STOCK TRANSPORT ORDER

Dissertation submitted in partial fulfillment of the requirements for the award

of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Of

BANGALORE UNIVERSITY

By

VIJAYKANTH V

Reg. No: 15XQCMD164

Under the Guidance of

SHASHANK

MP BIRLA INSTITUTE OF MANAGEMENT

BANGALORE

2016-2017
 DECLARATION BY THE STUDENT

I hereby declare that STOCK TRANSPORT ORDER is the result of the project work carried out under the
guidance of SHASHANK in partial fulfillment of the requirement of Masters Degree in Business Administration by
Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not been submitted to any other
University or Institute for the award of any other degree or Diploma or Certificate.

Place:Banglore NAME: VIJAYKANTH V

REGISTER NO: 15XQCMD164

Date:
 CERTIFICATE BY CO-GUIDE

(This Certificate is valid only to attach in the project report that has to be submitted to Bangalore University as
part of their MBA program 2015-2017)

This is to certify that Mr.VIJAYKANTH V of M P BIRLA INSTITUTE OF

MANAGEMENT College has undergone an SAP ERP training in SAP SD and have

also done a project on the case titled STOCK TRANSPORT ORDER as part of

their internship between October 2016 and January 2017. His conduct and work is

Satisfactory.

Signature Seal
4
PROJECT REPORT ON:

SALES & DISTRIBUTION

TABLE OF CONTENTs

SL No. TITLE Page No.

I Introduction to SAP SD&ERP 6

II Foundation 6-7
III Organizational units in SD 7-8
IV Sales & distribution process flow 8-9
V SD overview 9
VI Sales & distribution transaction 9-10
VII Outline agreements 11
VIII Outputs 11
IX Pricing 11-12
X Table structure 12
XI Case of the sap-SD 12-26

XII Conclusion 27

XIII Bibliography 28

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INTRODUCTION TO SAP

SAP was started in 1972 by five former IBM employees with a vision of creating standard
application software for real-time business processing. SAP stands for Systems Applications and
Products in Data Processing. Since its inception SAP has issued several releases, such as SAP
R/1, SAP R/2, and SAP R/3. The R in these releases stands for Real-Time data processing. The
3 in the R/3 stands for three-tier client-server architecture. SAP AG is the fifth largest
independent software producer worldwide and the largest producer of standard enterprise-wide
business applications for the roughly $9 billion global client-server software market.

The company's principal business activities are the development and marketing of an integrated
line of prepackaged computer software for over 1,000 predefined business processes, from
financial accounting, human resources, and plant maintenance to quality assurance, materials
management, sales and distribution, and business workflow. Its two major products, the R/2 and
R/3 suite of business software applications, are used by over 4,000 companies in the oil and gas,
banking, insurance, utilities, telecommunications, pharmaceuticals, consumer products,
automotive, retail, health care, chemicals, and high tech and electronics industries.

SAP FOUNDATION:

By 1987 SAP had grown to 450 employees and boasted sales of DM150 million. And although
no less than 27 percent of this was plowed back into research, in 1988 SAP GmbH formally
converted itself to a publicly traded Aktiengesellschaft (AG) to raise even more capital for
research and development. SAP had established its first operations outside Germany in the mid-
1980s, but it was not until the creation of a Swiss-based subsidiary, SAP International, in the late
1980s that it began the expansion that would make it a truly international player in the global
client-server software market. In 1988, it established SAP America in Philadelphia, staffing it

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initially with transplanted German managers. SAP executives soon realized, however, that an
American team was more likely to be able to maneuver through the idiosyncrasies of the U.S.
software market and soon began hiring U.S. professionals. One not unimportant result was the
abandonment of traditional German business practices in favor of a more American approach:
lifting limits, for example, on how much salesmen could earn in commissions and submitting
budgets in which fully one-third of all annual resources were devoted to product marketing.
Fueled by the release of R/3 in 1992, SAP America began to grow into SAP AG's most profitable
subsidiary, expanding from two U.S. offices to twenty between 1992 and 1995 alone.

Percent. R/3 was suddenly hot, and virtually overnight SAP had translated its reputation as to
the global stage.

Organizational Units in SD

The following training tutorials guides you an overview of organizational structure of Sales and
distribution module. The important organization units are;

Company Code
Sales Organization
Distribution channel
Division
Sales Area
Sales office
Sales Group
Company Code: It is a legal entity of organization in which balance sheets and profits & loss
statements are prepared and used for external reporting.
Sales Organization It is an organizational unit that groups the organization as per the
requirements of sales and distribution.

