The main operations of SD module handles:

Sales Support (SD-CAS)

Sales (SD-SLS)
Shipping (SD-SHP)
Billing (SD-BIL)
Sales Information System (SD-IS)
Transport (SD-TRA)
Export (SD-FTT)
Sap Sd Course Contents:

ERP Business Scenario & SAP Products.

Job opportunities for SAP SD professionals.
SAP Functional Modules.
SAP SD, MM, PP, FICO Integration areas.
What is R/3 Architecture?
How R/3 is superior over R/2?
Benefits with R/3.
ENTERPRISE STRUCTURE

Definition of SD organizational units & their Assignments.

Client, Company, Company code, Credit Control Area.
BUSINESS PROCESS

Sales Enquiry
Quotation
Standard Order
Delivery
Billing
Payments
Special SD Business Processes
MASTER DATA

Customer Master Data.

Account Groups & Field Selection, number ranges for customers.
Material Master Data.
Customer/Material Information Record.
Condition Master Data.
Shared Master Data.
BASIC SETTINGS

Item Category Determination.

Schedule line Category Determination.
Shipping Point Determination.
Picking Location Determination.
Blocking Reasons.
Order reasons.
SALES DOCUMENTS

Overview on Sales Document Structure & their control Tables Sales,

Shipping, Billing.
Document Types & their Functionalities Sales, shipping, Billing.
 Document Control, Item Category Control & Schedule line Control.
SALES DOCUMENT PROCESSING

Pre Sales Processing.

Outline Agreements Processing.
Sales Order Processing.
Complaint Processing.
Delivery Processing Picking, affects of PGI.
Billing Processing.
Copy Control for Sales, Delivery & Billing Documents.
BASIC FUNCTIONS IN S&D

Condition Technique
Free Goods
Pricing Determination.
Partner Determination.
Material Determination.
Listing / Exclusion.
Revenue Account Determination.
Tax Determination.
Output Determination.
Text Determination.
Free Goods Determination.
Availability Check and TOR
Transfer of Requirements.
Credit Management.
Delivery Scheduling & Transportation Scheduling.
Route Determination.
Incompletion Procedure.
atch Management.
Rebates.
Variant Configuration with Pricing.
ADVANCED TOPICS

Inter company Business processing.

Third party order processing.
Cross Company stock processing.
Bill of Material.
Back order processing.
Rescheduling processing.
Individual purchase order
Batch Management.
Rebate processing.
SAP METHODOLOGY

ASAP methodology.
ASAP project Documents.
Deliverables in ASAP.
THE INTEGRATION OF

SD with FICO,
SD with PP
 SD with MM
OTHERS

SAP SD Interview Discussions

Case Studies & Projects Experiences
 Material Management in SAP
Material Management function as an important SAP-Module which handles
material/external service procurement process, inventory management, and
vendors invoice verification in the entire organization. SAP-MM begins with
determination of organizations requirements, and then follows by determination
of source of supply, material procurement from external vendor or internal
procurement, goods receipt in storage location and issue to production lines or
costs objects including project; cost center; asset; order, and finally is finished
through invoice verification. The SAP-MM implementation makes sure the
inventory is enough. The SAP-MM facilitates procurement processes and business
flow of material management results cost-effective inventory processes. In
business environment, organization requires to complete business flow through
proving material or service from external vendors or internal procurement. The
SAP-MM represents basic procurement and special procurement in such cases.

