**.

Enterprise Resources Planning*

Evolution of ERP1960s: Inventory Control 1970s: Material Requirement Planning (MRP) 1980s: Manufacturing Resources Planning (MRP-II) 1990s: Enterprise Resource Planning (ERP)

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1960s Inventory Management & Control

combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. identifying inventory requirementssetting targetsproviding replenishment techniques and options monitoring item usages, reconciling the inventory balances, and reporting inventory status. *

1970s Material Requirement Planning (MRP) software applications for scheduling production processes. schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation. *

1980s Material Requirement Planning (MRP II) Manufacturing Requirements Planning or MRP II utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution Greater reductions due to the integration of production & Inventory with accounting and HR. *

1990s Enterprise Resource Planning (ERP)

Multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources. *

EnterpriseWhere a transaction takes place.

Where customers get the satisfaction.

Where the resources are available for the peoples needs.*

Why an ERP1. Reduction of organizations operating costs2. integrates all parts of an organization 3. Integration Increases the efficiency of operations 4. Integration of information systems enables seamless flow of information across the organization. 5. Enables consolidation of different software in the organization 6. Helps in better customer service *

ResourcesMoney

Men

Machines

Materials*

PlanningProper Planning and Optimization of the valuable resources make enterprise run into profits. A Software Solution that addresses the ENTERPRISE NEEDS taking the PROCESS VIEW of an organization to meet the ORGANIZATIONAL GOALS tightly INTEGRATING all functions of an enterprise. Def of ERP*

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ERP for ManagersEffective communicationBetter decision makingBusiness process re-engineering help to reduce confusion and conflict.Tailor-made feedback on any issue.Provides information on any stage of a business process*

SAPMRP II 1972ERP with R/2 architecture 1980sERP with R/3 Architecture 1992mySAP in 2005

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Problems Tackled by ERP SystemsMaterial Shortages Productivity EnhancementsCustomer ServiceCash ManagementInventory ProblemsQuality Problems

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ERP ProductsSAPBAANOracle APPSPeople SoftJD EdwardsMarshallEtc..*

Domain Share Of SAP*

SAP & CompetitorsSAP R/3 had competition with Software giants like Oracle Corp, People Soft & Bann. Oracle with its E-biz suit packed to excel with 142 modules.People Soft with its extra ordinary performance in HR has stormed the market. But finally failed to gain the confidence of Big Enterprises. Result is SAP Has become giant in ERP.*

Few SAP CustomersIBMCOMPAQHewlett PackardAMDBoeingMercedezToyotaLucentHitachiNikeTATAsDr.Reddys LabsRanbaxyL& TReliance IndustriesGlaxoMahindra & MahindraHero HondaGrowelColgate Palmolive

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Consulting CompaniesPrice Water House Coopers.KPMG.Siemens.Delloitte.Accenture.Cap Gemini.IntelliGroupTCS.*

SAP R/3 What is all aboutSystems Applications & Products in Data Processing*

FI/CO (Finance & Controlling) S & D (Sales & Distribution) HR (Human Resource) MM (Material Management) PP (Production Planning) PS (Project Systems) QM (Quality Management)PM (Plant Maintenance)

ABAP/4Advanced BusinessApplication ProgrammingCACross ApplicationsBASISBusiness ApplicationSoftware Integrated SolutionsBW, APO, CRM, SRM, SEM, SCM,.. AdvancedERP -2 ProductsEP, XI, Net weaver,.. *

SAP AG in 2011revenues: 6,520 million 60,100 installations 19,300 companies run SAP Providing 23 Industry Solutions 28,654 SAP employees (March 2003)12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership More than 1,500 partners

THE SAP COMPANY*

SAP Milestones over 30 years*

The SAP World*

SAP R/3 Customer Installations by Industry SAP HIGH TECH & ELECTRONICS 11.3% SAP CHEMICALS 9.5%SAP CONSUMER PRODUCTS 10.3% Consulting & Professional Services 6.0% SAP RETAIL 6.3%SAP PHARMA -CEUTICALS 3.4%SAP PUBLIC SECTOR 3.4%SAP OIL & GAS 3.2%Metal, Paper & Wood Products 2.8%Services 3.1%SAP HEALTHCARE 2.3%SAP BANKING 2.0%SAP MEDIA 2.3%Others 11.5%SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8%SAP TELECOM- MUNICATIONS 3.4% *

Industry Solutions *

Aerospace and DefenseApparel and FootwearAutomotiveChemicalsConsumer ProductsTrade Promotion ManagementKey Account ManagementDistributor Reseller ManagementFinancial ServicesBankingInsurancesCollections and DisbursementIncentives & Commission ManagementClaims ManagementAsset & Liabilities ManagementFinancial Service Provider

HealthcareHigh TechMediaOil&GasPharmaceuticalsPublic SectorReal EstateRetailAgency BusinessCategory ManagementStore ManagementService ProvidersTelco

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The SAP R/3 ArchitectureSAP R/3 works on Three Tier Architecture

User TerminalApplication ServerDatabase ServerData CreationModificationRetrieval Managing User RequestsData Storage*

3-Tier Client/Server Architecture *

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SAP - characteristicsHighly Integrated solution covering entire business processesTechnically capable of utilizing the network infrastructureOpen system to ensure freedom to choose Provides multiple ways of configuring business processes Solutions in areas where currently no systemsWorkflow enabled business processes Enables to exploit the power of Intranet and Internet

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Common SAP objectivesCost Control & increased profitabilityIncreased productivity of all resources man, material & moneyProcess StandardizationTransparency in operations, resulting in better communicationShift from post-mortem scenario to predictive scenario

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Results of IntegrationFocus on Business ProcessesElimination of Redundant Data (Common Constant Data)Easier Corporate ConsolidationBetter Managerial Control Elimination of InterfacesFaster reaction to changing structures*

Success factors for SAP implementationTop Management Commitment & communication down-the-lineEmpowermentChange managementTrainingCompliance to methodology*

