Class Participation

MBA 362L
Enterprise Resource Planning

REPORT
On SAP S&DM Module
Complete Steps &
Explanation

SUBMITTED TO
Prof. Praveen Kumar
SUBMITTED BY:
Debanik Hazra (2327113)

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT CHRIST
(DEEMED TO BE UNIVERSITY), BANGALORE

April, 2024
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Screenshots of Completion:

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Details of Steps:
SAP: SALES AND DISTRIBUTION
SAP Sales and Distribution (SAP SD) is a core functional module in SAP ERP Central
Component (ECC) that allows organizations to store and manage customer- and product-related
data. Organizations use this data to manage all the sales ordering, shipping, billing, and invoicing
of their goods and services.
Working with the other modules, SAP SD enables an order-to-cash cycle business process. SD
handles all the details in the sales and distribution part of the cycle, according to SAP. In a typical
cycle, SD generates a sales quote, and the customer then places a sales order; the goods are
picked from a warehouse or production facility and shipped to the customer, an invoice is sent
with the order, and accounts receivable settle the payment with the customer. Each step in the
process generates transactions in the SD module, which then generates further transactions in the
other ECC modules.

Deep Dive into SAP SD Project:

Here's a breakdown of the potential steps in project on the Sales and Distribution (SD) module within SAP
ERP, along with some details for each:

1. Understanding the SD Module's Functionalities:

 Customer Management: We likely explored how to create and maintain customer master data in the
system. This includes capturing customer information like contact details, creditworthiness, and sales history.
 Order Processing: This might have involved understanding the process of creating sales orders, including
adding items, checking product availability (integration with MM), and configuring pricing rules.
 Shipping and Delivery: We learned about functionalities for creating delivery documents, picking goods
from the warehouse, and managing transportation (potentially linking with external logistics systems).
 Billing and Invoicing: This could involve understanding how the system generates invoices based on
delivery information and pricing agreements. Integration with the Financial Accounting (FI) module for
revenue recognition might be another aspect.

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  Credit Management: Exploring how the SD module assesses customer creditworthiness, sets credit limits,
and manages collection processes could be part of this.

2. Project Focus and Specifics:

 Automation: Project could have focused on automating specific tasks within the SD module. This might
involve using SAP functionalities like user exits, workflows, or Business Application Programming
Interfaces (APIs) to streamline processes like order approvals or discount calculations.
 Pricing Strategies: We have explored how to implement different pricing models within the SD module.
This might involve using features like condition tables, pricing procedures, and discounts to define complex
pricing structures.
 Advanced Features: It is possible in our project delved into functionalities like campaign management for
managing sales promotions or foreign trade for handling international sales and customs processes.

Here is the Breakdown for each step:

Step 1: Display customer master data

Displaying customer master data is the foundation of any transaction within the Sales and Distribution (SD)
module of SAP. It's like having a customer's complete file readily available whenever you interact with
them. Here's why it's so important:

 Accurate Information: When we display customer master & sales representative data, it tells about
the latest and most accurate information about your customer. This includes details like:
o Contact details (phone numbers, email addresses) for communication.
o Shipping addresses for accurate delivery of goods.
o Billing addresses for sending invoices.
o Payment terms to manage credit periods and collection processes.
o Tax information for proper invoice calculations.
o Pricing agreements to ensure correct pricing on sales orders.
o Sales history to understand customer buying patterns and preferences.

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  Efficiency and Streamlined Processes: Having customer data readily available eliminates the need
to manually search for information in different systems or ask for updates from colleagues. This
saves time and reduces errors during order processing, shipping, and invoicing.
 Improved Customer Service: Access to complete customer information allows you to personalize
interactions and provide better service. For example, knowing a customer's preferred contact
method or purchase history can help you tailor communication and recommendations.
 Informed Decision Making: By displaying customer data, we analyze trends and gain insights into
customer behavior. This information can be used for various purposes, such as:
o Identifying potential upsell or cross-sell opportunities.
o Segmenting customers for targeted marketing campaigns.
o Adjusting credit limits based on payment history.
o Negotiating pricing based on customer value.

In short, displaying customer master data is the first step towards accurate, efficient, and customer-centric
sales and distribution processes within SAP SD. It provides a single source of truth for all customer
information, allowing you to interact with them effectively and make informed decisions throughout the
sales cycle.

Basic info in SAP:

● SALES REP – Region wise

● SALES PERSON – Deals with direct customer
A. SALES REP =>
● Manage business partner =>
● Create – Organization Person => BP Role: Client => FLCU01 => FI Customer
● For Accounts => FLCU01
B. SALESPERSON => THE BIKE ZONE (513)
● Address – Street: 2144N Orlando AVE
● City: Orlando
● Code: 32804
● Country: US
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● Region: FL
● Language: EN

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COLLECT BASIC FIELD INFO OF CUSTOMER

Search term 1 – 513

Roles => Create Role
Company Code –
Create
GLOBAL BIKE INC (US00)

FINANCE:

Reconciliation account
Choose trade receivables
Sort key 001 – Posting
date
Payment date => Payment term => 0001 – Payable immediately due to net
Apply
Apply

ADDRESS:

Address
details Click
Show menu
Transportation zone: Region East
Apply

ROLE:

Create

Choose and It generates a number ( 1003068)

FLCU01 (For salesperson)

Sales Area => Create => Sales Organization

UEOO, WH, BI, US EAST, WHOLESALE,

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BICYCLE.

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SALES AREA DETAILS:

Sales Details: US0001 (Pacific Northwest) Currency: USD$

Billing Details => Incoterm => Free on Board (FOB)

Location: Miami Payment terms: 0001

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 Shipping => Delivery Priority: Normal
Delivery Place: Miami(M100)

ACCOUNTING:

Account Assigned group Domestic Revenue

Partial Delivery => Partial delivery per item Pricing
and Stats => Bulk Buyer
Customer Pricing Procedure => Standard C1
Tax classification => 0 in every field
Appl
y
Creat
e
Appl
y
BP category => organization 2

Grouping => internal number assignment (0001)

Step 2: Create a contact person & map with B.P.

Within the Sales and Distribution (SD) module of SAP, creating a contact person and mapping them to the
business process offers several key advantages:

 Improved Communication and Collaboration: Assigning specific contact people within a

customer organization streamlines communication for various aspects of the sales cycle. This
ensures:
o Sales representatives know who to contact for order inquiries, pricing discussions, or product
clarifications.
o Customer service personnel can reach the appropriate person for addressing order issues, delivery
concerns, or billing questions.

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 o Technical support teams can efficiently connect with the relevant technical contact for product
troubleshooting or implementation assistance.
 Enhanced Visibility and Accountability: Mapping contact people to specific processes helps track
interactions and assign ownership. This allows for:
o Clearer understanding of who is responsible for each step of the sales cycle, from order placement to
delivery and after-sales support.
o Improved accountability for timely responses and issue resolution.
o Streamlined communication history by associating actions and communication with designated
contacts.
 Efficient Task Management: Mapping contact people facilitates task assignment and follow-up.
This enables:
o Sales teams to prioritize tasks and track communication with relevant customer contacts.
o Customer service personnel to efficiently manage support tickets and ensure timely resolution.
o Improved customer satisfaction through focused communication and prompt response.

 Personalization and Relationship Building: Identifying key contacts within a customer

organization allows for personalized communication and relationship building. This can lead to:
o Stronger customer relationships built on trust and familiarity with specific contacts.
o Improved customer experience by providing a dedicated point of contact within the customer
organization.
o Increased sales opportunities by fostering positive relationships with key decision-makers.

Basic info in SAP:

CONTACT PERSON

Create contact person

(BP) Manage business partner
Create – Person – BP Role – BUP001 Person Title – Mr. – First Name: DON– Last Name: SG
513 – Country – US – Region – FL – Language – EN -- OK.

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Search term 1 – 513
Create – Business Partner Name: DON SG 513 - Contact Person NO: 1003068

Step 3: Establishing relationship b/w organization and contact person

In the Sales and Distribution (SD) module of SAP, establishing a relationship between the organization
and a contact person goes beyond simply mapping them to a business process. It's about building a
foundation for effective communication and collaboration throughout the customer lifecycle. Here's why
it's important:

1. Building Trust and Rapport: Forming a positive relationship with a contact person fosters trust and
rapport. This can lead to:
Open and honest communication, facilitating clear expectations and problem-solving.
Increased responsiveness and willingness to go the extra mile for each other.
A collaborative environment that fosters successful business relationships.

2. Improved Communication Flow: Establishing a relationship helps ensure clear communication

channels. This means:
Designated points of contact on both sides ensure messages reach the right person.
Understanding communication preferences (email, phone calls, etc.) enables timely and efficient
information exchange.
Building rapport allows for open communication about potential issues or concerns.

3. Enhanced Customer Experience: A strong relationship between your organization and the contact
person translates to a better customer experience. This includes:
Timely responses to inquiries and concerns.
Personalized communication that addresses specific needs and preferences.
Proactive problem-solving to minimize customer disruptions.

4. Streamlined Sales and Order Processing: A well-established relationship facilitates smoother sales
and order processing. This allows for:
Efficient communication regarding order details, pricing negotiations, and delivery schedules.
Faster resolution of any issues that may arise during the process.
Building a knowledge base of the customer's needs for future interactions.

5. Long-Term Business Value: Investing in building relationships with key contacts fosters loyalty
and encourages repeat business. This can lead to:
Increased customer retention and lifetime value.
Potential for upselling and cross-selling opportunities.
Positive word-of-mouth recommendations and referrals.

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Basic info in SAP:

Sales Representative Manager Business Partner

*513 – Select – The Bike Zone Edit
Contacts – Create – Contact person search – 1003068 - Save
Master Data has been created

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Step 4: Customer enquiry

Customer inquiries are the lifeblood of any sales and distribution (SD) process within SAP. They represent
the initial spark that ignites potential business opportunities. Here's why understanding and managing
customer inquiries effectively is so important:

Identifying Customer Needs: Customer inquiries provide valuable insights into what your customers are
looking for. This information can be used to:

Refine your product or service offerings to better meet customer demands.

Develop targeted marketing campaigns that address specific customer needs.
Train your sales team to effectively address common customer inquiries.
Building Relationships and Trust: Responding promptly and professionally to customer inquiries
demonstrates your company's commitment to customer service. This helps build trust and fosters positive
relationships, which can lead to:

Increased customer satisfaction and loyalty.

Repeat business and potential for upselling or cross-selling opportunities.

Optimizing Sales Opportunities: Customer inquiries can be a starting point for initiating a sales
conversation. By understanding the customer's specific needs and concerns, you can:

Tailor product or service recommendations to their unique requirements.

Provide accurate pricing information and address any pricing concerns.
Improving Sales Efficiency: Capturing and analyzing customer inquiries within SAP SD allows to
identify trends and patterns. This valuable data can be used to:

Streamline the sales process by anticipating common customer questions.

Develop FAQs (Frequently Asked Questions) to address recurring inquiries.
Improve sales training materials to better equip sales representatives for customer interactions.

Basic info in SAP:

Salesperson

Manage Sales Enquiry

Create Enquiry
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 Inquiry Type – IN - UE00 Distribution Channel: WH Division: BI - Continue
Customer Enquiry Form – Sold to party – 1003068

Customer Reference: 513 | Customer Reference date: 00/00/0000 Valid from:

00/00/0000 | Valid to: 00/00/0000
Requested delivery date: 00/00/0000

All items – Material – DXTR1513 | PRTR1513

– Order quantity – 5 | 2

Select both items – Click display credentials Order probability – 70

General sales data | Order probability – 7- Inquiry no: 10000072

Step 5: Creation of Sales Quotation

Understanding the SAP SD Sales Process: A Step-by-Step Breakdown

The Sales and Distribution (SD) module in SAP software underpins entire sales operation. Here's a
simplified breakdown of the key steps involved:

1. Customer Inquiry: It all starts with a customer reaching out, expressing interest or asking
questions. Capturing this initial spark in SAP SD allows you to understand their needs.
2. Building Relationships: By establishing a connection with a designated contact person and
responding effectively to inquiries, you build trust and foster a positive customer experience.
3. Creating a Sales Quotation: This crucial step transforms a customer's interest into a formal offer.
Within SAP SD, you present product details, pricing, and terms in a documented proposal, laying
the groundwork for negotiation and securing their interest.
4. Negotiation and Order Processing: The customer might have questions or request adjustments.
SAP SD facilitates communication and helps manage the process efficiently.
5. Delivery and Invoicing: Once an agreement is reached, SAP SD helps manage order fulfillment,
delivery logistics, and accurate invoice generation.

Basic info in SAP:

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 Sales Rep – Manage sales quotation – Create quotation
Quotation type – QT
Create with reference – Inquiry – (10000072) Customer reference number – 513
Customer reference date: Today’s date – Valid from Today’s date All items: select DXTR1513 |
Click item conditions
Select- k004(Material)

Go to the amount in front of materials: Enter 50 RA00 - % discount from Net: Click activate
Sales quotation no- 20000023

Step 6: Creation of Sales Order No.

The sales order number in SAP SD acts as the official green light for fulfilling a customer's order. It
signifies a confirmed agreement, triggering actions within the system:

 Inventory reservation: Secures the requested items for the customer, preventing overselling.
 Production planning (if needed): Initiates production processes (for in-house items) to meet the order's
requirements.
 Delivery scheduling: Sets the stage for coordinating pick-up, shipment, or delivery of the ordered goods.

In essence, the sales order number is the official go-ahead for fulfilling the customer's request, marking a
crucial step from proposal to order confirmation within SAP SD.

Basic info in SAP:

SALES REP – Manage Sales Order Create sales order-

VA01 Order type: OR | Create with reference

Quotation- 20000023 | Customer reference- 513 | Customer reference date | Req delivery date.
Standard Order- 41
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 Step 7: Checking Stocks.

Checking stock levels before creating a sales order in SAP SD is critical for two key reasons:

1. Preventing Overcommitment: By verifying available stock, we avoid accepting orders for items
you can't fulfill immediately. This maintains customer satisfaction and avoids order fulfillment
delays.
2. Inventory Management: Knowing stock levels helps us to make informed decisions about
production planning, purchase orders, and potential backorders. This ensures optimal inventory
management and prevents stockouts.

In short, checking stock in SAP SD helps us avoid overselling and make informed decisions, leading to a
smoother sales process and efficient inventory management.

Basic info in SAP:

Sales representative: Stock multiple material Search

PRTR1513 Plant M100

Storage location: FG00, Finished good GO

Step 8: Tracking sales order

Tracking Sales Orders: The Eyes and Ears of Your SAP SD Process (Under 200 words)

In the dynamic world of Sales and Distribution (SD), tracking sales orders within SAP is akin to having
eyes and ears on your entire sales operation. It allows you to monitor progress, identify potential issues, and
ensure smooth order fulfillment. Here's why it's so important:

 Real-Time Visibility: SAP SD provides a centralized platform to track the status of each sales
order. You can see if it's awaiting credit approval, picking items in the warehouse, or already

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 shipped to the customer. This real-time visibility allows for proactive problem-solving and informed
decision-making.
 Improved Customer Communication: By tracking sales orders, we can keep your customers
informed about the progress of their purchases. This fosters trust and transparency, allowing us to
set realistic expectations and address any concerns promptly.
 Early Identification of Issues: Potential delays, stock discrepancies, or delivery exceptions can be
identified early on through order tracking. This allows for proactive intervention, minimizing
disruptions and ensuring timely order fulfillment.
 Performance Analysis and Optimization: Tracking sales orders provides valuable data for
analyzing sales process performance. We can identify bottlenecks, measure fulfillment times, and
optimize procedures for improved efficiency.

In essence, tracking sales orders in SAP SD is the key to maintaining control, fostering customer
satisfaction, and optimizing our overall sales and distribution operation.

Basic info in SAP:

Sales Representative Track sales order - *513

Go to items – Go to process flow – Standard Order – More links – Display sales order – VA03 - ok
All items - Select DXTR1513 & PRTR 1513 – Click display availability
Scope of check – Select DATR – Item condition – Check for discounts.

Step 9: Delivery process

Warehouse Staff: The Engine of Outbound Deliveries in SAP SD (Under 200 words)

Warehouse employees play a critical role in the SAP SD process by creating outbound deliveries. This
seemingly simple step is the engine that drives order fulfillment and customer satisfaction.

 Inventory Accuracy: Creating an outbound delivery in SAP SD triggers a physical pick list,
ensuring warehouse personnel pick the correct items and quantities. This maintains inventory
accuracy and avoids order fulfillment errors.
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  Efficient Picking and Packing: The system guides warehouse staff through the picking process,
optimizing efficiency and minimizing picking times. This ensures timely order fulfillment and
reduces warehouse operational costs.
 Delivery Coordination: Creating an outbound delivery initiates communication with logistics
providers or triggers internal transportation processes within SAP SD. This ensures the picked items
are delivered to the customer efficiently and on schedule.
 Order Completion: Once the outbound delivery is created and confirmed, the sales order status
reflects "shipped" in SAP SD. This signifies a critical milestone within the sales cycle and allows
for accurate invoicing.

Basic info in SAP:

Warehouse employees Create outbound delivery

Ship to party – 1003068 - Shipping point: M100(Miami) Planned creation date – Select (Sales
order, Due for delivery)

Step 10: Tracking Sales Order

Tracking sales orders in SAP SD is like having a live dashboard for entire sales operation. It offers crucial
benefits:

 Real-time Visibility: we can see the exact status of each order – awaiting credit approval, picking in the
warehouse, or already shipped. This allows for proactive problem-solving and informed decisions.
 Improved Customer Service: Keep customers informed about their purchases, fostering trust and managing
expectations.
 Early Issue Identification: Spot potential delays, stock discrepancies, or delivery exceptions early on,
allowing for quick intervention.
 Performance Optimization: Analyze order tracking data to identify bottlenecks, measure fulfillment times,
and improve efficiency.

Basic info in SAP:

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 Sales rep – Track sales order - *513

Step 11: Pick material & Ship

The combined step of picking materials and shipping them in SAP SD lies at the heart of order fulfillment.
It's the bridge between confirming an order and getting it into the customer's hands.

 Inventory Accuracy & Order Fulfillment: Picking ensures the correct items and quantities are retrieved,
preventing errors and delays.
 Efficient Warehousing: SAP SD guides picking to optimize time and resources within the warehouse.
 Timely Delivery & Customer Satisfaction: Efficient picking and shipping ensure orders reach customers
on time, fostering satisfaction.
 Order Completion & Revenue Cycle: Picking and shipping mark a critical step, transitioning the order to
"shipped" status and paving the way for invoicing.

In essence, picking and shipping are the physical actions that turn sales orders into delivered goods, directly
impacting customer satisfaction, revenue generation, and the success of our SAP SD operation.

Basic info in SAP:

Warehouse employee Manage outbound delivery

Shipping point - SP Miami(M100) Ship to party – 1003068
Overall status
All open deliveries – GO
Select 80000036 – Click pick
Delivery items – Picking quantity – 5 for DATR & 2 for PRTR DATR – Storage location | PRTR1513 –
Storage location
FG00 – Apply – Save

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Step 12: Stock Check

Stock – Material no – DXTR1513 – Plant: M100 – Storage location: PG00 – GO

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 Step 13: Create a Billing Doc

Creating a billing document in SAP SD is the final, crucial step that completes the sales cycle. It signifies
the moment we record the sale and request payment from the customer.

 Revenue Recognition & Financial Reporting: The billing document triggers the creation of a
financial record for the sale, ensuring accurate revenue recognition and reporting.
 Payment Initiation: It serves as the official invoice sent to the customer, clearly outlining the items
purchased, their pricing, and any applicable taxes. This initiates the payment cycle.
 Order Completion & Closure: Creating a billing document marks the final step in fulfilling a sales
order within SAP SD. It signifies a completed transaction and allows for closing the order in the
system.

Basic info in SAP:

AR Account: Create billing doc: *513 – GO Billing due list item: Select
80000036 Create billing document
Process flow – Pricing data – SAVE Invoice 9000024

Step 14: DISPLAY BILLING AND PAST CUSTOMER INVOICE

In the Sales and Distribution (SD) module of SAP, "DISPLAY BILLING AND PAST CUSTOMER
INVOICE" likely refers to a functionality that allows to view and access information related to customer
invoices. Here's a breakdown of its potential uses:

1. Displaying Billing Information:

 We can access details of a specific invoice by entering the invoice number. This might show
information like:
o Customer details (name, address)
o Invoice date and due date
o List of items invoiced with quantities and pricing

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 o Total amount due
o Payment terms and any outstanding balance
2. Accessing Past Customer Invoices:
 You can search and retrieve past invoices for a specific customer by entering their customer number
or name. This allows you to:
o Review past transactions with a particular customer.
o Track payment history and identify any overdue invoices.
o Analyse customer buying patterns and trends.

Basic info in SAP:

AR Account- Manage billing doc - *513 – GO Select Invoice in billing doc

Display Post

Step 15: Post Incoming Payments

Required Information:
 Document Date: Enter the current date for the payment record.
 Company Code: Select the relevant company code associated with the payment.
 Payment Method: Specify the payment method used by the customer (cash, check, bank transfer,
etc.).
 Customer Account: Enter the customer's account number for whom the payment is received.
 Payment Currency: Select the currency in which the payment was made.
 Cash/Bank Account: Specify the company bank account where the payment will be posted.
 Payment Amount: Enter the total amount received from the customer.
Open Item Selection:
 We can use the "Process Open Items" button to display a list of outstanding invoices for the selected
customer.
 This allows you to:
o Choose specific invoices to be cleared with the incoming payment.

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 o Allocate the payment amount to different invoices if the payment covers multiple invoices
partially.
Posting the Payment:
 Once we've selected the invoices and assigned the payment amount, we can post the incoming
payment.
 This will:
o Clear the selected invoices as paid.
o Update the customer's account balance.
o Generate a corresponding journal entry reflecting the cash or bank account being credited
and the customer account being debited.
Additional Points:
 We might have options to:
o Simulate the journal entry before posting to see the accounting impact.
o Assign a reference number to the payment for future tracking.
Integration with Other Modules:
 Posting incoming payments in SAP SD often interacts with other modules within SAP:
o Financial Accounting (FI): The payment is reflected in the relevant FI accounts.
o Accounts Receivable (AR): Customer account balances are updated accordingly.

Basic info in SAP:

Company Code – US00 Posting

date – 00/00/000 Journal Entry Data
– 00/00/000 Period – Current
Month (03) Journal Entry Type -DZ
G/L Account - Bank 1- 1810000
Amount – 20092.50 USD
Fill Customer – 1003068
Click – propose item – see balance

Click clear – balance – 0(means transaction done) Click Post

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Journal Entry – 1400000026
Done

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