SD overview and process flows

Sales and Distribution (SD)
Overview

SAMEER BARDE : SAP CONSULTANT

SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials Controlling
Mgmt.
PP AM

R/3
Production Fixed Assets
Planning Mgmt.
SM EC
Service Enterprise
Manage- Controlling
ment QM Integrated Solution PS
Quality
Management Client / Server Project
System
PM WF
Plant Maintenance Open Systems Workflow
HR IS
Human Industry
Resources Solutions


 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

Master Foreign
Data Trade
Sales
Sales
Sales Info
Support
System
Shipping Billing

Transportation


 Detailed information about customers,
materials and business partners
 Flexible data structures that support the
business environment
 Specialized master data to support sales
order processing


 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


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


 Main functions
 Picking, Packing & Inventory management
 Generate Shipping Documents
 Transportation Management
 Routes
 Transportation Scheduling
 Delivery Scheduling, Returns Deliveries &
Stock Transfer


 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


 Flexible tool that allows one to collect,
consolidate, and utilize data from sales and
distribution processing
 A component of the Logistic Information
System (LIS)


Transportation

Foreign Trade


Sales & Distribution

- Process Flow -


Customer Order Picking Goods Issue

Final Payment Accounts Receivable Billing

Sales Sales
Quotation
Order

Shipping Delivery Post Goods
Picking
Note Issue

Billing Billing

Post
FI
Incoming
A/R
Payment

 Support pre-sales processes
 Are time sensitive
 Automatic availability check
 Automatic pricing
 No impact to FI
 Can be used as reference documents


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


 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


 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


 Completes the shipping process
 Typically performed when customer takes
ownership
 Updates inventory
 Updates G/L accounts
 Cost of goods sold
 Inventory


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



- Organizational Structures -


Client
860

Pastime Corporation
Company Code
CC00

Domestic Sales Europe Asia Pacific
Sales Organization Sales Organization Sales Organization
So00 EURO APAC

Direct Wholesale Retail Wholesale Wholesale
Distribution Channel Distribution Channel Distribution Channel Distribution Channel Distribution Channel
DI WH RE WH WH

Baseball Softball Baseball Softball Baseball Softball Baseball Cricket Baseball
Division Division Division Division Division Division Division Division Division
BB SB BB SB BB SB BB SB BB


 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


 Identifies how products and services reach
the customer
 Can be assigned to one or more Sales
Organizations


 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


 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


Domestic Sales
Sales Organization
SO00

Direct Wholesale Retail
Distribution Channel Distribution Channel Distribution Channel
DI WH RE

Baseball Softball Baseball Softball Baseball Softball
Division Division Division Division Division Division
BB SB BB SB BB SB


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


Domestic
Sales Area

Western Eastern
Sales Office Sales Office


 Sales Group
 Sub-division of a sales office, territory or market


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


Domestic
Sales Area

Western Eastern
Sales Office Sales Office

Southwest Northwest Southeast Northeast
Sales Group Sales Group Sales Group Sales Group

Sales Sales Sales Sales Sales
Person Person Person Person Person


 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


S io u x F a lls
PLANT
PT00

F r e ig h t D o c k E x p re s s E x p o rt
S h ip p in g P t S h ip p in g P t S h ip p in g P t
SP00 Q U IK EXPT

D ock #1 D ock #2 D ock #3 D ock #2
L o a d in g P t L o a d in g P t L o a d in g P t L o a d in g P t
D1 D2 EX XP



- Master Data -


r
me

M
ate
st o
Master

ria
Cu

l
Data

Pricing


-General Data
Basic Data 1 - 2
Basic Unit of Measure Classification

Division Sales: sales org. 1 - 2

Sales: general/plant
Material Group
Purchasing
Sales Unit Foreign Trade: Import Data

Sales: text
Delivering Plant
Purchase order: text
Cash discount MRP 1 - 4

-Tax data Forecasting

Storage 1 - 2
Country
Warehouse Management 1 - 2
Tax category Quality Management

Tax classification Accounting 1 - 2

Costing 1 - 2
-Quantity stipulations
Min. order quantity
Min. delivery quantity
Delivery unit SAMEER BARDE : SAP CONSULTANT

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.


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.


Basic Data 1 - 2

Classification

Sales: sales org. 1 - 2

-Grouping terms Sales: general/plant

Purchasing

Foreign Trade: Import Data
Matl statistics group
Sales: text
Material pricing grp Purchase order: text
Volume rebate group MRP 1 - 4

Acct assignment grp Forecasting

Storage 1 - 2
Commission group
Item Category group
Quality Management

Accounting 1 - 2

Costing 1 - 2


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 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.


Basic Data 1 - 2

Classification
General data Sales: sales org. 1 - 2
Base unit Sales: general/plant

Gross weight Purchasing

Foreign Trade: Import Data
Net weight
Sales text
Avail. Check
Shipping data (times in days) MRP 1 - 4
Trans. Grp Forecasting

LoadingGrp Storage 1 - 2

Packaging material data
Quality Management
Matl grp ship. matls
Accounting 1 - 2
General plant parameters Costing 1 - 2

Negative stock


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.


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.


Basic Data 1 - 2

Classification

Sales: sales org. 1 - 2

Sales: general/plant
- Sales texts Text Purchasing
specific to Foreign Trade: Import Data

the material Sales text

and in an
MRP 1 - 4
appropriate
Forecasting
language. Storage 1 - 2


Quality Management

Accounting 1 - 2

Costing 1 - 2


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


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



- Customer Master -


G e n e ra l
D a ta

S a le s & D is tr ib u tio n Com pany Code
D a ta D a ta


 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


Customer
 Sales Organization
 Distribution Channel
 Division


General Data — Address
Customer Name

Search Term

Street address, City,

Postal code, Country

Language

General Data — Communication
Telephone, Fax, Data numbers


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


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


General Data —
Payment Transactions

Bank details Country
Bank Key
Account holder
Bank Account
Control Key
Collection


General Data —
Unloading points

Unloading point

Customer factory calendar

Default Unloading Point

Goods receiving hours


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


General Data —
Contact persons

Name

Telephone number

Department

First name

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

Function


Company Code Data
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
Payment Transactions

Payment data: Payment terms
Tolerance group

Automatic
Payment
Transactions: Payment methods
Alternative payer
Lockbox


Company Code Data
Correspondence

Dunning data : Dunning procedure
Dunning recipient

Correspondence : Account number
at customer
Customer user

Payment
notices to : Customer
Sales
Accounting
Legal


Company Code Data
Insurance

Export credit
insurance : Policy number
Institution number
Amount insured
Valid until
Lead months
Deductible


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


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


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


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)


— Siesta Baseball League - Vera Cruz, NM —
Sold-to : 10018 Sold-to
Bill-to : 10018
Payer : 10018 Bill-to Payer Ship-to
Ship-to : 10018
— Siesta Baseball League - Vera Cruz, NM —
Sold-to : 10018
Bill-to : 10018 Sold-to
Payer : 10018
Ship-to : 10018 Bill-to Payer Ship-to Ship-to
Ship-to : 10249 - Bakersfield, CA


- 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

 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

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

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


 Party that receives the
invoice
Sold-to
Payer


 Party that sends the
payment
Sold-to
Payer


Sold-to Sold-to

Ship-to Bill-to Ship-to

Ship-to Payer Ship-to

Ship-to Ship-to



- 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


 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


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


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)

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 ($)


R/3 Pricing Process
SALES DOC. DETERMINE ACCESS
DETERMINE PRICING ACCESS THE CONDITION PRICE THE
ITEM SEQUENCE FOR EVERY
PROCEDURE RECORDS AND ITEM
CONDITION TYPE IN
FOR ITEM DETERMINE PRICE
PRICING PROCEDURE

CONDITION TYPE AND ---
SALES AREA & CUSTOMER/MAT’L OR
ACCESS SEQUENCE
UNIFORM DOCUMENT TYPE &
ARE LINKED IN
PRICE LIST/MAT’L OR $9.25
SOLD-TO MATERIAL N/A
TABLE

CONDITION ACCESS STOPS LOOKING AFTER
SALES DOC. SOLD PRICING TYPE SEQUENCE FINDING FIRST VALUE
AREA TYPE TO PROCEDURE KEY PR00 PR00
US01 A 1 USSTD KI00 KI00
US01 B 1 USALT TX00 TX00 LOOK FOR CONDITION
ACCESS OR
FR00 FR00 RECORDS IN THIS ORDER
UK01 A 1 UKSTD SEQUENCE DER
OF CONDITION TABLES
UK02 A 1 UKSTD PR00 01 CUSTOMER/MATERIAL
PRICING CONDITION
CONDITION
PROCEDURE TYPE 02 PRICE LIST TYPE/MAT’L
USSTD PR00 PRICE 03 MATERIAL
KI00 DISCOUNT KI00 01 CUSTOMER/MATERIAL
TX00 TAXES 02 PRICE LIST TYPE/MAT’L
PRICE ELEMENT FR00 FREIGHT 03 MATERIAL
CONTROL PARAMETERS
UPPER/LOWER LIMITS USALT PR00 PRICE
ETC. ETC.
KI01 DISCOUNT

 Simple price  Detailed price
agreements agreements
 product  pricing scales
 customer  rebates
 customer & material  customer expected price
 customer group &
material


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


 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


 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


 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


 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)


 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


 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



- Transactions -


Inquiry Returns

Quotation Contract

Sales Order Consignment
Scheduling
Cash Sale
Agreement
Returnable
Rush Order
Packaging
Debit Memo Credit Memo


 Delivery scheduling
 Availability check
 Transfer of requirements to MRP
 Pricing
 Credit check
 Shipping point & route determination
 Foreign trade & license processing
 Document flow


 Automatic scheduling of essential shipping
activities ...
Calculated using defined activity times ...
Resulting in scheduled activity dates

 Determined using backward and forward
scheduling rules


 Structure of sales documents

Header
Line item # 1
Schedule line # 1
Schedule line # 2
Line Item # 2
Schedule line # 1


 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


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

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

 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


 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


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


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


 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


 Predefined trade areas — NAFTA, EU
 Automated reporting for trade areas
 Automated controls
 license management
 embargo lists
 control by customer, country, product, point in
time


 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


Order Order Order
Order
Delivery
Order
Delivery Delivery
Delivery
Delivery
Order Partial Complete
Combination Delivery Delivery


 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


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


 The Delivery Note
 Initiates the delivery process
 Control mechanism for the process
 Changes to delivery are allowable - products, quantities

Picking

Delivery Packing
Note Status
Loading
Post Goods
Issue

 Produces a work-list of deliveries
 Encompasses deliveries and transfers
 Can be scheduled to run in batch
 Automatically combines deliveries


 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)


 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


 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


Goods Issue

Inventory Cost of goods sold
General
ledger 750 750


 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


 Defines the G/L accounts that billing entries are
posted to — revenue, deduction, freight charges

Application Condition Chart of Sales Cust Account G/L
Type Accounts Org. Acct. Key Account
Grp.
V KOFI CHRT SOxx 01 ERL 610000

From From From From From From From
Sales Table Sales Sales Customer Pricing Table
Doc. Doc. Doc. Master Proc


Delivery Invoice
Separate invoice Order
per delivery Delivery Invoice

Delivery
Collective Order
Delivery Invoice
Invoice
Order Delivery

Invoice Invoice
Order Delivery
Split Invoice

 Explicitly specify documents
 Billing due list — builds a worklist of invoices
that should be generated

 Automatic posting to FI


Revenue Customer A/R recon.
General
2000 2000 2000
ledger


 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


Sales Sold-to : QAZ Industries Delivery Date : 06/20/97
Order Material : 546-dk1 Generator Price : $300,000

Billing Description % Value Billing Milestone Billing
date block status
11/20/96 Contract 10 30,000 - x x
Billing 01/20/97 Assembly 40 120,000 - x x
Plan 04/20/97 Operational 40 120,000 x x
05/20/97 Acceptance 10 30,000 x x
06/20/97 Final invoice -- -- x


• Contracts
• Schedule Agreements


 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


Contract
Target Qty: 900
Release Order
Order Qty: 700
Order Qty: 200
.
.
.

Contract
Target Qty: 900 Release Order
Order Qty: 750 Order Qty: 150


 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


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

Backorder Processing
Rescheduling


 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


 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


Return
Order
Goods Receipt
Quality Inspection

Credit Memo

1 Order Delivery Invoice

Returns Return to
2 Return Delivery Inventory

3 Credit
Memo


 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


 Credit memo
 Billing block must be cleared from Return
 Posts to FI
 Can be processed in batch (background)
 Can be processed collectively (grouped)


Printed
Bar Coded Documents
Documents

FAX
SAP
Email
Document
EDI

Workflow

 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


 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


 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


 Inventory Management
 Purchasing
 Sales and Distribution
 Production
 Plant Maintenance
 Quality Management


 Material
 Plant
 Storage Location
 MRP Controller
 Material Groupings


 Material
 Vendor
 Material Group
 Purchasing Group
 Purchasing Documents


 5 Pre-defined drill-down reports
 Customer
 Material
 Sales Organization
 Shipping Point
 SD Documents


 Product Group
 Material
 Work Center
 Production Resources and Tools


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


SD overview and process flows

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