Unit 14 Sales and Distribution SD Organizational Structures

Unit 14 Sales and Distribution (SD) - Organizational Structures -

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

Organizational Data • A hierarchy in which the organizational units in an enterprise arranged according to tasks and functions • Are static data and are rarely changed • The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 3

Sales and Distribution (SD) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 4

Components of Sales and Distribution Shipping Transport Sales and Distribution (SD) Sales Information System Sales Support Master Data Billing Foreign Trade Sales Credit Mgmt. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 5

Sales Organization • Sales Organization – Sells and distributes products – Negotiates terms of sales – Responsible for these business transactions • Critical organization element to the definition of business markets • A sales transaction is linked to only one Sales Organization January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 6

Sales Organization – (continued) US Sales S 000 January 2008 © SAP AG -

Distribution Channel • Identifies how products and services reach the customer • Can be assigned to one or more Sales Organizations January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 8

Distribution Channel – (continued) US Sales S 000 Retail Dist Channel (RE) January 2008 Wholesale Dist Channel (WH) © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 9

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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 10

Division – (continued) US Sales S 000 Medical Division January 2008 Chemical Division ©

Sales Area • Sales Area comprised of: – Sales Organization – Distribution Channel – Division • Will be used to link together the organizational aspects of sales to customers • Used for statistical analysis January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 12

Sales Area – (continued) US Sales S 000 Retail Dist Channel (RE) Medical Division January 2008 Chemical Division Wholesale Dist Channel (WH) Medical Division Chemical Division © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 13

Sales Area – (continued) US Sales S 000 Retail Dist Channel (RE) Medical Division January 2008 Chemical Division Wholesale Dist Channel (WH) Medical Division Chemical Division © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 14

Internal Sales Organization • Typically defines a territory or market • Linked to one or more Sales Areas • Optional organization structure January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 15

Sales Office US Sales S 000 Eastern Sales January 2008 Western Sales © SAP

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

Sales Person • Sales Person – Defined in Human Resources (HR) — Personnel Admin. – Specifically defines an individual rather than a position (sales rep. ) in sales processing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 18

Internal Sales Organization US Sales S 000 Eastern Sales Northeast Sales Group Western Sales Southeast Sales Group Northwest Sales Group Southwest Sales Group Salesperson 1 Salesperson 3 Salesperson 5 Salesperson 7 Salesperson 2 Salesperson 4 Salesperson 6 Salesperson 8 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 19

Shipping and Loading Points • 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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 20

Shipping Organization Plant P 000 Freight Dock FD 00 Loading Point 1 January 2008 Loading Point 2 Express Dock ED 00 Rail Dock RD 00 Loading Point 3 Loading Point 4 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 21

Unit 14, Group 1 – Exercises 114. Create Sales Organization 115. Assign Sales Organization to Company Code 116. Define Distribution Channels 117. Assign Distribution Channels to Sales Organization 118. Define Division 119. Assign Division to Sales Organization 120. Setup Sales Areas 121. Define Common Distribution Channels 122. Define Common Divisions January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 22

Unit 14, Group 2 – Exercises 123. Define Loading Groups 124. Create Shipping Point 125. Assign Plant to Sales Organization and Distribution Channel 126. Assign Shipping Points to Plant January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 23

Unit 15 Sales and Distribution (SD) - Master Data -

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

Master Data • Master data is relatively fixed – – Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data • Before making the Master Data configurations, you must have completely defined the organizational structures January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 26

Sales and Distribution (SD) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 27

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

Material Master – Sales Views • • • Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text January 2008 . 1 Org s e l Sa w Vie Sa les O Vie rg. 2 w Barrel Pen © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 29

Material Master – Sales: Sales Org. 1 View • 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 key that’s used to group several materials or services for analysis/reporting as well as search by match code. – Sales Unit • The unit of measure in which the material is sold, if left blank then uses the base unit of measure. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 30

Material Master – Sales: Sales Org. 1 View (continued) – Delivering Plant • Plant from which the material is available for sale. – Cash discount • Indicator used for materials, which allow for a cash discount. – Conditions • Pricing procedure for the material • Tax Data – Tax classification material • The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 31

Material Master – Sales: Sales Org. 1 View (continued) • Quantity Stipulations – Minimum Order Quantity • Minimum quantity a customer may order. – Minimum Delivery Quantity – Minimum quantity that may be delivered to a customer – Delivery Unit • The delivery unit consists of a number and a unit of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 32

