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A report submitted to Delhi Business School, New Delhi and WEBCOM as a part fulfillment
MBA and PGP in entrepreneurship and business





Anoop kumar soni

Mr. Santosh Jena

DBS/08-10/S-064

SAP consultant (SD)

Sec: B

WEBCOM

Internal Guide:
Mrs. Sweta Seth





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I Anoop kumar soni here by declare that The project report on the topic Effectiveness of SAP in
SD is the topic under my c !!"!# which I have done in my PGP
specialization provided by DBS, New delhi in the collaboration with WEBCOM And I have
completed it in the given time period. All the data taken on this project is true in all my
knowledge.


Anoop kumar soni

DBS/08-10/S-064
Delhi business school
New Delhi- 110044

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Perseverance, Inspiration and Motivation have always played a key role in the success of any
venture. Working on this project was a challenge. It is often difficult to understand wide
spectrum of knowledge without proper guidance and advice.
I wish to express my gratitude to mrs. Sweta maam (Senior lecture Delhi business school) and
Santosh Jena (SAP consultant SD, WEBCOM) who assigned me the project. He has been
constant source of guidance and encouragement in exploring the nuances of the project. He took
special interest in the study and gave me his pertinent suggestion.
I would like to thank Administration and members of Delhi business school who gave me a
golden chance of SAP training.
I strongly like to say thank to the Administration and consultants of WEBCOM for providing
there support and sap configuration in the college campus.
Here a special thank to Mr. santosh Jena for intellectual stimulation. Moral support and constant
source of inspiration throughout the project and gratefully acknowledge this assistance and
inspiration given to me by him

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(  )

This project report deals with the use of SAP SD module for the marketing in any
organization. It contains the definition of the, enterprise structure, organization
management, sales organization. In enterprise structure we define the company, company
code, sales area and shipping point and the assignment of these areas with the company
code. We also define the distribution channel; division .Integration of subgroups is done.
In sales order cycle, we show how the sales process takes place in any organization.
In this report we also show all related transaction codes and path in the enterprise
structure, master data, sales document style, sales order cycle. We have also given the
different screen shots of different paths and features.










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!!
 #!.

*+,

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1 Introduction

2 Advantage and disadvantage

2.1Advantage

2.2 Disadvantage

3 Why SAP

11

4 Understanding the SAP system landscapes

14

5 ASAP methodology

16

6 Comparison of SAP and ORACLE

22

7 Implementation of SAP in SD

25

8 Enterprise structure

26

9 My enterprise structure

27

10

10 Definitions

31

10.1 Company

31

10.2 Company code

31

10.3Creation of new company

32

11

11 Assignment

44

12

12 Master data

51

12.1 Material master data

51

12.2 Customer master data

58

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12.3 Partner determination

62

12.4 Customer

64

13 Pricing and Condition

69

13.1 Pricing Control

69

14 Sales document style

77

14.1 Sales order cycle

81

14.2 Order

84

14.3 Outline agreement

85

14.4 Contract

86

14.5Schedule agreement

87

15 Out bound delivery

89

15.1 Billing

90

16

16 Findings

92

17

17 limitation

93

18

18 Conclusion

94

19

19 Bibliography

95

13

14

15




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SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the
world's third-largest independent software vendor. The original name for SAP was German:
Systeme, Anwendungen, Produkte. It means "Systems Applications and Products." The goal of
the company was to provide large enterprise customers with the ability to interact with a
corporate database in real-time. Today, the company states that its goal is "to offer the industry's
most comprehensive portfolio of business performance and optimization solutions for companies
of all sizes."
SAP's first software application was a financial accounting software suite that ran on
a mainframe and was known for its stability. It eventually became known as the R/1 system. The
"R" stands for real-time. During the 1980s, the company went international, and the second
iteration of the R system (R/2) accommodated different languages and currencies. In the 1990s,
the third iteration (R/3) moved from the mainframe to a client/server three-tier architecture
composed of a database, software applications and a common graphical user interface (GUI).
SAP used the name R/3 until the 5.0 release. At that time the name was changed from R/version
to ERP Central Component (ECC). The most current version as of November 2009 is ECC 6.0.
When the Internet became pervasive, SAP responded by providing companies with the software
they needed to sell goods and services online. Their product portfolio got a Web interface and
was rebranded MySAP.com. MySAP was designed to be a corporate Web portal with role-based
permissions for employees . The company promoted how SAP "solutions" could link commerce
conducted over the Internet (e-commerce) with traditional bricks and mortar commerce to
provide one seamless view of the business. Next came SAP NetWeaver, the companys
development and integration platform and middleware component, and Business Suite, a
bundling of SAPs enterprise resource planning (ERP), customer relationship management
(CRM), supply chain management (SCM), product lifecycle management (PLM) and supplier
relationship management (SRM) applications. In 2008, SAP purchased Business Objects, a
French enterprise software company that specializes in business intelligence (BI), which marked

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a major change in the companys BI strategy, which was previously focused around SAP's
Business Explorer tools.
Current products include:
SAP NetWeaver - service-oriented technology platform (SOA) for integrating information and
business processes across diverse technologies and organizational
structures. NetWeaver provides the foundation for other SAP software bundles.
SAP Business Suite - software applications for large organizations and international
corporations. The applications support core business operations such as supply chain
managment, warehouse management, sales, customer relationship management and
administrative functions. SAP offers software for 25 vertical industries, including banking,
insurance, chemicals, healthcare, retail and consumer products.
SAP Business All-in-One solutions, SAP Business ByDesign and SAP Business One - software
products that address the needs of small and mid-market companies.

- ! ",.,!"c /0!+* ,!122# #,
Technology playing a major role in today's business environment. So many companies and
corporations have adopted information technology on a large scale by using Enterprise Resource
Planning (ERP) systems to accomplish their business transaction and data processing needs. And
in this technology SAP R/3 plays a significant role when compared with other similar tools.
ERP system takes a lead role because of some of the following reasons
Many large corporations use several different and separate information systems, often because
they have merged with and/or acquired other companies with varied systems. An ERP system
integrates these separate information systems and results in improved data reliability and
processing efficiency. ERP systems are not only used by large corporations but becoming
popular with small to mid-sized companies also.
Simplify business transaction processing and thus work load is reduced.

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- ! ", !, - ! ",.c

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34!" !
Integration can be the highest benefit of them all. The only real project aim for implementing
ERP is reducing data redundancy and redundant data entry. If this is set as a goal, to automate
inventory posting to G/L, then it might be a successful project. Those companies where
integration is not so important or even dangerous tend to have a hard time with ERP. ERP does
not improve the individual efficiency of users, so if they expect it, it will be a big
disappointment. ERP improves the cooperation of users.
[4..+!+
Generally, ERP software focuses on integration and tend to not care about the daily needs of
people. I think individual efficiency can suffer by implementing ERP. the big question with ERP
is whether the benefit of integration and cooperation can make up for the loss in personal
efficiency or not.
04,+!
It reduces cost only if the company took accounting and reporting seriously even before
implementation and had put a lot of manual effort in it. If they didn't care about it, if they just did
some simple accounting to fill mandatory statements and if internal reporting did not exists of
has not been fincancially-oriented, then no cost is reduced.
-4 ,,*,!!#
Same as above. Less reporting or accounting personnel, but more sales assistants etc.
54++ +
No. People are accurate, not software. What ERP does is makes the lives of inaccurate people or
organization a complete hell and maybe forces them to be accurate (which means hiring more
people or distributing work better), or it falls.
, - ! ",
346*!,-
This entails software, hardware, implementation, consultants, training, etc. Or you can hire a
programmer or two as an employee and only buy business consulting from an outside source, do

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all customization and end-user training inside. That can be cost-effective.

[4
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it depends. SAP can be configured to almost anything. In Navision one can develop almost
anything in days. Other software may not be flexible.














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SAP ERP delivers a comprehensive set of integrated, cross-functional business processes. With
SAP ERP, you can gain the following benefits:
*- #"!!., ", !* !,
Run your enterprise in accordance with strategy and plans, accessing the right information in real
time to identify concerns early.
Pursue opportunities proactively.
Achieve corporate objectives by aligning workforce and organizational objectives.
Find the best people and leverage their talent in the right job at the right time.
*-*+- !!,"2
Leverage self-services and analytics across your organization.
Improve operational efficiency and productivity within and beyond your enterprise.
++,,2"2!+ ,.#6#
Use enterprise services architecture to improve process standardization, efficiency, and
adaptability.
Extend transactions, information, and collaboration functions to a broad business community.
**+2 !"!"!,9!,

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Take advantage of the SAP NetWeaver platform's latest open, Web-based technology to
integrate your end-to-end processes seamlessly.
+,:
Solve complex business challenges today with SAP, your trusted partner for long-term growth,
with 30 years of experience working with organizations of all sizes in more countries than any
other vendor.
Join SAP's world-class partner network, uniquely qualified to support the best business practices
in more than 25 industries.
*-.! !+ # ! "! !+* "-! !+
Gain deep visibility into your organization with financial and management accounting
functionality combined with business analytics.
Increase profitability, improve financial control, and manage risk.

*;,*!!"
Integrate and optimize business processes.
Eliminate high integration costs and the need to purchase third-party software.
Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce
costly borrowing.
& !2"2
. ,
Install SAP ERP using rapid-implementation techniques that cost less than half what traditional
approaches cost.
Leverage preset defaults and prepackaged versions available for specific industries.

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 !**.,
Retain your top performers through clearly defined career and development plans.
Link employees performance to compensation programs such as variable pay plans and longterm incentives.
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Give employees new ways to access the enterprise information required for their daily activities.















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What exactly is SAP System Landscape? How does this phenomenon differ from SAP System
Architecture? In this posting, I intend to answer the above mentioned, closely related questions
in a very concise manner, with particular emphasis on the system landscape of SAP. Often times,
SAP users, especially new comers misunderstands the two concepts.

The SAP architecture is typically the technology framework of the SAP system. SAP's
architecture unlike the system landscape has changed over time (and more recently) with the
advent of SAP ECC.
In a priorposting, I "x-rayed" they system architecture of SAP R/3.

They system landscape basically is the set-up or arrangement of your SAP servers. Ideally, in an
SAP environment, a three-system landscape exists. A three-system landscape consists of the
Development Server-DEV, Quality Assurance Server-QAS and the Production Server-PROD.
This kind of set-up is not primarily designed to serve as server clusters in case of system failure,
the objective to enhance "configuration pipeline management".

*+ #c2<, !,+ *

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At this juncture, it is important to state that a test system - Sandbox can also exit separately. The
essence of the sandbox is to test the configuration of the business processes of a company,
especially at the inception of the project (before the Business Blue Print is signed). It can also
serve as a practice environment, even after go-live.

Pipeline is the environment where the configuration in the development system is moved to the
quality assurance system and finally to the production system. The whole idea is to ensure that
the configuration of these systems is in sync at any point in time. Suffice to say that,
configuration/changes are first made in the Development system, thoroughly tested in the
Quality Assurance system before been loaded into the production (Live) system.

This approach throws up the transport management system concept. Transport management
system is the coordination of the movement of objects and configuration changes from the
development system to the Quality Assurance system and then to the Production system. At
times, this sequence of movement is not possible, especially in cases where an SAP note
mandates that changes be made directly on the production system.

In such rare cases, objectively confirm that the change transport cannot be performed. Very
likely, your system must have been configured to"not modifiable"(a system locking strategy
that enforces the three-system landscape change transport rule); unlock the system by changing
the global setting option to"modifiable"using transaction SE03. After you have done that, effect
the change(s) on the system. Immediately lock the system back by changing the global setting
option to"not modifiable"using transaction=0. Replicate the changes on the other system.
Note that transaction-can also be used to lock the system so that client dependent and
independent configuration changes are not carried out directly on the production system.

By and large, the SAP system landscape ensures that the integrity of data is enhanced via
enforcing a controlled configuration changes effect on the target system - production.
Previous Entry/Next Entry
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The implementation of your SAP System covers the following phases:

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In this phase you plan your project and lay the foundations for successful implementation. It is at
this stage that you make the strategic decisions crucial to your project:
Define your project goals and objectives
Clarify the scope of your implementation
Define your project schedule, budget plan, and implementation sequence
Establish the project organization and relevant committees and assign resources
,!,,#*!
In this phase you create a blueprint using the Question & Answer database (Q&Adb), which
documents your enterprises requirements and establishes how your business processes and
organizational structure are to be represented in the SAP System. You also refine the original
project goals and objectives and revise the overall project schedule in this phase.

 #; !
In this phase, you configure the requirements contained in the Business Blueprint. Baseline
configuration (major scope) is followed by final configuration (remaining scope), which can
consist of up to four cycles. Other key focal areas of this phase are conducting integration tests
and drawing up end user documentation.

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! #c*  !

In this phase you complete your preparations, including testing, end user training, system
management, and cutover activities. You also need to resolve all open issues in this phase. At
this stage you need to ensure that all the prerequisites for your system to go live have been
fulfilled.
& -?**
In this phase you move from a pre-production environment to the live system. The most
important elements include setting up production support, monitoring system transactions, and
optimizing overall system performance.
#!,.2!*,+
The enterprise structure consists of the following elements:
#!
R/3 System clients have an independent status both in legal and organizational terms. The clients
within the system can be distinguished by a three-character, alpha-numeric code and are defined
in Customizing.
When your R/3 System is installed, it is set up with two clients:
#!===
Client 000 is the SAP standard client. The SAP original system is held in this client. Client 000
contains default values for all tables. SAP updates the default values with every system upgrade
and release upgrade.

You are !allowed to work in this client.

#!==3
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The content of this client is the same as the 000 client. You can do your customizing in this client
in order to adjust the standard system to your requirements.
Clients are a technical structural feature of an R/3 system. The system makes a distinction
between client-independent and client-dependent elements. Client-independent elements are
objects that are used in all clients. Client-specific elements are objects that are only used in a
specific client.
The following objects are defined as client-independent:
^

data structures, such as field definitions, table structures, and file set-ups

client-independent tables

transactions

programs

Standard reporting

Authorization objects

R/3 library

The following objects are defined as client-dependent:

^

client-specific tables that must be copied from the original client, that is, client 000

HR master records

user master records

Authorization profiles

customer-specific programs

The following factors must be taken into consideration when you decide whether or not to create
a client:
^

You have to adapt the system client-specifically to the enterprise structure.

You cannot access personnel data in other clients. Each clients personnel data is
protected from unauthorized access.

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You cannot perform reporting across all clients, and you cannot receive or assign clientindependent access authorizations.

You cannot exchange data between clients.

If an employee moves between two clients, you must assign him or her a new personnel
number.

* !+
Within a client the company code represents the highest level of the enterprise structure. In
Customizing, the company code is defined by a four-character, alpha-numeric code.
If the Controlling, Financial Accounting, Materials Management or Sales and
Distribution application components are set up in addition to the Personnel
Administration component, you must set up the company code so that it also meets their
requirements. This is not tantamount to a restriction: You define all of the HR Systems most
important control data at the level of the personnel subareas, and these levels belong to Personnel
Administration.
In Personnel Administration, the company code has the following control functions:
^

The company code is used to generate default values for data entry, for example, an
employees payroll accounting area.

The company code is a selection criterion for reporting.

The company code constitutes an authorization check unit.

At the company code level, the following control features are assigned which are relevant
for Personnel Administration:
^

the default country key for the employees personal data, address data, and bank data.

a default value for the currency key for employees basic pay.

a language code for text output, for example, employee remuneration information.

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This language code is not the same as the logon language, which determines the language used in
the on-line system.
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Personnel areas divide a company code into sub-units. The individual personnel areas in a
company code are defined in Customizing and have a four-digit alpha-numeric identifier.
The personnel area has the following functions:
^

The personnel area is used to generate default values for data entry, for example, an
employees payroll accounting area.

The personnel area is a selection criterion for reporting.

The personnel area constitutes an authorization check unit.

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Personnel subareas are a subdivision of the personnel area. Organizational control of the main
HR subareas, namely the pay scale and wage type structures and work schedule planning, takes
place at the personnel subarea level. In Customizing, the personnel subarea is defined by a fourcharacter, alpha-numeric code. The respective country-specific control features are stored here.
The personnel subarea has the following organizational functions:
^

Specifying the country grouping; this controls the dialog for entering country-specific
personnel data and the setting up and processing of wage types and pay scale groups
in payroll accounting; within a company code, the country grouping must be
unambiguous

Assigning a legal entity to differentiate between the individual companies from a legal
point of view

It specifies groupings for Time Management. This enables you, for example, to set up
work schedules, substitution types, absence types, and leave types on the basis of a
specific personnel subarea.

The personnel subarea is a selection criterion for evaluations.

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The personnel subarea is used to generate default values for pay scale area and pay scale
type for an employees basic pay.

It specifies the public holiday calendar.

Defining personnel subarea-specific wage types per personnel area

It assigns a legal person for payroll accounting.
















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SAP

ORACLE

 Germany

 USA

 The largest vender of

management
software;
 Third-largest
independent software
company
 ERP (including
Financial, Human
Resource, etc)
 Customer
Relationship
Management
Software
 Enterprise
Performance
Management
Software
 Internal Audit&
Compliance Software
 Supply Train
Management
Software
 Business Intelligence
 NetWeaver Tech
Platform
 Core System
 Policy
Administration
System
 Claim
Administration
System
 Reinsurance
Administration

 The largest vender of

data base software
 Second largest
independent software
company
 Oracle
 Oracle Business
Intelligence
(Financial)
 PeopleSoft
 Data Base Software
Siebel Client
Management Software
 Hyperion Enterprise
Performance
Management Software
 BEA middleware
products
 Oracle business

No core system for

insurance
industry. To purchase
thirdparty
software vender to
fulfill the project

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**

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! !+
,

2
!+!

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System
 Commission
Administration
System
 Billing& Payment
Administration
System
 Insurance Industry
Client Relationship
Administration
System
 Financial Assets
Administration
System
 ERP
 IBM
 Accenture
 PWC
 Financial
Accounting
 Management
Accounting
 Capital Management
 Asset Management
 Financial Reporting
Platform
 Budget Management
 Expense
Management
 Financial
Performance
Management
 Audit Information
System
 GRC
 New-Version Budget
planning
 Software package
includes system
performance monitor,
Backup& Restore,
System function, etc

6


 
 Oralce Financial
 OFSA
 I-Expense
 Treasury
 Hyeperion

 There is no System
function in the
software
package

 Not based on module  Base on module

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!. +
1!
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!2 !+!

 !! !+
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,**
-#*
!" "
   ,

*!+

c# .

 Financial accounting
and
management
accounting
are independent, to
support cost
management and
analysis in more
efficient way
 Management
accounting
is flexible
 Experienced in
interface
between bank and
insurance
 Business user
capability
 Easy

 User accounts&
licenses
will also be taken into
price consideration
 Complicate in COA
setting, not flexible

 There is no expense
allocation function
 No such experience

 IT capability
 Not very easy

 Configuration can
satisfy
many enhancement
requirement
 User orientation

 Many enhancement
Need
to be developed

 SAP worldwide
technical support
 Java
 Open-SQL
 IBM DB2
 Oracle
 MS SQL
 Yes

 Oracle worldwide
technical support
 Java

 IT orientation

 Oracle
 No





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1. SAP Labs is the research and development organization of the parent company. SAP has
its development organization spread across the globe. Many, but not all, labs locations are
hosting SAP Research groups.
2. SAP customer support, also called Active Global Support (AGS) is a global organization
to provide support to SAP customers worldwide.
3. User Groups are independent, not-for-profit organizations of SAP customer companies
and partners within the SAP Ecosystem that provide education to their members,
influence SAP product releases and direction, exchange best practices, and provide
insight into the market needs
4. In 2007, the SAP User Group Executive Network (SUGEN) has been established to
foster the information exchange and best practice sharing among SAP User Groups and
to coordinate the collaboration with SAP for strategic topics.
5. Partnerships are core to SAPs strategy and in its 35 years of history the network of
software solution providers, value-added resellers, distributors, technology and services
partners has developed into a broad ecosystem that is among the industry's largest.









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centerprise structure is organizational structure that represents an enterprise in SAP R/3

system. It consists of some organizational units which, for legal reasons or for other specific
business-related reasons or purposes, are grouped together. Organizational units include legal
company entities, sales offices, profit centers, etc. Organizational units handle specific business
functions.


We must set the enterprise structure correctly in the first place. The change of it usually requires
a great effort and very time consuming. To set it up correctly we must have a comprehensive
knowledge about the business processes and how to map it to SAP configuration.

A specific organizational unit is defined by a specific function or module in SAP. Company code
is defined by FI module. Plant is defined by Logistics function. Storage Location and Purchasing
Organization are defined by MM module.
In SD module we have to define Sales Organization, Distribution Channel, and Division. We
have an option whether to use Sales Office, Sales Group, and Sales Person or not.
!*,,++!,,,..##1!"+*!!,

Company












Company Code
Credit Control Area
Sales Organization
Distribution Channel
Division
Sales Office
Sales Group
Sales Person
Plant
Storage Location
Warehouse




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It is the primary screan in SAP. When we login in the SAP the first window appeas that is called
SAP easy access screan (figure 1)

(figure 1) easy access screan

,,!",+ !
When we type SPRO the new window apears which called customising screan (figure2)


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Img screan is reffered as implementation guide. (Figure3)









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A +* ! is an organizational unit in Accounting which represents a ,!,," !; !
according to the requirements of commercial law in a particular country.In the SAP system,
consolidation functions in financial accounting are based on companies. A company can
comprise one or more company codes.
When you create a company you should bear in mind the following points relating to group
accounting:
^

If your organization uses several +#!,, the companies which only appear as groupinternal business partners, and are not operational in each system, must be maintained in
each client. This is a precondition for the account assignment of a group-internal trading
partner.

Companies must be cataloged in a list of company IDs which is consistent across the
group. The parent company usually provides this list of company IDs.

It is also acceptable to designate legally dependent branches 'companies' and join them
together as a legal unit by consolidation.


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A Company Code is a unit included in the balance sheet of a legally-independent enterprise.
Balance sheets and Profit and Loss statements, required by law, are created at company code
level. The Company Code is the smallest organizational unit for which we can have an
independent accounting department within external accounting, for example, a company
within a corporate group (client). In SAP, a company code is represented by a unique 4-digit
alpha-numeric for a specific client.



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 !.!1+* !

In SAP when we go for the practicle field we have to customise the SAP according to the need of
client the first step in the customising process is to create a new company as per the ne
SAP Easy Access: SPRO Sap Reference IMG Enterprise Structure Financial Accounting
Edit, Copy, Delete, Check Company Code.
Follow the above defined path and double click on edit, copy, company code then goto copy
button and copy your company code from 1000
Or we can also go directly in this screen by using T code EC01 Now the next step is to make
initial changes in the company code the path is
Edit, copy, company data then double click on position and search company code then enter and
highlight your company code go to in new entry and make initial changes save the changes go
back in the address fill the detail finally save the document
Or we can use Tcode-OX02
Now the next step is to check or verification of your company by using T code OBY6
Now, creations of the company go to Define company make new entry give company details
save it and back.




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Complete address and details of comp.

Company
Company Code

Nokia
NKIA

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A plant is the place of production or simply a collection of several locations of material stocks in
close physical proximity. A plant is represented by a unique 4-digit alpha-numeric for a specific
client. Plant is used in Material Management (MM), Production Planning (PP), and Plant
Maintenance (PM) module. A plant is assigned to one company code.
The plant is embedded in the organizational structure as follows:
^

The plant is assigned to a single +* ! +. A company code can have several
plants.

Several , "#+ !, in which material stocks are managed can belong to a plant.

A single ,!,,  is assigned to a plant and to a -,!.

A plant can be assigned to several combinations of , #," !; !and ,!

+2 !!#.

A plant can have several shipping points. A shipping point can be assigned to several
plants.

A plant can be defined as a  !! !+*# !!!"*# !

The Path is
Spro
IMG
Enterprise structure
Definition
-Financial accounting
Define Copy, Edit, Check Plant
Copy, delete, check plant

Logistics

then go to copy option showing as below :


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Now go to define plant and search your plant to make initial changes go to address and give
required changes

Save your plant

Plant
Plant Code

Nokia Delhi
NKIA

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Division is a way to group materials or services. A wide range of materials or services can be
divided into divisions. A material or service is always assigned to just one division.
In SAP SD, the use of divisions allows us organize our sales structure around groups of similar
products or product lines. We can define a division-specific sales structure. Within a division, we
can also carry out statistical analyses or devise our own marketing strategies.
In order to adapt the functional scope of a division to the organization in your company, you
should process the following check list:
^ Allocate a division to one or more , #," !; !,.
^ Allocate a division to one or more ,!+2 !!#,.
^ Allocate a business area to a division from a plant. This way, business area account
assignment can be carried out for transactions in Materials Management. As of Release
3.0, the business area is determined in Materials Management from the division and the
valuation area.
^ A material is always assigned to one division only.
^ Define master data within a division for customers as well as your own +!!, and
pricing.
^

Create shared customer master data and conditions, which apply to several divisions,
using a common division.

^ Define sales offices for a division.

^

Define for each sales document type that all items of a sales document must belong to
the same division.

^ The items of a delivery or a billing document can belong to different divisions.

^ The division is used as a selection criterion for lists of sales documents and the work list
for deliveries.

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SPRO
img enterprise structure
defines, copy delete, check division

definition

financial accounting

logistic

Define division
In this step we will only define division not to copy go to new entry and define division

Division
Division Code

Nokia division
NK

 
&@


Sales organization is the basic organizational element in SD. All sales documents are created
for a sales organization. Sales organization can be defined based on:

^ Division of sales function of the company based on

^ Geography or sub-businesses of the company
^ Any other sales criteria. Sales organization is defined as a 4-digit alpha numeric code
with external numbering.

The above sales organizations have been created because of following considerations

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^ Within a sales organization, you can define your own master data. This allows a sales
organization to have its own customer and material master data as well as its own
conditions and pricing.
^ Define sales document types within a sales organization.
^ A sales organization is the highest summation level (after the organizational unit
Client) for sales statistics with their own statistics currency.
^ To sum it up, the zonal nature of the organization structure is mapped using sales
organizations.
The path is
Spro
img---enterprise structure
definition
financial accounting
sales and
distribution
define copy, delete, check, sales organization
copy delete check sales
organization
Go to define sales org. and find your sales org. by checking in position select whole line of your
sales org. and go to address to make changes

Sales Organisation
Sales Organisation Code

Nokia Sales Organization

NKSL

 

7

 
Distribution Channel is an organizational unit that represents the channel through which the
materials or services reach the customer, such as wholesale channel, direct sale channel, retail
channel, etc.
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A distribution channel can be assigned to one or more sales organizations.

In order to adapt the functional scope of a distribution channel to the organization in your
company, you should process the following check list:
^

Allocate a distribution channel to one or more , #," !; !,.

Allocate one or more *# !, to a distribution channel.
Within a distribution channel, you can define master data for customers or materials as
well as conditions and pricing.

Create master data for a representative distribution channel which is then also used in
other distribution channels.

For a distribution channel, determine sales document types.

Determine sales offices for a distribution channel.
All items of a sales document belong to a distribution channel. The entire sales document
is therefore entered for a distribution channel.

The items of a delivery can belong to different distribution channels.

All items of a billing document belong to a distribution channel.

The distribution channel can be used as a selection criterion in lists.

You can determine the printer destination for messages differently for every distribution
channel on the basis of the sales and billing documents.

The path is
Spro
img
distribution

enterprise structure
definition
define copy delete check dist. Channel

financial accounting
define dist channel

sales and

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Distribution Channel
Distribution Channel Code

Nokia distribution channel

ND


&



A Storage Location is a storage area comprising warehouses in close proximity. A Storage
Location is represented by a unique 4-digit alpha-numeric for a specific plant. Material stocks
can be differentiated within one plant according to storage location (inventory management).
Storage locations are always created for a plant.A , "#+ ! is the place where stock is
physically kept within a plant.
A storage location has the following attributes:
^

There may be one or more storage locations within a plant.

A storage location has a description and at least one address.

It is possible to store material data specific to a storage location.

Stocks are managed only on a quantity basis and not on a value basis at storage location
level.

Physical inventories are carried out at storage location level.

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A storage location can be assigned to a 1 2,! in the % 2,

 ! "!, . You can assign more than one storage location to the same
warehouse number within a plant.

Storage locations are always created for a plant.

The path is
Spro
img
management

enterprise structure
definition
maintain storage location

financial accounting

material

Storage location:

Storage location
Storage location code

Nokia Store
NKSL


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The ,2**!" *! is the highest-level organizational unit of shipping that controls your
shipping activities. Each outbound delivery in the SAP system is processed by one ,2**!"
*!4
The ,2**!" *! can be a loading ramp, a mail depot, or a rail depot. It can also be, for
example, a group of employees responsible (only) for organizing urgent deliveries.
You assign a shipping point in the SAP System at plant level. A shipping point is a physical
place and should be near the delivering plant. More than one shipping point can be assigned to a
plant.

We can also assign several plants to a shipping point in the SAP system.
In order to adapt the functional scope of a shipping point to the organization in your company,
we should process the following check list:
^

The shipping point is the top level in the organization for shipping.

A shipping point can be allocated to several *# !,.

A shipping point can be divided into several # !"*!,.

A delivery is always initiated from exactly one shipping point. Thus, all items of a
delivery belong to one shipping point. Groups of deliveries also belong to exactly one
shipping point.

The shipping point can be proposed automatically during order processing depending on
the plant, loading group and shipping condition.

A shipping point has an address.

The shipping point is used as a selection criterion for lists of deliveries and the work list
deliveries.

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The shipping point is used as a selection criterion for processing deliveries like printing,
picking or goods issue.

The path is
Spro
img
enterprise structure
definition
financial accounting
execution
define copy delete check shipping point

logistics

Shipping Point
Shipping Point Code

Nokia Shipping Point

NKSP



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&


Now the next and very important step is to assign all the codes with each other making the
assignment in all required fields:
,,"!*# !+* !+
In the step "Assign plant to company code", you assign each plant to a company code.
A plant can only belong to one company code
The paths are
Spro
img
enterprise structure
assign plant to company code

definition

assignment

logistics general

,,"!, #," !; !+* !+

You can use this step to define the allocation of sales organizations to company codes. This
establishes a link between the SD and FI systems. A sales organization belongs to just one
company code.



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,,"!,!+2 !!#, #," !; !

In this

step, you allocate the distribution channels to a sales organization. In this case, as many
distribution channels as desired can belong to a sales organization. In addition, a distribution
channel can be valid for several sales organizations.
The path is same as above

,,"!-,!, #," !; !

In this step, you allocate as many divisions as desired to a sales organization. Any one division
can belong to several sales organizations.
The path is same as above

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,,"!, #," !; !<,!+2 !!#<*# !

Use this step to assign any number of plants to a combination of sales organization and
distribution channel. A plant can be assigned more than once.

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Now go to business area account assignment for defining rules by sales area
.! #, #, 
For business area account determination, you have to define for each sales area the rules
according to which the SAP System should find a business area.
Note
If you do not specify a rule for a sales area, account determination cannot be carried out
for each business area.
^ Currently you cannot change the rules for determining the business area in Customizing
^

The path is
Spro
img
assignment

definition

assignment

sales and distribution

business area account

Define rules by sales area

Then give position
.

Now in the same path next step

Assign business area, plant, and distribution click position and give business area (0001)

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,,"!,!,, c# ! !-,!

In this IMG activity, you assign one business area to each of the combinations of plant and
division for automatic business area account assignment.
The SAP System then finds the corresponding business area for account assignment using plant
and item division in the case of revenue postings.


The next step in the same path

Assign business area by sales area
,,"!,!,,  #, 
In this IMG step, you assign business areas to sales areas for automatic business area account
determination.
The system then finds the corresponding business area for account assignment using the sales
area for:
^

Revenue postings

Value postings due to material movements

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Now the final assignment of s&d module

Assignment of shipping point to the plant

Spro

img

enterprise structure

logistic execution

assign shipping point to plant

,,"!,2**!"*!*# !
In this step, you can allocate as many shipping points as desired to the plants. Any one shipping
point can belong to several plants.


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+2+:2 ,,"!!,+
t-code is /NEC01
/nec01 ---structure----navigation












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 ,  
  # ,
!." !"  #
3 tabs---1 basic data tab
2 sales data tab
3 account tab

MATERIAL MASTER DATA


Division is a field in the material master data (it can be input/edited on Basic Data 1 view by
MM01/MM02 t-code). Thats why a material is always assigned to just one division.
A material can be sold through one or more distribution channels in one or more sales
organization. To allow it, we have to maintain the material master data for each combination of
sales organization and distribution channel.

We can set different data of a material for each combination sales organization and distribution
channel, such as: minimal order quantity and minimal delivery quantity data. By doing so,
for example, a material must be ordered by customer minimal 1000 PC for wholesale channel
and 10 PC for retail channel (assumed we only have one sales organization).

  # ,

It is a Master file which contains information of a particular material, depending upon the views
selected from the user departments.
Different types of views available in Material Master Record are
1. Basic data 1 & 2
2. Purchasing
3. General plant data storage 1 & 2
4. Warehouse Management 1 & 2
5. MRP (Material required planning) 1,2,3,4
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6. Accounting 1 & 2
7. Costing 1 & 2
8. Quality Management
9. Plant Stock
10. Storage Location Stock
11. Classification
12. Forecasting
13. Purchase Order Text
14. Foreign Trade: Import Data
  #*
It is a key that assigns the material to a group of materials such as Raw materials, trading goods.
This allows you to manage different materials in a uniform manner in accordance with your
company's requirements.
The Material type defines certain attributes of the material and has important control functions
,
When creating a material master record, the material type determines:
whether the material number is assigned internally or externally
from which number range interval the material number comes
which screens are displayed
the order in which screens are displayed
which department-specific data is displayed for the user to enter.

..!  #*, - # #

ROH - Raw Material
FERT - Finished Product
HALB- Semi finished Product
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HAWA- Trading goods

DIEN - Services
ERSA - Spare Parts
PIPE - Pipeline material
LEIH - Returnable Packaging
HERS- Manufacturer Parts
FGTR - Drinks
FOOD- Foods
FRIP - Perishable Goods
!." #  #,$ Configurable materials are materials that can have different
variants. For example, an automobile can have different types of paintwork, trim, and engine.
!,2*+,  Finished products are produced in-house. Since they cannot be
ordered by Purchasing, a material master record of this material type does not contain purchasing
data.

!<,+:  #,

&Non-stock materials are not held in stock because they are
consumed immediately.

!<- #   #,

% Non-valuated materials are managed on a quantity basis, but
not by value.

c +: "!"  #,  c Packaging materials are used to transport goods and come with
the goods free of charge. A material master record of this material type is managed on both a
quantity basis and value basis.

1  #,
7 Raw materials are always procured externally and then processed. A
material master record of this type contains purchasing data, but not sales data since they cannot
be sold.

.!,2*+,7  Semi finished products can be procured externally and

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manufactured in-house. The company then processes them. A material master record of this
material type can contain both purchasing and work scheduling data.

-+,
 Services can be performed internally or procured externally (outsourced).
They cannot be stored or transported.

* * ,  Spare parts are used to replace defective parts. They may be kept in stock.
A material master record of this material type can contain purchasing data, but not sales data

The path isSap easy access
create (general)

logistics
material management
create material

material master

material

Or direct by
T codes of creating material (MM01)
^ After following path, select Industry Sector & Material Type andPress Enter.
^ When you create a material master record, you are required to classify the material
according to industry sector and material type.

^
^

^
^
^

!,+
Key that specifies the branch of industry to which the material is assigned.
Now select the required nine tabs as:
1. Basic Data 1
2. Basic Data 2
3. Sales: Sales Org. Data 1
4. Sales: sales Org. Data 2
5. Sales: General/ Plant Data
6. General Plant Data Storage 1
7. General Plant Data Storage 2
8. Accounting 1
9. Accounting 2
Then Click on Organization levels select Views & Press Enter.
Enter Plant & Storage Location then Press Enter.
After entering the window will open containing nine required fields like basic data 1,
basic data 2, storage location 1, storage location 2, general plant, accounting information
etc.
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Fields in different views in Material Master

1. Basic Data 1
^
^
^
^
^
^
^

Material Description
Basic Unit of Measure
Material Group
General item category
Gross Weight
Net Weight
Volume etc

2. Basic Data 2
^ Contains Design Drawing information.
3. Sales: Sales Org. Data 1
^ Plant
^ Division
^ Storage Location
4. Sales: Sales Org. Data 2
5. Sales: General/ Plant Data 1
6. General Plant Data Storage 1
^ Basic Unit of measure
^ Storage location
7. General Plant Data Storage 2
^ Plant
^ Gross weight
^ Net Weight
8. Accounting 1
^
^
^
^
^
^
^

Basic Unit of Measure

Price control
Price unit
Currency
Moving & Standard Price
Total Stock
Total Value
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^ Division
9. Accounting 2
After entering all the required information save the data and the material will be generate




 
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The next step in master data is to post the good or transfer of goods
 !,.c,!".&,<3
After loading group we have to transfer goods to the storage location and use the Transaction
Code 34
Write Document and Posting dates and Movement type 501 and Enter.
Window will open write the Material and quantity and Enter and then save it. After that the
document will be posted and ten digits code will be generated
The path is /NMB1C
Give document date, posting date, movement type, and storage location


+:/
- We can see our stock in the storage location by using the Transaction Code MMBE
- After filling the material, plant and Storage location click on Execute button, we can see our
stock




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%



  
To create a customer master data you have to maintain atleast 3 required mandatory fields
These fields are
1 General data- address, fill data, all other fields can be left blank
2 sales area data- in sales customer pricing procedure, shipping- delivery priority shipping
condition, billing- in co terms, terms of payments tax documents partner function
3 company code data- acct. mgt reconciliation account terms of peyments

CUSTOMER MASTER DATA

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In the SAP System, all business transactions are posted to and managed in accounts. You must
create a master record for each account that you require. The master record contains data that
controls how business transactions are recorded and processed by the system. It also includes all
the information about a customer that you need to be able to conduct business with him.
c*  !,. !", ,  
In the following steps, you make the settings for preparing to create customer master records. To
do this, you need the following objects:
^

 !"
The number range determines the number interval from which the account number for the
master record is to be selected. The account number must be assigned when creating a
customer master record. Using the number range, you also determine whether the
numbers are assigned internally by the system or externally by yourself.

++!"*
The account group is a grouping of properties which control the creation of master
records. It determines which fields have to be or can be filled when creating the master
record. A number range is allocated to the account group. The type of number assignment
and a number interval are determined using it. Accounts which require the same master
record fields and use the same number range are created using the same account group.

#, ,
The field status definitions determine the status of the fields on the screens for the master
data. You define the status dependent on the account group. You can also determine the
status dependent on the processing type (transaction) and on the company code.

To do this, you should consider the following:

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How many number ranges do you need for your customer master records?
For the size of the number intervals, you should try and take into consideration not only
the current customer master but also future developments.

How many account groups do you need?

You must create at least one account group if you do not use the groups available in the
standard system.
The number of number ranges gives you an initial clue as to the number of account
groups. Your number ranges are allocated to the account groups. If you have determined
that you require several number ranges, then you must create at least as many account
groups so that you can use the number ranges.
The number of account groups which you need also depends on whether you use these
groups for the layout of the screens. For example, in the standard system two account
groups are recommended: one group for standard accounts and another group for onetime accounts.

Should the screen fields have a special field status dependent on the account group?
This status can depend on
p the company code in which the master record is created
p the transactions with which the master record is processed.

.!++!&*,12+! ,,

In this step, you determine the account groups for customers.
You can also define reference account groups for one-time accounts. You can use these to
control the fields of the one-time account screen so that, for example, certain fields are displayed
as required fields or are hidden.
When creating a customer account, you must specify an account group. You can specify a
reference account group under "Control" in the "General data" part of a one-time account's
master data. If you do not specify a reference account group, then, as previously, all fields of the
one-time account screen are ready for input during document entry.
You use the account group to determine:
^

the interval for the account numbers

whether the number is assigned internally by the system or externally by the user (type of
number assignment

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The path is
Spro
img
financial accounting
acct receivable and acct payable
customer
acct
master data
preparation for creating customer master data
define acct group
with screen layout
position acct group(ZAG2)
*,
^ Find ZAG2 from positions and then copy as.
^ Give your account group and name.
^ Go to general data and double click and select address.
^ Select name 1/ last name and tick the required entry tab.
^ Select company code data, then account management and then tick required entry of
reconciliation account.
^ Select payment transaction then terms of payment and then tick required entry.
^ Select sales data, then sales and then tick required entry in pricing procedure.
^ Select shipping then tick required entry of shipping conditions.
^ Select billing then billing and incoterms and tick required entry in both.




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My new customer account group

Account group
Name

NKBB
Nokia Bulk Buyer

Next step is in to go
/nxd01 and click on general data, address, and required entry

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There are a no of mandatory fields which we have to check for required entry
Like in company code data we have to choose reconciliation acct
The next step is to assign no. range to customer account group
,,"!


!",,++!&*,

In this step we assign the number ranges we created in the preceding step to the account
groups for customers. We can use one number range for several account groups.

D

Group
Name
Number range

NKBB
Nokia Bulk buyer
02

Now set up partner determination

c !! !
In the following menu options, you define the rules according to which automatic partner
determination is to be carried out.
When creating a customer master record, the SAP System proposes the allowed partner functions
to be maintained. According to the rules defined here, the partners are adopted from the customer
master records of the sold-to parties into the sales and distribution documents.
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You have to edit the following points for the function "Partner determination":
^

Partner function
You define with the help of the partner function which functions exist for the partners (
customers, vendors, employees, and so on) in your system.

Partners allowed for each account group

You allocate the permitted partner functions to every account group customer.

Function conversion
You can define the key of the partner functions according to the language.

Partner object
Partners are possible in the customer master record and the so-called partner objects in
the sales and distribution documents . Select a partner object and define the rules for
partner determination for this object.

Partner determination procedures

You define partner determination procedures which contain all the allowed partner
functions for every partner object.

Procedure allocation
You allocate each partner determination procedure to an actual partner object using a key,
for example, to an account group customer or a sales document type.

Partners are contained both in the customer master records and in the sales and distribution
documents . You define partner determination for each of these objects individually.
The following partner objects exist:
^

customer master record

sales document
p header
p item

delivery
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p header
^

billing document
p header
p item

sales activity

After defining the partner functions, select one partner object after the other and define the
partner determination procedures for the selected object.
Only when you have checked and, if necessary, changed the partner determination for all the
partner objects is the function "Partner determination" completed.
Note on tranport interface
In the transport, all objects maintained for partner determination are transported. In the
correction which is created for the transport, you can check the table entries and delete the
entries which are not to be transported.
Path is
Sales and distribution
determination

basic function

partner determination

set up partner

Double click on set up partner determination for customer master data

Then double click on acct group function assignment



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Give partner determination

Now the next step is to create new customer

T code is XD01

,
Business partner from whom receivables are due as a result of services rendered. Examples of
these services are:
^
^
^

Goods delivered
Services performed
Rights transferred

Customer master data is maintained on four tabs for the following three views:
^

General data
p General data for customers

Company code data

Sales area data

A) Sales
B) Shipping
C) Billing document
D) Partner

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Give name and details of the customer,

Click on company code data
Reconciliation acct 140000
Click on payment transection
Give terms of payments
Click on sales area data
Give customer pricing procedure
Shipping condition
Billing document
Incoterms
Terms of payments


Account group
Customer number

Nokia bulk buyer

0000100186



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Now maintain shipping point determination

2**!"c! !&, +-!"c!! !
For each item, the SAP System determines the shipping point when processing a sales document.
You can change the shipping point in the sales document manually. Shipping points are
maintained in Customizing in Section "Create shipping point".
The specification of a shipping point is required for creating a delivery for an order item.
The automatic determination of the shipping point depends on the following criteria:
^

delivering plant of the item

The delivering plant is automatically determined by the SAP System in the sales
document item, on the basis of the ship-to party and the material. You can manually
change the delivering plant of an item.

Shipping conditions of the sold-to party or the sales document type

Loading group of the material

In the following menu options, you define the shipping conditions, the loading groups and the
rules for the shipping point determination. In addition, you can specify a shipping condition for
particular sales document types.
,,"!2**!"c!,
In this menu option, you allocate the shipping points to the desired combinations of shipping
condition and loading group for each plant.
2**!"+!!,
01 As soon as possible
10 Immediately
Path is
Spro
img
logistics execution
shipping
basic shipping function
point and goods receiving point determination
assign shipping point

shipping

Go to position cursor
Give shipping condition 01, loading group, and plant

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Then enter and remove 1000 from shipping point and give your own shipping point

Shipping condition
Loading group
Plant

01
0001
NKIA

Again same procedure for shipping point determination for 10 (immediately)



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The Pricing function is a method of determining prices using the condition technique. SAP
Enterprise Buyer uses Pricing when purchase documents are being created, for example, when a
shopping cart or purchase order is created. The system automatically determines the gross price
and any surcharges and discounts that apply to a specific vendor according to defined conditions.
The system uses the gross price and these surcharges or discounts to determine the net price.
Pricing consists of the following elements:
^ !!*
A condition type serves to differentiate between prices in the system. You can define a
separate condition type for each type of price, surcharge or discount that may arise in your
business transactions. The condition type defines, for example, a discount as a fixed
amount or as a percentage.
^ ++,,9!+
An access sequence is a search strategy with which the system looks for valid data for a
specific condition type. You can define an access sequence for each condition type. In
Enterprise Buyer the access sequences are predefined, changes are not intended to be made
by customers.
^ !! #
A condition table contains price information on a master data type, for example, on a
product master. If you define a product price or a special discount, for example, you create
condition records in the relevant condition table.


There are two types of pricing internally

And Externally
c+!"!#
The following steps describe how you should set up pricing control in the system.
You should be familiar with the pricing criteria before making the necessary settings for pricing
in the SAP System.
Check how prices as well as surcharges and discounts are created. For example, determine
whether different prices apply to individual customers or customer groups and how surcharges
and discounts are calculated.

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Check whether separate pricing is carried out for individual business transactions. You may levy
specific freight surcharges for rush orders, for example.
Specify at what point in time prices are determined (e.g. for sales promotions, price increases,
etc.). Also clarify who is responsible for determining prices.
Afterwards, adjust your pricing dependencies to the pricing criteria in the SAP System. To do
this, see the following steps.
   




  
  


.!!! #,
In this IMG activity, you define price dependencies. You can make prices, surcharges, and
discounts dependent on almost all the fields in a document. You define these dependencies using
the condition tables. In a condition table, you define the combination of fields for which you can
create condition records


Condition Table no.

578

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Now generate no. of fields

Long key word

Select a field clicks on generate then yes
Go to local object and generate table




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.!++,,9!+,

You define access sequences in this IMG step.
The access sequence is a search strategy which the SAP System uses to search for condition
records valid for a condition type.
For example, you can define for a price that the SAP System first searches for a customerspecific price and then for a price list price.
Path is define access sequence

maintain access sequence

New entry give access sequence enter then saves

Name
Code

Nokia access sequence

NKNK


 

 
     
   



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#$      

.!!!*,
You define condition types in this step.
Price elements are represented in the SAP system byg condition types. Price elements can be, for
example, prices, surcharges, discounts, taxes or, freight, and are stored in the system in condition
records.
You can, for example, define whether a discount is calculated as a percentage or a fixed amount
using the condition type.
You specify an access sequence in every condition type. Thus, you define which fields the SAP
system checks when searching for a valid condition record.

The path is
Spro
img
sales and distribution
define condition type

basic settings

pricing

pricing control

Maintain condition type

Select your own condition type highlight the line and copy it
Give your own condition type and access sequence then enter and save

Condition types
Name

NKNK
Nokia Condition Type

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Now define and assign pricing procedure

Maintain pricing procedure and go to new entry
.! !,,"!c+!"c+,
You define the pricing procedures in this step. In addition, you assign the pricing procedures to
the transactions by defining the following dependencies:
^

Customer

Sales document type

Sales area

In the pricing procedure, you define which condition types should be taken into account and in
which sequence. During pricing, the SAP System automatically determines which pricing
procedure is valid for a business transaction and it takes the condition types contained in it into
account one after the other.
The determination of the procedure depends on the following factors:



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NKNK
K004
K007

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Nokia Pricing procedure
MATERIAL
CUSTOMER DISCOUNT

1.!*+!"*+! !
Go to new entries
Give all the details and then enter and then save
Give sales organization
Distribution channel
Division

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Pricing procedure
Condition types

Nokia pricing procedure

Nokia Condition Types




 

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In the following menu options, you define the control data for the various +!*, in
sales. The control data refers to:
^

Document types

Item categories

Schedule line categories

You also define the following for the sales documents in the subsequent menu options:
^

Possible order reasons

Possible reasons for rejection

Various blocks

Various order types

Number ranges
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+*#2, les document style

Documents are 1 sales order document
2 delivery doc
3 billing doc
Quotation

qt

Order

or

Rush order

ro

Cash sales

cs

Inquiry

in

Contract

nms

Schedule agreement

ds

The path is
Img
sales and distributions
area to sales doc type

sales

sales doc

sales doc header

assign sales

Double click
Then double click on combine sales org then click on position give ales org name then save it


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Reference sales organization

NKSL

Now double click on combine distribution channel

Give sales organization name

Reference Distribution Channel

ND

Now combine division

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Reference divisions

NM
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Sales org
NKSL
NKSL
NKSL
NKSL
NKSL
NKSL
NKSL

Distribution
channel
ND
ND
ND
ND
ND
ND
ND

Division

Sales order types

Description

NM
NM
NM
NM
NM
NM
NM

OR
RO
IN
QT
CS
NMS
DS

Standard order
Rush order
Inquiry
Quotation
Cash sales
Quantity Contract
Scheduling agreement









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34 
A )
It is a customer request to the company for the quotation for distributing goods and services.
 !.!9 33 A new Inquiry is created only when the authorized person at
Depot receives an Inquiry from an existing or new Non Trade Customer
The path for inquiry
Sap easy access

logistics

sales and distribution

sales

inquiry

T code is VA11
Inquiry type IN
The required details to create an inquiry is inquiry type IN


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One inquiry no. will be generate

Material
Inquiry no.

Pager
10000135

1"9 !
It is an offer to customer for specific area.
The path is
Easy access

logistics

sales and distribution

sales

quotation

Or use T code VA21

Give quotation type QT
Your sales organization then enter
Give sold to party
Valid date material and quotation quantity
Then double click on your material and follow the same as in inquiry

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Material
Quotation no./ Offer

Pager
20000138

It will generate a quotation no.

