Enterprise Structure in SD

CLIENT -A client is a self-contained technical unit. A client can be considered to be a
synonym for group.

Company Code

• A complete Accounting unit can be representing as the smallest organizational unit of external
accounting.

• At Company Code level we create

Balance sheet required by law
Profit and Loss statement.

• Each company code represents an independent accounting unit. Several company codes can use
the same chart of account.


Assignment

1. Company code to company
2. Company code to Credit control area
3. Company code to Controlling area
4. Company code to financial management area

Sales Organization

• A sales organization is uniquely assigned to a company code
• The highest-level of organizational unit in SD is Sales Organization.
•  Responsible for Distributing goods and services, Negociation sales conditions, Product liability
•  Sales organization is also used to take for example a regional, national or international.
•  A sales organization assigned to a company code.

Distribution Channel

• DC is assigned to a sales organization. The assignment is not unique.
• Distribution Channel represents strategies to distribute goods and services to customer.
• DC is assigned to a sales organization. The assignment is not unique.
• Can share Customer, Material and Condition master data by maintaining a reference/common DC.

Division

• A division is assigned to a sales organization. The assignment is not unique.
• A Division is used to group material and services. A material can have only one Division.
• We can make Customer- specific agreements for each Division, for example regarding partial deliveries or pricing within Division. (In CMIR).
•  You can share Customer and Condition master data by maintaining a reference/common Division.
•  A Division is assigned to a sales organization. The assignment is not unique.
•  You can use cross division to enter multiple materials with various divisions in a sales order.
• You can choose division specific sales, it is controlled by customizing for sales document type.

SAP SD Basic Accounting

As a SAP SD professional, you must be able to explain the basic of accounts and GL accounts in customizing.

Business process High level Overview

let’s imagine a simple business process:

• Company sells goods and create a Sales Order for 2,200 dollars
  (Selling price is 2,000 dollars plus 200 dollars sales tax)
• Create delivery document that starts the delivery process
• Process Goods Issue (GI) when goods leave the warehouse
• Billing customer (Billing document)
• Accounts Receivable or Clearing (get money from customer)

The material is valued at 1,000 dollars (the price in material master > accounting view)

The yellow blocks are those transactions that will create FI documents (accounting entries). 

GL account postings

Lets look at the postings to GL account (using T accounts)

The GL accounts in diagram is to show typical numbers. GL account determination of the Goods Issue transaction is set up in Automatic Account determination (in Materials Management). Revenue Account determination is done in SD.

Organization Units and their assignment

• The highest-level organizational unit in SD module is Sales Organization.
• A sales area is a combination of a sales organization, DC and division.
• A sales organization is uniquely assigned to a company code.
• DC is assigned to a sales organization. The assignment is not unique.
• A division is assigned to a sales organization. The assignment is not unique.
• A plant is assigned to a combination of sales organization and distribution channel.
• A plant is assigned to a company code.
• A material can have only one division.
• By defining and assigning Sales Org, DC and Div a sales area is not automatically formed. You have to set up a sales area.
• A sales office is assigned to a sales area.
• A sales group is assigned to a sales office.

SAP System Landscape

SAP System Landscape

System landscape basically is the set-up or arrangement of SAP servers

System landscape consists of the 

1.     Development Server

2.     Quality Assurance Server

3.      Production Server-PROD

R/3 stands for real time three tier architecture

1.     Presentation Server -SAP GUI.-Presentation Layer-This layer is the interface between the SAP System and its users,The presentation layer sends the user’s input to the application server, and receives data for display from It.

2.     Application Layer-Where SAP is Installed-The software components of the application layer consist of one or more ABAP application servers and a message server

3.     Database Layer-Where Database is installed.The database layer consists of a central database system which in turn is made up of the database management system (DBMS)

Process Flow SD

Process Flow SD

Route determination

Route Determination by following parameter 

SD interview questions

1. How Shipping point determines?
2. How Route Determination happens?
3. What is the Rule of Account Determination ?
4. How Plant determines in Sales order?
5. How Item category determines ?
6. What is Sales Area?
7. What are the main organizational units in Sales and distribution  Module ?
8. Can we assign a sales organization to severel company code?
9. What are effects of Post goods issue ?
10. What are the effects of Billing document ?
11. What are the prerequisite for order combination .
12. What are the pre requisite for collective invoice ?
13. For a customer master which data tabs works for sales and distribution ?
14. What are the views required for SD regarding Material master ?
15. Can we mentain several minimum order quantity in Material master ?
16. Can we maintain several unit of measure for material master ?
17. Which master data we use to maintain Complete delivery agreement ?
18. Can we share customer master , material and condition master across distribution channel?
19. Which master data we can share across division ?
20. Shipping condition taken from which master data ?
21. Why we use backward and forward scheduleing ?
22. Can we change actual GI Date ?
23. How many types of backward order processing can happen ?
24. What is LIS and what is SIS ?
25. How we do mass change?
26. Can we do fast change in a document ?
27. How pricing determination happens?

VAPMA Table usages

Often we come across issue with Material pricing, etc

Ideal way of finding Sales documents with specific Material is Table – VAPMA

Similarly is for VLPMA for deliveries and VRPMA for Billing docs.

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