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SAP R/3 Sales and Distribution Module

©2000 RWD Technologies, Inc. All rights reserved.

Slide 1 of 23

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SAP R/3 Sales and Distribution Module Slide 2 of 23

Learning Objectives

  Name the three key processes associated with Sales and Distribution (SD) and Customer Order 

Management  Identify the key SAP elements that support the SD

processes

©2000 RWD Technologies, Inc. All rights reserved.

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SAP R/3 Sales and Distribution Module Slide 3 of 23

SD and SAP

Access the SD Module

through the Logistics

path

SD Sales

andDistribution

PPProductionPlanning

PSProjectSystem

ISIndustrySolutions

FIFinance

MMMaterialsManagement

QMQuality

Management

WFWorkflow

COControlling

PM PlantMaintenance

HRHuman

Resources

SMService

Management

R/3R/3 BasicBasic SSysysttemem MMoodudulleses

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SAP R/3 Sales and Distribution Module Slide 4 of 23

SD Module

The SD application module

helps to optimize all the tasks and activities carried

out in sales, shipping, and billing

©2000 RWD Technologies, Inc. All rights reserved.

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SAP R/3 Sales and Distribution Module Slide 5 of 23

Overview of SD Processes

SALES

Take PRODUCTIONPlace

SHIPPING BILLING

Ship

Customer 

Orders

ACTIVITY CONTROL

Product

In

Inventory

to

Customer 

Invoice

Customer 

Ship toDistribution

Point

Check

Availability

and Promise

Delivery Date

ProduceAdjusted

Forecast

Available

to

Promise

Create

Delivery

Note

Receive

Payment

MMASTASTEER PR PRROODDUCUCTTIIOONN SSCHCHEEDULEDULE

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SAP R/3 Sales and Distribution Module Slide 6 of 23

SD Supports an Integrated Enterprise

OrdOrdeer r  ShipShip BBillill

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SAP R/3 Sales and Distribution Module Slide 7 of 23

Interfaces in SD

  SD interfaces with:  Materials Management (MM)  Financial Accounting (FI) Controlling (CO)  Interfaces with other departments facilitate

information exchange

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SAP R/3 Sales and Distribution Module Slide 8 of 23

Inquiries and Quotations

  Provide information the customer can use to decide

whether or not to buy products or services from a company  Provide order information to the customer 

including:  Prices   Arrival dates  Terms and conditions

  Quotations are legally binding  Inquiries are not legally binding

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SAP R/3 Sales and Distribution Module Slide 9 of 23

Sales Orders

  Finalize agreement with the customer to buy certain

materials:   At a specified price  Under certain terms and conditions  Contain the same information as quotations or 

inquiries

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SAP R/3 Sales and Distribution Module Slide 10 of 23

Key Intersections within Sales Order Entry

  Create quotations, inquiries, and outline

agreements (Pre-Sales activities)  Check available-to-promise (ATP) status

  Check customer’s credit  Create sales orders  Update master production schedule  Perform Order Management

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SAP R/3 Sales and Distribution Module Slide 11 of 23

Order Types

  Customer orders are created using different order 

type codes  Each order type can have a different impact on: Shipping  Billing  Outputs (printed or faxed documents)  Returns are a special type of order discussed within

the Order Management process

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SAP R/3 Sales and Distribution Module Slide 12 of 23

Outline Agreements

  Agreements between customer and supplier   Basic types of outline agreements:  Contracts

  Quantity  Value  Scheduling agreements  Customers usually receive discounts if they meet

the outline agreement requirements

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SAP R/3 Sales and Distribution Module Slide 13 of 23

Shipping

  Review orders due for delivery  Create and maintain delivery notes  Monitor product availability

  Pick goods from storage  Pack goods for shipment  Ship goods to customer  Monitor shipping work list

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SAP R/3 Sales and Distribution Module Slide 14 of 23

Billing

  Create invoices to bill a customer   Process billing adjustments  Monitor rebates

  Issue pro forma invoices  Process customer payments

(Accounts Receivable)

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SAP R/3 Sales and Distribution Module Slide 15 of 23

BusBusiinneessssProceProcesssesses

Key SAP Elements

100 MMaastester r DataData

ReReccordsords

01

01 02

OrganizationalStructureStructure

SAP DocuDocummeentsnts

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SAP R/3 Sales and Distribution Module Slide 16 of 23

SD Organizational Structure

Company Code

100 SSaalleess OOr r ggaanniizazattiionon

01

01 02

DistributionDistribution CChhannelannel

DivisionDivision

= Sales Area

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SAP R/3 Sales and Distribution Module Slide 17 of 23

Master Data Records

  Material  Customer or Credit  Pricing

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   D  o  c  u  m  e

  n   t

   D  o  c  u  m  e

  n   t   F   l  o  w

   F   l  o  w

SAP R/3 Sales and Distribution Module Slide 18 of 23

SAP Documents

Outline Agreements SALES

Order 

Request for 

Credit/Debit

Delivery Note

SHIPPING

InvoiceCredit/Debit

Memo

BILLING

Note: Solid lines indicate that prior document must be referenced.

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   D  o  c  u  m  e

  n   t

   D  o  c  u  m  e

  n   t   F   l  o  w

   F   l  o  w

SAP R/3 Sales and Distribution Module Slide 19 of 23

Document Flow

The document flow

represents the life cycle

or audit trail of a document in SAP.

All documents created in

the SD module update

document flow.

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SAP R/3 Sales and Distribution Module Slide 20 of 23

“Upstream” Dependencies and Inputs

  Material master data  Customer master data  Pricing condition records

MMaaster ster 

ReReccordsords

OOrder rder  SShhiipp BillBill

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SAP R/3 Sales and Distribution Module Slide 21 of 23

“Downstream” Effects and Outputs

  Accounts Receivable (AR)  General Ledger (GL)  Finished goods inventory

  Cost of goods sold  Sales revenueAR

GL

OOrder rder  SShhiipp BillBill FinanceFinance

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SAP R/3 Sales and Distribution Module Slide 22 of 23

Learning Objectives Review

  Describe the key processes associated with SD and

Customer Order Management.  Order entry, shipping and billing

  Identify and describe the key SAP elements thatsupport the SD processes.  Organizational structure, master data and SAP

documents

Quiz

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SAP R/3 Sales and Distribution Module Slide 23 of 23

This slide intentionally left blank

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