Basic Rules in SD Configuration - ERP Operations - SCN Wiki

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

ERP Operations /� / Essential Configuration in SD

Basic Rules in SD Configuration

Purpose

This wiki page will discuss the basic rule / principle / information pertaining to SAP Sales and Distribution.

Organizational structure

Sales Organization

It’s 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 which products and services reach the customer. So, it’s 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 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

Process

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 process flow for sales transaction has the following flow:

Inquiry1.

Quotation2.

Sales Order3.

Basic Rules in SD Configuration - ERP Operations - SCN Wiki http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

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Delivery Document4.

Invoice5.

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

Sales Order

A standard sales order in SAP contains:

Customer & its partner’s 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 following shipping process:

Outbound delivery creation

Picking

Packing

Post Goods Issue

Billing

SAP supports following 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 we

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

Header1.

Item2.

Schedule Line3.

Outbound delivery

A delivery document is grouped into two structures

Header1.

Item2.

In standard system, several orders can be grouped into single outbound delivery, provided the referenced orders have same

Shipping point1.

Delivery date2.

Ship-to address3.

Picking List or Transfer Order

created for an outbound delivery

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


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Updates status in sales documents

Billing

A billing document is grouped into two structures

Header1.

Item2.

In standard system, several orders/deliveries can be grouped into single billing document, provided the orders/deliveries have same

Billing date1.

Payer2.

Billing address3.

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 following main master dates:

Customer master1.

Material master2.

Condition master3.

Output master4.

Customer material information master5.

Customer master

The master data for customer is maintain in 3 major area

General Data1.

Company Code data2.

Sales Area Data3.

Following is the table which shows detail on three main areas of customer master and the tab pages & details found under each area:

General Data Sales Area Data Company Code data

Address Sales Details Account info

like Reconciliation account

Control data

like Transport.zone, tax info

Shipping details Payment

like Terms of payment, auto payment details

Payment transaction

like bank details, payment cards

Billing details

like payment term, account details

Billing Correspondence

like Dunning Procedure, payment notice

Marketing Partner functions Insurance

Export data

Contact Person details

Material Master

It is maintained in different views. Following are the important views maintained for material master in sales and distribution:

Views Key Fields

1. Basic data 1 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


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Views Key Fields

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 following sequence:

Sequence Master Data

01 Customer material info. record of the sold-to Party

02 Customer master record of the Ship-to Party

03 Material master record of the material

Shipping Point

The following is combination with which 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 following 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, which carries out through the following important dates:

Material availability date1.

Transportation planning date2.


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Loading date3.

Goods Issue date4.

Delivery date5.

Availability Check

Following 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 forward scheduling is done, if not backward scheduling is done.

Item Category

Item category controls behavior of material in sales order. In a sales document, it 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

The following is combination by which Item Category automatically gets determined in sales order.

Item Category = Sales Document Type + Item Category Group

{Material master)

+ Item Usage

(if any)

+ Item Category of Higher Level Item

(if any)

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:

Schedule Line Category = Item category + MRP Type

(Material Master)

It mainly controls:

Delivery Block

Movement type

Item relevant for delivery

Req/Assembly

Availability

Product Allocation

Copy Control

It is normally set for

Header

Item

Schedule line levels

To control copying procedure we have

Data transfer routines

Copying requirements

Switches

Types of copying control:

S. No Transaction Code Source Document Target Document

1. VTAA Sales Order Sales Order

2. VTLA Sales Order Delivery Document

3. VTFA Sales Order Billing Document

4. VTLF Delivery Document Billing Document

5. VTAF Billing Document Sales Order

6. VTFF Billing Document Billing Document

Pricing Procedure


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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)

+ Customer Pricing Procedure

(Customer Master-Sales area data)

+ Document Pricing Procedure

(Sales Document Type)

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

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 between SD and FI Module.

It has got the following structure:

Header1.

Item2.

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

Account Determination

Automatic account determination in SAP Sales and Distribution sales order & billing documents take place based on following combination

Account Determination = Sales Organization + Chart of

Accounts

+ Account Assignment

Group for Customer

+ Account Assignment

Group for Material

+ Account Key + G/L Account

on which the postings

will take place

sap_sd basics configuration config determination rules information info sales_and_distribution

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