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Basic Rules in SD Configuration - ERP Operations - SCN Wiki

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ERP Operations / / Essential Configuration in SD

Basic Rules in SD Configuration

Added by Prashanth Goud, last edited by Jyoti Prakash on Nov 09, 2012

Purpose
This w iki page w ill discuss the basic rule / principle / information pertaining to SAP Sales and Distribution.

Organizational structure
Sales Organization
Its 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:
This is the means through w hich products and services reach the customer. So, its responsible for: 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.

Plant and Storage Location:

A Plant is a location w here 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

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Process
Sales and Distribution is SAP begins w ith establishing customer relationship and ends w ith invoicing for the delivery of goods or service provided to the customer. A standard process flow for sales transaction has the follow ing flow : 1. Inquiry 2. Quotation 3. Sales Order 4. Delivery Document 5. Invoice The customer order management cycle begins w ith pre-sales activities.

Sales Order
A standard sales order in SAP contains: Customer & its partners details Material information Pricing conditions Delivery dates and quantities Shipping/Transportation information Billing information Accounting Interface information Required Output Details Document Status

Inventory sourcing at Sales Order & Delivery

It is handled through: Availability check

Shipping
SAP supports follow ing shipping process: Outbound delivery creation Picking Packing Post Goods Issue

Billing
SAP supports follow ing billing process: 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 w e Credit the sales revenue account Debit the customer receivables account

Sales Documents - Structure & related information

Sales Order
A sales order is grouped into three structures 1. Header 2. Item 3. Schedule Line

Outbound delivery
A delivery document is grouped into tw o structures 1. Header 2. Item In standard system, several orders can be grouped into single outbound delivery, provided the referenced orders have same

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1. Shipping point 2. Delivery date 3. Ship-to address

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

Picking List or Transfer Order

created for an outbound delivery created for a w arehouse 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
A billing document is grouped into tw o structures 1. Header 2. Item In standard system, several orders/deliveries can be grouped into single billing document, provided the orders/deliveries have same 1. Billing date 2. Payer 3. Billing address The effects of billing are Debit on the customer receivables account Credit on sales revenue account System updates - Sales information system - Sales statistics

Master data in SAP

In sales and distribution, the follow ing main master dates: 1. Customer master 2. Material master 3. Condition master 4. Output master 5. Customer material information master

Customer master
The master data for customer is maintain in 3 major area 1. General Data 2. Company Code data 3. Sales Area Data Follow ing is the table w hich show s detail on three main areas of customer master and the tab pages & details found under each area: General Data Address Sales Area Data Sales Details Com pany Code data Account info like Reconciliation account Control data like Transport.zone, tax info Payment transaction like bank details, payment cards Marketing Export data Contact Person details Billing details like payment term, account details Partner functions Shipping details Payment like Terms of payment, auto payment details Billing Correspondence like Dunning Procedure, payment notice Insurance

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Material Master
It is maintained in different view s. Follow ing are the important view s maintained for material master in sales and distribution: View s 1. Basic data 1 Key Fields Base Unit of Measure Material Group Gross Weight & its unit Net Weight Volume & its unit Size/dimensions Languages Maintained 2. Sales Org 1 Sales unit Division Tax Data Min.order qty Min. dely qty Rounding Profile 3. Sales Org 2 Matl statistics grp Material pricing grp Acct assignment grp Item category group Product hierarchy Material groups Product attributes 4. Sales : Gen/Plant Availability check Batch Transportation Group Loading Group Matl Grp Pack.Matls Profit Center Negative Stock Serial Number

5. Foreign Trade Export

Comm./imp. code no. Export/import group Control code Legal Control

6. Sales text 7. Accounting 1 Valuation Class Material Price Determination Price Control & Moving price or Standard price

Sales Document Type

Sales document type like OR 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 Subsequent Delivery type Subsequent Billing type Proposed delivery date Lead time for delivery Proposed pricing date

Plant Determination in sales order

To determine the plant in a sales order the system checks the master in the follow ing sequence: Sequence Master Data

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01 02 03 Customer material info. record of the sold-to Party Customer master record of the Ship-to Party Material master record of the material

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

Shipping Point
The follow ing is combination w ith w hich shipping point gets determined automatically in a sales order: Shipping point = Plant + Shipping Condition (Sold-to-Party) + Loading Group (Material master Gen: Plant data)

Route
Route automatically gets determined in sales order based on follow ing combination: Route = Departure Zone (from Shipping Point) + Shipping Condition (from Sold-to-Party) + Transportation Group (from Material master) + Transportation Zone (from Ship-to-Party)

Delivery Scheduling
As name denotes delivery scheduling is scheduling delivery for an order, w hich carries out through the follow ing important dates: 1. Material availability date 2. Transportation planning date 3. Loading date 4. Goods Issue date 5. Delivery date

Availability Check
Follow ing are features of availability check: It is carried out at item level for a plant It is done on the material availability date If material availability date is in the past the forw ard scheduling is done, if not backw ard scheduling is done.

Item Category
Item category controls behavior of material in sales order. In a sales document, it mainly controls the follow ing: Relevance for billing of an item Billing block Pricing relevance Business data relevance item Schedule line allow ed 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 The follow ing is combination by w hich Item Category automatically gets determined in sales order. Item Category = Sales Docum ent Type + Item Category Group {Material master) + Item Usage (if any) + Item Category of Higher Level Item (if any)

Schedule Line Category

Every item w hich has a delivery w ill have a schedule line and the schedule line category is determined w ith the follow ing rule: Schedule Line Category = Item category + MRP Type (Material Master) It mainly controls:

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

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Copy Control
It is normally set for Header Item Schedule line levels To control copying procedure w e have Data transfer routines Copying requirements Sw itches Types of copying control: S. No 1. 2. 3. 4. 5. 6. Transaction Code VTAA VTLA VTFA VTLF VTAF VTFF Source Docum ent Sales Order Sales Order Sales Order Delivery Document Billing Document Billing Document Target Docum ent Sales Order Delivery Document Billing Document Billing Document Sales Order Billing Document

Pricing Procedure
Pricing is an important component in SAP Sales and Distribution. Once an order is entered taking into consideration some major factors, the pricing procedure for the particular order is determined. The major factors or combination is taken into consideration for pricing procedure determination in sales order: Pricing Procedure Determination = Sales Area (Sales Organization + Distribution Channel + Division) + Custom er Pricing Procedure (Customer Master-Sales area data) + Docum ent Pricing Procedure (Sales Document Type)

Shipping
The basis for shipping is delivery. Delivery document controls the follow ing in deliveries Number range Item no increment Storage location rule Route determination Text determination Delivery split Gen. packing material / item Order required Item category for delivery controls: Check minimum delivery Availability check Relevant for picking Storage location required Determine storage location Automatic batch determination Text determination procedure Packing control Stk determ.rule

Billing
Billing is sales process is of the critical integration point betw een SD and FI Module. It has got the follow ing structure:

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1. Header 2. Item It mainly controls: No. range Posting block (to controls posting of invoice to accounting) Relevance for rebate Account determination procedure Account determination recon account Account determination pay.cards Output determination procedure Cancellation billing type

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

Account Determination
Automatic account determination in SAP Sales and Distribution sales order & billing documents take place based on follow ing combination Account Determ ination = Sales Organization + Chart of Accounts + Account Assignm ent Group for Custom er + Account Assignm ent Group for Material + Account Key + G/L Account on which the postings will take place

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