ppt helps you to know overview of sap sd or business processes of sap sd

1. Presentation on SAP SD
 By Prasann Patil
By Prasann Patil
Hitech Infotech It Services Pvt Ltd

2. Introduction to SAP SD
SAP Sales and Distribution (SD) is an important module of SAP ERP consisting
of business processes required in selling, shipping, billing of a product. The
module is tightly integrated with other SAP MM & SAP PP.
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4.  What is sales order ?
An agreement between a seller and a customer concerning the sale and delivery of
goods, as well as any services that are associated with these processes, on a specific date,
for a specific quantity, and for a specific price.
 What is delivery ?
When a delivery is created, shipping activities such as delivery scheduling, picking and
packing are triggered in the system. A shipping point is responsible for processing a
delivery.
 What is PGI (Post Goods Issue) ?
Post goods issue is the last Step of delivery/shipment processing. Herein, ownership of the
goods transfer to the customer and the stock is updated. The carrier in turn transfers the
ownership to the final customer once goods are delivered.
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5. Types of data in SAP
 Configuration data
 Master data
 Transaction data
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6. Customer Master and Material Master data
 Customer is the key Master Data in SAP SD.
In this section, we will learn about
• Account Group ( required to Create Customer Master),
• Partner Function (Businesses you work with), and
 Material Master ( goods sold to customer)
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7. Features of SAP SD module
Here are some important features of the SAP SD module:
• Price and Taxation: – It helps you to evaluate the price of goods and services
under various conditions like discount, which is granted to a customer.
• Availability Check: Check the availability of a product in the warehouse of an
organization.
• Billing & Invoice: Helps you to generate bills or invoices.
• Material Determination: Helps you to determine the details of materials on the
basis of a certain condition.
• Credit Management: It is a method of managing the credit limits of the
customers. It can be figured in two different ways simple credit check and
automatic credit check.
• Account Determination: Helps you to determine the details of customers on the
basis of a given condition type.
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8. Create Customer Master Data: XD01
Customer Master is Primary master data in SAP SD. To create Customer Master we need
Account Group. Account Group: Account Group is accumulation of similar accounts. The
master records in the customer hierarchy are controlled by their account groups.
Customer master consist of three are data :
1 General area data
2 Company code area data
3 Sales area data
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9. Business Scenarios:
1. Cash sales
Cash sales are a special sales document type by which we can map the business
process of immediate sales. In this business scenario customer pays the money
and picks the material immediately. Cash sales order does not have any invoice.
But system generates duelist for billing document type BV. In cash sales cash
account directly updated.
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10. 2. Rush order
Rush order and cash sales more or less same like cash sales system generates
delivery document as soon as the end user saves the document.
In the rush order processing the customer places the order and collects the items
immediately or we ship the materials immediately. However, we only invoice the
customer later.
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11. 3. Credit Memo Request :
This would be used in the following examples:
1. The customer discovers the products we sent him are defective, and the costs to initiate a return
delivery would exceed the costs obtained repair of the product.
2. The customer is overcharged for a product or service and we issue a credit for the difference.
Accounting entry is - Revenue account Debit to Customer account Credit
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12. 4. Debit Memo Request :
When the business incurs loss in a transaction then the business should be compensated by the
customer in the form of debit memo with reference to debit memo request.
Ex: Miss calculation of price or Excessive delivery than order quantity
Accounting Entry is - Customer account Debit to Revenue account Credit
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13. 5 . Returns :
This scenario comes into the picture when the customer receives the damage goods from business
and business wants to receive damaged goods for testing purpose before compensation, the end
customer has to return the damaged goods, and business has to receive those goods into a separate
storage location.
Once return process takes place, customer may request
1. Good replacement
2. Refund
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14. 6. Subsequent free of charge delivery :
When the customer incurred loss, then the business can compensate him by sending
normal items as compensation.
Original sales order Create subsequent free of Create delivery LF
[OR] charge delivery KN [SDF]
Returns order
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15. 7. Free of charge delivery :
When the business wants to send samples to the customers then the business can map
the scenario with the free of charge deliveries
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16. Consignment business process
We can map the business process of consignment in 4 phases.
1. Consignment Fill-Up (Stock Fill up at warehouse).
2. Consignment Issue (Stock issue from warehouse).
3. Consignment Return (Stock return from customer).
4. Consignment Pickup (Stock return to manufacture)
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17. Consignment Fill – up :
The consignment fill – up phase business fills the stock with consignment agent.
This phase will have only delivery
Consignment Issue :
In this process consignment agent sells the goods to the end customer.
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Consignment Returns :
As end customer returns the damaged goods to the consignment agent. Consignment
agent has to receive those damaged materials.
Consignment Pick– up :
The consignment agent returns the remaining goods to the business. So that business has
to pick up the stock from the consignment agent

19. Third party sales process :
In the third party order processing the business gets the orders from the customer and
it passes to the third party vendor who delivers the goods to the customer, and bills the
business.
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20. Make to Order :
Make – to – order production is nothing but manufacturing the standard material by
changing characteristics of the material that slightly changes the standard material.
Customer will have a choice to choose this characteristic depending on the requirements
from the customer.
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21. Inter company sales
In the normal business process the end customer place the purchase order with ordering
plant. Then the ordering plant if the material is not available then the ordering plant will
raise the purchase order with delivering plant, and the delivering plant raises the sales
order with reference to purchase order, subsequently it will deliver the foods directly to
the end customer, and issue on INTER COMPANY BILLING to ordering plant. Then the
ordering plant raises the standard invoice in favor of end customer. With this step inter
company billing/sales process will complete.
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22. Stock Transfer Order :
1 Intra- company sto :
When the stock is going to be moved between two plants or two storage locations that are under single
company code called as stock transfer order business process. Receiving plant raises the purchase order
with supplying plant; supplying plant delivers the goods to the receiving plant by raising sales order.
2 Inter- company sto :
Materials are transported between the plants belonging to the different company codes of same
company.
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23. Account determination (SD & FI Integration) :
Whenever we sell finished goods to the customer, the customer has to pay for them. In
this process, we post the Sales Invoice document which is part of the Sales & Distribution
module into the FI module. In SAP, we call this procedure SAP SD-FI integration.
Accounting Entries
Accounting entry concerning Sales Process
Cost of Goods Sold (COGS) – Debit (Dr)
Finished Stock – Credit (Cr)
Accounting Entry for Billing are as follows:
Customer Account – Debit (Dr)
Revenue Account – Credit (Cr)
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24. Assign GL accounts: Transaction code: VKOA
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25.  Assign GL accounts: Transaction code: VKOA
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Application Condition
type
Chart of
accounts
Sales
organization
Accounting
key
GL Account
No.
V KOFI 0002 SRI ERL 100000
Incoming Payment : T-code F-28

26. Material determination / Product selection
Material determination is a condition technique used to resolve a target material
number from the material number entered in a sales document.
It can also be used to swap a customer’s part number for the business part number.
A – Same material with special packing.
B – If the business wants to change material number with EAN numbers.
C – The old stock is to be exhausted.
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27. Thank you
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