LO Extraction Part 1: SD Application Short Overview

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LO Extraction – Part 1: SD

Application Short Overview

Applies to:

SAP BI, NW2004s Business Intelligence, ABAP, BI. For more information, visit the EDW homepage.

Summary

This article explains about LO extraction and its relevant SD application overview. Author: P Renjith Kumar

Company: SAP Labs India PVT Ltd Created on: 10 June 2010

Author Bio

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Introduction

This article addresses the requirement and significance of SD application in LO extraction. This article gives you a brief overview of SD application module relevant for BI. The first part deals with Functional flow, Transaction, Tables and their relations.

In SD overview we learn 3 important areas of SD where we do OLAP analysis. Those are.

Sales

Sales allow you to execute different business transactions based on sales documents defined in the system.

Four groups of sales documents are differentiated:

 Customer inquiries and quotations  Sales orders

 Outline agreements, such as contracts and scheduling agreements

 Complaints, such as free of charge deliveries, credit and debit memo requests and returns

Shipping

Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles.

In shipping processing, all delivery procedure decisions can be made at the start of the process by

 Taking into account general business agreements with your customer  Recording special material requests

 Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.

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:

1. Invoices based on deliveries or services 2. Issue credit and debit memos

3. Pro forma invoices Cancel billing transactions Comprehensive pricing functions Issue rebates

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Organization Structure in Sales and Distribution

CLIENT:

 Client is the highest level in SAP

 Client is representing group or corporate identity and  Under which the SAP system runs normal business  Common data base for the client

 Data of one client cannot be accessed from other client Company

Company signifies a legal unit under the client level that produces its own financial documents, balance sheet and profit and loss statement

Plant

Plant is a production facility or a group of storage locations where stocks are kept.Planning and inventory management take place at plant level.

Sales Organization

A Legal unit responsible for selling materials and services for one or more plants and for negotiating Prices and terms of delivery with the Customer.

Distribution Channel

Products, services selling channel to customer Division

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Sales Area Combination of

 Sales Organization  Distribution Channel  Division

Master Data in Sales and Distribution

The source of master data for sales order includes

 Customer master data : Info about customers

 Material Master data : Has info about material

 Conditions master data : For automatic pricing

 Output : Information that is sent to customer using various media

 Control tables : Tables maintained in customizing Customer Master data has these details

 General Data  Company Code data  Sales area Data  Excise details Partner Functions in customer master

Partner functions are terms that describe the people and organizations with whom you do business, and who are therefore involved in transactions. For example, when you create an Activity, based on Customizing settings, it automatically includes the partner functions activity partner, contact person, and person

responsible. Partner functions are always assigned to partner function categories, which are hard-coded in the system.

Partner function Partner function category Relationship category

Sold-to party Sold-to party

Ship-to party Ship-to party/Service recipient Is the goods recipient of Sales prospect Activity partner Is the activity partner for Activity partner Activity partner Is the activity partner for Sales manager Employee Is the employee responsible for

In general

Sold-to-party : Places the order

Ship-to-party : Receives the goods or services

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Sales and Distribution Process Overview

Presales activity

Enquiry and Quotations comes at this stage. Sales order processing

Acceptance of customer’s Sales order Important type of Sales orders are

 Scheduling agreement  Order

 Rush order

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Order Creation

Delivery

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 A delivery document will have header and item

Post Goods issue

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Billing

Bills can be created with reference to  Order

 Delivery  Previous bill After creating billing

 Customer accounted debited  Cost of goods sold account credited  Tax & Duties GL account posted

Billing types

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A billing document has header and item A billing document creation has following effects

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Billing

VBRK -Billing header

VBRP -Billing item

Shipping

VTTK -Shipment header

Delivery

LIKP -Delivery header

LIPS -Delivery item

Pricing

KONH -Conditions header

KONP -Conditions item

Transactions

 MM01-Create material

 VA01-Create sales order

 VA32-Scheduling agreement

 VF02-Change billing document

 VL01 -Create delivery

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The complete SD flow

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LO Extraction Part 1: SD Application Short Overview