SD Blue Print Document - Sample

MODEL Project 2014 (XXX)
Business Blueprint
Sales and Distribution
G.V.SHIVAKKUMAR
Venkatesansivakumar@yahoo.co.in

Please use my link to download the SAP articles:-
http://gvshivakkumar.blogspot.in/?view=flipcard
http://www.sapfunctional.com/WM/Configuration/Index.htm
http://www.sapfunctional.com/WM/WMQ1.htm
http://www.sapfunctional.com/MM/MMQ1.htm
http://www.mediafire.com/view/hdfm84rmkq7h495/SAP_INTEGRATION_BETWEEN_MM+SD+PP.doc
x
http://www.mediafire.com/view/29trlg8qtn8z0nj/SAP_FI-MM_and_FI-SD_Integration.docx
http://www.mediafire.com/view/cxajoijh3j5s6es/Materials_Management_Step_by_Step_Configuration.doc
x

G.V.SHIVAKKUMAR VENKATESANSIVAKUMAR@YAHOO.CO.IN
Document Information

Document Owner G.V.Shivakkumar

Document Distribution

Name Organization Distribution Date

XXXX XXX XX-XX-XXXX

Document History
All revisions made to this document are listed here in chronological order.

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G.V.Shivakkumar

Table of Contents
Contents
INTRODUCTION ................................................................................................................................. 1
1.1 OBJECTIVE OF THIS REPORT .............................................................................................................. 1
1.2 STRUCTURE OF THE REPORT ............................................................................................................. 1
1.3 ORGANIZATION OVERVIEW .............................................................................................................. 2
1.3.1 ABOUT XXX ..........................................................................................................................................2
1.4 OVERVIEW OF SALES AND DISTRIBUTION AT XXX .................................................................................. 2
ORGANISATIONAL ELEMENTS IN SD ................................................................................................... 3
2.1 SALES ORGANIZATION .................................................................................................................... 3
2.2 DISTRIBUTION CHANNELS ................................................................................................................ 4
2.3 SALES DIVISION ............................................................................................................................. 4
2.4 PLANTS ....................................................................................................................................... 6
2.4.1 RELATIONSHIP OF PLANTS AND OTHER ORGANIZATIONAL UNITS ....................................................................6
2.5 SALES AREA ................................................................................................................................. 7
2.6 SALES OFFICE................................................................................................................................ 8
2.7 SALES GROUP ............................................................................................................................... 9
2.8 SALES DISTRICT ............................................................................................................................. 9
2.9 SHIPPING POINTS ........................................................................................................................ 10
2.10 STORAGE LOCATION ................................................................................................................... 10
2.11 GAPS/SOLUTIONS IDENTIFIED ....................................................................................................... 11
MASTER DATA IN SALES ................................................................................................................... 11
3.1 OVERVIEW ................................................................................................................................. 11
3.1.1 CUSTOMER MASTER ............................................................................................................................ 11
3.1.1.1 Customer Account Groups .......................................................................................................... 13
3.1.1.2 Customer Groups ........................................................................................................................ 14
3.1.1.3 Sales Personnel for Customers .................................................................................................... 15
3.1.2 FINISHED MATERIAL MASTER ................................................................................................................ 16
3.1.3 PRICES .............................................................................................................................................. 16
3.1.4 BBBBHES .......................................................................................................................................... 16
3.1.5 ASSUMPTIONS (IF ANY) ........................................................................................................................ 16
3.1.6 INTEGRATION ..................................................................................................................................... 17
SALES PLANNING ............................................................................................................................. 17
SALES PROCESS ................................................................................................................................ 18
6.1 INSTITUTIONAL SALES (CREDIT SALES) ............................................................................................... 18
6.1.1 PROCESS FLOW ................................................................................................................................... 18
6.1.1.1 Inquiries ....................................................................................................................................... 20
6.1.1.2 Quotations................................................................................................................................... 20
6.1.1.3 Sales Order Creation ................................................................................................................... 21
6.1.1.3.1 Availability check ..................................................................................................................... 22
6.1.1.3.2 Pricing ...................................................................................................................................... 22
6.1.1.3.3 Credit Check ............................................................................................................................. 23
6.1.1.4 Delivery Processing ..................................................................................................................... 23
6.1.1.5 Billing ........................................................................................................................................... 25
6.1.2 EXCEPTIONS AND VARIATIONS ............................................................................................................... 26
6.1.3 CHANGES TO THE EXISTING ORGANIZATION .............................................................................................. 26
6.1.4 ASSUMPTIONS .................................................................................................................................... 26
6.1.5 DEPENDENCIES ................................................................................................................................... 26
6.1.6 GAPS /ISSUES IDENTIFIED AND SOLUTIONS .............................................................................................. 26
6.1.7 AUTHORISATION REQUIREMENTS ........................................................................................................... 26
6.1.8 FORMS AND REPORTS REQUIRED ............................................................................................................ 26
6.1.9 INTEGRATION WITH OTHER MODULES ..................................................................................................... 27
6.1.10 INTERFACES ..................................................................................................................................... 27
6.1.11 DATA CONVERSION ........................................................................................................................... 27
6.2 SHOW ROOM SALES (CASH SALES) .................................................................................................. 27
6.2.1 PROCESS FLOW ................................................................................................................................... 27
6.2.4 ASSUMPTIONS .................................................................................................................................... 29
6.2.5 DEPENDENCIES ................................................................................................................................... 29
6.3 MRO SALES ............................................................................................................................... 30
6.3.1 PROCESS FLOW ................................................................................................................................... 30
6.3.1.1 Inquiries ....................................................................................................................................... 31
6.3.1.2 Quotations................................................................................................................................... 32
6.3.1.3 Contracts ..................................................................................................................................... 32
6.3.1.4 Sales order ................................................................................................................................... 33
6.3.1.5 Delivery ....................................................................................................................................... 33
6.3.1.6 Invoice ......................................................................................................................................... 33
6.3.4 ASSUMPTIONS .................................................................................................................................... 33
6.3.5 DEPENDENCIES ................................................................................................................................... 33
6.3.10 DATA CONVERSION ........................................................................................................................... 34
6.4 SYSTEM SALES ............................................................................................................................ 34
6.4.1 PROCESS FLOW ................................................................................................................................... 34
6.5 PROJECT SALES ........................................................................................................................... 34
6.5.1 PROCESS FLOW ................................................................................................................................... 34
6.5.1.1 Inquiry ......................................................................................................................................... 35
6.5.1.2 Quotation .................................................................................................................................... 36
6.5.1.3 Sales Order .................................................................................................................................. 36
6.5.1.4 Activity Confirmation and Billing ................................................................................................. 38
6.5.4 ASSUMPTIONS .................................................................................................................................... 39
6.5.5 DEPENDENCIES ................................................................................................................................... 39
6.5.10 DATA CONVERSION ........................................................................................................................... 40
6.6 ASSEMBLE TO ORDER SALES (CCC) .................................................................................................. 40
6.6.1 PROCESS FLOW ................................................................................................................................... 40
6.6.1.1 Inquiry ......................................................................................................................................... 40
6.6.1.2 Quotation .................................................................................................................................... 40
6.6.1.3 Sales Order .................................................................................................................................. 40
6.6.1.3.1 Sales Order Costing .................................................................................................................. 41
6.6.1.4 Delivery ....................................................................................................................................... 41
6.6.1.5 Invoice ......................................................................................................................................... 41
6.6.4 ASSUMPTIONS .................................................................................................................................... 41
6.6.9 DATA CONVERSION .............................................................................................................................. 42
6.7 CONSIGNMENT SALES ................................................................................................................... 42
6.7.1 PROCESS FLOW ................................................................................................................................... 42
6.7.1.1 Consignment fill-up ..................................................................................................................... 44
6.7.1.2 Consignment issue ...................................................................................................................... 44
6.7.1.3 Consignment pick-up .................................................................................................................. 45
6.7.1.4 Consignment return .................................................................................................................... 45
6.7.4 ASSUMPTIONS .................................................................................................................................... 46
6.7.5 DEPENDENCIES ................................................................................................................................... 46
6.7.10 DATA CONVERSION ........................................................................................................................... 46
6.8 THIRD PARTY SALE (DROP SHIPMENT) .............................................................................................. 47
6.8.1 PROCESS FLOW ................................................................................................................................... 47
6.8.1.1 Sales order ................................................................................................................................... 47
6.8.1.2 Billing ........................................................................................................................................... 48
6.9 SALES RETURN ............................................................................................................................ 48
6.9.1 PROCESS FLOW ................................................................................................................................... 48
6.10 SALES PROMOTIONS ................................................................................................................... 49
6.10.1 PROCESS FLOW ................................................................................................................................ 49
6.10.1.1 Issue of free samples to the customers .................................................................................... 49
6.10.1.2 Value/percentage discount ....................................................................................................... 50
6.10.1.3 Rebates ..................................................................................................................................... 51
6.10.2 EXCEPTIONS AND VARIATIONS ............................................................................................................. 53
6.10.3 CHANGES TO THE EXISTING ORGANIZATION ........................................................................................... 53
6.10.4 ASSUMPTIONS .................................................................................................................................. 53
6.10.5 DEPENDENCIES ................................................................................................................................. 53
6.10.6 GAPS /ISSUES IDENTIFIED AND SOLUTIONS ............................................................................................ 53
6.10.7 AUTHORISATION REQUIREMENTS ........................................................................................................ 53
6.10.8 FORMS AND REPORTS REQUIRED .......................................................................................................... 53
6.10.9 INTEGRATION WITH OTHER MODULES ................................................................................................... 54
6.10.10 DATA CONVERSION ......................................................................................................................... 54
6.11 DEBIT AND CREDIT NOTES ........................................................................................................... 54
6.11.1 PROCESS FLOW ................................................................................................................................ 54
6.12 SCRAP SALES ............................................................................................................................ 54
6.12.1 PROCESS FLOW ................................................................................................................................ 54
6.13 VAN SALES ............................................................................................................................... 55
6.13.1 PROCESS FLOW ................................................................................................................................ 55
6.13.2 EXCEPTIONS AND VARIATIONS ............................................................................................................. 55
6.13.3 CHANGES TO THE EXISTING ORGANIZATION ........................................................................................... 55
6.13.4 ASSUMPTIONS .................................................................................................................................. 56
6.13.5 DEPENDENCIES ................................................................................................................................. 56
6.13.7 AUTHORISATION REQUIREMENTS ........................................................................................................ 56
6.13.8 FORMS AND REPORTS REQUIRED .......................................................................................................... 56
SALES INFORMATION SYSTEM .......................................................................................................... 56


