Add BBP Udpl SD Ver2.0

SAP ECC. 6.
0 Implementation
United Distributors Pakistan Limited
(UDPL)
Addendum of the
Business Blue Print Document
Sales & Distribution (SD)
April 02, 2018
Presented by:
Shoaib Ahmed
Copyright © 2018 IBL. All rights reserved.

Table of Contents
1. Legend .................................................................................................................................... 5
2. Glossary of Terms ................................................................................................................... 6
3. Introduction.............................................................................................................................. 8
4. Organizational Structure ......................................................................................................... 9
4.1. Organization Elements on SAP............................................................................................. 10
4.1.1. Sales Area ............................................................................................................................. 10
4.1.2. Configuration Requirement ................................................................................................... 10
4.1.2.1. Sales Organization ........................................................................................................ 10
4.1.2.2. Distribution Channel ...................................................................................................... 11
4.1.2.3. Division .......................................................................................................................... 11
4.1.2.4. Sales Area ..................................................................................................................... 13
4.1.2.5. Plant .............................................................................................................................. 14
4.1.2.6. Storage Locations ......................................................................................................... 14
4.1.2.7. Shipping Point ............................................................................................................... 14
4.1.2.8. Configuration Data – Organizational Structure ............................................................. 16
5. Master Data ........................................................................................................................... 17
5.1. Overview ............................................................................................................................... 17
5.2. Customer Master Data .......................................................................................................... 17
5.3. Customer Master Creation Process ...................................................................................... 27
5.3.1. Process Flow ......................................................................................................................... 27
5.3.2. Process Description .............................................................................................................. 27
5.3.3. Configuration Data ................................................................................................................ 31
5.4. Material Master Data ............................................................................................................. 32
5.4.1. Overview ............................................................................................................................... 32
5.4.2. Material Master Creation ....................................................................................................... 32
5.4.3. Material Group....................................................................................................................... 34
5.4.4. Transportation Group ............................................................................................................ 34
5.4.5. Loading Group....................................................................................................................... 34
5.5. Condition Master Data (Pricing) ............................................................................................ 35
5.5.1. Process Definition ................................................................................................................. 35
5.5.2. Process Overview - Pricing ................................................................................................... 36
5.5.3. Process Flow Description – Local ......................................................................................... 36
5.5.4. Configuration Data ................................................................................................................ 37
5.5.4.1. Condition Types ............................................................................................................ 38
5.5.4.2. Pricing Structure ............................................................................................................ 40
5.5.5. Seasonal Discount ................................................................................................................ 41
5.6. Free Goods ........................................................................................................................... 43
5.7. Customer Material Info Records ........................................................................................... 45
5.8. Sales BOM ............................................................................................................................ 47
6. Credit Management ............................................................................................................... 48
6.1. Overview ............................................................................................................................... 48
6.2. Process Flow Credit Master Data ......................................................................................... 50
6.3. Process Flow Credit Check Process ..................................................................................... 51
6.4. Configuration Data ................................................................................................................ 52
7. Pre Sales Order Processing.................................................................................................. 53
7.1. Overview ............................................................................................................................... 53
7.2. Quotation Creation ................................................................................................................ 53
7.2.1. Quotation Creation Process .................................................................................................. 54
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7.2.1.1. Process Explanation ..................................................................................................... 54
8. Contracts ............................................................................................................................... 57
8.1. Definition ............................................................................................................................... 57
Quantity Contract .............................................................................................................................. 57
Release Orders ................................................................................................................................. 57
8.2. Contract Creation without reference to Quotation................................................................. 57
8.2.1. Process Explanation ............................................................................................................. 58
8.3. Contract Creation with reference to Quotation ...................................................................... 59
9. Sales Order Processing ........................................................................................................ 61
9.1. Sales Order ........................................................................................................................... 61
9.2. Sales to Credit Customer with or without reference.............................................................. 64
9.3. Sales to BG Customer with or without reference .................................................................. 66
9.4. Sales to Advance Customer with or without reference ......................................................... 67
9.5. Scrap Sales ........................................................................................................................... 68
10. Claims Processing ................................................................................................................ 69
10.1. Overview ............................................................................................................................... 69
10.2. Process Description .............................................................................................................. 69
10.3. Debit / Credit Memo Generation ........................................................................................... 71
11. Claims Processing – Sales Returns ...................................................................................... 72
11.1. Overview ............................................................................................................................... 72
11.2. Process Description .............................................................................................................. 72
11.3. Claims Processing - Returns................................................................................................. 73
11.4. Reversal / Diversion .............................................................................................................. 74
11.4.1. Overview ............................................................................................................................... 74
11.6. Outputs / Printouts ................................................................................................................ 74
12. Shipping Process .................................................................................................................. 75
12.1. Delivery Order Creation ........................................................................................................ 75
12.2. Delivery Creation Process ..................................................................................................... 76
12.4. Output / Printouts .................................................................................................................. 78
13. Billing Invoice ........................................................................................................................ 79
13.1. Overview ............................................................................................................................... 79
13.2. Process Flow Billing Process ................................................................................................ 80
13.2.1. Process Explanation ............................................................................................................. 80
13.4. Output / Print out ................................................................................................................... 82
14. Cancellation........................................................................................................................... 83
14.1. Overview ............................................................................................................................... 83
15. Financial Document Management ........................................................................................ 84
15.1. Overview ............................................................................................................................... 84
15.2. Process Overview ................................................................................................................. 84
16. List of Standard Reports ....................................................................................................... 86
17. RICEF .................................................................................................................................... 88
17.1. Reports .................................................................................................................................. 88
17.2. Outputs .................................................................................................................................. 88
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REVISION HISTORY
Revision # Revision Date Summary of Changes Updated by
01 16-04-2018 Changes Highligted in Green Shoaib Ahmed
DISTRIBUTION
This document has been distributed to:
Name Title
Mr. Sohail Hasnain Head of Finance – UDPL

Mr. Syed Azam Manager MIS & Branch Operations – UDPL
Mr. Muhammad Imran Manager Accounts – UDPL
Mr. Zeeshan Mehboob General Manager IS – Finance & HCM Operations – IBL Group
SIGN-OFF
This document should be signed by:
Name/ Title Signature
Mr. Sohail Hasnain

(Head of Finance – UDPL)
Mr. Syed Azam
(Manager MIS & Branch Operations – UDPL)
Mr. Muhammad Imran
(Manager Accounts – UDPL)
Mr. Zeeshan Mehboob
(General Manager IS – Finance & HCM
Operations – IBL Group)
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1. Legend
The following describes the symbols used in the process map:
This is the normal step in

the process and is to be
This is a decision step
performed by the
nominated position
This indicates that there

is a form or report This symbol indicates
required to be completed the start and end of the
by the nominated position process
outside of SAP

<Process Name>
This symbol indicates
is another process map
the continuation of the
detailing this step. There
process map to another
would normally be a
place on the same page
hyperlink to this process
or different page
map
This is a decision step

This is the step in the
supported by
process that is to be
information in SAP
performed automatically
(normally not in
by SAP. (Blue Dotted
Hardcopy). (Blue dotted
Outline)
outline)

is an entry or change
This is a report or required to be made in
document generated SAP. There would
from SAP. (Blue dotted normally be a hyperlink
outline) to the transaction or
training module. (Blue
dotted outline)
This indicates an This indicates a data file

automatic electronic either generated from
notification that the next SAP or used to load into
step in the process can SAP. (Blue Dotted
be commenced. Outline)
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2. Glossary of Terms
Controlling CO
Cost of Goods Sold COGS
Customer Master CM
Delivery Note DN
Enterprise Resource Planning ERP
Financial Accounting FI
Accounts Receivable AR
Inco terms International Chamber of Commerce terms
Goods Receipt GR
Materials Management MM
Post Goods Issue PGI
Post Goods Receipt PGR
Sales and distribution SD
Ship to Party SH
Sold to Party SP
Payer PY
Bill to Party BP
Distribution Channel DC
Sales Order SO
Delivery Note DN
Production Planning PP
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Materials Management MM
Letter of Credit LC
Bank Guarantee BG
Reports, Interfaces, Customizations, RICEF

Enhancements, Forms
International Brands Limited IBL
United Distributors Pakistan Limited UDPL
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3. Introduction
Sales and Distribution, allows you to execute different business transactions based on sales, shipping,
invoicing documents and different business processes. Sales and Distribution includes following sub
components:
1. Master Data
2. Pre-Sales
3. Sales
4. Shipping
5. Billing
6. Credit Management
The SAP Implementation scope at United Distributors Pakistan Limited currently includes Sales &
Distribution, Financials, Controlling, Production Planning, Materials Management, Human Capital
Management and Plant Maintenance modules.
The sales and distribution system in SAP allows users to manage sales and distribution activities in an
effective and efficient manner. The business processes in SD includes scenarios for pre-sales, sales,
shipping, billing, and sales information system; these all are streamlined seamlessly to provide
analytical data on real time basis. In addition, sales and distribution is integrated with the financials,
controlling, production, inventory and procurement modules which improves overall turnaround time
across the whole supply chain.
SAP Sales and Distribution interacts with the functional modules on continual and perpetual basis.
Every transaction in sales and distribution has a direct or indirect impact on the modules running parallel
in the SAP system. It is therefore of paramount importance that there is a high level of integration among
the organizational silos so that the information flow from one silo to other is precise, accurate and timely;
in turn ensuring smooth passage of the selling commitment and enthusiasm of the sales department to
the end customers.
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4. Organizational Structure
In the SAP ERP, several structures can be used to represent the legal and organizational structure of
the company. Organizational elements can be structured from the point of view of accounting, materials
management and sales and distribution. It is possible to combine these structures. The organizational
structures form a framework in which all business transactions can be processed.
Following organizational units represents Sales and Distribution module:
 Sales Organization
 Distribution Channel
 Division
Sales and Distribution module uses some other organizational units which are maintained by
other module in SAP, such as:
 Company Code (Finance Module)

 Plant (Material Management Module)
 Storage Location (Material Management Module)
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4.1. Organization Elements on SAP
4.1.1. Sales Area

Sales and Distribution is organized according to sales organization, distribution channel and division. A
combination of these three organizational units forms the Sales Area.
Organizational Elements for Sales Area
Organizational Elements Definitions
Sales Organization
The sales organization is an organizational unit
within logistics that structures the company
according to its sales requirements and it is
responsible for selling and distributing goods
Distribution Channel The distribution channel represents the

channel through which sales materials reach to
the customers
Division Represents the product line
4.1.2. Configuration Requirement

Following organizational structure for sales and distribution will be deployed at UDPL:
4.1.2.1. Sales Organization

