SD

SALES AND Distribution

SAP SD handles all the processes of order to delivery. It executing all kinds of the business processes used in selling, shipping and billing of products and services.

• Inquiries & Quotes
• Sales Orders
• Sales Return
• Consignment
• Contract & Scheduling Agreements
• Credit & Debit Memo requests
• Rust Orders & Cash Sales
• Back Orders

R/3 - 

R/3 is present as a three-tiered architecture, which is used by the system. there are three tiers following are.

1. Application Server
2. Database server
3. Presentation Server

Organizational Structure :

1. Sales Organization
2. Distribution Channel
3. Division
4. Sales Office
5. Sales Group

Shipping Process :

Shipping is an essential part of any manufacturing company to ensure efficient customer services and delivery of products. The shipping is required for Outbound delivery, Planning and monitoring, post goods issues, picking and packing of goods and shipping communication.

Periodic Billing :

Full amount in each bill till contract period.

Milestone Billing : 

Partial amount in each bill till full amount is billed.

Determining Shipping Point :

Shipping point is determined by.

Shipping Conditions+ Loading Group+ Delivery Plant = Shipping Point

Assigning Distribution Channel to Sales Organization :

To assign distribution to sales organization in SAP.

SPRO(SAP Project Reference Object)-->IMG-->Enterprise Structure---> Assignment---> Sales and Distribution---> Assign Distribution channel to sales organization.

Sales Document Type :

1. Credit Memo Request
2. Debit Memo Request
3. Standard Order
4. Returns.

Transaction Data and Master Data :

Master Data refers to the characteristics of an object whereas transaction data refers to all the transactions that are carried out using the object. Any data which does not change so frequently in master data like configuration settings like company data, personal area etc. Any data which keeps changing so often in transactional data, like employee data. 

Sales Organization : An Organizational unit sells and distributes products, negotiates term of sales, and is responsible for these truncations.

Distribution Channel : This channel through which materials or services reach customers. Typical distribution channels include internet sale, wholesale, retail and direct sales. We can assign a distribution channel to one or more sales organizations.

Division: Product groups can be defined for a wide ranging spectrum of products.

Credit Control Area - A Credit control is necessary for assigning more than one company code to more than one credit control area. Credit control area is present as an organizational unit used for specifying and checking credit limits for customers.

Delivery Scheduling - In General there are two types of techniques available in delivery scheduling. These are mentioned as -

1. Forward Scheduling - In this system, we can calculate the earliest possible date dependent on the material available date.
2. Backward Scheduling- This is about calculating the requested delivery date.

Outline Agreement - An Outline Agreement is defined as a long-term purchasing agreement done with  the vendors. In this agreement, we will find general terms and conditions related to the material that is usually supplied by the vendors. Outline Agreements have two types that are involved in the SAP SD.

1. Scheduling Agreement - It is known as an external agreement comprising the details of services, products and delivery dates.
2. Contract - The contracts usually exist between ordering parties and vendors over a specified period. we will find two types of contracts mentioned as value contracts and quantity contracts.

Inquiry - The inquiry is the process that includes registration of customer's probable requirements.

Quotation - The quotation is a kind of legally abiding document, which is offered to customers following the terms and conditions for delivering the service as well as the product. 

Consignment Stock - Consignment stock is generally the material that is available on the company premises but does not add in the stock. It is only added when it is either marked as sold or sent to the production.

Transaction Codes for Creating and Changing Customer Master -

XD01 - Used for creating customers

XD02 - Required for changing a customer

XD03 - Displaying a customer

XD04 - Essential for altering customer changes

XD05 - Required for blocking a customer centrally

XD06 - Marking a customer for deletion

XD07 - Changing a customer account group

XD99 - Upholds customer maintenance

XDN1 - Keeping the numbers ranging for a customer

SAP Credit Memo - IT is usually created based on a credit memo request. It can be generated at the time when we have to pay the customer.

SAP Return Order - The return order is about receiving the returned goods coming from the customers. Hence, the sales department is responsible for creating return orders, and based on this return delivery document is created.

Sales Office - Sales office is a geographical group that is created for structuring a sales team within an organization. The sales office can be assigned to one or more Sales Area.

Sales Groups - There is a staff of sales office that is divided into sales groups and further to sales employees, so sales groups is a kind of group of persons related to the sales department working for numerous purposes.

Sales Employees - Sales employees are those who have personnel master records required for managing data of sales employees.

Shipping Point - It is a point from where the team can ship the deliveries of products.

Loading Point - The subdivision of the shipping point is referred to as a loading point that means a manual entry in the header data of delivery according to customization.

Ship to Party - Where a person received the goods

Payer - A person pays the payment

Sold to Party - An individual who places the order

Bill to Party - A person who gets the bills.

SD Organizational Structure

In SAP, several structures can be used to represent the legal and organizational structure of the company. Organizational elements can structured from the point of view of accounting, materials management and sales and distribution. It is possible to compile these structures. The organizational structures form a framework in which all business transactions can be processed.

Following organizational units represents sales and distribution module:

1. Sales Organization
2. Distribution Channel
3. Division

SD module uses some other organizational units which are maintained by other modules in SAP.

1. Company code(FI)
2. Plant(Material Management)
3. Storage Location(Material Management)

Following is the organizational structure: