Sales & distribution training overview


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Sales & distribution training overview

  1. 1. An Overview on Sales & Distribution
  2. 2.  Enterprise Structure  Master Data  Pre sales activity  Sales activity  Business Scenarios  Special Business Scenarios  Customer complains  Scenario wise test scripts  Evaluation
  3. 3. Sales & Distribution - Organizational Structures -
  4. 4. Baseball Division BB Softball Division SB Direct Distribution Channel DI Baseball Division BB Softball Division SB Wholesale Distribution Channel WH Baseball Division BB Softball Division SB Retail Distribution Channel RE Domestic Sales Sales Organization So00 Baseball Division BB Cricket Division SB Wholesale Distribution Channel WH Europe Sales Organization EURO Baseball Division BB Wholesale Distribution Channel WH Asia Pacific Sales Organization APAC Pastime Corporation Company Code CC00 Client 860
  5. 5.  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
  6. 6.  Identifies how products and services reach the customer  Can be assigned to one or more Sales Organizations
  7. 7.  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
  8. 8.  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
  9. 9. Domestic Sales Sales Organization SO00 Direct Distribution Channel DI Wholesale Distribution Channel WH Retail Distribution Channel RE Baseball Division BB Softball Division SB Baseball Division BB Softball Division SB Baseball Division BB Softball Division SB
  10. 10. Domestic Sales Sales Organization SO00 Direct Distribution Channel DI Wholesale Distribution Channel WH Retail Distribution Channel RE Baseball Division BB Softball Division SB Baseball Division BB Softball Division SB Baseball Division BB Softball Division SB
  11. 11.  Typically defines a territory or market area  Linked to one or more Sales Areas  Optional organization structure
  12. 12. Domestic Sales Area Western Sales Office Eastern Sales Office
  13. 13.  Sales Group  Sub-division of a sales office, territory or market
  14. 14.  Sales Person  Defined in HR — Personnel Admin.  Specifically defines an individual rather than a position (sales rep.) in sales processing
  15. 15. Domestic Sales Area Western Sales Office Eastern Sales Office Southwest Sales Group Northwest Sales Group Sales Person Sales Person Sales Person Southeast Sales Group Northeast Sales Group Sales Person Sales Person
  16. 16.  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
  17. 17. Purchase Org
  18. 18. Document Organizational Units in Sales and Distribution RR//33 ll Company codeCompany code ll Sales AreaSales Area  Sales organizationSales organization  DistributionDistribution channelchannel  DivisionDivision ll SitePlant ll Storage locationStorage location ll shipping pointShipping point
  19. 19.  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.
  20. 20.  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.
  21. 21.  Sales Organization  Distribution Channel  Division  Sales office  Sales Group
  22. 22.  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.
  23. 23.  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
  24. 24.  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.
  25. 25.  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
  26. 26.  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
  27. 27. January 2007 (v1.0) The Rushmore Group, LLC 27 Client 410 Company Code C100 Plant P100 Plant P101 Sales Area Sales Org S100 Distribution Channel (RE) Division (01)
  28. 28. 2 Retail trade 2 Motorcycles 3 Computers 3 Computers 5 Internet 2 Cologne 1 Pumps 1 Wholesale trade 2 Motorcycles 1 2 2 1 2 3 1 5 3 2 1 2 2 1 Munich 1 1 Sales Organization Distribution Channel Division Sales Area Sales area : Combination of sales organization, distribution channel & Division .
  29. 29.  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
  30. 30. 30 Customer Master Data Material Master Data Cust/Mat Info Record Output Master Data Condition Master Data
  31. 31.  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 31
  32. 32. 32 • The customer master information is divided into 3 areas: – General Data – Company Code Data – Sales Area Data
  33. 33. 33 Company Code 102 Company Code 101 Company Code 100 Client 410 Sales Org. 101 Sales 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
  34. 34. Ship-to Party Bill-to Party Payer Other Sold-to Party Partner Function Master Data: Customer Master
  35. 35.  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 35
  36. 36. 36 Material Master Basic Data Sales Data Controlling Data Forecasting Data Purchasing Data Mat. Plan. Data Accounting Data Storage Data Quality Data
  37. 37.  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 37
  38. 38.  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 38
  39. 39.  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 39
  40. 40. 40 Sales Order Process
  41. 41. 41 Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability Pre-sales Activities
  42. 42. 42 Pre-Sales Activity Sales Order Delivery Billing General Ledger Accounts Accounts Receivable
  43. 43. 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
  44. 44.  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. 44
  45. 45.  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. 45
  46. 46.  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 46
  47. 47.  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. 47
  48. 48. 48 Requested Delv. Date Goods IssueLoading Material Availability Order Date Transp. Sched. Transit Time (2 days) Loading Time (1 day) Pick & Pack Time (2 days) Transp. Sched. Time (1 day) 2nd 3rd 4th 5th 6th1st
  49. 49.  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. 49
  50. 50.  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 50
  51. 51.  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. 51
  52. 52.  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. 52
  53. 53. 53 Order Combination Sales Order 1 Sales Order 2 Sales Order 3 Delivery 8…12 Partial Delivery Sales Order 4 Delivery 8…13 Delivery 8…14 Delivery 8…15 Complete Delivery Sales Order 5 Delivery 8…16
  54. 54. 54  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
  55. 55.  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) 55
  56. 56.  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 56
  57. 57.  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 57
  58. 58.  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. 58
  59. 59.  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. 59
  60. 60. 60 Collective Invoicing Delivery based Invoicing Delivery 8…34 Delivery 8…33 Order 14 Order 9 Delivery 8…56 Invoice 9…68 Order 6 Delivery 8…20 Delivery 8…21 Invoice 9…45 Invoice 9…46 Split Invoicing Order 32 Delivery 8…86 Invoice 9…92 Invoice 9…91
  61. 61.  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. 61
  62. 62.  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). 62
  63. 63.  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
  64. 64.  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
  65. 65.  Create condition master  Transactionscode:VK11  Change condition master  Transactionscode: VK12  Display condition master  Transactionscode: VK13  ....................................................................................................  Create customer material inforecord VD51  Change customer material inforecordVD52  Display customer material inforecord VD53  ..........................................................................................................  Create Out put condition master  VV11  Change Out put condition master VV12  Display Out put condition master VV13
  66. 66. T-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 order Delivery VL01N –Create delivery ,VL02n –change/PGI ,VL03N –display VL04 - Collective processing of delivery Billing  VF01-Create Billing Document,VF02-Change Billing Document VF04-Maintain Billing Due List VF03-Display Billing Document VF11-Cancel Billing Document
  67. 67. 67
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