04 VU Intro ERP Using GBI Case Study SD A4 en v2.01

CASE STUDY
Sales and Distribution (SD)

Case Study
This case study explains an integrated sales and distribution process in
detail and thus fosters a thorough understanding of each process step and
underlying SAP functionality.
Product
MOTIVATION
PREREQUISITES
SAP ERP
G.B.I.
Release 6.04
The data entry requirements in the

sales & distribution exercises (SD
1 through SD 8) were minimized
because much of the data was
stored in the SAP system. This
stored data, known as master data,
simplifies the processing of
business transactions.
Before you use this case study, you

should be familiar with navigation in
the SAP system.
Level
Undergraduate
Graduate
Beginner
Focus
Sales and Distribution
Authors
Bret Wagner
Stefan Weidner
(edited Paul Hawking)
In the sales order process, we

used master data for customers,
materials (the products we sold)
and pricing to simplify the sales
order process.
In this case study, we will create
the master data for a new
customer.
In order to successfully work through

this case study, it is not necessary to
have finished the SD exercises (SD 1
through SD 8). However, it is
recommended.
NOTES
This case study uses the Global Bike
Inc. (G.B.I.) data set, which has
exclusively been created for SAP UA
global curricula.
Version
3
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CASE STUDY
At the completion of this workshop you will be able to:
Understand the Master data associated with the Sales Distribution process
Understand the Organisational Units involved in the Sales and Distribution
Describe the basic business process for sales order processing in the SAP ERP system.
Create a customer order.
Trigger delivery of the sales order
Pick and post goods issue.
Ship Goods
Invoice Customer
Understand the role of the Document Flow
Scenario
A customer contacts your company for a quote for bikes you sell. Shortly after issuing the quote a
Purchase Order arrives from the Customer for the Material. You will then create a Sales Order
and commence the Delivery process. Once the goods have been issued then you will Invoice the
Customer. Once the Customer sends payment you will commence the Accounts Receivable
process.
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Organisational Units
Defining your organizational structure in SAP System is an important step. It requires thorough
analysis of how your organization wants to run your business.
The Sales and Distribution module uses some organizational units that can only represent sales
and distribution processes, such as Sales Organisation, Distribution Channel, Division or
Shipping Point. Other organizational units, such as company code or plant, are used in Sales and
Distribution and in other modules in SAP ERP.
y Company Code - an independent accounting unit. Balance sheets and Profit & Loss
Statements, required by law, are created at the company code level.

y Sales Organisation - an organisational unit within logistics, that structures the company
according to its sales requirements. A Sales Organisation is responsible for the Sale and
Distribution of goods and services. Each business transaction is processed within a Sales
Organisation. It is responsible for distributing goods and services, negotiating conditions of
a sale. It is the level to which you sum up sales figures for reporting and analysis.
The Sales Organisation must be specified in all sales documents. It is therefore available for
all basic functions of SD (such as pricing, availability, etc.).
y Distribution Channel - represents the channel through which sold materials or services reach
Customers. Typical Distribution Channels include wholesale, retail and direct sales.
Within a Sales Organisation a Customer can be supplied through several Distribution
Channels. In addition, the Material Master data relevant for sales, such as prices, minimum
order quantity, minimum quantity to be delivered and delivering plant, can differ for each
Sales Organisation and Distribution Channel.
y Division - used to represent a product line. In SD, the division allows you to make customer-
specific agreements such as: partial deliveries, pricing agreements, special payment terms. At
least one Division must be defined in the SD module.
y Sales Area - a specific combination of Sales Organisation, Distribution Channel, and
Division.
y Plant - a manufacturing facility, distribution center, or office. A location that stores inventory
or renders services.
y Storage location - allows the differentiation of material stocks within a plant.
y Warehouse - organizational divisions of a plant for the purpose of maintaining materials that
are stored in different places.

y Shipping point - a fixed location that carries out shipping activities. Each delivery is
processed by only one shipping point.

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The organizational units involved in the scenario are displayed below:
US00
Global Bike Inc
Company code
UE00
US East
Sales
Sales Organization
organization
WH
IN
Wholesale
Internet
Distribution
Channel
Distribution
BI
BI
Bikes
Bikes
Division
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Delivery Structure of GBI
UE00
Sales organisation
Sales organization
US East
US00
GBI
Company
Company Code
code
MI00
Plant
Plant
Miami
MI00
Shipping
Shipping point
point
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Miami
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CASE STUDY
Master Data in Sales and Distribution

The Master Data that is used in Sales and Distribution include:
y
y
y
y
y
Customer Master
Material Master
Customer Material Information Record
Output Master
Condition Master data in Pricing
Customer Master
Data on customers is important for both the accounting department and the sales and distribution
department. In order to avoid data redundancy, accounting data and sales and distribution data is
stored in one master record, the customer master record.
The customer master groups data into categories: general data, sales area data, and company
code data. It includes all data needed for business transactions and correspondence with the
customer. This includes address data, shipping data, sales data, and data for invoice creation.
Customer Master Data

General Data
Relevant for SD and Accounting
Valid for all organisational units
Sales Area Data
Company Code Data
Relevant for SD
Relevant Accounting
Valid for all Sales organisation,

Distribution channel and Division
Valid for Company code
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SD 1: Display Customer Master Record

Exercise Use the SAP Easy Access Menu to display a customer.
Time 10 min
Task Global Bike Inc. has numerous customers both in the US and in Germany. Display one
customer for the US (Philly Bikes) and one for Germany (NeckaRad).
In order to display a Customer , follow the SAP Easy Access menu path:
Menu path
Logistics Sales and Distribution Master Data Business Partner

Customer Display
1. Double-click
to start this transaction..
On the next screen, the SAP system expects you to enter search criteria such as
the customer, the company and sales area data. You can use the SAP ad-hoc
help to have the system explain particular fields on the screen.
2. Press F1 in Customer field to display the Help for this field.
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F1
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According to the SAP definition, in the Customer field, SAP expects you to
put in the unique key identifying the customer master record.
3. Click
of the Help window to close the window.
As you do not know any customer number in the GBI company, you need to
find them.
4. Click in the Customer field to move the cursor to this field
5. Click
to display search dialog box.
Tabs allow you to specify different search criteria. Values in the text boxes are
used to filter the search. On the Customers (by company code) tab, you may
enter any information you know of a customer you are looking for. In our case,
in the Search term field, enter the three-digit number (###) that was given to
you by your instructor.
Note: Every time the curriculum material requests you to type in ###, please
enter the three-digit number assigned to you for this class. As each student has
its own set of data, this number is used to distinguish between individual data
sets. Please remember that all participants are working in the same GBI
company and if not setting their search criteria as requested could see all
master data (as in a real company). As for customer master records, if you
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CASE STUDY
would like to see once all 1000 copies of each customer, you can leave the
Search term field blank.
6. Type ### in the Search term field.
###
7. Click the Company Code field to move the cursor to this field.
8. Press F4 to display the Search screen.
9. Double-click Global Bike Inc. in Dallas to select this company.
US00
Notice that the Company Code now appears in the Company Code field.
10. Click
search.
or press <ENTER> to accept the entries and perform the
This will produce the following screen. Remember that the customer numbers
could be different on your result screen.
11.
Double Click Philly Bikes to select it.
Philly Bikes
The search result window will close, and the customer number for your
number (###) of the Philly Bikes will be entered in the Customer field. In
addition, the system will automatically fill in the Company Code field with
US00. Again, note that your customer number might be different than the one
in the screen below.
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12. Click
or press <ENTER> to display the Customer Master record
stored for Philly Bikes.
The following screen appears.
On this screen, you can see the General Data of your Philly Bikes customer.
In SAP, this means all information of this customer that is relevant to the entire
GBI concern (US and Germany) such as global name and address. You can
click on the other tabs to see other global data stored for Philly Bikes.
You can display only the US-specific data;
13. Click
to this screen
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button on the Application Toolbar to move
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CASE STUDY
Note that the Company Code number (US00) has been added to the screen.
Data such as Reconciliation account or Sort key are Company Code specific
data and different values could be entered for other Company Codes, e.g.
DE00 (Germany).
You now want to display the details for the customer, NeckaRad in Germany.
14. Click
to return to the Customer Display: Initial Screen.
15. Click the Customer field to move the cursor to this field.
17. Type Neck* in the Name field.
F4
Neck*
Using a wild card will display all Customers with a name starting with
Neck. As the Customer you are looking for is located in Germany you
need to remove US00 from the Company Code field if it appears.
18. Press <ENTER> to accept the values and perform the search.
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A list of customers satisfying your search criteria appear on screen..
19. Double-click NeckaRad with the Customer Number 20(###) to

select it.
NeckaRad
The list of Customers disappears and the Customer details after transferred to
the Customer Display screen.
20. Click
to display the Customer Details.
"What is the region for this Customer?

21. Click
to return to the SAP Easy Access Menu.

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Material Master
You are already familiar with the Material Master and the data that is stored from a production
planning and materials management view. In Sales and distribution the material master is
grouped into several views: Basic data, sales and distribution data, purchasing data, and various
further data for engineering/design, accounting, costing, warehouse management, and so on.
Basic data is relevant for all areas and is valid for all organizational units within a client.
Sales: sales organization data is relevant for sales and distribution. It is valid for the respective
sales organization and the distribution channel.
Sales: plant data is also relevant for sales and distribution. It is valid for the respective delivering
plant.
There is additional data for several other areas. This is valid for various organizational units.
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CASE STUDY
Display a Material Master record

Exercise Use the SAP Easy Access Menu to display a Material.
Time 10 min
Task Global Bike Inc. has numerous Materials both in the US and in Germany. Display the
Material - Deluxe Touring Bike (Black).
In order to create a sales order, follow the SAP Easy Access menu path:
Menu path
Logistics Materials Management Material Master Material

Display
1. Double Click
The Display Material (Initial Screen) appears. You need to insert the Material Number for
your Deluxe Touring Bike (Black) in the Material field.
3. Click
to display the various search options.

to select this option.
4. Click
5. Type Deluxe* in the Material description field.
6. Type *###* in the Material field where ### ids you logon.
7. Click
or press <ENTER> to accept the entries and perform the search.
A list of Materials appear which match your search criteria.
8. Double Click Deluxe Touring Bike (Black) to select it and transfer it details.
9. Press <ENTER> to continue.
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The Select Views screen appears.
10. Click Basic Data 1 and Sales Org. Data 1 to select these views.
11. Click
to continue.
The Sales data could be different for different Organisational Units (Plant, Sales Organisation, or
Distribution Channel. Therefore you need to specify which Organisational Units you want to
display the Deluxe Touring Bike (Black) details.
12. Type UE00 (US East Wholesale) in the Sales Org. field.
13. Type WH (wholesale) in the Distr. Channel field.
14. Click
to continue.
The Display Material DXTR1### Finished Product screen appears.
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Notice that Material Group and Weight of the bike are displayed.
15. Click
to display the Sales data.
Notice that the Organisational Unit information is displayed as this information is

Organisational Unit dependent.
Condition Master
A company usually sells a material or service at different price conditions for different channel
distributions. For example, it gives more discounts for same material or service that sold through
wholesale channel than through retail channel (its because the minimal order quantity for
wholesale channel is usually much bigger than retail channel). The Condition Master defines the
prices, surcharges and discounts, freights, and taxes for a Material. This can be dependent on
other data.
16. Click
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to display the various Conditions for this Material.

