Sales and Distribution Master Data EGS 5620 Enterprise Systems Configuration Spring, 2016

Sales & Distribution Master Data SAP Implementation Sales & Distribution Master Data SAP Implementation

3 Business Process Integration FI MM SD Org Data Rules FI MM SD Master Data FI MM SD FISD MM

4 Business Process Integration SD Org Data SD

5 Sales Organization A sales organization belongs to exactly one company code A sales transaction is linked to only one Sales Organization Functions of Sales Organization: ◦Sells and distributes products ◦Negotiates terms of sales ◦Responsible for these business transactions SAP allows assigning one or more plants to a sales organization.

January Distribution Channels Online Distribution Channel (IN) Wholesale Distribution Channel (WH) US Sales UE##/UW## Distribution channels identify how products and services reach the customer Distribution channels can be assigned to one or more Sales Organizations

7 Division Bicycle Division (BI)Accessory Division (AS) US Sales UE##/UW## It can be assigned to one or more Sales Organizations It is an organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery) It is often used to define product line distribution

8 Sales Area Sales Area comprised of: ◦Sales Organization ◦Distribution Channel ◦Division Used to link together the organizational aspects of sales to customers Also used for statistical analysis

9 Sales Area – (continued) Online Dist Channel (IN) Wholesale Dist Channel (WH) US Sales UE##.UW## Bicycle Division Accessory Division Bicycle Division Accessory Division

10 Shipping and Loading Points A shipping point is the top level in the organization for shipping It usually exists physically in a plant A shipping point can be allocated to several plants It can be divided into several loading points (for more specialized handling) A delivery is always initiated from exactly one shipping point. Thus all items of a delivery belong to one shipping point.

January Shipping Organization Plant P_ _ _ Freight Dock FD_ _ _ Express Dock ED_ _ _ Rail Dock RD_ _ _ Loading Point 3 Loading Point 2 Loading Point 1 Loading Point 4

12 Business Process Integration Master Data SD Three elements of master data are the customer, material and pricing

13 Master Data Core Elements - Customers Material Customer Pricing Master Data

14 Customer Master Customer Master Data is created in Sales Area: Sales Organization Distribution Channel Division US Sales UE##/UW## Distribution Channel – WH/IN Division – BI/AS Sales Area

15 Customer Master - (continued) General Data: Address Sales Data: Sales Customer General Data: demographic data 2. Company Code Data: Accounting information 3. Sales & Distribution Data: Sales information

16 Customer Master A master record must be created for every customer consisting of: 1.General data, 2.Company code data (Financial Accounting-FI), and 3.Sales & Distribution data (Sales and Distribution - SD) Sales/distribution data Sales Shipping Billing Partner Usage Company Code data Account Mgmt Payment transactions Correspondence General data Address Control data Payment transactions

17 General Data – Address Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, Customer Master 1. General Data – Address

18 Customer Master General Data – Control Data Account Control ◦Vendor ◦Authorization ◦Trading partner ◦Group key Tax Information ◦Tax codes ◦Fiscal address ◦Country code ◦City code Reference Data/Area

19 Customer Master General Data – Payment Transactions Bank Details ◦Country ◦Bank Key ◦Account holder ◦Bank Account ◦Control Key ◦Collection

20 Customer Master 2. Company Code – Acct Information Accounting Information ◦Reconciliation Account ◦Sort key ◦Head office Interest Calculation ◦Interest indicator ◦Interest cycle ◦Interest calculation frequency in months ◦Last interest run Reference Data ◦Previous account number ◦Buying group

21 Customer Master Company Code – Payment Transactions Payment Data ◦Terms of Payment ◦Tolerance group Automatic Payment Transactions ◦Payment methods ◦Payment block ◦Alternative payer ◦Grouping key ◦Lockbox

22 Customer Master 3. Sales and Distribution – Sales Sales Order ◦Sales District ◦Sales Office ◦Sales Group ◦Order Probability ◦Item Proposal Pricing / Statistics ◦Price Group ◦Customer Pricing Procedure ◦Price List Type ◦Customer Statistical Group

23 Customer Master Sales and Distribution – Shipping Shipping ◦Delivery Priority ◦Shipping Conditions ◦Delivering Plant ◦Order Combination Partial Delivery ◦Complete Delivery Required By Law ◦Partial Delivery per Item ◦Max Part Deliveries ◦Under/Over delivery Tolerances General Transportation Data ◦Transportation Zone

24 Customer Master Sales and Distribution – Billing Billing Section ◦Subs. Invoice Processing ◦Rebate ◦Price Determination ◦Invoicing Dates Delivery and Payment Terms ◦Incoterms ◦Payment Terms Accounting ◦Account Assignment Group Taxes ◦Tax Classification

25 Customer Master Sales and Distribution – Partner Functions Partner Functions ◦Partner Function (PF) ◦Number ◦Partner Description Partial list of Partner Functions Types ◦SP – Sold-to-party ◦BP – Bill-to-party ◦PY – Payer ◦SH – Ship-to-party

26 Business Partners Sold-to Party Customer who orders can default for all partner functions — sold-to, ship-to, payer, bill- to Primary type of business partner Independent and cannot be linked to other sold-to partners Sold-to Ship-to Bill-to Payer

27 Business Partners Ship-to Party Receive delivery Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer

28 Business Partners Bill-to Party Partner who is delivered the invoice Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer

29 Business Partners Payer Partner who pays the bill Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer

30 Single and Multiple Ship-to Parties Single ship-to Multiple ship-to’s Single payer Payer: 10Bill-to: 10Ship-to: 10 Sold-to: 10 Payer: 10Bill-to: 10Ship-to: 10 Sold-to: 10 Ship-to: 11

January Business Partners Sold-to Bill-to Payer Ship-to Sold-to

32 Master Data Core Elements - Pricing Material Customer Pricing Master Data

33 Standard Pricing Process Standard Pricing ◦Calculates the gross price ◦Then applies –Discounts –Surcharges –Applicable Taxes ◦Calculates the final price Final price = gross price - discounts + surcharges + taxes

34 Cost-Plus Pricing Process Cost-plus pricing ◦Captures the base cost ◦Then applies –Markup –Discounts –Surcharges –Applicable Taxes ◦Calculates the final price Final price = cost + markup - discounts + surcharges + taxes

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 35 Pricing Procedure Pricing procedures are assigned to the transactions for sale order process by defining the following dependencies: ◦ Customer ◦ Sales Document Type ◦ Sales area The pricing procedure will then apply ◦Prices (Gross) ◦Discounts & Surcharges ◦Freight ◦Taxes

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 36 Pricing Procedure – (continued) The sequence of activities for pricing process: 1. Define pricing procedure based on sales area, sales document, and customer (e.x. RVAJUS). 2. Define condition types (e.x. PR00) for each of the price elements, such as prices, discounts, and surcharges. 3. Define the access sequences (e.x. PR02) that enable the system to find valid condition records. 4. Searching for price according to a provided access sequence

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 37 Select a line Item in Sales Order Determine a Pricing Procedure Contains List of Condition Types Point to Access Sequence Provides the Search Order for Pricing Sales Area SE##-WH-AS Doc. Pric. Proc. A Cus. Pric. Proc. 1 EPAD10## Condition Type PR00 Access Sequence PR02 10 – Customer/material 20 – Price list cat./currency/material 30 – Material 30 – Material Price = $75 Pricing Procedure = RVAJUS Pricing Process

38 Credit Limits and Checking Define automatic credit limit checks to your company’s requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on) A credit representative is automatically alerted to a customer’s critical credit situation as soon as order processing starts Employees can be automatically notified of critical credit situations via internal mail

39 Master Data Core Elements - Material Material Customer Pricing Master Data

40 Material Master – Sales Views (review) Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text Sales Org. 1 View Sales Org. 2 View Barrel Pen

41 Business Rules Rules SD

42 Availability Check For determining the material availability date, SAP can include specific stocks below, if selected: ◦Inventory reserved for safety stock ◦Stock in transfer ◦Quality inspection stock ◦Blocked stock ◦Restricted use stock ◦All movements of stock

43 Shipping Functions Shipping Point Determination ◦The shipping point is selected for each line item based on the shipping point determination process ◦Shipping point selection is based on: –Shipping condition –Loading group –Delivering plant

44 Shipping Functions Route Definition ◦Define delivery method and the transit time  ‘Dummy’ routes can be used to easily define transit time Route Determination ◦ Proposed route is chosen using –Shipping point –Destination country –Transportation zone –Shipping condition

GBI, Inc. GBI, Inc. Sales & Distribution Master Data

Enterprise Structure Plants(DL##/MI##/SD##) Client (250) Chart of Accounts (GL##) Company Code (US##) Fiscal Year Variant (K1) Credit Control Area (GL##) Purchasing Org. (US ##) Purchasing Group (N##) Shipping Point (DL##/MI##/SD##) Distribution Channel (IN/WH) Division (BI/AS) Sales Area Controlling Area (NA ##) FG##SF## Sales Org. (UE##/UW##) Cost centers RM##MI## TG## Business Area (BI##)

GBI Customers

Customer Master General & Company Code Data:

Customer Master Sales Area Data:

Customer Master Price Data: Discount for specific customer:

Customer Master Credit Data:

Assign Sales Areas to Price Procedures: To link sales area to a pricing procedure. The RVAJUS pricing procedure is the standard USA pricing procedure with jurisdiction code. In the pricing procedure, prices are assigned to individual line items in sales order as well as discounts, surcharges, etc. SOrg.DChlDvDoPrCuPPPriPr. UE##WHASA1RVAJUS UE##WHBIA1RVAJUS UW##INASA1RVAJUS UW##INBIA1RVAJUS UW##WHASA1RVAJUS UW##WHBIA1RVAJUS

Exercises: (Due date 3/21/2016) 1. Define Sales Organization 2. Define Shipping Point 3. Assign Sales Organization to Comp. Code 4. Assign Distribution Channel to Sales Org 5. Assign Division to Sales Organization 6. Set Up Sales Area 7. Assign SO – Distribution Channel – Plant 8. Assign Sales Area to Credit Control Area 9. Assign Business Area to Plant and Div 10. Assign Shipping Point to Plant 11. Assign SP with Loading Groups 12. Assign G/L Revenue Accounts 13. Define Pricing Procedure Determination 14: Define Rules by Sales Area

Exercises: (Due date 3/21/2016) 15. Extend Material Master 16. Create Customers 17. Create Pricing Conditions 18. Create Customer Specific Material Price 19. Create Customer Discount 20. Establish Credit Limit for Customers