Different Sales Processes

[Former Member]

Hello All,

Can somebody share some material, links to know about the following processes and how they are handled in SAP?

1) Sales from manufacturing industries--direct sales, depot sales, export sales, deemed exports sales etc., These are categorised into Make to Order and Make To Stock.

2) Sales from Trading Company

3) Sales from Distributors

As am new to SAP-SD, it would be great if people share their experience and knowledge..

Thanks,

Viren.

[Lakshmipathi]

Dear Viren

I believe in continuation of this thread, this doubt has arised

[knowledge on SD module |;

Anyway let me give you a brief explanation on these.

Sales from manufacturing plants, as you would be aware, if a product is produced, it should be sold to appropriate market. So the manufacturer b4 starting production, they will have to decide, which particular market they are going to target. Whether for local market, export market etc., If it is for local market, they have to apply marketing strategy as to how their products should reach the end customer. If it is for export, which country the demand for the product which they produce would be more. Like this, they have to decide.

There are many ways and means to reach the public once a product is produced. For this, the manufacturer may opt for the options already listed above.

Second and Third are mainly depends on first one. Of course, there is a slight difference between trading business and distributors. Trading business is they buy material from one market and sell it in the other market, whereas, Distributors are authorised by the manufacturers, who will fix a sales target to achieve and enjoy the benefits of distributors.

Hope this explanation clears your doubt to some extent.

thanks

G. Lakshmipathi

[Former Member]

Hi ,

1. Direct sales: the company sales the stock directly from the company.

2. depot sales. In sap the depot is treated as plant. means the company once manufacture the stock place the stock to depot. actually according to the excise , when any material leaves the company they have to pay excise duty. here the company transfer the stock to depot from there the direct sales take place to the customer. so the company need not to pay two time excise duty. for this we need to update the excise register RG 23D.

take the

3.exports: by the name itselft, we are sending the material which cross the country ie international sales.

4. deemed export: the international sales take up with an intermediate say forwarding agent.

5.Trading : in this company will not manufacture the stock , they are the intermediate take and sell the stock to the customer take only the commission.

6.Distributors: the sales through the outside intermediate in sap called distribution channel.

Thanks

Kuntla