SD Blue Print Document_Sample.
SD MODULE_ SAMPLE BLUE PRINT PAGE 1

Introduction
The Purpose of the Business Blueprint, which is the main deliverable of Business Blueprint
Phase, is to serve as conceptual master plan for Sales and Distribution module for A. Model
Group (XXX).
This Blueprint has been developed by documenting all input gathered from the core team by
scheduling meetings and workshops. This document shows the business requirements in detail,
and serves as the basis for organization, configuration and development activities.
1.1 Objective of this Report

During the course of this phase of the assignment, ABC consultants held business process
workshop for the Core team members (across businesses) to discuss and deliberate the business
requirements for respective functional areas. The objective of the workshops was to discuss the
following aspects of each business process and to define the requirements of XXX in detail:
Business Process
Expectations/ Improvements
Reporting/Information requirements
During the workshops, the core team members were acquainted with the capabilities and
functionality of the SAP solution.
Based on the discussions during the Business Process Workshop, various business scenarios
have been documented which need to be addressed by the system. The purpose of this report is
to confirm the understanding of these business scenarios, which would form the basis for
system specifications and to also list requirements which cannot be addressed by the system.
This document forms the basis for all subsequent activities to be conducted during the project.
1.2 Structure of the Report
The report initially gives an overview of the Sales and Distribution Module purview. This would
essentially help in defining the boundaries of the module and also in identifying the activities to
be performed within Sales and Distribution Module in SAP. Subsequently, the report discusses in
detail, the proposed coverage of SAP at XXX, in terms of organizational entities and business


processes. Each business process has been described with all the variations. The authorization
requirements would be identified and configured during the configuration phase.

1.3 Organization Overview
1.3.1 About XXX
1.4 Overview of Sales and Distribution at XXX
XXX incorporates a group of companies engaged in trading, contracting and projects, services
and turnkey solution provider in water and energy applications. All XXX companies sales various
products and services through out KSA from their branches spread across KSA, India etc. As per
the CMDC rules, there are no taxes on sales/purchases applicable to the group companies. All
XXX companies are currently using JD Edwards (an ERP System). XXX has implemented the Sales,
the Inventory and the General ledger modules of JD Edwards.
The Sales and Distribution (SD) application component of SAP addresses the Business
requirements that must be met by the Sales Department of an organization. The Sales and
Distribution module deals with Sales of materials and services and associated delivery and billing
processing.

SD Module communicates with other modules in the SAP System to ensure a constant flow of
information. For example, it works side by side with the following modules like Financial
Accounting (FI), Controlling (CO), Materials Management (MM), and Production Planning.
During the Sales order creation, the availability check of material happens which is resultant of
checking the available stock levels and when the sales order is saved the sales requirements are
passed onto Production (PP).
During delivering processing, when the goods actually leave the warehouse, the function PGI
would reduce the stocks /Stock values, thereby ensuring integration with MM/FI.
During billing, once the billing document is released to accounting, the A/R is updated, providing
a seamless flow of information into FI module.



Organisational Elements in SD
2.1 Sales Organization
A sales organization is the central entity in Sales & Distribution and is responsible for the sale
and distribution of goods and services. It represents the selling unit as a legal entity. It is
responsible for product guarantees and other rights to rCCCurse, for example. Each business
transaction is processed within a sales organization.
A sales organization has its own specific data related to:
Customer Master
Pricing
Sales views of the material master
Each sales organization is assigned exactly one company code. This way, the system derives the
company code for each accounting transaction originating from Sales. BBB Sales organization
shall be assigned to BBB company code, AAA sales organization shall be assigned to AAA
company code and CCC sales organization shall be assigned to CCC company code. The sales
organization must be specified in all sales documents. Following 3 sales organizations will be
defined in the SAP system:

Sales Organization Name SAP Code
XXX Trading Corporation 0101
XXX Electric Corporation 0201
Electronics & Electrical Industrial Corp 0301

All major business units in XXX are independent legal entities and being mapped as separate
company codes. Each company code must have its own sales organization.


2.2 Distribution Channels
It is the channel through which saleable materials or services are sold to the customers. The
distribution channel can also be viewed as segmentation of an organizations customer base,
important from an analytical and control standpoint. A distribution channel is assigned to
multiple Sales Organizations.
It is proposed that XXX has six Distribution Channels, which shall cover over all distribution of
finished goods to the customer. Since there are six distinct segments through which the
products are sold or dispBBBhed:

Distribution Channel SAP Code
Institutional Sales 10
Showroom Sales 20
MRO Sales 30
Service Centre Sales 40
Van Sales 50
Internet Sales 60

2.3 Sales Division
This entity normally groups together saleable materials and services for the purpose of
responsibility and analysis. The material sales division would be clearly demarcated while
creating the material master for the finished products.
The division is used for control and analysis purpose and can be assigned to multiple sales
organizations. The divisions will be assigned to the Sales Organizations engaged in relevant
business. XXX product lines shall be defined as divisions.



The following Divisions shall be defined for ZZZ:

Division SAP Code
Pumps 11
Motors and alternators 12
Engines 13
Gen sets (power systems) 14
Valves 15
Membrane and housing 16
Pressure vessel &Tanks 17
Storage and materials handling 18
Heavy equipment and spares 19
Automation and control Instrumentation 20
Water treatment plant 21
Waste water treatment plant 22
Chemical 23
Pipe and Fittings 24
Sprinklers 25
Drip 26
Stand alone controller 27
Central Controller??? (same as automation) 28
Fog 29
Machines 30
Landscape item 31
Green house 32
Cable 33
Accessories 34
Wiring accessories 35
Power distribution Component protection 36
Lightings Lamps 37
Enclosures 38
Networking 39
Bus duct systems 40
Control Components 41
BMS 42
LV control panel 43
LV- Power distribution panel 44
MV-Control Panel 45


MV- Power distribution panel 46
MRO Material 47
Service 48
Common Division 00

One common division (00) shall be defined. The common division will reduce the master data
maintenance efforts, in that, the customer needs to be maintained only for the common
division.

