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Unisoft Infotech Private Limited

mySAP ECC 6.0 Implementation at

Maini Precision Products Pvt. Ltd.

Business Blueprint
SAP Sales & Distribution

Prepared By
Tejas Suhas Phene

Business Process Blueprint


Sales & Distribution

Sign Off Document


Project Name:
Project Manager:
Project Phase:
Prepared By
Reviewed By

LOTUS Lean Operations Through Us in SAP


Document Version
N.Anandapadmanaban
1.0
No:
Document Version
Business Blueprint
07/01/2009
Date:
Tejas Suhas Phene
Preparation Date:
07/01/2009
N.Anandapadmanaban Review Date:
07/01/2009

Document Tracking
Revision

Version date

Revised by

1.0

07/01/2009

Tejas Suhas Phene

2.0

12/03/2009

Tejas Suhas Phene

Change Description
Organization structure &
Warehouse exports scenario

Name
The following acknowledges the acceptance of Business Blueprint of mySAP
ECC 6.0 Implementation Project developed in agreement between Unisoft
Infotech (Unisoft) and Maini Precision Products Private Limited (MPP).

Reference
This acceptance is in accordance with the terms and conditions expressed in
Unisoft Proposal to Maini Precision Products Private Limited (MPP).

Work Accepted
Business Blue Print Document for Sales & Distribution with the file name:
MAINI_BLUEPRINT_SD_100_MAIN DOCUMENT_VER_2.0.DOC
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Acceptance
In witness thereof, the parties, in signing this acceptance, have agreed that
Unisoft Infotech has successfully completed the Business Blueprint and has
met all the deliverables as mentioned in the contract.

Name

Title, Department

Company

Date

Chaitanya P. Koranne

Process Owner

MPP

18/03/2009

Sridhar S.

Key User

MPP

18/03/2009

N.Anandapadmanaban

Project Manager

Unisoft

18/03/2009

Tejas Suhas Phene

Application
Consultant

Unisoft

18/03/2009

Signature

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CONTENTS
1.0 Introduction.......................................................................................................6
1.1 Purpose of this Document ........................................................................ 6
1.2 Who should read this document .............................................................. 6
1.3 Document Derivation ............................................................................... 6
1.4 Sales Objectives ..................................................................................... 6
1.5 Who Created It? ...................................................................................... 6
2.0 Project Charter .................................................................................................7
2.1 Group history.............................................................................................7
2.2 Solution Chosen .......................................................................................7
2.3 Project objectives .....................................................................................7
2.4 Project Goals ............................................................................................7
3.0 Organization entities of my SAP 6.0 ECC .......................................................8
3.1 Financial Structure ....................................................................................8
3.2 Logistics Structure Definition .................................................................8
3.3 Organization Structure of Sales & Distribution ........................................10
3.4 Sales Organization..................................................................................11
3.5 Distribution Channel ................................................................................11
3.6 Division....................................................................................................11
3.7 Sales Area................................................................................................12
4.0 Sales and Distribution Master Data...............................................................13
4.1 Customer Master.....................................................................................13
4.2 Service and Material Master Record .......................................................14
4.3 Customer Material Information ................................................................14
4.4 Condition Record Maintenance ...............................................................15
4.5 Excise Record Maintenance....................................................................15
5.0 Number Ranges ..............................................................................................16
6.0 Business Process Master List. (BPML).........................................................17
7.0 Configuration AS-IS Process .........................................................................18
7.1 Enquiry ....................................................................................................18
7.2 Quotation.................................................................................................18
7.3 Sample Order..........................................................................................18
7.4 Bulk / Blanket Order ................................................................................18
7.5 Scheduling ..............................................................................................19
7.6 Preshipment ............................................................................................20
7.7 Dispatch ..................................................................................................20
7.8 SCM ........................................................................................................21
7.9 Complaints ..............................................................................................21
7.10 Postshipment ........................................................................................21
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7.11
7.12
7.13
7.14
7.15

Incentives ..............................................................................................22
Excise....................................................................................................23
MIS........................................................................................................26
Cost Reduction......................................................................................26
Miscellaneous .......................................................................................26
Agency Commission ..............................................................................26

Configuration TO-BE Process ......................................................................27


7.16 Direct Sales...........................................................................................27
7.17 Warehouse Export Sales ......................................................................31
7.18 Customer Job Work ..............................................................................35
7.19 Deemed Exports ...................................................................................38
7.20 Shipment Tracking port to port ..............................................................42
7.21 Returns Sales Order Processing...........................................................44
7.22 Scrap Sale.............................................................................................50
7.23 Asset Sale .............................................................................................52
7.24 DEPB Sale ............................................................................................54
7.25 Sales Forecasting .................................................................................55
7.26 Commission Sales ................................................................................56
7.27 Credit Memo Processing .......................................................................57
7.28 Supplementary Billing............................................................................58
7.29 Replacement Sales Order Processing ..................................................59
8.0 Tentative List of Forms ..................................................................................61
9.0 Tentative List of Reports................................................................................63
10.0 Authorizations.................................................................................................65
11.0 Annexures
11.1 As Is To Be Process mapping
11.2 SD Module Wishlist

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1.0 Introduction
1.1 Purpose of this document
This document is the Business Blueprint for delivering the SAP project at
MPP. It outlines the business requirements, AS-IS analysis, TO-BE
processes and design considerations for the project. This document,
however, will not cover the technical details of the actual customizing and
other issues.

1.2 Who should read this document


This document is meant for Process Owner, Key User and End users of
the Marketing department at MPP. This document explains all the
specifications that are broadly captured for successfully delivering the SAP
project. This is a controlled document and its circulation is left to the
discretion of Unisoft and MPP.

1.3 Document Derivation


This document is derived based on the following activities conducted at
MPP starting 04th November 2008 to 31st December 2008.
 MPP key user discussions.
 MPP requirement discussions with Process owners.
The intent of this document is to capture the entire design to support the
requirements specified in the requirement document.

1.4 Sales Objectives


The objective of this Blueprint Process is to define how to process sales
activities in the system and ensure that MPP can meet customers
requirements.

1.5 Who created it?


The Blueprint has been created by the SAP Sales and Distribution
functional consultant of Unisoft assimilating inputs given by the Sales and
Marketing team of MPP.

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2.0 Project Charter


2.1 Group History
Maini Precision Products commenced business in the year 1973. The first
customer was Bosch. Over the past 35 years the company has grown
considerably to register a turnover of Rs. 150 crores in 2007-08. Maini
operates through two Manufacturing locations - at Peenya and
Bommasandra at Bangalore with a total of 8 units. Maini Precision
Products today is a leading manufacturer of Auto Components, Precise
Machined Components & Aerospace components for globally renowned
automotive original equipment manufacturers.

2.2 Solution Chosen


Unisofts solution based on SAP ERP ECC 6.0 specially catering to
market.

2.3 Project Objectives








To prepare for expansion and growth plans in the coming


years.
To optimize total Supply Chain Operations in terms of
Delivery, Quality and Cost.
To help the decision makers in achieving set business targets.
To move towards Lean Manufacturing by applying Value
Stream concept comprising Material and Information flow
throughout the supply chain.
To integrate all the business functions like Business
Development, Sales, Production, Finance & Controlling,
Vendors, etc on one common system.

2.4 Project Goals



To implement SAP solutions in the core business functions.

To reengineer and establish the business processes so as to


reduce non-value adding activities.


Cutting down and thereafter eliminating the Wastage cost.

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3.0 Organization entities of mySAP 6.0 ECC


3.1 Financial Structure
Company Code

Depicted from a tax law, commercial or other financial
accounting standpoint

Corresponds to a legally independent company

Each company code has exactly one domestic currency, in
which you create the balance sheet.

It is possible to define up to 2 additional currency roles,
example global company currency.
Company Code
BP01
BP02

Description
Maini Precision Products
Maini Global Aerospace

3.2 Logistics Structure - Definition


Plant
 Plant is a location that Stocks, Manages, and Valuates Inventory.
 May be a Physical Site with Multiple Manufacturing/Production
Lines
 May be Multiple Manufacturing/Production Lines at One Physical
Site
 Can be a Physical Location (cost centers may or may not be
associated to a plant i.e. administrative vs. manufacturing cost
centers)
 A Plant is Assigned to a Company
 Purchasing Organization and Sales Organizations are Assigned to
Plants
Plant Code
BP11
BP12
BP13
BP14
BP15
BP16

Description
B59 Unit
B165 unit
Bommasandra Auto Unit
Bommasandra Aero Unit
B163 Unit
C217 Unit

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Shipping point
 An organizational unit in Logistics that performs shipping
processing.
 The shipping point is the part of the company responsible for the
type of shipping, the necessary shipping materials and the means
of transport.
 A shipping point can be allocated to several plants.
 A shipping point can be divided into several loading points.
 A delivery is always initiated from exactly one shipping point.
Thus, all items of a delivery belong to one shipping point. Groups
of deliveries also belong to exactly one shipping point.
 You can influence delivery scheduling via allocation to departure
zones.
 The shipping point can be proposed automatically during order
processing depending on the plant, loading group and shipping
condition.
 A shipping point has an address.
 The shipping point is used as a selection criterion for lists of
deliveries and the work list deliveries.
 The shipping point is used as a selection criterion for processing
deliveries like printing, picking or goods issue.
 You can determine the printer destination for messages differently
for every shipping point on account of shipping documents.

Shipping
point
BP11
BP12
BP13
BP14
BP15
BP16

Description
B59 Shipping Point
B165 Shipping Point
Bommasandra Auto
Shipping Point
Bommasandra Aero
Shipping Point
B163 Shipping Point
C217 Shipping Point

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3.3 Organization Structure of Sales & Distribution


MAINI PRECISION
PRODUCTS
Company Code BP01

Domestic
Sales Organization BP01

Exports
Sales Organization BP02

Direct Sales
Distribution Channel - 01

Automobile Parts
Division - 01

Aerospace Parts
Division - 02

Hydraulic Parts
Division - 03

MAINI GLOBAL
AEROSPACE
Company Code BP02

Stock Transfer - Domestic


Sales Organization BP03

Stock Transfer - Export


Sales Organization BP04

Agency Sales
Distribution Channel - 02

Material Handling
Parts
Division - 04

Power Oil and


Gas Parts
Division - 05

General
Engineering Parts
Division - 06

Others
Division - 07

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3.4 Sales Organization


The sales organization is an organizational unit within the logistics that
structures the company according to its sales requirements. A sales
organization is responsible for the sale and distribution of goods and
services. It represents the selling unit as a legal entity. Each business
transaction is processed within a sales organization.
Sales Organization
BP01
BP02
BP03
BP04

Description
Domestic Sales
Export Sales
Stock Transfer- Domestic
Stock Transfer- Exports

3.5 Distribution Channel


The distribution channel represents the channel through which salable
materials or services reach the customers. Sales Order belongs to one
Distribution Channel (Header Level Assignment).
Distribution Channel

Description

01

Direct Sales

02

Agency Sales

3.6 Division
Companies with larger varying product groups may use the division,
organization element to divide them. It is possible to define customerspecific rules for each division. Divisions for MPP will be:
Division

Description

01

Automobile Parts

02

Aerospace Parts

03

Hydraulic Parts

04

Material Handling Parts

05

Power, Oil and Gas Parts

06

General Engineering Parts

07

Others

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3.7 Sales Area


In MySAP 6.0 ECC, a sales area is an organization entity. It consists of
sales organization, distribution channel and division. Thus, any
combination of these three elements comprises a sales area.
Sales Organization
BP01
BP02
BP03

BP04

Domestic
Sales
Export Sales
Stock
TransferDomestic
Stock
TransferExports

Distribution Channel

Division

01

Direct Sales

01

Automobile Parts

02

Agency Sales

02

Aerospace Parts

03

Hydraulic Parts

04

Material Handling Parts

05

Power, Oil and Gas Parts

06

General Engineering Parts

07

Others

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4.0 Sales and Distribution Master Data


4.1 Customer Master
A company deals with different natural and legal persons during business
transactions. All roles a natural or legal person can assume are
represented by business partners. A customer is type of business
partners.
Customer master contains all the data necessary for processing the
business transaction. This information is copied over to service order, and
can be changed if required.
Customer Master contains General data, company code data and Sales
and Distribution data. Customer master is a set of partner, and consists of
these partners:
 Sold to party, who places the order
 Ship to party, where the delivery is dispatched.
 Bill to party, where the invoice is sent.
 Payer, who pays the bill.

Master Data: Customer Master Views


Customer
: K1
Sales organization : 1000
Distribution channel : 12
Division
: 00

Create:
Screen Views:

Create:

General data
Address
Control data
Marketing
Unloading points
Contact person

Valid
Validfor
forboth
both
accounting
accountingand
andsales
sales

Sales area data


Valid
Validfor
forSales/Distribution
Sales/Distribution

Screen Views:

Sales
Shipping
Billing
Partner functions

Dependent
Dependenton:
on:
--sales
salesorganization
organization
--distribution
distributionchannel
channel
--division
division

Create centrally: Company code data


Screen Views:

Account Management
Payment transactions
Correspondence
Insurance

Valid
Validfor
forAccounting
Accounting
Dependent
Dependenton:
on:
-company
-companycode
code

SAP AG

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4.2 Service and Material Master Record


Materials and services are combined in the mySAP 6.00 ECC System
under the term material. All information necessary for the management of
a material and its stocks, as well as its use, is maintained in the so-called
material and service master record.
Different company areas in SAP modules access the material master and
service master records, which therefore must meet a wide variety of
requirements. During sales processing, the system repeatedly accesses
the material and service master records. It is one of the basic sources of
data for sales processing. The material and service master record is
accessed, for example, in the inquiry, in the quotation and in the sales
order. Data in the material and service master record is also of great
importance for billing. Material types classify materials. Internal number
range is used for the entire material and service master created in MPP.
Following are the material type considered for MPP.
1.
DIEN
Service Material
2.
FERT
Finished Goods
Material number can be searched by material description, old material
number, material group, product hierarchy and so on.

4.3 Customer Material Information


Data for a service type/material defined for one specific customer is stored
in the customer material information records. This data includes
 The customer-specific material number
 The customer-specific material description
If, for example, one of your customers uses a number or description for a
service type/material, which differs from the number or description your
company uses to identify it, you can store the material number or
description used by the customer in the customer material information
record.

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4.4 Condition Record Maintenance


Pricing
The SD module automatically arrives at pricing by determining and using
relevant predefined prices on products or groups of products. The system
suggests a price, which can be overwritten at the time of ordering.
Prices may be found in price lists, agreements with customers or depend
on the Service, product or product costs. Additions may depend on the
customer, customer group, product, product group, etc. Prices typically
apply for a given period of time.
Tax Jurisdiction
Taxes as applicable in a country as per material and customer can be
configured using pricing condition types for the relevant taxes.The SD
module uses this functionality to arrive at the applicable tax rates for a
combination of customer and material based on the tax applicable.

4.5 Excise Record Maintenance


Excise Record maintenance deals with the classification of the various
materials presently sold by the company from the Excise point of view.
Firstly all the materials are broadly classifies into a set of chapter ids under
which all the materials in the organization will fall. Next a combination of
the material and chapter id is maintained. Also the prevailing excise rates
are maintained in SAP to enable automatic updation in excise
transactions.

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5.0 Document Number Ranges


Sales Documents

Number Range

Inquiry
Quotation
Sample Development Order
Standard / Bulk / Job Work Order
Scrap Sale / Asset Sale/ Credit
Memo Request / Supplementary

Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering

Delivery Documents

Number Range

Domestic Delivery
Export Delivery
Warehouse Delivery
Domestic Return Delivery
Export Return Delivery

Billing Documents
Proforma invoice
Domestic invoice
Banker invoice
ASN invoice
Job Work invoice
Credit Memo
Supplementary Invoice
Free of Charge Invoice
Cancellation Invoice

Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering

Number Range
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering
Internal Numbering

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6.0 Business Process Master List (BPML)


 Direct Domestic Sales
 Direct Export Sales
 Warehouse Export Sales
 Customer job work
 Scrap Sales
 Sales Returns Domestic
 Replacement delivery
 Sales Return Exports
 Deemed Exports
 Shipment tracking port to port
 Sales Forecasting
 Commission Sales
 Credit Memo Processing
 Supplementary Billing

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7.0 Configuration AS- IS Process


7.1 Enquiry:
Enquiries are generated from Existing and New customers via email,
personal visit, existing customer referrals, trade fairs and web portals.
Enquiries are booked or rejected by Key Account Manager (KAM) in Auto
division based on experience with dealing with MPPs product line. In Aero
division all enquiries are booked by the KAM.

7.2 Quotation:
Any booked Enquiries are passed onto Estimation department to get
information on price to be quoted. For all Enquiries that are regretted
appropriate reason is specified and documented. For accepted Enquiries a
Quotation is generated based on inputs from the Estimation department.
Revised quotations are sent to customer with inputs again from the
Estimation team when customer does not agree to quoted price.

7.3 Sample Order:


Sample order is released by customer once the quoted price has been
accepted. Samples are developed against the Sample order received by
the Marketing department. Customer feedback is sought regarding
Samples developed and follow-up is done for Bulk / Blanket orders.
Wherever required the revised samples are sent to the customer. Any
tooling costs are quoted agreed with the customer at this stage.

7.4 Bulk / Blanket Order:


Exports:
For all DDP (Delivered Duty Paid) customers, long term blanket orders are
received without any schedules. Actual schedules will be received on
regular basis later on and incorporated into the Order. For all NON-DDP
customers, quantity & required date is pre-specified at the time of placing
the order itself.
Price is revised with consent of customer when there is change in cost of
raw materials, exchange rate fluctuation, process cost change, etc.
Wherever necessary amendments are made to Order to incorporate the
changes in quantity and schedules. The Central Information System (CIS)
is updated all the order data. Proforma invoice is sent to the customer for
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opening the Letter of Credit (LC) wherever the payment terms are
specified as Against LC
Domestic:
Same process as detailed above in exports is followed.
Job Work:
Same process as detailed above in exports is followed.

7.5 Scheduling:
Schedules are received from Non DDP customers at the time of release
of order itself. For DDP customers Schedules are received by EDI, fax,
emails, auto emails, retrieved from customers' websites and logistics
service providers. For DDP customers, the warehouse stock quantity is
constantly monitored considering the warehouse receipts, planned
dispatches and transit stock.
The monthly dispatch plan is made for DDP customers are made either
through the Post Shipment Monitoring System (PSMS) or using the Excel
sheet. Based on the schedules received, the average per day requirement
and hence safety stock equivalent to 30-35 days of consumption is arrived
at. While scheduling the dispatch the transit time of 45 days for Europe
and 60 days for USA is taken into consideration. Based on the actual
Warehouse & transit quantity, excess/short quantity is arrived at which is
tracked to arrive at the actual required quantity to be dispatched during
the month and subsequent months. A plan is formulated after considering
the pre-decided dispatch days for various destinations (taking into
consideration the ship connection in order to save transit time) and
circulated to PPC, Production, & Purchase department
For Domestic customers, schedules are received by month end for the
next 1 month or 3 months depending upon the customers. These
schedules are confirmed with PPC (Production Planning Control) Dept to
check if the quantity is possible to be dispatched during the month.
In case stock at warehouse reduces below the allowed quantity an
airfreight alert is sent to PPC and other departments. The cost of the
airfreight is borne by MPP when there's any delay in warehouse stock
replenishment and by the customer when the pulled quantity is in excess.

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7.6 Preshipment
Marketing dept follows up with Final Quality Audit (FQA) dept as and
when dispatches are due in the Order. The received packing slip is tallied
against the dispatch order position and passed onto the Excise/Dispatch
dept and also updated in the CIS. Key account manager (KAM) take a
decision to accept/reject any deviations and the decision is conveyed to
the FQA dept and all others to whom packing slip was originally sent. In
case of Air freight scenario KAMs specify on the packing list as to who
pays for the shipment. Special care is taken to ensure that if RM is
imported under Advance license scheme the corresponding export also
should be under Advance License.
For low value export shipments (< $2000) goods are sent as Free of
Charge (FOC) items since the cost associated with customs clearing etc
far exceeds the cost of the items themselves. An offering slip is used
instead of packing slip in all the domestic dispatches.
Invoices are created for the quantity to be dispatched. In case of exports
to new customers an application is made to Export Credit Guarantee
Corporation (ECGC). Insurance coverage and freight rates for the
dispatch are negotiated through an open policy for the whole year. Under
the Sales Turn Over Policy (STOP) all movement of material is covered
by an insurance policy from Tata AIG and renewed every year. Wherever
specific policies are required they are obtained as in the case of Capital
goods movement.

7.7 Dispatch
Invoice, packing list & shipping instructions are thoroughly verified. The
packing list is sent by Excise dept to FQA dept for pasting labels on the
packages. The Invoice is used by Excise dept for creation of Generalized
System of Preference (GSP) or Certificate of Origin which helps avoid
payment of import duty in the country where its applicable. Also ARE1 and
other Excise related dispatch documents are created and transport
arrangements for dispatch of goods is made.
For domestic dispatches customers pick the goods in most of the cases. In
all cases, local invoices and Form-515 accompany the dispatch.

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7.8 SCM
All deliveries To and From the warehouse are documented in the PSMS.
Data about deliveries processed by the warehouse is intimated either
through mail or through the warehouse website. For these deliveries
warehouse invoices are created wherever required and in other cases the
Advance Shipment Note (ASN) acts as the warehouse invoice. Follow up
is done for unpaid invoices for both DDP and Non-DDP customers by
email or telephone.

7.9 Complaints
All complaints are handled using the Maini Team Solutions (mTs)
approach which is similar to 8D formats which gives problem description,
interim action, root cause, permanent action, implement & control. The
complaint is forwarded to the concerned unit with a copy to the Quality
Systems department via email. All complaints are registered in the CIS. If
required the KAM make available photographs or defective sample for
analysis by the Quality department. The Quality department provides
Corrective and Preventive action for the complaint.

