delivery process sourav
TRANSCRIPT
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THE PROJECT ENTITELED
“SAP SD PROCESS IN TATA MOTORS”
Dissertation submitted in partial fulfilment of the requirements for the Award of the Degree of
MASTER OF BUSINESS ADMISTRATION
OF
BANGALORE UNIVERSITY
SUBMITTED BY
SOURAV GHORAI REG. NO: 15M9CMD108
UNDER THE GUIDENCE OF
PROF. PRIYANKA MNK (ASSISTANT PROFESSOR)
KOSHYS INSTITUTE OF MANAGEMENT STUDIES
BANGALORE UNIVERSITY (2016-2017)
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DECLARATION BY THE STUDENT I hereby declare that “SAP Sales and Distribution delivery process in TATA
Motors Ltd.” is the result of the project work carried out by me under the
guidance of Prof. PRIYANKA MNK in partial fulfilment for the award of
Master’s Degree in Business Administration by Bangalore University.
I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other university or Institute for the award of any other
degree or Diploma or Certificate.
Place: BANGALORE Name: SOURAVGHORAI
Date: Register Number: 15M9CMD108
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CERTIFICATE BY CO-GUIDE
This is to certify that PROF. PRIYANKA MNK of KOSHYS INSTITUTE OF
MANAGEMENT STUDIES, has undertaken dissertation in our organization on
the topic “SAP Sales and Distribution Delivery Process in TATA Motors Ltd.”
Between 26th December 2016 and 26th January 2017 .His Conduct and work is
Satisfactory
Seal
Signature
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CERTIFICATE OF ORIGINALITY
Date: 24/1/2017
This is to certify that the dissertation titled that “SAP Sales and Distribution
delivery process in TATA Motors Ltd.” is an original work of Mr. SOURAV
GHORAI; bearing University Register Number 15M9CMD108 and is being
submitted in partial fulfilment for the award of the Master’s Degree in Business
Administration of Bangalore University. The report has not been submitted earlier
either to this University /Institution for the fulfilment of the requirement of a
course of study .Mr. SOURAV GHORAI is guided by Prof. PRIYANKA MNK
who is the Faculty Guide as per the regulations of Bangalore University.
Signature of Faculty Guide Signature of Director / Principal /HOD
Date Date
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PROJECT TITLE
SD DELIVERY PROCESS IN TATA MOTORS
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INDEX TOPICS PAGES PROJECT DESCRIPTION 7
ABOUT SAP 8 SAP MODULES 9
ABOUT TOPICS 10 ABOUT TATA MOTORS 11 ROUTE DETERMINATION 12
CREATE OUTBOUND DELIVERIES 15 PICKING 24
PACKING 25 WAREHOUSE MANAGEMENT 26 GOOD ISSUE & CANCELLING 29
CONCLUSION 37
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PROJECT DESCRIPTION:
Here we are explaining Tata Motors delivery process with the help of SAP SD (Sales and
distribution).For delivery process of Tata motors the important factors are route determination,
outbound delivery, stock determination, good issue, warehouse management, picking, packing and
another important thing is Logistics Execution. The logistics process in a company that covers the
entire process chain from the vendor through the company warehouse, production facilities, and
distribution centres to the customer. Logistics Execution includes the goods receipt process, the
goods issue process, internal warehouse process, the transportation process. Organization structure
of logistics depends on Plant, Storage location, Warehouse number, shipping point. With the
availability of material or transport scheduling date, outbound delivery is required for due shipping
lines. It involves shipping activities like picking of goods, transportation scheduling, etc. An
outbound delivery is done with the shipping points and is determined at the time of placing the
order. You can also define a shipping point manually at a later stage. some checklist points to be
carried out when a delivery is created –To check the material and order to ensure if the outbound
delivery of goods is possible, Defining the quantity of goods and its availability, Packing the
outbound delivery, Calculating weight or volume of delivery, Find out the delivery situation and
the delivery agreement, Defining the route, Finding the pickup location, Quality check of material
to be delivered, Updating and changing the status of the sales order. There are various functions
in delivery processing like –Quantity Management and adjustment, Text Management ,
Printing, Validation.
Integration of SAP SD in the Enterprise Structure of TATA Motors
SAP SD helps to manage the complete vehicle order-to-delivery process, Manufacture and deliver
components. SAP SD Handle warranty claims with efficiency and accuracy and Enhance
dealership management. It helps to manage relationship with customers and Partners. Because of
SAP there is an integration with the vendors and the suppliers. In SAP SD There will be better
control on receivables and credit control. Here a single unified database maintain. Procurement
process from various vendors will be automated. There is catalogue content management which
helps in coordinating with suppliers. It’s help to streamline procurement process management
among different locations worldwide. SAP SD helps Parts validation through spend control and
analysis and Keeping records of daily billing, receivables and sales. Transparency in the process
for suppliers and payments status to suppliers through portal is achieved. Among other significant
benefits achieved by Tata motors is that there are quick and live options for competitive pricing.
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ABOUT SAP
SAP the company was founded in Germany in 1972 by five ex-IBM engineers. In case you're ever
asked, SAP stands for Systems, Applications, and Products in Data Processing. SAP is an
integrated business software to process all functionalities of an organisation in order to obtain a
unified solution. The SAP R/3 enterprise application for open client/server systems has established
a new standards for providing business information management solutions. The original SAP idea
was to provide customers with the ability to interact with a common corporate database for a
comprehensive range of applications. Gradually, the applications have been assembled and today
many corporations, including IBM and Microsoft, are using SAP products to run their own
businesses. SAP product are consider excellent but not perfect. The main problems with software
product is that it can never be perfect.
SAP Module There are 2 Types of SAP ERP Modules. First is Functional Modules and second one is Technica l
Modules. All SAP Modules integrated with each other with functionality and provide us best
solution for Business. Most important SAP Modules are financial accounting (FI), controlling
(CO), materials management (MM), and production planning (PP), Sales and distribution
(SD), Human resource (HR)
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ABOUT SAP SD
The SAP SD module is one of the primary ERP module developed by SAP. SAP service
and distribution deals in better management of sales and customer distribution data and
processes in organizations. It works closely with other SAP modules towards effective
process work. Other modules that SAP SD integrates are financial accounting (FI),
controlling (CO), materials management (MM), and production planning (PP) and so on.
All these collaborate together and enhance the work process in enterprises.
SAP Sales and Distribution is one of the key components of SAP ERP system and is used to
manage shipping, billing, selling and transportation of products and services in an organizat ion.
SAP Sales and Distribution module is a part of SAP Logistics module that Manages customer
relationship starting from raising a quotation to sales order and billing of the Product or service.
This module is closely integrated with other modules like SAP Material Management and PP.
The main areas covered by this module and the sub modules are:
Pre-sales activities, including Inquiry and Quotation creation, Sales Order processing, includ ing
Sales Order (SO) creation, shipping, including Outbound Delivery document creation, Billing,
including billing document and invoice creation. The key components in SAP Sales and
Distribution module are Customer and Vendor Master Data, Sales Support, Shipping of Material,
Sales Activities, Billing related, Transportation of products, Credit Management, Contract
Handling and Management, Foreign Trade, Information System.
SAP sales and distribution cycle
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ABOUT TOPICS:
Here we are explaining Tata Motors delivery process with the help of SAP SD (Sales and
distribution). In the delivery process of Tata motors the important factors are route determination,
outbound delivery,stock determination, and goods issue, warehouse management, picking and
packing. Another important thing is Logistics Execution. The logistics process in a company that
covers the entire process chain from the vendor through the company warehouse, production
facilities, and distribution centre to the customer. Logistics Execution includes the goods receipt
process, the goods issue process, internal warehouse process, the transportation process.
Organization structure of logistics depends on Plant, Storage location, Warehouse number,
shipping point.
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ABOUT TATA MOTORS:
Tata Motors is part of the USD 100 billion Tata group founded by Jamsetji Tata in 1868.
Sustainability and the spirit of ‘giving back to society’ is a core philosophy and good corporate
citizenship is strongly embedded in our DNA. Tata Motors is India’s largest automobile company.
TATA MOTORS belief that bring to the customer a proven legacy of thought leadership with
respect to customer-centricity and technology. Tata motors are driving the transformation of the
Indian commercial vehicle landscape by offering customers leading edge auto technologies,
packaged for power performances and lowest life-cycle costs. TATA MOTORS new passenger
cars are designed for superior comfort, connectivity and performance. What keeps them at the
forefront of the market is our focus on future-readiness and our pipeline of tech-enabled products.
