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