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Module 12

Module 12. Setup for Sales and Distribution. Sales Organization. A sales organization is responsible for negotiating sales conditions and distributing goods and services.

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Module 12

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  1. Module 12 Setup for Sales and Distribution

  2. Sales Organization • A sales organization is responsible for negotiating sales conditions and distributing goods and services. • It represents the top organizational level to which you sum sales figures. There must be at least one sales organization defined • A sales organization is assigned to only one company code. • More than one sales organization can be assigned to a company code.

  3. Sales Organization Distribution Channel Wholesale Retail Direct Distribution Channel • A Distribution Channel is the way sales materials reach the customer. • A distribution channel can be assigned (serve) to more than one sales organization. • Distribution Channels allow for different conditions such as minimum order quantities and pricing.

  4. Sales Organization Divisions Product Line 1 Product Line 2 Product Line 3 Division • Divisions are used to represent product lines. • At least one division must be defined. • Divisions can be assigned to more than one sales organization. • Divisions restrict access to materials, so care should be exercised in defining divisions.

  5. Sales Organization 1 Distribution Channel 1 Distribution Channel 2 Division 1 Division 2 Division 1 Sales Area • A Sales Area is a valid combination of Sales organization, Distribution Channel and Division. • Customer Master Data and Sales Documents are linked to sales areas. • Simple organizational structures are usually preferred to complex ones.

  6. Sales Office and Sales Group • A sales office is an optional organizational structure that establishes contact between the firm and the regional market. The sales office primarily provides a way to manage, report and analyze sales by region. • Sales groups can be used to further break down sales reports for a sales office by the sales group.

  7. Shipping Point • A shipping point is a fixed location that carries out shipping activities. It may be a loading dock, a mail room or a shipping department. • One plant can have multiple shipping points. • A shipping point can serve multiple plants. • Lead times for determining delivery dates are associated with shipping points and routes.

  8. SP 1 SP 2 SP 3 Plant Shipping Point Route Customer Shipping Point and Route • The Route is the path that the delivery follows from the plant to the customer site. • Delivery dates are determined based on lead times associated with the shipping point (picking and packing time) and route (transportation lead times and transit times). • Transportation lead time is the time required to arrange for transportation. • Transit time is the actual shipping time.

  9. Material Availability • The SD module first uses backward scheduling starting at the required delivery date to determine if the customer’s delivery requirements can be met. • If the customer’s required delivery date cannot be met, then the system uses forward scheduling to determine a feasible delivery date.

  10. Requested Delivery Date Material Availability Date Transportation Planning Date Goods issue date Loading Date Order Date Transit Time Loading Time The R/3 System uses the longer of these two times in calculating delivery scheduling. Pick Pack and Stage Transportation Lead Time Stock Available: Backward Scheduling

  11. Confirmed Delivery Date New Material Availability Date Transportation Planning Date Goods issue date Loading Date Order Date Transit Time Loading Time The confirmed delivery date is derived by the R/3 System using forward scheduling based on the new material availability date Pick Pack and Stage Transportation Lead Time Stock Unavailable: Forward Scheduling

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