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1
Enterprise Resources Planning
2
Evolution of ERP
-
1960s: Inventory Control 1970s: Material Requirement Planning (MRP) 1980s: Manufacturing Resources Planning (MRP-II) 1990s: Enterprise Resource Planning (ERP)
3
1960s Inventory Management & Control combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. •identifying inventory requirements •setting targets •providing replenishment techniques and options • monitoring item usages, reconciling the inventory balances, and reporting inventory status. 4
1970s Material Requirement Planning (MRP) •software applications for scheduling production processes. •schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.
5
1980s Material Requirement Planning
(MRP II)
Manufacturing Requirements Planning or MRP II utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution Greater reductions due to the integration of production & Inventory with ing and HR.
6
1990s Enterprise Resource Planning (ERP) Multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for ing marketing, finance, ing and human resources. 7
Enterprise Where a transaction takes place. Where customers get the
satisfaction. Where the resources are available
for the peoples needs. 8
Why an ERP 1. Reduction of organization’s operating costs 2. integrates all parts of an organization 3. Integration Increases the efficiency of operations 4. Integration of information systems enables seamless flow of information across the organization. 5. Enables consolidation of different software in the organization 6. Helps in better customer service 9
Resources Money Men Machines Materials 10
Planning Proper Planning and Optimization of the
valuable resources make enterprise run into profits. Def of ERP
A Software Solution that addresses the ENTERPRISE NEEDS taking the PROCESS VIEW of an organization to meet the ORGANIZATIONAL GOALS tightly INTEGRATING all functions of an enterprise. 11
12
13
14
15
ERP for Managers • Effective communication • Better decision making • Business process re-engineering help to
reduce confusion and conflict. • Tailor-made on any issue. • Provides information on any stage of a business process
16
SAP MRP II 1972 ERP with R/2 architecture 1980s ERP with R/3 Architecture 1992 mySAP in 2005
17
Problems Tackled by ERP Systems
Material Shortages Productivity Enhancements Customer Service Cash Management Inventory Problems Quality Problems
18
ERP Products SAP BAAN Oracle APPS People Soft JD Edwards Marshall Etc..
19
Domain Share Of SAP
20
SAP & Competitors SAP R/3 had competition with Software giants like Oracle Corp, People Soft & Bann. Oracle with its E-biz suit packed to excel with 142 modules. People Soft with its extra ordinary performance in HR has stormed the market. But finally failed to gain the confidence of Big Enterprises. Result is SAP Has become giant in ERP.
21
Few SAP Customers IBM COMPAQ Hewlett Packard AMD Boeing Mercedez Toyota Lucent Hitachi Nike
TATA’s Dr.Reddy’s Labs Ranbaxy L& T Reliance Industries Glaxo Mahindra & Mahindra Hero Honda Growel Colgate Palmolive
22
Consulting Companies Price Water House Coopers. KPMG. Siemens. Delloitte. Accenture. Cap Gemini. IntelliGroup TCS.
23
SAP R/3 What is all about
Systems Applications & Products in Data Processing 24
SAP F u n c t io n a l FI/CO
T e c h n ic a l
(Finance & Controlling)
S & D (Sales & Distribution) HR (Human Resource) MM (Material Management) PP (Production Planning)
ABAP/4 Advanced Business
A d m in is t r a t io n
BASIS
Application Programming
Business Application
CA
Software Integrated
Cross Applications
Solutions
PS (Project Systems) QM (Quality Management) PM (Plant Maintenance)
Advanced
BW, APO, CRM, SRM, SEM, SCM,…..
ERP -2 Products
EP, XI, Net weaver,….. 25
THE SAP COMPANY SAP AG in 2011revenues: €6,520 million 60,100 installations 19,300 companies run SAP Providing 23 Industry Solutions 28,654 SAP employees (March 2003) 12 million s in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership More than 1,500 partners
26
SAP Milestones over 30 years
27
The SAP World SD
FI
Sales & Distribution
Financial ing
MM
CO
Materials Mgmt.
Controlling
PP
QM
AM
R/3
Production Planning
Fixed Assets Mgmt.
PS
Client / Server
Quality Management PM Plant Maintenance
HR
Human Resources
WF
IS
Project System
Workflow
Industry Solutions
28
SAP R/3 Customer Installations by Industry Others 11.5% SAP BANKING 2.0% SAP MEDIA 2.3% SAP HEALTHCARE 2.3% Metal, Paper & Wood Products 2.8% Services 3.1% SAP OIL & GAS 3.2% SAP TELECOMMUNICATIONS 3.4%
SAP HIGH TECH & ELECTRONICS 11.3% SAP ENGINEERING & CONSTRUCTION 10.5%
Worldwide
SAP CONSUMER PRODUCTS 10.3%
SAP PHARMA CEUTICALS 3.4% SAP PUBLIC SECTOR 3.4%
SAP CHEMICALS 9.5%
SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8%
SAP RETAIL 6.3%
Consulting & Professional Services 6.0%
29
Industry Solutions
30
Aerospace and Defense Apparel and Footwear Automotive Chemicals Consumer Products Trade Promotion Management Key Management
Distributor Reseller Management Financial Services Banking Insurances Collections and Disbursement Incentives & Commission Management Claims Management
Healthcare High Tech Media Oil&Gas Pharmaceuticals Public Sector Real Estate Retail Agency Business Category Management Store Management
Service Providers Telco
Asset & Liabilities Management
31
The SAP R/3 Architecture SAP R/3 works on Three Tier Architecture
Terminal
Application Server
Data Creation Modification Retrieval
Managing Requests
Database Server
Data Storage
32
3-Tier Client/Server Architecture Communication The Presentation Layer collects input and creates process requests. The Application Layer uses the application logic of SAP programs to collect and process the process requests. The Database Layer stores and retrieves all data.
33
•Secure Information
•Multi-Lingual
•Integrated
SAP •Multi-Currency
•Best Business Practices
•Enterprise-Wide 34
SAP - characteristics Highly Integrated solution covering entire business processes Technically capable of utilizing the network infrastructure Open system to ensure freedom to choose Provides multiple ways of configuring business processes Solutions in areas where currently no systems Workflow enabled business processes Enables to exploit the power of Intranet and Internet
35
Common SAP objectives Cost Control & increased profitability Increased productivity of all resources – man, material
& money Process Standardization Transparency in operations, resulting in better communication Shift from post-mortem scenario to predictive scenario 36
Results of Integration Focus on Business Processes Elimination of Redundant Data (Common Constant
Data) Easier Corporate Consolidation Better Managerial Control Elimination of Interfaces Faster reaction to changing structures 37
Success factors for SAP implementation Top Management Commitment & communication
down-the-line Empowerment Change management Training Compliance to methodology
38
SAP IMPLEMENTATION PHASES Project Planning Business Process Study & Analysis Installation Training Business Requirement mapping Configuration Modifications / Interfaces Data Conversion Documentation Testing Go-Live Post production 39
Implementation Methodology
40
SAP TYPICAL BLUE PRINT
41
SALES AND DISTRIBUTION
42
Customer Order
Final Payment
Picking
s Receivable
Goods Issue
Billing 43
Master Data Sales
Foreign Trade Sales
Shipping
Sales Info System
Billing Transportation
44
SD Mechanisms to execute the business
processes used in the selling, shipping and billing of products and services Tightly coupled data flow to the other SAP
modules — Integration Flexible and robust functionality that is
tailored through configuration
45
GENERAL SETTINGS COUNTRY CURRENCY TIME ZONE CALENDER
FACTORY VENDOR
UNITS OF MEASURE
CUSTOME R BASE
SALE
DELIVERY 46
ORGANIZATION STRUCTURE CREDIT CNTRL AREA
P.ORGN
CNTRL AREA COMPANY COMPANY-CODE
SHPNG PT
P.GRP SALES ORGN DIS CHNL SALES AREA
PLANT
DIVISION
SALES ORGN+DIST CHNL
SALES OFF SALES GRP EMP
EMP 47
Sales Organization Sells and distributes products, negotiates
of sales and is responsible for these business transactions Critical organization element to the definition of business markets A business transaction is linked to one Sales Organization
48
Distribution Channel Identifies how products and services reach
the customer Can be assigned to one or more Sales Organizations
49
Division Often times used to define product line
distribution Organization level to which customer specific information and requirements are maintained — e.g. pricing, partial delivery Assigned to one or more Sales Organizations
50
Sales Area Organizational element comprised of: Sales Organization Distribution Channel Division Will be used to link together the
organizational aspects of sales to customers Used for statistical analysis
51
Sales Area Domestic Sales Sales Organization SO00
Direct Distribution Channel DI
Baseball Division BB
Softball Division SB
Wholesale Distribution Channel WH
Baseball Division BB
Softball Division SB
Retail Distribution Channel RE
Baseball Division BB
Softball Division SB 52
Sales Office Typically defines a territory or market area Linked to one or more Sales Areas Optional organization structure
53
Sales Group Sales Group Sub-division of a sales office, territory or market
54
Sales Person Sales Person Defined in HR — Personnel . Specifically defines an individual rather than a position (sales rep.) in sales processing
55
Shipping Point & Loading Point Shipping Point Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point Loading Point A subdivision of the shipping point used for more specialized handling
56
r ate ial
Cu s to me r
M Master Data
Pricing 57
Customer Master Record Material Master Record CMIR Condition Master Output Materdata 58
-General
Data
Basic Unit of Measure Division Material Group Sales Unit Delivering Plant Cash discount -Tax data Country Tax category Tax classification -Quantity stipulations
Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
Min. order quantity Min. delivery quantity Delivery unit
59
Industry Sector: 1 Retail 2 Aerospace & Defense 3 Service Provider A Plant Engin./Construction B Beverage C Chemical Industry F Food and Related Products M Mechanical Engineering P Pharmaceuticals T Telecommunication W Retailing
60
FERT Finished product ROH Raw material HAWATrading goods KMAT Configurable material
61
Base Unit of Measure The Base Unit of Measure is the unit of measure in which stocks are managed within your company. Division You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). Material Group A (freely definable) key that’s used to group several materials or services for analysis/reporting as well as search by match code. Sales Unit This is the unit of measure in which the material is sold, if different from the base unit of measure. Delivering Plant is available for sale. default value only.
Plant, from which the material This is a 62
Tax data Country Tax category
Country Taxes, applicable to this material (e.g. Federal, State taxes in US, VAT in GB)
Tax classification
taxable, exempt
Quantity stipulations Min. order quantity
Min. quantity a customer can order (in base unit of measure).
Min. delivery quantity
Min. delivery quantity to a customer.
Delivery unit
Only multiples of this number will be delivered to the customer.
