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SAP SD IMP NOTES

SAP SD IMP NOTES

SAP SD IMP NOTES

SAP SD Certification KEY POINTS

A few points about this Document: Being a SAP SD Certified Consultant, I feel journey for SAP certification not only build the foundation stone of SAP basic knowledge but also help to develop the fundamental logic behind the application. This document tried to touch each nook and corner about SAP SD Certification areas and to get a good score in Certification exam.

How to Use this document? First of all, this document doesnt have any connection or guarantee any kind of success in SAP Certification. This document also doesnt have any kind of authorization from SAP. Having said that, this document will definitely help you in the attached following areas: 1. This document can be treated as good reference points to remember all the important topics in SAP SD Certification exam. 2. After completion of SAP SD Certification exam SD topics (which are prescribed by SAP) in its SAP Certification documents (Like TSCM 60 and TSCM 62), this document will definitely help a candidate to revise all the topics in a quickest possible time. If any case you find any wrong/ incorrect statement please send an email note to basuari@gmail.com. I will definitely take care of the same.

ContentsENTERPRISE STRCTURE8CLIENT (Company)-8Company Code8Sales Organization9Distribution Channel9Division10Sales area11Business area12Plant13Shipping Point13Warehouse15Relationships among the different Org Units:16MASTER DATA17Customer master Data17Account group20Customer material information record21Material master data21Sales Document22Example of Sales document Type22Important Controls of Sales Document Type.23Functions of Sales Documents:24Sales document Item category25Example of Sales document Item category25Important Controls of Sales Document Item category25Item Category Determination-26Schedule line category27Bill Of Materials27Availability check28Backorder processing29Shipment or Delivery scheduling29Assembly processing [Make to Order]30Make to Order WITH ASSEMBLYPROCESSING-30Output31Different Output Types31Output Determination Level & Assignment in Sales31Complaints processing32Sales information system32Online List-33Work List-33Standard Analysis:-33Flexible Analysis:-34Data flow34Special Business transaction35Rush sale35Cash Sale35Consignment processing36Delivery free of charge and subsequent deliveries36Partner Determination37Partner Determination Assignment:38Incompleteness38Incompleteness Log Function38Outline agreement39Scheduling agreement39Contracts39Material Determination40Listing41Exclusion41Free Goods42DELIVERY43Logistics Execution43Structure Delivery document44Delivery type control45Delivery item category controls45Route determination46Shipment or Delivery scheduling46Backward scheduling-47Forward scheduling-47Precise scheduling47Daily scheduling: -47Shipping Point Determination Change:48Picking location / storage location determination: - MALA, RETA, MARE48Options for creating Outbound Deliveries48Delivery due list49Shipment49Out bound delivery monitor49Transfer order50Lean Warehouse Management50Batch management setting-50Serial number51Shipping related condition51Delivery split51Packing52Packing control-52Goods issue53Effect after goods issue-53Cancel goods issue54Quality management54POD settings55TAB PAGES IN DELIVERY DOCUMENT55More Functions of Delivery:55PRICING56VARIOUS COLUMNS IN PRICING PROCEDURE (RVAA01)56Condition records56Pricing report57Condition indexes57Condition table57Release procedure58Access sequence58Condition type58Header condition (59Special pricing functions59Group condition59Group condition with varying key/s59Condition update:59Condition supplements:59Condition exclusion59Special condition type60Manual pricing: -60Minimum price:60Interval scale (PR02)- Scale pricing60Rounding Diff: -61Customer Hierarchy Pricing61Settings-61Discount and surcharges61Statistical condition type62Update price62Calculation type62Pricing procedure62Pricing procedure determination-63Condition type63Pricing type63Tax determination64Sales deal and promotion64Rebate processing64Step rebate processing: -65Retroactive rebate agreements66Requirements66Billing overview66Controlling the billing process67Billing type control67Billing Types:68Invoice combination and Invoice split68Invoice list: -68Data flow and coping control69Special billing type70Credit and debit memos:70Invoice correction request:70Returns71Pro forma invoice71Cash sale71TAB PAGES FOE BILLING DOCUMENT73Header -73Item 73Special business transactions73Billing plan-Periodic billing and Milestone Billing73Periodic Billing73Milestone billing: -74Down payment processing in SD74Installment Payments75Account determination75Criteria for account determination-75SD/FI interface76Copy control.77Text Control77System Modification:78SAP Solution Manager78Solution Manager Definition78Why Solution Manager79ASAP Methodology79SAP IMG (Implementation Guide (IMG)81Appendix 181

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 1. Balance sheet required by law 2. Profit and Loss statement.

