Think Tree Technologies , Inc

SAP Sales & Distribution

By Dilip K Sadh
Dilip K Sadh
2
Dilip K Sadh
Relevant Experience Selected Relevant SAP Experience

















SAP Platinum level Expertise
Industry Experience:

Apparel & Footwear
Consumer Packaged
Chemicals
Medical Devices
Telecommunication
Electronics products
Industrial Products
Whole Sales

Functional/Technical Knowledge:

SAP AFS

Sales & Distribution

Material Management

Logistics Execution

SAP CRM

SAP GTS

SAP CS



Dilip is President of Kabeer Consulting Inc , Think Tree Technologies, Inc and
Kabeer InfoTech Systems India Pvt Ltd.
Dilip Sadh was an Associate Partner at IBM in the USA. Also worked as Sr
Director with Accenture and Capegmini in USA.
He has total of 15 years of experience in SAP implementation.
Dilip is a visiting Professor at Indiana University of Pennsylvania (IUP) for MBA
course.
He has been visiting faculty to various universities across the globe like
Massachusetts Institute of Technologies (MIT), North Eastern, IUP,IIT Delhi,
IMT Ghaziabad , FORE school of Management etc.
He has taught over 3000 students in SAP SD/CRM , MM/WM, CS modules
etc.
He is written several papers on Supply chain Management topics.
Dilip holds a Bachelors of degree in Mechanical Engineering.


Background
Selected clients served as SAP implementer
Reebok / Adidas : USA
Bose Corp : USA
Kelloggs : USA / Maxico / Brazil
Lucent Technologies: USA
Colgate Palmolive : Russia , Poland
Clorox : USA
Stanley Works : USA & Canada
Degussa Chemicals : USA & Germany
Southern wine Sprits of America : USA
Bhartia Cutler Hammer : India
Samsung India : India
CDAC India

Selected Clients served as SAP Knowledge provider (Trainer / Thought
leadership)
Indian Oil corporation Ltd : India
Engineers India Ltd : India
National Thermal Power Corporation (NTPC) : India
Gas Authority of India Ltd (GAIL) : India
Dilip K Sadh Think Tree Technologies , Inc
3
Summary
Overview

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions
Dilip K Sadh Think Tree Technologies , Inc
4
Summary
Overview

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions
Dilip K Sadh Think Tree Technologies , Inc
5
Overview : the SAP - R/3 system
Sales &
Distribution
SD
MM
PP
QM
PM
HR
FI
CO
AA
PS
OC
IS
Materials
Mgmt.
Product
Planning
Quality
Mgmt.
Plant Mainte-
nance
Human
Resources
Financial
Accounting
Controlling
Assets
Accounting
Project
System
Office &
Communi-
cation
Industry
Solutions
R/3
Invest
Management
IM
SAP is a fully integrated system:

- Finance and Control
- Sales and Distribution,
- Materials Management,
- Production, etc...
Dilip K Sadh Think Tree Technologies , Inc
6
Summary
Overview

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions
Dilip K Sadh Think Tree Technologies , Inc
7
SD Functionality
Master data
Delivery
Picking Transport
Delivery
Billing
Collective billing
Single billing documents
Debit & credit notes
Functionality
Customer
Material
Cust/material
info records
Classification
Texts
Pricing
ORGANISATIONAL STRUCTURE
Request
Quotations
Pre-Sales
-Order -Contract
-Delivery schedule
Sales
S
a
l
e
s


i
n
f
o
r
m
a
t
i
o
n

s
y
s
t
e
m

The SAP SD module enables us to integrate and optimise all activities from
sales, through delivery and billing.
Dilip K Sadh Think Tree Technologies , Inc
8
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
9
SD organisational structure : Sales organisation
A sales organisation:
- can have its own prices, customer- and material sales data while sharing the customers
and materials with other companies on the same SAP system
- is an important selection criterium for reporting
Sales Org.
Company 1
Dilip K Sadh Think Tree Technologies , Inc
10
Sales
organisation
Distribution
chanel
SD organisational structure : Distribution channels
Distribution channels allow us to split customers and
materials, for example :
- Retail customers
- Trade houses
- Direct sales
- E-Sales

Sales org.
Retail Trade Direct
Dilip K Sadh Think Tree Technologies , Inc
11
Sales
organisation

Distribution
channels

Divisions
SD organisational structure : Divisions
The division can be used if a further split of activities and product lines is
desired and it can be usefull to cover special requirements on:
- pricing,
- partial deliveries and
- payment terms
Sales org.
CAR Motorcycle
Trade Retail Direct
Chemical
Dilip K Sadh Think Tree Technologies , Inc
12
Sales office
Sales district
Sales group
New York Chicago
South North South North
Mike Tom Mike
Julie

SD organisational structure : The sales force
Dilip K Sadh Think Tree Technologies , Inc
13
Plant
Shipping point
Loading point
Philadelphia Boston
Truck
Dock 1 Dock 2
Rail
SD organisational structure : Shipping points
A shipping point is a place where you have one or more
loading points where goods are actually loaded.
Dilip K Sadh Think Tree Technologies , Inc
14
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Shipping point determination
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
15
SD Master data
Customer master:
- Sold-to, ship-to etc.

Material master:
- Finished goods
- Raw materials

The risk of data redundancy is clearly reduced by centralised master
data maintenance and sharing master data across the different SAP
modules.

From a sales point of view, we can distinguish between two kinds of
master data which are of major importance:
Dilip K Sadh Think Tree Technologies , Inc
16
General data
Address
Marketing
Control
Contacts
Administration
Correspondence
Payment
Insurance
Sales
Shipping
Billing
Business Partners
Sales area data Admin.data
SD Master data : Customer master
Customer master data can be maintained on
a generic or a sales area/company specific level. :
Dilip K Sadh Think Tree Technologies , Inc
17
SD Customer master: Partner functions
Partner
functions
Sold-to
Ship-to
Payer
Bill-to
.......
Employee
Carrier
Ship-to 2
In order to meet our customer requirements, we can define several
partner functions for one customer :
Dilip K Sadh Think Tree Technologies , Inc
18
SD Material master
General data
Material number
Description
Unit of measure
Weight
Volume
Etc.
.
.
.
Financial
data
Warehouse
data
Sales
data
This central piece of master data covers the requirements for many
functional areas: sales, production, purchasing, administration etc.
Purchase
data
Etc...
Dilip K Sadh Think Tree Technologies , Inc
19
Organisational structure
Master data
SD document flow
Pre sales
Sales: customer orders
Shipping point determination
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
20
Document flow: sales, delivery, billing.


Request
Quotation
Order
confirmation
Delivery note
Invoice
Free of
charge
Returns
Delivery
schedule
Contract
Debit
note
Credit
note
Sales documents
Billing documents
Delivery documents
( CMR )
Dilip K Sadh Think Tree Technologies , Inc
21
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Shipping point determination
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
22
Pre sales activities :
- register customer address
- the details for the quotation
- the quotation
Pre-sales
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Customer: 1825
Valid from : 01/06/03
to : 31/12/03
Item Material Quantity
10 Mat01 10
20 - 2
Description :
Mgr.desk oak
Item text: expected price
2980 euro/each
Text
item
With material nr
Without material nr
The quotation
Dilip K Sadh Think Tree Technologies , Inc
23
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
24
The customer order
The customer order usually contains:
- customer & material details ,
- price details per item
- delivery relevant information
- billing related information
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

customer : 1825
Item Material Quantity
10 Mat01 10
20 Mat02 20
30 Mat03 30
Customer
Material
Deliv.+ payment
details etc.
Price details
Cust/mat.nr etc.
Dilip K Sadh Think Tree Technologies , Inc
25
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
26
Price determination
Conditions
Price
- List price
-Customer
-Specific price
- . . . . .
Deductions&Surcharges
- Per customer
- Per material
- . . . . .
- Per material/customer
- Per customer group
SAP automatically determines the price, surcharges,
deductions and taxes if relevant for this customer/material.
Validity period :
01/07/04 - 01/10094
Condition type
Sales organisation
Distr. channel
Customer
Material
XXX1 Summer Promotion
MY01
F1
FRCL1
1234
MY Ice.com
Direct sales
DUBOIS & FILS
ORDINATEUR
Price scale from:

1000 EUR 1,0 %
2000 EUR 2,0 %
3000 EUR 3,0 %
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
27
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
28
Transport planning
Picking time
Loading time
times
Transport
Backward scheduling from delivery date
Requested
deliv.date
Transport
planning
Availabilty Loading date Date out of
stock
Delivery date
Based on the requested delivery date and the time consumption during the delivery
process, we can confirm an availabilty date to the customer.
Check
availability
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
29
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
30
Delivery
Packing
Custmr
order
Goods
receipt

Picking
Delivery documents
Goods issue
Updated stock figures
Delivery = all activities in the transport & shipping department.
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
31
Delivery fullfillment
Complete delivery
Partial delivery
Combined delivery
Delivery
Customer order
Customer order
Customer order
Customer order
Delivery
Delivery
Delivery
Delivery
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
32
The delivery due list
Date Shipp.
point
Custmr
order
15 Nov 001 120
16 Nov
001 122
17 Nov
001 123
18 Nov
001 124
15 Nov 002 121
Date Shipp.
point
Custmr
order
15 Nov 001 120
16 Nov
001 122
17 Nov
001 123
Selection
criteria
Shipping point : 001
Dates :
From 15 Nov-17 Nov
Delivery
Delivery
Delivery
Protokol
Overview and selection criteria
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
33
Goods issue
The consequences of a goods issue :

- The stock quantity is reduced
- The stock value is reduced
- The stock reservations are reduced
- The document flow is updated
- The document will be included in the billing due list
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
34
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
35
Billing :
-creating invoices for deliveries and services

-creating debit- and credit notes

- update the billing due list

- transfer billing data to finance
Billing
The release of billing documents to accounting can be automated.
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
36
Different kinds of billing
Billing per delivery
Billing split
Collective billing
Sales
order
Delivery
Delivery
Sales
order
Delivery
Invoice
Invoice
Invoice
Invoice
Sales
order
Sales
order
Sales
order
Delivery
Delivery
Delivery
Invoice
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
37
The consequences of billing
A billing document results in :

- An accounting document
- Update the billing status of the customer
- Update of the statistics (sales, Intrastat)
- Update profit center data etc.
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
38

And , a last step in the management
cycle of the customer orders.


- linking payments to billing documents
- verify and action differences if needed

Payment by the customer means :
Payment
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
39
Cde
Client
The document flow
Quotation : 170000
Sales order : 900
. Delivery : 80000459
..Picking request : 17951109
..Goods issue : 49001828
.. Invoice : 90000333
Accounting doc : 1000000276
- The documents represent the SAP transactions.
- The transactions are linked and form a documents chain
- The document chain froms the document flow
PRE-SALES

SALES

DELIVERY

BILLING

PAYMENT

Dilip K Sadh Think Tree Technologies , Inc
40
Organisational structure
Master data
SD documents
Pre sales
Sales: customer orders
Shipping point determination
Price determination
Delivery scheduling
Billing
SD FUNCTIONALITY :

The information system
Delivery
Dilip K Sadh Think Tree Technologies , Inc
41
The information system
Characteristics
Time
interval
32
32
5500

1252
Ratios
Customer
Orders
Order
book
Customer
invoices
Sales
orf.
Distr.
Chan
nel
Custo
mer
Please note that the LIS functionality is limited.
Further functionality is available via Controlling &
Profitability Analysis (Co-PA) and the datawarehouse (BW)
The Logistics Information System (LIS) is a permanent on line
management and analysis tool within SAP.
Dilip K Sadh Think Tree Technologies , Inc
42
Summary
Overview

Order to cash

SD (Sales and Distribution) functionality

Integration in SAP

Conclusions
Dilip K Sadh Think Tree Technologies , Inc
43
Customer
order
Delivery
Billing
Dispo
check
Create
Production
plan
Capacities
Order
planning
Production
order
Purch.
Req.
Process
Pur.req.
Pur.
order
Receipt
Invoice
Verific.
QM
Resource management
Finance & Control
Sales &
Distribution
Production
Purchase
Logistics management Sales, Production, Purchase, Warehousing
Capacity, Material, Production & equipment
Integration in the logistic chain
Here we come to one of the big advantages of SAP, complete integration.
Stock
update
Dilip K Sadh Think Tree Technologies , Inc
44
?
Thank you !