SAP SD Presentation by Suresh

8/13/2019 SAP SD Presentation by Suresh

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• Name : Suresh Chandran• Current Employer : IBM – USA• Current Client : Caterpillar (USA• Education : - MBA from IIM (Bangalore)

- PGDM (Finance) from

University of Texas (Arlington)• 6 yrs - Industry Experience and , 11 yrs in SAP

• Industries worked :• ITC , L&T, GM (USA), Pepsi (USA),• IBM (India), Accenture (USA) & IBM (USA)



Sales and Distribution (SD)Overview

Prepared by : Suresh Chandran



WHY SAP ? Follows a worldwide standard approach in assessing client projects.

Uses standardized procedures and functionalities

Provides the client with a formal report of findings andrecommendations and also enable in analyzing, research, businessenhancement and expansion.



What a Consultant Does ?The SAP Consultants :

– undertakes the implementation process providing E2E solution. – understands clients business requirements and advices the client for

best business practices using SAP Tools. – have insight into where the process / product is heading. – have understanding of what’s in the next phases or release(s). – have access to developers to ensure answers to issues

The SAP consultant be heavily involved with process design andconfigurations, therefore:

– can provide a new perspective on issues and current approaches – is not constrained by previous discussions , politics, and previous design

iterations



Customer BenefitsMinimizes the risk within the project and ongoing productive system byhaving a highly experienced, independent party determine if:

– the proposed design is robust, realistic, pragmatic, maintainable, andsupportable.

–the

configured system supports the design is maintainable, supportable andpractical.

– the live system makes optimal use of the SAP system.

Identifies project risk factors early in the timeline.

Increases efficiency and effectiveness of the SAP solution.

Helps ensure successful implementations and a smooth productiveoperation.



Industries in SAP



ASAP Methodology - Recommended timing for reviews



ASAP MethodologyDescription :

AcceleratedSAP (ASAP) provides a proven, comprehensive, repeatable and richimplementation methodology to streamline projects.

ASAP covers :1. Preparation2. Business Blueprint3. Configuration/Realization4. Final Preparation5. Go-Live & Support

(For all stages, Documentation is MUST.)



ASAP Methodology ……Contd Benefits

• Reduced total cost of implementation through streamlined and modularimplementation roadmap that provides content rich implementation accelerators,templates and guides.

• Industry standard aligned project management process and guidelines.• Achieve transparency of value delivery through consistent business case reflection.• Enables efficient project governance and quality management.• Drive combined Business Process and IT Architecture approach (E2E).• Covers entire project life-cycle – from evaluation through delivery to post

project solution mgmt and operations.

• Delivers revised content in all traditional ASAP areas – Project management, SAPSolution Manager.

• Organizational change management, training, blueprinting, realization, cutoverplanning and execution, and others.



SAP - Sales and Distribution (SD)Overview



R/3

FIFinancial

Accounting

COControlling

PSProjectSystem

WFWorkflow

ISIndustrySolutions

MMMaterials

Mgmt.

HRHumanResources

SDSales &

Distribution

PPProduction

Planning

QMQuality

ManagementPM

Plant Maintenance

SMService

Manage-ment Integrated Solution

Client / ServerOpen Systems

ECEnterpriseControlling

AMFixed Assets

Mgmt.





SAP System Landscape



Sales & Distribution (SD)• Mechanisms to execute the business processes used in

the selling, shippingand billing of products and services

• Tightly coupled data flow to the other SAP modules — Integration

• Flexible and robust functionality that is tailored throughconfiguration



SD Components

Sales Support

MasterData

Shipping

Sales

ForeignTrade

Billing

SalesInfo

System

Transportation



SD Overview — Master Data• Information about

CustomersMaterials

Price• Flexible data structures that support the business

environment• Specialized master data to support sales order

processing



SD Overview — Sales Support

• Provides the functionality to support the staff involved inbusiness development and customer service processes

• Primary functions – Sales Prospects – Contact Persons – Competitors and Competitive Products – Sales Activities – Direct Marketing



SD Overview — Sales

• Primary base for customerorder management

• Highly customizable

• Sophisticated pricing• Integrated ATP• Integrated credit management

• Sampling of functions : – Inquiries & Quotes – Sales Orders – Returns – Contracts & Scheduling

Agreements – Consignment – Rush Orders & Cash Sales – Back Orders & Subsequent

Deliveries – Credit & Debit Memo

Requests



SD Overview — Shipping• Main functions

– Picking, Packing & Inventory management – Generate Shipping Documents

• Transportation Management – Routes – Transportation Scheduling

• Delivery Scheduling, Returns Deliveries & StockTransfer



SD Overview — Billing

• Invoice Generation — automatic or manual

• Comprehensive set of billing functions

• Linked documents — e.g. invoice & credit memo

• Real-time integration with finance (FI)

• Fully integrated and comprehensive pricing



SD Overview — S I S

• Flexible tool that allows one to collect, consolidate, and utilize datafrom sales and distribution processing

• A component of the Logistic Information System (LIS)



Sales & Distribution

- Process Flow -



Supply Chain Process

Customer Order Picking Goods Issue

BillingAccounts ReceivableFinal Payment



SD - Cycle



SAP Process Steps

Quotation SalesOrder

Sales

ShippingDelivery

Note PickingPost Goods

Issue

Billing Billing

FIA/R

PostIncomingPayment



Sales — Inquiry & Quotation

• Support pre-sales processes• Are time sensitive

• Automatic availability check• Automatic pricing• No impact to FI• Can be used as reference documents



Sales — Sales Order

• Core of customer ordermanagement

• No impact to G/L• Can reference existing

documents• Copies key information

from master data

• Automated standardfunctions ... – availability check – MRP updating – pricing – credit check – delivery scheduling – export control

– shipping & route determination



Shipping — Delivery Note

• Initiates the shipping process• Control document for shipping processes — maintains status of

each processing step

• Re-confirms: availability, credit, foreign trade, delivery scheduling• Facilitates transportation planning



Shipping — Picking & Packing

• Picking: Physical activity of moving goods from thewarehouse for further processing (packing, loading)

• Packing: Determines packing materials and packingdetails

• Advanced processing includes, e.g. batch mgmt., serialnumber control





Billing• Generate customer invoice

• Updates FI

– Customer account – G/L accounts: revenue, discount, etc.

• Applies relevant pricing

• Updates customer credit




- Organizational Structures -



Sales Organization

Baseball Division

BB

Softball Division

SB

Direct Distribution Channel

DI

Baseball Division

BB

Softball Division

SB

Wholesale Distribution Channel

WH

Baseball Division

BB

Softball Division

SB

Retail Distribution Channel

RE

Domestic Sales Sales Organization

So00

Baseball Division

BB

Cricket Division

SB


WH

Europe Sales Organization

EURO

Baseball Division

BB


WH

Asia Pacific Sales Organization

APAC

SC Corporation

Company Code CC00

Client 860



Sales Organization

• Sells and distributes products, negotiates terms of salesand is responsible for these business transactions

• Critical organization element to the definition of businessmarkets

• A business transaction is linked to one SalesOrganization



Distribution Channel

• Identifies how products and services reach the customer

• Can be assigned to one or more Sales Organizations



Division• Often times used to define product line

distribution• Organization level to which customer

specific information and requirements aremaintained — e.g. pricing, partial delivery• Assigned to one or more Sales

Organizations



Sales Area• Organizational element comprised of:

– Sales Organization – Distribution Channel – Division

• Will be used to link together the organizational aspectsof sales to customers

• Used for statistical analysis



Sales Area

Domestic SalesSales Organization

SO00

DirectDistribution Channel

DI

WholesaleDistribution Channel

WH

RetailDistribution Channel

RE

BaseballDivision

BB

SoftballDivision

SB

BaseballDivision

BB

SoftballDivision

SB

BaseballDivision

BB

SoftballDivision

SB



Sales Office

• Typically defines a territory or market area• Linked to one or more Sales Areas• Optional organization structure



Internal Sales Organization

DomesticSales Area

WesternSales Office

EasternSales Office



Sales Group

• Sales Group – Sub-division of a sales office, territory or

market



Sales Person

• Sales Person – Defined in HR — Personnel Admin. – Specifically defines an individual rather than a

position (sales rep.) in sales processing



Internal Sales Organization

DomesticSales Area

WesternSales Office

EasternSales Office

SouthwestSales Group

NorthwestSales Group

SalesPerson

SalesPerson

SalesPerson

SoutheastSales Group

NortheastSales Group

SalesPerson

SalesPerson



Shipping Point & Loading Point

• Shipping Point – Location that performs all delivery related activities – Assigned a factory calendar – A delivery can be processed from only one shipping

point• Loading Point

– A subdivision of the shipping point used for morespecialized handling



Shipping Organization

Dock #1Loading Pt

D1

Dock #2Loading Pt

D2

Freight DockShipping Pt

SP00

Dock #3Loading Pt

EX

ExpressShipping Pt

QUIK

Dock #2Loading Pt

XP

ExportShipping Pt

EXPT

Sioux FallsPLANTPT00




- Master Data -



SD Master Data - Core Elements

MasterData

Pricing

Material Master Sales: sales org 1



-General Data

Basic Unit of Measure

DivisionMaterial Group

Sales Unit

Delivering Plant

Cash discount-Tax data

Country

Tax category

Tax classification

-Quantity stipulations

Min. order quantity

Min. delivery quantity

Delivery unit

Material Master — Sales: sales org. 1Basic Data 1 - 2

Classification

Sales: sales org. 1 - 2

Sales: general/plant

Purchasing

Foreign Trade: Import Data

Sales: text

Purchase order: text

MRP 1 - 4

Forecasting

Storage 1 - 2

Warehouse Management 1 - 2

Quality Management

Accounting 1 - 2

Costing 1 - 2



Material Master — General Data

Base Unit of Measure The Base Unit of Measure is the unit of measure in which stocks are managed within your company.

Division You may enter the Division which your product is infor sales (defaults if entered in the Basic data screen).

Material Group A (freely definable) key that’s used to group severalmaterials or services for analysis/reporting as well assearch by match code.

Sales Unit This is the unit of measure in which the material issold, if different from the base unit of measure.

Delivering Plant Plant, from which the material is available for sale. This is a default value only.

Cash discount Indicator used for materials, which allow for a cashdiscount.



Material Master — Tax data &Quantity stipulations

Tax data

Country Country

Tax category Taxes, applicable to this material (e.g. Federal, Statetaxes in US, VAT in GB)

Tax classification taxable, exempt

Quantity stipulations

Min. order quantity Min. quantity a customer can order (in base unit ofmeasure).

Min. delivery quantity Min. delivery quantity to a customer.

Delivery unit Only multiples of this number will be delivered to thecustomer.

i l S l l



-Grouping terms

Matl statistics group

Material pricing grp

Volume rebate group

Acct assignment grp

Commission group

Item Category group

Material Master — Sales: sales org.Basic Data 1 - 2

Classification



Purchasing


Sales: text


MRP 1 - 4

Forecasting

Storage 1 - 2


Quality Management

Accounting 1 - 2

Costing 1 - 2



Material Master — Grouping terms

Matl statistics group Helps to determine which data the system updates in theLogistics Information System (LIS).

Material pricing grp A way to group materials with similar pricing conditions.

Volume rebate group A material can be assigned to a volume rebate group (e.g.Low Rebate, High Rebate) if the material qualifies for rebate.

Acct assignment grp A grouping of materials with the same accountingrequirements (used to determine revenue and sales deductionaccounts)

Commission group Several materials can be assigned to the same commissiongroup, if the commission sharing between representatives isthe same for these materials (e.g. Rep.A: 6%, Rep.B: 10%,Rep C: 12%).

Item Category group A grouping of materials, that helps the system determine theItem Category. Item Category determines how a specific itemis processed by system. E.g. a text item is not relevant forpricing.

Material Master Sales: general/plant



General data

Base unit

Gross weight

Net weight

Avail. Check

Shipping data (times in days)Trans. Grp

LoadingGrp

Packaging material data

Matl grp ship. matls

General plant parameters

Negative stock

Material Master — Sales: general/plant Basic Data 1 - 2

Classification



Purchasing


Sales text


MRP 1 - 4

Forecasting

Storage 1 - 2


Quality Management

Accounting 1 - 2

Costing 1 - 2

Material Master General data & Shipping



Material Master — General data & Shippingdata (times in days)

General dataBase unit The Base Unit of Measure is the unit of measure in which

stocks are managed within your company.

Gross weight In Base Units of Measure.

Net weight In Base Units of Measure.

Avail. Check Tells the system when to do an availability check, as well aswhich MRP elements (such as purchase orders,reservations) to include in the check.

Shipping data (times in days)

Trans. Grp Transportation groups are groups of materials that have

the same transportation requirements. For example, allgoods that need refrigeration.

