- 1 -

SAP AG

Pre-Sales ActivitiesPre-Sales Activities

Sales Order ProcessingSales Order Processing

Inventory Sourcing Inventory Sourcing

DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

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What is SAP ERP? ................................................................................................................ 8

The Technology behind SAP ERP .................................................................................... 8

SAP Business Processes .................................................................................................... 8

SAP ERP ............................................................................................................................... 8

The Sales and Distribution Module ....................................................................................... 8

SAP ECC Data & Process Integration ............................................................................... 9

SAP ECC Modules ............................................................................................................ 9

SAP Pre-Configured Industry Solutions ........................................................................... 9

Multi-national Configuration ............................................................................................. 9

The Underlying Structure of SAP - System Wide Concepts ........................................... 10

Enterprise Structure ..................................................................................................... 10

Organisational Structure Example ................................................................................... 11

What is SD? ......................................................................................................................... 12

Organisational units in SD: Definitions .......................................................................... 12

Sales Organisation ....................................................................................................... 12

Distribution Channel ................................................................................................... 12

Division ....................................................................................................................... 12

Sales Area .................................................................................................................... 13

Other Organisational units used in SD: Definitions ........................................................ 13

Shipping Point ............................................................................................................. 13

Loading Point .............................................................................................................. 13

Integrated Organisational units: Definitions.................................................................... 14

Company Code ............................................................................................................ 14

Plant ............................................................................................................................. 14

Warehouse/Storage Location ....................................................................................... 14

Getting Started with SAP ERP - Logging On and Navigation ............................................ 15

How to access SAP .......................................................................................................... 15

Logging on to the ECC system ....................................................................................... 16

SAP EASY ACCESS - Standard Menu .......................................................................... 17

The SAP ECC Window ................................................................................................... 18

The Command Field .................................................................................................... 18

The Menu Bar .............................................................................................................. 18

Toolbars ....................................................................................................................... 19

Title Bar ....................................................................................................................... 19

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Status Bar ..................................................................................................................... 19

Sessions & Transaction Codes ........................................................................................ 19

Common Transaction Codes ........................................................................................... 20

User Profiles .................................................................................................................... 21

Getting Help .................................................................................................................... 21

Exercises ...................................................................................................................... 22

Using this booklet. ........................................................................................................... 22

Exercise 1 .................................................................................................................... 22

The Sales & Distribution Process within the Customer Order Management Cycle ............ 25

Creating a Sales Order ..................................................................................................... 25

Data Types in SAP ECC ...................................................................................................... 28

Transactional Data ........................................................................................................... 28

Master Data...................................................................................................................... 28

Table Data........................................................................................................................ 28

Customer Order Management Cycle ................................................................................... 29

Sales Orders ......................................................................................................................... 29

Types of Sales Document ................................................................................................ 29

The Structure of the Sales Order ..................................................................................... 30

Stock Overview ............................................................................................................... 30

Document Flow in the SAP ECC system ........................................................................ 31

Tutorial Exercise - Sales Order Processing ......................................................................... 32

Create A Sales Order Document Based On A Customer Purchase Order ...................... 32

The Sales & Distribution Process within the Customer Order Management Cycle - ......... 35

Creating a Delivery .............................................................................................................. 35

PART 1 Creating An Outbound Delivery Document .................................................. 35

Delivery Options: ........................................................................................................ 35

The Structure of a Delivery ......................................................................................... 36

PART 2 Picking ........................................................................................................... 37

PART 3 Posting Goods Issue ...................................................................................... 37

Tutorial Exercises ............................................................................................................ 38

Delivery Process Part 1 - Create an Outbound Delivery Document ........................... 38

View the processing status of the Delivery and Order via the Document Flow Tool . 39

Check the Stock levels and inventory status of the an item in the delivery ................ 39

Part 2 - Picking ............................................................................................................ 40

Delivery Process Part 3 - Post Good Issue .................................................................. 40

Check the Stock levels of a material after goods issue has been posted ..................... 41

The Sales & Distribution Process within the Customer Order Management Cycle ............ 42

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Billing the Customer ............................................................................................................ 42

Creating A Billing Document .......................................................................................... 43

The Structure of a Billing Document .............................................................................. 43

Single or collective processing of documents ................................................................. 44

Tutorial Exercises ............................................................................................................ 45

Create an Invoice for the delivery you have released to your customer...................... 45

Display the Billing Document and find details about the invoice. .............................. 46

The Sales & Distribution Process within the Customer Order Management Cycle - ......... 47

Customer Payment ............................................................................................................... 47

Tutorial Exercises ............................................................................................................ 47

Master Data.......................................................................................................................... 49

The origins of data in Sales Documents .......................................................................... 49

Customer Master Data ..................................................................................................... 50

Business Partners and Partner Functions ......................................................................... 51

Types of Partner Function include: ............................................................................. 51

Partner Functions of the Customer Master .................................................................. 51

Customer Master Data and Customer Account Groups .................................................. 52

Material Master Data ........................................................................................................... 53

Material Master Data and Material Type ........................................................................ 53

Customer-Material Master Data .......................................................................................... 54

Item Proposals ..................................................................................................................... 54

Incompletion Log ................................................................................................................ 55

Tutorial Exercises ............................................................................................................ 56

Create a Customer Master Record ............................................................................... 56

Customer Data Sheet ................................................................................................... 57

Change the Customer Master Record .......................................................................... 58

Test the Customer Master Data by creating an Order for the new customer .............. 58

Test the Customer Master Data by creating an outbound Delivery for this customer 59

Create a New Material ................................................................................................. 59

Add Stock of a material into the Warehouse ............................................................... 61

Check the material data is correct by creating a Sales Order for the new material ..... 61

Making Changes to the Material Master ..................................................................... 62

Modifying a Sales Order to maintain incomplete data ................................................ 62

Create a Customer-Material Information Record ........................................................ 63

Check that details from the Customer Material Information Record filter through to the Sales Order ............................................................................................................ 63

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Check the Master Data you have created works properly by proceeding through the remaining processes of the COM cycle ....................................................................... 64

Pricing Conditions, Stock Availability and Delivery Scheduling ....................................... 66

Stock Availability ................................................................................................................ 67

Shipping Point Determination ............................................................................................. 67

Route Determination ........................................................................................................... 70

Stock Availability and Delivery Scheduling ....................................................................... 73

Calculating Stock Availability: Backwards Scheduling ................................................. 74

Forward Scheduling ............................................................................................................. 75

Sales from Stock Available: Sales Order Processing ...................................................... 77

Exercises .......................................................................................................................... 77

Sales from Stock Available: Inventory Sourcing ............................................................ 79

Exercises .......................................................................................................................... 79

Customisation of SAP ECC ................................................................................................. 82

Controlling Sales Documents with Sales Document Type, Item Category and Schedule Item Categories .................................................................................................................... 82

Sales Document Type ...................................................................................................... 83

Functions of the Sales Document Type ........................................................................... 84

Item Category .................................................................................................................. 85

Assigning Item Categories to Sales Document Types..................................................... 86

Schedule Line Categories ................................................................................................ 87

Assigning Schedule Line Categories to Item Categories ................................................ 88

Blocking Documents ........................................................................................................... 89

Delivery Blocks ............................................................................................................... 89

Bill Of Materials .................................................................................................................. 90

Exercises .......................................................................................................................... 91

Configure a new Sales Document type based on the Standard Order (OR) .................... 91

Controlling Sales Documents with the Item Category .................................................... 93

Item Category: Definition and Control ........................................................................ 93

Check Item Category configurations in the IMG to see the settings for each category ..................................................................................................................................... 94

Check Item Category configurations in the IMG to see how the system automatically determines an Item category in a sales document. ...................................................... 94

Schedule Line Category................................................................................................... 95

Create a Sales Document to see the automatic Schedule Line Category Determination ..................................................................................................................................... 95

Customisation of SAP ECC ................................................................................................. 97

Business Partners and Partner Determination ..................................................................... 97

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Business Partners ................................................................................................................. 97

Partner Type .................................................................................................................... 97

Partner Function .............................................................................................................. 98

Account Group ................................................................................................................ 99

Exercises ........................................................................................................................ 100

Create a New Partner Function .................................................................................. 100

Create a Partner Determination Procedure and Assign it to the Customer Master. .. 101

Assign the Partner Procedure to an Account Group .................................................. 102

Test your new Partner Determination Procedure ...................................................... 102

Create a Partner Determination Procedure and Assign it to a Sales Document ........ 103

Customisation of the SAP ECC ......................................................................................... 105

Interface Modification ....................................................................................................... 105

Controlling the Customer Master .................................................................................. 105

Controlling the Material Master .................................................................................... 106

Table Control ................................................................................................................. 106

Exercises ........................................................................................................................ 107

Create and Configure the Customer Master so that certain fields are set as required entry on creation ........................................................................................................ 107

Assign a Number Range to the New Account Group ................................................ 108

Assign a Partner Determination Procedure to the New Account Group ................... 108

Customisation of the SAP ECC ......................................................................................... 110

Incompletion Log .............................................................................................................. 110

Exercises ........................................................................................................................ 111

Configure the Incompletion Log for a Sales Document ............................................ 111

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Useful Icons

ICON

PROPERTIES DESCRIPTION

White tick on green circle

Enter - accepts data input and enables progression to the next screen

Green tick with white clock in background

Execute - used instead of Enter on certain screens to progress to the next screen

Orange floppy disk

Save - saves the current data you are working on.

White back arrow on green circle

Back - takes you back the previous screen

White up arrow on yellow circle

Exit - returns you to the SAP Easy Access Menu

White cross on red circle

Cancel - cancels the current processing being carried out and returns you to the previous screen

Find - used to search for text

Find Next - finds the next matching text item in the list

WARNING Do not change any of the standard configurations within SAP ECC as this will affect everyone elses set up. If you wish to make changes to anything, take a copy of the original and make any modifications to the copy, leaving the original in tact. Remember, any configurations you make to the IMG should be stored with the Prefix Z so they can be identified as non-standard. Do not change anything in the system unless you are instructed to do so in the workbook and you are sure what you are doing. If in doubt, ASK!

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WWhhaatt iiss SSAAPP EERRPP?? SAP ERP is an Enterprise Resource Planning software package which provides the facilities for managing and integrating major business functions such as production, distribution, sales, finance and human resources within an organisation. It is purchased as an off the shelf package which is tailored by a team of consultants to fit the specific needs of an organisation. It replaces the need to buy numerous different pieces of software to manage the individual functional areas of an organisation The aim of SAP ERP is to help companies link their business processes, tying together disparate business functions to synchronise an entire enterprise so that it runs more smoothly.

The Technology behind SAP ERP

The SAP ERP system provides a comprehensive, scalable platform with which companies can conduct their business operations. Strengths in SAP technology that facilitate inter-enterprise collaboration and interoperability include an inherently thin-client, three-tier Internet architecture, more than 1,500 open interface definitions openly published on the Web, an open and flexible component-based architecture. Platform support for parallel application and database servers provides for high scalability. At the same time, the SAP architecture offers customers world-class reliability and security as well as the reassurance of accepted industry standards such as the Extensible Mark-up Language (XML).

SAP Business Processes

The SAP Enterprise Central Component provides more than 1,000 predefined "best-practice" business processes spanning broad functional software requirements. These processes are assembled to create a solution tailored to the users exact requirements; new business processes and technologies regularly become available through partnership with customers, enabling SAP customers to respond quickly to ever-changing business demands. Processes are organised into "business scenarios," which are the one-step business solutions that integrate process functionality, industry-specific knowledge and the necessary services for users to succeed in their particular job role and business endeavour.

SSAAPP EERRPP

TThhee SSaalleess aanndd DDiissttrr iibbuutt iioonn MM oodduullee

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SAP ECC Data & Process Integration

The SAP ECC components are fully integrated and data is held in a central database shared by all SAP ECC applications. This is enabled through the use of common organisational structures throughout the systems. Application data is shared between the individual modules and each time an application module changes, the SAP ECC system automatically updates the data in the other application modules that are affected.

SAP ECC Modules

Some of the modules currently supported are: Sales & Distribution, Production Planning, Materials Management, Human Resources, Financial Accounting and Plant Maintenance,

SAP Pre-Configured Industry Solutions

Aligned with customer requirements, SAP software also offers solutions specific to 19 different industries with functionality designed to address requirements unique to each of those industries business objectives. These industry solutions cover sectors such as Aerospace and Defence; Automotive; Banking; Healthcare; Higher Education; Oil and Gas; Pharmaceuticals;Utilities.

Multi-national Configuration

The presence of the Country Program in each project also allows for multi-lingual, multi-currency processing. If a company is based in several different countries, transactions can be carried out in the appropriate local language and local currency, enabling a company to serve the global marketplace more effectively.

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The Underlying Structure of SAP - System Wide Concepts

Enterprise Structure The enterprise structure of an organisation is mapped to SAP applications using organisational units, e.g. Company Code, Sales Organisation, Distribution Channel. Different organisational units take precedence in each SAP ECC system module making it possible to represent your enterprise and structure your system using terms that make sense to each particular segment of the organisation. The organisational units applicable to SD are shown on the following page. The Enterprise Structure is organised hierarchically in the SAP system and the client is at the highest level and may cover several company codes. Several plants may be assigned to one company code and several warehouses may be assigned to one plant. ENTERPRISE STRUCTURE

Group

Company

Plant

Storage Location

Subsidiary

Service Company

Distribution Channel

Department

Product Line

Client

Company Code

Plant

Sales Organisation

Distribution Channel

Division

Storage Location

SAP

SALES AREA

}

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Organisational Structure Example

An organisations own internal structure is mapped onto the organisational units defined within SAP

Client

Company Code 1000

Company Code 1100

Plant 1000 Plant 1100 Plant 1200

Warehouse 0001

Warehouse 0002

Warehouse 0003

Controlling Area 2000

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WWhhaatt iiss SSDD?? SAP ECCs SD module addresses the sales and distribution needs of an enterprise and covers the areas of pre-sales activity, sales order processing, inventory sourcing, delivery (including transportation), billing and payment. The Sales & Distribution process consists of a series of linked documents (transactions) which generate a process workflow beginning with an initial pre-sales inquiry and culminating in the billing of shipped products. The SD module also enables flexible pricing strategies through rule based pricing; allows customers to make orders using their own product item numbers; checks stock availability and has the ability to initiate purchase requisitions through the Materials Management (MM) module due to integration between modules; has credit checking facilities; provides an EDI interface; has a Sales Information System allowing extensive data analysis etc.

Organisational units in SD: Definitions

Sales Organisation This is used to define national or international sales subdivisions e.g. northern sales region or UK division. A sales organisation represents a selling unit in the legal sense being responsible for product liability. A business transaction e.g. a sale or a delivery, is processed within a sales organisation. A sales organisation belongs to one and only one company code although a company code may have more than one sales organisation assigned to it.

Distribution Channel These are used to define how different products reach consumers e.g. wholesale, retail, industrial, direct sales and allow for different conditions such as differential pricing to be applied to different market sectors. A distribution channel is linked to one or more sales organisations. A customer may be supplied from several distribution channels and different master data can be stored for each distribution channel e.g. price and minimum order quantity may differ between wholesale and retail channels.

Division These are used to represent product lines. A division can serve more than one sales organisation and customer specific agreements can be created for each division e.g. payment terms, partial delivery rules

Presales Enquiry Quotation Order Delivery Transportation

Billing

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Sales Area All customers are allocated to a sales area. A Sales Area is defined using a combination of three elements:

Sales Organisation Distribution Channel Division

A sales area can belong to only one company code and any business transactions carried out can only be linked to a single sales area. By defining sales organisations you can define independently the circumstances under which a sales organisation may or may not sell particular product lines. For example, a customer may be assigned different distribution channels within a sales organisation and different master data and sales agreements may be defined for each channel. Thus if a customer buys the same product from a direct sale or from a distributor, they may be charged different prices for that same item. Although the product is the same we can store different prices, tax rates etc for this product depending on which distribution channel it is sold through.

Other Organisational units used in SD: Definitions

Shipping Point A physical or logical location in a warehouse or plant where employees process deliveries e.g. rail depot or mail room. Each delivery must be allocated one shipping point. A shipping point can service many plants and a plant may be serviced by multiple shipping points.

Loading Point A shipping point may have many loading points, each representing a different location and type of equipment for loading goods of a particular type e.g. a loading point equipped with a crane for lifting heavy goods, a loading point equipped with fork lift trucks etc.

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Integrated Organisational units: Definitions

Company Code A Company Code represents an independent accounting unit, for example a company within a corporate group, for which a balance sheet and profit and loss statement must be maintained. It is the central organisational unit used in financial accounting. Each Company Code has a unique four digit numeric identifier.

Plant A plant produces goods, or renders services or makes goods available for distribution. It can be a manufacturing facility or a warehouse distribution centre. Planning and inventory management are carried out at plant level and plant is the central organisational unit for the SAP ECC Materials Management Module. A plant is linked to a single company code, but a sales organisation may sell products from many plants or warehouses and a plant may support many sales organisations. A storage location is where the product is stored within a plant.

Warehouse/Storage Location A warehouse is one or more physical storage location within a plant that has inventory. Each combination of plant and storage location is allocated a warehouse number and a warehouse can consist of many storage locations.

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GGeett tt iinngg SSttaarr tteedd wwii tthh SSAAPP EERRPP -- LL ooggggiinngg OOnn aanndd NNaavviiggaatt iioonn SAP ERP is a client based system. This enables the operations & business processes of several independent organisations (clients) to operate on one SAP ECC system. During each user session, the user will only be able to logon and access the data of one specified client (organisation) at any one time. Each client has its own data environment and therefore its own master data (e.g. customer and product information) and transaction data (e.g. sales orders and deliveries), charts of accounts and customising parameters. At the end of this unit you will be able to : Log on to and navigate within SAP ECC Create Multiple Sessions Change User Settings Use the various types of Help

How to access SAP

You should be able to access SAP ECC by doing the following: From the Start button Select:

Programs , SAP Front End ,

SAP Logon

The SAP login menu will be displayed. Select the IDES system option and Click Log On

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Logging on to the ECC system

When you log on to SAP ECC you will be presented with the following screen. Enter the following information into the first 3 fields :

The Id of the Client data you wish to work on ( _ _ _ ) Your User Id (ES###) where ### is your assigned number Your Password

(all of the above will be assigned to you by your tutor). Set the Language to EN (English).

- 17 -

SAP EASY ACCESS - Standard Menu

This is the standard entry screen displayed after logon.

You may choose to customise this to suit your own user requirements including

selecting a transaction of your choice to be the default entry screen after logon e.g.

make the sales order screen the default. [via the menu Extras Set Start Transaction]

modifying the tree menu structure to change your view of the structure, for example to

display the transaction codes for each operation [via the menu Extras Settings] creating a Favourites list of the transactions, reports, files and Web sites you use the

most [via the menu Favourites or dragging and dropping] You will be required to do some of these tasks in the exercises at the end of this section.

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The SAP ECC Window

A typical ECC window (this is the one for Create Standard Order VA01) consists of the following common screen elements in addition to the checkboxes, pushbuttons, radio buttons and input fields that you may see in many other applications

The Command Field This is used when you know the transaction code of a particular operation and want to go directly to that operation without going via the menu tree. You can find the transaction code either in the SAP Easy Access Menu tree or in the relevant application under System Status. Further examples of common transaction codes appear later on in this chapter. If the Command Prompt is not visible, click on the arrow head where the Command Field should be to reveal the full field.

The Menu Bar SAP ECC uses the term session to describe a window in which a task is being performed and several sessions may be opened at any one time within a user logon, to allow several tasks to be processed in parallel.

Command field Menu Bar Standard Toolbar Options Icon

Title Bar

Application Toolbar

Status Bar

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Toolbars The icons in the standard toolbar are available on all SAP ECC Screens. Any icons that you cannot use on a particular screen are dimmed. The application toolbar contains those functions available in the current application

Title Bar This shows your current position and activity in the system

Status Bar This displays information on the current system status such as the client you are logged on to and the session number, plus any information/warning/error messages. If the Status detail is not visible, click on the arrow head where the Status information should be to display the full details.

Sessions & Transaction Codes

All of the functions and transactions within SAP ECC can be accessed using menu paths. Due to the vast amount of facilities offered by the software however, the use of menu paths can be time consuming. An alternative to accessing a particular transaction or facility in SAP ECC via the menu paths is to use a transaction code. A Transaction Code (T-Code) is assigned to each function/transaction (not each screen) in the ECC and can be used to access a transaction from any screen in the ECC system. By opening up new sessions and specifying the transaction codes you can process several transactions simultaneously.

From the Standard SAP Easy Access menu you can access a transaction directly by entering the transaction code at the command prompt. e.g. VA01. Once in a transaction you find out its Transaction Code via the

menu path Systerm Status or by clicking the icon on the status bar. Here you can also find out information about which client you are logged on to, which user is logged on and so on. You can opt to view the transaction code names for all transactions listed in the SAP Standard menu via the menu path Extras Settings and choosing to Show Technical Name.

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If you are currently working on one transaction and wish to exit that transaction and call up a new one without having to return to the opening menu type

/n at the command prompt, followed by the T-Code of the new transaction

If you are currently working on one transaction and wish to open up a new session (window) to begin processing on a second transaction without closing down the first for example in order to compare two documents, type

/o at the command prompt, followed by the T-Code of the second transaction

Common Transaction Codes

Code Transaction Code Transaction VA01 CREATE Sales Order XD01 CREATE Customer Master VA02 CHANGE Sales Order XD02 CHANGE Customer Master VA03 DISPLAY Sales Order XD03 DISPLAY Customer Master VL01N CREATE Delivery MMBE STOCK OVERVIEW VL02N CHANGE Delivery SPRO IMG VL03N DISPLAY Delivery VF01 CREATE Billing Document VF02 CHANGE Billing Document VF03 DISPLAY Billing Document MM01 CREATE Material Master MM02 CHANGE Material Master MM03 DISPLAY Material Master

You can find out the T-Code of a transaction once the screen for the transaction is open via the System Status menu path

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User Profiles

The User Profiles menu [accessed via System User Profile Own Data] allows you to change default data settings such as

User address create and maintain personal details such as name, function, room number, telephone number etc

User defaults such as default printer, decimal notation and date display formats User parameters which allow the user to default information into frequently used

fields using Parameter Ids (the technical name of an input field determined by pressing F1 whilst in that field and looking at Technical data) and default values.

Note: To activate the changes you have made to the user defaults you must first log out and then log back in.

Getting Help

There are many ways of getting help within the SAP system. F1 provides help on field, menus, functions and messages F4 provides information on what values you can enter into a field The Help Menu which contains

* The SAP library which is an online library of the entire ECC documentation

* Application Help which gives specific help with the ECC library based on the screen you are on when it is invoked.

* The Glossary which defines technical terms used in SAP ECC * version Release Notes detailing changes between releases of the SAP

system The internet at http://help.sap.com

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Exercises

Using this booklet.

The exercises in this booklet will guide you through a variety of tasks using menu paths. These are shown in the notes as for example: This tells you which folders in the menu structure you need to open in order to access the relevant task. You will usually then be asked to provide information about the data/screen you have been directed to

Exercise 1

1.1 Logging onto SAP ECC

The first time you log on, you will get a prompt in which you must enter your new password twice. Make a note of the following:

CLIENT: USER: PASSWORD: LANGUAGE:

1.2 Opening Additional Sessions

System Create Session or alternatively, /O What is the maximum number of sessions you can have open simultaneously?

1.3 Using T- Codes

Identify the screen titles (refer to the SAP ECC window diagram) and find the T-Codes that corespond to the following menu paths

Tools Administration Monitor System Monitoring User

Overview System Status (Alternatively look at the status bar to see the transaction code once you have entered the initial screen of the transaction) Tiltle of Screen T-Code

Tools Administration Monitor System Monitoring User Overview[ System Status]

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Accounting Financial Accounting Customer Master Records Display Enter Customer 1000 and Company Code 1000 to access next screen Title of Screen T-Code

To help you remember some T-Codes to make navigation easier, choose to display the T-Codes in the menu structure via the menu path Extras Settings and choosing to Display Technical Name.

Help

1.4 Menu Help

If you choose Application Help from the Help menu in the SAP Easy Access screen, which area of the SAP Library does it take you to?

1.5 Search Help

Go to the Display Customer Initial Screen [T-Code XD03 or via the menu path Logistics Sales & Distribution Master Data Business Partner Customer Display Complete]. Use F4 search help or click the icon on the Customer field and using the Customers (General) option tab, find the customer number for the customer whose search term is Becker ## (where ## corresponds to your assigned user number) based in Berlin.

Customer Number for Becker ## (Note the space) 1.6 F1 Help

Use F1 Help on the Customer field. What is the purpose of this field? Write a brief summary of the business-related information

1.7 Use F1 Help on the Company Code field. If you choose the Application Help

button from the F1 help screen, which area of the SAP Library does it take you to?

- 24 -

1.8 Find the parameter Id for the Company Code field using the Technical Information button in the F1 help screen and make a note of it.

User Specific Settings 1.9 Assign a parameter value of 1000 to the Company Code field in your User Profile.

[System User Profile Own Data [Parameters]]. This means that whenever the company code field is displayed, the default value of 1000 will be inserted into it.

1.10 In your User Profile under the Defaults tab, set your logon language to English and

the decimal notation and date format that you desire this will determine how you enter dates and currency values in future.

1.11 Define some favourites in your Access Menu which will make it easier for you to

navigate to common transactions or other objects in the future.

1.11.1 Insert at least one new folder under the Favorites folder [Favorites Insert Folder]

1.11.2 Find and add any two transactions from the Standard Menu to the

corresponding folder(s) by clicking and dragging on the transaction. Alternatively if you know the code for a transaction you choose to Insert Transaction from the Favorites menu.

1.11.3 From the same menu, choose to Add other objects and add the Internet Address http://www.sap.com under the text "SAP Homepage"

In future you will be able to create and use folders and favourite transactions to store your own frequently used transactions to make system navigation easier.

- 25 -

TThhee SSaalleess && DDiissttrr iibbuutt iioonn PPrroocceessss wwii tthhiinn tthhee CCuussttoommeerr OOrr ddeerr MM aannaaggeemmeenntt CCyyccllee

Creating a Sales Order

Effective Sales Order Processing ties all activity to customer demand in a series of tightly integrated processes. The SD module within SAP ECC gives you precisely this kind of sales order processing using a series of linked documents (e.g. order, delivery, invoice) to generate a workflow (predetermined sequence of steps) for sales and distribution. SD may begin with pre-sales activities such as a response to a Request for a Quotation

from a customer. As part of Sales Order Processing, a sales document for example an order is created

which captures and records the customers request for goods or services. The requirements of the Sales Order are transferred and inventory sourcing is carried

out to determine whether the product is available and how it will be supplied (for example will each product come from a plant and if so which one, or will it come from an outside vendor. Do we need to trigger a make-to-order production run to fulfil this order?).

Following this, a Delivery document is created which signals the start of all shipping activities for the sales order. This includes picking the product from the warehouse (creating a transfer order to move goods within the warehouse from the storage locations to the loading bays), packing the product, planning and monitoring shipments, preparing shipping papers and posting goods issue (updating the general ledger by debiting the Cost of Goods sold and crediting the inventory account).

A Billing document is created next resulting in an invoice being output by the system. This updates the general ledger by debiting the customers Accounts Receivable account and crediting the Revenue Account.

The Customer settles the bill and the monies are posted to the general ledger in Financial Accounting (FI) where the Cash account is debited and the customers Accounts Receivable is credited.

SD represents each of these processes with electronic documents (transactions), each linked both to the preceding and subsequent documents (see the diagrams on the following 2 pages).

- 26 -

WHAT IS SD?

Presales Enquiry Quotation Order Delivery Transportation

Billing

SALES

MASTER DATA

ORGANISATIONAL STRUCTURES

CREDIT CHECK (FI)

DEMAND MANAGEMENT

MM PP

Transfer of Requirements

manufacture purchase

picking

packing

goods issue

LEAN WAREHOUSE

MANAGEMENT

warehouse stock

delivery requirements

Presales

Integration points with other modules

SD Elements

CO-PA

ACCOUNTING DOC

(FI)

This diagram shows the flow of transactions in the sales process and the points of integration with other SAP ECC modules.

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Order Management: Business Process Summary

R

M

A T

E

R I

A L

S

M

A N A G E

M

E

N T

Pre-Pre-Sales

Sales OrderSales Order

ProcessingProcessing

Delivery/Delivery/

TransportationTransportation

BillingBillin

Customer Customer payment/

Financial AccountingFinancial

Accounts

Receivable Accounts

Receivable

Scheduling agreement

Scheduling

agreement

InventoryInventory Sourcing

ContractContract

S

A

L

E

S

I

N

F

O

R

M

A

T

I

O

N

S

Y

S

T

E

M

Invoice Invoice

Transfer

Order

Transfer Order

Contact Contact

InquiryInquiry

Quotation Quotation

DeliveryDelivery Goods IssueGoods Issue

Material Stock

Account

Material Stock

Account

ShipmentShipment

PP

RR OO

DD UU CC TT

I IOO

NN

PP

LL

AA NN NN I I

NN GG

Order Order

This slide shows the relationships between the processes in sales order processing in the SAP system. The sequence from top to bottom represents the order of events in the sales process. Each of the boxes represents sales/accounting document. The sections to the left and right of the diagram represent key interfaces between SD and the Sales Information system, Materials Management and Production Planning

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DDaattaa TTyyppeess iinn SSAAPP EECCCC The SAP ECC system works via a very large shared database, containing data covering each of the areas within the Sales & Distribution module (and any other modules such as Financial Accounting, Human Resources etc that have been purchased by the organisation). There are 3 categories of data in the ECC system database

Transactional Data This is the day to day transactional processing information that is put into the system by users or generated by the system. It includes transactions in all applications such as Purchase Orders, Sales Orders, Goods Receipts, Invoices. This data is dynamic and is held in documents

Master Data This is core information that is stored centrally and shared across applications. It is generally static in nature (it rarely changes) and includes such things as the Customer Master, Material Master. Within the Sales & Distribution module, each set of Master Data is divided into three areas:

i. General Data (cross company) namely data which is relevant to all modules, ii. Accounting Data namely data which stores financial information and iii. Sales & Distribution (module specific) Data namely data which concerns the

Sales and Distribution aspects of the system.

Table Data This is data that is specially configured to meet the demands of your business. It includes such things as Payment Terms agreed with customers, Pricing Condition Tables, Route Planning for goods distribution etc.

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SSaalleess OOrr ddeerr ss

Types of Sales Document

There are many different types of Sales Documents (transactions) included in SAP ECC as standard templates which may be configured to suit the particular needs of an organisation, such as:

Standard Order Scheduling Agreement Cash Order Rush Order Free of Charge Delivery Return Consignment Order Credit/Debit memo request

The Sales process typically begins when a customer calls to place an order. When recording an order, SAP SD requires a minimum of information such as the order type, customer ID, customers Purchase Order number, product ID and quantity; it then calculates and completes the remaining information.

Each Sales Document (of which the Standard Sales Order is one type) is assigned to a unique Sales Area. If you dont specify the sales area, the system will derive this automatically using the Sales Area of the Sold-to-Party you enter for the order. If there is more than one possible Sales Area for this particular customer, you will be presented with a selection screen. The Sales Area that an order is allocated will determine certain conditions that are relevant to that order, for example the pricing strategy. If the order is an internet order the price of the goods may be cheaper than if the order were a standard order. You may specify in customisation which types of sales order may be used in which Sales Area.

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The Structure of the Sales Order

Each Sales document consists of tabs which represent different views of data grouped together according to topic.

This Sales document comprises a header screen containing customer and related data about the entire order e.g. order

date, sold-to party, order number. an item screen containing details about the particular item ordered e.g. quantity,

description a schedule line screen containing details about the delivery of the item including

delivery quantity and date. There may be many schedule lines to each item for example if a product is delivered in several part quantities due to stock shortages

As there is so much information stored about each sales document, SAP groups the data under different tab headings to make it easier to locate the particular piece of information you are looking for

Stock Overview

The Stock Overview screen contains detailed information about inventory for each material by company, plant, storage location and batch. Stock may for example be allocated as unrestricted use and therefore available for delivery; set aside for quality inspection; reserved etc. The transaction code for accessing the Stock Overview screen is MMBE

Item Data

Schedule Line Data

Header

Item 1

Schedule Line 1

Item 2

Schedule Line 1

Schedule Line 2

Sales Doc Item Details

Sales Document Header Info

}

STANDARD ORDER

Sold-to Party 2387 Ship-to Party 4876

10 wheel825 20 Item Material Qty

1 01-Nov 20

20 light762 50

1 01-Nov 20 2 01 Jan 30

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Document Flow in the SAP ECC system

As transactions are executed throughout the Customer Order Management Cycle, the progress of a transaction can be checked using the Document Flow facility. Each transaction executed in SAP ECC is given a document number and the document flow tool allows you to verify the current status of that document in the COM cycle and determine which other documents (preceding and proceeding) the document in question is linked to.

Standard Order

Outbound Delivery

Billing Doc Accounting Doc

Document

..WMS Transfer Order 497

..GD Goods Issue:delvy 4900001972

...Accounting Document 100001429

Standard Order 6415

.Delivery 80008765

..Invoice 90004182

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TTuuttoorr iiaall EExxeerrcciissee -- SSaalleess OOrr ddeerr PPrroocceessssiinngg At the end of this topic you should be able to: Create Sales documents. Access different displays of the order Answer customer questions relating to an order Trace an orders status throughout the sales process.

Tip! You can use Match Codes to locate existing data. Press F4 in a field where this icon appears (or click on the icon) and the search window will appear. You can change the matchcode you wish to search on by clicking on the tabs at the top of the window. You can use wild cards (*?* etc) in the search just as you would in other software packages.

Create A Sales Order Document Based On A Customer

Purchase Order

When a customer places an order with a company they may send in a purchase order which details which items they wish to order and on what date they wish to receive the goods. The Sales Order representative within the company will then translate this purchase order into an internal Sales Order on the SAP system. 2.1 A customer has sent you a purchase order which is shown below. This customer

exists in Sales Organisation 1000, Distribution Channel 12, Division 00. Based on this customer purchase order create a Standard Sales Order (of type OR) within SAP ECC via the menu path:

Logistics Sales &Distribution Sales Order Create

Note: Within SAP, a customer who places an order is referred to as the Sold-to Party.

Purchase Order Customer Number (Sold-to Party): t-s50a## Purchase Order (PO) Number: 22-1## Requested Delivery Date: 10 days after todays date

Material Quantity T-AS1## 10 T-AS2## 20

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2.2 Save the order and record the document number. Note: If you omit required data such as the Purchase Order number, you receive a

message stating that the order is incomplete. Click on the edit data button to display the missing fields on the incompletion log, tick those items you wish to complete and click the Complete Data button and input the required data.

Displaying a saved Order and locating information about the order 2.3 Once you have saved the order you will be shown a blank Sales Order screen.

Click on the icon to back out from this screen. Even though the screen is blank you will be asked if you wish to save the data. You may choose no in this instance as you have already saved your data (hence the blank screen ready for a new order to be entered). Once you are returned to the Create Sales Order Initial Screen, choose to Display the newly created sales order via the Sales Document menu. Note: SAP will automatically enter the number of the last order you have created, but if not, enter the number of the order you have saved into the Order field.

2.3 Once you have the order on the screen, find and record below, the terms of payment

for the entire order. 2.4 Display and record the Plant and Route for the second line item. One method of

viewing this information is by selecting the second line item and then clicking on the Shipping tab.

Plant: Route: 2.5 Display and record the confirmed delivery date in the schedule line date for each

item by selecting the item and using the menu path: Goto Item Schedule Lines or by selecting the line item and clicking on the icon Schedule Line for Item at the bottom left of the screen.

Item 10: Item 20:

If only one schedule line appears with a confirmed quantity, it indicates that the customers requested date and quantity can be met. If more than one schedule line exists, the first contains the customers requested data and quantity, and the additional schedule lines contain the confirmed date(s) and quantity(ies).

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Using the Document Flow tool to determine the current status of a Sales Document 2.6 View the document flow for the sales order and record the overall processing

status using the menu path: Environment Display Document Flow, or by clicking the document flow icon.

Order processing status:

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CCrreeaatt iinngg aa DDeell iivveerr yy

There are 3 steps involved in creating the documentation required to deliver goods to a customer (Ship-to Party)

create an outbound delivery document picking (creating a transfer order/picking list) post goods issue

PART 1 Creating An Outbound Delivery Document

When a product is available and ready to be processed in the warehouse, a shipping scheduler organises it (based on criteria such as how the product will be shipped e.g. express mail, overland freight or rail) by creating "deliveries" so that the warehouse can efficiently pick, stage and release (or deliver) the product to the customer.

Delivery Options: A single sales order may be delivered on one delivery. Several orders may be combined into one delivery if they have a common

SHIPPING POINT, DELIVERY DUE DATE and SHIP-TO PARTY, (for example several orders are being dispatched from one place to the same destination on the same day)

A single order may be split across several deliveries if individual items on that order have for example a different ship-to party from other items on the order (for example an order contains items which are to be delivered to different places)

Orders with line items where Shipping Point, Delivery Date or Ship-to Party differ

Order 1

Delivery 1 Delivery 1

Orders with Common Shipping Point Delivery Date Ship-to Party

Order 1 Order 2

Delivery 1

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The Structure of a Delivery The Delivery document comprises a document header containing data relevant to the entire order for example. ship-to

party details, schedules for shipping processing delivery document item details containing information about the particular item(s) to

be delivered. Each item can be controlled differently for example some items may be free of charge, other items may be text items and therefore require slightly different processing to happen

Some of this information may have been copied directly from the corresponding sales order Unlike the order, Delivery documents do not contain schedule lines

Header

Item 1

Item 3

Item 2

Item Data

Sales Doc Item Details

Sales Document Header Info

}

DELIVERY Ship-to Party 4876

10 wheel12" 20 Item Material Qty

20 light762a 50

40 helmet14Rz 12

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PART 2 Picking

Picking is the process via which goods are picked from the shelves or storage locations within the warehouse and transferred to a loading bay ready to be loaded on to the delivery vehicle. Once a delivery document has been created, an instruction is sent to the scheduler in the warehouse to produce a pick list (transfer order) for the goods to be delivered. This is then given to a warehouse worker who picks the product, notes any discrepancies and transfers the product to the shipping area. If necessary, the shipping department updates the delivery and prints the shipping document. A transfer order is created for a warehouse number and several outbound deliveries may be combined into a group of transfer orders so long as the deliveries have the same warehouse number.

PART 3 Posting Goods Issue

This process is carried out at the point where the goods are ready to leave the warehouse on their way to the customer. Once the product leaves the shipping point the delivery is marked as released (a process referred to as "posting goods issue"). On Posting Goods Issue the system will automatically: update the inventory levels in inventory management and the delivery requirements in

materials planning update the value of the inventory in the balance sheets generate the billing due list

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Tutorial Exercises

At the end of this topic you should be able to: Prepare a delivery for the customer Pick the product for the delivery Print the shipping documents and post goods issue Automatically update stock levels when the delivery is released to the customer. Automatically update the general ledger account for material stock when the order is

released to the customer. Automatically update the status so the order is ready for billing.

Delivery Process Part 1 - Create an Outbound Delivery Document 8.1 Using Shipping Point Z0##, a selection date of 20 days into the future and the sales

order number created in your last topic, create a delivery.

(Logistics S&D Shipping & Transportation Outbound Delivery Create Single Document With Reference to Sales Order)

NOTE: if you get an error message telling you there are no schedule lines for that delivery date, you have entered an incorrect delivery date. The default delivery date in the system is todays date, but it is not possible for a standard order to be delivered on the same day as you have created the order. Go back and change the delivery date as instructed above. 8.2 Check the current picking status of this order by switching to the Picking Tab and

record the Delivery quantity and Pick quantity for both line items. Delivery Quantity: Pick Quantity: Currently, the pick quantity should be 0 as you have not yet instructed the warehouse to pick the goods from the shelves. 8.3 Save the Delivery and record the document number.

Note: You can also create a delivery directly from the Create Standard Order Overview screen by following the menu path: Sales Document Deliver

Tip!

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View the processing status of the Delivery and Order via the Document Flow Tool 3.4 Display the document flow of the sales order and record the status of the order and

the delivery via the menu path Environment Display Document Flow or by clicking the document flow icon.

Order (overall processing status): Delivery (overall processing status):

Check the Stock levels and inventory status of the an item in the delivery

3.5 Open an additional window (via the menu path system create session or using /O in the command prompt, or by clicking on the icon )

Display the Inventory Management for product T-AS1## in plant 1000 and record below the quantity of stock scheduled for delivery and the quantity of unrestricted stock currently available in the warehouse. The Stock Overview can be accessed using the Transaction Code MMBE or via the menu for Materials Management. Logistics Mat Mgt Inventory Mgt Environment Stock Stock

Overview

In this instance, instead of clicking on the green tick in the top left corner to proceed to the next screen, you need to click on the icon beneath this ( a green tick with a white clock ) to "execute" the transaction.

Use the scroll bar to naviagte the columns, or double click on the table to find further details about each stock category

Scheduled for Delivery:

Unrestricted:

Return to the main session using

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Part 2 - Picking

3.6 Using the data provided below, create a Transfer Order as a basis for goods movement in the warehouse in order to pick the goods from the storage locations and transfer them to the loading bay.

Logistics S&D Shipping & Transportation Picking Create Transfer Order Single Document

Warehouse Number 010 Plant 1000 Delivery No system generated from 3.3 Foreground/Background Background Adopt Pick.Quantity 1

3.7 Save the Transfer Order and record the document number

Note: Following the Picking process the document flow will have been updated, showing that the WMS Transfer Order had been completed. The pick quantites (Picking Screen) in the delivery will also have been updated, now showing that the Pick Quantity matches the quantity to be delivered (assuming there are sufficient quantities in stock). The inventory levels will also have changed and the quanity of stock scheduled for delivery will have been updated

Delivery Process Part 3 - Post Good Issue 3.8 Release the delivery to the customer by Posting Goods Issue for the delivery

number you saved using the menu path

Logistics S&D Shipping & Transportation Outbound Delivery Change Single Document [Post Goods Issue Button] or Logistics S&D Shipping & Transportation Post Goods Issue Outound Delivery Single Doc. [Post Goods Issue]

. 3.9 Display the document flow [Environment Display Document Flow] for the

delivery. Verify that inventory movement (goods issue) and accounting documents have been created as a result of the post goods issue activity. You can do this by highlighting the Goods Issue document line in the document flow, clicking the

[Display Document] button and then pressing the [Accounting Documents] button .).

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Record the processing status of all other documents appearing in this document flow.

Order (Overall Processing Status):

Delivery (Overall Processing Status):

WMS transfer order (Overall Processing Status):

GD goods issue: delivery (Overall Processing Status):

Accounting document:

The GD goods issue:delivery entry in document flow is the Inventory Management document created to adjust the physical inventory counts from one category of stock to another. By displaying the accounting document and clicking on the detail icon , you will be able to see the accounting documents that were generated and to which accounts in FI they were posted.

Why is the status for the outbound delivery still "Being Processed?

Check the Stock levels of a material after goods issue has been posted 3.10 Display the stocks again for material T-AS1## in plant 1000, to see how posting

goods issue has affected the stock level in each category. You can do this either by switching to the second session opened in 3.5 if you still have it open and choosing REFRESH, or by opening another session (if youve deleted the second session) and accessing the inventory management function via the menu path. Logistics Mat Mgt Inventory Mgt Environment Stock Stock

Overview

How many units are now in : Unrestricted stock?

Scheduled for Delivery:

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BBii ll ll iinngg tthhee CCuussttoommeerr Once an order has been fulfilled and goods issue has been posted, the company is ready to invoice the customer. The billing department creates the invoice based on company policies. Creating a billing document includes copying information from the sales order and the delivery document onto the billing document. Billing supports: The creation of invoices for deliveries and services The creation of credit and debit memos on the basis of credit/debit requests. The cancelling of business transactions The transfer of billing data to financial accounting to aid the monitoring and

management of customer payment. Upon saving the invoice (billing document), accounting documents are automatically created which make postings in the relevant areas of Financial accounting to record how much a customer owes us and what our sales history is. General Ledger accounts are automatically posted (a debit on the customer receivables and a credit on the revenue account). The status in all related sales, delivery and billing documents will be updated and shown in the document flow.

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Creating A Billing Document

The Structure of a Billing Document

Billing documents are similar in structure to sales documents consisting of a Header which contains information for the entire invoice, and line items which contain information about the material being invoiced for example discounts, taxes etc.

Deliveries may be combined based on common criteria such as customer (payer), billing date, destination country to produce 1 billing document

Delivery 1 Cust 1

Deliveries with line items where customer, billing date, or destination country differ can be split to produce separate billing documents

Delivery 2 Cust 1

Bill. Doc 1 F2 90003514

Delivery 3 Cust 2

Bill. Doc 2 F2 90003515

Bill. Doc 3 F2 90003527

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Single or collective processing of documents

An invoice can be created for a single delivery or sales order, or several deliveries or sales orders may be grouped together and billed on a single invoice for example if it relates to several deliveries for the same customer.

in much the same way as : a delivery may be created for a single Order, or may consist of several sales orders with common characteristics combined to form one delivery;

or as a transfer order may be created for a single delivery or multiple deliveries may be combined on one transfer order;

Delivery Invoice

Deliveries Invoice

Order Delivery

Orders Delivery

Delivery Transfer Order

Deliveries Transfer Order

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Tutorial Exercises

To test the billing function of the SAP ECC System, you will review the status of the order and related delivery you have been processing. You will then invoice the customer. To ensure that the billing department can locate the invoice information, you will then display the invoice and verify that the customer is receiving the correct payment terms. You will then be asked to locate information for a line item on the invoice. Finally, you will check the document flow for the order to ensure that the accounting document was created and general ledger accounts were updated. At the completion of this topic, you should be able to: Prepare an invoice for a customer delivery. Display payment terms for an invoice. Automatically create an accounting document that will post to appropriate general

ledger accounts. Update document status.

Create an Invoice for the delivery you have released to your customer 4.1 Using the delivery number created in your last topic, create an invoice (billing

document), via the menu path Logistics S&D Billing Billing document Create.

Once at the create billing screen, enter your saved delivery number in the document field and press

4.2 Save the billing document and record the resulting document number.

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Display the Billing Document and find details about the invoice. 4.3 Display the invoice (billing document) you have just created and record from the

document header, which company code the data has been posted for in accounting ( Logistics S&D Billing Billing document Display)

4.4 Display the document flow for this invoice and record the number of the accounting

document that has been generated. Accounting Doc:

4.5 Display the accounting document and record which accounts in financial

accounting have been posted to by selecting the Accounting Document in the document flow and pressing the button [Display Document]

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CCuussttoommeerr PPaayymmeenntt

The is the final step of the COM cycle. When a customer payment is posted against an invoice in the SAP ECC system, the General Ledger account is updated automatically - the Cash account being debited and the customers Accounts Receivable account being credited.

Tutorial Exercises

At the completion of this topic you should be able to: Post Payments manually The accounting department reviews its outstanding payments for customers on a daily and monthly basis. After making any payment adjustments, customer payments are posted against invoices and each customer account is cleared automatically. Whenever a customer payment and payment advice is received, the accounting department applies the cash (and any cash discounts) to the account which generates an accounting document. Determine the amount the customer needs to pay using their invoice 4.6 Display the billing document created in 4.1 to check the invoiced amount that the

customer has to pay. Assume the customer has paid immediately and therefore according to their Terms of Payment will receive a cash discount. Check and record the final amount and the cash discount amount by viewing the pricing conditions in the billing document header via the GOTO menu

Final amount owing: Cash discount amount:

Note: in a real life situation you wouldnt do this manually. You need to do it for the purpose of this exercise to ensure you pay the full amount owed so that the invoice is settled in full. We are to assume therefore that the customer has sent us the correct monies to cover the invoiced amount minus the appropriate discount for early payment.

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Record the Payment in Financial Accounting The customer pays the final amount of the invoice minus the cash discount. This process actually takes place in the financial accounting module rather than Sales & Distribution, but completes the customer order management cycle. 4.7 Using the data provided below, enter the incoming payment via the menu path

Accounting Financial Accounting Customers Document entry Incoming Payment and choose to Process Open Items. The customer pays the final amount of the invoice minus the cash discount

Document Date Todays Date Posting Date Todays Date Company Code 1000 Currency EUR Bank Data

Account 100009 Amount final amount - cash discount (see 4.9) Open Item Selection

Account T-S50A## The invoice can only be completed successfully when the values from both fields on the bottom right match: Amount entered and assigned If several open items exist for that customer, you can deactivate these by double clicking on the corresponding amount field. 4.8 Save the transaction and record the payment document number

4.9 Display the document flow for the billing document again.

What is the overall processing status for the accounting document?

