1. Pricing procedures in sales documents are determined by a combination of sales area, document pricing procedure, and customer pricing procedure. 2. Item categories provide additional control over pricing, billing, delivery, and other factors in sales documents based on customizing settings for the sales document type, item category group, and item usage. 3. The movement type in delivery documents comes from the schedule line category assigned in the sales order.

1. Q&A - Sales and Distribution
1. How Pricing Procedure Determination takes place
Pricing procedure determination happens in the sales document. It is based
on a combination of SALES AREA , Document Pricing procedure
(maintained in customizing ), Customer pricing procedure (maintained in
sales area data in customer master)
2. What is Item Category
Item category is used to provide additional control functions in sales
documents in order to treat different kind of items separately, also
different processing of same material in different sales orders.
It controls various factors like pricing relevance, billing relevance,
delivery relevance, whether schedule lines are allowed or not, whether the
item is a text item, incompletion log etc.
It is determined on the basis of setting made in customizing , depending
upon Sales Doc type, Item Category group and is also influenced by item
usage and higher level item category of a item in the sales order.
3. How Movement type is determined in delivery document
The movement determined in the delivery document comes from the
schedule line category.
4. How routine can be assigned in Pricing procedure
Routines can be assigned to pricing procedure in requirement , alt cal key
in pricing procedure at the line item level.
5. How account determination takes place in billing
Account determination in billing depends on the Chart of accounts, Sales
Organisation , Account assignment Group of the Customer (payer) ,
Account assignment group of the material and the account key
6. How tax determination takes place
The tax determination is influenced by the type of transaction whether it is
domestic or export, tax classification of the customer and tax
classification of the material.
7. How CCA gets determined
The credit control area is determined from following –sales area ,
company code & user exit ( if required ) ,
It should be assigned to the respective company code in customizing
8. What is Availability check control

2. The availability check is controlled by the following factors – Checking
group must be maintained in the material master in availability check
field, checking rule should be maintained in order to specify the scope of
availability check like which inward / outward stock movements must be
considered , the schedule line category also controls the availability check
in the sales documents and the delivery item category controls whether the
check should take place in delivery.
Also the relevant settings should be made in the customizing and a plant
should be defined in the sales document for the availability check to take
place.
9. What is a copy control
Copy control is used to manage the data flow in the documents linked in
process chain e.g. from the inquiry to quotation, sales order to delivery
doc, quotation to sales order, sales order to billing doc, billing doc to sale
order and billing doc to billing doc.
This is in order to save time in data entering at the various stages and also
to maintain the consistency of data across the whole process and to avoid
human error. Also to check the completeness of the documents before data
is transferred.
It has various controls like copy requirements , data transfer routines
,specifying the source doc and target doc , whether complete reference has
to take place etc.
10. What is inter company billing
Inter company billing takes place when a sales organization belonging to a
different company code creates a sales order from a plant belonging to a
different company code (both company codes belong to one organization).
The plant then delivers the goods to the customer for which the order was
entered directly and after that bills the sales organization of the ordering
company code.
11. What is incompletion rule
An incompletion rule is used to check that important sales relevant data is
not missing so that the subsequent functions like delivery and billing can
be completed.
Depending on the setting in customizing of sales document the incomplete
document can be saved or cannot be saved at all.
If it is allowed then the further processing depends upon the status groups
mentioned in the incompletion log.
12. Can picking location be defaulted in delivery
Yes the picking location can be defaulted in the delivery . normally the
picking location comes from the sales order , incase it does not then the
picking location determination rule specified for the resp delivery type.

3. Following rules are present – MALA , RETA, MARE.
13. Movement types in SD transaction
There are various movement types which are used in SD transactions. 601,
641 , 621 are some of them.
14. What is Condition techniques
Condition technique refers to the procedure through which various pricing
elements like gross price, discounts, surcharges and taxes are
automatically determined in the sales order.
It is also used in material determination, free goods , output determination
and text determination procedure.
In the pricing in sales orders first the respective pricing procedure is
determined from the setting made in customizing , the pricing procedure
contains the sequence in which the various conditions are to be executed ,
then each condition type gets executed one by one .
Every condition type has an access sequence attached to it, which forms
the search strategy. Every access sequence has condition tables which
contains the key for the condition records.
the system checks the various condition records and returns the value
when it is successful in finding a record.
15. How number range is determined in Customer Master
Number range in customer master comes from the setting made in the
account group for which we are creating the customer master record.
16. Stock Transfer scenario
To address to stock transfer scenario, as a process , PO is created by plant
on the delivering plant. Delivering plant then created delivery document
wrt purchase order and quantities gets updated. Billing document wrt
delivery document is created by delivery plant. Receiving plants then
received the material by doing GR against delivery document. The
customer and vendor mapping for plant is done and customization is done
in transaction OMGN.
17. Org structure
Organization structure used by SD are : Sales organization , Distribution
Channel and Division .the combination of Sales org , dist channel and
division makes a Sales area. All sales documents exist within a sales area.
For internal org purposes Sales Office , sales group and sales person.
Shipping point – is used for processing deliveries.
For accounting the client is used to represent a business group and various
subsidiaries as Company codes.

4. Plant is the highest org structure in MM and is used to manage the stock ,
the material is distributed from the plant. The stock is managed at the
storage location level under the plant.
18. Output controls
Output is the information we exchange with the customers. The output
control also happens with the help of condition technique and we have to
assign the output type to the objects for which we want to take out the
output e.g. order confirmation for sales order, invoice from cash sales
order , freight list from delivery and shipping label from items.
Then we create condition record for the respective output type.
In the record we specify the transmission medium , partner , time of output
,language.
19. Condition Exclusion
Condition exclusion can be done when we want that some conditions are
not executed during pricing. This can be done by putting a condition
exclusion indicator either in the customizing for the condition type or
while maintaining a condition record . Also a requirement 2 should be set
in the pricing procedure for the particular condition which are not to be
executed.
Condition exclusion can also be done by using exclusion groups in order
to find the best price and highest discount ,when there are more than one
condition record for a particular item.
20. Returns Cycle
When a customer returns the goods he sends them back for this first a
return credit memo request is created.
Then the return credit memo request is approved and the billing block is
removed.
After this the credit memo is created with ref to the credit memo request.
Then goods receipt is done by creating a returns delivery.
21. Excise Cycle , Excise Document, Depot Sales
In case the excise group attached to plant is defined as warehouse , excise
document needs to be created at the time of billing. Number range needs
to be maintained for it and auto series group determination needs to be
configured. For the depot scenario , during the goods receipt the stock
needs to be taken in (RG23D ) using J1IG & the stock is utilized with
transaction J1IJ which is in ref to delivery document
22. Config for auto posting of excise doc
The configuration for auto exise document posting can be configured in
transaction J1IT under the heading Auto determination of series group.

5. Required series group can be assigned for sales area and excise group
combination. Auto posting also needs to be initiated
23. Sales view in Material Master
Sales view in material master are sales org 1 & 2 , sales text. Also sales –
general/plant is also relevant for sales.
24. Name few Important tables in SD
VBAK, VBAP, LIKP , LIPS , VBRK , VBRP , VBFA
25. Cash sales order
In cash sales the customer pays for the goods upfront and wants the
delivery immediately. In cash sales the delivery gets created automatically
as soon as we save the order. A cash sale invoice also gets generated
automatically .
The billing does not have a output type and billing is done with reference
to the order. The receivables are not debited to the customer ar account but
directly to the cash account.
26. Third party orders
In third party orders the company does not deliver the order ,but it is
delivered by the vendor directly to the customer and then the vendor bills
the company. The company then bills the customer based on the vendor
invoice.
For the items which require third party processing a direct purchase
requisition gets created when a sales order is created for them. From that
purchase requisition the purchase order is created and send to the vendor.
This controlled by the material type ,which determines whether a material
is procured externally or is manufactured .
The item category for third party items is TAS and is influenced by the
item category group BANS.
27. Schedule line category
schedule line category is an additional control function in sales
documents. It controls various functions like relevance for delivery ,
availability check / transfer of requirements has to be carried out or not.
Movement type for the item.
It is determined on the basis of item category of the item and the MRP
type of the material .
28. Shipping point determination
shipping point is determined for each order item based on the :
Delivery plant , shipping condition in sold to party master record, loading
group in material master.