Sap Sd Terms 1

8/11/2019 Sap Sd Terms 1

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Business Scenario: Business-related grouping of business processes localized in a specific

organizational area that share some similar goals in an enterprise, such as purchasing, services,balance sheet preparation, production, personnel administration, and so on.

Organizational Unit: Organizational grouping of enterprise areas which, for legal reasons or forother specific business-related reasons or purposes, are grouped together. Organizational units

include legal company entities, sales offices, and profit centers.

Master Data: Data which is used long-term in the R/3 System for several business processes.Examples include customers, materials, and vendors.

Transactions: Application programs which execute business processes in the R/3 System such ascreating a customer order, posting an incoming payment, or approving a leave request.

Document: A data record that is generated when a transaction is carried out.

Reports: Program which reads certain data elements and displays them in a list.

The highest-level element of all organizational units is the client. The client can be an enterprisegroup with several subsidiaries. All of the enterprise data in an R/3 System implementation is split

into at least the client area, and usually into lower level organizational structures as well.

Flexible organizational units in the R/3 System enable more complex enterprise structures to berepresented. If there are many organizational units, the legal and organizational structure of an

enterprise can be presented in different views.

By linking the organizational units, the separate enterprise areas can be integrated and the

structureof the whole enterprise represented in the R/3 System.

A Company Code is a unit included in the balance sheet of a legally-independent enterprise. It is

the central organizational element of Financial Accounting.

The Controlling Area is the business unit where Cost Accounting is carried out. For thepurpose of company-wide cost accounting, one controlling area can handle cost accounting for

several

company codes in one enterprise.

In the context of Sales and Distribution, the Sales Organization is central organizational

element that controls the terms of sale to the customer. Distribution Channel is the element thatdescribes through what channel goods and/or services will be distributed to the customer.

In the context of Production Planning and Control, the Plant is the central organizational unit.

A plant is the place of production or simply a collection of several locations of material stocks inclose physical proximity.


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A Storage Location is a storage area comprising warehouses in close proximity. Material

stocks can be differentiated within one plant according to storage location (inventory management).

Data records that remain in the database for a long period of time are called master data. Master dataincludes creditors, vendors, materials, accounts, and so on.

Master data is created centrally and can be used in all applications.Example:

A customer is master data that can be used in customer requests, deliveries, invoices, andpayments.

Master data also has an organizational aspect as it is assigned to organizational units.

Master data has cross-component usage

Examples:

Customer master data uses the same data for financial accounting and sales

Customer master records can be assigned to the following organizational units:Company codeSales organizationDistribution channel

Division

Customer Master- Sales dataIf you also have SAP Sales and Distribution implemented, there are additional fields you can

maintain. These fields contain information and control data that are necessary for processing thebusiness activities in the Sales area.

Fields for customer master data are divided into Accounting and Sales areas. Address data is used

from both areas. In the Sales area, information recorded can be accessed by Financial Accountingand vice versa.

Note:

The structural logic for customer master records/accounts receivable is also valid for vendormaster records/accounts payable.

Documents are captured and stored on R/3 with various amounts of information.

Examples:

Sales, Orders,Purchase, Orders,Production, Order,Material, Documents,Accounting, Documents

Output is any type of communication of data.

Types of output:file, Fax, Email, Printout, Screen

Reports/Lists are information that is derived from a source and presented to the user in someoutput type. You can generate reports directly from the online transactions or from the other sourcesof summarized data such as the Business Information Warehouse, Executive Information System or

the various module Information Systems.


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Detail Transaction information is stored on the R/3 system and summarized data is typically

stored on the BW, EIS or Information System for detailed summarized analysis using the toolsprovided by those systems.

Master Data

What is master data? In SAP terms, master data refers to the collections of the

products you sell, the materials you use to manufacture them, the bills of materials

(BOMs) with the components for each product, and the list of your companys

customers and vendors. It also refers to the rules governing the relationship with

your business partners (i.e., customers and vendors, detailing prices, discounts,

terms, etc.).

SAP transactions take the information contained in the master data and use it to

produce a result. This result may be a sales order, purchase order, production order,

or bill, to mention just some of the different documents that SAP works with.

In this chapter, well take a look at the most influential master data objects for

Sales and Distribution.

Importance of Master Data

Master data in the SAP system and specifically in Sales and Distribution (SD) is the

foundation on which transactions are executed. When you create, for example,

a sales order in the SAP system, you have to enter the customer number for the

party you are selling to and the material number of the product you are selling.

Based on this information, the system will determine the price and discounts that

you can offer this client, shipping address, place where you are shipping the materials

from, shipping conditions, and shipping methods. It will also determine what

kind of information will need to be passed on to the warehouse so that they can


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start picking the product and be able to pack and ship it.

As you see, when you create transactional data, the system makes determinations

for the execution of that business process. All of these determinations have to be based on

business rules, and on the master data that is involved in that

transaction.

So, if you want to obtain accurate results, you need your master data to be accurate.

The more time that is invested in making sure that the master data is correct

and complete, the better your transactional results will be, and youll be able

to substantially reduce the time you need to invest in correcting or completing

incomplete or incorrect transactions; which will, in the end, result in higher customer

satisfaction.

If you make sure that the material master data for SD has been created for all of

the relevant sales organizations and channels your clients belong to, then you are

off to a good start. You can also double-check that your customers have complete

sales and shipping data so that the product can be delivered to them. You can do

that by running Transaction XD03 - Display Customer Master, or by following

the menu path

Logistics Sales and Distribution Master Data Business Partner Customer Change

Complete.

On the initial screen, enter the account

and select the Customers Sales Areas button. Youll see a list of sales areas activated

for your customer. Well talk about customer master data maintenance in detail

later in this chapter.


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Pricing is another important element. You need to make sure that the relevant pricing

condition records and price lists have been created. This will help you avoid

errors in the value of the sales orders. Pricing will be discussed in detail in later

chapters.

Records are also kept in the system to calculate freight charges, and you need to be

sure to maintain them regularly because prices vary depending on the freight company,

the distance, the mode of transportation, and even the season of the year.

Important

Master data isnt static, and its important to maintain master data constantly and accurately.

If you understand and apply this message, your SAP experience will be much

more productive and much less stressful.

Business Partners

To initiate any transaction in the system, such as creating a sales order or purchase

order, you must have master data objects defined. This includes your business

partners. In SAP ERP, you can clearly divide these business partners as follows:

Customers: A business partner to whom you are providing goods or services.

Customers can be external or internal, and if that customer is also providing

you with goods and services, you can link the customer master record to a vendor

master. Individual customer master records can be defined for specific partner

functions and can be linked together.

Vendors: A business partner who provides your company, affiliates, or external

customers directly with goods and services. Vendors can also be both internal


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and external, such as your distribution warehouses or other affiliates procuring

goods within your organization. Also, if your vendor is buying goods and services

from your organization, you can link the vendor master record to the

customer master.

Other partners: Includes a mix of things such as site data, contact person, sales

personnel, and competitors. Some of these objects can also be linked to other

business partner master records.

Sap Sd Terms 1

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