Terms in SAP Sales and Distribution

Responsible for:

• Distribution of goods and services
• Negotiating Sales Conditions
• Product Liability and rights of recourse
• A sales organization is uniquely assigned to a company code
• Master data’s are separately maintained for a sales organization
• All items in the Sales and Distribution document belong to a sales organization

Distribution Channel:

Means through which products and services reach the customer

A distribution channel:

• Defines responsibilities
• Helps in achieve flexible pricing
• Differentiate Sales statistics

Division:

• A division is used to group products and services.

• A division represents a product line.

Sales Area:

A Sales area is a combination of

• Sales organization
• Distribution Channel
• Division

Each Sales and distribution document is assigned exactly to one sales area.

A sales area can belong to only one company code.

Plant and Storage Location:

• A Plant is a location where stock is maintained

• Plant and storage location are used by all logistic area of R/3 System

• A Plant is uniquely assigned to a company code

Shipping point:

• Shipping point is the highest level of organizational unit in shipping

• Each outbound delivery is processed by one shipping point

• Shipping points are assigned to a plant

• More than one shipping point can be assigned to a plant

A standard order in SAP contains:

• Customer and material info
• Pricing conditions
• Delivery dates and quantities
• Shipping info
• Billing Info

Inventory sourcing in SAP is taken care by

• Availability check

Shipping in SAP supports

• Outbound delivery creation
• Picking
• Packing
• Post Goods Issue

Billing in SAP supports

• Creating invoices for products and services

• Creating credit and debit memo

• Cancel previously posted billing documents

• Automatically transferring billing documents to accounting

When a billing document is created for a sales order we

• Credit the sales revenue account

• Debit the customer receivables account

Sales Document

A sales document is grouped into three structures

• Header

• Item

• Schedule Line

Outbound delivery

A delivery document is grouped into two structures

• Header

• Item

Several orders can be grouped into same outbound delivery if they have same

• Shipping point

• Delivery date

• Ship-to- address

Picking

• A transfer order is created for an outbound delivery

• A transfer order is created for a warehouse number

Post Goods Issue

When PGI is done the system

• Updates the quantity in inventory management and delivery requirements in materials planning

• Generates additional documents for accounting

• Adds the delivery to the billing due list

• Updates status in sales documents

Billing

We can group deliveries into single billing document if the deliveries have same

• Billing date

• Payer

• Destination Country

The effects of billing are

• Debit on the customer receivables account and credit on sales revenue account is created

• Sales information system

• Sales statistics is updated

Master data in SAP

SAP SD has got the following main masters:

• Customer master

• Material master

• Condition master

• Output master

• Customer material information master

Material Master is maintained in different views and important views of sales and distribution are

• Basic data 1

• Sales Org 1

• Sales Org 2

• Sales : Gen/Plant

• Foreign Trade

• Sales text

Sales document in Sales and distribution mainly controls:

• Number range

• Item No increment

• Reference mandatory

• Item division

• Read info record

• Document pricing procedure

• Incomplete messages

• Alternative sales documents

• Delivery block

• Billing block

• Immediate delivery

• Delivery type

• Billing type

• Proposed delivery date

• Lead time for delivery

• Proposed pricing date

Plant determination in Sales and distribution:

To determine the plant in an order the system checks the master in the following order:

a) Customer material info. record of the sold-to –party

b) Customer master record of the ship-to-party

c) Material master record of the material

Shipping point determination

The following rule is used in determining shipping point in a sales order :

Plant + Shipping condition (Sold-to-Party) + Loading group Shipping point

Delivery scheduling:

As name denotes delivery scheduling is scheduling delivery for an order and it carries the following important dates:

• Material availability date
• Transportation planning date
• Loading date
• Goods Issue date
• Delivery date

Availability Check in SAP:

• Availability check is carried out at item level for a plant

• Availability check is done on the material availability date

• If material availability date is in the past the forward scheduling is done, if not backward scheduling is done.

Schedule line category mainly controls:

• Delivery Block
• Movement type
• Item relevant for delivery
• Req/Assembly
• Availability
• Product Allocation

Copy Control:

Copy control is normally set for

• Header
• Item
• Schedule line levels

To control copying procedure we have

• Data transfer routines
• Copying requirements
• Switches

Pricing Procedure determination:

Pricing is an important component in SAP-SD. Once an order is entered taking into consideration some major factors, the pricing procedure for the particular order is determined.

Define Pricing Procedures

The pricing procedure defines the conditions permitted for a document and the sequence in which the system takes these conditions into account during pricing.

A standard pricing procedure is defined in the standard SAP system. It contains conditions most commonly used. These include material prices, discounts, and surcharges, such as freight, or tax.

SAP Recommendation

· Define your own pricing procedures which contain only those condition types which you use. Otherwise, the system makes un neccessary accesses to conditions.

· Do not change the pricing procedures contained in the standard SAP R/3 System.

Actions

1. Create new pricing procedures by copying a similar pricing procedure.

• Specify a key with up to 6 characters and a description.

• For a procedure, specify the condition types in the sequence of their usage.

Maintain the lines of the pricing procedure

2. Afterwards define the customer determination procedures for determining the procedure.

3. Define the document pricing procedures for determining the procedure.

4. Assign the procedure to the sales document types and billing types.

5. To determine the procedure, define the allowed combinations of:

• Sales area
• Customer pricing procedure
• Document pricing procedure
• Pricing procedure

Shipping:

The basis for shipping is delivery.

Delivery document controls the following in deliveries

• Number range
• Item no increment
• Storage location rule
• Route determination
• Text determination
• Delivery split
• Gen. packing material / item
• Order required

Delivery item category controls:

• Check min delivery
• Availability check
• Relevant for picking
• Storage location required
• Determine storage location
• Automatic batch determination
• Text determination procedure

Billing:

Billing is the last phase in the SD process .Billing is the phase where the major integration of SD and FI Module happens.

Billing document has got the following structure:

• Header

• Item

Billing documents mainly control:

• No. range
• Posting block (Controls posting to accounting)
• Relevant for rebate
• Account determination procedure
• Account determination recon account
• Account determination pay.cards
• Output determination procedure