2.4 Plants
This is an entity within Logistics, serving to subdivide an enterprise according to production,
procurement, maintenance and materials planning. It is a place where material is produced,
stocked, valuated and sold.
A Plant has its own material master data. You can maintain data at Plant level for the following
views on a material master rCCCrd in particular:
MRP
Purchasing
Storage
Work scheduling
Production resources/tools
Forecasting, Quality management
Sales
Accounting and Costing
The Plant plays an important role in Material Valuation, Inventory Management, MRP,
Production, Costing and Plant Maintenance.
2.4.1 Relationship of Plants and other Organizational Units
A plant is assigned to a single company code. A company code can have several Plants.


Several storage locations in which material stocks (only quantities) are managed can belong to a
Plant.
A plant can be assigned to several combinations of sales organization and distribution channel.
This is an important link between SD and MM functionalities, by which certain sales organization
distribution channels are allowed to source material from certain plants.
The following Plants have been identified for XXX:

Plant
Code Description
Related
Company
Code
101 Delhi Head office BBB
102 Mumbai central BBB
103 Rail street calcutta BBB
104 chennai BBB
110 Guragon BBB
111 Noida BBB
120 cochin BBB
121 Dehradan BBB
130 bangalore BBB
131 Trivandrum BBB
140 Goa BBB
141 Agra BBB
201 AAA Head office AAA
202 AAA basement AAA
203 Chennai Central AAA
210 jammu AAA
211 kashmir AAA
221 Mysore AAA
301 Chennai factory CCC
320 Kolkata factory CCC

2.5 Sales Area
All valid combinations of sales organization / distribution channel / division are termed as Sales
Areas. Every sales transaction always takes place in a Sales Area. Each customer, with whom
business is transacted, must be maintained in that specific sales area.


2.6 Sales Office
The Sales Office is an entity responsible for Sales in a particular geographical area. Addresses
can be maintained for Sales Offices. Sales Offices are generally used to map major geographical
entities, by which targets are set and performance measured. XXX existing branch offices shall
be mapped as sales offices.

Following sales office shall be defined in SAP system:
Sales Office Code Description
0101 BBB Bangalore
0102 BBB Rail
0103 BBB jammu
0104 BBB Bhubaneswar
0105 BBB Agra
0106 BBB Washi
0107 BBB Ahemadabad
0108 BBB Telungana
0109 BBB calicut
0110 BBB Hyderabad
0201 AAA Secundrabad
0202 AAA Ghuwati
0203 AAA Coimbatore
0204 AAA madurai
0205 AAA Vizag
0206 AAA Jubli
0207 AAA Durgapur


Sales Office Code Description
0208 AAA Mandhiya
0209 AAA Kumbakonnam
0210 AAA Ranchi
0301 CCC lucknow
0302 CCC Patna

2.7 Sales Group
The Sales Group identifies a sales person or a group of sales persons responsible for Sales in a
particular Sales Office. This entity will be reserved for the future. However, to track salesperson-
wise analysis, sales employee partner function will be used with values from the employee
master.
2.8 Sales District
Sales districts are freely definable geographical entities and are used for analysis. In ZZZ, the
cities shall be defined as sales district for analysis purposes. Saudi Arabia existing regions shall
be defined as sales district in SAP. Following shall be the codification logic of Sales District for
XXX:



Sales District SAP Code
Central Province 001
Eastern Province 002
Western Province 003
Northern Province 004
Southern Province 005
Pondicherry 006
Mahi 007

2.9 Shipping Points
It is an organizational unit facilitating all shipping activities. Each outbound delivery is processed
by a shipping point. A shipping point can be assigned to one or more plants. A plant can also
have its material shipped from multiple shipping points.
Since every plant at XXX processes its own shipping, there shall be as many shipping points as
there are plants defined in the system with a one-to-one relationship between them. The coding
of the shipping points shall be same as that of the plants.
2.10 Storage Location
Storage Location is an organizational unit facilitating differentiation between the various stocks
of a material within a Plant in terms of physical location.
A storage location has the following attributes:
There may be one or more storage locations within a Plant.
Stocks are managed only on a quantity basis and not on a value basis at storage
location level.
Physical inventories are carried out at storage location level.
Storage locations are always created for a Plant
Refer MM Blueprint for details.


2.11 Gaps/Solutions identified

Master Data in Sales
3.1 Overview
Master data is the data about customers, products and prices that remains constant over a
period of time. This data is carefully maintained by a responsible person in the organization and
forms the basis of all transactions.
The Sales related masters are
Customers
Materials
BBBBhes
Prices
3.1.1 Customer Master
The system would regard any business partner or consumer in the Sales Cycle as a Customer.
Customer master is the central entity for Customer Order Management Cycle in the system.
Customer in SAP can denote different kinds of customers like dealers, agents, direct end
consumer (who would normally buy finished goods from XXX and would therefore be called as
Customers, in conventional terms also). The extent of information captured for each type of
customer would vary as per requirements.
In SAP, a customer would be identified with the help of a unique customer code and captures all
information about the customer. The customer master would capture information at various
levels like name and address, payment terms, banking details, accounting data (such as the GL
account to be utilized for the customers transactions), the sales office responsible for the
customer, terms of delivery, customer classification parameters etc. It is recommended that the
customer master be administered centrally. This would help in having a central control in
creation of new customers for the whole company. The creation of duplicate customers in the
system would be eliminated.


All the business related information on customers is stored in the customer master. The
customer has the following views:
General Data: Data related to name, address, telephones, contact persons, industry
details, etc., which remain constant for a customer across organisation elements in
SAP. A Blueprint reviewer is requested to validate the correctness of the list.
Transportation field in the General data tab shall be used to define customer Cities.
City SAP Code
Delhi 0001
Chennai 0002
Bangalore 0003
Calcutta 0004
Bhubaneswar 0005
Cochin 0006
Hyderabad 0008
Ahmadabad 0008
securandrabad 0009
Trichy 0010
mumbai 0011
Mangalore 0012
Dehradan 0013
Vizag 0014
Ghuwati 0015



Accounting Data: Data used in FI, such as the reconciliation account number, sort
key, etc., which remains constant for a company code. Ownership of this data is
mainly with the Accounting function.
Sales Area Data: Data used in SD, such as the indicator for pricing procedure, the
sales office and the sales groups servicing the customer, account assignment group,
etc. For each customer, this data is to be maintained separately for each sales area.
3.1.1.1 Customer Account Groups
Account groups control the following functions of the customer master:
Number Range
Field Selection- Fields present for data entry in the customer master
The following accounting groups shall be configured:
One account group for all normal customers.
One account group for group companies.
One account group for one time Customers.
The numbering of the customers shall be internal. The actual number intervals shall be decided
during configuration phase. The number range of each account group shall be exclusive.
Customer Class in the Customer Master General Data shall be used to represent highest level of
customer segmentation. Two Customer class shall be defined:
Government
Private
Industry in customer master general data shall be used to represent SCCCnd Level classification
to represent the Industry classification of the customer. Following Industry codes shall be
defined:

Industry Codes
Manufacturing 100
End User 200
Contracting 300
Trading 400


Farming 500
Services 600
Utilities 700

Contact Person for XXX customers shall be maintained at the client level. If required XXX shall
maintain multiple contacts person detail in the customer master. In case of company specific
contact person under XXX for a customer, XXX shall suffix the name of the company after a given
contact person details in the customer master.
XXX shall block customers for Sales Orders, shipping or billing in case of circumstances like
cheque bouncing, abnormal payment history etc. It is possible to block customers specifically for
a company code and a sales area. Customers can be blocked for all the sales areas and company
codes.
3.1.1.2 Customer Groups
Customer Group identifies a particular group of customers for the purpose of pricing or
generating statistics. Following customer groups in Customer Master Sales Area data shall be
defined in SAP system. Customer Groups shall be maintained for sales area of the customer.

