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Basic Rules in SAP-Sales and Distribution Module
Sales Organization Distribution Channel Division Sales Area Plant and Storage Location: 2 . 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.Basic Rules in SAP-Sales and Distribution Module Sales Organization : 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: Means through which products and services reach the customer A distribution channel: • Defines responsibilities • Helps in achieve flexible pricing • Differentiate Sales statistics Division: • • A division is used to group products and services. A sales area can belong to only one company code.
A Standard sales transaction has the following flow: Inquiry Quotation Order Delivery Billing The customer order management cycle begins with pre-sales activities.Basic Rules in SAP-Sales and Distribution Module • • • 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 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 order in SAP contains: • • • • • Customer and material info Pricing conditions Delivery dates and quantities Shipping info Billing Info Inventory sourcing in SAP is taken care by • Availability check Shipping in SAP supports • • • • Outbound delivery creation Picking Packing Post Goods Issue 3 .
Basic Rules in SAP-Sales and Distribution Module Billing in SAP supports • • • • 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 Document A sales document is grouped into three structures • • • Header Item Schedule Line Outbound delivery A delivery document is grouped into two structures • • Header Item Several orders can be grouped into same outbound delivery if they have same • • • Picking • • A transfer order is created for an outbound delivery A transfer order is created for a warehouse number Shipping point Delivery date Ship-to.address 4 .
Basic Rules in SAP-Sales and Distribution Module Post Goods Issue When PGI is done the system • • • • Billing We can group deliveries into single billing document if the deliveries have same • • • Billing date Payer Destination Country 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 The effects of billing are • • • Debit on the customer receivables account and credit on sales revenue account is created Sales information system Sales statistics is updated Master data in SAP SAP SD has got the following main masters: • • • • • Customer master Material master Condition master Output master Customer material information master Customer master 5 .
Basic Rules in SAP-Sales and Distribution Module General Data Tab pages Address Control data Payment terms Marketing Unloading points Export data Contact persons Sales Area Data Tab pages Order Shipping Billing Partner functions Company Code data Tab pages Accounting Payment Correspondence Insurance The chart above shows detail on three main areas of customer master and the tab pages found under each area. Material Master is maintained in different views and important views of sales and distribution are • • • • • • Basic data 1 Sales Org 1 Sales Org 2 Sales : Gen/Plant Foreign Trade Sales text Sales document in Sales and distribution mainly controls: • • • • • Number range Item No increment Reference mandatory Item division Read info record 6 .
record of the sold-to –party b) Customer master record of the ship-to-party c) Material master record of the material Shipping point determination The following rule is used in determining shipping point in a sales order : Plant + Shipping condition (Sold-to-Party) + Loading group Shipping point Maintained in Material master Gen: Plant data Route determination Route determined using the following rule in Sales and Distribution (SAP) Departure Zone of Shipping Point + Shipping condition (Sold-to-Party) + 7 .Basic Rules in SAP-Sales and Distribution Module • • • • • • • • • • • Document pricing procedure Incomplete messages Alternative sales documents Delivery block Billing block Immediate delivery Delivery type Billing type Proposed delivery date Lead time for delivery Proposed pricing date Plant determination in Sales and distribution: To determine the plant in an order the system checks the master in the following order: a) Customer material info.
Sales document type + Item category group (Material master) + Item usage + Item category of higher level item Item category of the item Item category in a sales document mainly controls the following 8 . Item category controls the way in which item behaves in a sales document.Basic Rules in SAP-Sales and Distribution Module Transportation Group (Material master) + Transportation Zone (Ship-to-Party) Route Delivery scheduling: As name denotes delivery scheduling is scheduling delivery for an order and it carries the following important dates: • • • • • Material availability date Transportation planning date Loading date Goods Issue date Delivery date Availability Check in SAP: • • Availability check is carried out at item level for a plant Availability check 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 determination in the order: Item category denotes the category to which the item belongs and the following rule is used for determination of item category.
the pricing procedure for the particular order is determined. Once an order is entered taking into consideration some major factors.Basic Rules in SAP-Sales and Distribution Module • • • • • • • • • • • • • • 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 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: Item category + MRP type(Material Master) Schedule line category mainly controls: • • • • • • Delivery Block Movement type Item relevant for delivery Req/Assembly Availability Product Allocation Schedule line category Copy Control: Copy control is normally set for • • • Header Item Schedule line levels To control copying procedure we have • • • Data transfer routines Copying requirements Switches Pricing Procedure determination: Pricing is an important component in SAP-SD. The major factors taken into consideration for pricing procedure determination is: 9 .
you can define for a price that the SAP System first searches for a customerspecific price and then for a price list price. The data part contains the actual message. Create new access sequences by copying a similar access sequence and changing it according to your needs. there is a condition record in the table. • Actions 1.Basic Rules in SAP-Sales and Distribution Module Sales area + Customer Pricing procedure(Customer Master –Sales area data) + Document Pricing Procedure(Sales Document Type) Pricing Procedure What are the components of pricing procedure? How is that a person should work on Pricing Procedure? To start with first Define a Condition table: What is a condition table? A table where the key fields are data combinations for which messages are triggered (and offered for processing). Maintain the accesses for the access sequence by specifying the condition tables in the desired sequence. Do not change access sequences contained in the standard SAP R/3 System. Recommendation • If you define your own access sequences. 10 . Specify an alphanumeric key which may have up to 4 digits and a textual description. As mentioned above a condition table is a table which carries key fields for picking up the prices. For each data combination. the key should start with the letter Z since SAP reserves this letter for the standard system. 2. 3. Define Access Sequences The access sequence is a search strategy which the SAP System uses to search for condition records valid for a condition type. you define the priority of the accesses. For example. With the sequence. Check to what extent you can use the access sequences contained in the standard SAP R/3 System. You can display combinations of key fields using possible entries.
Generating the accesses is no longer necessary as of 3. define whether a discount is calculated as a percentage or a fixed amount using the condition type. The condition records you create are based on customer data from the document header and material data from each document item. discounts. Price elements are represented in the SAP system by condition types. different condition types are used to distinguish between a discount that refers to a net price and a discount that refers to a gross price. • You can change the outcome of pricing in the sales document manually. however. You can limit options for changing a condition type in this IMG step. for example. In this case. taxes or. Recommendation • If you define your own condition types. Do not change the condition types which are contained in the standard SAP R/3 System. • Actions 1. prices. this would mean that the system would needlessly search through every available item for 98% of your customers. for example. Price elements can be.0. Normally. 11 . you define which fields the SAP system checks when searching for a valid condition record. Check to what extent you can use the condition types contained in the standard SAP R/3 System. You can generate the accesses manually. as this is carried out automatically. freight. Note • The pricing procedure groups all condition types together which the SAP system is to automatically take into account during pricing for a business transaction (see the section "Define and assign pricing procedures").Basic Rules in SAP-Sales and Distribution Module 4. if required. Define Condition Type A characteristic of a condition. Remember that you can only specify manually in a document those condition types which are contained in the pricing procedure. The discount is only valid for 2% of your customers. by choosing "Utilities". and are stored in the system in condition records. pre step would improve system performance. the key should start with the letter Z since SAP reserves these letters for that purpose in the standard system. you use a customer-material discount. Thus. in pricing. surcharges. For example. You specify an access sequence in every condition type. Example In pricing. You can.
Otherwise. Do not change the pricing procedures contained in the standard SAP R/3 System. Then you will only have to maintain condition records for the reference condition type. To determine the procedure. Specify an access sequence for the condition types. Define Pricing Procedures The pricing procedure defines the conditions permitted for a document and the sequence in which the system takes these conditions into account during pricing. 3. Define the document pricing procedures for determining the procedure. Specify an alphanumeric key which can have up to 4 digits. you can define the upper and lower limits for the value of a condition at condition type level. and a textual description.Basic Rules in SAP-Sales and Distribution Module 2. 4. A standard pricing procedure is defined in the standard SAP system. the system makes un neccessary accesses to conditions. This way. 5. define the allowed combinations of: o o o o Shipping: Sales area Customer pricing procedure Document pricing procedure Pricing procedure 12 . or tax. Create new pricing procedures by copying a similar pricing procedure. 3. One reason for creating a new condition type is you may require a calculation rule for a discount which is not available in the standard system. Afterwards define the customer determination procedures for determining the procedure. In addition. These include material prices. SAP Recommendation • Define your own pricing procedures which contain only those condition types which you use. Maintain the lines of the pricing procedure 2. o o Specify a key with up to 6 characters and a description. you limit the amounts or the scale values in the corresponding condition records. • Actions 1. You do not need to specify an access sequence for header conditions. Create new condition types by copying a similar conditions type and changing it according to your requirements. and surcharges. such as freight. It contains conditions most commonly used. discounts. For a procedure. Maintain the detail screen of the condition type. Assign the procedure to the sales document types and billing types. specify the condition types in the sequence of their usage. You can also assign a reference condition type if the condition types you are working with are similar.
packing material / item Order required Delivery item category controls: • Check min delivery • Availability check • Relevant for picking • Storage location required • Determine storage location • Automatic batch determination • Text determination procedure Billing: Billing is the last phase in the SD process .cards • Output determination procedure Account Determination in SAP Account determination in SAP-SD happens with the following rule Sales Organization * Chart of Accounts * Account assignment group –Customer * Account assignment group-Material * 13 . Billing document has got the following structure: • • Header Item Billing documents mainly control: • No.Basic Rules in SAP-Sales and Distribution Module 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.Billing is the phase where the major integration of SD and FI Module happens. range • Posting block (Controls posting to accounting) • Relevant for rebate • Account determination procedure • Account determination recon account • Account determination pay.
Basic Rules in SAP-Sales and Distribution Module Account Key G/L account on which the postings has to happen. 14 .