MALIK IMTIYAZ-SAP SD NOTES
ENTERPRISE STRCTURE
CLIENT (Company)-
A client is a self-contained technical unit. A client can be considered to be a synonym for group.
Company Code
• A complete Accounting unit can be representing as the smallest organizational unit of external accounting.
• At Company Code level we create
§ Balance sheet required by law
§ Profit and Loss statement.
• Each company code represents an independent accounting unit. Several company codes can use
the same chart of account.
Assignment
§ Company code to company
§ Company code to Credit control area
§ Company code to Controlling area
§ Company code to financial management area
• (An FM Area is organizational unit which Plans, Controls and Monitors funds and commitment budgets)
§ Controlling area to financial management area
§ Controlling area to Operating Concern.
§
Sales Organization
• The highest-level of organizational unit in SD is Sales Organization.
• Responsible for Distributing goods and services, Negociation sales conditions, Product liability
and other customer rights of recourse.
• Sales organization is also used to take for example a regional, national or international.
• A sales organization assigned to a company code.
• A sales organization is assigned to exactly one company code.(it is unique assignment)
• A sales organization is assigned to one or more plants.
• Each sales organization has its own master data, for example, its own customer and material master
data as well as condition records
Distribution Channel
• Distribution Channel represents strategies to distribute goods and services to customer.
• DC is assigned to a sales organization. The assignment is not unique.
• You can share Customer, Material and Condition master data by maintaining a
reference/common DC.
•Distribution channels can be set up according to your company's market strategy or internal
Organization
Division
• A Division is used to group material and services. A material can have only one Division.
• We can make Customer- specific agreements for each Division, for example regarding partial
deliveries or pricing within Division. (In CMIR)
• You can share Customer and Condition master data by maintaining a reference/common
Division.
• A Division is assigned to a sales organization. The assignment is not unique.
• You can use cross division to enter multiple materials with various divisions in a sales order.
• You can choose division specific sales, it is controlled by customizing for sales document type.
Sales area
• A Sales area is a combination of a Sales organization, DC and Division. It defines the
Distribution channel of a Sales organization uses to sell products of certain Division
• By defining and assigning Sales Organization, DC and division a Sales area not automatically
formed, you have to set up a sales area.
• A sales area can belong to only one company code. Assigning the sales organization to
company code creates this relationship.
• Each sales and distribution document is assigned to exactly one sales area. This assignment cannot
be changed.
• Various master data depending on the sales area, for example customer master data, material
master data, price and discount. This system also carries out a number of checks concerning the
validity of certain entries according to the sales Area.
• Sales area assigned to Credit Control Area.
• Sales office assigned to Sales Area
• Sales group assigned to Sales office.
• Employee of a sales office can be assigned to sales group.
Business area
• The Business Area is a separate business unit for which internal reporting can be carried
out. A company code may be divided into multiple business areas. A business area may also be
shared by several company codes.
• Business area is not limited by company codes. For this reason, the business areas in all company
codes must have the same description. Using organizational unit is optional.
• Business area can be used to prepare balance sheets and profit and loss statements not only for
company code, but also for other internal areas (E.g., division-related).
• The relevant business area is determined for each order item according to defined rule.
Rules for Business area determination
§ Business Area assignment by Plant and Item division.
§ Business Area assignment by sales area.
§ Business Area assignment by Sales Organization and D.C, Item Division.
Plant
• The Plant is a location where material is kept. Represent a production facilities or Material
requirement planning in the System. In sales and Distribution, A Plant represents the location
from which Materials and Services are distributed and corresponds to a distribution center. The
relevant material stocks kept here.
• A Plant assigned to a company code.
• Inventory valuation is done either at company code level or Plant level, however the stock is
managed at Storage location level.
• A Delivering plant assigned to Combination of Sales organization and Distribution channel.
• Delivering Plant Determination in sales Document according to following step
1. CMIR-Always Sold to party
2. Customer Master-Ship to Party (Sales area- shipping tab)
3. Material Master- Sales Org. 1 View.
Ø CMIR has precedence over customer and material master.
• A plant is essential for determine the Shipping Point.
• In absence of a Delivering plant determination there can be no automatic determining of shipping
point or automatic tax determination, no availability check can be carried out and no outbound
delivery can be set up.
Shipping Point
• Shipping Point highest organizational unit in Shipping. A shipping point is under client level.
• A shipping point assigned to a Plant. A Shipping point can be assigned to multiple plants.
Various Shipping point can be assigned to same plant.
• The Shipping point can be a loading ramp, a mail depot or a rail depot. It can also be a group of
employees responsible only for organizing urgent deliveries.
• The shipping point is responsible for processing shipping. Each Outbound Delivery is processed
by exactly one shipping point.
• The shipping point is normally determined automatically (At item level) for each item in the sales
document. The automatic default value can be later changed manually in sales order if we have
planned for a different shipping point. We can change shipping point in delivery document only at
initial create screen before saving the delivery document.
• Shipping point determination based on these combinations.
· Delivering Plant
· Shipping condition- Sales document type OR Customer master data-Sold to Party
(Shipping Tab Page)
· Loading group-Material master data (Sales: Gen/plant)
Ø Shipping condition from sales document type has precedence over that from customer master.
Warehouse
• Warehouse having following organizational units for efficient processing of goods receipt and
goods issue.
Warehouse Number: The entire warehouse structure is managed under one warehouse Number. This number represents the warehouse complex.
§ Warehouse Number assigned to a combination of Plant and storage location.
§ You can group Transfer Order based on warehouse number.
Storage Type: The different warehouse areas, which differ with respect to their organizational and technical features, are defined as storage types (for example-high-rack warehouse with
random storage, picking warehouse with fixed bins, or shipping area).
Picking area: Below the storage Type level, The Picking area group together storage bins from a picking point of view.
Ø A delivery can be split up into different picking areas to make parallel picking possible.
Staging area: The staging area is a part of the warehouse where goods are stored immediately after unloading or shortly before loading.
Door: A Door can be used for both the inbound and outbound delivery of goods.
Ø Door determination takes place at the delivery header level. Staging area determination can take place at the delivery header level and item level. Different staging area at the delivery item level lead to a transfer order split because the staging area is a header level in the Transfer Order.)
• The connection of the organizational unit in the warehouse to MM Inventory Management results
from The Assignment of Warehouse No. To a combination of plant and storage location.
• You can Group Transfer order based on the warehouse number.
MASTER DATA
Customer master data, Customer material information record, material master data, Condition
master, Common master, Additional master data
Customer master Data
• The Customer Master data divided in following categories.
§ General Data: store centrally-Client specific, valid for all organizational Units.
§ Sales Area data:
§ Company Code data
· It includes all necessary data for processing Order, Deliveries, invoices and Cust. Payment.
General data having on following tab-
§ Address: Name, Address, and Language.
§ Control Data: Tax Information
§ Payment Transaction: Bank Details
§ Marketing: Industry, Customer Classification
§ Unloading Point: goods receiving Hours
§ Export Data: Data for export control
§ Contact Person: Address of business partner
Sales Area data having following tab pages.
