SD

VMS Trading Company
Structure Document
Sales and Distribution
Implementation Partner: Allied VMS
Author: VMS SD Team
12th April, 2013
SAP Implementation Project
VMS Trading Company FI Structure Document

13th April, 2013
Copyrights:
Copyright 2013 Allied VMS Technologies. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any
purpose without the express permission of Allied VMS Technologies. The information
contained herein may be changed without prior notice. Some software products
marketed by Allied VMS and its distributors contain proprietary software components of
other software vendors.
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Contents
Page
I. Handling Procedure 1-7

II. Objective:
1-7
III. Overview of Module:
1-8
1-9
Organizational Structure:
1.1 Sales Organization:
1-10
1.3 Distribution Channel: 1-10

1.4 Divivsion:
1-10
1.5 Sales Area:
1-10
1.6 Shipping Point: 1-10

2
Master Data :
2-11
USINESS SPECIFIC DETAILS (Master data)

2.1 Definition:
2-11
2-11
2.2 Cutomer Master Data:2-11

2.3 Customer Master Data Process:
2.4 Configartion Data:Accounts Group:
2-11
2-12
2-12
2.5 Partner Fuction:
2-12
2.6 Customer Master Data and Process Flow: 2-13

2.7 Customer Master Data:-
2-13
2.8 Sap Recommended Process Flow Chart For Customer Creation:

2.9 Integration:-
2-15
2-15
Value Addition:
3
2-15
Customer Material Info Record:
3.1 Condition Master Data:
3-16
3-16
3.2 Conditions and Agreements (Pricing):

3.3 Process defination:
3-17
3-17
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2-14

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3.4 Configuration Data:
3-17
3.5 Pricing Data master Maintaince:

3.6 Pricing conditions (To-Be):
3-17
3-17
3.7 Sap recomended Process Flow Chart:
3-18
Integration : 3-18
4 Sales Order Processing:
4.1 Overview:
3-19
3-19
4.2 Scope of implementation:
3-19
4.3 Business specific Details (sales order Process): 3-20

Definition:
3-20
4.4 Status Anlaysis:
3-20
4.5 Automatic Detemination:

Configuration Data:
3-20
3-20
4.6 Sales Document Type:3-20

4.7 Sales Document Number Ranges: 3-21
4.8 Process Description Sales Order Processing:
4.9 Process Description (To-Be): 3-21
4.10 Sales Order Data:
5
3-22
Shipping: 3-23
Overview (Shipping)
3-23
5.1 Overview:
3-23
5.2 Outbound Delivery:
3-23
5.3 Scope of Implementation:
3-23
5.4 Business Specific Details (Shipping):
3-23
Definition:- 3-23
3-23
5.6 Post Good Issue:
3-24
5.7 Document Flow:
3-24
5.8 Overall Processing Status:
3-24
5.9 Automatic Updating: 3-24
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5.10 Process Description (TO-BE) :

Process Explaination:
3-24
3-25
5.11 Delivery Processing: 3-25

3-25
5.13 Outbound Delivery Data:
3-25
5.14 Process Desciption Delivery Document Processing :3-26

5.15 Process Steps :
6
Billing :
6-26
Overview :
6-26
3-26
6.1 Scope Of Implementation:
6-26
6.2 Business Specific Details (Billing) : 6-27

Definition:
6-27
6.3 Creation Of Invoive : 6-27

6.4 Invoice Cancelation/Reversal :
6-27
6.5 Automatic Updating Of General Ledger & Reports:

6.6 Document Flow:
6-27
6.7 Process Desciption (To-Be):

6.8 Final Invoice :
6-28
6.9 Invoice Data:
6-28
6-27
6.10 Process Desciption Invoice Document Processing : 6-29

6-29
6.12 Process Desciption Collective Invoice Processing: 6-29

6.13 Process Steps:6-29
6.14 Process Desciption Invoice Correction Processing : 6-29
6.16 Process Desciption Pro-forma Invoice Processing: 6-30
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I. Handling Procedure
Document Number:
Document Number
VMS_STDOC_SD
Document date
12-04-2013
Version History:
Version
Number
001
Version date
Summary of Changes
Ref: Minutes of
review
Signature
Date
Signature
Date
Signature
Date
12-04-2013
Reviewers:
This document should be reviewed by:
Name
Mr. Nadeem Ansari
Mr. Faisal Masood
Approvals:
This document requires the following approvals.
Name
Mr. Nadeem Ansari
Mr. Faisal Masood
This document has been distributed to:
Name
Mr. Adnan Bashir Khan
Mr. Nadeem Ansari
Mr. Arshad Ali
II.
Objective:
The Structure Document is a core implementation document for SAP

Implementations. This document defines the important information required for
initialization and setup of the SAP.
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III. Overview of Module:

Sales & Distribution (SD) is one of the core and most-used modules of SAP R/3 products
beside Financial (FI), Controlling(CO), Material Management (MM), and Production
Planning (PP) modules.
The main areas covered by this module and the sub modules are:
Pre-sales activities, including Inquiry and Quotation creation.
Sales Order processing, including Sales Order (SO) creation.
Shipping, including Outbound Delivery document creation.
Billing, including Billing document and invoice creation.

Sales & Distribution (SD) is a module highly integrated with other SAP Modules as FI, CO,
MM, PP & more. This can make SD a complex module, so as part of this document we will
also try to detail a normal sales process and how the activities integrate and are covered by
this module.
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1 Organizational Structure:
1.1 Sales Organization:
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The sales organization has a legal connection in that it represents the unit responsible for selling and therefore is
responsible for Material liability and rights of legal recourse. All business transaction in Sales and Distribution
has tobe processed financially within a Sales Organization.
SALE ORGINZATION
8000
DESCRIPTION
VMS Trading Company
1.3 Distribution Channel:

The distribution channel defines how different Materials reach to the customer, local, export or wholesaler.
Distribution Channel
0001
Description
DC VMS Trading
1.4 Divivsion:
A broad product range that could be sub divided into further grouping of products.
Division
00
10
20
Description
Medicine
Toothpaste
Surgical Instruments
1.5 Sales Area:

Which materials are managed in which organizational unit is determined by the sales area, that is, the
combination of a sales organization, a distribution channel and a division. Sales documents in SAP R/3 System
for VMS Trading Company are processed in one of the following sales areas.
Sales Organization
8000
8000
8000
0001
0001
0001
Division
00
10
20
Sale Area
8000-0001-00
8000-0001-10
8000-0001-20
1.6 Shipping Point:

Shipping point is an organizational element that manages shipping activities. Each outbound delivery is
processed at a shipping point. A shipping point can be a physical location or a logical location. Shipping points
are assigned to plants. A shipping point should have physical proximity to the plant to which it is assigned.
At VMS Trading Company each plant will correspond to a shipping point and all the deliveries for the plant will
be created from the corresponding shipping point. Usually same number is assigned to a shipping point as that it
is assigned to its corresponding sales office and for plant.
Shipping point
8001
Description
Karachi
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8002
Lahore
2 Master Data :
USINEPECIFIC DETAILS (Master data)
2.1 Definition:
Master data forms the basis of sales and distribution processing. Data about the products as well as about the
business partners (customer) is the basis for sales processing. Sales processing with the SAP R/3 system
requires that the master data has been stored in the system.
2.2 Cutomer Master Data:

Customer master is a centrally shared data which can be used by all the logistics modules as well as the finance
module. Information retained in the customer master record can both be descriptive and have functional control
depending on the usage. The customer master data has three views:
General Data is maintained independent of the organizational elements. The data found here is
common to all organizational structures within the client.
Sales Area Data is relevant for sales and distribution processes and is specific to a given sales area.
Company Code Data is relevant for financial accounting processes and is specific for a given
company code.
A single customer master includes all the data necessary for processing orders, deliveries, invoices and customer
payments.
2.3 Customer Master Data Process:

A customer is a business partner with whom the company sells the goods.
In sales and distribution, products are sold to business partners (customer). Data about the products as well as
about the business partners is the basis for sales processing. Sales processing with the SAP R/3 System require
that the master data has been stored in the system.
In addition to sales and distribution, other departments of the company such as accounting or materials
management access the master data.
The processing of business transactions in sales and distribution is based on the master data. In the SAP R/3
System, business transactions are stored in the form of documents. These sales and distribution documents are
structured according to certain criteria so that all necessary information in the document is stored in a systematic
way.
2.4 Configartion Data:Accounts Group:

The nature of the customer and the required fields in the Customer Creation screen largely depends on the
configuration of the Account Groups. Following account groups (with their number ranges) have been
maintained for VMS TRADING COMPANY.
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Account Group
100- direct sale
110- indirect sale
120- Intercompany sales
Description
100- direct sale
110- indirect sale
120- Intercompany sales
Number Range
From
100000
200000
300000
To
199999
299999
399999
2.5 Partner Fuction:
Business partners having different business functions in sales and distribution cycle will be
configured as partner functions. Following partner functions will be configured for VMS
TRADING COMPANY.
Different business partners may carry out one or more partner functions. For this reason, you can
assign individual business partners a number of partner functions.
Data on partner functions is stored in master records and can be used in Financial Accounting and
Logistics.
A business partner can be a customer and a vendor at the same time if, for example, your customer
also supplies goods to you or if a vendor is also one of your customers. In this case, you must
create a customer master record and a vendor master record for the business partner. You can
create a link between the two master records by entering the vendor number in the customer master
record and the customer number in the vendor master record.
In SAP, there are several terminologies to maintain business partner in the system:
. Business Partner
Person or company that places an order for goods. The

sold-to party can also perform the functions of the payer,
bill-to party or ship-to party. In case of VMS TRADING
COMPANY the Distributor/ MRS will be entered as
sold to party
Person or company to where we deliver the goods. The

ship-to party can also perform the functions of the payer,
bill-to party or sold-to party. In case of VMS TRADING
COMPANY the Distributor/ MRS will be same as ship
to party (Automatically Driven from the Sold to Party)
Person or company to where we send the invoice

document for goods. The bill to party can also perform
the functions of the payer, ship-to party or sold-to party.
In case of VMS TRADING COMPANY the Distributor/
MRS will be same as bill to party (Automatically Driven
from the Sold to Party)
Person or company who pay the transaction .The payer

can also perform the functions of the sold to, ship-to
party or bill-to party. In case of VMS TRADING
COMPANY the Distributor/ MRS will perform the
function of payer therefore account receivable will be
booked against the Distributor/ MRS (Automatically
Sold To Party
Ship To Party
Bill To Party
Payer
Description
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Driven from the Sold to Party)
In most cases all the four functions are the same. So when sold to party is created, all other
functions would be automatically created. We can create more than one ship to party for one sold
to party/ Customer.
2.6 Customer Master Data and Process Flow:
System will always assign an internally generated number to each customer created
Name, address and any other contact information is entered in General Data Screen
All customers would be created for a sales area, which comprises the sales organization, distribution
channels and the division.
Sales tax number and National Tax number will also be maintained in the customer master data
Payment terms will be maintained wherever applicable. This information will be copied to subsequent
documents (Sales Order, Delivery Order etc.). Following are the Incoterm that will be used in VMS
TRADING COMPANY.
Incoterm
FOB
Description
Free on board
Following are the Payment Terms (optional and variable) that are provided by FI/CO.
Serial No.
A001
A002
A003
A004
A005
Payment terms
Advance payment
Immediate Due
7 Days
15 Days
30 Days
2.7 Customer Master Data:Any individual, company or government institution that has purchased or is purchasing any product or service
from VMS TRADING COMPANY will be accorded the status of a customer with the presumption that such
person or company or government institution will continue to purchase from VMS TRADING COMPANY in
future as well. In SAP system a master record will be created for each customer. Following fields have been
identified as critical and have been set to mandatory.
Field Name
General Data
Customer Name
Customer Address
Customer City
Company Code Data
Reconciliation Account
Purpose
Unique customer name
Customers current address
Customers city of operations
Recon account in G/L that is updated on postings for
invoice
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Sales Area Data

Delivering Plant
Sales District
Sales Office
Sales Group
Customer Group
Output Tax Classification
Location from where the stock is issued to the customer

A geographical sales district
A physical location (for example, a branch office)
A group of sub-Zones who are responsible for sales
processing
A Group of Territories
Identification for customers tax liability
Apart from the above fields, there are other standard fields maintained in the customer master for recording and
maintaining additional details for any customer. However these fields are not mandatory and if no data is
recorded, the system will not prompt the user for incomplete processing. However, while creating customer
master; if the fields mentioned in the table are not filled with the relevant data then the system will not let the
user to proceed further.
2.8 Sap Recommended

Customer Creation:
Process
Flow
Chart
For
2.9 Integration:
Business partners having different business functions in sales and distribution cycle will be
configured as partner functions. Following partner functions will be configured for VMS
TRADING COMPANY.
Partner Functions
1.
Sold-to-Party
2.
Ship-to-party
3.
Bill-to-Party
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4.
Payer
Different business partners may carry out one or more partner functions. For this reason, you can
assign individual business partners a number of partner functions.
Data on partner functions is stored in master records and can be used in Financial Accounting and
Logistics.
A business partner can be a customer and a vendor at the same time if, for example, your customer
also supplies goods to you or if a vendor is also one of your customers. In this case, you must
create a customer master record and a vendor master record for the business partner. You can
create a link between the two master records by entering the vendor number in the customer master
record and the customer number in the vendor master record.
Credit Management enables for issuing a credit limit for each customer. Every time an invoice is
posted (created in FI-AR), the system then checks whether the invoice amount exceeds the credit
limit. Information functions such as the sales summary will help to monitor the customers credit
situation.
Accounts Receivable (FI-AR) component manages accounting and the Sales and Distribution (SD)
component manages sales processing. Credit limit for customers are maintained in the credit
control area.
General information functions are also available for use with credit checks.
Automatic credit checks will be configured, which allows saving the sales order but blocks the
same for delivery.
During order processing, the credit representative automatically receives information about a
customers critical credit situation.
Accounts Receivable department is in a position to review the credit situation of a customer

quickly and accurately.
Credit limits for the customer can be maintained in multiple currencies.
The credit master sheet displays such credit data as the current and maximum credit limit, and the
total of deliveries, orders, and invoices outstanding. The credit overview shows certain additional
data including dunning data, open items and texts on the customer.
Value Addition:
SAP system has one of the most enhanced master data management systems and organizes data on
a single platform. Master data may be created discretely at remote locations however system
accumulates all data in the central master data repository.
For VMS TRADING
COMPANYAccount Groups have been maintained to provide a consistent number range for the
customers created in the system, enabling unique identification of the customer and homogenize
master data maintenance.
Standard SAP provides enhanced master data management capability that allows maintaining
customer specific data at three levels. The customer master data components are copied into sales
documents whenever a customer is called in the document. All or any customer related values
maintained in the master could be copied into the sales document.
All customer codes will be created as subsidiary ledger account to a natural account code of trade
receivables, which will considerably reduce trial balance maintenance.
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All customers will be created in a company code specified within Financials module. The company
code will be assigned to a credit control area, which will enable automatic credit control. Therefore
credit limits can be maintained centrally for each customer code.
All changes in the customer master will be traceable from a log containing records of all updates
and updated values. System maintains a log detailing the user responsible for the updates.
Customer specific Payment Terms can be maintained in the customer master which can be
defaulted into sales order document and subsequently to the billing document.
Customer specific Output Tax Classification can also be maintained which would automatically
exempt or calculate taxes in the sales order and subsequently in the billing document for the
customer as per his tax classification.
Incoterms can be maintained specifically for each customer in the customer master. The system
will default the incoterms during sales order processing from the master data; however it can be
manually updated to match the incoterms of the LC during sales order processing.
3 Customer Material Info Record:

The customer info record defines the inspection requirements for a specific customer/material combination (per
sales organization). You can use the customer info-record to override the default customer specifications. If you
have maintained the customer data in the customer-material information record, you can access material using
this customer data rather than having to find the actual material number. When you create the information
record, the system copies some of this data from the customer master record and the material master record. You
can change this data in the information record. If a customer-material information record exists, the data defined
there has priority over data in the customer and/or the material master record and is copied accordingly, into the
individual items.
3.1 Condition Master Data:

Condition master data/records allow the user to maintain pricing conditions in the SAP system. These conditions
will be retrieved and pricing elements will be copied at the time of processing sales documents. All the pricing
elements of day-to-day business transactions at VMS TRADING COMPANY required for automatic processing
will be maintained in the system as condition records. Conditions records actually represent a set of allowable
circumstances that apply in the event of a sales transaction. The circumstances may include individual pricing
elements or the combination of different pricing elements. These pricing elements include material, customer,
date, Price, Surcharge/discounts, freights & tax etc.
The following pricing conditions types will be maintained for VMS TRADING COMPANY in pricing master
data. Any other pricing condition might be included if identified during the realization phase.
3.2 Conditions and Agreements (Pricing):

3.3 Process defination:
The term pricing is used broadly to describe the calculation of prices (for external use by customers) and costs
(for internal purposes, such as cost accounting). Conditions represent a set of circumstances that apply when a
price is calculated. For example, a particular customer orders a certain quantity of a particular product on a
certain day. The variable factors here - the customer, the product, the order quantity, and the date (Key
combination at the time of generating sales orders). The information about each of these factors can be stored in
the system as master data. This master data is stored in the form of condition records.
Agreements can be defined in the system in various different ways:
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In the customer master record (for example, Term of payments required)

As individual master data: rebate agreements
3.4 Configuration Data:

Master data for pricing can be maintained under the Key combination of the following fields:
Sales Organization
Division
Sold-to Party
Material Number
3.5 Pricing Data master Maintaince:

Pricing rate of the Brand (Product) should be maintained in master data, so that during order processing, the
system will get the price valid for that particular customer or product in specific period.
3.6 Pricing conditions (To-Be):

Condition Type
Description
ZPRP
EX-Factory Price
MWST
Sales Tax with amount according to Government Regulation
ZFRE
Freight
ZNET
Net Price
Pricing conditions will be maintained by Finance Department.
3.7 Sap recomended Process Flow Chart:
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Integration :
Each price relevant condition type is assigned to an account key. Account key is assigned to a GL
account in FI-SD integration on the basis of Customer Account Group, Material Account Group and the
Account Key, all condition values are posted to the appropriate GL account on the basis of the account
key.
System enables to provide output tax relevance on the basis of customer or material master. Condition
type for output tax MWAS is configured in a way that it posts to output tax payable account only after
ascertaining that the material and customer combination allows the posting to output tax account.
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4 Sales Order Processing:
4.1 Overview:
The sales order is a document between a sales organization and a sold-to party about delivering
products for defined prices, quantities and times. In the sales order, we record the customer number,
the product customer ordered and the delivery date if necessary. Then the system automatically
proposes data from the relevant master records
4.2 Scope of implementation:

The scope of implementation at VMS TRADING COMPANY for the aforementioned data involves usage of
this information in the Logistics arena.
Sales Order
Topic
Sales
Yes
Basic Functions
Pre Sales
Outline Agreements (Customers)
Sales Orders
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No

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4.3 Business specific Details (sales order Process):

Definition:
The sales order is a document between a sales organization and a sold-to party about delivering products for
defined prices, quantities and times. In the sales order, we record the customer number, the product customer
ordered and the delivery date if necessary. Then the system automatically proposes data from the relevant master
records:
From the customer master record of the sold-to party, the system proposes sales data such as internal
organizational element assigned to the customer, shipping data such as default delivering plant, and billing data
such as term of payment. In addition, the system copies customer-specific master data about texts, partners, and
contact people at the customer site.
For each material in the sales order, the system automatically proposes data from the relevant material master
records, such as availability check, tax determination, and weight and volume determination.
4.4 Status Anlaysis:

The system always maintains a status of each sales order. The sales team can use this feature to answer customer
queries on dispatch of his material as well as use to track the progress of the pending dispatches at their end.
4.5 Automatic Detemination:

While creating an order in SAP, the system automatically determines the following and hence reduces the
chances of human error.
Standard Pricing
Ship to Party
Bill to Party
Payment Terms
Shipping Point
Delivering Plant
Configuration Data:
4.6 Sales Document Type:
The following sample document types are used to process customer orders
Sales Order Type
Usage
Standard Order
This order type is used to handle Distributor Sales and MRS Sales
Cash Order
This order type is used to handle Distributor Sales and MRS Sales on Cash
Basis
Inter Company order This order type is used to handle intercompany Sales
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4.7 Sales Document Number Ranges:

Following sales documents and their respective number ranges have been defined for VMS TRADING
COMPANY.
Sales Document
Number Range
Sales Documents
Usage
From
To
ZPOR
(Standard Order)
To create and record all standard sales

orders for Medicine Division,
0000000001
0999999999
4.8 Process Description Sales Order Processing:

Customer places a purchase order along with the credit terms already approved by VMS TRADING
COMPANY; as such the all sales not accompanying payments or customer with no reflection of credit balance
in the AR will be processes against credit. For credit management to function appropriate it is necessary to
maintain credit master data in the system. System will enable the user to save the sales order in case the credit
limit maintained in the system is exceeded; however system will not allow to process delivery of such sales
orders.
4.9 Process Description (To-Be):
Customer sends a Purchase Order with or without demand draft.

Sales department / International division receive a customer purchase order for goods.
Sales department / International division evaluate the customer purchase order and input the
details in the SAP system after determining the correct sales order type by using transaction
code VA01.
If the sales order is created with reference to a quotation sent earlier the quotation number
will be referenced into the sales order before sales order creation. Once all sales relevant
details have been punched in the system runs standard validations (e.g. material availability,
pricing conditions, shipping point and payment terms etc.). System also validates the credit
limit from the credit master data maintained. If the net value of the sales order is within the
credit limit set as per the credit master data maintained, then the system proceed with saving
the sales order and else system do save the order but with a credit limit check. Then the order
needs to be released by finance department after updating the credit limit or updating the
customer credit limit in the credit master data.
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System generates two printout of sales order document on saving the sales order. File one
copy in record and send the other to the customer .
Intimate the shipping point (factory) for delivery via email
4.10 Sales Order Data:

Following Information is entered at the Sales Order Level:
Information
Triggers
Sales Order Number
Internally Generated Number of SAP
Sales Order Date
Current date will be default.
Sold to Party
Customer code
Ship to Party
The ship to party is going to be determined on basis of sold to party
Material Number
Proposed automatically through item proposal but can be over

written as long as the material is included in the Material Listing of
that customer
Material Quantity
Required quantity of the material
Payment Terms
Payment terms will be proposed from Customer Master
Pricing
Pricing will be determined automatically
Division
The concerned product group
Customer Sales Tax Information
Proposed from Customer Master
Material Sales Tax Information
Proposed from Material Master
Currency
Default from Customer Master
Pricing Date
Current date will be default
Delivering Plant
Will be determined automatically from Customer / Material Master
Shipping Plant
Will be determined automatically
5 Shipping:
Overview (Shipping)
5.1 Overview:
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After the sales order is booked into the system the dispatch is due. Dispatch processing in SAP would lead to the
activity of issuing the goods from shipping point to the customer. The dispatch note will be generated with
reference to the sales order. The system provides the functionality of generating a delivery due list, this list is
date specific.

Outbound Delivery commences the shipping process. The outbound delivery document can either be created
with or without reference to the Sales Order. During the outbound delivery process the shipping planning
information is recorded, status of shipping activities is monitored and the data which is accumulated during the
process of shipping is documented.
5.3 Scope of Implementation:

this information in the Logistics and Finance arena.
Outbound Delivery
Topic
Yes
No
Sales Order Processing

Delivery Processing
Delivery Updating
Post Good Issue Process
5.4 Business Specific Details (Shipping):

Definition:Shipping:Shipping is defined as
The act or business of transporting goods

Outbound Delivery commences the shipping process. The outbound delivery document can either be created
with or without reference to the Sales Order. During the outbound delivery process the shipping planning
information is recorded, status of shipping activities is monitored and the data which is accumulated during the
process of shipping is documented.

Subsequent to the outbound delivery process is the process of Post Goods Issue. This process involves posting
of the actual quantity of goods delivered from the Shipping point that may differ from the quantity to be
delivered. In order to post goods issue, all necessary shipping activities must be completed.
5.7 Document Flow:
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Tracking has been made easier through the functionality of Document flow. SAP user can view not only the list
of preceding and subsequent documents (if any) but can also view those documents provided they have the
necessary authorization.
5.8 Overall Processing Status:

System also provides the facility of checking the overall processing status of a delivery document at any point of
time. The status of delivery document remains Open as long as the document has not been posted (post goods
issue). It changes from Open to Being Processed at the time when delivery has been posted. And when sales tax
invoice is created against that delivery the system automatically converts it into Completed. The status of sales
order will also change; keeping record that delivery against sales order has been created.
This functionality of processing status would help the dispatch staff and the sales department to keep an on-line
track of the deliveries.
5.9 Automatic Updating:

Once the dispatch document has been completed, the system would cater for automatic updating of
the material inventory. In addition to this, all the reports, which are relevant to dispatch, would also be
updated to show the dispatches.
5.10 Process Description (TO-BE) :
Process Explaination:
5.11 Delivery Processing:
The delivery order will be created with reference of sales order. The user can also view the orders to be
delivered from SAP standard List of outbound deliveries report.
At Depot, outbound delivery will be created against the sales order. On the basis of Delivery Note (Outbound
Delivery Output) physical Load of Liquid will be done. After loading, physical checking of Liquid is same as
AS-IS Process.
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After Delivery Note and Liquid Load Out, the Depot Gate Office staffs physically re-check the Liquid Load and
also Delivery Note will be cross checked with sales order.
Post Goods Issue will be done by the Depot Gate Office Staff after all verification. Following registers are
maintained automatically by the system.
Stock Balance Reports (Aerated Water Register)

Delivery Related Reports (Distributor/ MRS Wise Liquid Reports)
Once the Post Good Issue will be done in system then the finished good stock will be updated and the cost of
goods sold will be recorded in system.
5.13 Outbound Delivery Data:

Information Required
Delivery Number
Triggers
Dispatch Note Date
Sold to Party Code
Customer code
Sold to Party Name
Customer Name from Customer master data
Ship to Party Code
Ship to party will be copied from Sales Order (Same as Sold to

Party)
Ship to Party Name
Name from Ship to master data (Same as Sold to Party)
Material Number
Will be copied from Sales Order
Material Description
Material Quantity
Confirmed quantity will be copied from Sales Order.
Division
Incoterms (Delivery Terms)
5.14 Process Desciption Delivery Document Processing :

