SD Study Material Part 1

8/11/2019 SD Study Material Part 1

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SD Study material -Part I

1. SAP Screen Elements _________________________________________________________ 4

2. Enterprise Structure ___________________________________________________________ 6

ORGANIZATIONAL UNITS _____________________________________________________________ 7

Attributes & Application _________________________________________________________________ 12

3. MASTER DATA ________________________________________________________________ 13

4. CUSTOMER MASTER DATA ____________________________________________________ 15

Customer Master Mass Maintenance (T. Code: MASS or XD90) ______________________________ 23

CUSTOMER MATERIAL INFORMATION RECORD: ______________________________________ 24

5. COMMON DISTRIBUTION CHANNELS & DIVISIONS: ______________________________ 25

6. CUSTOMIZATION OF CMD or ACCOUNT GROUP: ________________________________ 29

6. MATERIAL MASTER DATA _____________________________________________________ 32

Material Master Mass Maintenance (T. code: MASS, _______________________________________ 38

8. SALES DOCUMENTS ___________________________________________________________ 39

Sales order: ____________________________________________________________________________ 41

STRUCTURE OF SALES DOCUMENT: ___________________________________________________ 41

FUNCTIONS OF SALES DOCUMENT: ___________________________________________________ 43

Types of Sales Documents used in Business process ___________________________________________ 44

Sources for Document Data ______________________________________________________________ 59

Sales Document (VOV8) DETAILS: _______________________________________________________ 62

9. SPECIAL BUSINESS TRANSACTIONS (Cash order & Rush order sales) ____________ 63

10. ITEM CATEGORY ______________________________________________________________ 67

FUNCTIONALITY OF ITEM CATEGORY ________________________________________________ 68

Types of Item Category __________________________________________________________________ 68

ITEM CATEGORY DETERMINATION ___________________________________________________ 70

11. SCHEDULE LINE CATEGORY __________________________________________________ 70

Schedule Line Category Controls __________________________________________________________ 71

12. SALES ORDERS ______________________________________________________________ 73

Blocking Sales Orders ___________________________________________________________________ 74

Setting a Delivery Block _________________________________________________________________ 74

BASIC FUNCTIONS ______________________________________________________________ 75

13. PARTNER DETERMINATION: VOPA ____________________________________________ 75

Partner Types and Assigned Partner Functions ______________________________________________ 77

14. CONDITION TECHNIQUE STEPS _______________________________________________ 80

15. OUTPUT DETERMINATION ____________________________________________________ 81

AppsTwo_SAP_O2C_RP Sept 2011


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16. MATERIAL DETERMINATION __________________________________________________ 85

17. MATERIAL LISTING & EXCLUSION _____________________________________________ 87

18. PRODUCT PROPOSAL / ITEM PROPOSAL ______________________________________ 88

19. BILL OF MATERIALS (BOM): __________________________________________________ 89

20. CONSIGNMENT STOCK PROCESSING _________________________________________ 92

21. THIRD PARTY ORDER PROCESSING _________________________________________ 110 Process Flow for 3rd Party Sales _________________________________________________________ 115

22. SALES INCOMPLETION LOG / INCOMPLETION LOG ___________________________ 118

23. SHIPPING ___________________________________________________________________ 124

SHIPPING POINT DETERMINATION: __________________________________________________ 125

OUT BOUND DELIVERY IN SHIPPIG (VL01N) __________________________________________ 129

TYPES OF DELIVERY DOCUMENTS ___________________________________________________ 130

DELIVERY SCHEDULING ____________________________________________________________ 136

ROUTE DETERMINATION ____________________________________________________________ 138 BATCHES ___________________________________________________________________________ 144

SERIAL NUMBERS ___________________________________________________________________ 145

PRICING IN THE OUTBOUND DELIVERY ______________________________________________ 146

PICKING IN SHIPPING (LT03) _________________________________________________________ 148

GOODS ISSUE in SHIPPING (VL02N) ___________________________________________________ 158

EFFECTS OF GOODS ISSUE POSTING _________________________________________________ 159

PROOF OF DELIVERY (POD) __________________________________________________________ 161

24. BILLING _____________________________________________________________________ 162

STRUCTURE OF BILLING DOCUMENT ________________________________________________ 163

BILLING TYPE CONTROLLS __________________________________________________________ 173

COPYING CONTROL _________________________________________________________________ 188

BILLING DOCUMENT TYPE: __________________________________________________________ 197

BILLING DOCUMENT CONTROLS: ____________________________________________________ 197

SUMMARY OF BILLING ______________________________________________________________ 199

BILLING FI POSTINGS ______________________________________________________________ 203

SD / FI INTERFACE IN BILLING DOCUMENT __________________________________________ 205

Reference Numbers and Allocation Numbers _______________________________________________ 207

SD / CO - PA Interface _________________________________________________________________ 208

25. CUSMTOMER COMPLAINTS __________________________________________________ 211

26. PRICING ____________________________________________________________________ 223

Functionality of Condition Types: ________________________________________________________ 230

Different Condition Types in Pricing ______________________________________________________ 239

HEADER & ITEM CONDITIONS _______________________________________________________ 245



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PRICING SCALES ____________________________________________________________________ 246

CONDITION SUPPLEMENTS __________________________________________________________ 247

PRICING LIMITS (UPPER & LOWER LIMITS): _________________________________________ 247

CONDITION UPDATE ________________________________________________________________ 248

CONDITION EXCLUSION GROUP _____________________________________________________ 248

FREE GOODS DETERMINATION ______________________________________________________ 250

Bonus Buy ____________________________________________________________________________ 255

ADVANCEED PRICING _______________________________________________________________ 259

Understanding certain complex pricing requirements ________________________________________ 263

Release Procedure for conditions _________________________________________________________ 275

27. REBATE AGREEMENTS ______________________________________________________ 278

Retroactive Rebate Processing ___________________________________________________________ 282

28. CREDIT MANAGEMENT ______________________________________________________ 285

Update group _________________________________________________________________________ 290

SUMMARY OF CREIDT MANAGEMENT CONFIG STEPS ________________________________ 294

Additional checks - in Automatic credit control _____________________________________________ 298

29. INTERCOMPANY SALES & BUSINESS PROCESSING __________________________ 301

Pre-requisites for Inter company sales processing ________________________________ 302

FI posting in Intercompany sales process __________________________________________________ 310

30. AVAILABILITY CHECK _______________________________________________________ 317

Types of Availability Check _____________________________________________________________ 317

Prerequisites for Availability Check ______________________________________________________ 319

Availability Check - Configuration _______________________________________________________ 321

TOR Configuration___________________________________________________________________ 327

Availability Check with RLT: ___________________________________________________________ 331

31. CROSSING SELLING _________________________________________________________ 333

32. Batch Management __________________________________________________________ 336



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1. SAP Screen Elements

Command field: You can use the command field to go to applications directly by entering thetransaction code. You can find the transaction code either in the SAP Easy Access menu tree (seenext slide) or in the relevant application under System Status .

Menu bar: The menus shown here depend on which application you are working in. Thesemenus Contain cascading menu options.

Standard toolbar: The icons in the system function bar are available on all R/3 screens. Anyicons that you cannot use on a particular screen are dimmed. If you leave the cursor on an icon fora moment, a small flag will appear with the name (or function) of that icon. You will also see thecorresponding function key. The application toolbar shows you which functions are available inthe current application.

Title bar: The title bar displays your current position and activity in the system.Check boxes: Checkboxes allow you to select several options simultaneously within a group.

Radio buttons: Radio buttons allow you to select one option only.Status bar: The status bar displays information on the current system status, for example,warning and error messages.

A tab provides a clearer overview of several information screens.Options: You can set your font size, list colors, and so on here.

What is full form IMG and SPRO?

IMG :- Implementation Guide.SPRO: - SAP Project Reference Object.



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2. Enterprise Structure

Enterprise Structure or Organizational Structure is a framework in which all business transactions canbe processed.

ENTERPRISE STRUCTURE IN SAP

Level EnterpriseStructure Organization Structure in SAP Module

1 Cost Account Controlling Area CO2 External Logistics Sales Org Purchase Org SD / MM3 Accounting Company Code FI

4 Valuation Areas MM

5 Internal Logistics Plants MM

6 Inventory Mgmt Slocs/ Special Stocks / Batches MM

Company Code: it is the company for which we implement SAP. It is defined by FI. (4 digitscode). It is the highest level of organizational element in Ent Stru, which allows postingrevenues to G/L accounts.

Sales Organization: (4 digits code) is an organizational unit responsible for sale anddistribution of goods and services.

Distribution Channel: (2 digits code) is a channel through which goods or services reach thecustomer.

Division :( 2 digits code) the range of goods or services that the company manufactures fallsinto different divisions.

Sales Area: combination of Sales Organisation, Distribution Channel and Division.

Distribution chain: combination of Sales Organisation and Distribution Channel. Sales Office: geographical aspect of the organization. Sales offices are assigned to salesareas.

Sales District: Also referred as customer districts, can be geographical area or regions. Youfind this field in Customer master data that are copied into the Header & Item data of the salesorder. It is used for statistics purposes as well as for pricing.

Plant: the factory is called the plant in SAP.

RELATION SHIPS: -o Company Code to Sales Organisation: One to Manyo Sales Organisation to Distribution Channel: Many to Manyo Distribution Channel to Division: Many to Many.o

Plant to Company Code: Many to One. In Intercompany: Many to Manyo Plant to Shipping Point: One to Many. Many to Many if in one geo area.o Plant to Sales Organisation: Many to Many.

o Division is always organization specific.o If sales organisation wants to use a plant, that plant must be assigned to the sales orgn.o Master data records are multiplied by each additional organizational element you have.

Menu Path for Sales Orgn/ Distbn Channel/ Sales Office/ Sales Group:SPRO- IMG- Ent. Stru. - Defn. - S.D.- Define, Copy, Delete, Check Sales Orgn/ Distbn Channel/ SalesOffice/ Sales Group.



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Menu Path for Division Creation:SPRO- IMG- Ent. Stru. Defn. Logistics General- Define, copy, delete, check div.

Defining Plant:SPRO- IMG- Ent. Stru. Defn. Logistics General- Define, copy, delete, check plant.A plant, though always linked to one company code, can be linked to several sales organizations.

Assigning Plant to Company Code:SPRO- IMG- Ent. Stru. Assignment- Logistics General- assign plant to company code.

Define Sales District: OVR0SPRO- IMG- Master Data- Business Partner- Customer- Sales- Define Sales District.Assignment Path:SPRO- IMG- Ent. Stru. Assignment Sales & Distbn. :

Assign Sales orgn to company code: company code 4 digits code.Assign Distbn channel to Sales orgnAssign Division to Sales orgnSet up sales areaAssign sales office to sales area

Assign sales group to sales officeAssign plant to sales orgn Distbn channelBusiness area account assignment:

Define rules by sales areaAssign business area to plant & Item Division.Assign business area by sales org, Distribution channel and Item Division.

Organisation in Shipping & Transportation:A delivery is always carried out by one shipping point only.Shipping points are subdivided into loading points.Shipping point is assigned to a plant.

The shipping point depends on the following:Shipping ConditionsLoading GroupDelivering Plant

ORGANIZATIONAL UNITS

1. ORGANISATIONAL STRUCTURE: ENTERPRISE

Structures represent the legal and organizational structure of a company. Structure is possible fromthe point of view of SD, FI & MM. It is possible to combine these structures. The organizationalstructures form a framework in which all business transactions can be processed.

2. ORGANIZATIONAL STRUCTURE: Client

Represents Corporate Group All Org units within a Client are under one Business Control Self contained Technical Unit General Data & Tables are stored at Client Level



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3. ORGANISATIONAL STRUCTURE: Finance / Controlling

a) Company Code (FI, SD): Legal and independent accounting entity. Smallest Org unit in external accounting. Represent Independent Companies in a Group. Required to create balance sheets and profit and loss statements. Company Codes are independent from each other in the legal sense. Each Company Code uses exactly one Chart of Accounts. Several Company Codes can

use same Chart of Accounts All FI transactions are maintained at Company Code level. One Company Code must be created

b) BUSINESS AREA Separate Business Unit for which Cross-Company Code reporting can be carried out Not limited by Company Codes Used to calculate Profit & Loss Statements across Company Codes, only for Internal

Reporting. Business Areas in all Company Codes must have same description. GL Accounts can be posted by Business Area. Assigned to a Sales Area, determined at item level in document based on 3 fixed rules:

Plant and Item Division. Sales Area of the Document. Sales Org, Dist Channel & Item Division.

Optional

4. ORGANISATIONAL STRUCTURE: Sales & Distribution

c) Sales Organization (SD only): Org unit within logistics that structures the Company according to its sales requirements. Responsible for the Sales and Distribution of goods and services. Represents the selling unit as a legal entity. Responsible for product guarantees and other

rights to recourse, for example. Regional subdividing of the market can also be carried out with the help of Sales Orgs. Highest Summation Level in Sales Statistics. Has own Master Data. Each business transaction is processed within a Sales Org and must be specified in all

documents in SD. It is therefore available for all basic functions of SD (such as pricing, availability, etc.). Assignment to Company Code: Many : One Assignment to Plant: Many: Many (Sales Org can be assigned to Plant from another

Company Code -> Inter-Company Billing) Uses of Sales org: A Sales Organization is the highest level of organizational Unit in SD A new Sales Organization should always be created by copying an existing one Sales Organization has address, calendar, Statistical Currency and controls Rebate

Processing, Inter-Company Sales Assigning Sales Organization to Company Code establishes a link between SD and FI

system Reports can be generated at Sales Organization level



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d) Distribution channel (SD only):

Represents the channel through which salable materials or services reach customers (e.g.wholesale, retail and direct sales).

General Structure for distributing goods. Can be used to define responsibilities, achieve flexible pricing, and differentiate sales

statistics. Master data relevant for sales can differ for each Sales Org and Distribution Channel.

Assignment to Sales Organization: Many: Many

e) Division (SD only): Used to group Materials and Services based on responsibility for sales or profits from

saleable materials or services. Product Group or Product Line. Material can belong to one Division only. Assignment to Sales Organization: Many: Many

f) Sales Area (SD only): Combination of Sales Organization, Distribution Channel & Division. Creating a Sales Area allows you to exclude certain combinations of the different

organizational areas. Each SD document is assigned to a Sales Area. Master Data & Analyses can be maintained for a Sales Area. Mapping to Company Code: Many: One (based on assignment of Sales Organization).

g) Distribution Chain (SD only): Combination of Sales Org & Distribution Channel Delivering Plant is assigned to Distribution Chain

h) Common Distribution Channel / Division: Common Dist Channel or Division is representativefor the actual Dist Channels / Divisions assigned to it (defined separately for Customer / MaterialMasters & Condition Masters) . Thus, there is lesser need for Master Data Maintenance in

Customer / Material or Condition Masters.

5. ORGANIZATIONAL STRUCTURE: Sales / Business Development

The Sales Organization is represented by the elements: sales office, sales group and salespersons.

i) Sales Office: Represents geographical aspects of the organization in business development and sales Can be considered as a subsidiary. Establishes contact between the firm and the regional market.

Assignment to Sales Area: Many: Many

i) Sales Group: Subdivision of the staff of the Sales Office. Assignment to Sales Office: Many: Many

j) Salespersons: Sales Representatives. Assigned to Sales Office & Sales Group in Employee Master Record (HR). Can be selected

as Business Partner in Sales Document or Customer Master. Assignment to Sales Office & Sales Group: Many: Many



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6. ORGANIZATIONAL STRUCTURE: Logistics Execution / Shipping

k) Plant (SD, MM): Central Role in Logistics MM: Location where materials are kept PP: Manufacturing facility SD: Location from where goods / services are distributed (must be configured as Delivering

Plant) Essential for determining Shipping Point If Delivering Plant of Distribution Chain belongs to different Company Code, then it leads to

Cross-Company Sales / Inter-Company Billing. Assignment to Company Code: Many : One Assignment to Sales Organization: Many: Many Assignment to Distribution Chain: Many: Many

l) Storage Location (MM): Location where Material Stock is stored. Stock is managed at Storage Location level.

m) Shipping Point (SD): Created at Client Level. Highest-level Org Unit in Shipping. The shipping point is the part of the company that is responsible for the type of shipping, the

necessary shipping materials and the means of transport. Is a physical place and should benear the plant to which it is assigned.

Each outbound delivery is processed by one Shipping Point. Can be set as Goods Receipt Point. Assignment to Plant: Many: Many

n) Warehouse An organizational division of a plant for managing materials stored in different places. Warehouse number Assigned to combination of Plant and Storage Location. Several Storage locations within a Plant can have same Warehouse Number.

2) ORGANIZATIONAL STRUCTURE ASSIGNMENT SUMMARY

Level 1 2 3 4 5 6 7 8 9 10Level

Can be assigned to -> CmpyCode

Chartof

Acct

SalesOrg

DistChanel

DistChain Divi

SalesArea

SalesOff

SalesGroup Plants

ShipPoint

1 One Company Code - One Many - - - Many - - Many -One Chart of Acct Many - - - - - - - - - -

2 One Sales Org > One - - Many x Many X - - Many -3 One Dist Channel > - - Many - x Many X - - - -4 One Dist Chain > - - x X - - - - - Many -5 One Division > - - Many Many - - x - - - -6 One Sales Area > One - x X - x - Many - - -7 One Sales Off > - - - - - - Many - Many - -8 One Sales Group > - - - - - - - Many - - -9 One Plant > One - Many - Many - - - - - Many

10 One Ship Point > - - - - - - - - - Many -



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Attributes & Application

Org Units Attributes Application

Sales Organization Name andAddress

Language andCurrency

Factory Calendar

Rebate Processing Intercompany Sales Account Determination User Level Authorization

Distribution Channel Name Controls Material Master SalesView ( along with Sales Org)

Other master data such asConditions

User Level AuthorizationDivision Name Master Data creation such as

Customer & Conditions A Material belongs to exactly

one DivisionSales Area Assignment Only Pricing Free Goods Output Determination Partner Determination Document Types

Company Code Name andAddress

Language andCurrency

Balance Sheet & Profit & Lossstatement.

Transfers financial Information toControlling

Revenue Accounting

Credit Policies User Level AuthorizationPlant Name and

Address Language and

Currency Factory Calendar

Taxation Inter-company Sales Master data maintenance User Level Authorization

Storage Location Name andAddress

Physical Inventory Delivery Processing Reporting

Shipping Point Name andAddress

Factory Calendar Working hours Lead Time

Delivery Processing Transportation



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3. MASTER DATA

USE:

Master data is centrally stored (shared across departments) and processed to eliminate dataredundancy.

Master Data helps in keeping validation & fast user entry for transactions. One time creation of data which is rarely changed. Only the incremental data required to be

maintained

Master data in SD is divided into 5 main areas:

1. Customer master data :- Customer related information is stored in CMD. The customer master contains all customer-relevant data necessary for processing inquiry,

quotation, order, delivery, invoice and customer payments

Depending on the Configuration settings, Customer Masters can have System generated ormanually assigned numbers

Mostly customers will belong to one Sales Area. They can also be extended to many othersales areas. During order entry SAP will prompt you to choose the relevant one

2. Material master data:- Material related information is stored in MMD. Same Material is used by different Department, hence material has many Views.

Material Master has main view (Basic Data, MRP, Purch. Org) and Additional Views (UOM,Text, etc)

In Material Master some views are maintained at Client Level where as the others aremaintained at other Org level like Plant Level.

The data in Material Masters are either descriptive (name, size, etc) or can control certainfunctions (material grp, procurement key).

Material Master has apprx. 800 fields.

3. Customer material info record:- Customers own description of the material which differsfrom the original material of the organization. Customer Material Info Record is basically used tostore the information about how a particular material is referred by a customer. Customer-Material Info Record has priority over Customer Master & Material Master data. For exampleduring Delivering Plant determination the CM Info Record is accessed first



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4. Condition master data: - Condition Master is stored in the form of Condition record(information on prices, texts, partners, substitute materials etc) during sales order processing,the system uses the condition technique to determine these data

Condition Master Example

All of the pricing elements that you use in your day-to-day pricing procedures - the prices,surcharges, discounts, freight charges, and taxes - are defined in the R/3 system as conditiontypes.

During sales order entry, the system can calculate prices automatically by finding a gross price,deducting all the relevant discounts and adding any surcharges such as freight and sales tax.

Depending on the pricing policies of your company, you may be able to change prices manuallyduring sales order processing. You may, for example, be able to enter or change certaindiscounts within a specified range.

5. Additional master data: - It is nothing but out put master data. It is media of communicationsend to customer thru various ways. Ex: Printout, Email, Fax. Generally SAP looks from the highestlevel of data to the lowest.



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4. CUSTOMER MASTER DATA

The customer master data is the basis for all sales transactions as well as deliveries and payments.A business partner can be a customer and vendor at the same time. You create a link between boththe master records by entering the vendor number in the customer master record and the customernumber in the vendor master record.

Menu path and transaction code for customer creation:Easy access- logistics- SD- master data- business partner- customer- create, change, display.

VD01 & XD01 to create and MK01 to create Vendor

T Code / Views opens General Data Company Code data Sales area dataXD01/02/03 Opens Opens OpensVD01/02/03 Opens X OpensFD01/02/03 Opens Opens X

Structure of Customer Master Data: General data: FI & SD Company code data : FI Sales area data : SD

General Data Screen:General data does not depend on the company code.

1. Address: transportation zone.2. Control Data: Vat Registration No. & Vendor3. Marketing: Customer Classification.4. Payment Transactions: Name of Bank.5. Unloading Points: Goods Receiving Hours. OVSC6. Export Data7. Contact Person.



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ImportantFields

ScreenApplication

Search Term Address Short description used for search helps. All entries are automaticallyconverted into capital letters. There are two such fields for searchterms which can be used independently of each other.

TransportationZone

Address The system automatically proposes a suitable route by using thetransportation zone of the goods recipient in combination with otherinformation about the delivery, such as the Countries of origin anddestination, Shipping conditions & Transportation group.

Country Key Address The country key contains information which the system uses to checkentries such as the length of the postal code or bank account number.

VATRegistrationnumber

Control Data The VAT registration number is used within the EU for tax-exemptdeliveries for the "EC sales list". The check rules are defined for eachEU country and cannot be changed.

Vendor Control Data In case of Stock transfer one plant to another plant. The plant willneed to create as customer & a vendor. The code is maintained inboth the masters.

Industry Marketing Industry code can be used for reporting analysis. (for example)Industry wise sales of the customers).

CustomerClassification Marketing The customer can classify as per the reporting requirements for thatindustry & can be used for reporting.



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Company Code Data Screen: Account Management: Reconciliation account, the reconciliation account in general ledger

accounting is the account, which is, updated parallel to the sub ledger account for normalpostings.

Payment Transactions: Payment terms Correspondence Insurance

ImportantFields

Screen Application

ReconciliationAccount

AccountManagement

This is a mandatory field. The reconciliation account inG/L accounting is the account which is updated parallel tothe sub ledger account for normal postings.

PaymentMethods

PaymentTransactions

List of payment methods which may be used in automaticpayment transactions with this customer/vendor if you donot specify a payment method in the item to be paid.

Terms ofpayment

PaymentTransactions

Key for defining payment terms composed of cashdiscount percentages and payment periods.

DunningProcedure

Correspondence When the customer needs to be send reminders forpayment. Then dunning procedure can be maintained.

Policy Number Insurance In case of export credit insurance, the policy number &amount insured etc details are maintained in Insurancescreen



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Sales Area Data Screen: includes pricing data, delivery priority and shipping conditions.Sales:

Sales Order: Sales District OVR0, Sales Office, Sales Group, Customer Group OVS9, and ItemProposal.

Pricing & Statistics: Price Group, Customer Pricing Procedure & Price List Type.

Shipping: Delivery Priority, Shipping Conditions, Delivering Plant, Order Combination, Complete Delivery,

Partial Delivery & Transportation Zone.Billing: Invoice Dates, Invoice List Dates, Rebates, Inco Terms, Terms of Payment, Account

Assignment Group & Tax Classification.

Partner Functions Screen.



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ImportantFields Screen Application

Sales office Sales Sales Office defines Geographical aspects of the organizationin business development and sales. Used for Reporting.

Sales group Sales The staff of a sales office may be subdivided into salesgroups. Used for Reporting.

Customerpricingprocedure

SalesDetermines which pricing procedure the system should applywhen you create a sales document for the customer.

CustomerStatisticsGroup

Sales Specifies a statistics group for this customer and helpsdetermine which data the system updates in the logisticsinformation system.

ShippingConditions

Shipping General shipping strategy for the delivery of goods. TheShipping condition along with other entities determines theshipping point & Route proposed by the system.

AccountAssignment

Group

Billing Group of customers with the same accounting requirements.The grouping can be domestic customers, foreign customer,

an affiliate customer etc.Taxclassification

Billing The indicator with which the system determines output tax forthe customer when processing sales and distribution-specificdocuments.

Customer Master CIN Details

Additional Component - CIN details enables you to capture the tax related information for thecustomer.This information can be maintained either in customer master additional component - CINdetails or in J1ID CIN master data transaction



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Customer Master Transactions

Transaction Codes Application

VS00 SD Main Menu for CustomerXD01 Create Customer (Centrally)

XD02 Change Customer (Centrally)XD03 Display Customer (Centrally)

XD04 Customer Changes (Centrally)

XD05 Block Customer (Centrally)XD06 Mark for Deletion (Centrally)XD07 Change Customer Account GroupXD99 Mass Maintenance: Indus. Matl Master

VXBC List of Blocked Customers

CREATE WITH REFERENCE: only data, which can be identical for both master records, is copied, fore.g., Address, Unloading points, Vat reg., Contact person, and Tax classification are not copied. Whilecountry, language, account group are.DISPLAYING CHANGES IN CMD:Sales & Distribution: VD04 Several Customers: OV51BLOCKING A CMD: VD05DELETING A CMD: VD06. The master data is deleted after all dependent data has been deleted CHANGING ACCOUNT GROUP: XD07. Changes to the account group and the accompanying partnerfunctions can only be made from a lower level to a higher level.

MAIN MENU BAR IN VD02 CONTAINS:Extras: Customer Account Group details, Blocking Data (VD05), Deletion Flags (VD06),Text data can be maintained.



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Options forMaintaining CustomerMaster Data Purpose Blocking Data This contains blocking of customer at company code level and Sales Areas

level. The posting Block can be for All Company code or Selected CompanyCode. The Sales & Distribution Blocks can be for All Sales Areas or SelectedSales Area for Order, Delivery, and Billing & Sales Support Blocks.

Deletion flag The customer can be flagged for deletion for All Sales Areas or SelectedCompany Code or Selected Sales Area. The deletion blocks can be forGeneral Data or Selected company code including general data. Data recordssuch as Customers & Materials can be flagged for deletion but they do not getdeleted from the system and can be used to process a transaction. To avoidany confusion, the name / description of these records is changed to .

Administrative Data It shows for which account group that customer is created. What levels (i.e.General Data, Company Code Data and Sales Area Data), it has been createdby whom & when.

Confirmation of Change The confirmation of change status can be given central or at company codelevel with changes to sensitive field. The current status can be confirmed orrejected.

Text The customer master text can be maintained for General data level applicableat client level and / or Company code and / or sales area data level.

Customer links toDocuments

Any documents / records with version applicable for that customer can belinked in the customer master data.

Additional CustomerData

SAP provides 10 freely definable fields for attributes & 5 additional fields forcondition determination & pricing.

Environment Credit Management (FD32), Customer Material Info Record (VD51), List Documents(sales orders- VA05)

Options for Maintaining

Customer Master Data Purpose Account Changes This functionality allows you to view changes to all fields or changes to thesensitive fields (for example Payment Terms). Sensitive fields need to beconfigured so in Customizing in FI menu. The changes include Deletions ifany.

Customer MaterialInformation

This menu option directly takes you to the view of the customer material inforecords VD53 transaction.

Credit Management

This search criteria takes you to the customer credit managementFD33 transaction for the to view the credit limit details of the customer.

List Documents This functionality allows you to view list of documents ( Inquiries,

Quotations, Orders, Contracts, Deliveries & Billing documents) created forthat customer.

NOTE: You would not have different customer numbers if your customer is serviced by more than one

company code or sales organisations. You may have different data for the same customer no. in different sales areas.



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When you change a master record after having used it to create documents (orders, deliveries,billing documents,), the changes do not affect the documents already created. However, theaddress in the customer master is an exception. Therefore, if it was necessary, you would haveto change the data in the documents manually, except for the address.



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Customer Master Mass Maintenance (T. Code: MASS or XD90)

For processing large amount of data, Mass maintenance transaction is used Mass maintenance is possible for a specific table(s) & field(s) within a table

Data also can be copied from a reference Customer master If you wish to change a large number of objects simultaneously, you should choosebackground mode.



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CUSTOMER MATERIAL INFORMATION RECORD: VD51

Customer uses a number or description for a material, which differs from the number or description ofyour company uses to identify it, you can store the material number or description used by thecustomer in the customer material information record.

Menu path: Easy Access- Logistics- SD- Master Data- Agreements- Customer mat info- Create/change / display.T. Code: VD51 CreateVD52 ChangeVD53 - Display

Customer material info record is information on a material that applies to a specific customer. This dataincludes:

The customer-specific material number The customer-specific material description Customer-specific data on deliveries and delivery tolerances. Plant Delivery Priority Minimum Delivery Quantity. Item Usage

The data in the customer material info record has priority when master data is copied into SAP. In thesales order the customer material must be entered in the customer material field.Make sure the relevant indicator is set on the sales doc type in order for the system to read the custmat info record.



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5. COMMON DISTRIBUTION CHANNELS & DIVISIONS:You can define common distribution channels & divisions. This is possible for 2 areas of SAP, for allmaster relevant data, and for all condition relevant data.

Menu Path: SPRO- IMG- SD- Master Data- Define common Distribution Channels & Define commonDivisions. (Transaction Code: VOR1 & VOR2 respectively)

After creating the organizational structures and relevant master records you want to use as masters,that is, in the distbn channels & divisions you are going to use as a reference, you can group distbnchannels & divisions separately for master data (which combines customer master & mat masterrecords), group cond records, or both master data & cond records.

Lets say you have a product range that is not different for the four different distbn channels you have(the channels could be telesales, retail, industry & wholesale). Neither is there a diff in the customersdetails when they purchase through one or the other. Thus, you will not want to create a multiple 4 viewof CMD & MMR. Merely create the CMD & MMR in one of the distbn channels, such as retail. Thenassign the other distbn channels you created in the organizational structure setup to this one.

Dont forget this means you can only create or change master data in the distbn channel that isbeing referred. In the scenario above, this means you can only change the data for the retaildistbn channel. If you select other distbn channels, you will receive a message sales area is notdefined

Sales Orgn Dist Chan Descp Dist Chan Cond Descp Dist Chan Cond Descp

Reference distribution channel for conditions

Specifies a distribution channel that you want to use as a reference for condition data for otherdistribution channels.

Procedure:

You can specify one distribution channel as the source of condition data for other distribution channels.You need then only to maintain the data in one place.

Example:

In this example, only distribution channels 01 and 04 have condition data defined. Distribution channels01, 02, and 03 share the master data that you defined for distribution channel 01. Distribution channel04 has its own master data. When you create a sales order in distribution channel 03, the systemchecks the condition data against the data defined for distribution channel 01.

Distbn Channel Ref Distbn Channel01 01

02 0103 0104 04



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Reference Distbn Channel for cust and material masters:

Specifies a distribution channel that you want to use as a reference for customer and material masterdata for other distribution channels.

Procedure

You can specify one distribution channel as the source of customer and material master data for otherdistribution channels. You need then only to maintain the data in one place .

In this example, only distribution channels 01 and 04 have customer and material master data defined.Distribution channels 01, 02, and 03 share the master data that you defined for distribution channel 01.Distribution channel 04 has its own master data. When you create a sales order in distribution channel03, the system checks the customer and material master data against the data defined for distributionchannel 01.

Sales Orgn Div Descp Div Cond Descp Div Customer Descp

Reference division for conditions

Specifies a division where you can define conditions and share them with other divisions.

In this example, only divisions 01 and 04 have conditions defined. Divisions 01, 02, and 03 share theconditions defined for division 01. Division 04 has its own conditions. If you create a sales order indivision 03, the system applies the conditions from division 01. You cannot create condition data fordivisions 02 and 03, since it would never be used .

Reference division for customers

Specifies a division where you can define customer master records and share them with other divisions

In this example, only divisions 01 and 04 have customer master data defined. Divisions 01, 02, and 03share the customer master data defined for division 01. Division 04 has its own customer master data.If you create a sales order in division 03, the system checks the customer master data from division 01.You cannot create customer master data for divisions 02 and 03, since it would never be used.



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You can use this kind of processing to enter multiple materials with various divisions in salesorder.

You can control the following in Customizing, according to the sales document type:Whether it is possible to enter multiple materials with various divisions for an order.The way the system responds (with or without a warning message).Whether the division on item level is copied from the material master record or whether the

division in the document header is also copied into the item.



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Customers are created in the following account groups and those are mandatory partner functionsrequired to process sales order.

SOLD TO PARTY: - Who places orders. Only needs sales relevant data. However a sold to partycan also be created as all the partner functions. SHIP TO PARTY: - Who ships or receives goods. Only needs shipping relevant data, such as

unloading points and so on. BILL TO PARTY: - Who receives Bills or Invoices. Only needs Basic data such as address and

out put fields. PAYER: - Is the individual or company who settles the Invoices for a service or for delivered

goods.

Number Assignment

Use: A unique number is assigned to each business partner master record. You can use this number toaccess the master record, or to refer to the business partner when processing business transactions.

Features: The number for a business partner master record can be assigned in one of the followingways:



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Externally: You assign the number. In this case, you define a number range that allows foralphanumerical number assignment. The system checks whether the number you enter areunique and within the number range defined by the account group.

Internally: The system assigns a consecutive number automatically from a number rangedefined by the account group .

The account group determines whether external or internal number assignment is allowed for abusiness partner master record. For account groups 0001 to 0005, for example, only internal numberassignment is allowed in the standard R/3 System.

Number Range: A number range can be valid for more than one account group. You can use thenumber range to assign different numbers to a head office and subsidiaries. In the standard R/3System, the account groups for the following customer partner functions are in the same number rangeso the numbers for these customer master records are assigned consecutively:

Sold-to party Ship-to party Bill-to party Payer

IntegrationA customer's number is unique for all sales areas and company codes. A vendor's number is unique forall purchasing organizations and company codes. You first create a master record for your businesspartner in one sales area. You then create a second master record for the same business partner inanother sales area. In this case, the system identifies the business partner number and does notdisplay the existing general data from the first master record for maintenance. You can use the changeand display functions to access the general data.PrerequisitesIn Customizing you define the number ranges that are to be available. You do this in the followingactivities:

Logistics Basic Data: Business Partners

o Define and Assign Customer Number Ranges

o Define Number Ranges for Vendor Master Records

Accounts Receivable and Accounts Payable

o Create Number Ranges for Customer Accounts

o Assign Number Ranges to Customer Account Groups

o Create Number Ranges for Vendor Accounts

o Assign Number Ranges to Vendor Account Groups



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6. MATERIAL MASTER DATA

Material Type and Industry sector Controls: Field Selection, Screen Sequence and Number Range.

Material Type: When creating a material master record, the user must assign the material to a material type. Materials with the same basic attributes are grouped together and assigned to a material type. Permits user to manage different materials in a uniform manner in accordance with your

companys requirements. The material type determines certain attributes of the material and has important control

functions.

Material Types Are:1. Raw materials2. Trading goods: HAWA3. Semi-finished goods4. Finished products: FERT5. Services: DIEN6. Non-stock material: NLAG

Menu path: Easy access- Logistics- SD- Master Data- Products- Material- Other Material- Create, Change &

Display. MM01 Posting of the Stock: MB1C



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To know the Stock Position: MMBE.

Industry Sectors: construction, chemical, mechanical, Media and pharmaceutical.Unit of Measure:-

1. Base unit (Piece) 2. Alternative unit (12 pieces = 1 box) 3. Sale unit (Unit relevant for sales process) 4. Delivery unit (Unit in which material can be delivered)

Minimum order quantity Minimum delivery quantity

Item category group: - (NORM) determines how the material processed in the sales order. Forexample pricing does not take place for free of charge item. The system determines Item categorybased on Item category group.

Customization of Material Master Data: T.Code: OMS9How to delete a Material (MM06): - Easy access Logistics SD Master data Products Material

other material change . Or from main menu bar select material then flag for deletion.How to block a material or in a particular season: - select MM02, go to sales org 1, under Generaldata, give blocking reason in the field D-Chain spec status.

Maintaining / extending view of Material: go to T.Code - MM50

If you go to MM02 Main menu bar, you will find the following information inEnvironment tab page:

1. Display changes (MM04): - you will find what are the changes have you done to the particularmaterial with date, time, T.Code.

2. Stock overview (MMBE): - stock position details.3. List of referring materials.

SD VIEWS ON MMR:Basic data 1, Basic Data2Sales orgn1, Sales orgn2

Sales General PlantSales TextForeign trade 1 & 2

Basic Data 1:Base unit of measureDivisionMaterial groupGross weightNet weightWeight unit: gm or kg

Basic Data 2: dangerous goods details

Sales Orgn 1: Delivery plantTax classification of materialMinimum order quantityMinimum delivery quantitySales unitX- Distbn. Chain Status: (The cross-distribution-chain material status

restricts the usability of the material for all the distribution chains.)D chain specific status: (restricts the usability of the material for thedistribution chain concerned.)Cash Discount



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Sales Orgn 2:

Item category groupGeneral item category groupMaterial Pricing GroupPricing Reference Material

Sales General Plant:Availability check

Transportation group: rail, road.Loading group: crane, forklift.Sales Text: text about material.Foreign Trade 1 & 2: if the company has got foreign trade.Accounting 1: contains the cost of the product.

Material MasterBasic data: Basic data is valid for the whole company. The OrganizationalLevels dialog box does not appear before you access this data screen

ImportantFields

Screen Application

Material description Basic Data 1 Text containing up to 40 characters that describes the material

in more detail. This defaults from Basic Data 1.Base Unit ofMeasure

Basic Data 1 Unit of measure in which stocks of the material are managed.This defaults from Basic Data 1.

Division Basic Data 1 This filed also appears in the Sales Views and is generallypopulated from there.

Material Group Basic Data 1 Key that you use to group together several materials orservices with the same attributes. This is a very important fieldfor reporting & analysis

X-plant materialstatus

Basic Data 1 It restricts the usability of the material for all plants, that is, itdefines whether a warning or error message is displayed ifyou include the material in a particular unction for

Procurement, Production etc.Size/Dimensions Basic Data 1 Its a Text field that you can use as you like. The filed length is

32 characters.Material isConfigurable

Basic Data 2 If this indicator is set, you can assign a variant class to thematerial, making it possible to use it as a configurablematerial. The indicator is defaulted for material type KMAT



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8. SALES DOCUMENTSPurpose:

The sales department of any organization carries out a wide range of activities, each involving a greatdeal of variation in and of itself.This range from processing requests for quotations, sales orders to pricing, credit and product

availability.The employees in a sales department are involved in many activities such as

- interacting with customers- answer to their queries,- provide them estimates,- give updates of availability of products,- offer appropriate products based on the buying pattern of the customer,- perform order entry in the system and- Maintain basic information about the customers, products and services that they

consume .

Challenges:The challenges in the Sales are:

Different pricing for different customers Delivery date confirmation with assured quantities Online status update and Document history Tracking of Materials and customer accounts Updating of Information system to plan and control of sales Monitor customer credit worthiness Monitor follow up activities from sales support



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The left and right sections of this slide represent key interfaces between Sales and Distributionand the Sales Information System (SAP data warehouse), Materials Management and ProductionPlanning.

Sales order:Sales order is a contractual agreement between a organization and a customer about deliveringproducts or providing a service for defined prices, quantities and times

Sales Orders normally contain information on Customer, Material, customer material information,pricing conditions for each item, Delivery dates and quantities for each item, Shipping processinginformation and Billing information.

STRUCTURE OF SALES DOCUMENT: All sales documents have basically the samestructure.



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FUNCTIONS OF SALES DOCUMENT: During sales order processing, the system carries outbasic functions, such as:

Determining the delivering plant, Shipping point & Route automatically

Availability check Systems ability to automatically determine a delivery (promise) datefor a sales order

Delivery Scheduling determines lead times for delivery processing.

Transfer of requirements - determines the item requirements to be passed tomaterials planning (MRP)

Pricing - indicates how a price should be determined for the sales order item.

Sales Information System - dictates how the sales information system is updated withsales order information to plan and control sales.

Checking Credit Limits Output Text



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Types of Sales Documents used in Business process

1. INQUIRY (IN): Non-Binding Agreement: For example, a customer inquires whether we have acertain product in our warehouse, how much it will cost, or whether the product will be available for acertain date. The inquiry will not be sent to the customer.

A customers request to a company that they provide a quotation or sales information withoutobligation . Doc Type: IN, Trans Code to Create inquiry: VA11. The standard item category for inquiry isAFN.

2. QUOTATION (QT): Binding Agreement from : A quotation presents the customer witha legally binding offer for delivering a product or service within certain fixed conditions, such as thevalidity period and the terms and conditions.

Doc Type: QT, Trans Code to Create Quotation: VA21. The standard item category used inquotation is AGN.

3 . Out Line Agreements: These are further divided into

(A) SCHEDULING AGREEMENTS: Outline agreements with determined schedule lines. Adelivery note is created directly from the scheduling agreement (release order is not required)

A customer scheduling agreement is an outline agreement with the customer containing deliveryquantities and dates. Trans Code: VA31 . Doc Types: DS- Scheduling Agreements, COB- SchAgreements BR, BL- Sch Agreement w/del schedule.

(B) Contracts (VA41):- Outline agreements with fixed quantity or value that a customer promises toorder over a specified period of time, as well as the price involved. It requires a release order to make adelivery. Pricing (procedure and/or discounts) is copied to release order from the contract

Delivery quantities and specific dates are not mentioned. Ex: 600 quantities in 3 months.

Types of contracts. 1. Quantity contracts. 2. Value contracts 3. Service contracts. 4.Master contracts. 5. Sub contracts.

4. Standard order (OR): Normal standard order contains, Sales order Delivery PGI Invoicingor Billing.

5. Rush Order (RO): It means immediate delivery, but account is not settled immediately. Salesorder PGI Invoicing or Billing.

6. Cash Sales (CS): Known as plant sales, means stock supplied immediately and account is

settled immediately. Delivery and Picking done at background by the system. Sales order PGI Invoice.

7. Consignment stock processing: - Keeping Companys stock at customers place.

Consignment Fill up (CF): Ex: Assume that company kept 100 boxes of Crocin tabs at NIMShospital. But it is property or owner ship is with company. This is called as consignment Fill up. NoBilling will be done here.

Consignment Issue (CI): Invoice is raised whatever the consumed quantities by NIMS. EX: 15boxes of crocin sold by NIMS hospital. So Bill will be raised for 15boxes only.



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Consignment Return (CONR): Stock return by the customer to NIMS hospital. Ex: 2 boxes ofCrocin returned by customer to NIMS.

Consignment Pick up (CP): what ever the remaining quantity and received returns bycustomers is send to company by NIMS. That is called consignment pick up. Ex: 87 boxes send back tocompany.

8. Third party order processing: Documents used OR / RO. EX: LG show room sells only TVs,but received order from a customer for TVs and stabilizers. LG show room informs to a Vendorto supply stabilizers directly to customer. Bill sends to LG and LG sends bill to customer.

9. Individual purchase order processing: EX: LG show room sells only TVs, but received orderfrom a customer for TVs and stabilizers. LG show room gets stabilizers from a Vendor. And LGshow room sends stock of TVs and Stabilizers to customer.

10. Inter company sales: with in the company sales organization will bill to the other sales org andsales org supplies to customer. Documents used OR or RO.

11. Returnable package (RP): EX: Coke / chemicals / Gas. Customer has to return the containerto the company. Coke Company supplies to distributor. He was charged only for drink not forbottle. Bottle has to returned by distributor to company.

12. Make to order: Once company receives order from customer then only it starts manufacturingthe product. Ex: Boeing Flights.

13. Sales Returns (RE): Goods returned by customer due to non moving or damaged.14. Credit memo request (G2): if customer requests to raise a credit memo for returned stock.15. Debit memo request (L2): If company charges any extra price to customer, then company

raise a debit memo request.16. Free of charge delivery (FD): Ex. Sending Free samples by company to Drs or customers

without charging price.17. Subsequent free of charge delivery (SDF): If customer requests for replacing any other

product towards stock returned by him.

TYPES OF SALES DOCUMENTS: VOV8

OR Standard order RO Rush orderCS Cash sales IN InquiryQT Quotation DS Scheduling agreementsB1 Rebate credit memo request B2 Rebate correction requestCD Free of charge delivery SDF Subsequent free of charge delCF Consignment fill up CI Consignment issueCONR Consignment return CP Consignment pick up

Sales Document Type - Controls



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DOCUMENT FLOW (Details)

SALES COMPLAINTSDocType Parameter Std Order CashSales

RushOrder Service

FreeGoods Returns Dely FoC

SubsDely FoC

CredMem

Ref Doc IN, QT,OR - - Ord / Bill - RE Ord / B

Doc Type OR BV RO OR RE FD SDF SalesDoc

Item Catg TAN BVN REN TAD TAN/TANN REN KLN KLNDely Type LF BV LF LR LF LF - DeliveryDely Item Cat TAN BVN REN REN KLN KLN - Billing Type F1, F2 BV F2 F1 RE - - BillingBilling Item REN - -

Cancel Cancel Doc S1 SV - -Important Features

Contract Bill PlansDocType Parameter Fill-up Pick-up Issue Return GenValue

Matl-Related Service Periodic Mi

Ref Doc IN, QT,OR - -

Doc Type OR CS RO WK1 WK2SalesDoc

Item Catg WKN WVN Dely Type LF BVDeliveryDely Item CatBilling Type BVBilling Billing Item

Cancel Cancel Doc



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DOCUMENT FLOW OR SALES ORDER CYCLE:Sales Order Cycle starts with:Inquiry- Quotation- Sales Order- Delivery- Invoice- Returns - Credit memo or SDF.

What is a Sales order?A sales order is a contractual agreement between a sales organization and a customer

(sold to party) for the supply of services or products over a specific period or time with certainquantities.

VA00 is transaction code used for Sales overview screen.

Normal sales order process has got the following procedure.Sales order Delivery or out bound delivery Picking Goods Issue (PGI) Billing or Invoice.

The following mandatory information is required to fill in the initial screens .1. To create a Sales order (VA01/02/03):-

Order type:Sales organization:Distribution channel:Division:

2. To create Delivery or Out bound delivery (VL01N/2N/ 3N): Shipping point :Selection date : (Automatically come from sales order. If it does not come give selectiondate as requested delivery date found in sales order screen)Order : (AUTO)

3. Picking or Transfer order (LT03):Wear house No :Plant :Delivery : (Auto)

4. Goods Issue (PGI) (VL02N):Out bound delivery: (Auto)

5. Invoice or Billing (VF01):Invoice No: (Auto).

Note: To check status: Go to VA02. Enter then click on Display Document Flow icon.

Sales - Transactions

Transaction Codes Application

VA11 / 12 / 13 Create / Change / Display InquiryVA21 / 22 / 23 Create / Change / Display Quotation

VA41 / 42 / 43 Create / Change / Display Contract

VA31 / 32 / 33 Create / Change / Display Scheduling Agreement

VA01 / 02 / 03 Create / Change / Display Sales Order



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Quotation

A quotation can be created with or without reference to an inquiry

Quotations are offers from a sales area to a customer for delivering materials or providing servicesunder specified conditions.

Quotations are legally binding throughout the given validity period.



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Sales Order Header

ImportantFields

Screen Application

Sold to Party Main Screen Each sales order is assigned to unique sales area (sales organization,distribution channel, or division). If there is master data for the sold-toparty in several sales areas, a selection screen appears where you canchoose the sales area you require.

If there are several possible sold-to parties for the ship-to party, thesystem displays a selection screen with the possible alternatives.

Order type Sales View A classification that distinguishes between different types of salesdocument.

BlockingDocument

Sales View In sales orders, you can block the transactions for shipping or for billing.

Billing block can be set in the document header, and also in the individualitem.

Reason forRejection

Sales View You can reject items in sales documents. This gives the items the statusof completed. The business transaction thus be concluded without

deleting the item.Also a reason for rejection allows you to find out what your customerthinks of your products during a certain time period.

AccountAssignmentcategory

Billing Using the account assignment criteria as a variable G/L account can bedetermined



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Sales Order Environment



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Sales Order Enhanced Functions



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Sources for Document Data

During data input for sales documents, the system supports you by analyzing various sources ofinformation. The aim is to make creating documents easier by using default values or fixedreference data. Possible sources of information are:

Master data: The system reads the master data defined for a customer, a material, or a pricingcondition. For example, the specific terms of payment for a customer can be found. The salesinformation from a material master can serve as the source of the delivering plant.

Existing document data: Document data that has already been entered or determinedautomatically by the system can be used to enter additional documents data. For example, thedelivering plant is used - along with other information - to determine the shipping point.

Customizing: Default values for creating documents can be defined in Customizing. Forexample, you can set a default value for the delivery date or configure a delivery or billing block inthe sales document type. You can also define strategies in Customizing for determining document

information based on combinations of several criteria (for example: determining the shipping pointthrough a combination of delivering plant, loading group, and shipping condition).Hard-coded controls: Hard-coded controls can be used to weight the different sources of

information (example: proposing plants automatically).



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Sales processes are controlled by Customizing for sales documents.Customizing for sales documents can be done at header, item or schedule line level, depending

on the structure of the document. The instruments for control are the sales document type, item

category and schedule line category.You need to make settings in Customizing so that the item and schedule line categories are

determined automatically in the sales document.To complete the setup of a business process in your system, you need to configure the system

for forwarding data from the sales document to subsequent documents according to your needs.You can do this in copying control.



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The diagram contains examples with settings as they are provided in the standard R/3 System.

Every item in a sales document is controlled through its item category. This enables you to Use different item categories in different sales document types, Realize different business processes for each item in the sales document.

You can configure the functions of the item categories according to your requirements. Forexample:

You want schedule lines for a free-of-charge item in the sales order (item category TANN)but

You do not want to carry out pricing for this item or transfer it to billing. You do not need pricing or delivery quantities and dates (that is, schedule lines) for a text

item(Item category TATX) in the standard order. However, if you need the item in the delivery orbilling documents, you can indicate it as relevant for delivery or billing .



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Sales Document (VOV8) DETAILS:

Item No. Increment: how line items no should increase in documents. Check Division: Controls how the system reacts during sales order processing when a

division that is entered or proposed at the item level differs from the division in thedocument header

Item Division: Indicates whether the division at the item level is proposed from thematerial master record of the item or whether the division you enter in the sales documentheader also counts for all items. If you mark this field, the system proposes the division fromthe material master record of the item. If you leave the field blank, the division in thedocument header also counts for all items.

Probability: IN: 30%, QT: 70% and Order: 100% Check Credit Limit: how system should respond to check during order processing Read Info Record DoPP: the key that specifies the pricing proc for this type of sales doc. Display Criteria: should system display only main or sub items or all items in sales doc F.Code Overview Screen: after you enter the data in the initial sales doc screen, which

overview screens the customer wants. Quotation Messages: Incompletion Message: check this field & u cant save an incomplete doc. Delivery Type: LF for OR and RO. BV for CS Delivery Block Shipping Conditions: specify a value here and the value in CMD is not taken. Delivery Related Billing Type & Order Related Billing Type Billing Block Proposes Del Date: Indicates whether the system automatically proposes the current date

as the delivery date. Business Transaction: This entry makes it possible to use the availability check settings in

the APO planning system for this order type. Use: Using the business transaction, you cancontrol in which business contexts a rule-based availability check is carried out. A rule-based availability check is therefore, as a rule, not sensible for a rush order.

When called from the ERP system, this value is created using the order type for the salesorder from which calling takes place. Lead Time In Days: specify the number of days after the current date that the proposal for

the requested delivery date in the sales doc should be. Immediate Delivery.

1) COMPARISON BETWEEN DIFFERENT SALES DOCUMENTS

ImpFields

StdOrd

RushOrd

CashSls

Returns

CrReq

DrReq

ConsFill

ConsIssue

ConsPick-

up

ConsRetur

ns

DelyFoC

SubsDelyFoC

Doc

TypeOR RO CS RE CR DR CF CI CP CR FD SDF

MandRef - - - Yes - - - - - -

- Yes

ItemDivnShipCond 01

ImmdDely - Yes Yes

DelyType LF LF BV LR



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Bill Type F2 BV RE G2 L2 - F2 - F2

9. SPECIAL BUSINESS TRANSACTIONS (Cash order & Rush order sales)

1) RUSH ORDERS

Rush order is used when the customer wants to picks up the goods immediately or when the goodshave to be delivered the same day.

The delivery document is created automatically as soon as the order is placed.

Rush Order (RO)

Delivery(LF)

Billing

Transfer order

Created

Automatically

Invoice



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Billing is processed in the standard way-based on the delivery. Availability check is carried out, and only available quantity is delivered.

2) CASH SALES

a) Immediate Delivery, Billing Date = Today b) Invoice printed directly from Cash Sales Order with same number as Cash Sales Order.c) Order-related Billing.d) Picking & Availability Check normally not necessary.e) Collective PGI.f) Billing can be done only after PGI.g) For Invoice: No Output, no new Price Determination,

Order type BV, Billing type BV, Delivery type BV, Special Account key -- EVV is used forcash sales.

Billing type SV is used for cancellation of cash sales. For cash sales payment is made when the goods are ordered. The Invoice is also printed at the same time The order, Delivery and picking are created in one step, although you receive documents for

each. It is an order related billing (F1) since delivery is created automatically. The Goods Issue is posted at a later time as separate transaction, so the customer does not

have to wait. It has own output type RD03 which allows you to print an invoice from the order. Pricing type D is used in Copy control. In Cash sales customers belongs mostly one time customer. They are created in the account

group of CPDA. Cash sales triggers Petty cash account or Cash settlement account , not to the customer

account.

Cash Sales (BV)

Delivery(BV)

Billing(BV)

Transfer Order

CreatedAutomatically

in the ack

Invoice(RD03)



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10. ITEM CATEGORYThe item category controls what the item does in the sales doc & in any later processing for thatbusiness transaction. It controls the sales doc & affects the schedule line category.

A classification that distinguishes between different types of items (for e.g., free of charge items & textitems) & determines how the system processes the item. E.g., if you identify an item as a free ofcharge item, you tell the system, in this case to ignore the normal pricing procedure.

The system uses an item category to process a material differently in each sales doc type: in inquiry,the standard item is priced but not relevant for delivery. For the free of charge item, no pricing & nodelivery. But in sales order both the items are relevant for delivery and pricing is carried out for thestandard item.

Standard Item: (AFN: Inquiry), (AGN: Quotation), (TAN: Sales Order)

Free of Charge Item: (AFNN: Inquiry), (AGNN: Quotation), (TANN: Sales Order)

Non-Stock Item: (AFX: Inquiry), (AGX: Quotation), (TAX: Sales Order)

Text Item: (AFTX: Inquiry), (AGTX: Quotation), (TATX: Sales Order)

Item Category Controls: document, billing, pricing, delivery/shipping & incompletion log.

Whether the item refers to a material master record (or is a text or value item)Whether schedule lines are allowedWhether pricing is relevantWhether billing is relevantWhich data is required for the item (will appear in the incompletion log)?Whether the business data in the item can be different to that of the doc header.

Defining Item Category: VOV7: SPRO- IMG- SD- Sales- Sales Document- Sales Document Item-Define Item Category.



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The Item Category for the sub item on a sales document is determined by Sales document type,Item category group and Item category of higher level item

FUNCTIONALITY OF ITEM CATEGORY

Item Type: whether standard or text or value item Completion Rule: The rule for establishing when a quotation or contract is complete. Business Data Item: whether business data in the item can be different to that of the doc header. Relevant for billing Schedule Line Allowed: Items that are relevant for del will always have schedule lines. Order Quantity = 1 Item Relevant for Delivery: we need to check this field in item cat: TATX. Create Delivery Group: You use a delivery group to determine a common delivery date for all

the items that it contains. Especially used in BOM. Determine Cost: Indicates whether, during pricing, the system determines the cost (stock

value) of a sales document item. Relevant for weight and volume Credit active. Pricing : In the case of text items, however, pricing would not make sense.

Types of Item CategoryBVN Cash Sale TAS Third partyTAB Individual order purchase REN ReturnsG2N Credit memo L2N Debit memoTAK Make to order TAC Configurable materialKBN Consignment fill up KEN Consignment issueKRN Consignment return KAN Consignment PickupTAQ Extent delivery- BOM TAP Extent delivery- higher lever item in BOMTAE Explanation- BOM TAW Value ItemBANS Third party Item cat group BANC Individual purchase Item category group



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Text items do not require processing for pricing, taxes & weight calculations Items that are not relevant for del, such as credit memo requests, do not have schedule lines. Usually, items that do not have schedule lines cannot be copied in to a delivery. Text items are

an exception.

To configure Item Categories: IMG ->Sales and Distribution -> Sales -> Sales Documents ->Sales document Item -> Define Item Categories

Functions ExampleStandard item in QT Pricing, Schedule Line Allowed, Not relevant for billing, AGNStandard item in Order Pricing, Schedule Line Allowed, Relevant for billing TANFree of Charge Item in order No pricing, Schedule line allowed, not relevant for billing TANN

Text item in Order No pricing, No schedule lines, relevant for billing TATX

You do not need pricing or del quantities & dates (i.e. schedule lines) for a text item (itemcat: TATX), in the standard order.

COMPARISON BETWEEN DIFFERENT ITEM CATEGORIES

Item Cat AGN TAN TANN TAP TAQ TAE TAD TATX TAK KLN TAO WVNBoM

H BoMHBoM

S Mile Perio

Business It -

Pricing Y Std 100%Disc N Y N Y - N

Sch Lines Y Y Y Y Y Y Y -Item RelDely - - - - - - - Y

Bill Relev - Dely Dely Dely Ord - N IStruc Scop - - - 1 Lvl 1 Lvl - -



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Deter. Cost Y Y Y Y -

ITEM CATEGORY DETERMINATION

Depending on the item category group that you apply & the sales doc type you are processing thesystem automatically proposes an item category in the document.

Document type Item cat group Usage Higher level item category Default Item categoryOR NORM TAN TANNOR NORM TANOR NORM FREE TAN TANN

SPRO- IMG- SD- Sales- Sales Document- Sales Document Item- Assign Item Category (VOV4)

11. SCHEDULE LINE CATEGORYDEFINE SCHEDULE LINE CATEGORY: VOV6

Subdivision, according to date & qty, of an item in a sales doc.

The schedule line category is used by the system to determine if the item is relevant for delivery. Onlythose items that have schedule lines assigned will have a delivery created for them.

SPRO- IMG- SD- Sales- Sales Documents- Schedule Lines- Define Schedule Line Categories.



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Schedule Line Category Controls

AT: Inquiry schedule line BN, CN, D0: No MRP & No Availability Check CP / BP/E1/C1/F1: MRP & Availability Check BV & CV: same as BN & CN, but MRP passed on for info purpose Goods receipt is posted for the schedule line DN in a return doc --------------------------------------------------------------------------------------- CN, CP, CT, CV: relevant for delivery, other Sch line cat are not



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CP, CV, CN: sales order schedule lines CP: deterministic MRP CV: consumption MRP CN: no leg CS: third party item BN: quotation DN: returns BP: deterministic MRP BV: consumption MRP CT: no inventory mgmt/ no goods issue ------------------------------------------------------------------------------------------------------- Movement types: SD related movement types from 561.

601 Goods issue delivery 602 Returns561 Posting the stock in the plant 301 Plant to plant stock transfer302 Return of the stock transfer451 Returns from customers 452 Returns from customer reversal661 GI Returns to vendor 901 Return of stock to a supplier631 Consignment fill up 634 Consignment Return

633 Consignment Issue 632 Consignment Pick up

ASSIGN SCHEDULE LINE CATEGORY DETERMINATION: VOV5

The schedule line cat depends on the item category of the item & MRP of the material. The MRP typeis found in the MMR, MRP 1 screen.

SPRO- IMG- SD- Sales- Sales Documents- Schedule Lines- Assign Sch Line Categories

Item Category MRP type Schedule line cat Manual Sch Line CatOR TAN PD CP (item rel for del)IN AFN ND ATQT AGN ND BN



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12. SALES ORDERSSales Order is a contractual agreement between a sales orgn & sold to party abut delivering productsor providing a service for defined prices, quantities & times.

Standard Functions during Order Processing:

Pricing Availability check (if this function is defined in MMR) Transferring requirements to material planning (MRP) Delivering scheduling Shipping point & route determination Checking credit limits.

Changes at Item Level:

Select Line Item & Go To & Select

Shipping: to change plant & shipping point Schedule Lines: to change delivery dates Partners: to change ship to party.

Making Fast Changes:

Using this function, you can change the following data for several or all items:

Reason for rejection Delivery block Billing Block Delivery date Delivery priority Plant. Choose EditFast Change of & the relevant process.

Transaction Code Standard Order Rush Order Cash Sales

VA01, 2,3 Order Order OrderVL01N, 2N, 3N Delivery --- ---LT03 Picking Picking ---VL02N Goods Issue Goods Issue Goods IssueVF01, 02, 03 Invoice Invoice Invoice.

Type VA02 & click on Display Document Flow.



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Blocking Sales Orders

You can block sales orders for the following subsequent functions:

For shipping:

The system does not let you create a delivery for a sales order that is blocked for shipping. Youreceive an error message telling you that the order is blocked for delivery.

For billing:

The system does not allow you to create a billing document for a delivery that is blocked forbilling in the underlying sales order. When you try to create individual billing documents, thesystem enters a message in the relevant log. In the case of collective processing of billingdocuments, the delivery is not included in the billing due list.

In addition, it is possible to block sales document types for certain customers, so that youi can preventcertain types of sales documents being created for a particular customer.

Setting a Delivery BlockYou can set a delivery block at header level as well as in the individual items and schedule lines:

To display this information at header level, choose the Shipping tab page from the overviewscreen. You can set the delivery block in the Delivery block field.

You can set the delivery block at item level on the overview screen in the Shipping tab page, byselecting the item and entering the block in the Delivery block field in the table.

To enter a delivery block in a schedule line, select the appropriate item on the Item Overview tab page and then choose Goto Item Schedule lines . You can set a delivery block for theschedule line in the Delivery block field in the table.

A delivery block at header level is only effective if it has been assigned to thecorresponding delivery type in Customizing (table TVLSP). Regardless of thisassignment, the delivery block is still effective at schedule line level.

Setting a Billing BlockYou can set a billing block at header level and for the individual items:

To set the billing block at header level, choose the Sales tab page from the overview screen andactivate it in the Billing block field.

To enter a delivery block for an item, select the appropriate item on the Item Overview tab pageand then choose Goto Item Billing . You can then activate it in the Billing block field.

You can also use the fast change function to set delivery and billing blocks at headerand item level. For more information, see Making Fast Changes.

Blocking Sales Document TypesIt is also possible to customize your system so that specific types of sales documents are blocked forspecific customers. For more information, see blocking a Customer Master Record.



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BASIC FUNCTIONS13. PARTNER DETERMINATION: VOPA

The business partners that exist in the marketplace are represented with a partner type in theR/3 System.

Partner types AP, KU, LI and PE are defined in partner processing for the Sales and Distributionapplication module. These are defined as follows:

AP Contact personKU CustomerLI VendorPE Personnel

In other applications (such as Service Management) different partner types have been defined (forexample, O for organizational unit, S for position, A for work center).

A