Sd1 Sales Overview

Sales and Distribution Overview

Business Process Workshop The objectives of the Sales and Distribution Overview workshop is to: • Provide an overview of the Sales and Distribution Business Process • Demonstrate how SAP will be used to manage this process

Agenda Topics: II. Master Data in Sales & Distribution III. The SD Business Process IV. Collection V. Reporting and Analysis

I. Master Data in SD

Master Data in Sales & Distribution • Master Data is centrally stored (shared across application modules) and processed to eliminate data redundancy. • These three master data records are critical to sales order processing: – Customer Master – Material Master – Pricing Condition

Customer Master Record Consists of the following views: General Data Company Code Sales Area Data Data

Customer Master • The customer master contains all customer-related data necessary for processing orders, deliveries, invoices, quotation and customer payments. • A customer number will be automatically assigned to a new customer at the time of customer creation. • 99% of our customers will belong to one Sales Area. If a customer belongs to more than one Sales Area, SAP will prompt you to choose one at order entry. General data Sales & Distribution data Company code data

Customer Master Record General data Client Bank details General data Company code - Y012 Company code data Sales data Reconciliation acct 121000 Sales district 00001 Payment terms NT30 Sales office 01 Sort key 001 Price group 01 Accounting data Sales area data

Customer Master View Field Groups Address General Address Communication Data: Tax Jurisdiction Account Control Control Data Tax Information Reference Data/ Area Not implemented in current Marketing Stage

Customer Master View Field Groups General Payment Bank Details Data: Transactions Payment Transactions Unloading Unloading Point Points Customer Factory Calendar Contact Not implemented in current Person Stage

Customer Master View Field Groups Account Management Company Account Interest Calculation Code Data: Management Reference Data Payment Data Payment Automatic Payment Transactions Transactions Payment Advice Notes Dunning Data Correspondence Correspondence Payment Notices To Export Credit Insurance Insurance

Customer Master View Field Groups Sales and Sales Office Distribution Orders Sales Group Data: Customer Group Delivery Priority Delivering Plant Shipping Partial Delivery Indicator Terms Of Payment Billing Tax Classification

Customer Master View Field Groups Sold To Customer Sales and Distribution Partner Ship To Customer Function Bill To Customer Data: Payer Customer Forwarding Agent Partner Sales Employee Function 3rd Party Rep

Business Partners Customer master records can be defined as business partners. The following four partners are mandatory in the sales order (when creating a Sold-To customer all 4 are automatically created): Sold-to party Ship-to party Customer Master Bill-to party Payer

Account Group Create sold-to party Customer : 1000012 Sales organization : 0010 Distribution Channel : 10 Division : 02 Account Group : 0001 Field selection ACCOUNT GROUP Number Assignment One-time account: yes/no 0001 Sold-to party Output Proposal 0002 Ship-to party 0003 Payer 0004 Bill-to party Z001 Related Party

Material Master • The material master contains all data required to define and manage material. – It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting, and other departments. • The material master is used as a source of data for sales order processing throughout the customer order management cycle. General data Purchasing data Accounting data Sales data Manufacturing data (etc.)

Pricing Condition Record Condition Type: PR00 Condition types determines selling price of materials Automatically copied into Sales Order Pricing Master Records are located in condition types in Sales and Distribution. Material Price (known as List Price in BOSS) is no longer maintained in the Material Master Record.

Prices and Discounts Conditions Prices Discounts/surcharges Price list Customer   Material price Customer/Material pricing group   Customer/material 3rd Party Commissions   Pricing is carried out automatically based on predefined prices, discounts, and surcharges. Prices can be manually overrode on the sales order (when applicable).

Sales & Distribution Overview Review Questions • In SAP, a customer is also referred to as this. • What is the means through which material/services reach the customer called ? • What is the combination of the sales organization/distribution channel and division referred to as ? • What are the 3 views in the customer master called? • Where is the material price (known as list price today) stored in SAP? • What is the physical location where material is managed called?

II. The SD Business Process

Business Processes Cycle Sales Order Processing Sales Order Processing Inventory Sourcing Inventory Sourcing Pre-Sales Activities Quotation Invoice Delivery Delivery Payment Payment Billing Billing

Business Process Summary Pre-Sales S A L M Contract Quotation Inquiry Contract Quotation E A S T E Sales Order I R Order Processing N I F A Inventory Sourcing O L R S Delivery M Delivery Picking Goods Issue Delivery Picking Goods Issue A M T A I N Billing O A Invoice N G E Customer payment/ S M Y E Financial Accounting S N Accounts Material Stock Accounts Material Stock T T Receivable Account Receivable Account E M

Review of Business Processes Sales Order Processing Sales Order Processing Inventory Sourcing Inventory Sourcing Pre-Sales Activities Quotation Invoice Delivery Delivery Payment Payment Billing Billing

Pre-Sales Data from Inquiry…

Pre-Sales Can be used to generate a Quote, Order, etc…

Sales Which can be used to generate a Sales Order

Sales Order Processing • Customers place orders • Standard orders normally contain: – Customer and material information – Pricing for each item – Delivery schedules and requirements – Billing information

Business Process Flow in SAP Order Delivery Invoice Payment Document flow of a sales document Order 900 . Delivery 80000459 . . Picking request 17951109 . . GD goods issue: delvy 49001828 . . Invoice 90000333 . . . Accounting document 100000276 Sales documents represent transactions in the system.  They form a chain of related documents.  The entire chain of documents creates the document flow.  The system copies data from one document into another to reduce  data entry and make problem resolution easier.

