Presentation on Sale /
Distribution and
Financial Account

Presentation on Sale /
Distribution and
Financial Account

KHAADI
OBJECTIVE

PAPER LESS ENVOIREMENT
ACCURACY
TIMELINESS
DATA MANAGMENT

KHAADI
Sales & Distribution
(SD)

6
SAP R/3 SD module
• SD: Sales and Distribution
• Integrated with:
• Materials Management (MM)
• Costing (CO)
• Financial Accounting (FI)

Supply Chain Process
Customer Order Picking Goods Issue
BillingAccounts ReceivableFinal Payment

SD Master Data - Core Elements
Master
Data
Pricing

SAP Process Steps
Sales
Order
Sales
Shipping Delivery
Note
Post Goods
Issue
Billing Billing
FI
A/R
Post
Incoming
Payment
A/R

CROSS DIVISION
STITCH
UN_STITCH
HOME
FURNITURE
SERVICES
SCRAP
OTHERS
SALE ORGANIZATION
KHAADI UNIBRAND
LOCAL EXPORT OTHERS

Business Partners
• The system creates these four business partners by
default. All four are required.
• All four may be the same or may be different.
• Since these are automatically assigned partners
you may need to add additional partners to carry
out your business transactions.
Sold-to Ship-to Bill-to Payer

Business partners — Sold-to
• Customer that orders
the goods
• Can perform all
primary partner
functions — sold-to,
ship-to, payer, bill-to
Sold-to
Ship-to
Bill-to
Payer

Business partners — Ship-to
• Party that receives the
goods
• Can be created as an
independent partner
and linked to one or
more sold-to partners
Sold-to
Ship-to
Bill-to
Payer

Business partners — Bill-to
• Party that receives the
invoice
• Can be created as an
independent partner
and linked to one or
more sold-to partners
Sold-to
Ship-to
Bill-to
Payer

Business partners — Payer
• Party that sends the
payment
• Can be created as an
independent partner
and linked to one or
more sold-to partners
Sold-to
Ship-to
Bill-to
Payer

Shipping Overview
Order
Order
Order
Delivery
Order
Combination
Order
Delivery
Partial
Delivery
Delivery
Order
Complete
Delivery
Delivery
Delivery

Billing Methods
Separate invoice
per delivery
Delivery
Order
Delivery
Invoice
Invoice
Delivery
Order
Delivery Invoice
DeliveryOrder
Collective
Invoice
Order Delivery
Invoice
Invoice
Invoice
Split

PRICING
• Pricing is carried out automatically based on
predefined prices, discounts, and surcharges
• Cost plus margin

19
Document Flow
Order Delivery Invoice Accounting
Document Flow of a Sales Order
Order 900
. Delivery 50000672
. . WMS transfer order 100000828
. . GD goods issue: delivery 40000184
. . Invoice 90000376
. . . Accounting document 100000269
• The sales order management process consists of a chain of steps. Each
step in the process causes the creation of a document which can be
used to track the progress of the sales order. All changes to documents
(sales orders, delivery, etc.) creates a document to keep track of the
changes.

Customer Returns
Return
Order
Goods Receipt
Quality Inspection
Credit Memo

Customer Returns
Order Delivery Invoice
Returns
DeliveryReturn
Credit
Memo
1
2
3
Return to
Inventory

Customer Returns
• Returns document
– Billing block can be proposed
– Use the Order reason field to identify the reason
for the return
– Full access to pricing and ability to re-price
• Return delivery
– Issues a goods receipt to place material into
inventory

Customer Returns
• Credit memo
– Billing block must be cleared from Return
– Posts to FI

SALE EXPORT
• Export documents will be made in SAP except
packing list

KHAADI
FINACIAL
ACCOUNTING

FI Overview
FI
AP
ARCM
GL
FM
ASSETS
MANG

ACCOUNT PAYABLE

KHAADI
ACCOUNT PAYABLE
P R
MANUAL
Automatic
BOM
Reorder point
PO
Release
G.R. AT gate
(block Stoc)
Q.C.
GRN
Return
Debit Note
Clearing A/C
INVOICE
Parking
Posting Liablity

After approval F&A can select
invoices for payments
Cheque will be printed electronically
After posting the payment , vendor
liability will be updated and aging
will also maintained as per terms and
condition of PO
Sales tax and withholding tax will be
adjusted automatically

Sales Tax and Withholding Tax
• System will automatically calculate sales tax at
the time of liability and withholding tax at the
time of payment.
• All sales tax and Withholding tax reports will
also be automatically generated as per income
tax and sales tax requirement.

