufacturing Plant of same
Company (For RM/PM)
· Manufacturing Plant to Toll Manufacturer (For RM/PM)
· Manufacturing Plant to Depot (For RM/PM)
· Depot to Toll Manufacturer (For RM)
· DIL/CCCo Depot to HSIL Depot (within Depot) – (For PM)
· High Sea Sales (For RM/PM)
· Import Component Sale to Toll Manufacturer (For RM/PM)

VII. Other Processes (HSIL/DIL/CCCo)

· Claims
o Sales Return Claim (For Sales)
o Non-Sales Return Claim
o Damaged Claim
· Stock Return (For Stock Transfers)
· Debit Note
· Stock Replacement (For Sales)

B) Exports

I. For UW/UK (HSIL/CCCo)

· Manufacturing Plant to Nepal Customer


· Depot to Nepal Customer
· Manufacturing Plant / Depot to Bangladesh Customer
· Manufacturing Plant to Export Customer
· Toll Manufacturer (with Henkel registration) to Export Customer

II. For UW Others (HSIL)

· Manufacturing Plant to Export Customer (For Zeolite and Detergents)

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PROJECT DISHA

After consolidating the above Business Processes, the final Sales Business
Process Master List (BPML) is as mentioned below:

1. Manufacturing Plant to Depot (Cross Company also)


2. Manufacturing Plant to Domestic Customer / Toll Manufacturer
3. Toll Manufacturer (with Henkel Registration) to Depot
4. DIL/CCCo Depot to HSIL Depot (within Depot / across Depot)
5. HSIL Depot to Re-Distributor / Super Distributor / Modern Trade Customer
6. Depot to Domestic Customer / Toll Manufacturer
7. Depot to Depot
8. Manufacturing Plant / Depot to Customer – for Samples
9. DIL/CCCo Depot to HSIL Depot (within Depot) – for Samples
10. Mfg Plant of one Company to Mfg Plant of other Company
11. Mfg Plant of one Company to Mfg Plant of same Company
12. High Sea Sales
13. Import Component Sale to Toll Manufacturer
14. Toll Manufacturer to Merchant export
15. Sales Return Claim
16. Non-Sales Return Claim
17. Damaged Claim
18. Stock Return
19. Debit Note
20. Stock Replacement
21. Manufacturing Plant to Nepal Customer
22. Depot to Nepal Customer
23. Manufacturing Plant / Depot to Bangladesh Customer
24. Manufacturing Plant / Toll Manufacturer (with Henkel registration) to Export
Customer

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PROJECT DISHA

The following processes will be covered under different Modules of SAP:

· The Rolling Sales Forecast (RSF) entry and subsequent Stock Requirement
Report (SRR) generation for Material (RM/PM) Planning for long lead items will be
covered under PP Module.

· The Sales Plan entry based on RSF and subsequent Stock Requirement and
Dispatch Schedule (SR&DS) generation for Production Planning will be covered
under PP Module.

· Sales Plan-Demand will be covered under PP Module.

· The requirement from Toll Manufacturers for Production Planning will be covered
under PP Module.

· The Code Conversion for Finished Goods at Manufacturing Plant and Depots will
be covered under MM Module.

· The Stock Conversion for Finished Goods at Manufacturing Plant and Depots will
be covered under MM Module. The stock conversion is moving FG from Saleable
to Un-saleable, Saleable to Damaged, Un-saleable to Saleable, and Damaged to
Saleable.

· Stock Transfer portion such as Purchase Order, Material Receipt and Invoice
Verification will be covered under MM Module. While the Delivery and Excise
Invoice/Stock Transfer Note will be under the purview of SD Module.

· The entire Accounts Receivable (AR) will be covered under FI Module.

· The Primary Freight will be covered under MM Module in the Stock Transport
Order (STO) option.

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PROJECT DISHA

The following explains each of the above-mentioned Sales Business Process in detail.

2.1 Sales Planning

Information of previous 3 months sales average and corresponding period of last year
sales data, material wise will be displayed as Z report for Sales Planning.

Henkel sales planning Depot plant wise will be furnished for Production Planning.

2.2 Manufacturing Plant to Depot (Cross Company also)

Finished Goods are manufactured at Manufacturing Plant and moved to Depot/CFA


located in various states through Stock Transfer Note. Even RM/PM, whenever
required, are moved from Manufacturing Plant to Depot/CFA through Stock Transfer
Note. If the Goods are moved from Manufacturing Plant of one Company to Depot of
other Company, the Cross Company Excise Invoice is generated.

Sr No Entity Product(s)
1 HSIL UW, UW Others (Detergents), RM/PM
2 DIL UW, RM/PM
3 CCCo UW, UK, RM/PM

2.3 Manufacturing Plant to Domestic Customer / Toll Manufacturer

UW and UK products are manufactured at Manufacturing Plant and sold to Institution


and Special Customer. The approval is obtained from VPs and MD prior to negotiation
of such orders. The order is placed after discussion on pricing, mode of delivery and
payment terms. This sale is done against an Invoice and it is a first sale.

UW Others – products are manufactured at Manufacturing Plant and sold to Bulk


Customer (Zeolite and Aqualite) and Toll Manufacturer (Speckles and Zeolite). This
sale is done against an Invoice and it is a first sale.

Scrap is sold to Direct Customer and RM/PM to Toll Manufacturer either against an
Invoice or Delivery Challan (no Excise) and it is a first sale.

Sr No Entity Product(s)
1 HSIL UW, UW Others (Zeolite, Aqualite, Speckles), Scrap,
RM/PM
2 DIL UW, Scrap, RM/PM
3 CCCo UW, UK, Scrap, RM/PM

2.4 Toll Manufacturer (with Henkel registration) to Depot

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PROJECT DISHA
Finished Goods manufactured on Job Work basis at Toll Manufacturer are stored
under Henkel Registration in the Toll Manufacturer’s premises itself. These Finished
Goods are moved to Depot/CFA through Stock Transfer Note.

Sr No Entity Product(s)
1 HSIL UW
2 DIL UW
3 CCCo UW, UK

2.5 DIL/CCCo Depot to HSIL Depot (within Depot / across Depot)

As mentioned earlier that the Marketing and Product Sales rights of DIL and CCCo
either directly or otherwise lie with HSIL, the DIL and CCCo products will be first sold
to HSIL Depot and subsequently from HSIL Depot it will be sold to Re-
Distributor/Super Distributor/Modern Trade Customer.

This sale from DIL/CCCo Depot to HSIL Depot will happen against an Invoice.
Whether it is first sale or second sale will depend on the following:

· First Sale:

o For products received from DIL/CCCo Manufacturing Plant


o For products received from Toll Manufacturer of different State then of Depot

· Second Sale:

o For products received from Toll Manufacturer of the same State as of Depot

Sr No Entity Product(s)
1 DIL UW, Scrap, PM
2 CCCo UW, UK, Scrap, PM

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PROJECT DISHA

2.6 HSIL Depot to Re-Distributor / Super Distributor / Modern Trade


Customer
UW, UK and SKP Prof Products after received at HSIL Depot will be sold to Re-
Distributor, Super Distributor and Modern Trade Customers. This sale will happen
against an Invoice. Whether it is first sale or second sale will depend on the following:

· First Sale:

o For UW products received from HSIL own Manufacturing Plant


o For UW products received from Toll Manufacturer of different State then of
Depot
o For imported SKP Prof products

· Second Sale:

o For UW/UK products received from DIL/CCCo Depot


o For UW products received from Toll Manufacturer of the same State as of
Depot

Sr No Entity Product(s)
1 HSIL UW, UK, SKP Prof

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PROJECT DISHA

2.7 Depot to Domestic Customer / Toll Manufacturer

UW and UK products received at Depot are sold to Institution and Special Customer.
This sale is done against an Invoice. Whether it is first sale or second sale will depend
on the following:

· First Sale:

o For UW/UK products received from Manufacturing Plant


o For UW/UK products received from Toll Manufacturer of different State then of
Depot

· Second Sale:

o For UW/UK products received from DIL/CCCo Depot and sold from HSIL Depot
o For UW/UK products received from Toll Manufacturer of the same State as of
Depot

Scrap is sold to Domestic Customer against an Invoice and it is either a first sale or
second sale as the case may be.

RM and UW Others (Detergents) received at Depot are sold to Toll Manufacturer. This
sale is done against an Invoice and it is a first sale.

Samples for all products are sent through Delivery Challan to Domestic Customer.

Sr No Entity Product(s)
1 HSIL UW, UW Others (Detergents), UK, RM, Scrap
2 DIL UW, RM, Scrap
3 CCCo UW, UK, RM, Scrap

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PROJECT DISHA

2.8 Depot to Depot

UW, UK and SKP Prof Products received in one Depot can be moved to other Depot
against Stock Transfer Note.

Sr No Entity Product(s)
1 HSIL UW, UK, SKP
2 DIL UW
3 CCCo UW, UK

2.9 Manufacturing Plant / Depot to Customer – for Samples

Samples for all products are sent from Manufacturing Plant or Depot through Delivery
Challan to Direct Customer. If the samples are sent from Manufacturing Plant, the
excise duty will be paid to Central Excise Department.

Sr No Entity Product(s)
1 HSIL UW, UW Others (Zeolite, Aqualite, Speckles)
2 DIL UW
3 CCCo UW, UK

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PROJECT DISHA

2.10 DIL/CCCo Depot to HSIL Depot (within Depot) – for Samples

As mentioned earlier that the Marketing and Product Sales rights of DIL and CCCo
either directly or otherwise lie with HSIL, the DIL and CCCo products will be first sold
to HSIL Depot and subsequently from HSIL Depot it will be given as Samples to
Customer.

This sale from DIL/CCCo Depot to HSIL Depot will happen against an Invoice.
Whether it is first sale or second sale will depend on the following:

· First Sale:

o For products received from DIL/CCCo Manufacturing Plant


o For products received from Toll Manufacturer of different State then of Depot

· Second Sale:

o For products received from Toll Manufacturer of the same State as of Depot

Sr No Entity Product(s)
1 DIL UW
2 CCCo UW, UK

2.11 Mfg Plant of one Company to Mfg Plant of other Company

The RM/PM from Manufacturing Plant of one Company is sold to Manufacturing Plant
of other Company. This sale is done against an Invoice and it is a first sale.

Sr No Entity Product(s)
1 HSIL RM/PM
2 DIL RM/PM
3 CCCo RM/PM

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PROJECT DISHA

2.12 Mfg Plant of one Company to Mfg Plant of same Company

The RM/PM from Manufacturing Plant of one Company is moved to Manufacturing


Plant of same Company. This movement is done against Stock Transfer Note.

Sr No Entity Product(s)
1 CCCo RM/PM

2.13 High Sea Sales

In this process, goods are imported and directly supplied to either Converter or Toll
Manufacturer.

The High Sea Sales process is as follows:

· Henkel places PO to overseas Vendor and receives the goods.


· On arrival of goods, Invoice, Packing List and Bill of Lading/Airway Bill is
submitted to Carrying and Forwarding Agent to process Bill of Entry.
· Henkel and the Party (Converter or Toll Manufacturer) finalize the High
Sea Sales Agreement after adding 2% on the CIF price. The Bill of entry is filed in
the name of Party.
· The Party remits the duty and subsequently the goods are forwarded to
Party’s manufacturing plant.

Sr No Entity Product(s)
1 HSIL RM/PM
2 DIL RM/PM
3 CCCo RM/PM

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PROJECT DISHA

2.14 Import Component Sale to Toll Manufacturer

The process of Import Component Sales to Toll Manufacturer is as follows:

· Henkel receives the imported goods and pay the Customs Duty.
· Then the goods are transferred to Henkel Excise registered Depot/CFA.
· The CENVAT (equivalent to CVD) is claimed at the Depot/CFA.
· The goods are then sold to Toll Manufacturer against an Excise Invoice.

Sr No Entity Product(s)
1 HSIL RM/PM
2 DIL RM/PM
3 CCCo RM/PM

2.15 Toll Manufacturing to Merchant export

HSIL, CCCo or DIL Toll Manufacturer dispatch products from their factory, while doing so,
they create the delivery document in favour of the merchant exporter, and commercial sale
invoice is being raised favouring the company.

Only invoicing is being generated from the specific depot.

2.16 Sales Return Claim

The Sales Return Claim is generated whenever the products are returned from any
Customer, Institution, Re-Distributor, Super Distributor or Toll Manufacturer. This claim
could be with reference to Invoice or without any reference. The pricing would be the
same as of Invoice. This claim is approved by VP(s) and processed at Zones.

2.17 Non-Sales Return Claim

The Non-Sales Return Claim is generated for 40 odd activities such as Bank Charges,
RD Salesman Subsidy, Van Incentive, etc. The fixed amount is credited to the Re-
Distributor or Super Distributor. This claim is approved by ASM and processed at
Zones.

Henkel maintains budget for Non-Sales Return Claim for some activities such as
Window Display, etc. This budget for different activities is declared in the Journey
Cycle (JC) calendar and it is specific to Zone, Brand, Activity and Period.

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PROJECT DISHA
At the time of Credit Note generation for Non-Sales Return Claim, the system should
check the allotted budget and accordingly allow or disallow Credit Note generation. As
mentioned earlier, this can be configured in FM Module and Henkel needs to check
whether the same is being implemented.

2.18 Damaged Claim

The Damaged Claim is generated for the damaged products lying at Re-Distributor or
Super Distributor. The fixed amount is credited to the Re-Distributor or Super
Distributor. This claim is approved by ASM in concurrence with TSS/TSI and
processed at Zones.

Note: Henkel generates Credit Notes for Sales Return Claim, Non-Sales Return Claim
and Damaged Claim. Multiple Credit Notes can be generated against each Claim after
the proof is available from Re-Distributor/Customer. While clearing an Accounting
document generated for an Invoice, the pending Credit Notes should be adjusted
against an Invoice Accounting document.

There should be a provision to print all the Credit Notes at Zonal Offices.

2.19 Stock Return

The Stock Return is generated whenever the products are returned from any Depot.

2.20 Debit Note

The Debit Note is generated for Re-Distributor or Super Distributor against charges for
bouncing of Cheques. There should be a provision to enter the reason for Cheque
bouncing. There should be a provision to print all the Debit Notes at Zonal Offices.

2.21 Stock Replacement

The replacement takes place whenever the Customer receives products in shortage.
The products are delivered free of charge against shortage to the Customer.

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PROJECT DISHA

2.22 Manufacturing Plant to Nepal Customer

UW and UK products are manufactured at Manufacturing Plant and exported to Nepal


Customer against an Export Invoice. The Excise Duty will be paid to Central Excise
Department during Invoicing.

The export process is as described below:

· Nepal Customer places the order.


· Order is circulated to Logistics.
· Invoice is raised with Excise Duty and the products are dispatched.
· Customer receives the products and Custom Authority of Nepal realizes
Custom Duty (set off against Excise Duty paid in India) from the Customer.
· Henkel receives the payment from Customer in Indian currency by way of
DD.

Credit Note concepts are applicable as that of regular Customer in India.

Sr No Entity Product(s)
1 HSIL UW
2 CCCo UW, UK

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PROJECT DISHA

2.23 Depot to Nepal Customer

UW and UK products are manufactured at Manufacturing Plant and moved to Depot


through Stock Transfer Note. Whenever the products are received at Depot for Nepal
Customer, the CENVAT credit is availed for the same. Subsequently the products are
exported to Nepal Customer against an Export Invoice. The Excise Duty will be paid to
Central Excise Department during Invoicing.

The export process is as described below:

· Nepal Customer places the order.


· Order is circulated to Logistics.
· Products are moved from Manufacturing Plant / Toll Manufacturer to Depot
through Stock Transfer Note.
· The CENVAT credit is availed at Depot for the products received for Nepal
Customer.
· Invoice is raised with Excise Duty and the products are dispatched from
Depot.
· Customer receives the products and Custom Authority of Nepal realizes
Custom Duty (set off against Excise Duty paid in India) from the Customer.
· Henkel receives the payment from Customer in Indian currency by way of
DD.

Credit Note concepts are applicable as that of regular Customer in India.

Sr No Entity Product(s)
1 HSIL UW
2 CCCo UW, UK

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PROJECT DISHA

2.24 Manufacturing Plant / Depot to Bangladesh Customer

UW and UK products are manufactured at Manufacturing Plant and moved to Depot


against Stock Transfer Note. Whenever the products are received at Depot for
Bangladesh Customer, the CENVAT credit is availed for the same. These products are
exported to Direct Customer against an Export Invoice directly from Manufacturing
Plant or Depot.

ARE1 (Application for Removal without paying Excise Duty) is submitted to Excise
Department for not paying the Excise Duty whenever the products are exported from
Manufacturing Plant.

The export process is as described below:

· Bangladesh Customer places the order.


· The Selling Price is determined and sent to the Customer. Upon mutual
acceptance, the Proforma Invoice is generated and sent to the Customer for
opening Letter of Credit (L/C) with their banker.
· Finished Goods are manufactured and the status of readiness is reported
to the Customer. Bangladesh Government nominated Agency verifies the
consignment ready for dispatch.
· The Agency also does the valuation of Finished Goods. This is an internal
procedure of that country to assess the correctness of valuation in order to prevent
the under invoicing.
· On receipt of confirmation from our banker on correctness of L/C, Finished
Goods are dispatched to the Customer against an Invoice based on the accepted
terms as mentioned in the L/C.

Sr No Entity Product(s)
1 HSIL UW
3 CCCo UW, UK

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PROJECT DISHA

2.25 Manufacturing Plant / Loan License Manufacture (with Henkel


registration) to Export Customer
UW, UK and UW Others (Zeolite, Detergents) products are manufactured at
Manufacturing Plant / Loan License Manufacture (with Henkel registration) and exported
to Direct Customer against an Export Invoice.

ARE1 (Application for Removal without paying Excise Duty) is submitted to Excise
Department for not paying the Excise Duty.

The export process is as described below:

· Old/New Customer sends the Enquiry.