Applications:
Determination of requirements: Purchase Requisitions component can
carry notification of requirements of materials and/or external services and keep
track of such requirements. Materials and/or external services requirements can
be indirectly created in SAP-MM via materials planning and control, via networks
(from the component PS Project System), via maintenance orders (from the PM
Plant Maintenance and Service Management component) or via production orders
(from the PP Production Planning and Control component).
Vendor Master Data: The SAP provides the function to maintain the
information about external suppliers that specifically relate to purchasing. Vendor
master data comprises three areas; General data, Company code data and
Purchasing data; including the vendors name and address, the currency the
vendor uses, Terms of payment, Names of important contact persons, and the
vendor number (stored in the SAP system as an account number), and accounting
information.
Request for quotation and quotation: In SAP-MM RFQ and quotation
component manages and compares requests for quotation (RFQs) issued to
vendors and the quotations submitted by the latter in response to them. In
situation in which an RFQ has been issued to several vendors, the component
determines the most favorable quotation submitted and automatically generates
letters of rejection to the unsuccessful bidders.
Purchase order: The MM-purchase order component is provided for a
variety of procurement purposes upon which materials can be procured for direct
consumption or for stock, and procure services. Furthermore, the special
procurement types "subcontracting", "third-party", and "consignment" are
possible. The purchase orders is used to cover the enterprise requirements from
external sources whether a vendor supplies a material or performs a service.
Furthermore, MM-PO is provided to procure a material for one of your plants from
an internal source, i.e. from another plant which is called Stock Transport order. All
steps of procurement process can be monitored in the MM-PO component (such as
the receipt of goods and invoices).
Outline Purchase Agreement: SAPs outline purchase agreement is
presented to handle a longer-term agreement between a purchasing organization
and a vendor regarding the supply of materials or the performance of services
within a certain period. Outline Purchase Agreement enables you to predetermine
terms and conditions. In Purchasing function, Outline Agreement is classified into
Contracts (Centrally agreed contracts, Distributed contracts), and Scheduling
agreements (Scheduling agreement referencing a centrally agreed contract.
Vendor evaluation: The SAP system database contains information about
the vendors that supply an enterprise and information such as delivery dates,
prices, and quantities can be taken from the Materials Management components,
and the results of incoming inspections or quality audits from the Quality
 Management components. Based upon the SAPs database, the Vendor Evaluation
component provides the accurate information on prices, and terms of payment
and delivery, and improves the enterprise's competitiveness. Furthermore, Vendor
Evaluation is applied to measure the reliability of the vendors whom provides
services on a plant whether the vendors perform the services within the specified
timeframes and appraise the quality of the work carried out.
Down Payment and Down Payment Request: Depending on the contractual
agreement with your vendor, you can determine a suitable down payment
category in the purchase order accompanied by the down payment amount or a
percentage and a due date. Both Logistics Invoice Verification and Financial
Accounting component can be used to clear down payments. If you perform down
payment clearing in logistics invoice verification, when you enter an incoming
invoice for a purchase order, the system proposes all down payments that have
been posted with reference to the purchase order and that are not yet completely
cleared, for down payment clearing. The system posts the down payment clearing
document together with the invoice document. If you want to clear down
payments in financial accounting instead of logistics invoice verification, the down
payment clearing is posted with reference to the purchase order and the invoices
already posted. During the payment run, the system offsets the down payment
made against the invoices.
Consignment Procurement: In consignment processing, materials are
procured and stored on your premises while the legal owner of the material is the
vendor till withdrawing materials from the consignment stores. In Consignment
Procurement, the vendor invoice must be immediately issued after you withdraw
materials from the consignment stores into your stock or for consumption.
Direct Procurement: Sometimes, materials/external services procurement
is processed for an especial subject. In such case, the purchase requisitions
bypass the warehouse and are set with an especial account assignment category,
i.e. cost center. You can determine the cost object of the direct procurement in PO
in order to simplify and facilitate the direct procurement.
Return to vendor: If you have received materials from external vendor
which are spoiled, broken or of inferior quality/damaged and you have to send it
back to vendor. Applying return corrects a goods receipt and issues a credit memo
against the vendor which it takes into account in Invoice verification. In this case,
return to vendor process is executed upon with/without Delivery. SAP-MM enables
you to post Return goods to vendor with/without reference to purchasing
Documents, i.e. a purchase order.
Intercompany process: Increasingly trend towards globalization and the
rapid increase in the number of company mergers are considerably effected on
internal financial and logistical processes within corporate groups. In this
situation, a plant which is actually a member of the same corporate group may
procure components from a supplier that, despite legally and technically
belonging to a different company. In the procuring plant, an ordering process is
completely carried out from supplying plant as a vendor. Upon such process,
Intercompany stock transfer order, you can achieve a complete price
determination process, monitor delivery of the goods, and use the vendor
confirmations (which may or may not be MRP-relevant). In the supplying plant,
you can also process a complete sales order processing cycle including order
entry (with the receiving plant as the customer), a sales-side price determination
function, delivery and billing options, and monitoring of the document flow.
Inventory Management: The SAPs inventory management represents
material stock management on a quantity and value basis, planning, entry, and
documentation of all goods movements, and carrying out the Physical Inventory.
SAP-IM implementation enables you to track the current stock situation of any
given material at any time, and to manage various types of a companys own
special stocks and externally owned special stocks separately from standard
stock. All goods movements including "external" movements (goods receipts from
external procurement, goods issues for sales orders) and "internal" movements
(goods receipts from production, withdrawals of material for internal purposes,
 stock transfers, and transfer postings) automatically update quantity and value
for Inventory Management, account assignment for cost accounting, G/L accounts
for financial accounting via automatic account assignment.
Goods Movement: Goods receipt, goods issue, stock transfer, stock posting
as goods movement update quantities and values in SAP-MM-IM. The receipt of
goods from an external vendor or from production as goods receipt (GR) leads to
an increase in warehouse stock. Based upon SAP-IM, you can accomplish Goods
receipt with/without references document such as reservation, or an order. A
material withdrawal or material issue, a material consumption, or a shipment of
goods to a customer as goods issue (GI) leads to a reduction in warehouse stock.
Such goods movement leads to update quantities and value of stock.
Stock Transfer and Transfer Posting: The removal of material from one
storage location and replace into another storage location as Stock transfer can
be carried out either within the same plant or between two plants. And, a transfer
posting as a general term for stock transfers changes stock type or stock category
of a material, i.e. Transfer postings from material to material, Release from quality
inspection stock, Transfer of consignment material into company's own stock. In
SAP-IM, Stock transfer can carry out upon three different procedures as follows:
o Stock transfer via stock transfer posting using the one-step
procedure,
o Stock transfer via stock transfer posting using the two-step
procedure,
o Stock transfer using a stock transport order.
External service procurement: MM External Services Management function
supports the complete cycle of vendor invitation, award/order placement phase,
and acceptance of services, as well as the invoice verification process. MM
External Services Management is completely integrated into the MM system with
providing the purchasing documents in which service specifications for a concrete
procurement project are entered. The External Services Management component
as also integrated to the SAP modules Plant Maintenance and Project System
upon which purchase requisition is created for external services within the
framework of maintenance measures or a project and then transmitted to
Purchasing without incurring additional data maintenance work.
Benefits:
SAP-MMs fully integration with Financial Accounting, Quality Management,
Sales Distribution, Logistic Execution, Plant Maintenance and Project System
provides subsequently default data for the purchasing documents and other
following documents.
SAP-MM integration with other modules leads to reduce data entry and
user errors.
Business flow integration in Material Management function facilitates
purchasing process and monitoring followed documents from creating purchase
requisition document till invoice verification.
Ability to post Goods receipt with reference to inbound delivery to achieve
common language between procurement and warehouse departments.
Ability to manage material in GR-blocked stock, specially for foreign
purchasing applying different Incoterms.
Ability to dynamically access to logistic information system.
Updating the price of materials with moving average price as price control
based upon purchasing documents and MM&CO integration.
Ability to determine different release strategy for several purchasing
documents based on various criterias, i.e. price, vendor, payment terms, and etc.
Ability to correct vendors invoice verification which leads to update
material price.
Ability to carry out external service procurement, and then enter & accept
services performed by service entry sheet as well as a goods receipt posting when
procuring materials.
Ability to carry out Free of Charge procurement.
 To control and execute efficiently Inventory Management and logistic
execution and invoice verification processes.
To forecast the future month requirements applying sales and production
program.
Ability to represent various reports based on its database.
To carry out report transactions rapidly and efficiently based on the
structure of Logistic Information System.
To record purchasing information record as a source of information for
procurement on a specific material and a vendor supplying the material.
To automatically create Purchasing Order for specific vendors based on the
stock level.
To archive historical data.
To track the important processes of the Su
To support inventory management with Non Valuated Stock.
To carry out procurement procedure of materials without stock.
 Human Capital Management in SAP
Recruitment Management
Recruitment component enables you to define a recruitment procedure that suits
the needs of your enterprise. You can distribute tasks and responsibilities to
different people involved in the recruitment process. Recruitment supports you in
dividing and assigning administrative and decision-making task areas.

