SAP University Alliances Version 2 01 Authors Bret

SAP University Alliances Version 2. 01 Authors Bret Wagner Stefan Weidner Hans-Jürgen Scheruhn Product SAP ERP 6. 0 Eh. P 4 Global Bike Inc. Level Beginner Focus Cross-functional integration Sales and Distribution (SD) In addition to the standard Sales and Distribution slides, this presentation includes links to business process models provided by a team at Hochschule Harz in Germany led by Prof. Dr. Hans. Jürgen Scheruhn. These business models represent the processes in the case study 100% and thus facilitate an integrated view on data, functions and persons responsible. Each link in the presentation is indicated by the symbol of all links can be found on the second last page. . A list © SAP AG

SAP ERP Course Overview § Introduction to SAP § Navigation § Introduction to GBI § Sales & Distribution § Materials Management § Production Planning § Financial Accounting § Controlling © SAP AG Page 4 -2

SAP ERP Functionality § Sales Support § Sales § Shipping and Transportation § Billing § Credit Management § Foreign Trade © SAP AG Page 4 -3

SAP ERP Unit Overview § SD Organizational Structure § SD Master Data § SD Processes - Order-to-Cash Process © SAP AG Page 4 -4

SAP ERP § Client - § An organizational entity which grants and monitors a credit limit for customers. It can include one or more company codes Sales Organization - § Smallest org unit for which you can maintain a legal set of books Credit Control Area - § An independent environment in the system Company Code - § SD Organizational Structure An organizational unit responsible for the sale of certain products or services. The responsibility of a sales organization may include legal liability for products and customer claims Distribution Channel - © SAP AG The way in which products or services reach the customer Typical examples of distribution channels are wholesale, retail, or direct sales Page 4 -5

SAP ERP SD Organizational Structure § Division - A way of grouping materials, products, or services § Sales Area - Combination of Sales Organization, Distribution Channel and Division - Determines conditions (i. e. pricing) for sales activities § Plant (here: Delivering Plant) - Plant from which the goods should be delivered to the customer § Other SD organization units: © SAP AG Shipping Point Loading Point Sales Office Sales Group Sales Person Page 4 -6

SAP ERP GBI 2. 0 Structure for Sales and Distribution Client Global Bike Inc. US West San Diego © SAP AG Global Bike Germany Gmb. H US East Dallas Miami Germany North Hamburg Company Code Germany South Sales Organization Heidelberg Sales Office Page 4 -7

GBI 2. 0 Enterprise Structure in SAP ERP (Sales) n. B icy Distribution Channel Wholesale WH n. A cce sso cle s. B I ries AS SAP ERP Div isio Distribution Channel Internet IN US West CA West DE North GB North AU North UW 00 CW 00 DN 00 GN 00 AN 00 US East CA East DE South GB South AU South UE 00 CE 00 DS 00 GS 00 AS 00 CC GB 00 CC AU 00 CC US 00 CC CA 00 CC DE 00 Sales Organisation Company Code Credit Control Area (global) GL 00 Client GBI © SAP AG Page 4 -8

SAP ERP SD Master Data Customer Master Material Master Sales Condition © SAP AG Page 4 -9

SAP ERP § Customer Master - - § Customer Master Data Contains all of the information necessary for processing orders, deliveries, invoices and customer payment Every customer MUST have a master record Created by Sales Area - © SAP AG Sales Organization Distribution Channel Division Page 4 -10

SAP ERP § Customer Master Data The customer master information is divided into 3 areas: - © SAP AG General Data Company Code Data Sales Area Data Page 4 -11

SAP ERP Customer Master General Information relevant for the entire organization: Client XXX Company Code specific information: Company Code US 00 Acc. Mgmt Payment Bank Company Code DE 00 © SAP AG Name Address Communication Sales Area specific information: Sales Office Currency Sales Org. UW 00 Sales Org. DS 00 Page 4 -12

SAP ERP § Material Master Data Material Master - - Contains all the information a company needs to manage about a material It is used by most components within the SAP system • • • - © SAP AG Sales and Distribution Materials Management Production Plant Maintenance Accounting/Controlling Quality Management Material master data is stored in functional segments called Views Page 4 -13

SAP ERP Material Master Views Sales Data Basic Data Purchasing Data Mat. Plan. Data Material Master Forecasting Data Storage Data Controlling Data Quality Data Accounting Data © SAP AG Page 4 -14

SAP ERP Material Master General Information relevant for the entire organization: Client XXX Sales specific information: Sales Org. UW 00 Storage Location specific information: Delivering Plant Loading Grp Sales Org. UE 00 © SAP AG Name Weight Unit of Measure Stock Qty Storage Loc. FG 00 Storage Loc. TG 00 Page 4 -15

