Features of SAP SD module

Creat Material Stock.; MB1C ( Other Goods Receipts) for opening balance
creation of material.MIGO (used for Issue / Transfer / Receipt of material),
Stock Overview MMBE
Determine Pricing by Item Category in SAP: OVKO Create Sales Order (VA01),
Picking & Packing Goods, Post Goods Issue (GI) Tax Determination Procedure :
VK12, OX10, OVK4, OVK1 Customer Material Information VD51

Return Order, Free of Charge & Subsequent Delivery,

Create Debit / credit memo Text Type in SAP: VOTXN,
To create Accounting Key : OV34,
Credit Management T code OVA8
Material Substitution Reasons OVRQ,
Item proposal VA51
Schedule Line Category Determination VOV6
Item Category Determination: VOV7, VOV4 An
item category defines how a line item behaves in sales transaction. Listing, Determination and material exclusion
SAP Uses Item category to process a material differently in each sales
document type. Material Determination (Substitution) VB11
eg AFX – It is inquiry Item category ,it is not relevant for billing.
AGX – It is quotation Item category ,it is not relevant for billing. Condition Exclusion Group in SAP using Tcode OV31
TAN – It is standard Item category, it is relevant for billing.
Availability Check ,Inventory Management - Physical inventory etc.
OUTLINE AGREEMENTS CONTRACTS (QTY, VALUE, CONTRACTS)
SCHEDULING AGREEMENTS,
Determinations : Pricing, Accounting, Material, Item, Free Goods,
Controls: Field Status, Output controls , copying controls
Processing: Sales Order - standard and special sales 3rd party,, inter-co
(cross-selling) consignment, , item proposal/dynamic product proposla etc.
 OUTLINE AGREEMENTS

Contracts are agreements

between your organization and the customer. The contract
does not contain any schedule line, delivery quantity or
delivery dates. It is valid for a certain period of time with a
start date and end date. Generally, no restrictions apply to
the different contract forms. There are actually 2 types of
contracts.
1.Quantity Contract (to order specific quantities of a
product in a given period.)
2. Value Contract (customer agrees to purchase a fixed
total value of goods and services during the defined period.)

To create a quantity contract, use the following path:

Logistics –> Sales and Distribution –> Sales –>Contract –
>Create (t code VA41)
Availability check is one of the key functionality in sales document processing.
• The confirmation of Delivery Processing in SAP Sales and Distribution delivery of
goods to the customer while entering a sales document is carried out on the basis
of is check.
• Availability check can be carried out on the deadline of goods availability that would
be necessary to consider the picking, packing and shipping time. Availability check
can only be carried out if the transfer of requirements takes place for goods from
sales to purchase or production.

Availability check in Sales

Requirements generated in Sales & Distribution need to be transferred to material
requirements planning to ensure the quantities ordered are available to be delivered
on time to Customer. This is called transfer of requirements (TOR).
Availability check in SAP Delivery
is initiated during creation and check is done for the picking date. The check is carried
out on the same criteria as in Sales order processing. Availability check at delivery
level is carried out for following reasons. The check may not have done for items at
order level and hence needs to be done at delivery stage. Although check may have
been carried out in order the availability situation may have changed due to various
unknown reason. Dynamic check at this stage would ensure correct status in terms of
availability so that further actions after delivery i.e. Picking, Packing etc are not
affected.
Normally all Sales activities (leaving out the activities undertaken by Marketing function) can be broadly categorized into pre
sales and post sales activities.
Pre sales includes all the activities or processes that are performed in order to convert a lead or prospect to a paying customer or client. The pre-sales concept is
applicable across all the businesses that deal with customers and clients in order to sell their products and services.
Pre Sales Activities often include prospect and qualify leads, product research, market research, data analysis, customer analysis, making unique selling propositions,
managing deal qualifications and proposals, etc. These activities combined are performed in order to sell the product.
Pre Sales Documents : 1. Inquiry (VA11/12/13) 2. Quotation (VA21/22/23) nquiries :Inquiry documents are customer request for information about product.(e.g. Is
product is available, product cost,delivery date etc). Quotes: This is a legally binding document to the customer, for delivering product or service to customer T-code for Quotes is –
Pre Sales Support : It defines tracking of customer contacts by sales visits, phone calls, letters and direct mailings.
Customer Tracking : Sales personnel track customer.
Mailing Campaigns: Sales personnel or company arrange a mailing campaigns to reach customers. The sales documents in SAP SD are in 4
categories:
Customer telephone Queries: Sales support personnel answer Customer queries.`
1. Presales
a. Inquiry - IN
Post Sales activities include Farming, Relationship Management and Support. B. quotations - QT
Sales Document Types: c. Free of Charge delivery - FD
Sales order Types: In Sales order there are three levels –
IN – InquiryQT – Quotation 2. sales oRders
Header level data Item level
OR – Standard Order a. Standard order - OR
data Schedule level data b. Rush order - RO
RE – Returns Order
In SAP several standard sales documents types are available.We can c. Cash sale - CS
CR – Credit Memo Request
create custom sales document type by T-code-VOV8.IMG NSales and 3. Outline agreements
DR – Debit Memo Request
Distribution > Sales > Sales Documents > Header > Define Sales a. Quantity contract - CQ
LF – Outbound Delivery Document
b. Maintenance contract - WV
LR – Returns Delivery document Types:o.range for sales document type VN 01
Consignment order is one where c. Rental contract - MV
F2 – Sales Invoice d. Scheduling agreement - DS
G2 – Credit Memo you have placed your product at a
4. Complaints
L2 – Debit Memo customer’s premises and the a. Credit Memo request - CR
customer asks to sell or dispatch b. Debit Memo request - DR
Consignment process : them when he needs it. There are c. Subsequent delivery, free of charge - SD
Consignment fillup (CF) = KB. four different document types d. Return - RE
Consignment Issue (CI) = KE associated with consignment
Consignment Returns (CONR) = KR
Consignment pickup (CP) = KA processing having their own
functionality.

Incompletion Log
An incompleteness log is a mechanism to maintain and verify a list of all the essential information or fields in a
sales document that may be required by the business at the time of order entry. It helps to make sure that the
SAP system will not allow to save a document if some of the required fields are not entered in the system. You
can define these required data fields to be populated at the time of sales order processing in customizing for the
incompletion procedure. You can customize incompletion log and assign it to your customized document type.

