Sap

Sales and Distribution Enterprise Structure Overview

Client

A grouping of companies with a common purpose.

Example: “Client 001”

Company Code

Legally independent entity, within a client, that has its own balance sheet and creates its own profit-and-loss statement.

Example: Co.Code 0001

Organization Terms Finance

Sales Organization

A selling unit

Example: 0001

Distribution Channel

Channel through which saleable

materials or services reach

customers.

Example: Retail, Institution

Organization Terms Sales and Distribution RETAIL STORE

Division

A product group

Example: Foods, Cosmetics

Sales Area

The combination of sales organization, distribution channel and division

Organization Terms Sales and Distribution

Organization from Sales Perspective Sales Area

Sales Offices

A subsidiary of a Sales Area (Sales Region)

Example: South India

Sales Group

A subgroup of Sales Office (District)

Example: Hyderabad

Sales Person

Individual person assigned to a Sales Group

Example: 0001

Organizational structure in MM Company Code 1 Company Code 2 Plant 3 Client = Storage Locations Plant 1 Plant 2

Organizational Structure in Shipping Shipping point Plant Client 0001 0002 Railway Air 0001 Truck

Organizational Structure in Accounting Company Codes Client 0002 0003 0001

MASTER DATA IN SALES AND DISTRIBUTION

Every company is structured in a particular manner. In order to work with the SAP system the required company structure has to be mapped into the system. This is done with the help of different organizational structures.

Data about the products,services and business partners is the basis for sales processing in sales and distribution. In the SAP R/3 system, the master data is required for sales processing. In addition to sales and Distribution ,other departments of the company such as Accounting,MM,and PP access the master data.

The different business transactions in sales and distribution are stored in the SAP system in the form of documents.

In SAP,customers and vendors have been termed as Business Partners.

If a customer is also a vendor,both customer master record and a vendor master record should be maintained . To create a link between the master records you should enter the vendor number in the customer master record and customer number in the vendor master record.

Both the accounting department and the sales and distribution department have access to the customer master record. In order to avoid data redundancy,the data for both department is stored in a common master record.

Customer Master Terms

Business Partner

All Customers with whom the company is in contact.

Sold-to Party

The company which places the order

Ship-to Party

The partner receiving the goods.

Bill-to Party

The location, the invoice is mailed to

Payer

Responsible for Payment

Carrier

The vendor responsible for transporting goods

Business Partners in SD Business Partner Functions Sold To Party Personnel Bill To Party Payer Ship To Party Vendor

General data,Company Code data and Sales and Distribution data is stored separately in the customer master record.Company code data is defined individually for for each company code.Sales and distribution data is defined individually for each sales area.General data is independent from company code and sales area.It applies to one customer in all company codes and sales area.

Structure of the Customer Master Records Company Code Data General data Sales and Distribution Data

General Customer Master Data Address Marketing Export General Control Contact Person

Identified only by the Customer Number, not by Company Code or Sales Area

Gives the General Control Parameters Applicable for any business transaction With the customer

General data

Company Code Customer Master Data Account Management Payment Correspondence Insurance Applies to only one Company Code Company Code Data

Sales and Distribution Customer Master Data Sales Shipping Billing Partner Functions Applies to only one Sales Area - Dependent on Sales Structure S&D Data

Linking Business Partners

In most cases the sold-to party is at the same time ship-to party,payer and bill-to party.For this reason in the SAP system the function sold-to party includes all these other functions.

If a customer fulfills all the partner functions at the same time then only one master record is necessary but if the functions are divided ,a corresponding number of master records is needed.

Account Group :

With the help of account groups we can control the screens,fields and number ranges for the different partner functions of a customer.

Each master record must be assigned to an account group.When you create a customer record for different partner functions,different account groups are assigned automatically by the system.

You can access the general data of a customer by just entering the customer number,but to access the S&D data,you have to enter the customer number and sales area.

One Time Customers :

With some customers your company has a long-lasting relationship but with other customers you have only one contact. These customers are known as one time customers.

For customers you create a customer master record for each customer but for one time customers you create a collective master record.

When creating a sales order for a one time customer,the system automatically branches to an address screen,where you can enter the address,name and other relevant information.

Block/Unblock :

You can block a customer master record for a sales order,a delivery, billing or sales support or all of them.

Display changes :

You can display all changes which have been made to a customer master record after its creation.

