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Sales and DistributionSales and DistributionSAP R/3 Functional Level TrainingSAP R/3 Functional Level Training

Part IPart I

Nov. 2000

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InstructorInstructor

YOUR FACILITATOR FOR THIS COURSE IS:

Mr. Eric Chen

Consultant

XX Consulting

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Schedule & TopicSchedule & Topic

Process View & SAP R/3 Overview

SAP Sales & Distribution (SD) Module

Organization StructureBusiness Partners & Customer Master

Material Master

Part I

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Sales Process Overview

Sales Documents Structure and Functions

Sales Process - Pre-sales Activities

Sales Process - Sales Order Processing

Sales Process - Others

Part II

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Sales Process - Shipping

Sales Process - Billing

Pricing

Credit Management

Availability Check & Delivery Scheduling

Output & List

Sales Information System (SIS)

Sales and Operation Planning (SOP)

Part III

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To obtain an overview of the Sales&Distribution functionality and therelation with other SAP modules

To know the basic structure of the Sales&Distribution module

To know the basic components of Sales&Distribution:

Organizational StructureMaster Data

To understand the processing flow within Sales&Distribution:Pre-sales ActivitiesSalesOrder ProcessingShipping

Billing

Course GoalsCourse Goals

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Organization Structure

Business Partners & Customer Master

Material Master

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What is a Process?What is a Process?

A linked set of repetitive activities,

which refine an object to a specified

and measurable end result

InputEvent

5

Event

1

Event

2

Event

3

OutputEvent

4

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Line View vs. Process ViewLine View vs. Process View

11 2

3

4

5

6

7

1 Order Received

2 Order Registered

3 Order Approved

4 Order Produced

5 Distribution Prepared6 Invoice Created

7 Shipping

Customer

1 2 3 4 5

6

7

Customer

Line Org.

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Why Use a Process Oriented View?Why Use a Process Oriented View?

* Get the whole picture

* Customer focus

* Clarify interfaces/relations

* Avoid sub-optimisations

* Identify measurements

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Processes on Different LevelsProcesses on Different Levels

Processes

Processes

Activities

Time To

Customer

Level 2

Level 3

Order Seq.

& Assigned

Order Mgmt

Stock

Order Mgmt

Customer

Tactical

Planning

ESP +ESP+

Operational

Performance

Operational

Planning

Material

CapacityManagement

Generic

Assembly

Delivery

PackagingKitting

Assemble

ToOrder

MtrlSupply

Mgmt

Production

Planning

Cap.& Matr

ReqmntPlan.

Cap.& Matr

ReqmntPlan.

MtrlSupply

Mgmt

Expediting

& Shipping

Customer

Care

Customer

Level 1

Level 4

CoreProcess

ExternalSupply

Implemen-tation

Operational

Planning

Distribution

CapacityInvestment

Planning Production

Processes

Tactical

Planning

Order Management

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Purchase

Order

Check product

and customer

data

Orderentry

Customer

master

Maintain Customer

Master

Distribution

IM/WMA/R

Priority

Forum

Changed

production

plan report

External Supply, Inventory

Warehouse Management

Customer or

Sales, TTM

Valid

information

NO

YESOrder Scheduling,

Print of

acknowledgement

Customer and Production

Requestfor RMA

no.

Return ofmaterial

IssueRMA no.Evaluategoods

returned

Send backmaterial

CompensationDecide onaction to be

taken

The overall purpose ofthe OM process is to

receive, enter and

handle sales orders and

returns

The Order Management Business ProcessThe Order Management Business Process

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Purchase

Order

Check product

and customer

data

Order entry

Customer

master

Maintain Customer

Master

Distribution

IM/WMA/R

PriorityForum

Changed

production

plan report

External Supply, Inventory

Warehouse Management

Customer orSales, TTM

Valid

information

NO

YES

Order Scheduling,

Print of

acknowledgement

Customerand Production

Requestfor RMA

no.

Return ofmaterial

Issue RMA no.Evaluate

goodsreturned

Send backmaterial

CompensationDecide on

action to be

taken

R/3 supportedevents

How is OM Business Process Linked to SD Module?How is OM Business Process Linked to SD Module?