Delivery process is initiated when a sale department completes the sales order processing and transfers the
requirements to the shipping point. The delivery is completed when goods are loaded into the vehicle, shipment
documents are updated, goods are posted for issuance and shipment cost document is processed. The result of
delivery processing is a delivery challan, which is sent to the customer as a token of goods issuance against the
sales order of that particular customer.
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After Order processing completed, intimation is sent to Logistics department for delivery via email or
telephone or logistics department can daily run a delivery due list to confirm the number of orders to be
shipped in a day.
Logistics department process delivery due list and create deliveries via transaction code VL01N in SAP
system
System generates loading slip prints (2 copies), one of which is filed for record and other is used for
loading.
After loading is completed, logistics department creates shipment document using via transaction code
VT01N.
Also process shipment costs via transaction code VI01
Goods Issue is posted and loading slip is updated automatically. Print outs of updated loading slip and
delivery challan are generated which are sent, along with goods, to customer.
4 Billing :
Overview :
Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on
billing is available at every stage of order processing and delivery processing. Billing component include
creation of invoice on the basis of order or deliveries for complete or partial delivery quantities.
6.1 Scope Of Implementation:

this information in the Logistics and Finance arena.
Billing
Topic
Yes
No
Basic Functions
Processing Billing Documents
Invoices
Account Assignment
Condition Records
6.2 Business Specific Details (Billing) :

Definition:
A sales document used to bill a customer for a goods delivery. Deliveries which are carried out on the basis of
sales orders are invoiced to the customer. If no complaints are made about the delivery, the business transaction
is considered complete from the sales point of view.
When you create an invoice, you can refer to an order, a delivery, individual order or delivery items, or even
partial quantities within an order item or a delivery item.
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6.3 Creation Of Invoive :

Invoice can only be created with reference to a dispatch note and sales order.
There are two ways to initiate Invoice processing which are as follows;
Individual Creation: Invoice can be created individually against each delivery order
Billing Due List: Multiple invoices can be created at once through a Billing Due list which will list all
deliveries for which invoice is yet to be created.
6.4 Invoice Cancelation/Reversal :

Reversal of Invoice can be created when the Invoice has not been sent to the customer. In case where Invoice
has already been sent to the client a credit note will be issued against the Sales Tax Invoice.
6.5 Automatic Updating Of General Ledger & Reports:

Once the Invoice document has been created, the system would cater for automatic updating of the Account
Receivable ledgers and Account Payable ledgers. In addition to this, all the reports, which are relevant to Sales
and Receivables, would also be updated.
6.6 Document Flow:

Tracking has been made easier through Document flow. SAP user can view not only the list of preceding and
subsequent documents (if any) but can also view those documents provided they have the necessary
authorization. You can also branch into customer and material master, credit master and sales reports from there.
6.7 Process Desciption (To-Be):
6.8 Final Invoice :

Final invoice to the customer is generated on the basis of sales order that is created in the system, now you can
bill the customer for the quantity present in the sales order. In this process two outputs will be taken from the
system one is of Sales tax invoice that is created Product Wise in order to calculate aging customer/ material
wise and the other is of Commercial invoice with detail of all materials in the delivery order (material code
wise). The number of Sales tax invoice and commercial invoice will be same.
In case of MRS Sales, the invoice process will be same instead of Pending Invoice in the AS-IS Process.
6.9 Invoice Data:

The following information is maintained in the INVOICE
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Information Required
Triggers
Invoice Number
Invoice Date
Sold to Party Code
Customer Code will be copied from Sales Order
Sold to Party Name
Customer Name will be copied from Customer Master
Bill to Party Code
Bill to party will be copied from Sales Order (Same as Sold to Party)
Bill to Party Name
Bill to party Name will be copied from Customer Master (Same as Sold
to Party)
Payer Code
Payer will be copied from Sales Order (Same as Sold to Party)
Payer Name
Material Number
Payer Name will be copied from Customer Master (Same as Sold to

Party)
Material Description
Material Quantity
Will be copied from Dispatch note.
Division
Pricing
Will be copied from Sales Order. Following are the conditions will have
an impact on invoice where applicable
Sales Tax
MRS Commission/ Surcharges
Price-Off
Discount (Like in Key Accounts)
Surcharge (Like in Key Accounts)
Customer
Sales
Tax
Information
Material Sales Tax Information
Currency

6.10 Process Desciption Invoice Document Processing :

VMS TRADING COMPANY might need to process individual invoice documents for a delivery document as
per the business need. SAP system enables to print both single and multiple sales invoices as the case may be.
After completion of delivery processes (3.6.1), intimation is sent to Billing department where billing
process starts.
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Relevant user inputs the delivery number of the delivery document to be billed and executes the billing
process in SAP system using transaction code VF01.
After inputting the delivery number, user creates invoices by executing a billing run.
System generates invoices printout of each invoice.
One copy is filed for record and the other send to the customer.
6.12 Process Desciption Collective Invoice Processing:

VMS TRADING COMPANY might need to process collective invoice documents for a delivery document as
per the business need. SAP system enables to print both single and multiple sales invoices as the case may be.
6.13 Process Steps:
After completion of delivery processes (3.6.1), intimation is sent to Billing department where billing
process starts.
Relevant user executes collective billing process in SAP system using transaction code VF04 and
selects deliveries to be billed from billing due list.
After selecting deliveries, user creates invoices by executing billing run.
System generates invoices printouts (3 Copies) of each invoice.
One copy is filed for record, one is sent to Sales Coordination department and one to the customer.
6.14 Process Desciption Invoice Correction Processing :

In case of wrong billing to customer, correct invoice can be created and printed from the system by processing a
special sales order and billing it accordingly. Invoice Correction sales order can be created in the system with
reference to the incorrect invoice documents.
6.15 Process Steps:
Customer sends the invoice correction request to concerned department.

Concerned department verification and evaluating the request and create invoice correction order in
system, then forward then request for approval.
Request is forwarded to approving authority.
If approved, the approving person / relevant user using via transaction code VA02 removes the billing
block from the request. In other case reason of rejection is entered and request is sent back to
concerned department who intimates the customer about the request rejection reason.
Relevant invoice user who runs the billing run via transaction code VF01 receives approved request.
System generates credit or debit memo along with corrected invoice (3 Copies). One copy is filed for
record, one is sent to concerned department and one to customer.
6.16 Process Desciption Pro-forma Invoice Processing:

In case of export sales customer request for a pro-forma invoice document to initiate export sales process. Proforma invoice is and essential document in the export sales process, however posting the pro-forma invoice does
not post any accounting document in the system. Accounting document is only posted to in the system after
actual billing of the export sales delivery. In case of VMS TRADING COMPANY pro-forma invoice can only
be processed against a sales order.
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6.17 Process Steps:
Customer sends request for pro-forma invoice, along with Purchase order to International division.
International division makes copy of PO and sends it to finance department.
Finance department create a sales order and inputs the pro-forma invoice details in SAP system using
via transaction code VF01.
System generates printout of pro-forma invoice (2 copies). One copy is filed for record and other
(signed) send International division from where it is signed and forwarded to the customer.
Page 29 of 29

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VMS Trading Company

SAP Implementation Project

VMS Trading Company FI Structure Document

SAP Implementation Project

VMS Trading Company FI Structure Document

I. Handling Procedure 1-7

III. Overview of Module:

1.1 Sales Organization:

1.3 Distribution Channel: 1-10

1.5 Sales Area:

1.6 Shipping Point: 1-10

USINESS SPECIFIC DETAILS (Master data)

2.2 Cutomer Master Data:2-11

2.5 Partner Fuction:

2.6 Customer Master Data and Process Flow: 2-13

2.8 Sap Recommended Process Flow Chart For Customer Creation:

Customer Material Info Record:

3.1 Condition Master Data:

3.2 Conditions and Agreements (Pricing):

SAP Implementation Project

VMS Trading Company FI Structure Document

3.4 Configuration Data:

3.5 Pricing Data master Maintaince:

3.7 Sap recomended Process Flow Chart:

4.2 Scope of implementation:

4.3 Business specific Details (sales order Process): 3-20

4.4 Status Anlaysis:

4.5 Automatic Detemination:

4.6 Sales Document Type:3-20

5.2 Outbound Delivery:

5.3 Scope of Implementation:

5.4 Business Specific Details (Shipping):

5.5 Outbound Delivery:

5.6 Post Good Issue:

5.7 Document Flow:

5.8 Overall Processing Status:

5.9 Automatic Updating: 3-24

SAP Implementation Project

VMS Trading Company FI Structure Document

5.10 Process Description (TO-BE) :

5.11 Delivery Processing: 3-25

5.13 Outbound Delivery Data:

5.14 Process Desciption Delivery Document Processing :3-26

6.1 Scope Of Implementation:

6.2 Business Specific Details (Billing) : 6-27

6.3 Creation Of Invoive : 6-27

6.5 Automatic Updating Of General Ledger & Reports:

6.7 Process Desciption (To-Be):

6.9 Invoice Data:

6.10 Process Desciption Invoice Document Processing : 6-29

6.12 Process Desciption Collective Invoice Processing: 6-29

SAP Implementation Project

VMS Trading Company FI Structure Document

The Structure Document is a core implementation document for SAP

SAP Implementation Project

VMS Trading Company FI Structure Document

III. Overview of Module:

Pre-sales activities, including Inquiry and Quotation creation.

Sales Order processing, including Sales Order (SO) creation.

Shipping, including Outbound Delivery document creation.

Billing, including Billing document and invoice creation.

SAP Implementation Project

VMS Trading Company FI Structure Document

1.1 Sales Organization: