How to track the Distributor in SAP

[Former Member]

Hi all

One of our client has a particular requirement, let me explain....

Let's say my client sold 100 qty. to the Distributor, again the distributor lets say have five Sub-Distributor and suppose to distribute the 100 Qty. among the five Sub-Distributor in particular proportion advise by my client as per the distributorship agreement.

Now the distributor is sending a report in Excel Sheet that they have distributed the 100 Qty. as advised by my client.

BUT my client wants first of all to ensure that the distributor has distributed the 100 Qty properly also wants to cross check it from Sub-Distributors.

Please Suggest

How to map this scenario in SAP

Thanks

Ashok

[Former Member · Accepted solution]

Hi Ashok,

The document in the SAP system where indirect sales are registered is called the "pendulum list".

Indirect sales are mapped in SAP as dummy (proforma) billing documents.

These billing document can be used afterwards to pay rebates to the final consumer AKA "sub distributor" in your case.

The whole process is explained in the following best business process documentation:

http://help.sap.com/bestpractices/BBLibrary/html/G73_ExtRebProcPend_EN_DE.htm

My personal experience is that the pendulum list implementation in SAP is definitely not easy, additionally the technical documentation for implementation is lacking / confusing.

Best Regards,

Franck

[Former Member]

Thanks all

[Former Member]

As per my understanding the physical movement of stock is from your client to Distributor. It is in the control of Distributor of distribution to sub-distributor (physical movement of stock from Distributor to sub-distributor and not from client to sub-distributor). If the understanding is correct, Consignment scenario will not meet the objective.

In such cases, ideally the distributor should have SAP system, in which he carries out relevant transaction and the visibility of the same should be available to the client. It actually works in a manner such that the control will be with the client. There will be dummy company code. All Distributors will be mapped as Sales Organization & through authorization will have access to only their Sales Organization. Financial transactions are overlooked as they are at company code level, but inventory visibility can be controlled in such a manner. The reason the clients are not ready to invest in such projects is that it is a cost to them from licencing point of view and Distributors are not religious to carry out the activities in the system due to lack of interest or staffing reason.

Reagards,

Rajesh Banka

[ajitsingh6]

Dear,

As suggested by Laxmi u can use Consignment sale in which u will create Consignment fill in which u will keep Sub

Distributor as SOLD TO PARTY and Distributor as SHIP TO PARTY.

Regards

AJIT K SINGH

HAPPY TO HELP U

[Lakshmipathi]

In this case, you have to go for consignment fill up process where you can treat the sub distributors as sold to party and distributor who receive material from your client can be considered as ship to party.

This is a standard SAP process and you can track how many quantities have been delivered to sub distributor.

thanks

G. Lakshmipathi