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THE PROJECT ENTITELED

“SAP SD PROCESS IN TATA MOTORS”

Dissertation submitted in partial fulfilment of the requirements for the Award of the Degree of

MASTER OF BUSINESS ADMISTRATION

OF

BANGALORE UNIVERSITY

SUBMITTED BY

SOURAV GHORAI REG. NO: 15M9CMD108

UNDER THE GUIDENCE OF

PROF. PRIYANKA MNK (ASSISTANT PROFESSOR)

KOSHYS INSTITUTE OF MANAGEMENT STUDIES

BANGALORE UNIVERSITY (2016-2017)

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DECLARATION BY THE STUDENT I hereby declare that “SAP Sales and Distribution delivery process in TATA

Motors Ltd.” is the result of the project work carried out by me under the

guidance of Prof. PRIYANKA MNK in partial fulfilment for the award of

Master’s Degree in Business Administration by Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not

been submitted to any other university or Institute for the award of any other

degree or Diploma or Certificate.

Place: BANGALORE Name: SOURAVGHORAI

Date: Register Number: 15M9CMD108

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CERTIFICATE BY CO-GUIDE

This is to certify that PROF. PRIYANKA MNK of KOSHYS INSTITUTE OF

MANAGEMENT STUDIES, has undertaken dissertation in our organization on

the topic “SAP Sales and Distribution Delivery Process in TATA Motors Ltd.”

Between 26th December 2016 and 26th January 2017 .His Conduct and work is

Satisfactory

Seal

Signature

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CERTIFICATE OF ORIGINALITY

Date: 24/1/2017

This is to certify that the dissertation titled that “SAP Sales and Distribution

delivery process in TATA Motors Ltd.” is an original work of Mr. SOURAV

GHORAI; bearing University Register Number 15M9CMD108 and is being

submitted in partial fulfilment for the award of the Master’s Degree in Business

Administration of Bangalore University. The report has not been submitted earlier

either to this University /Institution for the fulfilment of the requirement of a

course of study .Mr. SOURAV GHORAI is guided by Prof. PRIYANKA MNK

who is the Faculty Guide as per the regulations of Bangalore University.

Signature of Faculty Guide Signature of Director / Principal /HOD

Date Date

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PROJECT TITLE

SD DELIVERY PROCESS IN TATA MOTORS

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INDEX TOPICS PAGES PROJECT DESCRIPTION 7

ABOUT SAP 8 SAP MODULES 9

ABOUT TOPICS 10 ABOUT TATA MOTORS 11 ROUTE DETERMINATION 12

CREATE OUTBOUND DELIVERIES 15 PICKING 24

PACKING 25 WAREHOUSE MANAGEMENT 26 GOOD ISSUE & CANCELLING 29

CONCLUSION 37

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PROJECT DESCRIPTION:

Here we are explaining Tata Motors delivery process with the help of SAP SD (Sales and

distribution).For delivery process of Tata motors the important factors are route determination,

outbound delivery, stock determination, good issue, warehouse management, picking, packing and

another important thing is Logistics Execution. The logistics process in a company that covers the

entire process chain from the vendor through the company warehouse, production facilities, and

distribution centres to the customer. Logistics Execution includes the goods receipt process, the

goods issue process, internal warehouse process, the transportation process. Organization structure

of logistics depends on Plant, Storage location, Warehouse number, shipping point. With the

availability of material or transport scheduling date, outbound delivery is required for due shipping

lines. It involves shipping activities like picking of goods, transportation scheduling, etc. An

outbound delivery is done with the shipping points and is determined at the time of placing the

order. You can also define a shipping point manually at a later stage. some checklist points to be

carried out when a delivery is created –To check the material and order to ensure if the outbound

delivery of goods is possible, Defining the quantity of goods and its availability, Packing the

outbound delivery, Calculating weight or volume of delivery, Find out the delivery situation and

the delivery agreement, Defining the route, Finding the pickup location, Quality check of material

to be delivered, Updating and changing the status of the sales order. There are various functions

in delivery processing like –Quantity Management and adjustment, Text Management ,

Printing, Validation.

Integration of SAP SD in the Enterprise Structure of TATA Motors

SAP SD helps to manage the complete vehicle order-to-delivery process, Manufacture and deliver

components. SAP SD Handle warranty claims with efficiency and accuracy and Enhance

dealership management. It helps to manage relationship with customers and Partners. Because of

SAP there is an integration with the vendors and the suppliers. In SAP SD There will be better

control on receivables and credit control. Here a single unified database maintain. Procurement

process from various vendors will be automated. There is catalogue content management which

helps in coordinating with suppliers. It’s help to streamline procurement process management

among different locations worldwide. SAP SD helps Parts validation through spend control and

analysis and Keeping records of daily billing, receivables and sales. Transparency in the process

for suppliers and payments status to suppliers through portal is achieved. Among other significant

benefits achieved by Tata motors is that there are quick and live options for competitive pricing.

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ABOUT SAP

SAP the company was founded in Germany in 1972 by five ex-IBM engineers. In case you're ever

asked, SAP stands for Systems, Applications, and Products in Data Processing. SAP is an

integrated business software to process all functionalities of an organisation in order to obtain a

unified solution. The SAP R/3 enterprise application for open client/server systems has established

a new standards for providing business information management solutions. The original SAP idea

was to provide customers with the ability to interact with a common corporate database for a

comprehensive range of applications. Gradually, the applications have been assembled and today

many corporations, including IBM and Microsoft, are using SAP products to run their own

businesses. SAP product are consider excellent but not perfect. The main problems with software

product is that it can never be perfect.

SAP Module There are 2 Types of SAP ERP Modules. First is Functional Modules and second one is Technica l

Modules. All SAP Modules integrated with each other with functionality and provide us best

solution for Business. Most important SAP Modules are financial accounting (FI), controlling

(CO), materials management (MM), and production planning (PP), Sales and distribution

(SD), Human resource (HR)

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ABOUT SAP SD

The SAP SD module is one of the primary ERP module developed by SAP. SAP service

and distribution deals in better management of sales and customer distribution data and

processes in organizations. It works closely with other SAP modules towards effective

process work. Other modules that SAP SD integrates are financial accounting (FI),

controlling (CO), materials management (MM), and production planning (PP) and so on.

All these collaborate together and enhance the work process in enterprises.

SAP Sales and Distribution is one of the key components of SAP ERP system and is used to

manage shipping, billing, selling and transportation of products and services in an organizat ion.

SAP Sales and Distribution module is a part of SAP Logistics module that Manages customer

relationship starting from raising a quotation to sales order and billing of the Product or service.

This module is closely integrated with other modules like SAP Material Management and PP.

The main areas covered by this module and the sub modules are:

Pre-sales activities, including Inquiry and Quotation creation, Sales Order processing, includ ing

Sales Order (SO) creation, shipping, including Outbound Delivery document creation, Billing,

including billing document and invoice creation. The key components in SAP Sales and

Distribution module are Customer and Vendor Master Data, Sales Support, Shipping of Material,

Sales Activities, Billing related, Transportation of products, Credit Management, Contract

Handling and Management, Foreign Trade, Information System.

SAP sales and distribution cycle

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ABOUT TOPICS:

Here we are explaining Tata Motors delivery process with the help of SAP SD (Sales and

distribution). In the delivery process of Tata motors the important factors are route determination,

outbound delivery,stock determination, and goods issue, warehouse management, picking and

packing. Another important thing is Logistics Execution. The logistics process in a company that

covers the entire process chain from the vendor through the company warehouse, production

facilities, and distribution centre to the customer. Logistics Execution includes the goods receipt

process, the goods issue process, internal warehouse process, the transportation process.

Organization structure of logistics depends on Plant, Storage location, Warehouse number,

shipping point.

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ABOUT TATA MOTORS:

Tata Motors is part of the USD 100 billion Tata group founded by Jamsetji Tata in 1868.

Sustainability and the spirit of ‘giving back to society’ is a core philosophy and good corporate

citizenship is strongly embedded in our DNA. Tata Motors is India’s largest automobile company.

TATA MOTORS belief that bring to the customer a proven legacy of thought leadership with

respect to customer-centricity and technology. Tata motors are driving the transformation of the

Indian commercial vehicle landscape by offering customers leading edge auto technologies,

packaged for power performances and lowest life-cycle costs. TATA MOTORS new passenger

cars are designed for superior comfort, connectivity and performance. What keeps them at the

forefront of the market is our focus on future-readiness and our pipeline of tech-enabled products.

