1 Right Solution, Right Time, Right Price Sales and Distribution Overview

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Right Solution, Right Time, Right Price

Sales and Distribution Overview<Site>

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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

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Agenda

Topics:

I. Master Data in Sales & Distribution

II. The SD Business Process

III. Collection

IV. Reporting and Analysis

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I. Master Data in SD

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• 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

Master Data in Sales & Distribution

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Customer Master RecordConsists of the following views:

GeneralData

Sales AreaData

Company CodeData

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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 dataGeneral data

Sales & Distribution dataSales & Distribution data

Company code dataCompany code data

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Customer Master Record

Reconciliation acctReconciliation acct 121000121000Payment termsPayment terms NT30NT30Sort keySort key 001001

Reconciliation acctReconciliation acct 121000121000Payment termsPayment terms NT30NT30Sort keySort key 001001

Sales districtSales district 0000100001Sales officeSales office 0101Price groupPrice group 0101

Sales districtSales district 0000100001Sales officeSales office 0101Price groupPrice group 0101

General data

Bank details

Company code data Sales data

Accounting data Sales area data

General data

Company code - Y012

ClientClient

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Customer Master

Account ControlTax InformationReference Data/ Area

Control Data

AddressCommunicationTax Jurisdiction

Address

View Field Groups

GeneralData:

Marketing Not implemented in current Stage

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Customer Master

Not implemented in current Stage

Contact Person

Unloading PointCustomer Factory Calendar

Unloading Points

View Field Groups

Payment Transactions

Bank DetailsPayment Transactions

GeneralData:

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Customer Master

View Field Groups

Account ManagementInterest CalculationReference Data

Account Management

Payment DataAutomatic Payment TransactionsPayment Advice Notes

PaymentTransactions

Export Credit InsuranceInsurance

Dunning DataCorrespondencePayment Notices To

Correspondence

CompanyCode Data:

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Customer Master

View Field Groups

Sales OfficeSales GroupCustomer Group

Orders

Delivery PriorityDelivering PlantPartial Delivery Indicator

Shipping

Terms Of PaymentTax Classification

Billing

Sales andDistribution

Data:

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Customer Master

Forwarding AgentSales Employee3rd Party Rep

View Field Groups

PartnerFunction

Sales andDistribution

Data:

Sold To CustomerShip To CustomerBill To CustomerPayer Customer

Partner Function

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Business Partners

CustomerCustomerMasterMaster

Ship-to party

PayerBill-to party

Sold-to party

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):

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Create sold-to partyCreate sold-to party

Account Group

Customer : 1000012

Sales organization : 0010

Distribution Channel : 10

Division : 02

Account Group : 0001

Customer : 1000012

Sales organization : 0010

Distribution Channel : 10

Division : 02

Account Group : 0001

0001 Sold-to party

0002 Ship-to party

0003 Payer

0004 Bill-to party

Z001 Related Party

0001 Sold-to party

0002 Ship-to party

0003 Payer

0004 Bill-to party

Z001 Related Party

ACCOUNT GROUPACCOUNT GROUP Field selectionNumber AssignmentOne-time account: yes/noOutput Proposal

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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 dataGeneral data

Purchasing dataPurchasing data

Accounting dataAccounting data

Sales dataSales data

Manufacturing dataManufacturing data

(etc.)(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

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

ConditionsConditions

Price list Material price Customer/material

Price list Material price Customer/material

PricesPrices

Customer Customer/Material pricing group 3rd Party Commissions

Customer Customer/Material pricing group 3rd Party Commissions

Discounts/surchargesDiscounts/surcharges

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Sales & Distribution OverviewReview 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

QuotationPre-Sales Activities

Sales Order ProcessingSales Order Processing

Inventory SourcingInventory Sourcing

DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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Business Process Summary

