Sales and Distribution

Sales & Distribution:

Sales & Distribution

Contents:

Contents Objective Characteristics Processes

SD: Sales & Distribution :

SD: Sales & Distribution Overview SD module supports the sales process of an organization from inquiry generation to after sales service It also provides a platform to help the sales staff in their day to day activities as maintaining database of contact persons, sales prospects etc Credit Management is a strong feature of SAP SD

SD: Sales & Distribution :

SD: Sales & Distribution Characteristics Sales Organization An organizational element representing a legal selling unit, e.g. Northern region sales. Entire sales cycle must take place under one sales organization Distribution channel An organizational element representing a method of distribution, e.g. Direct sales vs. wholesale sales Division A way of grouping the products for various sales activities such as pricing procedure, customer specific agreements etc Sales Area A grouping of sales organization, distribution channel and division for various reporting purposes

Organisation Structure:

Organisation Structure Organisational elements are structures that represent the legal and/or organisational views of an enterprise and form a framework that supports all business activities. Defining your organisation structure in SAP is an important step and requires thorough analysis of how your organisation wants to do business In the SD Module the organisation structure could be : The market oriented structure The internal organisation structure The shipping related organisation structure

Organisation Structure:

Organisation Structure The market oriented structure comprises Sales organisation Distribution Channel Division Sales Area

Organisation Structure:

Organisation Structure Sales Organisation Is responsible for distributing goods and services Is responsible for negotiating sales conditions Carries out each business transaction Every sales organization stands for a selling unit in the legal sense, being responsible, for example, for product liability and other recourse claims made by customers. Regional subdividing of the market can also be carried out with the help of sales organizations Is represented in the SAP by a four digit code

Organisation Structure:

Organisation Structure Distribution Channel Are the means through which the sales materials reach the customer Include - Retail trade, Wholesale trade, Direct Sales etc. Is represented in SAP by a two digit code

Organisation Structure:

Organisation Structure Division Is used to segment a business into product lines Allows you to make customer-specific agreements like Partial deliveries, pricing agreements, special payment terms etc. Is represented in SAP by a two digit code

Organisation Structure:

Organisation Structure Sales Area Is a combination of sales organisation, distribution channel and division. Most of the SD transactions and analysis is done for a sales area.

Market Oriented Organizational Structure :

Market Oriented Organizational Structure Sales Area Sales organization Distribution channel Division Wholesale Retail Direct sales

Organisation Structure:

Organisation Structure Internal Organisation Structure comprises Sales Office Sales Group Sales Personnel

Organisation Structure:

Organisation Structure Sales Office Represents geographical aspects of the organization in business development and sales A Sales Office is assigned to a sales area Is represented by a four digit code in SAP

Organisation Structure:

Organisation Structure Sales Group The staff of the sales office can be divided into various sales groups which could represent the various selling divisions Is represented by a three digit code in SAP

Organisation Structure:

Organisation Structure Sales Personnel Individual sales persons can be assigned to sales groups to represent the full hierarchy

Internal Structure :

Internal Structure Sales Office Sales group Sales personnel

Organizational Structure in Materials Management:

Organizational Structure in Materials Management Client 0001 Plants 0002 0003 Storage locations 0001 0001 0002 SD040/1-5

Assignment of Sales Organization and Plant:

Assignment of Sales Organization and Plant Client Company code 1 Company code 2 Sales organization 1 Sales organization 2 Sales organization 3 Plant 1 Plant 2 Plant 3 Plant 4 SD060/2-10

Relationship Between SD and Materials Management:

Relationship Between SD and Materials Management 001 0001 0002 0003 0001 0002 Client Company Codes Sales Organization Plants 0001 0003 0002 0004

Shipping Structure :

Shipping Structure Shipping depot Rail depot Road depot Air depot Mail depot Shipping point Loading point Ramp 1 Ramp 2 Ramp 3

Organisation Structure:

Organisation Structure Shipping Points Is a fixed location responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to your own warehouses. A delivery is always carried out by one shipping point only. The shipping point depends on the - Delivering plant,Type of shipping (for example, train, truck) ,Loading equipment necessary Is represented by a four digit code in SAP

Organisation Structure:

Organisation Structure Loading Points Shipping points can further be subdivided into loading points

Organisation Structure:

Organisation Structure Business area is an organisational unit within accounting that represents a separate area of operations or responsibilities are assigned based on Plant - divisions or Sales areas

Organisation Structure:

Organisation Structure

Organisation Structure:

Organisation Structure Integration of Sales structure with materials Integration of the plant with the Sales Organisation and the Distribution channel with the Shipping Point

Organisation Structure:

Organisation Structure Plant produces goods, renders services, or makes goods available for distribution can be a manufacturing facility or a warehouse distribution center. SO DC Plant Shipping Point Plant

SD: Sales & Distribution :

SD: Sales & Distribution Characteristics (Contd) Material master Stores master data of the products Customer Master data Customer Material Information stores data of products specific to a customer Prices – Base Price, Discount, Tax etc Agreements Contain data on contracts and delivery schedules etc. with the customers

Master Data:

Master Data Master Data forms the basis for most of the transactions. It contains records that remain in the database over an extended period of time It is centrally stored (shared across application modules) and processed to eliminate data redundancy

Master Data :

Master Data Business Partners Materials Other Master Data

Business Partners :

Business Partners Business partner = Customer Functions: Payer Bill-to-party Sold-to-party Ship-to-party One customer = One master record General Data Sales-specific data Sales Shipping Billing Banking Payment terms Insurance Address Company code data

Material Master Data :

Material Master Data Data about the material is stored together for all departments, but the master record can be maintained either centrally or by each application area : General Data Material number, Description, Units of measure, Weight, Volume Sales area specific Delivering plant Shipping data Sales texts Plant specific MRP profile Procurement Export data Storage Loc. specific Temp.conditions Store conditions Accounting specific Valuation data

Other Master Data :

Customer-material information records Material determination and material substitution Material Listing and Material Exclusion Conditions Other Master Data Materials Red acrylic paint Black acrylic paint

Origins of Data in Sales Documents:

Origins of Data in Sales Documents When you create sales order the system proposes most of the data from master records. This in case of sales order could come from Customer Master Data, Material Master Data. It is recommended to store as much of data as possible to save great deal of time & effort.

Partner Functions:

Partner Functions Sold-to-Party Payer Ship-to-Party Carrier Vendor Employee Resp. Partner Function A company deals with different persons during business transactions. A customer orders goods from a company. A forwarding agent might deliver goods to the customer. An employee within the company processes the business transactions. All roles a natural or legal person can assume are represented by business partners in the SAP R/3 System.

Business Partners:

Business Partners You can maintain partners/customers (such as sold-to-parties, ship-to-parties, payers, bill-to-parties) in the customer master and in sales & distribution documents. Each partner is identified by a partner function. Data on Vendors maintained in the vendor master. E.g. of Partner functions are Sold-to-Party (AG), Bill-to-Party (RE), Payer (RG), Ship-to-Party (WE), Contact Person, Employee Responsible, Forwarding Agent.

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CUSTOMER MASTER INITIAL SCREEN XD01=

Customer Masters:

Customer Masters It includes all data necessary for processing orders, deliveries, invoices, and customer payments. Customer master information is shared between accounting and sales department (e.g. customer number) The Customer master groups data into categories:general data, company code data and sales & distribution data. General Data could be Customer number. Company code Data relevant for accounting(e.g. Reconciliation account) Sales Data relevant specific for sales (e.g. shipping information)

SD: Sales & Distribution :

SD: Sales & Distribution Processes Sales Support Supports the sales staff in their regular sales activities by maintaining sales related information such as possible sales prospects, contact persons, address etc Sales Supports the sales order processing cycle including inquiry generation, quotation processing, order placement, pricing and availability check Shipping Supports the delivery cycle from delivery order generation through picking, packing to transportation Billing Manages the billing document preparation Credit Management Monitors the credit level of customers at various sales activities to decide on progressing with the sales activities

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Sales and Distribution Cycle Overview Inquiry Quotation Customer Invoice Customer Payment Call off Contract Sales Order Delivery Consignment Order Standard Order Based on Inquiry Based on Quotation Without Reference Sales Activities Shipment

Inquiries and Quotations:

Inquiries and Quotations Inquiries Quotations Quotation (written) Sales Information (verbal) Attributes Information about: specific material or prices or text item (description) Binding document about: specific material or prices or text item (description) Commitment to sell goods in a certain period under certain conditions

Sales Documents :

Contract Scheduling Agreement Sales Documents Sales Order Cash Sale Rush Order Inquiry Quotation Sales Information Returns Credit memo request Debit memo request Return delivery Delivery free of charge Subsequent delivery free of charge Sales Queries Sales Outline Agreements Complaints

SALES:

SALES Sales-related business transactions are recorded in the system as sales documents. There are, broadly speaking, four different groupings of sales documents: Sales queries, such as inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements Customer problems and complaints, such as free of charge deliveries and credit memo requests If your particular business processes require it, one can process deliveries and billing documents directly from a sales document.

STRUCTURING OF SALES DOCUMENTS:

STRUCTURING OF SALES DOCUMENTS A Sales document can contain any number of items Schedule lines are sub-divisions as required for each item with respect to date & quantity. Business Data valid for the whole sales document is located in the document header Each item has its own business data e.g. Incoterms etc. Data for shipping and procurement is stored in schedule lines.

Sales Orders:

Sales Orders Customer I approved the quotation and would like to place an order ... Sales Department Copy with reference

Basic Functions During Sales Order Processing:

Basic Functions During Sales Order Processing Monitoring the sales transaction Checking for availability Transferring requirements to materials planning Scheduling the delivery Calculating pricing and taxes Checking credit limits Creating printed or electronically transmitted documents

Outputs:

Outputs Outputs could exist for the whole document (Header Output) or only for some items in the document (Item Output) Examples of Outputs Inquiry Confirmation Quotation Order Confirmation Delivery Note Picking list Invoice For outputs to be generated the user can specify The partner to receive the output language in which the output is to be sent Quantity of the output to be sent

Outputs:

Outputs Is the result of a sales transaction Assists the exchange of information between business partners and employees Can be determined for each kind of sales document The output can be sent automatically whenever a document is created or the user can initiate the action A repeat output or changed output can also be sent The format of the output can be defined in SD Customising and a different output could be sent to different partners The Medium by which the output is to be sent Online/Printer/Telex/Mail/EDI The time at which the output is to be sent Immediately (on creation of the document) On request At a specified time

Shipping:

Shipping Picking Delivery and Goods Issue Packing and Loading Delivery Due List (Deadline Monitoring) Availability Check Routing Creating and Processing of Deliveries

Billing:

Billing Customer Selling Company YOU received our goods - We WANT our MONEY...

Slide 50:

Billing Billing is the final activity in Sales and Distribution.

Slide 51:

It supports the following functions: Issuing of: invoices on the basis of goods and services credit and debit memos based on corresponding requests pro forma invoices Cancellation of billing transactions Transfer of posting data to financial accounting (FI) In the SAP, the billing function is carried out using various billing documents. These billing documents cover demands of both general daily business and special cases. Billing

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All billing documents have the same structure. They consist of the document header and any number of items. The following figure shows the structure of billing documents. Billing Document Structure

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Document Header In the document header, you find general data valid for the entire document. This includes the following: Number of the payer Billing date Net value of the entire billing document Document currency Terms of payment and Incoterms Partner numbers, such as the number of the sold-to party Pricing elements at header level Billing Document Structure *

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In the document item , you find data valid for the individual item. This includes the following data: Material number Billing quantity Net value of the individual item Weight and volume Number of the reference document for the billing document (for example, number of the delivery on which the billing document is based) Pricing elements relevant for the individual item Numbers of the preceding and subsequent documents, including the item numbers from these documents relating to the individual item Billing Document Structure

Slide 55:

Control Elements Each billing document type can be set using control elements so that it has its own scope of functions. The billing document types can be adapted to meet your specific demands. If the billing document types defined in the standard version of the SAP R/3 system do not fulfill your company's requirements, new billing types can be defined. The following elements can be controlled by billing document type: From which number range should the document number be taken? Which partner functions are allowed at header level ? Billing Document Structure

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Control Elements Which partner functions are allowed at item level? Which billing type can be used to cancel the billing document? Should the billing document be transferred to financial accounting immediately ? blocked for transfer first? not transferred at all? According to which procedure should account assignment be carried out for financial accounting? Which output is allowed for the business transaction and according to which procedure is it proposed ? Billing Document Structure *

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Pricing at Billing

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Billing Methods

Slide 59:

You can create billing documents in the following ways: · processing the billing due list · explicitly specifying the documents to be billed You enter selection criteria. The system then selects all the documents fulfilling this criteria and enters them in a billing due list. · process billing as a background task You can also specify a billing schedule for a customer. In this case, the system selects the documents to be billed by the date defined in the billing schedule. Creation of Billing Document *

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Creation of Billing Document

Slide 61:

Credit and Debit Memos

Slide 62:

in export, you may need to print pro forma invoices. They are used to give the importer or the responsible authorities in the import country details about forthcoming shipments. Pro forma invoices can be created on the basis of sales orders or deliveries (see the following figure). Pro-forma Invoices

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Thank you