Sales and Distribution Overview <Site>

Right Solution, Right Time, Right Price

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Business Process Workshop

The objectives of the Sales and Distribution Overview workshop is to:
Provide an overview of the Sales and Distribution Business Process Demonstrate how SAP will be used to manage this process

Agenda
Topics: I. Master Data in Sales & Distribution II. The SD Business Process III. Collection IV. Reporting and Analysis

I. Master Data in SD

Master Data in Sales & Distribution

Master Data is centrally stored (shared across application modules) and processed to eliminate data redundancy. These three master data records are critical to sales order processing: Customer Master Material Master Pricing Condition

Customer Master Record

Consists of the following views: General Data

Company Code Data

Sales Area Data

Customer Master
The customer master contains all customer-related data necessary for processing orders, deliveries, invoices, quotation and customer payments. A customer number will be automatically assigned to a new customer at the time of customer creation. 99% of our customers will belong to one Sales Area. If a customer belongs to more than one Sales Area, SAP will prompt you to choose one at order entry.

General data Sales & Distribution data Company code data

Customer Master Record

Client General data Bank details

General data

Company code - Y012

Company code data Reconciliation acct Payment terms Sort key 121000 NT30 001

Sales data Sales district Sales office Price group 00001 01 01

Accounting data
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Sales area data

Customer Master
View
General Address Data:

Field Groups Address Communication Tax Jurisdiction Account Control Tax Information Reference Data/ Area

Control Data

Marketing

Not implemented in current Stage

Customer Master
View
General Data:

Field Groups Bank Details Payment Transactions

Payment Transactions

Unloading Points

Unloading Point Customer Factory Calendar

Contact Person

Not implemented in current Stage

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Customer Master
View
Company Code Data:

Field Groups Account Management Interest Calculation Reference Data Payment Data Automatic Payment Transactions Payment Advice Notes Dunning Data Correspondence Payment Notices To

Account Management

Payment Transactions

Correspondence

Insurance

Export Credit Insurance

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Customer Master
View
Sales and Distribution Orders Data:

Field Groups Sales Office Sales Group Customer Group

Shipping

Delivery Priority Delivering Plant Partial Delivery Indicator

Billing

Terms Of Payment Tax Classification

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Customer Master
View
Sales and Distribution Partner Function Data:

Field Groups Sold To Customer Ship To Customer Bill To Customer Payer Customer Forwarding Agent Sales Employee 3rd Party Rep

Partner Function

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Business Partners
Customer master records can be defined as business partners. The following four partners are mandatory in the sales order (when creating a Sold-To customer all 4 are automatically created):

Sold-to party

Ship-to party

Customer Master

Bill-to party
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Payer

Account Group
Create sold-to party
Customer Sales organization Distribution Channel Division Account Group : : : : : 1000012 0010 10 02 0001

ACCOUNT GROUP
0001 0002 0003 Sold-to party Ship-to party Payer

Field selection Number Assignment One-time account: yes/no Output Proposal

0004
Z001

Bill-to party
Related Party

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Material Master
The material master contains all data required to define and manage material.
It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting, and other departments.

The material master is used as a source of data for sales order processing throughout the customer order management cycle.
General data Purchasing data Accounting data Sales data Manufacturing data (etc.)

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Pricing Condition Record

Condition Type: PR00

Condition types determines selling price of materials

Automatically copied into Sales Order

Pricing Master Records are located in condition types in Sales and Distribution. Material Price (known as List Price in BOSS) is no longer maintained in the Material Master Record.

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Prices and Discounts

Conditions

Prices

Discounts/surcharges

Price list Material price Customer/material

Customer Customer/Material pricing group 3rd Party Commissions

Pricing is carried out automatically based on predefined prices, discounts, and surcharges. Prices can be manually overrode on the sales order (when applicable).

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Sales & Distribution Overview

Review Questions
In SAP, a customer is also referred to as this. What is the means through which material/services reach the customer called ? What is the combination of the sales organization/distribution channel and division referred to as ? What are the 3 views in the customer master called? Where is the material price (known as list price today) stored in SAP? What is the physical location where material is managed called?

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II. The SD Business Process

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Business Processes Cycle

Sales Order Processing Sales Order Processing Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

Delivery Delivery

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Business Process Summary

S A L E S I N F O R M A T I O N S Y S T E M

Pre-Sales
Contract Contract Quotation Quotation Inquiry

Sales Order Processing Inventory Sourcing Delivery

Order

M A T E R I A L S
M A N A G E M E N T

Delivery Delivery

Picking Picking

Goods Issue Goods Issue

Billing
Customer payment/ Financial Accounting

Invoice

Accounts Accounts Receivable Receivable

Material Stock Material Stock Account Account

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Review of Business Processes

Sales Order Processing Sales Order Processing

Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

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Delivery Delivery

Pre-Sales
Data from Inquiry

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Pre-Sales
Can be used to generate a Quote, Order, etc

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Sales
Which can be used to generate a Sales Order

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Review of Business Processes

Sales Order Processing Sales Order Processing

Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

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Delivery Delivery

Sales Order Processing

Customers place orders Standard orders normally contain:
Customer and material information Pricing for each item Delivery schedules and requirements Billing information

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Business Process Flow in SAP

Order Delivery Invoice Payment

Document flow of a sales document

Order 900 . Delivery 80000459 . . Picking request 17951109 . . GD goods issue: delvy 49001828 . . Invoice 90000333 . . . Accounting document 100000276

Sales documents represent transactions in the system. They form a chain of related documents. The entire chain of documents creates the document flow. The system copies data from one document into another to reduce data entry and make problem resolution easier.

