This document provides an overview of the Sales and Distribution (SD) module in SAP. It describes the core components and functions of SD including master data, sales support, sales orders, shipping, billing, and the sales organization structure. Key elements covered are materials master data, pricing, sales documents, delivery processing, invoicing, and how the sales hierarchy is organized into sales areas, offices, and groups.

1. Sales and Distribution (SD) Overview

2. R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Management PM Plant Maintenance SM Service Manage- ment Integrated Solution Client / Server Open Systems EC Enterprise Controlling AM Fixed Assets Mgmt.

3. SD Mechanisms 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

4. SD Components Sales Support Master Data Shipping Sales Foreign Trade Billing Sales Info System Transportation

5. SD Overview — Master Data Detailed information about customers, materials and business partners Flexible data structures that support the business environment Specialized master data to support sales order processing

6. SD Overview — Sales Support Provides the functionality to support the staff involved in business development and customer service processes Primary functions Sales Prospects Contact Persons Competitors and Competitive Products Sales Activities Direct Marketing

7. SD Overview — Sales Primary base for customer order management Highly customizable Sophisticated pricing Integrated ATP Integrated credit management Sampling of functions Inquiries & Quotes Sales Orders Returns Contracts & Scheduling Agreements Consignment Rush Orders & Cash Sales Back Orders & Subsequent Deliveries Credit & Debit Memo Requests

8. SD Overview — Shipping Main functions Picking, Packing & Inventory management Generate Shipping Documents Transportation Management Routes Transportation Scheduling Delivery Scheduling, Returns Deliveries & Stock Transfer

9. SD Overview — Billing Invoice Generation — automatic or manual Comprehensive set of billing functions Linked documents — e.g. invoice & credit memo Real-time integration with finance (FI) Fully integrated and comprehensive pricing

10. SD Overview — S I S Flexible tool that allows one to collect, consolidate, and utilize data from sales and distribution processing A component of the Logistic Information System (LIS)

11. Transportation Foreign Trade

12. Sales & Distribution - Process Flow -

13. Supply Chain Process Final Payment Customer Order Picking Goods Issue Billing Accounts Receivable

14. SAP Process Steps Sales Shipping Delivery Note Picking Post Goods Issue Billing Billing FI A/R Post Incoming Payment Quotation Sales Order

15. Sales — Inquiry & Quotation Support pre-sales processes Are time sensitive Automatic availability check Automatic pricing No impact to FI Can be used as reference documents

16. Sales — Sales Order Core of customer order management No impact to G/L Can reference existing documents Copies key information from master data Automated standard functions ... availability check MRP updating pricing credit check delivery scheduling export control shipping & route determination

17. Shipping — Delivery Note Initiates the shipping process Control document for shipping processes — maintains status of each processing step Re-confirms: availability, credit, foreign trade, delivery scheduling Facilitates transportation planning

18. Shipping — Picking & Packing Picking: Physical activity of moving goods from the warehouse for further processing (packing, loading) Packing: Determines packing materials and packing details Advanced processing includes, e.g. batch mgmt., serial number control

19. Shipping — Post Goods Issue Completes the shipping process Typically performed when customer takes ownership Updates inventory Updates G/L accounts Cost of goods sold Inventory

20. Billing Generate customer invoice Updates FI Customer account G/L accounts: revenue, discount, etc. Applies relevant pricing Updates customer credit

21. Sales & Distribution - Organizational Structures -

22. Sales Organization 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

23. Sales Organization Sells and distributes products, negotiates terms of sales and is responsible for these business transactions Critical organization element to the definition of business markets A business transaction is linked to one Sales Organization

24. Distribution Channel Identifies how products and services reach the customer Can be assigned to one or more Sales Organizations

25. Division Often times used to define product line distribution Organization level to which customer specific information and requirements are maintained — e.g. pricing, partial delivery Assigned to one or more Sales Organizations

26. Sales Area Organizational element comprised of: Sales Organization Distribution Channel Division Will be used to link together the organizational aspects of sales to customers Used for statistical analysis

27. Sales Area 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

28. Sales Area 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

29. Sales Office Typically defines a territory or market area Linked to one or more Sales Areas Optional organization structure

30. Internal Sales Organization Domestic Sales Area Western Sales Office Eastern Sales Office

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

32. Sales Person Sales Person Defined in HR — Personnel Admin. Specifically defines an individual rather than a position (sales rep.) in sales processing

33. Internal Sales Organization 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

34. Shipping Point & Loading Point Shipping Point Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point Loading Point A subdivision of the shipping point used for more specialized handling

35. Shipping Organization

36. Sales & Distribution - Master Data -

37. SD Master Data - Core Elements Master Data Customer Material Pricing

38. Material Master — Sales: sales org. 1 - General Data Basic Unit of Measure Division Material Group Sales Unit Delivering Plant Cash discount - Tax data Country Tax category Tax classification - Quantity stipulations Min. order quantity Min. delivery quantity Delivery unit Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

39. Material Master — General Data Base Unit of Measure The Base Unit of Measure is the unit of measure in which stocks are managed within your company. Division You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). Material Group A (freely definable) key that’s used to group several materials or services for analysis/reporting as well as search by match code. Sales Unit This is the unit of measure in which the material is sold, if different from the base unit of measure. Delivering Plant Plant, from which the material is available for sale. This is a default value only. Cash discount Indicator used for materials, which allow for a cash discount.

40. Material Master — Tax data & Quantity stipulations Tax data Country Country Tax category Taxes, applicable to this material (e.g. Federal, State taxes in US, VAT in GB) Tax classification taxable, exempt Quantity stipulations Min. order quantity Min. quantity a customer can order (in base unit of measure). Min. delivery quantity Min. delivery quantity to a customer. Delivery unit Only multiples of this number will be delivered to the customer.

41. Material Master — Sales: sales org. - Grouping terms Matl statistics group Material pricing grp Volume rebate group Acct assignment grp Commission group Item Category group Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

42. Material Master — Grouping terms Matl statistics group Helps to determine which data the system updates in the Logistics Information System (LIS). Material pricing grp A way to group materials with similar pricing conditions. Volume rebate group A material can be assigned to a volume rebate group (e.g. Low Rebate, High Rebate) if the material qualifies for rebate. Acct assignment grp A grouping of materials with the same accounting requirements (used to determine revenue and sales deduction accounts) Commission group Several 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 group A 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.

43. Material Master — Sales: general/plant General data Base unit Gross weight Net weight Avail. Check Shipping data (times in days) Trans. Grp LoadingGrp Packaging material data Matl grp ship. matls General plant parameters Negative stock Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

44. Material Master — General data & Shipping data (times in days) General data Base unit The Base Unit of Measure is the unit of measure in which stocks are managed within your company. Gross weight In Base Units of Measure. Net weight In Base Units of Measure. Avail. Check Tells 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. Grp Transportation groups are groups of materials that have the same transportation requirements. For example, all goods that need refrigeration. Loading Grp Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.

45. Material Master — Packaging material data & General plant parameters Packaging material data Matl grp ship. matls, or Material group shipping materials Freely definable group name, which is used to indicate groups of materials with similar shipping materials, such as liquids or bulk, for example. General plant parameters Negative stock Check mark indicator, which specifies whether negative stock is allowed at that plant.

46. Material Master — Sales texts - Sales texts Text specific to the material and in an appropriate language. Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

47. Account Groups Account group determines which fields are to be used in defining customer master data

48. Field Status Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity — create, change, or display

49. Sales & Distribution - Customer Master -

50. Customer Master

51. Customer Master Centralized data for both SD & FI Segmented into three sections General data - address & communication Company code data (FI) - banking and payment information related to FI Sales data (SD) - pricing, delivery, output The sales data is specific to one sales area and is therefore dependent on the sales organization

52. Customer Master by Sales Area Customer Sales Organization Distribution Channel Division

53. Customer Master — Address & Communication General Data — Address Customer Name Search Term Street address, City, Postal code, Country Language General Data — Communication Telephone, Fax, Data numbers