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How to implement SAP to enable your processesHow to implement SAP to enable your processes

SAP AG

SAP R/3 Procedure Model

Preparations for

Production

Productive

Operation

Organization and

Conceptual Design

Project Administration and Project Control

System Maintenance and Release Upgrade

Detailed Design

andImplementation

Target

Concept

Target

Concept

QualityQuality

checkcheck

Organize

Project

Organize

Project

Set Up Test

Environment

Set Up Test

Environment

Train Project

Team

Train Project

Team

Define

Functions and

Processes

Define

Functions and

Processes

Design

Interfaces andEnhancements

Design

Interfaces and

Enhancements

Establish

Global

Settings

Establish

Global

Settings

Establish

Company

Structure

Establish

CompanyStructure

Establish

Basic andMaster Data

Establish

Basic and

Master Data

Establish

Functions and

Processes

Establish

Functions and

Processes

Prepare

Production

Start

Prepare

ProductionStart

Create User

Documentation

Create User

Documentation

Set Up

Productive

Environment

Set Up

Productive

Environment

Establish

System

Administration

Establish

System

Administration

Train UsersTrain Users

Transfer Data

to Production

System

Transfer Data

to ProductionSystem

Optimize

System

Use

Optimize

System

Use

Support

Productive

Operation

Support

ProductiveOperation

QualityQuality

checkcheck

Appli-

cation

System

Appli-

cation

System

QualityQuality

checkcheck

Pro-

duction

System

Pro-

duction

System

Implement

Interfaces

and

Enhancements

Implement

Interfaces

and

Enhancements

EstablishReportingEstablishReporting

Establish

Authorization

Management

Establish

Authorization

Management

Establish

Archive

Management

Perform Final

Test

Perform Final

Test

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application softwareapplication softwareplusplus

infrastructureinfrastructure

based onbased onclient/server softwareclient/server softwaretechnologytechnology

R/3R/3

Client / ServerClient / Server

ABAP/4ABAP/4

SDSDMMMM

PPPP

QAQAPMPM

HRHR ISISOCOC

PSPS

AMAMCOCO

FIFISales &Sales &DistributionDistribution

MaterialsMaterialsMgmt.Mgmt.

ProductionProductionPlanningPlanning

QualityQualityAssuranceAssurance

Plant Main-Plant Main-tenancetenance

HumanHumanResourcesResources

IndustryIndustrySolutionsSolutions

Office &Office &Communi-Communi-

cationcation

ProjectProjectSystemSystem

Fixed AssetsFixed AssetsMgmt.Mgmt.

ControllingControlling

FinancialFinancialAccountingAccounting

What is SAP R/3What is SAP R/3

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R/3R/3Client / ServerClient / Server

ABAP/4ABAP/4

SDSD

MMMM

PPPP

QAQA

PMPM

HRHR ISIS

OCOCPSPS

AMAM

COCO

FIFISales &Sales &DistributionDistribution


ProductionProductionPlanningPlanning


Plant Main-Plant Main-tenancetenance

HumanHumanResourcesResources


Office &Office &Communi-Communi-

cationcation

ProjectProjectSystemSystem

Fixed AssetsFixed AssetsMgmt.Mgmt.

ControllingControlling


SAP R/3 ComponentsSAP R/3 Components

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PlantPlant

MaintenanceMaintenance

ProjectProject

ManagementManagement

CostCostAccountingAccounting


SalesSales&&

DistributionDistribution

HumanHumanResourcesResourcesPlanningPlanning

FixedFixed

AssetsAssets


MaterialsMaterials

ManagementManagement

ProductionProductionPlaningPlaning

& Control& Control

IntegrationIntegration

Integration is the Heart of the SAP system

EnterpriseEnterprise--Wide SolutionsWide Solutions

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the middleware whichthe middleware whichenables R/3 applications toenables R/3 applications torunrun

with high performancewith high performance

on a varity of platformson a varity of platforms

according to individualaccording to individualcustomer requirementscustomer requirements

R/3 Applications

R/3 Basis System

SystemPlatforms

What is the R/3 Basis SystemWhat is the R/3 Basis System

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SAP ApplicationsSAP ApplicationsLogistics / Accounting / Human Ressources Management

System SoftwareSystem Software

Application Modules

System Interfaces

Flow Control

Programming Interfaces

Data Dictionary

Dynpro Processor ABAP/4 Processor

UserInterface

Commu-nicationsInterface

R/3 Software ArchitectureR/3 Software Architecture

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Client Server StructureClient Server Structure -- Three LevelsThree Levels

Data Base ChangesData Base Changes

CentralDBCentral DB

User InteractionUser Interaction

Output Data toOutput Data toUserUser

Input DataInput DataFrom UserFrom User

(Stores all Data(Stores all Data

and AppliationAnd Application

Programs)Programs)

Application LogicApplication Logic

Output Data toOutput Data toUserUser

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Presentation Application Database

RelationalRelationaldatabasedatabase

systemsystemSAPSAP

backgroundbackgroundapplicationapplication

logiclogic

SAP updateSAP updateprogramprogram

SAP dialogSAP dialogapplicationapplication

logiclogic

Window ManagerWindow Manager

SAP presentationSAP presentationsoftwaresoftware

Graphical user interface data

Messages

Read access to the R/3 database

Object-oriented change order (asynchronousprocessing)

Write access to the R/3 dataabse

R/3 Application Logic ProcessingR/3 Application Logic Processing

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Configuration - Establishing tables and settingsthrough menu-driven paths in order to set up thesystem to meet your business requirements

Customization - Creating new reports and utilizinguser exits to add functionality to the system.

Modification - Changing the base system by alteringthe ABAP programs to change the way SAPfunctions

SAP CREED: YOU SHALL NOT MODIFY SAP.

Configuration vs. Customizations vs. ModificationsConfiguration vs. Customizations vs. Modifications

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Consignment

Client

Company Group

Company Code

Plant

StorageLocation

WH

Logistics (MM) ViewLogistics (MM) View

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DIV1 DIV2

Client

Sales Organization

Division

Distribution Channel

SALES

AREA

Logistics (SD) ViewLogistics (SD) View

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Client

Company Code

Business Area

Chart of Accounts

Financial Accounting (FI) ViewFinancial Accounting (FI) View

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Client

Controlling Area

Cost Center

Nodes

Cost

Centers

Controlling (CO) Cost Center Accounting ViewControlling (CO) Cost Center Accounting View

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Main ScreenMain Screen

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Material Master

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R/3 Overview FunctionalitiesR/3 Overview Functionalities

Modular Building Blocks:FI-Financial AccountingCO-Controlling

TR-Treasury

SD-Sales and Distribution

MM-

MaterialsManagement

PP-Production Planning

EC-Enterprise Controlling

IM-Inventory Management

QM-Quality Management

PM-Plant Maintenance

PS-Project System

WF-WorkflowIS-Industry Solutions

PA-Personel administrtaion

PD-Personel Development

R/3R/3


ABAP/4ABAP/4

ISIS


MMMMMaterialsMaterials

Mgmt.Mgmt.

PDPD

PersonelPersonelDevelopmentDevelopment

SDSDSales &Sales &


PPPPProductionProductionPlanningPlanning

QMQMQualityQuality

ManageManage--mentment

PMPMPlant MainPlant Main--tenancetenance

FIFIFinancialFinancial

AccountingAccounting

COCOControllingControlling

TRTRTreasuryTreasury

PSPSProjectProjectSystemSystem

WFWFWorkflowWorkflow

ECECEnterpriseEnterpriseControllingControlling

IMIMInvestmentInvestmentManagementManagement

PAPAPersonnelPersonnel

AdministrationAdministration

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Logistics:

Sales and Distribution

Materials Management

Production Planning

Quality Management

Plant Maintenence

Basic Functionalities of SAP R/3

SD

Sales&Distribution

Functional TrainingFunctional Training -- Sales and DistributionSales and Distribution

R/3R/3


ABAP/4ABAP/4

ISISIndustryIndustry

SolutionsSolutions

MMMM


PDPDPersonelPersonel

DevelopmentDevelopment

SDSDSales &Sales &



QMQMQualityQuality








WFWF

WorkflowWorkflow





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Sales & Distribution (SD module):

Sales Order Processing (SD-SLS)

Shipping (SD-SHP)

Billing (SD-BIL)

Sales Support (SD-CAS)

Sales Information System (SD-IS)

Service Management (SM)

Basic Functionalities of SAP R/3

Functional TrainingFunctional Training -- Sales and DistributionSales and Distribution

SD

Sales&Distribution

R/3R/3


ABAP/4ABAP/4

ISISIndustryIndustry

SolutionsSolutions

MMMM


PDPDPersonelPersonel

DevelopmentDevelopment

SDSDSales &Sales &



QMQMQualityQuality








WFWF

WorkflowWorkflow





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Material Master

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Company

Plant

Storage location

Client

Bin location

SAPHierarchy: Primary structureSAPHierarchy: Primary structure

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Company

Plant

Storage location

Client

Bin location

DistributionChannel

Sales

organisation

SAPHierarchy: Secondary StructureSAPHierarchy: Secondary Structure

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Flexible way of representing the companysorganisational structure in R/3

Makes it possible to distinguish valid relationshipsbetween units

Structures data: common data where possible

different data where necessary

Used for authorization

Purpose of SAPHierarchyPurpose of SAPHierarchy

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Structure of SAPHierarchyStructure of SAPHierarchy

Common entities Used in most functional areas

e.g. Company

Specific entities

Used in one functional area

e.g.: - Sales organisation (SD)- MRP controller (PP, MM)- Cost control area (CO)

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CLIENT

area 1 area 2

area 3 area 4

Company code 1

Area 1

Area 2

Company code 2

ClientClient

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Company CodeCompany Code

Definition

This is the first level of organizational design in SAP. A large amount ofprocesing, data, and configuration is specific to the SAP companycodes. The Company Codes typically represent the legal financialreporting units of a company.

0001 0002 0003

Client

CompanyCode

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Sales OrganizationSales Organization

Definition

This is the highest level of the initial SD organizational hierarchy.Normally it is used to represent a legal selling unit. Sales organizationsare tied directly to company codes.

1000 2000 3000

0001

4000

0002 0003

Client

SalesOrganisation

CompanyCode

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Distribution ChannelDistribution Channel

Definition

This is the middle level of the initial SD organizational hierarchy.Normally it is used to represent a unit that determines how salesmaterials reach the customer. Sales specific material master data such asprices, minimum order quantity, minimum delivery quantity, anddelivering plant can differ by distributon channel.

1000

10

Wholesal

e

20

Retail

30

Direct Sales

XYZCompanyRetailOutlets

DistributionChannels

SalesOrganisation

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DivisionDivision

Definition

This is the third and final level of the initial SD hierarchy. Normally thisis used to represent a grouping of products, for which an organisationalunit is profit responsible.

Sales

Organisation

Gasoline Lubricant

Divisions

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Sales AreaSales Area

Definition

This is the combination of three levels in the SD organizational hierarchy mentioned before (sales org., distribution channel, anddivision). One sales area exists for each unique combination. For example, if an SD hierarchy includes three sales organizations,four distribution channels, and two divisions, twenty -four sales areas would be created (3x4x2=24). Each SD document processedin SAP (e.g. order, invoice) must have only one sales area tied to it.

Company Code

SalesOrganisation

DistributionChannel

DivisionSales Area 1

sales office

sales group

01 02

10

01 02

20

1000 2000 3000

0001

4000

0002 0003

Client

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SalesOffice 1 SalesOffice 2

Alex Wholesale

Alex Wholesale

Retail Shop1

Retail Shop 2

Watson & Co.

David & Don

Sales OfficeSales Office

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Client

Plant A

Plant B

Company : ABC Company : XYZ

Plant C

PlantsPlants

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Plant B

Plant A

Plant A

Plant B

SalesOrganisation

A

Sales

OrganizationB

SalesOrganisation

C

COMPANY ABC COMPANY XYZ

Plant Assignment to Sales OrganisationPlant Assignment to Sales Organisation

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Plant A Plant B

Shipping Point 1Shipping Point 3

s

hip

point

2

Shipping OrganisationShipping Organisation

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SAP Structure in SD I: Sales AreasSAP Structure in SD I: Sales Areas

Client

1000 2000 3000

10 20 10 10

01 02 01 02 01 02 01

Sales organization

Distributionchannel

Division

= Sales area

companycode

assignment

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SAP Structure in SD II: Sales UnitSAP Structure in SD II: Sales Unit

Client

Boston New York

001 002 004

Miller White Carter Smith

Sales office

Sales group

Sales-person

003 005

DouglasBrown Fisher

assignment

sales area

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SAP Structure in SD III: Shipping OrganisationSAP Structure in SD III: Shipping Organisation

Client

Mail depotForwarding

depotRail depot

Ramp 1 Ramp 2 Ramp 3

Shippingpoints

Loadingpoints

assignment

plant

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Material Master

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Business PartnersBusiness Partners

Sold-to party (C)

Bill-to party (C)

Personnel (P)

..... Ship-to party (C)

Carrier (V) Payer (C)

partner

functions

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Customer MasterCustomer Master

CustomerCustomermastermaster

CustomerCustomermastermaster

Ship-to party

PayerBill-to party

Sold-to party

Place an order Receive the goods

Settle the billReceive the invoice forthe goods

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Customer MasterCustomer Master -- Account GroupsAccount Groups

Create sold-to party

Customer C1

Sales organization : 0001

Distribution channel : 01

Division : 01

Account group : 00010001

0001 Sold-to party

0002 Ship-to party0003 Payer

0004 Bill-to party

Field selection

Number assignment

Output proposal

ACCOUNT GROUP 0001

One-time account: Yes/No

:

ACCOUNT GROUP

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Customer Master from Sales ViewpointCustomer Master from Sales Viewpoint

Customer : 100

Sales organization : 1017

Distribution channel : 01Division : 22

General data

valid for both

accounting and sales

dependent on:- sales organisation

- distribution channel

- division

Address

Control dataContact person

Sales area data

SalesShipping

Billing

Output

Partner functions

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Other Master DataOther Master Data

SAP AG

How Master Data is Integrated in SD Processing

Sales supportSales support

SalesSales

VersandVersand

DATA

WAREHOUSE

DATA

WAREHOUSE

MM

PP

PM

CO

FI

PS

Materials Mgmt.

Production Planning

Plant Maintenance

Controlling

Financial Accounting

Project System

MM

FI

Materials Mgmt.


CO


Controlling

FI

FakturierungFakturierung

Master DataCustomers

Materials

Bills of material

Customer-Material Information

Product proposals

Conditions

Master DataCustomers

Materials

Bills of material

Customer-Material Information

Product proposals

Conditions

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2743 2744

4711

Central

MillerMiller

Customer Customer

Unique

node number

Customer

4712

South

MillerMiller

4713

North

MillerMiller

4714

Northwest

MillerMiller

4715

Northeast

MillerMiller

CustomerHierarchiesCustomerHierarchies

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Origins of Data in Sales DocumentsOrigins of Data in Sales Documents

Customer master data Sales order

Material master data

.....

Control tables

Texts

Conditions

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Exercise 1: Create Customer MasterExercise 1: Create Customer Master

Now let us do an exercise.Please use the ExerciseBook as reference.

Then pleasetake a rest.

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Material Master

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Material Master DataMaterial Master Data

Master Data

Customer Master Data

Material Master Data

Definition

The material master record is a central data object in

the SAP System. It is used to store data on rawmaterials, operating supply items, semi-finished

products, finished products, productionresources/tools .....

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Material Master ViewsMaterial Master Views

Material

master record

Requirements

planning (MRP)

St

t

Purchasing

Sales and

distribution

Job

preparation

Storage

Quality

management

Stocks in

plant-warehouse

A

B

Warehouse

managementClassification

Forecast

Accounting

Engineering

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Material TypesMaterial Types

Materials are assigned to a materialgroup through the material type.The material type defines certainfeatures of the material and is usedfor the control of:material number assignment screen selection screen sequence control sourcing (in- & external)mat. valuation

Choose from:

Raw material

Finished product

Trading goods

Non-valuated material

Non-stock material

Packaging

Services

Operating supplies

Semi-finished material

Configurable material

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General data

Sales data Plant data

Storage data

Structure of Material Master RecordStructure of Material Master Record

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Material Master Data (Sales Info)Material Master Data (Sales Info)

General data

Material numberDescriptionUnits of measureWeightVolumeDivision

Data specificto plant

MRP profileManufacturing costsTransportation groupLoading group

Date specificto storage location

Stocks

Data specificto sales

Delivering plant

Sales groupSales textProduct hierarchy

l

dependent uponsales organization

and distribution channel

Client

Sales organization

Distribution channel

1000

10

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Grouping MaterialsGrouping Materials

Materials can be grouped according to different criteria.This allows for easier management and better evaluationof materials with simular features. The standard versionof the SAP R/3 system does not provide exact criteria todiferentiate between individual groupings. These criteria

can be defined by the company to meet their specificdemands.

In the standard version of the SAP R/3 system thefolowing groupings are possible:

material group

material pricing group product hierarchy

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Material GroupMaterial Group

Goods with the same features (for example, nails) can be

grouped using the field Material group. Unlike the

product hierarchy, the material group does not contain

different levels or possible combinations of goods. You

can, however, use the material group to carry out

different analysis functions. The material group is

defined by a nine-digit, alphanumeric key. It is not

primarily of importance for sales and distribution, but is

used mainly in materials management.

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Material Pricing GroupMaterial Pricing Group

The material pricing group can also be used togroup materials, especially for pricing and foranalyses. The material pricing group is definedby a two-digit, numeric key.

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ProductHierarchyProductHierarchy

The product hierarchy is used to groupmaterials by combining different features. It isused for analyses and pricing. A producthierarchy can consist of up to eighteencharacters. Its features can be combined invarious ways. The following figure gives anexample of how materials can be grouped usingproduct hierarchies.

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ProductHierarchyProductHierarchy

Electronicappliances

00001Spare parts

Dryappliancies

00001

...

000000001 000000002

Position 1 -5

Position 6-10

Position 11-18

... ...

....... ...

Wetappliancies

00002

000000003 000000004

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Exercise 2: Create Sales View for Material MasterExercise 2: Create Sales View for Material Master

Now let us do an exercise.Please use the ExerciseBook as reference.

Then pleasetake a rest.

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End of Part IEnd of Part I

Question & Answer