SD Business Blueprint - Domestic Sales

7/27/2019 SD Business Blueprint - Domestic Sales

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Business BlueprintSales & Distribution

• The stores person enters the truck number at the time of despatch. This can be before or

after the invoice is made & printed.

•

The invoice is then printed out.• A test / quality certificate is also printed to be sent along with the invoice.

• In case of TVS, bar codes are printed and sent along with the invoice. This is done via a

separate bar code printing system.

• The relevant account postings are made.

• The transporter delivers the goods and gets the proof of delivery from the customer on the

copy of the invoice, or the Lorry Receipt.

• In case of TVS, the goods receipt by TVS is also posted on the web, which can be

downloaded. However, a cross-check with actual proof of delivery is essential.

• The transporter then submits his bill along with the proof of delivery to claim his payment.

• The proof of delivery / LRs are recorded and any over or under deliveries are noted. Then the

transporter’s payment is released after taking into consideration any damages or under-delivery.

• The returnable packaging material comes back and a GR is made to get the same into the

stock.

Agrim, Hosur :

• The company, apart from the standard sales, also does job-work for the customer.

• In this case, the material / components come in from the customer and the assembly work

and labour is done at Agrim. Here the labour / service is charged and not the material.

• The inventory of the final product is maintained.

• Invoice is prepared for the service rendered.

Free Samples:

• Sometimes, free samples are sent to the customers.

• A sales order is made similar to the standard process along with prices and excise duties.

There is no sales tax.

• An invoice is also prepared which shows the prices.

• The customer does not pay for the goods.

• The cost of the goods are posted to an account related to sales promotion expenses.

Scrap:

• Scrap dealers are treated as customers.

• The supplier also can be a scrap dealer.

• Scrap materials are identified by different part numbers.

• Scrap could be metal scrap, waste oil, barrels or other miscellaneous items like computers,

cables, wood scrap, packing material etc.

• The unit of measurement will depend upon the type of scrap – eg. Metal scrap will be in kgs,

waste oil in litres and computers/cables in lots, and barrels in numbers, etc.

• A sales order is prepared for the scrap.

• The price is decided internally and will comprise of basic price, excise duties (where

applicable) and sales tax as per the tax rules.

SD Business Blueprint – Domestic Sales Page 15Version: 1.0




• Additionally, there is a Tax Collection at Source (TCS) – currently charged @ 1% to the

customer. This is on the total gross price – basic + excise + sales tax

•

This TCS can be exempted if a declaration is given by customer.• Invoice is then prepared and sent to the customer along with the shipment.

2. Expectations

• The above process is to be followed broadly.

• The enquiry and quotation needs to be entered in the system and needs to be tracked with

details of negotiations, prices, etc for record and follow-up.

• The customer’s agreement or purchase order is entered in the system with the negotiated

price.

• A sales order is created into the system, usually for a month. The delivery schedules areentered into the system

• The delivery schedule is frequently changed and will be corrected into the sales order.

• The required quantity will be shipped on the planned date.

• The packing and returnable packaging is entered. The packaging material combination can

be different for each customer.

• The returnable packaging is tracked and the inventory can be seen at the customer’s

premises.

• Invoice to be prepared from the system and account postings to happen automatically after

invoice generation.

• The sales order may not be fully invoices for a week or a month and an open quantity will be

seen. This could be due to the customer not adhering to his schedule. The open sales order

can be closed in the system with an appropriate reason.• Free samples to be sent to customers, standard invoice to be generated but customer will not

pay for and hence has to be put into different account.

• The proof of delivery to be recorded so that the transporter’s payment can be released

accordingly. Also it is required to monitor pending proof of deliveries.

• For TVS, the GRN is posted on their web site and needs to be downloaded and a report is

required.

• Scrap sales to happen as normal sales with a different pricing.

• Job work at Agrim is done and the final product is sold but the price charged to the customer

is the labour charge and not cost of the material.

• The invoice to carry specific comment like – Free Sample, Scrap, Stock Transfer etc.

• The returnable packaging coming back to the company is received and GR is made. The

inventory to be adjusted again.

3. Report Requirements

• Please refer to separate document on Reports.

4. Gaps

• Bar codes cannot be directly printed from SAP.





5. Alternate Solution

• An interface between SAP and legacy can be developed for printing bar codes from the

current bar code program.

6. SAP Process Mapping

• The inquiry will be created in the system, based on which a quotation can be created.

• Various stages of quotation prices and discussions can be recorded in a text area for

reference of the user. Only the final negotiated price will be recorded in the quotation pricefield.

• A contract is prepared in the system which contains the price. This may be with reference to

the quotation.

• A sales order will then be created in the system. This is usually for a month and contains the

delivery schedule – date and quantity.

• The prices will be copied from the quotation / contract and there will be an option to edit that

price if required.

• A condition (price) record will be maintained for customer-material combination.

• A delivery document will be generated for the goods to be shipped / invoiced and the picking

is done.

• The packing is done at this stage. Packing instructions need to be maintained. These can be

maintained differently for every customer. The packing material is not charged to customer but hits the inventory.

• A returnable packaging material, if applicable, is entered in the delivery document. Thereturnable packaging is tracked at customer location. It is taken back into inventory once it isreturned, by creating a return packaging order and creating a delivery for posting GR.

• A shipment is created, if required, and the deliveries are attached to the shipment document.

Text fields will be provided to enter the transporter’s name, truck number.

• Goods Issue is posted. The goods issue can be posted only after the quality inspection has

been carried out. The testing / quality certificate generation and print out will be handled byQM.

• The goods issue will be posted for that delivery. The inventory goes down at this stage and

the material document gets posted.

• An invoice is prepared based on this delivery document and sales order. The accounting

documents are posted at this stage.

• The post goods issue and the invoice will be done on the same date.

• For TVS, the bar codes will be printed by providing an interface to capture and pass on

relevant parameters from SAP to the bar code printing program.

• The user can view the standard report for POD. Another standard report shows the

differences if any in the POD. Based on this, the payment to the transporter can be released.

• Sales from Agrim are in the similar manner. Here the price maintained for the final product

will be the labour / service charge and not the material price.

• Scrap sales will be handled by creation of a standard order with different pricing procedure.




Documents

SD Business Blueprint - Domestic Sales