Advance payment and Adjustment
• Advance can be given against any purchase order
• PO number will be maintained in system
• At the time of payment or adjustment, all
advances will appear in system
• Advance will be selected and which will be
deducted from payment automatically
• Advance to vendor will be reported in Balance
sheet as an assets.

Account Receivable

Account Receivable
• Invoices related to sale order will directly
recorded from SD module.
• Non sale order invoices will be recorded directly
in FI. i.e.
• Sale of fixed Assets
• Others like scrap

Bad debts can be maintained
Advance and partial payment can also
be recorded against any invoice.
Income tax deducted by party will be
recorded at the time of payment
received (If any)
Sales tax withholding will be recorded
at the time receivable.

KHAADI APRIL-14
• CASH AND BANK MANAGEMENT

BANK PAYMENT
• Cheque will be printed along with detail of
invoices and deductions.
• Bank reconciliation will be prepared
automatically through system if Bank statement
file available in MT 940.

BANK PAYMENT
• Void cheque detail can also be maintained in
system like
• Test print
• Paper over flow
• Wrong cheque
• Payment cancel
• etc.

CASH PAYMENT
• Payment against any PO can be made
• Advances also can be given
• Cashier will maintain cash journal
• As F&A approve the same it will be posted

CASH PAYMENTS
• Cash receipt can also be received in SAP
• Daily cash journal will be posted by cashier after
confirmation of F&A
.

WAGES AND SALARY
• Detail of Staff advances , loans and credit sale
will be maintained in HR software.
• Wages and salary will be uploaded along with all
details from HR module in SAP.

KHAADI
FIXED ASSETS

ASSETS CLASSIFICATION
•Tangible Assets
• Lease hold Land
• Factory Building
• Office Building
• Plant and Machinery

ASSETS CLASSIFICATION
• Furniture ,Fixture and Fitting
• Computer and accessories
• Office Equipment's
• Vehicles

ASSETS CLASSIFICATION
• In Tangible Assets
• Arms Licenses
• Computer Software
• LOW VALUE ASSETS

AN ASSETS NUBER WILL BE GENERATED
IN SAP
BAR CODE WILL ALSO BE
RECORDED IN SAP
STRAIGHT LINE METHOD WILL BE USED
FOR DEPRECIATION.
TAX DEPRECIATION WILL ALSO BE
MAINTAINED IN SAP.

Depreciation will be charged according
to Cost center.
Revaluation of assets option is
also available

Assets Retirements
• Assets retirement means removal of any assets
from Fixed Assets.
• An assets can be
• Sold with revenue
• Sold with no revenue (Scarp)
• written off
• retired due to insurance claim

TRANSFER ASSEST
• Change of Cost Centre
• Change of Location
• Change of Assets Class

CWIP
• AUC (Assets under construction)
• Project wise AUC will have to be created
according to nature of cost.
• AUC will be transferred to fixed assets upon
completion.

KHAADI
FUND MANAGEMENT/BUDGET

FUND MANAGEMENT
• It is very critical and important as well
• Budget can be made in value not in quantity
• Budget can be consumed either on PR , PO or
GRN
• Budget can be caped on any certain % for soft
stop.

FUND MANAGEMENT
• It is right time to start the exercise for
preparation a budget with the help of Unit Head
and department head. The budget should be
made department wise along with location.
• The final budget should be signed off by Unit
Head
• Every month, the variance should be discussed
with Unit Head.

In flows are always allowed in
budget
Available budget can not be used
till released
Tolerance factor can be used

Fund Management
• Some expenses can be made un limited i.e.(If
allow)
• Utility expenses
• Tax payment / Govt. dues

BUDGET
• Original Budget
• Supplementary Budget
• Return Budget

KHAADI
General Ledger

Functional Area
• For profit and loss account following functional
areas are suggested.
• Sales
• Cost Of Sales
• Other Operating Income
• Distribution and selling expenses
• Administration Expenses

Functional Area
• Other Operating Expenses
• Research and development
• Financial Charges
• Taxation

Profit and Loss Account
Following types of P&L can be made
• Location wise
• Segment wise (Concept wise)
• Consolidated
• Balance sheet will also be made location wise.

Process flow for opening Chart Of
Account
• Finance Department will prepare the request
• Audit will verify the same
• IT department will update the code master
record.

AUDIT STEPS
• After implementation the ERP,
• PO will be audited
• After that no document need any audit, only
payment will be audited.
• Payment voucher along with supplier invoice and
cheque will be submitted to Audit.