Sales and distribution

Sales and Distribution Sales and Distribution (V1201) Page 2 At the completion of this workshop you will be able to: Understand the Master data associated with the Sales and Distribution process Understand the Organisational Units involved in the Sales and Distribution Describe the Business Process for sales order processing in the SAP ERP system. Create a customer order. Trigger delivery of the sales order Pick and post goods issue. Ship Goods Invoice Customer Understand the role of the Document Flow Scenario A customer contacts your company for a quote for bikes you sell. Shortly after issuing the quote a Purchase Order arrives from the Customer for the Material. You will then create a Sales Order and commence the Delivery process. Once the goods have been issued you will then Invoice the Customer. Once the Customer sends payment you will commence the Accounts Receivable process. Sales and Distribution (V1201) Page 3 Organisational Units Defining your organizational structure in SAP System is an important step. It requires thorough analysis of how your organization wants to run your business. The Organisational structure in SAP is made of organisational units. Some Organizational Units are common to many processes in the SAP system. These are Client, Company Code and Plant. The Sales and Distribution module uses some organizational units that are unique to the sales and distribution processes. These include; Sales Organisation, Distribution Channel, Division and Shipping Point.  Company Code – is an independent accounting unit. Balance sheets and Profit & Loss Statements, required by law, are created at the Company Code level.  Sales Organisation – is an organisational unit within logistics, which structures the company according to its sales requirements. A Sales Organisation is responsible for the Sale and Distribution of goods and services. Each business transaction is processed within a Sales Organisation. It is responsible for distributing goods and services, negotiating conditions of a sale. It is the level to which you sum up sales figures for reporting and analysis. The Sales Organisation must be specified in all sales documents. It is therefore relevant for all basic functions of SD (such as pricing, availability, etc.).  Distribution Channel - represents the channel through which sold materials or services reach Customers. Typical Distribution Channels include wholesale, retail and direct sales. Within a Sales Organisation a Customer can be supplied through several Distribution Channels. In addition, the Material Master data relevant for sales, such as prices, minimum order quantity, minimum quantity to be delivered and delivering Plant, can differ for each Sales Organisation and Distribution Channel.  Division - used to represent a product line. In Sales and Distribution, the Division allows you to make customer-specific agreements such as: partial deliveries, pricing agreements, special payment terms. At least one Division must be defined in the SD module.  Sales Area - a specific combination of Sales Organisation, Distribution Channel, and Division.  Plant - a manufacturing facility, distribution center, or office. A location that stores inventory or renders services.  Storage location - allows the differentiation of material stocks within a plant.  Warehouse - organizational divisions of a plant for the purpose of maintaining materials that are stored in different places.  Shipping point - a fixed location that carries out shipping activities. Each delivery is processed by only one shipping point. Sales and Distribution (V1201) Page 4 The organizational units involved in the scenario are displayed below: Delivery Structure of GBI MI00 Miami . . . Plant Plant GBI US00 Sales organization Sales organisation UE00 US East Shipping point Shipping point 1 2 3 4 5 6 7 8 9 10 11 12 1 3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 MI00 Miami Company code Company Code UE00 US East WH Wholesale IN Internet US00 Global Bike Inc Sales organization Sales Organization Company code Division Division Distribution Distribution Channel BI Bikes BI Bikes Sales and Distribution (V1201) Page 5 Master Data in Sales and Distribution The Master Data that is used in Sales and Distribution include:  Customer Master  Material Master  Customer Material Information Record  Output Master  Condition Master data in Pricing Customer Master Data on customers is important for both the accounting department and the sales and distribution department. In order to avoid data redundancy, accounting data and sales and distribution data is stored in one master record, the customer master record. The customer master groups data into categories: general data, sales area data, and company code data. It includes all data needed for business transactions and correspondence with the customer. This includes address data, shipping data, sales data, and data for invoice creation. Customer Master Data Relevant for SD and Accounting Valid for all organisational units General Data Sales Area Data Relevant for SD Valid for all Sales organisation, Distribution channel and Division Relevant Accounting Valid for Company code Company Code Data . with the Sales and Distribution process Understand the Organisational Units involved in the Sales and Distribution Describe the Business Process for sales. Code and Plant. The Sales and Distribution module uses some organizational units that are unique to the sales and distribution processes. These include; Sales