ERP

Enterprise Resource Planning

Introduction

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Definition
Enterprise resource planning is a
strategy to plan the resources to get
the best out put in an organization.

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SAP
SAP (Systems Applications and
Products in data processing ) is an ERP
product, it integrates the overall
organization into a system.
It is made for providing ERP solutions
to the organizations.
It is introduced in 1972 by the
company SAP AG. its a Germany based
company established by 4 former
employees of IBM.
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Role of SAP in organizations

Organization w/o SAP Practice

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Organization with SAP Practice

Advantages to have SAP

Practice

SAP is the wonderful software for ERP

solutions.
It fills the gap between the different
departments together in a company.
It helps to get the reports analysis to
take quick and effective decisions.
It saves the time while serving the
customers by quick response.
It reduces the production and
maintenance cost in organizations.
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SAP-SD
Enterprise Structure In SAP-SD enterprise structure we have
the following organizational elements.
1.Sales organization
2.Distribution channel
3.Division
4.Sales area
5.Sales office
6.Sales group
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Sales Organization
Sales organization is a highest organizational element
in sales and distribution module, which takes care
about sales processes with in a company code.
Sales organization is decided based on the
geographical locations. Based on the requirement we
can have multiple sales organizations under one
company code.
SAP always suggests to have only one sales
organization.
Sales organization is assigned to the company code.
Relationship: the relationship between the sales
organization and company code is one to many
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Distribution Channel
Distribution Channel is one of the organizational
element in sales and distribution module.
Distribution channel is a channel through which
the goods are delivered to the customer.
Ex: Retail, whole sale, direct, Internet and
institutional sales etc.
Distribution channel is assigned to sales
organization.
We can have multiple distribution channels with
in a sales organization.
Relationship- Relationship between Distribution
channel and sales org. is many to many.

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Division
Division is one of the organizational element in SD.
Division is the range of the products or product
line is called as division.
Division is assigned to sales Organization, because
sales organization decides the divisions to be sold.
Division is decided based on the purpose and
usage of the product.
A company can have multiple Divisions with in a
sales organization.
Relationship- the relationship between the Division
and Sales organization is many to many.

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Sales area
Sales area is a combination of the
sales organization, distribution
channel and division.
Sales area represents the basic sales
processes
of the company.
A Company can have multiple sales
areas.
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Sales office
Sales office is an organizational
element in SD.
Sales office is a geographical
location, where the sales activities
are to be taken.
We assign sales office to the sales
area.

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Sales group
Sales group is an organizational
element in SD.
Sales group is a group of employees
who work for a particular Division
with in a sales office.
Sales group is assigned to sales
office.

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Basic view of enterprise structure

in SD

In next slide we can see how the

organizational elements are related
together in sales and distribution.

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Sales area

Sales line

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Customer Master
Maintaining the data of the customers in
R/3 system is called customer master.
Customer master data is maintained at 3levels.
1. General data
2. Company code data
3. Sales area data
Again these views have tabs and fields.

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1. General data
General data contains the data which is related to
the customer general information. Example like
communication address,etc.
In this view we have 4 important tab pages. those
are,
1. Address- here we specify the address of the
customer.
2. Marketing- in this tab we have one important
field is
Customer classification:- it specifies the
classification of the customer. it is defined based on
the turnover they generated. Ex: A- 50-60 lac
B: 30-50 lac, C: 20-30 lac.

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3.Unloading Points- here we have to specify

the location where we have to unload the
goods at customers place.
In this tab page we have 2 important fields.
Receiving points- here we have to specify
the receiving points under one unloading
point. we can have multiple receiving points
with in an unloading point.
Goods receiving hours- here we have to
specify the flexible hours of the customer for
the goods to be received at customers place.
4.Contact person- here we can specify the
contact person who is responsible at
customers place.
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2. Company code data

this view contains the data related to financial
In this view we have two important tab pages.
transactions.
1. Accounting management- which contains
the accounting information. In this tab we have
the field called
Reconciliation account- it is the the account
in G/l account the values will parallel posted to the
sub ledger account. It is specified to the customers
to maintain the balance sheet in simplified way.
2. Payment transaction- the information
regards payment transactions is maintained here.
here we have 2 fields.
Terms of payment- it represents the payment
periods and discount percentages given to the
customer.
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Payment history record- if we check this field

the payment history of the customer is
recorded.

3. Sales area data

In this view we have to maintain the
data related to sales transaction.
In this view we have few tab pages with
fields. those are,
1. sales- in this tab page we have the
following fields
sales district- it specifies the district in
which the customer is existed.
sales office- it specifies the sales office
in which the customer exist.
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Sales office- it specifies the sales group

which is taking care of the customer.

Customer group- it specifies the group of

the customer which can be based on
the transaction they execute.
Currency- it specifies the currency of the
customer.
Switch off rounding- if we check this field
the order quantity will not be rounded.
Customer pricing procedure- it enables
the system to automatically determine
a corresponding pricing procedure.
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2. shipping- in this tab page we have

few fields
Delivery priority- it specifies the
delivery priority
Shipping condition- it specifies the
shipping condition
Delivering plant- it represents the plant
which delivers the goods to the
customer
Pod- it specifies the proof of delivery
after shipping
Order combine- if we check this field
the open orders will be combined.
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Partial delivery- here we can specify that

whether partial deliveries are allowed or not.
Max partial deliveries- here we can specify
the maximum partial deliveries for the
customer.
3.Billing- in this tab page we have few fields.
Rebate- if we check this field the customer
will get rebate.
Inco terms- here we have to specify the
international common terms.
a/c assignment group- it enables the system
to post the sales values of the customer to
g/l account.
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Tax classification- it specifies the customer is

liable for tax
or not.

4. Partner functions- here the

partners of the customer are existed.
sold to party- customer who raise the
order
ship to party- customer who receives
the goods
bill to party- customer who receives
the bill
payer- customer who pays the bill

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Note: if we want to create a customer, first

we must make few configuration settings.
those are

Account group- it is a parameter to

control the customer master. It
represents the basic function of the
partner. We have to define different
account groups for different partners.
Number ranges- every customer
will have one number which is
unique, for this we have to define the
number ranges and assign the
number ranges to the account group.
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Defining partner functions- Based on the

requirement the customer may have
different
partners or it may act like all.
Like

sold to party
ship to party
bill to party
payer
To get these partner functions in
master data we have to configure
these.
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