TATA MOTORS design and R&D centres located in India, the UK, Italy and Korea strive to
innovate new products that achieve performances that will fire the imagination of Gen Next
customers. Across the globally dispersed organisation that TATA MOTORS are today, TATA
MOTORS mission “to be passionate in anticipating and providing the best vehicles and
experiences that excite our customers globally”.
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DELIVERY PROCESS OF TATA MOTORS:
Shipping is defined as a very important activity in the sales process. It comes under the logist ics
chain and guarantees customer service and distribution of goods. It is a significant component of
Sales and Distribution module. It is used to perform outbound delivery and other shipping activit ies
like picking and packing of the goods. In the shipping process, there are a few key sub processes,
which include-Delivery processing of the goods, Picking of items, packing of the goods, Post
goods issue, Shipping communication, Planning & monitoring of shipping.
ORGANIZATIONAL UNITS IN SHIPPING
In shipping the stock of goods is managed at Storage Locations. The shipping point key
characteristics include- It is under client location, An Outbound Delivery is processed from a single
Shipping point, Shipping point is determined at Item level in the order. Shipping point can process
outbound deliveries of several plants. You can also assign several shipping points to one plant, but
each point should have a different loading equipment or a different processing time. Other
Organization units are warehouse, type of storage, etc. There is a warehouse that is assigned to a
plant and storage location. There can be multiple storage locations in a plant and they can point to
one warehouse.
Each outbound delivery starts at a shipping point, continues along a route, and has ship to party as
the destination. These elements are header fields in the outbound delivery. The SAP system
supports the following function within shipping processing includes-Monitoring of deadlines for
reference document due for shipping, Creation and processing of outbound deliveries, Monitoring
of goods availability, Monitoring of capacity situation in the warehouse Support for picking (With
link to the warehouse management system), Printing and distribution of shipping documents ,
Processing of goods issue, Controlling through overviews of -Outbound deliveries currently in
process, Activities still to be performed, Possible bottlenecks
ROUTE DETERMINATION:
Route determination is done based on the target country and transportation zone along with the
shipping point. If you have the same shipping points for two deliveries to the same country and
same transportation zone, then the same route determination is applied to both. While creating a
delivery document, its route is determined based on the shipping party and ship to party
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information. While creating a delivery document, its route is determined based on the shipping
party and ship to party information
DEFINE ROUTE AND STAGES:
Go to: SPRO > IMG > Logistics Execution > Transportation > Basic Transportation Function >
Routes >Define Routes > Define Routes and stages
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After a new window will open and it will show the list of existing routes, Click New Entries.
After that enter the details in new window along with route stages and define. Once these details are entered click save. MAINTAIN STAGES FOR ALL ROUTES
Go to: SPRO > IMG > Logistics Execution > Transportation > Basic Transportation Function
> Routes >Define Routes > Maintain Stages for all routes after that fill Route, Stage Category,
Departure Point Destination Point, etc. & click save.
DEFINE DELIVERY DOCUMENTS
Transaction code: OVLK
PATH:-IMG-Logistics execution-Shipping-Deliveries-Define delivery types-Choose delivery
document LF from position button-Click on details icon
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OUTBOUND DELIVERY
With the availability of material or transport scheduling date, outbound delivery is required for
due shipping lines. It involves shipping activities like picking of goods, transportation scheduling,
etc. An outbound delivery is done with the shipping points and is determined at the time of placing
the order. You can also define a shipping point manually at a later stage.
CREATE OUTBOUND DELIVERIES:
If you know the order number, you can create one outbound delivery for a single order. You can
change the shipping data at any point, if required.
Use T-Code: VL10B
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Enter the Shipping Point from shipping data. In the Purchase Order tab, enter PO number due for
delivery and quantity.
To create an outbound delivery with Order Ref or W/O Order Reference
Use T-Code: VL01N
TO CHANGE THE OUTBOUND DELIVERY
Use T-Code: VL02N
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DEFINE ITEM CATEGORY FOR DELIVERIES:
Transaction code: OVLP
PATH: IMG- Logistics execution- Shipping- Deliveries- Define item categories for deliveries-
Choose item category DLN from position button- Click on details icon
Document category [J] = Delivery
A classification for the different types of documents that you can process in the sales and
distribution system. Like Quotations, Sales orders, Deliveries and Invoices
Material number 0 allowed: It controls whether it makes sense to enter an item in the SD
document with this item category without specifying a material. It allows to create a delivery
document for a line item with 0 quantity.
