Sales and distribution

OVERVIEW

-1-

AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Break
Distribution flow
Billing and reporting
End

-2-

Organizational entities

-3-

Organizational entities
Company code
Independant accounting unit
Legal entity

Sales organisation
Responsible for distributing goods and services
Responsible for negotiating sales conditions

Plant
Produces goods, renders services, or makes goods available for distribution

Storage location
Place where stock is physically kept within a plant

Shipping point
Fix location that carries out shipping activities
-4-

AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Break
Distribution flow
Billing and reporting
End

-5-

Overview processes in sales and distribution

-6-

Sales order entry

Sales order creation based on master data
Customer
Material
Prices

see further for details

During creation, you have to enter

Sales organisation
Customer
Material and quantity
Delivery date

and the rest is determined automatically in background

-7-

Sales order entry: background

Credit check
Warning / block order

Automatic pricing
Availability control
Creation documents (output)
Order confirmation
Use of texts from customer / material

Incompletion check
payment terms
pricing
Taxes
-8-

Sales order entry : availability check

ATP

-9-

Sales order entry: header and item

customer
materials

Customer material number

- 10 -

Sales order entry: pricing

Price is determined automatically

- 11 -

Sales order entry: order confirmation

Article details

Price details

Delivery address

- 12 -

AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Distribution flow
Billing and reporting
End

- 13 -

Overview processes in sales and distribution

- 14 -

Delivery-Shipping Processing Overview

Sales
order

Sales order

Goods issue

Delivery

Create delivery

Delivery note

Picking list

Update stock
Post general ledger

- 15 -

Picking

Delivery creation
Checking list: for which orders deliveries need to be created to
deliver goods in time
No more extra data need to be entered automatic creation
Picking list is printed automatically:
When to get the goods and how much
Add name of carrier and license number
Add number and type of pallets

- 16 -

Output picking list

License number

Name of carrier

Loading date
Materials

Pallets

- 17 -

Administrative update delivery

Enter picking details in SAP
Post goods issue

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Output delivery note

After goods issue, the delivery note is printed

- 19 -

Goods issue for deliveries

Posting goods issue :
automatically adapts stock
levels
automatically adapts stock
accounts
updates the status in all related
sales documents and in the
delivery document.
Reduces the requirements
automatically updates the billing
due list

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AGENDA : SD sessions
SD Overview organizational entities
Order entry flow
Distribution flow
Billing and reporting

- 21 -

Overview processes in sales and distribution

- 22 -

Billing: invoice creation

- 23 -

Billing: effects of creating an invoice

Invoice

Creating an invoice:

Custom
er
Credit
Record

A/R
X

automatically creates an accounting

document that updates the general
ledger account for revenue.
updates the status in all related
sales, delivery, and billing
documents.

Profitability Analysis

Sales Information System

Delivery
Sales order

updates the customers credit

record.
updates sales statistics for the
Sales Information System.
updates controlling elements such
as profitability analysis and profit
center accounting.

- 24 -

Invoice

Details delivered goods

Payment terms

- 25 -

Document flow
Quotation

Order

Delivery

Invoice

Returns

Delivery

Credit
for returns

Document flow of an order

Quotation
. Order
. . Delivery
. . . Invoice
. . Returns
. . . Returns delivery
. . . . Credit for
. returns
.
.
- 26 -

Reporting: sales information system

Additional
Information
-Material master
-Customer master
-Documents

Customer analyses
Sales org billed qty billed value

Drill down
by customer

Drill down
by period

0800

Customer

billed qty

BELLO
DIA

300
200

Customer BELLO
Month
billed qty
Feb 05
Mar 05

500

100
200

3000

billed value
1800
1200

billed value

Functions
-Drill down
-Filters
-ABC Analysis
-Graphics
-

600
1200

and lots of other possibilities to report and analyse data

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AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation

- 28 -

Sales order entry

- 29 -

Sales order entry

- 30 -

Sales order entry ship-to

- 31 -

Sales order entry

- 32 -

Sales order entry - pricing

- 33 -

Sales order entry - pricing

- 34 -

Output order acknowledgement

- 35 -

Delivery creation

- 36 -

Delivery creation: materials

- 37 -

Delivery creation: batches per material

- 38 -

Delivery scheduling

- 39 -

Output pick list

- 40 -

Delivery processing

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Delivery processing

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Output delivery note

- 43 -

Billing

- 44 -

Billing

- 45 -

Output invoice

- 46 -

AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation
End

- 47 -

Master data: overview

Customer master data
Material master data
Different price types

- 48 -

Master data customer: business partners

Different types of business partners
Sold-to party
Places the sales order

Ship-to party
Receives the goods

Bill-to party
Receives and verifies the invoices

Payer
Pays the invoices

- 49 -

Master data customer: kind of data

Customer
Company code data

Customer
General data

General data
Name
Address
VAT number
Telephone number

Company code data

Customer
Sales area data

Sales area data

Sales district
Customer group
Incoterms
Business partners

Payment terms
Reconciliation account
- 50 -

Master data material

Integrates data from
- Manufacturing
- Sales and distribution
- Purchasing
- Accounting
-

- 51 -

Master data prices: determination price

Prices are called condition records in SAP

Price procedure linked to order type

Price procedure consist of different
condition types:

Sales price
Discount
Surcharge

Each condition type has different

levels: access sequence level
Data about conditions are stored in
condition records

- 52 -

Master data upload

Special templates for upload
Business partners
Prices
Scales for prices

Optional, mandatory and default fields

Certain checks already build in
Example: lenght postal code

Examples: see excel sheets

- 53 -

AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation

- 54 -

Intercompany
Purchase
Order

IC customer

IC vendor

10
20

MRP

Stock transport
Order (Planned order)
Delivery
Due List

Delivery
Transport planning
Picking
B
A C D
E

Invoice

B
A C D
E

Goods receipt
EDI

IC

receipt

Invoice

- 55 -

Goods issue

AGENDA : SD sessions
Example flow in SAP
Master data
Intercompany flow
Transportation
End

- 56 -

Transportation : Objective
= Assign transport costs to outgoing logistical flows
integrated profitability analysis
analysis on customer, organisational or product level
(MIS)
tool for invoice checking

- 57 -

Transportation : Principles
Shipments = group of deliveries loaded on one truck.
Shipments serve as a basis for a shipment cost
document.
Shipment costs are calculated using transport price
conditions, maintained in the system.
Shipment costs will be transfered as provisions on
transport purchase orders, which are used for
transport invoice checking and registration.

- 58 -

Transportation : Diagram (1)

Order
Delivery

Shipment

Transport
Conditions
Shipment Cost
Invoice

Transp. Purch. Order

Transport
Invoices

- 59 -

Transportation : Diagram (2)

SD
TRANS

Order
Delivery

Shipment

Transport
Conditions
Shipment Cost
Invoice

MM

Transp. Purch. Order

Transport
Invoices

- 60 -

Transportation : Background creation

of shipments and shipment costs
Shipments and shipment costs plus transfer to transport
purchase orders are created automatically by a daily
backgroud job running at night.
4 transport categories: Ex works, Customer,
Intercompany and Intracompany transports.
Posted deliveries are daily grouped into shipments per
carrier, shipping point and transport ID.
Delivery must include all essential information : ship-to,
incoterm, carrier, transport ID.

- 61 -

Transportation : Diagram (4)

SD
TRANS

Order
Delivery

Shipment
Inter

- Ship-to
- Carrier
- Shipping point
- Transport ID
- Incoterm

Invoice

MM

Cust

Intra

Exw
Transport
Conditions

Shipment Cost
Inter

Cust

Intra

Transp. Purch. Order

Inter

Cust

Transport
Invoices

Intra

- 62 -

Transportation : Transport purchase

orders
Validity period = month
Tranport purchase orders for the coming month are
created at the end of the current month.
Creation by means of a special transaction, based on a
text file, which can be reused every month.
Closed monthly but invoice registration remains
possible.

- 63 -

Transportation : Transport conditions

According to meet different ways of transport pricing (fix,
per CU, per Kg, ...) , there are :
different pricing conditions,
having different calculation bases (shipment, delivery
based),
which can be set up at different (geographical) levels
(customer, department country).
Both pricing conditions and level are called upon by a
search strategy working with priorities.

- 64 -

Transportation : Transport conditions

- 65 -

Transportation : Follow up
Daily follow up control reports:
all deliveries in a shipment?
all shipments costed?
shipment cost correctness
shipment cost transfer
provisioned transport costs vs received invoices
Manual creation/modification possible

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Questions

- 67 -

Questions

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