SAP R/3 Sales and Distribution: Subject Listing and Exercises

1 INTRODUCTION TO SAP R/3 AND THE ERP CONCEPT .............................................. 4 1.1 VIEWS WITHIN SAP R/3 ....................................................................................................... 4 1.2 R/3¶S SALES AND DISTRIBUTION MODULE ........................................................................... 5 1.3 SD ORGANIZATIONAL STRUCTURES IN R/3 ......................................................................... 6 2 CREATE A BASIC ORDER IN R/3 ...................................................................................... 7 2.1 ORDER TYPES ....................................................................................................................... 8 2.2 CHECKING AVAILABLE STOCK ............................................................................................ 8 2.3 CREATE A SECOND SALES ORDER........................................................................................ 9 2.4 RE-CHECKING AVAILABLE STOCK..................................................................................... 10 3 CREATING DELIVERIES.................................................................................................. 11 3.1 PICKING, PACKING, AND POST GOODS ISSUE IN DELIVERIES............................................ 13 3.2 CHECKING AVAILABLE STOCK .......................................................................................... 15 4 PARTNER FUNCTIONS ..................................................................................................... 16 4.1 EXAMINE BUSINESS PARTNERS .......................................................................................... 16 5 BILLING .............................................................................................................................. 17 5.1 CREATING A DELIVERY-RELATED BILL ............................................................................ 17 6 APPLYING PAYMENTS .................................................................................................... 18 6.1 APPLY A CUSTOMER PAYMENT.......................................................................................... 18 7 FREE ITEMS ....................................................................................................................... 20 7.1 INCLUDE A FREE ITEM ....................................................................................................... 20 8 EXAMINING TRANSACTION TYPES IN THE IMG ...................................................... 22 8.1 VIEWING THE ORDER TYPE, OR ........................................................................................ 22 8.2 CHANGING THE BEHAVIOR OF THE STANDARD ORDER ..................................................... 23

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9 CASH SALES AND RUSH ORDERS ................................................................................ 24 9.1 CREATE A CASH SALE ....................................................................................................... 24 9.2 BILLING FOR A CASH SALE ................................................................................................ 25 9.3 RUSH ORDERS .................................................................................................................... 26 9.4 CREATE A RUSH ORDER ..................................................................................................... 26 9.5 BILLING A RUSH ORDER..................................................................................................... 27 10 INQUIRIES AND QUOTATIONS .................................................................................... 29 10.1 CREATING AN INQUIRY..................................................................................................... 29 10.2 CREATE AN ORDER REFERENCING THE INQUIRY ............................................................ 30 10.3 PARTIALLY REFERENCE A SECOND INQUIRY .................................................................. 31 10.4 CREATING A QUOTATION ................................................................................................. 32 10.5 CREATE AN ORDER REFERENCING THE QUOTATION....................................................... 33 10.6 PARTIALLY REFERENCE A SECOND QUOTATION ............................................................ 34 11 PACKING IN DELIVERIES ............................................................................................. 36 12 DELIVERY DUE LISTS .................................................................................................... 37 13 QUANTITY CONTRACTS AND SCHEDULING AGREEMENTS ............................... 40 13.1 WHAT ARE QUANTITY CONTRACTS ................................................................................. 40 13.2 CREATE A QUANTITY CONTRACT .................................................................................... 40 13.3 WHAT ARE SCHEDULING AGREEMENTS .......................................................................... 43 13.4 CREATE A SCHEDULING AGREEMENT.............................................................................. 43 13.5 TESTING THE SCHEDULING AGREEMENT ........................................................................ 46 14 PRICING ............................................................................................................................ 47 14.1 PRICING PROCEDURE ....................................................................................................... 47 14.2 CONDITION TYPES ............................................................................................................ 48 14.3 CONDITION TYPES AS DEFINED IN THE IMG ................................................................... 49 14.4 ACCESS SEQUENCES AND CONDITION TABLES ................................................................ 50 14.5 HOW PRICING PROCEDURES ARE USED IN ORDERS ........................................................ 52 15 CUSTOMER COMPLAINTS: RETURNS AND CREDIT MEMOS............................... 54 15.1 RETURNS........................................................................................................................... 54 15.2 RETURN DELIVERY........................................................................................................... 55 15.3 CREDIT MEMOS ................................................................................................................. 57 15.4 BILLING ........................................................................................................................... 59

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INTRODUCTION TO SAP R/3 AND THE ERP CONCEPT

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The concept of Enterprise Resource Planning (ERP) software. ERP is a form of Client/Server software that integrates different functional areas. These include: y y Sales and Distribution (SD) Materials Management (MM)

Production Planning (PP) y y y y Financial Accounting (FI) Controlling (CO) Asset Management (AM) Quality Management (QM)

Human Resource Management (HR) y Reporting, and others

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The architecture of R/3-based systems is an interesting contrast to typical organizational 2tier and 3-tier systems. The functionality and integration in R/3 reduces the need for extensive interface development between different functional software, as in many older systems.

R/3 achieves integration of different business processes through the following ways: y y y y Integration using a single database and data model; Integration between different applications i.e., the functional modules; Integration with 3rd-party software and desktop applications, such as Access, Word, and Excel; and Integration using object-oriented Business APIs (or BAPIs).

VIEWS WITHIN SAP R/3

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There are several views of SAP R/3, from both the developers and the users perspectives. These views include the: y Functional view: which is enables the user to access and use the functions within R/3.

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shipments. invoices and other sales documents can be generated in batch form. or material. From this window. The user enters basic order details all on one window. Characteristics of SD are: y Multilingual/Multicurrency: Several languages can be used. In SD. based on order types (e. you can create complex pricing schemes that are dependent on customers. The Sales Information System (SIS) allows data to be stored. Processing of batched orders can also be made to run as background tasks to balance processing load. 4 . special promotions etc. Rebate processing options are also very sophisticated and comprehensive. Conversion between currencies is automatic and connecting to SAP's realtime currency rate database in Germany enables operational use. y Simple Order Entry. This is done through the IMG (Implementation Guide) and other functions. deliveries. y Pricing Flexibility.g. Financial Accounting and Materials Management. and schedule line information. y Customization. R/3¶S SALES AND DISTRIBUTION MODULE y The Sales and Distribution Module covers the path of an order from initiation (and even pre-initiation). This is used primarily used by R/3 consultants in configuring R/3.. The ABAP Workbench: is used by developers to create code routines in the ABAP language that add new functionality to R/3. item. Orders.y y The Configuration view: which is mostly accomplished through R/3 s Implementation Guide (IMG). All the different processes of the order life-cycle are linked within SD and to relevant processes outside SD e. R/3 allows you to customize the product to meet the specific requirements of your organization. Flexible Batch Processing of Orders. there is simple access to all the levels of the order. and reported upon by the user in a variety of formats. goods sold. consolidated. y y Comprehensive Reporting. namely header.g. to order fulfillment. incomplete orders) or customer..

