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INTRODUCTION TO COMPANY

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COMPANY PROFILE HERO There is always a better way

"Hero", the brand name symbolizing the steely ambition of the Munjal brothers came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today, the ignition was fueled by one vision - to build long-lasting relationships with everyone, including workers, dealers and vendors. This philosophy has paid rich dividends through the years. Today the Hero family consists of 3500 employees, 3500 of dealers and millions of customers. It is ISO 9001 & 9002 certified. Like every success story, Hero's saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. Throughout its success trail, the Hero Group and its members have displayed unwavering passion of setting higher standards for themselves and delivering simply the best to their customers. The Hero Group philosophy is "To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity." Thus apart from being customer-centric, the Hero Group also provides its employees with a fine quality of life and its business associates with a total sense of belonging. Today, Hero Group ranks amongst the Top 10 Indian Business Houses comprising 18 companies, with an estimated turnover of US$1.8 billion during the fiscal year 2003-2004.

Turnover of the company: 1000-2500 crs. No. of employees: 2501-5000

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THE DRIVING FORCE HISTORY

The success of the Hero Group lies in the determination and foresight of the Munjal brothers, who shared their vision with their workers and led the Group to a position where its name has become synonymous with top-quality two wheelers. The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal (Chairman and MD of Hero Cycles) and Mr. Om Prakash Munjal continue to carry the torch and are actively involved in the day-today operations of the Hero Group. The Hero Group is a thriving example of three generations of a family working and striving together to ensure quality, satisfaction and extensive growth.

THE VISION
The Hero Group are continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers. While doing so, they maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the group to excellence in everything we do.

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THE MISSION STATEMENT

Its our mission to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities. " This mission is what drives us to new heights in excellence and helps us forge a unique and mutually beneficial relationship with all our stakeholders. We are committed to move ahead resolutely on this path, shown to us by visionaries like Mr. Satyanand Munjal, Mr. Om Prakash Munjal, the late Mr. Dayanand Munjal and late Mr. Raman Kant Munjal. Mr Brijmohan Lall Munjal, Chairman & MD - THE HERO GROUP.

GLOBAL ALLIANCES

Over the years, Hero Group has strengthened its joint ventures, forged profitable relationships with its partners and allied itself with some of the best players in the market. Technology assimilation through wide sourcing has been and will continue to be an integral part of the progression of the Hero Group.

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Technology Related Partnerships/ Alliances & Joint Ventures Honda Motor Company of Japan Showa Manufacturing Company Honda Foundry Company Limited, Japan Fein Tools, Switzerland

IT Related Alliances

Product Engineering Related Alliances

SAP, AG, Germany Siemens Information Systems Limited DynEd International

PTC Porsche Design Target Design Universal Cycles Plc, UK

Ordinate Corporation EralMetall, Germany Navision Software India Private Limited

Gujarat Industrial Investment LiveBridge, USA Corporation Wean United, USA Kawasaki Steel Corporation, Japan National Bicycle, Japan Aprilia, Italy

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Table1:-HERO GLOBAL ALLAINCES

SYSTEM DEPARTMENTS
I am undergoing training in the Systems Department, which is well equipped with the latest software technologies. There are around 250 workstations. The Application Implementation is done in SAP R/3 with database in Oracle. The company has SAP R/3 4.7 application, which enables the effective and streamlined operations of the department, in an online integrated way. The staff skills are enhanced through proper training and deploying the appropriate resources of the company to get the maximum result. The Systems Department Team Mr. Narinder Singh (General Manager, IT) Mr. Bharat Bhushan (SAP Consultant) Mr. Kanwar Sumit Singh (SAP Consultant) Mr. Hemant Rai (Network Administrator)

WHY HERO CYCLES USES SAP?

Hero cycles ltd is a worldwide company so for proper management and working in real time world Hero implemented SAP which reduces paper work, proper management is maintained, easily get information at any time with just one click and most important all the departments are integrated which is very useful feature of sap so that consistency of data is maintained.

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2. PROJECT OVERVIEW

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INTRODUCTION TO SALES PROCESS DISTRIBUTION MODULE OF SAP

IN

SALES

AND

Sales Process refers to the all the activities from Pre- Sales activities to Payment by customer. Sales Process comes under the Sales and Distribution Module of SAP.

Let us study about the various activities involved in the Sales Process: Pre Sales Activities: Mailing List Phone Call records kept on the system Inquiries Quotations

Sales Order Processing: Customers place orders with a customer service representative Standard orders normally contain: o Customer and item information o Pricing for each item

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o o Inventory Sourcing:

Delivery schedules and information Billing information

If the product is available(availability checking) How the product is supplied: o From stock on hand o By replenishment activities(production order, purchase order) o Make to order o Shipped by an external supplier o Shipped from another warehouse

Shipping: Shipping includes 3 main thingsa) Delivery note b) Picking and Packing c) PGI(Post Goods Issue) a) Delivery note: Refers to final destination b) Picking and Packing: a. Batch Management Batches for further destination b. Serial number control Every product has serial number assigned to it c) PGI : a. Completes shipping process b. When customer takes ownership of goods c. Inventory is updated automatically Billing: Invoice generation Update Finance General Ledger accounts Update Customer Credit

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NEED AND OBJECTIVE

A sales process focuses on deals and opportunities. It is a set of steps and critical activities that have been developed based on the organizations experience. the sales process should outlines the major steps, for example qualification, discovery, proposing., and critical few activities sales professionals should follow to assure they are pursuing good dealsopportunities that are real and fit the companys sweet spot. The process outlines the activities critical to achieving success and winning! But its at the critical activity level that the sales process needs to be uniqueafter all, these are driven by our companys strategies and priorities. T The process is driven by its strategy for how it wants to work with its customers. The process is driven by the companys experience in winning or losing deals. No sales professional or sales organization can perform at the highest levels without having a sales process to guide the execution of their sales strategies. A sales process is mandatory for success.

