ASNEAKPEEKTHR

OUGHTHE

BOOK Thisbookisstructuredinthe
1. Stepbystepproceduretoconfigurethesystem(EnterpriseDefinitions,Enterpriseassignments,Miscellaneoussetupetc)after
followingway:
installingtheSAPsoftwaresothatyoucanstartworkinginSAPSDwithoutanyerror.
2. StepbystepproceduretomaintainalltherelevantMasterDataandPricing.
3. SetupallmandatoryDeterminations.
4. Demonstratethefullsalestransactions.
5. SetuprelatedoptionalfeaturessuchasLeanWarehouseManagement,BillOfMaterials(BOM),NumberRangesetc.

AlltheaboveareexplainedwiththehelpofSAPSDscreenshotsexplainingalltherelevantfieldsineachscreen.
Aftercompletingthisbook,youwillbereadytoexploreadvancedfeaturesofSAPSD.Afewareasofthebookareshownbelowtoget
anideahowthisbookiswritten.
Note:SAPscreenshotsareshownonlyinthebook.
Page39ofthebook:

EnterpriseAssignment
Inthischapter,wewillassignalltheenterpriseunitsthatwedefinedintheEnterpriseDefinition.

EnterpriseAssignmentinapictorialview.


Fig:121
Howtosetuptheaboveenterpriseassignmentsareexplainedinthebook:

(referbookformoredetails)

Page:45(underEnterpriseAssignment):
AssignSalesAreastoBusinessAreas[OVF0/OVF1]
Business Areas are defined and used for taking internal reports and they can be mapped to separate accounts in finance for
evaluationofsalesbasedoneachBusinessarea.
Note:Fortakingexternalreports(forexample,balancesheetsforlegalpurposes),CompanyCodeisused.
Business Area usage is not a mandatory requirement by law, but it is a mandatory requirement for SAP SD to work. You cannot
maintainsalesordersifBusinessAreasarenotsetupproperly.
BusinessAreaisdeterminedbythesysteminsalesordersforeachlineitem.Thisdeterminationisbasedonassigningaruletoa
combinationofSalesorganisation,distributionchannelanddivisioninwhichwemakesalesorders.Thedeterminedbusinessarea
canbeseeninaccountingdocument.
ForallthecombinationsofSalesOrganisation,DistributionChannelandDivision,youmustassignaruleforhowthebusinessareais
tobedeterminedbythesystemwhensalesorderiscreated.Threerulesareavailabletoselectfrom.Theyare:
1.Businessareadeterminationby(Plant+Division)Rule1.
2.BusinessareadeterminationbySalesAreaRule2
3.Businessareadeterminationby(salesorganisation+distributionchannel+itemdivision)Rule3.
Hence,firstassignrulesforBusinessAreasasfollows[OVF2]:
Letusassignrule1foroursalesareaSO1+DC+D1asfollows.

(referbookformoredetails)

Page:49(underMiscellaneousSetUp):


Attributesofmaterial[OMS2].
Twoattributesofmaterialaremaintainedinthissession.Theseattributesaretobemaintainedbeforecreatingmaterialmasters.They
are:
1Attributeof'MaterialType'
2.Attributeof'Quantity/ValueUpdateofMaterials'.
1.AttributeofMaterialType.
Inadditiontootherdata,MaterialTypeisusedwhilecreatingmaterialmaster.
Almost all Material Types are already defined in SAP system. A few examples are FERT( Finished Product), FRIP( Perishable),
ERSA(SpareParts),HAWA(TradingGoods)etc.
Attributesof material Type controls many features while creating material master. Refer Material Master Data[MM01] in the chapter
MasterData.
LetusgotothesessionDefineAttributesofMaterialTypes.
DefineAttributesofMaterialTypes[OMS2].
(referbookformoredetails)

