Basics of SAP SD MODULE

 

SAP Organisational Structure Configration – SD Module

Mandatory : To check the system year and date before log on to SAP

Trans Code: OMSY (Material Management view on Company codes)

1.Check the period and year for your company code is set as current month and year

Define : Company Code

Credit Controlling Area:Always HO will be the credit control area

Buss.Area

Plant:

Division

Sales Organisation

Dist Channel

Storage Location

Organisation Configuration Settings

Step 1. IMG Screen….>

--Enterprise Structure…)

----Definition……)

-------Financial Accounting (FICO Settings…)

------Define Company Code : INFY, Information Systems,CTRY:In,

Language: En, Currency: INR

------Define Credit Control Area: INFY,Currency: INR, Update: 000018,

FY Variant:K4(Calendar year 4 spec.periods)

------Copy,delete, Check company code: Copy from C Cod:1000 to New

Company code created.(PCIL) ( Tran Code:EC01)

------ Edit Company Code Data: Posit Comp.Code (change View screen)

Click Details View(Ctrl+Shift+F2)

Change Company name and other details.

Save and Enter……

------ Define Buss.Area: New Entries (PCIL-Buss Area PCIL-Blore)

-------Controlling Settings…)

-------Maintain Ctrlg Area: Maintain Ctrlg Area:New Entries

The above screen shows the field entries for maintain Controlling Area.

-------Logistics-General Settings…)

------Define Copy,delete, Check Plant:

Define Plant:New Entries, Plant:PC01

Factory Calendar: GB

Country Code: IN

------Define Division: New Entries,Division: (CH-Channel-Micro)

-------Sales and Distribution ( S & D Settings…)

-----Define Sales Orgn: New Entries,

Sales Orgn: (PCIL-SO for PCIL-Blore)

Country Code: In

-----Define Copy, Delete, Check Distr Chanel: New Entries

Dist.Channel: IM-Disti.PCIL

-------Materials Management ( M & M Settings…)

------Maintain Strg.Loc: Enter Plant: PC01

New Entries: Storg Loc: PBLR-Stor Loc-PCIL, Blore

-------Logistics Execution Settings….

-----Define Copy, Delete, Check Shpng Point: New Entries

Shpng Point.(SBLR)

Cntry Code:In Fctry clndr:GB

The below screen displays the fields to be entered

------Maintain Trns.Plng Point:new Entries, TPPT:PCIL

Cmpy Code:PCIL

Cntry Code:In

End of Definition of Company Code……………….

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What are the differences between cash sales and rush order?

1) Cash sale : in this delivery automatically happen when you save the sales order.  After that you have to give an invoice to the customer.

2) Rush order. Here also delivery automatically happen when you save the sales order. But the difference is you can send invoice after some time but the delivery should happen immediately.

If you goto any super market first, you pick up the item and then pay the bill and then you will get the bill, this process is cash sales.

Cash sales is order related billing whereas RO is delivery related.

Cash sales is not relevant for availability check as you will be picking the goods whereas RO is relevant for availability check.

Cash sales is also not relevant for credit management whereas RO is relevant credit management.

Cash sales uses RD03 as output which immediately prints the invoice whereas RO uses standard output RD00.

Cash sales has one time customer account group where as RO normally doesn't.

For cash sales order type is BV or CS and for RO it is RO

Cash sales triggers petty cash a/c where as in RO customers account is debited.

Delivery and settlement will be done immediately in cash sales where as in RO only delivery will be done immediatrly.

Rush Order/Cash Sales –

Rush orders and Cash sales are sales document types that are used in the sales from plant process or when the customer needs to pick their goods immediately from the warehouse.

In the sales document type, the following changes have to be made for rush order/cash sales –

a. order type – RO/CS

b. shipping conditions – immediately

c. immediate delivery – X

d. lead time in days – not to be specified

e. delivery type – LF/BV

f. billing type – F2/BV

g. item category – TAN/BVN 

h. schedule line category – CP/CP

In case of rush orders and cash sales once the goods have been withdrawn from the warehouse, picking and posting goods issue can begin.

In case of rush orders, when you create the billing documents the system prints the invoice papers and sends them to the customer.

But in case of cash sales, an order related billing index is generated automatically. This updates the billing due list. Billing type BV is created, while the billing due list is being processed and the system does not print invoices during billing for a cash sale. 

In cash sales when you save the order, the system automatically generates a cash receipt that can be given to the customer as an invoice and the goods are picked up from the warehouse immediately by the customer. You control the output with output type RD03, contained in the output determination procedure for order type CS.

=========================================

Sales Organization :

Responsible for:

• Distribution of goods and services
• Negotiating Sales Conditions
• Product Liability and rights of recourse
• A sales organization is uniquely assigned to a company code
• Master data’s are separately maintained for a sales organization
• All items in the Sales and Distribution document belong to a sales organization

Distribution Channel:

Means through which products and services reach the customer

A distribution channel:

• Defines responsibilities
• Helps in achieve flexible pricing
• Differentiate Sales statistics

Division:

• A division is used to group products and services.

• A division represents a product line.

Sales Area:

A Sales area is a combination of

• Sales organization
• Distribution Channel
• Division

Each Sales and distribution document is assigned exactly to one sales area.

A sales area can belong to only one company code.

Sales Organization

Distribution Channel

Division

Sales Area

Plant and Storage Location:

• A Plant is a location where stock is maintained

• Plant and storage location are used by all logistic area of R/3 System

• A Plant is uniquely assigned to a company code

Shipping point:

• Shipping point is the highest level of organizational unit in shipping

• Each outbound delivery is processed by one shipping point

• Shipping points are assigned to a plant

• More than one shipping point can be assigned to a plant

Sales and Distribution is SAP begins with establishing customer relationship and ends with invoicing for the delivery of goods or service provided to the customer .

A Standard sales transaction has the following flow:

Inquiry  --> Quotation

 

Order

Delivery

Billing

The customer order management cycle begins with pre-sales activities.

A standard order in SAP contains:

• Customer and material info
• Pricing conditions
• Delivery dates and quantities
• Shipping info
• Billing Info

Inventory sourcing in SAP is taken care by

• Availability check

Shipping in SAP supports

• Outbound delivery creation
• Picking
• Packing
• Post Goods Issue

Billing in SAP supports

• Creating invoices for products and services

• Creating credit and debit memo

• Cancel previously posted billing documents

• Automatically transferring billing documents to accounting

When a billing document is created for a sales order we

• Credit the sales revenue account

• Debit the customer receivables account

Sales Document

A sales document is grouped into three structures

• Header

• Item

• Schedule Line

Outbound delivery

A delivery document is grouped into two structures

• Header

• Item

Several orders can be grouped into same outbound delivery if they have same

• Shipping point

• Delivery date

• Ship-to- address

Picking

• A transfer order is created for an outbound delivery

• A transfer order is created for a warehouse number

Post Goods Issue

When PGI is done the system

• Updates the quantity in inventory management and delivery requirements in materials planning

• Generates additional documents for accounting

• Adds the delivery to the billing due list

• Updates status in sales documents

Billing

We can group deliveries into single billing document if the deliveries have same

• Billing date

• Payer

• Destination Country

The effects of billing are

• Debit on the customer receivables account and credit on sales revenue account is created

• Sales information system

• Sales statistics is updated

Master data in SAP

SAP SD has got the following main masters:

• Customer master

• Material master

• Condition master

• Output master

• Customer material information master

Customer master

General Data

Sales Area Data

Company Code data

Address Order Accounting

Control data Shipping Payment

Payment terms Billing Correspondence

Marketing Partner functions Insurance

Unloading points

Export data

Contact persons

The chart above shows detail on three main areas of customer master and the tab pages found under each area.