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3. ENTERPRISE SOFTWARE OVERVIEW

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ENTERPRISE RESOURCE PLANNING (ERP)

Definition - Enterprise Resource Planning, a software solution that addresses the enterprise needs taking the process view of an organization to meet the organizational goals tightly integrating all functions of an enterprise.

Enterprise Resource Planning

Short for Enterprise Resource Planning, a business management system that

integrates all facets of the business, including planning, manufacturing, sales, and marketing.

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 As the ERP methodology has become more popular, software applications have

emerged to help business managers implement ERP in business activities such as inventory control, order tracking, customer service, finance and human resources.
Enterprise Resource Planning software, or ERP, doesn't live up to its acronym. Forget about planningit doesn't do much of thatand forget about resource, a throwaway term. But remember the enterprise part. This is ERP's true ambition.

SCOPE OF ERP

The various areas that can be covered under the concept of Enterprise Resource Planning (ERP) are discussed below: Customer Relations: Sales Support, Delivery, Billing, Credit. Logistics: Procurement, Production, Materials Mgt. Human Resources: Payroll, Organization Hiring.
Treasury: Commitments, Investments, Currencies.

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EXPLORING ERPS BENEFITS

Integrated, uniform, relevant and up-to-date information is vital for the existence for the enterprise. ERP brings together people who work on share tasks within the same enterprise. Some of the tangible benefits of ERP are: Reduction of lead-time by 60% 99% on time shipments Doubled business Increase of inventory turns to over 30% Manufacturing of single bicycle time reduced to 80% Better customer satisfaction Improved vendor performance Increase flexibility Reduced quality cost Improved workflow and efficiency. Improved access to information. Improved controls and program alerts. Improved resource utility Improved information accuracy Improved decision making capability

SHORTCOMINGS OF ERP
Problems with ERP systems are mainly due to inadequate investment in ongoing training for the involved IT personnel - including those implementing and testing changes - as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and the ways in which it is used. Disadvantages are: Customization of the ERP software is limited.

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 Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive leading to a new category of "ERP light" solutions. ERPs are often seen as too rigid and too difficult to adapt to the specific workflow Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, and then over time "dirty data" will reduce the reliability of some applications. Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software. Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits.

SAP
SAP refers to SYSTEM, APPLICATIONS AND PRODUCTS IN DATA PROCESSING. SAP AG is a German software development and consulting corporation, which provides enterprise software applications and support to businesses of all sizes globally. Headquartered in Walldorf, Germany, with regional offices around the world, SAP is the largest software enterprise in Europe and the fourth largest software enterprise in the world as of 2009. The company's best known product is its SAP Enterprise Resource Planning (SAP ERP) software.

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 SAP was founded in 1972 as Systemanalyse und Programmentwicklung ("System

Analysis and Program Development") by in Mannheim, Baden-Wrttemberg (Dietmar Hopp, Plattner, Klaus E. Tschira, and Claus Wellenreuther).

five former IBM engineers Hans-Werner Hector, Hasso

SAP R/3 - ENTERPRISE SOFTWARE

SAP R/3 refers to SAP Real Time /3 tier architecture. Enterprise software is integrated software that facilitates the flow of information among all the processes of an organizations supply chain. A supply chain describes the chronological and logical relationships of business transactions from original supply to final consumption. A value chain encompasses those activities in the supply chain that add value to a product or service of an organization. A value chain views all the business events from the receipt of a customer order to the delivery of that order. For example, value is added when the production process takes raw materials and transforms them into a finished product, when the product is sold to the customer. A company is profitable if the price consumers are willing to pay for a product exceeds the costs of creating value.

Flow of information in Enterprise Software

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The R/3 Basis is the business operating system software that resides on the database server, the application server, and the clients of the end user of the R/3 installation. The SAP R/3 Basic system is a multi-tier client/server system. The classic configuration of a SAP R/3 System contains the following software layers: PRESENTATION LAYER Presentation Layer contains the software components that make up the SAPGUI (Graphical User interface). This layer is the interface between the SAP R/3 Systems and its users. The SAP R/3 system uses the SAPGUI to provide an intuitive graphical user interface for entering and displaying data. The presentation layer sends the users input to the application server, and receives data from it. APPLICATION LAYER The application layer consists of one or more application servers and a message server. Each application server contains a set of services used to run in the SAP R/3 System. Theoretically, you only need one application server to run a SAP R/3 System. In practice, the services are distributed across more than one application server. This means that not all application servers will provide the full range of services. The message server is responsible for communication between the application servers. It passes requests from one application server to another within the system. It also contains information about application server groups and the current load balancing within them. It uses this information to choose an appropriate server when a user logs onto the system. DATABASE LAYER The database layer consists of a central database system containing all of the data in the SAP R/3 System. The database system has two components - the Database Management System (DBMS), and the database itself. SAP does not manufacture its own database. Instead, the SAP R/3 System supports the following database systems from other suppliers: ADABAS D, DB2/400 (on AS/400), DB2/Common Server, DB2/MVS, INFORMIX, Microsoft SQL Server, ORACLE and ORACLE Parallel Server. The database does not only contain the master data and transaction data from your business applications, all data for the entire SAP R/3 System is stored there. For example, the database contains the control and Customizing data that determine how your SAP R/3 System runs. It also contains the program code for your applications. Applications consist Presentation Layer Application Layer Database Layer

