CASE STUDY
Sales and Distribution (SD) Case Study This case study explains an integrated sales and distribution process in detail and thus fosters a thorough understanding understanding of each process step and underlying SAP functionality .
Product
MOTIVATION
PREREQUISITES
SAP ERP G.B.I. Release 6.04
The data entry requirements in the sales & distribution exercises (SD 1 through SD 8) were minimized because much of the data was stored in the SAP system. This stored data, known as master data, simplifies the processing of business transactions. transactions.
Before you use this case study, you should be familiar with navigation in the SAP system.
Level Undergraduate Graduate Beginner
Focus Sales and Distribution
Authors Bret Wagner Stefan Weidner (edited Paul Hawking)
In the sales order process, we used master data for customers, materials (the products we sold) and pricing to simplify the sales order process. In this case study, we will create the master data for a new customer.
In order to successfully work through this case study, it is not necessary to have finished the SD exercises (SD 1 through SD 8). However, it is recommended.
NOTES This case study uses the Global Bike Inc. (G.B.I.) data set, which has exclusively been created for SAP UA global curricula.
Version 3
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CASE STUDY At the completion of this workshop you will be able to: • • • • • • • • •
Understand the Master data associated with the Sales Distribution process Understand the Organisational Units involved in the Sales and Distribution Describe the basic business process for sales order processing in the SAP ERP system. Create a customer order. Trigger delivery of the sales order Pick and post goods issue. Ship Goods Invoice Customer Understand the role of the Document Flow
Scenario
A customer contacts your company company for a quote for bikes bikes you sell. Shortly after issuing the quote a Purchase Order arrives from the Customer Customer for the Material. You will then create a Sales Order and commence the Delivery process. process. Once the goods have been issued then then you will Invoice the Customer. Once the Customer sends payment you you will commence the Accounts Receivable process.
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CASE STUDY
Organisational Units Defining your organizational structure in SAP System is an important step. It requires thorough analysis of how your organization wants to run your business.
The Sales and Distribution module uses some organizational units that can only represent sales and distribution processes, such as Sales Organisation, Distribution Channel , Division or Shipping Point. Other organizational units, such as company code or plant, are used in Sales and Distribution and in other modules in SAP ERP.
Company Code - an independent accounting unit. Balance sheets and Profit & Loss Statements, required by law, are created at the company code level.
Sales Organisation - an organisational unit within logistics, that structures the company according to its sales requirements. A Sales Organisation is responsible for the Sale and Distribution of goods and services. Each business transaction is processed within a Sales Organisation. It is responsible for distributing goods and services, negotiating conditions of a sale. It is the level to which you sum up sales figures figures for reporting and analysis.
The Sales Organisation must be specified in all sales documents. It is therefore available for all basic functions of SD (such as pricing, availability, etc.).
Distribution Channel -
represents the channel through which sold materials or services reach Customers. Typical Distribution Channels include wholesale, retail and direct sales. Within a Sales Organisation a Customer can be supplied through several Distribution Channels. In addition, the Material Master data relevant for sales, such as prices, minimum order quantity, minimum quantity to be delivered and delivering plant, can differ for each Sales Organisation and Distribution Distribution Channel .
Division - used to represent a product line. In SD, the division allows you to make customerspecific agreements such as: as: partial deliveries, pricing agreements, special payment terms. At least one Division must be defined in the SD module.
Sales Area - a specific combination of Sales Organisation, Distribution Channel , and Division.
Plant - a manufacturing facility, distribution center, or office. A location that stores inventory or renders services.
Storage location - allows the differentiation of material stocks within a plant.
Warehouse - organizational divisions of a plant for the purpose of maintaining materials that are stored in different places.
out shipping activities. Each delivery is Shipping point - a fixed location that carries out processed by only one shipping shipping point.
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CASE STUDY
The organizational units involved in the scenario are displayed below:
US00 Global Bike Inc Company code
UE00 US East Sales Organization Sale Sa les s or or an aniz izat atio ion n IN
WH Wholesale
Internet
Distribution Channel Distribution
BI
BI
Bikes
Bikes
Division
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CASE STUDY
Delivery Structure of GBI
UE00 Sales organisation
US East US00
GBI
Company Code MI00 Plant
Miami
MI00 Shipping point
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Miami
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CASE STUDY
Master Data in Sales and Distribution The Master Data that is used in Sales and Distribution include:
Customer Master Material Master Customer Material Information Record Output Master Condition Master data in Pricing
Customer Master Data on customers is important for both the accounting department and the sales and distribution department. In order to avoid data redundancy, accounting data and sales and distribution data is stored in one master record, the customer master record. The customer master groups data into categories: general data, sales area data, and company code data. It includes all data needed for business transactions and correspondence with the customer. This includes address data, shipping data, sales data, and data for invoice creation.
Customer Master Data General Data Relevant for SD and Accounting Valid for all organisational units
Sales Area Data
Company Code Data
Relevant for SD
Relevant Accounting
Valid for all Sales organisation, Distribution channel and Division
Valid for Company code
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CASE STUDY
SD 1: Display Customer Master Record
Exercise Use the SAP Easy Access Menu to display a customer.
Time 10 min
Task Global Bike Inc. has numerous customers both in the US and in Germany. Display one customer for the US (Philly Bikes) and one for Germany (NeckaRad).
In order to display a Customer , follow the SAP Easy Access menu path: Logistics ► Sales and Distribution ► Customer ► Display
1. Double-click
►
Master Data
►
Menu path
Business Partner
to start this transaction..
On the next screen, the SAP system expects you to enter search criteria such as the customer, the company and sales area data. You can use the SAP ad-hoc help to have the system explain particular fields on the screen. 2.
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Press F1 in Customer field to display the Help for this field.
F1
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CASE STUDY
According to the SAP definition, in the Customer field, SAP expects you to put in the unique key identifying the customer master record. 3.
Click
r
of the Help window to close the window.
As you do not know any customer number in the GBI company, you need to find them. 4.
Click in the Customer field to move the cursor to this field
5. Click
to display search dialog box.
Tabs allow you to specify different search criteria. Values in the text boxes are used to filter the search. On the Customers (by company code) tab, you may enter any information you know of a customer you are looking for. In our case, in the Search term field, enter the three-digit number ( ###) that was given to you by your instructor. Note: Every time the curriculum material material requests you to type in ###, please enter the three-digit number assigned to you for this class. As each student has its own set of data, this number is used to distinguish between individual data sets. Please remember that all participants are working in the sa me GBI company and if not setting their search criteria as requested could see all master data (as in a real company). As for customer master records, if you © SAP AG
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CASE STUDY would like to see once all 1000 copies of each customer, you can leave the Search term field blank.
6. Type ### in the Search term field.
###
7. Click the Company Code field to move the cursor to this field. 8. Press F4 to display the Search screen. 9. Double-click
Global Bike Inc. in Dallas to select this company.
US00
Notice that the Company Code now appears in the Company Code field. 10. Click search.
or press to accept the entries and perform the
This will produce the following screen. s creen. Remember that the customer numbers could be different on your result screen.
11.
Double Click Philly Bikes to select it.
Philly Bikes
The search result window will close, and the customer number for your number (###) of the Philly Bikes will be entered in the Customer field. In addition, the system will automatically fill in the Company Code field with US00. Again, note that your customer number might be different than the one in the screen below.
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CASE STUDY
12. Click or press to display the Customer Master record stored for Philly Bikes. The following screen appears.
On this screen, you can see the General Data of your Philly Bikes customer. In SAP, this means all information of this customer that is relevant to the entire GBI concern (US and Germany) such as global name and address. You can click on the other tabs to see other global data stored for Philly Bikes. You can display only the US-specific data; 13. Click to this screen
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button on the Application Toolbar to move
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CASE STUDY
Note that the Company Code number (US00) has been added to the screen. Data such as Reconciliation account or Sort key are Company Code specific data and different values could be entered for other Company Codes, e.g. DE00 (Germany). You now want to display the details for the customer, NeckaRad in Germany. 14. Click
to return to the Customer Display: Initial Screen .
15. Click the Customer field to move the cursor to this field. 16. Press F4 to display the Search screen. 17. Type Neck* in the Name field.
F4
Neck*
Using a wild card will display all Customers with a name starting with Neck . As the Customer you are looking for is located in Germany you need to remove US00 from the Company Code field if it appears. 18. Press to accept the values and perform the search.
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CASE STUDY A list of customers satisfying your search criteria appear on screen..
19. Double-click NeckaRad with the Customer Number 20(###) to select it.
NeckaRad
The list of Customers disappears and the Customer details after transferred to the Customer Display screen.
20. Click
to display the Customer Details.
What is the region for this Customer?
21. Click
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to return to the SAP Easy Access Menu.
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CASE STUDY
Material Master You are already familiar with the Material Master and the data that is stored from a production planning and materials management view. In Sales and distribution the material master is grouped into several views: Basic data, sales and distribution data, purchasing data, and various further data for engineering/design, accounting, costing, warehouse management, and so on. Basic data is relevant for all areas and is valid for all organizational units within a client. Sales: sales organization data is relevant for sales and distribution. It is valid for the respective sales organization and the distribution channel. Sales: plant data is also relevant for sales and distribution. It is valid for the respective delivering plant.
There is additional data for several other areas. This is valid for various organizational units.
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CASE STUDY
Display a Material Master record Exercise Use the SAP Easy Access Menu to display a Material.
Time 10 min
Task Global Bike Inc. has numerous Materials both in the US and in Germany. Display the Material - Deluxe Touring Bike (Black).
In order to create a sales order, follow the SAP Easy Access menu path: Logistics ► Materials Management Display
1. Double Click
►
Material Master
►
Menu path
Material ►
.
The Display Material (Initial Screen) appears. You need to insert the Material Number for your Deluxe Touring Bike (Black) (Black) in the Material field. 2. Press F4 to display the Search screen. 3. Click
to display the various search options.
4. Click
to select this option.
5. Type Deluxe* in the Material description field. 6. Type *###* in the Material field where ### ids you logon. 7. Click
or press to accept the entries and perform the search.
A list of Materials appear which match your search criteria.
8.
Double Click Deluxe Touring Bike (Black) to select it and transfer it details.
9. Press to continue.
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CASE STUDY The Select Views screen appears. 10. Click Basic Data 1 and Sales Org. Data 1 to select these views.
11. Click
to continue.
The Sales data could be different for different Organisational Units (Plant, Sales Organisation, or Distribution Channel. Therefore you need to specify which which Organisational Units you want to display the Deluxe Touring Bike (Black) details. 12. Type UE00 (US East Wholesale) in the Sales Org. field. 13. Type WH (wholesale) in the Distr. Channel field. 14. Click
to continue.
The Display Material DXTR1### Finished Product screen appears.
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CASE STUDY
Notice that Material Group and Weight of the bike are displayed. 15. Click
to display the Sales data.