63
Basic Data 1 - 2 Classification Sales: sales org. 1 - 2
-Grouping
Sales: general/plant Purchasing
Matl statistics group Material pricing grp Volume rebate group Acct assignment grp Commission group Item Category group
Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
64
Matl statistics group
Helps to determine which data the system updates in the Logistics Information System (LIS).
Material pricing grp
A way to group materials with similar pricing conditions.
Volume rebate groupA material can be assigned to a volume rebate group (e.g. Low Rebate, High Rebate) if the material qualifies for rebate. Acct assignment grp
A grouping of materials with the same ing requirements (used to determine revenue and sales deduction s)
Commission group
Several materials can be assigned to the same commission group, if the commission sharing between representatives is the same for these materials (e.g. Rep.A: 6%, Rep.B: 10%, Rep C: 12%).
Item Category groupA grouping of materials, that helps the system determine the Item Category. Item Category determines how a specific item is processed by system. E.g. a text item is not relevant for pricing.
65
Basic Data 1 - 2
General data Base unit Gross weight Net weight Avail. Check Shipping data (times in days) Trans. Grp LoadingGrp Packaging material data Matl grp ship. matls General plant parameters
Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
Negative stock
66
General data Base unit
The Base Unit of Measure is the unit of measure in which stocks are managed within your company.
Gross weight
In Base Units of Measure.
Net weight
In Base Units of Measure.
Avail. Check
Tells the system when to do an availability check, as well as which MRP elements (such as purchase orders, reservations) to include in the check.
Shipping data (times in days) Trans. Grp
Transportation groups are groups of materials that have the same transportation requirements. For example, all goods that need refrigeration.
Loading Grp
Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.
67
Packaging material data Matl grp ship. matls, or Material group shipping materials
Freely definable group name, which is used to indicate groups of materials with similar shipping materials, such as liquids or bulk, for example.
General plant parameters Negative stock
Check mark indicator, which specifies whether negative stock is allowed at that plant.
68
Basic Data 1 - 2 Classification Sales: sales org. 1 - 2
- Sales texts
Text specific to the material and in an appropriate language.
Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
69
Sales & Distribution - Customer Master -
70
Groups group determines which fields are
to be used in defining customer master data
71
Field Status Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity — create, change, or display
72
Customer Master G e n e ra l D a ta S a le s & D is tr ib u tio n D a ta
Com pany Code D a ta
73
Customer Master Centralized data for both SD & FI Segmented into three sections General data - address & communication Company code data (FI) - banking and payment information related to FI Sales data (SD) - pricing, delivery, output The sales data is specific to one sales area
and is therefore dependent on the sales organization
74
Customer Master by Sales Area Customer Sales Organization Distribution Channel Division
75
General Data — Address Customer Name Search Term Street address, City, Postal code, Country Language
General Data — Communication Telephone, Fax, Data numbers
76
General data — Control data control :
Vendor, Authorization Trading partner, Group key
Tax information :
Tax codes, Fiscal address Country code, City code VAT N, Tax jurisdiction code Equalization tax, Sole proprietor Tax on sls/pur.
Reference data / area : Industry:
International Locator No. Transport Zone Express station Train station Location code
77
General Data — Marketing
Classification : Nielsen ID Customer classification Industry Industry codes Operating figures : Annual sales Number of employees Fiscal year variant Sales prospecting : Legal status 78
General Data — Payment Transactions
Bank details
Country Bank Key holder Bank Control Key Collection
79
General Data — Unloading points
Unloading point Customer factory calendar Default Unloading Point Goods receiving hours
80
General Data — Foreign trade
Country key for export control of customerTable of Denial Orders list (TDO) Special Designated Nationals list (SDN) Diversion High Risk Profile list (DHRP) Usage and Classification 81
General Data — persons
Name Telephone number Department First name Form of address (e.g. Mr., Ms.) Function 82
Company Code Data ing Information
ing info Reconciliation Sort key Head office Interest calculation Interest indicator Interest calculation frequency Last key date Reference data
Buying group
83
Company Code Data Payment Transactions
Payment data: Payment Tolerance group Automatic Payment Transactions: Payment methods Alternative payer Lockbox
84
Company Code Data Correspondence
Dunning data :
Dunning procedure Dunning recipient
Correspondence :
number at customer Customer
Payment notices to :
Customer Sales ing Legal 85
Company Code Data Insurance
Export credit insurance : Policy number Institution number Amount insured Valid until Lead months Deductible
86
Sales Data — Sales area
Sales order : Sales district Sales office Sales group Order probability Item proposal at customer Pricing / Statistics: Price group Customer pricing procedure Price list type Customer statistical group 87
S & D Data — Shipping
Shipping :
Delivery priority Shipping conditions Delivering plant Order combination Batch split allowed
Partial Delivery: Complete delivery Partial delivery of item Maximum part deliveries
88
S&D Data — Billing
Billing section : Manual invoice maint. Rebate Pricing Billing schedule Invoice list schedule Delivery and payment : Inco Payment ing : assignment group Taxes:
Tax requirements for the customer 89
S&D Data — Partner functions
The different partners are assigned • • • • •
SP BP PY SH …
Sold-to-party Bill-to-party Payer Ship-to-party additional Partner function(s)
90
Asg Additional Partners — Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Bill-to Payer Ship-to Ship-to : 10018 — Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Payer Ship-to Ship-to : 10018 Bill-to Ship-to : 10249 - Bakersfield, CA
Ship-to 91
Sales & Distribution - Business Partners -
92
Business Partners Defines all of the parties involved in a
business transaction and differentiates between their roles — customer, carrier, employees, customer , etc. Through customizing the system automatically assigns partners to the customer master and to transactions
Sold-to
Ship-to
Bill-to
Payer 93
Business Partners The system creates these four business
partners by default. All four are required. All four may be the same or may be
different. Since these are automatically assigned
partners you may need to add additional partners to carry out your business Sold-to Ship-to Bill-to Payer transactions. 94
Business partners — Sold-to Customer that orders the goods Can perform all primary partner functions — soldto, ship-to, payer, bill-to Primary type of business partner Cannot be linked to other sold-to partners
Sold-to Ship-to Bill-to Payer
95
Business partners — Ship-to Party that receives the goods Can be created as an independent partner and linked to one or more sold-to partners
Sold-to Ship-to Bill-to Payer
96
Business partners — Billto Party that receives the invoice Can be created as an independent partner and linked to one or more sold-to partners
Sold-to Ship-to Bill-to Payer
97
Business partners — Payer Party that sends the payment Can be created as an independent partner and linked to one or more sold-to partners
Sold-to Ship-to Bill-to Payer
98
Sold-to
Sold-to
Ship-to
Bill-to
Ship-to
Ship-to
Payer
Ship-to
Ship-to
Ship-to 99
100
TERMINOLOGY Partner determination procedure Partner functions Group Partner type Error group Sequence
101
Set up Partner For Customer Master Determination
For Sales Document Header For Sales Document Item For Delivery For Shipment For Billing Header For Billing Item For Sales Activities (CAS)
102
Business relationships
103
Partner types
104
• Customer Material Info. Record • Item Proposal • Listing & Exclusion • Product Substitution
105
Customer/Material Info. Record Defines a customer alias for a material & description, for example:
Material # : Glove Customer # : Pastime Glove Can further define attributes of the
material, shipping and partial delivery information specific to the product and customer Referenced in the sales order using the Ordering Party overview
106
Item Proposal Used to define frequently ordered
combinations or special assortments of products and quantities Either products or products with quantities can be selected during order entry An item proposal can be defined for a customer via the customer master record
107
Material Listing & Exclusion Used to control what products are available
for a customer or group Material Listing — defines products that can be sold to a customer Material Exclusion — defines products that cannot be sold to a customer
108
Product Substitution Material Determination Enables automatic or manual substitution of
materials during sales order processing Examples: substitute a standard product with a
promotional material substitute based on a customer preference substitute based on selection list (manual)
109
SALES CYCLE INQUIRY
CONTRACTS
SCHEDULIN G
QUOTATION
AGREEMNET S
ORDER DELIVERY
PGI
BILLLING REL TO S
INVENTORY
110
111
SALES ORDER PROCESS
Sales Activity
Sales
Inquiry
Quotation Delivery Free Of Charge
Shipping
Billing
Sales Order
Returns
Delivery
Credit Memo
Invoice
FINANCIAL ING
Debit Memo
M AT E R I ALS M AN AG E M E N T
S ALE S I N F O R M AT I O N S YS T E M
Sales
112
ORDER TO CASH PROCESS INQUIRY
SD O 2C MRP
NO
QUOTATION
AVAILABILITY CHECK
ORDER
YES
SCHEDULE LINE
DELIVERY
INVOICE FOR MANU. GOODS
INVOICE FOR FINISHED GOODS 113
SALES DOCUMENTS
•
Inquiry
Quotation Sales Order Delivery Free of Charge (Sample Goods) Returns (Customer Complaints / Damages)
114
REFERENCE DOCUMENTS
115
INQUIRY & QUOTATION
A customer or prospect may submit an inquiry to
ascertain whether you stock a certain product, what that product costs, and whether it is available by a certain deadline. The inquiry represents a request for a sales quotation from the customer. A quotation is a legally binding offer to the customer
to deliver materials or perform services on the basis of fixed conditions.
116
SALES ORDER
A customer request to the company for the delivery
of goods or services at a certain time
A sales order consists of one or several items
containing the quantity of the material or service specified for the order.
The total quantity can be subdivided into schedule
lines, which contain different partial quantities and the relevant delivery dates. 117
SALES ORDER
Item availability Sales orders follows check isthe done andorder purchase shipping point from the Is determined customer for delivery scheduling
118
RETURNS Complaints and returns functions are used when
customers want to return goods that are damaged or goods that were sent on a trial basis. You can also use complaints functionality if the wrong goods were delivered or if the delivery quantities and prices were incorrect.