Use: It would make sense to set this indicator for text items.
Item category statistics group [1] = Order, debit memo
It specifies a statistics group for this item category and helps determine which data the system
updates in the Logistics Information System.
Stock determination rule: Stock determination rule and stock determination group are combined
into one key for stock determination strategy. It will be used in the repetitive manufactur ing
process
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Check quantity 0 [A] = Note about the situation
It specifies when we create an item that has a 0 quantity. In this situation how system should give
message. It is useful for the items that are creating without order.
Check minimum quantity [A]: Note about the situation
It specifies whether system has to check minimum delivery quantity, and system reactions when
the minimum delivery quantity has been to yet reach. This field works according to the customer
material info record, and material master record. System gives warning or error message.
Check over delivery: It specifies how the system reacts whether warning or error message during
delivery processing when original order quantity exceeds delivering order quantity. It works
according to customer material info record.
Availability check off: It is the control to switch on/off availability check for delivery items.
Rounding: This indicator specifies rounding rules for whole number unit of measure. It is useful
for BOM items.
Relevant for picking or put away: It indicates whether item of this type are relevant for picking
or put away. In the outbound delivery process, only delivery items that are relevant for picking are
transferred to the warehouse. Management. Service items and text items are not transferred to the
warehouse. In the case of inbound deliveries this indicator controls whether the item is relevant
for put away in the warehouse.
Storage location required: This indicator makes storage location as mandatory in the delivery
document.
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Determine storage location: It indicates whether system has to determine storage location
automatically.
Do not check storage location: It indicates whether system should run a check for the storage
location that was determined.
No batch check: It specifies system checks the batch number that entered in the delivery
document.
Packing control: It indicates whether delivery items with this item category:
May be, Cannot be or must be packed
Pack accumulated batch items: It specifies if for a batch material only the main item with
accumulated batch quantity is to be packed in the delivery, or if only items in which the batch is
recognized can be packed.
Automatic batch determination: This indicator enables to determine batch automatically in the
delivery documents.
Text determination procedure [02]: It identifies a group of text types that you can use in, for
example, standard terms of delivery. The text procedure also determines the sequence in which the
text types appear in the document.
Standard text: Number of the standard text. This is not used at present.
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SHIPPING POINT DETERMINATION:
Transaction code: OVL2
Path: IMG-Logistics-Execution-Shipping-Basic shipping functions-Shipping points and goods
receiving point determination-Assign shipping points-Go to new entries-Specify Shipping
Conditions + Loading Group + Delivering Plant = Proposed Shipping Point-Save and Exit
Route determination: Route can be re-determined in the deliveries. System re determines the
route by taking weight group in to the consideration along with other factors that are required to
determine route. Route determination procedure is same as we defined earlier.
Incompletion control for deliveries: We can determine incompletion procedure for Delivery
Document Header [G], Delivery Document Item [H]
Procedure is same to define incompletion control for deliveries as we defined earlier.
Availability check and TOR: procedure is same to configure Availability check and TOR for
delivery documents as we defined earlier.
Output control: We can determine output for outbound deliveries, inbound deliveries, and
handling units and for groups. Procedure is same to configure output for delivery. Output types for
outbound deliveries:
CANO = Forwarding notification
LALE = Shipping notification to Sold – to – party
LAVA = Outgoing shipping notification
LD00 = Delivery note
MAIL = Mail
PL00 = Packing list
Partners: We can determine master data like delivery priorities, customer calendars, and goods
receiving hours.
Partner determination procedure:
LF = Delivery note
LO = Delivery without order
EL = Shipping notification
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Text control: We can determine text for delivery document header and item. Procedure is same
as we define earlier.
Pricing: We can define and assign pricing procedure for value contracts. We can define pricing
procedure for delivery and we can assign pricing procedure for deliveries.
Material determination: We can map the material determination as well as listing and exclusion
also for deliveries. Procedure is same as we defined earlier.
