Company Code : It is an independent Legal Entity responsible for the profit/loss statement of the organizationSales Organization : Distributing Goods and Services, Negotiating Sales Condition, product liability and right of recourse.Dist.Channel : Is a means through which sales materials reach the customer, Achieve flexible pricing, differentiate sales statistics.Division : Individual product lines are separated using Division.Plant : Delivering plant is from where the materials and services are distributed and corresponds to a dist center.Shipping Point : Where the shipping activities are controlled, Each outbound delivery is processed by one Shipping point.Shipping point can be assigned to Plants of different company codes

Delivering Plant Determination CMIRCustomer Master - Ship to PartyMaterial master

Shipping point DeterminationDelivering PlantShipping Condition- Sold to partyLoading Group-Material masterCustomizing in Sales document type

Route DeterminationDeparture Zone of Shipping PointTransportation Group - Mat. MasterShipping condition – Sold to PartyTransportation zone of Ship to Party

Item Category DeterminationSales Document TypeItem category groupUsageHigher Level Item Category

Schedule Line Category DeterminationMRP Type from material masterItem CategoryOr NO MRP TypeItem Category

Account DeterminationSales OrganizationChart of AccountsMaterial A/c Assignment GroupPayer A/c Assignment GroupAccount Key

Picking/Storage. Location DeterminationMALA RULE

Shipping PointDelivering PlantStorage Condition

Door & Staging Area Determination (Header)Storage Location of Ship to PartyRoute Schedule

Staging Area Determination (Item level)Storage Location of Ship to PartyRoute ScheduleStorage Condition

Tax DeterminationDeparture countryDestination CountryMaterial Liable for TaxCustomer liable for Tax

Pricing Procedure DeterminationSales AreaCustomer Pricing ProcedureDocument Pricing Procedure

Business Area DeterminationPlant and Item DivisionSales AreaSales Org/Dist Channel/Item Division

Prerequisite for RebatesSales OrganizationBilling TypePayer

Route Schedule consist of Departure Date and timeShip to PartiesRouteItinerary (Option)

Source of Data to Sales OrderMaster DataExisting DocumentCustomizingHard Coded Data

Output Type DependencyTransmission MediumTimeLanguagePartner Function

Effects of PGIUpdates the Quantities in Inventory management Updates Value Change in Balance sheet for inventory accountingBilling due list will be generated/updatedGenerates additional accounting documentUpdate the status of Sales relevant documents

Effects of BillingDebit posting in customer receivable accountCredit Posting in Revenue accountSIS updatedCustomer Credit is revisedStatus is updated in all sales relevant document

Availability Check Dates & TimesDates :Order Date, Mat Availability Date, Transportation Planning Date, Loading Date, PGI Date and Delivery DateBackward : Req. Delv. dateForward : Conf. Delv. dateTimes : Pick pack time, Transportation lead time, Loading time, transit time.

Salient Feature of Cash SaleSales Document Type CSDelivery doc type CSOrder Related BillingImmediate Delivery is created automatically (X)Invoice printed while delivery using RD03No invoice printed while billingRevenue posting in petty cash account(EVV is the a/c key)

Salient Feature of Rush OrderSales Document Type RODelivery doc type DFDelivery Related BillingImmediate Delivery is created automatically(X)Picking and PGI done later after physical movement of material from stores.

Consignment Processing Fill upOrder, Delivery, Picking, PGI and NO BillingPlant Valuated Stock will not reduce . Stock will be maintained in special stockDocument type : CF , Movement Type : 631Item Cat : KBN

Consignment Processing IssueOrder, Delivery, PGI and BillingPlant valuated Stock reduces.Document type : CI , Movement Type : 633Item Cat : KEN

Consignment Processing PickupOrder, Inbound Delivery, and PGRDocument type : CP Movement Type : 632Item Cat : KAN

Consignment Processing ReturnsOrder, Inbound Delivery, ,PGR and BillingIncreases the special stock Document type : CONR Movement Type : 634 Item Cat : KRN

Business Data from Sold to PartyPricing IncotermsShipping conditions

Business Data from Bill to PartyBilling Address

Business Data from Ship to PartyGoods receiving hoursShip to AddressTax

Business Data from PayerTerms of PaymentCredit limit Check

Cancelling PGI The Goods issue posting in reset. Reverse the inventory posting based on cancelled quantities and values with reversed +/- sign.The cancellation document created during cancellation is entered in the document flow for the outbound delivery.The goods movement status is reset to “Not Yet Started”The delivery requirement recreated.Incase if it is billed, then first bill to be canceled and then PGI

Sales Document Function

Default ValuesMandatory FieldsEnhancement to ContractsNumber RangeChecks

Item Category Controls

Billing , BOMCompletion RuleDelivery relevancePricingSchedule line allowedSeparate Business Data

Delivery Doc Type Function

Number , Output, Text PartnersRoute RedeterminationRelevance for TransportationReference to OrderDelivery split based on Warehouse No.

Delivery Item Cat Controls

Minimum Delivery qty ,Over Delivery QtyBatch DeterminationPacking , Availability CheckRelevance for Picking , TextPicking Location determination

Schedule Line Function

Goods Movement Delivery relevancePurchasingAvailability CheckRequirement Transfer

Billing Doc Type Controls

Text ,Output ,PartnerSpecial Interface with FIPosting Block , Invoice listNumber range , Cancellation of InvoiceAccount Determination , Rebates

Free Goods : Referred from Free Goods Master record.Inclusive: Same Material, Same Unit. Not included in invoice. Customer orders for 5 eggs , charge him only for 4 eggs. 4eggs Item cat - TAN , 1egg item cat – TANN

Exclusive : Not necessarily Same Material and unit .Not typically included in invoice. Customer orders for 5 eggs, charge him for 5 eggs and give one duck free. 5eggs item cat- TAN , 1 Duck item cat – TANN

Free Goods Calculation Rule

Prorated : Free goods is given on prorate basisUnit-Related : Only within the range the Free goods is given Whole Unit : Exact quantity to match to avail free goods

Free Goods Transferring to COPA1. Revenue from Free Goods is Cumulated.2.Revenue from Free goods is shown and discounted 100%.3.Cost of Free goods is added to main items cost.

BOMItem Cat group : ERLA ; MI cat : TAQ, SI Cat : TAEMain item priced , Subitems not priced.

BOMItem Cat group : LUMF ; MI cat : TAP, SI Cat : TANMain item not priced , Subitems priced.

Copy Controls : Data Transfer Routines, Switches, Copying requirements. Maintained at Item Level & Header LevelItem Level Completion Rule A : Gives Completed Status at first reference itself.Item Level Completion Rule B : Gives Completed Status only full qty is referred, otherwise gives status as “Partially referred”.Scheduling AgreementsContains Fixed Delivery date and Quantities valid for certain period of timeDirectly create Delivery from Scheduling agreementEvery time the system adds up the total qty ordered so that the targeted qty or agreed qty is not exceeded.Periodic invoicing is possible if customer needs so

ContractsAgreement with customer for certain period of time, contains NO schd. line, delv qty or delv dates.Customer fulfills the contract with individual release Order. The release order is processed like standard order. Prices are copied from contracts. List of Valid material for the specific contract can be maintained. We can define a validity period for each material.

Quantity Contract : Total qty of items are defined in contract and customer can give any number release order till the defined quantity is reached.Value Contract : Total Value is Defined in contract and customer can give any number release order till the defined value is reached.Doc type :WK1 : General Value Contract for different materials and services. Item Cat WKN.Doc type :WK2 : Material related Value Contract for exactly one material. Item Cat WKC.Billing can be either order or delivery related Billing

Several partners may be authorized to release against the contract. Partners authorized to release are only checked at header level.

Determining Dates in ContractRules for Determining start and end of the contractDuration CategorySubsequent activitiesCancellation Procedure

Material ListingMaterial Listed are the only material that a specific customer CAN order. Maintained at master record and uses condition technique.

Material ExclusionMaterial Listed are the material that a specific customer CANNOT order. Maintained at master record and uses condition technique.

Precise Scheduling in Shipping point uses times in hours/min Daily Scheduling in shipping point uses Days

Transfer order includes information likeMaterial NumberQuantity to be MovedSource and Destination storage bin

WM Function not included in Lean Warehouse MgmtStorage section, reserve storage bins, strategies for putaway and picking, replenishment, inventory at storage bin level

Batches : Specified in Material master (Stor.1 and Purchasing)We must Specify a batch before PGI. Delivery split incase of material taken from two different batches .Re pricing can be carried out at Billing incase of two different batches and two different prices.

Serial Number : We can assign a unique Sr.No to each Material. This allows to monitor goods movement for individual material. Maintain sr.no. profile in Material master (Sales/Gen Plant). Sr.No. must be specified before PGI.

Quality Management : Specified in Material Master whether the material needs quality inspection. In outbound dely the system automatically creates Inspection lot for the delivery items that are relevant for inspection.

POD : Designed to support process of creating an invoice once the customer confirms the arrival of goods. The system creates the billing document based on the verified or customer confirmed quantity. POD is activated at Customer Master.

Pricing in outbound dely : Shipping costs and Postage are priced at outbound dely and transferred to Billing. Pricing can be manual or using condition techniques. It is a header level condition applies to all items in the delivery.

Splitting an existing dely : We can split a existing delivery into several smaller delivery ( If no enough space in 1 truck). When we split , we create more new dely called results and remainders.Split profiles are assigned at delivery types.

Packing Material : Packing Materials are grouped together in Packaging Material types ( Cartons or Containers)

Material for Packing : Materials that have similar packing are grouped as Material grouping for Packing material.

Pricing Conditions : Pricing, Discounts/Surcharge, Freight & Tax Condition Record: Maintains discounts, Validity date and manual changes limit

Condition Type : Defines category of condition and how it is used.+/- need to be set to show whether surcharge or discount.

Pricing Procedure : Condition types permitted are contained in Pricing procedure in sequence .

Access Sequence: It’s a search strategy defined for each condition type. Header and Manual condition are exception.

Excluding Condition: A condition can be linked to requirements and excluded a condition type if exclusion indicator is set.

Header Condition : They are entered at the document header and are valid for all items . Header Conditions are manually entered and does not have Acc Seq.ex.RB00(Even dist) & HB00 (Proportionate)

Combine several orders into one single outbound deliveryShipping point, delivery due date, Ship-to Party, Route, Incoterms.

Combining several outbound deliveries into a group of transfer ordersWarehouse number should be the same.

Combine outbound deliveries into a single billing documentPayer, billing due date and Destination country should be common

Criteria for collective processing for Goods issueShipping pointSelection dateForwarding agentRoute

Billing PlansDown payment

The 16 steps in the pricing procedure

1. Step2. Counter3. Condition type4. Description5. From6. To7. Manual8. Mandatory9. Statistics10. Print11. Subtotal12. Requirement keys13. Alternative cond type14. AltCBT(alternative condition

base values)15. Account keys16. Accruals key

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Prerequisite for Schedule line categoryDelivery date & quantitiesRequirement transferInventory management

Transfer order informationMaterial numberQuantity to be movedStorage and determination of storage bin.

Rebate agrmt types & Cond typ;Material rebate (BO01)Customer rebate (BO03)Customer hierarchy rebate (BO04)Material group rebate (BO02)Independent of sales volume (BO05)

Basic Functions:Text pricing procedureDate managementStatus managementIncompleteness checkPricingAccount determinationPartner determinationCredit limit checkFree goodsAvailability checkMessage determinationOutput determination

Following can be changed before an account document is created:billing datepricingaccount determinationoutput determinationNote: Only Output determination can be changed after an accounting document is created.