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Introduction on S&D , Pricing and Conditions.Introduction on S&D , Pricing and Conditions.

ByBy -- Senthilvel Anbalahan.S (21/04/2K3)Senthilvel Anbalahan.S (21/04/2K3)Availability check & Material Determination.Availability check & Material Determination.

ByBy Syed Sayeed Ahmed (23/04/2k3)Syed Sayeed Ahmed (23/04/2k3)

Credit Management.Credit Management.ByBy Ranjith Kumar.A (24/04/2K3)Ranjith Kumar.A (24/04/2K3)

Output Determination & Text Processing.Output Determination & Text Processing.

ByBy Ganesh.N.K (24/04/2K3)Ganesh.N.K (24/04/2K3)Account Information (Billing).Account Information (Billing).ByBy Ahmed Basha.V.M (25/04/2K3) Ahmed Basha.V.M (25/04/2K3)

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SALES ORGANIZATIONSALES ORGANIZATIONDefinition:Definition: Sales organization consists of personsSales organization consists of persons

working together for the effective sales ofworking together for the effective sales ofproducts manufactured by the firm.products manufactured by the firm.

Sales and DistributionSales and Distribution

Introduction and Implement in SAPIntroduction and Implement in SAP

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PRODUCTSPRODUCTS

TYPES:TYPES:1.Industrial Products:1.Industrial Products: These are the productsThese are the productswhich are used in the process of manufacturingwhich are used in the process of manufacturingother products.other products.E.g. Raw materials, Machines.E.g. Raw materials, Machines.

2.Consumer Products:2.Consumer Products: These are the products forThese are the products fordirect consumption by ultimate consumers.direct consumption by ultimate consumers.

E.g. Car, T.V , Radio.E.g. Car, T.V , Radio.3.Agricultural Products:3.Agricultural Products: These are the productsThese are the products

produces out of the cultivation.produces out of the cultivation.E.g. Rice, wheatE.g. Rice, wheat

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Channels of DistributionChannels of Distribution

DEFINITION:DEFINITION: The process through which the products areThe process through which the products aretransferred from the producers to ultimate users.transferred from the producers to ultimate users.

TYPES:TYPES:1.Direct Method.1.Direct Method.

2.Indirect Method.2.Indirect Method.

Distribution ChannelsDistribution Channels

Direct MethodDirect Method Indirect MethodIndirect Method

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Direct DistributionDirect Distribution

Products are transferred directly to consumers by theProducts are transferred directly to consumers by themanufactures.manufactures.

ProducersProducers ProducersProducers ProducersProducers

ConsumersConsumers ConsumersConsumers ConsumersConsumers ConsumersConsumers

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Indirect DistributionIndirect Distribution

A Manufacturer sells products to consumersA Manufacturer sells products to consumersthrough the intermediary persons.through the intermediary persons.

ProducersProducers ProducersProducers ProducersProducers

ConsumersConsumers ConsumersConsumers ConsumersConsumers ConsumersConsumers

IntermediaryIntermediary

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Intermediary or MiddlemanIntermediary or Middleman

Middleman act as the connecting link between the manufacturesMiddleman act as the connecting link between the manufacturesand consumers.and consumers.

Types:Types:

IntermediaryIntermediary

Merchant MiddlemanMerchant MiddlemanFunctional MiddlemanFunctional Middleman

WholesalerWholesaler RetailerRetailerAgentAgent

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Functional MiddlemanFunctional Middleman

AgentAgent

An agent is the person who represents theAn agent is the person who represents thebuyer or the seller in negotiating purchases orbuyer or the seller in negotiating purchases orsales without having physical control oversales without having physical control overproducts.products.

The functionality of an agent is to bring theThe functionality of an agent is to bring thebuyer and seller together.buyer and seller together.

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Merchant MiddlemanMerchant Middleman

They are the persons buy and sell on their own accountThey are the persons buy and sell on their own accountand risk.and risk.

Types:Types:

1.Wholesaler:1.Wholesaler:

Wholesaler is the person dealing with all theWholesaler is the person dealing with all theactivities involved in selling products or services toactivities involved in selling products or services tothose who buy for resale. The word Wholesaler meansthose who buy for resale. The word Wholesaler meansto sell the product in relatively large quantities.to sell the product in relatively large quantities.Types:Types:

1. Local Wholesalers.1. Local Wholesalers.2. State Wholesalers.2. State Wholesalers.3. National Wholesalers.3. National Wholesalers.

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Merchant MiddlemanMerchant Middleman

2.Retailer2.Retailer

Retailer is the person who sells varieties of products inRetailer is the person who sells varieties of products insmall quantities to the final consumer.small quantities to the final consumer.

The word retailer is derived from a French wordThe word retailer is derived from a French word retailenretailenwhich means to cut again.which means to cut again.Types:Types:1. Small1. Small--Scale Retailers.Scale Retailers.2. Large2. Large--Scale Retailers.Scale Retailers.

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Distribution ChannelsDistribution Channels

PRODUCERSPRODUCERS PRODUCERSPRODUCERS

CONSUMERSCONSUMERS CONSUMERSCONSUMERSCONSUMERSCONSUMERS

RetailerRetailer

RetailerRetailer

RetailerRetailer

RetailerRetailer

WholesalerWholesaler Agent Agent Agent Agent

wholesalerwholesaler

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Sales And Distribution in SAPSales And Distribution in SAPBusiness partnersBusiness partnersBusiness Partners are the persons having contact with the company. They areBusiness Partners are the persons having contact with the company. They areclassified into,classified into,1. Customers.1. Customers.2. vendors. And2. vendors. And3. Personnel.3. Personnel.Customers:Customers:1.Higher1.Higher--Level Customers.Level Customers.2.Dependant Customers.2.Dependant Customers.

Partner Functions Dealing with Customer:Partner Functions Dealing with Customer:1.Sold1.Sold--toto--Party:Party:Person or company that places an order for goods or services.Person or company that places an order for goods or services.2.Ship2.Ship--toto--party:party:Person or company that receives the goods.Person or company that receives the goods.3.Bill3.Bill--toto--party:party:Person or company that receives the invoice for a delivery or service.Person or company that receives the invoice for a delivery or service.

4.Payer:4.Payer:Person or company that settles the bill.Person or company that settles the bill.

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Basic Functions of S&D in SAPBasic Functions of S&D in SAP

1.Pricing and Conditions.1.Pricing and Conditions.2.Sales,Availablity check & Material2.Sales,Availablity check & MaterialDetermination.Determination.3.Credit Management.3.Credit Management.4.Output Determination & Text Processing.4.Output Determination & Text Processing.5. Account Information (Billing).5. Account Information (Billing).

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Pricing and ConditionsPricing and Conditions

PricingPricing is carried out in order to determine prices, discounts andis carried out in order to determine prices, discounts andsurcharges (based on conditions) for a business transaction.surcharges (based on conditions) for a business transaction.These conditions can be altered manually.These conditions can be altered manually.

Prices, discounts and surcharges are stored inPrices, discounts and surcharges are stored in conditionconditionrecords.records.

We can define as manyWe can define as many condition recordscondition records as we want for theas we want for thedifferent pricing elements for any validity period.different pricing elements for any validity period.

AA condition tablecondition table defines the combination of fields that identifiesdefines the combination of fields that identifiesan individual condition record.an individual condition record.

Transaction Code For Creating Condition Records: VK31Transaction Code For Creating Condition Records: VK31

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Condition RecordsCondition Records

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Condition RecordsCondition Records

We can limit a pricing agreement to a certainWe can limit a pricing agreement to a certain periodperiod bybyspecifying a validity period.specifying a validity period.

The values in a condition record (price, surcharge, discount) canThe values in a condition record (price, surcharge, discount) canbe maintained according to abe maintained according to a scalescale..

we can specify anwe can specify an upper and lower limitupper and lower limitfor each condition record.for each condition record.Manual changes to pricing elements can only be made withinManual changes to pricing elements can only be made withinthese limits.these limits.

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Condition Type ExampleCondition Type Example

TheThe condition typecondition type determines the category of a condition. Thedetermines the category of a condition. The calculationcalculationtype and the scale basistype and the scale basis can be controlled for each condition type.can be controlled for each condition type.Transaction Code for Condition Type :Transaction Code for Condition Type :VK11VK11

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Table StructureTable Structure

Tables:Tables:1.KNOV1.KNOV Procedure Table.Procedure Table.2.KNOH2.KNOH Condition Header (Master Table).Condition Header (Master Table).

3.KNOP3.KNOP Condition Items (Child Table).Condition Items (Child Table).

KNOVKNOV

KNOHKNOH

KNOPKNOP Price/discount ListPrice/discount List

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Pricing ProcedurePricing Procedure