sales & distribution training overview

An Overview on Sales & Distribution

Agenda

Enterprise Structure

Master Data

Pre sales activity

Sales activity

Business Scenarios

Special Business Scenarios

Customer complains

Scenario wise test scripts

Evaluation

Sales & Distribution

- Organizational Structures -

Sales Organization

BaseballDivision

BB

SoftballDivision

SB

DirectDistribution Channel

DI

BaseballDivision

BB

SoftballDivision

SB

WholesaleDistribution Channel

WH

BaseballDivision

BB

SoftballDivision

SB

RetailDistribution Channel

RE

Domestic SalesSales Organization

So00

BaseballDivision

BB

CricketDivision

SB


WH

EuropeSales Organization

EURO

BaseballDivision

BB


WH

Asia PacificSales Organization

APAC

Pastime CorporationCompany Code

CC00

Client860

Sales Organization Sells and distributes products, negotiates

terms of sales and is responsible for these business transactions

Critical organization element to the definition of business markets

A business transaction is linked to one Sales Organization

Distribution Channel

Identifies how products and services reach the customer

Can be assigned to one or more Sales Organizations

Division Often times used to define product line

distribution Organization level to which customer

specific information and requirements are maintained — e.g. pricing, partial delivery

Assigned to one or more Sales Organizations

Sales Area Organizational element comprised of:

Sales Organization Distribution Channel Division

Will be used to link together the organizational aspects of sales to customers

Used for statistical analysis

Sales Area

Domestic SalesSales Organization

SO00

DirectDistribution Channel

DI


WH

RetailDistribution Channel

RE

BaseballDivision

BB

SoftballDivision

SB

BaseballDivision

BB

SoftballDivision

SB

BaseballDivision

BB

SoftballDivision

SB

Sales Office

Typically defines a territory or market area

Linked to one or more Sales Areas Optional organization structure

Internal Sales Organization

Domestic Sales Area

WesternSales Office

EasternSales Office

Sales Group

Sales Group Sub-division of a sales office, territory or

market

Sales Person

Sales Person Defined in HR — Personnel Admin. Specifically defines an individual rather than a

position (sales rep.) in sales processing

Internal Sales Organization

DomesticSales Area

Western Sales Office

Eastern Sales Office

SouthwestSales Group

NorthwestSales Group

Sales Person

Sales Person

Sales Person

SoutheastSales Group

NortheastSales Group

Sales Person

Sales Person

Enterprise Structure

FICO SD MM

LEpp

Company Company code Credit control area Business area

Sales organization Distribution channel Division Sales office Sales group

Purchase Org

Storage location

Shipping point Loading point

Plant Division

Purchase Org

Document

Organizational Units in Sales and Distribution

RR // 33ll Company codeCompany code

ll Sales AreaSales Area

èè Sales organizationSales organization

èè DistributionDistribution channel channel

èè DivisionDivision

ll SitePlant

ll Storage locationStorage location

ll shipping pointShipping point

Client

The client is the highest entity of a SAP-System

The client is in commercial, organizational, and technical in terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.

Company Code

The company code is a self-balancing unit inside a client

A client can include several company codes.

A client can e.g. be a organisation within a company or a subsidiary.

Accounting data and valuation data will be stored on company code level.

SD-Enterprise Structure Sales Organization Distribution Channel Division Sales office Sales Group

Sales Organisation

The sales organisation divides an enterprise in the demand of the sales.

The sales organisation is responsible for the sales of materials and services.

The sales organisation is divided in distribution channels and divisions.

Each sales organisation has its own entry range.

One sales organisation can be attached to different factories.

Distribution Chanel & Division

The way products reach to the customer Ex ,wholesales ,Retails ,direct sales .

Represents a product line The group of product will make one division

for example : motorcycles, spare parts, service

Plant

A plant is an organisational unit to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects.

A plant is a place where either materials are produced or goods and services provided.

To this data, which are storded on plant level, there are also MRP-Data, Work Plans and BOM‘s.

Purchasing Organisation

The purchasing organisation is responsible for the provision of materials and services.

The purchasing organisation negotiates with the provider such as vendors

The following types of purchasing organisations are possible: There is only one single purchasing organisation

responsible for the whole enterprise . Each entry range has its own purchasing

organisation. Each factory has its own purchasing organisation

Storage Location

Every storage location belongs to one plant. A storage location aallowing the differentiation

of material stocks within a plant. Physical inventory takes place at storage

location level. A storage area that can be defined for a

warehouse in the Warehouse Management (WM) system and can

be subdivided in: Storage Number Storage Type Storage Place

SD: Structure for Sales Order Processing

January 2007 (v1.0) The Rushmore Group, LLC 27

Client 410

Company CodeC100

Plant P100 Plant P101

Sales Area

Sales OrgS100

DistributionChannel (RE)

Division(01)

2 Retail trade

2 Motorcycles 3 Computers 3 Computers

5 Internet

2 Cologne

1 Pumps

1 Wholesale trade

2 Motorcycles

122

123

153

212

2

1 Munich

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Sales AreaSales Organization

Distribution Channel

Division

Sales Area

Sales area : Combination of sales organization, distribution channel & Division .

