By

Debasish Ghosh (DGH)

Prepared By: Debasish Ghosh Date: 07-11-2013 1

 AGENDA
 ERP
 Why An ERP?
 SAP Introduction
 What's the benefit of SAP?
 SAP GUI Configuration
 SAP Modules
 Transaction Code (TCODE)
 SAP R/3 Organizational Elements
 Sales & Distribution Process
 Master Data
 Creating sales order, delivery and billing
 Transaction Reports

Prepared By: Debasish Ghosh Date: 07-11-2013 2

 ERP
What are Enterprise Resource Planning (ERP)
Systems?
 Incredibly large, extensive software packages used to
manage a firm’s business processes.
 Standard software packages that must be configured to
meet the needs of a company
 Database programs with the following functions:
 Input
 Storage/Retrieval
 Manipulation
 Output

Prepared By: Debasish Ghosh Date: 07-11-2013 3

WHY AN ERP?

 FOR OVER ALL CONTROL OF AN ORGANIZATION

 TO HAVE BETTER FINANCIAL CONTROL
 FOR BETTER INVENTORY CONTROL
 BETTER WAY OF OPERATING
 FOR BETTER REPORTING SYSTEM
 MAN POWER ACCESSMENT
 OPTIMUM UTILIZATION OF RESOURCES

( MEN,MACHINES AND MATERIALS)

Prepared By: Debasish Ghosh Date: 07-11-2013 4
 SAP INTRODUCTION
 SAP ( ESSAP) A PRODUCT OF ERP
 SYSTEMS,APPLICATIONS & PRODUCTS IN DATA
PROCESSING
 SAP,AG Founded in 1972 in Germany by few Ex-
IBM Employees

Prepared By: Debasish Ghosh Date: 07-11-2013 5

What's the benefit of SAP?

SAP is used in all business management tasks of a

company, including paying invoices, entering orders,
managing product and customer information, and
controlling finances.
SAP manages these business management tasks in
modules that all work together in one system by
sharing information.

Prepared By: Debasish Ghosh Date: 07-11-2013 6

 SAP GUI Configuration
First, you need to tell the SAP Gui which system you
want to log into:

If you don’t
have
any systems
defined,
click on New
Item

Prepared By: Debasish Ghosh Date: 07-11-2013 7

 SAP MODULES

FUNCTIONAL TECHNICAL NEW DIMENSIONAL

FI-CO/MM/PP/SD ABAP/BASIS CRM/EWM/EP/SRM etc

HR/PM/QM

Prepared By: Debasish Ghosh Date: 07-11-2013 8

Transaction Code (TCODE)
SAP Transaction code is a short cut key attached
to a screen. Instead of using SAP easy access menu
we can also navigate to a particular screen in SAP by
entering the transaction code (T-code for short) in
the command field of the standard toolbar.

Prepared By: Debasish Ghosh Date: 07-11-2013 9

SAP R/3 Organizational Elements
Client
Company Code
Sales Order Type
Sales Organization
Distribution Channel
Sales Division
Sales Area
Plant
Storage Location
Shipping Point
Prepared By: Debasish Ghosh Date: 07-11-2013 10
 Clients in SAP R/3
 The highest level in an SAP R/3 instance
 A self-contained unit with a separate set of master records
and its own set of configuration tables
 An instance can have more than one client
 Development Client
 Quality/Testing Client
 Production Client

Prepared By: Debasish Ghosh Date: 07-11-2013 11

Clients in SAP R/3
The Client is  like a ‘Customer’. We can say that each customer maps to one
client. Within one SAP instance, a number of Clients can be created. No need
to install separate software’s for each and every customer. It provides
isolation, one client cannot see the data of other client.

As depicted above 100 and 200 clients exist

under one roof. We can create a number of
clients in SAP Application (from 000 to 999)

Prepared By: Debasish Ghosh Date: 07-11-2013 12

Company Code
Represents an independent legal accounting unit
Balanced set of books, as required by law, are
prepared at this level
A client may have more than one company code
We have 1100, 1200 & 1300

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Sales Order Type
Sales order/document type process different
documents in different ways based on certain
conditions. We ZDOM, ZSTK, ZINC, ZFOC, ZTRD
etc.

Prepared By: Debasish Ghosh Date: 07-11-2013 14

Sales Organization
 A sales organization is responsible for
negotiating sales conditions and
distributing goods and services.
 It represents the top organizational
level to which you sum sales figures.
There must be at least one sales
organization defined
 A sales organization is assigned to
only one company code.
 More than one sales organization can
be assigned to a company code.
 In RSPD we have sales org 1200 & 1201
under company code 1200, 1300 under
company code 1300 and 1100 under
company code 1100
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Distribution Channel
 A Distribution Channel is the
way sales materials reach the
customer. Sales
 A distribution channel can be Organization
assigned (serve) to more than
one sales organization.
Distribution Channel
 Distribution Channels allow for
different conditions such as Wholesale Retail Direct
minimum order quantities and
pricing.
 We have so many distribution
channel export, domestic,
institution, dealer, distributor, in
house etc.

Prepared By: Debasish Ghosh Date: 07-11-2013 16

Sales Division
 Divisions are used to present
product lines. Sales
Organization
 At least one division must be
defined.
 Divisions can be assigned to more
than one sales organization.
 Divisions restrict access to
materials, so care should be Divisions
exercised in defining divisions.
 Examples Product Product Product
 Motorcycle Line 1 Line 2 Line 3
 Accessories
We have MF, LM, Hybrid,
Spark, VRLA AGM etc.

Prepared By: Debasish Ghosh Date: 07-11-2013 17

 Sales Area
A Sales Area is a valid
combination of Sales
organization, Distribution
Channel and Division.
Customer Master Data
and Sales Documents are
linked to sales areas.
Simple organizational
structures are usually
preferred to complex
ones.

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Plant

A physical or logical site where value is added

A plant can be a
Production facility
 Warehouse
Distribution vehicle
We have plant 1101, 1201, 1203, 1205, 1301, 1302, 1303

Prepared By: Debasish Ghosh Date: 07-11-2013 19

Storage Location
A subdivision of a
plant where
inventory is
managed.
We have 1200 -
Semi Finished,
1400-Assembly,
1500-Finished
Goods

Prepared By: Debasish Ghosh Date: 07-11-2013 20

Shipping Point
 A shipping point is a fixed location
that carries out shipping activities.
It may be a loading dock, a mail
room or a shipping department.
Each delivery is processed by only
one shipping point
 One plant can have multiple
shipping points.
 A shipping point can serve
multiple plants.
 Lead times for determining
delivery dates are associated with
shipping points.
 We have shipping point 1201-RBL -
Gazipur 01, 1301-RAL-Gazipur
Manufacturing etc.

Prepared By: Debasish Ghosh Date: 07-11-2013 21

Sales & Distribution Process
1. Engage in pre-sales activities (Create quotations and send to
customers).
2. Create sales orders
3. Schedule & deliver
4. Bill customer (by invoice)
5. Receive payment from customer

Prepared By: Debasish Ghosh Date: 07-11-2013 22

Pre-Sales Activities
 There are two categories of presales activity: Sales Support and Pre-
sales Documents.
 Sales Support allows for tracking of customer contacts by including
sales visits, phone calls, letters and direct mailings. Mailing lists can
be generated based on specific customer characteristics. Basically an
Integrated CRM system.
 Pre-sales contacts include inquiries and quotes.
 Inquiries document customer requests for information (“how
much is . . .”, “is the product in stock . . .”)
 Quotes are binding documents to a customer offering a specific
quantity of material at a specific price if accepted within a specific
period.
 Both Inquiries and Quotes can be used as a starting point to create
a customer order.

Prepared By: Debasish Ghosh Date: 07-11-2013 23

Sales Order Processing
Customers place orders with a customer service
representative who create a document* with information
on:
Customer
Material Ordered - material and quantity
Pricing conditions for each item
Schedule lines - delivery dates and quantities
Delivery Information
Billing information
Information is pulled from master data on customers and
materials to minimize data entry errors.

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Inventory Sourcing
Inventory Sourcing determines:
If a product is available (availability check). Through
MMBE Report.
How the product will be supplied:
 From stock on hand.

 From production or purchase orders that should be

available.
 From make-to-order production.

 Shipped from an external supplier.

 Shipped from another plant or warehouse.

Prepared By: Debasish Ghosh Date: 07-11-2013 25

Delivery

Delivery activities include:

Creating delivery documents
Creating transfer orders for material picking
Provide packing information (if required)
Goods issue (updating accounting and inventory data)

Prepared By: Debasish Ghosh Date: 07-11-2013 26

Billing
A Billing Document is created by copying information for
the sales order and delivery document into the billing
document which is used to create the invoice.
Creating a Billing Document will automatically debit the
customer’s accounts receivable account and credits the
revenue account. Postings may also be made to other
accounts.

Prepared By: Debasish Ghosh Date: 07-11-2013 27

Payment
Payment is the final step in the customer order
management cycle.
Final payment includes:
Posting payments against invoices.
Reconciling differences, if necessary.

The Cycle may not always go as planned (material not in

stock, defective material returned for credit, etc.). SAP
has procedures to deal with these possibilities.

