SAP Rollout & SD Module Configuration Tips 20/02/2009
Retail & Distribution ISU/ BOSE Corporation Radhamohan Ramisetty
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Author is TCS SAP SD Module Consultant in Retail & Distribution ISU, currently deputed to TCS US on BOSE Corporation SAP project since July 2007. He has worked on SAP rollout projects for countries - Australia, China, Hong Kong, Taiwan,India and currently involved in BOSE Japan country Rollout. Prior to this, he has worked on SAP Implementation and support project for Eimskip client - Iceland, UK and Netherlands. Before Eimskip, he was project lead of Cadbury Schweppes F&B Australia support pack implementation project in TCS Mumbai. Any questions & concerns on this document can be sent at my email id –
[email protected]
Contents
1) Objective 2) What is Rollout? 3) Key challenges 4) Key points 5) SAP Configuration on core areas 6) Hints, Tips and Important points
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Objective Purpose of this document is giving an understanding of SAP Rollout, Key challenges etc. In addition, this document covers some Hints & Tips in Sales & Distribution module (SD) configuration for Rollout purpose. This document is not intended to discuss all SD Module configuration steps and focus is only on core SAP SD steps with respect to Rollouts in Regional countries and all SD areas might not covered.
What is Rollout? SAP Rollout is a process of rolling out the Global template business processes across the geographies. It is like configuring SAP in Regional countries of an organization which has spread & operates from across several countries in the world.
Rollout in other Regional countries is usually SAP Configuration through following the Global business blueprint using Global template Roadmap. SAP Rollout aims at aligning the Global standardized business with local processes.
A Global template is actually developed during SAP implementation at the main base location of country or at their head quarters of an organization.
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Key challenges:
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Alignment of Global business template with Local/ Regional countries business requirements Non-uniformity in business processes among several countries for same organization
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Cultural, Language, Time zones and Communication differences
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Different Legal, Audit, Government and Statutory compliances
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Local Reports & FORMS requirements
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New Functionality
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Different Pricing & Tax structure
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Technical Infrastructure
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Acceptance by Local teams
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Existing Interfaces & Software in use by Local countries
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Harmonizing Customer & Vendor Master data
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Key points:
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Global business template is helpful to understand existing SAP business processes in the organization Global business team & SAP core team interacts with Local (Regional countries) business & local SAP team during workshops & meetings to explain Global business process and to collect Local requirements Gaps & additional requirements will be identified which leads Gap documents creation Gap documents will be reviewed by Core teams to analyze & assess local requirements Process wise Global template extension documents can be prepared to document the existing solution in Global template and TO BE changes for local requirements FRICE is the key process for documenting Technical requirements F – Forms – New FORMS R – Reports – New Reports I – Interfaces – ALE’s/ Idocs / XML files C – Conversion – BDC’s & LSMW’s etc. E – Enhancements – User-exits / BADI’s
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Configuration Document has to be prepared on all SAP Configuration changes done for local countries. This document will explain step by step configuration changes. SAP Solution Manager can be used to upload all documents and monitor the progress and project plan
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Documentation
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Knowledge transfer
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SD Configuration tips: Here, configuration is already done for base country and we will discuss some touch points for Rollout.
1) Sales Organization: Regional countries will have to be defined as new Company codes in SAP. In each country, at least one new Sales organization to be created with reference to existing Sales organization
This new Sales org. is to be assigned to respective company code from Assignment
2) Distribution channel & Division: If Common DC & other required DC’s are already exist / used in Global template, no need to configure in Local countries, unless new required by local countries. If Common Divisions & other required are already exist / used in Global template, we don’t need to create new divisions for local countries, unless specific requirement. Important: Existing DC’s & Division from Global template need to be assigned to new Sales org. defined for local country
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3) Setup Sales area: Sales area need to be setup for local countries for each combination of local country Sales org – DC – Division (NewXX10/10/00)
4) Sales office & Sales group: Global template Sales offices can be used for local countries and mostly no need to create new Sales offices, unless specific local requirements But, Sales groups are most specific to local requirements and have to be defined using the Global template and naming convention to be followed country specific.
Naming Convention Hint: During SAP Rollout project Global template preparation, certain guidelines are formed or will be used for Naming convention in different countries. Consultants need to follow the proper naming convention as per specific guidelines for uniformity.
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New Sales offices to be assigned to Sales area & Sales groups to be assigned to Sales office
5) Shipping points:
We have to define new Shipping points for local countries based on defined new Plants in SAP. Shipping points are we have to identify shipping point requirements from local country business core team. SD Consultant need to interact with MM Module consultant to understand new plants defined for local countries.
Shipping points are generally country specific and based on physical location from they (local countries) ship from. These new shipping points to be based on new Plants defined for local countries (Plants are generally defined by MM consultants)
Client specific Naming convention be followed
Loading point & Transportation Planning points are optional, based on Global template design
6) Assign new Shipping points (of Local countries) to new Plants created for local countries:
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7) Assign Plant to Sales org – Distribution channel:
Once new Sales org & Plants are defined in SAP for local countries, we have to assign Sales org & Distribution channel combination to new Plants
Tip: Here, we have to assign new Sales org unit (XX10) to new plants of that local country. Sometimes, local countries ship goods from plants from other country or other Sales org unit. While, we assign plants to Sales org & DC, we need to consider the requirement.
