Sales and Distribution (SD)
Overview
SD
FI
Sales &
Distribution
Financial
Accounting
MM
PP
SM
CO
Materials
Mgmt.
Controlling
Service
Management
AM
R/3
Production
Planning
Fixed Assets
Mgmt.
EC
Integrated Solution
Quality
Client / Server
Management
PM
Plant Maintenance Open Systems
Enterprise
Controlling
QM
PS
WF
Project
System
Workflow
HR
IS
Human
Resources
Industry
Solutions
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
SD Components
Master
Data
Sales
Support
Foreign
Trade
Sales
Info
System
Sales
Shipping
Billing
Transportation
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
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
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
SD Overview — Shipping
• Main functions
– Picking, Packing & Inventory management
– Generate Shipping Documents
• Transportation Management
– Routes
– Transportation Scheduling
• Delivery Scheduling, Returns Deliveries &
Stock Transfer
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
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)
Transportation
Foreign Trade
Sales & Distribution
- Process Flow -
Supply Chain Process
Customer Order
Final Payment
Picking
Accounts Receivable
Goods Issue
Billing
SAP Process Steps
Sales
Quotation
Shipping
Delivery
Note
Billing
Billing
FI
A/R
Post
Incoming
Payment
Sales
Order
Picking
Post Goods
Issue
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
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
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
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
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
Billing
• Generate customer invoice
• Updates FI
– Customer account
– G/L accounts: revenue, discount, etc.
• Applies relevant pricing
• Updates customer credit
Sales & Distribution
- Organizational Structures -
Sales Organization
Client
860
Pastime Corporation
Company Code
CC00
Domestic Sales
Sales Organization
So00
Europe
Sales Organization
EURO
Asia Pacific
Sales Organization
APAC
Wholesale
Distribution Channel
WH
Direct
Distribution Channel
DI
Wholesale
Distribution Channel
WH
Retail
Distribution Channel
RE
Wholesale
Distribution Channel
WH
Baseball
Division
BB
Baseball
Division
BB
Baseball
Division
BB
Baseball
Division
BB
Softball
Division
SB
Softball
Division
SB
Softball
Division
SB
Cricket
Division
SB
Baseball
Division
BB
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
Distribution Channel
• Identifies how products and services reach
the customer
• Can be assigned to one or more Sales
Organizations
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
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
Sales Area
Domestic Sales
Sales Organization
SO00
Direct
Distribution Channel
DI
Baseball
Division
BB
Softball
Division
SB
Wholesale
Distribution Channel
WH
Baseball
Division
BB
Softball
Division
SB
Retail
Distribution Channel
RE
Baseball
Division
BB
Softball
Division
SB
Sales Area
Domestic Sales
Sales Organization
SO00
Direct
Distribution Channel
DI
Baseball
Division
BB
Softball
Division
SB
Wholesale
Distribution Channel
WH
Baseball
Division
BB
Softball
Division
SB
Retail
Distribution Channel
RE
Baseball
Division
BB
Softball
Division
SB
Sales Office
• Typically defines a territory or market area
• Linked to one or more Sales Areas
• Optional organization structure
Internal Sales Organization
Domestic
Sales Area
Western
Sales Office
Eastern
Sales Office
Sales Group
• Sales Group
– Sub-division of a sales office, territory or
market
Sales Person
• Sales Person
– Defined in HR — Personnel Admin.
– Specifically defines an individual rather than a
position (sales rep.) in sales processing
Internal Sales Organization
Domestic
Sales Area
Western
Sales Office
Southwest
Sales Group
Sales
Person
Sales
Person
Eastern
Sales Office
Northwest
Sales Group
Southeast
Sales Group
Northeast
Sales Group
Sales
Person
Sales
Person
Sales
Person
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
Shipping Organization
Sioux Falls
PLANT
PT00
Freight Dock
Shipping Pt
SP00
Dock #1
Loading Pt
D1
Dock #2
Loading Pt
D2
Express
Shipping Pt
QUIK
Export
Shipping Pt
EXPT
Dock #3
Loading Pt
EX
Dock #2
Loading Pt
XP
Sales & Distribution
- Master Data -
SD Master Data - Core Elements
Master
Data
Pricing
Material Master — Sales: sales org. 1
-General Data
Basic Unit of Measure
Division
Material Group
Sales Unit
Delivering Plant
Cash discount
-Tax data
Country
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
Tax category
Tax classification
-Quantity stipulations
Min. order quantity
Min. delivery quantity
Delivery unit
Quality Management
Accounting 1 - 2
Costing 1 - 2
Material Master — General Data
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.
