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60177280 basics-of-sap-sd

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60177280 basics-of-sap-sd

  1. 1. SAP R/3 Sales and Distribution: Subject Listing and Exercises 1 INTRODUCTION TO SAP R/3 AND THE ERP CONCEPT................................................4 1.1 VIEWS WITHIN SAP R/3............................................................................................................4 1.2 R/3’S SALES AND DISTRIBUTION MODULE...............................................................................5 1.3 SD ORGANIZATIONAL STRUCTURES IN R/3.............................................................................6 2 CREATE A BASIC ORDER IN R/3........................................................................................7 2.1 ORDER TYPES.............................................................................................................................8 2.2 CHECKING AVAILABLE STOCK.................................................................................................8 2.3 CREATE A SECOND SALES ORDER............................................................................................9 2.4 RE-CHECKING AVAILABLE STOCK.........................................................................................10 3 CREATING DELIVERIES.....................................................................................................11 3.1 PICKING, PACKING, AND POST GOODS ISSUE IN DELIVERIES..............................................13 3.2 CHECKING AVAILABLE STOCK...............................................................................................15 4 PARTNER FUNCTIONS........................................................................................................16 4.1 EXAMINE BUSINESS PARTNERS...............................................................................................16 5 BILLING..................................................................................................................................17 5.1 CREATING A DELIVERY-RELATED BILL................................................................................17 6 APPLYING PAYMENTS.......................................................................................................18 6.1 APPLY A CUSTOMER PAYMENT..............................................................................................18 7 FREE ITEMS...........................................................................................................................20 7.1 INCLUDE A FREE ITEM............................................................................................................20 8 EXAMINING TRANSACTION TYPES IN THE IMG........................................................22 8.1 VIEWING THE ORDER TYPE, OR............................................................................................22 8.2 CHANGING THE BEHAVIOR OF THE STANDARD ORDER........................................................23 1
  2. 2. 9 CASH SALES AND RUSH ORDERS...................................................................................24 9.1 CREATE A CASH SALE ............................................................................................................24 9.2 BILLING FOR A CASH SALE.....................................................................................................25 9.3 RUSH ORDERS..........................................................................................................................26 9.4 CREATE A RUSH ORDER..........................................................................................................26 9.5 BILLING A RUSH ORDER.........................................................................................................27 10 INQUIRIES AND QUOTATIONS.......................................................................................29 10.1 CREATING AN INQUIRY..........................................................................................................29 10.2 CREATE AN ORDER REFERENCING THE INQUIRY...............................................................30 10.3 PARTIALLY REFERENCE A SECOND INQUIRY .....................................................................31 10.4 CREATING A QUOTATION......................................................................................................32 10.5 CREATE AN ORDER REFERENCING THE QUOTATION..........................................................33 10.6 PARTIALLY REFERENCE A SECOND QUOTATION ...............................................................34 11 PACKING IN DELIVERIES................................................................................................36 12 DELIVERY DUE LISTS.......................................................................................................37 13 QUANTITY CONTRACTS AND SCHEDULING AGREEMENTS................................40 13.1 WHAT ARE QUANTITY CONTRACTS.....................................................................................40 13.2 CREATE A QUANTITY CONTRACT.........................................................................................40 13.3 WHAT ARE SCHEDULING AGREEMENTS...............................................................................43 13.4 CREATE A SCHEDULING AGREEMENT..................................................................................43 13.5 TESTING THE SCHEDULING AGREEMENT.............................................................................46 14 PRICING................................................................................................................................47 14.1 PRICING PROCEDURE.............................................................................................................47 14.2 CONDITION TYPES.................................................................................................................48 14.3 CONDITION TYPES AS DEFINED IN THE IMG......................................................................49 14.4 ACCESS SEQUENCES AND CONDITION TABLES ...................................................................50 14.5 HOW PRICING PROCEDURES ARE USED IN ORDERS ...........................................................52 15 CUSTOMER COMPLAINTS: RETURNS AND CREDIT MEMOS................................54 15.1 RETURNS.................................................................................................................................54 15.2 RETURN DELIVERY................................................................................................................55 15.3 CREDIT MEMOS.......................................................................................................................57 15.4 BILLING .................................................................................................................................59 2
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  4. 4. 1 INTRODUCTION TO SAP R/3 AND THE ERP CONCEPT • The concept of Enterprise Resource Planning (ERP) software. ERP is a form of Client/Server software that integrates different functional areas. These include: • Sales and Distribution (SD) • Materials Management (MM) • Production Planning (PP) • Financial Accounting (FI) • Controlling (CO) • Asset Management (AM) • Quality Management (QM) • Human Resource Management (HR) • Reporting, and others • The architecture of R/3-based systems is an interesting contrast to typical organizational 2-tier and 3-tier systems. The functionality and integration in R/3 reduces the need for extensive interface development between different functional software, as in many older systems. • R/3 achieves integration of different business processes through the following ways: • Integration using a single database and data model; • Integration between different applications i.e., the functional modules; • Integration with 3rd -party software and desktop applications, such as Access, Word, and Excel; and • Integration using object-oriented Business APIs (or BAPIs). 1.1 VIEWS WITHIN SAP R/3 • There are several views of SAP R/3, from both the developers’ and the users’ perspectives. These views include the: • Functional view: which is enables the user to access and use the functions within R/3. 4
