1. Sales and Distribution Master Data EGN 5620 Enterprise Systems Configuration Spring, 2013

2. Sales and Operations Planning (SOP) covers various activities including the specification of medium term and long term sales volumes and the approximate planning of the production activities that are required to meet these volumes. SOP can be done at the level of finished products or using product groups. Any combinations of materials or even of product groups themselves can be grouped together into other product groups. Sales & Operations Planning (SOP) Overview

3. Sales Planning - result Sales planning results in creating the demand program as an input for production plan Demand program feeds the production plan with the following data elements: ◦Time Buckets ◦Sales ◦Production ◦Stock levels ◦Days supply January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved.3

4. Sales & Distribution Master Data SAP Implementation EGN 5620 Enterprise Systems Configuration Sales & Distribution Master Data SAP Implementation EGN 5620 Enterprise Systems Configuration

5. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.5 Business Process Integration FI MM SD Org Data Rules FI MM SD Master Data FI MM SD FISD MM

6. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.6 Business Process Integration SD Org Data SD

7. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.7 Sales Organization A sales organization belongs to exactly one company code A sales transaction is linked to only one Sales Organization Sales Organization: ◦Sells and distributes products ◦Negotiates terms of sales ◦Responsible for these business transactions SAP allows assigning one or more plants to a sales organization. It allows assigning sales offices and employees to the sales organization

8. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.8 Distribution Channel Retail Distribution Channel (RE) Wholesale Distribution Channel (WH) US Sales S_ _ _ It can be assigned to one or more Sales Organizations It identifies how products and services reach the customer

9. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.9 Division Medical DivisionChemical Division US Sales S _ _ _ It can be assigned to one or more Sales Organizations It is an organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery) It is often used to define product line distribution

10. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.10 Sales Area Sales Area comprised of: ◦Sales Organization ◦Distribution Channel ◦Division Used to link together the organizational aspects of sales to customers Also used for statistical analysis

11. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.11 Sales Area – (continued) Retail Dist Channel (RE) Wholesale Dist Channel (WH) US Sales S_ _ _ Medical Division Chemical Division Medical Division Chemical Division

12. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.12 Internal Sales Organization Typically defines a territory or market Linked to one or more Sales Areas A reference sales organization structure: ◦Sales Offices  Sales Groups ◦ Sales Persons Eastern Sales Western Sales US Sales S_ _ _ Sales Office

13. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.13 Sales Group & Sales Persons Sales Group ◦Sub-division of a sales office, territory or market Sales Person ◦Defined in Human Resources (HR) — Personnel Admin. ◦Specifically defines an individual rather than a position (sales rep.) in sales processing

14. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.14 Internal Sales Organization Eastern Sales (Office) Western Sales (Office) US Sales S_ _ _ Northeast Sales Group Southeast Sales Group Northwest Sales Group Southwest Sales Group Salesperson 1 Salesperson 4 Salesperson 3 Salesperson 6 Salesperson 5 Salesperson 8 Salesperson 7 Salesperson 2

15. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.15 Shipping and Loading Points A shipping point is the top level in the organization for shipping It usually exists physically in a plant A shipping point can be allocated to several plants It can be divided into several loading points (for more specialized handling) A delivery is always initiated from exactly one shopping point. Thus all items of a delivery belong to one shipping point.

16. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.16 Shipping Organization Plant P_ _ _ Freight Dock FD_ _ _ Express Dock ED_ _ _ Rail Dock RD_ _ _ Loading Point 3 Loading Point 2 Loading Point 1 Loading Point 4 Shipping Points

17. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.17 Business Process Integration Master Data SD

18. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.18 Master Data Core Elements - Customers Material Customer Pricing Master Data

19. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.19 Customer Master Customer Master Data is created in Sales Area: Sales Organization Distribution Channel Division US Sales S _ _ _ Distribution Channel - RE Division - 01 Sales Area

20. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.20 Customer Master - (continued) General Data: Address Sales Data: Sales Customer 43 General Data: demographic data Company Code Data: Accounting information Sales & Distribution Data: Sales information

21. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.21 Customer Master A master record must be created for every customer consisting of: ◦General data, ◦Company code data (Financial Accounting-FI), and ◦Sales & Distribution data (Sales and Distribution - SD) Sales/distribution data Sales Shipping Billing Partner Usage Company Code data Account Mgmt Payment transactions Correspondence General data Address Control data Payment transactions

22. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.22 General Data – Address Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail Customer Master General Data – Address

23. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.23 Customer Master General Data – Control Data Account Control ◦Vendor ◦Authorization ◦Trading partner ◦Group key Tax Information ◦Tax codes ◦Fiscal address ◦Country code ◦City code Reference Data/Area

24. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.24 Customer Master General Data – Payment Transactions Bank Details ◦Country ◦Bank Key (country-specific, or the same as the bank account number) ◦Account holder ◦Bank Account ◦Control Key ◦Collection

25. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.25 Customer Master General Data – Marketing Classification ◦Nielsen ID ◦Customer classification ◦Industry ◦Standard Industry codes (SIC) Operating Figures ◦Annual sales ◦Number of employees ◦Fiscal year variant Sales Prospecting (pre-sales) ◦Legal status (e.g., LLC, C, S, or Gov.) ◦Can’t buy state/gov. employee lunch, while prospecting

26. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.26 Customer Master General Data – Unloading Point Unloading Points ◦Unloading point ◦Default ◦Calendar key ◦Default Unloading Point ◦Goods receiving hours

27. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.27 Customer Master General Data – Foreign Trade Export Data ◦Country key ◦TDO (Table of Denial Orders) Date  SAP keeps up to date and sends updates all the time. ◦SDN (Specially Designated Nationals) Date  The last check date for customer on SDN list ◦Boycott Date Usage ◦Mainly civilian usage ◦Mainly military usage Classification ◦Biochemical warfare ◦Nuclear nonproliferation ◦National security

28. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.28 Customer Master General Data – Contact Persons Contact Person ◦Name ◦First name ◦Department ◦Function

29. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.29 Customer Master Company Code – Acct Information Accounting Information ◦Reconciliation Account ◦Sort key  Indicating the standard sort sequence for display of the line items ◦The account number at the dead office Interest Calculation ◦Interest indicator  for automatic interest calculation ◦Interest cycle ◦Interest calculation frequency in months ◦Last interest run Reference Data ◦Previous account number ◦Buying group

30. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.30 Customer Master Company Code – Payment Transactions Payment Data ◦Terms of Payment  (including optional cash discount) ◦Tolerance group Automatic Payment Transactions ◦Payment methods ◦Payment block ◦Alternative payer ◦Grouping key ◦Lockbox ID  (to which customer makes payments to)

31. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.31 Customer Master Company Code – Correspondence Dunning Data ◦Dunning procedure ◦Dunning block ◦Dunning recipient Correspondence ◦Accounting clerk ◦Acct at customer ◦Customer user Payment Notices To ◦Customer– Sales ◦Accounting– Legal

32. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.32 Customer Master Company Code – Insurance Export Credit Insurance ◦Policy Number ◦Institution Number ◦Amount Insure ◦Valid Until ◦Lead Months ◦Deductible

33. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.33 Customer Master Sales and Distribution – Sales Sales Order ◦Sales District ◦Sales Office ◦Sales Group ◦Order Probability (based on statistics) ◦Item Proposal Pricing / Statistics ◦Price Group ◦Customer Pricing Procedure ◦Price List Type ◦Customer Statistical Group

34. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.34 Customer Master Sales and Distribution – Shipping Shipping ◦Delivery Priority ◦Shipping Conditions ◦Delivering Plant ◦Order Combination(allowing to combine orders) Partial Delivery ◦Complete Delivery Required By Law ◦Partial Delivery per Item ◦Max number of partial deliveries ◦Under/Over delivery Tolerances General Transportation Data ◦Transportation Zone

35. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.35 Customer Master Sales and Distribution – Billing Billing Section ◦Subs. Invoice Processing ◦Rebate ◦Price Determination ◦Invoicing Dates Delivery and Payment Terms ◦Incoterms ◦Payment Terms Accounting ◦Account Assignment Group Taxes ◦Tax Classification

36. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.36 Customer Master Sales and Distribution – Partner Functions Partner Functions ◦Partner Function (PF) ◦Partner number (ID) ◦Partner Description Partial list of Partner Functions Types ◦SP – Sold-to-party ◦BP – Bill-to-party ◦PY – Payer ◦SH – Ship-to-party

37. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.37 Business Partners Defines all of the parties involved in a business transaction Differentiates between their roles ◦Customer ◦Carrier ◦Employees ◦Etc.

38. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.38 Business Partners SAP automatically assigns a business partner to the customer master and to any transaction There are four default business partner parties: ◦Payer (a legal entity) ◦Sold-to ◦Ship-to ◦Bill-to They may be the same or different. More business partner parties can be added to carry out additional business transactions

39. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.39 Customer Account Group Customer masters are assigned to a customer account group Through field status maintenance, account groups can be setup for one-time customers, regional customers, internal … The customer account group controls both type and number range assignment for customers

40. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.40 Field Status Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity — create, change, or display

41. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.41 Business Partners Sold-to Party Customer who orders can default for all partner functions — sold-to, ship-to, payer, bill- to Primary type of business partner Independent and cannot be linked to other sold-to partners Sold-to Ship-to Bill-to Payer

42. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.42 Business Partners Ship-to Party Receive delivery Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer

43. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.43 Business Partners Bill-to Party Partner who is delivered the invoice Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer

44. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.44 Business Partners Payer Partner who pays the bill Can be linked to more than one sold-to address Sold-to Ship-to Bill-to Payer

45. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.45 Single & Multiple Ship-to Parties Single ship-to Multiple ship-to’s Single payer Payer: 10Bill-to: 10Ship-to: 10 Sold-to: 10 Payer: 10Bill-to: 10Ship-to: 10 Sold-to: 10 Ship-to: 11

46. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.46 Business Partners Sold-to Bill-to Payer Ship-to Sold-to

47. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.47 Master Data Core Elements - Pricing Material Customer Pricing Master Data

48. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.48Pricing A very robust module in SAP Highly touted “World-class” functionality Very easily tailored to meet business needs Gross to net pricing for material

49. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.49 Standard Pricing Process Standard Pricing ◦Calculates the gross price ◦Then applies –Discounts –Surcharges –Applicable Taxes ◦Calculates the final price Final price = gross price - discounts + surcharges + taxes

50. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.50 Cost-Plus Pricing Process Cost-plus pricing ◦Captures the base cost ◦Then applies –Markup –Discounts –Surcharges –Applicable Taxes ◦Calculates the final price Final price = cost + markup - discounts + surcharges + taxes

51. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.51 Pricing Components Pricing uses tables to match the condition of order to the applicable pricing routine These routines can ◦Add/Subtract amounts, percentages ◦Give dollar, weight, quantity breaks/additions ◦Accrue

52. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.52 Pricing Procedure Pricing uses one of possibly many procedures based upon ◦Item ◦Customer ◦Order type ◦Sales Area The procedure will then apply ◦Prices (Gross) ◦Discounts & Surcharges ◦Freight ◦Taxes

53. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.53 Pricing Procedure – (continued) Pricing conditions for each item on the order Pricing condition uses ◦Pricing procedure ◦Access sequence ◦Conditions type Determines adjustments and price

54. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.54 Select a line Item in Sales Order Determine a Pricing Procedure Contains List of Condition Types Point to Access Sequence Provides the Search Order for Pricing Sales Area S000-RE-01 Doc. Pric. Proc. OR=A Cus. Pric. Proc. 43 = 1 PPEN000 Condition Type PR00 = Price Access Sequence PR02 10 – Customer/material 20 – Price list cat./currency/material 30 – Material 30 – Material Price = $9.50 Pricing Procedure = RVAJUS Pricing Process

55. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.55 Line Item Pricing Proced. Det. CTyp points to Access Seq. Access Seq. points to Cond. Tbls. Cond. Tbls. contain the Item Pricing PPEN000 Sales Area Doc. PP Cust. PP PR00 Points to PR02 Points to Cond. Tables Cust. / Mat. Price List / Cur / Mat. Material N / A $ 9.50 Pricing Process

56. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.56 Price Agreements (for purpose of sales deals) Standard price agreements based on: ◦Product ◦Customer ◦Customer & material ◦Customer group & material group Detailed price agreements ◦Pricing scales ◦Rebates ◦Customer expected price

57. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.57 Credit Limits and Checking Define automatic credit limit checks to your company’s requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on) A credit representative is automatically alerted to a customer’s critical credit situation as soon as order processing starts Employees can be automatically notified of critical credit situations via internal mail

58. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.58 Credit Limits and Checking – (continued) Credit representatives are able to check a customer’s credit situation to decide whether the customer should be granted credit Works in distributed systems ◦Central financial accounting ◦Non-central sales and distribution on several sales and distribution computers

59. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.59 Credit Check You can use this function at any time within service processing to call up information about the current credit status of a customer Credit limit can be checked manually or automatically The system generally checks the planned costs without tax If a customer has exceeded their credit limit, the system issues a warning

60. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.60 Credit Check – (continued) The checks can be carried out at various times during the sales order cycle, from order receipt to delivery You can define a credit check for any valid combination of the following data: Risk category Document credit group Credit control area

61. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.61 Master Data Core Elements - Material Material Customer Pricing Master Data

62. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.62 Material Master – Sales Views (review) Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text Sales Org. 1 View Sales Org. 2 View Barrel Pen

63. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.63 Business Rules Rules SD

64. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.64 Assignment of Sales Area to Pricing Procedure Assignment of Pricing Procedure uses the combination of: ◦Sales Area ◦Document Pricing Procedure ◦Customer Pricing Procedure Each combination of these has a pricing procedure assigned

65. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.65 Availability Check For determining the material availability date, SAP can include specific stocks below, if selected: ◦Safety stock ◦Stock in transfer ◦Quality inspection stock ◦Blocked stock ◦Restricted use stock ◦All movements of stock

66. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.66 Credit Checking Static Credit Limit Check ◦Open Orders ◦Open Deliveries ◦Open Billing documents ◦Open Items (accounts receivable) Dynamic credit limit with credit horizon check (future dates) Credit check to maximum document value (per order)

67. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.67 Shipping Functions Shipping Point Determination ◦The shipping point is selected for each line item based on the shipping point determination process ◦Shipping point selection is based on: –Shipping condition –Loading group –Delivering plant

68. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.68 Shipping Functions Route Definition ◦Define delivery method and the transit time  ‘Dummy’ routes can be used to easily define transit time Route Determination ◦ Proposed route is chosen using –Shipping point –Destination country –Transportation zone –Shipping condition

69. PEN, Inc. EGN 5620 Enterprise Systems Configuration PEN, Inc. EGN 5620 Enterprise Systems Configuration Sales & Distribution Master Data

70. Enterprise Structure in Pen Inc. Plant (P _ _ _) Client (600) Chart of Accounts (C _ _ _) Company Code (C _ _ _) Fiscal Year Variant (2013) Credit Control Area (C _ _ _) Shipping Point (S _ _ _) Sales Org. S _ _ _ Distribution Channel (RE, WH) Division (01) Sales Area (S _ _ _) Controlling Area (C _ _ _) SL10SL20

71. Customer Master Address Data:

72. Customer Master Sales Areas Data:

73. Customer Master Price Data:

74. Customer Master Credit Data:

75. Assign Sales Areas to Price Procedures: To link sales area to a pricing procedure. The RVAJUS pricing procedure is the standard USA pricing procedure with jurisdiction code. In the pricing procedure, prices are assigned to individual line items in sales order as well as discounts, surcharges, etc. SOrgDChlDvDoPrCuPPPriPr S_ _ _RE01A1RVAAPC S_ _ _WH01A1RVAAPC

76. Exercises: (Due date 2/27/2013) 128. Create Sales Revenue Account 129. Create Sales Revenue Deductions Account 131. Create Customer 132. Create Ship-to-Party 133. Assign Ship-to Party to Customer 134. Create Material Prices 135. Create Customer Specific Material Price 136. Create Customer Discount 137. Establish Credit Limit for Customers 138. Assign Sales Areas to Pricing Procedure 141. Create Shipping Point Determination 142. Create Account Assignment Key 143. Check Stock Status 211A: Maintain Cost Center Standard Hierarchy