SD Reading Material

8/3/2019 SD Reading Material

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SAP Sales and Distribution Module (SD)

Sales and Distribution (SD)

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The Sales & Distribution(SD) business process is the means through which an entitysecures and processes orders from customers (Sales Order Processing), initiates the

delivery of products or the provision of services (Outbound Logistics), and bills thecustomer for products shipped or services rendered (Billing). The SD process must,therefore, access data on customers, be integrated with Materials Management (MM) inorder to establish product delivery, and be integrated with Financial Accounting (FI) inorder to provide data on receivables due from billings generated.

1. Organizational structure, master data, and

integration in Sales and Distribution

Sales processing is based on the following basic structures:

Every company is structured in a certain way. In order to work with the SAPSystem yourcompany structure has to be represented in the system. This is

done with the help of various organizational structures.

For SD the organizational structure of the Sales Organization is the structuralelements of the sales process are accomplished.

In sales and distribution, products are sold or sent to business partners orservices are performed for them. Data about the products and services as wellas about the business partners is the basis for sales processing. Salesprocessing with the SAP R/3 System requires that the master data has been

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stored in the system.

Because products and services are the deliverables of the SD process, the SDprocess must be linked to the MM logistical process. Given that sales occur tocustomers (business partners) the SD process must contain data identifying theattributes of those customers.

In addition to sales and distribution, other departments of the company such asaccounting or materials management access the master data. The materialmaster data is stored in a specific structure in order to allow access from thesedifferent views.

The processing of business transactions in sales and distribution is based on the masterdata. In the SAP R/3 System, business transactions are stored in the form of documents.These sales and distribution documents are structured according to certain criteria sothat all necessary information in the document is stored in a systematic way.

2. Organizational Structures in SD

In the SAP R/3 System you can use several structures to represent the legal andorganizational structure of your company. The organizational structures form a frameworkin which all business transactions can be processed.

In SD the elements of organizational structure include client, company codes, salesorganizations, distribution channels, divisions, plants, sales offices, sales groups, salespersons, shipping points, loading points, and sales areas. You link the organizationalstructures in SD with those in Financial Accounting and Materials Management. You

maintain and assign the organizational units in Customizing for the enterprise structure .

The following graphic displays these organizational elements.

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Sales organization

The sales organization is an organizational unit within logistics, that structures thecompany according to its sales requirements. A sales organization is responsible for thesale and distribution of goods and services. It represents the selling unit as a legal entity.

It is responsible for product guarantees and other rights to recourse, for example. Regionalsubdividing of the market can also be carried out with the help of sales organizations. Eachbusiness transaction is processed within a sales organization. The sales organizationmust be specified in all sales documents. It is therefore available for all basic functions ofSD (such as pricing, availability, etc.).

Structure

A sales organization can be subdivided into several distribution chains which determinethe responsibility for a distribution channel. Several divisions can be assigned to a salesorganization which is responsible for the materials or services provided. A sales area

determines which distribution channel can be used to sell the products from one division ina sales organization. Each sales organization is assigned exactly one company code forwhich you enter all accounting details of the sales organization.

A distribution chain can be active for several plants and the plants can be assigned todifferent company codes. If the sales organization and plant are assigned to differentcompany codes, an internal billing document is sent between the company codes beforethe sales transactions are entered for accounting purposes.

Distribution channel

The distribution channel represents the channel through which salable materials orservices reach customers. Typical distribution channels include wholesale, retail and directsales. Within a sales organization a customer can be supplied through several distributionchannels. In addition, the material master data relevant for sales, such as prices, minimumorder quantity, minimum quantity to be delivered and delivering plant, can differ for eachsales organization and distribution channel.

Structure

A single distribution channel can be assigned to one or more sales organizations.

Division

In the SAP R/3 System you can define a division-specific sales organization. Productgroups, i.e. divisions, can be defined for a wide-ranging spectrum of products. For everydivision you can make customer-specific agreements on, for example, partial deliveries,

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pricing and terms of payment. Within a division you can carry out statistical analyses or setup separate marketing procedures.

Sales Areas

SD is organized according to sales organization, distribution channel and division. Acombination of these three organizational units forms the sales area. A sales area is aspecific combination of sales organization, distribution channel and division.

The following graphic displays these organizational elements.

In sales organization 1000, sales and distribution transactions can be carried out

through all distribution channels and for all divisions. In sales organization 2000, products of both division 01 and division 02 are only

sold through distribution channel 10. In sales organization 3000, only products of division 01 are sold, and only through

distribution channel 10.

Creating a sales area allows you to exclude certain combinations of the differentorganizational areas.

3. Internal Organization in Business Development andSales

The organization in Sales is represented by the elements sales office, sales group andsalespersons. The following figure displays a sample organization in businessdevelopment and sales.

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Sales office

Geographical aspects of the organization in business development and sales are defined

using the term sales office. A sales office can be considered as a subsidiary. A sales officeestablishes contact between the firm and the regional market. As an example, the branchof a firm in New York, Main Street 1 can represent a sales office

Sales group

The staff of a sales office may be subdivided into sales groups. For example, sales groupscan be defined for individual divisions.

Salespersons

You can maintain personnel master records for sales representatives in your company. Inthe personnel master record, you assign the salesperson to the sales office and the salesgroup. You can also enter the system user name of the sales person. This allows mails tobe sent to the salesperson (define the partner function for sales personnel in the salesdocument).

Sales offices are assigned to sales areas. If you enter a sales order for a sales office withina certain sales area, the sales office must be assigned to that area.

The sales groups are assigned to the sales offices.

The salespersons are assigned to the sales group and the sales office via the personnelmaster record.

4. Organization in Shipping and Transportation

Independent organizational entities, such as shipping points, are responsible forscheduling and processing deliveries to customers, as well as replenishment deliveries to

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your own warehouses. A delivery is always carried out by one shipping point only. Theshipping point depends on the following criteria:

Delivering plant Type of shipping (for example, train, truck) Loading equipment necessary

Loading Point

Shipping points can be subdivided into loading points. For example, ramp 1, ramp 2 andramp 3 belong to the shipping point Forwarding depot.

The following figure displays a possible organization in shipping.

Transportation Planning Point

The transportation planning point is an organizational unit in Logistics, responsible forplanning and processing transportation activities. It organizes the responsibilities in acompany, e.g. according to shipment type, mode of transport or regional departments.

The shipping point is assigned to a plant. Loading points are assigned to shipping points.

5. Link between Sales and Distribution and Accounting

By assigning sales organizations and plants you create a link between company codesand sales organizations. A plant, though always linked to one company code, can be

assigned to different sales organizations. Within a company code several salesorganizations can be active. Business transactions can also be carried out betweendifferent company codes (for example, during inter-company sales processing).

The following figure displays possible assignments of company codes, sales organizationsand plants.

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Plants 1, 2 and 3 belong to company code 1. Sales organization 1 uses plants 1 and 2.

Sales organization 2 uses plants 2 and 3. Sales organizations 1 and 2 can make cross-company sales for goods from plants 4 or 5.

6. Link to Materials Management Structure

The plants allowed for sales are determined for each sales organization according to thedistribution channel, so that a sales organization can sell goods from several plants. Aplant can be assigned to different sales organizations. All of these sales organizations cansell from that plant. You can differentiate further between the plants belonging to a salesorganization from the sales view using the distribution channel. For certain plants within a

sales organization, the distribution channel "sales from plant" is allowed, but not for others.

The following figure shows an assignment of sales organizations and plants.

Sales organization 1000 sells from plants 1000 and 2000Sales organization 2000 only sells from plant 2000Sales organization 3000 only sells from plant 3000

7. Customer Master Records

Data on customers is important for both the accounting department and the sales anddistribution department. In order to avoid data redundancy, accounting data and sales and

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distribution data is stored in one master record, the customer master record. You create acustomer master record for customers with whom your company has business contacts.This master record contains all data necessary for processing the business transactions.Maintaining the master data correctly can greatly reduce the work needed to processtransactions. This is because the master data is automatically copied into the transactions.

Both the accounting department and the sales and distribution department have access tothe customer master record. In order to avoid data redundancy, the data for bothdepartments is stored in a common master record.

General data, company code data, and sales and distribution data is stored separately inthe customer master record. Company code data depends on the company codeorganization. It is defined individually for each company code. Sales and distribution datadepends on the organization in the sales area. It is defined individually for each sales area.General data is independent from company code and sales area. It applies to onecustomer in all company codes and sales areas.

Data in the Customer Master Record

Different data is maintained in each of the three areas:

General data is maintained for every customer. Such as address, communication,etc. This data is identifiable only via the customer number, not via the number of thecompany code or the sales area. Maintaining the data is possible from both theaccounting view and the sales and distribution view.

Company code data is only of interest for the accounting department. It includes,for example, information on insurance or account management. This data applies toonly one company code.

Sales and distribution data is only of interest for the sales and distributiondepartment. It includes, for example, data on pricing or shipping. This data onlyapplies to one sales area, and therefore is dependent on the sales structure (salesorganization, distribution channel, division).

8. Customer Master Record Structure

The following figure displays the structure of a customer master record.

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General data

General data does not depend on the company code, or on your company's organizationof sales and distribution. Data on a customer is the same in both views. This includes, forexample, the customer name, address and telephone number. However, general data isnot limited to the information which is of importance to both departments. The unloading

point, for example, which is regarded as general data, is only relevant for sales anddistribution. However, since it is not based on the sales and distribution organization ofyour company and is always unique for this customer, it is not considered part of the salesand distribution data.

If you edit a customer master record using only the customer number, without specifying asales and distribution area or a company code, the system will only display the generaldata screens.

General data is entered by the department which first creates the customer master recordfor a customer. If the sales and distribution department creates the customer master

record, it must also enter the address data. When the accounting department entersaccounting data it is then unnecessary for them to enter the general data also. They canuse the display function to access the general data.

Company Code Data

This data is only of importance to the accounting department. It includes, for example, dataon insurance and account management. Company code data only applies to one companycode.

If you edit the customer master record you must specify customer number and companycode in order to access the screens containing company code data.

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Sales and Distribution Data

This data is only of importance to sales and distribution. It includes data on pricing,delivery priority and shipping conditions. The data for one customer can differ for eachsales area. The sales area is a combination of sales organization, distribution channel anddivision.

Only after entering the sales and distribution data for a customer can you process salesand distribution transactions for the customer (for example, a sales order). Also, you canonly invoice a business transaction if the data on the payer has been maintained from thefinancial accounting view.

If you edit the customer master record you must enter the customer number and the salesarea in order to access screens containing sales and distribution data.

Menu Access According to the Department

In the system you can access department-specific data via menus:

If you want to define customer data for sales you access the customer masterrecord through the sales and distribution menu (Logistics). If you want to enter data for the accounting department, you access the customer

master record through the accounting menu. You can use both initial menus to edit the customer data centrally, i.e. from both the

sales view and the accounting view.

In sales and distribution, central maintenance is only provided for the business partnerssold-to party and payer, for which central maintenance is worthwhile.

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9. Texts in Master Records

The following figure shows some of the texts which are defined for customer and materialmaster records in the standard version of the SAP R/3 System.

10. Customers and Business Partners

A company deals with different natural and legal persons during business transactions. Acustomer orders goods from a company. A forwarding agent might deliver goods to thecustomer. An employee within the company processes the business transactions. All rolesa natural or legal person can assume are represented by business partnersin theSAP R/3 System.

Business partners

A company has contact with its business partners, who are customers and vendors. Dataon each of these and on the company's personnel is stored in a separate master record.

Customers

The term "customer" is used to define all customers to whom the company has contact.The term "vendor" is used to define all business partners who carry out a delivery or aservice for the company. A business partner can be a customer and a vendor at the sametime if, for example, your customer also supplies goods to you. In this case, both a

customer master record and a vendor master record must be created for the businesspartner. You can create a link between the master records by entering the vendor numberin the customer master record and the customer number in the vendor master record.

Vendors

Data on business partners who are vendors, for example, forwarding agents, is managedin the vendor master record. If a vendor is also a customer, a link can be created.

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Personnel

Data on employees of your own company, for example, sales personnel or clerical staff, ismanaged in the personnel master record. Data on each employee can be managed by hisor her personnel number.

Only the personnel department of your company is authorized to create a personnelmaster record, using Human Resources (HR). The personnel department of your companymanages the personnel numbers of the employees. If HR is not used in your company youcan also create a personnel master record yourself for employees in sales and distribution.

11. Partners in the Customer Master Record

In sales and distribution there are:

Business partners

A customer master record must be created for business partners.

Contact Persons with the Business PartnerA contact person is the person you deal with at the customer. Data on contactpersons is stored in the customer master record of the respective business partner.A separate master record for contact persons is not created. A new number isassigned to each contact person within a customer master record.

Business partners

A business partner can be a natural or legal person who is directly involved in a business

transaction with you. The following partner functions are defined in the system: Sold-to party Ship-to party Payer Bill-to party

sold-to party

Person or company that places an order for goods or services.The sold-to party can also perform the functions of the payer, bill-to party or ship-to party.

For the sold-to party, data on sales is necessary (for example, the assignment to a sales

office or to a valid price list).

In most cases, the company which places an order for the delivery of goods or therendering of services is at the same time ship-to party, payer and bill-to party. For thisreason in the SAP R/3 System the function sold-to partyincludes all these other functions.

ship-to party

Person or company that receives the goods.

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The ship-to party is not necessarily the sold-to party, the bill-to party or the payer.

For the ship-to party only data required for shipping is necessary (for example, unloadingpoint and goods receiving hours).

Bill-to party

Person or company that receives the invoice for a delivery or service.

The bill-to party is not necessarily the payer who settles the bill.For the bill-to party you need the address, data on output and possibly data on electroniccommunication.

payer

Person or company that settles the bill.The payer is not necessarily the bill-to party.

A payer is a company or person who settles the invoices for delivered goods or renderedservices. For the payer data on billing schedules and bank data is necessary.

Contact Persons with the Business Partner

In your customer's company there is always one or more contact persons with whom youare in contact either by phone, in writing or personally to carry out business transactions.Often, the information you need about the contact persons is not the same as theinformation you need about the customer. The most important data of the contact person isname, telephone number, and department. Since the contact person is part of thecustomer's company, you enter this data in the respective customer master record. Thus,you do not need a separate master record for contact persons. However, in the standardversion of the SAP R/3 System you can only enter the data on the contact person in thecustomer master record of the sold-to party, since only contact persons from this masterrecord are proposed for selection in the sales order.

Dividing Partner Functions

The company or person who places an order is often the same company or person whoreceives both the goods and the invoice, and also pays. In this case the customer fulfills allpredefined functions. It is also quite common, however, that subsidiaries place orders, andthe head office settles the respective invoices. In this case the partner functions aredivided among different companies. If a customer fulfills all functions at the same time,only one master record is necessary, in which all data required for these functions isentered. In this case you create a master record for the sold-to party.

If the functions are divided among different companies, a corresponding number of masterrecords are needed. In one master record you enter, for example, the address of the sold-to party for correspondence, in another one the address of the ship-to party for thedelivery. Only in the customer master record of the sold-to party is a link between the

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individual partners established, and this is done by entering the customer number of therespective partners.

Screen and Field Selection for Partner Functions

When you enter a customer master record for the ship-to party, you need special data for

shipping (for example, the unloading point and goods receiving hours). In this case, dataon sales or billing is not necessary, providing the ship-to party is not the payer and sold-toparty at the same time. You can limit the screens and fields accessed in the customermaster record so that only the necessary data is entered. You do this using accountgroups. The function of a customer is defined by assigning an account group.

12. Data in the Customer Master Record

A customer master record contains all data needed for business transactions andcorrespondence with the customer. This includes address data, shipping data, sales data,

and data for invoice creation.

Data Groups in Sales and Distribution

The following figure shows the data important for the sales and distribution department.

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Accessing Sales and Distribution Data in the Customer Master Record

You access this data using the sales and distribution menu. Depending on the data groupsto be edited, you enter the data that is listed in the column "Access through".

Accessing the Data Groups

Types Access through Data groups

General data Customer number Address

Control data

Marketing

Payment transactions

Contact person

Unloading points

Sales and Distribution data Customer number Address

Sales organization Control data

Distribution channel Marketing

Division Payment transactions

Contact person

Unloading points

Sales

Shipping

Billing Output

Partner functions

13. Creating a Customer Master Record

You create a customer master record when you start a business relationship with a newcustomer. Customer master records can be created for the following business partners:

Customer: Ship-to party

Payer

Bill-to party One-time customer including all partner functions

Create with reference: Using a Reference for Customer Master Record Creation

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If a customer master record with similar data already exists, you can enter its number inthe field Customer in the reference section of the initial screen, which will reduce the effortrequired to create the new master record. If you enter only the customer number in thereference section, the system will copy only the general data into the new customer masterrecord. If you also enter data on the sales area, the sales and distribution data will also becopied. Only data which can be identical for both master records is copied. For example,

address and unloading points are not copied, while country, language and account groupare. You can change all copied data. If you create a customer master record for acustomer for whom a customer master record in another sales area already exists, thegeneral data will not need to be entered again for the second master record because italready exists in the system.

Create an already available customer master record for a new sales area

If you create a customer master record for a customer, for which a customer master recordalready exists in another sales area, then use the customer that has already been createdas a reference. In this case you do not need to enter the general data for the second

master record again.

Master Data Grouping

You can specify that customer master records which have been created in a particularsales organization for a specific distribution channel and division are also valid in otherdistribution channels and/or divisions. This means that you only have create masterrecords which you require in various distribution channels once. This can save you a lot oftime and effort.

You can use the same function to edit material master records and prices.

Master data grouping for distribution channels.

At distribution channel level, you can specify the other distribution channels in whichprices and customer and material master records are also valid.

Master data grouping for divisions

At division level, you can specify the other divisions in which customer masterrecords and prices are also valid.

You make the settings in customizing.

14. Products and Services

Products and services are combined in the SAP R/3 System under the term material. Allinformation necessary for the management of a material and its stocks, as well as its use,

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is maintained in the so-called material master record. This includes, for example, data onpurchasing, on sales and on storage.

Different company areas and SAP modules access the material master records, whichtherefore must meet a wide variety of requirements. During sales processing, the systemrepeatedly accesses the material master records. It is one of the basic sources of data for

sales processing. The material master record is accessed, for example, in the inquiry, inthe quotation and in the sales order. Data in the material master record is also of greatimportance for shipping and billing. However, the data required for shipping, for example,is not the same as that required for sales or billing.

15. Material Types

Material types in the SAP standard version are, for example, raw materials, trading goods,semi-finished products, finished products, or services. The material type represents certainfeatures of materials in the system, and has important control functions: the material type

is used, among other things, to group field selection functions for a material, or to definethe screen sequence, the type of number assignment and number ranges during materialmaster record maintenance. Depending on the material type, company areas maintaindifferent data screens. This screen selection applying specifically to an application is calleda "view".

The following are examples of possible material types in the SAP standard version: Trading Goods Non-stock Material Services Packaging Material

Trading Goods

Trading goods are movable goods intended for commercial exchange. Examples of tradinggoods are market goods, consumption goods and durable goods. Trading goods arealways bought and re-sold by your company. The material master record for trading goodstherefore always contains purchasing data and sales data. Trading goods are managed inthe SAP R/3 System using the key HAWA.

Non-stock Material

Non-stock material includes materials that are not managed on an inventory basis (forexample, small parts such as nails) though physically in stock. Non-stock materials aremanaged in the SAP System using the key NLAG.

Services

Services are represented and managed in the SAP System as materials. Services areimmaterial goods that differ from other goods, particularly in that their production and

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consumption coincide. Services are generally regarded as non-transportable and non-stockable. Typical services are commercial services, transport services, bank andinsurance services, goods from cultural organizations and the mass media, as well asservices provided by the public security forces or the education and health sectors.

Since services cannot be stored, a material master record of this material type does not

contain inventory data or inventory management data. No fields for gross weight, netweight or unit of weight are included in the basic data for a service, as are for othermaterial types. Services are managed in the SAP R/3 System with the key DIEN.

Packaging Material

This material type includes all materials needed for packaging. For example, boxes orcrates. Packaging materials are managed in the SAP R/3 System with the key VERP.

Other Material

Materials which cannot be assigned to any of the standard material types can bemaintained, as "Other material". Thus, besides standard material types (trading goods,finished products, services etc.) you can also create additional material types. Whencreating such a material, note that a material type must be entered on the first data screen.For standard material types, this entry is not necessary because the material type isselected in the menu.

16. Organizational Structure of the Material Master

Record

Each company has a specific structure and a typical organization. This is represented inthe SAP R/3 System as an organizational structure. A certain part of the organizationalstructure is relevant for every company area.

Organizational Levels

An organizational structure consists of several organizational levels. These are used bydifferent company areas. The organizational levels sales organization and distributionchannelare, for example, used exclusively by sales and distribution whileplantandstorage location are shared by sales and distribution and materials management.

The sales and distribution data for a material is managed at the organizational levelsclient, plant, sales organization and distribution channel. Therefore, you have to enter theplant, the sales organization and the distribution channel for which you want to change amaterial master record. If a material which is available both in plant 1 and plant 2 is to bechanged in plant 1, enter only that plant number. You then only get the plant data for thismaterial in plant 1. If you only enter the sales organization and the distribution channel,then you get the sales-specific data without plant data.

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Using the organizational level distribution channel, you can, for example, sell materialswith different conditions. The prices agreed for distribution channel wholesale trade, forexample, are not the same as those for distribution channel retail sales.

17. Data Structure of the Material Master Record

All data and information entered for a material is stored in the data structure of the materialmaster record. For sales and distribution, general data and sales and distribution data inthe material master record are relevant.

General data

General data in a material master record is identical for every sales organization, plant andstorage location. General data, which is of importance for all departments, is alwaysentered by the department which creates the first part or view of the master record.General data contains, for example, the material number that identifies it, the material

description, units of measure, value, weight, volume and divisions.

Sales and Distribution Data

Sales and distribution data in a material master record is defined for a specific salesorganization and distribution channel. The delivering plant, the assignment to the salesgroup, grouping terms for price agreements and sales texts, for example, are included insales and distribution data. The fact that a material is linked to a distribution channel allowsthe material to be sold with different conditions through the various distribution channels.

Sales and distribution data is divided into data that depends on the sales organization and

data that depends on the plant:

Sales organization/distribution channel dataThis data includes the delivering plant, the sales unit, the minimum order quantityand the minimum delivery quantity.

Plant dataThis data applies to a plant and all its storage locations. Examples of plant data areMaterial Requirements Planning (MRP) data, such as the safety stock quantity, thereorder level, or the shipping processing time.

Sales and Distribution Screens in the Material MasterRecord

Four screens in the material master record are relevant for sales and distribution: Sales 1 Sales 2 Sales/Plant Data Texts in Sales and Distribution

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Units of Measure and Quantity Specifications

Units of Measure

A material can be stored, transported and sold in various units of measure. In the SAP R/3System, you can therefore define various units of measure which are maintained in thesales and distribution screens. However, you only need to maintain the fields of the units ofmeasure if they deviate from the base unit of measure. If no other fields with units ofmeasure are maintained, the system automatically takes the base unit of measure as abasis for its calculations. You can enter the following units of measure in the sales anddistribution screens:

Base Unit of Measure Alternative Unit of Measure Sales Unit Delivery Unit

Base Unit of Measure

Stocks of a material are managed in the base unit of measure. All quantity movements inother units of measure are converted automatically by the system into the base unit ofmeasure.

Alternative Unit of Measure

As soon as units of measures other than the base unit of measure are used in a materialmaster record, the system prompts you in a dialog box to enter a calculation factor to the

base unit of measure, the so-called alternative unit of measure. The alternative unit ofmeasure does not refer to an entry field in one of the sales and distribution screens. It iseither requested in a dialog box or entered on a secondary screen, which you can accessby pressing F5 (Unit of measure). Several alternative units of measure can be defined. If,for example, a product is managed in the base unit of measure "Piece" but is sold in thesales unit "Box", you must define the conversion factor. The alternative unit of measurecan define, for example, that 1 box of this material contains 12 pieces.

Sales Unit

The unit of measure in which materials are sold is referred to as a sales unit (for example,

piece or bottle). The value you define in the material master record is proposed duringbusiness transactions relevant for sales, such as the sales order. You can replace themwith other alternative units of measure in the sales order.

Delivery Unit

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The delivery unit refers to the unit in which materials can be delivered. Only exact multiplesof the delivery unit can be delivered. For example, with a delivery unit of 30 bottles, 30, 60or 90 bottles can be delivered, but not 100 bottles.

Quantity Specifications

Two different quantity specifications are used: Minimum Order Quantity Minimum Delivery Quantity

Minimum Order Quantity

The minimum order quantity refers to the minimum quantity the customer must order. Awarning message appears if the minimum order quantity is not reached during order entry.The order can be entered in spite of the warning message.

Minimum Delivery Quantity

The minimum delivery quantity refers to the minimum quantity you must deliver to thecustomer. The minimum delivery quantity is automatically checked during deliveryprocessing. A warning message appears during delivery processing if you enter a deliveryquantity lower than the minimum delivery quantity. The delivery can be created in spite ofthis warning message.

18. Delivering Plants

The delivering plant refers to the plant from which the goods are to be delivered to the

customer, within a specific sales organization and distribution channel. The plant can beautomatically proposed by the system when processing a sales order, if it has beenmaintained in one of the master records. It can be derived from:

the customer/product info record the customer master record of the ship-to party the material master record.

The order of priority is as in the list above.

19. Customer Material Information

Data on a material defined for one specific customer is stored in the customer materialinformation records. This data includes

the customer-specific material number the customer-specific material description customer-specific data on deliveries and delivery tolerances

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If, for example, one of your customers uses a number for a material, which differs from thenumber your company uses to identify it, you can store the material number used by thecustomer in the customer material information record.

Features

During order entry, items can be entered by specifying the material number used by thecustomer. You also enter a customer material number in the order view of the sales order.You can then use both material numbers during the order entry, the material number yourcompany uses or the one defined by the customer, because the system can carry outallocation automatically.

Data on the delivery and the individual delivery tolerances agreed upon with the customerfor the material in question can also be checked and transferred to the sales order item.

You can also store a text in the customer material information record. It is copied to therelevant SD document items during text determination. In Customizing, the text type

Customer Material Textis provided for this.

20. Sales Transaction Processing

Sales allows you to execute different business transactions based on sales documentsdefined in the system.

Four groups of sales documents are differentiated: Customer inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements Complaints, such as free of charge deliveries, credit and debit memo requests and

returns

Deliveries and billing documents can be created and processed from the sales document.Some sales documents, such as cash sales and rush orders, automatically trigger thecreation of subsequent deliveries and billing documents.

21. About Sales Documents

Sales-related business transactions are recorded in the system as sales documents.These are grouped into four categories: Pre-sales documents: inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements Customer problems and complaints, leading to free-of-charge deliveries and credit

memo requests

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If your particular business processes require it, you can process deliveries and billingdocuments directly from a sales document. In addition, some sales documents, such ascash sales and rush orders automatically trigger the creation of subsequent delivery andbilling documents.

Basic Functions Within Sales Order Processing

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 Creating printed or electronically transmitted documents (confirmations and so on)

Depending on how your system is configured, these functions may be completely

automated or may also require some manual processing. The data that results from thesebasic functions (for example, shipping dates, confirmed quantities, prices and discounts) isstored in the sales document where it can be displayed and, in some cases, changedmanually during subsequent processing.

Document Flow in Sales

The sales documents you create are individual documents but they can also form part of achain of inter-related documents. For example, you may record a customers telephoneinquiry in the system. The customer next requests a quotation, which you then create byreferring to the inquiry. The customer later places an order on the basis of the quotation

and you create a sales order with reference to the quotation. You ship the goods and billthe customer. After delivery of the goods, the customer claims credit for some damagedgoods and you create a free-of-charge delivery with reference to the sales order. Theentire chain of documents the inquiry, the quotation, the sales order, the delivery, theinvoice, and the subsequent delivery free of charge creates a document flow or history.The flow of data from one document into another reduces manual activity and makesproblem resolution easier. Inquiry and quotation management in the Sales InformationSystem help you to plan and control your sales.

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

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The Role of Organizational Structures in Sales Documents

Sales transactions occur within the organizational structure of sales and distribution. Thismeans, for example, that all sales activities are allocated to a sales organization, adistribution channel and a division. Since sales activities within your organization areprocessed in different geographical locations, the system allows you to specify additional

organizational structures that define sales offices, sales groups, and sales people.

22. Sales orders

Request from a customer to a company to deliver a defined quantity of products or providea service at a certain time.

The sales area that accepts the inquiry is responsible for completing the agreement.

In sales order processing, the system implements various functions:

In the sales order, functions such as pricing and printouts are available. The systemchecks whether the material is available for the requested delivery date and if necessary,transfers the requirements to materials planning. Shipping deadlines and shipping pointsare determined in delivery scheduling.

In cash sales the goods are paid for in cash. In a rush order transaction, the customer picks up the goods or you deliver the

goods on the same day as the order is placed. However, the invoice is created later.

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Features

You can process sales orders in the SAP R/3 System differently, depending on yourspecific needs. In the simplest case, you can enter a sales order with several items in asingle screen. The system automatically proposes data from the relevant master records:

From the customer master record of the sold-to party, the system proposes sales,shipping, pricing, and billing data. In addition, the system copies customer-specificmaster data about texts, partners, and contact people at the customer site.

For each material in the sales order, the system automatically proposes data from

the relevant material master records, such as data for pricing, delivery scheduling,availability check, tax determination, and weight and volume determination.

The data proposed by the system can be used as a basis for your order. If your sales orderprocessing requires it, you can modify this data manually or add new data. For example,your pricing policy may allow you to manually change the value of certain discounts withina permitted range. In addition, you can branch in the sales order to a number of differentscreens where you can display and modify data, such as terms of payment and deliverydata.

Using Existing Documents as a Reference

It is also easy to create a new sales order with reference to an existing document. Forexample, if a customer accepts a quotation you sent, the system can copy all the relevantmaster data from the quotation when you create the sales order.

Standard Functions During Order Processing

When you process a sales order using the standard version of the SAP R/3 System, thesystem can automatically carry out basic functions, such as the following:

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Pricing Availability check (if this function is defined in the material master record) Transferring requirements to materials planning (MRP) Delivery scheduling Shipping point and route determination Checking credit limits

Structure

A customer inquiry comprises one or more items that contain the quantity of a material orservice entered in the order.

The total quantity of a sales order item can be subdivided into schedule lines that containthe various subsets with the corresponding delivering dates.

Items can be structured in a hierarchy. This enables you to differentiate between batchesor explode any combinations of materials (bills of material1).

The conditions2 which are valid for the items are listed in the item conditions. Theconditions for an item can be derived from an entire condition, which is valid for the entiresales order.

An item can be subdivided into several billing plan deadlines that each determines a dateon which a fixed amount of the item is to be billed.

Not only the customer but also other business partners can be specified as sold-to partiesin different partner functions (for example, ship-to party).

The items in a sales order can be taken from the times in a customer quotation.

Delivery Times/Commitment Dates in Sales Orders

You can enter a delivery time in contracts and quotations.

In the contract, the delivery time fixes the time period that the customer has given thevendor between contract release and delivery receipt.

1Bill of Material (BOM):A complete, formally structured list of the components that make up a product orassembly. The list contains the object number of each component, together with the quantity and unit ofmeasure. The components are known as BOM items.

2Conditions: Prices, surcharges/discounts, tax, and other costs according to the influencing factors selected(such as vendor, customer, customer group, vendor sub-range, material, and service). It remains valid for aspecified period. Example: From Jan 1 to June 30 of the current year, a price of USD 150 is agreed withcustomer Miller Inc. for purchase of the "luxury shelves" material from sales organization "North" anddistribution channel "Retail".

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In quotations, the delivery times enables you to agree on a guaranteed maximum deliverytime once the order has been entered.

In the sales order, a committed quantity and date are issued alongside the confirmedquantity calculated by the availability check, which enables you to see whether committedquantities and delivery dates have been complied with.

Features

You can specify the delivery time at header level and this influences the delivery times forall items in a quotation or contract but you can also enter different delivery times for singleitems at item level.

Enter the delivery time at header level in the Delivery time field on the Sales tab page forthe overview screen. Enter the delivery time at item level in the item table in the DlyTimefield.

When you create a sales order with reference to a contract or quotation the system copiesthe delivery time into the sales order item. If you do not enter a delivery, nothing changesin sales processing.

Commitment Dates in the Sales Order

In the schedule line screen for the sales order items there are fields for the committedquantities and dates.

In a normal sales order, the commitment date results from the first availability check. If asecond availability check results in different data, you can compare the two to see if the

availability situation for a sales order item has improved or deteriorated.

The commitment date is calculated using the delivery time in contract releases with adelivery time, or in sales orders that refer to a quotation with a delivery time. Thecommitted quantity is calculated from the agreed delivery time or from the confirmedquantity, according to the settings you made in Customizing. If you change the material,quantity, delivery date or delivery time in the sales order, the system recalculates thecommitted quantity.

You can configure how the commitment dates are calculated in Customizing for the salesdocument type in the Commitment date field. You can choose one of the following rules:

A: Consider agreed delivery time only

Here, all the required schedule lines are committed for the date that follows thedelivery time at the distance agreed on when you entered the sales order. If thecustomer requires a later date, this date is confirmed. The commitment situationdoes not influence the calculations and if you dont specify a delivery time, the

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system does not calculate any committed quantities.

B: Calculation after the first confirmation date

The committed quantity is calculated from the first commitment situation. If adelivery time is available for the item, the system takes it into account in calculation

rule A and the system commits the quantity for the earlier date. If you change thematerial, quantity, delivery date or delivery time in the sales order, the systemrecalculates the committed quantity. In each case the current commitment situationis valid when you save the document.

C: Calculation after the first confirmation date

If you enter new items, rule C corresponds to rule B. If you save the documentagain and the customers commitment situation has improved, the system saves thebetter situation as the committed one. As in calculation rule B, the systemrecalculates the commitment dates if you change the material, quantity, requested

delivery date or delivery time.

No entry: The system does not calculate or display commitment dates.

The committed delivery date is issued in the order confirmation and the agreed deliverytime is included in the printout of the contracts and quotations.

Delayed Sales Order Indicator

There is a status field for the sales order header and items that specifies whether theavailability check has covered the commitment for undelivered order quantities. If you

choose matchcode M, you can display all sales documents that have the "delayed" status.A delayed sales order is one where the committed quantities could not be eithercompletely or partially committed, or where the quantity will be not be confirmed ascommitted until a later date.

23. Returns

A sales document that is used in complaints processing for when a customer returnsgoods.

If the customer returns damaged goods, or goods that were delivered for sale on approval,you can enter a return in the system.

The return causes the system to create a returns delivery to register that the goods have been received, and post the

goods to stock (e.g. blocked stock) create a credit memo, once you have checked the goods and approved the

complaint

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Header data

The general data that is valid for the entire document is recorded in the document header.For example,

Number of the sold-to party Number of the ship-to party and the payer Document currency and exchange rate Pricing elements for the entire document Delivery date and shipping point

Item data

Whereas data in the document header applies to all items in the document, some dataapplies only to specific items. This data is stored at item level and includes the:

Material number Target quantity for outline agreements Number of the ship-to party and the payer (an alternative ship-to party or payer can

be defined for a particular item) Plant and storage location specifications Pricing elements for the individual items

Schedule line data

An item consists of one or more schedule lines. The schedule line contains all the data thatis needed for a delivery. For example, a customer orders 20 units of a particular materialwhich you enter as one item in the sales order. However, you can only deliver 10 piecesnow and the remaining 10 pieces next month so you need to schedule two deliveries. Thedata for these deliveries (dates, confirmed quantities) are stored in two separate schedule

lines. In sales documents where delivery data is not relevant, for example, contracts, creditand debit memo requests, the system does not create any schedule lines.

Data recorded in the schedule lines includes the: Schedule line quantity Delivery date Confirmed quantity

25. Structure and Data in a Sales Document

The user interface provides you with the following advantages for processing sales

documents: Easy navigation between different processing screens Less switching between screens during processing Transparent display of data Complete display of processing screens even on smaller computer screens

The interface with its flexible tables allows you to adjust the display to meet yourrequirements during processing. You can alter the width of the columns and their

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sequence to suit your way of working by simply dragging the mouse. You can then saveyour different version of the display as a variant.

An essential element of the interface is the tab page which looks like a box of index cardswhere you can easily find what you need. Each tab page has a title which is constantlyvisible. By simply clicking on the tab page title, you can bring the page in the box into the

background, and process it if necessary.

This tab page technique means that all the data that belongs together can be displayedtogether, even if the display area available is limited.

The essential data in a sales document is contained on the following screens; each screenin the standard system has several tab pages:

Overview screen Tab pages: Sales, Item overview, Item Detail, Ordering party,Procurement, Shipping, Reason for rejection

Header screen Tab pages: Sales, Shipping, Billing, Payment cards, Accounting,Conditions, Account assignment, Partners, Texts, Purchase order data, Status,

Additional data A and B Item screen Tab pages: Sales A and B, Shipping, Billing, Billing Plan, Country,

Conditions, Account assignment, Schedule lines, Partners, Texts, Purchase orderdata, Status, Structure, Additional data A and B

You can also use icons to help you to switch between these tab pages quickly and easily.

Overview Screen

The overview screen provides the user with a choice of data for the document header.Under the display area, there is a table with the items for the document.

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From this overview screen, you can switch between several tab pages. The Sales tabpage contains important fields from the document header so it is particularly useful whenyou create the document for the first time. In Customizing, you can define which fieldsshould be hidden. This gives you more space for the items.

The Item overview screen displays a limited amount of header data - and again this

provides more room for the items.

The Ordering party, Procurement, Shipping, and Reason for rejection tab pages displaydata for the relevant area. The Procurementtab page shows both the items and theschedule lines.

Using the Configuration tab page, you can gain an overview of characteristic attributes for

an item quickly and easily. This display possibility is particularly useful for materials with arelatively simple configuration, and for when you work with models, in which essentialcharacteristics occur again and again. The Configuration tab page is only displayed in thesales document if you have maintained the characteristics display. If no entries areavailable in Customizing, the tab page is not displayed.

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Header Screen

The header screen contains several tab pages with data from the document header.Two tab pages forAdditional Data A andAdditional Data B and the latter can be designedto suit your needs.

Item Screen

The item screen displays data on an individual item for the document. Even here, there areseveral tab pages to choose from. Similar to the header screen, the tab pages in the itemscreen make data from the previous three detail screens for sales, shipping and billingdirectly accessible.

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Additional Screens

Schedule Lines

The overview, header and item screens do not contain all the data for a sales document.Instead, you can go to the Schedule line tab page from the Item screen to see a scheduleline in the Schedule Line screen. (This can also be done by double-clicking on themagnifying glass under the schedule line table.) This screen contains detailed information

for a single schedule line.

Navigation

You can switch between the Overview, Headerand Item screens quickly by going to Gotoin the menu bar. This enables you to switch to the required tab page with only a serveraccess.

Areas from which you can switch to a detailed screen by double-clicking, are opticallyhighlighted. These areas are visualized via a changed cursor form on the relevant object(in the standard system, the cursor takes on the shape of a hand). By double-clicking,

detailed information can be called up in sales document processing for the followingobjects:

Sold-to parties, Ship-to parties

By double-clicking on the sold-to party or ship-to party, you will reach the Partners tabpage at header level.

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Purchase order data, Purchase order number

By double-clicking on the purchase order date or purchase order number, you will reachthe Purchase order data tab page at header level.

Quick Input of Data with Subscreens

In order to enter document data quickly and effectively, it is important that you can enter allimportant detailed data for sales order header and item at once, and that this is availableat a glance.

For this reason, the Sales and Item detailtab pages are enhanced. You can use these toreproduce detailed data for header and item. The entire amount of detailed data for headerand item are available to you for the subscreens.

In the standard system, these additional subscreens are filled with a choice of fields.

Using transaction variants, you can fill these subscreens with further fields, or fade outfields you do not need. This means you can define how big the input area should be for theheader data and which fields should be displayed individually. As from a certain number offields on the subscreen, the system automatically maps a scroll bar for this screen area.

You can assign individual order types to transaction variants.

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26. Data From Master Records

When you create a sales document without referring to a preceding document, the systemcopies the following data from the master records:

Data about the sold-to party and other partners (for example, ship-to party or payer)from the customer master records

Item data from the material master record Data from any relevant customer-material information records

The following graphic shows some of the data that is either transferred to the salesdocument or determined in the sales document.

Data From the Customer Master Record

Among other things, the name of the sold-to party as well as agreements forcompletedeliveries and order combinations are copied from the customer master record into thedocument. You can change this data for each transaction.

The document contains data that can be entered in the header and in the items. Theheader data here normally applies to the items as well. For example, payment terms,Incoterms3, partner functions, and the delivering plant are copied from the customermaster records of the business partner into the document and the items. You can changethe data in each item.

Deviating Item and Header Data

3INternational COmmercial TERMS - Codification of international rules for the interpretation of the mostcommonly used terms in international trade. They define the terms of sale and the passing of risks for importand export of merchandise. See SAP Help Glossary for list of 13 specified terms.

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A sales document may include items where some of the business data differs from thebusiness data in the header. You can review items where the data varies with the headerdata by selecting Edit-> Display criteria -> Own business data from the Overviewscreen.You reach an overview screen that contains only the items for which the data is defined. Ifyou enter general business data for an item which deviates from the data in the document,subsequent changes to the data in the document header have no effect on this item.

Example: The payment terms ZB01 are copied from the document header into theitems. You change the payment terms for item 20 to ZB02. If you then change theterms of payment in the header later to ZB03, it will not affect item 20. If you alsodecided to change the Incoterms in the document header from FOB to EXW this willnot affect item 20 either.

Data From Different Business Partners

Sometimes the customer master record specifies different partners for the various partnerfunctions. For example, you may define several ship-to parties for a single sold-to party. In

addition, you can define different partners for receiving and paying invoices. Each partnerhas its own customer master record and, during sales order processing, the systemautomatically copies data from the customer master record of the relevant partner into thesales order. For example, for each different ship-to party, the system copies theappropriate delivery and shipping data from the customer master record into thedocument.

The following graphic shows an example in which the sold-to party, ship-to party, andpayers are all different. The payment terms are copied from the customer master record ofthe payer, while the destination address is copied from the customer master record of theship-to party.

Data From the Material Master Record

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The system copies data from the material master record and copies it into the individualitems. This includes data about weights, delivery priorities, as well as over- andunderdelivery rules. You can change this data for each business transaction.

How the System Determines the Delivering Plant

You can enter the delivering plant in the customer master record and in the materialmaster record. A value is proposed for the delivering plant according to the followingcriteria:

If

the delivering plant is definedin ...

Then the system

proposes the delivering plant from ...

The material master only the material master

customer master only the customer master (if the material has not been maintained forthe plant in question)

The material and customer masterrecords

the customer master(if the material has not been maintained forthe plant in question)

The material and customer masterrecords

the material master(if the material has not been maintained fordelivering plant defined in the customermaster)

The delivering plant is proposed from the customer master record of the ship-to party.Keep this in mind in case the ship-to party is different from the sold-to party.

27. Data Determined by the System

Some data in the sales document consists of a combination of different factors, such ascustomer and material, and cannot therefore be copied directly from the customer or

material master records to the document. Instead, the system has to determine the dataseparately for the different factors at different times. For example, when you configure yoursystem for Sales and Distribution, you can save the data for different delivery routesseparately from the master data, dependent on the location of the delivery plant and theship-to party. As long as the necessary data has been saved, the system can thendetermine the delivery route automatically during sales order processing. The followingdata can also be defined in advance to be determined during processing:

Prices, discounts and surcharges

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Data for delivery scheduling Shipping point

28. Pricing and Conditions

The termpricingis used broadly to describe the calculation of prices (for external use bycustomers or vendors) and costs (for internal purposes, such as cost accounting).Conditions represent a set of circumstances that apply when a price is calculated. Forexample, a particular customer orders a certain quantity of a particular product on a certainday. The variable factors here - the customer, the product, the order quantity, the date -determine the final price the customer gets. The information about each of these factorscan be stored in the system as master data. This master data is stored in the form ofcondition records.

The Condition Technique in Pricing

The condition technique refers to the method by which the system determines prices frominformation stored in condition records. In Sales and Distribution, the various elementsused in the condition technique are set up and controlled in Customizing. During salesorder processing, the system uses the condition technique to determine a variety ofimportant pricing information. For example, the system automatically determines whichgross price the customer should be charged and which discounts and surcharges arerelevant given the conditions that apply.

Example of Pricing in the Sales Order

The following figure shows how the condition technique works in the background toproduce the pricing information. The diagram shows how the various elements in thecondition technique work together.

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1. The system determines the pricing procedure according to information defined in

the sales document type and the customer master record.2. The pricing procedure defines the valid condition types and the sequence in which

they appear in the sales order. In the example, the system takes the first conditiontype (PR00) in the pricing procedure and begins the search for a valid conditionrecord.

3. Each condition type in the pricing procedure can have an access sequenceassigned to it. In this case, the system uses access sequence PR00. The systemchecks the accesses until it finds a valid condition record. (Although you cannot see

this in the diagram, each access specifies a particular condition table. The tableprovides the key with which the system searches for records).4. In the example, the first access (searching for a customer-specific material price) is

unsuccessful. The system moves on to the next access and finds a valid record.5. The system determines the price according to information stored in the condition

record. If a pricing scale exists, the system calculates the appropriate price. In theexample, the sales order item is for 120 pieces of the material. Using the scale pricethat applies to quantities from 100 pieces and more, the system determines a priceof USD 99 per piece.

The system repeats this process for each condition type in the pricing proceduredetermines a final price.

29. Pricing Procedures

The primary job of a pricing procedure is to define a group of condition types in a particularsequence. The pricing procedure also determines:

Which sub-totals appear during pricing To what extent pricing can be processed manually

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Which method the system uses to calculate percentage discounts and surcharges Which requirements for a particular condition type must be fulfilled before the

system takes the condition into account

Example of a Pricing Procedure

If a sales department processes sales orders for a variety of foreigncustomers, the department can group the customers by country or region. Apricing procedure can then be defined for each group of customers. Eachprocedure can include condition types that determine, for example, country-specific taxes. In sales order processing, you can specify pricing proceduresfor specific customers and for sales document types. The systemautomatically determines which procedure to use.

Pricing Procedures in the R/3 System

The standard system contains pre-defined pricing procedures, which contain frequently

used condition types along with their corresponding access sequences. You can, ofcourse, modify these procedures or create your own from scratch.

30. About the Availability Check in Sales and

Distribution Processing

When you enter a sales order, you can only confirm the delivery of the goods for therequired delivery date if the goods are available for all the necessary processing activitieswhich take place before delivery:

The shipping department must ensure that freight forwarding or another shipping companyis advised early enough so that sufficient time remains for packing and loading to becarried out. An availability check can be carried out on the deadline date for availability forthe goods.

The procurement department must ensure that the production and purchasingdepartments are advised of inadequate stock quantities so that goods can either beproduced punctually or ordered. Sales transfers the information on materials ordered asrequirements to material requirements planning (MRP). Requirements are plannedoutward movements of stock. The transfer of requirements informs production that goods

must be produced, or advises purchasing that purchase requisitions have been created forwhich purchase orders must be created and sent to the suppliers. An availability check canonly be carried out if these requirements are transferred.

31. Shipping

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Shipping is an important part of the logistics chain in which guaranteed customer serviceand distribution planning support play major roles. In shipping processing, all deliveryprocedure decisions can be made at the start of the process by

Taking into account general business agreements with your customer Recording special material requests Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in which manual changesare only necessary under certain circumstances. The Shippingcomponent is integratedunder the Logistics Execution component. Shipping is a subsequent activity of the Salescomponent.

Range of Functions

The shipping module supports the following functions, which include but are not limited to: Deadline monitoring for reference documents due for shipment (sales orders and

purchase orders, for instance) Creating and processing outbound deliveries Planning and monitoring of worklists for shipping activities

Monitoring material availability and processing outstanding orders Monitoring the warehouse's capacity situation Picking (with optional link to the Warehouse Management system) Packing deliveries Information support for transportation planning Support of foreign trade requirements Printing and transmitting shipping documents Processing goods issue Controlling using overviews of

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o Deliveries currently in process

o that still are to be carried out

o Possible bottlenecks

A list of deliveries posted as goods issue in the shipping department could be used toform a worklist for the billing department.

32. Creating Outbound Deliveries

As soon as the material availability date or the transportation scheduling date for aschedule line is reached, the schedule line becomes due for shipping. When you create anoutbound delivery, you initiate shipping activities such as picking and transportationscheduling.

A delivery is processed through one shipping point. Which shipping point carries out theprocessing for a delivery can be determined automatically during order processing or you

can specify it manually in the order.

The system carries out the following activities when an outbound delivery is created: Checks the order and materials to make sure the outbound delivery is possible (for

example, it checks for delivery blocks or incompleteness) Determines the delivery quantity of an item and checks the availability of the

material Calculates the weight and volume of the delivery Calculates work expenditure Packs the outbound delivery according to the reference order Checks the delivery situation of the order and any partial delivery agreements Redetermines the route Adds information relevant for export Checks delivery scheduling and changes deadlines (if necessary) Assigns a picking location Carries out batch determination (if material is to be handled in batches) Creates an inspection lot if the material must pass a quality check Updates sales order data and changes order status

You can make changes in a delivery after it is created if the delivery situation changes inany way. In addition, you can confirm picked quantities using the change function, or usethe display function to access shipping information in a delivery.

Order items or schedule lines that have identical shipping criteria are combined in onedelivery. If data varies between items, for example, if a different ship-to party is defined foreach item, two deliveries must be created for the order. Order items from different orderscan be grouped together in one delivery provided that they have identical shipping criteriaand that the sold-to party agrees.

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33. Updating Delivery Status in Sales Orders

The order is updated when the delivery is created. The delivery status is updated atheader and item level. This is illustrated in the following figure.

Delivery Status in the Order

You will find the delivery status of the individual items and of the entire order on the statusscreen at item and at header level respectively.

The delivery status of the entire order results from the delivery status of the items. Until allitems in the order have been fully delivered, the order has the status "Partially delivered".The entire document acquires the status of fully delivered once all the items have beenfully delivered.

If you enter a delivery for the sales order, you must always specify the shipping point fromwhich the sales order is to be delivered. The shipping point cannot be changed in thedelivery.

34. PickingThe picking process involves taking goods from a storage location and staging the rightquantity in a picking area where the goods will be prepared for shipping.

Regardless of how your company executes the picking process, you can make settings inthe system so that picking is carried out

Automatically during Outbound Delivery Creation Routinely at certain times

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Manually according to overviews of the day's workload that an employee hasrequested

A Picking Status is recorded in each delivery item for the purpose of scheduling andmonitoring the picking process. This status indicates where the item is in the pickingprocedure (picking has started for item A, for instance).

In the system standard settings, it is a prerequisite for goods issue to be posted before theitem relevant for picking can be picked completely. Therefore, delivery quantity and pickingquantity (picked quantity) in the outbound delivery must be equal.

The Warehouse Management System (WMS) module is fully integrated in Logistics

Execution (LE). For example, you can create a WM transfer order directly from theoutbound delivery. The current status of the warehouse management process can also bemonitored from the delivery, for instance.

You can transfer all data relevant for picking and verification of picking data to asubsystem by using the Delivery Interface.

By using message control, data can be transferred to a subsystem that is being used forpicking (see also: Delivery Interface).

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Depending on the picking procedure being used, you can either determine delivery-relevant data before picking or wait until after picking is completed to record it. Delivery-relevant data may be made up of the following:

Which batches a material is picked from Which serial numbers are picked Which valuation types the stock is taken from

35. Packing

Packing is part of delivery- and shipment processing. When you process a delivery, youcan select delivery items for packing and assign them to handling units(HUs).

Range of Functions

As an example, you could pack delivery items in boxes, pack the boxes on pallets fordelivery to the customer, and load the pallets onto a truck.

The Packingcomponent and related packing information enables you to: Update the stock situation of packing materials Monitor returnable packaging stocks at the customer's or forwarding agent's place

of business Help you find you what was in a particular container (for example, if a customer

maintains that they have received an incomplete delivery) Make sure that the weight and volume limits have been adhered to Ensure that products have been packed correctly

36. Goods Issue

As soon as the goods leave the company, the shipping business activity is finished. This isillustrated using goods issue for outbound deliveries.

You have the following options for posting goods issue: Goods Issue Posting for individual outbound deliveries Goods Issue in Collective Processing to post goods issue for multiple outbound

deliveries Goods Issue in Collective Processing for posting goods issue for multiple outbound

deliveries in the background without manual intervention Posting Goods Issue for an Entire Shipment

Range of Functions

The outbound delivery forms the basis of goods issue posting. The data required for goodsissue posting is copied from the outbound delivery into the goods issue document, whichcannot be changed manually. Any changes must be made in the outbound delivery itself.In this way, you can be sure that the goods issue document is an accurate reflection of theoutbound delivery.

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When you post goods issue for an outbound delivery, the following functions are carriedout on the basis of the goods issue document:

Warehouse stock of the material is reduced by the delivery quantity Value changes are posted to the balance sheet account in inventory accounting Requirements are reduced by the delivery quantity The serial number status is updated Goods issue posting is automatically recorded in the document flow Stock determination is executed for the vendor's consignment stock A worklist for the proof of delivery is generated A worklist for the proof of delivery is generated

After goods issue is posted for an outbound delivery, the scope for changing the deliverydocument becomes very limited. This prevents there being any discrepancies between thegoods issue document and the outbound delivery.

37. Goods Issue PostingWhen processing individual outbound deliveries, you can also post goods issue for themdirectly.

In order to post goods issue, all necessary shipping activities must be completed. Theseactivities include:

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When you enter the goods issue, you can print the goods issue slip at the same time.

Stock Update

The following stocks are reduced by the issued quantity: total valuated stock unrestricted-use stock reserved stock if the goods issue is entered with reference to a reservation or an

order.

From the point of view of Materials Planning, available stock remains unchanged whenposting a planned goods issue because the quantity withdrawn was reserved andtherefore no longer available anyway. When posting a goods issue without reference to areservation or an order, available stock is reduced accordingly from the point of view ofMaterials Planning.

The stocks are updated both at plant level and at storage location level.

Update of G/L Accounts

When the goods issue is posted, the system automatically creates posting lines on theaccounts of the accounting system.

Consumption Update

In addition to causing an inventory update in the material master record, a goods issueposting causes an update of the consumption statistics if the material is planned with MRP.You can see the consumption statistics when you display plant stock availability or the

material master record. MRP uses the consumption statistics of a material for creatingforecasts. In doing so, MRP distinguishes between