COMPANY PROFILE  HERO – There is always a better way 
"Hero", the brand name symbolizing the steely ambition of the Munjal brothers came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today, the ignition was fueled by one vision - to build long-lasting relationships with everyone, including workers, dealers and vendors. This philosophy has paid rich dividends through the years. Today the Hero family consists of 3500 employees, 3500 of dealers and millions of customers. It is ISO 9001 & 9002 certified. Like every success story, Hero's saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. Throughout its success trail, the Hero Group and its members have displayed unwavering passion of setting higher standards for themselves and delivering simply the best to their customers. The Hero Group philosophy is "To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity." Thus apart from being customer-centric, the Hero Group also provides its employees with a fine quality of life and its business associates with a total sense of belonging. Today, Hero Group ranks amongst the Top 10 Indian Business Houses comprising 18 companies, with an estimated turnover of US$1.8 billion during the fiscal year 2003-2004.

Turnover of the company: 1000-2500 crs. No. of employees: 2501-5000


The success of the Hero Group lies in the determination and foresight of the Munjal brothers, who shared their vision with their workers and led the Group to a position where its name has become synonymous with top-quality two wheelers. The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal (Chairman and MD of Hero Cycles) and Mr. Om Prakash Munjal continue to carry the torch and are actively involved in the day-today operations of the Hero Group. The Hero Group is a thriving example of three generations of a family working and striving together to ensure quality, satisfaction and extensive growth.

The Hero Group are continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers. While doing so, they maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the group to excellence in everything we do.


Dayanand Munjal and late Mr. Satyanand Munjal.THE HERO GROUP. ~4~ . we maintain the highest standards of ethics and societal responsibilities. " This mission is what drives us to new heights in excellence and helps us forge a unique and mutually beneficial relationship with all our stakeholders. performance and price aspirations of our customers. systems and human resources. shown to us by visionaries like Mr.THE MISSION STATEMENT “It’s our mission to strive for synergy between technology. Chairman & MD . Raman Kant Munjal. GLOBAL – ALLIANCES Over the years. Hero Group has strengthened its joint ventures. Mr. to produce products and services that meet the quality. We are committed to move ahead resolutely on this path. Mr Brijmohan Lall Munjal. Om Prakash Munjal. While doing so. Technology assimilation through wide sourcing has been and will continue to be an integral part of the progression of the Hero Group. the late Mr. forged profitable relationships with its partners and allied itself with some of the best players in the market.

Italy ~5~ . Switzerland IT Related Alliances Product Engineering Related Alliances SAP. Japan Fein Tools. Germany Navision Software India Private Limited Gujarat Industrial Investment LiveBridge.Technology Related Partnerships/ Alliances & Joint Ventures Honda Motor Company of Japan Showa Manufacturing Company Honda Foundry Company Limited. Germany Siemens Information Systems Limited DynEd International PTC Porsche Design Target Design Universal Cycles Plc. UK Ordinate Corporation EralMetall. USA Kawasaki Steel Corporation. USA Corporation Wean United. Japan Aprilia. AG. Japan National Bicycle.

The company has SAP R/3 4. which is well equipped with the latest software technologies. easily get information at any time with just one click and most important all the departments are integrated which is very useful feature of sap so that consistency of data is maintained. which enables the effective and streamlined operations of the department. in an online integrated way.Table1:-HERO GLOBAL ALLAINCES SYSTEM DEPARTMENTS I am undergoing training in the Systems Department.7 application. Kanwar Sumit Singh (SAP Consultant) Mr. The staff skills are enhanced through proper training and deploying the appropriate resources of the company to get the maximum result. The Application Implementation is done in SAP R/3 with database in Oracle. Hemant Rai (Network Administrator) WHY HERO CYCLES USES SAP? Hero cycles ltd is a worldwide company so for proper management and working in real time world Hero implemented SAP which reduces paper work. proper management is maintained. ~6~ . Bharat Bhushan (SAP Consultant) Mr. There are around 250 workstations. Narinder Singh (General Manager. IT) Mr. The Systems Department Team Mr.


~8~ .

Sales Process comes under the Sales and Distribution Module of SAP.INTRODUCTION TO SALES PROCESS DISTRIBUTION MODULE OF SAP IN SALES AND Sales Process refers to the all the activities from Pre.Sales activities to Payment by customer. Let us study about the various activities involved in the Sales Process: Pre –Sales Activities: • • • • Mailing List Phone Call records kept on the system Inquiries Quotations Sales Order Processing: • • Customers place orders with a customer service representative Standard orders normally contain: o Customer and item information o Pricing for each item ~9~ .

When customer takes ownership of goods c. Completes shipping process b. Serial number control – Every product has serial number assigned to it c) PGI : a. purchase order) o Make to order o Shipped by an external supplier o Shipped from another warehouse Shipping: Shipping includes 3 main thingsa) Delivery note b) Picking and Packing c) PGI(Post Goods Issue) a) Delivery note: Refers to final destination b) Picking and Packing: a. Batch Management – Batches for further destination b. Inventory is updated automatically Billing: • • • • Invoice generation Update Finance General Ledger accounts Update Customer Credit ~ 10 ~ .o o Inventory Sourcing: • • Delivery schedules and information Billing information If the product is available(availability checking) How the product is supplied: o From stock on hand o By replenishment activities(production order.

