SALES & DISTRIBUTI

ON CONFIGURATION
Group Members
S K Chakravarthy N

10DM-129

Srikanth Konduri
S Bharadwaj
Sarthak B

10FN-109

10DM-128

10DM-138

Shantanu Shekar

10DM-145

Raman Duggal 10DM-121

Siddharth Mullapudi

10FN-056

Agenda

Organization Structure
Critical Success Factors
Introduction to SD
Sales Process
Sales order
Check Availability
Pick Materials
Pack Materials
PGI
Invoice
Customer Payment

Organizational Structure
in SAP
Production Planning

Financial Accounting

Company
Code

Plant

Controlling

Human Resources

Client
Controlling
Area

Personnel
Area

Sales and Distribution

Sales
Area
3

Materials Management

Purchase
Organization

Critical Success Factors

Top Management commitment and Support
Clear Goals, focus and scope (Business Plan
and Vision)
Business Process Reengineering
Change Management Culture & Program
Selecting the right team (competence)
www.wondershare.com

Critical Success Factors

Effective Communication
User Training and Education
Project Champion
Avoidance customization
Use of Project management to manage
implementation
www.wondershare.com

Critical Success Factors

Use of ERPs consultants
Vendor package selection
User participation
Technical and business
knowledge
Integration of the system
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Critical Success Factors

Appropriate Management expectation
Appropriate Business & IT Legacy Systems
Software Development, Testing &
Troubleshooting
Vendor Partnership
Use of vendors development tools
www.wondershare.com

Critical Success Factors

Monitoring & Evaluation of
Performance
Management Structure
Interdepartmental cooperation
and communication
www.wondershare.com

Some Failure Examples .

Organizati
on

Industry

Hershey
Candy
Foods
Corporation

Implementat Why Failure?

ion
Scope
SAP
million

$110 Integration of the two systems

had not been
tested adequately

Whirlpool
Corp

Home
SAP
Appliance
s

Delay shipments of appliances to

distributors and retailers. One
major problem of Whirlpool is the
coordination of technical and
business
expertise.
Whirlpool
ignored the cautionary advice
from the consultant and chose to
go live.

UNSW

Higher
PeopleSoft
Education
Sector Australia

Cost over runs. It was expensive

for the
university to take people out of
normal
www.wondershare.com
positions.

Some Success Examples

Organizati Industr Implementa
on
y
tion
Scope

Why Success?

Sigma
Chemical

Chemic SAP
al
Industry

Support from top management,

BPR, invest in training and reskilling and used of consultants.

Scripps
Metabolic
Clinic

Multi
specialt
y
medical
group

Lawson ERP
integrated
solution on
HP 9000

Reliable vendor partnership and

successful system integration

Anheuser
Busch

Manufa
cturer
of
Beer
and
related
food

SAP

Provided a cost savings based

upon integration of data and
processes, a common database,
and
increase
leverage
of
purchasing and buying. The
critical
success
of
the
www.wondershare.com
implementation included used of

SD Introduction
SAP SD stands for Sales and Distribution
Manage customer-focused activities, from selling to
delivery, including
RFQ
Sales orders
Pricing
Picking (and other warehouse processes)
Packing
Shipping

The Sales Process

Pre-sales
Activities

Sales Order
Entry
Check
Availability
Pick
Materials

Receipt of
Customer Payment
Invoice
Customer

Pack
Materials
Post Goods
Issue
www.wondershare.com

The Sales Process

Customer Order

Picking

Accounts Receivable
www.wondershare.com

Goods Issue

Billing

SD Process Steps
Sales

Quotation

Shipping

Delivery
Note

Billing

Billing

FI
A/R

Post
Incoming
Payment

Sales
Order

Picking

Post Goods
Issue

SD: Functionality

Sales Support
Sales
Shipping and Transportation
Billing
Credit Management
Foreign Trade

SD: Organizational Structures

SD Structure
Client
Company Code
Sales Area
Sales Organization
Distribution Chann
el
Division
Plant
Shipping Point
Loading Point

Internal Sales Structure

Sales Offices
Sales Groups
Salesperson

SD: Structure for Sales Order Processing

Client 410

Sales Area

Company Code
C100

Plant P100

Plant P101

Sales Org
S100

Distribution
Channel (RE)

Division
(01)

SD: Internal Sales Structure

INDIA Sales Office
IN10

Mumbai Sales
Office

Delhi Sales
Office

North Delhi Sales

Group

South Delhi Sales

Group

Salesperson 1

Salesperson 4

Salesperson 2

Salesperson 5

Salesperson 3

Navi Mumbai Sales

Group
Salesperson 6

Andheri Sales
Group
Salesperson 7
Salesperson 8
Salesperson 9

SD: Structure for Distribution

Client 410

Company Code
C100

Loading Point
LP03

Plant P100

Plant P101

Shipping Point
Rail Dock

Shipping Point
Express Dock

Loading Point
LP02

Loading Point
LP01

Shipping Point
Freight Dock

Process Chain: Sales

Distribution
Inbound Logistics
from Materials
Management

Sales/Distribution
Chain

Sales Order & Distribution

Process
Receive Payment
FI

Create Invoice

Outbound Logistics
to Customer
Support Customer Sales
(Customer Info Analysis)
- Optional -

FI/CO/PA

Issue Goods
(Ship Product)
FI
MM

(Activities)

Create Delivery Note

- Check credit

Check product availability

- Determine pricing
- Estimate delivery schedule
- Determine conditions of
sale
-

20

Create Sales Order

FI/CO
MM
PP

Process Customer
Inquires
- Optional Provide Customer
Quotations
- Optional Support Customer
Agreements
- Optional -

Distribution Channel

Means through which products and services r

each the customer
A distribution channel
Defines responsibilities
Helps in achieve flexible pricing
Differentiate Sales statistics

Division and Sales Area

Division:
A division is used to group products and services.
A division represents a product line.

Sales Area:
Sales organization
Distribution Channel
Division

Sales Document

Defining Sales Document Types

It represents the different business transactions i

n Sales and controls the entire sales order proce
ss.

Defining Number Ranges for Sales Document

s

This Unique number helps in identifying the sale

s document

Sales Document (Contd.)

Defining Item Categories

The item categories along with sales document ty

pes represent the business transactions

Assigning Item Categories

This specifies the item categories the system sele

cts during document processing for each combin
ation of sales document type and item category g
roup.

Sales Documents (Contd.)

Maintaining Copy Controls between different

sales documents

For a particular sales document type, which docu

ment type is to be assigned to copied reference d
ocuments, and which item categories or schedul
e line categories are to be copied.

Sales Document (Contd.)

Maintaining Copy Controls from Billing Docu

ment to Sales Document

You can specify for a particular sales document t

ype, which document type is to be assigned to co
pied reference documents, and which item categ
ories or schedule line categories are to be copied

Shipping Process

The shipping process begins when you create

the delivery document for the sales order.

This document controls, supports, and monitors

umerous sub-processes for shipping processing:
Picking
Packing
Post Goods Issue

Integrated with the Material Management (M

M) and Finance (FI) modules

Assigning Shipping Points

Defining a default shipping point for a combin

ation of Shipping Condition, Loading group an
d Plant

Order

Generation of Orders

Delivery note

Note to ascertain
the delivery

Pick Materials on Delivery Note

Materials are
picked once the
delivery note
process is
completed

Post Goods Issue

Click on the
button to
post goods

Goods are posted

and corresponding
entries are made

Check Stock Status(MMBE)

SAP Uses This Report to Generate MMBE

Billing for Customer

Customer billings done as

per their transactions
undertaken

F-28 Incoming Payments

Payments done to the company code in the process

Order Flow

Flow of orders/deliveries

THANK YOU!