Unit Overview

 SD Organizational Structure

 SD Master Data

 SD Processes
• Order-to-Cash Process

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SD Master Data

Customer Master

Material Master

Sales Condition

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Customer Master Data

 Customer Master
• Contains all of the information necessary for processing
orders, deliveries, invoices and customer payment
• Every customer MUST have a master record
- But you can have one-time customers

 Created by Sales Area

• Sales Organization
• Distribution Channel
• Division

 The customer master information is divided into 3 areas:

• General Data
• Company Code Data
• Sales Area Data

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Customer Master

General Information relevant for the entire organization:

Name
Address
Client XXX Communication

Company Code specific information: Sales Area specific information:

Acc. Mgmt
Payment Sales Office Currency
Bank
Company Code US00 Sales Org. UW00

Company Code DE00 Sales Org. DS00

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Material Master Data

 Material Master contains all the information a company needs

to manage about a material

 It is used by most components within the SAP system

• Sales and Distribution
• Materials Management
• Production
• Plant Maintenance
• Accounting/Controlling
• Quality Management

 Material master data is stored in functional segments called

Views

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Material Master Views

Sales Data

Basic Data Purchasing Data

Mat. Plan. Data

Material Master Forecasting Data

Storage Data

Controlling Data Quality Data

Accounting Data

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Material Master

General Information relevant for the entire organization:

Name
Weight
Client XXX Unit of Measure

Sales specific information: Storage Location specific information:

Delivering Plant Stock Qty

Loading Grp
Sales Org. UW00 Storage Loc. FG00

Sales Org. UE00 Storage Loc. TG00

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Condition Master Data (Pricing)

 Condition master data includes:

• Prices
• Surcharges
• Discounts
• Freights
• Taxes

 You can define the condition master to be dependent on

various data:
• Material specific
• Customer specific

 Conditions can be dependent on any document field

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Output

 Output is information that is sent to the customer using various media, such as:
• Electronic Data Interchange (EDI)
• Email
• Mail
• Fax
• XML

 Functions for sales, shipping, transportation, and billing

 Examples of output types in SD processing are order confirmations, freight lists, and invoices
• The output type defines how the output should be transmitted (sent via EDI, or as a print-out)

 Generation of
• Sales activity output (e.g. customer telephone calls, mailing campaigns)
• Group output (e.g. freight lists)

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Unit Overview

 SD Organizational Structure

 SD Master Data

 SD Processes
• Order-to-Cash Process

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Sales Order Process

Pre-sales
Activities

Receipt of
Sales Order
Customer
Entry
Payment

Invoice Check
Customer Availability

Post Goods Pick

Issue Materials

Pack
Materials

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Pre-Sales Activities (CRM Light)

 Sales Support is a component of SD that assists the processes of sales, distribution, and marketing of
companies as well as their product and services to its customers

 It contains the following functionality

• Creating and tracking customer contacts and communications (sales activity)
• Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes

 Pre-sales documents: Inquiries and Quotations

 The ultimate goal of all pre-sales activities is to equip the sales technician with all the information necessary to
negotiate and complete the potential sale
• Past sales activity
• Past communication
• Contact information
• General company info
• Credit limits and usage
• Current backorders
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Inquiry

 An inquiry is a customer’s request to a company for

information or quotation in respect to their products or services
without any obligation to purchase
• How much will it cost
• Material/Service availability
• May contain specific quantities and dates

 The inquiry is maintained in the system and a quotation is

created to address questions for the potential customer.

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Quotation

 The quotation presents the customer with a legally

binding offer
• to deliver specific products or a selection of a certain amount
of products
• in a specified timeframe
• at a pre-defined price.

 Legally binding on the vendor

 Conditions can apply at various levels:

• to the entire quotation
• at item level, to the material to be supplied or to the planned
procurement in the case of services
• at service-line level for individual services (tasks or activities)

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Sales Order

 Sales order processing can originate from a variety of documents and activities
• Customer contacts us for an order: phone, internet, e-mail
• Existing Contract
• Quotations

 The electronic document that is created should contain the following basic information:
• Customer Information
• Material/service and quantity
• Pricing (conditions)
• Specific delivery dates and quantities
• Shipping information
• Billing Information

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Sales Order

 The sales document is made up of three primary areas:

• Header
- Data relevant for the entire sales order: e.g.: customer data, total
cost of the order

• Line Item(s)
- Information about the specific product: e.g.: material and quantity,
cost of an individual line

• Schedule Line(s)
- Uniquely belongs to a Line Item, contains delivery quantities and
dates for partial deliveries

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Sales Order

 The sales order contains all of the information needed to process your customers request

 The following information is determined for each sales order:

• Delivering Schedule
• Shipping point and route determination
• Availability Check
• Transfer of requirements to MRP
• Pricing
• Credit limit check

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Delivery Scheduling

 When an order is created you must enter a requested delivery date for the order or each line item.

 The system will then determine a delivery timeline, this will be used when determining our material availability, or
ATP (Availability to Promise) date.

 The system will determine this date using forward and backward scheduling rules you have defined.