SAP ERP § Condition master data includes: - § Prices Surcharges Discounts Freights Taxes You can define the condition master to be dependent on various data: - § Condition Master Data (Pricing) Material specific Customer specific Conditions can be dependent on any document field © SAP AG Page 4 -16

SAP ERP § Output is information that is sent to the customer using various media, such as: - § Output E-mail Mail EDI Fax XML Output examples: - © SAP AG Quotation Confirmation Invoice Page 4 -17

SAP ERP Sales Order Process Pre-sales Activities Sales Order Entry Check Availability Pick Materials Receipt of Customer Payment Invoice Customer © SAP AG Pack Materials Post Goods Issue Page 4 -18

SAP ERP Pre-Sales Activities (CRM Light) § Sales Support is a component of SD that assists in the sales, distribution, and marketing of a companies products and services to its customers. It contains the following functionality: - Creating and tracking customer contacts and communications (sales activity) • • Phone call records On-site meeting Letters Campaign communication - Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes § Pre-sales documents need to be managed within the presales activities: Inquiries and Quotations. These documents help identify possible sales related activity and determine sales probability. © SAP AG Page 4 -19

SAP ERP Pre-Sales Activities (CRM Light) § The ultimate goal of all presales activities is to equip the sales technician with all the information necessary to negotiate and complete the potential sale. § Information needed: - Past sales activity Past communication Contact information General Company info Credit limits and usage Current backorders § 360º view of your customer © SAP AG Page 4 -20

SAP ERP Inquiry § An inquiry is a customer’s request to a company for information or quotation in respect to their products or services without obligation to purchase. - How much will it cost - Material/Service availability - May contain specific quantities and dates § The inquiry is maintained in the system and a quotation is created to address questions for the potential customer. © SAP AG Page 4 -21

SAP ERP § Quotation The quotation presents the customer with a legally binding offer to deliver specific products or a selection of a certain amount of products in a specified timeframe at a pre-defined price. © SAP AG Page 4 -22

SAP ERP Sales Order § Sales order processing can originate from a variety of documents and activities - Customer contacts us for order: phone, internet, email - Existing Contract - Quotations § The electronic document that is created should contain the following basic information: © SAP AG Customer Information Material/service and quantity Pricing (conditions) Specific delivery dates and quantities Shipping information Billing Information Page 4 -23

SAP ERP § Sales Order The sales document is made up of three primary areas: - Header • Data relevant for the entire sales order: Ex: customer data, total cost of the order - Line Item(s) • Information about the specific product: Ex: material and quantity, cost of an individual line - Schedule Line(s) • Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries © SAP AG Page 4 -24

SAP ERP Sales Order § The sales order contains all of the information needed to process your customers request, the following information is determined for each sales order: - © SAP AG Delivering Schedule Shipping point and route determination Availability Check Transfer of requirements to MRP Pricing Credit limit check Page 4 -25

SAP ERP Delivery Scheduling § When an order is created you must enter a requested delivery date for the order or each line item. § The system will then determine a delivery timeline, this will be used when determining our material availability, or ATP (Availability to Promise) date. § The system will determine this date using forward and backward scheduling rules you have defined. © SAP AG Page 4 -26

SAP ERP Order Date 1 st Backward Scheduling Material Availability 2 nd Pick & Pack Time (2 days) © SAP AG Transp. Sched. 3 rd Transp. Sched. Time (1 day) Loading 4 th Loading Time (1 day) Goods Issue 5 th Requested Delv. Date 6 th Transit Time (2 days) Page 4 -27

SAP ERP Order Date 1 st Transp. Material Availability Sched. Pick & Pack Time (2 days) © SAP AG Forward Scheduling 2 nd 3 rd Loading Goods Issue 4 th 5 th Transp. Sched. Time (1 day) Loading Time (1 day) Requested New Delv. Date 6 th 7 th Transit Time (2 days) Page 4 -28

SAP ERP Shipping & Route Determination § During the creation of the sales order the system must determine the shipping point from which the material will be shipped and the route the material will take to get from your warehouse to your customers location. § A shipping point is determined for each line item within the order. § The route determination will is used to define the transit time of the material that we used in scheduling. © SAP AG Page 4 -29

SAP ERP § Availability Check - § Determines the material availability date Considers all inward and outward inventory movements Proposes 3 methods of delivery - § Availability Check One-time delivery Complete delivery Delayed proposal Rules are created by YOU © SAP AG Page 4 -30