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Distribution Channel It provides the detailed information how the goods and services reaches
the customer. Examples of distribution channels are traders, third party sales, export, etc.
Division It is product line and it is used to group the products or services. In division you can
make the customer specific information and requirements like payment terms, deliveries, pricing.
Sales Area It is a comprised of Sales Organization + Distribution channel + Division. It is
mandatory to mention sales area in every sales transaction
Sales Office It can be a territory or market area. The configuration of Sales office in SAP is
optional. It can be defined as the place where the sales activities are take happened at company
branches can be referred as sales.
Sales Group The definition of sales group organizational element in sap is optional. Group of
employees are assigned to sales group.
Shipping Point It is a location where the delivery activities are performed. The delivery
process can be done from only one shipping point.
Loading Point It is a location where the sub-division of shipping points are used for the
purpose special handling of goods.

Sales and Distribution Process Flow:

Sales and Distribution:
Sales and distribution module is a part of logistics and it handles all the process of order to
delivery, it is fully integrated with the other modules of the SAP System such as MM and PP.SD
contains many phases such as Inquiry, Quotation, Sales Order, Sales Returns, Credit
Management, pricing, tax determination, and Goods Delivery modules.

SD Flow:
Customer then as a vendor we need to check whether we can deliver the goods with customer
conditions or not.
Quotation: Once we finish the inquiry then as a vendor we need to send quotation to the
particular customer.
Sales Order: Once we receive the purchase order from customer then as a vendor we need to
raise the sales order, while raising sales order we should know the partner functions.
Sold-To-Party who as raised the purchase order.

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Ship-To-Party where we need to deliver the goods.

Bill-to-party to whom we have to give the bill.

Payer who is going to pay the money?

Goods Delivery: After raising the sales order as a vendor we need to deliver the goods.
Billing: While delivering the goods we need to send the billing document.

Sales and Distribution Overview:

The Module start from the business transaction of a customer order from initiation to the end of
the customer order fulfillment. All the different processes of the customer order life-cycle are
linked within Sales and Distribution and to relevant processes outside SD.

The sales process involves the following activities:

1. Inquiry

2. Quotation

3. Order

4. Delivery

5. Billing

6. Incoming Payment

Sales and Distribution Transaction:

List of Important and useful Transaction codes used in SAP sales and distribution.

Customer Tcodes

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 XD01 : Create Customer (Centrally)

XD02 : Change Customer (Centrally)

XD03 : Display Customer (Centrally)

XD04 : Customer Changes (Centrally)

Vendor Tcodes

XEIP : Number range maintenance: EXPIMP

XK01 : Create vendor (centrally)

XK02 : Change vendor (centrally)

XK03 : Display vendor (centrally)

XK04 : Vendor Changes (Centrally)

Sales Order Tcodes

VA00 : Initial Sales Menu

VA01 : Create Sales Order

VA02 : Change Sales Order

VA03 : Display Sales Order

VA05 : List of Sales Orders

Inquiry T Coeds

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 VA11 : Create Inquiry

VA12 : Change Inquiry

VA13 : Display Inquiry

VA14L Sales Documents Blocked for Delivery

VA15 : Inquiries List

Quotation Tcodes

VA21 : Create Quotation

VA22 : Change Quotation

VA23 : Display Quotation

Item Proposal Tcodes

VA51 : Create Item Proposal

VA52 : Change Item Proposal

VA53 : Display Item Proposal

Delivery (Outbound) transactions

VL00 : Shipping

VL01 : Create Delivery

SAP VL01N Create Outbound delivery. with Order Ref.

SAP- Outline Agreements:

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Vendor selection is an important process in procurement cycle. Vendors can be selected by
quotation process. Once vendors are short-listed by organization, it enters into agreement with a
certain vendor to supply certain items with certain conditions and typically when agreement is
reached a formal contract is signed with the vendor. So, outline agreement is a long term
purchasing agreement with vendor. The key points about outline agreement are as follows:

Outline agreement is a long term purchasing agreement with vendor containing terms
and conditions regarding the material that is supplied by vendor.

Outline agreement are valid up to certain period of time and cover a certain predefined
quantity or value.

Outline agreement is of following two types.

Contract

Scheduling Agreement

Outputs Determination in SAP:

Output determination is a term which is used to get the print, fax or e-mail outputs for different
documents in SAP. Output is carried out based on the conditions that you define in Customizing.
You can define conditions for each output type and processing medium.

Configuration is same as Pricing in SAP, where you have Condition tables, Output Types, Access
Sequence & Output determination procedures. This combination is commonly known as
"Condition Technique in SAP". Please to view more details on the condition technique in SAP

SAP SD Pricing :

Pricing in Sales and Distribution is used to define the calculation of prices for external vendors
or customers and cost. This condition is defined as a set of conditions when a price is
calculated.

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Consider a case when customer orders specific quantity of a product on a particular day. Various
factors like customer, product, order quantity and date tell the final price to that customer. This
information is stored in the system as master data in the form of condition records.

There are various pricing elements like prices surcharges, discounts, and taxes, which are
defined in SAP system as condition types. To manage pricing information for a pricing element
in a system, you have to create condition records.

SAP -Tables structure :

Since I have not found another place to put these tips (for consultants, developers, users)
it is in this section. There are many useful lists of SAP tables on the Internet, but, for one
reason or the other, I could not find one overview in the tips and tricks section, which
suits my own needs.

Table-Types

There are 4 Table-Types within the SAP System:

1. Tables which have technical control functions within the SAP system. They are
maintained either by SAP or by users with special authorization.

2. Other tables contain basic commercial data (bank data, currency ...)

3. Tables for the organization of a company (company codes, customer data ...).

4. And last but not least there are tables for application data, which contain business
transactions and master data and are processed using SAP programs.

PART-02

SAP SD CASE STUDY PROJECT

13
 ON

HERO CYCLES

TEAM NO 23

SAP consulting process

SAP SD (Sales and Distribution) is one of the significant modules of SAP ERP. It is used to
store the customer and product data of an organization. SAP SD helps to manage the shipping,
billing, selling and transportation of products and services of a company. The SAP Logistics
module manages customer relationship starting from raising a quotation to sales order and
billing of the product or service. This module is closely integrated with other modules like SAP
Material Management and PP.

SAP Sales and Distribution is one of the key components of SAP ERP system and is used to
manage shipping, billing, selling and transportation of products and services in an organization.

SAP provides many components to complete SAP Sales and Distribution organizational
structure like Sales Areas, Distribution Channels, Divisions, etc. The SAP SD organization
structure majorly consists of two steps

Creation of Organization elements in SAP system, and

Second is to link each element as per requirement.

SAP SD acts as an integral part of the overall functions in an organization. As the companies
with products has the main function of selling it to the customers SAP SD makes it easier for
them. With the help of SAP SD companies can keep track of the product from manufacturing till
delivery. It also helps the organization to make decisions using the data available. The main area
of concern with the available data is forecasting of sales.

PART-02

Business Problem Statement :

14
Let say your company HERO CYCLES has two plants one in Mysore which manufactures
Handles and other one in Bangalore which is an assembly unit for manufacturing the cycle. The
handles have to be shipped to Bangalore from Mysore for the final assembly of cycle. Now
execute a scenario in SAP for this process for transferring materials with in the plants under
same company.

Solution:
Organizational elements to be considered for transactions:

Organizational elements Code

Company code 1000
Supplying plant 1000
Receiving plants 1100
Sales organization 1000
Distribution channel 10
Division 00
Storage location 0001
Shipping point 1000

Master data to be considered for transactions:

Master data Number
Material master HEROHANDLE

Step 1
Creation of Stock Transfer Order
T.Code : ME21N
Select : Document Type, Supplying Plant, Material, Receiving Plant, Quantity, Storage
Location, Purchase Org, Purchasing Group, Company Code

15
Save

Step 2
Creation of Delivery Document
Copy the Purchase Order Number
T.Code : VL10B

16
Enter the Purchase Order Number

Execute

17
Select line item and click on background

18
Select Show/Hide Delivery

19
Delivery Document is created

Step 3
Stock over View
T.Code : MMBE
Verify Stock in Supplying Plant

20
Execute

21
Step 4
Creation of Post Goods Issue
T.Code : VL02N
Enter the Delivery Document Number generated

Enter

22
Select the post good issue

Step 5
Stock Overview
T.Code : MMBE
Verify the Stock in Supplying Plant -1000

23
Step 6
Goods Receipt against Delivery Document in Receiving Plant 1100
T.Code : MIGO

Enter

24
Check OK indicator

Select Check & Post

25
Step 7
Stock Overview
T.Code : MMBE
Verify the Stock in Receiving Plant -1100

26
27
 CONCLUSION

By following the steps as indicated above in the solution part we can do plant stock transfer. In
reality many industries follow plant to plant stock transfer as there plant is located in different
region them. Plant to plant stock transfer is a special tool in SAP SD module which helps to
integrated the process and reduces the constraints.

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 Bibliography

Websites
SAP discussion forum:
https://archive.sap.com/discussions/thread/462570
Gurjeet Singh online studies:
https://www.youtube.com/results?search_query=sap+sd

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