Sales and Distribution

Overview

Product Cycle Manufacturing Process

Convert Production Proposal
Run MPS w/MRP Check Availability Sales Order Entry

Purchase Requisition

Purchase Order

Schedule and Release

Procurement Process
Goods Issue

Goods Receipt

Production Process Completion

Confirmation Quality Inspection Order Settlement Payment to Vendor

Invoice Receipt

Sales Order Process

Receipt of Payment Invoice Customer

Pick Materials

Goods Receipt

Post Goods Issue

Product Cycle For Trading Process

Purchase Requisition Purchase Order

Goods Receipt
Invoice Receipt

Check Availability

Procurement Process
Sales Order Entry

Payment to Vendor Pick Materials Order Settlement Post Goods Issue Goods Receipt

Sales Order Process

Receipt of Payment Invoice Customer

Sales and Distribution (SD) Function

Components

Shipping Transport Sales Support Master c Data Sales Billing Foreign Trade Sales Information System

Sales and Distribution (SD)

Credit Mgmt.

Pre-Sales Activities
Creating & tracking customer contacts Mailing Campaigns Answering customer questions Inquiries Quotations

Sales Order Processing

Standard order normally contain:

Customer and Material Information Pricing Condition for each item Delivery dates and quantities Shipping information Billing information

Inventory Sourcing
In this process in S&D we can:
Check the availability of the ordered goods Publish the demand in material planning Materials planning (MM) organizes and monitors the actual procurement. This includes products that are : - In-house produced or / and - externally produced

Shipping
Shipping Process supports: Creating outbound deliveries Picking Packing Posting the goods issue

Billing
Billing supports:
Creating invoices for products and services Creating credit and debit memos Canceling previously posted billing documents Automatically transferring billing document to accounting.

Payment
Payment is a process that is part of Financial Accounting application module. Payment supports:
Posting payments against invoices. Updating credit limits.

Sales and Distribution Enterprise Structure

Sales Organization
A selling unit Example: 0001

RETAIL STORE

Distribution Channel
Channel through which saleable materials or services reach customers. Example: Retail, Institution, whole sales, Direct sale

Organization Terms Sales and Distribution

Division
A product group Example: Foods, Cosmetics

Sales Area
The combination of sales organization, distribution channel and division

Organization from Sales Perspective

Company code

Sales Org

Sales Org

Distribution

Distribution Channel

Distribution Channel

Distribution Channel

Sales Area
Division

Channel

Division

Division

Division

Division

Division

Organization Terms Sales and Distribution

Sales Offices
A subsidiary of a Sales Area (Sales Region) Example: South India

Sales Group
A subgroup of Sales Office (District) Example: Hyderabad

Organization Terms Sales and Distribution

Sales Person
Individual person assigned to a Sales Group Example: 0001

Integrated Organizational Structure

Client

Plant 1

Plant 3

Plant 2

Company Code 1

Company Code 2
= Storage Locations

Organizational Structure in Shipping

Plant 1

Plant 2

Shipping Point

Shipping Point

Master Data in Sales & Distribution

Customer Master Data Material Master Data Customer Material Information Record Condition Master Data in Pricing

Proposing Order Data from Master Data

Customer Master Business Partners Pricing Tax Determination Payments Outputs Material Master Pricing Tax Determination Weights / volumes Availability checks Delivery Scheduling Plants Master Data

Order
Sold to Party : Ship to Party :

Customer Material Info.

Master Data Output

Item Material Qty. 10 20 M1 M1 10 26

Master Data Incompletion Log

Master Data
Conditions

Customer Master Data

Business Partner : All Customers with whom the company is in contact. Both the accounting department and the sales and distribution department have access to the customer master record. In order to avoid data redundancy, The data for both department is stored in a common master record.

Business Partners in SD
Sold To Party

Personnel

Business Partner Functions

Bill To Party Vendor

Ship To Party

Payer

Structure of Customer Master Records

General data Sales and Distribution Data Company Code Data

Company code data is defined individually for each company code Sales and distribution data is defined individually for each sales area. General data is independent from company code and sales area. It applies to one customer in all company codes and sales area.

Material Master
Product & Services = Material Product and services are combined in SAP under the term material. All information necessary for the management of a material and its stocks, as well as its use, is maintained in the so-called material master record. This includes, for example, data on purchasing, on sales and on storage. Material type: The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material, or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance. HAWA NLAG DIEN VERP Trading Goods Non Stock Material Services Packaging Material

Material Master
Material Master Data

Basic Data1
Relevant for all areas

Sales:Sales Org.

General / Plant Data

Relevant for sales & Dist.

Relevant for sales & Dist.

Purchasing Relevant for materials management

Others.. Relevant for engineering, material planning, accounting..

PRICING
Prices :

In the standard R/3 system,the basis of pricing during sales processing is the gross price of a material.The following kinds of pricing are predefined. Material Price Price-list Price Customer-specific price/User defined Price Material Price : When you create a material price,you specify : A price or a pricing scale for a specific material A combination of sales organization and distribution channel for which the material price is valid. Price-list Price : Depending on your companys pricing policies,you can define price list types by customer groups (wholesale,retail etc.) Customer-specific price/User defined Price : When you create a Customer specific price you specify : Customer Specific material for the customer

Sales Activity
Inquiry Quotation Sales Order Delivery Transport

Invoice

FINANCIAL ACCOUNTING

Business Document Types

THANK YOU
AMIT GUPTA ERP SD CONSULTANT CDAC NOIDA