SD Study Material Part 1

SD

Study material

-

Part I

1.

SAP Screen Elements

_________________________________________________________ 4

2.

Enterprise Structure

___________________________________________________________ 6

3. MASTER DATA

________________________________________________________________ 13

4. CUSTOMER MASTER DATA

____________________________________________________ 15

5. COMMON DISTRIBUTION CHANNELS & DIVISIONS:

______________________________ 25

6. CUSTOMIZATION OF CMD or ACCOUNT GROUP:

________________________________ 29

6. MATERIAL MASTER DATA

_____________________________________________________ 32

8. SALES DOCUMENTS

___________________________________________________________ 39

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

____________ 63

10. ITEM CATEGORY ______________________________________________________________ 67

11. SCHEDULE LINE CATEGORY

__________________________________________________ 70

12. SALES ORDERS

______________________________________________________________ 73

BASIC FUNCTIONS

______________________________________________________________ 75

13. PARTNER DETERMINATION: VOPA

____________________________________________ 75

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

22. SALES INCOMPLETION LOG / INCOMPLETION LOG

___________________________ 118

23. SHIPPING ___________________________________________________________________ 124

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

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

28. CREDIT MANAGEMENT

______________________________________________________ 285

29. INTERCOMPANY SALES & BUSINESS PROCESSING

__________________________ 301

Pre-requisites for Inter company sales processing

________________________________ 302

30. AVAILABILITY CHECK

_______________________________________________________ 317

31. CROSSING SELLING

_________________________________________________________ 333

32. Batch Management

__________________________________________________________ 336

1. SAP Screen Elements

Command field: You can use the command field to go to applications directly by entering the

transaction code. You can find the transaction code either in the SAP Easy Access menu tree (see next slide) or in the relevant application under System® Status.

Menu bar: The menus shown here depend on which application you are working in. These

menus Contain cascading menu options.

Standard toolbar: The icons in the system function bar are available on all R/3 screens. Any

icons that you cannot use on a particular screen are dimmed. If you leave the cursor on an icon for a moment, a small flag will appear with the name (or function) of that icon. You will also see the corresponding function key. The application toolbar shows you which functions are available in the 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?

Use the menu option System® User profile® Own data to set your own personal profile. You can choose between the Address, Defaults and Parameters tabs.

Address: You can create and maintain personal data here, for example, name, function, room

number, telephone number, e-mail addresses and so on.

Defaults: Defaults include the date display format, the decimal notation format, the default

printer, the logon language, and so on.

Parameters: Use this to assign entries to commonly used fields. This is only available for input

fields that have been allocated a parameter ID.

Procedure for finding out a field’s Parameter ID: Go to the input field to which you want to

assign a value. Choose F1, then the “Technical info” pushbutton. This opens a window that displays the corresponding parameter ID (if one has been allocated to the field) in the “Field data” section.

The User profile menu also contains, among others, the following options:

Hold data, Set data, Delete data. Use Hold data to keep data values that you have entered in fields in an application for the duration of a user session. When you call up the application again, you can overwrite these values. Once you have set data, you can no longer overwrite these values and have to use Delete data if you want to enter different values.

2. Enterprise Structure

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

ENTERPRISE STRUCTURE IN SAP

Level Enterprise

Structure Organization Structure in SAP Module

1 Cost Account Controlling Area CO 2 External Logistics Sales Org Purchase Org SD / MM 3 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 digits code). It is the highest level of organizational element in Ent Stru, which allows posting revenues to G/L accounts.

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

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

• Division :(2 digits code) the range of goods or services that the company manufactures falls into 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 sales areas.

• Sales District: Also referred as customer districts, can be geographical area or regions. You find this field in Customer master data that are copied into the Header & Item data of the sales order. 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 Many

o Sales Organisation to Distribution Channel: Many to Many

o Distribution Channel to Division: Many to Many.

o Plant to Company Code: Many to One. In Intercompany: Many to Many

o 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:

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: OVR0

SPRO- 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 orgn

Assign Division to Sales orgn Set up sales area

Assign sales office to sales area Assign sales group to sales office

Assign plant to sales orgn – Distbn channel Business area account assignment:

Define rules by sales area

Assign 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 Conditions

Loading Group Delivering Plant

ORGANIZATIONAL UNITS

1.

ORGANISATIONAL STRUCTURE: ENTERPRISE

Structures represent the legal and organizational structure of a company. Structure is possible from the point of view of SD, FI & MM. It is possible to combine these structures. The organizational structures 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

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

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 representative for the actual Dist Channels / Divisions assigned to it (defined separately for Customer / Material

Masters & 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.

