Welcome to Level 2 Training

By LGS Team

Sales & Distribution in SAP R/3

1. Sales & Distribution An Overview 2. Organizational Units in SD

3. Master Data
4. Sales Order Processing 5. Sales

6. Shipping
7. Billing

Sales & Distribution Processing

Sales & Distribution Organizational Structure

Organization Structure in Sales & Distribution

Client Sales Organization
009

Every sales organization stands for a selling unit in the legal sense, being responsible, for example, Salesfor Area product liability and other recourse claims made by is defined as a combination of sales Sales Organization A sales area 1000 1001 organization, customers. Regional subdividing ofand the division. market can distribution channel Via the sales area it is possible to also be carried out with the help of sales Distribution Channel specify which materials can be sold through a distribution channel. organizations. Within a sales area you can carry out analyses. For example, the A means of distributing goods. For example: Retail, can be defined per sales area. For example, you can define a represent typical forms of distribution channels. Product groups, i.e. divisions, can be defined for a customer-specific agreement for each sales area. wide-ranging spectrum of products. price For every division you can make customer-specific Division 01 for example, 02 01 02 01 02 agreements on, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing

1002

Distribution 10 a sales area 20 10 sales within can be analyzed. All data relevant for sales wholesales, industrial consumption or direct sales Division Channel

20

01

Sales & Distribution Organizational Structure

Internal Organization Structure in Marketing

Client

Sales Office

009

Geographical aspects of the organization in business development and sales For example, the branch in Bombay as a sales office.Sales Delhi Sales Officecould be designated offices are assigned to sales areas. If you enter a sales order for a sales office within a certain sales Sales Group area, the sales office must be assigned to that area.. Sales group 001 002 003 The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions. Salespersons

Mumbai

003

003

Sales Personnel 01 02 03are used 04 to manage 05 Individual personnel master records (Employee data about salespersons. A sales person can be assigned Number)
to a sales group in the personnel master record

06

07

08

09

Sales & Distribution Organizational Structure

Organization in Shipping

009 Shipping points are responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to your own warehouses The shipping point depends on the following criteria: Forwarding Shipping Jetty depot points Delivering plant

Shipping Point

Client

Rail depot

Type of shipping ( e.g.., train, truck)

Loading equipment necessary Loading Point

Loading Ramp Ramp 2 Ramp 3 Shipping points can 1 be subdivided in loading points. For points
example, ramp 1, ramp 2 and ramp 3 belong to the shipping point Forwarding depot.

Master Data

Master Data

Features in Sales & Distribution

Minimum Order Quantity The minimum quantity the customer must order. A warning message appears if the minimum order quantity is not reached during order entry. The order can be entered in spite of the warning message.

Minimum Delivery Quantity The minimum quantity to be delivered to the customer. A warning message appears during delivery processing if a delivery quantity lower than the minimum delivery quantity is entered. The delivery can be created in spite of this warning message.

Customer-Material Information Records

If a customer manages a material with a number that differs from the one your company uses, customer-material information can be stored and used when required.

Item Proposals Frequently occurring material combinations and common delivery quantities can be stored in item proposals. An item proposal, containing the materials a customer usually orders, can be assigned to that customer, which is then automatically proposed during order entry.

Master Data

Master Data
Unit of Measurement:

Base Unit of Measure

Alternative Unit of Measure

Sales Unit Delivery Unit

Delivering Plants
The delivering plant from which the goods are to be delivered to the customer, within a specific sales organization and distribution channel, can be automatically proposed by the system when processing a sales order, if it has been maintained in one of the master records

Blocking a Material Master Record (Sales Status)

If a material has technical defects or is to be discontinued, the material can be blocked

Master Data

Associated Master Data

Customer Master: The customers master maintained for the company. Material Master: The materials master maintained for the company. Conditions Master: The conditions maintained for the company, customer and material. Customer Material Info Record Master: The customer-material info record master maintained for customer-material

Master Data

Associated Business Partners

A business partner can be a natural or legal person who is directly involved in a business transaction. The following partner functions are defined in the system :

Sold to Party
Ship to Party Bill to Party Payer

Sales Order Processing

Sales Order Processing

Integrated Document Flow in Sales

Sales Inquiry

Quotation

Inquiry
Return Order Order

M a t e r i a l s M a n a g e m e n t

Shipping

Free Of Charge Subsq.Delivery

Delivery

Free Of Charge Delivery

Billing Credit Memo Billing Doc. Debit Memo

Financial

Management

Sales Order Processing

Header Data

Sold-to party & Ship-to party Document currency and exchange rate Pricing elements Delivery date and shipping point

Item Data

Material number Target quantity Ship-to party and the payer Plant and storage location Pricing elements

Schedule Line Data

Schedule Line Quantity Delivery Date Confirmed Quantity

Sales Order Processing Business Document Types

Sales Order Processing

Computer Aided Sales

Sales

Sales

Pricing
During sales order entry, the system can calculate prices automatically by finding a gross price, deducting all the relevant discounts and adding any surcharges such as freight and sales tax.

Pricing Elements

Prices Discounts/ surcharges Freight Taxes

Price List

Material Price Customer specific By Customer By material By Price Group By Material Group Incoterms (Part 1) Incoterms (parts 1+2)

Shipping

Shipping

Shipping Document Data

Shipping Document Structure

Detail Screen Shipping point Overview Data on delivery scheduling Screen Header Data

and transportation scheduling Weights and volumes of the entire delivery Number of the sold-to party and the ship-to party

Shipment Weight Unloading point Delivery date Gross weight of No.of ship-to party every delivery Item item Status

Data

Picking Sold-to party Ship-to party Picked quantity

Volume for every delivery item

Material number The stage that the Delivery quantity processing of a Extent Delivery Retail price delivery item has Plant and storage location reached displayed On thisis delivery Plant and storage specifications on this screen screen, the open location Picking date quantity for every specification delivery item is Weights and volumes of item displayed Delivery Tolerances

Partner

Shipping

Features In Shipping

Delivery

Functions of the Shipping Document

Shipment documents are used to: Combine deliveries to form an outbound shipment Combine shipping notifications to form an inbound shipment 2 Types Specify shipment stages legs border crossing points load transfer points Data from Data from Data from Delivery Assign goods to shipping units Delivery Customer Master Material Master Sales Order With Reference Assign service agents Of Ship to Party Without Reference Into Of Delivery Specify planned transportation deadlines Delivery Items Record actual transportation deadlines Specify output required for transportation (such as transportation papers or EDI messages) Define transport-relevant texts

Shipping Shipping Process

The delivery is the central object of the shipping process. When the delivery is created, the shipping activities, such as picking or delivery scheduling, are initiated and monitored, and data that is generated during shipping processing is included in the delivery.

Shipping Point Order

Mail Xx xx Xx x x

Warehouse

Delivery Monitor Availability Check Creating Deliveries

Picking

Delivery

Goods Issue Transport

Shipping

Packing and Loading

Packed In

Shipping Units Delivery Goods Loading Features in Packing Packing delivery items in shipping units and dividing individual items into several shipping units. Multi-level packing Unpacking items that have already been packed System reactions when weight or volume limits are exceeded

Deleting shipping units

Emptying shipping units Fast entry of a shipping unit Changing packing quantities

Creating delivery items from shipping units

Shipping
GOODS ISSUE As soon as the goods leave their own plant, the activities of the shipping department are complete. This is displayed in the system by the goods issue.

Updating Stock Quantity F U N C T I O N S

O F

Evaluating & Updating Balance Sheet A/cs

Updating Delivery Status

G O O D S I S S U E

Billing Due List

Reduction Of Requirements

Updating the Preceding Documents

Billing

Types of Billing Document

Invoice Billing Document Type Name A sales document used to bill a customer for a goods F1 Delivery-related invoice delivery or a service.
F2 Delivery-related invoice

Debit Memo A sales document created on F8 the basis of a complaint. FP This increases receivables in Financial Accounting.
F5 G2 DR RE S1 S2

Credit Memo Pro forma invoice for sales order

Pro forma invoice for delivery the basis of a customer complaint.

A sales document created on

This reduces receivables in Financial Billing - POS system InterfaceAccounting.

Credit memo Pro Forma Invoice An invoice that is created for Debit memo exported goods to provide the customs authorities with Credit memo for returns evidence of the invoice costCancellation of the goods. Cancellation credit memo

Billing

Billing Methods
During billing, an invoice can be created for every delivery, or if required,can send the customer an invoice every month. The following methods may be used in Billing. Collective Billing Document Invoice Split Individual Billing Document

Delivery
Order Order Order Delivery Delivery Delivery

Invoice Invoice

Invoice
Invoice Invoice

Order

Delivery Delivery

Billing

Special Processes Billing Type

Down

Down Payments For Sales Orders Resource Intercompany Related Business Processing Down Payment Billing Request To
The Customer
( Posted in Financial Accounting as noted item )

Payments

In many cases, the prices for customer-specific activities are neither stored in the form of fixed prices nor calculated using standard pricing. Invoice Incoming payment for This is because it may be the first time that these particular activities are being carried out.Invoice down payment Intercompany Intercompany This means that there are no reference values on which requests Sales Stock to calculate a costing before closing the contract. Orders of this kind are billed according Transfer Processing toCancellation the resources consumed in executing them. Invoice In resource-related billing, the billing document details the individual materials, Invoice internal services, and costs for Invoice the customer.