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.
- Delivery document (LF)
- Picking : pick correct material, quantity, plant.
- Packing : pack materials.
- PGI : Post Goods Issue.
- Transportation : 3rd party.
- 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:
- Client
- Company / Company Code
- Sales Org - Organization reporting to corporate or groups of management that sells the products from various channels of one or more division.
- Distribution Channel - organization element, which represents the way in which goods or services are distributed to the customers.
- Division - group material or services
- Sales Area
- Sales Office - location sales activity.
- Sales Group - internal, domestic, external.
- Sales Employee
- 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:
- Plant - where material will be shipped out. location from where materials and services are delivered… act like distribution center.
- Storage Location - place where all the materials are being stored in a plant.
- Shipping Point - ship the products to customer; each plant can have many shipping points.
- Loading Point - pick and pack. place in a shipping point where goods are loaded.
- 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:
- header - document type (customer)
- item - item category (material)
- schedule line - schedule line category (availability)
General FI and MM
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Client
Mandatory
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1
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1
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Company Code
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1
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1
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Plant
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1
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1
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Storage Location
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Company Code
Mandatory
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1
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M
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Plant
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1
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M
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Sales Org
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1
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M
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Transportation Planning Point
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1
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1
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Credit Control Area
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Plant
Mandatory
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1
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1
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Company Code
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1
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M
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Storage Location
|
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1
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M
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Distribution Chain
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1
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M
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Shipment Point
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Storage Location
Mandatory
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1
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1
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Plant
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SALES
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Sales Org
Mandatory
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1
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1
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Company Code
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1
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M
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Distribution Channel
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1
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M
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Division
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Distribution Channel
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1
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M
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Sales Org
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1
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M
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Division
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Division
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1
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M
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Sales Org
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Distribution Chain
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1
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M
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Plant
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Sales Area
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1
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M
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Sales Office
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1
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1
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Credit Control Area
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Sales Office
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1
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M
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Sales Area
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1
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M
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Sales Group
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Sales Group
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1
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M
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Sales Office
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1
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M
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Sales Employee
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Sales Employee
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1
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1
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Sales Group
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DISTRIBUTION / DELIVERY
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Shipping Point
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1
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M
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Plant
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1
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M
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Loading Pont
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Loading Point
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1
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M
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Shipping Point
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DIST FOR SHIPMENT
TRANSPORTATION
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Transportation Planning Point
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1
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1
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Company Code
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CREDIT MANAGEMENT (under FI)
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Credit Control Area
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1
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1
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Company Code
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1
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M
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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:
- General Data
- Company Code Data
- Sales Area Data: Currency, Partner Function.
MATERIAL MASTER DATA (3)
Control by: Material Type
View: Enterprise Structure
- Plant
- Sales Org
- 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:
- Sold to Party
- Ship to Party
- Bill to Party
- Payer
- 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?
- Sales Org. data 1 & 2
- Sales: General / Plant
- MRP 1, 2, 3 & 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
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Structure of Sales Document:
- Header level
- Item level
- Schedule line
Origin Data: where data is coming from, into SD. Example from:
- Customer master
- Material master
- Sales documents
- 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:
- Picking
- Packing
- Shipment
- Good Issue
Below are data
can be maintained in Sales document types:
Sales
Documents
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Document
Type with Description
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Pre
Sales
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IN
– Inquiry
QT
– Quotation
FD
– Free of Charge Delivery
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Sales
Order
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OR
– Standard Order
BV
– Cash Sales
RO
– Rush Order
KB
– Consignment Fill Up
KE
– Consignment Issue
KR
– Consignment Returns
KA
– Consignment Pick Up
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Outline
Agreements
|
CQ
– Quantity Contracts
WK1/WK2
– Value Contract
WV
– Service Contracts
MV
– Rental Contracts
GK
– Master Contracts
DS
– Scheduling Agreement
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Complaint
|
CR
– Credit Memo Request
DR
– Debit Memo Request
RE
– Returns
SDF
– Subsequent Free of Charge Delivery
RK
– Invoice Correction Request
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Delivery
Document Types
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LF
– Outbound Delivery
LO
– Outbound Delivery without reference
LR
– Returns Delivery
NL
– Replenishment Delivery
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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:
- Material price
- Taxes
- Discounts
- Freight
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
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Automatic function:
- Pricing
- Availability Check
- Transferring requirement to material planning (MRP)
- Delivery schedule
- Shipping point and route determination
- Checking credit limits.
Consists of:
- Inquiry - potential customer.
- Quotation
- Contracts (validity, value/quantity)
- Schedule agreement
- Sales order
Inquiry:
- Item Category = AFN
- Doc type = IN
- Schedule line = AT or BP
VA11 - create inquiry
VA12 - change
VA13 - display
VA15 - inquiry list
V.03 - incomplete inquiry
VA12 - delete inquiry
Quotation:
- Doc type = QT
- Item Cat = AGN or AGNN
- Schedule line = BN or BP
VA21 - create Quotation
VA22 - change
VA23 - display
VA25 - quotation list
V.04 - incomplete quotation
VA22 - delete quotation
Sales Order:
- Doc type = OR
- Item Cat = TAB or TAP, TAQ, TANN, TAW, TAK
- Schedule line =
VA01 - create SO
VA02 - change
VA03 - display
Contract: agreement to supply material or services for specific price between period.
- Doc type = GK or QC, QP, WK1, WK2, SG
- Item Cat = KMN
- 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.
- Doc type = COB, DEL, DS, BL
- Item Cat = LPN
- 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:
- Sales summary
- Availability check
- Material determination (VB11)
- Material listing and execution (VB01)
- Incomplete log
- Bank order processing
- Cross selling (VA41)
- Dynamic item proposal (VA51)
- Transfer requirement
Sales
Documents
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Description
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INQUIRY
|
Customer
inquiry is part of pre-sales process; it represents in system the request of
customer for a sales quotation or information.
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QUOTATION
|
An offer
which is legally binding to deliver the product or provide a service in some
fixed condition in a specified time period.
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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.
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CONTRACTS
|
Agreement
with customer to supply materials/services for a specific price between
specific periods of time.
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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.
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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:
- Shipping overview
- Delivery processing (DN Delivery Note)
- Picking
- Packing
- PGI - post goods issue
- Transportation
Delivery type:
- LF: Outbound delivery
- LO: Outbound delivery without reference
- LR: Return delivery
- NL: Replenishment delivery
- BV: Cash sales delivery
- UL: Delivery for stock transfer
Plant determination:
- Customer material info record.
- Customer master delivery plant
- Material master delivery plant.
Shipping condition determination:
- Maintain at customer master
- Document types
Loading point determination:
- Material master
- At SO level: plant + shipping condition + loading group
Route determination:
- Customer master
- Shipping point
- Shipping condition from customer master
- Transportation group from material master.
Shipping point:
- plant
- shipping condition
- 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
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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:
- Individual billing document
- Collective billing - 1 invoice from multiple SO or delivery.
- 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
• 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:
- Sales return
- Free of charge delivery
- FOC subsequent delivery
- Returns
- Credit memo
- Debit memo
- 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
- Inclusive free goods quantity
- 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
- Consignment fill up (KB)
- Consignment issue (KE)
- Consignment pick up (KA)
- Consignment return (KR)
