SAP SD Module Core-User Training

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OBJECTIVES OF CORE TEAM TRAINNING

1) Understanding SAP Sales & Distribution
Basic Concepts
2) Understanding SAP Sales & Distribution
Master DATA
3) Understanding SAP Sales & Distribution
Sample Transactions

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SALES
&
DISTRIBUTION
AN OVERVIEW

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CONTEXT
COURSE CONTENT

Preface
Unit1

Enterprise Structures in Sales and Distribution

Unit2

Overview of Sales Processes

Unit3

Master Data in Sales and Distribution

Unit4

Sales order

Unit5

Delivery

Unit6

Transportation

Unit7

Billing

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UNIT 1

ENTERPRISE STRUCTURES

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Organization Structure
Organization

SD/Business
Development

Client
Client
CompanyCode
Code
Company

CompanyCode
Code
Company

SalesOrganization
Organization
Sales

SalesOrganization
Organization
Sales

DistChannel
Channel
Dist

DistChannel
Channel
Dist

Division
Division
Salesoffice
office
Sales

Division
Division
Salesoffice
office
Sales

SalesGroup
Group
Sales

SalesGroup
Group
Sales

SalesRep
Rep
Sales

SalesRep
Rep
Sales
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Definitions
Company code
Smallest organizational unit for which individual financial statements can
be drawn up according to the relevant commercial law.

Sales organization
Organizational unit structures the company according to its sales
requirements. A sales organization is responsible for selling materials and
services.

Distribution channel
The distribution channel represents the channel through which salable
materials or services reach customers. Typical distribution channels
include wholesale, retail and direct sales.
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Definitions (contd.)
Division
The division represents a grouping materials, products, or services.

Sales Office
A physical location (for example, a branch office) that has
responsibility for the sale of certain products or services within a
given geographical area.

Sales Group
A group of sales people who are responsible for processing sales of
certain products or services.

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Definitions (contd.)
Sales Representative
The sales person responsible for sales .

Plant
A plant is a place where either materials are produced, or goods and
services are provided.

Storage location
A storage location is the place where stock is physically kept within a
plant.
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Definitions (contd.)
Shipping point
The shipping point is the part of the company responsible for the type
of shipping, the necessary shipping materials and the means of
transport.

Loading point

Place within a shipping point where goods are loaded.

Transportation planning point

The transportation planning point is responsible for planning shipments
with particular features. A shipment is assigned to one transportation
planning point.
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10

Definitions (contd.)
Business Area
A unit in an enterprise, grouping product and market combinations as
homogeneously as possible for the purpose of developing unified
business policy.

Sales Area

The combination of sales organization,distribution channel and division is

called sales area.

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11

ENTERPRISE STRUCTURE
COMPANY

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12

ENTERPRISE STRUCTURE
ORGANIZATIONAL UNIT

COMPANY CODE

SALES AREA
- SALES ORGANIZATION

- DISTRIBUTION CHANNEL
- DIVISION

PLANT

STORAGE LOCATION

SHIPPING POINT

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13

ENTERPRISE STRUCTURE
SALES AREA

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ENTERPRISE STRUCTURE
PLANT,STORAGE LOCATION,SHIPPING POINT

DELIVERING
PLANT1

DELIVERING
PLANT2

STORAGE
STORAGE
LOCATION
LOCATION

SHIPPING
SHIPPING
POINT
POINT

SHIPPING
SHIPPING
POINT
POINT

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15

UNIT 2

OVERVIEW OF SALES PROCESSES

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16

SALES PROCESSES
Sales
Salesactivity
activity

Sales

Inquiry
Inquiry

Quotation
Quotation

Contract
Contract

Scheduling
Scheduling
agreement
agreement

Debit
Debitnote
note

SALES

Sales
Sales
Order
Order
Order with ref.
Quotation
Contract
Sales Order

Collect
CollectPayment
Payment

Delivery
Delivery/ /
Dispatch
DispatchGoods
Goods

Credit
Creditnote
note
Sales
Sales
Invoice
Invoice

Shipment/
Shipment/
Transportation
Transportation

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17

SALES PROCESSES
Sales process

Sales office
Inquiry Creation
Quotation Creation
Receive Order from Customer
Creation of Sales order

Transfer of Requirements to Plant

Goods Dispatch/Transportation
Sales Invoice Creation
Payment
collection
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SALES PROCESSES
SALES INQUIRY / QUOTATION
1.Customer Code

2.Validity
3.Description of material
4.Quantity required
5.Offered Price

2
6
4

6.Required delivery date

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19

SALES PROCESSES

Master Contract
Quantity Contract
Value Contract

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20

SALES PROCESSES
The master contract is a document under which
you can group contracts as lower
level contracts. It contains the general terms
which apply for all the lower level
contracts over a specified period. You can group
Value, Quantity and Service contracts under
Master Contract.
Structure
A master contract contains only header data. In
the master contract, you can record:
Business data
Partner data
Contract data
Billing plan data

