Sales & Distribution

-Organizational Structures
and Overview -

Organisational Units in Sales and

Distribution

Sales Organization
Sells and distributes products,
negotiates terms of sales and is
responsible for these business
transactions
Critical organization element to the
definition of business markets
A business transaction is linked to
one Sales Organization

Distribution Channel
Identifies how products and services
reach the customer
Can be assigned to one or more
Sales Organizations

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

Sales Area
Organizational element comprised of:
Sales Organization
Distribution Channel
Division

Will be used to link together the

organizational aspects of sales to
customers
Used for statistical analysis

Sales Area
Sales
Organisation
Distribution
Channel
Division

RPL

RIL

Direct
DI

Polypropelene
PP

Exports
EX
Staple
Fibre
PF

Staple
Fibre
PF

Direct
DI

Staple
Fibre
PF

FF

Sales Office
Typically defines a territory or market
area
Linked to one or more Sales Areas
Optional organization structure

Sales
Area

Eastern
Sales
Office

Western
Sales
Office

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

Sales Person
Sales Person
Defined in HR Personnel Admin.
Specifically defines an individual rather
than a position (sales rep.) in sales
processing

Sales
Ares
Wester
n
Sales
Office

Southwest
Sales Group

Sales
Perso
n

Sales
Perso
n

Eastern
Sales
Office

Northwest
Sales Group

Sales
Perso
n

Sales
Perso
n

Shipping Point & Loading

Point
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

Sales and Distribution

Overview

Sales and Distribution

Overview
Mechanisms to execute the business
processes used in the selling, shipping
and billing of products and services
Tightly coupled data flow to the other
SAP modules Integration
Flexible and robust functionality that is
tailored through configuration

SD Overview Master Data

Detailed information about
customers, materials and business
partners
Flexible data structures that support
the business environment
Specialized master data to support
sales order processing

SD Overview Pre Sales

Provides the functionality to support the

staff involved in business development

and customer service processes
Primary functions
Sales Prospects
Contact Persons
Competitors and Competitive Products
Sales Activities
Direct Marketing

SD Overview Sales
Primary base for

customer order
management
Highly customizable
Sophisticated pricing
Integrated ATP
Integrated credit
management

Sampling of functions
Inquiries & Quotes
Sales Orders
Returns
Contracts & Scheduling
Agreements
Consignment
Rush Orders & Cash
Sales
Back Orders &
Subsequent Deliveries
Credit & Debit Memo
Requests

SD Overview Shipping
Main functions
Picking, Packing & Inventory
management
Generate Shipping Documents
Transportation Management
Routes
Transportation Scheduling
Delivery Scheduling, Returns

Deliveries & Stock Transfer

SD Overview Billing
Invoice Generation automatic or

manual
Comprehensive set of billing
functions
Linked documents e.g. invoice &
credit memo
Real-time integration with finance
(FI)
Fully integrated and comprehensive
pricing

SD Overview S I S
Flexible tool that allows one to
collect, consolidate, and utilize data
from sales and distribution
processing
A component of the Logistic
Information System (LIS)

Sales Order Cycle

Customer Order

Final Payment

Picking

Accounts Receivable

Goods Issue

Billing

SD Process Steps
Sales

Quotation

Shipping

Delivery
Note

Billing

Billing

FI
A/R

Post
Incoming
Payment

Sales
Order

Picking

Post Goods
Issue

Sales Inquiry & Quotation

Support pre-sales processes

Are time sensitive
Automatic availability check
Automatic pricing
No impact to FI
Can be used as reference documents

Sales Sales Order

Core of customer
order management
No impact to G/L
Can reference
existing
documents
Copies key
information from
master data

Automated
standard
functions ...
availability check
MRP updating
pricing
credit check
delivery
scheduling
export control
shipping & route

Shipping Delivery Note

Initiates the shipping process
Control document for shipping
processes maintains status of
each processing step
Re-confirms: availability, credit,
foreign trade, delivery scheduling
Facilitates transportation planning

Shipping Picking &

Packing
Picking: Physical activity of moving
goods from the warehouse for further
processing (packing, loading)
Packing: Determines packing
materials and packing details
Advanced processing includes, e.g.
batch mgmt., serial number control

Shipping Post Goods

Issue
Completes the shipping process
Typically performed when customer
takes ownership
Updates inventory
Updates G/L accounts
Cost of goods sold
Inventory

Billing
Generate customer invoice
Updates FI
Customer account
G/L accounts: revenue, discount, etc.

Applies relevant pricing

Updates customer credit

Thank You