T The process is driven by its strategy for how it wants to work with its customers. for example qualification..NEED AND OBJECTIVE • • A sales process focuses on deals and opportunities. discovery. No sales professional or sales organization can perform at the highest levels without having a sales process to guide the execution of their sales strategies. ~ 11 ~ . A sales process is mandatory for success. proposing…. The process is driven by the company’s experience in winning or losing deals. the sales process should outlines the major steps. The process outlines the activities critical to achieving success and winning! • • • But it’s at the critical activity level that the sales process needs to be unique–after all. these are driven by our company’s strategies and priorities. and critical few activities sales professionals should follow to assure they are pursuing good deals—opportunities that are real and fit the company’s sweet spot. It is a set of steps and critical activities that have been developed based on the organization’s experience.


Enterprise Resource Planning  Short for Enterprise Resource Planning.Enterprise Resource Planning. including planning. and marketing. a business management system that integrates all facets of the business.ENTERPRISE RESOURCE PLANNING (ERP) Definition . a software solution that addresses the enterprise needs taking the process view of an organization to meet the organizational goals tightly integrating all functions of an enterprise. sales. manufacturing. ~ 13 ~ .

Credit.  Treasury: Commitments. software applications have emerged to help business managers implement ERP in business activities such as inventory control. order tracking.  Human Resources: Payroll. Forget about planning—it doesn't do much of that—and forget about resource. Production. doesn't live up to its acronym. Currencies. This is ERP's true ambition. Investments. Delivery. or ERP. Organization Hiring. finance and human resources. Materials Mgt. Billing.  Logistics: Procurement. customer service. But remember the enterprise part.  Enterprise Resource Planning software. ~ 14 ~ . SCOPE OF ERP The various areas that can be covered under the concept of Enterprise Resource Planning (ERP) are discussed below:  Customer Relations: Sales Support. As the ERP methodology has become more popular. a throwaway term.

 Improved controls and program alerts. uniform. ERP brings together people who work on share tasks within the same enterprise. Disadvantages are:  Customization of the ERP software is limited. ~ 15 ~ . relevant and up-to-date information is vital for the existence for the enterprise.  Improved access to information.EXPLORING ERP’S BENEFITS Integrated. Some of the tangible benefits of ERP are:  Reduction of lead-time by 60%  99% on time shipments  Doubled business  Increase of inventory turns to over 30%  Manufacturing of single bicycle time reduced to 80%  Better customer satisfaction  Improved vendor performance  Increase flexibility  Reduced quality cost  Improved workflow and efficiency.as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and the ways in which it is used.  Improved resource utility  Improved information accuracy  Improved decision making capability SHORTCOMINGS OF ERP Problems with ERP systems are mainly due to inadequate investment in ongoing training for the involved IT personnel .including those implementing and testing changes .

SAP is the largest software enterprise in Europe and the fourth largest software enterprise in the world as of 2009. and consolidation into a single enterprise may yield limited benefits. A company can achieve minimum standards.  Some large organizations may have multiple departments with separate. ~ 16 ~ . which provides enterprise software applications and support to businesses of all sizes globally.  ERPs are often seen as too rigid and too difficult to adapt to the specific workflow  Many of the integrated links need high accuracy in other applications to work effectively.  SAP AG is a German software development and consulting corporation. Headquartered in Walldorf.  Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.  The company's best known product is its SAP Enterprise Resource Planning (SAP ERP) software. and then over time "dirty data" will reduce the reliability of some applications. missions. chains-of-command. with regional offices around the world. etc. Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage. independent resources. Germany. SAP  SAP refers to “SYSTEM.  ERP systems can be very expensive leading to a new category of "ERP light" solutions. APPLICATIONS AND PRODUCTS IN DATA PROCESSING”.

 A supply chain describes the chronological and logical relationships of business transactions from original supply to final consumption. Tschira. A company is profitable if the price consumers are willing to pay for a product exceeds the costs of creating value. SAP was founded in 1972 as Systemanalyse und Programmentwicklung ("System Analysis and Program Development") by in Mannheim.ENTERPRISE SOFTWARE  SAP R/3 refers to SAP Real Time /3 tier architecture. five former IBM engineers Hans-Werner Hector.  A value chain encompasses those activities in the supply chain that add value to a product or service of an organization.  Enterprise software is integrated software that facilitates the flow of information among all the processes of an organization’s supply chain. value is added when the production process takes raw materials and transforms them into a finished product. when the product is sold to the customer. Plattner. Klaus E. Baden-Württemberg (Dietmar Hopp. and Claus Wellenreuther). For example. Hasso SAP R/3 . Flow of information in Enterprise Software ~ 17 ~ .  A value chain views all the business events from the receipt of a customer order to the delivery of that order.

The database does not only contain the master data and transaction data from your business applications. DB2/MVS. INFORMIX. It also contains information about application server groups and the current load balancing within them. DATABASE LAYER The database layer consists of a central database system containing all of the data in the SAP R/3 System. It uses this information to choose an appropriate server when a user logs onto the system. Theoretically. DB2/400 (on AS/400). This layer is the interface between the SAP R/3 Systems and its users. For example. It passes requests from one application server to another within the system. the SAP R/3 System supports the following database systems from other suppliers: ADABAS D. and receives data from it. ORACLE and ORACLE Parallel Server. This means that not all application servers will provide the full range of services. The SAP R/3 Basic system is a multi-tier client/server system. SAP does not manufacture its own database. and the database itself. Each application server contains a set of services used to run in the SAP R/3 System. the application server. all data for the entire SAP R/3 System is stored there. you only need one application server to run a SAP R/3 System.The R/3 Basis is the business operating system software that resides on the database server. The message server is responsible for communication between the application servers. the services are distributed across more than one application server. Instead. The database system has two components . The SAP R/3 system uses the SAPGUI to provide an intuitive graphical user interface for entering and displaying data. Microsoft SQL Server.the Database Management System (DBMS). The presentation layer sends the users input to the application server. Applications consist Presentation Layer Application Layer Database Layer ~ 18 ~ . DB2/Common Server. It also contains the program code for your applications. The classic configuration of a SAP R/3 System contains the following software layers:    PRESENTATION LAYER Presentation Layer contains the software components that make up the SAPGUI (Graphical User interface). APPLICATION LAYER The application layer consists of one or more application servers and a message server. and the clients of the end user of the R/3 installation. the database contains the control and Customizing data that determine how your SAP R/3 System runs. In practice.