TATA MOTORS design and R&D centres located in India, the UK, Italy and Korea strive to

innovate new products that achieve performances that will fire the imagination of Gen Next

customers. Across the globally dispersed organisation that TATA MOTORS are today, TATA

MOTORS mission “to be passionate in anticipating and providing the best vehicles and

experiences that excite our customers globally”.

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DELIVERY PROCESS OF TATA MOTORS:

Shipping is defined as a very important activity in the sales process. It comes under the logist ics

chain and guarantees customer service and distribution of goods. It is a significant component of

Sales and Distribution module. It is used to perform outbound delivery and other shipping activit ies

like picking and packing of the goods. In the shipping process, there are a few key sub processes,

which include-Delivery processing of the goods, Picking of items, packing of the goods, Post

goods issue, Shipping communication, Planning & monitoring of shipping.

ORGANIZATIONAL UNITS IN SHIPPING

In shipping the stock of goods is managed at Storage Locations. The shipping point key

characteristics include- It is under client location, An Outbound Delivery is processed from a single

Shipping point, Shipping point is determined at Item level in the order. Shipping point can process

outbound deliveries of several plants. You can also assign several shipping points to one plant, but

each point should have a different loading equipment or a different processing time. Other

Organization units are warehouse, type of storage, etc. There is a warehouse that is assigned to a

plant and storage location. There can be multiple storage locations in a plant and they can point to

one warehouse.

Each outbound delivery starts at a shipping point, continues along a route, and has ship to party as

the destination. These elements are header fields in the outbound delivery. The SAP system

supports the following function within shipping processing includes-Monitoring of deadlines for

reference document due for shipping, Creation and processing of outbound deliveries, Monitoring

of goods availability, Monitoring of capacity situation in the warehouse Support for picking (With

link to the warehouse management system), Printing and distribution of shipping documents ,

Processing of goods issue, Controlling through overviews of -Outbound deliveries currently in

process, Activities still to be performed, Possible bottlenecks

ROUTE DETERMINATION:

Route determination is done based on the target country and transportation zone along with the

shipping point. If you have the same shipping points for two deliveries to the same country and

same transportation zone, then the same route determination is applied to both. While creating a

delivery document, its route is determined based on the shipping party and ship to party

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information. While creating a delivery document, its route is determined based on the shipping

party and ship to party information

DEFINE ROUTE AND STAGES:

Go to: SPRO > IMG > Logistics Execution > Transportation > Basic Transportation Function >

Routes >Define Routes > Define Routes and stages

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After a new window will open and it will show the list of existing routes, Click New Entries.

After that enter the details in new window along with route stages and define. Once these details are entered click save. MAINTAIN STAGES FOR ALL ROUTES

Go to: SPRO > IMG > Logistics Execution > Transportation > Basic Transportation Function

> Routes >Define Routes > Maintain Stages for all routes after that fill Route, Stage Category,

Departure Point Destination Point, etc. & click save.

DEFINE DELIVERY DOCUMENTS

Transaction code: OVLK

PATH:-IMG-Logistics execution-Shipping-Deliveries-Define delivery types-Choose delivery

document LF from position button-Click on details icon

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OUTBOUND DELIVERY

With the availability of material or transport scheduling date, outbound delivery is required for

due shipping lines. It involves shipping activities like picking of goods, transportation scheduling,

etc. An outbound delivery is done with the shipping points and is determined at the time of placing

the order. You can also define a shipping point manually at a later stage.

CREATE OUTBOUND DELIVERIES:

If you know the order number, you can create one outbound delivery for a single order. You can

change the shipping data at any point, if required.

Use T-Code: VL10B

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Enter the Shipping Point from shipping data. In the Purchase Order tab, enter PO number due for

delivery and quantity.

To create an outbound delivery with Order Ref or W/O Order Reference

Use T-Code: VL01N

TO CHANGE THE OUTBOUND DELIVERY

Use T-Code: VL02N

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DEFINE ITEM CATEGORY FOR DELIVERIES:

Transaction code: OVLP

PATH: IMG- Logistics execution- Shipping- Deliveries- Define item categories for deliveries-

Choose item category DLN from position button- Click on details icon

Document category [J] = Delivery

A classification for the different types of documents that you can process in the sales and

distribution system. Like Quotations, Sales orders, Deliveries and Invoices

Material number 0 allowed: It controls whether it makes sense to enter an item in the SD

document with this item category without specifying a material. It allows to create a delivery

document for a line item with 0 quantity.

