SAP University Alliances Version
2.20
Authors Bret Wagner Stefan Weidner
Sales and Distribution (SD)
Product SAP ERP 6.0 EhP4 Global Bike Inc. Inc
Level Beginner
Focus Cross-functional integration Sales and Distribution
© SAP AG
SAP ERP
Course Overview
Introduction to SAP Navigation Introduction to GBI Sales & Distribution Materials Management Production Planning Financial Accounting Controlling Human Capital Management Warehouse Management Project System Page 4-2
SAP ERP
Functionality
Sales Support Sales Shipping and Transportation Billing g Credit Management Foreign Trade
Page 4-3
SAP ERP
Unit Overview
SD Organizational Structure SD Master Data SD Processes - Order-to-Cash Process
Page 4-4
SAP ERP
Client -
An organizational entity which grants and monitors a credit limit for customers. It can include one or more company codes
Sales Organization -
Smallest org unit for which you can maintain a legal set of books
Credit Control Area -
An independent environment in the system
Company Code -
SD Organizational Structure
An organizational unit responsible for the sale of certain products or services. The responsibility of a sales organization may include legal liability for products and customer claims
Distribution Channel -
The way in which products or services reach the customer Typical examples of distribution channels are wholesale, retail, or direct sales
Page 4-5
SAP ERP
SD Organizational Structure
Division - A way of grouping materials, products, or services
Sales Area - Combination of Sales Organization, Distribution Channel and Division - Determines conditions (i (i.e. e pricing) for sales activities
Plant (here: Delivering Plant) - Plant from which the goods should be delivered to the customer
Other SD organization units: -
Shipping Point Loading Point Sales Office Sales Group Sales Person Page 4-6
SAP ERP
GBI Structure for Sales and Distribution
Client
Global Bike
Global Bike Inc.
US West
San Diego
Global Bike Germany GmbH
US East
Dallas
Miami
Germany North
Hamburg
Company Code
Germany South
Sales Organization g
Heidelberg
Sales Office
Page 4-7
SAP ERP
GBI Enterprise Structure in SAP ERP (Sales)
Di t ib ti Distribution Ch Channell Wh Wholesale l l WH
Distribution Channel Internet IN
US West
CA West
DE North
GB North
AU North
UW00
CW00
DN00
GN00
AN00
US East
CA East
DE South
GB South
AU South
UE00
CE00
DS00
GS00
AS00
CC GB00
CC AU00
CC US00
CC CA00
CC DE00
Sales S l Organization Company Code
Credit Control Area (global) GL00 Client GBI Page 4-8
SAP ERP
SD Master Data
Customer Master
M t i l Master Material M t
Sales Condition
Page 4-9
SAP ERP
Customer Master -
-
Customer Master Data
Contains all of the information necessary for f processing i orders, d deliveries, invoices and customer payment Every customer MUST have a master record
Created by Sales Area -
Sales Organization Distribution Channel Division
Page 4-10
SAP ERP
Customer Master Data
The customer master information is divided into 3 areas: -
General Data Company Code Data Sales Area Data
Page 4-11
SAP ERP
Customer Master
General Information relevant for the entire organization:
Client XXX
Company Code specific information:
Company Code US00
Acc. Mgmt Payment Bank
Company Code DE00
Name Address Communication
Sales Area specific information: Sales Office Currency
Sales Org. UW00
Sales Org. DS00
Page 4-12
SAP ERP
Material Master Data
Material Master -
-
Contains all the information a company needs d tto manage about b t 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
Page 4-13
SAP ERP
Material Master Views
Sales Data Basic Data
Purchasing Data Mat. Plan. Data Material Master
Forecasting Data Storage Data
Controlling Data
Quality Data Accounting Data
Page 4-14
SAP ERP
Material Master
General Ge e a Information o at o relevant e e a t for o tthe ee entire t eo organization: ga at o
Client XXX
Sales specific information:
Name Weight Unit of Measure
Storage Location specific information: Delivering Plant Loading Grp
Sales Org. UW00
Sales Org. UE00
Stock Qty
Storage Loc. FG00
Storage Loc. TG00
Page 4-15
SAP ERP
Condition master data includes: -
Prices Surcharges Discounts Freights Taxes
You can define the condition master to be dependent on various data: -
Condition Master Data (Pricing)
Material specific Customer specific
Conditions can be dependent on any document field
Page 4-16
SAP ERP
Output is information that is sent to the customer using various media, di such h as: -
Output
E-mail Mail EDI Fax XML
Output examples: -
Quotation Confirmation Invoice
Page 4-17
SAP ERP
Sales Order Process Pre-sales Activities
Sales Order Entry Check Availability Pick Materials
Receipt of Customer Payment Invoice Customer
Pack Materials Post Goods Issue Page 4-18
SAP ERP
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 callll records Ph d 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 probability. Page 4-19
SAP ERP
Pre-Sales Activities (CRM Light)
The ultimate goal of all presales activities is to equip the sales technician with all the information necessary to negotiate and complete the potential t ti l sale. l Information needed: -
Past sales activityy Past communication Contact information General Company p y info Credit limits and usage Current backorders
360º view of your customer Page 4-20
SAP ERP
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 p purchase. - How much will it cost - Material/Service availability - May contain specific quantities and dd dates t
The inquiry is maintained in th system the t and d a quotation t ti is i created to address questions for the potential customer.
