SAP Sales and Distribution

General Overview

Introduction to Sales and Distribution

Process Involved from Manufacturing a Product to selling.

Purchasing of Raw Materials (Steel wires, Steel Bars e.t.c) Machines (Cutting M/c, Grinding M/c, e.t.c) Man power Money Setup(Factory) Sales

Introduction to Sales and Distribution

Basic Sales Process: Inquiry Quotation Order Delivery Billing

Introduction to Sales and Distribution

Key Elements in SAP Sales and Distribution: - Enterprise Structure - Master Data(Customer and Material Master Data)

- Pricing
- Sales Cycle (Inquiry>Quotation>Sales Order>Delivery>Billing)

Enterprise Structure
Enterprise Structure: Company Company Code Plant Sales Organization Distribution Channel Division Sales Group Sales Area

Enterprise Structure
Company Code: Company Code is an organizational unit which maintains set of General Ledger of Accounts for the purpose of Internal and External Reporting. N number of company codes are assigned to Company. Plant: Plant is a place where Manufacturing, Assembling, storing activities take place. N number of Plants are assigned to Company code. Sales Organization: Sales organization is an organizational unit which is responsible for Sales. N number of Sales Organizations are assigned to Company Code.

Distributional Channel: Distribution channel is a channel through which product reaches the customer. N number of Distribution channels are assigned to Sales Organization.

Enterprise Structure
Division: Division is defined as wide range of spectrum products or products with common attribute. N number of Divisions are assigned to Sales Organization. Sales Group: Group of People responsible for sales. Sales group will be assigned to Sales office

Sales Area: Sales Area is a combination of Sales organization, Distribution channel and Division. ------------------------------------------------------------------------------------------------------- Storage Location: Storage location is a location where we store the stock within the plant. N number of Storage location assigned to Plant. Shipping Point: Shipping Point is an organizational unit where Inbound and Outbound deliveries take place.

Master Data
Master Data: Master Data is Data which can be used for longer period and data can be shared by different Modules. Different Types of Master Data in Sales and Distribution: Customer Master Data: Customer Master Data stores Data related to a Customer. It is subdivided into General Data, Company code data, and Sales Area Data. T Code: XD01 Materials Master Data: Material Master Data stores data related to Material. Like Description of the Material, Unit of Measurement, Plant, Division, Profit center, Tax Classification, and price control. T Code: MM01

Pricing
Pricing Determines how the system calculates pricing for a product. Basic Elements of Pricing are: - Basic Price. - Discount - Freight

- Tax
Pricing Based on: - Customer

- Material
- Quantity - Period

Pricing
- SAP Uses Condition Technique for Pricing Determination: - Steps involved in Condition Technique are:

Combination of one or more fields in a table is called as a condition table. For Ex: Customer/Material, Customer/Material/Sales org. e.t.c Access Sequence is a search Strategy the system searches condition record from Most Specific to Most General. Condition Type represents the pricing elements. It controls calculation type, Scales, Condition Supplements, Condition Exclusion, Manual entries allowed or not. E.t.c.

Define Condition Table:

Define Access sequence:

Define Condition Type:

Define Pricing Procedure:

Pricing procedure controls Condition Type or Condition Types are sequentially placed in Pricing procedure. pricing procedure will be assigned to Sales area, Document pricing procedure and Customer pricing procedure.

Assign Pricing procedure.

Sales Cycle
- Enquiry

- Quotation
- Sales Order

- Delivery
Billing

Special Scenarios

- Consignment Sales. - Credit Management - Free Goods - Material Determination

- Listing and Exclusion

- Rebates - Intercompany Billing - Intercompany Stock Transfer - Bill of Materials

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