BM2402

Laboratory Exercise
Sales and Distribution 1
Objectives:

At the end of the exercise, the students should be able to:

▪ Name and identify some functionalities of the sales and distribution module.
▪ Define the sales and distribution module’s central organizational structures.
▪ Explain and perform the first 8 steps of a standard sales process.

Materials:

▪ SAP S4/HANA
▪ Microsoft Word

Basic Principles:

The SAP ERP (Enterprise Resource Planning) Sales and Distribution (SD) module is made to handle important
facets of the sales process, from the first point of interaction with the customer to the completion of product
distribution. The following are the fundamental ideas of the Sales and Distribution module:

Order Fulfillment:
• Effective management of sales orders from inception to completion.
• Combining this module with others allows for smooth order processing.

Estimate and Cost:

• Preparing and overseeing quotes for possible clients.
• Dynamic pricing is determined by a number of variables, including conditions, fees, and discounts.

Inventory Control:
• Monitoring of product availability in real-time.
• Connectivity with the Material Management (MM) module to provide precise stock data.

Shipment and Delivery:

• Streamlined procedures for product delivery, packing, and selection.
• Integration for effective order fulfillment with shipping and logistics departments.

Invoicing and Billing:

• Creating invoices using sales orders as a basis.
• Integration with accounting modules to provide prompt and accurate billing.

Credit Control:
• Assessment and management of credit limits for customers.
• Credit holds and releases are managed according to predetermined standards.

Master Data Administration:

• Upkeep of crucial master data, such as client records, product specifications, and terms of sale.
• Centralized data management to ensure accuracy and consistency.

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Connectivity with Additional Modules:

• Smooth interaction with other SAP modules, including Production Planning (PP), Material
Management (MM), and Finance (FI).
• Sharing data in real-time to guarantee consistency throughout the company.

Support for Global Operations:

• The ability to oversee sales operations in multiple international locations.
• Support for multiple currencies and languages for global trade.

By comprehending and implementing these ideas, businesses may use the SAP Sales and Distribution module
to optimize operations, improve customer happiness, and manage sales processes more successfully.

Procedures:

SAP Fiori: https://m31z.ucc.ovgu.de/sap/bc/ui2/flp

Step 1: Creating a new customer (15 minutes)

In this case study, we will create the master data for a new customer. Two types of customer data are stored
about a customer – sales data and accounting data. For this task, central creation will be used to enter all the
needed data to define a new customer.
1. In the space Sales and Distribution in the section Sales Representative, use the Manage Business
Partner Master Data app to create a new customer.
2. On the Manage Business Partner screen, select the button . A submenu will open. Click
Organization here.
3. On the Create Organization screen, in the field BP Role, click the input help icon . In the open pop-
up, search for Customer and then select the entry FLCU00 | FI Customer.

4. Back on the Create Organization screen, please add the following information.
Organization Title Company
Name 1 The Bike Zone ### (your three-digit number replaces the ###)
Street 2144 N Orange Ave
City Orlando (with the Postal Code 32804)
Country US
Region FL
Language English (EN)
5. Confirm your entries with .
6. A new overview is generated. Make sure that you have selected the Basic Data tab. In the General
Information area, in the field Search Term 1, add your three-digit number ###.

7. Then, select the Roles tab. Auto-scroll will take you to the correct position. You will see a line with the
details of the business partner role and the validity dates. At the end of the line, click to maintain
further details.

8. A new screen is loading. Select the Company Codes tab. Currently, no record is maintained for the
company codes, so please select .

9. In the Company Code field, click the input help icon . A pop-up window opens.

10. Click on US00 (Global Bike Inc.). In the Finance area, the Reconciliation Account enter 1200000 (Trade
Receivables) and the Sort Key choose 001 (Posting Date). In the field Payment Term, please add 0001
(Payable immediately Due net).
11. Select to save the draft. You can save the customer role by clicking once again afterward.

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12. Select the Address → Address Details tab. You will see one line with the country details as well as the
validity dates. Click to maintain more details.

13. In the Address area, you can use the button to display all the fields. Please find the
Transportation Zone field and click the input help icon . A pop-up window will open.

14. Click on Region East to select it. Finally, use the button again to save your draft.

15. To be able to add sales area data for the customer you have just created, you have to assign a new
business partner role. For this purpose, select the Roles tab. There, choose again to create a
new row for another Business Partner Role.

16. In the empty Business Partner Role field, click on the value help icon . In the pop-up, search for
Customer and then select the entry FLCU01 - Customer.

