CASE STUDY
Sales and Distribution (SD)
Case Study
This case study explains an integrated sales and distribution process in
detail and thus fosters a thorough understanding of each process step and
underlying SAP functionality.
Product
MOTIVATION
PREREQUISITES
SAP ERP
G.B.I.
Release 6.04
(Modified by Villanova
University)
The data entry requirements in the
sales & distribution were minimized
because much of the data was
stored in the SAP system. This
stored data, known as master data,
simplifies the processing of
business transactions.
Before you use this case study, you
should be familiar with navigation in
the SAP system.
Level
Undergraduate
Graduate
Beginner
Focus
In the sales order process, we
used master data for customers,
materials (the products we sold)
and pricing to simplify the sales
order process.
NOTES
This case study uses the Global Bike
Inc. (G.B.I.) data set, which has
exclusively been created for SAP UA
global curricula.
Sales and Distribution
Authors
Bret Wagner
Stefan Weidner
In this case study, we will create
the master data for a new
customer.
Version
2.1
VU Version 1.0
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CASE STUDY
Process Overview
Learning Objective Understand and perform an integrated order-to-cash cycle.
Time 90 min
Scenario In order to process a complete order-to-cash process you will take on different roles
within the GBI (Global Bikes Inc.) company, e.g. sales agent, warehouse worker, accounting
clerk. Overall, you will be working in the Sales and Distribution (SD), the Materials Management
(MM) and the Financial Accounting (FI) departments.
Employees involved David Lopez (East Rep. Miami)
Sandeep Das (Warehouse Supervisor)
Sergey Petrov (Warehouse Supervisor)
Stephanie Bernard (Billing Clerk)
Jamie Shamblin (Cost Accountant)
You start the sales order process by creating a new customer (The Bike Zone)
in Orlando. You then create a sales order for this customer for two different
types of bikes. As you will have enough bikes in stock, you deliver the
products sold to your customer, create an invoice and receive the payment.
Process description
The graphic below displays the complete process (9 tasks).
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CASE STUDY
Exercise Overview
Learning Objective To provide you a quick overview of the importance of your assigned data
set number.
Scenario In this exercise, you will be processing a customer order for the fictitious GBI
Company. GBI has many products but you will sell to the customer Bike Zone 2 different bikes.
Within each client of this ERP system, there are 100 copies of the GBI data. You have been
assigned to one of these sets of data, defined by your three digit Data Set Number, which tells
you which set of data you should be using within your client. To complete the exercise, you need
to use only your data.
IT IS CRITICAL THAT YOU USE ONLY YOUR DATA SET. FAILURE TO DO SO WILL
CAUSE YOU PROBLEMS AS WELL AS OTHERS IN YOUR CLASS. WILLINGLY
TAMPERING WITH OTHER STUDENT DATA IN THIS COURSE WILL HAVE SEVERE
PENALTIES.
All of the data in the GBI database begins with a Data Set Number. For example, the bikes you sell
will have a material number that ends in your data set number such as DXTR1### or PRTR1###.
Having a specific data set number also allows you to use the search function in SAP to find your
particular customer. In the instructions that follow, the pound symbol (###) will be used to represent
the Data Set Number. You will need to replace the ### with your Data Set Number. Note that many
of the screen shots in the instructions were created using Data Set Number 000, which is reserved for
the instructor. Do not use Data Set Number 000 in any transactions.
Use of another group’s data set number or request for a new data set will result in a loss of points for
the assignment.
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CASE STUDY
SAP GUI Overview
Learning Objective To provide you important tips on how to use the SAP GUI and complete this
exercise sucssessfully.
Scenario The SAP GUI has a few tips and tricks that you should be aware of before beginning
this exercise.
This exercise requires the use of the
standard SAP menu. Therefore, before
proceeding with the exercise, be sure you
are viewing the SAP menu rather than the
Favorites menu. To toggle to the SAP
menu, choose the SAP menu button:
SAP software communicates the status of
an action in a pop-up window or at the
bottom of the screen. Reacting to a popup window is easy. Knowing to look or
view the messages at the bottom of the
screen is not as automatic. There are
steps in this exercise that require you to
review the messages displayed at the
bottom of the screen. Please do not
proceed until you review the messages.