such as salesgroups will be defined later. 5 . The Test Client: The development client is 'transported' to the Test Client. returns. personal computers might represent one product line. an organization will have a minimum of 3 active clients. minicomputers another. and division. y y Sales Area. distribution channel. A plant is a location where goods are manufactured or stored. y y Company Code. representing a company. The Development Client: This client is an instance of the organizational processes and data that is used during development. y y Distribution Channel. etc. So for example. a separate instance.SD ORGANIZATIONAL STRUCTURES IN R/3 R/3 is extremely configurable and able to model many types of organizational structure. A company code is an independent accounting unit that represents an individual company. It has a set of Profit/Loss Statements and one balance sheet. However. All clients can be active simultaneously. Other organizational units. That is. This is one instance of R/3. This represents a selling unit. the test client is migrated to the production client. web-based. these must be defined in R/3 terms. catalog. Usually. Sales Organization. corporations have great flexibility in defining divisions and other elements. and product liability. which is the one that users see and use. y Client. However. This is the means by which the product is supplied to the customer. Examples of distribution channels are wholesale. 2. Plant. as defined by R/3. where it is tested. Division. The Production Client: Following testing. They are: 1. 3. A sales area is a unique combination of sales organization. retail. involving Business Process Reengineering (BPR) and organizational restructuring (or redefining). This represents a company's product line. the organizational unit responsible for a sale. A plant can be used by several sales areas. The following are R/3's SD-related organizational structures. A company code can have several sales organizations.

GG represents the instructor-assigned number of your group. group 2. Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Item 2 Material Item 2 Quantity 8GG today's date po-ex1-GG R-1150 10 R-1151 5 In this order. and so on. 6 . R/3 performs no checks on the PO#.CREATE A BASIC ORDER IN R/3 The path is: Logistics Sales and Distribution Sales Order Create (Transaction Code: VA01) Order Type Sales Organization Distribution Channel Division OR 3000 10 00 Hit <Enter> to proceed to the order entry screen. 02. Group 1 is 01. The order date is today and the purchase order number is assigned by the customer. the customer is ordering a quantity of 10 of material R-1150 and 5 of material R1151.

Record the assigned order #. item pricing.g. CHECKING AVAILABLE STOCK The various modules of SAP R/3 are interconnected. It shows schedule line quantity and confirmed quantity also. Checking available stock before and then after the order is made is a way to demonstrate these interconnections. Each order behaves differently in regard to delivery times. use the path: Logistics Materials Management Inventory Management Environment Stock Stock Overview (Transaction Code: MMBE) Field Material R-1150 Value 7 . and the ship-to address. billing. payments etc.. To do so. 10 items now and 10 later. the systems analyst can create customized order types that behave in desired ways. Click on <Item> to see details of each item in the order. The most common type of order is the OR order type or standard order. so that changes made in one module "ripple though" to other modules. Click on <Schedule Lines> to see details of multiple schedule lines for an item. Data includes the material number. the document currency. ORDER TYPES There are several types of orders in R/3. such as the total price. Another order type is the CS order type. In addition. and the pricing structure for the entire order. which is a cash sale. Click on the <Save> Button to save the order. sold-to party. plant and storage locations. Information provided includes delivery dates for each part of the item quantity e.y y y Click on <Header> to see details at the header level of the order.

Plant 3800 How much stock is available for orders and how much stock is scheduled for delivery? 8 .

record the plant and route.) Logistics Sales and Distribution Sales Order Create (Transaction Code: VA01) Field Sales Order Sales Organization Distribution Channel Division Value OR (standard order) 3000 10 (final sales) 00 (cross division) In the materials form. 3. enter the two materials and quantities (15 and 5): Material R-1150 R-1151 Quantity 15 5 1. comprising two items: R-1150 and R1151. (GG is the group number. 9 . 2.CREATE A SECOND SALES ORDER The objective of this exercise is to create a sales order. Record the sales order number that appears at the bottom of the window. Using the path: Item Business Data. Using the path: Header Business Data. Click on the save icon to save the sales order. 4. record the payment terms.

10 . 6. Each plant can have many shipping points. A Plant is a place where goods are made or distributed. Using the path: Item Schedule Lines. while a Shipping Point is a point from which goods leave the plant for the customer. View the document flow using the path: Environment Document Flow. record the scheduled delivery dates. It is also the start of the route.5.

RE-CHECKING AVAILABLE STOCK Create and/or go to an alternate session to re-check inventory. Checking available stock after the order is possible using the path: Logistics Materials Management Inventory Management Stock Stock Overview (Transaction Code: MMBE) Environment Field Material Plant R-1150 30GG Value y How much stock is now available for orders and how much stock is scheduled for delivery? Does this differ from your initial inventory levels and why? 11 .

namely. within the order. shipping point. You may proceed through the main menu: Logistics Sales and Distribution Shipping and Transportation OutBound Delivery Create Single Document With Reference to a Sales Order (Transaction Code: VL01N) Alternatively. The standard order type in R/3. there are two ways to create a delivery after the order is created.CREATING DELIVERIES In the Customer Order Management (COM) Cycle. so the date must be pushed out to "catch" the order's delivery. Field Shipping Point Selection date Sales Order 30GG Value {10 days from today} Order No. go to: Sales Document Deliver This takes you to the delivery screen. The next activities in the creation of the delivery are to save and record the delivery. {should default to order #} The selection date is the date up to which you are looking for a delivery to be made from the order. There are three fields that must be entered. and then examine the document flow of the order to see how the delivery has been recorded by R/3. 12 . and the order number. OR. selection date. is configured with a delivery time of seven days.

3. Record this number. Pull up the order being processed using its order number: Re-examine the order using the following path: Logistics Sales and Distribution Sales Order Change (Transaction Code: VA02) 5. 2. A delivery number is generated and displayed at the bottom of the screen.1. What is the current status of the order? What is the status of the delivery? The order should be Completed. 13 . Go to the document flow for the order: Environment Document Flow . Create and/or switch to another session. Click on the <Save> Button to save the delivery. 4. while the Delivery should be labeled: Being Processed.

Post Goods Issue is mandatory for deliveries. 2. They are: 1. Packing within R/3 documents this activity. At this stage. as not every item requires packing. PACKING. Billing. Picking. This process is optional. Picking is mandatory for deliveries. or other enclosures prior to shipment to the customer. three activities are needed to complete the delivery process within R/3. AND POST GOODS ISSUE IN DELIVERIES After the delivery has been created. an accounting document is created that is used for the next stage in Order Management. 3. Some materials require packing within boxes. This is the last of the three stages and occurs when the goods leave the plant through a shipping point. Packing. cartons. Post Goods Issue.PICKING. Here the factory personnel physically transfer the ordered goods out of their storage location in readiness for shipping to the customer and record this activity within R/3. y Return to your delivery screen using the following path: Logistics Sales and Distribution Shipping and Transportation OutBound Delivery Change (Transaction Code: VL02N) y Go to the picking screen using the following path: Subsequent Functions Transfer Order y y Hit <Enter> Check the following pick quantities in the Transfer Order: Material R-1150 Pick Quantity 15 14 .

Use Deliveries Change Delivery.R-1151 5 y y y y Click on <Enter> and then <Save>. document generated. Click on <Post Goods Issue>. pull up the order and examine document flow using the path: Environment Document Flow. Write down the document number for the accounting 15 . What is the new activity shown in the document flow? Return to the Delivery in the previous session. In another session.