Proof of Delivery [POD]: We can map Proof of Delivery in deliveries section. We can release
POD automatically by using transaction code: VLPODQ. POD is essentially designed to support the process of only creating an invoice once the customer
has confirmed the arrival of the materials. After receiving the goods, the ship-to party transfers the
POD to the system by ID and thereby confirms the quantities for the whole delivery.
In most cases for which there are no discrepancies of quantity, this involves no extra effort, because
verification and confirmation are automated using the ID. If differences are reported, the proof of
delivery cannot automatically be confirmed. In such a case, you must continue processing
manually.
SHIPMENT OR DELIVERY SCHEDULING
Different Times involved in delivery scheduling-Pick/Pack Time, Loading Time, Transportation
Time and Transit Time
BACKWARD SCHEDULING: system confirms the quantity of delivery on the basis of
customer request delivery date.
FORWARD SCHEDULING: system confirms the quantity on the basis of New Material
availability date. Precise scheduling-the system calculates and displays the results of scheduling
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down to minute. If you have maintained the working times of the shipping point, the system
performs precise scheduling.
COPY CONTROL:
Transaction code: VTLA
We can maintain the copy control for sales document to delivery document.
Sales document to Delivery document – Header
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Order requirements [001] = Header
In order to form the basis of a delivery, a sales document must be a sales order and not for an
inquiry or a quotation.
Combination requirement [051] = Combination
The sales orders you want to combine must have the same sales organization, the same billing type
and the same partial delivery agreement.
Header data [001] = Header
According to the routine, the system checks that certain sales document header fields I the source
document meet the right conditions. If they do, the system copies them into the target document.
Copy item number: It indicates whether the system copies the item numbers from the source
document into the target document. If you expand a document by copying in only partial item
information from another document,the system does not copy the item numbers.
SALES DOCUMENT TO DELIVERY DOCUMENT – ITEM
Order requirements [101] = Item
In order to form the basis of a delivery, a sales document must be a sales order and not for an
inquiry or a quotation.
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Item data [699] = IDES item According to the routine you specify, the system checks that certain
sales document item fields in the source document meet the right conditions. If they do, the system
copies them into the target document.
Business data [2] = Business Data According to the routine you specify, the system checks that
certain business data fields in the source document meet the right conditions. If they do, the system
copies them into the target document.
Update document flow: It indicates whether the system creates a document flow record when you
copy one sales document into another.
Use: The flow record includes information about how much of the quantities and values in the
source document have been copied into the target document.
Positive/Negative quantity [+]: Indicates whether, during copying, the quantity or value in the
target document has a negative effect, positive effect, or no effect at all on the quantity still to be
completed in the source document.
PICKING
Picking of goods is done in SAP warehouse management system. It is done via a transfer order,
which is used for picking list and to withdraw the goods from the stock.
There are three types of Picking –
Picking of goods individually
Picking as per defined intervals
Automatic Picking in SAP SD module
Packing of goods is done with the packing material and to be created as material type –“VERP”
can be done in two ways – Manual & Automatic
The Post Good Issue (PGI) is the last step in delivery processing and in this goods ownership is
moved to the customer and stock is updated as per delivery.
These functions can be performed in the system using the following steps –
Creating an Outbound delivery
Creating Picking Request
Create Packaging
Creating Post Goods Issue
CREATING A PICKING REQUEST
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Use T-Code: LT03
After that Enter Warehouse- Enter Plant- Enter Delivery- Press Enter –save
CREATING A PACKING REQUEST
The packing function is available for the following documents-In orders (as packing proposals),
In the inbound delivery, In the outbound delivery, In the shipment document .The packing proposal
in the order can be copied to the outbound delivery. You control this at the header level in the copy
control table for deliveries. To make packing in the outbound delivery subject to certain conditions,
make settings in Customizing (with the Standard setting, packing cannot be carried out when the
delivery has been blocked by a credit check).
The system copies packing in the outbound delivery to the shipment. You can choose to pack all
the deliveries together. Use user exits to specify rules for automatic packing during the creation of
outbound deliveries. The resulting proposal contains the packaging materials and the contents of
each handling unit. Activate automatic packing for each delivery type separately.
We can use T-Code: VL02N, Enter Outbound Delivery and click Pack.
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Select Pack Material and Enter Packaging Material details.
