Sales and Distribution SD Gettin it sold and out

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Sales and Distribution (SD)Gettin it sold and
out!
Flya Kite
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SAP R/3SD Module (Sell)

• Customer order management process
• Integrated with
• Materials Management (MM)
• Production Planning and Execution (PP)
• Financial Accounting (FI)

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SAP R/3SD Organizational Elements

• Sales Organization
• Distribution Channel
• Sales Division
• Plant
• Storage Location
• Shipping Point

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Sales Organization
Sales and Distribution (SD)

• Sales Organization
• Sells and distributes products
• Negotiates terms of sales
• Responsible for these business transactions
• Critical organization element to the definition
  of business markets
• A sales transaction is linked to only one Sales
  Organization

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Distribution Channel

• Defines how different goods and services reach
  the customer
• Direct (DI)
• Wholesale (WH)
• Retail (RE)
• Mail order
• etc.

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Division
Sales and Distribution (SD)

• Often times used to define product line
  distribution
• Organization level at which customer specific
  information and requirements are maintained
• (e.g. pricing, partial delivery)
• Assigned to one or more Sales Organizations
• Example competitive and standard kites

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Sales Area
Sales and Distribution (SD)
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Shipping and Loading Points
Sales and Distribution (SD)

• 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

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Shipping Organization
Sales and Distribution (SD)
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Material Master

• Contains all data required to define and manage a
  specific item of material
• Integrates data from
• Inventory Control (MM)
• Manufacturing (PP)
• Sales and Distribution (SD)
• Accounting (FI and CO)
• And other departments
• Each user has a unique view
• View what a particular functional user sees when
  accessing the record

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Material Master Sales Sales Org. 1 View
Sales and Distribution (SD)

• General Data
• Base Unit of Measure
• The Base Unit of Measure is the unit of measure
  in which stocks are managed within your company.
• Sales Unit
• The unit of measure in which the material is
  sold, if left blank then uses the base unit of
  measure.
• Division
• You may enter the Division which your product is
  in for sales (defaults if entered in the Basic
  data screen).
• Material Group
• A key thats used to group several materials or
  services for analysis/reporting as well as search
  by match code.

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Material Master Sales General/Plant
Sales and Distribution (SD)

• General Data
• Gross weight
• Used to check storage capacity in warehouse
• Net weight
• Weight excluding packaging and extras
• Avail. Check
• Option to do an availability check for orders and
  MRP

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Material Master Sales General/Plant
Sales and Distribution (SD)

• Shipping Data
• Transportation Group
• Group materials that have the same transportation
  requirements. For example, bulk stock materials
  or refrigerated materials
• Loading Group
• Loading groups define materials that have the
  same loading requirements, such as forklift
  truck, or crane.

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Customer Master

• Contains all the customer related data necessary
  for processing orders, deliveries, invoices and
  customer payments
• Customer Master contains all relevant data
  regarding business partners
• Sold-to party
• Ship-to party
• Bill-to party
• Payer

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Customer Master
Sales and Distribution (SD)

• Customer Master Data is created by Sales Area
• Sales Organization
• Distribution Channel
• Division

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Customer Master Company Code Accounting
Information
Sales and Distribution (SD)

• Accounting Information
• Reconciliation Account
• Sort key
• Head office
• Interest Calculation
• Interest indicator
• Interest cycle
• Interest calculation frequency in months
• Last interest run
• Reference Data
• Previous account number
• Buying group

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Customer MasterSales
Sales and Distribution (SD)

• Sales Order
• Sales District
• Sales Office
• Sales Group
• Order Probability
• Item Proposal
• Pricing / Statistics
• Price Group
• Customer Pricing Procedure
• Price List Type
• Customer Statistical Group

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Customer MasterShipping
Sales and Distribution (SD)

• Shipping
• Delivery Priority
• Shipping Conditions
• Delivering Plant
• Order Combination
• Partial Delivery
• Complete Delivery Required By Law
• Partial Delivery per Item
• Max Partial Deliveries
• Under-delivery Tolerance
• Over-delivery Tolerance
• General Transportation Data
• Transportation Zone

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Customer Material Info Record
Sales and Distribution (SD)

• Data on a material defined for one specific
  customer is stored in the customer material
  information records
• Customer-specific material number
• Customer-specific material description
• Customer-specific data on deliveries and delivery
  tolerances

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Pricing

• Pricing is carried out automatically based on
  predefined prices, discounts, and surcharges
• Highly customizable within SAP R/3

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Other SD Functions
SAP Enterprise System

• Availability check
• Credit checking
• Shipping point determination
• Route determination
• Revenue assignment

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Availability Check
Sales and Distribution (SD)

• 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
• All movements of stock

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Credit Checking
Sales and Distribution (SD)

• Static Credit Limit Check
• Open Items (accounts receivable)
• Open Orders
• Open Deliveries
• Open Billing documents
• Dynamic credit limit with credit horizon check
  (future dates)

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Shipping Functions
Sales and Distribution (SD)

• Shipping Point Determination
• The shipping point is selected for each line item
  based on the shipping point determination process
• Shipping point based on
• Shipping conditions
• Loading group
• Delivering plant

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Shipping Functions (continued)
Sales and Distribution (SD)

• Route Definition
• Delivery method and the transit time
• Dummy routes can be used to easily define
  transit time
• Route Determination
• Proposed route is chosen using
• Shipping point
• Destination country
• Transportation zone
• Shipping conditions

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Revenue Assignment Determination
Sales and Distribution (SD)

• Transfers billing values from the Sales and
  Distribution to Finance
• Automatic account assignment
• Used to recognize revenue
• Keys used to allocate revenue to the proper
  account

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Flow of Sales Documents

• Sales Order
• Delivery
• Invoice
• Settlement

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Sales Order

• Core element of the customer order management
  process
• Specifies the material, quantity, and delivery
  date of a sales agreement

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Standard Functions when Sales Order Initiated

• Check product availability
• Calculate price and tax
• Check credit limit
• Reduce available credit for customer as required
• Forecast cash
• Determine the delivery schedule
• Transfer requirements to Material Requirements
  Planning (PP)

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Availability Check
Sales and Distribution (SD)

• 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
• All movements of stock

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Credit Limits and Checking
Sales and Distribution (SD)

• Define automatic credit limit checks to your
  companys requirements
• Define point at which system carries out these
  checks (order, delivery, goods issue, and so on)
• A credit representative is automatically alerted
  to a customers critical credit situation as soon
  as order processing starts
• Employees can be automatically notified of
  critical credit situations via internal mail

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Delivery Note
Sales and Distribution (SD)

• Initiates the delivery process
• Control mechanism for the process
• Changes to delivery are allowable - products,
  quantities

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Picking
Sales and Distribution (SD)

• 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)

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Packing
Sales and Distribution (SD)

• Identifies which packaging is to be used for
  specified products
• Identifies and updates accounts associated with
  returnable packaging
• Tracks the packed product by container
• Ensures weight/volume restrictions are enforced

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Delivery Due List
Sales and Distribution (SD)

• Produces a work-list of deliveries
• Encompasses deliveries and transfers
• Can be scheduled to run in batch
• Automatically combines deliveries

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Goods Issue
Sales and Distribution (SD)

• 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

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Sales Invoice

• Bill sent to the customer
• Issued after goods are shipped
• Financial Accounting (FI) updates the General
  Ledger
• Increase the dollar value for accounts receivable
  - a Balance Sheet account
• Increase the dollar value for sales revenue an
  Income Statement account

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Post Goods Issue

• Performed after title transfers
• Materials Management (MM) decreases the number of
  units in inventory
• Financial Accounting (FI)updates the General
  Ledger
• Increase dollar value for cost of goods sold
  (CGS)Income Statement account
• Decrease the dollar value for inventoryBalance
  Sheet account

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Settlement Receipt of Payment

• Customer credit limit adjusted upward as required
• Financial Accounting (FI) updates the General
  Ledger
• Increase the dollar value of cash - Balance Sheet
  account
• Decrease the dollar value of accounts receivable
  - Balance Sheet account

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SD Document Flow
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Sales Order
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Outbound Delivery Notice
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Issue of Goods
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Accounting DocumentTransfer from Inventory to
CGS
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Customer Invoice
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Accounting DocumentBilling Entry to GL
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Flya Kite Transactions

