SAP University Alliances

Version

1.0

Authors Stephen Tracy

Bret Wagner
Stefan Weidner
(revised Paul Hawking)

Product
SAP ERP 6.0
Global Bike Inc.

Level
Beginner

Focus
Cross-functional integration
SD, MM, PP, FI, CO

Introduction to SAP ERP

Abstract
This teaching material is intended to explain how the
fundamental business processes interact with SAP
ERP in the functional areas of Sales and Distribution,
Materials Management, Production Planning,
Financial Accounting, Controlling, and Human Capital
Management.

Introduction to ERP systems and SAP

The Global Bike Company
Sales and Distribution
Materials Management
Production Planning
Sales and Distribution
Financial Accounting
Controlling

SAP ERP

What is an Enterprise Resource Planning System?

An ERP System can be defined as a

modularised, integrated, real time
information system with broad functional
scope responsible for the processing and
management of business transactions
(Hawking 2005)

SAP ERP

ERP System Drivers

Executive
Management

Middle
Management

Operational
Management

Operations

Finance

Sales
Human
Production
Distribution
Resources

SAP ERP

ERP System Drivers

Executive
Management

Middle
Management

Operational
Management

Operations

Finance

Sales
Human
Production
Distribution
Resources

SAP ERP

ERP System Drivers

Executive
Management

Middle
Management

Operational
Management

Operations

Finance

Sales
Human
Production
&
Resources
Distribution

SAP ERP

ERP System Drivers

Executive
Management

Middle
Management

Operational
Management

Operations

Finance

Sales
Human
Distribution Production Resources

SAP ERP

Example: Core Business Solution Landscape

Customer Systems
Supply
Chain
Management

Configure
Vehicle
Loads

Warehouse
Management
Systems

Ordering
Stock
Transfer
Order

CRM
5

Pricing
Conditions
Promotion

140 different
EDI and ALE
interfaces

Conditions
Replenishment

Sales
Order

Delivery
Note

Plan
Replenishment
Shipment

Shipment

Transport
planning
System
Carrier
Selection
Update
Shipment
Status

System of
Customer
Sales
Order
Request
to change
sales order
any time

System of
Carrier
Request
Accept?
No / Yes

Appointment

Schedule

External A
Barcode 4
Reader
in n small
warehouses

Goods
Issue
Invoice

In transit

Receive
Order
Invoice

Interfaces - Intel (1995)

SAP ERP

SECURITY
HELP
RCC

ELECTRONIC
TRANSFER

DAISY

PRICE
BOOK

WMS

Configurator
CUSTOMER

EUC
EXTRACTS

PNA

SARP

PRICE

NOVA

AGREEMENTS

INFRASTRUCTURE

MDS
JAPAN
FORECAST

CWS

JAPAN
DAISY

STAR

JASTAR

ESTAR

PGS
JAPAN
PRICE
BOOK

PRICE
BOOK

EDI

G/L

COMPONENTS
COST
NIMS

EUC
EXTRACTS

DPA

A/P

PRODUCT
CODE

OEM
QUOTE

MAX

RST
EUC
EXTRACTS

DEMAND
FORECAST

AVAILABILITY

EDI

EUC
EXTRACTS

DPA

A/R
PMS

DARE

CLS
AMAPS

GPS II

DATA
WAREHOUSE

ISET
MPS

GIMS

SAP ERP

ERP Drivers
Systems Not Y2K Compliant

42%

Disparate Systems

37%

Poor/Uncompetitive Performance

27%

Program Motivation

Poor Quality/Visibility of Info

26%

Cost Structure Too High

24%

Not Responsive Enough to Customers

21%

Complex, Ineffective Business Processes

20%
19%

Business Processes or Systems Not Integrated

Unable to Implement New Business Strategies

15%

Business Becoming Global

15%
12%

Difficult to Integrate Acquisitions

11%

Obsolete Systems

10%

Inconsistent Processes
6%

Unable to Support Growth

0%

5%

10%

15%

20%

25%

% Respondents
Note: Based on multiple answers per respondent

Source: Deloitte Consulting and Benchmarking Partners

(Based on a study of 62 companies that have gone live with an ERP system)

30%

35%

40%

45%

SAP ERP

Enterprise Resource Planning Systems (ERP)

ERP systems are the result of business process

engineering.
They are information systems that facilitate the
flow of information between all functions within a
business.
They organise and execute the millions of
transactions that are fundamental to many large
businesses.
One huge database for storing transaction data.
Eliminate many of the existing legacy systems.