SAP IMPLEMENTATION - PHASESProject PlanningBusiness Process Study & AnalysisInstallation TrainingBusiness Requirement mapping ConfigurationModifications / InterfacesData ConversionDocumentationTestingGo-LivePost production support

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Implementation Methodology*

SAP TYPICAL BLUE PRINT*

SALES AND DISTRIBUTION*

Final Payment*

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SDMechanisms to execute the business processes used in the selling, shipping and billing of products and services

Tightly coupled data flow to the other SAP modules Integration

Flexible and robust functionality that is tailored through configuration*

GENERAL SETTINGSCOUNTRYCURRENCYTIME ZONECALENDERUNITS OF MEASUREBASESALEDELIVERYFACTORYVENDORCUSTOMER*

ORGANIZATION STRUCTURECOMPANYCOMPANY-CODEPLANTSHPNG PTP.ORGNP.GRPSALES ORGNDIS CHNLDIVISIONSALES OFFSALES GRPSALES ORGN+DIST CHNLEMPEMPCNTRL AREACREDIT CNTRL AREASALES AREA*

Sales OrganizationSells and distributes products, negotiates terms of sales and is responsible for these business transactionsCritical organization element to the definition of business marketsA business transaction is linked to one Sales Organization*

Distribution ChannelIdentifies how products and services reach the customerCan be assigned to one or more Sales Organizations*

DivisionOften times used to define product line distributionOrganization level to which customer specific information and requirements are maintained e.g. pricing, partial deliveryAssigned to one or more Sales Organizations*

Sales AreaOrganizational element comprised of: Sales OrganizationDistribution ChannelDivisionWill be used to link together the organizational aspects of sales to customersUsed for statistical analysis*

Sales Area*

Sales OfficeTypically defines a territory or market areaLinked to one or more Sales AreasOptional organization structure*

Sales GroupSales GroupSub-division of a sales office, territory or market*

Sales PersonSales PersonDefined in HR Personnel Admin.Specifically defines an individual rather than a position (sales rep.) in sales processing*

Shipping Point & Loading PointShipping PointLocation that performs all delivery related activitiesAssigned a factory calendarA delivery can be processed from only one shipping pointLoading PointA subdivision of the shipping point used for more specialized handling*

MasterDataCustomerMaterialPricing*

Customer Master RecordMaterial Master RecordCMIRCondition MasterOutput Materdata

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-General DataBasic Unit of MeasureDivisionMaterial GroupSales UnitDelivering PlantCash discount-Tax dataCountryTax categoryTax classification-Quantity stipulationsMin. order quantityMin. delivery quantityDelivery unit

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*Industry Sector:1Retail2Aerospace & Defense3Service ProviderAPlant Engin./ConstructionBBeverageCChemical IndustryFFood and Related ProductsMMechanical EngineeringPPharmaceuticalsTTelecommunicationWRetailing

Material Type:

*FERTFinished productROHRaw materialHAWATrading goodsKMATConfigurable material

Base Unit of MeasureThe Base Unit of Measure is the unit of measure in which stocks are managed within your company.DivisionYou may enter the Division which your product is in for sales (defaults if entered in the Basic data screen).Material GroupA (freely definable) key thats used to group several materials or services for analysis/reporting as well as search by match code.Sales UnitThis is the unit of measure in which the material is sold, if different from the base unit of measure.Delivering PlantPlant, from which the material is available for sale. This is a default value only.Cash discountIndicator used for materials, which allow for a cash discount.*

Tax dataCountryCountryTax categoryTaxes, applicable to this material (e.g. Federal, State taxes in US, VAT in GB)Tax classificationtaxable, exempt

Quantity stipulationsMin. order quantityMin. quantity a customer can order (in base unit of measure).Min. delivery quantityMin. delivery quantity to a customer.Delivery unitOnly multiples of this number will be delivered to the customer.

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-Grouping termsMatl statistics groupMaterial pricing grpVolume rebate groupAcct assignment grpCommission groupItem Category group

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Matl statistics groupHelps to determine which data the system updates in the Logistics Information System (LIS).Material pricing grpA way to group materials with similar pricing conditions. Volume rebate groupA material can be assigned to a volume rebate group (e.g. Low Rebate, High Rebate) if the material qualifies for rebate.Acct assignment grpA grouping of materials with the same accounting requirements (used to determine revenue and sales deduction accounts)Commission groupSeveral materials can be assigned to the same commission group, if the commission sharing between representatives is the same for these materials (e.g. Rep.A: 6%, Rep.B: 10%, Rep C: 12%). Item Category groupA grouping of materials, that helps the system determine the Item Category. Item Category determines how a specific item is processed by system. E.g. a text item is not relevant for pricing.

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General dataBase unitGross weightNet weightAvail. CheckShipping data (times in days)Trans. GrpLoadingGrpPackaging material dataMatl grp ship. matlsGeneral plant parametersNegative stock

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General dataBase unitThe Base Unit of Measure is the unit of measure in which stocks are managed within your company.Gross weightIn Base Units of Measure.Net weightIn Base Units of Measure.Avail. CheckTells the system when to do an availability check, as well as which MRP elements (such as purchase orders, reservations) to include in the check.Shipping data (times in days)Trans. GrpTransportation groups are groups of materials that have the same transportation requirements. For example, all goods that need refrigeration.Loading GrpLoading groups define materials that have the same loading requirements, such as forklift truck, or crane.

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Packaging material dataMatl grp ship. matls, orMaterial group shipping materialsFreely definable group name, which is used to indicate groups of materials with similar shipping materials, such as liquids or bulk, for example.General plant parametersNegative stockCheck mark indicator, which specifies whether negative stock is allowed at that plant.

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- Sales textsText specific to the material and in an appropriate language.