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Backward Scheduling

Order Material Transp. Goods Requested

Date Availability Sched. Loading Issue Delv. Date
1st 2nd 3rd 4th 5th 6th

Pick & Pack Transit

Transp. Loading
Time Time
Sched. Time
(2 days) Time (1 day) (2 days)
(1 day)

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Forward Scheduling

Requested New
Order Material Transp. Goods Delv. Delv.
Date Loading Issue Date Date
Availability Sched.
1st 2nd 3rd 4th 5th 6th 7th
Transp. Loading Transit
Pick & Pack Sched. Time Time
Time (2 days) Time (1 day) (2 days)
(1 day)

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Shipping & Route Determination

 During the creation of the sales order, the system must determine the shipping point from which the material will
be shipped and the route the material will take to get from your warehouse to your customers location.

 A shipping point is determined for each line item within the order.

 The route determination is used to define the transit time of the material that we used in scheduling.

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Availability Check

 Availability Check
• Determines the material availability date
• Considers all inward and outward inventory movements

 Proposes 3 methods of delivery:

• One-time delivery
• Complete delivery
• Delayed proposal

 Rules are created by USERS

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Pricing

 The system displays pricing information for all sales documents on the pricing screens at both the header and
the line item level
• Header pricing is valid for the whole order and it is the cumulative of all line items within the order
• Line item pricing is for each specific material.

 The system will automatically search for price, discounts, surcharges, calculated taxes and freight

 You have the ability to manually manipulate the pricing at both the header and line item level within the sales
order by entering a condition type and amount
• Taxes and freight can be set-up automatically so we can not manually enter them

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Credit Check

 Allows your company to manage its credit exposure and risk for each customer by specifying credit limits

 During the sales order process the system will alert the sales report about the customers’ credit situation that
arises

 If necessary, the system can be configured to block orders and deliveries

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Shipping & Transportation

 The shipping process begins when you create the delivery document for the sales order. This document
controls, supports, and monitors numerous sub-processes for progressing the shipping:
• Picking
• Packing
• Post Goods Issue

 Integrated with the Material Management (MM), extended Warehouse Management (eWM) and Finance (FI)
modules

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Shipping

Sales Order 1 Sales Order 4 Sales Order 5

Sales Order 2 Delivery 8…13 Delivery 8…16

Sales Order 3 Delivery 8…14

Delivery 8…12 Delivery 8…15

Order Partial Complete

Combination Delivery Delivery

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Delivery Creation

 Checks order and materials to determine if a delivery  Updates route assignment

is possible — delivery block (hold), completeness
 Assigns picking location
 Confirms availability
 Updates sales order
 Determines total weight & volume
 Determines batches
 Generates packing proposal
 Quality check (if needed)
 Checks scheduling
 Updates sales order
 Considers partial deliveries

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Delivery Document

 The Delivery Document initiates the delivery process and is the control mechanism for the following processes:
• Picking
• Packing
• Loading
• Posting Goods Issue

 Changes to delivery are allowable - products, quantities

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Picking

 Quantities based on delivery note

 Assigned date when picking should begin

 Automated storage location assignment

 Supports serial number/lot number tracking and batch management

 Integrated with Warehouse Management (WM)

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Loading and Packing

 Identifies which packaging is to be used for specified products (customer preference and UCC-128
considerations)

 Identifies and updates accounts associated with returnable packaging

 Tracks the packed product by container

 Insures weight/volume restrictions are enforced

 All packed items are assigned to the required means of transportation

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Goods issue

 Event that could indicates the legal change in ownership of the products
• It signals that the goods have left the premises of the seller. Legal change in ownership depends on the “Incoterm” and
what is written in the sales order terms and conditions.

 Reduces inventory and enters Cost of Goods Sold

 Automatically updates the General Ledger (G/L) accounts

 Ends the shipping process and updates the status of the shipping documents

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Billing

 The billing document is created by coping data from the sales order and/or delivery document.
• Order-based billing
• Delivery-based billing

 The billing process is used to generate the customer invoice

 It will update the customer’s credit status.

 The billing document will automatically create a debit posting to your customer’s sub-ledger account and credit it
to your revenue account

 It is at this point that the sales process is passed over to Financial Accounting to await payment.

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Billing Methods

Delivery 8…20 Invoice 9…45

Delivery based Order 6
Invoicing Delivery 8…21 Invoice 9…46

Delivery 8…33
Collective Order 9
Delivery 8…34 Invoice 9…68
Invoicing
Order 14 Delivery 8…56

Invoice 9…91
Split
Order 32 Delivery 8…86
Invoicing
Invoice 9…92

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Payment

 Payment is the final step in the sales order process, this step is managed by the Financial Accounting
department.

 Final payment includes:

• Posting payments against invoices
• Reconciling differences between payment and invoice

 Payment will create a posting clearing the liability in the A/R account and increases your bank account.

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Document Flow

 The document flow and order status feature allows you to find the status of an order at any point in time. The
SAP updates the order status every time a change is made to any document created in the customer order
management cycle (Order-to-Cash).

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Sales Order Process Debugging

 “Never again did I learn so much in such a short time, because twenty participants
made mistakes for me! You cannot make so many mistakes all alone”

SAP Co-founder Klaus Tschira

on his experiences teaching COBOL
to clients at IBM

 Document Flow
• Gives Order Process Status

 List of Sales Orders (VA05)

• Tool to Find Order
• Need student’s user id/data set number

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