Ø Sales: Sales office, sales district, currency, customer group, Customer pricing procedure, Price list.
Ø Shipping: Delivery, Shipping condition, Delivery Plant, POD Relevance, Partial delivery-
Check Complete delivery by law, Transportation Zone.
Ø Billing: Incoterm, Term of payment, Credit control area, Account Assignment Group, Tax.
Ø Partner Function: (Can different or Identical) Sold to Party, Ship to Party, Bill to Party, Payer
Company Code data having on following tab
§ Account management: Reconciliation account
§ Payment transaction: Payment method
§ Correspondence: Dunning Procedure, Accounting clerk
§ Insurance: Amount Insured
• Any changes in the customer master do not get reflected in documents created prior to the change
except for ADDRESS.
• Sales organization has to maintain own relevant sales area data if they sell product to customer
those belong to different sales organization.
• We can maintain the INCOTERM in customer master record in various ways, depending on the
sales area data.
• Account group controls customer master.
• Master data proposal in sales document-
§ Delivery date and tax information- From Ship to Party master record
§ Payment terms, Credit limit check- From Payer master record
§ Address to which invoiced to sent- From Bill to Party master record
§ Shipping conditions, Pricing, Incoterms-From Sold to Party
Customer Material Information Record(CMIR)
• Cross reference from your customer’s material no. to your material and customer material description.
By this sales order can be placed with the customer’s material no. by using Ordering tab page
• It keeps information about Delivering plant, Customer material no., and Delivery agreement-
Complete/Partial
Material master data
Ø Basic data 1 (valid all module area)-Old Material no., Division, Matererial group, Matererial
group packaging material, Base unit of measure, General item category group.
Ø Sales: sales org. 1: Delivering Plant, Material Group, Division, Condition, Tax data, Cash
discount, Minimum Order quantity, Minimum Delivery Quantity.
Ø Sales: sales org. 2: Material group, Bonus Group, Product hierarchy, General item category group,
Item category group, Product attribute
Ø Sales: Gen/Plant data: Availability Check, Transportation group, loading group, Batch
Management, Matererial group packaging material, Serial no. Profile
Ø MRP 3: Availability Check
Ø Plant/data storage 1: Batch management, Storage condition
Ø Plant/data storage 2: Serial no. Profile
Ø Foreign trade: Export: Export/ import group, Region of origin
Ø Sales Text: Item text for sale.
• Material Master is controlled by Material Type
TAB PAGES FOR SALES DOCUMENT
Initial screen- Create with reference, Sales, Item Overview, ordering Party.
Create with reference- inquiry, Quotation, Order, Contract, Scheduling agreement, Billing Doc.
Overview screen- Sales, item Overview, Item details, Ordering Party, procurement, Shipping,
Reason for rejection.
SALES
Sales Document
• A sales Document has three level-Header, Item and Schedule Line
•The sources of data in a sales document are-
§ Master data
§ Customizing
§ Other SD document/Existing document with data
§ Hard coded controls
• When we create a sales document, we can also enter the Ship to party instead of sold to Party.
The system then determines the Sold to Party from the ship to party customer master record. If there
are several possible sold to parties for ship to party, the system displays a selection screen with
possible alternatives.
• In sales order with fast change option you can change – Reason for rejection, Delivery block,
Billing block, delivery date, delivery priority and Plant.
• With Mass change option in a sales document list you can change- Plant, Materials, currency and
Pricing.
• A Billing Block can assigned at sales document header level and item level.
• A delivery block can assigned at sales document header and schedule line level.
• An item status is deemed completely if it has rejected by giving a reason of rejection.
Example of Sales document Type
| Pre-sale phase IN = Inquiry QT = quotation | Out Line agreement QC = quantity Contract DS = Scheduling Agreement QP = Rental Contract WK1 = General value contract |
| Sales Phase OR = Standard order RO = Rush order CS = Cash sales CF = Consignment fill-up FD = Free of charge delivery | Complaints RE = Returns CR =Credit memo request SDF = Free of charge subsequent delivery DR = Debit memo request |
Important Controls of Sales Document Type.
§ Reference mandatory from any other Document.
§ Check division-System reaction if division at item level is different from header level.
§ Item Division- If you mark this field, the system propose the division from the material master
record of the item else the division in the sales document header also count for all items.
§ Check credit limit
§ If the system reads any CMIR or Not.
§ Incompletion Procedure Assignment.
§ Document Pricing Procedure.
§ Message about open Quotation, open Outline agreement, etc.
§ Incomplete message switch- when ticked doesn’t allow you to save an incomplete document.
§ When unchecked the incompleteness is controlled by status groups of Incompletion Log.
§ Delivery type.
§ Delivery block
§ Shipping conditions
§ Immediate delivery switch
§ Billing plan type
§ Billing Type
§ Billing Block
• You can limit the validity of your sales document type at the level of sales organization, distribution
channel and division (i.e. for sales area)
Sales document Item category
Example of Sales document Item category
| Pre-sale phase AFN = standard item Inquiry AGTX = Text item in quotation | Out Line agreement KMN = standard item in quantity contract WVN = Standard item in maintenance contract WKN = item in value contract |
| Sales Phase TAN = Standard item TAD = Service in standard order BVNN= Free of charge item in cash sale KEN = standard item in consignment issue | Complaints REN = Returns standard item G2TX = Text Item in returns KLN = Free of charge item |
Important Controls of Sales Document Item category
§ Business item-If The Business item at item level can be different from that at header level (For
example- Sales data, Shipping data, Billing data).
§ Completion Rule- The rule for establishing when a quotation or contract is complete.
§ Special Stock indicator- For Ex- Consignment stock.
§ Billing plan type
§ Billing relevance- Order related, Delivery related, etc
§ Billing block
§ Schedule line allowed- Indicates whether you can create schedule line for the item.
§ Different Procedures- Incompletion, Partner determination and text determination.
§ Structure Scope for BOM
§ Pricing- Indicates whether the system automatically carries out pricing at the item level.
§ Automatic batch determination
Item Category Determination-
Sales Document type + Item category group + Usage + Item category of upper level item.
• A Sub Item is an item assigned to a higher- level item.
Schedule line category
Example of Sales document Type for Schedule Line Category
| Pre-sale phase AT = Inquiry schedule line BN = quotation Schedule line without MRP | Out Line agreement CV= scheduling agreement with consumption-based MRP |
| Sales Phase CP = Order schedule line with MRP CO = Consignment issue without availability check | Complaints DN = Schedule line in Returns without MRP DO =Consignment returns |
Schedule line category Controls-
§ Delivery Block
§ Movement type-
§ If the material relevant for delivery.
§ Transfer of requirements
§ Availability Check
§ Movement type in normal-PGI-601
§ Movement type in returns-651
• Schedule line cat. Determination-sales doc. item categories + MRP (MRP 1- Mat. master)
• A Purchase requisition for purchase order can be generated automatically from sales order.
• You can deactivate requirements of transfer (MRP) and availability check at schedule line level.