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Sales & Distribution- Customer Master -*

Account GroupsAccount group determines which fields are to be used in defining customer master data

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Field StatusField status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display onlyField status controls are also relevant to a specific activity create, change, or display*

Customer Master*

Customer MasterCentralized data for both SD & FISegmented into three sectionsGeneral data - address & communicationCompany code data (FI) - banking and payment information related to FISales data (SD) - pricing, delivery, outputThe sales data is specific to one sales area and is therefore dependent on the sales organization *

Customer Master by Sales AreaCustomerSales Organization Distribution ChannelDivision*

General Data AddressCustomer Name

Search Term

Street address, City,Postal code, Country

Language

General Data Communication

Telephone, Fax, Data numbers

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General data Control data

Account control : Vendor, Authorization Trading partner, Group key

Tax information : Tax codes, Fiscal address Country code, City codeVAT N, Tax jurisdiction codeEqualization tax, Sole proprietorTax on sls/pur.Reference data / area :International Locator No.

Industry:Transport ZoneExpress stationTrain station Location code*

General Data MarketingClassification : Nielsen ID Customer classification IndustryIndustry codes Operating figures : Annual salesNumber of employees Fiscal year variant

Sales prospecting : Legal status*

General Data Payment TransactionsBank detailsCountry Bank KeyAccount holderBank AccountControl KeyCollection

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General Data Unloading pointsUnloading point

Customer factory calendar

Default Unloading Point

Goods receiving hours*

General Data Foreign tradeCountry key for export control of customerTable of Denial Orders list (TDO)

Special Designated Nationals list (SDN)

Diversion High Risk Profile list (DHRP)

Usage and Classification*

General Data Contact personsName

Telephone number

Department

First name

Form of address (e.g. Mr., Ms.)

Function*

Accounting info Reconciliation Account Sort key Head office

Interest calculation Interest indicator Interest calculation frequency Last key date

Reference data Buying groupCompany Code Data Accounting Information*

Company Code Data Payment TransactionsPayment data: Payment terms Tolerance group

Automatic Payment Transactions:Payment methodsAlternative payerLockbox*

Company Code Data CorrespondenceDunning data :Dunning procedureDunning recipient

Correspondence :Account numberat customerCustomer user

Paymentnotices to :CustomerSalesAccountingLegal*

Company Code Data InsuranceExport creditinsurance :Policy numberInstitution numberAmount insuredValid untilLead monthsDeductible*

Sales Data Sales areaSales order :Sales districtSales officeSales groupOrder probabilityItem proposalAccount at customerPricing /Statistics:Price groupCustomer pricing procedurePrice list typeCustomer statistical group*

S & D Data ShippingShipping : Delivery priorityShipping conditionsDelivering plantOrder combinationBatch split allowed

Partial Delivery:Complete deliveryPartial delivery of itemMaximum part deliveries*

S&D Data BillingBilling section :Manual invoice maint.RebatePricingBilling scheduleInvoice list schedule

Delivery andpayment terms :IncotermsPayment terms

Accounting :Account assignment group

Taxes: Tax requirements for the customer*

S&D Data Partner functionsThe different partners are assigned

SPSold-to-party BP Bill-to-party PY Payer SH Ship-to-party additional Partner function(s)

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Assigning Additional Partners Siesta Baseball League - Vera Cruz, NM Sold-to: 10018Bill-to: 10018Payer: 10018Ship-to: 10018 Siesta Baseball League - Vera Cruz, NM Sold-to: 10018Bill-to: 10018Payer: 10018Ship-to: 10018Ship-to: 10249 - Bakersfield, CASold-toPayerShip-toBill-toShip-to*

Sales & Distribution- Business Partners -*

Business PartnersDefines all of the parties involved in a business transaction and differentiates between their roles customer, carrier, employees, customer contact, etc.Through customizing the system automatically assigns partners to the customer master and to transactions*

Business PartnersThe system creates these four business partners by default. All four are required.

All four may be the same or may be different.

Since these are automatically assigned partners you may need to add additional partners to carry out your business transactions.*

Business partners Sold-toCustomer that orders the goodsCan perform all primary partner functions sold-to, ship-to, payer, bill-toPrimary type of business partnerCannot be linked to other sold-to partnersSold-toShip-toBill-toPayer*

Business partners Ship-toParty that receives the goodsCan be created as an independent partner and linked to one or more sold-to partners Sold-toShip-toBill-toPayer*

Business partners Bill-toParty that receives the invoiceCan be created as an independent partner and linked to one or more sold-to partnersSold-toShip-toBill-toPayer*

Business partners PayerParty that sends the paymentCan be created as an independent partner and linked to one or more sold-to partnersSold-toShip-toBill-toPayer*

Sold-toBill-toPayerSold-to*

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TERMINOLOGYPartner determination procedurePartner functionsAccount GroupPartner typeError groupSequence

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Set up Partner DeterminationFor Customer MasterFor Sales Document HeaderFor Sales Document ItemFor DeliveryFor ShipmentFor Billing HeaderFor Billing ItemFor Sales Activities (CAS)*

Business relationships*

Partner types*

Customer Material Info. Record Item Proposal Listing & Exclusion Product Substitution*

Customer/Material Info. RecordDefines a customer alias for a material & description, for example: Material # : GloveCustomer # : Pastime GloveCan further define attributes of the material, shipping and partial delivery information specific to the product and customerReferenced in the sales order using the Ordering Party overview*

Item ProposalUsed to define frequently ordered combinations or special assortments of products and quantitiesEither products or products with quantities can be selected during order entryAn item proposal can be defined for a customer via the customer master record*

Material Listing & ExclusionUsed to control what products are available for a customer or groupMaterial Listing defines products that can be sold to a customerMaterial Exclusion defines products that cannot be sold to a customer*

Product Substitution Material DeterminationEnables automatic or manual substitution of materials during sales order processingExamples: substitute a standard product with a promotional materialsubstitute based on a customer preferencesubstitute based on selection list (manual)*