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CASE STUDY
Notice that the Price (CnTy) for this Material is USD3,000 and this is based on the variables
Sales Organisation (SOrg.), Distribution Channel (DChl) and Material (DXTR1000).
Customer Material Information

The Customer-Material Information (master data) is used to record data for a combination of
certain Customers and Materials. It stores default data when a customer orders a certain
material. You can use the Customer-Material Information record to maintain the following
data:
y Cross-reference from your Customer's Material number to your Material number and the
customer's material description. For example if the customers product code on an purchase
order for a bike is ABC123 it can be matched to your product code for the same bike in the
SAP system
y Specific shipping information for this Customer and Material (such as delivery tolerances,
specifying if the Customer accepts partial deliveries, or the default delivering plant).
Output Master
The Output Master is information that is sent to the Customer using various media, such as mail,
EDI, or fax. Examples include: the printout of a quotation or an order confirmation, order
confirmations using EDI, or invoices by fax. The output can be sent for various sales and
distribution documents (order, delivery, billing document)
In the output master data, you define the transmission medium, the time, and the partner function
for an output type.
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CASE STUDY
Process Overview
Learning Objective Understand and perform an integrated order-to-cash cycle.
Time 120 min
Scenario In order to process a complete order-to-cash process you will take on different roles
within the GBI company, e.g. sales agent, warehouse worker, accounting clerk. Overall, you will
be working in the Sales and Distribution (SD), the Materials Management (MM) and the
Financial Accounting (FI) departments.
You start the sales order process by creating a new customer (The Bike Zone) in
Orlando. Then, you receive an inquiry which you will process into a quotation.
Once the quotation is accepted by the customer you create a sales order
referencing the quotation. As you will have enough bikes in stock, you deliver the
products sold to your customer, create an invoice and receive the payment.
Process
description
The graphic below displays the complete process (17 tasks).
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CASE STUDY
Create a Customer
Task Create a new customer.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a new Customer (The Bike Zone).
In this case study, we will create the master data for a new Customer. Two types of
Customer data are stored about a Customer Sales data and Accounting data. The
Customer Master data is created in three groups, or views General, Accounting, and
Sales. Customers can be created centrally, meaning that all views are generated
concurrently, or responsibility can be distributed so that different personnel in the
accounting and sales areas are responsible for creating and maintaining the data in their
respective views. For this exercise, central creation will be used to enter all of the needed
data to define a new customer.
To create a new customer, follow the menu path:
Customer Create
1.
Double Click
Menu path
to move to the Create Customer: Initial Screen.
The following screen appears
2. Select Sold-to Party for the Account group.
US00
UE00
WH
BI
3. Type US00 (Global Bike Inc) in Company code.
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CASE STUDY
4. Type UE00 (US East) in Sales Organisation.
5. Type WH (Wholesale) in Distribution Channel.
6. Type BI (Bikes) for Division.
7. Click
to accept the entries.
The Create Customer: General Data screen appears

8. Type or Select the following data:
9.
Title
Company
Name:
The Bike Zone
Search Term
###
Street:
214 N Orange Ave
Postal Code:
32804
City:
Orlando
Country
US
Region
FL (Florida)
Transportation zone:
details)
Region East (click
Click the
screen.
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Company
The Bike Zone
###
2144 N
Orange Ave
Orlando, FL
32804
US
Region East
to display further
button on the Application Toolbar to move to this
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CASE STUDY
10. Type 110000 for the Recon. account (reconciliation account)
110000
11. Type 001 in the Sort key field.

12. Click the
001
tab to move to this screen.
13. Type 0001 (Pay immediately) in the Terms of Payment field.
0001
button on the Application Toolbar to move to this
14. Click the

screen.
This screen enables you to enter data relevant to the Sales Organisations and Distribution
Channels of your company. Data that is stored in this area includes, for example, data on
order processing, shipping, and billing
15. Type the following information:
Sales order
Currency:
USD
USD
1
1
Pricing/Statistics
Cust. Pric. Proc.:
1 (standard)
Cust. Stats. Grp:
1 (A material)
16. Click the
17. Type the following data:

Shipping
Delivery Priority
02 (Normal Item)
Shipping Condition 01 (Standard)

Delivery Plant
MI00 (Miami)
02
01
MI00
Order Combination ;
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Partial deliveries
Max.part.deliveries: 3
3
General transportation data

Transportation zone
000000001 (Region East)
Region East
18. Click the
19. Type the following information:

Delivery and payment terms
Incoterms
Dock
FOB (Free on Board) and Origin Shipping
Terms of Payments
0001 (Payable immediately due net)
FOB
001
Accounting
Acct assigmt group
01
01 (Domestic Revenues)
Taxes
Tax Classification
20. Click
0
0
0
0 for all 3 tax categories (Tax exempt)
to save the data.
# What message appears on the Status Bar?
Customer
number
Message
The SAP system will create the master record for the new customer and assign the
customer a unique customer number.
21. Click
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cancel icon to return to the SAP Easy Access screen.
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Create Contact Person for Customer

Task Create a contact person for a customer.
Time 5 min
Short Description Use the SAP Easy Access Menu to create a contact person.
Now that we have created the master data for our new customer, The Bike Zone,
we can create the master data for a contact person. A contact person is an
employee/representative of the new customers company. The contact person
defines a specific person to communicate with when dealing with The Bike Zone.
To create a contact person, follow the menu path:
Contact Person Create
Menu path
If your customer number is not entered by default, then search for your new
customer
1. Click
2.
of the Customer field to display the search screen.
Type ### in the Search Term field.
3. Click
when your customer number is entered.
###
4. Type the following:

VIP:
Department:
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1 (Management)
0002 (Purchasing)
1
0002
02
0002
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Function:
02 (Head of Purchasing)
Gender:
Your Choice
Call frequency:
0002 (Weekly)
Last name:
Your Choice
First name:
Your Choice
Person
5. Click
to save your Contact.
Your contact person will be given a unique number.
Contact
person number
Record the system message:

Message
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Change Customer
Task Change a customer.
Time 5 min
Short Description Use the SAP Easy Access Menu to change a customer.
Now that we have a contact person created for The Bike Zone, we need to
assign that person as a business partner within the customer master. In
addition, a sales person is assigned responsibility for communicating and
working with this customer through the contact person.
To create a new customer, follow the menu path:
Logistics Sales and Distribution Master Data Business
Partner Customer Change Sales and Distribution
Menu path
The Change Customer Initial screen appears with your Customer details.
If the customer number is not entered by default, search for it using the F4
help and the search term ### (your number). Make sure that following
values are entered: UE00 for Sales Organization, WH is entered for
Distribution Channel, and BI for Division.
UE00
WH
BI
1. Press <ENTER> to accept the values and display your Customer

2. Click
on the Sales Area Data screen,
3. Type CP (Contact Person) in the first column under Ship-to

party.
CP
4. Press <TAB> to move to the Number field.

5. Click
to display the search screen.
6. Type your Customer Number if it is not already displayed.

7. Press <ENTER> to commence the search.
The Contact Person you just created is displayed. Ensure the record is
selected.
8. Click
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to transfer the value.

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CASE STUDY
9. Click
to save the changes
10. Click
the cancel icon to return to the SAP Easy Access screen.
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Sales Order Processing

Effective sales order processing connects all activity to customer demand in a series of integrated
processes. The SAP System application component Sales and Distribution makes this sales order
processing possible. The steps in a sales process are then reproduced by electronic documents that
are linked to each other.
The SAP sales and distribution process begins with establishing and maintaining customer
relationships, and ends with invoicing for delivery of goods or service provided to the customer.
Posting the customer incoming payments is part of the SAP System application component
Financial Accounting.
Sales
Sale Orger
Od
Pre Sales Activities
Payment
Invoice
Inventory
Invento
Sourcing
Sourci
Shipping
Shippi
Billing
Pre Sales Activities

The Customer Order Management cycle can begin with Pre-Sales Activities.
These activities evolve around the establishing and maintaining customer
relationships. Typical Pre Sales Activities include:
y
y
y
y
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Creating and tracking customer contacts

y
Mailing campaigns
Answering customer questions received by email.
Inquiries
Quotations.
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Create A Customer Inquiry

Task Create a customer inquiry.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a customer inquiry.
Now we will enter an inquiry from our new customer, The Bike Zone. An
inquiry is a customers request to be provided with a quotation or sales
information without obligation. An inquiry can relate to materials or
services, conditions, and if necessary delivery dates.
Inquiry Details
Customer The Bike Zone
Materials
Quantity
Deluxe Touring Bike (black)
5
Professional Touring Bike (black) 2.
Required Delivery Date: 1 month from todays date
To create an inquiry, follow the menu path:
Logistics Sales and Distribution Sales Inquiry Create
Menu path
This will produce the following screen.
IN
UE00
WH
BI
Your Organisational details should be transferred automatically. If not you

will need to enter them.
1. Type IN in the Inquiry Type field
2. Click
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to continue.
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The Create Inquiry: Overview screen appears. You need to enter the
Customer number for the Bike Zone.
3. Click Sold-to party field to select it.

4. Click
to display the Search screen..
5. Type ### in the Search term field.

6. Type Orlando in the City field.
7. Click
to perform the search.
###
Orlando
8. Double click The Bike Zone to transfer its values.

You now need to complete the remaining Inquiry details
9. Type ### in the PO Number field.
10. Type todays date in the PO date field.
###
todays date
one month from today
11. Type todays date in the Valid from date field.

