Business Process Overview
SD is about selling, shipping and billing a product and/or service to a business.
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Inquiries (eg. Asking for prices, description)
Quotations (eg. With time limit/validity date, 5000 until Dec. 10)
Pre-sales activities 1.
Sales order
Data validation and processing
Sales order processing 2. Availability check Inventory Sourcing 3. Delivery document
Picking - is the process of getting the specified finished goods off the storage locations in preparation for being shipped to the customer
Packing - is the process of placing the goods into packaging materials or combining them in preparation for being shipped to the customer
Goods issue - records that the products have been literally issued out of the warehouse
Delivery 4.
Invoice
Transfer data to accounting
Billing 5.
Payment (under SAP FI) 6.
SD has five (5) different processes: •
Wednesday, January 05, 2011 10:43 AM
SAP Enterprise Structure
SD is about selling, shipping and billinga product and/or service to a business. •
Highest – level element of all organizational elements
Represents the enterprise/headquarters group
Typically a corporation
Client
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Legal entity and independent accounting unit (this is because each country has a different rule regarding taxes)
Company within a corporate group
-Subsidiary
-A branch of a corporation in different countries
-A company code could be:
There can be several company codes within a client
Company Code
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Represents the selling arm of your enterprise
Could be assigned to only one company code
Sales Organization
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A means through which saleable materials or services reach the customer (ex. Retail, Wholesale, Direct Sales)
Distribution Channel
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Represents a product line (ex. Phones, Pagers)
Division
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It is the single point of contact of the customer with the company’s selling arm
Composed of: Sales organization, Distribution Channel, and Division
Sales Area
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A facility where the products are distributed from
Assigned to only one company code for inventory and accounting purposes
A company code can have many plants
Plant
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A sales organization can sell goods from several plants (can be said as the "seller")
Plant can be assigned to different sales orgs.
Sales Organization
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An organizational unit allowing differentiation between the various stocks of a material inside a plant
Storage Location
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Represents the highest organizational level for shipping
Location where the deliveries are processed
-Group of employees who process the deliveries
-Could be:
A delivery always leaves one (1) shipping point only
Could be subdivided into several loading points
Shipping Point
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Organizational Units - Represent the structure, legal, and organizational views of an enterprise. There are different organizational units in SAP:
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SAP SD Notes
Thursday, January 06, 2011 12:39 PM
Specifies and controls customer credit limits and risk categories
A company code could only belong to one CCA.
Credit Control Area ○
Highest organizational unit for transportation planning (typically a group of employees responsible for organizing transportation
Can be said as the "shipping partner"
Transportation Planning Point
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Organizational Units in SD SD + Other Modules Sales Organization (Sales Area
Distribution Channel (Sales Area)
Division (Sales Area) Shipping Point Storage Location Company Code Plant
Master Data
Master Data is the repository for data commonly used in order processing. It is available to all applications and authorized users, and is created manually.
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Customer Master Data → Who are we selling to? ○
Material Master Data → What is being sold? ○
Customer-Material Info Records → ○
If we sell a certain product to a certain customer, what are the details specific to this setup? (ex. If we sell at least 100 pagers to Ian in particular, he can get 20% off the total price) Pricing Conditions → How do we determine how much a certain product is sold for? The system automatically determines which gross price the customer should be charged and which discounts and surcharges are relevant given the conditions that apply. See: Pricing
Condition Techniques
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A master data is a prerequisite for any order processing in SAP. The master data commonly used for SD are:
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Customer Master Data
Accounting Data (unique to Company Code) ○
General Data ○
Sales Data (unique to a Sales Area) ○
Common views for Customer Master Data in SD are: •
Sold-to-Party → Places an order ○
Ship-to-Party → Where goods are delivered ○
Bill-to-Party → Where the invoice is sent ○
Payer → Settles the invoice (payment) ○
Partner Functions are terms that describe the people and organizations with whom you do business, and who are therefore involved in transactions. The different partner functions available for SD are:
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Account group is a classification in the customer master record. It determines which entries are required and optional (ex. Sold-to-Party)
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Material Master Data
Sales Organization Data 1 and 2 ○
General / Plant Data ○
Sales Text ○
Common views for Material Master Data in SD are: •
Material Type are similar to account groups. It determines what screen can be viewed. •
For example, raw materials (material type ROH) do not require a sales view because raw materials are not intended for resale.
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SAP SD Notes
Thursday, January 06, 2011 1:13 PM
Sales Order Processing
OR Standard Order
SO Rush Order
FD Delivery Free of Charge Order Types ○ Sold-to-Party/ Ship-to-Party ○ Material ○ Order Quantity ○
Sales Area (Optional) ○
Order Creation •
Header - Applicable to entire order ○
Item - Applicable to 1 item only ○
Schedule Line - Applicable to 1 line item each ○
contains a date and quantity Sales Document Structure • Header Item 1 Schedule line 1 Item 2 Schedule line 1 Schedule line 2
Sold to: Pedro Sales area:
Luzon / Direct Sales / Cell phones
Item / M aterial: ULA1000 Quantity: 1 piece
Delivery date: Dec. 1, 2010 Confirmed quantity: 1 pc
Delivered quantity:
In the order creation, only a number of fields are needed (ex.Item, Quantity, Sold-to-Party). Now, the population of the rest of the document comes from the Master Data and Tables. Here's how: •
(For Master Data) Other data are extracted from the Customer Master and Material Master like payment terms, plant, pricing, etc.
(For Tables) By filling up the Sold-to-Party field, the delivery and billing information can already be determined, as well as the Shipping Point and Route through the Material field.
Incompletion Checks helps in determining what required fields were left blank.
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Order Processing: Incompletion Check •
Incompletion Checks can be triggered when the document is saved, or by using the menu bar > edit > incompletion log or ctrl+F8
Wednesday, January 12, 2011 2:13 PM
Pricing
SAP computes the final price of an order based on a Pricing Procedure which is a series of arithmetic operations from base price to final price. It is generally computed in this manner:
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Note: Price calculation is done at order entry time so that we can inform the customer when the order is taken how much he will be charged. Recalculation of taxes is done at billing time.
Pricing Procedure - specifies the allowed price elements (condition types) for a
document, defines their sequence, and calculation scheme ("calculation formula"). Following below is an example of a pricing procedure:
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Condition Technique in Pricing refers to the method by which the system determines prices from information stored in condition records. It has the following elements:
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Say, in our payslips, we can categorize Basic Income, Pag-Ibig Premium, Philhealth Premium, Withholding Tax, etc as condition types.
In the above example of a Sales Order, the condition types are: PR00 or Price, AZWR or Down Pay./Settlement, MWST or Output Tax, SKT0 or Cash Discount and VPRS or Cost.
Condition Types - is used to differentiate between different kinds of price elements
(prices, discounts/surcharges, freight and taxes) and defines their characteristics (%-or absolute discount). It can be applied as a Header Condition, Item Condition, or both. ○
Access Sequence - is the criteria that is used by SAP when searching for values
maintained for a specific condition type. These values are known as condition
records. You assign an access sequence to a condition type although there are some
condition types that do not require access sequences. ○
Condition Record - It is the record itself or data in the condition table. It also allows to store and retrieve pricing data in the systems.
Condition Table (Accesses) - defines the combination of fields for which
condition records can be created. It defines the structure of condition record keys and gives the link to the rate (condition amount or percentage). Condition Tables can be found on an Access Sequence that is why they can be called “accesses”.
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With the example above, the condition types are the Price, Output Tax, Discounts, while the pricing procedure is the specific sequence of the condition types (ex. price comes first before output tax) and the allowed price elements/condition types. The Access Sequence is the order on which the system should work through the condition tables when searching for particular condition records. If a certain record is not met in a condition table, it will move to the next condition table until it satisfies all the records inside it.
Note: The System determines the pricing procedure according to information defined inside the sales order
SAP SD Notes
Thursday, January 13, 2011 11:15 AM
Material Determination
Material Determination allows the substitution of one material for another in the sales document. Just like Price Determination, it uses a condition technique.
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Let's say, material ULA 1000 is not available for purchase due to some reasons (could be out of stock). With Material Determination, the system automatically substitutes it with ULA 1001. Let's assume that they have the same features, and price. What happens in the background is this:
The Sales Document determines what procedure is used. The procedure decides what condition types are used. The condition type decides the access sequence. The access sequence specifies the strategy for data records. *****
In order to visualize the change, below is an example of a graphical representation.
Sales order Item 10 Material 82050011 82050211 Material entered 82050011 Substitute material 82050211 Material determination
Example usage: Product Selection
Since Item 82050011 is not available, it is automatically replaced with 82050211 with accordance to the Material Determination. Let's assume that both items have the same features and price except for the packaging where the latter item has an additional ribbon (or added feature).
Thursday, January 13, 2011 2:22 PM
Material Determination allows the substitution of one material for another in the sales document. Just like Price Determination, it uses a condition technique.
Let's say, material ULA 1000 is not available for purchase due to some reasons (could be out of stock). With Material Determination, the system automatically substitutes it with ULA 1001. Let's assume that they have the same features, and price. What happens in the background is this:
