SAP Sales & Distribution

(SD)
Business Blueprint for Kamaljeet Singh
Ahluwalia Group
[Version: 2.0]

DCC Services Pvt. Ltd.

1|Page SAP SD Business Blueprint
Table of Contents

1. Overview ......................................................................................................................................... 3
2. Organizational Structure ..................................................................................................................... 5
3. Sales Organization structure ............................................................................................................... 7
4. Master Data ...................................................................................................................................... 12
4.1. Customer Master ....................................................................................................................... 12
4.2. Material Master ......................................................................................................................... 14
4.3. Pricing Master ............................................................................................................................ 14
5. List of Sales Processes along with Salient features: .......................................................................... 16
6. To Be Process: Sales process mapping in SAP .................................................................................. 17
6.1. Domestic Sale: Process KGSD001............................................................................................... 17
6.2. Export Sale (indirect): Process KGSD002 ................................................................................... 19
6.3. Export Sale (direct): Process KGSD003 ...................................................................................... 21
6.4. Return: Process KGSD004 .......................................................................................................... 23
6.5. Debit Memo: Process KGSD005 ................................................................................................. 25
6.6. Credit Memo: Process KGSD006 ................................................................................................ 26
7. Advance/Commission ....................................................................................................................... 27
8. T-codes .............................................................................................................................................. 27
9. Enhancements/Z-Reports/Output .................................................................................................... 28
10. Sign-off ............................................................................................................................................ 29

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 1. Overview

“KJS AHLUWALIA GROUP” has been promoted under the leadership

of Shri. Kamaljeet Singh Ahluwalia, Shri. Pawan Kumar Ahluwalia and Shri
Prashant Ahluwalia. KJS Ahluwalia Group initially started with Iron ore &
Manganese operations and thereafter diversified to Iron & Steel Plant,
Power Plant, Cement Plant, Logistic & Transportation and also playing a
vital role in Media (Sadhna News channel). Shri Jagannath Steels & Power
Ltd, an Integrated Steel Plant with a Facility to Produce Primary Steel from
Iron Ore uses State of Art Technology.

For KJS Ahluwalia Group, our present SAP work-folio includes:

 K.J.S. Ahluwalia Steel & Power Division [referred further as KJSA]

 Shri Jagannath Steels & Power Ltd. [referred further as SJSP]

Application to be used:

SAP S/4 HANA 1709

Related Data:

 Finished Goods: 10-12 (approx.)

 Customers : KJSA - 200 (approx.)
 SJSP - 50 (approx.)

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 Major Products:

 Sponge Iron

 Lumps
o Grade A
o Grade B

 Fines
o Grade A
o Grade B
o -1 mm

 Charcoal

 Billet

 Standard
 Defective

 Pellet

 Standard
 Defective

 Fly-ash Brick

 Power

Process (AS-IS):

 Customer requirements are received at office, who, in turn, inform plant to initiate
sales processing (with/without quotation)
 Sales orders are raised, based on respective customer’s purchase orders
 Customer is asked to arrange for transportation of the same, wherein vehicle, as
arranged by the concerned customer, reaches plant premise
 From plant arrangement for delivery is done and materials are loaded onto the
ship (primarily truck)
 Materials are carried to the vehicle and loaded using JCB/GSB bucket
 Post goods issue, customer is invoiced
 Materials are sold at manually-entered price, based on that day’s market value
(which keeps changing) and as per negotiation
 No discount structure is in place
 No documented commissioning is there in customer pricing
 Presently domestic sales occurs; however, indirect export happens through
domestic brokers, who, in turn, act as customers; direct export is also done
sometimes
 GST rates applicable

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2. Organizational Structure

Introduction
Organizational units are used to structure business functions and for
reporting. The organizational units of Financial Accounting are used for
external reporting purposes, that is, they fulfil requirements that your
business is subject to from external parties, for example, legal regulations.
The financial statements for example, are created based on the
organizational units of Financial Accounting.

Company Code
Smallest organizational unit of external accounting for which a complete,
self-contained set of accounts can be created. This includes the entry of all
transactions that must be posted and the creation of all items for legal
individual financial statements, such as the balance sheet and the profit
and loss statement.

Every Company Code definition has the following:

 Currency – The reporting currency of the company code. In case of KJSA/SJSP,

it will be INR.