Material Master — Tax data &
Quantity stipulations
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.
Material Master — Sales: sales org.
Basic Data 1 - 2
Classification
Sales: sales org. 1 - 2
-Grouping terms
Sales: general/plant
Purchasing
Matl statistics group
Material pricing grp
Volume rebate group
Acct assignment grp
Commission group
Item Category group
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
Material Master — Grouping terms
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 groupA 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.
Material Master — Sales: general/plant
Basic Data 1 - 2
Classification
General data
Base unit
Gross weight
Net weight
Avail. Check
Sales: sales org. 1 - 2
Sales: general/plant
Purchasing
Foreign Trade: Import Data
Sales text
Purchase order: text
Shipping data (times in days)
Trans. Grp
LoadingGrp
Packaging material data
Matl grp ship. matls
MRP 1 - 4
Forecasting
Storage 1 - 2
Warehouse Management 1 - 2
Quality Management
Accounting 1 - 2
General plant parameters
Negative stock
Costing 1 - 2
Material Master — General data & Shipping
data (times in days)
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.
Material Master — Packaging material data &
General plant parameters
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.
Material Master — Sales texts
Basic Data 1 - 2
Classification
Sales: sales org. 1 - 2
Sales: general/plant
- Sales texts
Text
specific to
the material
and in an
appropriate
Purchasing
Foreign Trade: Import Data
Sales text
Purchase order: text
MRP 1 - 4
Forecasting
language.
Storage 1 - 2
Warehouse Management 1 - 2
Quality Management
Accounting 1 - 2
Costing 1 - 2
Account Groups
• Account group determines which fields
are to be used in defining customer
master data
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
Sales & Distribution
- Customer Master -
Customer Master
General
Data
Sales & Distribution
Data
Company Code
Data
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
Customer Master by Sales Area
Customer
• Sales Organization
• Distribution Channel
• Division
Customer Master — Address &
Communication
General Data — Address
Customer Name
Search Term
Street address, City,
Postal code, Country
Language
General Data — Communication
Telephone, Fax, Data numbers
Customer Master — Control Data
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 :
Industry:
International Locator No.
Transport Zone
Express station
Train station
Location code
Customer Master — Marketing
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
Customer Master — Payment
Transactions
General Data —
Payment Transactions
Bank details
Country
Bank Key
Account holder
Bank Account
Control Key
Collection
Customer Master — Unloading Point
General Data —
Unloading points
Unloading point
Customer factory calendar
Default Unloading Point
Goods receiving hours
Customer Master — Foreign Trade
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
Customer Master — Contact Persons
General Data —
Contact persons
Name
Telephone number
Department
First name
Form of address (e.g. Mr., Ms.)
Function
Customer Master — Accounting
Information
Company Code Data
Accounting Information
Accounting info
Reconciliation Account
Sort key
Head office
Interest calculation
Interest indicator
Interest calculation frequency
Last key date
Reference data
Buying group
Customer Master — Payment
Transactions
Company Code Data
Payment Transactions
Payment data: Payment terms
Tolerance group
Automatic
Payment
Transactions: Payment methods
Alternative payer
Lockbox
Customer Master — Correspondence
Company Code Data
Correspondence
Dunning data :
Dunning procedure
Dunning recipient
Correspondence :
Account number
at customer
Customer user
Payment
notices to :
Customer
Sales
Accounting
Legal
Customer Master — Insurance
Company Code Data
Insurance
Export credit
insurance : Policy number
Institution number
Amount insured
Valid until
Lead months
Deductible
Customer Master — Sales
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
Customer Master — Shipping
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
Customer Master — Billing
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
Customer Master — Partner Functions
S&D Data —
Partner functions
The different partners are assigned
•
•
•
•
•
SP
BP
PY
SH
…
Sold-to-party
Bill-to-party
Payer
Ship-to-party
additional Partner function(s)
Assigning Additional Partners
— Siesta Baseball League - Vera Cruz, NM —
Sold-to : 10018
Sold-to
Bill-to : 10018
Payer : 10018 Bill-to
Payer
Ship-to
Ship-to : 10018
— Siesta Baseball League - Vera Cruz, NM —
Sold-to : 10018
Sold-to
Bill-to : 10018
Payer : 10018
Payer
Ship-to
Ship-to : 10018 Bill-to
Ship-to : 10249 - Bakersfield, CA
Ship-to
Sales & Distribution
- Business Partners -
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
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
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
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
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
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
Business Partners — Example
Sold-to
Sold-to
Ship-to
Bill-to
Ship-to
Ship-to
Payer
Ship-to
Ship-to
Ship-to
Sales & Distribution
- Pricing -
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
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
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
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)
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 ($)
R/3 Pricing Process
SALES DOC.