Sales documents for processing complaints are Free of
charge delivery, Returns & Credit and debit memo requests
119
RETURNS DOCUMENT
120
CREDIT / DEBIT MEMO
121
INVOICE CORRECTION REQUEST
122
Sales & Distribution - Transactions -
123
Returns
Inquiry Quotation Sales Order
Contract Consignment
Cash Sale Returnable Packaging
Rush Order Debit Memo
Scheduling Agreement
Credit Memo
124
ITEM CATEGEORY FUNCTIONS
125
126
127
ITEM CATEGEORY GROUP
128
129
ITEM CATEGEORIES
130
131
132
133
ITEM CATEGEORY DETERMINATION IN SALES ORDER
134
Copy control
135
Pricing “World-class” functionality Highly customizable & extendible One of the most complex features of SAP Used to determine the net price for a material
or an order
136
Pricing Work Flow Pricing Procedure Determination
Condition Records
Pricing Procedure List Of Condition types arranged in a logical sequence
Access sequence Condition tables Fields 137
Pricing Components Pricing is based on a matrix of predefined and
custom elements Delivered element groups (a.k.a. conditions) Prices Discounts & Surcharges Freight Taxes
138
Pricing Procedure • In short, the mechanism used to arrive at the final price • Considers all of the applicable pricing conditions, e.g. material price, customer discount • Is assigned by: sales area, sold-to party and sales document type (e.g. sales order) 139
Pricing Procedure • The pricing procedure uses what SAP calls “the condition technique”. • The pricing condition technique starts with the: – – – – –
Pricing Procedure which looks at Conditions which use Access Sequences which accesses Condition tables which point to A price, discount or other condition ($)
140
R/3 Pricing Process SALES DOC. ITEM
DETERMINE PRICING PROCEDURE FOR ITEM
DETERMINE ACCESS SEQUENCE FOR EVERY CONDITION TYPE IN PRICING PROCEDURE
ACCESS THE CONDITION RECORDS AND DETERMINE PRICE
PRICE THE ITEM
SALES AREA & DOCUMENT TYPE & SOLD-TO
CONDITION TYPE AND ACCESS SEQUENCE ARE LINKED IN TABLE
CUSTOMER/MAT’L OR PRICE LIST/MAT’L OR MATERIAL
--$9.25 N/A
UNIFORM
SALES DOC. SOLD PRICING AREA TYPE TO PROCEDURE US01
A
1
USSTD
US01
B
1
USALT
UK01
A
1
UKSTD
UK02
A
1
UKSTD
KEY
ACCESS SEQUENCE
PR00 KI00 TX00 FR00
PR00 KI00 TX00 FR00
PRICING CONDITION CONDITION PROCEDURE TYPE USSTD
PRICE ELEMENT CONTROL PARAMETERS UPPER/LOWER LIMITS
CONDITION TYPE
USALT
STOPS LOOKING AFTER FINDING FIRST VALUE
LOOK FOR CONDITION ACCESS OR RECORDS IN THIS ORDER SEQUENCE DER OF CONDITION TABLES PR00
01
CUSTOMER/MATERIAL
02
PRICE LIST TYPE/MAT’L
03
MATERIAL
01
CUSTOMER/MATERIAL
PR00
PRICE
KI00
DISCOUNT
TX00
TAXES
02
PRICE LIST TYPE/MAT’L
FR00
FREIGHT
03
MATERIAL
PR00
PRICE
KI01
DISCOUNT
KI00
ETC.
ETC. 141
Configuration of Pricing
142
Menu path : IMG >SALES & DISTRIBUTION >BASIC FUNCTIONS >PRICING
143
Double Click to View field catalogue
144
FIELD CATALOGUE PRICING SD
145
718
Condition table: contains combination of key fields that form the basis for condition records
CREATION OF CONDITION TABLE 1-500 SYSTEM DEFINED 501-999 – DEFINED 146
718
147
148
149
Access sequence: It is sequential placing of condition tables in a logical order to obtain condition record.
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
TRANSACTION CODE:
V/03
165
166
TRANSACTION CODE:
V/08
167
168
169
170
TRANSACTION CODE:
V/08
171
Customer pricing procedure: This can be used to differentiate the pricing procedure customer wise. This is linked with Customer master record. 172
Document pricing procedure: This can be used to differentiate the pricing procedure based on Sales document. This is linked with DPP in Document maintenance. 173
174
175
176
177
Pricing Procedure Determination
178
T. CODE:
OVKK
179
180
Maintain Condition records
181
T. CODE:
VK11
Key combination: This is for fixing the values in records. This dependent on the no.of tables in the access sequence. 182
183
184
Now.. the effect In Sales Order 185
T. CODE:
VA01
DC to goto Conditions tab page
186
187
Price Agreements Simple price
Detailed price
agreements
agreements
product
pricing scales
customer
rebates
customer & material
customer expected
customer group &
price
material
188
Order Processing Functionality Delivery scheduling Availability check Transfer of requirements to MRP Pricing Credit check Shipping point & route determination Foreign trade & license processing Document flow 189
Delivery Scheduling Automatic scheduling of essential shipping
activities ... Calculated using defined activity times ... Resulting in scheduled activity dates
Determined using backward and forward
scheduling rules
190
Delivery Scheduling Structure of sales documents
Header Line item # 1 Schedule line # 1 Schedule line # 2 Line Item # 2 Schedule line # 1 191
Delivery Scheduling — Terminology Transportation lead time — time required to
schedule transportation Pick/Pack time — time required for picking and packing Load time — time required to load Transit time — time required to transport goods from shipping point to ship-to
192
25 Order Date 25th
Material Availability 26th
Transp. Sched.
Loading
27th
28th
Transp. Sched. Time
Requested Delv. Date
Goods Issue 29th
Loading Time (1 day)
31st
Transit Time (2 days)
(1 day)
Pick & Pack Time (2 days)
193
27 Material Availability 26th
Order Date 27th
Transp. Sched. 27th
Goods Issue 29th
Loading 28th
Transp. Sched. Time
Requested Delv. Date 31st
Loading Time
Transit Time
(1 day)
(2 days)
(1 day)
1
New Delv. Date
Pick & Pack Time (2 days)
194
Availability Check Determines the material availability date Considers inward and outward movement
of inventory — customizable Influences partial deliveries by proposing a quantity that can be delivered on
the requested date (complete delivery) determines the earliest date for full delivery determines the number and dates for partial deliveries to fulfill the order 195
Availability Check In determining the material availability date
the system can include specific stocks if selected, such as: Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock
196
Transfer of Requirements to MRP Ordered quantities are ed to MRP (MM) Controlled by the schedule line category Blocking of documents can affect
requirements ing — delivery block
197
Credit Check Efficient means to implement credit
management Integrated with FI — via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting
198
Shipping Point & Route Determination A shipping point is determined for each
line item — shipping point determination A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time
199
Foreign Trade & License Processing Predefined trade areas — NAFTA, EU Automated reporting for trade areas Automated controls license management embargo lists control by customer, country, product, point in time
200
201
Shipping Overview Comprehensive functionality to
picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management
202
Shipping Overview Order Order Order Delivery Order Combination
Order
Order
Delivery Delivery
Delivery
Delivery Partial Delivery
Complete Delivery 203
Shipping Overview Delivery creation activities checks order and materials to determine if a delivery is possible — delivery block, incompleteness confirms availability confirms export/foreign trade requirements determines total weight & volume
204
Shipping Overview Delivery creation activities generates packing proposal considers partial deliveries updates route assignment assigns picking location determines batches updates sales order — status, delivery qty
205
Deliveries & Delivery Notes The Delivery Note
Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities
Picking Delivery Note
Packing Status
Loading Post Goods Issue
206
Delivery Due List Produces a work-list of deliveries Encomes deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries
207
Picking Quantities based on delivery Assigned date when picking should begin Automated storage location assignment s serial number tracking and batch
management Integrated with Warehouse Management (WM)
208
Packing Identifies which packaging is to be used for
specified products Identifies and updates s associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced
209
Goods Issue Event that indicates the change in
ownership of the products Reduces inventory Automatically updates the G/L s Ends the shipping process and prevents changes to the shipping documents
210
Goods Issue General ledger
Inventory 750
Cost of goods sold 750
211
Billing Overview Automated invoicing based on sales orders
and/or deliveries Functionality for processing credit/debit memos and rebates Integration with FI & CO-PA Updates customer’s credit data Can create pro forma invoices
212
Automatic Assignment Defines the G/L s that billing entries are posted to — revenue, deduction, freight charges Applic Condi Chart Sal ation tion of es Type Acco Org KOF CHR SOx V unts .x I
Cu Acco G/L st unt Accoun Ac Key t 01 ER 61000 ct. L T 0 Grp From From From From From FromFrom . Pricing Sales Table Sales Sales Customer Table Doc. Doc. Doc.Master Proc 213
Revenue Determination A process to establish the revenue s to which prices, discounts, and surcharges are posted. Usage: You will need to determine the s to be posted in
several different areas G/L s for posting sales revenue, sales deductions, and VAT are to be determined automatically when data is transferred from the billing document to FI When processing cash sales, a G/L must be set in the document for cash settlement When using payment cards, you also need to post to differing G/L s. 214
Revenue Determination
215
Revenue Determination
determination is carried out using the condition
technique. Depending upon the billing type, an determination procedure is assigned for G/L s. This determination procedure contains one or more condition types to which an access sequence is assigned. This access sequence is composed of individual accesses in the form of condition tables. The condition tables contain the fields and/or field combinations upon which sales revenue determination depends. The key fields are filled with document data, so that the system can search for a corresponding G/L for the relevant combination. If an access determines a G/L , then it is set in the ing document and the search is terminated.
216
Revenue Determination
Pre requisites to perform Revenue Determination Check Customer Master data Relevant for Assignment Check Material Master data Relevant for Assignment
Step to perform Revenue Determination Create condition table with key combinations Create Access sequence with key combinations Create condition type Define Determination Procedure Assign Determination Procedure to billing document type Define keys Assign keys to Pricing Procedure Assign G/L s
217
Revenue Determination Pre requisites to perform Revenue Determination Step 1: Check Master data Relevant for Assignment Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – check Master data Relevant for Assignment - Select Material: Assignment Groups In this grouping the material like trading goods, service item, finished products etc.., will be done. After this the group has to be assign in material master data – sales/sales organization data 2 tab.
218
Revenue Determination Step 2: Check Master data Relevant for Assignment Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – check Master data Relevant for Assignment - Select Customer: Assignment Groups In this grouping the customers like Domestic revenues, Foreign revenues, etc.., will be done. After this the group has to be assign in customer master data – sales area data – billing tab..
219
Revenue Determination Step to perform Revenue Determination Step 1: In this step we have to create condition table with key combinations. Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define dependencies of revenue determination T-Code: V/12 Ex: 1. Customer group / Material group / key 2. Customer group/ key
220
Revenue Determination
Step 2: In this step we have to create Access sequence with key combinations. Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define Access sequence and determination type
221
Revenue Determination Step 3: In this step we have to create condition type Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define determination type There are two condition types available. 1. KOFI determination with out controlling 2. KOFK determination with controlling Here an determination type will be assigned to an Access sequence
222
Revenue Determination Step 4: Define Determination Procedure type Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Determination Procedure Define Determination Procedure
223
Revenue Determination Step 5: Assign Determination Procedure to billing document type Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Determination Procedure Assign Determination Procedure to billing document type
224
Revenue Determination Step 6: Define and Assign keys Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Keys Define keys
225
Revenue Determination Step 7: Define and Assign keys Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Keys Assign keys to Pricing Procedure
226
Revenue Determination Step 8: Assign G/L s Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination –Assign G/L s Revenue Determination
227
Separate invoice per delivery
Collective Invoice
Order
Order Order
Invoice Split
Order
Delivery
Invoice
Delivery
Invoice
Delivery Delivery
Invoice
Delivery Delivery
Invoice Invoice 228
Billing Documents Explicitly specify documents Billing due list — builds a worklist of invoices
that should be generated
Automatic posting to FI
229
Billing Documents General ledger
Revenue 2000
Customer 2000
A/R recon. 2000
230
Billing Plans Periodic — total amount for a planned
billing period Milestone — distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment — evenly proportioned amounts and defined payment dates Resource related — consumed resources such as service or consulting 231
Sales Order
Billing Plan
Sold-to: QAZ Industries Delivery Date : 06/20/97 Material : 546-dk1 Generator Price : $300,000 Billing Description % Value Billing Milestone Billing date 11/20/96 01/20/97 04/20/97 05/20/97 06/20/97
Contract Assembly Operational Acceptance Final invoice
10 40 40 10 --
block 30,000 120,000 120,000 x 30,000 x -x
x x x x
status x x
232
• Contracts • Schedule Agreements
233
Contracts Defined quantities and validity period for a
customer The contract is fulfilled by orders placed against the contract - release orders Contracts are automatically updated through release order processing Pricing can be assigned to a contract
234
Contract Target Qty: 900 Order Qty: 700
Release Order Order Qty: 200
.. . Contract Target Qty: 900 Order Qty: 750
Release Order Order Qty: 150 235
Scheduling Agreements Defines specific product quantities and
delivery dates for a customer Schedule lines and processed through standard delivery processing Availability check is performed during creation and quantities are ed to MRP System automatically updates delivered quantities 236
Scheduling Agreement Date 05/15 06/15 07/15 08/15
Qty 100 100 200 300
Delivery 5/10 100 Delivery 6/10 100 Delivery 7/10 200 Delivery 8/10 300 237
Backorder Processing Rescheduling
238
Backorders Backorder processing determines which orders have unconfirmed quantities by customer or material sort the orders according to priority assign available stock to outstanding orders or reassign confirmed quantities to high-profile orders
239
Backorders Rescheduling updates the orders with the results of the
availability check can be used to manage the distribution of available inventory when demand is greater than supply
Best if run in batch mode, rescheduling can
be very time consuming
240
Return Order Goods Receipt Quality Inspection Credit Memo
241
1
2
3
Order
Return
Delivery
Invoice
Returns Delivery
Return to Inventory
Credit Memo
242
Customer Returns Returns document Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price Return delivery Issues a goods receipt to place material into
inventory
243
Customer Returns Credit memo Billing block must be cleared from Return Posts to FI Can be processed in batch (background) Can be processed collectively (grouped)
244
245
Bar Coded Documents
Printed Documents
SAP Document
Email
FAX EDI
Workflow
246
Communication — Output Output — traditional forms or electronic
communications produced for internal or external partners Assigned to business partners & sales documents Definable media — EDI, fax, print Highly customizable — Sapscript
247
Communication — Text Texts are used for internal and external
communication Created for business partners, materials, header or item level of sales documents — order, delivery, billing, picking lists Pricing Process Standard pricing calculates the gross price, then
applies discounts, surcharges and applicable taxes to arrive at the final price final price = gross price - discounts + surcharges + taxes
Cost-plus pricing determines the base cost and applies
the appropriate discounts, surcharges and taxes final price = cost - discounts + surcharges + taxes
248
CREDIT MANAGEMENT
AN OVERVIEW
249
CREDIT MANAGEMENT OBJECTIVE Types of Credit Check Customizing Credit checks Releasing of Blocked Documents Integration with …FI Summary
250
Objective Credit management enables you to monitor, evaluate and control credit situations and credit allocations. • By carrying out credit checks according to different criteria and at different levels • By Automatic notification to the responsible employees • By Allocation of different authorizations to credit representatives according to certain criteria
251
Customer Credit Management Over View General Data Address Central data Credit Control Area Data Status Payment Issue 252
Simple Credit check Automatic Credit check Static credit check Dynamic credit check
253
The Simple Credit check compares the Payer CMR’s Credit limit to the total of the net Document Value and value of all open items
254
Features in CCMR Credit Limit : Defines the credit limit amount in the currency of the credit control area. Risk Category : Enables the credit manager to classify customers according to commercial risk. Along with the document type, the risk category helps to determine which kind of credit check the system should carry out automatically. Credit Representative Group: Defines a group of credit personnel, consists of credit manager and a number of representatives - who are responsible for processing credit holds. 255
TOTAL LIMIT: It is the credit limit which a customer can Avail in all credit control areas he is assigned to. INDIVIDUAL LIMIT:it is the maximum credit limit allowed for a customer in a credit control area
256
COMPANY CODE
CUSTOMER
CCA
RISK CATEGORY
Sales Area
TRANSACTION TYPE CREDIT GROUP
CREDIT CHECK 257
CREDIT GROUPS 01 – ORDER 02 – DELIVERY 03 – GOODS ISSUE
Sales Doc. Types OR D 01
DELIVERY GI 02 03
Credit Check Activation at Item Category Level 258
259
Dynamic Credit Check Executed
260
Status of Blocked Delivery Documents 261
Processing an ing Transaction Using Credit Management Credit Management
Sales and Distribution
Enter customer credit data
Financial ing
Customer TRIL Co. ( Medium Risk ) Credit Limit 5,00,000
Enter customer Order Order 2046 TRIL Co 4,000
Mail Box Blocked Sales Orders TRIL Co 5,000 SWAL Co 6,000 Mail Box Credit Information System Customer Release Order
Credit Limit Exceeded Mail to Credit Repre Order Blocked Shipping , Billing Incoming Payment 262
Releasing Blocked Documents
Sales Documents Delivery Documents Sales & Delivery Documents
263
RISK MINIMIZING TOOLS
• Documentary payment (for example, letters of credit). • Payment cards • Export credit insurance (external link)
264
Integration With …FI Φ Define Risk Categories Φ Define Groups for each Credit Control Area Φ Define Credit Representative Groups Φ Define Credit Representatives
265
SALES & DISTRIBUTION CONSIGNMENT PROCESS
266
CONSIGNMENT PROCESS CONSIGNMEN T FILL-UP
CONSIGNMEN T PICK-UP
CONSIGNMEN T ISSUE
CONSIGNMEN T RETURN 267
CONSIGNMENT PROCESS In consignment processing, goods are delivered
to the customer but remain the property of the company until they are actually used. An invoice is not created until the customer withdraws the goods from the consignment stock. The customer has the right to return consignment goods up until that point. You can use the special stock partner function if the consignment stocks are managed at a central point rather than by the sold-to party. 268
You process consignment fill-up with order type KB. The goods issue sets up a special stock at the customer's. However, the goods remain in the valuated stocks of the delivering plant. This transaction isn't billed because the consignment stock remains the property of your company. 269
T CODE: VOV8
270
Configuration – Item Category T CODE: VOV7
271
Consignment issue is processed with order type KE. When goods are issued, both the customer special stock and the stock in the delivering plant are reduced. This transaction is relevant for billing. 272
T CODE: VOV8
273
274
T CODE: VOV7
275
If you want to reverse a consignment issue, you can process this with document type KR (consignment return). The goods issue sets up the special stock at the customer's again. A credit memo is generated based on the consignment returns.
276
T CODE: VOV8
277
278
T CODE: VOV7
279
If the customer returns the goods, you can represent this with order type KA (consignment pick-up). This transaction credits the special customer stock during the goods issue. Like the consignment fill-up, this transaction is not relevant for billing. 280
T CODE: VOV8
281
282
T CODE: VOV7
283
THIRD PARTY PROCESS COMPANY
CUSTOMER
VENDOR
284
THIRD PARTY PROCESS THIRD PARTY PROCESS (VENDOR DELIVERS PRODUCT TO CUSTOMER on Customer
Requirement) INDIVIDUAL PURCHASE ORDER NO VENDOR DELIVERY TO CUSTOMER Item categories OR+BANS-------------TAS ( THIRD PARTY) OR+BANC--------------TAB (IPO) REQUIREMNETS: 1 VENDOR 2.MATERIAL MASTER SALES ORG 2 ITEM CAT GRP(RT SIDE)- BANS OR BANC 3. MAINTAIN PURCHASING TAB PAGE IN MATERIAL MASTER 285
An over view
286
Rebates A rebate is a special discount which is paid
retroactively to a customer. This discount is based on the customer's
sales volume over a specified time period.
287
Why Rebates ? Rebates are frequently offered to customers to promote sales and build customer loyalty.
288
Contains • Processing rebates • Creating rebate agreements • Settling rebates •Rebate agreement types
289
290
Creating Rebate Agreements The rebate agreement is created with
reference to a rebate agreement type. Condition records are linked to the rebate agreement specifying the rebate rate and the accrual rate. With the rebate agreement, you can specify: 1. The condition types used with this rebate agreement type 2. validity period proposal
291
292
293
Rebate Processing
Rebate processing begins
by creating a rebaterelevant billing document. The valid rebates are
determined by the pricing procedure using the rebate basis subtotal. Each rebate condition
type has an assigned access sequence. The system uses the
access sequence to search for the valid rebate condition records. If valid condition records are found, the accrual rate is read. 294
295
296
Rebate Agreement Types
297
Summary Rebates are frequently offered to customers to
promote sales In order to use the rebate functionality of the system, Check whether rebate processing is active for customer, billing type F2, and sales organization. Create a rebate agreement for rebate recipient. Make an order---dly---billing---a/c to release. Once accruals piled in s go for settlements. 298
Logistics Information System Inventory Management Purchasing Sales and Distribution Production Plant Maintenance Quality Management
299
SIS
Overview
Flexible information system designed to
business planning, forecasting and reporting Pre-defined catalog of performance measures and reports On-demand access to reports and exceptions Data maintained in a separate database
300
Inventory Information System Standard Analysis Material Plant Storage Location MRP Controller Material Groupings
301
Purchasing Information System Standard Analysis Material Vendor Material Group Purchasing Group Purchasing Documents
302
Sales Information System Standard Analysis 5 Pre-defined drill-down reports Customer Material Sales Organization Shipping Point SD Documents
303
Production Information System Standard Analysis Product Group Material Work Center Production Resources and Tools
304
Reporting Tools Value display - absolute or percentage Top N - top 10, top 100, etc. Sorted - ascending or descending ABC Classification Graphics - 2D, 3D
305
1
Enterprise Resources Planning
2
Evolution of ERP
-
1960s: Inventory Control 1970s: Material Requirement Planning (MRP) 1980s: Manufacturing Resources Planning (MRP-II) 1990s: Enterprise Resource Planning (ERP)
3
1960s Inventory Management & Control combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. •identifying inventory requirements •setting targets •providing replenishment techniques and options • monitoring item usages, reconciling the inventory balances, and reporting inventory status. 4
1970s Material Requirement Planning (MRP) •software applications for scheduling production processes. •schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.
