sales processs

1. SALES & DISTRIBUTION (SD)SALES & DISTRIBUTION (SD)
OverviewOverview

2. R/3R/3
FIFI
FinancialFinancial
AccountingAccounting
COCO
ControllingControlling
PSPS
ProjectProject
SystemSystem
WFWF
WorkflowWorkflow
ISIS
IndustryIndustry
SolutionsSolutions
MMMM
MaterialsMaterials
Mgmt.Mgmt.
HRHR
HumanHuman
ResourcesResources
SDSD
Sales &Sales &
DistributionDistribution
PPPP
ProductionProduction
PlanningPlanning
QMQM
QualityQuality
ManagementManagement
PMPM
Plant MaintenancePlant Maintenance
SMSM
ServiceService
Manage-Manage-
mentment Integrated SolutionIntegrated Solution
Client / ServerClient / Server
Open SystemsOpen Systems
ECEC
EnterpriseEnterprise
ControllingControlling
AMAM
Fixed AssetsFixed Assets
Mgmt.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. 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. TransportationTransportation
Foreign TradeForeign Trade

12. Sales & DistributionSales & Distribution
- Process Flow -- Process Flow -

13. Customer Order Picking Goods Issue
BillingAccounts ReceivableFinal Payment

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

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 & DistributionSales & Distribution
- Organizational Structures -- 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
DomesticDomestic
Sales AreaSales Area
WesternWestern
Sales OfficeSales Office
EasternEastern
Sales OfficeSales 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
DomesticDomestic
Sales AreaSales Area
WesternWestern
Sales OfficeSales Office
EasternEastern
Sales OfficeSales Office
SouthwestSouthwest
Sales GroupSales Group
NorthwestNorthwest
Sales GroupSales Group
SalesSales
PersonPerson
SalesSales
PersonPerson
SalesSales
PersonPerson
SoutheastSoutheast
Sales GroupSales Group
NortheastNortheast
Sales GroupSales Group
SalesSales
PersonPerson
SalesSales
PersonPerson

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
D o c k # 1
L o a d in g P t
D 1
D o c k # 2
L o a d in g P t
D 2
F r e ig h t D o c k
S h ip p in g P t
S P 0 0
D o c k # 3
L o a d in g P t
E X
E x p r e s s
S h ip p in g P t
Q U I K
D o c k # 2
L o a d in g P t
X P
E x p o r t
S h ip p in g P t
E X P T
S io u x F a lls
P L A N T
P T 0 0

36. Sales & DistributionSales & Distribution
- Master Data -- Master Data -

37. Master
Data
Customer
M
aterial
Pricing

38. -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. 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. 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. -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. 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.

43. 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. 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. 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. - 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 & DistributionSales & Distribution
-- Customer MasterCustomer Master --

50. Customer Master
S a l e s & D i s t r i b u t i o n
D a t a
C o m p a n y C o d e
D a t a
G e n e r a l
D a t a

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

54. 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. 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. General Data —
Payment Transactions
Bank details Country
Bank Key
Account holder
Bank Account
Control Key
Collection

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

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

60. 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. Company Code Data
Payment Transactions
Payment data: Payment terms
Tolerance group
Automatic
Payment
Transactions: Payment methods
Alternative payer
Lockbox

62. 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. Company Code Data
Insurance
Export credit
insurance : Policy number
Institution number
Amount insured
Valid until
Lead months
Deductible

64. 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. 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. 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. 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-toBill-to
Sold-to
Payer Ship-toBill-to Ship-to

69. Sales & DistributionSales & Distribution
-- Business PartnersBusiness 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. Sold-to
Bill-to
Payer
Ship-to
Ship-to
Ship-to
Ship-to
Ship-to
Ship-to
Sold-to

77. Sales & DistributionSales & Distribution
-- PricingPricing --

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
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
UNIFORM
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. • 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 & DistributionSales & Distribution
- Transactions -- Transactions -

93. 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. Requested
Delv. Date
Goods
Issue
LoadingMaterial
Availability
Order
Date
Transp.
Sched.
Transit
Time
(2 days)
Loading
Time
(1 day)
Pick & Pack
Time
(2 days)
Transp
.
Sched.
Time
(1 day)
26th 27th 28th 29th 31st25th
25

99. Requested
Delv. Date
Goods
IssueLoading
Material
Availability
Order
Date
Transp.
Sched.
Transit
Time
(2 days)
Loading
Time
(1 day)
Transp.
Sched.
Time
(1 day) New
Delv. Date
27th 27th 28th 29th 31st26th
27
1
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

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
Order
Order
Delivery
Order
Combination
Order
Delivery
Partial
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. General
ledger
Inventory
750
Cost of goods sold
750
Goods Issue

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.
SOxxKOFI
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. Separate invoice
per delivery
Delivery
Order
Delivery
Invoice
Invoice
Delivery
Order
Delivery Invoice
DeliveryOrder
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
Revenue
2000
A/R recon.
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. 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
Sold-to : QAZ Industries Delivery Date : 06/20/97
Material : 546-dk1 Generator Price : $300,000
Sales
Order
Billing
Plan

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

129. 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. Return
Order
Goods Receipt
Quality Inspection
Credit Memo

133. Order Delivery Invoice
Returns
DeliveryReturn
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)

137. 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