· Henkel sends the Quotation to Customer and negotiation happens.
· The order is finalized and Proforma Invoice is sent to Customer for
discussion on Payment Terms. The Payment Terms could be L/C Sight, Open
Delivery or D/P (Documents – B/L against Payment through Bank).
· Subsequently the confirmation of order happens either through L/C or
Email. On confirmation, the Dispatch Advice is sent to Manufacturing Plant for
production.
· The FG is moved from Plant to CFS (Container Freight Station). The CFS
is under control of Customs.
· Henkel prepares and sends Export Documents such as Proforma Invoice,
Packing List to CHA (Customs House Agent registered with Customs to handle
exports) for processing.
· CHA prepares Shipping Bill and Bill of Lading after shipment and sends it
to Henkel.
· Finally the Commercial Invoice is sent to the Customer.

Sr No Entity Product(s)
1 HSIL UW, UW Others (Zeolite, Detergents)
2 CCCo UW, UK

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PROJECT DISHA

2.26 Schemes

The schemes at Henkel have been categorized as Primary Schemes and Secondary
Schemes.

· Primary Schemes are given on the face of Invoice itself.


· Secondary Schemes depend on the actual market activity carried out by
Re-Distributor and Super Distributor. The reimbursement on this score is done
through Credit Notes and Free Issues.

A) Primary Schemes

Almost all the Primary Schemes falls under following:

I. Trade Discount – Rupee Off

This discount is given in Rupees per unit.

II. Trade Discount – Percentage Discount

This discount is given in percentage on the Basic Price.

III. Consumer Offer – Free same Product or Free other Product

In this type of promotions, free unit of the same product or free unit of other product is
given on purchase of set of units.

IV. Consumer Promotions

These are schemes those would directly benefit the consumer. The consumer pays
less than printed MRP on the individual pack or gets extra product for the same MRP.

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PROJECT DISHA

B) Secondary Schemes

The secondary schemes are broadly classified as follows:

I. Trade Incentive

This is based on the secondary sales submitted by Re-Distributors as per the activity
announced by company on time to time basis through JC Guide.

II. Quantity Purchased Scheme – Additional Schemes declared from Zonal


Office

This scheme is dependent on the off-take of the Retail Outlet and operates for a
specific period of time. The differential between Secondary entitlement claim and the
Primary scheme already given would be passed through either a Credit Note or settled
by way of further issue of free product under Deliver Challan. The budget for the
activity will be funded from Local Promotion that is derived based on selling
performances.

III. Window Displays

Retail Shop Windows are taken on hire for products display. There is an
agreement/contract for a period of display.

IV. Coupon/Scratch & Win

These are incentives for Retailers and Consumers on purchase of specified products
and volumes. This entitles Retailers and Consumers to participate in Lotteries and
other schemes announced and win prizes instantaneously.

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PROJECT DISHA

2.27 Freight

The freight at Henkel is classified into Primary Freight and Secondary Freight.

A) Primary Freight: The primary freight is used whenever there is stock transfer
either from Factory, Toll Manufacturer or Depot to another Depot.

The primary freight (Rs/MT) will be based on the following:

· Departure destination to depot destination


· Truck type
o Full Truck Load – FTL (9 MT)
o Container (17 MT)
o Part Load

B) Secondary Freight: The secondary freight is used whenever there is sale either
from Factory or Depot to Customer.

The secondary freight (Rs/MT) will be based on truck type with the following into
consideration:

· Local Cart
· Part Load – upcountry (depending on Depot)
o Directly Rs/MT
o Departure destination to Customer destination (Rs per MT/Bag/Case)
o Either side of Depot (could be town specific)
· Parcel Service

Note: If the quantity is in KL, then the conversion factor will be used to convert the
same into MT to arrive at freight cost.

2.28 Sales Incentive

At Henkel, there are sales incentive schemes for TSI/TSS/SO, ASM and RSM. These
incentives are period specific and calculated against monthly targets/KP. These
incentives are validated for primary sales/secondary sales and brand-wise sales.

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PROJECT DISHA

3 SD: TO-BE Organization, Masters and Functions


3.1 To-Be Finished Goods and Trading goods Process Flow Diagram

Henkel SPIC India Ltd.

Karaikal Coimbatore Ambattur Tiljala Mfg


Mfg Plant Mfg Plant Mfg Plant Plant

Toll
Special Customer
Manufacturers HSIL Depot Export Customer

SKP Germany

Henkel Marketing India


Limited. (HMIL ) Depot

Super
Salon (For SKP Re-Distributor Modern Trade
distributor
Prof only)

Retailer

Consumer

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PROJECT DISHA
1.1 Sales Enterprise Structure

The Sales Enterprise Structure in SAP consists of the following:

A) Company Code

The company code is the smallest organizational unit of Financial Accounting for
which a complete self-contained set of accounts can be drawn up for purposes of
external reporting.

The process of external reporting involves recording all relevant transactions and
generating all supporting documents required for financial statements such as balance
sheets and profit and loss statements.

At Henkel: There would be 2 company codes for Henkel India.


4812 for HSIL and 4814 for HMIL.

B) Credit Control Area

Credit control area is an organizational unit that represents an area responsible for
granting and monitoring credit of customers. It specifies and checks a credit limit for
customers.

This organizational unit is either a single company code or, if credit control is
performed across several company codes, multiple company codes. Credit
information can be made available per customer within a credit control area.

A credit control area can include one or more company codes. It is not possible to
assign a company code to more than one credit control area. Within a credit control
area, the credit limits for customers must be specified in the same currency.

At Henkel: There will be one credit control area for both 2-company codes. The same
will be a part of FI module.

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PROJECT DISHA

C) Valuation Level

The valuation level is defined by specifying the level at which material stocks are
valued. The material stocks can be valuated at Plant level or Company code level. The
recommendation is setting material valuation at plant level.

Once set, it is not possible to switch the valuation level from plant to company code, or
vice versa.

The valuation level affects the following:

· Maintenance of Material Master Records: Depending on the valuation level


chosen, accounting data (in particular the valuation price) is maintained.
· G/L accounts in which material stocks are managed
· G/L accounts to which transactions are posted in Materials Management

At Henkel: The valuation level for Henkel will be at Plant level.

D) Plant

A plant is an organizational unit within Logistics, serving to subdivide an enterprise


according to production, procurement, maintenance, and materials planning . A plant
is a place where either material is produced, or goods and services are provided.

The plant is an operating area or branch within a company. The plant is embedded in
the organizational structure as follows:

· The plant is assigned to a single company code. A company code can have
several plants.
· Several storage locations in which material stocks are managed can belong to a
plant.
· A plant can be assigned to several combinations of sales organization and
distribution channel.
· A plant can have several shipping points. A shipping point can be assigned to
several plants.
· A plant has its own material master data.

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PROJECT DISHA

The plant plays an important role in the following areas:

· Material valuation: When the valuation level is plant, the material prices are defined
for each plant. Each plant can have its own account determination.
· Inventory Management: The material stocks are managed within a plant.
· MRP: Material requirements are planned for each plant. Each plant has its own
MRP data. Analysis for materials planning can be made across plants.
· Production
· Costing: In costing, valuation prices are defined only within a plant.

At Henkel: In Henkel, the following will be defined as plants. This will be a part of MM
Module.

· Factory/Manufacturing Plant

o Karaikal Plant (plant code: 6I11)


o Coimbatore Plant (plant code: 6I14)
o Ambattur Plant (plant code: 6 I12)
o Tiljala Plant (plant code: 6I13)

· Depots/CFAs

o All 34 depots/CFAs will be defined as plants in SAP. There would be total 68


depots/CFAs defined as plants under HSIL and HMIL 2 company codes
respectively.

o HSIL will sell all the products to HMIL (Henkel Marketing India Ltd) plant and
HMIL plant will have the license to sell HSIL products to Customers.

o Special customer like Institutional customers, Govt / Semi Govt Parties


where tax liability is not there, customers will be served by HSIL directly
from Depot or from factory.

o For CSD customer HSIL will sell all the listed products from their factory or
from HSIL depots.

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PROJECT DISHA

E) Storage Location

A storage location is an organizational unit allowing differentiation between the various


stocks of a material in a plant. It is the place where stock is physically kept.

A storage location has the following attributes:

· There may be one or more storage locations within a 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.
· Physical inventory is carried out at storage location level.
· Storage locations are always created for a plant.

At Henkel: Following Storage location are being defined in factories for performing
sales and distribution activity

Bonded storage – FG
Bonded stores – Zeolite

In HSIL Depot plants following storage locations will be used for performing sales and
distribution activity

Saleable – 1st sale


Saleable – 2nd Sale
Damaged Goods – 1st sale
Damaged Goods – 2nd sale
Shortage
SKP – Saleable (only in SKP depots)
SKP – Damaged (only in SKP depots)
Promotional materials

In HMIL Depot, normally all the products will be stored in the 2 nd sales storage
location. Only when the intercompany, interstates sales happen, then those products
would be received at 1st sales storage location. (Detail see MM storage location
determination.)

During the delivery note creation, system will automatically identify whether the goods
available is for first sale or second sale based on the auto batch determination
according to first expired first out batch search strategy. The storage location definition
and configuration will be a part of MM Module.

F) Sales Organization

A Sales Organization is an organizational unit within Logistics that structures the


company according to its sales requirements. A sales organization is responsible for
selling materials and services. A sales organization has the following attributes:

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PROJECT DISHA

· Legally, a sales organization is included in exactly one company code.


· One or more plants can be assigned to one sales organization.

· A sales organization can have its own customer and material master data as well
as its own conditions and pricing.
· Sales employees can be assigned to a sales organization.
· All items in a sales & distribution document (sales order, delivery or a billing
document) belong to a sales organization.
· A sales organization is the highest summation level for sales statistics with its own
statistics currency.
· The sales organization is used as a selection criterion for the lists of sales
documents, delivery and billing due list and standard reports.
· A sales organization cannot share any master data with other sales organizations.
The master data must be created separately. The data for a distribution channel or
a division can however be created for several distribution channels or divisions.

At Henkel: In Henkel, there will be 3 Sales Organization as follows:

HSIL Henkel SPIC India Limited (8SIC)


HMIL (SKP) Henkel Marketing India Limited – SKP (8SIB)
HMIL Henkel Marketing India Limited (8SID)

G) Distribution Channel

A distribution channel is the channel through which saleable materials or services


reach customers. It includes wholesale, retail, and direct sales. A distribution channel
has the following attributes:

· Can allocate distribution channel to one or more sales organizations.


· Can define own master data for customers or materials as well as conditions and
pricing within a distribution channel.
· The distribution channel can be used as a selection criterion in lists and standard
reports.
· Can define common distribution channels for master data such as customers,
materials and conditions.

At Henkel: In Henkel, there will be 3 Distribution Channel, namely “D1”,”K1” & “D8”.

Distribution Channel “D1” – will be used for sales of branded UW and UK products.

Distribution Channel “K1” – will be used for sales of SKP products professional.

Distribution Channel “D8” – Will be used for sale of non-branded products.

Material and Customer master should have clear demarcation of distribution channel.

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PROJECT DISHA

H) Division

A division is an organizational unit based on responsibility for sales or profits from


saleable materials or services. It is used basically to group products at a higher level
such as UW, UK, etc. A division has the following attributes:

· Allocate a division to one or more sales organizations.


· Allocate a division to one or more distribution channels.
· A material is always assigned to one division only.
· Can define own master data within a division for customers as well as conditions
and pricing.
· Can define common divisions for master data such as customers and conditions.
· The division is used as a selection criterion for lists and standard reports.

At Henkel: In Henkel, the divisions such as UW, UK, etc have already been defined in
SAP. All the material masters will be subsequently assigned to these divisions.

In order to simplify the master data maintenance and order entry, one operating
division “00” would be used in sales area for UW and UK branded sales products
except SKP Products.

For SKP product “05” will be used as the division.

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PROJECT DISHA

I) Sales Area

A sales area is a specific combination of sales organization, distribution channel and


division. A sales area can be used as a selection criterion for lists and standard
reports.

Company Compa Description Sales Distribution Division


ny organizatio Channel
Code n
HSIL 4812 UW/UK 8SIC D1 00
Branded
HSIL 4812 UW/UK non- 8SIC D8 00
branded
HMIL (non-SKP) 4814 UW/UK 8SID D1 00
Branded
HMIL (non-SKP) 4814 UW/UK non- 8SID D8 00
branded
HMIL (SKP) 4814 Salon 8SIB K1 05
professional

J) Shipping Point

The shipping point is an organizational unit in Logistics that carries out shipping
processing. The shipping point is the part of the company responsible for the type of
shipping, the necessary shipping materials and the means of transport. The shipping
point has the following attributes:

· A shipping point can be allocated to several plants.


· A delivery is always initiated from exactly one shipping point.
· The shipping point is used as a selection criterion for lists of deliveries, the work
list deliveries, picking and goods issue.

At Henkel: In Henkel, each manufacturing plant will have separate shipping points.

In each Depot plant, each company’s plant would have its own shipping point.
Based on Hensap, the shipping point prefix is “NI”. The last 2 digit of shipping point
would follow the same last 2 digit of plant.
Eg: HSIL Chennai depot is 6IAB as plant code, the shipping point would be NIAB.

K) General Hierarchy

In Henkel, there would be 2 general hierarchies created for sales reporting purpose :

1) VP (Sales) Zonal Manager (ZM) Regional Sales Manager (RSM) Area Sales
Manager (ASM) Territory Sales Supervisor (TSS)/Territory Sales In-charge (TSI)/Sales
Officer (SO)

2) Head SKP – Region Head – ASM – Sales Officer

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PROJECT DISHA

L) Sales Enterprise Diagram

· Sales Area (SD)

Sales HSIL HMIL-SKP HMIL


Organization

Distribution
Sales Sales Sales
Channel

UW …
Division UW … UW …

 Sales Area

· Plant and Storage Location (MM)

HSIL Mfg
HMIL depot …..
Plant

Storage
FG … FG … FG …
Location
· Link between SD, MM and Accounting

Figure 1.4: Sales Enterprise Diagram

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PROJECT DISHA

1.2 General Settings

The General settings in SAP consist of the following:

A) Country

The country specific checks such as date format, decimal format, bank data, postal
data and control data needs to be maintained for a country. All the country codes are
already defined in SAP.

At Henkel: Enter the required date format, the decimal format, bank data, postal data
and control data in the country for India.

B) Region

The region is a further geographical classification within a country. The region is used
for: as a part of address, tax reporting in FI and pricing in SD (only for tax). The usage
of region can vary from country to country.

At Henkel: In Henkel, the region will be used to define the states in India.

C) County

County would be used to define sales territory under India country. At Henkel Sales
Territory, which is the geographical area where group, customers are located. In major
cities & districts, will have more than one territory and in upcountry one territory will
have more than one district.

D ) City Code

City Code would be used to define sales district under India country.
SAP has standard field of sales district but it’s client dependent, which is shared in the
whole region. As India has quite a lot sales districts, it’s recommended to use city code
to represent sales district which is country specific.

E) Unit of Measure (UOM)

This is the unit in which material is purchased, stocked, sold and moved. SAP has
standard unit of measures already defined.

At Henkel: The UOM such as Con (Consumable), Piece, Carton, Bag, MT and
Quintal will be defined in SAP for Henkel.

If want to get the report of inventory in KG, then the conversion of KG and CON
should be maintained in the system in the material master data.

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PROJECT DISHA

1.3 Classifications for Sales Masters

The Sales Masters in SAP consists of the following:

A) Customer Master

Customer is a business partner where company has a business relationship.


Customer master contain all data necessary for processing business transactions.
The system proposes the master data while processing business transactions.

The partner functions of customer are Sold-To party, Ship-To party, Bill-To party and
Payer. Depending on the requirement, a Sold-To party can have multiple Ship-To
parties, Bill-To parties or Payers. The customer master record has the following
structure:

· General Data

General data does not depend on the company code or the SD organization. It
applies to one business partner for all company codes and in all sales areas. It
includes customer name, address, telephone number, etc.

· Company Code Data

Company code data only applies to one company code. This data is only relevant
to Financial Accounting and includes account management data and insurance
data. Reconciliation account will be assigned based on customer group.

· Sales and Distribution Data

The data for one customer can differ for each sales area. The sales area is a
combination of sales organization, distribution channel and division. This data is
only relevant to Sales and Distribution, and includes pricing data, delivery priority,
shipping conditions, etc.

The customer code can be system generated or manually entered.

At Henkel: In Henkel, the customer code will be IDH number. The number range (and
whether internal or external number assignment) for Customer code has already been
defined in the system. The sales area data will be entered locally in India for created
IDH numbers. The credit limit for the Customer will also be entered locally.

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PROJECT DISHA

Following is some explanation of customer master data

1) Customer Groups

There are five fields in the customer master for classifying the customer. These fields
are Customer group 1, Customer group 2, Customer group 3, Customer group 4, and
Customer group 5.

At Henkel: In Henkel, Customer group 1, Customer group 2, and Customer group 3


will be used.

· Customer group 1

Code Customer Group 1


NI0 FRAGMENTED TRADE

NI1 MODERN TRADE


NI2 CHEK FRANCHISE
NI3 DOMESTIC CUSTOMER
NI4 EXPORT CUSTOMER
NI5 Hair Colours

· Customer group 2

Code Customer Group 2


NI0 Re-Distributor
NI1 Super Distributor
NI2 Stand-alone Super Markets
NI3 Super Market Chains
NI4 Hypermarket
NI5 Cash & Carry
NI6 Co-operative Stores
NI7 Groceries
NI8 Convenient Stores
NI9 Discount Stores
NIA Medical Stores
NIB Bulk
NIC Institution
NID Canteen Stores Department
Government / Semi-Government
NIE Parties
NIF Special Customer
Wholesaler (HSIL is wholesaler for
NIG DIL/CCCo)
NIH Scrap Customer
NII Salons
NIJ Salon Chains -- SKP
NIK Key Accounts --- SKP
NIL Group Company
NIM Kendriya Bhandar

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PROJECT DISHA
NIN Border Sec Force

Customer group 1 and Customer group 2 would be used to define Retail and
Super distributor’s margin, trade discount, Freight subsidy and tax code.