7.10

Post shipment

Original shipping documents (which include original Bill of Lading (B/L),


DEPB, copy of Shipping Bill, Original customs attested invoice & packing
list, Fumigation certificate, Freight certificate) are collected from the
service providers within 2 days of the dispatch from the plant and
negotiated with the bank.
These documents are thoroughly checked to ensure that the AD code
(Authorized Dealer - our Bank) is correctly appearing in the Shipping Bill.
Also other parameters like Currency, conversion rate, description, etc are
checked. In case of any discrepancy, the documents are sent back to the
Service provider to be corrected with appropriate Customs seal/signature.
Once everything is in order the Bill of Exchange is created as per standard
format. Also these document details are recorded in the CIS.
In case of exports by Air Freight the details of flight are conveyed to
customer by email, fax or telephonically. For sea freight dispatch details
(Invoice number, date, Bill of Lading/Airway Bill number & date & expected
date of arrival at destination) provided by the service providers is
conveyed to non DDP and a few of the DDP customers.
Any payment received from the customer is tracked against a particular
ASN by marketing department and this data is entered by the Finance
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department into the CIS. The payment received is used by Finance


department to close the banker invoice on a FIFO basis. Also Finance
hands the details of debtors whose payments are overdue at the end of
every month.
Any parts rejected at the warehouse are quarantined and accordingly
documented in PSMS. Upon successful rework the quantity is reversed to
good stock in PSMS. For any rejections at the customer place the same is
scrapped or sent back to warehouse or MPP. A debit note is issued by the
customer for the scrapped or returned quantity which is sent to MPP
Finance through Marketing for accounting purposes. The rejected parts
sent to warehouse are quarantined and reworked if possible. Appropriate
entries are made in the PSMS.
Whenever price revision takes place with the customer, the impact of
warehouse & transit stock as on the date of price increase is arrived at.
Quarterly premium should be sent to Export Credit Guarantee Corporation
(ECGC) within the 15th of every quarter. Monthly export sales returns
should be sent to Engineering Export Promotion Council (EEPC) within
15th of the next month. The Registration-cum-Membership Certificate
(RCMC) is renewed before its expiry once every 3 years.

7.11

Incentives
Bank Realization Certificates (BRC) is got back from bank through
Finance after certification and documented in the register.
Whenever Duty Entitlement Pass Book (DEPB) rates are revised by the
Govt, the description of export items are reviewed to be in line with
prevailing DEPB rate list. The same are incorporated in the PSMS and
ERP master files. The DEPB is sold to the reliable and high bidder based
on the prevailing market rate which is quoted based on value of DEPB,
no. of shipping bills, port of import. DEPB can be either used for imports
or can be sold in the market. As & when imports are to be cleared,
appropriate decision is taken whether to import under Advance License or
under DEPB.

Advance Licensing is the mechanism whereby Govt. allows import of Raw


material at 0% duty against assured export of pre-specified quantity of
finished goods arising from conversion of the imported raw material.
Export Promotion Capital Goods (EPCG) Scheme, enables import of
capital goods, jigs & fixtures, spares, tooling at a concessional rate of
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import duty - 3% instead of the normal rate of 35%. Export Obligation


would be fixed at the time of issue of EPCG license by the JDGFT,
Bangalore which is 8 times the duty saved which should be fulfilled in 8
years from the date of first import.

7.12

Excise

RG23A Part II register is maintained for taking input credit on raw material
and consumables. Cenvat credit is availed on the duplicate for transporter
copy of invoice received from the supplier. Input credit is availed on the
basis of GRN No. given by the Stores dept. at the time of receipt goods
from the supplier. Credit is availed on day today basis. Debit entries are
made on the basis of total duty payable at the end of every month. In case
of exports duty debit is made on the basis of ARE1 (for export of goods
under Rebate claim). This register will be submitted to CEX along with
monthly ER1 returns
Service Tax Register is maintained for taking input credit on services
rendered and charged in bills in relation to manufacture(like telephone
bills, Security charges etc.,). Debit entries are made on the basis of total
duty payable at the end of every month. In case of exports duty debit is
made on the basis of ARE1 (for export of goods under Rebate claim).This
credit can be availed only after payment to the service provider. Payment
details are required for availing credit. This register will be submitted to
CEX along with monthly ER1 returns
Personal Ledger Account (PLA) register is maintained for payment of duty.
When there is no balance available in RG23A Part II , RG23CPart II and
Service Tax Register then payment will be made in PLA by e-payment.
Annexure -10(Proforma for monthly return under Rule 7 of the Cenvat
credit Rules 2001(Inputs & Capital goods) - Consolidated entries of
RG23A Part II & RG23CPart II. This register will be submitted to CEX
along with monthly ER1 returns.
RG-1 - DAILY STOCK ACCOUNT: This register is maintained for the daily
record of FG(Finished Goods) manufactured and cleared. Also for
maintaining of waste and scrap generated during the production and
receipt from the Job workers and cleared on payment of duty.
Form E.R. 1 - MONTHLY RETURN: ( Annexure - 12)- Monthly return for
production and removal of goods and other relevant particulars and
CENVAT credit under Rule 12 of Central Excise Rules, 2002 and rule 9(7)
of CENVAT Credit Rules, 2004.
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Tax invoice [BED14%, ECess2%, SHECess1% & VAT 12.5 %]


Bill of sale [BED 14%, ECess 2%, SHECess 1% & CST 2% against form C]
Stock transfer invoice [BED 14%, ECess 2%, SHECess 1% & No Sales Tax]

For Exports the ARE1 document and Central Excise export documents are
created using Udyog software for each dispatch which is directly exported
by MPP. Also supporting documents for export are created namely:
(a) DEPB declaration- This is a declaration containing Customer invoice
No/dt, DEPB serial number and rate of DEPB.
(b) Form SDF: This contains data like Invoice No/dt., Bank AD code &
date and other declaration.
(c) Cargo declaration.
Prior to domestic dispatches the following documents are created namely:
(a) Original, duplicate and extra copy of invoice (3nos),
(b) Original and duplicate copy of Form VAT 515.
Prior to export dispatches the following documents are created namely:
Export Invoice (5 copies), Packing list( 5 copies), A.R.E.1(Original and
duplicate copies), DEPB declaration(Original), Form SDF(Original) and
Cargo declaration(Original).These documents to be sent to shipping
agents one day before the dispatch.
Form Annexure -19 (Statement regarding Export of excisable goods
without payment of duty under rule 19) Original and duplicate copies of
A.R.E.1 after attestation from the Customs are received with in 10 days.
After receipt of the same, data is filled in the prescribed form such as
ARE1 No/dt, duty details and dt. of shipment Order by customs. Form is
submitted to CEX along with Original & Duplicate copy of ARE.1 in
duplicate. This has to be filed once in three months (quarterly basis)
example January 08 to March 08.
At the end of each month BSR stock status sent by FQA is verified with
inputs from RG1 and ERP.
Before the 3rd of every month Cenvat statement details containing
information from RG23A, RG23C, PLA, Service Tax are to be presented to
Accounts dept [Opening bal+ Total credit - Total debit= Closing bal]
UT1 bond is submitted to Assistant Commissioner of Central Excise before
making exports. After typing Name and address, ECC No etc. in the
prescribed statement and submit to AC. Renewal of UT1 be made before
one month of due date. If it is an existing unit UT1 (5 copies), Annexure 19, Annexure-63 and covering letter to be submitted to AC. On verification
of the above will allot the serial Number to us. This serial number is to be
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mentioned in the A.R.E.1 and invoice at the time of Exports. This is valid
for one year.
FORM ST-1: This is an application form for registration under Section 69
of the Finance Act, 1944 (32 of 1994). This is a prescribed form to be
filled along with copy of Excise Registration Certificate, Memorandum of
Association & Articles of association, Pan certificate with a covering letter
to the Commissioner of Central Excise(Service Tax). On verification of the
same Service Tax Registration Certificate is issued to us with Service Tax
certificate Number.(Ex.AABCM8269RST001(MPP B-165). On receipt of
the Form ST-1 MPP starts making payment of Sales Tax collected from
the GTA (Goods Transport Agency)/ Business Auxiliary services to the
government.
Bills pertaining to carriage outward and inwards are calculated as Freight
@ 25%, Service Tax (ST) @12% on 25% of Freight, Educational Cess
@2% on ST, S&H @1% on ST. MPP cannot take credit for the ST paid for
Carriage outward whereas it can do so for the ST paid on Carriage
inwards in the Service Tax register. All Service Tax thus calculated is paid
through e-payment.
Business Auxiliary services (BAS): Service tax is paid for the services
rendered abroad. This is paid as per the documents/details given by
marketing/accounts department and is calculated as ST@12% on BAS,
Educational Cess @2% on ST, S&H- @1% on ST. As before this is paid
through e-payment. MPP is eligible to take credit for this ST in Service
Tax register.
Form ST-3 (Return under section 70 of the Finance Act, 1994). This
has to be filled as per the prescribed format and is to be filed on quarterly
basis. Also a separate excel statement is maintained for the monitoring of
Service tax on GTA & Business Auxiliary.

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7.13

MIS
All Outward Carriage Expenses (OCE) are documented are updated to
the Finance department.
Monthly sales order, schedules and sales plan data is updated in the CIS
by the KAMs.

The monthly and hence the cumulative front page is updated by the
Marketing department. The delivery performance overall and unit wise is
arrived at from the Front page sales details.

7.14

Cost Reduction
Every quarter the best rates are negotiated with the service providers.
Both Imports and export bills of service providers are checked if in line
with their quote. After quarter ending, actual OCE expenditure is
monitored against budgeted OCE. By year end, this is consolidated,
checked against Finance figure and tallied.

7.15

Miscellaneous
Agency Commission:
Agency commission is paid to overseas agents as per agreed terms of
sales. Commission % is notified in the Shipping Bill at the time of
shipment itself which is part of Shipping Instructions. Shipping Bill copies
are collected and necessary documents as prescribed by bankers are
created from time to time and submitted for wire transfer of agency
commission.
Warehouse Storage and Sorting Expenses:
Warehouse storage/sorting bills are received every month from Service
Providers. These are checked against their quote and passed for
payment. Every 6 months, actual expenses is monitored through excel
sheet to see if it is well within the budgeted %. If not various actions
taken such as changing of warehouse, negotiation, etc.

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Configuration TO-BE Process


7.16

Direct Sales:
Domestic Sales

Export Sales

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Enquiry:
o Customers RFI request (seeking information like contact details of
Head of departments total building space, certifications, department
wise number of people, no of factories, processes, machines,
customers and their shares, industry wise share , financial data etc)
will be handled through Document Management System (DMS)
module in SAP.
o As regards uploading of customer schedules into SAP, the
methodology to upload will be decided after consultation with the
customers and the project management team of project Lotus. The
ultimate aim is to upload all schedules from customers into SAP
without any manual intervention provided the formats in which
schedules are received are SAP friendly.
o All Enquiries will compulsorily be booked by KAMs in SAP.
o A document type will be created for Enquiries, which should be used
to enter data.
o The document number will be auto generated and auto incrementing
from a predefined series.
o If Enquiry is out of scope, it will be regretted right away and reason for
regret will be selected from a predefined list maintained in the Enquiry.
o Estimation department will have to run a report to pull up the list of
Enquiries pending Estimation.
o Drawings, norms and Enquiry related data will be linked using the
DMS module.
o Provision to enter only the mandatory header data with an excel sheet
attachment containing all the parts and quantities will be made (for
Aero department).
Estimation:
o The Estimation process will be carried out in SAP Controlling module.
o Please refer the SAP Controlling module Blueprint for Estimation
processes.
o The Estimation department will notify Sales department regarding the
output of the estimation process through official mail.
Quotation:
o Quotation will be prepared with reference to the Enquiry and consists
of specifications, MPP part number, price, tax, delivery, validity date
and other details input from the Estimation step.
o A document type will be created for Quotation, which will be used to
maintain data.
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o The document number will be auto generated and auto incrementing


from a predefined series.
o If the Quotation doesnt result in a Sales Order, the reason will be
chosen from a predefined set of reasons in the Quotation.
o Provision to revise Quotations if required by customer will be made
either in the same Quotation or by referencing the Original quotation.
o Wherever required the Cost breakdown sheet availed from Estimation
department will be made available to the customer.
o The companys terms and conditions accompanying the Quotation will
be maintained as a text item thus allowing modification on a case to
case basis.
o A link between the Quotation and the Drawing revision version will be
maintained through the DMS module in SAP.
o For Aero customers the Single Line Quote format will be made
available to send to customers by email or fax.
o Wherever necessary tooling cost and the way it will be charged to
customer will be maintained in the Quotation.
o The Quotation output will only be made available in a standard format
and not in customer specific format through SAP.
Sales Order
o A separate standard order document type will be created for Samples
sales and a scheduling agreement document type for both the Direct
Domestic and Direct Export sales process.
o The Sample Sales document will be created compulsorily with
reference to the Quotation (to track drawing revision, price, etc.) and
will be created in response to the customer purchase order.
o In case the drawing revision level for which order is received now is
different from the Quoted drawing revision level, the part will have to
be re-estimated.
o Estimation will have to visually check (outside SAP) whether the
Quoted drawing and the drawing received at the Order stage tallies. If
it does not tally then the part is re-estimated and taken up with
customer if required.
o The Packing proposal will be maintained in the Direct sale order in
SAP.
o A 100% discount condition type will be used to nullify the values to
make it a FOC Sample order where samples are to be given free.
Proforma Invoice:
o
o

The document number will be auto generated and auto incrementing


from a predefined series.
A Proforma invoice is an invoice document type which will be created
with reference to the Bulk / Blanket order.
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A proforma invoice will be sent to the export customer to facilitate


arrangement of payment and/or Letter of Credit and this will not have
any financial implications in SAP.

Delivery:
o A document type is created for Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Delivery is created with reference to the Direct Sales Order.
o Packing slip will be created from the Delivery. This will contain only
those items, which are mentioned in the Delivery.
Invoice:
o A separate document type is created for Domestic and Export invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o These invoices are created with reference to the respective Delivery
documents.
o The invoice will contain data about the price, taxes and other factors
like freight and insurance as and when applicable.
o For the Export Sales invoice, foreign trade data (like mode of
transport, export customs office, office of exit, office of destination)
needs to be maintained compulsorily.
o Export sales invoice is exempt from Excise and Tax values and hence
these are not passed on to the customer.
Excise Invoice:
o Excise Invoice is created for domestic sales with reference to Tax
invoice or Bill of Sale invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Commercial and excise invoice are printed from SAP and sent to
customer for domestic sample sales.
o For Export sales, Excise invoice is created with reference to Export
sale invoice.
ARE1:
o ARE1 document is created with reference to the Excise invoice for
Export sales.
o The document number will be auto generated and auto incrementing
from a predefined series.
o In case of Export sales the ARE1 is created under Rebate or UT1 and
sent to customer along with packing slip for export sample sales.
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7.17