 Language – The language for Display of texts, printouts. In case of KJSA/SJSP,
it will be EN (English)


 Country – The Country determines the time zone, postal code,

system defaults for Global settings, etc. In case of KJSA/SJSP, it
will be IN (India)

The definition of the company code organizational unit is obligatory. Following are the
Company Codes to be created by FI module:–

Company Code Description

KJSP KJSA Steel and Power division

SJSP Shri Jagannath Steels and Power limited

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 Plant
A Plant is a division of a company for which one can create financial
statements for internal/external reporting. Plants are defined at the Client
Level. A profit centre on the other hand is an organizational unit in
accounting that reflects a management-oriented structure of the
organization for the purpose of internal control. It allows to analyse areas
of responsibility and to delegate responsibility to decentralized units. In
case of KJSA/SJSP, the following Plants would be maintained by MM
module:-

Plant Description Company Code

KJ01 KJSP Delivering Plant KJSP

SJ01 SJSP Delivering Plant SJSP

KJSA Group
Controlling Area (KJSG)

KJSA CC SJSP CC
Company Codes (KJSP) (SJSP)

KJSA Plant SJSP Plant

Plant
(KJ01) (SJ01)

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3. Sales Organization structure

Sales Organization:

Concept: The legal selling unit responsible for negotiating the terms
of a sale, product liability, and resolving customer complaints.
Often represents a regional subdivision of a market. It is assigned
to only one company code.

Validation: For KJSA/SJSP, a single sales organization per company code has been
identified.

Distribution Channel:

Concept: Represents the method to market. It is assigned to sales organization.

Validation: In case of KJSA/SJSP, 2 distribution channels are identified,

namely Domestic and Export, so as to fit in requirements of the
customers. Moreover reports can be easily derived at distribution channel
level as well.

Division:

Concept: Represents a product line. It is assigned to sales organizations.

Validation: Different product lines have been considered as divisions.

Reports can be drawn at the level of division. The divisions identified are
– Sponge Iron, Billet, Fly-ash Brick, Power, Pellet and Charcoal.

Sales Area:

Concept: A combination of Sales Organization, Distribution Channel

and Division. It determines which materials are sold through which
sales organization, distribution channel and division combination.
Sales analysis can be done based on sales area.

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 KJSA CC SJSP CC
Company Code
(KJSP) (SJSP)

Sales KJSA SO SJSP SO

Organization (KJS1) (SJS1)

Distribution
Domestic Export
Channel
(D1) (E1)

Division
Sponge Iron (SI)

Billet (BI)

Fly-ash Brick (BR)

Power (PW)

Pellet (PE)

Charcoal (CH)

List of all Sales Areas to be set up in system under KJSA/SJSP

Sales Org Dist.

Sales Org Description Channel Distribution Channel Division Division Description

Code Description

KJSA Sales Areas

KJS1 KJSA Sales Org D1 Domest Distribtn Chl SI Sponge Iron

KJS1 KJSA Sales Org D1 Domest Distribtn Chl BI Billet

KJS1 KJSA Sales Org D1 Domest Distribtn Chl BR Fly-ash Brick

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 KJS1 KJSA Sales Org D1 Domest Distribtn Chl PW Power

KJS1 KJSA Sales Org D1 Domest Distribtn Chl CH Charcoal

KJS1 KJSA Sales Org E1 Export Distribtn Chl SI Sponge Iron

KJS1 KJSA Sales Org E1 Export Distribtn Chl BI Billet

KJS1 KJSA Sales Org E1 Export Distribtn Chl BR Fly-ash Brick

KJS1 KJSA Sales Org E1 Export Distribtn Chl PW Power

KJS1 KJSA Sales Org E1 Export Distribtn Chl CH Charcoal

SJSP Sales Areas

SJS1 SJSP Sales Org D1 Domest Distribtn Chl SI Sponge Iron

SJS1 SJSP Sales Org D1 Domest Distribtn Chl BI Billet

SJS1 SJSP Sales Org D1 Domest Distribtn Chl BR Fly-ash Brick

SJS1 SJSP Sales Org D1 Domest Distribtn Chl PW Power

SJS1 SJSP Sales Org D1 Domest Distribtn Chl PE Pellet

SJS1 SJSP Sales Org D1 Domest Distribtn Chl CH Charcoal

SJS1 SJSP Sales Org E1 Export Distribtn Chl SI Sponge Iron

SJS1 SJSP Sales Org E1 Export Distribtn Chl BI Billet

SJS1 SJSP Sales Org E1 Export Distribtn Chl BR Fly-ash Brick

SJS1 SJSP Sales Org E1 Export Distribtn Chl PW Power

SJS1 SJSP Sales Org E1 Export Distribtn Chl PE Pellet

SJS1 SJSP Sales Org E1 Export Distribtn Chl CH Charcoal

Sales Office:

Concept: Represents geographical aspects of the organization in business and sales.