· Customer group 3
code Customer Group 3
NI0 Sales tax registered
NI1 Sales tax registration applied
NI2 Not registered

Customer group 3 would be used to find out whether TOT should be reimbursed
against an additional discount to the Customer (in states where MPT is applicable).

Apart from the above field customer group available in sales area data while creating
customer master will be used for document layout printing.

2 ) Sales Office

Sales office code Office description

NIAN North Zone


NIAS South Zone
NIAE East Zone
NIAW West Zone

At Henkel: The zonal office would be defined as sales office.

3) Sales Employee

The sales employee is assigned to the customer.

At Henkel: The TSI/TSS/SO will be defined as sales employees in SAP. Each


customer will be assigned sales employee as a partner function.

In the case of customer having more than one TSS / TSI, the relevant TSS/TSI would
be assigned to the customers. During the time of order creation, order processor need
to select TSS/TSI manually

4) Terms of Payment

The terms of payment are defined for the customers. Aspects of accounting such as
due date for net payment in the invoice is defined and managed in FI module. The
short texts for the terms of payment can be stored for SD.

At Henkel: This will be a part of FI Module.

Following shall be the Payment terms in Henkel

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PROJECT DISHA

Payment term
code Payment Description
ZH0A India - Cheque – Immediate payment
ZH0B India - Demand Draft / Pay order in Advance
ZH0C India - Invoice against Credit Memo
ZH0D India - Within 1 days from Invoice Date
ZH0E India - Within 3 days from Invoice Date
ZH0F India - Within 4 days from Invoice Date
ZH0G India - Within 5 days from Invoice Date
ZH0H India - Within 6 days from Invoice Date
ZH0I India - Within 7 days from Invoice Date
ZH0J India - Within 10 days from Invoice Date
ZH0K India - Within 15 days from Invoice Date
ZH0L India - Within 21 days from Invoice Date
ZH0M India - Within 30 days from Invoice Date
ZH0N India - Within 45 days from Invoice Date
ZH0O India - L/C at sight
ZH0P India - L/C 7 days
ZH0Q India - L/C 10 days
ZH0R India - L/C 15 days
ZH0S India - L/C 30 days
ZH0T India - Against Bill Discounting.

Some remarks of payment term:

· Based on payment terms 1 & 2, the system will automatically pick up 0.5% special
discount during sales order creation for RD and SD customers. The condition type
is ZISD.

· Demart chain customer should be given cash discount of 0.75% as the payment
terms has been defined to them as “Against Delivery”.

· There would be different discount percentage as per the customer type 2, system
would be in a position to update the same while doing billing to these customers.

· Chek Franchise customers will not be given a cash discount of 0.5% when the
payment terms are selected as Demand Draft or Credit Note.
To address the above – New condition table to be created with combinations of
customer group 1 & group 2, payment terms. These condition tables are to be
linked with condition type. System will automatically pick up the discount based on
the terms of payment.
Maintain an access sequence of customer group 1/customer group 2/ payment
term which has been assigned to condition type of ZISD

 For SKP product Sales, 0.5% Discount on account of Demand Draft payment or
Credit note settlement would not be considered.

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PROJECT DISHA
To address this - Condition records for 0.5% discount on account of DD or Credit note
settlement will not be maintained in the condition table for SKP customers

5) Incoterms

INternational COmmercial TERMS – Codification of international rules for the


interpretation of the most commonly used terms in international trade.

The Incoterms are specified for customers. It defines the terms of sale and the
passing of risks for sales. The Incoterms can be such as Ex Works (EXW), Free on
Board (FOB), etc.

In Henkel, normal customer would use normal Incoterm. For those intercompany
customers, the truck type would be defined in Incoterms in order to capture the
primary freight in the intra company stock transport order. The following truck types
are defined in incoterms.

ZX1 From plant to plant - 9MT


ZX2 From plant to plant - 17MT
ZX3 From plant to plant – PartLoad

B) Material Master

Products and services are combined in SAP under the term material. All information
necessary for the management of a material and its stocks, as well as its use, is
maintained in the material master. Material master contain all data necessary for
processing business transactions. The system proposes the master data while
processing business transactions. The material master record has the following
structure:

· General Data

General data in a material master record is identical for every sales organization,
plant and storage location. General data contains the material number, description,
units of measure, value, weight, volume, divisions, etc.

· Sales and Distribution Data

Sales and distribution data in a material master record is defined for a specific
sales organization and distribution channel. The delivering plant, the assignment to
the sales group, grouping terms for price agreements, sales texts, etc are included
in sales and distribution data. The fact that a material is linked to a distribution
channel allows the material to be sold with different conditions through the various
distribution channels. Sales and distribution data is divided into data that depends
on the sales organization and data that depends on the plant:

o Sales organization/distribution channel data

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PROJECT DISHA
This data includes the delivering plant, the sales unit, the MOQ, minimum
delivery quantity, etc.

o Plant data

This data applies to a plant and all its storage locations. It includes data
such as MRP data, safety stock quantity, the ROL, shipping processing
time, etc.

The material code can be system generated or manually entered.

At Henkel: In Henkel, the material code will be IDH number. The number range (and
whether internal or external number assignment) for Material code has already been
defined in the system. The sales and distribution data will be entered locally in India
for created IDH numbers. The profit center and division will be maintained in material
master.

For non SKP product, each IDH no. would be applied per different SKU per different
MRP price.

1) Stock Keeping Unit ( SKU )


As in Henkel India, the IDH material is based on the MRP price, so the SKU
information has been maintained in the material master data classification view. In the
future, if there is new SKU come, users could add the SKU information by themselves.

Material Class : 001


Class name: Z47100000000000000
Characteristic name : ZZ0484_SKU ( Henkel India SKU )

For SKP product, one IDH no. would be applied for one SKU even different MRP
price, as the IDH is already there for one SKU in Germany. (detail to see the batch
determination )

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2) Product Hierarchy

The product hierarchies are defined for statistical analysis or pricing. The product
hierarchy groups materials by combining different characteristics. Each characteristic
is represented by a specific product hierarchy level.

At Henkel: In Henkel, there are 5 levels in product hierarchy. The existing product
hierarchies in SAP will be used at Henkel. The level wise characteristics are Division,
SBU, Category, Brand and Product.

3) Material Groups

There are five fields in the material master for classifying the material. These fields are
Material group 1, Material group 2, Material group 3, Material group 4, and Material
group 5.

At Henkel: In Henkel, Material group 1 and 2 will be used.

· Material group 1 will be used to classify product categories such as Toilet Soap,
etc. This grouping will be used to print Sales Tax Register in the required format.

· Material group2 will be used to classify product into two categories whether MPT is
applicable on second sale and subsequent sale.

Material group 1

Code Description
NI1 AFTER SHAVE
NI2 DEODORNATS
NI3 DETERGENT BAR
NI4 DETERGENT LIQUID
NI5 DETERGENT POWDER
NI6 FLOOR CLEANER
NI7 HAIR OIL
NI8 SCOURING BAR
NI9 SHAVING CREAM
NIA TALCUM POWDER
NIB TOILET SOAP
NIC TOOTH PASTE
NID HAIR COLOUR
NIE HAIR CONDITIONER
NIF SHAMPOO
NIG ZEOLITE
NIH SPECKLES
NII AXION
NIJ AQUALITE
NIK SCRAP
NIL FORM

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PROJECT DISHA
NIM TREATMENT
NIN SETTING
NIO HAIR SPRAY
NIP GEL/CREAM/WAX
NIQ OTHERS
NIR TOILET CLEANER

Material group2

Code Description
NI1 MPT applicable on second and subsequent sale
NI2 MPT not applicable on second and subsequent sale

4) Material Pricing group

The material pricing group would be maintained as “01” (normal) for all the material in
order to capture the second freight calculation automatically based on the total weight
per each delivery.

C) General Master data

1) Sales Tax Code

Sales tax code represents the specifications used for calculating and displaying tax. It
will have sales tax rates for each combination of LST and any other subsequent tax as
applicable or CST. Separate sales tax code should be maintained. The sales tax code
is defined for each country in which one of company codes is located.

At Henkel: This will be a part of FI/SD Module. Different sales tax codes will be
defined in Henkel to cater to different requirement.

Tax Relevancy of Master Records

The tax relevance for customers and materials can be defined to determine the tax
code in pricing. There are separate tax classifications for customers and tax
classifications for materials. The respective tax classification is assigned in the
customer and material master.

At Henkel: Depending on the sales tax codes, the customer and material tax
classification will be defined. For example, full tax, tax exempt classification for
material; and tax with Form C, tax without Form, tax exempt classification and
concession tax, for customer.

Following is the sales tax code has been defined in Finance.

A0 Output Excise 0% Sales Tax 0%


A1 Output Excise 0% Local ST 4% SC 10%

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A2 Output Excise 0% Local ST 8%
A3 Output Excise 0% Local ST 8% SC 5%
A4 Output Excise 0% Local ST 8% SC 10%
A5 Output Excise 0% Local ST 8% SC 15%
A6 Output Excise 0% Local ST 10%
A7 Output Excise 0% Local ST 10% SC 15%
A8 Output Excise 0% Local ST 12%
A9 Output Excise 0% Local ST 12% SC 5%
B1 Output Excise 0% Local ST 12% SC 10%
B2 Output Excise 0% Local ST 12% SC 15%
B3 Output Excise 0% Local ST 13%
B4 Output Excise 0% Local ST 13% SC 10%
B5 Output Excise 0% Local ST 15%
B6 Output Excise 0% Local ST 15% SC 10%
B7 Output Excise 0% Local ST 16%
B8 Output Excise 0% Local ST 16% SC 5%
B9 Output Excise 0% Local ST 17% SC 10%
C0 Output Excise 0% CST 0%
C1 Output Excise 0% CST 3% Against Form 17
C2 Output Excise 0% CST 4% Against Form C
C3 Output Excise 0% CST 10%
D1 Output Excise 0% Local ST 20%
D2 Output Excise 0% Local ST 20% SC 5%
D3 Output Excise 0% Local ST 20% SC 10%
D4 Output Excise 0% Local ST 20% SC 15%
D5 Output Excise 0% CSD Tax WB 7%
D6 Output Excise 0% CSD Tax MH 1%
E1 Output Excise 16% ST 0%
E2 Output Excise 16% CST 4%
E3 Output Excise 16% CST 10%
E4 Output Excise 16% LST 20% SC 5%
E5 Output Excise 16% LST 16% SC 5%
E6 Output Excise 16% LST 12%
E7 Output Excise 16% LST 15% SC 10%
E8 Output Excise 16% LST 17% SC 10%
F1 Output Excise 0% LST 10% With VAT
F2 Output Excise 0% LST 12% With VAT
L1 Output Excise 0% RST 0.5%
L2 Output Excise 0% RST 1%
L3 Output Excise 0% RST 1.5%

The tax code is captured via the condition type of UTXJ. The UTXJ will be determined
based on the following condition tables:

· Country / Region of Delivering Plant / Region of Customer / Plant / Customer Tax


Classification / Material Tax Classification / Storage location / Material Group2 /
Customer group 3 / Material Group 1 / Customer group 2
· Export Taxes

2) Free Goods

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PROJECT DISHA
In Henkel, there are 2 scenarios of free goods.

1) Gross up
If the free goods are same IDH no. as main product, condition type ZIF1 would be
maintained as the percentage of free goods.

2) Cross promotion ( packed together )


If the free goods are packed together with main product, condition type ZIF3
would be maintained as the cost of the free goods attached with main product. So
that the cost of free goods could go to line 12 and line 17 in CO-PA.

3) Sales BOM

There would be 3 kinds of sales bom used in Henkel.

1) Cross promotion ( packed separately )

Eg: buy 1 Henko bar and get 1 margo free ( packed separately )
Sales bom would be created in a way that Henko bar would be main item and
margo would be sub item. Both of them would be inventory items. Delivery and
post goods issue would be on both main item and sub item.
There is a condition type ZIF4 copied from VPRS cost of sub item ( margo free )
automatically in the billing document.

The accounting entry would be following during the billing:


Dr AR customer
Cr sales revenue ( main item’s sales price )
Dr 4501030 ( cost of sub item )
Cr 893010

CO-PA would capture the cost of Margo free as line 17 of Henko bar.

2) COMBI- pack ( non- inventory )

Sales BOM is used where different products are put together as a product kit and
sold. Normally the main item wouldn’t have inventory and value. The main Item will
not be maintained a sales price separately while sub items will be priced
individually. The sales cost is happened at sub items. And the main item’s price are
the total sales price of sub items and shown in the invoice.

At Henkel - This will be used for some specific customers like Metro, as sales tax
varies based on product category - FI needs to revert back.

3) COMBI- pack ( has inventory )

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PROJECT DISHA
Sales bom would be maintained in a way that main item has inventory, value and
sales price, while sub items are only a non-inventory items for information purpose.
Sales cost and sales revenue are both based on main item. This will be used when
the Combi-pack is delivered from factory.
Following is the item categories used in different sales bom scenario.

Sales bom Item Item category of Item


category Main item category of
group in sub item
material
master
data
1 Cross promotion ZI01 ZIAM ZIAN
( packed separately )
2 Combi-pack ZI02 ZIAH ZIAI
( non-inventory) ( inventory )
3 Combi-pack ZI03 ZIAK ZIAL
( inventory item ) ( non-
inventory )

4) Condition Records for Pricing and Tax Codes

Using the condition types in pricing, you define which types of prices, discounts,
surcharge, taxes, etc exist in the system. The condition types can be specific to any
variables such as customer-material, material, customer, state, etc. The condition
records can be maintained for these variables for a particular condition type.

At Henkel: Depending on the requirement, different condition records will be


maintained for different condition types such as prices, discounts, taxes, freight, etc.

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1.4 Basic Functions in Sales

The Sales Basic Functions in SAP consists of the following:

A) Pricing

The pricing is used to calculate the price in sales order and billing. This section
describes how pricing is controlled. The following aspects are of significance for
controlling pricing:

· Condition type

Using the condition types, you define which types of prices, discounts, surcharge,
taxes, etc exist in the system. The condition types can be specific to any variables
such as customer-material, material, customer, state, etc.

· Condition table

In the condition table, you specify the combination of fields for which you want to
create a condition record.

· Access sequence

The access sequence is a search strategy with which the system searches for a
valid condition record for each condition type during pricing. The access sequence
refers to the fields which are relevant for pricing using the condition tables
contained in the access sequence. Using access sequence, you can control that
the system first of all searches for a customer-specific price and then for a price in
the list price.

· Pricing procedure

In the pricing procedure you specify the condition types which are to be used in
pricing. At the same time, you define the sequence in which the condition types are
to be brought into play.

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At Henkel: In Henkel, the following pricing procedures will be used:

Pricing Procedure Description


Z48401 Direct Sale MRP
Z48402 Direct Sale List Price
Z48403 Direct Sale MRP MPT
Z48404 Direct Sale List Price MPT
Z48407 Direct Sale MRP Kerala
Z48408 Direct Sale List Price Kerala
Z48410 India Export
Z48412 India Inter Co. Sales
Z48413 India Factory Sales Domestic
Z48415 India Free of Charge Factory
Z48416 India Stock Transfer
Z48418 India Third Party Sales
Z48419 India Stock Transfer Turnover

B) Availability Check and Transfer of Requirement

For every item of a sales order or delivery, the system checks availability based on
Available-To-Promise (ATP). It is possible to control the availability check for sales
documents and deliveries separately. For example, you can control the scope of the
checks or whether the replenishment lead-time to be taken into account.

By means of the transfer of requirements, the MRP department is informed about the
quantities and deadlines by which incoming orders should be delivered. The system
checks the availability of the goods based on the requested delivery date of the
customer and creates MRP records which contain all necessary information for
passing on to materials planning. The transfer of requirements ensures that the goods
are available in time for the delivery. Materials planning transfer the reported
requirements and create production orders or purchase requisitions from them.

At Henkel: In Henkel, the availability check will be carried out on the basis of ATP
during sales order and delivery creation.

While doing ATP check, system will be made to recognize only goods which are in
transit, i.e finished goods, dispatched from Factory, LLM or Toll Manufacturer to that
specific plant. Open Purchase order or Open Stock Transfer Order will not be
considered.

The following will be considered for the transfer of requirement:

· As mentioned in PP Module, the monthly PIR will be entered at depot level in


corporate office through upload option, data will be maintained in excel and
MRP will be run at depot thereby creating Stock Transport

Requisition (STR). This STR would be converted to Stock Transport Order (STO)
automatically.

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· The sales order generated at deport for RD, SD, CSD or Modern Trade customer
will not pass on the requirement to MRP since the same has been considered in
monthly PIR.

· When there is an additional requirement at depot for Exports, Third Party or


Institutions, the sales order will be generated where the system will create STR
automatically after running MRP based on sales order. This STR would be
subsequently converted to STO automatically .

· When there is an additional requirement at factory for Exports, Third Party or


Institutions, the sales order will be generated where the requirement will directly go
to MRP.

C) Credit Management

Credit management enables to monitor, evaluate and control credit situations and
credit allocations. The credit limit can be checked at either sales order level, delivery
level or post goods issue level. The document creation can be either blocked or
alerted with warning message when it exceeds the credit limit. Later on, if required,
the authorized person can release the same document for billing.

The risk management is used to allow low risk customers, if required, surpass their
credit limit at the time of sales order creation.

At Henkel: all customers will be classified either as low or high risk customer based
on payment performance of customers.

There are 3 types of credit checks in the system: Simple, Static and Dynamic credit
checks.

Simple Credit Check:- Checks for Open AR, Open Sales Order, Open Delivery and
Open Billing items.

Static Credit Check:- Open AR items.

Dynamic Credit Check:- Checks for Open AR, Open Sales Order – With time Horizon,
Open Delivery and Open Billing items.

At Henkel: In Henkel, the credit check will be both static and dynamic.
If the customer is low risk category, if the credit limit exceeds, the order and delivery
could be created, but the post goods issue would be blocked. Billing wouldn’t be
generated.

If the customer is high risk category, if the credit limit exceeds, the order could be
created, but would be blocked for further processing.