SALES CYCLEINQUIRY

QUOTATION

ORDER

DELIVERY PGI

BILLLING

REL TO ACCOUNTS

INVENTORY ACCOUNTSCONTRACTSSCHEDULINGAGREEMNETS*

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Sales ActivityInquiryQuotationDelivery FreeOfChargeSales OrderReturnsDeliveryCreditMemoInvoiceDebitMemoS A L E S I N F O R M A T I O N S Y S T E MM A T E R I A L S M A N A G E M E N TFINANCIAL ACCOUNTINGSales SupportSalesShippingBilling SALES ORDER PROCESS*

*ORDER TO CASH PROCESSSD O 2C

SALES DOCUMENTS Inquiry

Quotation

Sales Order

Delivery Free of Charge (Sample Goods)

Returns (Customer Complaints / Damages)*

REFERENCE DOCUMENTS*

INQUIRY & QUOTATION

A customer or prospect may submit an inquiry to ascertain whether you stock a certain product, what that product costs, and whether it is available by a certain deadline. The inquiry represents a request for a sales quotation from the customer.

A quotation is a legally binding offer to the customer to deliver materials or perform services on the basis of fixed conditions.

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SALES ORDERA customer request to the company for the delivery of goods or services at a certain time

A sales order consists of one or several items containing the quantity of the material or service specified for the order.

The total quantity can be subdivided into schedule lines, which contain different partial quantities and the relevant delivery dates.

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SALES ORDERSales orders follows the purchase order from the customerItem availability check is done and shipping pointIs determined for delivery scheduling*

RETURNSComplaints and returns functions are used when customers want to return goods that are damaged or goods that were sent on a trial basis. You can also use complaints functionality if the wrong goods were delivered or if the delivery quantities and prices were incorrect.

Sales documents for processing complaints are Free of charge delivery, Returns & Credit and debit memo requests

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RETURNS DOCUMENT*

CREDIT / DEBIT MEMO*

INVOICE CORRECTION REQUEST*

Sales & Distribution- Transactions -*

InquiryCredit MemoReturnsQuotationSales OrderCash SaleRush OrderConsignmentContractSchedulingAgreementDebit MemoReturnablePackaging*

ITEM CATEGEORY FUNCTIONS*

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ITEM CATEGEORY GROUP*

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ITEM CATEGEORIES*

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ITEM CATEGEORY DETERMINATION IN SALES ORDER*

Copy control*

PricingWorld-class functionalityHighly customizable & extendibleOne of the most complex features of SAPUsed to determine the net price for a material or an order*

Pricing Work Flow*

Pricing ComponentsPricing is based on a matrix of predefined and custom elementsDelivered element groups (a.k.a. conditions)PricesDiscounts & SurchargesFreightTaxes*

Pricing ProcedureIn short, the mechanism used to arrive at the final priceConsiders all of the applicable pricing conditions, e.g. material price, customer discountIs assigned by: sales area, sold-to party and sales document type (e.g. sales order)*

Pricing ProcedureThe pricing procedure uses what SAP calls the condition technique. The pricing condition technique starts with the:Pricing Procedure which looks at Conditions which useAccess Sequences which accessesCondition tables which point toA price, discount or other condition ($)

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R/3 Pricing ProcessUNIFORM*

Configuration of Pricing*

Menu path : IMG>SALES & DISTRIBUTION>BASIC FUNCTIONS>PRICING *

Double Click to View field catalogue*

FIELD CATALOGUE PRICING SD*

CREATION OF CONDITION TABLE1-500 SYSTEM DEFINED501-999 USER DEFINED Condition table: contains combination of key fields that form the basis for condition records718*

718*

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Access sequence: It is sequential placing of condition tables in a logical order to obtain condition record.*

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TRANSACTION CODE:V/03*

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TRANSACTION CODE:V/08*

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TRANSACTION CODE:V/08*

Customer pricing procedure:This can be used to differentiate the pricing procedure customer wise.

This is linked with Customer master record. *

Document pricing procedure:This can be used to differentiate the pricing procedure based on Sales document.

This is linked with DPP in Document maintenance.*

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Pricing Procedure Determination*

T. CODE:OVKK*

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Maintain Condition records*

Key combination: This is for fixing the values in records.

This dependent on the no.of tables in the access sequence. T. CODE:VK11*

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Now..Verify the effectIn Sales Order*

T. CODE:VA01DC to goto Conditions tab page*

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Price AgreementsSimple price agreementsproductcustomercustomer & materialcustomer group & materialDetailed price agreementspricing scalesrebatescustomer expected price*

Order Processing FunctionalityDelivery schedulingAvailability checkTransfer of requirements to MRPPricingCredit checkShipping point & route determinationForeign trade & license processingDocument flow*

Delivery SchedulingAutomatic scheduling of essential shipping activities ... Calculated using defined activity times ...Resulting in scheduled activity dates Determined using backward and forward scheduling rules*

Delivery SchedulingStructure of sales documentsHeaderLine item # 1Line Item # 2Schedule line # 1Schedule line # 1Schedule line # 2*

Delivery Scheduling TerminologyTransportation lead time time required to schedule transportationPick/Pack time time required for picking and packingLoad time time required to loadTransit time time required to transport goods from shipping point to ship-to*

RequestedDelv. DateGoodsIssueLoadingMaterialAvailabilityOrderDateTransp.Sched.TransitTime(2 days)LoadingTime(1 day)Pick & PackTime (2 days)Transp.Sched.Time(1 day)25*

OrderDateTransitTime(2 days)LoadingTime(1 day)Transp.Sched.Time(1 day)NewDelv. Date27th27th28th29th31st26th271*

Availability CheckDetermines the material availability dateConsiders inward and outward movement of inventory customizableInfluences partial deliveries byproposing a quantity that can be delivered on the requested date (complete delivery)determines the earliest date for full deliverydetermines the number and dates for partial deliveries to fulfill the order *

Availability CheckIn determining the material availability date the system can include specific stocks if selected, such as:Safety stockStock in transferQuality inspection stockBlocked stockRestricted use stock