Messages to the
user appear here!
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CASE STUDY
Create New Customer
Task Create a new customer.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a new customer.
Name (Position) David Lopez (East Rep. Miami)
In this case study, we will create the master data for a new customer.
Master data is considered reference data or data that is used often in
reference to a business entity like a customer or a product. Master data
does not change often because its consistent use across the organization is
critical. A customer’s contact data is a great example of master data. It does
not change often, is not transactional in nature, but its accuracy is crtical to
many business processes.
To create a new customer, follow the menu path:
Menu path
Logistics ► Sales and Distribution ► Master Data ► Business
Partner ► Customer ► Create ► Complete
This will produce the following screen.
Select Sold-to Party for the Account group. Enter US00 for Company
code, UE00 for Sales Organization, WH for Distribution Channel
(wholesale distribution), and BI for Division (bicycle division). After
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US00
UW00
WH
BI
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CASE STUDY
clicking on
, the following screen will appear:
Select Company as Title, enter The Bike Zone for Name and ### for
Search term 1. Remember to replace ### with your three-digit number, e.g.
003 if your number is 003. Then, (you may need to scroll down) enter 2144
N Orange Ave for Street, 32804 for Postal Code, Orlando for City, US for
Country, and FL for Region.
Company
The Bike Zone
###
2144 N Orange Ave
Orlando, FL 32804
US
At the top of the screen, click on Company Code Data and it will produce
the following screen:
Enter 110000 for Recon. account (reconciliation account) and 001 for Sort
key. Then click on the Payment Transactions tab.
Enter 0001 for Terms of payment and click on the Sales Area Data button
(top of screen) and choose the Shipping tab. The following screen will
appear:
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110000
001
0001
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CASE STUDY
As shown above, enter 02 (normal) for Delivery Priority, 01 (standard) for
Shipping Conditions, and MI00 for Delivering Plant (note that it is an “I”
following the “M” not a one). Then click on the Billing Documents tab.
As shown below, enter FOB and Miami for Incoterms, 0001 for Terms of
payment, 01 for Acct. assgmt group and 0 for Tax classification for all
three categories. VERY IMPORTANT TO GET THESE 3 DATA
POINTS RIGHT OR YOU WILL NOT BE ABLE TO CLOSE THE
ORDER.
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02
01
MI00
FOB
Miami
0001
01
0
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CASE STUDY
Click on the save icon
.
The SAP system pops up a new window, expecting you to create another
new client. Before canceling this pop-up window, view the content of the
SAP system window (this may require moving the pop-up window aside).
At the bottom of the window, the SAP system will have indicated the
creation of a master record for the new customer and assign the customer a
unique customer number.
Customer number
Question 1:
You just created a new customer. What is this customer’s number that will
be used to uniquely identify The Bike Zone?
Click on the cancel icon
SAP Easy Access screen.
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found on the pop-up window to return to the
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CASE STUDY
Create Sales Order
Task Create a sales order.
Time 20 min
Short Description Use the SAP Easy Access Menu to create a sales order.
Name (Position) David Lopez (East Rep. Miami)
The Bike Zone has called to place an order for bikes. The sale representative
for this account creates the standard sales order.
To create a sales order, follow the menu path:
Logistics ► Sales and Distribution ► Sales ► Order ► Create
Menu path
This will produce the following screen.
Enter Order Type OR, UE00 for Sales Organization, WH for Distribution
Channel and BI for division. Then, click the enter icon . This will produce
the following pop-up search window.
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OR
UE00
WH
BI
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CASE STUDY
Click on the Sold-to party field, then click on the search icon
bring up the following search screen.
, which will
Because you have defined a search term when we created our new customer,
we can now use it to find your newly created customer The Bike Zone.
Click on the Customers (general) tab, enter ### for search term and Orlando
for City. Then, click on . This will produce the new customer.
###
Orlando
Double-click on The Bike Zone to select it. (Note: The Sold-To Party number
should correspond to the customer number you created and wrote down for
Question 1.)
Enter ### for PO Number and today’s date for the PO date (mm/dd/yyyy).
Click on the enter icon .
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###
mm/dd/yyyy
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CASE STUDY
The Bike Zone wants to purchase on two products – the Deluxe Touring Bike
(black) and the Professional Touring Bike (black). These items need to be
added to the sales order.
To find these products, we need to use the search function. Click on the
Material field and then click on the search icon .
Use the far-right icon
to select the tab Sales material by description.
On the Sales material by description tab, enter Sales Organization UE00,
Distribution Channel WH and Material *### (e.g. *005 if your number is
005). Then click on
to get the list of bicycles.
UE00
WH
*###
Double-click on the Deluxe Touring Bike (black) to select it and enter an
order quantity of 5 pieces.
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CASE STUDY
Repeat the process to enter a quantity of 2 of the Professional Touring Bike
(black).
Click on the enter icon
to determine the price for this order.
Question 2:
Review the Net Value amount listed at the top of the sales order. What is the
current price (net value) for this order?
To encourage The Bike Zone to become a loyal customer, you have been
authorized to give a $50.00 discount on each Deluxe Touring bike.
To add the $50.00 discount on a particular item, select the item (make sure the
row with the item is highlighted) – in this case the Deluxe Touring bike line
item – and then click on the Item conditions icon
(see the icon list at the
bottom of the screen). You will get a screen that shows the pricing details for
your Deluxe Touring Bike.
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CASE STUDY
In SAP, pricing is done using conditions. The pricing procedure defines which
condition types are to be used to calculate the final price. Condtion type PR00
is a gross price condition. To add a discount, we can add condition type K004
(material discount) with a value of 50 (under Amount column) to the pricing
procedure
After entering or clicking on the enter icon
Touring bikes will be calculated.
K004
50
, a new price for the 5 Deluxe
Note that the discount is now applied to the order.
Question 3:
What is the total profit to be made on this order of 5 Deluxe Touring bikes?
Click on the back icon
to return to the sales order screen.
Question 4:
After applying the discount, what is the net value of the sales order?
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CASE STUDY
Click on
number.
to save the sales order. The SAP system will assign a sales order
Question 5:
What is the sales order number you just created?
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Check Stock Status
Task Check the inventory.
Time 5 min
Short Description Use the SAP Easy Access Menu to check the stock status.
Name (Position) David Lopez (East Rep. Miami)
We can check on the inventory level of the bikes in the sales order for
The Bike Zone. To do this, follow the menu path:
Menu path
Logistics ► Materials Management ► Inventory Management ►
Environment ► Stock ► Stock Overview
This will produce the following screen.
To find the material number for your bikes, click on the Material field,
then click on the search icon .
Use the far-right icon
to select the tab Sales material by description.
Enter UE00 for Sales Organization, WH for Distribution Channel and
Material *### (e.g. *002 if your number is 002). Then click the enter
icon
to find the list of materials.
UE00
WH
*###
Double-click on the Deluxe Touring Bike (black) to select it.
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CASE STUDY
With the material number entered from the search list, enter MI00 for
Plant (note that it is the letter “I” and not a one). Then click on the
execute icon
(top of screen below screen title) to look at the stock
level.
MI00
This report gives stock levels for the DC (distribution channel) in
Miami.
You can get more detail on the stock of black Deluxe Touring bikes.
Select the Miami DC, then click on the
Detailed Display button/icon,
just above the detailed listing of stock. This will give you very specific
information about the inventory of black Deluxe Touring bikes.
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CASE STUDY
Note the 5 bikes that are part of the sales order. Click on the enter icon
to close the Detailed Display window, then click on the back icon
to return to the main screen.
Use the search function to enter the material number for the Professional
Touring bike (black). Click on the execute icon
and review the stock
level for this bike.
Question 6:
What is the current inventory level for the Professional Touring bike
(black)?
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Start Delivery Process
Task Start the delivery process.
Time 5 min
Short Description Use the SAP Easy Access Menu to start the delivery process.
Name (Position) Sergey Petrov (Warehouse Supervisor)
To start the process that will fulfill The Bike Zone’s order, we need to
create a delivery document. To do this, follow the menu path:
Menu path
Logistics ► Sales and Distribution ► Shipping and Transportation
► Outbound Delivery ► Create ► Single Document ► With
Reference to Sales Order
This will produce the following screen.
Enter MI00 for Shipping Point. Enter a selection date one week from
today (you can use F4 to call up the calendar window).
MI00
one week from today
If the sales order number is not entered automatically use the value you
recorded for Question 5.
Click on the enter icon
screen will appear:
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. After selecting the Picking tab, the following
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CASE STUDY
This screen shows that the order has not yet been picked. In other words,
the bikes have not been removed from inventory.
To intiate the picking process, click on . A delivery document will be
created with a unique document number
Question 7:
What is the Outbound Delivery document created for your sales order?
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Check Stock Status
Task Check the inventory.
Time 5 min
Short Description Use the SAP Easy Access Menu to check the stock status.
Name (Position) Sergey Petrov (Warehouse Supervisor)
To check on the inventory for the bikes in the sales order for The Bike
Zone, follow the menu path:
Menu path
Logistics ► Materials Management ► Inventory Management ►
Environment ► Stock ► Stock Overview
This will produce the following screen.
See that the Materiel field has the material number DXTR1### (NOT
PRTR1###) that is the unique identifier for Deluxe Touring Bike (black).
Then, enter MI00 in the Plant field.
DXTR1###
MI00
When the Material and the Plant field are correctly filled (compare with the
screenshot above), click on . This will produce the following screen.
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CASE STUDY
Select the Miami DC (click on the text), then click on the
Display icon.
Detailed
Note that the 5 bikes for The Bike Zone order are now shown as Schd. for
delivery (you may need to scroll down to see this). Click on the enter icon
to close the Detailed Display window.
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Pick Materials on Delivery Note & Post the Goods Issued
Task Pick materials on delivery note.
Time 5 min
Short Description Use the SAP Easy Access Menu to pick materials.
Name (Position) Sandeep Das (Warehouse Supervisor)
To record the picking of the material, we change the delivery document. To
change the delivery document, follow the menu path:
Menu path
Logistics ► Sales and Distribution ► Shipping and Transportation ►
Outbound Delivery ► Change ► Single Document
This will produce the following screen.
If the Outbound Delivery document number is not entered automatically, you
can search for your delivery document or reference the Outbound Delivery
document number you recorded in Question 7.
After clicking on the enter icon
, you will get the following screen.
Click on the Picking tab, then enter FG00 for SLoc (storage location) in the
table and the appropriate quantity for the picked quantity (5 for DXTR1###
and 2 for PRTR1###). Note that the Picked Qty column is different from the
Deliv. Qty column
FG00
5
2
Click on
to save the picking information. You should get the following
message at the bottom-left corner of the screen.
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CASE STUDY
To post the goods issue (change the possession of the material from Global
Bikes to The Bike Zone), click Post Goods Issue button.
Again you will see the following message at the bottom-left corner of the
screen:
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Check Stock Status
Task Check the inventory.
Time 5 min
Short Description Use the SAP Easy Access Menu to check the stock status.
Name (Position) Sandeep Das (Warehouse Supervisor)
To see the impact that the goods issue for the bikes in the sales order for
The Bike Zone has had on the inventory position of GBI, follow the menu
path:
Menu path
Logistics ► Materials Management ►Inventory Management ►
Environment ► Stock ► Stock Overview
This will produce the following screen.
See that the Materiel field has the material number DXTR1###, the unique
identifier for Deluxe Touring Bike (black). Then, enter MI00 in the Plant
field.