Application
Enter Applicant data in system
Classifying Requests
Creating and automating confirming receipt of application
Carrying out an efficient selection procedure among applicants
Automatically transferring applicant data to Personnel Administration

Advantages
Selection and Hiring of suitable applicants for existing or future vacant
positions
Supporting recruitment processes (scheduling interview meeting, following
up the current status, correspondence )
Removing Duplicate data of personnel
Controlling the effectiveness of recruitment processes using a variety of
reporting options

Personnel Administration
Personnel administration component benefits from various data structures for
saving, updating and evaluating personnel information. The main purpose of this
component is to maintain all employee related data and to provide required
information for the activity of other components such as Time Management,
Payroll, Personnel Development, etc.

Application
Storing all personnel and working information of Employees
Issuing different personnel actions (Based on basic personnel procedures
within master data administration)
Maintaining classification of personnel based on existing hierarchies and
groupings in the organization
Storing and transferring required information to time evaluation and
payroll components

Advantages
Fully Integrated with other human resource components such as
Organizational Management, Performance management, Payroll and Time
management.
Grouping Personnel information for required information quick access
Grouping Employees based on various factors such as working area,
contract types and employee groupings
Enabling or disabling the possibility of having overlapping data records
individually (for different information)

Organizational Management
Organizational management is one of the main components for the functionalities
of human resource management in SAP and plays a significant role to integrate all
HR components. This component enables maintenance and management of
organizational structures and hierarchies including Organization units, positions,
jobs , tasks and work centers.

Application
 Create and maintenance of Organization structure
Defining tasks and qualifications and assigning them to jobs and positions
Defining relationships between organizational objects

Advantages
Fully integrated with other HR components such as personnel
administration, personnel development and performance management.
Defining Hierarchical structure with N level (without limitation)
Storing Historical Data related to previous versions of organizational
structure
Enabling creation of roles and authorizations based on existing positions in
the organization
Providing the context to run organizational workflows.

Payroll
The purpose of this component is to calculate remunerations based on existing
information of employees in personnel administration component and transferred
data from time management component.

Application
Calculation and payment of employees payroll
Calculation and payment of Off-cycle wages
Calculation and payment of settlement remunerations
Providing and emailing payslip
Creating Bank, Insurance and tax Disket files based on current results

Advantages
Possibility of defining different Payroll areas for employee groups with
different payment time
Enabling retroactive calculations based on dates of personnel changes that
Leads to retroactive accounting
Fully Integration with FI module in order to post payroll documents
Providing complete reports on different types of payments to employees
 Financial Management in SAP
Financial accounting responsibility at first glance is recording economic
events, processing and analyzing data and presenting the results of this
operation in the form of financial statements. But the goal of financial
accounting in a broader definition is to provide financial information for
economic decision-making. In fact, by providing vital information, financial
accounting enables decision makers to choose the most appropriate use of
economic resources in order to carry out business activities.
Moreover, the assessment reports prepared by the Financial Accounting
enable internal and external stakeholders to assess business units in order to
achieve their objectives. The traditional accounting models focus more on the
reliability of the information while the timeliness of this information is just as
important. So a set of reliable operational information systems need to be
created in order to meet the needs of information users and provide reliable
and high quality information in due time.
Efficient use of liquidity and preventing problems caused by its shortage is
one of the main concerns of any company and availability of accurate and
timely information about the status of funds can play an important role in the
planning and controlling of the issues related to liquidity.

FI Module / Bank Accounting

By providing the ability to record information related to the receipt and
payment of cash and check, carrying out necessary controls on the recorded
events and presenting various reports, Bank accounting providers the users
with an appropriate tool for managing liquidity in a proper way. Registration
and maintenance of foreign bank accounts with currencies other than the
countrys local currency can be done in this system.

Receivable/Bill of Exchange:
Receipt and recording of checks in the system with the ability to separate
commercial and non-commercial receivables is possible with the use of Special GL
Indicator.
After recording the checks, you can use one transaction to delegate them
to the bank
In case of collection or check return at bank, you can use one transaction
in order to automatically record the events.

Checks can automatically be returned to the customer with one single

transaction.
In the all of steps above, tracking and reporting of the documents and the
current status of the checks is possible.
Payable/Bill of Exchange:
The ability to create checkbook category for all current bank accounts and
assigning checks to any single or group payments in the system.
The ability to create a variety of payment methods
The ability to record long term payable checks
The ability to automatically assign checks to payments
The ability to print checks
The ability to provide bank statement reconciliation
The ability to provide cash management reports
Cash receipt and cash payment:
The ability to record cash receipt and cash payment with one transaction
and recording special cases
The ability to record cash receipt and cash payment with the use of cash
journal
 The ability to define a variety of business transactions for receipts and
payments in cash journal
The ability to define relevant accounts for receipt and payment in cash
journal
The ability to create authorizations for permanent and temporary
registrations

In SAP, you need to define House Bank and Bank Account in order to maintain
bank accounts. Basic bank information is created in the client level and in
each company it is necessary to create bank branches where they have an
account. It is also necessary to create interim account for each bank account
in the system. If there are multiple account in branches of a bank you can
define an account ID per account and a GL account should be created for each
account ID.
In this system, there are three modes possible for recording documents which
are Hold, Park and Post. Also, entry of special information with different dates,
automatic numbering of documents and exporting reports results to Microsoft
Excel is possible. The increased speed and accuracy of financial operations in
this system enables managers to control, plan and correct processes and
create new ones.

FI Module / Account Receivable

Account Receivable has a close relationship with Sales module. Account
receivables in this system involves issuing invoices , receiving cash and
clearing accounts which requires integration between Inventory and Finance
due to the relationship between sending goods and receiving payments.
Thanks to the integration in the system, when a sales order is issued, relevant
documents in Finance are also issued automatically.
Customer account definition in this system can be done at various levels.
Information such as Name, Address, Country, and Region etc. are defined in
General Data. Company Code data includes the information based on which
financial records are booked. Currency, terms of transport, credit limits, terms
of payment and etc. are maintained in Sales Data .It is also possible to block
customer accounts.
Recording down payments can be done with reference to requests called
Noted Item made by different departments. At the time of recording the down
payments, they can be automatically cleared with the invoices issued by the
Sales department.
 Controlling in SAP
Management Accounting contains defining, measuring, accumulating,
analyzing, preparing, interpreting and exchanging the information required for
planning, assessing and controlling an organization and optimizing the usage
of resources and fulfilling customers needs. Management accounting also
prepares financial reports for some non-managerial groups such as
stakeholders, creditors and legislative and tax organizations.
CO Module in SAP includes management accounting and prepares information
to make decisions on time. CO Module contains:
1. Cost Element Accounting
2. Cost Center Accounting
3. Profit Center Accounting
4. Product Cost Controlling
5. Project Cost Accounting
6. Profitability Analysis
7. Activity Based Costing
Each of the fields above, collects the information based on managers needs
and helps them in decision making.

Advantages:

Evaluating and calculating the total cost of product based on assessing

and different currencies
Transfer price between companies in a group
Calculating the cost of activities to calculate the cost of product
Recording the data of flow in and flow out of the product in material
ledger
Calculating the predicted and actual cost of the product
Calculating the cost of goods sold and evaluating again
Calculating the cost of goods manufactured
Calculating the total cost in companies in a group
Calculating the total cost in profit centers
Calculating the total cost in each plant
Calculating the total cost based on each factor (cost component split)
Calculating the total cost during the period (alternative valuation run)
Calculating the total cost in different ledgers (GAAP, IFRS, )
Calculating the predicted and actual cost of goods manufactured and in
each period
Assigning cost of cost centers to production of goods
Distribution usage variance
Profitability analysis account based and cost based
Profitability analysis based on customer, product, city, province, area,
etc.
What if analysis

Cost Element Accounting includes:

Costing of cost centers

Costing of internal orders
Activity based costing
Costing of projects

Features of costing
 Using preliminary and secondary factors in distribution and assessment
of costs
Ability to use one-direction and two-direction distribution method
Ability to use area currency controlling
Ability to use separated document categorization in total cost and
costing
Ability to transfer cost between cost containers without changing in
financial accounting
Ability to record information or predict costs and basics of distribution
for analysis of variances
Ability to calculate the rate of cost absorption based on cost
categorization
Ability to distribute deduction and addition of stock to orders and
products
Ability to use reporter painter and reporter writer
Ability to automate matching costs in financial accounting and
management accounting

Total cost contains these subcategories:

Product Cost Planning

Cost Object Controlling
Actual Costing ML

Features of total cost:

Ability to define components of total cost

Ability to integrate the information of production process and total cost
automatically
Using bill of material and routing in calculation of total cost
Ability to categorize and recognize variances (target cost, plan cost)
Ability to control and consider actual costs compared with predicted
costs or targets
Ability to use multiple valuation and transfer price
Ability to use material and absorption of wage and overload
automatically (back flash)
Ability to report total cost in each period divided by cost components
Distribution of calculated variances to unfinished goods, sold goods
and ending inventory
Ability to analyze variances and total cost in detail

The process of cost of goods sold in manufacturing companies

The process of total costs in projects

The process of total costs based on ABC method

Profit center and profitability analysis
Profit center accounting is being used for recognizing and analyzing the parts
of organizations which are profitable. This leads the company to correct or
optimize the operations which are not beneficial.
Profitability analysis helps the organizations to analyze the sale information
divided by customers and products and compare them with cost of goods sold
divided by customers and products to find out the gross profit. Also by adding
total administrative and general costs in the level of customer and product,
helps the decision makers to dominate the market compared with
competitors.
 Logistics Management in SAP
The Logistics Execution (LE) module provides the functionality of planning and
managing the execution of the operative logistical tasks such as Goods Issue,
Goods Receipt, Storage, Distribution, packaging, shipping and/or control of
internal transport. The Logistic Execution module is fully integrated into the
business scenarios such as Production Planning, Material management, Sales &
Distribution and so on. SAP-LE includes Warehouse Management, Shipping and
Transportation.

Applications:
Goods Receipt Process for Inbound Deliveries/ Goods Issue process for
outbound delivery: In the most companies, the logistics operation is based on the
inbound and outbound delivery process. The Inbound Delivery as a request for
putaway which is sent to the warehouse contains the data of the delivered stock
from vendor including planed/actual delivery date, quantity, packing list of
material and etc. Inbound delivery document leads to reduce data transferring
among warehouse and procurement department in enterprises. Outbound
Delivery gives information of the outgoing deliveries, detailed planning for
packing and shipping. Outbound Delivery is generated after creating customers
sales orders to facilitate the picking, packing and ultimate goods issue of the
items as they are delivered to the customer. When the inbound/outbound delivery
document is created, it can be viewed using the delivery monitor.
Batch management: Batch Management is applicable in all industries such
as Chemicals, Pharmaceuticals, Cosmetics, Health Care, Foodstuffs, Retail,
Aerospace, Mill Products, Mining as interconnects the entire logistics process, from
procurement to sales. A batch as a homogeneous unit with unique characteristics
is a subset of the total quantity of a material stored in stock. In SAP, batch can be
managed with classification or without classification. You can only track for
batches via the batch determination function if the batches are classified. Batch
determination can be applied in the SAP-functions including Goods movement,
Production/process order, Sales order/delivery, and Transfer order. In batch
management, it is possible to choose the level; the plant, material and
operational levels; at which the batch number to be unique.
Handle Unit Management: SAP-Logistics Execution manages packing-based
logistics structures under Handling Unit Management (HUM). A handling unit is a
physical unit that consists of the packaging materials (load carrier / packaging
material) and the goods contained therein. The handling units have unique,
scannable Identification number, Dimensions, Weight, Volume, Status, Materials
and quantities, Packaging materials, and Packing instructions. Applying LE-HUM
leads to process goods movements in easier way, and to optimize all logistics
operations. This simplified processing includes the existing packing function in
shipping and warehouse processing in the Warehouse Management system, which
is expanded here.
Shipment: In the goods issue side (SD, Sales & Distribution) as well as on
the goods receipt side (MM, Materials Management), goods must be shipped. you
can use the SAP transportation functions to plan and process. Incoming shipments
in Materials Management are based on purchase orders and shipping notifications.
Outbound shipments in Sales and Distribution are based on sales orders and
deliveries. The SAP Transport module constitutes transporter software. The
shipment can be used for the goods issue side as well as for the goods receipt
side, outbound deliveries or inbound deliveries can be the basis of the shipment.
The shipment, in which the "what, when, how, from/to where" to be shipped can
be defined.
This document serves different purposes in the "life cycle" of a shipment
as follows: Planning of shipments, Processing of shipments, Monitoring of
shipments and so on. In addition, SAP-TRA considers the shipment document as
basis for the calculation and settlement of shipments upon which the carrier must
receive payment for his activities.
 Foreign Trade/Customs: With increasing global markets, the need of
accuracy in handling the foreign trade becomes rapidly in importance. SAPs
Foreign Trade/Customs application (FT) provides the tools to help complex
business structures meet the rapidly changing foreign trade requirements of the
business. The whole supply chain from the import of raw materials, and export of
semi-finished products, and finished products to the sale and the transfer of goods
to Materials Management and Financial Accounting is extremely influenced by
foreign trade application. SAPs Foreign Trade/Customs function influences on:
o Managing import and export processes, and their integration with
the supply chain,
o Automatically identify licensing requirements for importing and
exporting goods based on current regulations
o Simplifying the reporting with automatic procedures for creating,
printing and submitting declarations
o Determining which of the products qualify for preference handling
o Providing an active interface for sending or retrieving data via
internationally available EDI systems and other electronic media
o Updating/changing data in all relevant foreign trade documents at
any time prior to the final goods issue. Even after you have posted the goods
issue, you can still change data in the invoice.
o The Foreign Trade/Customs (FT) application component is
completely integrated with Materials Management for handling imports and with
Sales and Distribution for exports, and with the Financial Accounting in the area of
documentary payments, as well.
Yard Management: SAPs Yard Management (YM) extends warehouse
management beyond the physical walls of the warehouse, enabling management
and control from the time that goods are planned to arrive at the warehouse. The
Yard Management application component is integrated with Logistics Execution
via an interface (package LEINT), with Warehouse Management (WM), and cross-
docking. Additionally, there is a closely integration between YM and LES
components for Transportation and Shipping upon which, location scheduling and
location determination is considerably is influenced. SAP-YM implementation
manages the yard processes including Check-in and check-out of vehicles,
Scheduling of doors and staging areas for vehicles, and Creation and execution of
movements in the yard which can be done manually or applying the system's
automatic scheduling/ location determination mechanism, and Creation and
execution of operations in the yard.
Warehouse Management: SAPs Warehouse Management system (WMS)
represents flexible, automated support for all goods movement processes and
stocks management in the warehouse complex. When you manage your
warehouse stocks with SAP-WM, you is enable to manage the whole warehouse
complex in detail to storage bin level. Warehouse Management module presents
not only the entire quantity of a material in the warehouse, but also determines
exactly location of a certain material currently is in your warehouse complex.
Applying all of the storage bins and warehouse movements, and store material
stocks from several plants together in warehouses with random storage is
optimized upon WMS. The Warehouse Management system (WMS) is fully
integrated into the SAP components including Inventory Management, Quality
Management, Production Planning, and External Systems. Based on SAP-WMS, you
can manage your stock at storage bin level, control the certain location of
materials and monitor all warehouse movements at all times. WM overviews all
goods movements including goods receipts, goods issues, stock transfers,
material staging for production, automatic replenishment, manages hazardous
materials, and processes stock differences in the warehouse complex.
Hazardous Material: In many industries, dangerous material such as
explosives, Petroleum fuels and oil, poisons, corrosive liquids, radioactive
materials requires special handling and placement into specially designed storage
facilities.in order to manage such materials. SAP Warehouse Management (WM)
application is provided to manage the handling and storage of hazardous
 material. In order to implement SAP-WM application to manage dangerous
materials, it is required to maintain the characteristics of such materials including
Hazardous material warnings, Handling instructions, Aggregate stages, Region
codes, Storage classes in the WM configuration.
Mobile Data Entry: In todays warehouse environment in which processes
are characterized by speed, reliability, and precision in processing individual
goods movements, SAP-radio frequency (RF) solution provides fast and error-free
data communication via mobile RF terminals. Applying the radio frequency
solution leads to make sure work is performed efficiently and at a reasonable cost,
the warehouse staff requires simple and easy-to-view control of each individual
process. The RF terminals receive data directly from the SAP System and transmit
the results back to the system. Mobile Data Entry is integrated with SAPs
Warehouse Management System (WMS) via supporting the movement of goods in
both HU-managed and non HU-managed storage locations, and with Task and
Resource Management (TRM). In addition, Mobile Data Entry supports the use of
bar codes for identification and verification purposes.
Direct Store Delivery: SAP Direct Store Delivery as an SAP mobile
application supports the process of selling and distribution of goods directly to the
customer store bypassing the retailer warehouses, marketing, and logistics
business processes for example, customer visits, orders, CRM activities, and
deliveries. The SAP Mobile Platform-based mobile app provides a closed-loop
solution by fully integrating DSD mobile capability with enhanced SAP Mobile
Direct Store Delivery (SAP mDSD) functions included in SAP ERP and by making
some CRM activities available from SAP Customer Relationship Management (SAP
CRM). The mobile app enables your mobile users, that is, your field sales force
and delivery drivers, to respond quickly to customer needs for new and revised
orders while reducing material losses.
Task & Resource Management: SAPs Task and Resource Management
(TRM) is provided to optimize the efficiency of the warehouse processes including
Creating optimal tasks, Optimizing the allocation of these tasks to warehouse
resources, Controlling task execution to prevent resource bottlenecks in the
warehouse, Providing visibility of all warehouse processes, Providing warehouse
managers with troubleshooting tools to effectively deal with problems, both
before and after they arise, Supporting value-added activities, Providing mobile
presentation capabilities, enabling resources to perform tasks via radio frequency
devices customized to their personal needs. SAP-TRM contains several core
integrated packages including Resource Management, Request Management, Task
Management, Route Management, Bin Management, and non-core packages
including Presentation Management, TRM monitor and TRM Alert monitor, and
Archiving. For example, SAP-TRM optimizes Task-resource by determining optimal
routes and prioritizing tasks to be executed by warehouse resources.
Cross Docking: SAPs Cross-Docking Maximizes cross-docking utilization in
warehouse environment in such away customers aim to handle materials more
efficiently and minimize unnecessary material double-handling to reduce cycle
times, inventory and handling costs. In the other word, Cross-docking directly
uses inbound goods for shipping outbound orders by eliminating storage of them
in the warehouse. So, Cross-Docking is fully integrated with Logistics Execution
function via an interface (package LEINT). Upon Cross-Docking and Shipping
integration, the relevant deliveries of the cross-docking transfer orders are
immediately updated after creating and confirming thats. In addition, SAPs
Cross-Docking component is integrated with Warehouse Management and Yard
Management. Cross-Docking provides direct goods movement between the goods
receipt and goods issue areas, or goods receipt to a cross-docking storage type
without putaway occurring in between, firstly. Fulfilling urgent sales orders, or
reducing processes and storage costs is resulted applying SAPs cross-docking.
Cross-Docking leads to several benefits as following:
o Inventory cost reduction
o Material handling cost reduction
o Warehouse storage space
o Cross-docking supports JIT (Just-in-time) operations in a distribution
environment