Based on AS IS discussions, following sales organization will be configured in the system for UDPL:
The Sales Organization will be assigned to its relevant Company Code.
Please refer to Financials (FI) module’s Business Blueprint document: BBP_UDPL_FI_Ver2.0 Section:
1.4. for UDPL Company Code coding and definition.
Code Description Definition
The sales organization within

logistics, sales and distribution
2000 UDPL business that structures UDPL,
according to its local sales
requirements.
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4.1.2.2. Distribution Channel
Based on AS IS discussions, following distribution channel will be configured in the system for UDPL:
Code Distribution Channel
01 Dealer Sales
04 Institutional Sales
60 Retailer Sales
90 Others / Misc. Sales
4.1.2.3. Division
Based on AS IS discussions, following divisions will be configured in system for UDPL:
Code Division
00* Cross Division applicable for ALL divisions
01 Pesticides
02 Fertilizers
03 Animal Health
04 Seeds
90 Others
The highlighted Distribution Channel is incorporated after BBP Review meeting on 27th March 2018.
1. Distribution Channel: 04 – Institutional Sales
* Cross division specifies a division where you can define customer master records and share them with other
divisions. Customer-divisions are a way of sharing master data between different divisions. You can specify one
division as the source of master data for other divisions. You need then only to maintain the customer master data
in one place is proposed. For Example:
Division Customer - Division
01 01
02 01
03 01
04 04
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In this example, only divisions 01 and 04 have customer master data defined. Divisions 01, 02, and 03 share the
customer master data defined for division 01. Division 04 has its own customer master data. If you create a sales
order in division 03, the system checks the customer master data from division 01. You cannot create customer
master data for divisions 02 and 03, since it would never be used.
Above is proposed at the moment and same will be finalized further once the complete pricing understanding is
obtained.
(Naming conventions, description and/or configurable SAP codes and their respective description mentioned above
can be altered, changed or modified within the allowed character limit provided by the SAP during the BBP and
realization phase)
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4.1.2.4. Sales Area
A sales area is a unique and allowable combination of a sales organization, distribution channel and
division. Each SD document is assigned to exactly one sales area and this assignment cannot be
modified. During the processing of Sales and Distribution documents, the system accesses master data
for customer, materials and conditions according to the sales area.
Following sales areas will be available in SAP for UDPL:
Sales Distribution
Division Sales Area
Organization Channel
2000 01 00 2000-01-00
2000 01 01 2000-01-01
2000 01 02 2000-01-02
2000 01 03 2000-01-03
2000 01 04 2000-01-04
2000 01 90 2000-01-90
2000 04 00 2000-04-00
2000 04 01 2000-04-01
2000 04 02 2000-04-02
2000 04 03 2000-04-03
2000 04 04 2000-04-04
2000 04 90 2000-04-90
2000 60 00 2000-60-00
2000 60 01 2000-60-01
2000 60 02 2000-60-02
2000 60 03 2000-60-03
2000 60 04 2000-60-04
2000 60 90 2000-60-90
2000 90 00 2000-90-00
2000 90 01 2000-90-01
2000 90 02 2000-90-02
2000 90 03 2000-90-03
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Sales Distribution
Division Sales Area
Organization Channel
2000 90 04 2000-90-04
2000 90 90 2000-90-90
The highlighted Sales Areas are incorporated after BBP Review meeting on 27th March 2108 wherein
the need of new Distribution Channel was raised.
1. Distribution Channel: 04 – Institutional Sales
4.1.2.5. Plant
Please refer to Material Management (MM) module’s Business Blueprint Addendum
ADD_BBP_UDPL_MM_Ver1.0 section: 1.1 for complete Plant(s) list / information.
4.1.2.6. Storage Locations

The storage location is an organizational unit that allows the differentiation of material stocks within a
plant.
Inventory Management on a quantity basis is carried out at storage location level in the plant.
Please refer to Materials Management’s (MM) Business Blueprint Addendum

ADD_BBP_UDPL_MM_Ver1.0 section 1.2 for complete list of storage locations including Finished and
Returns Goods Storage locations.
4.1.2.7. Shipping Point

Shipping point is an organizational element that manages shipping activities. Each outbound delivery
is processed at a shipping point. A shipping point can be a physical location or a logical location.
Shipping points are assigned to plants. A shipping point should have physical proximity to the plant to
which it is assigned.
Shipping point is a place from where delivery is executed. Each shipping point is assigned to a plant.
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Following shipping points will be configured for UDPL:
Company UDPL SAP UDPL SAP Shipping SAP

Plant
Code Organizational Representation Organizational Representation Point Representation
Code
Unit unit
UDPL Shipping
2000 2000
UDPL KHI Point - Karachi
UDPL Shipping
2001 2001 Point –
UDPL HYD Hyderabad
UDPL Shipping
2000 2002 2002
UDPL Company UDPL UDPL MUL Point – Multan
UDPL Shipping
2003 2003
UDPL QTA Point – Quetta
UDPL Shipping
2004 2004
UDPL SUK Point – Sukkur
UDPL Shipping
2005 2005
UDPL PWR Point - Peshawar
realization phase)
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4.1.2.8. Configuration Data – Organizational Structure
United Distributors Pakistan Limited Sales & Distribution Organizational Structure

BBP-UDPL-SD-001
Company Code
2000
United Distributors
Pakistan Limited
Organization
Sales
2000
United Distributors
Pakistan Limited
Distribution
Channel
90
01 04 60
Others / Misc.
Dealer Sales Institutional Sales Retailer Sales
Sales
Division
00* 01 02 03 04 90
Cross Division* Pesticides Fertilizers Animal Health Seeds Others
realization phase)
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5. Master Data
5.1. Overview
Master data contains information that is always used in the same way. Master data forms the basis of
sales and distribution processing. Data about the products as well as about the business partners
(customers) are the basis for sales processing. Sales processing with the SAP ECC system require that
the master data is maintained in the system.
This section contains all the information regarding the customer master data processes in SAP SD.
The Customer Master would include all the details regarding the customers which are to be maintained
into the system and used as and when required.
SD is responsible for the creation and maintenance of the following data:
5.2. Customer Master Data

A customer is a business partner with whom the company exchange goods and services.
In sales and distribution, products are sold to business partners or services are performed for them.
Data about the products and services as well as about the business partners are the basis for sales
processing. System require that the master data has been stored and available in the system.
Customer master is a centrally shared data which can be used by the logistics modules as well as the
finance module. Information retained in the customer master record can both be descriptive and have
functional control depending on the usage.
The customer master data has three views:
5.2.1. General Data

General Data is maintained independent of the organizational elements. The data found here is
common to all organizational structures within the client.
In order to maintain the general data in the customer master that is relevant for both sales & distribution
and accounting, the data fields are grouped on several tab pages. The general data includes Name,
Address, telephone number, other contact details etc. will be maintained.
NTN: Customer’s NTN, if required, can be maintained in customer master’s data General Data.
NTN Customer NTN (XXX-XXXX)
Sales Tax Registration Number: Customer’s GST number, if required, can be maintained in customer
master’s data General Data.
STRN Customer STRN (XXX-XXXX-XX)
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Computerized National identity card: Customer’s CNIC, if required, can be assigned in customer
master’s data General Data.
CNIC Customer CNIC (XXXXX-XXXXXX-X)
5.2.3. Sales Area Data

Sales Area Data is relevant for sales and distribution processes and is specific to a given sales area.
You can maintain the sales area data in various ways, depending on the sales area (a combination of
Sales organization, Distribution channel and Division). All the sales related information will be
maintained in this area. Including, Sales, Shipping, Billing and Partner Function. All the data present in
the system will be applicable only for that specific sales area. The customer can be extended for any
other sales area as well depending upon business requirement(s).
This view is to record the data of customer related to sales and distribution transaction such as data for
sales process, delivery process, billing process and partner function.
The data for one customer can differ for each sales area. This data is only relevant to Sales and
Distribution.
If you edit a customer master record, you must enter the customer number and the sales area in order
to access screens containing sales and distribution data.
You can only process sales and distribution transactions, for example, a sales order, after entering the
sales and distribution data for a customer in the customer master.
All critical fields that must be maintained by the business in the system are set as mandatory fields, so
that the users will not miss to incorporate all necessary data to be carried out during the sales
transaction(s).
Sales Area data is further classified in following Four (04) tabs / sections:
5.2.2.1. Sales
Customer Geographical Hierarchy
UDPL customers will be geographically mapped on Sales Hierarchy which is highlighted in the table
below. Every sales transaction will hold these parameters and will also allow reporting and pricing, if
required, on these parameters.
UDPL needs to prepare and submit master data for sales hierarchy as per provided in the master data
templates.
S. No UDPL’s Sales Field mapping in SAP No. Of

Hierarchy Characters
1 Region (Province) Sales District 06
2 Branch Sales Office 04
3 Area (Territory) Sales Group 03
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Sales District
A geographical segmentation which defines sales higher level of sales geographical notation. Each
customer can be assigned to a sales district. When you want to generate sales statistics, you can use
sales districts as selection criteria.
Sales District Description
S00001 Sindh
P00001 Punjab
B00001 Baluchistan
K00001 KPK
Sales Office
A sales office establishes contact between the firm and the customers under the instruction of Head
Office. It monitors company sales in the market which is done by company’s sales force. It also resolves
all issues between customer and company.
A physical location (for example, a head or an area office) that has the responsibility of the sale of
certain products or services within a given geographical area. You can assign each customer to a sales
office in the customer master record.
Sales offices represent a sales branch. It can be defined as a regional hub of all the sales and collections
activity.
In case of UDPL Sales structure, Sales Offices represents sales order capturing / booking office(s).
Sales Offices Description
2001 Karachi
2002 Hyderabad
2003 Sukkur
2004 Multan
2005 Quetta
2006 KPK
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Sales Group
A sales office can be sub divided into sales groups. In case of UDPL’s sales hierarchy, these sales
groups are a further classification of Sales Offices.
Assigned to Sales
Sales Group Description Office Description
001 Karachi 2001 Karachi

004 Badin 2002 Hyderabad
006 Hyderabad 2002 Hyderabad
007 Khaipro 2002 Hyderabad
010 Nawabshah 2002 Hyderabad
013 Tando Adam 2002 Hyderabad
014 Tando Alla Yar 2002 Hyderabad
015 Thatta 2002 Hyderabad
017 Dharki 2003 Sukkur
018 Jaccobabad 2003 Sukkur
019 Larkana 2003 Sukkur
020 Noushahro Feroze 2003 Sukkur
021 Sukkur 2003 Sukkur
022 Ahmedpure 2004 Multan
023 Alipur 2004 Multan
024 Arifwala 2004 Multan
025 Bahawalnagar 2004 Multan
026 Bahawalpur 2004 Multan
029 D.G.Khan 2004 Multan
030 Depalpur 2004 Multan
031 Faisalabad 2004 Multan
032 Gujranwala 2004 Multan
033 Hasilpur 2004 Multan
034 Jahnian 2004 Multan
036 Jhang 2004 Multan
037 Khanewal 2004 Multan
042 Lodhran 2004 Multan
044 Mianwali 2004 Multan
045 Multan 2004 Multan
046 Muzafargarh 2004 Multan
047 Okara 2004 Multan
048 Pak Pattan 2004 Multan
049 Rahim Yar Khan 2004 Multan
050 Rajanpur 2004 Multan
052 Sahiwal 2004 Multan
056 Vehari 2004 Multan
057 Loralai 2005 Quetta
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Assigned to Sales
Sales Group Description Office Description
058 Pishine 2005 Quetta

059 Quetta 2005 Quetta
060 D.I.Khan 2006 KPK
061 Peshawar 2006 KPK
062 Swat 2006 KPK
071 Khanpur Mehar 2003 Sukkur
072 Khairpur 2003 Sukkur
073 Ghotki 2003 Sukkur
077 Digri 2002 Hyderabad
078 Tharparkar (MPK) 2002 Hyderabad
079 Matli 2002 Hyderabad
080 Golrachi 2002 Hyderabad
081 Mirpurmathelo 2003 Sukkur
082 Mehrabpur 2003 Sukkur
083 Basirpur 2004 Multan
084 Hujra Shah Muqeem 2004 Multan
085 Peshawar II 2006 KPK
086 Khanpur 2004 Multan
087 Haveli Lakha 2004 Multan
The above sales geographical structure is designed by referring to the excel file containing Sales
Geographical Hierarchy (first tab: Region) of the UDPL shared via email on 20th March 2018.
RE Project
Task.msg
As per meeting on 18th April 2018 Sales Hierarchy and its levels i.e. 03 were finalized.
RE BBP Addendum
.msg
The above sales geographical structure is designed by referring to the excel file containing Sales
Geographical Hierarchy (tab: Area List) of the UDPL shared via email on 19 th April 2018.
RE Project
Task.msg
There is a possibility that the Sales Group SAP coding and description can be changed / edited /
modified during the realization phase by taking into account the sales geographical structure of all the
companies where SAP has already been implemented or will be implemented in the future at the IBL
Group.
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5.2.2.2. Shipping
Following information will be maintained in Shipping tab page:
 Delivery Priority: defines the priority of the customer for delivering of goods
 Shipping Conditions: following shipping conditions are proposed in the customer master for
correct shipping point determination at Sales Order and Delivery Order:
Shipping
Conditions Description
U1 Karachi
U2 Hyderabad
U3 Multan
U4 Quetta
U5 Sukkur
U6 Peshawar
(above will be rationalized further during realization phase)
 Delivering Plant: In SD perspective, Plant is an organizational unit from where the goods are
delivered to the customer
5.2.2.3. Billing
Following information will be maintained in the Billing tab page.
Inco terms
Inco terms specify certain internationally recognized procedures that the shipper and the receiving party
must follow for the shipping transaction to be successfully completed.
Inco terms Description
CFR Costs and freight
CIF Costs, insurance & freight
CIP Insured freight-free
CAD Cash against document
CPT Freight-free
DAF Border delivered
DDP Delivered cleared by customs
DDU Delivered not cleared by customs.
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Inco terms Description
DES Delivered from ship
EX From storage
FCA Free freight
FOB Free on board
UN Not free
Customer’s License Number & Expiry
Customer’s License number and expiry of the same, if required, can be assigned in customer
master’s data Sales Area > Billing tab > Taxes > Licenses.
License Number Customer License (Character length to be shared and

confirmed by the business)
License Expiry Expiry Date
Provision for maintaining Customer’s Licence number and License’s expiry date fields shall be
identified, finalized and rationalized during the realization phase keeping in view the technical impacts
on other SAP modules along with the business transactional impacts on other IBL entities.
Terms of Payment
Please refer to Financials (FI) module’s BBP_UDPL_FI_Ver2.0 section 5.3.2. for Payment Terms
details.
Additionally, in order to cater seasonal discount pricing requirement in the SAP, following six (06)
Payment Terms will be created which are specific to Sales & Distribution module only:
1. ZSD1 – Seasonal Disc. Phase 01