The following diagram depicts the whole scenario – Software layers of R/3 system FEATURES OF 3-TIER ARCHITECTURE  SCALABILITY Adding more applications or more users to the system.  FLEXIBILITY The number of application modules may be increased without changing the Basis System software that runs on the application servers and the database server. These are stored in a special section of the database called the SAP R/3 Repository. another application server may be added to handle the additional processing demands of those users. menus. and are accordingly called Repository objects.of program code. and various other components. You work with them in the ABAP Workbench. function modules. screen definitions. When more users are added to the system.  ON-GOING MAINTENANCE ~ 19 ~ .

changes in organization structure can be made using the R/3 Reference Model and does not require changes in the Basis Software system. ~ 20 ~ . Also. ADVANTAGES OF SAP R/3 The SAP R/3 software helps in providing the various functions in the system: SECURITY THROUGH INTEGRATION It helps in providing full-fledged integration of the various data transfers and high quality reports can be made easily.Business functions included in the system may be removed and replaced by other functions that better match current business practices.

Exception reporting and interactive navigation through the database enhances the preparation of information. The system includes several industry-related plans.SAVING TIME WITH INTEGRATION The consolidation software helps to shorten the time needed to close the books. This is very helpful during the closing period when there is lot of workload. SAP APPLICATION MODULES ~ 21 ~ . CUSTOMIZING THE SOFTWARE AS PER THE NEEDS It is helpful in making new programs as per the requirements. PRE-FIGURED FOR THE FAST IMPLEMENTATION System comes with a variety of useful consolidations. ACCOUNTING AUTONOMY Running your consolidation on a separate computer increases the accounting department’s autonomy. INFORMATION SYSTEM The controlling component includes versatile reporting functions. which can be put to use immediately or can be employed after minimal adjustments. AUTOMATION OF CONSOLIDATION PROCEDURE It helps in reducing the time and expenses to manually enter all the documents especially in the area of consolidation investments. COST EFFECTIVE AUDITS The system generates printed audit reports and allows the auditor to perform interactive analysis of special detailed information directly on the screen. the financial transactions in the ledger are integrated with the consolidation database and helps in getting the required information at any time.

control and monitoring of long-term. The Basis System is the heart of the data operations and should be not evident to higher level or managerial users. CO Controlling--represents the company's flow of cost and revenue. The heart of the system from a manager's viewpoint are the application modules. depreciation and investment management. As entries are made relating to sales production and payments journal entries are automatically posted.      ~ 22 ~ . It too is automatically updated as events occur. pharmaceuticals. accounts payable and other sub-ledger accounts with a user defined chart of accounts. This connection means that the "books" are designed to reflect the real situation. WF Workflow--links the integrated SAP application modules with cross-application technologies. R/3 Core business processes These modules may not all be implemented in a typical company but they are all related and are listed below:  FI Financial Accounting-designed for automated management and external reporting of general ledger. IS Industry Solutions--combine the SAP application modules and additional industryspecific functionality. oil and gas. etc. highly complex projects with defined goals.SAP has several layers. It is a management instrument for organizational decisions. AM Asset Management--designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets. PS Project System--is designed to support the planning. accounts receivable. Other customizing and implementation tools exist also. tools and services. Special techniques have been developed for industries such as banking.

SD Sales and Distribution--helps to optimize all the tasks and activities carried out in sales. product costing. master production scheduling.      Technical Modules are: • • ABAP BASIS(administrator part) MODULES IMPLEMENTED AT HERO CYCLES The ERP package implementation at Hero Cycles covers the following seven modules:1. Equipment must be services and rebuilt. HR Human Resources--is a complete integrated system for supporting the planning and control of personnel activities. bills of material. production orders. This module includes. work centers. etc. quotation processing. 7. shop floor control. routings. MM Materials Management--supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing. material requirements planning. 4. delivery processing. delivery and billing. 5. billing and sales information system. These tasks affect the production plans. inventory management. 2. reorder point processing. etc. pre-sales support. PP Production Planning--is used to plan and control the manufacturing activities of a company. 6. inspection. PM Plant Maintenance--In a complex manufacturing process maintenance means more than sweeping the floors. and control for manufacturing and procurement. Key elements are. inquiry processing. Cost Controlling Sales and Distribution Material Management Production Planning & Control Plant Maintenance Quality Management Financial Accounting ~ 23 ~ . 3. sales order processing. sales and operations planning. QM Quality Management--is a quality control and information system supporting quality planning.

SAP IDES is a normal R/3 but with lots of DEMO data. and much. more. Financial Accounting. • It is simple to use and has a variety of master and transaction data. and presentations. IDES cover all aspects of a business enterprise. • IDES uses easy-to-follow business scenarios to show you the comprehensive functions of the R/3 System. Production. and is used for demos. • It is purely for education . represents a model company. Materials Management. is not the functionality itself. but the business processes and their integration.TRAINEE SERVER (IDES) SAP IDES – the "Internet Demonstration and Evaluation System" in the R/3 System. online/classroom training. Planning. ~ 24 ~ . and customizing). • The focal point of IDES.It is a training server. including Human Resources. transaction data. however. first IDES is installed so that users become familiar with different screens and transaction codes. used to give training to users. Product Cost Planning. • SAP regularly updates the IDES data (master data. IDES shows you the possibilities of the integrated applications in the SAP System. • When sap is implemented in company. • Above all. Profitability Analysis. Sales and Distribution. Overhead Management.

SAP SALES AND DISTRIBUTION MODULE The Sales and Distribution (SAP SD) consists of all master data. system configuration. This module is integrated with the Material Management (MM) and Production Planning (PP) functional modules. It includes the following information and processes: • • • • • • Customer Master and Material Master data Sales Orders Deliveries Pricing Billing Credit Management ~ 25 ~ . and provides support to customers. and transactions to complete the Order to Cash process. The SD module is an application module for supply-chain and operational performance management. It also allows organizations to input sales price of products for customers and check for open orders.


Currently supporting 150 users All the departments work under the environment of ~ 27 ~ .SAP CONFIGURATION / PROCESSING ENVIRONMENT Hero Cycles has implemented SAP R/3 having following features: • • • SAP R/3 release 4.0B as Front-end.7 Enterprise SAP version 4.7 Enterprise upgrade from 4.

0.4 as Backend RDBMS for R/3 system.6 upgraded to Oracle 9. Three-tier architecture Class B IP addressing Core Builder 9000 (switch from 3COM) is used to provide networking (Client Server) connections to various department within organization.• • IBM AIX with RS/6000 SP Server. Oracle 8.0. IBM P630 Server. ~ 28 ~ .2. • • • • Windows 98 as client operating system. • ABAP/4 as application programming language.


g.To help us portray our structures various organizational elements are defined as e.Normally these would not cover all our needs thus we extend the elements and define them as required .as soon as our organizational units are ready. access is located so that no other changes can be made. A client can be considered to be a synonym for group. The enterprise structure consists of: • Controlling area • Company • Company code • Plant • Storage location • Purchase organization • Sales area • Sales organization • Distribution Channel • Division CLIENT (COMPANY) A client is a self-contained technical unit.ENTERPRISE STRUCTURE In enterprise structure we learn how to portray the specific organizational structure of our company in R/3 system. COMPANY CODE • • A complete Accounting unit can be representing as the smallest organizational unit of external accounting. In standard version . Several company codes can use the same chart of account. • ~ 30 ~ . First we analyze the structures and procedures in our company and then match them to the SAP structures . At Company Code level we create  Balance sheet required by law  Profit and Loss statement. Each company code represents an independent accounting unit.

Product liability and other customer rights of recourse. Sales organization is also used to take for example a regional. Negotiation sales conditions. ~ 31 ~ .SALES ORGANIZATION • • • • The highest-level of organizational unit in SD is Sales Organization. A sales organization assigned to a company code. national or international. Responsible for Distributing goods and services.

~ 32 ~ .DISTRIBUTION CHANNEL • • • Distribution Channel represents strategies to distribute goods and services to customer. The assignment is not unique. DC is assigned to a sales organization. You can share Customer. Material and Condition master data by maintaining a reference/common DC.

DIVISION • • • • • • A Division is used to group material and services. A material can have only one Division. We can make Customer- specific agreements for each Division, for example regarding partial deliveries or pricing within Division. (In CMIR) You can share Customer and Condition master data by maintaining a reference/common Division. A Division is assigned to a sales organization. The assignment is not unique. You can use cross division to enter multiple materials with various divisions in a sales order. You can choose division specific sales, it is controlled by customizing for sales document type.




SALES AREA • • • • • A Sales area is a combination of a Sales organization, DC and Division. It defines the Distribution channel of a Sales organization uses to sell products of certain Division By defining and assigning Sales Organization, DC and division a Sales area not automatically formed, you have to set up a sales area. A sales area can belong to only one company code. Assigning the sales organization to company code creates this relationship. Each sales and distribution document is assigned to exactly one sales area. This assignment cannot be changed. Various master data depending on the sales area, for example customer master data, material master data, price and discount. This system also carries out a number of checks concerning the validity of certain entries according to the sales Area.  Sales area assigned to Credit Control Area.  Sales office assigned to Sales Area  Sales group assigned to Sales office.  Employee of a sales office can be assigned to sales group.




BUSINESS AREA • • • • • The Business Area is a separate business unit for which internal reporting can be carried out. A company code may be divided into multiple business areas. A business area may also be shared by several company codes. Business area is not limited by company codes. For this reason, the business areas in all company codes must have the same description. Using organizational unit is optional. Business area can be used to prepare balance sheets and profit and loss statements not only for company code, but also for other internal areas (E.g., division-related). The relevant business area is determined for each order item according to defined rule. Rules for Business area determination  Business Area assignment by Plant and Item division.  Business Area assignment by sales area.  Business Area assignment by Sales Organization and D.C, Item Division.