54. Customer Master — Control Data General data — Control data Account control : Vendor, Authorization Trading partner, Group key Tax information : Tax codes, Fiscal address Country code, City code VAT N, Tax jurisdiction code Equalization tax, Sole proprietor Tax on sls/pur. Reference data / area : International Locator No. Industry: Transport Zone Express station Train station Location code

55. Customer Master — Marketing General Data — Marketing Classification : Nielsen ID Customer classification Industry Industry codes Operating figures : Annual sales Number of employees Fiscal year variant Sales prospecting : Legal status

56. Customer Master — Payment Transactions General Data — Payment Transactions Bank details Country Bank Key Account holder Bank Account Control Key Collection

57. Customer Master — Unloading Point General Data — Unloading points Unloading point Customer factory calendar Default Unloading Point Goods receiving hours

58. Customer Master — Foreign Trade General Data — Foreign trade Country key for export control of customer Table of Denial Orders list (TDO) Special Designated Nationals list (SDN) Diversion High Risk Profile list (DHRP) Usage and Classification

59. Customer Master — Contact Persons General Data — Contact persons Name Telephone number Department First name Form of address (e.g. Mr., Ms.) Function

60. Customer Master — Accounting Information Accounting info Reconciliation Account Sort key Head office Interest calculation Interest indicator Interest calculation frequency Last key date Reference data Buying group Company Code Data Accounting Information

61. Customer Master — Payment Transactions Company Code Data Payment Transactions Payment data: Payment terms Tolerance group Automatic Payment Transactions: Payment methods Alternative payer Lockbox

62. Customer Master — Correspondence Company Code Data Correspondence Dunning data : Dunning procedure Dunning recipient Correspondence : Account number at customer Customer user Payment notices to : Customer Sales Accounting Legal

63. Customer Master — Insurance Company Code Data Insurance Export credit insurance : Policy number Institution number Amount insured Valid until Lead months Deductible

64. Customer Master — Sales Sales Data — Sales area Sales order : Sales district Sales office Sales group Order probability Item proposal Account at customer Pricing / Statistics: Price group Customer pricing procedure Price list type Customer statistical group

65. Customer Master — Shipping S & D Data — Shipping Shipping : Delivery priority Shipping conditions Delivering plant Order combination Batch split allowed Partial Delivery: Complete delivery Partial delivery of item Maximum part deliveries

66. Customer Master — Billing S&D Data — Billing Billing section : Manual invoice maint. Rebate Pricing Billing schedule Invoice list schedule Delivery and payment terms : Incoterms Payment terms Accounting : Account assignment group Taxes: Tax requirements for the customer

67. Customer Master — Partner Functions S&D Data — Partner functions The different partners are assigned SP Sold-to-party BP Bill-to-party PY Payer SH Ship-to-party … additional Partner function(s)

68. Assigning Additional Partners — Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018 Bill-to : 10018 Payer : 10018 Ship-to : 10018 — Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018 Bill-to : 10018 Payer : 10018 Ship-to : 10018 Ship-to : 10249 - Bakersfield, CA Sold-to Payer Ship-to Bill-to Ship-to Sold-to Payer Ship-to Bill-to

69. Sales & Distribution - Business Partners -

70. Business Partners Defines 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 Sold-to Ship-to Bill-to Payer

71. Business Partners The 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. Sold-to Ship-to Bill-to Payer

72. Business partners — Sold-to Customer that orders the goods Can perform all primary partner functions — sold-to, ship-to, payer, bill-to Primary type of business partner Cannot be linked to other sold-to partners Sold-to Ship-to Bill-to Payer

73. Business partners — Ship-to Party that receives the goods Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer

74. Business partners — Bill-to Party that receives the invoice Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer

75. Business partners — Payer Party that sends the payment Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer

76. Business Partners — Example Sold-to Bill-to Payer Sold-to Ship-to Ship-to Ship-to Ship-to Ship-to Ship-to

77. Sales & Distribution - Pricing -

78. Pricing “World-class” functionality Highly customizable & extendible One of the most complex features of SAP Used to determine the net price for a material or an order

79. Pricing Process Standard 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

80. Pricing Components Pricing is based on a matrix of predefined and custom elements Delivered element groups (a.k.a. conditions) Prices Discounts & Surcharges Freight Taxes

81. Pricing Procedure In short, the mechanism used to arrive at the final price Considers all of the applicable pricing conditions, e.g. material price, customer discount Is assigned by: sales area, sold-to party and sales document type (e.g. sales order)

82. Pricing Procedure The pricing procedure uses what SAP calls “the condition technique”. The pricing condition technique starts with the: Pricing Procedure which looks at Conditions which use Access Sequences which accesses Condition tables which point to A price, discount or other condition ($)

83. R/3 Pricing Process UNIFORM SALES DOC. ITEM DETERMINE PRICING PROCEDURE FOR ITEM PRICE THE ITEM DETERMINE ACCESS SEQUENCE FOR EVERY CONDITION TYPE IN PRICING PROCEDURE ACCESS THE CONDITION RECORDS AND DETERMINE PRICE SALES AREA & DOCUMENT TYPE & SOLD-TO CONDITION TYPE AND ACCESS SEQUENCE ARE LINKED IN TABLE PR00 KI00 TX00 FR00 CONDITION TYPE ACCESS SEQUENCE TX00 FR00 KI00 PR00 - - - $9.25 N/A STOPS LOOKING AFTER FINDING FIRST VALUE ETC . PRICE ELEMENT CONTROL PARAMETERS UPPER/LOWER LIMITS PRICING PROCEDURE USSTD PR00 TX00 KI00 FR00 USALT DISCOUNT CONDITION TYPE CONDITION PRICE FREIGHT TAXES DISCOUNT PRICE KI01 PR00 KEY CUSTOMER/MAT’L OR PRICE LIST/MAT’L OR MATERIAL LOOK FOR CONDITION RECORDS IN THIS ORDER OF CONDITION TABLES ACCESS SEQUENCE 01 02 03 PR00 CUSTOMER / MATERIAL PRICE LIST TYPE/MAT’L MATERIAL OR DER ETC . KI00 01 02 03 CUSTOMER / MATERIAL PRICE LIST TYPE/MAT’L MATERIAL SALES AREA DOC . TYPE SOLD TO PRICING PROCEDURE US01 US01 UK01 UK02 USSTD USALT UKSTD UKSTD A B 1 1 1 1 A A

84. Price Agreements Simple price agreements product customer customer & material customer group & material Detailed price agreements pricing scales rebates customer expected price

85. Specialized Master Data Customer Material Info. Record Item Proposal Listing & Exclusion Product Substitution

86. Customer/Material Info. Record Defines a customer alias for a material & description, for example: Material # : Glove Customer # : Pastime Glove Can further define attributes of the material, shipping and partial delivery information specific to the product and customer Referenced in the sales order using the Ordering Party overview

87. Item Proposal Used to define frequently ordered combinations or special assortments of products and quantities Either products or products with quantities can be selected during order entry An item proposal can be defined for a customer via the customer master record

88. Material Listing & Exclusion Used to control what products are available for a customer or group Material Listing — defines products that can be sold to a customer Material Exclusion — defines products that cannot be sold to a customer

89. Product Substitution Material Determination Enables automatic or manual substitution of materials during sales order processing Examples: substitute a standard product with a promotional material substitute based on a customer preference substitute based on selection list (manual)

90. Customizing For Transactions Shipping Functions Shipping Point Determination The shipping point is determined for each line item based on the shipping point determination shipping point = shipping condition + loading group + delivering plant

91. Customizing For Transactions Shipping Functions Route Definition Route to be traveled and the transit time Generic routes can be used to simply define transit time Route Determination Proposed route = shipping point + destination country + transportation zone + shipping condition

92. Sales & Distribution - Transactions -

93. Business Document Types Inquiry Credit Memo Returns Quotation Sales Order Cash Sale Rush Order Consignment Contract Scheduling Agreement Debit Memo Returnable Packaging

94. Order Processing Functionality Delivery scheduling Availability check Transfer of requirements to MRP Pricing Credit check Shipping point & route determination Foreign trade & license processing Document flow

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

96. Delivery Scheduling Structure of sales documents Header Line item # 1 Line Item # 2 Schedule line # 1 Schedule line # 1 Schedule line # 2

97. Delivery Scheduling — Terminology Transportation lead time — time required to schedule transportation Pick/Pack time — time required for picking and packing Load time — time required to load Transit time — time required to transport goods from shipping point to ship-to

98. Backward Scheduling Requested Delv. Date Goods Issue Loading Material Availability Order Date Transp. Sched. Transit Time (2 days) Loading Time (1 day) Pick & Pack Time (2 days) Transp. Sched. Time (1 day) 25 26th 27th 28th 29th 31st 25th

99. Forward Scheduling Order Date Transit Time (2 days) Loading Time (1 day) Transp. Sched. Time (1 day) New Delv. Date 27th 27th 28th 29th 31st 26th 27 1 Requested Delv. Date Goods Issue Loading Material Availability Transp. Sched. Pick & Pack Time (2 days)

100. Availability Check Determines the material availability date Considers inward and outward movement of inventory — customizable Influences partial deliveries by proposing a quantity that can be delivered on the requested date (complete delivery) determines the earliest date for full delivery determines the number and dates for partial deliveries to fulfill the order

101. Availability Check In determining the material availability date the system can include specific stocks if selected, such as: Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock

102. Transfer of Requirements to MRP Ordered quantities are passed to MRP (MM) Controlled by the schedule line category Blocking of documents can affect requirements passing — delivery block

103. Credit Check Efficient means to implement credit management Integrated with FI — via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting

104. Shipping Point & Route Determination A shipping point is determined for each line item — shipping point determination A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time

105. Foreign Trade & License Processing Predefined trade areas — NAFTA, EU Automated reporting for trade areas Automated controls license management embargo lists control by customer, country, product, point in time

106. Shipping

107. Shipping Overview Comprehensive functionality to support picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management

108. Shipping Overview Order Combination Order Partial Delivery Order Order Order Delivery Delivery Delivery Order Complete Delivery Delivery Delivery

109. Shipping Overview Delivery creation activities checks order and materials to determine if a delivery is possible — delivery block, incompleteness confirms availability confirms export/foreign trade requirements determines total weight & volume

110. Shipping Overview Delivery creation activities generates packing proposal considers partial deliveries updates route assignment assigns picking location determines batches updates sales order — status, delivery qty

111. Deliveries & Delivery Notes The Delivery Note Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities Delivery Note Picking Packing Loading Post Goods Issue Status

112. Delivery Due List Produces a work-list of deliveries Encompasses deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries

113. Picking Quantities based on delivery Assigned date when picking should begin Automated storage location assignment Supports serial number tracking and batch management Integrated with Warehouse Management (WM)

114. Packing Identifies which packaging is to be used for specified products Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced

115. Goods Issue Event that indicates the change in ownership of the products Reduces inventory Automatically updates the G/L accounts Ends the shipping process and prevents changes to the shipping documents

116. Goods Issue General ledger Inventory 750 Cost of goods sold 750

117. Billing Overview Automated invoicing based on sales orders and/or deliveries Functionality for processing credit/debit memos and rebates Integration with FI & CO-PA Updates customer’s credit data Can create pro forma invoices

118. Automatic Account Assignment Defines the G/L accounts that billing entries are posted to — revenue, deduction, freight charges Cust Acct. Grp. 01 Application V Sales Org. SOxx KOFI Chart of Accounts CHRT From Table From Sales Doc. Account Key ERL From Pricing Proc Condition Type 610000 From Table G/L Account From Customer Master From Sales Doc. From Sales Doc.

119. Billing Methods Separate invoice per delivery Delivery Order Delivery Invoice Invoice Delivery Order Delivery Invoice Delivery Order Collective Invoice Order Delivery Invoice Invoice Invoice Split

120. Billing Documents Explicitly specify documents Billing due list — builds a worklist of invoices that should be generated Automatic posting to FI

121. Billing Documents General ledger A/R recon. 2000 Revenue 2000 Customer 2000

122. Billing Plans Periodic — total amount for a planned billing period Milestone — distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment — evenly proportioned amounts and defined payment dates Resource related — consumed resources such as service or consulting

123. SD Milestone Billing Billing Description % Value Billing Milestone Billing date block status 11/20/96 Contract 10 30,000 - x x 01/20/97 Assembly 40 120,000 - x x 04/20/97 Operational 40 120,000 x x 05/20/97 Acceptance 10 30,000 x x 06/20/97 Final invoice -- - - x Sales Order Billing Plan Sold-to : QAZ Industries Delivery Date : 06/20/97 Material : 546-dk1 Generator Price : $300,000

124. Outline Agreements Contracts Schedule Agreements

125. Contracts Defined quantities and validity period for a customer The contract is fulfilled by orders placed against the contract - release orders Contracts are automatically updated through release order processing Pricing can be assigned to a contract

126. Contracts Contract Target Qty: 900 Order Qty: 700 Contract Target Qty: 900 Order Qty: 750 . . . Release Order Order Qty: 200 Release Order Order Qty: 150

127. Scheduling Agreements Defines specific product quantities and delivery dates for a customer Schedule lines and processed through standard delivery processing Availability check is performed during creation and quantities are passed to MRP System automatically updates delivered quantities

128. Scheduling Agreements Scheduling Agreement Date Qty 05/15 100 06/15 100 07/15 200 08/15 300 Delivery 5/10 100 Delivery 6/10 100 Delivery 7/10 200 Delivery 8/10 300

129. Backorders Backorder Processing Rescheduling

130. Backorders Backorder processing determines which orders have unconfirmed quantities by customer or material sort the orders according to priority assign available stock to outstanding orders or reassign confirmed quantities to high-profile orders

131. Backorders Rescheduling updates the orders with the results of the availability check can be used to manage the distribution of available inventory when demand is greater than supply Best if run in batch mode, rescheduling can be very time consuming

132. Customer Returns Return Order Goods Receipt Quality Inspection Credit Memo

133. Customer Returns Order Delivery Invoice Returns Delivery Return Credit Memo 1 2 3 Return to Inventory

134. Customer Returns Returns document Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price Return delivery Issues a goods receipt to place material into inventory

135. Customer Returns Credit memo Billing block must be cleared from Return Posts to FI Can be processed in batch (background) Can be processed collectively (grouped)

136. Output & Text

137. Communication — Output SAP Document FAX Printed Documents Email EDI Bar Coded Documents Workflow

138. Communication — Output Output — traditional forms or electronic communications produced for internal or external partners Assigned to business partners & sales documents Definable media — EDI, fax, print Highly customizable — Sapscript

139. Communication — Text Texts are used for internal and external communication Created for business partners, materials, header or item level of sales documents — order, delivery, billing, picking lists

140. SIS Overview Flexible information system designed to support business planning, forecasting and reporting Pre-defined catalog of performance measures and reports On-demand access to reports and exceptions Data maintained in a separate database

141. Logistics Information System Inventory Management Purchasing Sales and Distribution Production Plant Maintenance Quality Management

142. Inventory Information System Standard Analysis Material Plant Storage Location MRP Controller Material Groupings

143. Purchasing Information System Standard Analysis Material Vendor Material Group Purchasing Group Purchasing Documents

144. Sales Information System Standard Analysis 5 Pre-defined drill-down reports Customer Material Sales Organization Shipping Point SD Documents

145. Production Information System Standard Analysis Product Group Material Work Center Production Resources and Tools

146. Reporting Tools Value display - absolute or percentage Top N - top 10, top 100, etc. Sorted - ascending or descending ABC Classification Graphics - 2D, 3D