SAP SD Terms used !

SAP:

Definitions:

1.Sales organisation: Sales Organization is an organizational unit responsible for the sale of certain products or services.mostly repersesnted 4-digit alpha numeric codewith external numbering.

2.Distribution channels: It is the way, in which Products or Services reach Customers.

3.Division: It is a way of grouping materials, products, or services.

4.Sales Area: Sales Area is the combination of the Sales: (Organisation + Distribution Channel + Division)

5.Sales Office: Sales office of a company is an office, which has sales persons associated with it.

I 6.Sales Group: Sales group is determined in the sales order as per customer master, sales area data or it can be maintained manually.

7. Shipping point: Shipping Point is the Organizational element, which is responsible for shipping the Materials to the Customers.

8. Plant: A plant is a place where either materials are produced or goods and services provided.

9. Storage Location : It is a storage area comprising warehouses in close proximity. Storage locations are always created for a plant.

10.Enterprice Structure: It is an organizational structure that represents an enterprise in SAP R/3 system. It consists of some organizational units like sales organisation, plant, storage location, division, distribution channel,sales office, sales group,etc...

Assignments needed in SD Module:

company code - company, company code - credit control area, company code -controlling area, sales organisation- company code, plant - company code, distribution channel – sales organisation, division – sales organisation, set up a sales area, sales office – sales area, sales group – sales office, sales organisation – distribution channel – site, sales area -credit controll area, purch organization- company code, purch organization- plant, standard purchase organization-plant, purchase organization – reference purchase organization, warehouse number – plant, shipping point to plant, maintance planning site to maintance plant, personal area – company code, etc...

11. Company Code:The company code is the central organizational unit of external accounting within the SAP System.

Why we need company code: You must define at least one company code before implementing the Financial Accounting component. The business transactions relevant for Financial Accounting are entered, saved, and evaluated at company code level. You must set up at least one company code in each client.

12. Controlling Area: It is the central organizational unit of the Controlling (CO) component. You use the controlling area to carry out cost accounting.

Why we need controlling area: You must assign a controlling area to your company code to ensure that this data is forwarded to Controlling for further processing for cost accounting.

13. Material Master: The material master contains information on all the materials that a company procures or produces, stores, and sells. This information is stored in individual material master records.

Views available in Material Master: Client, Company Code, Plant, Storage Location, Purchase Organization, Sales Organization, Warehouse Number, Storage Type.

14.Master Data: Master data is data that remains unchanged over a long period of time. It contains information that is always needed in the same way.

Master data available in SAP SD: Customer Master data, Material Master data, Customer-Material Information Record, Output Master data, Condition Master data.

 

15: what typically Customer Master have : It has 3 tabs viz General (master details), Company data(company details) , Sales data (sales details) .

 

16.Basic Partners in SAP SD: Internal Employees ( partner in HR system) and External Parties (customer and vendor)

17. Availablity Check: Availability check is an integral part of the business process that determines if the required delivery quantity can be met on a required delivery date.

18. MRP: The main function of material requirements planning is to guarantee material availability,. that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution.

19. Contract:A contract, also known as a blanket PO, just contains quantity and price information and no details of specific delivery dates

20. Delivary: A delivery is the basis for a process where the goods are physically moved and for the posting of goods.

Types of Delivary Documents in SAP: For Inbound Delivary Process, (Inbound Delivary Notification, Inbound Delivary) For Outbound Delivary Process, (Outbound Delivary Request, Outbound Delivary Order, Outbound Delivary).

21. Inquery: An Inquiry is an internal document that records the information about request from prospective customer for internal use only.

22. Quotation: It is a document that legally attached for us lo know who issued it.

23. Copy Control:Copy control is the process which is used to copy the data from source document to target document .

24. Customer Account Group:customer account group defines the structure of the customers master data.

25. Partner Function: Partner Functions are terms that describe the people and organizations with whom you do business, and who are therefore involved in Business transactions.

How to define Partner Function:

Define:SPRO>> choose Customer Relationship Management ® Basic Functions ® Partner Processing ® Define Partner Functions.

26. Cross Selling and how do u cross sell: Cross Selling is a concept by which the business can improve the sales. By using this concept the business can offer combination material for ordered material.

eg:

Suppose you got a call from the customer for a computer, along with that computer you are going to show him Head phone, Mouse etc. This is what called cross selling.

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 27. Material Rebate: A partial refund following a purchase (after billing) depending on the particular product, product quality, time, and place of purchase.

Rebates Process in SAP: It is divided into three components
1) Configuring Rebates
2) Setting Up Rebates
3) Managing rebate agreements and payments

28. Scheduling Agreement: Scheduling agreement is an outline agreement with the customer which generally contains delivery quantities and dates.

29.Accounting Documents generated in SD:The accounting document created at SD typically contains the following three lines:

-Customer posting in accounts receivable and simultaneously posting to reconciliation account in general ledger

-Sales revenue posting

-Tax posting

-Discounts

 

30. Partner Determination: The process of determining all the entities who are involved in a business transaction.