12. Type a date one month from today in the Valid to date field.
The Bike Zone wants a quote on two products the Deluxe Touring Bike
(black) and the Professional Touring Bike (black).
13. Click the Material field to move the cursor
14. Click
the search icon
15. Click the Sales material by description tab.
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16. Type the following:
Sales Organization
UE00,
Distribution Channel WH
Material
17. Click
*###
to list of bicycles.
18. Double Click Deluxe Touring Bike (black) to select it

19. Type 5 in the Order Quantity field.
20. Repeat for the Professional Touring Bike (black).

21. Type 2 in the Order Quantity
22. Click
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UE00
WH
*###
DXTR1###
5
PRTR1###
2
to determine the price for this order.
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The total price for these 7 bikes to The Bike Zone is 21,400.00, which is
given by the Net value. The Expect.ord.val (6,420.00) is a calculated value
which takes the Net value of the order and multiplies it by the probability
of having an Inquiry from this customer turn into an actual order. To
change this probability:
23. Click the scroll icon to get to the Order probability column (two
columns right of the Net value column).
The Order Probability of 30% is the default value that was set for GBI for
Inquiry documents. The expected order value is then 0.30 x 21,400.00 =
6,420.00. We can change the Order Probability for an Inquiry, which
makes sense as different customer inquiries would have different
probabilities of becoming an actual sales order.
24. Change Order probability from 30 to 75 (%) for each Material
25. Click
75
to update the Inquiry.
Notice the new Expect.ord.val of 16,050.00.

26. Click
to save the Inquiry.
Inquiry number
Your contact person will be given a unique number. Record the system
message:
Message
27. Click
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Create Customer Quotation
Task Create a customer quotation.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a customer quotation.
Following the customers inquiry, a sales quotation is created. A quotation presents

the customer with a legally binding offer for delivering the requested product or
services with certain fixed conditions such as time and price constraints.
The Bike Zone would like a firm quote for the items in the inquiry created before.
We can do this easily by copying the details from the inquiry into the new
quotation. To do this, follow the menu path:
Logistics Sales and Distribution Sales Quotation Create
Menu path
The Create Quotation: Initial Screen appears. Your Organisational details

should be transferred automatically. If not you will need to enter them:
Organizational Data
Sales organization:
UE00 (US East)
Distribution channel:
WH (Wholesale)
Division:
BI (Bikes)
1. Type QT in the Quotation Type field.
QT
As you already created an Inquiry for this customer much of the details you require
for the Quotation already exist in the system. You can create a Quotation with
Reference to another document.
2. Click
on the Application Toolbar.
3. Type your Inquiry number in the Inquiry field or search for it.
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4. Click
to copy information from the Inquiry into the Quotation screen.
5. Type ### as PO number

7. Type a date one month from today in the Valid to date field.
###
todays date
one month
from today
one month
from today
8. Type a date one month from today in the Req. deliv.date field.
9. Click
to continue.
This will produce the following warning.
10. Click
to acknowledge the warning.
Another information message will appear in the Status bar or in a Dialog screen.
11. Click
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to acknowledge this information and continue.

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To encourage The Bike Zone to become a loyal customer, you have been authorized
to give a $50.00 discount on each Deluxe Touring bike, as well as a 5% discount on
the entire order. To add the $50.00
12. Select the Deluxe Touring bike line in the Quotation.
13. Click
the Item conditions icon
You will get a screen that shows the pricing details for your Deluxe Touring Bike.
In SAP, pricing is done using Conditions. The pricing procedure defines which
Condition Types are to be used to calculate the final price. Condition type PR00 is
a gross price condition. To add a discount;
14. Type K004 (material discount) in the CnTY field under Standard
USA/With.
K004
50
15. Type 50 in the corresponding Amount field.
16. Click
to calculate the new price for the 5 Deluxe Touring bikes.
Note that the discount is now applied to the order.

17. Click
to return to the main quotation screen.
You now need to apply a 5% discount to the entire order;

18. Choose Goto Header Conditions
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19. Type RA00 (Net Discount) in the CnTy field below Standard
USA/With.
RA00
5
20. Type 5 in the corresponding Amount field.
21. Click
to continue.
Note that the price does not yet include the 5% discount.
22. Click
activate icon to include the 5% discount.
The 5% discount is now applied. Note that it is applied to the price after the $50
discount per Deluxe Touring bike.
23. Click
to save the new Quotation.
Your Quotation will be given a unique number. Record the system message:
Message
24. Click
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Sales Order Processing

A sales order is an electronic document that records your customer's request for goods or services.
The sales order contains all information to process the customer's request during sales order
processing. Standard orders normally contain:
y
y
y
y
y
Customer information
Shipping information
Pricing for each item
Item quantities
Billing information
Sales Order Structure

A sales document is grouped into three levels: header, item and schedule line. Data is distributed
on these levels as follows:
y Sales document header
The data in the document header is valid for the entire document. This includes, for example,
customer-related data.
y Sales document items
Each item in the sales document contains its own data. This includes, for example, data about
the material and quantities ordered. Each sales document can have several items, while
individual items can be controlled differently. Examples include material item, service item,
free-of-charge item or text item.
y Item schedule lines
Schedule lines contain delivery quantities and delivery dates and are unique to each item.
Every item that has a subsequent outbound delivery in the sales and distribution process must
have at least a schedule line.
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Create Sales Order Referencing a Quotation
Task Create a sales order with reference to a quotation.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a sales order.
The Bike Zone has agreed to the terms and conditions in the quotation, and
wants to order the bikes in the quotation. As a result, we can simplify the
order creation process by copying the quotation into a sales order.
To create a sales order, follow the menu path:
Logistics Sales and Distribution Sales Order Create
Menu path
The Create Sales Order: Initial Screen appears.

Your Organisational details should be transferred automatically. If not you
will need to enter them:
Organizational Data
Sales organization:
UE00 (US EAST)
Distribution channel:
WH (Wholesale)
Division:
01 (Bicycles)
1. Type OR in the Order Type field.
As most of the details relating to Order have been entered in a Quotation

to create the Order based on the Quotation.
2.
Click
OR
on the Application Toolbar.
This will produce the following pop-up search window.
3. Select the Quotation tab if not already selected.

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4. Click the Quotation field to move the cursor.
5. Click
to display the search screen
6. Click the Sales document according to customer PO number

tab.
7. Type ### in the PO number field.
8. Click
A screen similar to below appears;
9. Double Click the your Quotation,

The number for the Quotation will be entered into the Create with
Reference window.
10. Click
to copy the information from the Quotation into the
Sales Order screen.
11. Type ### in the PO number field.

###
todays date
Note that the Req.deliv.date is copied from the Quotation.

13. Click
to save the Sales Order.
Your Sales Order will be given a unique number. Record the system
message:
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Message
14. Click
15. Click
Check Stock Status
Task Check the inventory.
Time 5 min
Short Description Use the SAP Easy Access Menu to check the stock status.
We can check on the inventory level of the bikes in the sales order for The
Bike Zone. To do this, follow the menu path:
Menu path
Logistics Materials Management Inventory Management

Environment Stock Stock Overview
You need to enter the material number for your bikes,

1. Click the Material field top select it.
2. Click
to display the search screen..
3. Click
to display the search options.
4. Click Sales material by description to select it
UE00
WH
*###
5. Type UE00 for Sales Organization.

6. Type WH for Distribution Channel.
7. Type *### in the Material field.
8. Click
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to display the list of Materials.

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CASE STUDY
9. Double Click Deluxe Touring Bike (black) to select it.

10. Type MI00 (Miami) in the Plant field.
11. Click
MI00
(execute icon) to display the stock level.
This report gives stock levels for the DC in Miami.

You can get more detail on the stock of black Deluxe Touring bikes.
12. Click MI00 Miami DC to select it.
13. Click
Detailed Display icon.
This will give you very specific information about the inventory of black
Deluxe Touring bikes.
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CASE STUDY
Note the 5 bikes that are part of the sales order.

14. Click
to close the Detailed Display window.
15. Click
to return to the main screen.
16. Use the search function to enter the Material number for the
Professional Touring bike (black). Click on the execute icon
review the stock level for this bike.
17. Click
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and
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CASE STUDY
Display Sales Order
Task Display a sales order.
Time 10 min
Short Description Use the SAP Easy Access Menu to display a sales order.
With relatively little user input, the sales order for The Bike Zone has been
created. The Display Sales Order transaction provides the opportunity to
review the order in detail.
To display a sales order, follow the menu path:
Logistics Sales and Distribution Sales Order Display
Menu path
To make sure you have the correct sales order number, use the search
function to find it.
1. Click
to display the Sales Order.
The following sales Order items appear.
2. Select the Professional Touring bike Line item.

3. Click
(display availability icon) to explore the stock for this
item in detail.
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CASE STUDY
This screen shows that, in this case, there are actually 80 bikes in stock and
the Sales Order you are displaying will use 2 of these.
Note: your numbers may be different.
4. Click
This screen displays the elements considered when performing the

availability check. For example, Incl. purchase orders is selected, which
means that a Purchase Order will be considered as available stock from
its receipt date onward.
5. Click
to close the pop-up window.
6. Click
to return to the overview screen.
7. Select the Deluxe Touring bike line item

8. Click
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(item conditions icon) to display the following screen.
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CASE STUDY
The details of the price calculation for the Deluxe Touring bike are
displayed. Note the two discounts that were manually applied to this line
item.
9. Click
twice to return to the overview screen.
10. Click
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Start Delivery Process
Task Start the delivery process.
Time 5 min
Short Description You have created a Sales Order based on a Quotation for The Bike Zone
customer. You now need to create a delivery document to initiate the shipping activities for this
sales order. For a delivery document, the system re-determines the stock availability and the
quantity of ordered items are placed in a scheduled for delivery status..
To start the process that will fulfil The Bike Zones order, we need to create a
delivery document. To do this, follow the menu path:
Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Create Single Document With Reference to
Sales Order
The Create Outbound Delivery with Order Reference screen appears.

1. Type MI00 (Miami) in the Shipping Point field.
2. Type a date one week from today (you can use F4 to call up the
calendar window).
If the sales order number is not entered automatically, you can search for you
sales order number using the Sales documents according to customer PO number
tab. Enter your PO number (###).
3. Click
to continue.
4. Select the Deluxe Touring bike Line item.
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CASE STUDY
5. Click
(details icon).
This screen shows that the order has not yet been picked.
6. Click
, to create a Delivery Document.
Your Delivery Document will be given a unique number. Record the

system message:
Message
7. Click
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Check Stock Status

Time 5 min
To check on the inventory for the bikes in the Sales Order for The Bike Zone,
follow the menu path:
The following screen appears:
If the Material and Plant fields are not automatically filled in, click on the
Material field, then click on the search icon . Use the Sales material by
description tab with UE00 for Sales Organization, WH for Distribution Channel
and *### for Material. Pick the black Deluxe Touring bike. Then, enter MI00 in
the Plant field.
1. Click on
UE00
WH
*###
MI00
when the Material and the Plant field are correct

3. Click the
Detailed Display icon
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CASE STUDY
Note that the 5 bikes for The Bike Zone Sales Order are now showed as Schd.
for delivery.
4. Click
5. Click
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CASE STUDY
Pick Materials on Delivery Note