Click save
WARE HOUSE MANAGEMENT
Warehouse is a complete physical warehouse is defined under a single warehouse number. By
using this warehouse number we can manage several individual warehouse buildings that together
form a complete warehouse complex. Warehouse number encompasses (include) the
organizational plan and physical aspect of warehouse complex in a single concept. Warehouse can
be used to kept finished products.
Warehouse can be:
Goods receipt area
Goods issue area
Hall with high rack shells
Bulk storage area
Picking area with fixed bins
Outside storage yard for special goods
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Warehouse structure:
Storage type: Storage type is nothing but a storage area, warehouse facility. Warehouse zone that
we defined for warehouse number. It is a physical or logical sub – division of a warehouse complex
that characterized by its warehouse technique, the space used, its organizational form or its
function. A storage type consists of one or several storage bins.
EX: Bulk storage, open storage, high rack storage, picking area, and shelf storage
We have to define important control indicators/parameters for storage type that determines
material flow (put away/picking activities).
EX: Put away, Picking, Blocking indicators, and Inventory procedure.
Storage section: It is an organizational subdivision of a storage type that group together storage
bins with similar Features for the purpose of putting away stock. We must create at least one
storage section for each storage type.
Picking area: Picking area is a section within a storage type in which all picking activities are
carried out in the same way. It groups storage bins together from the view point of picking
strategies and is a counter part to the Storage section which groups bins from the view point of put
away strategies.
Create Storage Bins: Transaction code: LS01N
Path: Logistics-Logistics execution-Master data-Warehouse-Storage bin-Create-LS01N –
Manually
Quant: It is a stock of any material with same features in one storage bin.
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Door: Where the goods arrive at or leave the warehouse. It is an organizational unit that is assign
to the warehouse Number. The doors are located in a close proximity to the respective staging
area.
Staging area: It is an organization unit that is assigned hierarchy to the warehouse number. It is
used to organize the goods flows in the warehouse. It is used as an interim storage of goods in the
warehouse. It is assigned to doors.
EX: Goods receipts and Goods issues.
NOTE: Warehouse management configured by MM consultants.
Lean warehouse management configured by SD consultants.
Lean warehouse management: In warehouse management system, goods movements and stock
changes takes place at storage bin level. But with lean warehouse management, inventory
management takes place at storage Location level. We used to process goods receipts and goods
issues. We have to create transfer orders for deliveries. Transfer Order serves as a picking list.
Pre – Requisites: We can only implement it with fixed storage bin. Assign a newly defined storage
location to warehouse number. Setup at least two storage types:
1. Picking storage type as the source storage type.
2. In shipping area as a destination storage type for deliveries.
CONFIGURATION SETTING:
Define warehouse number
Path:-IMG-Enterprise structure-Definition-Logistics execution-Define, copy, delete, check
warehouse number-Define warehouse number-Choose existing lean warehouse number-Click on
copy as icon and rename-Save and Exit
Define new storage location
Path: IMG-Enterprise structure-Definition-Material management-Maintain storage location-Enter
plat in work area and press enter-Go to new entries-Define storage location-Save and Exit
Assign warehouse number to plant/storage location
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Path: IMG-Enterprise structure-Assignment-Logistics execution-Assign warehouse number to
plant/storage location-Go to new entries-Specify the plant, storage location and warehouse
number-Save and Exit
Define master data
Path: IMG-Logistics execution-Warehouse management-Master data-Define control parameters
for warehouse number-Choose our warehouse number from position button-Select it-Click on
details icon-Maintain the details-Save and Exit
Define picking areas
Path: IMG-Logistics execution-Shipping-Picking-Lean WM-Define picking areas-Check our
warehouse number with picking areas existed or not-Save and Exit
Control Plant/Storage Location/Warehouse number assignment
Path: IMG-Logistics execution-Shipping-Picking-Lean WM-Control Plant/Storage
Location/Warehouse number assignment-Choose our Plant, Storage Location and Warehouse
number-Assign degree of activation as 1 [1 = Lean warehouse management in connection with
deliveries-Specify storage type 005 fixed bins that we define-Save and Exit
GOODS ISSUE:
In order for a goods issue to be posted, all mandatory shipping activities need to be performed. For
example, if you are working with a picking relevance and confirmation requirement, these steps
must first be completed. The goods issue can be posted by changing a single outbound delivery.
Alternatively, you can use the collective processing function to select all deliveries for which
goods issues are due to be posted, and then post the goods issues for them. You can also use the
outbound delivery monitor to do this. You can also post the goods issue automatically when the
transfer order is confirmed. When you process a single outbound delivery, you can specify the
actual goods issue date without changing the planned date. A dialog box appears in which you can
enter the actual goods issue date, and then post the goods issue for this date. The corresponding
goods issue document is posted with the actual goods issue date. If no explicit specifications are
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made for the goods issue date, the system takes the current date as the goods issue date. The goods
issue applies to the entire outbound delivery. Errors are logged when data such as the batch or
serial number is missing or when picking has not been carried out fully for the items. In these
cases, the system does not post the goods issue. After the goods issue has been posted, the scope
of changes that can be made to the outbound delivery becomes limited. In particular, no changes
can be made to the quantities. At this point in processing, the delivery document has to reflect the
actual physical delivery.
The following are the functions of a goods issue:
Reduces inventory stock
Posts the value change to the stock accounts in inventory accounting
Reduces delivery requirements
Enters status information in the outbound delivery and the sales order
Updates the status in the document flow
Creates a work list for billing
To carry out billing before the goods issue is posted (using the “Create billing document”
transaction), you can make the appropriate settings in copy control in Customizing.
POST A GOOD ISSUE PGI
T-Code: VL02N
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Click Post Good Issue and a message will appear – Replenishment Delivery has been saved.
PGI creates two documents – Material Document, Accounting Document
QUALITY INSPECTION
The Quality Management (QM) component supports Sales and Distribution with quality
inspections for goods issues (for example, packing inspections). If a quality inspection is to be
carried out for a material, you must specify this requirement in the Quality Management view of
the material master.
When the outbound delivery is created, QM automatically creates an inspection lot for the delivery
items that are relevant for inspection. The inspection lot tells the quality assurance department that
the goods need to be inspected.
You can store the result of the inspection in the system in the following ways:
Damaged goods are stored as defect records.
Measured values or evaluation codes are stored as characteristic values.
The type and procedure used by the inspection are stored in the QM master data.
The usage decision represents the completion of a QM inspection. This is where the inspected
goods are either accepted for further use or rejected. This is called “accepting” or “rejecting” an
inspection lot Depending on the customer, or on the customer and the material together, you can
specify whether the system must accept the inspection log before it posts a goods issue. If it must
not be accepted, the quality assurance department can submit the inspection results after the goods
issue posting. You print a certificate of quality from the output control of the outbound delivery at
item level. This function is primarily used for materials that are handled in batches.
CANCELLATION OF GOOD ISSUE
If you cancel a goods issue for an outbound delivery, the system does the following-Resets the
goods issue posting, Copies the quantities and values from the original goods issue document,
Carries out an inventory posting based on these quantities and values with a reversed +/- sign. If
you cancel a goods issue, this affects the entire outbound delivery. The cancellation document
created during cancellation is entered in the document flow for the outbound delivery. After a
goods issue has been cancelled, the goods movement status of the outbound delivery is reset to
"Not yet started". This allows you to further process the outbound delivery as usual. The delivery
requirements are also re-created. Cancelling a goods issue comprises two steps if the outbound
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delivery has been either fully or partially billed. In this case, you must first cancel the billing
document. Then, you can cancel the goods issue.
RETURNABLE PACKAGING
It is used in the process whereby the business sells items to the customer. These items are packed
into shipping units such as Boxes and Crates. Then the customer can keep the boxes or crates up
to a certain period of time and then must return the item. Should the customer not have return the
shipping units with in specified date or have been destroyed, and then business may bill the
customer for damage goods.
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Scenario 1: If the customer returns returnable packaging material, then business has to pick up
returnable packaging material from customer site. Then Go to VA01 and raise the sales order
[Document type AT] Specify the returnable packaging stock quantity-Save and Exit-Go to VL01N
and do the return delivery for returnable packaging quantity-Do the PGR and save the document
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Scenario 2: If the customer does not return the returnable packaging items, then business has to
bill the customer. Go to VA01 [Document type LN] and raise the order-Specify the reason as goods
damaged at customer place-Save and Exit-Go to VF01 and raise the Invoice with reference to LN
document
BATCH PROCESSING IN DELIVERY
You can specify a batch in the relevant-details screen for materials that are handled in batches
within the SAP system. The system indicates whether a material is handled in batches in the
material master record in the Storage 1 or Purchasing screens. When delivering a sales order, this
batch is copied to the outbound delivery. You cannot change it there. If a batch has not been
specified in the sales order, you can enter one in the picking overview screen of the outbound
delivery. You must specify a batch before goods are issued. You have to use the batch split function
if you want the system to take the delivery quantities of an item from different batches.
