Sales and distribution
OVERVIEW
-1-
AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Break
Distribution flow
Billing and reporting
End
-2-
Organizational entities
COMPANY
CODE
…
SHIPPING POINT A
PLANT 1
SHIPPING POINT B
SALES
ORGANISATION
…
SHIPPING POINT C
PLANT 2
SHIPPING POINT D
…
SHIPPING POINT E
PLANT 3
SHIPPING POINT F
STORAGE
LOCATION X
-3-
…
STORAGE
LOCATION Z
Organizational entities
• Company code
Independant accounting unit
Legal entity
• Sales organisation
Responsible for distributing goods and services
Responsible for negotiating sales conditions
• Plant
Produces goods, renders services, or makes goods available for distribution
• Storage location
Place where stock is physically kept within a plant
• Shipping point
Fix location that carries out shipping activities
-4-
AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Break
Distribution flow
Billing and reporting
End
-5-
Overview processes in sales and distribution
M
S
P
R
O
D
U
C
T
I
O
N
M
P
A
T
E
SALES
R
Order
Debit memo request
Returns
Credit memo request
I
A
L
SHIPPING
Delivery
Returns Delivery
Goods Issue
A
Shipment
L
N
A
BILLING
Debit memo
Invoice
Credit memo
G
N
E
N
M
E
FIN. ACCOUNTING - CONTROLLING
Accounts receivable Material Stock Account
-6-
A
I
N
N
T
G
Sales order entry
• Sales order creation based on master data
– Customer
– Material
– Prices
see further for details
• During creation, you have to enter
–
–
–
–
Sales organisation
Customer
Material and quantity
Delivery date
and the rest is determined automatically in background
-7-
Sales order entry: background
• Credit check
– Warning / block order
• Automatic pricing
• Availability control
• Creation documents (output)
– Order confirmation
– Use of texts from customer / material
• Incompletion check
– payment terms
– pricing
– Taxes
-8-
Sales order entry : availability check
ATP
-9-
Sales order entry: header and item
customer
materials
Customer material number
- 10 -
Sales order entry: pricing
Price is determined automatically
- 11 -
Sales order entry: order confirmation
Article details
Price details
Delivery address
- 12 -
AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Distribution flow
Billing and reporting
End
- 13 -
Overview processes in sales and distribution
M
S
P
R
O
D
U
C
T
I
O
N
M
P
A
T
E
SALES
R
Debit memo request
Order
Returns
Credit memo request
I
A
L
SHIPPING
Delivery
Returns Delivery
Goods Issue
A
Shipment
L
N
A
BILLING
Debit memo
Invoice
Credit memo
G
N
E
N
M
E
FIN. ACCOUNTING - CONTROLLING
Accounts receivable Material Stock Account
- 14 -
A
I
N
N
T
G
Delivery-Shipping Processing Overview
Sales
order
•Sales order
•Goods issue
Delivery
•Create
delivery
•Delivery note
•Picking list
•Update stock
•Post general ledger
- 15 -
•Picking
Delivery creation
• Checking list: for which orders deliveries need to be created to
deliver goods in time
• No more extra data need to be entered  automatic creation
• Picking list is printed automatically:
– When to get the goods and how much
– Add name of carrier and license number
– Add number and type of pallets
- 16 -
Output picking list
License number
Name of carrier
Loading date
Materials
Pallets
- 17 -
Administrative update delivery
• Enter picking details in SAP
• Post goods issue
- 18 -
Output delivery note
• After goods issue, the delivery note is printed
- 19 -
Goods issue for deliveries
Posting goods issue :
automatically adapts stock
levels
automatically adapts stock
accounts
updates the status in all related
sales documents and in the
delivery document.
Reduces the requirements
automatically updates the billing
due list
- 20 -
AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Distribution flow
Billing and reporting
- 21 -
Overview processes in sales and distribution
M
S
P
R
O
D
U
C
T
I
O
N
M
P
A
T
E
SALES
R
Debit memo request
Order
Returns
Credit memo request
I
A
L
SHIPPING
Delivery
Returns Delivery
Goods Issue
A
Shipment
L
N
A
BILLING
Debit memo
Invoice
Credit memo
G
N
E
N
M
E
FIN. ACCOUNTING - CONTROLLING
Accounts receivable Material Stock Account
- 22 -
A
I
N
N
T
G
Billing: invoice creation
- 23 -
Billing: effects of creating an invoice
Invoice
Creating an invoice:
Custom
er
Credit
Record
A/R
X
automatically creates an accounting
document that updates the general
ledger account for revenue.
updates the status in all related
sales, delivery, and billing
documents.
Profitability Analysis
Sales Information System
Delivery
Sales order
updates the customer’s credit
record.
updates sales statistics for the
Sales Information System.
updates controlling elements such
as profitability analysis and profit
center accounting.
- 24 -
Invoice
Details delivered goods
Payment terms
- 25 -
Document flow
Quotation
Order
Delivery
Invoice
Returns
Delivery
Credit
for returns
Document flow of an order
Quotation
. Order
. . Delivery
. . . Invoice
. . Returns
. . . Returns delivery
. . . . Credit for
. returns
.
.
- 26 -
Reporting: sales information system
Additional
Information
-Material master
-Customer master
-Documents
Drill down
by customer
Drill down
by period
Customer analyses
Sales org billed qty billed value
0800
Customer
billed qty
BELLO
DIA
300
200
Customer BELLO
Month
billed qty
Feb 05
Mar 05
500
100
200
3000
billed value
1800
1200
billed value
Functions
-Drill down
-Filters
-ABC Analysis
-Graphics
-…
600
1200
… and lots of other possibilities to report and analyse data
- 27 -
AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation
- 28 -
Sales order entry
- 29 -
Sales order entry
- 30 -
Sales order entry – ship-to
- 31 -
Sales order entry
- 32 -
Sales order entry - pricing
- 33 -
Sales order entry - pricing
- 34 -
Output order acknowledgement
- 35 -
Delivery creation
- 36 -
Delivery creation: materials
- 37 -
Delivery creation: batches per material
- 38 -
Delivery scheduling
- 39 -
Output pick list
- 40 -
Delivery processing
- 41 -
Delivery processing
- 42 -
Output delivery note
- 43 -
Billing
- 44 -
Billing
- 45 -
Output invoice
- 46 -
AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation
End
- 47 -
Master data: overview
• Customer master data
• Material master data
• Different price types
- 48 -
Master data customer: business partners
• Different types of business partners
– Sold-to party
Places the sales order
– Ship-to party
Receives the goods
– Bill-to party
Receives and verifies the invoices
– Payer
Pays the invoices
- 49 -
Master data customer: kind of data
Customer
General data
Customer
Company code data
•General data
–Name
–Address
–VAT number
–Telephone number
•Company code data
Customer
Sales area data
•Sales area data
–Sales district
–Customer group
–Incoterms
–Business partners
–Payment terms
–Reconciliation account
- 50 -
Master data material
Integrates data from
- Manufacturing
- Sales and distribution
- Purchasing
- Accounting
- …
- 51 -
Master data prices: determination price
Prices are called condition records in SAP
• Price procedure linked to order type
• Price procedure consist of different
condition types:
–
–
–
–
Sales price
Discount
Surcharge
…
• Each condition type has different
levels: access sequence level
• Data about conditions are stored in
condition records
- 52 -
Master data upload
• Special templates for upload
– Business partners
– Prices
– Scales for prices
• Optional, mandatory and default fields
• Certain checks already build in
– Example: lenght postal code
• Examples: see excel sheets
- 53 -
AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation
- 54 -
Intercompany
Purchase
Order
IC customer
IC vendor
10
20
MRP
Stock transport
Order (Planned order)
Delivery
Due List
Delivery
Transport planning
Picking
B
A C D
E
Invoic
e
B
A C D
E
Goods receipt
EDI
IC
Invoic
e
receipt
- 55 -
Goods issue
AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation
End
- 56 -
Transportation : Objective
= Assign transport costs to outgoing logistical flows
• integrated profitability analysis
• analysis on customer, organisational or product level
(MIS)
• tool for invoice checking
- 57 -
Transportation : Principles
• Shipments = group of deliveries loaded on one truck.
• Shipments serve as a basis for a shipment cost
document.
• Shipment costs are calculated using transport price
conditions, maintained in the system.
• Shipment costs will be transfered as provisions on
transport purchase orders, which are used for
transport invoice checking and registration.
- 58 -
Transportation : Diagram (1)
Order
Delivery
Shipment
Transport
Conditions
Shipment Cost
Invoice
Transp. Purch. Order
Transport
Invoices
- 59 -
Transportation : Diagram (2)
SD
TRANS
Order
Delivery
Shipment
Transport
Conditions
Shipment Cost
Invoice
MM
Transp. Purch. Order
Transport
Invoices
- 60 -
Transportation : Background creation
of shipments and shipment costs
Shipments and shipment costs plus transfer to transport
purchase orders are created automatically by a daily
backgroud job running at night.
• 4 transport categories: Ex works, Customer,
Intercompany and Intracompany transports.
• Posted deliveries are daily grouped into shipments per
carrier, shipping point and transport ID.
• Delivery must include all essential information : ship-to,
incoterm, carrier, transport ID.
- 61 -
Transportation : Diagram (4)
SD
TRANS
Order
Delivery
-
Shipment
Inter
Ship-to
Carrier
Shipping point
Transport ID
Incoterm
Invoice
MM
Cust
Intra
Exw
Transport
Conditions
Shipment Cost
Inter
Cust
Intra
Transp. Purch. Order
Inter
Cust
Transport
Invoices
Intra
- 62 -
Transportation : Transport purchase
orders
• Validity period = month
• Tranport purchase orders for the coming month are
created at the end of the current month.
• Creation by means of a special transaction, based on a
text file, which can be reused every month.
• Closed monthly but invoice registration remains
possible.
- 63 -
Transportation : Transport conditions
According to meet different ways of transport pricing (fix,
per CU, per Kg, ...) , there are :
• different pricing conditions,
• having different calculation bases (shipment, delivery
based),
• which can be set up at different (geographical) levels
(customer, department country).
• Both pricing conditions and level are called upon by a
search strategy working with priorities.
- 64 -
Transportation : Transport conditions
- 65 -
Transportation : Follow up
Daily follow up control reports:
• all deliveries in a shipment?
• all shipments costed?
• shipment cost correctness
• shipment cost transfer
• provisioned transport costs vs received invoices
Manual creation/modification possible
- 66 -
Questions
- 67 -
Questions
- 68 -