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Tax Classification
Specifies the tax liability of the customer, based on the tax structure of the customer's country.
You can use the tax classification to specify, for example, whether a customer is liable for taxes
at the time of sales, such as GST or Excise taxes.
Tax Category Tax Classification
0 – Tax Exempt
ZMWS (General Sales
1 – Zero Rated
Tax)
2 – Full Tax – (07% / 17%)
0 – No Tax
ZFTX (Further Tax)
1 – Unregistered – 02%
The above further Tax classifications are designed based on the Pricing information shared via email
on 16th April 2018. Pricing Structure and calculation was shared via email on 23rd April 2018
UDPL TAX AND RE UDPL TAX AND RE Project Task

DISCOUNT FOR SD MODULE.msg
DISCOUNT FOR SD MODULE.msg FOC Scenarios.msg
realization phase)
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5.2.2.4. Partner Function
The four highlighted are the mandatory partner functions. These mandatory partner functions are
required to process a sales and distribution transaction. Other partner functions can also be
added depending on the need.
Business Partner Description
Sold to Party Person or company that places an order for

goods. The sold-to party can also perform the
functions of the payer, bill-to party or ship-to
party.
Ship to Party Person or company to where the physical

delivery of the goods is required.
Bill to Party Person or company to where the invoice is

required to be sent.
Payer Person or company who pays for the

transaction.
Parent Customer For consolidating Customers operating with

different names at header
Child Customer Assigning child or associated Customers

operating with different names with Parent
Customer
Territory Sales Manager Territory Sales Manager will be assigned in the

Customer Master Data of the Sold to Party
Territory Sales Officer Territory Sales Officer will be assigned in the

Customer Master Data of the Sold to Party
Note: In most cases all the four functions (Bill to party, Ship to party, Sold to party, Payer) are the same.
When a sold to party is created, all other functions will be created automatically. We can create more
than one ship to party for one sold to party/ Customer.
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As per meeting on 18th April 2018 Sales Hierarchy till 03 levels was finalized.
RE BBP Addendum
.msg
5.2.3. Company Code Data

Company Code Data is relevant for financial accounting processes and is specific for a given
company code.
This view is to record data of customer related to accounting data such as reconciliation account, etc.
Company Code data only applies to one company code. This data is only relevant to Financial
Accounting, and includes:
o Account management data
If you edit a master record, you must specify the customer number and company code to access the
screens containing company code data.
You can only invoice a business transaction if the data on the payer partner function is entered in the
Financial Accounting view.
realization phase)
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5.3. Customer Master Creation Process
5.3.1. Process Flow
Sales can only be recorded in SAP against a customer. Therefore, a customer account must always be
created in system.
BBP-UDPL-SD-002 Create Customer Master
3
Sales Department
1 Communicate
Get Sales related
the existence of
Request for new data from sale
Start the customer End
Customer Master department and
Finance related with customer
<Process Name> number <Process Name>
data from Finance
2
No 5
2.1 Yes
MDM Controller
Check Existence
4
2.2
Communicate
Create new customer
Customer number to the
per account concerned
group
person
5.3.2. Process Description

1. A request will be raised by the concerned department for the creation of Customer in the SAP
system, in UDPL’s case; Sales Department will raise the requirement for the creation of new
customer in the customer master record
2. The Master Data Management (MDM) Controller will check and ensure whether the Customer
Master record already exists in the system for the requested customer or not:
2.1. if the record exists, Master Data Management (MDM) Controller will communicate the
existing Customer code to Sales Department
2.2. if the record does not exist, following steps will be followed
3. If the customer record does not exist, Sales Department will be asked to furnish Customer’s
required details. Sales relevant data will be provided by the Sales Department and Finance
related information will be furnished by Finance Department
4. Master Data Management (MDM) Controller will create the requested Customer under the
relevant Account Group
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5. Master Data Management (MDM) Controller will communicate the new Customer number
generated internally by the SAP system to concerned personnel in the Sales Department
Customer Master Data - Process Flow

 System will always assign an internally generated number to each customer created
 Customer’s Old Numbers (used in legacy system can be maintained in the search term field
available field within customer master > general data > address)
 All customers will be created for a specific sales area, which comprises of the sales
organization, distribution channel and the division. The customer can be extended on multiple
sales areas based on the requirement
 For Customer Master Data maintenance in the SAP, functions are available to create, change
and display the customer master data. If required, proper authorization can be assigned through
Authorization Matrix
Create Customer Master Data

For the creation of the Customer Master Data, proposed process will be followed and each customer
will be created for a specific sales area. If the same customer is required for other distribution channels
or divisions for that matter, then same customer number can be extended to the other distribution
channel and / or division.
Change Customer Master Data

System has the option to change the Customer Master details as and when required, which will be
allowed to user by following the proper Authorization Matrix. Detail log will also be updated against the
customer number if any kind of amendments are done.
Display Customer Master Data

Displaying the Customer Master, authorization will allow viewing the detail of the master data. This
authorization also depends upon the organization’s policies and for the same, proper authorization
matrix can be developed.
Block Customer Master Data

If a customer becomes inactive and if not to be used in the future, it may be blocked.
Customer Master Input Fields
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Field Name Purpose
General Data
Customer’s unique SAP code will be generated internally by the

Customer Code
SAP
Customer Name Unique customer name
Customer Address Customer’s address and physical location of customer
Customer City Customer’s city of operations
Search Term Legacy Customer Code in order to search customer
Country Country where the Customer is located
Customer Telephone Number Customer’s contact number
Customer Fax Number Customer’s facsimile number
Customer Mobile Number Customer’s mobile number
Customer Email Customer’s email address
CNIC Customer’s Computerized National Identity Card Number
NTN Customer’s National Tax Number
Sales Tax Registration

Customer’s Sales Tax Registration Number
Number
Company Code Data
Reconciliation account in G/L that is updated on postings for

Reconciliation Account
invoice
Terms of Payment Key for defining payment terms
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Mode of payment in which customer pays (UDPL is requested to
Payment Methods coordinate with FICO module for further understanding and
finalization)
Sales Area Data
Delivering Plant Location from where the stock is issued to the customer
Sales District A geographical sales district
Sales Office Define the zone for the customer
Sales Group Sub part of Sales Office
Currency Define Currency for Sales Order Processing
Terms of Payment Key for defining payment terms
Output Tax Classification Identification for customer’s tax liability
License Number License number of the dealer involved in the sales of pesticides
License Expiry Date Expiry date of the license
Dealership Certificate Dealership Certificate number of the dealer involved in the sales
Number* of pesticides
Dealership Certificate Expiry

Dealership Certificate Expiry date of the certificate
Date*
*Since it is a customized requirement, field identification and finalization shall be materialized further
during realization stage by taking account into account possible impacts on other entities.
Apart from the above fields, there are other standard fields maintained in the customer master for
recording and maintaining additional details for any customer. However, while creating customer
master; if the fields, mentioned as mandatory at the back end and if the same are not filled / populated
with the relevant data then the system will not allow the user to proceed further.
The process of identifying optional or mandatory or hiding any particular field for a particular Account
Group can be rationalized during realization and PU user trainings.
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5.3.3. Configuration Data
The configurations of the Customer Master Data start from Account Group. Account group ensures that
the availability of the required information/fields in the customer master. Information requirement
depends upon the business requirement.
Account Group Description
2001 Local Registered - Dealers
2002 Local Unregistered - Dealers
2003 Local Customers - Farmers
2004 Local Customers - Retailers
2005 Sold to Party
2006 Ship to Party
2007 Bill to Party
2008 Payer
2009 One Time Customer
2010 Local Customers - Institution
2011 Local Parent Customer
Account Groups 2010 and 2011 was added during the BBP review / revisit meeting on 27th March 2018.
realization phase)
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5.4. Material Master Data
5.4.1. Overview
Material Master is a centrally shared data used by all logistics modules. Information captured in the
material master record can be descriptive or can have functional control depending on the usage. This
information can be maintained across several organization levels or can be maintained for specific
organization level (e.g. Plant, storage location, sales organization etc.)
In addition, the accounts affected by a material entering or leaving the warehouse depend on the
material type
Sales processing is based on the following basic structures:
 In sales and distribution, products are sold to business partners or services are performed for
them. Data about the products and services as well as about the business partners are the
basis for sales processing. Sales processing with the SAP System require that the master data
has been stored in the system
 In addition to the sales and distribution, other departments of the company such as accounting
or materials management or production planning or quality management access the master
data. The material master data is stored in a specific structure in order to allow access from
these different views
 The processing of business transactions in sales and distribution is based on the master data.
In the SAP System, business transactions are stored in the form of documents. These sales
and distribution documents are structured according to certain criteria so that all necessary
information in the document is stored in a systematic way
5.4.2. Material Master Creation

A material master record is to be either created or extended when:
 No material master record exists for a particular material
 Material master record exists for a particular material but has not been created for particular
organizational level e.g. specific plant or storage location
When an end user department (Sales department) needs a particular material for maintenance or sales
purposes, user will search for the material number in the SAP database. If the material is not available,
user will generate a request to the concerned department/person responsible for master data creation
in order to create the material master record in the system.
The Department/Person responsible for creating material master will create master data by selecting
correct material type and entering all relevant information.
Master data relevant to materials is more specifically generated in the Materials Management work
area, however each saleable material is extended to a particular combination of sales organization and
distribution channel (sales – line), for registering sales. Unless a material is not extended to at-least one
sales line the system will not allow the user to book sales. Material master is extended to a particular
sales line by maintaining sales related views. The following sales views for all saleable material(s) will
be maintained for each material:
 Sales: Sales Org. Data 1

 Sales: sales org. Data 2
 Sales: general/plant Data
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Please refer to Material Management (MM) module’s BBP_UDPL_MM_Ver2.0 Chapter: 2.7 Section:
2.7.1.2. process number: BBP-UDPL-MM-001 for the process of Creation of Material Master of the
Finished Goods.
Material Types
For all stock materials to be maintained, a material master record is to be created. A material number
will uniquely identify this record.
The first step to creating the material master is to assign a unique identification number. The material
number length (coding) will be finalized by Material Management (MM) module and will be assigned
internally by the system. Number assignment is dependent upon the material type.
The material type groups materials with similar characteristics and attributes. It also determines whether
the material will be valued at a standard price or at a moving average price. It also maintains which
screens are to be maintained depending upon the screen sequence assigned.
Once a material has been maintained in the SAP database, changes need to be made for master data’s
maintenance. Therefore, the material master record can be:
 Extended: Material master extension is used when organizational level data or departmental
data has not been maintained. The extension process allows the user to define these levels
(e.g. the purchasing data view has not been maintained, or the material has not been extended
for a certain storage location). It’s a process is similar to material creation.
 Changed: If the data maintained needs to be altered, the record can be changed using the
material master change transaction.
Please refer to Materials Management’s (MM) Business Blueprint Addendum

ADD_BBP_UDPL_MM_Ver1.0 section 1.4. for complete list of Material Types.
Unit of Measure
Unit of measure are measures in which stocks of the material are managed. The system converts all
the quantities the user enters in other units of measure (alternative units of measure) to the base unit
of measure.
The user defines the base unit of measure also alternative units of measure and their conversion factors
in the material master record. In Inventory Management, the base unit of measure is the same as the
stock keeping unit. SAP has different standard unit of measures available.
At UDPL, Sales Unit of measure will be same as Base Unit of measure in which Production Planning
(PP) module will be confirming the production of Finished Materials.
Material Master Data – Process Input

Sales and Distribution is only responsible to maintain the below mentioned views in creation of Material
Master finished product.
The following overview includes a short description of the individual sales and distribution screens, and
lists the important data fields found on these screens.
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View Name Description & Important Data Fields
Sales: Sales Org. Data 1 Basic sales relevant data, tax classification, delivering plant, units of
measure (e.g. base & sales unit of measure)
Sales: Sales Org. Data 2 Account Assignment Group of Material, Material groupings (e.g. product
hierarchy, material group)
Sales: General/Plant Data Sales and shipping data (e.g. gross and net weight, loading group,
availability check, transportation group, loading group) Profit Centre can
also be entered here
5.4.3. Material Group

Material Group is used for recording particular attributes of the Finished Goods which may contain
product’s specification.
The Material Groups for Finished Goods Material will be configured by referring to the excel sheet
containing same of the UDPL shared via email on 23rd April 2018.
RE UDPL - BBP Final Sales Group

Review session 27 3 and
2018Office
.msg - UDPL.XLSX
5.4.4. Transportation Group

Transportation groups are used to group materials which require same mode type of transportation. For
example, via Road. UDPL primarily uses Road transport as a means of transportation and hence
Transportation Group will include Road Transport by Transporter.
Transportation Group Description
2001 By Transporter
5.4.5. Loading Group

Loading groups are used to group materials which require the same loading equipment. Below loading
group will be mapped in each salable material master record.
Loading groups are used in the Shipping point determination.
Loading Group Description
2001 Labor / Manual
realization phase)
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5.5. Condition Master Data (Pricing)
5.5.1. Process Definition
The term pricing is used broadly to describe the calculation of prices (for external use by customers)
and costs (for internal purposes). Conditions represent a set of circumstances that apply when a price
is calculated. For example, a particular customer orders a certain quantity of a particular product on a
certain day. The variable factors here - the customer, the product, the order quantity and the date (Key
combination at the time of generating sales orders). The information about each of these factors can
be stored in the system as master data. This master data is stored in the form of condition records.
For Condition Master Data maintenance in SAP functions are available to create, change and display
the condition master data. If required proper authorization will be assign through Authorization Matrix.
Create Condition Master Record

Condition record will always be created by keeping the business scenario in back of the mind. SAP SD
has the functionality to create different condition records. For example, for “Basic Price”, depends upon
the customer and secondly depends upon customer and material. Condition record will work on specific
to general philosophy. If you define price depend upon the customer and material so system only access
the specific condition record it will not go for the material condition record, until or unless first record
was not created or found.
Change Condition Master Record

System has the option to change the Condition Master Record as and when required, which will be
allowed to user by following the proper Authorization Matrix. Detail log will also be updated against the
material number if any kind of amendments has been done. Previous value will remain saved in the
system if you are changing your pricing.
Display Condition Master Record

Display the Condition Master authorization will allow viewing the detail of the master data related to
pricing factors of the related sales area. This authorization also depends upon the organization policies
and for the same, proper authorization matrix can be developed.
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5.5.2. Process Overview - Pricing
BBP-UDPL-SD-003 Pricing Master
Start
Sales Department
<Process Name>
1
Price Negotiation
and finalization
3
2
MDM Controller
Prices are Prices are

reviewed maintained in the
system
4 If Condition record found

5.1.1
6
5.1
5
At the time of IfIfany
anyCondition
Condition record
record exist
After reviewingSales
After reviewing SalesOrder
Order
Sales order First Check customer & material then exist
thatthen that
will be will inbethe
copied
sales
Pricing
Pricing
creation system related copied in theorder
sales order
will first check
Event
the prices from

the master data 5.2
If Condition record is not found 5.2.1 If Condition record found
Saves Sales
Save sales order
Order
Material Specific Pricing
5.2.2 <Process Name>
If no record found No value will be copied in the
sales order
5.5.3. Process Flow Description – Local

1. Process will initiate once Sales Department has negotiated and finalized the pricing with the customer
2. Pricing conditions are reviewed by the concerned department and will be maintained by the Master
Data Management (MDM) Controller in the SAP system
3. Confirmed on the price approval sheet, prepared by Sales Department manually, which sales has
initiated and same will be maintained in the system by the Master Data Management (MDM) Controller
4. When the sales order is created, system will check the pricing conditions maintained in the condition
records as per defined condition tables / access sequence
5. System, based on Condition Tables / Access Sequences’ configured sequence,
5.1 First, system will check, for example, the Customer / Material wise pricing:
5.1.1 If the condition record is found, same will be copied in the sales order
5.1.2 If the condition record is not found, system will proceed to the next step / access in the
access sequence
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5.2 System, based on Condition Tables / Access Sequences’ actual sequence, will check the next
access, for example, Material / Finished Goods relevant pricing:
5.2.1 If the condition record is found, same will be copied in sales order, after reviewing the
same user will save the Sales Order
5.2.2 If the condition record in the Material specific access and / or in any of the preceding
Accesses in the Access Sequence is not found, no values will be copied in the Sales
Order and concerned user and department will be required to maintain approved
pricing in the system
6. When the condition record is found and copied into Sales Order, after reviewing the pricing in Sales
Order, user saves the order
5.5.4. Configuration Data

Condition records will be generated as per business requirement. Information available is basically the
key combination to create a specific condition records. Normally following are the key combination(s)
on which the price will derive:
 Sales Organization
 Distribution Channel
 Division
 Sold to Party
 Customer Number
 Material Number
For UDPL, pricing will normally be catered as per:
 Customer and Material wise pricing based on Sold to and specific Finished Goods material
 Material specific pricing
Pricing Components
Pricing Components Purpose
Revenue All prices and revenue related pricing components will be

covered in this head
Discount / Surcharges All discount and surcharges will be covered in this head
Taxes Taxes will be covered in this head
Pricing Master Data Maintenance

Pricing rate of the Product should be maintained in master data, so that during order processing, the
system will get the price valid for that particular customer or product within a specific period.
All of the pricing elements that you use in your day-to-day pricing procedures - the prices, surcharges,
discounts, freight charges, and taxes – must be defined in the system as condition types. When you
create or maintain pricing information for a particular pricing element in the system, you create condition
records.
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For the system to automatically determine pricing, the following pre requisites must be met:
 Condition records must already exist in the system for each of the condition types that you want
the system to apply automatically
 Where necessary, data must be maintained in the corresponding customer and material master
records. If, for example, you want to apply discounts to special groups of customers or
materials, then the system can only carry out automatic pricing when the groups are specified
within the relevant customer or material master records
5.5.4.1. Condition Types

Following condition types were designed based on the Pricing information shared which was shared by
the UDPL via email on 16th April 2018 mentioned in the first and second tab (Tax and Discount) of the
attached excel sheet. Pricing Structure and calculation was shared via email on 23rd April 2018.
RE UDPL TAX AND UDPL TAX AND RE Project Task

Pricing Description Calculation Type

Components
ZPR0 Base Price Rate*Quantity per Sales Unit of

Measure
ZSDD Seasonal Discount Percentage
ZPZD Pre-Zero Discount Percentage
ZSD1 Seasonal Disc. Phase 01 - Additional Percentage
ZSD2 Seasonal Disc. Phase 02- Additional Percentage
ZMWS General Sales Tax Percentage
ZFTX Further Tax Percentage
ZWHT WHT 236 G Percentage
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Tax Determination Procedures
Customer:
 ZMWS - Sales Tax

o 0 – Tax Exempted
o 1 – Zero Rated
o 2 – Full Tax – 17%
 ZFTX – Further Tax

o 0 – No Tax
o 1 – 02 % - Unregistered
Material:
 ZMWS - Sales Tax

o 0 – Tax Exempted
o 1 – 17% - Fertilizer
 ZFTX – Further Tax

o 0 – No Tax
o 1 – Full Tax - Unregistered
Determination of Output Tax Rate - ZMWS

Following will be the process of determining Sales Tax rate using the combination of Customer and
Material Tax classifications:
Customer Tax Material Tax Rate Determined

Classification Classification
0 0 0%
0 1 0%
1 0 0%
1 1 0%
2 0 0%
2 1 17%
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Determination of Further Tax – ZFTX (Unregistered)
Following will be the process of determining Further (Sales) Tax rate using the combination of Customer
and Material Tax classifications:
Customer Tax Material Tax Rate Determined

Classification Classification
0 0 0%
0 1 0%
1 0 0%
1 1 02%
5.5.4.2. Pricing Structure

Following Pricing Procedure was shared by the UDPL via email on 16th April 2018 referring to the first
two (02) tabs (Tax and Discount) of the attached excel sheet. Pricing Structure and calculation was
shared via email on 23rd April 2018.
RE UDPL TAX AND UDPL TAX AND RE Project Task

Process Input
Field Name Purpose
Sales Organization
Sales organization for which pricing is required to be maintained
Distribution Channel Distribution Channel through which material can be sold
Division Division assigned to the material
Customer Customer for which rate is applicable
The rate that determines how the system calculates pricing using this
Rate condition. Depending on the condition type, the rate can be a fixed amount
or a percentage. If the condition includes a pricing scale, the rate displays
the first line of the scale
The unit that determines whether the condition for a material is based on
Rate Unit a percentage or on an amount in a particular currency. The use of the rate
unit depends on the condition type (for example, whether the condition is
a material price or a customer discount)
Validity Start Date from which the condition is valid
Validity End
The date up to which the condition is valid
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5.5.5. Seasonal / Collection Discount Slab
A brief on the AS IS handling of the seasonal discount:
 this type of discount is offered to dealers before the start of the season usually from December
to February every year
 this discount is sort of a sales drive which the UDPL initiates to encourage dealers to deposit
cash in advance and in return, offer special discounts other than the normal ones
 phase wise discounts are offered to the dealers’; examples of which are:
o first 15 days of December, X percentage of discount will be offered to the customers

depositing within first 15 days of December which is on the higher side and a policy
number is assigned manually in the legacy system
o last 15 days of the seasonal discount Y percentage of discount shall be offered which
will be on the lesser side and a policy number is assigned manually in the legacy
system
 at the time of sales order execution, the order puncher selects the policy number / code and
same percentage of special discount is applied on the sales order / invoice
A brief on the TO BE of the Seasonal Discount:
Six (06) pricing condition types are proposed below against which required percentage of discount will
be maintained:
1. ZSD1 – Seasonal Disc. Phase 01- Additional

Based on above, (06) six payment terms with same settings as of Advance Payment shall be required
from FI (Finance) module that will be specifically used for SD pricing – seasonal discount purposes
only:

At the time of advance receipt / booking during Seasonal Cash Collection drive, following information
will be recorded:
1. Customer Code
2. Territory Sales Manager / Territory Sales Officer (will be assigned in Customer Master >Sales
Area Data > Partner Functions tab so it will not be required to be maintained at the time of
advance booking)
3. Policy / Phase number (payment terms code shall be used as a reference of phase of the
seasonal discount)
4. Payment method whether in cash or DD
5. Provisional receipt number (every TSM / TSO has a receipt book which is audited regularly) to
be maintained in the defined text field by the Finance module
6. Amount of the advance deposited
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At the time of Sales Order booking,
 Order puncher will select and enter the Sold to party SAP code in the sales order
 Order puncher will enter Material to be sold
 User will then select the relevant payment terms for required phase of the Seasonal Discount
to be applied which will call the required condition type with the maintained discount percentage
from the pricing master in the pricing procedure of the sales order
realization phase)
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5.6. Free Goods
In many industries such as retail or consumer goods industry, it is common to provide discounts in the
form of free goods.
The following forms of free goods exist in the standard SAP SD:
Inclusive
Free goods can be part of the order quantity not included in the invoice. This is called an inclusive bonus
quantity. The ordered goods and the free goods both involve the same material. The quantity units of
the free goods and ordered goods.
Exclusive
Free goods can also take the form of extra goods that are free of charge. These are called exclusive
bonus quantities.
In exclusive bonus quantities, the extra goods are delivered free of charge and are not included in the
invoice. This can either be an additional quantity of the goods ordered or it can be another article.
The exclusive free goods appear in the sales document as a separate, free-of-charge item.
Both forms of free goods are handled in the same way in the sales order. The material that has been
ordered is entered as a main item and the free goods material is automatically displayed as a sub-item.
The system determines the free goods automatically by accessing the relevant condition records. The
system then accesses the free goods master record with the pricing date.
The system re-reads the free goods master record in the sales order if the quantities in the main item
change or if the pricing date changes. The system then deletes the sub-items and re-creates them. Any
manual changes to the free goods quantity are lost.
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If pricing is re-run in the sales order, it does not affect the free goods determination.
You can define master records for free goods at any level - for example, material alone, customer &
material combination.
You can restrict master records for one level in many different ways:
 Validity period: The condition is only valid for a particular period

 Minimum quantity: The condition comes into effect when the defined quantity has been exceeded
realization phase)
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5.7. Customer Material Info Records
The customer-material info record is used for storing customer-specific material data. If a customer
manages a material with a number that differs from the one your company uses, a customer-material
information record can be created.
If a customer-material info record has been defined for a customer and a material, the default values
take priority over the values in the customer or material master when a document is processed.
You can use the customer-material information record to maintain the following data:
 Cross-reference from your customer’s material number to your material number and the
customer’s material description
 Specific shipping information for this customer and material (such the default delivering plant)
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Sales orders can be placed with the customer’s material number by using the Ordering Party tab page.
The system finds the associated material master via the customer-material information.
Process Input
Field Name Purpose
Customer Code SAP Customer Code

Sales Organization Sales Organization of the Customer
Distribution Channel Distribution Channel to which customer belongs
Material Code SAP Material Code
Customer’s Material Number Customer Specific Material Number
Customer’s Material Description Customer Specific Material Description
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5.8. Sales BOM
Some of the products at UDPL may consist of several components when they are sold in a bundle.
Each of these components is in turn constructed from several separate parts.
UDPL can store this structure in the system as a bill of material. All the items in the bill of material (BOM)
that UDPL wants to control in the sales document must be flagged as relevant for sales. (Please note:
the items in a bill of material are controlled differently than the item categories in a sales document). If
you create a BOM material with BOM usage 5 (sales and distribution), all the items in the bill of material
will be automatically flagged as relevant to sales.
The BOM appears in the sales document as a structure with main items and sub-items. The system
explodes the BOM in the sales order by automatically generating sub-items for the components.
A specific item category group is assigned to the material master record of the main item defines which
item categories are assigned to the sub item(s).
To determine how far the BOM should be exploded in the sales document, you need to define the extent
of the structure of the item category for the main item.
As discussed in the meeting on 16th April 2018, under Combo Pricing / Bundle Sales: Selling price will
be maintained on / for the main / header item. However, issuance from the Inventory and Costing will
be done on the sub item.
realization phase)
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6. Credit Management
6.1. Overview
Outstanding receivables can have a substantial effect on the success of a company, but with the aid of
Credit Management, the risk can be minimized by defining specific credit limits. Thus, the authorities
can take the financial pulse of a customer or group of customers and enhance their credit-related
decision-making.
Credit management minimizes credit risk by defining specific credit limits for each credit customer and
assigning risk categories to each customer. The result of credit checks influences the order creation
and subsequent delivery processing for a customer whose credit limit has been exceeded. This
functionality becomes more important in sales operations where customers are frequently extended
credit. Customer wise credit reports could be made available to the users and overall credit outstanding
can be monitored efficiently.
Salient features of SAP Credit Management

 The business entity can specify its own automatic credit checks based on Credit Limits
 Credit Limits can be maintained for each customer for any or all of the Credit control areas
 Recommended credit limits can also be maintained for each customer in a Credit Control Area
 The system will warn/block orders whenever the assigned credit limit is exceeded
 The system carries out the credit check at Sales Order, Delivery order and Post Goods Issue
stage depending upon company’s requirement where it wants the credit check to be executed
whether at Sales Order, Delivery or at the time of Post Goods Issuance (PGI)
 The authorized credit manager can release the order for dispatching
 The blocked order will only be released by the credit representative or authorized personnel,
who is assigned to release orders for that customer
Automatic Credit Control Checks

 For automatic credit control, credit management will be activated at Sales order level with a
warning message and blocked status
 For every customer proposed default credit limit will be PKR. 1/- which has to be maintained in
the Credit Master
The following information will be maintained in the credit master data:
Credit Control Area Description

Customer Number SAP generated customer number
Customer address Replicated automatically from master data
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Credit Limit Approved credit limit of the customer
(or proposed PKR 1/- Default)
Risk Category Defined Risk Category will be assigned in
customer credit master data
Credit Limit Check Process

It is vital to understand the methodology of credit exposure calculation in SAP. The formula used in SAP
for exposure calculation is as follows:
Credit Exposure = Accounts Receivable + Open Sales Orders
This can further be explained by the following example:
Customer Name: ABC Distributor
Credit Limit: PKR. 100,000
Accounts Receivable: PKR. 90,000
Open Sales Orders: PKR. 6,000
This means that sales orders worth Rs. This means that dispatches worth
6,000 have been made for this Rs. 90,000 have been made for
customer but the dispatch and the ABC Distributor and the customer
invoicing has not taken place has been invoiced for this amount
Remaining Credit Limit = PKR 4,000
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6.2. Process Flow Credit Master Data
BBP-UDPL-SD-004 Maintain Customer Credit Limit
1
Event
Customer
identified for Credit
<Process Name>
2
Department
Approval
Sales
Approval
with with
necessary data
necessary
values
data values
3
Controller
MDM
Update / Change
Customer Master
4
Department
Finance
Update /
Maintain credit
master record for
the customer

1. Customer is identified as a Credit Customer
2. Concerned personnel from Sales department will forward request with necessary data values to the
Finance department
3. Master Data Management (MDM) Controller will update / change customer master data (Sales Area
data > Billing) with relevant credit control area
4. Finance department will update the credit limit in relevant credit control area for the customer whose
credit has already been maintained and maintain credit master in relevant credit control area for
customer whose credit limit is ought to be maintained. Same will be done by maintaining following:
 Credit Control area
 Credit limit in amount
 Relevant Risk Category
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6.3. Process Flow Credit Check Process
BBP-UDPL-SD-005 Credit Limit Check Process
6
Sales Department
Sales order Sales order

created released for
delivery
2 5
SO blocked due to Sales Order stays Credit
Event
credit check
SO blocked due to credit with block status Approved
check
<Process Name>
<Process Name>
Finance Department
No
3 4.1
4.2 Yes
Review Blocked 4 Resolve
Sales
Review orderOrder
Blocked Credit

1. Sales Order is entered in the system by Sales department
2. Assuming that this sales order leads to the credit block as a result of credit limit which has exceeded
for the said customer, the system prompts with a pop up message, but that does not prevent the
user from saving the order. However, it blocks the order for subsequent processing e.g. delivery
creation
3. The Finance department reviews the block order
4. The credit manager now decides if the additional credit should be granted. Based on the decision
there can be two cases which are as follows:
4.1. if the credit is not approved; Sales Order will remain and stays with the blocked status as a
result of credit limit
4.2. if the credit is approved, the credit manager will release the Blocked Sales Order, if he has
the necessary authorization of the T-Code for the said functionality
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5. Once the credit manager releases the blocked Sales order,
6. Same can be processed for delivery and billing. Once you have saved invoice, a financial
accounting document will be generated
6.4. Configuration Data
In UDPL, one credit control area will be configured to monitor UDPL credit sales:
2000 UDPL Credit Control Area
In UDPL, one risk category will be used to monitor UDPL sales:
Risk Category Description
Z01 High Risk Category
realization phase)
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7. Pre Sales Order Processing
7.1. Overview
You can represent pre-sales business processes in the system using the function of quotations.
Creating and maintaining this kind of data may be useful under, for example, in the following
circumstances:
 you want to evaluate your pre-sales processing with reports and analysis. For example, you
want to compare the value of a quotation against the value of subsequent sales orders and
invoices and then evaluate the effectiveness of your planning process
 or you want to evaluate the success rate of quotation-to-order conversion by sales group
7.2. Quotation Creation

A quotation presents the customer with a legally binding offer for delivering a product or providing a
service within certain fixed conditions. This offer is legally binding for the company within a specified
time period.
The quotation is a sales document type that comes before the sales order and after an inquiry. It is used
as a proposed agreement of a price and quantity for a particular material or service for a particular date.
Most quotations have a validity date.
The quotation is useful in business processes to determine if the material will be available at the right
time for the customer at the right price. Should the quotation be satisfactory it may be copied into a
sales order. Depending on the customizing entries, you can copy the pricing elements and the header
data, as well as the item, material, and order quantities into the sales order.
Features of Quotation
 A customer quotation comprises one or more items that contain the quantity of a material or
service that the customer asked for
 The valid conditions for an item are listed in the item conditions and can be derived individually
from the conditions for the whole document
Overall processing Status

System also provides the facility of checking the overall processing status of a Quotation document at
any given point of time. The status of Quotation document remains Open as long as the document has
not been completely referred into the Sales Order or the validity dates of the quotation has not lapsed.
It changes from Open to Being Processed at the time of first order which is created with the reference
to the quotation.
This functionality of processing status would help the sales staff and the sales department to keep an
on-line track of the Quotations.
Document Flow
Tracking has been made easier through the functionality of Document flow. SAP user can view not
only the list of preceding and subsequent documents (if any) but can also view those documents in
detail using Display transaction, provided he has the necessary authorization.
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Automatic Determination
While creating a Quotation in SAP, the system automatically determines the following and hence
reduces the chances of human error.
 Standard Pricing
 Shipping Point
 Delivering Plant
7.2.1. Quotation Creation Process
BBP-UDPL-SD-006 Quotation Creation process
2
1
Call / Email
Quotation is created
received from Inquiry Creation
on the system
prospect
<Process Name>
3
Create
3.1 Customer
Customer Master Record
Master Not Exists in relevant
Sales Department
account group
3.2 Exists
Inquiry Saved
Quotation Saved
Sent to Customer by
Quotation End
Printout Post / Email
<Process Name>
7.2.1.1. Process Explanation

1. The user will receive a call or written request for a quotation from the customer
2. The user will proceed with the creation of the Quotation in the system, for that,
3. The user will first check whether the customer master data exists in the system or not:
3.1. If the customer master data does not exist in the system, then the user will get it created from
concerned department (please refer to Customer Master creation process Chapter: 05,
Section: 5.3 and Process: BBP-UDPL-SD-002) under relevant Account Group
3.2. If the Customer Master exists, user will proceed to the next step
4. Before and upon saving the document, the user will perform following:
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o the user will enter the customer and material information in the Quotation and the
system will itself determine the price and sales area
o the user will then enter the Quotation validity dates
o system will automatically assign a unique number generated internally to the quotation
document upon saving the document
o the valid conditions for an item are listed in the item conditions and can be derived
individually from the conditions tab
o after saving the Quotation, the user can get the print out of the quotation for approval
and it can be sent to the customer (optional):
 in case of local sales, user can obtain a print of Quotation (optional)
Quotation Input Data

Following is the information entered at Quotation level:
Information Triggers
Document Type Input the relevant Doc. Type for Quotation
Sales Organization Code of Sales Organization
Distribution Channel Code of Distribution Channel
Division Code of Division
Quotation Order Number Internally Generated Number of SAP
Quotation Validity Will be entered Manually
Sold to Party SAP Customer code
Material Number SAP Material code
Material Quantity Quantity of the product
Payment Terms Payment terms will be proposed from Customer Master
Pricing Will be copied from the Pricing / Condition Master
Delivering Plant Will be determined automatically from Customer / Material

Master
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Quotation Document Type Description
ZUQT This order type is used to create quotations for local customers
realization phase)
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8. Contracts
8.1. Definition
Contracts are customer agreements that display when sales materials are sold within a certain time
period. The customer contracts can be created for a certain quantity of a material, UDPL can use
customer contracts in future.
Quantity Contract
A quantity contract is an agreement that your customer will order a certain quantity of a product from
you during a specified period. The contract contains basic quantity and price information, but does not
specify delivery dates or quantities.
Release Orders
The customer fulfils a contract by placing sales orders against it. These sales orders are known as
release orders. When you create a release order, you refer to the relevant contract, and the system
automatically updates the released quantities in the contract. Processing a release order is just like
processing a standard sales order.
8.2. Contract Creation without reference to Quotation
BBP-UDPL-SD-007 Contract Creation process without reference
2
1
Call / Email
received from Inquiry Creation
Contract Creation
Customer
<Process Name>
3
Create
3.1 Customer
Customer Master Record
Master Not Exists in relevant
Sales Department
account group
3.2
Exists
Inquiry Saved
Contact Saved
Contract Sent to Customer by

Printout End
Post
<Process Name>
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8.2.1. Process Explanation
1. The user will receive a call or written request for Contract creation from the customer
2. The user will proceed with the creation of the Contract in the system, for that,
3. The user will first check whether the customer master data exists in the system or not:
3.1. If the customer master data does not exist in the system, then the user will get it created from
the concerned department (please refer to Customer Master creation process Chapter: 05,
Section: 5.3 and Process BBP-UDPL-SD-002) under relevant Account Group
3.2. If the Customer Master exists, proceed to the next step
4. Before and upon saving the document, the user will perform following:
o the user will enter the customer and material information in the Contract and the system
will itself determine the price and sales area
o the user will then enter the Contract’s validity dates
o system will automatically assign a unique number to the contract document upon
saving the document
o the valid conditions for an item are listed in the item conditions and can be derived
individually from the conditions tab
o after saving the contract, the user can get the print out of the contract and it can be
sent to the customer (optional)
Data required for Customer Contracts

The user will enter following information in the contract creation screen:
 Customer number of the Sold-to party

 Customer purchase order number for this document (optional)
 Validity period in the Valid from and Valid to fields
 Material number(s)
 Target quantities for the materials. (The target quantity is the projected total quantity for the
material in the contract)
 The user will then save the contract and system will assign the contract and assign an internally
generated number to it
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8.3. Contract Creation with reference to Quotation
BBP-UDPL-SD-008 Contract Creation process with reference
Quotation
Saved
2
Sales Department
Contract Creation
Inquiry Saved
Contact Saved
Contract Sent to Customer by

Printout End
Post / Email
<Process Name>

1. Quotation is already created, saved and open for referencing in the system (For Quotation Creation,
please refer to Quotation Creation process flow Chapter: 07, Section: 7.2 and Process: BBP-UDPL-
SD-006)
2. Create Contract with reference to the Quotation
3. When the user creates the Contract with reference to Quotation, almost all the information is copied
from the Quotation. The only thing the user has to mention particularly in the Contract are the
Validity Dates as it’s a legal binding between customer and UDPL.
 Following information can be copied from Quotation into the Contract:
o Customer Number
o Material Number and its Quantity (Quantity can be changed in the Contract)
o Pricing
o Delivering Plant
 Upon saving, the unique contract number will be generated internally by the system and
the user can get the print out of the Contract and it can be sent to the customer (optional)
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Release Orders
 The user will create the contract by entering the Contract type and sales area in the initial
contract creation screen
 The user will select ‘Create with Reference’ option, then select the contract tab and then enter
the number of previously created quotation or contract
 User will have the option to generate a selection list to choose from the materials and quantity
and further copy the materials and their specific quantities in to Release order
 User will also have the option to change the quantity before saving the Release order or even
after saving the order in the Change mode but before the creation of the delivery
Checks during Contract Creation

When the Release order is created, the system checks whether:
o the release order is within the contract’s validity period
o the released quantity (in the quantity contract) is not exceeding the remaining open
quantities in the contract
o the user will then save the Release order and system the will update the contract and an
internal number will be assigned to the Release order

Contract Document Type Description
ZUQC This order type is used to raise Quantity contract in the system
for Local Customers
realization phase)
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9. Sales Order Processing
9.1. Sales Order

The sales order is a document between a sales organization and a sold-to party about delivering
products for defined prices, quantities and times. In the sales order, we record the customer number,
the product customer ordered and the delivery date, if necessary. Then the system automatically
proposes data from the relevant master records:
 From the customer master record of the sold-to party, the system proposes sales data such as
internal organizational element assigned to the customer, shipping data such as default
delivering plant, and billing data such as term of payment. In addition, the system copies
customer-specific master data about partners and contact people at the customer site
 For each material in the sales order, the system automatically proposes data from the relevant
material master records, such as availability check, tax determination, weight, volume etc.
Sales Order Creation
You can process sales orders in the SAP system differently, depending on your specific needs. In the
simplest case, you can enter a sales order with several items in a single screen. The system
automatically proposes data from the relevant master records:
Creation of Sales Order without Reference to Quotation/Contract
Customer Master Data
From the customer master record of the sold-to party, the system automatically proposes sales,
shipping, pricing, and billing data. In addition, the system copies customer-specific master data about
sales regions, customer tax classifications and partners.
Material Master Data
For each material in the sales order, the system automatically proposes data from the relevant
material master records, such as data for pricing, availability check, tax determination and weight
and volume determination.
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Creation of Sales Order with Reference to Quotation / Contract
 If you are creating a Sales Order with reference to quotation or contract, then all the required
information for sales order creation will be copied from the preceding document
 The user only has to accept the material and quantities that will be copied from the preceding
document
 You will have the option to change the quantity in the sales order screen or add additional
material other than mentioned in the preceding sales document
 The user then save the sales order an internal number will be assigned to the sales order
Checks at Sales Order Level

Following are the checks that would be carried during Sales Order Creation:
 Credit Check
 Material Availability Check
System will also check the material availability depending on the setting made in the material master.
In case of individual requirement, check will be carried out and when the stock is available that stock
will be going to reserve i.e. soft allocation against the Sales Order.
Changes at Sales Order level
 The data proposed by the system can be used as a basis for your order
 If your sales order processing requires it, you can modify this data manually or add new data
up to a certain limit as allowed by the standard SAP SD practices. For example, your pricing
policy may allow you to manually change the value of certain discounts within a permitted
range. In addition, you can branch in the sales order to a number of different screens where
you can display and modify data, such as terms of payment and delivery plant
Rejection of Sales Order

You can enter a reason for rejection for one or more items in the Sales Order for the items which were
not delivered to the customer due to any reason. These items are then not copied into the subsequent
documents. If you reject an item in a sales document, the system automatically cancels any materials
planning requirements (MRP) previously generated for the item. User will have following options
available while rejecting a sales order:
 Rejecting all items

 Rejecting Individual Items
 Rejecting individual item with different reasons of rejection
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Status Analysis
The system always maintains a status of each sales order. The sales team can use this feature to
answer customer queries on dispatch of his material as well as use to track the progress of the pending
dispatches at their end.
Automatic Determination
While creating an order in SAP, the system automatically determines the following and hence reduces
the chances of human error:
 Standard Pricing
 Ship to Party
 Bill to Party
 Payer
 Inco terms
 Payment Terms
 Shipping Point
 Delivering Plant
Sales Order Input Data

Following Information is entered at the Sales Order Level when created without reference to Quotation
and /or Contract:
Document Type Input the Doc. Type for Order
Sales Organization Code of Sales Organization
Distribution Channel Code of distribution channel
Division Code of division for product group

Sales Order Number Internally Generated Number of SAP
Sales Order Date Current date will be default
Sold to Party Customer code (Entered Manually if the Order is not created
with reference to Quotation and/or Contract)
Ship to Party The ship to party is going to be determined on basis of sold
to party
Sales Type will be configured under POLICY RATE
‘Order Reason’ which will be available SPECIAL RATE
at the Sales Order* NET RATE

FREE UNIT
RATE DIFFERENCE
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Material Number Entered Manually (if the Order is not created with reference
to Quotation and/or Contract)
Material Quantity Required quantity of the material
Pricing Pricing will be determined automatically
Payment Terms Payment terms will be proposed from Customer Master
Customer Sales Tax Information Proposed from Customer Master
Material Sales Tax Information Proposed from Material Master
Tax Rate(s) Proposed from the Pricing Condition Record(s)
Pricing Date Current date will be default
Delivering Plant Will be determined automatically from Customer / Material
Master
*These Order Reasons were created with the information received on 19 th April, 2018 received via
email.
RE Project
Task.msg
realization phase)
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9.2. Sales to Credit Customer with or without reference
BBP-UDPL-SD-009 Sales to Credit Customer with or without Reference
4
2 2.1
Sales Department
1
Create Sales Order
with or without Yes
Start reference to Sales Order Saved with open for End
Credit Status
Contract / Quotation Delivery
(optional)
<Process Name> No
<Process Name>
2.2
Finance Department
4
3
3.2
Approved
Approval Decision
Sales Order Saved with Credit
Sales Order blocked for Release status
delivery
Rejected
3.1

1. Create Sales / Release order with or without reference to Contract or Quotation
2. Credit management will be activated on relevant customers which are maintained in the Credit
Master as a credit customer:
2.1. If the credit status is cleared, Sales Order will be saved and will be open for delivery
2.2. If the credit status is not cleared, Sales Order will be saved but will be Blocked for delivery
3. Once the Sales Order is blocked for delivery, Finance Department will be making decision on
the blocked Sales Order:
3.1. If the credit is not approved, process will end till payment is received in the system
3.2. If the credit is approved, Finance Department will release the Sales Order
4. Once the Sales Order is released and approved, Sales Order will be available and open for
delivery
Checks during Contract Release Order
 If the user creates the Sales / Release order with reference to the Quotation and / or Contract,
the system checks whether the release order is within the Contract’s / Quotation validity period
 The released quantity (in the quantity contract) does not exceeds the remaining open quantities
in the contract
 The user will then save the Release order and system will update the Contract / Quotation with
relevant consumed quantity and an internal number will be assigned to the Release order
 The user can now take the print of the sales order (optional)
Note: Here release order is considered, referred and termed as the Sales Order.
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9.3. Sales to BG Customer with or without reference
BBP-UDPL-SD-010 Sales to BG Customer with or without reference
4
Start 5
Create Sales Order
Sales Department
with or without
<Process Name> reference to
Quotation/Contract Sales Order Saved with open for End
and assign Finance Delivery
Document Number in
the Sales Order
<Process Name>
1 2
3
Finance Department
Bank Guarantee
Received from Bank Guarantee Saved and Financial
Enter Bank
Customer Document Number Generated
Guarantee Details

