Basic Rules in SD Configuration

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Added by Prashanth Goud, last edited by Jyoti Prakash on
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Purpose
This wiki page will discuss the basic rule / principle /
information pertaining to SAP Sales and Distribution.
Organizational structure
Sales Organization
Its responsible for:
Distribution of goods and services
Negotiating Sales Conditions
Product Liability and rights of recourse
A sales organization is uniquely assigned to a company
code
Master data's are separately maintained for a sales
organization
All items in the Sales and Distribution document belong to
a sales organization
Distribution Channel:
This is the means through which products and services
reach the customer. So, its responsible for:
Defines responsibilities
Helps in achieve flexible pricing
Differentiate Sales statistics
Division:
A division is used to group products and services.
A division represents a product line.
Sales Area:
A Sales area is a combination of
Sales organization
Distribution Channel
Division
Each Sales and distribution document is assigned exactly
to one sales area.
A sales area can belong to only one company code.
Plant and Storage Location:
A Plant is a location where stock is maintained
Plant and storage location are used by all logistic area of
R/3 System
A Plant is uniquely assigned to a company code
Shipping point:
Shipping point is the highest level of organizational unit in
shipping
Each outbound delivery is processed by one shipping
point
Shipping points are assigned to a plant
More than one shipping point can be assigned to a plant
Process
Sales and Distribution is SAP begins with establishing
customer relationship and ends with invoicing for the
delivery of goods or service provided to the customer.
A standard process flow for sales transaction has the
following flow:
1. Inquiry
2. Quotation
3. Sales Order
4. Delivery Document
5. Invoice
The customer order management cycle begins with pre-
sales activities.
Sales Order
A standard sales order in SAP contains:
Customer & its partners details
Material information
Pricing conditions
Delivery dates and quantities
Shipping/Transportation information
Billing information
Accounting Interface information
Required Output Details
Document Status
Inventory sourcing at Sales Order & Delivery
It is handled through:
Availability check
Shipping
SAP supports following shipping process:
Outbound delivery creation
Picking
Packing
Post Goods Issue
Billing
SAP supports following billing process:
Creating invoices for products and services
Creating credit and debit memo
Cancel previously posted billing documents
Automatically transferring billing documents to accounting
When a billing document is created for a sales order we
Credit the sales revenue account
Debit the customer receivables account
Sales Documents - Structure & related information
Sales Order
A sales order is grouped into three structures
1. Header
2. Item
3. Schedule Line
Outbound delivery
A delivery document is grouped into two structures
1. Header
2. Item
In standard system, several orders can be grouped into
single outbound delivery, provided the referenced orders
have same
1. Shipping point
2. Delivery date
3. Ship-to address
Picking List or Transfer Order
created for an outbound delivery
created for a warehouse number
Post Goods Issue
When PGI is done the system
Updates the quantity in inventory management and
delivery requirements in materials planning
Generates additional documents for accounting
Adds the delivery to the billing due list
Updates status in sales documents
Billing
A billing document is grouped into two structures
1. Header
2. Item
In standard system, several orders/deliveries can be
grouped into single billing document, provided the
orders/deliveries have same
1. Billing date
2. Payer
3. Billing address
The effects of billing are
Debit on the customer receivables account
Credit on sales revenue account
System updates
- Sales information system
- Sales statistics
Master data in SAP
In sales and distribution, the following main master dates:
1. Customer master
2. Material master
3. Condition master
4. Output master
5. Customer material information master
Customer master
The master data for customer is maintain in 3 major area
1. General Data
2. Company Code data
3. Sales Area Data
Following is the table which shows detail on three main
areas of customer master and the tab pages & details
found under each area:
General Data Sales Area
Data
Company Code data
Address Sales Details Account info
like Reconciliation
account
Control data
like
Transport.zone,
tax info
Shipping
details
Payment
like Terms of
payment, auto
payment details
Payment
transaction
like bank details,
payment cards
Billing details
like payment
term, account
details
Billing
Correspondence
like Dunning
Procedure, payment
notice
Marketing Partner
functions
Insurance
Export data
Contact Person
details

Material Master
It is maintained in different views. Following are the
important views maintained for material master in sales
and distribution:
Views Key Fields
1. Basic data 1
Base Unit of Measure
Material Group
Gross Weight & its unit
Net Weight
Volume & its unit
Size/dimensions
Languages Maintained
2. Sales Org 1 Sales unit
Division
Tax Data
Min.order qty
Min. dely qty
Rounding Profile
3. Sales Org 2 Matl statistics grp
Material pricing grp
Acct assignment grp
Item category group
Product hierarchy
Material groups
Product attributes
4. Sales :
Gen/Plant
Availability check
Batch
Transportation Group
Loading Group
Matl Grp Pack.Matls
Profit Center
Negative Stock
Serial Number
5. Foreign Trade
Export
Comm./imp. code no.
Export/import group
Control code
Legal Control
6. Sales text
7. Accounting 1 Valuation Class
Material Price Determination
Price Control & Moving price or
Standard price
Sales Document Type
Sales document type like OR in Sales and distribution
mainly controls:
Number range
Item No increment
Reference mandatory
Item division
Read info record
Document pricing procedure
Incomplete messages
Alternative sales documents
Delivery block
Billing block
Immediate delivery
Subsequent Delivery type
Subsequent Billing type
Proposed delivery date
Lead time for delivery
Proposed pricing date
Plant Determination in sales order
To determine the plant in a sales order the system checks
the master in the following sequence:
Sequence Master Data
01 Customer material info. record of the sold-to
Party
02 Customer master record of the Ship-to Party
03 Material master record of the material
Shipping Point
The following is combination with which shipping point
gets determined automatically in a sales order:
Shipping
point =
Plant + Shipping
Condition
(Sold-to-Party)
+ Loading Group
(Material master
Gen: Plant data)
Route
Route automatically gets determined in sales order based
on following combination:
Rout Departur + + +
e = e Zone
(from
Shipping
Point)
Shipping
Conditio
n
(from
Sold-to-
Party)
Transportatio
n Group
(from Material
master)
Transportatio
n Zone
(from Ship-to-
Party)
Delivery Scheduling
As name denotes delivery scheduling is scheduling
delivery for an order, which carries out through the
following important dates:
1. Material availability date
2. Transportation planning date
3. Loading date
4. Goods Issue date
5. Delivery date
Availability Check
Following are features of availability check:
It is carried out at item level for a plant
It is done on the material availability date
If material availability date is in the past the forward
scheduling is done, if not backward scheduling is done.
Item Category
Item category controls behavior of material in sales order.
In a sales document, it mainly controls the following:
Relevance for billing of an item
Billing block
Pricing relevance
Business data relevance item
Schedule line allowed
Item relevant for delivery
Returns
Determine cost
Credit active
Incompletion procedure
Partner determination procedure
Structure scope (relevant for bill of material explosion)
Value contract material
Contract release control
The following is combination by which Item Category
automatically gets determined in sales order.
Item
Category
=
Sales
Document
Type
+ Item
Category
Group
{Material
master)
+ Item
Usage
(if any)
+ Item
Category of
Higher
Level Item
(if any)
Schedule Line Category
Every item which has a delivery will have a schedule line
and the schedule line category is determined with the
following rule:
Schedule Line Category
=
Item
category
+ MRP Type
(Material
Master)
It mainly controls:
Delivery Block
Movement type
Item relevant for delivery
Req/Assembly
Availability
Product Allocation
Copy Control
It is normally set for
Header
Item
Schedule line levels
To control copying procedure we have
Data transfer routines
Copying requirements
Switches
Types of copying control:
S.
No
Transaction
Code
Source
Document
Target
Document
1. VTAA Sales Order Sales Order
2. VTLA Sales Order Delivery
Document
3. VTFA Sales Order Billing
Document
4. VTLF Delivery Billing
Document Document
5. VTAF Billing
Document
Sales Order
6. VTFF Billing
Document
Billing
Document
Pricing Procedure
Pricing is an important component in SAP Sales and
Distribution. Once an order is entered taking into
consideration some major factors, the pricing procedure
for the particular order is determined.
The major factors or combination is taken into
consideration for pricing procedure determination in sales
order:
Pricing
Procedure
Determination
=
Sales Area
(Sales
Organization +
Distribution
Channel +
Division)
+
Customer
Pricing
Procedure
(Customer
Master-
Sales area
data)
+
Document
Pricing
Procedure
(Sales
Document
Type)
Shipping
The basis for shipping is delivery.
Delivery document controls the following in deliveries
Number range
Item no increment
Storage location rule
Route determination
Text determination
Delivery split
Gen. packing material / item
Order required
Item category for delivery controls:
Check minimum delivery
Availability check
Relevant for picking
Storage location required
Determine storage location
Automatic batch determination
Text determination procedure
Packing control
Stk determ.rule
Billing
Billing is sales process is of the critical integration point
between SD and FI Module.
It has got the following structure:
1. Header
2. Item
It mainly controls:
No. range
Posting block (to controls posting of invoice to accounting)
Relevance for rebate
Account determination procedure
Account determination recon account
Account determination pay.cards
Output determination procedure
Cancellation billing type
Account Determination
Automatic account determination in SAP Sales and
Distribution sales order & billing documents take place
based on following combination
Account
Determi
nation =
Sales
Organiz
ation
+
Chart
of
Acco
unts
+
Accou
nt
Assign
ment
Group
for
Custo
mer
+
Accou
nt
Assign
ment
Group
for
Materia
l
+
Acco
unt
Key
+ G/L
Acco
unt
on
whic
h the
posti
ngs
will
take
place