All of above requires authorized person to release either sales order or delivery note.

D) Batch Management

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Batch is a subset of the total quantity of a material in stock, managed separately from
other subsets of the same material. Since batch is specific to material, it is activated in
the material master. During delivery, if required, the system can pick up the batches
automatically based on a rule such as first Manufacturer First Out (FMFO), etc.

At Henkel: In Henkel, all materials will be batch managed.

If non-SKP product, batch determination would follow Henkel standard.


Batch no. is 10 digits.

Eg: PPYDDDNNNN
PP = Batch prefix by plantY = Last digit of the year
D = Day of the year ( eg: 365 for 31/12 )
N = Running number

If SKP product, the batch will be defined at such a way that separate MRP (Maximum
Retail Price) could be maintained for finished goods. There will be a program to create
MRP condition records for sales pricing based on batch numbers. This program will be
scheduled to run on daily basis.

Eg = PP DDDDDD NN
PP = Batch prefix by plan
D = MRP price (6 digit) N
= running number

The batches will be picked up automatically based on FIRST EXPRIED FIRST OUT
during delivery creation.

E) Text Control

SAP provides the option of entering the texts in customer master, and sales
documents such as sales order, delivery and billing document at header and item
level. This texts can be used either for any information or to print on any layout such
as Invoice, Delivery Challan, etc. The text determination works on the basis of
condition technique.

At Henkel: In Henkel, the text field will be required in the delivery and billing
document at header level to print it on Delivery Challan/ Billing.
In the billing header text, the following text ID would be shown.

Text ID Text shown in Billing doc.


ZI01 DD No. ( Demand Draft No. )
ZI02 Cheque No.
ZI03 Amount
ZI04 Mode Of Transport

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PROJECT DISHA
ZI05 Freight
ZI06 Vehicle No.
ZI07 Transporter Name
ZI08 LR/GC No.
ZI09 Seal Nos.

This text would be input manually during billing generation and it would be shown in
the invoice layout.

F) Number range

SAP standard number range is per document type. As there is the statutory
requirement, that the number range of invoice should be different per year and per
Depot.

While the other document type would share the number range per different company
code per different function in order to standardize and organize the document.

Eg: Sales order would share the same number range within HMIL Depot.
Delivery Note would share the same number range within HMIL Depot.

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SD: TO-BE Business Processes

1.5 Standard Sales Processing in SAP

The SD module allows executing different business transactions based on sales


documents defined in the system. These sales documents are grouped into four
categories:

· Pre-sales documents: Inquiries and Quotations


· Sales orders
· Complaints, such as Free-Of-Charge deliveries, Credit and Debit memo requests.
· Returns

During sales order processing, the system carries out basic functions such as:

· Monitoring sales transactions


· Checking for availability
· Transferring requirements to materials planning (MRP)
· Delivery scheduling
· Calculating pricing and taxes
· Checking credit limits

Depending on how the system is configured, these functions may be completely


automated or may also require some manual processing.

There is a document flow function in the system. The document flow shows the
entire chain of documents – inquiry, quotation, sales order, delivery, invoice,
accounting document and subsequent delivery FOC. It is nothing but the flow of data
from one document to another document.

When a sales document is created, the system proposes much of the data from
master records, preceding documents and automatically determined by the system.

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PROJECT DISHA

The following graphic shows how the various types of sales documents are inter-
related and how data subsequently flows into shipping and billing documents.

Figure 1.5: Sales Document Flow

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PROJECT DISHA

The following describes different sales documents in SAP for SD Module:

Information of previous 3 months sales average and corresponding period of last year
sales data, material wise will be displayed as Z report for Sales Planning. Report
development to be done in SD Module.

A) Inquiry/Quotation

Customer inquiries and quotation to the customer can be entered and monitored in
the system.

For example, a customer inquires about the product details, price and delivery date.
The inquiry is therefore a request from the customer to provide with sales quotation.

A quotation presents the customer with a legally binding offer for delivering a product
or providing a service within certain fixed conditions.

The Inquiry and Quotation can be of different types (document types) and there can
be different number ranges for each document type.

The Inquiry and Quotation creation is same as sales order creation.

B) Sales Order

The sales order is a contractual agreement between a sales organization and a sold-
to party about delivering products or providing a service for defined prices, quantities
and times.

There are some important fields in sales order to enter order reason (in case of
returns), reason for rejection (in case of rejecting and closing the order) and reason for
blocking sales document from creating subsequent delivery and billing document (for
credit limit control or any other reason). If the sales order is blocked, it can be released
by the authorized person.

The system automatically confirms only the available quantity (based on ATP as per
the criteria defined in page 51) from the sales order quantity at the time of sales order
creation. If the available quantity is more than order quantity then system confirms the
entire order quantity. The system creates delivery for confirmed quantity and not for
the total order quantity of the sales order. Later on, to confirm the non-confirmed
quantity in sales order after stock is made available the backorder processing is used.

The Sales Order can be of different types (document types) and there can be different
number ranges for each document type further depending on the plant.

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C) Backorder Processing

Using backorder processing, you can list sales documents relevant for requirements
for particular materials and confirm them manually. You can assign ATP stock to
outstanding order quantities. In addition, you can withdraw already confirmed
quantities and reassign them to different items.

In Henkel, for sale from depot, Back order processing will be disabled. Delivery Note,
Picking, Post Good Issue and Billing will take place only for available stocks. In case,
if the order quantity is more than the stock quantity, then the balance order quantity
should be cancelled manually.

ATP check to be performed as per the criteria given in page 51.

D) Complaints

The complaint creation is same as sales order creation. The following processes are
available in complaints processing:

· Free-of-Charge (FOC) Delivery

Although this is not complaint, it is offered as a part of this component. A FOC


delivery is used to send a customer a free sample of products. It will only change
the Inventory valuation. There would be billing document generated with 1 INR as
the invoice value in order to post the cost to CO-PA. The FI reverse entry would be
input at the month end.

· Free-of-Charge (FOC) Subsequent Delivery

If the customer complains (for example, that they received the wrong quantity) you
can send them the extra material later FOC. This FOC subsequent delivery always
refers to a sales order. It will only change the Inventory valuation.

· Returns

If the customer complains, for instance, that the goods were faulty, you take the
goods back to check them. Once you have checked the goods, you can implement
one of the following activities:

o Send the customer a credit memo


o Make a subsequent delivery of the goods, free of charge
o No activity (in case of stock transfer)

· Credit Memo Requests

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PROJECT DISHA
If the customer complains that the price was miscalculated (for example, too high)
you request a credit memo for the appropriate sum, and you do not take the goods
back.

· Debit Memo Requests

If prices were calculated as too low, you request a debit memo.

There are some important fields in the complaints to enter order reason (in case of
returns), reason for rejection (in case of rejecting and closing the complaint) and
reason for blocking complaint from creating subsequent document. If the complaint is
blocked, it can as well be released by the authorized person.

The Complaint can be of different types (document types) and there can be different
number ranges for each document type further depending on the plant.

E) Delivery

Delivery or shipping is an important part of the logistics chain in which guaranteed


customer service and distribution planning support play major roles. The delivery
supports the following functions, which include but are not limited to:

· Deadline monitoring for reference documents due for shipment (sales orders and
stock transport orders, for instance)
· Creating and processing outbound deliveries
· Planning and monitoring of work-lists for shipping activities
· Monitoring material availability and processing outstanding orders
· Picking
· Packing deliveries
· Processing goods issue
· FMFO (First Manufactured First Out) will be followed at factory and depot

Whenever a post goods issue is done for a delivery, the system carries out the
following activities:

o Stock of material is reduced by the delivery quantity


o Value changes are posted to the balance sheet account in inventory
accounting
o Requirements are reduced by the delivery quantity
o Goods issue posting is automatically recorded in the document flow

A list of deliveries posted as goods issue in the shipping department could be used to
form a work-list for the billing department.

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The delivery can be of different types (document types) and there can be different
number ranges for each document type further depending on the plant.

While printing the delivery note, information like the PKD and Batch number should be
printed in order to pick up the correct materials at the storage location.

F) Billing

Billing represents the final processing stage for a business transaction in SD.
Information on billing is available at every stage of order processing and delivery
processing. This component includes the following functions:

· Creation of:
o Invoices based on deliveries or services
o Issue credit and debit memos
o Proforma invoices
o Inter Company Billing
· Cancel billing transactions
· Comprehensive pricing functions
· Transfer billing data to FI

The billing document can be created with reference to either sales order or delivery.
Integration with accounting consists of forwarding billing data to Financial Accounting
(FI – AR) and Controlling (CO). When a billing document is created, the system
automatically creates all relevant accounting documents such as General Ledger,
Profit Center, Profitability Analysis, Cost Accounting and Revenue Accounting. There
is also a provision to block billing documents for accounting. Later on, the same can
be released for accounting by the authorized person.

While printing invoice document, only Net Wt to be displayed in the invoice document.

Inter-company stock transport processing

A purchasing organization which is assigned to the ordering company code creates


a purchase order ordering goods from a plant assigned to another company code.
The plant in the delivering company code delivers the goods to the plant for which
the purchasing organization ordered the goods.

Because the two companies balance their accounts independently, the delivering
company must bill the ordering company for the goods. The receiving company would
book the account entry via Logistic invoice verification.

G) Excise Invoice

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PROJECT DISHA
Excise is a part of Country India Version (CIN). Excise invoice is a document that acts
as the proof of payment of excise duty and is required for the customer to take
CENVAT credit on the item. There are three different procedures for creating excise
invoices:

· Sales direct form factory

This procedure is for when you sell manufactured goods straight from the factory at
which they are produces, in which case you levy excise duty when the goods leave
the factory on their way to the customer.

If, when you send the goods to the customer, you enclose the commercial invoice
(billing document), you create the excise invoice with reference to the commercial
invoice.

· Sales from depots

A depot is a site at which the goods are stored, away from the factory at which they
are produced. In this procedure, you have to levy the excise duty when you
transfer the goods from the factory to the depot, and then make sure this is passed
on to the customer when it makes a purchase. The excise invoice is created based
on delivery document, if the Depot maintains RG23D Register. If The Depot does
not maintain the above register the Excise invoice should not be created and the
customer receives the invoice without excise.

· Exports

Exports under bond are not subject to excise duty while exports not under bond
are handled like any other goods issue. No excise Invoice is created for exports as
the RG1 gets updated automatically after delivery and ARE1 IS handled manually
out of the system.

· Sales (other goods movements)

Some other goods movements may also require you to create an excise invoice
with reference to other documents. The SAP system offers separate functions for
these purposes.

Excise invoices have two numbers: an internal document number, which is assigned
immediately you create an excise invoice; and an excise invoice number, which is not
assigned until you have verified and posted it.

A series group governs each number range. You must create at least one series group
in order to number the excise invoices. If you need more than one number range, you
must create the corresponding number of series groups.

H) Stock Transport Order (STO)

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PROJECT DISHA
Stock Transport Order (STO) is used to transfer the stock from one plant to another
plant. Both the plants can belong to different company codes. There could be the
following two different cases:

· STO with Delivery

This type of stock transfer will be used when both the plants belong to same
company code. The following components are involved in this type of stock
transfer:

o Create a stock transfer order in Purchasing module based on already


generated purchase requisition
o Create a delivery in Sales module against purchase order and post goods
issue
o Do a goods receipt against purchase order in Inventory Management
module
o Create excise invoice at the issuing factory and capture excise invoice at
the depot where RG23D is maintained

· Inter Company STO with Delivery and Billing Document

This type of stock transfer will be used when the plants belong to different
company codes. The following components are involved in this type of stock
transfer:

o Create a inter-company stock transport order in Purchasing module based


on already generated purchase requisition
o Create a delivery in Sales module against purchase order and post goods
issue
o Create a billing document in Sales module against a delivery
o Do a goods receipt against purchase order in Inventory Management
module
o Do the invoice verification at invoice receipt in Purchasing module
o Create excise invoice at the issuing factory and capture excise invoice at
the depot where RG23D is maintained

If the 2 companies’ Depot are physically at same location. The goods receipt
and post goods issue could be combined into one step.

The documents can be of different types (document types) and there can be different
number ranges for each document type further depending on the plant.

1.6 Standard Excise Processing in CIN

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PROJECT DISHA
The Country India Version (CIN) is designed for use by businesses with operations in
India. As well as the generic SAP system functions, it comprises functions designed
specifically for India, and a country template to help customize the system according
to local requirements.

For SAP R/3 4.6C version, the CIN version used will be 4.0A.

In CIN, SD component handles sales processes as found in India. In addition to the


generic functions, it allows to:

· Handle CENVAT in sales processes

The system calculates excise on sales and creates excise invoices as required and
makes the appropriate postings to CENVAT accounts.

It covers sales from factories, sales from depots, and offers functions for other
types of goods movements; it also covers sales to export-oriented units and export
sales.

· Record concession and exemption forms sent by customers

· Make adjustment postings to CENVAT accounts

In India, excise duty is a tax on the manufacture of goods that is levied when goods
leave the place of manufacture. Manufacturers can set off the duty paid on input
materials against their output duty, a procedure know as central value-added tax
(CENVAT).

The prerequisite for doing any excise transaction is to define the following:

· Excise Registration Id (registration details for company) and assignment


· Excise Group (for maintaining different excise registers) and assignment
· Series Group (for maintaining different number ranges for excise document) and
assignment

· G/L account assignment for excise transactions


· Number ranges for excise invoice and excise registers

A) Excise Masters

In CIN, the excise masters consist of the following:

· Chapter ID

This is to define the chapter IDs and corresponding descriptions as described in


the excise tariff structure.

· Material and Chapter ID combination

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PROJECT DISHA
For each material, you specify chapter ID, material type (whether RM, capital
goods or a FG), etc.

· Material Assessable Value

You maintain the net dealer price and the assessable value of all materials that you
send to the subcontractors or for any other issue. These values serve as the
excise base value when the materials are issued.

· CENVAT determination

You specify which raw materials are used to product which finished (or semi-
finished) goods in this master. The system uses this information to determine
whether you can claim a CENVAT credit for a material.

· Customer Master (Excise Data)

The customer master will have excise details such as customer’s tax registration
numbers and customer excise duty indicator.

· Plant Master (Excise Data)

The plant master will have excise details such as plant’s tax registration numbers
and plant excise duty indicator.

· Excise Indicator for Plant and Customer

In this master, you define final excise duty indicator for a combination of plant and
customer excise duty indicators.

Excise Invoice (Outgoing)


Definition

A business document, in India, that you prepare when you issue excisable goods from
a manufacturing plant, for example:

· To be sold to a customer
· To be transferred to another of your plants

The excise invoice lists the goods that you have issued and states how much excise
duty applies. Your customer uses the excise invoice to claim back the excise that it
has paid from the excise authorities.

Use

In the R/3 System, there are three different procedures for creating excise invoices

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PROJECT DISHA
· Sales direct from the factory

This procedure is for when you sell manufactured goods straight from the
factory at which they were produced, in which case you levy excise duty when
the goods leave the factory on their way to the customer.

If, when you send the goods to the customer, you enclose the commercial
invoice, you create the excise invoice with reference to the commercial invoice.
If you want to send the commercial invoice after you have dispatched the
goods, however, you create the excise invoice with reference to a pro forma
commercial invoice. For more information about these procedures, see Sales
from Factories.

As well as creating excise invoices individually, you can also create them in
batches (see Creation of Excise Invoices in Batches).

· Sales from depots

A depot is a site at which the goods are stored, away from the factory at which
they were produced. In this procedure, you have to levy the excise duty when
you transfer the goods from the factory to the depot, and then make sure this is
passed on to the customer when it makes a purchase. For more information,
see Sales from Depots.

The question of passing of duty does not arise in our existing method of
operations. The only exemption is our Chennai, Bhiwandi 1, Bhiwandi 2,
Kapnpur and Tiljala depots which maintain RG23D Register.

· Sales (other goods movements)

Some other goods movements may also require you to create an excise invoice
with reference to other documents. The R/3 System offers separate functions
for these purposes (see Other Outward Movements).

Structure

Numbering of Excise Invoices

Outgoing excise invoices have two numbers: an internal document number, which is
assigned immediately you create an excise invoice; and an excise invoice number,
which is not assigned until you have verified and posted it.

As far as the excise invoice number is concerned, you have to number your outgoing
excise invoices in sequential order, starting each year on 1 April. You must notify the
excise authority of the jurisdiction of the invoicing location. The serial number must be
printed on each page of the excise invoice.

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PROJECT DISHA
A series group governs each number range. You must create at least one series
group in order to be able to number the excise invoices. If you need more than one
number range, you must create the corresponding number of series groups. You do
so in Customizing.

Number of Line Items Per Excise Invoice

Some states allow you to include only a limited number of items for each page of an
excise invoice (for example, if the excise invoices are to be printed on pre numbered
forms). You can customize the system so that it prints the excise invoice accordingly,
in Customizing.

Pricing

Use

When you create a sales document, the system automatically determines the price of
the goods you are selling, including any excise duties and sales taxes.

Features

These pricing procedures determine the net price (or the assessable value, if there is
one) and then calculate all forms of excise duties and sales taxes on the goods.

Excise Duties

For each form of excise duty, there are three separate condition types as follows:

Excise duty Ad valorem Specific Total*

Basic JEXP JEXQ JEXT

Additional JEAP JEAQ JEAT

Special JESP JESQ JEST

Cess JCEP JCEQ JCET

* These condition types show, for example, the total basic excise duty on the goods
(ad valorem duty plus specific duty). It is the values in these condition types that the
system uses in follow-on documents.

All of these condition types are discount surcharge conditions and are posted using
the accounting key EXD.

The excise conditions are determined using the access sequence JEXC. This access
sequence contains the following condition tables, so that you can create excise
condition records for all of the following combinations:

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PROJECT DISHA
Table Conditions

362 Country, chapter ID*

357 Country, plant, chapter ID

358 Country, plant, chapter ID, material

371 Country, plant, chapter ID, ship-to party

369 Country, plant, chapter ID, customer tax classification

372 Sales organization, reference document and item

* The chapter ID is stored in the control code field. When you enter a material's
chapter ID in the material master, the system copies the chapter ID to the control code
field. When you create a condition record, the field name is control code.