Changing an Account group :

If,for example a payer takes on the role of a sold-to party,you can assign the new function to the customer by changing the account group.Changes to the account group and the accompanying partner functions can only be made from a lower level to a higher level.

Comparing customer master record

Customer master records are created and maintained in financial accounting and in S&D.In some cases,a customer master record may have been created in S&D but not in FI or Vice-Versa.There is a program which determines which customer records have been maintained in one of these applications but not in the other.

Assignment 1

Create 5 SP, 3 SH, 1BP, 1PY

Check the SD views associated with each

Check the org. elements in which view they fall

Check the comparison report

Change the account group and check the data related with each when changing the account group.

Product & Services

Product and services are combined in SAP under the term material.

All information necessary for the management of a material and its stocks, as well as its use, is maintained in the so-called material master record. This includes, for example, data on purchasing, on sales and on storage.

Material type: The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material, or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance.

Material types in the SAP standard version are, for example, raw materials, trading goods, semi-finished products, finished products, or services.

Depending on the material type, company areas maintain different data screens. This screen selection applying specifically to an application is called a "view".

Trading Goods

Trading goods are movable goods intended for commercial exchange. Examples of trading goods are market goods, consumption goods and durable goods. Trading goods are always bought and re-sold by your company. The material master record for trading goods therefore always contains purchasing data and sales data. Trading goods are managed in the SAP R/3 System using the key HAWA.

Non-stock Material Non-stock material includes materials that are not managed on an inventory basis (for example, small parts such as nails) though physically in stock. Non-stock materials are managed in the SAP System using the key NLAG. Services Services are represented and managed in the SAP System as materials. Services are immaterial goods that differ from other goods, particularly in that their production and consumption coincide. Services are generally regarded as non-transportable and non-stockable. Typical services are commercial services, transport services, bank and insurance services, goods from cultural organizations and the mass media, as well as services provided by the public security forces or the education and health sectors. Since services cannot be stored, a material master record of this material type does not contain inventory data or inventory management data. No fields for gross weight, net weight or unit of weight are included in the basic data for a service, as are for other material types. Services are managed in the SAP R/3 System with the key DIEN.

Packaging Material This material type includes all materials needed for packaging. For example, boxes or crates. Packaging materials are managed in the SAP R/3 System with the key VERP. Other Material Materials which cannot be assigned to any of the standard material types, can be maintained, as "Other material". Thus, besides standard material types (trading goods, finished products, services etc.) you can also create additional material types. When creating such a material, note that a material type must be entered on the first data screen. For standard material types, this entry is not necessary because the material type is selected in the menu .

ASSM Semifinished products CONT Kanban containers DIEN Services DUTT Trading goods ERSA Spare parts FERT Finished products FGTR Beverages FHMI Prod. resources/tools FOOD Foods (excl. perishables) FRIP Perishables GG GAUGES HALB Semifinished products HAWA Trading goods HERS Manufacturer parts HIBE Operating supplies IBAU Maintenance assemblies INGG Prod. resources/tools INTR Intra materials KMAT Configurable materials LEER Empties LGUT Empties (retail) MACH Rohstoffe MUSTER MODE Apparel (seasonal) NLAG Non-stock materials NOF1 Nonfoods PANI Trading goods PIPE Pipeline materials PROC Process materials PROD Product groups ROH Raw materials UNBW Nonvaluated materials VERP Packaging VKHM Additionals VOLL Full products WERB Product catalogs WERT Value-only materials WETT Competitive products Type Material type description in SAP

S&D Screens in the Material Master Record Four screens in the material master record are relevant for Sales and Distribution: Sales 1, Sales 2, Sales/Plant Data ,Texts in Sales and Distribution . S&D Description and important data fields Sales 1 Basic data and units of measure (e.g. sales units, order quantities) Sales 2 Material groupings and tax classification e.g. product hierarchy,material pricing group Sales/Plant Data Sales and shipping data e.g. gross weight, loading group Texts in Sales and Distribution Single-line or multi-line texts for sales documents, in several languages.

In the standard version of the SAP R/3 System,the following industry sectors have been defined for the material master record: A ------- Plant engineering and construction C ------- Chemical M ------- Mechanical engineering P -------- Pharmaceutical Units of Measure and Quantity Specifications A material can be stored, transported and sold in various units of measure. In the SAP R/3 System, you can therefore define various units of measure which are maintained in the sales and distribution screens.