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Transfer of Requirements to MRPOrdered quantities are passed to MRP (MM)Controlled by the schedule line categoryBlocking of documents can affect requirements passing delivery block*

Credit CheckEfficient means to implement credit managementIntegrated with FI via credit control areaAutomatically alerts when a credit check failsComprehensive credit management reporting*

Shipping Point & Route DeterminationA shipping point is determined for each line item shipping point determinationA delivery can only be processed from one shipping pointRoutes - route to be traveled & transit time are determined using customized rulesRoutes can be used to simply define transit time *

Foreign Trade & License ProcessingPredefined trade areas NAFTA, EUAutomated reporting for trade areasAutomated controlslicense managementembargo listscontrol by customer, country, product, point in time*

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Shipping OverviewComprehensive functionality to support picking, packing and loading functionsWork list and deadline monitoringFunctions with backorder processingTightly coupled to the MM and FI modulesFacility for transportation management

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Shipping OverviewOrderCombinationOrderPartialDelivery*

Shipping OverviewDelivery creation activitieschecks order and materials to determine if a delivery is possible delivery block, incompletenessconfirms availabilityconfirms export/foreign trade requirements determines total weight & volume*

Shipping OverviewDelivery creation activitiesgenerates packing proposalconsiders partial deliveries updates route assignmentassigns picking locationdetermines batchesupdates sales order status, delivery qty*

Deliveries & Delivery NotesThe Delivery NoteInitiates the delivery processControl mechanism for the processChanges to delivery are allowable - products, quantitiesDeliveryNotePickingPackingLoadingPost GoodsIssueStatus*

Delivery Due ListProduces a work-list of deliveriesEncompasses deliveries and transfersCan be scheduled to run in batchAutomatically combines deliveries*

Picking Quantities based on deliveryAssigned date when picking should beginAutomated storage location assignmentSupports serial number tracking and batch managementIntegrated with Warehouse Management (WM)*

PackingIdentifies which packaging is to be used for specified productsIdentifies and updates accounts associated with returnable packagingTracks the packed product by containerInsures weight/volume restrictions are enforced*

Goods IssueEvent that indicates the change in ownership of the productsReduces inventoryAutomatically updates the G/L accountsEnds the shipping process and prevents changes to the shipping documents*

Goods Issue*

Billing OverviewAutomated invoicing based on sales orders and/or deliveriesFunctionality for processing credit/debit memos and rebatesIntegration with FI & CO-PAUpdates customers credit data Can create pro forma invoices*

Automatic Account AssignmentDefines the G/L accounts that billing entries are posted to revenue, deduction, freight chargesCust Acct. Grp.01ApplicationVSales Org.SOxxKOFIChart of AccountsCHRTFromTableFromSalesDoc.Account KeyERLFrom PricingProc Condition Type610000From Table G/L AccountFrom CustomerMaster FromSalesDoc.FromSalesDoc.*

Revenue Account DeterminationA process to establish the revenue accounts to which prices, discounts, and surcharges are posted.

Usage:

You will need to determine the accounts to be posted in several different areasG/L accounts for posting sales revenue, sales deductions, and VAT are to be determined automatically when data is transferred from the billing document to FIWhen processing cash sales, a G/L account must be set in the document for cash settlementWhen using payment cards, you also need to post to differing G/L accounts.

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Revenue Account Determination*

Revenue Account DeterminationAccount determination is carried out using the condition technique.Depending upon the billing type, an account determination procedure is assigned for G/L accounts.This determination procedure contains one or more condition types to which an access sequence is assigned.This access sequence is composed of individual accesses in the form of condition tables.The condition tables contain the fields and/or field combinations upon which sales revenue determination depends.The key fields are filled with document data, so that the system can search for a corresponding G/L account for the relevant combination.If an access determines a G/L account, then it is set in the accounting document and the search is terminated.

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Pre requisites to perform Revenue Account Determination

Check Customer Master data Relevant for Account AssignmentCheck Material Master data Relevant for Account Assignment

Step to perform Revenue Account Determination

Create condition table with key combinationsCreate Access sequence with key combinationsCreate condition typeDefine Account Determination ProcedureAssign Account Determination Procedure to billing document typeDefine Account keysAssign Account keys to Pricing ProcedureAssign G/L AccountsRevenue Account Determination*

Revenue Account DeterminationPre requisites to perform Revenue Account Determination

Step 1: Check Master data Relevant for Account Assignment

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination check Master data Relevant for Account Assignment - Select Material: Account Assignment Groups

In this grouping the material like trading goods, service item, finished products etc.., will be done. After this the group has to be assign in material master data sales/sales organization data 2 tab.*

Revenue Account DeterminationStep 2: Check Master data Relevant for Account AssignmentMenu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination check Master data Relevant for Account Assignment - Select Customer: Account Assignment Groups

In this grouping the customers like Domestic revenues, Foreign revenues, etc.., will be done. After this the group has to be assign in customer master data sales area data billing tab..

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Revenue Account DeterminationStep to perform Revenue Account Determination

Step 1: In this step we have to create condition table with key combinations.

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define dependencies of revenue account determination

T-Code: V/12

Ex: 1. Customer group / Material group / Account key 2. Customer group/ Account key*

Revenue Account DeterminationStep 2: In this step we have to create Access sequence with key combinations.