Sales office is assigned with sales area.

Validation: One sales office per sales organization has been considered.

Sales Office Description Code

KJSA Sales Office KJO1

SJSP Sales Office SJO1

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Sales Group:

Concept: Group of persons responsible for Sales support and Sales in a

specific task area such as customer circle, product and region.

Validation: One logical sales group per sales office may be created and assigned to
sales office.

Sales Group Description Code

KJSA Sales Group KJG

SJSP Sales Group SJG

Shipping Point:

Concept: It is a fixed location responsible for scheduling and processing deliveries to

customers, as well as replenishment.

Validation: One Shipping point per plant is proposed here.

Shipping Point Description Code

KJSA Shipping point KJ01

SJSP Shipping point SJ01

Different Types of Sales

Presently Sale is categorized broadly under 2 different heads depending on the type
of trade, as illustrated below.

Type of Sale – Domestic Type of Sale – Export

Domestic Sale Indirect Export

Return Direct Export

Debit Memo Debit Memo

Credit Memo Credit Memo

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Following Document /Order types in SAP may be proposed here:-

Type of Sale Document / Order types Likely Number Range

Domestic Sale ZDO 0000000001 – 0004999999 (internal)

Indirect Export ZEI 0070000000 – 0074999999 (internal)

Direct Export ZED 0090000000 – 0094999999 (internal)

Return ZRE 0060000000 – 0064999999 (internal)

Debit Memo ZDR 0030000000 – 0034999999 (internal)

Credit Memo ZCR 0040000000 – 0044999999 (internal)

Inquiry ZIN 0050000000 – 0054999999 (internal)

Quotation ZQT 0020000000 – 0024999999 (internal)

Order Types
Sales Domestic Export Debit Credit
Org Sale Inquiry Quotation Return Sale Memo Memo
KJSA Types Order

ZEI ZDR ZCR

KJS1 ZDO ZIN ZQT ZRE
ZED ZDR ZCR

SJSP Types Order

ZEI ZDR ZCR

SJS1 ZDO ZIN ZQT ZRE
ZED ZDR ZCR

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4. Master Data

4.1. Customer Master

Gap/

Master Process Descriptions Remarks

The customer master data is to ensure that all the necessary details about the
Customer customer are captured to facilitate smooth transactions pertaining to sales and
Master distribution avoiding data redundancy and data inaccuracy. No

The master data also ensures that necessary information/data needed to be

passed on to the other modules is captured.

Customer master will be created as per the data provided by the marketing team
in the specified format supplied by DCC.

Customer Master creation and maintenance is part of FI module,

however SD ensures that for all customers sales-related parameters are
maintained.

The business partner master data is to ensure that all the necessary details about
the business partner are captured to facilitate smooth transactions avoiding data
redundancy and data inaccuracy. Business partner creation is obligatory in SAP
HANA environment. A business partner role is used to classify a business
partner in business terms. The roles assigned to a business partner reflect the
functions it has and the business transactions in which it is likely to be involved.

Business Business partner master will be created as per the data provided by the
Partner marketing team in the specified format supplied by DCC. No

Business Partner creation and maintenance is part of FI module.

For every customer, following partner functions will be maintained: –

 SOLD-TO-PARTY - A person or company that places an order for goods

or services.
 SHIP-TO-PARTY - A person or company that receives goods. The ship-
to- party may not necessarily be the sold-to-party, the bill-to-party, or the
payer.
Partner  BILL–TO-PARTY - A person or company that receives the invoice for a
Function delivery or service. The bill-to-party may not necessarily be the payer of No
the bill.

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  PAYER - A person or company that pays the bill. The payer may not
necessarily be the bill-to-party.

In general, the above-mentioned first 4 partner functions refer to only one

customer. In cases where ship-to-party and / or bill-to-party and/or payer are
varying for a sold-to party then separate master record needs to be created and
then assigned to that sold-to-party.

At the time of sales order creation, system will prompt the user to choose the
required ship-to-party and/or bill-to party and/or payer from the available list if
any of these partner functions is maintained more than once in the sold-to party.

Customer Account group controls what fields are relevant for data input .It also
controls the various partner determination which defaults in sales order. The
number ranges are associated with the account groups. Also as a practice the
customer reconciliation account is made same for the same account group.

5 account groups with the number range may be proposed, as follows:-

Customer Type Account Group Number Range Number Range

Domestic DO01 1000001-1099999
Export (indirect) EX01 2000001-2099999
Export (direct) EX02 3000001-3099999
Broker BR01 4000001-4099999
Others OT01 5000001-5099999

It is worth mentioning that it would be easy for maintenance and would also be
helpful for KJSA/SJSP if the number of account groups is limited. Based on our
study we are suggesting 5 Account groups , one for ‘Domestic Customers’, one
for ‘Export (indirect) Customers’, one for ‘Export (direct) Customers’,
one for ‘Brokers’ and one for ‘Others’ (as a buffer).
Customer
Account Customer Account Group creation and maintenance is part of FI
Group module. No

Customer
Group may
not be
applicable
in the
It is a grouping of customers based on some rationale or requirement for the present
purpose of pricing or general statistics. One can define customer groups business
according to the needs of the organization. One can assign a customer group to an scenario, as
individual customer in either the customer master record of the sold-to party or no
in the sales document. In SD Customizing, one can create a condition type that distinction
lets creation of pricing records for customer groups. Additionally, when one amongst
wants to generate sales statistics, customer group can be used as one of the customers is
selection criteria. there, with
all treated
Following customer groups may be proposed:-
as equal
Customer Customer Groups Group name [however,
Group Private PC01 it’s for
Brokers BC01 future

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 reference]

4.2. Material Master

Gap/

Master Process Descriptions Remarks

Sales and distribution data in a material master record is defined for a

specific sales organization and distribution channel. The delivering plant, the
assignment to the sales group, grouping terms for price agreements and sales
texts, for example, are included in sales and distribution data. The fact that a
material is linked to a distribution channel allows the material to be sold with
different conditions through the various distribution channels. Sales and
Material distribution data is divided into data that depends on the sales organization –
Master Sales View and data that depends on the plant. No

Material master will be created as per the data provided by the marketing team
in the specified format supplied by DCC.

Material Master creation and maintenance is part of MM Module,

however SD ensures that for any material that is to be sold, the Sales views are
maintained.

Material
Views to
Basic Data1, Sales: Sales Org. Data 1, Sales: Sales Org. Data 2, Sales: General
be
Plant Data, Plant Data Storage1, Accounting1
maintain
ed for (If an alternative unit is maintained for the material, a specific conversion rate
Finished has to be maintained. This is because system converts all the quantities entered
Goods in alternative units into the Base Unit. So all the inventory related reports
[SD generally come in the Base Unit of Measure)
perspecti
ve] -Tax related indicator has to be maintained. No

Material Master creation and maintenance is part of MM Module.

4.3. Pricing Master

The term pricing is used broadly to describe the calculation of prices (for external use by
customers) and costs (for internal purposes, such as cost accounting). Conditions represent a

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set of circumstances that apply when a price is calculated. For example, a particular
customer orders certain quantity of a particular product on a certain day. The variable
factors here - the customer, the product, the order quantity, and the date - determine the
final price the customer gets. The information about each of these factors can be stored in
the system as master data. This master data is stored in the form of condition records. The
condition technique refers to the method by which the system determines prices from
information stored in condition records.

Following pricing components may be used as condition types while creating a sales order.

[N.B.: Based on KJSA/SJSP’s specific need, the major pricing components would be for
manual entries (not auto-determined through condition technique)]

 Price
 Discount/Surcharge
 Insurance
 GST
 Freight
 Carriage Outward freight

Requirement of pricing is to enter the right price for a given condition at the time of sales
transaction. The other statutory requirements like GST should be automatically calculated by
the system to minimize the error while posting those values in the respective GL accounts.
Pricing should provide the scope of discount applicability for a customer, freight inclusion
after tax etc. Pricing should provide flexibility of changing the price in sales order before
finalization of deals with the customer. Sales order pricing should also be able to
comprehensively capture all price components to arrive at the net order contribution. A
sample pricing procedure is shown, below.

GST will be picked up through tax code. Based on the location of

supplying plant and ship-to party, Customer tax classification and
Material tax classification appropriate tax code will be picked up. If
both delivering plant and Customer Ship to party locations are
within a state, SGST+CGST will be applicable. If both the locations
are in different states, IGST will be applicable. This determination
is based on Control Code.

Tax classification will be maintained in the customer and material master

records.

Following pricing procedures may be defined for KJSA/SJSP:-

 Domestic Sales from Plant: ZINDOP

 Export Indirect Sale from Plant: ZINEIP
 Export Direct Sale from Plant: ZINEDP

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 A Sample structure of pricing procedure:-

Step Condition Description

10 PB00 (stnd.) Basic price

100 RC00 (stnd.) Quantity Discount

150 JINS (stnd.) IN Insurance

200 Base Price

Carriage Outward
205 ZD00 Freight

207 Sub-total

210 JOSG (stnd.) SGST

220 JOCG (stnd.) CGST

230 JOIG (stnd.) IGST

240 JOUG (stnd.) UGST

300 Net (Base+ Tax)

400 HD00 (stnd.) Freight

600 Total value

700 VPRS Internal Price

720 Profit Margin

[N.B.: PB00, RC00, ZD00, HD00, JINS are manual conditions, while others are auto-determined]

5. List of Sales Processes along with Salient

features:

Process Process Inquiry Quotation Sales Delivery Invoice GST FI

No. Description Order Document Posting Posting
KGSD001 Domestic Sale Yes Yes Yes Yes Yes Yes Yes
KGSD002 Export Sale Yes Yes Yes Yes Yes Yes Yes
(indirect)
KGSD003 Export Sale Yes Yes Yes Yes Yes No Yes
(direct)
KGSD004 Return - - Yes Yes Yes Yes Yes
KGSD005 Debit Memo - - Yes No Yes Yes Yes
KGSD006 Credit Memo - - Yes No Yes Yes Yes

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6. To Be Process: Sales process mapping in SAP

6.1. Domestic Sale: Process KGSD001

To Be Process:

SAP Sale capturing Process description Custom/Standard

Transaction Code
Document
Inquiry The customer enquires about a purchase to be made by him. The sales Standard  VA11
area that accepts the inquiry becomes responsible for further (optional process)
processing. A customer enquiry comprises one or more items that
contain the quantity of a material that the customer asked for. The
total quantity of an inquiry item can be subdivided between the
schedule lines in different amounts and relevant delivery dates. The
details provided are material, quantity, inco-terms, payment terms,
dates etc. An inquiry of type ZIN may be keyed into the system with
proper customer details, material code, quantity, Date, valid till, etc.
Rates sought by the customer are also captured in the inquiry
document.
Quotation Once the customer’s query (SAP doc type ZIN) is raised, the rates to Standard  VA21
be quoted to the customer are decided by the KJSA/SJSP sales team. (optional process)
The rates are then captured in the SAP quotation document type ZQT
(created in reference to the inquiry ZIN) along with the validity dates.
Advance Once the sale is confirmed verbally by the customer, he is asked to Standard  F-29
/LC make the payment. The advance payment details are captured in this and VX11n for LC
screen. (optional process)
This step would be handled by FI Module.
Sales A sales order of type ZDO (Domestic Sale) is created with/without Standard  VA01
Order reference to the quotation type ZQT (in case the same is available).
During sales order processing, the system carries out monitoring
the sales transactions, checking for availability, transferring
requirements to materials planning (MRP), scheduling the
delivery etc.
Delivery Outbound delivery supports shipping activities, like picking, packing Standard
Document and goods issue. Several delivery documents (type ZLF) may be VL01n
created referring the sales order (one for each shipment carrying out And
the goods outside the plant). Manual capturing of the truck, through VL02n
which the goods would be delivered, may be done at line level. Picking
may be done manually in the delivery document. Once the “Post
Goods Issue” button is clicked, the plant stock goes down by the
delivery quantity. A material document captures the stock movement.
Also an auto account posting happens, adjusting the Change-in-stock
and Final-stock G/Ls.
Customer The invoice (type ZDO) is created referring to the del doc. Billing Standard VF01
Invoice invoices are created against sales orders issued for products shipped,
credit and debit memos. Deliveries, which are carried out on the basis
of sales orders, are invoiced to the customer. All the relevant details
like customer, sales org, material, quantity, pricing terms etc. are
copied into the invoice automatically, and saved. The basic price, GST
components are posted to pre-designated G/L accounts.
Accounting The accounting documents are automatically posted, and the same Standard (auto)
Document can be viewed (if required) to see the G/L account postings. FB03

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 Invoice After the invoice gets posted and accounting document gets created Custom Format
Printout successfully, printouts can be taken. VF03

Pre-requisites for the sales process are as follows:

 Customer master should be maintained in system

 Master of the saleable material, e.g., Finished Goods should be maintained in the
system
 GST condition rates should be maintained in the system

Process Flow:

Master Data

Domestic Sale Customer Material GST Output

(Process: KGSD001) Master Master Record Record

Customer Gate Entry of

Advance Pay Truck in Plant

Delivery (with
Inquiry Quotation Sales Order (with/without
manual
(optional) (optional) reference to quotation)
picking)

Gate Exit of Truck Post Goods

Print Invoice Invoice
from Plant Issue

Colour Legends: Standard Object Custom Object Physical Event

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6.2. Export Sale (indirect): Process KGSD002