If you want to create condition records for different types of customers, for example,
those that qualify for concessional tax rates and those that don't, you can define
customer tax classifications in Customizing and create condition records for each
classification.

Sales Taxes

For central sales tax and local sales tax, there are two condition records each, one for
the basic tax (and one for surcharges. These are all tax conditions and are posted with
the account key. When you create a condition record for the sales taxes, you must
specify a tax code that you want the tax to be posted under in Financial Accounting
(FI).

The system determines the central sales tax using the access sequence for UTXJ,
and local sales tax using the access sequence JIND. Both access sequences use the
following condition tables:

Table Conditions

359 Plant, material group

367 Country, plant, region, material


368 Country, region of delivering plant, region of ship-to party, customer tax
classification, material tax classification

Automatic Creation of Excise Invoices

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PROJECT DISHA
Use

The R/3 System can automatically create an outgoing excise invoice for you
immediately you post a commercial invoice (or a pro forma invoice) for a customer
sale. This function applies to excise invoices for sales from factories only, currently
proposed to manually create Excise invoice.

Day-to-Day Activities

When you post an invoice, the system creates an excise invoice. All the information
that it needs to create the excise invoice is provided either by the invoice or by the
Customizing settings that you have made. It also determines the excise invoice type
automatically.

Exemption Forms

Use

Some customers may be liable to excise duty at reduced rates or exempt from it
altogether (for example, customers abroad). Such businesses must provide you with a
copy of their exemption forms in order to claim their exemption.

Activities

If you make a sale to a customer that is in possession of an exemption form, you have
to record the form number in the sales order. The system then automatically applies
the appropriate rate of excise duty.

When you create the sales order, enter the form, using the customer tax classification
fields. Based on the customer tax classification status, you can use different excise
rates for a sale transaction.

If the form has not been submitted by the time you create the pro forma excise
invoice, the excise value will be recalculated at the normal rate.

See also:

Form Tracking

Creation of Excise Invoices in Batches

Use

You use this report to create excise invoices for batches of invoices and batches of pro
forma excise invoices, instead of creating each one individually (see Sales from
Factories). The excise invoices are then created in the background.

Selection

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PROJECT DISHA
On the selection screen, specify which billing documents (invoices or pro forma excise
invoices) you want to create excise invoices for.

Output

A list of commercial invoices and pro forma excise invoices appears, which you
process as follows:

1. If you want to see how much credit is available on your CENVAT accounts –
and if there is enough to cover the excise duty that you will incur when you
create the excise invoices – choose Account balances.

A dialog box appears with the following information:

o The amounts under Balances are the amounts available on the CENVAT
accounts.
o The amounts under Utilization are the total amounts of the excise duties
to be levied.
o If the CENVAT accounts do not contain enough credits to cover the
excise duties, the amount short is shown under Deficit.

2. When you know which documents you want to process, select them and
choose Batch utilization.

Printout of Excise Invoices

Use

You use this report to print outgoing excise invoices.

Features

Selection

On the selection screen, enter the numbers of the excise invoices. If any of these are
reprints, select Incl. printed excise inv.

Creation of Excise Registers

Purpose

You follow this procedure to create the excise registers.

Process Flow

1. You update register RG 1 and the Part I registers daily.

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PROJECT DISHA
This report updates any missing data for the RG 1 register, and Part I of the RG
23A and RG 23C registers. Its main purpose is to update the issue information
in the Part I register, which is not otherwise tracked by the system.

2. When you need to submit the registers, you run the Data Extraction report, and
the system saves the data to an internal table.
3. You run the Register Printout report, which reads the data from this table and
prints it out.

Data Extraction

Use

You use this report to extract the data in order to create the excise registers (see
Creation of Excise Registers).

Prerequisites

You have entered the closing balance of the RG23A Part II, RG23C Part II, and PLA
registers in table J_2IACCBAL, as they were on the day prior to your extracting the
register data.

Assume you want the extract the registers from 1 January 2001. You
have to maintain the closing balances in the table J_2IACCBAL as on 31
December 2000.

You make the entries in table J_2IACCBAL as described below:

Field Entry

EXGRP Excise group of the registers

REGISTER Type of register

Make an entry for each of the following:

 RG23ABED
 RG23ASED
 RG23AAED
 RG23CBED
 RG23CSED
 RG23CAED
 PLABED
 PLASED

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PROJECT DISHA
 PLAAED

 PLACESS

DATUM Date of the closing balance

WERKS Leave this field blank

OP BAL Leave this field blank

CL BAL Closing balance in the register

EXAMT Leave this field blank

EXIND Leave this field blank

USNAM User ID of the person making the entries

CPUDT Date of entry

CPUTM Time of entry

Output

The system extracts the data. You can now print it out using the Register Printout
report.

Verifying and Posting Excise Invoices Assigned to Delivery

Use

You follow this procedure to verify that the correct excise invoices have been assigned
to a delivery. If everything is correct, you can then post the delivery.

Prerequisites

You have selected which excise invoices are to be assigned to the delivery and have
posted the goods issue.

ARE Document

Use

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PROJECT DISHA
In the R/3 System, each ARE document creation is manual.

Exports Under Bond

Excise Bond

Definition

A document that effectively licenses a manufacturing plant to remove goods from its
premises without paying basic excise duty, on condition that the goods are then
exported

An excise bond covers a fixed amount of excise duty. The excise duty of the goods
exported under bond cannot exceed the bond value.

In the R/3 System, the term "excise bond" also covers letters of
undertaking, and all of the excise bond functions apply equally to letters
of undertaking, unless stated otherwise.

Purpose

This procedure describes how you process ARE-1s for exports under bond.

Prerequisites

You have an excise bond from the government.

You have received a sales order from a customer located abroad. In the R/3 System,
you have already created the delivery and the outgoing excise invoice.

Process Flow

1. The excise clerk creates an ARE-1.

He then calls the local excise department and asks them to send an excise
officer to check the goods.

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PROJECT DISHA
2. The excise officer comes and checks that the goods match what is on the ARE-
1. He fills out Part A of the form (Certification by the Central Excise Office).

The clerk then posts the ARE-1 and prints out the requisite number of copies.

The excise officer signs the ARE-1s and takes one copy with him.

3. The shipping department sends the goods to be exported, together with the
excise invoice and the ARE-1.

Before the goods can leave the country, they have to go through the customs
office, for example, at the airport or at the port.

4. When the goods arrive at customs, the customs officer checks whether the
excise invoice and the ARE-1 match the goods.

If he finds that there are fewer goods than stated on the ARE-1, he enters the
shortfall in the ARE-1.

He then fills out Part B of the ARE-1 (Certification by the Customs Officer) and
sends it back to the excise clerk. One of the copies is in a sealed envelope.

5. When the excise clerk receives the ARE-1, he updates the ARE-1 in the R/3
System.

He fills out the various certification dates in the ARE-1 (for example, the date
when the ARE-1 arrived back at your company).

If the customs officer noted a shortfall in the quantity of goods, the excise clerk
enters the shortfall as well. Since the whereabouts of the missing goods cannot
be accounted for, they no longer qualify for exemption from excise duty. Your
company is therefore liable for the excise duty on the shortfall, plus interest,
backdated to the date when you removed the goods from your premises. The
clerk specifies which excise registers to pay the excise duty from.

6. The clerk sends the ARE-1 in the sealed envelope to the excise department.

The excise officer cross-checks this copy of the ARE-1 with his own copy.
When he is satisfied that everything is correct, he sends the excise clerk a final
confirmation.

7. When the excise clerk receives the confirmation, he closes the ARE-1.

The process is now complete.

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PROJECT DISHA
Register RG 23D

Definition

A record of receipts and issues of excisable materials, as kept by depots.

Use

In procurement, when the warehouseman posts a goods receipt, the system creates
a register entry.

In sales, when a sales clerk creates a sales order, he has to specify which excise
invoices were delivered with the goods that are being sold. Then, when the
warehouseman posts the goods issue, the system generates another register entry.

The R/3 System generates all the necessary entries in the register. You can prepare a
copy of the register as required.

Register RG 23D Entries

Use

The R/3 System creates RG 23D entries for all receipts of excisable materials, and
when you enter a goods issue, you specify which RG 23D entries the goods came
from originally.

Activities

Day-to-Day Activities

When you enter a goods receipt for excisable materials, the system generates a Part
I entry in Register 23D.

The system creates one entry for each goods receipt, each of which is numbered with
a serial number. Each entry contains a separate line item for

each material in the goods receipt, and each line item has its own folio number.

When you enter a goods issue, you have to specify which folio numbers are
associated with it. Again, each entry has its own serial number. The excise duty
associated with these items is then added to the customer invoice.

Reporting

Prepare a copy of the registers as described under Creation of Excise Registers.

Example

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PROJECT DISHA
A purchasing clerk places an order with a vendor. When the warehouseman enters
the goods receipt, the system generates the appropriate RG 23D entry automatically,
as follows:

The RG 23D entry contains a separate line item for each material in the goods receipt,
and each line item has its own folio number.

Later that day, a second lot of goods is delivered. Again, the warehouseman enters
the goods receipt in the system, and the system creates the RG 23D entry
automatically.

This is the second RG 23D entry, so the serial number is 0002. The folio numbers
start at the next available number, in the example, 004.

Later on, a sales clerk enters a sales order. When the excise clerk selects the RG 23D
entries to go with the goods issue, the system generates the following RG 23D entry:

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PROJECT DISHA

Serial Numbers

Use

The system automatically numbers all entries in the following registers with a serial
number:

· RG 1
· RG 23A and RG 23C, Parts I and II
· RG 23D
· PLA

Each excise group defines its own number range intervals.

Day-to-Day Activities

Whenever the system creates a register entry, it automatically assigns it a serial


number.

Reporting

The serial numbers are shown in the excise registers when you prepare them.

· Excise Tax Rate

In this master, you specify every possible rate of excise duty that might apply to
combination of chapter ID and final excise duty indicator.

B) Excise Transactions

In CIN, there are the following excise transactions:

· Sale from Factory

Create an excise invoice based on commercial invoice/billing document. Instead of


creating excise invoice manually, you can have the system create them
automatically.

· Exports

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PROJECT DISHA

Exports under bond are not subject to excise duty while exports not under bond
are handled like any other goods issue. When you create an excise invoice for
export, you specify the invoice type whether it is deemed, bond or no bond.

In deemed exports, the excise to be paid will be zero and it will be posted in Part II
register. The system numbers it as a domestic excise invoice.

In exports under bond, the excise to be paid will be zero and it will not be posted in
Part II register. The system numbers it with an export excise invoice number.

In exports not under bond, the excise duty is paid as mentioned in chapter ID
master. The system numbers it with an export excise invoice number.

· Sale from Depot

Create an excise invoice based on delivery document from manufacturing plant to


depot.

· Other outward movements

The excise invoice can be created with reference to various other documents as
follows:

o Goods issue document (transfer posting, etc)


o Vendor excise invoice (return to vendor, etc)
o Factory excise invoice (sales return, etc)

In addition, the excise invoice can be created without reference document also.

· Excise Duty Utilization

This function is used to pay the excise duty on a periodic basis. It could be
fortnightly, monthly or anytime. The excise duty amount can be paid or utilized from
either CENVAT account or PLA account.

· CENVAT Adjustment Postings

This function is used to make an adjustment posting to any of CENVAT accounts.


You can make adjustment postings to account for scrap, materials that you have
not used in production, money that you have transferred to your PLA account
(using TR6 Challan) and other transactions.

C) Excise Registers

The SAP system handles the following excise registers:

· RG23 (A and C) – Part I

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PROJECT DISHA
· RG23 (A and C) – Part II
· PLA
· RG 23D
· RG 1
· RT-12

These is also a provision in FI to print Sales Tax Register.

Additional tax by name Cess 15% being applied on finished goods that are being sold
as first sale in the state of Karnataka.
Cess 15% is applied on Sales tax value (Similar to surcharge)
Cess is not applicable for inter state CST Billing.

Cess would be shown in invoice document.

Cess % and Value would form part of sales tax register

To be taken to general sales tax account

Cess rate will be maintained by SD condition record.

To be addressed through condition table, where condition record will be maintained


with the following combination -
Region of plant, region of customer, storage location

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PROJECT DISHA

1.7 To-Be Business Processes for Sales

The following sales processes will be configured in SAP for Henkel sales requirement:

Order
type Order Description in SAP Explanation
ZI01 IN Depot Order MRP Sales from Depot using MRP price
ZI02 IN Depot Order LP Sales from Depot using List Price
Free of Charge sales order both from
ZI03 INFree of Chrg Order factory and Depot
ZI04 IN Fact Sls Domestic Domestic sales from factory
ZI05 IN Credit Memo Req Normal Credit memo request
ZI06 IN Debit Memo Req Normal Debit memo request
Special customer order type
( sales order requirement would pass to
ZI07 IN SPl. CUST.Order MRP )
Export order both from factory and
ZI08 IN Export Order Depot
ZI09 IN 3rd party High sea sales
Sales returns using MRP price
ZIR1 IN MRP Returns calculation
Sales returns using List Price
ZIR2 IN LP Returns calculation
ZIR3 IN Free Of Chg Rtrn Free goods return
ZIR4 IN Fact Rtrns Domest Domestic Sales return to factory
ZIR7 IN CSD Returns Special customer return
ZIR8 IN Exp Returns Export order return

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PROJECT DISHA

L
Manufactory

Invoice

S AP P ro cess N o n S AP P ro cess

N on -S AP D o cum en t
S AP G enerated D o cu

S A P M aster D ata
D ecisio n P ro cess

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

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TO-BE Sales from Depot to normal customer ( SD – 05 ) PROJECT DISHA

Zonal office /Corporate office Customer or Depot


TSI place
order
1
VPs/Zonal FM/Sales
Controller approval Create sales
order
Y
3

N 4 Credit check if
required
5
Y
5
Move
goods to N ATP 7
Depot check Back order
8 ? processing
Storage
location : 1st 7 Y
Coordinate sales
with logistic 9
department DN , PGI, Customer invoice
Detail see PP Billing

Storage Auto
location : 2nd
determined
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PROJECT DISHA

90

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PROJECT DISHA

T
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PROJECT DISHA

T
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PROJECT DISHA

TO -BE

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

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PROJECT DISHA

The As-Is processes map to different To-Be processes:

SN To-Be Process As-Is Process


 HSIL Depot to RD / SD / Modern Trade
ZI01 Depot sales MRP
ZI02 Depot sales LP Customer
 HMIL Depot to RD & SD
1 ZI07 Special cust.  Depot to Domestic Customer / Toll
Manufacturer
 Import Component Sale to Toll
Manufacturer
2 ZI04 Factory Domestic  Manufacturing Plant to Domestic Customer / Toll
Manufacturersales
 Manufacturing Plant to Nepal
Customer
 Depot to Nepal Customer
 Manufacturing Plant / Depot to
3 ZI08 Export order
Bangladesh Customer
 Manufacturing Plant / Toll
Manufacturer (with Henkel registration)
to Export Customer
4 ZI09 3rd party order  High Sea Sales

ZIR1 Sales return MRP


ZIR2 Sales return LP
5 ZIR3 Free of charge re  Sales Return Claim
ZIR4 Facty return Dom
ZIR7 Special return
ZIR8 Export Return
 Manufacturing Plant to Depot (of same
company)
Stock Transport Order  Toll Manufacturer (with Henkel
6 (detail see integration Registration) to Depot
doc. )  Depot to Depot
 Manufacturing Plant of one company to
Manufacturing Plant of same company
 Manufacturing Plant to Depot (of
different company)
Inter-company Stock  DIL/CCCo Depot to HSIL Depot (within
Transport Order Depot / across Depot)
7 (detail see integration  Manufacturing Plant of one company to
doc. ) Manufacturing Plant of other company
 HSIL /CCCo Depot to HMIL Depot
(within Depot) – for Samples
Stock Transport Order
8 return ( detail see  Stock Return integration
doc.)

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PROJECT DISHA

Inter-company Stock
Transport Order return
9 ( detail see integration  Sales Return Claim
doc. )
 Manufacturing Plant / Depot to
Customer – for Samples
10 ZI03 free sampling  Stock replacement
 Free samples issue to customer
11 ZI05 Credit Memo  Damaged Claim
request
12 ZI06 Debit Memo  Debit Note
request

Each of the above processes has been explained in detail below:

A) Sales Order

The sales order process will consists of the following:

 Create sales order using different order type according to different


scenario
· backorder processing would be used.
· Create Delivery with reference to Sales Order
· Create Billing Document with reference to Delivery
· If required, create Excise Invoice with reference to Billing Document, if
domestic sales from factory

B) Scrap Sales Order

The sales order process will consists of the following:

· Create Scrap Sales Order.


· Create Delivery with reference to Sales Order
· Create Billing Document with reference to Delivery
· If required, create Excise Invoice with reference to Billing Document, if
domestic sales from factory.

C) Return Sales Order

The return sales order process will consist of the following:

· Create Return Sales Order with reference to created Sales Billing


Document
· Create Return Delivery with reference to Return Sales Order
· Create Credit Note (Billing Document) with reference to Return Delivery

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PROJECT DISHA
· If required, create Excise Invoice with reference to Credit Note if domestic
sales return to factory

D) Stock Transport Order (STO)

The stock transport order process will consists of the following:

· Create STO (Purchase Order) in Receiving Plant based on already


generated STR (Purchase Requisition)
· Create Delivery in Supplying Plant with reference to STO
· If required, create Excise Invoice in Supplying Plant with reference to
Delivery
· Do Goods Receipt in Receiving Plant against STO
· In case there is free goods along with normal item, STO could also be
created via choosing the free goods indicator. The difference between free
goods and normal item in the STO is the Excise Duty of normal item is
based on MRP price, while the free goods is based on List Price

E) Inter-company Stock Transport Order (STPO)

The inter-company stock transport order process will consists of the following:

· Create STO (Purchase Order) in Receiving Plant based on already


generated STR (Purchase Requisition)
· Create Delivery in Supplying Plant with reference to STO
· Create inter-company Billing Document in Supplying Plant with reference
to Delivery
· If required, create Excise Invoice in Supplying Plant with reference to
Billing Document
· Do Goods Receipt in Receiving Plant against STO
· Do Invoice Verification in Receiving Plant
· In case there is free goods along with normal items, STPO could also be
created via choosing the free goods indicator. The difference between free
goods and normal item in the STPO is the free goods wouldn’t have any
value regards to inter-company billing and logistic invoice verification.

