SAP SD Configuration

University of Southern California

Enterprise Wide Information Systems

Configuring SAP

Instructor: Richard W. Vawter


Objectives

The primary objective of this discussion is to show how the SAP R/3 Implementation Guide (IMG) can be used to aid the project team in configuring business transactions. For simplicity, we will keep our focus on the Order process.

Upon completion of this topic, you should be able to:

Describe the various implementation and configuration tools available in the SAP R/3 system.

Anticipate how elements of the Customer Master are integrated and are used to control the SD processes.

Use elements in the Material Master to streamline COM.

How to configure the Billing process for data flow and price control.


Topics

The Implementation Guide

Sales Orders and the Customer Master

Customizing the Material Master

Configuring the Billing Process


Methods for Implementing & Configuring SAP

SAP R/3 includes several tools to facilitate configuring SAPand continuing support .

The R/3 Reference Model - describes the business processes included in the standard R/3 system as well as the relationship among the different application modules.

The Implementation Guide (IMG) - guides users in matching their business requirements with the SAP standard software.

The Procedural model - is used as a navigator to guide you through the whole implementation and configuration process.



A tool that leads to a step-by-step customizing of selected parts (modules) of the R/3 system.

It guides the project team in matching the business requirements with the SAP standard software.

With the IMG project management functions... Consultants in charge of implementation first decide which

parts of R/3 are to be customized.

The system then automatically generates the needed hierarchical list of the customizing steps for achieving that customization.



Basis configuration takes place.

Global settings are set as default in the SAP system.

The structure is defined to match the organization’s business function.

Applications are created to meet business requirements. Financial Accounting

Materials Management

Cross- application functions are developed.

Sales and Distribution

Human Resources


The Enterprise IMG

The Enterprise IMG is just a subset of the Reference IMG.

It is where all the customizing takes place.

PS

PP

CO

FI

….

HR

MM

SD

FI

MM

PP

CO

FI

CO

PP

MM FI

CO

SAP Reference IMG Enterprise IMG

Project IMG

Project 001Project 002

Project 002Additional needs,

e.g. upgrade


Customizing Objects

As a rule, you will have more than one SAP system. Development system

Changes made in the development system are transported to the test system, then to the production system.

Test system Production system

Development system

1 21 2 31 2 3 4

11 2

Sales organization

Sales documents

Implementation guide

Test system

234

12

Sales organization

Sales documentsVersions

TransportRequest

Workbenchorganizer


Customizing - How to Proceed

1. Define the organizational structures in the IMG and name the individual organizational elements.

2. Assign the organizational elements.

Define the organizational elements

Assign the organizational elements


Topics






How Master Data is Integrated in SD Processing

Master DataCustomersMaterialsBills of MaterialsCustomer-Material InfoProduct Proposals

Master DataCustomersMaterialsBills of MaterialsCustomer-Material InfoProduct Proposals

FIPS

PMCC

MMPP

FI

MM

CO

FI

Sales supportSales support

DataWarehouse

DataWarehouse

SalesSales

Materials Mgmt.Production PlanningPlant MaintenanceControllingFinancial AccountingProject System

Materials Mgmt.Financial Accounting

Financial AccountingControlling


Origins of Data in Sales Documents

When you create a sales order, the system proposes most of the data from the master records.

Sales orderCustomer master dataCustomer master data

Material master dataMaterial master data

. . . . .. . . . .

ConditionsConditions

TextsTexts

Control tablesControl tables


Business Partners (Partner Functions)

Partners - someone you have a relationship with or have to communicate with.

Functions - each partner type has specific functions.

Sold-to partySold-to party

Ship-to partyShip-to party

Bill-to partyBill-to party

PayerPayer

Contact personContact person

Forwarding agentForwarding agent

EmployeeEmployee

. . . . . . . .. . . . . . . .

PartnerFunctions


Business Partners - Customer Master

Essential business partners for a sales transaction are the sold-to party, ship-to party, payer and bill-to party.