MMAATTEERRIIAALLSS

MMAANNAAGGEEMMEENNTT

Pre-Sales

Delivery

Billing

PickingPicking

Accounts Receivable

Accounts Receivable

Inventory Sourcing

ContractContract

SSAALLEESS

IINNFFOORRMMAATTIIOONN

SSYYSSTTEEMM

Invoice

Order

QuotationQuotation

DeliveryDelivery Goods IssueGoods Issue

Material Stock Account

Material Stock Account

Sales OrderProcessing

Customer payment/Financial Accounting

Inquiry

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Review of Business Processes




DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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Pre-Sales

Data from

Inquiry…

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Pre-Sales

Can beused togenerate aQuote, Order,etc…

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Sales

Which can beused togenerate aSales Order

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DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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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 SAPInvoiceDeliveryOrder

Document flow of a sales documentDocument flow of a sales document

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

Document flow of a sales documentDocument flow of a sales document

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

Payment

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

Material masterMaterial master

Customer masterCustomer master

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

Item

1

2

Material

SGMAH-02BAF41

SH10VA-S50

Quantity

10

20

Sold-to party 1000016

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DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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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 SAPAdvantages 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 SourcingInventory 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 ProcessingBackorder 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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DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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Delivery

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

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

WarehouseWarehouse

• Manual PackingManual Packing

• Shipping papersShipping papers • Goods issueGoods issue

SalesSalesorderorder

• PickingPicking

• Updating inventoryUpdating inventory• Updating general ledgerUpdating general ledger

DeliveryDeliverydocumentdocument

• Creating delivery Creating delivery documentsdocuments

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

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

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

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

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Creating Delivery Documents

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.

Sales Order 1Customer 1



Delivery

Shipping pointDue dateCustomer

Delivery

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Different Types of Order FulfillmentComplete deliveryComplete delivery

Partial deliveryPartial delivery

Order combinationOrder combination

Sales orderSales order

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery




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Collective Processing in DeliveryDelivery due listDelivery due listDelivery due listDelivery due list

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

Sales orderSales orderSales orderSales order





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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DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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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

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.

Sales orderSales order DeliveryDeliveryInvoiceInvoice

InvoiceInvoiceInvoice split

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery



Collective invoice InvoiceInvoice


DeliveryDelivery

DeliveryDeliveryInvoiceInvoice

InvoiceInvoice

Separate invoiceper delivery

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Collective Processing in Billing

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

Billing due listBilling due listBilling due listBilling due list

InvoiceInvoice

InvoiceInvoice

InvoiceInvoice

DeliveryDeliveryDeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

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III. Collections (Returns / Credit)

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DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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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 ProcessingReturn Order Processing

ReceiptReceipt

PaymentPayment

BillingBilling

CreditMemo

Damaged

Damaged

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When Do Credit and Debit Memos Occur?

Return Delivery Credit memoReturn order (authorization)

BillingDeliveryOrder

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How Are Returns Processed?

Returnsdelivery

Credit memoReturn request(authorization)

Accept returned Accept returned goods (Post goods (Post goods issue)goods issue)

Place in restricted Place in restricted stockstock

Credit memo Credit memo created after created after removing the removing the billing block.billing block.

Invoice

Invoice

SalesOrder

Billing blockBilling block

Order reason Order reason required to create required to create Return OrderReturn Order

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Credit and Debit Memos

Credit memo

Debit memo

Credit memo request

Debit memo request

Credit MemosCredit Memos

Debit MemosDebit Memos Billing blockBilling block

SalesOrder

Invoice

SalesOrder

Invoice

Invoice

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 ListCustomer Analysis-New Selection: Initial ListCustomer Analysis-New Selection: Initial List

Key figuresKey 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.

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 ListCustomer Analysis-New Selection: Initial ListCustomer 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.

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 downfor even more detail.

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Editing the ListCustomer Analysis-New Selection: Top Five CustomersCustomer Analysis-New Selection: Top Five Customers

You can further edit the list. This example shows:

The top five customers (View > Top N)

Other figures (Edit > Choose key figs)

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

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Sales & Distribution OverviewReview 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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Right Solution, Right Time, Right Price

This course was developed with the assistance of: