PROJECT REPORT

EFFECTIVENESS OF SAP IN SALES AND DISTRIBUTION

(A PROJECT REPORT OF SAP IN SD MODULE)

A report submitted to Delhi Business School, New Delhi and WEBCOM as a part fulfillment MBA and PGP in entrepreneurship and business

Submitted by: Anoop kumar soni DBS/08-10/S-064 Sec: B Internal Guide: Mrs. Sweta Seth

Submitted to: Mr. Santosh Jena SAP consultant (SD) WEBCOM

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DECLARATION

I Anoop kumar soni here by declare that The project report on the topic Effectiveness of SAP in SD is the topic under my SAP training in SD module which I have done in my PGP specialization provided by DBS, New delhi in the collaboration with WEBCOM And I have completed it in the given time period. All the data taken on this project is true in all my knowledge.

Anoop kumar soni DBS/08-10/S-064 Delhi business school New Delhi- 110044

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ACKNOWLEDGEMENT

Perseverance, Inspiration and Motivation have always played a key role in the success of any venture. Working on this project was a challenge. It is often difficult to understand wide spectrum of knowledge without proper guidance and advice. I wish to express my gratitude to mrs. Sweta maam (Senior lecture Delhi business school) and Santosh Jena (SAP consultant SD, WEBCOM) who assigned me the project. He has been constant source of guidance and encouragement in exploring the nuances of the project. He took special interest in the study and gave me his pertinent suggestion. I would like to thank Administration and members of Delhi business school who gave me a golden chance of SAP training. I strongly like to say thank to the Administration and consultants of WEBCOM for providing there support and sap configuration in the college campus. Here a special thank to Mr. santosh Jena for intellectual stimulation. Moral support and constant source of inspiration throughout the project and gratefully acknowledge this assistance and inspiration given to me by him

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EXECUTIVE SUMMARY

This project report deals with the use of SAP SD module for the marketing in any organization. It contains the definition of the, enterprise structure, organization management, sales organization. In enterprise structure we define the company, company code, sales area and shipping point and the assignment of these areas with the company code. We also define the distribution channel; division .Integration of subgroups is done. In sales order cycle, we show how the sales process takes place in any organization. In this report we also show all related transaction codes and path in the enterprise structure, master data, sales document style, sales order cycle. We have also given the different screen shots of different paths and features.

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Content
Serial no. 1 2 1 Introduction 2 Advantage and disadvantage 2.1Advantage 2.2 Disadvantage 3 4 5 6 7 8 9 10 3 Why SAP 4 Understanding the SAP system landscapes 5 ASAP methodology 6 Comparison of SAP and ORACLE 7 Implementation of SAP in SD 8 Enterprise structure 9 My enterprise structure 10 Definitions 10.1 Company 10.2 Company code 10.3Creation of new company 11 12 11 Assignment 12 Master data 12.1 Material master data 12.2 Customer master data Topics Page no. 7 9 9 9 11 14 16 22 25 26 27 31 31 31 32 44 51 51 58

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12.3 Partner determination 12.4 Customer 13 13 Pricing and Condition 13.1 Pricing Control 14 14 Sales document style 14.1 Sales order cycle 14.2 Order 14.3 Outline agreement 14.4 Contract 14.5Schedule agreement 15 15 Out bound delivery 15.1 Billing 16 17 18 19 16 Findings 17 limitation 18 Conclusion 19 Bibliography

62 64 69 69 77 81 84 85 86 87 89 90 92 93 94 95

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INTRODUCTION

SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's third-largest independent software vendor. The original name for SAP was German: Systeme, Anwendungen, Produkte. It means "Systems Applications and Products." The goal of the company was to provide large enterprise customers with the ability to interact with a corporate database in real-time. Today, the company states that its goal is "to offer the industry's most comprehensive portfolio of business performance and optimization solutions for companies of all sizes." SAP's first software application was a financial accounting software suite that ran on a mainframe and was known for its stability. It eventually became known as the R/1 system. The "R" stands for real-time. During the 1980s, the company went international, and the second iteration of the R system (R/2) accommodated different languages and currencies. In the 1990s, the third iteration (R/3) moved from the mainframe to a client/server three-tier architecture composed of a database, software applications and a common graphical user interface (GUI). SAP used the name R/3 until the 5.0 release. At that time the name was changed from R/version to ERP Central Component (ECC). The most current version as of November 2009 is ECC 6.0. When the Internet became pervasive, SAP responded by providing companies with the software they needed to sell goods and services online. Their product portfolio got a Web interface and was rebranded MySAP.com. MySAP was designed to be a corporate Web portal with role-based permissions for employees . The company promoted how SAP "solutions" could link commerce conducted over the Internet (e-commerce) with traditional bricks and mortar commerce to provide one seamless view of the business. Next came SAP NetWeaver, the companys development and integration platform and middleware component, and Business Suite, a bundling of SAPs enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), product lifecycle management (PLM) and supplier relationship management (SRM) applications. In 2008, SAP purchased Business Objects, a French enterprise software company that specializes in business intelligence (BI), which marked

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a major change in the companys BI strategy, which was previously focused around SAP's Business Explorer tools. Current products include: SAP NetWeaver - service-oriented technology platform (SOA) for integrating information and business processes across diverse technologies and organizational structures. NetWeaver provides the foundation for other SAP software bundles. SAP Business Suite - software applications for large organizations and international corporations. The applications support core business operations such as supply chain managment, warehouse management, sales, customer relationship management and administrative functions. SAP offers software for 25 vertical industries, including banking, insurance, chemicals, healthcare, retail and consumer products. SAP Business All-in-One solutions, SAP Business ByDesign and SAP Business One - software products that address the needs of small and mid-market companies.

Advantages of Using SAP R/3 in comparison with other Similar Tools Technology playing a major role in today's business environment. So many companies and corporations have adopted information technology on a large scale by using Enterprise Resource Planning (ERP) systems to accomplish their business transaction and data processing needs. And in this technology SAP R/3 plays a significant role when compared with other similar tools. ERP system takes a lead role because of some of the following reasons Many large corporations use several different and separate information systems, often because they have merged with and/or acquired other companies with varied systems. An ERP system integrates these separate information systems and results in improved data reliability and processing efficiency. ERP systems are not only used by large corporations but becoming popular with small to mid-sized companies also. Simplify business transaction processing and thus work load is reduced.

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Advantages and Disadvantages of SAP

SAP Advantages: 1. Integration Integration can be the highest benefit of them all. The only real project aim for implementing ERP is reducing data redundancy and redundant data entry. If this is set as a goal, to automate inventory posting to G/L, then it might be a successful project. Those companies where integration is not so important or even dangerous tend to have a hard time with ERP. ERP does not improve the individual efficiency of users, so if they expect it, it will be a big disappointment. ERP improves the cooperation of users. 2. Efficiency Generally, ERP software focuses on integration and tend to not care about the daily needs of people. I think individual efficiency can suffer by implementing ERP. the big question with ERP is whether the benefit of integration and cooperation can make up for the loss in personal efficiency or not. 3. Cost reduction It reduces cost only if the company took accounting and reporting seriously even before implementation and had put a lot of manual effort in it. If they didn't care about it, if they just did some simple accounting to fill mandatory statements and if internal reporting did not exists of has not been fincancially-oriented, then no cost is reduced. 4. Less personnel Same as above. Less reporting or accounting personnel, but more sales assistants etc. 5. Accuracy No. People are accurate, not software. What ERP does is makes the lives of inaccurate people or organization a complete hell and maybe forces them to be accurate (which means hiring more people or distributing work better), or it falls. Disadvantages: 1. Expensive This entails software, hardware, implementation, consultants, training, etc. Or you can hire a programmer or two as an employee and only buy business consulting from an outside source, do

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all customization and end-user training inside. That can be cost-effective. 2. Not very flexible it depends. SAP can be configured to almost anything. In Navision one can develop almost anything in days. Other software may not be flexible.

