Sales and Distribution Master Data EGN 5620 Enterprise

Sales and Distribution Master Data EGN 5620 Enterprise Systems Configuration Fall, 2015

Sales & Distribution Master Data SAP Implementation

Business Process Integration FI MM SD Master Data Rules FI MM SD FI FI

Business Process Integration SD SD January 2008 © SAP AG - University Alliances and

Sales Organization A sales organization belongs to exactly one company code A sales transaction is linked to only one Sales Organization Functions of Sales Organization: ◦ Sells and distributes products ◦ Negotiates terms of sales ◦ Responsible for these business transactions SAP allows assigning one or more plants to a sales organization. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 5

Distribution Channels Distribution channels identify how products and services reach the customer Distribution channels can be assigned to one or more Sales Organizations January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 6

Division It can be assigned to one or more Sales Organizations It is an organization level to which customer specific information and requirements are maintained (e. g. pricing, partial delivery) It is often used to define product line distribution January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 7

Sales Area comprised ◦ Sales Organization ◦ Distribution Channel ◦ Division of: Used to link together the organizational aspects of sales to customers Also used for statistical analysis January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 8

Sales Area – (continued) US Sales US##. UW## Online Dist Channel (IN) Bicycle Division January 2008 Accessory Division Wholesale Dist Channel (WH) Bicycle Division Accessory Division © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 9

Shipping and Loading Points A shipping point is the top level in the organization for shipping It usually exists physically in a plant A shipping point can be allocated to several plants It can be divided into several loading points (for more specialized handling) A delivery is always initiated from exactly one shipping point. Thus all items of a delivery belong to one shipping point. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 10

Shipping Organization Plant P_ _ _ Freight Dock FD_ _ _ Loading Point 1 January 2008 Loading Point 2 Express Dock ED_ _ _ Rail Dock RD_ _ _ Loading Point 3 Loading Point 4 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 11

Business Process Integration SD Master Data SD Three elements of master data are the customer, material and pricing 12

Master Data Core Elements Customer Master Data Material Pricing January 2008 © SAP AG

Customer Master Data is created in Sales Area: • Sales Organization • Distribution Channel • Division Sales Area US Sales UE##/UW## Distribution Channel – WH/IN January 2008 Division – BI/AS © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 14

Customer Master - (continued) 1. General Data: demographic data 2. Company Code Data: Accounting information ta: a D eral n e G ress d d A Sa l Sa es Da les ta: Customer 43 3. Sales & Distribution Data: Sales information January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 15

Customer Master A master record must be created for every customer consisting of: 1. General data, 2. Company code data (Financial Accounting-FI), and 3. Sales & Distribution data (Sales and Distribution SD) General data Address Control data Payment transactions Company Code data Account Mgmt Payment transactions Correspondence January 2008 Sales/distribution data Sales Shipping Billing Partner Usage © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 16

Customer Master 1. General Data – Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 17

Customer Master General Data – Control Data Account Control ◦ Vendor ◦ Authorization ◦ Trading partner ◦ Group key Tax Information ◦ Tax codes ◦ Fiscal address ◦ Country code ◦ City code Reference Data/Area January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 18

Customer Master General Data – Payment Transactions Bank Details ◦ Country ◦ Bank Key ◦ Account holder ◦ Bank Account ◦ Control Key ◦ Collection January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 19

Customer Master 2. Company Code – Acct Information Accounting Information ◦ Reconciliation Account ◦ Sort key ◦ Head office Interest Calculation ◦ Interest indicator ◦ Interest cycle ◦ Interest calculation frequency in months ◦ Last interest run Reference Data ◦ Previous account number ◦ Buying group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 20

Customer Master Company Code – Payment Transactions Payment Data ◦ Terms of Payment ◦ Tolerance group Automatic Payment ◦ Payment methods ◦ Payment block ◦ Alternative payer ◦ Grouping key ◦ Lockbox Transactions January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 21

Customer Master 3. Sales and Distribution – Sales Order ◦ Sales District ◦ Sales Office ◦ Sales Group ◦ Order Probability ◦ Item Proposal Pricing / Statistics ◦ Price Group ◦ Customer Pricing Procedure ◦ Price List Type ◦ Customer Statistical Group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 22

Customer Master Sales and Distribution – Shipping ◦ Delivery Priority ◦ Shipping Conditions ◦ Delivering Plant ◦ Order Combination Partial Delivery ◦ Complete Delivery Required By Law ◦ Partial Delivery per Item ◦ Max Part Deliveries ◦ Under/Over delivery Tolerances General Transportation Data ◦ Transportation Zone January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 23

Customer Master Sales and Distribution – Billing Section ◦ Subs. Invoice Processing ◦ Rebate ◦ Price Determination ◦ Invoicing Dates Delivery and Payment Terms ◦ Incoterms ◦ Payment Terms Accounting ◦ Account Assignment Group Taxes ◦ Tax Classification January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 24

Customer Master Sales and Distribution – Partner Functions ◦ Partner Function (PF) ◦ Number ◦ Partner Description Partial list of Partner ◦ SP – Sold-to-party ◦ BP – Bill-to-party ◦ PY – Payer ◦ SH – Ship-to-party Functions Types January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 25

Business Partners Sold-to Party Customer who orders can default for all partner functions — sold-to, ship-to, payer, billto Primary type of business partner Independent and cannot be linked to other sold-to partners Sold-to Ship-to Bill-to Payer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 26

Business Partners Ship-to Party Receive delivery Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 27

Business Partners Bill-to Party Partner who is delivered the invoice Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 28

Business Partners Payer Partner who pays the bill Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 29

