1. Sales and Distribution Overview
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Right Solution, Right Time, Right Price

2. Business Process Workshop
The objectives of the Sales and Distribution Overview workshop is to:
Provide an overview of the Sales and Distribution Business Process
Demonstrate how SAP will be used to manage this process

3. Agenda Topics: Master Data in Sales & Distribution
The SD Business Process
Collection
Reporting and Analysis

4. I. Master Data in SD

5. Master Data in Sales & Distribution
Master Data is centrally stored (shared across application modules) and processed to eliminate data redundancy.
These three master data records are critical to sales order processing:
Customer Master
Material Master
Pricing Condition
The material master is equivalent to the item master in BOSS. We need to get used to calling our product materials rather than items

6. Customer Master Record Consists of the following views:
General
Data
There are three views on the customer master: General data contains company name/address and phone information, while company code is mainly used for financial purposes. Sales area used to define sales-related information.
Company Code
Data
Sales Area
Data

7. Sales & Distribution data
Customer Master
The customer master contains all customer-related data necessary for processing orders, deliveries, invoices, quotation and customer payments.
A customer number will be automatically assigned to a new customer at the time of customer creation.
99% of our customers will belong to one Sales Area. If a customer belongs to more than one Sales Area, SAP will prompt you to choose one at order entry.
A customer number is required for all quotes, inquires and order related transactions. All active customers from BOSS will be loaded into SAP prior to go-live. We will no longer have intelligent numbering or sort names in our customer numbers, since there will be one customer number regardless of the products/services that the customer purchases. Customers can be searched using wildcards in SAP ex: mag*, and all choices will be shown right on the screen. In addition, customers can be searched by address, city, state. Customer setup will be limited to a select group of individuals.
The customer number will be a 7-digit number in most cases, except for Yaskawa subsidaries (YEC, Motoman)
General data
Sales & Distribution data
Company code data

8. Customer Master Record
Client
General data
Bank details
General data
Company code - Y012
Reconciliation acct
Payment terms NT30
Sort key 001
Sales district 00001
Sales office 01
Price group 01
Company code data
Sales data
General data is shared and can be accessed through the financial and sales views of the customer
Accounting data
Sales area data

9. Customer Master View Field Groups Address Communication
Account Control
Tax Information
Reference Data/ Area
Control Data
Address
Communication
Tax Jurisdiction
View Field Groups
General
Data:
Recommend showing SAP live and show the 3 views and how each view is broken down into several tabs or categories of data (as shown above) Each tab has many fields.
Approximately 35 different fields will be used when we go-live.
Marketing
Not implemented in current Stage

10. Customer Master Not implemented in current Stage Contact Person
Unloading Point
Customer Factory Calendar
Unloading
Points
View Field Groups
Payment
Transactions
Bank Details
Payment Transactions
General
Data:

11. Customer Master View Field Groups Account Management Account
Interest Calculation
Reference Data
Account
Management
Payment Data
Automatic Payment Transactions
Payment Advice Notes
Payment
Transactions
Export Credit Insurance
Insurance
Dunning Data
Correspondence
Payment Notices To
Company
Code Data:

12. Customer Master View Field Groups Sales Office Sales Group
Customer Group
Orders
Delivery Priority
Delivering Plant
Partial Delivery Indicator
Shipping
Terms Of Payment
Tax Classification
Billing
Sales and
Distribution
Data:

13. Customer Master Forwarding Agent Sales Employee 3rd Party Rep
View Field Groups
Partner
Function
Sold To Customer
Ship To Customer
Bill To Customer
Payer Customer
Sales and
Distribution
Data:
Partner Function
Customers are also known as partners. The various partners need to be defined within the customer master, these partner functions include sales employee, forwarding agent, and 3rd party commissible rep (if applicable).

15. Business Partners Sold-to party Ship-to party Bill-to party Payer
Customer master records can be defined as business partners. The following four partners are mandatory in the sales order (when creating a Sold-To customer all 4 are automatically created):
Sold-to party
Ship-to party
Customer
Master
Sold-to party is the customer who is responsible for the purchasing of goods/services
Ship-to party is the customer who is receiving the goods and servicing (often used for drop shipments)
Bill-to party is the customer who is where the billing document (invoice) is to be mailed
Payer is the party who is responsible for payment of the billing document (usually the same as the bill-to)
Bill-to party
Payer

16. Account Group Create sold-to party ACCOUNT GROUP Field selection
Customer :
Sales organization : 0010
Distribution Channel : 10
Division : 02
Account Group : 0001
All customers are assigned at a account group and a sales area.
Each different customer type has a different account group so that searches can be performed based on if the customer is a sold-to, ship-to, bill-to or payer. YEA has also set up a fifth account group, related party, to separate sales from our subsidiaries from sales from our true customers.
ACCOUNT GROUP
Field selection
Number Assignment
One-time account: yes/no
Output Proposal
0001 Sold-to party
0002 Ship-to party
0003 Payer
0004 Bill-to party
Z001 Related Party

17. Material Master
The material master contains all data required to define and manage material.
It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting, and other departments.
The material master is used as a source of data for sales order processing throughout the customer order management cycle.
General data
Purchasing data
Accounting data
Sales data
Manufacturing data
(etc.)
Again, mention that the material master is equivalent to the item master.

18. Go to Material Master to review – There are many views and more fields than today in the material master

19. Every material must have a material pricing group – allows sales to group products together with similar pricing conditions

20. Pricing Condition Record
Condition Type: PR00
Condition types determines selling price of materials
Automatically copied into Sales Order
Pricing condition records exist in SD. Material price will be set up in SD and can be found within an inquiry, quotation or sales order, or by displaying pricing conditions.
Pricing Master Records are located in condition types in Sales and Distribution. Material Price (known as List Price in BOSS) is no longer maintained in the Material Master Record.

21. Discounts/surcharges
Prices and Discounts
Conditions
Prices
Discounts/surcharges
Price list
Material price
Customer/material
Customer
Customer/Material pricing group
3rd Party Commissions
There will be 3 types of price conditions set up in SAP.
Material price = List price
Customer/material = Net price
Price list (new) – allows us to use the same sell price a group customers (ex: Honda), without having to set up customer/material records for each customer.
Discounts will either be set up on the customer level or the customer/mat price group level as they are today. 3rd party commissions % and accruals will be set up within pricing.
Pricing is carried out automatically based on predefined prices, discounts, and surcharges. Prices can be manually overrode on the sales order (when applicable).

22. Sales & Distribution Overview
Review Questions
In SAP, a customer is also referred to as this.
What is the means through which material/services reach the customer called ?
What is the combination of the sales organization/distribution channel and division referred to as ?
What are the 3 views in the customer master called?
Where is the material price (known as list price today) stored in SAP?
What is the physical location where material is managed called?
Review Questions:
1. Name one of the 3 critical types of Master Data on a sales document?
Customer Master
Material Master
Pricing Conditions

23. II. The SD Business Process

24. Business Processes Cycle
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Payment
Delivery
Billing
Billing

25. Business Process Summary
Pre-Sales S S A A L L M M E E
Contract
Contract
Quotation
Quotation
Inquiry A A S S T T
Sales Order
Processing E E I I
Order R R N N I I F F
Inventory Sourcing A A O O L L R R
Delivery S S M M
Delivery
Delivery
Picking
Picking
Goods Issue
Goods Issue A A M M T T A A I I N N
Billing O O A A
Invoice N N G G E E S S
Customer payment/ Financial Accounting M M Y Y E E S S N N
Accounts
Accounts
Material Stock
Material Stock T T T T
Receivable
Receivable
Account
Account E E M M

26. Review of Business Processes
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Delivery
Payment
Billing
Billing

27. Pre-Sales
Data from
Inquiry…

28. Pre-Sales
Can be used to generate a Quote,
Order,
etc…

29. Sales
Which
can be used to generate a
Sales Order

30. Review of Business Processes
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Delivery
Payment
Billing
Billing

31. Sales Order Processing
Customers place orders
Standard orders normally contain:
Customer and material information
Pricing for each item
Delivery schedules and requirements
Billing information

32. Business Process Flow in SAP
Order
Delivery
Invoice
Payment
Document flow of a sales document
Order 900
. Delivery Picking request
. . GD goods issue: delvy Invoice
. . . Accounting document
Sales documents represent transactions in the system.
They form a chain of related documents.
The entire chain of documents creates the document flow.
The system copies data from one document into another to reduce data entry and make problem resolution easier.

33. Material SGMAH-02BAF41 SH10VA-S50
Creating an Order
Material master
Customer master
Sold-to party
Item 1 2
Material SGMAH-02BAF41 SH10VA-S50
Quantity 10 20
When you create a sales order without reference, the system automatically copies the:
Sold-to party and its partner data from the Customer Master records
Line item or material data from the Material Master record

34. Review of Business Processes
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Delivery
Payment
Billing
Billing

35. Availability Check in Order Processing
Availability check occurs during sales order, rescheduling and delivery processing:
It occurs in the plant determined for the customer/material

36. Availability Checking in SAP
Advantages of the Availability Check:
Real-time status of inventory allocation
Accurate delivery dates
Automatic scheduling
Configurable scope of check for inward and outward movements
Considers lead times

37. Inventory Sourcing Inventory Sourcing determines:
If the product is available (availability checking)
How the product will be supplied:
From stock on hand
By replenishment activities (production order, purchase order)
Make to order
Shipped by an external supplier (3rd Party)
Shipped from another warehouse

38. Backorder Processing
Backorder processing is a manual process of reallocating stock from one sales order to another.
Stock allocated and confirmed for one sales order can be moved manually to another sales order.
You should use an availability check indicator in which requirements are processed individually. This makes the sales order number visible on the backorder processing screen.

39. Review of Business Processes
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Delivery
Payment
Billing
Billing

40. Delivery Warehouse Creating delivery documents Picking Manual Packing
Sales
order
Delivery
document
Creating delivery documents
Picking
Manual Packing
Shipping papers
Goods issue
Updating inventory
Updating general ledger

41. Creating Delivery Documents
Sales Order 1
Customer 1
Sales Order 2
Customer 1
Sales Order 3
Customer 2
Shipping point
Due date
Customer
Delivery
Delivery
The delivery document is used to initiate all activities relevant to shipping, such as picking, packing, and transportation.
A delivery document is created for a shipping point for an order that is due for delivery. The system copies the relevant data from the order.

43. Different Types of Order Fulfillment
Sales order
Delivery
Complete delivery
Delivery
Sales order
Delivery
Partial delivery
Delivery
Sales order
Delivery
Order combination
Sales order

44. Collective Processing in Delivery
Delivery due list
Delivery
Sales order
Sales order
Sales order
Delivery
Sales order
Sales order
Sales order
Delivery
The delivery due list allows you to create more than one delivery at a time. This function can be executed by:
Online processing of the delivery due list
Creating a batch job in the background to be executed during off-peak hours

45. Review of Business Processes
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Delivery
Payment
Billing
Billing

46. Billing Billing supports:
Creating invoices for deliveries and services
Creating credit and debit memos on the basis of requests
Canceling business transactions
Transferring posting data to financial accounting
Invoice

47. Options for Creating Invoices
Invoice split
Sales order
Delivery
Invoice
Delivery
Invoice
Separate invoice
per delivery
Sales order
Delivery
Invoice
Sales order
Delivery
Delivery
Collective invoice
Invoice
Sales order
Delivery
The system can create a separate invoice for each sales order or part of a sales order, an invoice for each delivery, or an invoice for a combination of sales orders and deliveries.

48. Collective Processing in Billing
Billing due list
Invoice
Delivery
Delivery
Delivery
Invoice
Delivery
Delivery
Delivery
Invoice
The billing due list allows you to create more than one invoice at a time. This function can be executed by:
Online processing of the billing due list
Creating a batch job in the background to be executed during off-peak hours
3. Name one of the 3 places automatic availability check takes place?
Sales Order Entry
Rescheduling Processing
Delivery Processing
4. What process is used to process the deliveries in batch?
Delivery Due List

49. III. Collections (Returns / Credit)

50. Review of Business Processes
Sales Order Processing
Sales Order Processing
Inventory
Inventory
Sourcing
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Payment
Delivery
Payment
Billing
Billing

51. Customer Payment Final step of the cycle Customer Payment includes:
Posting payments against invoices
Reconciling differences, if necessary

52. Returns and Credits Overview
Damaged
Return Order Processing
Receipt
Billing
Credit
Memo
Payment

53. When Do Credit and Debit Memos Occur?
Order
Delivery
Billing
Return
order (authorization)
Return Delivery
Credit memo

54. How Are Returns Processed?
Invoice
Return
request
(authorization)
Returns delivery
Credit memo
Sales
Order
Accept returned goods (Post goods issue)
Place in restricted stock
Order reason required to create Return Order
Credit memo created after removing the billing block.
Invoice
Billing block

55. Credit and Debit Memos Credit Memos Debit Memos Credit memo request
Invoice
Credit memo
request
Credit memo
Invoice
Sales
Order
Debit Memos
Billing block
Invoice
Review Questions:
What information is required when entering a return order request?
Order Reason Code
2. What process needs to take place for a Credit Memo to be generated from a Credit Memo Request?
SD documents blocked for billing (release)
3. Who processes the delivery on the return order?
Warehouse management
Debit memo
request
Debit memo
Invoice
Sales
Order

56. IV. Reporting and Analysis

57. Reporting and Analysis in SAP R/3
Standard Reporting
Lists documents and master data
Provides analysis through sorting and totals
Displays details
List Processing
Lists selected documents
Allows you to branch to documents and return to list
Helps organize work
Billing Due List
Delivery Due List
Incomplete Sales Documents List
SAP reporting has been designed to allow the user to view reports right on the screen, instead of having to download to an excel file. Drill-down capability allows you to get details on every level, and even lets you go to the orginal document that was created. Several custom reports will be designed in order to give us further flexibility

58. Initial List Customer Analysis-New Selection: Initial List Key figures
The standard analysis initial list shows key figures according to the characteristics and time period specified.
From this screen, you can access different evaluation functions (e.g., ABC analysis, classification, dual classification, totals curve) to further analyze the key figures.

59. Initial List Customer Analysis-New Selection: Initial List
By double-clicking on an individual customer, you can drill down and view all of the totals by period for this customer.

60. With a double-click, you can drill down
for even more detail.

61. Editing the List You can further edit the list. This example shows:
Customer Analysis-New Selection: Top Five Customers
NOTE: Credit Memos was used due to insufficient data at time of course development.
You can further edit the list. This example shows:
The top five customers (View > Top N)
Other figures (Edit > Choose key figs)

62. Sales & Distribution Overview
Review Questions
When are the 3 times that availability checking occur?
What is the chain of SD documents called?
What information is required when entering a return order request?
What process needs to take place for a Credit Memo to be generated from a Credit Memo Request?
Who processes the delivery on the return order?

63. This course was developed with the assistance of:
Right Solution, Right Time, Right Price