SAP ERP

ERP Characteristics

Links all business processes automatically

Reduce inter-processing time (transactions
occur one time at the source)
Maintain an audit trail of all transactions
Utilises a common database
Perform internal conversions automatically (tax,
foreign currency, legal rules for payroll)
Improve customer service by putting data at the
fingertips of employees
Involve employees in the entire functional cycle

SAP ERP

ERP Evolution
EDI

Planning
Scheduling

e-Commerce
SFA
CRM

e-business

SCM

Distribution
MRP

MRP11

Payroll

HR

GL
AP

AR
1970s

ERP

ERP

FMIS

1980s

1990s

2000s

SAP ERP

ERP System

Finance

Enterprise
Resource
Planning
System

Executive
Management
Human
Resources

Middle
Management

Operational
Management
Sales
&
Distribution

Production

Operations

SAP ERP

ERP Benefits
Inventory

Personnel Reductions
Productivity Improvements

Tangible Benefits

IT Cost Reduction
Cash Management
Revenue/Profit
Procurement
Order Management/Cycle Time

Time-based
benefits have
exceeded original
expectations

Financial Close Cycle

Maintenance
Transportation/Logistics
Supplier Managment

Anticipated
Actual

On-Time Delivery
0%

5%

10%

15%

20%

25%

30%

35%

% Respondents With Measurable Results

Source: Deloitte Consulting and Benchmarking Partners
(Based on a study of 62 companies that have gone live with an ERP system)

40%

45%

50%

SAP ERP

SAP R/3: Order Entry IBM Storage

Benchmarks - 110 days after production

Focus Area

Enter pricing data into system

5 - 80 Days

5 Minutes

5 Minutes

Check customer credit upon order

15 - 20 Minutes

Automatic

Automatic

Enter customer order in system

30 Minutes

5 Minutes

15 Minutes

% Manual order/ship to total # of orders/ships

75%

0%

0%

Generate customer invoice after ship

2 - 23 Days

1 Day

8 Hours

Respond to customer billing inquiry

15 - 20 Minutes

Real Time

Real Time

Ship evaluation unit from customer request

3 - 30 Days

2 Days

2 Days

Ship repair/replacement part

3 - 44 Days

2 Days

3 Days

1 - 5 Months

5 Days

10 Days

2 Hrs 3 Weeks

Real Time

Credit returned drive

Obtain commit date for customer order

Unconstrained SJ manufactured drives
Allocated; non-SJ manufactured drives

Reengineered
Target 10/1/93

SAP
Performance
01/20/95

9/1/93
Cycle Time

Real Time
2 Hrs3 Weeks

Toyotas Benefits

SAP ERP

Create
Sales
/Prodn
Plan

Final
Prod'n
Schedule

Create
Sales
Order

Complete
Finished
Vehicle

Create
Invoice to
Finance
Company

Payment
From
Finance
Company

Create
Retail
Delivery
Record

TOPS
POST
EXCEL

POST
BSS

VTS
VOS

BSS
ALC
VTS

BSS
VTS

VTS

VTS
MSA

MSA

VTS

ERP

ERP

ERP

ERP

ERP

ERP

ERP

ERP

ERP

POST

POST

Leadtime

Flexibility

Cost

Lean
Org.