F) Return Stock Transport Order (STO)

The stock transport order process will consists of the following:

· Create Return STO


· Process Goods Issue ( T-code MIGO ) of returning plant with reference to
STO
· Create Return delivery of goods receiving plant
· Process Post Goods Receipt of receiving plant

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PROJECT DISHA
· If required, create Excise Invoice in Receiving Manufacture Plant
Manually.

F) Return Inter-company Stock Transport Order (STPO)

· Create Return STPO


· Create Returns Delivery in receiving plant with reference to STOP
· Process Goods Issue ( T-code MIGO ) of return plant with reference to
STPO
· Process Post Goods Receipt of receiving plant
· Create inter-company credit memo of returns in returning Plant with
reference to Returns Delivery
· Create inter-company credit memo of LIV of receiving plant with reference
to STPO

G) Free-of-charge (FOC) Delivery

The free-of-charge delivery process will consist of the following:

· Create FOC Delivery (Sales Order)


· Create FOC Delivery with reference to created sales order
· Process backorder
· Create Delivery with reference to FOC Delivery
· If the delivered from factory, the pro forma invoice would be generated with
reference of delivery
· The Excise invoice would be created with reference of pro forma invoice.

In Henkel the credit memo and debit memo would be handled in FI module.

· Credit Memo

The credit memo process will consists of the following:

· Create Credit Memo Request (Sales Order)


· Create Credit Memo (Billing Document) with reference to Credit Memo
Request

· Debit Memo

The debit memo process will consists of the following:

· Create Debit Memo Request (Sales Order)


· Create Debit Memo (Billing Document) with reference to Debit Memo
Request

· Non-Sales Return Claim

Non-sales return claim would be handled in FI module.

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PROJECT DISHA

· Configure purely as a part of FI Module

· Other Processes

· Sales Incentive

The tables and respective programs will be developed to enter monthly


targets/KP, the period, and the sales incentives for TSI/TSS/SO, ASM and
RSM. Further a report would be developped to calculate incentive based
on actual billing and entered incentive schemes.

· Blocking the Customer

If the Cheque has bounced, or the order is not signed, or there is no


instrument, the customer will be blocked manually for creating further
documents in the system.

· Down-payment

The down-payment function will be used in SAP to enter the DDs received
in advance. Subsequently when the invoicing is done in SAP, the down-
payment document will be used to adjust the AR of an invoice. It’s part of
FI function.

· Authorization

Status of production view option to be made available to Sales


Coordinator, VP (S), and to sales controller.

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 105 of 142


PROJECT DISHA

1.8 To-Be Pricing Procedure for Sales

The following pricing procedures will be configured in SAP for Henkel


requirement:

Pricing Procedure Description


Z48401 Direct Sale MRP
Z48402 Direct Sale List Price
Z48403 Direct Sale MRP MPT
Z48404 Direct Sale List Price MPT
Z48407 Direct Sale MRP Kerala
Z48408 Direct Sale List Price Kerala
Z48410 India Export
Z48412 India Inter Co. Sales
Z48413 India Factory Sales Domestic
Z48415 India Free of Charge Factory
Z48416 India Stock Transfer
Z48418 India Third Party Sales
Z48419 India Stock Transfer Turnover

The following matrix maps the As-Is processes to different pricing procedures:
SN Pricing Procedure As-Is Process

Z48401  HMIL Depot to Re-Distributor / Super


1 Z48403 Distributor / Modern Trade Customer
Z48407  Sales Return Claim
(based on MRP)

Z48402  Depot to Domestic Customer / Toll


Z48404 Manufacturer
2 Z48408  Import Component Sale to Toll
(based on List Price ) Manufacturer

 Manufacturing Plant to Depot (Cross


Company)
 DIL/CCCo Depot to HSIL Depot (within
3 Z48412
Depot / across Depot)
 Mfg Plant of one Company to Mfg Plant
of other Company
 Manufacturing Plant to Domestic
4 Z48413
Customer / Toll Manufacturer
 Manufacturing Plant to Depot within
5 Z48416
company
6
Z48418  High Sea Sales

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PROJECT DISHA
· Manufacturing Plant to Nepal
Customer Depot to Nepal Customer
 Manufacturing Plant / Depot to
Bangladesh Customer
7 Z48410 Manufacturing Plant / Toll Manufacturer (with
Henkel registration) to Export Customer
 Damaged Claim
 Debit Memo
8 Z48415  Free of charge from factory or Depot
Different pricing
9 procedure would be used  Sales Return Claim
for different scenario.
10 Z48419  Stock transfer Turnover

The following As-Is processes will have pricing procedure:

· Stock Transport Order (If required, only Excise Invoice based on Delivery)
o Manufacturing Plant to Depot (of same company)
o Toll Manufacturer (with Henkel Registration) to Depot
o Depot to Depot
o Manufacturing Plant of one company to Manufacturing Plant of
same company
· Return Stock Transport Order (If required, only Excise Invoice based on
Delivery)
o Stock Return

· Free-of-charge Delivery
o Manufacturing Plant to Customer – for Samples

o Stock Replacement

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PROJECT DISHA

The following access sequence are created in order to cater for the different condition types
requirement:
N Access Description Table Accesses
o. Sequen
ce
1 ZI02 Margins Access 978 Plant/Cust.grp 1/Cust.grp.2/Material
Seq
979 Plant/Cust.grp.2/Material
7 Division/Customer
4 Material
2 ZI04 Combi Access 981 Plant/Stor. loc./Cust.grp.2/Material
Sequence
970 Material/Cust.grp 1/Cust.grp.2
974 Sales off./Cust.grp.2/Material
975 Region/Cust.grp.2/Material
988 Cust.grp 1/Cust.grp.2
973 Cust.grp 1/Material
4 Material
3 ZI05 Payment Terms 977 Pmnt terms
4 ZI06 Plant Cust Grp 987 Plant/Customer/Material
Mat Grp
980 Plant/Cust.grp.2/Matl grp 1
5 ZI08 India UTXJ tax 985 Country/PlntRegion/Region/Plant/TaxCl1Cus
access sequenc t/TaxCl.Mat/Stor. l
11 Export Taxes
6 ZI09 India tax access 976 PlntRegion/Region/TaxCl1Cust/Cust.grp.3
CST
7 ZI10 Plant Customer 987 Plant/Customer/Material
Material
981 Plant/Stor. loc./Cust.grp.2/Material
8 ZI11 Plant/Cust grp 5 Customer/Material
2/material
979 Plant/Cust.grp.2/Material
974 Sales off./Cust.grp.2/Material
975 Region/Cust.grp.2/Material
4 Material
9 ZI12 Additional Margin 972 PlntRegion/Region/Plant/Stor.
loc./Cust.grp.2/Matl grp 1
10 ZI13 MRP- India 4 Material
11 ZI14 Sales 350 Sales Organization
Organisation
12 ZI15 Secondary 982 Plant/City code/Mat.pr.grp
Freight
13 ZI16 Transfer Price 5 Customer/Material
4 Material

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PROJECT DISHA

The following condition types are created in order to cater for the different pricing procedure:
No. Condition Description Condition Calculation Access Maintain
Type Class Type Sequence Records
1 ZI00 IN100% Discount or Percentage None ---
discount surcharge
2 ZI01 IN Zero Taxes Percentage ZI14 A0
Taxes
3 ZIAB IN MRP - Discount or Percentage ZI06 Y
Abatement surcharge
4 ZIAM IN Add Discount or Percentage ZI12 Y
Margin UP surcharge
5 ZIAP IN Axion LP Prices Quantity ZI10 Y
6 ZIBP IN RD Basic Prices Percentage ZI14 100%
Price
7 ZICC IN Fact. Ass. Prices Quantity K004 Y
Value
8 ZICD IN Cash Discount or Fixed None ---
Discount surcharge amount
9 ZICP IN Inter Co. Prices Quantity ZI16 Y
Sale Pr
10 ZID1 Modern Discount or Percentage ZI11 Y
Trade Disc1 surcharge
11 ZID2 Modern Discount or Percentage ZI11 Y
Trade Disc2 surcharge
12 ZID3 Modern Discount or Percentage ZI11 Y
Trade Disc3 surcharge
13 ZIED IN Export Prices Quantity ZI11 Y
Depot
14 ZIF1 same free Discount or Percentage ZI11 Y
goods surcharge
15 ZIF2 same copy Discount or Percentage ZI14 ----
ZIF1 surcharge
16 ZIF4 Cross Promot Prices Quantity
17 ZIF5 Copy ZIF4 Discount or Percentage ZI14 -----
surcharge
18 ZIF6 Cross Pro Discount or Percentage ZI14 -----
Line14 surcharge
19 ZIFG IN Free Discount or Quantity None -----
goods surcharge
20 ZIFS IN Freight Discount or Fixed None -----
Subsidy surcharge amount
21 ZILP IN List Price Prices Quantity ZI10 Y
22 ZIM1 IN 1st Discount or Percentage ZI02 Y
Mrgn/Disc surcharge
23 ZIM2 IN 2nd Discount or Percentage ZI02 Y
Mrgn/Disc surcharge
24 ZIM3 IN 3rd Discount or Percentage ZI02 Y
Mrgn/Disc surcharge
25 ZIMA Further Disc Discount or Percentage ZI12 Y
UP surcharge

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PROJECT DISHA
26 ZIMP IN Profit Prices Percentage ZI14 -----
Margin(re)
27 ZIP2 IN Adj for Discount or Quantity ZI08 Y
Prec Tax surcharge
28 ZIP3 IN Prec Tax Discount or Quantity ZI08 Y
surcharge
29 ZIP4 IN Prec Tax Discount or Quantity ZI08 -----
Copy surcharge
30 ZIPA IN MRP Prices Quantity ZI13 Y
Axion
31 ZIPM IN Profit Prices Percentage ZI14 ------
Margin
32 ZIPR IN MRP Prices Quantity ZI13 Y
33 ZIRD IN RD Basic Discount or Percentage ZI14 -----
Cpy 100% surcharge
34 ZIS1 IN LST/RST Taxes Percentage ZI08 Y
Reverse
35 ZIS2 IN CST Taxes Percentage ZI09 Y
Reverse
36 ZIS3 IN LST/RST Taxes Percentage ZI08 Y
Rvs Copy
37 ZIS4 IN CST Rvs Taxes Percentage ZI08 -----
Copy
38 ZIS5 IN Taxes Percentage ZI08 Y
Surch/Cess
ST Fwd
39 ZIS6 IN Taxes Percentage ZI08 Y
Surch/Cess
Fwd
40 ZIS7 IN Taxes Percentage ZI08 Y
Surch/Cess
ST Fwd
41 ZIS8 IN Taxes Percentage ZI08 Y
Surch/Cess
Fwd
42 ZISA IN Cust Sale Discount or Percentage ZI10 Y
Allowc surcharge
43 ZISB IN Cust SL Discount or Percentage ZI10 ------
All Copy surcharge
44 ZISD IN Special Discount or Percentage ZI05 Y
Discount surcharge
45 ZISF Secondary Discount or Gross weight ZI15 Y Scales
Freight surcharge
46 ZIT0 IN Trd Disc Discount or Percentage ZI04 Y
Fw % surcharge
47 ZIT1 IN Trd Disc Discount or Quantity ZI04 Y
Fw Val surcharge
48 ZIT2 IN Trd Disc Discount or Quantity ZI04 -----
Rev Val surcharge
49 ZIT3 IN Trd Disc Discount or Percentage ZI04 -----
Rev Cpy% surcharge
50 ZIT4 IN Trd Disc Discount or Percentage ZI04 -----
Rev % surcharge

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PROJECT DISHA
51 ZITL IN Truck Ld Discount or Fixed None -----
Incentv surcharge amount
52 ZITP IN 3rd Party Prices Quantity ZI11 Y
Price
53 ZITR IN Turnover Discount or Percentage ZI06 Y
Tax Rev surcharge
54 ZITT IN Turnover Discount or Percentage ZI06 Y
Tax surcharge
55 ZITX IN Tax Differ Discount or Percentage ZI14 -------
100% surcharge

Remarks :

· Trade Discount issued to customers would have narrations as per the


agreement with the customer in the billing layout.

These narrations would be customer, material, period specific – To be


addressed by using two Z Table in SAP namely – Narrations Vs Customer,
Discount Vs Customer.

· Customer Sales Allowance of 3.25% discount is offered to AM


Marketing. This allowance is applied on Normal RD’s delivered price.
These RD’s payment term shall be considered as Demand Draft.

· For Second sale this % shall remain as 3.25% and for first sale product
it will vary with respect to the sales tax % of that category.

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 111 of 142


PROJECT DISHA

Below are the examples for the above Pricing Procedures -

SN Serial Number
f(SN) Function of SN
%/R/V Percentage / Rate / Value
H/I Header Level / Item Level
+/- Plus / Minus or Positive / Negative
A/c Posting Account posting
M/A Manual entry / Automatic entry
Remarks –> Formula used
Invoice Printing -> Details to be printed in Invoice

(1) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH

Auto / A/c
Sl No Condition Type F(SN) Values in Exampler Applicable Status Manual Posting
3,00
1 MRP R I A N
0.00
RETAILER / SALON 22
2 1 % 8 I - A N
MARGIN 2.22
SUB TOTAL - A
2,77
3 RETAILER DELIVERED 1-2 R I - A N
7.78
PRICE
RD / MT / CHEK 15
4 3 % 6 I - A N
FRANCHISES MARGIN 7.23
SUB TOTAL - BRD 2,62
5 3-4 R I - A N
LANDED PRICE- (RDLP) 0.55
23
6 LST / RST / SC/ CESS 5 % 10 I - A N
8.23
2,382.
7 RD BASIC PRICE 5-6 R I - A N
31
Billing Starts Here
2,382.
A RD BASIC PRICE 7 R I A Y
31
23
B LST / RST / SC/ CESS % 10 I + A Y
8.23
2,620.
C
TOTAL 55 H A Y

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PROJECT DISHA

(2) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WI

Auto / A/c
Sl No Condition Type F(SN) Values in Exampler Applicable Status Manual Posting
3,00
1 MRP R I A N
0.00
RETAILER / SALON 22
2 1 % 8 I - A N
MARGIN 2.22
SUB TOTAL - A
2,77
3 RETAILER 1-2 R I - A N
7.78
DELIVERED PRICE
RD / MT / CHEK
15
4 FRANCHISES 3 % 6 I - A N
7.23
MARGIN
SUB TOTAL - B
2,62
5 RD LANDED PRICE- 3-4 R I - A N
(RDLP) 0.55
12
6 TRADE DISCOUNT 5 % 5 I - A N
4.79
2,49
7 SUB TOTAL - C 5-6 I - A N
5.76
22
8 LST / RST / SC/ CESS 7 % 10 6.89 I - A N

9 PRICE TO RD 2,268.87

Billing Starts Here


2,393.
A RD BASIC PRICE 9&5 R I A Y
66
11
B TRADE DISCOUNT A % 5 I - A Y
9.68
2,27
C
SUB TOTAL - 1 A -B 3.98 I + A Y
22
D LST / RST / SC/ CESS C % 10 7.40 1 + A Y
2,501.
E TOTAL VALUE 37

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PROJECT DISHA

(3 ) MRP BASED PRICING PROCEDURE - FOR CST / LST / RST WORKING. - WIT

Auto / A/c
Sl No Condition Type F(SN) Values in Exampler Applicable Status Manual Posting

1 MRP R 2,250.00 I A N
RETAILER / SALON
2 1 % 8 166.67 I - A N
MARGIN
SUB TOTAL - A
3 RETAILER 1-2 R 2,083.33 I - A N
DELIVERED PRICE
RD / MT / CHEK
4 FRANCHISES 3 % 6 117.92 I - A N
MARGIN
SUB TOTAL - BRD
5 LANDED PRICE- 3-4 R 1,965.41 I - A N
(RDLP)
6 LST / RST / SC/ CESS 5 % 12 210.58 I - A N

7 SUB TOTAL - C 5-6 1,754.83 I - A N

8 CST 7 % 4 67.49 I - A N

SUB TOTAL - D 7-8 1,687.34 I - A N


9

Billing Starts Here


A RD BASIC PRICE 9 R 1,687.34 I A Y
B CST A % 4 67.49 I - A Y
C SUB TOTAL - 1 A -B 1,754.83 I + A Y
E TOTAL VALUE 1,754.83

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PROJECT DISHA

( 4 ) MRP BASED PRICING PROCEDURE - FOR CST / LST / RST WORKING. - WIT

Auto
Sl No Condition Type F(SN) Values Exampler Applicabl Statu / A/c
in e s Man Posting
ual
1 MRP R 660.00 I A N
RETAILER / SALON MRP - {M
2 1 % 8 48.89 I - A N
MARGIN IN %)}
SUB TOTAL - A
3 RETAILER DELIVERED 1-2 R 611.11 I - A N
PRICE
RETAILE
RD / MT / CHEK PRICE - {
4 FRANCHISES MARGIN 3 % 6 34.59 I - A N DELIVER
MARGIN
SUB TOT
SUB TOTAL - BRD
5 3-4 R 576.52 I - A N CHEK FR
LANDED PRICE- (RDLP)
VALUE

