sap sd note.docx

SAP SD Notes. ==================================== 1.5.1. Sales and Distribution Processes ==================================== Pricing in Sales Cycle: 1. Material Price - base price, value of materials calculated by Material Price & quantity of material sold. 2. Discounts - reductions on Material Price. 3. Freight - Charges paid by customer for transportation. 4. Taxes - charged to customer, paid to the Tax authorities. Activity of Sales and Distribution: 1. Creating Inquiry 2. Creating Quotation 3. Creating Sales Order 4. Creating and Processing Delivery 5. Picking 6. Packing 7. Posting Goods Issue. 8. Billing SD Function Structure: - organization can have multiple distribution channels. - central sales org > geographically > country/regions. - region > Regional Office - state > State Sales Office

Order Fulfillment (SD) 1. SALES (Sales Dept) - pre sales activity (potential customer): 1. inquiry (IN)

2. quotation (QT) - sales activity : Sales Order (OR) 2. SHIPPING (Logistic Dept) LF - outbound delivery. 1. Delivery document (LF) 2.

Picking : pick correct material, quantity, plant.

3.

Packing : pack materials.

4.

PGI : Post Goods Issue.

5.

Transportation : 3rd party.

3. BILLING (Finance Dept)  Invoice document. 

Pay > Account Receivable (FI)

4. CUSTOMER COMPLAINT.  Return. 5. SPECIAL PROCESS  Rush Sales 

3rd party



Consignment



Cash sales.



Free goods



Make to order

==================================== 1.5.2. SD Enterprise Structure ==================================== SALES Org Unit: 1. Client 2.

Company / Company Code

3. Sales Org - Organization reporting to corporate or groups of management that sells the products from various channels of one or more division. 4. Distribution Channel - organization element, which represents the way in which goods or services are distributed to the customers. 5.

Division - group material or services

6.

Sales Area

7.

Sales Office - location sales activity.

8.

Sales Group - internal, domestic, external.

9.

Sales Employee

10. Credit Control Area - customer credit limit can be given and monitored in SAP. This can be used for one or multiple company codes.

DISTRIBUTION Org Unit: 1. Plant - where material will be shipped out. location from where materials and services are delivered… act like distribution center. 2.

Storage Location - place where all the materials are being stored in a plant.

3. Shipping Point - ship the products to customer; each plant can have many shipping points. 4.

Loading Point - pick and pack. place in a shipping point where goods are loaded.

5. Transportation Planning Point - responsible for planning and processing transportation activities. Distribution Chain:  Sales Org 

Distribution Channel

Sales Area:  Sales Org 

Distribution Channel



Division

Sales Order controlled by: 1. header - document type (customer) 2.

item - item category (material)

3.

schedule line - schedule line category (availability)

General FI and MM Client Mandatory Company Code Mandatory

Plant Mandatory

Storage Location Mandatory SALES Sales Org Mandatory Distribution Channel Division Distribution Chain

1 1 1 1 1 1

1 1 1 M M M

1 1 1 1 1 1

1 1 M M M 1

Company Code Plant Storage Location Plant Sales Org Transportation Planning Point Credit Control Area Company Code Storage Location Distribution Chain Shipment Point Plant

1 1 1 1 1 1 1

1 M M M M M M

Company Code Distribution Channel Division Sales Org Division Sales Org Plant

Sales Area

1 1 1 1 1 1 1

Sales Office Sales Group

M 1 M M M M 1

Sales Office Credit Control Area Sales Area Sales Group Sales Office Sales Employee Sales Group

Sales Employee DISTRIBUTION / DELIVERY Shipping Point 1 M Plant 1 M Loading Pont Loading Point 1 M Shipping Point DIST FOR SHIPMENT TRANSPORTATION Transportation Planning 1 1 Company Code Point CREDIT MANAGEMENT (under FI) Credit Control Area 1 1 Company Code 1 M Sales Area

==================================== 1.5.3. SD Master Data ==================================== CUSTOMER MASTER DATA (2) Control by: Customer Account Group View: 1. General Data 2.

Company Code Data

3.

Sales Area Data: Currency, Partner Function.

MATERIAL MASTER DATA (3) Control by: Material Type View: Enterprise Structure 1. Plant 2.

Sales Org

3.

Distribution Channel

CUSTOMER MATERIAL INFO RECORD (1) VD51 Create VD52 Change VD53 Display CONDITION = Pricing auto to select price for particular customer pricing determination

PRINT OUTPUT Controller: Output Type Partner function: 1. Sold to Party 2.

Ship to Party

3.

Bill to Party

4.

Payer

5.

