Sales & Distribution(SD) :January 2007 (v1.0) The Rushmore Group, LLC 1 Sales & Distribution(SD) BPI - Overview


SD: Functionality :January 2007 (v1.0) The Rushmore Group, LLC 2 SD: Functionality Sales Support Sales Shipping and Transportation Billing Credit Management Foreign Trade


Sales & Distribution :January 2007 (v1.0) The Rushmore Group, LLC 3 Sales & Distribution Org Structure & Master Data


SD: Organizational Structures :January 2007 (v1.0) The Rushmore Group, LLC 4 S&D Structure Client Company Code Sales Area Sales Organization Distribution Channel Division Plant Shipping Point Loading Point Internal Sales Structure Sales Offices Sales Groups Salesperson SD: Organizational Structures


SD: Structure for Sales Order Processing :January 2007 (v1.0) The Rushmore Group, LLC 5 SD: Structure for Sales Order Processing


SD: Internal Sales Structure :January 2007 (v1.0) The Rushmore Group, LLC 6 SD: Internal Sales Structure


SD: Structure for Distribution :January 2007 (v1.0) The Rushmore Group, LLC 7 SD: Structure for Distribution


SD: Master Data :January 2007 (v1.0) The Rushmore Group, LLC 8 SD: Master Data Customer Master Data Material Master Data Cust/Mat Info Record Output Master Data Condition Master Data


SD: Customer Master Data :January 2007 (v1.0) The Rushmore Group, LLC 9 SD: Customer Master Data Customer Master Contains all of the information necessary for processing orders, deliveries, invoices and customer payment Every customer MUST have a master record Customer Master Data is created by Sales Area Sales Organization Distribution Channel Division


SD: Customer Master Data :January 2007 (v1.0) The Rushmore Group, LLC 10 SD: Customer Master Data The customer master information is divided into 3 areas: General Data Company Code Data Sales Area Data


SD: Customer Master :January 2007 (v1.0) The Rushmore Group, LLC 11 SD: Customer Master


SD: Master Data :January 2007 (v1.0) The Rushmore Group, LLC 12 SD: Master Data Material Master Contains all the information a company needs to manage about a material It is used by most components within the SAP system Sales and Distribution Materials Management Production Plant Maintenance Accounting/Controlling Quality Management Material master data is stored in functional segments called Views


SD: Material Master Views :January 2007 (v1.0) The Rushmore Group, LLC 13 SD: Material Master Views


SD: Material Master :January 2007 (v1.0) The Rushmore Group, LLC 14 SD: Material Master


SD: Customer-Material Information Record :January 2007 (v1.0) The Rushmore Group, LLC 15 SD: Customer-Material Information Record Data on a material defined for a specific customer is stored in a Customer material info record. Info Records contain: customer-specific material number customer-specific material description customer-specific data on deliveries and delivery tolerances You can also maintain default text to appear on sales orders for that customer


SD: Condition Master (Pricing) :January 2007 (v1.0) The Rushmore Group, LLC 16 SD: Condition Master (Pricing) Condition master data includes: Prices Surcharges Discounts Freights Taxes You can define the condition master to be dependent on various data: Material specific Customer specific Conditions can be dependent on any document field


SD: Output :January 2007 (v1.0) The Rushmore Group, LLC 17 SD: Output Output is information that is sent to the customer using various media, such as: E-mail Mail EDI Fax XML Output examples: Quotation Confirmation Invoice


Sales & DistributionSales :January 2007 (v1.0) The Rushmore Group, LLC 18 Sales & DistributionSales Sales Order Process


Sales: The Process :January 2007 (v1.0) The Rushmore Group, LLC 19 Sales: The Process


SD: Pre-Sales Activities (CRM Light) :January 2007 (v1.0) The Rushmore Group, LLC 20 SD: Pre-Sales Activities (CRM Light) Sales Support is a component of SD that assists in the sales, distribution, and marketing of a companies products and services to its customers. It contains the following functionality: Creating and tracking customer contacts and communications (sales activity) Phone call records On-site meeting Letters Campaign communication Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes Pre-sales documents need to be managed within the presales activities: Inquiries and Quotations. These documents help identify possible sales related activity and determine sales probability.