Use: It would make sense to set this indicator for text items.

Item category statistics group [1] = Order, debit memo

It specifies a statistics group for this item category and helps determine which data the system

updates in the Logistics Information System.

Stock determination rule: Stock determination rule and stock determination group are combined

into one key for stock determination strategy. It will be used in the repetitive manufactur ing

process

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Check quantity 0 [A] = Note about the situation

It specifies when we create an item that has a 0 quantity. In this situation how system should give

message. It is useful for the items that are creating without order.

Check minimum quantity [A]: Note about the situation

It specifies whether system has to check minimum delivery quantity, and system reactions when

the minimum delivery quantity has been to yet reach. This field works according to the customer

material info record, and material master record. System gives warning or error message.

Check over delivery: It specifies how the system reacts whether warning or error message during

delivery processing when original order quantity exceeds delivering order quantity. It works

according to customer material info record.

Availability check off: It is the control to switch on/off availability check for delivery items.

Rounding: This indicator specifies rounding rules for whole number unit of measure. It is useful

for BOM items.

Relevant for picking or put away: It indicates whether item of this type are relevant for picking

or put away. In the outbound delivery process, only delivery items that are relevant for picking are

transferred to the warehouse. Management. Service items and text items are not transferred to the

warehouse. In the case of inbound deliveries this indicator controls whether the item is relevant

for put away in the warehouse.

Storage location required: This indicator makes storage location as mandatory in the delivery

document.

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Determine storage location: It indicates whether system has to determine storage location

automatically.

Do not check storage location: It indicates whether system should run a check for the storage

location that was determined.

No batch check: It specifies system checks the batch number that entered in the delivery

document.

Packing control: It indicates whether delivery items with this item category:

May be, Cannot be or must be packed

Pack accumulated batch items: It specifies if for a batch material only the main item with

accumulated batch quantity is to be packed in the delivery, or if only items in which the batch is

recognized can be packed.

Automatic batch determination: This indicator enables to determine batch automatically in the

delivery documents.

Text determination procedure [02]: It identifies a group of text types that you can use in, for

example, standard terms of delivery. The text procedure also determines the sequence in which the

text types appear in the document.

Standard text: Number of the standard text. This is not used at present.

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SHIPPING POINT DETERMINATION:

Transaction code: OVL2

Path: IMG-Logistics-Execution-Shipping-Basic shipping functions-Shipping points and goods

receiving point determination-Assign shipping points-Go to new entries-Specify Shipping

Conditions + Loading Group + Delivering Plant = Proposed Shipping Point-Save and Exit

Route determination: Route can be re-determined in the deliveries. System re determines the

route by taking weight group in to the consideration along with other factors that are required to

determine route. Route determination procedure is same as we defined earlier.

Incompletion control for deliveries: We can determine incompletion procedure for Delivery

Document Header [G], Delivery Document Item [H]

Procedure is same to define incompletion control for deliveries as we defined earlier.

Availability check and TOR: procedure is same to configure Availability check and TOR for

delivery documents as we defined earlier.

Output control: We can determine output for outbound deliveries, inbound deliveries, and

handling units and for groups. Procedure is same to configure output for delivery. Output types for

outbound deliveries:

CANO = Forwarding notification

LALE = Shipping notification to Sold – to – party

LAVA = Outgoing shipping notification

LD00 = Delivery note

MAIL = Mail

PL00 = Packing list

Partners: We can determine master data like delivery priorities, customer calendars, and goods

receiving hours.

Partner determination procedure:

LF = Delivery note

LO = Delivery without order

EL = Shipping notification

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Text control: We can determine text for delivery document header and item. Procedure is same

as we define earlier.

Pricing: We can define and assign pricing procedure for value contracts. We can define pricing

procedure for delivery and we can assign pricing procedure for deliveries.

Material determination: We can map the material determination as well as listing and exclusion

also for deliveries. Procedure is same as we defined earlier.

Proof of Delivery [POD]: We can map Proof of Delivery in deliveries section. We can release

POD automatically by using transaction code: VLPODQ. POD is essentially designed to support the process of only creating an invoice once the customer

has confirmed the arrival of the materials. After receiving the goods, the ship-to party transfers the

POD to the system by ID and thereby confirms the quantities for the whole delivery.

