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Enterprise Structure Definition Financial Accounting Define company Define credit control area Define, copy, delete, check

company code Define business area Define Functional Area Maintain consolidation business area Maintain financial management area Logistics - General Define valuation level Define, copy, delete, check plant Define Location Define, copy, delete, check division Sales and Distribution Define, copy, delete, check sales organization Define, copy, delete, check distribution channel Maintain sales office Maintain sales group Materials Management Maintain storage location Maintain purchasing organization Logistics Execution Define, copy, delete, check warehouse number Define, copy, delete, check shipping point Maintain loading point Maintain transportation planning point

Assignment Financial Accounting Assign company code to company Assign company code to credit control area Assign business area to consolidation business area Assign company code to financial management area Assign controlling area to financial management area Logistics - General Assign plant to company code Assign Business Area to Plant/Valuation Area and Division Data Comparison with Sales Plant/ValArea - Div - BusArea Sales and Distribution Assign sales organization to company code Assign distribution channel to sales organization Assign division to sales organization Set up sales area Assign sales office to sales area Assign sales group to sales office Assign sales organization - distribution channel - plant Assign sales area to credit control area Business Area Account Assignment Materials Management Assign purchasing organization to company code Assign purchasing organization to plant Assign standard purchasing organization to plant Assign purch. organization to reference purch. organization Logistics Execution Assign warehouse number to plant/storage location Assign shipping point to plant

Sales and Distribution

( Topics to be covered ) Special SD Business Processes

Basic Functions Pricing Free Goods Taxes Account Assignment/Costing Availability Check and Transfer of Requirements Delivery Scheduling and Transportation Scheduling Output Control Material Determination Dynamic Product Proposal Cross Selling Listing/Exclusion Partner Determination Text Control Log of Incomplete Items Credit Management/Risk Management Serial Numbers Routes Sales Sales Documents Sales Document Header Sales Document Item Schedule Lines Customer Service Contracts Scheduling Agreements with Delivery Schedules Define And Assign Reason For Blocking Define Variable Messages Define And Assign Status Profile Define Display Status in the Overview Screen Define Characteristics Display for Overview Screen Define Agreed Delivery Times Maintain Copy Control for Sales Documents Maintain Display of Date Category and Periods Lists Foreign Trade/Customs Billing Sales Support (CAS) Electronic Data Interchange Materials Management P.O. & S.T.O. Inventory Management Movement Types Logistics Execution Decentralized WMS Integration Warehouse Management Concept for Warehouse Management Master Data Strategies Hazardous Materials Activities Storage Units Planning and Monitoring Interfaces Define Decentralized Link to R/2 List of Temporary Storage Bins Archiving Concept Tools

Consignment Stock Processing Returnable Packaging Make-To-Order Production Individual Purchase Orders Bills of Materials in Sales Documents Third-Party Order Processing Batches in Sales Processing Configurable Materials in Sales Documents Rush Order Cash Sales ABAP LIS

Order / Delivery / Billing Scenarios

Shipping Basic Shipping Functions Deliveries Copying Control Picking Packing Grouped Deliveries Delivery List Transportation Basic Transportation Functions Shipments Shipment Costs Interfaces Customer Enhancement in Shipment Mobile Data Entry

Stock Transfer Using Stock Transport Order


Advantages of the Stock Transport Order A goods receipt can be planned in the receiving plant. You can enter a vendor (transport vendor) in the stock transport order. Delivery costs can be entered in the stock transport order. The stock transfer order is part of MRP: Purchase requisitions that were created in MRP can be converted into stock transport orders. The goods issue can be entered using a delivery via Shipping (LE-SHP ). The goods receipt can be posted directly to consumption. The entire process can be monitored via the purchase order history. Characteristics of the Various Stock Transfer Procedures Plant to plant 1 step Transfer postg. Valuation price Plant to plant 2 steps GI: 303 GR: 305 Valuation price St. trnsp. ord. w/o SD UB GI: 351 GR: 101 Valuation price St. trnsp. ord. with SD UB GI: 641 GR: 101 NL Valuation price St. trnsp. ord. with billing NB

Order type MM-PUR Movement type MM-IM Delivery type SD Billing type SD Doc. type MM-IV Price

Planning via... Stock after GI

Delivery costs Cross-company-code via...

GI: 643 GR: 101 NLCC IV RE Pricing in SD and MM Reservati Purchase Purchase Purchase on order order order Stock in Stock in Stock in (Stock in transfer Transit Transit transit CC) yes yes yes Company Company Company Company Revenue code code code code account; clearing clearing clearing clearing GR/IR clearing

Goods Issue in Inventory Management or in Shipping You can enter a goods issue for the stock transport order in either Inventory Management (MM-IM ) or Shipping (LE-SHP ). For goods issues in Shipping, a replenishment delivery is created Prerequisites for Goods Issues in Shipping: In Customizing for Purchasing, a delivery type must be assigned to the purchasing document type. If the document type does not have a delivery type, you can post the goods issue only in Inventory Management. The customer number of the receiving plant must also be maintained in Customizing for Purchasing. In the Customizing system of Sales & Distribution, the shipping point determination must be maintained. In the material master record, shipping data must be maintained.

Stock Transfer Between Plants in One Step


This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor Purchasing in the receiving plant is involved in the process. Transferring stock in one step has the following characteristics: The stock transfer is entered as a transfer posting in Inventory Management. The transfer posting can be planned by creating a reservation. The quantity of the stock transferred is posted immediately from the unrestricted-use stock of the issuing plant to the unrestricted-use stock of the receiving plant The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents for the transfer posting. The stock posting is offset against a company code clearing account.

Stock Transfer Between Plants in Two Steps


This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor Purchasing in the receiving plant is involved in the process. The stock transfer includes the following processes: 1. A goods issue in the issuing plant 2. A goods receipt in the receiving plant Transferring stock in two steps has the following characteristics: The transfer posting cannot be planned by creating a reservation. The quantity posted from stock is first of all managed as stock in transfer in the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. This enables the quantity "on the road" to be monitored. The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Stock Transport Order Without Delivery


This type of stock transfer not only involves Inventory Management but Purchasing in the receiving plant. The goods issue posting in Inventory Management is carried out without the involvement of SD. Characteristics of a Stock Transfer Order The quantity posted from stock is first of all managed as stock in transit of the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. This enables the quantity "on the road" to be monitored. Delivery costs can be entered in the stock transport order. The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Process Flow
1. Creating a stock transport order in the receiving plant Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement. 2. Posting a goods issue in the issuing plant Plant B supplies the goods to plant A. Plant B enters the goods issue for the stock transfer order. The goods are then posted to the stock in transit of the receiving plant. 3. Posting a goods receipt in the receiving plant Once the goods arrive in the receiving plant, the plant posts the goods receipt. The stock in transit is therefore reduced and the unrestricted-use stock increased. The goods receipt is entered with reference to the purchase order

Stock Transport Order with Delivery via Shipping


The following components are involved in this type of stock transfer: Purchasing (MM-PUR ) in entering the order Shipping (LE-SHP ) in making the delivery from the issuing plant Inventory Management (MM-IM ) at goods receipt in the receiving plant Characteristics of a Stock Transfer Order The quantity posted from stock is first of all managed as stock in transit of the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. This enables the quantity "on the road" to be monitored. Delivery costs can be entered in the stock transport order. The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account. Process Flow 1. Creating a stock transport order in the receiving plant Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement. 2. Posting a delivery in the issuing plant Plant B supplies the goods to plant A. Plant B enters a replenishment delivery in Shipping. The goods are then posted to the stock in transit of the receiving plant. 3. Posting a goods receipt in the receiving plant Once the goods arrive in the receiving plant, the plant posts a goods receipt for the delivery. The stock in transit is therefore reduced and the unrestricted-use stock increased.

Stock Transport Order with Delivery and Billing Document/Invoice


With this type of stock transfer, the transfer posting is not valuated at the valuation price of the material in the issuing plant but is defined in both the issuing and receiving plants using conditions. The following applications are involved in this type of stock transfer: Purchasing (MM-PUR ) in entering the order Shipping (LE-SHP ) in making the delivery from the issuing plant Billing (SD-BIL ) in creating the billing document for the delivery Inventory Management (MM-IM ) at goods receipt in the receiving plant Invoice Verification (MM-IV ) at invoice receipt in the receiving plant Characteristics of a Stock Transfer Order The quantity posted from the stock of the issuing plant is managed neither in the issuing plant nor in the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant. After the goods issue has been posted, the stock overview displays the quantity transferred as Stock in trans. CC . This stock is determined dynamically for stock balance display. With this transfer posting, price determination is carried out in both Purchasing and Sales & Distribution (SD). In Purchasing, the price of the material in question is determined in the usual manner (from the info record, for example). In SD, pricing is also carried out as normal during the billing process. The goods movements are valuated at the price determined in each case. Accounting documents are created for the following transactions: Goods issue Goods receipt Billing Invoice receipt

Stock Transport Order with Valuated and Non-Valuated Sales Order Stock When entering goods issues for cross-company-code stock transport orders, you can work with both valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you define the stock from which material is to be withdrawn by using the Dependent requirements indicator for individual and collective requirements . There are three options: Indicator set to Blank (individual and collective requirements): material is removed from sales order stock Indicator set to 1 (individual requirements only): material is removed from sales order stock Indicator set to 2 (collective requirements only): material is removed from unrestricted-use standard stock

Process Flow
1. Creating a stock transport order in the receiving plant Purchasing also determines the price for the materials. 2. Posting a delivery in the issuing plant The issuing plant enters a replenishment delivery in Sales and Distribution. Unlike a stock transfer without a billing document, no stock in transit is created. 3. Creating a billing document in the issuing plant The issuing plant creates the billing document for the delivery. SD also determines the price for the delivery 4. Posting a goods receipt in the receiving plant The receiving plant posts a goods receipt for the delivery. The goods are posted to unrestricted-use stock 5. Posting an invoice in the receiving plant The invoice referring to the billing document is entered in the receiving plant. Before you can transfer stock (using a stock transport order) with the delivery function and a bill is issued, the plant must be assigned to a vendor. You maintain the vendor - plant assignment in the vendor master record. ( Master data --> Vendor --> Purchasing --> Extras --> Add. purchasing data. If a user enters a vendor when creating a stock transport order, the plant is automatically copied from the vendor master record. A stock transport order with delivery and billing is a mixture of a standard purchase order and a stock transport order: as in the standard purchase order, when items are entered (standard items with no item category) price determination is carried out and shipping data established; as in the stock transport order, the transfer of stocks from one location to another is monitored. Valuation of Stock Transfers Plant 0002 orders 10 kg of a material from plant 0001. The following prices apply: Valuation price of material (plant 0001): 10 $/kg Price for intercompany billing (plant 0001): 12 $/kg Order price (plant 0002): 11 $/kg The following postings are made for the individual transactions: Plant Transacti Value on 1 Goods 100 issue 100 + Account Stock account Change involving stocks Sales revenue account Customer account GR/IR clearing Stock account Vendor account GR/IR clearing Price difference account or stock account

1 Billing

120 -

120 + 2 Goods receipt 110 110 + 2 Invoice receipt 120 110 + 10 +

Set up Stock Transport order ( IMG )


MM --> Purchasing --> Purchase Order --> Set Up STO. Plant Checking Rule Define Checking Rule Customer number / Sales org. Distbn Channel

Assign Checking Rule to Checking gr. For availability Considers following Stocks / Receipts / Replenishment lead time / St.Loc. Check

Assign delivery Type / Checking Rule Document Type Delivery Type

Purch. Doc. Type / Supply Plant / Delivery Type / Checking Rule UB - STO ( Note : NB - Std. P.O. ) NL - STO, NLR - Returns STO, NLCC - STO C.C., NCR - Returns STO CC., RL - Returns Std. P.O.

Purchasing Document type

Supply Plant / Plant / Order Type ( For Delivering plant ) Supply Plant / Plant / Order Type ( For Receiving plant ) Delivery can be created with transaction VL10B.

Consignment Stock

Sales Ord. Item Sch. Line Type Category Category

Process

Delivery Type

Movt. Type Plant (Unsrstricte d Stock ) 631 DOWN 633 No Change 632 UP 634 No Change

Stock Positions

Consignment Fill-Up KB Consignment Issue KE Consignment Pick - Up KA Consignment Returns KR

KBN KEN KAN KRN

C0 / C1 F0 / F1 D0

Order/Delivery / PGI/No Billing Order / Delivery / PGI / Billing Order / Returns Delivery / PGI / No Billing Order / Returns Delivery / PGR / Credit Memo

LF LF LR LR

Plant stock to Consignment stock Cust. Spl. Stock To Customer Customer Spl. Stock to Plant stock Customer to Plant stock

Customer Special Stock UP DOWN DOWN UP

End User / Customer NIL UP No Change DOWN

Individual Purchase Orders


Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors. During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you. You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be The processing of individual purchase orders is controlled by the material type. Material types define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. Creating Automatically If you procure a material exclusively by individual purchase order, you can define in the material master record that the material is always treated as an individual purchase order item during sales processing. The system will then automatically determine the appropriate item category TAB. To identify a material as an individual purchase order item in the material master record, enter BANC in the field Item category group on the Sales: sales org. 2 screen. Creating Manually If you want to use an individual purchase order to purchase a material that you normally produce yourself, you can overwrite the item category in the sales order, provided that the configuration of your system permits it. The standard version of the SAP R/3 System, however, does not support this transaction. Enter the item category group NORM in the Item category group field in the Sales: sales org. 2 screen of the material master record for materials that you normally produce yourself. If, as an exception, you purchase a material using an individual purchase order, change the entry in the ItCa field in the sales document from TAN to TAB. Changing the Sales Order You cannot subsequently change the quantity or the delivery date for an individual purchase order item in the purchase requisition. You can only change them in the sales order. Changes you make in the sales order are always automatically reflected in the corresponding purchase requisition, as long as this is permitted by the release status for the purchase requisition. When you create a delivery, the system checks if goods are available in the sales order stock. You then create a delivery-related billing document. Displaying Procurement Details 1. Select the individual purchase item on the Item Overview tab page in the sales order, on the overview screen, and choose Goto Item Schedule lines . 2. Select a schedule line and choose Procurement. The system displays a screen showing the procurement details. In the Ordering party field in the table, you will receive the purchase requisition numbers for the schedule line. In the Purchase requisition field, you will receive the item number for the purchase requisition. Scheduling Individual Purchase Order Items If you create a sales order for which the determined delivery date differs from the requested delivery date, the Purchase Order Scheduling dialog box appears. In this window the determined delivery date is displayed as the proposed delivery date. If the customer accepts this delivery date, select the Fix qty/date field to fix the date and the confirmed quantity. The provision date determined by the scheduling of the confirmed quantity is copied into the corresponding purchase requisition as the delivery date. If the customer requests that you deliver the goods earlier than the system can confirm, leave the field empty. In this case the provision date for the requested delivery date is copied into the purchase requisition. This is based on the assumption that it is still possible to deliver on the requested delivery date by shortening the procurement lead time, for example. During the automatic scheduling of individual purchase order items, the lead times determined by Purchasing, such as the delivery processing time and the purchasing processing time, are also taken into account.

schedule line category - CB. Costs in Individual Purchase Orders The values from the vendor invoice, or from the purchase order, can be used as the cost price in individual purchase orders. You can make the necessary settings for this in Customizing. Settings in Customizing Billing is related to the delivery for customer individual purchase orders. You need to make certain settings in Customizing for billing document copying control at item level if you want the cost for the billing document to be taken from the vendor invoice or purchase order, and not the valuation segment in the material master. The quantity indicator in the billing documents document flow then controls where the cost comes from. If you activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. This assumes that the customer billing document cant be created until the vendor invoice has been posted, checked by copying requirement 004. If you activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. Goods receipt for customer purchase orders is not normally valuated and the value from the purchase order is used as the cost. When you save a sales order that contains one or more individual purchase order items, the system automatically creates a purchase requisition in Purchasing. For each individual purchase order item, a corresponding purchase requisition item is created. During the creation of the purchase requisition the system automatically determines a vendor for each purchase requisition item. If the individual purchase order item contains more than one schedule line, the system creates a purchase requisition item for each order quantity. Purchase orders are created from purchase requisitions in the usual way. If the vendor confirms dates and quantities that differ from those in the purchase order and they are then entered in the purchase order, the changed data is automatically copied into the sales order.

Third-Party Order Processing


n third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself. Processing Third-Party Orders in Sales The processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. Automatic third-party order processing If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record. Manual third-party order processing In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master. If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item. DEVLIVERY SCHEDULING IN SALES - During the automatic delivery scheduling of third-party items, the system takes into account lead times specified by the purchasing department. For example, the system allows for the time required by the vendor to deliver the goods to your customer and also the time required by the purchasing department to process third-party orders. If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order. Schedule Line Category - CS. Processing Third-Party Orders in Purchasing When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line. All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order. If a purchase order already exists for the business transaction and you make changes in the sales order, you must also make these changes manually in the purchase order as it is not updated automatically. Billing Third-Party Orders Relevance for billingindicator in item category has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F. each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received. If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.

You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level. Billed qty. field @item category level - Indicator E for goods receipt qty less invocie qty. For normal 3rd party processing, Indicator dhould be F - Invoice receipt qty less invocie qty. Costs in Third-Party Business Transaction To do this, you can use the condition type VPRS in the R/3 System as the cost price. The condition type VPRS is used as a statistical value in the pricing procedure. If you want the cost for the billing document to be taken from the vendor invoice with proportional conditions, the quantity indicator in the billing documents document flow then controls where the cost comes from. Activate indicator F in the Billing quantity field (billing quantity equals goods receipt quantity minus quantity already billed). Credit Memo Processing in Third-Party Business Transaction If the vendor grants you a credit memo on a quantity or a value basis, you can then send this credit memo directly to your customer. The billing type Third-party credit memo (G2S) is available for this. The billing type Third-party credit memo works with the item category TASG (third-party credit memo item). The sales-relevant indicator F is set in Customizing for Sales for this item category. This means that the cost is not created. In Customizing for Sales, the item category TASG is set at item level in copying control for the billing type G2S (copying control sales document by billing document) as the target item category (source: TAS-> Target:> TASG.) Create a billing documente with billing type Third-party credit memo Enter the third-party order as a document still to be processed. The quantities are automatically removed from the Displaying Purchase Requisitions After you save a sales order containing third-party items, the system automatically copies the numbers of the corresponding purchase requisitions into the sales order. Use the following procedure to view the information: Select the third-party item on the Item Overview tab page, and choose Goto Item Schedule lines . In the Ordering party field, you will receive the purchase requisition number for the schedule line. In the Purchase requisition field, you will receive the item number for the purchase requisition. Monitoring Quantity Differences Between Sales and Purchasing You can use report SDMFSTRP to create a list of all sales orders with third-party order items for which there are discrepancies between the quantities ordered, invoiced, canceled, or credited in Sales and the quantities ordered, invoiced or credited in Purchasing. A third-party order for 10 pieces of a material gives rise to a purchase order of 10 pieces. Three pieces were delivered in the first delivery and this has been billed to the customer. The vendor sends a credit memo for three pieces so that the open quantity is 10 in the purchasing document and 7 in the sales document. The report lists all the documents that belong to this transaction and specifies the quantities that are contained in the documents. To run this report, proceed as follows: 1. Choose Tools ABAP/4 Workbench on the initial screen. 2. Choose Development ABAP/4 Editor. 3. Enter the report name SDMFSTRP in the program field and choose Execute. 4. You reach the selection screen. 5. Enter the interval of sales orders and the time period which you want to monitor. 6. Choose Program Execute.

Third-Party Processing
( Item Category - TAS / Item Category Group - BANS )

Third-Party Processing in Sales The following activities result from the creation of a sales order with third-party items: A purchase requisition is created.

The number of the purchase requisition is updated in the sales order. The item is scheduled automatically. The delivery time required by the vendor and the processing time in Purchasing are taken into account.

Changes to the Sales Order

Third-Party Processing in Inventory Management

Results of the Goods Receipt The goods receipt has the same effect as a goods receipt for a purchase order with account assignment: No stock update is made, as the goods receipt is posted to consumption The value of the purchase order is posted to a GR/IR clearing account for the purposes of Invoice Verification. The goods receipt can be tracked in the PO history. Third-Party Processing in Invoice Verification When the vendor invoice arrives, you then enter the invoice for the third-party order in Invoice Verification.

Third-Party Processing
( Item Category - TAS / Item Category Group - BANS ) The company does not deliver the material. You forward the order to an external vendor instead, who then sends the material directly to the customer and invoices the company. Third-Party Processing in Sales The following activities result from the creation of a sales order with third-party items: A purchase requisition is created. If a third-party item from the sales order calls for more than one delivery schedule, the system creates a purchase requisition item for each individual quantity. The number of the purchase requisition is updated in the sales order. The item is scheduled automatically. The delivery time required by the vendor and the processing time in Purchasing are taken into account. The person who created the sales order can directly access the purchase requisition in order to assign the correct vendor in automatic source determination. Changes to the Sales Order The quantity and delivery date for a third-party item can be changed later in the sales order. The changes are then made automatically to the purchase requisition if the release status of the purchase requisition allows changes still to be made. Third-Party Processing in Inventory Management Since a third-party order involves a movement from the vendor direct to the customer, Inventory Management is not in any way affected. If you wish to document the movement in the system, however, you can create a goods receipt for the third-party order. Results of the Goods Receipt The goods receipt has the same effect as a goods receipt for a purchase order with account assignment: No stock update is made, as the goods receipt is posted to consumption The value of the purchase order is posted to a GR/IR clearing account for the purposes of Invoice Verification. The goods receipt can be tracked in the PO history. Third-Party Processing in Invoice Verification When the vendor invoice arrives, you then enter the invoice for the third-party order in Invoice Verification. If you posted a statistical goods receipt for the purchase order, the invoice receipt results in an offsetting entry on the GR/IR clearing account, which is cleared. If the customer is to be billed in Sales and Distribution based on the invoice quantity specified in the vendor invoice, this quantity is used as the basis for the billing document in Sales and Distribution. The billing document can only be posted once the vendor invoice has been posted.

Batch Determination can be used in Quotations Quantity contracts Sales orders (or scheduling agreement) Automatic / Manual Delivery ( Automatic / Manual )

To reserve stock for customer To reserve stock for customer Batch split NOT possible Batch split possible if batches copied from order, can't be delited

Master Data Master data to be maintained for Strategy Type. Material Master Classification View Create / Change characteristics

Transaction code : VCH1 Maintain class / Characteristics Transaction code : MSC2N

IMG Batch Determination and Batch Check -- ( Logistics General --> Batch Mgt. ) Condition Tables Access Sequences Strategy Types ( See screen dump for details) SD01 Customer/Material SD02 Customer/Matl/Plant SD03 CountryOfDest/MatGrp SD04 Customer hierarchy SD05 Cust. hier./mat. Batch Search Procedure Definition SD0001 Sales Org./ Dist. Ch./ Div./ Doc. Type / Search Batch Search Procedure Allocation and Check Activation Proc./ Check batch Sales Item category / Automatic Batch Determn Delivery Item category / Automatic Batch Determn Activate Automatic Batch Determination in SD Define Selection Classes Class type 022 / Class Group / Characteristics Sort sequence / Class Group / Charact.(Ascending / Define Sort Rules Descending ) / Values Maintain Batch Allocation Strategy Number Ranges To-Year flag / Number length / buffer Warning Batch Where-Used List Activate at Plant level Batch-Specific Material Units of Measure Shelf Life Expiration Date (SLED) Maintain Period Indicator / Set exp. Date Check ( Plant & Movt. Type Level )

Account Assignment SD --> Basic Functions --> Account Assignment/costing

Master Data Relevant For Account Assignment


Define Account Assignment Groups for Materials Define Account Assignment Groups for Customers Maintain access sequences for account determination Maintain in Materials master in Sales Org. 2 view Maintain in Customer Master --> Sales area data --> Billing document view

KOFI 10 20 30 40 50 1 2 3 5 4 Cust.Grp/MaterialGrp/AcctKey Cust.Grp/Account Key Material Grp/Acct Key Acct Key General

Define account determination types Define account determination procedure

KOFI

KOFI00 Step 10 20

Control

Cond.. Type 1 KOFI 2 KOFK

Description Requirement Acct determination Acct Determ.with CO

3 Without CO acct.ass. 2 With CO acct.assignt

Assign Account Determination Billing Type / Account Detmn. Procedure Procedure Assign Account Key Assign G/L account Application Condn Type Chart of A/C V KOFI INT Sales Org. SVDO In pricing Procedure for every Condition Type A/C Assignment gr. A/C Assignment gr. Account Key For Customers For Materials A A ERL

Account Keys

ERB ERL ERS ERU ERF

Rebate sales deduct. Revenue Sales deductions Rebate Accruals Freight revenue

G/L Account 140000

Availability Check Material available in stock 1 2 Material not available in stock

Material Available date is proposed on the basis of Pick, pack, loading time. Initially requirements are transferred to purchase & Production. Material Available date is proposed on the basis of procurement and production lead times alongwith Pick, pack, loading time.

The scope of the check can be defined differently in the sales documents and in the deliveries Types of Availability Check Check on the basis of the ATP quantities

Check against product allocation Check against planning

This type of check is performed dynamically for each transaction, taking into account the relevant stock and planned goods movements with or without replenishment lead time. Planned independent requirements are not taken into account here. Product allocation facilitates period-based distribution of products for certain customers or regions The check against planning is performed against independent requirements

Check availability with respect to Plant & Checking rule

For Order in Environment --> Availability Overview For Delivery Environment --> Inventory management --> Availability overview To display the available quantity for each material and plant from the MRP point of view; the available quantities are determined from the receipt elements and stock elements that are valid for MRP (Logistics Materials management Inventory management Environment Stock Stock/rqmts. list )

Display current requirements/inventory MD04

Check on the basis of the ATP quantities Availability Check Including Replenishment Time Availability Check Excluding Replenishment Lead Time

Controlling the Availability Check in Sales and Distribution Processing


Strategy group The allowed planning strategies (main strategy and further possible strategies) are combined in the strategy group. Maintained in the material master record in the MRP 1 Screen e.g. The planning strategy specifies the requirements type for planning and customer requirements. e.g.

10 / 20 / 30 / 40

Planning Strategy

10 11 20 40

Make-to-stock production Make-to-stock prod./gross reqmts plng Make-to-order production Planning with final assembly

PATH

Production --> MRP --> Master Data --> Independent Requirement Parameters --> Planning Strategy

Requirements type

The requirements type refers to the requirements class and its control features. e.g. Requirements type LSF VSF KSL BSF KE KSV Make-to-stock production Planning with final assembly Sale frm stck w/o ind.req.red. Gross planned indep. reqmts Indiv.cust.ord. w/o consumpt. Sales order with consumption Requirements Class 100 Make-to-stock prod. 101 Plnng with assembly 30 Sale from stock 102 Gross reqmts plnning 40 Mke-to-ord.w/o cons. 50 Warehouse consumpt.

Requirements Class

The requirements class contains all control features for planning such as relevance for planning, requirements planning strategy and requirements consumption strategy Controls

Availability Ch. Req. Transfer Independent Req. reduction No MRP Product Allocation

Control Features Specific to Sales and Distribution


Checking group 01 / Daily requirements 02 / Individual requirement CH / Batch wise requirement KP / No check The checking group specifies in combination with the checking rule the scope of the availability check. It is proposed in the material master record on the basis of the material type and the plant, and copied into the sales and distribution documents Checking Rule In prodn -->SOP --> Master Data -->Assignment of Validation Rules to Key Figures --> Maintain Checking Rule for Availability Check The individual checking rules define by transaction, which stock and inward and outward movement of goods should be taken into account for the availability check. The possible settings for this at schedule line level are dependent on the settings in the requirements class which is determined from the requirements type of the material. The delivery item category can be used to control whether an availability check takes place in deliveries. The checking group controls whether the system is to create indivdual or collective requirements in sales and shipping processing material block for the availability check with transfer of requirements can be set here. The checking group can also be used to deactivate the availability check for Assembly orders A checking group must be defined in the material master record on the Sales/plant data screen in the Availability check field

Schedule line category

Delivery item category

Timing of the Availability Check in Sales and Distribution Processing


Values based on past experience of the shipping department are entered in the system in the form of transit times, loading times, pick/pack times, and transportation lead times: The transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route. The loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material. The pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item. The transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.

Delivery Scheduling - Transportation Scheduling


Shipping point Shipping point, route, and weight and/or loading group

It is possible to specify by shipping point whether the system proposes loading time and pick/pack time for delivery scheduling. To determine these times, use the following criteria: Processing may be carried out more quickly in one shipping point than another. Since the route is required for determining the mode of transport, a delay in processing or quicker processing can be taken into account here. Weight can be important for determining pick/pack time, the loading group from the material master record for determining the loading time.

Shipping point, weight and/or loading group

If the route is not to be taken into account when the pick/pack time or loading time is determined, the shipping point and the weight become the only criteria used for determining the pick/pack time. The shipping point and the loading group become the criteria used for determining the loading time. The transportation lead time and the transit time for transportation scheduling are determined using the route.

Backward Scheduling Forward Scheduling Reactions to the Availability Check in Sales Documents One-time delivery on the requested delivery date Complete delivery Delivery proposal Availability Across Plants Delivery Agreements in the Customer Master Record Performing the Availability Check Again Automatic Checks In the following situations, a new availability check is automatically carried out: Quantity change Date change (requested delivery date, material availability date) Change to the fixed data After new delivery scheduling (for example, the route or shipping point has been changed) Change of plant Change of storage location or batch Removal of blocks which affect requirements Removal of reasons for rejection When you create a delivery, an availability check is initiated for the picking date. If the quantity available of a material is lower than the order quantity, the system enters the available quantity as the delivery quantity. If a partial delivery is not allowed for the sales order, the fact that the delivery quantity is smaller than the order quantity is noted in the log for the delivery.

Availability Check in Shipping

Process Flow Availability Check Customer Requests Delivery Date With backward scheduling, system decides on which date material should be available considering time requireed for activities like Transit, Loading, Packing, Picking, Transportation planning. If this date lies in the past, system does Forward scheduling from Today's date considering time requireed for activities like Transit, Loading, Packing, Picking, Transportation planning alongwith Availibility check to confirm the Qty. and date. Availbility check gives 3 proposals. (Sales Order Schedule Lines) One-time delivery confirmed Qty. - If the entire requested qty. can be made available on Requested delivery date. Complete Delivery - If the entire requested qty. can be made available on a LATER date. (Complete Delivery indicator in customer master) Delivery proposals - If partial quantities are confirmed with different schedule lines System does availability check considering Individual OR Collective requirements (checking group, 01 / 02 - defined in Sales/general plant view of material master) with the combination of checking rule. This determines scope of check (Stocks+Receipts-issues).

Checking Group - Customizing / SD / Basic Functions / Availability check & Transfer of Requirements / Availability Check Checking Rule - Customizing / Production / SOP / Master Data / Assignment of validation rules to key figures

Availbility check will be done at the Delivering Plant in the Sales Order. System determines Delivering Plant as per this Hierrachy - Customer-Material Info Record / Customer Master / Material Master. Availability of the material can be checked across other plants also. If the material is confirmed from one of the other plants, schedule lines for the sales order can be created from that plant. Settings Related to Availability check These proposals are given only if Availbility check indicator is switched on in the Schedule Line Category of the Material. Schedule Line Category of the Material is determined for Item category and MRP Type But Global control of Availbility check lies in Requirement Class(100-Make to stock production) Requirement class is determined as below.(Example below is for Make-to-stock Production) Planning strategy group (10-Make to stock production) is maintained - In Material Master - MRP3 view ** Planning Strategy (10-Make to stock production) is assigned to Planning strategy group.## Requirement type for Planned Independent Requirements (LSF-Make-to-stock production) and Requirement type for Customer Requirements (KSL-Sale frm stck w/o ind.req.reduction) are attached to Planning Strategy Reuirement type is assigned to Requirement class which is having controls of Availability check, Transfer of requirements, independent Requirements reduction, No MRP and Allocation indicator. ***If Planning strategy group is not maintained in material master, Plant and MRP group together determine Planning strategy group ##If no requirements type is found using the planning strategy, the system tries to determine a corresponding requirements type on the basis of the MRP type and the item category. Customizing / Production / MRP / Master Data / Independent Requirements parameters / Planning Strategy Customizing / SD / Basic Functions / Availability check & Transfer of Requirements / Transfer of Requirements / Determination of Requirement Type using Transaction. Customizing / SD / Sales / schedule lines

Customizing / Production / MRP / Master Data / Independent Requirements parameters / Planning Strategy Customizing / SD / Basic Functions / Availability check & Transfer of Requirements / Transfer of Requirements

Types of Transfer of Requirements Maintained in Material master --> Sales plant Data --> Availability Check Field individual requirements collective requirements Controlling the Transfer of Requirements in Sales and Distribution Documents The following control elements are of significance: Requirements type Requirements Class Checking group Schedule line category Performing Rescheduling of Sales Documents To perform rescheduling, proceed as follows: 1. In the entry screen, select Logistics Sales/distribution Sales . You reach the Sales screen. 2. Select Environment Backorders Rescheduling Execute . You reach the Rescheduling in Sales: By Material screen where you carry out rescheduling. Fixing Quantities and Dates in Sales Documents Customer Accepts the Schedule Line Proposal - mark the Fixed date and qty field in schedule line screen of Sales Order. The system then transfers the requirements for the schedule lines to material requirements planning. Customer does not accept schedule lines - Leave the Fixed date and qty field Blank in schedule line screen of Sales Order. The system then only passes on the requirements for the requested delivery date. Additional Production capacity check will be checked to see that entire quantity can be delivered on the req. delivery date.

Allocating and Reducing Independent Requirements in Sales and Distribution Processing

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Reducing Independent Requirements Independent requirements from planning are reduced by the goods issue posting in the delivery. The quantity decrease is determined from consumption period and mode - Entered in MRP3 screen of Material master

Consumption Mode No planning consumption Backwards consumption only Forwards consumption only Backwards/forwards consumption Forwards/backwards consumption Planning Material You can create a common planning material and assign similar materials to it. Independent requirements are created for the planning material to cover the requirements which are expected for the materials assigned to the planning material. Thus, customer requirements for these materials are consumed by the independent requirements of the planning material. This means that you do not have to create independent requirements for each material. Maintain planning material to the materials on the MRP 3 screen You cannot perform the transfer of requirements with the availability check when planning is carried out using planning materials.

Credit Control Area


An organizational unit that represents the area where customer credit is awarded and monitored.

Credit and risk management takes place in the credit control area. Centralized credit management - Define one credit control area for all company codes. Credit Control Area 1 Company Code 1 Company Code 2 Sales Org. 1 Sales Org. 2 CUSTOMER 1 CUSTOMER 1 Credit Limit 50000

Credit Control Area 1 Company Code 1 Sales Org. 1 CUSTOMER 1 Credit Limit 50000

Credit Control Area 2 Company Code 2 Sales Org. 2 CUSTOMER 1 Credit Limit 100000

Credit limits and credit exposure are managed at both credit control area and customer level.

Deriving the Credit Control Area


The credit control area is determined in the following sequence: 1. User exit EXIT_SAPFV45K_001 2. Sales Area ( The sales areas can be assigned to a credit control area in Customizing ) 3. Customer master (payers sales area segment) 4. Company code for the sales organization

Specifying Credit Limits by Credit Control Area

Credit Limits for Groups of Customers

Sales and Distribution Functions in Credit Management


VKM1 VKM5 VA14L VL06 VF05 Blocked sales and distribution documents from a list Blocked Delivery documents from a list. Sales and distrib. documents blocked for delivery Processing deliveries Processing Billing documents.

FD32

- Oldest due item ( extra --> Oldest item ) Last Payment ( extra --> Last Payment ) Credit mgt. --> Credit mgt. Info. System - Credit master sheet F.31 - Credit Overview FCVC - Early warning list ( Credit Mgt. Info System )

Credit Control Area


An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer. Credit and risk management takes place in the credit control area. Centralized credit management - Define one credit control area for all company codes. Credit Control Area 1 Company Code 1 Company Code 2 Sales Org. 1 Sales Org. 2 CUSTOMER 1 CUSTOMER 1 Credit Limit 50000 Decentralized credit management - Define credit control areas for each company code or each group of company codes. Credit Control Area 1 Credit Control Area 2 Company Code 1 Company Code 2 Sales Org. 1 Sales Org. 2 CUSTOMER 1 CUSTOMER 1 Credit Limit 50000 Credit Limit 100000 Credit limits and credit exposure are managed at both credit control area and customer level. Set up credit control areas -- Enterprise Structure --> Definition --> Financial Accounting and then Maintain credit control area. Assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record. Creating Credit data for a customer as Accounting --> Financial accounting --> Accounts receivable --> Credit management --> Master data --> Change ( FD32 ) In Central data fill Total Amount / Individual Limit / Currency. The credit limit is managed in a separate credit limit currency, which you determine for each control area. This currency is separate from the local (company code) currency. Financial Accounting --> Accounts Receivable and Accounts Payable --> Credit Management --> Credit Control Account --> Assign Permitted Credit control Area to Company code Enterprise Structure Structure maintenance Assignment Sales and Distribution Assign sales organisation to Company Code

Deriving the Credit Control Area


The credit control area is determined in the following sequence: 1. User exit EXIT_SAPFV45K_001 2. Sales Area ( The sales areas can be assigned to a credit control area in Customizing ) 3. Customer master (payers sales area segment) 4. Company code for the sales organization

Specifying Credit Limits by Credit Control Area


specify individual credit limits for each credit control area. Expand your credit control for a customer by specifying a central credit limit for all credit control areas to which that customer is assigned. The total of the limits at the level of the credit control area must not exceed the total limit for all credit control areas. The credit limits at the control area level are checked during sales order processing.

Credit Limits for Groups of Customers

You can assign a credit limit to a group of customers, as well as to an individual customer. If a company has different branches, you would define the credit limit for just one customer in this group (the head office) and this customer account then becomes the credit account. 1. To assign a credit account to a branch account, from the Logistics --> SD --> Credit Mgt. --> Master Data -> Change ( FD32 ) Enter the name of your customer, the corresponding credit control area and select the Status indicator. The system displays the Change Customer Credit Management: Status screen. Choose the function Edit --> Change credit account. In the dialog box that appears, you can enter the credit account (the account number of the customer you are using) to set the credit limit for the entire group.The accumulating total of receivables is recorded both for the reference customer and the "dependent" customer. However, the system checks only against the reference customer as to whether the credit limit has been exceeded. When displaying the credit account, you can view which customers are referenced to this account. To do this, from the credit account master data screen, choose Edit --> Cust. for credit acct.

Sales and Distribution Functions in Credit Management


VKM1 - Blocked sales and distribution documents from a list VKM5 - Blocked Delivery documents from a list. VA14L - Sales and distrib. documents blocked for delivery VL06 - Processing deliveries VF05 - Processing Billing documents. FD11 - Account Analysis ( Accounting --> Accounts Receivables --> Credit Mgt. --> Account --> Analysis ) for Customer / Company code & Fiscal Year combination. FD10N - Display Balances ( Accounting --> Accounts Receivables --> Credit Mgt. --> Account --> Analysis ) for Customer / Company code & Fiscal Year combination. FD32 - Oldest due item ( extra --> Oldest item ) Last Payment ( extra --> Last Payment ) Credit mgt. --> Credit mgt. Info. System - Credit master sheet F.31 - Credit Overview FCVC - Early warning list ( Credit Mgt. Info System )

Pricing

The calculated subtotals are used in credit functions Create Partner functions credit representative (KB ) and credit manager (KM ) allocated to partner type PE

Partner Determination

Output Determination Even if Order or item is blocked due to credit check, Availability check & Transfer of requirement can be done.

Output Det. Procedure / Output cond. Type KRML / Cond.record / Assign out.proc. To Partner Fun.

Horizon Period in customer master --> environment --> credit management IMG Setting Enterprise Structure->Definition->Financial Accounting->Define credit control area Currency / Fiscal Year / Risk Category / Credit Limit Credit limit & risk category is updated in Customer Master from Credit control area set up. Enterprise Structure ->Financial Accounting-> SD --> Basic Functions --> Credit Mgt/Risk Mgt. -->Credit Mgt/Risk Mgt Settings -->Item Category / Credit Active

Define Credit control area Set up in Credit control Area

Assigning credit control areas to company codes

Determine Active Receivables Per Item Category

Controls to Decide Wheterh to have Simple Credit OR Automatic Credit Control for Sales Documents Define Credit Check for Sales Doc. Type Field Check Credit limit - If A,B, and C for Siple Credit Limit D - Automatic Credit Control No credit limit check A Run simple credit limit check and warning message B Rund simple redit limit check and error message C Run simple credit limit check and delivery block D Credit management: Automatic credit control

Automatic Credit Control when used at Sales Order, Delivery & PGI stage Define Credit Group Sales Doc. Type Delivery Type Assignment in Automatic Credit Control 01 Sales Order / 02 Delivery / 03 PGI Check Credit / Credit Group Delivery Credit Gr. / GI Credit Group Credit control Area / Risk Category / Credit Gr. /

Open Orders without time horizon + Open Deliveries + Open billing + Open Items Open Orders with time horizon + Open Deliveries + Open billing + Dyanamic Credit Check Open Items Credit check against critical fields Payment Terms / Additional Value Days / Fixed Value Date Document Value Maintain Max. Doc. Value Credit limit Seasonal Factor In % and time horizon Reactions (Warning/Error) and blocking of Docs. Is also defined in this screen Static Credit Check

Query 1) How individual customer's credit limit can be changed ?

Rebate Agreements

rebate agreement imp. Details General Rebate Process

Rebate Types

Prerequisites for Processing Rebates

Note :

Agreement type

Agreement type 0001

0002

0003

0004

0005

Rebate Agreements
(Rebate Agreement are created wrt agreement type ) VBO1

Note : ( IMG )

Accruals

Settling Rebate Agreements

A rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period. who receives the rebate payment on what criteria the rebate is based ( customer or customer/material etc ) create separate condition records for each product the customer buys specifying amount or percentage the system keeps track of all billing documents (invoices, credit and debit memos) that are relevant for rebate processing. if you wish, automatically post accruals so that the accumulated value of a rebate is recorded for accounting purposes. A rebate agreement is finally settled when you issue a credit memo to the customer for the accumulated rebate total. Rebate based on a material Rebate based on a customer Rebate based on a customer hierarchy Rebate based on a group of materials Activate Rebate control in Sales Organisation Payer ( customer master --> Sales area data --> Billing View ) Billing Type If you plan to create rebates that do not depend on a material, but instead, for example, depend only on the customer, you must create a special material master record for a settlement material. The rebate agreement type you specify determines which data the system automatically proposes for the corresponding rebate agreement. For example, the system can propose which condition types you can use in an agreement which validity period the system automatically proposes for an agreement which status is required before an agreement can be processed for payment. which rebate agreement types are defined in Customizing for Sales and Distribution. Basis of rebate Customer/material (% rebate) Customer/rebate group (% rebate) Customer/material (quantity dependent) Customer (% rebate) Customer hierarchy (% rebate) condition type BO01

BO01

BO02

BO03

BO04

Cust. hierarchy/material (% rebate) Sales volume independent The rebate agreement includes general information and terms that apply to all the condition records it contains. For example, the method of payment and the rebate recipient you specify for a rebate agreement will apply to all the condition records you create within the agreement. You can define the following data in a rebate agreement. This general data applies to all condition records that you create within the rebate agreement:

BO05

BO06

Validity period Status (for example, whether the agreement is released for settlement) Rebate recipient (the party who receives the credit memo) Currency (default from the sales organization) Method of payment (check, bank transfer, and so on) The credit memo passes this information on to Financial Accounting. Data Defined in a Condition Record Basis for the rebate (customer, customer/material, rebate group, and so on) Validity period (the validity period for each condition record must be the same as or lie within the validity period of the rebate agreement) Condition rate Material for settlement Accrual rate Other control data, such as the pricing scale type Some information in a condition record is automatically proposed by the system from corresponding condition types (BO01, BO02, and so on). 1) Condition types are maintained in Condition type Group. 2) Condition type Groups are maintainted in Agreement type. Condition Types are proposed by the system while maintaining condition record because of above assignments Material for Settlement You may have to create rebates that do not depend on a material, but instead, for example, on: a customer a customer hierarchy a group of materials You will then need to refer to a material for settlement. The system uses this material when you pay out the rebate. Creating Rebate Agreements In the Create Rebate Agreement Screen (VBO1), the system can automatically propose organizational data (sales organization, division, and so on). Enter the rebate agreement type according to the kind of rebate you want to create Enter the name or number of the rebate recipient You are now ready to create condition records for the rebate agreement. Texts for Rebate Agreements The following text types are set up in the standard system:

0001: Opening comments 0002: Licenses 0003: Closing comments 1000: Bonus payment There are some buttons in the condition record for text maintenance. Deleting Rebate Agreements The rebate agreement receives status C (settlement created). The system uses a credit memo request to remove the accruals created on the basis of the rebate agreement. You can display the credit memo request for the rebate agreement via Payment Rebate documents.

Creating Condition Records for a Rebate Agreement create condition records by choosing Goto Conditions to get to the Agreement Overview screen. Enter customer and condition rate. If you do not enter a value for the accrual rate, the system automatically proposes the value you entered as the condition rate. create a pricing scale for a condition record if required. If the condition record only refers to the customer, the system prompts you to enter a value in the settlement material field. Save the condition record. Automatically Renewing Rebate Agreements You can set for each rebate agreement whether it is to be renewed automatically or not. Select Extras Rebate calendar Reactivate or Remove in the Change Rebate mode. You can set the system to automatically renew rebate agreements. Renewing Rebate Agreements The system issues a list of all rebate agreements which were renewed. Rebate agreements which the system could not renew are listed in the log. Logistics Sales and distribution Master data Agreements Rebate agreement Extend Retroactive Agreements You can create a rebate agreement for which the validity start date lies in the past. The system then takes into account all the rebate-relevant billing documents that were created between the validity start date and the date you created the rebate agreement.
The rebate index is used internally to settle rebate agreements that have been created retrospectively and in order to display the drill-down (the billing documents involved) for rebate agreements. Rebate processing index is correct if The sales organization, and the relevant billing types have all been classified as relevant for rebate The pricing procedure has been defined to include the condition types for rebate processing. The relevant payers have been classified as relevant for rebate in the master record. In addition to the credit memo request of FINAL settlement, the system creates a correction sales document (type B2) automatically for this amount.

Rebate accruals allow your accounting department to keep track of how much your company owes customers with whom you have rebate agreements.

Every time you process a rebate-relevant billing document (an invoice, a credit or debit memo), the system automatically posts an accrual to financial accounting (FI). Within FI, the rebate accrual is posted to two accounts: a sales deduction account (account key - ERL against rebate condition type in pricing procedure) and an accrual account (account key - ERU). The accrual account is cleared when the rebate agreement is settled with a credit memo. Working with Manual Accruals Posting accruals manually can be useful in different situations such as: Lump sum payments Accruals correction IMG setting - Agreement Type - Control data - Activate Manual accruals and maintain credit memeo request type(B4) Master data Path - Change Agreement - click Accrue - Against Customer put the anpunt to be accrued - save. This will create credit memo request (B4). The system uses this document to create a credit memo. When the credit memo is released, the accruals are posted to FI. Enter the accruals to be posted in the field beside each rebate condition record as follows: negative amount: to build accruals positive amount: to reverse accruals Setting in IMG - Activate Reverse Accruals in Agreement Type It can partially or fully settle a rebate agreement. The system uses the services rendered date (which is the billing date, if you are shipping products) to determine whether a billing document qualifies for rebate processing.

Final settlement
When you carry out final settlement of a rebate agreement, the system automatically calculates the rebate based on the sales volume statistics or the lump sum deducts any previously paid rebates It then creates a credit memo request, and proposes the end date of the agreement validity period as the billing date. You can carry out final settlement of rebate agreements automatically Manually as a background task (in batch) Carrying out Final Settlement as a Background Task If the volume of your sales rebate processing is high, you can collectively process rebate settlements as a background task. The following reports are available: RV15C001 RV15C002 Carrying out Final Settlements Prerequisite - Agreement status field in the control data of the agreement should have the same value as the MINIMUM status field in Agreement Type. Path for creating Rebate Credit Memo Request for Final settlement Agreement - Rebate payments Final settlement Automatically. NOTE a. To make changes to the credit memo request, select Rebate payments Credit Memo Request Change . To cancel a credit memo request, select Rebate payments Credit Memo Request Reset. a. To make changes to the credit memo request, select Rebate payments Credit Memo Request Change .

To cancel a credit memo request, select Rebate payments Credit Memo Request Reset. Once the Credit Memo is created and in both the cases - posted to FI or not. If there is a major change involved, you must copy the existing rebate agreement, since the rebate agreement is not reopened. You can change the copy of the rebate agreement as required and perform final settlement again.

Partial Settlement
Payments can be: limited to the cumulative accruals of the condition record limited to the amount that would be paid if final settlement were presently carried out unlimited The above settings are there in the Agreement type. You carry out partial settlement by using the manual payment screen within rebate agreement processing. The system will automatically create a credit memo request for the amounts specified. When the system carries out final settlement for a rebate agreement, it takes all partial payments into account. Periodic Partial Settlement In periodic partial settlement, you can refer to specific periods for settlement. This means that only the amount accumulated up to the settlement date is taken into account, even if partial payment is made only later. You want to carry out partial settlement for January. You know, however, that revenues will occur in February although their date of services rendered is in January. You can now carry out periodic partial settlement in the middle of February. Enter a calendar year as the settlement period with the end of each month as the settlement dates. Enter January 31 as the concrete settlement date. The revenues in February with a date of services rendered that falls in January, are included in the settlement. New revenues in February are not included. In Customizing, assign a settlement period to the rebate agreement type. When using the cross-application functions in Customizing, you can create you own calendar for periodic partial settlement. You can then maintain the possible settlement dates as work days. The settlement dates must always fall on the last day of the month. Carrying out Partial Settlement for Rebate Agreements Path for creating Rebate Credit Memo Request for Partial settlement Select Rebate Agreement - Rebate payments Pay. 1. To display payment information about an individual condition record, select the condition record and press Payment Data . 2. If you just need to pay the maximum amount for particular condition records, mark the records and select Edit Pay max. amount. The system will transfer the value from the Maximum Amount field to the Amount to be Paid field for the selectedrecords. Save the Agreement. It will create Credit memo Request of Type B3. Settling Rebate Agreements in the Background Path - SD - Billing - Rebates Rebate settlement You can also use this procedure to list certain rebate agreements without actually carrying out final settlement. In this case you only select Issue verification level as the action

Lump Sum Payments A lump sum payment is a special condition which does not depend on sales volume but on a promotional performance such as a front of store display or a local advertisement. You create a lump sum condition record within a rebate agreement following the same procedure used to create other rebate conditions. When the system asks you for the condition type, you select the condition type for lump sum. The system will not display the Accruals rate field since the record does not depend on sales volume. You will have to post accruals for lump sums manually. When you post accruals manually, you can determine the exact time when accruals should be posted and which amount. Lump sums can be settled: with the partial settlement carried out during the rebate agreement period with the final settlement carried out at the end of the rebate agreement period

Rebate Agreements A rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period.

rebate agreement imp. Details General Rebate Process

who receives the rebate payment on what criteria the rebate is based ( customer or customer/material etc ) create separate condition records for each product the customer buys specifying amount or percentage the system keeps track of all billing documents (invoices, credit and debit memos) that are relevant for rebate processing. if you wish, automatically post accruals so that the accumulated value of a rebate is recorded for accounting purposes. A rebate agreement is finally settled when you issue a credit memo to the customer for the accumulated rebate total.

Rebate Types

Rebate based on a material Rebate based on a customer Rebate based on a customer hierarchy Rebate based on a group of materials Activate Rebate control in Sales Organisation Payer ( customer master --> Sales area data --> Billing View ) Billing Type If you plan to create rebates that do not depend on a material, but instead, for example, depend only on the customer, you must create a special material master record for a settlement material.

Prerequisites for Processing Rebates

Note :

Types of Contracts Master Contract Quantity contracts Value contracts Service contracts Master Contract The master contract is a document under which you can group contracts as lower level contracts. It contains the general terms which apply for all the lower level contracts over a specified period. The link between the master and lower level contracts is controlled by the referencing procedure which is assigned to the master contract type in Customizing. The referencing procedure determines which data is copied from the master contract into the lower level contracts A master contract contains header data only. In the master contract, you can record: Business data / Partner data / Contract data / Billing plan data Contract Grouping The lower level contracts must be assigned to the same sales area as the master contract. Prerequisites ((Customizing / Sales & Distribution / Sales / Sales Doc. / Contracts) Define which sales document types can refer to which master contract types. Define referencing procedure Identical fields - value gets copied to lower-level contract and if then changed, link to Master contract gets deleted. Copy Fields - value copied to lower-level contract can not be changed Controls in Sales Document Type 1 Ref. Pricing Procedure 2 Update Lower Level contract Active - changes in Master Contract will be copied to lower-level contract immediately Not active - changes in Master Contract will be copied to lower-level contract when it is called for processing. If you have activated the check for existing master contracts in Customizing and master 3 contracts already exist for the customer, a dialog box appears. Quantity Contract (Doc. Type - CQ) (Item category - KMN) an agreement that your customer will order a certain quantity of a product from you during a specified period at a specified pricing. no schedule of specific delivery dates and quantities

(Doc. Type - GK)

Authorized Partners for Release Orders Prerequisites You activate the partner authorization check in the Customizing activity Define Sales Document Types. Partners in the contract (Rule A) If the partner has the partner function AG (sold-to party) or AA (sold-to party for release order) in the contract, the system accepts the partner as the sold-to party for the release order.

Partner determination procedure KAB (partners in contract) contains the partner functions AA - sold-to-party contract release order and AW - ship-to-party contract release order. ( Define and assign partner determination procedures). Assign this procedure to the sales document types for which the partner authorization check is relevant - e.g.KAB to CQ.

A quantity contract is complete when there are no more items to be delivered.

Value Contract

A value contract is a legal agreement with a customer that contains the materials and services that the customer receives within a specified time period, and for a value up to a specified target value. product-hierarchy / assortment, Item Category - WKN Material Related (Item Category - WKC) This function enables you to define a list of materials that can be released from a value contract. Materials can be assigned to more than one assortment module. In the value contract, only materials with the same sales organization and distribution channel as the value contract can be taken from the assortment module. Module type 6 is defined for the value contract.

(Doc. Type WK1 WK2 Assortment Module (WSO1)

A value contract is complete when you enter a reason for rejection. Controls in Item category Value Contract Material - Dummy material if exact materials are not specified in the contract. Contract release control - How system reacts (warning/error) when you have reached the target value. NOTE Contract Release Orders (Doc. Type - WA) Quantity and value contract items cannot be processed together in one document.

If you have a contract with your customer and you create a sales order without referring to the contract, you can set the system so that it proposes the contract automatically. To do this, use the settings in Customizing for document type (Contract messages field - Transaction flow section of doc. type WA))

Delivery Times/Commitment Dates in Sales Orders


A delivery time agreed with the customer in the contract or quotation. The delivery time in the contract is the time period that the customer grants the vendor from between the contract release order until the delivery arrives. You can enter delivery times at header or item level.

Delivery Time Customizing - SD / Sales / Sales Documents / Define agreed delivery times. The committed quantity is calculated from the agreed delivery time or from the confirmed Commitment Dates & Qty. quantity Csutomizing - Sales Document Type, field Committed date - CHECK scenario

Sales Documents can be categorised into -- 4 types Pre-sales documents: inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements Customer problems and complaints, leading to free-of-charge deliveries and credit memo requests Basic Functions of Sales Documents Monitoring sales transactions Checking for availability Transferring requirements to materials planning (MRP) Delivery scheduling Calculating pricing and taxes Checking credit limits Creating printed or electronically transmitted documents (confirmations and so on) Sales transactions occur within the organizational structure of sales and distribution. ( Sales Area ) Structure of Sales Doc. Type -- Header Data / Item Data / Schedule line Data

Header data
The general data that is valid for the entire document is recorded in the document header. For example, Number of the sold-to party Number of the ship-to party and the payer Document currency and exchange rate Pricing elements for the entire document Delivery date and shipping point

Item data
Whereas data in the document header applies to all items in the document, some data applies only to specific items. This data is stored at item level and includes the: Material number Target quantity for outline agreements Number of the ship-to party and the payer (an alternative ship-to party or payer can be defined for a particular item) Plant and storage location specifications Pricing elements for the individual items

Schedule line data


An item consists of one or more schedule lines. The schedule line contains all the data that is needed for a delivery. For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month so you need to schedule two deliveries. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. In sales documents where delivery data is not relevant, for example, contracts, credit and debit memo requests, the system does not create any schedule lines. Data recorded in the schedule lines includes the: Schedule line quantity Delivery date Confirmed quantity

Origin of Data in Sales Documents Data From Master Records -- Customer Master Record / Material Master Record
/ Customer - Material Info Record Data From the Customer Master Record name of the sold-to party as well as agreements for Complete Delivery and order combinations are copied from the customer master record into the document The header data here normally applies to the items as well. For example, payment terms, Incoterms, partner functions, and the delivering plant are copied from the customer master records of the business partner into the document and the items. You can change the data in each item. Data From the Material Master Record This includes data about weights, delivery priorities, as well as over- and underdelivery rules

How the System Determines the Delivering Plant Customer Master / Material Master Data From Customer-Material Information Records define the material number and the customer's description for the material as well as specific shipping data, such as delivery priority, and partial delivery specifications.

Data Determined by the System - The following data can also be defined in advance
to be determined during processing: Prices, discounts and surcharges Data for delivery scheduling Shipping point

Data from Preceding Documents


If you create a sales document with reference to a preceding document, the system copies nearly all the data from the preceding document. The data in the preceding document originally comes from the customer and material master records.

How Sales Documents are Controlled


Type of processing Sales document type Inquiry Quotation Free-ofcharge delivery Standard sales order Cash sale Rush order Quantity contract Maintenance contract Rental contract Scheduling agreement Credit memo request Debit memo request Subsequent delivery, freeof-charge Returns

Presales

IN QT FD

Sales orders

OR BV SO CQ WV MV DS

Outline agreements

Complaints

CR DR SD

RE

Controls in Sales Doc. Type in IMG

1. General Data
SD Document Category SD Document Block Item No. Increment Referance Mandetory Check Division Item Division Probablity Read InfoRecord Check Credit Limit Inquiry / Quotation / Contract / Std.Order / CMR / DMR .etc No Block / Automatic CMR allowed in Rebate processing / Doc. Type Blocked No Referance / With Referance to Inquiry / Quotation / Contract / Std.Order Reaction with no dialog / Warning / Error Division in sales order item comes from the material Master Sales Probablity
) Specifies whether the system runs credit checks and how it responds to the check during sales order processing. ( Simple Credit Check with Warning / Error / Delivery Block OR Automatic Credit control 01 for Sales Orders -- The document credit group enables you to combine different sales document types for the purposes of credit management.

Credit Group Check Purch. Order No. Check whether Purch. Order No.exists or not Activate this field if the system should enter the document number in the PO number field Enter P.O. No.

Commitment Date

Key that controls how the commitment quantities should be calculated per sales document type. The commitment date is calculated using the delivery time for releases to contracts with delivery times, or sales orders that refer to quotations containing delivery times. The committed quantity results from the agreed delivery time or the confirmed quantity, according to the calculation rule set here. A) Consider agreed delivery time B) First confirmation date C) First confirmation date for New Items entered

2. Transaction Flow
Incompletion Procedure The incompletion procedure defines a number of fields in which the user must enter information. Document Pricing Proc. Document procedure for determining pricing procedure. Alternative Sales Doc. Type Alternative sales document type that can be selected during document processing. Incomplete Messages Indicates whether you can save an incomplete Saels Documents.

3. Schedule Line Agreement


Delivery Block Delivery type for correction deliveries MRP for delivery schedule types

4. Shipping
The Delivery Type that the system automatically proposes for this type of sales document during delivery processing. Delivery Type Delivery Block
Indicates if an entire Sales Document is blocked for delivery. Specifies the Shipping conditions that apply to this type of sales document. The system proposes shipping conditions from the customer master record. The proposal from the customer master record is overwritten by the shipping conditions that you define for a particular sales document type in Customizing. The entry from Customizing is considered as a default value. If no shipping conditions are set in Customizing for the sales document type, the shipping conditions of the sold-to party are used. Example - specify different shipping conditions for- free-of-charge deliveries. This indicator controls whether a delivery should be created as soon as the order is saved.

Shipping conditions

Immediate Delivery

5. Billing
delivery-related billing doc Proposed billing type for a delivery-related billing doc order-related billing document Proposed billing type for an order-related billing document intercompany billing Proposed billing type for intercompany billing Billing Block Billing Plan Type
The system can automatically propose a billing block for sales documents that must be checked before billing (for example, returns, credit and debit memo requests). Periodic billing - the entire value to be billed is billed in full on each billing plan date. Periodic billing is used to bill rental or maintenance contracts. Milestone billing - the total value to be billed is distributed between the individual billing plan dates (the value billed on each date can be fixed amount or a percentage) Milestone billing is used to bill projects.

6. Requested Delivery Date / Pricing Date / P.O. Date


Lead time in days Date Type
Specify the number of days after the current date that the proposal for the Requested delivery date in the sales document should be.

Day / Week / Month / Posting Date Proposed pricing date based on today's Date / the requested dlv.date / Valid from Date / Proposed pricing date Contract Start Date Specify the ID for the date which the system should propose for the valid-from date when, for Proposed valid-from dateexample, you enter a quotation. Propose Delivery Date Indicates whether the system automatically proposes the current date as the Delivery Date Propose P.O. Date Specifies whether the system automatically proposes the current date as the purchase order date.

7. Contract
Pricing Procedure Condition At Hearder / Item Level Contract Profile Profile with default values for contract data Billing Request Order type for request for billing
Whether you can enter contract data for a sales document of this type. How changes made in the contract header affect the contract item data. enter which type of sales activity is to be created when a sales activity is defined as the follow-up action for a contract of this sales document type. Create follow-up activity worklist for rental contracts by choosing Outline agreement -> Contract -> Subsequent functions -> Follow-up actions and maintaining Follow up Activity Type the selection criteria as required. Enter an order type in this field if you want the system to propose a follow-up order type automatically Subsequent Order Type within subsequent processing. Check Partner Authorisation This check determines whether a partner is authorized to release against a contract.

Contract Data Allowed

Activate this field if you want all lower level contracts to be updated when you change a master contract of this sales document type. Update lower level contract

Common Features in Sales Order Processing


Sales Summary Making Fast Changes Reference status Entering Dunning Data in a Sales Document Displaying Changes Made in a Sales Document Combining Sales Document Items for Delivery Processing Billing Plans Additional Data Rejecting Items in a Sales Order Assigning Contracts Changing the Sold-to Party Changing Sales Document Type

Customer Inquiries Doc. Type IN Category AGN Sch.line Cat AT

A customers request to a company that they provide a quotation or sales information without obligation. An inquiry can relate to materials or services, conditions and if necessary delivery dates. Item The total quantity of an inquiry item can be subdivided between the schedule lines in different amounts and relevant delivery dates.

Customer Quotation A quotation presents the customer with a legally binding offer for delivering a product or providing a service Doc. Type QT Item within certain fixed conditions. This offer is legally binding for the company within a specified time period. Category AFN Sch.line Cat BN / BP

Alternative Items

alternative items used in inquiries and quotations. Enter the item number of the alternative item. If you copy a quotation into a sales order, the system only copies alternative items that you mark for copying in the selection list. When you create a sales query, you may want to know: What is the probability that the customer will buy from me? The system calculates the probability from master data that can be defined for the sales document type and for specific customers. The estimate is expressed as a percentage. Based on the resulting probability, the system calculates an expected order value and displays it in the top section of the double-line entry overview screen. You can then generate a list of quotations or inquiries in such a way that sales queries with the highest probability of being confirmed are listed first.

Order Probability

In the contract, the delivery time fixes the time period that the customer has given the vendor between contract release and delivery receipt. Delivery Times In quotations, the delivery times enables you to agree on a guaranteed maximum delivery time once the order has been entered. In the sales order, a committed quantity and date are issued alongside the confirmed quantity calculated by the availability check, which enables you to see whether committed quantities and delivery dates have been complied with. configure possible delivery times in Customizing by going to Sales and Distribution Sales Sales Documents Define agreed delivery times .
Key that controls how the commitment quantities should be calculated per sales document type. The commitment date is calculated using the delivery time for releases to contracts with delivery times, or sales orders that refer to quotations containing delivery times. The committed quantity results from the agreed delivery time or the confirmed quantity, according to the calculation rule set here. A) Consider agreed delivery time B) First confirmation date C) First confirmation date for New Items entered

Commitment Date

Free Goods Processing

Pricing of Free Goods

Constraints

Creating Sales Orders With Free Goods Items


Free goods are discounts in the form of goods delivered free of charge. A free good can be subordinated to another item or it can be a main item in its own right. If you enter a sub-item in a standard sales order, the system treats it automatically as a free good, providing that the corresponding material has the item category group NORM.

To enter a free good as a sub-item, proceed as follows: 1. Enter the material number of the free goods directly under the higher-level item. 2. In the second entry line, in the HgLvIt field (higher-level item), enter the item number of the higher-level item 3. Choose Enter . If an availability check determines that stocks are insufficient, the system displays a screen containing delivery proposals. the system automatically assigns the item category TANN to the free goods item. Changing the Quantity of a Higher-Level Item If you subsequently change the quantity of a main item, the system automatically adjusts the quantity of the subordinate free goods item in proportion. However, if you want to prevent this, proceed as follows: 1. Select the free goods item in the overview screen and choose Goto Item More functions Structure. 2. Select the Fix indicator next to the UoM field. If you change the quantity of the main item, the quantity of the free goods now remains fixed. Entering a Free Goods as a Main Item If you want to enter a free goods item as a main item, change the proposed main item type TAN to TANN. use automatic free goods determination. Inclusive / Exclusive agreement Inclusive - The customer only pays for a part of the goods required. The rest of the goods are free. This is called Inclusive free goods and means that part of the purchase quantity is designated as free goods and is not billed. Exclusive - The customer pays for the goods ordered and receives additional goods. This is known as exclusive free goods and means that free goods is granted for an additional quantity to that in the purchase order. More is delivered than was ordered and the additional quantity is not billed. The condition is maintained as Logistics --> SD --> Master Data --> Conditions --> Free Goods ( VBN1 Transaction ) for Customer / Material Level. The free goods agreement has a validity period. In the free goods agreement you can save different rules for determining the free goods quantity. You can determine a minimum amount for the sold material. The free goods only then apply from this minimum amount. The free goods quantity can be defined proportionally to the quantity of the material sold. When creating the sales order, the free goods items are created automatically according to free goods agreement. The free goods are represented as an item. The free goods item is a subitem of the originating item. The free goods items are relevant for delivery and are copied to the delivery. The free goods item can be copied to the billing document. It is possible to have the free goods in the invoice as free of charge items. In the sales order and in the billing document, pricing can be carried out for a free goods item. An automatic discount of 100 percent at the end of pricing ensures that the item is free of charge. This facilitates representation in the statistics and in the Profit Analysis. The free goods can be represented there not only as manufacturing costs but also as a special type of sales deduction. Free goods is currently only supported on a 1:1 basis. This means that an order item can only be the source of one free goods item. This means that agreements involving relationships such as 'Buy material 1 and get material 2 and material 3 free of charge' or 'Order material 1 and material 2 together and get material 3 free of charge' are not supported. Free goods is not currently supported in combination with material structures (e.g. product selection, bills of material, variants with BOM explosion)., for deliveries without reference to a sales order, for make-to-order production, thirdparty order processing and scheduling agreements.

Free goods is currently only supported for sales orders with document category C (not for quotations, for example).

Define Item Category Assign Item Category Sales Doc. Type / Item Category Group / Usage / Higher Level Item Category / Item Category

AFN AGN TAN AFNN AGNN TANN AFX AGX TAX AFTX AGTX TATX BVN

Standard Item

NLC NLN NLRN KMN TAB TAS REN G2N L2N KBN KEN KAN KRN TAD

Inter company Stock Tr. Item Std. Stock Tr. Item Returns Std. Stock Tr. Item Quantity Contract Item Individual Purchase Order Third Party Item Returns Item Credit Memo Request Item Debit Momo Request Item Consignment Fill-Up Consignment Issue Consignment Pick-Up Consignment Returns Service Item

Free of Charge Item

Non Stock Item

Text Item

Cash Sales

Controls Of Item Category Item Type Prcing Std. Item / Text item / Packaging Item For Std. Item / Free good Item
The system uses the completion rule to determine the status of a quotation or contract that has been referenced by other documents (by subsequent sales orders, for example). If you want the system to apply the completion rule, you must first select the Update document flow field in document flow control in SD Customizing using the following menu path: Sales and Distribution --> Sales --> Maintain copy control for sales documents --> Copy control: Sales document to sales document (at item level).

Completion rule for quotation / contract

Schedule line Category Business Data Item Relevent For Billing Incompletion proceture Partner Determination Proc. Automatic Batch Determination Item Related for Delivery Wt. / Volume relevent Credit Active

Allowed / Not allowed General business data at item level, deviate from those at header level Order related Billing / Delivery related billing etc. Which fields are relevant for the incompletion log? Which Partner Functions are allowed and which are mandatory. Active / Not Active Active / Not Active Active / Not Active Active / Not Active
The system checks the cost determination indicator as a requirement before applying the Condition Type that calculates the cost (condition type VPRS

Determine Cost Form delivery group with one delivery date - Fordelivery of different items in a sales order on a same date Delivery group with correlated schedule lines - If no complete delivery is required, as soon as all the items in a bill of material are available, the system creates a correlated schedule line Billing Block Reason for Blocking Should a system message appear if the item cannot be fully delivered? Create Delivery Group

company Stock Tr. Item

urns Std. Stock Tr. Item ntity Contract Item vidual Purchase Order

dit Memo Request Item t Momo Request Item

signment Pick-Up signment Returns

Cash Sales

Cash sales is an order type for when the customer orders, picks up and pays for the goods immediately. The delivery is processed as soon as the order has been entered. A cash invoice can be printed immediately from the order and billing is related to the order. Receivables do not occur for the customer as they do for rush or standard orders, because the invoice amount is posted directly to a cash account. ( Sales Doc. Type BV / Delivery Type BV / Billing Type BV ) The invoice papers are controlled with output type RD03, contained in the output determination procedure for order type BV. Create the order and save it. If the system carries out an availability check and finds that there is insufficient stock for an order item to be delivered on the requested date, it displays a screen on which you can choose between several delivery proposals. Normally, in a cash sale, you only sell the quantity you can deliver on the spot. Save your document. The system automatically processes the delivery in the background and prints out a cash sale invoice. The amount of the sale is processed later in an order-related billing transaction. The amount is posted to financial accounting, using the order number as reference. Because this is a cash sale, no invoice is produced during the billing run. In a rush order transaction, the customer picks up the goods or you deliver the goods on the same day as the order is placed. In the standard system, when you save this sales document type, a delivery is automatically created and billing is related to the delivery. Once the billing documents are created (for example, in collective processing), invoice papers are printed and sent to the customer. ( Sales Doc. Type SO / Delivery Type LF / Billing Type ) 1. If, during the availability check, the system confirms only a part of the requested order quantity, the remaining quantity can be processed at a later point in time as a backorder. The rush order can be processed later as a delivery-related billing transaction. Billing is performed in the usual way.

Process in Cash sales

Rush Order

Define Schedule Line Category Assign Schedule Line Category Schedule line Category Description Item Category / MRP Type / Schedule Line Category Schedule Transfer of Availability Item Movemen Order Type line allowed Requirement Check related to t Tpye for ( In Item Delivery Purchasing Category ) Yes Yes Yes Yes Yes Yes No No Yes No No No No No Yes No No No No No / Yes No / Yes Yes No Yes NA NA / 601 NA / 601 NA / 651 NA 601 Item Category for Purchasing Purchase requisition with delivery scheduling Note : A : for Inquiry B : for Quotation C : for Order D : for Returns NB NB 5 0 No Yes

AT BN / CN BP / CP DN CS CB

Inquiry ( AFN ) Quotation ( AGN ) / Sales Order ( TAN ) Quotation ( AGN ) / Sales Order ( TAN ) Returns order ( REN ) third Party Order ( TAS ) Individual Purch. Ord.( TAB )

BT / CT CX

No stocks are managed for the schedule line categories BT, CT and CX. No goods issue is posted for the categories BT and CT. However, goods issue is posted for CX. The schedule line categories BV and CV are controlled in the same manner as the categories BN and CN. However, requirements can be passed on for analysis purposes.

BV / CV

Controls of Schedule Line Category Which fields are relevant for the incompletion log? Should a customer requirement be reported to purchasing or production depends on MRP type which assigned to Schedule line category Should a delivery block be set automatically for the schedule line? A delivery block is appropriate for free of charge deliveries.

An outbound delivery can be created as follows: With reference to a sales order With reference to a stock transport order With reference to a subcontract order Without any reference Complete Delivery Indicator You can make agreements with your customers for Complete & Partial deliveries and for Order combination Customer master record --> Sales area data --> Shipping data ( The indicator is copied into the order header ) Order header -- indicator X in the Delivery field on the business data screen of the order header.

Partial Delivery Indicator Customer master record Customer-material information record Order item Maximum Number of Partial Deliveries Maintain indicator in Customer master --> Sales area data --> shipping data Order Combination The orders or the order items and schedule lines must have identical shipping criteria Shipping point Ship-to party Incoterms Sales organization Indicators to be set in customer master record --> Sales area data --> shipping data specify manually that individual orders --> Header --> Shipping tab --> Order Header Grouping Outbound Deliveries You can combine outbound deliveries into groups. An outbound delivery can belong to several groups. You can create grouped outbound deliveries manually. When you process a delivery due list, the system combines all the outbound deliveries that it creates into one group Create Group --> Shipping --> Outbound delivery --> group of Outbound delivery --> Create

Creating Outbound Deliveries


As soon as the material availability date or the transportation scheduling date for a schedule line is reached, the schedule line becomes due for shipping A delivery is processed through one shipping point

Prerequisites for Processing Deliveries in Sales Orders


Header level There cannot be a delivery block at header level. A delivery block on the header level only works when it has been assigned to the appropriate delivery type in Customzing. 1) If customer exceeds credit limit 2) If put delivery block manually at header level The sales document must contain at least one item due for delivery before a delivery can be created for this document. Item Level and Schedule Line Level The schedule line must be due for shipping on the specified selection date. A schedule line becomes due for shipping as soon as the material availability date or the transportation scheduling date is reached. The schedule line cannot be blocked for delivery. ( e.g. free of charge delivery ) The delivery quantity must be greater than one. The items in the order must be fully processed. The product status of the material must permit delivery.

Process Flow
Updating Delivery Status in Sales Orders -- Header & Item level Shipping Point Determination shipping conditions from the customer master record (Shipping screen) The loading group from the material master record (Sales/Plant Data screen) The delivering plant -- From Material master / Customer master / Customer-Material Info record. Route Determination Criteria for Route Proposal in the Sales Order - At each item Country and departure zone of the shipping point Shipping condition from the sales order Transportation group from the material master record (Sales/Plant Data screen) Country and transportation zone of the ship-to party (Control screen in the customer master record)

Criteria for the Proposal of the Route in the Delivery -- At Header level Transportation and Delivery Scheduling Backward Delivery Scheduling Only Free Goods in the Outbound Delivery

Subsequent Outbound Delivery Split


Picking Packing PGI

Special Functions in Shipping

Delivery Types LF -- Outbound delivery LO -- Delivery w/o Ref. LR -- Returns Delivery NL -- Replenishment Dlv. NLCC -- Replen.Cross-company NLR -- Ret.stock transp.ord NCR -- Ret.StTranspOrd CC RL -- Returns (pur.ord.)

Define Item Category for Delivery Determination of Item Category for Delivery Item category TAN DLN TANN KLN KLX TATX KBN TAK Del. Type / Item Cat.Froup / Usage / Higher Level / Item Category

Name Standard item (from standard order) Standard item in a delivery without reference to an order Free of charge item (from standard order) Free of charge item (part of a delivery that is free of charge) Service free of charge (part of a delivery that is free of charge) Text item (from standard order) Consignment fill-up Make-to-order production (from standard order)

Material number zero allowed Check Quantity 0 Check Minimum Qty.

Controls whether it makes sense to enter an item in the SD document with this item category without specifying a material. It would make sense to set this indicator for text items. Specifies whether you can create an item that has a zero quantity and, if you do, how the system reacts. Specifies whether the system checks the minimum delivery quantity, and, if so, determines how the system reacts if the minimum is not met. Specify Min.del.Qty. in Customer-Material Info record / Material Master Sales Org.1 View Specifies how the system reacts when, during delivery processing, you exceed the original order quantity. specified an overdelivery limit in the sales order ( Item /shippping ) Picked from Customer master OR in the CustomerMaterial Info Record ( VD51 ) Active / Not Active Active / Not Active Active / Not Active Active / Not Active Active / Not Active Active / Not Active Switch on / Switch OFF In the case where items must be packed, they must be processed for packing before goods issue. Delivery Item Category / indicator POD relevent Indicator in Customer master Shipping data Menupath -> Logistics->Logistics execution->Outbound process->Goods issue for Outbound delivery-> Proof of Delivery Transaction - VLPODLWorklist outbound deliveries for POD.

Check Over Delivery

Relevent For Picking St.Loc Required Determine St.Loc Don't Check St.Loc No Batch Check Automatic Batch Determination Availability Check Packing Control Proof Of Delivery

Define Item Category for Delivery Determination of Item Category for Delivery

Item category TAN DLN TANN KLN KLX TATX KBN TAK

Material number zero allowed Check Quantity 0 Check Minimum Qty.

Check Over Delivery

Relevent For Picking St.Loc Required Determine St.Loc Don't Check St.Loc No Batch Check Automatic Batch Determination Availability Check Packing Control Proof Of Delivery

Del. Type / Item Cat.Froup / Usage / Higher Level / Item Category

Name Standard item (from standard order) Standard item in a delivery without reference to an order Free of charge item (from standard order) Free of charge item (part of a delivery that is free of charge) Service free of charge (part of a delivery that is free of charge) Text item (from standard order) Consignment fill-up Make-to-order production (from standard order)

Controls whether it makes sense to enter an item in the SD document with this item category without specifying a material. It would make sense to set this indicator for text items. Specifies whether you can create an item that has a zero quantity and, if you do, how the system reacts. Specifies whether the system checks the minimum delivery quantity, and, if so, determines how the system reacts if the minimum is not met. Specify Min.del.Qty. in Customer-Material Info record / Material Master Sales Org.1 View Specifies how the system reacts when, during delivery processing, you exceed the original order quantity. specified an overdelivery limit in the sales order ( Item /shippping ) Picked from Customer master OR in the Customer-Material Info Record ( VD51 ) Active / Not Active Active Active Active Active Active / / / / / Not Active Not Active Not Active Not Active Not Active

Switch on / Switch OFF In the case where items must be packed, they must be processed for packing before goods issue. Delivery Item Category / indicator POD relevent Indicator in Customer master Shipping data Menupath -> Logistics->Logistics execution->Outbound process->Goods issue for Outbound delivery-> Proof of Delivery Transaction - VLPODLWorklist outbound deliveries for POD.

Functions of Billing Creation of: Invoices based on deliveries or services Issue credit and debit memos Pro forma invoices Cancel billing transactions Comprehensive pricing functions Issue rebates Transfer billing data to Financial Accounting (FI)

Billing Types B1 Rebate Credit Memo B2 Rebate Correction B3 Rebate Part Settlmnt B4 Rebate Manual Accrls F1 Invoice (F1) F2 Invoice(F2) F5 Pro Forma for Order F8 Pro Forma Inv f Dlv CR Credit Memo L2 Debit Memo RE Credit memo for returns S1 Cancellation invoice S2 Cancellation credit memo

IDOC:
IDOC is a container that can be used to exchange data between any two process. Each iDoc is assigned a unique number for tracking and future reference. iDoc Consist of several segments,and segments contain several fields. iDoc contains the following three type of records... 1.One Control Record. 2.One or many Data Record 3.One or many Status record.

PORT: Port is used in the outbound process to determine the name of the EDI subsystem program, the directory path where the idoc file will be created at the operating system level,the idoc file names and the rfc desinations. RFC Destination: Used to define the characteristics of communication links to a remote system on which a functions needs to be executed. Partner Profile: Partner profile specified the various componets used in an outbound process ( Partner number,IDoc type,message type,Port,Process code),the mode in which it communicates with the subsystem(batch or immediate) and the person to be notified in case of errors. Message Control Used in pricing,account determination,material determination,and output determination.The message control component Process: Setup RFC destinations SM59 Port Destinations WE21 Partner Profile WE20 Message control NACE Purchase Order ME21 Check IDOCs WE02,WE05

The IDoc type indicates the SAP format that is to be used to interpret the data of a business transaction. An IDoc type consists of the following components:

a control record This is identical for each IDoc type.

several data records One data record consists of a fixed key part and a variable data part. The data part is interpreted using segments, which differ dependin several status records

These are identical for each IDoc type and describe the statuses an IDoc has already passed through or the status an IDoc has a

There are three main aims behind the use of IDocs:


The structured exchange of business documents so that they can be processed automatically.

The various degrees of structural complexity as displayed by different application systems can be reduced to a structure which is as simple a IDocs allow for extensive exception handling before the data are posted to the application.

Example: the structure of an SAP application document and the structure of the corresponding EDI message under the UN/EDIFACT standar

IDocs are defined and considered on two levels, the technical and the business level. The former allows them to support a
Technical level Defined by the three record types compatible with the IDoc interface: Control record Data record Status record

Business level Defined by the segments of an IDoc. Segments are structures used to interpret field SDATA in the data record. An IDoc type is defined by t Segments Attributes of these segments (e.g. maximum usage, hierarchical sequence, segment status)

functions needs to be executed.

The message control component enables you to encapsulate business rules with out having to write abap programs.

sing segments, which differ depending on the IDoc type selected.

through or the status an IDoc has attained.

uced to a structure which is as simple as possible.

essage under the UN/EDIFACT standard.

e former allows them to support application-independent functions, e.g. routing and handling technical exceptions.

ta record. An IDoc type is defined by the relevant:

rite abap programs.