Sales and Distribution (SD)

Scheruhn
Product
SAP ERP 6.0 EhP4
Global Bike Inc.

Level
Beginner

Focus
Cross-functional integration
Sales and Distribution
In addition

to the standard Sales and Distribution slides, this presentation includes links to business process models provided by a team at Hochschule Harz in Germany led by Prof. Dr. Hans-Jürgen Scheruhn.
These business models represent the processes in the case study 100% and thus facilitate an integrated view on data, functions and persons responsible.
Each link in the presentation is indicated by the symbol . A list of all links can be found on the second last page.

Accounting
Controlling

unit for which you can maintain a legal set of

books
Credit Control Area
An organizational entity which grants and monitors a credit limit for customers.
It can include one or more company codes
Sales Organization
An organizational unit responsible for the sale of certain products or services.
The responsibility of a sales organization may include legal liability for products and customer claims
Distribution Channel
The way in which products or services reach the customer
Typical examples of distribution channels are wholesale, retail, or direct sales

Area
Combination of Sales Organization, Distribution Channel and Division
Determines conditions (i.e.

pricing) for sales activities
Plant (here: Delivering Plant)
Plant from which the goods should be delivered to the customer
Other SD organization units:
Shipping Point
Loading Point
Sales Office
Sales Group
Sales Person

Bike Germany GmbH
US West
US East
San Diego
Germany North
Germany South
Dallas
Miami
Hamburg
Heidelberg
Client
Company
Code
Sales
Organization
Sales Office

Control Area (global) GL00
CC US00
US East
UE00
US West

UW00

CC CA00

CA East
CE00

CA West
CW00

CC DE00

DE South
DS00

DE North
DN00

CC GB00

GB South
GS00

GB North
GN00

CC AU00

AU South
AS00

AU North
AN00

Distribution Channel Wholesale WH

Distribution Channel Internet IN

Division Bicycles BI

Division Accessories AS

Sales
Organisation

Company Code

processing orders, deliveries, invoices and customer payment
Every customer MUST have

a master record

Created by Sales Area
Sales Organization
Distribution Channel
Division

areas:
General Data
Company Code Data
Sales Area Data

the entire organization:
Name

Address Communication

Company Code specific information:
Acc. Mgmt Payment Bank

Sales Area specific information:
Sales Office Currency

Sales Org. UW00

Sales Org. DS00

to manage about a material
It is used by most components

within the SAP system
Sales and Distribution
Materials Management
Production
Plant Maintenance
Accounting/Controlling
Quality Management
Material master data is stored in functional segments called Views

Data
Accounting Data
Storage Data
Quality Data

the entire organization:
Name

Weight Unit of Measure

Sales specific information:

Delivering Plant Loading Grp

Storage Location specific information:
Stock Qty

Storage Loc. FG00

Storage Loc. TG00

condition master to be dependent on various data:
Material specific
Customer specific
Conditions

can be dependent on any document field

various media, such as:
E-mail
Mail
EDI
Fax
XML
Output examples:
Quotation
Confirmation
Invoice

that assists in the sales, distribution, and marketing of a

companies products and services to its customers. It contains the following functionality:
Creating and tracking customer contacts and communications (sales activity)
Phone call records
On-site meeting
Letters
Campaign communication
Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes

Pre-sales documents need to be managed within the presales activities: Inquiries and Quotations. These documents help identify possible sales related activity and determine sales probability.

is to equip the sales technician with all the information

necessary to negotiate and complete the potential sale.
Information needed:
Past sales activity
Past communication
Contact information
General Company info
Credit limits and usage
Current backorders
360º view of your customer

information or quotation in respect to their products or services

without obligation to purchase.
How much will it cost
Material/Service availability
May contain specific quantities and dates

The inquiry is maintained in the system and a quotation is created to address questions for the potential customer.

to deliver specific products or a selection of a certain

amount of products in a specified timeframe at a pre-defined price.

documents and activities
Customer contacts us for order: phone, internet, email
Existing

Contract
Quotations

The electronic document that is created should contain the following basic information:
Customer Information
Material/service and quantity
Pricing (conditions)
Specific delivery dates and quantities
Shipping information
Billing Information

areas:
Header
Data relevant for the entire sales order: Ex: customer data,

total cost of the order


Line Item(s)
Information about the specific product: Ex: material and quantity, cost of an individual line



Schedule Line(s)
Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries

to process your customers request, the following information is determined

for each sales order:
Delivering Schedule
Shipping point and route determination
Availability Check
Transfer of requirements to MRP
Pricing
Credit limit check

requested delivery date for the order or each line item.