Each company code represents an independent accounting unit. Several company codes can use the same chart of account. Assignment Company Code1. Company

2. CCA

3. Controlling Area

4. Plant

5. Sales Org/Distribution Channel

(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 1. Distributing goods and services, 2. Negotiation sales conditions, 3. Product liability and other customer rights of recourse. 4. Performs each business transaction. 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 the organizational element in Logistics that represents the company structure according to its sales and distribution requirements. 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. Multiple division cant be shared by Common Division. The items in a delivery can belong to different distribution channels. All the items in a billing document belong to one distribution channel. You can determine sales offices for a distribution channel. You can define your own sales document types for a distribution channel.

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. You can define sales offices for a division. You can determine that all the items in a sales document belong to the same division for each sales document type. The items in a delivery or billing document can belong to different divisions. You can use the division as a selection criterion for listing sales documents and creating a delivery work list. 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 1. Business Area assignment by Plant and Item division. (Who deliver what?)2. Business Area assignment by sales area. (Who Sells?)3. Business Area assignment by Sales Organization and D.C, Item Division. (Who sells what?)

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. Plant is a Central location for SD. Delivering Plant Determination in sales Document according to following step 1. CMIR 2. Customer Master-Ship to Party (Sales area- shipping tab page)3. Material Master- Sales Org. 1 View.

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. 1. Delivering Plant 2. Shipping condition- Sales document type OR Customer master data-Sold to Party (Shipping Tab Page) 3. Loading group-Material master data (Sales: Gen/plant) 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. 1. Warehouse Number assigned to a combination of Plant and storage location. 2. 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. 1. 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. (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. Difference between Lean Warehouse and Warehouse Management is NO fixed storage bin in Lean Warehouse level is maintained.

Relationships among the different Org Units:

Company Code to Sales Organization: One to Many Sales Organization to Distribution Channel: Many to Many Plant to Company Code: Many to One. In Intercompany: Many to Many Plant to Shipping Point: One to Many. Many to many if in one geo area. Plant to Sales Organization: Many to Many

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. 1. General Data: store centrally-Client specific, valid for all organizational Units. And also for independent to all org units.2. Sales Area data: Only for Sales Org and Distribution Channel. 3. Company Code data: Only for Co Code. It includes all necessary data for processing Order, Deliveries, invoices and Cust. Payment.

Customer MasterGeneral DataCompany Code DataSales AreaClient Specific dataCompany Code SpecificSales area specific

General data having on following tab1. Address: Name, Address, and Language. 2. Control Data: Tax Information 3. Payment Transaction: Bank Details 4. Marketing: Industry, Customer Classification 5. Unloading Point: goods receiving Hours 6. Export Data: Data for export control 7. Contact Person: Address of business partner Sales Area data having following tab pages.

1. Sales: Sales office, sales district, currency, customer group, Customer pricing procedure, Price list. 2. Shipping: Delivery, Shipping condition, Delivery Plant, POD Relevance, Partial delivery Check Complete delivery by law, Transportation Zone. 3. Billing: Incoterm, Term of payment, Credit control area, Account Assignment Group, Tax. 4. 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 1. The account group specifies:2. Which entries in the master record are required or optional (field selection) 3. The number range for the customer account number Whether the number is assigned by the user or the systema. (external or internal number assignment)b. Whether or not the account is a one-time account (conto pro diverse) 4. Which output determination procedure is used Master data proposal in sales document- 1. Delivery date and tax information- From Ship to Party master record 2. Payment terms, Credit limit check- From Payer master record 3. Address to which invoiced to send - From Bill to Party master record Shipping conditions, Pricing, incoterms-From Sold to Party .Source of Information for Sales Order: 1. Master Data (Customer Master, Material Master, Customer-Material Info etc.)2. Existing Documents3. Hard coding4. CustomizationWhen you enter a sales order, you dont need to specify the sales area immediately. If you dont, the system automatically derives the sales area from the sold-to party. Item Division (In VOV8): If you mark this field, the system proposes the division from the material master record of the item. If you leave the field blank, the division in the document header also counts for all items.