CHECKING AVAILABLE STOCK Checking available stock after the delivery is completed to check if the amount of stock slated for delivery has changed. To do so. use the path: Logistics Materials Management Inventory Management Stock Stock Overview (Transaction Code: MMBE) Environment Field Material Plant R-1150 30GG Value y How much stock is now scheduled for delivery? 16 .

create and/or use a new session and use the path: Logistics Sales and Distribution Orders Change Order (Transaction Code: VA02) Menu: <GoTo> Header Partner 17 . These 'personalities' or functions are thereby referred to as partner functions.. The sold-to party is the party that places the order and to whom sales and product prices are recorded against (e. at a shipping/receiving location. Again. The ship-to party is the party (and address) to whom the order is shipped. The bill-to is the party to whom the bill is sent. each of which is specific to accomplishing part of the transaction. The payer is the party that pays the bill. namely: y Sold-to party. To do so. the ship-to party could be at a totally different location e.g. Each customer may represent several functions. This could again be an entity distinct from any of the three parties. Payer. The different partner functions are stored within the customer master record. Ship-to Party.g. with a unique address. Bill-to Party. Can the ship-to differ from the sold-to? Yes. it might be the accounts payable department at the customer's company. for reporting purposes). y y y EXAMINE BUSINESS PARTNERS This exercise involves identifying the business partners for customer 13GG. There are four (4) business partners that are mandatory for a customer. the bill-to can differ from the sold-to and ship-to. The sold-to party (or partner function)is the central partner function through which all the other functions are referenced.PARTNER FUNCTIONS R/3 refers to entities involved in a transaction with your company as partners or 'business partners'. The fourth mandatory partner is the payer.. For example.

Use the matchcode to see the whole range of partner functions.y Examine and list the four major partner functions and any others that appear. 18 .

with the delivery number shown in the leftmost column. CREATING A DELIVERY-RELATED BILL The object of this exercise is to create a delivery-related bill for the customer and transfer it to FI. This is the column that holds the name of the document from which the bill is created (in this case. Proceed to delivery related billing using the following path: Logistics Sales and Distribution (Transaction Code: VF01) Billing Billing Document Create. it is possible to perform order-related billing. you can also: y y y y y Cancel created bills. The steps are as follows: y y In one session. In billing. pull up the order and examine document flow using the path: Environment Document Flow. and Transfer accounting information to the FI (Financial) module. Generate pro-forma invoices. 19 . delivery-related billing and other types of billing. Issue rebates.BILLING The next stage in the COM (Customer Order Management) Cycle is billing. Issue debit and credit memos. This brings up the Create Bill screen. the delivery). Note the different processes shown in the COM cycle. In R/3.

On this screen. On the bill creation screen.} 20 .y y y Click on <Enter> to go to the bill creation screen. The bill number is shown at the bottom of the screen. What has changed? {Answer: A bill has been generated for the order. the amount of the bill and the items billed are displayed. Return to the order screen and check the document flow one more time. click on the <Save> button to create the invoice.

Payments are not applied in the SD module. (Transaction Code: F-28) Financial Accounting Accounts Receivable Document Entry Incoming y y This takes you to the <Post Incoming Payments: Header Data> screen and form. Enter the following data: Field Value {Today s date} DZ (customer payment) 3000 {Today s date} USD 100000 (dummy Checking Account) {Today s date} 8GG Document Date Document Type Company Code Posting Date Currency/Rate Bank Data: Account Value Date Open Item Selection: Account 21 . Overpayments and underpayments are also handled in different ways. as defined in configuration. In the FI module. APPLY A CUSTOMER PAYMENT y To apply a customer payment.APPLYING PAYMENTS The final stage in the COM Cycle is payments. in Financial Accounting (FI). use the following path: Accounting Payment. payments may be applied to one invoice or to several. but more appropriately.

A negative number means that the customer has underpaid and this difference is still owed. The Amount Entered should equal the value in Assigned. If there is more than one invoice listed. Finally. click on the line with the item to be made inactive. A positive number represents an overpayment. If it does not. i. and the Number of Items should equal 1. payment or a refund to make up the difference. Repeat the above process until only the desired open item remains active. The total in the Assigned field should now equal the total of the open item. Click on <Select Beginning> and then on <Select End>. The process is as follows: y y y In the Open Items list. There should be one invoice requiring payment in the Open Items list. make all the other invoices inactive in order to pay on the relevant invoice. click on the <Inactive> Button. the difference will appear in Not Assigned. open invoices requiring payment. This represents an additional customer y y 22 .. This shows the list of open items. Enter the same value in Difference Postings.This takes you to the <Post Incoming Payments: Process Open Items> screens.e. which is owed to the customer.

the MSI CD-RW Drive(Material R-1151) is given free with the purchase of an MSI CD-ROM Drive (Material R-1150). R/3 allows the salesperson to manually include a free item within order entry. promotions are frequently run that give the customer a free item for the purchase of a fixed number of items. y Enter the following data: Field Value OR {standard order} 3000 10 00 Order Type Sales Organization Distribution Channel Division y Hit <Enter> 23 . In addition. Sample items might also be included as free items within a purchase. paid item in the order using the <higher-level item> field. one free item.FREE ITEMS In sales. INCLUDE A FREE ITEM y To include a free item in a purchase. sales representatives may have the latitude to include a free item with a substantial purchase by a customer. use the following path: Logistics Sales and Distribution (Transaction Code: VA01) Sales Order Create. This is done by attaching the free item to another. In the example below.

in the higher-level item field. 10). y Save the order and record the order number. enter the item number for the first material (in this case. Confirm that the price is $0. and click on the Pricing icon. For the material. To view pricing. enter 1. Overview Double-line Entry to go to an alternative screen for order entry. enter R-1151 and for the quantity. free item. Hit <Enter> Viewing the order shows that no pricing has been performed for the additional. For the second material. 24 .y Enter the following data: Field Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Value 8GG today s date po-ex2-GG R-1150 1 y y y Use the path. click on the second item check box.

when an order (type OR) is created. OR y To view the structure of the order type. For example. where many of the maintenance and configuration options of R/3 are to be found. OR. the assigned order number falls within a specific range. a delivery interval of 7 days is proposed. y To examine the structure of the OR document. This chapter examines the structure of the order type. This range is also different from number ranges used by deliveries (LF) and other document types. use the path: 25 . When the order is saved also.EXAMINING TRANSACTION TYPES IN THE IMG The standard order we have used in the preceding sections represents a sales document that behaves in a specific way and has certain attributes. These ranges are stored within a schema of document types in the IMG. as stored in the IMG to better understand its configuration details and how they may be reconfigured in response to business requirements. The SAP Reference IMG is modified to meet the unique needs of the organization. VIEWING THE ORDER TYPE. The SAP Reference IMG represents the initial unconfigured state of R/3 s structures and document types and is not changed in configuration. use the following path: Tools AcceleratedSAP Customizing Project Management SAP Reference IMG (Transaction Code: SPRO) This takes you into the customizing area of R/3.

Sales and Distribution Document Types

Sales Documents

Sales

Sales Document Header

Define Sales

y Click on <Position> and Type OR in the Sales Document Type field. y Hit <Enter> and the OR document is listed as the first entry. y Click to the left of the OR entry to highlight the entire line. y Click on GoTo Details to go to the OR entry.

The shown view illustrates various elements of the standard order document and its behavior. The entries are arranged into eight major groups, as listed below:

1. Number Systems. 2. General Control. 3. Transaction Flow. 4. Scheduling Agreement 5. Shipping. 6. Billing. 7. Requested Delivery Date/Pricing Date. 8. Contract.

These configuration groups specify various options that can be changed to conform to the organization s specific processes and activities. For example, <Item No. Increment> in Number Systems sets the increment by which subsequent line item numbers increase e.g. an increment of 10 will result in line items 10, 20, 30 and so on. Also, in General Control, <Check Credit Limit> for example determines whether the limit of credit is checked for this order type. The credit group is also specified as are export license details and checking of the line item s division. The next exercise demonstrates how changing the order configuration in the IMG changes the behavior of the order.

CHANGING THE BEHAVIOR OF THE STANDARD ORDER

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In this exercise, we have the following business scenario: Due to increased efficiencies in managing materials, the business can now deliver standard orders in 6 days and need the order type to reflect this. In addition, to retain consistency with the old system, the business wants items to be listed in the order in incremens of 5, not 10, as in the default.

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CASH SALES AND RUSH ORDERS

Orders we have entered until now been the standard order type, OR. This has a preset delivery duration, such as seven days. However, R/3 also includes other order types to handle many other types of transactions, such as credit memos, returns, product exchanges, and cash purchases. In this exercise, we will use the cash purchase order type, CS as the order type for our transaction.

In a cash transaction, the customer must have an immediate delivery, as they will be leaving the store with the ordered material. Therefore, a cash transaction automatically generates a delivery, unlike the standard order type, OR.

CREATE A CASH SALE

To enter a cash order, create a new session or backtrack to the top of R/3 s menu structure and use the following path:

Logistics Sales and Distribution Sales Order Create (Transaction Code: VA01)

Field Order Type Sales Organization Distribution Channel

Value CS 3000 10

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The delivery number is given.Division 00 Hit <Enter> to proceed to the order entry screen. 29 . Use the following path: Logistics Sales and Distribution Shipping and Transportation OutBound Delivery Change (Transaction Code: VL02N) y y Go to <Overview Picking> and pick one item. Click on <Post Goods Issue> At this stage. work in the delivery phase is completed. the customer is ordering a quantity of 1 of material R-1150. Billing follows. corresponding to the order. What message does R/3 give at the bottom of the screen? y y R/3 creates a delivery automatically with the order. The order date is today. Proceed through the main menu on a different screen to examine the delivery. Hit <Enter>. Field Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Value 8GG today's date po-ex3-GG R-1150 1 In this particular order. along with the order number.

To bill. The bill number is shown at the bottom of the screen. In the latter case. use the following path: Logistics Sales and Distribution (Transaction Code: VF01) Billing Billing Document Create. y y y y Change the delivery number to the order number for order-related billing. the delivery). an invoice is automatically produced. This brings up the Create Bill screen. but wants the billing process to follow the regular pattern.} RUSH ORDERS Another order that is used within R/3 is the rush order. It is different from the cash order. delivery-based billing is used as freight charges and other transport-related charges are required from the delivery.BILLING FOR A CASH SALE Billing works much differently in a cash sale (BV) than in a standard order. This is the column that holds the name of the document from which the bill is created (in this case. although the material is picked up right away and 30 . Click on <Enter> to go to the bill creation screen. On the bill creation screen. RO. However. What has changed? {Answer: A bill has been generated for the order. with the delivery number shown in the leftmost column. because. This is in fact. a cash receipt for the customer. On this screen. with a cash sale. the amount of the bill and the items billed are displayed. click on the <Save> button to create the invoice. Return to the order screen and check the document flow one more time. BV. This order is used when a company must have the material right away.

create a new session or backtrack to the top of R/3 s menu structure and use the following path: Logistics Sales and Distribution Sales Order Create Field Order Type Sales Organization Distribution Channel Division Value RO 3000 10 00 Hit <Enter> to proceed to the order entry screen. we will use the rush order type. In this exercise. no receipt is generated for the customer.a delivery created. CREATE A RUSH ORDER To enter a rush order. Billing occurs later using individual billing or a billing due list. Field Customer # Order Date Value 8GG today's date 31 . RO as the order type for our transaction.

What message does R/3 give at the bottom of the screen? y y R/3 creates a delivery automatically with the order. Hit <Enter>. along with the order number. work in the delivery phase is completed. BV. Freight charges and other transport-related charges are not required as the customer already picked up the item. use the following path: 32 . unlike a cash sale.Customer PO# Item 1 Material Item 1 Quantity po-ex4-GG R-1151 3 In this particular order. The delivery number is shown. Proceed through the main menu on a different screen to examine the delivery. However. the customer is ordering a quantity of 3 of material R-1151. To bill. Click on <Post Goods Issue> At this stage. BILLING A RUSH ORDER Billing works similarly to that of a cash sale. The order date is today. no invoice is automatically produced. Billing follows. in that order-based billing is used. Use the following path: Logistics Sales and Distribution Shipping Deliveries Change Delivery y y Go to <Overview Picking> and pick the item that corresponds to the order.

Click on <Enter> to go to the bill creation screen. What has changed? {Answer: A bill has been generated for the order. with the delivery number shown in the leftmost column. the delivery). Return to the order screen and check the document flow one more time. click on the <Save> button to create the invoice. This brings up the Create Bill screen. On this screen.} 33 .Logistics Sales and Distribution (Transaction Code: VF01) Billing Billing Document Create. The bill number is shown at the bottom of the screen. the amount of the bill and the items billed are displayed. This is the column that holds the name of the document from which the bill is created (in this case. On the bill creation screen. y y y y Change the delivery number to the order number for order-related billing.

The purpose of having inquiry and quotation transaction types is twofold. Lastly. there are several transaction types used to record these transactions. if customers place orders in the future.INQUIRIES AND QUOTATIONS In the normal course of selling. In the following exercises. customers contact the organization to make inquiries or to request quotations for specific quantities of materials. customers may use quotation to obtain guaranteed pricing on quoted materials. information from inquiries and quotations may be imported into the order. In R/3. reducing data entry. Second. Third. CREATING AN INQUIRY To create an inquiry. we examine the two transaction types. First is simply to record the specific customer transaction. they provide a means of evaluating future income from sales represented by past inquiries and quotations. create a new session or backtrack to the top of R/3 s menu structure and use the following path: Logistics Sales and Distribution Sales Inquiry Create (Transaction Code: VA11) Field Inquiry Type Sales Organization Distribution Channel Division Value IN 3000 10 00 34 .

Record the assigned inquiry #. In the next example. How is this number calculated? {It is the probability multiplied by the inquiry total $ amount.Hit <Enter> to proceed to the inquiry data entry screen. They may not remember their inquiry number. the customer is placing an inquiry for a quantity of 3 of material R-1150 (a CDROM Drive). In that case R/3 automatically brings up stored inquiries (and quotations also). we will assume that the customer remembers the inquiry number.} Click on the <Save> Button to save the inquiry. Field Customer # From Date To Date Item 1 Material Item 1 Quantity Value 8GG today's date end of the month R-1150 1 In this transaction. CREATE AN ORDER REFERENCING THE INQUIRY Some time after making an inquiry. To create an order that references the inquiry. backtrack to the top of R/3 s menu structure and use the following path: 35 . y y Examine the PRB field. What probability is assigned to the inquiry? Examine the Expected Order Amount field. the customer may call back to place an order that may be based on the inquiry.

y Check the document flow for the order. Enter the purchase order number.} PARTIALLY REFERENCE A SECOND INQUIRY Return to the <Inquiry> option in the Sales screen and create another inquiry using the following data. Record the assigned inquiry#.Logistics Sales and Distribution Sales Order Create with Reference to Inquiry (Transaction Code: VA01) y y y y y When prompted. make sure the material R-1150 has been pulled up with a quantity of 1. Field Customer # From Date To Date Item 1 Material Item 1 Quantity Item 2 Material Item 2 Quantity Value 8GG today's date end of the month R-1151 3 R-1150 2 36 . What does it show? {It shows that the order was created from the Inquiry. po-in1-GG. Click on the <Save> Button to save the inquiry. enter the inquiry number. Click on <Copy> to copy all the items and quantities into the order. When the order form comes up.

In this case. This ensures the second material is not referenced. The object of this exercise is to determine the effect of partially referencing an inquiry. and select <Edit> and <Delete Line Item>. When the order form comes up. The second material (the CR-RW Drive) has not been referenced at all. Create an order that partially references the inquiry using the following path: Logistics Sales and Distribution Sales Order Create with Reference to Inquiry (Transaction Code: VA01) y y y When prompted. Check the box to the left of the Material 2 (CR-RW Drive). change the material quantity for material. create another order that references the inquiry using the path: Logistics Sales and Distribution Sales Order Create with Reference to Inquiry (Transaction Code: VA01) y y When prompted. 37 . Click on <Copy> to copy all the items and quantities into the order. po-in2-GG. R1151 from 3 to 2. the customer is placing an inquiry for 3 CDROM drives and 2 CDRW Drives. Performing these actions means that the first line item in the Inquiry has only been partially referenced. enter the inquiry number. There should be a quantity of 1 remaining in that line item. Click on the <Save> Button to save the inquiry. To attempt to reference the inquiry again. Record the assigned inquiry#. enter the inquiry number. as the customer indicates they now require only 2 headlights. Click on <Copy> to copy all the items and quantities into the order. y y y Enter the purchase order number.

create a new session or backtrack to the top of R/3 s menu structure and use the following path: Logistics Sales and Distribution Sales Quotation Create (Transaction Code: VA21) Field Inquiry Type Sales Organization Distribution Channel Division Value QT 3000 10 00 Hit <Enter> to proceed to the quotation data entry screen and enter the following data: Field Value 38 .y y Did the first material come up? Did the second material come up? In R/3. other line items in the inquiry may be referenced if they have never been referenced before. This behavior is unique to inquiries. regardless of remaining quantities. as we will see in the next section on quotations. CREATING A QUOTATION To create a quotation. However. partially referencing an inquiry¶s line item completely references that line item.

30%.. How is this number calculated? {It is the probability multiplied by the quotation total $ amount. In truth. Again. y y y Examine the PRB field. but again.e. CREATE AN ORDER REFERENCING THE QUOTATION Similar to an inquiry.Customer # From Date To Date Item 1 Material Item 1 Quantity 8GG today's date end of the month R-1150 2 In this transaction. such as how many inquiries and quotations were later referenced by orders. the customer may call back to place an order referencing the quotation. 70% vs. To create an order that references the quotation.} Click on the <Save> Button to save the quotation. use the following path: 39 . they will differ from company to company and are arrived at by a study of historical data. the customer is requesting a quotation for a quantity of 2 of material R-1150 (a CDROM drive). Record the assigned quotation #. we assume that the customer remembers the quotation number. The probability of a quotation is generally assumed to be higher than that of a more casual inquiry i. they may not remember their quotation number. What probability is assigned to the quotation? Examine the Expected Order Amount field.

The object of this exercise is to determine the effect of partially referencing a quotation.} PARTIALLY REFERENCE A SECOND QUOTATION Return to the <Quotation> option in the Sales screen and create another quotation using the following data. Click on <Copy> to copy all the items and quantities into the order. What does it show? {It shows that the order was created from the Quotation. 40 .Logistics Sales and Distribution Sales Order Create with Reference to Quotation (Transaction Code: VA01) y y y y y When prompted. Click on the <Save> Button to save the quotation. enter the quotation number. the customer is placing an quotation for 4 headlights. Record the assigned quotation#. y Check the document flow for the order. po-qt1-GG. When the order form comes up. make sure the material R-1150 has been pulled up with a quantity of 2. Field Customer # From Date To Date Item 1 Material Item 1 Quantity Value 8GG today's date end of the month R-1151 4 In this case. Enter the purchase order number.

Record the assigned quotation#. When the order form comes up. enter the quotation number. There should be a quantity of 2 remaining in that line item. R1151 from 4 to 2. does not completely reference that line item. To attempt to reference the quotation again. as the customer indicates they now require only 2 headlights. change the material quantity for material. 41 . po-qt2-GG. y y Performing these actions means that the material in the Quotation has been partially referenced. enter the quotation number. create another order that references the quotation using the path: Logistics Sales and Distribution Sales Order Create with Reference to Quotation (Transaction Code: VA01) y y y When prompted. partially referencing an quotation¶s line item. Click on <Copy> to copy all the items and quantities into the order. Did the first material come up? In what quantity? In R/3. Click on <Copy> to copy all the items and quantities into the order. Quotations can therefore be reused until the quantities are exhausted or the <Valid To> date is past. Enter the purchase order number. This behavior is different from that of the inquiry transaction. Click on the <Save> Button to save the quotation.Create an order that partially references the quotation using the following path: Logistics Sales and Distribution Sales Order Create with Reference to Quotation (Transaction Code: VA01) y y y When prompted.

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PACKING IN DELIVERIES Three of the major activities in deliveries are picking. In the above example. a packing material is selected and then used to pack the ordered item. Create a delivery for the last order using the following path: y Logistics Sales and Distribution Shipping and Transportation OutBound Delivery Create (Transaction Code: VL01N) y y y y Enter the order number for the last order. Packing is optional within deliveries. where we will select the MSI Carton (Material) as the packing material. and post goods issue. The objective of this exercise is to pack the headlight in a carton (material PK-100) for delivery. Push the date out by 7 days or more so the delivery can be created. as earlier discussed. packing. Press <Enter> to go to the Delivery Overview:Quantities screen. Click on the Item 20 checkbox and select the path: Edit Pack y y This takes you to the <Pack Items> screen. This section illustrates how packing is accomplished within R/3. Enter the following data in the All Shipping Units groupbox: Field Shipping Material Value PK-100 43 . In packing. but is often required for items that cannot be shipped as is. the customer ordered a motorcycle that came with a free headlight.

Select menu option <Edit><Pack Item> to pack CDROM into the carton. Save the delivery and examine the order or delivery document flow.y y y y y Hit <Enter> Highlight the first rows of the Shipping Unit and Item group boxes. What is the Status assigned to Packing? 44 .

orders that have the same ship-to and delivery dates are put together in the same deliveries. Instead.DELIVERY DUE LISTS Up until this point. it is more efficient to create all deliveries from outstanding completed orders at predetermined times. To improve efficiency further. Create two completed orders using the following data: Field Order Type Sales Organization Distribution Channel Division Value OR 3000 10 00 Order 1: 45 . The function is R/3 that is used to batch process delivery creation is the Delivery Due List. you need to have more than one completed order. we have individually created deliveries for our entered orders. To process the delivery due list. which makes sense in an actual business environment. for illustration purposes. is the ability to batch process creation of documents. This function collates all outstanding completed orders and creates deliveries for them. One of the advantages of R/3 however. Deliveries are seldom created at the same time as their associated orders (an exception is cash orders).