ITEM
DETERMINE PRICING
PROCEDURE
FOR ITEM
DETERMINE ACCESS
SEQUENCE FOR EVERY
CONDITION TYPE IN
PRICING PROCEDURE
ACCESS THE CONDITION
RECORDS AND
DETERMINE PRICE
PRICE THE
ITEM
SALES AREA &
DOCUMENT TYPE &
SOLD-TO
CONDITION TYPE AND
ACCESS SEQUENCE
ARE LINKED IN
TABLE
CUSTOMER/MAT’L OR
PRICE LIST/MAT’L OR
MATERIAL
--$9.25
N/A
UNIFORM
SALES DOC. SOLD PRICING
AREA TYPE TO PROCEDURE
KEY
CONDITION
TYPE
ACCESS
SEQUENCE
PR00
KI00
TX00
FR00
US01
A
1
USSTD
PR00
KI00
US01
B
1
USALT
UK01
A
1
UKSTD
TX00
FR00
UK02
A
1
UKSTD
PRICING CONDITION
CONDITION
PROCEDURE
TYPE
USSTD
PRICE ELEMENT
CONTROL PARAMETERS
UPPER/LOWER LIMITS
USALT
STOPS LOOKING AFTER
FINDING FIRST VALUE
LOOK FOR CONDITION
ACCESS
OR
RECORDS IN THIS ORDER
SEQUENCE DER
OF CONDITION TABLES
PR00
01
CUSTOMER/MATERIAL
02
PRICE LIST TYPE/MAT’L
03
MATERIAL
01
CUSTOMER/MATERIAL
PR00
PRICE
KI00
DISCOUNT
TX00
TAXES
02
PRICE LIST TYPE/MAT’L
FR00
FREIGHT
03
MATERIAL
PR00
PRICE
KI00
ETC.
KI01
DISCOUNT
ETC.
Price Agreements
• Simple price
agreements
–
–
–
–
product
customer
customer & material
customer group &
material
• Detailed price
agreements
– pricing scales
– rebates
– customer expected
price
Specialized Master Data
• Customer Material Info. Record
• Item Proposal
• Listing & Exclusion
• Product Substitution
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
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
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
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)
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
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
Sales & Distribution
- Transactions -
Business Document Types
Returns
Inquiry
Quotation
Sales Order
Contract
Consignment
Scheduling
Agreement
Cash Sale
Returnable
Packaging
Rush Order
Debit Memo
Credit Memo
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
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
Delivery Scheduling
• Structure of sales documents
Header
Line item # 1
Schedule line # 1
Schedule line # 2
Line Item # 2
Schedule line # 1
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
Backward Scheduling
25
Order
Date
25th
Material
Availability
26th
Transp.
Sched.
Loading
27th
Goods
Issue
28th
Transp.
Sched.
Time
(1 day)
Pick & Pack
Time
(2 days)
Requested
Delv. Date
29th
31st
Loading
Time
Transit
Time
(1 day)
(2 days)
Forward Scheduling
27
Material
Availability
26th
Order
Date
27th
Transp.
Sched.
27th
Goods
Issue
29th
Loading
28th
Transp.
Sched.
Time
Loading
Time
Transit
Time
(1 day)
(2 days)
(1 day)
Pick & Pack
Time
(2 days)
Requested
Delv. Date
31st
1
New
Delv. Date
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
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
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
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
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
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
Shipping
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
Shipping Overview
Order
Order
Order
Order
Delivery
Delivery
Delivery
Order
Combination
Order
Delivery
Delivery
Partial
Delivery
Complete
Delivery
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
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
Deliveries & Delivery Notes
• The Delivery Note
– Initiates the delivery process
– Control mechanism for the process
– Changes to delivery are allowable - products, quantities
Picking
Delivery
Note
Packing
Status
Loading
Post Goods
Issue
Delivery Due List
•
•
•
•
Produces a work-list of deliveries
Encompasses deliveries and transfers
Can be scheduled to run in batch
Automatically combines deliveries
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)
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
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
Goods Issue
Inventory
General
ledger
750
Cost of goods sold
750
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
Automatic Account Assignment
• Defines the G/L accounts that billing entries
are posted to — revenue, deduction, freight
charges
Application Condition Chart of
Type
Accounts
V
From
Sales
Doc.
Sales
Org.
Cust
Acct.
Grp.
Account G/L
Key
Account
KOFI
CHRT
SOxx
01
ERL
610000
From
Table
From
Sales
Doc.
From
Sales
Doc.
From
Customer
Master
From
Pricing
Proc
From
Table
Billing Methods
Separate invoice
per delivery
Order
Delivery
Invoice
Delivery
Invoice
Delivery
Collective
Invoice
Order
Order
Invoice
Split
Order
Delivery
Invoice
Delivery
Delivery
Invoice
Invoice
Billing Documents
• Explicitly specify documents
• Billing due list — builds a worklist of
invoices that should be generated
• Automatic posting to FI
Billing Documents
General
ledger
Revenue
2000
Customer
2000
A/R recon.
2000
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
SD Milestone Billing
Sales
Order
Billing
Plan
Sold-to : QAZ Industries
Material : 546-dk1 Generator
Billing
date
11/20/96
01/20/97
04/20/97
05/20/97
06/20/97
Delivery Date : 06/20/97
Price
: $300,000
Description
%
Value
Contract
Assembly
Operational
Acceptance
Final invoice
10
40
40
10
--
30,000
120,000
120,000
30,000
--
Billing Milestone
block
x
x
x
x
x
x
x
Billing
status
x
x
Outline Agreements
• Contracts
• Schedule Agreements
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
Contracts
Contract
Target Qty: 900
Order Qty: 700
..
.
Contract
Target Qty: 900
Order Qty: 750
Release Order
Order Qty: 200
Release Order
Order Qty: 150
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
Scheduling Agreements
Scheduling
Agreement
Date
05/15
06/15
07/15
08/15
Qty
100
100
200
300
Delivery
5/10 100
Delivery
6/10 100
Delivery
7/10 200
Delivery
8/10 300
Backorders
Backorder Processing
Rescheduling
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 highprofile orders
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
Customer Returns
Return
Order
Goods Receipt
Quality Inspection
Credit Memo
Customer Returns
1
2
3
Order
Return
Delivery
Invoice
Returns
Delivery
Return to
Inventory
Credit
Memo
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
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)
Output & Text
Communication — Output
Bar Coded
Documents
Printed
Documents
FAX
SAP
Document
Email
EDI
Workflow
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
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
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
Logistics Information System
•
•
•
•
•
•
Inventory Management
Purchasing
Sales and Distribution
Production
Plant Maintenance
Quality Management
Inventory Information System
Standard Analysis
•
•
•
•
•
Material
Plant
Storage Location
MRP Controller
Material Groupings
Purchasing Information System
Standard Analysis
•
•
•
•
•
Material
Vendor
Material Group
Purchasing Group
Purchasing Documents
Sales Information System
Standard Analysis
• 5 Pre-defined drill-down reports
– Customer
– Material
– Sales Organization
– Shipping Point
– SD Documents
Production Information System
Standard Analysis
•
•
•
•
Product Group
Material
Work Center
Production Resources and Tools
Reporting Tools
•
•
•
•
•
•
Value display - absolute or percentage
Top N - top 10, top 100, etc.
Sorted - ascending or descending
ABC
Classification
Graphics - 2D, 3D