SALES FLOW IN SAP

Sales processing is based on the following basic structures:

Every company is structured in a certain way. In order to work with the SAP System your company structure has to be represented in the system. This is done with the help of various organizational structures.In sales and distribution, products are sold or sent to business partners or services are performed for them. Data about the products and services as well as about the business partners is the basis for sales processing. Sales processing with the SAP R/3 System requires that the master data has been stored in the system.

In addition to sales and distribution, other departments of the company such as accounting or materials management access the master data. The material master data is stored in a specific structure in order to allow access from these different views.The processing of business transactions in sales and distribution is based on the master data. In the SAP R/3 System, business transaction are stored in the form of documents. These sales and distribution documents are structured according to certain criteria so that all necessary information in the document is stored in a systematic way.

Organizational Structures

Organizational Structures in Sales and Distribution: The organization in sales and distribution is represented by the elements sales organization, distribution channel and division. The following figure graphically displays these organizational elements.In sales organization 1000, sales and distribution transactions can be carried out through all distribution channels and for all divisions. In sales organization 2000, products of both division 01 and division 02 are only sold through distribution channel 10. In sales organization 3000, only products of division 01 are sold, and only through distribution channel 10.

Sales Organization

The organization in sales and distribution is represented in the system with the help of sales organizations. Every sales organization stands for a selling unit in the legal sense, being responsible, for example, for product liability and other recourse claims made by customers. Regional subdividing of the market can also be carried out with the help of sales organizations. Each business transaction is processed within a sales organization.

Distribution Channel

In order to provide for the market in the best possible way, sales and distribution works with various distribution channels. Typical distribution channels are, for example, wholesale trade, retail trade, industrial customers or direct sales from plant.


Within a sales organization a customer can be supplied through several distribution channels. In addition, the material master data relevant for sales, such as prices, minimum order quantity, minimum quantity to be delivered and delivering plant, can differ for each sales organization and distribution channel.

Division

In the SAP R/3 System you can define a division-specific sales organization. Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing.

Sales Area

A sales area is defined as a combination of sales organization, distribution channel and division. In the above figure, for example, a combination of sales organization 1000, distribution channel 10 and division 01 constitutes a sales area. Via the sales area it is possible to specify which materials can be sold through a distribution channel. Within a sales area you can carry out analyses. For example, the sales within a sales area can be analyzed. All data relevant for sales can be defined per sales area. For example, you can define a customer-specific price agreement for each sales area.


Internal Organization in Business Development and Sales

The organization in Sales is represented by the elements sales office, sales group and salespersons. The following figure displays a sample organization in business development and sales.

Sales Office

Geographical aspects of the organization in business development and sales are defined using the term sales office. A sales office can be considered as a subsidiary. Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a certain sales area, the sales office must be assigned to that area.

Sales Group

The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions.

Sales persons

Individual personnel master records are used to manage data about salespersons. You can assign a sales person to a sales group in the personnel master record.

Organization in Shipping

Independent organizational entities, such as shipping points, are responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to your own warehouses. A delivery is always carried out by one shipping point only. The shipping point depends on the following criteria:

1. Delivering plant
2. Type of shipping (for example, train, truck)
3. Loading equipment necessary
4. Loading Point

Shipping points can be subdivided in loading points. For example, ramp 1, ramp 2 and ramp 3 belong to the shipping point Forwarding depot.The following figure displays a possible organization in shipping.


Organizational Structures in Accounting

A group can be represented in the system using the terms client and company code. Generally, a client represents a group, while a company code represents a company in the sense of an independent accounting unit. Company codes are independent from each other in the legal sense.
The following figure illustrates how the client is subdivided in company codes.

Organizational Structures in Material Management


To monitor the stock of material it is necessary to be able to store in the system the locations at which materials are kept. You can do this using the terms plant and storage location. A plant can either be a place of production or a single storage location, or a combination of closely situated storage locations where stock is kept.Every plant is assigned to a company code. This ensures that stocks and stock values can be managed separately in each company.

Link to Accounting Structure

By assigning sales organizations and plants you create a link between company codes and sales organizations. A plant, though always linked to one company code, can be assigned to different sales organizations. Within a company code several sales organizations can be active. Business transactions can also be carried out between different company codes (for example, during inter-company sales processing).The following figure displays possible assignments of company codes, sales organizations and plants.


Plants 1, 2 and 3 belong to company code 1. Sales organization 1 sells goods from plants 1 and 2, sales organization 2 from plants 2 and 3. Sales organization 1 and 2 can also sell goods from plants 4 or 5, using inter-company sales processing.


Link to Materials Management Structure


The plants allowed for sales are determined for each sales organization according to the distribution channel, so that a sales organization can sell goods from several plants. A plant can be assigned to different sales organizations. All of these sales organizations can sell from that plant.You can differentiate further between the plants belonging to a sales organization from the sales view using the distribution channel. For certain plants within a sales organization, the distribution channel "sales from plant" is allowed, but not for others.


Related Posts

FI CO DEFINATIONS FOR ABAPER
MYSAP ERP advantages and main features
ERP Master data and data warehouse concept
 
Local and Global Planning Sequences in SAP BW