Carry out batch splits as follows:
Manually, in the batch split screen of the delivery item
Using automatic batch determination when creating the outbound delivery (you have to use
the batch split function if the delivery quantities of an item are to be taken from different
batches)
Using manually-triggered batch determination in the batch split screen
Using Warehouse Management (WM)
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SERIAL NUMBER IN DELIVERY:
Company can assign a unique serial number to each material. This assignment allows you to do
the following:
Monitor goods movement for individual materials (for example, when selling materials to a
customer)
Manage the maintenance of individual materials more easily in the system if equipment master
records exist for these materials
To use serial numbers, enter serial number profiles in the master records for the relevant materials.
Serial numbers are usually specified in the delivery item. However, you can also define them in
the order. You can also have the system assign the serial numbers automatically. You must specify
all serial numbers before posting goods issue.
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PRICING CONDITION IN DELIVERY:
The outbound delivery may contain shipping-related conditions, such as shipping or freight costs
(if you are not using the transportation module). You can enter the condition values manually or
determine them using the SD pricing condition technique. You can print the conditions on the
delivery note and transfer them in the billing document, but you cannot transfer them from the
preceding documents to the outbound delivery. To implement the conditions, use the standard
Customizing settings for pricing (condition type definition, maintaining the pricing procedure).
Assign the pricing procedure to the delivery type.
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IMPORTANT TRANSACTION CODE WE USE
VL02N Change outbound delivery
VL03N Display outbound delivery
VL06O outbound delivery Monitor
VL02 Change outbound delivery
VL03 Display outbound delivery
VLPOD POD - Change outbound delivery
VL01N Create outbound Delivery with Order Ref.
VL10B Purchase Orders Due for delivery
VL10 Edit User-specific delivery List
VL10G Documents due for delivery
LT0G Return delivery to stock
VL10A Sales Orders Due for delivery
VTLA Order to delivery copying control
VL04 Process delivery Due List
OVL2 Shipping Point Determination
LT10 Create Transfer Order from List
VL10C Order Items Due for delivery
VL10D Purchase Order Items due for delivery
OVL3 Picking Location Determination
0VLP Customizing/delivery item categories
VL01NO Create outbound Delivery w/o Order Ref.
VCH1 Create Batch Search Strategy
VL06 Delivery Monitor
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CONCLUSION:
SAP SD manage the complete vehicle order-to-delivery process, Manufacture and deliver
components. It Handle warranty claims with efficiency and accuracy and Enhance dealership
management. Manage relationship with customers and Partners. There will be better control on
receivables and credit control. A single unified database. Transparency in the process for suppliers
and payments status to suppliers through portal is achieved. Among other significant benefits
achieved by Tata motors is that there are quick and live options for competitive pricing. It is
helping Tata motors with negotiation power because all data of the world can be made availa ble
to Tata motors. Synchronize production scheduling with sales of product. It is helping Tata motors
with negotiation power because all data of the world can be made available to Tata motors for
Synchronize production scheduling with sales of product.
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Bibliography
Books
Ashok Faujdar, Sap Sales And Distribution Certification, Tata McGraw-Hill Education,
2008
Sales and Distribution in SAP ERP-Practical Guide, SAP PRESS, Matt Chudy, Luis
Castedo, Ricardo Lopez, Galileo Press New York, 2014
WEBSITES
SAP LEARNING HUB, VIEWED ON 20/1/2017,
https://training.sap.com/shop/app.php/access
SAP SD delivery process- tutorialspoint , viewed on 20/1/2017,
https://www.tutorialspoint.com /sap SD/sap_sd_delivery_processing.html
Tata motors, viewed on 20/1/2017, www.tatamotors.com
Function of delivery documents in SD process, viewed on 20/1/2017,http://www.sap-sd-
certification.com/
Transaction code, viewed on 20/1/2017,
http://www.tcodesearch.com/tcodes/search?q=outbound+delivery#ixzz4WhnWGSEQ
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