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Sales & Distribution

Business Blueprint

Submitted to

AGI Glaspac


Wipro Ltd.
April, 2008
Version 1.0

.. .
Executive Sponsor Date

Wipro Program Manager Date
AGI Project Manager Date

Wipro Project Manager Date

Wipro Consultant Date

Wipro Consultant Date


Project Name Document Name Document Location
Glasap SD Business Blueprint Project Manager


Version Document
Date Author Reviewed
1.0 SD Business
05/05/2008 Manish



1.2 Business Blueprint Overview 11
1.3 Implementation Scope 14
1.3.1 Geographical Coverage 14
1.3.2 Functional Scope 14
1.3.4 Standard Sales Processing in SAP 17
1.3.5 General Settings 24
1.4.2 FI - FINANCIALS 27
2.1.1 Company Code 30
2.1.2 Credit Control Area 31
2.1.5 DIVISION 33
2.1.6 SALES AREA 35
2.1.9 SALES GROUP 37
2.1.10 PLANT 38
3.1.1 General Data 43
3.1.2 Company Code Data 43
3.1.3 Sales and Distribution Data 43
3.1.4 Customer Account Groups 43
3.1.5 FSBP LINK 44
3.2.1 General Data 45
3.2.2 Sales and Distribution Data 45
3.4.1 Customer Groups 47
3.4.2 Material Groups 47
3.6.1 Terms of Payment 49
3.6.2 INCO-terms 49
3.6.3 Sales Tax Code 50
3.6.4 Tax Relevancy of Master Records 50
3.6.5 Account Assignment 51
3.6.6 Master Data 51
4.1 Pre-Sales Handling Inquiries 53
4.1.1 Purpose 53
4.1.2 Master Data 53
4.1.3 Features for AGI 53
4.1.4 Business Process 54
4.1.5 FSBP LINK 55
4.2 Pre-Sales Handling Quotation 56
4.2.1 Purpose 56
4.2.2 Master Data 56
4.2.3 Features for AGI 56
4.2.4 Business Process 57
4.2.5 FSBP LINK 58
4.3 Customer Contracts 59
4.3.1 Purpose 59
4.3.2 Master Data 59
4.3.3 Features for AGI 60
4.3.4 Business Process 60
4.3.5 FSBP LINK 61
4.4 Sales Order 62
4.4.1 Purpose 62
4.4.2 Master Data 62
4.4.3 Features for AGI 63
4.4.4 Business Process 65
4.4.5 FSBP LINK 66
4.5 Delivery 68
4.5.1 Purpose 69
4.5.2 Master Data 70
4.5.3 Features for AGI 70
4.5.4 Business Process 70
4.5.5 FSBP LINK 73
4.6 BILling 74
4.6.1 Purpose 74
4.6.2 Master Data 74
4.6.3 Features for AGI 74
4.6.4 Business Process 75
4.6.5 FSBP LINK 76
4.7 Stock Transport Order 80
4.7.1 Purpose 80
4.7.2 Master Data 80
4.7.3 Features for AGI 80
4.7.4 Business Process 81
4.7.5 FSBP LINK 81
4.8 Sales Returns 82
4.8.1 Purpose 82
4.8.2 Master Data 82
4.8.3 Features for AGI 83
4.8.4 Business Process 83
4.8.5 FSBP LINK 84
4.9 Credit Management 85
4.9.1 Purpose 85
4.9.2 Master Data 85
4.9.3 Features for AGI 85
4.9.4 Business Process 86
4.9.5 FSBP Link 86
4.10 Country India (CIN) Version 87
4.10.1 Purpose 87
4.10.2 Master Data 88
4.10.3 Features for AGI 88
4.10.4 FSBP LINK 101
4.11 Customer Feedback 101
4.11.1 Purpose 102
4.11.2 Master Data 102
4.11.3 Features for AGI 102
5 Standard Information system 104
5.1 Purpose 104
5.2 Features 104
5.2.1 Standard analyses 104
5.3 Annexure 1-ENHANCEMENTS/GAP 107



AGI Glaspac is a 227 crore SBU of HSIL (Hindustan Sanitaryware &
Industries Limited) (2006-2007, financial year) dealing into glass Products.
It operates through its head-office in Hyderabad and has manufacturing location in
Hyderabad as well as Bhongir.

