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Basics of SAP SD MODULE – Video

Basics of SAP SD MODULE

SAP SD Organization Structure

=========================================
Sales Organization :
Responsible for:
• Distribution of goods and services
• Negotiating Sales Conditions
• Product Liability and rights of recourse
• A sales organization is uniquely assigned to a company code
• Master data’s are separately maintained for a sales organization
• All items in the Sales and Distribution document belong to a sales organization

Distribution Channel:
Means through which products and services reach the customer
A distribution channel:
• Defines responsibilities
• Helps in achieve flexible pricing
• Differentiate Sales statistics

Division:
• A division is used to group products and services.
• A 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.
Sales Organization
Distribution Channel
Division
Sales Area

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

Sales and Distribution is SAP begins with establishing customer relationship and ends with invoicing for the delivery of goods or service provided to the customer

A Standard sales transaction has the following flow:
Inquiry –> Quotation
Order
Delivery
Billing

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

A standard order in SAP contains:
• Customer and material info
• Pricing conditions
• Delivery dates and quantities
• Shipping info
• Billing Info

Inventory sourcing in SAP is taken care by
• Availability check

Shipping in SAP supports
• Outbound delivery creation
• Picking
• Packing
• Post Goods Issue

Billing in SAP supports
• Creating invoices for products and services
• Creating credit and debit memo
• Cancel previously posted billing documents
• Automatically transferring billing documents to accounting

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

Sales Document
A sales document is grouped into three structures
• Header
• Item
• Schedule Line

Outbound delivery
A delivery document is grouped into two structures
• Header
• Item

Several orders can be grouped into same outbound delivery if they have same
• Shipping point
• Delivery date
• Ship-to- address

Picking
• A transfer order is created for an outbound delivery
• A transfer order is created for a warehouse number

Post Goods Issue
When 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

Billing
We can group deliveries into single billing document if the deliveries have same
• Billing date
• Payer
• Destination Country

The effects of billing are
• Debit on the customer receivables account and credit on sales revenue account is created
• Sales information system
• Sales statistics is updated

Master data in SAP

SAP SD has following Master Data elements:
• Customer master
• Material master
• Condition master
• Output master
• Customer material information master

Customer master has following Views:
General Data
Sales Area Data
Company Code data
Address Order Accounting
Control data Shipping Payment
Payment terms Billing Correspondence
Marketing Partner functions Insurance
Unloading points
Export data
Contact persons

Material Master is maintained in different views and important views of sales and distribution are
• Basic data 1
• Sales Org 1
• Sales Org 2
• Sales : Gen/Plant
• Foreign Trade
• Sales text

Sales document in Sales and distribution mainly controls:
• Number range
• Item No increment
• Reference mandatory
• Item division
• Read info record
• Document pricing procedure
• Incomplete messages
• Alternative sales documents
• Delivery block
• Billing block
• Immediate delivery
• Delivery type
• Billing type
• Proposed delivery date
• Lead time for delivery
• Proposed pricing date

SD FLOW/ OVERVIEW:

 

Sales

 

Inquiry – A customer’s request to a company that they provide a quotation or sales information without obligation. An inquiry can relate to materials or services, conditions and if necessary delivery dates. The sales area that accepts the inquiry becomes responsible for further processing.

Quotation – A quotation presents the customer with a legally binding offer for delivering a product or providing a service within certain fixed conditions. This offer is legally binding for the company within a specified time period. A sales area can reply to a customer inquiry with a customer quotation or use it to refer to a business partner contact.

Sales Order – Request from a customer to a company to deliver a defined quantity of products or provide a service at a certain time.

The sales area that accepts the inquiry is responsible for completing the agreement.

Create Delivery:a. Picking – The picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods will be prepared for shipping.

b. Packing – Packing is part of delivery- and shipment processing. When you process a delivery, you can select delivery items for packing and assign them to handling units (HUs).

c. Goods Issue – As soon as the goods leave the company, the shipping business activity is finished. This is illustrated using goods issue for outbound deliveries.

Billing – 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.

 

Sales Order Management Transactions

 

SALES ORDER PROCESSING

Creating Sales Order – VA01

Maintaining a Sales Order – VA02

Displaying a Sales Order – VA03

Releasing an Order or Delivery from Credit Hold: Non-Flooring – VKM1

Display List of RMAs by Customer – VA05

Confirm RMA Goods Receipt – VL02

Generate list of open return orders for deletion – VA05

Display Customer returns eligibility – MCSI

Removing a Billing Block (Approving Credit/Debit Requests) – V.23

 

PRICING MASTER DATA

Create Pricing – VK11

Creating a Sales Deal – VB21

Maintaining a Sales Deal – VB22

Displaying a Sales Deal – VB23

Maintaining Prices – VK12

Displaying Prices – VK13

 

MATERIAL MASTER DATA

Creating Material Substitution Master Data – VB11

Maintaining/Deleting Material Substitution Master Data – VB12

Displaying Material Substitution Master Data – VB13

Creating a Bundled Master – MM01

Creating a Sales BOM – CS01

Maintaining a Sales BOM – CS02

Displaying a Sales BOM – CS03

 