In most cases for which there are no discrepancies of quantity, this involves no extra effort, because

verification and confirmation are automated using the ID. If differences are reported, the proof of

delivery cannot automatically be confirmed. In such a case, you must continue processing

manually.

SHIPMENT OR DELIVERY SCHEDULING

Different Times involved in delivery scheduling-Pick/Pack Time, Loading Time, Transportation

Time and Transit Time

BACKWARD SCHEDULING: system confirms the quantity of delivery on the basis of

customer request delivery date.

FORWARD SCHEDULING: system confirms the quantity on the basis of New Material

availability date. Precise scheduling-the system calculates and displays the results of scheduling

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down to minute. If you have maintained the working times of the shipping point, the system

performs precise scheduling.

COPY CONTROL:

Transaction code: VTLA

We can maintain the copy control for sales document to delivery document.

Sales document to Delivery document – Header

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Order requirements [001] = Header

In order to form the basis of a delivery, a sales document must be a sales order and not for an

inquiry or a quotation.

Combination requirement [051] = Combination

The sales orders you want to combine must have the same sales organization, the same billing type

and the same partial delivery agreement.

Header data [001] = Header

According to the routine, the system checks that certain sales document header fields I the source

document meet the right conditions. If they do, the system copies them into the target document.

Copy item number: It indicates whether the system copies the item numbers from the source

document into the target document. If you expand a document by copying in only partial item

information from another document,the system does not copy the item numbers.

SALES DOCUMENT TO DELIVERY DOCUMENT – ITEM

Order requirements [101] = Item

In order to form the basis of a delivery, a sales document must be a sales order and not for an

inquiry or a quotation.

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Item data [699] = IDES item According to the routine you specify, the system checks that certain

sales document item fields in the source document meet the right conditions. If they do, the system

copies them into the target document.

Business data [2] = Business Data According to the routine you specify, the system checks that

certain business data fields in the source document meet the right conditions. If they do, the system

copies them into the target document.

Update document flow: It indicates whether the system creates a document flow record when you

copy one sales document into another.

Use: The flow record includes information about how much of the quantities and values in the

source document have been copied into the target document.

Positive/Negative quantity [+]: Indicates whether, during copying, the quantity or value in the

target document has a negative effect, positive effect, or no effect at all on the quantity still to be

completed in the source document.

PICKING

Picking of goods is done in SAP warehouse management system. It is done via a transfer order,

which is used for picking list and to withdraw the goods from the stock.

There are three types of Picking –

Picking of goods individually

Picking as per defined intervals

Automatic Picking in SAP SD module

Packing of goods is done with the packing material and to be created as material type –“VERP”

can be done in two ways – Manual & Automatic

The Post Good Issue (PGI) is the last step in delivery processing and in this goods ownership is

moved to the customer and stock is updated as per delivery.

These functions can be performed in the system using the following steps –

Creating an Outbound delivery

Creating Picking Request

Create Packaging

Creating Post Goods Issue

CREATING A PICKING REQUEST

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Use T-Code: LT03

After that Enter Warehouse- Enter Plant- Enter Delivery- Press Enter –save

CREATING A PACKING REQUEST

The packing function is available for the following documents-In orders (as packing proposals),

In the inbound delivery, In the outbound delivery, In the shipment document .The packing proposal

in the order can be copied to the outbound delivery. You control this at the header level in the copy

control table for deliveries. To make packing in the outbound delivery subject to certain conditions,

make settings in Customizing (with the Standard setting, packing cannot be carried out when the

delivery has been blocked by a credit check).

The system copies packing in the outbound delivery to the shipment. You can choose to pack all

the deliveries together. Use user exits to specify rules for automatic packing during the creation of

outbound deliveries. The resulting proposal contains the packaging materials and the contents of

each handling unit. Activate automatic packing for each delivery type separately.

We can use T-Code: VL02N, Enter Outbound Delivery and click Pack.

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Select Pack Material and Enter Packaging Material details.

Click save

WARE HOUSE MANAGEMENT

Warehouse is a complete physical warehouse is defined under a single warehouse number. By

using this warehouse number we can manage several individual warehouse buildings that together

form a complete warehouse complex. Warehouse number encompasses (include) the

organizational plan and physical aspect of warehouse complex in a single concept. Warehouse can

be used to kept finished products.