Warehouse Export Sales

Bulk / Blanket Order


o A separate scheduling agreement document type is maintained at the
Warehouse level for Warehouse Export sales.
o The document number will be auto generated and auto incrementing
from a predefined series.
o As regards uploading of customer schedules into SAP, the
methodology to upload will be decided after consultation with the
customers and the project management team of project Lotus. The
ultimate aim is to upload all schedules from customers into SAP
without any manual intervention provided the formats in which
schedules are received are SAP friendly.(For the inputs on arriving
at Warehouse Stock and Stock in transit please refer Scheduling
scenario at the end of this scenario)
o The PCFC mechanism will be handled in FI module Blueprint.
o MRP will be run at the Warehouse based on the schedules in the
Scheduling agreement maintained at the warehouse.
o The MRP will generate a Purchase Requisition (PR) for required
quantity of material after taking into consideration the stock at
warehouse, stock-in-transit and open STO POs for the material.
o The Purchase Requisitions will be combined in one Stock Transport
Order Purchase Order (STO PO) based on the Customer schedule
lines.
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Delivery:
o A document type is created for Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Delivery document will be created with reference to the STO PO
generated from the Warehouse.
o Packing slip will be created from the Delivery. This will contain only
those items, which are mentioned in the Delivery.
Banker Invoice:
o A customized screen will be created for the Banker invoice. Data from
the STO delivery document will be used to populate the Banker
invoice screen.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Banker invoice will be the basis for creation of Excise invoice,
ARE1 and other export documentation and also to facilitate bill
discounting with the bank.
o Bill Discounting process will be extensively covered in the SAP FI
module Blueprint.
Excise Invoice:
o Export excise invoice will be created with reference to the Banker
Invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o For the excise invoice the values will be statistical and hence not
passed on to the customer (Serves as a reference only)
ARE1 and Export documentation
o ARE1 document will be created with reference to the Export excise
invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The copy of the ARE1 form will be sent to the excise department as
proof of export.
o After clearance, the material is handed over to the freight forwarder
and the shipping bills and ARE1 document will be sent to MPP.

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Goods Receipt at Warehouse:


o The Goods receipt at the warehouse will be manually entered into
SAP upon receipt of the information from the warehouse.
o A document type is created for Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
Delivery to Customer from the Warehouse:
o Information regarding the goods dispatched from the warehouse will
be manually entered into the delivery document upon receipt of the
information from the warehouse.
o A separate document type will be created for Warehouse delivery
creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Warehouse delivery document will contain information about the
items and quantities picked by the customer from the warehouse.
Advance Shipment Notice (ASN) Invoice:
o A separate document type will be created for ASN invoicing.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Invoice will be created with reference to the Warehouse delivery
document.
o This Invoice will have accounting entries automatically generated in
SAP.

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DDP DDU Customer Scheduling (Per day quantity decision)

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7.18

Customer Job Work


Domestic Job Work

International Job Work

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Estimation:
o Estimation stage will be used in this process based on the value of the
order as per the decided SOP.
o The Estimation process will be carried out in SAP Controlling module.
Please refer the SAP Controlling module Blueprint for Estimation
processes.
Quotation:
o A document type will be created for Quotation, which will be used to
maintain data.
o The document number will be auto generated and auto incrementing
from a predefined series.
o A Quotations reference to an Enquiry need not be MANDATORY.
o Quotation will be prepared consisting of details of service, price, tax
and other details.
o The companys terms and conditions accompanying the Quotation will
be maintained as a text item thus allowing modification on a case to
case basis.
o A link between the Quotation and the Drawing revision version will be
maintained through the DMS module in SAP.
o If the Quotation doesnt result in a Sales Order, the reason to be
chosen from a predecided list in the Quotation.
Sales Order Job Work:
o A separate scheduling agreement document type will be created for
Service sales order for Domestic and Export sales process.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Upon receipt of the purchase order from the customer for service, a
Sales Order for Service will be created referencing the quotation.
o Material received from the customer for Service / Job work will be
tracked and accounted in the SAP Material Management module
blueprint.
o The customer schedules will be automatically entered in the Service
sales document in SAP provided they are made available in the
standard Excel or any SAP friendly format.

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Job Work Delivery:


o A separate document type will be created for delivery.
o The Delivery document will be created with reference to the Domestic
and Export Service order schedules.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Packing slip will be created from the Delivery. This will contain only
those items, which are mentioned in the Delivery.
Job Work Invoice:
o A separate document type will be created for Service sales Invoice for
Domestic and Export sales process.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Invoice will be created with reference to the Export and Domestic
Delivery document.

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7.19

Deemed Exports

Enquiry:
o Any Enquiry received from a customer in standard Excel or SAP
friendly format will be automatically uploaded into SAP.
o All Enquiries will compulsorily be booked by KAMs in SAP.
o A document type will be created for Enquiries, which should be used
to enter data.
o The document number will be auto generated and auto incrementing
from a predefined series.
o If Enquiry is out of scope, it will be regretted right away and reason for
regret will be selected from a predefined list maintained in the Enquiry.
o Estimation department will have to run a report to pull up the list of
Enquiries pending Estimation.
o Drawings, norms and Enquiry related data will be linked using the
DMS module.
o Provision to enter only the mandatory header data with an excel sheet
attachment containing all the parts and quantities will be made (for
Aero department).

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Estimation:
o The Estimation process will be carried out in SAP Controlling module.
o Please refer the SAP Controlling module Blueprint for Estimation
processes.
Quotation:
o Quotation will be prepared with reference to the Enquiry and consists
of specifications, MPP part number, price, tax, delivery, validity date
and other details input from the Estimation step.
o A document type will be created for Quotation, which will be used to
maintain data.
o The document number will be auto generated and auto incrementing
from a predefined series.
o If the Quotation doesnt result in a Sales Order, the reason will be
chosen from a predefined set of reasons in the Quotation.
o Provision to revise Quotations if required by customer will be made
either in the same Quotation or by referencing the Original quotation.
o Wherever required the Cost breakdown sheet availed from Estimation
department will be made available to the customer.
o The companys terms and conditions accompanying the Quotation will
be maintained as a text item thus allowing modification on a case to
case basis.
o A link between the Quotation and the Drawing revision version will be
maintained through the DMS module in SAP.
o For Aero customers the Single Line Quote format will be made
available to send to customers by email or fax.
o Wherever necessary tooling cost and the way it will be charged to
customer will be maintained in the Quotation.
o The Quotation output will only be made available in a standard format
and not in customer specific format through SAP.

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Sales Order:
o A separate standard order document type will be created for Sales
order.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Sales document will be created compulsorily with reference to the
Quotation (to track drawing revision, price, etc.) and will be created in
response to the customer purchase order.
o The Packing proposal will be maintained in the sample sale order in
SAP.
Proforma Invoice:
o A separate document type will be created for the Proforma invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Proforma invoice is sent to the customer to facilitate arrangement
of payment.
o The output of the sales order can be taken as a Proforma invoice and
sent to the customer.
o Customer is requested to release the road permit forms/ CT3 forms/
Form H for dispatching items.
Delivery:
o A document type is created for Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Delivery is created with reference to the Sale Order.
o Packing slip will be created from the Delivery. This will contain only
those items, which are mentioned in the Delivery.
Invoice:
o A separate document type is created for Deemed Export invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o This invoice is created with reference to the Delivery document.
o The invoice will contain data about the price, taxes and other factors
like freight and insurance as applicable.
o Deemed Export sales invoice is exempt from Central Excise and
hence these values are not passed on to the customer.

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Excise Invoice:
o Excise Invoice is created with reference to Deemed export invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Excise invoice along with CT3 received from the customer with the PO
is submitted to the Central excise department.
ARE Document:
o AR3A document is created with reference to the Excise invoice of
Deemed Export sale for 100% EOU. In case of Sales to SEZ ARE1
will be created with reference to the Excise invoice of Deemed Export
sale.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The copy of the ARE form is submitted to the Central excise
department.

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7.20

Shipment Tracking Port to port

Shipment Document Creation:


o A Shipment document is created with reference to the Delivery
document.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The transportation planning point and shipment type will be
maintained in the shipment document.
Picking and Goods Issue:
o The picking of relevant goods and the goods issue will be done in the
delivery document.
Shipment handover to Freight forwarder:
o All the goods and relevant documents will be physically handed over
to the Logistics service provider (LSP).
Tracking Schedules in SAP:
o Based on the Dispatch date, route, etc an Estimated schedule is
generated from SAP.
o On receiving the goods and associated documents from MPP the LSP
will release the tentative schedules in the specified format in Excel.
o This will be uploaded into SAP by the marketing personnel.
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o A customization screen will be used to maintain the tentative


schedules and for updating the actual schedules status as and when
they are received (weekly).
o Based on a report the variance between tentative schedules and
actuals will be arrived at. This will be used to check the customer
stock status and a decision on air freight will be made.
o Also the report will enable monitoring of performance of the LSP.

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7.21

Returns Sales Order Processing:


Domestic Sales Returns

Scenario:
o Domestic customer wishes to return some goods that have been sold
to him.
o The reason could be that the product is defective, damaged etc.
o These goods have to be taken back for rework or scrapping decision.
Sales Return Order:
o A separate standard order document type will be created for Domestic
Sales Return order.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Sales Return Orders will be created with reference to the invoice
vide which the goods were sold.
o The order will copy all data from the invoice.

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Inbound Delivery:
o A separate standard order document type will be created for Domestic
Sales Return delivery.
o The document number will be auto generated and auto incrementing
from a predefined series.
o An inbound delivery document is created based on the return sales
order.
o The defective goods will be received and posted to blocked stock in the
rejection storage location.
Excise Invoice Capture:
o The incoming customer excise invoice values will be captured in SAP.
o The document number will be auto generated and auto incrementing
from a predefined series.
Credit Memo Process:
o A separate process is listed for the same at a later part in this
Blueprint.
Replacement Delivery Process:
o A separate process is listed for the same at a later part in this
Blueprint.

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Warehouse Export Sales Returns

Scenario:
o Export customer wishes to return some goods that have been sold to
him because the goods are defective, damaged etc.
o These goods have to be taken back for rework or scrapping decision.
o This scenario can be split into 3 parts namely:
Sorting at customer place,
Rework and sorting at Warehouse and
Scrapping at warehouse or Return defective goods to MPP.
Sorting at customer place:
o The received lot of parts if found defective will be sorted and bad parts
will be quarantined.
o A credit memo equal to the sum of the invoice price of defective parts
and cost of sorting of defective parts will be made out to the customer.

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Sorting and rework at warehouse:


o The quarantined parts will be transported from the customer to the
warehouse and reworked by a third party service provider. The
reworked parts will be further sorted into good and defective parts and
delivered to the warehouse.
o The cost of transportation, rework and sorting will be paid to the third
party service provider through a Service PO.
Scrapping at warehouse or Return defective goods to MPP:
o The quarantined parts will be scrapped at warehouse if the cost of
bringing the defective goods to MPP is far too high.
o If scrapped at warehouse level, the cost of scrapping the goods will be
paid to the warehouse / third party service provider against a Service
PO.
o If however the decision is made to bring the goods back to MPP then
the cost of transportation will be paid to the LSP.

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Direct Export Sales Returns

Scenario:
o Direct export customer wishes to return some goods that have been
sold to him because the goods are defective, damaged etc.
o These goods have to be taken back for rework or scrapping decision.
o This scenario can be split into 3 parts namely:
Sorting at customer place and
Scrapping at warehouse or Return defective goods to MPP.
Sorting at customer place:
o The received lot of parts if found defective will be sorted and bad parts
will be quarantined.
o A credit memo equal to the sum of the invoice price of defective parts
and cost of sorting of defective parts will be made out to the customer.

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Scrapping at customer or Return defective goods to MPP:


o The quarantined parts will be scrapped at customer if the cost of
bringing the defective goods to MPP is far too high.
o If scrapped at customer place, the cost of scrapping the goods will be
paid to the customer.
o If however the decision is made to bring the goods back to MPP then
the cost of transportation will be paid to the LSP.

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7.22

Scrap Sale

Scrap Sales Order


o A separate standard order document type will be created for Scrap
sales process.
o The document number will be auto generated and auto incrementing
from a predefined series.
Delivery:
o A document type is created for Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Delivery is created with reference to the Scrap Sale Order.

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Invoice:
o A separate document type is created for Scrap Sale invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o These invoices are created with reference to the respective Scrap
Sales Delivery documents.
o The invoice will contain data about the price, taxes (TCS 1.33%) and
other factors like freight and insurance as applicable.
Excise Invoice:
o Excise Invoice is created for Scrap sales with reference to Tax invoice
or Bill of Sale invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.

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7.23

Asset Sale

Asset Sales Order


o A separate standard order document type will be created for Asset
sales process.
o The document number will be auto generated and auto incrementing
from a predefined series.
Delivery:
o A document type is created for Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Delivery is created with reference to the Asset Sale Order.
Invoice:
o A separate document type is created for Asset Sale invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o These invoices are created with reference to the respective Asset
Sales Delivery documents.
o The invoice will contain data about the price, taxes and other factors
like freight and insurance as applicable.

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Excise Invoice:
o Excise Invoice is created for Asset sales with reference to Tax invoice
or Bill of Sale invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.

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7.24

DEPB Sale

DEPB Sales Order


o A separate standard order document type will be created for DEPB
sales process.
o The document number will be auto generated and auto incrementing
from a predefined series.
Invoice:
o A separate document type is created for Asset Sale invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
o These invoices are created with reference to the DEPB Sales
document.
o The invoice will contain data about the price and taxes.
Note: For details on DEPB monitoring etc., please refer the Finance
module Business Blueprint.

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7.25

Sales Forecasting

Review and Update Sales Forecast:

o The sales team will plan the sales forecast values outside the SAP
System in an excel spreadsheet.
Upload Sales Quantities for AOP Update:

o The sales quantities will be uploaded into SAP by the Controlling


department using the excel sheet given by the sales.
Review Sales Quantities for AOP Update:

o The uploaded sales quantities will be reviewed by Sales team before


AOP update.
Transferring Sales Quantities to Sales & Operations Planning:

o The final quantities will be used as an input for planning the


Production forecast and hence the raw material requirements etc..

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7.26

Commission Sales:
Commission Agents will have to be defined as the vendors of MPP and
their payments will be cleared by Accounts department. A report will be
used to pull up the pending commission and forwarded to the Accounts
department which will clear the same.

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7.27

Credit Memo Processing

Credit memos will be created in the SD module wherever the material


is involved in the transaction and created with reference to order or
invoice. In case of pure value based notes, the Credit memo will be
created in the Accounts Receivable in FI module.
Credit Memo Request:
o A separate standard order document type will be created for Credit
Memo Request document.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Credit Memo Request will be created with reference to the Sales
Return Document and based on Quality department decision.
o The Credit Memo Request document will be blocked for billing and will
have to be released by Finance department.
Credit Memo:
o A separate billing document type will be created for Credit Memo
document.
o The document number will be auto generated and auto incrementing
from a predefined series.

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7.28

Supplementary Billing

Supplementary Billing Request:


o A separate standard order document type will be created for
Supplementary Billing Request document.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Supplementary Billing Request will be created with reference to
the Sales Invoice.
o An order reason will have to be maintained for Supplementary Billing
Request document.
Supplementary Invoice:
o A separate billing document type will be created for Supplementary
Billing document.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Supplementary Billing document will be created with reference to
the Supplementary Billing Request document.
Excise Invoice:
o The Excise invoice will be created with reference to the Supplementary
Billing document.
o The document number will be auto generated and auto incrementing
from a predefined series.

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7.29

Replacement Sales Order Processing

Replacement Sales Order


o A separate standard order document type will be created for
Replacement sales order process both for domestic as well as export.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The Sales order will be blocked for Delivery and the block will be
removed by Finance Department.
o A 100% discount condition type will be made available for handling
Free-of-charge Replacement orders.
Delivery:
o A separate document type is created for Domestic as well as Export
Replacement Delivery creation.
o The document number will be auto generated and auto incrementing
from a predefined series.
o Delivery is created with reference to the Replacement Order for both
Domestic and Export scenario.
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Invoice:
o A separate document type is created for Replacement Invoice for both
Domestic and Export Scenario.
o The document number will be auto generated and auto incrementing
from a predefined series.
o These invoices are created with reference to the respective Domestic
and Export Replacement Delivery documents.
o The invoice will contain data about the price, taxes and other factors
like freight and insurance as applicable.
Excise Invoice:
o Excise Invoice is created with reference to both the domestic and
export Replacement Invoice.
o The document number will be auto generated and auto incrementing
from a predefined series.
ARE1 and Export documentation
o ARE1 document will be created with reference to the Export excise
invoice of Replacement Sales.
o The document number will be auto generated and auto incrementing
from a predefined series.
o The copy of the ARE1 form will be sent to the excise department as
proof of export.
o After clearance, the material is handed over to the freight forwarder
and the shipping bills and ARE1 document will be sent to MPP.

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8.0 Tentative List of Forms


Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

Object Description
Adv Lic - Appln - Ann-I - Export
Adv Lic - Appln - Ann-I - Export
Adv Lic - Appln - Ann-II - Imports
Adv Lic - Appln - App-11A
Adv Lic - Appln - App-11A - Annexure-III
Adv Lic - Appln - App-11A - Annexure-IV
Adv Lic - Appln - ANF-4A
Adv Lic - EODC Appln - ANF-4F
Adv Lic - EODC Appln - ANF-4F - Annexure-IA
Adv Lic - EODC Appln - ANF-4F - Annexure-IB
Adv Lic - EODC Appln - ANF-4F - Annexure-II
Adv Lic - EODC Appln - ANF-4F - Annexure-III
Adv Lic - MPP Invoice (Banker)
Adv Lic - Tech flow chart - Wastage - Operation-wise
Adv Lic - Unutilised RM duty details - Annexure-III
Aero Divn - Front page
Agency Commission Appln Form to Bank - Statement
Bank covering letter for documents negotiation - Canara
Bank, Ing Vysya & HSBC
Bank Realisation Certificate - Appedix - 22
Bill of Exchange
DEPB - Appln - ANF-4G - Annexure - Excel
DEPB - Appln - ANF-4G - Appln form - Word
DEPB - Tax invoice
DEPB - Transfer letter
Enq - Request for Estimation form
EPCG - 11C - List of imports of CG
EPCG - Appln - ANF-5A
EPCG - Appln - Annexure-II
EPCG - Appln format
EPCG Annexure-II - Appendix - 9
EPCG EODC application - ANF-5B
Excise - Annexure - 19
Excise - Annexure - 63
Excise - Annexure - VI Subsidiary challans
Excise - AR3A
Excise - ARE1 with enclosure
Excise - Bill of Sale Invoice abatement
Excise - ER1 Returns
Excise - Export Invoice with Enclosure
Excise - Export Invoice without Enclosure
Excise - Job work invoice
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43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

Excise - Rebate Application - Form R


Excise - Stock Transfer invoice
Excise - Supplementary invoice with work sheet
Excise - Tax invoice, RM, Scrap, Amortized cost & FG inv
Export - Advance Cargo Declaration Format
Export - DEPB Declaration
Export - Self Declaration Format (SDF form)
Export Invoice
Export Packing List
Export Shipper Booking request letter
Export Supplementary Invoice
Exports - Certificate of Origin - GSP
Export Value Declaration
Export Shipping Instruction
Free of Charge Invoice
Packing Slip from FQA
Proforma Invoice format - AERO
Proforma Invoice format - AUTO
Rejected material write-off format WH level
Sales Order - DDP Customers
Sales Quote
Sales Quote monitoring report
Sales Quote revision
Sample Development Order format
Single Line Quote - Aero

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9.0 Tentative List of Reports


Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Object Description
Adv Lic - Appln - Value Addition sheet
Adv Lic - EODC Appln - EO Monitoring form
Adv Lic - Summary of Adv Lic
Adv Lic Or DEPB comparison/decision - formula
Aero - Pending Enquiry Report
Air freight (Premium freight) incurred details
Air freight alert to plant
Budget monitoring report - partwise/customerwise/unitwise,
etc
Budget Monitoring Sheet - Summary -Excel
Customer Complaints Reports - unitwise, customer-wise
Customer list - Active - Complete master is required
Delivery Performance monitoring -excel
DEPB details monitoring sheet - Excel
DEPB rate revision - excel sheet
Despatch Plan - Deutz - Excel sheet
ECGC Quarterly Returns
EEPC Monthly Returns
Enquiry Analysis
EPCG - Ann-I to CE Certificate
EPCG - Appln - Duty saved / Value addition Calculation
sheet -excel
EPCG - List of EPCG already obtained till date
EPCG Licence summary
EPCG Monitoring
Excise - Annexure-V Register
Excise - ER7, ER4, ER5 & ER6 Yearly returns
Excise - Pending challan monitoring report
Excise - Rebate Monitoring report
Excise - RG1 Register
Excise - ST3 Service Tax Half Yearly returns
Excise - Statement of Carriage Inward/Outward
Exports - GSP Monitoring report
Freight rate comparison & approval of service providers' bills
as per finalised quote
Insurance premium monitoring sheet - Marine - Tata AIG
MIS - Excise provision details to Finance
MIS - Excise revenue details to Finance
MIS - Monthly Provision details to Finance
MIS - Order postion report
MIS - Sales Turnover - Cumulative report
MIS - Sales Turnover - Monthly report
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42
43
44
45
46
47
48
49
50
51
52
53
54
55

OCE Monitoring Report


Payment follow up - Open/Paid invoices - BT
Payment follow up - Open/Paid invoices - Eaton TCPD
Payment monitoring sheet / report - all customers
Quality costs monitoring - excel sheet
Sample status report
Shipment details in CIS (report)
Shipment Monitoring report
Shipping documents monitoring
Warehouse & Transit stock monitoring report - details
Warehouse & Transit stock monitoring report - Summary
Warehouse Cost monitoring Report
Warehouse Invoice (ASN) - BT
Warehouse Invoice (ASN) - Eaton Reynosa
Warehouse Invoice (ASN) - Eaton TCPD
Warehouse Invoice (ASN) - RVI

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10.0 Authorizations
Changes in Business Process :
Maintenance of Master Data
:
Daily Transactions
:

Process Owner
Key User
End user

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