Customer Group Codes
Water & waste water treatment 101
OEM 102
Panel builder 103
Fire fighting 104
HVAC 105
Elevator 106
Mechanical industries 107
Power generation 108
Chemical and petro chemical 201
Cable and wire cement 202
Steel 203
Food and beverage 204
Plastic, paper and packaging 205
Oil and gas 206
Landscape and irrigation 301
Road and infrastructure 302
General contractor 303


Electromechanical contractor 304
Operation and maintenance contractor 305
Marine contractor 306
Water and waste water infrastructure 307
E.P.C. contractor 308
Dealers 401
Retail Hypermarkets 402
Large 501
Crop- Produce 502
Crop-Farmers 503
Cooperatives 504
Poultry 506
Live stock 507
Aqua culture 508
Health 601
Education 602
Engineering and consultancy 603
Security 604
Rental leasing 605
Banking 606
Insurance 607
IT 608
Media 609
Power 701
Water 702
Waste Water 703
TelCCCm 704
Heating and cooling 705
Gas 706

3.1.1.3 Sales Personnel for Customers
XXX allocates each customer to its sales employee and tracks employee wise customer sales.
SAPs partner functions shall be used to track sales employee per customers in SAP.
SAPs partner functions shall be maintained for applicable sales areas of the customer. Each
sales personnel shall be created as sales employees in SAP in Human Resource Module of SAP. It
shall have unique personnel no and the same no shall be identified under a partner function of
customer master in SAP. For each customer a default sales employees shall be maintained at
customer master and can be overwritten at sales order.


3.1.2 Finished Material Master
In SAP, different kinds of material are maintained under more than one material type, for
example: Finished Goods, Semi Finished, etc. The material type controls the attributes of the
materials such as
Number Range
Fields that are mandatory or optional
Views that can be maintained
Finished Goods Master would capture all the relevant details about any product and would have
a unique code assigned to it. Common materials will be used across plants and company codes.
A unique physical material will have a unique number and no duplications will be maintained.
The users shall maintain Sales Views for the finished goods for the sales organisation and
distribution channel combination, where the product belongs.
XXXs core team shall identify all common materials used across various business locations, and
they should be created as a single/unique material master code in SAP
3.1.3 Prices
It is expected that XXX will maintain the price master for the Finished Products centrally. This
would help in having a central control in maintenance of prices for the whole company. These
prices will be used as standard selling price when a sales order or a quotation is entered. This
feature would be used mainly for the business with public price list.
3.1.4 BBBBhes
Materials like Membrane and Reisins, shall be bBBBh managed. An important characteristic of
the bBBBh is the expiration date, which will be used sort bBBBhes according to the expiry during
automatic bBBBh determination in deliveries.
3.1.5 Assumptions (if any)
Customer master and price master should be maintained centrally at the Company level through
master maintenance cell for better control and monitoring and ensuring there is no duplication
of master data.


3.1.6 Integration
MM Module

Sales Planning
The sales planning and monitoring hierarchy defined in SAP would primarily be used to capture
budgeted quantities and values for sales at different levels in the sales hierarchy and
comparison of the same with actual sales.
The plan will be defined for a time period like a year with monthly break up. This data can be
compared with the actual sales, which are updated from the transactions online. The following
planning hierarchy shall be defined for XXX to perform sales planning.

Planning at any of the above given level can be executed by XXX. SAPs historical data can be
used to forecast invoiced quantity. Various statistical methods given by SAP can be used to
forecast invoiced quantity.
XXX have indicated that the minimum sales planning expectation from SAP is Company / Branch
/ Sales Employee / Product group. Accordingly the planning hierarchy has been decided at
present. The planning hierarchy mentioned here is indicative and may be enhanced as required
during Realization.
Sales Organization
Distribution Channel
Division
Sales Office
Sales employees
Material Group
Materials


Planning hierarchy shall be used only for sales planning, the same shall never be used to transfer
data to demand management and MRP.
Sales Process

6.1 Institutional sales (Credit Sales)

6.1.1 Process flow
The following graphic shows how Institutional Sale is processed in the system:





6.1.1.1 Inquiries
You can represent pre-sales business processes in the system using the functions for inquiries
and quotations. Customer inquiries and quotations to the customer can be entered and
monitored.
Inquiries shall be the start point of the sales cycle and quotations should be created after
entering inquiries in the system. However system shall have flexibility for entering quotations
directly without having entered the inquiry.
Inquiries let you enter and store all the important, sales-related information you use during
sales order processing.
You can maintain a validity date in sales queries by which time the query should have been
answered. The documents can then be monitored and evaluated according to this validity date,
which then allows you to evaluate the queries on time. In this way you are able to plan and
implement the necessary subsequent activities according to the deadline.
Customer inquiries shall be entered in the system for a Sales Area (A valid combination of sales
organization, distribution channel and division).
6.1.1.2 Quotations
A quotation presents the customer with a legally binding offer for delivering a product or
providing a service within certain fixed conditions. This offer is legally binding for the company
within a specified time period.
A quotation can be created independently or with reference to an inquiry.
The quotations entered in the system can be displayed and evaluated in a list. You can use
selection criteria to limit the list which will give you a more selective display and processing. For
analysis purposes, you can list all the quotations you processed during the last six months and
examine those that were rejected and for what reasons.
Important data captured in quotation is:
Sales Area (Sales Org / Dist. Channel / Division)
Customer number of the sold-to party
Validity dates (start and end)
Material numbers: The product being offered


Quantities
Prices
XXX is interested to capture different reasons for not converting Quotation to
order and can be used for monitoring and analysis. Standard reasons shall be
defined in SAP to capture this.
6.1.1.3 Sales Order Creation
Sales Order will denote the commencement of the Customer Order Management Cycle in the
system. All orders received by XXX would be entered in SAP R/3 as Sales Orders. The Sales
orders would register the customers order and records elements such as purchase order
number and date (if any), payment terms, shipping address, finished goods being ordered,
quantity, prices, expected delivery date, etc. This document serves as the central document in
sales order flow and automates the subsequent activities as much as possible.
A sales order can be created independently or with reference to a Quotation.
The following data shall be entered in the Sales Order:
Sales Area (Sales Org / Dist. Channel / Division)
Customer Code
Customer Purchase Order Number and Date (essential)
Payment terms
Pricing
Material Code
Quantity
Delivering Plant
The basic price for the material would be picked from the pricing masters. In case the sales
order is being created with reference to a quotation, the data entry effort would be
considerably minimized.


Material availability check shall be carried out at sales order level, if a material is not available,
user shall change the item category of the item manually, so that the system creates purchase
requisition automatically for the item.
Saving of sales order will commit the document and generate a number, which can be used for
all future references to that order.
6.1.1.3.1 Availability check
Available to Promise (ATP) availability check of SAP shall be activated for XXX which should help
XXX to perform confirmation of customer requirements. ATP check shall help XXX to manage
various customer specific stock requirements in SAP, with the reference of sales order no. XXX
shall be able to access and monitor various sales requirements passed to plant inventory
effectively by using ATP with individual sales requirements.
6.1.1.3.2 Pricing
Sales Pricing is one of the most important and integrated part of Sales and Distribution Module
of SAP. It offers a high level of control as well as flexibility to price various sales document like
inquiry, quotation, sales orders and invoices in sales.
Each item in a sales document is linked to a pricing procedure. Pricing Procedure in sales is a
logical combination of various price components like basic price, discount, and Freight, with
their inter dependencies. The following pricing components are envisaged in XXX:
Basic Price: Can be automatically determined based on the customer material
combination or purely by material; and cannot be overwritten at document
level. Creation of basis price in SAP shall be an authorised process in SAP.
Percentage Discount: A percentage of discount on the basic price per item. Can
be automatically determined based on the customer material combination or
purely by material; and cannot be over written at document level.
Value discount: Flat value discount per item. Can be automatically determined
based on the customer material combination or purely by material; and cannot
be over written at document level.


Value discount: Flat value discount for the total order .Will be entered manually
at header level of the document and apportioned to each item according to the
net value of the item.
Freight: Applicable on some orders. Will be entered manually at header level of
the document and apportioned to each item according to the net value of the
item.
6.1.1.3.3 Credit Check
Credit Management will be activated at the order stage (can also be activated at delivery stage
and at the stage of goods issue, if required). During sales transactions, the system takes into
account the open items in the customer account, the open billing items, unbilled goods issues,
open deliveries and open sales orders including the current document and compares it with the
credit limit set in the master. In case the total credit limit set for the customer in the specific
credit control area (which is linked to the specific company code) is exceeded by the order
amount, the system will issue a message showing the amount by which the limit is exceeded. On
event of blocked sales order due to credit check, user shall receive a system message while
saving a sales order. However user will be able to save the sales order.
Release of a blocked sales order due to credit check shall be an authorized process in SAP, and
an authorized person shall review such blocked sales order and release them after review.
Letter of credit received from customer shall be recorded as noted item in Finance module.
All the project customers shall be kept out of credit check through a separate document types.
6.1.1.4 Delivery Processing
Based on the sales order received and the promised delivery date, the goods would be
processed for dispatch from the delivery location (plant). The entire dispatch processing would
be controlled through the shipping function in SAP.
Delivery is the central document in the shipping process and is used to initiate all activities
relevant to shipping, such as Delivery creation, Picking, Goods Issue etc.
The Delivery in SAP is a Sales and distribution document for processing a delivery of goods. The
delivery serves as a basis for:
Planning material requirements


Picking
Billing
Delivery numbers will be internally generated.
A delivery document can be printed for accompanying the consignment. Standard Instructions
would be entered as text elements in the Delivery Order.
BBBBh Determination
Under FSD division, XXX manages Membrane and other products in bBBBhes, and supplies them
to the customer in First Expiry First out (FEFO) basis. Saps bBBBh determination functionality
shall be activated for XXX for the customer dispBBBh of all bBBBh managed finish goods.
A bBBBh determination process shall be run in the delivery document to select bBBBhes on
FEFO basis. However if required selected bBBBhes can be manually changed in the delivery
document before performing PGI.
Picking
The process of picking ensures that there is no discrepancy in the delivery quantity and picked
quantity. If, in case the picked quantity is less than the delivery quantity, the delivery quantity
must be suitably amended. Material Picking from warehouse shall be done through creation of
Transfer Orders in WM module .For details refer WM Module.

Posting of Goods Issue (PGI)
The Delivery process shall be completed with the Posting of goods issue. Posting Goods Issue
updates:
Physical stocks in the plant
Stock and cost of sales accounts (Cr. Stocks-Dr. Cost of Sales)
Delivery and sales order status
Billing due list
Goods issue is the final step in the delivery process. On completion of loading the goods onto
the truck, Goods Issue would be posted. It is a confirmation to state that the delivery has been
successfully processed and an intimation for the finished goods stocks to be reduced and cost


of goods sold to be increased. i.e. the stock accounting entry for reduction in stocks is passed in
the financial books of accounts as under:
Cost of Good Sold Dr.
Finished Goods Stock Cr.
The serial number has to be selected before PGI for all the materials for which serial numbers
profile is maintained at material master data level.
Once the goods issue is posted, no changes can be made to the delivery, except texts.
Goods Issue Reversal
Goods Issue (GI) Cancellation would normally be used in cases wherein the goods are still in the
premises of the plant and a discrepancy has been observed, for which a stock reversal has been
necessitated. This would aid in removing the goods issue posting without creation of a returns
delivery or posting of a goods receipt. Circumstances under which GI cancellation would
normally be used are as under:
Wrong Consignee / ship-to party: Goods Issue would be reversed and the
delivery deleted to ensure that no incorrect invoice and subsequent credit notes
are created. In such cases, the sales order would be reopened, for creation of
the correct delivery again.
Wrong material, quantity. In such cases, Goods Issue would be reversed and the
delivery reopened for further processing. Goods Issue would need to be posted
again after correcting the errors in delivery.
6.1.1.5 Billing
The document shall be subsequently billed. All the data in the billing document is defaulted
from the delivery document. The system returns an invoice number upon saving. The invoice
can be printed for handing over to the customer.
Once the document is saved the following accounting updates occur in the background:
Delivery and sales order status
Sales accounting & A/R (an accounting document is generated)

Customer Account Dr.


Sales Revenue Cr.

Prices entered in the sales order shall be copied to the invoice as it is to maintain
synchronization between sales order and invoice pricing.

6.1.2 Exceptions and Variations
Not applicable
6.1.3 Changes to the existing organization
Not applicable
6.1.4 Assumptions
It is assumed that all the trading material (except system, projects and customized control panel
sale) has public price list and has to be maintained in SAP System as Base price.
6.1.5 Dependencies
Automatic determination of pricing and other data from customer and material at quotation
and order level will only happen if all the required master data like pricing conditions, customer
and material master are properly maintained.
6.1.6 Gaps /Issues Identified and Solutions
Before confirming the sales order to customer, XXX wants to approve the order, it is not
supported by standard SAP, and external ABAP development shall be discussed.
6.1.7 Authorisation Requirements
Creation of Pricing, material and customer master shall be controlled through authorization.
6.1.8 Forms and reports required
Commercial quotation printing
Order confirmation printing
Delivery note printing


Proforma Invoice printing.
Invoice printing
Completed and Open Inquiry List
Completed and open quotations reports
List of open and completed sales order
List of Billing Due list
List of Invoice.
6.1.9 Integration with other modules
MM Module
WM Module
FI Module
CO Module
6.1.10 Interfaces
NA
6.1.11 Data conversion
Master Data uploading
Open sales orders would be manually entered into SAP.

6.2 Show Room Sales (Cash Sales)
6.2.1 Process Flow
The following graphic shows how Show Room Sale is processed in the system:



XXX makes cash sales to the customers through SPD and AAAs chain of showrooms. Cash sales
shall start from sales order entry, and ends at invoicing the customer. Such sales shall be
entered in SAP using a separate sales document type to track and monitor such sales separately
in SAP.
A default sales employee shall be maintained as a partner function for the cash customer, and
XXX shall change the sales employee, if needed at the transaction level.

XXX shall use one time customer in the Show room sales order, if the Customer is not registered
in the Customer database of XXX.
Following pricing components are envisaged in Show Room sales:


Basic Price: Can be automatically determined based on the customer material
combination or purely by material; and cannot be overwritten at document
level. Creation of basis price in SAP shall be an authorised process in SAP.
Percentage Discount: A percentage of discount on the basic price per item. Can
be automatically determined based on the customer material combination or
purely by material; and cannot be over written at document level.
Value discount: Flat value discount per item. Can be automatically determined
based on the customer material combination or purely by material and cannot
be over written at document level.
Value discount: Flat value discount for the total order .Will be entered manually
at header level of the document and apportioned to each item according to the
net value of the item.
Freight: Applicable on some orders. Will be entered manually at header level of
the document and apportioned to each item according to the net value of the
item.
Proforma invoice shall also be defined for showroom sales, details can be clarified at the time of
realisation.
Sales order, delivery and Invoice processing will be same as institutional sale as explained above.
Not applicable
Not applicable
6.2.4 Assumptions
It is assumed that all material has public price list and has to be maintained in SAP System as
Base price.
6.2.5 Dependencies
Not applicable.


Standard SAP does not provide faster order entry process for showroom sale.
Sales Front end application shall be a separate ABAP development to fill this gap.
6.2.7 Authorization Requirements
To be finalized at the time of realization.
Proforma Invoice printing.
Vendor wise sales report.

FI Module
MM Module
WM Module

6.3 MRO Sales
6.3.1 Process Flow
MRO is a new concept of sale which XXX is into. MRO stands for Maintenance, Repairs and
operations, under which XXX sales any materials, which may not come under any of their
existing product lines. Apart from the normal sales ,MRO also enters into a blanket agreement
with a customer to supply a set of materials as per the agreed value over a fixed period of time.
The following graphic shows how a MRO business transaction is processed in the system.



6.3.1.1 Inquiries
MRO inquiries shall be logged in a same way as Institutional sale (refer Institutional sale
inquiries above). Usually at inquiry stage materials are not known, still then inquiry can be


entered with customer details a header text IDs shall be defined to capture the description of
the inquiry , which can be used it for further reference.
6.3.1.2 Quotations
Quotation process shall be same as explained in institutional sale above. MRO deals mostly with
the materials which are normally doesnt forms as normal stock able items and therefore the
material master and price masters has to be created in the system before creating the
quotation.
6.3.1.3 Contracts
Customer contracts are outline customer agreements that display when sales materials or
services are sold within a certain time period. XXX shall use Material relevant Value and
Quantity Contracts in SAP to represent MRO agreements.
Value Contracts
A value contract is a contractual agreement with a customer that contains the materials and/or
services that they may receive within a time period and up to a target value.
A Value Contract shall be created in the system prior to the sales order, and it should be
referred while releasing a sales order for the customer supplies.
When a release order is created for the contract, the system automatically updates the released
values in the contract. The release order value is calculated from the total of the open order and
delivery values, plus the value that has already been billed to the value contract.
Quantity Contracts
A quantity contract is an agreement that your customer will order a certain quantity of a
product from you during a specified period.
The customer fulfils a contract by placing sales orders against it. These sales orders are known as
release orders.
When a release order is created, you refer to the relevant contract, and the system
automatically updates the released quantities in the contract. Otherwise, processing a release
order is just like processing a standard sales order.
Contract can be created with reference to Quotation and independently without any reference .
Contract shall only be created in case customer enters into a agreement with ZZZ for supply of
agreed material at agreed value.


6.3.1.4 Sales order
A sales order can be created with reference to quotation or with reference to contract or
independently. Sales orders for the agreement customers should be created with reference to
contract only. One separate document types shall be defined for such agreement customer sales
order creation. Contract pricing shall be copied as it is, in the order as per release quantity.
Other Sales order functionality explained above for institutional sale shall be applicable to MRO
sales orders also.
Credit check functionality explained above in the institutional sale shall be applicable for MRO
sale.
6.3.1.5 Delivery
MRO delivery process shall be same as Institutional sale.
6.3.1.6 Invoice
MRO Invoice process shall be same as Institutional sale.

Not applicable.
All the existing blanket agreements has to be maintained as contracts in SAP
6.3.4 Assumptions
Base price exist for all the MRO material and same shall be maintained as price master to
determine basic price in sales order.
6.3.5 Dependencies
Not applicable.
6.3.7 Authorisation Requirements
To be finalise at the time of realisation.


WM Module
MM Module
FI Module

Open Agreements to be entered manually.
Master data uploading.

6.4 System Sales
6.4.1 Process Flow
System sale process shall follow the same process flow starting from inquiry, quotation, sales
order, delivery and invoice.

Clarification and further discussion is require to finalize the process.

6.5 Project Sales
6.5.1 Process Flow
BBB and CCC Company under the flagship of XXX execute various kinds of projects. S&I ,FSD and
AGD divisions of BBB and LV and BMS division of CCC are specialized for the execution of the
project in their respective fields. The process begins when XXX receive an inquiry for the project.

All the customer projects XXX undertakes to execute the complete scope of the contract with
the customer for a fixed value.
The planning, resource allocation, execution and complete costing of the project will be handled
by the Project Systems (PS) module of SAP. In Sales and Distribution module will handle the


customer Inquiry, Quotation , billing and account determination. The sales process in SD will be
tightly integrated with execution in PS, so that billing can be linked to the completion of certain
milestones in PS.

The following graphic shows how a Project Sales transaction is processed in the system.

6.5.1.1 Inquiry

An inquiry shall be logged in the system for the project customer. A common project material
shall be created in the system to represent project item and same material code shall be used
for all Project inquiries. Description of the material can be changed as per the project at inquiry
level. Header text ID shall be defined at inquiry to record any kind of text description related to
project inquiry.



After creating Inquiry, a project shall be created; where in initial cost planning shall be done.
Please refer PS Blueprint for project creation and cost planning.

Once the project is created in PS, the WBS element for billing has to be assigned to inquiry item
to link the project with inquiry.

6.5.1.2 Quotation

The planned cost in the project shall be copied and sales price shall be determined and
transferred to the quotation. It is important to note that only the summarized total cost based
on cost elements shall be copied in the quotation pricing. In this case, it is important to note
that Costs planned in WBS based on cost elements shall only be copied in the SD Quotation.

In sales pricing for quotation a condition type shall be defined to account for the Margins to be
built over the costs. A manual discount condition shall also be defined to incorporate discount if
any in the project quotation.

Every time the cost is revised, sales pricing shall be determined and transferred it to the
quotation. In this process, system creates new quotation for every revision. Through document
flow functionality of SAP, it can be tracked under an inquiry document number.

6.5.1.3 Sales Order
Once the customer places a firm order for the project, the sales order shall be created.Sales
order can be created with reference to the quotation. In this case, different order items
reflecting the services to be provided from the quotations are also copied. Therefore it is
advisable to create the order without reference, a single item (project material code) can be
used at sales order that describes the overall product for project.
Number of items in the sales order shall depends on the WBS in Projects relevant for billing and
account assignment.


At the time the sales order is entered in the system, in most cases, the Project Definition would
have been created in the PS module with its highest level WBS element and hierarchy in place.
There will be a two level integration between PS and SD for Project Sale:
Account Assignment
Since all the costs of the project are going to be collected in PS, the revenue from the Sales
order must also be account assigned to the WBS element under the project definition. For this
purpose, the WBS element number must be entered in the account assignment field of each
item of the sales order. The WBS element being entered in the sales order must have been
flagged as billable and released in PS. This is a prerequisite for its use in the sales order. In case
the WBS number is not available the user can save the order in an incomplete state, complete
the account assignments later and again save the sales order. This will facilitate project-wise
profitability analysis after settlement to CO-PA.
Milestone Billing Plan
The project would also have various activities defined as milestones in the project. Some or all of
these milestones can be flagged as relevant for SD by checking the box Sales Document Date
Indicator. An invoicing percentage can also be assigned to the milestones, though it is not
mandatory. These milestones are then available in the sales order for generation of a Milestone
Billing Plan. In this billing plan, confirmation of the related activity automatically removes the
billing block from the specific line item of the plan and that item in the plan is available for
billing. To achieve this functionality, it is necessary to enter the WBS element number in the
Billing Plan of the sales order item so that all the billable milestones appear in a pop-up
window. The user can then select the milestones for copying in the billing plan and assign an
invoice percentage to them. The dates will be copied from the milestones but can be modified in
the billing plan.
To bring about this integration, PS and SD teams will need to work in co-ordination.
One of the several fields appearing in the billing plan in sales order is the Billing document
type, where the default billing type will appear. In case Down Payment functionality is to be
used, a different billing type (Down payment request) must be entered in the appropriate line of


the billing plan. The accounting entry of billing request will be debit the customer account with a
special GL indicator, indicating down payment.
Once the sales order is saved, the system will internally generate a number for the sales order.
This number is the basis for all future references.
6.5.1.4 Activity Confirmation and Billing
There are two ways in which a line item in the billing plan will be released for billing:
In case of those billing plan items that are created within the sales order without
reference to the Project, the user will remove the billing block from that line manually
and save the order.
In case of the items linked to milestones in PS, the final confirmation of the activity will
automatically remove the billing block from the line item and release it for billing.
In both cases the default billing date will be picked up from the billing plan, where it can be
changed to the current date or any date of choice.
In SAP, there are several ways of billing a document:
Individual Billing (transaction code VF01): The user explicitly enters the sales order
number in the individual billing screen, where the invoice will be saved after checking
the customer data, payment terms, prices, etc. If some of this data is incorrect, the
transaction can be terminated. Then necessary correction needs to be made in the
source document (sales order) and then billing can be carried out.
Billing Due List (transaction code VF04): The user runs a billing due list, which will list out
all the items relevant for billing as of a particular date. This selection can be restricted by
various parameters, for example sales organization, billing date, etc.
All the documents can be billed at once using the save command
Each item from the list can be billed individually, in the foreground, where the
invoice will be saved only after checking the customer data, payment terms,
prices, etc. If some of this data is incorrect, the transaction can be terminated.


Then necessary correction needs to be made in the source document (sales
order) and then billing can be carried out. This is similar to transaction VF01
the only difference is that the user uses a billing due list instead of entering the
sales order number explicitly.
Not Applicable
All the BBB projects and CCCs Engineer to Order and BMS projects shall be created as projects
in SAP system.
6.5.4 Assumptions
All the BBB projects and CCCs Engineer to Order and BMS projects shall be processed in the
system as projects cycle.
6.5.5 Dependencies
Relevant master data like customer master has to be in place before creating inquiry.

To copy the milestone from the project milestones should be flagged as relevant for SD by
checking the box Sales Document Date Indicator.
Only the summarized costs planned at projects is copied to the sales quotation.
Project Revenue recognition to be discussed with Users.
At Project quotation level only commercial page of the quotation shall be available from the SAP
other requirements like terms and conditions and BOQ shall be maintained out side SAP.
To be finalize at the time of realization.
Commercial quotation Printing
Invoice Printing


PS Module
FI Module

6.6 Assemble to Order Sales (CCC)
6.6.1 Process Flow
CCC manufactures and supplies standard control panels. All such orders which are repeated and
BOM doesnt change from order to order shall be covered under Assembly to Order sales
processing of SAP. Such sales shall put a customer specific manufacturing requirement on the
plant and inventory for such sales order shall be maintained specific to the customer sales order.
6.6.1.1 Inquiry
Inquiry process shall be same as explained above in Institutional sale process.