  5. 5. • The “Configuration” view: which is mostly accomplished through R/3’s Implementation Guide (IMG). This is used primarily used by R/3 consultants in configuring R/3. • The ABAP Workbench: is used by developers to create code routines in the ABAP language that add new functionality to R/3. 1.2 R/3’S SALES AND DISTRIBUTION MODULE • The Sales and Distribution Module covers the path of an order from initiation (and even pre-initiation), to order fulfillment. All the different processes of the order life-cycle are linked within SD and to relevant processes outside SD e.g., Financial Accounting and Materials Management. Characteristics of SD are: • Multilingual/Multicurrency: Several languages can be used. Conversion between currencies is automatic and connecting to SAP's realtime currency rate database in Germany enables operational use. • Customization. R/3 allows you to customize the product to meet the specific requirements of your organization. This is done through the IMG (Implementation Guide) and other functions. • Pricing Flexibility. In SD, you can create complex pricing schemes that are dependent on customers, goods sold, special promotions etc. Rebate processing options are also very sophisticated and comprehensive. • Simple Order Entry. The user enters basic order details all on one window. From this window, there is simple access to all the levels of the order, namely header, item, and schedule line information. • Comprehensive Reporting. The Sales Information System (SIS) allows data to be stored, consolidated, and reported upon by the user in a variety of formats. • Flexible Batch Processing of Orders. Orders, deliveries, shipments, invoices and other sales documents can be generated in batch form, based on order types (e.g., incomplete orders) or customer, or material. Processing of batched orders can also be made to run as background tasks to balance processing load. 5
  6. 6. 1.3 SD ORGANIZATIONAL STRUCTURES IN R/3 R/3 is extremely configurable and able to model many types of organizational structure. However, these must be defined in R/3 terms, involving Business Process Reengineering (BPR) and organizational restructuring (or redefining). The following are R/3's SD-related organizational structures. • Client. This is one instance of R/3, representing a company. Usually, an organization will have a minimum of 3 active clients. All clients can be active simultaneously. They are: 1. The Development Client: This client is an instance of the organizational processes and data that is used during development. 2. The Test Client: The development client is 'transported' to the Test Client, a separate instance, where it is tested. 3. The Production Client: Following testing, the test client is migrated to the production client, which is the one that users see and use. • Company Code. A company code is an independent accounting unit that represents an individual company. It has a set of Profit/Loss Statements and one balance sheet. • Sales Organization. This represents a selling unit, as defined by R/3. That is, the organizational unit responsible for a sale, returns, and product liability. A company code can have several sales organizations. • Distribution Channel. This is the means by which the product is supplied to the customer. Examples of distribution channels are wholesale, retail, catalog, web-based, etc. • Division. This represents a company's product line. So for example, personal computers might represent one product line, minicomputers another. However, corporations have great flexibility in defining divisions and other elements. • Sales Area. A sales area is a unique combination of sales organization, distribution channel, and division. • Plant. A plant is a location where goods are manufactured or stored. A plant can be used by several sales areas. Other organizational units, such as salesgroups will be defined later. 6
  7. 7. 2 CREATE A BASIC ORDER IN R/3 The path is: LogisticsSales and Distribution  SalesOrderCreate (Transaction Code: VA01) Order Type OR Sales Organization 3000 Distribution Channel 10 Division 00 Hit <Enter> to proceed to the order entry screen. GG represents the instructor- assigned number of your group. Group 1 is 01, group 2, 02, and so on. Customer # 8GG Order Date today's date Customer PO# po-ex1-GG Item 1 Material R-1150 Item 1 Quantity 10 Item 2 Material R-1151 Item 2 Quantity 5 In this order, the customer is ordering a quantity of 10 of material R-1150 and 5 of material R-1151. The order date is today and the purchase order number is assigned by the customer. R/3 performs no checks on the PO#. • Click on <Header> to see details at the header level of the order, such as the total price, sold-to party, the document currency, and the pricing structure for the entire order. • Click on <Item> to see details of each item in the order. Data includes the material number, item pricing, plant and storage locations, and the ship-to address. • Click on <Schedule Lines> to see details of multiple schedule lines for an item. Information provided includes delivery dates for each part of the item quantity e.g., 10 items now and 10 later. It shows schedule line quantity and confirmed quantity also. 7
  8. 8. Click on the <Save> Button to save the order. Record the assigned order #. 2.1 ORDER TYPES There are several types of orders in R/3. In addition, the systems analyst can create customized order types that behave in desired ways. The most common type of order is the OR order type or standard order. Another order type is the CS order type, which is a cash sale. Each order behaves differently in regard to delivery times, billing, payments etc. 2.2 CHECKING AVAILABLE STOCK The various modules of SAP R/3 are interconnected, so that changes made in one module "ripple though" to other modules. Checking available stock before and then after the order is made is a way to demonstrate these interconnections. To do so, use the path: LogisticsMaterials ManagementInventory ManagementEnvironmentStockStock Overview (Transaction Code: MMBE) Field Value Material R-1150 Plant 3800 How much stock is available for orders and how much stock is scheduled for delivery? 8
  9. 9. 2.3 CREATE A SECOND SALES ORDER The objective of this exercise is to create a sales order, comprising two items: R- 1150 and R-1151. (GG is the group number.) LogisticsSales and Distribution  SalesOrderCreate (Transaction Code: VA01) Field Value Sales Order OR (standard order) Sales Organization 3000 Distribution Channel 10 (final sales) Division 00 (cross division) In the materials form, enter the two materials and quantities (15 and 5): Material Quantity R-1150 15 R-1151 5 1. Click on the save icon to save the sales order. 2. Record the sales order number that appears at the bottom of the window. 3. Using the path: Header  Business Data, record the payment terms. 4. Using the path: Item  Business Data, record the plant and route. 5. Using the path: Item  Schedule Lines, record the scheduled delivery dates. 6. View the document flow using the path: Environment Document Flow. A Plant is a place where goods are made or distributed, while a Shipping Point is a point from which goods leave the plant for the customer. It is also the start of the route. Each plant can have many shipping points. 9
  10. 10. 2.4 RE-CHECKING AVAILABLE STOCK Create and/or go to an alternate session to re-check inventory. Checking available stock after the order is possible using the path: LogisticsMaterials ManagementInventory Management  Environment  StockStock Overview (Transaction Code: MMBE) Field Value Material R-1150 Plant 30GG • How much stock is now available for orders and how much stock is scheduled for delivery? Does this differ from your initial inventory levels and why? 10
  11. 11. 3 CREATING DELIVERIES In the Customer Order Management (COM) Cycle, there are two ways to create a delivery after the order is created. You may proceed through the main menu: LogisticsSales and Distribution Shipping and Transportation  OutBound DeliveryCreate  Single Document  With Reference to a Sales Order (Transaction Code: VL01N) Alternatively, within the order, go to: Sales Document  Deliver This takes you to the delivery screen. There are three fields that must be entered, namely, shipping point, selection date, and the order number. Field Value Shipping Point 30GG Selection date {10 days from today} Sales Order Order No. {should default to order #} The selection date is the date up to which you are looking for a delivery to be made from the order. The standard order type in R/3, OR, is configured with a delivery time of seven days, so the date must be pushed out to "catch" the order's delivery. The next activities in the creation of the delivery are to save and record the delivery, and then examine the document flow of the order to see how the delivery has been recorded by R/3. 1. Click on the <Save> Button to save the delivery. 2. A delivery number is generated and displayed at the bottom of the screen. Record this number. 3. Create and/or switch to another session. 4. Pull up the order being processed using its order number: 11
  12. 12. Re-examine the order using the following path: LogisticsSales and Distribution  SalesOrderChange (Transaction Code: VA02) 5. Go to the document flow for the order: EnvironmentDocument Flow . What is the current status of the order? What is the status of the delivery? The order should be Completed, while the Delivery should be labeled: Being Processed. 12
