SD Module

Sales & Distribution Organization Structure

Key SAP Concepts - Organizational Elements

TEIL

COMPANY CODE

SALES ORGANIZATION

DISTRIBUTION CHANNEL

DIVISION

BUSINESS PARTNERS SALES OFFICE SHIPPING POINT

PLANT

SAP Terminology
Company Code Company Code represents an independent accounting unit.
STBG

Sales Organisation
In conjunction with Distribution Channel, establishes a relationship with Plant(s) for product availability for sales. Assigned to only one Company Code

Company

Sales Org.

Sales Org.

Distribution Channel

Distribution Channel

Distribution Channel

Division

Division

Division

Division

SAP Terminology
Sales Organization Sales Organization represents a selling unit in the legal sense, being responsible e.g. for product liability and other recourse claims made by customers.
Geographical or other logical sub-division of a Company Represents a selling unit in the legal sense Top level for invoicing aggregation

Bangalore

SAP Terminology
Distribution Channel Distribution Channel is the means through which sales material or item reaches the customer e.g.Stockist.

Direct(D1)

Bangalore

Customers

SAP Terminology

Division

Division can be used to segment a business into product lines e.g. Steam Turbine or Spares
Products

SteamTurbine

Spares

SAP Terminology
Sales Area Sales Area is a combination of Sales Organization Distribution Channel Division
Sales Organization Distribution Channel Division Bangalore

Direct

Turbines

Sales and Distribution : Functional Elements

Sales Area
A specific combination of sales organization, distribution channel and division

Divisions Lubes Bulk

Sales Office
Organizational unit that reflects the geographical aspects of a sales organization

Sales Group
Organizational unit that carries out sales transactions and is internally responsible for them

SAP Terminology
Sales Office Sales Office represents geographical aspect of the organization in business development and sales
ALBD-Sales office Allhabad
DELH- sales office Delhi HYBD- Sales office Hyderabad BGLR- Sales office Bangalore

KHLP- Sales office Kolhapur

LATR-sales office Latur MUMB-sales office Mumbai NUAL- Sales office Nualign PUNE- sales office Pune VWDA-sales office vijayawada

SAP Terminology
Plant
Plant produces goods, renders services or makes goods available for distribution. A Plant can be a Manufacturing facility e.g. Bangalore Depots e.g. Delhi

Bangalore

Delhi

SAP Terminology
Shipping Point Shipping Point is a fixed location that carries out the shipping activity.

Bangalore
SHBR - Shipping Point Bangalore

Delhi
SHDL- Shipping Point Delhi

Business Partners
Sold to Party Ship to party Bill-to-Party Payer Consultants Franchisee

Business partners are those natural & legal persons with whom company deals during business transactions.

Overview of SD Organizational Model

Client

Company Code Business Area Sales Area Plant

Sales Office

Division

Sales Organization

Distribution Channel

Shipping Point

Customer Order Management Cycle

SAP-SD Functionality

Sales Order Delivery & Shipment Transportation Billing Pricing Credit Management Scheduling Agreements Excise Processes (CIN) IS-OIL Related Processes Information & Analyses

Business Process in COM Cycle

Pre Sales Activity

Inventory Sourcing

Sales Order Processing

Invoice

Delivery
Payment Billing

Sales Process
Inquiry Quotation

1. Inquiry

2.Quotation

Sales Quotation Order

3.Sales Order

4.Out bound Delivery

Outbound Delivery for Sales Order

Invoice

5.Invoice

6.Debit / Credit Notes

Sales Order Processing

Goods to Customer
9

Order receipt

Invoice to Customer

Order

2 Order creation
Header data

Billing Document

7
Customer

Availability check

Picking & Post Goods Issue

Plant

Item Data

Material Quantity Price

100

20 50

Procurement/Production Processing

Delivery Processing

Key SAP Concepts

Information in Sales Order
Customer & Item Information

Pricing of each item

Delivery schedules

Billing Information

Delivery Process
Shipping Point Storage location

Order

Availability Check Creating deliveries

Picking
Invoice

Goods Issue Transportation

Invoice

ATP Check ( Available To Promise )

When sales order created, the system would run ATP check automatically. The system would consider the current unrestricted use stock minus the stock which has been reserved for other open sales order and open delivery. The ATP check would be carried out at 2 levels which are at sales order creation stage and delivery note creation stage.

Transfer of requirement
The sales order generated at Depot for normal customer (RD/SD/MT), the sales requirement would not be passed to production since the same has been considered in monthly PIR. If sales from Depot and factory to special customer order will be booked through special sales order (eg: export, institution etc ), after approval by VPs, logistic department would check the inventory at Depot or factory, then decide whether the requirement would be passed to production or not.

Remark : Credit Management

Credit checking will be based on Credit limit and open overdue AR. --- If the customer is Demand Draft customer, the credit limit would be ZERO. Instead, the demand draft would be key in as down payment before sales order creation. --- If the customer is cheque customer, the credit limit would be set by sales controller. Sales order would be blocked for delivery once credit check fails. Sales orders need to be released first by Accounts Manager and Sales controller, then the order could be processed further.

Key SAP Concepts

Delivery
Delivery is the central shipping document Delivery can refer to Sales Order Stock Transportation Order

Key SAP Concepts

Picking
Picking involves picking correct quantity of the required delivering quantity of goods for shipping on schedule.

SAP Key Concepts

When the goods have left the plant, the business transaction is regarded as completed from the point of view of shipping. When the goods are issued following functions take place in the system The material stock is reduced by the goods issue quantity and corresponding value change takes place in accounting. Material requirement for delivery are reduced.

Post Goods Issue

The delivery status is updated.

The delivery enters the billing due list..

Billing Document
The term Billing Document covers Invoices on the basis of goods & services Credit & Debit Memos based on corresponding request Pro-forma Invoices Cancellation Documents
Billing Document

Effects of Creation of Billing Document

Billing Doc.
Customer Credit Account

Accounting

Requirements
Dr. Cr.

Delivery Order

Invoice Cancellation
Billing Document

It may be necessary to cancel an Invoice due to number of reasons: There has been a discrepancy with the pricing There could be some human mistake while creating the invoice

Key SAP Concepts

Pricing
Pricing is used to describe the calculation of prices and costs

Condition Types
Condition type is a representation in the system of some aspect of daily pricing activity eg:- selling price(PR00)

Pricing Condition Records

Condition Record for selling price Material condition qty price type Bearing1 PR00 Bearing2 PR00 1 1 1000 1000

Document Flow
Document Flow
Document Flow describes the history of the sales document Inquiry .Quotation ..Sales Order Delivery .Invoice .Credit/Debit memos

Document Flow in Sales & Distribution

Sales
Inquiry

Quotation

Return Order

Sales Order

Free of Charge Order

Shipping Billing
Credit Memo

Delivery

Billing Document

Debit Memo

Incompletion Log
Incompletion Log is a dialog box which gives a list of all the mandatory fields in the document which were nor filled while creation the document

SD Master Data
Customer Master Data Material master data Excise Master data Pricing masters ie Condition Records

SD Module
MM PP

Materials Management Production Planning Plant Maintenance

CO

PM

SALES
FI

Controlling Financial Accounting

MASTER DATA
SHIPPING

PS

Project System

MM

Materials Management
FI

Financial Accounting

FI

Financial Accounting Controlling

BILLING
CO

Master Data

General

Master Data
(e.g. Customer Data)

Data Accounting Data (unique to company)

Sales Data (unique to

(common
across client)

Sales Area)

Material Master
Central repository of information on materials for the enterprise
Contains descriptions of all materials that an enterprise procures, and keeps in stock produces

Integration of all material data in a single materials database eliminates the problem of data redundancy
Prevents redundant storage of material data when the same material is used in more than one plant or stored at more than one storage location

Material Master Views

Basic Data 1 Purchasing Foreign Trade Import Purchasing Text MRP 1 MRP 2 MRP 3 MRP 4 Forecasting Work Scheduling Storage 1 Storage 2 Warehouse 1 Warehouse 2 Quality Mgmt Accounting 1 Accounting 2 Costing 1 Costing 2 Plant Stock Stor Loc Stock

Basic Data 2
Classification Sales Org 1

Material

Sales Org 2 Sales/Plant Foreign Trade Export Sales Text

Use of Master Data in Sales Documents

Sales Order

Customer Master Data

Pricing Conditions

Material Master Data

Texts/Remarks

Business Partners