Basic Rules in SD Configuration

Page restrictions apply Added by Prashanth Goud, last edited by Jyoti Prakash on

Nov 09, 2012 (view change)

PurposeThis wiki page will discuss the basic rule / principle / information pertaining to SAP Sales and Distribution.

Organizational structure

Sales OrganizationIt’s responsible for:

Distribution of goods and services Negotiating Sales Conditions Product Liability and rights of recourse A sales organization is uniquely assigned to a company

code Master data's are separately maintained for a sales

organization

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All items in the Sales and Distribution document belong to a sales organization

Distribution Channel:This is the means through which products and services reach the customer. So, it’s responsible for:

Defines responsibilities Helps in achieve flexible pricing Differentiate Sales statistics

Division: A division is used to group products and services. A division represents a product line.

Sales Area:A Sales area is a combination of

Sales organization Distribution Channel Division

Each Sales and distribution document is assigned exactly to one sales area.A sales area can belong to only one company code.

Plant and Storage Location: A Plant is a location where stock is maintained Plant and storage location are used by all logistic area of

R/3 System A Plant is uniquely assigned to a company code

Shipping point:

Shipping point is the highest level of organizational unit in shipping

Each outbound delivery is processed by one shipping point

Shipping points are assigned to a plant More than one shipping point can be assigned to a plant

ProcessSales and Distribution is SAP begins with establishing customer relationship and ends with invoicing for the delivery of goods or service provided to the customer.A standard process flow for sales transaction has the following flow:

1. Inquiry2. Quotation3. Sales Order4. Delivery Document5. Invoice

The customer order management cycle begins with pre-sales activities.

Sales OrderA standard sales order in SAP contains:

Customer & its partner’s details Material information Pricing conditions Delivery dates and quantities Shipping/Transportation information Billing information

Accounting Interface information Required Output Details Document Status

Inventory sourcing at Sales Order & DeliveryIt is handled through:

Availability check

ShippingSAP supports following shipping process:

Outbound delivery creation Picking Packing Post Goods Issue

BillingSAP supports following billing process:

Creating invoices for products and services Creating credit and debit memo Cancel previously posted billing documents Automatically transferring billing documents to accounting

When a billing document is created for a sales order we Credit the sales revenue account Debit the customer receivables account

Sales Documents - Structure & related information

Sales OrderA sales order is grouped into three structures

1. Header2. Item3. Schedule Line

Outbound deliveryA delivery document is grouped into two structures

1. Header2. Item

In standard system, several orders can be grouped into single outbound delivery, provided the referenced orders have same

1. Shipping point2. Delivery date3. Ship-to address

Picking List or Transfer Order created for an outbound delivery created for a warehouse number

Post Goods IssueWhen PGI is done the system

Updates the quantity in inventory management and delivery requirements in materials planning

Generates additional documents for accounting Adds the delivery to the billing due list Updates status in sales documents

BillingA billing document is grouped into two structures

1. Header2. Item

In standard system, several orders/deliveries can be grouped into single billing document, provided the orders/deliveries have same

1. Billing date2. Payer3. Billing address

The effects of billing are Debit on the customer receivables account Credit on sales revenue account System updates

- Sales information system- Sales statistics

Master data in SAPIn sales and distribution, the following main master dates:

1. Customer master2. Material master3. Condition master4. Output master5. Customer material information master

Customer masterThe master data for customer is maintain in 3 major area

1. General Data2. Company Code data3. Sales Area Data

Following is the table which shows detail on three main areas of customer master and the tab pages & details found under each area:

General Data Sales Area Data

Company Code data

Address Sales Details Account info like Reconciliation account

Control data like Transport.zone, tax info

Shipping details

Payment like Terms of payment, auto payment details

Payment transaction like bank details, payment cards

Billing details like payment term, account details

Billing Correspondence like Dunning Procedure, payment notice

Marketing Partner functions

Insurance

Export data

Contact Person details

Material Master

It is maintained in different views. Following are the important views maintained for material master in sales and distribution:

Views Key Fields

1. Basic data 1 Base Unit of Measure Material Group Gross Weight & its unit Net Weight Volume & its unit Size/dimensions Languages Maintained

2. Sales Org 1 Sales unit Division Tax DataMin.order qty Min. dely qty Rounding Profile

3. Sales Org 2 Matl statistics grp Material pricing grp Acct assignment grp Item category group Product hierarchy Material groups Product attributes

4. Sales : Gen/Plant

Availability check Batch Transportation Group Loading Group

Matl Grp Pack.Matls Profit Center Negative Stock Serial Number

5. Foreign Trade Export

Comm./imp. code no. Export/import group Control code Legal Control

6. Sales text 7. Accounting 1 Valuation Class

Material Price Determination Price Control & Moving price or Standard price

Sales Document TypeSales document type like OR in Sales and distribution mainly controls:

Number range Item No increment Reference mandatory Item division Read info record Document pricing procedure Incomplete messages Alternative sales documents Delivery block Billing block Immediate delivery Subsequent Delivery type

Subsequent Billing type Proposed delivery date Lead time for delivery Proposed pricing date

Plant Determination in sales orderTo determine the plant in a sales order the system checks the master in the following sequence:

Sequence

Master Data

01 Customer material info. record of the sold-to Party

02 Customer master record of the Ship-to Party

03 Material master record of the material

Shipping PointThe following is combination with which shipping point gets determined automatically in a sales order:

Shipping point =

Plant + Shipping Condition (Sold-to-Party)

+ Loading Group (Material master Gen: Plant data)

RouteRoute automatically gets determined in sales order based on following combination:

Route =

Departure Zone (from Shipping Point)

+ Shipping Condition (from Sold-to-Party)

+ Transportation Group (from Material master)

+ Transportation Zone (from Ship-to-Party)

Delivery SchedulingAs name denotes delivery scheduling is scheduling delivery for an order, which carries out through the following important dates:

1. Material availability date2. Transportation planning date3. Loading date4. Goods Issue date5. Delivery date

Availability CheckFollowing are features of availability check:

It is carried out at item level for a plant It is done on the material availability date If material availability date is in the past the forward

scheduling is done, if not backward scheduling is done.

Item CategoryItem category controls behavior of material in sales order. In a sales document, it mainly controls the following:

Relevance for billing of an item

Billing block Pricing relevance Business data relevance item Schedule line allowed Item relevant for delivery Returns Determine cost Credit active Incompletion procedure Partner determination procedure Structure scope (relevant for bill of material explosion) Value contract material Contract release control

The following is combination by which Item Category automatically gets determined in sales order.

Item Category =

Sales Document Type

+ Item Category Group {Material master)

+ Item Usage (if any)

+ Item Category of Higher Level Item (if any)

Schedule Line CategoryEvery item which has a delivery will have a schedule line and the schedule line category is determined with the following rule:

Schedule Line Category =

Item category

+ MRP Type (Material Master)

It mainly controls: Delivery Block Movement type Item relevant for delivery Req/Assembly Availability Product Allocation

Copy ControlIt is normally set for

Header Item Schedule line levels

To control copying procedure we have Data transfer routines Copying requirements Switches

Types of copying control:

S. No

Transaction Code

Source Document

Target Document

1. VTAA Sales Order Sales Order

2. VTLA Sales Order Delivery Document

3. VTFA Sales Order Billing Document

4. VTLF Delivery Document

Billing Document

5. VTAF Billing Document

Sales Order

6. VTFF Billing Document

Billing Document

Pricing ProcedurePricing is an important component in SAP Sales and Distribution. Once an order is entered taking into consideration some major factors, the pricing procedure for the particular order is determined.The major factors or combination is taken into consideration for pricing procedure determination in sales order:

Pricing Procedure Determination =

Sales Area (Sales Organization + Distribution Channel + Division)

+ Customer Pricing Procedure (Customer Master-Sales area data)

+ Document Pricing Procedure (Sales Document Type)

ShippingThe basis for shipping is delivery.Delivery document controls the following in deliveries

Number range Item no increment Storage location rule Route determination Text determination Delivery split Gen. packing material / item Order required

Item category for delivery controls: Check minimum delivery Availability check Relevant for picking Storage location required Determine storage location Automatic batch determination Text determination procedure Packing control Stk determ.rule

BillingBilling is sales process is of the critical integration point between SD and FI Module.It has got the following structure:

1. Header2. Item

It mainly controls: No. range Posting block (to controls posting of invoice to accounting) Relevance for rebate

Account determination procedure Account determination recon account Account determination pay.cards Output determination procedure Cancellation billing type

Account DeterminationAutomatic account determination in SAP Sales and Distribution sales order & billing documents take place based on following combination

Account Determination =

Sales Organization

+ Chart of Accounts

+ Account Assignment Group for Customer

+ Account Assignment Group for Material

+ Account Key

+ G/L Account on which the postings will take place