EGN_5620_Enterprise_Sys_SD Master Data Fall 2011 Regular final

EGN_5620_Enterprise_Sys_SD Master Data Fall 2011 Regular final

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Unformatted text preview: Sales and Distribution Sales and Distribution Master Data EGN 5620 Enterprise Systems Configuration Fall, 2011 Sales & Distribution Master Data Theories & Concepts EGN 5620 Enterprise Systems Configuration Fall, 2011 Enterprise Operations Planning Process Execution High Level Planning Procurement Process CO/PA Production Planning Forecasting Sales Planning Demand and Operations Management MPS Sales Information MRP Manufacturing System Execution Order Settlement Execution January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 3 High­Level Planning High­Level Planning Three high­level planning activities 1. Profitability analysis 2. Forecasting 3. Sales and Operations Planning (SOP) Sales Planning strategy for a product It feeds to Demand Management and then to: ◦ MPS (for trading­only operation) or ◦ MPS/MRP (production operation) January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 4 Sales & Operations Planning (SOP) Overview Sales and Operations Planning (SOP) covers various activities including the specification of medium term and long term sales volumes and the approximate planning of the production activities that are required to meet these volumes. SOP can be done at the level of finished products or using product groups. Any combinations of materials or even of product groups themselves can be grouped together into other product groups. Sales Planning ­ strategies Sales Planning ­ strategies Planning for: • Production quantities • Dates • Planning strategies based upon environment • Make­To­Stock (MTS) • Planning components • Make­To­order (MTO) • Driven by sales orders • Configurable materials • Mass customization of one • Assembly orders January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 6 Sales Planning ­ result Sales Planning ­ result Sales planning results in creating the demand program as an input for production plan Demand program feeds the production plan with the following data elements: ◦ Time Buckets ◦ Sales ◦ Production ◦ Stock levels ◦ Days supply January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 7 Demand Management Overview Demand Management Overview It creates a demand program by using ◦ customer requirements, and ◦ planned independent requirements It determines requirement quantities and delivery dates for finished products and assemblies. ◦ Note: Customer requirements are created in sales order management. Demand Management Overview Before creating the demand program, operation strategies (i.e., the methods of making or procuring a product) must be defined for each product. Using these strategies, production will be triggered by Sales orders (make­to­order production), or Stock orders (make­to­stock production) Demand planning Overview Demand planning Overview Demand planning is the starting point of the entire Supply Chain Planning process It follows a sales planning and execution scenario and makes use of a toolkit: ◦ statistical forecasting techniques, ◦ life cycle management, ◦ promotion planning, and ◦ additional data analysis and calculation tools The Practice of Quotation/Pricing The Practice of Quotation/Pricing ◦ Market price ◦ (margin due to strategic planning consideration) ◦ Quotation ◦ (profit) ◦ Direct cost, plus direct overhead & G/A overhead ◦ Direct cost, plus directoverhead ◦ Direct costs Material cost Equipment Labor cost Types of costs Types of costs Direct Costs ◦ Costs that are clearly chargeable to a specific work package. Labor, materials, equipment, and other Direct Overhead Costs ◦ Costs incurred that are directly tied to an identifiable deliverable or work package. Salary, rents, supplies, specialized machinery General and Administrative Overhead Costs ◦ Organization costs indirectly linked and apportioned to the order (or project) Cost estimation Macro (Top­Down) Approaches 1. Consensus methods 2. Ratio methods 3. Apportion method 4. Function point methods for software and system projects Cost estimation Cost estimation Micro (Bottom­Up) Approaches 1. Template method 2. Parametric procedures applied to specific task/order type 3. Detailed estimates with BOM and WBS work packages Sales & Distribution Master Data SAP Implementation EGN 5620 Enterprise Systems Configuration Fall, 2011 Business Process Integration FI MM SD Data Master Rules F I M S D IF FI M M MM S D SD January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 16 16 Business Process Integration SD S D January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 17 17 Sales Organization A sales organization belongs to exactly one company code A sales transaction is linked to only one Sales Organization Sales Organization: ◦ Sells and distributes products ◦ Negotiates terms of sales ◦ Responsible for these business transactions SAP allows assigning one or more plants to a sales organization. It allows assigning sales offices and employees to the sales organization January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 18 18 Distribution Channel It can be assigned to one or more Sales Organizations It identifies how products and services reach the customer January 2008 January © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 19 19 Division It can be assigned to one or more Sales Organizations It is an organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery) It is often used to define product line distribution January 2008 January © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 20 20 Sales Area Sales Area comprised of: ◦ Sales Organization ◦ Distribution Channel ◦ Division Used to link together the organizational aspects of sales to customers