Sales and Distribution (SD) Process Flow

Supply Chain Process

Customer Order

Picking

Goods Issue

Final Payment

Accounts Receivable

Billing

SAP Process Steps

Sales Quotation
Delivery Note Billing Post Incoming Payment Sales Order Picking Post Goods Issue

Shipping

Billing FI A/R

Sales Sales Order

Core of customer order management No impact to G/L Can reference existing documents Copies key information from master data Automated standard functions ...
availability check 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 the warehouse for further processing (packing, loading) Packing: Determines packing materials and packing details.

Shipping Post Goods Issue

Completes the shipping process Typically performed when customer takes ownership Updates inventory Updates G/L accounts
Cost of goods sold Inventory

Billing
Generate customer invoice Updates FI
Customer account G/L accounts: revenue, discount, etc.

Applies relevant pricing Updates customer credit

Sales & Distribution

- Organizational Structures -

SD Organization Structure (Sales Area)

Company Code

Sales Organization 1

Sales Organization 2

Distribution Channel 1 Division

Distribution Channel 2

Sales Area
Organizational element comprised of: Sales Organization Distribution Channel Division Will be used to link together the organizational aspects of sales to customers Used for statistical analysis

Sales Organization
Sells and distributes products, negotiates terms of sales and is responsible for these business transactions. Critical organization element to the definition of business markets. A business transaction is linked to one Sales Organization.

Sales Organization

Distribution Channel
Identifies how products and services reach the customer Can be assigned to one or more Sales Organizations

Distribution Channel

Division
Often times used to define product line distribution Organization level to which customer specific information and requirements are maintained e.g. pricing, partial delivery Assigned to one or more Sales Organizations

Division

SD Organization Structure with Business Development and Sales.

Company Code

Sales Office 1

Sales Office 2

Sales Group 1

Sales Group 2

Sales Group 3

Sales Group 4

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

Sales Group
Sales Group - Sub-division of a sales office, territory or market.

Sales Office to Sales Area

Sales Group to Sales Office

SD Organization Structure with Shipping and Loading Points.

Plant 1 Shipping Point 1

Plant 2

Plant 3

Plant 4

Shipping Point 2

Shipping Point 3

Shipping Point 1

Loading Point 1

Loading Point 2

Loading Point 3

Loading Point 4

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 more specialized handling

Shipping Point

Loading Point

SD Organization Structure linked to MM Organization Structure.

Company Code

Plant 1

Plant 2

Plant 3

Plant 4

Sales Organization 1

Sales Organization 2

Plant
A Plant can be defined as a location that holds the valuated stock. A Production-planning view defines a plant as an organizational unit that is central to production planning. A plant can also be defined as a location that contains service or maintenance facilities.

Plant

Sales & Distribution

- Master Data -

SD Master Data - Core Elements

Master Data

Pricing

Sales & Distribution

- Customer Master -

Customer Master
General Data

Sales & Distribution Data

Company Code Data

Customer Master
Centralized data for both SD & FI Segmented into three sections General data - address & communication Company code data (FI) - banking and payment information related to FI Sales data (SD) - pricing, delivery, output The sales data is specific to one sales area and is therefore dependent on the sales organization

Customer Master by Sales Area

Customer Sales Organization Distribution Channel Division

Customer Master By Sales Area

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 to transactions

Sold-to

Ship-to

Bill-to

Payer

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 assigned partners you may need to add additional partners to carry out your business transactions.
Sold-to Ship-to Bill-to Payer

Business Partners

Business partners Sold-to

Customer that orders the goods Can perform all primary partner functions sold-to, ship-to, payer, bill-to Primary type of business partner Cannot be linked to other sold-to partners

Sold-to
Ship-to

Bill-to
Payer

Business partners Ship-to

Party that receives the goods Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer

Business partners Bill-to

Party that receives the invoice Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer

Business partners Payer

Party that sends the payment Can be created as an independent partner and linked to one or more sold-to partners Sold-to Ship-to Bill-to Payer

Shipping

Shipping Overview
Comprehensive functionality to support picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management

Shipping Overview
Order Order Order Delivery Delivery Delivery Delivery Order

Order
Delivery

Order Combination

Partial Delivery

Complete Delivery

Shipping Overview
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
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

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

Picking Delivery Note

Status

Packing Loading Post Goods Issue

Billing Overview
Automated invoicing based on sales orders and/or deliveries Functionality for processing credit/debit memos and rebates Integration with FI & CO-PA Updates customers credit data Can create pro forma invoices

Automatic Account Assignment

Defines the G/L accounts that billing entries are posted to revenue, deduction, freight charges
Applicatio Condition Chart of Sales n Type Accounts Org. V From Sales Doc. KOFI From Table CHRT From Sales Doc. SOxx Cust Acct. Grp. 01 Accoun G/L t Key Account ERL

61000 0 From From From From Sales Customer Pricing Table Doc. Master Proc

Billing Methods
Separate invoice per delivery

Order

Delivery

Invoice

Delivery
Delivery

Invoice

Collective Invoice

Order Order

Delivery
Delivery Delivery

Invoice

Invoice Split

Order

Invoice
Invoice

Billing Documents
Explicitly specify documents Billing due list builds a work list of invoices that should be generated

Automatic posting to FI

Credit Management
Credit and risk management takes place in the credit control area. One credit control area contains credit control information for each customer. A credit limit check can be carried out when sales documents are created or changed. Reduce risk of bad debt. Focus on reliable and profitable customers.

 Fasten the process of checking a customer credit limit Faster credit-worthiness check

Key process flows covered

Enter Sales Order Check Credit Limit Block Sales Order Release Sales Order Delivery Sales Order

Credit Management