6 TRADE DISCOUNT 5 % 1.766 10.00 I - A N

7 SUB TOTAL - C 5-6 R 566.52


RDLP- {R
8 LST / RST / SC/ CESS 7 % 12 60.70 I - A N
TAX %)}
SUB TOT
SUB TOTAL - D 7-8 R 515.82 I - A N
9 SC / CESS
SUB TOT
10 CST 9 % 4 19.84 I - A N
C/(1+CST
11 SUB TOTAL - E 7-8 495.98 I - A N SUB TOT
Billing Starts Here
A RD BASIC PRICE 9 R 505.99 I A Y PRICE T
B TRADE DISCOUNT A % 1.766 8.94 I - A Y
SUB TOTAL - 1 A-B 497.05
B CST A % 4 19.88 I - A Y RD BASIC
C SUB TOTAL - 2 A -B 516.93 I + A Y RD BASIC
E TOTAL VALUE 516.93

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PROJECT DISHA

(5) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH OUT TRADE DISCO

Values Auto / A/c


Sl No Condition Type F(SN) in Exampler Applicable Status Manual Posting
3,000.0
1 MRP R 0 I A N
RETAILER / SALON 222.2 MRP -
2 1 % 8 I - A N
MARGIN 2 %)}
SUB TOTAL - A
2,777.7
3 RETAILER 1-2 R I - A N
8
DELIVERED PRICE
RD / MT / CHEK RETAI
157.2
4 FRANCHISES 3 % 6 I - A N {RETA
3
MARGIN PRICE
SUB TOTAL - B
2,620.5
5 RD LANDED PRICE- 3-4 R I - A N
5
(RDLP)
238.2 RDLP-
6 LST / RST / SC/ CESS 5 % 10 3 I - A N %)}
7 RD BASIC PRICE 5-6 R 2,382.31 I - A N
Billing Starts Here
A RD BASIC PRICE 7 R 2,382.31 I A Y
B SPECIAL DISCOUNT A % 0.5 11.91
C SUB TOTAL - 1 A- B 2,370.40 I A Y
237.0
D LST / RST / SC/ CESS C % 10 I + A Y
4
Net Inv
E
TOTAL 2,619.35 H A Y Custom

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PROJECT DISHA

( 6 ) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH TRADE DISC

Values Applica Auto / A/c


Sl No Condition Type F(SN) in Exampler ble Status Manual Posting
1 MRP R 3,000.00 I A N
RETAILER / SALON MRP -
2 1 % 8 222.22 I - A N
MARGIN %)}
SUB TOTAL - A
3 RETAILER 1-2 R 2,777.78 I - A N
DELIVERED PRICE
RD / MT / CHEK RETAI
4 FRANCHISES 3 % 6 157.23 I - A N {RETA
MARGIN PRICE
SUB TOTAL - B
SUB T
5 RD LANDED PRICE- 3-4 R 2,620.55 I - A N
(RDLP) FRAN
SUB T
6 TRADE DISCOUNT 5 % 5 124.79 I - A N
(1 + TR
SUB T
7 SUB TOTAL - C 5-6 2,495.76 I - A N
DISCO
RDLP-
8 LST / RST / SC/ CESS 7 % 10 226.89 I - A N
%)}

9 PRICE TO RD 2,268.87

Billing Starts Here


PRICE
A RD BASIC PRICE 9&5 R 2,393.66 I A Y
DISCO
RD BA
B TRADE DISCOUNT A % 5 119.68 I - A Y
DISCO
RD BA
C
SUB TOTAL - 1 A -B 2,273.98 I + A Y DISCO
D SPECIAL DISCOUNT C % 0.5 11.37
E SUB TOTAL - 2 C-D 2,262.61
SUB T
F LST / RST / SC/ CESS E % 10 226.26 1 + A Y CESS
G TOTAL VALUE 2,500.24

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PROJECT DISHA

( 7 ) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH OUT TRADE DISCO KERALA SPECIFIC

Sl No Condition Type F(SN) Values Exampler Applicable Statu Auto / A/c


in s Manual Posting
1 MRP R 300.00 I A N
RETAILER / SALON MRP -
2 1 % 8 22.22 I - A N
MARGIN %)}
SUB TOTAL - A
3 RETAILER 1-2 R 277.78 I - A N
DELIVERED PRICE
RETA
RD / MT / CHEK
4 3 % 6 15.72 I - A N - {RET
FRANCHISES MARGIN
PRICE
SUB TOTAL - BRD
5 LANDED PRICE- 3-4 R 262.05 I - A N
(RDLP)
RDLP
6 LST / RST / SC/ CESS 5 % 13.8 31.78 I - A N %)}
7 RD BASIC PRICE 5-6 R 230.28 I - A N
Billing Starts Here
A RD BASIC PRICE 7 R 230.28 I A Y
B SPECIAL DISCOUNT A % 0.5 1.15
C SUB TOTAL - 1 A-B 229.12 I A Y
D LST / RST / SC/ CESS A % 13.8 31.78 I + A Y
Net In
E TOTAL 262.05 H A Y Custo

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PROJECT DISHA

( 8 ) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH TRADE DISC

Sl No Condition Type F(SN) Values Exampler Applicable Statu Auto / A/c


in s Manual Posting
1 MRP R 300.00 I A N
RETAILER / SALON MRP -
2 1 % 8 22.22 I - A N
MARGIN %)}
SUB TOTAL - A
3 RETAILER DELIVERED 1-2 R 277.78 I - A N
PRICE
RETA
RD / MT / CHEK
4 3 % 6 15.72 I - A N - {RET
FRANCHISES MARGIN
PRICE
SUB TOTAL - BRD SUB T
5 LANDED PRICE- 3-4 R 262.05 I - A N CHEK
(RDLP) VALU
SUB T
6 TRADE DISCOUNT 5 % 5 12.48 I - A N
(1 + T
SUB T
7 SUB TOTAL - C 5-6 249.58 I - A N
DISCO
RDLP
8 LST / RST / SC/ CESS 7 % 13.8 30.26 I - A N %)}

9 PRICE TO RD 219.31

Billing Starts Here


23 PRICE TO RD +
A RD BASIC PRICE 9&5 R I A Y
1.79 DISCOUNT VAL
RD BASIC PRICE
B TRADE DISCOUNT A % 5 I - A Y
11.59 DISCOUNT %
2 RD BASIC PRICE
C
SUB TOTAL - 1 A -B 20.20 I + A Y DISCOUNT VAL

D SPECIAL DISCOUNT C % 0.5 1.10


2
E SUB TOTAL - 2 C-D 19.10
SUB TOTAL 1 * L
F LST / RST / SC/ CESS A-B % 13.8 30.39 1 + A Y CESS %
25
G TOTAL VALUE 0.59

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 119 of 142


PROJECT DISHA

( 9 ) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH OUT TRADE DISCO

Sl Auto /
No Condition Type F(SN) Values in Exampler Applicable Status Manua

1 MRP R 100.00 I A
2 RETAILER / SALON 1 % 8 7.41 I - A
MARGIN
SUB TOTAL - A
3 RETAILER DELIVERED 1-2 R 92.59 I - A
PRICE

4 RD / MT / CHEK 3 % 6.5 5.65 I - A


FRANCHISES MARGIN
SUB TOTAL - BRD
5 LANDED PRICE- (RDLP) 3-4 R 86.94 I - A
6 LST / RST / SC/ CESS 5 % 17.25 12.79 I - A

7 RD BASIC PRICE 5-6 R 74.15 I - A


Billing Working
A RD BASIC PRICE 7 R 74.15 I A
B LST / RST / SC/ CESS % 17.25 12.79 I + A
C CUSTOMER SALES A+B % 3.25 2.83 1 - A
ALLOWNACE
D TOTAL A +B-C 84.12 H A

TO ADD TAX COMPONENT ON DISCOUNT PORTION TO THE BASIC PRICE. - FOR WORKING REF R
REVISED BASIC PRICE SHALL BE - RD BASIC PRICE + DIFFERENTIAL IN SALES TAX

FORMULA FOR REVISED BASIC SHALL BE = N = RD BASIC PRICE + ( CUSTOMER SALES ALLOWNACE
CUSTOMER SALES ALLOWNACE /(1+ LST/ RST/CESS I
BILLING TO CUSTOMER

I RD BASIC PRICE A+N R 74.57 I A

CUSTOMER SALE
II ALLOWANCE - **** VALUE OF C R 3.79 2.83 I - A
III SUB TOTAL - AA I - II 71.74
III LST / RST / SC / CESS III % 17.25 12.38 1 + A

TOTAL 84.12

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 120 of 142


PROJECT DISHA

( 10 ) MRP BASED PRICING PROCEDURE - FOR LST / RST WORKING. - WITH TRADE DIS ALLOWANCE
Sl Values Auto /
No Condition Type F(SN) in Exampler Applicable Status Manual P

1 MRP R 3,000.00 I A
RETAILER / SALON
2 MARGIN 1 % 8 222.22 I - A
SUB TOTAL - A
3 RETAILER DELIVERED 1-2 R 2,777.78 I - A
PRICE

4 RD / MT / CHEK 3 % 6 157.23 I - A
FRANCHISES MARGIN

5 SUB TOTAL - BRD 3-4 R 2,620.55 I - A


LANDED PRICE- (RDLP)

6 TRADE DISCOUNT 5 % 5 124.79 I - A

7 SUB TOTAL - C 5-6 2,495.76 I - A

8 LST / RST / SC/ CESS 7 % 17.25 367.18 I - A


9 PRICE TO RD 2,128.58
Billing Working

A RD BASIC PRICE 9+5 R 2,253.37 I A

B TRADE DISCOUNT A % 5 112.67 I - A

C
SUB TOTAL - 1 A -B 2,140.70 I + A

D LST / RST / SC/ CESS C % 17.25 369.27 1 + A


CUSTOMER SALE
E ALLOWANCE C+D % 3.25 81.57
E TOTAL VALUE 2,509.97

TO ADD TAX COMPONENT ON DISCOUNT PORTION TO THE BASIC PRICE. - FOR WORKING REF RE
REVISED BASIC PRICE SHALL BE - RD BASIC PRICE + DIFFERENTIAL IN SALES TAX

FORMULA FOR REVISED BASIC SHALL BE = N = RD BASIC PRICE + ( CUSTOMER SALES ALLOWNACE -

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 121 of 142


PROJECT DISHA
CUSTOMER SALES ALLOWNACE /(1+ LST/ RST/CESS IN

BILLING TO CUSTOMER

I RD BASIC PRICE A+N R 2,265.37 I A


II TRADE DISCOUNT % 5 113.27
III CUSTOMER SALE VALUE OF C R 3.79 81.57 I - A
ALLOWANCE - ****

IV SUB TOTAL - AA I - II - III 2,070.52


III LST / RST / SC / CESS IV % 17.25 357.17 1 + A

TOTAL 2,427.69

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 122 of 142


PROJECT DISHA

( 11 ) MRP BASED PRICING PROCEDURE - FOR UP GOVT CUSTOMERS - PRODUCTS OF FIRST

Auto / A/c
Sl No Condition Type F(SN) Values in Exampler Applicable Status
Manual Posting

1 MRP R 75.00 I A N

2 RETAILER MARGIN 1 % 8% 5.56 -


3 SUB TOTAL - A 1-2 R 69.44 I A N

4 RD MARGIN 3 % 6% 3.93 I - A N

5 SUB TOTAL - B 3-4 R 65.51 I - A N

6 LST / SC 5 % 8% 4.85 I - A N
7 SUB TOTAL - C 5-6 R 60.66 I - A N
ADDITIONAL MARGIN - TO
8 COMPANY 7 % 2% 1.19 I + A N
BILLING STARTES FROM HERE

9 CUSTOMER RATE 7+8 R 61.85 I + A N


10 TAX 0.00

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 123 of 142


PROJECT DISHA

( 12 ) MRP BASED PRICING PROCEDURE - FOR UP GOVT CUSTOMERS - PRODUCTS OF SECON

Auto / A/c
Sl No Condition Type F(SN) Values in Exampler Applicable Status
Manual Postin
1 MRP R 55.00 I A N

2 RETAILER MARGIN 1 % 10% 5.00 -


3 SUB TOTAL - A 1-2 R 50.00 I A N

4 RD MARGIN 3 % 6% 2.83 I - A N

5 SUB TOTAL - B 3-4 R 47.17 I - A N

6 LST / SC 5 % 0% 0.00 I - A N
7 SUB TOTAL - C 5-6 R 47.17 I - A N

8 FURTHER DISCOUNT 7 % 4% 1.81 I - A N


9 SUB TOTAL - D 7-8 R 45.36
BILLING STRATES FROM HERE

10 CUSTOMER RATE 9 R 45.36 I + A N


11 TAX 0.00

( 13 ) LIST PRICE BASED PRICING PROCEDURE

Sl No Condition Type F(SN) Values in Exampler Applicable Status Auto / A/c R

Manual Posting
Invoicing begins here
A LIST PRICE R 1,000.00 I A Y

CUSTOM
TRADE
50.0
B TRADE DISCOUNT A R/% 5 I - A Y OR CUS
0 TRADE
RATE

(CUSTO
4.7
C SPECIAL DISCOUNT A-B % 0.5 I - M Y TRADE
5
SPECIAL

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 124 of 142


PROJECT DISHA

CUSTOMER SALE CUSTOM


D A-B-C % I - A Y
ALLOWANCE LOCATI

D1 MODERN TRADE A % I - A Y CUSTOM


DISCOUNT 1
D2 MODERN TRADE A % I - A Y CUSTOM
DISCOUNT 2
D3 MODERN TRADE A % I - A Y CUSTOM
DISCOUNT 3
A-B-C-D- 945.2
E SUB TOTAL - F R I + A N
D1-D2-D3 5
94.5
F LST / RST E % 10 3 I + A Y
G SURCHARGE F % 5 4.73 I + A Y
ADDITIONAL
H G % 10 0.47 I + A Y
SURCHARGE / CESS
I CESS F I + A Y
J TURN OVER TAX E % H + A Y
K CASH DISCOUNT V H - M Y
L FREIGHT SUBSIDY RV H - M Y CUSTOM
M FREIGHT RV H - A Y
1,044.9 Net Invoi
N
TOTAL 7 H A Y to Custom

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 125 of 142


PROJECT DISHA

( 14 ) MRP BASED PRICING PROCEDURE - VAT - SIMILAR TO CONVENTIONAL MRP BASED WORKING.
SEPARATELY.

Sl No Condition Type F(SN) Values Exampler Applicable Statu Auto / A/c


in s Manual Posting
3,000.0
1 MRP R 0 I A N
RETAILER / SALON
2 1 % 0 - I - A N MRP - {M
MARGIN
SUB TOTAL - A
3,000.0
3 RETAILER 1-2 R I - A N
0
DELIVERED PRICE
RD / MT / CHEK RETAILE
4 FRANCHISES 3 R 0 - I - A N {RETAIL
MARGIN (1+ MAR
SUB TOTAL - B
3,000.0
5 RD LANDED PRICE- 3-4 R I - A N
0
(RDLP)
272.7
6 LST / RST 5 % 10 3 I - A N RDLP- {R
12.9
7 SURCHARGE 6 % 5 I - A N LST x SC
9

ADDITIONAL ASC to b
8 7 % 10 1.30 I - A N
SURCHARGE / ST or SC

CESS to
9 CESS I - A N
ST or SC

To be cus
10 TURN OVER TAX 5-6-7-8 % - A N
states
5-6-7-8-
11 RD BASIC PRICE 9 R 2,712.99 I - A N
Invoicing begins here
A RD BASIC PRICE 11 R 2,712.99 I A Y

RD BASI
129.1 IN % / (1+
B TRADE DISCOUNT A R/% 5 9 I - A Y RD BASI
IN RATE

BASED O
12.8 PAYMEN
C SPECIAL DISCOUNT A-B % 0.5 5 I - A Y ADVANC
CREDIT
CUSTOMER SALE 83.5 CUSTOM
D N % 3.25 I - A Y
ALLOWANCE 6 LOCATI
MODERN TRADE
D1 DISCOUNT - 1 A % I - A Y CUSTOM
MODERN TRADE
D2 DISCOUNT - 2 A % I - A Y CUSTOM

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 126 of 142


PROJECT DISHA
MODERN TRADE
D3 DISCOUNT - 3 A % I - A Y CUSTOM
A-B-C- 2,487.3
E SUB TOTAL - F D-D1 R 9 I + A N
248.7
F LST / RST E % 10 I + A Y
4
G SURCHARGE F % 5 12.44 I + A Y
H ADDITIONAL G % 10 1.24 I + A Y
SURCHARGE /
CESS
I CESS F I + A Y
J TURN OVER TAX E % H + A Y
K CASH DISCOUNT V H - M Y
L FREIGHT SUBSIDY RV H - M Y CUSTOM
M FREIGHT RV H - A Y
2,749.8 Net Invoic
N
TOTAL 1 H A Y Customer

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 127 of 142


PROJECT DISHA

( 15 ) LIST PRICE BASED PRICING PROCEDURE FOR CST CUSTOMER - SIMILAR TO CONVENTIONAL W

Applicabl Statu Auto / A/c


Sl No Condition Type F(SN) Values in Exampler
e s Manual Posting
Invoicing begins here
A RD BASIC PRICE R 1,000.00 I A Y

CUSTOM
50.0 DISCOU
B TRADE DISCOUNT A R/% 5 0 I - A Y BASIC -
VALUE

OPTION
4.7
C SPECIAL DISCOUNT A-B % 0.5 I - A Y TRADE
5 DISCOU
D1 MODERN TRADE A % I - A Y CUSTOM
DISCOUNT 1
D2 MODERN TRADE A % I - A Y CUSTOM
DISCOUNT 2
D3 MODERN TRADE A % I - A Y CUSTOM
DISCOUNT 3
945.2
E SUB TOTAL - F A-B-C-D R I + A N
5
37.8
F CST E % 4 1 I + A Y
J TURN OVER TAX E % H + A Y
K CASH DISCOUNT V H - M Y
L FREIGHT SUBSIDY RV H - M Y CUSTOM
M FREIGHT RV H - A Y
983.0 Net Invoi
N
TOTAL 6 H A Y Customer

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 128 of 142


PROJECT DISHA

( 16 ) MRP BASED PRICING PROCEDURE - FOR KENDRIYA BANDAR CUSTOMERS - PRODUCT

Values Auto /
Sl No Condition Type F(SN) in Exampler Applicable Status Manual A/c Posting REMAR

