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BUSINESS BLUEPRINT
Submitted to
ABC LIMITED
By
XYZ LIMITED
AUGUST 2009
VERSION 2.0
DOCUMENT INFORMATION
Project Name Document Name Document Location
ABC Business Blueprint_ Document Server
SD_ V2.0
DOCUMENT HISTORY
Version Document Date Author Reviewed BY Change
Name Control
1.0 ABC_ Business Venkata.C Srinivasan VS
Blueprint_
SD_ V2.0
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY..........................................................................5
1.1 BACKGROUND......................................................................................5
1.2 BUSINESS BLUEPRINT OVERVIEW...........................................................5
1.3 SALES & DISTRIBUTION........................................................................7
1.4 IMPLEMENTATION SCOPE.......................................................................7
1.4.1 FUNCTIONAL SCOPE...................................................................................7
1.4.2 GEOGRAPHICAL SCOPE...............................................................................9
1.4.3 BUSINESS PROCESS SCOPE........................................................................9
1.4.4 STANDARD SALES PROCESSING IN SAP......................................................10
1.4.5 GENERAL SETTINGS.................................................................................13
1.5 MODULE INTEGRATION........................................................................13
1.5.1 MM - MATERIALS MANAGEMENT.................................................................13
1.5.2 FICO – FINANCE & CONTROLLING..............................................................14
1.5.3 PS – PROJECT SYSTEMS............................................................................14
1.5.4 QM - QUALITY MANAGEMENT.....................................................................15
2 ORGANISATION STRUCTURE................................................................16
2.1 ORGANISATION ELEMENTS - SALES & DISTRIBUTION..............................16
2.1.1 CONTROLLING AREA.................................................................................16
2.1.2 COMPANY CODE.......................................................................................16
2.1.3 SALES ORGANIZATION..............................................................................17
2.1.4 DISTRIBUTION CHANNEL..........................................................................18
2.1.5 DIVISION................................................................................................18
2.1.6 SALES AREA............................................................................................19
2.1.7 SALES OFFICE..........................................................................................19
2.1.8 PLANT.....................................................................................................20
2.1.9 STORAGE LOCATION.................................................................................21
2.1.10 SHIPPING POINT......................................................................................22
2.2 OVERALL ORGANISATION STRUCTURE...................................................23
3 MASTER DATA....................................................................................24
3.1 CUSTOMER MASTER............................................................................24
3.1.1 GENERAL DATA........................................................................................25
3.1.2 COMPANY CODE DATA..............................................................................25
3.1.3 SALES AND DISTRIBUTION DATA...............................................................25
3.1.4 CUSTOMER ACCOUNT GROUPS..................................................................25
3.2 MATERIAL MASTER..............................................................................26
3.2.1 GENERAL DATA........................................................................................26
3.2.2 SALES AND DISTRIBUTION DATA...............................................................26
3.3 PRICING MASTER................................................................................27
3.4 CLASSIFICATIONS FOR SALES MASTERS................................................28
3.4.1 CUSTOMER GROUPS.................................................................................28
3.4.2 MATERIAL GROUPS...................................................................................28
3.5 OTHER DATA......................................................................................28
3.5.1 TERMS OF PAYMENT.................................................................................28
3.5.2 TAX CODE...............................................................................................29
3.5.3 TAX RELEVANCY OF MASTER RECORDS.......................................................29
3.5.4 ACCOUNT ASSIGNMENT............................................................................29
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public, private or commercial use, without prior written permission from XYZ Limited.
4 BUSINESS PROCESSES........................................................................31
4.1 PRE-SALES HANDLING - INQUIRIES.......................................................31
4.1.1 Purpose...................................................................................................31
4.1.2 Master Data.............................................................................................31
4.1.3 Business Process......................................................................................31
4.1.4 Document for Inquiry at ABC.....................................................................32
4.1.5 Item Categories for Inquiry at ABC.............................................................33
4.1.6 Schedule line Categories for Inquiry at ABC.................................................33
4.1.7 BPML LINK...............................................................................................33
4.2 PRE-SALES HANDLING – QUOTATION....................................................33
4.2.1 Purpose...................................................................................................33
4.2.2 Master Data.............................................................................................34
4.2.3 Business Process......................................................................................34
4.2.4 Document for Quotation at ABC..................................................................35
4.2.5 Item Categories for Quotation at ABC.........................................................35
4.2.6 Schedule line Categories for Quotation at ABC..............................................35
4.2.7 BPML LINK...............................................................................................35
4.3 SALES ORDER.....................................................................................36
4.3.1 Purpose...................................................................................................36
4.3.2 Master Data.............................................................................................36
4.3.3 Business Process......................................................................................36
4.3.4 Document for Order at ABC.......................................................................38
4.3.5 Item categories for Order at ABC................................................................38
4.3.6 Schedule line categories for Order at ABC....................................................38
4.3.7 BPML LINK...............................................................................................38
4.4 BILLING/INVOCING.............................................................................39
4.4.1 Purpose...................................................................................................39
4.4.2 Master Data.............................................................................................39
4.4.3 Business Process......................................................................................39
4.4.4 Document for Billing at ABC:......................................................................40
4.4.5 BPML LINK...............................................................................................41
5 LOCALIZATION FOR INDIA...................................................................41
5.1 COUNTRY INDIA (CIN) VERSION...........................................................41
5.1.1 Purpose...................................................................................................41
5.1.2 Master Data (EXCISE MASTERS).................................................................42
5.1.3 Features for ABC......................................................................................42
6 GAPS IDENTIFIED AND CLOSED...........................................................44
7 TRANSACTION CODES.........................................................................45
1 EXECUTIVE SUMMARY
1.1 BACKGROUND
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
ABC LTD is an associate of the ABC Group and is headquartered in Chennai. The
company is engaged in design, engineering, procurement, construction and project
management services. ABC LTD has a diversified basket of services in the field of
engineering services which include:
Turnkey Projects
Power Plants
Metallurgical Plants
Water and Sewage management
Wind Energy
Following activities were carried out during different phases of the project.
AS IS Documentation
plant Visit
Business Process Master List (BPML)
Business Blue print Documents (BBP’s)
GAP Analysis
Organization Structure Workshop
Stakeholders/Process Owners Workshop
The information was gathered through above activities carried out during different
phases of projects i.e. reviews of business processes, business procedures,
documentation and relevant reports
The purpose of Business Blueprint document is to prepare to move forward with the
implementation of ABC Limited SAP R/3 system. At the conclusion of the blueprint, the
XYZ consultants will determine the SAP functionality required to run the ABC Limited
business.
The Blueprint and its associated appendices present a summarized perspective of all
functional business processes that will be implemented. As such, the Blueprint
document will serve - from this point forward the dual role of both official project
scope as well as system acceptance criteria.
The body of this document describes the organizational structure, Master Data, and
R/3 functional process flows to be implemented at ABC Limited. Generally,
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requirements, certain key requirements are explicitly identified and summarized to
highlight their importance to ABC Limited and to document the approach proposed to
meet the requirement.
One section of the document summarizes identified gaps. The project team has
discussed this list with agreement on the approach going forward. Acceptable
approaches may require:
Other section of the document summarizes Organization Structure, Master Data and
Business Processes. These were used as per Accelerated-SAP (ASAP) Methodology to
discuss the ABC Limited requirements in detail.
The Blueprint reiterates the R/3 organizational structures that have been identified
and will serve as the basis for the initial configuration activities. No significant
configuration and customisation choices have been identified that will prevent the
future implementation of additional capabilities within the R/3 environment.
The information gathered and documented in the Blueprint is sufficient for the team to
go forward into the Realization phase. However, it is critical that both the XYZ and
ABC Limited team agree on the scope of the project as presented in this document.
Acceptance - by both teams - is required to move the project into the next phase.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
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1.3 SALES & DISTRIBUTION
The Sales and Distribution module in SAP contains all of the software functionality included
in managing pre-sales activities, receiving & managing sales orders and billing customers
for products/Services sold. A major focus for ABC’s implementation will be to successfully
match ABC’s business requirements with the Sales and Distribution Module in SAP R/3.
This section provides an overview of XYZ understanding of the various processes such as
Order Fulfilment, Customer management, and Sales processes followed at ABC vis-à-vis
SAP functionality. These have been arrived at after close interaction with key business
users, conduction of business process workshops and study of existing processes.
The activity resulted in the formulation of AS-IS Documents, which in turn formed the
basis for arriving at Business Process Master List (BPML). BBP’s would form basis of
configuring the final system. The following gives an overview and scope of business
processes to be covered in SAP.
ORGANISATIONAL SCOPE
ABC-Chennai, Vanagaram office is responsible for the sales and marketing of the
goods and services for projects that are being carried out in India. ABC has 13
registered offices across 13 states; these sales offices along with Chennai
(Vanagaram) office are also responsible for sales planning, order execution along with
co-ordination with Sales Accounting group, which processes accounts receivables and
sales accounting functions of invoicing, taxation, documentary payments and
credit/debit notes etc.
ABC DIVISIONS
ABC has three main business divisions categorized into 10 sub divisions in total with 2
additional revenue generating units. ABC operates with the following divisional
structure:
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Business Head Category
Trading Division
ABC is structured its operations into projects catering to various divisions and these
projects are operated at across 13 states.
The following units are within the scope of SAP Implementation at ABC:
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Sales Offices Sales Offices
Kolkatta Andhra Pradesh
Gujarat Orissa
Kerala Karnataka
Jharkhand Chattisgarh
Maharastra Rajasthan
Tamil Nadu Delhi
Punjab
Master Data
o Customer
o Material
o Conditions
o Outputs
o Tax Codes
o Tax Classifications for customer and material
Pricing
Pre-sales
o Inquiry
o Quotation
Order Fulfillment
o Sales Order
Billing
o Billing Document
o Outputs
Country India Version
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1.4.4 STANDARD SALES PROCESSING IN SAP
During sales order processing, the system carries out basic functions such as:
There is a document flow function in the system. The document flow shows the entire
chain of documents – inquiry, quotation, sales order, invoice and accounting
document. It is nothing but the flow of data from one document to another document.
When a sales document is created, the system proposes much of the data from
master records, preceding documents and automatically determined by the system.
The following graphic shows how the various types of sales documents are inter-
related and how data subsequently flows into shipping and billing documents.
PP
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1.4.4.1 MASTER DATA
It comprises Material, customer, condition and other master data. The master Data in
an integrated SAP environment is used by all components in the SAP Logistics System.
The integration of all master data in a single database object eliminates redundant
data storage.
1.4.4.2 PRICING
The term pricing is used broadly to describe the calculation of prices (for external use
by customers or vendors) and costs (for internal purposes, such as cost accounting).
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 - determine the final price the customer gets. 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.
Pre-sales business processes in the system is represented using the functions for
inquiries and quotations. Customer inquiries and quotations to the customer can be
entered and monitored.
The inquiry is a request from the customer to provide him with a sales quotation. A
quotation presents the customer with a legally binding offer for delivering a product or
providing a service within certain fixed conditions. The data that is stored in sales
queries forms the basis of subsequent documents and sales analysis, wherever
referenced.
This covers the process of Order, Contracts and Outline Agreements Entry that contain
committed quantities at special prices and payment terms and customer-material
information for certain customers with the standard functions such as the following:
The pricing conditions are dependent on characteristic values and maintained centrally
as master data. Apart from standard products, other products such Sample sales
(under excise invoice), Scrap sales, etc., Will also be managed through standard sales
order processing.
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1.4.4.5 BILLING
In SAP Country (India) specific statutory requirements are met through CIN. These
statutory requirements have an impact on the business requirement of customers in
India.
These involve various forms of work lists for daily processing for sales and billing
processing.
Standard reports that are used for example invoices to customers, stocks at various
locations, status and tracking of orders, recording and management of financial
instruments etc.
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1.4.5 GENERAL SETTINGS
1.4.5.1 COUNTRY
o The country specific checks such as date format, decimal format, bank data,
postal data and control data needs to be maintained for a country. All the
country codes are already defined in SAP.
At ABC: Enter the required date format, the decimal format, bank data, postal data
and control data in the country for India.
1.4.5.2 REGION
The region is a further geographical classification within a country. The region is used
for: as a part of address, tax reporting in FI and pricing in SD (only for tax). The
usage of region can vary from country to country.
At ABC: The region Will be used to define the states in India. Zones are mapped as
Sales office in the new organization structure in SAP.
This is the unit in which material is purchased, stocked, sold and moved. SAP has
standard unit of measures already defined.
