Sales and distribution

1. Sales and Distribution:
Sales and distribution module is a part of logistics and it handles all the process of order to
delivery, it is fully integrated with the other modules of the SAP System such as MM and
PP.
SD contains many phases such as Inquiry, Quotation, Sales Order, Sales Returns, Credit
Management, pricing, tax determination, and Goods Delivery modules.
SD Flow:
Inquiry: Once we receive the quotation from the customer then as a vendor we need to
check whether we can deliver the goods with customer conditions or not.
Quotation: Once we finish the inquiry then as a vendor we need to send quotation to the
particular customer.
Sales Order: Once we receive the purchase order from customer then as a vendor we need
to raise the sales order, while raising sales order we should know the partner functions.
Sold-To-Party – who as raised the purchase order.
Ship-To-Party – where we need to deliver the goods.
Bill-to-party – to whom we have to give the bill.

2. Payer – who is going to pay the money?
Goods Delivery: After raising the sales order as a vendor we need to deliver the goods.
Billing: While delivering the goods we need to send the billing document.
Finance: Once we deliver the goods with billing vendor finance guy will interact with the
customer finance guy for finance settlements.
Transaction Codes:
Inquiry – VA11
Quotation – VA21
Sales Order – VA01
Goods Delivery – VL01N
Billing – VF01
Commonly used SAP SD tables:
Sales Documents:
VBAK – Sales Document: Header Data
VBAP -Sales Document: Item Data
VBUP – Item Status
VBUK – Header Status and Administrative Data
VBFA – Sales Document Flow
Delivery Tables:
LIKP – SD Document: Delivery Header Data
LIPS – SD document: Delivery: Item data
Customer Tables:
KNA1 – General Data in Customer Master
KNB1 – Customer Master (Company Code)
KNB5 – Customer master (dunning data)

3. KNBK – Customer Master (Bank Details)
KNVV – Sales area data
Pricing Tables:
KONV – Conditions (Transaction Data)
KONH – Conditions (Header)
KONP – Conditions (Item)
Billing Tables:
VBRK – Billing Document: Header Data
VBRP – Billing Document: Item Data
Shipping Tables:
VEKP -Handling Unit – Header Table
VEPO – Packing: Handling Unit Item (Contents)
Vendor Tables:
LFA1-Vendor Master (General Section)
LFB1-Vendor Master (Company Code)
LFB5-Vendor master (dunning data)
LFBK -Vendor Master (Bank Details)

4. SD Flow:
Sales
Inquiry - A customer’s 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. The sales area that accepts the inquiry becomes responsible for further
processing.
Quotation - A quotation presents the customer with a legally binding offer for delivering a
product or providing a service within certain fixed conditions. This offer is legally binding for the
company within a specified time period. A sales area can reply to a customer inquiry with a
customer quotation or use it to refer to a business partner contact.
Sales Order - Request from a customer to a company to deliver a defined quantity of products
or provide a service at a certain time.
The sales area that accepts the inquiry is responsible for completing the agreement.
Create Delivery:a. Picking - The picking process involves taking goods from a storage location
and staging the right quantity in a picking area where the goods will be prepared for shipping.
b. Packing - Packing is part of delivery- and shipment processing. When you process a delivery,
you can select delivery items for packing and assign them to handling units (HUs).
c. Goods Issue - As soon as the goods leave the company, the shipping business activity is
finished. This is illustrated using goods issue for outbound deliveries.
Billing - Billing represents the final processing stage for a business transaction in Sales and
Distribution. Information on billing is available at every stage of order processing and delivery
processing.
Sales Order Management Transactions
SALES ORDER PROCESSING
Creating Sales Order - VA01
Maintaining a Sales Order - VA02
Displaying a Sales Order - VA03
Releasing an Order or Delivery from Credit Hold: Non-Flooring - VKM1
Display List of RMAs by Customer - VA05
Confirm RMA Goods Receipt - VL02
Generate list of open return orders for deletion - VA05
Display Customer returns eligibility - MCSI
Removing a Billing Block (Approving Credit/Debit Requests) - V.23
PRICING MASTER DATA
Create Pricing - VK11
Creating a Sales Deal - VB21
Maintaining a Sales Deal - VB22
Displaying a Sales Deal - VB23

5. Maintaining Prices - VK12
Displaying Prices - VK13
MATERIAL MASTER DATA
Creating Material Substitution Master Data - VB11
Maintaining/Deleting Material Substitution Master Data - VB12
Displaying Material Substitution Master Data - VB13
Creating a Bundled Master - MM01
Creating a Sales BOM - CS01
Maintaining a Sales BOM - CS02
Displaying a Sales BOM - CS03
CUSTOMER MASTER DATA
Creating Partner Records - XD01
Maintaining Customer Master Data - XD02
Displaying Customer Master Data - XD03
Deactivating a Partner - VD06
CUSTOMER CREDIT INFO
Creating/Maintaining New Customer Credit Information - FD32
Displaying Customer Credit Information - FD33
Blocking or Unblocking a Customer - VD05
SHIPPING
Creating a Delivery - VL01N
Displaying a Delivery - VL03N
Changing a Delivery - VL02N
Shipment Inquiry / Display - VT03
Adjusting Transfer Order - Confirmation Quantity - LT12
Collectively Confirm Transfer Order - LT25
Batch Shipment Confirmation - VL19
PGI Reversal Cancellation - VL09
Creating Service Provider/Carrier Master Data - XK01
Maintaining Serive Provider/Carrier Master Data - XK02
Displaying Service Provider/Carrier Master Data - XK03
Maintaining Product Master/Serial # Profile/Unit of Measure/Shipping Unit - MM02
IDoc Inquiry - WE02 / WE05
BILLING
Invoicing a Customer Shipment - VF01

6. Reprinting an Invoice - VF31
Releasing a Sales Order for Billing - V.23
Creating an Invoice by Using the Billing Due List - VF04
Checking Open Billing Documents - VF05
Create Credit/Debit Memo - FB01
A/R
Controlling Total Debit/Credit bkgs - F.03
Generate FI Account balance - F.08
Generate Month-to-date Inv. register - F.02
Process payments - FBZ1
Rqst Individual Customer Corresp. - FB12
Generate Customer Correspondence - F.61
Enter Batch totals under Control ttl - FB07
Display G/L Acct. totals - FBL3N
Reverse Posted Amounts - FB08
Customer Refunds - FBL6
Customer Refund to other than Payer - FB05
Clearing Debit/Credit on Cust. acct. - FB1D
Customer Balance in Local Currency - F.23
G/L Account Balance Report - F.08
Create Invoice - legal entity adjust - FB01
Generate Cust. Acct. statements - F.27
Generate Dunning Letters - F150
Generate Billing Due List - VF04
Generate Blocked Billing Doc list - VFX3
Inq. via Credit Release Screen - VKM1
List orders by partner - VA05
Past Due invoices by customer - FD11
Check number info by G/L account - FBL3N
Display customer Line items - FBL5N
SD Configuration:
Enterprise Structure:
1. Maintaining Sales Organization
Sales Organization is an organizational unit responsible for the sale of certain products or
services.

7. IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete,
check Sales organization
2. Assigning Sales Organization to Company Code
This assignment ensures all the sales made through this Sales Organization are accounted for
in the assigned Company Code (Company Code is created by FI Consultant).
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales
Organziation to Company Code
3. Maintaining Distribution Channel
Distribution Channel is the way, in which Products or Services reach Customers.
IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete,
check distribution channel
4. Assigning Distribution Channel to Sales Organization
This assignment ensures, a Sales Organization can supply Materials to Customers through this
Distribution Channel.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution > Assign distribution
channel to sales organization
5. Maintaining Division
Division is a way of grouping materials, products, or services.
IMG -> Enterprise Structure -> Definition -> Logistics - General -> Define, copy, delete, check
division
6. Assigning Division to Sales Organization
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign division to sales
organization
7. Setting up Sales Area
All the sales are made from a particular sales Area. For creating a Sales Order Sales Area is
compulsory.
IMG ->Enterprise Structure -> Assignment -> Sales and Distribution -> Set up sales area
8. Assigning Sales Organization- Distribution Channel- Plant
Plant is created ny MM Consultant.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales
organization - distribution channel - plant
9. Define Shipping Points
Shipping Point is the Organizational element, which is responsible for shipping the Materials to
the Customers.
IMG -> Enterprise Structure -> Definition -> Logistics Execution -> Define, copy, delete, check
shipping point
10 Assigning Shipping Point to Plant
This assignment ensures that goods from different Plant can be dispatched from different
Shipping Points.

8. IMG -> Enterprise Structure -> Assignment -> Logistics Execution -> Assign shipping point to
plant
Note: Ensure to do the undermentioned configuration also though it is not in Customizing node
of Enterprise Structure.
11. Defining Common Distribution Channels for Master Data
Use
The purpose of this activity is to define distribution channels which have common master data..
Procedure
Access the activity using one of the following navigation options:
IMG Menu -> Sales and Distribution -> Master Data -> Define Common Distribution Channels
Transaction Code: VOR1
12. Defining Common Divisions for Master DataUse
The purpose of this activity is to define distribution channels which have common master data..
Procedure
Access the activity using one of the following navigation options:
IMG Menu -> Sales and Distribution -> Master Data -> Define Common Division
Transaction Code: VOR2
Pricing Procedure
In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution
Centre + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is
determined in Sales Order Header Level. Customer Pricing Procedure is determined from
Customer Master. Document Pricing Procedure is determined from Sales Document Type /
Billing Type (if configured). Once the pricing procedure is determined, Condition records are
fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing
condition is missing, system will through an error message.
In SD, the steps to configure Pricing procedure are as under:
Step 1:
Condition table: If existing condition table meets the requirement, we need not create a new
condition table. Considering the requirement for new condition table, the configuration will be
done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control -->
Condition Table (select the required fields combination, which will store condition record).
Step 2:
Access Sequence: If existing access sequence meets the requirement, we need not create a
new access sequence. Considering the requirement for new sequence, the configuration will be
done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control -->
Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in
which it is to be accessed. Here we assign the condition table to access sequence.
Step 3:
Condition Type: If existing condition type meets the requirement, we need not create a new
condition type. Considering the requirement for new condition type, the configuration will be

9. done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control -->
Condition Type. It is always recommended to copy an existing similar condition type & make the
neccessary changes. Here we assign Access sequence to Condition type.
Step 4:
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the
neccesary changes in new pricing procedure. Pricing Procedure is a set of condition type &
arranged in the sequence in which it has to perform the calculation. Considering the
requirement for new Pricing Procedure, the configuration will be done in spro as follows: IMG -->
Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Maintain
Pricing Procedure.
b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination
of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows:
IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure -->
Determine Pricing Procedure.
5. Condition record: Condition record is a master data, which is required to be maintained by
Core team / person responsible from the client. During new implementation, the condition
records can be uploaded using tools like SCAT, LSMW, etc.
Normal Sales Order Cycle:-
Step 1: Sales Document Type
IMG > Sales and Distribution > Sales > Sales Documents >
Sales Document Header:
1. Sales Document Type:The sales document types represent the different business
transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order type,
always copy as with reference to similar sales order. If possible use standard sales order.
2. Define Number Ranges For Sales Documents: Maintain number range with discussion with
core team.
3. Assign Sales Area To Sales Document Types:
A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to
maintain these, else Sales Order creation will give error.
B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types
to required Sales Area. This will minimize selection of Sales Order Type as per sales area.
Sales Document Item:
1. Define Item Categories: If possible use Standard Item Category. Incase if required to create
new, copy as from standard & maintain New.
2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales
Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category
Schedule Line:
1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required
to create new, copy as from standard & maintain New.
2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule
Line: Item Category + MRP Type / No MRP Type.

10. Step 2:
IMG > Logistic Execution > Shipping > Deliveries >
1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to create
new, copy as from standard & maintain New.
2. Define Item Categories for Deliveries: If possible use Standard Item Categories for Delivery
Type. Incase if required to create new, copy as from standard & maintain New.
3. Define Number Ranges for Deliveries: Ensure to maintain number range.
Step 3:
IMG > Sales and Distribution > Billing >
1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new,
copy as from standard & maintain New.
2. Define Number Range For Billing Documents: Ensure to maintain number range.
3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as
Sales Order to Billing, Deliver to Billing, etc.
he configuration differs from scenario to scenario & requirement of the client.
Interesting &important link to learn much more about configuration & business process is as
under:
Link: http://help.sap.com/
Path: SAP Best Practices --> Baseline Packages --> Based on SAP ECC 5.00 --> Select
Country: for eg, Localized for India --> Technical Information --> Building Blocks --> Select
Country for eg, India --> List of Basic Configuration & scenarios will be listed.
Select the required basic configuration / scenario. These will consist of overview, configuration
guide, business process, master data &so on.
Please Reward If Really helpful,
Thanks and Regards,