  13. 13. 3.1 PICKING, PACKING, AND POST GOODS ISSUE IN DELIVERIES After the delivery has been created, three activities are needed to complete the delivery process within R/3. They are: 1.Picking. Here the factory personnel physically transfer the ordered goods out of their storage location in readiness for shipping to the customer and record this activity within R/3. Picking is mandatory for deliveries. 2.Packing. Some materials require packing within boxes, cartons, or other enclosures prior to shipment to the customer. Packing within R/3 documents this activity. This process is optional, as not every item requires packing. 3.Post Goods Issue. This is the last of the three stages and occurs when the goods leave the plant through a shipping point. At this stage, an accounting document is created that is used for the next stage in Order Management, Billing. Post Goods Issue is mandatory for deliveries. • Return to your delivery screen using the following path: LogisticsSales and Distribution Shipping and Transportation  OutBound DeliveryChange (Transaction Code: VL02N) • Go to the picking screen using the following path: Subsequent Functions Transfer Order • Hit <Enter> • Check the following pick quantities in the Transfer Order: Material Pick Quantity R-1150 15 R-1151 5 • Click on <Enter> and then <Save>. • In another session, pull up the order and examine document flow using the path: Environment Document Flow. What is the new activity shown in the document flow? 13
  14. 14. • Return to the Delivery in the previous session. Use Deliveries  Change Delivery. • Click on <Post Goods Issue>. Write down the document number for the accounting document generated. 14
  15. 15. 3.2 CHECKING AVAILABLE STOCK Checking available stock after the delivery is completed to check if the amount of stock slated for delivery has changed. To do so, use the path: LogisticsMaterials ManagementInventory Management  Environment  StockStock Overview (Transaction Code: MMBE) Field Value Material R-1150 Plant 30GG • How much stock is now scheduled for delivery? 15
  16. 16. 4 PARTNER FUNCTIONS R/3 refers to entities involved in a transaction with your company as partners or 'business partners'. Each customer may represent several functions, each of which is specific to accomplishing part of the transaction. These 'personalities' or functions are thereby referred to as partner functions. The different partner functions are stored within the customer master record. There are four (4) business partners that are mandatory for a customer, namely: • Sold-to party. The sold-to party (or partner function)is the central partner function through which all the other functions are referenced. The sold-to party is the party that places the order and to whom sales and product prices are recorded against (e.g., for reporting purposes). • Ship-to Party. The ship-to party is the party (and address) to whom the order is shipped. Can the ship-to differ from the sold-to? Yes, the ship-to party could be at a totally different location e.g., at a shipping/receiving location. • Bill-to Party. The bill-to is the party to whom the bill is sent. Again, the bill-to can differ from the sold-to and ship-to. For example, it might be the accounts payable department at the customer's company. • Payer. The fourth mandatory partner is the payer. The payer is the party that pays the bill. This could again be an entity distinct from any of the three parties, with a unique address. 4.1 EXAMINE BUSINESS PARTNERS This exercise involves identifying the business partners for customer 13GG. To do so, create and/or use a new session and use the path: LogisticsSales and Distribution OrdersChange Order (Transaction Code: VA02) Menu: <GoTo>  Header  Partner • Examine and list the four major partner functions and any others that appear. Use the matchcode to see the whole range of partner functions. 16
  17. 17. 5 BILLING The next stage in the COM (Customer Order Management) Cycle is billing. In R/3, it is possible to perform order-related billing, delivery-related billing and other types of billing. In billing, you can also: • Cancel created bills, • Issue debit and credit memos, • Generate pro-forma invoices, • Issue rebates, and • Transfer accounting information to the FI (Financial) module. 5.1 CREATING A DELIVERY-RELATED BILL The object of this exercise is to create a delivery-related bill for the customer and transfer it to FI. The steps are as follows: • In one session, pull up the order and examine document flow using the path: Environment Document Flow. Note the different processes shown in the COM cycle. • Proceed to delivery related billing using the following path: Logistics  Sales and Distribution  Billing  Billing Document  Create. (Transaction Code: VF01) This brings up the Create Bill screen, with the delivery number shown in the leftmost column. This is the column that holds the name of the document from which the bill is created (in this case, the delivery). • Click on <Enter> to go to the bill creation screen. On this screen, the amount of the bill and the items billed are displayed. • On the bill creation screen, click on the <Save> button to create the invoice. The bill number is shown at the bottom of the screen. • Return to the order screen and check the document flow one more time. What has changed? {Answer: A bill has been generated for the order.} 17
  18. 18. 6 APPLYING PAYMENTS The final stage in the COM Cycle is payments. Payments are not applied in the SD module, but more appropriately, in Financial Accounting (FI). In the FI module, payments may be applied to one invoice or to several. Overpayments and underpayments are also handled in different ways, as defined in configuration. 6.1 APPLY A CUSTOMER PAYMENT • To apply a customer payment, use the following path: Accounting  Financial Accounting Accounts Receivable  Document Entry Incoming Payment. (Transaction Code: F-28) • This takes you to the <Post Incoming Payments: Header Data> screen and form. • Enter the following data: Field Value Document Date {Today’s date} Document Type DZ (customer payment) Company Code 3000 Posting Date {Today’s date} Currency/Rate USD Bank Data: Account 100000 (dummy Checking Account) Value Date {Today’s date} Open Item Selection: Account 8GG This takes you to the <Post Incoming Payments: Process Open Items> screens. This shows the list of open items, i.e., open invoices requiring payment. There should be one invoice requiring payment in the Open Items list. If there is more than one invoice listed, make all the other invoices inactive in order to pay on the relevant invoice. The process is as follows: • In the Open Items list, click on the line with the item to be made inactive. 18
  19. 19. • Click on <Select Beginning> and then on <Select End>. Finally, click on the <Inactive> Button. • Repeat the above process until only the desired open item remains active. The total in the Assigned field should now equal the total of the open item, and the Number of Items should equal 1. • The Amount Entered should equal the value in Assigned. If it does not, the difference will appear in Not Assigned. A negative number means that the customer has underpaid and this difference is still owed. A positive number represents an overpayment, which is owed to the customer. • Enter the same value in Difference Postings. This represents an additional customer payment or a refund to make up the difference. 19
  20. 20. 7 FREE ITEMS In sales, promotions are frequently run that give the customer a free item for the purchase of a fixed number of items. In addition, sales representatives may have the latitude to include a free item with a substantial purchase by a customer. Sample items might also be included as free items within a purchase. R/3 allows the salesperson to manually include a free item within order entry. This is done by “attaching” the free item to another, paid item in the order using the <higher-level item> field. In the example below, one free item, the MSI CD- RW Drive(Material R-1151) is given free with the purchase of an MSI CD-ROM Drive (Material R-1150). 7.1 INCLUDE A FREE ITEM • To include a free item in a purchase, use the following path: Logistics Sales and Distribution  Sales  Order  Create. (Transaction Code: VA01) • Enter the following data: Field Value Order Type OR {standard order} Sales Organization 3000 Distribution Channel 10 Division 00 • Hit <Enter> • Enter the following data: Field Value Customer # 8GG Order Date today’s date Customer PO# po-ex2-GG Item 1 Material R-1150 Item 1 Quantity 1 20
  21. 21. • Use the path, Overview Double-line Entry to go to an alternative screen for order entry. • For the second material, enter the item number for the first material (in this case, 10), in the higher-level item field. For the material, enter R-1151 and for the quantity, enter 1. • Hit <Enter> Viewing the order shows that no pricing has been performed for the additional, free item. To view pricing, click on the second item check box, and click on the Pricing icon. Confirm that the price is $0. • Save the order and record the order number. 21
  22. 22. 8 EXAMINING TRANSACTION TYPES IN THE IMG The standard order we have used in the preceding sections represents a sales document that behaves in a specific way and has certain attributes. For example, when an order (type OR) is created, a delivery interval of 7 days is proposed. When the order is saved also, the assigned order number falls within a specific range. This range is also different from number ranges used by deliveries (LF) and other document types. These ranges are stored within a schema of document types in the IMG. This chapter examines the structure of the order type, OR, as stored in the IMG to better understand its configuration details and how they may be reconfigured in response to business requirements. 8.1 VIEWING THE ORDER TYPE, OR • To view the structure of the order type, use the following path: Tools AcceleratedSAP  Customizing  Project Management  SAP Reference IMG (Transaction Code: SPRO) This takes you into the customizing area of R/3, where many of the maintenance and configuration options of R/3 are to be found. The SAP Reference IMG represents the initial unconfigured state of R/3’s structures and document types and is not changed in configuration. The SAP Reference IMG is modified to meet the unique needs of the organization. • To examine the structure of the OR document, use the path: Sales and Distribution  Sales Documents  Sales  Sales Document Header  Define Sales Document Types • Click on <Position> and Type OR in the Sales Document Type field. • Hit <Enter> and the OR document is listed as the first entry. • Click to the left of the OR entry to highlight the entire line. 22
  23. 23. • Click on GoTo  Details to go to the OR entry. The shown view illustrates various elements of the standard order document and its behavior. The entries are arranged into eight major groups, as listed below: 1. Number Systems. 2. General Control. 3. Transaction Flow. 4. Scheduling Agreement 5. Shipping. 6. Billing. 7. Requested Delivery Date/Pricing Date. 8. Contract. These configuration groups specify various options that can be changed to conform to the organization’s specific processes and activities. For example, <Item No. Increment> in Number Systems sets the increment by which subsequent line item numbers increase e.g. an increment of 10 will result in line items 10, 20, 30 and so on. Also, in General Control, <Check Credit Limit> for example determines whether the limit of credit is checked for this order type. The credit group is also specified as are export license details and checking of the line item’s division. The next exercise demonstrates how changing the order configuration in the IMG changes the behavior of the order. 8.2 CHANGING THE BEHAVIOR OF THE STANDARD ORDER In this exercise, we have the following business scenario: Due to increased efficiencies in managing materials, the business can now deliver standard orders in 6 days and need the order type to reflect this. In addition, to retain consistency with the old system, the business wants items to be listed in the order in incremens of 5, not 10, as in the default. 23
  24. 24. 9 CASH SALES AND RUSH ORDERS Orders we have entered until now been the standard order type, OR. This has a preset delivery duration, such as seven days. However, R/3 also includes other order types to handle many other types of transactions, such as credit memos, returns, product exchanges, and cash purchases. In this exercise, we will use the cash purchase order type, CS as the order type for our transaction. In a cash transaction, the customer must have an immediate delivery, as they will be leaving the store with the ordered material. Therefore, a cash transaction automatically generates a delivery, unlike the standard order type, OR. 9.1 CREATE A CASH SALE To enter a cash order, create a new session or backtrack to the top of R/3’s menu structure and use the following path: LogisticsSales and Distribution  SalesOrderCreate (Transaction Code: VA01) Field Value Order Type CS Sales Organization 3000 Distribution Channel 10 Division 00 Hit <Enter> to proceed to the order entry screen. Field Value Customer # 8GG Order Date today's date Customer PO# po-ex3-GG Item 1 Material R-1150 Item 1 Quantity 1 24
  25. 25. In this particular order, the customer is ordering a quantity of 1 of material R- 1150. The order date is today. Hit <Enter>. What message does R/3 give at the bottom of the screen? • R/3 creates a delivery automatically with the order. The delivery number is given, along with the order number. • Proceed through the main menu on a different screen to examine the delivery. Use the following path: LogisticsSales and Distribution Shipping and Transportation  OutBound DeliveryChange (Transaction Code: VL02N) • Go to <OverviewPicking> and pick one item, corresponding to the order. Click on <Post Goods Issue> • At this stage, work in the delivery phase is completed. Billing follows. 9.2 BILLING FOR A CASH SALE Billing works much differently in a cash sale (BV) than in a standard order. In the latter case, delivery-based billing is used as freight charges and other transport- related charges are required from the delivery. However, with a cash sale, an invoice is automatically produced. This is in fact, a cash receipt for the customer. To bill, use the following path: Logistics  Sales and Distribution  Billing  Billing Document  Create. (Transaction Code: VF01) This brings up the Create Bill screen, with the delivery number shown in the leftmost column. This is the column that holds the name of the document from which the bill is created (in this case, the delivery). • Change the delivery number to the order number for order-related billing. 25
  26. 26. • Click on <Enter> to go to the bill creation screen. On this screen, the amount of the bill and the items billed are displayed. • On the bill creation screen, click on the <Save> button to create the invoice. The bill number is shown at the bottom of the screen. • Return to the order screen and check the document flow one more time. What has changed? {Answer: A bill has been generated for the order.} 9.3 RUSH ORDERS Another order that is used within R/3 is the rush order, RO. This order is used when a company must have the material right away, but wants the billing process to follow the regular pattern. It is different from the cash order, BV, because, although the material is picked up right away and a delivery created, no receipt is generated for the customer. Billing occurs later using individual billing or a billing due list. In this exercise, we will use the rush order type, RO as the order type for our transaction. 9.4 CREATE A RUSH ORDER To enter a rush order, create a new session or backtrack to the top of R/3’s menu structure and use the following path: LogisticsSales and Distribution  SalesOrderCreate Field Value Order Type RO Sales Organization 3000 Distribution Channel 10 Division 00 Hit <Enter> to proceed to the order entry screen. 26
  27. 27. Field Value Customer # 8GG Order Date today's date Customer PO# po-ex4-GG Item 1 Material R-1151 Item 1 Quantity 3 In this particular order, the customer is ordering a quantity of 3 of material R- 1151. The order date is today. Hit <Enter>. What message does R/3 give at the bottom of the screen? • R/3 creates a delivery automatically with the order. The delivery number is shown, along with the order number. • Proceed through the main menu on a different screen to examine the delivery. Use the following path: LogisticsSales and Distribution ShippingDeliveriesChange Delivery • Go to <OverviewPicking> and pick the item that corresponds to the order. Click on <Post Goods Issue> • At this stage, work in the delivery phase is completed. Billing follows. 9.5 BILLING A RUSH ORDER Billing works similarly to that of a cash sale, BV, in that order-based billing is used. Freight charges and other transport-related charges are not required as the customer already picked up the item. However, unlike a cash sale, no invoice is automatically produced. To bill, use the following path: Logistics  Sales and Distribution  Billing  Billing Document  Create. (Transaction Code: VF01) 27
  28. 28. This brings up the Create Bill screen, with the delivery number shown in the leftmost column. This is the column that holds the name of the document from which the bill is created (in this case, the delivery). • Change the delivery number to the order number for order-related billing. • Click on <Enter> to go to the bill creation screen. On this screen, the amount of the bill and the items billed are displayed. • On the bill creation screen, click on the <Save> button to create the invoice. The bill number is shown at the bottom of the screen. • Return to the order screen and check the document flow one more time. What has changed? {Answer: A bill has been generated for the order.} 28
  29. 29. 10 INQUIRIES AND QUOTATIONS In the normal course of selling, customers contact the organization to make inquiries or to request quotations for specific quantities of materials. In R/3, there are several transaction types used to record these transactions. The purpose of having inquiry and quotation transaction types is twofold. First is simply to record the specific customer transaction. Second, if customers place orders in the future, information from inquiries and quotations may be imported into the order, reducing data entry. Third, customers may use quotation to obtain guaranteed pricing on quoted materials. Lastly, they provide a means of evaluating future income from sales represented by past inquiries and quotations. In the following exercises, we examine the two transaction types. 10.1 CREATING AN INQUIRY To create an inquiry, create a new session or backtrack to the top of R/3’s menu structure and use the following path: LogisticsSales and Distribution  SalesInquiryCreate (Transaction Code: VA11) Field Value Inquiry Type IN Sales Organization 3000 Distribution Channel 10 Division 00 Hit <Enter> to proceed to the inquiry data entry screen. Field Value Customer # 8GG From Date today's date To Date end of the month Item 1 Material R-1150 Item 1 Quantity 1 29