Loading Grp Loading groups define materials that have the same loadingrequirements, such as forklift truck, or crane.

M i l M P k i i l d &



Material Master — Packaging material data &General plant parameters

Packaging material data

Matl grp ship. matls, or

Material group shipping materials Freely definable group name, which is used to

indicate groups of materials with similarshipping materials, such as liquids or bulk, forexample.

General plant parameters

Negative stock Check mark indicator, which specifies whethernegative stock is allowed at that plant.

M t i l M t S l t t



- Sales texts Text

specific to

the material

and in an

appropriate

language.

Material Master — Sales texts Basic Data 1 - 2

Classification



Purchasing


Sales text


MRP 1 - 4

Forecasting

Storage 1 - 2


Quality Management

Accounting 1 - 2

Costing 1 - 2

A G



Account Groups

• Account group determines which fieldsare to be used in defining customer

master data



Field Status

Field status controls the use of each field within thecustomer master determining whether a field isrequired, optional, suppressed or display only

Field status controls are also relevant to a specificactivity — create, change, or display




- Customer Master -



Customer Master

Sales & DistributionData

Company CodeData

General

Data



Customer Master

• Centralized data for both SD & FI• Segmented into three sections

– General data - address & communication

– Company code data (FI) - banking andpayment information related to FI – Sales data (SD) - pricing, delivery, output

• The sales data is specific to one salesarea and is therefore dependent on thesales organization



Customer Master by Sales Area

Customer• Sales Organization

• Distribution Channel• Division

Customer Master Address &



General Data — Ad dres sCustomer Name

Search Term

Street address, City,

Postal code, Country

Language

General Data—

Comm unicat ion Telephone, Fax, Data numbers

Customer Master — Address &Communication



Customer Master — Control Data

General data—

Contro l da ta

Account control : Vendor, AuthorizationTrading partner, Group key

Tax information : Tax codes, Fiscal address

Country code, City codeVAT N, Tax jurisdiction codeEqualization tax, Sole proprietorTax on sls/pur.

Reference data / area : International Locator No.

Industry: Transport ZoneExpress stationTrain stationLocation code

k



General Data — Market ing

Classification : Nielsen IDCustomer classificationIndustry

Industry codes

Operating figures : Annual salesNumber of employeesFiscal year variant

Sales prospecting : Legal status

Customer Master — Marketing



General Data — Paym ent Transact ions

Bank details Country

Bank KeyAccount holderBank AccountControl KeyCollection

Customer Master — PaymentTransactions

Customer Master — Unloading Point



General Data — Unload ing p o in t s

Unloading point

Customer factory calendar

Default Unloading Point

Goods receiving hours

Customer Master Unloading Point

C M F i T d



General Data —

Foreign t rade

Country key for export control of customer

Table of Denial Orders list (TDO)

Special Designated Nationals list (SDN)

Diversion High Risk Profile list (DHRP)

Usage and Classification

Customer Master — Foreign Trade

Customer Master Contact Persons



General Data — Contac t persons

Name

Telephone number

Department

First name

Form of address (e.g. Mr., Ms.)

Function

Customer Master — Contact Persons

Customer Master — Accounting



Accounting info Reconciliation AccountSort keyHead office

Interest calculation Interest indicatorInterest calculation frequencyLast key date

Reference data Buying group

gInformation Com pany Cod e Data

Ac coun t ing Inform ation

Customer Master — Payment



yTransactions Com pany Cod e Data

Paym ent Transact ions

Payment data: Payment termsTolerance group

AutomaticPaymentTransactions: Payment methods

Alternative payerLockbox

C t M t C d



Customer Master — Correspondence Com pany Cod e Data

Correspondence

Dunning data : Dunning procedureDunning recipient

Correspondence : Account numberat customerCustomer user

Paymentnotices to : Customer

SalesAccountingLegal

Customer Master Insurance



Customer Master — Insurance Com pany Cod e Data

Insurance

Export creditinsurance : Policy number

Institution numberAmount insuredValid untilLead monthsDeductible

Customer Master Sales



Sales Data — Sales area

Sales order : Sales districtSales officeSales groupOrder probability

Item proposalAccount at customer

Pricing /Statistics: Price group

Customer pricing procedure

Price list typeCustomer statistical group

Customer Master — Sales

Customer Master Shipping



S & D Data — Sh ipp ing

Shipping : Delivery priorityShipping conditionsDelivering plant

Order combinationBatch split allowed

Partial Delivery: Complete deliveryPartial delivery of itemMaximum part deliveries

