Basic Organisational Structure In SD

Company Code

Company Code is smallest organizational unit of external accounting which forms the top of the sales and distribution chain

Sales Organisation

Sales Organisation is responsible for the sale and distribution of goods and services which represents the selling unit as a legal entity and is responsible for product guarantees and other rights to recourse. It is highest in the sales and distribution chain

Distributional Channel

Distributional Channel represents the channel through which sellable materials or services reach customers

Division

Division is a collection of Product groups. A material belongs to exactly one division only.

Sales Area

Sales Area is the set-up that combines sales organisation, distributional channel and division

Sales Office

Sales Office is the geographical aspects of the organization in business development and sales

Sales Group

Sales Group is the staff of a Sales office

Plant

Plant is the place where material movements take place. (manufacturing or storage)

Shipping Point

Shipping Point is responsible for scheduling and processing in-bound & out-bound deliveries

Customer Buying Process

Customer Buying Process

The process starts with the creation of Sales order, after discussion with the customer, on agreed price and delivery date. Invoice gets generated, after confirmation of the Order quantity and price. Allocation of the material is done as per the required delivery date and customer priority. Deliveries Note is created and transportation arranged, either by Company or the customer. Goods are issued from the warehouse to the customer. Goods receipted by the customer. Payment received by the Company and processed. Any price difference against the customer can be sorted out by debit or credit memo document.

High Level Overview

Sales Order created

Delivery note Created

Transfer Oder Created & Confirm

Shipment started & finished

Post good issue

Invoice Generated

Return Sales Order

Sales Returns Business Process Overview 

Sales returns processing manages merchandise that the customer has returned due to complaints. As soon as the customer has returned the merchandise, we have  to create Sales returns order with reference to the Customer Invoice.

Return Delivery Note is created from the Sales Order followed by post the goods receipt. The goods receipt posting is updated in the appropriate stock (for example, blocked stock returns, goods receipt blocked stock, or quality inspection stock) for a defined storage location.

The system considers the quantities of blocked returns stocks in the returns stock of a plant. Blocked stock returns are neither valuated nor available for unrestricted use.

The credit memo is created immediately, without having to wait for the results of the

analysis. The system generates a credit memo for the customer for the deposit value

of the empties as soon as the allegedly defective merchandise is returned. The system does not create credit memos for the full product until the analysis results are available and the subsequent settlement has taken place.

High Level Overview

RETURN ODER

RETURN DELIVERY

CREDIT MEMO