to be presentation -sap sales and distribution
Post on 12-Sep-2014
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SD TO BE PresentationTRANSCRIPT
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SAP R/3 implementation
At Indian Rayon
Sales & Distribution Module
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Contents
• Organization Structure• Master Data• Process Scenarios• Outputs• Critical Reports• Change Management Points• Gaps
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Organization Structure
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Organization Structure - Caustic
Domestic Export
Chemical
Caustic
South North
Sales Area
RayonChemical
(The combination of Sales Organization, Distribution Channel & division is called Sales Area)
Sales Offices are assigned to theSales Area
West 1 West 2 East
Sales Office
Sales Group
Karnatak
T.N
A.P
Kerala
Sales Organization
Distribution Channel
Division
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Organization Structure Description
Sales Org Chemical
Distribution Channel Domestic, Export
Division Caustic, Rayon Chemical
Organization Structure - Caustic
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Sales Office
North South East West 2 West 1
Sales Group
Delhi Karnataka W.B Maharashtra Baroda
Punjab A.P Jarkhand M.P Surat
Rajasthan Kerala Assam Goa Vapi
Haryana T.N Bihar Gujarath Kutch
U.P Saurashtra
Uttaranchal Ahmedabad
Himachal Pradesh
J & K
Organization Structure - Caustic
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Master Data
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Master Data
Different Masters to be maintained for Sales Processing are:
Customer Master
Material Master
Pricing Master
Credit Master
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Every customer master is managed under an account group. Account group has control functions during master record maintenance which include:
Customer number range and type of assignment (either internal or external). Alphanumeric numbers are also allowed for externally assigned numbers.
Field selection Mandatory or Optional fields We can use an indicator to specify that the customer
master records of an account group are one-time accounts (collective accounts for miscellaneous customers).
Master Data - Customer Master
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Customer Master Data
Account Groups:
The following set of account groups will be created for Caustic Business Units.
• Dealer
• Export Customer
• Direct, Institution, captive, government etc.
• One-time customer
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The different pricing conditions are –
Prices: NOS NOM Delivered Price Basic Price
Discounts: Cash Discount Credit Note Discount Quantity Discount Rate Difference Bulk Discount Distance Discount Commission
Master Data – Pricing Master
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• The pricing can be automatic or manual• Lower limit and upper limit can be predefined for a
particular pricing condition. (Ex: NOM, NOS etc)• The Pricing can be statistical value. This will be used for
reporting.• Taxes are calculated based on the predefined rules.
Pricing
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Master Data - Credit Master
The Credit Master is maintained for the credit control area. The credit master is maintained for the payer in SAP.
The credit master will have – Credit limit of the Customer / Dealer Risk category Credit exposure etc.
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Process Scenario
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The different sales processes are:
Standard Sales -- Sales to direct, dealer, ancillary, Captive Sale, institution etc
Export Sales Deemed ExportFOC SalesThird Party SaleReturnable Packaging
Process Scenarios – Caustic
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Process Scenarios – Standard Sales Process
Inquiry
Quotation
Sales Order
Delivery
Credit LimitExceeded
Invoice
Blocked forDelivery
YesNo
Quotation is created with Or withoutreference to Inquiry
Sales Order is created with Or withoutreference to Quotation or Contract
Contract
Credit Limit is Checked at the salesorder level.
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The Process covers sales to –
Direct DealerCaptive InstitutionAncillaryGroup SalesScrap etc
Process Scenarios – Standard Sales Process
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Inquiry
ConsignmentFill-up
Pro-formaInvoice
Quotation
Delivery
ConsignmentIssue
Delivery
Invoice
ConsignmentPick-up
ConsignmentReturn
Goods movement from Factory to Port
The ownership of the goods remain with IRIL
Credit LimitExceeded
Blocked forDelivery
YesNo
The ownership of the goods are transferred tocustomer after PGI
Return fromPort
Return fromCustomer
Pro-forma Invoice is created with Or withoutreference to Quotation
Goods movement from Port to Customer (BOL date)
Quotation is created with Or without reference toInvoice
Process Scenarios – Export Sales Process
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The process is given below:
• Create an ARE-3 and when it is ready post it. Print the ARE-3 and enclose a copy with the delivery.
• The shipping department sends the goods to the customer, together with the excise invoice and the ARE-3.
• When the customer receives the goods, he checks whether the excise invoice and the ARE-3 match the goods.
• If customer finds that there are fewer goods than stated on the ARE-3, he enters the shortfall in the ARE-3.
Process Scenarios – Deemed Export
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• Customer then fills out Part 2 of the ARE-3 (Certificate of Warehousing by the Consignee) and sends it back to the IRIL.
• ARE-3 is updated in the R/3 System.
• Customer fills out the various certification dates in the ARE-3 (for example, the date when the ARE-3 arrived back at your company).
• If there is a shortfall in the quantity of goods, then shortfall is entered. Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from basic excise duty.
• The excise duty has to be paid on the shortfall, plus interest, backdated to the date when you removed the goods from your premises. The concerned authority specifies which excise registers to pay the excise duty from
Process Scenarios – Deemed Export
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Process Scenarios – FOC Sales Process
The process is same as standard sales procedure. The difference is:
The pricing structure.
On basic price 100% discount is given.
No credit control
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Process Scenarios – Third Party Sales
Sales Order
Invoice
PurchaseRequisition
P.O withVendor
Vendor Invoice
Inquiry
Quotation
Quantity according to vendorinvoice
Purchase requisition is generated forthe order quantity
Purchase order with the vendor
Vendor sends the Invoice to IRIL
IRIL sends the Invoice tocustomer
Contract
Sale order is created based on thecustomer P.O
Vendor supplies the goods directly tocustomer
Goods Reciept
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Used in case of Chlorine and Hydrogen gas where the product is supplied in cylinders.
Returnable packaging consists of materials that are stored at the customer location but which remain the property of IRIL viz., cylinders. The customer is only required to pay IRIL for the returnable packaging if he does not return the cylinders.
Stocks of returnable packaging must be –
Managed separately from the rest of company’s stock so that the exact stock stored at the customer location is
available. Managed separately for each customer.
Process Scenarios – Returnable Packaging
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There are three main transactions for processing Returnable Packaging.
Creating Returnable Packaging Shipments
Creating Returnable Packaging Pick-Up
Creating Returnable Packaging Issue
Process Scenarios – Returnable Packaging
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Transportation
Shipment Document:
The Shipment Document is created once the transportation planning is finalized for the deliveries. Shipment Document can be used to:
Combine deliveriesSpecify different shipment stages – For example: Veraval
to Mumbai port & Mumbai Port to Destination. So this has 2 stages in the transportation process.
Shipment routeTransporter detailsMonitoring of different activities viz., Planning, Check-in,
Loading, shipment start
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Shipment Cost Document:
Shipment cost document is created w.r.t shipment document. This will help in calculating the freight and transferring the cost to FI.
Open Purchase order for the transporter can be created so that the service entry sheet will be created against this P.O. The service entry sheet is created automatically in the background as soon as the costs are transferred to FI.
Pricing can be done based on Service Provider (transporter)Departure & destination point etc.
Transportation
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Pricing (Freight Calculation)Pricing Procedure for freight calculationThe pricing can be done automatically if the prices are
maintained in advance or the prices can be entered manually at the time of shipment cost document creation.
Invoice Verification:Once the service entry sheet (Against P.O) is created the
Invoice verification and settlement can be carried out. In case of any loss of goods or damage of goods the
debit note will be raised on the transporter.
Transportation
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Outputs
The different outputs are:
• Delivery Note • Filling Memo• Invoice/Excise Invoice• Freight Debit Note• Road Permit Form No 45K• ARE document• Packing List • Specification Sheet• Credit Note
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Change Management
Existing In SAP
Indenting/Monthly Projection Contract
Sauda Sales Order
Sauda Sale Note Order Filling Memo Invoice
Contract S.O DO Inv Excise Invoice
No Automatic Credit control Automatic Credit Control
No Transportation tracking and Cost settlement in the system. No documentation in the system
Transportation tracking and Cost settlement. Shipment doc, Shipment Cost doc, and transporter Invoice verification has to be done.
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Gaps
Debit Note will not be created automatically. The ship-to-party (Consignee) can not be changed in the
delivery document once it is created.The net weight calculation in case of liquid products Once the excise invoice is posted to accounts, it will not be
possible to cancel the invoice and create new invoice with the same number.
Release strategy for pricing condition in sale order.Release strategy for credit release based on credit value.Allocation of toners to customer.Cash discount based on quantity rather than %.
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Gaps
The following points were identified during the to-be presentation:Allocation of toners to customer.Cash discount based on quantity rather than %.