Field Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Value 8GG today's date po-ex5-GG R-1150 3 Order 2: Field Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Value 8GG Today's date po-ex6-GG R-1151 2 After the two orders above have been successfully entered. proceed to the creation of the delivery due list using the following path: Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Collective Processing of Documents Due for Delivery Sales Orders (Transaction Code: VL10A) 46 .

then select the orders you want delivered by clicking on the small box on the left of each order. combining the two orders. meaning that they will be processed.} 47 . When the popup window appears. Click on the <Save> icon to run the delivery due list. y y y y The small boxes to the left of the screen shows all the orders highlighted. go to Edit Deselect All. how many deliveries were created? Why? (A single delivery was created.At this point. Enter the following data in it: Field Shipping Point Delivery Creation Date (start) Delivery Creation Date (end) Ship-To Value 30GG {Today's date} {10 days from today} 8GG To ensure that the list is being prepared for the correct sales area. enter the following data: Field Sales Organization Distribution Channel Division Value 3000 10 00 Select menu option <Program><Execute> to see the delivery due list. click on the <organizational data> button. In the log for delivery run screen. If you want to process only selected orders. the delivery due list data form comes up. The two orders you created (along with other completed orders) is then displayed in a list.

QUANTITY CONTRACTS AND SCHEDULING AGREEMENTS WHAT ARE QUANTITY CONTRACTS Quantity contracts are agreements between the customer and your company to order specific quantities of a product within a set timeframe. Quantity contracts are usually agreed to at discounts from totals if priced individually. The customer does not provide any information about delivery dates. If the customer supplies delivery dates for the product. 48 . CREATE A QUANTITY CONTRACT To create a quantity contract. only the start and end date of the contact. use the following path: Logistics Sales and Distribution (Transaction Code: VA41) Sales Contract Create y Enter the following data and hit <return>. instead of a quantity contract. then it is preferable to use a scheduling agreement. This is described in the following section. they are standard orders that automatically reference the customer¶s quantity contract and reduce the remaining amount of product to be ordered under the contract. However. A quantity contract is fulfilled when the customer places orders against it in the contract period. These orders are known as release orders or µcall-offs¶.

enter the following data: Field Customer # Order Date Customer PO# Valid-from Valid-to Item 1 Material Item 1 Quantity Value 8GG today's date po-ex7-GG {today s date} {three weeks from today} R-1151 10 y Save the quantity contract and record the contract number.Field Contract Type Sales Organization Distribution Channel Division Value NMS {quantity contract} 3000 10 00 y In the screen <Create Contract: Overview Single-Line Entry>. it is necessary to create release orders against the quantity contracts. to view how it is affected by orders. Now that the quantity contract has been created. To create the first order. use the following path: Logistics Sales and Distribution Sales Order Create 49 .

enter the following: Field Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Value 8GG today s date po-ex8-GG R-1151 4 y Click on <save> to save the order. To Contract> button to create the order with reference to the quantity contract. enter the quantity contract number in the <contract> field and click on <copy>. Record the order number. In the <Create Standard Order> window. In the popup window.(Transaction Code: VA01) Field Order Type Sales Organization Distribution Channel Division Value OR 3000 10 00 y y y Click on the <Ref. 50 .

the order is not refused. referencing the quantity contract. What message do you get? Why? The message says that the quantity contract has been fully exhausted. because the contract has been exhausted.} Examine the document flow for the quantity contract or any of the orders that reference it. Does it work? {No. Adding 6 from the first order to 12 in the second order gives 18. 51 .y Go back and create a second order with the following data: Field Customer # Order Date Customer PO# Item 1 Material Item 1 Quantity Value 8GG today s date po-ex9-GG R-1151 12 y Cllck on <save> to save the order. y y Try to open a 3rd order. which is 8 more than the quantity on the initial contract. However. and another 8 of the items are added from inventory to the order. The quantity contract is exhausted.

Instead. and refer orders to this contract when they are created. CREATE A SCHEDULING AGREEMENT To create a scheduling agreement. Field Value 52 . Thus.WHAT ARE SCHEDULING AGREEMENTS Scheduling agreements are similar to quantity contracts in that they are agreements between the customer and your company to order specific quantities of a product. scheduling agreements do not have orders placed against them. while the quantity contracts do not contain the delivery dates for the materials. After the delivery is created. A scheduling agreement is fulfilled when the customer places deliveries against it in the agreement period. the quantity in the scheduling agreement is correspondingly reduced. However. if the <delivery due list> function is run on the same day as one of the deliveries is due. use the following path: Logistics Sales and Distribution (Transaction Code: VA31) Sales Scheduling Agreement Create y Enter the following data and hit <return>. then it is used to directly create a delivery. If the customer cannot supply specific delivery dates for the product. scheduling agreements do. then it is preferable to use quantity contract.

enter the following data: Field Customer # Order Date PO# Valid-from Valid-to Item 1 Material Item 1 Quantity Value 8GG today's date po-ex10-GG {today s date} {three weeks from today} R-1151 12 This specifies that the material R-1151 is required for a target quantity of 12 I the scheduling agreement. This is done by going to the schedule lines and entering the data there. The remaining task is to specify in the agreement the exact dates on which the material should be delivered and in what quantities. as follows: y y y Click in the box to the left of the item number. Use the menu: GoTo Item Schedule Lines Enter the following data on line 1: 53 .Scheduling Agreement Type Sales Organization Distribution Channel Division DS {scheduling agreement} 3000 10 00 y In the screen <Create Scheduling Agreement: Overview>.

What happens? available delivery date}. 54 . {Delivery is rescheduled for the first date to the earliest Click on <Save> to save the scheduling agreement. Record the agreement number.Field Date Type Delivery Date Quantity Value D Four days from now 7 y Enter the following data on line 2: Field Date Type Delivery Date Quantity Value d Ten days from now 5 y y Hit <Enter>.

Create a second delivery with the same data as above. save that delivery and record the delivery number too. 55 1 . Create a delivery that references the scheduling agreement by using the following data: Field Shipping Point Selection Date Order Value 30GG Twelve days from now {scheduling agreement #} y y y Note that you are using a delivery date that encompasses both schedule lines in your scheduling agreement. Only one. because the delivery lines in the scheduling agreement have different dates.TESTING THE SCHEDULING AGREEMENT The next assignment is to exhaust the scheduling agreement quantities by creating deliveries. How many deliveries were created and why?1 Save the delivery and note the delivery number.

Each item uses a specific pricing procedure. and 5. the highest level element of pricing. but the underlying concepts are fairly straightforward. determined by a unique combination of the five elements above. The condition technique is so called because it works using a set of conditions or elements that work together to determine the overall price for an item. a variable quantity of a material) is determined by a combination of 5 elements. To see how the pricing procedure for transactions made in the sales area: 3000 56 . These are: 1. The sold-to 2. surcharges. The sales organization 4. This selection is set up in the Implementation Guide (IMG). Prices for items are determined primarily by a process called the condition technique. It can also be very difficult to grasp. The distribution channel The combination of these elements with the material¶s basic price determines the total price of the items as sold to the user. In R/3. The division. PRICING PROCEDURE A price is determined for a material through the use of a pricing procedure. The price of a line item (that is. the condition technique is used to organize and manipulate the main elements that determine a material s pricing to result in an overall price that includes the basic price.PRICING Pricing is a very important function in R/3. discounts. The document type 3. and taxes.

while the customer pricing procedure key is in the customer 2 The pricing procedure. YVA2US is shown. use the following path: Tools AcceleratedSAP Customizing Project Management SAP Reference IMG and Distribution Basic Functions Procedures Pricing Pricing Control Define Pricing Procedure Determination Sales Define and Assign Pricing (Transaction Code: OVKK) y y Click on <Position> Enter the following data: Field Sales Organization Distribution Channel Division Value 3000 10 00 y y Hit <Continue> or press <Enter> What pricing procedure is shown?2 The pricing procedure is unique for the sales area.(company code). and the customer pricing procedure key 1. 10 (distribution channel). 57 . The document pricing procedure key is in the header of the sales document. and 00 (division) is determined. plus the document pricing procedure key A.

CONDITION TYPES The condition type is at he heart of the condition technique in SAP R/3.master record. or a sales promotion. there may be a condition type for the basic price of a material. A material¶s price might then be determined by a combination of condition types used within a pricing procedure. We will deal with the subject of condition types next. We will examine a more comprehensive list of these condition types later. Click on the <Analysis> button and examine the header of the next screen. 58 . y Others that may be present include VPRS. a condition type that provides a basic or core price for the material. Essentially. a condition represents a major aspect or representation in R/3 of pricing activity in your organization. Click in the box to the left of the item R-1151. To examine existing condition types. K005. SKTO. Select Item Pricing F7 from the menu. the leftmost column lists the different condition types used to price the material. do the following: y y y y Pull up a previously created order. y K004. For example. Some of the condition types shown are: y ZR00. as used in an order. there may be another condition type to determine a material discount. Which pricing procedure is being used?3 This selection illustrates the pricing for item # R-1151. a customer discount. another condition type that provides a material discount. Each of these speaks to a specific type of pricing discount. The field to the right of the pricing procedure is the condition type automatically proposed by the system. This adds up to the five elements described previously. one with the purchase order #po-10-2-GG. CONDITION TYPES AS DEFINED IN THE IMG 3 The RVAJUS pricing procedure. In particular. K007.

Each condition has one associated access sequence. and 3. or volume. or price. The following elements can be seen: y The condition type: PR00 y The access sequence associated with the condition type. Highlight the entire line by clicking in the <condition type> field. Unfortunately. as in this case. we may examine the PR00 condition type using the following path: Tools AcceleratedSAP Customizing Project Management Pricing SAP Reference IMG Sales and Distribution Basic Functions Types Maintain Condition Types Pricing Control Define Condition Click on <position>. and other important pricing factors.Each of the condition types that may be used in sales documents is defined in the IMG. the pricing procedure calls upon one or more condition types in order to retrieve the material¶s basic price. Subsequently. Condition Tables. by quantity. However. Several other pricing elements in R/3 are used to enable the condition types to perform their task. This takes you to directly into the structure of the condition type. type PR00 in the search field. 59 . which denotes the nature of the condition type for pricing..g. They are: 1. y The calculation type describes how the value is measured e. Click on the <details> icon²the icon with the magnifying glass. For example. tax etc. The default for PR00 is C. R/3¶s naming conventions frequently give both elements similar names. by weight. y The condition class. Condition Records. namely µPrice¶. also PR00. not measured by volume or weight. such as (core) price. Based on the condition technique. it does not end here. any discounts. and then press Return. Access Sequences 2. signifying that the value is quantity-dependent. This takes you to the PR00 condition type. surcharges. In this case. the type is B. a pricing procedure determines the price of a material. surcharge or discount.

The sequence (1). (3) represents the PR00 Access Sequence. 60 . If no ABC price existed. for example. and activitybased costing. these would all be different prices. (2). Click on the <Accesses> button in the <Navigation> group box. It might be (1) cost plus (2) ABC. However. Click to the left of <PR00> to highlight the entire line. and (c) competitor¶s price. cost plus a percentage. which individually determine an aspect of pricing e. then we would look for an ABC µcore price¶. To examine the PR00 access sequence and the records searched by R/3. a pricing procedure is the overall method that determines a price for a material. This access sequence is simply the order which R/3 searches for a stored record to fulfil a condition type. Each pricing procedure has one or more condition types. If we focus our attentions on the core price condition type. If no data record was found for ³cost plus´. we already know that it has the associated access sequence. use the following path: Tools AcceleratedSAP Customizing Project Management SAP Reference IMG and Distribution Basic Functions Maintain Access Sequences (Transaction Code: V/07) Pricing Pricing Control Sales Define Access Sequences y y y Click on <Position> and and enter <PR00> in the popup field. such as.g. we may determine the core price of a product in various ways. PR00. An access sequence would specify how we searched for a core price throught these three options. discounts and surcharges. ACCESS SEQUENCES AND CONDITION TABLES To recap. then the competitor¶s price might be sought out. if stored within R/3. for example. competitor¶s price. So. core price.We continue by examining Condition Tables. PR00..

Pricing Reference Material (or material number) If an actual condition record exists with an attached price. 30. Sales organization 2. Document Currency.1. only the structure is. Price List Types. are collectively referred to as the condition table. 20. y y { What fields exist in the condition table for access #20?} Answer: Sales organization. This procedure had 61 . we saw in our pricing analysis that procedure RVAJUS was used to determine the price for the order. determined in different ways. However. and Pricing Reference Material (or material number} HOW PRICING PROCEDURES ARE USED IN ORDERS Pricing procedures determine the price for a material. i. the customer/material access sequence. For access 10. Note that the actual record is not stored in the IMG. This implies that there are 4 possible records of µcore prices¶ in the R/3 system. Sold-to 3. the structure. and 4. there are four fields that comprise the structure of the condition table and will hold data values in the actual condition record. then R/3 will check the record represented by access #20. Distribution channel. They are accesses 10. if no record has been stored.e. Scroll to the left to view field descriptions. and 40. Sold-to. then this price will be used first. To view the fields of the first condition table. These fields are: 1.Four accesses are shown in the list of accesses. In 14. perform the following: y y y Click to the left of access number 10 to highlight the entire line. Click on the <Fields> button in the <Navigation> group box. The fields that comprise this record.. Each of these records is called a condition record.

The first task is to compare the definition of the RVAJUS pricing procedure in the order with the one in the IMG. we make use of the condition types. 62 . In one session. each of which had a single access sequence. use the following path: Tools AcceleratedSAP Customizing Project Management SAP Reference IMG Distribution Basic Functions Procedures Pricing Pricing Control Sales and Define and Assign Pricing Maintain Pricing Procedure (Transaction Code: V/08) Click on <Position>. enter RVAJUS in the presented field Press <Enter> Click to the left of RVAJUS Click on the <Control> button This takes you to the layout of the RVAJUS pricing procedure. K005 and K007 to illustrate how R/3 pricing works in practice.several attached condition types. The access sequences simply specified the order in which the search was made for condition records. In the next set of exercises. PR00.

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While products may be returned in R/3 without a corresponding past order. the customer may simply seek to return the product for credit.CUSTOMER COMPLAINTS: RETURNS AND CREDIT MEMOS Customer dissatisfaction with some percentage of provided products and services is an unhappy fact of life in organizations. the product may have been damaged in transit and it is not worth returning to the company. it is treated as a type of order and handled in R/3 s sales function. RETURNS When a customer requests for a return. the selling organization is required to provide remedies to the customer in a variety of ways. we will assume that a previous order has been placed and is being returned. To begin the Returns process. In this case. Both scenarios are the subjects of the two following exercises. in our example. In other cases. When this happens. In some instances. use the following path: Logistics Sales and Distribution Sales Order Create (Transaction Code: VA01) Field Order Type Sales Organization Distribution Channel Value RE 3000 10 64 . We will return the order created in Chapter 7. the customer may simply request credit for the damaged material. with the purchase # po-71-GG.

Division 00 Note that the order type is RE. It signifies check credit memo and is an added level of verification to ensure that returns are valid and must be explicitly approved by an organizational representative. the customer may seek to return some or all the line items in the original order. Save the Return. but will keep the free item. 08 in the Billing Block field. In this particular case. Select the order number when it comes up. Change the quantity of the line item 10 from 2 to 1. Press <Copy All> and proceed to the Returns screen. the customer may seek to return some or all of the quantity ordered. Next. 65 . the customer seeks to return one of the two ordered items. This representative will typically check to ensure the return was based on an order and that it was approved. not OR. In creating a return. maybe with an RMA# (Return Merchandise Authorization number). Of each line item. Go to Order Reason and enter Reason 101 (Poor Quality). Before saving the return. we connect the return to the originating order. enter the purchase order number in the appropriate field. Examine the matchcode for this field to see what 08 means. notice the No. which is acceptable to our company. using the following path: Sales Document Create With Reference To Order Using the Matchcode and search help A .

If the Returns document number is not automatically selected.RETURN DELIVERY After a Return is created. What Happens? Attempt to pick using We are not allowed to pick in a Returns Delivery. a returns delivery transaction follows. in order to give the customer credit for the material return. From the topmost menu level in R/3. Subsequent Functions Transfer Order. This completes the Returns Delivery and denotes the material being received back into the company s plant. not being sent out to the customer. type it in (not the Returns Delivery number). The necessary step is simply to Post Goods Issue. as the materials are being received by us. use the following path: Logistics Sales and Distribution (Transaction Code: VF01) Billing Billing Document Create. We can go directly to this using the path: Sales Document Subsequent Functions Create Delivery This saves the Return and creates a Returns Delivery document. or by hitting F8. Execute the credit memo generation. Next. Write down the Returns Delivery number. we must go to Billing and create a credit memo. 66 . by clicking on the <Post Goods Issue> button or by selecting: Edit Post Goods Issue.

Examine the log to find out why a credit memo could not be generated. All supplier credits and payments. Execute the credit memo generation again and save. {The reason is that is was blocked for billing in the Return document. are handled in Accounts Payable. the customer must be given the credit in Financial Accounting. note that customer credits as well as payments are handled in Accounts Receivable. Finally. go back to the Return document and remove the 08 in the Billing Block field.} In another session. In R/3. Enter the following data: Field Document Date Document Type Company Code Posting Date {Today s date} Value DZ (customer payment) 3000 {Today s date} 67 . Financial Accounting Accounts Receivable Document Entry Incoming (Transaction Code: F-28) This takes you to the <Post Incoming Payments: Header Data> screen and form.An error results. conversely. Go to the appropriate location in FI from the top level of R/3 using: Accounting Payment.

We likewise assume that a previous order has been placed and credit is being sought. given that the customer s version of events is accepted. or CR. To begin the Credit Memo Request process. make all the other invoices inactive in order to pay on the relevant credit memo.Currency/Rate Bank Data: Account Value Date Open Item Selection: Account USD 113100 (dummy Checking Account) {Today s date} 8GG This takes you to the <Post Incoming Payments: Process Open Items> screen. CREDIT MEMOS A credit memo is also treated as a type of order and handled in R/3 s sales function. Notice that the transaction needed is the Credit Memo Request transaction. Hence. In this instance. there should be one invoice requiring a credit in the Open Items list. use the following path: 68 . If there is more than one invoice listed. enter the amount required to clear the credit memo. We will return the order created in Chapter 8. the customer may have received a product that was damaged or ruined on delivery. Thereafter. Note that it will have a ve sign as it is a credit to the customer. with the purchase # po-81-GG. it makes little sense to return the actual product or material. In the list of open items.

the customer may seek credit for some or all the line items in the original order. 69 . we connect the credit memo request to the originating order. In creating a credit memo request.Logistics Sales and Distribution Sales Order Create (Transaction Code: VA01) Field Order Type Sales Organization Distribution Channel Division Value CR 3000 10 00 Note that the order type is CR. Select the order number when it comes up. enter the purchase order number in the appropriate field. Next. which is acceptable to our company. Similar to a return. the customer seeks credit for all the ordered items. Press <Copy All> and proceed to the Credit Memo Request screen. the customer may also seek credit for some or all of the quantity ordered for each line item. using the following path: Sales Document Create With Reference To Order Using the Matchcode and search help A . not RE. In this particular case.

In another session. use the following path: Logistics Sales and Distribution (Transaction Code: VF01) Billing Billing Document Create. the customer must be given the credit in Financial Accounting. Finally. An error results from the billing block. Is again filled in with a 08 . we go directly to Billing and create a the actual credit memo. in order to give the customer credit for the material return. note that customer credits as well as payments are handled in Accounts Receivable. Execute the credit memo generation again and save. go back to the Credit Memo Request and remove the 08 in the Billing Block field. Save the Credit Memo Request.Go to Order Reason and enter Reason 104 ( Material Ruined ). This forces explicit credit verification by an organizational representative. If the Credit Memo Request document number is not automatically selected. BILLING Since no goods are being returned. From the topmost menu level in R/3. type it in and execute the credit memo generation. The Billing Block field. All supplier credits 70 . signifying check credit memo . In R/3.

and payments. are handled in Accounts Payable. Go to the appropriate location in FI from the top level of R/3 using: Accounting Payment. 71 . conversely. Financial Accounting Accounts Receivable Document Entry Incoming (Transaction Code: F-28) This takes you to the <Post Incoming Payments: Header Data> screen and form.

In the list of open items. If there is more than one invoice listed. make all the other invoices inactive in order to pay on the relevant credit memo.Enter the following data: Field Document Date Document Type Company Code Posting Date Currency/Rate Bank Data: Account Value Date Open Item Selection: Account {Today s date} Value DZ (customer payment) 3000 {Today s date} USD 100000 (dummy Checking Account) {Today s date} 8GG This takes you to the <Post Incoming Payments: Process Open Items> screen. Thereafter. enter the amount required to clear the credit memo. there should be one invoice requiring a credit in the Open Items list. Note that it will have a -ve sign as it is a credit to the customer. 72 .

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