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 be near 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 10 Lev el Can be assigned to -> Cmpy Code Chart of Acct Sales Org Dist Chanel Dist Chain Divi Sales Area Sales Off Sales Group Plants Ship Point

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 - - -

Attributes & Application

Org Units

Attributes

Application

Sales Organization

•

Name and

Address

•

Language and

Currency

•

Factory Calendar

•

Rebate Processing

•

Intercompany Sales

•

Account Determination

•

User Level Authorization

Distribution Channel

•

Name

•

Controls Material Master Sales

View ( along with Sales Org)

•

Other master data such as

Conditions

•

User Level Authorization

Division

•

Name

Master Data creation such as

Customer & Conditions

•

A Material belongs to exactly

one Division

Sales Area

•

Assignment Only

•

Pricing

•

Free Goods

•

Output Determination

•

Partner Determination

•

Document Types

Company Code

•

Name and

Address

•

Language and

Currency

•

Balance Sheet & Profit & Loss

statement.

•

Transfers financial Information to

Controlling

•

Revenue Accounting

•

Credit Policies

•

User Level Authorization

Plant

•

Name and

Address

•

Language and

Currency

•

Factory Calendar

•

Taxation

•

Inter-company Sales

•

Master data maintenance

•

User Level Authorization

Storage Location

•

Name and

Address

•

Physical Inventory

•

Delivery Processing

•

Reporting

Shipping Point

•

Name and

Address

•

Factory Calendar

•

Working hours

•

Lead Time

•

Delivery Processing

•

Transportation

AppsTwo_SAP_O2C_RP

3. MASTER DATA

USE:

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

• 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 or manually assigned numbers

• Mostly customers will belong to one Sales Area. They can also be extended to many other sales 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 are maintained at other Org level like Plant Level.

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

• Material Master has apprx. 800 fields.

3. Customer material info record:- Customers own description of the material which differs

from the original material of the organization. Customer Material Info Record is basically used to store the information about how a particular material is referred by a customer. Customer-Material Info Record has priority over Customer Master & Customer-Material Master data. For example during Delivering Plant determination the CM Info Record is accessed first

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 condition types.

• 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 manually during sales order processing. You may, for example, be able to enter or change certain

discounts within a specified range.

5. Additional master data: - It is nothing but out put master data. It is media of communication

send to customer thru various ways. Ex: Printout, Email, Fax. Generally SAP looks from the highest level of data to the lowest.

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 both the master records by entering the vendor number in the customer master record and the customer number 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 data

XD01/02/03 Opens Opens Opens

VD01/02/03 Opens X Opens

FD01/02/03 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. & Vendor 3. Marketing: Customer Classification.

4. Payment Transactions: Name of Bank.

5. Unloading Points: Goods Receiving Hours. OVSC

6. Export Data 7. Contact Person.

Important Fields

Screen

Application

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

Transportation Zone

Address The system automatically proposes a suitable route by using the transportation zone of the goods recipient in combination with other information about the delivery, such as the Countries of origin and destination, Shipping conditions & Transportation group.

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

Registration number

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

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

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

Customer Classification

Marketing The customer can classify as per the reporting requirements for that industry & can be used for reporting.

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 normal postings.

• Payment Transactions: Payment terms

• Correspondence • Insurance Important Fields Screen Application Reconciliation Account Account Management

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

Payment Methods

Payment Transactions

List of payment methods which may be used in automatic payment transactions with this customer/vendor if you do not specify a payment method in the item to be paid. Terms of

payment

Payment Transactions

Key for defining payment terms composed of cash discount percentages and payment periods. Dunning

Procedure

Correspondence When the customer needs to be send reminders for payment. 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 Insurance

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 Item Proposal.

 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.

Important

Fields

Screen

Application

Sales office

Sales

Sales Office defines Geographical aspects of the organization

in business development and sales. Used for Reporting.

Sales group

Sales

The staff of a sales office may be subdivided into sales

groups. Used for Reporting.

Customer

pricing

procedure

Sales

Determines which pricing procedure the system should apply

when you create a sales document for the customer.

Customer

Statistics

Group

Sales

Specifies a statistics group for this customer and helps

determine which data the system updates in the logistics

information system.

Shipping

Conditions

Shipping

General shipping strategy for the delivery of goods. The

Shipping condition along with other entities determines the

shipping point & Route proposed by the system.

Account

Assignment

Group

Billing

Group of customers with the same accounting requirements.

