32351705 dilip-sadh-sales-distribution-overview

Dilip Sadh

SAP R/3 Training

Sales to cash overview – from Contract to

Invoice

AGENDA

• Targets of the training

• Organizational elements in sales

• Master Data in sales

• The sales process - overview

• Contracts and sales orders

• Deliveries, picking and goods issue

• Billing

Targets of the training Dilip Sadh

• To show you how to work with SAP R/3.

• To show you the most important, most need and basic functionalities of SAP R/3.

• To show you how processes are represented in SAP R/3.

• We are not going to show you special Q8 processes and functionalities.

• The training is set up on a general CGEY’s SAP Oil &Gas trainings system and therefore e.g. no Q8 specific customer or material mater data are used.

• CGEY’s SAP Oil & Gas trainings system represents one possible but practice-proven solution how to run oil and gas business.

• Organizational elements in sales

– Sales area

Sales organization

Distribution channel

Division

The sales office organization

– Plant

– Shipping point

Organizational elements in sales Dilip Sadh

Sales area

•A combination of sales organization, distribution channel and

division.

•All data relevant for sales can be defined per sales area, e.g. master data,

sales documents,etc.

•Generally analyses are carried out per sales area. They can be used as

selection criteria.

•Sales areas are adapted to company codes. A company code represents a

legal entity for which internal and external reporting is carried out (a

balance sheet and P&L are required).

•Sales Areas can be defined for any combination of sales organization,

distribution channel, and division.

Organizational elements in sales

Sales organization

•The sales organization is the selling unit in the legal sense.

•Responsible, e.g. for product liability and other recourse claims

made by customers.

•Regional subdividing of the market can also be carried out by

means of sales organizations.

•Each business transaction is processed within it.

•It is assigned to a company code where sales revenues are recognized in the chart of account.

•It is required to have at least one sales organization per company code.

•It is the highest summation level for sales statistics.


Distribution channel

•Distribution channel

•Within a sales organization a customer can be supplied through

several distribution channels.

•The distribution channel is the unit through which saleable

materials or services reach the customers.

•Typical distribution channels are, for example, wholesale trade,

retail trade, industrial customers or direct sales from plant.

•The distribution channel is assigned to one or more sales

organizations.


The Division

•Division

•The Division is used primarily to split the organization by product

e.g. Fuel, Lubes.

•Together with the sales organizations and Distribution Channel, the

Division stores it’s own master data for customers, materials and

pricing.

•For every division you can make customer-specific agreements on,

for example, partial deliveries, pricing and terms of payment.

•Within a division you can carry out statistical analyses or set up

separate marketing.


Overview

10

10

Sales

organization

Sales

channel

Division

800

1000 2000 3000

10

0201010201 03

Company code

SALES

AREAS

201020


The sales office organization

•The sales office structure reflects the organizational hierarchy

responsible for sale and comprises of the following entities…

•Sales office

•Sales group

•Sales employee

•The use of the sales office structure in SAP is optional.

•As oppose to the sales organizational structure, the sales office

structure does not impact the structure of master data nor the pricing

functionality.


The sales office / The sales group

•The sales office

•A sales office typically has a physical address but can also be a logical

unit.

•The sales office is assigned to one or more sales areas. Sales employees

are assigned to a sales office.

•The sales office acts as a selection criterion for lists of sales documents.

• The sales group

•The sales group is a cross sales office subdivision of the sales office.

•The sales group is assigned to one or more sales offices.

•Sales employees are assigned to a sales group.

•The sales group acts as a selection criterion for lists of sales documents.


The sales employee

•The sales employee processes business transactions within the

company.

•The sales employee is assigned to a sales organization, a sales

office and a sales group.

•The sales employee can be linked to the customer master data and

sales documents.


Plant and Shipping points

•Plant

•Originally an organizational element out of Materials Management where

materials are produced and / or are stored.

•In customizing, plants are assessed to company code and to sales

organization.

•A plant can be assessed to more than one sales organization, but never

can be assessed to more then one company code.

•Shipping point

•Is responsible for scheduling and processing deliveries to customers, as

well as replenishment deliveries to your own warehouses.

•A delivery is always carried out by one shipping point only.

• Shipping points are defined dependant from: the delivering plant, the type

of shipping (e.g. train, truck) and the loading equipment necessary.


Plant assingnment

plant 4 plant 5

SO 3

Company Code 2

plant 1 plant 2 plant 3

SO 1 SO 2

Company code 1

SO 3

• Master data in sales

– Overview customer and material master data

– Customer master data

Customer partner functions

Account groups

Organizational levels

– Material master data

General data

Sales data

Master data in sales

Overview customer and material master data I

Customer

Material

ProductsServices

Ship-to party

Payer

Sold-to party

Bill-to party


Overview customer and material master data II

•Master data are time-stably data.

•The integration of all customer and material data in a single

database objects eliminates redundant data storage. Areas such as

order processing, delivery, invoicing, purchasing, inventory

management, etc. can all use the same data.

•A single, correct and complete customer master record reduces

data entry and potential errors for order, delivery and invoice

processing.


Customer master data – partner functions I

Business

partners

Sold-to

party

Ship-to

party

Payer

Bill-to

party

Others


Customer master data – partner functions II

•Have to be created for all business partners. Standard Business

partners in sales and distribution are defined as sold to party, ship-to

party, payer and bill-to party.

•Sold-to Party:

For the sold-to party, data on sales is necessary. In many cases, the

company which places an order for the delivery of goods or the rendering

of services is at the same time ship-to party, payer and bill-to party. For

this reason the function sold-to party includes all these other functions.

•Ship-to Party:

For the ship-to party only data required for shipping is necessary (for

example, unloading point and goods receiving hours).


Customer master data – partner functions III

•Payer:

A payer is a company or person who settles the invoices for delivered

goods or rendered services. For the payer data on billing schedules and

bank data is necessary.

• Bill-to Party:

For the bill-to party the address is required as well as data on output and

possibly data on electronic communication.

•Other:

Other partners can be created e.g. one time customer, sales employee etc.

Others

Payer

Bill-to

party


Customer master data – account groups I

Ship-to

party

Possible partner functions

Account groups

Ship-to party (0002)

Sold-to

party

Bill-to party (0004)

Sold-to party (0001)

Payer (0003)

Other (000X)


Customer master data – account groups II

•The account group ensures that for the different partner functions of

a customer only the necessary screens and fields are displayed for

input in master data.

•Therefore different partner functions can have different account

groups, e.g. one account group for the sold-to party and one for the

ship-to party.

•The account group also controls which partner functions the

customer can transfer into a document.


Customer master data – organizational levels I

Client Level Company Level

Credit control AreaSales Area Level

Customer

General data:

- address

- marketing

.....

Financial data:

- account mgmt

- payment trans

.....

Credit mgnt:

- credit status

- credit limit

.....

Finance module

Sales and dist.

data:

- sales, shipping

- billing, output

.....


Customer master data – organizational levels II

•Customer data is important for both - accounting department and

sales and distribution department.

•To avoid data redundancy, accounting data and sales and

distribution data is stored in one master record but at different

organizational levels.

•Data at client level (general data)

– General data, like address and telephone number, etc., is maintained

for every customer.

– General data are identified only by the customer number, not by

company code or sales area.


Customer master data – organizational levels III

• Data at sales area level

– Sales and distribution data is of interest for the sales and distribution

department, e.g. data on pricing or shipping.

– Data only applies to one sales area, and therefore is dependent on the

sales structure (sales organization, distribution channel and division).

– One customer can be defined for more then one sales structure.


Customer master data – organizational levels IV

• Company level

– Company code data is of interest for the accounting department. It

includes, for example, information on insurance or account

management.

– This data applies to only one company code.

• Data at credit control area level

– Credit management data is maintained in a separate view of the

customer master, at the credit control area level.

– A credit control area is defined for one or more company codes. Credit

management data is important for credit limit checking in sales order

processing.


Material master data – general data and sales data I

General data

Sales spec.

data

Data depending on

Sales area / organization Plant specific


Material master data – general data and sales data II

•Some material data is valid at all organizational levels, while other

data is valid only at certain levels.

•In sales especially plant-specific material data and data on sales area

and sales organization level is important.

•Data on plant level:

All data that is valid for a particular plant, as well as for the storage

locations.

•Data on sales organization level:

All material data relevant to sales is stored at sales organization level. This

includes, for example, grouping terms such as account assignment group

and pricing reference material.

• The sales process

– Overview

Process sales out of own stock

Process sales out of third-party stock

– Sales documents

Structure of sales document

Views in sales document

Sources of data in sales document

– Document flow

The sales process

Overview I – own stock

SAP

FIGoods

issue Invoice

Standard

Order

creation CO

Availability

check

Delivery

Creation

Re-

scheduling

Re-

schedule

delivery

date and

change

sales

order

Shipment

planning

Shipment

planningDelivery

condition

transpotation

Delivery

condition

pick up

Contract

materialmd

customermd

The sales process

Overview II – third-party stock

SAP

FIBilling

ReleaseBilling

MM Purchase

Requisition

Purchase

Order

Goods

Receipt

Invoice

Verification

Invoice

CO

Standard

Order

creationContract

customermd

materialmd

The sales process

Sales document – structure of sales document

Head

Item 1

Item 2

Schedule line 1

Schedule line 1

Schedule line 2

Data valid for the whole document, e.g. Sales data,

conditions

Data just valid for the item, e.g. Sales data, conditions

Data relevante for shipping and supply (delivery time and

delivery quantity)

The sales process

Sales document – view of sales document

Overview Details

Head

Item

Schedule line

On header

level

On item

level

The sales process

Sales document – sources of data in sales document

Data out of

Master data

By system

determined data

Data out of

Former documents

Head

Item 1

Item 2

Scedule line 1

Scedule line 2

The sales process

Sales document – document flow I

ContractSales order

Delivery Invoice

DeliveryRetoure Creditnote

Documentflow in sales order

Contract. Sales order.. Delivery... Invoice.. Retoure... Retoure delivery.... Credit note

The sales process

Sales document – document flow II

•A business process is an order of process steps. In SAP each step is

represented in a document. Process chains are described in the

document flows.

•Document flows exist on document level and on item level.

•In document flow for each document a status is listed, e.g. for sales

orders the delivery status; for deliveries the picking status and

invoice status.

• Contract and sales order entry

– Contract and sales order document types

– The Contract

– The sales order

– Data in contract and sales order

Determination of plant

Determination of shipping point

Availability check

Contract and sales order entry

•Several standard SAP document types exist. These document types

can be completed by defining special document types.

•Via the document type several functions can be activated, e.g. price

calculation, availability check, credit limit check, etc.

•Document types have to be linked to sales areas.

Contract and sales order document types – overview I


•Mainly two kinds of standard SAP contracts exist.

•Quantity contracts:

– Defined quantity in a defined period of time.

– No special defined order and delivery dates or quantities.

•Scheduling assignments:

– Clearly defined order quantity and time.

•EXTRA: Special Oil contracts are Spot and Term contracts.

•Spot contract: generally short period of validity (one month)

•Term contract: generally long period of validity (one year)

•In addition to standard contract an oil contract has an quantity

schedule. Call-off quantities are checked against quantity schedule

lines in contract.

Contract and sales order document types – overview II


•Mainly three kinds of standard SAP sales order types exist

• Standard order:

– Typical document with data coming out of master data or former

documents.

• Rush order:

– Pick up or delivery of material directly.

– Billing later on.

•Cash sales

• Sold-to party receives the material directly.

• Material has to be paid when placing the order.

Contract and sales order document types – overview III


•EXTRA: Special oil sales orders are call-offs referring to contracts.

These call-offs – as well as oil contracts – has quantity schedules.

• Automatic call-off: via interface to stock system automatically created call-off generally referring to term contract.

•Nomination: manually created call-off referring to a term or spot contract.

Contract and sales order document types – overview IV


The contract I

Contract Sales orderSales orderSales orderSales order

Sales orderSales orderSales orderDelivery

update

KM – standard contractZKM1 – special oil term contractZKM2 – special oil spot contract


•A contract is a general agreement between vendor and customer

valid within a defined period of time.

•In a contract a special price for a defined quantity of a defined

material is confirmed.

•No special defined points of time for delivery.

•Call-offs on contract which update it.

•In contracts the same functionalities like in sales order are possible.

•EXTRA: In oil contracts the total quantity is divided into subsets in

quantity schedule.

The contract II


The Sales order

Contract

Sales order

OR – standard OrderZAB1 – automatic call-off without transportation (oil)ZAB2 – automatic call-off with transportation (oil)ZAB3 – Nomination, i.e. Manual call-off (oil)

delivery

update

Sales orderSales order delivery

Creation withoutreference to contract

Creation withreference to contract


Data in contract and sales order – determination of plant I

Customer-material

information record

Master dataShip-to party

Plant definedSales order

Item 10

Item 20

Item 30

Item 40

Not defined

Plant defined

Material master data

Not defined

Plant defined


•First system checks if a plant is determined in customer-material

information record. If there is one this plant is proposed in contract /

sales order. If not …

•System checks if a plant is determined in mater data of ship-to party.

If there is one this plant is proposed in contract / sales order. If not …

•System proposes the plant which is determined in material mater.

Data in contract and sales order – determination of plant II


Data in contract and sales order – determination of shipping point I

Shipping

condition

Loading

groupPlant

possible

Shipping point

0003

0004

Shipping point

(proposed)

000201 crane 0001

Ship-to party/

sales orderMaterial

Sales order

item


•Shipping point is determined pro-item.

•System proposes a shipping point via

• Shipping condition (out of sales order / contract)

• Loading group (out of material maser data)

• Plant (out of sales order)

•Therefore in customizing one or more shipping points have to be

determined for each combination of these data.

•Shipping point is relevant for delivery. A delivery is always carried

out by one shipping point.

•In delivery a shipping point can not be changed anymore.

Data in contract and sales order – determination of shipping point II


Data in contract and sales order – pricing conditions I

Price elements

Prices

Discounts and surcharges

Fright

Taxes

-Price list-Material price-Customer specific price

-To customer-To material-...

-Incoterm part 1-Incoterm part 1+2

Condition typesDisplayed in system

PR00..

KF00

KF07KF04

.

.


Data in contract and sales order – pricing conditions II

•Condition types are stored in condition records.

•Condition records allow you to store and retrieve pricing data in the system.

•All condition types you want to use for automatic pricing must be stored in the system as condition records.

•Condition records are defined as a function of a combination of fields.


Data in contract and sales order – pricing conditions III

Condition type

PR00

Key Combination

Sales Organization

Distribution Channel

Customer

Material

0001 01 1500066 40303384 200 EUR per pc

value

delay


Data in contract and sales order – availability check I

Entry

Issue

100

+60

+50

+

-

40

-

100

Req. Del. date

Sales or.

date

1Mat.

AvailabReq. del.

date

7

Incoming

order

20 pc

quantity;

Complete

delivery

Mat.

Availab

Backward scheduling

No

Availability!!

Forward scheduling

Confirmed

delivery date


•Availability check without taken replenishment lead time into

account

• Incoming order today with a requested delivery date at 7th.

•When carrying out a backward scheduling, at systems determined date,

no goods are available.

•Because the customer wants a complete delivery, a quantity of 20 pc

becomes available at stock shortly before requested delivery date, when

60 pc are incoming.

•When carrying out forward scheduling the system determines a

confirmed delivery date later than requested.

Data in contract and sales order – availability check II

delay


Data in contract and sales order – availability check III

Entry

Issue

100

+

-

100

Req. Del. date

Sales or.

date

1Mat.

AvailabReq. del.

date

7

Incoming

order

20 pc

quantity;

Complete

delivery

Mat.

Availab

Backward scheduling

No

Availability!!

Confirmed

delivery date

20+

Forward scheduling

20-

Replenishment lead time


•Availability check with taken replenishment lead time into account

• Incoming order today with a requested delivery date at 7th.

•When carrying out a backward scheduling, at systems determined date,

no goods are available.

•So at same time when order comes new goods are ordered.

•Because of taking replenishment lead time into account, the 20 pc can be

delivered earlier compared to the case when availability is checked

without observing replenishment lead time.

Data in contract and sales order – availability check IV

• Delivery, picking and goods issue

– Ways of delivery creation

– Document structure

Header data / Item data

– Relation between sales order and delivery

– Delivery scheduling

Complete delivery / Partial delivery / Order combination

– Picking

– Goods issue

Delivery, picking and goods issue

Ways of delivery creation

Sales order

Delivery

Delivery

Sales orderSales orderSales orderSales order

Sales orderSales order

Sales orderSales order Delivery

Delivery due list

2

1 Creation of a delivery with direct reference to a sales order in system

Creation of delivery by means of delivery due list


Document structure - Header data / Item data

Header

Item 1

Item 3

Item 2

•Shipping point •Data about delivery scheduling and transportation scheduling (e.g. Goods issue date)•Weights and volumes of the entire outbound delivery •Sold-to party and the ship-to party numbers •Route

•Material number •Delivery quantity •Plant and storage location specifications •Picking date •Weights and volumes of the individual items


Delivery scheduling I

Date of order

Goods issueLoadingTranspor-

tation planning

Material availability

dateDelivery date

Transit time

Loading time

Lead time fortransportation

planning

Pick / pack time


• You must start picking and packing activities on the material availability deadline. This deadline must be selected early enough in advance so that the goods are ready by the given loading deadline.

•The transportation scheduling deadline is the date on which you must start to organize the transportation of the goods. This deadline must be selected early enough to ensure that the means of transport is available by the loading deadline.

•The loading deadline is the date on which the goods must be available for loading and on which all vehicles that are required to ship these goods must be ready for loading. After the time required for loading the goods (loading time) has expired, goods issue can be carried out.

• The goods issue deadline is the date on which the goods leave the company in order to arrive punctually at the customer location.

•The delivery deadline is the date on which the goods are to arrive at the customer location. The difference between the goods issue deadline and the delivery deadline is calculated from the transit time required for the route between the delivering plant and the customer.

Delivery scheduling II


Relation between sales order and delivery I

Sales order10 pc

Del.date 15.09.

Delivery10 pc

Del.date 18.09.

Sales order10 pc

Del.date 15.09.

Delivery4 pc

Del.date 15.09.

1

2 Partial deliveries

Complete delivery


Relation between sales order and delivery II

Sales order10 pc

Del.date 15.09. Delivery26 pc

Del.date 15.09.Sales order

16 pc

Del.date 15.09.

3

Assumption: a) ship-to party is marked in master data for order collection.b) Same ship-to party in sales order one and two.c) Same delivery date and material availability date in sales order one and two.

Sales order combination


Picking I

Delivery

Del.quantity : 10

Pick quantity: 10

Feedback from picking

Stock Shiping point

Pick

list

Pick quantity

Delivery creation


• The picking process involves taking goods from a storage location

and staging the right quantity in a picking area where the goods will

be prepared for shipping.

• Three ways of carrying out picking

• Automatically during outbound delivery creation

• Routinely at certain times

• Manually according to overviews of the day's workload.

Picking II


Goods issue

Delivery 11

Goods issue

Inventory

Shipping pointStore

Account 1

XX

• Billing

– Ways of invoice creation

– Billing document types

– Document structure

Header data / Item data

Pricing conditions

– Billing methods

Individual billing / Invoice split / Collective billing

– Interface to FI / CO

Billing Ways of invoice creation I (basic notes)

Sales orderSales order deliverydelivery invoice

1 Sales order-related billing

Sales orderSales order deliverydelivery invoice

Delivery-related billing2

Billing

Ways of invoice creation II

Sales order

Invoice

Invoice

Sales orderSales orderSales orderSales order

Sales orderSales order

Sales orderDelivery

Billing due list

2

1 Manual billing

Creation of delivery by means of billing due list

Delivery

Invoice

Billing

Billing document types

Delivery

Credit memo

request

Debit memo

request

Debit memo

Credit memo

Sales order Invoice

Cancellation

invoice

Pro forma

invoice

Sales order

Delivery

F1/F2

RE/G2

L2

S1/S2

F5/F8

Order / Delivery related invoice

Credit memo/credit memofor returns

Debit memo

Cancellation invoice /credit memo

Pro forma invoice for sales order and delivery

Billing

Document structure - Header data / Item data

Header

Item 1

Item 3

Item 2

•Identification number of the payer•Billing date•Net value of the entire billing document•Document currency•Terms of payment and Incoterms•Partner numbers, such as the identification number of the sold-to party•Pricing elements

•Material number•Billing quantity•Net value of the individual items•Weight and volume•Number of the reference document for the billing document•Pricing elements relevant for the individual items

Billing

Billing methods I

Invoice

Invoice

Delivery

Delivery

Sales order

Sales order Delivery

Invoice

Invoice

Sales order

Sales order

Delivery

Delivery

Delivery Invoice

2. Invoice split

1. Individual billing

3. Collective billing

Billing

• Assumptions for invoice split

• In Customizing for copying control, you can specify

requirements for splitting to prevent sales orders or

deliveries from being combined into a collective billing

document, e.g. Bill-to party.

•Assumptions for collective billing

• the header data appearing in the billing document must

agree .

• the split conditions specified do not apply.

Billing methods II

Billing

Integration with Fi / Co I

Invoice

Financial accounting (FI)

• Ballance demands to

debtors

• General ledger

• Gains

• Losses

• Accruals

Controlling (CO)

• Profit center

•Cost center

•Extended general ledger

•Projects

•Make-to-order sales orders

•Plant maintenance orders

•Profitability analysis

(COPA)

•Cost collector

Account

determination

Billing

Integration with Fi / Co II – account assignment

• The system can post entries in the billing documents automatically to the relevant accounts. To do this, it must first carry out account assignment.

•Elements for account assignment:

• Chart of accounts of the company code

• Sales organization

• Account assignment group of the customer (from the customer master record, Billing screen, Account group field)

• Account assignment group of the material (from the material master record, Sales 2 screen, Account assignment group field)

• Account key (from the pricing procedure)

•The system carries out account assignment using the condition technique.

Thank you for your kind attention!

Dilip Sadh