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of program code, screen definitions, menus, function modules, and various other components. These are stored in a special section of the database called the SAP R/3 Repository, and are accordingly called Repository objects. You work with them in the ABAP Workbench. The following diagram depicts the whole scenario

Software layers of R/3 system

FEATURES OF 3-TIER ARCHITECTURE

SCALABILITY

Adding more applications or more users to the system. When more users are added to the system, another application server may be added to handle the additional processing demands of those users. FLEXIBILITY The number of application modules may be increased without changing the Basis System software that runs on the application servers and the database server.

ON-GOING MAINTENANCE

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Business functions included in the system may be removed and replaced by other functions that better match current business practices. Also, changes in organization structure can be made using the R/3 Reference Model and does not require changes in the Basis Software system.

ADVANTAGES OF SAP R/3

The SAP R/3 software helps in providing the various functions in the system: SECURITY THROUGH INTEGRATION It helps in providing full-fledged integration of the various data transfers and high quality reports can be made easily.

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SAVING TIME WITH INTEGRATION The consolidation software helps to shorten the time needed to close the books; the financial transactions in the ledger are integrated with the consolidation database and helps in getting the required information at any time. AUTOMATION OF CONSOLIDATION PROCEDURE It helps in reducing the time and expenses to manually enter all the documents especially in the area of consolidation investments. COST EFFECTIVE AUDITS The system generates printed audit reports and allows the auditor to perform interactive analysis of special detailed information directly on the screen. CUSTOMIZING THE SOFTWARE AS PER THE NEEDS It is helpful in making new programs as per the requirements. PRE-FIGURED FOR THE FAST IMPLEMENTATION System comes with a variety of useful consolidations, which can be put to use immediately or can be employed after minimal adjustments. The system includes several industry-related plans. ACCOUNTING AUTONOMY Running your consolidation on a separate computer increases the accounting departments autonomy. This is very helpful during the closing period when there is lot of workload. INFORMATION SYSTEM The controlling component includes versatile reporting functions. Exception reporting and interactive navigation through the database enhances the preparation of information.

SAP APPLICATION MODULES

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SAP has several layers. The Basis System is the heart of the data operations and should be not evident to higher level or managerial users. Other customizing and implementation tools exist also. The heart of the system from a manager's viewpoint are the application modules.

R/3 Core business processes These modules may not all be implemented in a typical company but they are all related and are listed below:

FI Financial Accounting-designed for automated management and external reporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted. This connection means that the "books" are designed to reflect the real situation. CO Controlling--represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. It too is automatically updated as events occur. AM Asset Management--designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets, depreciation and investment management. PS Project System--is designed to support the planning, control and monitoring of long-term, highly complex projects with defined goals. WF Workflow--links the integrated SAP application modules with cross-application technologies, tools and services. IS Industry Solutions--combine the SAP application modules and additional industryspecific functionality. Special techniques have been developed for industries such as banking, oil and gas, pharmaceuticals, etc.

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HR Human Resources--is a complete integrated system for supporting the planning and control of personnel activities. PM Plant Maintenance--In a complex manufacturing process maintenance means more than sweeping the floors. Equipment must be services and rebuilt. These tasks affect the production plans. MM Materials Management--supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder point processing, etc. QM Quality Management--is a quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement. PP Production Planning--is used to plan and control the manufacturing activities of a company. This module includes; bills of material, routings, work centers, sales and operations planning, master production scheduling, material requirements planning, shop floor control, production orders, product costing, etc. SD Sales and Distribution--helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are; pre-sales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.

Technical Modules are: ABAP BASIS(administrator part)

MODULES IMPLEMENTED AT HERO CYCLES

The ERP package implementation at Hero Cycles covers the following seven modules:1. 2. 3. 4. 5. 6. 7. Cost Controlling Sales and Distribution Material Management Production Planning & Control Plant Maintenance Quality Management Financial Accounting

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TRAINEE SERVER (IDES)

SAP IDES the "Internet Demonstration and Evaluation System" in the R/3 System, represents a model company. SAP IDES is a normal R/3 but with lots of DEMO data. It is purely for education .It is a training server, used to give training to users. When sap is implemented in company, first IDES is installed so that users become familiar with different screens and transaction codes. It is simple to use and has a variety of master and transaction data, and is used for demos, online/classroom training, and presentations. IDES uses easy-to-follow business scenarios to show you the comprehensive functions of the R/3 System. The focal point of IDES, however, is not the functionality itself, but the business processes and their integration. SAP regularly updates the IDES data (master data, transaction data, and customizing). Above all, IDES shows you the possibilities of the integrated applications in the SAP System. IDES cover all aspects of a business enterprise, including Human Resources, Financial Accounting, Product Cost Planning, Overhead Management, Profitability Analysis, Planning, Sales and Distribution, Materials Management, Production, and much, more.

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SAP SALES AND DISTRIBUTION MODULE

The Sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the Order to Cash process. The SD module is an application module for supply-chain and operational performance management, and provides support to customers. This module is integrated with the Material Management (MM) and Production Planning (PP) functional modules. It also allows organizations to input sales price of products for customers and check for open orders. It includes the following information and processes:

Customer Master and Material Master data Sales Orders Deliveries Pricing Billing Credit Management

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4. HARDWARE AND SOFTWARE REQUIREMENTS

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SAP CONFIGURATION / PROCESSING ENVIRONMENT

Hero Cycles has implemented SAP R/3 having following features: SAP R/3 release 4.7 Enterprise SAP version 4.7 Enterprise upgrade from 4.0B as Front-end. Currently supporting 150 users

All the departments work under the environment of

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IBM AIX with RS/6000 SP Server, IBM P630 Server. Oracle 8.0.6 upgraded to Oracle 9.2.0.4 as Backend RDBMS for R/3 system. ABAP/4 as application programming language.

Windows 98 as client operating system. Three-tier architecture Class B IP addressing Core Builder 9000 (switch from 3COM) is used to provide networking (Client Server) connections to various department within organization.

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5. PROJECT ANALYSIS AND DESIGN

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ENTERPRISE STRUCTURE
In enterprise structure we learn how to portray the specific organizational structure of our company in R/3 system. First we analyze the structures and procedures in our company and then match them to the SAP structures .To help us portray our structures various organizational elements are defined as e.g. In standard version .Normally these would not cover all our needs thus we extend the elements and define them as required .as soon as our organizational units are ready; access is located so that no other changes can be made. The enterprise structure consists of: Controlling area Company Company code Plant Storage location Purchase organization Sales area Sales organization Distribution Channel Division CLIENT (COMPANY) A client is a self-contained technical unit. A client can be considered to be a synonym for group. COMPANY CODE A complete Accounting unit can be representing as the smallest organizational unit of external accounting. At Company Code level we create Balance sheet required by law Profit and Loss statement. Each company code represents an independent accounting unit. Several company codes can use the same chart of account.

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SALES ORGANIZATION The highest-level of organizational unit in SD is Sales Organization. Responsible for Distributing goods and services, Negotiation sales conditions, Product liability and other customer rights of recourse. Sales organization is also used to take for example a regional, national or international. A sales organization assigned to a company code.

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DISTRIBUTION CHANNEL Distribution Channel represents strategies to distribute goods and services to customer. DC is assigned to a sales organization. The assignment is not unique. You can share Customer, Material and Condition master data by maintaining a reference/common DC.

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DIVISION A Division is used to group material and services. A material can have only one Division. We can make Customer- specific agreements for each Division, for example regarding partial deliveries or pricing within Division. (In CMIR) You can share Customer and Condition master data by maintaining a reference/common Division. A Division is assigned to a sales organization. The assignment is not unique. You can use cross division to enter multiple materials with various divisions in a sales order. You can choose division specific sales, it is controlled by customizing for sales document type.

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SALES AREA A Sales area is a combination of a Sales organization, DC and Division. It defines the Distribution channel of a Sales organization uses to sell products of certain Division By defining and assigning Sales Organization, DC and division a Sales area not automatically formed, you have to set up a sales area. A sales area can belong to only one company code. Assigning the sales organization to company code creates this relationship. Each sales and distribution document is assigned to exactly one sales area. This assignment cannot be changed. Various master data depending on the sales area, for example customer master data, material master data, price and discount. This system also carries out a number of checks concerning the validity of certain entries according to the sales Area. Sales area assigned to Credit Control Area. Sales office assigned to Sales Area Sales group assigned to Sales office. Employee of a sales office can be assigned to sales group.

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BUSINESS AREA The Business Area is a separate business unit for which internal reporting can be carried out. A company code may be divided into multiple business areas. A business area may also be shared by several company codes. Business area is not limited by company codes. For this reason, the business areas in all company codes must have the same description. Using organizational unit is optional. Business area can be used to prepare balance sheets and profit and loss statements not only for company code, but also for other internal areas (E.g., division-related). The relevant business area is determined for each order item according to defined rule. Rules for Business area determination Business Area assignment by Plant and Item division. Business Area assignment by sales area. Business Area assignment by Sales Organization and D.C, Item Division.

PLANT The Plant is a location where material is kept. Represent a production facilities or Material requirement planning in the System. In sales and Distribution, A Plant represents the location from which Materials and Services are distributed and corresponds to a distribution center. The relevant material stocks kept here. A Plant assigned to a company code. Inventory valuation is done either at company code level or Plant level; however the stock is managed at Storage location level. A Delivering plant assigned to Combination of Sales organization and Distribution channel. A plant is essential for determine the Shipping Point.

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SHIPPING POINT Shipping Point highest organizational unit in Shipping. A shipping point is under client level. A shipping point assigned to a Plant. A Shipping point can be assigned to multiple plants. Various Shipping point can be assigned to same plant. The Shipping point can be a loading ramp, a mail depot or a rail depot. It can also be a group of employees responsible only for organizing urgent deliveries. The shipping point is responsible for processing shipping. Each Outbound Delivery is processed by exactly one shipping point. The shipping point is normally determined automatically (At item level) for each item in the sales document. The automatic default value can be later changed manually in sales order if we have planned for a different shipping point. We can change shipping point in delivery document only at initial create screen before saving the delivery document. Shipping point determination based on these combinations. Delivering Plant Shipping condition- Sales document type OR Customer master data-Sold to Party (Shipping Tab Page)

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 Loading group-Material master data (Sales: Gen/plant) Shipping condition from sales document type has precedence over that from customer master.

WAREHOUSE Warehouse having following organizational units for efficient processing of goods receipt and goods issue.

Warehouse Number: The entire warehouse structure is managed under one

warehouse Number. This number represents the warehouse complex. Warehouse Number assigned to a combination of Plant and storage location.

Storage Type: The different warehouse areas, which differ with respect to

their organizational and technical features, are defined as storage types (for example-high-rack warehouse with random storage, picking warehouse with fixed bins, or shipping area).

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Picking area: Below the storage Type level, The Picking area group Staging area: The staging area is a part of the warehouse where goods are Door: A Door can be used for both the inbound and outbound delivery of

together storage bins from a picking point of view.

stored immediately after unloading or shortly before loading.

goods.

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ENTERPRISE STRUCTURE (FLOW)

Sales Organization is assigned to ONE company code A Plant can be assigned to ONE Company Code

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A Plant can be assigned to MANY Sales Organizations/Distribution Channels A Plant can be assigned to MANY Shipping Points A Shipping Point is assigned to one or MANY Plants Distribution channel can be assigned to MANY Sales Organizations A Company Code can be assigned to MANY Plants

NAVIGATION FOR ASSIGNMENTS

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SALES ORGANIZATION TO COMPANY CODE

DISTRIBUTION CHANNEL TO SALES ORGANIZATION

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DIVISION TO SALES ORGANIZATION

SALES AREA OVERVIEW

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SALES OFFICE TO SALES AREA

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SALES GROUP TO SALES OFFICE

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PLANT TO SALES ORG/DISTRIBUTION CHANNEL

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SALES ORDER
Definition: A Sales order is an agreement between company and customer for delivery of goods or services at certain time and on agreed terms. E.g.: Standard sales order OR The Sales area is responsible for execution of sales order on the terms agreed. All Sales documents are created under a sales area.

SALES ORDER (FLOW)

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6. DETAILED IMPLEMENTATION

SAP LOGON Screen

When we double click the SAP logon icon on the desktop the following screen appears which prompts you to logon on following servers
1.

IDES (Internal Demonstration and Evaluation Server):-Purely for educational purposes. Production Server: The checked projects are used here with the live data.

2.

Double click on ides server

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USER AUTHENTICATION CHECK

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Fields entered are:1. User name 2. Password

SAP EASY ACCESS

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The new SAP Easy Access user menu is the user-specific point of entry into the SAP System. The SAP Easy Access screen is where you will start every session, and is the primary user navigation area.

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SAP TRANSACTIONS
For performing any kind of task in the SAP R/3 ERP system, a transaction is used. SAP provides a standard set of transactions to manipulate i.e. insert, update, delete and display data in the system. A transaction code is a four-character command that tells the system location of a task. Each SAP screen has a unique transaction code. In SAP, you can use transaction codes as a shortcut or alternative to using the navigation path to get to a system task.

TRANSACTION CODES SPRO XD01 XD02 XD03 MM01 MM02 MM03 VA11 VA12 VA13 VA21 VA22 VA23 VA01 VA02 VA03 VL01N VL02N VL03N VF01 VF02 VF03 SE16 SE38

DESCRIPTION DISPLAY IMG CREATE CUSTOMER DATA CHANGE CUSTOMER DATA DISPLAY CUSTOMER DATA CREATE MATERIAL DATA CHANGE MATERIAL DATA DISPLAY MATERIAL DATA CREATE INQUIRY CHANGE INQUIRY DISPLAY INQUIRY CREATE QUOTATION CHANGE QUOTATION DISPLAY QUOTATION CREATE SALES ORDER CHANGE SALES ORDER DISPLAY SALES ORDER CREATE OUTBOUND DELIVERY CHANGE OUTBOUND DELIVERY DISPLAY OUTBOUND DELIVERY CREATE BILLING DOCUMENT CHANGE BILLING DOCUMENT DISPLAY BILLING DOCUMENT DATA BROWSER ABAP EDITOR

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ORGANIZATION SETUP
SALES ORGANIZATION Sales Organization the Sales Organization is central organizational element that controls the terms of sale to the customer. Defining the Sales Organization is the foremost step in customizing SD module in SAP. CREATING SALES ORGANIZATION Menu Path: SAP IMG Enterprise Structure Definition Sales and Distribution Define, Copy Delete, Check Sales Organization

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On Choose Activity screen, select Copy, Delete, and Check Sales Organization Double click on it.

On the following screen please provide the From (Source) and To (Target) company code. {In practice please select sales orgn 1000 as source and give a target sales orgn as your own}

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CREATING DISTRIBUTION CHANNEL Menu path: SAP IMG Enterprise Structure Definition Sales and Distribution Define, Copy Delete, Check Distribution Channel Click on Define Distribution Channel New Entries

Create your own Distribution channel and save it

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CREATING DIVISION Menu Path: SAP IMG Enterprise Structure Definition Logistics - General Define, Copy Delete, Check Division Double Click Create own Division by providing Division and name.

Save the inputs.

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CREATING SALES OFFICE Sales office: Geographical aspects of the organizational structures in business development and sales are defined using sales offices. A sales office can be viewed as an actual office or perhaps a territory or region. Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a particular sales area, the sales office must be permitted for that sales area. A sales office can be assigned to more than one sales area. Menu path: SAP IMG Enterprise Structure Definition Sales and Distribution Maintain Sales Office

Save your entries.

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CREATING SALES GROUP: Sales group: Employees of a sales office can be assigned to sales groups defined for each division or distribution channel. Sales groups are assigned to sales offices. Menu path: SAP IMG Enterprise Structure Definition Sales and Distribution Maintain Sales Group

Save entries.

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ASSIGNMENT OF ORGANISATION UNITS

ASSIGNING SALES ORGANISATION TO COMPANY CODE A sales organization is assigned to exactly one company code. Menu path: IMG Enterprise Structure Assignment Sales and Distribution Assign Sales Organization to Company code Assign the created Sales Organization to the Company Code.

ASSIGNING DISTRIBUTION CHANNEL TO SALES ORGN Menu path: IMG Enterprise Structure Assignment Sales and Distribution Assign Distribution Channel to Sales Organization New entries Creates assignment between your Distribution Channel & Sales Organization and save.

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ASSIGNING DIVISION TO SALES ORGANISATION Menu path: IMG Enterprise Structure Assignment Sales and Distribution Assign = Division to Sales Organization New Entries

CREATING SALES AREA A sales area is a combination of sales organization, distribution channel and division. Sales documents, delivery documents, and billing documents are always assigned to a sales area. Every sales process always takes in a specific sales area. Creating Sales Area: Menu Path: IMG Enterprise Structure Assignment Sales and Distribution Setup Sales area

Create assignment between your Sales organizations, Distribution Channel & Division

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If the entry already exists the system will throw a message. If not, please save your assignment . ASSIGNING SALES OFFICE AND SALES GROUP Sales Offices are assigned to Sales Area Menu Path: IMG Enterprise Structure Assignment Sales and Distribution Assign sales office to sales area New Entries

Enter Sales Area {Sales Organization, distribution Channel & Division} & your Sales Office info and save entries. Sales Groups are assigned to Sales Offices: Menu Path: IMG Enterprise Structure Assignment Sales and Distribution Assign sales group to sales office New Entries

Enter created Sales office and sales group info and assign it by saving your entries.

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CREATING MASTER DATA

There are two types of data in SAP: 1. Master data 2. Transaction data 1. Master data:Master data is a collection of information about a person or an object, e.g., a cost object, vendor, or G/L account. For example, a vendor master record contains not only general information such as the vendor's name, address and telephone number, but also purchase order-related information, such as payment terms and delivery instructions. Master data can only be entered and changed by authorized users. These data cannot change frequently and are basic for execution of transaction. e.g.:-Customer Master, Material master, Vendor master etc.Master Data is records that remain in the database over an extended period of time. Examples:
o o

Customer Master Material master

This structure eliminates redundant data and is shared by all SAP Modules. It is a critical aspect of the robustness of the system. TCODE- VS00. 2. Transaction data:Transactional data is data related to a single business event such as a purchase requisition or a request for payment. When you create a requisition, for example, SAP creates an electronic document for that particular transaction. SAP gives the transaction a document number and adds the document to the transaction data that is already in the system. Whenever you complete a transaction in SAP, that is, when you create, change, or print a document in SAP, this document number appears at the bottom of the screen. The following are the transaction data: 1. Sales order 2. Purchase order

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CUSTOMER MASTER DATA

The Customer Master data divided in following categories. General Data: The general data is relevant for sales and distribution and for accounting. It is stored centrally (client specific), in order to avoid data redundancy. It is valid for all organizational units within a client.
Sales Area Data: The sales area data is relevant for sales and distribution. It is

valid for the respective sales area (sales organization, distribution channel, division).
Company Code Data: The company code data is relevant for accounting. It is

valid for the respective company code.

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It includes all necessary data for processing Order, Deliveries, invoices and Cust. Payment General data having on following tab Address: Name, Address, and Language. Control Data: Tax Information Payment Transaction: Bank Details Marketing: Industry, Customer Classification Unloading Point: goods receiving Hours Export Data: Data for export control Contact Person: Address of business partner Sales Area data having following tab pages. Sales: Sales office, sales district, currency, customer group, Customer pricing procedure, Price list. Shipping: Delivery, Shipping condition, Delivery Plant, POD Relevance, Partial delivery-Check Complete delivery by law, Transportation Zone. Billing: Incoterm, Term of payment, Credit control area, Account Assignment Group, Tax. Partner Function: (Can different or Identical) Sold to Party, Ship to Party, Bill to Party, Payer Company Code data having on following tab Account management: Reconciliation account Payment transaction: Payment method Correspondence: Dunning Procedure, Accounting clerk Insurance: Amount Insured Any changes in the customer master do not get reflected in documents created prior to the change except for ADDRESS. Sales organization has to maintain own relevant sales area data if they sell product to customer those belong to different sales organization. Account group controls customer master. Menu Path: SAP Easy Access SAP Menu Logistics Sales and Distribution Business partner Customer Create Complete T Code XD01

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GENERAL DATA Account Group: An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It controls Number ranges and Fields that appears while creation of customer. Select standard account group Sold-to party R/3 0001

CREATE CUSTOMER MASTER DATA

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GENERAL DATA

Enter your company code for e.g. 1000 Enter the defined Sales area E.g. Sales Orgn 1000 Distribution Channel 10 & Division 00 Enter the general data specific to your customer. This data will be created at Client level. Data will be shared by all company code under that client. The data stored will be specific to a Company Code.