Enquiry on Complete
Vehicle
Delivery to
Status
Dealer

Systems
Current

Future

ALC

Benefits

O = No Change D = Improvement

SAP ERP

Benefits Achieved

Davenport 2003

SAP ERP

ERP Implementation Budget

Design and
implementation
35%

Software
10%

Hardware
10%
Training
and
change management

Data
cleansing
10%

35%

Hammer 20000

SAP ERP

Lifecycle of ERP Implementations

Definition of Complete

Never Complete

49%

Go Live

34%

Stabilization Achieved

19%

Capabilities Realized

16%

Benefits Realized

10%

Legacy Turned Off

Funding Over

3%
1%

0%

10%

20%

30%

40%

50%

60%

% Respondents
Source: Deloitte Consulting and Benchmarking Partners
(Based on a study of 62 companies that have gone live with an ERP system)

Note: Based on multiple answers per respondent

SAP ERP

WHY Study ERP Systems

Diffused many best

practices
Changed the nature
of information
systems function
Changed the nature
of jobs in all functional
areas
Costs are high

Affects most major

corporations
Affects competitor
behaviour
Affects business
partners requirements
Changed the nature
of consulting firms
A tool for
reengineering

SAP ERP

Systems Applications and Products

SAP AG in 2005 revenues: 8.5 billion

35,873 SAP employees (Dec, 2005)

40,000 customers run SAP with over 100,000

installations in 80 countries
More than 10 million users worldwide
Biggest company > 300,000 users
Smallest company < 50 users

~ 250 million lines of code

More than 1,600 partners

SAP ERP

Analyst Rankings

SAP ERP

SAP Revenue

SAP ERP

SAP R/3 American Customers

(Curran and Kellar 1998)

6 out of top 10 Fortune 500 companies

7 out of the top 10 most profitable companies
7 out of the top 10 pharmaceutical companies
7 out of the top 10 computer companies
7 out of the top 10 petroleum companies
7 out of the top 10 electronics companies
7 out of the top 10 chemical companies
7 out of the top 10 food companies

SAP ERP

Generic Solution Map SAP NetWeaver

SAP ERP

Detailed cascaded view

SAP ERP

SAP ECC

SAP ERP

SAP ECC

SAP ERP

SAP ECC

SAP ERP

SAP ERP

Then
Works with relational databases
8,900 relational tables
15,000 reports
12,000 screens
most users only interact with 10 screens

Now
37,000 tables

SAP ERP

R/2 Realtime 2

SAP ERP

R/3 Realtime 3

SAP ERP

SAP R/3 Enterprise

SAP ERP

SAP ERP 2005 (ECC)

SAP ERP

SAP ERP 2005

SAP ERP

SAP ERP 2005

SAP ERP
Analytics

Accounting,
Corporate
Governance,
Financial Supply
Chain,
Management
accounting,

SEM, Financial
analytics,
Workforce
analytics,
Operations
analytics,..

Employee
Relationship,
Lifecycle and
transaction, SAP
e-recruitment,
SAP Learning,

Travel,
EH&S,
Incentives &
Commissions,
Real Estate, ..

HCM

Corporate
Services

Operations

Financials

Order to cash,
Internet Sales

Marketing
campaign,
Opportunity &
Contact, CIC

mySAP
CRM

Procure to Pay,
Self-Service
procurement,
MRO

Strategic
sourcing,
Auctioning

mySAP
SRM

Design to
Manufacture

Audit
management

mySAP
PLM

Planning,
Make-to-XXX,
Dock to
dispatch

Coll. demand
planning, Global
ATP, SNP, cHub,
..

mySAP
SCM

SAP ERP

Product Lifecycle Management

SAP ERP

Supplier Relationship Management

SAP ERP

Supply Chain Management

SAP ERP

Supply Network Planning

SAP ERP

Customer Relationship Management

SAP ERP

What are your

customers
priorities and
preferences?

Customer Relationship Management

Who are your
most profitable
customers?

How can you attract

more customers
like them?

How do you determine

which customers you
want to acquire or
retain?

Do you really know which

product your best customers
buy and how they respond to
your promotions and
campaigns?

How can you efficiently

focus your resources
on the most desirable
customers?

SAP ERP

SAP Solution Manager Scenarios

Implementation of
SAP solutions

Solution Monitoring

CORE

Upgrade of
SAP solutions

Change Request
Management

BUSINESS

Service Desk

PROCESSES

Root Cause Analysis

Delivery of SAP Support Services

SAP ERP

Industry Solutions

Available for mySAP ERP 2004

SAP for Aerospace and Defense
SAP for Apparel and Footwear*
SAP for Automotive
SAP for Banking
SAP for Beverages
SAP for Chemicals
SAP for Consumer Products
SAP for Defense and Security
SAP for Engineering, Construction & Operations
SAP for Global Trade Management
SAP for High Tech
SAP for Industrial Machinery & Components
SAP for Life Sciences
SAP for Logistics Service Providers
SAP for Mill Products
SAP for Oil & Gas - JVA
SAP for Pharmaceuticals
SAP for Postal Services
SAP for Professional Services
SAP for Public Sector
SAP for Railway Services
SAP for Retail

* Available only in mySAP ERP 2004 not planned for mySAP 2005

Available for SAP R/3

SAP for Healthcare
SAP for Higher Education & Research
SAP for Insurance
SAP for Media
SAP for Mining
SAP for Oil & Gas
SAP for Telecommunications
SAP for Utilities

SAP ERP

Integration Solutions - NetWeaver

SAP ERP

Small to Medium Enterprise Solutions

SAP ERP

SAP Key Business Elements

Organizational Unit

Master Data

Transaction

Document

Report

SAP ERP

Definition

Definition of Organizational Elements:

In the SAP System, organizational elements form

structures that represent the legal and
organizational views of a company. These views
include: accounting, manufacturing planning and
execution, materials management, and sales and
distribution.
In summary, the organizational elements and their
structures form the framework in which all business
transactions are processed.

SAP ERP

Enterprise Structure Terminology

SAP
Enterprise
Enterprise

Company
Company

Client
Company
Code

Subsidiary
Subsidiary

Plant

Factory
Factory

Sales
Organization

Sales
Sales
Organization
Organization
Department
Department
Warehouses
Warehouses

Division
Division

Business
Business
Area
Area

Division
Storage
Locations

SAP ERP

Definition of Client

Highest Hierarchical Level in SAP(e.g. a corporation)

Can be Used to Differentiate between a Development, Quality
Assurance, and Production System within R/3
All Areas of an Organization that are to be Integrated into the SAP
R/3 Production System should be Included under one Client
Common Set of Rules primarily for external reporting
Common Tables
Common Master Files
Common Data Bases
Standardized Data Common Across the Client
a vendor number and name (vendor master data)
a customer is common across the client
a general ledger number and description
a material number and description

SAP ERP

Clients in Implementation

SAP ERP

Master Data-Customer Master

General Data
(cross-enterprise)

Master Data
(Customer Master Data)
Sales Data
Financial

(only salesrelevant data

Accounting
Data
(only relevant for
company code)

Master Data: Material Master

SAP ERP

Views of the Material Master

Purchasing
Purchasing

Material
Material Master
Master Record
Record

Sales
Sales

Definition:
Definition:
Engineering/
Engineering/
Design
Design

The
The material
material master
master

Costing
Costing

is
is aa central
central data
data object
object
Materials
Materials
Planning
Planning
Stock
Stock in
in
Plant/Storage
Plant/Storage

in
in the
the SAP
SAP R/3
R/3 System.
System.
ItIt represents
represents

Work
Work
scheduling
scheduling

raw
raw materials,
materials,
supplies,
supplies,

Forecasting
Forecasting

expendables,
expendables,
A
XX

B
XX

Financial
Financial
Accounting
Accounting

semi-finished
semi-finished goods,
goods,

products,
products,
production
production resources
resources

Storage
Storage

and
and tools
tools

Classification
Classification

Warehouse
Warehouse
management
management

SAP ERP

Transaction-Using Master Data

Customer
Customer Master
Master

Material
Material Master
Master

Ordering Party

1xxx

Item

Material

Quantity

10

HD-1300

20

P-103

SAP ERP

Transaction-Using Organisational Units

Company
Company Code
Code

Customer
Customer
Master
Master

Material
Material
Master
Master

Ordering Party

Item

1xxx

Material Quantity

10

HD-1300 1

20

P-103

Sales
Sales
Organization
Organization
Distribution
Channel
Distribution
Channel
Division
Division
Plant
Plant
Storage
Storage
Location
Location