For example, in the standard incompletion log for a sales order type “OR”, the system prompts for Purchase
Order number to be entered. In our example of carrying out sales to a distributor or a dealer, you can customize
the incompletion log with no PO number required setting and assign it to your customized SAP SD Sales
Document types for recording sales to a dealer or a distributor.
SD ORDER ( t code VA01 /02 / 03) is a document created manually, by interface, using a
pre-sales document such as a quotation or a contract. Its main functions are :
• Generate post-sale documents for contracts, commercial offers, calls for tender
• Generate purchase orders
• Check that the stock will be available on the desired delivery date, manage partial orders or not
• To determine the dates of availability of the goods, taking into account the preparation, loading and transport
times
• Monitor the progress of the order through a status system
• To have the document flow between the 3 main documents SD order/delivery/invoicing
SD delivery (VL01N/VL02N/VL03) is a document from one or more sales orders and the main functions of
the delivery are :
• Create an order preparation form for logistics
• Calculate the packing information taking into account the items
• (dimensions, weight, quantity, …)
• Generate the goods issue and move the stocks in the MM stocks section
• To trace the shipment
• Print the delivery form that will accompany the goods
SD invoice is a document resulting from one or more orders or deliveries and the main functions of the
invoice are :
• Generate the invoice
• Generate credit notes in the event of a sale cancellation or claim
• Generate debit or credit notes
• Generate pro forma invoices
• The SAP setup allows you to create different types of documents within the 3 main SD components. These
documents can then have different functional reasons, business rules and behaviour.
• The SD module also allows you to manage price conditions, commercial offers, bills of material made up of
several unit items (example: a POS display)
• These 3 main SD documents order/delivery/invoicing can be generated manually or automatically using
scheduled programs.
 Shipping Point & 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 information.

To define Modes of Transport

Go to: SPRO → IMG → Logistics Execution → Transportation → Basic Transportation
Function → Routes → Define Routes → Define modes of transport → Execute.
Define Routes & Stages
Go to: SPRO → IMG → Logistics Execution → Transportation → Basic Transportation
Function → Routes → Define Routes → Define Routes and Stages → Execute
Maintain stages for all routes
Go to: SPRO → IMG → Logistics Execution → Transportation → Basic Transportation
Function → Routes → Define Routes → Maintain Stages for all routes.
Enter the following details −
Route,Stage Category, Departure Point,Destination Point, etc.Once done, click save.

Shipping *Outbound Delivery - see note page below

`
Listing, Determination & Exclusion
Listing − You can create a material
list for specific customers, which
allows those customers to order only
those materials which are
maintained in the list.
Creating Material Exclusion
Use T-Code: VB01 Select Exclusion Type: B001
Material exclusion / listing is a provision to restrict a
customer’s buying choices. For example, if certain materials
are defined in “Exclusion List” of a specific customer, then,
the customer can not buy material from “Exclusion List”.

Exclusion − You can also maintain
an exclusion record for specific
customers and this doesn’t allow that
customer to order those materials.
To display Material listing and
exclusion, go to SPRO → Sales and
Distribution → Basic functions →
Listing/Exclusion.
Example – A company produce 10 materials and company
want to sell only 6 material to customer ABC then company
create a list of these 6 material as “Listing List “(products that
can be ordered) and remaining 4 material may be in
“Exclusion List”. In this scenario Customer can buy only 6
material from “Listing List”.
Material exclusion / listing is controlled by condition
technique. System check for material in “Exclusion List” first
and later “Listing List”. T-code- 1. VB01 to create, 2. VB02 to
change, 3. VB03 to display.

The purpose of Listing and Exclusions is to create a material list for a specific customer such that
only those materials which are maintained in Listing list can buy by a specific customer, this is
called as “Listing” and you can also maintain an exclusion list such that a specific customer
cannot buy those materials which are maintained in exclusion list, this is called “Exclusions”.

For e.g. in some situations, certain restrictions occurs at company level prevents from shipping
certain products to some areas. So, there is a need to restrict those certain products to the
customers resided in those particular areas. This restriction can be done by “Exclusion
Material determination (also called material substitution) is a technique provided by
SAP to allow you to substitute one material for another during the processing of a sales
cycle. The technique is really useful for providing solutions for a variety of day to day
business requirements that demand material substitutions. Here are a few real-world
examples:

• Replacing an obsolete/discontinued material with a new one so as to avoid entering

an order that erroneously commits the enterprise to sell a discontinued material to
the customer
• Automatically substituting the agreed-upon alternative material in an order when the
original ordered material is out of stock
• Supplying specially packaged versions of the original material during holiday
seasons such as Christmas or Thanksgiving
• Executing a sales promotion in which you want to enclose flyers or promotional
materials along with the materials ordered by the customers

Configuring material determination entails the following steps

• Defining Condition Tables, Access Sequence, Condition Type, and Maintaining

Determination
• Procedure Assigning Determination Procedure to Sales Document Types
• Define Reasons for Substitution and Substitution Strategies.

IMG > SD > Basic Functions > Material determination > Maintain pre requisites for
material determination.
Cross selling
a sales practice where in retailers offer customers additional merchandise to which they are ordering,
Step by step to achieve Cross Selling in Sales scenario Cross selling is a concept
1. Create custom condition table via Sales and Distribution->Basic Functions- by which the business
>Cross Selling->Define determination procedure for cross selling->Create can improve the sales. By
Condition Tables:4.
2. Create a new Access sequence Z001, and assign the condition table created
using this concept the
previously to it. business can offer
3. Create a new condition type ZS01 and assign the access sequence created combination material for
in step two to it. ordered material.
4. Create a new determination procedure ZS0001 based on Usage D ( Material
Determination ), AppAssign this profile to a given combination of Sales Ex: If the customer
Organization, Distribution Channel and Division, plus Cross selling procedure placed for the order for
lication VS (Cross Selling) and assign the condition type ZS01 created in
previous step to it.
computer then computer
5. Define customer procedure for cross selling:And assign it to Sales document stand can be suggested
type OR: as a combination
6. Create a new Cross Selling profile Z00001, and assign the cross selling material. It can be
procedure created in step 4 to it. mapped by using cross
Suppose I have three products with ID 11, 13 and 14. When 11 is entered in selling concept that uses
Sales Order line item, I would like that 13 and 14 are automatically determined condition technique.
for cross-selling purpose.
As a result I maintain the condition record for material 11 as base:Now it’s
When the user raises the
ready for test. Create a Sales order with type OR, maintain 11 as line item and
sales order and specifies
press enter key, another two materials 13 and 14 are determined and displayed
ordered material then system
in popup as expected.
automatically pup-up a box in
SAP Cross Selling Transaction Codes: VB41 — Create cross-selling, VB42 —
which system displays
Change cross-selling, VB43 — Display cross-selling, VB44 — Copy cross-
suggested material
selling, ...
 PRODUCT PROPOSAL / ITEM PROPOSAL
-a functionality in SAP which gives an options at order entry to pull out all the required items/
product range to sale order with a single entry .
Difference between the item proposal and material determination product proposal
Item proposal and product prop`osal are the same.
Item proposal is the list of materials and order quantities that can 1) Use transaction [VOV8] to
be copied into the sales order from the customer master data. configure the document type ("MS"
We use VA51 to create the item proposal. Here we get a for product proposal).
number.This number is then linked to the customer master data in 2) Use transaction [VA51] to create
the sales view. This is very commonly used. a proposal.
Material determination is very closely related to item proposal
3) Enter the item proposal on the
/product proposal and is used to swap one material for another in
the sales order using the condition technique.
sales area data (sales tab) of the
The product proposal acts both as an entry aid and also an aid to customer master record.
sales support and promotions. It is particularly useful tool in the 4) In [VA01] to create a sales order,
telephone sales area. During sales document processing the Select Edit & propose items."
materials, that are particularly relevant for a particular customer,
are displayed to the processor. This enables them to provide If a customer frequently orders
appropriate advice to the customer quickly and easily. You can use the same combination of
the sales document history to analyze the customer's purchasing materials, or if you recommend
habits and recognize straightaway if their behavior changes, for
when instance when they suddenly stop ordering a product.
a particular selection of
products for an opening order,
The product proposal differs from cross selling in that it is you can store the frequently
dependent on the customer and sales area, and is therefore used data as an item proposal
displayed in the sales document as soon as you have entered a
customer. Cross selling, on the other hand, is triggered by the in the system. If you wish, the
material. In other words, the system proposes cross-selling item proposal may also include
materials according to the material or a characteristic of the proposed order
material you have entered.
 Free items are employed by a variety of
FREE GOODS DETERMINATION
companies to draw customers. They may be
used as free samples of goods to test the
product’s popularity among customers or for a
promotional event in which free products are
offered to customers who buy a number of
products. Other possible uses for free
products are to provide in terms of service
sectors as warranties and charity purposes.

Config. IMG -> Sales and Distribution -> Basic functions -> Free goods -> Condition Technique for Free goods -
>Maintain field catalogue(Tcode-OMA5)SAP Customizing Implementation Guide ->Sales and Distribution ->
Basic Functions -> Free Goods ->Condition Technique for Free Goods ->Maintain Access Sequence Transaction
Code -V/N1 Maintain Condition tables V/N2, Condition type (V/ N4
SAP Customizing Implementation Guide -> Sales and Distribution ->Basic Functions ->Free Goods ->Condition
Technique for Free Goods -> Maintain Pricing Procedures
The Item Category for Free Goods(standard TANN) is determined as below. The determination combination has
Usage as FREE and a Higher Level Item Category as TAN
IMG > SD > Basic Functions > Free goods > Determine item categories for free goods itemsSPRO -> Sales and
Distribution ->Basic Functions -> Free Goods ->Condition Technique for Free Goods-> Activate Free Goods
Free of charge delivery or subsequent delivery
is made, when a customer is not satisfied with the products or the quantity of good is lesser when delivered. The
company has to initiate a return as per the customer’s request. In this delivery, customer is not charged for
shipping of goods.

Subsequent Delivery − This includes free of charge delivery of disputed goods to the customer. This is required
when incorrect quantity of goods are delivered to the customer.

Creating a return request in the system: T-Code: VA01.For creating a Return Delivery Document, use T-Code:
VL01N.Enter the Shipping Point and then Delivery Date as Return Delivery and then press ENTER.You can then
enter Quantity of goods and click save.

For creating Free of Charge Delivery, use T-Code: VA01 Order Type: Delivery free of charge FD
SAP SD Intercompany Sales Processing & Billing

In SAP sales & distribution module, an intercompany sales occurs when the selling
organization belongs to a different company code than the delivering plant. The
transaction path for accessing intercompany sales billing is:

IMG >> Sales and distribution >> Billing >> Intercompany billin
Example : Suppose there are two company codes namely 1000 and 2000. A customer
may place an order for goods in sales organization belonging to company code 3000.
However, the goods may be manufactured by a delivering plant belonging the company
code 1000.
A sales order is created indicating delivering plant of company code 1000. The sales
organization then invoices the customer for the materials purchased. SAP R/3
automatically creates an intercompany billing document at the same time as the
customer’s billing document is created. This intercompany invoice is sent from the
delivering plant (1000) to the selling sales organization.(3000)

As a rule of thumb, when dealing with different company codes, one may find a need to
transfer stock between two different company codes. However, if the stock be
transferred within the same company code, there is no need for an intercompany
transaction. But in case the stock is transferred between different company codes, a
transfer of value occurs and is an intercompany sale.
 Sales BOM & Multiple Create Sales BOM T- Code: CS01
Free Goods Output: In sales Order we put Main Material
20001058 and system explore BOM and pick
Business Scenario: Sales supporting material e.g. Registration Form, Envelop other two materials xxxxx and xxxxxx
along with main material e.g. *** Card - will be pick automatically in Sales Order PGI and Billing
and supporting two materials will be free. BOM or bill of materials is the detailed
Solution: list of all the raw materials,
Bills of Material is consisting of one Top-level component with some sub
components, or sub-components
component and its quantity. To Explore Sales BOM item category group is
Important in material Master sales: Org 2 view. Based on *Sales order type and required for the manufacture of the
*item category Group of material, determine the item category of Sales Order. finished product.
To Explore the Sales BOM in Item category we need to Set Up ‘’A’’ in Structure There are two ways to process a bill of
Scope materials in Sales. Once you have
Select item category and go to details. In Bills of material configuration there is entered a bill of material in a sales order,
a option ''Structure Scope''. Here we need to put "A" Item category assignment
the system runs pricing, inventory
In the assignment 1st Line is done for Top level material and 2nd Line is done
for component [Red Arrow]. According to item category assignment in sales control, and delivery processing at: Main
order we can control Component material sales price will be charged or free. item level if the material is assembled, or.
To keep our supporting material free, in the assignment we put HLevItca TAN Component level if the material is not
and Default ItCa is TANN assembled.
ITEM CATEGORY DETERMINATION FOR BOM ITEM
SD type ITCaGr Usg
The item category group of the BOM items is HLItCa DftItCa

‘ERLA/LUMF’ and the item category is ‘NORM’. OR ERLA TAQ

OR NORM TAQ TAE
Create Material BOM (CS01) In SAP you can create such type of OR LUMF TAP
a product which is called Bill of Materials (BOM). It refers to the complex OR NORM TAP TAN
component structure, basically this is the list of materials or components OR NORM TAN
which is used to build the final product and from which this product actually OR NORM TAE TAE
consists. For example, a customer is looking for a computer and he/she OR NORM TAN TAE
wants to see the list of hardware the computer consists of. The ERP system NOTE: A – Explode single level BOM item
can store a lot of different spare parts that are used to manufacture a B – Explode multi level BOM item
product which are actually not intended to sell. These spare parts can be CS01 – Transaction code for creating BOM Item
also a part of the complex product structure. Statistical value ‘x’ or ‘y’ Make TAP
 Third Party Sales Order processing
In third party order processing company does not deliver the goods to the customer, instead of that we pass the sales order to third
party vendor, vendor directly deliver the goods to customer than vendor rice the invoice to company, based on this company rise the
invoice to customer, this called as third party.

To processing of third we required some master data and configuration settings we required.

THIRD PARTY ORDER PROCESSING:

Whenever customer place the order for third party material, when we save the sales order system automatically create the purchase
requisition, with reference to this PR we create the PO, this PO will send to vendor , vendor directly deliver the goods to company,
then vendor raise the invoice to company for this we create the MIRO, based on MIRO quantity we rise the invoice to the customer,
this is the process of third party processing.

For doing third party processing we required sum master data and configuration data we required.

MASTER DATA SETTINGS ARE:

In third party material we specific the item category as “BANS”, the material must having the purchasing tab page.

 Whenever customer place the order for third party material system determine the item category is TAS, in TAS we specific billing
relevance is ”F”, this control without doing the MIRO system is not rice the invoice to the customer.

 Than system determine the scheduline category is “CS” in this “CS” we specific the order type is “NB”, item category is “5”,
account assignment category is “1”.

 Order type NB: order type NB will helps to generate “PR” automatically when save the third party sales order.

 Item category : item category will help to pass the item category information from sheduline category to “PR”.

 Account assignment category:

 In copy control between OR __ F2 in item level TAS we specific the billing Quantity is “F”, this control to while creating the
invoice to customer system copy the MIRO Quantity.
 Inter-company STO with SD Delivery, Billing & LIV
inter-Company Stock transport Order with SD Delivery, Billing & Logistics Invoice
verification.
Prerequisites: Knowledge of MM & SD
Two organization structures: one for purchasing and another for sales
eg. Purchasing: Company Code:8888, Plant: 8881, Sto. Loc: 0002, Purchase
Organization: 8881,
Sales: Company Code:6666, Delivering Plant: 6661, Sto. Loc: 0001, Sales
Area:6666, 66, 66, Shipping Point 6666. Steps given in note page
Intercompany vs Intracompany in SAP
InterCompany : Transactions are between two or more related internal legal entities with common control, i.e.
in the same enterprise (Inter = Latin for “BETWEEN”)

IntraCompany: Transactions are between two or more entities within the same legal entity (Intra = Latin for
“WITHIN”)

Well the real difference is that Intracompany processing is determined by company management, whereas
Intercompany has to follow the law.

The amount the R&D department pays the manufacturing department of the same LE for some test chips(of
the silicon kind) is to be sorted out between themselves. However when my manufacturing company in Ireland
sell chips to their sister company in Germany you can imagine the tax authorities care about how much they
charge because they get a % of it in taxes. This what transfer pricing is all about, it is important to get it right
and you need to follow the rules and be prepared to open up your books to the tax people to demonstrate you
followed the rules.
Intercompany: XYZ, New Delhi sends a batch of finished goods to its warehouse in Chennai. In this transfer
 Credit Management

SAP Credit Management takes information in real time

from the SD and FI modules. Allowing a credit analysis on
the flight and gives us the certainty of an accurate analysis
of the clients
Credit Management is a process in which Company sells a product / service to customers on credit basis. The
company collects payments from customer at a later time , after sale of product. The amount of credit fixed by a
company for a customer is called credit limit. The customer can Purchase the product from a company within the
credit limit, and when the credit limit is crossed, order is blocked by the system.

Example– Consider a Company creates a credit limit for Customer of 200,000. Customer can purchase the
product from the company on credit till the credit limit 200,000 is reached.Customer gives an Order # 1 of amount
100000. Again Customer gives an Order # 2 of the amount 1,50000. Now, the total open order crosses credit limit
of a customer.Order 2 is blocked by the system due to credit limit reached.
 Types of Rebates : In a standard system, there are four types of rebates available. They are:
Rebated based on a material / a customer / a customer hierarchy / a group of materials.
A rebate agreement defines the details of the rebate. For example, in the agreement the following
are specified:
• The receiver of the rebate payment
• The criteria of the rebate (customer, customer, and material, etc.)

Rebate process in SD - Components: The rebate process in SAP has three parts:
Configuring rebates Setting up rebates Managing rebate agreements and payments.
Path: SPRO--->sales and distribution--->billingàrebate processing--->condition
technique for rebate processing.
Maintain condition tables for the rebate. Create the required condition tables
like the customer, material, customer/material, etc.
Maintain access sequences. Create an access sequence and place the
required condition tables in it. While creating the access sequence for the field
“type”, we shall specify the value ‘1’ (access sequence relevant for rebate).
Define condition types. Example: BO01-group rebate.BO02-material rebate.
BO03-customer rebate.
Maintain pricing procedures
The rebate basis is nothing but the value based on which the rebate is
calculated (net value) Setting-3: Defining rebate agreement types.
Setting-4: Condition type of group. The condition type group specifies which Note: The sales document type ‘R3’ is the same as ‘CR’ except the
rebate condition types are to be used for the rebate agreement. For configuring corresponding billing type which is ‘B3’ (rebate partial settlement).
this, go to;
Path: SPRO--->sales and distribution--->billing--->rebate processing--->rebate The item category is ‘B1N’ which is the same as ‘G2N’ except the field
agreements--->condition type group. “returns” which must not be checked.
Setting up rebate agreements Setting-1: Creating a rebate agreement.
Path: logisticsàsales and distributionàmaster dataàagreementsàrebate Create the billing document ‘rebate partial settlement’ (credit memo) with
agreementàVBO1-create. reference to ‘partial rebate settlement request’ by using the transaction code
Managing rebate agreements and payments. ‘VF01’.
Creating partial settlements:
In the agreement, the overview screen selects the button “pay” and enters the Note: The billing type ‘B3’ is the same as ‘G2’. Apart from that for the field
required amount to be paid. Save the agreement. “rebate settlement” we shall specify the value ‘C’ (partial settlement for a
When we save the agreement the system automatically creates the document rebate agreement).
‘partial rebate settlement request’ for the entered amount.
Go to the overview screen of ‘partial rebate settlement request’ by using the After making the payment to the customer, the field “accruals reversed” in the
transaction code ‘VA02’ where the system displays the material which is rebate agreement will be automatically updated with the amount paid to the
entered as “material for settlement” in the agreement. customer and it also calculates the “maximum payable amount” that is left to
Remove the billing block.Go to item data of that item and select the conditions pay to the customer. To see this select the condition record in the agreement
tab page where the rebate condition type is displayed twice. One is to reverse and select the icon “payment data”.
the accruals, and the other is to credit the customer with the specified amount.
Save the document. Like this, we can create partial settlements until the entire rebate amount is
paid to the customer.
The credit limit for a customer can be maintained in SAP using transaction code FD32. There
can be different credit limit for different customers. In this article, we will show how to maintain
credit limit for a customer in SAP.

Consider a scenario in which a company sets a credit limit of 10,000 for a customer. This
customer can purchase a product(s) in that company up to his credit limit. For example, a
customer places his first order worth 7,000 and this order will be successfully placed because
this order is within the credit limit. For the second time, he places an order worth 4,000. This
time the order will get blocked because he is crossing the credit limit. The customer must
purchase the product within the available credit limit.

Types of Credit Management: There are two types of Credit Management possible in SAP.
They are listed below. Lets look at what they mean and how they are different from each other.

Simple credit check Automatic credit check Simple credit check

It compares customer credit limit with the total of all open item values and current sales order.
When the credit limit exceeded system sends a warning message to a customer.
In simple credit check, the exposure of a customer at any point of time is sum of all open item

values and the sum of current sales order values. The

Open item values – Sales Order that has been saved, delivered, billed & transferred to FI, but
the payment is not received from the customer.

Current sales order – Sales order that has been saved but not delivered.

Automatic credit check: This type of credit check will provide extra credit facilities to a
customer. In this type even a customer exceeds his credit limit, he can place an order because
of good purchase history. The following are two types of automatic credit check.

Static credit limit determination Dynamic credit limit determination

Example

You have defined a credit limit of 2000 Euros for a customer in the New customer risk group. You have specified that a dynamic credit check is to be performed fo
the New customer risk category and credit group 04 when defining automatic credit control for credit control area 0001. You have also specified that the oldes
open item cannot be older than ten days. You have also stipulated that the maximum document value cannot exceed 1000 Euros in credit group 05. If a check fails
the system displays an error message informing you that the order cannot be created for all checks.

You create an order and enter two items with a value of 700 Euros. Once the billing dataset has been generated, the system displays an error message informin
you that the maximum document value has been exceeded. You cannot save the order. You enter and perform billing for an order with an item that has a value o
800 Euros. You want to create a second order for the new customer 14 days later. The customer has not made payment for the outstanding amount. The system
displays an error message informing you that the oldest open item is overdue when you enter the order. You cannot create the order
 SALES SUPPORT
a powerful tool that helps employees do their job effectively and frees them from routine administration tasks.
• A component in the SD SAP System that assists employees in sales and distribution and marketing with all
activities in the areas of business development and customer service.

• The sales support component lets the user obtain and use data relevant for sales and distribution on
customers, sales prospects, contact persons, competitors, and their products.

• Sales Support provides office-based personnel and field staff with up-to-the minute information in varying
degrees of detail. It involves primarily the promotion of sales, internal and external communication and the
assessment of competitors and their products.
Sales Support works in two ways:

• The plethora of information gathered by your sales staff is stored in the system in structured form, making it accessible to
everyone and easy to analyze. Current market data can be used for strategic product planning and enables you to take the
necessary action to promote sales.

• The wealth of data gleaned from different sources of information on customers and competitor products is made directly
available to your sales staff.

Sales support is an umbrella term that refers to any company resource that directly supports the success of the sales team. These
resources can include everything from marketing materials and sales software to sales scripts and additional sales employees.
In essence, it’s anything that helps the sales team increase its sales performance and productivity without increasing reps’
workload.

The primary goal behind developing strong sales support is to simplify, streamline, and outsource any sales rep activities that take
away from their ability to engage with prospects. There’s no one right way to do this, which is why every company’s approach to
sales support is different. The end goal, however, is the same: Give reps the time they need to engage with more clients and close
more sales.
All sales functions are designed to successfully run the four main sales support activities:

Lead generation
Product training
Customer service
Active market communication
All four of these activities can be done by just people or just material resources, but they function best when supported by both.
SALES PROMOTION AND SALES DEAL Promotions and Sales deal will
increase the Sales and we can
maintain these for specific
customer or organization or
To Create promotion and Sales deal in SAP tcode VB31 specific product.

Select the promotion type eg. 0030 and enter validity period and save. Reduce existing stock levels
For generating higher sales in a specific time, promotions can come handy specially for retailers who• sell
Boostin sales and the
physical success
stores as of
well
a company
as e-commerce. They are defined for specific period and have some favorable buying terms for the end customer. A promotion can
• Test new products on the
run on specific products. SAP provides a detailed functionality on managing this in an effective manner so that organizations can
market
maximum the opportunity of generating higher revenues as compared to the competitor in a profitable• manner.`
Catch attention during seasonal
sales
• A sales deal defines a marketing deal for a certain product and can have multiple promotions within• it.
Great
Letway to disposing
us look at howoffwe can
unsold stocks
use this functionality within SAP.A sales deal as mentioned is an actual representation of a promotion with multiple sales deals
• Discounts to promote new store
tied to a promotion. The sales deal could be unique per each product line or per each customer group etc. Example: If we want
openings
to offer customer-specific discounts in some cases and material based discounts in others. • Special pricing to generate
sales
• A sales deal in SAP is defined as a group of two or more condition types executed during the order processing for the
promotional period. The actual master data for the condition record data resides in the sales deal via the condition type
combination.

• Creae Sales Deal Enter the tcode VB21 or Navigate to the Promotion Select the Sales Deal type.

• The agreement type indicates the type of the sales deal, for example, whether it refers to a product or product line. The standard
system contains sales deal type 0020

• Deals can depend on various combinations of sales area, distributor, end customer, and material. Each sales deal can pertain to
many customers or just one. They can be national, local, or limited to a specific customer location.
• Special condition records can be allocated to a sales deal.

• Maintain the conditions for Sales Deal. To attach Promotion to the sales deal Enter the Tcode VB22 and Attach the Promotion to
the sales Deal.
Placing an order:
• Once the deals are created, a standard SAP sales order verifies if there are any existing deals that qualify the order as eligible to receive the special pricing.

• Place one order with the customer 1000 which is having the Sales Deal of 4 % discount. If a customer places an order, customer will get 4 % discount on
the value.

• Go to the conditions of the order we can see the customer discount is applied.
Campaign Determination In Sales Document
Campaign determination is one of the striking functionality in SAP CRM Marketing. There are some commonly
used functionality in Marketing such as Campaign Automation, Loyalty Management, Trade Promotion
Management, Campaign Planning Profile and several others. Campaign determination is unveiled topic in K-Shop
and so I choose it.

Campaign determination is the process for determining campaign/trade promotions in sales document e.g.
Quotations and Sales order. Campaigns/Trade Promotions are executed for promoting products with special price
or discount for limited time frame and for specific group of customers. When the sales order is created for this
customer campaign/trade Promotion gets determined automatically with conditions specified in it. Marketing
projects get determined at item level while creating or when sales document is changed. Campaign specific price
is calculated for the product. Campaign determination is controlled using condition technique. In the SAP Business
Information Warehouse effectiveness of campaign can be evaluated by calculating number of sales orders placed against certain
campaign.
There are following limitations for this functionality:
Campaigns/trade promotions cannot be assigned to an order item manually.
Campaign determination takes place in quotation and sales order only.
Campaign determination takes place at item level.
In WEB UI navigation to campaign/trade promotion within a sales document is not permitted.
2. Prerequisite
Before we switch to campaign determination below configuration settings should be available in system to run it successfully.
Connection with back end ECC system via middleware
Middleware setting for replication of transaction data, business partner, product and condition master data
Define transaction type, item category, pricing procedure, partner det. Procedure, organization det. Procedure
Basic Campaigns configuration such as define campaign type, tactics, objectives
Segmentation settings for creating target group such as segmentation basis, segmentation usage, attribute set etc.
Business role and authorization assignments.
3. Configuration Steps
3.1 ECC > Integration with Other mySAP.com Components >Customer Relationship Management > Basic Functions > Campaign
Determination > Maintain Access Sequences ECC > Integration with Other mySAP.com Components > Customer Relationship
Management >
Basic Functions > Campaign Determination > Maintain Condition Types ECC > Integration with Other mySAP.com Components >
Customer Relationship Management > Basic Functions > Campaign Determination > Maintain Determination ProcedureECC >
Integration with Other mySAP.com Components >Customer Relationship Management > Basic Functions > Campaign Determination
> Activate Campaign Determination
 SAP SD - Prices, Surcharges & Discounts
Price List Types in SAP:
In SAP there are several ways of handling prices. The first one is a simple or basic way of pricing
is Price List. In SAP Price List Types is used to create the price list of the product. The price list is
required to view the list of the price of the frequently ordered products and quantities.

The Price List is based on different groups of customers on each price list, you can enter a price
for each item and unit of measure then when a business partner who belongs to that price list
buys an item they get the right price for their product.

An organization needs to assign an appropriate price list to its customers as the prices of each
item keep changing every year so that to pick up the desired price at the time of sales order
creation.

Define price list Categories for customers: SAP Customizing Implementation Guide(IMG) >>
Sales and Distribution >> Basic Functions >> Pricing >> Set Price relevant master data fields.
Display IMG screen, select “Set Price list Types for Customers“
change view “conditions: price list categories”: overview window will come
In this window, you will see the list of all the previously defined price list types on your SAP
system
To create a New Pricing List click on New Entry Button Now create new price list categories as
per business requirements.
Type: give a code for the type of pricing list type
Description: given name of the new pricing list
 BILLING
In SAP Sales and Distribution module, billing is known as the final stage for executing business transactions.
When an order is processed and delivery is made, billing information is available at each stage of this order
processing.
Billing contains the following components −
Credit and Debit memos for return goods.Invoice creation for delivery and services.
Cancel Billing transactions.Pricing FunctionsDiscount and Rebates.
Transferring billing data to Financial Accounting FI.
Billing is closely integrated with organization structure and it can be assigned to Sales Organization, a
Distribution Channel, and a division.
Key functions in Billing −
Types of Billing , Match codes, Number RangeM, Blocking Reasons,Display billing list
Display billing due list, Billing Document Types
A billing document is created for a credit memo, debit memo, an invoice or a cancelled transaction. Each billing
document has a header and list of items under it. Billing documents are normally controlled by the billing type.
In a billing document header, it contains general data like −
Date of Billing, Payer identification number, Billing value, Currency, Partner Identification numbers like ship to
party, sold to party, etc.
Pricing Elements
In the list of items, you should maintain the following data −
Material Number,Quantity of goods,Volume and weight,Value of Individual items
Pricing element for individual items
While doing the billing processing, you create, change and delete the billing documents like − invoices, credit
memos, debit memos, etc.
Billing Processing also includes creation of billing documents as per the below reference −
To a sales order,To a delivery,To external transactions
You can refer to an entire document, individual items or partial quantities of items.
A Billing document can be created in the following ways −
When a system processes a billing due list automatically as a background task.
By manually processing from a worklist. You can also create a billing document explicitly
Creation of Billing Documents Use T-Code: VF01 Go to Logistics → Sales and Distribution → Billing → Billing
Usage of assortments (transaction code ( WSO1 ) ) in our business
Assortment modules for value contracts are maintained in the master data for products. You can
define a validity period for each material in the assortment module. When you create a release
order, the system checks the respective entry date against the validity period.
If you have not made any entries in the document, all the materials defined in sales can be
released unless there are any other restrictions in copying control at item level
Assortment modules support the assortment strategy you have planned.

Each module contains an assortment which applies to all stores and which only becomes store-
specific after a suitable assignment has been made.
Special form of the traditional module types is the value contract module.

The value contract module is generally only used to group together materials for value contracts,
but it can be used exactly like a standard module in assortment functions.

The Procedure:
Enter a module type. Promotion modules cannot be created in this transaction; they can only be
created from within the promotion itself.
Profile modules are created directly during integrated material maintenance and can only be edited
here to a limited extent. If you wish to maintain a local module for a single plant, enter the plant
number in the 'local assortment' field.
An assortment module is a grouping of materials, which make up its items. It is assigned to
assortments. It is valid for a certain period of time and has a maximum assortment priority.
Assortment modules belong to different module types.

The value contract module is a special form; it can be used not only in assortment functions but
also to group materials into value contracts.
Copy Control is defined as a process in which important transactions in a sales document are copied from
one document to other. It consists of routines, which determine the system on how the data is to be copied from
a source document to a target document. A SAP system contains a number of these routines and you can also
create additional routines to meet the business requirements. To create a new routine, you can use an existing
sales document as a reference.
To find Copy Controls in SAP system: These controls are created and configured under IMG and can be found
at the following menu path −
SPRO → IMG → Sales and Distribution → Sales → Maintain copy control for sales documents.
SPRO → IMG → Sales and Distribution → Shipping → Specify copy control for deliveries.
SPRO → IMG → Sales and Distribution → Billing → Billing Documents → Maintain copy control for billing.
You can also use the following T-Codes to find copy controls in a system −
VTAA − This control is used for copying from sales order to sales order
VTLA − This control is used control for copying from sales order to delivery
VTFL − This control is used control for copying from delivery to billing doc
VTFF − This control is used control for copying from billing doc to billing doc
VTAF − This control is used control for copying from billing doc to sales order
VTFA − This control is used control for copying from sales order to billing doc
You can setup Copy controls in a system at three different levels in a Sales Order −
Header level. Item level.
Schedule line level (Only relevant, when you copy from a sales order to sales order or from billing doc to sales
order). The Header Copy Control routine is required when you copy data from header of a source document to
the header of a target document.
T-Code: VTLA to check copy control between sales order and delivery.
Display View Header: You can check the source of a routing by selecting the routine and press F4. To open it in
the ABAP editor, you can press F5. Copy controls for an item can be checked by a double click on the item
folder and choosing an item category and then clicking on the Display view item overview screen. You can
then use the F1 key to find out how each routine is employed. The target documents will be assigned an
updated reference status in the copied item.
The following types of status can be possible for an item −
Not relevant − it tells if an item is not relevant for copying.
Not referenced − it tells an item has not been copied.
# T Code Transaction Description Application Application Description 31 VF03 Display Billing Document SD-BIL Billing
Component
32 XK03 Display vendor (centrally) FI-AP-AP Basic Functions
1 FBL1N Vendor Line Items FI-GL-IS Information System
33 F-44 Clear Vendor FI Financial Accounting
2 ME21N Create Purchase Order MM-PUR Purchasing
34 XK02 Change vendor (centrally) FI-AP-AP Basic Functions
3 ME23N Display Purchase Order MM-PUR Purchasing
35 FB02 Change Document FI Financial Accounting
4 FBL5N Customer Line Items FI-GL-IS Information System
36 FK03 Display Vendor (Accounting) FI Financial Accounting
5 VA02 Change Sales Order SD-SLS Sales
37 MIR4 Call MIRO – Change Status MM-IV Invoice Verification
6 FBL3N G/L Account Line Items FI-GL-IS Information System
38 F-02 Enter G/L Account Posting FI Financial Accounting
7 VA01 Create Sales Order SD-SLS Sales
39 FBZ0 Display/Edit Payment FI Financial Accounting
8 F110 Parameters for Automatic Payment FI Financial Accounting Proposal

40 MB52 List
9 FS10N Balance Display FI Financial Accounting of Warehouse Stocks on
MM-IM Inventory Management
Hand
10 FB01 Post Document FI Financial Accounting
11 KSB1 Cost Centers: Actual Line Items CO Controlling What the SAP T-code letters are telling us:
• t-code Starts With Module
12 MIRO Enter Invoice MM-IV Invoice Verification • F FINANCIAL
• FB SHARED FINANCIAL TRANSACTIONS (SHARED BETWEEN
13 FB1S Clear G/L Account FI-GL General Ledger Accounting AP AR ASSETS GL)
• FK FINANCIAL VENDOR MASTER
14 ME22N Change Purchase Order MM-PUR Purchasing
• FS LEDGER ACCOUNTS
15 MB51 Material Doc. List MM-IM Inventory Management • M MATERIALS MANAGEMENT
• MB GOODS RECEIPT – INVENTORY MANAGEMENT
16 ME2L Purchase Orders by Vendor MM-PUR Purchasing • ME PURCHASING
• ME1 PURCHASE REQUISITION
17 MD04 Display Stock/Requirements Situation PP-MRP-BD Master Data
• ME2 PURCHASE ORDER
18 VA03 Display Sales Order SD-SLS Sales • MK MATERIAL VENDOR MASTER
• MM MATERIAL MASTER
19 MM03 Display Material & LO-MD-MM Material Master • MR MM INVOICE VERIFICATION
• V SALES AND DISTRIBUTION
20 FB05 Post with Clearing FI Financial Accounting
• VA SALES ORDERS
21 VF01 Create Billing Document SD-BIL Billing • VF BILLING
• XD CENTRAL CUSTOMER MASTER
22 MMBE Stock Overview LO-MD-MM Material Master • XK CENTRAL VENDOR MASTER
23 F-03 Clear G/L Account FI Financial Accounting
24 MM02 Change Material & LO-MD-MM Material Master
25 MIGO Goods movement MM-IM Inventory Management
26 FB60 Enter Incoming Invoices FI-GL-GL Basic Functions
27 MM01 Create Material & LO-MD-MM Material Master
28 AW01N Asset Explorer FI-AA-AA Basic Functions
29 XD02 Change Customer (Centrally) FI-AR-AR Basic Functions
30 VF02 Change Billing Document SD-BIL Billing

All important aspects / t codes etc . given in Note page below

LSMW Legacy system migration work bench is a recording tool witch cam record all transaction and fields and uploading the
data from legacy to SAP. For this go to in transaction bar and maintain the T-CODE “LSMW”.

Here specific the project name, sub project, and object. Then we create the recording name for this go to main menu “GOTO
àclick RECORDING. Hear specify the recording name, description and specify transaction code witch transaction you want to
recording. Then save the recording. In LSMW we have 14 steps is there to process of LSMW those

1) Maintain object attribute.

2) Maintain source structure.
3) Maintain source fields.
4) Maintain relation.
5) Maintain field mapping and conversion rule.
6) Maintain fixed values and user define routines
7) Specify data.
8) Assign data.
9) Reade data.
10) Display read data.
11) Convert data.
12) Assign convert data.
13) Create batch input session record method.
14) Run batch input session record method.
These are 14 steps in LSMW.
1) maintain object attribute:

SAP LSMW stands for Legacy System Migration Workbench), it is a tool

that supports to transfer the data from non SAP systems to SAP R/3. The
data can be transferred to SAP system by using batch input, direct input,
Intermediate Document (IDOCs) and BAPIs (Business Application
Programming Interface).

In SAP system the implementation data from non non SAP system
(Legacy System) to be transferred to the SAP system. It is also called as
data migration and the important that used for data migration are BDC
and LSMW.
A Relationship Between Logistics & Marketing
At first glance, logistics and marketing might
seem to be diametrically opposed. Logistics
deals with the nuts and bolts of handling and
delivering products. Marketing, on the other
hand, is a combination of creative activities and
the detailed analysis that backs them up.
However, these two departments within any
company have a symbiotic relationship. As
clients, for example, routinely expect
production and shipping to be fast and efficient,
logistics is an increasingly important
component of marketing.
Basic functions of Logistics Execution in end-
to-end Supply Chain Processes
Logistics refers to the part of the company that
moves around goods. The term is sometimes used to
refer to the trucking industry, but it's much broader.
Logistics cover everything from receiving goods from
suppliers overseas, getting them to a U.S. entry point,
packaging them for domestic sale, warehousing them
and shipping them to stores or fulfilling online orders.
Companies can handle logistics in-house or can use
outside third-party logistics providers, sometimes
referred to as 3PL.
The importance of logistics becomes obvious as soon
as there is a problem anywhere in the logistics chain,
such as when:
• a shipment of supplies is delayed,
• inventory levels drop to zero,
• inventory levels increase beyond warehouse
capacity,
• outbound shipments get bogged down.
Any of these situations not only hurt sales, they can
drive a profitable business quickly out of business.
Supply Chain Management vs. Logistics:
• Supply chain management involves the coordination of an entire network of
activities, including: partner management, sourcing, manufacturing, production
and assembly, storage, distribution and the final delivery of goods. Logistics
supports supply chain management—it pertains to one part of the supply chain,
where SCM involves the whole supply chain. Logistics, also known as
distribution, involves managing the flow of inventory from supplier to final
delivery to the customer.

• From an operational point of view, it is important that managers understand

where job responsibilities lie—with logistics or supply chain management—for
effective planning, oversight and job assignment.

Logistics Vs Marketing
• While logistics is concerned with what it is going to take for the company to
actually physically create a product, marketing is concerned with how a product
will satisfy a consumer. Marketing develops an idea for a product; the idea then
goes over to logistics and logistics produces the product or service; then, the
product goes back over to marketing for distribution to customers. If a business
is creating a strategy, logistics decides the who's, what's, where's and when's,
so that the strategy may be put into effect. Marketing creates strategies, but
does not necessarily implement the strategies it creates.
Difference between Logistics and SD Module
SD and Logistics are both the part of Supply Chain Management. Both the concepts differ just in the
areas of Sales
Logistics: is nothing but the process of Planning, Controlling, Procurement, Maintenance,
Distribution of Material, Managing activities that are involved with Goods or Services is called as
Logistics.. in SAP u can clearly see the difference while u check the img>enterprise structure >
define> the tree view is clearly distinguished..
Sales & Distribution: is nothing but the here all the activities which are involved with the sales of the
materials, say basically all the sales activities are covered in here.. here too u can refer to the tree
view of img..By seeing the activities involved in each of the Logistics and SD you can clearly make
the difference between the both

Sales and Marketing — Sales and marketing are two business functions within an
organization -- they both impact lead generation and revenue. The term, sales, refers ...
The difference between sales and marketing ; Sales is the process of selling goods and services. It involves
convincing potential customers to buy from your company. The convincing can be through various means such
as explaining your product's benefits, offering discounts or making your product more attractive than that of your
competitors. Some common sales generation methods include making cold calls, holding one-on-one meeting
with business leads, participating in trade fairs and promotional events and cross selling (selling another product
to an existing customer).Sales is the starting point of a contract between a business and its customers. A
company often looks to retain its customer-base by nurturing a positive relationship with its customers.
While marketing is about building awareness about a brand and organization, sales turn that viewership
into profits by converting the potential customers into actual customers.
The sales process takes an individualistic, customer-centric, one-to-one approach, while marketing is media-
driven and targets the entire segment. ·
Marketing tends to identify the needs, wants and demands of the customers, so as to satisfy
them profitably. Conversely, sales is about pushing the company’s products and services onto the
• Marketing and sales are critical components of running a business,
• A lot of business organisationssuse ineffective and inefficient marketing and sales
strategies.
• Successful marketing and sales programmes grow organically and evolve with your
customer’s demands.
• Marketing strategies are commonly associated with endeavors such as branding,
selling, advertising and many other functions.

Hybris Marketing. it is an application based on HANA

which provides central access to all customer-related
information.

it is a HANA-based program that provides central access

to all customer-related information. it can be deployed as
an on-premise or cloud-based solution.It allows the
organization to run marketing functions and provides a
variety of dashboards and analytics to understand and
improve customer interactions.
 Sales and Marketing

Macleod (1994) contends that ‘pleasing the customer, is a tall order, as all customers are
different with varying interests, ideas and demands’.

Telling is not selling: communicate with the customer to ascertain their needs, and
personalize the sales pitch to take their expectations into account and demonstrate the
benefits of the product or service to them.

Selling techniques: conversation selling, over-selling, related selling, suggestion selling, selling up, silent
selling. etc. etc/
Personal selling: selling – preparation, sales play, the follow-up.=
What motivates customers to buy?: customer’s buy for many different reasons.
Staff communication, rules of selling, nature of persuasion:

SAP CRM is a main component in this SAP Business Suite.SAP CRM is focused on Customer or Partners. The aim of SAP
CRM is to give 360 View for each kind of Partners by staying connected to Customers and answering the customers
requirement with the right services or sales.
SAP Business Suite component
• SAP PLM - Product Lifecycle Management – focus on Material
• SAP SCM - Supply Chain Management – focus on Supply chain
• SAP CRM - Customer Relationship Management – focus on Customer
• SAP SRM - Supplier Relationship Management – focus on Vendor
• SAP ERP - Enterprise Resource Planning
SAP CRM Marketing is the main component of SAP CRM Modules?. It offers:

Lead Management
Compaing Management
Customer Segmentation
Trade Promotion Management
E-Marketing
Marketing Analytics
SAP CRM Services
SAP CRM Services begins with answering Customer’s query.
It covers also billing and confirmation.
The main functionnality of SAP CRM Services are:
• The first rule of marketing is always about knowing your consumers.
• The location of the bar and its crowd is a crucial factor in determining where consumers feel
comfortable to eat, drink, socialise and stay for longer periods.
• Identify what you sell best food, drink, music or the atmosphere, you must then find out about
the market place.
• Identify your customers needs when they come to your bar.
• Identify the local competition for their disposable income
• Deciding on what products and services your bar can promote better than others to give your
business ‘a competitive advantage’.
• Ensure that people know about you through advertising, publicity and sales promotions.
• If you also want to generate more money from existing guests train your management and staff
to use selling skills and techniques.
• Bars must keep a tight control on costs, portions and profit margins.
• The sustainability of any bar is based on its ability to generate profits, consider the formulation
of a proper costing structure (updated regularly) for your bar which focuses in detail on the
individual and collective cost and sales prices plus the gross profit margins achieved by your bar.
• Bars can adopt loyalty schemes and rewards programs which include the use of
coupons, social media sites with third apps and monitoring tools, geolocation platforms,
QR codes to strategically bridge offline and online media about your bar and its products and
services to actively encourage local buying behaviour.
‘