6.6.1.2 Quotation
Quotation process shall be same as explained above in Institutional sale process.

6.6.1.3 Sales Order
A separate sales order type shall be defined for XXX to cover such business scenario. The
planning of FG manufacturing will be sales order based, which means a sales order will trigger a
planned order on saving the sales order. Refer PP Blueprint for details.
The delivery of ATO orders will be issued from sales order stock.
List of all possible order types shall be provided during the baseline testing phase of the
implementation.
Pricing shall be carried out for the parent material in the order only. Pricing master shall be
maintained for the parent material to automatically determine the base price .Provision for Item
/ total invoice discount shall also be kept in the pricing.


6.6.1.3.1 Sales Order Costing
It is possible to run a standard cost estimate of a material in the, quotation and sales orders of
SAP. While executing assemble to order sales orders XXX shall run the standard cost estimate
and save the estimation as a calculated cost in the sales order. For details refer to CO blueprint.
6.6.1.4 Delivery
Delivery process shall be same as explained above in Institutional sale process.

6.6.1.5 Invoice
Invoice process shall be same as explained above in Institutional sale process.

Not applicable.
Not applicable.
6.6.4 Assumptions
Selling price( Base price) for these standard items shall be maintained as a price master data and
shall be automatically determined at quotation and order.
Not applicable
PP Module
FI Module
CO Module
MM Module


Master data uploading .

6.7 Consignment Sales
6.7.1 Process Flow
ZZZ delivers materials and equipments for display or stock to their approved dealers and
distributors on consignment basis. Consignment goods are goods which are stored at the
customer location but are owned by XXX. The customer is not obliged to pay for these goods
until they remove(sale) them from consignment stock. Otherwise, the customer can usually
return consignment goods which are not required.
In MM , the consignment stock is managed as special stock in inventory and is assigned to
specific customers. This enables to keep track of stock by customers.
There are four main transactions for processing consignment stock in SAP System. The following
graphic shows how a consignment business transaction is processed in the system.





6.7.1.1 Consignment fill-up
Consignment fill up is used to supplement the customers consignment stock. Goods issue of the
appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock).
The goods remain in the possession of the XXX.
When XXX ship consignment stock to the customer, it shall be recorded in the system by
creating a consignment fill-up order. A separate document type shall be defined for
consignment fill up process. As a result the system carries out following actions:
The relevant quantity is removed from XXX regular inventory in the plant and is added
to the special stock for the customer. The total valuated stock for the plant remains the
same.
The Consignment fill-up is not relevant for pricing since the consignment stock remains
the property of XXX.
6.7.1.2 Consignment issue
Consignment issue enables the customer to take consignment goods from the special stock for
their use or to sell. Consignment issue involves removing the goods from the special stock and
making it the property of the customer.
When the customer removes consignment stock to use or sell, XXX should record the
transaction in the system by creating a consignment issue order. A separate document type shall
be defined for consignment issue process. As a result, the system carries out the following
actions:
When goods issue is posted, the relevant quantity is deducted from both the customers
special stock and XXXs own total valuated stock.
The transaction is relevant for pricing since the goods now became the property of the
customer.


6.7.1.3 Consignment pick-up
Any consignment goods stored at the customers warehouse that havent been used can be
reposted to XXXs companys warehouse. If the customer returns consignment stock to XXX , it
shall be recorded in the system by creating a consignment pick-up order. A separate document
type shall be defined for this process.
As a result, the system carries out the following actions:
When goods issue is posted, the relevant quantity is deducted from the customers
special stock and is added back into XXXs regular stock at the plant where the goods are
returned. XXXs total valuated stock remains the same since the returned stock was
regarded as part of XXXs own inventory even while it was at the customers premises.
This transaction is not relevant for billing.
When delivery is processed for returns and goods receipt posted, the returned material if
activated for quality will automatically goes for quality inspection.
6.7.1.4 Consignment return
Consignment returns are used for when the customer wants to return goods to the consignment
stock. If the customer wishes to claim on consignment goods which have already been issued, It
shall be recorded creating a consignment return order. A separate document type shall be
defined for this process. As a result, the system carries out the following actions:
When goods issue is posted, the relevant quantity is added to the customers special
stock at the XXXs plant where the goods are returned.
Since the ownership of the goods is passed from the customer back to the XXX , the
transaction is relevant for billing.
In this case, a credit memo can be issued to customer for the returned goods. Consignment
returns shall be created with reference to a consignment issue.


When creating consignment returns, the system shall automatically sets a billing block. To credit
a return, authorized person should first approve the request for a credit memo by removing the
billing block in the return order header.
Not applicable.
Not applicable.

6.7.4 Assumptions
Sales engineer responsible for the customer, where consignment stock is kept should regularly
update the consignment sale figure by creating consignment issue in SAP system.
6.7.5 Dependencies
Regularly all the transaction shall be entered in the system to maintain accuracy in stocks level.
Offline communication regarding the consignment sale from the customer to XXX.
Customer wise consignment stock.
MM Module
FI Module
Open consignment orders are to be entered manually.



6.8 Third Party sale (Drop Shipment)
6.8.1 Process Flow
In third-party order processing, XXX does not deliver the items requested by a customer directly.
Instead, XXX pass the order along to a third-party vendor who then ships the goods directly to
the customer and bills XXX. Then XXX in turn bills the customer .The following graphic shows
how a third party business transaction is processed in the system.

6.8.1.1 Sales order
If a material is always delivered from one or more third-party vendors. XXX can specify in the
material master that the material is a third-party item. During subsequent sales order


processing, the system automatically generate a purchase requisition. . Purchase orders are
created from purchase requisitions in the usual way. For more information about creating
purchase orders, refer MM blueprint.
In the case of a material that XXX normally deliver but occasionally need to order from a third-
party vendor, manually the item category has to be change during sales order processing. The
item is then processed as third-party item.

6.8.1.2 Billing
Only after the vendor invoice is received, a customer invoice shall be created for the quantity in
the vendor invoice.

6.9 Sales Return
6.9.1 Process Flow
Following reasons for sales returns shall be stated at XXX:

Wrong selection from customer.
Wrong selection by salesperson.
Wrong data on name plate of material.
Warranty
Exchange

The sales returns will be handled in the system through a separate document type. This
document can be created with reference to the original sales order or invoice according to the
requirement. The header and item level data in the original document will be automatically
captured in the Returns Order. When delivery is processed for returns and goods receipt
posted, the returned material if activated for quality will automatically goes for quality
inspection. Only the quantity will be updated but no change in the inventory valuation will take
place yet. In quality component stock type will be changed to unresticted depending on the


situation. (The user can decide to post the material in unrestricted use or blocked stock
depending on the condition.)

At that point, an accounting document will be generated in the background, which will reverse
the effect of goods issue.

Inventory A/C Dr
To Cost of Goods Sold a/c Cr.

A credit memo shall be generated with reference to the returns order. The accounting entries
will reverse the effect of billing. The credit memo can be printed. The returned material can be
resold after it is checked and found in good condition or reprocessed. A new sale order has to
be executed to sell the materials.

6.10 Sales Promotions
6.10.1 Process Flow
XXX practices various types of sales promotions to boost sales in various territories across
KSA. XXXs promotional activities can be classified broadly into two categories.
Issue of free samples to the customers
Value /percentage discount on invoice.
Rebates
6.10.1.1 Issue of free samples to the customers

XXX issues samples to the customers as billable and non-billable on a case to case basis.It has
to be split into two distinct process as follows:

Non billable sample:
In case of non-billable samples the product are given to customer on a non returnable basis .


The sale process would include:
Preparation of sample sale order
Deliver Order
Picking
Post goods issue
Free of charge supplies of the samples shall be defined as a unique process in SAP and an
authorised person shall only be able to execute this process.
Billable sample:

XXX initially issue billable samples to the customer for demonstration. Subsequently customer
may buy or return or sometime retains the product with him as free of charge. This scenario
shall be address as follows:

This types of sample issue shall be recorded in the system as consignment fillup order and later
on based on customer decision there can be three possibilities:

If customer buys it shall be recorded in the system as consignment issue(refer
consignment issue process explained above)
If customer returns it shall be recorded in the system as consignment pick(refer
consignment pickup process explained above )
If customer retains it shall be recorded in the system as consignment issue with 100%
discount to customer. The discount condition shall be manually entered in the
consignment issue order.