Master Data

Material data The material data contains all necessary information for the administration of the materials.

Customer- Master data Here all data are filed which are necessary for the business relations to the customer.

Vendor- Master data Here all data are filed which are necessary for the business relations to the vendor

SD: Master Data

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Customer Master Data

Material Master Data

Cust/Mat Info Record

Output Master Data

Condition Master Data

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

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SD: Customer Master Data

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• The customer master information is divided into 3 areas:– General Data– Company Code Data– Sales Area Data

SD: Customer Master

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Company Code 102Company Code 101

Company Code 100

Client 410

Sales Org. 101Sales Org. 100

General Information relevant for the entire organization: Name Address Communication

Company Code specific information: Acc. Mgmt

Payment Bank

Sales Area specific information: Sales Office Currency

Business Partners

Ship-to Party

Bill-to Party

Payer

Other

Sold-to Party

PartnerFunction

Master Data: Customer Master

SD: Material 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

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SD: Material Master Views

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Material Master

Basic Data

Sales Data

Controlling Data

Forecasting Data

Purchasing Data

Mat. Plan. Data

Accounting Data

Storage Data

Quality Data

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

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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

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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

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SALES & DISTRIBUTIONSALES

40

Sales Order Process

Sales: The Process

41

Sales OrderEntry

Post Goods Issue

Invoice Customer

Pick Materials

Receipt ofCustomer Payment

Pack Materials

Check Availability

Pre-salesActivities

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Sales Flow

Pre-Sales Activity

Sales Order Delivery Billing

General Ledger Accounts

AccountsReceivable

Documents in SD This slide represents the relationship between the processes in sales order processing in the SAP System. The sequence from top to bottom represents the order of events in the sales process.

Sales Processes

SD Process: Inquiry -VA11

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.

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SD Process: Quotation-VA21

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.

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SD Process: Sales Order-VA01

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

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Sales Order: Delivery Scheduling-VL01N

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.

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Sales Order: Backward Scheduling

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RequestedDelv. Date

GoodsIssueLoading

MaterialAvailability

OrderDate

Transp.Sched.

TransitTime(2 days)

LoadingTime(1 day)

Pick & PackTime (2 days)

Transp.Sched.Time(1 day)

2nd 3rd 4th 5th 6th1st

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.

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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

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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.

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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.

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SD Process: Shipping

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OrderCombination

Sales Order 1

Sales Order 2

Sales Order 3

Delivery 8…12

PartialDelivery

Sales Order 4

Delivery 8…13

Delivery 8…14

Delivery 8…15

CompleteDelivery

Sales Order 5

Delivery 8…16

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SD4: Schedule delivery and create Delivery notes

Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities Integrated with the Material Management (MM) and

Finance (FI) modules

Picking

Packing

Loading

Post Goods Issue

Delivery Note

Each step in the delivery process updates the delivery note status

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)

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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

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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

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SD Process: Billing-VF01

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.

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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.

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SD Process: Billing Methods

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Collective Invoicing

Delivery based Invoicing

Delivery 8…34

Delivery 8…33

Order 14

Order 9

Delivery 8…56

Invoice 9…68

Order 6Delivery 8…20

Delivery 8…21

Invoice 9…45

Invoice 9…46

SplitInvoicing Order 32 Delivery 8…86

Invoice 9…92

Invoice 9…91

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.

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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).

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SPRO-Front end to back end (User to configuration screen)

/N-back to sap-easy access /O-Open a new window SPRO/IMG-To enter configuration screen

SAP LOG ON

SAP Logon.lnk

Master Data in SAP

Create Material Data Transactionscode: MM01 Change Material Data Transactionscode: MM02 Display Material Data Transactionscode: MM03 ......................................................................................................

..... Create Customer Data Transactionscode: XD01 Change Customer Data Transactionscode: XD02 Display Customer Data Transactionscode: XD03 ...................................................................................................... Create Vendor Data Transactionscode: XK01 Change Vendor Data Transactionscode: XK02 Display Vendor Data Transactionscode: XK03

Create condition master Transactionscode:VK11 Change condition master Transactionscode: VK12 Display condition master Transactionscode: VK13 ............................................................................................

........

Create customer material inforecord VD51 Change customer material inforecordVD52 Display customer material inforecord VD53 ............................................................................................

..............

Create Out put condition master VV11 Change Out put condition master VV12 Display Out put condition master VV13

SAP-TcodesT-codes

Inquiry Quotation Order Delivery Billing VA11 –Create inquiry , va12 change inquiry , VA13 display inquiry VA21 -Create Quotation ,VA22 -Change Quotation, va23 display quotation VA41 -Create Contract, VA42 Change contract , VA43 Display contract.VA01 -Create Sales Order ,VA02 - Change Sales Order ,VA03 -Display Sales Order,VA05 –Blocking /unblocking sales orderDeliveryVL01N –Create delivery ,VL02n –change/PGI ,VL03N –display VL04 - Collective processing of delivery Billing VF01-Create Billing Document,VF02-Change Billing DocumentVF04-Maintain Billing Due List VF03-Display Billing DocumentVF11-Cancel Billing Document

Thank you

Satyabrata patra

sales & distribution training overview

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