5
1980s Material Requirement Planning
(MRP II)
Manufacturing Requirements Planning or MRP II utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution Greater reductions due to the integration of production & Inventory with ing and HR.
6
1990s Enterprise Resource Planning (ERP) Multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for ing marketing, finance, ing and human resources. 7
Enterprise Where a transaction takes place. Where customers get the
satisfaction. Where the resources are available
for the peoples needs. 8
Why an ERP 1. Reduction of organization’s operating costs 2. integrates all parts of an organization 3. Integration Increases the efficiency of operations 4. Integration of information systems enables seamless flow of information across the organization. 5. Enables consolidation of different software in the organization 6. Helps in better customer service 9
Resources Money Men Machines Materials 10
Planning Proper Planning and Optimization of the
valuable resources make enterprise run into profits. Def of ERP
A Software Solution that addresses the ENTERPRISE NEEDS taking the PROCESS VIEW of an organization to meet the ORGANIZATIONAL GOALS tightly INTEGRATING all functions of an enterprise. 11
12
13
14
15
ERP for Managers • Effective communication • Better decision making • Business process re-engineering help to
reduce confusion and conflict. • Tailor-made on any issue. • Provides information on any stage of a business process
16
SAP MRP II 1972 ERP with R/2 architecture 1980s ERP with R/3 Architecture 1992 mySAP in 2005
17
Problems Tackled by ERP Systems
Material Shortages Productivity Enhancements Customer Service Cash Management Inventory Problems Quality Problems
18
ERP Products SAP BAAN Oracle APPS People Soft JD Edwards Marshall Etc..
19
Domain Share Of SAP
20
SAP & Competitors SAP R/3 had competition with Software giants like Oracle Corp, People Soft & Bann. Oracle with its E-biz suit packed to excel with 142 modules. People Soft with its extra ordinary performance in HR has stormed the market. But finally failed to gain the confidence of Big Enterprises. Result is SAP Has become giant in ERP.
21
Few SAP Customers IBM COMPAQ Hewlett Packard AMD Boeing Mercedez Toyota Lucent Hitachi Nike
TATA’s Dr.Reddy’s Labs Ranbaxy L& T Reliance Industries Glaxo Mahindra & Mahindra Hero Honda Growel Colgate Palmolive
22
Consulting Companies Price Water House Coopers. KPMG. Siemens. Delloitte. Accenture. Cap Gemini. IntelliGroup TCS.
23
SAP R/3 What is all about
Systems Applications & Products in Data Processing 24
SAP F u n c t io n a l FI/CO
T e c h n ic a l
(Finance & Controlling)
S & D (Sales & Distribution) HR (Human Resource) MM (Material Management) PP (Production Planning)
ABAP/4 Advanced Business
A d m in is t r a t io n
BASIS
Application Programming
Business Application
CA
Software Integrated
Cross Applications
Solutions
PS (Project Systems) QM (Quality Management) PM (Plant Maintenance)
Advanced
BW, APO, CRM, SRM, SEM, SCM,…..
ERP -2 Products
EP, XI, Net weaver,….. 25
THE SAP COMPANY SAP AG in 2011revenues: €6,520 million 60,100 installations 19,300 companies run SAP Providing 23 Industry Solutions 28,654 SAP employees (March 2003) 12 million s in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership More than 1,500 partners
26
SAP Milestones over 30 years
27
The SAP World SD
FI
Sales & Distribution
Financial ing
MM
CO
Materials Mgmt.
Controlling
PP
QM
AM
R/3
Production Planning
Fixed Assets Mgmt.
PS
Client / Server
Quality Management PM Plant Maintenance
HR
Human Resources
WF
IS
Project System
Workflow
Industry Solutions
28
SAP R/3 Customer Installations by Industry Others 11.5% SAP BANKING 2.0% SAP MEDIA 2.3% SAP HEALTHCARE 2.3% Metal, Paper & Wood Products 2.8% Services 3.1% SAP OIL & GAS 3.2% SAP TELECOMMUNICATIONS 3.4%
SAP HIGH TECH & ELECTRONICS 11.3% SAP ENGINEERING & CONSTRUCTION 10.5%
Worldwide
SAP CONSUMER PRODUCTS 10.3%
SAP PHARMA CEUTICALS 3.4% SAP PUBLIC SECTOR 3.4%
SAP CHEMICALS 9.5%
SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8%
SAP RETAIL 6.3%
Consulting & Professional Services 6.0%
29
Industry Solutions
30
Aerospace and Defense Apparel and Footwear Automotive Chemicals Consumer Products Trade Promotion Management Key Management
Distributor Reseller Management Financial Services Banking Insurances Collections and Disbursement Incentives & Commission Management Claims Management
Healthcare High Tech Media Oil&Gas Pharmaceuticals Public Sector Real Estate Retail Agency Business Category Management Store Management
Service Providers Telco
Asset & Liabilities Management
31
The SAP R/3 Architecture SAP R/3 works on Three Tier Architecture
Terminal
Application Server
Data Creation Modification Retrieval
Managing Requests
Database Server
Data Storage
32
3-Tier Client/Server Architecture Communication The Presentation Layer collects input and creates process requests. The Application Layer uses the application logic of SAP programs to collect and process the process requests. The Database Layer stores and retrieves all data.
33
•Secure Information
•Multi-Lingual
•Integrated
SAP •Multi-Currency
•Best Business Practices
•Enterprise-Wide 34
SAP - characteristics Highly Integrated solution covering entire business processes Technically capable of utilizing the network infrastructure Open system to ensure freedom to choose Provides multiple ways of configuring business processes Solutions in areas where currently no systems Workflow enabled business processes Enables to exploit the power of Intranet and Internet
35
Common SAP objectives Cost Control & increased profitability Increased productivity of all resources – man, material
& money Process Standardization Transparency in operations, resulting in better communication Shift from post-mortem scenario to predictive scenario 36
Results of Integration Focus on Business Processes Elimination of Redundant Data (Common Constant
Data) Easier Corporate Consolidation Better Managerial Control Elimination of Interfaces Faster reaction to changing structures 37
Success factors for SAP implementation Top Management Commitment & communication
down-the-line Empowerment Change management Training Compliance to methodology
38
SAP IMPLEMENTATION PHASES Project Planning Business Process Study & Analysis Installation Training Business Requirement mapping Configuration Modifications / Interfaces Data Conversion Documentation Testing Go-Live Post production 39
Implementation Methodology
40
SAP TYPICAL BLUE PRINT
41
SALES AND DISTRIBUTION
42
Customer Order
Final Payment
Picking
s Receivable
Goods Issue
Billing 43
Master Data Sales
Foreign Trade Sales
Shipping
Sales Info System
Billing Transportation
44
SD Mechanisms to execute the business
processes used in the selling, shipping and billing of products and services Tightly coupled data flow to the other SAP
modules — Integration Flexible and robust functionality that is
tailored through configuration
45
GENERAL SETTINGS COUNTRY CURRENCY TIME ZONE CALENDER
FACTORY VENDOR
UNITS OF MEASURE
CUSTOME R BASE
SALE
DELIVERY 46
ORGANIZATION STRUCTURE CREDIT CNTRL AREA
P.ORGN
CNTRL AREA COMPANY COMPANY-CODE
SHPNG PT
P.GRP SALES ORGN DIS CHNL SALES AREA
PLANT
DIVISION
SALES ORGN+DIST CHNL
SALES OFF SALES GRP EMP
EMP 47
Sales Organization Sells and distributes products, negotiates
of sales and is responsible for these business transactions Critical organization element to the definition of business markets A business transaction is linked to one Sales Organization
48
Distribution Channel Identifies how products and services reach
the customer Can be assigned to one or more Sales Organizations
49
Division Often times used to define product line
distribution Organization level to which customer specific information and requirements are maintained — e.g. pricing, partial delivery Assigned to one or more Sales Organizations
50
Sales Area Organizational element comprised of: Sales Organization Distribution Channel Division Will be used to link together the
organizational aspects of sales to customers Used for statistical analysis
51
Sales Area Domestic Sales Sales Organization SO00
Direct Distribution Channel DI
Baseball Division BB
Softball Division SB
Wholesale Distribution Channel WH
Baseball Division BB
Softball Division SB
Retail Distribution Channel RE
Baseball Division BB
Softball Division SB 52
Sales Office Typically defines a territory or market area Linked to one or more Sales Areas Optional organization structure
53
Sales Group Sales Group Sub-division of a sales office, territory or market
54
Sales Person Sales Person Defined in HR — Personnel . Specifically defines an individual rather than a position (sales rep.) in sales processing
55
Shipping Point & Loading Point Shipping Point Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point Loading Point A subdivision of the shipping point used for more specialized handling
56
r ate ial
Cu s to me r
M Master Data
Pricing 57
Customer Master Record Material Master Record CMIR Condition Master Output Materdata 58
-General
Data
Basic Unit of Measure Division Material Group Sales Unit Delivering Plant Cash discount -Tax data Country Tax category Tax classification -Quantity stipulations
Basic Data 1 - 2 Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
Min. order quantity Min. delivery quantity Delivery unit
59
Industry Sector: 1 Retail 2 Aerospace & Defense 3 Service Provider A Plant Engin./Construction B Beverage C Chemical Industry F Food and Related Products M Mechanical Engineering P Pharmaceuticals T Telecommunication W Retailing
60
FERT Finished product ROH Raw material HAWATrading goods KMAT Configurable material
61
Base Unit of Measure The Base Unit of Measure is the unit of measure in which stocks are managed within your company. Division You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). Material Group A (freely definable) key that’s used to group several materials or services for analysis/reporting as well as search by match code. Sales Unit This is the unit of measure in which the material is sold, if different from the base unit of measure. Delivering Plant is available for sale. default value only.
Plant, from which the material This is a 62
Tax data Country Tax category
Country Taxes, applicable to this material (e.g. Federal, State taxes in US, VAT in GB)
Tax classification
taxable, exempt
Quantity stipulations Min. order quantity
Min. quantity a customer can order (in base unit of measure).
Min. delivery quantity
Min. delivery quantity to a customer.
Delivery unit
Only multiples of this number will be delivered to the customer.
63
Basic Data 1 - 2 Classification Sales: sales org. 1 - 2
-Grouping
Sales: general/plant Purchasing
Matl statistics group Material pricing grp Volume rebate group Acct assignment grp Commission group Item Category group
Foreign Trade: Import Data Sales: text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
64
Matl statistics group
Helps to determine which data the system updates in the Logistics Information System (LIS).
Material pricing grp
A way to group materials with similar pricing conditions.
Volume rebate groupA material can be assigned to a volume rebate group (e.g. Low Rebate, High Rebate) if the material qualifies for rebate. Acct assignment grp
A grouping of materials with the same ing requirements (used to determine revenue and sales deduction s)
Commission group
Several materials can be assigned to the same commission group, if the commission sharing between representatives is the same for these materials (e.g. Rep.A: 6%, Rep.B: 10%, Rep C: 12%).
Item Category groupA grouping of materials, that helps the system determine the Item Category. Item Category determines how a specific item is processed by system. E.g. a text item is not relevant for pricing.
65
Basic Data 1 - 2
General data Base unit Gross weight Net weight Avail. Check Shipping data (times in days) Trans. Grp LoadingGrp Packaging material data Matl grp ship. matls General plant parameters
Classification Sales: sales org. 1 - 2 Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
Negative stock
66
General data Base unit
The Base Unit of Measure is the unit of measure in which stocks are managed within your company.
Gross weight
In Base Units of Measure.
Net weight
In Base Units of Measure.
Avail. Check
Tells the system when to do an availability check, as well as which MRP elements (such as purchase orders, reservations) to include in the check.
Shipping data (times in days) Trans. Grp
Transportation groups are groups of materials that have the same transportation requirements. For example, all goods that need refrigeration.
Loading Grp
Loading groups define materials that have the same loading requirements, such as forklift truck, or crane.
67
Packaging material data Matl grp ship. matls, or Material group shipping materials
Freely definable group name, which is used to indicate groups of materials with similar shipping materials, such as liquids or bulk, for example.
General plant parameters Negative stock
Check mark indicator, which specifies whether negative stock is allowed at that plant.
68
Basic Data 1 - 2 Classification Sales: sales org. 1 - 2
- Sales texts
Text specific to the material and in an appropriate language.
Sales: general/plant Purchasing Foreign Trade: Import Data Sales text Purchase order: text MRP 1 - 4 Forecasting Storage 1 - 2 Warehouse Management 1 - 2 Quality Management ing 1 - 2 Costing 1 - 2
69
Sales & Distribution - Customer Master -
70
Groups group determines which fields are
to be used in defining customer master data
71
Field Status Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity — create, change, or display
72
Customer Master G e n e ra l D a ta S a le s & D is tr ib u tio n D a ta
Com pany Code D a ta
73
Customer Master Centralized data for both SD & FI Segmented into three sections General data - address & communication Company code data (FI) - banking and payment information related to FI Sales data (SD) - pricing, delivery, output The sales data is specific to one sales area
and is therefore dependent on the sales organization
74
Customer Master by Sales Area Customer Sales Organization Distribution Channel Division
75
General Data — Address Customer Name Search Term Street address, City, Postal code, Country Language
General Data — Communication Telephone, Fax, Data numbers
76
General data — Control data control :
Vendor, Authorization Trading partner, Group key
Tax information :
Tax codes, Fiscal address Country code, City code VAT N, Tax jurisdiction code Equalization tax, Sole proprietor Tax on sls/pur.
Reference data / area : Industry:
International Locator No. Transport Zone Express station Train station Location code
77
General Data — Marketing
Classification : Nielsen ID Customer classification Industry Industry codes Operating figures : Annual sales Number of employees Fiscal year variant Sales prospecting : Legal status 78
General Data — Payment Transactions
Bank details
Country Bank Key holder Bank Control Key Collection
79
General Data — Unloading points
Unloading point Customer factory calendar Default Unloading Point Goods receiving hours
80
General Data — Foreign trade
Country key for export control of customerTable of Denial Orders list (TDO) Special Designated Nationals list (SDN) Diversion High Risk Profile list (DHRP) Usage and Classification 81
General Data — persons
Name Telephone number Department First name Form of address (e.g. Mr., Ms.) Function 82
Company Code Data ing Information
ing info Reconciliation Sort key Head office Interest calculation Interest indicator Interest calculation frequency Last key date Reference data
Buying group
83
Company Code Data Payment Transactions
Payment data: Payment Tolerance group Automatic Payment Transactions: Payment methods Alternative payer Lockbox
84
Company Code Data Correspondence
Dunning data :
Dunning procedure Dunning recipient
Correspondence :
number at customer Customer
Payment notices to :
Customer Sales ing Legal 85
Company Code Data Insurance
Export credit insurance : Policy number Institution number Amount insured Valid until Lead months Deductible
86
Sales Data — Sales area
Sales order : Sales district Sales office Sales group Order probability Item proposal at customer Pricing / Statistics: Price group Customer pricing procedure Price list type Customer statistical group 87
S & D Data — Shipping
Shipping :
Delivery priority Shipping conditions Delivering plant Order combination Batch split allowed
Partial Delivery: Complete delivery Partial delivery of item Maximum part deliveries
88
S&D Data — Billing
Billing section : Manual invoice maint. Rebate Pricing Billing schedule Invoice list schedule Delivery and payment : Inco Payment ing : assignment group Taxes:
Tax requirements for the customer 89
S&D Data — Partner functions
The different partners are assigned • • • • •
SP BP PY SH …
Sold-to-party Bill-to-party Payer Ship-to-party additional Partner function(s)
90
Asg Additional Partners — Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Bill-to Payer Ship-to Ship-to : 10018 — Siesta Baseball League - Vera Cruz, NM — Sold-to : 10018 Sold-to Bill-to : 10018 Payer : 10018 Payer Ship-to Ship-to : 10018 Bill-to Ship-to : 10249 - Bakersfield, CA
Ship-to 91
Sales & Distribution - Business Partners -
92
Business Partners Defines all of the parties involved in a
business transaction and differentiates between their roles — customer, carrier, employees, customer , etc. Through customizing the system automatically assigns partners to the customer master and to transactions
Sold-to
Ship-to
Bill-to
Payer 93
Business Partners The system creates these four business
partners by default. All four are required. All four may be the same or may be
different. Since these are automatically assigned
partners you may need to add additional partners to carry out your business Sold-to Ship-to Bill-to Payer transactions. 94
Business partners — Sold-to Customer that orders the goods Can perform all primary partner functions — soldto, ship-to, payer, bill-to Primary type of business partner Cannot be linked to other sold-to partners
Sold-to Ship-to Bill-to Payer
95
Business partners — Ship-to Party that receives the goods Can be created as an independent partner and linked to one or more sold-to partners
Sold-to Ship-to Bill-to Payer
96
Business partners — Billto Party that receives the invoice Can be created as an independent partner and linked to one or more sold-to partners
Sold-to Ship-to Bill-to Payer
97
Business partners — Payer Party that sends the payment Can be created as an independent partner and linked to one or more sold-to partners
Sold-to Ship-to Bill-to Payer
98
Sold-to
Sold-to
Ship-to
Bill-to
Ship-to
Ship-to
Payer
Ship-to
Ship-to
Ship-to 99
100
TERMINOLOGY Partner determination procedure Partner functions Group Partner type Error group Sequence
101
Set up Partner For Customer Master Determination
For Sales Document Header For Sales Document Item For Delivery For Shipment For Billing Header For Billing Item For Sales Activities (CAS)
102
Business relationships
103
Partner types
104
• Customer Material Info. Record • Item Proposal • Listing & Exclusion • Product Substitution
105
Customer/Material Info. Record Defines a customer alias for a material & description, for example:
Material # : Glove Customer # : Pastime Glove Can further define attributes of the
material, shipping and partial delivery information specific to the product and customer Referenced in the sales order using the Ordering Party overview
106
Item Proposal Used to define frequently ordered
combinations or special assortments of products and quantities Either products or products with quantities can be selected during order entry An item proposal can be defined for a customer via the customer master record
107
Material Listing & Exclusion Used to control what products are available
for a customer or group Material Listing — defines products that can be sold to a customer Material Exclusion — defines products that cannot be sold to a customer
108
Product Substitution Material Determination Enables automatic or manual substitution of
materials during sales order processing Examples: substitute a standard product with a
promotional material substitute based on a customer preference substitute based on selection list (manual)
109
SALES CYCLE INQUIRY
CONTRACTS
SCHEDULIN G
QUOTATION
AGREEMNET S
ORDER DELIVERY
PGI
BILLLING REL TO S
INVENTORY
110
111
SALES ORDER PROCESS
Sales Activity
Sales
Inquiry
Quotation Delivery Free Of Charge
Shipping
Billing
Sales Order
Returns
Delivery
Credit Memo
Invoice
FINANCIAL ING
Debit Memo
M AT E R I ALS M AN AG E M E N T
S ALE S I N F O R M AT I O N S YS T E M
Sales
112
ORDER TO CASH PROCESS INQUIRY
SD O 2C MRP
NO
QUOTATION
AVAILABILITY CHECK
ORDER
YES
SCHEDULE LINE
DELIVERY
INVOICE FOR MANU. GOODS
INVOICE FOR FINISHED GOODS 113
SALES DOCUMENTS
•
Inquiry
Quotation Sales Order Delivery Free of Charge (Sample Goods) Returns (Customer Complaints / Damages)
114
REFERENCE DOCUMENTS
115
INQUIRY & QUOTATION
A customer or prospect may submit an inquiry to
ascertain whether you stock a certain product, what that product costs, and whether it is available by a certain deadline. The inquiry represents a request for a sales quotation from the customer. A quotation is a legally binding offer to the customer
to deliver materials or perform services on the basis of fixed conditions.
116
SALES ORDER
A customer request to the company for the delivery
of goods or services at a certain time
A sales order consists of one or several items
containing the quantity of the material or service specified for the order.
The total quantity can be subdivided into schedule
lines, which contain different partial quantities and the relevant delivery dates. 117
SALES ORDER
Item availability Sales orders follows check isthe done andorder purchase shipping point from the Is determined customer for delivery scheduling
118
RETURNS Complaints and returns functions are used when
customers want to return goods that are damaged or goods that were sent on a trial basis. You can also use complaints functionality if the wrong goods were delivered or if the delivery quantities and prices were incorrect.
Sales documents for processing complaints are Free of
charge delivery, Returns & Credit and debit memo requests
119
RETURNS DOCUMENT
120
CREDIT / DEBIT MEMO
121
INVOICE CORRECTION REQUEST
122
Sales & Distribution - Transactions -
123
Returns
Inquiry Quotation Sales Order
Contract Consignment
Cash Sale Returnable Packaging
Rush Order Debit Memo
Scheduling Agreement
Credit Memo
124
ITEM CATEGEORY FUNCTIONS
125
126
127
ITEM CATEGEORY GROUP
128
129
ITEM CATEGEORIES
130
131
132
133
ITEM CATEGEORY DETERMINATION IN SALES ORDER
134
Copy control
135
Pricing “World-class” functionality Highly customizable & extendible One of the most complex features of SAP Used to determine the net price for a material
or an order
136
Pricing Work Flow Pricing Procedure Determination
Condition Records
Pricing Procedure List Of Condition types arranged in a logical sequence
Access sequence Condition tables Fields 137
Pricing Components Pricing is based on a matrix of predefined and
custom elements Delivered element groups (a.k.a. conditions) Prices Discounts & Surcharges Freight Taxes
138
Pricing Procedure • In short, the mechanism used to arrive at the final price • Considers all of the applicable pricing conditions, e.g. material price, customer discount • Is assigned by: sales area, sold-to party and sales document type (e.g. sales order) 139
Pricing Procedure • The pricing procedure uses what SAP calls “the condition technique”. • The pricing condition technique starts with the: – – – – –
Pricing Procedure which looks at Conditions which use Access Sequences which accesses Condition tables which point to A price, discount or other condition ($)
140
R/3 Pricing Process SALES DOC. ITEM
DETERMINE PRICING PROCEDURE FOR ITEM
DETERMINE ACCESS SEQUENCE FOR EVERY CONDITION TYPE IN PRICING PROCEDURE
ACCESS THE CONDITION RECORDS AND DETERMINE PRICE
PRICE THE ITEM
SALES AREA & DOCUMENT TYPE & SOLD-TO
CONDITION TYPE AND ACCESS SEQUENCE ARE LINKED IN TABLE
CUSTOMER/MAT’L OR PRICE LIST/MAT’L OR MATERIAL
--$9.25 N/A
UNIFORM
SALES DOC. SOLD PRICING AREA TYPE TO PROCEDURE US01
A
1
USSTD
US01
B
1
USALT
UK01
A
1
UKSTD
UK02
A
1
UKSTD
KEY
ACCESS SEQUENCE
PR00 KI00 TX00 FR00
PR00 KI00 TX00 FR00
PRICING CONDITION CONDITION PROCEDURE TYPE USSTD
PRICE ELEMENT CONTROL PARAMETERS UPPER/LOWER LIMITS
CONDITION TYPE
USALT
STOPS LOOKING AFTER FINDING FIRST VALUE
LOOK FOR CONDITION ACCESS OR RECORDS IN THIS ORDER SEQUENCE DER OF CONDITION TABLES PR00
01
CUSTOMER/MATERIAL
02
PRICE LIST TYPE/MAT’L
03
MATERIAL
01
CUSTOMER/MATERIAL
PR00
PRICE
KI00
DISCOUNT
TX00
TAXES
02
PRICE LIST TYPE/MAT’L
FR00
FREIGHT
03
MATERIAL
PR00
PRICE
KI01
DISCOUNT
KI00
ETC.
ETC. 141
Configuration of Pricing
142
Menu path : IMG >SALES & DISTRIBUTION >BASIC FUNCTIONS >PRICING
143
Double Click to View field catalogue
144
FIELD CATALOGUE PRICING SD
145
718
Condition table: contains combination of key fields that form the basis for condition records
CREATION OF CONDITION TABLE 1-500 SYSTEM DEFINED 501-999 – DEFINED 146
718
147
148
149
Access sequence: It is sequential placing of condition tables in a logical order to obtain condition record.
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
TRANSACTION CODE:
V/03
165
166
TRANSACTION CODE:
V/08
167
168
169
170
TRANSACTION CODE:
V/08
171
Customer pricing procedure: This can be used to differentiate the pricing procedure customer wise. This is linked with Customer master record. 172
Document pricing procedure: This can be used to differentiate the pricing procedure based on Sales document. This is linked with DPP in Document maintenance. 173
174
175
176
177
Pricing Procedure Determination
178
T. CODE:
OVKK
179
180
Maintain Condition records
181
T. CODE:
VK11
Key combination: This is for fixing the values in records. This dependent on the no.of tables in the access sequence. 182
183
184
Now.. the effect In Sales Order 185
T. CODE:
VA01
DC to goto Conditions tab page
186
187
Price Agreements Simple price
Detailed price
agreements
agreements
product
pricing scales
customer
rebates
customer & material
customer expected
customer group &
price
material
188
Order Processing Functionality Delivery scheduling Availability check Transfer of requirements to MRP Pricing Credit check Shipping point & route determination Foreign trade & license processing Document flow 189
Delivery Scheduling Automatic scheduling of essential shipping
activities ... Calculated using defined activity times ... Resulting in scheduled activity dates
Determined using backward and forward
scheduling rules
190
Delivery Scheduling Structure of sales documents
Header Line item # 1 Schedule line # 1 Schedule line # 2 Line Item # 2 Schedule line # 1 191
Delivery Scheduling — Terminology Transportation lead time — time required to
schedule transportation Pick/Pack time — time required for picking and packing Load time — time required to load Transit time — time required to transport goods from shipping point to ship-to
192
25 Order Date 25th
Material Availability 26th
Transp. Sched.
Loading
27th
28th
Transp. Sched. Time
Requested Delv. Date
Goods Issue 29th
Loading Time (1 day)
31st
Transit Time (2 days)
(1 day)
Pick & Pack Time (2 days)
193
27 Material Availability 26th
Order Date 27th
Transp. Sched. 27th
Goods Issue 29th
Loading 28th
Transp. Sched. Time
Requested Delv. Date 31st
Loading Time
Transit Time
(1 day)
(2 days)
(1 day)
1
New Delv. Date
Pick & Pack Time (2 days)
194
Availability Check Determines the material availability date Considers inward and outward movement
of inventory — customizable Influences partial deliveries by proposing a quantity that can be delivered on
the requested date (complete delivery) determines the earliest date for full delivery determines the number and dates for partial deliveries to fulfill the order 195
Availability Check In determining the material availability date
the system can include specific stocks if selected, such as: Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock
196
Transfer of Requirements to MRP Ordered quantities are ed to MRP (MM) Controlled by the schedule line category Blocking of documents can affect
requirements ing — delivery block
197
Credit Check Efficient means to implement credit
management Integrated with FI — via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting
198
Shipping Point & Route Determination A shipping point is determined for each
line item — shipping point determination A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time
199
Foreign Trade & License Processing Predefined trade areas — NAFTA, EU Automated reporting for trade areas Automated controls license management embargo lists control by customer, country, product, point in time
200
201
Shipping Overview Comprehensive functionality to
picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management
202
Shipping Overview Order Order Order Delivery Order Combination
Order
Order
Delivery Delivery
Delivery
Delivery Partial Delivery
Complete Delivery 203
Shipping Overview Delivery creation activities checks order and materials to determine if a delivery is possible — delivery block, incompleteness confirms availability confirms export/foreign trade requirements determines total weight & volume
204
Shipping Overview Delivery creation activities generates packing proposal considers partial deliveries updates route assignment assigns picking location determines batches updates sales order — status, delivery qty
205
Deliveries & Delivery Notes The Delivery Note
Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities
Picking Delivery Note
Packing Status
Loading Post Goods Issue
206
Delivery Due List Produces a work-list of deliveries Encomes deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries
207
Picking Quantities based on delivery Assigned date when picking should begin Automated storage location assignment s serial number tracking and batch
management Integrated with Warehouse Management (WM)
208
Packing Identifies which packaging is to be used for
specified products Identifies and updates s associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced
209
Goods Issue Event that indicates the change in
ownership of the products Reduces inventory Automatically updates the G/L s Ends the shipping process and prevents changes to the shipping documents
210
Goods Issue General ledger
Inventory 750
Cost of goods sold 750
211
Billing Overview Automated invoicing based on sales orders
and/or deliveries Functionality for processing credit/debit memos and rebates Integration with FI & CO-PA Updates customer’s credit data Can create pro forma invoices
212
Automatic Assignment Defines the G/L s that billing entries are posted to — revenue, deduction, freight charges Applic Condi Chart Sal ation tion of es Type Acco Org KOF CHR SOx V unts .x I
Cu Acco G/L st unt Accoun Ac Key t 01 ER 61000 ct. L T 0 Grp From From From From From FromFrom . Pricing Sales Table Sales Sales Customer Table Doc. Doc. Doc.Master Proc 213
Revenue Determination A process to establish the revenue s to which prices, discounts, and surcharges are posted. Usage: You will need to determine the s to be posted in
several different areas G/L s for posting sales revenue, sales deductions, and VAT are to be determined automatically when data is transferred from the billing document to FI When processing cash sales, a G/L must be set in the document for cash settlement When using payment cards, you also need to post to differing G/L s. 214
Revenue Determination
215
Revenue Determination
determination is carried out using the condition
technique. Depending upon the billing type, an determination procedure is assigned for G/L s. This determination procedure contains one or more condition types to which an access sequence is assigned. This access sequence is composed of individual accesses in the form of condition tables. The condition tables contain the fields and/or field combinations upon which sales revenue determination depends. The key fields are filled with document data, so that the system can search for a corresponding G/L for the relevant combination. If an access determines a G/L , then it is set in the ing document and the search is terminated.
216
Revenue Determination
Pre requisites to perform Revenue Determination Check Customer Master data Relevant for Assignment Check Material Master data Relevant for Assignment
Step to perform Revenue Determination Create condition table with key combinations Create Access sequence with key combinations Create condition type Define Determination Procedure Assign Determination Procedure to billing document type Define keys Assign keys to Pricing Procedure Assign G/L s
217
Revenue Determination Pre requisites to perform Revenue Determination Step 1: Check Master data Relevant for Assignment Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – check Master data Relevant for Assignment - Select Material: Assignment Groups In this grouping the material like trading goods, service item, finished products etc.., will be done. After this the group has to be assign in material master data – sales/sales organization data 2 tab.
218
Revenue Determination Step 2: Check Master data Relevant for Assignment Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – check Master data Relevant for Assignment - Select Customer: Assignment Groups In this grouping the customers like Domestic revenues, Foreign revenues, etc.., will be done. After this the group has to be assign in customer master data – sales area data – billing tab..
219
Revenue Determination Step to perform Revenue Determination Step 1: In this step we have to create condition table with key combinations. Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define dependencies of revenue determination T-Code: V/12 Ex: 1. Customer group / Material group / key 2. Customer group/ key
220
Revenue Determination
Step 2: In this step we have to create Access sequence with key combinations. Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define Access sequence and determination type
221
Revenue Determination Step 3: In this step we have to create condition type Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define determination type There are two condition types available. 1. KOFI determination with out controlling 2. KOFK determination with controlling Here an determination type will be assigned to an Access sequence
222
Revenue Determination Step 4: Define Determination Procedure type Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Determination Procedure Define Determination Procedure
223
Revenue Determination Step 5: Assign Determination Procedure to billing document type Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Determination Procedure Assign Determination Procedure to billing document type
224
Revenue Determination Step 6: Define and Assign keys Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Keys Define keys
225
Revenue Determination Step 7: Define and Assign keys Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination – Define and assign Keys Assign keys to Pricing Procedure
226
Revenue Determination Step 8: Assign G/L s Menu Path: IMG – Sales and Distribution – Basic Functions – Assignment/Costing – Revenue Determination –Assign G/L s Revenue Determination
227
Separate invoice per delivery
Collective Invoice
Order
Order Order
Invoice Split
Order
Delivery
Invoice
Delivery
Invoice
Delivery Delivery
Invoice
Delivery Delivery
Invoice Invoice 228
Billing Documents Explicitly specify documents Billing due list — builds a worklist of invoices
that should be generated
Automatic posting to FI
229
Billing Documents General ledger
Revenue 2000
Customer 2000
A/R recon. 2000
230
Billing Plans Periodic — total amount for a planned
billing period Milestone — distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment — evenly proportioned amounts and defined payment dates Resource related — consumed resources such as service or consulting 231
Sales Order
Billing Plan
Sold-to: QAZ Industries Delivery Date : 06/20/97 Material : 546-dk1 Generator Price : $300,000 Billing Description % Value Billing Milestone Billing date 11/20/96 01/20/97 04/20/97 05/20/97 06/20/97
Contract Assembly Operational Acceptance Final invoice
10 40 40 10 --
block 30,000 120,000 120,000 x 30,000 x -x
x x x x
status x x
232
• Contracts • Schedule Agreements
233
Contracts Defined quantities and validity period for a
customer The contract is fulfilled by orders placed against the contract - release orders Contracts are automatically updated through release order processing Pricing can be assigned to a contract
234
Contract Target Qty: 900 Order Qty: 700
Release Order Order Qty: 200
.. . Contract Target Qty: 900 Order Qty: 750
Release Order Order Qty: 150 235
Scheduling Agreements Defines specific product quantities and
delivery dates for a customer Schedule lines and processed through standard delivery processing Availability check is performed during creation and quantities are ed to MRP System automatically updates delivered quantities 236
Scheduling Agreement Date 05/15 06/15 07/15 08/15
Qty 100 100 200 300
Delivery 5/10 100 Delivery 6/10 100 Delivery 7/10 200 Delivery 8/10 300 237
Backorder Processing Rescheduling
238
Backorders Backorder processing determines which orders have unconfirmed quantities by customer or material sort the orders according to priority assign available stock to outstanding orders or reassign confirmed quantities to high-profile orders
239
Backorders Rescheduling updates the orders with the results of the
availability check can be used to manage the distribution of available inventory when demand is greater than supply
Best if run in batch mode, rescheduling can
be very time consuming
240
Return Order Goods Receipt Quality Inspection Credit Memo
241
1
2
3
Order
Return
Delivery
Invoice
Returns Delivery
Return to Inventory
Credit Memo
242
Customer Returns Returns document Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price Return delivery Issues a goods receipt to place material into
inventory
243
Customer Returns Credit memo Billing block must be cleared from Return Posts to FI Can be processed in batch (background) Can be processed collectively (grouped)
244
245
Bar Coded Documents
Printed Documents
SAP Document
FAX EDI
Workflow
246
Communication — Output Output — traditional forms or electronic
communications produced for internal or external partners Assigned to business partners & sales documents Definable media — EDI, fax, print Highly customizable — Sapscript
247
Communication — Text Texts are used for internal and external
communication Created for business partners, materials, header or item level of sales documents — order, delivery, billing, picking lists Pricing Process Standard pricing calculates the gross price, then
applies discounts, surcharges and applicable taxes to arrive at the final price final price = gross price - discounts + surcharges + taxes
Cost-plus pricing determines the base cost and applies
the appropriate discounts, surcharges and taxes final price = cost - discounts + surcharges + taxes
248
CREDIT MANAGEMENT
AN OVERVIEW
249
CREDIT MANAGEMENT OBJECTIVE Types of Credit Check Customizing Credit checks Releasing of Blocked Documents Integration with …FI Summary
250
Objective Credit management enables you to monitor, evaluate and control credit situations and credit allocations. • By carrying out credit checks according to different criteria and at different levels • By Automatic notification to the responsible employees • By Allocation of different authorizations to credit representatives according to certain criteria
251
Customer Credit Management Over View General Data Address Central data Credit Control Area Data Status Payment Issue 252
Simple Credit check Automatic Credit check Static credit check Dynamic credit check
253
The Simple Credit check compares the Payer CMR’s Credit limit to the total of the net Document Value and value of all open items
254
Features in CCMR Credit Limit : Defines the credit limit amount in the currency of the credit control area. Risk Category : Enables the credit manager to classify customers according to commercial risk. Along with the document type, the risk category helps to determine which kind of credit check the system should carry out automatically. Credit Representative Group: Defines a group of credit personnel, consists of credit manager and a number of representatives - who are responsible for processing credit holds. 255
TOTAL LIMIT: It is the credit limit which a customer can Avail in all credit control areas he is assigned to. INDIVIDUAL LIMIT:it is the maximum credit limit allowed for a customer in a credit control area
256
COMPANY CODE
CUSTOMER
CCA
RISK CATEGORY
Sales Area
TRANSACTION TYPE CREDIT GROUP
CREDIT CHECK 257
CREDIT GROUPS 01 – ORDER 02 – DELIVERY 03 – GOODS ISSUE
Sales Doc. Types OR D 01
DELIVERY GI 02 03
Credit Check Activation at Item Category Level 258
259
Dynamic Credit Check Executed
260
Status of Blocked Delivery Documents 261
Processing an ing Transaction Using Credit Management Credit Management
Sales and Distribution
Enter customer credit data
Financial ing
Customer TRIL Co. ( Medium Risk ) Credit Limit 5,00,000
Enter customer Order Order 2046 TRIL Co 4,000
Mail Box Blocked Sales Orders TRIL Co 5,000 SWAL Co 6,000 Mail Box Credit Information System Customer Release Order
Credit Limit Exceeded Mail to Credit Repre Order Blocked Shipping , Billing Incoming Payment 262
Releasing Blocked Documents
Sales Documents Delivery Documents Sales & Delivery Documents
263
RISK MINIMIZING TOOLS
• Documentary payment (for example, letters of credit). • Payment cards • Export credit insurance (external link)
264
Integration With …FI Φ Define Risk Categories Φ Define Groups for each Credit Control Area Φ Define Credit Representative Groups Φ Define Credit Representatives
265
SALES & DISTRIBUTION CONSIGNMENT PROCESS
266
CONSIGNMENT PROCESS CONSIGNMEN T FILL-UP
CONSIGNMEN T PICK-UP
CONSIGNMEN T ISSUE
CONSIGNMEN T RETURN 267
CONSIGNMENT PROCESS In consignment processing, goods are delivered
to the customer but remain the property of the company until they are actually used. An invoice is not created until the customer withdraws the goods from the consignment stock. The customer has the right to return consignment goods up until that point. You can use the special stock partner function if the consignment stocks are managed at a central point rather than by the sold-to party. 268
You process consignment fill-up with order type KB. The goods issue sets up a special stock at the customer's. However, the goods remain in the valuated stocks of the delivering plant. This transaction isn't billed because the consignment stock remains the property of your company. 269
T CODE: VOV8
270
Configuration – Item Category T CODE: VOV7
271
Consignment issue is processed with order type KE. When goods are issued, both the customer special stock and the stock in the delivering plant are reduced. This transaction is relevant for billing. 272
T CODE: VOV8
273
274
T CODE: VOV7
275
If you want to reverse a consignment issue, you can process this with document type KR (consignment return). The goods issue sets up the special stock at the customer's again. A credit memo is generated based on the consignment returns.
276
T CODE: VOV8
277
278
T CODE: VOV7
279
If the customer returns the goods, you can represent this with order type KA (consignment pick-up). This transaction credits the special customer stock during the goods issue. Like the consignment fill-up, this transaction is not relevant for billing. 280
T CODE: VOV8
281
282
T CODE: VOV7
283
THIRD PARTY PROCESS COMPANY
CUSTOMER
VENDOR
284
THIRD PARTY PROCESS THIRD PARTY PROCESS (VENDOR DELIVERS PRODUCT TO CUSTOMER on Customer
Requirement) INDIVIDUAL PURCHASE ORDER NO VENDOR DELIVERY TO CUSTOMER Item categories OR+BANS-------------TAS ( THIRD PARTY) OR+BANC--------------TAB (IPO) REQUIREMNETS: 1 VENDOR 2.MATERIAL MASTER SALES ORG 2 ITEM CAT GRP(RT SIDE)- BANS OR BANC 3. MAINTAIN PURCHASING TAB PAGE IN MATERIAL MASTER 285
An over view
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Rebates A rebate is a special discount which is paid
retroactively to a customer. This discount is based on the customer's
sales volume over a specified time period.
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Why Rebates ? Rebates are frequently offered to customers to promote sales and build customer loyalty.
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Contains • Processing rebates • Creating rebate agreements • Settling rebates •Rebate agreement types
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Creating Rebate Agreements The rebate agreement is created with
reference to a rebate agreement type. Condition records are linked to the rebate agreement specifying the rebate rate and the accrual rate. With the rebate agreement, you can specify: 1. The condition types used with this rebate agreement type 2. validity period proposal
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Rebate Processing
Rebate processing begins
by creating a rebaterelevant billing document. The valid rebates are
determined by the pricing procedure using the rebate basis subtotal. Each rebate condition
type has an assigned access sequence. The system uses the
access sequence to search for the valid rebate condition records. If valid condition records are found, the accrual rate is read. 294
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Rebate Agreement Types
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Summary Rebates are frequently offered to customers to
promote sales In order to use the rebate functionality of the system, Check whether rebate processing is active for customer, billing type F2, and sales organization. Create a rebate agreement for rebate recipient. Make an order---dly---billing---a/c to release. Once accruals piled in s go for settlements. 298
Logistics Information System Inventory Management Purchasing Sales and Distribution Production Plant Maintenance Quality Management
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SIS
Overview
Flexible information system designed to
business planning, forecasting and reporting Pre-defined catalog of performance measures and reports On-demand access to reports and exceptions Data maintained in a separate database
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Inventory Information System Standard Analysis Material Plant Storage Location MRP Controller Material Groupings
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Purchasing Information System Standard Analysis Material Vendor Material Group Purchasing Group Purchasing Documents
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Sales Information System Standard Analysis 5 Pre-defined drill-down reports Customer Material Sales Organization Shipping Point SD Documents
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Production Information System Standard Analysis Product Group Material Work Center Production Resources and Tools
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Reporting Tools Value display - absolute or percentage Top N - top 10, top 100, etc. Sorted - ascending or descending ABC Classification Graphics - 2D, 3D
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