1. Basics of SAP SD MODULE
SAP Organizational Structure Configuration – SD Module
Mandatory: To check the system year and date before log on to SAP
Trans Code: OMSY (Material Management view on Company codes)
1. Check the period and year for your company code is set as current month and year
Define: Company Code
Credit Controlling Area:Always HO will be the credit control area
Buss.Area
Plant:
Division
Sales Organisation
Dist Channel
Storage Location
Organisation Configuration Settings
Step 1. IMG Screen….>
--Enterprise Structure…)
----Definition……)
-------Financial Accounting (FICO Settings…)
------Define Company Code : INFY, Information Systems,CTRY:In,
Language: En, Currency: INR
------Define Credit Control Area: INFY,Currency: INR, Update: 000018,
FY Variant:K4(Calendar year 4 spec.periods)
------Copy,delete, Check company code: Copy from C Cod:1000 to New
Company code created.(PCIL) ( Tran Code:EC01)
------ Edit Company Code Data: Posit Comp.Code (change View screen)
Click Details View(Ctrl+Shift+F2)
Change Company name and other details.
Save and Enter……
------ Define Buss.Area: New Entries (PCIL-Buss Area PCIL-Blore)
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2. -------Controlling Settings…)
-------Maintain Ctrlg Area: Maintain Ctrlg Area:New Entries
The above screen shows the field entries for maintain Controlling Area.
-------Logistics-General Settings…)
------Define Copy,delete, Check Plant:
Define Plant:New Entries, Plant:PC01
Factory Calendar: GB
Country Code: IN
------Define Division: New Entries,Division: (CH-Channel-Micro)
-------Sales and Distribution ( S & D Settings…)
-----Define Sales Orgn: New Entries,
Sales Orgn: (PCIL-SO for PCIL-Blore)
Country Code: In
-----Define Copy, Delete, Check Distr Chanel: New Entries
Dist.Channel: IM-Disti.PCIL
-------Materials Management ( M & M Settings…)
------Maintain Strg.Loc: Enter Plant: PC01
New Entries: Storg Loc: PBLR-Stor Loc-PCIL, Blore
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3. -------Logistics Execution Settings….
-----Define Copy, Delete, Check Shpng Point: New Entries
Shpng Point.(SBLR)
Cntry Code:In Fctry clndr:GB
The below screen displays the fields to be entered
------Maintain Trns.Plng Point:new Entries, TPPT:PCIL
Cmpy Code:PCIL
Cntry Code:In
End of Definition of Company Code……………….
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What are the differences between cash sales and rush order?
1) Cash sale : in this delivery automatically happen when you save the sales order. After that
you have to give an invoice to the customer.
2) Rush order. Here also delivery automatically happen when you save the sales order. But the
difference is you can send invoice after some time but the delivery should happen
immediately.
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4. If you goto any super market first, you pick up the item and then pay the bill and then you
will get the bill, this process is cash sales.
Cash sales is order related billing whereas RO is delivery related.
Cash sales is not relevant for availability check as you will be picking the goods whereas RO is
relevant for availability check.
Cash sales is also not relevant for credit management whereas RO is relevant credit
management.
Cash sales uses RD03 as output which immediately prints the invoice whereas RO uses
standard output RD00.
Cash sales has one time customer account group where as RO normally doesn't.
For cash sales order type is BV or CS and for RO it is RO
Cash sales triggers petty cash a/c where as in RO customers account is debited.
Delivery and settlement will be done immediately in cash sales where as in RO only delivery
will be done immediatrly.
Rush Order/Cash Sales –
Rush orders and Cash sales are sales document types that are used in the sales from plant
process or when the customer needs to pick their goods immediately from the warehouse.
In the sales document type, the following changes have to be made for rush order/cash sales –
a. order type – RO/CS
b. shipping conditions – immediately
c. immediate delivery – X
d. lead time in days – not to be specified
e. delivery type – LF/BV
f. billing type – F2/BV
g. item category – TAN/BVN
h. schedule line category – CP/CP
In case of rush orders and cash sales once the goods have been withdrawn from the
warehouse, picking and posting goods issue can begin.
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5. In case of rush orders, when you create the billing documents the system prints the invoice
papers and sends them to the customer.
But in case of cash sales, an order related billing index is generated automatically. This
updates the billing due list. Billing type BV is created, while the billing due list is being
processed and the system does not print invoices during billing for a cash sale.
In cash sales when you save the order, the system automatically generates a cash receipt that
can be given to the customer as an invoice and the goods are picked up from the warehouse
immediately by the customer. You control the output with output type RD03, contained in the
output determination procedure for order type CS.
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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
5

6. • 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:
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7. • 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
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8. 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 got the following main masters:
• Customer master
• Material master
• Condition master
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9. • Output master
• Customer material information master
Customer master
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
The chart above shows detail on three main areas of customer master and the tab pages found
under each area.
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
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10. • 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
Plant determination in Sales and distribution:
To determine the plant in an order the system checks the master in the following order:
a) Customer material info. record of the sold-to –party
b) Customer master record of the ship-to-party
c) Material master record of the material
Shipping point determination
The following rule is used in determining shipping point in a sales order :
Plant + Shipping condition (Sold-to-Party) + Loading group Shipping point
Maintained in Material master Gen: Plant data
Route determination
Route determined using the following rule in Sales and Distribution (SAP)
Departure Zone of Shipping Point
+
Shipping condition (Sold-to-Party)
+
Transportation Group (Material master)
+
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11. Transportation Zone (Ship-to-Party)
Route
Delivery scheduling:
As name denotes delivery scheduling is scheduling delivery for an order and it carries the
following important dates:
• Material availability date
• Transportation planning date
• Loading date
• Goods Issue date
• Delivery date
Availability Check in SAP:
• Availability check is carried out at item level for a plant
• Availability check 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 category determination in the order:
Item category denotes the category to which the item belongs and the following rule is used
for determination of item category. Item category controls the way in which item behaves in a
sales document.
Sales document type
+
Item category group (Material master)
+
Item usage
+
Item category of higher level item
Item category of the item
Item category in a sales document mainly controls the following
• Relevance for billing of an item
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12. • 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
Schedule line category:
Every item which has a delivery will have a schedule line and the schedule line category is
determined with the following rule:
Item category + MRP type(Material Master) Schedule line category
Schedule line category mainly controls:
• Delivery Block
• Movement type
• Item relevant for delivery
• Req/Assembly
• Availability
• Product Allocation
Copy Control:
Copy control is normally set for
• Header
• Item
• Schedule line levels
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13. To control copying procedure we have
• Data transfer routines
• Copying requirements
• Switches
Pricing Procedure determination:
Pricing is an important component in SAP-SD. Once an order is entered taking into
consideration some major factors, the pricing procedure for the particular order is determined.
The major factors taken into consideration for pricing procedure determination is:
Sales area
+
Customer Pricing procedure(Customer Master –Sales area data)
+
Document Pricing Procedure(Sales Document Type)
Pricing Procedure
What are the components of pricing procedure?
How is that a person should work on Pricing Procedure?
To start with first
Define a Condition table:
What is a condition table?
A table where the key fields are data combinations for which messages are triggered (and
offered for processing).
For each data combination, there is a condition record in the table. The data part contains the
actual message.
As mentioned above a condition table is a table which carries key fields for picking up the
prices.
Define Access Sequences
The access sequence is a search strategy which the SAP System uses to search for condition
records valid for a condition type.
13

14. For example, you can define for a price that the SAP System first searches for a customer-
specific price and then for a price list price.
Recommendation
· If you define your own access sequences, the key should start with the letter Z since SAP
reserves this letter for the standard system.
· Do not change access sequences contained in the standard SAP R/3 System.
Actions
1. Check to what extent you can use the access sequences contained in the standard SAP R/3
System.
2. Create new access sequences by copying a similar access sequence and changing it
according to your needs. Specify an alphanumeric key which may have up to 4 digits and a
textual description.
3. Maintain the accesses for the access sequence by specifying the condition tables in the
desired sequence. With the sequence, you define the priority of the accesses. You can display
combinations of key fields using possible entries.
4. Generating the accesses is no longer necessary as of 3.0, as this is carried out automatically.
You can generate the accesses manually, if required, by choosing "Utilities".
Example
In pricing, you use a customer-material discount. The condition records you create are based
on customer data from the document header and material data from each document item. The
discount is only valid for 2% of your customers, however. Normally, this would mean that the
system would needlessly search through every available item for 98% of your customers. In
this case, pre step would improve system performance.
Define Condition Type
A characteristic of a condition. For example, in pricing, different condition types are used to
distinguish between a discount that refers to a net price and a discount that refers to a gross
price.
14

15. Price elements are represented in the SAP system by condition types. Price elements can be, for
example, prices, surcharges, discounts, taxes or, freight, and are stored in the system in
condition records.
You can, for example, define whether a discount is calculated as a percentage or a fixed
amount using the condition type.
You specify an access sequence in every condition type. Thus, you define which fields the SAP
system checks when searching for a valid condition record.
Note
• The pricing procedure groups all condition types together which the SAP system is to
automatically take into account during pricing for a business transaction (see the section
"Define and assign pricing procedures").
Remember that you can only specify manually in a document those condition types which are
contained in the pricing procedure.
• You can change the outcome of pricing in the sales document manually. You can limit
options for changing a condition type in this IMG step.
Recommendation
• If you define your own condition types, the key should start with the letter Z since SAP
reserves these letters for that purpose in the standard system.
• Do not change the condition types which are contained in the standard SAP R/3
System.
Actions
1. Check to what extent you can use the condition types contained in the standard SAP R/3
System.
2. Create new condition types by copying a similar conditions type and changing it according
to your requirements. One reason for creating a new condition type is you may require a
calculation rule for a discount which is not available in the standard system.
Specify an alphanumeric key which can have up to 4 digits, and a textual description.
Specify an access sequence for the condition types. You do not need to specify an access
sequence for header conditions.
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16. 3. Maintain the detail screen of the condition type.
You can also assign a reference condition type if the condition types you are working with are
similar. Then you will only have to maintain condition records for the reference condition
type.
In addition, you can define the upper and lower limits for the value of a condition at condition
type level. This way, you limit the amounts or the scale values in the corresponding condition
records.
Define Pricing Procedures
The pricing procedure defines the conditions permitted for a document and the sequence in
which the system takes these conditions into account during pricing.
A standard pricing procedure is defined in the standard SAP system. It contains conditions
most commonly used. These include material prices, discounts, and surcharges, such as
freight, or tax.
SAP Recommendation
· Define your own pricing procedures which contain only those condition types which you
use. Otherwise, the system makes un neccessary accesses to conditions.
· Do not change the pricing procedures contained in the standard SAP R/3 System.
Actions
1. Create new pricing procedures by copying a similar pricing procedure.
o Specify a key with up to 6 characters and a description.
o For a procedure, specify the condition types in the sequence of their usage.
Maintain the lines of the pricing procedure
2. Afterwards define the customer determination procedures for determining the procedure.
3. Define the document pricing procedures for determining the procedure.
4. Assign the procedure to the sales document types and billing types.
5. To determine the procedure, define the allowed combinations of:
o Sales area
o Customer pricing procedure
o Document pricing procedure
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17. o Pricing procedure
Shipping:
The 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
Delivery item category controls:
• Check min delivery
• Availability check
• Relevant for picking
• Storage location required
• Determine storage location
• Automatic batch determination
• Text determination procedure
Billing:
Billing is the last phase in the SD process .Billing is the phase where the major integration of
SD and FI Module happens.
Billing document has got the following structure:
• Header
• Item
Billing documents mainly control:
• No. range
• Posting block (Controls posting to accounting)
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18. • Relevant for rebate
• Account determination procedure
• Account determination recon account
• Account determination pay.cards
• Output determination procedure
Account Determination in SAP
Account determination in SAP-SD happens with the following rule
Sales Organization
*
Chart of Accounts
*
Account assignment group –Customer
*
Account assignment group-Material
*
Account Key
G/L account on which the postings has to happen.
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