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FILLING MANDATORY INFORMATION IN GENERAL DATA

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SALES AREA DATA(BILLING DOCUMENT)

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SALES AREA DATA

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Click on tab Shipping

Enter data relevant for shipping. Delivery Priority, Shipping Conditions & Delivering plant are the fields which will be referenced at various levels of sales order processing. Please ensure input for these fields.

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Click tab Billing Documents

Enter billing relevant details for the customer. Incoterms, Terms of payment and Tax condition are the necessary data. Enter Tax condition as 0.

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Partner functions Tab: Creates all necessary partners associated with this customer.

Enter and save the customer.

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CUSTOMER DISPLAY SCREEN

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DISPLAYING CUSTOMER IN ACCORDANCE WITH COMPANY CODE DATA (ACCOUNT MANAGEMENT)

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COMPANY CODE DATA(PAYMENT TRANSACTIONS)

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COMPANY CODE DATA (CORRESPONDANCE)

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COMPANY CODE DATA (INSURANCE)

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MATERIAL MASTER DATA

All the information to manage a material is stored in a data record in the material master, sort by various different criteria. Different departments in a company, work with the same material, but uses different information on the material.

CREATING MATERIAL MASTER Menu Path: SAP Easy Access SAP Menu Logistics Sales and Distribution Master Data Material Other material Create TCode: MM01 A view screen will pop up on this screen we need to select the tabs that are necessary for creation of a material. Select the views by clicking on it and after selection Click enter. Please Note to create a standard material the following tabs are to be selected,

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Basic Data 1 , Basic Data 2, Classification, Sales: Sales Org. Data 1, Sales Sales Org. Data 2, Sales General/Plant Data, MRP 1, General Plant Data / Storage 1, General Plant Data / Storage 2, Accounting 1 & Accounting 2.

A Material is created under Organization levels Plant, Storage location, Sales Organization & Distribution Channel.

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Provide input for Plant, Storage Location, Sales Organization & Distribution Channel and enter. Understanding material creation screen: Different TAB pages of Material master creation can be seen by clicking onto this next tab icon.

Entering basic data for Material creation: Basic Data1: Enter Material Description, Base Unit of Measure, Gross weight and Net weight of the material..

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Click on Sales Org 2 Tab: Ensure that the entry for Item category group exists at this page. Item category group is an important field to determine respective Item category for a sales order. Goto Sales: General/Plant

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Important fields are: Availability check, Transportation group & Loading Group. Transportation group is a key element in determining the Route & Loading Groups for determination of shipping point at Sales order processing stage. On the MRP1 tab: MRP tab entries will be used to determine the method system uses to work on materials requirement planning

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Save the Material created.

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SALES PROCESS CREATION

SALES DOCUMENT

The sources of data in a sales document are Master data Customizing Other SD document/Existing document with data

In sales order with fast change option you can change Reason for rejection, Delivery block, Billing block, delivery date, delivery priority and Plant. With Mass change option in a sales document list you can change- Plant, Materials, currency and Pricing. An item status is deemed completely if it has rejected by giving a reason of rejection.

DOCUMENT FLOW
A sales process is made up of the sequence of individual process steps, recorded as documents; this process chain is stored in the document flow. You can view all the documents within the document flow in a list; you can branch to individual documents by double clicking and to display of a document and then return to document flow. In status overview in document flow, you can quickly find detailed information about current status of SD process.

INQUIRY AND QUOTATION

Supports Pre-Sales Process. Time Sensitive i.e. Rates are valid for Particular Period. Automatic availability checks pop out.

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Can be used as Reference document.

CREATE INQUIRY

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INQUIRY SAVED

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CREATE QUOTATION
~
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CREATE QUOTATION WITH HEADER DATA

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SAVING QUOTATION

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SALES ORDER

Core of Customer Order Management. Copies the key information from Master Data. Availability Check. MRP (Material Requirement Planning). Pricing (Automatic function). Credit check (For customer). Delivery and Scheduling. Shipping and routing.

CREATE SALES ORDER

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CREATE SALES ORDER WITH REFERENCE TO QUOTATION

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SAVING THE SALES ORDER

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SALES ORDER SAVED

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DOCUMENT FLOW

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DELIVERY OF GOODS
Each outbound delivery starts at a shipping point, continues along a route, and has ship to party as the destination. These elements are header fields in the outbound delivery. Structure Delivery Document

A delivery Document has two level- Header and Item. There is no schedule line. The reason is each schedule line in the sales order can become an item in delivery document.

Outbound delivery monitor

The outbound delivery monitor displays all deliveries that are still to be processed or that have just been processed. You can use the outbound delivery monitor to execute important follow-onfunctions in collective processing in the background ( for example-transfer orde creation for picking, or posting of goods issue).

Each outbound delivery starts at a shipping point, continues along a route, and has ship to party as the destination.

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CREATE OUTBOUND DELIVERY WITH ORDER REFERENCE

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DELIVERY CREATE

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DELIVERY SAVED

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TRANSFER ORDER

A transfer order is an instruction to move material from a source storage bin to a destination storage bin within a warehouse complex. The transfer order include the information like-material number, quantity to be moved, source and storage bin. With WM precise inventory management at the level of the storage bin is possible and used for warehouse with random storage. This is not possible with lean WM and hence suitable for fixed bin warehouse.

You can Group Transfer order based on the warehouse number.