At ABC: The UOM such as LOT, NO, KG, MT etc., will be defined in SAP for ABC.
Definition of Material Types and Material Master records for finished and other
products belonging to various divisions
Stock Transport Order Processing for transfer of goods between plants will be
done by MM Module.
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1.5.2 FICO – FINANCE & CONTROLLING
Project Systems is a one among the vital modules with which a sales order would
interact. A project would be created for every work order/job/contract. This
project would be linked to the sales process as a WBS (work breakdown structure)
element in the R/3 system.
Also the milestone billing of the item in the sales order is blocked for billing
by default and is linked to the project network through the WBS element.
As and when the project progress is updated in the PS module and milestone
is released in PS, the relevant billing block in sales order for the milestone
billing date in sales order is released and can be invoiced.
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1.5.4 QM - QUALITY MANAGEMENT
The Quality Management (QM) component supports Sales and Distribution (SD) by
processing quality inspections and creating quality certificates for deliveries. A quality
inspection for a delivery allows checking the quality of products before it leaves the
plant.
The Material receipt certificate issued by the quality management team would be
used as a baseline to prevent invoicing the material/supply to the customer in
sales.
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2 ORGANISATION STRUCTURE
The company code is the smallest organizational unit of Financial Accounting for which
a complete self-contained set of accounts can be drawn up for purposes of external
reporting.
The process of external reporting involves recording all relevant transactions and
generating all supporting documents required for financial statements such as balance
sheets and profit and loss statements.
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2.1.3 SALES ORGANIZATION
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Sales Organization Code
Renewable Energy Sales Organization 1105
Chennai Sales Organization 1205
Kolkatta Sales Organization 1210
Structural Sales Organization 1215
Water Sales Organization 1305
Pipe Rehabilitation Sales Organization 1310
Wind Energy Sales Organization 1805
Trading Sales Organization 1810
Other’s (CER) 1815
2.1.5 DIVISION
Material division would be identified clearly at the time of defining material master
records for finished products.
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At ABC: Only one division has been identified. The list of divisions in ABC is as
follows:
Division Code
Common Division 00
AT ABC: There would be separate and unique sales areas for selling the materials from
specific sales organizations.
Every registered office of ABC in 13 states has been identified as a sales office.
Following are defined as sales offices in ABC
2.1.8 PLANT
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A plant is an organizational unit within Logistics, serving to subdivide an enterprise
according to procurement, maintenance, and materials planning. A plant is a place
where materials and services are provided.
The plant is an operating area or branch within a company. The plant is embedded in
the organizational structure as follows:
The plant is assigned to a single company code. A company code can have
several plants.
A plant can be assigned to several combinations of sales organization and
distribution channel.
A plant can have several shipping points. A shipping point can be assigned
to several plants.
A plant has its own material master data. This gives further flexibility of
maintaining the same material across various combinations of plant and
sales organizations.
Material valuation: When the valuation level is plant, the material prices
are defined for each plant. Each plant can have its own account
determination.
Inventory Management: The material stocks are managed within a plant.
Costing: In costing, valuation prices are defined only within a plant.
Plant will be assigned to Sales Organization and Distribution Channel combination for
carrying out sales activity from that location.
Plant Code
Chennai 1000
Kolkatta 1010
Delhi 1020
Andhra Pradesh 1030
Chattisgarh 1040
Gujarat 1050
Jharkhand 1060
Karnataka 1070
XYZ Limited XYZ and ABC User Page 20 of 43
© XYZ Limited, 2007, All Rights Reserved.
This document is proprietary to XYZ Limited. XYZ and ABC use
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Kerala 1080
Maharastra 1090
Orissa 1100
Punjab 1110
Rajasthan 1120
They are assigned to plants and are relevant for sales functions.
At ABC: There would be one logical storage location attached to each of the 15
plants, specified above. Storage Location definition would be a part of MM Module.
The shipping point is an organizational unit in Logistics that carries out shipping
processing. The shipping point is the part of the company responsible for the type of
shipping, the necessary shipping materials and the means of transport. The shipping
point has the following attributes:
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Storage Location Code
ABC Shipping Point 1000
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2.2 OVERALL ORGANISATION STRUCTURE
The overall organization structure can be summarized in the figure below. The various
organizational elements are described with the code to be used in configuration
alongside.
3 MASTER DATA
In sales and distribution, products are sold or sent to business partners or services are
performed for them. Data about the products and services, as well as about the
business partners is the basis for sales processing. Sales processing with the SAP R/3
System require that the master data has been stored in the system.
Master data is maintained for customer, Pricing and finished goods. This is created
and maintained by responsible personnel in relevant sales function.
The various data elements for customer master records pertain to general information
like name, address, contact persons; accounting information pertaining payment
terms, shipping terms, G/L reconciliation account, customer classification towards tax
determination and relevant partner functions for the same.
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3.1.1 GENERAL DATA
Defined at the client level, and independent of any financial, or sales functions, it
includes company name, address, telephone number, region, unloading point etc.
Data relevant to ABC company code and includes account management data. The
customer can also be extended to other company codes like, SLL and OGPL.
This data is defined for a specific sales area, combination of sales organization,
distribution channel and division. It includes shipping terms, pricing data, shipping
conditions, delivery priority and partner functions relevant for shipping and billing.
Customer records are created for specific account groups (Sold to party, Goods
Recipient, Payer and Bill to Party). These groups control:
Separate account groups will be defined for finished goods customers and also internal
plants as customers.
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3.2 MATERIAL MASTER
Different company areas and SAP modules access the material master records, which
therefore must meet a wide variety of requirements. During sales processing, the
system repeatedly accesses the material master records. It is one of the basic sources
of data for sales processing. The material master record is accessed, for example, in
the inquiry, in the quotation and in the sales order. Data in the material master record
is also of great importance for shipping and billing. However, the data required for
shipping, for example, is not the same as that required for sales or billing.
Material master records form the basic source of data for sales processing. The
information relevant to general data, sales, plant, planning and storage related is
maintained through views in the material master. This data is used during order entry,
shipping and billing processes.
The sales and distribution data for a material is managed at the organizational levels
client, plant, sales organization and distribution channel. Therefore, the plant, the
sales organization and the distribution channel have to be entered for which a material
master record needs to be changed.
All data and information entered for a material is stored in the data structure of the
material master record. For sales and distribution, general data and sales and
distribution data in the material master record are relevant.
General data in a material master record is identical for every sales organization, plant
and storage location. General data, which is of importance for all departments, is
always entered by the department, which creates the first part or view of the master
record. General data contains, for example, the material number that identifies it, the
material description, and units of measure, value, weight, volume and division.
Sales and distribution data in a material master record is defined for a specific sales
organization and distribution channel. The delivering plant, grouping terms for price
agreements and sales texts, for example, are included in sales and distribution data.
The fact that a material is linked to a distribution channel allows the material to be
sold with different conditions through the various distribution channels.
Sales and distribution data is divided into data that depends on the sales organization
and data that depends on the plant:
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This data includes the delivering plant, the sales unit, the minimum order quantity and
the minimum delivery quantity.
Plant data
This data applies to a plant and all its storage locations. Examples of plant data are
MRP data, such as the safety stock quantity, the reorder level, or the shipping
processing time.
The standard R/3 System includes predefined elements for routine pricing activities.
For example, the standard system includes condition types for basic pricing elements,
such as material prices, customer and material discounts, and surcharges such as
freight and sales taxes.
Pricing data will be maintained using condition records. These will be administered
centrally and controlled by centrally.
At ABC: There Will be a separate set of pricing conditions that Will be maintained for
the calculation of excise, local and central sales tax, service tax etc. These will be
handled using SAP standard functionality under CIN.
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3.4 CLASSIFICATIONS FOR SALES MASTERS
The Sales Master Data Classifications in SAP consists of the following:
There are five fields in sales order item view additional data tab, these fields are
Material group 1, Material group 2, Material group 3, Material group 4, and Material
group 5. Material group in material master will be used to group particular grade
material code.
At ABC: Material groups would be used for pricing and reporting analysis purpose.
This will be defined by MM and for details please refer to MM BBP
The terms of payment are defined for the customers. Aspects of accounting such as
due date for net payment in the invoice is defined and managed in FI module. The
short texts for the terms of payment can be stored for SD.
At ABC: This will be a part of FI Module. For details please refer to the FI BBP.
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public, private or commercial use, without prior written permission from XYZ Limited.
