sales and distribution overview

- 1 -

Sales and distribution

OVERVIEW

- 2 -

AGENDA : SD sessions

SD Overview organizational entities

Order entry flow

Break

Distribution flow

Billing and reporting

End

- 3 -

Organizational entities

SHIPPING POINT A

COMPANY CODE

PLANT 1 …

SHIPPING POINT B

SHIPPING POINT C

SALES ORGANISATION

PLANT 2 …

SHIPPING POINT D

SHIPPING POINT E

PLANT 3 …

SHIPPING POINT F

STORAGE

LOCATION X…

STORAGE

LOCATION Z

- 4 -

Organizational entities

• Company codeIndependant accounting unitLegal entity

• Sales organisationResponsible for distributing goods and servicesResponsible for negotiating sales conditions

• PlantProduces goods, renders services, or makes goods available for distribution

• Storage locationPlace where stock is physically kept within a plant

• Shipping pointFix location that carries out shipping activities

- 5 -



Order entry flow

Break

Distribution flow


End

- 6 -

Overview processes in sales and distribution

SALESDebit memo request Order Returns Credit memo request

SHIPPINGDelivery Returns Delivery

Goods Issue

Shipment

BILLINGDebit memo Invoice Credit memo

FIN. ACCOUNTING - CONTROLLING Material Stock Account

PR

O

D

U

C

T

I

O

N

P

L

A

N

N

I

N

G Accounts receivable

M

A

T

E

R

I

A

L

S

M

A

N

A

G

E

M

E

N

T

- 7 -

Sales order entry

• Sales order creation based on master data– Customer

– Material see further for details

– Prices

• During creation, you have to enter– Sales organisation

– Customer

– Material and quantity

– Delivery date

and the rest is determined automatically in background

- 8 -

Sales order entry: background

• Credit check– Warning / block order

• Automatic pricing

• Availability control

• Creation documents (output)– Order confirmation– Use of texts from customer / material

• Incompletion check– payment terms– pricing– Taxes

- 9 -

Sales order entry : availability check

ATP

- 10 -

Sales order entry: header and item

customer

materials

Customer material number

- 11 -

Sales order entry: pricing

Price is determined automatically

- 12 -

Sales order entry: order confirmation

Delivery address

Article details Price details

- 13 -



Order entry flow

Distribution flow


End

- 14 -




Goods Issue

Shipment



PR

O

D

U

C

T

I

O

N

P

L

A

N

N

I

N


M

A

T

E

R

I

A

L

S

M

A

N

A

G

E

M

E

N

T

- 15 -

Delivery-Shipping Processing Overview

•Goods issue •Delivery note

Salesorder

•Picking

•Update stock•Post general ledger

Delivery

•Create delivery •Picking list•Sales order

- 16 -

Delivery creation

• Checking list: for which orders deliveries need to be created to deliver goods in time

• No more extra data need to be entered automatic creation

• Picking list is printed automatically:– When to get the goods and how much

– Add name of carrier and license number

– Add number and type of pallets

- 17 -

Output picking list

Name of carrier License number

Loading date

Materials

Pallets

- 18 -

Administrative update delivery

• Enter picking details in SAP

• Post goods issue

- 19 -

Output delivery note

• After goods issue, the delivery note is printed

- 20 -

Goods issue for deliveries

Posting goods issue :

automatically adapts stock levels

automatically adapts stock accounts

updates the status in all related sales documents and in the delivery document.

Reduces the requirements

automatically updates the billing due list

- 21 -



Order entry flow

Distribution flow


- 22 -




Goods Issue

Shipment



PR

O

D

U

C

T

I

O

N

P

L

A

N

N

I

N


M

A

T

E

R

I

A

L

S

M

A

N

A

G

E

M

E

N

T

- 23 -

Billing: invoice creation

- 24 -

Billing: effects of creating an invoice

Creating an invoice:automatically creates an accounting document that updates the general ledger account for revenue.

updates the status in all related sales, delivery, and billing documents.

updates the customer’s credit record.

updates sales statistics for the Sales Information System.

updates controlling elements such as profitability analysis and profit center accounting.

Sales Information System

A/R

X

Delivery

Sales order

Customer

Credit Record

Invoice

Profitability Analysis

- 25 -

Invoice

Payment terms

Details delivered goods

- 26 -

Document flow

Document flow of an order

Quotation. Order. . Delivery. . . Invoice. . Returns. . . Returns delivery. . . . Credit for returns

Returns

Order Delivery Invoice

Delivery Creditfor returns

Quotation

.

.

.