  30. 30. In this transaction, the customer is placing an inquiry for a quantity of 3 of material R-1150 (a CDROM Drive). • Examine the PRB field. What probability is assigned to the inquiry? • Examine the Expected Order Amount field. How is this number calculated? {It is the probability multiplied by the inquiry total $ amount.} Click on the <Save> Button to save the inquiry. Record the assigned inquiry #. 10.2 CREATE AN ORDER REFERENCING THE INQUIRY Some time after making an inquiry, the customer may call back to place an order that may be based on the inquiry. They may not remember their inquiry number. In that case R/3 automatically brings up stored inquiries (and quotations also). In the next example, we will assume that the customer remembers the inquiry number. To create an order that references the inquiry, backtrack to the top of R/3’s menu structure and use the following path: LogisticsSales and Distribution  SalesOrderCreate with Reference toInquiry (Transaction Code: VA01) • When prompted, enter the inquiry number. • Click on <Copy> to copy all the items and quantities into the order. • When the order form comes up, make sure the material R-1150 has been pulled up with a quantity of 1. • Enter the purchase order number, po-in1-GG. • Click on the <Save> Button to save the inquiry. Record the assigned inquiry#. • Check the document flow for the order. What does it show? {It shows that the order was created from the Inquiry.} 30
  31. 31. 10.3 PARTIALLY REFERENCE A SECOND INQUIRY Return to the <Inquiry> option in the Sales screen and create another inquiry using the following data. Field Value Customer # 8GG From Date today's date To Date end of the month Item 1 Material R-1151 Item 1 Quantity 3 Item 2 Material R-1150 Item 2 Quantity 2 In this case, the customer is placing an inquiry for 3 CDROM drives and 2 CD- RW Drives. The object of this exercise is to determine the effect of partially referencing an inquiry. Create an order that partially references the inquiry using the following path: LogisticsSales and Distribution  SalesOrderCreate with Reference toInquiry (Transaction Code: VA01) • When prompted, enter the inquiry number. • Click on <Copy> to copy all the items and quantities into the order. • When the order form comes up, change the material quantity for material; R- 1151 from 3 to 2, as the customer indicates they now require only 2 headlights. • Check the box to the left of the Material 2 (CR-RW Drive), and select <Edit> and <Delete Line Item>. This ensures the second material is not referenced. • Enter the purchase order number, po-in2-GG. • Click on the <Save> Button to save the inquiry. Record the assigned inquiry#. 31
  32. 32. Performing these actions means that the first line item in the Inquiry has only been partially referenced. There should be a quantity of 1 remaining in that line item. The second material (the CR-RW Drive) has not been referenced at all. To attempt to reference the inquiry again, create another order that references the inquiry using the path: LogisticsSales and Distribution  SalesOrderCreate with Reference toInquiry (Transaction Code: VA01) • When prompted, enter the inquiry number. • Click on <Copy> to copy all the items and quantities into the order. • Did the first material come up? • Did the second material come up? In R/3, partially referencing an inquiry’s line item completely references that line item, regardless of remaining quantities. However, other line items in the inquiry may be referenced if they have never been referenced before. This behavior is unique to inquiries, as we will see in the next section on quotations. 10.4 CREATING A QUOTATION To create a quotation, create a new session or backtrack to the top of R/3’s menu structure and use the following path: LogisticsSales and Distribution  SalesQuotationCreate (Transaction Code: VA21) Field Value Inquiry Type QT Sales Organization 3000 Distribution Channel 10 Division 00 32
  33. 33. Hit <Enter> to proceed to the quotation data entry screen and enter the following data: Field Value Customer # 8GG From Date today's date To Date end of the month Item 1 Material R-1150 Item 1 Quantity 2 In this transaction, the customer is requesting a quotation for a quantity of 2 of material R-1150 (a CDROM drive). • Examine the PRB field. What probability is assigned to the quotation? • Examine the Expected Order Amount field. How is this number calculated? {It is the probability multiplied by the quotation total $ amount.} • Click on the <Save> Button to save the quotation. Record the assigned quotation #. The probability of a quotation is generally assumed to be higher than that of a more casual inquiry i.e., 70% vs. 30%. In truth, they will differ from company to company and are arrived at by a study of historical data, such as how many inquiries and quotations were later referenced by orders. 10.5 CREATE AN ORDER REFERENCING THE QUOTATION Similar to an inquiry, the customer may call back to place an order referencing the quotation. Again, they may not remember their quotation number, but again, we assume that the customer remembers the quotation number. To create an order that references the quotation, use the following path: LogisticsSales and Distribution  SalesOrderCreate with Reference toQuotation (Transaction Code: VA01) 33
  34. 34. • When prompted, enter the quotation number. • Click on <Copy> to copy all the items and quantities into the order. • When the order form comes up, make sure the material R-1150 has been pulled up with a quantity of 2. • Enter the purchase order number, po-qt1-GG. • Click on the <Save> Button to save the quotation. Record the assigned quotation#. • Check the document flow for the order. What does it show? {It shows that the order was created from the Quotation.} 10.6 PARTIALLY REFERENCE A SECOND QUOTATION Return to the <Quotation> option in the Sales screen and create another quotation using the following data. Field Value Customer # 8GG From Date today's date To Date end of the month Item 1 Material R-1151 Item 1 Quantity 4 In this case, the customer is placing an quotation for 4 headlights. The object of this exercise is to determine the effect of partially referencing a quotation. Create an order that partially references the quotation using the following path: LogisticsSales and Distribution  SalesOrderCreate with Reference toQuotation (Transaction Code: VA01) • When prompted, enter the quotation number. • Click on <Copy> to copy all the items and quantities into the order. 34
  35. 35. • When the order form comes up, change the material quantity for material; R- 1151 from 4 to 2, as the customer indicates they now require only 2 headlights. • Enter the purchase order number, po-qt2-GG. • Click on the <Save> Button to save the quotation. Record the assigned quotation#. Performing these actions means that the material in the Quotation has been partially referenced. There should be a quantity of 2 remaining in that line item. To attempt to reference the quotation again, create another order that references the quotation using the path: LogisticsSales and Distribution  SalesOrderCreate with Reference toQuotation (Transaction Code: VA01) • When prompted, enter the quotation number. • Click on <Copy> to copy all the items and quantities into the order. • Did the first material come up? In what quantity? In R/3, partially referencing an quotation’s line item, does not completely reference that line item. This behavior is different from that of the inquiry transaction. Quotations can therefore be reused until the quantities are exhausted or the <Valid To> date is past. 35
  36. 36. 11 PACKING IN DELIVERIES Three of the major activities in deliveries are picking, packing, and post goods issue, as earlier discussed. Packing is optional within deliveries, but is often required for items that cannot be shipped as is. This section illustrates how packing is accomplished within R/3. In packing, a packing material is selected and then used to pack the ordered item. In the above example, the customer ordered a motorcycle that came with a free headlight. The objective of this exercise is to pack the headlight in a carton (material PK-100) for delivery. Create a delivery for the last order using the following path: • LogisticsSales and Distribution Shipping and Transportation  OutBound Delivery Create (Transaction Code: VL01N) • Enter the order number for the last order. • Push the date out by 7 days or more so the delivery can be created. • Press <Enter> to go to the Delivery – Overview:Quantities screen. • Click on the Item 20 checkbox and select the path: Edit  Pack • This takes you to the <Pack Items> screen, where we will select the MSI Carton (Material) as the packing material. • Enter the following data in the All Shipping Units groupbox: Field Value Shipping Material PK-100 • Hit <Enter> • Highlight the first rows of the Shipping Unit and Item group boxes. • Select menu option <Edit><Pack Item> to pack CDROM into the carton. • Save the delivery and examine the order or delivery document flow. • What is the Status assigned to Packing? 36
  37. 37. 12 DELIVERY DUE LISTS Up until this point, we have individually created deliveries for our entered orders, for illustration purposes. One of the advantages of R/3 however, is the ability to batch process creation of documents, which makes sense in an actual business environment. Deliveries are seldom created at the same time as their associated orders (an exception is cash orders). Instead, it is more efficient to create all deliveries from outstanding completed orders at predetermined times. The function is R/3 that is used to batch process delivery creation is the Delivery Due List. This function collates all outstanding completed orders and creates deliveries for them. To improve efficiency further, orders that have the same ship-to and delivery dates are put together in the same deliveries. To process the delivery due list, you need to have more than one completed order. Create two completed orders using the following data: Field Value Order Type OR Sales Organization 3000 Distribution Channel 10 Division 00 Order 1: Field Value Customer # 8GG Order Date today's date Customer PO# po-ex5-GG Item 1 Material R-1150 Item 1 Quantity 3 37
  38. 38. Order 2: Field Value Customer # 8GG Order Date Today's date Customer PO# po-ex6-GG Item 1 Material R-1151 Item 1 Quantity 2 After the two orders above have been successfully entered, proceed to the creation of the delivery due list using the following path: Logistics  Sales and Distribution  Shipping and Transportation  Outbound Delivery  Create  Collective Processing of Documents Due for Delivery  Sales Orders (Transaction Code: VL10A) At this point, the delivery due list data form comes up. Enter the following data in it: Field Value Shipping Point 30GG Delivery Creation Date (start) {Today's date} Delivery Creation Date (end) {10 days from today} Ship-To 8GG To ensure that the list is being prepared for the correct sales area, click on the <organizational data> button. When the popup window appears, enter the following data: Field Value Sales Organization 3000 Distribution Channel 10 Division 00 38
  39. 39. Select menu option <Program><Execute> to see the delivery due list. The two orders you created (along with other completed orders) is then displayed in a list. • The small boxes to the left of the screen shows all the orders highlighted, meaning that they will be processed. • If you want to process only selected orders, go to EditDeselect All, then select the orders you want delivered by clicking on the small box on the left of each order. • Click on the <Save> icon to run the delivery due list. • In the log for delivery run screen, how many deliveries were created? Why? (A single delivery was created, combining the two orders.} 39
  40. 40. 13 QUANTITY CONTRACTS AND SCHEDULING AGREEMENTS 13.1 WHAT ARE QUANTITY CONTRACTS Quantity contracts are agreements between the customer and your company to order specific quantities of a product within a set timeframe. The customer does not provide any information about delivery dates, only the start and end date of the contact. Quantity contracts are usually agreed to at discounts from totals if priced individually. A quantity contract is fulfilled when the customer places orders against it in the contract period. These orders are known as release orders or ‘call-offs’. However, they are standard orders that automatically reference the customer’s quantity contract and reduce the remaining amount of product to be ordered under the contract. If the customer supplies delivery dates for the product, then it is preferable to use a scheduling agreement, instead of a quantity contract. This is described in the following section. 13.2 CREATE A QUANTITY CONTRACT To create a quantity contract, use the following path: Logistics  Sales and Distribution  Sales  Contract  Create (Transaction Code: VA41) • Enter the following data and hit <return>. Field Value Contract Type NMS {quantity contract} Sales Organization 3000 Distribution Channel 10 Division 00 40
  41. 41. • In the screen <Create Contract: Overview – Single-Line Entry>, enter the following data: Field Value Customer # 8GG Order Date today's date Customer PO# po-ex7-GG Valid-from {today’s date} Valid-to {three weeks from today} Item 1 Material R-1151 Item 1 Quantity 10 • Save the quantity contract and record the contract number. Now that the quantity contract has been created, to view how it is affected by orders, it is necessary to create release orders against the quantity contracts. To create the first order, use the following path: LogisticsSales and Distribution  SalesOrderCreate (Transaction Code: VA01) Field Value Order Type OR Sales Organization 3000 Distribution Channel 10 Division 00 • Click on the <Ref. To Contract> button to create the order with reference to the quantity contract. • In the popup window, enter the quantity contract number in the <contract> field and click on <copy>. • In the <Create Standard Order> window, enter the following: 41
  42. 42. Field Value Customer # 8GG Order Date today’s date Customer PO# po-ex8-GG Item 1 Material R-1151 Item 1 Quantity 4 • Click on <save> to save the order. Record the order number. • Go back and create a second order with the following data: Field Value Customer # 8GG Order Date today’s date Customer PO# po-ex9-GG Item 1 Material R-1151 Item 1 Quantity 12 • Cllck on <save> to save the order. What message do you get? Why? The message says that the quantity contract has been fully exhausted. Adding 6 from the first order to 12 in the second order gives 18, which is 8 more than the quantity on the initial contract. However, the order is not refused. The quantity contract is exhausted, and another 8 of the items are added from inventory to the order. • Try to open a 3rd order, referencing the quantity contract. Does it work? {No, because the contract has been exhausted.} • Examine the document flow for the quantity contract or any of the orders that reference it. 42
  43. 43. 13.3 WHAT ARE SCHEDULING AGREEMENTS Scheduling agreements are similar to quantity contracts in that they are agreements between the customer and your company to order specific quantities of a product. However, while the quantity contracts do not contain the delivery dates for the materials, scheduling agreements do. A scheduling agreement is fulfilled when the customer places deliveries against it in the agreement period. Thus, scheduling agreements do not have orders placed against them. Instead, if the <delivery due list> function is run on the same day as one of the deliveries is due, then it is used to directly create a delivery. After the delivery is created, the quantity in the scheduling agreement is correspondingly reduced. If the customer cannot supply specific delivery dates for the product, then it is preferable to use quantity contract, and refer orders to this contract when they are created. 13.4 CREATE A SCHEDULING AGREEMENT To create a scheduling agreement, use the following path: Logistics  Sales and Distribution  Sales  Scheduling Agreement  Create (Transaction Code: VA31) • Enter the following data and hit <return>. Field Value Scheduling Agreement Type DS {scheduling agreement} Sales Organization 3000 Distribution Channel 10 Division 00 43
  44. 44. • In the screen <Create Scheduling Agreement: Overview>, enter the following data: Field Value Customer # 8GG Order Date today's date PO# po-ex10-GG Valid-from {today’s date} Valid-to {three weeks from today} Item 1 Material R-1151 Item 1 Quantity 12 This specifies that the material R-1151 is required for a target quantity of 12 I the scheduling agreement. The remaining task is to specify in the agreement the exact dates on which the material should be delivered and in what quantities. This is done by going to the schedule lines and entering the data there, as follows: • Click in the box to the left of the item number. • Use the menu: GoTo  Item  Schedule Lines • Enter the following data on line 1: Field Value Date Type D Delivery Date Four days from now Quantity 7 • Enter the following data on line 2: Field Value Date Type d Delivery Date Ten days from now Quantity 5 44
  45. 45. • Hit <Enter>. What happens? {Delivery is rescheduled for the first date to the earliest available delivery date}. • Click on <Save> to save the scheduling agreement. Record the agreement number. 45
  46. 46. 13.5 TESTING THE SCHEDULING AGREEMENT The next assignment is to exhaust the scheduling agreement quantities by creating deliveries. Create a delivery that references the scheduling agreement by using the following data: Field Value Shipping Point 30GG Selection Date Twelve days from now Order {scheduling agreement #} • Note that you are using a delivery date that encompasses both schedule lines in your scheduling agreement. How many deliveries were created and why?1 • Save the delivery and note the delivery number. • Create a second delivery with the same data as above; save that delivery and record the delivery number too. 1 Only one, because the delivery lines in the scheduling agreement have different dates. 46
  47. 47. 14 PRICING Pricing is a very important function in R/3. It can also be very difficult to grasp, but the underlying concepts are fairly straightforward. Prices for items are determined primarily by a process called the condition technique. The condition technique is so called because it works using a set of conditions or elements that work together to determine the overall price for an item. In R/3, the condition technique is used to organize and manipulate the main elements that determine a material’s pricing to result in an overall price that includes the basic price, discounts, surcharges, and taxes. The price of a line item (that is, a variable quantity of a material) is determined by a combination of 5 elements. These are: 1. The sold-to 2. The document type 3. The sales organization 4. The division, and 5. The distribution channel The combination of these elements with the material’s basic price determines the total price of the items as sold to the user. 14.1 PRICING PROCEDURE A price is determined for a material through the use of a pricing procedure, the highest level element of pricing. Each item uses a specific pricing procedure, determined by a unique combination of the five elements above. This selection is set up in the Implementation Guide (IMG). To see how the pricing procedure for transactions made in the sales area: 3000 (company code), 10 (distribution channel), and 00 (division) is determined, use the following path: 47
  48. 48. Tools AcceleratedSAP  Customizing  Project Management  SAP Reference IMG  Sales and Distribution Basic Functions  Pricing  Pricing Control  Define and Assign Pricing Procedures  Define Pricing Procedure Determination (Transaction Code: OVKK) • Click on <Position> • Enter the following data: Field Value Sales Organization 3000 Distribution Channel 10 Division 00 • Hit <Continue> or press <Enter> • What pricing procedure is shown?2 The pricing procedure is unique for the sales area, plus the document pricing procedure key A, and the customer pricing procedure key 1. The document pricing procedure key is in the header of the sales document, while the customer pricing procedure key is in the customer master record. This adds up to the five elements described previously. The field to the right of the pricing procedure is the condition type automatically proposed by the system. We will deal with the subject of condition types next. 14.2 CONDITION TYPES The condition type is at he heart of the condition technique in SAP R/3. Essentially, a condition represents a major aspect or representation in R/3 of pricing activity in your organization. For example, there may be a condition type for the basic price of a material, there may be another condition type to determine a material discount, a customer discount, or a sales promotion. A material’s price might then be determined by a combination of condition types used within a pricing procedure. 2 The pricing procedure, YVA2US is shown. 48
  49. 49. To examine existing condition types, as used in an order, do the following: • Pull up a previously created order, one with the purchase order #po-10-2-GG. • Click in the box to the left of the item R-1151. • Select ItemPricing F7 from the menu. • Click on the <Analysis> button and examine the header of the next screen. Which pricing procedure is being used?3 This selection illustrates the pricing for item # R-1151. In particular, the leftmost column lists the different condition types used to price the material. Some of the condition types shown are: • ZR00, a condition type that provides a basic or core price for the material. • K004, another condition type that provides a material discount. • Others that may be present include VPRS, SKTO, K005, K007. Each of these speaks to a specific type of pricing discount. We will examine a more comprehensive list of these condition types later. 14.3 CONDITION TYPES AS DEFINED IN THE IMG Each of the condition types that may be used in sales documents is defined in the IMG. For example, we may examine the PR00 condition type using the following path: Tools AcceleratedSAP  Customizing  Project Management  SAP Reference IMG  Sales and Distribution Basic Functions  Pricing  Pricing Control  Define Condition Types  Maintain Condition Types Click on <position>, type PR00 in the search field, and then press Return. This takes you to the PR00 condition type. Highlight the entire line by clicking in the <condition type> field, namely ‘Price’. Click on the <details> icon—the icon with 3 The RVAJUS pricing procedure. 49
  50. 50. the magnifying glass. This takes you to directly into the structure of the condition type. The following elements can be seen: • The condition type: PR00 • The access sequence associated with the condition type, also PR00. Each condition has one associated access sequence. Unfortunately, R/3’s naming conventions frequently give both elements similar names, as in this case. • The condition class, which denotes the nature of the condition type for pricing, such as (core) price, surcharge or discount, tax etc. In this case, the type is B, or price. • The calculation type describes how the value is measured e.g., by quantity, by weight, or volume. The default for PR00 is C, signifying that the value is quantity-dependent, not measured by volume or weight. Based on the condition technique, a pricing procedure determines the price of a material. Subsequently, the pricing procedure calls upon one or more condition types in order to retrieve the material’s basic price, any discounts, surcharges, and other important pricing factors. However, it does not end here. Several other pricing elements in R/3 are used to enable the condition types to perform their task. They are: 1. Access Sequences 2. Condition Tables, and 3. Condition Records. We continue by examining Condition Tables. 14.4 ACCESS SEQUENCES AND CONDITION TABLES To recap, a pricing procedure is the overall method that determines a price for a material. Each pricing procedure has one or more condition types, which individually determine an aspect of pricing e.g., core price, discounts and surcharges. If we focus our attentions on the core price condition type, PR00, for example, we already know that it has the associated access sequence, PR00. This access sequence is simply the order which R/3 searches for a stored record to fulfil a 50
  51. 51. condition type. So, for example, we may determine the core price of a product in various ways, such as; cost plus a percentage, competitor’s price, and activity- based costing. However, these would all be different prices, if stored within R/3. An access sequence would specify how we searched for a core price throught these three options. It might be (1) cost plus (2) ABC, and (c) competitor’s price. If no data record was found for “cost plus”, then we would look for an ABC ‘core price’. If no ABC price existed, then the competitor’s price might be sought out. The sequence (1), (2), (3) represents the PR00 Access Sequence. To examine the PR00 access sequence and the records searched by R/3, use the following path: Tools AcceleratedSAP  Customizing  Project Management  SAP Reference IMG  Sales and Distribution Basic Functions  Pricing  Pricing Control  Define Access Sequences  Maintain Access Sequences (Transaction Code: V/07) • Click on <Position> and and enter <PR00> in the popup field. • Click to the left of <PR00> to highlight the entire line. • Click on the <Accesses> button in the <Navigation> group box. Four accesses are shown in the list of accesses. They are accesses 10, 20, 30, and 40. This implies that there are 4 possible records of ‘core prices’ in the R/3 system, determined in different ways. Each of these records is called a condition record. Note that the actual record is not stored in the IMG, only the structure is. The fields that comprise this record, i.e., the structure, are collectively referred to as the condition table. To view the fields of the first condition table, perform the following: • Click to the left of access number 10 to highlight the entire line. • Click on the <Fields> button in the <Navigation> group box. • Scroll to the left to view field descriptions. 51
  52. 52. For access 10, the customer/material access sequence, there are four fields that comprise the structure of the condition table and will hold data values in the actual condition record. These fields are: 1. Sales organization 2. Sold-to 3. Distribution channel, and 4. Pricing Reference Material (or material number) If an actual condition record exists with an attached price, then this price will be used first. However, if no record has been stored, then R/3 will check the record represented by access #20. • { What fields exist in the condition table for access #20?} • Answer: Sales organization, Sold-to, Price List Types, Document Currency, and Pricing Reference Material (or material number} 14.5 HOW PRICING PROCEDURES ARE USED IN ORDERS Pricing procedures determine the price for a material. In 14.1, we saw in our pricing analysis that procedure RVAJUS was used to determine the price for the order. This procedure had several attached condition types, each of which had a single access sequence. The access sequences simply specified the order in which the search was made for condition records. In the next set of exercises, we make use of the condition types, PR00, K005 and K007 to illustrate how R/3 pricing works in practice. The first task is to compare the definition of the RVAJUS pricing procedure in the order with the one in the IMG. In one session, use the following path: 52
  53. 53. Tools AcceleratedSAP  Customizing  Project Management  SAP Reference IMG  Sales and Distribution Basic Functions  Pricing  Pricing Control  Define and Assign Pricing Procedures  Maintain Pricing Procedure (Transaction Code: V/08) Click on <Position>, enter RVAJUS in the presented field Press <Enter> Click to the left of RVAJUS Click on the <Control> button This takes you to the layout of the RVAJUS pricing procedure. 53
  54. 54. 15 CUSTOMER COMPLAINTS: RETURNS AND CREDIT MEMOS Customer dissatisfaction with some percentage of provided products and services is an unhappy fact of life in organizations. When this happens, the selling organization is required to provide remedies to the customer in a variety of ways. In some instances, the customer may simply seek to return the product for credit. In other cases, the product may have been damaged in transit and it is not worth returning to the company. In this case, the customer may simply request credit for the damaged material. Both scenarios are the subjects of the two following exercises. 15.1 RETURNS When a customer requests for a return, it is treated as a type of order and handled in R/3’s sales function. While products may be returned in R/3 without a corresponding past order, in our example, we will assume that a previous order has been placed and is being returned. We will return the order created in Chapter 7, with the purchase # po-71-GG. To begin the Returns process, use the following path: LogisticsSales and Distribution  SalesOrderCreate (Transaction Code: VA01) Field Value Order Type RE Sales Organization 3000 Distribution Channel 10 Division 00 Note that the order type is RE, not OR. Next, we connect the return to the originating order, using the following path: Sales Document  Create With Reference  To Order 54
  55. 55. Using the Matchcode and search help ‘A’, enter the purchase order number in the appropriate field. Select the order number when it comes up. Press <Copy All> and proceed to the Returns screen. In creating a return, the customer may seek to return some or all the line items in the original order. Of each line item, the customer may seek to return some or all of the quantity ordered. In this particular case, the customer seeks to return one of the two ordered items, but will keep the free item, which is acceptable to our company. Change the quantity of the line item 10 from 2 to 1. Go to Order Reason and enter Reason 101 (Poor Quality). Before saving the return, notice the No. “08” in the Billing Block field. Examine the matchcode for this field to see what “08” means. It signifies “check credit memo’ and is an added level of verification to ensure that returns are valid and must be explicitly approved by an organizational representative. This representative will typically check to ensure the return was based on an order and that it was approved, maybe with an RMA# (Return Merchandise Authorization number). Save the Return. 15.2 RETURN DELIVERY After a Return is created, a returns delivery transaction follows. We can go directly to this using the path: Sales Document  Subsequent Functions  Create Delivery This saves the Return and creates a Returns Delivery document. Attempt to pick using Subsequent Functions  Transfer Order. What Happens? We are not allowed to pick in a Returns Delivery, as the materials are being received by us, not being sent out to the customer. The necessary step is simply 55
  56. 56. to Post Goods Issue, by clicking on the <Post Goods Issue> button or by selecting: Edit  Post Goods Issue, or by hitting F8. This completes the Returns Delivery and denotes the material being received back into the company’s plant. Write down the Returns Delivery number. Next, we must go to Billing and create a credit memo, in order to give the customer credit for the material return. From the topmost menu level in R/3, use the following path: Logistics  Sales and Distribution  Billing  Billing Document  Create. (Transaction Code: VF01) If the Returns document number is not automatically selected, type it in (not the Returns Delivery number). Execute the credit memo generation. An error results. Examine the log to find out why a credit memo could not be generated. {The reason is that is was blocked for billing in the Return document.} In another session, go back to the Return document and remove the “08” in the Billing Block field. Execute the credit memo generation again and save. Finally, the customer must be given the credit in Financial Accounting. In R/3, note that customer credits as well as payments are handled in Accounts Receivable. All supplier credits and payments, conversely, are handled in Accounts Payable. Go to the appropriate location in FI from the top level of R/3 using: Accounting  Financial Accounting Accounts Receivable  Document Entry Incoming Payment. (Transaction Code: F-28) 56
  57. 57. This takes you to the <Post Incoming Payments: Header Data> screen and form. Enter the following data: Field Value Document Date {Today’s date} Document Type DZ (customer payment) Company Code 3000 Posting Date {Today’s date} Currency/Rate USD Bank Data: Account 113100 (dummy Checking Account) Value Date {Today’s date} Open Item Selection: Account 8GG This takes you to the <Post Incoming Payments: Process Open Items> screen. In the list of open items, there should be one invoice requiring a credit in the Open Items list. If there is more than one invoice listed, make all the other invoices inactive in order to pay on the relevant credit memo. Thereafter, enter the amount required to clear the credit memo. Note that it will have a –ve sign as it is a credit to the customer. 15.3 CREDIT MEMOS A credit memo is also treated as a type of order and handled in R/3’s sales function. In this instance, the customer may have received a product that was damaged or ruined on delivery. Hence, it makes little sense to return the actual product or material, given that the customer’s version of events is accepted. We likewise assume that a previous order has been placed and credit is being sought. 57
  58. 58. We will return the order created in Chapter 8, with the purchase # po-81-GG. Notice that the transaction needed is the Credit Memo Request transaction, or CR. To begin the Credit Memo Request process, use the following path: LogisticsSales and Distribution  SalesOrderCreate (Transaction Code: VA01) Field Value Order Type CR Sales Organization 3000 Distribution Channel 10 Division 00 Note that the order type is CR, not RE. Next, we connect the credit memo request to the originating order, using the following path: Sales Document  Create With Reference  To Order Using the Matchcode and search help ‘A’, enter the purchase order number in the appropriate field. Select the order number when it comes up. Press <Copy All> and proceed to the Credit Memo Request screen. In creating a credit memo request, the customer may seek credit for some or all the line items in the original order. Similar to a return, the customer may also seek credit for some or all of the quantity ordered for each line item. In this particular case, the customer seeks credit for all the ordered items, which is acceptable to our company. Go to Order Reason and enter Reason 104 (“Material Ruined”). The Billing Block field. Is again filled in with a “08”, signifying “check credit memo’. This forces explicit credit verification by an organizational representative. Save the Credit Memo Request. 58
  59. 59. 15.4 BILLING Since no goods are being returned, we go directly to Billing and create a the actual credit memo, in order to give the customer credit for the material return. From the topmost menu level in R/3, use the following path: Logistics  Sales and Distribution  Billing  Billing Document  Create. (Transaction Code: VF01) If the Credit Memo Request document number is not automatically selected, type it in and execute the credit memo generation. An error results from the billing block. In another session, go back to the Credit Memo Request and remove the “08” in the Billing Block field. Execute the credit memo generation again and save. Finally, the customer must be given the credit in Financial Accounting. In R/3, note that customer credits as well as payments are handled in Accounts Receivable. All supplier credits and payments, conversely, are handled in Accounts Payable. Go to the appropriate location in FI from the top level of R/3 using: Accounting  Financial Accounting Accounts Receivable  Document Entry Incoming Payment. (Transaction Code: F-28) This takes you to the <Post Incoming Payments: Header Data> screen and form. 59
  60. 60. Enter the following data: Field Value Document Date {Today’s date} Document Type DZ (customer payment) Company Code 3000 Posting Date {Today’s date} Currency/Rate USD Bank Data: Account 100000 (dummy Checking Account) Value Date {Today’s date} Open Item Selection: Account 8GG This takes you to the <Post Incoming Payments: Process Open Items> screen. In the list of open items, there should be one invoice requiring a credit in the Open Items list. If there is more than one invoice listed, make all the other invoices inactive in order to pay on the relevant credit memo. Thereafter, enter the amount required to clear the credit memo. Note that it will have a -ve sign as it is a credit to the customer. 60

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