1. Finance Department receives Financial Document details (Bank Guarantee) which is sent by
the Customer
2. Finance Department enters Bank Guarantee details in the system
3. Upon saving, system assigns a unique number to the Financial Document entered in the system
4. Sales Department creates Sales / Release Order with reference or without reference to
Quotation / Contract and assigns the Bank Guarantee’s financial document system generated
number into the Sales Order
5. Save the sales order and same will be open for delivery and a unique number will be generated
internally by the system
 When the user creates the Release order, the system check whether the release order is within
the contract’s / Quotation validity period
 the released quantity (in the quantity contract) does not exceeds the remaining open quantities
in the contract
 The user will then save the Release order and system will update the Contract / Quotation
quantities and an internal number will be assigned to the Release order
 The user can now take the print of the order (optional)
Note: Here release order is considered, referred and termed as the Sales Order.
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9.4. Sales to Advance Customer with or without reference
BBP-UDPL-SD-011 Sales to Advance Customer with or without reference
4
5
Sales Department
Create Sales Order

with or without Sales Order Saved with open for
Start End
reference to Delivery
Quotation/Contract
<Process Name> <Process Name>
1 2 3
Finance Department
Payment Instrument Enter Advance

received from
Customer
payment in FI Advance Payment Document is
module
posted and saved

1. Advance Payment instrument is received in Finance Department which is sent by the customer
2. Finance Department enters the Advance payment and relevant details in FI module (Please
refer to FI-AR’s Business Blue Print document: BBP_UDPL_FI_Ver2.0 section: 5.4.1.1. and
process: BBP-UDPL-FI-016 for advance receipt process)
3. Advance payment is entered in the system and system generates a posting document number
4. Create Sales Order with or without reference to Quotation / Contract
5. Sales Order is open for delivery
 When the Sales / Release order is created in the system, systems checks whether the release
order is within the contract’s / Quotation validity period
 the released quantity (in the quantity contract) does not exceeds the remaining open quantities
in the contract
 The user will then save the Release order and system will update the Contract / Quotation
quantities and an internal number will be assigned to the Release order
 The user can now take the print of the order
Note: Here release order is termed and considered as Sales Order.
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9.5. Scrap Sales
BBP-UDPL-SD-012 Scrap Sales
Finance Department
Start
1 5
Stock Report 3 Accounting Entries for
2 4
Delivery Document COGS
Order Creation Post Goods Issue
Creation
6
Delivery Note Invoice Creation
Sales Tax Invoice
7
Accounting Entries for
A/R
End

1. Finance Department checks the scrap stock before proceeding to create Sales Order in the
system for the sale of scrap
2. If the stock is available, Sales Order is created and a unique number is generated internally by
the system
3. Nominated personnel create a delivery document and a delivery note can be printed at this
stage
4. Once the picking and loading activity is finalized, designated personnel will perform Post Goods
Issue
5. Once the PGI is done, relevant entries will be posted in the system
6. Once the PGI is done, nominated personnel will create invoice / billing document and the
printout can be obtained at this stage which can serve as Sales Tax invoice
7. Accounting entries in FI-AR will be posted upon saving of Billing Document
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10. Claims Processing
10.1. Overview
Credit or Debit Memo is a document created at the system on the basis of a customer
complaint/customer claim and correction process for any error on the invoiced transaction. Credit Memo
reduces receivables in Financial Accounting; meanwhile Debit Memo increases receivables in Financial
Accounting. Prior to precede Credit or Debit Memo, a request will be created as reference document
for billing.
If there’s a claim from the customer regarding the quality of the goods received, customer can claim for
the credit memo. Based on on-site inspection and customer’s claim authenticity, credit memo can be
given to the Customer.
If the customer was under charged at the time of creation of Sales Order, debit memo can be issued to
update Customer’s ledger.
10.2. Process Description
10.2.1. Credit Note Request

 Credit Note request can be created in case of sales return or for dealer incentives as well
 System will assign an internally generated number to each Credit Note Request and Credit
Note
 For every customer a unique code will be used to identify the customer
 Reasons of credit note can be maintained in system
 In case of Credit memo request created with reference to Invoice, pricing will be replicated from
the invoice
 Credit memo request and subsequent credit notes can also be created without reference to any
invoice
 In case of returns, the credit note request will be created with reference to the original Invoice.
The pricing and the quantity will be replicated from the returns document (which in turn was
replicated from Invoice)
 Current date will be default for credit note date/request date
 Sold to party code will be copied from the reference document
 Sold to party name will be copied from the Master Data
 Material Number will be copied from the reference document
 Material Description will be copied from the Master Data
 Material quantity will be copied from the reference document
 Pricing will be copied from the reference document
 Division will be copied from the reference document
 Customer Sales Tax information will be copied from the reference document
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 Material Sales Tax information will be copied from the reference document
 Currency will be copied from reference document
10.2.2. Debit Note Request

 The information can be replicated in Debit note request from invoice / billing document
 When debit note request will be created and debit note issued, the status of the sales order will
also list that for this sales order, debit note request and/or debit note also exists
 Debit Note Number/Request Number will be an internally generated number of SAP
 Current date will be default for debit note date/request date
 Sold to party code will be copied from the reference document
 Sold to party name will be copied from Master Data
 Material Number will be copied from the reference document
 Material description will be copied from the Master Data
 Material Quantity will be copied from the reference document
 Pricing will be copied from the reference document
 Division will be copied from the reference document
 Customer Sales Tax information will be copied from the reference document
 Material Sales Tax information will be copied from the reference document
 Currency will be copied from the reference document
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10.3. Debit / Credit Memo Generation
BBP-UDPL-SD-013 Credit / Debit Note Creation
Sales Department
1
Create Credit /
Start
Debit Memo with
or without
reference to
Invoice
Finance Department
3
No 2 Credit Note
Remove Billing Block for Yes Creation
End Credit Note Approval
4
Accounting Entries
for A/R

1. Sales Department will create Credit / Debit memo with or without reference to Billing document
2. Based on Finance Department’s decision, Credit / Debit memo is either:
a. Not approved, process will end and the debit / credit memo will stay on the system with
a billing block
b. If the credit / debit memo is approved, billing block will be removed
3. Once the billing block is removed, credit / debit note can be generated
4. Upon saving, relevant accounting entries will be updated in FI-A/R
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11. Claims Processing – Sales Returns
11.1. Overview
Return processes are incorporated in the industry where goods issued/sold to the customer are returned
by him. So documents are to be generated to maintain the return processes of a product. Inventories
are updated again and account receivable will be reducing accordingly.
SAP standard suggests that return document is to be generated with reference to the invoice. So that
proper record keeping can be managed.
11.2. Process Description

Reasons of Sales Returns
Following can be, but not limited to, the reasons of Sales Returns:
1. Transit Loss
2. Damage
3. Processing Fault
4. Low Quality
5. Improper Packing
6. Wrong Material
7. Wrong order by customer
8. Wrong Dispatch by UDPL
9. Delivered product which was near to expiry
10. Slow movement of product at dealer / distributor causing product to reach near expiry
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11.3. Claims Processing - Returns
BBP-UDPL-SD-014 Sales Returns
Finance Department
Start 1 2 6
3
Returns Order Returns Delivery Credit Note
Post Goods Receipt
Creation Creation Creation
7
No 5
Yes Accounting Entries End
End Remove Block for Credit for A/R
Note Approval
Returns Storage
4
Returns are
Location
received in Returns
Storage location

1. Finance Department creates Returns Order with or without reference to Billing document
2. Creates a returns delivery with reference to returns order
3. Perform Post Goods Receipt
4. The stock will be placed in the returns goods storage location
5. Remove billing block from returns order in order to proceed with the credit memo / returns
invoice creation:
a. If the block is not removed or customer claim of returns is not approved, no credit memo
will be generated
b. If the block is removed by the designated personnel, proceed to the next step
6. Proceed with the creation of Returns Invoice / Credit note in the system
7. Relevant accounting entries in FI-AR will be posted
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11.4. Reversal / Diversion
NA
11.4.1. Overview
At UDPL, there can be a scenario where the goods are dispatched and the invoice is generated in the
system and after that UDPL came to know that the consignee / sold to party / ship to party has either
refused to receive the goods / delivery or a particular product is not moving fast at a particular dealer
and if nothing is done at the right time, it might reach its expiry date. Process will be that the goods are
diverted to another customer. User at UDPL will cancel the invoice, reverse the goods movement and
after that close the sales order by assigning the appropriate reason of rejection.
The process will continue, and transaction will be processed with a new sales order for the new
customer for the diverted goods, rest of the process will remain same till invoice creation.
11.4.2. Diversion Order / Sales

N/A

Following Sales Order types will be configured for UDPL:
Sales Order Description

Types
ZULS Local Sales Order – Dealer with or without reference to Contract and/or Quotation
ZUFS Local Sales Order – Farmers with or without reference to Contract and/or
Quotation
ZUIS Local Sales Order – Institutions with or without reference to Contract and/or
Quotation
ZURE Dealer Returns Order – with or without reference to Billing Document
ZURF Farmer Returns Order – with or without reference to Billing Document
ZURI Institution Returns Order – with or without reference to Billing Document
ZUCR Credit Memo Request– with or without reference to Billing Document
ZUDR Debit Memo Request – with or without reference to Billing Document
ZUSS Scrap Sales – with or without reference to Contract and/or Quotation
11.6. Outputs / Printouts

N/A in case of UDPL
realization phase)
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12. Shipping Process
12.1. Delivery Order Creation

The delivery order will be created with reference to the sales order. The user can also view the orders
to be delivered from SAP standard report(s).
Prerequisites for Delivery Order Creation
There are some prerequisites for creating a delivery order:
 The sales order should not be blocked (Sales order can be blocked due to Manual or Automated
Delivery Block at header or item level)
 Credit Management Block is not activated on the Sales Order
 The schedule line is due for delivery i.e. sales order is due for delivery or any line item is due
for delivery
 Sufficient stock is available in the relevant warehouse
Delivery Order Creation Method
User will have the option to create the delivery order with following options:
o Single Delivery
o Partial Delivery
o Combined Delivery (combining sales orders created for the same shipping point, ship
to party and having same delivery date)
 At UDPL, outbound delivery will be created with reference to the sales order
 User will have the option to deliver only selected line item of the sales order
 Once the user copies the item of the sales order into delivery now next step is to save the
delivery order or change the quantity, if required
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12.2. Delivery Creation Process
BBP-UDPL-SD-016 Local Sales – Delivery / Dispatch
Sales / Dispatch Department
Start
1 5
Stock Report 3 Accounting Entries for
2 4
Delivery Document COGS
Order Creation Post Goods Issue
Creation
Delivery Note
6
Invoice Creation
Sales Tax Invoice
7
Accounting Entries for
A/R
End

1. Stock report will be executed for available finished goods stock
2. Sales Order will be created
3. Delivery document will be created with reference to Sales Order:
 Print out of Delivery Note can be generated
4. Post goods issue
5. Accounting entries will be generated for COGS
6. Invoice will be created
 Print out of Sales Tax Invoice will be generated
7. Accounting entries will be generated for Accounts receivable
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Post Good Issue Process
 By saving the delivery order, there will be no impact at stock levels. Stock level will be adjusted
/ updated by executing Posting Goods Issue for the Delivery order
 To post the goods issue, user will select the same delivery number and then select the Post
Good Issue in the delivery order screen
Effects of Post Goods Issue
By posting the delivery for PGI, the following stock effects will be taken in SAP:
o Warehouse stock of the material is reduced by the delivery quantity

o Value changes are posted to the balance sheet account in inventory accounting
o Requirements are reduced by the delivery quantity
o Goods issue posting is automatically recorded in the document flow
o Work list for billing will be updated
o The delivery order will be closed automatically upon selecting the post good issue
option and the status of the delivery document will be updated
o Once the Post Goods Issue has been done, following effects will be transferred in the
FICO module:
 Cost of goods sold will be recorded with the Standard Price
 Stock will be updated with the Standard Price