Material Master is maintained in different views and important views of sales and distribution are

• Basic data 1

• Sales Org 1

• Sales Org 2

• Sales : Gen/Plant

• Foreign Trade

• Sales text

Sales document in Sales and distribution mainly controls:

• Number range

• Item No increment

• Reference mandatory

• Item division

• Read info record

• Document pricing procedure

• Incomplete messages

• Alternative sales documents

• Delivery block

• Billing block

• Immediate delivery

• Delivery type

• Billing type

• Proposed delivery date

• Lead time for delivery

• Proposed pricing date

Plant determination in Sales and distribution:

To determine the plant in an order the system checks the master in the following order:

a) Customer material info. record of the sold-to –party

b) Customer master record of the ship-to-party

c) Material master record of the material

Shipping point determination

The following rule is used in determining shipping point in a sales order :

Plant + Shipping condition (Sold-to-Party) + Loading group Shipping point

Maintained in Material master Gen: Plant data

Route determination

Route determined using the following rule in Sales and Distribution (SAP)

Departure Zone of Shipping Point

+

Shipping condition (Sold-to-Party)

+

Transportation Group (Material master)

+

Transportation Zone (Ship-to-Party)

Route

Delivery scheduling:

As name denotes delivery scheduling is scheduling delivery for an order and it carries the following important dates:

• Material availability date
• Transportation planning date
• Loading date
• Goods Issue date
• Delivery date

Availability Check in SAP:

• Availability check is carried out at item level for a plant

• Availability check is done on the material availability date

• If material availability date is in the past the forward scheduling is done, if not backward scheduling is done.

Item category determination in the order:

Item category denotes the category to which the item belongs and the following rule is used for determination of item category. Item category controls the way in which item behaves in a sales document.

Sales document type

+

Item category group (Material master)

+

Item usage

+

Item category of higher level item

Item category of the item

Item category in a sales document mainly controls the following

• Relevance for billing of an item

• Billing block
• Pricing relevance
• Business data relevance item
• Schedule line allowed
• Item relevant for delivery
• Returns
• Determine cost
• Credit active
• Incompletion procedure
• Partner determination procedure
• Structure scope (relevant for bill of material explosion)
• Value contract material
• Contract release control

Schedule line category:

Every item which has a delivery will have a schedule line and the schedule line category is determined with the following rule:

Item category + MRP type(Material Master) Schedule line category

Schedule line category mainly controls:

• Delivery Block
• Movement type
• Item relevant for delivery
• Req/Assembly
• Availability
• Product Allocation

Copy Control:

Copy control is normally set for

• Header
• Item
• Schedule line levels

To control copying procedure we have

• Data transfer routines
• Copying requirements
• Switches

Pricing Procedure determination:

Pricing is an important component in SAP-SD. Once an order is entered taking into consideration some major factors, the pricing procedure for the particular order is determined.

The major factors taken into consideration for pricing procedure determination is:

Sales area

+

Customer Pricing procedure(Customer Master –Sales area data)

+

Document Pricing Procedure(Sales Document Type)

Pricing Procedure

What are the components of pricing procedure?

How is that a person should work on Pricing Procedure?

To start with first

Define a Condition table:

What is a condition table?

A table where the key fields are data combinations for which messages are triggered (and offered for processing).

For each data combination, there is a condition record in the table. The data part contains the actual message.

As mentioned above a condition table is a table which carries key fields for picking up the prices.

Define Access Sequences

The access sequence is a search strategy which the SAP System uses to search for condition records valid for a condition type.

For example, you can define for a price that the SAP System first searches for a customer-specific price and then for a price list price.

Recommendation

· If you define your own access sequences, the key should start with the letter Z since SAP reserves this letter for the standard system.

· Do not change access sequences contained in the standard SAP R/3 System.

Actions

1. Check to what extent you can use the access sequences contained in the standard SAP R/3 System.

2. Create new access sequences by copying a similar access sequence and changing it according to your needs. Specify an alphanumeric key which may have up to 4 digits and a textual description.

3. Maintain the accesses for the access sequence by specifying the condition tables in the desired sequence. With the sequence, you define the priority of the accesses. You can display combinations of key fields using possible entries.

4. Generating the accesses is no longer necessary as of 3.0, as this is carried out automatically. You can generate the accesses manually, if required, by choosing "Utilities".

Example

In pricing, you use a customer-material discount. The condition records you create are based on customer data from the document header and material data from each document item. The discount is only valid for 2% of your customers, however. Normally, this would mean that the system would needlessly search through every available item for 98% of your customers. In this case, pre step would improve system performance.

Define Condition Type

A characteristic of a condition. For example, in pricing, different condition types are used to distinguish between a discount that refers to a net price and a discount that refers to a gross price.

Price elements are represented in the SAP system by condition types. Price elements can be, for example, prices, surcharges, discounts, taxes or, freight, and are stored in the system in condition records.

You can, for example, define whether a discount is calculated as a percentage or a fixed amount using the condition type.

You specify an access sequence in every condition type. Thus, you define which fields the SAP system checks when searching for a valid condition record.

Note

• The pricing procedure groups all condition types together which the SAP system is to automatically take into account during pricing for a business transaction (see the section "Define and assign pricing procedures").

Remember that you can only specify manually in a document those condition types which are contained in the pricing procedure.

• You can change the outcome of pricing in the sales document manually. You can limit options for changing a condition type in this IMG step.

Recommendation

• If you define your own condition types, the key should start with the letter Z since SAP reserves these letters for that purpose in the standard system.

• Do not change the condition types which are contained in the standard SAP R/3 System.

Actions

1. Check to what extent you can use the condition types contained in the standard SAP R/3 System.

2. Create new condition types by copying a similar conditions type and changing it according to your requirements. One reason for creating a new condition type is you may require a calculation rule for a discount which is not available in the standard system.

Specify an alphanumeric key which can have up to 4 digits, and a textual description.

Specify an access sequence for the condition types. You do not need to specify an access sequence for header conditions.

3. Maintain the detail screen of the condition type.
You can also assign a reference condition type if the condition types you are working with are similar. Then you will only have to maintain condition records for the reference condition type.

In addition, you can define the upper and lower limits for the value of a condition at condition type level. This way, you limit the amounts or the scale values in the corresponding condition records.

Define Pricing Procedures

The pricing procedure defines the conditions permitted for a document and the sequence in which the system takes these conditions into account during pricing.

A standard pricing procedure is defined in the standard SAP system.  It contains conditions most commonly used.  These include material prices, discounts, and surcharges, such as freight, or tax.

SAP Recommendation

· Define your own pricing procedures which contain only those condition types which you use. Otherwise, the system makes un neccessary accesses to conditions.

· Do not change the pricing procedures contained in the standard SAP R/3 System.

Actions

1. Create new pricing procedures by copying a similar pricing procedure.

• Specify a key with up to 6 characters and a description.

• For a procedure, specify the condition types in the sequence of their usage.

Maintain the lines of the pricing procedure

2. Afterwards define the customer determination procedures for determining the procedure.

3. Define the document pricing procedures for determining the procedure.

4. Assign the procedure to the sales document types and billing types.

5. To determine the procedure, define the allowed combinations of:

• Sales area
• Customer pricing procedure
• Document pricing procedure
• Pricing procedure

Shipping:

The basis for shipping is delivery.

Delivery document controls the following in deliveries

• Number range
• Item no increment
• Storage location rule
• Route determination
• Text determination
• Delivery split
• Gen. packing material / item
• Order required

Delivery item category controls:

• Check min delivery
• Availability check
• Relevant for picking
• Storage location required
• Determine storage location
• Automatic batch determination
• Text determination procedure

Billing:

Billing is the last phase in the SD process .Billing is the phase where the major integration of SD and FI Module happens.

Billing document has got the following structure:

• Header
• Item

Billing documents mainly control:

• No. range
• Posting block (Controls posting to accounting)
• Relevant for rebate
• Account determination procedure
• Account determination recon account
• Account determination pay.cards
• Output determination procedure

Account Determination in SAP

Account determination in SAP-SD happens with the following rule

Sales Organization

*

Chart of Accounts

*

Account assignment group –Customer

*

Account assignment group-Material

*

Account Key

G/L account on which the postings has to happen.