Sales and Distribution (SD) 1

This case study explains an integrated sales and distribution process in

detail and thus fosters a thorough understanding of each process step and
underlying SAP functionality.

MOTIVATION PREREQUISITES
The data entry requirements in the Before you use this case study, you
sales & distribution exercises (SD should be familiar with navigation in
1 through SD 8) were minimized the SAP system.
because much of the data was
stored in the SAP system. This In order to successfully work through
stored data, known as master data, this case study, it is not necessary to
simplifies the processing of have finished the SD exercises (SD 1
business transactions. through SD 8). However, it is
recommended.
In the sales order process, we
used master data for customers, NOTES
materials (the products we sold)
This case study uses the Global Bike
and pricing to simplify the sales
Inc. (G.B.I.) data set, which has
order process.
exclusively been created for SAP UA
global curricula.
In this case study, we will create
the master data for a new
customer.

1
 Create New Customer

Task Create a new customer. Time 10 min

In this case study, we will create the master data for a new customer. Two types of
customer data are stored about a customer sales data and accounting data. The customer
master data is created in three groups, or views general, accounting, and sales. Customers
can be created centrally, meaning that all views are generated concurrently, or
responsibility can be distributed so that different personnel in the accounting and sales
areas are responsible for creating and maintaining the data in their respective views. For
this exercise, central creation will be used to enter all of the needed data to define a new
customer.

To create a new customer, follow the menu path:

Logistics Sales and Distribution Master Data Business Partner Customer
Create Complete
This will produce the following screen:

US00
UE00
WH
BI

2
Select Sold-to Party for the Account group. Enter US00 for Company code, UE00 for Sales
Organization, WH for Distribution Channel, and BI for Division. After clicking on , the
following screen will appear.

Company

The Bike Zone

###

2144 N Orange
Ave

32804, Orlando

US, FL

Enter Title: Company, Name: The Bike Zone and ### for Search term 1. Remember to
replace ### with your three-digit number assigned to you.

Then, enter 2144 N Orange Ave for Street, 32804 for Postal Code, Orlando for City, US for
Country, and FL for Region. Then click on the expand icon (which is next to the Region)
to access additional street address fields.

Once you have expanded the icon, scroll down and click on the search icon next to the
Transportation Zone field. This will produce the following pop-up window.

Double-click on Region East to select it. Then, Click on Company Code Data button which
will produce the following screen.

3
Enter 110000 for Recon. account (reconciliation account) and 001 for Sort
key. Then, click on the Payment Transactions tab. 110000
001
After entering 0001 for Terms of payment and clicking on the Sales Area Data
button, the following screen will appear. 0001

Make sure USD is entered for Currency and 1 is entered for Cust.pric.proc.
Enter 1 for Cust.Stats.Grp, then click on the Shipping tab. Fill in the following USD
data. 1
1

4
As shown above, enter 02 (normal) for Delivery Priority, 01 (standard) for 02
Shipping Conditions, MI00 for Delivering Plan, and 3 for Max. partial 01
deliveries. Then click on the Billing Documents tab. MI00
3

FOB Miami
0001
01
0

Enter FOB and Miami for Incoterms, 0001 for Terms of payment, 01 for
Acct.assgmt group and 0 for Tax classification for all three categories. Then
click on the save icon .

The SAP system will create the master record for the new customer and assign
the customer a unique customer number. Customer
number

Click on the cancel icon to return to the SAP Easy Access screen.

5
 Create Contact Person for Customer

Task Create a contact person for a customer. Time 5 min

Short Description Use the SAP Easy Access Menu to create a contact person.

Now that we have created the master data for our new customer, The Bike
Zone, we can create the master data for a contact person. A contact person
is an employee/representative of the new customers company. The contact
person defines a specific person to communicate with when dealing with
The Bike Zone.

To create a contact person, follow the menu path:

Logistics Sales and Distribution Master Data Business

Partner Contact Person Create Menu path
This will produce the following screen.

If your customer number is not entered by default, then search for your
new customer using the F4 help with search term ###.
###
When your customer number is entered, click on which will produce the
Contact Person Create screen.

6
Enter 1 for VIP (management), 0002 for Department (Purchasing), 02
for Function (head of purchasing), and 0002 for call frequency (weekly). 1
Enter your name, and fill in any other data you like, then click on . 0002
02
0002
Your contact person will be given a unique number.
Contact person
number

Click on the exit icon to return to the SAP Easy Access screen.

7
 Change Customer
Task Change a customer. Time 5 min

Short Description Use the SAP Easy Access Menu to change a customer.

