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Sales and Distribution Lockheed Martin SAP SD Level 1 TrainingPrashant BelgaonkarSAP SD Consultant Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Agenda for the overviewIntroduction and Overview of SAPSales and Distribution Process introductionOverview of SD Enterprise StructureOverview of Master Data Relevant for SDOverview of SD Business Process

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.SAP OverviewSAP stands for Systems, Applications and Products in data processing. A ERP dynamo10 million users, 30,000 installations, 1000 partners, 21 Industry solutions. Customer world-wide, mostly Fortune 500 companies. 95% of the top 100 German companies use SAP. SAP is the fourth largest software company in the world. The SAP R/3 system is a business software package designed to integrate all areas of a business.Mechanisms to execute the business processes used in the selling, shipping and billing of products and servicesTightly coupled data flow to the other SAP modules Integration Flexible and robust functionality that is tailored through configuration

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.ManufacturingPurchaseSalesFinance Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Integrated across the primary and support processes

MarketingManufacturingMaterialsDistributionFinanceEngineeringSalesHuman ResourcesPlanning and Execution Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.SD ComponentsSalesSupportMasterDataShippingSalesForeignTradeBillingSalesInfoSystemTransportation Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales & DistributionO2C - Process Flow Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Supply Chain Process

Customer Order

PickingGoods IssueBilling

Accounts Receivable

Final Payment Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.SAP Process StepsQuotationSalesOrderSalesShippingDeliveryNotePickingPost GoodsIssueBillingBillingFIA/RPostIncomingPayment Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales Inquiry & QuotationSupport pre-sales processesAre time sensitiveAutomatic availability checkAutomatic pricingNo impact to FICan be used as reference documents

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales Sales OrderCore of customer order managementNo impact to G/LCan reference existing documentsCopies key information from master data Automated standard functions ...availability checkMRP updatingpricingcredit checkdelivery schedulingexport controlshipping & route determination Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Shipping Delivery NoteInitiates the shipping processControl document for shipping processes maintains status of each processing stepRe-confirms: availability, credit, foreign trade, delivery schedulingFacilitates transportation planning

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Shipping Picking & PackingPicking: Physical activity of moving goods from the warehouse for further processing (packing, loading)Packing: Determines packing materials and packing detailsAdvanced processing includes, e.g. batch mgmt., serial number control

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Shipping Post Goods IssueCompletes the shipping processTypically performed when customer takes ownershipUpdates inventoryUpdates G/L accountsCost of goods soldInventory

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.BillingGenerate customer invoiceUpdates FICustomer accountG/L accounts: revenue, discount, etc.Applies relevant pricingUpdates customer credit Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales & Distribution- Organizational Structures - Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.SD Enterprise Structure

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Enterprise StructureCompany Code Represents a legal/tax entity - Based on where you legally represent the financial events of transacting business. Used for reporting externally (ie. IRS) or Legal Sets of Books A Company Code consists of business transactions required for an individual account closing, such as the balance sheets and the profit and loss statement. Examples of company codes are: Schneider India Inc Schneider NL Inc.Sales OrganizationOne Sales Organization per Company Code. A sales order cannot cross sales organization.Sales Orders belong to One Sales Organization (Header Level Assignment) and Plants are assigned to a Sales OrganizationMaster Data Maintenance for Customers, Pricing at Sales Organization LevelDistribution Channel Distribution channels define how different materials reach the customer. Example : Residential, Building, Industrial etc. Distribution channels are allocated to one or more sales organizations. Within a distribution channel, you can define master data for customers or materials as well as conditions and pricing.Division Divisions can be used to represent product lines or product groups. A sales order may contain items from different divisions. Example : Switch, Transformer and MIC etc A product always belongs to just one division. You specify the division for the general data in the material master record. Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Enterprise Structure A Plant usually is a Manufacturing Facility, Warehouse, or a Location that Stocks , Manages, and Valuates Inventory Can be a Physical Location(cost centers may or may not be associated to a plant i.e. administrative Vs. manufacturing cost centers) Plants are assigned to sales organizations and distribution channels. A Plant is Assigned to A Company A single sales organization can sell from several plants. PlantA Location within a Plant where Inventory is Stored. It is a way to segregate inventories within a plant.Storage Location Shipping is an integrated module of sales and distribution processing. The shipping point is the highest-level organizational unit of shipping that controls your shipping activities. Each outbound delivery is processed by one shipping point. There will be one shipping point per plant.Shipping Point Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales & Distribution- Master Data - Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. SD Master Data - Core ElementsMasterDataCustomerMaterialPricing Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales & Distribution- Customer Master - Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Customer Master

The customer master includes all data necessary for processing orders, deliveries, invoices, andcustomer payments.The customer master groups data into categories: general data, sales area data, and company code data.The general data is relevant for sales and distribution and for accounting. It is stored centrally, in order to avoid data redundancy. It is valid for all organizational units within a client.The sales area data is relevant for sales and distribution. It is valid for the respective sales area(sales organization, distribution channel, division).The company code data is relevant for accounting. It is valid for the respective company code Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Customer Master Partner Types

Sold-To PartyThe Sold-to party is the party which places an order for the delivery of goods or the rendering of services. As a default when a Sold-to is created, it also performs the function of Bill-to, Payer and Ship-to.Ship-To PartyThe Ship-to party is where the goods will be delivered.

Bill-To PartyThe Bill-to party is simply the address to which the invoice is mailed.PayerThe Payer is the Company who pays the invoice for the delivery of goods or rendering of services.

In order to accommodate complex Customer structures, SAP separates these different business functions, into the following Customer Partner Functions: Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Material MasterThe material master contains information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material-specific data. This information is stored in individual material master records.The material master is used by all components in the SAP Logistics System. The integration of all material data in a single database object eliminates redundant data storage. In the SAP Logistics System, the data contained in the material master is required, for example, for the following functions: In Purchasing for ordering In Inventory Management for goods movement postings and physical inventory In Invoice Verification for posting invoices In Sales and Distribution for sales order processing In Production Planning and Control for material requirements planning, scheduling, and work scheduling

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Material Master

The material master is grouped into several views: Basic data, sales and distribution data,purchasing data, various further data for engineering/design, accounting, costing, warehousemanagement, and so on. Basic data is relevant for all areas. It is valid for all organizational units within a client. Sales: sales organization data is relevant for sales and distribution. It is valid for the respective sales organization and the distribution channel. The sales: plant data is also relevant for sales and distribution. It is valid for the respectivedelivering plant. There is additional data for several other areas. This is valid for various organizational units. Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Pricing MasterPricing is based on a matrix of predefined and custom elementsDelivered element groups (a.k.a. conditions)PricesDiscounts & SurchargesFreightTaxes

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Pricing Master Overview

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Shipping

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Shipping OverviewDelivery creation activitiesgenerates packing proposalconsiders partial deliveries updates route assignmentassigns picking location- updates sales order status, delivery qty Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.PackingIdentifies which packaging is to be used for specified productsIdentifies and updates accounts associated with returnable packagingTracks the packed product by containerInsures weight/volume restrictions are enforced

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Goods IssueEvent that indicates the change in ownership of the productsReduces inventoryAutomatically updates the G/L accountsEnds the shipping process and prevents changes to the shipping documents Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Billing Overview Automated invoicing based on sales orders and/or deliveriesFunctionality for processing credit/debit memos and rebatesIntegration with FI & COUpdates customers credit data Can create pro forma invoices

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Customer ReturnsReturnOrder

Goods ReceiptQuality Inspection

Credit Memo Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Customer ReturnsOrderDeliveryInvoiceReturnsDeliveryReturnCreditMemo123Return toInventory Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Customer ReturnsReturns documentBilling block can be proposedUse the Order reason field to identify the reason for the returnFull access to pricing and ability to re-priceReturn deliveryIssues a goods receipt to place material into inventoryCredit memoBilling block must be cleared from ReturnPosts to FICan be processed in batch (background)Can be processed collectively (grouped) Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Sales Document Types

Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.Thank You Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.