Sales and Distribution

Topics: Inventory, SAP AG, Marketing Pages: 11 (2692 words) Published: August 2, 2013
LEARNING OBJECTIVE: Understand and perform an integrated order-to-cash cycle .The goal of SAP Sales and Distribution (also referred to as SAP Supply Chain Management-Order Fulfillment) is to provide with a complete knowledge of the Sales Cycle implementation using SAP. Project Management and some background of the SAP Transportation System is also part of the case study. The basic learning is to perform the functional duties of a SAP SD Consultant and develop a strong conceptual and practical knowledge in all areas of the SD module. To sum it all, the key areas taken care of by Sales and Distribution are: •Manage sales order creation and pricing condition updates •Identify ways to improve order-to-cash business processes •Source materials for customer inquiries, quotations, and orders •Enhance day-sales-outstanding to improve and accelerate A/R processing and cash flow 08

Fall
SALES AND DISTRIBUTION

The sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the order to Cash process . It includes the following information and process: The Order to Cash bundle allows businesses and their partners to support the most basic business process of all: order-to-cash. The order to cash process subsumes everything from the order, packaging, and delivery of goods and services to depositing the money in the bank. It provides a wide variety of enterprise services that can be used to build flexibility and innovation into this important process. The major activities of order-to-cash process are explained hereunder: 1. SALES ORDER ENTRY:

It is a document in which we collect all the customer orders and the requirements for the goods or services. The sales order includes the following names: * Customer Information
* Material/service and quantity
* Pricing (conditions)
* Specific delivery dates and quantities
* Shipping Information
* Billing Information
2. CHECK AVAILABILITY:
It determines the material availability date and also considers all inward and outward inventory movements. The proposed three methods of delivery are: A.ONE-TIME DELIVERY: When the customer’s requested delivery date can be confirmed and the goods ordered are delivered in one slot. B.COMPLETE DELIVERY: When the customer’s requested complete delivery is confirmed at a future date. C.DELAYED PROPOSAL: When the customer’s requested delivery is confirmed in partial quantities at future dates. 3. PICK MATERIALS:

The Picking process involves taking goods from a storage location and staging the goods in a picking area where the goods will be prepared for shipping. Picking can be carried out automatically, routinely or manually. 4. PACK MATERIALS:

The packaging of the goods is done depending on the specified quality of the products. All packed items are assigned to the required means of transportation. 5. POST GOODS ISSUE:
This indicates the legal change in ownership of the products. It reduces inventory and enters cost of goods sold. It ends the shipping process and updates the status of the shipping documents. 6. INVOICE CUSTOMER:

The Billing document is created by copying data from the sales order and/or delivery document. It updates the customer’s credit status. The various methods of billing are Separate Invoice per Delivery, Collective Invoice and Invoice Split. 7. RECEIPT OF CUSTOMER PAYMENT:

The final payment includes Posting payments against Invoices and reconciling differences between payment and invoice.

TYPES OF DATA USED FOR TRANSACTIONS IN DIFFERENT COMPONENTS OF SALES AND DISTRIBUTION PROCESS:

MODULE| COMPONENT| TRANSACTION| DATA|
Sales and Distribution|...
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