1. Sales and Distribution (SD)
Version 4.1
July 2007
Unit 18
Sales and Distribution (SD)
- Transactions -
© SAP AG and The Rushmore Group, LLC 2007

2. Business Process Integration
Version 4.1
Business Process Integration
July 2007 SD
Transactions
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

3. Version 4.1
Transaction Data
July 2007
Includes internal and external exchanges that describe business activities
Unlike master data, aggregate transactional data is dynamic – each transaction is unique
Master data does not change very often
Org data – should not change
Transaction data (application data) – changes every transaction
Transaction data uses/comprised of the master data, rules, and org data.
Every transaction has an audit trail.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

4. ERP Client / Server Integrated Business Solution
Version 4.1
Sales and Distribution (SD)
July 2007
ERP FI
Financial
Accounting CO
Controlling PS
Project
System WF
Workflow IS
Industry
Solutions MM
Materials
Mgmt. HR
Human
Resources SD
Sales and
Distribution PP
Production
Planning QM
Quality PM
Plant Maintenance SM
Service
Client / Server
Integrated Business
Solution EC
Enterprise AM
Fixed Assets
Green ones (and blue): Logistics
Start out with sales and distribution
Yellow HR was added later in SAP’s life (1990)
Red: Tracking side of house. (Financials)
Purple:Workflow is the least understood by faculty and students
Allow the movement of information in the enterprise to the people who need it.
(e.g. Credit limit – s, updates)
Industry Solutions: Each install is tracked by SAP and the configuration is monitored by industry. This way SAP knows the whole set of answer of how industries works with their best business practices.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

5. Document Types Inquiry Quotation Returns Contract Sales Order
Version 4.1
Document Types
July 2007
Inquiry
Quotation
Returns
Contract
Sales Order
Cash Sales
Consignment
Scheduling
Agreement
Rush Order
Debit Memo
Returnable
Packaging
Credit
Memo
These are all documents types and they have their own processing.
Sales-related business transactions are recorded in the system as sales documents. These are grouped into four categories:
Pre-sales documents: inquiries and quotations
Sales orders
Outline agreements, such as contracts and scheduling agreements
Customer problems and complaints, leading to free-of-charge deliveries and credit memo requests
If your particular business processes require it, you can process deliveries and billing documents directly from a sales document. In addition, some sales documents, such as cash sales and rush orders automatically trigger the creation of subsequent delivery and billing documents.
You can represent pre-sales business processes in the system using the functions for inquiries and quotations. Customer inquiries and quotations to the customer can be entered and monitored.
For example, a customer inquires whether you have a certain product in your warehouse, how much it will cost, or whether the product will be available for a certain date. The inquiry is therefore a request from the customer for you to provide him with a sales quotation.
The sales order is a contractual agreement between a sales organization and a sold-to party about delivering products or providing a service for defined prices, quantities and times.
If the customer complains that the price was miscalculated (for example, too high) you request a credit memo for the appropriate sum, and you do not take the goods back.
In a rush order transaction, the customer picks up the goods or you deliver the goods on the same day as the order is placed. In the standard system, when you save this sales document type, a delivery is automatically created and billing is related to the delivery.
Cash sales is an order type for when the customer orders, picks up and pays for the goods immediately. The delivery is processed as soon as the order has been entered. A cash invoice can be printed immediately from the order and billing is related to the order. Receivables do not occur for the customer as they do for rush or standard orders, because the invoice amount is posted directly to a cash account.
You can create a debit memo request if the prices calculated for the customer were too low (for example, if the wrong scale prices were calculated). The debit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.
The system uses the debit memo request to create a debit memo.
A return is a sales document used in complaints processing for when a customer sends goods back.
Consignment goods are goods which are stored at the customer location but which are owned by your company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods which are not required.
Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.
Returnable packaging consists of materials that are stored at the customer location but which remain the property of your company. The customer is only required to pay you for the returnable packaging if he does not return it to you by a specified time. Using this function you can, for example, process euro-pallets. You can also use it to resell returnable packaging to a third party. Since stocks of returnable packaging form part of your valuated stock even when they are at the customer site, you must manage them in your system.
Customer contracts are outline customer agreements that display when sales materials or services are sold within a certain time period.
A customer scheduling agreement is an outline agreement with the customer containing delivery quantities and dates. These are then entered as schedule lines in a delivery schedule. You can either create schedule lines when you create the scheduling agreement or you can create them later.
You fulfill a scheduling agreement by creating the deliveries in the schedule as they become due. You process deliveries for a scheduling agreement in exactly the same way as you process a normal delivery. After you have carried out the delivery, the system updates the Delivered quantity field in the scheduling agreement item with the delivery quantity. The following graphic shows the document flow for scheduling agreements.
If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a discount was forgotten), you can create a credit memo request. The credit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

6. Order Processing Functionality
Version 4.1
Order Processing Functionality
July 2007
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
During sales order processing, the system carries out basic functions, such as:
Monitoring sales transactions
Checking for availability
Transferring requirements to materials planning (MRP)
Delivery scheduling
Calculating pricing and taxes
Checking credit limits
Creating printed or electronically transmitted documents (confirmations and so on)
Depending on how your system is configured, these functions may be completely automated or may also require some manual processing. The data that results from these basic functions (for example, shipping dates, confirmed quantities, prices and discounts) is stored in the sales document where it can be displayed and, in some cases, changed manually during subsequent processing.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

7. Version 4.1
Delivery Scheduling
July 2007
Automatic scheduling of essential shipping activities
Calculated using defined activity times
Resulting in scheduled activity dates
Determined using backward and forward scheduling rules
During order entry, each schedule line for an item can contain a requested delivery deadline. The goods should arrive at the customer on this date. At the order processing stage, the system can automatically schedule when the essential shipping activities such as picking, loading and transporting must be started so that the requested delivery date can be kept.
The terms used in scheduling are defined below. You must distinguish between
times (time duration) needed to carry out certain activities
dates that are calculated on the basis of these times
Times
Values based on past experience of the shipping department are entered in the system in the form of transit times, loading times, pick/pack times, and transportation lead times:
The transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route.
The loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material.
The pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item.
The transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.
The following deadlines are of importance for delivery processing:
You must start picking and packing activities on the material availability deadline. This deadline must be selected early enough in advance so that the goods are ready by the given loading deadline.
The transportation scheduling deadline is the date on which you must start to organize the transportation of the goods. This deadline must be selected early enough to ensure that the means of transport is available by the loading deadline.
The loading deadline is the date on which the goods must be available for loading and on which all vehicles that are required to ship these goods must be ready for loading. After the time required for loading the goods (loading time) has expired, goods issue can be carried out.
The goods issue deadline is the date on which the goods leave the company in order to arrive punctually at the customer location.
The delivery deadline is the date on which the goods are to arrive at the customer location. The difference between the goods issue deadline and the delivery deadline is calculated from the transit time required for the route between the delivering plant and the customer.
The delivery deadline can be the customer's requested delivery deadline or the confirmed delivery date (that is, the earliest date on which you can deliver goods to the customer).
If backward scheduling determines a date in the past as the date on which a schedule line becomes due for shipping or if the material will not be available on the date calculated, the system automatically carries out forward scheduling to determine the earliest possible shipping deadline.
For example, starting from the current date, the system calculates the loading deadline, the goods issue deadline, and then the confirmed delivery date. It does this by adding together the shipping times mentioned above.
When you change a sales document, such as adding schedule lines or rescheduling, the system carries out delivery scheduling for all the schedule lines, new and old. Because the material availability date lies in the past for backlog schedule lines, the system performs forward scheduling. This may have the undesired affect of the system rescheduling lines that may have already been confirmed.
You can specify for each sales document type that the system is to schedule deliveries only backwards. With no forward scheduling, you can better recognize backlogs in production and the customer receives goods on time.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

8. Delivery Scheduling – (continued)
Version 4.1
Delivery Scheduling – (continued)
July 2007
Structure of sales documents
Header
Line Item # 1
Schedule Line # 1
Schedule Line # 2
All sales documents have basically the same structure. They are made up of a document header and any number of items. The items can in turn be divided into any number of schedule lines.
Header data
The general data that is valid for the entire document is recorded in the document header. For example,
Number of the sold-to party
Number of the ship-to party and the payer
Document currency and exchange rate
Pricing elements for the entire document
Delivery date and shipping point
Item data
Whereas data in the document header applies to all items in the document, some data applies only to specific items. This data is stored at item level and includes the:
Material number
Target quantity for outline agreements
Number of the ship-to party and the payer (an alternative ship-to party or payer can be defined for a particular item)
Plant and storage location specifications
Pricing elements for the individual items
Schedule line data
An item consists of one or more schedule lines. The schedule line contains all the data that is needed for a delivery. For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month so you need to schedule two deliveries. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. In sales documents where delivery data is not relevant, for example, contracts, credit and debit memo requests, the system does not create any schedule lines.
Data recorded in the schedule lines includes the:
Schedule line quantity
Delivery date
Confirmed quantity
Line Item # 2
Schedule Line # 1
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

9. Delivery Scheduling Terminology
Version 4.1
Delivery Scheduling Terminology
July 2007
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
The transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.
The pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item.
The loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material.
The transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

10. Backward Scheduling Transit Time (2 days) (1 day) Pick & Pack 2nd 3rd
Version 4.1
Backward Scheduling
July 2007
Requested
Delv. Date
Goods
Issue
Loading
Material
Availability
Order
Date
Transp.
Sched.
Transit
Time
(2 days)
(1 day)
Pick & Pack
2nd
3rd
4th
5th
6th
1st
Backward scheduling calculates backward from the requested delivery date:
In this example the requested date is the 6th
Transit time is 2 days – 4th
Loading time is one day – 3rd
Pick and pack and transportation scheduling can be done simultaneously: the longer of which is 2 days – 1st
Pick and pack and trans scheduling time happen concurrently
Times
Values based on past experience of the shipping department are entered in the system in the form of transit times, loading times, pick/pack times, and transportation lead times:
The transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route.
The loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material.
The pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item.
The transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.
If you have not maintained any working times in the shipping point, the unit for the time specification is the day (workday = 24 hours) with two decimal places
If you have maintained the working times in the shipping point, the unit for the time specification is hours, minutes, and seconds.
You can also enter the factory calendar of the forwarding agent for the route when you define the transit time. This factory calendar can be different from your company's calendar. For example, the forwarding agent might operate a 6-day-week.
You may only enter the transit time in days with two decimal places, even if you have maintained the working times in the shipping point.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

11. Forward Scheduling Transit Time (2 days) Loading (1 day) Transp.
Version 4.1
Forward Scheduling
July 2007
Transit
Time
(2 days)
Loading
(1 day)
Transp.
Sched.
New
Delv.
Date
1st
3rd
4th
5th
6th
2nd
Pick & Pack
Time (2 days)
7th
Requested
Goods
Issue
Material
Availability
Order
If you cannot backward schedule the system will forward schedule for you. The material is available on the 2nd
Simultaneously we can schedule the longer of pick and pack and scheduling time: 2 days: 4th
Loading time is 1 day: 5th
2 day delivery time: the customer can have the goods on the 7th.
Times
Values based on past experience of the shipping department are entered in the system in the form of transit times, loading times, pick/pack times, and transportation lead times:
The transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route.
The loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material.
The pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item.
The transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.
If you have not maintained any working times in the shipping point, the unit for the time specification is the day (workday = 24 hours) with two decimal places
If you have maintained the working times in the shipping point, the unit for the time specification is hours, minutes, and seconds.
You can also enter the factory calendar of the forwarding agent for the route when you define the transit time. This factory calendar can be different from your company's calendar. For example, the forwarding agent might operate a 6-day-week.
You may only enter the transit time in days with two decimal places, even if you have maintained the working times in the shipping point.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

12. Availability Check Determines the material availability date
Version 4.1
Availability Check
July 2007
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
When you enter a sales order, you can only confirm the delivery of the goods for the required delivery date if the goods are available for all the necessary processing activities which take place before delivery:
The shipping department must ensure that freight forwarding or another shipping company is advised early enough so that sufficient time remains for packing and loading to be carried out. An availability check can be carried out on the deadline date for availability for the goods.
The procurement department must ensure that the production and purchasing departments are advised of inadequate stock quantities so that goods can either be produced punctually or ordered. Sales transfers the information on materials ordered as requirements to material requirements planning. Requirements are planned outward movements of stock. The transfer of requirements informs production that goods must be produced, or advises purchasing that purchase requisitions have been created for which purchase orders must be created and sent to the suppliers. An availability check can only be carried out if these requirements are transferred.
Requirements in sales and distribution (sales requirements and delivery requirements) result from all transactions which forward a requirement to Materials Management (MM) or to Production Planning (PP). For example, this could include sales orders or deliveries and quotations as well. Sales and distribution requirements reduce existing stock or inward movements of stock on the material availability date to ensure that other outward movement of stock elements cannot access the quantity reserved in this way.
If the goods ordered by the customer are not available on the requested date, the system branches automatically during sales document processing to a further screen where delivery proposals are offered for selection. The system determines these proposals on the basis of the availability situation. This screen also provides you with information on the scope of the check, the current ATP quantity, and the availability situation across all plants.
One-time delivery on the requested delivery date
In this section, the system checks whether the requested delivery date can be kept to. If stock of the material is available to make a delivery on the requested delivery date, the stock quantity is confirmed here. If there is no stock available, confirmed quantity zero is displayed.
Complete delivery
In this section, the system checks whether there will be sufficient stock for complete delivery at a later date:
If there is sufficient stock available at a later date to cover the required quantity in the sales document, the system proposes the date here.
If the system determines that complete delivery cannot be made at a later date, no date is proposed in this section.
When availability is checked including replenishment lead time, the date which is proposed in this section is the date on which the replenishment lead time period ends if the stock before the end of replenishment lead time does not cover the order quantity.
When availability is checked excluding replenishment lead time, the system bases its calculations on the stock and the planned inward movements of stock.
Delivery proposal
In this section, the system checks whether and for which dates partial deliveries can be made. Partial deliveries are displayed for different dates. These dates are based on the planned inward and outward movements of stock.
During an availability check which takes replenishment lead time into account, the date on which replenishment lead time ends is displayed if insufficient stock means that no partial deliveries can be made before replenishment lead time ends.
During an availability check which does not take replenishment lead time into account, the system displays the dates on which partial deliveries can be made with the available stock.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

13. Availability Check – (continued)
Version 4.1
Availability Check – (continued)
July 2007
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
The following elements can be included in the availability check:
Stock
safety stock
stock in transfer
quality inspection
blocked stock
Inward/Outward movement of goods
purchase orders
purchase requisitions
planned orders
production orders
reservations
dependent reservations
dependent requirements
sales requirements
delivery requirements
Requirements in sales and distribution (sales requirements and delivery requirements) result from all transactions which forward a requirement to Materials Management (MM) or to Production Planning (PP). For example, this could include sales orders or deliveries and quotations as well. Sales and distribution requirements reduce existing stock or inward movements of stock on the material availability date to ensure that other outward movement of stock elements cannot access the quantity reserved in this way.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

14. Transfer Requirements to Material Requirements Planning
Version 4.1
Transfer Requirements to Material Requirements Planning
July 2007
Ordered quantities are passed to Material Requirements Planning
Controlled by the schedule line category
Blocking of documents can affect requirements passing — delivery block
You can pass on data planned in Flexible Planning or Standard SOP to Demand Management.
Demand Management determines the requirement dates and requirement quantities for important assemblies and specifies the strategies for planning and producing/procuring finished products. The result of Demand Management is the demand program. The demand program differentiates planned independent requirements and customer independent requirements. It gives the information needed in MPS and MRP for planning at SKU level. The placing of sales orders eventually consumes planned requirements and triggers updating to the Sales Information System. This actual data can then be used as input for future sales planning.
Schedule Lines
Together with the sales document types and item categories, the schedule line categories contained in the standard SAP ERP System cover the most common business transactions.
The SAP System can only copy items of a sales document to a delivery if they have schedule lines. The control of the schedule lines depends on the schedule line category.
You must define schedule line categories or adapt them to your requirements.
You must allocate the schedule line categories to the item categories depending on the MRP type.
If necessary, you must define schedule line types for scheduling agreements.
You can block sales orders for the following subsequent functions:
For shipping
The system does not let you create a delivery for a sales order that is blocked for shipping. You receive an error message telling you that the order is blocked for delivery.
For billing
The system does not allow you to create a billing document for a delivery that is blocked for billing in the underlying sales order. When you try to create individual billing documents, the system enters a message in the relevant log. In the case of collective processing of billing documents, the delivery is not included in the billing due list.
This blocking can prevent the passing of requirements to MRP.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

15. Pricing Highly touted “world-class” functionality
Version 4.1
Pricing
July 2007
Highly touted “world-class” functionality
Very easily tailored to meet business needs
A very robust module in SAP
Gross to net pricing for material
The pricing in SAP is world class. It functionality is both wide and deep enabling users to program varied pricing procedures to meet individual organizations needs.
The pricing is extendible: You can attach, or extend, external pricing programs or elements outside SAP for pricing
It also allows Gross to Net pricing: This allows discounts and reductions from the ‘master’ price.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

16. Credit Check Efficient means to implement credit management
Version 4.1
Credit Check
July 2007
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
A large number of outstanding receivables or bad debts can have a not inconsiderable impact on company performance. Using Credit Management, you can minimize your credit risk by defining a credit limit for your customers. This is especially important if you do business with customers in financially unstable sectors or countries, or trade with countries that are politically unstable or that adopt a restrictive exchange rate policy.
Integration
If you implement the Accounts Receivable (FI-AR) application component to manage your receivables, but a non-SAP system for sales and distribution processing, Credit Management enables you to assign a credit limit to each customer. When you post an invoice (in FI-AR) the system then checks whether the amount exceeds the credit limit. Facilities like the credit master sheet or early warning list help you monitor the customer’s credit situation.
If you implement both the Accounts Receivable (FI-AR) and Sales and Distribution (SD) application components, you can specify in Customizing when (at the point of order, delivery, goods issue and so on) and to what extent a check on the customer’s credit limit is to take place.
You can define automatic credit limit checks according to a range of criteria and in line with your company’s requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on).
The credit representative is automatically alerted to a customer’s critical credit situation as soon as order processing starts.
The relevant employees can be automatically notified of critical credit situations via internal mail.
Your credit representatives are able to check a customer’s credit situation quickly and reliably, and, in line with the appropriate credit policy, to decide whether the customer should be granted credit.
Using Credit Management you can work in distributed systems. A distributed system is one with central financial accounting and non-central sales and distribution on several sales and distribution computers.
Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.
For example, if your credit management is centralized, you can define one credit control area for all of your company codes.
If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.
Credit limits and credit exposure are managed at both credit control area and customer level. Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.
Credit limits and credit exposure are managed at both credit control area and customer level.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

17. Shipping Point and Route Determination
Version 4.1
Shipping Point and Route Determination
July 2007
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
In this step, you define the shipping points in your company or edit shipping points that already exist. In order to adapt the functional scope of a shipping point to the organization in your company, you should process the following check list:
The shipping point is the top level in the organization for shipping.
A shipping point can be allocated to several plants.
A shipping point can be divided into several loading points.
A delivery is always initiated from exactly one shipping point. Thus, all items of a delivery belong to one shipping point. Groups of deliveries also belong to exactly one shipping point.
You can influence delivery scheduling via allocation to departure zones.
The shipping point can be proposed automatically during order processing depending on the plant, loading group and shipping condition.
A shipping point has an address.
The shipping point is used as a selection criterion for lists of deliveries and the work list deliveries.
The shipping point is used as a selection criterion for processing deliveries like printing, picking or goods issue.
You can determine the printer destination for messages differently for every shipping point on account of shipping documents.
Using routes, you can combine sales order items according to shipping criteria.
The system determines routes automatically for a sales order item and can repeat the procedure for a delivery (see section Route determination).
In order to define routes, proceed as follows:
Define the modes of transport.
Define the shipping types.
Define the transportation connection points and maintain the relevant data on the detail screen.
Define the routes and route stages.
You can also maintain the route stages for several stages.
The SAP System determines routes automatically for each sales document item. It determines the itinerary and mode of transport in shipping.
Routes are determined depending on the following criteria:
Country and departure zone (departure zone of the shipping point)
Shipping conditions agreed in the sales order The shipping condition is defined in shipping point determination.
Transportation group of the material
Country and transportation zone (receiving zone) of the ship-to party
The SAP System copies the route from the sales document item into the delivery at header level.
To define route determination, you must edit the following points:
Define transportation zones for each country. These transportation zones can be either departure zones for the shipping point or receiving zones for the ship-to party.
Assign the departure zones to the shipping points.
Define transportation groups for the materials.
Specify the routes to be selected according to the given criteria in sales processing.
Define the delivery types for which route determination should be repeated and set the necessary indicator in the appropriate delivery types.
Define the weight groups.
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

18. Foreign Trade and License Processing
Version 4.1
Foreign Trade and License Processing
July 2007
Predefined trade areas — NAFTA, EU
Automated reporting for trade areas
Automated controls
License management
Embargo lists
Control by customer, country, product, point in time
As countries move increasingly toward a global market economy, businesses become more involved in and influenced by foreign trade. This affects not only the vendor and customer relationship, but that of foreign subsidiaries within a single company.
With this opening of market opportunities come regulations, licenses, import tariffs, and an increasing amount of paperwork required by government agencies and other legal entities.
SAP Retail provides extensive support for world-wide export/import trade as well as deliveries within specific trade areas (such as the EU or NAFTA), thus automating the burdensome paperwork and freeing your shipping and receiving departments to concentrate on moving merchandise quickly. ERP functionality includes:
Maintenance of data specific to foreign trade in the following master records:
Customer master
Vendor record
Article master
Purchasing info record
Copying data specific to foreign trade into purchasing and sales documents
Data interface for the retrieval of export-specific data
Export control
Government reporting
Preference procedures
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

19. Version 4.1
Document Flow
July 2007
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).
The sales documents you create are individual documents but they can also form part of a chain of inter-related documents. For example, you may record a customer’s telephone inquiry in the system. The customer next requests a quotation, which you then create by referring to the inquiry. The customer later places an order on the basis of the quotation and you create a sales order with reference to the quotation. You ship the goods and bill the customer. After delivery of the goods, the customer claims credit for some damaged goods and you create a free-of-charge delivery with reference to the sales order. The entire chain of documents – the inquiry, the quotation, the sales order, the delivery, the invoice, and the subsequent delivery free of charge – creates a document flow or history. The flow of data from one document into another reduces manual activity and makes problem resolution easier. Inquiry and quotation management in the Sales Information System help you to plan and control your sales.
The system always updates the preceding documents. However, if you also want it to update the subsequent documents in the document flow, you must make the relevant settings in Customizing for copying control. Copying control and documents flow are defined for documents in:
Sales support
Sales
Shipping
Transportation
Billing
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007

20. Unit 18 – Exercises Create Sales Order Check Stock Status
Version 4.1
Unit 18 – Exercises
July 2007
Create Sales Order
Check Stock Status
Create Delivery Note for Sales Order
Pick Materials on Delivery Note
Post Goods Issue
Bill Customer
Post Receipt of Customer Payment
Review Document Flow
© SAP AG and The Rushmore Group, LLC 2007
July 2007
© SAP AG and The Rushmore Group, LLC 2007