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define Access sequence and Account determination type *

Revenue Account DeterminationStep 3: In this step we have to create condition type

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define Account determination type There are two condition types available.KOFI Account determination with out controllingKOFK Account determination with controlling

Here an Account determination type will be assigned to an Access sequence*

Revenue Account DeterminationStep 4: Define Account Determination Procedure type

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define and assign Account Determination Procedure Define Account Determination Procedure*

Revenue Account DeterminationStep 5: Assign Account Determination Procedure to billing document type

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define and assign Account Determination Procedure Assign Account Determination Procedure to billing document type*

Revenue Account DeterminationStep 6: Define and Assign Account keys

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define and assign Account Keys

Define Account keys *

Revenue Account DeterminationStep 7: Define and Assign Account keys

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Define and assign Account Keys

Assign Account keys to Pricing Procedure*

Revenue Account DeterminationStep 8: Assign G/L Accounts

Menu Path: IMG Sales and Distribution Basic Functions Account Assignment/Costing Revenue Account Determination Assign G/L Accounts

Revenue Account Determination*

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Billing DocumentsExplicitly specify documentsBilling due list builds a worklist of invoices that should be generated Automatic posting to FI*

Billing DocumentsGeneralledgerA/R recon.2000*

Billing PlansPeriodic total amount for a planned billing periodMilestone distributing the total amount over multiple billing dates - typically used with the project system (PS)Installment evenly proportioned amounts and defined payment datesResource related consumed resources such as service or consulting*

Billing Description%ValueBillingMilestoneBillingdateblockstatus11/20/96Contract1030,000 - x x01/20/97Assembly40 120,000 - x x04/20/97Operational40 120,000 x x05/20/97Acceptance1030,000 x x06/20/97Final invoice-- - - xSalesOrderBillingPlan*

Contracts Schedule Agreements*

ContractsDefined quantities and validity period for a customerThe contract is fulfilled by orders placed against the contract - release ordersContracts are automatically updated through release order processingPricing can be assigned to a contract*

ContractTarget Qty: 900Order Qty: 700ContractTarget Qty: 900Order Qty: 750...Release OrderOrder Qty: 200Release OrderOrder Qty: 150*

Scheduling AgreementsDefines specific product quantities and delivery dates for a customerSchedule lines and processed through standard delivery processingAvailability check is performed during creation and quantities are passed to MRPSystem automatically updates delivered quantities*

Scheduling Agreement

DateQty05/1510006/1510007/1520008/15300*

Backorder ProcessingRescheduling*

BackordersBackorder processingdetermines which orders have unconfirmed quantities by customer or materialsort the orders according to priorityassign available stock to outstanding orders or reassign confirmed quantities to high-profile orders*

BackordersRescheduling updates the orders with the results of the availability checkcan be used to manage the distribution of available inventory when demand is greater than supplyBest if run in batch mode, rescheduling can be very time consuming*

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OrderDeliveryInvoiceReturnsDeliveryReturnCreditMemo123Return toInventory*

Customer ReturnsReturns documentBilling block can be proposedUse the Order reason field to identify the reason for the returnFull access to pricing and ability to re-priceReturn deliveryIssues a goods receipt to place material into inventory*

Customer ReturnsCredit memoBilling block must be cleared from ReturnPosts to FICan be processed in batch (background)Can be processed collectively (grouped)*

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Communication OutputOutput traditional forms or electronic communications produced for internal or external partnersAssigned to business partners & sales documentsDefinable media EDI, fax, printHighly customizable Sapscript*

Communication TextTexts are used for internal and external communicationCreated for business partners, materials, header or item level of sales documents order, delivery, billing, picking listsPricing ProcessStandard pricing calculates the gross price, then applies discounts, surcharges and applicable taxes to arrive at the final price final price = gross price - discounts + surcharges + taxes Cost-plus pricing determines the base cost and applies the appropriate discounts, surcharges and taxes final price = cost - discounts + surcharges + taxes*

*CREDIT MANAGEMENTAN OVERVIEW

*CREDIT MANAGEMENT OBJECTIVE Types of Credit Check Customizing Credit checks Releasing of Blocked Documents Integration with FI Summary

*ObjectiveCredit management enables you to monitor, evaluate and control credit situations and credit allocations.

By carrying out credit checks according to different criteria and at different levels

By Automatic notification to the responsible employees

By Allocation of different authorizations to credit representatives according to certain criteria

*Customer Credit Management Over View General Data Address Central data Credit Control Area Data Status Payment Issue

* Simple Credit check Automatic Credit check Static credit check Dynamic credit check

*The Simple Credit check compares the Payer CMRs Credit limit to the total of the net Document Value and value of all open items

*Credit Limit: Defines the credit limit amount in the currency of the credit control area.

Risk Category: Enables the credit manager to classify customers according to commercial risk. Along with the document type, the risk category helps to determine which kind of credit check the system should carry out automatically.

Credit Representative Group: Defines a group of credit personnel, consists of credit manager and a number of representatives - who are responsible for processing credit holds. Features in CCMR

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TOTAL LIMIT: It is the credit limit which a customer can Avail in all credit control areas he is assigned to.INDIVIDUAL LIMIT:it is the maximum credit limit allowed for a customer in a credit control area

*COMPANY CODEC C ACUSTOMERRISK CATEGORYTRANSACTION TYPECREDIT GROUPCREDIT CHECKSales Area

*CREDIT GROUPS 01 ORDER02 DELIVERY03 GOODS ISSUESales Doc. TypesOR D 01DELIVERY GI 02 03Credit Check Activation at Item Category Level

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*Dynamic Credit Check Executed

*Status of Blocked Delivery Documents

*Processing an Accounting Transaction Using Credit Management

Enter customer credit dataCredit ManagementCustomer TRIL Co. ( Medium Risk )Credit Limit 5,00,000Mail BoxBlocked Sales Orders TRIL Co 5,000 SWAL Co 6,000Mail Box Credit Information System Contact Customer Release OrderEnter customerOrderSales and DistributionFinancial AccountingOrder 2046 TRIL Co 4,000Credit Limit Exceeded Mail to Credit Repre Order BlockedShipping , BillingIncoming Payment

*Releasing Blocked Documents Sales Documents Delivery Documents Sales & Delivery Documents

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Documentary payment (for example, letters of credit). Payment cards Export credit insurance (external link)

RISK MINIMIZING TOOLS

*Integration With FI Define Risk Categories Define Groups for each Credit Control Area Define Credit Representative Groups Define Credit Representatives

