Hands on experience in configuration of SD OTC, Pricing, Deliveries, Inventory & Batch Management,

Shipments, Shipment Costs, Invoicing, Outputs, Purchase Orders, Integration with Finance &
Intercompany processing areas.
Setting up of Org structures, Pricing Procedures, Account Determination, Output determination, text
determination, Credit Management, SD Documents, Item categories in SAP Sales & Distributions
Module.
Knowledge or Experience in Delivery and Shipping, Billing Documents, Copying, and Account
determination.
3 or more full cycle implementations including: Scoping and Planning, Process Design, Configuration,
Testing, Deployment, and Post Go-Live Support.
Experience using SAP implementation tools such as Best Practices, ASAP Methodology.
Desire to learn new modules and work on leading edge projects.
Business process analysis and redesign experience: strong business analysis skills; process mapping;
business process redesign and implementation.
Systems implementation skills: requirements/process analysis, conceptual and detailed design,
configuration, testing, training, change management, support
The role will work primarily in the processes of requirement collection and analysis, converting
business requirements into application specification or development specification, system
implementation/configuration, development support, migration concept preparation and execution,
internal testing, and user training.
Problem/incident management and change management involvement to ensure new implementation
maintaining the integrity of existing functionality within the environment.
Analyzes customers' business requirements and application objectives, develops an application design
in products to meet customers' needs.

Sales refer to the exchange of goods or services for an

amount of money or its equivalent in kind. Selling helps an
organization achieve its business goals. Thus, managing
sales in an organization is a critical activity. A sales
manager needs to ensure that the salespeople are
motivated to perform the selling function in a way that will
help the organization attain its goals.
The sales team continuously monitors the changes taking
place in the external environment regarding competitors,
customers, government and other regulatory agencies,
advances in technology, and industry trends. This provides
the sales personnel with vital information regarding trends
in organizational sales, product development, and
budgets.
By offering the management vital inputs pertaining to such
information, the sales team helps the management to
develop plans regarding sales, production, and design.
Over the years, substantial changes have taken place in
the selling environment, leading to changes in the sales

function.
The trends that have shaped the sales function include shorter product life cycles, longer
and more complex sales cycles, reduced customer loyalty, intense competition among
manufacturing firms, rising customer expectations, increasing buyer expertise, electronic
revolution in communications, and the entry of women into the sales force.
In addition to having a strong sales function, companies should also have efficient
distribution channels to make the products available to the end consumer. Management of
distribution channels involves efficient channel design, conflict management and
implementation of sophisticated channel information systems which will enhance the
process of making the products available to the end consumer in a timely manner.
This book, Sales and Distribution Management provides an overview of the sales and
distribution function. It discusses various aspects of the sales function ranging from various
sales organization structures to the role of the sales manager in improving sales by hiring,
training, motivating and leading the sales force. The second half of the book deals with the
distribution function and discusses logistics and channel management.

What is Marketing ?
It is a process by which
-one identifies the needs and wants of the people.
-one determines and creates a product/service to meet the needs
and wants. [PRODUCT]
-one determines a way of taking the product/service to the market
place. [PLACE]
-one determines the way of communicating the product to the
market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]
and then creating a transaction for exchanging the product for
a value.
and thus creating a satisfaction to the buyer's needs/wants.
TERMS to understand.
1.Product/Service means a product or service or idea to satisfy
the people's needs / wants.
2.Needs mean when a person feels deprived of something.
3.Wants mean when a person's need is formed / shaped
by personality, culture, and knowledge.
4.Value means the benefits that the customer gains from
owning and using the product and the cost of the product.

5.Satisfaction means the extent to which a product's

perceived performance matches a buyer's expectation.
6.Exchange means the act of obtaining a needed/ wanted
object by offering something in return.
7.Transactions mean a tradeoff between a buyer / a seller
that involves an exchange at agreed conditions.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.
It encompasses market research, pricing, promotion, distribution, customer care, your brand image
and much more.
===============================================================
=
Most organizations use marketing / its elements , which include
*Market research to determine consumer needs.
*Prototype product development
*Product testing
*Product development
*Product planning
*Test Marketing
*Development of Market Planning
*Sales
*Distribution
*Advertising
*Sales Promotions
*Merchandising
*Retail
*Marketing Research TO determine consumer satisfaction
======================================================
THIS SHOWS THE ''SALES'' AND ''DISTRIBUTION '' ARE THE
MAJOR ELEMENTS OF THE ''MARKETING PROCESS''
===============================================================
============
DEFINITION OF SALES

What is Sales ?
It is a process by which
-one identifies the people, who have a need. [ PROSPECTING]
-one determines the needs of the people.[ NEEDS ]
-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]
-one determines the way of communicating your product as a solution. [RECOMMENDING]
-one determines the value for the product for the prospect.[ ADVOCATING YOUR PRODUCT].
-one determines / sells benefits of the product

to the prospect. [ SELLING BENEFITS]

and then creating a transaction for exchanging the product for

a value. [ CLOSING THE SALE ]
and thus creating a satisfaction to the buyer's needs/wants.
[ CREATING CUSTOMER SATISFACTION]
================================================
DEFINITION OF DISTRIBUTION
THE ACT OF DISTRIBUTION MEANS ; apportionment. Something distributed; over
-The geographic occurrence
-The customers occurrence
-The usage occurrence
-Others
The process of distribution of goods/services could include
-logistics
-warehousing
-transportation
-order processing/ servicing
etc etc

Traditionally, distribution has been seen as dealing with LOGISTICS: how to get the product or service
to the customer. It must answer questions such as:
The two-step channel of distribution is for the producers to give the retail small quantities.
Should the product be sold through a retailer?
Should the product be distributed through wholesale?
Should multi-level channels be used?
How long should the channel be (how many members)?
etc etc
The distribution channel
Frequently there may be a chain of intermediaries, each passing the product down the chain to the
next organization, before it finally reaches the consumer or end-user. This process is known as the
'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in these chains will
have their own specific needs; which the producer must take into account, along with those of the allimportant end-user.
Channels
A number of alternative `channels' of distribution may be available:
Selling direct
Mail order (including Internet and telephone sales)
Retailer
Wholesaler
Agent (who acts on behalf of the producer)

Sales and Distribution module (SAP)

SALES & DISTRIBUTION
(SD)
Table of Contents
1

Definition of Sales & Distribution. 2

Enterprise Structure. 3

2.1

Client 5

2.2

Company. 5

2.3

Company Code. 6

2.3.1

Create a Fiscal Year Variant 7

2.3.2

Maintain Fiscal Year Variant 7

2.3.3 Assign Company Code to Fiscal Year Variant 8

2.3.4

Posting Periods. 9

2.3.5

Define Variants for Open Posting Periods. 9

2.3.6

Open and Close Posting Periods. 9

2.3.7 Assign Variants to Company Code. 10

2.3.8

Define Document Number Ranges. 10

2.3.9

Define Document Types. 11

2.3.10

Define Tolerance Groups for Employees. 12

2.3.11

Assign User/Tolerance Group. 13

2.4

Plant 13

2.4.1 Assign plant to Company Code. 14

2.5

Location. 14

2.6

Division. 15

2.7

Sales Organization. 15

2.7.1 Assign Sales Organization to Company Code. 16

2.8

Distribution Channel 16

2.8.1 Assign Distribution Channel to Sales Organization. 17

2.8.3

Set up Sales Area. 18

2.8.4 Assign sales organization distribution channel plant 19

2.9

Define Shipping Points. 20

2.9.1 Assign Shipping point to plant 20

2.9.2

Shipping point and goods receiving point determination: 21

Assign Shipping Point 21

3

Customer Master 21

3.1 Creation of Customer Account Group. 22

3.2 Create Number Ranges for Customer Accounts. 24
3.3 Assign Number Ranges to Customer Account Groups. 25
3.4 Define Incompleteness Procedures. 26
3.5 Define Order Type. 27
3.6 Define Item Category. 28

Definition of Sales & Distribution

For the representation of your company structures in the SAP System, different organizational
units are available for the areas of sales, shipping and billing. First analyze the structure and
process organization in your company and then compare them with the SAP structures. In the

standard version, different organizational elements are defined as examples. In general, these
elements are not sufficient for individual demands. Extend the elements accordingly.
During the clarification phase, work with the structures delivered by SAP. Change the names if
necessary in order to achieve a high degree of identification and acceptance with project
members and user departments from the beginning. After having defined the organizational units,
allocate the elements to each other in the menu option Allocation. Then check the defined
organizational units in the menu option Check. Only a limited number of users should be given
authorization to maintain organizational elements. Determine the authorization profiles
accordingly. As soon as the processing of the menu item is completed, access should be blocked
so that no further changes can be made.
The organizational units set up the framework of sales processing with the SD system. The
master records of sales and distribution (for example, customer master records and pricing
elements) as well as the documents used in processing (for example, orders and delivery
documents) are entered in dependency with the organizational structures. The data in a master
record is only valid within a certain part of the organization. The sales and distribution
documents are entered in the respective sub area of the organization. The master data valid there
is automatically included in the sales & distribution documents. Different control criteria are
specified for the management and processing of the master data depending on the organizational
units. In order to simplify master record and document entry, the organizational units can be
stored as user parameters in the user master record. It is not necessary to specify the
organizational units since the values are proposed automatically.

Enterprise Structure

This helps us to portray the specific organizational structure of your business in the R/3 System.
To portray your company structure, different Accounting, Logistics, and Human Resources
organization units are provided.
In the SAP R/3 system, organizational levels are structures that represent the legal or
organizational views of a company. Defining organizational levels is an essential step in the
project and is vital for all subsequent activities.
First analyze the structures and procedures in your company, and then match them to the SAP
structures. As soon as your organization units are ready, access should be locked.
SD is integrated in the R/3 system in the following way:
The following is the Organizational structure from SD perspective:

Shipping Point
Plant
Credit Control Area
Controlling Area
Sales
Area
Dist Channel
Sales Org
Load
ing
Point
Division
One client can have n number of company codes
One company code can have n number of sales organizations
One sales organization is assigned to exactly one company code
A sales organization is assigned to one or more plants
Each sales organization has its own master data. Eg. Its own Customer and Material master
data as well as condition records.
A sales organization can have n number of distribution channels (you can vary master data
relevant to sales such as customer master data, sales master data, prices, and
surcharges/discounts for each sales organization/distribution channel.
Sales area is a combination of sales organization, distribution channel, and
division
Sales document, delivery document, and billing documents are always assigned to a sales area.

 Every sales process always takes in a specific sales area.

A sales office can be assigned to more than one sales area
Sales groups are assigned to sales offices
A sales group consists of a certain number of sales persons
A sales person is assigned to a sales office and group in the sales employee master record
One sales organization can sell the goods from several plants.
A plant can be assigned to different sales organizations at any one-time all of which can sell
from the plant.
A sales organization can also sell products supplied by a plant which is assigned to a different
company code0inter-complany sales processing.
A broad product range can be divided into divisions. In sap-system, you can also define a
division-specific sales structure.
You can make customer-specific agreements for each division.
Following organizational elements are required for the SD transactions:
Client
Company
Company Code
Plant
Location
Storage Location
Sales Organization
Distribution Channel
Division
Sales Area
Shipping Point

2.1

Client

The client is a commercial organizational unit within R/3 system, with its own data, master
records, and set of tables. From the business perspective, the client forms a corporate group.

2.2

Company

A company is an organizational unit in Accounting which represents a business organization

according to the requirements of commercial law in a particular country.
You store basic data for each company in company definition
A company can consist of one or more company codes.
All company codes within a company must use the same transaction chart of accounts and the
same fiscal year breakdown.
The company code currencies can be different.
A company has one local currency in which its transaction figures are recorded.
IMG
Definition
Financial Accounting
Define Company
New Entries
Company (Ex: 0002, Description Test Company)

2.3

Company Code

The company code is the smallest organizational unit for which you have an independent
accounting department.
Balance sheets, profit and loss statements required by law are created at company code level.
Following is the path to define a company Code:
IMG
Enterprise Structure

Definition
Financial Accounting
Edit, Copy, Delete, Check Company Code
Click Edit, Copy, Delete, Check Company Code to enter new company code details.
Steps to create a new company code:
1. Copy Company Code
2. Click or F2
3. Enter From (Ex: US01) & To Company Code (Ex: 9999).
4. Enter the currency.
5. Save.

2.3.1

Fiscal Year Variant

Fiscal year is a period of usually 12 months, for which the company produces financial
statements and takes inventory.
A fiscal year consists of several posting periods and if necessary, special periods that can be
posted to after a temporary year-end closing.
You define how your fiscal year is set up in the SAP System by creating a fiscal year variant at
client level. Each company code is assigned a fiscal year variant.
Several company codes can use the same fiscal year variant. Following is the path to maintain
a Fiscal Year Variant:

2.3.2

Maintain Fiscal Year Variant

IMG
Financial Accounting
Financial Accounting Global Settings
Fiscal Year
Maintain Fiscal Year Variant

1. Click New Entries to create a new Fiscal Year Variant or Use the Existing Variant
(Ex: Z4).
2. Select Z4 and click period texts under dialog structure

2.3.3

Assign Company Code to Fiscal Year Variant

For every company code, you must specify which fiscal year variant is to be used.
IMG
Financial Accounting
Financial Accounting Global Settings
Fiscal Year
Assign Company Code to Fiscal Year Variant
Steps to assign company code to a fiscal year variant:
1. Enter fiscal year variant against company code
1. Save

2.3.4

Posting Periods

It is possible to specify which company codes are open independent of a company code. Thus, as
many company codes as required can use the same variants for open company codes. You make
the necessary settings to be able to manage identical posting periods in several company codes.
The following is the path to define, open, close and assign variants to posting periods:
IMG
Financial Accounting
Financial Accounting Global Settings
Document
Posting Periods

2.3.5

Define Variants for Open Posting Periods

Steps to define variants for open posting periods:

1. New Entries
2. Enter the Variant and Name (Ex: 9999 Fiscal Year Variant 9999)
3. Save.

2.3.6

Open and Close Posting Periods

Steps to open and close posting periods:

1. Copy the existing periods by selecting the required periods.
1. Click button to copy.
2. Rename the Variant (Ex: 9999).
3. Save.

2.3.7

Assign Variants to Company Code

Steps to assign variants to company code:

1. Enter the Variant against the Company Code (Ex: 9999 Variant to 9999 Company Code)
2. Save

2.3.8

Define Document Number Ranges

A number range is a range of numbers that you can assign to business objects (or their subobjects) of the same type. The following is the path to define a number range:
IMG
Financial Accounting
Financial Accounting Global Settings
Document
Document Number Ranges
Define Document Number Ranges
Check whether the number ranges are transported to company code 9999

2.3.9

Define Document Types

A document type is a classification for documents that can be stored using SAP Archive Link.
For example, incoming invoices can be of the following document types:
Incoming invoice without invoice check (FIIINVOICE)
Incoming credit memo without invoice check (FIICREDIT)
IMG
Financial Accounting
Financial Accounting Global Settings
Document
Document Header
Define Document Types
Ex: Document Type SA

2.3.10

Define Tolerance Groups for Employees

Predefine various amount limits for your employees with which you determine:
the maximum document amount the employee is authorized to post
the maximum amount the employee can enter as a line item in a customer or vendor account
the maximum cash discount percentage the employee can grant in a line item
the maximum acceptable tolerance for payment differences for the employee.
Payment differences are posted automatically within certain tolerance groups. This way the
system can post the difference by correcting the cash discount or by posting to a separate
expense or revenue account. Following is the path to define tolerance groups for employees.
IMG
Financial Accounting
Financial Accounting Global Settings
Document

Line Item
Define Tolerance Groups for Employees
Steps to define Tolerance Group
1

Click New Entries.

Give the Tolerance Group and Company Code.

2.3.11

Assign User/Tolerance Group

IMG
Financial Accounting
Financial Accounting Global Settings
Document
Line Item
Assign User/Tolerance Group
Steps to assign user/tolerance groups
1. Against user enter tolerance group
Ex: User name ABUSR01 and Tolerance Group 9999.
1. Save

2.4

Plant

A plant is an operating area or branch within a company. Following is the path to define a Plant
IMG
Enterprise Structure
Definition
Logistics general
Define, Copy, Delete, Check plant

Steps for defining a plant:

1.

Click Define, copy, delete, check plant

1. Click Define Plant
2. New Entries
3. Enter the data for plant
4. Save

2.4.1

Assign plant to Company Code

IMG
Enterprise Structure
Assignment
Logistics General
Assign plant to company code
Steps to assign Plant to Company Code:
1. Delete the default assignments
2. Select the company code (eg:9999)
3. Click Assign
4. Check plant
5. Save

2.5

Location

A location allows a plant to be classified according to spatial or situation criteria. Following is

the path to define a Location.
IMG
Enterprise Structure

Definition
Logistics General
Define Location
Steps to define a Location
1. Click New Entries
2. Enter Plant, Location, Name
3. Save

2.6

Division

An organizational unit based on responsibility for sales or profits from saleable materials or
services. A Division is a product group that can be defined for a wide-ranging spectrum of
products. You can make customer-specific agreements for every division, such as partial
deliveries, pricing, and terms of payment. Within a division you can carry out statistical analyses
or set up separate marketing. Divisions are utilized in SD but they are defined and maintained
under the following path.
IMG
Enterprise Structure
Definition
Logistics General
Define, copy, delete, check division
Steps to define Division:
1. Click Define, copy, delete, check division
2. Click on Define division
3. New Entries
4. Enter the values for Division and Name
5. Save

2.7

Sales Organization

Sales Organization is an organizational unit in Logistics that structures the company according to
its sales requirements. A sales organization is responsible for selling materials & services and to
negotiate terms of sale. Following is the path to define a Sales Organization.
IMG
Enterprise Structure
Definition
Sales and Distribution
Define, Copy, Delete, Check Sales Organization
Steps to define a Sales Organization:
1. Click Define Sales Organization
2. Click New Entries
3. Enter the values for Sales Organization, Name (eg: 9999, Sales Organization 9999)
4. Save

2.7.1

Assign Sales Organization to Company Code

IMG
Enterprise Structure
Assignment
Sales and Distribution
Assign Sales Organization to Company Code
Steps to assign sales organization to company code
1. Select company code (eg:9999)
2. Click Assign
3. Check Sales Organization

4. Save

2.8

Distribution Channel

A channel through which saleable materials or services reach customers. Distribution channels
include wholesale, retail, and direct sales. You can assign a distribution channel to one or more
sales organizations.
Following is the path to define a Distribution Channel.
IMG
Enterprise Structure
Definition
Sales and Distribution
Define, Copy, Delete, Check Distribution Channel
Steps to define a Distribution Channel
1. Click Define Distribution Channel
2. New Entries
3. Enter the data for Distribution channel and Name
4. Save

2.8.1

Assign Distribution Channel to Sales Organization

IMG
Enterprise Structure
Assignment
Sales and Distribution
Assign Distribution Channel to Sales Organization
Steps to assign distribution channel to sales organization:
1. Click Assign distribution channel to sales organization

2. Select Sales organization

3. Click assign
4. Check Distribution Channel
5. Save
2.8.2 Assign Division to Sales Organization
IMG
Enterprise Structure
Assignment
Sales and Distribution
Assign division to sales organization
Steps to assign division to sales organization:
1. Select sales organization (eg:9999)
2. Click assign
3. Check division
4. Save

2.8.3

Set up Sales Area

Sales Area is a combination of sales organization, distribution channel, and division.

Following is the path to set up sales area
IMG
Enterprise Structure
Assignment
Sales and Distribution
Set up sales area

Steps to set up sales area:

1. Select Sales Organization
2. Click Assign
3. Check Distribution Channel
4. Select Distribution Channel
5. Check Division
6. Save

2.8.4

Assign sales organization distribution channel plant

IMG
Enterprise Structure
Assignment
Sales and Distribution
Assign sales organization distribution channel plant
Steps to assign sales organization-distribution channel-plant:
1. Select Sales Organization
2. Click Assign
3. Check Plant
4. Save

2.9

Define Shipping Points

Shipping point is an organizational unit in Logistics that performs shipping processing.

The shipping point is the part of the company responsible for the type of shipping, the necessary
shipping materials and the means of transport. Deliveries are always initiated from exactly one
shipping point. A shipping point is assigned one or more plants and can be subdividing into
several loading points.
Example: Shipping points are a company mail depot or plant rail station.

A loading point is a voluntary entry. It is merely a subdivision of a shipping point. A loading

point is manually entered into the header data of the delivery.
Following is the path to define shipping point.
IMG
Enterprise Structure
Definition
: Logistics Execution
Define, copy, delete, check shipping point
Steps to define shipping point:
1. Click Define shipping point
2. Click New Entries
3. Enter Shipping point, Description
4. Save

2.9.1

Assign Shipping point to plant

IMG
Enterprise Structure
Assignment
Logistics Execution
Assign Shipping Point to plant
Steps to assign shipping point to plant:
1. Select the plant
2. Click Assign
3. Check Shipping point
4. Save

2.9.2

Shipping point and goods receiving point determination:

Assign Shipping Point

IMG
Logistics Execution
Shipping
Basic Shipping functions
Shipping point and goods receiving point determination
Assign shipping points

3
Master Data in Sales and
Distribution
Customer Master
Material Master
Customer material Info Record
Item Proposals
BOM

Customer Master Record

Data record containing all the information necessary for any contact with a certain customer, in
particular for carrying out business transactions.
This information includes, for example, address data and bank data.
The basic customer master records we create are
Sold-to party record
Ship-to party record
Bill-to party record

 Payer record
Other important Customers master records are inter-company customers, one-time customer
Customer Master Data configuration includes:
1. A/C groups
2. Number ranges
3. Assign number ranges
4. Partner Determination

3.1.1 Creation of Customer Account Group

In this step, you determine the account groups for customers. You can also define reference
account groups for one-time accounts. You can use these to control the fields of the one-time
account screen so that, for example, certain fields are displayed as required fields or are hidden.
When creating a customer account, you must specify an account group. You can specify a
reference account group under Control in the General data part of a one-time accounts
master data. If you do not specify a reference account group, then, as previously, all fields of the
one-time account screen are ready for input during document entry.
You use the account group to determine:
the interval for the account numbers
whether the number is assigned internally by the system or externally by the user (type of
number assignment)
whether it is a one-time account
which fields are ready for input or must be filled when creating and changing master records
(field status)
fields can be turn on and off by using the assigned account group.
You determine the account number interval and the type of number assignment using the number
ranges.
The Account group defines which fields are available in the customer master records.
A sold-to party needs 3 views

 General data view

Company Code data view
Sales data view
A ship-to party needs 2 views
General data view
Sales data view
A bill-to party needs 3 views
General data view
Company Code data view
Sales data view
A payer needs 2 views
General data view
Company code data view
The following is the path to create customer account group:
IMG
Financial Accounting
Accounts receivable and accounts payable
Customer Accounts
Master Data
Preparations for creating Customer Master Data
Define Account Groups with Screen Layout
Steps to create customer account group:
1. Click New Entries

2. Enter Account group number starting with the letter Z (SAP uses prefix Z for all upgrades
in order to ensure it does not overwrite client-specific entries)
3. Enter Name
eg. Z100 Sold-to party
1. Set the field status of general data, company code data, sales data
Eg: Steps to set the field status
1. Select General Data under Field Status
2. Click Edit field status
3. Select the field eg: Address under select group
4. Click magnifying glass button
5. Name 1 You can make the filed Name1 Suppress or Required entry or
Optional entry or Display
6. Save
Like wise create account groups for ship-to party, bill-to party, payer and Turn the fields on/off
as per the requirement
Z200 Ship-to party
Z300 Bill-to party
Z400 Payer

3.1.2

Create Number Ranges for Customer Accounts

To do this, specify the following under a two-character key (number range interval key)
A number interval from which the account number for the customer accounts is to be selected
The type of number assignment (internal or external number assignment)
Allocate the number ranges to the account groups for customers.
The type of number assignment is especially important. The following are possible:

 Transferring the numbers of your customers/vendors from an existing system or a pre-system

(external assignment: The system enables the user to specify the number in the number range he
or she wishes to use).
Creating the master records under new numbers assigned by the SAP system (internal
assignment: the system assigns a number when creating the master records).
The following is the path to create number ranges for customer accounts:
IMG
Financial Accounting
Accounts receivable and accounts payable
Customer Accounts
Master Data
Preparations for creating Customer Master Data
Create Number Ranges for Customer Accounts
Steps to create number ranges for customer accounts:
1. Click
1. Click
1. Enter the number range
1. Save

3.1.3

Assign Number Ranges to Customer Account Groups

Assign the number ranges created in the preceding step to the account groups for customers. You
can use one number range for several account groups. Following is the path to assign number
ranges to customer account groups.
IMG
Financial Accounting
Accounts receivable and accounts payable
Customer Accounts

Master Data
Preparations for creating Customer Master Data
Assign Number Ranges to Customer Account Groups
Steps to assign number ranges to customer account groups:
1. Click Assign Number Ranges to Customer Account Groups
1. Enter the number range key against group and save

3.1.4

Partner Determination

When creating a customer master record, the SAP System proposes the allowed partner functions
to be maintained. According to the rules defined here, the partners are adopted from the customer
master records of the sold-to parties into the sales and distribution documents.
Partners such as the sold-to party, the bill-to party, and the payer are a necessary in the majority
of document processing. Automatic partner determination happens in the sales document,
delivery and billing document, sales activities, and the customer master record.

Define Incompleteness Procedures

In an incompleteness procedure you group together the fields that are to be checked for
completeness. If you have not entered data in one of the fields in the document, the document is
incomplete. Depending on the status group you can block certain subsequent activities for the
document.
For every field in the procedure you also have to define whether a warning message should be
issued during processing if no data is entered in this field. This function does not exist in delivery
processing. When you select the control field, it has no further consequences.
Following is the path to define incompleteness procedures:
IMG
Sales & Distribution
Basic Functions
Log of Incomplete Items
Define Incompleteness Procedures
Steps to Define incompleteness procedures:

1. Select A Sales Header

2. Click Procedures
3. Select 11
4. Click Fields

Define Order Type

The sales document types represent the different business transactions in Sales and perform a
central controlling function for the entire sales order process. Following is the path to define
sales document type:
IMG
Sales & Distribution
Sales
Sales Documents
Sales document Header
Define Sales Document Types
Steps to define sales document type:
1. Click New Entries (or) copy the existing std. order type (ex: select OR -std. order type,
click copy as icon, give a name to order type ex.: ZOR)
2. Enter the data
3. Save

Define Item Category

The item categories that are contained in the standard SAP R/3 System together with the sales
document types represent the usual business transactions.
You have the following options for defining your own item categories:

Copy an existing item category and change it according to your requirements.

Create a new item category.

Following is the path to define item category:

IMG
Sales and Distribution
Sales
Sales document
Sales document Item
item categories
Steps to define item categories:
1. Click New Entries
2. Enter the data
3. Save
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OTC FlowIn "Business"
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Shafiq Alibhai
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August 6, 2009
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2 thoughts on Sales and Distribution module (SAP)

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1. sharvan
August 13, 2009 at 7:52 am
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Rate This
hi..
I saw ur site its really good and appreciated..
I got more information from your site..
Thanks a lot.. Keep on Updating..
http://business-computer-sap.blogspot.com/
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2. Mikeb
August 5, 2010 at 4:05 pm
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Hi, I have I have sent a 1 questions by email, and appreciate if you would respond to my
email.
Id like to see what other people are asking as well.
Is this a good place to post, or is there a forum somewhere else?
Thanks
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SAP SD:

Sales overview

Enterprise structure related to SD

Master data, like Customer master data, material master data, condition master data and Output master da

Partner determination

Sales document types

Item categories

Schedule line categories

Pricing: Condition table, access sequence, Condition type, pricing procedure

Stock Posting

Free goods

Bills of Material

Material determination

Material Listing and Exclusion

Incompletion logs

Revenue account determination

Credit management

Outline agreements like quantity contract, value contract and scheduling agreements

Shipping process like Shipping point determination, Route determination, Shipping conditions picking ,PG

Delivery types

Delivery item categories

Invoice process

Billing types

Special sales processes like cash sales, rush orders ,consignment process and Third party process

Return sales process

Credit memo process

Debit memo process

Availability check

Rebate processing

Intercompany sales

Output determination

Copy control

Integration with MM,FI

Technical topics like ABAP tables, user exits and IDOCs

Real time scenarios

What is SAP SD ?

SAP SD ( Sales and Distribution ) is important module of SAP and handles all the
processes of order to delivery. SAP SD execute the business processes used in the
selling, shipping and billing of products and services.
SAP SD handles all the activities of sales and distribution.
Order processing is the process or work-flow associated with the picking, packing and delivery of
the packed items to a shipping carrier. Order processing is a key element oforder fulfillment. Order
processing operations or facilities are commonly called "distribution centers".
Contents
[hide]

1Process

2Picking
o

2.1Piece Picking

2.2Case Picking

2.3Pallet Picking

3Sorting

4Factors

5References

Process[edit]

Automated picking

Sorting packages according to destination

Order processing is a sequential process involving: [1]

Picking: consists in taking and collecting articles in a specified quantity before shipment to
satisfy customers' orders.

Sorting: process that separates items according to destination.

Pre-consolidation or package formation: includes weighting, labeling and packing.

Consolidation: gathering packages into loading units for transportation, control and bill of
lading.
This section requires expansion.
(September 2014)

Picking[edit]

Piece Picking[edit]
Piece picking, also known as broken case picking or pick/pack operations, describes systems where
individual items are picked. Operations using piece picking typically have a large stock keeping unit,
or SKU, base in the thousands or tens of thousands of items, small quantities per pick, and short
cycle times. Examples of piece pick operations include mail order catalog companies and repair
parts distributors. [2]

Case Picking[edit]
Operations that use case picking tend to have less diversity in product characteristics than
operations that use piece picking. There are typically fewer SKUs and higher picks per SKU.

[3]

Pallet Picking[edit]
Full-pallet picking, or unit-load picking, uses much simpler systematic methods than piece picking or
case picking. However, there are many choices in storage equipment, storage configurations and
types of lift trucks. [4]

Sorting[edit]
Sorting machines in distribution
This section requires expansion.
(October 2015)

Factors[edit]
The specific "order fulfillment process" or the operational procedures of distribution centers are
determined by many factors. Each distribution center has its own unique requirements or priorities.
There is no "one size fits all" process that universally provides the most efficient operation. Some of
the factors that determine the specific process flow of a distribution center are:

The nature of the shipped product - shipping eggs and shipping shirts can require differing
fulfillment processes

The nature of the orders - the number of differing items and quantities of each item in orders

The nature of the shipping packaging - cases, totes, envelopes, pallets can create process
variations

Shipping costs - consolidation of orders, shipping pre-sort can change processing operations

Availability and cost and productivity of workforce - can create trade-off decisions in
automation and manual processing operations

Timeliness of shipment windows - when shipments need to be completed based on carriers

can create processing variations

Availability of capital expenditure dollars - influence on manual verses automated process

decisions and longer term benefits

Value of product shipped - the ratio of the value of the shipped product and the order
fulfillment cost

Seasonality variations in outbound volume - amount and duration of seasonal peaks and
valleys of outbound volume

Predictability of future volume, product and order profiles

Predictability of distribution network - whether or not the network itself is going to change

Presence of small volume distribution

Minimization of shipping costs

This list is only a small sample of factors that can influence the choice of a distribution centers
operational procedures. Because each factor has varying importance in each organization the net
effect is that each organization has unique processing requirements.
The effect of Globalization has immense impacts on much of the order fulfillment but its impact is felt
mostly in transportation and distribution.