Bill Of Materials
• The item in BOM are controlled in sales order differently by Sales document Item Categories
• All Items in the bill of material (BOM) that you want to control in the sales document must be
flagged as relevant for sale. Hence you should create a BOM material with BOM usage 5 (SD), all
the items in bill of material will be automatically flagged as relevant to sales.
• The BOM appears in the sales document as a structure with main item and sub-items. The system
explodes the BOMs in the sales order by automatically generating sub-items for the components.
• Item category group in Material Master for main item –ERLA, Main item is priced and sub item is
not priced. Item category of main item- TAQ and Sub Item-TAE
• Item category group in Material Master for main item –LUMF, Main item is not priced and sub
item is priced. Item category of main item- TAP and Sub Item-TAN
Availability check
• An Availability check is carried out during sales order processing.
• An availability check occurs if-
§ The Material requires an availability check-in material master (Gen./Plant or MRP 3)
§ The Material availability checks in customizing-Delivery item Categories and Schedule line
categories.
• Availability is checked on material availability date. The material availability date is
determined from delivery scheduling, on this date enough material has to be available in time for
delivery to the customer for their requested date.
• In Customizing, you can configure which inward and outward movements are to be considered in
availability check.
• Communication between sales and distribution and Procurement is carried out via requirements. The
transfer of requirements type can be influence the availability check.
• Any agreements made with customer about deliveries also affect the result of the availability check.
Example-complete/partial deliveries.
• The indicator for controlling complete/partial deliveries is proposed from the customer master
records. The proposal for the item level comes from the customer-material information record, if
a customer and material agreement maintained there. These indicators can be changed manually
during order entry.
The availability check includes-
§ Current stock
§ Inward movement
§ Outward movement
Backorder processing
• An order item is backdated if
§ The quantity of an order item is not totally confirmed.
§ The request delivery date for an order item cannot be kept.
• There are two type of backorder processing
§ Manually- From list sales order processes them manually with reference to confirmation (Short
fall can be cleared).
§ Via Rescheduling- We can use the delivery priority (proposed from the customer master) and
make new order and confirmation date by scheduling.
Shipment or Delivery scheduling
• Different Times involved in delivery scheduling-
§ Pick/Pack Time
§ Loading Time
§ Transportation Lead Time
§ Transit Time
Backward scheduling-The customer request delivery date is used to calculate the material
availability date and transportation lead-time. The delivery must be created on the earlier of two
dates, if both date are after the order date, the customer’s requested delivery date can be confirmed.
Forward scheduling- If both of dates not come after order date, customer request delivery date
cannot be confirmed. Now system confirm the quantity on the basis of New Material availability
date, the earliest date at which the material is available in the warehouse.
§ Two schedule line are generated for the sale line item
The date of the first schedule line corresponds to the customer’s required delivery date and has no confirmed quantity.
The date of schedule line shows the confirmed delivery date and the confirmed quantity.
Assembly processing [Make to Order]
Make to Order without assembly processing-
§ Production Order is generated from planned order.
§ Make to order without assembly processing is characterized by the fact that materials are not
available in the warehouse but produced especially for a particular sales order.
§ An individual Customer requirement is generated from the sales order item and transferred to
material planning.
§ We can use material planning run to plan requirements, once this has been done production is
carried out. The system returns the confirmed quantity and delivery date from production order to
sales order.
§ After the product has been manufacture, goods receipt is posted in the sales order stock which is a
special stock, and which can only be used for a specific sales order.
Make to Order with assembly processing-
Ø Production Order is generated from sales order (No need material planning run).
Ø The individual components for the final product have already been produced; we only need to
assemble the component according to the customer’s requirement.
Complaints processing
• You can create The Returns or a Credit memo request or a Debit memo request with reference
to a sales order or a Billing document.
• A Billing Block is automatically assigned to the credit memo request or debit memo request. This
prevents immediate billing.
• The standard returns process in SAP has an order related Billing-Credit memo. Hence, credit memo
generation can be carried out independently of the inbound delivery of returned goods.
• You create the Invoice Correction request or credit/debit memo (without credit/debit memo
request) with reference to the Billing Document.
• An Invoice correction request is always created with reference to the incorrect billing
document. A credit memo item and a Debit memo item are created in the Invoice correction request
for every item in the incorrect billing Document. Change can only be carried out on the debit memo
items (debit memo is in Change mode, you can put Correct quantity here). It always delete in pair
Sales information system
• With Sales Information System (SIS), you can compress data from sales document to obtain
information.
• Sales information System (SIS) is a part of Logistics information systems (LIS).
• List fall in two categories- Online List and Work list.
§ Online List-
Provide Data for document, Display document for example-For a customer or a material, with a specific status. Allow you to check and change the documents.
§ Work List-
Display activities that need to be processed. Allow you to organize tasks into efficient work units. Work list allows you to select certain task in SD and to process them afterwards. You select the task according to area of responsibility on various selection criteria (such as date, organizational element or customer).
• The information system based on information structures. These are special statistic table, which
contain transactional data from different application. This data is constantly updated by system.
• Information structure contained three basic type of information:-
§ Characteristics,
§ Period Unit, and
§ Key Figures.
• Standard information structures for SD available in the R/3 systems are from S001 to S006, You Can
create your Own Information structure in Customizing using the name range S501 to S999.
• SIS contains Standard Analyses as well as Flexible Analyses to help us to evaluate statistical Data-
§ Standard Analysis:-
A variety of tools are available that allow you to analyze. These include, for example, Cumulative Curves, ABC analysis, time series, top-n evaluation, and comparison option.
The analysis is based on the information structure. First, you select the required data scope depending on the characteristics and period of information structure. This data is first displayed
in basic list, which can be drilled down to display different characteristics.
§ Flexible Analysis:-
Flexible analysis in LIS allow you to determine which data in which format is combined to create an individual report.
With Flexible Analysis you can combine characteristics and key figures from different information structure in one list.
Data flow
• Information is transferred from the preceding document to subsequent document.
• Describes the mapping of business process in sales by creation of sales document with reference of
preceding document, this enable document flows to be built up that describe business process.
• This allows you to copy partial quantities or all the item and quantities in reference document
directly by choosing Item selection. You can select certain items and can change quantities before
they are copied.
Document Flow
• A sales process is made up of the sequence of individual process steps, recorded as documents; this
process chain is stored in the document flow.
• You can view all the documents within the document flow in a list, you can branch to individual
documents by double clicking and to display of a document and then return to document flow.
• In status overview in document flow, you can quickly find detailed information about current status
of SD process.
• Document flow updated, when indicator “update doc. Flow” is set in Copying Control.
Special Business transaction
Rush sale
§ Sales from Plant Scenario.
§ Sales document type-RO
§ Delivery Type-LF
§ Standard item category- TAN [RO+NORM]
§ Billing Type-F2 [Delivery related]
§ Immediate Delivery switch Checked
§ Once the goods have been withdrawn from the warehouse, Picking and posting goods issue can
begin.
Cash Sale
§ Sales from Plant Scenario.