Task Pick the quantity of materials that have been proposed on the delivery note for The Bike
Zone order
Time 5
min
Short Description Use the SAP Easy Access Menu to pick materials
To record the picking of the material, we change the delivery document. To change the
delivery document, follow the menu path:
Outbound Delivery Change Single Document
If the Outbound Delivery Document number is not entered automatically, you can
search for your Delivery Document using the tab Outbound Delivery: Not Posted for
Goods Issue (MI00 for Shipping Point and your customer number for Ship-to party).
1. Click
MI00
Your
customer
number
to continue
The following screen appears
The material delivery quantity is proposed. You now need to indicate the number of
bikes that will be Picked.
2. Click
to display this screen if not already displayed.
You now need to identify where the Materials will be located or Picked from.
3. Type FG00 in the Sloc (Storage Location) field for DXTR1###.
4. Type 5 in the Picked Qty field.
5. Type FG00 in the Sloc (Storage Location) field for PRTR1###.
6. Type 2 in the Picked Qty field.
7. Click
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to save your Picking information.
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CASE STUDY

Message
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Document Flow
The documents in a sales process are linked to each other using the Document Flow.
This enables you to access the history and current status of your sales processes at any
time.
You can display the Document Flow as a list of linked documents. All preceding and
succeeding documents are displayed. This provides an overview of the development
of your sales processes at any time, and you can answer customer questions quickly
and reliably.
To view the overall processing status for your Sales Order you can use Document
Flow. To access the Document Flow you click
. The Document Flow can be
accessed from most transaction screens in the Sales process.
1. Click
to display the Document Flow for your Sales Order.
What is the status of your order?

2. Click
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Post Goods Issue

Task Post a goods issue.
Time 5min
Short Description Post goods issue reduces unrestricted stock to reflect the
inventory shipped an inventory control function. Legal ownership of the goods
changes hands from you to the customer as the goods leave the plant (FOB shipping
point) or when the goods are received by the customer (FOB destination). From an
accounting perspective, both inventory and costs of goods sold are impacted by this
transaction. The system reflects that the materials are no longer available in stock at
the time of post good issue regardless of the shipping terms..
To Post Goods Issue (change the possession of the material from GBI to The Bike
Zone), follow the menu path:
Outbound Delivery Change Single Document
If the Outbound Delivery Document number is not entered automatically, you can
search for your delivery document using the tab Outbound Delivery: Not Posted for
Goods Issue (MI00 for Shipping Point and your customer number for Ship-to
party).
MI00
Your
customer
number
1. Click
The system returns a message indicating a change was made to the delivery note.
Message
2. Click
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Check Stock Status

Time 5 min
To see the impact that the goods issue for the bikes in the sales order for The
Bike Zone has had on the inventory position of GBI, follow the menu path:
If the Material and Plant fields are not automatically filled in, click on the
Material field, then click on the search icon
. Use the Sales material by
description tab with UE00 for Sales Organization, WH for Distribution Channel
and *### for Material. Pick the black Deluxe Touring bike. Then, enter MI00 in
the Plant field.
1. Click on
UE00
WH
*###
MI00
when the Material and the Plant field are correct
Note that the available inventory has changed.

3. Click the
Detailed Display icon
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CASE STUDY
The inventory is reduced from before by the amount that used to appear as Schd.
for delivery.
4. Click
5. Click
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Create Invoice for Customer

When you create a billing document, data is copied from the
sales order and the delivery document to the billing document.
Delivery items as well as order items (for example services) can
be references for the billing document.
The billing document serves several important functions:
It is the sales and distribution document that helps you to generate
invoices.
The billing document serves as a data source for financial accounting (FI)
to help you to monitor and process customer payments.
When you create a billing document, the G/L accounts will normally be updated
automatically.
Task Create a billing document for a customer.
Time 10 min
Short Description You have issued the goods and now they have to be paid for
by the customer. To do this you need to create a billing document for The Bike
Zone relative to the shipment. The billing document permits the recognition of
revenue and its associated accounts receivable.
With the delivery complete, the customer can be invoiced. To do this, follow the
menu path:
Logistics Sales and Distribution Billing Billing Document
Process Billing Due List
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1. Type UE00 (US East) in the Sales Organisation field.
2. Type your customer number in the Sold-To Party field.
If you do not remember your customer number, find it by using the F4 help in
the Sold-To Party field and entering your individual number (###) in the Search
term field and Orlando in the City field. Confirm with . Then, double-click on
the one result row.
3. Click
UE00
Your customer
number
F4
###
Orlando
to display the Bill List.
To print the Invoice:

4. Click the individual billing document to select it.
5. Choose
Goto Header Output
The Output screen appears:

6. Type RD00 (invoice) in the Output field.
7. Select Print output in the Medium field.
8. Click
RD00
Print output
(communication method icon).
9. Type LOCL in the Logical destination field.

10. Select Print immediately.
11. Click
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LOCL
Print immediately
to return to the previous screen.
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CASE STUDY
12. Click
13. Select Send immediately (when saving the application) in the

Dispatch field.
14. Click
twice to return to previous screens.
15. Click
to save your information.
You are returned to the Maintain Billing Due List.
Notice that the billing document line is no longer highlighted.