17. At the end of the new line, you can click on to maintain more details. Switch to the tab Sales Areas
to maintain the sales area data of your customer. Since no data record currently exists, select the button
accordingly.

18. In the field Sales organization click on the value help symbol . In the pop-up window that opens,
enter UE00 as the sales organization, WH (Wholesale) as the distribution channel and BI (Bicycles) as
the division description. Then press .

19. Click on US East to accept the entry. The fields will be filled accordingly in the General Data.

20. Then select the Sales Area Details tab. In the Sales Orders section, enter US0001 as the Sales District
and ensure that USD is entered as the currency.

21. In the Billing section, enter FOB (Free on Board) as the Incoterms and Miami as the Incoterms Location
1. Also add 0001 (Payable immediately Due net) as Payment Terms.

22. In the Shipping area, select Normal item from the dropdown list as the Delivery Priority and Standard
as the Shipping Conditions. Add MI00 (Miami) as the delivery plant.

23. In the Accounting area, select Domestic Revenues as the account assignment group from the
dropdown list.

For Partial Deliveries, use the dropdown list in the field Partial delivery per item and thus select Partial
delivery allowed.

In Pricing and Statistics, for Price Group, use the dropdown list to select Bulk Buyer as the Price Group
and enter 1 (standard) as the Customer Pricing Procedure. Confirm your entries with Enter.

24. Then select the Taxes tab. Enter the tax classification 0 (Exempt) for all three tax classifications.
25. Select the button to save your adjustments as a draft. Then press to finish editing the client
role. To finally save the business partner, press the button .

26. The SAP system creates the master data record for the new BP and assigns a unique business partner
number. Make a note of the BP number, which you will find in the header.

27. Provide a screenshot of the unique business partner number. It is different for each user.

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28. Click on to return to the SAP Fiori Launchpad.

Step 2: Creating a contact person for a customer. (5 minutes)

As you have created the master data for your new client (The Bike Zone), you can build the master data for a
contact person. This contact person is an employee of the client company through whom Global Bike
communicates with The Bike Zone.

1. In the space Sales and Distribution in the section Sales Representative, use the app Manage Business
Partner Master Data to create a contact person.
2. In the Manage Business Partner view, select the item . A submenu opens. Click here on Person.

3. In Create Person, click the value help icon in the BP Role field. In the pop-up, search for Person and
then select the entry BUP001 | Contact Person.

4. Enter the Person Title, First Name, and Last Name of your choice. Add your number (###) to the
fictitious surname. It will make it easier for you to identify your entry later if persons with the same name
have been created. Please enter US as the Country and EN as the Language. Confirm your entries
with .

5. A new overview is generated. In the General Information section, add your three-digit number ### again
in the Search Term 1 field.

6. Click on to save your business partner. The SAP system creates the master data record for the
new contact person and assigns a unique business partner number (header).

7. Provide a screenshot of the unique business partner number. It is related to the unique business partner
number previously.

8. Click on to return to the SAP Fiori launchpad.

Step 3: Creating a BP relationship. (5 minutes)

The contact person created for The Bike Zone needs to be assigned as a business partner within the customer
master.

1. Under Sales Person, use the Manage Business Partner Master Data app again to customize a business
partner.

2. In the Manage Business Partner Master Data view, enter your Business Partner Number (Task 1) in
the Business Partner field. Alternatively, you can enter Orlando as the Location and *### as the Last
Name/Name 1.
3. Then press the button . Your business partner should be displayed accordingly.
4. Click on your Business Partner to display the Master Data record. Then press in the upper area.
The editing mode opens.
5. Select the Contacts tab. Click on to create a new row in the Contacts section.

6. In the Contact Person field, click on the value help icon . In the pop-up window that opens, enter the
Business Partner Number of your contact person in the Business Partner field. Alternatively, you can
also use the First Name and Name. Then press the button .

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7. Your business partner is displayed accordingly. Select it with one click to enter it as a contact person
for your customer (The Bike Zone). Click on to apply your changes to the business partner.

8. Call the attention of your instructor to check if the contact is linked.

9. Click on to return to the SAP Fiori Launchpad.

Step 4: Creating customer inquiry. (10 minutes)

Now, we will enter an inquiry from our new customer, The Bike Zone.

1. In the section Sales Person, use the Manage Sales Inquiries app to create an inquiry.
2. To enter a new sale inquiry, click on .

3. Enter the abbreviation IN (Inquiry) as the Inquiry Type and UE00 (US East) as the Sales Organization.
Also add WH (Wholesale) to the Distribution Channel field and BI (Bicycles) to the Division.