Material Master – Sales: Sales Org. 2 View • Grouping Terms – Material Statistics Group • Determine which data the system updates in the logistics information system – Material Pricing Group • A way of grouping materials to which you want to apply the same conditions – Volume Rebate Group • Group definition used for rebate settlement. – General Item Category Group • Materials grouping that helps the system to determine item categories during sales document processing. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 33

Material Master – Sales: Sales Org. 2 View (continued) • Grouping Terms – Item Category Group • A grouping of materials that the system uses to determine item categories during the processing of sales documents. – Commission Group • Commission group to which the material is assigned. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 34

Material Master Sales: General/Plant View • General Data – Base unit • The unit of measure in which items are managed in the company – Gross weight • Used to check storage capacity in warehouse – Net weight • Weight excluding packaging and extras – this is needed for sales and distribution – Avail. Check • Option to do an availability check for orders and MRP January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 35

Material Master Sales: General/Plant View (continued) • Shipping Data (times in days) – Transportation Group • Group materials that have the same transportation requirements. For example, bulk stock materials – Loading Group • Loading groups define materials that have the same loading requirements, such as forklift truck, or crane. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 36

Material Master Sales: General/Plant View (continued) • Packaging Material Data – Material group Pack Materials • Materials that require similar packaging materials • General Plant Parameters – Negative stock • Indicates if negative stocks of the material are allowed at the plant – Profit Center • Identifies the profit center in the current controlling area January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 37

Material Master Sales: Sales Texts View • Sales Texts – Exchange of information throughout the logistics chain – In sales and distribution, this exchange of information is supported by texts in master records and documents – You can define as many text types as you require (sales texts, shipping texts, internal notes, supplement texts etc. ) for master records and documents January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 38

Unit 15, Group 1 – Exercises 127. Create Sales Views for Trading Goods 128. Create Sales Revenue Account 129. Create Sales Revenue Deduction Account January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 39

Customer Master Data is created by Sales Area • Sales Organization • Distribution Channel • Division Sales Area US Sales S 000 Distribution Channel - RE January 2008 Division - 01 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 41

Customer Master - (continued) General Data Company Code Data Financial Accounting (FI) ata: D l era ss n e G re Add Sa les Sa Data: les Customer 43 Sales Data Sales and Distribution (SD) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 42

Customer Master • A master record must be created for every customer • General data, Company Code data (Financial Accounting - FI), and Sales Org. data (Sales and Distribution - SD) General data Address Control data Payment transactions January 2008 Company Code data Account Mgmt Payment transactions Correspondence Sales Org. data Sales Shipping Billing Partner Usage © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 43

Customer Master 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. 44

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. 45

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. 46

Customer Master General Data – Marketing • Classification – – Nielsen ID Customer classification Industry codes • Operating Figures – Annual sales – Number of employees – Fiscal year variant • Sales Prospecting – Legal status January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 47

Customer Master General Data – Unloading Point • Unloading Points – – – Unloading point Default Calendar key Default Unloading Point Goods receiving hours January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 48

Customer Master General Data – Foreign Trade • Export Data – – Country key TDO Date (Table of Denial Orders) SDN Date (Specially Designated Nationals) Boycott Date • Usage – Mainly civilian usage – Mainly military usage • Classification – Biochemical warfare – Nuclear nonproliferation – National security January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 49

Customer Master General Data – Contact Persons • Contact Person – – Name First name Department Function January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 50

Customer Master Company Code – Acct Information • Accounting Information – Rec. 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. 51

Customer Master Company Code – Payment Transactions • Payment Data – Terms of Payment – Tolerance group • Automatic Payment Transactions – – – Payment methods Payment block Alternative payer Grouping key Lockbox January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 52

Customer Master Company Code – Correspondence • Dunning Data – Dunning procedure – Dunning block – Dunning recipient • Correspondence – Accounting clerk – Acct at customer – Customer user • Payment Notices To – Customer – Accounting January 2008 – Sales – Legal © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 53

Customer Master Company Code – Insurance • Export Credit Insurance – – – Policy Number Institution Number Amount Insure Valid Until Lead Months Deductible January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 54

Customer Master Sales and Distribution – Sales • 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. 55

Customer Master Sales and Distribution – Shipping • 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. 56

Customer Master Sales and Distribution – Billing • 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. 57

Customer Master Sales and Distribution – Partner Functions • Partner Functions – Partner Function (PF) – Number – Partner Description • • • Sample Listing of Partner Functions Types SP – Sold-to-party BP – Bill-to-party PY – Payer SH – Ship-to-party January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 58

