Rollout solution template SAP SD

Sales and Distribution
Createdby: Mohammed Azhad
Revisedby: Can ÖZTEKİN
Createdon:
Revisedon:
Version : 1.00
TABLE OF CONTENTS
1. Organizational Structure ..............................................................................................................7

2. Master Data ................................................................................................................................7
2.1. Material Master Data...........................................................................................................7
2.2. Customer Master Data..........................................................................................................8
3. Business Process..........................................................................................................................9
3.1. Standard Order Scenario (Local and Export)...........................................................................9
3.1.1. Quotation Creation.......................................................................................................9
3.1.2. Sales Order Creation ...................................................................................................10
3.1.3. Delivery Creation ........................................................................................................12
3.1.4. Invoice Creation.......................................................................................................... 12
3.2. B2B Scenario...................................................................................................................... 13
3.2.1. Quotation Creation .....................................................................................................13
3.2.2. Sales Order Creation ...................................................................................................14
3.2.3. Purchase Requisition and Purchase Order Creation....................................................... 16
3.2.4. Invoice Creation.......................................................................................................... 16
3.3. Returns:............................................................................................................................. 17
3.3.1. Return Order Creation.................................................................................................17
3.3.2. Return Delivery Creation ............................................................................................. 17
3.4. Credit Memo:..................................................................................................................... 18
3.5. Free of Charge (FOC) / Sample ............................................................................................ 19
3.6................................................................................................................................................ 20
3.7. Debit / Credit memo request: ............................................................................................. 20
3.8. MTO Process...................................................................................................................... 22
3.8.1. Quotation Creation and Order Entry:............................................................................ 22
3.8.2. PR and PO creation .....................................................................................................22
3.8.3. Delivery Creation ........................................................................................................22
3.8.4. Billing Creation:........................................................................................................... 22
4. ..................................................................................................................................................... 23
RevisionHistory

Version Date Modified By Description of Change
1.0 27.08.2015 Can ÖZTEKİN Initial

1. Organizational Structure
2. Master Data
2.1.Material Master Data
Item category group
Item category group determines how a material is processed in the sales order. When processing SD
documents,the systemusesthe itemcategorygrouptodetermine the item category and proposes it in
the respective document.
Qmax & Base quantity
According to this value, sales order value can be splitted. In the sales order, system will club similar
referencesintoone line andthenconsiderthemforQmax splitting, with first line within Qmax quantity
and the second line above Qmax quantity. For the first line, system gives early ‘dispatch date’. For the
second line, it gives more distant date.
Minimum Order Quantity
The minimumorderquantityreferstothe minimumquantitythe customer must order. A warning/error
message appears if the minimum order quantity is not reached during order entry. The order can be
saved for the warning message, but for error message you will not be allowed to save the order.
Checking Group for Availability Check
This filed defines the availability check strategy for the material and has two uses:
 Specifies whether and how the system checks availability and generates requirements for
materials planning.
 In flexibleplanning,defines - together with the checking rule - the different MRP element that
make up this key figure. The sum of these elements gives the key figure.
Material Group 4
Materialsfollowedbydifferent activitycode for each country. We can reach activity tables that belongs
to which material by material group information.
Material Stock Reservation
Thisfieldisusedfor controlling material whether it is managed by stock reservation or not. If this field
clicked and customer parameter also clicked in an order, sales order can be monitored by stock
reservationprocess. In this way, system check available stock and create automatic but block delivery.

2.2.Customer Master Data
CustomerAccount Group
Customer account group is a classifying feature within customer master records. The account group
determines:
 in which number range the customer account number should be;
 whether the number is assigned by the user or by the system;
 which specifications are necessary or possible in the master record.
SalesOffice
A sales office is an organizational unit in sales and distribution which is responsible for sales within a
specific geographical area.
SalesGroup
Sales groups are subdivisions of a distribution chain. It can be used for reporting purposes. It can be
assignone or more salesoffices;itcanbe assignpeople toa salesgroup.Regionswouldbe maintainedin
customer group field in customer master.
Shipping Point
An Organizational unit in Logistics that performs shipping process, the shipping point is part of plant
responsible forthe type of shipping. A deliveryisalwaysinitiatedfromone shippingpoint foreach plant,
thus, all items of a delivery belong to one shipping point. The shipping point is used as a selection
criterion for lists of deliveries and the work list deliveries.
Credit Control Area
An organizational unit represents the area where customer credit is awarded and monitored. Credit
limits and credit exposure are managed at both credit control area and customer level. This
organizational unitcaneitherbe asingle orseveral companycodes,if credit control is performed across
several company codes. One credit control area contains credit control information for each customer.
The creditmanagementwill be centralizedunder one credit control area. Credit management will then
regard the customer as valid for all company codes.

3. Business Process
3.1.Standard Order Scenario (Local and Export)
3.1.1. Quotation Creation
Beginning of the process, customer purchase order is uploaded as a quotation in SAP system. When
creationquotationdocument,thereare some pointstoconsider. At this step, users will input customer
code,ship to party code, customer PO no., customer PO date, customer requested delivery date, sales
district field for verticals, GDA no in reference field of accounting view, remarks in text field and sales
engineercode inpartnerfunction.SalesOffice,SalesGroupandpricelistcanbe changed if required else
they will come from the customer master. For the standard process, YQTN document type should be
chosen. In this case, document item category will be automatically become YQTN.
At the quotationlevelofferconsiderationforC1/ATPcalculationwill be considered but these dates will
be tentative. For C1 date calculation, system controls some parameters of the material and customer
and adds c1 date to document date of the sales order.
Sample C1 date calculation table given below;
Plant Material Group 5 Customer Group 4 Customer Group5 Item Category C1 Date
AE* D1 DST GLF YSTD 10 days
Qmax splitwill take place withthe helpof auserexit.ForQmax split,systemwill club similar references
intoone line andthenconsiderthemforQmax splitting, with first line within Qmax qty and the second
line above Qmax qty.
The pricing, payment terms, Inco terms, currency, pricelist, price group, plant, item category will be
determined from customer/material master in SAP. Prices and Co-efficient for all references in sales
order will be determined automatically from price condition master which will be maintained in SAP
system.
The total pricing will be calculated as per the procedure / steps given below;

Step Condition Description
Based on
Step
Mandatory Manual Statistical
Accrual
1 YXXX Base Price (Auto) X
2 YXXX1-2 Co-Efficient (Auto) 1
3 Sub-Total Diff (1-2)
4 YXXX3-4-5
Volume/Line
Discount (Manual)
3 X
5 Total Sum(3-4)
6 YXXX Rebate (Customer) 1 X
7 YXXX Rebate (Material) 1 X
3.1.2. Sales Order Creation
Then this quotation document is converted into actual order in SAP. In the sales order, item category
definition is very important. According to this definition, process may vary. On the other hand, item
categorywill have aschedule line categorywhichwill triggerrespective purchase requisition for further
processing. Butforthe standard salesprocess (local and export), item categories need not be changed.
In the sales order, availability check with confirmation is carried out by the system. And prices and
conditionsare determined via price lists and defined conditions. Also for special sales, it is possible to
add manual discount. Rebates are determined based on the rebate condition maintained for that
customer.
A credit limit check is done for the order value against open deliveries, unreleased bills and accounts
receivable pertainingtothe customer.While SalesOrderisbeingcreated,the systemcalculatesthe total
creditexposure andpercentage of creditlimitused.If the exposure is more than that of the credit limit
of the customer, then the delivery against the sales order is blocked.
While saving the order, system checks for incomplete data set as per the incompletion procedure for
each ordertype. Systemwill checkforPaymentterms,salesdistrict and sales office at the header level.
At item level it will check material, order quantity, Pricing, Shipping Point, and Plant. Unless these are
entered, the order will/ will not get saved.
As I explainedinthe quotationprocess, C1date will be calculatedusingadevelopedprogram, wherein a
“Z” table and a userexitwill be used.The logicwill be basedon combination of customer group and the
material offer. For example for customer group “Panel Builder” and offer “D1” the first date will be
calculatedasorder date + 7 days,similarlyforcustomergroup“Distributor”and offer “D1” the first date
will be calculated as order date + 10 days.
In SAP, ATP date is calculated based on the checking rule and the lead time defined in the material
master. The following criteria is considered while making the availability check during order entry –
Orders, Deliveries, Stock Quantities, Purchase Orders, Production Orders etc.
At Schneider, the ATP logic will work in the following way for different types of offers;
Sr Offer(Mat.Grp.5) QMAX Confirmation Logic
1 D1* < QMAX  Stock in hand: C1 date is +7 days from booking date and
ATP will be as per availability check rule.

 Stock Out and incoming PO: C1 date is +7 days. ATP will be
as per availability check rule.
 Stock Out& NoincomingPO:C1 date is+7 days.ATP will be
2 D1* > QMAX  Stock in Hand: C1 date for the above Qmax line will be
replenishment lead time & ATP date will be as per the
availability check rule.
 Stock Out and Incoming PO: C1 date is the replenishment
lead time. ATP will be as per availability check rule.
 Stock out & No incoming PO: C1 date is the replenishment
3 D2* < QMAX  Non-Stock Item with confirmed PO: C1 date is +28 days
from the order booking date and ATP will be as per
 No Confirmed PO: C1 date is +28 days. ATP will be as per
4 D2* > QMAX  In case of confirmedPO: C1 date is the replenishment lead
time. ATP will be as per availability check rule.
from the order booking date and ATP date will be as per
6 D3* > QMAX  In case of confirmed PO: C1 date is replenishment lead
 In case of No incoming or No confirmed PO: C1 date is
replenishment lead time. ATP will be as per availability
check rule.
7 D4* < QMAX  Non-StockItem:C1date is+70 daysfromthe orderbooking
date and ATP will be as per availability check rule.
 In case of Noincomingor Noconfirmed PO: then C1 will be
replenishment lead time, ATP will be as per availability
check rule.
9 D5* No Qmax
Split
 In this offer the C1 date will +150 days and ATP will be as
per availability check rule.
10 O Out of
Offer
 In this case there will be no splitting for Qmax, and the C1
date will be the replenishmentleadtime and ATP will be as
11 Partial Not
Allowed
 For partial notallowedordersthe first date/C1 date will be
the highestofferdate andwill be the same for all the lines.
12 Schedule Order Customer
requested
date
 For schedule orders C1 date will be customer requested
delivery date, however if the offer date is more than the
customer requested delivery date C1 date should be offer

should be
entered
manually
before
entering
the
material.
date.
 For Partial not allowed the C1 date should be highest offer
date or customerrequesteddate andshouldbe same forall
the lines.
On successful savingof the document,systemwill generate the salesordernumber. Orderconfirmation
can be printed wherein the data from the sales order is displayed as a printout. Before Delivery is
created,the salesordercan be cancelleddirectlybydeletingit.The otheroptionisto assign a reason for
rejection to the items. Values of lines rejected will not be considered in the order intake value. After
Deliverycreation,the systemdoesnotallow deletion of sales order unless the delivery is also deleted.
Instead the order has to be rejected after assigning a reason for rejection to the line items.
3.1.3. Delivery Creation
Deliveries are created usually for the order items for which delivery dates have reached. Future
deliveries can be selected manually; system will select all the lines up till that date. The delivery is
created with reference to the order for the quantity to be dispatched. Rescheduling can be used to
consideranychange instock while confirmingdeliverydates for an order. In case the delivery priorities
are changed manual rescheduling should not be allowed.
Whenthe outbounddeliveryiscreated,the shippingactivity,suchaspickingis initiated, and data that is
generatedduringshippingprocessingisincludedinthe delivery.Pickinglistcanbe printedforfacilitating
loading. Once the material is picked, Post goods issue (PGI) is done by sales admin officer. Packing
confirmation report to be referred before doing PGI.
MM
3.1.4. Invoice Creation
The Billing/invoice iscreatedwithreference tothe delivery order, in such case the quantity & relevant
detailsfromthe deliveryorderare copiedintobilling andpricingof the productsis copiedfrom the sales
orderintobilling.Collectivebilling is also possible when the ship to party, payer and shipping point are
the same. Once the PGI is done, the customer can be billed or invoiced for the agreed amount.
The billingdue listis run for the date / customer to list the deliveries for which PGI has been done, but
whichhave notbeenbilledasyet..Billingdocumentcanbe created single (VF01) or collectively (billing
due listVF04).On execution,the systemcalculatesthe price basedonthe agreedprice inthe sales order
and arrivesat the billingamountproportionate to the quantity that has been issued in the delivery. On
saving the document a number gets generated called the Billing No/ Invoice No.
The amounts calculated under different heads are posted to different G/L accounts such as Sale of
Traded Goods, Discounts etc, based on the Sales Organization, Customer Account assignment Group
(CopiedFromCustomerMaster),Material Accountassignmentgroup(copiedfromMaterial Master) and
the accounting key taken from the pricing procedure.

Changes such as price can be made in change mode only if the billing document is not posted to
accounts.In case itis releasedtoaccounts,thenchangescannotbe made under the same number and a
fresh billing document has to be generated after cancellation of the invoice/billing document.
CO
FI
3.2.B2B Scenario
3.2.1. Quotation Creation
Beginning of the process, customer purchase order is uploaded as a quotation in SAP system. When
creationquotationdocument,thereare some pointstoconsider. At this step, users will input customer
code,ship to party code, customer PO no., customer PO date, customer requested delivery date, sales
district field for verticals, GDA no in reference field of accounting view, remarks in text field and sales
engineercode inpartnerfunction.SalesOffice,SalesGroupandpricelistcanbe changed if required else
they will come from the customer master. For the standard process, YBQN document type should be
chosen. In this case, document item category will be automatically become YBQN.
At the quotationlevelofferconsiderationforC1/ATPcalculationwill be considered but these dates will
be tentative. For C1 date calculation, system controls some parameters of the material and customer
and adds c1 date to document date of the sales order.
Sample C1 date calculation table given below;
Plant Material Group 5 Customer Group 4 Customer Group5 Item Category C1 Date
AE* D1 DST GLF YBQN 10 days

Qmax splitwill take place withthe helpof auserexit.ForQmax split,systemwill club similar references
intoone line andthenconsiderthemforQmax splitting, with first line within Qmax qty and the second
line above Qmax qty.
The pricing, payment terms, Inco terms, currency, pricelist, price group, plant, item category will be
determined from customer/material master in SAP. Prices and Co-efficient for all references in sales
order will be determined automatically from price condition master which will be maintained in SAP
system.
The total pricing will be calculated as per the procedure / steps given below;
Step Condition Description
Based on
Step
Mandatory Manual Statistical
Accrual
1 YXXX Base Price (Auto) X
2 YXXX1 + 2 Co-Efficient (Auto) 1 X
3 Sub-Total Diff (1-2)
4 YXXX4 + 5
Volume/Line
Discount (Manual)
3 X
5 Total Sum(3-4)
6 YXXX Rebate (Customer) 1 X
7 YXXX Rebate (Material) 1 X
3.2.2. Sales Order Creation
Then this quotation document is converted into actual order in SAP. In the sales order, item category
definition is very important. According to this definition, process may vary. On the other hand, item
categorywill have aschedule line categorywhichwill triggerrespective purchase requisition for further
processing. Butforthe standard salesprocess (local and export), item categories need not be changed.
For B2B orderprocess,while creatingsales orderaccordingtoquotation,documenttype isautomatically
created YB2B. In addition, item category also YB2B.
A credit limit check is done for the order value against open deliveries, unreleased bills and accounts
receivable pertainingtothe customer.While SalesOrderisbeingcreated,the systemcalculatesthe total
creditexposure andpercentage of creditlimitused.If the exposure is more than that of the credit limit
of the customer, then the delivery against the sales order is blocked.
While saving the order, system checks for incomplete data set as per the incompletion procedure for
each ordertype. Systemwill checkforPaymentterms,salesdistrict and sales office at the header level.
At item level it will check material, order quantity, Pricing, Shipping Point, and Plant. Unless these are
entered, the order will/ will not get saved.
B2B process is different from normal sales process and delivery is not created after sales order saved.
Therefore differentschedule line category used and purchase requisition created automatically. Based
on the purchase requisition a purchase order will be given to the vendor for supply of material. The
vendor on receipt of PO will confirm the actual delivery date and deliver the material directly to the
customer. Vendor sends the invoice and based on this GRN is done by us and cost of goods sold is
captured accordingly. The material does not come in our stock.

As I explainedinthe quotationprocess, C1date will be calculatedusingadevelopedprogram, wherein a
“Z” table and a userexitwill be used.The logicwill be basedon combination of customer group and the
material offer. For example for customer group “Panel Builder” and offer “D1” the first date will be
calculatedasorder date + 7 days,similarlyforcustomergroup“Distributor”and offer “D1” the first date
will be calculated as order date + 10 days.
In SAP, ATP date is calculated based on the checking rule and the lead time defined in the material
master. The following criteria is considered while making the availability check during order entry –
Orders, Deliveries, Stock Quantities, Purchase Orders, Production Orders etc.
At Schneider, the ATP logic will work in the following way for different types of offers;
Sr Offer(Mat.Grp.5) QMAX Confirmation Logic
1 D1* < QMAX  Stock in hand: C1 date is +7 days from booking date and
ATP will be as per availability check rule.
 Stock Out and incoming PO: C1 date is +7 days. ATP will
be as per availability check rule.
 Stock Out & No incoming PO: C1 date is +7 days. ATP will
be as per availability check rule.
2 D1* > QMAX  Stock in Hand: C1 date for the above Qmax line will be
replenishment lead time & ATP date will be as per the
 Stock Outand IncomingPO:C1 date isthe replenishment
 Stock out & No incoming PO: C1 date is the
check rule.
from the order booking date and ATP will be as per
4 D2* > QMAX  In case of confirmed PO: C1 date is the replenishment
from the order booking date and ATP date will be as per
 In case of No incoming or No confirmed PO: C1 date is
check rule.
7 D4* < QMAX  Non-Stock Item: C1 date is +70 days from the order
booking date and ATP will be as per availability check

rule.
 In case of No incoming or No confirmed PO: then C1 will
be replenishmentleadtime,ATPwill be as peravailability
check rule.
9 D5* No Qmax
Split
 In thisoffer the C1 date will +150 days and ATP will be as
10 O Out of Offer  In thiscase there will be nosplittingforQmax,and the C1
date will be the replenishment lead time and ATP will be
11 Partial Not
Allowed
 For partial not allowed orders the first date/C1 date will
be the highestoffer date and will be the same for all the
lines.
12 Schedule Order Customer
requested
date should
be entered
manually
before
entering the
material.
 For schedule orders C1 date will be customer requested
deliverydate,however if the offer date is more than the
customerrequesteddeliverydate C1date shouldbe offer
date.
 For Partial not allowed the C1 date should be highest
offer date or customer requested date and should be
same for all the lines.
On successful savingof the document,systemwill generate the salesordernumber. Orderconfirmation
can be printed wherein the data from the sales order is displayed as a printout.
3.2.3. Purchase Requisition and Purchase Order Creation
MM
3.2.4. Invoice Creation
Afterthe purchase order creation and vendor send us the billing document, invoice will be sent to the
customer is created with reference to the order number; in such case the pricing, quantity & relevant
details from the sales order are copied into billing. Collective billing is also possible when the ship to
party is same.
Billing document can be created single (VF01) or collectively (billing due list VF04). On execution, the
system calculates the price based on the agreed price in the sales order. On saving the document a
number gets generated called the Billing No/ Invoice No.
The amounts calculated under different heads are posted to different G/L accounts such as Sale of
Traded Goods, Discounts etc, based on the Sales Organization, Customer Account assignment Group

(CopiedFromCustomerMaster),Material Accountassignmentgroup(copiedfromMaterial Master) and
the accounting key taken from the pricing procedure.
Changes such as price can be made in change mode only if the billing document is not posted to
accounts.In case itis releasedtoaccounts,thenchangescannotbe made under the same number and a
fresh billing document has to be generated after cancellation of the invoice/billing document.
CO
FI
3.3.Returns:
Returnsorderisusedin the systemif the customerreturnsdamagedgoods or unwanted goods that had
been delivered mistakenly.
The return causes the system to:
 Registerthe receiptof goodsusingareturnsdelivery,and post the goods to stock (for example,
blocked stock).
 Create a credit memo, after checking the goods and approving.
3.3.1. Return Order Creation
Order Processing Officer creates the returns order which is blocked. Product Manager/Sales
Director/Distribution Manager releases the document. YRTN document and item category is used for
return order.
3.3.2. Return Delivery Creation
Warehouse responsible creates returns delivery with document type YLR and reference to the returns
orderfor the returningitems;pickingisdone tostorage location,andpoststhe goodsissue (for receipt).
After the goods issue, credit memo is created.

MM
3.4.Credit Memo:
Creditmaybe grantedto a customerbecause of an incorrector damageddelivery.Forthisreason,Credit
Memo is created as the billing document based on documents created earlier. Credit Memo is created
with reference to the return delivery. Document type YG2 used for Credit Memo.
CO
FI
The following scenarios can arise;
No. Scenario Description Process Steps
1 Stock return &
replacement.
DAMAGE
During logistics material is damaged. This
material is taken in stock as return. And a
replacementisthengiven. Stock return process
to be carried out for taking return and raising
credit note. Standard order to be created to
give replacement.Return stock to be taken into
unrestricted damage at cost price.
SalesOrder(Returns)
> Delivery (Returns)
> Billing (Credit
Memo)
2 Stock return Material damaged during shipment. Customer SalesOrder(Returns)

without
replacement.
DAMAGE
does not want a replacement of the same.
Returnprocessto be carriedout and credit note
to be raised. Credit note to be created with
reference to inbound delivery.
> Billing (Credit
Memo
3 Return (logistics) In this process material delivered wrongly is
taken back based on logistics decision and a
credit note is raised. Returns process to be
carried and credit note to be raised against
inbound delivery.
SalesOrder(Returns)
> Billing (Credit
Memo
4 Return
(commercial)
In this process customer order 50 we book 70
and deliverandbill 70. We issue credit note and
take back extra 20. Returns process to be
carried and credit note to be raised against
inbound delivery.
SalesOrder(Returns)
> Billing (Credit
Memo
5 Excess Delivery
Return of Goods
Excess material 70 delivered against 50 and
customerwantsto return the excess stock of 20
which is not accounted in the system. These
materials are not accounted for in the books.
Material taken back outside system
SalesOrder(Returns)
> Billing (Credit
Memo
3.5.Free of Charge (FOC) / Sample
First of all manual sales order is created. As with other sales process, we use different document type
(YFOC) and item category (YFOC) for FOC orders. Material entered would be either a text item or a
standard item.
Standard delivery dates are determined and it is possible to update it manually. In this process, prices
and conditions are not applicable.

MM
If required,orderreasonforbillingcanbe maintained. Forcustomspurpose invoice outputwill have the
cost price of the material.
CO
FI
3.6.
3.7.Debit / Credit memo request:
Debit Memo request is created when the customer pays less or is liable to pay to us for some valid
reason,we raise a debitmemorequest. YDBN documenttype anditemcategoryisusedforDebitMemo
request.
Once the debit memo request is approved the debit memo is created and the relevant accounting
posting happens automatically.
Whenwe are liable topaythe customer for some valid reason (like goods return, price difference etc),
we raise a credit memo request. YCRN Document type and item category is used for Credit Memo
request.
Once the credit memo request is approved the credit memo is created and the relevant accounting
posting happens automatically.
CO

FI
The following scenarios can arise;
Sr
No.
Scenario Description Process Steps
1 Short shipment-Issue
of Good Will Stock.
SHORTAGE
Goodswere deliveredbutfoundthat there is
shortage of material.Inthiscase if material is
physically in stock create Proforma invoice
and delivery outside the system. However if
material isnotin stockthencreate FOC order
for procurement and subsequent delivery.
Sales Order (Credit
Memo Request) >
Billing(Credit Memo)
2 Short shipment-Find
& Replace.
SHORTAGE
Short shipment delivered. Material is in
stock; create proforma invoice and delivery
outside system.
3 No return only credit
note. DAMAGE
Material is damaged during shipment.
Customerdoesnotwanta replacement. Cost
of material is less than the delivery cost so
we don’t carry out returns and raise a credit
note directly. Create credit memo request
and raise a credit note.
Sales Order > Billing
4 No return but
replacement on
Good Will. DEFECT
Material delivered is found to be defective
after some time we don’t want to take the
return, however we give a replacement as a
Good Will. Separate order to be created to
issue FOC goods and record the cost as
quality cost.
5 Price-Wrong
Discount
Wrong discount given for a customer order.
Credit/Debit note to be raised for those
orders.
6 Freight Rates over
charged
Freight already charged now we are re-
imbursing the same. Customer charged
wrongly on freight. (Ex. Freight on 100kg
shipmentis250, but we charged 500.) Create
a credit note.
7 Freight Rates not
charged or under
charged
Freightnotchargedto customer but we have
to pay. Create a debit memo request and
raise a debit note for that customer against
that order.

8 Customs charges Customer paid duty as 200 AED but the
actual value is 100 AED. So we need to give a
credit note to the customer.
9 Excess Delivery Sales
of Goods
Excess material delivered and customer
wantsto purchase these excessstocks.These
materialsare notaccounted for in the books.
Create Order created and delivered and
billed outside system.
3.8.MTO Process
3.8.1. Quotation Creation and Order Entry:
Approved quotation is imported as quotation in SAP, at this step items above Qmax quantity will be
splitted into two lines. Similar line items need to be clubbed and then considered for Qmax split. This
quotationisthenconverted into actual order in SAP. At the order stage, the item category for all items
that are to be MTO ischangedmanually.Thisitemcategoryishavingaschedule line categorywhich then
triggersan MTO purchase requisition for procurement. The first confirmed dates are calculated using a
user exit, while ATP dates are determined from the ATP logic in material master.
3.8.2. PR and PO creation
MM
3.8.3. Delivery Creation
Ordersinwhichitemsare due for deliverycanthenbe delivered individually or collectively, also partial
allowedornotallowedcanalsobe handleduponagreementwiththe customer.Once deliveryiscreated
the picking and packing process gets started. A transfer order is created by warehouse for picking and
packing. After packing is completed “Post Goods Issue” is done to complete the delivery process.
3.8.4. Billing Creation:
All orderitemsforwhichdeliveries that have been completed can be invoiced. The billing document is
determinedautomaticallyfromthe salesdocumenttype,howeveritispossibletochange the billingtype
manuallyif needbe.The momentthe billingdocumentissaved,anaccounting document with revenue,

discount and taxes if any is created automatically. Creation of accounting document means the above
values have actually been posted into FI for settlement.
FI
CO
4.

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