Warehouse can be:

Goods receipt area

Goods issue area

Hall with high rack shells

Bulk storage area

Picking area with fixed bins

Outside storage yard for special goods

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Warehouse structure:

Storage type: Storage type is nothing but a storage area, warehouse facility. Warehouse zone that

we defined for warehouse number. It is a physical or logical sub – division of a warehouse complex

that characterized by its warehouse technique, the space used, its organizational form or its

function. A storage type consists of one or several storage bins.

EX: Bulk storage, open storage, high rack storage, picking area, and shelf storage

We have to define important control indicators/parameters for storage type that determines

material flow (put away/picking activities).

EX: Put away, Picking, Blocking indicators, and Inventory procedure.

Storage section: It is an organizational subdivision of a storage type that group together storage

bins with similar Features for the purpose of putting away stock. We must create at least one

storage section for each storage type.

Picking area: Picking area is a section within a storage type in which all picking activities are

carried out in the same way. It groups storage bins together from the view point of picking

strategies and is a counter part to the Storage section which groups bins from the view point of put

away strategies.

Create Storage Bins: Transaction code: LS01N

Path: Logistics-Logistics execution-Master data-Warehouse-Storage bin-Create-LS01N –

Manually

Quant: It is a stock of any material with same features in one storage bin.

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Door: Where the goods arrive at or leave the warehouse. It is an organizational unit that is assign

to the warehouse Number. The doors are located in a close proximity to the respective staging

area.

Staging area: It is an organization unit that is assigned hierarchy to the warehouse number. It is

used to organize the goods flows in the warehouse. It is used as an interim storage of goods in the

warehouse. It is assigned to doors.

EX: Goods receipts and Goods issues.

NOTE: Warehouse management configured by MM consultants.

Lean warehouse management configured by SD consultants.

Lean warehouse management: In warehouse management system, goods movements and stock

changes takes place at storage bin level. But with lean warehouse management, inventory

management takes place at storage Location level. We used to process goods receipts and goods

issues. We have to create transfer orders for deliveries. Transfer Order serves as a picking list.

Pre – Requisites: We can only implement it with fixed storage bin. Assign a newly defined storage

location to warehouse number. Setup at least two storage types:

1. Picking storage type as the source storage type.

2. In shipping area as a destination storage type for deliveries.

CONFIGURATION SETTING:

Define warehouse number

Path:-IMG-Enterprise structure-Definition-Logistics execution-Define, copy, delete, check

warehouse number-Define warehouse number-Choose existing lean warehouse number-Click on

copy as icon and rename-Save and Exit

Define new storage location

Path: IMG-Enterprise structure-Definition-Material management-Maintain storage location-Enter

plat in work area and press enter-Go to new entries-Define storage location-Save and Exit

Assign warehouse number to plant/storage location

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Path: IMG-Enterprise structure-Assignment-Logistics execution-Assign warehouse number to

plant/storage location-Go to new entries-Specify the plant, storage location and warehouse

number-Save and Exit

Define master data

Path: IMG-Logistics execution-Warehouse management-Master data-Define control parameters

for warehouse number-Choose our warehouse number from position button-Select it-Click on

details icon-Maintain the details-Save and Exit

Define picking areas

Path: IMG-Logistics execution-Shipping-Picking-Lean WM-Define picking areas-Check our

warehouse number with picking areas existed or not-Save and Exit

Control Plant/Storage Location/Warehouse number assignment

Path: IMG-Logistics execution-Shipping-Picking-Lean WM-Control Plant/Storage

Location/Warehouse number assignment-Choose our Plant, Storage Location and Warehouse

number-Assign degree of activation as 1 [1 = Lean warehouse management in connection with

deliveries-Specify storage type 005 fixed bins that we define-Save and Exit

GOODS ISSUE:

In order for a goods issue to be posted, all mandatory shipping activities need to be performed. For

example, if you are working with a picking relevance and confirmation requirement, these steps

must first be completed. The goods issue can be posted by changing a single outbound delivery.

Alternatively, you can use the collective processing function to select all deliveries for which

goods issues are due to be posted, and then post the goods issues for them. You can also use the

outbound delivery monitor to do this. You can also post the goods issue automatically when the

transfer order is confirmed. When you process a single outbound delivery, you can specify the

actual goods issue date without changing the planned date. A dialog box appears in which you can

enter the actual goods issue date, and then post the goods issue for this date. The corresponding

goods issue document is posted with the actual goods issue date. If no explicit specifications are

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made for the goods issue date, the system takes the current date as the goods issue date. The goods

issue applies to the entire outbound delivery. Errors are logged when data such as the batch or

serial number is missing or when picking has not been carried out fully for the items. In these

cases, the system does not post the goods issue. After the goods issue has been posted, the scope

of changes that can be made to the outbound delivery becomes limited. In particular, no changes

can be made to the quantities. At this point in processing, the delivery document has to reflect the

actual physical delivery.

The following are the functions of a goods issue:

Reduces inventory stock

Posts the value change to the stock accounts in inventory accounting

Reduces delivery requirements

Enters status information in the outbound delivery and the sales order

Updates the status in the document flow

Creates a work list for billing

To carry out billing before the goods issue is posted (using the “Create billing document”

transaction), you can make the appropriate settings in copy control in Customizing.

POST A GOOD ISSUE PGI

T-Code: VL02N

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Click Post Good Issue and a message will appear – Replenishment Delivery has been saved.

PGI creates two documents – Material Document, Accounting Document

QUALITY INSPECTION

The Quality Management (QM) component supports Sales and Distribution with quality

inspections for goods issues (for example, packing inspections). If a quality inspection is to be

carried out for a material, you must specify this requirement in the Quality Management view of

the material master.

When the outbound delivery is created, QM automatically creates an inspection lot for the delivery

items that are relevant for inspection. The inspection lot tells the quality assurance department that

the goods need to be inspected.

You can store the result of the inspection in the system in the following ways:

Damaged goods are stored as defect records.

Measured values or evaluation codes are stored as characteristic values.

The type and procedure used by the inspection are stored in the QM master data.

The usage decision represents the completion of a QM inspection. This is where the inspected

goods are either accepted for further use or rejected. This is called “accepting” or “rejecting” an

inspection lot Depending on the customer, or on the customer and the material together, you can

specify whether the system must accept the inspection log before it posts a goods issue. If it must

not be accepted, the quality assurance department can submit the inspection results after the goods

issue posting. You print a certificate of quality from the output control of the outbound delivery at

item level. This function is primarily used for materials that are handled in batches.

CANCELLATION OF GOOD ISSUE

If you cancel a goods issue for an outbound delivery, the system does the following-Resets the

goods issue posting, Copies the quantities and values from the original goods issue document,

Carries out an inventory posting based on these quantities and values with a reversed +/- sign. If

you cancel a goods issue, this affects the entire outbound delivery. The cancellation document

created during cancellation is entered in the document flow for the outbound delivery. After a

goods issue has been cancelled, the goods movement status of the outbound delivery is reset to

"Not yet started". This allows you to further process the outbound delivery as usual. The delivery

requirements are also re-created. Cancelling a goods issue comprises two steps if the outbound

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delivery has been either fully or partially billed. In this case, you must first cancel the billing

document. Then, you can cancel the goods issue.

RETURNABLE PACKAGING

It is used in the process whereby the business sells items to the customer. These items are packed

into shipping units such as Boxes and Crates. Then the customer can keep the boxes or crates up

to a certain period of time and then must return the item. Should the customer not have return the

shipping units with in specified date or have been destroyed, and then business may bill the

customer for damage goods.

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Scenario 1: If the customer returns returnable packaging material, then business has to pick up

returnable packaging material from customer site. Then Go to VA01 and raise the sales order

[Document type AT] Specify the returnable packaging stock quantity-Save and Exit-Go to VL01N

and do the return delivery for returnable packaging quantity-Do the PGR and save the document

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Scenario 2: If the customer does not return the returnable packaging items, then business has to

bill the customer. Go to VA01 [Document type LN] and raise the order-Specify the reason as goods

damaged at customer place-Save and Exit-Go to VF01 and raise the Invoice with reference to LN

document

BATCH PROCESSING IN DELIVERY

You can specify a batch in the relevant-details screen for materials that are handled in batches

within the SAP system. The system indicates whether a material is handled in batches in the

material master record in the Storage 1 or Purchasing screens. When delivering a sales order, this

batch is copied to the outbound delivery. You cannot change it there. If a batch has not been

specified in the sales order, you can enter one in the picking overview screen of the outbound

delivery. You must specify a batch before goods are issued. You have to use the batch split function

if you want the system to take the delivery quantities of an item from different batches.

Carry out batch splits as follows:

Manually, in the batch split screen of the delivery item

Using automatic batch determination when creating the outbound delivery (you have to use

the batch split function if the delivery quantities of an item are to be taken from different

batches)

Using manually-triggered batch determination in the batch split screen

Using Warehouse Management (WM)

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SERIAL NUMBER IN DELIVERY:

Company can assign a unique serial number to each material. This assignment allows you to do

the following:

Monitor goods movement for individual materials (for example, when selling materials to a

customer)

Manage the maintenance of individual materials more easily in the system if equipment master

records exist for these materials

To use serial numbers, enter serial number profiles in the master records for the relevant materials.

Serial numbers are usually specified in the delivery item. However, you can also define them in

the order. You can also have the system assign the serial numbers automatically. You must specify

all serial numbers before posting goods issue.

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PRICING CONDITION IN DELIVERY:

The outbound delivery may contain shipping-related conditions, such as shipping or freight costs

(if you are not using the transportation module). You can enter the condition values manually or

determine them using the SD pricing condition technique. You can print the conditions on the

delivery note and transfer them in the billing document, but you cannot transfer them from the

preceding documents to the outbound delivery. To implement the conditions, use the standard

Customizing settings for pricing (condition type definition, maintaining the pricing procedure).

Assign the pricing procedure to the delivery type.

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IMPORTANT TRANSACTION CODE WE USE

VL02N Change outbound delivery

VL03N Display outbound delivery

VL06O outbound delivery Monitor

VL02 Change outbound delivery

VL03 Display outbound delivery

VLPOD POD - Change outbound delivery

VL01N Create outbound Delivery with Order Ref.

VL10B Purchase Orders Due for delivery

VL10 Edit User-specific delivery List

VL10G Documents due for delivery

LT0G Return delivery to stock

VL10A Sales Orders Due for delivery

VTLA Order to delivery copying control

VL04 Process delivery Due List

OVL2 Shipping Point Determination

LT10 Create Transfer Order from List

VL10C Order Items Due for delivery

VL10D Purchase Order Items due for delivery

OVL3 Picking Location Determination

0VLP Customizing/delivery item categories

VL01NO Create outbound Delivery w/o Order Ref.

VCH1 Create Batch Search Strategy

VL06 Delivery Monitor

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CONCLUSION:

SAP SD manage the complete vehicle order-to-delivery process, Manufacture and deliver

components. It Handle warranty claims with efficiency and accuracy and Enhance dealership

management. Manage relationship with customers and Partners. There will be better control on

receivables and credit control. A single unified database. Transparency in the process for suppliers

and payments status to suppliers through portal is achieved. Among other significant benefits

achieved by Tata motors is that there are quick and live options for competitive pricing. It is

helping Tata motors with negotiation power because all data of the world can be made availa ble

to Tata motors. Synchronize production scheduling with sales of product. It is helping Tata motors

with negotiation power because all data of the world can be made available to Tata motors for

Synchronize production scheduling with sales of product.

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Bibliography

Books

Ashok Faujdar, Sap Sales And Distribution Certification, Tata McGraw-Hill Education,

2008

Sales and Distribution in SAP ERP-Practical Guide, SAP PRESS, Matt Chudy, Luis

Castedo, Ricardo Lopez, Galileo Press New York, 2014

WEBSITES

SAP LEARNING HUB, VIEWED ON 20/1/2017,

https://training.sap.com/shop/app.php/access

SAP SD delivery process- tutorialspoint , viewed on 20/1/2017,

https://www.tutorialspoint.com /sap SD/sap_sd_delivery_processing.html

Tata motors, viewed on 20/1/2017, www.tatamotors.com

Function of delivery documents in SD process, viewed on 20/1/2017,http://www.sap-sd-

certification.com/

Transaction code, viewed on 20/1/2017,

http://www.tcodesearch.com/tcodes/search?q=outbound+delivery#ixzz4WhnWGSEQ

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