Sales Employee - Contact Persons with the Business Partner

Material with the same basic attributes are grouped together and assigned to amaterial type. This allows managing different materials in a uniform manner in accordance with company’s requirements. Few common material types in SAP are: 

ROH – Raw Materials



HAWA – Trading good



FERT – Finished product



DIEN - Service

4 views of material master record? 1.

Sales Org. data 1 & 2

2.

Sales: General / Plant

3.

MRP 1, 2, 3 & 4.

4.

Accounting.

A bill of materials (sometimes bill of material or BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture an end product. No physical dimension is described in a BOM, however the rough outline should include.

==================================== 1.5.4. SD Controlling Documents ==================================== Structure of Sales Document: 1. Header level 2.

Item level

3.

Schedule line

Origin Data: where data is coming from, into SD. Example from: 1. Customer master 2.

Material master

3.

Sales documents

4.

Cust material info record

Preceding Document: source document eg quotation to Sales Order. Succeeding Document: document created with reference of source doc. Item Category: controls sales document flow and impact schedule line category. Control: Delivery, Pricing and Billing. Schedule line category: control material requirement planning and shipment execution. Shipping activities: 1. Picking 2.

Packing

3.

Shipment

4.

Good Issue

Below are data can be maintained in Sales document types:

Sales Documents Pre Sales

Document Type with Description IN – Inquiry QT – Quotation FD – Free of Charge Delivery Sales Order OR – Standard Order BV – Cash Sales RO – Rush Order KB – Consignment Fill Up KE – Consignment Issue KR – Consignment Returns KA – Consignment Pick Up Outline Agreements CQ – Quantity Contracts WK1/WK2 – Value Contract WV – Service Contracts MV – Rental Contracts GK – Master Contracts DS – Scheduling Agreement Complaint CR – Credit Memo Request DR – Debit Memo Request RE – Returns SDF – Subsequent Free of Charge Delivery RK – Invoice Correction Request Delivery Document LF – Outbound Delivery Types LO – Outbound Delivery without reference LR – Returns Delivery NL – Replenishment Delivery Billing Document F2 – Invoice

F8 – Pro forma Invoice G2 – Credit Memo L2 – Debit Memo RE - Returns

Types

==================================== 1.5.5. SD Pricing ==================================== Condition Technique

Pricing elements: 1. Material price 2.

Taxes

3.

Discounts

4.

Freight

condition technique - used in verious function like pricing, text determination, output determination and material determination. SAP to find a choice among number of alternatives. condition table - combination of fieldswhich identifies individual condition records. Access sequence - defines the search strategy to locate proper condition record. Condition records - master data, maintained the prices for customer or material. Pricing procedure - condition types placed in proper sequence.

==================================== 1.5.6. SD Processes ==================================== Automatic function: 1. Pricing 2.

Availability Check

3.

Transferring requirement to material planning (MRP)

4.

Delivery schedule

5.

Shipping point and route determination

6.

Checking credit limits.

Consists of: 1.

Inquiry - potential customer.

2.

Quotation

3.

Contracts (validity, value/quantity)

4.

Schedule agreement

5.

Sales order

Inquiry: 1.

Item Category = AFN

2.

Doc type = IN

3.

Schedule line = AT or BP

VA11 - create inquiry VA12 - change VA13 - display VA15 - inquiry list V.03 - incomplete inquiry VA12 - delete inquiry Quotation: 1.

Doc type = QT

2.

Item Cat = AGN or AGNN

3.

Schedule line = BN or BP

VA21 - create Quotation VA22 - change VA23 - display VA25 - quotation list V.04 - incomplete quotation VA22 - delete quotation Sales Order: 1.

Doc type = OR

2.

Item Cat = TAB or TAP, TAQ, TANN, TAW, TAK

3.

Schedule line =

VA01 - create SO VA02 - change VA03 - display Contract: agreement to supply material or services for specific price between period. 1. Doc type = GK or QC, QP, WK1, WK2, SG 2.

Item Cat = KMN

3.

no schedule line, due to no delivery needed.

VA41 - create Contract VA42 - change VA43 - display VA45 - contract list V.06 - incomplete contract Scheduling Agreement: outline agreements, contain delivery dates n quantity. 1. Doc type = COB, DEL, DS, BL 2.

Item Cat = LPN

3.

schedule line = CP or blank

VA31 - create scheduling agreement VA32 - change VA33 - display VA35 - display list V.05 - incomplete scheduling agreement Features in SD Sales Processes: 1. Sales summary 2.

Availability check

3.

Material determination (VB11)

4.

Material listing and execution (VB01)

5.

Incomplete log

6.

Bank order processing

7.

Cross selling (VA41)

8.

Dynamic item proposal (VA51)

9.