SD: Pre-Sales Activities (CRM Light) :January 2007 (v1.0) The Rushmore Group, LLC 21 SD: Pre-Sales Activities (CRM Light) The ultimate goal of all pre-sales activities is to equip the sales technician with all the information necessary to negotiate and complete the potential sale. Information needed: Past sales activity Past communication Contact information General Company info Credit limits and usage Current backorders 360º view of your customer


SD Process: Inquiry :January 2007 (v1.0) The Rushmore Group, LLC 22 SD Process: Inquiry An inquiry is a customer’s request to a company for information or quotation in respect to their products or services without obligation to purchase. How much will it cost Material/Service availability May contain specific quantities and dates The inquiry is maintained in the system and a quotation is created to address questions for the potential customer.


SD Process: Quotation :January 2007 (v1.0) The Rushmore Group, LLC 23 SD Process: Quotation The quotation presents the customer with a legally binding offer to deliver specific products or a selection of a certain amount of products in a specified timeframe at a pre-defined price.


SD Process: Sales Order :January 2007 (v1.0) The Rushmore Group, LLC 24 SD Process: Sales Order Sales order processing can originate from a variety of documents and activities Customer contacts us for order: phone, internet, email Existing Contract Quotations The electronic document that is created should contain the following basic information: Customer Information Material/service and quantity Pricing (conditions) Specific delivery dates and quantities Shipping information Billing Information


SD Process: Sales Order :January 2007 (v1.0) The Rushmore Group, LLC 25 SD Process: Sales Order The sales document is made up of three primary areas: Header Data relevant for the entire sales order: Ex: customer data, total cost of the order Line Item Information about the specific product: Ex: material and quantity, cost of an individual line Schedule Lines Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries


SD Process: Sales Order :January 2007 (v1.0) The Rushmore Group, LLC 26 SD Process: Sales Order The sales order contains all of the information needed to process your customers request, the following information is determined for each sales order: Delivering Schedule Shipping point and route determination Availability Check Transfer of requirements to MRP Pricing Credit limit check


Sales Order: Delivery Scheduling :January 2007 (v1.0) The Rushmore Group, LLC 27 Sales Order: Delivery Scheduling When an order is created the you must enter a requested delivery date for the order or each line item. The system will then determine a delivery timeline, this will be used when determining our material availability, or ATP (Availablity to Promise) date. The system will determine this date using forward and backward scheduling rules you have defined.


Sales Order: Backward Scheduling :January 2007 (v1.0) The Rushmore Group, LLC 28 Sales Order: Backward Scheduling Requested Delv. Date Goods Issue Loading Material Availability Order Date Transp. Sched. Transit Time (2 days) Loading Time (1 day) Pick & Pack Time (2 days) Transp. Sched. Time (1 day) 2nd 3rd 4th 5th 6th 1st


Sales Order: Forward Scheduling :January 2007 (v1.0) The Rushmore Group, LLC 29 Sales Order: Forward Scheduling Transit Time (2 days) Loading Time (1 day) Transp. Sched. Time (1 day) New Delv. Date 1st 3rd 4th 5th 6th 2nd Pick & Pack Time (2 days) 7th Requested Delv. Date Goods Issue Loading Material Availability Order Date Transp. Sched.


Sales Order: Shipping & Route Determination :January 2007 (v1.0) The Rushmore Group, LLC 30 Sales Order: Shipping & Route Determination During the creation of the sales order the system must determine the shipping point from which the material will be shipped and the route the material will take to get from your warehouse to your customers location. A shipping point is determined for each line item within the order. The route determination will is used to define the transit time of the material that we used in scheduling.


Sales Order: Availability Check :January 2007 (v1.0) The Rushmore Group, LLC 31 Sales Order: Availability Check Availability Check Determines the material availability date Considers all inward and outward inventory movements Proposes 3 methods of delivery One-time delivery Complete delivery Delayed proposal Rules are created by YOU


Sales Order: Transfer to Planning :January 2007 (v1.0) The Rushmore Group, LLC 32 Sales Order: Transfer to Planning The order is transferred to Material Requirements Planning as an (CIR) Customer Independent Requirement. If a deficit is found the system will propose a Purchase Req. or Order to fulfill the shortage.


