SAP - Sales and Distribution

Overview
 SAP R/3 Module

• The R/3 Sales and Distribution system is a complete solution

for handling sales, shipping and billing tasks in any
industry, and is a fully integrated component of the R/3
System.
 SAP R/3 Integration Model

Sales Order Material Availability Check

Customer Shipment
Sales
Sales& & Transfer of Requirements
Customer Distribution
Credit Limit Distribution Goods Issue

Invoice

Production Order
Production
Production Production Order Receipt
Materials
Materials
Planning
Planning Management
Management
Production Cost Accounting Document

Order
Purchase

Receipt
Invoice

Goods Receipt
Finance
Finance& & Vendor
Receivable Accounts / Cash Receipt
Controlling Vendor
Controlling Accounts Payable
 Contents

1. Basic sales cycle.

2. Concepts in SAP SD.
3. Master data creation.
4. Document flow
5. SAP Sales cycle
6. Sales Information System
Sales and Distribution
Enterprise Structure Overview
 Organization Terms
Finance

Client
• A grouping of companies with a
common purpose.
Example: “001”

Company Code
• Legally independent entity, within a
client, that has its own balance sheet
and creates its own profit-and-loss
statement.
Example: Co. Code “0001”
 Organization Terms
Sales and Distribution

Sales Organization
• A selling unit
Example: 0001

RETAIL STORE
Distribution Channel
• A customer classification
Example: Retail, Institution
 Organization Terms
Sales and Distribution

Division
• A product group
Example: Foods, Cosmetics

Sales Area
• The combination of sales
organization, distribution
channel and division
 Organization from Sales Perspective

Client

Sales Org Sales Org

Distribution Distribution Distribution Distribution

Channel Channel Channel Channel
Sales Area

Division Division Division Division Division Division

 Sales Organization Structure

Sales Area: is a unique combination of a Sales Organization, Distribution Channel, and

Division

It is used within SAP for sales reporting, analysis, and control. All Customers are allocated
to Sales Areas
Internal Sales Structure

DCME Company Code

Sales Org Sales Org

Ropar

OE OE Distrib Channel
(India) (Export) Miscellaneous

Tractors CARS Auto OTHERS Miscellaneous Division

Sales Area Miscellaneous
 Organization Terms
Sales and Distribution

Sales Offices
• A subsidiary of a Sales Area
(Sales Region)
Example: North India

Sales Group
• A subgroup of Sales Office
(District)
Example: Chandigarh
 Organization Terms
Sales and Distribution

Sales Person
• Individual person assigned
to a Sales Group
Example: 0001
 Organization structure

It represent the organizational structure of any company.

It can be structured from various point of view like -

Accounting

Materials Management

Sales and Distribution.

Integration SD /MM/ FI
 Plant

A plant is an Organizational element with in a company.

It can:

1. Produces good

2. Renders services

3. Makes goods available for distribution.

4. A plant is always linked to one company code but can be assigned to different sales
organizations.

Client
Client

Plant 1 Plant 3

Plant 2 = Storage Locations

Company Code 1 Company Code 2
 Shipping Point

A Fixed location that carries out the shipping activities.

Each delivery is processed by one shipping point only

Client 0001

Plant 0001 0002

Shipping point Truck Railway Air

 Organizational Structure in Accounting

Client
Client

Company Codes 0001 0002 0003

 Master data
Customers
(with accounting)
Discounts
Materials and Surcharges

Sales &
Product Bills of
Proposals Distribution Material
Data

Taxes Prices

Customer/Material
Info. Record
 Master Data …

Basis for Sales Processing

1. Business Partners

2. Products /Services

3. Price Master Record

All departments sales and Distribution , Accounting,

Materials Management access the same master data.
 Customer Master Data
1.General Data : Customer Name, address, mode of
communication

2.Sales related data: Pricing, shipping conditions, delivery

priority . This can be defined per sales area.

3.Company code data: Finance Transaction related data.

Sold
SoldTo
ToParty
Party
Personnel Ship
ShipTo
ToParty
Party
Personnel
Business
Business
Partner
Partner
Functions
Functions
Bill Payer
BillTo
ToParty
Party Vendor Payer
Vendor
 Material Master

Classification:
1. Products
2. Services

It maintains all information necessary for the management of a

material and its stocks, as well as its use

Material type: It has important control functions like

1.Grouping field selection functions for a material
2.Defining the screen sequence
3.Number assignment and defining number ranges
 Pricing Master

In the standard R/3 system,the basis of pricing during sales

order processing is the gross price of a material.

The following kinds of pricing are predefined.

1. Material Price
2. Price-list Price
3. Customer-specific price/User defined Price
 Sales and Distribution Processing

Sales Support Sales

SALES INFORMATION SYSTEM

activity

MATERIALS MANAGEMENT
Sales Inquiry

Quotation Contract

Delivery
Delivery
free Sales
Sales Scheduling
free of
of Returns
charge order
order agreement
charge

Shipping
Delivery

Billing
Debit memo Invoice Credit memo

FINANCIAL ACCOUNTING
 Sale Order Processing

Process Cheque receipt

in SAP

System - SAP
Sales Executive

Process Sale Order

Credit limit check Create Delivery order , Generate Invoice
in SAP from SAP
Availability Check Pick list & Post goods issue
 Reference Document

1.If you create a sales document with reference to a preceding

document the system copies most of the data from this preceding
document.

2.Any changes made to the master records after the creation of the
preceding document,have no effect on the sales document.

3.However,if you create an additional item in the sales document,the

system determines the data for this item from the master records.

4. SAP has different sales order types for which we specify the control
features in customizing.
 Delivery
It is the process of preparing, organizing and handling the
shipping process .

It consists of :
1. Creating a delivery document
2. Picking and packing
3. Printing shipping conditions
4. Posting goods issue and recording the financial transaction
 Goods Issue

•Reduces stock.

•Posts the value change to the stock accounts in inventory

•Accounting.

•Reduces delivery requirement

•Updates the document flow for sales and delivery documents

 Billing

It is the process of invoicing the customer for the goods

delivered or serviced.

Billing includes:
1.Creating invoices for deliveries and services
2.Creating Credit and Debit memos on the basis of
requests
3.Canceling business transactions
4.Transferring posting data to financial accounting

When the invoice is saved the system automatically generates

an accounting document which updates the corresponding
general ledger accounts
 Invoice Creation

1.Automatically creates an accounting document that updates the general

ledger account for revenue.

2.Updates the status in all related sales documents.

3.Updates the customers credit record.

4.Updates sales statistics for the sales information system.

5.Updates controlling elements and profit center accounting.

 Payments

Customer payment includes receiving and recording the customer’s

payment , increasing the customer’s available credit, reducing
receivables
 Document Flow in SAP

Document Flow
Reporting
 REPORTING
Sales Information System
Analysis of Sales

Drill Reporting
Down
SIS Tool

Instant Graphics
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Thank You