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Added by Prashanth Goud, last edited by Jyoti Prakash on Nov 09, 2012
ERP Operations / / Essential Configuration in SD
Basic Rules in SD Configuration
Purpose
This wiki page will discuss the basic rule / principle / inf ormation pertaining to SAPSales and Distribution.
Organizational structure
Sales Organization
Its responsible f or:
Distribution of goods and services
Negotiating Sales Conditions
Product Liability and rights of recourse
A sales organization is uniquely assigned to a company code
Master data's are separately maintained f or a sales organization
All items in the Sales and Distribution document belong to a sales organization
Distribution Channel:
This is the means through which products and services reach the customer. So, its responsible f or:
Def ines responsibilities
Helps in achieve f lexible pricing
Dif f erentiate Sales statistics
Division:
A division is used to group products and services.
A division represents a product line.
Sales Area:
A Sales area is a combination of
Sales organization
Distribution Channel
Division
Each Sales and distribution document is assigned exactly to one sales area.
A sales area can belong to only one company code.
Plant and Storage Location:
A Plant is a location where stock is maintained
Plant and storage location are used by all logistic area of R/3 System
A Plant is uniquely assigned to a company code
Shipping point:
Shipping point is the highest level of organizational unit in shipping
Each outbound delivery is processed by one shipping point
Shipping points are assigned to a plant
More than one shipping point can be assigned to a plant
Process
Sales and Distribution is SAPbegins with establishing customer relationship and ends with invoicing f or the delivery of goods or service provided to the customer.
A standard process f low f or sales transaction has the f ollowing f low:
1. Inquiry
2. Quotation
3. Sales Order
4. Delivery Document
5. Invoice
The customer order management cycle begins with pre-sales activities.
Sales Order
A standard sales order in SAPcontains:
Customer & its partners details
Material inf ormation
Pricing conditions
Delivery dates and quantities
Shipping/Transportation inf ormation
Billing inf ormation
Accounting Interf ace inf ormation
Required Output Details
Document Status
Inventory sourcing at Sales Order & Delivery
It is handled through:
Availability check
Shipping
SAPsupports f ollowing shipping process:
Outbound delivery creation
Picking
Packing
Post Goods Issue
Billing
SAPsupports f ollowing billing process:
Creating invoices f or products and services
Creating credit and debit memo
Cancel previously posted billing documents
Automatically transf erring billing documents to accounting
When a billing document is created f or a sales order we
Credit the sales revenue account
Debit the customer receivables account
Sales Documents - Structure & related information
Sales Order
A sales order is grouped into three structures
1. Header
2. Item
3. Schedule Line
Outbound delivery
A delivery document is grouped into two structures
1. Header
2. Item
In standard system, several orders can be grouped into single outbound delivery, provided the ref erenced orders have same
1. Shipping point
2. Delivery date
3. Ship-to address
Picking List or Transfer Order
created f or an outbound delivery
created f or a warehouse number
Post Goods Issue
When PGI is done the system
Updates the quantity in inventory management and delivery requirements in materials planning
Generates additional documents f or accounting
Adds the delivery to the billing due list
Updates status in sales documents
Billing
A billing document is grouped into two structures
1. Header
2. Item
In standard system, several orders/deliveries can be grouped into single billing document, provided the orders/deliveries have same
1. Billing date
2. Payer
3. Billing address
The ef f ects of billing are
Debit on the customer receivables account
Credit on sales revenue account
System updates
- Sales inf ormation system
- Sales statistics
Master data in SAP
In sales and distribution, the f ollowing main master dates:
1. Customer master
2. Material master
3. Condition master
4. Output master
5. Customer material inf ormation master
Customer master
The master data f or customer is maintain in 3 major area
1. General Data
2. Company Code data
3. Sales Area Data
Following is the table which shows detail on three main areas of customer master and the tab pages & details f ound under each area:
General Data Sales Area Data Company Code data
Address Sales Details Account inf o
like Reconciliation account
Control data
like Transport.zone, tax info
Shipping details Payment
like Terms of payment, auto payment details
Payment transaction
like bank details, payment cards
Billing details
like payment term, account details
Billing Correspondence
like Dunning Procedure, payment notice
Marketing Partner f unctions Insurance
Export data
Contact Person details
Material Master
It is maintained in dif f erent views. Following are the important views maintained f or material master in sales and distribution:
Views Key Fields
1. Basic data 1 Base Unit of Measure
Material Group
Gross Weight & its unit
Net Weight
Volume & its unit
Size/dimensions
Languages Maintained
2. Sales Org 1 Sales unit
Division
Tax Data
Min.order qty
Min. dely qty
Rounding Prof ile
3. Sales Org 2 Matl statistics grp
Material pricing grp
Acct assignment grp
Item category group
Product hierarchy
Material groups
Product attributes
4. Sales : Gen/Plant Availability check
Batch
Transportation Group
Loading Group
Matl Grp Pack.Matls
Prof it Center
Negative Stock
Serial Number
5. Foreign Trade Export Comm./imp. code no.
Export/import group
Control code
Legal Control
6. Sales text
7. Accounting 1 Valuation Class
Material Price Determination
Price Control & Moving price or Standard price
Sales Document Type
Sales document type like OR in Sales and distribution mainly controls:
Number range
Item No increment
Ref erence mandatory
Item division
Read inf o record
Document pricing procedure
Incomplete messages
Alternative sales documents
Delivery block
Billing block
Immediate delivery
Subsequent Delivery type
Subsequent Billing type
Proposed delivery date
Lead time f or delivery
Proposed pricing date
Plant Determination in sales order
To determine the plant in a sales order the system checks the master in the f ollowing sequence:
Sequence Master Data
01 Customer material inf o. record of the sold-to Party
02 Customer master record of the Ship-to Party
03 Material master record of the material
Shipping Point
The f ollowing is combination with which shipping point gets determined automatically in a sales order:
Shipping point = Plant + Shipping Condition
(Sold-to-Party)
+ Loading Group
(Material master Gen: Plant data)
Route
Route automatically gets determined in sales order based on f ollowing combination:
Route = Departure Zone
(from Shipping Point)
+ Shipping Condition
(from Sold-to-Party)
+ Transportation Group
(from Material master)
+ Transportation Zone
(from Ship-to-Party)
Delivery Scheduling
As name denotes delivery scheduling is scheduling delivery f or an order, which carries out through the f ollowing important dates:
1. Material availability date
2. Transportation planning date
3. Loading date
4. Goods Issue date
5. Delivery date
Availability Check
Following are f eatures of availability check:
It is carried out at item level f or a plant
It is done on the material availability date
If material availability date is in the past the f orward scheduling is done, if not backward scheduling is done.
Item Category
Item category controls behavior of material in sales order. In a sales document, it mainly controls the f ollowing:
Relevance f or billing of an item
Billing block
Pricing relevance
Business data relevance item
Schedule line allowed
Item relevant f or delivery
Returns
Determine cost
Credit active
Incompletion procedure
Partner determination procedure
Structure scope (relevant f or bill of material explosion)
Value contract material
Contract release control
The f ollowing is combination by which Item Category automatically gets determined in sales order.
Item Category = Sales Document Type + Item Category Group
{Material master)
+ Item Usage
(if any)
+ Item Category of Higher Level Item
(if any)
Schedule Line Category
Every item which has a delivery will have a schedule line and the schedule line category is determined with the f ollowing rule:
Schedule Line Category = Item category + MRP Type
(Material Master)
It mainly controls:
Delivery Block
Movement type
Item relevant f or delivery
Req/Assembly
Availability
Product Allocation
Copy Control
It is normally set f or
Header
Item
Schedule line levels
To control copying procedure we have
Data transf er routines
Copying requirements
Switches
Types of copying control:
S. No Transaction Code Source Document Target Document
1. VTAA Sales Order Sales Order
2. VTLA Sales Order Delivery Document
3. VTFA Sales Order Billing Document
4. VTLF Delivery Document Billing Document
5. VTAF Billing Document Sales Order
6. VTFF Billing Document Billing Document
Pricing Procedure
Pricing is an important component in SAPSales and Distribution. Once an order is entered taking into consideration some major f actors, the pricing procedure f or the particular order is determined.
The major f actors or combination is taken into consideration f or pricing procedure determination in sales order:
Pricing Procedure Determi nati on = Sales Area
(Sales Organization + Distribution Channel + Division)
+ Customer Pricing Procedure
(Customer Master-Sales area data)
+ Document Pricing Procedure
(Sales Document Type)
Shipping
The basis f or shipping is delivery.
Delivery document controls the f ollowing in deliveries
Number range
Item no increment
Storage location rule
Route determination
Text determination
Delivery split
Gen. packing material / item
Order required
Item category f or delivery controls:
Check minimum delivery
Availability check
Relevant f or picking
Storage location required
Determine storage location
Automatic batch determination
Text determination procedure
Packing control
Stk determ.rule
Billing
Billing is sales process is of the critical integration point between SD and FI Module.
It has got the f ollowing structure:
1. Header
2. Item
It mainly controls:
No. range
Posting block (to controls posting of invoice to accounting)
Relevance f or rebate
Account determination procedure
Account determination recon account
Account determination pay.cards
Output determination procedure
Cancellation billing type
Account Determination
Automatic account determination in SAPSales and Distribution sales order & billing documents take place based on f ollowing combination
Account Determination = Sales Organization + Chart of
Accounts
+ Account Assignment
Group for Customer
+ Account Assignment
Group for Material
+ Account Key + G/L Account
on which the postings
will take place
sap_sd basics configuration config determination rules information info sales_and_distribution
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