Sales and Distribution (SD)

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Table of content

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Table of content
1 Sales and Distribution (SD) 1.1 Basic Functions and Master Data in SD Processing (SD-BF) 1.2 Pricing and Conditions (SD-BF-PR) 1.3 Availability Check and Requirements in Sales and Distribution Pr 1.4 Credit and Risk Management (SD-BF-CM) 1.5 Output Determination (SD-BF-OC) 1.6 Sales (SD-SLS) 1.7 Scheduling Agreements for Component Suppliers (SD-SLS-OA) 1.8 Customer Service Processing (SD-SLS-OA) 1.9 Foreign Trade / Customs (SD-FT) 1.10 Billing (SD-BIL) 1.11 Payment Card Processing (SD-BIL-IV) 1.12 Sales Support: Computer-Aided Selling (CAS) 1.13 Electronic Data Interchange / IDoc Interface (SD-EDI) 1.14 Shipping (LE-SHP) 1.15 Transportation (LE-TRA) 1.16 Reports and Analyses (SD-IS-REP)

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1 Sales and Distribution (SD)

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1.1 Basic Functions and Master Data in SD Processing (SD-BF)

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1.2 Pricing and Conditions (SD-BF-PR)

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1.3 Availability Check and Requirements in Sales and Distribution Processing

Availability Check in Sales and Distribution Processing Requirements in Sales and Distribution Processing Availability Check in Shipping Availability Check against Product Allocation Available-to-Promise on the Internet

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1.4 Credit and Risk Management (SD-BF-CM)

Credit management
Purpose Outstanding or uncollectible receivables can spoil the success of the company greatly. Credit Management enables you to minimize the credit risk yourself by specifying a specific credit limit for your customers. Thus you can take the financial pulse of a customer or group of customers, identify early warning signs, and enhance your credit-related decision-making. This is particularly useful if your customers are in financially unstable industries or companies, or if you conduct business with countries that are politically unstable or that employ a restrictive exchange rate policy. Integration If you are using the Accounts Receivable (FI-AR) component to manage your accounting and an external system for sales processing, Credit Management enables you to issue a credit limit for each customer. Every time you post an invoice (created in FI-AR), the system then checks whether the invoice amount exceeds the credit limit. Information functions such as the sales summary or early warning list help you to monitor the customers credit situation. If you are using both the Accounts Receivable (FI-AR) component to manage your accounting and the Sales and Distribution (SD) component for sales processing, you can also use Credit Management to issue credit limits for your customers. You can make settings in Customizing to decide the scope of the check and at what stage in the process (for example, order entry, delivery or goods issue) a credit limit should take place. General information functions are also available for use with credit checks. Features If you are using both the SD and FI-AR components, Credit Management includes the following features: Depending on your credit management needs, you can specify your own automatic credit checks based on a variety of criteria. You can also specify at which critical points in the sales and distribution cycle (for example, order entry, delivery, goods issue) the system carries out these checks. During order processing, the credit representative automatically receives information about a customers critical credit situation. Critical credit situations can also be automatically communicated to credit management personnel through internal electronic mail. Your credit representatives are in a position to review the credit situation of a customer quickly and accurately and, according to your credit policy, decide whether or not to extend credit. You can also work with Credit Management in distributed systems; for example if you were using centralized Financial Accounting and decentralized SD on several sales computers.

You can find information about where to make Customizing settings for Credit and Risk Management in

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Settings for Credit and Risk Management

Risk Management for Receivables

See Risk Management for Receivables in SD for information about managing risks for receivables.

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1.5 Output Determination (SD-BF-OC)

Purpose
The Output Determination component offers output functions for sales, shipping, transportation, and billing to help you manage sales transactions with your customers and within your company. You can create sales activity output (for example, customer telephone calls, mailing campaigns) and group output (for example, freight lists). Your company employees can send and receive output. Output is directly linked to the corresponding sales transaction (for example, the system automatically sends an order confirmation via Electronic Data Interchange (EDI) as soon as the employee creates an order).

