sales and distribution master data egn 5620 enterprise systems configuration spring, 2013

Sales and Distribution Sales and Distribution Master DataMaster Data

EGN 5620 Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration Spring, 2013Spring, 2013

Sales and Operations Planning (SOP) covers various activities including the specification of medium term and long term sales volumes and the approximate planning of the production activities that are required to meet these volumes.

SOP can be done at the level of finished products or using product groups. Any combinations of materials or even of product groups themselves can be grouped together into other product groups.

Sales & Operations Planning (SOP) Sales & Operations Planning (SOP) Overview Overview

Sales Planning - resultSales Planning - result

Sales planning results in creating the demand program as an input for production plan

Demand program feeds the production plan with the following data elements:◦Time Buckets ◦Sales◦Production◦Stock levels◦Days supply

January 2008January 2008

© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 33

Sales & DistributionSales & DistributionMaster DataMaster Data

SAP Implementation SAP Implementation

EGN 5620 Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration


© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 55

Business Process IntegrationBusiness Process Integration

FI

MM

SD

Rules

FI

MM

SD

Master D

ata

FI

MM

SD

FI SDMM




SD

SD



Sales OrganizationSales OrganizationA sales organization belongs to exactly one

company codeA sales transaction is linked to only one Sales

OrganizationSales Organization:

◦ Sells and distributes products◦ Negotiates terms of sales◦ Responsible for these business transactions

SAP allows assigning one or more plants to a sales organization.

It allows assigning sales offices and employees to the sales organization

January 2008January 2008© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. reserved. 88

Distribution Channel

It can be assigned to one or more Sales Organizations

It identifies how products and services reach the customer


DivisionDivisionIt can be assigned to one or more Sales

OrganizationsIt is an organization level to which customer

specific information and requirements are maintained (e.g. pricing, partial delivery)

It is often used to define product line distribution



Sales AreaSales Area

Sales Area comprised of: ◦Sales Organization◦Distribution Channel◦Division

Used to link together the organizational aspects of sales to customers

Also used for statistical analysis


Sales Area – (continued)Sales Area – (continued)

Retail DistChannel (RE)

Wholesale DistChannel (WH)

US SalesS_ _ _

MedicalDivision

ChemicalDivision

MedicalDivision

ChemicalDivision



Internal Sales OrganizationInternal Sales Organization

Typically defines a territory or marketLinked to one or more Sales AreasA reference sales organization structure:

◦Sales Offices Sales Groups

◦Sales Persons

Eastern Sales Western Sales

US SalesS_ _ _

Sales Office



Sales Group & Sales PersonsSales Group & Sales Persons

Sales Group◦Sub-division of a sales office, territory or market

Sales Person◦Defined in Human Resources (HR) — Personnel

Admin.◦Specifically defines an individual rather than a

position (sales rep.) in sales processing



Internal Sales OrganizationInternal Sales Organization

Eastern Sales(Office)

Western Sales(Office)

US SalesS_ _ _

NortheastSales Group

SoutheastSales Group

NorthwestSales Group

SouthwestSales Group

Salesperson1

Salesperson4

Salesperson3

Salesperson6

Salesperson5

Salesperson8

Salesperson7

Salesperson2



Shipping and Loading PointsShipping and Loading PointsA shipping point is the top level in the

organization for shippingIt usually exists physically in a plantA shipping point can be allocated to

several plantsIt can be divided into several loading

points (for more specialized handling)A delivery is always initiated from exactly

one shopping point. Thus all items of a delivery belong to one shipping point.


Shipping OrganizationShipping Organization

PlantP_ _ _

Freight DockFD_ _ _

Express DockED_ _ _

Rail DockRD_ _ _

LoadingPoint 3

LoadingPoint 2

LoadingPoint 1

LoadingPoint 4

Shipping Points




Master D

ata

SD

SD



Master Data Core Elements - Master Data Core Elements - CustomersCustomers

Material

Customer

Pricing

Master Data


Customer MasterCustomer Master

Customer Master Data is created in Sales Area:

•Sales Organization •Distribution Channel•Division

US SalesS _ _ _

DistributionChannel - RE

Division - 01

Sales Area



Customer Master - (continued)Customer Master - (continued)

General Data:

AddressSales Data:

Sales

Customer 43

General Data: demographic data

Company Code Data:Accounting information

Sales & Distribution Data:Sales information



Customer MasterCustomer Master

A master record must be created for every customer consisting of:◦ General data, ◦ Company code data (Financial Accounting-FI), and ◦ Sales & Distribution data (Sales and Distribution - SD)

Sales/distribution data Sales Shipping Billing Partner Usage

Company Code data Account Mgmt Payment transactions Correspondence

General data Address Control data Payment transactions



General Data – Address

Address Customer Name Search Term Street address City, Region Postal code Country

CommunicationLanguageTelephone, Fax, E-Mail

Customer Master Customer Master General Data – AddressGeneral Data – Address



Customer Master Customer Master General Data – Control DataGeneral Data – Control DataAccount Control

◦Vendor◦Authorization◦Trading partner◦Group key

Tax Information◦Tax codes◦Fiscal address◦Country code◦City code

Reference Data/Area



Customer Master Customer Master General Data – Payment TransactionsGeneral Data – Payment TransactionsBank Details

◦Country ◦Bank Key (country-specific, or the same as the

bank account number)◦Account holder◦Bank Account◦Control Key◦Collection



Customer Master Customer Master General Data – MarketingGeneral Data – MarketingClassification

◦Nielsen ID◦Customer classification◦Industry◦Standard Industry codes (SIC)

Operating Figures◦Annual sales◦Number of employees◦Fiscal year variant

Sales Prospecting (pre-sales)◦Legal status (e.g., LLC, C, S, or Gov.)◦Can’t buy state/gov. employee lunch, while

prospecting



Customer Master Customer Master General Data – Unloading PointGeneral Data – Unloading Point

Unloading Points◦Unloading point◦Default◦Calendar key◦Default Unloading Point ◦Goods receiving hours



Customer Master Customer Master General Data – Foreign TradeGeneral Data – Foreign TradeExport Data

◦Country key◦TDO (Table of Denial Orders) Date

SAP keeps up to date and sends updates all the time. ◦SDN (Specially Designated Nationals) Date

The last check date for customer on SDN list◦Boycott Date

Usage◦Mainly civilian usage◦Mainly military usage

Classification◦Biochemical warfare◦Nuclear nonproliferation◦National security



Customer Master Customer Master General Data – Contact PersonsGeneral Data – Contact PersonsContact Person

◦Name◦First name◦Department◦Function



Customer Master Customer Master Company Code – Acct InformationCompany Code – Acct InformationAccounting Information

◦Reconciliation Account◦Sort key

Indicating the standard sort sequence for display of the line items◦The account number at the dead office

Interest Calculation◦Interest indicator

for automatic interest calculation◦Interest cycle ◦Interest calculation frequency in months◦Last interest run

Reference Data◦Previous account number◦Buying group



Customer MasterCustomer MasterCompany Code – Payment TransactionsCompany Code – Payment Transactions

Payment Data◦Terms of Payment

(including optional cash discount)◦Tolerance group

Automatic Payment Transactions◦Payment methods◦Payment block◦Alternative payer◦Grouping key◦Lockbox ID

(to which customer makes payments to)



Customer MasterCustomer MasterCompany Code – CorrespondenceCompany Code – Correspondence

Dunning Data◦Dunning procedure◦Dunning block◦Dunning recipient

Correspondence◦Accounting clerk◦Acct at customer◦Customer user

Payment Notices To◦Customer – Sales◦Accounting – Legal



Customer Master Customer Master Company Code – Insurance Company Code – Insurance

Export Credit Insurance◦Policy Number◦Institution Number◦Amount Insure◦Valid Until◦Lead Months◦Deductible



Customer MasterCustomer MasterSales and Distribution – SalesSales and Distribution – Sales

Sales Order◦Sales District◦ Sales Office◦ Sales Group◦ Order Probability (based on statistics)◦ Item Proposal

Pricing / Statistics◦Price Group◦Customer Pricing Procedure◦Price List Type◦Customer Statistical Group



Customer MasterCustomer MasterSales and Distribution – ShippingSales and Distribution – Shipping

Shipping◦Delivery Priority◦Shipping Conditions◦Delivering Plant◦Order Combination (allowing to combine

orders)Partial Delivery

◦Complete Delivery Required By Law◦Partial Delivery per Item◦Max number of partial deliveries◦Under/Over delivery Tolerances

General Transportation Data◦Transportation Zone



Customer MasterCustomer MasterSales and Distribution – BillingSales and Distribution – Billing

Billing Section◦Subs. Invoice Processing◦Rebate◦Price Determination◦Invoicing Dates

Delivery and Payment Terms◦Incoterms◦Payment Terms

Accounting◦Account Assignment Group

Taxes◦Tax Classification



Customer MasterCustomer MasterSales and Distribution – Partner FunctionsSales and Distribution – Partner Functions

Partner Functions◦Partner Function (PF) ◦Partner number (ID) ◦Partner Description

Partial list of Partner Functions Types◦SP – Sold-to-party◦BP – Bill-to-party◦PY – Payer◦SH – Ship-to-party



Business PartnersBusiness Partners

Defines all of the parties involved in a business transaction

Differentiates between their roles◦Customer◦Carrier◦Employees◦Etc.




SAP automatically assigns a business partner to the customer master and to any transaction

There are four default business partner parties: ◦Payer (a legal entity)◦Sold-to◦Ship-to◦Bill-to

They may be the same or different.More business partner parties can be

added to carry out additional business transactions



Customer Account GroupCustomer Account Group

Customer masters are assigned to a customer account group

Through field status maintenance, account groups can be setup for one-time customers, regional customers, internal …

The customer account group controls both type and number range assignment for customers



Field StatusField Status

Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only

Field status controls are also relevant to a specific activity — create, change, or display


Business PartnersBusiness PartnersSold-toSold-to PartyPartyCustomer who orders can

default for all partner functions — sold-to, ship-to, payer, bill-to

Primary type of business partner

Independent and cannot be linked to other sold-to partners

Sold-to

Ship-to

Bill-to

Payer


Business Partners Business Partners Ship-to Party Ship-to Party

Receive deliveryCan be linked to more than

one sold-to address

Sold-to

Ship-to

Bill-to

Payer


Business Partners Business Partners Bill-toBill-to PartyParty

Partner who is delivered the invoice

Can be linked to more than one sold-to address

Sold-to

Ship-to

Bill-to

Payer


Business PartnersBusiness PartnersPayerPayer

Partner who pays the billCan be linked to more than

one sold-to address

Sold-to

Ship-to

Bill-to

Payer



Single & Multiple Ship-to PartiesSingle & Multiple Ship-to Parties

Single ship-to

Multiple ship-to’sSingle payer

Payer: 10Bill-to: 10Ship-to: 10

Sold-to: 10

Payer: 10Bill-to: 10Ship-to: 10

Sold-to: 10

Ship-to: 11



Sold-to

Bill-to

Payer

Ship-to

Ship-to

Ship-to

Ship-to

Ship-to

Ship-to

Sold-to



Master Data Core Elements - Master Data Core Elements - PricingPricing

Material

Customer

Pricing

Master Data



PricingPricing

A very robust module in SAPHighly touted “World-class” functionalityVery easily tailored to meet business

needsGross to net pricing for material



Standard Pricing ProcessStandard Pricing ProcessStandard Pricing

◦Calculates the gross price◦Then applies

–Discounts–Surcharges –Applicable Taxes

◦Calculates the final price

Final price = gross price - discounts + surcharges + taxes



Cost-Plus Pricing ProcessCost-Plus Pricing Process

Cost-plus pricing◦Captures the base cost◦Then applies

–Markup–Discounts–Surcharges–Applicable Taxes

◦Calculates the final price

Final price = cost + markup - discounts + surcharges + taxes



Pricing ComponentsPricing Components

Pricing uses tables to match the condition of order to the applicable pricing routine

These routines can ◦Add/Subtract amounts, percentages◦Give dollar, weight, quantity breaks/additions◦Accrue



Pricing ProcedurePricing Procedure

Pricing uses one of possibly many procedures based upon ◦Item◦Customer◦Order type◦Sales Area

The procedure will then apply◦Prices (Gross)◦Discounts & Surcharges◦Freight◦Taxes



Pricing Procedure – (continued)Pricing Procedure – (continued)

Pricing conditions for each item on the order

Pricing condition uses◦Pricing procedure◦Access sequence◦Conditions type

Determines adjustments and price



Select a line Item in Sales Order

Determine aPricing Procedure

Pricing ProcedureContains List ofCondition Types

Condition TypesPoint toAccess Sequence

Access SequenceProvides the SearchOrder for Pricing

Sales AreaS000-RE-01

Doc. Pric. Proc.OR=A

Cus. Pric. Proc. 43 = 1

PPEN000

Condition Type PR00 = Price

Access Sequence PR0210 – Customer/material20 – Price list cat./currency/material

30 – Material

30 – Material Price = $9.50

Pricing Procedure = RVAJUS

Pricing ProcessPricing Process



Sales Org.

Dist. Chan.

DivDoc. PP

Cust. PP

Price Prod.

0001 01 01 A 1 RVAA010001 01 01 A 2 RVAB010001 01 01 B 1 RVWIA10001 01 01 C 1 RVCA01S000 RE 01 A 1 RVAJUSS000 WH 01 A 1 RVAJUS

Price Prod. Ctyp Description

Acces seq.

RVAJUS PR00 Price PR02PB00 Price (Gross)KA00 Sales deal K305K007 Customer Discount K307K004 Material K304K005 Customer/Material K305

Access Seq.

Access No. Description

PR02 10 Customer/material with release status20 Price list cat./cur/mat with rel status30 Material with release status

K305 10 Customer/material with release statusK307 10 Customer with Release StatusK304 10 Material with release status

Line Item

Pricing Proced. Det.

CTyp points to Access Seq.

Access Seq. points to Cond. Tbls.

Cond. Tbls. contain the Item Pricing

PPEN000Sales AreaDoc. PPCust. PP

PR00Points toPR02

PR02Points to Cond. Tables

Cust. / Mat.Price List / Cur / Mat. Material

N / A N / A$ 9.50

Pricing Process



Price Agreements (for purpose Price Agreements (for purpose of sales deals)of sales deals)

Standard price agreements based on:◦ Product◦ Customer◦ Customer &

material◦ Customer group &

material group

Detailed price agreements◦Pricing scales◦Rebates◦Customer

expected price



Credit Limits and CheckingCredit Limits and Checking

Define automatic credit limit checks to your company’s requirements

You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on)

A credit representative is automatically alerted to a customer’s critical credit situation as soon as order processing starts

Employees can be automatically notified of critical credit situations via internal mail



Credit Limits and Checking – Credit Limits and Checking – (continued)(continued)Credit representatives are able to check a

customer’s credit situation to decide whether the customer should be granted credit

Works in distributed systems◦Central financial accounting◦Non-central sales and distribution on several

sales and distribution computers



Credit CheckCredit CheckYou can use this function at any time

within service processing to call up information about the current credit status of a customer

Credit limit can be checked manually or automatically

The system generally checks the planned costs without tax

If a customer has exceeded their credit limit, the system issues a warning



Credit Check – (continued)Credit Check – (continued)

The checks can be carried out at various times during the sales order cycle, from order receipt to delivery

You can define a credit check for any valid combination of the following data:•Risk category•Document credit group•Credit control area



Master Data Core Elements - Master Data Core Elements - MaterialMaterial

Material

Customer

Pricing

Master Data


Material Master – Sales Views Material Master – Sales Views (review)(review)

Sales: sales org. 1Sales: sales org 2Sales: general/plantForeign trade exportSales: text

Sales Org. 1

View Sales Org. 2View

Barrel Pen



Business RulesBusiness Rules

Ru

les

SD



Assignment of Sales Area to Assignment of Sales Area to Pricing ProcedurePricing ProcedureAssignment of Pricing Procedure uses the

combination of:◦Sales Area◦Document Pricing Procedure◦Customer Pricing Procedure

Each combination of these has a pricing procedure assigned



Availability CheckAvailability Check

For determining the material availability date, SAP can include specific stocks below, if selected:◦Safety stock◦Stock in transfer◦Quality inspection stock◦Blocked stock◦Restricted use stock◦All movements of stock



Credit Checking Credit Checking Static Credit Limit Check

◦Open Orders◦Open Deliveries◦Open Billing documents◦Open Items (accounts receivable)

Dynamic credit limit with credit horizon check (future dates)

Credit check to maximum document value (per order)



Shipping FunctionsShipping Functions

Shipping Point Determination◦The shipping point is selected for each line

item based on the shipping point determination process

◦Shipping point selection is based on:– Shipping condition– Loading group– Delivering plant



Shipping FunctionsShipping Functions

Route Definition◦Define delivery method and the transit time

‘Dummy’ routes can be used to easily define transit time

Route Determination◦ Proposed route is chosen using

–Shipping point–Destination country–Transportation zone –Shipping condition

PEN, Inc. PEN, Inc.

EGN 5620 Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration

Sales & Distribution Master Data

Enterprise Structure in Pen Inc.Enterprise Structure in Pen Inc.

Plant Plant (P _ _ _)(P _ _ _)

Client (600)Client (600)

Chart of Chart of Accounts (C _ _ _)Accounts (C _ _ _)

CompanyCompanyCode (C _ _ _)Code (C _ _ _)

Fiscal YearFiscal YearVariant (2013)Variant (2013)

Credit ControlCredit ControlArea (C _ _ _)Area (C _ _ _)

Shipping Shipping Point (S _ _ _)Point (S _ _ _)

SalesSalesOrg. S _ _ _Org. S _ _ _

Distribution Distribution Channel (RE, WH)Channel (RE, WH)

Division (01)Division (01)

Sales Area (S _ _ _)Sales Area (S _ _ _)

Controlling Controlling Area (C _ _ _)Area (C _ _ _)

SL10SL10 SL20SL20

Customer Master Address Data:Customer Master Address Data:

Customer Master Sales Areas Data:Customer Master Sales Areas Data:

Customer Master Price Data:Customer Master Price Data:

Customer Master Credit Data:Customer Master Credit Data:

Assign Sales Areas to Price Assign Sales Areas to Price Procedures:Procedures:To link sales area to a pricing procedure. The RVAJUS pricing procedure is the standard USA pricing procedure with jurisdiction code. In the pricing procedure, prices are assigned to individual line items in sales order as well as discounts, surcharges, etc.

SOrg DChl Dv DoPr CuPP PriPr

S_ _ _ RE 01 A 1 RVAAPC

S_ _ _ WH 01 A 1 RVAAPC

Exercises:Exercises: (Due date 2/27/2013)(Due date 2/27/2013)

128. Create Sales Revenue Account 129. Create Sales Revenue Deductions Account131. Create Customer132. Create Ship-to-Party133. Assign Ship-to Party to Customer134. Create Material Prices135. Create Customer Specific Material Price136. Create Customer Discount137. Establish Credit Limit for Customers138. Assign Sales Areas to Pricing Procedure141. Create Shipping Point Determination142. Create Account Assignment Key143. Check Stock Status211A: Maintain Cost Center Standard Hierarchy

sales and distribution master data egn 5620 enterprise systems configuration spring, 2013

Documents

sales organization slide

sales area sales area

sales organizations

sales transaction

assigning sales offices

terms of sales responsible

sap ag university alliances

long term sales volumes