6.10.1.2 Value/percentage discount
Sometimes XXX launch promotions to clear slow moving goods by giving flat value /percentage
discount on invoice items. In SAP this value discount can be linked to a sales deals and thereby
to promotions and can be defaulted automatically at sales order ,based on customer material


or material alone. Entered value shall be directly deducted from the net document value and
shall reduce total invoice value.
This discount shall be treated as an expense and shall be posted to distinct GL account.
6.10.1.3 Rebates

XXX also gives rebates to their customers .It is a special discount which is paid retroactively to a
customer. This discount is based on the customer's sales volume over a specified time period.
For all types of rebates offered a rebate agreement shall be created in the system.The rebate
agreement type determines which data the system automatically proposes for the
corresponding rebate agreement. For example, the system can propose
which condition types to use in an agreement
which validity period the system automatically proposes for an agreement
which status is required before an agreement can be processed for payment.
All the rebate agreement type available in the standard SAP shall be used to fulfill the rebate
requirement of XXX.
A rebate agreement usually consists of a number of individual agreements in the form of
condition rCCCrds. A rebate agreement and the condition rCCCrds it contains are uniquely
identified by a rebate agreement number.
The rebate agreement includes general information and terms that apply to all the condition
rCCCrds it contains. For example, the method of payment and the rebate recipient specified for
a rebate agreement will apply to all the condition rCCCrds created within the agreement.
The following data can be defined in a rebate agreement. This general data applies to all
condition rCCCrds that is created within the rebate agreement:
Validity period
Status (for example, whether the agreement is released for settlement)
Rebate recipient (the party who receives the credit memo)
Currency (default from the sales organization)
Method of payment (check, bank transfer, and so on)
The credit memo passes this information on to Financial Accounting.
The following data can be defined for each condition rCCCrd in a rebate agreement:
Basis for the rebate (customer, customer/material)


Validity period (the validity period for each condition rCCCrd must be the same as or lie
within the validity period of the rebate agreement)
Condition rate
Material for settlement
Accrual rate
Other control data, such as the pricing scale type

Material for Settlement
XXX may have to create rebates that do not depend on a material, but instead, for example, on:
a customer
a group of materials
XXX then need to refer to a material for settlement. The system uses this material when ZZZ pay
out the rebate.
In this case users should create a special material master rCCCrd for this material for
settlement.It does not matter which material type and material application type to use.This
material shall have the material master rCCCrd from the sales and accounting views.

Accurals
Rebate accruals allow accounting department to keep track of how much XXX owes customers
with whom XXX have rebate agreements.
Accrual rate can be manually entered in each condition rCCCrd. The accrual rate should reflect,
as accurately as possible, the rate at which the rebate will be calculated at final settlement.
Every time a rebate-relevant billing document (an invoice, a credit or debit memo) is processed,
the system automatically posts an accrual to financial accounting (FI). Within FI, the rebate
accrual is posted to two accounts: a sales deduction account and an accrual account. The accrual
account is cleared when the rebate agreement is settled with a credit memo.
Rebate Settlement
A rebate agreement can be settled partially or fully.The system uses the services rendered date
(which is the billing date) to determine whether a billing document qualifies for rebate
processing. To qualify, the date must fall within the validity period of one or more rebate
agreements.


At final settlement of a rebate agreement, the system automatically
calculates the rebate based on the sales volume statistics
deducts any previously paid rebates
It then creates a credit memo request, and proposes the end date of the agreement validity
period as the billing date. The system also reverses any accruals that have been posted.

Not applicable.
All the billable sample , which are not known at the time of issue, whether the sample shall be
bought or returned or retained by the customer should be issued through consignment fillup
process initially.
6.10.4 Assumptions
It is assumed that the responsible sales engineers should update the sample status (bought
,returned ,or retained by customer ) regularly and timely.
6.10.5 Dependencies
Proper monitoring and control will be only possible if all the transactions shall be updated by
respective sales employees timely in the system.
Not applicable.
To be finalise at the time of realization.




MM Module
FI Module
Billable samples at customer have to be entered in the sap system manually.

6.11 Debit and Credit Notes
6.11.1 Process Flow
Debit and Credit Memos at XXX shall be issued from SD module only in case of price difference,
wrong selection of material, and quantity difference. The sale process would contain the
following steps:
Debit/ Credit Memo request.
Debit / Credit Memo.
The user in Sales department shall enter a credit memo request or a debit memo request with
reference to the invoice. Most of the customer, material and price-related data will be captured
from the original document.
The user will enter the following data:
Material and quantity (edit the defaulted data)
Price / Differential price (the extent to which credit or debit is to be charged)
6.12 Scrap Sales
6.12.1 Process Flow
Scrap is generated at XXX from various sources like:
Waste generated from manufacturing / assembly operations (CCC)
Quality rejected material received from vendors or customers.
A separate order type shall be defined to capture such Scrap Sale in SAP. The sale process would
contain the following steps:

Creation of Sales order


Creation of Delivery
Creation of Invoice

Billing cycle for Scrap shall be executed in the similar manner, as normal sales cycle. A separate
material code shall be defined to represent scrap in SAP.
Income generated out of scrap shall be posted to a distinct revenue account as other income.
Basic price to sell scrap shall be entered manually in the sales order.
Relevance of credit control on scrap sales.
6.13 Van Sales
6.13.1 Process Flow
AAA is planning to introduce mobile van sale to cover the areas in KSA where AAA is not present
Physically. One time Van customer shall be created in the system to rCCCrd all the sales booked
by van.
Van shall be created as storage location under a plant in MM, and the material shall be
transferred to the van storage location .Goods issue at the time of sale shall reduce the stock
from the van storage location.
Since it is physically not possible to bill each transaction of van sale it is advisable to raise a day
end one invoice to the van customer in the system. Billing cycle for van shall be executed in the
similar manner, as normal sales cycle involving following steps:
Creation of Sales order
Creation of Delivery
Creation of Invoice

Not applicable.
Not applicable.


6.13.4 Assumptions
It is assumed that van sale, shall operate like AAA show rooms.
6.13.5 Dependencies
Not applicable.
Not applicable.

Sales Information System

The basic reporting requirements shall be met in SAP using Sales Information System. Please
note the following points:
Drill down is possible at any level, if the facility to switch drill-down.
One report normally refers to one time period (exception: time series)
Comparison only with previous year figures and planned figures possible

One information structure for detailed analysis shall have the following Characteristics:
Sales Organisation
Distribution Channel
Division
Material
Material Group
Customer
Sales Office

For each report, the following functionalities are available:


Standard Drill-down
Switch Drill-down
Hierarchy Drill-down
ABC Analysis
Cumulative Curve
Time Series
Top N / Bottom N Analysis
Comparisons: Plan / Actual, Current Year / Previous Year (same period)
Graphics
Switch Currency
Download to Spreadsheets / Pivot Tables
A new information structure shall be created for detailed analysis of sales as per the
requirement of XXX. The Characteristics required for the report shall be discussed at the time of
realization.
List of standard Reports
Detailed reports are line item level reports, queried from the database tables. They are useful
for users who are engaged in transaction processing. The following reports relevant to XXX
requirements are enlisted below:
Report Transaction Code
Customer wise Sales Summary VC/2
(Incoming orders and invoices)
Inquiry List (Open/Completed) VA15
Incomplete Inquiries V.03
Quotation List (Open/Completed) VA25
List of Incomplete Quotations V.04
List of Expired Quotations SDQ2
List of Expiring Quotations SDQ1
List of sales orders (all orders / only open orders) VA05
List of Incomplete Orders V.02
List of Sales orders blocked for billing V23
List of Contracts (all orders / only open Contracts) VA45


List of Incomplete Contracts V.06
List of Expired Contracts SDV2

List of Expiring Contracts SDV1
List of all deliveries VL060
List of deliveries due for goods issue VL060
List of all invoices (customer wise /material wise) VF05
List of Invoices blocked for Accounting VFX3
List of Documents blocked due to Credit Check VA14L
Release documents against credit Check VKM2
Analysis of outstanding Customer FBL5N
Balances based on Sales Organization/distribution channel.
Display Condition Records VK13.

Hope this document covering SD Blue print Sample template as requested by our friends. I got
inputs from my friends Johna, Patrick & Paul. Great bunch of thanks to them.

I like share my thanks to everyone initiated me in document preparation.

Regards,
G.V.Shivakkumar

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