Integration
The output determination component is used for output control. Output control is used to exchange information with internal and external partners. Output control includes the following functions, described in the cross-application (CA) - Output Control documentation:

Output Determination Output Processing

Features
The system can automatically propose output for a sales and distribution document. You can change this output in the sales and distribution document. The system uses the condition technique to determine output. For more information on the condition technique, see Conditions and Pricing. See also: For further information on output, refer to the following documentation:

Application Basis-Services

Documentation SAP Internet Mail Gateway SAP Communication: Configuration (BC-SRV)

Cross-Application Components

CA Output Control BC - SAP Business Workflow SD Sales and Distribution: Workflow-Scenarios

For information on Customizing settings and examples, refer to Output Control Customizing in Sales and Distribution (SD) in the CA - Output Control documentation.

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1.6 Sales (SD-SLS)

Purpose
Sales allows you to execute different business transactions based on sales documents defined in the system. Four groups of sales documents are differentiated: Customer inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements

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Complaints, such as free of charge deliveries, credit and debit memo requests and returns

Features
Delivieries and billing documents can be created and processed from the sales document. Some sales documents, such as cash sales and rush orders, automatically trigger the creation of subsequent deliveries and billing documents.

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1.7 Scheduling Agreements for Component Suppliers (SDSLS-OA)

Purpose
In the last decade, component suppliers have had to follow the example of the manufacturers they supply: to survive the changing market, they have had to reduce costs, increase quality, and increase speed of delivery. The push to improve business processes has brought about many innovations in the industry, such as just-in-time processing. SAP has taken these innovations into account to provide component suppliers with the functions they need to better manage their business.

Integration
Electronic Data Interchange (EDI) plays an important role in scheduling agreement processing. There are two important differences between standard scheduling agreements and scheduling agreements for component suppliers. Scheduling agreements with delivery schedules: Contain schedule lines in the delivery schedule, not in the actual scheduling agreement item Can be influenced by the customer who requests the release of a specific quantity of materials on a specific day In standard scheduling agreements, quantities and dates are fixed. Quantites and dates in scheduling agreements with delivery schedules are constantly changed and updated.

Features
We have added the following to standard scheduling agreements in order to accommodate the component supplier's special requirements: Control functions There are many settings for scheduling agreements, giving the component supplier the flexibility needed to create and control documents to meet a company's specific needs. A variety of sales functions for: Engineering changes Packing proposals Open quantities Returns A variety of functions in delivery schedules for: Intermediate documents (IDocs) Checks on incoming delivery schedules Requirements planning and delivery Tolerance levels Analysis Year changes Cumulative quantities Special shipping, billing, and external agent functions Planning delivery schedule processing The planning delivery schedule, a new type of internal schedule, has been designed to help the component supplier realistically plan requirements. Delivery order processing The delivery order is based on the pick-up sheet used in the Material Information System (MAIS).

Constraints
Scheduling agreements with delivery schedules are not supported in assembly processing or third-party order processing. Also, copying control for sales documents does not support copying data from a preceding document into scheduling agreements with delivery schedules. You can, however, copy data into other documents from scheduling agreements with delivery schedules using the Create with reference to function. !--a11y-->

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1.8 Customer Service Processing (SD-SLS-OA)

Purpose
Customer Service enables you to plan and manage a wide range of service scenarios. It includes functions for processing: Service notifications Warranties Service orders Service contracts Service quotations Repair orders Customer Service (CS) draws on functionality from different SAP application components, in particular Plant Maintenance (PM) and Sales and Distribution (SD). For example, CS involves the planning and processing of external services, such as contracts for the maintenance and repair of equipment that a customer has either bought or rented. Maintenance planning and servicing is managed in PM; in SD you can create and maintain the relevant service contracts. Contract-related charges that are incurred in PM are passed on in the form of requests for billing in SD. In Returns and Repairs Processing, you will find a diagram showing the typical events in the day-to-day world of customer service. It also illustrates the interplay within Customer Service of SD and PM functions. In the following sections, you will find information on the Customer Service functions in Sales and Distribution. For information on the Customer Service functions in Plant Maintenance see Customer Service (CS) under Logistics CS Customer Service.

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1.9 Foreign Trade / Customs (SD-FT)

Purpose
As markets become increasingly more global and business structures more complex, the need for accuracy in handling the foreign trade needs of a business is gaining rapidly in importance. SAPs R/3 Foreign Trade / Customs application (FT) provides the tools you need to compete effectively in todays fast-paced market. It is designed to help you meet the rapidly changing foreign trade requirements of your business. SAPs R/3 Foreign Trade application enables you to: Manage import and export processes, integrating them efficiently into the supply chain Automatically identify licensing requirements for importing and exporting goods based on current regulations Simplify reporting with automatic procedures for creating, printing and submitting declarations Determine which of your products qualify for preference handling Provide an active interface for sending or retrieving data via internationally available EDI systems and other electronic media Update or change data in all relevant foreign trade documents at any time prior to the final goods issue. Even after you have posted the goods issue, you can still change data in the invoice.