Notice that the Organisational Unit information is displayed as this information is Organisational Unit dependent.
Condition Master A company usually sells a material or service at different price conditions for different channel distributions. For example, it gives more discounts for same material or service that sold through wholesale channel than through retail channel (it’s because the minimal order quantity for wholesale channel is usually much bigger than retail channel). The Condition Master defines the prices, surcharges and discounts, freights, and taxes for a Material. This can be dependent on other data.
16. Click © SAP AG
to display the various Conditions for this Material. Page 16
CASE STUDY
Notice that the Price (CnTy) for this Material is USD3,000 and this is based on the variables Sales Organisation (SOrg.), Distribution Channel (DChl) and Material (DXTR1000).
Customer Material Information The Customer-Material Information (master data) is used to record data for a combination of certain Customers and Materials. It stores default data when a customer orders a certain material. You can use the Customer-Material Information record to maintain the following data: Cross-reference from your Customer's Material number to your Material number and the customer's material description. For example if the customer’s product code on an purchase order for a bike is ABC123 it can be matched to your product code for the same bike in the SAP system
Specific shipping information for this Customer and Material (such as delivery tolerances, specifying if the Customer accepts partial deliveries, or the default delivering plant).
Output Master The Output Master is information that is sent to the Customer using various media, such as mail, EDI, or fax. Examples include: the printout of a quotation or an order confirmation, order confirmations using EDI, or invoices by fax. The output can can be sent for various sales and distribution documents (order, delivery, billing document) In the output master data, you define the transmission medium, the time, and the partner function for an output type.
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CASE STUDY
Process Overview
Learning Objective Understand and perform an integrated order-to-cash cycle.
Time 120 min
Scenario In order to process a complete order-to-cash process you will take on different roles within the GBI company, e.g. sales agent, warehouse worker, accounting clerk. Overall, you will be working in the Sales and Distribution (SD), the the Materials Management (MM) and the Financial Accounting (FI) departments.
You start the sales order process by creating a new customer (The Bike Zone) in Orlando. Then, you receive an inquiry which you y ou will process into a quotation. Once the quotation is accepted by the customer you create a sales order referencing the quotation. As you will have enough bikes in stock, you deliver the products sold to your customer, customer, create an invoice and receive the payment. payment.
Process description
The graphic below displays the complete process (17 tasks).
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CASE STUDY
Create a Customer Task Create a new customer.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a new Customer (The Bike Zone) .
In this case study, we will create the master data for a new Customer. Two types of Customer data are stored about a Customer – Sales data and Accounting data. The Customer Master data is created in three groups, or views – General, Accounting, and Sales. Customers can be created centrally, meaning that all views are generated concurrently, or responsibility can be distributed so that different personnel in the accounting and sales areas are responsible for creating and maintaining the data in their respective views. For this exercise, central creation will be used to enter all of the needed data to define a new customer. To create a new customer, follow the menu path: Menu path
Logistics ► Sales and Distribution Customer ► Create
1.
Double Click
► Master
Data
► Business
Partner
►
to move to the Create Customer: Initial Screen.
The following screen appears
2.
Select Sold-to Party for the Account group.
US00 UE00 WH BI
3. Type US00 (Global Bike Inc) in Company code.
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CASE STUDY 4. Type UE00 (US East) in Sales Organisation. 5. Type WH (Wholesale) in Distribution Channel . 6.
Type BI (Bikes) for Division.
7. Click
to accept the entries.
The Create Customer: General Data screen appears 8. Type or Select the following data:
9.
Title
Company
Name:
The Bike Zone
Search Term
###
Street:
214 N Orange Ave
Postal Code:
32804
City:
Orlando
Country
US
Region
FL (Florida)
Transportation zone: details)
Region East (click
Click the screen.
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Company The Bike Zone ### 2144 N Orange Ave Orlando, FL 32804 US Region East
to display further
button on the Application Toolbar to move to this
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CASE STUDY
10. Type 110000 for the Recon. account (reconciliation account)
110000
11. Type 001 in the Sort key field. 12. Click the
001
tab to move to this screen. 0001
13. Type 0001 (Pay immediately) in the Terms of Payment field. 14. Click the screen.
button on the Application Toolbar to move to this
This screen enables you to enter data relevant to the Sales Organisations and Distribution Channels of your company. Data that is stored in this area includes, for example, data on order processing, shipping, and billing 15. Type the following information: Sales order Currency:
USD 1 1
USD
Pricing/Statistics Cust. Pric. Proc.:
1 (standard)
Cust. Stats. Grp:
1 (“A” material)
16. Click the
tab to move to this screen.
17. Type the following data: Shipping Delivery Priority
02 (Normal Item)
Shipping Condition 01 (Standard) Delivery Plant
02 01 MI00
MI00 (Miami)
Order Combination
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CASE STUDY Partial deliveries Max.part.deliveries: 3 3
General transportation data Transportation zone
18. Click the
000000001 (Region East)
Region East
tab to move to this screen.
19. Type the following information: Delivery and payment terms Incoterms Dock
FOB (Free on Board) and Origin Shipping
Terms of Payments
0001 (Payable immediately due net)
FOB
001
Accounting Acct assigmt group
01
01 (Domestic Revenues)
Taxes Tax Classification
20. Click
0 0 0
0 for all 3 tax categories (Tax exempt)
to save the data.
What message appears on the Status Bar?
Customer number
Message
The SAP system will create the master record for the new customer and assign the customer a unique customer number.
21. Click
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cancel icon to return to the SAP Easy Access screen.
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CASE STUDY
Create Contact Person for Customer
Task Create a contact person for a customer.
Time 5 min
Short Description Use the SAP Easy Access Menu to create a contact person.
Now that we have created the master data for our our new customer, The Bike Zone, we can create the master data for a contact person. A contact person is an employee/representative of the new customer’s company. The contact pers on defines a specific person to communicate with when dealing with The Bike Zone. To create a contact person, follow the menu path: Logistics ► Sales and Distribution Contact Person ► Create
► Master
Data
►
Business Partner
►
Menu path
If your customer number is not entered by default, then search for your new customer 1. Click 2.
of the Customer field to display the search screen.
Type ### in the Search Term field.
3. Click
when your customer number is entered.
###
The following screen appears.
4.
Type the following: VIP: Department:
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1 (Management) 0002 (Purchasing)
1 0002 02 0002
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CASE STUDY Function:
02 (Head of Purchasing)
Gender:
Your Choice
Call frequency:
0002 (Weekly)
Last name:
Your Choice
First name:
Your Choice
Person
5. Click
to save your Contact.
Your contact person will be given a unique number.
Contact person number
Record the system message: Message
Click on the exit icon
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to return to the SAP Easy Access screen.
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CASE STUDY
Change Customer Task Change a customer.
Time 5 min
Short Description Use the SAP Easy Access Menu to change a customer.
Now that we have a contact person created for The Bike Zone, we need to assign that person as a business partner within the customer master. In addition, a sales person is assigned responsibility for communicating and working with this customer through the contact person. To create a new customer, follow the menu path: Logistics ► Sales and Distribution ► Master Data ► Business Partner ► Customer ► Change ► Sales and Distribution
Menu path
The Change Customer Initial screen appears with your Customer details.
If the customer number is not entered by default, search for it using the F4 help and the search term ### (your number). Make sure that following values are entered: UE00 for Sales Organization, WH is entered for Distribution Channel, and BI for Division.
UE00 WH BI
1. Press to accept the values and display your Customer 2. Click
on the Sales Area Data screen,
3. Type CP (Contact Person) in the first column under Ship-to party.
CP
4. Press to move to the Number field. 5. Click
to display the search screen.
6. Type your Customer Number if it is not already displayed. 7. Press to commence the search. The Contact Person you just created is displayed. Ensure the record is selected. 8. Click © SAP AG
to transfer the value. Page 25
CASE STUDY 9. Click
to save the changes
10. Click
the cancel icon to return to the SAP Easy Access screen.
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CASE STUDY
Sales Order Processing Effective sales order processing connects all activity to customer demand in a series of integrated processes. The SAP System application component Sales and Distribution Distribution makes this sales order processing possible. The steps in a sales process process are then reproduced by electronic electronic documents that are linked to each other. The SAP sales and distribution process begins with establishing and maintaining customer relationships, and ends with invoicing for delivery of goods or service provided to the customer. Posting the customer incoming payments is part of the SAP System application component Financial Accounting.
Sales Sale Orger Inventory Invento Sourcing Sourci
Pre Sales Activities
Payment
Invoice
Shipping Shippi
Billing
Pre Sales Activities
The Customer Order Management cycle can begin with Pre-Sales Activities. These activities evolve around the establishing and maintaining customer relationships. Typical Pre Sales Activities include:
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Creating and tracking customer contacts Mailing campaigns Answering customer questions received by email. Inquiries Quotations.
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CASE STUDY
Create A Customer Inquiry Task Create a customer inquiry.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a customer inquiry.
Now we will enter an inquiry from our new customer, The Bike Zone. An inquiry is a customer’s request to be provided with a quotation or sales information without obligation. An inquiry can relate to materials or services, conditions, and if necessary delivery dates. Inquiry Details Customer The Bike Zone Materials Quantity Deluxe Touring Bike (black) 5 Professional Touring Bike (black) 2. Required Delivery Date: 1 month from today’s date
To create an inquiry, follow the menu path: Logistics ► Sales and Distribution
► Sales ► Inquiry ► Create
Menu path
This will produce the following screen.
IN UE00 WH BI
Your Organisational details should be transferred transferred automatically. If not you will need to enter them. 1.
Type IN in the Inquiry Type field
2. Click
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to continue.
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CASE STUDY
The Create Inquiry: Overview screen appears. You need to enter the Customer number for the Bike Zone.
3.
Click Sold-to party field to select it.
4. Click 5.
to display the Search screen..
Type ### in the Search term field.
6. Type Orlando in the City field. 7. Click
8.
to perform the search.
### Orlando
Double click The Bike Zone to transfer its values.
You now need to complete the remaining Inquiry details 9.
Type ### in the PO Number field.
10. Type today’s date in the PO date field.
### today’s date one month from today
11. Type today’s date in the Valid from date field. 12. Type a date one month from today in the Valid to date field. The Bike Zone wants a quote on two products – the Deluxe Touring Bike (black) and the Professional Touring Bike (black).
13. Click the Material field to move the cursor 14. Click
the search icon
15. Click the Sales material by description tab.
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CASE STUDY 16. Type the following: Sales Organization
UE00,
Distribution Channel WH Material
17. Click
UE00 WH *###
*###
to list of bicycles.
18. Double Click Deluxe Touring Bike (black) to select it
DXTR1### 5
19. Type 5 in the Order Quantity field.
20. Repeat for the Professional Touring Bike (black).
PRTR1### 2
21. Type 2 in the Order Quantity 22. Click
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to determine the price for this order.
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CASE STUDY
The total price for these 7 bikes to The Bike Zone is 21,400.00, which is given by the Net value. The Expect.ord.val (6,420.00) is a calculated value which takes the Net value of the order and multiplies it by the probability of having an Inquiry from this customer turn into an actual order. To change this probability: 23. Click the scroll icon icon to get get to the Order probability column (two columns right of the Net value column).
The Order Probability of 30% is the default value that was set for GBI for Inquiry documents. The expected order value is then 0.30 x 21,400.00 = 6,420.00. We can change the Order Probability for an Inquiry, which makes sense as different customer inquiries would have different probabilities of becoming an actual actual sales order. 24. Change Order probability from 30 to 75 (%) for each Material
25. Click
75
to update the Inquiry.
Notice the new Expect.ord.val of 16,050.00. 26. Click
to save the Inquiry.
Inquiry number
Your contact person will be given a unique number. Record the system message: Message
27. Click
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to return to the SAP Easy Access screen.
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CASE STUDY
Create Customer Quotation
Task Create a customer quotation.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a customer quotation.
Following the customer’s inquiry, inquiry, a sales quotation is created. created. A quotation presents the customer with a legally binding offer for delivering the requested product or services with certain fixed conditions such as time and price constraints. The Bike Zone would like a firm quote for the items in the inquiry created before. We can do this easily by copying the details from the inquiry into the new quotation. To do this, follow the menu path: Logistics ► Sales and Distribution
► Sales ► Quotation ► Create
Menu path
The Create Quotation: Initial Screen appears. Your Organisational details should be transferred automatically. automatically. If not you will need to enter them: them: Organizational Data Sales organization:
UE00 (US East)
Distribution channel:
WH (Wholesale)
Division:
BI (Bikes)
1.
Type QT in the Quotation Type field.
QT
As you already created an Inquiry for this customer much of the details you require for the Quotation already exist in the system. You can create a Quotation with Reference to another document. 2. Click
on the Application Toolbar.
The following screen appears.
3. Type your Inquiry number in the Inquiry field or search for it. © SAP AG
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CASE STUDY
4.
Click
to copy information from the Inquiry into the Quotation screen.
5. Type ### as PO number 6. Type today’s date in the PO date field. 7. Type a date one month from today in the Valid to date field.
### today’s date one month from today one month from today
8. Type a date one month from today in the Req. deliv.date field . 9. Click
to continue.
This will produce the following warning.
10. Click
to acknowledge the warning.
Another information message will appear in the Status bar or in a Dialog screen.
11. Click © SAP AG
to acknowledge this information and continue. Page 33
CASE STUDY To encourage The Bike Zone to become a loyal customer, you have been authorized to give a $50.00 discount on each Deluxe Touring bike, as well as a 5% discount on the entire order. To add the $50.00 12. Select the Deluxe Deluxe Touring Touring bike line in the the Quotation. 13. Click
the Item conditions icon
You will get a screen that shows the pricing details for your Deluxe Touring Bike.
In SAP, pricing is done using Conditions. The pricing procedure defines which Condition Types are to be used to calculate the final price. Condition type PR00 is a gross price condition. To add a discount; 14. Type K004 (material discount) in the CnTY field under Standard – USA/With.
K004 50
15. Type 50 in the corresponding Amount field.
16. Click
to calculate the new price for the 5 Deluxe Touring bikes.
Note that the discount is now applied to the order. 17. Click
to return to the main quotation screen.
You now need to apply a 5% discount to the entire order; 18. Choose Goto ► Header
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► Conditions
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CASE STUDY
19. Type RA00 (Net Discount) in the CnTy field below Standard – USA/With.
RA00 5
20. Type 5 in the corresponding Amount field.
21. Click
to continue.
Note that the price does not yet include the the 5% discount. 22. Click
activate icon to include the 5% discount.
The 5% discount is now applied. Note that it is applied to the price after the $50 discount per Deluxe Touring bike. 23. Click
to save the new Quotation.
Your Quotation will be given a unique number. Record the system message: Message
24. Click
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to return to the SAP Easy Access screen.
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CASE STUDY
Sales Order Processing A sales order is an electronic document that records your customer's request for goods or services. The sales order contains all information to process the customer's request during sales order processing. Standard orders normally contain:
Customer information Shipping information Pricing for each item Item quantities Billing information
Sales Sa les Order Stru cture
A sales document is grouped into three levels: header, item and schedule line. Data is distributed on these levels as follows:
Sales document header The data in the document header is valid for the entire document. This includes, for example, customer-related data. Sales document items Each item in the sales document contains its own data. This includes, for example, data about the material and quantities ordered. Each sales document can have several several items, while individual items can be controlled differently. Examples include material item, service item, free-of-charge item or text item. Item schedule lines Schedule lines contain delivery quantities and delivery dates and are unique to each item. Every item that has a subsequent outbound delivery in the sales and distribution process must have at least a schedule line.
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CASE STUDY
Create Sales Order Referencing a Quotation
Task Create a sales order with reference to a quotation.
Time 10 min
Short Description Use the SAP Easy Access Menu to create a sales order.
The Bike Zone has agreed to the terms and conditions in the quotation, and wants to order the bikes in the quotation. As a result, we can simplify the order creation process by copying the quotation into a sales order. To create a sales order, follow the menu path: Logistics ► Sales and Distribution
►
Sales ► Order
► Create
Menu path
The Create Sales Order: Initial Screen appears. Your Organisational details should be transferred transferred automatically. If not you will need to enter them: Organizational Data Sales organization:
UE00 (US EAST)
Distribution channel:
WH (Wholesale)
Division:
01 (Bicycles)
1.
Type OR in in the Order Type field.
As most of the details relating to Order have been entered in a Quotation to create the Order based on the Quotation. 2.
Click
OR
on the Application Toolbar.
This will produce the following pop-up search window.
3. © SAP AG
Select the Quotation tab if not already selected. Page 37
CASE STUDY 4. Click the Quotation Quotation field to move the cursor. cursor. 5. Click
to display the search screen
6. Click the Sales document according to customer PO number tab. 7. Type ### in the PO number field. 8. Click
to perform the search.
A screen similar to below appears;
9.
Double Click the your your Quotation,
The number for the Quotation will be entered into the Create with Reference window. 10. Click to copy the information from the Quotation into the Sales Order screen.
11. Type ### in the PO number field.
### today’s date
12. Type today’s date in the PO date field. Note that the Req.deliv.date is copied from the Quotation. 13. Click
to save the Sales Order.
Your Sales Order will be given a unique number. Record the system message:
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CASE STUDY Message
14. Click
to return to the SAP Easy Access screen.
15. Click
to return to the SAP Easy Access screen.
Check Stock Status
Task Check the inventory.
Time 5 min
Short Description Use the SAP Easy Access Menu to check the stock status.
We can check on the inventory level of the bikes in the sales order for The Bike Zone. To do this, follow the menu path: Logistics ► Materials Management ► Inventory Management Environment ► Stock ► Stock Overview
Menu path
►
The following screen appears.
You need to enter the material number for your bikes, 1. Click the Material field top select it. 2. Click
to display the search screen..
3.
to display the search options.
Click
4. Click Sales material by description to select it
UE00 WH *###
5. Type UE00 for Sales Organization. 6. Type WH for Distribution Channel . 7. Type *### in the Material field. 8. © SAP AG
Click
to display the list of Materials. Page 39
CASE STUDY
9.
Double Click Deluxe Touring Bike (black) to select it.
10. Type MI00 (Miami) in the Plant field. 11. Click
MI00
(execute icon) to display the stock level.
This report gives stock levels for the DC in Miami. You can get more detail on the stock of black Deluxe Touring bikes. 12. Click MI00 Miami DC to select it. 13. Click
Detailed Display icon.
This will give you very specific information about the inventory of black Deluxe Touring bikes.
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CASE STUDY
Note the 5 bikes that are part of the sales order. order. 14. Click
to close the Detailed Display window.
15. Click
to return to the main screen.
16. Use the search function to enter the Material number for the Professional Touring bike (black). Click on the execute icon review the stock level for this bike. 17. Click
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and
to return to the SAP Easy Access screen.
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CASE STUDY
Display Sales Order
Task Display a sales order.
Time 10 min
Short Description Use the SAP Easy Access Menu to display a sales order.
With relatively little user input, the sales order for The Bike Zone has been created. The Display Sales Order transaction provides the opportunity to review the order in detail. To display a sales order, follow the menu path: Logistics ► Sales and Distribution
►
Sales ► Order
► Display
Menu path
The following screen appears.
To make sure you have the correct sales order number, use the search function to find it. 1.
Click
to display the Sales Order.
The following sales Order items appear.
2. Select the Professional Touring bike Line item. 3. Click (display availability icon) to explore the stock for this item in detail.
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CASE STUDY
This screen shows that, in this case, there are actually 80 bikes in stock and the Sales Order you are displaying will use 2 of these. Note: your numbers may be different. 4.
Click
This screen displays the elements considered when performing the availability check. For example, Incl. purchase orders is selected, which means that a Purchase Order will be considered as available stock from its receipt date onward. 5. Click
to close the pop-up window.
6. Click
to return to the overview screen.
7.
Select the Deluxe Touring bike line item
8. Click
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(item conditions icon) to display the following screen.
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CASE STUDY
The details of the price calculation for the Deluxe Touring bike are displayed. Note the two discounts that were manually applied applied to this line item. 9.
Click
10. Click
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twice to return to the overview screen. to return to the SAP Easy Access screen.
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CASE STUDY
Start Start Delivery Process
Task Start the delivery process.
Time 5 min
on a Quotation for The Bike Zone Short Description You have created a Sales Order based on customer. You now need to create a delivery delivery document to initiate the shipping activities for this sales order. For a delivery document, the system re-determines the stock availability and the the quantity of ordered items are placed in a scheduled for delivery status..
To start the process that will fulfil The Bike Zone’s order, we need to create a delivery document. To do this, follow the t he menu path: Logistics ► Sales and Distribution ► Shipping and Transportation Transportation ► Outbound Delivery ► Create ► Single Document ► With Reference to Sales Order
The Create Outbound Delivery with Order Reference screen appears. 1. Type MI00 (Miami) in the Shipping Point field. 2. Type a date one week from today (you can use F4 to call up the calendar window). If the sales order number is not entered automatically, you can search for you sales order number using the Sales S ales documents according to customer PO number tab. Enter your PO number (###).
3.
Click
4.
Select the Deluxe Touring bike Line item.
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to continue.
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CASE STUDY
5.
Click
(details icon).
The following screen appears.
This screen shows that the order has not yet been picked. 6.
Click
, to create a Delivery Document.
Your Delivery Document will be given a unique number. Record the system message: Message
7. Click
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to return to the SAP Easy Access screen.
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CASE STUDY
Check Stock Status Time 5 min
Task Check the inventory. Short Description Use the SAP Easy Access Menu to check the stock status.
To check on the inventory for the bikes in the Sales Order for The Bike Zone, follow the menu path: Logistics ► Materials Management ► Inventory Management Environment ► Stock ► Stock Overview
►
The following screen appears:
If the Material and Plant fields are not automatically filled in, click on the Material field, then click click on the search icon . Use the Sales material by description tab with UE00 for Sales Organization, WH for Distribution Channel and *### for Material. Pick the black Deluxe Touring bike. Then, enter MI00 in the Plant field. 1.
Click on
UE00 WH *### MI00
when the Material and the Plant field are correct
The following screen appears:
2.
Click MI00 Miami DC to select it.
3. Click the
Detailed Display icon
The following screen appears:
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CASE STUDY
Note that the 5 bikes for The Bike Bike Zone Sales Order are now showed as Schd. for delivery. 4.
Click
5. Click
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to close the Detailed Display window. to return to the SAP Easy Access screen.
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CASE STUDY
Pick Materials on Delivery Note Task Pick the quantity of materials that have been proposed on the delivery note for The Bike Zone order
Time 5 min
Short Description Use the SAP Easy Access Menu to pick materials
To record the picking of the material, we change the delivery document. To change the delivery document, follow the menu path: Logistics ► Sales and Distribution ► Shipping and Transportation Transportation Outbound Delivery ► Change ► Single Document
►
The following screen appears:
If the Outbound Delivery Document number is not entered automatically, you can search for your Delivery Document using the tab Outbound Delivery: Not Posted for Goods Issue (MI00 for Shipping Point and your your customer number for Ship-to party). 1.
Click
MI00 Your customer number
to continue
The following screen appears
The material delivery quantity is proposed. proposed. You now need to indicate the number number of bikes that will be Picked. 2.
Click
to display this screen if not already displayed.
You now need to identify where the Materials will be located or Picked from. 3. Type FG00 in the Sloc (Storage Location) field for DXTR1###. 4. Type 5 in the Picked Qty field. 5. Type FG00 in the Sloc (Storage Location) field for PRTR1###. 6. Type 2 in the Picked Qty field. 7. Click
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to save your Picking information.
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CASE STUDY
Record the system message: Message
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CASE STUDY
Document Flow The documents in a sales process are linked to each other using the Document Flow. This enables you to access the history and current status of your sales processes at any time.
You can display the Document Flow as a list of linked documents. All preceding and succeeding documents are displayed. This provides an overview of the development development of your sales processes at any time, and you can answer customer questions quickly and reliably.
To view the overall processing status for your Sales Order you can use Document . The Document Flow can be Flow. To access the Document Flow you click accessed from most transaction screens in the Sales process.
1. Click
to display the Document Flow for your Sales Order.
What is the status of your order?
2.
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Click
to return to the SAP Easy Access screen.
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CASE STUDY
Post Goods Issue Time 5min
Task Post a goods issue. Short Description Post goods issue reduces unrestricted stock to reflect the inventory shipped – an inventory control control function. Legal ownership of the goods changes hands from you to the customer as the goods leave the plant (FOB shipping point) or when the goods are received by the customer (FOB destination). From an accounting perspective, both inventory and costs of goods sold are impacted by this transaction. The system reflects that the the materials are no longer available in stock at the time of post good issue regardless of the shipping terms..
To Post Goods Issue (change the possession of the material from GBI to The Bike Zone), follow the menu path: Logistics ► Sales and Distribution ► Shipping and Transportation Transportation Outbound Delivery ► Change ► Single Document
►
The following screen appears.
If the Outbound Delivery Document number is not entered automatically, you can search for your delivery document using the tab Outbound Delivery: Not Posted for Goods Issue (MI00 for Shipping Point and your customer number for Ship-to party).
MI00 Your customer number
1. Click The system returns a message indicating a change was made to the delivery note. Record the system message: Message
2. Click
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to return to the SAP Easy Access screen.
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CASE STUDY
Check Stock Status Time 5 min
Task Check the inventory. Short Description Use the SAP Easy Access Menu to check the stock status.
To see the impact that the goods issue for the bikes in the s ales order for The Bike Zone has had on the inventory position of GBI, follow the menu path: Logistics ► Materials Management ► Inventory Management Environment ► Stock ► Stock Overview
►
The following screen appears:
If the Material and Plant fields are not automatically filled in, click on the Material field, then click on the search icon . Use the Sales material material by by description tab with UE00 for Sales Organization, WH for Distribution Channel and *### for Material. Pick the black Deluxe Touring bike. Then, enter MI00 in the Plant field. 1.
Click on
UE00 WH *### MI00
when the Material and the Plant field are correct
The following screen appears:
Note that the available inventory has changed. changed. 2.
Click MI00 Miami DC to select it.
3. Click the
Detailed Display icon
The following screen appears:
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CASE STUDY
The inventory is reduced from before by the amount that used to appear as Schd. for delivery. 4.
Click
5. Click
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to close the Detailed Display window. to return to the SAP Easy Access screen.
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CASE STUDY
Create Invoice for Customer When you create a billing document, data is copied from the sales order and the delivery document to the billing document. Delivery items as well as order items (for example services) can be references for the billing document. document. The billing document serves several important functions: •
•
It is the sales and distribution document that helps you to generate invoices. The billing document serves as a data source for financial accounting (FI) to help you to monitor and process customer payments.
When you create a billing document, the G/L accounts will normally be updated automatically.
Time 10 min
Task Create a billing document for a customer. Short Description You have issued the goods and now they have to be paid for by the customer. To do this you need to create create a billing document for The Bike Zone relative to the shipment. The billing document permits the recognition recognition of revenue and its associated accounts receivable.
With the delivery complete, the customer can be invoiced. To do this, follow the menu path: Logistics ► Sales and Distribution Process Billing Due List
►
Billing ► Billing Document
►
The following screen appears:
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CASE STUDY 1.
Type UE00 (US East) in the Sales Organisation field.
2. Type your customer number in the Sold-To Party field. If you do not remember your customer number, find it by using the F4 help in the Sold-To Party field and entering your individual number ( ###) in the Search term field and Orlando in the City field. Confirm with . Then, double-click on the one result row. 3.
Click
UE00 Your customer number F4 ### Orlando
to display the Bill List.
To print the Invoice: 4.
Click the individual billing document to select it.
5. Choose
Goto ► Header
► Output
The Output screen appears: 6.
Type RD00 (invoice) in the Output field.
7. Select Print output in the Medium field. 8. Click
RD00 Print output
(communication method icon).
The following screen appears:
9.
Type LOCL in the Logical destination field.
10. Select Print immediately. 11. Click
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LOCL Print immediately
to return to the previous screen.
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CASE STUDY
12. Click
.
13. Select Send immediately (when saving the application) in the Dispatch field. 14. Click
twice to return to previous screens.
15. Click
to save your information.
You are returned to the Maintain Billing Due List.
Notice that the billing document line is no longer longer highlighted. Record the system message: Message
16. Click
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to return to the SAP Easy Access screen.
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CASE STUDY
Display Billing Document and Customer Invoice Time 5 min
Task Display a billing document and a customer invoice. Short Description Use the SAP Easy Access Menu to display a billing document/customer invoice.
The invoice that will be sent to The Bike Zone can be viewed by following the menu path: Logistics ► Sales and Distribution Display
►
Billing ► Billing Document
►
The following screen appears:
If the Billing Document number is not entered automatically, you can find it from the document flow in your Sales Order or with the F4 help in this screen. 1. Choose Billing document ► Issue Output To The following screen appears:
2. Select your Invoice 3. Click
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to see a print preview.
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CASE STUDY The following screen appears:
Once you have checked the invoice then it needs to be sent to The Bike Zone. 4.
Click
5. Click
to close the pop up windos
As SAP is an integrated system it is possible to view the accounting implications of this sale. 6. Click
to see an overview.
The following screen appears:
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CASE STUDY
7.
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Click
to return to the SAP Easy Access screen.
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CASE STUDY
Post Receipt of Customer Payment Time 10 min
Task Post a customer payment receipt. Short Description You have sent the Invoice to the customer for the Sales Order. The Bike Zone has sent payment payment You now need to Post the receipt of a payment to settle the billing. A journal entry is made to Accounts Receivable for Heartland Bike Company and to the bank checking account in the G/L.
After The Bike Zone mails its payment, it needs to be recorded. To do this, follow the menu path: Accounting ► Financial Accounting ►Accounts Receivable Document Entry ► Incoming Payments
►
The following screen appears:
1.
Type today’s date in the Document date field.
2. Type US00 in the Company Code field. 3. Type USD in the Currency Rate field. 4. Type 100000 in the Account field under Bank data.
current date US00 USD 100000 20092.50
5. Type 20092.50 in the Amount field.
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CASE STUDY 6. Click the Account field under Open Item selection to move the cursor to this field. 7. Click
to display the search window.
8. Click the Customers (by company code) tab 9. Type ### in the Search term field for your customer (The Bike Zone). 10. Type Orlando in the City field.
11. Click
to perform the search.
The following results appear:
12. Double click your customer (The (The Bike Zone) to select it. 13. Click
to Post the amount.
The following screen appears:
If the Not assigned field does not show a 0.00 balance, double-click on the 20,092.50 amount to assign the payment to the accounts receivable.
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CASE STUDY 14. Click
to post the payment
Record the system message: Message
15. Click
to return to the SAP Easy Access screen.
The following pop-up window appears:
The data has been saved so there will be no data lost. 16. Click Yes.
Review The Document Flow Time 5 min
Task Review the document flow. Short Description Use the SAP Easy Access Menu to review the document flow.
The document flow tool links all documents that were used in The Bike Zone’s sales order. Again, there are many ways to access the document flow tool. One way is to start by displaying the sales order document. To display the document flow, follow the menu path: Logistics ► Sales and Distribution
►
Sales ► Order
► Display
This will produce the following screen.
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CASE STUDY
If your sales order is not displayed, you can search for you sales order number using the Sales document according to customer PO P O number tab. Enter your PO number (###). 1.
Choose Environment ► Display document flow
The Document Flow appears similar to the screen below.
You can review any of the documents in the Sales Order process by double clicking them. 2.
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Click
to return to the SAP Easy Access screen.
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CASE STUDY
Sales and Distribution Exercise Exercise To sell bikes to a customer. Task An existing American customer, Philly Bikes (3###) has contacted Global Bike Inc to purchase 5 Black Black Deluxe Touring Bikes. They need them delivered 3 days form today’s today’s date. Use the same organisational units as the Case study.
You have now completed the Case Study and have a good understanding of the Sales and Distribution process. Based on the Case Study complete the necessary data entry to complete the Sales and Distribution process for this customer’s requirements. Good Luck.
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