DXTR1###
MI00
When the Material and the Plant field are correctly filled (compare with the
screenshot above), click on . This will produce the following screen.
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CASE STUDY
Note that the available inventory has changed. Select the Miami DC. Click
on the Detailed Display icon.
The inventory is reduced from before by the amount that used to appear as
Schd. for delivery. Click on the enter icon
to close the window.
Question 8:
What is the inventory level for Professional Touring Bike (black) whose
material number is PRTR1###?
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Create Invoice for Customer
Task Create a billing document for a customer.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a customer billing document.
Name (Position) Stephanie Bernard (Billing Clerk)
With the delivery complete, the customer can be invoiced. To do this,
follow the menu path:
Menu path
Logistics ► Sales and Distribution ► Billing ► Billing Document ►
Process Billing Due List
This will produce the following screen.
Enter UE00 for Sales Organization and The Bike Zone customer number
for Sold-To Party. (Note: You documented the customer number in
Question 1.)
Then, click on the
following screen.
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UE00
customer number
Display Bill List icon. This will produce the
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CASE STUDY
See that the document is selected (the row is highlighted) and click on
Individual billing document, which will produce the following screen:
Click on the save icon
to return to the Maintain Billing Due List screen.
Note that the highlight is turned off on the line, and there is a message at
the bottom of the screen.
Click on the exit icon
Easy Access screen.
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and again on the exit icon
to return to the SAP
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CASE STUDY
Post Receipt of Customer Payment
Task Post a customer payment receipt.
Time 10 min
Short Description Use the SAP Easy Access Menu to post a customer payment receipt.
Name (Position) Jamie Shamblin (Cost Accountant)
After The Bike Zone mails its payment and Global Bikes needs to record
receipt of payment. To do this, follow the menu path:
Menu path
Accounting ► Financial Accounting ►Accounts Receivable ►
Document Entry ► Incoming Payments
This will produce the following screen.
Use F4 and Enter to enter the current date for the document date. Enter
US00 for Company Code, USD for Currency/Rate, 100000 for Account
under Bank Data, and 21150 (no commas) for amount.
current date
US00
USD
100000
21150
Under Open item selection, for the Account field enter The Bike Zone
customer number. Note that you documented The Bike Zone customer
number in Question 1.
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CASE STUDY
Click on the Process open items button. You will get the following screen.
Click on the save icon
to post the payment. The system will assign a
document number automatically.
Payment document
number
Click on the exit icon
window.
, which will produce the following pop-up
There is no data to be lost, so click on the Yes icon to return to the SAP
Easy Access menu.
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Yes
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CASE STUDY
Review Document Flow
Task Review the document flow.
Time 5 min
Short Description Use the SAP Easy Access Menu to review the document flow.
Name (Position) Jamie Shamblin (East Rep. Miami)
The document flow tool links all documents that were used in The Bike Zone’s sales order.
Again, there are many ways to access the document flow tool. One way is to start by
displaying the sales order document.
To display the document flow, follow the menu path:
Menu path
Logistics ► Sales and Distribution ► Sales ► Order ► Display
This will produce the following screen.
If your sales order is not displayed, you can search for you sales order number or use the sales
order number you recorded in Question 5.
To access the document flow tool, follow the pull-down menu path:
Environment ► Display document flow
The document flow for The Bike Zone will look like the following.
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CASE STUDY
Review the documents for The Bike Zone’s order. You may select any document and click on
to look at it in detail. For example, click on the very last entry of the
document flow listed as Accounting document and choose Display document.
Question 9:
Display the Accounting document and you’ll see the accounting entries made as a result of
this sales order. How much credit is assigned, in total, to the Sales Discount Account 610000?
Click on the back icon
to return to the document listing.
Question 10:
Take a screen shot (using the Prnt Scrn button on your computer) of the document flow for
this sales order. Paste this screen shot into an email or a document file. Print the document.
Note that the print out should resemble the screen shot found at the top of this page.
Click on the exit icon
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to return to the SAP Easy Access screen.
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