Customer Master — Shipping

Customer Master — Billing



S&D Data — B i l ling

Billing section : Manual invoice maint.RebatePricingBilling scheduleInvoice list schedule

Delivery andpayment terms : Incoterms

Payment terms

Accounting : Account assignment group

Taxes: Tax requirements for the customer

Customer Master — Billing

C stomer Master Partner F nctions



S& D Data — Par tner func t ions

The different partners are assigned

• SP Sold-to-party• BP Bill-to-party• PY Payer• SH Ship-to-party• … additional Partner function(s)

Customer Master — Partner Functions



Assigning Additional Partners

— Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018Bill-to : 10018

Payer : 10018Ship-to : 10018

— Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018Bill-to : 10018Payer : 10018Ship-to : 10018Ship-to : 10249 - Bakersfield, CA

Sold-to

Payer Ship-toBill-to

Sold-to

Payer Ship-toBill-to Ship-to




- Business Partners -

Business Partners



Business Partners• Defines all of the parties involved in a business

transaction and differentiates between their roles — customer, carrier, employees, customer contact, etc.

• Through customizing the system automatically

assigns partners to the customer master and totransactions

Sold-to Ship-to Bill-to Payer

Business Partners



Business Partners• The system creates these four business

partners by default. All four are required.

• All four may be the same or may be different.

• Since these are automatically assignedpartners you may need to add additionalpartners to carry out your businesstransactions.

Sold-to Ship-to Bill-to Payer



Business partners — Sold-to• Customer that orders thegoods• Can perform all primary

partner functions — sold-to,ship-to, payer, bill-to

• Primary type of businesspartner• Cannot be linked to other

sold-to partners

Sold-to

Ship-to

Bill-to

Payer



Business partners — Ship-to

• Party that receives thegoods

• Can be created as anindependent partner and

linked to one or moresold-to partners

Sold-to

Ship-to

Bill-to

Payer

ll



Business partners — Bill-to

• Party that receives theinvoice

• Can be created as anindependent partner and

linked to one or moresold-to partners

Sold-to

Ship-to

Bill-to

Payer



Business partners — Payer

• Party that sends thepayment

• Can be created as anindependent partner andlinked to one or moresold-to partners

Sold-to

Ship-to

Bill-to

Payer

B i P E l



Business Partners — Example

Sold-to

Bill-to

Payer

Ship-to

Ship-to

Ship-to

Ship-to

Ship-to

Ship-to

Sold-to




- Pricing -



Pricing

• ―World- class‖ functionality • Highly customizable & extendible

• One of the most complex features of SAP• Used to determine the net price for a material or an order

Pricing Process



Pricing Process

• Standard pricing calculates the gross price, thenapplies discounts, surcharges and applicable taxes toarrive at the final pricefinal price = gross price - discounts + surcharges + taxes

• Cost-plus pricing determines the base cost andapplies the appropriate discounts, surcharges andtaxesfinal price = cost - discounts + surcharges + taxes



Pricing Components

• Pricing is based on a matrix of predefined and custom elements

– Prices – Discounts & Surcharges – Freight – Taxes



Pricing Procedure

• In short, the mechanism used to arrive at the finalprice

• Considers all of the applicable pricing conditions, e.g.

material price, customer discount• Is assigned by: sales area, sold-to party and sales

document type (e.g. sales order)



Pricing Procedure

• The pricing procedure uses what SAP calls―the condition technique‖.

• The pricing condition technique starts withthe: – Pricing Procedure which looks at – Conditions which use

– Access Sequences which accesses – Condition tables which point to – A price, discount or other condition ($)

R/3 Pricing ProcessSALES DOC DETERMINE PRICING PRICE THE

DETERMINE ACCESSACCESS THE CONDITION



SALES DOC.ITEM

DETERMINE PRICINGPROCEDURE

FOR ITEM

PRICE THEITEM

SEQUENCE FOR EVERYCONDITION TYPE IN

PRICING PROCEDURE

ACCESS THE CONDITIONRECORDS AND

DETERMINE PRICE

UNIFORM SALES AREA &

DOCUMENT TYPE &SOLD-TO

CONDITION TYPE ANDACCESS SEQUENCE

ARE LINKED INTABLE

PR00

KI00

TX00

FR00

CONDITION TYPE

ACCESS SEQUENCE

TX00

FR00

KI00

PR00

- - -$9.25N/A

STOPS LOOKING AFTER FINDING FIRST VALUE

ETC .

PRICE ELEMENTCONTROL PARAMETERSUPPER/LOWER LIMITS

PRICING PROCEDURE

USSTD PR00

TX00

KI00

FR00

USALT

DISCOUNT

CONDITION TYPE CONDITION

PRICE

FREIGHT

TAXES

DISCOUNT

PRICE

KI01

PR00

KEY

CUSTOMER/MAT’L OR PRICE LIST/MAT’L OR

MATERIAL

LOOK FOR CONDITIONRECORDS IN THIS ORDER

OF CONDITION TABLES

ACCESS SEQUENCE

01

02

03

PR00 CUSTOMER /MATERIAL

PRICE LIST TYPE/MAT’L

MATERIAL

ORDER

ETC .

KI00 01

02

03

CUSTOMER /MATERIAL

PRICE LIST TYPE/MAT’L

MATERIAL

SALES

AREA

DOC .

TYPE

SOLD

TO

PRICING

PROCEDURE US01

US01

UK01

UK02

USSTD

USALT

UKSTD

UKSTD

A

B

1

1

1

1

A

A

Price Agreements



g

• Simple priceagreements – product – customer – customer & material – customer group &

material

• Detailed priceagreements – pricing scales – rebates – customer expected

price



Specialized Master Data

• Customer Material Info. Record• Item Proposal• Listing & Exclusion• Product Substitution

C t /M t i l I f R d



Customer/Material Info. Record

• Defines a customer alias for a material & description,for example:

Can further define attributes of the material, shippingand partial delivery information specific to the product

and customer

• Referenced in the sales order using the OrderingParty overview



Item Proposal

• Used to define frequently ordered combinations orspecial assortments of products and quantities

• Either products or products with quantities can beselected during order entry

• An item proposal can be defined for a customer via thecustomer master record



Material Listing & Exclusion

• Used to control what products are available for acustomer or group

• Material Listing — defines products that can be sold to acustomer

• Material Exclusion — defines products that cannot besold to a customer

Product SubstitutionMaterial Determination



Material Determination

• Enables automatic or manual substitution of materialsduring sales order processing

• Examples: – substitute a standard product with a promotional material – substitute based on a customer preference – substitute based on selection list (manual)

Customizing For Transactions Shipping Functions



• Shipping Point Determination – The shipping point is determined for each line item

based on the shipping point determination

– Shipping point = shipping condition +loading group +delivering plant

Customizing For TransactionsShi i F ti



Shipping Functions

• Route Definition – Route to be traveled and the transit time – Generic routes can be used to simply define

transit time• Route Determination

Proposed route = shipping point +destination country +

transportation zone +shipping condition




- Transactions -



Business Document Types

Inquiry

Credit Memo

Returns

Quotation

Sales Order

Cash Sale

Rush Order

Consignment

Contract

SchedulingAgreement

Debit Memo

ReturnablePackaging

Order Processing Functionality



• Delivery scheduling• Availability check• Transfer of requirements to MRP• Pricing• Credit check• Shipping point & route determination• Foreign trade & license processing

• Document flow

Delivery Scheduling



Delivery Scheduling

• Automatic scheduling of essential shipping activities ...Calculated using defined activity times ...Resulting in scheduled activity dates

• Determined using backward and forward schedulingrules

l h d l



Delivery Scheduling• Structure of sales documents

Header

Line item # 1

Line Item # 2

Schedule line # 1

Schedule line # 1

Schedule line # 2

D li S h d li T i l



Delivery Scheduling — Terminology

• Transportation lead time — time required to scheduletransportation

• Pick/Pack time — time required for picking and packing

• Load time — time required to load• Transit time — time required to transport goods from

shipping point to ship-to

B k d S h d li



Backward Scheduling

RequestedDelv. Date

GoodsIssue

LoadingMaterial

Availability

Order

Date

Transp.

Sched.

TransitTime

(2 days)

LoadingTime(1 day)

Pick & PackTime

(2 days)

Transp.Sched.Time(1 day)

26th 27th 28th 29th 31st25th

25

F d S h d li



Forward Scheduling

RequestedDelv. Date

GoodsIssueLoading

Material

Availability

Order

Date

Transp.

Sched.

TransitTime

(2 days)

LoadingTime

(1 day)

Transp.Sched.

Time(1 day) NewDelv. Dat

27th 27th 28th 29th 31st26th

27

1

Pick & PackTime

(2 days)

Availability Check



Availability Check

• Determines the material availability date• Considers inward and outward movement of inventory —

customizable• Influences partial deliveries by

– proposing a quantity that can be delivered on the requested date (complete

delivery) – determines the earliest date for full delivery – determines the number and dates for partial deliveries to fulfill the order

Availability Check



Availability Check

• In determining the material availability datethe system can include specific stocks ifselected, such as: – Safety stock – Stock in transfer – Quality inspection stock – Blocked stock – Restricted use stock

Transfer of Requirements to MRP



Transfer of Requirements to MRP

• Ordered quantities are passed to MRP (MM)• Controlled by the schedule line category• Blocking of documents can affect requirements passing

— delivery block

Credit Check



Credit Check

• Efficient means to implement credit management

• Integrated with FI — via credit control area

• Automatically alerts when a credit check fails

• Comprehensive credit management reporting

Shipping Point & Route Determination



pp g

• A shipping point is determined for each lineitem — shipping point determination• A delivery can only be processed from one

shipping point• Routes - route to be traveled & transit time

are determined using customized rules• Routes can be used to simply define transit

time

F i T d & Li P i



Foreign Trade & License Processing

• Predefined trade areas — NAFTA, EU• Automated reporting for trade areas• Automated controls

– license management – embargo lists – control by customer, country, product, point in

time



Shipping

Shi i g O i



Shipping Overview

• Comprehensive functionality to support picking, packingand loading functions

• Work list and deadline monitoring• Functions with backorder processing• Tightly coupled to the MM and FI modules• Facility for transportation management

Shi i g O i



Shipping Overview

Order

Order

Order

Delivery

OrderCombination

Order

Delivery

PartialDelivery

Delivery

Order

CompleteDelivery

Delivery

Delivery

Shipping Overview



pp g

• Delivery creation activities

– checks order and materials to determine if a delivery is possible — delivery block, incompleteness

– confirms availability – confirms export/foreign trade requirements – determines total weight & volume

Shipping Overview



pp g

• Delivery creation activities

– generates packing proposal – considers partial deliveries – updates route assignment – assigns picking location – determines batches – updates sales order — status, delivery qty

Deliveries & Delivery Notes



y

• The Delivery Note – Initiates the delivery process – Control mechanism for the process – Changes to delivery are allowable - products, quantities

Delivery Note

Picking

Packing

Loading

Post GoodsIssue

Status

Delivery Due List



• Produces a work-list of deliveries• Encompasses deliveries and transfers• Can be scheduled to run in batch

• Automatically combines deliveries

Picking



g

• Quantities based on delivery• Assigned date when picking should begin• Automated storage location assignment

• Supports serial number tracking and batch management• Integrated with Warehouse Management (WM)

Packing



Packing

• Identifies which packaging is to be used for specifiedproducts

• Identifies and updates accounts associated with

returnable packaging• Tracks the packed product by container• Insures weight/volume restrictions are enforced

Goods Issue



Goods Issue

• Event that indicates the change in ownership of theproducts

• Reduces inventory• Automatically updates the G/L accounts• Ends the shipping process and prevents changes to

the shipping documents

Goods Issue



Generalledger

Inventory

750

Cost of goods sold

750

Goods Issue

Billing Overview



Billing Overview

• Automated invoicing based on sales orders and/ordeliveries

• Functionality for processing credit/debit memos and

rebates• Integration with FI & CO-PA• Updates customer’s credit data• Can create pro forma invoices

Automatic Account Assignment



Automatic Account Assignment• Defines the G/L accounts that billing entries are

posted to — revenue, deduction, freight charges

Cust Acct.Grp.

01

Application

V

SalesOrg.

SOxxKOFI

Chart of Accounts

CHRT

From Table

FromSalesDoc.

AccountKey

ERL

FromPricingProc

Condition Type

610000

From Table

G/L Account

FromCustomerMaster

FromSalesDoc.

FromSalesDoc.

Billing Methods



Separate invoice per delivery

DeliveryOrderDelivery

Invoice

Invoice

DeliveryOrderDelivery Invoice

DeliveryOrder

CollectiveInvoice

Order DeliveryInvoice

Invoice

InvoiceSplit

Billing Documents



g

• Explicitly specify documents

• Billing due list — builds a worklist of invoices that shouldbe generated

• Automatic posting to FI



Billing Plans



• Periodic — total amount for a planned billing period

• Milestone — distributing the total amount over multiple

billing dates - typically used with the project system (PS)

• Installment — evenly proportioned amounts and definedpayment dates

• Resource related — consumed resources such asservice or consulting

SD Milestone Billing



Billing Description %Value Billing Milestone

Billingdate

blockstatus

11/20/96 Contract 10 30,000 - x

x01/20/97 Assembly 40 120,000 - x x04/20/97 Operational 40 120,000 x x05/20/97 Acceptance 10 30,000 x x06/20/97 Final invoice --

- - x

Sold-to : QAZ Industries Delivery Date : 06/20/97Material : 546-dk1 Generator Price : $300,000

Sales

Order

BillingPlan



Outline Agreements

• Contracts• Schedule Agreements

Contracts



Contracts

• Defined quantities and validity period for acustomer

• The contract is fulfilled by orders placed

against the contract - release orders• Contracts are automatically updated

through release order processing

• Pricing can be assigned to a contract

Contracts



Contracts

ContractTarget Qty: 900Order Qty: 700

ContractTarget Qty: 900Order Qty: 750

...

Release Order

Order Qty: 200

Release OrderOrder Qty: 150

Scheduling Agreements




• Defines specific product quantities and delivery dates fora customer

• Schedule lines and processed through standard delivery

processing• Availability check is performed during creation and

quantities are passed to MRP• System automatically updates delivered quantities




Delivery5/10 100

Delivery6/10 100Delivery7/10 200

Delivery8/10 300


SchedulingAgreement

Date Qty05/15 10006/15 100

07/15 20008/15 300



Backorders

Backorder ProcessingRescheduling

Backorders



Backorders

• Backorder processing – determines which orders have unconfirmed

quantities by customer or material

– sort the orders according to priority – assign available stock to outstanding orders

or reassign confirmed quantities to high-profile orders

Backorders



Backorders

• Rescheduling – updates the orders with the results of the availability

check

– can be used to manage the distribution of availableinventory when demand is greater than supply

Customer Returns



ReturnOrder

Goods ReceiptQuality Inspection

Credit Memo

Customer Returns



Customer Returns

Order Delivery Invoice

ReturnsDeliveryReturn

CreditMemo

1

2

3

Return toInventory

Customer Returns



• Returns document – Billing block can be proposed – Use the Order reason field to identify the reason for the return – Full access to pricing and ability to re-price

• Return delivery – Issues a goods receipt to place material into inventory

Customer Returns



Customer Returns

• Credit memo – Billing block must be cleared from Return – Posts to FI

– Can be processed in batch (background) – Can be processed collectively (grouped)



Output & Text

Communication — Output



SAPDocument

FAX

PrintedDocuments

Email

EDI

Bar CodedDocuments

Workflow

Communication — Output



Communication Output

• Output — traditional forms or electronic communicationsproduced for internal or external partners

• Assigned to business partners & sales documents

• Definable media — EDI, fax, print

• Highly customizable — Sapscript

Communication — Text



Co u cat o e t

• Texts are used for internal and externalcommunication

• Created for business partners, materials,

header or item level of sales documents — order, delivery, billing, picking lists

SIS Overview



• Flexible information system designed tosupport business planning, forecastingand reporting

• Pre-defined catalog of performancemeasures and reports

• On-demand access to reports andexceptions

• Data maintained in a separate database

Logistics Information System



g y

• Inventory Management• Purchasing• Sales and Distribution• Production• Plant Maintenance• Quality Management

Inventory Information System Standard Analysis



• Material• Plant• Storage Location• MRP Controller• Material Groupings

Purchasing Information System Standard Analysis



• Material• Vendor• Material Group• Purchasing Group• Purchasing Documents

Sales Information System Standard Analysis



• 5 Pre-defined drill-down reports – Customer – Material – Sales Organization – Shipping Point – SD Documents

Production Information System Standard Analysis



• Product Group• Material• Work Center• Production Resources and Tools

Reporting Tools



• Value display - absolute or percentage• Top N - top 10, top 100, etc.• Sorted - ascending or descending• ABC• Classification• Graphics - 2D, 3D



QUESTIONS ????

Email : [email protected]

Contact : 1-866-965-4447 .