WELCOME TO THE WORLD OF SAP R/3(SALES & DISTRIBUTION)

Sales & Distribution

Sales & Distribution (SD) is one of the core and most-used modules of SAP R/3 products beside Financial & Controlling (FICO), Material Management (MM), and Production Planning (PP) modules. The main areas covered by SD module are: Pre-sales activities, including Inquiry and Quotation creation. Sales Order processing, including Sales Order (SO) creation. Shipping, including Outbound Delivery document creation. Billing, including Billing document and invoice creation.

The relationship between SD and MM, FI, PP, and WM modules

SD module is closely related and has integration with other modules, such as FI, CO, MM, PP, CS and Warehouse Management (WM).

Sales Organization
Client 860 Pastime Corporation Company Code CC00 Domestic Sales Sales Organization So00 Direct Distribution Channel DI Baseball Division BB Softball Division SB Wholesale Distribution Channel WH Baseball Division BB Softball Division SB Retail Distribution Channel RE Baseball Division BB Softball Division SB Europe Sales Organization EURO Wholesale Distribution Channel WH Baseball Division BB Cricket Division SB Asia Pacific Sales Organization APAC Wholesale Distribution Channel WH Baseball Division BB

Sales Organization
The highest level organizational unit Sells and distributes products, negotiates terms of sales and is responsible for these business transactions A business transaction is linked to one Sales Organization

Distribution Channel
Identifies how products and services reach the customer Can be assigned to one or more Sales Organizations

Division
Often times used to define product line distribution Organization level to which customer specific information and requirements are maintained e.g. pricing, partial delivery Assigned to one or more Sales Organizations

Sales Area
Organizational element comprised of:
Sales Organization Distribution Channel Division

Used for statistical analysis

Sales Area
Domestic Sales Sales Organization SO00 Direct Distribution Channel DI Baseball Division BB Softball Division SB Wholesale Distribution Channel WH Baseball Division BB Softball Division SB Retail Distribution Channel RE Baseball Division BB Softball Division SB

Sales Office
Typically defines a territory or market area Linked to one or more Sales Areas Optional organization structure

Sales Group
Sales Group
Sub-division of a sales office, territory or market

Shipping Point & Loading Point

Shipping Point
Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point

Loading Point
A subdivision of the shipping point used for more specialized handling

Shipping Organization
Sio x a N

r ight o Shipping t S

xpr Shipping t K

xport Shipping t X

o #1 oa ing t 1

o #2 oa ing t 2

o # oa ing t X

o #2 oa ing t X

Sales & Distribution

- Master Data -

SD Master Data - Core Elements

Master Data

Pricing

Material Master Sales: sales org. 1

-General Data
Basic Data -

Basic Unit of Measure Division Material Group Sales Unit Delivering Plant Cash discount -Tax data Country Tax category Tax classification -Quantity stipulations Min. order quantity Min. delivery quantity Delivery unit

Classification Sales: sales org. -

Sales: general/plant Purchasing Foreign Trade: Import Data Sales: te t Purchase order: te t MRP -4

Forecasting Storage -

Warehouse Management Quality Management Accounting Costing -

Material Master General Data

Base Unit of Measure Division Material Group The Base Unit of Measure is the unit of measure in which stocks are managed within your company. You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). A (freely definable) key thats used to group several materials or services for analysis/reporting as well as search by match code. This is the unit of measure in which the material is sold, if different from the base unit of measure. Plant, from which the material is available for sale. This is a default value only. Indicator used for materials, which allow for a cash discount.

Sales Unit Delivering Plant Cash discount

Material Master Tax data & Quantity stipulations

Tax data Country Tax category Tax classification Country Taxes, applicable to this material (e.g. Federal, State taxes in US, VAT in GB) taxable, exempt

Quantity stipulations Min. order quantity Min. delivery quantity Delivery unit Min. quantity a customer can order (in base unit of measure). Min. delivery quantity to a customer. Only multiples of this number will be delivered to the customer.

Material Master Grouping terms

Matl statistics group Material pricing grp Helps to determine which data the system updates in the Logistics Information System (LIS). A way to group materials with similar pricing conditions.

Volume rebate groupA material can be assigned to a volume rebate group (e.g. Low Rebate, High Rebate) if the material qualifies for rebate. Acct assignment grp A grouping of materials with the same accounting requirements (used to determine revenue and sales deduction accounts) Several materials can be assigned to the same commission group, if the commission sharing between representatives is the same for these materials (e.g. Rep.A: 6%, Rep.B: 10%, Rep C: 12%).

Commission group

Item Category groupA grouping of materials, that helps the system determine the Item Category. Item Category determines how a specific item is processed by system. E.g. a text item is not relevant for pricing.

Material Master Sales: general/plant

Basic Data Classification

General data Base unit Gross weight Net weight Avail. Check Shipping data (times in days) Trans. Grp LoadingGrp Packaging material data Matl grp ship. matls General plant parameters Negative stock

Sales: sales org. Sales: general/plant Purchasing

Foreign Trade: Import Data Sales te t Purchase order: te t MRP -4

Forecasting Storage -

Warehouse Management Quality Management Accounting Costing -

Material Master General data & Shipping data (times in days)

General data Base unit Gross weight Net weight Avail. Check The Base Unit of Measure is the unit of measure in which stocks are managed within your company. In Base Units of Measure. In Base Units of Measure. Tells the system when to do an availability check, as well as which MRP elements (such as purchase orders, reservations) to include in the check.

Shipping data (times in days) Trans. Grp Transportation groups are groups of materials that have the same transportation requirements. For example, all goods that need refrigeration. Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.

Loading Grp

Sales & Distribution

- Customer Master -

Customer Master
General Data

Sales & Distribution Data

Company Code Data

Customer Master by Sales Area

Customer Sales Organization Distribution Channel Division

Customer Master Address & Communication

General Data Address
Customer Name Search Term Street address, City, Postal code, Country Language

General Data Communication

Telephone, Fax, Data numbers

Customer Master Control Data

General data Control data
Account control : Vendor, Authorization Trading partner, Group key Tax codes, Fiscal address Country code, City code VAT N, Tax jurisdiction code Equalization tax, Sole proprietor Tax on sls/pur. International Locator No. Transport Zone Express station Train station Location code

Tax information :

Reference data / area : Industry:

Customer Master Payment Transactions

General Data Payment Transactions

Bank details

Country Bank Key Account holder Bank Account Control Key Collection

Customer Master Contact Persons

General Data Contact persons
Name Telephone number Department First name Form of address (e.g. Mr., Ms.) Function

Customer Master Payment Transactions Company Code Data

Payment Transactions

Payment data: Payment terms Tolerance group Automatic Payment Transactions: Payment methods Alternative payer Lockbox

Customer Master Correspondence

Company Code Data Correspondence
Dunning data : Dunning procedure Dunning recipient Account number at customer Customer user

Correspondence :

Payment notices to :

Customer Sales Accounting Legal

Customer Master Sales

Sales Data Sales area

Sales order : Sales district Sales office Sales group Order probability Item proposal Account at customer Pricing / Statistics:

Price group Customer pricing procedure Price list type Customer statistical group

Customer Master Shipping

S & D Data Shipping

Shipping :

Delivery priority Shipping conditions Delivering plant Order combination Batch split allowed

Partial Delivery: Complete delivery Partial delivery of item Maximum part deliveries

Customer Master Billing

S&D Data Billing

Billing section : Manual invoice maint. Rebate Pricing Billing schedule Invoice list schedule Delivery and payment terms : Incoterms Payment terms Accounting : Taxes: Account assignment group Tax requirements for the customer

Customer Master Partner Functions

S&D Data Partner functions

The different partners are assigned SP BP PY SH Sold-to-party Bill-to-party Payer Ship-to-party additional Partner function(s)

Assigning Additional Partners

Siesta Baseball League - Vera Cruz, NM Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Bill-to Payer Ship-to Ship-to : 10018 Siesta Baseball League - Vera Cruz, NM Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Payer Ship-to Ship-to : 10018 Bill-to Ship-to : 10249 - Bakersfield, CA

Ship-to

Sales & Distribution

- Business Partners -

Sales & Distribution

- Pricing -

Pricing Process
Standard pricing calculates the gross price, then applies discounts, surcharges and applicable ta es to arrive at the final price
final price = gross price - discounts + surcharges + ta es

Cost-plus pricing determines the base cost and applies the appropriate discounts, surcharges and ta es
final price = cost - discounts + surcharges + ta es

Pricing Components
Pricing is based on a matri of predefined and custom elements Delivered element groups (a.k.a. conditions)
Prices Discounts & Surcharges Freight Ta es

Customer/Material Info. Record

Defines a customer alias for a material & description, for e ample:
Material : Glove Customer : Pastime Glove

Can further define attributes of the material, shipping and partial delivery information specific to the product and customer Referenced in the sales order using the Ordering Party overview

Sales & Distribution

- Transactions -

Business Document Types

Inquiry Quotation Sales Order Cash Sale Rush Order Debit Memo Returnable Packaging Credit Memo Consignment Scheduling Agreement Returns Contract

Availability Check
Determines the material availability date Considers inward and outward movement of inventory customizable Influences partial deliveries by
proposing a quantity that can be delivered on the requested date (complete delivery) determines the earliest date for full delivery determines the number and dates for partial deliveries to fulfill the order

Transfer of Requirements to MRP

Ordered quantities are passed to MRP (MM) Controlled by the schedule line category Blocking of documents can affect requirements passing delivery block

Credit Check
Efficient means to implement credit management Integrated with FI via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting

Shipping

Shipping Overview
Comprehensive functionality to support picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management

Shipping Overview
Order Order Order Delivery Order Combination Order Delivery Delivery Delivery Partial Delivery Complete Delivery Delivery Order

Shipping Overview
Delivery creation activities
checks order and materials to determine if a delivery is possible delivery block, incompleteness confirms availability confirms e port/foreign trade requirements determines total weight & volume

Deliveries & Delivery otes

The Delivery ote
Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities

Picking Delivery Note Packing Status Loading Post Goods Issue

Picking
Quantities based on delivery Assigned date when picking should begin Automated storage location assignment Supports serial number tracking and batch management Integrated with Warehouse Management (WM)

Packing
Identifies which packaging is to be used for specified products Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced

Goods Issue
Event that indicates the change in ownership of the products Reduces inventory Automatically updates the G/L accounts Ends the shipping process and prevents changes to the shipping documents

Goods Issue
Inventory General ledger 750 Cost of goods sold 750

Billing Overview
Automated invoicing based on sales orders and/or deliveries Functionality for processing credit/debit memos and rebates Integration with FI & CO-PA Updates customers credit data Can create pro forma invoices

Automatic Account Assignment

Defines the G/L accounts that billing entries are posted to revenue, deduction, freight charges
Application Condition Chart of Type Accounts V From Sales Doc. KOFI From Table CHRT From Sales Doc. Sales Org. SOxx From Sales Doc. Cust Acct. Grp. 01 From Customer Master Account G/L Account Key ERL From Pricing Proc 610000 From Table

Billing Methods
Separate invoice per delivery Order Delivery Delivery Delivery Collective Invoice Invoice Split Order Order Order Delivery Delivery Delivery Invoice Invoice Invoice Invoice Invoice

Billing Documents
General ledger Revenue 2000 Customer 2000 A/R recon. 2000

Customer Returns

Return Order Goods Receipt Quality Inspection Credit Memo

Customer Returns
1 Order Delivery Returns Delivery Invoice
Return to Inventory

Return

Credit Memo

Customer Returns
Returns document
Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price

Return delivery
Issues a goods receipt to place material into inventory

Customer Returns
Credit memo
Billing block must be cleared from Return Posts to FI Can be processed in batch (background) Can be processed collectively (grouped)

Output & Te t

Communication Output
Bar Coded Documents Printed Documents

FAX Email SAP Document EDI Workflow

Logistics Information System

Inventory Management Purchasing Sales and Distribution Production Plant Maintenance Quality Management

Sales Information System Standard Analysis

5 Pre-defined drill-down reports
Customer Material Sales Organization Shipping Point SD Documents