SAP SD Fundamentals

SAP-SD
SUN SURYA TECHNOLOGIES Ph: 040-69996677, 9246188809
SAPSALES & DISTRIBUTION
ByByByBy
The One & Only OneThe One & Only OneThe One & Only OneThe One & Only One
Mr. Srinivas Naidu
SD Guru
SD Certified Consultant
SUN SURYA
Technologies

SAP-SD

SAP-SD
Index
SL.NO TOPIC PAGE NO
1 INTRODUCTION 1
2 SALES & DISTRIBUTION 4
MODEL OF ENTERPRISE STRUCTURE 4
BUSINESS PROCESS 5
DEFINITIONS 6
ASSIGNMENTS 11
3 MASTER DATA 14
CUSTOMER MASTER
MATERIAL MASTER 28
4 DOCUMENTS 32
SALES DOCUMENT HEADER 36
ITEM CATEGORY 49
ASSIGN ITEM CATEGORIES 53
DEFINE SCHEDULE LINE CATEGORIES 53
5 P R I C I N G 60
DEFINE PRICING PROCEDURE (OVKK)
SYSTEM MODIFICATIONS 72
PRICING EXERCIES 74
6 FREE GOODS 84
SD CONFIGURATION SETTINGS 94
7 ROUTE DETERMINATION 96
8 OUTPUT DETERMINATION PROCEDURE 99
ASSIGN OUTPUT DETERMINATION PROCEDURE 102
9 TEXT DETERMINATION PROCEDURE 103
TEXT DETERMINATION PROCEDURE FOR SALES DOCUMENT
HEADER
104
10 PARTNER DETERMINATION PROCEDURE 106
ASSIGN RELEVANT PARTNER FUNCTIONS FOR PARTNER
DETERMINATION PROCEDURE
108
DEFINE PARTNER DETERMINATION PROCEDURE FOR SALES
DOCUMENT HEADER
109
11 INCOMPLETNESS PROCEDURE 110
12 MATERIAL DETERMINATION 112
13 CROSS SELLING 114
14 ITEM PROPOSAL AND PRODUCT PROPOSAL 117
15 CREDIT MANAGEMENT / RISK MANAGEMENT 119
SIMPLE CREDIT CHECK 126
AUTOMATIC CREDIT CHECK 128
16 TRANSFER OF REQUIREMENT AND AVAILABILITY CHECK 132

SAP-SD
SL.NO TOPIC PAGE NO
17 COPY CONTROL 137
18 C O N T R A C T S 141
A) VALUE CONTRACT (WK1) 143
B) SERVICE CONTRACT (WV) 145
C) MASTER CONTRACT 148
19 CUSTOMER COMPLAINTS 150
20 CONSIGNMENT 154
21 INTER COMPANY / CROSS COMPANY SALES 156
22 THIRD PARTY SALES ORDER 157
23 INDIVIDUAL PURCHASE ORDER 159
24 DEFINE DELIVERY DOCUMENT 160
25 PACKING 165
26 RETURNABLE PACKAGING 167
27 BILLING DOCUMENT TYPE 169
28 MAKE – TO - ORDER 173
29 VARIANT CONFIGURATION 174
30 REBATES 185
31 LOGISTICS INFORMATION SYSTEM (L I S) 189
32 STOCK TRANSFER ORDER (STO) 193
33 BATCH MANAGEMENT 200
34 BILL OF MATERIAL (BOM) 203
35 FAQ 204

SAP-SD 1
SASASASAPPPP
SAP : SAP is SYSTEMS APPLICATIONS AND PRODUCTS in Data Process
Different Modules in SAP are
1. FI & CO (Finance and Control)
2. S D (Sales and Distribution)
3. M M (Material Management)
4. Q M (Quality Management)
5. P M (Production Management)
6. H R (Human Resources)
PROGRAMME: It’s collection of Executable Statements / Instructions to the
System.
PACKAGE: It’s collection of Programmes & Functions.
• MS Office
• ATM Applications
• Railway Reservation System
The above packages can use end users / compute illiterates.
ERP : Expansion of ERP is ENTERPRISE RESOURCE PLANNING.
Enterprise : Well Established Organization.
Resource : Man ---- HR
Material ---- Stores / Purchases
Money ---- Finance
Machines ---- Mechanism
Methods ---- Planning
Goals and Objectives: Productivity
Cost of Production
Increasing Performance
Customer Satisfaction
The major ERP vendors are:
SAP R/3
ORACLE
PEOPLESOFT
JDEDWARDS
BAAN

SAP-SD 2
ERP Package Finance ORD MGMT INV MFG HR
ORACLE U X X X X
PEOPLESOFT X X X X U
JDEDWARDS X U X X X
BaaN X X X U X
SAP R/3 U U U U U
ROOTS OF SAP
4 IBM people developed the SAP in 1972.
SAP R/3 : It’s a German based product.
SAP AG : AG stands for Incorporation in USA
AG stands for Company in INDIA
IDES: Internet Demonstration and Evaluation System.
R/3 stands for Real time 3 tier architecture. Tier is nothing but a scope of
computer.
Single Tier: Single Tier means Standalone System. Ex: PC
Database Layer
Application Layer
Presentation Layer
Database Layer is Back end
Presentation Layer is Front end.
Two Tier Architecture:
Database Layer
Application Layer
| | | | |
CL1 CL2 CL3 CL4 CL5 (CL – client)
Three Tier Architecture:
Database Layer
WP WP WP WP
Despatcher
CL1 CL2 CL3 CL4 CL5

SAP-SD 3
SAP 2 Tier is IBM Mainframes.
SAP has own database is called SAPDB. It’s having 28,173 default tables.
ABAP – Advanced Business Application Programming
______________________________________
| | | | |
FICO S & D MM PP HR Functional Module
|
Basis Admin
ROLES OF AN ABAPer:
Every ABAPer has 3 roles.
1. Uploading the Data from LExacy system to R/3
BDC ---- LSMW
2. System Modifications
User Exit -- Screen Exit, Field Exit, Menu Exit and Customer Exit.
3. Generating Reports.
Implementation Partner Client
| |
SAP Team Ex: Dr Reddy Labs
(Steering Committee) (Core Team)
Technical Consultants CEO
Functional Consultants GM
Basis HODS
End users
Feasibility study between Steering committee and Core Team.
BBP Business Blue Print.
Core Team gives their requirements to Steering Team,
Steering Committee prepares the Business Blue Print i.e called BBP.
Dev. Server Q I A PROD
---->Issues
Config Unit Testing Product Support
+ Functional Tools
Customize Smoke Volume PerExrine
B B P Lotus Notes
Remedy

SAP-SD 4
S D (Sales & Distribution)
ENTERPRISE STRUCTURE
COMPANY (Corporate Office)
--------------------------------------------------------------------------
| | |
| | |
------------------- Company Code 1 Company Code 2 Company
Code 3
| |
| -------------------------
| | | | |------ Sales Organization
| Sales Sales Sales |------ Distribution Channel
| Area 1 Area 2 Area 3 |------ Division
| |
| ------------------------------
| | | |
| Sales Sales Sales
| Office 1 Office 2 Office 3
| |
| ---------------------------
| | | |
| Sales Sales Sales
| Group 1 Group 2 Group 3
|
|
| |----------------------------|
|
--------------------------------
| | |
---------- Plant 1 Plant 2 Plant 3
| |
| ---------------------------
| | | |
| Storage Storage Storage
| Loc 1 Loc 2 Loc 3
|
|
|--------------------|
|
--------------------------------
| | |
Shipping Shipping Shipping
Point 1 Point 2 Point 3

SAP-SD 5
BUSINESS PROCESS
Inquiry
|
Quotation
|
Purchase
Order
|
Sales
Order
|
Outbound
Delivery
|
Sales
Invoice
I. Define Enterprise Structure
II. Master Data
(a) Customer Master
(b) Material Master
(c) Customer Material Info – Records
(d) Pricing Condition Records
III Configure Documents
(a) Sales Documents
(b) Deliver Documents
(c) Billing Documents
To Configure and Customize SAP : SAP design certain tools. That are
(a) ABAP (Work bench) - for Technical Consultants
(b) I M G (Implementation Guide) – for Functional Consultants
(c) Administration (BASIS)
To navigate from screen to screen or transaction to transaction we use transaction
code or specified Path.
SPRO is a Transaction Code to go to IMG Tool.
PATH:
Logistics
Tools
Customizing IMG
SPRO Edit Project
SAP reference IMG

SAP-SD 6

SAP-SD 7
DEFINITION
1.DEFINE COMPANY (RCOMP) : Company is an highest Organizational Unit in the
enterprise structure. It represents Corporate Group.
PATH:
IMG
Enterprise Structure
Definition
Financial Accounting
Define Company
Select standard company (1000) click on copy as icon and define company by
changing data.
2.DEFINE COMPANY CODE (BUKRS): Company code is an independent
Organizational Unit. Which is responsible look after Business Transaction in specified
geographical Area.
Which represents subsidiary of company which is having its own set of Database tables
from where we can generate reports like Balance Sheets and Profit & Loss A/cs and we
can consolidate those reports at this level.
Company can have no of company codes. That means company
codes should be assign to company. Company and Company codes define and
maintain by FICO.
PATH:
IMG
Definition
Edit, Copy, Delete, Check Company Code
Edit Company Code Data.
Choose existing company code ex:1000 click on Copy as icon and define company
code by changing data.
3.DEFINE SALES AREA (TVTA) : TVTA is the Table for sales area. Sales Area is a
Logical Collection of 3 physical organizational units. That are :
(a) Sales Organization
(b) Distribution Channel
(c) Division.
We use Sales Area to maintain Master Data,to configure documents to process
documents (by Customer) and to generate reports. Sales Area defines which division
(Material) passes through which distribution channel under which sales organization to
the customer.
(A).DEFINE SALES ORGANISATION (VKORG): Sales Organization is the
independent Organizational Unit in SD module. Which is responsible to process
business transactions with in specified geographical area and also it is responsible to
look after lExal obligations with in the specified area.

SAP-SD 8
Sales Organization can have no of distribution channels and divisions.
Company code can have no of sales organizations. Sales OrganizationsShould
assign to company code.
PATH:
IMG
Definition
Sales & Distribution
Define, Copy, delete, check sales organization.
Define Sales Organization
Choose existing sales organization ex:1000 click on copy as icon and define sales
organization by changing data.
STATISTICS CURRENCY (INR): Assign statistics currency the particular Sales
Organization follows.
CUSTOMER INTER COMPANY BILLING:
COMPANY
|
------------------------------------------
| |
Company Code 1 Company Code 2
(IND) (USA)
| |
Sales Area 1 Sales Area 2
| |
Plant 1 Plant 2
CROSS COMPANY / INTER COMPANY BILLING:
Step 1 : End Customer of Sales Area 1 under company code 1 raise the Purchase
Order
to purchase the material.
Step 2 : Sales Area 1 raised the Sales Order to sell the material with reference to
Purchase Order.
Step 3 : When there is no stock in Plant 1, then Sales Area 1 has to raise the
Purchase
Order to purchase the material from Sales Area 2 under Company Code 2.
Step 4 : Sales Area 2 raised Sales Order and directly delivered the goods to the end
Customer of Sales Area 1.
Step 5 : Sales Area 2 raised Inter Company Invoice in favor of Sales Area 1. Sales
Area 1 raised the standard Invoice in favour of end customer and settles
Inter Company Invoice.
To map Inter Company Transactions one customer should be created in SAP and he
should be assign to Sales Organization in IMG.

SAP-SD 9
PATH:
IMG
o Sales & Distribution
o Billing
o Inter Company Billing
o Define internal customer no by Sales Organization.
Sales Organization Calendar ex:01 Factory calendar of German Standard:
Assign Factory calendar that usually Sales Organization follows. There we can
define Public holidays, holiday calendar and working days.
Check Rebate Processing Active:
RABATE: Rebate is a special kind of discount which is going to paid to the customer
/ payer based on certain period respectively.
FAQ: What are the pre-requests to configure rebates in SAP System?
Ans: There are 3 controls should be activated to configure rebates. I.e
(a) Check rebate processing active should be activated at definition of Sales
Organization.
(b) Check rebates should be activated at customer master/payer.
(c) Check relevant for rebates at definition of billing document type ex: F2
Note: Due to performance reasons these 3 controls should be re-activate if client
doesn’t process rebated in his business.
(B).DEFINE DISTRIBUTION CHANNEL (VTWEX): Distribution Channel is the
channel which business sends goods and services to the customer. Ex: Plant Sales,
Depot Sales and Showroom Sales.
Sales Organization can have no of distribution channels. That
means distribution channel assign to sales organization.
PATH:
IMG
Definition
Define, Copy, delete, check distribution channel
Go to new entries and define distribution channel e.g.PS : Plant Sales SS : Show
Room Sales Save it and go back.
(C).DEFINE DIVISION(SPART): Division is nothing but a range of product.Material
Masters are going to be maintain with specific to division. Sales Organization can
have no of divisions. That means division should be assign to Sales Organization.
PATH:
IMG
Definition
Logistics – General
Define, Copy, delete, check division.
Define division.

SAP-SD 10
Go to new entries and define divisions.e.g FW :Four WheelerTW : Two Wheeler
Save it and go back.
4.DEFINE SALES OFFICE (VKBUR): Sales Office nothing but geographical aspect
of Sales Area. Sales Area can have no of Sales Offices, that means Sales Office
should be assign to Sales Area.
PATH:
IMG
Definition
Maintain Sales Office.
Choose existing Sales Office Ex: 1000,Click on copy as icon and define Sales Office
(Ex:MSO) Save it and go back.
5.MAINTAIN SALES GROUP (VKGRP): Group of Sales Employees or an Physical
Organizational Unit (Branch Office) can be define as a Sales Group. Sales Office
can have no of Sales Groups. That means Sales Group should be assign to Sales
Office.
PATH:
IMG
Definition
Maintain Sales Group.
Go to new entries and define Sales Group (SD1). Save it and go back.
Note: Sales Area, Sales Office, Sales Group and Shipping Point define and maintain
by
SD Consultants.
6.DEFINE PLANT (WERKS): Plant is an highest organizational unit in MM Module.
Which is responsible to make a plan and to manufacture materials. One Sales
Organization can sell materials from no of plants, that are define under different
company codes.Company code can have no of plants, that means Plant can be
assign to company code.
FAQ: Can we sub-divide Plant?
Ans: Yes, it can divide into different no of storage locations.
PATH:
IMG
Definition
Define, Copy, Delete, Check Plant
Define Plant

SAP-SD 11
Choose existing Plant ex:1000,Click on copy as icon, define our plant by changing
data.
7.MAINTAIN STORAGE LOCATION (LGORT):
Storage location nothing but a sub-division of plant. Where we can
maintain Raw-Material, Finished Products and Scrap. Plant can have no of storage
locations that means Sales Location should be assign to Plant.Plant/Storage
Location combination assign to Warehouse Complex.
FAQ: Can we assign 1 storage location that has been define under 1 plant to another
plant?
ANS: No.
PATH:
IMG
Definition
Materials Management.
Maintain Storage Location.
Specify the Plant under which the storage location is going to be defined in work area
go to new entries and define storage location (SL1) save it and go back.
Note: Plant and Storage Location defined and maintained by MM Consultants.
8.DEFINE SHIPPING POINT (VSTEL):
Shipping Point is an independent organizational unit in SD module. Which is
responsible to process inbound and outbound deliveries.
A delivery can/should take place from one shipping point. Every shipping point has
its own organizational data. Ex: Factory calendar, ship timings, picking, packing and
loading times etc.
Plant can have no of shipping points. That means shipping point should be assign to
plant.
PATH:
IMG
Definition
Logistics Execution
Define, Copy, Delete, check shipping point.
Define shipping point.
Choose existing shipping point. Ex:1000Click on copy as icon and define shipping
point by changing the data. (MSP)
Note: Shipping Point can be group of employees or physical organizational unit
Which is responsible to process deliveries

SAP-SD 12
ASSIGNMENT
1.Assign Company Code to Company:
PATH:
IMG
Assignment
Assign company code to company.
Choose our company code from position (MUL1) and assign company.
2.Assign Sales Organization to Company Code:
PATH:
IMG
Assignment
Assign Sales Organization to Company Code
Choose our company code from find button (MUL1) select it and click on assign icon
and choose our Sales Organization from the list. Save it and Exit.
3.Assign Distribution Channel to Sales Organization:
PATH:
IMG
Assignment
Assign Distribution Channel to Sales Organization.
Choose our Sales Organization (MUHO) from find button, select it, click on assign
icon and select distribution channels (PS and SS) from the list. Save it and Exit.
4.Assign Division to Sales Organization:
PATH:
IMG
Assignment
Assign Division to Sales Organization.
Choose our Sales Organization (MUHO) from the find button, select it, click on
assign icon and choose our divisions from the list. Save it and go back.
5.Set Up Sales Area (TVTA):
PATH:
IMG
Assignment
Set Up Sales Area.

SAP-SD 13
Choose our Sales Organization (MUHO) from find button, select it , click on assign
icon and choose 2 Distribution channels from the list, select one distribution channel,
click on assign icon and choose 2 Divisions from the list.
Repeat the same process for another distribution channel also. Save it and Exit.
6.ASSIGN SALES OFFICE TO SALES AREA:
PATH:
IMG
Assignment
Assign Sales Office to Sales Area
Choose our Sales Organization (Sales Area) from find button and select 1 Sales
Area, click on assign icon and choose our Sales Office from the list.
Repeat the same process for another 3 Sales Areas also. Save it and Exit.
7.ASSIGN SALES GROUP TO SALES OFFICE:
PATH:
IMG
Assignment
Assign Sales Group to Sales Office
Choose our Sales Office from find button, select it and click on assign icon, select our
Sales Group from the list. Save it and Exit.
8.ASSIGN PLANT TO COMPANY CODE (M M Assignment):
PATH:
IMG
Assignment
Logistics - General
Assign Plant to Company Code.
Choose our Company Code from find button, select it, click on assign icon, select our
plant from the list. Save it and Exit.
9.SETUP SALES LINE: Sales line is the combination of single Sales Organization,
single Distribution Channel and single Plant. Sales line allows the system to sell
materials from different plants.
It is a pre-requisite for Cross Company Sales.

SAP-SD 14
PATH:
IMG
Assignment
Assign Sales Organization – Distribution Channel – Plant
Choose Sales Organization from the find button, select the combination, click on
assign icon and choose our plant from the list. Repeat the same process for another
combination also. Save it and Exit.
10.ASSIGN SHIPPING POINT TO PLANT:
PATH:
IMG
Assignment
Logistics Execution
Assign Shipping Point to Plant
Choose our Plant from find button, select it, click on assign icon and select our
Shipping Point from the list. Save it and Exit.
ECO1 Transaction code for display the company structure.
PATH:
IMG
Definition
Edit, Copy, Delete, Check Company Code
Copy, Delete, Check Company Code
Click on Organizational Structure
Click on Navigation
Choose our Company Code (Double Click or Choose)

SAP-SD 15
MASTER DATA
Master Data is pool up data. That is going to be created centrally in the System and
made available for documents.
Master data doesn’t change frequently.
CUSTOMER MASTER: We maintain customer details in the form of master data.
Every customer master has a structure, that means it is made up with 3 sections i.e
(a) General Data Section (KNA1): In general data section customer personal
details like Name, Address, Postal Code etc is going to be captured.
KUNNR is the field in KNA1 table where the customer number is going to be stored.
(b) Company Code Data Section (KNB1): In company code data section customers
financial details like reconciliation A/C no, Bank A/C no, Insurance No etc., is going to
be stored.
© Sales Area Data Section (KNVV): In Sales Area data section customer’s Sales,
Shipping, Billing details are going to be captured.
KNBP is a table for customer’s partner functions.
KNVS is a table for customer’s shipping details is going to be stored.
ACCOUNT GROUP: According to “Partner Functions” to each and every partner
one account group is going to be defined and maintained by FICO Consultants.
By using account group we can control customer master. By changing or assigning
“Field Status” to each and every field in the customer master.
FIELD STATUS:
SUPRESS: It hides the field from the Customer Master.
REQUIRED: Value should be maintained.
OPTIONAL: Value may be or may not be maintained.
DISPLAY: Field can be view.
PARTNER FUNCTIONS: In addition to natural partners business treats customers.
a) Customers (KU)
b) Vendors (LI)
c) Contact Persons (AP)
d) Sales Employee (PE)
Also as a business.

SAP-SD 16
Depending upon the partner type every partner has to fulfill /perform certain
mandatory partner functions. While making transactions with business.
Ex :
(A) CUSTOMERS (KU)
---------------------------------------------
SP SH BP PY
| | | |
Sold to Ship to Bill to Payer
Party Party Party
NUMBER RANGES: To identify the customer we require a unit identifier. i.e
Number. We define one no. range and assign to Account Group with or without
external option. Depending upon the external option system or user has to assign
number internally or externally.
Account
Group
Partner Function Number Number
Range
Current
Number
Extension
0001 Sold To Party 10 101-200 0
0002 Ship To Party 20 201-300 0
0003 Bill To Party 30 301-400 0
0004 Payer 40 401-500 0
DEFINE ACCOUNT GROUPS (OBD2):
PATH: IMG
Accounts Receivable and Account Payable
Customer Accounts
Master Data
Preparations for Creating Customer Master Data
Define Account Groups with Screen Layout (Customers)
Select Account Group 0001
Go to details icon, account group 0001 : Name Sold to Party
Check one time Account | |, check account one time A/c if customer belongs to one
time A/c holder.
Output Determination Procedure: Ex:
DB0001 Output for Sold to Party
DB0002 Output for Ship to Party
DB0003 Output for Bill to Party
DB0004 Output for Payer
In SAP we sent different output types, (Inquiry, Quotation, Order confirmation) to
relevant partners (Sold to Party, Ship to Party) thru various transmission mediums.
Ex:(Print, Fax, Email, Telex, EDI etc.,)

SAP-SD 17
Output can be determined by using component output determination procedure.
System should know from where the output from the determined, whether from IMG
or from Customer A/c Group, depending upon the control that we activate or de-
activate. i.e “CHECK ACCESS TO CONDITIONS” in definition of output type.
Maintain field status as in General Data, Company Code Data, Sales Area Data.
DEFINE NUMBER RANGES FOR CUSTOMER ACCOUNT GROUP:
PATH: IMG
Accounts Receivable and Account Payable
Customer Accounts
Master Data
Preparations for Creating Customer Master Data
Create number ranges for Customer A/Cs (XDN1)
Click on Change intervals.
Click on insert intervals icon
Specify number range key - specify lower limit of number range and upper
limit of
Number range and specify current no status as a 0(Zero).
Check external option (If the user has to assign number externally)
Save it.
ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUPS:
PATH: same as above and choose our account group 0001 and assign our number
range key, that we defined in the previous step (07). Save it and Exit.
Partner Determination:
Path: IMG
Basic Functions
Partner Determination
Setup Partner Determination
Set up Partner Determination for Customer Master
Go to New Entries
Define Partner Determination Procedure
Ex: Sold to Party
Select Partner Determination
Double Click on Partner Functions in Procedure
Go to New Entries
Partners SH, BP, PY and press enter
Click on Partner Determination Procedure Assignment

SAP-SD 18
Select our Customer Group
Click on Partner Functions
Double Click on Account Group Functions
Go to New Entries and
Assign Partner Functions
Ex: SP Account Group (ASRI)
SH Account Group (ASRI)
BP Account Group (ASRI)
PY Account Group (ASRI)
Customer Master can be Created.
XD01 XD02 XD03
VD01 VD02 VD03
Create Change Display
If you use XD01 then Customer Master is going to be created centrally, that means
Company Code data should be maintained.
If you use VD01, then Customer Master is going to be created with specific to Sales
Area, that means Company Code can not be maintained.
PATH: Logistics
Master Data
Business Partners
Customer
Create VD01 or XD01
ACCOUNT GROUP: Choose Account Group ex:0001 from Account Group overview
icon, double click.
CUSTOMER: (Internal or External) Specify Company Code and Sales Area.
Maintain data in General data session like Name, Address etc., maintain data in
Company Code data session.
Tab1 --- Accounting Management:
Reconciliation Account No: 14000 (nothing but a GL No.)
The value of this field used by the system to post Sales Revenues of this customer in
respective GL A/c.
Sort Key 003 : Sort Key can be used to list out line items of the Customer.
Tab2 --- Payment Transactions: Check Payment history records. This control
allows the system to record payment details of this customer in FD32 (Transaction
Code / Customer Master).

SAP-SD 19
MAINTAIN DATA IN SALES AREA DATA SECTION:
SALES TAB: Assign Sales District of a Customer. The value of this field used by
the system for statistical information purpose.
PATH: IMG
Master Data
Business Partners
Customers
Sales
Define Sales Districts
Go to new entries > Define Sales Districts
Assign Sales Organization to Sales Group that we defined in IMG. The values of this
fields used by system for statistical information purpose.
CUSTOMER GROUP (KDGRP): Ex: 01 Industrial Customer. Grouping of the
customer to carry out pricing and to generate statistical reports.
PATH: IMG
Master Data
Business Partners
Customers
Sales
Define Customer Groups
Go to new entries and define Customer Group.
ABC CLASS (KLABC): Classify in the customer for ABC Analysis.
CURRENCY (INR): System propose currency by default by depending upon the
Sales Organization statistical currency.
Switch off / Switch on rounding: It is a control to apply rounding profile to the
customer.
ORDER PROBABILITY: Ex: 100% together with Sales Order probability system
determines the chances of completion of line item in the Sales Order.
Ex: If customer makes inquiry, then there is a chances of 30% that he will ask the
Quotation. If Quotation raised, then there is a chances of 70% that he raises the
Purchase Order. Once he raised the Purchase Order, then chances of 100% to
raise Sales Order.
AUTHORIZATION GROUP: In IMG with help of BASIS Consultants we define
authorization to a specific user (IN SUOI), user master records) by which by user can
be restricted from accessing this object (Customer Master).

SAP-SD 20
ITEM PROPOSAL / PRODUCT PROPOSAL: This is the concept by which user can
place the order on behalf of the customer have been rExularly purchases same
materials with or without default quantity. It works as a order entry tool. We create
item proposal discounts in VA51, where by using document type PV where we
create. When we list out all the materials that customer rExularly purchases and we
assign the document number in Customer Master Sales Area Data Section sales tab
item proposal field. During Sales Order processing user uses option “PROPOSAL
ITEMS”.
ACCOUNTS AT CUSTOMER: Assign account number if Business maintains with
Customer (As a Vendor).
UNITS GROUP: Ex: PAL Assign unit of measure that customer rExularly
purchases.
EXCHANGE RATE TYPE: Assign exchange rate type for customer. System uses
exchange rate type, if Invoice is going to be settled in currency other than document
currency.
CUSTOMR PROCEDURE FOR PRODUCT PROPOSAL (PP CUST PROC): Ex :
A) PRODUCT PROPOSAL
B) CROSS SELLING
together with document procedure for product proposal. System determines product
proposal or cross billing.
Cross selling is the concept by which business can offer combination material for
ordered material. Ex: for Computer, Computer stand can be suggested.
PRICE GROUP: Ex: 01 Bulk Buyer
Grouping of the Customer to carryout Pricing.
Ex: Condition Type (KO20) used in pricing procedure.
PATH: IMG
Basic Functions
Pricing
Maintain Price Relevant Master Data Fields
Define pricing groups for customers
Go to new entries and define price groups, Save it and Exit.
CUSTOMER PRICING PROCEDURE: Ex: 1 standard Assign pricing procedure to
customer, the value of this field used by the system as a one of the factor to
determine pricing procedure.
FAQ: How System determines pricing procedure?
ANS: System determines pricing procedure by taking 3 factors into consideration
(a) Sales Area
(b) Document Pricing Procedure (VOV8 of OR)
(c) Customer Pricing Procedure (= default pricing procedure)

SAP-SD 21
PATH: IMG
Basic Functions
Pricing
Pricing Control
Define and Assign Pricing Procedure
Define Customer Pricing Procedures.
Go to new entries and Define customer Pricing Procedure, save it and Exit.
PRICE LIST: Ex: 01 Wholesale
Price List can be defined for group of customers to carry out pricing.
PATH: IMG
Business Function
Pricing
Maintain Price
Relevant Master Data Fields
Define Price List catExories for Customers
Go to new entries and define Price List catExories by customers, save and Exit.
CUSTOMER STATISTICAL GROUP: Ex: 1 Relevant for statistics.
Grouping of the Customer to Generate statistical reports from LIS – Logistics
Information System (Open Data Warehouse).
PATH:
IMG
Logistics Info System
Logistics Warehouse
Updating
Updating Control
Setting : Sales & Distribution
Statistics Groups
Maintain Statistics Groups for Customers.
Go to new entries and define Statistics Groups, save it and Exit.

SAP-SD 22
SHIPPING TAB: Delivery Priority Ex: 01 High
Assign Delivery Priority to Customer ship to party for a line item in the Sales Order.
The Value of this field used by the system in back order and re-scheduling process.
We maintain delivery priorities in Customer Material Info records as well as
Customer Ship to Party. If you maintain in both areas, then system gives the priority
for customer material info records.
PATH:
IMG
Business Partners
Customers
Shipping
Define Delivery Priorities
Go to new entries and define delivery priorities, save it and Exit.
SHIPPING CONDITIONS: Ex : 10 Immediately.
Assign shipping conditions to customers ship to party. The value of this field used by
the system to determine shipping point for a line item in the Sales Order as a one of
the factor. We maintain shipping conditions in Customer Master ship to party as well
as Sales Documents header level. If you maintain in both areas, then system gives
the priority for Sales document header.
FAQ: How system determines shipping point for a line item in the Sales Order?
ANS: System determines shipping point for a line item in the Sales Order for taking
3 factors into consideration.
A) Shipping Conditions for Customer Master ship to party or Sales Document
header.
B) Sales Document Header loading group from material master
C) Delivery Point.
PATH: IMG
Logistics Execution
Shipping
Basic Shipping Functions
Shipping Point and Goods Receiving Point Determination
Define Shipping Conditions
Go to new entries, define shipping conditions, save it and Exit.
DELIVERY PLANT: Assign Plant that we defined in IMG.
FAQ: How System Determines Plant for a line item in the Sales Order?
ANS: System follows search criteria for determine plant for a line item in the Sales
Order.

SAP-SD 23
a) System first checks customer material info records. If Plant has been
maintained, then it will take from Customer Material Info records or else it will
go to “b”
b) Customer Master Ship to Party or else it will go to “c”
c) Materials Master or else Plant should be determined manually during Sales
Order Processing.
CHECK RELEVANT FOR POD: Proof of Delivery is the concept by which business
can map “ACKNOWLEDGEMENT” business.
In normal business process business delivery goods to the customer and customer in
term sends acknowledgement for the goods that he received, then only business
raises Invoice. To map this business scenario, proof of delivery can be used in SAP,
that prevents the user from raising Invoice unless and until user confirm
acknowledgment from the customer.
POD TIME FRAME: Specify the time in days up to which system has to wait to
receive POD confirmation, after that period system automatically allows the user to
raise Invoice by assuming that goods reached to the customer place, then user
releases the document by using transaction code VLPODQ (Automatic POD
confirmation).
CHECK ORDER COMBINATION: It is a pre-requisite to combine number of Sales
Orders that belongs to same ship to party for collective processing.
CHECK COMPLETE DELIVERY REQUIRED BY LAW: This control determines
whether Sales Order should be splitted into different deliveries.
PARTIAL DELIVERY PER ITEM:
Blank Partial Delivery Allowed
A Create a delivery with Qty > 0
B Create only one delivery (also with Qty=0)
C Only complete delivery allowed
D No limit to subsequent deliveries.
The value of the field determines whether line item can be splitted or not.
MAXIMUM PARTIAL DELIVERIES: 9
The value of this field restricts Max partial deliveries for line item in the Sales Order,
that means Sales Order line item can be splitted by X / 9.
CHECK UNLIMITED TOLERANCE: This indication allows un-limited tolerances for
Sales Order line item QTY.
UNDER DELIVERY TOLERANCE AND OVER DELIVERY TOLERANCE: Specify
the limit in % for Under Delivery Tolerance and Over Delivery Tolerance. Ex: 10%
and 10%
Note: If unlimited Tolerance check, then limit need not be specify.
TRANSPORTATION ZONE: The value of this field used by the System to determine
ROUTE for a line item in the Sales Order as a one of the factor.

SAP-SD 24
BILLING TAB:
Check subsequent Invoice processing: This control determines that manual
posted invoices should be printed out.
Check Rebates: Active this control as a pre-requisite, if the business want to map
rebates.
Check Price Determination: This indicator allows / is a pre-requisite to determine
price for customer hierarchy.
Invoicing Dates and Invoicing List Dates: Assign factory calendar to generate
invoices and invoice list.
Invoice List: Invoice list is the list of invoices, that particular customer payer should
pay. The list given to collection agent who us the responsible to collect money from
customer for which he will be paid factoring discount.
FAQ: If Customer Payer accepts invoices and invoice list how do you configure it?
ANS:
CALENDERS
PATH: To define Factory Calendar
IMG
Master Data
Business Partners
Customers
Billing Document
Define Billing Schedule.
(a) Define Public holidays: Click on change icon
Click on create icon
Select with fixed date and click on create icon
Choose day, month specify short and long description and click on create,
go
Back.
(b) Define Holiday Calendar: Click on change icon
Click on create icon
Specify public holiday calendar ID with
Description
Validity Periods, click on assign public holiday
And choose our public holiday from the list and click on assign public
holiday.
Save it and go back.
© Define Factory Calendar: Click on change icon
Click in create icon
Specify factory calendar ID with description
Specify validity periods and assign holiday Calendar ID and check working
Days.

SAP-SD 25
INCOTERMS: CIF (Costa, Insurance and freight) Assign Incoterms to change freight
Condition Type (KF00) used by the system in pricing procedure.
International Chamber of Commerce of terms of liability for freight in transit.
The terms and conditions defined by ICC that should be avoid by shipper and ship to
party.
Terms of Payment: Ex: 0001 – Payable Immediately Due net
0002 – With in 14 days 3% Cash Discount
With in 30 days 2% Cash Discount
With in 45 days due net.
Assign Payment terms for customer / payer according to which customer should pay
the money and Cash Discount will be granted. Condition type SKTO used in pricing
procedure.
PATH: IMG
Master Data
Business Partners
Customers
Billing Documents
Define terms of payment
Go to new entries and define payment terms.
Path is same for incoterms also.

SAP-SD 26
Credit Control Area
Assign Credit Control Area to Customer Payer.
Credit Control Area is responsible to grant and to monitor credit for the customer. It
is a responsible organization unit in FICO module.
Payment Guarantee Procedure 0001 – Letter of Credit
0002 – Payment Cards
Assign customer payment guarantee procedure to the customer payer. Together
with document guarantee procedure systems determines payment guarantee
procedure to the sales document line items.
If payment guarantee procedure assigned, then system activates “Receivable Risk
Management Component” by which business can assess the risk that is going to be
involved with customer transactions.
Account Assign Group:
01 – Domestic Revenues
02 – Foreign Revenues
03 – Affiliated Company Revenues
Grouping of the customers to update / to post Sales Revenues, Sales deductions,
Freight revenues and Tax revenues in respective General Ledger Accounts.
It is a pre-requisite for SD and FICO intExration along with Material Management
assignment group.
OUTPUT TAX: Assign Tax responsibility for customer payer.
Ex: 1 – Liable for Tax
0 – Tax Exempt
To determine Tax code, system uses of takes 2 factors in to the consideration.
a. Tax classification numbers from customer master and material master
b. Country Keys of customer and delivering plant.
To get the Tax classification number from customer master SAP follows
Search criteria.
1. System first takes Payer if sold to party and payer different. Or else
2. From Ship to Party. Or else
3. From Sold to Party.
PARTNER FUNCTIONS TAB: Check weather relevant partner functions determined
by system according to the partner functions or Account Group. That are:
S P - Sold to Party
S H – Ship to Party
B P – Bill to Party
PY – Payer
Save it and note down the customer number --------- that shown in the status bar.

SAP-SD 27
FAQ: If ship to party wants to receive shipment on particular day. Ex: Saturday.
How do you configure it?
ANS: By defining Factory Calendar.
PATH:
IMG
Master Data
Business Partners
Customers
Shipping
Define Customers Calendar
In the same path define goods receiving hours. Ex: 001 week days.
Assign these goods receiving hours in General Data Section unloading points tab
and goods receiving hours option.
FAQ: Can you create Customer Material info records from customer master?
Ans: Yes
PATH: XD02 or VD02 Sales Area Data Session
Environment
Then, Customer Material information
FAQ: Can you block customer from customer master?
ANS: Yes
PATH: DX02 or VD02 Sales Area section, Extras, Blocking Data, specify the
particular area.

SAP-SD 28
MATERIAL MASTER
FICO Settings: Define and Assign Fiscal Year variant to company code. Fiscal
Year is nothing but a Financial Year.
a. K4 – Calendar Year / Dependent. Ex: Jan –Dec
b. V3 – Year Dependent. (Apr – Mar)
Path:
IMG
Financial Accounting Global setting
Fiscal Year (a) Maintain Fiscal Year variant
Assign Company Code to a Fiscal Year variant.
Choose our company code and assign Fiscal Year variant. Save it and Exit.
Define and Assign Chart of Accounts to Company Code: Company Accounts is
nothing but a list of General Ledger Accounts.
Path:
IMG
Financial Accounts
General Ledger
Accounting
G/L Accounts
Master Records Preparations
Assign Company Code to Chart of Accounts.
Choose our company code from position button and assign chart of accounts as a
INT (International). Save it and Exit.
M M Settings
Assign Materials type at company code level (OMSY).
Choose our company code and assign Fiscal Year (Current Year) then specify
posting period accordingly to Fiscal Year variant. If it is K4 then every 3 months as a
period.
Check ABP (Allowed Back posting Periods). Save it and go back.
QTY / Value updating (OMS2): In SAP materials catExorized as a finished
products, semi – finished products, Raw Materials etc.,
Ex: FERT – Finished Products
HALB – Semi-finished Products
ROH – Raw Material
HAWA – Trading Goods
VERP – Packaging Material
LEIH – Returnable Packing Materials
NLAG – Non Stock Material
PIPE – Pipe Line Materials
Materials are valuated usually at company code level or plant level.

SAP-SD 29
Choose FERT from position button and click on QTY / Value updating control
button. Choose valuation area (Plant) material type (FERT) and check QTY
updating.
Save it and Exit.
Maintain material master is the involvement of MM, PP, QM, SD, WM, FICO
consultants. Material Masters are maintained with specific to SD division.
Material Master can be maintain in MM module as well as SD module depending
upon material type.
If it is finished Product, then Material Master can be maintained in both areas. If it is
HAWA, usually that is going to be maintained in SD.
MM01 – Create
MM02 – Change
MM03 – Display
PATH:
Logistics
Material Management
Material Master
Material
Create (General)
MM01 – Immediately OR
Logistics
Master Data
Products
Material
Other Material
MM01 – Create Material
Internal assignment depending upon the material type,
Industry Sector – Mechanical Engineering
The material that we are going to create belongs to certain industry sectors.
Ex: Chemical Industry, Pharmaceutical Industry etc.,
Material Type: Ex: Finished Product
The material that we are going to created belongs to certain material type.
Ex: Finished Product, Raw-Material, Semi-finished Product etc.,
Depending upon the material type system can understand whether material can be
procured internally or externally. If it is FERT, then both procurements are possible.
If it is a HAWA only external procurement possible so that depending upon the
material type system proposes relevant views.
Click on select views and select

SAP-SD 30
Basic Data
Sales : Sales Organization Data 1 and 2
Sales : General / Plant Data
General Plant Data / Storage 1
General Plant Data / Storage 2
Accounting Data 1
Click on Organizational levels. Specify our Plant, Storage Location, Sales
Organization, Distribution Channel
Click on continue
Maintain Data in Basic Data 1
Specify description :
Specify Base Unit of measure: (EA)
Specify Material Group : 00104
Grouping of the Materials to generate statistical reports and to carryout pricing.
Assign Division: 4W (SD Division)
General item catExory Group: By default it is NORM depending upon the material
type system proposes general item catExory group. The values of this field used by
system as a one of the factor to be determine sales order line item as a Standard
item, Free of Charge item, Service item, Value item and Text item.
Ex: 0001 - Make – to – Order
0002 - Configuration
BANC – Individual Purchase Order
BANS – Third Party Item
DIEN – Service without delivery
ERLA – Structure / Material .Above
LUMF – Structure / Material . Below
BOM – Items Bill of Materials
LEAS – Lease Item
VERP – Packing Material
LEIH – Returnable Packing Material
LEIS – Service or Delivery Item
NLAG – Non-stop Material
VCIT – Value contact item.
Specify Gross and Net Weight 2 Kg and 1 Kg subsequently.
Sales : Sales Organization Data1: Sales Unit specify Sales Unit. Ex: Box
Conversion factor 1 Box = 10 each items.
Delivering Plant: Assign Delivering Plant from where the material to be picked.
Cash Discount: It is a pre-requisite to grant Cash Discount for the material.
Condition type SKTO – SKTV used in pricing procedure.
Tax Classification Number: Assign Tax responsibility of the material. The value of
this field used by system as a one of the factor to determine Tax Code.
QTY Stipulation: Minimum Order Qty Ex:10. The order should be placed with this
minimum Qty, otherwise system issued warning message.

SAP-SD 31
Minimum Delivery Qty: Ex: 20 each. The order should be delivered for this
stipulated Qty, otherwise system issues warning message.
Delivery Unit: 2 Boxes.
Conditions: Maintain Sales Price (PROO). Ex: 1 Box = 1000/-
Sales : Sales Organization 2: Ex: 1 – Relevant for statistics.
Grouping of the materials to update LIS with the transactions of the material.
Volume Rebate Group: Ex: 01 – Max Rebate
The value of this field used by system for rebate settlement.
Material Pricing Group: Ex: 01 – Standard Parts.
Grouping of this materials to carryout pricing. Condition type K020 used by the
system in pricing procedure.
Account Assignment Group: Ex: 03 – Finished Goods
Grouping of the materials to post Sales Revenues, Sales Deductions, Freight
Revenues and Tax Revenues in respective GL A/cs.
It is a pre-requisite for FICO and SD intExration along with “ACCOUNT GROUP OF
CUSTOMERS”.
General Item CatExory Group and Item CatExory Group: NORM, the value of this
field used by the system as a one of the factor to determine item catExory for a line
item in the Sales Order,
FAQ: How system determines Item CatExory for a line item in the Sales Order?
ANS: System determines item catExory for a line item in the Sales Order by taking 4
factors into consideration.
a) Sales document type (that end users enter). Ex: TA/OR +
b) Item CatExory Group (from its Material Master). Ex: NORM +
c) Usage of the Material (of the Material). Ex: NIL +
d) Higher level item catExory (of the line item) Ex: NIL
= default item catExory (of line item). Ex: TAN Standard item.
Sales : General / Plant:
Availability check. Ex: 02 – Individual requirements.
It is a checking group of availability check. The value of this field defines whether
and how system has to carry out TOR and availability function for this material if it is
placed in the Sales Order and Delivery document. If it is to be carried out, then what
kind of requirement it has to generate whether individual requirements or collective
requirements.
If it is individual requirements, then system creates demand with MRP for each Sales
Order.

SAP-SD 32
With individual requirements we can have a clear view of the requirements for this
material in CO09.
If it is summarized requirements, then system create demands with MRP for this
material at a time. Ex: Weekly once i.e. Monday, when the business raises number
of Sales Orders this kind of requirement to be advisable.
It also defines how long system has to wait i.e. as long as MPR elements (Purchase
Requisitions, Purchase Orders etc) existed or up to RLT time (Replenishment lead
time).
RLT is the time that required by business to procure materials internally or externally.
Together with “Checking Rule” it controls availability check.
Check Batch Management: This indicator is a pre-requisite if the material is to be
processed batch wise.
Transportation Group: Ex: 0014 – On Palettes
Grouping of the materials that required similar requirements for transaction. The
value of this field used by the system as a one of the factor to determine “ROUTE”.
Loading Group: Ex: 001 – Crane
Grouping of the materials that required similar requirements for loading. The value of
this field used by the system as a one of the factor to determine “Shipping Point”.
Sales Text: Plant Data / Storage 1 and Storage 2
Maintain data in this 2 views, if the material is to be managed in warehouse.
Extend the material into these 2 views to initiate the stock in storage location or plant.
ACCOUNT1: S – Standard Price
V – Moving average Price
Depending upon the material type system proposes standard price or moving
average price. The value of this field used by system to valuate the stock.
If it is standard price, then system valuates the stock with out taking inventory
movements into consideration.
If it is moving average price system valuates the stock by taking inventory
movements into consideration.
It represents cost price. Condition type VPRS used by system in pricing procedure to
calculate profit margin.
Maintain standard price. Ex: 1000

SAP-SD 33
D O C U M E N T S
Document is nothing but a data container. Document can be used as a proof of
transaction and they can be used to capture transactional details.
To simplify business/ processes documents has been catExorized into 3 sections
with respect to Sales and Distribution.
a. SALES DOCUMENTS
b. DELIVERY DOCUMENTS
c. BILLING DOCUMENTS
SALES DOCUMENTS:
Sales related Business data is going to captured into sales documents.
Sales document types: To map different different processes/transaction, sales
documents has been catExorized into 4 sections.
1.PRE SALES ACTIVITIES: Ex: Inquiry (AF/IN)
Quotation (AG/QT)
2.SALES ORDER: Ex: Standard Order (TA/OR)
Cash Sales (BV/CS)
Rush Order (SO/RO)
The Cash Sales and Rush Order are called as a special Sales Orders.
3.Customer Outline Agreement:
There are two types. They are
1.Contracts
2.Schedule Agreement.
The difference between contracts and scheduling agreement is
Contracts: These doesn’t have Schedule Agreement.
Schedule Agreement: Schedule Agreements do have schedule times.
a. CONTRACTS (K): Qty contract (KM/NMS)
Value Contracts (WK1, WK2)
Service Contracts (WVSC)
Rental Contract (MV/QP)
Master Contract (GK)
c. SCHEDULING AGREEMENT: Scheduling Agreement with delivering
Schedule called as BL and
Schedule Agreement with delivery order called as LZM
4.CUSTOMER COMPLAINTS:
Ex: Credit Memo requests (G2)
Debit Memo requests (L2)

SAP-SD 34
Returns (RE)
Subsequent Free of charge Deliveries (SDF)
Free of Charge Delivery (CD) Samples
Invoice correction request (RK)
In addition to these to MAP consignment business process
a. Consignment fill up (KB/CF)
b. Consignment Issue (KE/CI)
c. Consignment Returns (KR/CR)
d. Consignment Pick up (KA/CP)
SALES DOCUMENT ARCHITECTURE
HEADER LEVEL CATEXORIES
VBAK
ITEM LEVEL CATEXORIES
VBAP
SCHEDULE LINE CATEXORIES
VBEP
IN/AF QT/AG OR/TA BV/CS SO/RO
Del Imm LF LF LF Imm LF Imm
Del Del Del
Bill F2 F2 F2 F2
To define different types of Sales documents, SAP has given one standard format.
That standard format has an architecture i.e every Sales Document is made up with
3 types
a. Header Level CatExory( VBAK):
At a header level CatExory Data like.. Master Data, Organizational Data etc. is going
to captured. The Data that is going to be captured at header level applies to whole
document. Header Level CatExory is controlled by document type.
Ex: AF, KG, TA, BV, SO etc.
b. Item Level CatExory (VBAP):
Every Sales Documents should have Line Items. Those Line Items contains Data
Ex: Plant, Storage Location, Shipping Point, Route, Net Price etc and the Data
applies to the particular Line Item only. Sales Order Line Items controlled Item
CatExory.
Ex: TAN (Standard Item),
TANN ( Free of Charge)
TAD (Service Item)
TATX (Text Item)
TAW (Value Item)
TAB (Individual Purchase Order)
TAS (Third party Item)

SAP-SD 35
Depending upon the Item CatExory Sales Order Line Item can be controlled with
respective pricing, Inventory management, TOR. (Transfer of Requirement).
c. Schedule Line CatExory (VBEP):
Require Delivery Date and Qty to be confirmed is called Schedule lines.
Every Line Item in the Sales Order may have one or more than one Schedule lines.
Schedule Lines of Line Item causes to create delivery document for Line Item, that
means it acts as basis to create delivery document. Depending upon the transaction
type document may have activated or de-activated schedule lines. Schedule Lines
are controlled by Schedule Lines CatExory.
Ex: CP - deterministic the MRP.
CN - No MRP
V B A K
Sold to Party :
Ship to Party : H L C
P O No:
Net Ord
Val 735
LIST P O Dt:
Item Material Quantity Item Material Order Price
No No QTY
10 Rice 100 Kg 10 Rice 100 Kg 100
20 Wheat 200 Kg 20 Wheat 200 Kg 200
30 Tooth Paste 100 Gm 30 Tooth Paste 100 Gm 100
40 Soaps 10 35 Tooth Paste 25 Gm 25
50 Good Day 1 40 Soaps 10 100I L C
60 Service (for Mixer) X 50 Good Day 1 10
70 Papad 1 Pack 60 Service X 100
70 Papad 1 Pack 100
TOTAL 735
Req Del Order Confirmed
Date QTY Qty
Today 100 Kg 100 Kg
Today 200 Kg 100 Kg
Tomorrow 100 Kg S L C
Today 1 Pack 1/2 Pack
Tomorrow 1/2 Pack
PR PO GR INV VP
Pruchase
Requisition Purchase Order
Goods
Received Invoice
Vendor
Pmt

SAP-SD 36
INVOICE (F2)
Item Material Picked Price
PICKING LIST (LF) No Qty
Item Material Order Picked 10Rice 100 Kg 100Standard
No Qty Qty 20Wheat 100 Kg 100Standard
10 Rice 100 Kg 100 Kg 30Tooth Paste 100 Gm 100Standard
20 Wheat 200 Kg 100 Kg 35Tooth Paste 25 Gm 25Standard + Free of Charge
30 Tooth Paste 100 Gm 100 Gm 40Soaps 10 100Standard
35 Tooth Paste 25 Gm 25 Gm 50Good Day 1 10Standard
40 Soaps 10 10 60Service X 100Service
50 Good Day 1 1 70Papad 1/2 Pkt 50Third Party Item
60 Service X X Total 585
70 Papad 1 Pack 1/2 Pkt Less : Discount 25
Total Price 560
Third Party Sales Direct Delivery to Customer by Vendor
Individual Purchase Order Stock Delivered by vendor to business and stock
dispatched from business to customer.
ATP Auto Check
ATP=WH+PR-PI
WH Warehouse Stock
PR Plan Receipts
PI Plan Issues

SAP-SD 37
Define Sales Document Header (VOV8)
PATH:
IMG
Sales
Sales Documents
Sales Documents Header
Define Sales Document Types
Go to New Entries Specify Sale Document Type (Z01 – Standard Order)
SD Doc CatExory: Ex: C – Order
It is a catExorization of Document type as a Order or Inquiry, Quotation etc.,
The value of this field used by the system to determine status of preceding
Documents (IN,QT) and proceeding documents (LF/F2).
The Document type name can be used to define schedule line catExories as a
naming convection.
INDICATOR: Technically it is another classification of document type, that is going to
be stored in a table (TVAK). Ex: RK
Sales Document Block: Values are
Blank – No Block
A – Only Automatic Creation Allowed. Ex: for rebate processes
X – The Sales Document Type is Blocked
The value of this field used by the system to block the document at client level.
Numbers Systems:
Number range internal assignment
Number range external assignment
In IMG we define number ranges one is with in internal another one is with external
and assign to sales document header. So that system or user assigns number
internally or externally to sales document.
Item number increment and sub-item number increment: Assign item numbers
for main item and for sub-items in the Sales Order. So that system generates line
item numbers and increments accordingly to each and every line item.
FAQ: Is it possible to assign line item numbers manually during Sales Order
Processing?
ANS: Yes

SAP-SD 38
General Control:
Reference Mandatory: The value of this field makes preceding document as a
mandatory to this document type.
Ex: For QT – IN is mandatory
For TA – QT is mandatory.
Check Division: Blank – No dialog
1 - Dialog
2 – Error
The value of this field determines system response when item division defines with
header division.
Ex: Warning or Error
ORDER PROBABILITY: 100%
Together with customer Probability VD01, System calculates the chances of
completion of line Item with the Sales Order
Ex : If it is
Inquiry AF 30%
Quotation AG 70%
TA 100%
CREDIT CHECK
Blank No Credit limit check
A Run simple credit limit check and warning message.
B Run simple credit limit check and error message.
C Run simple credit limit check and delivery block.
D Credit management Automatic credit control.
Assign whether and how system has to carry out Credit Check for the Sale
Document:
Ex: No Check or simple Credit Limit Check. And Automatic Credit Check
In business granting Materials on credit is quite common. While granting Credit to
the customer the business should be very cautious otherwise Business may be
Bankrupted, so as to avoid this kind of situation SAP delivered a Feature called
Credit Management/ Risk Management by using this tool whereas Credit checks can
be carried out while processing the document. Once the Credit Limit has been
exceeded the system response according to the value that will specify in this field i.e.
A to C
(for simple credit check) OR
D- Credit Management: Automatic change according to OVA8 to define Automatic
credit check)

SAP-SD 39
SIMPLE CREDIT CHECK:
In simple credit check, system gets credit exposure by comparing customer credit
limit with total value of the document + open Items. If credit limit has been
exceeded then system responds according A to C.
AUTOMATIC CREDIT CHECK
In automatic credit check, system gets credit exposure from total off open orders,
open deliveries, open receivables and open items. If the credit limit has been
exceeded then system response according to the value will specify and OVA8, the
system has to carry out Automatic Credit Check then the value D should be
assigned.
In automatic credit check there are various checks available that are:
• Dynamic credit check
• Static Credit check
• Total Document value
• Next review date
• Critical fields
• Highest dunning level and
• User Level
CHECK CREDIT LIMIT
Blank No Credit limit check
A Run simple credit limit check and warning message.
B Run simple credit limit check and error message.
C Run simple credit limit check and delivery block.
D Credit management Automatic credit control.
CREDIT GROUP:
Credit group Credit for Sales Order
01 Group for Sales Order
02 Credit Group for Delivery
03 Credit Group for Goods Issue
As Credit related decisions can be taken only at three levels in Business Processes
i.e.
• Sales Order level.
• Delivery level
• PGI Level (Post Goods Issue)
So that Documents configure for credit management at this three levels.
OUT PUT APPLICATION
OUT PUT APPLICATION [V1 Sales]
Specify the Application Area where the output determination procedure should be
applied as SD Module there are different documents can be generated with different
output types and send to relevant partner function through whereas transmission
mediums

SAP-SD 40
MATERIAL ENTRY TYPE:
The value of this field determines how the material can be entered in Sales Order
i.e.
by specifying Material No. or by using product catalogue
ITEM DIVISION:
Check Item Division: This control allows the system to copy its division from
Material Master and proposed into Sales Document. If it is de-activated then system
doesn’t copy the Material Division from its material Master and automatically applies
Header division to all the Line Items in the Sales Order.
READ INFO RECORD
CHECK READ INFO RECORD
This allows the system to Read Customer Material Info Record if it is existed.
Check Purchase Order Number: The value of this field checks whether Purchase
Order number is existed or not for this sale document type.
Check Enter Purchase Order Number: If it is activated, then system takes current
date as a P O date.
Commitment Date: The value of this field specifies commitment date for the sales
order line items.
Transaction Flow:
Screen Sequence Group: Ex: AU – Sales Order. The value of this field specifies
with screens with sequence they have to be display during Sales Order processing.
In-completing Procedure: Ex: 11. Is a concept by which SAP reminds the user
about the fields in which values has not been maintained while saving the document.
So that the user will have a choice to maintain data in those fields before saving the
document, otherwise the user will have to face the problem while processing
subsequent documents as the values of those fields will have a greater influence on
subsequent documents. Ex: P O Number, Pricing, Payment Terms and Incoterms.
Transaction Group: Ex: 0 – Sales Order. The value of this field updates indexes of
the sales document type internally. If the value has not been maintain, then system
can not insert the records.
Document Processing Procedure: Assign Pricing Procedure to sales document.
The value of this field used by the system as a one of the factor to determine pricing
procedure.
Status Profile: In IMG to be define status profile to define system statuses as well as
user statuses for this sales document type.
Alternative Sales Document Type 1 : Ex: Assign RO/SO
Alternative Sales Document Type 2 : Ex: Assign CS/BV
Alternative Sales Document types can be assigned to this sales document type, so
that the user will have a choice to switchover into those documents while processing
this document type.

SAP-SD 41
Pre-requisites:
1. Number ranges should be same.
2. Document catExories A,B,C,D,I,K and L only can be reference as a
alternative sales document types with each other. Indicator should not be set.
3. Sales Documents should be blocked.
4. Un-check item division.
5. Commitment date should be same.
6. Billing plant type should be same.
7. Payment guarantee procedure should be same.
8. Payment Card plan type should be same.
9. Checking group should be same.
Variant: In IMG we define variants with held of ABAPers. Ex: Screen Variants by
which default values, default Tabs can be proposed for a sales document type.
Display Range: UALL – All Items
UHAU – Main Item
UMAR – Selected Item
The value of this field determines which line status can be displayed during Sales
Order processing.
Function Code for Overview Screen: Ex: UER1 – Press Enter to go to General
Over View. The value of this field determines which Tab system has to propose by
default.
Once the user press enter after specifying document type and sales area. It
facilitates order entry.
Quotation Messages: The value of this field reminds the user about the open
quotations if they are existed at header level or item level in a popup box, then the
user will have a choice to complete those open quotations first or the user can ignore
the open quotations and he can proceed.
Outline Agreement Messages: The functionality is the same like above field, but
system shows message about outline agreements. Additional reference to all
contracts for partner is authorized to release. In business Sold to Party or Ship to
Party may be authorize to release the contracts. If the partner is existed in other
contracts and if they are open, then system takes those documents also into
consideration and shows the message.
Message Master Contract: The value of this field reminds the user about the open
master contracts for contract documents. It is relevant for master contracts.
Product Attribute Messages: The value of this field determines system responses if
product attributes are going to be change during Sales Order processing whether
warning or Error messages.

SAP-SD 42
Check Incomplete Messages: This indicator determines whether this Sales
Document type can be saved without having values in certain fields that are assign to
incompletion procedure. This field is de-activated then the document can be saved
without having data in those fields. If it is activated then document can not be saved.
Scheduling Agreement: This section deals with only scheduling agreement
document type.
Correction Delivery Type: Ex: LFKO. Assign delivery document type LFKO for
scheduling agreement types to correct the deliveries in scheduling agreement.
System automatically proposes this delivery document type when the user initiates
correction deliveries with reference to this scheduling document types.
USE: Ex: E – Spare Parts
M – Sample
S – Sterilized Parts.
In scheduling agreements one material can be given with different usages. The
usage can be specifies at header level that applies to all line items in the scheduling
agreements.
MRP for Delivery Scheduling type: The value of this field determines whether
system has to carry out MRP on scheduling agreement line items.
Delivery Block: Delivery Block can be specified at scheduling agreement document
header level. So that system proposes delivery block for all items in the scheduling
agreement as some one in the business has to check scheduling agreement before
initiating outbound deliveries.

SAP-SD 43
Shipping Section
This section deals with shipping activities.
Delivery Type: Ex: LF. Assign Delivery Document Type “LF” for this Sales
Document types. So that system automatically proposes this delivery document type
LF when outbound delivery is going to be initiated with reference to this Sales
Document Type.
Delivery Block: Assign delivery block for sales document header so that system
automatically proposes delivery block for all line items in the sales document as
some one in the business has to check sales document before initiating outbound
delivery.
It is relevant for Free of Charge deliveries.
Shipping Conditions: Assign shipping conditions to sales document header. The
system automatically proposes for all the line items in the Sales Order.
The value of this field used by the system as a one of the pre-requisite to determine
shipping point.
This value will be given priority while determining shipping point. It is relevant for BV
and RO.
Shipping Cost Info Profile: Ex: Standard. In IMG we define shipping cost info
profile in which we can specify transactions planning point, shipping type, shipment
cost calculation procedure etc., That is used by system for shipment and
transportation.
Immediate Delivery: Ex: Blank – Create Delivery Separately.
A – Create Delivery Immediately.
X – Create Delivery Immediately if Qty confirmed today.
The value of this field causes to create immediate delivery document for sales
document.

SAP-SD 44
BILLING
This section deals with billing activities for this document type.
Delivery Related Billing Type: Ex: – F2
Order Related Billing Type : Ex: - F2
Assign document type for Delivery Related Billing Type and Order Related items in
the Sales Order. System automatically proposes billing document type F2 for this
sales document type when the billing process is going to be initiated.
Inter Company Billing Type: Ex: IV. Assign billing document type IV the system
automatically proposes for inter company billing transactions.
Billing Block: Assign billing block at sales document header level the system
automatically proposes for all the line items in the sales document before initiating
invoice process has some in the business has to check sales document before
initiating invoice process with reference to this sales document type. It is relevant for
Credit Memo request and Debit Memo request sales document types.
Condition Type line Items: Ex: 02. Assign condition type that is used by system as
a base to carryout pricing based on the Sales Order line item cost.
It has a intExration with FICO.
Billing Plan Type: Ex: 01 – Milestone Billing
02 – Periodic Billing
Assign billing plan type for Sales Document header level that applies to all line items
in the Sales Order. Ex: Periodic Billing. The entire value to be billed in full
amount on each billing plan date. Ex: It can be user rental contracts or maintenance
contracts.
Milestone Billing: The total value to be billed is distributed between the individual
planning dates. It can be a percentage amount or absolute amount. Ex: It can be
used Projects.
Payment Guarantee Procedure: Together with Customer Payment guarantee
procedure system determines payment guarantee procedure for a line item in the
payment guarantee procedure in the Sales Order.
System activates receivable risk management component in FI Module.
Payment Card Plan Type: Ex: 03 – Payment Card. Assign Payment Card plan for
Sales document line item in the Sales Order.
Checking Group: Ex: 01 – Standard. Assign checking group to carry out checks on
payment cards.
Requested Delivery Date / Pricing Date / Purchase Order Date: This section
deals with default dates in sales documents for deliveries, Pricing etc.,

SAP-SD 45
Lead Time in Days: Ex: 7. System adds current date to the 7 days and proposes
required delivery date in the sales document.
Date Type: Ex: 1 – Day
‘2 – Week
‘3 – Month
Date format for schedule lines can be assigned.
Proposed Pricing date based on the requested delivery date. The value of this field
specifies which date system has to propose by default for pricing.
Proposed Valid from Date: The value of this fields specifies when the document
should come into force.
Check Propose Delivery Date: This indicator takes current date and proposes as a
delivery date. It is relevant for Cash Sales and Rush Sales.
Check Propose Purchase Order Date: This indicator proposes current date as a
Purchase Order date.
CONTRACT
This section deals with contract documents. Ex: SC – Service Contract.
Pricing Procedure Condition Header: Ex: PABROI. Assign pricing procedure for
contract sales document header level i.e. proposed by system automatically for
contract.
Pricing Procedure Condition Item (PABR02): Assign pricing procedure for contract
document item level that applied to line item.
Contract Profile: Ex: 0001 – One Year Contract. In IMG we define contract profiles
in which we define contract starting date, ending date, cancellation rules etc., that is
going to be used by this contract document type.
Billing Request (IRC – Debit Request Memo): Assigning Debit Memo Request to
compensate business in service contracts.
Grand Referencing Procedure: In IMG we define referencing procedure. Ex:
SDGK – Standard. That can be used by the system to assign lower level contracts
to master contracts. Through this referencing procedure system can understand
which fields can be copies which fields can be changes.
It is relevant for master contract document type GK.
Contract Data Allowed: The value of this field specifies whether contract data is
allowed for this document type or not.
If you assign X then the changes that we are going to carried out at header level is
not going to be effected at item level.

SAP-SD 46
If you assign Y that the changes that we are going to carried out at header level
applies to item level.
Follow Activity Type: Ex: 0003 – Sales Letter. We specifying follow up activity type
for contract sales document type that is to be created when sales activity is defines
as follow up action which is going to be proposed when the user initiate the creating
of follow up action from follow up action work list. Ex: 0003 – Assign to Rent of
Contract (MV).
Path to Create Follow Up Actions outline agreements.
Contract
Subsequent Functions
Follow up actions and maintain selection screen
Click on Execute and Choose all contracts with the follow up action.
Create Sales Activity and go to edit follow up actions then the dialog box will display
in which system proposes sales activity 0003 save it then system automatically
created follow up activity type for selected contracts.
Subsequent Order Type: Ex: AG. Assign follow up order type automatically
created as a subsequent processing. Ex: A maintenance contract is a validity period
of 1 year for that contract follow up order type AG is assign which is to be created 2
weeks before the contract end date. Then go to outline agreements Contracts
Subsequent Functions Follow up Actions, then system automatically
proposes follow up order type “AG” that has to be assign to this document type.
Check Partner Authorization: In contracts some partners are authorized to enter to
release the contracts. The value of this field checks whether the partner is
authorized to release the contracts or not.
AA – Sold-to-Party authorized to release the contract.
AW – Ship-to-Party authorized to release the contract.
Check Update Lower Level Contracts: This indicator causes to update lower level
contracts that are assign to Master Contracts.
Availability Check: Business transaction type OR, SO has to confirm the quantities
system has to carry out availability check. In SAP availability check can be
configured by following 3 methods.
a. Availability Check using “ATP” (Availability to Promise) Logic / Planning.
b. Availability Check against Product Allocation.
c. Rule based availability check.
In Rule based availability check system carries out “GATP” (Global Availability to
Promise) in APO system (Advanced Planner and Optimizer).

SAP-SD 47
CLIENT LANDSCAPE
S C M
S E M A P O
R / 3
C R M B I W
S R M
R/3 transfer the requirements of the Sales Order or the delivery through APO system
thru CIF (Central Interface) and APO carries out GATP and returns the results of the
GATP to R/3.
If system has to carried out GATP in APO system then in R/3 sales document
header level at availability check session in business transaction field document type
should be assigned.
It is not relevant for CS and RO.
Define number ranges for Sales Documents:
Path:
IMG
Sales
Sales Documents
Sales Document Header
Define Number Ranges for Sales Documents (VN01)
Click on change intervals icon.
Click on Insert intervals icon and define 2 number ranges 1 is with external option
and another one is with out external option.
Go to define sales document types (VOV8) choose sales document type and assign
those 2 number keys in number system section.
Define Purchase Order types: Here purchase order types
DFUE – Data Transfer
MUEN – Orally
SCHR – Written
TELE – By Telephone.
Define Order Reasons (OVAU): Go to new entries and define Order Reasons.

SAP-SD 48

SAP-SD 49
Define Usage Indicators: Here scheduling Agreements line item usages defined.
Ex: Spare Parts, Sample, Serialized Parts.
Assign Sales Area to Sales Document Types: There are 3 Sales Areas in the
Business. Ex: 0001, 01 and 01. If Sales Document Type OR is authorized under
this particular Sales Area then configuration setting:
1. Grouping together Sales Organization
Sales Organization Reference Sales Organization
‘0001 ‘0001
2. Grouping together Distribution Channel
Sales Organization Distribution Channel Distribution Channel
‘0001 ’01 ‘01
3. Grouping together Divisions
Sales Organization Division Division
‘0001 ’01 ‘01
4. Assign Allowed Order Types to Sales Areas.
Ref Sales Orgn Distn Channel Division Sales Doc Type
‘0001 ’01 ’01 OR
SALES AREA 2: Ex: 0002, 01, 01. If Sales Document type OR to be assigned to
this Sales Area.
1.Grouping together Sales Organization
Sales Organization Reference Sales Organization
‘0002 ‘0001
2.Grouping together Distribution Channel
Sales Organization Distribution Channel Distribution Channel
‘0002 ’01 ‘01
3.Grouping together Divisions
‘0002 ’01 ‘01
SALES AREA 3: Ex: 0002, 01, 02.
1.Grouping together Divisions
‘0002 ’02 ‘01

SAP-SD 50
Assign Sales Area To Sales Document Types:
A. Combine Sales Organizations: Choose Sales Organization and assign
same Sales Organization as a Reference Sales Organization. Save it and go
back.
B. Combine Distribution Channel: Choose our Sales Organization and
Distribution Channel and assign same distribution channels as a Reference
Distribution Channels. Save it and go back.
C. Combine Divisions: Choose our Sales Organization and Division and assign
same Division as a Reference Division. Save it and go back.
D. Assign Sales Order Types Permitted for Sales Areas (OVAZ): Go to new
entries and specify reference sales area and assign document types that are
allowed to this reference sales area.
Path:
IMG
Sales
Sales Documents
Sales Document Header
Assign Sales Area To Sales Document Type

SAP-SD 51
DEFINE ITEM CATEXORY (V0V7)
Path:
IMG
Sales
Sales Documents
Sales Document Item
Define Item CatExories
Item catExory is an indicator. That defines the characteristics of a document item.
Ex: It Controls the type and scope of Pricing, Billing, Delivery. Inventory Posting and
TOR (Transfer of Requirements).
Choose Item catExory TAN and go to detailed icon.
Item CatExory: Specify Key with description.
Business Data Section:
Item Type: Blank – Standard Item
A – Value Item
B – Text Item
C – Packing Item
D – Material not Relevant.
It is a classification as a standard item, Value item or Text item. Depending up on
the item type system controls that item in the document. That means system treats
an item that refers a physical material differently then the item doesn’t refer the
physical material.
Completion Rule: It is for Quotation and Contract Items. The value of this field used
by the system to establishment completion rule for a line item in the sales document.
Completion rule defines status of the item as a “Completed or being processed”
together with a control that is “Update Document Flow” at copy control of Sales
Document to Sales Document at item level catExory level. This field establishes
completion rule.
Special Stock: In Business certain stock to be created as a special stock for special
business concerns. Ex: Make-to-Order, Configurable Materials, Consignment Stock
and Returnable Packaging.
Consignment Issue: Ex: W
Billing Relevance:
A – Delivery Related Billing document
B – Relevant for Order – Related Billing – Status according to Order Quantity.
The value of this field specifies whether the item catExory is relevant for billing or not.
If it is relevant then how the billing document should be updated.
Billing Plan Type: The value of this field specifies billing plan type for this item
catExory. Ex: For Project Related Items. 01 – Milestone Billing

SAP-SD 52
For Rental or Maintenance contract item. 02 – Periodic Billing
Billing Block: Assign billing block for sales document line item level as some of the
business has to check sales document line item before initiating billing document.
Ex: Debit Memo items and Credit Memo items.
Pricing: Ex: X – Pricing Standard. The value of this field specifies how the pricing is
to be carried out for this item catExory.
Statistical Value:
Ex: Blank. System will copy item to header totals.
X – No Cumulating Values can not be used for statistically.
Y – No Cumulating Values can be used for statistically.
The value of this field specifies whether line item price copies to header total or not.
Check Business Item: This indicator determines whether line item business data
defers with header business.
Business Data: Sales, Shipping, Billing Data is called Business Data.
Check Schedule Lines Allowed: This indicator allows the system to create
schedule lines for a line item in the Sales Order. It is relevant for contract items.
Item Relevant for Delivery: This indicator allows the system to create schedule
lines for text items.
Check Returns: This indicator specifies that the sales document line item is return
item. Ex: REN
Check Weight / Value Relevant: This indicator specifies that weight and value
should be calculated for a line item in the Sales Order. It is irrelevant for service
item.
Ex: TAD (Service Item)
Check Credit Active: This indicator allows the system to configure Credit Related
Management functions for this item catExory.
Check Determine Cost: This indicator allows the system to calculate cost of the
material for a line item in the Sales Order. It is pre-requisite for condition type VPRS
(Cost) in Pricing procedure.
General Control
Check automatic Batch determination. This indicator allows to determine Batch
automatically for a line item in the Sales Order. It is a pre-requisite for automatic
batch determination.
Rounding Permitted: This indicator allows to apply rounding profile for a line item in
the Sales Order.
Check Order Qty = 1: This indicator allows sales order line item unit (Order Qty) as
a one. It is relevant for WKN (Value Contract Item).

SAP-SD 53
Transaction Flow:
Incompletion Procedure: Ex: 20. In IMG we define incompletion procedure for
sales document item level by which system reminds the user about the fields in
which values has not been maintained while saving the document.
Partner Determination Procedure: Ex: N. In IMG we define partner determination
procedure by which system determines relevant partner functions at item catExory
level. Ex: Ship to Party.
Text Determination Procedure: Ex: 01. In IMG we define text determination
procedure for sales document item level by which system proposes text for a line
item in the Sales Order.
Item CatExory Statistics Group: Ex: 1. Assign update rule to update LIS at item
catExory level.
Screen Sequence Group: Ex: N. The value of this field specifies which screen in
which sequence that are to be displayed at item level during document processing.
Status Profile: In IMG we define status profile by which we can specify system
statuses and user statuses.
Check Create P O Automatically: In third party and individual purchase items
system has to create P O automatically. This indicator triggers automatic creation of
P O. It is relevant for ALE (Application Link Enabling).
Bill of Material / Configuration: This section deals with BOM and Configurable
Materials.
Ex: TAQ, TAE, TAP (BOM items).
TAC (Configurable Item).
BOM items are nothing but structured materials or recipes structured materials made
up with number of components as a header item as well as sub-items.
The value of this field specifies or determines configuration stratExy for the line item.
That means it can under stand whether correct dependences selected or not.
Material Variant Action: Ex: 2 – Replace Configurable Material (Only in Append).
The value of this field determines system response when system finds material
variant for selected characteristics.
ATP Material Variant: The value of this field determines whether system has to
carryout ATP check on material variants.
Structure Scope: Ex: D – Configuration Possible with BOM exposure. The value of
this field causes to expose BOM during Sales Order processing as a single level
BOM, Multi level BOM, Configuration BOM exposure.
Application: Ex: SD01 – Sales and Distribution. Specify the application area where
the BOM is to be exploded.
Check Variant Matching: This indicator determines variant configuration.

SAP-SD 54
Create Delivery Group: Blank – Do not form delivery groups.
X – Form Delivery Group with one delivery date
Y – Delivery Group with correlated schedule lines.
We create delivery group for the materials in BOM item if system unable to confirm
the Quantities for all the BOM items in the Sales Order by giving to shipping tab at a
header level in delivery group field.
Check Manual Alternative: This indicator allows the user to choose manual
alternatives for BOM items during Sales Order Processing.
Check Parameter Affectivities: By intExrating with “Engineering Change
Management” cross functionality. The BOM items properties can be changes by
passing certain parameters. Ex: Customer Number, Serial Number, Date.
Value Contracts: This section deals with value contract item catExories. Ex: WKN.
Value Contract Material: Specify value contract item that is going to be participated
in value contract then the system automatically proposes this value contract material
in to value contract document if the user doesn’t specify the value contract material in
value contract document.
Contract Release Control: The value of this field determines system response
when the target value of the contract exceeds actual value. I.e Warning Messenger
or Error Message or Blocking Document.
Service Management: This section deals with service items.
Repairing Procedure: In IMG we define repairing procedure in which we specify
stages and actions that are to be carried out for the service item. Control of resource
related billing and creation of Quotations. This section deals with resource related
items.
Ex: Service Man.
Billing Form: Ex: 01 – Fixed Rate
02 – Costs.
The value of this field specifies how the billing to be carried out for the resource
related items.
DIP (Dynamic Item Processor) Profile: Dynamic item is nothing but a service item.
In IMG we define DIP Profile for dynamic item and assigned at item catExory level.
Define Item CatExory Groups: Depending upon the material type system
catExorized material general item catExory group in the Material Master.
Ex: 0001 – Make –to – Order
0002 – Configuration
BANC – Individual Purchase Order.
BANS – Third Party Item
NORM – Standard.

SAP-SD 55
Define default values for material type depending upon the material type that the user
uses while creating material master system automatically proposes general item cat
Exory group in the material master. So that general item vcatExory groups should
be assigned to material types. Ex: FERT = NORM.
Define Item Category Usage: Item catExory usage controls system response during
document processing. If the system does not refer to a material but to a text item.
Ex: Batch Split, Text Item, Service Item with / without billing and Free.
While determining item catExories for a line item in the Sales Order system requires
the usage of the material. That means the line item has specific usage according to
that usage it has to respond.
Ex: CHSP – Batch Split
CSEL – Cross Selling
FREE – Free Goods
PACK – Shipping Unit
TEXT – Text Item
VCTR – Value Contract.
Assign Item Categories (VOV4): Every Sales Document line item is going to be
determine automatically by taking 4 factors in to consideration
Sales Item Higher Default
Document CatExory Usage Level Item
Type Group CatExory CatExory
AF + NORM + NIL + NIL = AFN
AG + NORM + NIL + NIL = AGN
TA + NORM + NIL + NIL = TAN
TA + NORM + FREE + TAN = TANN
Define Reasons for Rejection: In business customers may reject certain items or
business can also reject certain items so that the reasons for the rejection should be
specified in the document for statistical information purpose. Go to new entries and
define reasons for rejection.
Date:14.07.2006
Define Schedule Line CatExories (VOV6):
Path: IMG
Sales
Sales Document
Schedule Lines
Define Schedule Line CatExories
CP Deterministic MRP

SAP-SD 56
Business Data :
Delivery Block: Assign Delivery Block for Sales Document line items at schedule
line catExory level so that system automatically proposes delivery block while
initiating outbound delivery for a line item in the Sales Order.
Movement Type: Ex: 601 – Goods Issue : Delivery. In Inventory Management
Material movements are controlled / signified by movement types depending upon
the movement only system can understand what type of delivery is going take place
Movement Type 1 – Step: In inventory movement the stock updating should take
place at a time at receiving storage location and delivering location in Replenishment
Deliveries (STOs) or manually they should be updated. If automatically, system has
to update the stock in receiving and delivering plant level then that is called as a
Movement Type 1 Step.
Ex: NC – Inter Company Replenishment. Movement Type 643 and Movement Type
1 Step 645.
SALES
DOCUMENTS
TYPE
[ TA ]
+ DEFAULT
GENERAL ITEM DEFAULT MRP SCHEDULE
MATERIAL TYPE CATEXORY ITEM CATEXORY + TYPE = LINE
[ FERT ] GROUP = [TAN] [ PD / NIL ] CATEXORY
[ N O R M ] [ CP ]
+
USAGE
[ N I L ] SCHEDULE CATEXORY
+
HIGHER LEVEL ORD TYPE [NB]
GATEXORY
[ N I L ] TOR
AVT CHECK
PROD ALL

SAP-SD 57
TA
+
HAWA BANC = ND
+
NIL
+
NIL
TA
+
HAWA BANS = NB
+
NIL
+
NIL
Order Type: If the material is Third Party item then system automatically has to
create purchase requisition for that particular line item in the Sales Order. To create
Purchase Requisition automatically one standard purchase requisition document type
(NB) should be assigned at schedule line catExory level. That assignment triggers
automatic creation of Purchase Requisition.
Ex: For Schedule Line catExory Type CB – Individual Purchase Order
CS – LEx
Item CatExory: Ex: O – Standard. Specify the item catExory of purchase requisition
type by which system can understand whether it is individual purchase order or third
party.
Ex: 0 – Standard
5 – Third Party
Account Assignment CatExory: Assigning Account CatExory (E or 1) by which
account determination take place for third party item.
Check Item Relevant for Delivery: This indicator creates schedule line for a line
item in the Sales Order.
Purchase Requisition Delivery Schedule: It is relevant for individual purchase
order items as system has to create delivery schedule (Goods Issue Date, Loading
Date, Material Availability Date, Transportation Planning Date for Delivery Date).

SAP-SD 58
Transaction Flow:
Incompletion Procedure: 30 – Delivery Related Schedule Line. In IMG we define
incompletion procedure and assign to schedule line catExory level by which system
reminds the user about the fields in which values has not been maintain while saving
the document.
Check Requirement / Assembly: This control defines that system has to transfer
the requirements for this transaction as well as system starts to create assembly
order. It is a pre-requisite for TOR.
Check Availability: This indicator specifies that system has to carry out availability
check for this transaction.
Check Product Allocation: This indicator specifies that product allocation is active
for this transaction.
Assign Schedule Line CatExories: SAP automatically determines schedule lines
for a line item in the Sales Order by taking 2 factors into consideration.
Item CatExory + MRP Type = Default Schedule Line CatExory.
TAN + PD = CP
TAN + NIL = CP
TAN + ND = CN (Individual P O)
TAN + NB = CS (Third Party)
FAQ: What are the control parameters of Sales Document ?
ANS: Header Level CatExory, Item Level CatExory and Schedule Line CatExory.

SAP-SD 59
General Business Process
:- - - - - - - - - - - > MMBE - [Stock Overview]
:
VA11 VA21 VA01 : VL0IN VF01
AF -> AG -> TA : LF F2
:
:
:- - - - - - - - - - - > MBIC - [Stock Initialization]
Inquiry AF (VA11):
Path: Logistics
Sales
Inquiry
VA11 – Create
Specify Sold to Party, Validity Period and Quantity.
Item CatExory – AFN
Schedule Line CatExory – AT
VOV8 of AF or IN (Header Level CatExory of Inquiry)
SD Doc CatExory : A
Probability : 30%
Screen Sequence Group : AG
Transaction Group : 1
Doc Pricing Procedure : A
Function Code for Overview Screen : UER2
VOV8 of AFN (Item Level CatExory of Inquiry)
Completion Rule : A
Pricing : X
Check Business Item
Check Schedule lines allowed.
Item CatExory Assignment:
AF + NORM + NIL + NIL = AFN
VOV6 of AT (Schedule Line CatExory of Inquiry)
No Schedule Lines for Inquiry
Quotation AG (VA21):
Path: Logistics
Sales
Quotation
VA21 – Create

SAP-SD 60
Specify document type AG or QT and click on create with reference, specify Inquiry
Number, Click on selection list, click on copy icon process document.
Alternative Item: By using this concept business can offer alternative item for line
item in the Inquiry or Quotation. The user has to specify line item number in item
catExory AGN.
VOV8 of AG or QT (Header Level CatExory of Quotation)
SD Doc CatExory : B
Probability : 70%
Screen Sequence Group : AG
Transaction Group : 2
Doc Pricing Procedure : A
Function Code for Overview Screen : UER2
VOV8 of AGN (Item Level CatExory of Quotation)
Completion Rule : AB
Pricing : X
Check Business Item
Check Schedule lines allowed.
VOV6 of BN (Schedule Line CatExory of Quotation)
No Schedule Lines for Quotation.
Sales Order:
Path: Logistics
Sales
Order
VA01 – Create
Click on create with reference. Specify offer number (QT)
Click on Selection List.
Click on copy
Item CatExory TAN
Schedule Line CatExory CP
MMBE – Stock Overview.
Specify Material Number, Plant, Storage Location and click on execute icon.
Go to MBIC for initializing the Stock.
Specify movement type 561
561 – Receipt Per initial entry of stock balances into un-restricted use.
561E – Receipt Per initial entry of stock balances into un-restricted Sales Order.
561K – Receipt Per initial entry of stock balances into un-restricted consignment.
561M – Receipt Per initial entry of stock balances into un-restricted RTP.
561O – Receipt Per initial entry of stock balances into un-restricted with sub
contracting.

SAP-SD 61
561Q – Receipt Per initial entry of stock balances into un-restricted Project.
561V – Receipt Per initial entry of stock returnable pack at customer.
561W – Receipt Per initial entry of stock consignment at customer
Specify Plant and Storage Location and Click on enter.
Outbound Delivery (VL0IN)
Path: Logistics
Logistics Execution
Outbound Process
Goods Issue for Outbound Delivery
Outbound Delivery
Create
Single Document
VL0IN – with reference to Sales Order.
Specify Shipping Point, Selection Date (on or after confirmed Qtys Date in the S O).
Specify the Order Number
Specify the Picking Qty
Click on PGI
Invoice (VF01)
Path: Logistics
Billing Document
VF01 – Create
Generate Reports:
Path: Logistics
Sales Information System
Standard Analysis
MCTA – Customer
And maintain selection screen.

SAP-SD 62
P R I C I N G
Sales Order Configuration:
Revenue Account
Determination
T O R / A V T Check Text Determination
SALES DOCUMENT Procedure
Credit Management /
Risk Management Header TA Partner Determination
Item TAN Functions
TAX Schedule CP
Line Output Determination
Shipping Point
Determination Pricing
Customer Material
Pricing Procedure:
ACCESS SEQUENCE CONDITION TABLES
V/08 V/07 V/03
BASE PRICE LINK Data Combination Values
( - ) DISCOUNTS ----> WH+FM+PL1+SA1 = 1000
NET VALUE PER ITEM <--------------------------------> ----> WH+FM+PL1+SA2 = 990
( + ) FREIGHT CHARGES ----> WH+FM+PL2+SA1 = 1100
( + )TAXES ----> WH+RT+PL1+SA1 = 1050
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Condition Types (V/06) Condition Records (VK11)

SAP-SD 63
In the above condition types some are mandatory and some are optional,
Mandatory : Base Price and Taxes
Optional : Discounts and Freight Charges
Customer : WH – Whole Sales, RT – Retailer
Material : FM – Fast Moving. SM – Slow Moving
Plant : PL1 – Plant 1, PL2 – Plant 2
Sales Area: SA1 – Sales Area 1, SA2 – Sales Area 2
Pricing: Price is the calculation of costs. (for Internal purpose), calculation of
revenues (for External purpose).
To calculate price for particular item certain pricing elements are going to be
participated. Among those pricing elements some are mandatory (Base Price and
Taxes), some are optional (Discounts and Freight). To determine value for particular
pricing element business has to take certain “COMBINATIONS” into consideration
that are “LINKED” to pricing elements. To map this pricing procedure in our SAP
system we use a tool called “CONDITION TECHNIQUE” which is having certain
components that are
Procedure
+
Condition Type Access Sequence Condition Table Condition Records
Condition technique used by system.
Condition Technique: By using condition technique SAP determine Price, Route,
Tax, Partner etc.,
Process Flow:
1. Define Pricing Procedure (V/08)
2. Define Pricing Procedure Determination (OVKK)
3. Maintain Condition (VK11)
4. Go to VA01
Define Pricing Procedure (V/08):
PATH: IMG
Basic Functions
Pricing
Pricing Procedure
Define and Assign Pricing Procedure
Maintain Pricing Procedure: Choose Standard Pricing Procedure “RVAA01”
Select it
Click on copy as icon and define our Pricing procedure by rename it.
Ex: YPRICE
Click on copy all
Press enter till we get a message “Number of Dependent Entries copies 72”
Save it.

SAP-SD 64
Select our Pricing Procedure
Click on control data under dialog session
Click on selection (F7)
Delete (Shift + F2)
Save it. “Don’t forget to save it”
Go to New Entries and Maintain Table.
Step: It indicates the position of condition type in pricing procedure.
Ex: Step – 10
Counter – 0
Condition Type – PR00
Counter: System uses the counter to count the steps and also it can be used to
count mini steps of same condition types. So that number of steps can be reduced in
the pricing procedure.
Step 10 Counter=0 Condition Type = PR00
Step 15 Counter=0 Description Gross Value From 10
Step 20 Counter=1 From 15
Condition Type: It represents Pricing element in pricing procedure as a Base Price,
Discount, Freight and Tax.
Ex: Condition Type Description
PR00 Price
K004 Material
K005 Customer / Material
K007 Customer / Discount
Description: System copies description of condition type from its description (V/06)
Ex: PR00 = Price
K004 = Material
K005 = Customer / Material
K007 = Customer / Discount and so on…..
From and TO: These two columns are for 2 purposes
a. As a base to the condition type: From column can be used as a base to the
condition type for calculating further value.
Step Counter Condition Description From To Manual Manda Statistical Print Sub Requi Alternative Alternative Accoun Accu
Type tory TTL rement formula formula ting rals
for Cond. for Cond. Key
Type Base Val
10 0PR00
15 0 Gross Value 10
20 1K004 15
25 2K005 15
30 3K007 15

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