PRAVEEN SD IMP BOOK.pdf

Sales and Distribution (SD) Overview

MM PP SM

SD

FI

Sales & Distribution

Financial Accounting

CO

Materials Mgmt.

Controlling

Service Management

QM

Quality Management

AM

R/3

Production Planning

PM

Plant Maintenance

Fixed Assets Mgmt.

Integrated Solution Client / Server Open Systems

PS WF Workflow

HR

IS

Human Resources

Industry Solutions

Project System

EC

Enterprise Controlling

Sales & Distribution

• Mechanisms to execute the business processes used in the selling, shipping and billing of products and services • Tightly coupled data flow to the other SAP modules — Integration • Flexible and robust functionality that is tailored through configuration

SD Components

Master Data

Foreign Trade

Sales Support

Sales Info System

Sales

Shipping Transportation

Billing

SD Overview — Master Data

• Detailed information about customers, materials and business partners • Flexible data structures that support the business environment • Specialized master data to support sales order processing

SD Overview — Sales Support

• Provides the functionality to support the staff

involved in business development and customer service processes • Primary functions – Sales Prospects – Contact Persons – Competitors and Competitive Products – Sales Activities – Direct Marketing

SD Overview — Sales

• Primary base for customer • • • •

order management Highly customizable Sophisticated pricing Integrated ATP Integrated credit management

• Sampling of functions – Inquiries & Quotes – Sales Orders – Returns – Contracts & Scheduling Agreements – Consignment – Rush Orders & Cash Sales – Back Orders & Subsequent Deliveries – Credit & Debit Memo Requests

SD Overview — Shipping

• Main functions – Picking, Packing & Inventory management – Generate Shipping Documents • Transportation Management – Routes – Transportation Scheduling • Delivery Scheduling, Returns Deliveries &

Stock Transfer

SD Overview — Billing

• Invoice Generation — automatic or manual • Comprehensive set of billing functions • Linked documents — e.g. invoice & credit

memo • Real-time integration with finance (FI) • Fully integrated and comprehensive pricing

SD Overview — S I S

• Flexible tool that allows one to collect, consolidate, and utilize data from sales and distribution processing • A component of the Logistic Information System (LIS)

Sales & Distribution - Process Flow -

Supply Chain Process

Customer Order

Picking

Goods Issue

Final Payment Accounts Receivable

Billing

SAP Process Steps

Sales

Quotation

Shipping

Delivery Note

Billing

Billing

FI A/R

Post Incoming Payment

Sales Order

Picking

Post Goods Issue

Sales — Inquiry & Quotation

• • • • • •

Support pre-sales processes Are time sensitive Automatic availability check Automatic pricing No impact to FI Can be used as reference documents

Sales — Sales Order

• Core of customer order management • No impact to G/L • Can reference existing documents • Copies key information from master data

• Automated standard functions ... – – – – – – –

availability check MRP updating pricing credit check delivery scheduling export control shipping & route determination

Shipping — Delivery Note

• Initiates the shipping process • Control document for shipping processes — maintains status of each processing step • Re-confirms: availability, credit, foreign trade, delivery scheduling • Facilitates transportation planning

Shipping — Picking & Packing

• Picking: Physical activity of moving goods from the warehouse for further processing (packing, loading) • Packing: Determines packing materials and packing details • Advanced processing includes, e.g. batch mgmt., serial number control

Shipping — Post Goods Issue

• Completes the shipping process • Typically performed when customer takes ownership • Updates inventory • Updates G/L accounts – Cost of goods sold – Inventory

Billing

• Generate customer invoice • Updates FI – Customer account – G/L accounts: revenue, discount, etc.

• Applies relevant pricing • Updates customer credit

Sales & Distribution - Organizational Structures -

Sales Organization

Client 860

Pastime Corporation Company Code CC00 Domestic Sales Sales Organization So00

Europe Sales Organization EURO

Asia Pacific Sales Organization APAC Wholesale Distribution Channel WH

Direct Distribution Channel DI

Wholesale Distribution Channel WH

Retail Distribution Channel RE

Wholesale Distribution Channel WH

Baseball Division BB

Baseball Division BB

Baseball Division BB

Baseball Division BB

Softball Division SB

Softball Division SB

Softball Division SB

Cricket Division SB

Baseball Division BB

Sales Organization

• Sells and distributes products, negotiates terms of sales and is responsible for these business transactions • Critical organization element to the definition of business markets • 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

• Will be used to link together the organizational aspects of sales to customers • 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 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