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Creating an Order
Customer master
Sold-to party
Item 1 Material

1000016
Quantity 10

SGMAH-02BAF41

Material master

SH10VA-S50

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When you create a sales order without reference, the system automatically copies the:

Sold-to party and its partner data from the Customer Master records

Line item or material data from the Material Master record

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Review of Business Processes

Sales Order Processing Sales Order Processing

Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

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Delivery Delivery

Availability Check in Order Processing

Availability check occurs during sales order, rescheduling and delivery processing: It occurs in the plant determined for the customer/material

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Availability Checking in SAP

Advantages of the Availability Check:
Real-time status of inventory allocation Accurate delivery dates Automatic scheduling Configurable scope of check for inward and outward movements Considers lead times

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Inventory Sourcing
Inventory Sourcing determines: If the product is available (availability checking) How the product will be supplied:
From stock on hand By replenishment activities (production order, purchase order) Make to order Shipped by an external supplier (3rd Party) Shipped from another warehouse

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Backorder Processing
Backorder processing is a manual process of reallocating stock from one sales order to another.
Stock allocated and confirmed for one sales order can be moved manually to another sales order. You should use an availability check indicator in which requirements are processed individually. This makes the sales order number visible on the backorder processing screen.

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Review of Business Processes

Sales Order Processing Sales Order Processing

Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

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Delivery Delivery

Delivery
Warehouse
Sales order Delivery document

Creating delivery documents

Picking

Manual Packing

.......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .... ... .... .. .. .. . ... .... ... .... ... .... ...

Shipping papers

Goods issue

Updating inventory Updating general ledger

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Creating Delivery Documents

Sales Order 1 Customer 1 Sales Order 2 Customer 1 Sales Order 3 Customer 2 Shipping point Due date Customer Delivery Delivery

The delivery document is used to initiate all activities relevant to shipping, such as picking, packing, and transportation. A delivery document is created for a shipping point for an order that is due for delivery. The system copies the relevant data from the order.

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Different Types of Order Fulfillment

Complete delivery
Sales order Delivery Delivery

Partial delivery

Sales order

Delivery

Delivery

Sales order

Order combination
Sales order

Delivery

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Collective Processing in Delivery

Delivery due list
Sales order Sales order Sales order Sales order Sales order Sales order Delivery Delivery Delivery

The delivery due list allows you to create more than one delivery at a time. This function can be executed by: Online processing of the delivery due list Creating a batch job in the background to be executed during off-peak hours

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Review of Business Processes

Sales Order Processing Sales Order Processing

Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

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Delivery Delivery

Billing
Billing supports:
Creating invoices for deliveries and services Creating credit and debit memos on the basis of requests Canceling business transactions Transferring posting data to financial accounting
Invoice

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Options for Creating Invoices

Invoice split
Sales order Delivery Invoice

Invoice

Delivery

Invoice

Separate invoice per delivery

Sales order Delivery Invoice

Sales order

Delivery Delivery

Collective invoice
Sales order

Invoice

Delivery

The system can create a separate invoice for each sales order or part of a sales order, an invoice for each delivery, or an invoice for a combination of sales orders and deliveries.
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Collective Processing in Billing

Billing due list
Delivery Delivery Delivery

Delivery
Delivery Delivery

Invoice Invoice Invoice

The billing due list allows you to create more than one invoice at a time. This function can be executed by: Online processing of the billing due list Creating a batch job in the background to be executed during off-peak hours
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III. Collections (Returns / Credit)

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Review of Business Processes

Sales Order Processing Sales Order Processing

Inventory Sourcing Inventory Sourcing

Pre-Sales Activities Quotation

Invoice

Payment Payment Billing Billing

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Delivery Delivery

Customer Payment
Final step of the cycle Customer Payment includes:
Posting payments against invoices Reconciling differences, if necessary

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Returns and Credits Overview

Return Order Processing

Receipt

Payment

Credit Memo

Billing

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When Do Credit and Debit Memos Occur?

Order Delivery Billing

Return order (authorization)

Return Delivery

Credit memo

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How Are Returns Processed?

Invoice

Return request (authorization)

Sales Order

Returns delivery

Credit memo

Order reason required to create Return Order

Accept returned goods (Post goods issue)

Place in restricted stock
Invoice

Credit memo created after removing the billing block.

Billing block

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Credit and Debit Memos

Credit Memos
Invoice

Credit memo request

Sales Order

Credit memo
Invoice

Debit Memos
Invoice

Billing block

Debit memo request

Sales Order

Debit memo
Invoice

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IV. Reporting and Analysis

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Reporting and Analysis in SAP R/3

Standard Reporting
Lists documents and master data Provides analysis through sorting and totals Displays details

List Processing
Lists selected documents Allows you to branch to documents and return to list Helps organize work
Billing Due List Delivery Due List Incomplete Sales Documents List

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Initial List
Customer Analysis-New Selection: Initial List
Key figures

The standard analysis initial list shows key figures according to the characteristics and time period specified. From this screen, you can access different evaluation functions (e.g., ABC analysis, classification, dual classification, totals curve) to further analyze the key figures.

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Initial List
Customer Analysis-New Selection: Initial List
By double-clicking on an individual customer, you can drill down and view all of the totals by period for this customer.

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With a double-click, you can drill down for even more detail.

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Editing the List

Customer Analysis-New Selection: Top Five Customers

NOTE: Credit Memos was used due to insufficient data at time of course development.

You can further edit the list. This example shows:

The top five customers (View > Top N)

Other figures (Edit > Choose key figs)

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Sales & Distribution Overview

Review Questions
When are the 3 times that availability checking occur? What is the chain of SD documents called? What information is required when entering a return order request? What process needs to take place for a Credit Memo to be generated from a Credit Memo Request? Who processes the delivery on the return order?

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This course was developed with the assistance of:

Right Solution, Right Time, Right Price

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