The system will then determine a delivery timeline, this will be used when determining our material availability, or ATP (Availability to Promise) date.

The system will determine this date using forward and backward scheduling rules you have defined.

2nd
Pick & Pack
Time (2 days)
7th
Requested
Delv.
Date
Goods
Issue
Loading
Material
Availability
Order
Date
Transp.
Sched.

the system must determine the shipping point from which the

material will be shipped and the route the material will take to get from your warehouse to your customers location.

A shipping point is determined for each line item within the order.

The route determination will is used to define the transit time of the material that we used in scheduling.

outward inventory movements
Proposes 3 methods of delivery
One-time delivery
Complete delivery
Delayed proposal
Rules

are created by YOU

the pricing screens at both the header and the line

item level.
Header pricing is valid for the whole order it is the cumulative of all line items within the order
Line item pricing is for each specific material.

The system will automatically search for price, discounts, surcharges, calculate taxes and freight. You have the ability to manually manipulate the pricing at both the header and line item level within the sales order by entering a condition type and amount.
Taxes and freight can be set-up so we can’t manually enter

risk for each customer by specifying credit limits.
During the sales

order process the system will alert the sales rep about the customers credit situation that arises, if necessary the system can be configured to block orders and deliveries.

delivery document for the sales order. This document controls, supports,

and monitors numerous sub-processes for shipping processing:
Picking
Packing
Post Goods Issue
Integrated with the Material Management (MM) and Finance (FI) modules

8…13
Delivery 8…14
Delivery 8…15
Complete
Delivery
Sales Order 5
Delivery 8…16

is possible — delivery block (hold), completeness
Confirms availability
Confirms export/foreign trade

requirements
Determines total weight & volume

Updates route assignment
Assigns picking location
Updates sales order
Determines batches
Quality check (if

needed)
Updates sales order

the control mechanism for this process
Picking
Packing
Loading
Posting Goods Issue
Changes to delivery

are allowable - products, quantities

storage location assignment
Supports serial number/lot number tracking and batch management
Integrated

with Warehouse Management (WM)

specified products (customer preference and UCC-128 considerations)
Identifies and updates accounts

associated with returnable packaging
Tracks the packed product by container
Insures weight/volume restrictions are enforced
All packed items are assigned to the required means of transportation

the products
Reduces inventory and enters Cost of Goods Sold
Automatically updates

the General Ledger (G/L) accounts
Ends the shipping process and updates the status of the shipping documents

sales order and/or delivery document.
Order-based billing
Delivery-based billing
The billing process is

used to generate the customer invoice.
It will update the customer’s credit status.

to your customer sub-ledger account and credit your revenue account.
It

is at this point that the sales process is passed over to Financial Accounting to await payment.

9
Delivery 8…56
Invoice 9…68
Order 6
Delivery 8…20
Delivery 8…21
Invoice 9…45
Invoice 9…46
Split
Invoicing
Order 32
Delivery 8…86
Invoice

9…92

Invoice 9…91

this step is managed by the Financial Accounting department.
Final payment

includes:
Posting payments against invoices.
Reconciling differences between payment and invoice.
Payment will create a posting clearing the liability in the A/R account and increases your bank account.

to find the status of an order at any point

in time. The SAP updates the order status every time a change is made to any document created in the customer order management cycle
(Order-to-Cash).

in such a short time, because twenty participants made mistakes

for me! You cannot make so many mistakes all alone”

SAP Co-founder Klaus Tschira, on his experiences teaching COBOL to clients at IBM.

