Professional Documents
Culture Documents
SAP R/3 Sales and Distribution: Subject Listing and Exercises
SAP R/3 Sales and Distribution: Subject Listing and Exercises
1.1
1.2
1.3
4
5
6
ORDER TYPES
CHECKING AVAILABLE STOCK
CREATE A SECOND SALES ORDER
RE-CHECKING AVAILABLE STOCK
7
8
8
9
10
3 CREATING DELIVERIES
11
3.1
3.2
13
14
4 PARTNER FUNCTIONS
15
4.1
15
5 BILLING
16
5.1
16
6 APPLYING PAYMENTS
17
6.1
17
7 FREE ITEMS
19
7.1
19
21
8.1
8.2
21
22
23
9.1
9.2
9.3
9.4
9.5
23
24
25
25
26
28
10.1
10.2
10.3
10.4
10.5
10.6
28
29
30
31
32
33
CREATING AN INQUIRY
CREATE AN ORDER REFERENCING THE INQUIRY
PARTIALLY REFERENCE A SECOND INQUIRY
CREATING A QUOTATION
CREATE AN ORDER REFERENCING THE QUOTATION
PARTIALLY REFERENCE A SECOND QUOTATION
11 PACKING IN DELIVERIES
35
36
39
13.1
13.2
13.3
13.4
13.5
39
39
42
42
44
14 PRICING
45
14.1
14.2
14.3
14.4
14.5
45
46
47
48
50
PRICING PROCEDURE
CONDITION TYPES
CONDITION TYPES AS DEFINED IN THE IMG
ACCESS SEQUENCES AND CONDITION TABLES
HOW PRICING PROCEDURES ARE USED IN ORDERS
52
15.1
15.2
15.3
15.4
52
53
55
57
RETURNS
RETURN DELIVERY
CREDIT MEMOS
BILLING
1.1
There are several views of SAP R/3, from both the developers and the users
perspectives. These views include the:
Functional view: which is enables the user to access and use the
functions within R/3.
1.2
The Sales and Distribution Module covers the path of an order from
initiation (and even pre-initiation), to order fulfillment. All the different
processes of the order life-cycle are linked within SD and to relevant
processes outside SD e.g., Financial Accounting and Materials Management.
Characteristics of SD are:
Multilingual/Multicurrency: Several languages can be used.
window. From this window, there is simple access to all the levels of the
order, namely header, item, and schedule line information.
Comprehensive Reporting. The Sales Information System (SIS) allows
1.3
organization will have a minimum of 3 active clients. All clients can be active
simultaneously. They are:
1. The Development Client: This client is an instance of the organizational
processes and data that is used during development.
2. The Test Client: The development client is 'transported' to the Test Client,
a separate instance, where it is tested.
3. The Production Client: Following testing, the test client is migrated to the
production client, which is the one that users see and use.
Company Code. A company code is an independent accounting unit that
is, the organizational unit responsible for a sale, returns, and product liability.
A company code can have several sales organizations.
Distribution Channel. This is the means by which the product is supplied to
OR
3000
Distribution Channel
10
Division
00
Hit <Enter> to proceed to the order entry screen. GG represents the instructorassigned number of your group. Group 1 is 01, group 2, 02, and so on.
Customer #
8GG
Order Date
today's date
Customer PO#
po-ex1-GG
Item 1 Material
R-1150
Item 1 Quantity
10
Item 2 Material
R-1151
Item 2 Quantity
Click on <Header> to see details at the header level of the order, such as the
total price, sold-to party, the document currency, and the pricing structure for
the entire order.
Click on <Item> to see details of each item in the order. Data includes the
material number, item pricing, plant and storage locations, and the ship-to
address.
Click on <Schedule Lines> to see details of multiple schedule lines for an
item. Information provided includes delivery dates for each part of the item
quantity e.g., 10 items now and 10 later. It shows schedule line quantity and
confirmed quantity also.
Click on the <Save> Button to save the order. Record the assigned order #.
2.1
ORDER TYPES
There are several types of orders in R/3. In addition, the systems analyst can
create customized order types that behave in desired ways. The most common
type of order is the OR order type or standard order. Another order type is the
CS order type, which is a cash sale. Each order behaves differently in regard to
delivery times, billing, payments etc.
2.2
The various modules of SAP R/3 are interconnected, so that changes made in
one module "ripple though" to other modules. Checking available stock before
and then after the order is made is a way to demonstrate these interconnections.
To do so, use the path:
Logistics Materials Management Inventory
Management Environment Stock Stock Overview
(Transaction Code: MMBE)
Field
Value
Material
R-1150
Plant
3800
How much stock is available for orders and how much stock is scheduled for
delivery?
2.3
The objective of this exercise is to create a sales order, comprising two items: R1150 and R-1151. (GG is the group number.)
LogisticsSales and Distribution SalesOrderCreate
(Transaction Code: VA01)
Field
Sales Order
Value
OR (standard order)
Sales Organization
3000
Distribution Channel
10 (final sales)
Division
00 (cross division)
In the materials form, enter the two materials and quantities (15 and 5):
Material
Quantity
R-1150
15
R-1151
1.
2.
3.
4.
5.
dates.
6. View the document flow using the path: Environment Document Flow.
A Plant is a place where goods are made or distributed, while a Shipping Point
is a point from which goods leave the plant for the customer. It is also the start of
the route. Each plant can have many shipping points.
2.4
Checking
Field
Value
Material
R-1150
Plant
30GG
How much stock is now available for orders and how much stock is scheduled
for delivery? Does this differ from your initial inventory levels and why?
CREATING DELIVERIES
In the Customer Order Management (COM) Cycle, there are two ways to create
a delivery after the order is created. You may proceed through the main menu:
Logistics Sales and Distribution Shipping and Transportation
OutBound Delivery Create Single Document With Reference to a
Sales Order
(Transaction Code: VL01N)
Alternatively, within the order, go to:
Sales Document Deliver
This takes you to the delivery screen. There are three fields that must be
entered, namely, shipping point, selection date, and the order number.
Field
Value
Shipping Point
30GG
Selection date
Sales Order
The selection date is the date up to which you are looking for a delivery to be
made from the order. The standard order type in R/3, OR, is configured with a
delivery time of seven days, so the date must be pushed out to "catch" the
order's delivery.
The next activities in the creation of the delivery are to save and record the
delivery, and then examine the document flow of the order to see how the
delivery has been recorded by R/3.
1. Click on the <Save> Button to save the delivery.
2. A delivery number is generated and displayed at the bottom of the screen.
Record this number.
3. Create and/or switch to another session.
4. Pull up the order being processed using its order number:
10
11
3.1
After the delivery has been created, three activities are needed to complete the
delivery process within R/3. They are:
1.Picking. Here the factory personnel physically transfer the ordered goods
out of their storage location in readiness for shipping to the customer and
record this activity within R/3. Picking is mandatory for deliveries.
2.Packing. Some materials require packing within boxes, cartons, or other
enclosures prior to shipment to the customer.
Packing within R/3
documents this activity. This process is optional, as not every item requires
packing.
3.Post Goods Issue. This is the last of the three stages and occurs when the
goods leave the plant through a shipping point. At this stage, an accounting
document is created that is used for the next stage in Order Management,
Billing. Post Goods Issue is mandatory for deliveries.
Hit <Enter>
Check the following pick quantities in the Transfer Order:
Material
Pick Quantity
R-1150
15
R-1151
Delivery.
Click on <Post Goods Issue>. Write down the document number for the
accounting document generated.
13
3.2
Checking available stock after the delivery is completed to check if the amount of
stock slated for delivery has changed. To do so, use the path:
Logistics Materials Management Inventory Management Environment
Stock Stock Overview
(Transaction Code: MMBE)
Field
Value
Material
R-1150
Plant
30GG
14
PARTNER FUNCTIONS
Sold-to party. The sold-to party (or partner function)is the central partner
function through which all the other functions are referenced. The sold-to
party is the party that places the order and to whom sales and product prices
are recorded against (e.g., for reporting purposes).
Ship-to Party. The ship-to party is the party (and address) to whom the order
is shipped. Can the ship-to differ from the sold-to? Yes, the ship-to party
could be at a totally different location e.g., at a shipping/receiving location.
Bill-to Party. The bill-to is the party to whom the bill is sent. Again, the bill-to
can differ from the sold-to and ship-to. For example, it might be the accounts
payable department at the customer's company.
Payer. The fourth mandatory partner is the payer. The payer is the party that
pays the bill. This could again be an entity distinct from any of the three
parties, with a unique address.
4.1
This exercise involves identifying the business partners for customer 13GG. To
do so, create and/or use a new session and use the path:
Logistics Sales and Distribution Orders Change Order
(Transaction Code: VA02)
Menu: <GoTo> Header Partner
Examine and list the four major partner functions and any others that appear.
Use the matchcode to see the whole range of partner functions.
15
BILLING
The next stage in the COM (Customer Order Management) Cycle is billing. In
R/3, it is possible to perform order-related billing, delivery-related billing and
other types of billing. In billing, you can also:
5.1
The object of this exercise is to create a delivery-related bill for the customer and
transfer it to FI. The steps are as follows:
In one session, pull up the order and examine document flow using the path:
Environment Document Flow. Note the different processes shown in the
COM cycle.
Proceed to delivery related billing using the following path:
Logistics Sales and Distribution Billing Billing Document
Create.
(Transaction Code: VF01)
This brings up the Create Bill screen, with the delivery number shown in the
leftmost column. This is the column that holds the name of the document from
which the bill is created (in this case, the delivery).
Click on <Enter> to go to the bill creation screen. On this screen, the amount
16
APPLYING PAYMENTS
The final stage in the COM Cycle is payments. Payments are not applied in the
SD module, but more appropriately, in Financial Accounting (FI). In the FI
module, payments may be applied to one invoice or to several. Overpayments
and underpayments are also handled in different ways, as defined in
configuration.
6.1
Receivable
This takes you to the <Post Incoming Payments: Header Data> screen and
form.
Enter the following data:
Field
Value
Document Date
{Todays date}
Document Type
DZ (customer payment)
Company Code
3000
Posting Date
{Todays date}
Currency/Rate
USD
Value Date
{Todays date}
8GG
This takes you to the <Post Incoming Payments: Process Open Items>
screens. This shows the list of open items, i.e., open invoices requiring payment.
There should be one invoice requiring payment in the Open Items list. If there is
more than one invoice listed, make all the other invoices inactive in order to pay
on the relevant invoice. The process is as follows:
In the Open Items list, click on the line with the item to be made inactive.
17
Click on <Select Beginning> and then on <Select End>. Finally, click on the
<Inactive> Button.
Repeat the above process until only the desired open item remains active.
The total in the Assigned field should now equal the total of the open item,
and the Number of Items should equal 1.
The Amount Entered should equal the value in Assigned. If it does not, the
difference will appear in Not Assigned. A negative number means that the
customer has underpaid and this difference is still owed. A positive number
represents an overpayment, which is owed to the customer.
Enter the same value in Difference Postings. This represents an additional
customer payment or a refund to make up the difference.
18
FREE ITEMS
In sales, promotions are frequently run that give the customer a free item for the
purchase of a fixed number of items. In addition, sales representatives may have
the latitude to include a free item with a substantial purchase by a customer.
Sample items might also be included as free items within a purchase.
R/3 allows the salesperson to manually include a free item within order entry.
This is done by attaching the free item to another, paid item in the order using
the <higher-level item> field. In the example below, one free item, the MSI CDRW Drive(Material R-1151) is given free with the purchase of an MSI CD-ROM
Drive (Material R-1150).
7.1
Value
Order Type
OR {standard order}
Sales Organization
3000
Distribution Channel
10
Division
00
Hit <Enter>
Enter the following data:
Field
Value
Customer #
8GG
Order Date
todays date
Customer PO#
po-ex2-GG
Item 1 Material
R-1150
Item 1 Quantity
19
20
The standard order we have used in the preceding sections represents a sales
document that behaves in a specific way and has certain attributes.
For
example, when an order (type OR) is created, a delivery interval of 7 days is
proposed. When the order is saved also, the assigned order number falls within
a specific range. This range is also different from number ranges used by
deliveries (LF) and other document types. These ranges are stored within a
schema of document types in the IMG.
This chapter examines the structure of the order type, OR, as stored in the IMG
to better understand its configuration details and how they may be reconfigured
in response to business requirements.
8.1
To view the structure of the order type, use the following path:
Tools AcceleratedSAP Customizing Project Management SAP
Reference IMG
(Transaction Code: SPRO)
This takes you into the customizing area of R/3, where many of the maintenance
and configuration options of R/3 are to be found.
The SAP Reference IMG represents the initial unconfigured state of R/3s
structures and document types and is not changed in configuration. The SAP
Reference IMG is modified to meet the unique needs of the organization.
21
Number Systems.
General Control.
Transaction Flow.
Scheduling Agreement
Shipping.
Billing.
Requested Delivery Date/Pricing Date.
Contract.
8.2
22
Orders we have entered until now been the standard order type, OR. This has a
preset delivery duration, such as seven days. However, R/3 also includes other
order types to handle many other types of transactions, such as credit memos,
returns, product exchanges, and cash purchases. In this exercise, we will use
the cash purchase order type, CS as the order type for our transaction.
In a cash transaction, the customer must have an immediate delivery, as they will
be leaving the store with the ordered material. Therefore, a cash transaction
automatically generates a delivery, unlike the standard order type, OR.
9.1
To enter a cash order, create a new session or backtrack to the top of R/3s menu
structure and use the following path:
LogisticsSales and Distribution SalesOrderCreate
(Transaction Code: VA01)
Field
Value
Order Type
CS
Sales Organization
3000
Distribution Channel
10
Division
00
Value
Customer #
8GG
Order Date
today's date
Customer PO#
po-ex3-GG
Item 1 Material
R-1150
Item 1 Quantity
23
In this particular order, the customer is ordering a quantity of 1 of material R1150. The order date is today. Hit <Enter>. What message does R/3 give at the
bottom of the screen?
R/3 creates a delivery automatically with the order. The delivery number is
9.2
Billing works much differently in a cash sale (BV) than in a standard order. In the
latter case, delivery-based billing is used as freight charges and other transportrelated charges are required from the delivery. However, with a cash sale, an
invoice is automatically produced. This is in fact, a cash receipt for the customer.
To bill, use the following path:
Logistics Sales and Distribution Billing Billing Document
Create.
(Transaction Code: VF01)
This brings up the Create Bill screen, with the delivery number shown in the
leftmost column. This is the column that holds the name of the document from
which the bill is created (in this case, the delivery).
Change the delivery number to the order number for order-related billing.
24
Click on <Enter> to go to the bill creation screen. On this screen, the amount
9.3
RUSH ORDERS
Another order that is used within R/3 is the rush order, RO. This order is used
when a company must have the material right away, but wants the billing process
to follow the regular pattern. It is different from the cash order, BV, because,
although the material is picked up right away and a delivery created, no receipt is
generated for the customer. Billing occurs later using individual billing or a billing
due list.
In this exercise, we will use the rush order type, RO as the order type for our
transaction.
9.4
To enter a rush order, create a new session or backtrack to the top of R/3s menu
structure and use the following path:
LogisticsSales and Distribution SalesOrderCreate
Field
Order Type
Sales Organization
Value
RO
3000
Distribution Channel
10
Division
00
25
Field
Value
Customer #
8GG
Order Date
today's date
Customer PO#
po-ex4-GG
Item 1 Material
R-1151
Item 1 Quantity
In this particular order, the customer is ordering a quantity of 3 of material R1151. The order date is today. Hit <Enter>. What message does R/3 give at the
bottom of the screen?
R/3 creates a delivery automatically with the order. The delivery number is
9.5
Billing works similarly to that of a cash sale, BV, in that order-based billing is
used. Freight charges and other transport-related charges are not required as the
customer already picked up the item. However, unlike a cash sale, no invoice is
automatically produced.
To bill, use the following path:
Logistics Sales and Distribution Billing Billing Document
Create.
(Transaction Code: VF01)
26
This brings up the Create Bill screen, with the delivery number shown in the
leftmost column. This is the column that holds the name of the document from
which the bill is created (in this case, the delivery).
Change the delivery number to the order number for order-related billing.
Click on <Enter> to go to the bill creation screen. On this screen, the amount
27
To create an inquiry, create a new session or backtrack to the top of R/3s menu
structure and use the following path:
LogisticsSales and Distribution SalesInquiryCreate
(Transaction Code: VA11)
Field
Inquiry Type
Sales Organization
Value
IN
3000
Distribution Channel
10
Division
00
Value
Customer #
8GG
From Date
today's date
To Date
Item 1 Material
R-1150
Item 1 Quantity
28
Click on the <Save> Button to save the inquiry. Record the assigned inquiry #.
Some time after making an inquiry, the customer may call back to place an order
that may be based on the inquiry. They may not remember their inquiry number.
In that case R/3 automatically brings up stored inquiries (and quotations also). In
the next example, we will assume that the customer remembers the inquiry
number.
To create an order that references the inquiry, backtrack to the top of R/3s menu
structure and use the following path:
LogisticsSales and Distribution SalesOrderCreate with Reference
toInquiry
(Transaction Code: VA01)
inquiry#.
Check the document flow for the order. What does it show? {It shows that
29
Return to the <Inquiry> option in the Sales screen and create another inquiry
using the following data.
Field
Value
Customer #
8GG
From Date
today's date
To Date
Item 1 Material
R-1151
Item 1 Quantity
Item 2 Material
R-1150
Item 2 Quantity
In this case, the customer is placing an inquiry for 3 CDROM drives and 2 CDRW Drives. The object of this exercise is to determine the effect of partially
referencing an inquiry.
Create an order that partially references the inquiry using the following path:
LogisticsSales and Distribution SalesOrderCreate with Reference
toInquiry
(Transaction Code: VA01)
and <Delete Line Item>. This ensures the second material is not referenced.
Enter the purchase order number, po-in2-GG.
Click on the <Save> Button to save the inquiry. Record the assigned inquiry#.
30
Performing these actions means that the first line item in the Inquiry has only
been partially referenced. There should be a quantity of 1 remaining in that line
item. The second material (the CR-RW Drive) has not been referenced at all.
To attempt to reference the inquiry again, create another order that references
the inquiry using the path:
LogisticsSales and Distribution SalesOrderCreate with Reference
toInquiry
(Transaction Code: VA01)
In R/3, partially referencing an inquirys line item completely references that line
item, regardless of remaining quantities. However, other line items in the inquiry
may be referenced if they have never been referenced before. This behavior is
unique to inquiries, as we will see in the next section on quotations.
To create a quotation, create a new session or backtrack to the top of R/3s menu
structure and use the following path:
LogisticsSales and Distribution SalesQuotationCreate
(Transaction Code: VA21)
Field
Inquiry Type
Sales Organization
Value
QT
3000
Distribution Channel
10
Division
00
31
Hit <Enter> to proceed to the quotation data entry screen and enter the following
data:
Field
Value
Customer #
8GG
From Date
today's date
To Date
Item 1 Material
R-1150
Item 1 Quantity
Similar to an inquiry, the customer may call back to place an order referencing
the quotation. Again, they may not remember their quotation number, but again,
we assume that the customer remembers the quotation number.
To create an order that references the quotation, use the following path:
LogisticsSales and Distribution SalesOrderCreate with Reference
toQuotation
(Transaction Code: VA01)
32
quotation#.
Check the document flow for the order. What does it show? {It shows that
Return to the <Quotation> option in the Sales screen and create another
quotation using the following data.
Field
Value
Customer #
8GG
From Date
today's date
To Date
Item 1 Material
R-1151
Item 1 Quantity
In this case, the customer is placing an quotation for 4 headlights. The object of
this exercise is to determine the effect of partially referencing a quotation.
Create an order that partially references the quotation using the following path:
LogisticsSales and Distribution SalesOrderCreate with Reference
toQuotation
(Transaction Code: VA01)
33
When the order form comes up, change the material quantity for material; R-
Performing these actions means that the material in the Quotation has been
partially referenced. There should be a quantity of 2 remaining in that line item.
To attempt to reference the quotation again, create another order that references
the quotation using the path:
LogisticsSales and Distribution SalesOrderCreate with Reference
toQuotation
(Transaction Code: VA01)
34
11 PACKING IN DELIVERIES
Three of the major activities in deliveries are picking, packing, and post goods
issue, as earlier discussed. Packing is optional within deliveries, but is often
required for items that cannot be shipped as is. This section illustrates how
packing is accomplished within R/3.
In packing, a packing material is selected and then used to pack the ordered
item. In the above example, the customer ordered a motorcycle that came with a
free headlight. The objective of this exercise is to pack the headlight in a carton
(material PK-100) for delivery.
Create a delivery for the last order using the following path:
Value
PK-100
Hit <Enter>
Highlight the first rows of the Shipping Unit and Item group boxes.
Select menu option <Edit><Pack Item> to pack CDROM into the carton.
Save the delivery and examine the order or delivery document flow.
What is the Status assigned to Packing?
35
Field
Order Type
Sales Organization
Value
OR
3000
Distribution Channel
10
Division
00
Order 1:
Field
Value
Customer #
8GG
Order Date
today's date
Customer PO#
po-ex5-GG
Item 1 Material
R-1150
Item 1 Quantity
36
Order 2:
Field
Value
Customer #
8GG
Order Date
Today's date
Customer PO#
po-ex6-GG
Item 1 Material
R-1151
Item 1 Quantity
After the two orders above have been successfully entered, proceed to the
creation of the delivery due list using the following path:
Logistics Sales and Distribution
Value
30GG
{Today's date}
Ship-To
8GG
To ensure that the list is being prepared for the correct sales area, click on the
<organizational data> button. When the popup window appears, enter the
following data:
Field
Sales Organization
Value
3000
Distribution Channel
10
Division
00
37
Select menu option <Program><Execute> to see the delivery due list. The two
orders you created (along with other completed orders) is then displayed in a list.
The small boxes to the left of the screen shows all the orders highlighted,
select the orders you want delivered by clicking on the small box on the left of
each order.
Click on the <Save> icon to run the delivery due list.
In the log for delivery run screen, how many deliveries were created? Why?
(A single delivery was created, combining the two orders.}
38
13 QUANTITY CONTRACTS
AND
SCHEDULING AGREEMENTS
Quantity contracts are agreements between the customer and your company to
order specific quantities of a product within a set timeframe. The customer does
not provide any information about delivery dates, only the start and end date of
the contact. Quantity contracts are usually agreed to at discounts from totals if
priced individually.
A quantity contract is fulfilled when the customer places orders against it in the
contract period. These orders are known as release orders or call-offs.
However, they are standard orders that automatically reference the customers
quantity contract and reduce the remaining amount of product to be ordered
under the contract.
If the customer supplies delivery dates for the product, then it is preferable to use
a scheduling agreement, instead of a quantity contract. This is described in the
following section.
Contract Type
Sales Organization
Value
NMS {quantity contract}
3000
Distribution Channel
10
Division
00
39
Value
Customer #
8GG
Order Date
today's date
Customer PO#
po-ex7-GG
Valid-from
Valid-to
{todays date}
{three weeks from today}
Item 1 Material
R-1151
Item 1 Quantity
10
Value
OR
3000
Distribution Channel
10
Division
00
Click on the <Ref. To Contract> button to create the order with reference to
40
Field
Customer #
8GG
Order Date
todays date
Customer PO#
po-ex8-GG
Item 1 Material
R-1151
Item 1 Quantity
Field
Value
Value
Customer #
8GG
Order Date
todays date
Customer PO#
po-ex9-GG
Item 1 Material
R-1151
Item 1 Quantity
12
Cllck on <save> to save the order. What message do you get? Why?
The message says that the quantity contract has been fully exhausted. Adding 6
from the first order to 12 in the second order gives 18, which is 8 more than the
quantity on the initial contract. However, the order is not refused. The quantity
contract is exhausted, and another 8 of the items are added from inventory to the
order.
Try to open a 3rd order, referencing the quantity contract. Does it work? {No,
41
Value
DS {scheduling agreement}
3000
Distribution Channel
10
Division
00
42
Value
Customer #
8GG
Order Date
today's date
PO#
po-ex10-GG
Valid-from
{todays date}
Valid-to
Item 1 Material
R-1151
Item 1 Quantity
12
This specifies that the material R-1151 is required for a target quantity of 12 I the
scheduling agreement. The remaining task is to specify in the agreement the
exact dates on which the material should be delivered and in what quantities.
This is done by going to the schedule lines and entering the data there, as
follows:
Value
D
Four days from now
7
Value
d
Ten days from now
5
43
number.
44
Value
Shipping Point
30GG
Selection Date
Order
{scheduling agreement #}
Note that you are using a delivery date that encompasses both schedule lines
in your scheduling agreement. How many deliveries were created and why? 1
Save the delivery and note the delivery number.
Create a second delivery with the same data as above; save that delivery and
record the delivery number too.
Only one, because the delivery lines in the scheduling agreement have different
dates.
45
14 PRICING
Pricing is a very important function in R/3. It can also be very difficult to grasp,
but the underlying concepts are fairly straightforward. Prices for items are
determined primarily by a process called the condition technique. The
condition technique is so called because it works using a set of conditions or
elements that work together to determine the overall price for an item.
In R/3, the condition technique is used to organize and manipulate the main
elements that determine a materials pricing to result in an overall price that
includes the basic price, discounts, surcharges, and taxes.
The price of a line item (that is, a variable quantity of a material) is determined by
a combination of 5 elements. These are:
1.
2.
3.
4.
5.
The sold-to
The document type
The sales organization
The division, and
The distribution channel
The combination of these elements with the materials basic price determines the
total price of the items as sold to the user.
14.1 PRICING PROCEDURE
A price is determined for a material through the use of a pricing procedure, the
highest level element of pricing. Each item uses a specific pricing procedure,
determined by a unique combination of the five elements above. This selection
is set up in the Implementation Guide (IMG). To see how the pricing procedure
for transactions made in the sales area: 3000 (company code), 10 (distribution
channel), and 00 (division) is determined, use the following path:
46
Click on <Position>
Enter the following data:
Field
Sales Organization
Value
3000
Distribution Channel
10
Division
00
The pricing procedure is unique for the sales area, plus the document pricing
procedure key A, and the customer pricing procedure key 1. The document
pricing procedure key is in the header of the sales document, while the customer
pricing procedure key is in the customer master record. This adds up to the five
elements described previously. The field to the right of the pricing procedure is
the condition type automatically proposed by the system. We will deal with the
subject of condition types next.
14.2 CONDITION TYPES
Pull up a previously created order, one with the purchase order #po-10-2-GG.
Click in the box to the left of the item R-1151.
Select ItemPricing F7 from the menu.
Click on the <Analysis> button and examine the header of the next screen.
Which pricing procedure is being used?3
This selection illustrates the pricing for item # R-1151. In particular, the leftmost
column lists the different condition types used to price the material. Some of the
condition types shown are:
ZR00, a condition type that provides a basic or core price for the material.
K004, another condition type that provides a material discount.
Others that may be present include VPRS, SKTO, K005, K007. Each of
these speaks to a specific type of pricing discount. We will examine a more
comprehensive list of these condition types later.
Each of the condition types that may be used in sales documents is defined in
the IMG. For example, we may examine the PR00 condition type using the
following path:
Tools AcceleratedSAP Customizing Project Management
SAP Reference IMG Sales and Distribution Basic Functions
Pricing Pricing Control Define Condition Types Maintain
Condition Types
Click on <position>, type PR00 in the search field, and then press Return. This
takes you to the PR00 condition type. Highlight the entire line by clicking in the
<condition type> field, namely Price. Click on the < details> iconthe icon with
the magnifying glass. This takes you to directly into the structure of the condition
type. The following elements can be seen:
The condition type: PR00
The access sequence associated with the condition type, also PR00. Each
such as (core) price, surcharge or discount, tax etc. In this case, the type is
B, or price.
The calculation type describes how the value is measured e.g., by quantity,
by weight, or volume. The default for PR00 is C, signifying that the value is
quantity-dependent, not measured by volume or weight.
To recap, a pricing procedure is the overall method that determines a price for a
material. Each pricing procedure has one or more condition types, which
individually determine an aspect of pricing e.g., core price, discounts and
surcharges.
If we focus our attentions on the core price condition type, PR00, for example, we
already know that it has the associated access sequence, PR00. This access
sequence is simply the order which R/3 searches for a stored record to fulfil a
49
condition type. So, for example, we may determine the core price of a product in
various ways, such as; cost plus a percentage, competitors price, and activitybased costing. However, these would all be different prices, if stored within R/3.
An access sequence would specify how we searched for a core price throught
these three options. It might be (1) cost plus (2) ABC, and (c) competitors price.
If no data record was found for cost plus, then we would look for an ABC core
price. If no ABC price existed, then the competitors price might be sought out.
The sequence (1), (2), (3) represents the PR00 Access Sequence.
To examine the PR00 access sequence and the records searched by R/3, use
the following path:
Tools AcceleratedSAP Customizing Project Management SAP
Reference IMG Sales and Distribution Basic Functions Pricing
Pricing Control Define Access Sequences Maintain Access
Sequences
(Transaction Code: V/07)
Four accesses are shown in the list of accesses. They are accesses 10, 20, 30,
and 40. This implies that there are 4 possible records of core prices in the R/3
system, determined in different ways. Each of these records is called a
condition record. Note that the actual record is not stored in the IMG, only the
structure is. The fields that comprise this record, i.e., the structure, are
collectively referred to as the condition table. To view the fields of the first
condition table, perform the following:
50
For access 10, the customer/material access sequence, there are four fields that
comprise the structure of the condition table and will hold data values in the
actual condition record. These fields are:
1. Sales organization
2. Sold-to
3. Distribution channel, and
4. Pricing Reference Material (or material number)
If an actual condition record exists with an attached price, then this price will be
used first. However, if no record has been stored, then R/3 will check the record
represented by access #20.
Pricing procedures determine the price for a material. In 14.1, we saw in our
pricing analysis that procedure RVAJUS was used to determine the price for the
order. This procedure had several attached condition types, each of which had a
single access sequence. The access sequences simply specified the order in
which the search was made for condition records.
In the next set of exercises, we make use of the condition types, PR00, K005 and
K007 to illustrate how R/3 pricing works in practice. The first task is to compare
the definition of the RVAJUS pricing procedure in the order with the one in the
IMG.
51
Maintain
Pricing Procedure
(Transaction Code: V/08)
Click on <Position>, enter RVAJUS in the presented field
Press <Enter>
Click to the left of RVAJUS
Click on the <Control> button
This takes you to the layout of the RVAJUS pricing procedure.
52
Value
RE
3000
10
00
Note that the order type is RE, not OR. Next, we connect the return to the
originating order, using the following path:
Sales Document Create With Reference To Order
53
Using the Matchcode and search help A, enter the purchase order number in
the appropriate field.
54
document.} In another session, go back to the Return document and remove the
08 in the Billing Block field.
Execute the credit memo generation again and save.
Finally, the customer must be given the credit in Financial Accounting. In R/3,
note that customer credits as well as payments are handled in Accounts
Receivable.
Accounts Payable. Go to the appropriate location in FI from the top level of R/3
using:
Accounting Financial Accounting
Document Entry Incoming Payment.
Accounts
Receivable
55
This takes you to the <Post Incoming Payments: Header Data> screen and
form.
Enter the following data:
Field
Document Date
Document Type
Company Code
Posting Date
Currency/Rate
Bank Data: Account
Value Date
Open Item Selection: Account
Value
{Todays date}
DZ (customer payment)
3000
{Todays date}
USD
113100 (dummy Checking Account)
{Todays date}
8GG
This takes you to the <Post Incoming Payments: Process Open Items>
screen. In the list of open items, there should be one invoice requiring a credit in
the Open Items list. If there is more than one invoice listed, make all the other
invoices inactive in order to pay on the relevant credit memo. Thereafter, enter
the amount required to clear the credit memo. Note that it will have a ve sign as
it is a credit to the customer.
A credit memo is also treated as a type of order and handled in R/3s sales
function. In this instance, the customer may have received a product that was
damaged or ruined on delivery. Hence, it makes little sense to return the actual
product or material, given that the customers version of events is accepted. We
likewise assume that a previous order has been placed and credit is being
sought.
56
We will return the order created in Chapter 8, with the purchase # po-81-GG.
Notice that the transaction needed is the Credit Memo Request transaction, or
CR. To begin the Credit Memo Request process, use the following path:
Value
CR
3000
10
00
Note that the order type is CR, not RE. Next, we connect the credit memo
request to the originating order, using the following path:
Sales Document Create With Reference To Order
Using the Matchcode and search help A, enter the purchase order number in
the appropriate field.
57
15.4 BILLING
Since no goods are being returned, we go directly to Billing and create a the
actual credit memo, in order to give the customer credit for the material return.
From the topmost menu level in R/3, use the following path:
Accounts Payable. Go to the appropriate location in FI from the top level of R/3
using:
Accounts
Receivable
58
Field
Document Date
Document Type
Company Code
Posting Date
Currency/Rate
Bank Data: Account
Value Date
Open Item Selection: Account
Value
{Todays date}
DZ (customer payment)
3000
{Todays date}
USD
100000 (dummy Checking Account)
{Todays date}
8GG
This takes you to the <Post Incoming Payments: Process Open Items>
screen. In the list of open items, there should be one invoice requiring a credit in
the Open Items list. If there is more than one invoice listed, make all the other
invoices inactive in order to pay on the relevant credit memo. Thereafter, enter
the amount required to clear the credit memo. Note that it will have a -ve sign as
it is a credit to the customer.
59