sap sd training document

8/10/2019 SAP SD Training Document

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SAP R/3

SALES AND DISTRIBUTION

Training Material for beginners


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IndexPage no.

Enterprise structure 3

Master Data 4

Material Master Data 4

Customer Master Data 5

Sales Order 6

Pricing Procedure 7

Condition Tables 7

Condition Types 8

Access Sequences 10

Pricing 10Pricing Procedure Determination 12

Customer Pricing Procedure 12Document Pricing Procedure 12

Pricing Limits 13

Pricing by Item Category 13Condition Exclusion Groups 14

Bills of Material 16

Incompletion Logs 17

Delivery and Invoicing 17

Delivery 17

Post Goods Issue 19Invoicing 19

Account Determination 20

Output Determination 21

Tax Determination 22

Tables 24


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Document Master Data

All the business transactions are stored in the form of documents which map to

tables, in order to maintain the data systematically.

Customer and Material Master Data

All the materials and costumer details are maintained in the material master dataand customer master data respectively.

Creation of new material

[MM01] is the transaction code for create material. The material name, type and industry sector are entered in respective fields. The plant, sales organization and distribution channel to which the material

belongs are provided.

The description, basic unit of measure (BOM) and other details are provided forthe material.

The material is then created.


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The key fields in the creation of a material are:

The type of material The plant, sales organization and distribution channel to which it belongs to

The units of measure of the material

The shipping and loading details

The above process is repeated for all the materials. If we would like to change the

properties of an existing material, the transaction code is [MM02] and to view the

properties of a material, the transaction code is [MM03].

Now, we create new customers in the customer master

Creation of new customer

[XD01] is the transaction code for customer creation.

An account group is chosen and the company code, sales organization,

distribution channel and division to which the customer belongs are provided. If


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the customer is to have the data of any other old customer, the data is provided in

the reference part. The details of the customer are provided and then the costumer is created.

The key fields in the creation of customer are:

Account group, sales organization, distribution channel and division to which thecustomer should belong to

The details of the customer Shipping details

The transaction code for changing/updating an existing customer record is [XD02] and

[XD03] allows the user to view the details of existing customer.

Following the above steps, materials ZZ02, ZZ03 and customers AA0000, AA0001 are

created.

Sales Order

Whenever the customer gives an inquiry about products/materials, the salesorganization provides a quotation for which the customer places an order. We now

prepare a sales order for the requested materials.

Creation of Sales Order

[VA01] is the transaction code for creation of sales order.

The creation screen prompts for sales order type, sales organization, distributionchannel and division.

The sales order type distinguishes between the sales order documents. This can be

created by using the transaction code [VOV8]. Once the sales order type and the organizational data are provided, we need to

provide the details like sold-to-party, ship-to-party, material details etc., The sales order is created with all the required data.


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The key fields in the creation of sales order are :

Sales order type

ship-to-party and sold-to-party details material name, quantity and sales unit of the material

Pricing Procedure

Once the sales order is created, we would be interested in the pricing thecustomer. The largest configuration technique used in sales and distribution is the

condition technique. The pricing procedure will have a condition type and an access

sequencebased on which the pricing for the customer is decided. Each condition type

has a different access sequence, which is based on multiple tables and the fields requiredin them.

The pricing procedure includes creation of condition tables, condition types and access

sequences. Based on these, we generate the pricing for the customer.

Condition Tables

MENU PATH

IMG, Sales and Distribution, Basic Functions, Pricing, Pricing Control,Define Condition Tables

TRANSACTION CODE : [V/05]

The condition table is given a name The fields for the table are selected from the list of the available fields

given on the right hand side of the screen

The dependency of the table on the validity period and release status is

defined


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Once the table is created, the technical view gives the details of the tables in

which the fields are present. Then the table can be created either for a package or as alocal object.

Condition Types

MENU PATHIMG, Sales and Distribution, Basic Functions, Pricing, Pricing Control,

Define Condition Types


The condition type and name are given The condition class, calculation type, rounding rule etc., are given

The valid from and to dates are given so as to specify the period in which the

condition is valid The access sequence which is to be used for the condition type is specified.

The scale basis defines if the scale is value based or quantity based or formula

based


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Access Sequence

MENU PATH

IMG, Sales and Distribution, Basic Functions, Pricing, Pricing Control,

Define Access Sequence


As mentioned earlier, the access sequence should be maintained from most specific to

most general. For ease of use, the access sequence is named similar to the condition type The condition tables that are considered are entered in the access sequence

fields

The exclusive indicator should be set. It determines that if a condition record

is successfully found, the system will stop searching for further conditionrecords

This access sequencemust be assigned to a condition type. Now that the condition typeis

created and that access sequence is created and assigned, we can now assign thecondition typetopricing procedure.

Pricing

Pricing is the combination of creating correct pricing procedures that map the

business needs and processes and keeping to the legal requirements placed on the

business.

MENU PATH

IMG, Sales and Distribution, Basic Functions, Pricing, Pricing Control,Define and Assign Pricing Procedures, Maintain Pricing Procedures



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The above diagram shows the determination of a pricing procedure on the basis of

customer pricing procedure, document pricing procedure and sales area.

Pricing Limit

MENU PATHIMG, Sales and distribution, Basic functions, Pricing, Pricing control,

Define condition types, Define upper and lower limits for conditions

TRANSACTION CODE : [OVB2]

When we have a condition type which can be altered manually in the sales

document, in order to ensure that there is no room left for misuse, we apply lower andupper limits for the condition type. The condition types calculation type controls the

calculation type of the limit. If the calculation type for the condition is percentage, thelimit will also be based in percentage terms.

Pricing by Item Category


Define Pricing by Item Category, Activate pricing for item caterories

TRANSACTION CODE : [OVK0]

Here, we can define for each item category, if the item is relevant for pricing. Thetwo columns pricing and statistical value determine the pricing of the item category.

If the item is not relevant for pricing, the pricing field is left blank


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If standard pricing is to be carried out for the item, then the pricing field is

indicated with an X The statistical column indicates if the item must be used for statistical purposes,

that is, in the updating the logistics information system

Condition Exclusion Groups

Step 1 : Creating a condition exclusion group

MENU PATH

IMG, Sales and distribution, Basic functions, Pricing, Pricing control,

Condition exclusion, Condition exclusion for groups of conditions, Definecondition exclusion groups

TRANSACTION CODE : [OV31]

Assign an alphanumeric key and a description to the condition exclusion group created.

There are four possible methods for using condition exclusion groups

Selection of most (or least) favorable Condition type within a conditionexclusion group

Selection of most (or least) favorable condition record of a condition type if

more condition records exist Selection of most (or least) favorable of the two condition exclusion groups

An exclusion procedure in which if a condition type in first group exists in the

document, all condition types in the second group are set to inactive.

Step 2 : Assign condition types to the exclusion group


Condition exclusion, Condition exclusion for groups of conditions, Assign

Condition types to exclusion groupsTRANSACTION CODE : [OV32]


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Assign condition types to the condition exclusion group.

Step 3 : Assign Condition Exclusion Group to Pricing Procedure

MENU PATH

IMG, Sales and distribution, Basic functions, Pricing, Pricing control,Condition exclusion, Condition exclusion for groups of conditions, Maintain

condition exclusion for pricing procedures

TRANSACTION CODE : [VOK8]

Select the pricing procedure for which the condition exclusion is to be active Select the Exclusion button and assign the condition exclusion group to the

pricing procedure

Note that the condition type in the exclusion group must exist in the pricing procedure

and have valid condition records created for them.

Points to be noted while using condition exclusion groups :

When using the best condition record within a condition type, only one condition

type is to be used in the exclusion group. Also the exclusive indicator on theaccess sequence assigned to that condition type is to be deactivated or else, the

system will merely find the first condition record and stop searching for other

records. If the exclusive indicators are not set, but condition record exists for the condition

tables in the access sequence, and no condition exclusion group exists for the

condition type, the system will bring all valid condition records into the salesdocument.


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Bills of Materials (BOM)

A Bills of Materials (BOM) is a collection of materials that make up a product.

The Bills of Materials (BOM) process can be complex and dependent on Sales and

distribution as well as other modules such as Materials Management or Production

Planning.

A computer can be considered as an example of BOM. The header item or mainitem, the computer, could be constituted of many subcomponents or subitems: a hard

drive, a keyboard, and a monitor. It is these subitems of the BOM along with the header

item that make up the BOM. When the customer places his order, he orders the header of

the BOM only and the subitems are automatically included in the sales order.

Due to the BOM having header and item levels, the system does not process

pricing, inventory control, and delivery processing at both levels. There are two types ofprocessing

Main Item Level Processing Sub-Item Level Processing

Main Item Level Processing

The material master records should have the item category group ERLA in the

Sales 2 screen of the finished product. In this case, the associated sub items function only

as text items, and thus are not relevant for delivery. This process ensures that pricing,inventory control, and delivery processing is carried out at the header level that is for the

finished product only.

Sub-Item Level Processing

If the sub items are to be responsible for pricing, inventory control, and deliveryprocessing, the item category should be entered as LUMF on the material master record

in the Sales 2 screen. This ensures the subcomponents are relevant for processing.

The Delivery Group

The sub items of a BOM may be available at different times due to the lead times

in procurement (MM) and production (PP). The delivery group can be used to indicatethat all the sub items must be delivered together. This means that the sub items must be

delivered as a group. If a delivery group applies, it is indicated on the item category. if adelivery group is assigned to the item category of the sub items, the system will

determine the latest schedule line of the items and confirm the delivery date according tothat last schedule line.


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For a delivery group to perform correctly, the following must be ensured

The delivery group can only contain one BOM.

It cannot contain any fixed quantities. It cannot contain any items that have partial delivery indicator C (one-time

delivery). It cannot contain any partially delivered items.

It can only contain items that can be at least partially delivered. It can only contain items that have a maximum of one requested schedule line.

Incompletion Log

Whenever a sales document is prepared, it can be checked if the document iscomplete or not by referring to the incompletion log. This incompletion log gives the

details of the fields that are required to be filled so that the document can be processed

further. It is mandatory for the document to be complete before proceeding further.

Delivery and Invoicing

Once the sales order is created, the goods are to be sent for delivery and the

invoicing is to be made. The sales order can be sent to delivery or directly invoiced, that

is, in the case of non-delivery items.

Delivery

When a sales order is to be delivered, we create a delivery document. After the

delivery document is prepared, the posting goods issue is done.

Delivery Document Type

A delivery document type is similar to the sales order document type. The settings

control how the delivery is to be carried out at highest level and it has a delivery item

category assigned to it.

MENU PATH :

IMG, Sales and distribution, Shipping, Deliveries, Define delivery types

TRANSACTION CODE : [OVLK]

If the required delivery document type exists, it is selected. Else, a new document is

created by copying the existing type and editing it.


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The sales document type is to be assigned to the delivery document type.

The storage location and the shipping point are given in the sales order.

The item categories of a delivery are referenced from the sales order.

The shipping conditions, loading group and the delivering plant decide theshipping point.

It is important that this shipping point is assigned to the plant.

Delivery Process

It is possible to create a delivery either via the menu path, individually from the

sales document, or via the delivery due list.

For creating an individual delivery document :

MENU PATH :

IMG, Sales and distribution, Shipping, Delivery, Create

TRANSACTION CODE : [VL01]

The shipping point, selection date and the sales document number for which the delivery

is to be done are required.

For creating the delivery through the sales document, clicking sales document, deliver

creates the delivery document.


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Post Goods Issue (PGI)

Once the delivery document has been prepared and the goods have been

transferred to the carrier, the goods issue is posted.

The posting of goods issue causes the system to :

Update the stock quantities automatically update the posting to the general ledger accounts

Invoicing

Invoicing may be done directly from the sales order document or after thedelivery and posting goods issue is done. Thus, the billing process can be order or

delivery-related and may include the billing of standard deliveries as well as the creation

of debit and credit memos.

Billing Document Type

The billing document is similar to the delivery document. We can maintain an

existing document or copy and edit an existing one as per our requirements. The header

data of a billing document defines how the invoice is to behave.

MENU PATH :

IMG, Sales and distribution, Billing, Billing documents, Define billing

types

Billing Process

It is possible to create a billing either via the menu path or individually from the

sales document.

For creating via menu path, the transaction code is [VF01].

For creating the billing document via sales order, clicking sales document, billinggenerates the billing document.

Once a billing document is created and saved with no errors, the system will

automatically post the document to accounting. If an automatic posting block is placed,then the system will only post the billing document once it is released by selecting

Logistics, Sales and distribution, Billing, Billing document, Change, Release to

accounting.


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The flow of the sales document can be traced at any time using the display

document flowbutton or shift+F5in the display sales order screen.

Account Determination

Account determination also uses the condition technique in order to allocate the

correct GL account to the account key, as assigned in the pricing procedure. Whenever a

sale is posted to accounting, a determination procedure is used to find the accounts, theaccount determination procedure. This procedure contains a condition type to find which

account to post to based on the conditions of the sale. The condition type searches all the

records that contain accounts for conditions that match the sale in the order of the access

sequence. As soon as it finds a record that matches the conditions, it returns a conditionvalue (in this case the GL account).

MENU PATH

IMG, Sales and Distribution, Basic functions, Account assignment,Revenue account determination, Check master data relevant for account

assignment

Through Check master data relevant for account assignment, we can create account

assignment grouping criteria. This grouping criteria provides the system with an extravariable in determining the required account number.

To recreate new entries, the existing standard can be copied and renamed using an

alphanumeric key of two characters with a short description. After the creation of theseaccount keys, it must be ensured that they are assigned to the material master record. The

same is true for the customer account keys.


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Account determination is possible by going to IMG, Sales and Distribution, Basicfunctions, Account assignment, Revenue account determination, Define dependencies of

revenue account determination.

The access sequences can be maintained by going to IMG, Sales and Distribution,

Basic functions, Account assignment, Revenue account determination, Define access

sequences and account determination types.

The standard system has an account determination type with the key KOFI which has five

condition tables assigned to it. This KOFI access sequence can be used for mostbusinesses, with the possible exception being that maybe not all the condition tables will

be used. In this case, the access sequence is copied, renamed and then this new access

sequence is allocated to the relevant account determination type (condition type). Within

the new access sequence, one would now be able to delete condition tables that are not

being used, thus improving on system performance response times.

The account determination procedure is then assigned to a billing type. This canbe done by going to IMG, Sales and Distribution, Basic functions, Account assignment,

Revenue account determination, Define and assign account determination procedures,

Assign account determination procedure.

One now needs to create the account keys that are going to be used in the system.

This is possible by going to IMG, Sales and Distribution, Basic functions, Accountassignment, Revenue account determination, Define and assign account key. Here one

can create an account key, which is a three-character alphanumeric key with a shortdescription. The assignment of the account key is the actual process of assigning the

account key to the condition type.

By going to IMG, Sales and Distribution, Basic functions, Account assignment,

Revenue account determination, Assign G/L accounts we can assign the G/L accounts to

the condition table. Before the GL accounts can be assigned to the condition tables, thechart of accounts and the GL accounts must be created by the FI module.

Output Determination

Output is a form of media from a business to one of its business partners. The possible

media forms are printouts, faxes, telexes, e-mails, and electronic data interchange (EDI).

The output can be sent to any of the partners defined in the document. Outputs areusually in the form of order confirmations, delivery notes, invoices, and shipping

notifications


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An output typeis simply a type of output and it contains all the control features

for the output. It defines the kind of output, which business transaction it applies to,which business partner receives the output and how the output is sent. The output type is

thus the central component of the output determination.

MENU PATH :IMG, Sales and distribution, Basic functions, Output, Output

determination

Output determination can be maintained as

originating from the customer master record originating by using the condition technique

Output determination using the condition technique

MENU PATH :

IMG, Sales and distribution, Basic functions, Output, Outputdetermination, Output proposal using the condition technique, Maintain output

determination for sales documents

The output determination is similar to that of the pricing procedure determination. The

steps for output determination are :

1. The required fields are put into the field catalog

2. The condition tables are created3. The access sequences are created

4. The condition tables are assigned to the access sequence5. The condition types are created

6. The access sequence is assigned to the condition types

7. The determination procedure is created and condition types are assigned to it

8. The determination procedure is assigned to the sales document

Tax Determination

The SAP R3 system automatically determines and calculates taxes based on theorganizational structure, country, region, or city of delivering plants and country or

receiving customer in combination with tax relevancy indicators on the customer andmaterial master records.

MENU PATH

IMG, Sales and distribution, Basic functions, Taxes, Define taxdetermination rules

TRANSACTION CODE : [OVK1]


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When assigning the tax condition type or tax category to the country key, thesystem will only list the condition types that are regarded as type taxes in the condition

class of the condition type.

After assigning the tax condition type or tax category to the country key, one

needs to specify if more than one tax is required and in which order the system is toaccess the condition records. This is done by assigning the relevant tax condition types to

the relevant country keys and by assigning an access sequence number.

The country codes must be defined and the city codes must also be defined if

applicable to the areas. This can be done by accessing the Define Regional Codes.

MENU PATHIMG, Sales and distribution, Basic functions, Taxes, Define Regional

Codes

Now, the delivery plant must be assigned to the country/city code for tax purposes

and then the indicators that are represented in the customer and material master records

should be created.

MENU PATHIMG, Sales and distribution, Basic functions, Taxes, Assign Delivery

Plants For Tax Determination

It can be specified if the customer is liable for taxes or not. One can then assign a

relevancy indicator to the tax condition type or tax category in the menu option. The

system uses the indicator as found in the Billing view of the customer master record.

Similarly, the relevancy indicator for the material type can also be specified in the menuoption.


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