They are stored in the customer master.

Sold-to partySold-to party Ship-to partyShip-to party

Bill-to partyBill-to party PayerPayer

Customermaster


Customer Master - 3 Major Data Views

Sales data - data specific to sales, e.g. sales, distribution, shipping.

Company Code data - financial accounting data.

General data - data assigned directly to a client so it’s available to the other two areas.

General dataGeneral data

Sales dataSales dataCompany code dataCompany code data

FI SD


Customer Master - Account Groups

Account Group codes define what information will be needed; what fields will be required. A payer only needs address information, etc, while a sold-to

party needs an address plus delivery address, etc.

Customer : C1

Sales organization : 0001

Distribution channel : 01

Division : 01

Account group : 0001

Create sold-to partyCreate sold-to party

Field selectionNumber assignmentOne-line account: Yes/NoOutput proposal

ACCOUNT GROUP 0001ACCOUNT GROUP 0001

ACCOUNT GROUPACCOUNT GROUP

0001 Sold-to party

0002 Ship-to party

0003 Payer

0004 Bill-to party

. . .

0001


Customer Master - Selecting Fields for Data Groups

Using field selection, you can define for each account group whether fields are optional or required.

You can suppress any fields which you do not require.

Data in the customer master recordData in the customer master record AddressCommunicationControl dataPayment transactions

SalesShippingBillingPartner usageOutput

IMG for SalesIMG for Sales

General data

Company code data

Sales data

Hide Required Optional DisplaySales groupStatistics groupCustomer groupPricing procedureProduct proposal. . . .


Account groups are already set up in the R/3 system Sold-to party

Specific fields are selected for each of these account groups

The selection of fields depends on the functionality of the partner function needed.

Customer Master - Selecting Fields for Data Groups

Bill-to party Payer Ship-to party

Account group0001

Sold-to party

Sales

Shipping

Billing

Partner usage

Documents

Sales

Shipping

Billing

Partner usage

Documents

Account group0002

Ship-to party

Sales 1

Shipping

Billing 2

- - - - -

Documents

Sales 1

Shipping

Billing 2

- - - - -

Documents

Account group0003

Payer

Sales 1

- - - - -

Billing

- - - - -

Documents

Sales 1

- - - - -

Billing

- - - - -

Documents

Account group0004

Bill-to party

Sales 1

- - - - -

- - - - -

- - - - -

Documents

Sales 1

- - - - -

- - - - -

- - - - -

Documents

1. Controlling for authorization 2. Tax information


Customer Master - Combination Rules in Field

The combination rule with the highest priority determines the respective field status.

SuppressSuppress

DisplayDisplay

RequiredRequired

OptionalOptional

SuppressSuppress

SuppressSuppress

SuppressSuppress

SuppressSuppress

SuppressSuppress

DisplayDisplay

SuppressSuppress

DisplayDisplay

DisplayDisplay

DisplayDisplay

RequiredRequired

SuppressSuppress

DisplayDisplay

RequiredRequired

RequiredRequired

OptionalOptional

SuppressSuppress

DisplayDisplay

RequiredRequired

OptionalOptional

1st priority1st priority

2nd priority2nd priority

3rd priority3rd priority

4th priority4th priority

Transaction fields marked as:

Acc

ou

nt

gro

up

ma

rke

d a

s:


Customer Hierarchies

Create hierarchies to reflect the structure of the customer organization.

Use customer hierarchiesduring sales order processing and billing for determining pricing.

ACME CoACME Co

CentralCentral

47114711

ACME CoACME Co

SouthSouth

47124712

ACME CoACME Co

NorthNorth

47134713

ACME CoACME Co

NorthwestNorthwest

47144714

ACME CoACME Co

NortheastNortheast

47154715

Customer2743

Customer2743

Customer2744

Customer2744

Customer2742

Customer2742

Uniquenode number

Uniquenode number


Topics






Materials - Material Types

The material type is part of the general data on a material.

The departments responsible for a material type determine which views must be maintained for a specific material.

Material

A

Matl. type

Description

Department

Internal/External POs

Description

Department

Internal/External POs

Account

assignment

Account

assignment

Quantity/Value updatePrice control

Variance for each plant

Quantity/Value updatePrice control

Variance for each plant


Selecting Fields for Materials - Influencing Factors

An individual control table is available for each influencing factor shown here and corresponds to a group of fields in the material master.

TransactionTransaction

Procurementindicator

Procurementindicator

Material typeMaterial type

PlantPlant

Industry sectorIndustry sector

SAPcomponents

SAPcomponents

Field selectionField selection

Sales &Distribution

MaterialsMgmt.

ProductionPlanning

FinancialAccounting

Controlling

Fixed AssetsMgmt.

QualityMgmt.

PlantMaintenance

HumanResources

Workflow

IndustrySolutions

R/3Client / Server

ABAP/4 ProjectSystem

?……………..

…………

…………


Materials - Material Status

You can define different kinds of material status and for each status, how the system will react when an item is created in a sales document.

Material Status

Discontinued part

Technical defect...

Discontinued part

Technical defect...

Quotation Standard Order

Error Warning

Error Error

Error Warning

Error Error


Product Hierarchies

Product hierarchies are used for pricing and analysis.

In the Standard SAP setup, they can be defined with up to 18 characters and three levels.

1 1

2 2

3 3

LevelLevel

0000100001Electrical appliances

0000100001Electrical appliances

0000100002Compressors0000100002

Compressors

00001Tools

000010000100000001Electric screwdrivers000010000100000001Electric screwdrivers

000010000100000002Electric drills







Customer-Material Information

You can define customer-specific data for a material in a customer-material information record. This may incl: cust.-specific matl. # cust.-specific matl. description etc.

Sales organization : 1000Distribution channel : 01Customer : C1

Sales organization : 1000Distribution channel : 01Customer : C1

Material Description M1 Computer AG M2 Computer UG . . . .

Material Description M1 Computer AG M2 Computer UG . . . .

Customer-specific dataMaterial Description M234 Computer 550C M598 Computer 1650B . . . .

Customer-specific dataMaterial Description M234 Computer 550C M598 Computer 1650B . . . .

Customer-Material Information

Customer Matl Description Qty M234 Computer 550C 10 M598 Computer 1650B 3

Customer Matl Description Qty M234 Computer 550C 10 M598 Computer 1650B 3

Sales order

Sold-to Party: C1Sold-to Party: C1


Proposing Items Using Product Proposal Material combinations which you use frequently can be

stored in product proposals.

Product proposal : 5000002Validity period : 01/01-12/31Search term : SD product proposals

Item Material Qty. 10 M1 40 20 M2 50 30 M3 30

Sold-to party: C1

Item Material Qty. 10 M1 40 20 M2 50 30 M3 30

Sales Order

Material ormaterial + quantities


Bill of Materials - An Example

By making the appropriate settings in Customizing, you can copy the components in the bill of material to a sales order as one “item”.

Mouse Monitor CPU Keyboard

Computer

Screen Casing


Bill of Material - Bill of Material Categories

The bill of material category serves as a link to different objects.

You can create bills of material only for objects existing in the material master.

Material BOM

Equipment BOM

Document BOM

Materialmaster record

MaterialA

Equipmentmaster record

Documentmaster record

Sales order


Bill of Material - Where They Are Used

Item status controls how BOM items are processed in related application areas: Production (operations)

Construction (technical data)

Pricing

Sales & distribution (order quantity)

Plant maintenance (maintenance information)


Topics






Billing Types

The billing type controls the entire billing document.

Billing types are dictated by the type of the reference document.

InvoiceInvoice

Cash saleCash sale

Credit/debit memoCredit/debit memo

ReturnsReturns

Inter-company billingInter-company billing

CancellationsCancellations

Invoice listInvoice list

Pro forma invoicePro forma invoice

BillingTypes


The Billing Process Each billing document requires a reference document.

InquiryType: IN

StandardOrder

Type: OR

HeaderItem: TANSchd. line

ReturnsType: RE

HeaderItem: REN

Cash SalesType: BV

CreditType: CR

QuotationType: QT Type: LF

HeaderItem: TAN

Type: F2

Header

Schd. line

Type: LR Type: RE

Type: LR

Type: RE

Order Document Types Delivery Doc. Billing Documents

Immediate


Billing Documents

You can reference either an order or a delivery document when creating an invoice.

This is configured in the IMG by the item category.

Std. Order Delivery Invoice

Std. Order Delivery Invoice

or


Credit / Debit Memos

However, with credit / debit memos, you can only reference the credit / debit requests (sales documents).

Credit request Credit memo

Debit request Debit memo

Order Delivery Invoice

or


Returns

Credit memos are created with reference to the returns (sales documents) and NOT to the returns delivery.

Credit request Credit memo

Sales Order Delivery Invoice

or

Returnsdelivery


Data Flow

You can influence the data flow from reference documents to billing documents by: Billing types Copying control for header Copying control for items

Order Delivery Invoice

For example- payer- item number- prices- texts

For example- ship-to party- quantity- texts

Doc. flow

Data flow


Copy Control

As just mentioned, how data is transferred in the billing process can be influenced by the copy control data.

Header F2 LF

Item F2 LF TAN

Target Source

Billing Deliverytype type

Target Source Source

Billing Delivery Itemtype type category


Billing Quantities

Delivery and order quantities are referenced in billing.

You can create a billing document with reference to an order for quantities already delivered.

Billing Billing Quantity

With reference to an order Delivery quantity minus quantityalready invoiced

With reference to a sales document Order quantity minus quantity(e.g., credit memo) already invoiced

With reference to a delivery Delivery quantity minus quantity(e.g., billing doc. Types F1 and F2) already invoiced

Pro forma invoice F5 Order quantity

Pro forma invoice F8 Delivery quantity


Pricing in Billing Documents You can specify a pricing type for each billing document

type and item category.

Invoice AM1 10 pc10 x 9.50Manual discount

Invoice BM1 10 pc10 x 10.50Discount 2 %

Invoice CM1 10 pc10 x 10.50Discount 2 % & manual

Invoice DM1 10 pc10 x 9.00Manual discount

Discountfrom 50.00 1 % -

100.00 2 % -

Price: Material M1from 1.pc 10.00

10.pc 9.5020.pc 9.00

Price: Material M1from 1.pc 11.00

10.pc 10.5020.pc 10.00

OrderM1 20 pc20 x 9.00Manual discount

Delivery

M1 10 pc

January March

Pricing type:A Price components are copied and updated (scale

redetermined).

B Pricing is carried out again.

C Manual price components are copied, pricing carried out for all other components.

D Price components are copied as is from the reference document.


Key Points (1)

The Implementation Guide (IMG) enables the project team to match the business requirements with the SAP standard software and customize the transactions to the needs of the organization.

You can minimize the time an effort needed to create sales documents by thoroughly maintaining the customer master and defining all types of business partners.

The account group allows you to select data fields for maintaining the master data.

By classifying materials by material types, you can specify which views for a material are to be maintained.


Key Points (2)

When maintaining material master records, you can specify (in the IMG) which fields are to appear, to be required or optional, or are to be blocked.

You can store customer-specific information on individual materials (e.g. customer material numbers and descriptions) in customer-material information records. This enables you to create orders using material numbers specified by the ordering party.

When you frequently sell combination of materials, you can simplify sales order creation by creating product proposals.

You can also create BOM’s to combine several materials for use in SD.


Key Points (3)

Billing documents always reference a previous document.

Reference documents will dictate the billing document type.

The flow of data is controlled: by the programs

by billing types

by copying control tables

You can determine copying control at: the header level

the item level