The value of this field will be taken into consideration by the system to determine shipping point (outbound delivery) along with loading group from the material master and delivering plant of line item.
The value of this field also will be taken into consideration to determine ROUTE.
Example: If a particular customer requires always immediate delivery, then we have to enter in his customer master
shipping conditions as a 10 = immediately. That means we have to process orders for this customer by giving high priority. System automatically proposes the express mailroom as a shipping point and the quickest way to the airport as a ROUTE.
Procedure: We can define shipping conditions in the customer master and in the VOV8 of that particular
document. Ex: OR = Standard order
If we maintain in the both areas then system will give the priority for sales document type Ex: OR. We cannot change the shipping conditions in delivery document processing.
The shipping conditions will not be copied from delivery document to shipment or shipping document.
Shipping conditions can be used as one of the selection criteria for deliveries when we create a shipment. We can enter shipping conditions manually in the shipment where it only serves as characteristics for grouping shipment.
Path:
IMG
Logistics Execution Shipping
Basic shipping functions
Shipping point and goods receiving point determination Define shipping conditions
Click on new entries
Define our shipping conditions by filling the data in required fields Save and Exit
Delivering plant: Ex: [0003 = Sri Plant – 1]
We can specify the plant from which the goods should be delivered to the customer.
Use: The plant is automatically copied into the sales order item as a default value. Procedure: The value proposed in the item is either
(A) Customer material info record (B) Customer master (Ship – to – party) (C) Material master record
(D) OR Manually it is to be proposed
FAQ: How plant determines for a line item in the sales document?
ANS: System determines plant for a line item automatically by following above specified criteria.
Check Relevant for POD (Proof of Delivery): In general business process with reference to sales order delivery
can be carryout with reference to delivery. The billing can be carried out between delivery and billing. The business can wait for acknowledgement form Ship – to – party whether the party has physically received goods. So as to map this business process we can check relevant for POD option in the Ship – to – party customer master. Then the system can wait for sometime (that is specified POD time frame field). The system waits up to that period for receiving POD and blocks billing document until that period. Once the POD has been received by the business, then system allows to raising the billing document.
If the business does not receive the POD that has been specified in the POD time frame then system assumes that goods has been received by the Ship – to – party physically and allows billing document processing.
POD time frame: This field qualifies the above field.
Check order combination: It indicates whether the business allows combining orders during delivery processing.
Procedure: System proposes this value from the customer master (Ship – to – party) into the sales document. That can be changed manually.
If the business deliveries the goods to the same Ship – to – party, then those deliveries can be processed in a single document collectively. Provided shipping conditions and ROUTE is the same.
Partial deliveries: Complete delivery required by law: It indicates whether sales order must be delivered
completely in a single delivery or whether the order can be partially delivered and completed over a number of deliveries.
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Partial delivery for item: If the business wants to allow partial deliveries for item that we can specify here. Ex: Value “D” stands for no limit to subsequent deliveries.
Maximum partial deliveries: [9] The line item can be spitted into partial deliveries up to “9” only (system
proposes this value). That means we cannot do more than “9” partial deliveries for line item. This value is not worthwhile if we set “D” in the partial delivery for item field.
Check unlimited tolerance: This control enables for under delivery and over delivery tolerance.
Under delivery tolerance and over delivery tolerance: These two fields qualify the above control. That is
unlimited tolerance. If we check unlimited tolerance then system enables the end user for under and over delivery tolerance for particular order.
If the customer placed the order for 100 items then the business wants to send only 90 items. In some cases it wants to send 110 items. It can be map by under delivery and over delivery tolerance respectively. The tolerance percentage can be specified in under delivery and over delivery field.
General transportation zone: So as to determine ROUTE for particular line item system takes transportation zone
from the:
(A) Customer master (Ship – to – party) (B) Source and destination countries
(C) Shipping conditions from the customer master (Ship – to – party) (D) Loading group from the material master.
Billing Tab:
Subsequent invoice processing: It indicates if the invoices for manual post processing should be printed out. If the
business wants to post invoices manually (not by system automatically) that invoice can be printed out.
Check Rebates: If the business wants to process Rebates for this customer (Bill – to – party) then three -control
parameters should be checked.
(A) Definition of sales organization (B) Customer master (Bill – to – party) (C) At billing document level.
NOTE: Uncheck Rebate processing control parameters if you do not want to process Rebate as it affects system
performance.
Check Price determination: If you want to process pricing for customer hierarchy then you should check it. Invoice dates and invoicing list dates: It identifies the calendar that determines the schedule of billing dates for
the customers.
Use: If a customer wants to consolidate the invoices that we send out, we can predefine the billing schedule in a
calendar in the system. During billing the system automatically proposes the appropriate billing dates from the calendar.
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Invoice list dates: An invoice list is a list of invoices (single or Collective) that we create for the customer either
periodically or on predefined dates. The periods and dates define in the customer’s factory calendar. The recipient of invoice list takes on the responsibility for collecting payments for numerous individual customers and receives a factoring discount for the service.
Procedure: We must assign factory calendar in the customer master (Bill – to – party). Pre – requisite: We must define factory calendar in IMG sales or Logistics.
Define Customer Calendar: Transaction code: OVR3 Path:
IMG
Sales and distribution Master data
Business partners Customers Shipping
Define customer calendars Click on change icon
Click on create icon on the application tool bar Choose © with fixed date radio button Click on create icon or press ENTER
Define day, month and public holiday short and long description Click on create icon again
Click on Go back icon or press F3 © Select holiday calendar Click on change icon Again click on create icon
Define our calendar ID with description Specify the valid periods (in years) Click on assign public holiday push button Choose our public holiday from the list
Click on assign public holiday push button again Save it and go back 2 times
© Define factory calendar by choosing factory calendar radio button Click on change icon
Click on create button
Specify factory calendar ID, description, validity periods
Specify the holiday calendar ID that we defined in the previous step Choose working days in a week
Save and Exit
INCO TERMS: International Chamber of Commerce of terms of liability for freight (charges) in transit. Ex: [CIF = from Hyderabad].
Inco Term 1 and Inco Term 2: Specify inco term 1 and inco term 2. System takes the value of these two fields
into consideration for condition type “KF00” for freight charges. The values will be proposed into sales (document) order that can be changed manually.
Path:
IMG
Sales and distribution Master data
Business partners Customers Billing document Define Inco terms Click on new entries
Define our Inco terms by filling the data in required fields with or without location mandatory Save and Exit
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Terms of payment: The value of this field will be taken into consideration to calculate cash discount condition
type “SKTO” can be used in pricing procedure.
Ex: 0001 = Payable immediately due not. 0002 = With in 14 days 3% cash discount.
With in 30 days 2% cash discount. With in 45 days due not.
IMG
Sales and distribution Master data
Business partners Customers Billing documents Define terms of payment Click on new entries
Define our terms of payments by filling the data in all required fields Save and Exit
Account assignment group: We can use this field to determine Revenue accounts, sales deductions, etc as an
account determination. These fields will be used as a mandatory field for account determination (SD and FI/CO integration).
Output Tax: It specifies the tax liability of the customer based on the tax structure of the customer’s country. Use: We use the tax classification to specify whether the customer is liable for sales taxes Ex: VAT, sales tax, etc.
During sales order processing, system determines tax for the customer as well as for the material by following the below specified search criteria.
(A) First it searches customer master (Payer). If the payer is different from the Sold – to – party and the sales tax identification number is maintained for the payer.
(B) Then it searches customer master (Ship – to – party). If the sales tax identification number of the Ship – to – party is maintained.
(C) It the customer master (Sold – to – party) will be taken into consideration. If A and B the tax classification number has not maintained.
During pricing, system calculates input/output tax by taking the following factors into consideration. (A) Tax classification of the customer and the material.
(B) The country keys of the customer and the delivering plant.
Condition type: “MWST” FAQ: How system determines Tax ANS: Above procedure
The condition value of the “MWST” maintained and provided by FI/CO consultants. As a SD consultant we can specify that code while maintaining condition records for this condition type “MWST”.