SAP SD Blue Print

(1)

in Sales

suggested by CVS IT

Introduction

This Business Blue Print Document describes the following:  Enterprise Structure of ISPAT group of companies.  Business requirements as given by the ISPAT Key Users.

 Suggestions by CVS IT consultants wherever SAP R/3 4.6C features are found to be useful to ISPAT’s business functionality.  To-Be Process on SAP R/3 system suggested by CVS IT Consultants

 Comments whether the requirement can be realized on the SAP R/3 system or not.  Gaps which are at different stages of exploration

It may not be possible to decide the realization possibility of all Business requirements on the SAP R/3 4.6C / CIN4.0A / Mill Products 2.0 system immediately and hence the following legend is being followed for describing the statuses:

Status of To-Be Business

Process Status Description

A-Possible Can be implemented on 4.6C

B-Possible with workaround Can be implemented on 4.6C through indirect means C-Possible with ABAP Can be implemented on 4.6C through ABAP/4 development D-Possible with ABAP (But

performance issue)

Can be implemented on 4.6C through ABAP/4 development but system performance may be effected

E-Not possible with out Major

Modification Cannot be implemented on 4.6C without major system modification F-Open for exploration

Possibility of implementation will be explored in the development environment. Cannot be confirmed at this stage

G-Not possible Cannot be implemented on 4.6C H-Not in Scope

Cannot be implemented because it is not part of the scope defined in the “Software Services Agreement” between CVS IT & ISPAT

The To-Be business process realization is dependent on the following aspects:

 Scope of services described in the Software Services Agreement signed by ISPAT & CVS IT  Scope of functionality described in the Software Services Agreement mentioned above.

To-Be Business Processes of Sales & Distribution for ISPAT Industries

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 Capabilities & Limitations of SAP R/3 4.6C / CIN 4.0A / IS – Mill Products system  As-Is Business Knowledge Transfer from ISPAT Project Team members

 Business Requirements defined by the ISPAT Project Team members

ISPAT accepts that the decision to accept the ‘To-Be’ Business Processes is completely it’s own and not influenced by CVS IT. CVS IT shall not be responsible for the business consequences on ISPAT after the realization and usage of the processes being suggested here.

ISPAT shall indemnify CVS IT from all responsibilities for any other business consequences during the framing of the To-Be Business processes, or at any time during or after the realization / implementation of these processes on SAP R/3 system or while using the system.

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Sales Organisation – East, IIL This Sales Organisation will be responsible for all business transactionsof IIL in the Eastern Region. NORT Sales Organisation – North, IIL This Sales Organisation will be responsible for all business transactionsof IIL in the Northern Region. SOUT Sales Organisation – South, IIL This Sales Organisation will be responsible for all business transactionsof IIL in the Southern Region. WEST Sales Organisation – West, IIL This Sales Organisation will be responsible for all business transactionsof IIL in the Western Region. IMEA Sales Organisation – East, IMIL This Sales Organisation will be responsible for all business transactionsof IMIL in the Eastern Region. IMNO Sales Organisation – North, IMIL This Sales Organisation will be responsible for all business transactionsof IMIL in the Northern Region. IMSO Sales Organisation – South, IMIL This Sales Organisation will be responsible for all business transactionsof IMIL in the Southern Region. IMWE Sales Organisation – West, IMIL This Sales Organisation will be responsible for all business transactionsof IMIL in the Western Region. IEEA Sales Organisation – East, IEL This Sales Organisation will be responsible for all business transactionsof IEL in the Eastern Region. IENO Sales Organisation – North, IEL This Sales Organisation will be responsible for all business transactionsof IEL in the Northern Region. IESO Sales Organisation – South, IEL This Sales Organisation will be responsible for all business transactionsof IEL in the Southern Region. ILWE Sales Organisation – West, IEL This Sales Organisation will be responsible for all business transactions

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Distribution

Channel

Description

Explanation / Justification

DI Direct Sales

The distribution channel is the channel through which saleable materials or services reach the customer. The distribution channel is used to target a particular group of customers.

 A Direct Sales is a distribution channel which would be used for direct domestic sales.

DP Depot Sales  A Depot Sales is a distribution channel which would be used for sales from depots.

AS Auction Sales  An auction sale is a distribution channel which would be used for internet & normal auction.

TP Third party Sales  A Third Party sale is a distribution channel which shall be used for_{Third Party / Conversion sales.} EX Export Sales

 An export sale is a distribution channel which would be used to cater for all international customers.

OT Others Any other type of distribution channel.

Division

Description

Explanation/Justification

HR HR- Hot Rolled Products For Hot Rolled Products (Including Saleable Lime products)

CR CR- Cold Rolled Products For Cold Rolled Products

GP GP- Galvanized Products For Galvanized Products

CC CC- Color Coated Products For Color Coated Products

BF BF- Blast Furnace For Blast Furnace (Including Saleable Coke)

SP SP- SIP Products For SIP Products

PW PW-Power For Power (Electricity )

Sales Office

Description

Explanation / Justification

SOWE Sales office – West (Mumbai) Sales Office is considered as Regional office, which is looking after sales of particular region, and controlling branch offices and depots in the respective region.

SONO Sales Office – North (Delhi) “ SOEA Sales Office – East (Calcutta) _“ SOSO Sales Office – South(Chennai) “

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MUM Mumbai Sales Office Sales Groups are considered as individual offices assigned to the_{Regional offices or sales offices} AUR Aurangabad Sales Office “

PUN Pune Sales Office “ AHM Ahmedabad Sales Office “ IND Indore Sales Office “ DOL Dolvi Sales Office (Raw material & miscellaneous

scrap sales) “ DEL Delhi Sales Office “ LUD Ludhiana Sales Office “ PAR Parwanoo Sales Office “ FRD Faridabad Sales Office “ KRN Karnal Sales Office “ CHD Chandigarh Sales Office “ KNP Kanpur Sales Office “ GBD Ghaziabad Sales office “ KOL Kolkata Sales Office “ PTN Patna Sales Office “ GUH Guwahati Sales office “ CHN Chennai Sales Office “ HYD Hyderabad Sales Office “ BNG Banglore Sales Office “

Plant

Description

PSIP

Plant is either a place of manufacturing or a place of storage or a combination of closely situated storage locations.

Sponge Iron Plant-SIP

PHSM Hot Strip Mill-HSM

PLCP Lime Calcinations Plant-LCP

POX1 Oxygen Plant1- IIL Plant (Air Separation Plant)

PTAL Taloja Plant

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PCGL Continuous Galvanizing Line-CGL

PCCL Color Coating Line-CCL

PASS Angle Shapes & Sections

DMUM Mumbai Depot

DAHM Ahmedabad Depot

DDEL Delhi Depot

DLUD Ludhiana Depot

DPAR Parwanoo Depot

DFRD Faridabad Depot

DKRN Karnal Depot

DCHD Chandigarh Depot

DKNP Kanpur Depot

DGBD Ghaziabad Depot

DKOL Kolkata-(Liluah)

DKOB Kolkata-(Belurmath)

DGUH Guwahati Depot

DPTN Patna Depot

DCHN Chennai Depot

DHYD Hyderabad Depot

DBNG Banglore Depot

PBLF Blast Furnace-BLF

POX2 Oxygen Plant2-100 TPD- IMIL Plant POX3 Oxygen Plant2-100 TPD- IMIL Plant POX4 Oxygen Plant- 50-TPD- IMIL Plant POX5 Oxygen Plant- 37.5- TPD- IMIL Plant

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PCBP Cold Briquetting Plant

PIEL Ispat Energy

PMPT Mumbai Port Trust (Logical Plant)

PJPT JNPT (Logical Plant)

PNGT Nagothane (Logical Plant)

PNGP Nagpur Railway Yard (Logical Plant)

Shipping Point

Description

Loading Points

Description

SSIP

Shipping Point For Sponge Iron Plant-SIP (

PSIP

)

11 SIP- Loading Pont for warehouse B Conveyer

12 SIP- Loading Pont for warehouse C Conveyer

13 SIP- Loading Pont for warehouse G Conveyer

14 SIP- Loading Pont for warehouse A Pay Loader

15 _{SIP- Loading Pont for warehouse B Pay Loader}

16 _{SIP- Loading Pont for warehouse C Pay Loader}

17 _{SIP- yard 346}

18 _{SIP- SILO}

19 _{SIP- Loading Pont for warehouse A Conveyer}

SHSM

Shipping Point For Hot Strip Mill-HSM (

PHSM

)

21 HSM-coil yard loading point NO 01

22 _{HSM-coil yard loading point NO 02}

23 _{HSM-coil yard loading point NO 03}

24 _{HSM-roll shop bay loading point NO 01}

25 _{HSM-roll shop bay loading point NO 02}

26 _{HSM-open yard – near to coil yard}

27 _{HSM- Caster Bay Yard}

28 _{HSM- Scrap Yard}

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HSM - Electrical Arc-furnace Area

SLCP

Shipping Point For Lime Calcinations Plant-LCP (

PLCP

)

29 LCP- Loading Point

SOX1

Shipping Point For Oxygen Plant- IIL Plant (

POX1

)

Through Pipe line

STAL

Shipping Point For Taloja Plant (

PTAL

)

30 Taloja Yard

SCRM

Shipping Point For Cold Rolling Mill-CRM (

PCRM

)

31 CRM-Slitter Bay

CRM-Balancing Line

SCGL

Shipping Point For Continuous Galvanizing Line-CGL

₍

_PCGL

₎

32 Loading Point For CGL1 Despatch

33 Loading Point For CGL2 Despatch

34 Loading Point For

CGL3 Despatch

35 Loading Point For

CGL4 Despatch (Under

commissioning).

SCCL

Shipping Point For Colour Coating Line-CCL (

PCCL

)

36 Loading Point For CCL Despatch

SASS

Shipping Point For Angle Shapes & Sections (PASS)

37 Loading Point For Angle Shapes & Sections

SMUM

Shipping Point For Mumbai Depot (

DMUM

)

41 Loading Point For Mumbai Depot

SAHM

Shipping Point For Ahmedabad Depot (

DAHM

)

42 Loading Point For Ahmedabad Depot

SDEL

Shipping Point For Delhi Depot (

DDEL

)

43 Loading Point For Delhi Depot

SLUD

Shipping Point For Ludhiana Depot (

DLUD

)

44 Loading Point For Ludhiana Depot

SPAR

Shipping Point For Parwanoo Depot (

DPAR

)

45 Loading Point For Parwanoo Depot

SFRD

Shipping Point For Faridabad Depot (

DFRD

)

46 Loading Point For Faridabad Depot

SKRN

Shipping Point For Karnal Depot (

DKRN

)

47 Loading Point For Karnal Depot

SCHD

Shipping Point For Chandigarh Depot (

DCHD

)

48 Loading Point For Chandigarh Depot

SKNP

Shipping Point For Kanpur Depot (

DKNP

)

49 Loading Point For Kanpur Depot

SGBD

Shipping Point For Ghaziabad Depot (

DGBD

)

50 Loading Point For Ghaziabad Depot

SKOL Shipping Point For Kolkata- Liluah (DKOL) 51 Loading Point For Kolkata- Liluah SKOB Shipping Point For Kolkata-Belurmath (DKOB) 52 Loading Point For Kolkata- Belurmath

SGUH

Shipping Point For Guwahati Depot (

DGUH

)

53 Loading Point For Guwahati Depot

SPTN

Shipping Point For Patna Depot (

DPTN

)

54 Loading Point For Patna Depot

SCHN

Shipping Point For Chennai Depot (

DCHN

)

55 Loading Point For Chennai Depot

SHYD

Shipping Point For Hyderabad Depot (

DHYD

)

56 Loading Point For Hyderabad Depot

SBNG

Shipping Point For Banglore Depot (

DBNG

)

57 Loading Point For Banglore Depot

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SOX2

Shipping Point For

Oxygen Plant2-100 TPD- IMIL Plant

Through Pipe line

SOX3

Shipping Point For Oxygen Plant3-100 TPD- IMIL Plant

Through Pipe line

SOX4

Shipping Point For Oxygen Plant4- 50-TPD- IMIL Plant

Through Pipe line

SOX5

Shipping Point For Oxygen Plant5- 37.5- TPD- IMIL Plant

Through Pipe line

SCBP

Shipping Point For Cold Briquetting Plant

72 Shipping Point for Cold Briquetting Plant ( 2106 )

SMPT

Shipping Point For Mumbai Port Trust

73 Loading Point

For Bombay Port Trust

SJPT

Shipping Point For JNPT

74 Loading Point

For JNPT

SNGT

Shipping Point For Nagothane

75 Loading Point for Nagothane

SNGP

Shipping Point For Nagpur Railway Yard

76 Loading Point for Nagpur Railway Yard.

Company Code

Description

Transportation

_{Planning Point}

Description

1000

Ispat Industries Ltd. – IIL

TSIP

Tr.Type for SIP

THSM

Tr.Type for HSM

TKL1

Tr.Type for KLM Plant

TKL2

Tr.Type for KLM General

TDEP

Tr.Type for Depot

TEXP

Tr.Type for Export ( Dolvi & KLM)

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in Sales

suggested by CVS IT

4. Different Types of Sales

ISPAT makes the following types of Sales:

1) Domestic sales:

1.1 Direct Sales - OEM /OAU Sales, Projects, Trade and export diverted 1.2 Assortment Sale

1.3 Sales through Depots

1.4 Sales through Commission Agents 1.5 Sales through Consignment Agents 1.6 Third Party Sales

1.7 Scrap Sales (Raw material scrap, Production scrap, miscellaneous scrap) 1.8 Sale to Govt. companies (Defence, Railways etc) / PSUs

1.9 Barter Sales

1.10 Sales through Auctions 1.11 Free Samples

1.12 Sale of Service (billeting of barges, utilisation of production capacity) 1.13 Job Work

1.13 Sales to ISPAT Group Companies 1.14 Sale of By-products

2) Stock Transfer:

2.1 Stock transfer for sale: plant to depot, depot to depot, plant to plant, depot to plant 2.2 Stock transfer for Consumption: home consumption, captive consumption

3) Export & Export Related sales:

3.1 Direct Export Sales to countries other than Nepal, Bhutan 3.2 Exports to Nepal and Bhutan

3.3 Third Party Exports 3.4 CT-2 / CT-3 Sales 3.5 Export Support Sales

Brief Explanation of each type of Sale: 1. Domestic Sales:

All sales are done to the parties who are with in India. All materials produced at Dolvi and Kalmeshwar locations of IIL, IMIL and IEL is sold under this category.

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1.1. Direct Sales - OEM Sales, OAU, Projects, Trade, Export Diverted, By products;

Direct Sale is done normally to Original Equipment Manufacturers, Other actual users, Projects and Trade Customers. Customers would produce the following sales tax concession forms for sales tax exemption / concession:

 Form BC - for Sales Tax exemption for Sales made to Units in Backward Area

 Form ‘EC’ - for Sales Tax exemption for Sales made to Units in Backward Area (no difference from Form BC as far as treatment by Ispat Industries Ltd. is concerned)

 CST with & without Form ‘C’  LST

 Form ‘N-15’ - for Sales Tax Exemption (for exemption of capacity expansion)  From ‘D’ - for Sales tax exemption for Sales to Govt. & PSUs’

 Form ‘H’ - for Sales Tax exemption to 100% EOUs’  Form ‘R’ for Octroi exemption for 100% EOUs.’  Form ‘F’ for depot stock transfer .

1.2. Assortment Sale:

A Product Mix is prepared by ISPAT on the basis of requirement from Customer and sold to that particular customer. 1.3. Sales though Depots:

Material is transferred to depots for onward sale to end customers or traders. 1.4. Sales through Commission Agents:

A commission Agent is a Business partner who earns a commission from the sale he has secured for ISPAT.

 The Order comes from the End Customer either directly addressed to Ispat or it may be in the name of the Commission Agent. The Order Confirmation is given to the end customer in all cases.

 The payment comes from the end Customer to ISPAT.  Price is the end Customer price.

 The commission to the commission agent has to be calculated as a certain %age of the Net Value 1.5. Sales through Consignment Agents:

A consignment transfer is made to the consignment agent’s godown with only an Excise Invoice. The stock belongs to ISPAT but the consignment agent owns the godown. The consignment Agent bills the end customer and sends a invoice copy to ISPAT. Based on this Invoice ISPAT will pass a Debit entry on the Consignment agent. The difference in excise will be paid to the Excise Authorities in a month-end settlement. Commission is paid to the Consignment agent for the services rendered. They are being treated as customers.

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1.6. Third Party Sales:

The process is as follows:

Excise Invoice Excise Invoice

Ispat Third Party End-Customer @ Rs.100 @ Rs.200

Commercial Invoice

Ispat. End-Customer @ Rs.200

1.7. Scrap Sales:

When Scrap is generated a communication is sent to CMO from the plant. CMO will book Orders for the generation. The process flow for the sale is exactly the same as that for the Normal Products Sold.

Sales Order Delivery Invoice 1.8. Sale to Govt Companies:

Ministry of Railways release yearly requirements through tendering which has two stages – technical & commercial. For the execution of the order an approval is needed from Research & Development Standards Organisation (RDSO). After the material has been produced the official nominated by the RDSO inspects the same and the material is then despatched to the various locations required by the railways. As soon as the material is received at various locations then a receipt note/ receipt order is sent to ISPAT. Then the receipt note / RDSO Clearance Certificate / Freight Certificate is submitted at the FA & CO Mumbai Office. Then a payment to the extent of 98% of the value of material supplied is made. Subsequently the balance 2% is made after inspection of material.

The railways pay freight, as per their standard rates, either by rail or by road, whichever is lower. 1.9. Barter Sales:

In some cases ISPAT supplies some material to a party and they supply back the same type or different material to ISPAT and this is need based. For e.g.: Sales of DRI to ESSAR who in return supplies Pellets to Sponge Iron Plant and Hot Rolled Coil to Cold Rolled Coil.

1.10. Auctions:

Material, which will become arising or diversions like diverted from export/domestic/OEM/Depot etc, is sold in an auction. The auction is done for the estimated quantity generated of the goods. Price is decided on the basis of the price of the highest bidder and as per financial arrangement.

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1.11. Free Samples:

ISPAT issues Free Samples to Customers as a part of promotional campaign or for targeting new customers.

1.12. Sale of Service:

ISPAT’s customer sends their material to ISPAT on a 57F(4) / any normal challan for processing of goods and material should be delivered back within 180 days to the customer. The goods are processed and ISPAT sends the material to the customer on the same 57F(4) and then raises a commercial Invoice, for services rendered. In this case there will be no Excise Duty or Sales Tax. Freight may or may not be charged.

1.13 Job Work:

Ispat sends the material to a processor for processing on a 57F(4) / any normal challan for processing of goods. After processing the finish goods are taken back to the plant/Depot. The processor is paid for the processing charges as per the contract. For example, when the demand for GP increases, KLM sends CR coils to external processors who galvanises the materials and send the galvanised coils to depots from where they are despatched to the end customers.

1.14 Intergroup company sale:

Sales of products by one company code to another company code under the same company come under this category. For example, sale of IMIL products like hot metal to IIL. Sales of oxygen by IMIL to IIL (HSM plant) etc.

1.15 Sale of By-products:

Products which are generated during manufacturing process of main products are called as By-Products. Sale of By-Products is done similar to NCO Non-Prime products.

2 Stock Transfers:

2.1 Inter-Plant Transfers:

Transfer of material to the various units within ISPAT. Transfer of material takes place between plants of different excise registration  HR coils from HSM (Hot Strip Mill) to CRM of Kalmeshwar.

 Slit Coil supply from Dolvi Slitting Lines to CRM of Kalmeshwar.

 Mill Coil Supplied from HSM of Dolvi to CRM of Kalmeshwar and Slitted at their end, Wider Width is consumed as per the requirement of CRM.

2.2 Captive and Home consumption:

Transfer of material and consumption takes place between plants of the same excise registration.  CRM to CGL

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 CRM to CCL  CGL to CCL  CGL to CRM (Packing)  CCL to CRM (Packing)  SIP to HSM  OXY to BF (IMIL)

 HSM to SIP: (HR Sheets): Home Consumption

 HSM to HSM : Home consumption

 CCL to Civil Deptt (for roofing), CRM to CCL (for packing) : Home Consumption

3 Exports :

3.1 Direct Export Sales:

Direct Sales to customers, who are outside India. 3.2 Exports to Nepal and Bhutan:

Export made to Nepal and Bhutan is treated differently. The excise rebate is granted to His Majesty’s Govt of Nepal on Indo Nepal treaty . 3.3 Third Party Exports:

ISPAT sells to an Exporter (trading house) who in turn sells to his overseas customers. The turnover is booked in Indian Rupees. The benefits like SIL etc. accrue to ISPAT.

3.4 CT-2 / CT-3 Sales:

If the customer wants to take the benefit of exporting his finished goods for which he uses ISPAT’s material as a raw material then he executes a bond with the Central Excise & will apply for a bond / certificate (CT-2 / CT-3 Certificate). After getting the certificate the customer gives the certificate to CMO. Only against receipt of this Form and after Excise Dept clearance, FG can be despatched without charging excise duty. This form CT2, CT3 is produced to Excise Supdt. Office of suppliers range for assessment.

3.5 Export Support Sales:

ISPAT sells material to customers who export their finished goods using the EPCG license of Ispat after manufacturing them using ISPAT’s raw material for completing obligation for plant & machinery imported during project stage free of import duties.

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5. Master Data

6.0 Master Data Maintenance

6.0.0 Master Data Maintenance

Provision for Maintaining the following master data is required:

1. Business partners 2. Materials

3. Conditions (Commercial) 4. Agreements with customers 5. Customer Credit Information

Business Partners shall be maintained using

standard SAP functionality. (A)

6.0.1 Maintenance of Business Partners

6.0.1.1 Sales Prospect Maintenance

It is suggested to maintain ‘Sales Prospects’ in the SAP system so that all sales activities shall be maintained for prospective customers.

1. Before any sales activity planning / logging, the marketing person shall create a sales prospect in the system, if the company already doesn’t exist in the system.

2. Differentiation of a Sales Prospect from a regular customer shall be done using a different account group for the Sales Prospect. When the sales prospect will be converted to a regular customer, then up gradation in account group shall be done.

(A)

6.0.1.2 Maintaining Customers

All customers and their related information should be maintained in SAP.

Following Partner Functions should be made available:

1. Partner to whom the material is sold. 2. Partner to whom the material is to be

shipped.

3. Partner who makes the payment for the business transaction.

1. The following partner functions shall be made available:

a.

Sold to Party – the company that places the order on ISPAT.

b.

Ship to Party – the company at whose premises material sold by ISPAT is unloaded.

c.

Payer – the company which settles the invoices for goods sold by ISPAT

d.

Bill-to-party – the company on whose

1-5 & 7-9 (A) 6-Sales Tax & Excise Details should not be maintained in the Standard SAP R/3 transaction in which the main details of the customer are maintained. Excise

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4. Partner on whom the invoice is raised. 5. The excise details (EC C No, CST, and LST

No) of sold to party & ship to party should be maintained in the customer master itself. 6. Customer Sales Info (like Total requirement,

total Turn over) (in Grade, Size, Qty)

Customer related information regarding requirement, qty purchased from competitor, the NSR of the price etc should be maintained in the customer master record.

name & address the Invoice is prepared by ISPAT.

e.

Forwarding Agent – The Company which ships (transport) the material.

2.

Following views shall be maintained for the customer:

a. General data – which contains the address, control data, marketing, foreign trade, unloading point and contact person.

b. Company Code data – which contains the accounting specific details like accounting information, payment transaction, correspondence accounting and insurance accounting.

c. Sales Area data – which contains sales, shipping, billing, output ( if required to be controlled through customer master record) and partner specific details. 3. The customer master record shall be

maintained for all or any of the following companies depending upon the business relationship:

a. Ispat Energy Limited b. Ispat Metallics India Limited

c. Ispat Industries Limited

4. The customer master record shall be maintained for all or any of the sales areas mentioned in the Enterprise Structure depending upon which sales area is servicing the customer.

details of the custom4er will be maintained in J1IL in CIN.

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5. Changes to customer master should be controlled. Company Code Data shall be created/changed/maintained by Accounts department. Sales Specific Data shall be maintained by Marketing Department. 6. Sales tax registration Numbers, Excise

Registration, Division, range, Collectorate, ECC Number etc. shall be maintained using the transaction for customer maintenance in the Add-on Component “CIN 4.0A”. 7. Frequently used grades/sizes/qty for a

particular customer may be stored in an item proposal. The item proposal number shall be entered in the customer master record.

8. Quantity tolerance in % for delivery (i.e. under delivery or over delivery) shall be defined in the customer master. So the quantity delivered within tolerance limit shall be acceptable to the customer. 9. If the customer allows order combination

or accepts partial deliveries, the same shall be indicated in the customer master record.

10.Customer related information regarding requirement, qty purchased from

competitor, the NSR of the price etc is not available for inclusion in customer master

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record in standard SAP system.

6.0.1.3

Contact Persons Maintenance

It is proposed to maintain the details of contact person of a customer – Name, telephone, mobile number, e-mail id, etc.

1. Contact Person shall be maintained for each of the Customers

2. This contact person shall be entered while maintaining the Customer Master Record or in the master record of contact persons.

(A)

6.0.1.4

Forwarding Agents Maintenance

The Agent who is involved in the Export Sales should be maintained in the SAP system.

1. Forwarding Agent shall be created using the standard SAP transaction –

‘Forwarding Agent – Create’.

2. This partner function shall be used when creating the export order.

(A)

6.0.1.5

Sales Personnel Maintenance

All the sales employee master records should made available in SAP.

Employee Number of ISPAT Marketing Personnel shall be entered:

1. In the customer master: if the employee ( KAM) is normally responsible for processing transactions with this customer .

2. In the sales document: if the employee is responsible for processing the business transaction.

(A)

6.0.1.6 Transporters Following types of Transporters should be defined as master data in SAP system:

Pre-Paid Transporters

1. For all stock transfers delivery order shall be placed by IIL’ approved transporters on Pre-Paid billed basis. When the customer fixes Transportation charges from plant to party’s site then material is sent on pre-paid basis. 2. Destination-wise freight charges should be

maintained on monthly / periodic basis.

1. Transporters shall be created as ‘Vendors’ in the SAP R/3 system.

2. Transporters shall be of the partner type ‘CR’. (Carriers). Condition record is to be

maintained for freight for each transporter, destination and route.

3. In the Customer master, all the preferred transporters of the Customer shall be maintained using the partner function ‘CR’. 4. When an order is being booked, the system

shall give the option of selecting one of these

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3. ISPAT shall pay the transporter for the service. 4. ISPAT recovers the freight from the customer

during billing.

5. Transporter is identified after allocation of stock, in most of the cases.

6. To be included in the master if the transporter is an IBA approved transporter & number. To-Pay Transporter

1. Customer approved or preferred transporters should also be maintained as Master Data in the system.

2. All approved transporters for that customer should be available while selecting during Delivery/Sales Order.

3. Customer shall pay directly to the Transporter. To-be Billed Transporter

1. For stock transfer from depot to depot or sales return from depot/site to Kalmeshwar/depot, from depot to customer, freight charges are/may be on ‘To- be billed’ basis. 2. After material receipt at destination,

transporter raises the bill for freight charges, which are paid from respective

depot/CMO/Works.

3. For a given customer if he has nominated a transporter then the same should be available in the customer master and while making a sales order the same should be reflected as the default transporters.

Exclusively for Kalmeshwar

 All freight agreements to be maintained by Logistics department on SAP system

preferred transporters.

5. For Stock Transfers, Stock Transport

Purchase Order shall be created in which the Transporter shall be mentioned.

6. This allows the system to book a liability against the vendor automatically.

7.

‘Contracts with Transporters’ is covered under ‘Service Orders’ of Materials Management Module (Process ID 7.1.2). 8. Conditions record shall be maintained in

pricing so that system automatically

determines the freight rate during pricing on the basis of transporter, tonnage and

destination with a validity period. In case of To Pay transporters the system shall

determine a zero value for freight.

9. All types of texts shall be maintained in the system and the same can be available for printout.

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

Payments to Transporters shall be made from Branches, CMO or from Kalmeshwar Works.

Exclusively for Dolvi

 All freight agreements shall be

maintained by Transportation Dept. At Dolvi.

 Payments to Transporters shall be made from Dolvi Works Accounts Department  Freight agreements with transporters to

be maintained in SAP so that system should propose the freight for that particular transporter for particular region, product, truck weight.

4. Transporter agreements should be done in SAP by fixing the terms and conditions with ISPAT and fixing the freight for at least three months. 5. If the terms and conditions are accepted by

transporter, agreement is done in standard format. One copy of agreement is given to account department for their working. This format should be recorded in system and allow to view by any concern person of Ispat.

6. Various agreements are done for different destination for one transporter.

7.

Modification against this format should be available for change in customer, transporter, destination, freight, date, agreement conditions etc to create new contract.

8. Transport agreement(Terms and conditions) should be made available for print out.

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nodes

offices, then hierarchy nodes are to be maintained so that some parts or the whole of the customer’s organisation are benefited by a discount or rebate agreement.

Some customers of Ispat open offices in many different names for tax reasons. To keep track of all their transactions hierarchy is required.

Some customers have complex chain of

organisational structure. To keep track of all the transactions made by individual offices or

departmental platforms hierarchy is required.

customer’s organisational structure so that whenever an order is created for a particular office of the customer, the system will be able to track the office in the hierarchy. Also whenever a discount/ rebate agreement is made with a particular hierarchy node, then all the nodes below it will be benefited by the agreement.

6.0.1.8 Special Stock Partners

Consignment agents of the business are to be maintained as special stock partners for a particular customer who buys through them. Consignment Agent can bill material to any no. of customers on his own sales invoice.

Consignment agents shall be treated as customers and customer master records are to be maintained. In the partner screen of the master record of the end customers who buy through consignment agent, they should be entered using the partner function SB.

(A)

6.0.1.9 Commission Agents

Partner function has to be maintained for commission agents.

Vendor master record shall be maintained for commission agents and their number should be mentioned in the partner screen of the customer. When a sale is made through commission agent, the system will automatically determine the commission in the pricing screen and create a liability . Condition record has to be maintained in such cases to maintain the commission values depending on the agent and volume of sales .

(A)

6.0.1.10 One Time Customers

Customers who enter into business transaction with ISPAT only once are One Time Customers . Separate master record to be maintained in SAP for one time customers.

Maintaining separate master record for all one time customers will lead to wastage of system memory as after the business transaction is over, the master record will be of no use. So all one time customers will be grouped under a dummy name and a master record will be created for that dummy customer using the account group

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CPD or CPDA . When a sales order will be maintained for that dummy customer the system will automatically branch to the address screen and other screens specific to that particular customer.

6.0.2 Sub process Scope: Maintenance of Materials

6.0.2.1 Material All relevant details about materials should be maintained in material master.

Material master record containing all the relevant details pertaining to basic data, sales,

purchasing, storage, plant, valuation, work scheduling etc shall be maintained in SAP. Material master record is to be maintained for each combination of sales organisation, distribution channel, plant , valuation type and storage location. In the sales view the important fields to be maintained are base unit of measure, sales unit, division, delivering plant, material group, tax categories, minimum order qty, minimum delivery qty etc. Over and under delivery tolerance shall be provided in the material master record.

Material codification structure is covered in PP module( Process Id : 8.1)

(A)

6.0.2.2 Customer Material

Customer’s description of a material and specified values of characteristics of a particular material specific to a customer should be maintained in customer material.

Customer material info record containing customers description of the material and the values of characteristics specific to that customer shall be stored in SAP from where it shall be transferred to transactions pertaining to the particular customer. (A) 6.0.2.3 Competitors and Competitor Products

All the relevant data about competitors and

competitor’s products should be maintained in SAP.

Master data shall be maintained for competitors using standard SAP functionality.

Material master data of competitor’s products shall be maintained in SAP using material type WETT. This can be used to compare competitors’

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product range with the company’s product range.

6.0.2.4 Item Proposals

Frequently used materials and their common delivery qtys pertaining to particular customer should be maintained in the system for reordering purpose.

Item proposal shall be maintained for a

particular customer with his frequently ordered materials and their common delivery qty shall be maintained in SAP. Item proposal number shall be entered in master record of the customer so that during an order entry system proposes the frequently ordered materials with their qty’s. For example in case of ISPAT, when a list of material in certain qtys has to be sent to a depot every month, then the list can be entered as an item proposal which can be used in all monthly orders.

(A)

6.0.2.5 Bill of Materials

When a Material is made up of more than one component then it should be possible to capture the material as the sum of all the components.

Bill of material shall be created with the main item as header and components as sub items. During a transaction when the header material will be used the system will explode the header material into all its components. For example, in case of ISPAT, when materials are sold to projects, the product mix contains materials along with accessories. In such a case, we can create a bill of material with all the items to be delivered and enter the header material in the document so that during processing the header material explodes to give all the subitems.

(A)

6.0.3 Sub process Scope: Maintenance of Conditions

6.0.3.1 Prices Prices on the basis of various conditions should be

stored in the system so that during a transaction (Quotation, Sales order, Billing) system can find out the appropriate price on the basis of conditions matching the transactions. Types of prices include material prices, price specific to customer and material, price at which material is to be issued from depots, price decided by the highest bidder in

Pricing condition records are maintained for all required prices and values associated with conditions for the all prices and System will determine the valid condition record on the basis of the access sequence . Variant pricing is to be maintained wherever price will vary on the basis of values of characteristics.

Prices maintained at various levels are :

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auctions, price for scrap and secondary products etc. All Prices are decided at CMO.

HR Products

 Made to Order – these are Customer wise, grade wise, width wise, thickness wise.  NCO Price – This is region / branch wise,

thickness wise.

 Narrow Slit Price – this is region / branch wise, width wise, and thickness wise.

 Kalmeshwar Prices (HR from Dolvi to KLM) – these are thickness wise.

 All the above prices are for HR in Coil Form. For material in Sheet / Plate form additional charges are included.

 Secondary Prices – material wise. DRI Products

 This is material wise and region wise. Pig Iron Products

 This is material wise and region wise. Lime Products

 This is material wise. Coke Products

 This is material wise. CCS/CGL/CR

 Regular Customer

Customer wise, Material wise, grade wise, thickness wise, Widthwise, process wise, Region wise.

 Trade

Region wise, Material wise, grade wise, thickness wise, quantity wise.

 Quotation : Make to Order DRI Products Pig Iron Products

New customer (CCS/CGL/CR)  Sales Order :

Make to Order NCO Price Trade MTO Price Trade Prices Narrow Slit Price

Kalmeshwar Prices (HR from Dolvi to KLM) -These are based on thickness.

Conversion Prices. Export Customer prices.

Secondary Prices – material wise. DRI Products

Pig Iron Products Lime Products Coke Products Regular Customer New customer

Secondary Prices – material wise. CR/CCS/GP sales prices ( Trade, Regular, new Customer).

Scrap & By product sales prices.

Stock Transfer prices shall be maintained separately.

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 New customer

Material wise, grade wise, thickness wise, Width wise, process wise.

 Secondary (Trade) Product Prices – material wise. (CR/CCS/GP).

Whenever there is revision of prices (In case of Trade and projects) CMO circulates the prices to all branches, depots and plants.

Each depot has its own pricelist for the material to be sold from the depot.

Depot specific prices decided by CMO are circulated to the Depots periodically, in the form of a price list. Depot also sends material to the customer on price depending on negotiation with customer.

Revision in the prices is informed to Branches as well as sales person through mail.

All material sales through export should have customer specific prices and which are order dependent.

Prices for Sales Of Services.

Price revision shall be handled by changing all condition records or New prices shall be uploaded with the help of BDC.

Authorisation for changing prices will be given to appropriate levels.

Depot specific prices shall be maintained in the system so same shall be applicable for all sales made from depot.

In case of exports, prices will be customer-specific.

6.0.3.2 Discounts Discounts on the basis of various conditions should be stored in the system so that during a transaction system can find out the appropriate discount on the basis of conditions matching the transactions. Discounts maintained at various levels are as follows:

1. Discounts Before Sale (maintained only at Dolvi) Discounts which are maintained in the quotation are Discounts before sale.

Types of the discounts are:

Discount condition records shall be maintained with conditions and values associated with conditions. While processing a transaction system will follow the access sequence to find the valid record matching the condition of sales. Discount before sale is maintained in the pricing procedure which shall be applicable at quotation level (for Dolvi only). Discounts are maintained as per the requirement ,which shall be :

1. Customer-Specific discount; Conditions shall be maintained wherever required.

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 Cash Discount.  Turn over Discount  Quantity Discount

All discounts should be maintained in the system.

2. Discounts During Sales

Various Discounts are given to customers during sales and are adjusted in the invoice itself. Types of discounts given to customers are:

 Off-Width Discount in case of Kalmeshwar Trade.

 Quality grade, Discount in case of Kalmeshwar Trade

 Special discount

All discounts should be maintained in SAP.

3. Discounts After Sale

Many times discounts are given for a specific period after sales. These discounts are:  Monthly /Qtrly/Yearly Off take Rebate  Turnover Discount (TOD)

 Quantity Discount (QD)

 Over Billing Discount (Price Difference)  Quality Discount

 Special Discount/Rebate  Freight Subsidy Discount.  Export Support Discount  Purchase order wise Discount

These discounts are passed on to customer at the end of specific period or sale. Which are in the form of credit notes. Billing should be done for the basic price and the rebate amounts should be mentioned in billing (but should not be considered for

2. Material specific Discounts: Conditions shall be maintained wherever required.

3. Customer-Material specific: Conditions shall be maintained wherever required.

This discount condition shall be active from quotation stage. These discounts are maintained at header as well as item level, depending upon the company policy.

Discounts during sales

1. Off-Width Discounts, Quality Discount, special Discounts come under this category. 2. Discount condition values for off-standard

specifications shall be maintained in the system before hand.

3. The system shall pickup the discounts automatically based on the characteristics of the material that is being picked up during delivery.

Cash Discount is maintained at header level and Off-Width Discounts, Quality Discounts are maintained at item level.

This discount condition shall be active in Billing. 1. Rebates shall cover all Discounts given

retroactively, which are based on sales volumes – quantities & volumes over a period of time.

2. Ideally, all rebate agreements shall be maintained in the SAP R/3 system before the Rebate is announced.

3. Even other wise, retroactive rebate agreements shall be maintained on a later date.

4. Whenever a Rebate is being declared condition records shall be maintained for customer, hierarchy node, and material or customer-material combination.

5. The Rebate agreement shall consider all the billing documents – invoices, credit memos &

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calculating the net billing value) and later on credit note should be passed to the customer.

Immediately after billing the discount amount should be shown as liability against that customer until a credit note is passed.

debit memos which are relevant for rebate processing.

6. Issuing a credit memo to the customer for the accumulated rebate total shall do the final settlement.

For Rebate agreements with long periods, ISPAT shall have the option to post the accruals in the intermittent period automatically so that the accumulated value of a rebate is recorded for accounting purposes.

6.0.3.3 Freight Freight on the basis of various conditions should be stored in the system so that during a transaction system can find out the appropriate freight on the basis of conditions matching the transactions. Freight contract is made with transporter for pre-paid transport on the basis of destination and material. Mostly it is on the basis of destination which is maintained at factory as well as depot level. For the material supplied from third party transport is not arranged by Ispat.

In case of stock transfer the freight is charged as per contract with the transporter.

In case of Export sale there should be two freight elements: from plant to port & port onwards to end customers.

In case of Ex-Works (Domestic & Export) no freight will be charged (i.e. To Pay basis) .

All freights (Rail, Road, Sea) agreements with transporters to be covered.

Handling charges at Nagothane/ Nagpur Railway Yard to be taken into consideration at the time of sending material by road up to Nagothane/ Nagpur Railway Yard and from there onwards by rail to end customers. Provision should be there to track the

Freight condition records shall be maintained with conditions and values on the basis of agreement with the transporter, which is destination wise.

Freight is determined automatically on the basis of Incoterms, Ship-to-Party, Destination,

Unloading Point and weight etc. Freight is maintained at item level.

All freights (Rail, Road, and Sea) agreements with transporters/railways should be covered in MM (Process ID 7.1.2).

Loading and handling charges at port if paid separately by customer shall be created as separate record.

In case of port being treated as a plant, stock transport order will be created where the freight will be determined from plant to port. Freight from port onwards to end customer will be determined in the sales order from port to end customer.

Same will be the case when Nagothane/ Nagpur Railway Yard is being treated as a plant.

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stock at Nagothane/Nagpur Railway Yard. Individual freights up to Nagothane/ Nagpur Railway Yard and from Nagothane/ Nagpur Railway Yard onwards to end customer should be captured.

Handling charges at Nagothane and freight from Dolvi to Nagothane, Kalmeshwar to Nagpur Railway Yard will be determined in the stock transport order while the freight from

Nagothane/ Nagpur Railway Yard onwards will be determined in the sales order from Nagothane to end customer.

With Nagothane/ Nagpur Railway Yard and Port being treated as plant, system will allow tracking of stock at Nagothane/ Nagpur Railway Yard and Port.

6.0.3.4 Taxes

While processing a transaction, the system should determine the taxes on the basis of prevailing tax rates maintained in the system.

Tax condition records shall be maintained in the system for various levels of taxes, like central sales Tax, State sales tax, turn over tax, Surcharge etc. which will be automatically determined during a transaction depending upon the delivering plant, ship to party and unloading point.

Various tax codes are maintained for various tax scenarios and forms applicable.

Tax rates are maintained in UTXJ condition type in the tax procedure TAXINJ on the basis of various access sequences.

Tax shall be Item level condition.

(A)

6.0.3.5 Excise While processing a transaction, the system should determine the excise rate on the basis of prevailing excise rates maintained in the system for a material.

Excise is a duty which is charged on all finished products which are manufactured

Excise rates for finished goods are based on chapter ID. Excise authorities have declared Excise tariff rate on the basis of material chapter ID. This is maintained in the Excise Rate

maintenance (J1ID) screen.

Excise for a material is determined on the basis of material chapter ID and the final indicator for

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plant and customer.

6.0.3.6 Octroi

Octroi is a tax charged by municipal Corporation for outside material coming inside Municipal Corporation Area. This is charged on the final invoice value. In case of Ispat (Kalmeshwar, Dolvi & Depots) Octroi is generally paid by customer.

Octroi shall be maintained as a condition type,

and will be maintained at transaction level. _(A)

6.0.3.7 Entry Tax

Entry Tax is a tax charged for material coming inside city /MIDC Area. This is applicable only in

Maharashtra. This is charged on the final invoice value.

For example, material supplied from Dolvi to Kalmeshwar and vice versa.

Entry tax shall be maintained as a condition

type, and will be maintained at transaction level. ( A )

6.0.4 Sub process Scope: Maintenance of Agreements

6.0.4.1

Customer Material Information

Customer’s description of a material and specified values of characteristics of a particular material specific to a customer should be maintained in customer material.

Customer specific information on a particular product should be captured in the system so that during transactions the data of the material specific to the customer can be transferred to the transaction.

Customer-Specific Material related information shall be stored in the system.

Customer Material Number, Customer Material Description, delivery priority, partial delivery, maximum no of partial deliveries & delivery-tolerances shall be stored.

(A)

6.0.4.2

Commission to consignment agent.

Commissions to consignment agents are to be paid retroactively as rebates over a period of time.

Rebate agreements shall be maintained for paying commissions to consignment agents over a period of time.

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6.0.4.3

Commission to Commission agent.

Commissions to few Commission agent are to be paid retroactively as rebates over a period of time.

Agents Region Commission



PSL Impex Western 1%



Murari South 1%



Chao Agency North 0.4% in SIP &



IMIL, 0.25% in

HR



Saini Associates North 1%



For Chandigarh & some parts of Ludhiana the agent is

Chao, and for rest of north is Saini Associates.

In case of Export the commission is paid directly on the basis of shipment.

Rebate agreements shall be maintained for paying commissions to specified commission agents over a period of time.

In case of exports, the commission is paid directly and determined in a condition type which will create a liability in the system.

(A)

6.0.4.4 Contracts with customers.

Contracts with customers for supply of materials, services etc should be stored in the system.

Contracts shall be maintained in the system for quantity, value, services, rentals etc with reference to which release orders shall be created while supplying to the customers.

(A)

6.0.5 Sub Process Scope: Maintenance of credit Master Record

6.0.5.1 Credit limit maintenance

Credit limit should be maintained for a customer so that system should trigger or block the transaction if the credit exceed beyond the given permissible limit. This should be removed only by an authorised person. Both in terms of value and number of days. Value tolerance should be allowed.

Credit limit shall be maintained in SAP for customer for a particular credit control area, which will be compared with the customer’s outstanding while processing transactions. In centralized credit management that is credit management at group level, one credit control area is assign to all the company codes so that when a customer buys from more than one company code, his credit exposure is evaluated at group level.

In case of hierarchy nodes, credit limit will be maintained at group level covering all the nodes for a given customer.

(A) Assigning of time period check with credit limit of customer is not available in standard system – ( F )

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6.0.5.2 Customer maintenance on the basis of risk

Customers should be segregated on the basis of their commercial risks through evaluation of their past business records.

Customers shall be segregated into high risk, medium risk, low risk and new customers in credit master record of the customer. This risk category will eventually determine the type of automatic credit check to be conducted by the system along with the document credit group and the credit control area while processing a transaction for that particular customer. The following are the type of automatic credit check available in the standard sap R/3 system.  Static credit check: The customers credit

limit is compared with the sum of all open sales orders, open deliveries, open billing documents and open billing documents which have already been passed onto accounting but not paid by the customer.

 Dynamic credit check: The customers credit limit is compared with the sum of all open sales orders, open deliveries, open billing documents and open billing

documents which have already been passed onto accounting but not paid by the

customer. In addition the dynamic credit limit check specifies a horizon period. While calculating sum of the values of all open sales orders, the system does not consider those open items in the sales orders which have a delivery date beyond the horizon period.

 Critical fields: The system will reinstitute a credit check if certain credit sensitive fields, like payment terms are changed in the transaction from there original values in the master records.

 Review date: the credit check is

performed only on specified dates and items

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processed after the review date are being considered.

 Open Items: This is the ratio of all open items, which are over due by a certain number of days to the customer’s balance.  Maximum document value: here one

value is specified which if exceeded in the transaction the system will react with warning or error message.

 Oldest open Item: here we specify number of days. If the oldest of all the open items exceed this number of days, then system will react with warning or error message.

 User specific Credit check.

 Assigning of time period check with credit limit of customer is not available in standard system.

6.0.6 Sub process Scope: Maintenance of Other Master Records

6.0.6.1 Terms of

Payment

Various Payment terms as per customer requirement should be maintained in the system.

Following are the Payment Terms required in SAP.  100% Advance

 Against Proforma Invoice

 X% advance. Balance against proforma invoice before delivery.

 Letter of Credit.  LC Awaited

 Financial Arrangements are awaited

( In case of Kalmeshwar If payment term is financial arrangement is awaited then

1. Various terms of payments shall be

maintained in the SAP (Tr.Code OBB8). This shall be attached to customer master data. It will be applicable during transaction and shall be changed at transaction level.

2. The various financial documents will be created and allocated to the sales document in the billing screen, so that the system can track the financial documents value

utilisation as per transactions.

3. The possibility of tracking in case of Barter, part interest paid and part interest free, credit balance, X% advance. Balance against

(A) / 3 - (E)

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document should be block for production as well as delivery)

 Interest Free Credit for [number of days] Days  Part period to attract interest and part without

interest.



Against Despatch (Despatch Documents)



Against Delivery (against receipt of material at customer site/ works.)

 Barter

 Against Credit Balance  Post Dated Cheques

 Hundi discounting by Party under his own Limits.

 Against Bank Guarantee.  Clean Bill Discount.  Open credit with interest.  Open credit.

All retrograding payment terms are to be approved by competent authority.

proforma invoice before delivery ,bank guarantee, Against Credit Balance,

performance guarantee, LC Awaited, clean bill discounting, Open credit with interest and financial arrangements awaited shall be explored with major modification.

4. Approval process for retrograding payment terms shall be possible.

6.0.6.2 CT2 / CT3

CT2 / CT3 master should be maintained in the system.

CT2/CT3 excise exemption form, which is to remove the excisable goods/material with out payment of duty if the material is getting used in the

manufacturing of material, which is dutiable.

1. CT2/CT3 form shall be maintained in the excise form of Add on CIN functionality. Forms shall be maintained under tax codes in SAP.

2. It is not possible to maintain value wise tracking of material removed against particular form in Standard SAP. Shall be done using ABAP functionality.

3. Excise duty shall be nil if the material is removed under CT2 / CT3 form. Excise invoice shall be generated with nil excise duty.

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6.0.6.3 Incoterms

Various internationally accredited terms of sales like Ex-works FOR, FOB, CFR, etc. should be maintained in the system for each customer.

Incoterms are terms of sales and passing the risk of delivery.

Following incoterms shall be maintained in SAP:



EXW - Ex Works



FOR - Free on Road



FCA - Free Carriage and Freight



FOB - Free On Board



CFR - Cost and Freight



CIF - Cost, Insurance and Freight



C&F – Cost and Freight

Incoterms shall be specified in the customer master record from where it should be copied into transactions.

Incoterms are used to determine the freight. Prices are re-determined on the basis of Incoterms.

Any additional incoterms shall be maintained as per requirement.

(A)

6.0.6.4 Batch Search Strategy

Depending on pre defined conditions the system should be able to search for specific batches from among many batches.

On the basis of dependencies, selection criteria such as characteristics values (Grade, Width, Thickness) Allocation Number, Status, production date, form of the material, material colour, top colour, bottom colour, of the material which would specify at material master level

classification), and sort rules (sequence by which batches are sort out in the list), specific batches shall be selected by the system.

In search strategy values are defined according to which system find the batches.

This can be maintained at Quotation level for NCO, Sales order level and Delivery level.

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6.0.6.5 Bank Guarantee Master, Performance Guarantee Master & Bonds

Bank Guarantee master & Performance Guarantee master should be maintained in the system with the validity. The above can be received from a customer or could be given to the customer as part of

submitting a tender. Performance guarantee given to the customer should also be recorded in the system – generally done in case of railways. The bank guarantee submitted should have details of the project or the Tender details for railways for which the bank guarantee has been submitted.

System should give status for expiry of bank guarantee also (with advance reminders) so that customers can be asked to return the bank guarantees.

LC MASTER to be maintain in the system

Bank guarantees, which are classified in to two types:

 Those given to customer

 Taken by customer (performance guarantee).

Shall be maintained in payment guarantee customer document.

Separate component shall be developed to maintain and track bank Guarantee and other payment guarantee documents like LC, Hundi, and PDC etc. will be covered in TR module (Process ID 3.7).

LC details to be maintained in payment guarantee option under foreign trade.

( A & C)

6.0.6.6 TDC Master All the Technical Delivery Conditions of a particular material grade should be maintained in SAP.

TDC shall be covered in QM HSM( Process ID

9.2) ( A )

6.0.6.7 Cost Extra / Cost Matrix

The cost extra / cost matrix should be maintained in the system.

Cost : (CR/GPGC/CCS)

The total cost of production , interest & depreciation & expenses for transportation to loading port Cost extra : (HR)

Cost of production & other expenses over & above one basic grade.

Cost Extra /matrix and related shall be covered

in CO. ( Process ID ) ( A )

6.0.6.8 Vendor Master Vendors such as, Freight forwarders, inspection agencies etc to be maintained in the system

Vendor Master shall be covered in MM module

SAP SD Blue Print

in Sales

suggested by CVS IT

Introduction

To-Be Business Processes of Sales & Distribution for ISPAT Industries

To-Be Business Processes of Sales & Distribution for ISPAT Industries

To-Be Business Processes of Sales & Distribution for ISPAT Industries

To-Be Business Processes of Sales & Distribution for ISPAT Industries

To-Be Business Processes of Sales & Distribution for ISPAT Industries

To-Be Business Processes of Sales & Distribution for ISPAT Industries

Contents

Serial

Number

Topic

Page Numbers

Start

End

1

Current Enterprise Structure

4

5

2

Product Range

6

7

3

Enterprise Structure on SAP R/3 system

8

14

4

Different Types of Sales

15

19

5

Master Data

20

40

6

To-Be Business Processes

41

169

7

Summary Of Integration Points

170

243

8

Print Outputs

244

245

9

Master Data Coding Logic

246

248

10

Reports

249

253

11

Role Matrix

254

261

6

in Sales

suggested by CVS IT

To Be Process suggested by CVS IT

Gaps/Comments

1. Current Enterprise Structure

Companies in ISPAT

Depots

Manufacturing Locations

Manufacturing Plants

Consignment Agents

Marketing Office / Branch /

Regional Office

Nariman Point

Mumbai

Pune

Ahmedabad

Indore

Ludhiana

_{in Sales}

_{suggested by CVS IT}

_{SIP- Loading Pont for warehouse B Pay Loader}

_{SIP- Loading Pont for warehouse C Pay Loader}

_{SIP- yard 346}

_{SIP- SILO}

_{SIP- Loading Pont for warehouse A Conveyer}

_{HSM-coil yard loading point NO 02}

_{HSM-coil yard loading point NO 03}

_{HSM-roll shop bay loading point NO 01}

_{HSM-roll shop bay loading point NO 02}

_{HSM-open yard – near to coil yard}