Think Tree Technologies , Inc

SAP Sales & Distribution

By Dilip K Sadh
 Dilip K Sadh
Background Relevant Relevant SAP Experience
Selected
Dilip is President of Kabeer Consulting Inc , Think Tree Technologies, Inc and
Kabeer InfoTech Systems India Pvt Ltd. Selected clients served as SAP implementer
Dilip Sadh was an Associate Partner at IBM in the USA. Also worked as Sr • Reebok / Adidas : USA
Director with Accenture and Capegmini in USA.
• Bose Corp : USA
He has total of 15 years of experience in SAP implementation.
• Kellogg’s : USA / Maxico / Brazil
Dilip is a visiting Professor at Indiana University of Pennsylvania (IUP) for MBA
course. • Lucent Technologies: USA
He has been visiting faculty to various universities across the globe like • Colgate Palmolive : Russia , Poland
Massachusetts Institute of Technologies (MIT), North Eastern, IUP,IIT Delhi,
• Clorox : USA
IMT Ghaziabad , FORE school of Management etc.
• Stanley Works : USA & Canada
He has taught over 3000 students in SAP SD/CRM , MM/WM, CS modules
etc. • Degussa Chemicals : USA & Germany
He is written several papers on Supply chain Management topics. • Southern wine Sprits of America : USA
Dilip holds a Bachelors of degree in Mechanical Engineering.
• Bhartia Cutler Hammer : India
• Samsung India : India
SAP Platinum level Expertise
• CDAC India
Functional/Technical Knowledge: Industry Experience:
• SAP AFS
• Apparel & Footwear Selected Clients served as SAP Knowledge provider (Trainer / Thought
• Sales & Distribution • Consumer Packaged leadership)
• Material Management • Chemicals • Indian Oil corporation Ltd : India
• Medical Devices • Engineers India Ltd : India
• Logistics Execution
• Telecommunication • National Thermal Power Corporation (NTPC) : India
• SAP CRM
• Electronics products
• Gas Authority of India Ltd (GAIL) : India
• SAP GTS • Industrial Products

• SAP CS • Whole Sales

Dilip K Sadh2
 Summary

Overview

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions

3 Think Tree Technologies , Inc Dilip K Sadh

Overview

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions
 Overview : the SAP - R/3 system

 SAP is a fully integrated system:

- Finance and Control

- Sales and Distribution,
- Materials Management,
- Production, etc...
SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials Controlling
PP Mgmt. A
Product Assets
Plannin Accounting
g
IM
R/3 Invest
Management

QM PS
Project
System
Quality
Mgmt.
PM OC
Plant Mainte- Office &
nance Communi-
HR
Human IS cation
Industry
Resources Solutions

5 Think Tree Technologies , Inc Dilip K Sadh

 Summary
Overview

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions

6 Think Tree Technologies , Inc Dilip K Sadh

SD Functionality
The SAP SD module enables us to integrate and optimise all activities from
sales, through delivery and billing.

Master data
Functionality

Customer Pre-Sales
Request

Sales information system

Material Quotations
Cust/material
Sales
info records -Order -Contract
Pricing -Delivery schedule

Texts Delivery Delivery

Picking Transport
Classification
Single billing documents Billing
Collective billing
Debit & credit notes

ORGANISATIONAL STRUCTURE
SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery
scheduling

Delivery
Billing
The information system
 SD organisational structure : Sales organisation
 A sales organisation:
- can have its own prices, customer- and material sales data while sharing the
customers and materials with other companies on the same SAP system
- is an important selection criterium for reporting

Company 1

Sales Org.

9 Think Tree Technologies , Inc Dilip K Sadh

 SD organisational structure : Distribution channels

 Distribution channels allow us to split customers

and materials, for example :
- Retail customers
- Trade houses
- Direct sales
- E-Sales

Sales org. Sales

organisation
Distribution
Retail Trade Direct chanel

1 Think Tree Technologies , Inc Dilip K Sadh

 SD organisational structure : Divisions

 The division can be used if a further split of activities and product lines
is desired and it can be usefull to cover special requirements on:
- pricing,
- partial deliveries and
- payment terms

Sales org. Sales

organisation

Trade Retail Direct Distribution

channels

CAR Motorcycle Chemical

Divisions

1 Think Tree Technologies , Inc Dilip K Sadh

SD organisational structure : The sales force

Sales office New York Chicago

North South North South

Sales district

Sales group Mike Tom M ike

Julie

1 Think Tree Technologies , Inc Dilip K Sadh

 SD organisational structure : Shipping points

Philadelphia Boston
Plant

Shipping point Truck Rail

Loading point Dock 1 Dock 2

A shipping point is a place where you have one or more

loading points where goods are actually loaded.

1 Think Tree Technologies , Inc Dilip K Sadh

 SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Shipping point
determination Price
determination
Delivery scheduling

Delivery
Billing
The information system

1 Think Tree Technologies , Inc Dilip K Sadh

SD Master data
The risk of data redundancy is clearly reduced by centralised master
data maintenance and sharing master data across the different SAP
modules.

From a sales point of view, we can distinguish between two kinds of

master data which are of major importance:

 Customer master:
- Sold-to, ship-to etc.

 Material master:
- Finished goods
- Raw materials

1 Think Tree Technologies , Inc Dilip K Sadh

 SD Master data : Customer master
Customer master data can be maintained on
a generic or a sales area/company specific level. :

General data Address Marketing Control Contacts

Sales area data Admin.data

Sales Shipping Billing Administration Correspondence Payment Insurance

Business Partners
SD Customer master: Partner functions

In order to meet our customer requirements, we can define several

partner functions for one customer :

Sold-to

....... Ship-to

Partner Payer
Employee
functions

Carrier Bill-to

Ship-to 2
 SD Material master

This central piece of master data covers the requirements for many
functional areas: sales, production, purchasing, administration etc.

General data Sales

data
Warehouse
mber Description Unit of measure Weight data
. Purchase
data
Etc...
Financial
data

1 Think Tree Technologies , Inc Dilip K Sadh

SD FUNCTIONALITY :

Organisational structure
Master data
SD document flow
Pre sales

Sales: customer orders

Shipping point
determination Price
determination
Delivery scheduling

Delivery
Billing
The information system

1 Think Tree Technologies , Inc Dilip K Sadh

 Document flow: sales, delivery, billing.

Request
Sales documents

Quotation Contract

Free of
Order Delivery
charge Returns
confirmation schedule

Delivery documents
Delivery note ( CMR )

Debit Credit
Billing documents
Invoice
note note

2 Think Tree Technologies , Inc Dilip K Sadh

SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Shipping point
determination Price
determination
Delivery scheduling

Delivery
Billing
The information system

2 Think Tree Technologies , Inc Dilip K Sadh

PRE-SALES SALES DELIVERY BILLING
PAYMENT

The quotation
Pre sales activities :
register customer address
the details for the quotation
the quotation

Pre-sales
Customer: 1825
Valid from : 01/06/03
to : 31/12/03
Item Material Quantity
With material nr
10 Mat01 10
Without material nr 20 - 2
Description :
Mgr.desk oak Text
item
Item text: expected price
2980 euro/each

2 Think Tree Technologies , Inc Dilip K Sadh

 SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery
scheduling

Delivery
Billing
The information system

2 Think Tree Technologies , Inc Dilip K Sadh

 PRE-SALES SALES DELIVERY BILLING

PAYMENT

The customer order

The customer order usually contains:
customer & material details ,
price details per item
delivery relevant information
billing related information

Customer Deliv.+ payment

customer : 1825
details etc.

Price details Item Material Quantity

10 Mat01 10
Material
Cust/mat.nr etc. 20
30
Mat02
Mat03
20
30
24
Think Tree Technologies , Inc Dilip K Sadh
SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

2 Think Tree Technologies , Inc Dilip K Sadh

 PRE-SALES SALES DELIVERY BILLING
PAYMENT

Price determination
SAP automatically determines the price, surcharges,
deductions and taxes if relevant for this customer/material.

Condition type XXX1 Summer Promotion

Sales organisation MY01 MY Ice.com
Distr. channel Customer F1 Direct sales
Conditions Material
FRCL1DUBOIS & FILS
1234 ORDINATEUR
Deductions&Surcharges
- Per customer Validity period :
Price - Per material 01/07/04 - 01/10094
- List price
- Per customer group Price scale from:
-Customer
1000 EUR1,0 %
-Specific price - Per material/customer 2000 EUR2,0 %
-..... 3000 EUR3,0 %
-.....

2 Think Tree Technologies , Inc Dilip K Sadh

 SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

2 Think Tree Technologies , Inc Dilip K Sadh

 PRE-SALES SALES DELIVERY BILLING
PAYMENT

Backward scheduling from delivery date

Based on the requested delivery date and the time consumption during the delivery
process, we can confirm an availabilty date to the customer.

Requested deliv.date Transport planning Availabilty Loading date Date out of stock
Delivery
date

Check Transport
availability

times
Loading time

Picking time

2 Think Tree Technologies , Inc Dilip K Sadh

 Transport planning

2 Think Tree Technologies , Inc Dilip K Sadh

 SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery
scheduling

Delivery
Billing
The information system

2 Think Tree Technologies , Inc Dilip K Sadh

 PRE-SALES SALES DELIVERY BILLING PAYMENT

Delivery = all activities in the transport & shipping department.

Packing
Custmr Goods
order receipt

Picking

Goods issue

Delivery documents

Updated stock figures Delivery

3 Think Tree Technologies , Inc Dilip K Sadh

Delivery fullfillment

Delivery
Complete delivery Customer order

Delivery

Partial delivery Delivery

Customer order

Delivery

Customer order
Combined delivery Delivery
Customer order
The delivery due list
Overview and selection criteria

Date Shipp. Custmr Date Shipp. Custmr

point order point order
15 Nov 001 120 15 Nov 001 120 Delivery
15 Nov 002 121
16 Nov 001 122 16 Nov 001 122 Delivery
17 Nov 001 123 17 Nov 001 123
Delivery
18 Nov 001 124

Shipping point : 001 Dates : Protokol

From 15 Nov-17 Nov
Selection
criteria
Goods issue

 The consequences of a goods issue :

- The stock quantity is reduced

- The stock value is reduced
- The stock reservations are reduced
- The document flow is updated
- The document will be included in the billing due list
 SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery
scheduling

Delivery
Billing
The information system

3 Think Tree Technologies , Inc Dilip K Sadh

PRE-SALES SALES DELIVERY BILLING PAYMENT

Billing :
-creating invoices for deliveries and services

-creating debit- and credit notes

- update the billing due list

- transfer billing data to finance

The release of billing documents to accounting can be automated.

Billing

3 Think Tree Technologies , Inc Dilip K Sadh

 Different kinds of billing
Billing per delivery Collective billing
Delivery Invoice Sales
Delivery
Sales order order

Delivery Invoice

Sales Invoice
Delivery
order

Billing split
Invoice

Sales
Delivery Sales order
order Delivery
Invoice
The consequences of billing

 A billing document results in :

- An accounting document
- Update the billing status of the customer
- Update of the statistics (sales, Intrastat)
- Update profit center data etc.
And… , a last step in the management
cycle of the customer orders.

Payment by the customer means :

linking payments to billing documents
verify and action differences if needed

Payment
Cde
Client

The document flow

Quotation : 170000
Sales order : 900
. Delivery : 80000459
..Picking request : 17951109
..Goods issue : 49001828
.. Invoice : 90000333
…Accounting doc : 1000000276
- The documents represent the SAP transactions.
- The transactions are linked and form a documents chain
- The document chain froms the document flow
 SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Shipping point
determination Price
determination
Delivery scheduling

Delivery
Billing
The information system

4 Think Tree Technologies , Inc Dilip K Sadh

 The information system
The Logistics Information System (LIS) is a permanent on line
management and analysis tool within SAP.

Time
Characteristics 2
interval

32 35500 Ratios
1252

Sales Distr Custo Customer Customer Order

orf. . mer Orders invoices book
Cha
n nel
 Please note that the LIS functionality is limited.
Further functionality is available via Controlling &
Profitability Analysis (Co-PA) and the datawarehouse
(BW)
Summary
 Overview

 Order to cash

 SD (Sales and Distribution) functionality

 Integration in SAP

 Conclusions
 Integration in the logistic chain
Here we come to one of the big advantages of SAP, complete integration.
Finance & Control
Resource management
Capacity, Material, Production & equipment

Customer order
Sales & Distribution Billing
Delivery

Dispo check Create OrderProduction

Production Product
ion Capacities
planningorder
plan

Stock update Purch. Req. Pur. order ReceiptInvoice Verific.

Process Pur.req.
Purchase
QM

Logistics management Sales, Production, Purchase, Warehousing

?
Thank you !