FI - SD INTEGRATION

SAP SD-FI
Integration
Step By Step
Notes

Ashraf
Corporate & Online Trainer

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SD Module in ERP system is responsible for handling of Sales and Distribution transaction of
the business. They are responsible of maintaining information relevant to enquires, quotation,
confirm sales order orders, deliveries and posting of Billing

SD Organization Structure

Sales Organisation

Distribution channel Sales Area

Division

The above combination of units is called as Sales Area

Sales Office, Shipping Points, Shipping Groups etc

Master Data: used in Sales and Distribution. It consist of

1. Material Master
2. Customer Master
3. Conditions Records

The business Process or scenarios (Sales and Services Process)

1. Maintaining of Prices and service charges, Discounts, Values against conditions (Maintain
condition Records)
2. Entering of marketing Process (Quotation, Enquires, etc)
3. Contract processing (Creation of Contracts)
4. Creation of Sales orders
5. Delivery Process ( With PGI – Post Goods Issue or without PGI)
6. Billing Process
7. Entering Credit Memos and Debit Memos etc.

While Performing Delivery Process, Billing Process, Debit and Credit Memos, there will be Financial
impact in the Finance Module

The Journal entries must be posed into Accounting system. The setting are relevant to posting of
accounting entries in Financial Accounting module is termed as SD-FI Integration or O to C (Order to
Cash) Cycle

O to C (Order to Cash) Cycle

Enquires → Quotation → Contracts → Sales order → Outbound Deliveries →
Billing Invoices → Incoming Payment

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Accounting Entries
Outbound Delivery
Delivery is picking up of Quantity from Warehouse and shipping of same to the customer

The Delivery transaction must be posted with Standard Price

Note :
1. Always Finished and Semi Finished Goods maintained with Standard Prices, which indicates
all good movements of that material must be posted with Standard Price assigned in the
material master

Entry Cost of Goods Sold Account Dr

To Inventory Finished Goods A/c

2. All goods movements must be posted in SAP with a movement type from the movement type
based on Valuation String, system identifies transactions keys

Inventory GL Accounts are maintained against transactions keys with the combination of

Chart of Valuation Group Valuation Valuation

Accounts Code Modifier Class

Transaction Code – OBYC

GL Transaction General/ Account Valuation
Accounts Keys Modifier class
COGS GBB VAK / VAY Material

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Inventory Finished Goods – BSX

Billing or Sales Invoices

Customer A/c Dr
Sales Deduction A/c Dr
To Sales Account
The above transaction is Posted due to Revenue GL A/c Assignment Settings (T-Code VKOA)

Revenue GL Accounts (Sales), Sales Deduction (Cash Discount), Material Discounts, Rebates Sales
Promotion Freight Charges and Clearing Accounts are automatically extracted for accounting entry
Posting at the time of Billing based on Revenue GL A/c Assessment Settings.

While Posting of Delivery transaction system will validate GL Accounts from the first sequences to the
last sequence. If GL A/c are not detected the Accounts documents is not released to Posting.

Revenue GL Accounts Mapping

The Revenue GL Accounts are mapped with the
1. Chart of Accounts
2. Sales Organisation
3. Account Assignment Group for Customer
4. Account Assignment Group for Materials
5. Account Key

AAG: Account Assignment Group for Customer

The indicators are
01. Domestic Company Revenue
02. Foreign Company Revenue
03. Affiliated Company Revenue

These indicators are assigned against Customer Master. Based on this indicators, we can
differentiate Revenue GL Accounts Ex.
GL Accounts No Description
300 000 Domestic Sales
300 001 Import Sales
300 002 Inter Company Sales

AAG: Account Assignment Group for Material – Indicators (VKOA)

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These indicators are assigned against Material Master used to differentiate Revenue (Sales or GL
A/c Based on Nature of Material

GL Accounts :
GL Accounts No Description
300 000 Domestic Traded Goods Sales
300 001 Import Traded Goods Sales
300 002 Inter Company Traded Goods Sales
300 003 Domestic Finished Goods Sales
300 004 Import Finished Goods Sales
300 005 Inter Company Finished Goods Sales

Accounting Keys:
Accounting Key is extracted from Pricing Procedures used in SD module to identify values or % for
Revenues Sales Deductions, Freight Charges, Taxes etc.

FI-SD INTEGRATION CUSTMISATION STEPS

Insert Regions - OVK2

Path: SPRO → sap net weaver→ General Settings → Set Countries→ Insert Regions → New Entry

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Define Sales Organisation – OVX5
Path: SPRO →Enterprise structure → Definition → Sales and Distribution→ define copy, delete,
check, sales organisation → Double click on define sales organization

➔ Copy from Company 1000 and

On pressing enter another screen open → Give Company and Address Details
➔ Save

Note : If required new regions will be maintained by SD Consultants

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