8) Assign Sales area to Credit control area: Before this, we need to define Credit control area, which is a very simple step. This is to be defined same as Global template. A credit control area looks like this:
9) Master data – Define Common Distribution Channels
If Global process template supports using Common Distribution channels, we need to define the same for all Regional countries sales org. units to minimize cost of creating and maintaining master data.
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10) Define Customer group fields (Maintain Reserve fields in Customer master):
We may need to maintain additional fields in customer master for any Financial Reporting purpose in Regional countries. These are the Reserve fields in the customer master record, which are not used in the standard system and will be used based on local requirements.
11) Define & Assign new Sales order types:
Regional countries may have new Sales document types other than from Global business template like Cash order, Rush order etc. These new document types can be defined through Sales document Header
In the same sequence, we can define number ranges, order reason etc.
12) Assign Sales area to Sales document types:
This is important, to define whether all sales document types of Global template are required to be used for all Regional countries.
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Once we complete Combine steps, we have to Assign Sales order types permitted for Sales areas:
In this table, we need to assign only sales document types relevant for each country Sales org.
Tip: This is to avoid unnecessary use or access of all Global process sales order types for different local countries. If US10 defines multiple document types, each country may require some or all of them.
13) Define Delivery document types:
Existing Global template Delivery types can be used. No need to perform any configuration settings, unless new document types required. New Delivery document types only are defined, if required for any local countries Delivery process.
New Delivery types creation leads to creation of - Delivery Item categories, Number Ranges, Define split criteria etc. in the same sequence.
14) Define Billing document types:
Global template Billing document types can be used for local countries, unless specific new document types required for new document types. We don’t need to perform any configuration settings.
Define number ranges for new Billing document types, Copy control settings, Blocking reasons follows based on local requirements
Hint: There are some country specific settings to be done for Argentina, Brazil, Italy, Switzerland etc. Consultants need to consider these settings for Rollouts in these countries.
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Payment card: If any additional Payment cards types from local countries, to be defined, if Global template design not covered. Standard SAP system contains 3 card types – AMEX, VISA and MASTER Card.
Rebate processing: If Global process template uses Rebate process, it is to be activated for Regional countries Sales org. units through “Activate Rebate processing”. New G/L accounts to be defined for Rebate processing in local countries.
15) Credit Management:
We have to do some settings here – a) Assign new sales & new delivery documents of local countries to Credit groups b) Define Automatic credit control settings for local countries Credit control areas (Define CCA is explained above step no.8)
Define number ranges for new Billing document types, Copy control settings, Blocking reasons follows based on local requirements
Hint: There are some country specific settings to be done for Argentina, Brazil, Italy, Switzerland etc. Consultants need to consider these settings for Rollouts in these countries.
16) Shipping conditions:
We will need to create new shipping conditions & Loading groups for local countries after analyzing their shipping strategy for delivery of goods to the customer
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New sales document types to be assigned with shipping conditions
Important: It is very important to do Shipping point Determination configuration settings for Local countries through Assign Shipping Points step:
Here, we have to assign entries with combination of shipping conditions, loading group, Plant, Proposed shipping point and Manual shipping point (optional).
17) Routes:
Routes & Route Determination is another important area, which is mostly country specific and we needed to do several config settings.
Here, touch points are everything right from Defining Routes, Route Determination and Route schedule Determination. Consider carriers, Transportation groups, Transportation zones, Weight groups, Calendar, shipping conditions, Transit times, Shipping process in local countries.
Hint: We need to use Route determination Load program to load entries into SAP system. Due to the huge volume of these entries, it is necessary to use Load program.
18) Output Determination:
Outputs are another most important area, as we need to create new output types for Regional countries, even though we have those outputs available in Global business template.
Example: Global business template may have several output types for Sales, Shipping, Billing areas. But, still we need to create separate output types for each country requirements.
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FORMS: However, Smart forms are different for each country, which is a development effort. New output types will be assigned to these FORMS
Hint: We don’t need to create new Output procedures, unless required by customer and Regional countries outputs can be assigned to Global business template output procedures.
19) Availability Check: We have very minimal settings to be done here for local countries. Availability check is one of the areas which is followed Global process template.
We have to define Default settings for Availability check through below step. This is to be done for all Regional countries Sales areas.
20) Pricing;
This is the area, where one consultant has to spend more time in Rollout process, due to the different pricing & tax requirements for different countries.
We have to analyze local countries pricing model in their business like Material prices, Customer, Dealer, Retail prices, Different discounts, Promotions, deals etc.
It is a very good idea to develop new Pricing procedure for local countries by following Global business template pricing model. If Global pricing model is using price lists, price groups, then we have to create separate price list, price groups for Regional countries.
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Hints & Tips on Pricing:
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Avoid creating new condition types, unless necessary. Try to leverage existing condition types from Global business template There might be several condition tables created for Global business template with multiple combinations – These can re-used New pricing procedure naming convention to be followed Access sequences are sensitive area, where we have to take utmost care in not interrupting existing Global business template sequence, which may cause pricing determination errors Tax condition types are a must for local countries, due to different taxes
Conclusion: In addition to above configuration, we may have to configure many other processes in SD for Rollouts, which depends on Global process template & Local process requirement. We may have to work on lot of Interfaces and development in addition to basic configuration. It is client specific and purpose of this document is to give some overview of SAP Rollouts from SD Module perspective.
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