Chapter 10 SAP
Examples of Distribution Channels
Wholesale Retail Internet Direct
SAP ERP Sales and Distribution
A complete sales management solution. Part of the logistics module that supports customer, starting form inquiries, quotes and sales order to customer billing. Allows companies to input customer sale price, check open orders, forecast sales etc,.
The last two processes in OTC are executed by
Account Receivables Staff
PreSales Activity STEP1
Activities a company used to ENGAGE a customer before the actual sale occurs. Establish or manage a relationship Provide Information
OTC Process has billing when
After the goods have been sent to the customer.
Customer Material Information Record
Approach that allows the seller to make special notes and instructions for a customer as it relates to a specific material. - cross reference Keep our Number/Name Can enter THEIR Number/Name
Pricing - Conditions
Automatically determined based on sales area, doc pricing procedure and customer pricing procedure. Price, discounts, surcharges, rebates.
Determine for each sales order
Availability Check Delivery Schedule Shipping Point Transfer to Planning Pricing Conditions Credit Limit Check
Material Master Record for Pen Inc
Basic Data Views Sales Org Data Views Plant Data Views Accounting Data Views
Customers may be
Businesses- Wholesale End Consumer- Retail
Plant
Central logistical structure where materials are managed. Can be a prod. facility, distribution center or where we store products.
Org. Structure for Distribution
Client Company Code Plant Storage Location Shipping Point
Organizational Structures of Sales Functions
Client Company Code Sales Area Sales Org Distribution Channel Division
Sales Area View
Combo of Sales Org, Distr. Channel and Division. SO assigned to CC, Division and DC are then assigned to SO. Sales offices are assigned to the sales areas. Employees are assigned to Sales Offices Created at the Sales Area Level, consist of views related to Shipping, Billing Doc, and Partner Functions.
Sales Area
Combo of Sales org, Distr Channel, and Division Defines the distr channel a sales org uses to sell from a certain division Dictates the customer master data view
Credit Management
Company's process to verify and validate credit limits, extension of cred, and terms and conditions with a customer
Condition Master Record
Conditions have to do with money. Includes prices, surcharges, discounts, freights and taxes. Dependent on various data. Created at the combined org. level of a sales org and distribution channel. BECAUSE diff distribution channels have diff pricing.
Quotation
Document which legally binding offer to sell and deliver a specified quantity for a specified amount within a specified time frame. Valid for a specific period. Valid for 30 Days
Two way to track Presales Activity NOT A REQUIRED STEP
Create an Inquiry Quotation
Accounting View
Created at Company Code Level consist of views of fields related to Acct Mgmt, Payment Transactions, Corresponsdence, and Insurance. Valid for ONLY the CC they were created for.
Gen Data View CMR
Created at client level, consist of views related to address, control, payment, transactions, marketing, unloading points, export data, contact persons. Information relevent to all organizational levels CC's and Sales Areas use Gen Data Views More than one view - grouping of fields
Customer Master Record
Created for each customer Pen Inc represents B2B Customer to Vendor Identified by a unique customer number Name Address Payment Terms
Sales Orders
Creation and mgmt of the agreement to sell to the customer
Distribution Process begins with
Creation of a delivery note attached t o sales order.
Sales Order Electronic Document includes
Customer Info Material/service Ordered Quantity Ordered Pricing Discount Surcharges Taxes Delivery Dates Delivery Quantities Shipping Info Billing Info
Master Data Record Sales Process (SD)
Customer MR Material MR Customer-Material Information R Condition MR Output MR
What represents demand
Customer Orders Integrated in planning, considered when MRP is executed.
Data on a material defined for 1 specific customer in CMIR includes
Customer Specific Material Number Customer Specific Material Description Customer Specific Deliveries/Delivery Tolerances
CSM Description
Customer knows it meets their specifications and quality requirements
Client
Highest level of org
Line Item Sales Doc
Data about specific product or service Material Number, quantity, conditions w/ each line.
Head Sales Doc
Data relevant to entire sales order Customer, Shipping, Billing and Account, Conditions
Route Determination
Define the transit time of the delivery. Controlled by address of shipping point, address of ship to location and shipping conditions and transportation group.
Shipping and Transportation
Delivery Process involving the movement goods and transfer of ownership to fulfill customer order
SD manages orders through
Delivery and receipt of payment from the customer.
Availability to Promise Dates
Delivery dates agreed upon between customer and business
Schedule Line Sales Doc
Delivery quantities, dates for each line item. Used for partial deliveries.
Backward Scheduling
Determine if the customer specified delivery date could be met. Start with date and work back to determine the date we need to initiate our shipping process.
Sales Order Entry STEP2
Entry of a sales order, or conversion of a quotation or inquiry. When a company records the customer's request to purchase. TRIGGER to put in motion the subsequent processes.
ACheck
First of the tasks in sales order process, addresses distribution, logistics, of getting to customers on time. Determine material availability Current inventory,planned orders, prod order, p req's, purchase orders. All sources outgoing/incoming material to determine stock availability for a specific quantity on a specific date
Sales and Operations Planning
Flexible forecasting and planning tool. Plan a company's sales and production processes linking demand with supply
CMR Structure
General Data View Accounting View Sales Area View
Delivery Note Creation STEP3
Group of documents that ttrigger and control sub tasks in delivery process.
Sales and Distribution Process OTC
Grouping of tasks enabling a company to sell, deliver and receive payment in an EFFICIENT AND EFFECTIVE manner.
Sales Doc's 3 Primary Area
Header Line Item Schedule Line
Shipping Point
Highest level of org. unit of shipping that controls our shipping activities. Each outbound delivery is processed by one ship point. Can be a loading dock, mail depot, rail depot, group of employees. Physical Location and is assigned to a plan.
Sales Organization
Highest summation level for Sales and Distr Includes all items of an order, delivery, billing document Groups the enterpise accounting to requirements of SD RESPONSIBLE FOR distribution of goods and services, negotiating pricing, product liability, and rights of recource on returned/damaged products
Company Code
Independent legal accounting unit Sales revenue is captured and reported here
Billing
Invoicing of our customers for their purchases
Distribution
Logistics of planning and delivering to the customer.
SD is tightly integrated with
ME and MM.
Distribution Channel
Means through which salable materials or services reach our customers Several can be assigned to a sales org. Represents a company's strategies for distribution to customers
Sales Organization and Sales People are responsible for
Order Placement
What are the first and last steps of the SD process
Order to Cash
Sales Orders can also trigger
Planned Orders and Purchase Requisitions due to sd integration with planning/mrp
Transactional data is included in
Planning Cycle
SDP OTC Steps
Pre Sales Activities Sales Order Entry Delivery Note Pick Pack Post Goods Issue Invoice Customer Post Customer Payment
Sales Support
Pre sales activities, creation and communication of customer contacts, inquiries, and quotations
Sales Process
Process of selling goods / services to custoers.
Create Sales Order is the Mirror image of what in purchasing
Purchase Order
Delivery Schedule
Requested delivery date for the order or each line item
Additional views for the OTC process that support the sales function are
Sales Price - conditions How material is sold - Distribution channel How it is shipped
Mirror image FOR SALES PROCESS of Goods Receipt
Shipment - Shipment
CS Deliveries
Special arrangements and requirements on the time of day for deliveries, which door, or specific contact people
CSM Number
Store the material number used by customer in the cmir Simplifies ordering
Storage Location
Subdivision of a plant where we manage the QUANTITY of stock.
Sales Order is made up of
Transactional Data; which the sd processes create a large amount of
Transfer to Planning
Transfer of requirements to MRP ensures our CIR taken into consideration when MRP is executed.
T/F ME MM AND SD represent the heart of the Make, Buy
True, Make Buy Sell
T/F Quotations may be valid for longer
True; Depends on Request for Proposal or Request for Quotation
T/F A shipping point can be assigned to more than one plant
True; as long as those plants are in a physical proximity to one another.
Division
Used to group materials and services, division of our goods/services. Can represent a product group, can conduct analysis and reporting
What is the trigger that initates the Sales Process
Vendor ID / Create Sales Order. Customer order initiates the process to schedule and plan the delivery. Statement of Customer Needs
Mirror image FOR SALES PROCESS of PO Monitoring
Vendor Sales Order Process / Schedule , Pick , Pack , Post Goods Issue
Sales Orders can originate form such documents:
Via Phone, Internet, Email Existing Contract Quotation/Inquiry
Post Goods Issue on the selling side represents
When ownership is transferred to the customer.
During SD Transactions, Sales Area allows SAP to
access various master data such as customer master data, material master data, prices and discounts
SD Consists of
all master data, system configuration, and transactions to complete OTC process
Credit Limit Check
allows companies to manage their credit exposure and risk through the establishment of credit limits of their customers.
Regardless of source of sales order
an electronic document is created
Sales area are what triangles
bottom triangles manage track and assign people to specific sales activties
Sales Information System
captures historical sales data, which is used for the basis for forecasts and strategy development.
Inquiry
customer's / potential customer request for information no obligation to purchase Provides answers to questions. VALID FROM AND VALID TO date
CS Delivery Tolerances
delivery over quantity or under quantity that is acceptable to the customer without pre-authorization
Shipping Point is determined for
each line item within the order based on shipping plant, conditions and loading group
SAP Pricing functio nprovides
flexibility in how we price our products and how we define the order in which pricing is selected.
Sales, production and SC targets are set by
historical, existing and estimated future data.
Output Record
how we communicate sales and distribution relevant information with out customers. Control creation of those documents.
In SD, A plant represents
location from which materials and services are distributed and corresponds to a distribution center where relevant stock and inventory is kept.
Sales and Distribution allow an organization to
maintain prices of products for customers and provides sales support to customers.
After the sales order is place the sales org
monitors the sales order progress and manages customer relations. Final fulfillment and distribution are not sales org. responsibility.
Routes are influenced by
number of stops, distance, primary and secondary roads, speed limits.
In Business 2 Business, Vendor to Customer intention is
of both parties to establish a long term and value adding experience.
Data on the delivery and individual delivery tolerances that are agreed upon can be check and transferred to
sales order item
During Sales Order the system must determine
shipping point from which each material will be shipped and the route the material will take
During Order Entry, items can be entered by
specifying the material number used by the customer. or customer material number in the order view of sales order
If materials are not available on the date they are needed
system will propose a delivery schedule of items based upon what will be available on the date requested.
OTC process inclludes
the goods movement, shipping, and logistics functions of order fulfillment.
Delivery Timeline
used when determining material availability and the ATP date. Date we can promise material will be delivered if date requested is not possible
Forward Scheduling
used when we Determine that we cant meet ourcustomers requested delivery date.