SALES & DISTRIBUTIONCONSIGNMENT PROCESS

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CONSIGNMENT FILL-UPCONSIGNMENT ISSUECONSIGNMENT RETURNCONSIGNMENT PICK-UPCONSIGNMENT PROCESS*

In consignment processing, goods are delivered to the customer but remain the property of the company until they are actually used.An invoice is not created until the customer withdraws the goods from the consignment stock.The customer has the right to return consignment goods up until that point.You can use the special stock partner function if the consignment stocks are managed at a centralpoint rather than by the sold-to party.CONSIGNMENT PROCESS*

You process consignment fill-up with order type KB. The goods issue sets up a special stock at the customer's. However, the goods remain in the valuated stocks of the delivering plant. This transaction isn't billed because the consignment stock remains the property of your company.*

T CODE: VOV8*

Configuration Item CategoryT CODE: VOV7*

Consignment issue is processed with order type KE. When goods are issued, both the customer special stock and the stock in the delivering plant are reduced. This transaction is relevant for billing.*

T CODE: VOV8*

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T CODE: VOV7*

If you want to reverse a consignment issue, you can process this with document type KR (consignment return). The goods issue sets up the special stock at the customer's again. A credit memo is generated based on the consignment returns.*

T CODE: VOV8*

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T CODE: VOV7*

If the customer returns the goods, you can represent this with order type KA (consignment pick-up).This transaction credits the special customer stock during the goods issue. Like the consignment fill-up, this transaction is not relevant for billing.*

T CODE: VOV8*

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T CODE: VOV7*

THIRD PARTY PROCESSCOMPANYCUSTOMERVENDOR*

THIRD PARTY PROCESSTHIRD PARTY PROCESS(VENDOR DELIVERS PRODUCT TO CUSTOMER on Customer Requirement)INDIVIDUAL PURCHASE ORDER NO VENDOR DELIVERY TO CUSTOMERItem categoriesOR+BANS-------------TAS ( THIRD PARTY)OR+BANC--------------TAB (IPO)REQUIREMNETS:1 VENDOR 2.MATERIAL MASTER SALES ORG 2 ITEM CAT GRP(RT SIDE)- BANS OR BANC3. MAINTAIN PURCHASING TAB PAGE IN MATERIAL MASTER

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An over view*

RebatesA rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period. *

Why Rebates ?Rebates are frequently offered to customers to promotesales and build customer loyalty.

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Contains

Processing rebates Creating rebate agreements Settling rebatesRebate agreement types

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Creating Rebate Agreements

The rebate agreement is created with reference to a rebate agreement type. Condition records are linked to the rebate agreement specifying the rebate rate and the accrual rate.With the rebate agreement, you can specify:The condition types used with this rebate agreement type validity period proposal*

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Rebate Processing

Rebate processing begins by creating a rebate-relevant billing document.The valid rebates are determined by the pricing procedure using the rebate basis subtotal.Each rebate condition type has an assigned access sequence.The system uses the access sequence to search for the valid rebate condition records. If valid condition records are found, the accrual rate is read.*

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Rebate Agreement Types

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Summary

Rebates are frequently offered to customers to promote salesIn order to use the rebate functionality of the system, Check whether rebate processing is active for customer, billing type F2, and sales organization. Create a rebate agreement for rebate recipient.Make an order---dly---billing---a/c to release.Once accruals piled in accounts go for settlements.*

Logistics Information SystemInventory ManagementPurchasingSales and DistributionProductionPlant MaintenanceQuality Management*

SIS OverviewFlexible information system designed to support business planning, forecasting and reportingPre-defined catalog of performance measures and reportsOn-demand access to reports and exceptionsData maintained in a separate database*

Inventory Information System Standard AnalysisMaterialPlantStorage LocationMRP ControllerMaterial Groupings*

Purchasing Information System Standard AnalysisMaterialVendorMaterial GroupPurchasing GroupPurchasing Documents*

Sales Information System Standard Analysis5 Pre-defined drill-down reportsCustomerMaterialSales OrganizationShipping PointSD Documents*

Production Information System Standard AnalysisProduct GroupMaterialWork CenterProduction Resources and Tools *

Reporting ToolsValue display - absolute or percentageTop N - top 10, top 100, etc.Sorted - ascending or descendingABCClassificationGraphics - 2D, 3D*

*************************Base Unit of Measure = EASales Unit of Measue = BOX (Table: 1 BOX = 20 EA)Delivery Unit of Measure = PAL (Table: 1 PAL = 12 BOX)

**Item Category Group + Document Type = Item Category(Item Category Group is freely definable in Controlling - Product Cost Controlling - Product Cost by Sales Order - Control of Sales-Order-Related Production - Selection of Requirements Type Through SD Item Category - Check Item Category Groups).Item Categories defined in (same path) - Check Item Categories.Table that links: Item Categroy Groups with Document Types is populated in (same path) - Assign Item Categories.

Item Category dettermines how a specific item is processed by system. E.g. a text item is not relevant for pricing.*Material Pricing Group: A way to group materials to which you want to apply he same conditions.

Item Category Group + Document Type = Item Category(Item Category Group is freely definable in Controlling - Product Cost Controlling - Product Cost by Sales Order - Control of Sales-Order-Related Production - Selection of Requirements Type Through SD Item Category - Check Item Category Groups).Item Categories defined in (same path) - Check Item Categories.Table that links: Item Categroy Groups with Document Types is populated in (same path) - Assign Item Categories.

Item Category determines how a specific item is processed by system. E.g. a text item is not relevant for pricing.

*****AddressName: Name of the customer.Search Term: A method to find your customer by match-codes. Street:Optional entry.City:Mandatory entry.Postal Code: Mandatory entry.Country:Mandatory entry.

CommunicationLanguage keyMandatory entry

*Account control

Vendor If the Customer is a Vendor as well, enter the Vendor number here. Group key Freely definable key for reporting

Tax information

Tax code 1Number, with which the customer reports to the tax authorities.

