Integration With Materials Management Dan Sales Distribution

8/8/2019 Integration With Materials Management Dan Sales Distribution

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Integration with Materials

Management

Plants

Purchasing organizations

MM view of vendor master record

Purchase order, goods receipts, invoiceverification


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The central organizational object in Logistics in the plant. Multiple plants be

contained in a company code. That is, they are assigned to the same companycode.

IDES company code 1000 (Germany) contains, for example, the plants:

1000 (Hamburg)

1100 (Berlin)

1200 (Dresden)

1300 (Frankfurt)

1400 (Stuttgart)

All company-code relevant transactions from these plants are posted in

company code 1000.


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Purchasing for the plants is completed by the purchasing

organization. Each country, in which IDES plants operate, has one

purchasing organization. They purchase for all plants in the country

and post the purchases in the company code of that country.

In Germany, for example, purchasing organization 1000 takes care

of purchasing for all German plants (Hamburg, Berlin, Dresden,Frankfurt, Stuttgart). Postings are made in German company code

1000.


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The purchasing organizations purchase goods and services

from suppliers, who are paid by accounts payable. The

various purchasing organizations of the group have to enter

data specific to purchasing in the vendor master record

before the supplier's master record can be used.


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The three-step verification is the standard procedure for postingprocurement transactions in FI. The procedure contains thefollowing three steps:

Creating a purchase orderThis transaction is completed in MM. No postings are made in FI.

Goods receiptTo update the inventory, a material document is created in MM. At the sametime, a document is created in FI, with which the value of the goods is postedto the materials account (debit) and the goods receipt/invoice receipt account(credit) in the general ledger.

Invoice receiptThe vendor invoice is posted in MM, which automatically creates a documentin FI. The FI document contains the invoice amount that is posted to the goods

receipt/invoice receipt account (debit) and the vendor account (credit).

The last two steps can be completed in reverse order, dependingon the order the goods and the invoice are received.

The goods receipt/invoice receipt account ensures that goodswere received for each invoice and vice versa.


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Integration with Sales and

Distribution

Sales organization, distribution channel, division

SD view of the customers master record

Sales, shipping, billing


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The sales organizations are legally responsible for sales in R/3. Onecompany code may contain several sales organizations. The IDEScompany code 1000 includes the sales organizations 1000 (Frankfurt) and

1020 (Berlin), for example. This means that any accounting-relevanttransactions in either of these sales organizations are posted in companycode 1000.

Each sales organization can use different distribution channels to sellgoods. In principle, a distribution channel can also be used by twodifferent sales organizations. Distribution channels used by IDES are:

Final customer sales

Resellers

Service Factory sales

Store chains

Industrial customers

Pharamceutical customers

The combination of a sales organization and a distribution channel is alsoknown as a distribution chain.


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Distribution chains sell goods from the plants. Both of the IDESdistribution chains, 1000-10 and 1000-12, sell goods from the IDES plant

in Hamburg and post the sales in IDES company code, 1000, which isalso assigned to the plant.


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Materials are divided into divisions in the R/3 System so that a largevolume of different materials can be managed and processed more

efficiently. The IDES group uses the divisions motorcycles, paints, andfoods, for example.


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The divisions are assigned to the distribution chain from which they can be sold.The combination of distribution chain and division is a sales area.

Customer-specific arrangements, regarding partial deliveries or terms of payment,

for example, can be made for each sales area. Statistics can be created andseparate marketing activities carried out within a sales area.


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A sales area (combination of sales organization, distribution channel,and division) must define sales area-specific settings for a customer

before it can start doing business with that customer. These could bespecial conditions and terms of payments that the customer hasarranged with the specific sales area.


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The sales order forms the basis of the sales process. Once a customer has placedan order, a sales order must be created at the start of the process. The sales order

is generated at the distribution chain level. The ordered items can be fromdifferent divisions. The sales order is a document in SD and does not cause any postings in Financial Accounting. When the sales order has been entered, thesystem carries out an availability check for the required delivery date.

On the day of shipping, an outbound delivery document is created. Billing forthe delivery can only take place when the goods have been taken from thewarehouse stock and posted as a goods issue.

The warehouse management function is used forpicking. A transfer order has to

be created, which generates the pick order. The requested goods are taken fromthe warehouse and prepared for delivery.

The goods to be delivered are posted as a goods issue. A goods issue documentis created in MM, and an accounting document is created in FI so that the goods

issue is posted to the correct G/L accounts.

The last stage in the sales process is billing. A billing document is created in SD,and a printed invoice is sent to the customer. At the same time, a document iscreated in FI so that the receivables and revenues can be posted to the correct

accounts.

Integration With Materials Management Dan Sales Distribution

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