PLANT • The Plant is a location where material is kept. Represent a production facilities or Material requirement planning in the System. In sales and Distribution, A Plant represents the location from which Materials and Services are distributed and corresponds to a distribution center. The relevant material stocks kept here. A Plant assigned to a company code. Inventory valuation is done either at company code level or Plant level; however the stock is managed at Storage location level. A Delivering plant assigned to Combination of Sales organization and Distribution channel. A plant is essential for determine the Shipping Point.

• • • •




We can change shipping point in delivery document only at initial create screen before saving the delivery document.  Delivering Plant  Shipping condition. The automatic default value can be later changed manually in sales order if we have planned for a different shipping point. The shipping point is normally determined automatically (At item level) for each item in the sales document. The shipping point is responsible for processing shipping. Various Shipping point can be assigned to same plant. Each Outbound Delivery is processed by exactly one shipping point. a mail depot or a rail depot. A Shipping point can be assigned to multiple plants. Shipping point determination based on these combinations. It can also be a group of employees responsible only for organizing urgent deliveries. The Shipping point can be a loading ramp. A shipping point is under client level.Sales document type OR Customer master data-Sold to Party (Shipping Tab Page) • ~ 36 ~ .SHIPPING POINT • • • • • Shipping Point highest organizational unit in Shipping. A shipping point assigned to a Plant.

 Warehouse Number: The entire warehouse structure is managed under one warehouse Number. picking warehouse with fixed bins. which differ with respect to their organizational and technical features. ~ 37 ~ . Loading group-Material master data (Sales: Gen/plant)  Shipping condition from sales document type has precedence over that from customer master.  Storage Type: The different warehouse areas. are defined as storage types (for example-high-rack warehouse with random storage. This number represents the warehouse complex. Warehouse Number assigned to a combination of Plant and storage location. or shipping area). WAREHOUSE • Warehouse having following organizational units for efficient processing of goods receipt and goods issue.

 Picking area: Below the storage Type level.  goods.  stored immediately after unloading or shortly before loading. The Picking area group Staging area: The staging area is a part of the warehouse where goods are Door: A Door can be used for both the inbound and outbound delivery of together storage bins from a picking point of view. ~ 38 ~ .

ENTERPRISE STRUCTURE (FLOW) • • Sales Organization is assigned to ONE company code A Plant can be assigned to ONE Company Code ~ 39 ~ .

• • • • • A Plant can be assigned to MANY Sales Organizations/Distribution Channels A Plant can be assigned to MANY Shipping Points A Shipping Point is assigned to one or MANY Plants Distribution channel can be assigned to MANY Sales Organizations A Company Code can be assigned to MANY Plants NAVIGATION FOR ASSIGNMENTS ~ 40 ~ .


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: Standard sales order ‘OR’ The Sales area is responsible for execution of sales order on the terms agreed. SALES ORDER (FLOW) ~ 47 ~ .SALES ORDER Definition: A Sales order is an agreement between company and customer for delivery of goods or services at certain time and on agreed terms. All Sales documents are created under a sales area. E.g.

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DETAILED IMPLEMENTATION SAP LOGON Screen When we double click the SAP logon icon on the desktop the following screen appears which prompts you to logon on following servers – 1. IDES (Internal Demonstration and Evaluation Server):-Purely for educational purposes. Production Server: – The checked projects are used here with the live data.6. 2. Double click on ides server ~ 49 ~ .


Password SAP EASY ACCESS ~ 51 ~ .Fields entered are:1. User name 2.

~ 52 ~ .The new SAP Easy Access user menu is the user-specific point of entry into the SAP System. The SAP Easy Access screen is where you will start every session. and is the primary user navigation area.

TRANSACTION CODES SPRO XD01 XD02 XD03 MM01 MM02 MM03 VA11 VA12 VA13 VA21 VA22 VA23 VA01 VA02 VA03 VL01N VL02N VL03N VF01 VF02 VF03 SE16 SE38 DESCRIPTION DISPLAY IMG CREATE CUSTOMER DATA CHANGE CUSTOMER DATA DISPLAY CUSTOMER DATA CREATE MATERIAL DATA CHANGE MATERIAL DATA DISPLAY MATERIAL DATA CREATE INQUIRY CHANGE INQUIRY DISPLAY INQUIRY CREATE QUOTATION CHANGE QUOTATION DISPLAY QUOTATION CREATE SALES ORDER CHANGE SALES ORDER DISPLAY SALES ORDER CREATE OUTBOUND DELIVERY CHANGE OUTBOUND DELIVERY DISPLAY OUTBOUND DELIVERY CREATE BILLING DOCUMENT CHANGE BILLING DOCUMENT DISPLAY BILLING DOCUMENT DATA BROWSER ABAP EDITOR ~ 53 ~ . delete and display data in the system. Each SAP screen has a unique transaction code. SAP provides a standard set of transactions to manipulate i. update. A transaction code is a four-character command that tells the system location of a task.e. insert.SAP TRANSACTIONS For performing any kind of task in the SAP R/3 ERP system. In SAP. a transaction is used. you can use transaction codes as a shortcut or alternative to using the navigation path to get to a system task.

Copy Delete. Check Sales Organization ~ 54 ~ . CREATING SALES ORGANIZATION Menu Path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Define.ORGANIZATION SETUP SALES ORGANIZATION Sales Organization the Sales Organization is central organizational element that controls the terms of sale to the customer. Defining the Sales Organization is the foremost step in customizing SD module in SAP.

Delete.On Choose Activity screen. On the following screen please provide the From (Source) and To (Target) company code. and Check Sales Organization – Double click on it. {In practice please select sales orgn 1000 as source and give a target sales orgn as your own} ~ 55 ~ . select Copy.

~ 56 ~ .

CREATING DISTRIBUTION CHANNEL Menu path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Define. Copy Delete. Check Distribution Channel Click on Define Distribution Channel – New Entries Create your own Distribution channel and save it ~ 57 ~ .

~ 58 ~ . Copy Delete. Check Division – Double Click Create own Division by providing Division and name.CREATING DIVISION Menu Path: SAP IMG → Enterprise Structure → Definition → Logistics .General → Define. Save the inputs.

CREATING SALES OFFICE Sales office: Geographical aspects of the organizational structures in business development and sales are defined using sales offices. If you enter a sales order for a sales office within a particular sales area. A sales office can be viewed as an actual office or perhaps a territory or region. A sales office can be assigned to more than one sales area. Sales offices are assigned to sales areas. Menu path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Maintain Sales Office Save your entries. the sales office must be permitted for that sales area. ~ 59 ~ .

~ 60 ~ . Menu path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Maintain Sales Group Save entries. Sales groups are assigned to sales offices.CREATING SALES GROUP: Sales group: Employees of a sales office can be assigned to sales groups defined for each division or distribution channel.

ASSIGNING DISTRIBUTION CHANNEL TO SALES ORGN Menu path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Distribution Channel to Sales Organization – New entries Creates assignment between your Distribution Channel & Sales Organization and save. ~ 61 ~ .ASSIGNMENT OF ORGANISATION UNITS ASSIGNING SALES ORGANISATION TO COMPANY CODE A sales organization is assigned to exactly one company code. Menu path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Sales Organization to Company code Assign the created Sales Organization to the Company Code.

Every sales process always takes in a specific sales area. Distribution Channel & Division ~ 62 ~ . Sales documents. Creating Sales Area: Menu Path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Setup Sales area Create assignment between your Sales organizations. and billing documents are always assigned to a sales area.ASSIGNING DIVISION TO SALES ORGANISATION Menu path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign = Division to Sales Organization – New Entries CREATING SALES AREA A sales area is a combination of sales organization. distribution channel and division. delivery documents.

~ 63 ~ . ASSIGNING SALES OFFICE AND SALES GROUP Sales Offices are assigned to Sales Area Menu Path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign sales office to sales area → New Entries Enter Sales Area {Sales Organization. If not. distribution Channel & Division} & your Sales Office info and save entries. please save your assignment .If the entry already exists the system will throw a message. Sales Groups are assigned to Sales Offices: Menu Path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign sales group to sales office → New Entries Enter created Sales office and sales group info and assign it by saving your entries.

SAP gives the transaction a document number and adds the document to the transaction data that is already in the system. change. when you create. SAP creates an electronic document for that particular transaction.g. vendor. a vendor master record contains not only general information such as the vendor's name. Master data 2. Transaction data:Transactional data is data related to a single business event such as a purchase requisition or a request for payment.:-Customer Master.. e.CREATING MASTER DATA There are two types of data in SAP: 1. Material master. TCODE. It is a critical aspect of the robustness of the system. or print a document in SAP. e. Vendor master etc. or G/L account. Master data can only be entered and changed by authorized users. For example. 2. for example. Transaction data 1. a cost object. but also purchase order-related information. such as payment terms and delivery instructions. When you create a requisition. address and telephone number. Master data:Master data is a collection of information about a person or an object.g. Whenever you complete a transaction in SAP. These data cannot change frequently and are basic for execution of transaction. Purchase order ~ 64 ~ .VS00. Sales order 2.Master Data is records that remain in the database over an extended period of time. that is. this document number appears at the bottom of the screen. Examples: o o Customer Master Material master This structure eliminates redundant data and is shared by all SAP Modules. The following are the transaction data: 1.


The Customer Master data divided in following categories.  General Data: The general data is relevant for sales and distribution and for accounting. It is stored centrally (client specific), in order to avoid data redundancy. It is valid for all organizational units within a client.
 Sales Area Data: The sales area data is relevant for sales and distribution. It is

valid for the respective sales area (sales organization, distribution channel, division).
 Company Code Data: The company code data is relevant for accounting. It is

valid for the respective company code.




It includes all necessary data for processing Order, Deliveries, invoices and Cust. Payment  General data having on following tab  Address: Name, Address, and Language.  Control Data: Tax Information  Payment Transaction: Bank Details  Marketing: Industry, Customer Classification  Unloading Point: goods receiving Hours  Export Data: Data for export control  Contact Person: Address of business partner  Sales Area data having following tab pages.  Sales: Sales office, sales district, currency, customer group, Customer pricing procedure, Price list.  Shipping: Delivery, Shipping condition, Delivery Plant, POD Relevance, Partial delivery-Check Complete delivery by law, Transportation Zone.  Billing: Incoterm, Term of payment, Credit control area, Account Assignment Group, Tax.  Partner Function: (Can different or Identical) Sold to Party, Ship to Party, Bill to Party, Payer  Company Code data having on following tab  Account management: Reconciliation account  Payment transaction: Payment method  Correspondence: Dunning Procedure, Accounting clerk  Insurance: Amount Insured • Any changes in the customer master do not get reflected in documents created prior to the change except for ADDRESS. • Sales organization has to maintain own relevant sales area data if they sell product to customer those belong to different sales organization. • Account group controls customer master. Menu Path: SAP Easy Access → SAP Menu → Logistics → Sales and Distribution → Business partner → Customer → Create → Complete T Code → XD01




GENERAL DATA Account Group: An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It controls Number ranges and Fields that appears while creation of customer. Select standard account group ‘Sold-to party R/3 → 0001 ’





This data will be created at Client level. Sales Orgn – 1000 Distribution Channel – 10 & Division 00 Enter the general data specific to your customer.g. The data stored will be specific to a Company Code.g. • • • ~ 68 ~ .GENERAL DATA • • • Enter your company code for e. 1000 Enter the defined Sales area E. Data will be shared by all company code under that client.




Click on tab ‘Shipping’ Enter data relevant for shipping. Please ensure input for these fields. Delivery Priority. Shipping Conditions & Delivering plant are the fields which will be referenced at various levels of sales order processing. ~ 72 ~ .

Incoterms.Click tab ‘Billing Documents’ Enter billing relevant details for the customer. Terms of payment and Tax condition are the necessary data. Enter Tax condition as ‘0’. ~ 73 ~ .

~ 74 ~ . Enter and save the customer.Partner functions Tab: Creates all necessary partners associated with this customer.






~ 80 ~ .

work with the same material. but uses different information on the material. Select the views by clicking on it and after selection Click enter.MATERIAL MASTER DATA • All the information to manage a material is stored in a data record in the material master. Please Note to create a standard material the following tabs are to be selected. sort by various different criteria. ~ 81 ~ . • Different departments in a company. CREATING MATERIAL MASTER Menu Path: SAP Easy Access → SAP Menu → Logistics → Sales and Distribution → Master Data → Material → Other material → Create TCode: MM01 A view screen will pop up on this screen we need to select the tabs that are necessary for creation of a material.

Sales: Sales Org. A Material is created under Organization levels Plant. Accounting 1 & Accounting 2. Classification. Data 1. MRP 1. Sales Organization & Distribution Channel.Basic Data 1 . Sales Sales Org. ~ 82 ~ . Sales General/Plant Data. General Plant Data / Storage 2. Basic Data 2. Data 2. General Plant Data / Storage 1. Storage location.

Storage Location. Entering basic data for Material creation: Basic Data1: Enter Material Description. ~ 83 ~ . Gross weight and Net weight of the material. Base Unit of Measure.. Sales Organization & Distribution Channel and enter.Provide input for Plant. Understanding material creation screen: Different TAB pages of Material master creation can be seen by clicking onto this next tab icon.

Goto Sales: General/Plant ~ 84 ~ . Item category group is an important field to determine respective Item category for a sales order.Click on Sales Org 2 Tab: Ensure that the entry for Item category group exists at this page.

Transportation group is a key element in determining the Route & Loading Groups for determination of shipping point at Sales order processing stage. Transportation group & Loading Group. On the MRP1 tab: MRP tab entries will be used to determine the method system uses to work on materials requirement planning ~ 85 ~ .Important fields are: Availability check.

~ 86 ~ .Save the Material created.

Plant. ~ 87 ~ . you can quickly find detailed information about current status of SD process. Rates are valid for Particular Period. Automatic availability checks pop out.SALES PROCESS CREATION SALES DOCUMENT • The sources of data in a sales document are Master data  Customizing  Other SD document/Existing document with data • In sales order with fast change option you can change – Reason for rejection. currency and Pricing.e. delivery date. • In status overview in document flow. you can branch to individual documents by double clicking and to display of a document and then return to document flow. Delivery block. Billing block. delivery priority and Plant. Materials. You can view all the documents within the document flow in a list. An item status is deemed completely if it has rejected by giving a reason of rejection. Time Sensitive i. this process chain is stored in the document flow. With Mass change option in a sales document list you can change. INQUIRY AND QUOTATION • • • Supports Pre-Sales Process. • • DOCUMENT FLOW • • A sales process is made up of the sequence of individual process steps. recorded as documents.

CREATE INQUIRY ~ 88 ~ .• Can be used as Reference document.



~ 91 ~ .



~ 94 ~ .

Delivery and Scheduling. MRP (Material Requirement Planning).SALES ORDER • Core of Customer Order Management. Pricing (Automatic function). Shipping and routing. Credit check (For customer). Copies the key information from Master Data. • • • • • • • CREATE SALES ORDER ~ 95 ~ . Availability Check.





Header and Item. You can use the outbound delivery monitor to execute important follow-onfunctions in collective processing in the background ( for example-transfer orde creation for picking. Outbound delivery monitor • The outbound delivery monitor displays all deliveries that are still to be processed or that have just been processed. continues along a route. These elements are header fields in the outbound delivery. continues along a route. Structure Delivery Document • A delivery Document has two level.DELIVERY OF GOODS Each outbound delivery starts at a shipping point. There is no schedule line. and has ship to party as the destination. • Each outbound delivery starts at a shipping point. and has ship to party as the destination. or posting of goods issue). ~ 100 ~ . The reason is each schedule line in the sales order can become an item in delivery document.











A transfer order is an instruction to move material from a source storage bin to a destination storage bin within a warehouse complex. The transfer order include the information like-material number, quantity to be moved, source and storage bin. With WM precise inventory management at the level of the storage bin is possible and used for warehouse with random storage. This is not possible with lean WM and hence suitable for fixed bin warehouse.

You can Group Transfer order based on the warehouse number.





~ 105 ~ .

~ 106 ~ .



Reduce delivery requirement. Is store in document flow and update status of preceding document Create work list for billing.DELIVERY SAVED POST GOODS ISSUE (PGI) • • • • • • Reduce warehouse stock Post the value change to the stock accounts in inventory accounting Enter status information in the outbound delivery. ~ 109 ~ .


output determination. This allows documents to be creating automatically in financial accounting and controlling when you create billing documents. the R/3 system carries out a debit posting on the customer receivables account and a credit posting on the revenue account. which can be changed before an accounting document created: Billing date. account determination. In that case you can set a posting block for the billing type concerned. • The data. • You might not want the data to be transferred automatically for certain billing types. An important part of billing is the interface to financial accounting. pricing. ~ 111 ~ .BILLING • • • A Billing document has two levels-Header and Item When you create a billing document in account. After posting accounting you can change only output data.


~ 113 ~ .



~ 116 ~ .



7. CONCLUSION ~ 119 ~ .

~ 120 ~ .creates a document flow. deliver. The customer next requests a quotation ‘ which then create by referring to the inquiry. quotation. Data about the material and services as well as about the business partner is the basis for sales processing. they are generating sale document. The sales department accepts the sales order from the customer i. The company creates a free of charge delivery with reference The entire chain of documents – inquiry.In sales process the product are sold or sent to the business partners (customer) or services are performed for them. which is not an individual set or documents but forms a chain of inter-related document.e. The customer later places on order on the basis of quotation Then the organization ships goods and bills the customer After delivery of the good. the customer claims credit for some damaged goods. The flow of data from one document into other reduces manual activity and makes problem resolution easier. it includes:• • • • • • The sales departments in a company record a customer’s inquiry. invoice and the subsequent delivery free of change. The inquiry and quotation management parts of the sales information system help to plan and control sales. sales order .

sales process is very crucial. ~ 121 ~ . Sales and Distribution module will have lot of demand. Customers are the primary concern of every organization. Almost all the large scale enterprises use SAP. it provides complete integration of all the areas of the business/company/enterprise. so to provide them right services at right time. This is the module which interacts with the customers. Sales and Distribution is the important area for any company. In future. SAP is entirely designed for enterprise. as many small scale and medium scale companies are also switching to SAP.FUTURE SCOPE SAP is the most growing technology.

Screen Body. maximize. 1) Screen Header: The Screen Header displays the name of the current system. ~ 122 ~ .ANNEXURE SAP screen has seven main areas: Screen Header. TitleBar. and Status Bar. Standard Toolbar. and client you are working in. Menu Bar. and close. session. On a PC it displays standard Window buttons such as minimize. Application Toolbar.

click the arrow to the left of the Save button. To use it. 3) Standard Toolbar: The Standard Toolbar contains the Command field and the standard SAP Toolbar buttons.  Standard Toolbar Buttons The SAP buttons displayed on the Toolbar provide quick access to commonly used SAP functions. It contains buttons that duplicate functions available from the menu bar but provide quicker access to some of the most commonly used functions for the current screen and system task. BUTTON KEYBOARD SHORTCUT CTRL G F1 CTRL PAGE UP PAGE UP PAGE DOWN CTRL PAGE DOWN DESCRIPTION CONTINUE SEARCH HELP SCROLL TO TOP OF DOCU SCROLL UP ONE PAGE. (PC ONLY) NONE (PC ONLY) 4) Title Bar: The Title Bar displays the name of the screen you are working in. Command Field The Command field is used to enter transaction codes that take you directly to a system task without using menus. 5) Application Toolbar: The Application Toolbar is located directly below the screen title. ~ 123 ~ . type the transaction code in the blank field to the left and press Enter.2) Menu Bar: The Menu Bar contains menus for the functional and administrative areas of the system. If a Toolbar button is gray.  BUTTON KEYBOARD SHORTCUT ENTER KEY CTRL S F3 SHIFT F3 F12 CTRL P CTRL F ALT F12 DESCRIPTION ENTER/CONTINUE SAVE BACK EXIT SYSTEM TASK. it is not available for use on that particular screen. SCROLL TO LAST PAGE O CREATE NEW SESSION. CANCEL PRINT FIND CUSTOMIZE LOCAL LAYOUT. SCROLL DOWN ONE PAG. Sometimes the Command field is closed by default. To open it.

You must enter data in Required Entry fields in order to proceed with a system task. Default. SAP has three field types. Optional Entry fields are those in which you may enter data. or display information to accomplish your system task. Required. change. the screen contains are the navigation area and the non-active work area. but an entry is not required by the system in order to proceed with a system task. located at the bottom of the SAP screen. In an SAP transaction screen. 7) Status Bar: The Status Bar. displays system messages and other session information. you may be able to overwrite the system entry depending on the system task and / or your SAP profile. However. the screen body contains only the work area and has entry fields in which you can enter. and Optional: Required Entry fields are usually flagged with a question mark. Some Optional Entry fields may become required depending on the values entered in other fields. Default Entry fields already have a system entry. ~ 124 ~ .6) Screen Body: On the SAP User Menu screen and the SAP Standard Menu screen.

com www.com www.com www.com ~ 125 ~ .sap.sapzone.sapinfo.help.sap-img.sap.com www.REFERENCES USED AND BIBLIOGRAPHY BOOKS:• SAP SD ( FUNCTIONALITY AND TECHNICAL CONFIGURATION) BY MARTIN • SAP ONLINE LIBRARY HELP WEBLINKS:• • • • • • www.sapgenei.com www.

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