Sales Document

Introduction to ERP systems and SAP

The Global Bike Company
Sales and Distribution
Materials Management
Production Planning
Sales and Distribution
Financial Accounting
Controlling

SAP ERP

SAP University Alliances

Version

1.0

Authors Stephen Tracy

Bret Wagner
Stefan Weidner

Global Bike Inc.

Product
SAP ERP

Abstract

Level
Beginner

This material explains the company on

Focus

which the introduction material is based

Global Bike Inc.

Integration

on. It describes its enterprise structure in

detail.

SAP ERP

Global Bike Incorporated

Company in the bicycle business

Initially buys and re-sells different lines of
bicycles
Sells to both wholesale and Internet
procure and distribute
Later acquires a production facility to
manufacture its own product produce
and distribute

SAP ERP

Core Business Processes

Global Bike Inc.

Sell Sales and Distribution (SD)
Buy Procurement (MM)
Plan Production Planning (PP)
Make Manufacturing Execution (PP)
Track Financial Accounting (FI)
Track Controlling (CO)

SAP ERP

Two Approaches of Learning

Standard Training
Level 1: Introductory
Level 2: Business processes
Level 3: Configuration

Business Process Integration Approach

Cross functional
Understand business processes and their
relationship to SAP's organizational structure
Highlight integration/configuration

SAP ERP

Enterprise Structure (Global Bike Inc.)

Credit Control
Area

Client

Fiscal Year
Variant

Chart of
Accounts

Company
Code

Controlling
Area

Purchasing
Organization

Plant

Purchasing
Group

SL10 SL20

Shipping
Point

Sales
Organization

Distribution
Channel

Division

Sales Area

Sales and Distribution (SD)

Sales Process

SAP ERP

Sales
Sales Order
Order
Processing
Processing
Inventory
Inventory
Sourcing
Sourcing

Pre
Pre --Sales
SalesActivities
Activities

Invoice

Payment
Payment

Billing
Billing

Shipping
Shipping

SAP ERP

Sales Process Pre-Sales

Pre-Sales is responsible for establishing and

maintaining customer relationships
Pre-Sales activities could include:

Creating and tracking customer contacts

Mailing campaigns
Answer customer questions received by fax email etc.
Inquiries
Quotations

Pre-sales information to plan and evaluate your

marketing and sales strategies and as a basis for
establishing long term business relationships with
your customers

SAP ERP

Sales Process Sales Order Processing

Employees in the company take orders

through a variety of mediums.
Phone
Fax
Internet

Standard Order usually contains:

Customer and material details

Pricing conditions for each item
Delivery dates and quantities
Shipping information
Billing information

SAP ERP

Sales Process Procurement

In this process in Sales and Distribution

you can:

Check the availability of ordered goods and

Publish the demand in material management.

Materials Management (MM) organises and monitors

the procurement process. This includes:
Inhouse produced goods
Externally produced goods

SAP ERP

Sales Process Shipping

Shipping process begins when

a delivery document is created.
The delivery document controls shipping
sub process:
Creating outbound deliveries
Picking
Packing
Posting goods issue

Data from the sales order is copied to

the delivery document

SAP ERP

Sales & Distribution Delivery

Warehouse

Sales
order

Delivery
document

Creating delivery
documents

Picking

..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
....
...
....
.. .. .. .
...
....
...
....
...
....
...

Shipping papers

Goods issue

Updating inventory
Updating general ledger

Manual Packing

SAP ERP

Sales Process Billing

to
Invoice

When you create a billing document, data

is copied from the sales order and the
delivery document to the billing document
Billing supports:

Creating invoices for deliveries and services

Creating credit and debit memos
Canceling previously posted billing documents
Automatically transferring billing document data
to accounting

SAP ERP

Sales & Distribution Interfacing to Finance

Invoice
Amount: 100

Accounting
100

When saving the invoice, the system automatically

generates an accounting document, which updates
the corresponding general ledger accounts.

SAP ERP

Sales Process Payment

The payment process is part

of the the financial accounting module.
Payment process supports:
Posting payments against invoices
Reviewing differences

SAP ERP

Sales & Distribution End to End Processes

S
A
L
E
S

Pre-Sales

I
N
F
O
R
M
A
T
I
O
N

Sales Order
Processing

S
Y
S
T
E
M

Contract
Contract

Quotation

M
A
T
E
R
I
A
L
S

Order
Order

Inventory Sourcing
Delivery

Billing

Delivery
Delivery

Picking
Picking

Goods
Goods Issue
Issue

Invoice
Invoice

Customer payment/
Financial Accounting
Accounts
Accounts
Receivable
Receivable

Material
MaterialStock
Stock
Account
Account

M
A
N
A
G
E
M
E
N
T

SAP ERP

Enterprise Structure

Defining your organizational structure in

SAP System is an important step. It
requires thorough analysis of how your
organization wants to run your business.
Enterprise Structuresin
Sales andDistribution

Sales Order
Processing
Procurement

Pre-Sales Activities

Invoice
Shipping

Payment
Billing

Organisational Units

SAP ERP

l
l

Company code

R /3
Sales Area

Sales organization
Distribution
Division

Plant

Storage location

shipping point

channel

Document

SAP ERP

Organisational Units Company Code

Legal entity and independent accounting

unit
At company code level you create:
balance sheets required by law
profit and loss statement
Company code

SAP ERP

Organisational Units Sales Organisation

A sales organization is responsible for:

distributing goods and services
negotiating sales conditions
products liability and recourse

A sales organization is uniquely assigned to a

company code.
A company code can have more than one sales
organisation
In sales statistics, the sales organization is the
highest summation level.
Sales organization

SAP ERP

Organisational Units Distribution Channel

Distribution Channel is:

A means for sales materials to reach the
customer
Represents the companies strategy to distribute
products and service to customers
Wholesale trade
Retail trade
Internet trade

A sales organisation must

have at least one
distribution channel

Sales organization

DistributionChannel1

DistributionChannel2

SAP ERP

Organisational Units Division

A division is used to group materials and

services
For example a product line (motor cycles,
services, spare parts)

A sales organisation can have several

divisions but requires at least one
Sales organization

Division 1

Division 2

SAP ERP

Organisational Units Sales Area

A sales area is a combination of the sales

organization, distribution channel, and division. It
defines the distribution channel a sales
organization uses to sell products from a certain
division.
Sales
organization

1 Frankfurt

Distribution
channel

2 Retail trade

2 Berlin

5 Internet

1 Wholesale
trade

Division

Sales
areas

2 Motorcycles

3 Computers

1
2
2

1
2
3

3 Computers

1
5
3

2 Motorcycles

1 Pumps

2
1
2

2
1
1

SAP ERP

Organisational Units Plant and Storage Locations

A plant location is where material stock is kept.

Can be used in all areas of logistics
Materials Management where stock is stored
Production Planning a manufacturing facility
Sales Distribution where material and services are
distributed from (corresponds with a distribution centre)

1
1

2
1

2
2

Plant 1

Plant 2

Plant 3

(Delivering
) plant

C
B
BB
A

Storage location

SAP ERP

Organisational Units Shipping Point

The shipping point is the highest-level organizational unit

of shipping that controls your shipping activities.
Each outbound delivery is processed by one shipping
point.
The shipping point can be a loading ramp, a mail depot,
or a rail depot. It can also be, for example, a group of
employees responsible (only) for organizing urgent
deliveries.
The shipping point is assigned to one or more plants.
Plant 2

shipping point

Plant 2

shipping point

SAP ERP

Customer Master

The customer master contains all customer-related data

necessary for processing orders, deliveries, invoices, and
customer payments.
Customer master information is shared between the
accounting and sales and distribution departments.

The customer master groups data into categories:

general data, sales and distribution data, and company
code data.
General data
Sales & Distribution data
Company code data

SAP ERP

Master Data in Sales & Distribution

Customer Master & Business Partners

Customer master records can be defined as business

partners. The following four partners are mandatory in the
sales order:

Sold-to party

Ship-to party

Customer
Master

Bill-to party

Payer

SAP ERP

Master Data in Sales & Distribution

Customer Master

General
Data

Company Code
Data

Sales Area
Data

SAP ERP

Customer Master
View

General
Data:

Field Groups

Address

Address
Communication

Control Data

Account Control
Tax Information
Reference Data/Area

Marketing

Classification
Operating Figures
Sales Prospecting

SAP ERP

Customer Master
View

General
Data:

Field Groups

Payment
Transactions

Bank Details
Payment Transactions

Unloading
Points

Unloading Point
Customer Factory Calendar

Contact
Person

Name
Telephone
Department

SAP ERP

Customer Master
View

Company
Code Data:

Field Groups

Account
Management

Account Management
Interest Calculation
Reference Data

Payment
Transactions

Payment Data
Automatic Payment Transactions
Payment Advice Notes

Correspondence

Dunning Data
Correspondence
Payment Notices To

Insurance

Export Credit Insurance

SAP ERP

Customer Master
View

Sales and
Distribution
Data:

Field Groups

Sales

Sales Order
Pricing

Shipping

Shipping
Partial Delivery Data
General Transportation Data

Billing

Billing
Delivery and Payment Terms
Accounting
Tax Jurisdiction

SAP ERP

Customer Master
View

Sales and
Distribution
Data:

Field Groups

Output

Category
Type

Partner
Function

Partner Function
Customer Number

SAP ERP

Material Master

The material master contains all data required to

define and manage material. It integrates data from
engineering, manufacturing, sales and distribution,
purchasing, accounting, and other departments.
The material master is used as a source of data for
sales order processing throughout the customer order
management cycle.
General data
Purchasing data
Accounting data
Sales data
Manufacturing data
(etc.)

SAP ERP

Pricing Master
Conditions

Prices

(PR00)
Price list
Material price
Customer-specific
Other

Discounts/surcharges

Customer (K007)
Material
Price group
Material pricing group
Customer/Material pricing group
Customer/Material group (K030)
Others

Pricing is carried out automatically based on predefined prices,

discounts, and surcharges.

SAP ERP

SD Master Data

Customer Master

Material Master

Sales Condition

SAP ERP

Business Process Flow in SAP

Order

Delivery

Invoice

Payment

Document flow of a sales document

Order 900
. Delivery 80000459
. . Picking request 17951109
. . GD goods issue: delvy 49001828
. . Invoice 90000333
. . . Accounting document 100000276

Sales documents represent transactions in the system.

They form a chain of related documents.

The entire chain of documents creates a document flow.

The system copies data from one document into another to reduce data
entry and make problem resolution easier.

SAP ERP

Incompletion Log

Sales and Distribution Process

Organisational Units
Master Data

Internet and Sales

Reporting

Reporting in Sales and Distribution

SAP ERP

Information sources in Sales and

Distribution
List / worklist

Lists and reports

online lists and online reporting

worklists

document

flow

Sales Information System

information structures

standard analyses

SAP ERP

Sales Information Systems

Lists and Reports

SAP ERP

Lists and Reports

l Online lists

Backorders

provide data from documents

display documents, for example,

for a customer or a material
with a specific status

allow you to review and change

documents

Open

quotations

l Worklists
Delivery list

Billing
due list

SAP AG 1999

display work that needs

to be processed

allow you to organize tasks into efficient

work units

Document Flow
SAP ERP

Document Flow

Standard
order

Outbound
Delivery

Invoice

Accounting
document

Document
Standard order 6839
. Outbound delivery 80002832
. . WMS transfer order 482
. . GD goods delivery: delvy 4900001537
. . Invoice 90005371
. . . Accounting 100001276
SAP AG 1999