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THE DISSERTATION
REPORT OF SAP IN SALES
AND DISTRIBUTION AND
USAGE OF SAP
IN
SALES AND DISTRIBUTION
ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibilities
to complete this Project. I would like to thank Ms. Divya Rajput (Director)
and Ms. Sweta Seth; Delhi Business School, New Delhi; Mr. Santosh Kumar
Jena SAP Consultant, Webcom Technologies, New Delhi and college
authorities for providing me the opportunity to work with one of the
prestigious organization.
With a deep sense of gratitude and humble submission I would like to
express my heartiest gratefulness to my Faculty Guide Delhi Business
School , whose help, stimulating suggestions and encouragement helped me in
all the times of research for and writing of this Project.
Date:
Signature:
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
DECLARATION
I hereby declare that the project report entitled “THE DISSERTATION
REPORT OF SAP IN SALES AND DISTRIBUTION AND USAGE OF SAP
IN SALES AND DISTRIBUTION” is the outcome of my sincere effort. This
training Project Report is being submitted by me at WEBCOM
TECHNOLOGIES, New Delhi, for the partial fulfillment of the course
MBA+PGP (Industry Integrated), and the report has not been submitted to any
other educational institutions for any other purpose.
Date:
Signature
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
EXECUTIVE SUMMARY
This project report deals with the use of SAP SD module for the sales and
distribution in any organization. It contains the definition of the, enterprise
structure, sales organization, sales order cycle. In enterprise structure we
define the company, company code, sales area and shipping point and the
assignment of these areas with the company code. We also define the
distribution channel; division .Integration of subgroups is done. In sales order
cycle, we show how the sales process takes place in any organization.
In this report we also show all related transaction codes and path in the
enterprise structure, master data, sales document style, sales order cycle. We
have also given the different screen shots of different paths and features.
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TABLE OF CONTENT
CHAPTERS PARTICULARS PAGE NO.
1. INTRODUCTION
1.1. SAP HISTORY
1.2. SAP ADVANTAGES
1.3. CURRENT PRODUCTS 7- 15
1.4. ORGANIZATIONAL LANDSCAPE
1.5. ASAP METHODOLOGY
1.6. SUCCESS OF SAP
2. MASTER DATA
2.1. ENTERPRISE STRUCTURE 16-41
2.1.1. DEFINITIONS
2.1.2. ASSIGNMENTS
2.1.3. BUSINESS AREA ASSIGNMENTS
3. MATERIAL MASTER DATA
3.1. MATERIAL MASTER
3.2. MATERIAL TYPE
3.3. USES 42-50
3.4. DIFFERENT TYPES OF MATERIAL AVAILABLE
3.5. LOADING GROUP
3.6. TRANSFER OF GOODS
3.7. TO SEE YOUR STOCKS
4. CUSTOMER MASTER DATA
4.1. PURPOSE
4.2. FEATURES
4.3. USES
4.4. DEFINE ACCOUNT GROUP WITH SCREEN LAYOUT
4.5. ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUP 51- 58
SET UP PARTNER DETERMINATION
4.6. DEFINING PARTNER FUNCTIONS
4.7. CREATE CUSTOMER
4.8.
5. SHIPPING POINT DETERMINATION 59-60
5.1. SHIPING POINTS
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1. INTRODUCTION
SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the
world's third-largest independent software vendor. The original name for SAP was German: System,
Anwendungen, and Produkte. It means "Systems Applications and Products." The goal of the company
was to provide large enterprise customers with the ability to interact with a corporate database in real-
time. Today, the company states that its goal is "to offer the industry's most comprehensive portfolio of
business performance and optimization solutions for companies of all sizes."
SAP's first software application was a financial accounting software suite that ran on a mainframe and
was known for its stability. It eventually became known as the R/1 system. The "R" stands for real-time.
During the 1980s, the company went international, and the second iteration of the R system (R/2)
accommodated different languages and currencies. In the 1990s, the third iteration (R/3) moved from the
mainframe to a client/server three-tier architecture composed of a database, software applications and a
common graphical user interface (GUI). SAP used the name R/3 until the 5.0 release. At that time the
name was changed from R/version to ERP Central Component (ECC). The most current version as of
November 2009 is ECC 6.0.
When the Internet became pervasive, SAP responded by providing companies with the software they
needed to sell goods and services online. Their product portfolio got a Web interface and was rebranded
MySAP.com. My SAP was designed to be a corporate Web portal with role-based permissions for
employees. The company promoted how SAP "solutions" could link commerce conducted over the
Internet (e-commerce) with traditional bricks and mortar commerce to provide one seamless view of the
business. Next came SAP Net Weaver, the company’s development and integration platform and
middleware component, and Business Suite, a bundling of SAP’s enterprise resource planning (ERP),
customer relationship management (CRM), supply chain management (SCM), product lifecycle
management (PLM) and supplier relationship management (SRM) applications. In 2008, SAP purchased
Business Objects, a French enterprise software company that specializes in business intelligence (BI),
which marked a major change in the company’s BI strategy, which was previously focused around
SAP's Business Explorer tools.
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1(b).PRIMARY OBJECTIVE:
To learn and understand the process of sales and distribution of a company. And also to understand
how to create integrate and the different documents and orders.
1(c).SECONDARY OBJECTIVE:
To use SAP in future.
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Over the course of three decades, SAP has evolved from a small, regional enterprise into a world-class
international company. Today, SAP is the global market leader in collaborative, inter-enterprise business
solutions. The company now employs more than 47 598 people, whose commitment and innovative
spirit pace our future success.
In 1972, five former IBM employees – DietmarHopp, Hans-Werner Hector, HassoPlattner, Klaus
Tschira, and Claus Wellenreuther – launch a company called Systems Applications and Products in Data
Processing in Mannheim, Germany. Their vision: to develop standard application software for real-time
business processing.
One year later, the first financial accounting software is complete, forming the basis for the continuous
development of other software components in what later came to be known as the "R/1 system." "R"
stands for real-time data processing.
By the end of the decade, intensive examination of SAP's IBM database and dialog control system leads
to the birth of SAP R/2.
SAP moves into the company's first building on Max-Planck-Strasse in an industrial park in Walldorf,
near Heidelberg. Our software development area and its 50 terminals are all now under one roof. Fifty of
the 100 largest German industrial firms are already SAP customers.
The SAP R/2 system attains the high level of stability of the previous generation of programs. Keeping
in mind its multinational customers, SAP designs SAP R/2 to handle different languages and currencies.
With this and other innovations in SAP R/2, SAP sees rapid growth.
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By the middle of the decade, SAP founds its first sales organization outside Germany, in Austria. The
company makes its first appearance at the CeBIT computer fair in Hanover, Germany. Revenues reach
DM 100 million (around $52 million), earlier than expected.
In August 1988, SAP GmbH becomes SAP AG. Starting on November 4, 1.2 million shares are listed on
the Frankfurt and Stuttgart stock exchanges.
Germany's renowned business journal, manager magazine, names SAP its Company of the Year – a
distinction we would receive twice more in the next few years.
With the founding of subsidiaries in Denmark, Sweden, Italy, and the United States, SAP's international
expansion takes a leap forward.
SAP R/3 is unleashed on the market. The client-server concept, uniform appearance of graphical
interfaces, consistent use of relational databases, and the ability to run on computers from different
vendors meets with overwhelming approval. With SAP R/3, SAP ushers in a new generation of
enterprise software – from mainframe computing to the three-tier architecture of database, application,
and user interface. To this day, the client-server architecture is the standard in business software.
A growing number of subsidiaries are managed out of Walldorf. The new Sales and Development
Center in Walldorf officially opens it doors. It symbolizes the global success of the company. In our
twentieth year, our business outside Germany exceeds 50 percent of total sales for the first time.
By 1996, the company has earned 1,089 new SAP R/3 customers. At the end of the year, SAP R/3 has
been installed in more than 9,000 systems worldwide.
SAP celebrates its twenty-fifth anniversary in 1997 and now employs approximately 12,900 people. We
continue to strengthen our industry focus and build more and more industry-specific solutions. Henning
Kagermann becomes Co-Chairman and CEO of SAP AG with HassoPlattner. On August 3, 1998, the
letters S-A-P appear for the first time on the Big Board at the New York Stock Exchange (NYSE), the
largest stock exchange in the world.
As the decade draws to a close, HassoPlattner, Co-Founder, Co-Chairman, and CEO announces the
mySAP.com strategy, heralding the beginning of a new direction for the company and our product
portfolio. mySAP.com links e-commerce solutions to existing ERP applications, using state-of-the-art
Web technology.
With the Internet, the user becomes the focus of software applications. SAP develops SAP Workplace
and paves the way for the idea of an enterprise portal and role-specific access to information.
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Currently, more than 12 million users work each day with SAP solutions. There are now 140,000
installations worldwide, More than 2,400 certified partners, over 25 industry-specific business solutions,
and more than 75,000 customers in 120 countries. SAP is the world's third-largest independent software
vendor.
With service-oriented architecture and the underlying integration and application platform SAP
NetWeaver, SAP is providing our customers with solutions for end-to-end business processes. With
SAP NetWeaver, your company can integrate people, information, and processes within the company
and beyond.
To further demonstrate our commitment for ongoing innovation, growth, and market leadership, SAP
acquired Business Objects in 2008. Together, SAP and Business Objects, an SAP company, offers the
industry's most comprehensive portfolio of business performance and optimization solutions for
companies of all sizes.
• Integration: All work processes within a company or group of companies are linked through data
and functions using the R/3 System.
• User Friendliness:The R/3 System has a uniform graphical user interface for all application
areas.
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product or suite of products provides the R/3 System’s functional links between processes that multiply
the power of each person’s work.
• Real-Time Information:The R/3 System’s ability to “drill down” to whatever level of detail you
need is legendary. More than any other product, the R/3 System provides up-to-the-minute, real-time
information wherever and whenever you need it.
• Best of Breed:Users want standard software as well as standard business processes and guidance on
how to implement them successfully. With the R/3 System you get the “best of breed” for all common
business processes. You do not need to compromise on flexibility. If you need or want to fine tune or
tailor your R/3 System, the capability is there.
• Lean Implementation:The R/3 System promotes lean implementation through its modular
structure. By selecting key portions of the R/3 System for first-time implementation, and minimizing
customization, new users bring the full power of the R/3 System to address their business issues with
great speed, at a reasonable cost. Once running, the R/3 System makes it easy to add more functional
pieces. Tools on various system levels allow you to fine tune all R/3 System functional modules.
Gradually adding functionality makes core solutions available sooner without sacrificing long-term
application muscle.
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• Desktop Integration:Desktop integration in the R/3 System means that whenever you want data
moved into a desktop PC application, it is a mouse-click away. Download or export a file to your PC’s
hard drive and then open it in your favorite spreadsheet or word processor. No awkward or failure-prone
communications between hardware or to hinder hinders your productivity.
• Online Integrated Graphics:Online integrated graphics in the R/3 System save you time and
effort, while making your information more meaningful. From most locations in the R/3 System, you
can instantly create full-color 2-D or 3-D graphics from your data. If you change any data, you can
instantly see it affect the graphics you have selected. You can also use your mouse to change graphics
manually.
1.3.CURRENT PRODUCTS:
• SAP Net Weaver - service-oriented technology platform (SOA) for integrating information and
business processes across diverse technologies and organizational structures. Net Weaver provides the
foundation for other SAP software bundles.
• SAP Business Suite - software applications for large organizations and international corporations.
The applications support core business operations such as supply chain management, warehouse
management, sales, customer relationship management and administrative functions. SAP offers
software for 25 vertical industries, including banking, insurance, chemicals, and healthcare, retail and
consumer products.
• SAP Business All-in-One solutions, SAP Business by Design and SAP Business One - software
products that address the needs of small and mid-market companies.
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1. Development Server - It is the server where the consultants do the customization as per the
company's requirements.
2. Quality server -It is the servers where the core team members test the customization.
At this juncture, it is important to state that a test system - Sandbox can also exit separately. The essence
of the sandbox is to test the configuration of the business processes of a company, especially at the
inception of the project (before the Business Blue Print is signed). It can also serve as a practice
environment, even after go-live.
Pipeline is the environment where the configuration in the development system is moved to the quality
assurance system and finally to the production system. The whole idea is to ensure that the configuration
of these systems is in sync at any point in time. Suffice to say that, configuration/changes are first made
in the Development system, thoroughly tested in the Quality Assurance system before been loaded into
the production (Live) system.
This approach throws up the transport management system concept. Transport management system is
the coordination of the movement of objects and configuration changes from the development system to
the Quality Assurance system and then to the Production system. At times, this sequence of movement is
not possible, especially in cases where an SAP note mandates that changes be made directly on the
production system.
In such rare cases, objectively confirm that the change transport cannot be performed. Very likely, your
system must have been configured to "not modifiable" (a system locking strategy that enforces the three-
system landscape change transport rule); unlock the system by changing the global setting option
to "modifiable" using transaction SE03. After you have done that, effect the change(s) on the system.
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Immediately lock the system back by changing the global setting option to "not modifiable" using
transaction SE03. Replicate the changes on the other system. Note that transaction SCC4 can also be
used to lock the system so that client dependent and independent configuration changes are not carried
out directly on the production system.
By and large, the SAP system landscape ensures that the integrity of data is enhanced via enforcing a
controlled configuration changes effect on the target system - production.
ASAP methodology means nothing but standard process for implementation of SAP, It consists of 5
phases.
2. Business Blue print - Consists of identifying the client current process, requirement and how SAP
provides solution. Consists of detailed documentation
3. Realization -The purpose of this phase is to implement all the business and process requirements
based on theBusiness Blueprint.
4. Final Preparation - The purpose of this phase is to complete testing, end-user training,
5. Go live and Support– The purpose is to give end users proper training and support.
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2. MASTER DATA
2.1. ENTERPRISE STRUCTURE
From MM view, the typical enterprise structure can be seen as following image.
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SAP enterprise structure is organizational structure that represents an enterprise in SAP R/3
system. It consists of some organizational units which, for legal reasons or for other specific business-
related reasons or purposes, are grouped together. Organizational units include legal company entities,
sales offices, profit centers, etc. Organizational units handle specific business functions.
We must set the enterprise structure correctly in the first place. The change of it usually requires a great
effort and very time consuming. To set it up correctly we must have a comprehensive knowledge about
the business processes and how to map it to SAP configuration.
A specific organizational unit is defined by a specific function or module in SAP. Company code is
defined by FI module. Plant is defined by Logistics function. Storage Location and Purchasing
Organization are defined by MM module.
In SD module we have to define Sales Organization, Distribution Channel, and Division. We have an
option whether to use Sales Office, Sales Group, and Sales Person or not.
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2.1.1.DEFNITIONS:
2.1.1(a).COMPANY:
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When you create a company you should bear in mind the following points relating to group
accounting:
If your organization uses several clients, the companies which only appear as group-internal
business partners, and are not operational in each system, must be maintained in each client. This
is a precondition for the account assignment of a group-internal trading partner.
Companies must be cataloged in a list of company IDs which is consistent across the group. The
parent company usually provides this list of company IDs.
It is also acceptable to designate legally dependent branches 'companies' and join them together
as a legal unit by consolidation.
2.1.1(b).COMPANY CODE:
A Company Code is a unit included in the balance sheet of a legally-independent enterprise.
Balance sheets and Profit and Loss statements, required by law, are created at company code level.
The Company Code is the smallest organizational unit for which we can have an independent
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accounting department within external accounting, for example, a company within a corporate
group (client). In SAP, a company code is represented by a unique 4-digit alpha-numeric for a
specific client.
PATH TO CREATE COMPANY CODE:
2.1.1(c). PLANT:
A plant is the place of production or simply a collection of several locations of material stocks in close
physical proximity. A plant is represented by a unique 4-digit alpha-numeric for a specific client. Plant
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is used in Material Management (MM), Production Planning (PP), and Plant Maintenance (PM) module.
A plant is assigned to one company code.
The plant is assigned to a single company code. A company code can have several plants.
Several storage locations in which material stocks are managed can belong to a plant.
A plant can have several shipping points. A shipping point can be assigned to several plants.
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Division is a way to group materials or services. A wide range of materials or services can be divided
into divisions. A material or service is always assigned to just one division.
In SAP SD, the use of divisions allows us organize our sales structure around groups of similar products
or product lines. We can define a division-specific sales structure. Within a division, we can also carry
out statistical analyses or devise our own marketing strategies.
In order to adapt the functional scope of a division to the organization in your company, you should
process the following check list:
Allocate a business area to a division from a plant. This way, business area account assignment
can be carried out for transactions in Materials Management. As of Release 3.0, the business area
is determined in Materials Management from the division and the valuation area.
Define master data within a division for customers as well as your own conditions and pricing.
Create shared customer master data and conditions, which apply to several divisions, using a
common division.
Define for each sales document type that all items of a sales document must belong to the same
division.
The division is used as a selection criterion for lists of sales documents and the work list for
deliveries.
Sales organization is the basic organizational element in SD. All sales documents are created for a
sales organization. Sales organization can be defined based on:
The above sales organizations have been created because of following considerations –
Within a sales organization, you can define your own master data. This allows a sales
organization to have its own customer and material master data as well as its own conditions
and pricing.
Define sales document types within a sales organization.
A sales organization is the highest summation level (after the organizational unit Client) for
sales statistics with their own statistics currency.
To sum it up, the zonal nature of the organization structure is mapped using sales
organizations.
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Within a distribution channel, you can define master data for customers or materials as well as
conditions and pricing.
Create master data for a representative distribution channel which is then also used in other
distribution channels.
All items of a sales document belong to a distribution channel. The entire sales document is
therefore entered for a distribution channel.
You can determine the printer destination for messages differently for every distribution channel
on the basis of the sales and billing documents.
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Stocks are managed only on a quantity basis and not on a value basis at storage location level.
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We can also assign several plants to a shipping point in the SAP system.
In order to adapt the functional scope of a shipping point to the organization in your company, we
should process the following check list:
The shipping point is the top level in the organization for shipping.
A delivery is always initiated from exactly one shipping point. Thus, all items of a delivery
belong to one shipping point. Groups of deliveries also belong to exactly one shipping point.
The shipping point can be proposed automatically during order processing depending on the
plant, loading group and shipping condition.
The shipping point is used as a selection criterion for lists of deliveries and the work list
deliveries.
The shipping point is used as a selection criterion for processing deliveries like printing, picking
or goods issue.
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2.1.2.ASSIGNMENTS:
2.1.2(a).Assign Company Code to Company:-
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PATH:
Plant lava
Company Code Lava
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PATH:
PATH:
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PATH:
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Rule 2
PATH:
Plant Lava
Business area 0001
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Division Lava
Business Area 0001
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Division is a field in the material master data (it can be input/edited on “Basic Data 1” view by
MM01/MM02 t-code). That’s why a material is always assigned to just one division.
A material can be sold through one or more distribution channels in one or more sales organization. To
allow it, we have to maintain the material master data for each combination of sales organization and
distribution channel.
We can set different data of a material for each combination sales organization and distribution channel,
such as: “minimal order quantity” and “minimal delivery quantity” data. By doing so, for example, a
material must be ordered by customer minimal 1000 PC for wholesale channel and 10 PC for retail
channel (assumed we only have one sales organization).
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3.3.Use
When creating a material master record, the material type determines:
• whether the material number is assigned internally or externally
• from which number range interval the material number comes
• which screens are displayed
• the order in which screens are displayed
• which department-specific data is displayed for the user to enter.
Finished products (FERT): Finished products are produced in-house. Since they cannot be ordered by
Purchasing, a material master record of this material type does not contain purchasing data.
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Semi finished products (HALB): Semi finished products can be procured externally and manufactured
in-house. The company then processes them. A material master record of this material type can contain
both purchasing and work scheduling data.
Spare parts (ERSA): Spare parts are used to replace defective parts. They may be kept in stock. A
material master record of this material type can contain purchasing data, but not sales data.
After following path, select Industry Sector & Material Type and Press Enter.When you create a
material master record, you are required to classify the material according to industry sector and material
type.
Industry Sector: Key that specifies the branch of industry to which the material is assigned.
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1. Basic Data 1
Material Description
Basic Unit of Measure
Material Group
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Plant
Division
Storage Location
4. Sales: Sales Org. Data 2
Plant
Gross weight
Net Weight
8. Accounting 1
After entering all the required information save the data and the material will be generated.
Screen of Material creation:
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Material electronics
Industry sector Mobile
Material type Finished product
3.4.Loading Group:
After creating material use Transaction Code OMWD-Loading Group.
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Window will open write the Material and quantity and Enter and then save it. After that the document
will be posted and ten digits code will be generated.
In the SAP System, all business transactions are posted to and managed in accounts. You must create a
master record for each account that you require. The master record contains data that controls how
business transactions are recorded and processed by the system. It also includes all the information about
a customer that you need to be able to conduct business with him.
4.2.Features
Specifications made in master records are used:
For example, the terms of payment you specify in the master record are defaulted for document
entry.
Account control data, such as the number of the G/L reconciliation account
For example, the dunning procedure, the date of the last dunning notice, and the address are
required for the automatic dunning process.
You can prevent certain users from accessing an account by setting up authorization groups.
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Determination of the account groups for customers is done here. Define reference account
groups for one-time accounts. Use these to control the fields of the one-time account screen so that, for
example, certain fields are displayed as required fields or are hidden.
When creating a customer account, specify an account group. You can specify a reference account group
under "Control" in the "General data" part of a one-time account's master data. If you do not specify a
reference account group, then, as previously, all fields of the one-time account screen are ready for input
during document entry.
whether the number is assigned internally by the system or externally by the user (type of
number assignment)
which fields are ready for input or must be filled when creating and changing master records
(field status)
Steps:
Find ZAG2 from positions and then copy as.
Give your account group and name.
Go to general data and double click and select address.
Select name 1/ last name and tick the required entry tab.
Select company code data, then account management and then tick required entry of
reconciliation account.
Select payment transaction then terms of payment and then tick required entry.
Select sales data, then sales and then tick required entry in pricing procedure.
Select shipping then tick required entry of shipping conditions.
Select billing then billing and incoterms and tick required entry in both.
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
In this step we assign the number ranges we created in the preceding step to the account groups for
customers. We can use one number range for several account groups.
Group lava
Name Dheeraj
Number range 02
In this activity, we define the rules that should be used to perform automatic partner determination.
1. Define the partner functions that differentiate the roles of partners in your system.
2. Define the partner determination procedure, and assign the key of the relevant partner object
to this procedure.
3. Assign the partner functions you define to the account groups.
When we create a customer master record, the SAP system proposes the allowed partner functions for
maintenance. The partners are copied from the sold-to party's customer master records into the sales
documents, according to the rules we have defined.
Partner function
Partner object
Assigning procedures
Sales document
o Header
o Item
Delivery
o Header
Shipment
o Header
Billing document
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
o Header
o Item
Contact
Partner function
Partner type
Error group
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
4.7.1.Customer
Business partner from whom receivables are due as a result of services rendered. Examples of these
services are:
Goods delivered
Services performed
Rights transferred
Customer master data is maintained on four tabs for the following three views:
General data
Shipping conditions:
01 – As soon as possible
10 – Immediately
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
Condition Type
A condition type serves to differentiate between prices in the system. You can define a separate
condition type for each type of price, surcharge or discount that may arise in your business
transactions. The condition type defines, for example, a discount as a fixed amount or as a
percentage.
Access Sequence
An access sequence is a search strategy with which the system looks for valid data for a specific
condition type. You can define an access sequence for each condition type. In Enterprise Buyer
the access sequences are predefined, changes are not intended to be made by customers.
Condition Table
A condition table contains price information on a master data type, for example, on a product
master. If you define a product price or a special discount, for example, you create condition
records in the relevant condition table.
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
The access sequence is a search strategy which the SAP System uses to search for condition
records valid for a condition type.
For example, you can define for a price that the SAP System first searches for a customer-specific
price and then for a price list price.
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
We can, for example, define whether a discount is calculated as a percentage or a fixed amount using
the condition type. We specify an access sequence in every condition type. Thus, you define which
fields the SAP system checks when searching for a valid condition record.
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Customer
Sales area
In the pricing procedure, we define which condition types should be taken into account and in which
sequence. During pricing, the SAP System automatically determines which pricing procedure is valid
for a business transaction and it takes the condition types contained in it into account one after the other.
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To determine the procedure, we allocate the customer determination procedure and the document pricing
procedure to a pricing procedure within a sales area.
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2. Delivery document
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3. Billing document
Path Easy access screen >> SPRO >> IMG >> Sales and distribution >>
Sales >> Sales document >> Sales document header >> Assign sales
order types permitted for sales areas
8.1.INQUIRY
It is a customer request to the company for the quotation for distributing goods and services.
Creation of Inquiry (VA11) – A new Inquiry is created only when the authorized person at
Depot receives an Inquiry from an existing or new Non Trade Customer.
Material mobile
Inquiry no. 10000130
8.2.QUOTATION
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The dissertation report of SAP in sales and distribution and usage of SAP in sales and distribution
Material Mobile
Quotation no./ Offer 20000131
8.3.ORDER
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We need customer material information, price information about financial statement of items. Delivery
date and the quantity, and shipping information of customer.
1. Creation of Sales Order for a Trade Customer (VA01) – A Sales order is created when a
purchase order is got from the Trade Customer.
2. Creation of Sales Order with reference to a Quotation (Non-Trade customer) (VA01) – A
Sales Order created when a Purchase Order received from the Customer w/out reference to a
Quotation
3. Creation of Sales Order for delivery of material from another depot (VA01) – A delivery
from another Depot directly to Customer shall be created on the Decision of the Depot In charge.
8.3.1.ORDER PROCESS
PATH Easy access screen >> Logistics >> Sales and distribution >>
Sales >> Order >> Create
T- code VA01
Material Mobile
Standard order 8334
8.4.OUTLINE AGREEMENT
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1. Scheduling agreement
2. Contract
8.4.1.CONTRACT:
Contract is where you have a contract with the vendor, may be a for a predetermined quantity or
predefined value. So every time you need the material, we need to make PO ref the contract asking for
the delivery of the material. In such instance when PO is ref with contract it’s called contract release
orders or call off orders.
Material mobile
Quantity contract 40000106
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SA is also an agreement with the vendor for the supply of material, may be a quantity or value.
The delivery dates will be maintained in ME38 ref the SA which are called delivery schedules.
So you can maintain the delivery schedule and communicate the vendor on Forecast basis or JIT
basis. And when you need some more material then will only create SA deliveries using ME38.
SA could be of 2 types:- without release documentation-system will transmit the delivery info to
the vendor once you save the document.
PATH Easy access screen >> Logistics >> Sales and distribution
>> Sales >> Scheduling agreement >> Create
T- code VA31
Screen of creation of Scheduling agreement
Material Mobile
Scheduling agreement 30000068
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8.5.OUTBOUND DELIVERY
We can create an outbound delivery in a shipping point for orders that are due for delivery.
The SAP System copies the relevant data from the order (one or many order) to the outbound delivery.
We can create one or several outbound deliveries from the order. We can also combine items from
several orders into one outbound delivery.
Delivery Process:
1. Order number
2. Confirmation date
3. Shipping point
PATH Easy access screen >> Logistics >> Sales and distribution >>
Shipping and Transportation >> Outbound Delivery >> Create
>> Single document ( with reference to sales order
T- code VLOIN
Order 8334
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8.6.BILLING
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.
Creation of
I. Invoices based on deliveries and services.
II. Issue Debit and Credit memo.
III. Pro forma invoices.
Cancel billing transactions.
Comprehensive pricing functions.
Issue rebates.
Transfer billing data to Financial Accounting (FI).
PATH Easy access screen >> Logistics >> Sales and distribution
>> Billing >> Billing document >> Create
T- code VLOIN
Material Mobile
Billing document 90033130
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9.CONCLUSION
This project helped us to understand the use of SAP in sales and distribution.
The entire sales order cycle i.e. the creation of inquiry, quotation, order,
delivery etc could be learnt. The creation of a company and the integration of
various departments of the company could be understood while working in
this project. This project helped us to differentiate between the manual system
and the SAP integrated system in a company.
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Since it was not a real life environment there was a lot of problems which
were faced. Some of them are:
Only 1 server was there so very often data was getting locked.
Lot of user names were used but the problem could not be solved.
It was time consuming because of 1 server.
Many definitions had to be copied from the existing information
available in the server.
It was possible for anybody to delete any of the information created by
us.
The recommendation for this project is:
As we were working in a demo server all the above problems were
faced. So according to me while we work in the real life environment these
problems will not be faced. But to enhance the effectiveness of the training
it should be done in the real life environment. This we can say because at
that time we will have different user names and id’s so the other problems
will also be solved.
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11.BIBLIOGRAPHY
I have gathered all the information from the SAP Help Menu & various
websites like:
www.sap.com
www.thespot4sap.com
www.sap-img.com
www.sdn.sap.com
other than these I have gathered the information from my class notes and
other researches and papers available on SAP in the internet.
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