To Be Process:

SAP Sale capturing process description Custom/Standard

transaction code
Document
Inquiry The customer enquires about a purchase to be made by him. The sales Standard  VA11
area that accepts the inquiry becomes responsible for further (optional process)
processing. A customer enquiry comprises one or more items that
contain the quantity of a material that the customer asked for. The
total quantity of an inquiry item can be subdivided between the
schedule lines in different amounts and relevant delivery dates. The
details provided are material, quantity, inco-terms, payment terms,
dates etc. An inquiry of type ZIN may be keyed into the system with
proper customer details, material code, quantity, Date, valid till, etc.
Rates sought by the customer are also captured in the inquiry
document.
Quotation Once the customer’s query (SAP doc type ZIN) is raised, the rates to Standard  VA21
be quoted to the customer are decided by the KJSA/SJSP sales team. (optional process)
The rates are then captured in the SAP quotation document type ZQT
(created in reference to the inquiry ZIN) along with the validity dates.
Advance Once the sale is confirmed verbally by the customer, he is asked to Standard  F-29
/LC make the payment. The advance payment details are captured in this and VX11n for LC
screen. (optional process)
This step is handled by FI Module.
Sales A sales order of type ZEI (Export Sale) is created with/without Standard  VA01
Order reference to the quotation type ZQT (in case the same is available).
During sales order processing, the system carries out monitoring
the sales transactions, checking for availability, transferring
requirements to materials planning (MRP), scheduling the
delivery etc.
Delivery Outbound delivery supports shipping activities, like picking, packing Standard
Document and goods issue. Several delivery documents (type ZLF) may be VL01n
created referring the sales order (one for each shipment carrying out And
the goods outside the plant). Manual capturing of the truck, through VL02n
which the goods would be delivered, may be done at line level. Picking
may be done manually in the delivery document. Once the “Post
Goods Issue” button is clicked, the plant stock goes down by the
delivery quantity. A material document captures the stock movement.
Also an auto account posting happens, adjusting the Change-in-stock
and Final-stock G/Ls.
Customer The invoice (type ZEI) is created referring to the del doc. Billing Standard VF01
Invoice invoices are created against sales orders issued for products shipped,
credit and debit memos. Deliveries, which are carried out on the basis
of sales orders, are invoiced to the customer. All the relevant details
like customer, sales org, material, quantity, pricing terms etc. are
copied into the invoice automatically, and saved. The basic price, GST
components are posted to pre-designated G/L accounts.
Accounting The accounting documents are automatically posted, and the same Standard (auto)
Document can be viewed (if required) to see the G/L account postings. FB03
Invoice After the invoice gets posted and accounting document gets created Custom Format
Printout successfully, printouts can be taken. VF03

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 Pre-requisites for the sales process are as follows:

 Customer master should be maintained in system

 Master of the saleable material, e.g., Finished Goods should be maintained in the
system
 GST condition rates should be maintained in the system

Process Flow:

Master Data

Export Indirect Sale Customer Material GST Output

(Process: KGSD002) Master Master Record Record

Customer Gate Entry of

Advance Pay Truck in Plant

Delivery (with
Inquiry Quotation Sales Order (with/without
manual
(optional) (optional) reference to quotation)
picking)

Gate Exit of Truck Post Goods

Print Invoice Invoice
from Plant Issue

Colour Legends: Standard Object Custom Object Physical Event

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6.3. Export Sale (direct): Process KGSD003

To Be Process:

SAP Sale capturing process description Custom/Standard

transaction code
Document
Inquiry The customer enquires about a purchase to be made by him. The sales Standard  VA11
area that accepts the inquiry becomes responsible for further (optional process)
processing. A customer enquiry comprises one or more items that
contain the quantity of a material that the customer asked for. The
total quantity of an inquiry item can be subdivided between the
schedule lines in different amounts and relevant delivery dates. The
details provided are material, quantity, inco-terms, payment terms,
dates etc. An inquiry of type ZIN may be keyed into the system with
proper customer details, material code, quantity, Date, valid till, etc.
Rates sought by the customer are also captured in the inquiry
document.
Quotation Once the customer’s query (SAP doc type ZIN) is raised, the rates to Standard  VA21
be quoted to the customer are decided by the KJSA/SJSP sales team. (optional process)
The rates are then captured in the SAP quotation document type ZQT
(created in reference to the inquiry ZIN) along with the validity dates.
Advance Once the sale is confirmed verbally by the customer, he is asked to Standard  F-29
/LC make the payment. The advance payment details are captured in this and VX11n for LC
screen. (optional process)
This step is handled by FI Module.
Sales A sales order of type ZED (Export Sale) is created with/without Standard  VA01
Order reference to the quotation type ZQT (in case the same is available).
During sales order processing, the system carries out monitoring
the sales transactions, checking for availability, transferring
requirements to materials planning (MRP), scheduling the
delivery etc.
Delivery Outbound delivery supports shipping activities, like picking, packing Standard
Document and goods issue. Several delivery documents (type ZLF) may be VL01n
created referring the sales order (one for each shipment carrying out And
the goods outside the plant). Manual capturing of the truck, through VL02n
which the goods would be delivered, may be done at line level. Picking
may be done manually in the delivery document. Once the “Post
Goods Issue” button is clicked, the plant stock goes down by the
delivery quantity. A material document captures the stock movement.
Also an auto account posting happens, adjusting the Change-in-stock
and Final-stock G/Ls.
Customer The invoice (type ZED) is created referring to the del doc. Billing Standard VF01
Invoice invoices are created against sales orders issued for products shipped,
credit and debit memos. Deliveries, which are carried out on the basis
of sales orders, are invoiced to the customer. All the relevant details
like customer, sales org, material, quantity, pricing terms etc. are
copied into the invoice automatically, and saved. The basic price, GST
components are posted to pre-designated G/L accounts.
Accounting The accounting documents are automatically posted, and the same Standard (auto)
Document can be viewed (if required) to see the G/L account postings. FB03
Invoice After the invoice gets posted and accounting document gets created Custom Format

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 Printout successfully, printouts can be taken. VF03

Pre-requisites for the sales process are as follows:

 Customer master should be maintained in system

 Master of the saleable material, e.g., Finished Goods should be maintained in the
system

Process Flow:

Master Data

Export Direct Sale Customer Material Output

(Process: KGSD003) Master Master Record

Customer Gate Entry of

Advance Pay Truck in Plant

Delivery (with
Inquiry Quotation Sales Order (with/without
manual
(optional) (optional) reference to quotation)
picking)

Gate Exit of Truck Post Goods

Print Invoice Invoice
from Plant Issue

Colour Legends: Standard Object Custom Object Physical Event

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6.4. Return: Process KGSD004

To Be Process:

SAP Sale capturing process description Custom/Standard

transaction code
Document
Sales Returns document are created when the customer wants to return Standard  VA01
Order damaged goods or goods that were delivered to customer. The returns
document can be created with or without reference to the sales order.
When the returned goods arrive back at company’s plant, sales office
is then expected to create a returns delivery, which refers to the
returns order document already created. The goods issue posted for
the returns delivery records the inward movement of the goods into
company’s own stock. A sales order of type ZRE (Return Sales Order)
may be created in reference to the sales order/invoice. The same is
created by referring an invoice.
Delivery Return delivery document (type ZLR) may be created, referring the Standard
Document sales order. Once the “Post Goods Receipt” button is clicked, the plant VL01n
stock goes up by the return quantity. A material document captures And
the stock movement. Also an auto account posting happens, adjusting VL02n
the Change-in-stock and Final-stock G/Ls.
Customer The invoice (type ZRE) is created referring to the return delivery Standard VF01
Invoice document. All the relevant details like customer, sales org, material,
(credit quantity, pricing terms, etc. are copied into the invoice automatically,
memo) and saved. The basic price, GST components are posted to pre-
designated G/L accounts.
Accounting The accounting documents are automatically posted, and the same Standard (auto)
Document can be viewed (if required) to see the G/L account postings. FB03
Credit After the invoice gets posted and accounting document gets created Custom Format
Memo successfully, printouts can be taken. VF03
Printout

Pre-requisites for the sales process are as follows:

 Preceding Invoice is present in the system

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 Process Flow:

Master Data

Return Customer Material Output

(Process: KGSD004) Master Master Record

Gate Entry of
Truck in Plant

Return Sales Order (with

Return
reference to preceding
Delivery
invoice)

Gate Exit of Truck Print Credit Credit Post Goods

from Plant Memo Memo Receipt

Colour Legends: Standard Object Custom Object Physical Event

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 6.5. Debit Memo: Process KGSD005

To Be Process:

SAP Sale capturing process description Custom/Standard

transaction code
Document
Sales A sales document may be created on the basis of a customer Standard  VA01
Order complaint. This increases receivables in FI. A sales order of type ZDR
(Debit Memo Request) may be created in reference to the invoice. The
same can also be created without referring to any document.
Debit The invoice (type ZDR) may be created referring to the debit memo Standard VF01
Memo request. All the relevant details like customer, sales org, material,
quantity, pricing terms, etc. are copied into the invoice automatically,
and saved. The basic price, GST components are posted to pre-
designated G/L accounts.
Accounting The accounting documents are automatically posted, and the same Standard (auto)
Document can be viewed (if required) to see the G/L account postings. FB03
Debit After the invoice gets posted and accounting document gets created Custom Format
Memo successfully, printouts can be taken. VF03
Printout

Pre-requisites for the sales process are as follows:

 Customer master should be maintained in system

 Master of the saleable material, e.g., Finished Goods should be maintained in the
system
 GST condition rates should be maintained in the system

Process Flow:

Master Data

Debit Memo Customer Material Output

(Process: KGSD005) Master Master Record

Debit Memo Request (with Debit Print Debit

reference to preceding
Memo Memo
invoice)

Colour Legends: Standard Object Custom Object

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 6.6. Credit Memo: Process KGSD006

To Be Process:

SAP Sale capturing process description Custom/Standard

transaction code
Document
Sales A sales document created on the basis of a customer complaint. This Standard  VA01
Order reduces receivables in FI. A sales order of type ZCR (Credit Memo
Request) is created in reference to the invoice. The same can also be
created without referring to any document.
Credit The invoice (type ZCR) may be created referring to the credit memo Standard VF01
Memo request. All the relevant details like customer, sales org, material,
quantity, pricing terms, etc. are copied into the invoice automatically,
and saved. The basic price, GST components are posted to pre-
designated G/L accounts.
Accounting The accounting documents are automatically posted, and the same Standard (auto)
Document can be viewed (if required) to see the G/L account postings. FB03
Credit After the invoice gets posted and accounting document gets created Custom Format
Memo successfully, printouts can be taken. VF03
Printout

Pre-requisites for the sales process are as follows:

 Customer master should be maintained in system

 Master of the saleable material, e.g., Finished Goods should be maintained in the
system
 GST condition rates should be maintained in the system

Process Flow:

Master Data

Credit Memo Customer Material Output

(Process: KGSD006) Master Master Record

Credit Memo Request (with

Credit Print Credit
reference to preceding
Memo Memo
invoice)

Colour Legends: Standard Object Custom Object

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7. Advance/Commission

 Computation of Dealer commission and Agent Commission in FI

 Customer Advance Payment mapping through FI

8. T-codes

SAP SD Transaction codes List:

The most frequently used transaction codes are as follows:

Area T-code Function

Customer BP Customer Master Creation

BP Change Customer

BP Display Customer

Material MM01 Create material

MM02 Change material

MM03 Display material

Sales order /
Quotation / Inquiry VA11 Create Inquiry

VA12 Change Inquiry

VA13 Display Inquiry

VA01 Create Order

VA02 Change Order

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 VA03 Display Order

VA05 List of sales orders

VA21 Create Quotation

VA22 Change Quotation

VA23 Display Quotation

Delivery VL01n Create outbound delivery

VL04 Collective creation of delivery

VL06O List of deliveries

VL02N Post goods issue

Billing VF01 Create billing document

VF03 Display billing document

VF04 Billing due list

FBL5N Display Customer invoices by line

9. Enhancements/Z-Reports/Output

Enhancement Description
N.A. N.A.
Z-Reports Description
Stock report to Report Details:
identify excess order
quantity booked  Date [dd/mm/yyyy]
against available  Party [customer no. for whom excess quantity is booked]
physical stock  Material [the concerned material no.]
 Physical Stock [MT]
 Excess Quantity (booked) [MT]
MIS Report Report Details:

 Sl. No.
 Sales Order No.
 Delivery No.
 Invoice No.
 Invoice Date

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  Invoice Time
 Material
 Customer
 Transporter
 Vehicle No.
 Quantity
 UoM
 Rate (pricing rate)
 Basic (total price)
 Insurance
 Freight (carriage outward)
 Tax
 Freight
 Grand Total

Report generation – (a) date-wise; (b) party-wise (customer); (c) broker-

wise; (d) transporter-wise; (e) material-wise
Despatch Report Report Details:

 Material
 Quantity
 Basic Price [rate]

To be generated daily, weekly and monthly

Output Description
Invoice Print-out Format provided as hard-copy
Gate Pass To be printed with invoice [format provided as hard-copy]

10. Sign-off
Approved by Date

Client Process OWNER

Name: Mr. S.K. Das R. K. Swain

Designation: CFO GM (F&A)

_________________________________________
DD/MM/YYYY
Signature

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