1.3 || Sales and Distribution (SD)

Client

An independent environment in the system

Company Code

Smallest organizational unit for which you can maintain a legal set of books

Credit Control Area

An organizational entity which grants and monitors a credit limit for customers.

• It can include one or more company codes

Sales Organization

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

Division

A way of grouping materials, products, or services

Sales Area

Combination of Sales Organization, Distribution Channel and Division

• Determines conditions (i.e. pricing) for sales activities

Plant (here: Delivering Plant)

Plant from which the goods should be delivered to the customer

Shipping Point

• Loading Point

• Sales Office

• Sales Group

• Sales Person

Other SD organization units:

Customer Master

Contains all of the information necessary for processing

orders, deliveries, invoices and customer payment

• Every customer MUST have a master record

 But you can have one-time customers

Created by Sales Area

Sales Organization

• Distribution Channel

• Division

The customer master information is divided into 3 areas:

General Data

• Company Code Data

• Sales Area 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

data is stored in functional segments called

Views

Views

Material master data is stored in functional segments called

Condition Master Data (Pricing)

includes:

• Prices

• Surcharges

• Discounts

• Freights

• Taxes

you can define the _ to be dependent on

various data:

• Material specific

• Customer specific

 Conditions can be dependent on any document field

Output

is information that is sent to the customer using various media, such as:

• Electronic Data Interchange (EDI)

• Email

• Mail

• Fax

• XML

 Functions for sales, shipping, transportation, and billing

Examples of - types in SD processing are order confirmations, freight lists, and invoices

• The - type defines how the - should be transmitted (sent via EDI, or as a print-out)

 Generation of

• Sales activity output (e.g. customer telephone calls, mailing campaigns)

• Group output (e.g. freight lists)

Sales Support

is a component of SD that assists the processes of sales, distribution, and marketing of

companies as well as their product and services to its customers

 It contains the following functionality

• Creating and tracking customer contacts and communications (sales activity)

• Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes

Inquiries

Quotations

Pre-sales documents:

pre-sales activities

The ultimate goal of all — is to equip the sales technician with all the information necessary to

negotiate and complete the potential sale

• Past sales activity

• Past communication

• Contact information

• General company info

• Credit limits and usage

• Current backorders

Inquiry

is a customer’s request to a company for

information or quotation in respect to their products or services

without any obligation to purchase

• How much will it cost

• Material/Service availability

• May contain specific quantities and dates

 The - is maintained in the system and a quotation is

created to address questions for the potential customer.

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.

 Legally binding on the vendor

 Conditions can apply at various levels:

• to the entire quotation

• at item level, to the material to be supplied or to the planned

procurement in the case of services

• at service-line level for individual services (tasks or activities)

Sales order processing

an originate from a variety of documents and activities

• Customer contacts us for an order: phone, internet, e-mail

• Existing Contract

• Quotations

Customer Information

• Material/service and quantity

• Pricing (conditions)

• Specific delivery dates and quantities

• Shipping information

• Billing Information

The electronic document that is created should contain the following basic information:

Header

Line Item(s)

Schedule Line(s)

The sales document is made up of three primary areas:

Header

Data relevant for the entire sales order: e.g.: customer data, total

cost of the order

Line Item(s)

Information about the specific product: e.g.: material and quantity,

cost of an individual line

Schedule Line(s)

Uniquely belongs to a Line Item, contains delivery quantities and

dates for partial deliveries

Sales Order

contains all of the information needed to process your customers request

The following information is determined for each:

• Delivering Schedule

• Shipping point and route determination

• Availability Check

• Transfer of requirements to MRP

• Pricing

• Credit limit check

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 determining our material availability,

or ATP (Availability to Promise) date.

 The system will determine this date using forward and backward scheduling rules you have defined.

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.

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 USERs

Header pricing

is valid for the whole order and it is the cumulative of all line items within the order

Line item pricing

is for each specific material.