§ Sales document type-CS
§ Delivery Type-BV
§ Standard item category- BVN [CS+NORM]
§ Billing Type-BV [Order related]
§ Immediate Delivery switch Checked
§ Once the goods have been withdrawn from the warehouse, Picking and posting goods issue can begin.
Consignment processing
• In consignment processing, goods are delivered to thr customer but remain the property of company
in special consignment stock, however they actually used.
• An invoice is not created until the customer-withdrawn goods from consignment stock. Up Till that
point, the customer has the right to return consignment stock.
• Scenario
|
| Order | Delivery | Picking | Goods Issue | Billing |
| Consignment Fill Up(CF) | Yes | Yes | Yes | Yes | No |
| Consignment Issue (CI) | Yes | Yes | No | Yes | Yes |
| Consignment Pick Up (CP) | Yes | Yes(Inbound Delivry) | NO | Yes( PGR) | No |
| Consignment Returns (CONR) | Yes | Yes | No | Yes( PGR) | Yes |
Delivery free of charge and subsequent deliveries
§ Delivery free- of-charge [FD]. Item category is KLN [with FD + NORM]. KLN is not relevant for
pricing
§ Subsequent Delivery Free of charge [SDF] has reference mandatory to a preceding sales document.
Item category is KLN [with SDF + NORM].KLN is not relevant for pricing
Partner Determination
§ Customer master
§ Sales document header
§ Sales document item
§ Delivery Type
§ Shipment Type
§ Billing Header
§ Billing Item
§ Sales Activities
Incompleteness
• It presents the function of the incompleteness check. As part of editing sales documents, the system
can check whether all necessary information has been defined in document, if not document is
incomplete.
• Incompletion Log- The incompletion log is a list of containing all information that has been
defined as relevant for the sales document, that has not been processed during sales document
processing.
• This list can be called and processed manually or automatically on saving the sales document.
• We define these data fields in customizing for incompleteness Log.
• Incompleteness Log Function available for-
§ Sales- Header
§ Sales- Item
§ Sales- Schedule Line
§ Partner
§ Sales activities
§ Delivery header
§ Delivery Item
Outline Agreement
Two types- Contracts and Scheduling agreements
Scheduling agreement
• The Scheduling agreement contains fixed delivery dates and quantity and is valid for a certain
period of time.
• When you enter schedule line for the item in the scheduling agreement, the system adds up the
quantities that have already been entered and compare them both the target quantity and the
quantity already shipped. This give you an overview of all the open quantity, if the quantity in
schedule line exceeds the target quantity, system issue a warning message.
Contracts
Two Types-Quantity contract and value contract
§ The contract does not contain any schedule line, delivery quantities or delivery date. It is valid
for a certain period of time.
§ Release orders are created with reference to a contract. Schedule lines are created in the release order
when it is placed. You can choose materials directly or by exploding an assortment module (list of
valid materials-Master data for product).
§ You can create release order in any currency and the total value is updated in the currency of the
contract.
§ The value of release order is compared with value still open in the contract. You can define how the
system responds when this value is exceeded (sales document type)
§ A value contract defines that your customer agrees to purchase a fixed total value (target amount) of
goods and services during the defined period.
§ You can have partner function AA as optional sold to party and AW as optional ship to party in the
standard system.
§ You can maintain contract data at both header and item level in the sales document.
§ If you assign a contract profile to the sales document type, the system automatically determine default
values specific to the contract. These could be:
Rule for determining start and end of the contract Duration category Subsequent activities Cancellation procedure
Material Determination
• Material determination provides you with a tool for automatic exchange of material in sales
document.
• Material determination is carried out by condition technique. You do not need a material master
record for the material number that you are replacing.
• You can assign a substitution reason to every master record in material determination that defines
how the material should be determined.
• In standard system reason for substitution 0005 is for manual product selection and 0004/0006 is for
automatic product selection. If automatic product selection is used, the system may display (based
on customizing) the entered and substitute material as main and sub-items in sales order.
• Item data sales A contain information about material that was originally entered and reason for
substitution.
• You can use product attributes in material master and customer master records to exclude a
particular material from product list.
• You can re-run material determination when delivery is created. If material determination is rerunning,
the result of the substitution may change due to new availability situation.
• You can assign a material determination procedure to each sales document type.
Listing
• Make sure that your customer receives only specific materials. You enter these materials as a
material listing.
• The material listing is controlled by condition technique.
• You define in sales document type whether the system checks the material listing or not.
Exclusion
• Make sure that the customer does not receive certain materials. You enter these materials as a
material exclusion.
• The material exclusion also controlled by condition technique.
Free Goods
• Condition technique is used for free good determination.
• For free goods determination system uses-
§ Sales area
§ Document determination procedure (Sales document type)
§ Customer determination procedure (Customer master data)
• Free goods can be part of the order quantity not included in the invoice. This is called an inclusive
bonus quantity. The order goods and the free goods both involve the same material. The quantity
units of the free goods and ordered goods must be same.
• In inclusive bonus quantities, the extra goods are delivered free of charge and not typically his
included in the invoice. This can either be an additional quantity of the goods ordered or it can be
another article. The exclusive free goods appear in the sales document as an individual, free- ofcharge
item.
• The system re-reads the free goods master record in the sales order if the quantities in the main item
change or if the pricing date changes. The system then deletes the sub-items and re-creates them.
Any manual changes to the free goods quantity are lost. If pricing is re-run in the sales order, it
does not affect the free goods determination.
DELIVERY
• Each outbound delivery starts at a shipping point, continues along a route, and has ship to party as
the destination. These elements are header fields in the outbound delivery.
• The SAP system supports the following function within shipping processing:
§ Monitoring of deadlines for reference document due for shipping
§ Creation and processing of outbound deliveries
§ Monitoring of goods availability
§ Monitoring of capacity situation in the warehouse
§ Support for picking (With link to the warehouse management system)
§ Packing of outbound delivery
§ Printing and distribution of shipping documents
§ Processing of goods issue.
§ Controlling through overviews of
Outbound deliveries currently in process. Activities still to be performed. Possible bottlenecks
Logistics Execution
• The logistics process in a company that covers the entire process chain from the vendor through
the company warehouse, production facilities, and distribution centers to the customer.
• LE process includes-
§ The goods receipt process
§ The goods issue process
§ Internal warehouse process.
§ The transportation process
Organizational structure: logistics
Plant, Storage location, Warehouse number, Shipping point
• You can model the structure of a corporate group by using Client and Company codes. A client is
often synonymous with a corporate group, while a company code represents an independent
accounting unit. Company codes are legally independent from one another.
• The plant plays a central role in logistics. A plant is a production facility or a location that handles
material stock. It could be a collection of several locations in one general vicinity with material stock,
which are known as storage location. Stock is managed at the level of the storage location.
• Inventory valuation is done either at company code level or Plant level, however the stock is managed
at storage location level.
• Several storage locations within a plant can refer to the same warehouse number. As a result, they
form the warehouse complex from the point of view of inventory management
• The connection of organizational units in the warehouse to MM inventory management results from
the assignment of warehouse number to a combination of plant and storage location.
•The organizational unit of WM- warehouse number, storage type, picking are, staging area and
door. You can activate lean WM in customizing at the warehouse number.