- 27 -

Customer analyses

Sales org billed qty billed value

0800 500 3000

Customer billed qty billed value

BELLO 300 1800 DIA 200 1200

Customer BELLO

Month billed qty billed value

Feb 05 100 600Mar 05 200 1200

Drill downby customer

Drill downby period

Functions-Drill down-Filters-ABC Analysis-Graphics-…

AdditionalInformation

-Material master-Customer master-Documents

Reporting: sales information system

… and lots of other possibilities to report and analyse data

- 28 -


Example flow in SAP

Master data

Intercompany flow

Transportation

- 29 -

Sales order entry

- 30 -

Sales order entry

- 31 -

Sales order entry – ship-to

- 32 -

Sales order entry

- 33 -

Sales order entry - pricing

- 34 -

Sales order entry - pricing

- 35 -

Output order acknowledgement

- 36 -

Delivery creation

- 37 -

Delivery creation: materials

- 38 -

Delivery creation: batches per material

- 39 -

Delivery scheduling

- 40 -

Output pick list

- 41 -

Delivery processing

- 42 -

Delivery processing

- 43 -

Output delivery note

- 44 -

Billing

- 45 -

Billing

- 46 -

Output invoice

- 47 -


Example flow in SAP

Master data

Intercompany flow

Transportation

End

- 48 -

Master data: overview

• Customer master data

• Material master data

• Different price types

- 49 -

Master data customer: business partners

• Different types of business partners– Sold-to partyPlaces the sales order

– Ship-to partyReceives the goods

– Bill-to partyReceives and verifies the invoices

– Payer

Pays the invoices

- 50 -

Master data customer: kind of data

•General data–Name–Address–VAT number–Telephone number

•Company code data–Payment terms –Reconciliation account

•Sales area data –Sales district–Customer group–Incoterms–Business partners

Customer

Sales area data

Customer

Company code data

Customer

General data

- 51 -

Master data material

Integrates data from

- Manufacturing

- Sales and distribution

- Purchasing

- Accounting

- …

- 52 -

Master data prices: determination price

• Price procedure linked to order type

• Price procedure consist of different condition types:– Sales price

– Discount

– Surcharge

– …

• Each condition type has different levels: access sequence level

• Data about conditions are stored in condition records

Prices are called condition records in SAP

- 53 -

Master data upload

• Special templates for upload– Business partners

– Prices

– Scales for prices

• Optional, mandatory and default fields

• Certain checks already build in– Example: lenght postal code

• Examples: see excel sheets

- 54 -


Example flow in SAP

Master data

Intercompany flow

Transportation

- 55 -

Intercompany

IC customer IC vendor

Purchase Order

10

20

Stock transport

Order (Planned order)

MRP

DeliveryDue List

EA C D

B

DeliveryTransport planning

Picking

Goods issueE

A C D

B

Goods receipt

Invoice

receipt

EDIIC

Invoice

- 56 -


Example flow in SAP

Master data

Intercompany flow

Transportation

End

- 57 -

Transportation : Objective

= Assign transport costs to outgoing logistical flows

• integrated profitability analysis

• analysis on customer, organisational or product level (MIS)

• tool for invoice checking

- 58 -

Transportation : Principles

• Shipments = group of deliveries loaded on one truck.

• Shipments serve as a basis for a shipment cost document.

• Shipment costs are calculated using transport price conditions, maintained in the system.

• Shipment costs will be transfered as provisions on transport purchase orders, which are used for transport invoice checking and registration.

- 59 -

Transportation : Diagram (1)

Order

Delivery

Invoice

Shipment

Shipment Cost

Transport Conditions

Transp. Purch. Order TransportInvoices

- 60 -


Order

Delivery

Invoice

Shipment

Shipment Cost


Transp. Purch. Order TransportInvoices

SD

MM

TRANS

- 61 -

Transportation : Background creation of shipments and shipment costs

Shipments and shipment costs plus transfer to transport purchase orders are created automatically by a daily backgroud job running at night.

• 4 transport categories: Ex works, Customer, Intercompany and Intracompany transports.

• Posted deliveries are daily grouped into shipments per carrier, shipping point and transport ID.

• Delivery must include all essential information : ship-to, incoterm, carrier, transport ID.

- 62 -


Order

Delivery

Invoice

- Ship-to- Carrier- Shipping point- Transport ID- Incoterm

Shipment

Inter Cust Intra Exw

Shipment Cost

Inter Cust Intra


Transp. Purch. Order

Inter Cust IntraTransportInvoices

SD

MM

TRANS

- 63 -

Transportation : Transport purchase orders

• Validity period = month

• Tranport purchase orders for the coming month are created at the end of the current month.

• Creation by means of a special transaction, based on a text file, which can be reused every month.

• Closed monthly but invoice registration remains possible.

- 64 -

Transportation : Transport conditions

According to meet different ways of transport pricing (fix, per CU, per Kg, ...) , there are :

• different pricing conditions, • having different calculation bases (shipment, delivery based), • which can be set up at different (geographical) levels (customer, department country). • Both pricing conditions and level are called upon by a search strategy working with priorities.

- 65 -

Transportation : Transport conditions

- 66 -

Transportation : Follow up

Daily follow up control reports:

• all deliveries in a shipment?• all shipments costed?• shipment cost correctness• shipment cost transfer• provisioned transport costs vs received invoices

Manual creation/modification possible

- 67 -

Questions

- 68 -

Questions