[
 
We need customer material information, price information about financial statement of items.
Delivery date and the quantity, and shipping information of customer.
1.  !. #,
.  , =3 A Sales order is created when a
purchase order is got from the Trade Customer.
2.  !. #,
12.!+ A !
!< +, =3
A Sales Order created when a Purchase Order received from the Customer w/out reference to
a Quotation
3.  !. #,
.#-.  #. !2* =3 A
delivery from another Depot directly to Customer shall be created on the Decision of the
Depot In charge.

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^
^
^
^
^

Customer and material information.

Price information about financial statement of an item.
Delivery date and Quantity.
Shipping information.
Billing information.

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1. Sold to Party: Party who placed the order.
2. Ship to Party: Party who receives the order.
3. Bill to Party: Party who receives the invoice.
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4. Pay to Party: Party who pay the bill.

The path is
Sap easy access

logistics

sales and distribution

sales

order

T code is VA01
We give order type OR
We give all the required things like before as in inquiry and in quotation we will follow the same
process
It will generate an order no.

Material
Standard order

Pager
8347


0
 
& 

It can be of two types:
1. Scheduling agreement
2. Contract


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The difference between contract and schedule agreement is as follows

Contract
1 no schedule
2 validity period
3 doc. Type NMS
4 t code VA41

Schedule agreement
Schedule line
Validity period
Do. Type DS
T code VA31
-

 
Contract is where you have a contract with the vendor, may be a for a predetermined quantity or
predefined value. So every time you need the material, we need to make PO ref the contract
asking for the delivery of the material. In such instance when PO is ref with contract its called
contract release orders or call off orders.
The path of contract
Easy access

logistics

sales and distribution

contract

T code VA41
Give contract type nms
We will give sold to party then Po no. validity dates material then double click on material then
click on shipping give storage location click on condition give condition edit on incompletion
log save the doc. It will generate a contract no

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Material
Quantity contract

Pager
40000110


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&& 

Scheduling agreement is a long term purchase agreement, where you will keep issuing
the delivery schedules whenever there is a change in requirement or at predetermined
time intervals. The delivery schedule can be on hour/daily/weekly/monthly basis. But it
will contain different zones viz. firm/tradeoff/Forecast. Firm zone schedules are
confirmed requirement and need to be taken by ordered party. Tradeoff zone requirement
is to purchase the raw materials and ordering party is liable to pay raw material cost, in
case of requirement cancellation. Forecast zone requirement is to help the vendor to plan
his requirements.
SA is also an agreement with the vendor for the supply of material, may be a quantity or
value. The delivery dates will be maintained in ME38 ref the SA which are called
delivery schedules. So you can maintain the delivery schedule and communicate the
vendor on Forecast basis or JIT basis. And when you need some more material then will
only create SA deliveries using ME38. SA could be of 2 types:- without release
documentation-system will transmit the delivery info to the vendor once you save the
document.


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Path is
Sap easy access

logistics

sales and distribution

sales

schedule agreement

T code is VA31
Give schedule agreement type
Sales area, division and distribution channel
Then enter and give Sold to party validity material give quantity and enter
Double click on material click on shipping give storage location click on condition give
condition type then schedule agreement and give delivery date and order quantity then
incompletion log and save the doc

Material
Scheduling agreement

pager
30000072

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   )
We can create an !#- in a ,2**!"*! for orders that are due for
delivery. The SAP System copies the relevant data from the order (one or many order) to the
outbound delivery.%+ !+ !,- #!#-,.24%+ !
#,+!,.,- #,!!!#-4
#-c+,,
1. Order number
2. Confirmation date
3. Shipping point
The path is
Sap easy access
out bound delivery

logistics
create

sales and distribution

single document

shipping and transportation

T code VL01N
We have to give shipping point

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Give selection date that will be same as order date

Click on picking
See the status give pick quantity that will be same as delivery quantity
Enter status will be changed

Order
Delivery number

8323
80011344

Click on post goods issue

If there is any error log then go to goods movement data
Change the doc. Date
And enter it will generate anew delivery no
Now we do

##!"
Billing represents the final processing stage for a business transaction in sales and distribution.
Information on billing is available at every stage of order processing and delivery processing.
This component includes the following functions:
^ Creation of
I. Invoices based on deliveries and services.
II. Issue Debit and Credit memo.
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^
^
^
^

III. Pro forma invoices.

Cancel billing transactions.
Comprehensive pricing functions.
Issue rebates.
Transfer billing data to Financial Accounting (FI).

The [path is]

Easy access
create

logistics

sales and distribution

billing

billing document

T code is VF01

Material
Billing document

Pager
90033120







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!!",

^ Enables you to build repeatable business processes, and to automate your processes
^ Enables you to build repeatable business processes, and to automate your processes
^ Allows you to implement complex business processes
^ Takes care that each step of your workflow is assigned to the right person
^ It is tightly linked to Business Object Repository
^ Workflows can be started whenever a predefined event occurs
^ You can use an existing organizational structure to have the relevant users carry out the
Individual activities
^ You can run detailed reports on the workflow process itself, such as how often each
workflow was executed, what was the average execution time, how long did it take
people to react to items in their inbox, etc.
^ For each step, you can define deadline monitoring
^ Many SAP applications such as ERP, CRM, SRM, and others, deliver predefined
workflows.
^ You can either use them without any changes or do minor changes according to your
^ Companys requirements. This significantly brings down implementation time.
^ There is a huge number of existing knowledge on SAP Business Workflow worldwide.

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^ the SAP Business Workflow can do external calls, however it works best and is mainly
used to handle business processes within one SAP system.
^ No record authorization management (check-out)
^ Missing interfaces to ERP, e.g., to refer to an HR Organization structure
^ Routing based on an organizational structure (e.g., to determine the approver based on
an organizational hierarchy), or on an attribute (e.g., to determine the approver according
to the product's group) is not supported
^ No flexible jumps supported, i.e., it is not possible to route to any workflow step (e.g., in
case of a disapproval, the approval step can only return to the previous workflow step)
^ Changing business rules at runtime is not supported (e.g., in case that an approver is
determined depending on product group, it should be possible to change mapping at run
time


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1. Integration can be the highest benefit of SAP. The only real project aim for implementing ERP
is reducing data redudancy and redudant data entry. If this is set as a goal, to automate inventory
posting to G/L, then it might be a successful project. ERP improves the cooperation of users.

2. I think individual efficiency can suffer by implementing ERP. The big question with ERP is
whether the benefit of integration and cooperation can make up for the loss in personal efficiency
or not.

3. It reduces cost only if the company took accounting and reporting seriously even before
implementation and had put a lot of manual effort in it. If they didn't care about it, if they just did
some simple accounting to fill mandatory statements and if internal reporting did not exists of
has not been financially-oriented, then no cost is reduced.

4. Less reporting or accounting personnel, but more sales assistants etc.

5. What ERP does is makes the lives of inaccurate people or organization a complete hell and
maybe forces them to be accurate (which means hiring more people or distributing work better),
or it falls.



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#" *2
:,
SAP HR Personnel Administration


%,,
^ www.sap-img.com
^ www.sap.com
^ www.wiki.answers.com
^ www.searchsap.techtarget.com
^ www.sapdb.org
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^ www.help.sap.com
^ www.sdn.sap.com





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