CUSTOMER MASTER DATA

Creating Partner Records – XD01

Maintaining Customer Master Data – XD02

Displaying Customer Master Data – XD03

Deactivating a Partner – VD06

 

CUSTOMER CREDIT INFO

Creating/Maintaining New Customer Credit Information – FD32

Displaying Customer Credit Information – FD33

Blocking or Unblocking a Customer – VD05

 

SHIPPING

Creating a Delivery – VL01N

Displaying a Delivery – VL03N

Changing a Delivery – VL02N

Shipment Inquiry / Display – VT03

Adjusting Transfer Order – Confirmation Quantity – LT12

Collectively Confirm Transfer Order – LT25

Batch Shipment Confirmation – VL19

PGI Reversal Cancellation – VL09

Creating Service Provider/Carrier Master Data – XK01

Maintaining Serive Provider/Carrier Master Data – XK02

Displaying Service Provider/Carrier Master Data – XK03

Maintaining Product Master/Serial # Profile/Unit of Measure/Shipping Unit – MM02

IDoc Inquiry – WE02 / WE05

 

BILLING

Invoicing a Customer Shipment – VF01

Reprinting an Invoice – VF31

Releasing a Sales Order for Billing – V.23

Creating an Invoice by Using the Billing Due List – VF04

Checking Open Billing Documents – VF05

Create Credit/Debit Memo – FB01

 

A/R

Controlling Total Debit/Credit bkgs – F.03

Generate FI Account balance – F.08

Generate Month-to-date Inv. register – F.02

Process payments – FBZ1

Rqst Individual Customer Corresp. – FB12

Generate Customer Correspondence – F.61

Enter Batch totals under Control ttl – FB07

Display G/L Acct. totals – FBL3N

Reverse Posted Amounts – FB08

Customer Refunds – FBL6

Customer Refund to other than Payer – FB05

Clearing Debit/Credit on Cust. acct. – FB1D

Customer Balance in Local Currency – F.23

G/L Account Balance Report – F.08

Create Invoice – legal entity adjust – FB01

Generate Cust. Acct. statements – F.27

Generate Dunning Letters – F150

Generate Billing Due List – VF04

Generate Blocked Billing Doc list – VFX3

Inq. via Credit Release Screen – VKM1

List orders by partner – VA05

Past Due invoices by customer – FD11

Check number info by G/L account – FBL3N

Display customer Line items – FBL5N

SD Configuration:

 

Enterprise Structure:

 

1. Maintaining Sales Organization

Sales Organization is an organizational unit responsible for the sale of certain products or services.

IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check Sales organization

 

2. Assigning Sales Organization to Company Code

This assignment ensures all the sales made through this Sales Organization are accounted for in the assigned Company Code (Company Code is created by FI Consultant).

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales Organziation to Company Code

 

3. Maintaining Distribution Channel

Distribution Channel is the way, in which Products or Services reach Customers.

IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check distribution channel

 

4. Assigning Distribution Channel to Sales Organization

This assignment ensures, a Sales Organization can supply Materials to Customers through this Distribution Channel.

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution > Assign distribution channel to sales organization

 

5. Maintaining Division

Division is a way of grouping materials, products, or services.

IMG -> Enterprise Structure -> Definition -> Logistics – General -> Define, copy, delete, check division

 

6. Assigning Division to Sales Organization

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign division to sales organization

 

7. Setting up Sales Area

All the sales are made from a particular sales Area. For creating a Sales Order Sales Area is compulsory.

IMG ->Enterprise Structure -> Assignment -> Sales and Distribution -> Set up sales area

 

8. Assigning Sales Organization- Distribution Channel- Plant

Plant is created ny MM Consultant.

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales organization – distribution channel – plant

 

9. Define Shipping Points

Shipping Point is the Organizational element, which is responsible for shipping the Materials to the Customers.

IMG -> Enterprise Structure -> Definition -> Logistics Execution -> Define, copy, delete, check shipping point

 

10 Assigning Shipping Point to Plant

This assignment ensures that goods from different Plant can be dispatched from different Shipping Points.

IMG -> Enterprise Structure -> Assignment -> Logistics Execution -> Assign shipping point to plant

 

Note: Ensure to do the undermentioned configuration also though it is not in Customizing node of Enterprise Structure.

 

11. Defining Common Distribution Channels for Master Data

Use

The purpose of this activity is to define distribution channels which have common master data..

 

Procedure

Access the activity using one of the following navigation options:

IMG Menu -> Sales and Distribution -> Master Data -> Define Common Distribution Channels

Transaction Code: VOR1

 

12. Defining Common Divisions for Master DataUse

The purpose of this activity is to define distribution channels which have common master data..

 

Procedure

Access the activity using one of the following navigation options:

IMG Menu -> Sales and Distribution -> Master Data -> Define Common Division

Transaction Code: VOR2

 

Pricing Procedure

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master. Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing, system will through an error message.

 

In SD, the steps to configure Pricing procedure are as under:

Step 1:

Condition table: If existing condition table meets the requirement, we need not create a new condition table. Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG –> Sales & Distribution –> Basic Function –> Pricing Control –> Condition Table (select the required fields combination, which will store condition record).

Step 2:

Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence. Considering the requirement for new sequence, the configuration will be done in spro as follows: IMG –> Sales & Distribution –> Basic Function –> Pricing Control –> Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to access sequence.

Step 3:

Condition Type: If existing condition type meets the requirement, we need not create a new condition type. Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG –> Sales & Distribution –> Basic Function –> Pricing Control –> Condition Type. It is always recommended to copy an existing similar condition type & make the neccessary changes. Here we assign Access sequence to Condition type.

Step 4:

a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in spro as follows: IMG –> Sales & Distribution –> Basic Function –> Pricing Control –> Pricing Procedure –> Maintain Pricing Procedure.

b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows: IMG –> Sales & Distribution –> Basic Function –> Pricing Control –> Pricing Procedure –> Determine Pricing Procedure.

5. Condition record: Condition record is a master data, which is required to be maintained by Core team / person responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT, LSMW, etc.

 

Normal Sales Order Cycle:-

 

Step 1: Sales Document Type

IMG > Sales and Distribution > Sales > Sales Documents >

Sales Document Header:

1. Sales Document Type:The sales document types represent the different business transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order type, always copy as with reference to similar sales order. If possible use standard sales order.

2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.

3. Assign Sales Area To Sales Document Types:

A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these, else Sales Order creation will give error.

B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required Sales Area. This will minimize selection of Sales Order Type as per sales area.

 

Sales Document Item:

1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as from standard & maintain New.

2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category

 

Schedule Line:

1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new, copy as from standard & maintain New.

2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item Category + MRP Type / No MRP Type.

 

Step 2:

IMG > Logistic Execution > Shipping > Deliveries >

1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Item Categories for Deliveries: If possible use Standard Item Categories for Delivery Type. Incase if required to create new, copy as from standard & maintain New.

3. Define Number Ranges for Deliveries: Ensure to maintain number range.

 

Step 3:

IMG > Sales and Distribution > Billing >

1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Number Range For Billing Documents: Ensure to maintain number range.

3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to Billing, Deliver to Billing, etc.

he configuration differs from scenario to scenario & requirement of the client.

 

Interesting &important link to learn much more about configuration & business process is as under:

Link: http://help.sap.com/

 

Path: SAP Best Practices –> Baseline Packages –> Based on SAP ECC 5.00 –> Select Country: for eg, Localized for India –> Technical Information –> Building Blocks –> Select Country for eg, India –> List of Basic Configuration & scenarios will be listed.

 

Select the required basic configuration / scenario. These will consist of overview, configuration guide, business process, master data &so on.

 

 

 

SD FLOW

 

SD Flow Cycle:

 

INQUIRY ( VA11)

|

QUOTATION (VA21)

|

PURCHASE ORDER (ME21)

|

ORDER CONFIRMATION (VA01)

|

PICKING LIST – (VL36)

|

PACKING LIST – (VL02, VL01)

|

SHIPPING – (VT01)

|

INVOICE – (VF21, VF01)

|

AR

 

2.Hope aware that SAP- SD itself the Big one.try to Explore the various Scenarios in SD and be Stong in Some Areas like Pricing, Intercompany Billing, Third Party Sales, LSWM, EDI Etc.,

 

3.The link between SD and MM: –

 

1. When you create sales order in SD, all the details of the items are copied from Material master of MM.

 

2. MRP and availability check related data is also taken from MM although you control this data in SD also.

 

3. While you create inbound/outbound delivery with reference to a sales order, the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.

 

4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.

 

There are many such links between SD and MM.

SD INTEGRATON WITH MM

1a. Looking at MM and SD interaction first, take the scenario of a third party order process. This process uses a purchase order (which is sent to your vendor). Also invoice verification is used further along the process to check that the invoice you send to your customer is the same material and quantity as that which the vendor sends to you (but obviously shipped

directly to your customer).

 

1b. Billing is an SD function. But SAP needs to know, when processing a customer’s payment, to which GL account the payment has to be processed. For instance payment of a UK based material would be placed in a different GL account to that of a non-UK based material. Furthermore, a UK based customer may have a different GL account to that of an Export customer. This is configured in Account Determination.

 

2. ABAPers are there to essential do some bespoke development. Your integration, or interaction, with them would be when specifying the tables, fields, input fields, a simple process explanation, data mapping (if doing an interface from one system to another) etc. *– Shahee

 

The link between SD and MM :-

 

1. When you create sales order in SD, all the details of the items are copied from Material master of MM.

 

2. MRP and availability check related data is also taken from MM although you control this data in SD also.

 

3. While you create inbound/outbound delivery with reference to a sales order, the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.

 

4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.

 

There are many such links between SD and MM

 

In Pricing we would want to determine the cost of the product

thru VPRS Condition Type. This cost of the material is

picked from the Material Master. How this happens is, if

we would want to determine this cost VPRS in the Sales Order

for Profitability purpose then , all those Item categories

that can appear in a sales order must be activated for