Single and Multiple Ship-to Parties Sold-to: 10 Single ship-to Ship-to: 10 Bill-to: 10 Multiple ship-to’s Single payer Ship-to: 11 Payer: 10 Sold-to: 10 Ship-to: 10 Bill-to: 10 January 2008 Payer: 10 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 30

Business Partners Sold-to Ship-to Bill-to Ship-to Payer Ship-to January 2008 Ship-to © SAP AG

Master Data Core Elements Pricing Customer Master Data Material Pricing January 2008 © SAP

Standard Pricing Process Standard Pricing ◦ Calculates the gross price ◦ Then applies –Discounts –Surcharges –Applicable Taxes ◦ Calculates the final price Final price = gross price - discounts + surcharges + taxes January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 33

Cost-Plus Pricing Process Cost-plus pricing ◦ Captures the base cost ◦ Then applies –Markup –Discounts –Surcharges –Applicable Taxes ◦ Calculates the final price Final price = cost + markup discounts + surcharges + taxes January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 34

Pricing Procedure Pricing procedures are assigned to the transactions for sale order process by defining the following dependencies: ◦ Customer ◦ Sales Document Type ◦ Sales area The pricing procedure ◦ Prices (Gross) ◦ Discounts & Surcharges ◦ Freight ◦ Taxes will then apply January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 35

Pricing Procedure – (continued) The sequence of activities for pricing process: 1. Define pricing procedure based on sales area, sales document, and customer (e. x. RVAJUS). 2. Define condition types (e. x. PR 00) for each of the price elements, such as prices, discounts, and surcharges. 3. Define the access sequences (e. x. PR 02) that enable the system to find valid condition records. 4. Searching for price according to a provided access sequence January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 36

Pricing Process Select a line Item in Sales Order Determine a Pricing Procedure Contains List of Condition Types Point to Access Sequence Provides the Search Order for Pricing EPAD 10## Sales Area SE##-WH-AS Doc. Pric. Proc. A Cus. Pric. Proc. 1 Pricing Procedure = RVAJUS Condition Type PR 00 Access Sequence PR 02 10 – Customer/material 20 – Price list cat. /currency/material 30 – Material Price = $75 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 37

Credit Limits and Checking Define automatic credit limit checks to your company’s requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on) A credit representative is automatically alerted to a customer’s critical credit situation as soon as order processing starts Employees can be automatically notified of critical credit situations via internal mail January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 38

Master Data Core Elements Material Customer Master Data Material Pricing January 2008 © SAP

Material Master – Sales Views (review) Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text January 2008 rg. 1 O es Sal View Sa l Vie es Or g. w 2 Barrel Pen © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 40

Business Rules SD January 2008 © SAP AG - University Alliances and The Rushmore

Availability Check For determining the material availability date, SAP can include specific stocks below, if selected: ◦ Inventory reserved for safety stock ◦ Stock in transfer ◦ Quality inspection stock ◦ Blocked stock ◦ Restricted use stock ◦ All movements of stock January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 42

Shipping Functions Shipping Point Determination ◦ The shipping point is selected for each line item based on the shipping point determination process ◦ Shipping point selection is based on: – Shipping condition – Loading group – Delivering plant January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 43

Shipping Functions Route Definition ◦ Define delivery method and the transit time ‘Dummy’ routes can be used to easily define transit time Route Determination ◦ Proposed route is chosen using –Shipping point –Destination country –Transportation zone –Shipping condition January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 44

Sales & Distribution Master Data GBI, Inc.

Enterprise Structure Client (330) Credit Control Area (GL##) Business Area (BI##) Chart of Accounts (GL##) Purchasing Group (N##) Controlling Area (NA ##) Company Code (US##) Purchasing Org. (US ##) Fiscal Year Variant (K 1) Cost centers Plants (DL##/MI##/SD##) FG## SF## Sales Org. (UE##/UW##) RM## MI## TG## Shipping Point (DL##/MI##/SD##) Distribution Channel (IN/WH) Division (BI/AS) Sales Area

GBI Customers

Customer Master General & Company Code Data:

Customer Master Sales Area Data:

Customer Master Price Data: Discount for specific customer:

Customer Master Credit Data:

Assign Sales Areas to Price Procedures: To link sales area to a pricing procedure. The RVAJUS pricing procedure is the standard USA pricing procedure with jurisdiction code. In the pricing procedure, prices are assigned to individual line items in sales order as well as discounts, surcharges, etc. SOrg. DChl Dv Do. Pr Cu. PP Pri. Pr. UE## WH AS A 1 RVAJUS UE## WH BI A 1 RVAJUS UW## IN AS A 1 RVAJUS UW## IN BI A 1 RVAJUS UW## WH AS A 1 RVAJUS UW## WH BI A 1 RVAJUS

Exercises: (Due date 10/19/2015) 1. Define Sales Organization 2. Define Shipping Point 3. Assign Sales Organization to Comp. Code 4. Assign Distribution Channel to Sales Org 5. Assign Division to Sales Organization 6. Set Up Sales Area 7. Assign SO – Distribution Channel – Plant 8. Assign Sales Area to Credit Control Area 9. Assign Business Area to Plant and Div 10. Assign Shipping Point to Plant 11. Assign SP with Loading Groups 12. Assign G/L Revenue Accounts 13. Define Pricing Procedure Determination 14: Define Rules by Sales Area

Exercises: (Due date 10/19/2015) 15. 16. 17. 18. 19. 20. Extend Material Master Create Customers Create Pricing Conditions Create Customer Specific Material Price Create Customer Discount Establish Credit Limit for Customers