Also used for statistical analysis January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 21 21 Sales Area – (continued) US Sales S_ _ _ Retail Dist Channel (RE) Medical Division January 2008 January Chemical Division Wholesale Dist Channel (WH) Medical Division Chemical Division © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 22 22 Internal Sales Organization Typically defines a territory or market Linked to one or more Sales Areas A reference sales organization structure: ◦ Sales Offices Sales Groups ◦ Sales Persons Sales Office US Sales S_ _ _ Eastern Sales January 2008 January Western Sales © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 23 23 Sales Group & Sales Persons Sales Group ◦ Sub­division of a sales office, territory or market Sales Person ◦ Defined in Human Resources (HR) — Personnel Admin. Specifically defines an individual rather than a position (sales rep.) in sales processing January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 24 24 Internal Sales Organization US Sales S_ _ _ Eastern Sales (Office) Northeast Sales Group Southeast Sales Group Western Sales (Office) Northwest Sales Group Southwest Sales Group Salesperson 1 Salesperson 3 Salesperson 5 Salesperson 7 Salesperson 2 Salesperson 4 Salesperson 6 Salesperson 8 January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 25 25 Shipping and Loading Points A shipping point is the top level in the organization for shipping It usually exists physically in a plant A shipping point can be allocated to several plants It can be divided into several loading points (for more specialized handling) A delivery is always initiated from exactly one shopping point. Thus all items of a delivery belong to one shipping point. January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 26 26 Shipping Organization Plant P_ _ _ Freight Dock FD_ _ _ Loading Point 1 January 2008 January Loading Point 2 Express Dock ED_ _ _ Rail Dock RD_ _ _ Loading Point 3 Loading Point 4 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 27 27 Business Process Integration SD D Master ata S D January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 28 28 Master Data Core Elements ­ Customers Customer Master Data Material Pricing January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 29 29 Customer Master Customer Master Data is created in Sales Area: • Sales Organization • Distribution Channel • Division Sales Area US Sales S___ Distribution Channel - RE January 2008 January Division - 01 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 30 30 Customer Master ­ (continued) General Data: demographic data Company Code Data: Accounting information ata: al D er Gen ess r Ad d Sa l Sa es Da les ta: Customer 43 Sales & Distribution Data: Sales information January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 31 31 Customer Master A master record must be created for every customer consisting of: ◦ General data, ◦ Company code data (Financial Accounting­FI), and ◦ Sales & Distribution data (Sales and Distribution ­ SD) General data Address Control data Payment transactions Company Code data Account Mgmt Payment transactions Correspondence January 2008 January Sales/distribution data Sales Shipping Billing Partner Usage © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 32 32 Customer Master General Data – Address General Data – Address Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 33 33 Customer Master General Data – Control Data Account Control ◦ Vendor ◦ Authorization ◦ Trading partner ◦ Group key Tax Information ◦ Tax codes ◦ Fiscal address ◦ Country code ◦ City code Reference Data/Area January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 34 34 Customer Master General Data – Payment Transactions Bank Details ◦ Country ◦ Bank Key ◦ Account holder ◦ Bank Account ◦ Control Key ◦ Collection January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 35 35 Customer Master General Data – Marketing Classification ◦ Nielsen ID ◦ Customer classification ◦ Industry ◦ Industry codes Operating Figures ◦ Annual sales ◦ Number of employees ◦ Fiscal year variant Sales Prospecting ◦ Legal status January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 36 36 Customer Master General Data – Unloading Point Unloading Points ◦ Unloading point ◦ Default ◦ Calendar key ◦ Default Unloading Point ◦ Goods receiving hours January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 37 37 Customer Master General Data – Foreign Trade Export Data ◦ Country key ◦ TDO Date (Table of Denial Orders) ◦ SDN Date (Specially Designated Nationals) ◦ Boycott Date Usage ◦ Mainly civilian usage ◦ Mainly military usage Classification ◦ Biochemical warfare ◦ Nuclear nonproliferation ◦ National security January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 38 38 Customer Master General Data – Contact Persons Contact Person ◦ Name ◦ First name ◦ Department ◦ Function January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 39 39 Customer Master Company Code – Acct Information Accounting Information ◦ Reconciliation Account ◦ Sort key ◦ Head office Interest Calculation ◦ Interest indicator ◦ Interest cycle ◦ Interest calculation frequency in months ◦ Last interest run Reference Data ◦ Previous account number ◦ Buying group January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 40 40 Customer Master Company Code – Payment Transactions Payment Data ◦ Terms of Payment ◦ Tolerance group Automatic Payment Transactions ◦ Payment methods ◦ Payment block ◦ Alternative payer ◦ Grouping key ◦ Lockbox January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 41 41 Customer Master Company Code – Correspondence Dunning Data ◦ Dunning procedure ◦ Dunning block ◦ Dunning recipient Correspondence ◦ Accounting clerk ◦ Acct at customer ◦ Customer user