Customer material information record Cross reference from your customers material no. to your material and customer material description. By this sales order can be placed with the customers material no. by using Ordering tab page It keeps information about Delivering plant, Customer material no. and Delivery agreement Complete/Partial Material master data

Basic data 1 (valid all module area)-Old Material no., Division, Material group, Material group packaging material, Base unit of measure, General item category group Sales: sales org. 1: Delivering Plant, Material Group, Division, Condition, Tax data, Cash discount, Minimum Order quantity, Minimum Delivery Quantity

Sales: sales org. 2: Material group, Bonus Group, Product hierarchy, General item category group, Item category group, Product attribute Basic data is relevant to all areas. It is maintained independently of the organizational units. Data for Sales: Sales Org. 1 and Sales: Sales Org. 2 and the sales text is valid for the sales organization and distribution channel. Sales: General/Plant data and the Foreign Trade: Export data is valid for the delivering plant.

Sales Document A sales Document has three level-Header, Item and Schedule Line When you create a sales document, you 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 QC = quantity Contract QT = quotation Out Line agreementDS = Scheduling Agreement QP = Rental ContractWK1 = General value contract Sales Phase OR = Standard order RO = Rush order FD = Free of charge delivery CS = Cash sales Complaints RE = Returns CR =Credit memo request SDF = Free of charge subsequent deliveryCF = Consignment fill-up DR= Debit memo request

Sales Document Types- 1. Standard Order.2. Cash Sales3. Rush Order4. Credit/Debit Memo Request ( DR/CR) 5. Consignment6. Contracts7. Free of Charge Delivery8. Returns The standard systems features wide range of different sales document types for sales processes that are carried out on a regular basis: Standard order for invoiced sales on fixed delivery dates. Rush order and cash sales for sales from the plant (with or without invoice). Free deliveries for sales on fixed delivery dates (without invoice). Returns for return goods (credit memo/replacement delivery).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 doesnt 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). Profitability Calculation: The probability (expressed as a percentage) of the customer confirming the inquiry or quotation as part of a sales order.

Functions of Sales Documents: 1. Availability Check2. Text3. Delivery Scheduling4. Message5. Pricing6. TOR7. SIS8. Credit Check.

SAP SD Certification HandbookSAP SD Certification Handbook

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Sales document Item category Example of Sales document Item category AT = Inquiry schedule line BN = quotation Schedule line without MRP CV= scheduling agreement with consumption-based MRP Sales Phase CP = Order schedule line with MRP Complaints DN = Schedule line in Returns without MRP CO = Consignment issue without availability check DO =Consignment returns

Pre-sale phase AFN = standard item Inquiry KMN = standard item in quantity contract AGTX = Text item in quotation Out Line agreement

WVN = Standard item in maintenance contract WKN = item in value contract Sales Phase TAN = Standard item TAD = Service in standard order KEN = standard item in consignment issue

ComplaintsREN = Returns standard item G2TX = Text Item in returns BVNN= Free of charge item in cash sale 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. An item category can influence, for example: 1. Whether the system runs automatic pricing 2. Whether the item appears on an invoice 3. Which fields are recorded in the incompletion log if they were not entered in the order.4. Which partner functions belong to the item 5. Which text types belong to the item 6. Whether the item appears on a delivery 7. Whether you can create schedule lines for the item

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. Block TypeHeader LevelItem LevelSchedule Line Level

Delivery Block YesnoYes

Billing BlockYesYesno

Delivery RelevanceYes

Billing RelevanceYes

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. To determine how far the BOM should be exploded in the sales document, you need to define the extent of the structure of the item category for the main item. When you determine the sub-items, the system also needs to know the item category of the higher-level item. 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 Header level (Main item level If the product is assembled Item level(Component level-If the product is not assembled )

Availability check An Availability check is carried out during sales order processing. An availability check occurs if- 1. The Material requires an availability check-in material master (Gen./Plant or MRP 3) 2. 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- 1. Current stock 2. Inward movement 3. Outward movement

Backorder processing An order item is backdated if 1. The quantity of an order item is NOT totally confirmed. 2. 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 customers 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 customers required delivery date and has no confirmed quantity. The date of schedule line shows the confirmed delivery date and the confirmed quantity. The replenishment lead time can be specified for each material. 1. Trading goods: planned delivery time + goods receipt processing time, 2. Finished goods: in-house production time.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 ASSEMBLYPROCESSING-

Production Order is generated from sales order (No need material planning run). The individual components for the final product have already been produced; we only need to assemble the component according to the customers requirement.

SAP SD IMP NOTES

SAP SD IMP NOTES

SAP SD Handbook

Abhishek Parihar SAP SD Certified Consultant E-Mail: abhishekparihar@rediffmail.com

Page 27 | 81

Output

Different Output Types

1. Order Confirmation ( BA00/ EDI-BA01)2. Delivery Note (LD00)3. Invoice ( RD00)4. Cash Sales Invoice (RD03)5. Sales Activity (KO00)6. Mail Credit Processing (KRML)7. Scheduling Agreement ( LP00)8. Quotation Confirmation (AN00)

Output types are assigned to

1. Partner functions,2. Transmission media and3. Dispatch time.

The transmission medium determines how output is issued. Processing the output (in other words, sending the information) is controlled by the relevant processing program. You determine the transmission medium, the time and the partner function in the condition record. In the output master data, you define the transmission medium, the time, and the partner function for an output type.

Output Determination Level & Assignment in Sales Output is sent to the partner who matches the partner function in the underlying object (for example, the sales order). It is also possible to create output that is not dependent on a particular partner (for example, labels).Output Determination - LevelAssign to

Output Determination - Sales Document: Headerassigned toSales Document Type

Output Determination - Sales Document: Itemassigned toSales Document Item Category

Output Determination - Delivery Document: Headerassigned toDelivery Type

Output Determination - Delivery Document: Itemassigned toDelivery Item Category

Output Determination - Billing Document: Headerassigned toBilling Type

Output Determination - Billing Document: Itemassigned toBilling Type

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- 1. Provide Data for document, 2. Display document for example-For a customer or a material, with a specific status. 3. 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. Standard Analysis:- 1. 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. 2. 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. 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. Billing DocBilling Qty

Based on OrderOrder Qty- Qty Already Billied

Qty already delivered - Qty Already billed

Based on a Credit Memo requestOrder Qty-Qty Already Billied

Based on a Delivery Qty already delivered - Qty Already billed

Pro Forma Invoice (F5)Order Qty

Pro Forma Invoice (F8)Delivery Qty

Special Business transaction Rush sale 1. Sales from Plant Scenario. 2. Sales document type-RO 3. Delivery Type-LF 4. Standard item category- TAN [RO+NORM] 5. Billing Type-F2 [Delivery related] 6. Immediate Delivery switch Checked (A)7. Once the goods have been withdrawn from the warehouse, Picking and posting goods issue can begin. Cash Sale 1. Sales from Plant Scenario. 2. Sales document type-CS 3. Delivery Type-BV 4. Standard item category- BVN [CS+NORM] 5. Billing Type-BV [Order related] 6. Immediate Delivery switch Checked (X)7. 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 the 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 Fill up (CF) YES YES YES YES NO Issue (CI) YES YES NO YES YES Pickup (CP) YES YES NO YES NO Returns (CONR) YES YES NO YES 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 1. Customer master 2. Sales document header 3. Sales document item 4. Delivery Type 5. Shipment Type 6. Billing Header 7. Billing Item 8. Sales Activities Examples of business partners are: 1. Customer 2. Vendor 3. Employee 4. Contact person Examples of business relationships are: 1. Vendor-customer: The vendor acts as the forwarding agent for the customer 2. Contact person-customer: The contact person is employed at the customers company 3. Contact person-customer: The contact person is the customers consultant but does not work in the same company. 4. Customer-customer: Sold-to party and ship-to party are not the same. 5. Employee-contact person: Contact person is looked after individually 6. Employee - customer: Customer manager

Partner Determination Assignment:

1. Partner Function to Account Group.2. Assign Account Group to Partner Determination Procedure.

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 Function1. Sales- Header 2. Sales- Item 3. Sales- Schedule Line 4. Partner 5. Sales activities 6. Delivery header 7. Delivery Item

Outline agreement Two types- Contracts and Scheduling agreements The outline agreements with schedule lines are Scheduling agreements and without are Contracts. Outline agreements play an important role in nearly all business processes. Outline agreements streamline business processes for both partners in a business relationship. In the SAP system, various sales document types represent different outline agreements. The simplest and most common type of scheduling agreement is represented in the system by document type DS.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. A scheduling agreement is an outline agreement between you and a sold-to party that is valid for a certain period of time.Contracts Two Types-Quantity contract and value contract. TCODE- VA41. The contract does not contain any schedule line, delivery quantities or delivery date. It is valid for a certain period of time with start date and end date. Generally, no restrictions apply to the different contract forms 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). Release orders are created with reference to a contract. This generates a document flow record that allow you to update released quantities and values in the contract. In copying control, you decide which types of sales documents can be used as release orders from a contract. 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. Release orders are created with reference to a contract. This generates a document flow record that allows you to update released quantities and values in the contract. In copying control, you decide which types of sales documents can be used as release orders from a contract. 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: 1. Rule for determining start and end of the contract 2. Duration category 3. Subsequent activities 4. 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- 1. Sales area 2. Document determination procedure (Sales document type) 3. 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 exclusive 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- of- charge 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. You can restrict master records for one level in many different ways: 1. Validity period: The condition is only valid within this period. 2. Minimum quantity: The condition comes in to affect when this quantity has been exceeded Calculation rule: see next slide Scales. Lets say you are offering to supply 3 units of free goods for every 100 units orderedLets say customer orders 226 units.Using the rules system would calculate in following wayRule 1 Prorated: 226* (3/100) = 6.78 = 7 (rounded up)Rule 2 unit related: 200*(3/100) = 6 (system calculates in units of 200. since 226 are ordered, it calculates for 200 units)Rule 3 whole units: 0 free goods since 226 is not a complete unit of 100

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: a. Monitoring of deadlines for reference document due for shipping b. Creation and processing of outbound deliveries c. Monitoring of goods availability d. Monitoring of capacity situation in the warehouse e. Support for picking (With link to the warehouse management system) f. Packing of outbound delivery g. Printing and distribution of shipping documents h. Processing of goods issue i. Controlling through overviews of i. -Outbound deliveries currently in process ii. -Activities still to be performed iii. -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- 1. The goods receipt process 2. The goods issue process 3. Internal warehouse process 4. The transportation process Organizational structure: logistics Plant, Storage location, Warehouse number, shipping point Logistics Execution is the link between procurement and distribution, regardless of whether the processes involved are internal or relate to third-parties (vendors, customers, or service providers). Inbound deliveries can be created with reference to purchase orders. 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 ControlDelivery HeaderDelivery Item

Picking RelevanceYES

Packing Control YES

Automatic PackingYes

Storage Location Determination YES

Rule for Storage Location ( MARE/MALA/RETA)Yes

Storage Location RequiredYES

Delivery RelevanceYES

Check for Min/Over/Zero Delivery YES

Availability Check ControlYES

Text Determination/ Output DeterminationYESYES

Delivery Split by WH NoYes

Delivery Split by PartnerYes

Order Reference requiredYes

Automatic Batch DeterminationYes

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: 1. The departure zone- shipping point (customizing)2. Shipping condition-sales document type or sold to party 3. The transportation zone- ship to party (shipping tab) 4. 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- a. Pick/Pack Time b. Loading Time c. Transportation Time d. Transit Time Shipping point calculate: - Pick/Pack Time, Loading Time Route calculate: - Transportation Time, Transit Time

The following data is used in shipment scheduling: (OMLGD) Order date: date on which the order is placed Material availability date: date by which a sufficient quantity of goods must be available for picking and packing Loading date: date on which the goods picking and packing process is completed(and the mode of transport is available)so that loading can begin on time Goods issue date: the date on which the goods must leave the delivering plant so that they reach the customer on the agreed date Delivery date: date on which the goods arrive at the customer. A differentiation is made between:

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. Shipping Point Determination Change: In Sales Document: Can be changed if mentioned as Possible (Proposed) Shipping point during Shipping Point Determination. In Delivery Document: Cant change the shipping point Picking location / storage location determination: - MALA, RETA, MARE MALA: - determination based on the shipping point, the delivering plant, and the storage Condition (Material master-plant data/storage 1) RETA: - Determination based on the delivering plant, situation, and storage condition. MARE/MARA: - First MALA then RETA / first MALA will be considered for storage location determination if it does not satisfied your requirement then we will use RETA a backup procedure with the help of SAP enhancement V02V0002.

RETA and MARA: These rules are mainly used in trade scenarios. 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 without reference to a particular order. However, if you create a delivery manually, you cannot deliver purchase order or other request. You can change or add to delivery documents after they have been saved. However, information such as ship-to parties and shipping points can no longer be changed once you have created the outbound delivery. For example, you could add items to the outbound delivery. These items may refer to other orders (deliver order function). The same split criteria apply to the additional orders as to the combination of orders during collective processing. You can also add items to the outbound delivery without referring to an order.Delivery due list The delivery due list is a work list of all operations requiring deliveries.Combining items from different sales orders is only possible if the items have several common characteristics, for example: Shipping point (goods issue from the same place in your enterprise) Date that delivery is due (date on which shipping processing should begin, either materials availability date or transportation planning date) Ship-to party(out bound deliveries have the same destination) Route (same method of transport and route) Incoterms (International Chamber of Commerce terms of liability for freight in-transit)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 order 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. Lean Warehouse Management Lean Warehouse Management only with Fixed Bin Storage. Some of the WM functions not included in Lean WM are: 1.Storage sections, 2. Reserve storage bins 3.Strategies for put away and picking 4.Replenishment 5. Inventory at storage-bin level. For Lean WM, you need at least one warehouse number and at least one storage type from which picking takes place.

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. 1. Delivery split by warehouse number 2. Delivery split by partner

Packing

Picking is the process of preparing goods for delivery to the customer with special attention paid to dates, quantity, and quality. The packing function is available in Order (as packing proposal), in the inbound delivery, In the outbound delivery, In the shipment document. When you create the transfer order, the system sets the delivery quantity as the picking quantity and the picking status is set to C (=fully picked). If you wish to have the system record that the picking procedure is complete, you can set up the confirmation requirement. In Customizing, you define the confirmation requirement for each storage type. Selected items from an outbound delivery can be packed in an individual packaging type called a handling unit. The handling unit is assigned a unique sequential number from a predefined number range. Packing instructions consist of: 1. Packaging Materials 2. Materials to be packed 3. Text items 4. Subordinate packing instructions 5. Rules concerning rounding, minimum quantities, 6. Definition of a check profilePacking 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- 1. You must set item category determination in customizing. In this context, table entries with PACK usage are relevant. 2. The delivering plant must be determined using the plant determination rule in the packaging material type or must be entered manually. 3. If you want to bill the customer for packaging material, item category should be determined as DLN. 4. 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. Posting goods issue for an outbound delivery completes shipping activities. 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) You specify in the Quality Management view of the material master if a quality inspection is to be carried out for the material.Effect after goods issue- 1. Reduce warehouse stock 2. Post the value change to the stock accounts in inventory accounting 3. Enter status information in the outbound delivery. 4. Reduce delivery requirement. 5. Is store in document flow and update status of preceding document 6. 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. Proof of delivery (POD) is essentially designed to support the process of only creating an invoice once the customer has confirmed the arrival of the materials. If differences are reported, the delivery cannot automatically be confirmed. In this case, you must continue processing manually.