Internal Sales Organization

Domestic Sales Area Western Sales Office

Eastern Sales Office

Sales Group

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

Sales Person

• Sales Person – Defined in HR — Personnel Admin. – Specifically defines an individual rather than a position (sales rep.) in sales processing

Internal Sales Organization

Domestic Sales Area Western Sales Office Southwest Sales Group Sales Person

Sales Person

Eastern Sales Office Northwest Sales Group

Southeast Sales Group

Northeast Sales Group

Sales Person

Sales Person

Sales Person

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 Sioux Falls PLANT PT00

Freight Dock Shipping Pt SP00

Dock #1 Loading Pt D1

Dock #2 Loading Pt D2

Express Shipping Pt QUIK

Export Shipping Pt EXPT

Dock #3 Loading Pt EX

Dock #2 Loading Pt XP

Sales & Distribution - Master Data -

SD Master Data - Core Elements

Master Data

Pricing

Material Master — Sales: sales org. 1

Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data -General Data

Sales: text Basic Unit of Measure Division Material Group Sales Unit

Purchase order: text MRP 1 - 4 Forecasting

Delivering Plant Cash discount -Tax data

Storage 1 - 2 Warehouse Management 1 - 2

Country

Quality Management

Tax category Tax classification -Quantity stipulations

Min. order quantity Min. delivery quantity Delivery unit

Accounting 1 - 2 Costing 1 - 2

Material Master — General Data

Base Unit of Measure

The Base Unit of Measure is the unit of measure in which stocks are managed within your company.

Division

You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen).

Material Group

A (freely definable) key that’s used to group several materials or services for analysis/reporting as well as search by match code.

Sales Unit

This is the unit of measure in which the material is sold, if different from the base unit of measure.

Delivering Plant

Plant, from which the material is available for sale. This is a default value only.

Cash discount

Indicator used for materials, which allow for a cash discount.

Material Master — Tax data & Quantity stipulations

Tax data Country

Country

Tax category

Taxes, applicable to this material (e.g. Federal, State taxes in US, VAT in GB)

Tax classification

taxable, exempt

Quantity stipulations Min. order quantity

Min. quantity a customer can order (in base unit of measure).

Min. delivery quantity

Min. delivery quantity to a customer.

Delivery unit

Only multiples of this number will be delivered to the customer.

Material Master — Sales: sales org.

Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data

-Grouping terms

Sales: text Purchase order: text

Matl statistics group Material pricing grp

MRP 1 - 4 Forecasting Storage 1 - 2

Volume rebate group Acct assignment grp Commission group Item Category group

Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

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 group A 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)

Commission group

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%).

Item Category group

pricing.

A 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

Material Master — Sales: general/plant

Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing

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

Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

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

General data Base unit

The Base Unit of Measure is the unit of measure in which stocks are managed within your company.

Gross weight

In Base Units of Measure.

Net weight

In Base Units of Measure.

Avail. Check

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 Grp

Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.

Material Master — Packaging material data & General plant parameters

Packaging material data Matl grp ship. matls, or Material group shipping materials

Freely definable group name, which is used to indicate groups of materials with similar shipping materials, such as liquids or bulk, for example.

General plant parameters Negative stock

Check mark indicator, which specifies whether negative stock is allowed at that plant.

Material Master — Sales texts

Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing - Sales texts

Foreign Trade: Import Data

Text specific to the material and in an appropriate language.

Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management Accounting 1 - 2 Costing 1 - 2

Account Groups

• Account group determines which fields are to be used in defining customer master data

Field Status

Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity — create, change, or display

Sales & Distribution - Customer Master -

Customer Master

General Data

Sales & Distribution Data

Company Code Data

Customer Master

• Centralized data for both SD & FI • Segmented into three sections – General data - address & communication – Company code data (FI) - banking and payment information related to FI – Sales data (SD) - pricing, delivery, output

• The sales data is specific to one sales area and is therefore dependent on the sales organization

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 information :

Tax codes, Fiscal address Country code, City code VAT N, Tax jurisdiction code Equalization tax, Sole proprietor Tax on sls/pur.

Reference data / area : Industry:

International Locator No. Transport Zone Express station Train station Location code

Customer Master — Marketing General Data — Marketing

Classification :

Nielsen ID Customer classification Industry Industry codes

Operating figures : Annual sales Number of employees Fiscal year variant Sales prospecting : Legal status

Customer Master — Payment Transactions

General Data — Payment Transactions Bank details

Country Bank Key Account holder Bank Account Control Key Collection

Customer Master — Unloading Point General Data — Unloading points

Unloading point Customer factory calendar Default Unloading Point

Goods receiving hours

Customer Master — Foreign Trade General Data — Foreign trade Country key for export control of customer Table of Denial Orders list (TDO) Special Designated Nationals list (SDN) Diversion High Risk Profile list (DHRP) Usage and Classification

Customer Master — Contact Persons

General Data — Contact persons

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

Customer Master — Accounting Information

Company Code Data Accounting Information

Accounting info

Reconciliation Account Sort key Head office

Interest calculation

Interest indicator Interest calculation frequency Last key date

Reference data

Buying group

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

Correspondence :

Account number at customer Customer user

Payment notices to :

Customer Sales Accounting Legal

Customer Master — Insurance

Company Code Data Insurance

Export credit insurance : Policy number Institution number Amount insured Valid until Lead months Deductible

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 :

Account assignment group

Taxes:

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 -

Business Partners

• Defines all of the parties involved in a business transaction and differentiates between their roles — customer, carrier, employees, customer contact, etc. • Through customizing the system automatically assigns partners to the customer master and to transactions Sold-to

Ship-to

Bill-to

Payer

Business Partners

• The system creates these four business partners by default. All four are required. • All four may be the same or may be different. • Since these are automatically assigned partners you may need to add additional partners to carry out your business transactions. Sold-to

Ship-to

Bill-to

Payer

Business partners — Sold-to

• Customer that orders the goods • Can perform all primary partner functions — sold-to, ship-to, payer, bill-to • Primary type of business partner • Cannot be linked to other sold-to partners

Sold-to Ship-to

Bill-to Payer

Business partners — Ship-to

• Party that receives the goods • Can be created as an independent partner and linked to one or more sold-to partners

Sold-to Ship-to

Bill-to Payer

Business partners — Bill-to

• Party that receives the invoice • Can be created as an independent partner and linked to one or more sold-to partners

Sold-to Ship-to

Bill-to Payer

Business partners — Payer

• Party that sends the payment • Can be created as an independent partner and linked to one or more sold-to partners

Sold-to Ship-to

Bill-to Payer

Business Partners — Example

Sold-to

Sold-to

Ship-to

Bill-to

Ship-to

Ship-to

Payer

Ship-to

Ship-to

Ship-to

Sales & Distribution - Pricing -

Pricing • • • •

“World-class” functionality Highly customizable & extendible One of the most complex features of SAP Used to determine the net price for a material or an order

Pricing Process

• Standard pricing calculates the gross price, then applies discounts, surcharges and applicable taxes to arrive at the final price final price = gross price - discounts + surcharges + taxes

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

Pricing Components

• Pricing is based on a matrix of predefined and custom elements • Delivered element groups (a.k.a. conditions) – Prices – Discounts & Surcharges – Freight – Taxes

Pricing Procedure

• In short, the mechanism used to arrive at the final price • Considers all of the applicable pricing conditions, e.g. material price, customer discount • Is assigned by: sales area, sold-to party and sales document type (e.g. sales order)

Pricing Procedure

• The pricing procedure uses what SAP calls “the condition technique”. • The pricing condition technique starts with the: – – – – –

Pricing Procedure which looks at Conditions which use Access Sequences which accesses Condition tables which point to A price, discount or other condition ($)

R/3 Pricing Process SALES DOC. ITEM

DETERMINE PRICING PROCEDURE FOR ITEM

DETERMINE ACCESS SEQUENCE FOR EVERY CONDITION TYPE IN PRICING PROCEDURE

ACCESS THE CONDITION RECORDS AND DETERMINE PRICE

PRICE THE ITEM

SALES AREA & DOCUMENT TYPE & SOLD-TO

CONDITION TYPE AND ACCESS SEQUENCE ARE LINKED IN TABLE

CUSTOMER/MAT’L OR PRICE LIST/MAT’L OR MATERIAL

--$9.25 N/A

UNIFORM

SALES DOC. SOLD PRICING AREA TYPE TO PROCEDURE

KEY

CONDITION TYPE

ACCESS SEQUENCE PR00 KI00

TX00 FR00

US01

A

1

USSTD

PR00 KI00

US01

B

1

USALT

UK01

A

1

UKSTD

TX00 FR00

UK02

A

1

UKSTD

PRICING CONDITION CONDITION PROCEDURE TYPE USSTD

PRICE ELEMENT CONTROL PARAMETERS UPPER/LOWER LIMITS

USALT

STOPS LOOKING AFTER FINDING FIRST VALUE

LOOK FOR CONDITION ACCESS OR RECORDS IN THIS ORDER SEQUENCE DER OF CONDITION TABLES PR00

01

CUSTOMER/MATERIAL

02

PRICE LIST TYPE/MAT’L

03

MATERIAL

01

CUSTOMER/MATERIAL

PR00

PRICE

KI00

DISCOUNT

TX00

TAXES

02

PRICE LIST TYPE/MAT’L

FR00

FREIGHT

03

MATERIAL

PR00

PRICE

KI00

ETC. KI01

DISCOUNT

ETC.

Price Agreements

• Simple price agreements – – – –

product customer customer & material customer group & material

• Detailed price agreements – pricing scales – rebates – customer expected price

Specialized Master Data

• Customer Material Info. Record • Item Proposal • Listing & Exclusion • Product Substitution

Customer/Material Info. Record

• Defines a customer alias for a material & description, for example: 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

Item Proposal • Used to define frequently ordered combinations or special assortments of products and quantities • Either products or products with quantities can be selected during order entry • An item proposal can be defined for a customer via the customer master record

Material Listing & Exclusion

• Used to control what products are available for a customer or group • Material Listing — defines products that can be sold to a customer • Material Exclusion — defines products that cannot be sold to a customer

Product Substitution Material Determination

• Enables automatic or manual substitution of materials during sales order processing • Examples: – substitute a standard product with a promotional material – substitute based on a customer preference – substitute based on selection list (manual)

Customizing For Transactions Shipping Functions

• Shipping Point Determination – The shipping point is determined for each line item based on the shipping point determination – shipping point = shipping condition + loading group + delivering plant

Customizing For Transactions Shipping Functions

• Route Definition – Route to be traveled and the transit time – Generic routes can be used to simply define transit time

• Route Determination Proposed route = shipping point + destination country + transportation zone + shipping condition

Sales & Distribution - Transactions -

Business Document Types Returns

Inquiry Quotation Sales Order

Contract Consignment Scheduling Agreement

Cash Sale Returnable Packaging

Rush Order Debit Memo

Credit Memo

Order Processing Functionality

• • • • • • • •

Delivery scheduling Availability check Transfer of requirements to MRP Pricing Credit check Shipping point & route determination Foreign trade & license processing Document flow

Delivery Scheduling

• Automatic scheduling of essential shipping activities ... Calculated using defined activity times ... Resulting in scheduled activity dates • Determined using backward and forward scheduling rules

Delivery Scheduling

• Structure of sales documents Header Line item # 1

Schedule line # 1 Schedule line # 2 Line Item # 2 Schedule line # 1

Delivery Scheduling — Terminology

• Transportation lead time — time required to schedule transportation • Pick/Pack time — time required for picking and packing • Load time — time required to load • Transit time — time required to transport goods from shipping point to ship-to

Backward Scheduling

25 Order Date

25th

Material Availability

26th

Transp. Sched.

Loading

27th

Goods Issue

28th

Transp. Sched. Time (1 day)

Pick & Pack Time (2 days)

Requested Delv. Date

29th

31st

Loading Time

Transit Time

(1 day)

(2 days)

Forward Scheduling

27 Material Availability 26th

Order Date 27th

Transp. Sched. 27th

Goods Issue 29th

Loading 28th

Transp. Sched. Time

Loading Time

Transit Time

(1 day)

(2 days)

(1 day)

Pick & Pack Time (2 days)

Requested Delv. Date 31st

1

New Delv. Date

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

Availability Check

• In determining the material availability date the system can include specific stocks if selected, such as: – Safety stock – Stock in transfer – Quality inspection stock – Blocked stock – Restricted use stock

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 Point & Route Determination

• A shipping point is determined for each line item — shipping point determination • A delivery can only be processed from one shipping point • Routes - route to be traveled & transit time are determined using customized rules • Routes can be used to simply define transit time

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

Order Delivery

Delivery Delivery Order Combination

Order

Delivery

Delivery Partial Delivery

Complete Delivery

Shipping Overview

• Delivery creation activities – checks order and materials to determine if a delivery is possible — delivery block, incompleteness – confirms availability – confirms export/foreign trade requirements – determines total weight & volume

Shipping Overview

• Delivery creation activities – generates packing proposal – considers partial deliveries – updates route assignment – assigns picking location – determines batches – updates sales order — status, delivery qty

Deliveries & Delivery Notes

• The Delivery Note – 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

Delivery Due List

• • • •

Produces a work-list of deliveries Encompasses deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries

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 customer’s 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.

Sales Org.

Cust Acct. Grp.

Account G/L Key Account

KOFI

CHRT

SOxx

01

ERL

610000

From Table

From Sales Doc.

From Sales Doc.

From Customer Master

From Pricing Proc

From Table

Billing Methods

Separate invoice per delivery

Order

Delivery

Invoice

Delivery

Invoice

Delivery Collective Invoice Invoice Split

Order Order

Order

Delivery

Invoice

Delivery

Delivery

Invoice Invoice

Billing Documents

• Explicitly specify documents • Billing due list — builds a worklist of invoices that should be generated • Automatic posting to FI

Billing Documents

General ledger

Revenue 2000

Customer 2000

A/R recon. 2000

Billing Plans

• Periodic — total amount for a planned billing period • Milestone — distributing the total amount over multiple billing dates - typically used with the project system (PS) • Installment — evenly proportioned amounts and defined payment dates • Resource related — consumed resources such as service or consulting

SD Milestone Billing

Sales Order

Billing Plan

Sold-to : QAZ Industries Material : 546-dk1 Generator

Billing date 11/20/96 01/20/97 04/20/97 05/20/97 06/20/97

Delivery Date : 06/20/97 Price : $300,000

Description

%

Value

Contract Assembly Operational Acceptance Final invoice

10 40 40 10 --

30,000 120,000 120,000 30,000 --

Billing Milestone block x x x x x x x

Billing status x x

Outline Agreements • Contracts • Schedule Agreements

Contracts

• Defined quantities and validity period for a customer • The contract is fulfilled by orders placed against the contract - release orders • Contracts are automatically updated through release order processing • Pricing can be assigned to a contract

Contracts

Contract Target Qty: 900 Order Qty: 700 .. . Contract Target Qty: 900 Order Qty: 750

Release Order Order Qty: 200

Release Order Order Qty: 150

Scheduling Agreements

• Defines specific product quantities and delivery dates for a customer • Schedule lines and processed through standard delivery processing • Availability check is performed during creation and quantities are passed to MRP • System automatically updates delivered quantities

Scheduling Agreements

Scheduling Agreement Date 05/15 06/15 07/15 08/15

Qty 100 100 200 300

Delivery 5/10 100

Delivery 6/10 100 Delivery 7/10 200 Delivery 8/10 300

Backorders Backorder Processing Rescheduling

Backorders

• Backorder processing – determines which orders have unconfirmed quantities by customer or material – sort the orders according to priority – assign available stock to outstanding orders or reassign confirmed quantities to high-profile orders

Backorders

• Rescheduling – updates the orders with the results of the availability check – can be used to manage the distribution of available inventory when demand is greater than supply

• Best if run in batch mode, rescheduling can be very time consuming

Customer Returns

Return Order Goods Receipt Quality Inspection Credit Memo

Customer Returns

1

2

3

Order

Return

Delivery

Invoice

Returns Delivery

Return to Inventory

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 & Text

Communication — Output

Bar Coded Documents

Printed Documents

FAX SAP Document

Email

EDI Workflow

Communication — Output

• Output — traditional forms or electronic communications produced for internal or external partners • Assigned to business partners & sales documents • Definable media — EDI, fax, print • Highly customizable — Sapscript

Communication — Text

• Texts are used for internal and external communication • Created for business partners, materials, header or item level of sales documents — order, delivery, billing, picking lists

SIS Overview

• Flexible information system designed to support business planning, forecasting and reporting • Pre-defined catalog of performance measures and reports • On-demand access to reports and exceptions • Data maintained in a separate database

Logistics Information System

• • • • • •

Inventory Management Purchasing Sales and Distribution Production Plant Maintenance Quality Management

Inventory Information System Standard Analysis

• • • • •

Material Plant Storage Location MRP Controller Material Groupings

Purchasing Information System Standard Analysis

• • • • •

Material Vendor Material Group Purchasing Group Purchasing Documents

Sales Information System Standard Analysis

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

Production Information System Standard Analysis

• • • •

Product Group Material Work Center Production Resources and Tools

Reporting Tools

• • • • • •

Value display - absolute or percentage Top N - top 10, top 100, etc. Sorted - ascending or descending ABC Classification Graphics - 2D, 3D