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 report about the customers’ credit situation that

arises

 If necessary, the system can be configured to block orders and deliveries

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 progressing the shipping:

• Picking

• Packing

• Post Goods Issue

 Integrated with the Material Management (MM), extended Warehouse Management (eWM) and Finance (FI)

modules

Delivery Document

initiates the delivery process and is the control mechanism for the following processes:

• Picking

• Packing

• Loading

• Posting Goods Issue

 Changes to delivery are allowable - products, quantities

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)

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

Goods issue

Event that could indicates the legal change in ownership of the products

• It signals that the goods have left the premises of the seller. Legal change in ownership depends on the “Incoterm” and

what is written in the sales order terms and conditions.

 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

Billing

document is created by coping data from the sales order and/or delivery document.

• Order-based billing

• Delivery-based billing

 The - process is used to generate the customer invoice

 It will update the customer’s credit status.

 The - document will automatically create a debit posting to your customer’s sub-ledger account and credit it

to your revenue account

 It is at this point that the sales process is passed over to Financial Accounting to await 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

 will create a posting clearing the liability in the A/R account and increases your bank account.

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).

Manage Business Partner Master Data

In the space Sales and Distribution in the role of Sales Representative use the

app _ to create a new customer.

Manage Sales Inquiries

In the space Sales and Distribution in the role of Sales Person, use the _ app to create an inquiry.

Manage Sales Quotations – Version 2

Create Customer Quotation

The Bike Zone would like a firm quote for the items in the inquiry created

before. We can do this easily by copying the details from the inquiry into the

new quotation. To do this, in the space Sales and Distribution and in the role

of Sales Representative, use the _ app.

inquiry

An _ is a customer’s request to be provided with a quotation or sales

information without obligation. An — can relate to materials or services,

conditions, and if necessary delivery dates.

presents the terms (price, delivery schedule) to a customer

considering a purchase.

quotation

is similar to inquiry, except that it is a legally

binding offer for delivering the requested product or services.

Manage Sales Orders –Version 2

Create Sales Order Referencing a Quotation

In the space Sales and Distribution and in the role of Sales Representative,

you can use the _ app to create a sales order.

Stock – Multiple Materials

Check Stock Status

We can check on the inventory level of the bikes in the sales order for The

Bike Zone. For this purpose, in the space Sales and Distribution and in the

role of Sales Representative, you can use the _ app.

Check Stock Status

The goods issue of the order has an impact of the inventory level of the bikes

for Global Bike. To have a look at it, in the space Sales and Distribution and

in the role of Sales representative, use the _– Multiple Materials app.

Track Sales Orders

Track Sales Order

With relatively little user input, the sales order for The Bike Zone has been

created. The app provides the opportunity to review the

order in detail.

Scenario

To display and track a sales order, in the space Sales and Distribution and in

the role of Sales Representative, please use the _ app.

Track Sales Order

To display and track a sales order, in the space Sales and Distribution and in

the role of Sales Representative, use the app again.

Review Document Flow

The document flow tool links all documents that were used in The Bike Zone’s

sales order. Again, there are many ways to access the document flow tool. One

way is to start by displaying the sales order document.

Document Flow

To display and track a sales order, in the space Sales and Distribution and in

the role of Sales representative use the _ app again.

Create Outbound Deliveries

Start Delivery Process

To start the process that will fulfill The Bike Zone’s order, we need to create a

delivery document. To do this, in the space Sales and Distribution and in the

role of Warehouse employee, use the _ – From Sales

Orders app.

Manage Outbound Deliveries

Pick Materials and Post Goods Issue

Picking a material changes the outbound delivery document, while goods issue

subsequently changes the ownership of the material from Global Bike to The

Bike Zone. To do this, in the space Sales and Distribution and in the role of

Warehouse employee use the _ app.

Create Billing Documents

Create billing document for Customer

With the delivery complete, the customer can be invoiced. To do this, in the

space Sales and Distribution and in the role of AR Accountant, use the _ app.

Manage Billing Documents

Display Billing Document and Post Customer Invoice

Now that the billing document has been created, it needs to be posted.

Therefore, in the space Sales and Distribution and in the role of AR

Accountant, use the _ app.

Post Incoming Payments

Post Receipt of Customer Payment

After The Bike Zone mails its payment, it needs to be recorded. To do this, in

the space Sales and Distribution and in the role of AR Accountant use the _ app.