Delivery Document Types Description
ZULS Outbound Delivery – Local Sales Dealer
ZUFS Outbound Delivery – Local Sales Farmer
ZUIS Outbound Delivery – Local Sales Institution
ZUSS Outbound Delivery – Scrap Sales
ZULR Returns Delivery - Dealers
ZURF Returns Delivery – Dealers – Farmers
ZURI Returns Delivery - Institution
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12.4. Output / Printouts
Output Types Description
ZUDC Print out of the Delivery Challan
ZURE Print out of the Returns Delivery
realization phase)
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13. Billing Invoice
13.1. Overview
Billing represents the final processing stage for a business transaction in Sales and Distribution module.
Information on billing is available at every stage of order processing and delivery processing. Billing
component includes creation of invoice on the basis of either sales order or delivery for complete or
partial delivery quantities. At UDPL, all billing will be done with reference to the Delivery Document.
Billing Document
A sales document used to bill a customer for a goods delivery. Deliveries which are carried out on the
basis of sales orders are invoiced to the customer. If no complaints are made about the delivery, the
business transaction is considered complete from the sales point of view.
Billing document can only be created with reference to either delivery document or sales order.
Creation of Billing Document

At UDPL, billing will be carried out with reference to the Delivery quantities of the Finished Goods
dispatched to the customer i.e. Delivery related Billing.
There are two ways to initiate Invoice processing which are as follows;
 Individual Creation: Invoice can be created individually against each delivery order
 Billing Due List: Multiple invoices can be created at once through a Billing Due list which will list
all deliveries for which invoice is yet to be created
Billing Document Cancellation/ Reversal

Reversal of billing document can be done in the system in case of an erroneous entry.
In case of a returns/claim from the customer, a credit note will be generated in the system to adjust the
receivable amount.
Automatic Updating of General Ledger & Reports

Once the Billing document has been created, the system would cater for automatic updating of the
Account Receivable ledgers. In addition to this, all the reports, which are relevant to Sales and
Receivables, would also be updated.
Document Flow
Tracking has been made easier through Document flow. SAP user can view not only the list of
preceding and subsequent documents (if any) but can also view those documents, provided they have
the necessary authorization.
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13.2. Process Flow Billing Process
BBP-UDPL-SD-017 Billing Process
1
Sales / Dispatch
Delivery
Delivery OrderOrder
Saved
Saved
Department
2 Post Goods Issues

Delivery Note
Post Goods Issue
Accounts Recieveable
Creation of Billing Accounting Entry in FI

Document with
reference to Delivery
Order
Sales Tax
Invoice

1. In order to proceed with the Delivery related billing, Delivery document for which billing is required
to be carried out should be saved in the system
2. Not only delivery document should be saved but also the Post Goods Issue should also be executed
for the required delivery document which is required to be billed
3. Create Billing document with reference to delivery document and Accounting entries in FI - AR will
be recorded and customer ledger will be updated accordingly:
 at this stage, Sales Tax invoice printout for local customer(s) can be obtained
Billing Document Creation Options
User will have the option of creating the billing documents in following ways:
o by processing manually from a work list

o by creating a billing document explicitly
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Invoice Settlement Options
User will have the option to settle the delivery order in following ways:
 By combining several SD documents into a collective billing document if Payer, destination

country and billing date are same
 By billing one or more SD documents with several billing documents (this is called an invoice
split e.g. different Payer)
 By creating an individual billing document for every sales document in case of Order related
billing and every delivery document for delivery related billing
 As in case of Delivery Related Billing, the pre requisite in this case is that the post good issue
must be done against the delivery order
 In case of Delivery related billing, the user will only have to enter the delivery order number in
the creation screen provided if he is creating an individual invoice and press Enter or execution
button, all the details will be copied from delivery document
 In case of Order related billing, the user will only have to enter the sales order number in the
creation screen if the user is creating an individual billing document and once he presses Enter
or an execution button, all the details will be copied from the sales order
 Once the billing document is saved an internal number will be generated and assigned to the
billing document
 Now if the user wants to change the invoice he has to cancel the invoice and then generate a
new invoice for the same sales / delivery order
 System will keep the track of both cancelled and new invoice as well
 SAP’s internally generated billing document number will serve and will be basis for Sales Tax
invoice number
 Upon saving the Sales invoice, a financial document will be created automatically at the
backend in Financial and Controlling (FICO) module provided that no requirement of Posting
Block is applied on the request of the business
 The financial document created will have the reference of sales billing document as well so
tracking will not be an issue
 The financial effect of the sales invoice will be as follows:
o Sales and Revenues will be credited along with output tax
o Customer and all Expenses in form of discount or freight will be debited
 Sales process is completed once the billing document is generated; now the Financials module
will receive / post the incoming payment for the invoice / billing document
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Invoice Data
The following information is maintained in the INVOICE
Information Required Triggers
Invoice Number Internally Generated Number of SAP

Invoice Date Current date will be default
Sold to Party Code Customer Code will be copied from the Sales Order
Bill to Party Code Bill to party will be copied from Sales Order (Same as Sold to
Party)
Payer Code Payer will be copied from Sales Order (Same as Sold to Party)
Material Number Will be copied from Delivery Document
Material Description Will be copied from Delivery Document
Material Quantity Will be copied from Delivery Document
Division Will be copied from Sales Order
Customer Sales Tax Will be copied from Sales Order
Information
Material Sales Tax Will be copied from Sales Order
Information
Currency Will be copied from Sales Order

Billing Document Description
Types
ZULS Sales Tax Invoice – Local Dealer Sales
ZUFS Sales Tax Invoice – Local Farmer Sales
ZUIS Sales Tax Invoice – Local Institutional Sales
ZUSC Sales Tax Invoice – Local Scrap Sales
ZUS1 Invoice Cancellation
ZURE Returns Invoice – Local Dealer Sales
ZURF Returns Invoice – Local Farmer Sales
ZURI Returns Invoice – Institutional Sales
Credit Memo
ZUG2
Debit Memo
ZUL2
Credit Note cancellation
ZUS2
13.4. Output / Print out

Output Type Description
ZUST Print out of the Invoice / Sales Tax Invoice
ZUCN Print out of the Credit Note
ZUDN Print out of the Debit Note
ZUSR Print out of the Sales Returns
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14. Cancellation
14.1. Overview
Reversal of the delivery cannot be created in the system if a subsequent document is created against
that dispatch note e.g. Billing Document. This means that if a dispatch note has to be reversed, the
billing document for that dispatch note must be cancelled first in the system in order to allow the reversal
of Post Goods Issue (PGI) and then the dispatch note.
realization phase)
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15. Financial Document Management
15.1. Overview
Letter of credit or a Bank Guarantee is a legally negotiable document issued by a bank at the request
of a Customer. The letter of credit / bank guarantee ensures the financial stability of the Customer to
pay for the goods by substituting the credit of a bank.
Standard Business Flow for the Letter of Credit
15.2. Process Overview

1. A customer contacts UDPL for the purchase of goods
2. UDPL asks the customer that UDPL requires a financial document for this transaction in order
to secure the credit
3. The customer will then apply for a financial document with its bank
4. Once the Financial document i.e. Bank Guarantee is received. User will create a master record
for this financial document in the system
5. User will create the sales order for this transaction and assign the financial document at the
header of the sales order
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6. User can assign the financial document wither to the entire sales order or on to the selected
items in the order
7. The system will check the sales order to ensure that it complies with the financial document’s
terms. For example, the system checks that the sales order’s value does not exceed the
financial document’s value.
 If there are discrepancies between the sales order and the financial document, the system
blocks the sales order. Authorized users may release this block using the Credit
Management component
 If there are no discrepancies, the system updates the financial document master with the
sales order amount
8. User will create the delivery for this transaction and the system copies the financial document
information from the sales order to the delivery. The financial document applies to the entire
delivery
9. When you post the billing document, the system will update the financial document master
record with the invoice amount
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16. List of Standard Reports
T Codes Description
VCUST Customer List
V/LD Price List (Condition types)
FD24 Display Changes
FDK43 Credit Management: Master data list
VA15 / VA15N List of Inquiries
VA25 / VA25N List of Quotations
VA05 / VA05N List of Sales Orders
VA45 / VA45N List of Contracts
SDQ1 Expiring Quotations
SDQ2 Expired Quotations
SDQ3 Completed Quotations
VD04 Customer Changes (SD)
XD04 Customer Changes (Centrally)
OV51 Display of Changes to Customers
OV50 Customer Master Data for Comparison
SDV1 Expiring Contracts
SDV2 Expired Contracts
SDV3 Completed Contracts
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T Codes Description
VL06O Outbound Delivery Monitor
FBL5N Accounts view of customers
VF04 Maintain Billing Due List
VFX3 Release Billing Document to

Accounting
VF05/VF05N List of Billing documents
MMBE Stock view
VD59 List of Customer Material Information
MM60 Materials List
MB51 Material Document List
MB52 Display Warehouse Stock of Material
VKM3 Sales Document (Credit check)
F.35 Credit Master Sheet
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17. RICEF
Existing Output / Print out formats were shared with UDPL via email on 12 April 2018.
Searle's Printouts
.msg
Following is list of Reports and Output formats which are pertaining to specifically Sales & Distribution
module only which were shared during the BBP discussions back in 2016. As for reports, it is not
necessary that all the shared reports will be developed in the SAP system through ABAP provided if
the requirements highlighted can be catered through standard reports provided by the SAP.
Rationalization whether the below mentioned shared reports will either be developed / customized in
SAP or will be catered through standard will be finalized further during the reports rationalization
workshop.
17.1. Reports
S. No. Shared Reports Description
1. Customer Ledger Summary
2. Product Ledger (Customer)
3. Product wise Sales Summary
4. Sales Summary
5. SO wise Customer Summary
17.2. Outputs
S. No. Shared Outputs Description
1. Credit Note
2. Delivery Challan
3. Debit Note
4. Invoice
5. S. Return
realization phase)
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SAP ECC. 6.

Copyright © 2018 IBL. All rights reserved.

01 16-04-2018 Changes Highligted in Green Shoaib Ahmed

Mr. Sohail Hasnain Head of Finance – UDPL

Name/ Title Signature

Mr. Sohail Hasnain

The following describes the symbols used in the process map:

This is the normal step in

This indicates that there

This indicates that there

This is a decision step

This indicates that there

This indicates an This indicates a data file

Cost of Goods Sold COGS

Enterprise Resource Planning ERP

Inco terms International Chamber of Commerce terms

Post Goods Issue PGI

Post Goods Receipt PGR

Sales and distribution SD

Reports, Interfaces, Customizations, RICEF

International Brands Limited IBL

United Distributors Pakistan Limited UDPL

Following organizational units represents Sales and Distribution module:

 Company Code (Finance Module)

4.1.1. Sales Area

Organizational Elements for Sales Area

Organizational Elements Definitions

Distribution Channel The distribution channel represents the

Division Represents the product line

4.1.2. Configuration Requirement

4.1.2.1. Sales Organization

The Sales Organization will be assigned to its relevant Company Code.

Code Description Definition

The sales organization within

Code Distribution Channel

90 Others / Misc. Sales

00* Cross Division applicable for ALL divisions

1. Distribution Channel: 04 – Institutional Sales

Division Customer - Division

Following sales areas will be available in SAP for UDPL:

1. Distribution Channel: 04 – Institutional Sales

4.1.2.6. Storage Locations

Please refer to Materials Management’s (MM) Business Blueprint Addendum

4.1.2.7. Shipping Point

Company UDPL SAP UDPL SAP Shipping SAP

United Distributors Pakistan Limited Sales & Distribution Organizational Structure

SD is responsible for the creation and maintenance of the following data:

5.2. Customer Master Data

The customer master data has three views:

5.2.1. General Data

NTN Customer NTN (XXX-XXXX)

STRN Customer STRN (XXX-XXXX-XX)

CNIC Customer CNIC (XXXXX-XXXXXX-X)

5.2.3. Sales Area Data

S. No UDPL’s Sales Field mapping in SAP No. Of

1 Region (Province) Sales District 06

2 Branch Sales Office 04

3 Area (Territory) Sales Group 03

Sales District Description

Sales Offices Description

001 Karachi 2001 Karachi

058 Pishine 2005 Quetta

(above will be rationalized further during realization phase)