The contact person created for The Bike Zone needs to be assigned as a business partner
within the customer master.

To create an inquiry, follow the menu path:

Logistics Sales and Distribution Master Data Business Partner Customer
Change Sales and Distribution

This will produce the following screen.

UE00
WH
BI

If the customer number is not entered by default, search for it using the F4 help and the
search term ### (your number). Make sure that following values are entered: UE00 for Sales
Organization, WH is entered for Distribution Channel, and BI for Division. Then, press
Enter.
On the Sales Area Data screen, select the Partner Functions tab. The following screen will
appear.

CP

8
In the next empty row, enter CP for PF (partner function). Click on the Number field and
then on
the
search
icon ,
which
will
bring
up the
followi
ng
search
window
.
Your customer number is entered automatically. Make sure that all other fields are
empty like it is shown in the screenshot above. Then, click on the enter icon to
begin the search and find your newly created contact person.

Double-click on the partner to enter the partner number. Click on to save.

Click on the cancel icon to return to the SAP Easy Access screen.

9
 Create Customer Inquiry
Task Create a customer inquiry. Time 10 min

Short Description Use the SAP Easy Access Menu to create a customer inquiry.

Now we will enter an inquiry from our new customer, The Bike Zone. An inquiry
is a customers request to be provided with a quotation or sales information
without obligation. An inquiry can relate to materials or services, conditions, and
if necessary delivery dates.

To create an inquiry, follow the menu path:

Logistics Sales and Distribution Sales Inquiry Create

This will produce the following screen.

IN
UE00
WH
BI

Enter the following information: IN for Inquiry Type, UE00 for Sales
Organization, WH for Distribution Channel and BI for Division. Then click on .
This will produce the following screen.

Click on the Sold-to party field, then click on the search icon , which will bring
up the following search screen.

10
 ###
Orlando

Because you have defined a search term when we created our new customer, we
can now use it to find your The Bike Zone.

Click on the Customers (general) tab, enter ### for search term and Orlando for
City. Then, click on . This will produce the new customer.

Double-click on The Bike Zone to select it.

###

todays date

one month from

today

Enter ### for PO Number, todays date for the PO date (F4, then Enter), todays
date for the Valid from date (F4, then Enter) and a date one month from today
for the Valid to date (F4, then select the date).

The Bike Zone wants a quote on two products the Deluxe Touring Bike (black)
and the Professional Touring Bike (black). To find these products, we need to use
the search function. Click on the material field, then click on the search icon .
Make sure you are on the Sales material by description tab.

11
 UE00
WH
*###

On the Sales material by description tab, enter Sales Organization UE00,

Distribution Channel WH and Material *### (e.g. *005 if your number is 005).
Then click on to get the list of bicycles.

DXTR1###
5

Double-click on the Deluxe Touring Bike (black) to select it and enter an order
quantity of 5 pieces.
PRTR1###
2

Repeat the process to enter a quantity of 2 of the Professional Touring Bike

12
(black). Click on the enter icon to determine the price for this order.

The total price for these 7 bikes to The Bike Zone is 21,400.00, which is given by
the net value. The Expect.ord.val (6,420.00) is a calculated value which takes the
net value of the order and multiplies it by the probability of having an inquiry from
this customer turn into an actual order. Use the scroll icon to get to the Order
probability column (two columns right of the Net value column).

The order probability of 30% is the default value that was set for GBI for inquiry
documents. The expected order value is then 0.30 x 21,400.00 = 6,420.00. We can
change the order probability for an inquiry, which makes sense as different
customer inquiries would have different probabilities of becoming an actual sales
order.

Change the order probabilities to 75%, then click on the enter icon to update
the inquiry and note the new Expect.ord.val of 16,050.00.

Click on to save the inquiry. The SAP system will assign a unique number to
the inquiry.

Click on the exit icon to return to the SAP Easy Access screen.

13
 Create Customer Quotation

Task Create a customer quotation. Time 10 min

Short Description Use the SAP Easy Access Menu to create a customer quotation.

An inquiry presents the terms (price, delivery schedule) to a customer considering a purchase.
A quotation is similar, except that it is a legally binding offer for delivering the requested
product or services.

The Bike Zone would like a firm quote for the items in the inquiry created before. We can do
this easily by copying the details from the inquiry into the new quotation. To do this, follow
the menu path:

Logistics Sales and Distribution Sales Quotation Create

This will produce the following screen.

Enter QT for Quotation Type, then click on Create with Reference button. This will produce
the following screen.

14
Make sure the Inquiry tab is selected, click on the Inquiry field, then on the search icon .
This will produce the following search window.