You can enter the following units of measure in the sales and distribution screens :

Base Unit of Measure

Alternative Unit of Measure

Sales Unit

Delivery Unit

Quantity Specifications

In Material Master Record two different quantity specifications are used:

Minimum Order Quantity

Minimum Delivery Quantity

Delivering Plants

The delivering plant refers to the plant from which the goods are to be delivered to the customer, within a specific sales organization and distribution channel. The plant can be automatically proposed by the system when processing a sales order, if it has been maintained in one of the master records. It can be derived from :

the customer/product info record

the customer master record of the ship-to party

the material master record..

The order of priority is as in the list above

Number Assignment for Material Master Records The material number can either be entered externally by the user, or assigned internally by the system. Both internal and external number assignment is possible. If you do not enter a material number when creating a material master record, the system automatically carries out internal number assignment.

Frequently occurring material combinations and common delivery quantities can be stored in item proposals. During order entry, an item can be proposed by referring to an item proposal. You can also access an item proposal using a match code. An item proposal can consist of materials of different material types. The order entry can be processed more efficiently using item proposals. Item proposals can be transferred into a sales order document or be selected from a selection list, for example. During these transactions the current material master record is always taken into account. Items proposed from an item proposal can always be changed in the sales order. An item proposal, containing the materials a customer usually orders, can be assigned to that customer Master Record, for example. This item proposal is then automatically proposed during order entry . Item Proposals

S elect - Products  Item proposal  Create . Edit the data by at least entering data in the fields Item proposal type , Sales organization , Distribution channel and Division . You reach the Create Item Proposal: Overview - Fast Entry screen where you enter the item proposal

Now create a sales order:after entering the sold to party, purchase order no Edit propose item

MATERIAL DETERMINATION Material determination enables the automatic substitution of materials in sales documents during sales order processing. For example, during the course of a sales promotion, the system can, during sales order entry, automatically substitute a material that has promotional packaging. A consumer product may have a special wrapper for, for example, the Christmas season. Using material determination, the system substitutes the material only during the specified period.

MATERIAL LISTING & EXCLUSION Material listing and exclusion lets you control which materials specific customers may or may not buy. For example, if you create a listing of products for an individual customer, the customer may only order products on the list. You can also specify material exclusion for a particular customer. The customer may not order excluded materials from you.

Products  Listing/exclusion  Create . You reach the Create Listing/Exclusion: Initial Screen .Enter a value in the List/excl.type . The standard version of the SAP R/3 system includes two material listing/exclusion types: – A001 for material listing – B001 for material exclusion Press ENTER . The Selection of Key Combination window appears. The standard version includes only one key combination: Customer/material .Mark the Customer/material field and press ENTER . You reach the screen where you create the master data . Enter a customer, validity period, and the materials that you want to list or exclude Creating Master Records for Material Listing and Exclusion

PRICING Prices :

In the standard R/3 system,the basis of pricing during sales processing is the gross price of a material.The following kinds of pricing are predefined.

Material Price

Price-list Price

Customer-specific price/User defined Price

Material Price :

When you create a material price,you specify :

A price or a pricing scale for a specific material

A combination of sales organization and distribution channel for which the material price is valid.

Price-list Price :

Depending on your company’s pricing policies,you can define price list types by customer groups (wholesale,retail etc.)

Customer-specific price/User defined Price :

When you create a Customer specific price you specify :

Customer

Specific material for the customer

Discount and Surcharges :

The standard R/3 system includes a variety of commonly used discounts.

Few predefined discounts are :

Customer discount

Material discount

Price group discount (Bulk buyer,Occasional buyer)

Material pricing group discount (Spare parts,Normal)

Freight charges :

You can pass freight costs on to your customers by using

special conditions types that relate to shipping and freight charges.It includes predefined condition types that are based on

Incoterms.

Incoterms are internationally recognized shipping terms that establish the

respective liabilities of both the shipping party and the recipient.

For example,a common shipping term is FOB (free on board).The term can be further qualified by adding the loading port.

CONDITION TECHNIQUE :

The method by which the system determines the prices from the information stored in condition records is called condition technique.The condition technique works in the background.The standard SAP system includes condition types for basic pricing elements.The predefined basic pricing elements in standard SAP R/3 system are :

Prices

Discounts and Surcharges

Freights (Expense reimbursement)

Taxes

The sequence of activities which should be carried out in Condition Technique :

. Define condition types for each of the price elements that occur in your daily business transactions.

2. Define the condition tables that enable you to store and retrieve

condition records for each of the different condition types.

3. Define the access sequences that enable the system to find valid

condition records.

4. Group condition types and establish their sequence in pricing

procedure

Few predefined condition types in SAP are :

- PR00 PRICE

- K004 MATERIAL DISCOUNT

- K005 Customer specific material specific discount

- K007 Customer discount

Which determines that the Condition Type is a Surchages and Discounts or prices. This indicates that the value determined in the condition record will be of % or fixed amount or quantity . This field is left blank , is used by the system to categorize condition types into smaller groups , such as all freights or tax conditions. This field is left blank this indicates The system is to use the commercial rounding to find the value of the condition record This field is left blank, which indicates The condition type is not relevant for Commulation of values of BoM, nor it is Relevant to be duplicated across all sub items Of a BoM. The value assigned ,indicates That this condition can only Result plus/minus value from the condition

Indicates whether the system calculates the basis for the scale value from more than one item in the document Indicator that controls whether rounding difference is settled for group conditions with a group key routine. If the indicator is set, the system compares the condition value at header level with the total of the condition values at item level. The difference is then added to the largest item. Identifies a routine that calculates the basis for the scale value when a group condition occurs in pricing.

If this condition is marked as a header condition, it is possible to enter the condition type in the header condition screen. Checks for changing the condition manually are unaffected by this. Mark this field if the conditions of this type are allowed to be entered in the document items. The condition is then only valid for the particular item in which it is entered. Indicator which controls the priority within a condition type between a condition entered manually and a condition automatically determined by the system. &WHAT_TO_DO? Make the following entries according to your requirements: _: No limitations A: Freely definable B: The automatic entry has priority. If a condition record exists, the condition cannot be entered manually. C: The manual entry has priority. When you enter the condition manually, the system does not check whether a condition record exists. D: Cannot be processed manually Specifies whether the amout or percentage for the condition type can be changed during document processing. Specifies whether the conversion factors for the units of measure in conditions of this type can be changed during document processing. Indicator that controls whether the condition type may be deleted from the document. Specifies whether the value of the condition type can be changed during document processing. Specifies whether the calculation type for the condition type can be changed during document processing

Condition Table :

A condition table defines the combination of fields (the key) that identifies an individual condition records. For example when you enter the price for a product or a special discount for a special discount for a good customer,you create individual condition records.

Example of a condition table :

A sales department creates condition records for customer specific material price.The standard R/3 system includes condition table 005 for this purpose.The key of table 005 includes the following fields :

Sales organization

Distribution Channel

Customer

Material

The first two fields identify important organization data and the last two fields express the relationship between customer and specific materials.When the sales department creates condition records for a material price or discount that is

specific to one customer, the system automatically uses condition table 005 to define the key and store the record.

Creating a new condition table : You can create a new condition table other than the tables defined in SAP system. When you create a new condition table,you select a combination of fields from the allowed fields. Deciding the order of fields : The order of the fields in a condition table affects the performance of the system during pricing.To create an efficient condition table try to follow two general guidelines : 1. Place the most general field at the top,for example the organizational fields. 2. After the organizational fields,place fields from the document header before those that come from the item level.For example,customer comes before material.

ACCESS SEQUENCE : An access sequence is a search strategy that the system uses to find valid data for a particular CONDITION TYPE. It determines the sequence in which the system searches for data. The access sequence consists of one or more accesses. The sequence of accesses establishes which condition records have priority over the others.The accesses tell the system where to look first,second and so on,until it finds a valid condition record. You specify an access sequence for each condition type for which you create condition records. Note: There are some condition types for which you do not create condition records.They are known as Header level condition types,for example Value discount (HB00) which is entered only manually.These condition types do not require an access sequence. Example of an Access Sequence : A sales department may offer customers different kinds of prices. The department may create,for example,the following condition records in the system : 1. Material price 2. Customer-specific price/User defined price 3. Price list price for major customers During sales order processing,a customer may,in theory qualify for all the three prices. The access sequence enables the system to access the condition records in a particular sequence until it finds a valid price.

PRICING PROCEDURE :

The primary job of a pricing procedure is to define a group of condition types in a particular sequence.The system determines the pricing procedure based on FIVE factors:

1. Sales Organization

2. Distribution Channel

3. Division

4. Document Pricing Procedure

5. Customer Pricing Procedure

In Customizing we have to assign the appropriate pricing procedure to the combination of these five factors.During pricing,the system determines the pricing procedure by taking into account :

Sales Area

The pricing procedure key in the header of the sales document type

The pricing procedure key in the customer master record

EXCLUSIVE : You can find the functionality called Exclusive in customizing while defining the access sequence for condition types.This function is available in the form of check box.When you do not set the indicator the system searches for a valid condition record from top to bottom but assigns the record from bottom to top.When you set this indicator,the system only assigns that particular condition record for which the access sequence has been set exclusive. Example : AcNo. Table Description Exclusive 10 4 Material 20 5 Customer/Material 30 6 Price-list price x

CONDITION EXCLUSION : This functionality is available in the customizing detail screen for the different condition types in the form of a field.The system accesses this field while searching for the condition records through the pricing procedure for the various condition types which are grouped in that particular pricing procedure.While accessing the different condition types in a pricing Procedure if the system finds that a particular condition type has been marked as exclusive then it stops the search and comes out of the search.The systems assigns all those condition records which it finds for the different condition types which appears in the pricing procedure sequence, till the condition type which has been marked as exclusive.

CONDITION UPDATE : This field is also available in customizing details for the different condition types.The consumer packaged goods industry frequently offers promotional allowances and discounts to customers based on sales order data that is accumulated over time. For example, when your customers place orders for a new product, you may offer them an introductory allowance up to a specified total value (for example, up to USD 5,000). As a customer places orders for the new product, the system must be able to keep track of the cumulative discount total. Condition update is controlled by the condition type in setting in Customizing. If you set the condition update for a particular condition type, the system subsequently updates the corresponding condition records whenever you process relevant sales and billing documents.Condition update provides the basis for the following pricing functions: • Maximum value • Maximum quantity • Maximum number of orders When the maximum value,maximum quantity or maximum number of orders is reached the system automatically deactivates the particular condition record.

CONDITION SUPPLEMENTS : A condition supplement is a supplement for a particular condition type. For example, you can include a supplement every time you apply a material price. The supplement can contain various discounts. During pricing, the system automatically applies the discounts defined in the supplement every time it accesses a material price. You define for which condition types you want to use condition supplements in Customizing for Sales. NOTE : You can only enter a condition supplement if the condition type you are working with has already been defined in Customizing for Sales to include condition supplements. Example : You enter a condition record for the price of the material ‘A’ and want to create it so that it is always calculated together with a customer absolute rebate of Rs. 10 and a special offer discount of 10 %. For every sales order for this material, the system automatically calculates the sales price, the customer rebate, and the special offer discount at the same time.

EXCLUSION GROUPS : During pricing in sales and billing documents, more than one condition record may apply to a particular item at any one time. You can use the condition exclusion process to compare possible conditions in order to determine such things as the best price for a customer. The Condition Exclusion Procedure First of all, you create exclusion groups. An exclusion group is a list of condition types that is identified by a three-digit number. You define each exclusion group in Customizing for Sales, including a short, descriptive text.You then assign the exclusion groups to a pricing procedure,thus defining the condition exclusion. Depending on how you configure exclusion groups in the pricing procedure, the system can use condition exclusion to select the best price or discount in six different ways:

1. Best condition between condition types (Selecting the best condition record of a particular condition type from within one exclusion group). 2. Best condition within the condition type (Selecting the best condition record for a condition type). 3. Best condition between the two exclusion groups (Selecting the best conditions from different exclusion groups) 4. Exclusive (Excluding all condition types in the second exclusion group if a particular condition type in the first exclusion group exists in the document) 5. Least favourable within the condition type(Selecting the least favourable condition record for a condition type) 6. Least favourable between the two exclusion groups. (Selecting the least favourable conditions from two exclusion groups)

Determining Best Price Across Condition Types During automatic pricing for a sales order item, the system may find a number of valid condition records that apply to the same item. If the competing condition records belong to a variety of condition types, the system selects the record with the best price and excludes the other condition records. Condition records that the system ignores are not deleted from the sales order but are simply deactivated. You can still see the excluded condition records on the pricing screen in the sales order. Determining Best Price Within One Condition Type If the access sequence for a particular condition type does not specify exclusive accesses, it is possible for the competing condition records to exist within the same condition type. For example, the system may find two valid condition records for a material discount (K004) - one a material discount, the other a customer-specific material discount.The system determines the record with the most favorable discount for the customer. Note: If the Exclusive access indicator is set, the system looks no further after it finds the first valid condition record. In this case, the system cannot determine a best price.

Determining Best Price from Different Exclusion Groups This method allows the system to check between exclusion groups for the most favorable price or discount. In this case, the system totals the condition values for each group, compares them, then selects the most advantageous group for the customer. Excluding the Conditions in an Exclusion Group In the fourth alternative when the system selects one particular condition type which exists in the first exclusion group, it excludes all the conditions in the second exclusion group from pricing. After you have defined the exclusion groups you want to use, you can enter them in the pricing procedure. The following example shows how exclusion groups can be used in the pricing procedure. In this case, the exclusion procedure selected is the best condition type within one exclusion group. Exclusion Group Condition Type Rate 001 K004(Material Discount) Rs.100 001 K007(Customer Discount) Rs.50 002 KF01(Freight 1) Rs.2/EA 002 KF02(Freight 2) Rs.1/EA

When you process a Sales Order with the above condition records,the exclusion group 001 deactivates condition type K007. (The system determines that the K004 condition record is the best discount and ignores the other condition types defined in the group.) Exclusion group 002 deactivates condition type KF01 for the same reason.(The system determines that the KF02 condition record has the lowest freight cost and ignores the other condition types defined in the group.) The final price in this example is calculated this way: (PR00 = Rs.500) 500 - 100 Rs. + 1 Rs = 401 Rs.

Defining Upper/Lower Limits for Conditions : Under this section in customizing you can specify a lower or/and upper limit for any condition type.While creating a condition record for a particular condition type which has a upper and/or lower limit ,the system automatically checks whether the particular condition is satisfied. Activating Pricing by Item Category In this section, you define the item categories for which pricing should be carried out and whether the item value should be taken into account when determining the total value of a sales document. Activating Cost determination for Item Categories When processing a sales document ,the SAP System can determine the cost for each item. The cost refers to the costs of procurement or production of goods. It is an important indicator for costing a profit margin for the sales of goods.In the standard SAP R/3 System, the condition type"VPRS"is predefined for determining the cost.

How Pricing is carried out in Sales and Distribution . Sales Document Sales Area Do.P.P Key Cu.P.P Key Pricing Procedure PR00 K004 PR00 Condition Type PR00 10 M.P 20 P.P 30C.M.P Access sequence Condition Record

Cross Selling + ? ? ? MATERIAL = AS RS 500 EUR MATERIAL = AS RS 500 EUR MATERIAL = AKS RS 600 EUR = RS1100 EUR Attempt to sell a customer additional product / products in addition to those they already wish to buy. A material offered to customers in addition to merchandise they have already ordered. For example

If the customer orders a VCR, you might suggest purchasing some blank

tapes

CUSTOMER HIERARCHY A customer hierarchy is a flexible structure consisting of Nodes. Each Node-with the exception of the uppermost node-refers to another node at a higher level in the hierarchy.Nodes that are assigned to a higher-level node are known as dependent nodes. Creating a customer hierarchy consists of three steps : 1. You create master records for each node that you plan to include in the hierarchy. 2. You assign the nodes to each other,gradually building up your hierarchy. 3. You assign your customers to the appropriate nodes. Typically,you create a hierarchy of nodes starting with the topmost,then creating each level as you go on.Usually customers are assigned to nodes at the lowest level of the hierarchy.However,it is also possible to assign customers to nodes at higher levels in the hierarchy.

The following figure explains a customer hierarchy : ABC Ltd . Corporate Office (Bombay) 100 0001 01 01 Pricing South 101 0001 01 01 Pricing North 102 0001 01 01 Pricing x Noida 104 0001 01 01 Pricing x Chandigarh 103 0001 01 01 Pricing Customer 201 Customer 202

Note : The organizational data is usually the same for each individual node in the hierarchy.However,this data can also vary. The condition types predefined for Customer hierarchy are HI01 and HI02.The condition type HI01 is discount based on hierarchy node and HI02 is discount based on node and material.

CREATING A CUSTOMER HIERARCHY

CREATE CUSTOMER :Marketing

This is the last screen . Now save. Set the rebate and pricing indicator for the relevant nodes which are applicable for the same

In this dialog box<in the upper half>enter the highest level hierarchy node and select copy . Do not enter any thing in the lower half. similarly for other H.Nodes to assign customer to the various nodes repeat the procedure as above Now save

Sales Activity Inquiry Quotation Sales Order Delivery Transport Invoice FINANCIAL ACCOUNTING MATERIAL MANAGEMENT SALES INFORMATION SYSTEM SALES CYCLE