Page 4-21
SAP ERP
Quotation
The quotation presents the customer with a legally binding offer ff to t deliver d li specific ifi products d t or a selection of a certain amount of products in a specified timeframe at a p pre-defined p price.
Page 4-22
SAP ERP
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 Page 4-23
SAP ERP
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(s) • Information about the specific product: Ex: material and p quantity, cost of an individual line
-
Schedule Line(s) • Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries
Page 4-24
SAP ERP
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
Page 4-25
SAP ERP
Delivery Scheduling
When an order is created 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 h d determining t i i our material t i l availability, il bilit or ATP (A (Availability il bilit tto Promise) date. The system will determine this date using forward and backward scheduling rules you have defined.
Page 4-26
SAP ERP
Order Date
1st
Backward Scheduling
Material Availability
2nd
Pick & Pack Time (2 days)
Transp. Sched.
3rd Transp. Sched. Time (1 day)
Loading
4th Loading Time (1 day)
Goods Issue
5th
Requested Delv. Date
6th Transit Ti Time (2 days)
Page 4-27
SAP ERP
Order Date
Forward Scheduling
Transp. Material Availability y Sched.
1st Pick & Pack Time (2 days)
2nd
3rd
Loading
Goods Issue
4th
5th
Transp. Sched. Time (1 day)
Loading Time (1 day)
Requested New Delv. Delv. Date Date
6th
7th
Transit Time (2 days)
Page 4-28
SAP ERP
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 is used to define the transit time of the material that we used in scheduling.
Page 4-29
SAP ERP
Availability Check -
Determines the material availability il bilit date d t Considers all inward and outward inventory movements
Proposes 3 methods of delivery -
Availability Check
One-time delivery Complete delivery Delayed y p proposal p
Rules are created by YOU
Page 4-30
SAP ERP
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 cumulative of all line items within the order - Line item pricing is for each specific material.
The system will automatically search for price, discounts, surcharges, g , calculate taxes and freight. g You have the ability y 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
Page 4-31
SAP ERP
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 y can be configured g to block orders and deliveries.
Page 4-32
SAP ERP
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
Page 4-33
SAP ERP
Shipping
Sales Order 1
Sales Order 4
Sales Order 2
Delivery 8…13 8 13
Sales Order 3
Delivery 8…14
Delivery 8…12
Order Combination
Sales Order 5
Delivery 8…16
Delivery 8…15
Partial Delivery
Complete Delivery
Page 4-34
SAP ERP
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
Page 4-35
SAP ERP
Delivery Creation
Generates packing proposal Calculates weight and volume Checks scheduling Considers p partial deliveries Updates route assignment Assigns picking location Updates sales order Determines batches Quality check (if needed) Updates sales order
Page 4-36
SAP ERP
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
Page 4-37
SAP ERP
Picking
Quantities based on delivery note Assigned date when picking should begin Automated storage location assignment Supports pp serial number/lot number tracking g and batch management Integrated with Warehouse Management (WM)
Page 4-38
SAP ERP
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 T k the th packed k d product d t by b container t i Insures weight/volume restrictions are enforced All packed items are assigned to the required means of transportation
Page 4-39
SAP ERP
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 pp g p process and updates p the status of the shipping pp g documents
Page 4-40
SAP ERP
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 invoice. It will update the customer’s credit status.
Page 4-41
SAP ERP
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 g to await p payment. y
Page 4-42
SAP ERP
Billing Methods
Delivery based Invoicing
Delivery 8 8…20 20
Invoice 9 9…45 45
Delivery 8…21
Invoice 9…46
Order 6
Delivery 8…33
Collective Invoicing
Order 9 Deliveryy 8…34 Order 14
Split Invoicing
Invoice 9…68
Delivery 8…56
Invoice 9…91 Order 32
Delivery 8…86 Invoice 9…92
Page 4-43
SAP ERP
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 invoice.
Payment will create a posting clearing the liability in the A/R account and increases your bank account.
Page 4-44
SAP ERP
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 ti time a change h iis made d tto any d documentt created t d iin th the customer t order d management cycle (Order-to-Cash).
Page 4-45
SAP ERP
Sales Order Process Debugging
“Never again did I learn so much in such a short time, because twenty participants p p made mistakes for me! You cannot make so many mistakes all alone” alone SAP Co-founder Klaus Tschira on his experiences teaching COBOL to clients at IBM
Page 4-46
SAP ERP
Document Flow -
Sales Order Process Debugging
Gives Order Process Status
List of Sales Orders (VA05) -
Tool to Find Order Need student’s user id/data set number
Page 4-47