MASTER CONTRACT

Quantity
Quantity
contracts
contracts

Value
Value
contracts
contracts

Master
Contract

Service
Service
contracts
contracts

Referencing Procedure
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21

SALES PROCESSES
QUANTITY CONTRACT

A quantity contract is an agreement that

your customer will order a certain quantity
of a product from you, during a specified
period.
The contract contains basic quantity and
price information, but no schedule of
specific delivery dates and quantities
The customer fulfills a contract by placing
sales orders against it.
These sales orders are known as release
orders

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22

SALES PROCESSES
VALUE CONTRACT

Value Contract

A value contract is a legal agreement

with a customer, which contains the
materials and services, that the
customer should receive within a
specified time period, and for a
specified target value.
A value contract can contain certain
materials or a group of materials
(product hierarchy, assortment module).

WK2
Configurable
Material

WK 1
Product hierarchy /
Assortment Module

Release Orders

Billing

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23

SALES PROCESSES
SCHEDULING AGREEMENTS

Sched. Agreement

A customer scheduling agreement is an

outline agreement with the customer
containing delivery quantities and dates.
These are then entered as schedule lines in a
delivery schedule. You can either create
schedule lines when you create the
scheduling agreement or you can create them
later.
You fulfill a scheduling agreement by creating
the deliveries in the schedule as they become
due. You process deliveries for a scheduling
agreement in exactly the same way as you
process a normal delivery. After you have
carried out the delivery, the system updates
the Delivered quantity field in the scheduling
agreement item with the delivery quantity.

Deliveries
Deliveries
Deliveries

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24

SALES PROCESSES
SALES ORDER PROCESSING

A Standard order normally contains

Customer and material information

Pricing conditions for each item

Delivery dates and quantities

Shipping information

Billing information

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25

SALES PROCESSES
INVENTORY SOURCING

In this process the following things can be done :

check the availability of the ordered goods

publish the demand in materials planning

Materials planning (MM) organizes and monitors the actual procurement

process.

This includes the products that are :

in-house produced

externally procured

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26

SALES PROCESSES
SHIPPING

Shipping processing supports

Creating outbound deliveries

Picking

Packing

Posting the goods issue

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27

SALES PROCESSES
BILLING
Billing supports :

Creating invoices for products/services

Creating credit and debit memos

Canceling previously posted billing documents

Automatically transferring billing document data to accounting

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28

SALES PROCESSES
PAYMENT

Payment is a process, that is a part of Financial Accounting

Payment supports

Posting payments against invoice

Reviewing differences

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29

UNIT 3

MASTER DATA

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30

MASTER DATA
CUSTOMER
MASTER
MATERIAL
MASTER

PRICE
MASTER
TAX
MASTER

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31

CUSTOMER MASTER DATA

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32

CUSTOMER MASTER
CUSTOMER TYPES & FUNCTIONS

CUSTOMERS

VENDORS

PERSONNEL

Sales prospects
Contact persons
Sales partners
Customer hierarchy
Competitors

Forwarding agents
Transporters

Sales personnel

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33

CUSTOMER MASTERS
SALES PARTNERS
Sold to Party
(client)

Payer
CONTACT
CONTACT
PERSON
PERSON

FORWARDING
FORWARDING
AGENT
AGENT

CUSTOMER

Bill to Party

CONTACT
CONTACT
PERSONS
PERSONS

.
.

Ship to Party
(consignee )

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34

CUSTOMER MASTER
STRUCTURE

General data

Company code data

Customer number
Name
Address
Control Data

Account management data

Payment Transactions
Correspondence

Customer XYZ

Sales & distribution Data

Pricing data
Delivery priority
Shipping conditions
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35

CUSTOMER MASTER
GENERAL DATA
ADDRESS : name , address , language .

CONTROL DATA : tax information ..

PAYMENT TRANSACTIONS : Bank details ...

MARKETING : industry , customer classification .

UNLOADING POINT : goods receiving hours ..

EXPORT DATA : data for export control ..

CONTACT PERSON : address of business partners ,...

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36

CUSTOMER MASTER
COMPANY DATA

ACCOUNT MANAGEMENT : reconciliation account ,...

PAYMENT TRANSACTIONS : payment methods , payment blocks ,..

CORRESPONDANCE : dunning procedure , acct. clerk ,.

INSURANCE : amount insured , ...

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37

CUSTOMER MASTER
SALES AREA DATA

ORDERS : sales office , currency , sales district , price group ,.

SHIPPING : shipping condition , delivering plant , transportation zone ,...

BILLING DOCUMENT : output tax classification , terms of payment ,...

PARTNER FUNCTIONS : ship-to-party , bill-to-party , payer .

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38

CUSTOMER MASTER
VIEWS

Address

Control data

$$$$

Sales

Customer
Master Record

Shipping

Marketing

Billing

Contact Person

Output

Accounting Info

Partner Function

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39

CUSTOMER MASTER
ACCOUNT GROUPS
One-Time
One-Time
Customer
Customer

Customer
Customer

Employee
Employee
Payroll
Payroll

Internalor
orExternal
External
Internal
NumberAssignment
Assignment
Number

AccountGroup
Group
Account

Internal
Internal
customer
customer

FieldSelection
Selection
Field

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40

CUSTOMER MASTER
CUSTOMER HIERARCHY
Regional office
Asia Pacific

Country office
India

Singapore

Nepal

Sales office
Maharashtra

Bihar

Kerala

Branch
Mumbai

Pune

Nagpur

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41

CUSTOMER MASTER
Maintain
MaintainCustomer
Customer
Master
MasterRecords
Records

Create
CreateNew
NewCustomer
CustomerMaster
MasterRecord
Record

Extend
ExtendaaCustomer
CustomerMaster
Mastertotoreflect
reflect
different
organizational
levels/profiles
different organizational levels/profiles
Monitor
Monitorexisting
existingCustomer
CustomerMaster
MasterRecords
Recordsby
by
changing,
extending
or
deleting,
or
changing
changing, extending or deleting, or changing
material
materialtype
typewhen
whennecessary
necessary
Create
Createnew
newCustomer
Customertypes,
types,ififrequired
required
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42

CUSTOMER MASTER
ONE TIME CUSTOMER

Used for the Invoice of low value infrequently used customers

Used to collect payment for which no customer master exists

The account group CPD (account group for one-time customers) is automatically
proposed which helps to restrict the number of screens to Address, Sales ,
Shipping , Billing Documents and Output

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43

PRODUCTS & SERVICES

MASTER

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44

PRODUCTS & SERVICES

PRODUCTS :
Material
Item Proposal
Material Determination
Cross Selling
Listing / Exclusion
Contracts
Batch Management
Serial Numbers

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45

PRODUCTS & SERVICES

MATERIAL TYPES

Materials with the same basic features are grouped together and assigned to the
same material type

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46

PRODUCTS & SERVICES

MATERIAL TYPES
FERT

= Finished good(s)

HAWA

DIEN

= Service(s)
VERB

NALG

= Trading materials

= Packaging
materials

= Non-stock
materials
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47

PRODUCTS & SERVICES

INDUSTRY SECTOR
Mechanical engineering

Chemical

Plant engineering and construction

Pharmaceutical

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48

PRODUCTS & SERVICES

MATERIAL MASTER RECORDS
General data
Material number
Description
Units of Measure
Technical data

Plant-specific data
MPR type
Planned deliver time
purchasing group
batch indicator

Sales-Specific
data
Delivering plant
Sales texts

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49

PRODUCTS & SERVICES

SALES VIEWS
Sales 1

Basic data and units of measure

(e.g. sales units, order quantities)

Sales 2

Grouping Items: Mat. Stat. Group ,

Item cat. Group, Product hierarchy

Tax data

Material Groups

Quantity Stipulation

Products attributes

Sales : General / plant

Units of measure, Availability

Sales text

Basic data and units of measure

Check, Batch Management

(e.g. sales units, order quantities)

Shipping data

Tax data

Packing Material data

Quantity Stipulation
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50

PRODUCTS & SERVICES

UNITS OF MEASURE

Base unit: Piece

72
4

Box

12

Crate Pallet

(unit of issue)

(order unit)

(Sales unit)

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51

PRODUCTS & SERVICES

DELIVERING PLANT

The delivering plant refers to the plant from which the goods are to be delivered
to the customer, within a specific sales organization and distribution channel. The
plant can be automatically proposed by the system when processing a sales
order, if it has been maintained in one of the master records. It can be derived
from :
the Customer / Material info record
the Customer Master record of the ship-to party

the Material Master record.

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52

PRODUCTS & SERVICES

NUMBER ASSIGNMENT FOR MATERIAL MASTER

The material number can either be entered externally by the user, or assigned
internally by the system. Both internal and external number assignment is
possible. If you do not enter a material number when creating a material master
record, the system automatically carries out internal number assignment.

EG :- FINISHED GOODS

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53

PRICE MASTER DATA

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54

PRICE MASTER
PRICING MASTER

CONDITIONMASTER
MASTERDATA
DATA
CONDITION

PRICES
PRICES
Materialprice
price
Material
Pricelist
list
Price
Customerspecific
specific
Customer
Other
Other

FREIGHTS
FREIGHTS
Freightincoterms
incoterms1+2
1+2
Freight
Other
Other

SURCHARGE/ /DISCOUNTS
DISCOUNTS
SURCHARGE
Customer
Customer
Material
Material
Pricinggroup
group
Pricing
MaterialPricing
Pricinggroup
group
Material
Customer/ /Material
Material
Customer
Cust./ /Material
Materialpricing
pricinggroup
group
Cust.
Pricinggroup
group
Pricing
Mat.Pricing
Pricinggroup
group
Mat.
TAXES
TAXES
Value-addedtax
tax
Value-added
Jurisdictionaltaxes
taxes
Jurisdictional
Other
Other

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55

PRICE MASTER
CONDITION MASTER

CONDITIONMASTER
MASTERDATA
DATA
CONDITION

Condition type
PR00
Sales organization
1000
Distribution channel
10
Customer
2300
Material
1400-100
Validity-Jun to Oct

Validity-Dec

From 1000 UNI 1-% From 1000 UNI 4-%

From 2000 UNI 2-% From 2000 UNI 5-%
From 3000 UNI 3-% From 3000 UNI 6-%

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56

PRICE MASTER
PRICING IN SALES ORDER
SALES ORDER ITEM
CONDITION TAB PAGE
MATERIAL
QUANTITY

CONDITIONMASTER
MASTERDATA
DATA
CONDITION

PRICES
SURCHARGE
DISCOUNTS
FREIGHT
TAXES

AUTOMATIC
AUTOMATIC
PRICING
PRICING

1400-100
20 pieces

GROSS

1300

DISCOUNT

130-

FREIGHT
NET
OUTPUT TAX
TOTAL

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30
1200
120
1320

57

UNIT 4

SALES ORDER

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58

SALES ORDER

Order types

Item category

Schedule line category

Proposed Delivery dates

Automatic Pricing

Availability check

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59

SALES ORDER
Order type
The sales document type determines how the system processes the sales document.
Example: Standard order, Branch order, Return order etc.

CREDIT/DEBIT
REQUEST
CONSIGNMENT
FILL-UP

RETURNS

STANDARD
ORDER

SALES DOCUMENT
TYPES

FREE OF
CHARGE
DELIVERY

CONTRACT

CASH SALE

RUSH ORDER

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60

SALES ORDER
Item category
A classification that distinguishes between different types of item (for eg, free of
charge items and text items) and determines how the system processes the item.

Control Elements in Item Categories

Relevant for Delivery

Relevant for Billing

Relevant for Pricing

Relevant for Return Billing Block

Credit Management

Cost Determination

Schedule Lines Allowed

Variant Configuration
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SALES ORDER
Schedule line category
Subdivision, according to date and quantity of an item, in a sales document.

Item category
Movement Type

Delivery Block
Account assignment category
Transfer of requirement
Availability
Incompletion

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62

SALES ORDER

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P

SALES PRICING

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63

SALES ORDER
pe
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t
on
ble
Condition Ta onditi
c

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Pric

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PRICIN
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pr o

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64

SALES ORDER

d
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o
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c
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Pricing Keywords

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Condition
ConditionTechnique
Technique
Condition
ConditionType
Type
Condition
ConditionTable
Table

Pricing
PricingProcedure
Procedure
Pricing
Pricingprocedure
procedureassigned
assignedto
to customer
customer
Document
DocumentPricing
Pricingprocedure
procedure
Condition
ConditionRecords
Records

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SALES ORDER
Condition technique

d
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s
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c
c
e
A enc
u
q
e
s
The following figure illustrates the relationships between elements of the
condition technique.

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66

SALES ORDER
Condition type
A condition type is a representation in the system of some aspect of your
daily pricing activities.
For example, you can define a different condition type for
each kind of price, discount or surcharge that occurs in your
business transactions.
Type

Description

PR00
PR00

Material
MaterialBasic
BasicPrice
Price

K007
K007

Customer
CustomerDiscount
Discount

K029
K029

Material
MaterialGroup
GroupDiscount
Discount

Control

Calculationtype:
type: Percentage
Percentage
Calculation
Scalebase
basetype:Quantity
type:Quantityscale
scale
Scale

Calculationtype:
type: Gross
Grossweight
weight
Calculation
Salebase
basetype:
type: Gross
Grossweight
weightscale
scale
Sale
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SALES ORDER
Condition table
A condition table defines the combination of fields (the key) that identifies an
individual condition record. A condition record is how the system stores the
specific condition data that you enter in the system as condition records.
.

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SALES ORDER
Access sequence
An access sequence is a search strategy that the system uses to find valid data
for a particular condition type.

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SALES ORDER
Pricing procedure
The primary job of a pricing procedure is to define a group of condition types in a
particular sequence. The pricing procedure also determines:

Document
Document

PricingProcedure
Procedure
Pricing
Pricing
1.1. Pricing
Discount11
2.2. Discount
Discount22
3.3. Discount

PR00
PR00
K005
K005
K007
K007

ConditionType:
Type: PR00
PR00
Condition
AccessSequence:
Sequence: PR00
PR00
Access
AccessSequence:
Sequence: PR00
PR00
Access
Customer/material
1.1. Customer/material
PriceList/currency/material
List/currency/material
2.2. Price
Material
3.3. Material
Recordsfor
forCondition
ConditionType
TypePR00
PR00
Records
Novalid
validrecord
recordexists
exists
No
Validrecord
recordexists
exists
Valid

Item10
10
Item
PR00
PR00
K005
K005
K007
K007

1200
1200
1100
1100
1000
1000

Price
Price
Discount11
Discount
Discount22
Discount

120PC
PC
120
RS1100
RS1100
112-%
%
2-

RSfrom
from 11
RS
RSfrom
from 100
100
RS
RSfrom
from 200
200
RS
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PCup
up
PC
PCsup
up
PCs
PCsup
up
PCs
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SALES ORDER
Availability Check
Availability check will help you to confirm the delivery of the goods for the
required delivery date, if the goods are available for all the necessary processing
activities, which take place before delivery.
Types of availability check:
Check on the basis of the ATP quantities
Check against product allocation
Check against planning

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SALES ORDER
Scope of availability check
Stock
Safety stock
Stock in transfer
Quality inspection
Blocked stock
Inward / Outward movement of goods
Purchase orders
Purchase requisitions
Planned orders
Production orders
Reservations
Dependent reservations
Dependent requirements
Sales requirements
Delivery requirements
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SALES ORDER
Results of availability check
If the goods ordered by the customer are not available on the requested date, the
system branches automatically during sales document processing to following
Availability controls:
One-time delivery on the requested delivery date
Complete delivery / Partial delivery
Availability across plants

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SALES ORDER
Transfer of requirements
During transfer of requirements, material requirements planning is informed of
quantities which sales & distribution require to deliver against orders
received.
If sufficient quantities are not available to cover the requirements,
purchase orders, for example, can be created in purchasing on the basis of
transfer of requirements within automatic planning.
Types of transfer of requirements :
Transfer of requirements with individual requirements
Transfer of requirements with collective requirements

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SALES ORDER
Control elements for Transfer of requirements
Requirements
Requirementstype
type
Requirements
RequirementsClass
Class
Checking
Checkinggroup
group
Schedule
Scheduleline
linecategory
category
Strategy
Strategygroup
group
MRP
MRPgroup
group
Planning
PlanningStrategy
Strategy
MRP
MRPtype
typeand
anditem
itemcategory
category

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SALES ORDER
Prerequisite for Transfer of Requirements
Transfer of requirements can be performed if the following
prerequisites have been met:
The control elements described above must be maintained in
Customizing for Sales and the relevant assignments made to
the sales transactions
The transfer of requirements must be switched on at requirements
class level and, in the case of transfer of requirements in the
sales documents, at schedule line level
A plant must be defined at document item level. This plant is
either proposed from the material master record or you can
enter it manually
A checking group must be defined in the material master
record on the Sales / Plant data screen in the Availability
check field
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SALES ORDER
SALES ORDER STRUCTURE:HEADER
The following sections contain information on controlling the different sales document
types. The sales document types represent the different business transactions in
sales, such as inquiry processing, quotation processing, consignment stock
processing.
In addition to the definition and control of the sales document types themselves, you
must also take the following settings into account:

language conversion
number ranges
screen sequence groups
field selection per document header
blocks per sales document type
purchase order types
reasons for rejection
usage indicators
Assignments to the various organizational units
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SALES ORDER
SALES ORDER STRUCTURE : ITEM
The sales document types represent the different business transactions in
Sales and perform a central controlling function for the entire sales order
process. The definition and configuration of sales document types can be
divided into three parts:
Definition of the sales document types themselves (for example,
standard order OR)
Definition of additional sales document functions (for example, number
ranges)
Configurations for general sales and distribution functions (for
example, pricing)

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SALES ORDER

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SALES ORDER
MAKE -TO-STOCK (AVAILABLE)

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SALES ORDER
MAKE -TO-STOCK (SHORTAGE)

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SALES ORDER
SALES (MAKE- TO- ORDER)
SD

MM / PP
Customer requirements

ORDER

MATERIALS
PLANNING
PRODUCTION

DELIVERIES
GOODS RECEIPT
SALES ORDER
STOCK

GOODS ISSUE
Reduced sales order stock
BILLING

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SALES ORDER
RETURN ORDER (WARRANTY SALES)
QUALITY INSPECTION
STOCK

RETURN ORDER (IN)

(with reference
to original
billing document)

RETURN
DELIVERY (IN)

SCRAP STOCK

OR

CREDIT MEMO
REQUEST

FREE OF CHARGE
DELIVERY ORDER
(with reference to
return order)

FREE OF
CHARGE
DELIVERY

CREDIT MEMO
BILLING
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SALES ORDER
FREE OF GOODS (SAMPLE SALE)

FREE OF CHARGE
DELIVERY ORDER

FREE OF
CHARGE
DELIVERY

BILLING

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UNIT5

DELIVERY

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DELIVERY PROCESS
SHIPPING

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DELIVERY
PRE REQUISITE FOR A DELIVERY

The schedule line must be due for shipping on the specified date.

The schedule line should not be blocked for delivery.

The items in the order must be fully processed

The product status of the material must permit delivery

Sufficient quantity of the material must be available

There cannot be a delivery block at header level.

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DELIVERY
STEPS IN DELIVERY

Picking is done through a picking list generated by the system

Physical Packing is done as per packaging policy of the company
and the Customer requirements
Goods Issue ensures that stock is reduced from the inventory as
per delivery quantity.
Delivery Note is printed from the system

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DELIVERY
STRUCTURE OF DELIVERY DOCUMENT

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DELIVERY
DELIVERY STATUS

In Complete delivery the entire sales order item quantity is delivered against a
single delivery. The status of the particular item is shown as Fully Delivered
after the delivery is created.

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DELIVERY
DELIVERY STATUS

In Partial Delivery, Sales Order Item quantity is split number of deliveries.

After the first Delivery the Item Status is shown as partially delivered.

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DELIVERY
DELIVERY STATUS

In order combination , More than one order is combined to make single delivery.
In this case the Delivery may be either of partial or fully delivered.

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DELIVERY
STATUS UPDATION

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DELIVERY
GOODS ISSUE DOCUMENT OVERVIEW

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DELIVERY
GOODS MOVEMENT
For most goods movements, two documents are created

Material

Accounting

Trial Balance
Dr

Cr

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DELIVERY
GOODS MOVEMENT
Standard Movement Codes

601

Goods Issue
651
Goods Returned
453
Stock added to inventory
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DELIVERY
DELIVERY TYPES

Various delivery types are provided in SAP R/3 to deal with the different kinds
of business transactions necessary for delivery processing. In the
standard version of the SAP System, some of the delivery delivery types are:
Outbound deliveryLF
Returns delivery

LR

Replenishment delivery

NL

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DELIVERY
STEPS IN DELIVERY
PICKING
The picking process involves taking goods from a storage location and staging the
right quantity in a picking area where the goods will be prepared for shipping.

GOODS ISSUE
As soon as the goods leave the company, the shipping business activity is finished.
This is illustrated using goods issue for outbound deliveries.
Goods Issue in a Delivery affects following areas :Updates sales order history
Accounting entries made at time of Goods Issue
Inventory reduced by the extent of delivery quantity
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DELIVERY
SHIPPING MATERIALS

Shipping materials are materials used for packing or transporting products. When
packing an item, One must always specify a shipping material. Some of the
possible Shipping Materials are :-

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DELIVERY
DELIVERY ITEM CATEGORY

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DELIVERY
EXAMPLES OF DELIVERY SCENARIO

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UNIT6

TRANSPORTATION

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TRANSPORTATION
DEFINITION
Transportation is an essential element in the logistics chain. It affects both
incoming and outgoing goods.

INTEGRATION

Incoming shipments in Materials Management based on purchase orders and

shipping notifications

Outbound shipments in Sales and Distribution based on sales orders and

deliveries

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TRANSPORTATION
INTEGRATION
The graphic below illustrates this process:

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TRANSPORTATION
FEATURES
The transportation component includes basic transportation processing functions:

Transportation planning and shipment completion

Shipment costs calculation
Shipment costs settlement
Shipment costs calculation for individual customers
Billing of customer freight
Service agent selection
Management of means of transport and utilities
Follow-up and supervision of shipments
Management of shipment costs

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TRANSPORTATION
TRANSPORTATION PLANNING POINT

Transportation planning point is an organizational unit which determines the

transportation planning and shipment completion.

Each shipment is assigned to a specific transportation planning point for

transportation planning and shipment completion.

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TRANSPORTATION
SHIPMENT TYPES
The shipment type contains all the important control features for a shipment,
such as the number range, whether the shipment is inbound or outbound, how
leg determination is performed, and which leg indicator has been set for a
shipment of this type.

The system supports the following shipment types:

Individual shipment
Collective shipment
Transportation chain

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TRANSPORTATION
INDIVIDUAL SHIPMENT
An individual shipment includes
One or more deliveries
One point of departure
One destination
One mode of transport
Delivery 1
Delivery 2

CUSTOMER

SHIPPING POINT

One Transportation Leg

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TRANSPORTATION
COLLECTIVE SHIPMENT
A collective shipment includes
One or more deliveries
Several points of departure
Several destinations
One mode of transport
Delivery 1
Delivery 2

SHIPPING PT

Delivery 2

CUSTOMER 1

CUSTOMER 2

Two Transportation Legs

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TRANSPORTATION
TRANSPORTATION CHAIN
A transportation chain is useful if you are dealing with deliveries that will be
transported using multiple modes of transportation.

Delivery 1

SHIPPING POINT

Delivery 1

Delivery 1

PORT OF
DEPARTURE

PORT OF
DESTINATION

CUSTOMER

Three Transportation Legs

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TRANSPORTATION
SHIPMENT DOCUMENT
The shipping document is the central element of transportation planning and shipment
completion. It contains all the information necessary for carrying out transportation.
Shipment documents can be used to:
Combine deliveries into one inbound or outbound shipment
Specify shipment stages
Legs
border crossing points
load transfer points
Assign goods to handling units
Assign service agents
Specify planned transportation deadlines
Record actual transportation deadlines
Specify output required for transportation (such as shipping papers or EDI messages)
Define transport-relevant texts

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TRANSPORTATION
INFORMATION IN SHIPMENT DOCUMENT

Combine deliveries into one inbound or outbound shipment

Specify shipment stages

Legs

Border crossing points

load transfer points

Assign goods to handling units

Assign service agents

Specify planned transportation deadlines

Record actual transportation deadlines

Specify output required for transportation (such as shipping papers or EDI

messages)

Define transport-relevant texts

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TRANSPORTATION
FREIGHT CODE DETERMINATION

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TRANSPORTATION
FREIGHT CLASS
A freight class is a group of freight codes used to calculate shipment costs.
The following illustration is an example of how freight code set, freight code and
freight class are interrelated.

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TRANSPORTATION
DELIVERY SPLIT IN SHIPMENTS
During shipment processing it is often necessary to split a delivery up into two or
more shipments because they do not all fit on to one truck, for example.

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TRANSPORTATION
AUTOMATIC LEG DETERMINATION
Leg determination category 1 generates a sequence of locations that links
together the departure points and destinations for the deliveries without gaps.

PUNE

MUMBAI

Preliminary leg
Delivery1, 2

DELHI

Main leg
Delivery1, 2, 3

SHIMLA

PUNJAB

Subsequent leg
Delivery 2, 3

Preliminary leg
Delivery 3

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TRANSPORTATION
AUTOMATIC LEG DETERMINATION
This type of leg determination forms a preliminary leg for each point of departure
and a subsequent leg for each destination point. It can be used if a transportation
chain is to be set up within a shipment document.
AKURDI
Preliminary leg
Delivery1
Preliminary leg
Delivery2
MUMBAI

MUMBAI

SINGAPORE

Main leg
Delivery1, 2

TAIWAN

Subsequent leg
Delivery1, 2

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TRANSPORTATION
AUTOMATIC LEG DETERMINATION
This type of leg determination forms a preliminary leg for each point of departure
and a subsequent leg for each destination point. It can be used if a transportation
chain is to be set up within a shipment document.
TAIWAN

AKURDI
Preliminary leg
Delivery1
Preliminary leg
Delivery2
MUMBAI

MUMBAI

SINGAPORE

Subsequent leg
Delivery1
Subsequent leg
Delivery2

Main leg
Delivery1, 2
MALAYSIA

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TRANSPORTATION
SHIPMENT COST
An object in which the shipment cost-related data are combined. The shipment
cost document allows you to refer to parts of the shipment document for which
shipment costing must be carried out separately.

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TRANSPORTATION
SHIPMENT COSTING

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TRANSPORTATION
FREIGHT COST ESTIMATE
Using this function, the transportation planner can execute a freight cost estimate
during shipment processing.

The planner can change shipment data such as the forwarding agent, shipping
conditions, mode of transport, and can calculate his shipment costs on the basis
of this data.

The functions include:

Calculation and display of shipment costs
Detailed display of shipment cost document
Display of processing log
Calculation of maximum price within transportation tendering

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TRANSPORTATION
CALCULATION BASES

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TRANSPORTATION
EXAMPLE FOR CALCULATION BASES

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TRANSPORTATION
DETERMINING PRICING & SETTLEMENT DATE
The shipment document contains pricing date fields and settlement date fields at
header level and at item level.
The following graphic illustrates automatic-date determination for the pricing date
and settlement date.

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UNIT 7

BILLING

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BILLING
BILLING
Billing represents the final processing stage for a business transaction in Sales and
Distribution. Information on billing is available at every stage of order processing and
delivery processing.

This component includes the following functions:

Creation of:

Invoices based on deliveries or services

Issue credit and debit memos
Pro forma invoices

Cancel billing transactions

Comprehensive pricing functions

Issue rebates

Transfer billing data to Financial Accounting (FI)

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BILLING

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BILLING
BILLING SCREEN
In the header, you find general data valid for the entire billing document. For example,

Identification number of the payer

Billing date

Net value of the entire billing document

Document currency

Material description

Billing quantity

Net value of the individual items

2
5

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BILLING
BASIC BILLING FUNCTION

Basic functions in billing include:

Billing types
Number range
Match codes
Copying control
Blocking reasons
Displaying lists
Displaying the billing due list
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BILLING
BILLING TYPES
Controls processing of billing documents such as invoices, credit and debit
memos as well as cancellation documents.
EXAMPLE
F2

Delivery-related invoice

F8

Pro forma invoice for delivery

CR

Credit memo

L2

Debit memo

RE

Credit memo for returns

S1

Cancellation invoice

S2

Cancellation credit memo

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BILLING
INVOICE
A sales document used to bill a customer for a goods delivery or a service.
ORDER RELATED

DELIVERY RELATED

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BILLING
CREDIT NOTE
A sales document created on the basis of a customer complaint. This reduces
receivables in Financial Accounting.

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BILLING
DEBIT NOTE
A sales document created on the basis of a customer complaint. This increases
receivables in Financial Accounting.

PROFORMA INVOICE
An invoice that is created on paper for goods to provide the customs authorities
with evidence of the cost of the goods.
It is also used for collection of payment in advance and inter plant stock transfer
order.

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BILLING
BILLING METHODS
INDIVIDUAL BILLING
One invoice per delivery.

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BILLING
BILLING METHODS
COLLECTIVE BILLING
Different documents (order/delivery)can be combined fully or partially in a
common billing document.

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BILLING
AUTOMATIC BILLING SPLIT
Billing may be split by the virtue of different payment terms,material group,shipto-party,payer etc.

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BILLING
BILLING DUE LIST
The following figure shows a case in which the billing documents are only to be
created for documents that were delivered by May 15th and whose sold-to party is
C1. According to this selection criteria, the system selects the documents to
make up the billing due list and creates the invoices when this list is processed.

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BILLING
PERIODIC BILLING
Periodic billing can be done through billing schedule.

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BILLING
BILLING DOCUMENT CANCELLATION

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BILLING
BILLING PLAN
You agree a contract with the customer and invoice the customer for the product
with the help of a periodic billing plan. The contract covers 12 periods and an
amount of 12000. This means over 12 periods there is 1000 per contract period.

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BILLING
BILLING REQUEST

The billing request is a document in which the resources to be billed are

contained as items.

You can create a billing request for:

Sales orders
Customer projects
Service orders without reference to the customer order

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BILLING
INTERCOMPANY BILLING
11

Plant A (company code A) orders 100 tons of "Steel-1" from plant B at a price of
USD 10.00 per ton and creates a normal purchase order (type NB) for the vendor
Smith & Co. who is assigned to Plant B(company code B)
22

On receipt of the purchase order, the vendor Smith & Co. enters a delivery for
100 tons of "Steel-1".When the material leaves the premises, the vendor Smith &
Co. posts goods issue. The values and the quantity are not yet posted in the
receiving plant (Plant A).
33

When the material arrives at Plant A, the goods is received against the
purchase order. The system now posts values and quantities in the receiving
plant.
44

On the basis of the delivery, the system creates a billing document (intercompany billing) amounting to USD 1000 from plant B(company code B).
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BILLING
INTERCOMPANY BILLING
In plant A(company code A), the incoming invoice can be posted in the following
ways:
The receiving plant checks the invoice with reference to the
purchase order and posts invoice receipt.
Invoice entry is posted with an internal billing document.

COMPANY
A

PLANT
A

PO by A on B

Goods receipt
By A

COMPANY
B
11
22
33

Delivery by B

Inter-company billing
by B on A
44

PLANT
B

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BILLING
DOWNPAYMENT
The following different steps in down payment processing are looked at:

Down Payment Agreements

in the Sales Order

Down Payment Request

Payments made

Milestone billing with

down payment clearing

Final billing with

down payment clearing

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DOCUMENT FLOW

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Thank you

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