4. Then select , in the lower screen area to be able to enter further data for the request.

5. In the Ordering party field, enter the Business Partner Number of your customer, The Bike Zone.

6. Enter ### as the Customer Reference and enter today's date in the fields Customer reference date
and Valid from (F4, then Enter). For the Valid until and Requested delivery date fields, enter one month
from today.

7. The Bike Zone would like a quote for two products: The Deluxe Touring Bike (black) and the
Professional Touring Bike (black). To find these products, use the search function. Click in the Material
field and then click on the value help icon ..

8. On the Material by Description Tab, enter *Bike* as the Material Description and *### (e.g. *003 if your
number is 003) as the Material.

9. Then click on to start the search process. You will get results whose material short text contains
"Bike" and whose abbreviation ends in "###".

10. Double-click on the Deluxe Touring Bike (Black) to select it. In the following screen, enter an Order
Quantity of 5.

11. Repeat the process for the second item, searching for a Professional Touring Bike (Black) as the
Material and entering an Order Quantity of 2. Select Enter to determine the price for this request.
Confirm the message that appears.

12. The total price for these 7 bicycles for The Bike Zone is 21,400 USD (net value). The expected order
value is a calculated value that multiplies the net value of the order quantity by the probability that a
request from this customer will result in an actual order. Select both items and click on .

In the lower area of the General Sales Data, you will find the field Order Probability. This expresses the
percentage probability that an inquiry or quotation item will result in a sales order. Assuming this order
probability would be 30%, the expected order value would be 0.30 x 21,400.00 USD = 6,420.00 USD.

13. Changing the order probabilities may make sense because different requests from customers have
different probabilities. Change the Order Probability for the material DXTR### to 70. Then click on
(Next item) in the upper area to go to material PRTR1###.

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14. Also enter an Order Probability of 70 there. Confirm your change with Enter. Click on (Back) to
update the request and note the new expected order value of 14,980.00

15. Click on to save the request. The SAP system will assign a unique number to the request.

16. Provide a screenshot of this unique number.

17. Click on to return to the SAP Fiori launchpad.

Step 5: Creating customer quotiation. (10 minutes)

The Bike Zone would like a firm quote for the items in the inquiry created before. We can do this easily by
copying the details from the inquiry into the new quotation.

1. In the space Sales and Distribution and in the section Sales Representative, use the Manage Sales
Quotations app.
2. To create a new sales quotation, click .

3. In the Quotation Type field, please enter the code QT (Quotation). In the lower screen area, click
.

4. In the Create with Reference pop-up that opens, you can search your inquiry and thus, copy the data
into the quotation. For this purpose, make sure that the Inquiry tab is selected. In the Inquiry field, enter
your inquiry number.

5. Then click and double-click your order. Your inquiry number will be copied to the Create with
Reference window accordingly.

6. Click to copy the information from the inquiry to the quote screen. This will produce a new
screen.

7. As Cust. Reference enter again ### and as Cust. Ref. Date type in today’s date. In the Valid To field,
please add one month from today. Check if the Req. Deliv. Date is set to one month from today.

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, as well as a 5% discount on the entire order.

8. To add the $50.00, select the Deluxe Touring bike line in the order, then click on (Item Conditions).
You will get a screen that shows the pricing details for your Deluxe Touring Bike.

9. To add a discount, you can add condition type K004 (material discount) under CnTY with an amount of
50 to the pricing procedure.

10. After confirming your entry, a new price for the 5 Deluxe Touring bikes will be calculated.
11. Note that the discount is now applied to the order. Click return to the main quotation screen. To
apply a 5% discount to the entire order, follow the pull-down menu path: More ► Goto ► Header ►
Conditions.

12. To apply the 5% discount, enter RA00 with an amount of 5. Confirm your entries and note that the price
does not yet include the 5% discount.
13. To include the 5% discount, click . The 5% discount is now applied. Note that it is applied
to the price after the $50 discount per Deluxe Touring bike.

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14. Click on to save the new quotation.

15. Provide a screenshot of the quotation number.

16. Click on to return to the SAP Fiori launchpad.

Step 6: Creating a sales order with the reference to a quotation. (10 minutes)
The Bike Zone has agreed to the terms and conditions in the quotation, and wants to order the bikes in the
quotation. As a result, we can simplify the order creation process by copying the quotation into a sales order.

1. In the space Sales and Distribution and in the section Sales Representative, you can use the Manage
Sales Orders app to create a sales order.

2. To create a new sales order, use the button.

3. On the Create Sales Documents screen, in the Order Type field, please enter the code OR1 (Standard
order). In the lower screen area, click on the button.

4. In the Create with Reference pop-up that opens, you can search your quotation and thus, copy the data
into the order. For this purpose, make sure that the Quotation tab is selected. In the Quot. field, enter
your quotation number.

5. Click to copy the information from the quotation to the sales order screen. Due to the discounts
granted in the offer, please note the Net Value has been reduced.

6. As Customer Reference enter again ### and as Customer Reference Date type in today’s date. Please
note that the Requested Delivery Date has been copied from the quotation. Click and write down
the number of your sales order.

7. Click on to return to the SAP Fiori launchpad.

Step 7: Checking the inventory. (5 minutes)

We can check on the inventory level of the bikes in the sales order for The Bike Zone.

1. In the space Sales and Distribution and in the section Sales Representative, you can use the Stock –
Multiple Materials app.

2. Due to the high amount of materials, it is not recommended to search without further restrictions.
Therefore, in the Material Number field, please use the input help icon .

3. In the pop-up that opens, as Description enter *TOURING* and as Material type in your number (*###).

4. Click to run the search and to generate a result list of all “touring” bikes containing your number
“###” in the material code. Select the Deluxe Touring Bike (black) and the Professional Touring
Bike (black). To copy your selection to the initial screen, click on the button.

5. Back in the Stock – Multiple Materials overview, as Plant enter MI00 (Miami) and as Storage Location
type in FG00 (Finished Goods). Click to display the corresponding stock levels.

6. This report shows the stock levels for the plant in Miami.

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7. Scroll to the right to see the unrestricted stock. Call on the attention of the instructor to show the
unrestricted stock.

8. Provide a screenshot of the unrestricted stock.

9. Click on to return to the SAP Fiori launchpad.

Step 8: Tracking the processing status of the sales order. (5 minutes)

With relatively little user input, the sales order for The Bike Zone has been created. The Track Sales Orders
app provides the opportunity to review the order in detail.

1. To display and track a sales order, in the space Sales and Distribution and in the section Sales
Representative, please use the Track Sales Orders app.

2. You will see the standard view of the app. In the Search field, enter your number (###) and click to
run the search process. Your order will be displayed in the result list. There you can already see first
details like the Overall Fulfillment status or the Net Value.

3. Please click on the line containing your sales order. You will be forwarded to the Track Sales Order
Details screen, where you can see all the details of the order.

For example, you can see that the quotation processing has been fully processed (“fully referenced”),
but that the processing of the standard order is currently still “open”. You can also see the requested
delivery date of the order and the planned delivery in the overview.

4. Afterward, please click on the Items tab. There you will see a list of the ordered bikes and the quantity
shipped or already invoiced.

5. Go back to the Process Flow tab and click on your Standard Order. A context menu opens.

6. Choose , and in the pop-up that opens, please select the entry Display Sales Order - VA03.
You will be forwarded to the corresponding app.

7. In the All Items section, select the line with the Professional Touring Bike and click (Display
Availability) to check availability in detail.

8. The Availability Overview screen shows that, in this case, there are actually 80 bikes in stock and the
order you are displaying will use 2 of these.

9. Choose . If this button is not displayed, you will find the entry in the pull-down menu under:
More ► Scope of check. The a screen will be displayed.

This screen displays the elements considered when performing the availability check. For example,
With Purchase Orders is selected, which means that a purchase order will be considered as available
stock from its receipt date onward.

10. Click to close the pop-up window and click to return to the appointment order overview.

11. Select the Deluxe Touring Bike and click (Item Conditions) to view the conditions again. Note that
the two discounts have been manually applied to this item.
12. Click on to return to the SAP Fiori launchpad

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Reminders:
• Consolidate the screenshots in a MS Word file.
• Call on the instructor to check your outputs before submitting a PDF copy on eLMS.

Rubric for grading per image:

CRITERIA Excellent (5) Good (3) Unsatisfactory (1) Total

Neatness and All captured images Most of the captured Almost none of the captured 20
Organization (x4) are clear and well- images are clear and images are clear and well-
organized. well-organized. organized.

Titles, labels, and All images and the Most of the images and Almost none of the images 10
headings (x2) files are properly the files are properly and the files are properly
labeled and named, labeled and named, labeled and named,
respectively. respectively. respectively.

Total 30 points

Reference:
2022 SAP SE/SAP UCC Magdeburg. All rights reserved.
.

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