Business Partners • Defines all of the parties involved in a business transaction • Differentiates between their roles – – Customer Carrier Employees Etc. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 59

Business Partners • The system will automatically assign a business partner to the customer master and to any transaction • There are four default business partner – – Sold-to Ship-to Bill-to Payer • They may be the same or different. • More business partners can be added to carry out additional business transactions January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 60

Customer Account Group • Customer masters are assigned to a customer account group • Through field status maintenance, account groups can be setup for one-time customers, regional customers, internal … • The customer account group controls both type and number range assignment for customers January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 61

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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 62

Business Partners Sold-to Party • Customer who orders • Can default for all partner functions — sold-to, ship-to, payer, bill-to • Primary type of business partner • Independent and cannot be linked to other sold-to partners January 2008 Sold-to Ship-to Bill-to Payer © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 63

Business Partners Ship-to Party Sold-to • Receive delivery • Can be linked to more than one sold-to address Ship-to Bill-to Payer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 64

Business Partners Bill-to Party Sold-to • Partner who is delivered the invoice • Can be linked to more than one sold-to address Ship-to Bill-to Payer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 65

Business Partners Payer Sold-to Ship-to • Partner who pays the bill • Can be linked to more than one sold-to address January 2008 Bill-to Payer © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 66

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 January 2008 Payer: 10 Sold-to: 10 Ship-to: 10 Bill-to: 10 Payer: 10 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 67

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

Unit 15, Group 2 – Exercises 130. Review Sold-to, Ship-to, and Bill-to Account Groups 131. Create Customer 132. Create Ship-to Party 133. Assign Ship-to Party to Customer January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 69

Unit 16 Sales and Distribution (SD) - Master Data -

Master Data • Master Data is relatively fixed – – Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data • Before making the Master Data configurations, you must have completely defined the organizational structures January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 72

Sales and Distribution (SD) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 73

Pricing • • Highly touted “World-class” functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 75

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. 76

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. 77

Pricing Components • Pricing uses tables to match the condition of order to the applicable pricing routine • These routines can – Add/Subtract amounts, percentages – Give dollar, weight, quantity breaks/additions – Accrue January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 78

Pricing Procedure • Pricing uses one of possibly many procedures based upon – – Item Customer Order type Sales Area • The procedure will then apply – – Prices (Gross) Discounts & Surcharges Freight Taxes January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 79

Pricing Procedure – (continued) • Pricing conditions for each item on the order • Pricing condition uses – Pricing procedure – Access sequence – Conditions type • Determines adjustments and price January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 80

Pricing Process Line Item in Sales Order Pricing Procedure Determination Pricing Procedure Contains List of Condition Types Point to Access Sequence Provides the Search Order for Pricing January 2008 PPEN 000 Sales Area S 000 -RE-01 Doc. Pric. Proc. OR=A Cus. Pric. Proc. 43 = 1 Pricing Procedure = RVAJUS Condition Type PR 00 = Price Access Sequence PR 02 = Price 10 – Customer/material 20 – Price list cat. /currency/material 30 – Material Price = $9. 50 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 81

Pricing Process Line Item PPEN 000 January 2008 Pricing Proced. Det. Sales Area Doc. PP Cust. PP CTyp points to Access Seq. PR 00 Points to PR 02 Access Seq. points to Cond. Tbls. PR 02 Points to Cond. Tables Cond. Tbls. contain the Item Pricing Cust. / Mat. Price List / Cur / Material © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. N/A $ 9. 50 82

Price Agreements • Standard price agreements – – Product Customer & material Customer group & material group January 2008 • Detailed price agreements – Pricing scales – Rebates – Customer expected price © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 83

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. 84

Credit Limits and Checking – (continued) • Credit representatives are able to check a customer’s credit situation to decide whether the customer should be granted credit • Works in distributed systems – Central financial accounting – Non-central sales and distribution on several sales and distribution computers January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 85

Credit Check • You can use this function at any time within service processing to call up information about the current credit status of a customer • Credit limit can be checked manually or automatically • The system generally checks the planned costs without tax • If a customer has exceeded their credit limit, the system issues a warning January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 86

Credit Check – (continued) • The checks can be carried out at various times during the sales order cycle, from order receipt to delivery • You can define a credit check for any valid combination of the following data: • Risk category • Document credit group • Credit control area January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 87

Unit 16 – Exercises 134. 135. 136. 137. January 2008 Create Material Prices Create Customer Specific Material Price Create Customer Discount Establish Credit Limit for Customer © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 88