###

In the Sales documents by customer tab, enter your Purchase order no. (###), then click on
. This will produce a list with the inquiry for The Bike Zone.

Double-click on the inquiry to select it, and the inquiry number will be copied in the Create
with Reference window.

15
Click on the Copy button to copy information from the inquiry into the quotation screen.

Enter ### as PO number again, todays date for the PO date, a date one month from today
for the Valid to date, and a date one month from today for the Req. deliv.date. Then click on
the enter icon , which will produce the following warning.

Click on the enter icon to acknowledge the warning. This will produce an information
message.

Click on the enter icon to acknowledge this information.

To encourage The Bike Zone to become a loyal customer, you have been authorized to give a
$50.00 discount on each Deluxe Touring bike, as well as a 5% discount on the entire order.

16
To add the $50.00, select the Deluxe Touring bike line in the order, then click on the Item
conditions icon . You will get a screen that shows the pricing details for your Deluxe
Touring Bike.

In SAP, pricing is done using conditions. The pricing procedure defines which condition
types are to be used to calculate the final price. Condtion type PR00 is a gross price
condition. To add a discount, we can add condition type K004 (material discount) with a
value of 50 to the pricing procedure.

K004
50

After clicking on the enter icon , a new price for the 5 Deluxe Touring bikes will be
calculated.

Note that the discount is now applied to the order. Click on the back icon to return to the
main quotation screen.

To apply a 5% discount to the entire order, follow the pull-down menu path:

Goto Header Conditions

This will produce the following screen

17
To apply the 5% discount, enter CnTy (condition type) RA00 (Net Discount) with an amount
of 5, then click on . Note that the price does not yet include the 5% discount.

RA00
5

To include the 5% discount, click on the activate icon .

The 5% discount is now applied. Note that it is applied to the price after the $50 discount per
Deluxe Touring bike. Click on to save the new quotation.

Click on the exit icon to return to the SAP Easy Access screen.

18
 Create Sales Order Referencing a Quotation
Task Create a sales order with reference to a quotation. Time 10 min

Short Description Use the SAP Easy Access Menu to create a sales order.

The Bike Zone has agreed to the terms and conditions in the quotation, and wants to order the
bikes in the quotation. As a result, we can simplify the order creation process by copying the
quotation into a sales order.

To create a sales order, follow the menu path:

Logistics Sales and Distribution Sales Order Create

This will produce the following screen.

OR

Enter Order Type OR. The other fields do not necessarily need to be filled. Then, click on the
Create with Reference icon. This will produce the following pop-up search window.

Make sure that the Quotation tab is selected, click on the Quotation field, then on the search
icon .

On the following search window, make sure you select the Sales document according to
###
customer PO number tab, enter ### for PO number, then click on the enter icon .

19
After double-clicking on the quotation, the number for the quotation will be entered into the
Create with Reference window.

With the Quotation number entered, click on the Copy icon to copy the information from
the quotation into the sales order screen.

###
todays
date

Enter ### for PO number and todays date (F4, then Enter) for the PO date. Note that the
Req.deliv.date is copied from the quotation. Click on to save the sales order. The SAP
system will assign a sales order number.

Click on the exit icon to return to the SAP Easy Access screen.

20
 Check Stock Status
Task Check the inventory. Time 5 min

Short Description Use the SAP Easy Access Menu to check the stock status.

We can check on the inventory level of the bikes in the sales order for The Bike Zone. To do
this, follow the menu path:

Logistics Materials Management Inventory Management Environment Stock

Stock Overview

This will produce the following screen.

UE00
WH
*###

To find the material number for your bikes, click on the Material field, then click on the
search icon .

Use the far-right icon to select the tab Sales material by description. Enter UE00 for Sales
Organization, WH for Distribution Channel and Material *### (e.g. *002 if your number is
002). Then click the enter icon to find the list of materials.

21
Double-click on the Deluxe Touring Bike (black) to select it.

MI00

With the material number entered from the search list, enter MI00 for Plant. Then click on
the execute icon to look at the stock level.

This report gives stock levels for the DC in Miami.

You can get more detail on the stock of black Deluxe Touring bikes. Select the Miami DC,
then click on the Detailed Display icon. This will give you very specific information about
the inventory of black Deluxe Touring bikes.

22
Note the 5 bikes that are part of the sales order. Click on the enter icon to close the
Detailed Display window, then click on the back icon to return to the main screen.

Use the search function to enter the material number for the Professional Touring bike
(black). Click on the execute icon and review the stock level for this bike.

Click on the exit icon to return to the SAP Easy Access screen.

23