3.5.2 TAX CODE
Sales tax code represents the specifications used for calculating and displaying tax. It
Will have sales tax rates for each combination of LST/VAT and any other subsequent
tax as applicable or CST. Separate sales tax code should be maintained. The sales tax
code is defined for each country in which one of company codes is located.
At ABC: This will be a part of FI/SD Module. Different sales tax codes will be defined
in ABC to cater to different requirement.
The tax relevance for customers and materials can be defined to determine the tax
code in pricing. There are separate tax classifications for customers and tax
classifications for materials. The respective tax classification is assigned in the
customer and material master.
At ABC: Depending on the tax codes at ABC, the customer and material tax
classification will be defined. For example, full tax, tax exempt classification for
material; and tax with Form C, tax without Form, tax-exempt classification for
customer.
0-Exempt
1-full tax
The tax code will be determined based on the following condition tables:
The account assignment is used to determine revenue accounts at the time of billing.
An accounting document gets generated automatically when a billing document is
created in SAP. The revenue accounts are automatically determined based on account
assignment.
The account relevance for customers and materials can be defined to determine the
revenue accounts at the time of billing. There are separate account assignment groups
for customers and account assignment groups for materials. The respective account
assignment group is assigned in the customer and material master.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
At ABC: Depending on the revenue account determination at the time of billing, the
customer and material account assignment group will be defined.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
4 BUSINESS PROCESSES
4.1.1 Purpose
Also every tender notice (Henceforth referred to as inquiry in this document) found
apt for primary consideration by the marketing/proposal team, would be entered into
the system as an inquiry. Depending on the decision whether to bid or not to bid , the
inquiry will either be succeeded by the quotation in R/3 system or will be rejected with
an appropriate note to facilitate, analysis and understanding at a later stage. This is
typically a pre bid information capture scenario.
When ABC gets a inquiry from a direct customer it would record the requirements in
an inquiry and use it for further analysis or processing.
Customer Master, material master, Payment terms, Pricing condition records, output type,
Tax code, Tax classification.
The New Product Inquiry will be handled through respective Sales organization for
regular product through SAP as mentioned below.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
next document in R/3 system or will be rejected with an appropriate note
to facilitate, analysis and understanding at a later stage.
The total quantity of an inquiry item can be subdivided between the
schedule lines in different amounts and relevant delivery dates.
Also, the sub components of an item or the bill of quantities as referred by
ABC (Henceforth referred to as Bill of Material (BOM) in this document) can
be made to be automatically determined for standardized materials/items.
Valid conditions for an item are listed in the item conditions and can be
derived individually from the conditions for the whole document. Business
partners can be specified in sold-to parties as different partner functions.
While creating the inquiry the prices can be quoted manually in the R/3
system if rates are readily available or in case found out from the vendor,
ABC can choose to optionally enter the vendor conversation details in the
Item text (this feature is always available in R/3 system).
In case of tender notice related inquiries, after creation of the inquiry in the
system and if the proposal/management team decides not to bid, then, the
inquiry can be rejected in the system.
In case the customer rejects the inquiry or doesn’t show up before a
specified period of time (this is maintained as the validity period of the
inquiry), the inquiry can be rejected on the system.
A print out can be obtained from the system for the inquiry and given to
the direct customer as an acknowledgement of inquiry or giving the
required pricing details for the item/material/service requested.
In case the proposal team decides that the inquiry can’t be fulfilled, it can
optionally, issue a letter of regret to the customer.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
item supplies
Z113 Inquiry Service Item
Z118 Inquiry Spares
Z114 Inquiry Supply and Services.
4.2.1 Purpose
Also, can issue a quotation to any direct customer either with or without reference to
previously created inquiry. However, the recommended is to create a quotation with
reference to previously created inquiry if it exists in the R/3 system.
Customer Master, Material Master, Pricing Conditions, Output type, Payment terms,
Tex codes, Tax classification.
Prepare Quotation to the customer based on the Inquiry/Tender notice, after firming
up the price to be quoted. Pricing and taxes will be defaulted from the condition
records and optionally can also be manually altered to suit various billing needs.
Payment terms will be selected. Customer requested delivery date would be entered
line item wise.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
Also, as discussed above in the Inquiries pre sales phase, after initial
discussion, if the proposal team decides to bid, then a quotation document
is created in the R/3 system with reference to the previous Inquiry (Tender
Notice).
The total quantity can be subdivided between the schedule lines in different
amounts and relevant delivery dates.
Also, the sub components of an item Bill of Material (BOM) can be made to
be automatically determined for standardized materials/items.
In this case the tender or bidding checklist and other documents have to be
manually managed as this is customer/client specific.
A customer master record is required to effective capture of client
information and for further analysis.
The valid conditions for an item are listed in the item conditions and can be
derived individually from the conditions for the whole document.
Pricing elements can be manually adjusted to suit various kinds of
contracts namely lumpsum, item rate or cost plus.
In case the quotation validity has expired and the tender result is yet to be
declared, or after tender results are declared and if ABC is the L1 bidder,
then appropriate adjustments can be done by changing the existing the
quotation. It could be prices or material/item changes.
In case ABC business requires that a new quotation needs to be created
pertaining to the existing tender, it can create another quotation in the
system with reference to the existing quotation. This is generally done
when there is a major alteration in the tender scope.
To enable authorization/approval of quotation before giving to the
customer an appropriate control can be maintained in R/3 system.
In case ABC is not the L1 bidder or if the customer has cancelled the
quotation or has not turned within the validity of the period, the quotation
would be rejected on the system by manual intervention.
Also in future, if there is requirement that a customer/client just wants a
quote for supply of spares for an already existing plant/project, the same
can be maintained in R/3 system.
Various profitability figures are updated in the background for subsequent
review and analysis. They could be used by the management to take
betterment or corrective decisions for future business operations.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
4.2.5 Item Categories for Quotation at ABC
In the sales order, functions such as pricing and printouts are available. The system
checks whether the material is available for the requested delivery date and if
necessary, transfers the requirements to materials planning. Shipping deadlines and
shipping points are determined in delivery scheduling.
4.3.1 Purpose
Once the customer has confirmed the quotation or has decided to place an order after
inquiry or quotation or directly on first interaction, an order can be created for supply
of material, and or services.
This document would enable ABC to start the work and co-ordinate with project
systems.
Also trading and sale of wind energy power and carbon credits accumulated would be
handled using the same process in R/3.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
4.3.2 Master Data
Customer Master, Material Master, Pricing Conditions, Output type, Payment terms,
Tax codes, Tax classification.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
One can specify the delivery time at header level and these influences the
delivery times for all items in a sales order but you can also enter different
delivery times for single item at item level. To facilitate phase wise supply
of material during project execution.
In case of any changes during the execution of the project the same can be
updated in the order and informed to the customer. This could be
regarding any change in billing plan or price escalations or material
changes.
The change can either originate from ABC and flow as information to the
customer or originate at customer and flow to ABC as information.
Also, an order can be manually cancelled in the R/3 system and
appropriate reason can be maintained in the system. This would terminate
the job and subsequent functions.
Various profitability figures are updated in the background for subsequent
review and analysis. They could be used by the management to take
betterment or corrective decisions for future business operations.
Foreign projects can also be handled with the same order. They would be
handled out of Chennai sales office and Chennai plant. The figures would
be only in INR.
4.3.4 Document for Order at ABC
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
4.4 BILLING/INVOCING
Billing represents the final processing stage for a business transaction in Sales and
Distribution. Information on billing is available at every stage of order processing and
delivery processing.
4.4.1 Purpose
This would effectively handle the various pricing needs vis-à-vis lumpsum, item rate
and cost plus, and billing needs of supply, erection and commission and sales.
This is the base document based on which the customer would make payments.
Debit / Credit memo are used for passing on a credit / debit to customer on account of
material rejection, short supply, price increase / decrease, commissions etc.,
Customer Master, Material Master, Pricing Conditions, Output Types, Tax codes, Tax
classification, payment terms.
You may not modify, copy, reproduce, republish, upload, post, transmit or distribute any material from this document, in any
form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
Also, various types of taxes or charges can be maintained either
automatically or manually like VAT, CST, Service Charge, Education
CESS and higher education CESS depending on supply, Erection and
Commissioning, Civil or work. These taxes would depend upon the
material type and would vary for state to state in few cases.
ABC could also Issue credit and debit memos to the customer in case of
damaged spares being sent or billing variations if accidentally sent
across.
