ales and Distribution Module of SAP have key elements like sales offices, Customer data base, or A Sale as a whole under its jurisdiction. Sales and Distribution will be responsible to configure all the elements that are related to sale and client either independently or in co ordination with Finance and Controlling. This Module works closely with all the other modules as it is the link between the customer and the company which puts sales and distribution module in a key junction which is of crucial nature. .
The Overview
Sales and Distribution Module will Create, Configure and Operate the key elements like customer database , sales offices, and various documents like sales orders, quotation. Credit management will be working in parallel with Finance and Controlling of SAP and Product Costing will bring Material Management and Production Planning into Picture. Revenue Account is determined at sales end.
Sales and Distribution module will create Sales office, various types of sales, shipping types. Customer Database is the key for various decision-making aspects of an organization. This module also covers various external elements like return goods policy, shipping forms, taxation aspects etc, for whole and broader smooth functioning of an organization.
3
S
I C O N K E Y
Sales Order Processing Warehouse Management Billing
Credit Management
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INDEX
1. As-Is / To-Be 81
2. Executive Summary 84
3. Organizational Structure 85
4. Master Data 91
5. Basic Functions 94
5.1 Revenue Account Determination 5.2 Credit Management
5.3 Output Determination 5.4 Text Determination 5.5 Log Of Incompletion
5.6 Availability Check And Transfer Of Requirements
6. Sales Cycle 117
6.1 Sales Documents
6.2 Delivery
6.3 Billing
7. Business Scenario 1: Standard Sales 130
8. Business Scenario 2: Quantity Contract 133
9. Business Scenario 3: Make To Order 135
10. Business Scenario 4: Returnable Packaging 137 11 Business Scenario 5: Return Of Goods 138 12.Business Scenario 6: Third Party Sales 128
13.Reports 139
14.Parameters Used For Sis 140
15.Gaps 141
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1.AS – IS TO BE
AS - IS TO – BE
Organization
Charminar Steel castings have five operating companies. The group runs its sales through 4 Branch offices at mumbai, Calcutta, Kanpur and Trichy. Export sales is routed through the consultant and its operated from sales head office Hyd.
For mapping the company’s organizational structure in SAP standard system the following has been done:-
Operating Companies - Company codes Sales head office –
Sales Organizations (1) Taking care of both Domestic and Export market
Branch Offices – Sales Offices Domestic (4) Based at mumbai, Calcutta, kanpur and trichy, Sales office export- hyderabad
Sales personal – Sales groups Channels
Charminar Steel Castings has 3 various approaches where in the products of the company are reached to customers. They are Direct selling, Institutional selling and Exports
In SAP standard system these 3 approaches have been mapped to Distribution Channels, Which are nothing but channels through which material or services, is reached to customer. They are as follows:-
Direct selling – Direct Sales
Institutional selling – Institutional Sales Export sales – Export Sales (direct sales) Products
Charminar Steel Castings has various products group like Defence, Surgical, Engineering and Pressure valve.
In SAP standard system the products of the group have been mapped to Divisions. Division is nothing but a group or range of products.
Defence Institutions like government, Defence public sectors, MNC’s and Private Institutions.
In SAP standard system the data on business partners Charminar Investment Steel Castings has a business relationship is kept in master records.
Master records contain all data necessary for processing business transactions. A customer master record is created when you start a business relationship with a new customer. Customers have been mapped to Regular customer, One time Customers.
Materials
Charminar Steel Castings procures most of its materials from local suppliers / vendors and process
In SAP standard system, Sales and Distribution data in a material master record is defined for a specific sales organization and distribution channel. The division, delivering plant, sales
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them further to make finished products.
groups, grouping terms for price agreements and sales texts etc are included in sales and distribution data. The fact that a material is linked to a distribution channel allows the material to be sold with different conditions.
Inquiry
Inquiry for domestic market and export market are for all the charminar steel products.
An Inquiry can relate to materials or conditions and if necessary delivery dates
In SAP standard system, Inquiry is a customer’s request to the company that they provide a quotation or sales information without obligation..
The sales area that accepts the inquiry becomes responsible for further processing. The total quantity of an inquiry item can be subdivided between the schedule lines in different amounts and relevant delivery dates.
Quotations
The company quotes to the customer a specific price with a validity period along with the terms
& condition.
Quotations are created when a customer has an informed sales query. The customer wants to know, for example, how much a certain quantity of a product will cost and when it will be available for shipping.
Sales Orders
After the customer agrees to the terms and condition given in the Quotation, they will issue purchase order with the required quantity of goods to be delivered on a specific date. Based on the requested delivery date the company will check the availability and proceed further to delivery. If the stock is not available then the next possible delivery date will be intimated to customer.
During sales order processing, the system carries out monitoring the sales transactions, checking for availability, transferring requirements to materials planning (MRP), scheduling the delivery, checking credit limits and creating printed or electronically transmitted documents (confirmations, and so on).
Delivery
Based on the requested delivery date given by the customer, the company will deliver the goods from a particular plant.
Outbound delivery supports all shipping activities including picking, packing, transportation and goods issue. During the outbound delivery process, shipping-planning information is recorded, status of shipping activities is monitored and data accumulated during shipping processing is documented. When the outbound delivery is created, the shipping activities, such as picking or delivery scheduling, are initiated, and data that is generated during shipping processing is included in the delivery.
Billing Billing is done on the basis of sales orders and
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transaction is considered complete from the sales point of view.
Credit and Debit Memo:
Credit memo: A sales document created on the basis of a customer complaint. This reduces receivables in Financial Accounting.
Debit memo: A sales document created on the basis of a customer complaint. This increases receivables in Financial Accounting.
Credit memos are created for various reasons (for example, because of defective goods or because you have overcharged a customer). Similarly, you may need to create a debit memo (for example, you have not charged the customer enough).
When you create a credit or debit memo, you can refer to an invoice or a credit memo request.
Returns
If the customer returns the goods a returns delivery is created and credit memo is issued to the customer.
Returns documents are created when the customer wants to return damaged goods or goods that were delivered on a trial basis. The returns document can be created with or without reference to the sales order. When the returned goods arrive back at the warehouse, you then create a returns delivery, which refers to the returns document you already created. The goods issue posted for the return delivery records the inward movement of the goods into your own stock.
Exports
Charminar Steel castings is primarily being exported to European countries. The nature of business is bulk. The sale is done through agents
In SAP standard system the exports sales process is mapped just like that normal sales order process except that distribution channel involved will be Exports through which the products reach its customer in the European countries.
SPECIAL SALES PROCESSES configured by sales document type (CS) available.
The delivery is done automatically along with the
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except that an Invoice is raised later and customer pays the amount at a later date.
rush order is that invoice is raised later and customer pays the amount at a later date.
Third Party Sales
All orders for Charminar Steel Castings Limited are procured through the Vendor using third party sales process. Vendor directly sends the goods to the customer as per the requirement mentioned in the sales order and vendor bills the company.
In the SAP standard system, control parameters like Item Category group (BANS) and Item Category (TAS) map Third party sales. The Standard sales document type is used to execute the third party sales.