SAP University Alliances Version 2.20 Authors Bret Wagner Stefan Weidner Sales and Distribution (SD) Product SAP ERP 6.0 EhP4 Global Bike Inc. Inc Level Beginner Focus Cross-functional integration Sales and Distribution © SAP AG SAP ERP Course Overview Introduction to SAP Navigation Introduction to GBI Sales & Distribution Materials Management Production Planning Financial Accounting Controlling Human Capital Management Warehouse Management Project System Page 4-2 SAP ERP Functionality Sales Support Sales Shipping and Transportation Billing g Credit Management Foreign Trade Page 4-3 SAP ERP Unit Overview SD Organizational Structure SD Master Data SD Processes - Order-to-Cash Process Page 4-4 SAP ERP Client - An organizational entity which grants and monitors a credit limit for customers. It can include one or more company codes Sales Organization - Smallest org unit for which you can maintain a legal set of books Credit Control Area - An independent environment in the system Company Code - SD Organizational Structure An organizational unit responsible for the sale of certain products or services. The responsibility of a sales organization may include legal liability for products and customer claims Distribution Channel - The way in which products or services reach the customer Typical examples of distribution channels are wholesale, retail, or direct sales Page 4-5 SAP ERP SD Organizational Structure Division - A way of grouping materials, products, or services Sales Area - Combination of Sales Organization, Distribution Channel and Division - Determines conditions (i (i.e. e pricing) for sales activities Plant (here: Delivering Plant) - Plant from which the goods should be delivered to the customer Other SD organization units: - Shipping Point Loading Point Sales Office Sales Group Sales Person Page 4-6 SAP ERP GBI Structure for Sales and Distribution Client Global Bike Global Bike Inc. US West San Diego Global Bike Germany GmbH US East Dallas Miami Germany North Hamburg Company Code Germany South Sales Organization g Heidelberg Sales Office Page 4-7 SAP ERP GBI Enterprise Structure in SAP ERP (Sales) Di t ib ti Distribution Ch Channell Wh Wholesale l l WH Distribution Channel Internet IN US West CA West DE North GB North AU North UW00 CW00 DN00 GN00 AN00 US East CA East DE South GB South AU South UE00 CE00 DS00 GS00 AS00 CC GB00 CC AU00 CC US00 CC CA00 CC DE00 Sales S l Organization Company Code Credit Control Area (global) GL00 Client GBI Page 4-8 SAP ERP SD Master Data Customer Master M t i l Master Material M t Sales Condition Page 4-9 SAP ERP Customer Master - - Customer Master Data Contains all of the information necessary for f processing i orders, d deliveries, invoices and customer payment Every customer MUST have a master record Created by Sales Area - Sales Organization Distribution Channel Division Page 4-10 SAP ERP Customer Master Data The customer master information is divided into 3 areas: - General Data Company Code Data Sales Area Data Page 4-11 SAP ERP Customer Master General Information relevant for the entire organization: Client XXX Company Code specific information: Company Code US00 Acc. Mgmt Payment Bank Company Code DE00 Name Address Communication Sales Area specific information: Sales Office Currency Sales Org. UW00 Sales Org. DS00 Page 4-12 SAP ERP Material Master Data Material Master - - Contains all the information a company needs d tto manage about b t a material It is used by most components within the SAP system • • • • • • - Sales and Distribution Materials Management Production Plant Maintenance Accounting/Controlling Quality Management Material master data is stored in functional segments called Views Page 4-13 SAP ERP Material Master Views Sales Data Basic Data Purchasing Data Mat. Plan. Data Material Master Forecasting Data Storage Data Controlling Data Quality Data Accounting Data Page 4-14 SAP ERP Material Master General Ge e a Information o at o relevant e e a t for o tthe ee entire t eo organization: ga at o Client XXX Sales specific information: Name Weight Unit of Measure Storage Location specific information: Delivering Plant Loading Grp Sales Org. UW00 Sales Org. UE00 Stock Qty Storage Loc. FG00 Storage Loc. TG00 Page 4-15 SAP ERP Condition master data includes: - Prices Surcharges Discounts Freights Taxes You can define the condition master to be dependent on various data: - Condition Master Data (Pricing) Material specific Customer specific Conditions can be dependent on any document field Page 4-16 SAP ERP Output is information that is sent to the customer using various media, di such h as: - Output E-mail Mail EDI Fax XML Output examples: - Quotation Confirmation Invoice Page 4-17 SAP ERP Sales Order Process Pre-sales Activities Sales Order Entry Check Availability Pick Materials Receipt of Customer Payment Invoice Customer Pack Materials Post Goods Issue Page 4-18 SAP ERP Pre-Sales Activities (CRM Light) Sales Support is a component of SD that assists in the sales, distribution, and marketing of a companies products and services to its customers. It contains the following functionality: - Creating and tracking customer contacts and communications (sales activity) • • • • Phone callll records Ph d On-site meeting Letters Campaign communication - Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes Pre-sales documents need to be managed within the presales activities: Inquiries and Quotations. These documents help identify possible sales related activity and determine sales probability probability. Page 4-19 SAP ERP Pre-Sales Activities (CRM Light) The ultimate goal of all presales activities is to equip the sales technician with all the information necessary to negotiate and complete the potential t ti l sale. l Information needed: - Past sales activityy Past communication Contact information General Company p y info Credit limits and usage Current backorders 360º view of your customer Page 4-20 SAP ERP Inquiry An inquiry is a customer’s request to a company for information or quotation in respect to their products or services without obligation to p purchase. - How much will it cost - Material/Service availability - May contain specific quantities and dd dates t The inquiry is maintained in th system the t and d a quotation t ti is i created to address questions for the potential customer. Page 4-21 SAP ERP Quotation The quotation presents the customer with a legally binding offer ff to t deliver d li specific ifi products d t or a selection of a certain amount of products in a specified timeframe at a p pre-defined p price. Page 4-22 SAP ERP Sales Order Sales order processing can originate from a variety of documents and activities - Customer contacts us for order: phone, internet, email - Existing Contract - Quotations The electronic document that is created should contain the following basic information: - Customer Information Material/service and quantity Pricing (conditions) Specific delivery dates and quantities Shipping information Billing Information Page 4-23 SAP ERP Sales Order The sales document is made up of three primary areas: - Header • Data relevant for the entire sales order: Ex: customer data, total cost of the order - Line Item(s) • Information about the specific product: Ex: material and p quantity, cost of an individual line - Schedule Line(s) • Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries Page 4-24 SAP ERP Sales Order The sales order contains all of the information needed to process your customers request, the following information is determined for each sales order: - Delivering Schedule Shipping point and route determination Availability Check Transfer of requirements to MRP Pricing Credit limit check Page 4-25 SAP ERP Delivery Scheduling When an order is created you must enter a requested delivery date for the order or each line item. The system will then determine a delivery timeline, this will be used when h d determining t i i our material t i l availability, il bilit or ATP (A (Availability il bilit tto Promise) date. The system will determine this date using forward and backward scheduling rules you have defined. Page 4-26 SAP ERP Order Date 1st Backward Scheduling Material Availability 2nd Pick & Pack Time (2 days) Transp. Sched. 3rd Transp. Sched. Time (1 day) Loading 4th Loading Time (1 day) Goods Issue 5th Requested Delv. Date 6th Transit Ti Time (2 days) Page 4-27 SAP ERP Order Date Forward Scheduling Transp. Material Availability y Sched. 1st Pick & Pack Time (2 days) 2nd 3rd Loading Goods Issue 4th 5th Transp. Sched. Time (1 day) Loading Time (1 day) Requested New Delv. Delv. Date Date 6th 7th Transit Time (2 days) Page 4-28 SAP ERP Shipping & Route Determination During the creation of the sales order the system must determine the shipping point from which the material will be shipped and the route the material will take to get from your warehouse to your customers location. A shipping point is determined for each line item within the order. The route determination is used to define the transit time of the material that we used in scheduling. Page 4-29 SAP ERP Availability Check - Determines the material availability il bilit date d t Considers all inward and outward inventory movements Proposes 3 methods of delivery - Availability Check One-time delivery Complete delivery Delayed y p proposal p Rules are created by YOU Page 4-30 SAP ERP Pricing The system displays pricing information for all sales documents on the pricing screens at both the header and the line item level. - Header pricing is valid for the whole order it is the cumulative of all line items within the order - Line item pricing is for each specific material. The system will automatically