Sales and distribution

OVERVIEW

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

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Organizational entities

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 Organizational entities
• Company code
Independant accounting unit
Legal entity

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

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

• Storage location
Place where stock is physically kept within a plant

• Shipping point
Fix location that carries out shipping activities

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 AGENDA : SD sessions

SD Overview organizational entities

Order entry flow
Break
Distribution flow
Billing and reporting
End

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Overview processes in sales and distribution

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 Sales order entry

• Sales order creation based on master data

– Customer
– Material see further for details
– Prices
• During creation, you have to enter
– Sales organisation
– Customer
– Material and quantity
– Delivery date
and the rest is determined automatically in background

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 Sales order entry: background

• Credit check
– Warning / block order

• Automatic pricing

• Availability control

• Creation documents (output)

– Order confirmation
– Use of texts from customer / material

• Incompletion check
– payment terms
– pricing
– Taxes

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Sales order entry : availability check

ATP

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Sales order entry: header and item

customer

materials

Customer material number

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 Sales order entry: pricing

Price is determined automatically

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Sales order entry: order confirmation

Article details Price details

Delivery address

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 AGENDA : SD sessions

SD Overview organizational entities

Order entry flow
Distribution flow
Billing and reporting
End

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Overview processes in sales and distribution

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Delivery-Shipping Processing Overview

Sales Delivery
order

•Sales order •Create delivery •Picking list •Picking

•Goods issue •Delivery note •Update stock

•Post general ledger

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 Delivery creation

• Checking list: for which orders deliveries need to be created to

deliver goods in time

• No more extra data need to be entered  automatic creation

• Picking list is printed automatically:

– When to get the goods and how much
– Add name of carrier and license number
– Add number and type of pallets

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Output picking list

Name of carrier License number

Loading date

Materials

Pallets

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 Administrative update delivery

• Enter picking details in SAP

• Post goods issue

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 Output delivery note

• After goods issue, the delivery note is printed

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

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 AGENDA : SD sessions

SD Overview organizational entities

Order entry flow
Distribution flow
Billing and reporting

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Overview processes in sales and distribution

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Billing: invoice creation

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Billing: effects of creating an invoice
Invoice

Custom
Creating an invoice:
A/R
er
Credit
X
automatically creates an accounting
Record document that updates the general
ledger account for revenue.
updates the status in all related
sales, delivery, and billing
Profitability Analysis
documents.
Sales Information System
updates the customer’s credit
record.
updates sales statistics for the
Delivery
Sales Information System.

Sales order
updates controlling elements such
as profitability analysis and profit
center accounting.

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Invoice

Details delivered goods

Payment terms

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Document flow
Quotation Order Delivery Invoice

Returns Delivery Credit

for returns

Document flow of an order

Quotation
. Order
. . Delivery
. . . Invoice
. . Returns
. . . Returns delivery
. . . . Credit for
. returns
.
.
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 Reporting: sales information system
Customer analyses
Sales org billed qty billed value
Drill down
Additional by customer 0800 500 3000
Information

-Material master Customer billed qty billed value

-Customer master
Functions
BELLO 300 1800 -Drill down
-Documents DIA 200 1200
Drill down
by period
-Filters
-ABC Analysis
Customer BELLO -Graphics
Month billed qty billed value
-…
Feb 05 100 600
Mar 05 200 1200

… and lots of other possibilities to report and analyse data

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 AGENDA : SD sessions

Example flow in SAP

Master data
Intercompany flow
Transportation

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Sales order entry

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Sales order entry

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Sales order entry – ship-to

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Sales order entry

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Sales order entry - pricing

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Sales order entry - pricing

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Output order acknowledgement

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Delivery creation

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Delivery creation: materials

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Delivery creation: batches per material

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Delivery scheduling

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Output pick list

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Delivery processing

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Delivery processing

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Output delivery note

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Billing

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Billing

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Output invoice

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 AGENDA : SD sessions

Example flow in SAP

Master data
Intercompany flow
Transportation
End

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 Master data: overview

• Customer master data

• Material master data

• Different price types

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 Master data customer: business partners

• Different types of business partners

– Sold-to party
Places the sales order

– Ship-to party
Receives the goods

– Bill-to party
Receives and verifies the invoices

– Payer
Pays the invoices

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Master data customer: kind of data
Customer
General data
Customer Customer
Company code data Sales area data

•General data •Sales area data

–Name
–Sales district
–Address
–Customer group
–VAT number
–Incoterms
–Telephone number
–Business partners
•Company code data
–Payment terms
–Reconciliation account

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 Master data material

Integrates data from

- Manufacturing
- Sales and distribution
- Purchasing
- Accounting
- …

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 Master data prices: determination price
Prices are called condition records in SAP
• Price procedure linked to order type
• Price procedure consist of different
condition types:
– Sales price
– Discount
– Surcharge
– …
• Each condition type has different
levels: access sequence level
• Data about conditions are stored in
condition records

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 Master data upload

• Special templates for upload

– Business partners
– Prices
– Scales for prices

• Optional, mandatory and default fields

• Certain checks already build in

– Example: lenght postal code

• Examples: see excel sheets

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 AGENDA : SD sessions

Example flow in SAP

Master data
Intercompany flow
Transportation

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Intercompany
Purchase
Order

IC customer
10
20 IC vendor
MRP
Stock transport
Order (Planned order)

Delivery
Due List

Delivery
Transport planning
Picking
B B
A C D
E
Goods receipt A C D
E
Goods issue

Invoice
EDI
IC
receipt Invoice

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 AGENDA : SD sessions

Example flow in SAP

Master data
Intercompany flow
Transportation
End

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7

Transportation : Objective

= Assign transport costs to outgoing logistical flows

• integrated profitability analysis

• analysis on customer, organisational or product level

(MIS)

• tool for invoice checking

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8

Transportation : Principles

• Shipments = group of deliveries loaded on one truck.

• Shipments serve as a basis for a shipment cost
document.
• Shipment costs are calculated using transport price
conditions, maintained in the system.
• Shipment costs will be transfered as provisions on
transport purchase orders, which are used for
transport invoice checking and registration.

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9

Transportation : Diagram (1)

Order
Shipment
Delivery

Transport
Conditions

Shipment Cost

Invoice

Transp. Purch. Order Transport

Invoices

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0

Transportation : Diagram (2)

Order
SD
Shipment TRANS
Delivery

Transport
Conditions

Shipment Cost

Invoice

MM Transp. Purch. Order Transport

Invoices

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 Transportation : Background creation
1

of shipments and shipment costs

Shipments and shipment costs plus transfer to transport

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

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2

Transportation : Diagram (4)

Order
SD
Shipment TRANS
Delivery Inter Cust Intra Exw
- Ship-to
- Carrier Transport
- Shipping point
- Transport ID
Conditions
- Incoterm
Shipment Cost
Inter Cust Intra
Invoice

MM Transp. Purch. Order Transport

Inter Cust Intra Invoices

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 Transportation : Transport purchase
3

orders

• Validity period = month

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

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4

Transportation : Transport conditions

According to meet different ways of transport pricing (fix,

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

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5

Transportation : Transport conditions

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6

Transportation : Follow up

Daily follow up control reports:

• all deliveries in a shipment?
• all shipments costed?
• shipment cost correctness
• shipment cost transfer
• provisioned transport costs vs received invoices
Manual creation/modification possible

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Questions

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Questions

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