• A shipping point is an independent organizational unit at a fixed location that process and monitor
outbound deliveries and goods issue. The shipping point is directly under the client level.
• An outbound delivery is processed from a single shipping point. The responsible shipping point is
determined in the order at item level.
• A shipping point may also be set as a goods receipt point, which means it can also be used for
inbound deliveries.
Structure Delivery document
• A delivery Document has two level- Header and Item. There is no schedule line. The reason is
each schedule line in the sales order can become an item in delivery document.
Delivery type control
§ Rule for determining storage location-(MALA, RETA, MARE)
§ Text, partner, output determination procedure
§ Route re-determination
§ Delivery split by warehouse number
§ Delivery split by partner
§ Automatic packing
§ Order reference
Delivery item category controls
§ Check zero quantity
§ Check minimum quantity
§ Check over delivery
§ Availability check control
§ Picking relevance
§ Determine storage location
§ Automatic batch determination
§ Packing control
§ Text determination procedure
Coping control-Delivery
• Update document flow
• In copying control table you specify:
§ Which sales and distribution document types can be copied to which delivery type?
§ Which item categories are copied from reference document?
• You can also specify
§ Under what condition data is copied from the order to the outbound delivery.
§ Under what condition several orders can be combined in an outbound delivery.
§ Which data to be transfer?
§ Whether the reference should be recorded in the document flow.
§ When you copy an order item to a delivery, the system copies the item category of the order item
to the delivery. An item category is not specified for order-independent items in the delivery (for
example- packing material), for deliveries without reference to an order (Delivery type LO). In
such case the item category determine take place on the basis of customizing setting which is
same as that of sales document item category.
Delivery item category det. - delivery document type + item category group + usages [DLN (standard item without order) - LO+NORM]
Route determination
• Route determination is carried out in sales order item and depends on:
§ The departure zone- shipping point (customizing)
§ Shipping condition-sales document type or sold to party
§ The transportation zone- ship to party (shipping tab)
§ The transportation group-material master (general/plant)
• In the order item, you can manually overwrite the route that is determined.
• You can re-determine the route in the outbound delivery based on the weight (weight group).
Whether the route is re-determined depends on the configuration of the delivery type.
Shipment or Delivery scheduling
• Different Times involved in delivery scheduling-
§ Pick/Pack Time
§ Loading Time
§ Transportation Time
§ Transit Time
• Shipping point calculate: - Pick/Pack Time, Loading Time
• Route calculate: - Transportation Time, Transit Time
Backward scheduling- system confirms the quantity of delivery on the basis of customer request
delivery date.
Forward scheduling- system confirms the quantity on the basis of New Material availability date.
Precise scheduling-the system calculates and displays the results of scheduling down to minute. If you
have maintained the working times of the shipping point, the system performs precise scheduling.
Daily scheduling: - the system uses days, hours, and minutes for calculation, but only displays the
resulting dates.
Route schedule: -
The route is used to determine the transportation lead-time and transit time. For
Transportation lead-time precise scheduling uses the working times of the shipping point; daily scheduling
uses the factory calendar of the shipping point. For the transit time both types of scheduling use the
factory calendar of the route to determine when route is used.
§ You can use the route schedule to organize outbound deliveries from a particular
shipping point to different ship to party.
§ The route schedule generally contains: Route, Departure date and time, list of ship to party
and itinerary (optional)
§ You can use route schedules in sales order, stock transfer and outbound deliveries.
§ In customizing, you define whether a route schedule should be assigned for each shipping
point, order type, purchasing doc. type (Delivering plant) and delivery type.
Picking location / storage location determination
MALA, RETA, MARE
• MALA- determination based on the shipping point, the delivering plant, and the storage
location (Material master-plant data/storage 1)
• RETA - Determination based on the delivering plant, situation, the storage condition.
• MARE - First MALA then RETA
Options for creating Outbound Deliveries
• Each outbound delivery starts at a shipping point, continues along a route, and has the ship to party
as the destination. These elements are header fields in outbound delivery.
• You can store delivery agreements using the indicators in the customer master record of sold to party
or in the customer material information.
• If the customer allow order to be combined, the R/3 system combines orders when creating the
delivery due list. For this the following characteristics should be same:
• Shipping point, Delivery due date, Ship to party, Incoterm, Route
• You can create an outbound delivery manually with or with out reference to a particular order.
However, if you create a delivery manually, you cannot deliver purchase order or other request.
Delivery due list
• The delivery due list is a work list of all operations requiring deliveries
Shipment
• If you use transportation functions, outbound deliveries are grouped together on the basis of
user-defined criteria in a document called the shipment document.
• Shipment function is optional. You can create a shipment after delivery creation or after PGI.
You can invoice the customer for shipment cost.
Out bound delivery monitor
• The outbound delivery monitor displays all deliveries that are still to be processed or that
have just been processed.
• You can use the outbound delivery monitor to execute important follow-on-functions in collective
processing in the background ( for example-transfer orde creation for picking, or posting of goods
issue).
Transfer order
• A transfer order is an instruction to move material from a source storage bin to a destination
storage bin within a warehouse complex.
• The transfer order include the information like-material number, quantity to be moved, source
and storage bin.
• With WM precise inventory management at the level of the storage bin is possible and used for
warehouse with random storage. This is not possible with lean WM and hence suitable for fixed
bin warehouse.
• You can Group Transfer order based on the warehouse number.
• Automatic or direct creation of transfer order if the systems determine output type WMTA at
the header level of outbound delivery when delivery is being created.
Batch Management Setting
• Material master-Plant/storage 1 view and purchasing view- Activate batch management.
• In customizing- delivery item category, sales item categories (automatic batch determination)
when delivering a sales order, this batch is copied to outbound delivery. Then you cannot
change batch in outbound delivery.
• If a batch has not been specified in the sales order, you can enter one in the picking overview
screen of the outbound delivery. You must specify a batch before goods issue.
• Batch split function is used if delivery quantities of an item are to be taken from different
batches. It can be done manually in batch split screen of delivery item or automatically using
automatic batch determination, for this customizing is done in delivery item category.
Serial number
• You can assign a unique serial number to each material. This is allows you to monitor goods
movement for individual materials.
• To use serial numbers, enter serial number profiles in the material master record (general/plant
and Plant data/storage-2).
• Serial number is specified in the delivery item or the order.
• You must specified serial number before posting goods issue.
Shipping Related Condition
• The outbound delivery can contain shipping-related condition at header level.
• You can use the SD pricing technique.
• Assign the pricing procedure to the delivery type
Delivery Split
• When you split a delivery, you create one or more new deliveries, called result and the reminder.
• When you call the delivery split, specify a split profile to determine the type of split. Split profiles are
define in customizing, and assign to delivery type.
§ Delivery split by warehouse number
§ Delivery split by partner
Packing
• The packing function is available in –Order (as packing proposal), In the inbound delivery, In the
outbound delivery, In the shipment document.