search for price, discounts, surcharges, g , calculate taxes and freight. g You have the ability y to manually manipulate the pricing at both the header and line item level within the sales order by entering a condition type and amount. - Taxes and freight can be set-up so we can’t manually enter Page 4-31 SAP ERP Credit Check Allows your company to manage its credit exposure and risk for each customer by specifying credit limits. During the sales order process the system will alert the sales rep about the customers credit situation that arises, if necessary the system y can be configured g to block orders and deliveries. Page 4-32 SAP ERP Shipping & Transportation The shipping process begins when you create the delivery document for the sales order. This document controls, supports, and monitors numerous sub-processes for shipping processing: - Picking - Packing - Post Goods Issue Integrated with the Material Management (MM) and Finance (FI) modules Page 4-33 SAP ERP Shipping Sales Order 1 Sales Order 4 Sales Order 2 Delivery 8…13 8 13 Sales Order 3 Delivery 8…14 Delivery 8…12 Order Combination Sales Order 5 Delivery 8…16 Delivery 8…15 Partial Delivery Complete Delivery Page 4-34 SAP ERP Delivery Creation Checks order and materials to determine if a delivery is possible — delivery block (hold), completeness Confirms availability Confirms export/foreign trade requirements Determines total weight & volume Page 4-35 SAP ERP Delivery Creation Generates packing proposal Calculates weight and volume Checks scheduling Considers p partial deliveries Updates route assignment Assigns picking location Updates sales order Determines batches Quality check (if needed) Updates sales order Page 4-36 SAP ERP Delivery Document The Delivery Document initiates the delivery process and is the control mechanism for this process - Picking Packing Loading Posting Goods Issue Changes to delivery are allowable - products, quantities Page 4-37 SAP ERP Picking Quantities based on delivery note Assigned date when picking should begin Automated storage location assignment Supports pp serial number/lot number tracking g and batch management Integrated with Warehouse Management (WM) Page 4-38 SAP ERP Loading and Packing Identifies which packaging is to be used for specified products (customer preference and UCC-128 considerations) Identifies and updates accounts associated with returnable packaging Tracks T k the th packed k d product d t by b container t i Insures weight/volume restrictions are enforced All packed items are assigned to the required means of transportation Page 4-39 SAP ERP Goods issue Event that indicates the legal change in ownership of the products Reduces inventory and enters Cost of Goods Sold Automatically updates the General Ledger (G/L) accounts Ends the shipping pp g p process and updates p the status of the shipping pp g documents Page 4-40 SAP ERP Billing The billing document is created by coping data from the sales order and/or delivery document. - Order-based billing - Delivery-based billing The billing process is used to generate the customer invoice invoice. It will update the customer’s credit status. Page 4-41 SAP ERP Billing Documents The billing document will automatically create a debit posting to your customer sub-ledger account and credit your revenue account. It is at this point that the sales process is passed over to Financial Accounting g to await p payment. y Page 4-42 SAP ERP Billing Methods Delivery based Invoicing Delivery 8 8…20 20 Invoice 9 9…45 45 Delivery 8…21 Invoice 9…46 Order 6 Delivery 8…33 Collective Invoicing Order 9 Deliveryy 8…34 Order 14 Split Invoicing Invoice 9…68 Delivery 8…56 Invoice 9…91 Order 32 Delivery 8…86 Invoice 9…92 Page 4-43 SAP ERP Payment Payment is the final step in the sales order process, this step is managed by the Financial Accounting department. Final payment includes: - Posting payments against invoices. - Reconciling differences between payment and invoice invoice. Payment will create a posting clearing the liability in the A/R account and increases your bank account. Page 4-44 SAP ERP Document Flow The document flow and order status feature allows you to find the status of an order at any point in time. The SAP updates the order status every ti time a change h iis made d tto any d documentt created t d iin th the customer t order d management cycle (Order-to-Cash). Page 4-45 SAP ERP Sales Order Process Debugging “Never again did I learn so much in such a short time, because twenty participants p p made mistakes for me! You cannot make so many mistakes all alone” alone SAP Co-founder Klaus Tschira on his experiences teaching COBOL to clients at IBM Page 4-46 SAP ERP Document Flow - Sales Order Process Debugging Gives Order Process Status List of Sales Orders (VA05) - Tool to Find Order Need student’s user id/data set number Page 4-47