Chapter 1

Introduction

COMPANY PROFILE Headquarter -Pune. Alpha Bricks is a name synonymous with proven methodologies and uncompromised quality. At Alpha Bricks believes solution development is a discipline combination of Skills, Processes and Attitude and believes that aligning with their Customers and orienting themselves to their needs is the most important step in long term success. Alpha Bricks operates in the areas of web based technologies, mobile technologies and cloud computing. They also have set of Intellectual Property in processes and tools to make your solution building more effective, efficient and high quality. Alpha Bricks specialize in cloud application development and offer specialized solutions around Google and Amazon cloud platforms. They know technology and can deliver it in a cost effective, process driven, scalable manner. Ultimately, we are driven by the value we can add to our customers. We will evaluate the impact we can have on enhancing organizations ability to do something better, more efficient or enable a new process through extensive knowledge base, tools and experience .

It also provides an end-to-end SAP implementation, consulting, training and support. Headquartered in Pune, India, it has global presence in South East Asia, US and the Middle East. It has helped its clients:

Streamline and automate business processes. Provide visibility and operations transparency to the business. Reduce Cost of software and services. Minimize length of time to initial 'Go Live' and full implementation. Enable high ROI and develop life cycle management. Meet compliance requirements. Connect with customers and suppliers.

With support of industry veterans spanning an experience anywhere between 8 to 25 years on various domains, AlphaBricks has the confidence and enthusiasm to help client reach to the top.

AlphaBricks DelphiTech Pvt. Ltd. is Joint Venture between AlphaBricks Technologies and Delphi Computech. The company was formed to bring together 14 years of core SAP implementation, consulting and training experience. AlphaBricks DelphiTech provides an end-to-end SAP implementation and training through its proven methodologies and uncompromised quality. Delphi is a name synonymous with IT Education and Consulting in India, Middle East and SEA. It is a leading brand in SAP training across South East Asia and the US. AlphaBricks DelphiTech Pvt. Ltd. has over 10 years in SAP consulting, training and resourcing. Long-term client relations Entire SAP stacks under one umbrella with a state-of-the-art ABAP factory. Holistic services from one supplier International roll-outs with international teams creating a global community of SAP experts Member of premier trade associations and business groups. Already a trusted name Dedicated in-house Support Team for SAP Customers

SECTOR PROFILE-INFORMATION TECHNOLOGY Information technology (IT) is defined as the design, development, implementation and management of computer-based information systems, particularly software applications and computer hardware. Today, it has grown to cover most aspectsof computing and technology. The reason why it has considered in importance is due to the improving accessibility, awareness and utility of technology. IT professionals perform a variety of duties ranging from data management, networking, engineering computer hardware, database and software design, to the management and administration of entire systems. With the already high penetration of conventional personal computer and network technology, coupled with the growing convergence of information, communication and entertainment, the industry is now intensely focused on the integration with other technologies such as mobile phones, automobiles and televisions etc, thereby increasing the demand for such jobs. The largest firms globally include IBM, HP, Dell and Microsoft. Information Technology is having impact on all trade industries and businesses, in service as well as in manufacturing. It is affecting workers at all levels of organizations, from the executives to middle management and clerks. Information technology (IT) refers to the management and use of information using computerbased tools. It includes acquiring, processing, storing, and distributing information. Most commonly it is a term used to refer to business applications of computer technology, rather than scientific applications. Now a days computer plays a major role in any organization. Each and every work directly or indirectly relates to computer. And if at any stage work breaks down, it would also affect the rest of the work in the hierarchy. There are lot many things which are inter-related with IT and the management. The industry is likely to continue growing from strength to strength. New graduates with degrees in related fields such as electrical engineering and computer science can hope to achieve significant professional growth and a healthy remuneration from companies looking to hire the best talent available, given the high proportion that leave to pursue jobs in this sector overseas.

I.T. INDUSTRY IN INDIA Major players: Information Technology is one of the most important industries in the Indian economy. The IT industry of India has registered huge growth in recent years. India's IT industry grew from 150 million US Dollars in 1990-1991 to a whopping 50 billion UD Dollars in 2006-2007. In the last ten years the Information Technology industry in India has grown at an average annual rate of 30%. The liberalization of the Indian economy in the early nineties has played a major role in the growth of the IT industry of India. Deregulation policies adopted by the Government of India have led to substantial domestic investment and inflow of foreign capital to this industry. In 1970, high import duties had forced IBM to leave India. However, after the early nineties, many multinational IT companies, including IBM, have set up their operations in India. During the ten year period 1992-2002, the Indian software industry grew at double the rate as the US software industry. Some of the major reasons for the significant growth of the IT industry of India are Abundant availability of skilled manpower Reduced telecommunication and internet costs Reduced import duties on software and hardware products Cost advantages Encouraging government policies Tata Consultancy Services (TCS) Infosys Wipro IBM HP HCL Cognizant Technology Solutions (CTS) Patni Satyam NIIT

Some of the major companies in the IT industry of India are

India's IT industry caters to both domestic and export markets. Exports contribute around 75% of the total revenue of the IT industry in India. The IT industry can be broadly divided into four segments IT services Software (includes both engineering and Research and Development) ITES-BPO Hardware

INDIAN I.T. INDUSTRY A SWOT ANALYSIS Strengths High Quality & Price Performance Large Pool of Knowledge Workers Flexibility and Adaptability Reliability High Growth Engineering Base Global Research & Development Lack of Package Orientation Lack of Domestic Computerization Lack of Internet Penetration Project Management Skill

Weaknesses

Opportunities Global Market Domestic Demand Outsourcing E-Commerce/E-Business Overseas Listings

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 Threats

Internet Service Provider (ISP) Policy Government Interference Lack of Speed Infrastructure Cost Protectionism by Export Destinations

Scope of work & Objective

Project manager from the company, who will work or should work closely with the implementing Company Project Manager. The Implementing Company will supply the Technical/Functional Consultants. Client company should provide so-called "Super Users / Key Users. These are persons within the company who know the business and its processes inside out. The Key Users will work closely with the Technical Consultants in designing the companys Business Process to fit with SAP. The Technical consultants should pass on their knowledge to the Key Users. The Key User will train the End Users, so they must be also trained in SAP Business Process, this is either done by the Implementing company or client company can send them to SAP training. The driving person here is your Company Project Manager; in any case all company persons involved in the Implementation project should be on the project 100 percent. Consultants should setup five phases: 1. Preparation 2. Blueprinting 3. Realization 4. Preparation Go Live 5. Go Live/Support From the Project Management side, there are many things that must be set up prior to Blueprinting, such as Project Charter, Project Plan, Risk Management Plan, Change Management plan etc. As far as a SOW, this is part of your Charter and there are many Templates of such documents, you need more than just the template, you must know how to analysis overall environment (Company goals, landscape, Business objectives etc)

Operating Environment
The central instance host must meet the following requirements: Software

Windows server 2003 32 bit with Service pack 2 or Windows Sever 2003 64 bit operating system You should have mother board or Laptop driver CD Adobe Acrobat Reader for Installation Manuals

Hardware Processor --- Intel P4 3.0 dual core RAM --3 GB 250 GB

Hard Disk ---

Mother board -- Intel 915 , 945 and 101

Chapter 2
Proposed System

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SAP has an edge over other ERP packages for the following reasons:
Integration: All work processes within a company or group of companies are linked through data and functions using the R/3 System. Functionality: The R/3 System offers you a software solution that covers all commercial processes and transactions commonly occurring in a company or group of companies. User Friendliness: The R/3 System has a uniform graphical user interface for all application areas.

Individual Solutions: System-controlled customizing procedures allow you to create solutions from a wide variety of prepared application variants to satisfy individual requirements.

Flexible Structure: Whether in a departmental organization or on the warehouse or factory floor, change is the only facet of your business that will not vary. Adaptability must be universal, and the R/3 Systems flexible structure and extensive integration helps make that easier. Enterprise-Wide Integration: SAPs enterprise-wide R/3 System solutions meet the needs of constantly changing, continually evolving businesses. The R/3 Systems application components are fully integrated. Transaction-related process chains trigger the next activity as needed from engineering to materials management, to production planning, to sales and distribution. The R/3 Systems full integration pulls your enterprise together, promoting data access, flexibility, and productivity. No other product or suite of products provides the R/3 Systems functional links between processes that multiply the power of each persons work.

Real-Time Information: The R/3 Systems ability to drill down to whatever level of
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detail you need is legendary. More than any other product, the R/3 System provides upto-the-minute, real-time information wherever and whenever you need it. Mission-Critical Business Processes: SAP has more than 20 years of experience designing sophisticated application software for backbone and mission critical business processes. Nine of the top ten Fortune 500 companies use SAP software. SAP developed most of the R/3 Systems functionality in close cooperation with these customers. Consequently, it has integrated the best business practices of the worlds most successful companies into the R/3 System. The R/3 Systems business processes are flexible, pragmatic and well documented. Today they form a widely acknowledged standard for Business Process Reengineering (BPR). Enterprise-wide three-tiered architecture: The R/3 System remains the only enterprise-wide, three-tiered architecture. The R/3 Systems three-tiered client/server architecture separates the system into areas devoted to database, application functionality, and desktop presentation. This structure promotes maximum flexibility, freedom of application component choice and the ability to change and add to the system as your organization grows. The development of the Internet, including the World-Wide Web, promises to make dramatic changes in communications between businesses and customers. Concurrent engineering: Concurrent engineering cuts time-to-market by stacking up business processes whenever functions can take place concurrently rather than consecutively. The R/3 Systems flexibility and integration help you form the real-time workflow application links required for concurrent engineering. Lean Implementation: The R/3 System promotes lean implementation through its modular structure. By selecting key portions of the R/3 System for first-time implementation, and minimizing customization, new users bring the full power of the R/3 System to address their business issues with great speed, at a reasonable cost. Once running, the R/3 System makes it easy to add more functional pieces. Tools on various system levels allow you to fine tune all R/3 System functional modules. Gradually adding functionality makes core solutions available sooner without sacrificing long-term application.

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Chapter 3
Analysis and Design

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3.1 Standard order It is the order type in which delivery, picking, packing and PGI and billing is required to be created. In the standard system, sales document type BV is saved for delivery. In this type of order OR, as soon as you save the sales order the delivery is not automatically created. The delivery is processed after few days from the date of order creation and an invoice is also printed later: billing is therefore related to the delivery. Receivables are created for the customer, because the amount in the invoice is posted after printing bill and receiving amount to type LF. When the sales employee creates a standard order, the system automatically proposes the current date as the date for delivery and billing. Once the order has been posted, a delivery is created immediately in the background
Header data

cash

account.

In the standard system, sales document type OR is saved for cash sales with immediate delivery

Delivery:

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Invoice:vf01

3.2 Cash Sales A cash sale is an order type for when the customer orders, picks up and pays for the goods immediately. In this type of order CS, as soon as you save the sales order the delivery is automatically created as same date and billing will also be generated at the same date as soon as you save the delivery document. In cash sales, you can process an order for when the customer orders the goods, picks them up, and pays for them immediately. The delivery is processed at the same time as when the order is created and a cash invoice is printed immediately: billing is therefore related to the order, unlike rush and standard orders. Receivables are not created for the customer, as they are for rush and standard orders because the amount in the invoice is immediately type posted to a cash account. BV. In the standard system, sales document type BV (CS) is saved for cash sales with immediate delivery When the sales employee creates a cash sale, the system automatically proposes the current date as the date for delivery and billing. Once the order has been posted, a delivery with type BV is created immediately in the background and the system prints a document that is used as an invoice for the customer.
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Cash sales order: va01-ZCS

Delivery:

Invoice:

3.3 Rush Order: In a rush order transaction, the customer picks up the goods or you deliver the goods on the same day as the order is placed. In this type of order RO, The delivery document will be created as soon as you save the sales order. But you bill the customer later. In a rush order, the customer picks up the goods immediately, or you deliver them on the same day as when the
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order was created. When you save the rush order, a delivery is automatically created in the standard system. Billing the rush order takes place as normal, after the delivery. In the standard system, sales document type RO is saved for rush orders with immediate delivery type LF. Once the goods have been removed from storage, the goods are picked, and goods issue is posted. Once the billing documents are created (for example, in collective processing), invoice papers are printed and sent to the customer.

Rush order:-ZR01

Delivery:

Invoice:

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3.4 Return order Return process is a common process in SD. Customer may be not satisfied with the delivered goods or the deliverable is not what customer exactly wants. In this case, customer wants to initiate the return process. Sales department creates return order using transaction VA01. Standard return order type is RE. It can be copied out and adapted according to custom requirement. The return order can be created with reference to sales order or billing document. Sales department creates return delivery document using transaction VL01N. The standard return delivery document has delivery type LR. This delivery type is configured in return order type RE. Below picture shows their relationship. After the return delivery document has been created. Logistics department can post the document and receive the return goods to the warehouse.
Returns order: ZRE1

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Returns delivery:

Return Invoice:

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Chapter 4
User Manual

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SAP Sales and Distribution Helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are : pre-sales support, inquiry processing, quotation processing, sales processing, delivery processing, billing and sales information system. SAP SD application components fulfills many of the international requirements that supports the sales and distribution activities with functions such as pricing and conditions, customer order processing, delivery monitoring, billing, credit and risk management The Sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the Order to Cash process. It includes the following information and processes:

order

Customer Master and Material Master data

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Sales Orders Deliveries Pricing Billing Credit Management

Sales & Distribution (SD) is one of the core and most-used modules of SAP R/3 products beside Financial & Controlling (FICO), Material Management (MM), and Production Planning (PP) modules. The main areas covered by SD module are:

Pre-sales activities, including Inquiry and Quotation creation. Sales Order processing, including Sales Order (SO) creation. Shipping, including Outbound Delivery document creation. Billing, including Billing document and invoice creation.

Order to Cash business process associated with the SAP SD module:

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Subcomponents of the SAP Sales and Distribution (SAP SD) Module:

Master Data Sales Support Pendulum List Indirect Sales Sales

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Shipping and Transportation Billing Empties Management Credit Management Foreign Trade/Customs Sales Information System

This is brief review of the components and processes associated with the SAP SD module.

Master Data:
Master data, which may include reference data, is information that is key to the operation of business and is the primary focus of the Information Technology (IT) discipline of Master Data Management (MDM). This key business information may include data about customers, products, employees, materials, suppliers, etc. which often turns out to be non-transactional in nature. In this regard, master data can support transactional processes and operations, but its use is certainly not limited to such (analytics/reporting is another area greatly dependent on an organization's master data). Master data is often used by several functional groups and stored in different data systems across an organization and may or may not be referenced centrally; therefore, the possibility exists for duplicate and/or inaccurate master data. Thus Master Data is that persistent, non-transactional data that defines a business entity for which there is, or should be, an agreed upon view across the organization

TERMINOLOGIES:
SALES ORGANIZATION: A representation of a selling unit responsible for product liability and other claims made by customers Each business transaction is processed within a sales organization Master Data Maintenance for Customers, Pricing at Sales Organization Level Sales Organization Assigned to a Company Code where Sales Revenue is Recognized (Links SD & FI)
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 Plants Assigned to a Sales Organization DISTRIBUTION CHANNEL: Used to define how different products reach consumers (I.e. retail, wholesale, or direct sale) Relevant Master Data such as price, minimum order qty, and ship-from location may differ between each channel

Each Sales Order travels through one Distribution Channel Distribution Channel assigned to a Sales Organization (I.e. direct sale for Merchandise items)

DIVISION: A way of Grouping Materials, Products, or Services o Assign each product line to a particular division Define customer-specific agreements for each division, including partial deliveries, pricing, and payment terms SALES AREA: Sales Area is a Combination of: o Sales Organization o Distribution Channel o Division All customer data relevant for sales is defined according to the sales area (I.e. can specify for each customer how pricing is done in each sales area) Links the Order Entry System(SD) to the Financial/Managerial System(FI/CO)

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Plant and Storage Locations Companys productions locations and branch offices are represented by Plants. One Company code may contain several Plants. The plant is the location at which goods are manufactured or a service is performed. A plant may consist of several physical Storage Locations.

Sales office:

. Geographical aspects of the organizational structures in business development and sales are defined using sales offices. A sales office can be viewed as an actual office or perhaps a territory or region. Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a particular sales area, the sales office must be permitted for that sales area. A sales office can be assigned to more than one sales area. Employees of a sales office can be assigned to sales groups defined for each division or distribution channel.

Sales group:

Sales groups are assigned to sales offices.

Salesperson: A sales group consists of a certain number of salespersons. A salesperson is assigned to a sales office and group in the sales employee master record. Thereafter you can select this personnel master record in the partner screen of a sales document.

INFORMATION ON SALES PROCESS:

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Sales quotation Before ordering, customers often require a sales quotation for review in their company. You create it as a proposal of your goods and services to a customer or lead. It does not result in any posting that alters quantities or values in inventory management or accounting. Sales order The sales order is a commitment from a customer or lead to buy a product or service. The document is important for planning production, creating purchase orders and scheduling resources. Delivery You create a delivery note to indicate that the goods have been shipped. A/R invoice After you have delivered the goods or provided services, you bill the customer using an A/R invoice. With this document, you request payment from your customer and record the revenue in the profit and loss statement.

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Pre-sales Activity:
The pre sales activity includes Establishing and maintaining customer relationships. Examples: entering and tracking customer contacts; mailing campaigns; answering customer telephone queries; inquiries; quotations; tracking prospective; tracking competitors and their products. Two Main documents in Pre-sales Activity

Inquiries: customers requests for non-binding sales information. The status becomes
completely references in a standard system when at least a partial quantity is used.

Quotation: offers to customer for delivering materials or providing services, legally binding
throughout the specified validity period. The status becomes completely references in a standard system when the full quantity is used. The Enquiry and the quotation leads to a sales order.

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TRANSCTIONAL CODES IN SAP SD:

SD Master Records: Business Partners XD01/VD01 Create Customer Master Centrally
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XD02/VD02 Change Customer Master Centrally XD04/VD04 Display Changes to the Customer Master Centrally V-07/VD01 Create One-Time Customer (Sales) V-08/VD01 Create Payer (Centrally) V-09/VD01 Create Ordering Party (Centrally) Conditions VK11 Create Condition VK12 Change Condition VK14 Create Condition with Reference SD Sales Process Sales Inquiry VA11 Create Inquiry VA12 Change Inquiry VA15 List of Inquiries Sales Quotation VA21 Create Quotation VA22 Change Quotation VA25 List of Quotations SDQ3 Completed Quotations V.04 Display Incomplete Quotations Scheduling Agreement VA31 Create Scheduling Agreement VA32 Change Scheduling Agreement VA35 List of Scheduling Agreements V.05 Display Incomplete Scheduling Agreements Contracts VA41 Create a Contract VA42 Change a Contract VA45 List of Contracts V.06 Display Incomplete Contracts SDV1 Display Expiring Contracts

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SDV2 Display Expired Contracts SDV3 Display Completed Contracts Sales Order VA01 Create a Sales Order VA02 Change a Sales Order VA05 List of Sales Orders V.02 Display Incomplete Sales Orders (Sales Order Error Log) V.14 Display Blocked Orders SDO1 Display a List of Orders Within Time Period Debit Memo Request Processing VA01 Create a Debit Memo Request VA02 Change a Debit Memo Request VA05 List of Debit Memo Requests V.14 Display Blocked Debit Memo Requests SDO1 Display a List of Orders Within Time Period Credit Memo Request Processing VA01 Create a Credit Memo Request VA02 Change a Credit Memo Request VA05 List of Credit Memo Requests V.14 Display Blocked Credit Memo Requests SDO1 Display a List of Orders Within Time Period Returns VA01 Returns Order VL01N Returns Delivery VF01 Credit for Returns Shipping and Transportation Delivery VL01N Create Delivery VL02N Change Outbound Delivery VL22 Display Delivery Change Documents VL71 Output from Deliveries VL10A Process Delivery Due List
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Picking VL06O Sel. Outbound Deliveries for Picking Post Goods Issue VL06G Deliveries for Goods Issue VL09 Cancel Goods Issue for Delivery Note VL23 Goods Issue (Background) SD Billing

VF01 Create Billing Document VF02 Change Billing Document VF04 Process Billing Due List VF05 List Billing Documents VFX3 Release Billing Documents VF31 Output from Billing VF11 Cancel Billing Document

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Chapter 5
Conclusion

SAP enables to positively transform a Company so that the maximum potential of the business can be reached. SAP provides the tools needed to improve your companys value. The rule of thumb in determining SAP enterprise structure is to try to create as simple as it can.

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Due to implementation of SAP ,all the data is been integrated and is been available at a single point from where it can be accessed and used for decision making by the top level management for making strategic decision. SAP has helps a company to increase its revenue by having more efficiency and productivity in the external as well as internal processes with automation of work, which used to take a longer time with the older system. It brings in more transparency and accuracy in the work of the employees with reduction of errors that used to takes place with the manual system or the older legacy system.

ANNEXURE
Document Flow:standard order

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Document Flow: cash sales order

Document Flow: Rush order

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Document Flow: Return Order

Bibliography
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http://scn.sap.com.
www.saptechies.com www.alphabrick.com. www.sap.com

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