The grouping can be domestic customers, foreign customer,

an affiliate customer etc.

Tax

classification

Billing

The indicator with which the system determines output tax for

the customer when processing sales and distribution-specific

documents.

Customer Master – CIN Details

Additional Component - CIN details enables you to capture the tax related information for the

customer.

This information can be maintained either in customer master additional component - CIN

details or in J1ID – CIN master data transaction

Customer Master – Transactions

Transaction Codes Application

VS00

SD Main Menu for Customer

XD01

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 Group

XD99

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, for

e.g., Address, Unloading points, Vat reg., Contact person, and Tax classification are not copied. While country, language, account group are.

DISPLAYING CHANGES IN CMD:

Sales & Distribution: VD04 Several Customers: OV51

BLOCKING A CMD: VD05

DELETING 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 partner

functions 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),

Options for

Maintaining Customer

Master 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 Company Code. The Sales & Distribution Blocks can be for All Sales Areas or Selected Sales Area for Order, Delivery, and Billing & Sales Support Blocks.

Deletion flag The customer can be flagged for deletion for All Sales Areas or Selected Company Code or Selected Sales Area. The deletion blocks can be for General Data or Selected company code including general data. Data records such as Customers & Materials can be flagged for deletion but they do not get deleted from the system and can be used to process a transaction. To avoid any confusion, the name / description of these records is changed to <DO NOT USE xxxx>.

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 created by whom & when.

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

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

Customer links to Documents

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

Additional Customer Data

SAP provides 10 freely definable fields for attributes & 5 additional fields for condition 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 the sensitive fields (for example Payment Terms). Sensitive fields need to be configured so in Customizing in FI menu. The changes include Deletions if any.

Customer Material Information

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

Credit Management

This search criteria takes you to the customer credit management FD33 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 for that 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.

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, the

address in the customer master is an exception. Therefore, if it was necessary, you would have

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 choose

CUSTOMER MATERIAL INFORMATION RECORD: VD51

Customer uses a number or description for a material, which differs from the number or description of your company uses to identify it, you can store the material number or description used by the

customer in the customer material information record.

Menu path: Easy Access- Logistics- SD- Master Data- Agreements- Customer mat info- Create/

change / display.

T. Code:

VD51 – Create VD52 – Change VD53 - Display

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

• 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 the sales 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 cust mat info record.

5. COMMON DISTRIBUTION CHANNELS & DIVISIONS:

You can define common distribution channels & divisions. This is possible for 2 areas of SAP, for all master relevant data, and for all condition relevant data.

Menu Path: SPRO- IMG- SD- Master Data- Define common Distribution Channels & Define common

Divisions. (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 distbn channels & divisions separately for master data (which combines customer master & mat master records), group cond records, or both master data & cond records.

Let’s 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 customers’ details when they purchase through one or the other. Thus, you will not want to create a multiple 4 view of CMD & MMR. Merely create the CMD & MMR in one of the distbn channels, such as retail. Then assign the other distbn channels you created in the organizational structure setup to this one.

• Don’t forget this means you can only create or change master data in the distbn channel that is being referred. In the scenario above, this means you can only change the data for the retail distbn channel. If you select other distbn channels, you will receive a message “sales area is not defined…”

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 other distribution 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 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 channel 03, the system checks the condition data against the data defined for distribution channel 01.

Distbn Channel Ref Distbn Channel

01 01

02 01

03 01

04 04

Reference Distbn Channel for cust and material masters:

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

Procedure

You can specify one distribution channel as the source of customer and material master data for other distribution 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 channel 03, the system checks the customer and material master data against the data defined for distribution channel 01.

Sales Orgn Div Descp Div Cond Descp Div Customer Descp Reference division for conditions

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

In this example, only divisions 01 and 04 have conditions defined. Divisions 01, 02, and 03 share the conditions defined for division 01. Division 04 has its own conditions. If you create a sales order in division 03, the system applies the conditions from division 01. You cannot create condition data for divisions 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 03 share 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.

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

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.

You cannot use this kind of processing to enter multiple materials with various divisions in an order.

6. CUSTOMIZATION OF CMD or ACCOUNT GROUP: OVT0

Spro- IMG- Logistics General- Business Partner- Customer- Control- Define Account Group & Field Selection For CMD.

When you create a master record for a business partner, you must enter an account group. The account group determines:

• Which screens & fields are necessary for entering master data

• How master record numbers are assigned (externally or internally)

• Which partner functions are valid

• Default value for pricing procedure indicator

• Out put control

• Whether the business partner is a one time customer or one time vendor.

• Suppressed Entry, Required Entry, Optional Entry & Grayed Out or Displayed.

NOTE: Don’t forget to allocate this new account group into the list of allowed account numbers for

partner determination. The Account groups are defined in Finance.

No. Range customization for account group: OVZC

SPRO- IMG- Logistics General- Business Partner- Customer- Control- Define no range for CMD OVZA: is for no range customization of sales documents.

Can be

defaulted in

the Master

Record

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

SOLD TO PARTY: - Who places orders. Only needs sales relevant data. However a sold to party can 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 to

access 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 following

ways:

• Externally: You assign the number. In this case, you define a number range that allows for

alphanumerical number assignment. The system checks whether the number you enter are unique and within the number range defined by the account group.

• Internally: The system assigns a consecutive number automatically from a number range

defined by the account group

.

The account group determines whether external or internal number assignment is allowed for a business partner master record. For account groups 0001 to 0005, for example, only internal number assignment 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 the

number range to assign different numbers to a head office and subsidiaries. In the standard R/3

System, the account groups for the following customer partner functions are in the same number range so the numbers for these customer master records are assigned consecutively:

Sold-to party

Ship-to party

Bill-to party

Payer

Integration

A customer's number is unique for all sales areas and company codes. A vendor's number is unique for all purchasing organizations and company codes. You first create a master record for your business partner in one sales area. You then create a second master record for the same business partner in another sales area. In this case, the system identifies the business partner number and does not display the existing general data from the first master record for maintenance. You can use the change and display functions to access the general data.

Prerequisites

In Customizing you define the number ranges that are to be available. You do this in the following activities:

• 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

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 company’s requirements.

• The material type determines certain attributes of the material and has important control functions.

Material Types Are:

1. Raw materials

2. Trading goods: HAWA 3. Semi-finished goods 4. Finished products: FERT 5. Services: DIEN

6. Non-stock material: NLAG

Menu path:

• Easy access- Logistics- SD- Master Data- Products- Material- Other Material- Create, Change &

• 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. For

example pricing does not take place for free of charge item. The system determines Item category based on Item category group.

Customization of Material Master Data: T.Code: OMS9

How 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 General

data, 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 in Environment tab page:

1. Display changes (MM04): - you will find what are the changes have you done to the particular material 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 Data2 Sales orgn1, Sales orgn2 Sales General Plant Sales Text

Foreign trade 1 & 2 Basic Data 1:

Base unit of measure Division

Material group Gross weight Net weight

Weight unit: gm or kg

Basic Data 2: dangerous goods details Sales Orgn 1:

Delivery plant

Tax classification of material Minimum order quantity Minimum delivery quantity Sales unit

X- Distbn. Chain Status: (The cross-distribution-chain material status restricts the usability of the material for all the distribution chains.)

Sales Orgn 2:

Item category group

General item category group Material Pricing Group Pricing 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 Master—Basic data: Basic data is valid for the whole company. The Organizational

Levels dialog box does not appear before you access this data screen

Important Fields

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 of Measure

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 generally populated from there.

Material Group Basic Data 1 Key that you use to group together several materials or

services with the same attributes. This is a very important field for reporting & analysis

X-plant material status

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

Procurement, Production etc.

Size/Dimensions Basic Data 1 It’s a Text field that you can use as you like. The filed length is 32 characters.

Material is Configurable

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

Material Master – Sales Views

Important

Fields

Screen

Application

Sales Unit of

Measure

Sales: Sales

Org. 1

Enter a value in this field only if you want to use a unit of

Measure differing from the base unit of measure.

Delivering Plant Sales: Sales

Org. 1

This plant is automatically copied into the sales order item

as the default value

Tax

classification

material

Sales: Sales

Org. 1

The indicator with which the system determines output tax

for the material when processing sales and

distribution-specific documents.

Material

Statistics Group

Sales: Sales

Org. 2

Specifies a statistics group for this material and helps

determine which data the system updates in the logistics

information system.

Account

assignment

group

Sales: Sales

Org. 2

Group of materials with the same accounting requirements.

Item category

group

Sales: Sales

Org. 2

Materials’ grouping that helps the system to determine Item

Categories during sales document processing.

Checking Group

for Availability

Check

Sales:

General/Plant

Specifies whether and how the system checks availability

and generates requirements.

Transportation

group

Sales:

General/Plant

A grouping of materials that share the same route and

transportation requirements.

Loading group Sales:

General/Plant

A grouping of materials that share the same loading

requirements.

Material Master – Environment

Master Data Purpose

Defaults Data This option in Material Master allows you can set Industry Sector Default, Hide Industry Sector in Industry Sector, Default views & Default the organizational data for the material.

Information on

Material This is the only place wherein we can see the material details in change or _{display mode of the transactions. These details are Industry sector, Material} Type, Created by, Creation date, changed by, changed date, View wise status information such deletion flags or locks for a material.

Display Changes _{List of all change documents for the material}

Stock Overview This search will directly take you to MMBE transaction for stock display at plant & storage location level.

Material Master – Additional Data: Descriptions in different languages, Units of measure, Basic

Data Text etc can be maintained in Additional data

Adding Division does not multiply the material master views. But it does multiply the customer master views.

Material Master – Transactions

Transaction Codes Application

MM01 Create Material MM02 Change Material MM03 Display Material

MM04 Display Material Change Documents MM06 Flag Material for Deletion

MM17 Mass Maintenance: Indus. Matl Master MM50 List Extendable Materials

MM60 Materials List

MM70 Select Materials Flagged for Deletion MMSC Enter Storage Locations Collectively MMAM Change Material Type

MR21 Change Material Price

Material Master – Mass Maintenance (T. code: MASS,

MM17)

8. SALES DOCUMENTS

Purpose:

The sales department of any organization carries out a wide range of activities, each involving a great deal 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

Definition:

• Pre-sales document: Inquires & Quotations.

• Sales Orders: OR/ RO/ CS.

• Outline Agreements: Contracts & Scheduling Agreements.

• Customer Complaints: Free of Charge Delivery (FD), Free of Charge Subsequent Delivery (SDF), Credit Memo (G2), Debit Memo (L2), Returns (RE).

This slide represents the relationship between the processes in sales order processing in the SAP

System. The sequence from top to bottom represents the order of events in the sales process. The boxes represent sales and financial accounting documents.

Sales activities and promotions are documents for sales support in pre-sales.

Sales documents are documents that are entered during pre-sales and sales order processing. Inquiries, quotations, contracts, scheduling agreements and standard orders are examples of sales document types.

Outbound deliveries, transfer orders and shipments are documents in shipping processing. The goods issue document contains changes involving stock and is the basis for the relevant

accounting documents.

The billing document is a document in billing and is the basis for the relevant accounting documents.

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

Sales order:

Sales order is a contractual agreement between a organization and a customer about delivering products 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 processing information and Billing information.

STRUCTURE OF SALES DOCUMENT:

All sales documents have basically the same

structure.

•

Header Data:(VBAK):

•

Item Data :( VBAP):

•

Schedule Line Data :( VBEP):

FUNCTIONS OF SALES DOCUMENT:

• Determining the delivering plant, Shipping point & Route automatically

• Availability check System’s ability to automatically determine a delivery (promise) date for a sales order

• Delivery Scheduling – determines lead times for delivery processing.

• Transfer of requirements - determines the item requirements to be passed to

materials 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 with

sales order information to plan and control sales.

• Checking Credit Limits

• Output

• Text

Types of Sales Documents used in Business process

1. INQUIRY (IN): Non-Binding Agreement: For example, a customer inquires whether we have a

certain product in our warehouse, how much it will cost, or whether the product will be available for a certain date. The inquiry will not be sent to the customer.

A customer’s request to a company that they provide a quotation or sales information without obligation. Doc Type: IN, Trans Code to Create inquiry: VA11. The standard item category for inquiry is AFN.

2. QUOTATION (QT): Binding Agreement from <Client>: A quotation presents the customer with

a legally binding offer for delivering a product or service within certain fixed conditions, such as the validity period and the terms and conditions.

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

3. Out Line Agreements:

(A) SCHEDULING AGREEMENTS: Outline agreements with determined schedule lines. A

delivery 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 delivery quantities and dates. Trans Code: VA31. Doc Types: DS- Scheduling Agreements, COB- Sch Agreements BR, BL- Sch Agreement w/del schedule.

(B) Contracts (VA41):- Outline agreements with fixed quantity or value that a customer promises to

order over a specified period of time, as well as the price involved. It requires a release order to make a delivery. 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 – Invoicing

or Billing.

5. Rush Order (RO): It means immediate delivery, but account is not settled immediately. Sales

order –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 Company’s stock at customers place.

Consignment Fill up (CF): Ex: Assume that company kept 100 boxes of Crocin tabs at NIMS

hospital. But it is property or owner ship is with company. This is called as consignment Fill up. No Billing will be done here.