Packing Control
•You define packaging material type and packaging material group. Assign packaging material
type to packaging material group. Choose material type VERP for material master and maintain the
packaging material group in basic data 1 and sales: general/plant views. However, if this field has
not been maintain in the material master, this material can be packed in any packaging material depending
on the weight and volume.
• The system can generate a separate item in outbound delivery for each packaging material. For this-
§ You must set item category determination in customizing. In this context, table entries with
PACK usage are relevant.
§ The delivering plant must be determined using the plant determination rule in the
packaging material type or must be entered manually.
§ If you want to bill the customer for packaging material, item category should be determined as
DLN.
§ If you use returnable packaging material, you must create them in the material master with item
category group LEIH (item category TAL is determined). When goods issue is posted, the
material is transferred to special stock for the customer.
Goods Issue
• Posting goods issue involves an interface with FI as stock valuation changes.
• After goods issue has been posted, there is limited scope for changing the outbound delivery.
• The prerequisites for posting goods issue is that picking-relevant item are completely picked (transfer
order is confirmed). This means that the delivery quantity and the picked quantity in the outbound
delivery must be same.
• Goods issue can be posted by changing a single outbound delivery, by collective processing
function to select all deliveries for which goods issue is due to be posted, can also use the outbound
delivery monitor to do this and at the time of transfer order creation (to choosing adobe quantity 2)
• Any errors are logged when, for example, data such as the batch or serial number is missing or
when picking has not been carried out fully for these items. In this case, goods issue is not posted.
• The goods movement is controlled by “Movement type-601” (schedule line)
Effect after goods issue-
§ Reduce warehouse stock
§ Post the value change to the stock accounts in inventory accounting
§ Enter status information in the outbound delivery.
§ Reduce delivery requirement.
§ Is store in document flow and update status of preceding document
§ Create work list for billing.
Cancel Goods Issue
• If goods issue for an outbound delivery is canceled, the goods issue posting is reset. The system
copies the quantities and value from the original goods issue document and carry out an inventory
posting based on these quantities and values with a reversed +/- sign.
• If the outbound delivery has been fully or partially billed you must first cancel the billing document,
then you cancel goods issue.
• After goods issue has been canceled, the goods movement status of the outbound delivery is reset to
“Not yet started”. This allows you to further process the outbound delivery (Goods issue) as usual.
• For each movement type in inventory management, you must define a reversal movement type
in customizing. No additional settings are required for movement types used for goods issue posting.
Quality management
• You specify in the quality management view of the material master if a quality inspection is to be
carried out for the material. When the outbound delivery is created in SD, QM automatically creates
an inspection lot for the delivery items that are relevant for inspection. The usage decision represents
the completion of a QM inspection. Depending on the customer, or on the customer and the material
together, you can specify if the inspection log must be accepted before goods issue can be posted. You
initiate printing of a certificate of quality from output control of the outbound delivery at item level.
POD Settings
• You need to define which delivery item categories are relevant for the POD process. You also need
to define reason for deviation, and in the customer master data (sales area- shipping tab) specify
POD relevance.
• The system creates the billing document based on the correct (verified) quantity. The creation of a
billing document using the billing due list is blocked until proof of delivery has been confirmed.
Tab pages in delivery document
Overview: - Item overview, Picking, Loading, Transport, Status overview, Goods movement data.
VARIOUS COLUMNS IN PRICING PROCEDURE (RVAA01)
Step, Condition counter, Condition type, Description (condition, From, To, Manual, mandatory,
Statistic, Print (X-print of item level), Subtotal (reference level), Requirement, AltCty (Routine),
AltCBV (Routine), Account Key (ERL, ERS), account key- accruals
Step-
Condition counter-
§ Access number of the conditions within a step in the pricing procedure.
§ During automatic pricing, the system takes in to account, the sequence specified by the
counter.
PRICING
The term price book refers to a price determination strategy.
Condition records
§ Condition records based on key fields (combination of key fields called condition table)
§ In pricing condition records you can have a validity period, maintain scale and specify upper and
lower limit for manual changes. Manual changes only in this specified limit.
§ You can define unlimited number of levels in a scale.
§ You can do mass maintenance of conditions which means that condition records can now be
maintained across all condition type and condition tables.
§ New condition records can be created with the reference of existing condition records. Individual
condition records can be maintained manually.
§ New price function allows you to maintain multiple condition records simultaneously.
§ You can maintain long text in the condition records for pricing and agreements (rebates, sales deals
and promotions)
Pricing report
• To provide an overview of existing condition records. You can generate a list of conditions for
analysis.
• When you creating a new program for pricing report, you first decide in which views you want to
analyze condition records. You do this by selecting specific fields from the existing condition tables.
Depending on which fields are selected, the system will generate a list of tables, which contain at least
one of the selected field catalogues. From this list of tables, select which tables will appear in the
report.
Condition indexes
• You can create and use condition indexes to search for condition records that were created for a
variety of condition type and condition table. Before you can use the indexes that are delivered in
the standard version, you must first activate them in customizing for sales. However, if you create your
own indexes, the system automatically activates each new index when you generate it.
Condition table
• Condition table is a combination of fields, which form key for a condition record.
• Each condition table defines under access sequence.
• All fields, which are to be used for creating a condition table, must be contained in the field catalogue.
It is possible to add additional fields to this catalogue.
Release procedure
• You can allow a release procedure to be used when a condition table is created by selecting the with
release status checkbox. This adds the following fields to the condition table automatically.
KFRST-Release status as last key field KBSTAT- Processing status as a field of the variable data part (non key field) • “The release status is set indirectly by defining a processing status in customizing for pricing and
assigning a release status to the processing status”
• Different statuses are
Released Blocked Released for price simulation Released for planning and price simulation.
Access sequence
• An access sequence (search strategy) is defined for each condition type (except header and manual
condition type) in pricing procedure.
• Each access performed during pricing procedure, the access sequence is made using condition table.
• Access sequence is a search key for condition record, which made up of key fields.
Condition type
• The condition type determines the category of a condition and describes how the condition is used.
• The calculation type and scale base type can be controlled for each condition type.
• Conditions: - Price, discount/surcharges, freight, taxes
• Each condition type you can be set as an automatic surcharge, discount or either.
• As well as being determined automatically, condition can also be entered manually in the sales
document. You can prevent one condition type from being changed manually by making setting in
customizing.
Header condition (E.g. HM00, AMIW)
• Header conditions are valid for all items. These are automatically distributed among the items based
on net value. The basis for distributing the header conditions can be changed in the pricing procedure
by selecting the appropriate routine (e.g. weight, volumes) in the AltCBV field (alternative formula for
condition base value)
Special pricing functions
Group condition:-In customizing you can set a condition type to be a group condition. The condition
base value (e.g. weight) is then calculated as the sum of the individual items within one group. E.g.-
K029
Group condition with varying keys: -For group conditions with varying keys, item quantities are
accumulated for scale point determination purpose but the rate for each item is calculated from its
individual condition record. E.g.-K005
Condition update: -Value can be accumulated in the condition records and tested against limits. In this
way, you can set a maximum condition value, condition base value, or number of orders for a
condition. For this you must activate condition update switch in customizing for condition type. [Then
only these fields visible in condition records]
Condition supplements: -Condition supplements are group of conditions, which are accessed together
during pricing.