Page:70(underMasterData):
SomeoftheimportantfieldsinBillingDocumentType(BDT)areexplainedhere:
NumberRange:
BillingDocumentusesonlyinternalnumbering.Itismaintainedthroughthesession[VN01].
PostingBlock:
Itisanimportantfield.Ifmarked,whilesavingtheBillingDocument,theAccountingDocumentwillnotbegenerated.Insuchcase,you
can manually generate accounting document from the billing document by going to Toolbar Billing Document Release To
Accounting.
Documenttype:
Thisisalsoanimportantfield.
Here you assign the Accounting Document Type [OBA7]. If no Accounting Document Type (ADT) is assigned, system takes the
AccountingDocumentTypeRVbydefault.NumberrangeforADTismaintainedthrough[FBN1].YoucanseetheADTinAccounting
OverviewoftheBillingDocument.
AccountDeterminationProcedure:
Itisanimportantfieldandisusedforaccountdetermination.
ThisAccountDeterminationProcedurelinkstheAccountDeterminationType,Chartofaccount,SalesOrganisation,AccountKeyand
G/L Account. Hence, for Account Determination Procedure linked here, there must be valid G/L account numbers defined and
assignedforcreatingaccountingdocuments.
ReferAccountDeterminationlaterinthisbookformoredetails.
ThefollowingfieldsinBDTintegrateSDwithFinance:
1.PostingBlock
2.DocumentType(=AccountingDocumentType)
3.AccountDeterminationProcedure

(referbookformoredetails)

Page:74(underMasterData):
OrderItemCategory[VOV7]
Therearetwotypesofitemcategoriesandhencetodifferentiatethem,wewilluseOICforOrderItemCategoryandDICforDelivery
ItemCategory.Forsimplicity,SAP uses the simple term 'Item Category' for OIC. But in this book, we will use the term ' Order Item

Category'(OIC)insteadofjustmentioningas'ItemCategory'.
OICisusedinSalesDocumentsandDICisusedinDeliveryDocuments.
OIC is a controlling document which controls certain features of the sales document lines(Items). It specifies for the line material
whetherPricingisapplicable,Deliveryisapplicable,Costingistobedone,BreakdowntobedoneinthecaseofBOMetc.Inthecase
ofservicecontract,itspecifiesthereferencematerialforservicecontract.
OrderItem Categories are automatically determined by the system while creating sales documents. This selection is based on the
Order Item Category Determination. Refer Item Category Determination in the chapter Determination. Order Item category in SO
decidestheScheduleLineCategoryofthesameSOline.ReferDeterminationOfScheduleLineCategory.

FieldexplanationsinOIC:

(referbookformoredetails)

ScheduleLineAllowed:
Ifthischeckboxisnotselected,youcannotenterquantityinthesalesdocument.
ScheduleLinesarecreatedforsalesordersandnotfordeliverydocuments.
Thisisthefieldwhichdecideswhetherphysicaldeliveryisapplicableforthesalesorderlinesornot.Ifmarked,theschedulelineis
createdforsalesorderslines(Items)andcanbeapplicabletodelivery.Butevenifschedulelineiscreatedforasalesorderline,the
SLClinkedintheschedulelinefinallydecideswhetherthedeliveryisapplicableornot.YoucanseetheschedulelinesandSLCafter
creatingthesalesorderandselectingGotoItemSchedulelines.
ThefieldsItemrelevantfordelivery,MovementTypeetc.oftheSLCcontrolthedeliverylinecreationinthedeliverydocument.
Itemsthatarenotrelevantfordelivery,suchasitemsincontracts(eg:OICKMN)andcreditmemorequests,donothaveschedule
lines.ExceptTextItems,itemsthatarenotmarkedinthisfieldcannotbecopiedintoadelivery.
ItemRelevantfordelivery:
Thisfieldisapplicablefortextandvalueitemsonly(ItemtypeAandB)forwhichschedulelineswillnotbeapplicable.Thisfieldcan
notbemarkedforstandarditems.Cataloguesofaproduct,warninginstructionprintouts,stickers,labelsetccanbeconsideredastext
items because normally stocks for such items are not controlled. Material master are not created for them. In the sales order line,
detailsareenteredindescriptionfieldofthesalesorderlinewithoutorderquantity.YoucanusethefieldUsageintheitemcategory
determinationinthiscase.Fortextitemtypes,schedulelineswillnotbecreated.
Hence,ifthisfieldismarked,systemcopiesitemdirectlyfromSalesDocumenttoDeliveryDocumentwithoutaschedulelinecreated
forsalesorderline.ReferOICTATXforSalesorderandAFTXforSalesInquiries.
(referbookformoredetails)

Page:79(underMasterData):
DeliveryItemCategory(DIC).
PleasenotethatDIC(DeliveryItemCategory)isdifferentfromOIC(OrderItemCategory).TcodeforDICis0VLPandTcodeforOICis
VOV7.
ThecodeofOICandDICshouldbesame.Hence,whenyoucreateanewOIC,aDICisalsocreatedautomaticallywiththesame
name.Forexample,whenyoucreateanewOrderItemCategoryZTANthroughTcodeVOV7,anewDeliveryItemCategoryZTANis
alsocreatedautomatically.Normally,anewOICiscreatedbycopyingfrom an existing OIC, and hence even Order Item Category
DeterminationandDeliveryItemCategoryDeterminationarecopied.
YoucannotcreateaDICdirectlyin[0VLP]ifthesamecodeisnotavailableinOIC.ButyoucandeleteanexistingDIC,whichcreatesa
lotoffussinthesystem.
AnitemcategoryismandatoryforallSalesDocumentlinesandDeliveryDocumentlines.
IfDeliveryiscreatedwithreferencetoasalesorder,codeoftheDICindeliverydocumentwillbethecodeofOICofsalesorder.Butif
you want to add one more line manually to this delivery document, a new DIC will be picked as per the Delivery Item Category
determination[0184].
Forexample,DICisneededifyouwanttoaddpackingmaterialsinadeliverydocumentmanually.Similarlyifadeliveryiscreated
manuallywithoutanyorderreference,youneedtosetupDIC.

(referbookformoredetails)

Page130(underPricing):
Introductiontopricing.
Aftersettinguptheenterprisestructureandcreatingallneededmasterdata,youcansetupPricing.
PricingistheheartofSDandhence,youmustunderstandthoroughlythefundamentalsofthepricing.SAPusesConditionTechnique
forhandlingthepricing.
WhilecreatingSalesDocuments,systemselectsautomaticallyaPricingProcedurebasedonthePricingProcedureDeterminationset
upinthesystem.PricingProcedurecontainsaseriesofPriceConditionTypes(PCT)forallthepricingelementssuchasonePricing
ConditionTypeforbasicprice,anotherPriceConditionTypefordiscounts,anotherPriceConditionTypeforrebate,anotheronefortax
etc.PricingvaluesarerecordedagainsteachPriceConditionTypes.CertainPCTscanbesetasmandatory(forexample,basicprice)
sothatbeforecreatingsalesorderitself,thepricerecordsshouldhavebeenenteredagainstsuchPCTs.Whilecreatingsalesorder,
systemwillpickuppricingvaluesagainsteachConditionTypesforeachline(Item)andthenetpricewillbecalculatedfortheentire
salesorder.
For each PCTs, you can enter different pricing values based on various options and system should choose one value for each
conditiontypeandthesamewillbeassignedtothesalesorderlines.Systemshouldchooseonlyonevaluewhichitfindsintheorder
ofsequencementionedintheAccessSequence.Forexample,youcanenteronevaluebasedonacombinationofthecustomerand
materialandanthervaluebasedonjustmaterial.Ifthemorespecificvalueisfound(basedoncustomerandmaterial)systemshould
takethatvalueandaddtothesalesorderline.Ifthisspecificvalueisnotfound,systemshouldsearchforthegeneralvalueandthe
sameshouldbeaddedtothesalesorderline.ThissearchsequenceisbasedontheSequencessetupinthesystem.Becausepricing
valuesareselectedbasedonsomeconditions,thismethodiscalledaConditionTechnique.ConditionTechniqueisusedinmany
areasinSAP.
Also,youcanindicateagainsteachConditionTypewhetherthevalueistobeenteredmanuallyinsalesorderwhetheratleastone
valuetobesetupcompulsorilythevalueenteredisonlyforstatisticalpurpose(nottonetinthesalesorderpricing),etc.
YoucanmentionseparateaccountkeytodetermineuniqueG/Laccountforpostingofthesepricevalues.
ProcedureforsettingPricing:
1.CreateConditionTableswiththerequiredfields[V/03]
2.CreateAccessSequenceandassignConditionTablestoit[V/07]
3.CreateConditionTypeandassignAccessSequencetoit[V/06].
4.CreatePricingProcedureandassignConditionTypestoit[V/08]
5.CreateConditionRecords[VK11]
6.SetupPricingProcedureDetermination[OVKK].ThiswillbeexplainedintheDeterminationchapter.
Eachprocess is explained in detail in this chapter (except the Pricing Procedure Determination, which is explained in the chapter
Determination).
LetusexplainaboutthePricingProcedureZ00001thatwearegoingtocreatelaterinthischapter.
Thestepbystepproceduretosetpricingprocedureisexplainedinthebook.

(referbookformoredetails)

Page:155(underthechapterDetermination):
DeliveryItemCatDetermination[0184].

IfDeliveryDocumentiscreatedwithreferencetoaSalesOrder,codeoftheDICindeliverydocumentwillbethecodeofOICofsales
order.Butifyouwanttoaddonemorelinesmanuallytothisdeliverydocument,thenewDICwillbepickedaspertheDeliveryItem
Categorydetermination[0184].
WhenyoucreateOrderItemCategory(OIC)bycopyingfromanotherOIC,theDICandDICDeterminationarealsocreated.Anyway,
pleasecheckupwhethertheDICDeterminationisavailableinthesystem.Otherwise,youmustsetupDICDeterminationsfor your
DDTs.
DeliveryItemCategoryDeterminaionmustbesetupifanadditionaldeliverylineistobeaddeddirectlyintheDeliveryDocument.For
example,youmayhavetoaddpackingmaterialinthedeliverydocumentmanually.

AlsoDICisneededwhenyoumakedeliverydocumentwithoutanyorderreference,forexampleforreturningofgoodstothesupplier.
ReferDeliveryDocumentType[0VLP]inthechapter'MasterData'formoredetails.

[0184]DICDetermination
DDT

ICG

Usg

HLDIC

DIC

LF

NORM

DLN

Fig:43
Path:IMGLogisticsExecutionShippingDeliveriesDefineItemCategoryDeterminationinDeliveries.
Fields:(DDT)(ItemCatGroupfromMaterial)(somefreetextasUsage)(HigherLevelDIC)(DIC).
TheUsageandHLDICarenotusedinnormalcases.ReferOICdeterminationformoredetails.
(referbookformoredetails)

Page:162(underDetermination):
AccountDetermination[VKOA]
AccountdeterminationisamandatorysetuprequiredforcalculatingPrices.TheAccountKeysareenteredinPricingProcedureand
the G/L account numbers are linked to those keys through Account Determination Procedure here. This Account Determination
ProcedureislinkedinBDT.
Followingaretheprocedurestobefollowedtosetupaccountdetermination:
1.MaintainAccountAccessSequenceandlinkexistingAccountConditionTablestoit.
2.DefineAccountConditionTypeandlinktheAccessSequencetoit.
3.DefineAccountDeterminationProcedureandlinkAccountConditionTypestoitwithstandardrequirements
4.AssignG/LaccountstoAccountConditionTypesandAccountKeys
5.LinkAccountDeterminationProceduretoADT.
Thestepbystepproceduretosetupaccountdeterminationisexplainedinthebook.
(referbookformoredetails)

Page:172(underSalesTransaction):
Asalesdocumentcomprisesthreelevels.Theyare:
1.SalesDocumentheader
DataforSalesDocumentheaderisvalidfortheentiredocument
2.SaleDocumentLines.
Eachline(Item)inthesalesdocumenthasitsowndata.
3.ScheduleLinesforsalesorderlines.
ItcontainsDeliveryDate,Deliveryquantity,ScheduleLineCategory,Deliveryblockingdetailsetc.

NowletuscreateaSalesOrder.
Note: Before creating sales orders, please make sure that you have made all the following mandatory setups( Refer the chapter
Determinationsformoredetails)
1.Mandatory determinations especially Shipping Point determination[OVL2], Account Determination[VKOA] and Pricing
ProcedureDeterminations[OVKK]
2.MandatoryPricingrecords[VK11]
3.Periodsareclosedtillthecurrentperiod[OMSY]&[MMPV]
4.Sufficientstockisavailableforthematerials[MB1C]and[MMBE]
5.Numberrangesaremaintainedforaccountingdocumentsandstocks[FBN1]

(Periodclosing,StockcreationandNumberrangesareexplainedinAppendix).
(referbookformoredetails)

Page:220(underAppendix):
BOMProcessinSD.
InSAP,wecreateBOMs(BillOfMaterials)separatelyforseparatepurposes.BOMcanbecreatedinSDonlyforsalespurposes.BOM
Usage5isusedforthesame.Forproduction,BOMUsageis1andforCosting,itis6.SeebelowforBOMusage.
TwotypesofBOMprocessareusedinSalesandDistribution.TheyareABOMandKBOM.
Example:Inthecaseofcomputersales,therearetwoscenarios.Inonescenario,wesellthepartstogetherasanassembledbundle
andinthatcasethepricingisdoneforthebundleandnotbasedontheindividualparts.Butinotherscenario,partsofthecomputers
aresoldseparatelyinakitandthepricingisdonebasedonthepartsandtheirquantities.
LetusdefinethreematerialsCOMPTR,PROC(Processor)andMON(Monitor).
LetuscreateasimplestructurefordemonstratingSDBOM.
ThemaincomponentisCOMPTRandtheirpartsareMONandPROC.
Therearetwocasesofsales:
1.ABOM(AssemblyBillOfMaterial).
Thesaleisdoneasanassembledcomputer(AssemblyofMONandPROC).
Forsellingtheassembledcomputer,Pricing,Inventory,Deliveryetcaredoneattheparentlevel(COMPTR)andnottobedoneat
componentlevel.
HowtosetupABOMisexplainedindetailsbelow.
2.KBOM(KitBillOfMaterial).
Components(PROCandMON)aresoldseparatelyinakit
The sales are done as separate components in a kit(without assembly) in which the Pricing, Inventory, Delivery etc are done at
componentlevelandnottobedoneatparentlevel.HowtosetupKBOMisalsoexplainedindetailsbelow.
HowtosetupKBOMisexplainedindetailsbelow.
AllthesecontrolsaredoneatOIClevel.
SeparateOrderItemCategoriesareusedforparentitemandcomponents.ItemcategoryandHigherLevelItemCategorydecideshow
theseBOMswork.
DemonstrationofABOM:
TodemonstrateABOM,wewilluseItemCategoryGroupERLAfortheparentitemandItemCategoryGroupNORMforcomponents.
WewilllinkOICTAQtotheparentitemthroughOrderItemCategoryDetermination.Billing,Pricing,Delivery,StructureBreakdownetc
areapplicabletoTAQ.
SimilarlywewilllinkOICZTAEforcomponents.ForZTAEbilling,Pricing,Delivery,StructureBreakdownetcmustnotbeapplicable.
Thecomponentswillactlikeatextinsalesdocument.Hencewhenwemakedelivery,stockoftheparentitemwillcomedownand
stockofcomponentswillnotcomedown.Billingcanbegeneratedonlyforparentitem.
DemonstrationofKBOM:
TodemonstrateKBOM,wewilluseItemCategoryGroupLUMFfortheparentitemandItemCategoryGroupNORMforcomponents.
WewilllinkOICZTAPtotheparentitemthroughOrderItemCategoryDetermination.Billing,Pricing,Deliveryetcarenotapplicablefor
parentitembutStructureBreakdownisapplicabletoparentitem.
We will link OIC TAN for components. For TAN, billing, Pricing and Delivery are applicable but Structure Breakdown is not be
applicable.
ForKBOM,theparentwillactlikeatextinsalesdocument.Hence,whenwemakedelivery,stockofthecomponentswillcomedown
andstockoftheparentwillnotcomedown.Billingcanbegeneratedonlyforcomponentitem.
ThestepbystepproceduretosetupbothBOMsareexplainedinthebook.ThenthecreationofsalesorderswithBOMexplosionis
alsodemonstrated.

(referbookformoredetails)

Page232(underAppendix):
LeanWarehouseManagement(LWM).
LeanWMisthesimpleformofthewarehousemanagement.IfFullWarehouseManagement(FWM)isimplemented,theprocedureof
materialmanagementwillbealengthyprocess.IfFWMisimplemented,youcanuserandomstorageconceptinthewarehouse.But
forLWM,youneedtousefixedbinsforeachmaterial.
IfWM is implemented, the delivery process of material changes. If WM is implemented, you need to create a Transfer Order after
creatingthedeliverydocument.AfterprocessingthisTransferOrder,youneedtocalltheDeliveryDocumentandthenenterthepick
quantityandissuegoods.
ToexplainLWMconcept,wewillusenewPlant(PLT5),StorageLocation(SL5)andwarehouse(WHL).
Remember,ifyoucreateanewplant,youwillhavetodomanysetupinEnterpriseAssignmentandMiscellaneousSetup(Referthe
chapterEnterpriseAssignmentformoredetails).
ThestepbystepproceduretosetupLeanwarehousemanagementisexplainedinthebook.