CREATE TRANSFER ORDER

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TRANSFER ORDER SAVED

CHANGE OUTBOUND DELIVERY

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DELIVERY CHANGE OVERVIEW

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DELIVERY SAVED

POST GOODS ISSUE (PGI)

Reduce warehouse stock Post the value change to the stock accounts in inventory accounting Enter status information in the outbound delivery. Reduce delivery requirement. Is store in document flow and update status of preceding document Create work list for billing.

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DOCUMENT FLOW

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BILLING
A Billing document has two levels-Header and Item When you create a billing document in account, the R/3 system carries out a debit posting on the customer receivables account and a credit posting on the revenue account. An important part of billing is the interface to financial accounting. This allows documents to be creating automatically in financial accounting and controlling when you create billing documents.

The data, which can be changed before an accounting document created: Billing date, pricing, account determination, output determination. After posting accounting you can change only output data.

You might not want the data to be transferred automatically for certain billing types. In that case you can set a posting block for the billing type concerned.

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CREATE BILLING DOCUMENT

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BILLING DOCUMENT SAVED

DOCUMENT FLOW

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ISSUING BILLING DOCUMENT

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CHANGE BILING DOCUMENT

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FINAL INVOICE

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7. CONCLUSION

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In sales process the product are sold or sent to the business partners (customer) or services are performed for them. Data about the material and services as well as about the business partner is the basis for sales processing. The sales department accepts the sales order from the customer i.e. they are generating sale document, which is not an individual set or documents but forms a chain of inter-related document. it includes: The sales departments in a company record a customers inquiry. The customer next requests a quotation which then create by referring to the inquiry. The customer later places on order on the basis of quotation Then the organization ships goods and bills the customer After delivery of the good, the customer claims credit for some damaged goods. The company creates a free of charge delivery with reference

The entire chain of documents inquiry, quotation, sales order , deliver, invoice and the subsequent delivery free of change- creates a document flow. The flow of data from one document into other reduces manual activity and makes problem resolution easier. The inquiry and quotation management parts of the sales information system help to plan and control sales.

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FUTURE SCOPE
SAP is the most growing technology. Almost all the large scale enterprises use SAP. SAP is entirely designed for enterprise; it provides complete integration of all the areas of the business/company/enterprise. Sales and Distribution is the important area for any company. Customers are the primary concern of every organization, so to provide them right services at right time, sales process is very crucial. This is the module which interacts with the customers. In future, Sales and Distribution module will have lot of demand, as many small scale and medium scale companies are also switching to SAP.

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ANNEXURE
SAP screen has seven main areas: Screen Header, Menu Bar, Standard Toolbar, TitleBar, Application Toolbar, Screen Body, and Status Bar.

1) Screen Header: The Screen Header displays the name of the current system, session, and client you are working in. On a PC it displays standard Window buttons such as minimize, maximize, and close.

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2) Menu Bar: The Menu Bar contains menus for the functional and administrative areas of the system. 3) Standard Toolbar: The Standard Toolbar contains the Command field and the standard SAP Toolbar buttons. Command Field The Command field is used to enter transaction codes that take you directly to a system task without using menus. Sometimes the Command field is closed by default. To open it, click the arrow to the left of the Save button. To use it, type the transaction code in the blank field to the left and press Enter. Standard Toolbar Buttons The SAP buttons displayed on the Toolbar provide quick access to commonly used SAP functions. If a Toolbar button is gray, it is not available for use on that particular screen.

BUTTON

KEYBOARD SHORTCUT ENTER KEY CTRL S F3 SHIFT F3 F12 CTRL P CTRL F ALT F12

DESCRIPTION ENTER/CONTINUE SAVE BACK EXIT SYSTEM TASK. CANCEL PRINT FIND CUSTOMIZE LOCAL LAYOUT.

BUTTON

KEYBOARD SHORTCUT CTRL G F1 CTRL PAGE UP PAGE UP PAGE DOWN CTRL PAGE DOWN

DESCRIPTION CONTINUE SEARCH HELP

SCROLL TO TOP OF DOCU SCROLL UP ONE PAGE.

SCROLL DOWN ONE PAG.

SCROLL TO LAST PAGE O CREATE NEW SESSION.

(PC ONLY)

NONE

(PC ONLY)

4) Title Bar: The Title Bar displays the name of the screen you are working in. 5) Application Toolbar: The Application Toolbar is located directly below the screen title. It contains buttons that duplicate functions available from the menu bar but provide quicker access to some of the most commonly used functions for the current screen and system task.

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6) Screen Body: On the SAP User Menu screen and the SAP Standard Menu screen, the screen contains are the navigation area and the non-active work area. In an SAP transaction screen, the screen body contains only the work area and has entry fields in which you can enter, change, or display information to accomplish your system task. SAP has three field types, Required, Default, and Optional: Required Entry fields are usually flagged with a question mark. You must enter data in Required Entry fields in order to proceed with a system task. Default Entry fields already have a system entry. However, you may be able to overwrite the system entry depending on the system task and / or your SAP profile. Optional Entry fields are those in which you may enter data, but an entry is not required by the system in order to proceed with a system task. Some Optional Entry fields may become required depending on the values entered in other fields. 7) Status Bar: The Status Bar, located at the bottom of the SAP screen, displays system messages and other session information.

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REFERENCES USED AND BIBLIOGRAPHY

BOOKS: SAP SD ( FUNCTIONALITY AND TECHNICAL CONFIGURATION) BY MARTIN SAP ONLINE LIBRARY HELP

WEBLINKS: www.sap.com www.sapinfo.com www.sapzone.com www.sap-img.com www.sapgenei.com www.help.sap.com

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