Benefits:
To make B2B relationship between manufacturer with vendors and
customers in SAP-LE documentation
To determine shipment route in transportation documents based on some
parameters; country, shipping condition, shipping route, shipping type.
To calculate and settle shipment costs based upon standard parameters
such as route, weight, distance and customer-customized parameters.
To create shipment document for foreign trades; goods import and export
which is transferred by different means of transport, directions and routes, and
carriers in the same document.
Effective planning, implementation and monitoring of supply chains
processes such as centralized transportation management of incoming and
outgoing deliveries, multi modal planning, Providing better customer service
through monitoring the transportation, and better cooperation with transportation
agents and real costs.
SAP- Mobile Data Entrys Fully integration with SAP-LE, SAP-WM- Shipment
Ability to use Packaging Instruction to execute packaging process
automatically.
Component allocation capability of a product to HU to receipt/issue the
produced Material from/to production lines.
Bypassing retailers stock, selling and distribution directly to customers
applying Direct Store Delivery
To provide batch management in WM module and track the physical
storage location of the batches.
Ability to calculate costs of the warehouse such as labeling, packaging,
through VAS (Value Added Servicer) component.
Automatically monitoring the storage bin and Issuing a transfer request
without MRP implementation in SAP-WM.
Ability to handle the procurement process for empties (procurement,
returns) alongside vendors and wholesalers via SAP Empties Management.
Container management through handling unit management.
Ability to create transportation chain document for import/ export complex
processes.
 Sales Management in SAP
Sales and Distribution Module is one the most widely used and main modules in
SAP which is associated with the sales processes of an organization ranging from
selling a products/ services to recording sales billings. This module includes core
sales processes, shipping / delivery services and billings creation that integrate
sales organization with customer. SD module has an integrated connection with
activities in financial modules FI (Financial Accounting), profitability analysis
module PA (Profitability Analyses) and other logistics modules such as MM
(Material Management) and PP (Production Planning). The SAP SD module covers
organizations requirement in sales area from project-based organizations to
enterprise-retailer provider.

Applications
Maintain and categorizing customer information based on various
parameters: In many sales organizations, customers are categorized according to
different criteria, including common classification (A, B, C), agents, seller,
distributor, and geographical segmentation which are implemented completely in
SAP systems.
Maintain and categorizing material information: Material information can
be Maintained and classified based on parameters such as taxable sales,
distribution channel, Sales Division, Sales, Product hierarchy etc. in SAP for
reporting purposes.
Presales activities (Inquiry / Quotation) management: Precise management
of all the pre-sales activities such as creating which are negotiated between sales
organization and customers to reach a final agreement on the number and price
of the goods. In the next stage by signing this document into SAP, all sales order
documents can be created with reference to them. It is also possible to provide
time /quantity reports of the inquiries and quotations, which change to the actual
order.
Management of short term/long term contracts and schedule agreements:
In many organizations, the final agreements with the customer based on the price
and number of products in a particular time interval is signed in the form of long-
term or short-term contracts. Generally, contracts are considered as the basis for
future sales order which are created with reference to valid contracts. Another
type of contracts which is mostly used in the automotive industries and part
manufacturers, is as Schedule Agreement. In this contract, the customer sends
forecast and delivery schedule (JIT) plan to the sales organization, which uses it
for its own production planning and delivery plan.
Sales order creation with various price procedures including graduated
price and discounts: Sales order creation is the main part of the sales module in
SAP. Sales orders include variety of types as usual order, cash sales, rush order,
consignment order, free order, contract order, deliver order, service sales,
Telephone sales and etc.. At the time of sales orders creation following
parameters like material quantity, sales price and available stock are determined.
After completion of sales order data, warehouse request for delivering goods to
customers will begin. Common pricing procedures can be easily implemented in
SAP including fixed price, graduated price based on quantity or customers order
value and based on material costs. Management of different value/ percentage
discount policies and based on net / gross value are as other examples of
flexibilities in SAP sales pricing.
Special sales process management: Consignment sales (Billing is issued
based on consumption from customers stock) and Third-party (Direct goods
delivery from vendor to customer) sales are kinds of special sales processes,
which are implemented in SAP.
Inter-company sales processes: Selling and buying processes can be
managed between organizations of one holding via creating a single document so
that in one organization purchase documents and in another organization sales
documents will be generated. SAP-MM is applied in SAP to implement many of the
sales and purchase processes between two companies, and in this regard,
 financial documents includes invoice and billing also automatically recorded. In
addition, planning of this type of buying and selling is conducted in material
requirement planning (MRP).
Service and Project oriented sales processes: In SAP-SD issuing billing
based on services provided to customers are conducted through service sales
processes. Services include providing training or 3rd Party Logistic (3PL) services.
3PL services include providing sale services, renting transportation vehicles,
rental of warehouses which are presented to customers by sales organization as
an income source.
Letter of credit management in export sales: Tracking and monitoring letter
of credit, credit control and information management for export sales order
creation is implemented through SAP letter of credit.
Outbound delivery creation as warehouse notification for collecting and
issuing goods to customers: Outbound delivery document includes all the
information which is needed for implementing and monitoring goods issue
process.
Shipment creation including outbound delivery and vehicle information: All
the information about vehicle, driver, destination, forwarding agents, shipment
cost, date, and time can be registered in shipment document.
Credit management: Managing and controlling the customers credit is
done via determining a customer credit limit and applying it when a sales order/
delivery is created.
Free of charge sales (promotion/ 100% discount): Management of discount
and promotions are done based on various parameters like type, value, and
quantity of purchase which can be applied as free of charge or value discount.
Return order sales: One of the processes which are widely used in
companies for increasing customer satisfaction, is return sales order. In return
process, delivered goods which are already issued to customers are returned to
sales organization for different reasons like quality problem, customer inclination
of receiving the goods, receiving wrong goods. Returned goods are usually
investigated via quality management to check if they have any quality problem or
not.
Customer hierarchy: Customer hierarchy is used for demonstration of
customer structure which are multi-level customer such as cooperative companies
and its retail stores and is used to show the connection between different levels.
Considering the customer hierarchy the possibility of applying sales price policies
like discount is also existed for all the level on the structure.
Direct Store Delivery DSD implementation with mobile solutions for FMCG:
DSD in SAP is used for handling different operations involved in FSCG such as
tour, visit plan, transportation planning, and visit control. Managing the FSCG is
also possible through mobile direct store delivery in SAP.
Advantages:
Flexibility in sales order pricing including complex pricing based on
customer material and promotion,
Item proposal in sales order creation based on sales policies,
Listing/ Exclusion in sales order creation for all the customers or a
customer group,
Applying various sales policies in different customer groups,
Applying sales quota management based on classification like sales office,
sales group or branch,
Controlling of sales contract limit,
Rebate agreement support,
Precise management of customers delivery according to delivery
scheduling,
Managing recall process by following up shipped goods to customers with
batch and serial number management,
 Availability check process for determining sales requirement and checking
available stock in sales order creation,
Reducing lost sales and increasing customer certainty in receiving the
goods on time by running ATP,
Integration with PP module in MRP update and covering sales planning,
Supporting export sales by defining various languages and currencies,
Modifying customers account by creating Credit and Debit Memo,
Managing of customers down payment,
Possibility of issuing billing documents periodically or based on project
milestone,
(Supporting different taxes ( value added, Withholding taxes
Supporting Legal requirement,
Material information maintenance with variant configuration,
Calculating material cost based on cost element at sales order (project
oriented companies) and applying cost-plus policies,
Connection with customers supply systems through Business to Business,
Precise management of return sales order,
Keeping the connection between sales document via Document Flow,
Providing operational reports with sales information system through
saving, integrating and presenting them in different format like crystal report,
excel.