Condition exclusion
v Condition exclusion indicator can be set in either the condition type or the condition
records.
v Condition types to be compared are first placed in an exclusion group. During pricing, the
conditions which result in the best price (lowest charge or highest discount) are selected from
this group. All others are deactivated.
Special condition type
Manual pricing: - (E.g.-HM00, PN00)
Header condition type HM00 allows you to enter the order value manually. The new order value is then distributed proportional the items, taking into account the previous net value. Taxes are
determined again for each item.
Item condition type PN00 allows you to specify the net price for an item manually. The original conditions are deactivated.
Minimum price: - (E.g. AMIW, PMIN)
Header condition type (AMIW): -you may create a minimum value for each order using condition type AMIW. If the value in the order header is less than this minimum order value during pricing, the
system uses the minimum as the net order value automatically. The minimum order value is a
statistical condition. Condition type AMIW is a group condition and is divided among the different
items according to value.
Item condition type PMIN: -You can create a minimum price for a material using type PMIN. If the minimum price is not met during pricing, the system determines the difference using condition type
PMIN
Interval scale (PR02)- Scale pricing
• You can maintain condition records with interval scales if the condition type is set to scale type D in
customizing. Interval scales cannot use for group conditions.
Rounding Diff: -
• You can maintain a rounding unit in table T001R for each company code and currency.
Condition DIFF determines the difference amount. Condition type DIFF is a group condition and is
distributed among the different items according to value.
Customer Hierarchy Pricing
• Customer hierarchy are available in sales order management so that you can create flexible hierarchies
to reflect the structure of customer organization.
• Use Customer hierarchy during sales order processing and billing to determine pricing and running
statistics.
• A Customer hierarchy consists of nodes. Which are only valid for a certain period of time. They also
be moved. If a node is moved, the system automatically reassigns all related nodes and customer
master data.
• Settings-
Create master records for each node Assign node to each other Assign the customer master records to the relevant nodes.
• “With customer hierarchies, you can assign price or rebate agreements to a higher level node”
• Customer hierarchy accesses also provide clear and easy master data maintenance because the
different condition records for a condition type can be created together in the quick entry screen for
maintaining condition.
Discount and surcharges
• Pallet discount-KP00, incomplete pallet surcharge KP01, Mixed Pallet Discount KP02, Surcharges for
incomplete mixed pallets KP03
Statistical condition type
Ø Condition type VPRS-statistical condition used to retrieve the standard cost of the material has
condition category G. it accesses the material valuation segment of material master.
Ø Condition type SKTO- statistical condition used to retrieve the cash discount rate. It has condition
category E.
Update price
• Update prices on the condition screens is available at header and item level ( in sales order and billing)
: you can choose the pricing time in a dialog box.
Calculation type
• The calculation type for a condition type is defined in customizing. This calculation type determines
how prices or discounts and surcharges are calculated for a condition.
Pricing procedure
• The sequence in which the system accesses the conditions by using condition technique in
business document is determined in the pricing procedure.
• “Requirements, routine and formula provide a method to modify the standard pricing logic to meet
unique user requirement”
Pricing procedure determination-
• Sales Org.+ DC+ Division +Document pricing procedure + Customer pricing procedure
• Pricing determination is carried out using the condition technique.
Requirements (2-Item with pricing, 55- free goods pricing, 59- Free goods)
• You need to determine “how the system should use the conditions type” by specifying the
requirements.
• You are able to make access dependent on requirements to avoid unnecessary access, this reduce the
system load.
Reference level (Subtotal)
• Provides a method to specify a different basis to calculate the condition type and to group condition
for subtotal.
• Pricing procedure can contain any number of subtotals.
Condition type
• Are combined in the require sequence in pricing procedure.
• Mark a condition type in the pricing procedure as being:
§ A mandatory condition-PR00
§ A manually condition-HM00, PN00
§ For statistical purpose only. -VPRS, SKTO
Pricing type
• You can configure the pricing behavior in the pricing type.
Pricing types are: -
A. Copy pricing elements and update scale
B. Carry out new price
C. Copy manual pricing elements
G. Re-determined taxes
H. Re-determine freight
X, Y Reserved for customer
1-9 Reserved for customer
Tax determination
• The following factor play a role in tax determination
§ Business transaction- Domestic or export / import
§ Tax liability of ship to party
§ Tax liability of material
• You can assign a Rule, BLANK, A, B at the sales organization level to determine tax identification
number in the sales order and billing document.
Sales deal and promotion
• You can define a promotion or general marketing plan for a product line for a certain period of time.
You can then link this promotion with specific sales deals, which themselves linked to special
condition records. These condition records can be used for promotional pricing or discounts.
Rebate processing
Creating rebates agreement: -
• You may define rebates at as many levels as you require, similar to any pricing condition.
• The rebate agreement is created with a specific rebate agreement type. The feature of each
agreement type set in customizing (like condition table and its access sequence).
• Condition records are linked to the rebate agreement specifying the rebate rate and the accrual rate.
Processing rebates
• Rebates are different from other discounts in that they are based on the sales volume generated
by the customer within a specific period and are paid retrospectively.
• A settlement run creates the required credit memo request automatically.
• When the rebate- relevant billing documents are processed, accruals can be determined and posted to
financial accounting automatically, at the same time, the system updates the rebate basis and the
accrual amount on the rebate agreement sales volume screen.
• You can use the rebate credit memo to reverse these accruals. Accrual are cancelled automatically
when a credit memo is created.
• To function properly, rebate processing must be active for: -
§ Sales organization
§ The payer master
§ The billing document
Step rebate processing: -
§ Rebate processing begins by creating a rebate- relevant billing document.
§ The valid rebates condition type are determined by the pricing procedure using the rebate basis
subtotal.
§ Each rebate condition type has an assigned access sequence (set in customizing).
§ The system uses the access sequence to search for the valid rebate condition records. If valid
condition records are found, the accrual rate is read.
§ The accrual amount is calculated using the rebate basis.
§ The system posts an accrual to financial accounting and update accrual in rebate agreement same
time.
Retroactive rebate agreements
• Allow you to take into account billing documents created before the rebate agreement is created.
• The rebate basis for the billing documents created previously is accumulated and recorded in the
rebate agreement. The accrual amount is not automatically updated for billing documents created
previously. This amount must be entered manually.
Requirements
§ Requirement 24 - In the pricing procedure enforces that the rebate conditions are used only in billing
documents.
§ Requirement 25 – In the pricing procedure enforces that the rebate conditions are used only in rebate
relevant-billing documents.
BILLING
Billing Overview
• A Billing document has two levels-Header and Item
• When you create a billing document in account, the R/3 system carries out a debit posting on the
customer receivables account and a credit posting on the revenue account.
• An important part of billing is the interface to financial accounting. This allows documents to be
creating automatically in financial accounting and controlling when you create billing documents.
• The data, which can be changed before an accounting document created: Billing date, pricing,
account determination, output determination. After posting accounting you can change only
output data.
• You might not want the data to be transferred automatically for certain billing types. In that case you
can set a posting block for the billing type concerned.
• Inter-company billing- a sales organization can also sell products supplied by a plant that is assigned
to a different company code.
Controlling the Billing Process
Billing type control
• The billing type controls the whole document.
• The billing types are used to cover the full range of business transactions during billing processing.
• In billing type if “Text Delivery” is switched off, the corresponding SD header/item texts are taken
from the order. If the switch is on then it is taken from outbound delivery.
• Having following control.
§ Cancellation billing type
§ Number assignment (Internal)
§ Partners
§ Rebate
§ Posting block
§ Account determination
§ Invoice list type
§ Special features of FI interface
§ Basic function (Text, Output)
• In customizing, for item category (sales doc.), you determine whether billing is to be carried out with
reference to a delivery or an order. The system propose a relevant billing type from the underlying
sales document type. For example, in delivery related billing, a standard order (Order type OR) is
invoiced using billing type F2.
Invoice combination and Invoice Split
• It is possible to include both order related and delivery related items in the same billing document.
• If the header partner or data in the header field are not identical, the system will automatically perform
an invoice split.
Invoice list: -
• Each billing type to be included in an invoice list must assign an invoice list type.
• You also need to maintain the following master data:
§ Define a factory calendar, which specifies when invoice list are to be created.
§ Enter this factory calendar in the payer master record (Billing screen, invoice list schedule field).
§ Maintain condition record for condition type RL00 for the payer.
§ Create out put condition records for condition types LR00 and RD01.
Data flow and coping control
• You can automatically fill the reference number and allocation number fields in the accounting
document with numbers from SD documents. The reference number is in header of the accounting
document and is used for clearing. The allocation number is in the customer line item and is
used for sorting line numbers.
• In customizing for copy control in billing, you can define which numbered will be copied as reference
or allocations:
A. Purchase number
B. Sales order number
C. Delivery number
D. External delivery number
E. Billing document number
F. External delivery number if available, other wise delivery number.
• When the invoice list is created, the reference number from the invoice list overwrites the reference
number from the individual billing document.
• Copying requirement are ABAP routines. Before data is copied from the source document to target
document, specific requirements must be satisfied at each level of the document.
Special billing type
Billing type in complaint processing
Cancellation:
• You do not need to make an entry in coping control for billing cancellations.
• When you select cancellations, you branch to an overview screen containing the original billing
document as well as the cancellation. Before updating, you can compare both documents in order to
avoid any discrepancies during cancellation.
Credit and debit memos:
• You can create credit and debit memos either to credit or debit memo request (sales document), or, if
your company does not require a release procedure in case of complaints, directly with reference to a
billing document.
• We can also create credit and debit memo request without reference to a previous business transaction.
• You can control in customizing whether the system is to set a billing block automatically for a
credit or debit memo request.
• The responsible employee can:
§ Release the credit or debit memo request after review (by removing billing block). The
employee can decide the amount or quantity to be credited or debited.
§ Reject item in the credit or debit memo request and enter a reason for rejection.
Invoice correction request:
• The invoice correction request represents a combination of credit and debit memo request.
• The invoice correction request must be credited with reference to the corresponding billing document
(no reference to order or inquiry).
• The credit memo item cannot be changed. The corresponding debit memo item, however, can be
updated according to new characteristics (E.g. new pricing, change in quantity)
• You can delete the credit and debit memos in pairs (unchanged pairs of items can be deleted all at once
in this way).
Returns
• Returns are processed in the same way as credit memo request.
Pro forma invoice
• You can create with reference to order or deliveries
• This is generally used for export transaction
• Do not need PGI before creating delivery related Pro forma invoice.
• You can create as many pro forma invoices as required, since the billing status in the reference
document is not updated.
• Data from pro forma invoice is not transfer to accounting
Cash Sale
• Order related billing, (BV) the order and delivery are created in one step, although you receive a
document for each other.
• The goods issue is posted at a later time as a separate transaction so the customer does not have to
wait.
• Order type CS is used for cash sales. It has its own output type RD03 which allows you to print an
invoice from the order.
• No output determination, as this has already been carried out in order.
• No new price determination, as the pricing should not differ from the printed invoice.
• Posting in financial accounting is made to a cash settlement account, not to the customer.
• Billing type SV is used for cancellations in cash sales.
Special business transactions
Billing plan-Periodic billing and Milestone Billing
• You can assign billing plan at header level {sales doc. Type} or at item level {sales item category with
billing relevance 1
• Periodic Billing
§ Periodic billing is used to spread billing of full amount over several dates within billing plan.
Generally use in rental and in service contract.
• Milestone billing: -
§ In the SAP R/3 System, milestone is stored in a network along with planned and actual project
data.
§ Milestone are assigned to the billing plan dates and blocked for billing until the milestone is
confirmed as completed.
§ The date proposal is used exclusively for milestone billing. It determines a sequence of dates
that are used as the reference for date determination during order processing.
Down payment processing in SD
• Down payments are already created in the sales order. “ At the corresponding due date, a down
payment request (Billing Document) is sent to customer.”
• The down payment agreement can be assigned directly to an item, or it can be defined as valid for all
items in the order.
• As soon as billing date for down payment has been reached the system created a down payment
invoice and sent it to the customer.
• Tax is determined and displayed automatically when the down payment request is created.
• The down payment request (SD) is automatically posted in financial accounting as a down
payment request (Posted as a noted item). The item ha special general ledger (G/L) indicator F,
which insures that posting, is statistical. Posting is made to a different reconciliation account,
which allows you to differentiate down payment requests from other receivables. Billing type FAZ is
used for creating the down payment request.
Installment Payments
• Installment plans allow the customer to pay in installments. Only one billing document is created for
all of the installment payments. The printed invoice is created on the basis of this billing document and
includes a list of individual payment dates and exact amounts. Each installment payment creates an
accounts receivable line posting in FI.
• You must define installment payment terms in customizing (number and amount of the installment
in percentage and payment terms).
Account determination
• Account determination is carried out using the condition technique.
• The slandered account determination procedure is KOFI00, which has the standard condition types as
KOFI and KOFK.
• Criteria for account determination-
§ Chart of account
§ Sales organization
§ Account assignment group for payer
(Customer in to different group, such as domestic and overseas.)
§ Account assignment group for materials
§ Account key
(Account keys are assigned to condition types in the pricing procedure, so that conditions such as
freight condition, can be posted to special freight revenue accounts)
SD/FI interface
• Sales organization to company code assignment
• Account determination
• Copy control.
Condition technique is used for
§ Pricing
§ Account determination
§ Material determination
§ Listing
§ Exclusion
§ Free goods determination
§ Tax determination
§ Text determination
§ Output determination
TAB PAGES FOE BILLING DOCUMENT
Header - Header, Header Partner, Conditions, Foreign Trade/customs, Head text, Global trade.
Item – Item detail, Item, Partner, Conditions, Foreign Trade/ customs, Item text, PO date, global
trade.
Malikimtiyaz321@gmail.com