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Integration
The Foreign Trade/Customs (FT) application component is integrated with Materials Management for handling imports and with Sales and Distribution for exports. In the area of documentary payments, it is also integrated closely with the Financial Accounting application. The following graphic illustrates where FT data is integrated into the R/3 environment:

Features
What can SAP's Foreign Trade / Customs system do? The capabilities of the SAP Foreign Trade application are illustrated and described in each of the following component descriptions:

Basic Functions Communication/Printing Legal Control Periodic Declarations Preference Documentary Payments Import Processing See also Benefits of Using SAP Foreign Trade/Customs The Situation Within Your Own Country !--a11y-->

1.10 Billing (SD-BIL)

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1.11 Payment Card Processing (SD-BIL-IV)

Purpose
Payment cards frequently replace cash as a means of payment, becoming indispensable to customers and valuable tools for businesses. The importance of payment cards requires their integration into modern business processes. Payment card processing in the R/3 System offers you a wide range of functions in Sales and Distribution, Retail point of sale, Financial Accounting, and Internet commerce. It contains the basic tools you need to handle payment cards in a variety of business environments.

Integration
Sales and Distribution (SD) Install the SD component to process payment card data in master records, sales orders, and billing documents. With this component, you can: Integrate payment card activities into the sales, delivery, and billing processes Exchange information with clearing houses for authorization Manage complicated sales scenarios involving payment cards Handle procurement cards

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Payment cards play an important role in

Risk Management. As of Release 4.0, you can use payment cards to secure payment guarantee for your

receivables.
To configure payment card functions, choose Billing Payment cards in Customizing for Sales and Distribution. Financial Accounting (FI) Install the FI component to carry out settlement and payment functions to complete your activities in Sales and Distribution, and process payment card data in accounting documents. With this component, you can: Set up an open item-managed, general ledger account for each clearing house Record processing fees charged by the clearing house for its services Manage information sent back by clearing houses to accept or reject card transactions Carry out bill-back processing when a customer disputes a transaction Retail Install the Retail component to process payment card transactions from point of sales (POS) systems. With this component, you can: Carry out authorization from external systems Import data into the R/3 System from external systems Process POS data in billing and accounting documents Internet Application Component (IAC) Install the IAC component to do business on the Internet. With this component, you can: Automate order entry Handle electronic payment Human Resources (HR) Install the HR component to process walking cards. This is not a new function, however. Walking card processing has been a part of the standard system

in Travel Expenses since Release 3.0D.

Constraints
Although banks and purchasers are included in the payment card concept, this first phase of payment card processing has been designed specifically for merchants. !--a11y-->

1.12 Sales Support: Computer-Aided Selling (CAS)

Purpose
The Sales Support component provides a wide range of functions for opportunity management. It helps your sales and marketing department to support your existing customers and, at the same time, to develop new business. Within the Sales Support environment, all sales personnel in the field and in the office can share valuable information about customers, sales prospects, competitors and their products, and contact people. The Sales Support component is: a source of information for all areas of Sales and Distribution a tool for lead generation, lead qualification, and lead tracking

Figure 1

Features
In the Sales Support environment, you can create direct mailings to develop new business as well as to consolidate the existing customer base. Using sales information you already have stored in the system, you can create address lists of customers and sales prospects you wish to target with a direct mailing

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campaign. Background information on customers, sales prospects, and competitors, as well as on products and sales materials, is stored as master data. More specific information, such as previous contact with a customer, is stored in documents known as sales activities.

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1.13 Electronic Data Interchange / IDoc Interface (SD-EDI)

Purpose
The Electronic Data Interchange (EDI) component in Sales and Distribution consists of an Intermediate Document (IDoc) interface. You can use this interface to send messages (outbound processing) such as an order confirmation through Electronic Data Interchange (EDI) receive messages (inbound processing) such as a sales order through EDI

Integration
Many large companies (such as automotive suppliers) require their vendors to use EDI. For information on EDI in the components supplying industry, refer to Intermediate Documents for Scheduling Agreements. In Sales and Distribution, output determination is initiated during outbound processing. For information on output determination in Sales and Distribution, see Output Determination (SD). For information on output (or message) control in general, see CA - Message Control in Cross-Application Components .

