Friday, September 13, 2013

SAP SD Notes.

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1.5.1.  Sales and Distribution Processes
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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


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1.5.2.  SD Enterprise Structure
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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
1
1
Company Code
1
1
Plant
1
1
Storage Location
Company Code
Mandatory
1
M
Plant
1
M
Sales Org
1
M
Transportation Planning Point
1
1
Credit Control Area
Plant
Mandatory
1
1
Company Code
1
M
Storage Location
1
M
Distribution Chain
1
M
Shipment Point
Storage Location
Mandatory
1
1
Plant
SALES
Sales Org
Mandatory
1
1
Company Code
1
M
Distribution Channel
1
M
Division
Distribution Channel
1
M
Sales Org
1
M
Division
Division
1
M
Sales Org
Distribution Chain
1
M
Plant
Sales Area
1
M
Sales Office
1
1
Credit Control Area
Sales Office
1
M
Sales Area
1
M
Sales Group
Sales Group
1
M
Sales Office
1
M
Sales Employee
Sales Employee
1
1
Sales Group
DISTRIBUTION / DELIVERY
Shipping Point
1
M
Plant
1
M
Loading Pont
Loading Point
1
M
Shipping Point
DIST FOR SHIPMENT TRANSPORTATION
Transportation Planning Point
1
1
Company Code
CREDIT MANAGEMENT (under FI)
Credit Control Area
1
1
Company Code

1
M
Sales Area




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1.5.3.  SD Master Data
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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 a material 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.


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1.5.4.  SD Controlling Documents
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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
Document Type with Description
Pre Sales
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 Types
LF – Outbound Delivery
LO – Outbound Delivery without reference
LR – Returns Delivery
NL – Replenishment Delivery
Billing Document Types
F2 – Invoice
F8 – Pro forma Invoice
G2 – Credit Memo
L2 – Debit Memo
RE - Returns


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1.5.5.  SD Pricing
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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.  

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1.5.6.  SD Processes
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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-to-party 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.


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1.5.7.  SD Shipping
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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.


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1.5.9.  SD Billing
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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  


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1.5.10.  SD Complaint Processing
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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.



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1.5.11.  Special Sales Scenario
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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)





7 comments:

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