Prepared By: Debasish Ghosh Date: 07-11-2013 28

Order Management Process
Pre-Sales Contact

Inquiry
Scheduling
Contract Quotation agreement

Materials Management
Sales Order
Sales Information System

Production Planning
Order
Processing

Inventory Sourcing

Delivery/ Delivery Goods issue

Transportation
Transfer Order Shipment

Billing Invoice

Payment/
Material Stock
Accounting Accounts Receivable
Account

Prepared By: Debasish Ghosh Date: 07-11-2013 29

Master Data
Customer Pricing
Master Master
Material
Master

 Master Data is centrally stored (shared across application modules) and

is processed to eliminate data redundancy.
 When creating business transactions (like a sales order) the R/3 system
copies information from master data.
 Three kinds of master data are critical to sales order processing:
 Customer - Shared with FI/CO
 Material - Shared with MM and PP
 General Ledger
 Pricing

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Customer Master
Contains all the customer related data necessary for
processing orders, deliveries, invoices and customer
payments
Customer Master contains all relevant data regarding
business partners
Sold-to party
Ship-to party
Bill-to party
Payer

Prepared By: Debasish Ghosh Date: 07-11-2013 31

Customer Master Data

 Customer Master Data

is created by Sales Area
 Sales Organization
 Distribution Channel
 Division

Prepared By: Debasish Ghosh Date: 07-11-2013 32

Customer Master Data

 The customer master

information is divided
into 3 areas:
 General Data
 Company Code Data
 Sales Area Data

Prepared By: Debasish Ghosh Date: 07-11-2013 33

Material Master
Contains all data required to define and manage a specific
item of material
Integrates data from
Inventory Control (MM)
Manufacturing (PP)
Sales and Distribution (SD)
Accounting (FI and CO)
And other departments
Each user has a unique view

Prepared By: Debasish Ghosh Date: 07-11-2013 34

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
 Sales and Distribution
 Materials Management
 Production
 Plant Maintenance
 Accounting/Controlling
 Quality Management
 Material master data is stored in
functional segments called
Views
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 Material Master Views
Sales Data

Basic Data Purchasing Data

Mat. Plan. Data

Forecasting Data
Material Master

Storage Data

Controlling Data Quality Data

Accounting Data

Prepared By: Debasish Ghosh Date: 07-11-2013 36

General Ledger
A book of accounts and their respective balances
The primary information record for Financial
Accounting (FI)
Contains the information required to prepare
financial statements
The General Ledger provides a complete record of
all acceptable business transactions

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Pricing
Pricing is carried out automatically based on
predefined prices, discounts, and surcharges
Highly customizable within SAP R/3

Prepared By: Debasish Ghosh Date: 07-11-2013 38

Creating an Order
 When a sales order is created
in R/3, data is copied from:
 Customer Master
 Material Master
 Condition Records for
Pricing
 Tables in Configuration for
shipping point and route.
 Data can also be copied from
an inquiry or quote.

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Creating an 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
 Information about the specific
product: Ex: material and quantity,
cost of an individual line
 Schedule Lines
 Uniquely belongs to a Line Item,
contains delivery quantities and
dates for partial deliveries

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 Creating an Order
 The sales order contains all of the information needed
to process your customers request, the following
information is determined for each sales order:
 Delivering Schedule
 Shipping point and route determination
 Availability Check
 Transfer of requirements to MRP
 Pricing
 Credit limit check

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Sales Order: Availability Check
 Availability Check
 Determines the material
availability date
 Considers all inward and
outward inventory
movements

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Condition Master (Pricing)
 Condition master data includes:
 Prices
 Surcharges
 Discounts
 Freights
 Taxes

 You can define the condition master

to be dependent on various data:
 Material specific
 Customer specific

 Conditions can be dependent on any

document field
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 Output
 Output is information that
is sent to the customer
using various media, such
as:
 E-mail
 Mail
 EDI
 Fax
 XML
 Output examples:
 Quotation
 Confirmation
 Invoice

Prepared By: Debasish Ghosh Date: 07-11-2013 44

 SD Process: 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-
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 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
 Tcode used here are:
VL01n------Create, VL02n----Change, Vl03n----Display
VL09-------PGI Reverse
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Delivery
Complete
Sales Order Delivery
Delivery
Partial Delivery
Delivery
Sales Order Delivery
Delivery

Order Sales Order

Delivery
Combination Sales Order

A delivery can be created for each sales order.

Sales orders may split into multiple deliveries (availability).
A delivery may combine a number of sales orders for efficiency.
Combined sales orders must have something in common like shipping point,
delivery processing date, ship-to party or route.

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 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.
 Tcode used here are:
VF01------Create, VF02----Change, VF03----Display

Prepared By: Debasish Ghosh Date: 07-11-2013 48

 Billing
Invoice Sales Order Delivery Invoice
Split
Invoice

Separate Sales Order Invoice

Delivery
Invoice
per delivery Delivery Invoice

Collective Sales Order Delivery

Invoice
Delivery Invoice
Sales Order Delivery

Invoice splits can be used to bill for different items like

materials and services.
Collective invoices can be used to consolidate deliveries
onto one invoice to minimize paperwork.
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 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 decreasing your bank account.

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Transaction Reports
MMBE-------Stock Overview
VA05---------List of Sales Orders
ZSRR---------Sales Report
ZCUSTDTLS---Customer Details
ZMATSTATUS------Production and stock status of
Material

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THANK YOU

Prepared By: Debasish Ghosh Date: 07-11-2013 52