SAP ERP Pricing § The system displays pricing information for all sales documents on the pricing screens at both the header and the line item level. - Header pricing is valid for the whole order it is the cumulative of all line items within the order - Line item pricing is for each specific material. § The system will automatically search for price, discounts, surcharges, calculate taxes and freight. You have the ability to manually manipulate the pricing at both the header and line item level within the sales order by entering a condition type and amount. - Taxes and freight can be set-up so we can’t manually enter © SAP AG Page 4 -31

SAP ERP Credit Check § Allows your company to manage its credit exposure and risk for each customer by specifying credit limits. § During the sales order process the system will alert the sales rep about the customers credit situation that arises, if necessary the system can be configured to block orders and deliveries. © SAP AG Page 4 -32

SAP ERP Shipping & Transportation § The shipping process begins when you create the delivery document for the sales order. This document controls, supports, and monitors numerous sub-processes for shipping processing: - Picking - Packing - Post Goods Issue § Integrated with the Material Management (MM) and Finance (FI) modules © SAP AG Page 4 -33

SAP ERP Shipping Sales Order 1 Sales Order 4 Sales Order 2 Delivery 8… 13 Sales Order 5 Delivery 8… 16 Delivery 8… 14 Delivery 8… 12 Order Combination © SAP AG Delivery 8… 15 Partial Delivery Complete Delivery Page 4 -34

SAP ERP Delivery Creation § Checks order and materials to determine if a delivery is possible — delivery block (hold), completeness § Confirms availability § Confirms export/foreign trade requirements § Determines total weight & volume © SAP AG Page 4 -35

SAP ERP Delivery Creation § Generates packing proposal § Calculates weight and volume § Checks scheduling § Considers partial deliveries § Updates route assignment § Assigns picking location § Updates sales order § Determines batches § Quality check (if needed) § Updates sales order © SAP AG Page 4 -36

SAP ERP Delivery Document § The Delivery Document initiates the delivery process and is the control mechanism for this process - Picking Packing Loading Posting Goods Issue § Changes to delivery are allowable - products, quantities © SAP AG Page 4 -37

SAP ERP Picking § Quantities based on delivery note § Assigned date when picking should begin § Automated storage location assignment § Supports serial number/lot number tracking and batch management § Integrated with Warehouse Management (WM) © SAP AG Page 4 -38

SAP ERP Loading and Packing § Identifies which packaging is to be used for specified products (customer preference and UCC-128 considerations) § Identifies and updates accounts associated with returnable packaging § Tracks the packed product by container § Insures weight/volume restrictions are enforced § All packed items are assigned to the required means of transportation © SAP AG Page 4 -39

SAP ERP Goods issue § Event that indicates the legal change in ownership of the products § Reduces inventory and enters Cost of Goods Sold § Automatically updates the General Ledger (G/L) accounts § Ends the shipping process and updates the status of the shipping documents © SAP AG Page 4 -40

SAP ERP Billing § The billing document is created by coping data from the sales order and/or delivery document. - Order-based billing - Delivery-based billing § The billing process is used to generate the customer invoice. § It will update the customer’s credit status. © SAP AG Page 4 -41

SAP ERP Billing Documents § The billing document will automatically create a debit posting to your customer sub-ledger account and credit your revenue account. § It is at this point that the sales process is passed over to Financial Accounting to await payment. © SAP AG Page 4 -42

SAP ERP Billing Methods Delivery based Invoicing Delivery 8… 20 Invoice 9… 45 Delivery 8… 21 Invoice 9… 46 Order 6 Delivery 8… 33 Collective Invoicing Order 9 Delivery 8… 34 Order 14 Split Invoicing © SAP AG Invoice 9… 68 Delivery 8… 56 Invoice 9… 91 Order 32 Delivery 8… 86 Invoice 9… 92 Page 4 -43

SAP ERP Payment § Payment is the final step in the sales order process, this step is managed by the Financial Accounting department. § Final payment includes: - Posting payments against invoices. - Reconciling differences between payment and invoice. § Payment will create a posting clearing the liability in the A/R account and increases your bank account. © SAP AG Page 4 -44

SAP ERP § Document Flow The document flow and order status feature allows you to find the status of an order at any point in time. The SAP updates the order status every time a change is made to any document created in the customer order management cycle (Order-to-Cash). © SAP AG Page 4 -45

SAP ERP Sales Order Process Debugging § “Never again did I learn so much in such a short time, because twenty participants made mistakes for me! You cannot make so many mistakes all alone” SAP Co-founder Klaus Tschira, on his experiences teaching COBOL to clients at IBM. © SAP AG Page 4 -46