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WHY SAP?
SAP ERP: BUSINESS BENEFITS SAP ERP delivers a comprehensive set of integrated, cross-functional business processes. With SAP ERP, you can gain the following benefits: Improve alignment of strategies and operations Run your enterprise in accordance with strategy and plans, accessing the right information in real time to identify concerns early. Pursue opportunities proactively. Achieve corporate objectives by aligning workforce and organizational objectives. Find the best people and leverage their talent in the right job at the right time. Improve productivity and insight Leverage self-services and analytics across your organization. Improve operational efficiency and productivity within and beyond your enterprise. Reduce costs through increased flexibility Use enterprise services architecture to improve process standardization, efficiency, and adaptability. Extend transactions, information, and collaboration functions to a broad business community. Support changing industry requirements

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Take advantage of the SAP NetWeaver platform's latest open, Web-based technology to integrate your end-to-end processes seamlessly. Reduce risk Solve complex business challenges today with SAP, your trusted partner for long-term growth, with 30 years of experience working with organizations of all sizes in more countries than any other vendor. Join SAP's world-class partner network, uniquely qualified to support the best business practices in more than 25 industries. Improve financial management and corporate governance Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics. Increase profitability, improve financial control, and manage risk. Optimize IT spending Integrate and optimize business processes. Eliminate high integration costs and the need to purchase third-party software. Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing. Gain higher ROI faster Install SAP ERP using rapid-implementation techniques that cost less than half what traditional approaches cost. Leverage preset defaults and prepackaged versions available for specific industries.

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Retain top performers Retain your top performers through clearly defined career and development plans. Link employees performance to compensation programs such as variable pay plans and longterm incentives. Provide immediate access to enterprise information Give employees new ways to access the enterprise information required for their daily activities.

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Understanding the SAP System Landscape

What exactly is SAP System Landscape? How does this phenomenon differ from SAP System Architecture? In this posting, I intend to answer the above mentioned, closely related questions in a very concise manner, with particular emphasis on the system landscape of SAP. Often times, SAP users, especially new comers misunderstands the two concepts.

The SAP architecture is typically the technology framework of the SAP system. SAP's architecture unlike the system landscape has changed over time (and more recently) with the advent of SAP ECC. In a prior posting, I "x-rayed" they system architecture of SAP R/3.

They system landscape basically is the set-up or arrangement of your SAP servers. Ideally, in an SAP environment, a three-system landscape exists. A three-system landscape consists of the Development Server-DEV, Quality Assurance Server-QAS and the Production Server-PROD. This kind of set-up is not primarily designed to serve as server clusters in case of system failure, the objective to enhance "configuration pipeline management".

A Typical SAP Three-System Landscape

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At this juncture, it is important to state that a test system - Sandbox can also exit separately. The essence of the sandbox is to test the configuration of the business processes of a company, especially at the inception of the project (before the Business Blue Print is signed). It can also serve as a practice environment, even after go-live.

Pipeline is the environment where the configuration in the development system is moved to the quality assurance system and finally to the production system. The whole idea is to ensure that the configuration of these systems is in sync at any point in time. Suffice to say that, configuration/changes are first made in the Development system, thoroughly tested in the Quality Assurance system before been loaded into the production (Live) system.

This approach throws up the transport management system concept. Transport management system is the coordination of the movement of objects and configuration changes from the development system to the Quality Assurance system and then to the Production system. At times, this sequence of movement is not possible, especially in cases where an SAP note mandates that changes be made directly on the production system.

In such rare cases, objectively confirm that the change transport cannot be performed. Very likely, your system must have been configured to "not modifiable" (a system locking strategy that enforces the three-system landscape change transport rule); unlock the system by changing the global setting option to "modifiable" using transaction SE03. After you have done that, effect the change(s) on the system. Immediately lock the system back by changing the global setting option to "not modifiable" using transaction SE03. Replicate the changes on the other system. Note that transaction SCC4 can also be used to lock the system so that client dependent and independent configuration changes are not carried out directly on the production system.

By and large, the SAP system landscape ensures that the integrity of data is enhanced via enforcing a controlled configuration changes effect on the target system - production. Previous Entry / Next Entry
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ASAP Methodology
Features The implementation of your SAP System covers the following phases: Project Preparation In this phase you plan your project and lay the foundations for successful implementation. It is at this stage that you make the strategic decisions crucial to your project: Define your project goals and objectives Clarify the scope of your implementation Define your project schedule, budget plan, and implementation sequence Establish the project organization and relevant committees and assign resources Business Blueprint In this phase you create a blueprint using the Question & Answer database (Q&Adb), which documents your enterprises requirements and establishes how your business processes and organizational structure are to be represented in the SAP System. You also refine the original project goals and objectives and revise the overall project schedule in this phase.

Realization In this phase, you configure the requirements contained in the Business Blueprint. Baseline configuration (major scope) is followed by final configuration (remaining scope), which can consist of up to four cycles. Other key focal areas of this phase are conducting integration tests and drawing up end user documentation.

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Final Preparation In this phase you complete your preparations, including testing, end user training, system management, and cutover activities. You also need to resolve all open issues in this phase. At this stage you need to ensure that all the prerequisites for your system to go live have been fulfilled. Go Live & Support In this phase you move from a pre-production environment to the live system. The most important elements include setting up production support, monitoring system transactions, and optimizing overall system performance. Elements of the Enterprise Structure The enterprise structure consists of the following elements: Client R/3 System clients have an independent status both in legal and organizational terms. The clients within the system can be distinguished by a three-character, alpha-numeric code and are defined in Customizing. When your R/3 System is installed, it is set up with two clients: Client 000 Client 000 is the SAP standard client. The SAP original system is held in this client. Client 000 contains default values for all tables. SAP updates the default values with every system upgrade and release upgrade.

You are not allowed to work in this client. Client 001

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The content of this client is the same as the 000 client. You can do your customizing in this client in order to adjust the standard system to your requirements. Clients are a technical structural feature of an R/3 system. The system makes a distinction between client-independent and client-dependent elements. Client-independent elements are objects that are used in all clients. Client-specific elements are objects that are only used in a specific client. The following objects are defined as client-independent:
y y y y y y y

data structures, such as field definitions, table structures, and file set-ups client-independent tables transactions programs Standard reporting Authorization objects R/3 library

The following objects are defined as client-dependent:

y y y y y

client-specific tables that must be copied from the original client, that is, client 000 HR master records user master records Authorization profiles customer-specific programs

The following factors must be taken into consideration when you decide whether or not to create a client:
y y

You have to adapt the system client-specifically to the enterprise structure. You cannot access personnel data in other clients. Each clients personnel data is protected from unauthorized access.

