Basic Rules in SAP-Sales and Distribution Module Sales Organization :Responsible for: Distribution of goods and services Negotiating

Sales Conditions Product Liability and rights of recourse A sales organization is uniquely assigned to a company code Master datas are separately maintained for a sales organization All items in the Sales and Distribution document belong to a sales organization Distribution Channel: Means through which products and services reach the customer A distribution channel: Defines responsibilities Helps in achieve flexible pricing Differentiate Sales statistics Division: A division is used to group products and services. A division represents a product line. Sales Area: A Sales area is a combination of Sales organization Distribution Channel DivisionEach Sales and distribution document is assigned exactly to one sales area.A sales area can belong to only one company code.Sales OrganizationDistribution ChannelDivision Sales Area Plant and Storage Location: 2 Basic Rules in SAP-Sales and Distribution Module A Plant is a location where stock is maintained Plant and storage location are used by all logistic area of R/3 System A Plant is uniquely assigned to a company code Shipping point: Shipping point is the highest level of organizational unit in shipping Each outbound delivery is processed by one shipping point Shipping points are assigned to a plant More than one shipping point can be assigned to a plantSales and Distribution is SAP begins with establishing customer relationship and ends withinvoicing for the delivery of goods or service provided to the customer .A Standard sales transaction has the following flow: InquiryQuotationOrder DeliveryBilling The customer order management cycle begins with pre-sales activities. A standard order in SAP contains:

Customer and material info Pricing conditions Delivery dates and quantities Shipping info Billing Info Inventory sourcing in SAP is taken care by Availability check Shipping in SAP supports Outbound delivery creation Picking Packing Post Goods Issue Billing in SAP supports 3 Basic Rules in SAP-Sales and Distribution Module Creating invoices for products and services Creating credit and debit memo Cancel previously posted billing documents Automatically transferring billing documents to accountingWhen a billing document is created for a sales order we Credit the sales revenue account Debit the customer receivables account Sales Document A sales document is grouped into three structures Header Item Schedule Line Outbound delivery A delivery document is grouped into two structures Header ItemSeveral orders can be grouped into same outbound delivery if they have same Shipping point Delivery date Ship-to- address

Picking A transfer order is created for an outbound delivery A transfer order is created for a warehouse number Post Goods Issue 4 Basic Rules in SAP-Sales and Distribution Module When PGI is done the system Updates the quantity in inventory management and delivery requirements in materialsplanning Generates additional documents for accounting Adds the delivery to the billing due list Updates status in sales documents Billing We can group deliveries into single billing document if the deliveries have same Billing date Payer Destination CountryThe effects of billing are Debit on the customer receivables account and credit on sales revenue account iscreated Sales information system Sales statistics is updated Master data in SAP SAP SD has got the following main masters: Customer master Material master Condition master Output master Customer material information master Customer master 5 Basic Rules in SAP-Sales and Distribution Module G e n e r a l D a t a S a l e s A r e a D a t a C o m p a n y C o d e d a t a Tab pages Tab pages Tab pagesA d d r e s s O r d e r A c c o u n t i n g Control data Shipping PaymentPayment terms Billing CorrespondenceMarketing Partner functions InsuranceUnloading pointsExport dataContact

personsThe chart above shows detail on three main areas of customer master and the tab pages foundunder each area. Material Master is maintained in different views and important views of sales and distribution are Basic data 1 Sales Org 1 Sales Org 2 Sales : Gen/Plant Foreign Trade Sales text Sales document in Sales and distribution mainly controls: Number range Item No increment Reference mandatory Item division Read info record Document pricing procedure Incomplete messages Alternative sales documents 6 Basic Rules in SAP-Sales and Distribution Module Delivery block Billing block Immediate delivery Delivery type Billing type Proposed delivery date Lead time for delivery Proposed pricing date Plant determination in Sales and distribution: To determine the plant in an order the system checks the master in the following order:a)Custo mer material info. record of the sold -to partyb)Custo mer master record of the ship -to -partyc ) M a t e r i a l master record of the material Shipping point determination

The following rule is used in determining shipping point in a sales order :Plant + Shipping condition (Sold-to-Party) + Loading group Shipping pointMaintained in Material master Gen: Plant data Route determination Route determined using the following rule in Sales and Distribution (SAP) Departure Zone of Shipping Point+Shipping condition (Sold-to-Party)+Transportation Group (Material master)+Transportation Zone (Ship-to-Party)Route 7 Basic Rules in SAP-Sales and Distribution Module Delivery scheduling: As name denotes delivery scheduling is scheduling delivery for an order and it carries thefollowing important dates: Material availability date Transportation planning date Loading date Goods Issue date Delivery date Availability Check in SAP: Availability check is carried out at item level for a plant Availability check is done on the material availability date If material availability date is in the past the forward scheduling is done, if not backwardscheduling is done. Item category determination in the order: Item category denotes the category to which the item belongs and the following rule is used for determination of item category. Item category controls the way in which item behaves in a salesdocument. Sales document type+Item category group (Material master)+Item usage+Item category of higher level itemItem category of the itemItem category in a sales document mainly controls the following Relevance for billing of an item Billing block Pricing relevance Business data relevance item Schedule line allowed Item relevant for delivery 8 Basic Rules in SAP-Sales and Distribution Module Returns Determine cost Credit active Incompletion procedure Partner determination procedure

 Structure scope (relevant for bill of material explosion) Value contract material Contract release control Schedule line category: Every item which has a delivery will have a schedule line and the schedule line category isdetermined with the following rule:Item category + MRP type(Material Master) Schedule line category Schedule line category mainly controls: Delivery Block Movement type Item relevant for delivery Req/Assembly Availability Product Allocation Copy Control: Copy control is normally set for Header Item Schedule line levelsTo control copying procedure we have Data transfer routines Copying requirements Switches Pricing Procedure determination: Pricing is an important component in SAP-SD. Once an order is entered taking into considerationsome major factors, the pricing procedure for the particular order is determined.The major factors taken into consideration for pricing procedure determination is: Sales area+Customer Pricing procedure(Customer Master Sales area data)+Document Pricing Procedure(Sales Document Type) 9 Basic Rules in SAP-Sales and Distribution Module Pricing ProcedureWhat are the components of pricing procedure?How is that a person should work on Pricing Procedure? To start with first Define a Condition table: What is a condition table?A table where the key fields are data combinations for which messages are triggered (and offeredfor processing).For each data combination, there is a condition record in the table. The data part contains theactual message.As mentioned above a condition table is a table which carries key fields for picking up the prices. Define Access Sequences The access sequence is a search strategy which the SAP System uses to search for conditionrecords valid for a condition type.For example, you can define for a price that the SAP System first searches for a customer-specific price and then for a price list price.Recommendation

If you define your own access sequences, the key should start with the letter Z since SAPreserves this letter for the standard system. Do not change access sequences contained in the standard SAP R/3 System.Actions1. Check to what extent you can use the access sequences contained in the standardSAP R/3 System.2. Create new access sequences by copying a similar access sequence and changing itaccording to your needs. Specify an alphanumeric key which may have up to 4 digits anda textual description.3. Maintain the accesses for the access sequence by specifying the condition tables inthe desired sequence. With the sequence, you define the priority of the accesses. Youcan display combinations of key fields using possible entries.4. Generating the accesses is no longer necessary as of 3.0, as this is carried outautomatically. You can generate the accesses manually, if required, by choosing"Utilities".ExampleIn pricing, you use a customer-material discount. The condition records you create are based oncustomer data from the document header and material data from each document item. The 10 Basic Rules in SAP-Sales and Distribution Module discount is only valid for 2% of your customers, however. Normally, this would mean that thesystem would needlessly search through every available item for 98% of your customers. In thiscase, pre step would improve system performance. Define Condition Type A characteristic of a condition. For example, in pricing, different condition types are used todistinguish between a discount that refers to a net price and a discount that refers to a grossprice.Price elementsare represented in the SAP system by condition types. Price elements can be, for example, prices, surcharges, discounts, taxes or, freight, and are stored in the system incondition records.You can, for example, define whether a discount is calculated as a percentage or a fixed amountusing the condition type.You specify an access sequence in every condition type. Thus, you define which fields the SAPsystem checks when searching for a valid condition record.Note The pricing procedure groups all condition types together which the SAP system is toautomatically take into account during pricing for a business transaction (see the section"Define and assign pricing procedures").Remember that you can only specify manually in a document those condition types whichare contained in the pricing procedure. You can change the outcome of pricing in the sales document manually. You can limitoptions for changing a condition type in this IMG step.Recommendation If you define your own condition types, the key should start with the letter Z since SAPreserves these letters for that purpose in the standard system. Do not change the condition types which are contained in the standard SAP R/3 System.Actions1. Check to what extent you can use the condition types contained in the standard SAPR/3 System.2. Create new condition types by copying a similar conditions type and changing itaccording to your requirements. One reason for creating a new condition type is you mayrequire a calculation rule for a discount which is not available in the standard system.Specify an alphanumeric key which can have up to 4 digits, and a textual description.Specify an access sequence for the condition types. You do not need to specify anaccess sequence for header conditions.3. Maintain the detail screen of the condition type.You can also assign a reference condition type if the condition types you are working with 11

are similar. Then you will only have to maintain condition records for the referencecondition type.In addition, you can define the upper and lower limits for the value of a condition at condition typelevel. This way, you limit the amounts or the scale values in the corresponding condition records. Define Pricing Procedures The pricing procedure defines the conditions permitted for a document and the sequence in whichthe system takes these conditions into account during pricing.A standard pricing procedure is defined in the standard SAP system. It contains conditions mostcommonly used. These include material prices, discounts, and surcharges, such as freight, or tax.SAP Recommendation

Define your own pricing procedures which contain only those condition types which youuse. Otherwise, the system makes un neccessary accesses to conditions. Do not change the pricing procedures contained in the standard SAP R/3 System.Actions1. Create new pricing procedures by copying a similar pricing procedure. o Specify a key with up to 6 characters and a description. o For a procedure, specify the condition types in the sequence of their usage.Maintain the lines of the pricing procedure2. Afterwards define the customer determination procedures for determining theprocedure.3. Define the document pricing procedures for determining the procedure.4. Assign the procedure to the sales document types and billing types.5. To determine the procedure, define the allowed combinations of: o Sales area o Customer pricing procedure o Document pricing procedure o Pricing procedure Shipping: The basis for shipping is delivery. Delivery document controls the following in deliveries Number range Item no increment Storage location rule Route determination 12 Basic Rules in SAP-Sales and Distribution Module Text determination Delivery split Gen. packing material / item Order required Delivery item category controls: Check min delivery Availability check Relevant for picking Storage location required Determine storage location Automatic batch determination

Text determination procedure Billing: Billing is the last phase in the SD process .Billing is the phase where the major integration of SDand FI Module happens.Billing document has got the following structure: Header Item Billing documents mainly control: No. range Posting block (Controls posting to accounting) Relevant for rebate Account determination procedure Account determination recon account Account determination pay.cards Output determination procedure Account Determination in SAP Account determination in SAP-SD happens with the following rule Sales Organization*Chart of Accounts*Account assignment group Customer *Account assignment groupMaterial*Account KeyG/L account on which the postings has to happen