Transfer requirement

Sales Documents

Description

INQUIRY

Customer inquiry is part of pre-sales process; it represents in system the request of customer for a sales quotation or information.

QUOTATION

An offer which is legally binding to deliver the product or provide a service in some fixed condition in a specified time period.

SALES ORDER

The sales order is a contractual agreement

between a sales organizations and a sold-toparty about delivering products or providing a service defined prices, quantities and period. CONTRACTS

Agreement with customer to supply materials/services for a specific price between specific periods of time.

SCHEDULING AGREEMENT

Outline agreements with customer which contain delivery dates and quantities to be delivered.

Contract types:

Contact Type

Description

Master Contract

A master contract is a contract in which you group other contracts as lower-level contracts.

Quantity Contracts

Quantity contract are used mainly to limit the quantity the customer can buy and to offer special pricing. Generally, quantity contract are used when the demand for a material is greater than the available supply and the business has to implement measures to limit supplied quantity evenly between its customers.

Value Contracts

The value contract is similar to quantity contract in that it limits the material or services to customer. However, instead of limiting due to quantity of stock the contact and its ceiling is based upon total value.

Service Contracts

The service contract is a legal agreement between the receiver of the service and the business supplying the service.

==================================== 1.5.7. SD Shipping ==================================== Shipping components: 1. Shipping overview 2.

Delivery processing (DN Delivery Note)

3.

Picking

4.

Packing

5.

PGI - post goods issue

6.

Transportation

Delivery type: 1. LF: Outbound delivery 2.

LO: Outbound delivery without reference

3.

LR: Return delivery

4.

NL: Replenishment delivery

5.

BV: Cash sales delivery

6.

UL: Delivery for stock transfer

Plant determination: 1. Customer material info record. 2.

Customer master delivery plant

3.

Material master delivery plant.

Shipping condition determination: 1. Maintain at customer master 2.

Document types

Loading point determination: 1. Material master 2.

At SO level: plant + shipping condition + loading group

Route determination: 1. Customer master 2.

Shipping point

3.

Shipping condition from customer master

4.

Transportation group from material master.

Shipping point: 1. plant 2.

shipping condition

3.

loading group

Delivery schedule: define time which receipt of goods at customer can be acknowledge (confirmed delivery date) Transportation scheduling: determine the good issue dateline and transportation scheduling date. Handling unit: physical unit hat consists of packaging materials (load carrier / packaging material) and good contain there in. Batch: parts of material that separated from other parts of same material and put in stock. Batch split: situation when you want to specify quantities from more than one batch for particular delivery item.

==================================== 1.5.9. SD Billing ==================================== Billing documents and types:

Billing Type

Description

F2

Invoice

F8

Pro Forma invoice

G2

Credit memo

L2

Debit Memo

RE

Credit for Returns

S1

Cancelation of Invoice

LR

Invoice List

IV

Intercompany billing

CS

Cash Sales

Balance sheet: Asset = Liability + Expenses Profit and Lost: Revenue - Expenses Various billing methods: 1. Individual billing document 2.

Collective billing - 1 invoice from multiple SO or delivery.

3.

Invoice split - single SO/delivery into multiple billing.

SD Debit Memo > MM Subsequent Debit SD Credit Memo > MM Subsequent Credit Push by demand = make to stock Pull by demand = make to order five possible influencing factors for account determination for invoices? • chart of accounts • sales organization • customer account assignment group • material account assignment group • account key

==================================== 1.5.10. SD Complaint Processing ====================================

Options: 1.

Sales return

2.

Free of charge delivery

3.

FOC subsequent delivery

4.

Returns

5.

Credit memo

6.

Debit memo

7.

Invoice correction request

Customer complaints can be settled in sales and distribution for various reasons:  Settling by free of charge delivery - A sales document type will be used to deliver goods at free of charge. This will be used to send the samples of your products. 

Settling by credit note request and credit note - price calculated wrongly, price is charge more than the agreed price or forgot to give the discount condition in the sales order or billing document.  Return of goods / Sales Return - customer returned damaged goods and wanted to revert the money paid.  Settlement by invoice correction request - Invoice correction request also a sales document to correct the quantity or price of the one or more line item in an invoice.

==================================== 1.5.11. Special Sales Scenario ==================================== Free good: compliment 1. Inclusive free goods quantity 2.

Exclusive free goods quantity - 2 line items.

Rush Order : customer pickup goods or delivery on the same day. Delivery created automatically. Cash Sales: Customer order, pick and pay at the same day. Make to order: received SO then only produce. Third party sales: vendor will produce and deliver to customer. Consignment sales: material at customer plant 1. Consignment fill up (KB) 2.

Consignment issue (KE)

3.

Consignment pick up (KA)

4.

Consignment return (KR)