Billing document can either have same or different Bill-to-Party and
Payer.
Order reason can be assigned for the Debit / Credit memos.
ABC can also cancel billing transactions.
The prices and figures in the billing document/invoice would be
transferred automatically to Finance and Control module and capture in
relevant G/L accounts automatically. This is done in the background.
Single or multiple items can be culminated into a single invoice.
Various profitability figures are updated in the background for
subsequent review and analysis. They could be used by the
management to take betterment or corrective decisions for future
business operations.
You may not modify, copy, reproduce, republish, upload, post, transmit or distribute any material from this document, in any
form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
8103000001 8103099999 1030
8104000001 8104099999 1040
8105000001 8105099999 1050
8106000001 8106099999 1060
8107000001 8107099999 1070
8108000001 8108099999 1080
8109000001 8109099999 1090
8110000001 8110099999 1100
8111000001 8111099999 1110
8112000001 8112099999 1120
8113000001 8113099999 1130
5.1.1 Purpose
Most of the country-specific functions for India relate to Financials and Logistics. The
main areas are as follows:
CIN Will be used to maintain, local and central Sales tax, VAT, Service charge,
education CESS and higher education CESS; surcharge based on customer and
material classification and ship-from/to region combination. The relevant G/L account
codes will be defined for the same.
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
Excise duty will be calculated for finished goods and miscellaneous products at the
time of removal of goods from the plant based on chapter ID and excise
customer/material indicators.
Chapter ID
This is to define the chapter IDs and corresponding descriptions as described in the
excise tariff structure.
Sales Taxes
For central sales tax and local sales tax, there are two condition records each, one for
the basic tax (JCST and JLST respectively), and one for surcharges (JCSR and JLSR).
These are all tax conditions and are posted with the account key MWS or MW3. When
you create a condition record for the sales taxes, you must specify a tax code that you
want the tax to be posted under in Financial Accounting (FI).
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
6 GAPS IDENTIFIED AND CLOSED
GAP1:
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
7 TRANSACTION CODES
Transaction T- Code
Create Sales Order VA01
Change Sales Order VA02
Display Sales Order VA03
List of Sales Orders VA05
Sales Order Error Log V.01
List of Incomplete Sales Orders V.02
Display Incoming Orders V.12
Incomplete SD Documents V_UC
Create Billing Document VF01
Change Billing Document VF02
Display Billing Document VF03
Process Billing Due List VF04
List billing documents VF05
Cancel Billing Document VF11
Display Customer (Centrally) XD03
Display Material Master MM03
Output Processing for Mat. Documents MB90
Tax Record Conditions VK11 OVKB
Tax Record Conditions VK12 OVKC
Tax Record Conditions VK13 OVKD
Tax Record Conditions VK14 OVKE
Create Material Price V-41
Change Material Price V-43
Display Material Price V-44
Create Customer-Specific Price V-49
Display Cust.price V-52
Create Cust.disc./surcharge V-61
Change Cust.Disc/Surcharge V-63
Display Cust.Disc/Surcharge V-64
Create Condition VK11
Change Condition VK12
Display Condition VK13
Create Output: Sales VV11
Change output: Sales VV12
Display Output: Sales VV13
Create Output : Billing VV31
Change output: Billing VV32
Display Output: Billing VV33
Create Inquiry VA11
Change Inquiry VA12
Display Inquiry VA13
XYZ Limited XYZ and ABC User Page 42 of 43
© XYZ Limited, 2007, All Rights Reserved.
This document is proprietary to XYZ Limited. XYZ and ABC use
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.
Transaction T- Code
Inquiries list VA15
List of Incomplete Inquiries V.03
Create Quotation VA21
Change Quotation VA22
Display Quotation VA23
Quotations list VA25
List of Incomplete Quotations V.04
Expiring Quotations SDQ1
Expired Quotations SDQ2
Completed Quotations SDQ3
Output from Billing Documents VF31
Return Delivery per Mat. Document MBRL
Output Processing for Mat. Documents MB90
Credit Limit Changes FD24
Change Customer Credit Management FD32
Display Customer Credit Management FD33
Credit Management FRMN
Material & Chapter ID Combination J1ID
Customer Excise Details J1ID
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form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from XYZ Limited.