Message
16. Click
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Display Billing Document and Customer Invoice

Task Display a billing document and a customer invoice.
Time 5 min
Short Description Use the SAP Easy Access Menu to display a billing
document/customer invoice.
The invoice that will be sent to The Bike Zone can be viewed by following the
menu path:
Logistics Sales and Distribution Billing Billing Document
Display
If the Billing Document number is not entered automatically, you can find it
from the document flow in your Sales Order or with the F4 help in this screen.
1. Choose Billing document Issue Output To
2. Select your Invoice

3. Click
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to see a print preview.
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CASE STUDY
Once you have checked the invoice then it needs to be sent to The Bike Zone.
4. Click
5. Click
to close the pop up windos
As SAP is an integrated system it is possible to view the accounting implications

of this sale.
6. Click
to see an overview.
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7. Click
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CASE STUDY
Post Receipt of Customer Payment

Task Post a customer payment receipt.
Time 10 min
Short Description You have sent the Invoice to the customer for the Sales
Order. The Bike Zone has sent payment You now need to Post the receipt of a
payment to settle the billing. A journal entry is made to Accounts Receivable
for Heartland Bike Company and to the bank checking account in the G/L.
After The Bike Zone mails its payment, it needs to be recorded. To do this,
follow the menu path:
Accounting Financial Accounting Accounts Receivable
Document Entry Incoming Payments
1. Type todays date in the Document date field.

2. Type US00 in the Company Code field.
3. Type USD in the Currency Rate field.
4. Type 100000 in the Account field under Bank data.
current date
US00
USD
100000
20092.50
5. Type 20092.50 in the Amount field.
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CASE STUDY
6. Click the Account field under Open Item selection to move the cursor
to this field.
7. Click
to display the search window.
8. Click the Customers (by company code) tab

9. Type ### in the Search term field for your customer (The Bike Zone).
10. Type Orlando in the City field.
11. Click
The following results appear:
12. Double click your customer (The Bike Zone) to select it.
13. Click
to Post the amount.
If the Not assigned field does not show a 0.00 balance, double-click on the
20,092.50 amount to assign the payment to the accounts receivable.
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14. Click
to post the payment

Message
15. Click
The following pop-up window appears:
The data has been saved so there will be no data lost.

16. Click Yes.
Review The Document Flow

Task Review the document flow.
Time 5 min
Short Description Use the SAP Easy Access Menu to review the document
flow.
The document flow tool links all documents that were used in The Bike Zones
sales order. Again, there are many ways to access the document flow tool. One
way is to start by displaying the sales order document.
To display the document flow, follow the menu path:
Logistics Sales and Distribution Sales Order Display
This will produce the following screen.
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CASE STUDY
If your sales order is not displayed, you can search for you sales order number
using the Sales document according to customer PO number tab. Enter your PO
number (###).
1. Choose Environment Display document flow
The Document Flow appears similar to the screen below.
You can review any of the documents in the Sales Order process by double
clicking them.
2. Click
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CASE STUDY
Sales and Distribution Exercise

Exercise To sell bikes to a customer.
Task An existing American customer, Philly Bikes (3###) has contacted
Global Bike Inc to purchase 5 Black Deluxe Touring Bikes. They need them
delivered 3 days form todays date. Use the same organisational units as the
Case study.
You have now completed the Case Study and have a good understanding of the
Sales and Distribution process.
Based on the Case Study complete the necessary data entry to complete the
Sales and Distribution process for this customers requirements.
Good Luck.
SAP AG
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CASE STUDY

Sales and Distribution (SD)

The data entry requirements in the

Before you use this case study, you

In the sales order process, we

In order to successfully work through

Statements, required by law, are created at the company code level.

are stored in different places.

processed by only one shipping point.

The organizational units involved in the scenario are displayed below:

Delivery Structure of GBI

Master Data in Sales and Distribution

Customer Master Data

Sales Area Data

Company Code Data

Valid for all Sales organisation,

Valid for Company code

SD 1: Display Customer Master Record

Logistics Sales and Distribution Master Data Business Partner

to start this transaction..

of the Help window to close the window.

to display search dialog box.

6. Type ### in the Search term field.

or press <ENTER> to accept the entries and perform the

Double Click Philly Bikes to select it.

button on the Application Toolbar to move

to return to the Customer Display: Initial Screen.

19. Double-click NeckaRad with the Customer Number 20(###) to

to display the Customer Details.

"What is the region for this Customer?

to return to the SAP Easy Access Menu.

Display a Material Master record

Logistics Materials Management Material Master Material

to display the various search options.

or press <ENTER> to accept the entries and perform the search.

A list of Materials appear which match your search criteria.

The Display Material DXTR1### Finished Product screen appears.

to display the Sales data.

Notice that the Organisational Unit information is displayed as this information is

to display the various Conditions for this Material.

Customer Material Information

Learning Objective Understand and perform an integrated order-to-cash cycle.

Time 120 min

The graphic below displays the complete process (17 tasks).

to move to the Create Customer: Initial Screen.

The following screen appears

2. Select Sold-to Party for the Account group.

3. Type US00 (Global Bike Inc) in Company code.

to accept the entries.

The Create Customer: General Data screen appears

The Bike Zone

214 N Orange Ave

Region East (click

button on the Application Toolbar to move to this

10. Type 110000 for the Recon. account (reconciliation account)

11. Type 001 in the Sort key field.

tab to move to this screen.

13. Type 0001 (Pay immediately) in the Terms of Payment field.

button on the Application Toolbar to move to this

14. Click the

Cust. Stats. Grp:

16. Click the

tab to move to this screen.

17. Type the following data: