Business Process Design (BPD)

Shan Foods Private Ltd.

Credit Memo Processing (1EZ) – International Sales
Debit Memo Processing (1F1) - International Sales
Invoice Correction Process with Credit Memo (BKL) - International Sales
Invoice Correction Process with Debit Memo (BDQ) - International Sales
PROJECT IDENTIFICATION

Project Name CPI Project Number

Shan Food Digital Transformation Project
Customer Name Customer Number
Shan Food Pvt. Ltd.
SAP Project Manager Customer Project Manager
Mr. Muhammad Faisal Siddiqui Mr. Raheel Maqsood Khan

DOCUMENT IDENTIFICATION

Author Document Location (repository/path/name)

Hasan Muhammad Anwar ALM
Version Status Date (YYYY-MM-DD)
1.0 Draft 2022-01-07

REVISION HISTORY

Version Date Description

1.0 January 07th 2022 Draft
REVIEW AND APPROVAL

Mr Naveed Khan Date (YYYY-MM-DD)

Head of Department – International Sales Shan
Foods Private Limited

Mr Syed Rizwan Date (YYYY-MM-DD)

Track Lead – International Sales Shan Foods
Private Limited

Mr Ayaz Ul Haq Date (YYYY-MM-DD)

SAP Power User – International Sales Shan Foods
Private Limited
REVIEW AND APPROVAL

Mr Jahanzaib Lilla Date (YYYY-MM-DD)

Head of Department – Shan Foods Private Limited

Mr Haris Khan Date (YYYY-MM-DD)

Track Lead – Shan Foods Private Limited

Mr Hafiz Faraz Date (YYYY-MM-DD)

SAP Power User – Shan Foods Private Limited
REVIEW AND APPROVAL

Mr Raheel Maqsood Khan Date (YYYY-MM-DD)

Shan Foods Private Limited Project Manager

Mr Muhammad Faisal Dabir Siddiqui Date (YYYY-MM-DD)

Siemens SAP Project Manager

Hasan Muhammad Anwar Date (YYYY-MM-DD)

Siemens Lead Consultant SAP Sales & Distribution
TABLE OF CONTENTS
PROCESS DESCRIPTION............................................................................................................................... 5
Business Process Requirements.................................................................................................................. 5
Business Process Description...................................................................................................................... 5
Business Process Diagrams......................................................................................................................... 5
Process Step Detailed Requirements & Solution........................................................................................ 6
Locations Where this Business Process is Performed...............................................................................6
Operational Decisions or Logic within the Process....................................................................................6
Integration Points........................................................................................................................................... 7
Potential Future Process Improvements (out of scope for this implementation).....................................7
FUNCTIONAL SOLUTION DESIGN................................................................................................................ 8
Organization Structure Considerations........................................................................................................ 8
Master Data Considerations (including all relevant data relationships)....................................................8
System Configuration Considerations......................................................................................................... 8
TECHNICAL/DEVELOPMENT RELATED ITEMS...........................................................................................9
Workflow......................................................................................................................................................... 9
Reporting (operational and analytical)......................................................................................................... 9
Interfaces......................................................................................................................................................... 9
Data Conversion / Historical Data............................................................................................................... 10
Enhancements.............................................................................................................................................. 10
Output (e.g. Forms)...................................................................................................................................... 10
Modifications................................................................................................................................................ 11
Third Party Solution..................................................................................................................................... 11
PROCESS DESCRIPTION CREDIT/DEBIT/INVOICE CORRECTION ORDER PROCESSING WITH CLAIM
TYPES

Business Process Requirements

To record the credit & debit claims with respect to their Claim Types.

Business Process Description

This Business Process item describes the entire process sequence for a standard Credit / Debit Memo.

Credit Memo Processing:

A credit memo request is created with the amount to be credited and placed on a billing block for review. It is
then released to become billing relevant and appear on the billing due list. The periodic billing process
creates a credit memo to be sent to the customer and posts a journal entry.

You can apply a credit to a customer account once you determine if a customer has been overcharged
because of a pricing or sales tax rate error. The standard credit memo request can be created as stand-
alone or with reference to a sales order or billing document.

Debit Memo Processing:

The debit memo process is used for applying a debit to a customer account once a determination has been
made that a customer has been undercharged as a result of a pricing or sales tax rate error. The standard
debit memo request can be created as stand-alone or with reference to a sales order or billing document.

A debit memo request is created with the amount to be debited and placed on a billing block for review. It is
then released to become billing relevant and appear on the billing due list. Periodic billing process creates a
debit memo to be sent to the customer and posts a journal entry.
Process Characteristics
Process Trigger Customer Complaint / Credit Claim Request
Order type, Sales Organization, Distribution Channel , Division, Customer # ,
Process Input
Material #.
Process Output Print : Credit / Debit Invoice
Process Owner Internal Sales Representative / Billing Clerk
Process Volumes Medium
Process Frequencies Daily / Weekly / Monthly
Business Process Diagrams
Process Step Detailed Requirements & Solution.

Process Step Description

Solution Description
Ref. to Measure of
Process Step Gap (ID from
ID Requirements as successful
Description Description technical/development
applicable delivery
related items)
Create Credit
/ Debit Memo
SD-PK-01 / Invoice AG_16 UAT
Correction
Request
Approval of
Credit / Debit
SD-PK-02 of Invoice AG_16 UAT
Correction
Request
Execute the
SD-PK-03 Run to create AG_16 UAT
Invoice

Locations Where this Business Process is Performed

Locations
Location Country Function Number of Users Point of Contact

Karachi International Sales 6

Operational Decisions or Logic within the Process

Following decisions & Logics will be available within the process of ir Price Shop Sales Order Creation:

Pricing:

As per policy all pricing will be automatically determined at the time of Sales Order creation.
Pricing will be maintained in Pieces.

Inventory:

There is no impact of Inventory in any case of Credit / Debit / Invoice Correction.

This process will only adjust the value of Customer Ledger Account with respect to Complaint / Claim Type.

Credit Decision:

You can apply a credit to a customer account once you determine if a customer has been overcharged
because of a pricing or sales tax rate error. The standard credit memo request can be created as stand-
alone or with reference to a sales order or billing document.

Debit Decision:

Invoice Correction Decision:

Operational Data:

Plant

Delivering Plant will be defaulted from Material Master.

Payment Terms:

Payment terms will be defaulted from the Customer Master. Payment terms will not be modifiable at the time
of Sales Order

Pricing Date:

User cannot change the Pricing date to Place the order on previous Pricing date should not be modifiable at
the time of Sales Order.

SALES Order UOM:

On Distribution Channel of Fair Price Shop, Order quantity will be entered in Pieces. Since Pieces will be
maintained in the Sales data of Material Master.

Integration Points

Integration Points
ID Integration Point SAP Component Data Element Contacts
1 Cash Payment SAP FI

2 Material Master SAP MM

Inventory
3 SAP MM
Management

Potential Future Process Improvements (out of scope for this implementation)

FUNCTIONAL SOLUTION DESIGN

Organization Structure Considerations

Sales Organization:

Sales organization is the highest level in SD/LE system hierarchy. It can be used to represent a regional,
national or international subdivision of a marketplace in which products are sold. The sales organization will
be responsible for selling and distributing goods and services. It is liable for the products sold and
responsible for a customer’s rights of recourse. Sales organization is assigned to a company code where
sales revenue is recognized (Links SD & FI). Plants are normally assigned to a sales organization.

Following sales organization will be defined for Shan Foods Private Limited

Sales Organization Description Purpose

To report and consolidate sales figures

of all
Shan Foods
1100 products and centralize the controls of
International Sales
Shan Internatioal Sales processes at
this level.

Distribution Channel

Distribution Channel defines the organization‘s reach to market strategy. A distribution channel is a mean
through which saleable materials or services reach the customer. It allows customers to be treated differently
depending on the channel they are assigned to. Master data for customers, conditions and materials can be
maintained separately for each distribution channel. Distribution channel can be used to define
responsibilities, achieve flexible pricing and differentiate sales statistics. Distribution Channel is assigned to
the Sales Organization. The detail grouping of Distribution Channel will be catered in the Customer Master.

Following distribution channels will be defined for Shan Foods Private Limited
 Distribution Channel Description Purpose

From this distribution Channel Shan

Traditional Trade -
11 will sell all Saleable Products to Shan
Retail
Direct & Indirect Distribution
From this distribution Channel Shan
Modern Trade – will Sell all Saleable Products to Shan
12
Mainstream Direct Customers & Indirect
Distribution.
From this distribution Channel Shan
13 E-Services will sell all Saleable Products to all E-
Commerce & E-Distributor.

Division.

Division defines a product/brand marketing strategy of the organization. Division is used to group materials,
products and services sold by the company. Divisions can be used to achieve flexible pricing for materials
and differentiate sales statistics on the basis of materials, products and services. Master data for customers,
materials and conditions can be maintained separately for each division.

Following divisions will be defined for Shan Foods Private Limited

Division Description

00 Shan Foods Products

Sales Areas

A sales area is a unique and allowable combination of a sales organization, distribution channel and division.
Each SD document is assigned to exactly one sales area and this assignment cannot be modified. Shan
Foods sales area will belong to only one company code. This relationship is created by the assignment of the
sales organization to the company code. During the processing of Sales and Distribution documents, the
system accesses master data for customer, materials and conditions according to the sales area.

Following Sales Areas will be defined for Shan Foods Private Limited

Sales Distribution
Division Sales Area
Organization Channel
1100 11 00 1100-11-00
1100 12 00 1100-12-00
1100 13 00 1100-13-00

Credit Control Area

Credit control area is an organizational unit through which Credit department executes all credit related
activities. All Credit checks on Sales Orders will be created on the following credit control areas.
All the financial payment by customers will be recorded as per their Credit control Areas.

Credit Control Area Description

1100 Shan Foods International Credit Control

Sales Area wise Credit Management

Sales Distribution
Division Sales Area Credit Control
Organization Channel
Area
1100 11 00 1100-11-00 1100
1100 12 00 1100-12-00 1100
1100 13 00 1100-13-00 1100

Shipping Point

Shipping point is an organizational element that manages shipping activities. Each outbound delivery is
processed at a shipping point. A shipping point can be a physical location or a logical location. Shipping
points are assigned to plants. A shipping point should have physical proximity to the plant to which it is
assigned.

Following shipping point will be defined for Shan Foods Private Limited

Shipping Point Description

1000 Plot 29 - Recipe Production - SALES

1050 Plot 203 – Wet Range Production SALES

1320 Export Distribution Center (EDC)

Delivering Plant

Delivering Plant is an organizational unit which is used as place from where the product will be delivered to
Customer. In SAP SD the plant is considered as Delivering Plant.

Following Delivering Plant will be defined & assigned for Shan Foods Private Limited :

Delivering Plant Description

1000 Plot 29 - Recipe Production - SALES

1050 Plot 203 – Wet Range Production SALES

1320 Export Distribution Center (EDC)

Master Data Considerations (including all relevant data relationships)

Following Master data will be maintained to execute this process:

 Customer Master.
 Product Master
 Pricing Master
 Credit Master
System Configuration Considerations

Order types:

Following Order types will be defined for the Credit / Debit Memo Process of Shan Foods International Sales.
Defined Order types will be assigned to Shan Foods International Sales Organization

Sales Document Number Range

Sales Documents Usage
From To
ZCRI Credit Request International Sales
ZDRI Debit Request International Sales
Invoice Correction Credit
ZCCI International Sales
Invoice Correction Debit International
ZDCI Sales

Core Configuration
ID Description IMG Activity Owner
1 Order type SPRO>Sales & Distribution Siemens Consultant
>Sales>Sales
Documents>Sales Document
Header>Define Sales Order
type

Billing types:

Following Billing type will be defined for the Process of Credit / Debit Memo of Shan Foods International
Sales.

Defined Billing type will be assigned to Shan Foods International Sales Organization

Sales Document Number Range

Billing Documents Usage
From To
ZCII Credit Invoice International Sales
ZDII Debit Invoice International Sales

Core Configuration
ID Description IMG Activity Owner
1 Billing Type SPRO>Billing>Billing Siemens Consultant
Document>Billing type.
TECHNICAL/DEVELOPMENT RELATED ITEMS

Workflow

Workflows
Data
WRICEF Object
Description Engaged Parties Owner
ID (Sales
Order)
Billing Block at Credit Memo
Request & Debit Memo Sales
Shan-SD-WF001 Request Order

Reporting (operational and analytical)

Reporting
WRICE Report Type
F Description (ABAP, BI, Data Elements Relevant KPI Owner
ID BOBJ)
Order to Cash
SD-R001 ALV
Report
ALV

ALV

ALV

ALV

ALV

ALV
Interfaces

Interfaces
WRICE
Interface Frequency /
F Description Applications Owner
Method Volumes
ID
XX-xx-
I001
XX-xx-
I002
XX-xx-
I003

Data Conversion / Historical Data

Conversions
Conversion
WRICE Conversion # of Objects
Conversion Method
F Source Activities to be Owner
Object (manual /
ID (e.g. cleansing) converted
automated)
XX-xx-
C001
XX-xx-
C002
XX-xx-
C003

Enhancements

Enhancements
Data
WRICE Alternative
Object
F Description Functional Gap SAP Reason Owner
(Sales
ID Standard
Order)
Output (e.g. Forms)

Output/ Forms
Output
Type
WRICEF Data Object
Description (Form, Frequency Volumes Owner
ID (Sales Order)
EDI,
etc.)
Export Credit
Smart
Claim Form Order
Form
Shan-SD-SF08 Printout
Export Debit
Smart
Claim Form Order
Form
Shan-SD-SF09 Printout
Export Credit
Smart
Invoice Invoice
Form
Shan-SD-SF10 Printout
Export Debit
Smart
Invoice Invoice
Form
Shan-SD-SF11 Printout
Modifications

Modifications
ID Descriptio Business/ Functional Alternative Reason Owner
n Data Object Gap SAP Standard
XX-xx-
M001
XX-xx-
M002
XX-xx-
M003

Third Party Solution

Third Party Solution

ID Description Interface/Required Owner
Development
XX-xx-
T001
XX-xx-
TC002
XX-xx-
T003