Tax code 2Number, with which the customer reports to the tax authorities. Fiscal addressAccount number of the master record containing the fiscal address.

Tax information

County codeKey for county taxes.City codeKey is used for city taxes.Tax jurisdiction codeThis code is used in the US to determine tax rates.

Reference data / area

IndustryFreely definable name for a group of companies (e.g.trade, manufacturing).Transport ZoneRegion, where the ship-to party is located.

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Nielsen IDNielsen indicator. The regional division of the company according to the Nielsen Institute, allows market analysis of your market by the A.C. Nielsen Company.

Customer classificationFreely definable customer classification field.

IndustryBranch of industry classification of customer.

Industry code 1 Standard Industry Codes (SIC).Operating figures

Annual salesAnnual sales in currency in year.

Number of employeesNumber of employees in year.

Fiscal year variantThe fiscal year variant of the company.

Sales prospecting

Legal statusA coding of the legal status of the company i.e. Limited, Incorporated.

*CountryCountry.Bank KeyCountry-specific bank key.Account holderName of account holder, if different from customer name.Bank AccountNumber, under which the account is managed at the bank.Control KeyThis field has different uses in different countries. In the US, this number is used to identify checking vs. savings account.CollectionThis checkmark is selected, when the customer allows for direct payment collection through the bank.

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Unloading pointThe customer point at which deliveries are to be unloaded.Customer calendarDefines the factory calendar that your customer uses, specifying days on which deliveries will be accepted.Unloading point defaultIf more than one unloading point is specified, this check box is used to identify which unloading point is to be defaulted.Goods receiving hours Customer specific schedule of receiving hours.*Country key for exportCountry key for the country that placed this customer on the boycott list.control of customer

Table of Denial Orders Check mark indicator for customer who is listed in the Table of Denial Orders list. (US)list (TDO)

TDO dateDate, on which the customer was last checked on the TDO list.

Special Designated List of individuals and companies that US companies shouldnt trade with or only on a limited basis. Nationals list (SDN)

SDN dateLast check date for customer on SDN list

BoycottCheck mark for customers on your companys boycott list.Boycott dateDate, on which the customer was last checked on the company boycott list.

Mainly civilian usageIndicators for customers product usage.Mainly military usageIndicators for customers product usage.

ClassificationIndicators for: Chemical/Biological Warfare, Nuclear Nonproliferation, National security and Missile technology.

*NameName of contact.

Telephone1First telephone number of the contact.

DepartmentDescription of the department of the contact for internal purposes.

First nameFirst name of contact

Form of address e.g. Mr., Ms.

FunctionJob function of contact.*Reconciliation AccountReconciliation accountSort keyThis field indicates the standard sort sequence for the display of the line items.Head officeThis field contains the account number of the head office.

Interest calculationInterest indicatorCheckmark for automatic interest calculation.Interest calculation frequencyFrequency of automatic interest calculation (in months). Last key dateSystem generated date of last interest calculation.

Reference dataBuying groupNumber of buying group (if applicable).

*Payment termsPayment terms including optional cash discount.Tolerance groupFreely definable group term for the business partner, customer and vendor, which determines the amount up to which payment differences are posted automatically to expense or revenue accounts when clearing items.

Record payment historyIndicator, which determines that the payment history of this customer is to be recorded.

Payment methodsList of payment method(s) for automatic payments to this customer/vendor.

Alternative payerAccount number for alternative payer, if bank collections are not to made via the customers account.

LockboxLockbox identification, to which customer is to make payments.

*Dunning data

Dunning procedureKey for dunning procedure used.Dunning recipientAccount number of recipient of dunning letters.

Dunning levelSystem generated entry, which indicates dunning level reached by the last dunning run.

Last dunned Date of last dunning notice to this customer.

*Correspondence

Account at customerAccount number our company is listed under at the customer.

Account statementIndicator ID, which states when to create periodic account statements for this accountCustomer userName of accounting contact at customer.

Payment notices to(Indicators) Customer (with or without cleared items), Sales, Accounting, Legal department.

*Sales districtRegion where customer is located. Sales officeYour branch office or sales department that has responsibility for sales in a certain regionSales groupSub section of a sales office. Group of sales people.Order probabilityStatistical value based on the percentage set in the document type master record and the percentage set in the customer master record.Item proposalDefault valueAccount at customerAccount number, our company is listed under at customer.Price groupGrouping of customers for pricing purposes

Customerpricing procedureDetermines, together with other values, the pricing procedure for this customer.

Price list type Grouping of customers for pricing purposes

Customer statistical groupIndicates, which data will be updated in the Logistics Information System.

*Delivery priorityAllows deliveries to be processed based on different priorities.

Shipping conditionsDetermines, how the customer in general wants the goods to be shipped.

Delivering plantPlant, from which goods are (default) delivered to the customer.

Order combinationIndicator, set when customer allows for different orders to be combined for delivery.

Partial delivery dataComplete deliveryIndicator, set for customers, which dont allow for partial deliveries to take place.

Maximum part deliveriesEnter here the number of partial deliveries allowed by this customer. (Maximum 9).

General transportation dataTransport zoneLocation zone of ship-to party

Route determination = shipping conditions + transportation group + transportation zone

Transportation time defined per Route in IMG

*Billing section

Manual invoice maintenanceIndicates, if invoice should be printed for further manual processing.

RebateIndicates, if customer is eligible for rebates.

Billing scheduleIdentifies the calendar, which determines the billing schedule for this customer.

Delivery and payment terms

Incoterms 1Assigns transportation responsibilities and ownership transfer.Incoterms 2Additional information.Payment terms Payment terms including optional cash discount.

Accounting

Account assignmentgroupDetermines the revenue accounts for this customers sales transactions.

Tax dataCountryCountryTax categoryTaxes, applicable to this materialTax classificationtaxable or exempt

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CREDIT MANAGEMENT*CREDIT MANAGEMENT*