AGI contributes approximately 49% to HSIL turnover.

In terms of brand share, AGI enjoys 15% of national market share and has
Institutional Buyers in the FMCG; Liquor; Beverage and Pharmaceutical Industries.


The company has developed in-house capacity for Mould design on CAD facility and
Mould manufacturing capacity using CNC machines. These critical capacities enable
the Glass Division to cut down the product development time and helps in providing
new bottle designs to its customers in the shortest possible time.
The company has completed a major modernization and expansion program, which
includes a large captive power plant, to further improve its competitiveness in
quantity and quality parameters.
This commitment for expansion and modernization further reinforces the value
system that believes in making no compromises in quality and offers the customers
total value in the products.
The state of art facility possesses a capacity of 953 mn containers per annum and
the capacity to manufacture 400 different products in multiple colors.
The company took following initiatives during the year(2006-07) to counter cost

1. Energy efficiency- (reduce fuel consumption)

2. Operational Efficiency

3. Captive Mould making Capacity- Retain the capacity to develop a new mould
in a short time, quicker than the industry.

4. Plant Versatility- Capacity to make different designs and colours with minimal
downtime, enables the company to respond to sudden demand changes from
its downstream users, especially those catering to FMCG needs with minimal
inventories at their end.

The glass division of Hindustan Sanitaryware and Industries Ltd. which commenced
its operations in 1972 is ISO - 9001 certified for its Quality Systems.

The companys three stage quality control system is continuously audited by
external agencies and customers. The entire output was subject to a thorough
visual inspection and formalized process of quality clearance prior to dispatch.

The quality function liaises between its Marketing and Production departments,
communicating the need of the external market with internal availability. Going
forward, the department aims to improve the product quality through the
introduction of software leading to an automated analysis of findings arising out of
visual inspection, leading to informed rectification.

Marketing and Distribution

In (2006-07), the division provided 15% of the total production of container glass
in India. It serviced close to half of the Southern Market. The company also catered
to the growing needs of customers in USA, Africa and Asia. Owing to its diverse
400-product portfolio, the companys customer segment was spread across
different industries. The products were distributed within India through a network of
Sales Offices in six pan-Indian locations.

1.2Business Blueprint Overview

This document summarizes the findings of the Wipro consulting team and AGI
Glasap Team, with respect to SAP processes to be implemented in AGI Glaspac.
Following activities were carried out during different phases of the project.
CSBP-Current State Business Process Mapping
AGI Plant Visit
FSBP-Future State Business Process Mapping
GAP Analysis
Stakeholders Workshop on various Modules
Master Data Workshop

The information was gathered through above activities carried out during different
phases of projects ie; reviews of business processes, business procedures,
documentation and relevant reports.
The purpose of Business Blueprint document is to prepare to move forward with the
implementation of AGI SAP R/3 system. At the conclusion of the blueprint, the
Wipro consultants will determine the SAP functionality required to run the AGI
The Blueprint and its associated appendices present a summarized perspective of
all functional business processes that will be implemented. As such, the Blueprint
document will serve - from this point forward the dual role of both official project
scope as well as system acceptance criteria.
The body of this document describes the organizational structure, Master Data, and
R/3 functional process flows to be implemented at AGI. Generally, requirements
that can be met using standard R/3 functionality through routine configuration
tasks are not explicitly documented. However, certain key requirements are
explicitly identified and summarized to highlight their importance to AGI and to
document the approach proposed to meet the requirement.
One section of the document summarizes identified gaps. The project team has
discussed this list with agreement on the approach going forward. Acceptable
approaches may require:
Additional programming or technical effort

Recognition and acceptance of procedural changes ("Workarounds") using
standard R/3 Additional resource commitment
Deferral of a feature to a later phase
Recognition and acceptance of a limitation.

The Blueprint reiterates the R/3 organizational structures that have been identified
and will serve as the basis for the initial configuration activities. No significant
configuration and customization choices have been identified that will prevent the
future implementation of additional capacities within the R/3 environment.
The information gathered and documented in the Blueprint is sufficient for the team
to go forward into the Realization phase. However, it is critical that (Wipro and AGI
) Glasap team agree on the scope of the project as presented in this document.
Acceptance - by both teams - is required to move the project into the next phase.

1.3Implementation Scope

1.3.1Geographical Coverage
The following units are within the scope of SAP Implementation at AGI:


1.3.2Functional Scope

Central Marketing Department in AGI is responsible for the sales and marketing of
finished goods. It is also responsible for sales planning, order execution along with
Logistics (Warehouse Dept.) and co-ordination with Sales Accounting group, which
processes accounts receivables and sales accounting functions of invoicing,
taxation, documentary payments and credit/debit notes etc.

AGI has a sales network of 12 Sales offices (Hyderabad-I, Hyderabad-II,
Hyderabad-III, Hyderabad-IV, Hyderabad-V, Mumbai, Bangalore, Chennai, Kolkata,
New Delhi) spread across the country responsible for order logging and customer
management in their respective regions.

The integration of Sales with Production Planning is through the Manufacturing
program, which passes customer requirements to planning with delivery schedules
to ensure timely and smooth production processing. Logistics department under
Warehouse handles the delivery processing of finished goods after handover from

Corporate office and Manufacturing facility is located at Motinagar, Hyderabad
(Andhra Pradesh) . Bhongir Manufacturing unit will be operational soon.


AGI has distinct product lines broadly categorized Color wise as Amber, Flint &
Green catering to business segment Pharmaceuticals, Food Items, Soft Drinks,

AGI customers are typically Pharmaceuticals, Liquor, Soft Drinks and Food Items
related organization. AGI Major chunk of Sale is to direct Customer but they are
also selling through Commission agents.

Master Data
Customer Material Info



Order Fulfillment
Sales Order

Logistics Execution
Outbound Delivery
Post Goods Issue

Billing Document
Stock Transfers

Returns and Complaint Handling

Credit Management

Country India Version

Foreign Trade (Deemed & Direct Export)

Payment Guarantee
Financial Document

1.3.4Standard Sales Processing in SAP

The SD module allows executing different business transactions based on sales
documents defined in the system. These sales documents are grouped into four

Pre-sales documents: Inquiries and Quotations
Sales orders
Complaints, such as Free-Of-Charge deliveries, Credit and Debit requests.

During sales order processing, the system carries out basic functions such as:

Monitoring sales transactions
Checking for availability
Transferring requirements to materials planning (MRP)
Delivery scheduling
Calculating pricing and taxes
Checking credit limits

Depending on how the system is configured, these functions may be completely
automated or may also require some manual processing.

There is a document flow function in the system. The document flow shows the
entire chain of documents inquiry, quotation, sales order, delivery, invoice and
accounting document. It is nothing but the flow of data from one document to
another document.

When a sales document is created, the system proposes much of the data from
master records, preceding documents and automatically determined by the system.

The following graphic shows how the various types of sales documents are inter-
related and how data subsequently flows into shipping and Billing documents.

It comprises Material, customer, condition and other master data. The master Data
in an integrated SAP environment is used by all components in the SAP Logistics
System. The integration of all master data in a single database object eliminates
redundant data storage.
The term pricing is used broadly to describe the calculation of prices (for external
use by customers or vendors) and costs (for internal purposes, such as cost
accounting). Conditions represent a set of circumstances that apply when a price is
calculated. For example, a particular customer orders a certain quantity of a
particular product on a certain day. The variable factors here - the customer, the
product, the order quantity, and the date - determine the final price the customer
gets. The information about each of these factors can be stored in the system as
master data. This master data is stored in the form of condition records. SALES HANDLING
Pre-sales business processes in the system is represented using the functions for
inquiries and quotations. Customer inquiries and quotations to the customer can be
entered and monitored.
The inquiry is a request from the customer to provide him with a sales quotation. A
quotation presents the customer with a legally binding offer for delivering a product
or providing a service within certain fixed conditions. The data that is stored in
sales queries forms the basis of subsequent documents and sales analysis,
wherever referenced. FULLFILMENT
This covers the process of Order and Contracts Entry that contain committed
quantities at special prices and payment terms and customer-material information
for certain customers with the standard functions such as the following
Pricing defined for various customer/material, material pricing groups
Availability check using ATP (Available to Promise) logic using specific
checking rules
Transfer of requirements to materials planning (MRP)
Delivery Scheduling to determine the time material is available in the
warehouse and ready for further processing
Shipping point determination (from where the goods dispatched)
Checking Credit Limits under various scenarios
The pricing conditions are dependent on characteristic values and maintained
centrally as master data. Apart from standard products, other products such
Sample sales (under excise invoice), Miscellaneous products sales, Scrap sales will
also be managed through standard sales order processing PROCESSING
This covers the functions of dispatch of goods at the finished goods plants and
depots involving
Creation and processing of Outbound Deliveries
Processing Goods Issue
Controlling using overviews of deliveries currently in process, activities
that are still to be carried out.
The covers the functions of:
Creation of Invoices based on deliveries (Country India version will be
used for processing excise duty and sales tax. This will also cover the
preparation and maintenance of excise and sales tax registers.)
Issue credit and debit memos
Pro forma invoices
Transfer Billing data to Financial Accounting (FI) TRANSFER BETWEEN PLANTS
Processing of Stock Transport orders and generation of excise invoice for transfer of
finished goods between various plants and depots. This will cover the process of
creation of stock transport order (purchase order variant) by receiving plant,
delivery processing by sending plant, creation of excise invoice without sales tax.
The material will be received at plant against the excise invoice with necessary
entries in the excise register.
Sales from depot with / without excise invoice are covered under standard sales
order processing. AGREEMENTS
Creation and maintenance of rebate agreements for Customer, Commission Agent
based on quantity and value discounts offered for various groups of products. This
will allow posting of accruals and settlement of rebates periodically based on sales
This will allow the company to maintain control over the discounts disbursed and
reduce the processing time for issuing credit memos towards settlements on
periodic basis. PROCESSING
Customer Returns processing includes returns processing which includes creation of
returns order, returns delivery, goods receipt in the plant and relevant excise
effects. It also includes credit Note requests that are created with reference to
returns orders or otherwise. PROCESSING
Customer Credit processing includes risk and credit exposure management. It
provides levels and mechanisms to handle credit limits. Credit Management enables
to minimize the credit risk by specifying a specific credit limit for customers. Thus
AGI user can take the financial pulse of a customer or group of customers, identify
early warning signs, and enhance his credit-related decision-making. INDIA VERSION (CIN)
In SAP Country (India) specific statutory requirements are met through CIN. These
statutory requirements have an impact on the business requirement of customers
in India.
The scope of India Localization is restricted to statutory requirements covered by
the main logistics cycle covered by SAP. This essentially covers the procurement
and sales cycle. The areas covered are:
Excise calculation & accounting
MODVAT accounting
Sales tax calculation and accounting
VAT compliance TRADE
This covers the process of Order and Contracts with foreign customers and
statutory documentation involved in Export process as well as Deemed Export
These involve various forms of work lists for daily processing for sales, delivery and
Billing processing.
Standard reports that are used for example for monitoring of dispatches to
customers, stocks at various locations, status and tracking of orders, recording and
management of financial instruments etc. and analysis using Information Systems

1.3.5General Settings

The General settings in SAP consist of the following:
The country specific checks such as date format, decimal format, bank data, postal
data and control data needs to be maintained for a country. All the country codes
are already defined in SAP.

At AGI: Enter the required date format, the decimal format, bank data, postal data
and control data in the country for India.
The region is a further geographical classification within a country. The region is
used for: as a part of address, tax reporting in FI and pricing in SD (only for tax).
The usage of region can vary from country to country.

At AGI: The region will be used to define the states in India. Zones are mapped as
Sales District in the new organization structure in SAP. of Measure (UOM)
This is the unit in which material is purchased, stocked, sold and moved. SAP has
standard unit of measures already defined.

At AGI: The UOM such as Each, Piece, Carton, Bag and MT will be defined in SAP
for AGI. Fluid & Coolant stock keeping unit is in Liters.


Master and transaction data in Sales and Distribution are closely integrated with
other modules within Logistics and Finance. Business Transactions handled as part
of SD module have tight linkages with other modules especially in Finance and
Production Planning. The integration touch points of the Sales and Distribution with
various modules are detailed below.


Assignment of organizational elements like distribution chain (sales
organization / distribution channel) to plants. These allow customers to be
serviced from desired plants for a particular sales organization, through the
distribution channel.
Definition of Material Types and Material Master records for finished and
other products belonging to various divisions
Stock Transport Order Processing for transfer of goods between plants.
Inventory management part of Materials management is completely
integrated in the entire logistics system. For example, on entering a sales
order, a dynamic availability check can be initiated of stocks on hand.
When the delivery is created, the quantity to be delivered is marked as
"Scheduled for delivery". It is deducted from the total stock when the goods
issue is posted.
Vendor master is maintained for the Logistic service provider.


Creating linkages between Sales organization, highest entity in sales and
company code in Finance.
Customer payment processing including advances payments.
Billing and posting the data to accounting
Credit Management
Settlement of rebate agreements
Debit/Credit note creation for returns processing and Rejections etc.,
Country Version India (CIN) comes with functions for calculating, posting,
and remitting excise duty:
The system determines the excise and other taxes on your sales.
The system offers functions for domestic and export sales , including exports
under excise regulations.
All goods movements are recorded in the appropriate excise registers.
You can remit the excise duty using the delivered functions


The production-planning module serves as an important link between sales and
production. This allows the customer requirements to be translated into production
planning parameters using the functions of strategy group and transfer of
requirements and availability check.
In Demand management, the planning of requirement quantities and requirement
dates for finished products and important assemblies, and definition of the strategy
for planning and producing or procuring a finished product.

The requirements are determined from customer requirements, which are
represented by sales orders in the system. The result of demand management is
the demand program.


The Quality Management (QM) component supports Sales and Distribution (SD) by
processing quality inspections and creating quality certificates for deliveries. A
quality inspection for a delivery allows checking the quality of products before it
leaves the plant.
The Quality Management (QM) component supports sales and distribution
With quality inspections for a delivery (based on sales organization,
customer, and material)
With quality certificates for a delivery (with reference to sales organization,
customer, and material)
By managing customer terms of delivery
By managing Return order processing


Interface comes into play when SAP software needs to interact with any other Off-
The-Shelf Software/application or legacy system in some cases. In Sales and
Distribution Module no interfaces have been identified in the current
implementation scope.


The first steps in the implementation of the SAP System involve mapping the
enterprise structure of AGI Ltd. onto the organizational units of R/3. This structure
mapping must ensure that
There is transparency at Operational level
All business processes can run smoothly, using resources as efficiently as
The requirements for internal and external reporting are met
Segregation of various functions as Logistics / Marketing / Sales
There is flexibility to add new entities to meet future growth

2.1.1Company Code

The company code is the smallest organizational unit of Financial Accounting for
which a complete self-contained set of accounts can be drawn up for purposes of
external reporting.

The process of external reporting involves recording all relevant transactions and
generating all supporting documents required for financial statements such as
balance sheets and profit and loss statements.

At AGI: Only one company code has been defined under FI module.

2.1.2Credit Control Area

Credit control area is an organizational unit that represents an area responsible for
granting and monitoring credit of customers. It specifies and checks a credit limit
for customers.

This organizational unit is either a single company code or, if credit control is
performed across several company codes, multiple company codes. Credit
information can be made available per customer within a credit control area.

A credit control area can include one or more company codes. It is not possible to
assign a company code to more than one credit control area. Within a
credit control area, the credit limits for customers must be specified in the same

At AGI: There will be one credit control area; the same would be a part of FI


A sales organization is responsible for selling materials and services. A sales
organization has the following attributes:

Legally, a sales organization is included in exactly one company code.
One or more plants can be assigned to one sales organization.
A sales organization can have its own customer and material master data as
well as its own conditions and pricing.
Sales employees can be assigned to a sales organization.
All items in a sales & distribution document (sales order, delivery or a Billing
document) belong to a sales organization.
A sales organization is the highest summation level for sales statistics with its
own statistics currency.
The sales organization is used as a selection criterion for the lists of sales
documents, delivery and Billing due list and standard reports.
A sales organization cannot share any master data with other sales
organizations. The master data must be created separately, by extending the
customer to one sales organization to the other. The data for a distribution
channel or a division can however be created for several distribution channels
or divisions.

At AGI: Company Code AGI (1000) will have one sales organizations responsible
for all sales activities for finished goods and miscellaneous products.

Sales Organization Code
AGI-marketing 1000


A distribution channel is the channel through which saleable materials or services
reach customers. It includes wholesale, retail, and direct sales. A distribution
channel has the following attributes:

Can allocate distribution channel to one or more sales organizations.
Can define own master data for customers or materials as well as conditions
and pricing within a distribution channel.
The distribution channel can be used as a selection criterion in lists and
standard reports.
Can define common distribution channels for master data such as customers,
materials and conditions.

At AGI: AGI will have five distribution channels, each one representing the various
channels through which goods are sold to customers. Distribution channel STO (50)
would be used for internal stock transfers. Depicted below is the list of Distribution

Distribution Channel Code
Direct 10
Indirect (Dealers/Distributors) 20
Exports 30
Deemed Export 40
Stock transfer Order(STO) 50

An organizational unit based on responsibility for sales or profits from saleable
materials or services. It basically represents various product lines.

Material division would be identified clearly at the time of defining material master
records for finished products. A division has the following attributes:

Allocate a division to one or more sales organizations.
Allocate a division to one or more distribution channels.
A material is always assigned to one division only.
Can define own master data within a division for customers as well as
conditions and pricing.
Can define common divisions for master data such as customers and
The division is used as a selection criterion for lists and standard reports.

At AGI: Twenty Five divisions have been identified, each one representing the
various lines of products, which can be grouped together. The list of divisions in AGI
is as follows:

Division Code

Amber-Pharma 11
Amber-Food 12
Amber-Aerated Water Bottle 13
Amber-Liquor 14
Amber-Beer 15
Amber-Wine 16
Amber-Cosmetics 17
Amber-Others 18
Flint-Pharma 31
Flint-Food 32
Flint-Aerated Water Bottle 33
Flint-Liquor 34
Flint-Beer 35
Flint-Wine 36
Flint-Cosmetics 37
Flint-Others 38
Green-Pharma 51
Green-Food 52
Green-Aerated Water Bottle 53
Green-Liquor 54
Green-Beer 55
Green-Wine 56
Green-Cosmetics 57
Green-Others 58
Scrap 70


Sales area is defined as a unique combination of sales organization/distribution
channel/division for which all transactions are entered in SAP. All such valid
combinations will be used as sales areas. A sales area can be used as a
selection criterion for lists and standard reports.

AT AGI: There would be separate and unique sales areas for each combination
(Sales Organization/Distribution Channel/Division).


This unit is responsible for sales in a particular geographical area and can have an
address. All zonal offices(Zones) will be defined as Sales District.

Sales District Code
Corporate Office (AP) CORP
North NORT
South SOUT


This unit is responsible for sales in a particular geographical area and can have an
address. All zonal offices, commercial and central marketing offices will be defined
as Sales Office.

Sales Office Code
Hyderabad I 1001
Hyderabad II 1002
Hyderabad III 1003
Hyderabad IV 1004
Bangalore 1010
Chennai 1020
Mumbai 1030
Kolkata 1040
Delhi 1050
Baddi 1060
Bhopal 1070
Exports 1080
Sales Office1 1090
Sales Office2 1100
Sales Office3 1110


It is defined as a group of sales person or sales person who are responsible for
sales in the particular sales office. The following sales groups have been identified
in the system.

Sales groups will be attached to the relevant sales offices, which in turn will be
attached to relevant sales areas.

Sales Group Code
HYD1A 100
HYD1B 101
HYD1C 102
HYD1D 103
HYD2A 200
HYD2B 201
HYD2C 202
HYD2D 203
DELH1 301
DELH2 302
DELH3 303
BANG1 401
BANG2 402
BANG3 403
CHEN1 501
CHEN2 502
CHEN3 503
MUMB1 601
MUMB2 602
MUMB3 603
KOLK1 701
KOLK2 702
KOLK3 703
DELH1 801
DELH2 802
DELH3 803
BHOP1 901
BHOP2 902
BHOP3 903
BADD1 950
BADD2 951
BADD3 952


A plant is an organizational unit within Logistics, serving to subdivide an enterprise
according to production, procurement, maintenance, and materials planning. A
plant is a place where either material is produced, or goods and services are

The plant is an operating area or branch within a company. The plant is embedded
in the organizational structure as follows:

The plant is assigned to a single company code. A company code can have
several plants.
Several storage locations in which material stocks are managed can belong
to a plant.
A plant can be assigned to several combinations of sales organization and
distribution channel.
A plant can have several shipping points. A shipping point can be assigned to
several plants.
A plant has its own material master data.

The plant plays an important role in the following areas:

Material valuation: When the valuation level is plant, the material prices are
defined for each plant. Each plant can have its own account determination.
Inventory Management: The material stocks are managed within a plant.
MRP: Material requirements are planned for each plant. Each plant has its
own MRP data. Analysis for materials planning can be made across plants.
Costing: In costing, valuation prices are defined only within a plant.

At AGI: Plant definition would be a part of MM Module. Under company code 1000
Manufacturing locations will be identified as plants. Material valuation will be at
plant level. These will be assigned to company code 1000.

Plant will be assigned to Sales Organization and Distribution Channel combination
for carrying out sales activity from that location.

Plant Code
(Max. 4 char.)
AGI Glaspac, Hyderabad 1001
AGI Glaspac, Bhongir 1002


Storage location in SAP allows differentiation between various stocks of materials in
a plant. These are the smallest unit in an organization hierarchy. These storage
locations can also correspond to physical storage points within AGI.

A storage location has the following attributes:

There may be one or more storage locations within a plant.
It is possible to store material data specific to a storage location.
Stocks are managed only on a quantity basis and not on a value basis at
storage location level.
Physical inventory is carried out at storage location level.
Storage locations are always created for a plant.
They are assigned to plants and are relevant for sales functions.

At AGI: Storage Location definition would be a part of MM Module.


The shipping point is an organizational unit in Logistics that carries out shipping
processing. The shipping point is the part of the company responsible for the type
of shipping, the necessary shipping materials and the means of transport. The
shipping point has the following attributes:

A shipping point can be allocated to several plants.
A delivery is always initiated from exactly one shipping point.
The shipping point is used as a selection criterion for lists of deliveries, the
work list deliveries, picking and goods issue.

AT AGI: Each plant would have a separate shipping point.

Shipping Point Code
Motinagar 1100
Bhongir 1200
Depot-1 1300
Depot-2 1400