Orders (VA05)
Tool to Find Order
Need student’s user id/data set

number

assigned] [level of abstraction (1-4)]
4-5 SD Organizational Structure : “GBI

System Organizational Model” MM, SD, FI(1-3)
4-6 SD Organizational Structure: “GBI System Organizational Model” MM, SD, FI(1-3)
4-7 Global Bike Inc. and Global Bike Germany GmbH : „GBI Org Chart US/DE „(1-3)
4-8 SD Organizational Structure: “GBI System Organizational Model” MM, SD, FI(1-3)
4-9 SD Master Data : Data Model (DM) “GBI Data Model” MM,SD,FI (3)
4-10 Display Customer : General Data : Mask Diagram (MD) “Create Customer Address Data / XD01”(4)
4-11 General Data : Mask Diagram “Create Customer Address Data / XD01”(4)
4-11 Company Code Data : MD “Create Customer: Company Code Data / XD01”(4)
4-11 Sales Area Data : MD “Create Customer Sales Area Data / XD01”(4)
4-12 Customer Master : Event Process Chain (eEPC) “Create New Customer“(3)
4-13 Components Sales and Distribution, Materials Management, Accounting/Controlling and MD “Create Trading Goods:Basic Data 1 / MMH1”(4)
4-14 Material Master Views : eEPC “Create Material Master for Trading Goods”(3)
4-14 Basic Data and 2 more views: MD “Create Trading Goods:Basic Data 1 / MMH1”(4)
4-15 Material Master : eEPC “Create Material Master for Trading Goods”(3)
4-18 Sales Order Process : Value Added Chain Diagram “GBI_SD”(2)
4-18 7 eEPCs like Sales Order Entry(3) or Check Availability (3) and DM “Integration SD-FI”(3)
4-21 Inquiry : eEPC “Create Customer Inquiry“(3)
4-22 Quotation : eEPC “Create Customer Quotation“(3)
4-23 Sales Order : eEPC “Create Sales Order Referencing a Quotation”(3)
4-24 sales document : Attribut Allocation Diagram “Sales Order”(4)
4-27 Backward Scheduling : Attribut Allocation Diagram “Backward Scheduling“(4)
4-30 Availability Check: eEPC “Check Stock Status”(3)
4-33 Shipping & Transportation eEPC” Start Delivery Process“(3)
4-34 Shipping DM “Integration SD-FI”(3)
4-38 Picking : eEPC” Pick Materials on Delivery Note”(3)
4-40 Goods issue : eEPC” Post Goods Issue“(3)
4-41 Billing : eEPC” Create Invoice for Customer“(3)
4-42 Financial Accounting : Information Carirer Diagram “FI-SD Integration Point”(3)
4-43 Billing Methods DM “Integration SD-FI”(3)
4-44 Payment: eEPC “Post Receipt of Customer Payment”(3)
4-45 Document Flow : Information Carirer Diagram “GBI Document Flow MM,SD,FI” (3)

All assigned models and its objects are linked to each other. This enables the model user to horizontally navigate (via Object Occurrences) within one level of abstraction and to vertically navigate (via Object Hierarchy) between the 4 levels of abstraction.

Levels of abstraction (1-4)
(1) Core level
(2) Overview level
(3) Detailed level
(4) Document level

User Rolls and interact with GBI 2.0

Processes via SAP GUI :

Execute GBI 2.0 Processes :
Order of entire case study
Single case study processes

Execute GBI 2.0 Transaction :
All content of case studies at a glance

GBI 2.0 Data In- / Output :
Entire SAP ERP document flow
Description SAP ERP mask structure
All SAP ERP master & transaction data
All SAP ERP organizational units

(Org. units / Positions / Rolls/ User) :
Level of Abstraction (LA) 1 to 3

Value added Chain (VAC) : LA 1 and 2
Event driven process chain : LA 3

Information carrier diagram : LA 3
Mask diagram : Level of Abstraction 4
Entity Relationsship Diagram : LA 3
Org. Chart : Level of Abstraction 1- 3

Funktion Tree : Level of Abstr .1 to 3

Functions

Execution in SAP ERP Model Presentation in ARIS

Organizational View

Process View

Function View

Data View