TAB PAGES IN DELIVERY DOCUMENT Overview: - Item overview, Picking, Loading, Transport, Status overview, Goods movement data. More Functions of Delivery: Quality Checks, Texts, Export Controls, Dangerous Goods Check, Group of Outbound deliveries, Delivery Split by WH no, Controllable error message, Credit and risk management, Material substitution.

PRICING

Condition tabledefines key fields of the condition records Access sequenceContains the hierarchy for condition record access Condition typeRepresents the properties of the pricing conditions Pricing procedureDefines how the condition types are linked Procedure determinationSelects the correct pricing procedure Adding new fields for pricing Creates new fields to meet customer requirements RequirementsDefines dependencies and improves performance FormulasEnables expanding the limits of standard configuration Which condition master data categories (4) can be used in pricing? Answer: Prices, surcharges/discounts, freights, taxes.

VARIOUS COLUMNS IN PRICING PROCEDURE (RVAA01) (16 Fields of Pricing)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 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.

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 1. Released 2. Blocked 3. Released for price simulation 4. 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 key/s: -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 1. Condition exclusion indicator can be set in either the condition type or the condition records. 2. 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- 1. Create master records for each node 2. Assign node to each other 3. 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 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. Condition type SKTO- statistical condition used to retrieve the cash discount rate. It has condition category E. You can use condition type EDI1 (Calculation Formula 8) to compare the net price for each item. You can use condition type EDI2 (Calculation Formula 9) to compare the overall litem value, which is obtained by multiplying the net price and the quantity. 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. Tax Determination Criteria: 1. Departure Country (Delivery Plant Country). 2. Destination Country (Ship to Party). 3. Material Master. 2. Customer Master. 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. The standard system provides the following rebate agreement types: Material rebate Customer rebate Customer hierarchy rebate Material group rebate Independent of sales volume 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 Partial rebate settlements can be limited for each rebate agreement type as follows: Up to the accumulated accrual amount Up to the calculated payment amount for the current date Unlimited Step rebate processing: - 1. Rebate processing begins by creating a rebate- relevant billing document. 2. The valid rebates condition type are determined by the pricing procedure using the rebate basis subtotal. 3. Each rebate condition type has an assigned access sequence (set in customizing). 4. 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. 5. The accrual amount is calculated using the rebate basis. 6. The system posts an accrual to financial accounting and update accrual in rebate agreement same time. 7. You can perform a final settlement for the rebate agreement in the following ways: Manually automatically in the background (batch programs: RV15C001andRV15C002) 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 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. Each company code in the system uses general ledger accounts from exactly one chart of accounts 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. Billing Types:

1. Cash Sales 2. Returns 3. Cancellation (S1/S2) 4. Intra Company Billing 5. Pro forma Invoice 6. Invoice 7. Invoice List 8. External Transition 9.Credit /Debit Memo (L2 /G2) 8. Credit Memo List ( LG) Creating Invoices on Specific Dates1. Maintain individual billing dates in the factory calendar using special rules. 2. Enter the factory calendar in the customer master record of the payer (Billing schedule on the billing screen). In the SAP standard system, cancellations and credit memos are posted on the opposite side of the account as compared to posting receivables to the customer.

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: 1. Define a factory calendar, which specifies when invoice list are to be created. 2. Enter this factory calendar in the payer master record (Billing screen, invoice list schedule field). 3. Maintain condition record for condition type RL00 for the payer. 4. Create output 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, otherwise 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. A billing rule can be created for each billing plan date. This rule determines how the value to be billed on a particular date is determined.

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. If the value of the credit memo request is below a certain minimum limit, then it can be released automatically by the system. 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: 1. 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. 2. 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 Pr