Sales Order: Pricing :January 2007 (v1.0) The Rushmore Group, LLC 33 Sales Order: Pricing The system displays pricing information for all sales documents on the pricing screens at both the header and the line item level. Header pricing is valid for the whole order it is the cumulitive of all line items within the order Line item pricing is for each specific material. The system will automatically search for price, discounts, surcharges, calculate taxes and freight. You have the ability to manually manipulate the pricing at both the header and line item level within the sales order by entering a condition type and amount. Taxes and freight can be set-up so we can’t manually enter.


Sales Order: Credit Check :January 2007 (v1.0) The Rushmore Group, LLC 34 Sales Order: Credit Check Allows your company to manage its credit exposure and risk for each customer by specifying credit limits. During the sales order process the system will alert the sales rep about the customers credit situation that arises, if necessary the system can be configured to block orders and deliveries.


SD Process: Shipping & Transportation :January 2007 (v1.0) The Rushmore Group, LLC 35 SD Process: Shipping & Transportation The shipping process begins when you create the delivery document for the sales order. This document controls, supports, and monitors numerous sub-processes for shipping processing: Picking Packing Post Goods Issue Integrated with the Material Management (MM) and Finance (FI) modules


SD Process: Shipping :January 2007 (v1.0) The Rushmore Group, LLC 36 SD Process: Shipping


SD Process: Delivery Creation :January 2007 (v1.0) The Rushmore Group, LLC 37 SD Process: Delivery Creation Checks order and materials to determine if a delivery is possible — delivery block (hold), completeness Confirms availability Confirms export/foreign trade requirements Determines total weight & volume


SD Process: Delivery Creation :January 2007 (v1.0) The Rushmore Group, LLC 38 SD Process: Delivery Creation Generates packing proposal Calculates weight and volume Checks scheduling Considers partial deliveries Updates route assignment Assigns picking location Determines batches Quality check (if needed) Updates sales order


SD Process: Delivery Document :January 2007 (v1.0) The Rushmore Group, LLC 39 SD Process: Delivery Document The Delivery Document initiates the delivery process and is the control mechanism for this process Picking Packing Loading Posting Goods Issue Changes to delivery are allowable - products, quantities


Delivery: Picking :January 2007 (v1.0) The Rushmore Group, LLC 40 Delivery: Picking Quantities based on delivery note Assigned date when picking should begin Automated storage location assignment Supports serial number/lot number tracking and batch management Integrated with Warehouse Management (WM)


Delivery: Loading and Packing :January 2007 (v1.0) The Rushmore Group, LLC 41 Delivery: Loading and Packing Identifies which packaging is to be used for specified products (customer preference and UCC-128 considerations) Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced All packed items are assigned to the required means of transportation


Delivery: Goods Issue :January 2007 (v1.0) The Rushmore Group, LLC 42 Delivery: Goods Issue Event that indicates the legal change in ownership of the products Reduces inventory and enters Cost of Goods Sold Automatically updates the General Ledger (G/L) accounts Ends the shipping process and updates the status of the shipping documents


SD Process: Billing :January 2007 (v1.0) The Rushmore Group, LLC 43 SD Process: Billing The billing document is created by coping data from the sales order and/or delivery document. Order-based billing Delivery-based billing The billing process is used to generate the customer invoice. It will update the customer’s credit status.


SD Process: Billing Documents :January 2007 (v1.0) The Rushmore Group, LLC 44 SD Process: Billing Documents The billing document will automatically create a debit posting to your customer sub-ledger account and credit your revenue account. It is at this point that the sales process is passed over to Financial Accounting to await payment.


SD Process: Billing Methods :January 2007 (v1.0) The Rushmore Group, LLC 45 SD Process: Billing Methods


SD Process: Payment :January 2007 (v1.0) The Rushmore Group, LLC 46 SD Process: Payment Payment is the final step in the sales order process, this step is managed by the Financial Accounting department. Final payment includes: Posting payments against invoices. Reconciling differences between payment and invoice. Payment will create a posting clearing the liability in the A/R account and decreasing your bank account.


SD Process: Document Flow :January 2007 (v1.0) The Rushmore Group, LLC 47 SD Process: Document Flow The document flow and order status feature allows you to find the status of an order at any point in time. The SAP updates the order status every time a change is made to any document created in the customer order management cycle (Order-to-Cash).