Features
During outbound processing in Sales and Distribution, the system determines output using the output determination component. The system converts the data into an IDoc and issues it using the IDoc interface. During inbound processing, the sender converts the data into IDocs and passes it on to the IDoc interface. These IDocs are stored in the SAP System. In a second step, the system creates the document data.

SAP does not provide EDI converters. For more information on the IDoc interface in general, see IDoc-Interface / Electronic Data Interchange in the cross-application documentation The IDoc Interface (BC-SRV-EDI) . !--a11y-->

1.14 Shipping (LE-SHP)

Implementation Options
Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles. In shipping processing, all delivery procedure decisions can be made at the start of the process by Taking into account general business agreements with your customer Recording special material requests Defining shipping conditions in the sales order The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.

Integration
The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.

Range of Functions
The shipping module supports the following functions, which include but are not limited to: Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance) Creating and processing outbound deliveries Planning and monitoring of worklists for shipping activities Monitoring material availability and processing outstanding orders Monitoring the warehouse's capacity situation Picking (with optional link to the Warehouse Management system)

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Packing deliveries Information support for transportation planning Support of foreign trade requirements Printing and transmitting shipping documents Processing goods issue Controlling using overviews of Deliveries currently in process Activities that still are to be carried out Possible bottlenecks

A list of deliveries posted as goods issue in the shipping department could be used to form a worklist for the billing department.

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1.15 Transportation (LE-TRA)

Purpose
Transportation is an essential element in the logistics chain. It affects both incoming and outgoing goods. Effective transportation planning and processing ensure that shipments are dispatched without delay and arrive on schedule. Transportation costs play an essential role in the calculation of the price of a product. It is important to keep these transportation costs to a minimum so that the price of a product remains competitive. Efficient transportation planning and processing helps to keep these costs down.

Integration
As illustrated in the following graphic, you can use the SAP transportation functions to plan and process: Incoming shipments in Materials Management based on purchase orders and shipping notifications Outbound shipments in Sales and Distribution based on sales orders and deliveries The graphic below illustrates this process:

Transportation planning and processing is based on the shipment document. This document facilitates the flow of information from the shipper to the customer and to any service agents who are involved in the business transaction.

Features
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The transportation component includes basic transportation processing functions: Transportation planning and shipment completion Shipment costs calculation Shipment costs settlement Shipment costs calculation for individual customers Billing of customer freight Service agent selection Management of means of transport and utilities Follow-up and supervision of shipments Management of shipment costs These transportation functions can handle planning and processing for both inbound and outbound shipments. You can control and monitor the entire transportation process from the planning stage to goods issue at your shipping point (for outbound shipments) or vendor location (for inbound shipments), through to goods receipt at the customer location or your plant. Other available functions include: shipment costs calculation and settlement with the service agent, transfer to accounting, credit memo creation and invoice verification.

This documentation describes procedures in outbound shipment processing. Unless specifically stated otherwise, the information here also applies to inbound shipment processing. Differences between the two will be pointed out where necessary. For information on creating and processing inbound deliveries, see the Confirmations section of the R/3 Library documentation for Purchasing (MM-PUR).

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1.16 Reports and Analyses (SD-IS-REP)

Purpose
The SAP R/3 System offers you a wide range of information and analysis tools for sales and distribution. These provide you with a quick overview of your current business situation.

You want to determine how many orders customer XY issued in the last quarter. To see this information, you can execute the report "List orders". This gives you a list of orders and also contains information on the items, order value etc. You can set the scope of this list yourself.

Integration
Some reports are created using the Sales Information System .This is the only component, which enables you to collect, aggregate and evaluate data from sales and distribution processing. The sales information system is part of the Logistics Informatiom System.

Features
The following evaluation functions are available: Lists and evaluations You can create lists of documents that meet certain criteria such as all the billing documents for a particular payer or all orders for a certain time period. The system is also able to inform you about credit holds (documents blocked for credit reasons) or orders that have not yet been processed. Work lists You can create work lists for different areas, for example, for deliveries that have not yet been billed. You can go directly from the list to process the documents. Functional Analyses This enables you to display the steps that the system uses to determine prices or accounts. Information on individual sales documents You can display information about a sales document, such as the document flow or document status.

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