Creating an Order Customer master Sold-to party 1000016 Item Material Quantity 1 SGMAH-02BAF41 10 Material master 2 SH10VA-S50 20 When you create a sales order without reference, the system automatically copies the: Sold-to party and its partner data from the Customer Master records  Line item or material data from the Material Master record 

Availability Check in Order Processing • Availability check occurs during sales order, rescheduling and delivery processing: • It occurs in the plant determined for the customer/material

Availability Checking in SAP Advantages of the Availability Check: – Real-time status of inventory allocation – Accurate delivery dates – Automatic scheduling – Configurable scope of check for inward and outward movements – Considers lead times

Inventory Sourcing Inventory Sourcing determines: – If the product is available (availability checking) – How the product will be supplied: • From stock on hand • By replenishment activities (production order, purchase order) • Make to order • Shipped by an external supplier (3rd Party) • Shipped from another warehouse

Backorder Processing Backorder processing is a manual process of reallocating stock from one sales order to another. – Stock allocated and confirmed for one sales order can be moved manually to another sales order. – You should use an availability check indicator in which requirements are processed individually. This makes the sales order number visible on the backorder processing screen.

Delivery Warehouse Sales Delivery order document • Creating delivery • Picking • Manual Packing documents .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .... ... .... .. . . ... .... ... .... ... .... ... • Shipping papers • Goods issue • Updating inventory • Updating general ledger

Creating Delivery Documents Sales Order 1 Sales Order 2 Sales Order 3 Customer 1 Customer 1 Customer 2 Shipping point Due date Customer Delivery Delivery The delivery document is used to initiate all activities relevant to  shipping, such as picking, packing, and transportation. A delivery document is created for a shipping point for an order that is  due for delivery. The system copies the relevant data from the order.

Different Types of Order Fulfillment Sales order Delivery Complete delivery Delivery Sales order Delivery Partial delivery Delivery Sales order Delivery Order combination Sales order

Collective Processing in Delivery Delivery due list Delivery Sales order Sales order Sales order Sales order Delivery Sales order Sales order Delivery The delivery due list allows you to create more than one delivery at a time. This function can be executed by: – Online processing of the delivery due list – Creating a batch job in the background to be executed during off-peak hours

Billing Billing supports: – Creating invoices for deliveries and services – Creating credit and debit memos on the basis of requests – Canceling business transactions – Transferring posting data to financial accounting Invoice

Options for Creating Invoices Invoice Sales order Delivery Invoice split Invoice Delivery Invoice Separate invoice Sales order per delivery Delivery Invoice Delivery Sales order Delivery Invoice Collective invoice Sales order Delivery The system can create a separate invoice for each sales order or part of a sales order, an invoice for each delivery, or an invoice for a combination of sales orders and deliveries.

Collective Processing in Billing Billing due list Invoice Delivery Delivery Delivery Invoice Delivery Delivery Delivery Invoice The billing due list allows you to create more than one invoice at a time. This function can be executed by: – Online processing of the billing due list – Creating a batch job in the background to be executed during off-peak hours

III. Collections (Returns / Credit)

Customer Payment • Final step of the cycle • Customer Payment includes: – Posting payments against invoices – Reconciling differences, if necessary

Returns and Credits Overview ed ag Return Order Processing m Da Receipt Credit Memo Payment Billing

When Do Credit and Debit Memos Occur? Order Delivery Billing Return Return Delivery Credit memo order (authorization)

How Are Returns Processed? Invoice Return Returns Credit memo request delivery (authorization) Sales Order Accept returned  Credit memo  Order reason  goods (Post created after required to create goods issue) removing the Return Order billing block. Place in restricted  stock Invoice Billing block

Credit and Debit Memos Credit Memos Invoice Credit memo Credit memo request Invoice Sales Order Debit Memos Billing block Invoice Debit memo Debit memo request Invoice Sales Order

IV. Reporting and Analysis

Reporting and Analysis in SAP R/3 • Standard Reporting – Lists documents and master data – Provides analysis through sorting and totals – Displays details • List Processing – Lists selected documents – Allows you to branch to documents and return to list – Helps organize work • Billing Due List • Delivery Due List • Incomplete Sales Documents List

Initial List Customer Analysis-New Selection: Initial List Key figures The standard analysis initial list shows key figures according  to the characteristics and time period specified. From this screen, you can access different evaluation  functions (e.g., ABC analysis, classification, dual classification, totals curve) to further analyze the key figures.

Initial List Customer Analysis-New Selection: Initial List By double-clicking on an individual customer, you can drill down and view all of the totals by period for this customer.

With a double-click, you can drill down for even more detail.

Editing the List Customer Analysis-New Selection: Top Five Customers NOTE: Credit Memos was used due to insufficient data at time of course development.  You can further edit the list. This example shows:  The top five customers (View > Top N)  Other figures (Edit > Choose key figs)

Sales & Distribution Overview Review Questions • When are the 3 times that availability checking occur? • What is the chain of SD documents called? • What information is required when entering a return order request? • What process needs to take place for a Credit Memo to be generated from a Credit Memo Request? • Who processes the delivery on the return order?

This course was developed with the assistance of: Right Solution, Right Time, Right Price

Sd1 Sales Overview

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