Unit 17 Sales and Distribution (SD) - Rules -

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

Rules • Defines the parameters for Master Data and Transactions • Determines functionality for Master Data and Transactions • Relatively fixed • Changes as policy changes January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 91

Sales and Distribution (SD) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 92

Assign Sales Area to Pricing Procedure Assignment uses the combination of: • Sales Area • Document Pricing Procedure • Customer Pricing Procedure Each combination of these has a pricing procedure assigned January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 93

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 All movements of stock January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 94

Credit Checking • Static Credit Limit Check – – Open Orders Open Deliveries Open Billing documents Open Items (accounts receivable) • Dynamic credit limit with credit horizon check (future dates) • Credit check to maximum document value (per order) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 95

Shipping Functions • Shipping Point Determination – The shipping point is selected for each line item based on the shipping point determination process – Shipping point based on: – Shipping condition – Loading group – Delivering plant January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 96

Shipping Functions – (continued) • Route Definition – 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. 97

Revenue Assignment Determination • Transfers billing values from the Sales and Distribution to Finance • Used to recognize revenue • Keys used to allocate revenue to the proper account January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 98

Automatic Account Assignment • Defines the G/L accounts that billing entries are posted to — revenue, sales deductions, surcharges, freight charges, etc. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 99

Unit 17 – Exercises 138. 139. 140. 141. 142. 143. January 2008 Assign Sales Areas to Pricing Procedure Define Availability Check for Sales Orders Assign Sales Document to Credit Check Create Shipping Point Determination Create Revenue Account Assignment Key Check Stock Status © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 100

Unit 18 Sales and Distribution (SD) - Transactions -

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

Transaction Data • Includes internal and external exchanges that describe business activities • Unlike master data, aggregate transactional data is dynamic – each transaction is unique January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 103

Sales and Distribution (SD) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 104

Document Types Inquiry Sales Order Rush Order January 2008 Quotation Returns Contract Cash Sales Consignment Scheduling Agreement Debit Memo Returnable Packaging Credit Memo © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 105

Order Processing Functionality • Delivery scheduling • Availability check • Transfer of requirements to Material Requirements Planning • Pricing • Credit check • Shipping point and route determination • Foreign trade and license processing • Document flow January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 106

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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 107

Delivery Scheduling – (continued) • Structure of sales documents Header Line Item # 1 Schedule Line # 2 Line Item # 2 Schedule Line # 1 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 108

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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 109

Backward Scheduling Material Availability Order Date 1 st 2 nd Pick & Pack Time (2 days) January 2008 Transp. Sched. Loading 3 rd 4 th Transp. Sched. Time (1 day) Loading Time (1 day) Goods Issue 5 th Requested Delv. Date 6 th Transit Time (2 days) © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 110

Forward Scheduling Order Date 1 st Transp. Material Availability Sched. 2 nd 3 rd Pick & Pack Time (2 days) January 2008 Loading Goods Issue Requested Delv. Date 4 th 5 th 6 th Transp. Sched. Time (1 day) Loading Time (1 day) New Delv. Date 7 th Transit Time (2 days) © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 111

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 earliest date for full delivery – Determines the number and dates for partial deliveries to fulfill the order January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 112

Availability Check – (continued) • 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 All movements of stock January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 113

Transfer Requirements to Material Requirements Planning • Ordered quantities are passed to Material Requirements Planning • Controlled by the schedule line category • Blocking of documents can affect requirements passing — delivery block January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 114

Pricing • • Highly touted “world-class” functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 115

Credit Check • Efficient means to implement credit management • Integrated with Financial Accounting (FI) -- Via credit control area • Automatically alerts when a credit check fails • Comprehensive credit management reporting January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 116

Shipping Point and 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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 117

Foreign Trade and License Processing • Predefined trade areas — NAFTA, EU • Automated reporting for trade areas • Automated controls – License management – Embargo lists – Control by customer, country, product, point in time January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 118

Document Flow • The document flow feature allows you to find the status of an order at any point in time. The SAP system updated the order status every time a change is made to any of the documents created in the customer order management cycle (Order to Cash). January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 119

Unit 18 – Exercises 144. 145. 146. 147. 148. 149. 150. 151. 152. 153. January 2008 Create Sales Order Check Stock Status Create Delivery Note for Sales Order Check Stock Status Pick Materials on Delivery Note Post Goods Issue Check Stock Status Bill Customer Post Receipt of Customer Payment Review Document Flow © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 120