MASTER DATA & BASIC FUNCTIONSIN

SALES AND DISTRIUTION

Master Data in Sales & DistributionMaster Data in Sales & Distribution

PurposePurpose

Every company is structured in a certain way. In order to Every company is structured in a certain way. In order to work with the SAP System your work with the SAP System your company structurecompany structure has to has to

be represented in the system. be represented in the system.

In Sales and Distributions the products are sold to business In Sales and Distributions the products are sold to business partners or services performed for them. partners or services performed for them.

In SAP R/3 system, business transactions are stored in the In SAP R/3 system, business transactions are stored in the

form of documents. These SD documents are structured so form of documents. These SD documents are structured so

that the documents are stored in a systematic way.that the documents are stored in a systematic way.

Organizational Structure in SDOrganizational Structure in SD

Organizational Structure forms a framework in which all Organizational Structure forms a framework in which all

transactions are processed.transactions are processed.

In SD organizational structure can be linked to Financial In SD organizational structure can be linked to Financial

Accounting and Material Management.Accounting and Material Management.

Sales AreaSales Area

SD is organized according to Sales Organization, DistributionSD is organized according to Sales Organization, Distribution

Channel & Division. The below three forms the sales area.Channel & Division. The below three forms the sales area.

Sales OrganizationSales Organization

This is responsible for the sales and distribution of goods This is responsible for the sales and distribution of goods

and service.and service.

Each sales organization is assigned exactly one company Each sales organization is assigned exactly one company

code for which all the accountings can be entered.code for which all the accountings can be entered.

Distribution ChannelDistribution Channel

This is the channel through which the salable materials or This is the channel through which the salable materials or

service reaches customer. service reaches customer.

One distribution channel can be assigned to one or more One distribution channel can be assigned to one or more

sales organization.sales organization.

DivisionDivision

In the SAP R/3 System you can define a divisionIn the SAP R/3 System you can define a division--specific specific

sales organization. sales organization.

Internal Organization in Business DevelopmentInternal Organization in Business Development

and Salesand Sales

Organization in sales is represented by the elements of Organization in sales is represented by the elements of Sales Sales

Office, Sales Group and Sales PersonOffice, Sales Group and Sales Person. .

Sales OfficeSales Office

Sales office creates a contact between firm and regional Sales office creates a contact between firm and regional

market.market.

Sales GroupSales Group

Staff of sales office can be subdivided into sales group. Staff of sales office can be subdivided into sales group.

Each sales group is assigned to individual division.Each sales group is assigned to individual division.

Sales PersonSales Person

You can maintain the personnel master records for sales You can maintain the personnel master records for sales

representative in your company. In sales organization you representative in your company. In sales organization you

can assign sales person to sales group and sales office.can assign sales person to sales group and sales office.

Organization in Shipping PointOrganization in Shipping Point

It is independent organizational entityIt is independent organizational entitys responsibility for s responsibility for

delivery of products to the customer delivery of products to the customer

A shipping point is a fixed location that carries out shipping A shipping point is a fixed location that carries out shipping

activities. Each delivery is processed by only one shipping activities. Each delivery is processed by only one shipping

point.point.

Business PartnersBusiness Partners

Business Partners are the persons having contact with theBusiness Partners are the persons having contact with the

company. They are classified into,company. They are classified into,

1. Customers.1. Customers.

2. Vendors and2. Vendors and

3. Personnel.3. Personnel.

TT--Code : Code : VD01VD01

Tables : Tables : KNA1KNA1

Business Partner Master Data StructureBusiness Partner Master Data Structure

Partner FunctionPartner Function

Use partner functions to define the rights and responsibilities Use partner functions to define the rights and responsibilities ofof

each business partner in a business transaction. each business partner in a business transaction.

Product and ServicesProduct and Services

Products and services are combined in the SAP R/3 SystemProducts and services are combined in the SAP R/3 System

under the term under the term materialmaterial. .

All information necessary for the management of a material All information necessary for the management of a material

and its stocks, as well as its use, is maintained in the soand its stocks, as well as its use, is maintained in the so--

called material master record. called material master record.

This includes, for example, data on purchasing, sales and This includes, for example, data on purchasing, sales and

storage.storage.

Product TypesProduct Types

Trading GoodsTrading Goods

TT--Code : MMH1Code : MMH1

NonNon--stock Materialstock Material

TT--Code : MMN1Code : MMN1

ServicesServices

TT--Code : MMS1Code : MMS1

Packaging MaterialPackaging Material

TT--Code : MMV1Code : MMV1

Other MaterialsOther Materials

TT--Code : MM01Code : MM01

Item ProposalItem Proposal

Grouping of material combinations and quantities frequently Grouping of material combinations and quantities frequently

ordered.ordered.

When entering a sales order, the user can refer to and copy When entering a sales order, the user can refer to and copy

information from a product proposal. Or the system information from a product proposal. Or the system

automatically proposes items previously established in the automatically proposes items previously established in the

product proposal for a particular customer.product proposal for a particular customer.

TT--Code : Code : VA51VA51

Basic FunctionsBasic Functions

The important basic functions are The important basic functions are

Pricing & ConditionPricing & Condition

Availability CheckAvailability Check

Credit ManagementCredit Management

Material DeterminationMaterial Determination

Text ProcessingText Processing

Tax DeterminationTax Determination

Account DeterminationAccount Determination

1. 1. Pricing & ConditionPricing & Condition

Purpose:Purpose: The term Pricing is used broadly to describe the The term Pricing is used broadly to describe the

calculation of Prices (external) and Costs (internal). The calculation of Prices (external) and Costs (internal). The

term Condition represents the set of circumstances for term Condition represents the set of circumstances for

calculating the prices.calculating the prices.

For Example: For Example: When the customer orders a product, for When the customer orders a product, for

certain quantity, at certain date. The customer gets the certain quantity, at certain date. The customer gets the

price of the product based on the various factors. These price of the product based on the various factors. These

records are stored in the system as master records. This records are stored in the system as master records. This

master data is stored in the system as condition records. master data is stored in the system as condition records.

2.2. Availability CheckAvailability Check

When you enter sales order, you can only confirm the delivery ofWhen you enter sales order, you can only confirm the delivery of

the goods only after checking the availability of the goods forthe goods only after checking the availability of the goods for

the necessary processing before the delivery is carried out.the necessary processing before the delivery is carried out.

Shipping department must ensure the necessary time is Shipping department must ensure the necessary time is

available for freighting and the company must ensure that available for freighting and the company must ensure that

the products can be packaged and loaded in time.the products can be packaged and loaded in time.

Procurement department must ensure that there is Procurement department must ensure that there is

necessary raw materials are available in the purchase necessary raw materials are available in the purchase

dept., for production to deliver the ordered materials in dept., for production to deliver the ordered materials in

time.time.

3. 3. Credit ManagementCredit Management

The Credit Management enables you to minimize the credit The Credit Management enables you to minimize the credit

risk by specifying the specific credit limit for your risk by specifying the specific credit limit for your

customers.customers.

Free GoodsFree Goods

In many sector of industry it is common to provide products forIn many sector of industry it is common to provide products for

free of charge or not to charge for some of the products whenfree of charge or not to charge for some of the products when

the customer purchases certain goods.the customer purchases certain goods.

Two Types Two Types

Inclusive Free GoodsInclusive Free Goods

Exclusive Free GoodsExclusive Free Goods

Inclusive Free Goods: Inclusive Free Goods: When the customer ordered some goods,When the customer ordered some goods,

he pays only for the part of the goods required. The remaininghe pays only for the part of the goods required. The remaining

goods are free.goods are free.

Exclusive Free Goods: Exclusive Free Goods: When the customer ordered someWhen the customer ordered some

goods, he pays for the ordered goods and he gets some of thegoods, he pays for the ordered goods and he gets some of the

additional goods.additional goods.

Free goods agreements can be maintained in master data.Free goods agreements can be maintained in master data.

FeaturesFeatures

Free Goods can be maintained as inclusive or exclusiveFree Goods can be maintained as inclusive or exclusive

You can specify the validity period for the free goods You can specify the validity period for the free goods

agreement.agreement.

You can set minimum quantity for which free goods are to You can set minimum quantity for which free goods are to

be granted.be granted.

Cross SellingCross Selling

Mail order catalog retailers frequently use cross selling toMail order catalog retailers frequently use cross selling to

increase sales. When a customer orders an article over theincrease sales. When a customer orders an article over the

phone, the order taker can suggest additional articles that thephone, the order taker can suggest additional articles that the

customer might buy. customer might buy.

For example,For example, if the customer orders a VCR, you might suggestif the customer orders a VCR, you might suggest

purchasing some blank tapes; for a cellular phone, a leatherpurchasing some blank tapes; for a cellular phone, a leather

carrying case.carrying case.

TT--Code : Code : VB41VB41-- Create, VB42Create, VB42--Change, VB43Change, VB43--DisplayDisplay

Material DeterminationMaterial Determination

Material Determination enables automatic substitution ofMaterial Determination enables automatic substitution of

materials in sales document in sales order processing. Formaterials in sales document in sales order processing. For

example, during the course of a sales promotion, the systemexample, during the course of a sales promotion, the system

can, during sales order entry, automatically substitute acan, during sales order entry, automatically substitute a

material that has promotional packaging. A consumer productmaterial that has promotional packaging. A consumer product

may have a special wrapper for, for example, the Christmasmay have a special wrapper for, for example, the Christmas

season. Using this Material Determination, the system onlyseason. Using this Material Determination, the system only

makes this substitution during a specified period of time.makes this substitution during a specified period of time.

TT--Code : Code : VB11, VB12, VB13VB11, VB12, VB13

Material Listings and ExclusionMaterial Listings and Exclusion

Material listing and exclusion lets you controls which materialsMaterial listing and exclusion lets you controls which materials

specific customer may or may not buy. For example, if youspecific customer may or may not buy. For example, if you

create a material listing for a specific customer, the customercreate a material listing for a specific customer, the customer

can only order products from that list. You can also create acan only order products from that list. You can also create a

master record for material exclusion for a particular customer.master record for material exclusion for a particular customer.

Then the customer can not order excluded materials from you. Then the customer can not order excluded materials from you.

Only two partner functions applies for Material Listings: SoldOnly two partner functions applies for Material Listings: Sold--toto--

party and payer.party and payer.

if the soldif the sold--toto--party has material listing, the system checks party has material listing, the system checks

only from that list,only from that list,

if the soldif the sold--toto--party has not having material list but the party has not having material list but the

payer has it, then the system checks from that listpayer has it, then the system checks from that list

if the either of two not having the list, then customer may if the either of two not having the list, then customer may

order any product. order any product.

TT--Code: VB01, VB02, VB03Code: VB01, VB02, VB03