1 MRP R 912.00 I A N
MRP - M
2 KANDRIYA MARGIN 1 % 8% 67.56 - IN % )
3 SUB TOTAL - A 1-2 R 844.44 I A N MRP - R
KANDRIYA BANDAR SUB TO
4 DISCOUNT - 1 3 % 5% 40.21 I - A N MARGIN

5 SUB TOTAL - B 3-4 R 804.23 I - A N SUB TO


KANDRIYA BANDAR SUB TO
6 DISCOUNT - 2 5 % 1.50% 12.06 I - A N DISCOU
7 SUB TO
SUB TOTAL - C 5-6 792.17 I - A N DISCOU
SUB TO
8 LST / SC 7 % 8% 58.68 I - A N IN %)

9 SUB TOTAL - D 7-8 R 733.49 I - A N SUB TO


BILLING STARTES FROM HERE
A CUSTOMER RATE 9 R 733.49 I + A Y SUB TO
B TAX A % 8% 58.68 I + A Y
C TOTAL VALUE A+B 792.17 I + A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 129 of 142


PROJECT DISHA

( 17 ) MRP BASED PRICING PROCEDURE - FOR KANDRIYA BANDAR CUSTOMERS - PRODUCTS

Sl No Condition Type F(SN) Values Exampler Applicable Status Auto / A/c Posting REMARK
in Manual
1 MRP R 1260.00 I A N
MRP - M
2 KANDRIYA MARGIN 1 % 8% 93.33 - %)
3 SUB TOTAL - A 1-2 R 1166.67 I A N MRP - KA
KANDIRYA SUB TOT
4 DISCOUNT - 1 3 % 5% 55.56 I - A N KANDRIY
SUB TOT
5 SUB TOTAL - B 3-4 R 1111.11 I - A N VALUE
KANDRIYA SUB TOT
6 DISCOUNT - 2 5 % 2% 16.67 I - A N 2 IN %
SUB TOT
7 SUB TOTAL - C
1094.44 I - A N 2 VALUE
SUB TOT
8 LST / SC 7 % 0% 0.00 I - A N %)
9 SUB TOTAL - D 7 -8 R 1094.44 I - A N SUB TOT
BILLING STARTES FROM HERE
A CUSTOMER RATE 9 R 1094.44 I + A Y SUB TOT
B TAX A % 0% 0.00 I + A Y
C TOTAL 1094.44 I + A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 130 of 142


PROJECT DISHA

( 18 ) MRP BASED PRICING PROCEDURE - FOR BSF CUSTOMER

Values Auto /
Sl No Condition Type F(SN) in Exampler Applicable Status Manual A/c Posting

1 MRP R 3000.00 I A N

2 BSF DISCOUNT 1 % 26% 619.05 I A N

3 SUB TOTAL - A 1-2 R 2380.95 I A N

BILLING STARTES FROM HERE


A CUSTOMER RATE 9 R 2380.95 I + A Y
B TAX A % 0% 0.00 I + A Y
C TOTAL VALUE A+B 2380.95 I + A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 131 of 142


PROJECT DISHA

( 19 ) MRP BASED PRICING PROCEDURE - MPT - SIMILAR TO CONVENTIONAL MRP BASED WORKING. WHEN PRODUCTS ARE
GOING TO SALE 2ND TIME WITHIN T
Applicabl Stat Auto / A/c
Sl No Condition Type F(SN) Values in Exampler
e us Manual Postin

1 MRP R 3,000.00 I A N
RETAILER / SALON
2 1 % 8 222.22 I - A N
MARGIN
SUB TOTAL - A
3 RETAILER DELIVERED 1-2 R 2,777.78 I - A N
PRICE
RD / MT / CHEK
4 3 R 6 157.23 I - A N
FRANCHISES MARGIN
SUB TOTAL - BRD
5 3-4 R 2,620.55 I - A N
LANDED PRICE- (RDLP)
6 LST / RST 5 % 0 - I - A N
7 SURCHARGE 6 % 0 - I - A N

ADDITIONAL
8 7 % 0 - I - A N
SURCHARGE /

9 CESS I - A N

10 TURN OVER TAX 5-6-7-8 % - A N

11 PRICE ADJ. FOR MPT R 177.78 I A N

12 RD BASIC PRICE 5-6-7-8-9 R 2,442.77 I - A N


Invoicing begins here
A RD BASIC PRICE 12 R 2,442.77 I A Y

116.3
B TRADE DISCOUNT A R/% 5 I - A Y
2

11.5
C SPECIAL DISCOUNT A-B % 0.5 I - A Y
7

CUSTOMER SALE
D N % 0 - I - A Y
ALLOWANCE
MODERN TRADE
D1 DISCOUNT - 1 A % I - A Y
MODERN TRADE
D2 DISCOUNT - 2 A % I - A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 132 of 142


PROJECT DISHA
MODERN TRADE
D3 DISCOUNT - 3 A % I - A Y
E=A-B-C- 2,314.8
E Net Sales Value R I A Y
D-D1 7
100.0
F Preceding Tax F R I - A Y
0
2,214.8
G TOTAL R H A Y
7
277.7
H LST / RST G % 12 8 H A
100.0
I Preceding Tax F R H A Y
0
177.7
J NET PAYABLE TAX H=G-F R 8 H + A Y
2,314.8
K NET SALES VALUE E R H A
7
2,492.6
L TOTAL SALES VALUE I=E+H % 5 H A Y
24.9
M TURN OVER TAX J % 1 H + A Y
3
2,517.5
N SALES VALUE K=I+J 8 H A Y
24.9
O ADDL. DISCOUNT L H - A Y
3
50.0
P TRUCK LOAD INCENTIVE M RV 0 H - M Y
10.0
Q FREIGHT SUBSIDY N RV 0 H - M Y
R FREIGHT O RV H - A Y
2,432.6
S
TOTAL K-L-M-N-O 5 H A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 133 of 142


PROJECT DISHA

( 20 ) MRP BASED PRICING PROCEDURE - MPT - SIMILAR TO CONVENTIONAL MRP BASED WORKING WHEN PRODUCTS ARE
GOING TO SALE 1ST TIME WITHIN THE
Auto / A/c
Sl No Condition Type F(SN) Values in Exampler Applicable Status Manual Posting
1 MRP R 3,000.00 I A N
RETAILER / SALON
2 1 % 8 222.22 I - A N
MARGIN
SUB TOTAL - A
3 RETAILER DELIVERED 1-2 R 2,777.78 I - A N
PRICE
RD / MT / CHEK
4 3 R 6 157.23 I - A N
FRANCHISES MARGIN
SUB TOTAL - BRD
5 3-4 R 2,620.55 I - A N
LANDED PRICE- (RDLP)
6 LST / RST 5 % 12 280.77 I - A N
7 SURCHARGE 6 % 0 - I - A N

ADDITIONAL
8 7 % 0 - I - A N
SURCHARGE /

9 CESS I - A N

10 TURN OVER TAX 5-6-7-8 % - A N

11 PRICE ADJ. FOR MPT

12 RD BASIC PRICE 5-6-7-8-9 R 2,339.77 I - A N


Invoicing begins here
A RD BASIC PRICE 12 R 2,339.77 I A Y

111.4
B TRADE DISCOUNT A R/% 5 I - A Y
2

11.0
C SPECIAL DISCOUNT A-B % 0.5 I - A Y
9

CUSTOMER SALE
D N % 0 - I - A Y
ALLOWANCE
MODERN TRADE
D1 DISCOUNT - 1 A % I - A Y
MODERN TRADE
D2 DISCOUNT - 2 A % I - A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 134 of 142


PROJECT DISHA
MODERN TRADE
D3 DISCOUNT - 3 A % I - A Y
E=A-B-C- 2,217.2
E Net Sales Value R I A Y
D-D1 7
F Preceding Tax F R H A
2,217.2
G TOTAL R H A Y
7
266.0
H LST / RST G % 12 7 H A
I Preceding Tax F R - H A Y
266.0
J NET PAYABLE TAX H=G-F R H + A Y
7
2,217.2
K NET SALES VALUE E R 7 H A
2,483.3
L TOTAL SALES VALUE I=E+H % H A Y
4
24.8
M TURN OVER TAX J % 1 3 H + A Y
2,508.1
N SALES VALUE K=I+J H A Y
7
24.8
O ADDL. DISCOUNT L H - A Y
3
50.0
P TRUCK LOAD INCENTIVE M RV 0 H - M Y
10.0
Q FREIGHT SUBSIDY N RV 0 H - M Y
R FREIGHT O RV H - A Y
K-L-M-N- 2,423.3
S
TOTAL O 4 H A Y

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 135 of 142


PROJECT DISHA

3.2 SD: Required Layouts and Reports


Compa
ny
Freq Consolidat
Sl.No Name of the Layout uenc Specifi e (HSIL + Location Remarks Priority Scope
c
y (HSIL/ HMIL)
HMIL )
1 Stock Transfer Note – from Factory Daily All No Factory ABAP 1 SD & MM
2 Stock Transfer Note – from Depot Daily All No Depot ABAP 1 SD & MM
3 Daily All Depot ABAP 1 SD
Delivery Challan – from Depot No
4 Daily All Depot ABAP 1 SD & MM
Stock Return Note No

Invoice All No
5 Domestic Sale – from Factory/Captive Consumption ( on pre-printed Daily All Factory ABAP 1 SD
stationary) No
6 Domestic Sale – from Depot Daily All No Depot ABAP 1 SD
7 VAT specific – for Haryana (similar to 7) Daily All No Depot ABAP 1 SD
8 MPT specific – for Bihar, Madhya Pradesh and Chattisgarh (similar to Daily All Depot ABAP 1 SD
7) No
9 Exports – From Factory to Excise Bonded Warehouse in Indian Daily All Factory ABAP 1 SD
Currency No

10 Exports – From Excise Bonded Warehouse to the Customer in the Daily All Depot ABAP 1 SD
currency in which the order is being created. No
ABAP (Avg 15-20
11Exports from Depot – for Nepal and Bangladesh Customers & Daily All Depot 2 SD
inv per month)
Merchant Export from zone office No
12 CSD Billing Daily All No Depot ABAP 2 SD
Manual 3 - 4 inv
13 Modern Trade customer Billing – specific formats Daily All Depot 1 SD
per month
No
Factory /
14 EXPORT - ARE1 Daily All No Depot CIN Std 1 SD

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 136 of 142


PROJECT DISHA

SD REPORTS REQUIREMENT
Consolidate
Sl.No Name of the Report Selection Criteria Frequency HSIL/HMIL (HSIL/HMI Location Remarks Priority Scope
L)
Date range, Depot, State,
1 Sales Abstract Zone, All India Monthly All No Corporate & Zone BW 3 SD
Depot, State, Zone, All India,
Select Brand, All Brands,
Company Sales overview
2 Fiscal Year/ Date range, Weekly All No Corporate & Zone BW 3 SD
(Value) & (Quantity) Company, Include tax or
Exclude Tax.
Date range, Customer group 1
& 2, Customers, Town,
Corporate, Zone,
3 Sales Analysis Inclusive sales return or Daily All No BW 1 SD
Exclusive sales return, Depot
Material, SKU, Brand
Town,Depot, State, Zone, All
Sales plan Vs Actual Sales India, RSM, ASM, TSI, Date Corporate, Zone,
4 report range, Company, Material, Weekly All No Depot BW 3 SD
SKU, Brand
Date range, ASM, RSM
5 RSM / ASM wise product Value, Tons, Alternate unit of Weekly All No Corporate & Zone BW 3
wise sales report measure, Material, SKU,
Brand SD
Date range, TSI, Customer
Sales Men / Customer wise Group 1 & 2 Value, Tons,
6 productwise sales report Alternate unit of measure, Weekly All No Zone, Depot BW 3
Material, SKU, Brand SD

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 137 of 142


PROJECT DISHA

Date Range, Depot, State,


Zone, All India, Quantity in
7 Consolidated report Base unit of measure, Weekly All No Zone, Depot BW 3
Alternate unit of measure, MT, SD
Year , SKU, Zone, State,
8 SKU wise primary trend Depot Monthly All No Corporate & Zone BW 3 SD
Fast Forward Tracking Year, Brand, Base unit of
9 ( select town ) ( To be measure, alternate unit of Monthly All No Corporate, Zone & BW 3
considered in sales analysis ) measure, ton,KL,State, Zone, Depot
SD
Date range, customer group 1
Delivery Challan ( Free of
& 2, Customer, Depot, State,
10 charge customer delivery Zone, All India, Company,
Weekly All No Depot & Zone BW 2
report ) Order Type SD
11 Invoice wise despatch Date range, Customer Group 1 Monthly All No Depot & Zone ABAP 2
statement (Sales tax report ) & 2, Customer SD
Cross Promotion Sale Main Material, cross product
12 ( Invoiced Product, Free wise, date range, Depot, State, Monthly All No Depot & Zone BW 3
Product Sale ) Zone, SD
Depot, State, Zone, Date
13 Inactive customer list range Monthly All No Zone & Corporate BW 3 SD
14 Sales / Sales return - Register Depot, State, Zone, All India, Monthly All No Corporate , Zone & BW 2
( Detail and Summary ) Material, customer group 1 & 2 Depot SD
Depot, State, Zone, All India,
15 Damage / Sales Return Material, customer group 1 & 2 Monthly All No Zone & Corporate BW 3 SD
Customer group 1 & 2,
16 List of Cancelled Invoice Customer, Depot, State, Zone, Monthly All No Zone & Corporate BW 2
All India SD
Townwise Brand wise sales
( to be considered in sales customer town, select brand or Weekly All No Corporate, Zone & BW 1 SD
analysis ) all brands, TSI,Date Range Depot

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 138 of 142


PROJECT DISHA

Townwise customer wise


sales ( to be considered in town, customer, TSI,Date Weekly All No Corporate, Zone & BW 1 SD
sales analysis ) Range Depot
TSI wise customer wise
TSI, Select Customer, All
despatch statement - customer, Date Range, Weekly All No Corporate, Zone & BW 1 SD
Summary ( to be considered Delivery, Depot, State, Zone Depot
in sales analysis )
TSI wise customer wise
despatch statement detail ( to TSI, Select Customer, All Corporate, Zone &
customer, Date Range, Weekly All No BW 1 SD
be considered in sales Depot
Delivery, Depot, State, Zone
analysis )
ASM/Brandwise sales report (
to be considered in sales Date Range, Select ASM, Weekly All No Corporate, Zone & BW 1 SD
analysis ) Brand, Depot, State, Zone Depot
Date range, Year wise, Month
wise, Week wise,
Hierarchy based sales report ( Demographic - VP(S) --> ZM--
to be considered in sales >RSM-->ASM-->TSI, Monthly All Corporate, Zone & BW 1 SD
analysis ) Geogrphical - All India -->Zone Depot
-->State-->Depot-->Town,
Product Hierarchy
Brand, SKU Customer group 1
17 Channel wise volume breakup & 2, Depot, State, Zone, All Weekly All No Corporate & Zone BW 3
India SD
Zone /state wise SKU wise
18 trend ( to be considered in Year , Brand, Zone, Weekly All No Corporate & Zone BW 3
SKU wise primary trend ) SD
19 brand wise marketing KP vs Date Range, Select Brand, Weekly All No Corporate & Zone BW 3
Channel wise volume breakup Customer Group 1 & 2, SD
brand wise Sales KP ( to be depot,state, zone, date range, Weekly All No Corporate & Zone BW 1 SD
considered in sales analysis ) brand, SKU

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 139 of 142


PROJECT DISHA

Brand - volume off-take trend


( to be considered in sales depot,state, zone, date range, Weekly All No Corporate & Zone BW 1 SD
analysis ) brand, SKU
Date range,Customer Group 1
20 RD Town wise Brand wise & 2 Customer town, Brand, Weekly All No Corporate & Zone ABAP 3
Secondary Freight ( detail ) SKU, Material SD
RD Town wise Brand wise Date range,Customer Group 1
21 Secondary Freight & 2 Customer town, Brand, Weekly All No Corporate & Zone ABAP 3
( summary ) SKU SD
22 Special discount based on Customer payment term, Date Monthly All No Corporate & Zone ABAP 3
payment term Range SD
Orders Not taken up for
23 Pending order list Delivery Purpose Monthly All No Corporate & Zone ABAP 3 SD
24 Inter Company Sale detail and Monthly All No Zone & Depot BW 3 SD
summary
25 Stock Return report Date range, Depot, State, All Corporate & Zone BW 3
Zone, factory location Monthly No SD
Date range, Customer group1,
Material, Base unit of
26 Export Register measure, alternate unit of Weekly All Corporate & Zone BW 3
measure, Ton, KL No SD
27 Stock Transfer Out Register Depot, State, Zone, Material, Weekly All Corporate, Zone & BW 2
Detail / Summary SKU, Brand, Date Range No Depot SD
Date range, Depot, State,
28 Sales Tax Register Zone, Monthly All No Zone & Depot ABAP 1 SD
Trade discount, Cash
Discount, Modern Trade
29 Discount Structure Report discount 1,2,3, Special Monthly All No Corporate & Zone BW 2 SD
Discount, Customer Group 1
and 2, Date Range

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 140 of 142


PROJECT DISHA

Material, SKU, Brand, Supply


30 Stock In Transit Detail & Plant, receiving plant, date Daily All No Corporate , Zone & ABAP 2 SD
Summary range, STO, Depot

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 141 of 142


PROJECT DISHA

Sign Off – SAP SD Module Blueprint Approval


Signing this document records your agreement to the contents of the
Business Blueprint, and confirmations the order to proceed with the remainder
of the project.

Name Title Date Signature

Mr. VR. Veerappan VP- Technical 30.07.2004

Mr. T. Krishna Kumar VP – Sales


30.07.2004

Mr. Ranju Kumar VP – Sales 30.07.2004


Mohan

Mr. Shekhar Sethu GM – SKP 30.07.2004

File: HSIL_SAP_SD_Blueprint_V1.1.doc Page 142 of 142