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MM aasstteerr DDaattaa Master data is data that is relatively static and typically remains in the database for an extended period of time. Data such as customer and product details are typical stored in master data and is shared by the various modules that make up an SAP ECC system, feeding into many of the documents produced by the Sales & Distribution and other modules

The origins of data in Sales Documents

There are several sources from which data may be copied into a sales order, including data from:

Customer Master Material Master Condition Records (e.g. pricing conditions, customer discount, freight charges) Previous Sales Documents e.g. quotations Control Tables e.g. shipping and route determination tables set up in configuration. Output master data determines the format in which information is output e.g. mails,

EDI, fax, print specifications

ORDER Sold -to Party 2300 Ship-to Party 788

Customer Master Data

Item Material Qty 10 wheel124 10 20 helmet45A 15 30 helmet45C 20

Customer Master Data

Material Master Data

Customer-Master Info. Record

Output Master Data

Condition Master Record

Control Tables

Control Tables

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Customer Master Data

The customer master data is stored centrally and shared across application modules between the accounting and sales and distribution departments. It includes all data necessary for processing orders, deliveries, invoices and customer payments. Customer master records are specific to one sales area therefore a customer may have several records in master data pertaining to them, each in different sales areas. This will allow for customers making purchases for example in the retail sales area and the wholesale sales area and will facilitate such things as differential pricing in different market segments. The customer master comprises more than 10 screens of data and these screens are grouped into three categories as shown below:

For ease of use the customer master data is grouped into tabs of related information.

Customer Master

(unique to Company Code & relevant to FI)

Account Mgt Payment

Transactions Correspondence

(common within a Client & relevant to

FI & SD) Address

Control Data Marketing

Unloading Points Contact person

(unique to Sales Area & relevant

to SD) Sales

Shipping Billing

Partner functions

Accounting Data General Data

Sales Data

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Business Partners and Partner Functions

Instead of using the term customer, SAP uses the term Business Partner, to describe a person or organisation with whom you have a business relationship.

A Partner Function is a SAP term and describes the type of relationship you have with a Business partner. For example, instead of just categorising all customers as the same, SAP differentiates between them depending on the type of interaction they have with the organisation. Customers who place an order for example are referred to as a Sold-to Party. Those who take delivery of goods are the Ship-to party. This is useful in situations where the "customer" is a large organisation and someone in the purchasing department places an order which is to be delivered to a contact in a distribution centre and the bill is to be sent to accounts in head office. Details will be stored in master data about all the business partners relating to one transaction so if the company needs to contact someone regarding the transaction, they will contact the relevant person depending on whether it is regarding billing, delivery, an order or some other matter.

Types of Partner Function include:

* Mandatory partner functions

Partner Functions of the Customer Master When creating Customer Master records you must create a Sold-to-Party. When you create this mandatory Business Partner, the system assumes that the Ship to Party, Bill to Party, and Payer are the same as the Sold-to-Party. These defaults may be overridden if this is not the case.

When you create an Order, there are 4 mandatory Business Partner Functions which must be specified. These are

Sold to Party (the person placing the order) Ship to Party (the person receiving the goods) Bill to Party (the person who receives the invoice) Payer (the person who pays for the goods or services)

Sold To Party*

Ship To Party*

Bill To Party*

Contact Person

Forwarding Agent Personnel

Payer*

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When you specify the Sold-to Party in an order SAP ECC will go to the Master Data for this customer and retreive the default Bill-To, Ship-to and Payer partner functions.

Information which is specific to each business partner function may be recorded in its own mater data record, for example the ship-to party is not open to receive deliveries on Sundays.

Customer Master Data and Customer Account Groups

A Customer Master record can contain data which is specific to all the different partner functions for example a Sold-to Party master record will contain information about shipping requirements, payment terms, delivery restrictions etc. Some customers however will have a specific role (function ) in a transaction for example a Bill-to Party and therefore we will not need to store information such as delivery restrictions and shipping information for them as the goods are not being delivered to them. In order to overcome the problem of storing irrelevant data unnecessarily about a customer, each customer that is created can be assigned to a specific account group which determines what views/fields are displayed, suppressed, required or optional when inputting the details of a business partner. For example, if you are creating a Bill-to-Party master record, you dont want to concern yourself with those screens/fields which are only relevant to the Ship-to-Party. Therefore the account group acts as a template dictating which views and fields SAP ECC presents to the user including: Field Selection (which fields are displayed and whether they are required or optional) Number assignment (which number range will be used for each partner function) and

whether or not it will be assigned internally by the system or input externally by the user.

For example, if you are creating a customer master for a Ship-to-Party, you can assign that customer to Account Group Ship-to Party which dictates that only information (fields) relevant to shipping is displayed to the user, and also dictates that the customer will be given an ID in the range of 30000-39999 for example, and that the output for this customer will be a goods delivery document. Some standard Account groups come as part of the SAP ECC system, but these are configurable and you may create additional account groups if necessary, specifying which fields will be presented to a user when a particular type of customer is created. Whenever changes are made to customer master records, the changes do not affect documents already created - the changes only apply to new documents. The exception to this is the address field which if changed, is immediately reflected in any sales documents which are not yet completed. This will prevent deliveries and invoices being sent to the wrong address.

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MM aatteerr iiaall MM aasstteerr DDaattaa The Material Master contains all data required to define and manage materials within the organisation and is used as a source of data for sales order processing throughout the customer order management cycle. It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting and other departments presented through a series of screens in a similar way to that of the customer master. Material Master records are shared by different sales organisations and distribution channels (e.g. retail/wholesale) and plants, therefore when displaying, changing or creating a material master record, you must specify which organisational element (for example which distribution channel) you wish to do this for; this will determine the views/fields presented to you and the authorisation level.

Material Master Data and Material Type

Material Type works in a similar way for the Material Master as the Account Group works for the Customer Master - it is the template for material master records. The Material Type controls which views and data fields the SAP ECC system presents to you for example if the material type is Raw Material, the user will not be presented with the Sales view for this material as it is a material used as a basis for manufacturing products, this material would never be sold. Material type specifies: The views available for this type of material The default Item Category Group for materials of this type The types of purchase orders available (i.e. the POs we use to buy this product in) The default costing method The method of quantity control and value updates of your stock e.g. at company level

for all plants, at plant level, or not at all etc..... Examples of some material types are Material Type Description

FERT Finished Goods (goods we manufacture) HAWA Trading Goods (goods we buy in for resale) ROH Raw Materials (used in manufacturing process) DIEN Services VERP Shipping Materials (packaging)

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CCuussttoommeerr --MM aatteerr iiaall MM aasstteerr DDaattaa In addition to the Customer Master and Material Master records, you can record information that relates to a specific combination of Customer & Material through the use of the Customer-Material Information record.

Any data stored at this level overrides the data stored in the individual customer master and material master. For example, although a customer may specify that they want all their materials to come from the same plant (for instance the one closest to them), they may wish to specify that for one particular material they want it to come from a different plant. In such a case a Custo