Payment Notices To ◦ Customer ◦ Accounting – Sales – Legal January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 42 42 Customer Master Company Code – Insurance Export Credit Insurance ◦ Policy Number ◦ Institution Number ◦ Amount Insure ◦ Valid Until ◦ Lead Months ◦ Deductible January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 43 43 Customer Master Sales and Distribution – Sales Sales Order ◦ Sales District ◦ Sales Office ◦ Sales Group ◦ Order Probability ◦ Item Proposal Pricing / Statistics ◦ Price Group ◦ Customer Pricing Procedure ◦ Price List Type ◦ Customer Statistical Group January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 44 44 Customer Master Sales and Distribution – Shipping Shipping ◦ Delivery Priority ◦ Shipping Conditions ◦ Delivering Plant ◦ Order Combination Partial Delivery ◦ Complete Delivery Required By Law ◦ Partial Delivery per Item ◦ Max Part Deliveries ◦ Under/Over delivery Tolerances General Transportation Data ◦ Transportation Zone January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 45 45 Customer Master Sales and Distribution – Billing Billing Section ◦ Subs. Invoice Processing ◦ Rebate ◦ Price Determination ◦ Invoicing Dates Delivery and Payment Terms ◦ Incoterms ◦ Payment Terms Accounting ◦ Account Assignment Group Taxes ◦ Tax Classification January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 46 46 Customer Master Sales and Distribution – Partner Functions Partner Functions ◦ Partner Function (PF) ◦ Number ◦ Partner Description Partial list of Partner Functions Types ◦ SP – Sold­to­party ◦ BP – Bill­to­party ◦ PY – Payer ◦ SH – Ship­to­party January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 47 47 Business Partners Defines all of the parties involved in a business transaction Differentiates between their roles ◦ Customer ◦ Carrier ◦ Employees ◦ Etc. January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 48 48 Business Partners SAP automatically assigns a business partner to the customer master and to any transaction There are four default business partner parties: ◦ Payer (a legal entity) ◦ Sold­to ◦ Ship­to ◦ Bill­to They may be the same or different. More business partner parties can be added to carry out additional business transactions January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 49 49 Customer Account Group Customer masters are assigned to a customer account group Through field status maintenance, account groups can be setup for one­time customers, regional customers, internal … The customer account group controls both type and number range assignment for customers January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 50 50 Field Status Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity — create, change, or display January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 51 51 Business Partners Sold­to Party Customer who orders can default for all partner functions — sold­to, ship­to, payer, bill­to Primary type of business partner Independent and cannot be linked to other sold­to partners Sold-to Ship-to Bill-to Payer January 2008 January © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 52 52 Business Partners Ship­to Party Receive delivery Can be linked to more than one sold­to address Sold-to Ship-to Bill-to Payer January 2008 January © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 53 53 Business Partners Bill­to Party Partner who is delivered the invoice Can be linked to more than one sold­to address Sold-to Ship-to Bill-to Payer January 2008 January © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 54 54 Business Partners Payer Partner who pays the bill Sold-to Can be linked to more than one sold­to address Ship-to Bill-to Payer January 2008 January © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 55 55 Single and Multiple Ship­to Parties Sold-to: 10 Single ship-to Ship-to: 10 Bill-to: 10 Multiple ship-to’s Single payer Ship-to: 11 Payer: 10 Sold-to: 10 Ship-to: 10 Bill-to: 10 January 2008 January Payer: 10 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 56 56 Business Partners Sold-to Sold-to Ship-to Bill-to Ship-to Ship-to Payer Ship-to Ship-to January 2008 January Ship-to © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP reserved. 57 57 Master Data Core Elements ­ Pricing Customer Master Data Material Pricing January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 58 58 Pricing A very robust module in SAP Highly touted “World­class” functionality Very easily tailored to meet business needs Gross to net pricing for material January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 59 59 Standard Pricing Process Standard Pricing 1. Calculates the gross price 2. Then applies ◦Discounts ◦Surcharges ◦Applicable Taxes 1. Calculates the final price Final price = gross price ­ discounts + surcharges + taxes January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 60 60 Cost­Plus Pricing Process Cost­plus pricing 1. Captures the base cost 2. Then applies ◦ Markup ◦ Discounts ◦ Surcharges ◦ Applicable Taxes 1. Calculates the final price Final price = cost + markup ­ discounts + surcharges + taxes January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 61 61 Pricing Components Pricing uses tables to match the condition of order to the applicable pricing routine These routines can 1. Add/Subtract a fixed amount, or give a discount based on a percentage, 2. Adjust the price based on the dollars, weight, quantity or any other field on the order (such as customer master or material master, etc.), and then 3. Accrue amounts (considering rebates, commissions, or whatever the company determines necessary. January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 62 62 Pricing Procedure Pricing us...
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