• Exercise SD01 Create General Ledger
  Reconciliation Accounts (Accounts Receivable)
•  Exercise SD02 Create Customer
•  We will create general and sales views for the
  customer. Remember when we created vendors
  centrally? Here the same function is named
  Complete indicating that we would include not
  only the Sales and Distribution views, but the
  Materials Management and Financial views as well.
• Exercise SD03 Create a Good Recipient (Ship-to
  party)
• Western Toys has a distribution center/branch
  office, where we ship goods. We create a
  specific ship-to customer for this separate
  address.
• Exercise SD04 Assign new Ship-to party
• The master customer record for Western Toys
  Headquarters is already set up in your company.
  Now you have to change the ship to data in the
  master to reflect that items will NOT be shipped
  to the headquarters but to the regional
  distribution center in Las Vegas. When you
  originally set up the headquarters master record,
  it had to be set up so that all partner functions
  (sold-to, bill-to, payer, and ship-to) were for
  the headquarters. Now that the regional
  distribution center has been set up, all
  shipments will go there so the Ship-to party must
  be changed.

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Flya Kite Transactions

• Exercise SD05 Create Sales views for Trading
  Goods
•  The views for all materials in the material
  group TRADE, already created in an earlier MM ,
  must now be extended to include the sales views
  to make the materials sellable.
• Additionally, the materials must have sales views
  created (extended) for
• The distribution channels where they will be sold
  - Direct and Wholesale.
• All storage locations
• Exercise SD06 Create Sales views for Finished
  Products
•  Exercise SD07 Create material prices
• This step creates material prices that any
  customer would pay, without any considerations or
  discounts. Prices are defined by Sales
  Organization and Distribution Channel
• Exercise SD08 Create customer specific material
  price
• Exercise SD09 Create customer discount

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Flya Kite Transactions

• Exercise SD10 Create customer material info
  record
• When a customer wishes to order materials from us
  using a different naming convention than we do,
  we can set up a Customer Material Info Record
  which allows us to enter materials by the
  customer's specific naming convention. SAP will
  translate these materials into our material
  names, which enables the customer and our sales
  rep to communicate clearly.
• Exercise SD11 Create an item proposal
• In situations where a customer often places an
  order with the same line items, an Item Proposal
  (order 'template') can be created with the
  standard line items and quantities already filled
  in. We can then pull the standard items in as we
  create the sales order by referencing the Item
  Proposal.
• Exercise SD12 Assign item proposal to customer
•  Now that the item proposal has been created, we
  can reference it in the customer master. Whenever
  we ask for an Item Proposal in a sales order for
  that customer, the system will default this Item
  Proposal.

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Flya Kite Transactions

• Exercise SD13 Create an inquiry
•  A sales representative needs to find out about
  material pricing for a customer.
• Exercise SD14 Create Sales Order referencing an
  inquiry
•  If the customer places order, create the order
  referencing the inquiry. At this point items may
  be added, deleted or changed.
•  Exercise SD15 Check stock status
• Exercise SD16 Create delivery for sales order
•  Creating the delivery brings your order to the
  point where stock availability is re-determined,
  and the quantity of ordered items is moved to a
  'scheduled for delivery' status.
• Exercise SD17 Picking materials on delivery
  note
•  The picking of materials function will indicate
  the quantity of the proposed materials per
  delivery.
• Exercise SD18 Post goods issue
• Reduces unrestricted stock to reflect the
  inventory shipped. It also indicates a change
  of ownership of the goods. These goods have left
  your plant and are now owned by your customer.
• Exercise SD19 Billing the customer 
• Exercise SD20 Review document flow
• SAP allows us to see a whole transaction from
  beginning to end.

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Flya Kite Transactions

• Exercise SD21 Create Sales Order using item
  proposal
• Western Toys, HQ calls in a weekly sales order,
  which normally has the same materials and
  quantities. We will use the item proposal that
  we assigned to this customer earlier.
• Exercise SD22 Create Sales Order using customer
  info record
•  The customer Northern Nicknacks always uses
  their own material numbers for the items they buy
  from us. In an earlier exercise, we created a
  customer info record with Northern Nicknacks'
  material numbers and our material number
  equivalents. We can now create a sales order
  using their part numbers.