SAP ERP § Document Flow - § Sales Order Process Debugging Gives Order Process Status List of Sales Orders (VA 05) - © SAP AG Tool to Find Order Need student’s user id/data set number Page 4 -47

SAP ERP Overview of ARIS models (SD) [slide number] [slide title] [model name assigned] [level of abstraction (1 -4)] 4 -5 SD Organizational Structure : “GBI System Organizational Model” MM, SD, FI(1 -3) 4 -6 SD Organizational Structure: “GBI System Organizational Model” MM, SD, FI(1 -3) 4 -7 Global Bike Inc. and Global Bike Germany Gmb. H : „GBI Org Chart US/DE „(1 -3) 4 -8 SD Organizational Structure: “GBI System Organizational Model” MM, SD, FI(1 -3) 4 -9 SD Master Data : Data Model (DM) “GBI Data Model” MM, SD, FI (3) 4 -10 Display Customer : General Data : Mask Diagram (MD) “Create Customer Address Data / XD 01”(4) Levels of abstraction (1 -4) (1) Core level (2) Overview level (3) Detailed level (4) Document level 4 -11 General Data : Mask Diagram “Create Customer Address Data / XD 01”(4) 4 -11 Company Code Data : MD “Create Customer: Company Code Data / XD 01”(4) 4 -11 Sales Area Data : MD “Create Customer Sales Area Data / XD 01”(4) 4 -12 Customer Master : Event Process Chain (e. EPC) “Create New Customer“(3) 4 -13 Components Sales and Distribution, Materials Management, Accounting/Controlling and MD “Create Trading Goods: Basic Data 1 / MMH 1”(4) 4 -14 Material Master Views : e. EPC “Create Material Master for Trading Goods”(3) 4 -14 Basic Data and 2 more views: MD “Create Trading Goods: Basic Data 1 / MMH 1”(4) 4 -15 Material Master : e. EPC “Create Material Master for Trading Goods”(3) 4 -18 Sales Order Process : Value Added Chain Diagram “GBI_SD”(2) 4 -18 7 e. EPCs like Sales Order Entry(3) or Check Availability (3) and DM “Integration SD-FI”(3) 4 -21 Inquiry : e. EPC “Create Customer Inquiry“(3) 4 -22 Quotation : e. EPC “Create Customer Quotation“(3) 4 -23 Sales Order : e. EPC “Create Sales Order Referencing a Quotation”(3) 4 -24 sales document : Attribut Allocation Diagram “Sales Order”(4) 4 -27 Backward Scheduling : Attribut Allocation Diagram “Backward Scheduling“(4) 4 -30 Availability Check: e. EPC “Check Stock Status”(3) 4 -33 Shipping & Transportation e. EPC” Start Delivery Process“(3) 4 -34 Shipping DM “Integration SD-FI”(3) 4 -38 Picking : e. EPC” Pick Materials on Delivery Note”(3) 4 -40 Goods issue : e. EPC” Post Goods Issue“(3) 4 -41 Billing : e. EPC” Create Invoice for Customer“(3) 4 -42 Financial Accounting : Information Carirer Diagram “FI-SD Integration Point”(3) 4 -43 Billing Methods DM “Integration SD-FI”(3) 4 -44 Payment: e. EPC “Post Receipt of Customer Payment”(3) 4 -45 Document Flow : Information Carirer Diagram “GBI Document Flow MM, SD, FI” (3) © SAP AG All assigned models and its objects are linked to each other. This enables the model user to horizontally navigate (via Object Occurrences) within one level of abstraction and to vertically navigate (via Object Hierarchy) between the 4 levels of abstraction. Page 4 -48

SAP ERP Information Models Covering 4 Levels of IT Integration Execution in SAP ERP Presentation Processes Take GBI 2. 0 User Rolls and interact with GBI 2. 0 Processes via SAP GUI : Execute GBI 2. 0 Processes : Order of entire case study Single case study processes Functions Execute GBI 2. 0 Transaction : Data GBI 2. 0 Data In- / Output : © SAP AG All content of case studies at a glance Entire SAP ERP document flow Description SAP ERP mask structure All SAP ERP master & transaction data All SAP ERP organizational units Model Presentation in ARIS Organizational View (Org. units / Positions / Rolls/ User) : Level of Abstraction (LA) 1 to 3 Process View Value added Chain (VAC) : LA 1 and 2 Event driven process chain : LA 3 Function View Funktion Tree : Level of Abstr. 1 to 3 Data View Information carrier diagram : LA 3 Mask diagram : Level of Abstraction 4 Entity Relationsship Diagram : LA 3 Org. Chart : Level of Abstraction 1 - 3 Page 4 -49