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You cannot perform reporting across all clients, and you cannot receive or assign clientindependent access authorizations.

y y

You cannot exchange data between clients. If an employee moves between two clients, you must assign him or her a new personnel number.

Company code Within a client the company code represents the highest level of the enterprise structure. In Customizing, the company code is defined by a four-character, alpha-numeric code. If the Controlling, Financial Accounting, Materials Management or Sales and Distribution application components are set up in addition to the Personnel Administration component, you must set up the company code so that it also meets their requirements. This is not tantamount to a restriction: You define all of the HR Systems most important control data at the level of the personnel subareas, and these levels belong to Personnel Administration. In Personnel Administration, the company code has the following control functions:
y

The company code is used to generate default values for data entry, for example, an employees payroll accounting area.

y y

The company code is a selection criterion for reporting. The company code constitutes an authorization check unit.

At the company code level, the following control features are assigned which are relevant for Personnel Administration:
y y y

the default country key for the employees personal data, address data, and bank data. a default value for the currency key for employees basic pay. a language code for text output, for example, employee remuneration information.

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This language code is not the same as the logon language, which determines the language used in the on-line system. Personnel area Personnel areas divide a company code into sub-units. The individual personnel areas in a company code are defined in Customizing and have a four-digit alpha-numeric identifier. The personnel area has the following functions:
y

The personnel area is used to generate default values for data entry, for example, an employees payroll accounting area.

y y

The personnel area is a selection criterion for reporting. The personnel area constitutes an authorization check unit.

Personnel subarea Personnel subareas are a subdivision of the personnel area. Organizational control of the main HR subareas, namely the pay scale and wage type structures and work schedule planning, takes place at the personnel subarea level. In Customizing, the personnel subarea is defined by a fourcharacter, alpha-numeric code. The respective country-specific control features are stored here. The personnel subarea has the following organizational functions:
y

Specifying the country grouping; this controls the dialog for entering country-specific personnel data and the setting up and processing of wage types and pay scale groups in payroll accounting; within a company code, the country grouping must be unambiguous

Assigning a legal entity to differentiate between the individual companies from a legal point of view

It specifies groupings for Time Management. This enables you, for example, to set up work schedules, substitution types, absence types, and leave types on the basis of a specific personnel subarea.

The personnel subarea is a selection criterion for evaluations.

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The personnel subarea is used to generate default values for pay scale area and pay scale type for an employees basic pay.

y y y

It specifies the public holiday calendar. Defining personnel subarea-specific wage types per personnel area It assigns a legal person for payroll accounting.

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Comparison of SAP and ORACLE

Item

SAP

ORACLE

Company Information

Headquarter

Germany

USA

Position in Market

Product Line

Experience in Insurance Domain

Product Line

The largest vender of management software; Third-largest independent software company ERP (including Financial, Human Resource, etc) Customer Relationship Management Software Enterprise Performance Management Software Internal Audit& Compliance Software Supply Train Management Software Business Intelligence NetWeaver Tech Platform Core System Policy Administration System Claim Administration System Reinsurance Administration

The largest vender of data base software Second largest independent software company Oracle Oracle Business Intelligence (Financial) PeopleSoft Data Base Software Siebel Client Management Software Hyperion Enterprise Performance Management Software BEA middleware products Oracle business

No core system for insurance industry. To purchase thirdparty software vender to fulfill the project

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Partner

System Commission Administration System Billing& Payment Administration System Insurance Industry Client Relationship Administration System Financial Assets Administration System ERP IBM Accenture PWC Financial Accounting Management Accounting Capital Management Asset Management Financial Reporting Platform Budget Management Expense Management Financial Performance Management Audit Information System GRC New-Version Budget planning Software package includes system performance monitor, Backup& Restore, System function, etc

Oralce Financial OFSA I-Expense Treasury Hyeperion

Software Package& Technical Support

Modules of Finance Sub System

Other Function

There is no System function in the software package

Purchase

Not based on module Base on module

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Method

Expense Allocation Interface between Bank and Insurance Focus on Satisfy CIRC regulation Enhancement

Financial accounting and management accounting are independent, to support cost management and analysis in more efficient way Management accounting is flexible Experienced in interface between bank and insurance Business user capability Easy Configuration can satisfy many enhancement requirement User orientation SAP worldwide technical support Java Open-SQL IBM DB2 Oracle MS SQL Yes

User accounts& licenses will also be taken into price consideration Complicate in COA setting, not flexible

There is no expense allocation function No such experience

IT capability Not very easy Many enhancement Need to be developed IT orientation Oracle worldwide technical support Java Oracle No

Platform

Maintenance Issue Technical support Develop Language Data Base

Open Source

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IMPLEMENTATION OF SAP IN ERP:

1. SAP Labs is the research and development organization of the parent company. SAP has its development organization spread across the globe. Many, but not all, labs locations are hosting SAP Research groups. 2. SAP customer support, also called Active Global Support (AGS) is a global organization to provide support to SAP customers worldwide. 3. User Groups are independent, not-for-profit organizations of SAP customer companies and partners within the SAP Ecosystem that provide education to their members, influence SAP product releases and direction, exchange best practices, and provide insight into the market needs 4. In 2007, the SAP User Group Executive Network (SUGEN) has been established to foster the information exchange and best practice sharing among SAP User Groups and to coordinate the collaboration with SAP for strategic topics. 5. Partnerships are core to SAPs strategy and in its 35 years of history the network of software solution providers, value-added resellers, distributors, technology and services partners has developed into a broad ecosystem that is among the industry's largest.

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Enterprise Structure:

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MY Enterprise Structure:

Nokia limited

Client

Company

Nokia Code

Nokia (NKIA)

Plant

Nokia

Delhi Storage Location

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SAP enterprise structure is organizational structure that represents an enterprise in SAP R/3 system. It consists of some organizational units which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. Organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle specific business functions. We must set the enterprise structure correctly in the first place. The change of it usually requires a great effort and very time consuming. To set it up correctly we must have a comprehensive knowledge about the business processes and how to map it to SAP configuration.

A specific organizational unit is defined by a specific function or module in SAP. Company code is defined by FI module. Plant is defined by Logistics function. Storage Location and Purchasing Organization are defined by MM module. In SD module we have to define Sales Organization, Distribution Channel, and Division. We have an option whether to use Sales Office, Sales Group, and Sales Person or not. Enterprise structure consists of following components:

Company            Company Code Credit Control Area Sales Organization Distribution Channel Division Sales Office Sales Group Sales Person Plant Storage Location Warehouse

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SAP easy ACCESS screan

It is the primary screan in SAP. When we login in the SAP the first window appeas that is called SAP easy access screan (figure 1)

(figure 1) easy access screan

Customising screan
When we type SPRO the new window apears which called customising screan (figure2)

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IMG screan (implementation guide)

Img screan is reffered as implementation guide. (Figure3)

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1: DEFNITIONS:
COMPANY A company is an organizational unit in Accounting which represents a business organization according to the requirements of commercial law in a particular country.In the SAP system, consolidation functions in financial accounting are based on companies. A company can comprise one or more company codes. When you create a company you should bear in mind the following points relating to group accounting:
y

If your organization uses several clients, the companies which only appear as groupinternal business partners, and are not operational in each system, must be maintained in each client. This is a precondition for the account assignment of a group-internal trading partner.

Companies must be cataloged in a list of company IDs which is consistent across the group. The parent company usually provides this list of company IDs.

It is also acceptable to designate legally dependent branches 'companies' and join them together as a legal unit by consolidation.

COMPANY CODE A Company Code is a unit included in the balance sheet of a legally-independent enterprise. Balance sheets and Profit and Loss statements, required by law, are created at company code level. The Company Code is the smallest organizational unit for which we can have an independent accounting department within external accounting, for example, a company within a corporate group (client). In SAP, a company code is represented by a unique 4-digit alpha-numeric for a specific client.

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Creation of new company

In SAP when we go for the practicle field we have to customise the SAP according to the need of client the first step in the customising process is to create a new company as per the ne SAP Easy Access: SPRO Sap Reference IMG Edit, Copy, Delete, Check Company Code. Enterprise Structure Financial Accounting

Follow the above defined path and double click on edit, copy, company code then goto copy button and copy your company code from 1000 Or we can also go directly in this screen by using T code EC01 Now the next step is to make initial changes in the company code the path is Edit, copy, company data then double click on position and search company code then enter and highlight your company code go to in new entry and make initial changes save the changes go back in the address fill the detail finally save the document Or we can use Tcode-OX02 Now the next step is to check or verification of your company by using T code OBY6 Now, creations of the company go to Define company make new entry give company details save it and back.

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Complete address and details of comp.

Company Company Code

Nokia NKIA

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PLANT A plant is the place of production or simply a collection of several locations of material stocks in close physical proximity. A plant is represented by a unique 4-digit alpha-numeric for a specific client. Plant is used in Material Management (MM), Production Planning (PP), and Plant Maintenance (PM) module. A plant is assigned to one company code. The plant is embedded in the organizational structure as follows:
y

The plant is assigned to a single company code. A company code can have several plants. Several storage locations in which material stocks are managed can belong to a plant. A single business area is assigned to a plant and to a division. A plant can be assigned to several combinations of sales organization and distribution channel. A plant can have several shipping points. A shipping point can be assigned to several plants. A plant can be defined as a maintenance planning plant

y y y

The Path is Spro IMG Enterprise structure Definition -Financial accounting Define Copy, Edit, Check Plant Copy, delete, check plant then go to copy option showing as below : Logistics

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Now go to define plant and search your plant to make initial changes go to address and give required changes

Save your plant

Plant Plant Code

Nokia Delhi NKIA

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DIVISION Division is a way to group materials or services. A wide range of materials or services can be divided into divisions. A material or service is always assigned to just one division. In SAP SD, the use of divisions allows us organize our sales structure around groups of similar products or product lines. We can define a division-specific sales structure. Within a division, we can also carry out statistical analyses or devise our own marketing strategies. In order to adapt the functional scope of a division to the organization in your company, you should process the following check list: y y y Allocate a division to one or more sales organizations. Allocate a division to one or more distribution channels. Allocate a business area to a division from a plant. This way, business area account assignment can be carried out for transactions in Materials Management. As of Release 3.0, the business area is determined in Materials Management from the division and the valuation area. A material is always assigned to one division only. Define master data within a division for customers as well as your own conditions and pricing. Create shared customer master data and conditions, which apply to several divisions, using a common division. Define sales offices for a division. Define for each sales document type that all items of a sales document must belong to the same division. The items of a delivery or a billing document can belong to different divisions. The division is used as a selection criterion for lists of sales documents and the work list for deliveries.

y y

y y

y y

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SPRO img enterprise structure defines, copy delete, check division Define division

definition

financial accounting

logistic

In this step we will only define division not to copy go to new entry and define division

Division Division Code

Nokia division NK SALES ORGAIZATION

Sales organization is the basic organizational element in SD. All sales documents are created for a sales organization. Sales organization can be defined based on:

y y y

Division of sales function of the company based on Geography or sub-businesses of the company Any other sales criteria. Sales organization is defined as a 4-digit alpha numeric code with external numbering.

The above sales organizations have been created because of following considerations

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Within a sales organization, you can define your own master data. This allows a sales organization to have its own customer and material master data as well as its own conditions and pricing.

y y

Define sales document types within a sales organization. A sales organization is the highest summation level (after the organizational unit Client) for sales statistics with their own statistics currency.

y The path is

To sum it up, the zonal nature of the organization structure is mapped using sales organizations.

Spro img---enterprise structure definition financial accounting sales and distribution define copy, delete, check, sales organization copy delete check sales organization Go to define sales org. and find your sales org. by checking in position select whole line of your sales org. and go to address to make changes

Sales Organisation Sales Organisation Code

Nokia Sales Organization NKSL

DISTRIBUTION CHANNEL Distribution Channel is an organizational unit that represents the channel through which the materials or services reach the customer, such as wholesale channel, direct sale channel, retail channel, etc.
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A distribution channel can be assigned to one or more sales organizations. In order to adapt the functional scope of a distribution channel to the organization in your company, you should process the following check list:
y

Allocate a distribution channel to one or more sales organizations. Allocate one or more plants to a distribution channel. Within a distribution channel, you can define master data for customers or materials as well as conditions and pricing.

Create master data for a representative distribution channel which is then also used in other distribution channels.

For a distribution channel, determine sales document types. Determine sales offices for a distribution channel. All items of a sales document belong to a distribution channel. The entire sales document is therefore entered for a distribution channel.

The items of a delivery can belong to different distribution channels. All items of a billing document belong to a distribution channel. The distribution channel can be used as a selection criterion in lists. You can determine the printer destination for messages differently for every distribution channel on the basis of the sales and billing documents.

The path is Spro img distribution enterprise structure definition define copy delete check dist. Channel financial accounting define dist channel sales and

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Distribution Channel Distribution Channel Code

Nokia distribution channel ND

STORAGE LOCATION A Storage Location is a storage area comprising warehouses in close proximity. A Storage Location is represented by a unique 4-digit alpha-numeric for a specific plant. Material stocks can be differentiated within one plant according to storage location (inventory management). Storage locations are always created for a plant.A storage location is the place where stock is physically kept within a plant. A storage location has the following attributes:
y

There may be one or more storage locations within a plant. A storage location has a description and at least one address. It is possible to store material data specific to a storage location. Stocks are managed only on a quantity basis and not on a value basis at storage location level.

Physical inventories are carried out at storage location level.

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A storage location can be assigned to a warehouse number in the Warehouse Management System . You can assign more than one storage location to the same warehouse number within a plant.

Storage locations are always created for a plant.

The path is Spro img management enterprise structure definition maintain storage location financial accounting material

Storage location:

Storage location Storage location code

Nokia Store NKSL

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SHIPPING POINT The shipping point is the highest-level organizational unit of shipping that controls your shipping activities. Each outbound delivery in the SAP system is processed by one shipping point. The shipping point can be a loading ramp, a mail depot, or a rail depot. It can also be, for example, a group of employees responsible (only) for organizing urgent deliveries. You assign a shipping point in the SAP System at plant level. A shipping point is a physical place and should be near the delivering plant. More than one shipping point can be assigned to a plant.

We can also assign several plants to a shipping point in the SAP system. In order to adapt the functional scope of a shipping point to the organization in your company, we should process the following check list:
y

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.

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.

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The shipping point is used as a selection criterion for processing deliveries like printing, picking or goods issue.

The path is Spro img enterprise structure definition financial accounting execution define copy delete check shipping point logistics

Shipping Point Shipping Point Code

Nokia Shipping Point NKSP

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ASSIGNMENT
Now the next and very important step is to assign all the codes with each other making the assignment in all required fields: Assign plant to company code In the step "Assign plant to company code", you assign each plant to a company code. A plant can only belong to one company code The paths are Spro img enterprise structure assign plant to company code definition assignment logistics general

Assign sales organization to company code You can use this step to define the allocation of sales organizations to company codes. This establishes a link between the SD and FI systems. A sales organization belongs to just one company code.

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Assign distribution channel to sales organization

In this

step, you allocate the distribution channels to a sales organization. In this case, as many distribution channels as desired can belong to a sales organization. In addition, a distribution channel can be valid for several sales organizations. The path is same as above

Assign division to sales organization In this step, you allocate as many divisions as desired to a sales organization. Any one division can belong to several sales organizations.
The path is same as above

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Assign sales organization - distribution channel - plant Use this step to assign any number of plants to a combination of sales organization and distribution channel. A plant can be assigned more than once.

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Now go to business area account assignment for defining rules by sales area Define Rules by Sales Area For business area account determination, you have to define for each sales area the rules according to which the SAP System should find a business area. Note
y y

If you do not specify a rule for a sales area, account determination cannot be carried out for each business area. Currently you cannot change the rules for determining the business area in Customizing

The path is Spro img assignment definition assignment sales and distribution business area account

Define rules by sales area Then give position .

Now in the same path next step Assign business area, plant, and distribution click position and give business area (0001)

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Assign Business Area to Plant and Division In this IMG activity, you assign one business area to each of the combinations of plant and division for automatic business area account assignment. The SAP System then finds the corresponding business area for account assignment using plant and item division in the case of revenue postings.
.

The next step in the same path Assign business area by sales area Assign Business Area by Sales Area In this IMG step, you assign business areas to sales areas for automatic business area account determination. The system then finds the corresponding business area for account assignment using the sales area for:
y y

Revenue postings Value postings due to material movements

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Now the final assignment of s&d module

Assignment of shipping point to the plant Spro img enterprise structure logistic execution assign shipping point to plant

Assign shipping point to plant In this step, you can allocate as many shipping points as desired to the plants. Any one shipping point can belong to several plants.

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To check the assignment structure t-code is /NEC01 /nec01 ---structure----navigation

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Master data
Material master Inferior regarding material 3 tabs---1 basic data tab 2 sales data tab 3 account tab

MATERIAL MASTER DATA

Division is a field in the material master data (it can be input/edited on Basic Data 1 view by MM01/MM02 t-code). Thats why a material is always assigned to just one division. A material can be sold through one or more distribution channels in one or more sales organization. To allow it, we have to maintain the material master data for each combination of sales organization and distribution channel.

We can set different data of a material for each combination sales organization and distribution channel, such as: minimal order quantity and minimal delivery quantity data. By doing so, for example, a material must be ordered by customer minimal 1000 PC for wholesale channel and 10 PC for retail channel (assumed we only have one sales organization).

Material Master: It is a Master file which contains information of a particular material, depending upon the views selected from the user departments. Different types of views available in Material Master Record are 1. Basic data 1 & 2 2. Purchasing 3. General plant data storage 1 & 2 4. Warehouse Management 1 & 2 5. MRP (Material required planning) 1,2,3,4
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6. Accounting 1 & 2 7. Costing 1 & 2 8. Quality Management 9. Plant Stock 10. Storage Location Stock 11. Classification 12. Forecasting 13. Purchase Order Text 14. Foreign Trade: Import Data Material Type: It is a key that assigns the material to a group of materials such as Raw materials, trading goods. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. The Material type defines certain attributes of the material and has important control functions Use When creating a material master record, the material type determines: whether the material number is assigned internally or externally from which number range interval the material number comes which screens are displayed the order in which screens are displayed which department-specific data is displayed for the user to enter.

Different Material Types available: ROH - Raw Material FERT - Finished Product HALB- Semi finished Product
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HAWA- Trading goods DIEN - Services ERSA - Spare Parts PIPE - Pipeline material LEIH - Returnable Packaging HERS- Manufacturer Parts FGTR - Drinks FOOD- Foods FRIP - Perishable Goods Configurable materials (KMAT): Configurable materials are materials that can have different variants. For example, an automobile can have different types of paintwork, trim, and engine. Finished products (FERT): Finished products are produced in-house. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data.

Non-stock materials (NLAG): Non-stock materials are not held in stock because they are consumed immediately.

Non-valuated materials (UNBW): Non-valuated materials are managed on a quantity basis, but not by value.

Packaging materials (VERP): Packaging materials are used to transport goods and come with the goods free of charge. A material master record of this material type is managed on both a quantity basis and value basis.

Raw materials (ROH): Raw materials are always procured externally and then processed. A material master record of this type contains purchasing data, but not sales data since they cannot be sold.

Semi finished products (HALB): Semi finished products can be procured externally and
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manufactured in-house. The company then processes them. A material master record of this material type can contain both purchasing and work scheduling data.

Services (DIEN): Services can be performed internally or procured externally (outsourced). They cannot be stored or transported.

Spare parts (ERSA): Spare parts are used to replace defective parts. They may be kept in stock. A material master record of this material type can contain purchasing data, but not sales data

The path isSap easy access create (general) Or direct by T codes of creating material (MM01) y y After following path, select Industry Sector & Material Type andPress Enter. When you create a material master record, you are required to classify the material according to industry sector and material type. Industry Sector Key that specifies the branch of industry to which the material is assigned. Now select the required nine tabs as: 1. Basic Data 1 2. Basic Data 2 3. Sales: Sales Org. Data 1 4. Sales: sales Org. Data 2 5. Sales: General/ Plant Data 6. General Plant Data Storage 1 7. General Plant Data Storage 2 8. Accounting 1 9. Accounting 2 Then Click on Organization levels select Views & Press Enter. Enter Plant & Storage Location then Press Enter. After entering the window will open containing nine required fields like basic data 1, basic data 2, storage location 1, storage location 2, general plant, accounting information etc.
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logistics material management create material

material master

material

y y

y y y

Fields in different views in Material Master

1. Basic Data 1 y y y y y y y Material Description Basic Unit of Measure Material Group General item category Gross Weight Net Weight Volume etc

2. Basic Data 2 y Contains Design Drawing information.

3. Sales: Sales Org. Data 1 y y y Plant Division Storage Location

4. Sales: Sales Org. Data 2 5. Sales: General/ Plant Data 1 6. General Plant Data Storage 1 y y Basic Unit of measure Storage location

7. General Plant Data Storage 2 y y y Plant Gross weight Net Weight

8. Accounting 1 y y y y y y y Basic Unit of Measure Price control Price unit Currency Moving & Standard Price Total Stock Total Value
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Division

9. Accounting 2 After entering all the required information save the data and the material will be generate

My material is PAGER

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The next step in master data is to post the good or transfer of goods Transfer (Posting) of Goods- MB1C After loading group we have to transfer goods to the storage location and use the Transaction Code MB1C. Write Document and Posting dates and Movement type 501 and Enter. Window will open write the Material and quantity and Enter and then save it. After that the document will be posted and ten digits code will be generated The path is /NMB1C Give document date, posting date, movement type, and storage location

To See your Stock / MMBE: - We can see our stock in the storage location by using the Transaction Code MMBE - After filling the material, plant and Storage location click on Execute button, we can see our stock

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NOW TO MAINTAIN CUSTOMER MASTER DATA To create a customer master data you have to maintain atleast 3 required mandatory fields These fields are 1 General data- address, fill data, all other fields can be left blank 2 sales area data- in sales customer pricing procedure, shipping- delivery priority shipping condition, billing- in co terms, terms of payments tax documents partner function 3 company code data- acct. mgt reconciliation account terms of peyments

CUSTOMER MASTER DATA

Purpose In the SAP System, all business transactions are posted to and managed in accounts. You must create a master record for each account that you require. The master record contains data that controls how business transactions are recorded and processed by the system. It also includes all the information about a customer that you need to be able to conduct business with him. Preparations for Creating Customer Master Data In the following steps, you make the settings for preparing to create customer master records. To do this, you need the following objects:
y

Number Range The number range determines the number interval from which the account number for the master record is to be selected. The account number must be assigned when creating a customer master record. Using the number range, you also determine whether the numbers are assigned internally by the system or externally by yourself. Account group The account group is a grouping of properties which control the creation of master records. It determines which fields have to be or can be filled when creating the master record. A number range is allocated to the account group. The type of number assignment and a number interval are determined using it. Accounts which require the same master record fields and use the same number range are created using the same account group. Field status The field status definitions determine the status of the fields on the screens for the master data. You define the status dependent on the account group. You can also determine the status dependent on the processing type (transaction) and on the company code.

To do this, you should consider the following:

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How many number ranges do you need for your customer master records? For the size of the number intervals, you should try and take into consideration not only the current customer master but also future developments.

How many account groups do you need? You must create at least one account group if you do not use the groups available in the standard system. The number of number ranges gives you an initial clue as to the number of account groups. Your number ranges are allocated to the account groups. If you have determined that you require several number ranges, then you must create at least as many account groups so that you can use the number ranges. The number of account groups which you need also depends on whether you use these groups for the layout of the screens. For example, in the standard system two account groups are recommended: one group for standard accounts and another group for onetime accounts.

Should the screen fields have a special field status dependent on the account group? This status can depend on
o o

the company code in which the master record is created the transactions with which the master record is processed.

Define Account Groups with Screen Layout (Customers) In this step, you determine the account groups for customers. You can also define reference account groups for one-time accounts. You can use these to control the fields of the one-time account screen so that, for example, certain fields are displayed as required fields or are hidden. When creating a customer account, you must specify an account group. You can specify a reference account group under "Control" in the "General data" part of a one-time account's master data. If you do not specify a reference account group, then, as previously, all fields of the one-time account screen are ready for input during document entry. You use the account group to determine:
y y

the interval for the account numbers whether the number is assigned internally by the system or externally by the user (type of number assignment

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The path is Spro img financial accounting acct receivable and acct payable customer acct master data preparation for creating customer master data define acct group with screen layout position acct group(ZAG2) Steps: y y y y y Find ZAG2 from positions and then copy as. Give your account group and name. Go to general data and double click and select address. Select name 1/ last name and tick the required entry tab. Select company code data, then account management and then tick required entry of reconciliation account. y y y y Select payment transaction then terms of payment and then tick required entry. Select sales data, then sales and then tick required entry in pricing procedure. Select shipping then tick required entry of shipping conditions. Select billing then billing and incoterms and tick required entry in both.

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My new customer account group

Account group Name Next step is in to go

NKBB Nokia Bulk Buyer

/nxd01 and click on general data, address, and required entry

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There are a no of mandatory fields which we have to check for required entry Like in company code data we have to choose reconciliation acct The next step is to assign no. range to customer account group Assign Number Ranges to Customer Account Groups In this step we assign the number ranges we created in the preceding step to the account groups for customers. We can use one number range for several account groups.

Group Name Number range Now set up partner determination

NKBB Nokia Bulk buyer 02

Partner Determination
In the following menu options, you define the rules according to which automatic partner determination is to be carried out. When creating a customer master record, the SAP System proposes the allowed partner functions to be maintained. According to the rules defined here, the partners are adopted from the customer master records of the sold-to parties into the sales and distribution documents.
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You have to edit the following points for the function "Partner determination":
y

Partner function You define with the help of the partner function which functions exist for the partners ( customers, vendors, employees, and so on) in your system.

Partners allowed for each account group You allocate the permitted partner functions to every account group customer.

Function conversion You can define the key of the partner functions according to the language.

Partner object Partners are possible in the customer master record and the so-called partner objects in the sales and distribution documents . Select a partner object and define the rules for partner determination for this object.

Partner determination procedures You define partner determination procedures which contain all the allowed partner functions for every partner object.

Procedure allocation You allocate each partner determination procedure to an actual partner object using a key, for example, to an account group customer or a sales document type.

Partners are contained both in the customer master records and in the sales and distribution documents . You define partner determination for each of these objects individually. The following partner objects exist:
y y

customer master record sales document

o o

header item

delivery
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o y

header

billing document
o o

header item

sales activity

After defining the partner functions, select one partner object after the other and define the partner determination procedures for the selected object. Only when you have checked and, if necessary, changed the partner determination for all the partner objects is the function "Partner determination" completed. Note on tranport interface In the transport, all objects maintained for partner determination are transported. In the correction which is created for the transport, you can check the table entries and delete the entries which are not to be transported. Path is Sales and distribution determination basic function partner determination set up partner

Double click on set up partner determination for customer master data Then double click on acct group function assignment

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Give partner determination

Now the next step is to create new customer T code is XD01

Customer
Business partner from whom receivables are due as a result of services rendered. Examples of these services are:
y y y

Goods delivered Services performed Rights transferred

Customer master data is maintained on four tabs for the following three views:
y

General data
o

General data for customers

y y

Company code data Sales area data A) Sales B) Shipping C) Billing document D) Partner

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Give name and details of the customer, Click on company code data Reconciliation acct 140000 Click on payment transection Give terms of payments Click on sales area data Give customer pricing procedure Shipping condition Billing document Incoterms Terms of payments

Account group Customer number

Nokia bulk buyer 0000100186

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Now maintain shipping point determination Shipping Point and Goods Receiving Point Determination For each item, the SAP System determines the shipping point when processing a sales document. You can change the shipping point in the sales document manually. Shipping points are maintained in Customizing in Section "Create shipping point". The specification of a shipping point is required for creating a delivery for an order item. The automatic determination of the shipping point depends on the following criteria:
y

delivering plant of the item The delivering plant is automatically determined by the SAP System in the sales document item, on the basis of the ship-to party and the material. You can manually change the delivering plant of an item.

y y

Shipping conditions of the sold-to party or the sales document type Loading group of the material

In the following menu options, you define the shipping conditions, the loading groups and the rules for the shipping point determination. In addition, you can specify a shipping condition for particular sales document types. Assign Shipping Points In this menu option, you allocate the shipping points to the desired combinations of shipping condition and loading group for each plant. Shipping conditions: 01 As soon as possible 10 Immediately Path is Spro img logistics execution shipping basic shipping function point and goods receiving point determination assign shipping point Go to position cursor Give shipping condition 01, loading group, and plant shipping

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Then enter and remove 1000 from shipping point and give your own shipping point

Shipping condition Loading group Plant

01 0001 NKIA

Again same procedure for shipping point determination for 10 (immediately)

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PRICING AND CONDITIONS

The Pricing function is a method of determining prices using the condition technique. SAP Enterprise Buyer uses Pricing when purchase documents are being created, for example, when a shopping cart or purchase order is created. The system automatically determines the gross price and any surcharges and discounts that apply to a specific vendor according to defined conditions. The system uses the gross price and these surcharges or discounts to determine the net price. Pricing consists of the following elements: y Condition Type A condition type serves to differentiate between prices in the system. You can define a separate condition type for each type of price, surcharge or discount that may arise in your business transactions. The condition type defines, for example, a discount as a fixed amount or as a percentage. Access Sequence An access sequence is a search strategy with which the system looks for valid data for a specific condition type. You can define an access sequence for each condition type. In Enterprise Buyer the access sequences are predefined, changes are not intended to be made by customers. Condition Table A condition table contains price information on a master data type, for example, on a product master. If you define a product price or a special discount, for example, you create condition records in the relevant condition table.

There are two types of pricing internally And Externally Pricing Control The following steps describe how you should set up pricing control in the system. You should be familiar with the pricing criteria before making the necessary settings for pricing in the SAP System. Check how prices as well as surcharges and discounts are created. For example, determine whether different prices apply to individual customers or customer groups and how surcharges and discounts are calculated.

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Check whether separate pricing is carried out for individual business transactions. You may levy specific freight surcharges for rush orders, for example. Specify at what point in time prices are determined (e.g. for sales promotions, price increases, etc.). Also clarify who is responsible for determining prices. Afterwards, adjust your pricing dependencies to the pricing criteria in the SAP System. To do this, see the following steps.
- s&d -----basic function=== pricing-----pricing contro;l= define condition table==== create condition table------

Define Condition Tables In this IMG activity, you define price dependencies. You can make prices, surcharges, and discounts dependent on almost all the fields in a document. You define these dependencies using the condition tables. In a condition table, you define the combination of fields for which you can create condition records

Condition Table no.

578

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Now generate no. of fields

Long key word Select a field clicks on generate then yes Go to local object and generate table

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Define Access Sequences You define access sequences in this IMG step. The access sequence is a search strategy which the SAP System uses to search for condition records valid for a condition type. For example, you can define for a price that the SAP System first searches for a customerspecific price and then for a price list price. Path is define access sequence maintain access sequence

New entry give access sequence enter then saves

Name Code

Nokia access sequence NKNK

After creating access sequence just do enter a new window will be appear

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Select whole line and double click on accesses then double click on fields give required entries and save it

Finally save it.

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Now next step is to define condition type

Define Condition Types You define condition types in this step. Price elements are represented in the SAP system byg condition types. Price elements can be, for example, prices, surcharges, discounts, taxes or, freight, and are stored in the system in condition records. You can, for example, define whether a discount is calculated as a percentage or a fixed amount using the condition type. You specify an access sequence in every condition type. Thus, you define which fields the SAP system checks when searching for a valid condition record.

The path is Spro img sales and distribution define condition type Maintain condition type Select your own condition type highlight the line and copy it Give your own condition type and access sequence then enter and save basic settings pricing pricing control

Condition types Name

NKNK Nokia Condition Type

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Now define and assign pricing procedure Maintain pricing procedure and go to new entry Define and Assign Pricing Procedures You define the pricing procedures in this step. In addition, you assign the pricing procedures to the transactions by defining the following dependencies:
y y y

Customer Sales document type Sales area

In the pricing procedure, you define which condition types should be taken into account and in which sequence. During pricing, the SAP System automatically determines which pricing procedure is valid for a business transaction and it takes the condition types contained in it into account one after the other. The determination of the procedure depends on the following factors:

Now select the whole line and double click on control data go to new entry give steps and condition types descriptions and enter then save it

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STEP 10 11 12

CONDITION TYPE NKNK K004 K007

DESCRIPTION Nokia Pricing procedure MATERIAL CUSTOMER DISCOUNT

Now define pricing procedure determination Go to new entries Give all the details and then enter and then save Give sales organization Distribution channel Division

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Pricing procedure Condition types

Nokia pricing procedure Nokia Condition Types

SALES DOCUMENT STYLE

Sales Documents In the following menu options, you define the control data for the various document types in sales. The control data refers to:
y y y

Document types Item categories Schedule line categories

You also define the following for the sales documents in the subsequent menu options:
y y y y y

Possible order reasons Possible reasons for rejection Various blocks Various order types Number ranges
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Noe complete the sales document style Documents are 1 sales order document 2 delivery doc 3 billing doc Quotation Order Rush order Cash sales Inquiry Contract Schedule agreement qt or ro cs in nms ds

The path is Img sales and distributions area to sales doc type Double click Then double click on combine sales org then click on position give ales org name then save it sales sales doc sales doc header assign sales

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Reference sales organization

NKSL

Now double click on combine distribution channel Give sales organization name

Reference Distribution Channel Now combine division

Make a New entry

ND

Reference divisions

NM
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Assign sales order type permitted to sales area

Sales org NKSL NKSL NKSL NKSL NKSL NKSL NKSL

Distribution channel ND ND ND ND ND ND ND

Division NM NM NM NM NM NM NM

Sales order types OR RO IN QT CS NMS DS

Description Standard order Rush order Inquiry Quotation Cash sales Quantity Contract Scheduling agreement

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SALES ORDER CYCLE

1. INQUIRY It is a customer request to the company for the quotation for distributing goods and services. Creation of Inquiry (VA11) A new Inquiry is created only when the authorized person at Depot receives an Inquiry from an existing or new Non Trade Customer The path for inquiry Sap easy access T code is VA11 Inquiry type IN The required details to create an inquiry is inquiry type IN logistics sales and distribution sales inquiry

Now double click on your material And click on shipping And give storage location

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Now click on condition And give conditions

Then click on the schedule line and edit on incompletion log save the document if the document is complete

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One inquiry no. will be generate Material Inquiry no. Now go to quotation It is an offer to customer for specific area. The path is Easy access logistics sales and distribution sales quotation Pager 10000135

Or use T code VA21 Give quotation type QT Your sales organization then enter Give sold to party Valid date material and quotation quantity Then double click on your material and follow the same as in inquiry

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Material Quotation no./ Offer It will generate a quotation no. 2 ORDER

Pager 20000138

We need customer material information, price information about financial statement of items. Delivery date and the quantity, and shipping information of customer. 1. Creation of Sales Order for a Trade Customer (VA01) A Sales order is created when a purchase order is got from the Trade Customer. 2. Creation of Sales Order with reference to a Quotation (Non-Trade customer) (VA01) A Sales Order created when a Purchase Order received from the Customer w/out reference to a Quotation 3. Creation of Sales Order for delivery of material from another depot (VA01) A delivery from another Depot directly to Customer shall be created on the Decision of the Depot In charge. ORDER PROCESS y y y y y Customer and material information. Price information about financial statement of an item. Delivery date and Quantity. Shipping information. Billing information.

Parties involved in Order process 1. Sold to Party: Party who placed the order. 2. Ship to Party: Party who receives the order. 3. Bill to Party: Party who receives the invoice.
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4. Pay to Party: Party who pay the bill. The path is Sap easy access T code is VA01 We give order type OR We give all the required things like before as in inquiry and in quotation we will follow the same process It will generate an order no. logistics sales and distribution sales order

Material Standard order

Pager 8347

3 OUTLINE AGREEMENT It can be of two types: 1. Scheduling agreement 2. Contract

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The difference between contract and schedule agreement is as follows Contract 1 no schedule 2 validity period 3 doc. Type NMS 4 t code VA41

Schedule agreement Schedule line Validity period Do. Type DS T code VA31 4 CONTRACT Contract is where you have a contract with the vendor, may be a for a predetermined quantity or predefined value. So every time you need the material, we need to make PO ref the contract asking for the delivery of the material. In such instance when PO is ref with contract its called contract release orders or call off orders. The path of contract Easy access T code VA41 Give contract type nms We will give sold to party then Po no. validity dates material then double click on material then click on shipping give storage location click on condition give condition edit on incompletion log save the doc. It will generate a contract no logistics sales and distribution contract

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Material Quantity contract SCHEDULING AGREEMENT

Pager 40000110

Scheduling agreement is a long term purchase agreement, where you will keep issuing the delivery schedules whenever there is a change in requirement or at predetermined time intervals. The delivery schedule can be on hour/daily/weekly/monthly basis. But it will contain different zones viz. firm/tradeoff/Forecast. Firm zone schedules are confirmed requirement and need to be taken by ordered party. Tradeoff zone requirement is to purchase the raw materials and ordering party is liable to pay raw material cost, in case of requirement cancellation. Forecast zone requirement is to help the vendor to plan his requirements. SA is also an agreement with the vendor for the supply of material, may be a quantity or value. The delivery dates will be maintained in ME38 ref the SA which are called delivery schedules. So you can maintain the delivery schedule and communicate the vendor on Forecast basis or JIT basis. And when you need some more material then will only create SA deliveries using ME38. SA could be of 2 types:- without release documentation-system will transmit the delivery info to the vendor once you save the document.

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Path is Sap easy access T code is VA31 Give schedule agreement type Sales area, division and distribution channel Then enter and give Sold to party validity material give quantity and enter Double click on material click on shipping give storage location click on condition give condition type then schedule agreement and give delivery date and order quantity then incompletion log and save the doc logistics sales and distribution sales schedule agreement

Material Scheduling agreement

pager 30000072

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OUTBOUND DELIVERY
We can create an outbound delivery in a shipping point for orders that are due for delivery. The SAP System copies the relevant data from the order (one or many order) to the outbound delivery. We can create one or several outbound deliveries from the order. We can also combine items from several orders into one outbound delivery. Delivery Process: 1. Order number 2. Confirmation date 3. Shipping point The path is Sap easy access out bound delivery T code VL01N We have to give shipping point logistics create sales and distribution single document shipping and transportation

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Give selection date that will be same as order date Click on picking See the status give pick quantity that will be same as delivery quantity Enter status will be changed

Order Delivery number Click on post goods issue

8323 80011344

If there is any error log then go to goods movement data Change the doc. Date And enter it will generate anew delivery no Now we do

Billing
Billing represents the final processing stage for a business transaction in sales and distribution. Information on billing is available at every stage of order processing and delivery processing. This component includes the following functions: y Creation of I. Invoices based on deliveries and services. II. Issue Debit and Credit memo.
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y y y y

III. Pro forma invoices. Cancel billing transactions. Comprehensive pricing functions. Issue rebates. Transfer billing data to Financial Accounting (FI).

The [path is] Easy access create T code is VF01 logistics sales and distribution billing billing document

Material Billing document

Pager 90033120

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Findings

y y y y y y y

Enables you to build repeatable business processes, and to automate your processes Enables you to build repeatable business processes, and to automate your processes Allows you to implement complex business processes Takes care that each step of your workflow is assigned to the right person It is tightly linked to Business Object Repository Workflows can be started whenever a predefined event occurs You can use an existing organizational structure to have the relevant users carry out the Individual activities

You can run detailed reports on the workflow process itself, such as how often each workflow was executed, what was the average execution time, how long did it take people to react to items in their inbox, etc.

y y

For each step, you can define deadline monitoring Many SAP applications such as ERP, CRM, SRM, and others, deliver predefined workflows.

y y y

You can either use them without any changes or do minor changes according to your Companys requirements. This significantly brings down implementation time. There is a huge number of existing knowledge on SAP Business Workflow worldwide.

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Limitations

the SAP Business Workflow can do external calls, however it works best and is mainly used to handle business processes within one SAP system. No record authorization management (check-out) Missing interfaces to ERP, e.g., to refer to an HR Organization structure Routing based on an organizational structure (e.g., to determine the approver based on an organizational hierarchy), or on an attribute (e.g., to determine the approver according to the product's group) is not supported No flexible jumps supported, i.e., it is not possible to route to any workflow step (e.g., in case of a disapproval, the approval step can only return to the previous workflow step) Changing business rules at runtime is not supported (e.g., in case that an approver is determined depending on product group, it should be possible to change mapping at run time

y y y

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Conclusion

1. Integration can be the highest benefit of SAP. The only real project aim for implementing ERP is reducing data redudancy and redudant data entry. If this is set as a goal, to automate inventory posting to G/L, then it might be a successful project. ERP improves the cooperation of users.

2. I think individual efficiency can suffer by implementing ERP. The big question with ERP is whether the benefit of integration and cooperation can make up for the loss in personal efficiency or not.

3. It reduces cost only if the company took accounting and reporting seriously even before implementation and had put a lot of manual effort in it. If they didn't care about it, if they just did some simple accounting to fill mandatory statements and if internal reporting did not exists of has not been financially-oriented, then no cost is reduced.

4. Less reporting or accounting personnel, but more sales assistants etc.

5. What ERP does is makes the lives of inaccurate people or organization a complete hell and maybe forces them to be accurate (which means hiring more people or distributing work better), or it falls.

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Bibliography
Books SAP HR Personnel Administration

Websites: y y y y y y y y www.sap-img.com www.sap.com www.wiki.answers.com www.searchsap.techtarget.com www.sapdb.org www.google.com www.help.sap.com www.sdn.sap.com

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