Sap sd-sun-surya-material

SAP-SD

SAP
SALES & DISTRIBUTION

By

The One & Only One
Mr. Srinivas Naidu
SD Guru
SD Certified Consultant

SUN SURYA
Technologies

SUN SURYA TECHNOLOGIES

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SAP-SD


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SAP-SD

Index
SL.NO TOPIC
1
2

3

4

5

6
7
8
9

10

11
12
13
14
15

16

PAGE NO

INTRODUCTION
SALES & DISTRIBUTION
MODEL OF ENTERPRISE STRUCTURE
BUSINESS PROCESS
DEFINITIONS
ASSIGNMENTS
MASTER DATA
CUSTOMER MASTER
MATERIAL MASTER
DOCUMENTS
SALES DOCUMENT HEADER
ITEM CATEGORY
ASSIGN ITEM CATEGORIES
DEFINE SCHEDULE LINE CATEGORIES
PRICING
DEFINE PRICING PROCEDURE (OVKK)
SYSTEM MODIFICATIONS
PRICING EXERCIES
FREE GOODS
SD CONFIGURATION SETTINGS
ROUTE DETERMINATION
OUTPUT DETERMINATION PROCEDURE
ASSIGN OUTPUT DETERMINATION PROCEDURE
TEXT DETERMINATION PROCEDURE
TEXT DETERMINATION PROCEDURE FOR SALES DOCUMENT
HEADER
PARTNER DETERMINATION PROCEDURE
ASSIGN RELEVANT PARTNER FUNCTIONS FOR PARTNER
DETERMINATION PROCEDURE
DEFINE PARTNER DETERMINATION PROCEDURE FOR SALES
DOCUMENT HEADER
INCOMPLETNESS PROCEDURE
MATERIAL DETERMINATION
CROSS SELLING
ITEM PROPOSAL AND PRODUCT PROPOSAL
CREDIT MANAGEMENT / RISK MANAGEMENT
SIMPLE CREDIT CHECK
AUTOMATIC CREDIT CHECK
TRANSFER OF REQUIREMENT AND AVAILABILITY CHECK


1
4
4
5
6
11
14
28
32
36
49
53
53
60
72
74
84
94
96
99
102
103
104
106
108
109
110
112
114
117
119
126
128
132

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SL.NO TOPIC

PAGE NO

17
18

COPY CONTROL
CONTRACTS
A) VALUE CONTRACT (WK1)
B) SERVICE CONTRACT (WV)
C) MASTER CONTRACT

137
141
143
145
148

19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

CUSTOMER COMPLAINTS
CONSIGNMENT
INTER COMPANY / CROSS COMPANY SALES
THIRD PARTY SALES ORDER
INDIVIDUAL PURCHASE ORDER
DEFINE DELIVERY DOCUMENT
PACKING
RETURNABLE PACKAGING
BILLING DOCUMENT TYPE
MAKE – TO - ORDER
VARIANT CONFIGURATION
REBATES
LOGISTICS INFORMATION SYSTEM (L I S)
STOCK TRANSFER ORDER (STO)
BATCH MANAGEMENT
BILL OF MATERIAL (BOM)
FAQ

150
154
156
157
159
160
165
167
169
173
174
185
189
193
200
203
204


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SAP-SD

1

SAP
SAP
SAP : SAP is SYSTEMS APPLICATIONS AND PRODUCTS in Data Process
Different Modules in SAP are
1.
2.
3.
4.
5.
6.

FI & CO (Finance and Control)
S D (Sales and Distribution)
M M (Material Management)
Q M (Quality Management)
P M (Production Management)
H R (Human Resources)

PROGRAMME: It’s collection of Executable Statements / Instructions to the
System.
PACKAGE: It’s collection of Programmes & Functions.
• MS Office
• ATM Applications
• Railway Reservation System
The above packages can use end users / compute illiterates.
ERP : Expansion of ERP is ENTERPRISE RESOURCE PLANNING.
Enterprise : Well Established Organization.
Resource : Man
Material
Money
Machines
Methods

----------------

HR
Stores / Purchases
Finance
Mechanism
Planning

Goals and Objectives: Productivity
Cost of Production
Increasing Performance
Customer Satisfaction
The major ERP vendors are:
SAP R/3
ORACLE
PEOPLESOFT
JDEDWARDS
BAAN


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2

ERP Package

Finance

ORD MGMT

ORACLE
PEOPLESOFT
JDEDWARDS
BaaN
SAP R/3

U
X
X
X
U

INV

X
X
U
X
U

X
X
X
X
U

MFG

HR

X
X
X
U
U

X
U
X
X
U

ROOTS OF SAP
4 IBM people developed the SAP in 1972.
SAP R/3 : It’s a German based product.
SAP AG : AG stands for Incorporation in USA
AG stands for Company in INDIA
IDES: Internet Demonstration and Evaluation System.
R/3 stands for Real time 3 tier architecture. Tier is nothing but a scope of
computer.
Single Tier: Single Tier means Standalone System. Ex: PC
Database Layer
Application Layer
Presentation Layer
Database Layer is Back end
Presentation Layer is Front end.
Two Tier Architecture:
Database Layer
Application Layer
|
|
|
|
CL1 CL2 CL3 CL4

|
CL5

(CL – client)

Three Tier Architecture:
Database Layer
WP

WP

WP

WP

Despatcher
CL1

CL2


CL3

CL4

CL5
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3

SAP 2 Tier is IBM Mainframes.
SAP has own database is called SAPDB. It’s having 28,173 default tables.
ABAP – Advanced Business Application Programming
______________________________________
|
|
|
|
|
FICO
S&D
MM
PP
HR
Functional Module
|
Basis
Admin
ROLES OF AN ABAPer:
Every ABAPer has 3 roles.
1. Uploading the Data from LExacy system to R/3
BDC ---- LSMW
2. System Modifications
User Exit -- Screen Exit, Field Exit, Menu Exit and Customer Exit.
3. Generating Reports.

Implementation Partner
|
SAP Team
(Steering Committee)
Technical Consultants
Functional Consultants
Basis

Client
|
Ex: Dr Reddy Labs
(Core Team)
CEO
GM
HODS
End users
Feasibility study between Steering committee and Core Team.
BBP

Business Blue Print.

Core Team gives their requirements to Steering Team,
Steering Committee prepares the Business Blue Print i.e called BBP.
Dev. Server

QIA

PROD
----> Issues

Config
+
Customize
BBP

Unit Testing
Product Support
Functional
Tools
Smoke Volume PerExrine
Lotus Notes
Remedy


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4

S D (Sales & Distribution)
ENTERPRISE STRUCTURE
COMPANY (Corporate Office)
-------------------------------------------------------------------------|
|
|
|
|
|
------------------- Company Code 1
Company Code 2
Company
Code 3
|
|
|
------------------------|
|
|
|
|-----Sales Organization
|
Sales Sales
Sales
|-----Distribution Channel
|
Area 1 Area 2 Area 3
|-----Division
|
|
|
-----------------------------|
|
|
|
|
Sales
Sales
Sales
|
Office 1 Office 2 Office 3
|
|
|
--------------------------|
|
|
|
|
Sales
Sales
Sales
|
Group 1 Group 2 Group 3
|
|
| |----------------------------|
|
-------------------------------|
|
|
---------- Plant 1
Plant 2
Plant 3
|
|
|
--------------------------|
|
|
|
| Storage Storage Storage
| Loc 1
Loc 2 Loc 3
|
|
|--------------------|
|
-------------------------------|
|
|
Shipping Shipping Shipping
Point 1
Point 2
Point 3


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5

BUSINESS PROCESS
Inquiry
|
Quotation
|
Purchase
Order
|
Sales
Order
|
Outbound
Delivery
|
Sales
Invoice

I.

Define Enterprise Structure

II.

Master Data
(a) Customer Master
(b) Material Master
(c) Customer Material Info – Records
(d) Pricing Condition Records

III

Configure Documents
(a) Sales Documents
(b) Deliver Documents
(c) Billing Documents

To Configure and Customize SAP : SAP design certain tools. That are
(a) ABAP (Work bench) - for Technical Consultants
(b) I M G (Implementation Guide) – for Functional Consultants
(c) Administration (BASIS)
To navigate from screen to screen or transaction to transaction we use transaction
code or specified Path.
SPRO is a Transaction Code to go to IMG Tool.
PATH:
Logistics
Tools
Customizing IMG
SPRO Edit Project
SAP reference IMG

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6

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DEFINITION
1.DEFINE COMPANY (RCOMP) : Company is an highest Organizational Unit in the
enterprise structure. It represents Corporate Group.
PATH:
IMG
Enterprise Structure
Definition
Financial Accounting
Define Company
Select standard company (1000) click on copy as icon and define company by
changing data.
2.DEFINE COMPANY CODE (BUKRS):
Company code is an independent
Organizational Unit. Which is responsible look after Business Transaction in specified
geographical Area.
Which represents subsidiary of company which is having its own set of Database tables
from where we can generate reports like Balance Sheets and Profit & Loss A/cs and we
can consolidate those reports at this level.
Company can have no of company codes. That means company
codes should be assign to company. Company and Company codes define and
maintain by FICO.
PATH:
IMG
Definition
Edit, Copy, Delete, Check Company Code
Edit Company Code Data.
Choose existing company code ex:1000 click on Copy as icon and define company
code by changing data.
3.DEFINE SALES AREA (TVTA) : TVTA is the Table for sales area. Sales Area is a
Logical Collection of 3 physical organizational units. That are :
(a) Sales Organization
(b) Distribution Channel
(c) Division.
We use Sales Area to maintain Master Data,to configure documents to process
documents (by Customer) and to generate reports. Sales Area defines which division
(Material) passes through which distribution channel under which sales organization to
the customer.
(A).DEFINE SALES ORGANISATION (VKORG): Sales Organization is the
independent Organizational Unit in SD module. Which is responsible to process
business transactions with in specified geographical area and also it is responsible to
look after lExal obligations with in the specified area.


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Sales Organization can have no of distribution channels and divisions.
Company code can have no of sales organizations. Sales OrganizationsShould
assign to company code.
PATH:
IMG
Definition
Sales & Distribution
Define, Copy, delete, check sales organization.
Define Sales Organization
Choose existing sales organization ex:1000 click on copy as icon and define sales
organization by changing data.
STATISTICS CURRENCY (INR): Assign statistics currency the particular Sales
Organization follows.
CUSTOMER INTER COMPANY BILLING:
COMPANY
|
-----------------------------------------|
|
Company Code 1
Company Code 2
(IND)
(USA)
|
|
Sales Area 1
Sales Area 2
|
|
Plant 1
Plant 2
CROSS COMPANY / INTER COMPANY BILLING:
Step 1 : End Customer of Sales Area 1 under company code 1 raise the Purchase
Order
to purchase the material.
Step 2 : Sales Area 1 raised the Sales Order to sell the material with reference to
Purchase Order.
Step 3 : When there is no stock in Plant 1, then Sales Area 1 has to raise the
Purchase
Order to purchase the material from Sales Area 2 under Company Code 2.
Step 4 : Sales Area 2 raised Sales Order and directly delivered the goods to the end
Customer of Sales Area 1.
Step 5 : Sales Area 2 raised Inter Company Invoice in favor of Sales Area 1. Sales
Area 1 raised the standard Invoice in favour of end customer and settles
Inter Company Invoice.
To map Inter Company Transactions one customer should be created in SAP and he
should be assign to Sales Organization in IMG.


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PATH:
o
o
o
o

IMG
Billing
Inter Company Billing
Define internal customer no by Sales Organization.

Sales Organization Calendar ex:01 Factory calendar of German Standard:
Assign Factory calendar that usually Sales Organization follows. There we can
define Public holidays, holiday calendar and working days.
Check Rebate Processing Active:
RABATE: Rebate is a special kind of discount which is going to paid to the customer
/ payer based on certain period respectively.
FAQ: What are the pre-requests to configure rebates in SAP System?
Ans: There are 3 controls should be activated to configure rebates. I.e
(a) Check rebate processing active should be activated at definition of Sales
Organization.
(b) Check rebates should be activated at customer master/payer.
(c) Check relevant for rebates at definition of billing document type ex: F2
Note: Due to performance reasons these 3 controls should be re-activate if client
doesn’t process rebated in his business.
(B).DEFINE DISTRIBUTION CHANNEL (VTWEX): Distribution Channel is the
channel which business sends goods and services to the customer. Ex: Plant Sales,
Depot Sales and Showroom Sales.
Sales Organization can have no of distribution channels. That
means distribution channel assign to sales organization.
PATH:
IMG
Definition
Define, Copy, delete, check distribution channel
Go to new entries and define distribution channel e.g.PS : Plant Sales SS : Show
Room Sales Save it and go back.
(C).DEFINE DIVISION(SPART): Division is nothing but a range of product.Material
Masters are going to be maintain with specific to division. Sales Organization can
have no of divisions. That means division should be assign to Sales Organization.
PATH:
IMG
Definition
Logistics – General
Define, Copy, delete, check division.
Define division.


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Go to new entries and define divisions.e.g FW :Four WheelerTW : Two Wheeler
Save it and go back.
4.DEFINE SALES OFFICE (VKBUR): Sales Office nothing but geographical aspect
of Sales Area. Sales Area can have no of Sales Offices, that means Sales Office
should be assign to Sales Area.
PATH:
IMG
Definition
Maintain Sales Office.
Choose existing Sales Office Ex: 1000,Click on copy as icon and define Sales Office
(Ex:MSO) Save it and go back.
5.MAINTAIN SALES GROUP (VKGRP): Group of Sales Employees or an Physical
Organizational Unit (Branch Office) can be define as a Sales Group. Sales Office
can have no of Sales Groups. That means Sales Group should be assign to Sales
Office.
PATH:
IMG
Definition
Maintain Sales Group.
Go to new entries and define Sales Group (SD1). Save it and go back.
Note: Sales Area, Sales Office, Sales Group and Shipping Point define and maintain
by
SD Consultants.
6.DEFINE PLANT (WERKS): Plant is an highest organizational unit in MM Module.
Which is responsible to make a plan and to manufacture materials. One Sales
Organization can sell materials from no of plants, that are define under different
company codes.Company code can have no of plants, that means Plant can be
assign to company code.
FAQ: Can we sub-divide Plant?
Ans: Yes, it can divide into different no of storage locations.
PATH:
IMG
Definition
Define, Copy, Delete, Check Plant
Define Plant


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Choose existing Plant ex:1000,Click on copy as icon, define our plant by changing
data.
7.MAINTAIN STORAGE LOCATION (LGORT):
Storage location nothing but a sub-division of plant. Where we can
maintain Raw-Material, Finished Products and Scrap. Plant can have no of storage
locations that means Sales Location should be assign to Plant.Plant/Storage
Location combination assign to Warehouse Complex.
FAQ: Can we assign 1 storage location that has been define under 1 plant to another
plant?
ANS: No.
PATH:
IMG
Definition
Materials Management.
Maintain Storage Location.
Specify the Plant under which the storage location is going to be defined in work area
go to new entries and define storage location (SL1) save it and go back.
Note: Plant and Storage Location defined and maintained by MM Consultants.
8.DEFINE SHIPPING POINT (VSTEL):
Shipping Point is an independent organizational unit in SD module. Which is
responsible to process inbound and outbound deliveries.
A delivery can/should take place from one shipping point. Every shipping point has
its own organizational data. Ex: Factory calendar, ship timings, picking, packing and
loading times etc.
Plant can have no of shipping points. That means shipping point should be assign to
plant.
PATH:
IMG
Definition
Logistics Execution
Define, Copy, Delete, check shipping point.
Define shipping point.
Choose existing shipping point. Ex:1000Click on copy as icon and define shipping
point by changing the data. (MSP)
Note: Shipping Point can be group of employees or physical organizational unit
Which is responsible to process deliveries


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ASSIGNMENT
1.Assign Company Code to Company:
PATH:
IMG
Assignment
Assign company code to company.
Choose our company code from position (MUL1) and assign company.
2.Assign Sales Organization to Company Code:
PATH:
IMG
Assignment
Assign Sales Organization to Company Code
Choose our company code from find button (MUL1) select it and click on assign icon
and choose our Sales Organization from the list. Save it and Exit.
3.Assign Distribution Channel to Sales Organization:
PATH:
IMG
Assignment
Assign Distribution Channel to Sales Organization.
Choose our Sales Organization (MUHO) from find button, select it, click on assign
icon and select distribution channels (PS and SS) from the list. Save it and Exit.
4.Assign Division to Sales Organization:
PATH:
IMG
Assignment
Assign Division to Sales Organization.
Choose our Sales Organization (MUHO) from the find button, select it, click on
assign icon and choose our divisions from the list. Save it and go back.
5.Set Up Sales Area (TVTA):
PATH:
IMG
Assignment
Set Up Sales Area.

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Choose our Sales Organization (MUHO) from find button, select it , click on assign
icon and choose 2 Distribution channels from the list, select one distribution channel,
click on assign icon and choose 2 Divisions from the list.
Repeat the same process for another distribution channel also. Save it and Exit.
6.ASSIGN SALES OFFICE TO SALES AREA:
PATH:
IMG
Assignment
Assign Sales Office to Sales Area
Choose our Sales Organization (Sales Area) from find button and select 1 Sales
Area, click on assign icon and choose our Sales Office from the list.
Repeat the same process for another 3 Sales Areas also. Save it and Exit.
7.ASSIGN SALES GROUP TO SALES OFFICE:
PATH:
IMG
Assignment
Assign Sales Group to Sales Office
Choose our Sales Office from find button, select it and click on assign icon, select our
Sales Group from the list. Save it and Exit.
8.ASSIGN PLANT TO COMPANY CODE (M M Assignment):
PATH:
IMG
Assignment
Logistics - General
Assign Plant to Company Code.
Choose our Company Code from find button, select it, click on assign icon, select our
plant from the list. Save it and Exit.
9.SETUP SALES LINE: Sales line is the combination of single Sales Organization,
single Distribution Channel and single Plant. Sales line allows the system to sell
materials from different plants.
It is a pre-requisite for Cross Company Sales.


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PATH:
IMG
Assignment
Assign Sales Organization – Distribution Channel – Plant
Choose Sales Organization from the find button, select the combination, click on
assign icon and choose our plant from the list. Repeat the same process for another
combination also. Save it and Exit.
10.ASSIGN SHIPPING POINT TO PLANT:
PATH:
IMG
Assignment
Logistics Execution
Assign Shipping Point to Plant
Choose our Plant from find button, select it, click on assign icon and select our
Shipping Point from the list. Save it and Exit.
ECO1 Transaction code for display the company structure.
PATH:
IMG
Definition
Copy, Delete, Check Company Code
Click on Organizational Structure
Click on Navigation
Choose our Company Code (Double Click or Choose)


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15

MASTER DATA
Master Data is pool up data. That is going to be created centrally in the System and
made available for documents.
Master data doesn’t change frequently.
CUSTOMER MASTER: We maintain customer details in the form of master data.
Every customer master has a structure, that means it is made up with 3 sections i.e
(a) General Data Section (KNA1): In general data section customer personal
details like Name, Address, Postal Code etc is going to be captured.
KUNNR is the field in KNA1 table where the customer number is going to be stored.
(b) Company Code Data Section (KNB1): In company code data section customers
financial details like reconciliation A/C no, Bank A/C no, Insurance No etc., is going to
be stored.
© Sales Area Data Section (KNVV): In Sales Area data section customer’s Sales,
Shipping, Billing details are going to be captured.
KNBP is a table for customer’s partner functions.
KNVS is a table for customer’s shipping details is going to be stored.
ACCOUNT GROUP: According to “Partner Functions” to each and every partner
one account group is going to be defined and maintained by FICO Consultants.
By using account group we can control customer master. By changing or assigning
“Field Status” to each and every field in the customer master.
FIELD STATUS:
SUPRESS: It hides the field from the Customer Master.
REQUIRED: Value should be maintained.
OPTIONAL: Value may be or may not be maintained.
DISPLAY: Field can be view.
PARTNER FUNCTIONS: In addition to natural partners business treats customers.
a)
b)
c)
d)

Customers (KU)
Vendors (LI)
Contact Persons (AP)
Sales Employee (PE)

Also as a business.


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Depending upon the partner type every partner has to fulfill /perform certain
mandatory partner functions. While making transactions with business.
Ex :
(A)

CUSTOMERS (KU)
--------------------------------------------SP
SH
BP
PY
|
|
|
|
Sold to Ship to Bill to Payer
Party
Party
Party

NUMBER RANGES: To identify the customer we require a unit identifier. i.e
Number. We define one no. range and assign to Account Group with or without
external option. Depending upon the external option system or user has to assign
number internally or externally.
Account
Group
0001
0002
0003
0004

Partner Function

Number

Sold To Party
Ship To Party
Bill To Party
Payer

10
20
30
40

Number
Range
101-200
201-300
301-400
401-500

Current
Number
0
0
0
0

Extension

DEFINE ACCOUNT GROUPS (OBD2):
PATH: IMG
Accounts Receivable and Account Payable
Customer Accounts
Master Data
Preparations for Creating Customer Master Data
Define Account Groups with Screen Layout (Customers)
Select Account Group 0001
Go to details icon, account group 0001 : Name Sold to Party
Check one time Account | |, check account one time A/c if customer belongs to one
time A/c holder.
Output Determination Procedure: Ex:
DB0001
DB0002
DB0003
DB0004

Output for Sold to Party
Output for Ship to Party
Output for Bill to Party
Output for Payer

In SAP we sent different output types, (Inquiry, Quotation, Order confirmation) to
relevant partners (Sold to Party, Ship to Party) thru various transmission mediums.
Ex:(Print, Fax, Email, Telex, EDI etc.,)


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Output can be determined by using component output determination procedure.
System should know from where the output from the determined, whether from IMG
or from Customer A/c Group, depending upon the control that we activate or deactivate. i.e “CHECK ACCESS TO CONDITIONS” in definition of output type.
Maintain field status as in General Data, Company Code Data, Sales Area Data.
DEFINE NUMBER RANGES FOR CUSTOMER ACCOUNT GROUP:
PATH: IMG
Customer Accounts
Master Data
Create number ranges for Customer A/Cs (XDN1)
Click on Change intervals.
Click on insert intervals icon
Specify number range key - specify lower limit of number range and upper
limit of
Number range and specify current no status as a 0(Zero).
Check external option (If the user has to assign number externally)
Save it.
ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUPS:
PATH: same as above and choose our account group 0001 and assign our number
range key, that we defined in the previous step (07). Save it and Exit.

Partner Determination:
Path: IMG
Basic Functions
Partner Determination
Setup Partner Determination
Set up Partner Determination for Customer Master
Go to New Entries
Define Partner Determination Procedure
Ex:
Sold to Party
Select Partner Determination
Double Click on Partner Functions in Procedure
Go to New Entries
Partners

SH, BP, PY and press enter

Click on Partner Determination Procedure Assignment


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18

Select our Customer Group
Click on Partner Functions
Double Click on Account Group Functions
Go to New Entries and
Assign Partner Functions
Ex:

SP
SH
BP
PY

Account Group (ASRI)

Customer Master can be Created.
XD01
VD01
Create

XD02
VD02
Change

XD03
VD03
Display

If you use XD01 then Customer Master is going to be created centrally, that means
Company Code data should be maintained.
If you use VD01, then Customer Master is going to be created with specific to Sales
Area, that means Company Code can not be maintained.
PATH: Logistics
Master Data
Business Partners
Customer
Create VD01 or XD01

ACCOUNT GROUP: Choose Account Group ex:0001 from Account Group overview
icon, double click.
CUSTOMER: (Internal or External) Specify Company Code and Sales Area.
Maintain data in General data session like Name, Address etc., maintain data in
Company Code data session.
Tab1 --- Accounting Management:
Reconciliation Account No: 14000 (nothing but a GL No.)
The value of this field used by the system to post Sales Revenues of this customer in
respective GL A/c.
Sort Key 003 : Sort Key can be used to list out line items of the Customer.
Tab2 --- Payment Transactions: Check Payment history records. This control
allows the system to record payment details of this customer in FD32 (Transaction
Code / Customer Master).


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MAINTAIN DATA IN SALES AREA DATA SECTION:
SALES TAB: Assign Sales District of a Customer. The value of this field used by
the system for statistical information purpose.
PATH: IMG
Master Data
Business Partners
Customers
Sales
Define Sales Districts
Go to new entries > Define Sales Districts
Assign Sales Organization to Sales Group that we defined in IMG. The values of this
fields used by system for statistical information purpose.
CUSTOMER GROUP (KDGRP): Ex: 01 Industrial Customer. Grouping of the
customer to carry out pricing and to generate statistical reports.
PATH: IMG
Master Data
Business Partners
Customers
Sales
Define Customer Groups
Go to new entries and define Customer Group.
ABC CLASS (KLABC): Classify in the customer for ABC Analysis.
CURRENCY (INR): System propose currency by default by depending upon the
Sales Organization statistical currency.
Switch off / Switch on rounding: It is a control to apply rounding profile to the
customer.
ORDER PROBABILITY: Ex: 100% together with Sales Order probability system
determines the chances of completion of line item in the Sales Order.
Ex: If customer makes inquiry, then there is a chances of 30% that he will ask the
Quotation. If Quotation raised, then there is a chances of 70% that he raises the
Purchase Order. Once he raised the Purchase Order, then chances of 100% to
raise Sales Order.
AUTHORIZATION GROUP: In IMG with help of BASIS Consultants we define
authorization to a specific user (IN SUOI), user master records) by which by user can
be restricted from accessing this object (Customer Master).


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ITEM PROPOSAL / PRODUCT PROPOSAL: This is the concept by which user can
place the order on behalf of the customer have been rExularly purchases same
materials with or without default quantity. It works as a order entry tool. We create
item proposal discounts in VA51, where by using document type PV where we
create. When we list out all the materials that customer rExularly purchases and we
assign the document number in Customer Master Sales Area Data Section sales tab
item proposal field. During Sales Order processing user uses option “PROPOSAL
ITEMS”.
ACCOUNTS AT CUSTOMER: Assign account number if Business maintains with
Customer (As a Vendor).
UNITS GROUP: Ex: PAL
purchases.

Assign unit of measure that customer rExularly

EXCHANGE RATE TYPE: Assign exchange rate type for customer. System uses
exchange rate type, if Invoice is going to be settled in currency other than document
currency.
CUSTOMR PROCEDURE FOR PRODUCT PROPOSAL (PP CUST PROC): Ex :
A) PRODUCT PROPOSAL
B) CROSS SELLING
together with document procedure for product proposal. System determines product
proposal or cross billing.
Cross selling is the concept by which business can offer combination material for
ordered material. Ex: for Computer, Computer stand can be suggested.
PRICE GROUP: Ex: 01 Bulk Buyer
Grouping of the Customer to carryout Pricing.
Ex: Condition Type (KO20) used in pricing procedure.
PATH: IMG
Basic Functions
Pricing
Maintain Price Relevant Master Data Fields
Define pricing groups for customers
Go to new entries and define price groups, Save it and Exit.
CUSTOMER PRICING PROCEDURE: Ex: 1 standard Assign pricing procedure to
customer, the value of this field used by the system as a one of the factor to
determine pricing procedure.
FAQ: How System determines pricing procedure?
ANS: System determines pricing procedure by taking 3 factors into consideration
(a) Sales Area
(b) Document Pricing Procedure (VOV8 of OR)
(c) Customer Pricing Procedure (= default pricing procedure)


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PATH: IMG
Basic Functions
Pricing
Pricing Control
Define and Assign Pricing Procedure
Define Customer Pricing Procedures.
Go to new entries and Define customer Pricing Procedure, save it and Exit.
PRICE LIST: Ex: 01 Wholesale
Price List can be defined for group of customers to carry out pricing.
PATH: IMG
Business Function
Pricing
Maintain Price
Relevant Master Data Fields
Define Price List catExories for Customers
Go to new entries and define Price List catExories by customers, save and Exit.
CUSTOMER STATISTICAL GROUP: Ex: 1 Relevant for statistics.
Grouping of the Customer to Generate statistical reports from LIS – Logistics
Information System (Open Data Warehouse).
PATH:
IMG
Logistics Info System
Logistics Warehouse
Updating
Updating Control
Setting : Sales & Distribution
Statistics Groups
Maintain Statistics Groups for Customers.
Go to new entries and define Statistics Groups, save it and Exit.


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SHIPPING TAB: Delivery Priority Ex: 01 High
Assign Delivery Priority to Customer ship to party for a line item in the Sales Order.
The Value of this field used by the system in back order and re-scheduling process.
We maintain delivery priorities in Customer Material Info records as well as
Customer Ship to Party. If you maintain in both areas, then system gives the priority
for customer material info records.
PATH:
IMG
Business Partners
Customers
Shipping
Define Delivery Priorities
Go to new entries and define delivery priorities, save it and Exit.
SHIPPING CONDITIONS: Ex : 10 Immediately.
Assign shipping conditions to customers ship to party. The value of this field used by
the system to determine shipping point for a line item in the Sales Order as a one of
the factor. We maintain shipping conditions in Customer Master ship to party as well
as Sales Documents header level. If you maintain in both areas, then system gives
the priority for Sales document header.
FAQ: How system determines shipping point for a line item in the Sales Order?
ANS: System determines shipping point for a line item in the Sales Order for taking
3 factors into consideration.
A) Shipping Conditions for Customer Master ship to party or Sales Document
header.
B) Sales Document Header loading group from material master
C) Delivery Point.
PATH: IMG
Logistics Execution
Shipping
Basic Shipping Functions
Shipping Point and Goods Receiving Point Determination
Define Shipping Conditions
Go to new entries, define shipping conditions, save it and Exit.
DELIVERY PLANT: Assign Plant that we defined in IMG.
FAQ: How System Determines Plant for a line item in the Sales Order?
ANS: System follows search criteria for determine plant for a line item in the Sales
Order.


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a) System first checks customer material info records. If Plant has been
maintained, then it will take from Customer Material Info records or else it will
go to “b”
b) Customer Master Ship to Party or else it will go to “c”
c) Materials Master or else Plant should be determined manually during Sales
Order Processing.
CHECK RELEVANT FOR POD: Proof of Delivery is the concept by which business
can map “ACKNOWLEDGEMENT” business.
In normal business process business delivery goods to the customer and customer in
term sends acknowledgement for the goods that he received, then only business
raises Invoice. To map this business scenario, proof of delivery can be used in SAP,
that prevents the user from raising Invoice unless and until user confirm
acknowledgment from the customer.
POD TIME FRAME: Specify the time in days up to which system has to wait to
receive POD confirmation, after that period system automatically allows the user to
raise Invoice by assuming that goods reached to the customer place, then user
releases the document by using transaction code VLPODQ (Automatic POD
confirmation).
CHECK ORDER COMBINATION: It is a pre-requisite to combine number of Sales
Orders that belongs to same ship to party for collective processing.
CHECK COMPLETE DELIVERY REQUIRED BY LAW: This control determines
whether Sales Order should be splitted into different deliveries.
PARTIAL DELIVERY PER ITEM:
Blank
A
B
C
D

Partial Delivery Allowed
Create a delivery with Qty > 0
Create only one delivery (also with Qty=0)
Only complete delivery allowed
No limit to subsequent deliveries.

The value of the field determines whether line item can be splitted or not.
MAXIMUM PARTIAL DELIVERIES: 9
The value of this field restricts Max partial deliveries for line item in the Sales Order,
that means Sales Order line item can be splitted by X / 9.
CHECK UNLIMITED TOLERANCE: This indication allows un-limited tolerances for
Sales Order line item QTY.
UNDER DELIVERY TOLERANCE AND OVER DELIVERY TOLERANCE: Specify
the limit in % for Under Delivery Tolerance and Over Delivery Tolerance. Ex: 10%
and 10%
Note: If unlimited Tolerance check, then limit need not be specify.
TRANSPORTATION ZONE: The value of this field used by the System to determine
ROUTE for a line item in the Sales Order as a one of the factor.


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BILLING TAB:
Check subsequent Invoice processing: This control determines that manual
posted invoices should be printed out.
Check Rebates: Active this control as a pre-requisite, if the business want to map
rebates.
Check Price Determination: This indicator allows / is a pre-requisite to determine
price for customer hierarchy.
Invoicing Dates and Invoicing List Dates: Assign factory calendar to generate
invoices and invoice list.
Invoice List: Invoice list is the list of invoices, that particular customer payer should
pay. The list given to collection agent who us the responsible to collect money from
customer for which he will be paid factoring discount.
FAQ: If Customer Payer accepts invoices and invoice list how do you configure it?
ANS:

CALENDERS
PATH: To define Factory Calendar
IMG
Master Data
Business Partners
Customers
Billing Document
Define Billing Schedule.
(a)

Define Public holidays: Click on change icon
Click on create icon
Select with fixed date and click on create icon
Choose day, month specify short and long description and click on create,

go
Back.
Define Holiday Calendar: Click on change icon
Click on create icon
Specify public holiday calendar ID with
Description
Validity Periods, click on assign public holiday
And choose our public holiday from the list and click on assign public
holiday.
(b)

©

Define Factory Calendar: Click on change icon
Click in create icon
Specify factory calendar ID with description
Specify validity periods and assign holiday Calendar ID and check working
Days.


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INCOTERMS: CIF (Costa, Insurance and freight) Assign Incoterms to change freight
Condition Type (KF00) used by the system in pricing procedure.
International Chamber of Commerce of terms of liability for freight in transit.
The terms and conditions defined by ICC that should be avoid by shipper and ship to
party.
Terms of Payment: Ex: 0001 – Payable Immediately Due net
0002 – With in 14 days 3% Cash Discount
With in 30 days 2% Cash Discount
With in 45 days due net.
Assign Payment terms for customer / payer according to which customer should pay
the money and Cash Discount will be granted. Condition type SKTO used in pricing
procedure.
PATH: IMG
Master Data
Business Partners
Customers
Billing Documents
Define terms of payment
Go to new entries and define payment terms.
Path is same for incoterms also.


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Credit Control Area
Assign Credit Control Area to Customer Payer.
Credit Control Area is responsible to grant and to monitor credit for the customer. It
is a responsible organization unit in FICO module.
Payment Guarantee Procedure 0001 – Letter of Credit
0002 – Payment Cards
Assign customer payment guarantee procedure to the customer payer. Together
with document guarantee procedure systems determines payment guarantee
procedure to the sales document line items.
If payment guarantee procedure assigned, then system activates “Receivable Risk
Management Component” by which business can assess the risk that is going to be
involved with customer transactions.
Account Assign Group:
01 – Domestic Revenues
02 – Foreign Revenues
03 – Affiliated Company Revenues
Grouping of the customers to update / to post Sales Revenues, Sales deductions,
Freight revenues and Tax revenues in respective General Ledger Accounts.
It is a pre-requisite for SD and FICO intExration along with Material Management
assignment group.
OUTPUT TAX: Assign Tax responsibility for customer payer.
Ex: 1 – Liable for Tax
0 – Tax Exempt
To determine Tax code, system uses of takes 2 factors in to the consideration.
a.
b.

Tax classification numbers from customer master and material master
Country Keys of customer and delivering plant.
To get the Tax classification number from customer master SAP follows
Search criteria.
1. System first takes Payer if sold to party and payer different. Or else
2. From Ship to Party. Or else
3. From Sold to Party.

PARTNER FUNCTIONS TAB: Check weather relevant partner functions determined
by system according to the partner functions or Account Group. That are:
S P - Sold to Party
S H – Ship to Party
B P – Bill to Party
PY – Payer
Save it and note down the customer number --------- that shown in the status bar.


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FAQ: If ship to party wants to receive shipment on particular day. Ex: Saturday.
How do you configure it?
ANS: By defining Factory Calendar.
PATH:
IMG
Master Data
Business Partners
Customers
Shipping
Define Customers Calendar
In the same path define goods receiving hours. Ex: 001 week days.
Assign these goods receiving hours in General Data Section unloading points tab
and goods receiving hours option.
FAQ: Can you create Customer Material info records from customer master?
Ans: Yes
PATH: XD02 or VD02 Sales Area Data Session
Environment
Then, Customer Material information
FAQ: Can you block customer from customer master?
ANS: Yes
PATH: DX02 or VD02 Sales Area section, Extras, Blocking Data, specify the
particular area.


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MATERIAL MASTER
FICO Settings: Define and Assign Fiscal Year variant to company code. Fiscal
Year is nothing but a Financial Year.
a. K4 – Calendar Year / Dependent. Ex: Jan –Dec
b. V3 – Year Dependent. (Apr – Mar)
Path:
IMG
Financial Accounting Global setting
Fiscal Year (a) Maintain Fiscal Year variant
Assign Company Code to a Fiscal Year variant.
Choose our company code and assign Fiscal Year variant. Save it and Exit.
Define and Assign Chart of Accounts to Company Code: Company Accounts is
nothing but a list of General Ledger Accounts.
Path:
IMG
Financial Accounts
General Ledger
Accounting
G/L Accounts
Master Records Preparations
Assign Company Code to Chart of Accounts.
Choose our company code from position button and assign chart of accounts as a
INT (International). Save it and Exit.

M M Settings
Assign Materials type at company code level (OMSY).
Choose our company code and assign Fiscal Year (Current Year) then specify
posting period accordingly to Fiscal Year variant. If it is K4 then every 3 months as a
period.
Check ABP (Allowed Back posting Periods). Save it and go back.
QTY / Value updating (OMS2): In SAP materials catExorized as a finished
products, semi – finished products, Raw Materials etc.,
Ex: FERT – Finished Products
HALB – Semi-finished Products
ROH – Raw Material
HAWA – Trading Goods
VERP – Packaging Material
LEIH – Returnable Packing Materials
NLAG – Non Stock Material
PIPE – Pipe Line Materials
Materials are valuated usually at company code level or plant level.


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Choose FERT from position button and click on QTY / Value updating control
button. Choose valuation area (Plant) material type (FERT) and check QTY
updating.
Save it and Exit.
Maintain material master is the involvement of MM, PP, QM, SD, WM, FICO
consultants. Material Masters are maintained with specific to SD division.
Material Master can be maintain in MM module as well as SD module depending
upon material type.
If it is finished Product, then Material Master can be maintained in both areas. If it is
HAWA, usually that is going to be maintained in SD.
MM01 – Create
MM02 – Change
MM03 – Display
PATH:
Logistics
Material Management
Material Master
Material
Create (General)
MM01 – Immediately OR
Logistics
Master Data
Products
Material
Other Material
MM01 – Create Material
Internal assignment depending upon the material type,
Industry Sector – Mechanical Engineering
The material that we are going to create belongs to certain industry sectors.
Ex: Chemical Industry, Pharmaceutical Industry etc.,
Material Type: Ex: Finished Product
The material that we are going to created belongs to certain material type.
Ex: Finished Product, Raw-Material, Semi-finished Product etc.,
Depending upon the material type system can understand whether material can be
procured internally or externally. If it is FERT, then both procurements are possible.
If it is a HAWA only external procurement possible so that depending upon the
material type system proposes relevant views.
Click on select views and select


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Basic Data
Sales : Sales Organization Data 1 and 2
Sales : General / Plant Data
General Plant Data / Storage 1
General Plant Data / Storage 2
Accounting Data 1
Click on Organizational levels. Specify our Plant, Storage Location, Sales
Organization, Distribution Channel
Click on continue
Maintain Data in Basic Data 1
Specify description
:
Specify Base Unit of measure: (EA)
Specify Material Group
: 00104
Grouping of the Materials to generate statistical reports and to carryout pricing.
Assign Division: 4W (SD Division)
General item catExory Group: By default it is NORM depending upon the material
type system proposes general item catExory group. The values of this field used by
system as a one of the factor to be determine sales order line item as a Standard
item, Free of Charge item, Service item, Value item and Text item.
Ex:

0001 - Make – to – Order
0002 - Configuration
BANC – Individual Purchase Order
BANS – Third Party Item
DIEN – Service without delivery
ERLA – Structure / Material .Above
LUMF – Structure / Material . Below
BOM – Items Bill of Materials
LEAS – Lease Item
VERP – Packing Material
LEIH – Returnable Packing Material
LEIS – Service or Delivery Item
NLAG – Non-stop Material
VCIT – Value contact item.
Specify Gross and Net Weight 2 Kg and 1 Kg subsequently.
Sales : Sales Organization Data1: Sales Unit specify Sales Unit. Ex: Box
Conversion factor 1 Box = 10 each items.
Delivering Plant: Assign Delivering Plant from where the material to be picked.
Cash Discount: It is a pre-requisite to grant Cash Discount for the material.
Condition type SKTO – SKTV used in pricing procedure.
Tax Classification Number: Assign Tax responsibility of the material. The value of
this field used by system as a one of the factor to determine Tax Code.
QTY Stipulation: Minimum Order Qty Ex:10. The order should be placed with this
minimum Qty, otherwise system issued warning message.

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Minimum Delivery Qty: Ex: 20 each. The order should be delivered for this
stipulated Qty, otherwise system issues warning message.
Delivery Unit: 2 Boxes.
Conditions: Maintain Sales Price (PROO). Ex: 1 Box = 1000/Sales : Sales Organization 2: Ex: 1 – Relevant for statistics.
Grouping of the materials to update LIS with the transactions of the material.
Volume Rebate Group: Ex: 01 – Max Rebate
The value of this field used by system for rebate settlement.
Material Pricing Group: Ex: 01 – Standard Parts.
Grouping of this materials to carryout pricing. Condition type K020 used by the
system in pricing procedure.
Account Assignment Group: Ex: 03 – Finished Goods
Grouping of the materials to post Sales Revenues, Sales Deductions, Freight
Revenues and Tax Revenues in respective GL A/cs.
It is a pre-requisite for FICO and SD intExration along with “ACCOUNT GROUP OF
CUSTOMERS”.
General Item CatExory Group and Item CatExory Group: NORM, the value of this
field used by the system as a one of the factor to determine item catExory for a line
item in the Sales Order,
FAQ: How system determines Item CatExory for a line item in the Sales Order?
ANS: System determines item catExory for a line item in the Sales Order by taking 4
factors into consideration.
a) Sales document type (that end users enter). Ex: TA/OR +
b) Item CatExory Group (from its Material Master). Ex: NORM +
c) Usage of the Material (of the Material). Ex: NIL +
d) Higher level item catExory (of the line item) Ex: NIL
= default item catExory (of line item). Ex: TAN Standard item.
Sales : General / Plant:
Availability check. Ex: 02 – Individual requirements.
It is a checking group of availability check. The value of this field defines whether
and how system has to carry out TOR and availability function for this material if it is
placed in the Sales Order and Delivery document. If it is to be carried out, then what
kind of requirement it has to generate whether individual requirements or collective
requirements.
If it is individual requirements, then system creates demand with MRP for each Sales
Order.


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With individual requirements we can have a clear view of the requirements for this
material in CO09.
If it is summarized requirements, then system create demands with MRP for this
material at a time. Ex: Weekly once i.e. Monday, when the business raises number
of Sales Orders this kind of requirement to be advisable.
It also defines how long system has to wait i.e. as long as MPR elements (Purchase
Requisitions, Purchase Orders etc) existed or up to RLT time (Replenishment lead
time).
RLT is the time that required by business to procure materials internally or externally.
Together with “Checking Rule” it controls availability check.
Check Batch Management: This indicator is a pre-requisite if the material is to be
processed batch wise.
Transportation Group: Ex: 0014 – On Palettes
Grouping of the materials that required similar requirements for transaction. The
value of this field used by the system as a one of the factor to determine “ROUTE”.
Loading Group: Ex: 001 – Crane
Grouping of the materials that required similar requirements for loading. The value of
this field used by the system as a one of the factor to determine “Shipping Point”.
Sales Text: Plant Data / Storage 1 and Storage 2
Maintain data in this 2 views, if the material is to be managed in warehouse.
Extend the material into these 2 views to initiate the stock in storage location or plant.
ACCOUNT1: S – Standard Price
V – Moving average Price
Depending upon the material type system proposes standard price or moving
average price. The value of this field used by system to valuate the stock.
If it is standard price, then system valuates the stock with out taking inventory
movements into consideration.
If it is moving average price system valuates the stock by taking inventory
movements into consideration.
It represents cost price. Condition type VPRS used by system in pricing procedure to
calculate profit margin.
Maintain standard price. Ex: 1000


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DOCUMENTS
Document is nothing but a data container. Document can be used as a proof of
transaction and they can be used to capture transactional details.
To simplify business/ processes documents has been catExorized into 3 sections
with respect to Sales and Distribution.
a.
b.
c.

SALES DOCUMENTS
DELIVERY DOCUMENTS
BILLING DOCUMENTS

SALES DOCUMENTS:
Sales related Business data is going to captured into sales documents.
Sales document types: To map different different processes/transaction, sales
documents has been catExorized into 4 sections.
1.PRE SALES ACTIVITIES: Ex: Inquiry (AF/IN)
Quotation (AG/QT)
2.SALES ORDER:

Ex: Standard Order (TA/OR)
Cash Sales (BV/CS)
Rush Order (SO/RO)
The Cash Sales and Rush Order are called as a special Sales Orders.
3.Customer Outline Agreement:
There are two types. They are

1.Contracts
2.Schedule Agreement.
The difference between contracts and scheduling agreement is
Contracts: These doesn’t have Schedule Agreement.
Schedule Agreement: Schedule Agreements do have schedule times.
a. CONTRACTS (K): Qty contract (KM/NMS)
Value Contracts (WK1, WK2)
Service Contracts (WVSC)
Rental Contract (MV/QP)
Master Contract (GK)
c. SCHEDULING AGREEMENT: Scheduling Agreement with delivering
Schedule called as BL and
Schedule Agreement with delivery order called as LZM
4.CUSTOMER COMPLAINTS:
Ex: Credit Memo requests (G2)
Debit Memo requests (L2)

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Returns (RE)
Subsequent Free of charge Deliveries (SDF)
Free of Charge Delivery (CD) Samples
Invoice correction request (RK)

In addition to these to MAP consignment business process
a. Consignment fill up (KB/CF)
b. Consignment Issue (KE/CI)
c. Consignment Returns (KR/CR)
d. Consignment Pick up (KA/CP)
SALES DOCUMENT ARCHITECTURE
HEADER LEVEL CATEXORIES
VBAK
ITEM LEVEL CATEXORIES
VBAP
SCHEDULE LINE CATEXORIES
VBEP

Del
Bill

IN/AF
Imm
Del

QT/AG

OR/TA

LF

LF

LF

F2

F2

BV/CS
Imm
Del

F2

LF

SO/RO
Imm
Del

F2

To define different types of Sales documents, SAP has given one standard format.
That standard format has an architecture i.e every Sales Document is made up with
3 types
a. Header Level CatExory( VBAK):
At a header level CatExory Data like.. Master Data, Organizational Data etc. is going
to captured. The Data that is going to be captured at header level applies to whole
document. Header Level CatExory is controlled by document type.
Ex: AF, KG, TA, BV, SO etc.
b. Item Level CatExory (VBAP):
Every Sales Documents should have Line Items. Those Line Items contains Data
Ex: Plant, Storage Location, Shipping Point, Route, Net Price etc and the Data
applies to the particular Line Item only. Sales Order Line Items controlled Item
CatExory.
Ex:

TAN
TANN
TAD
TATX
TAW
TAB
TAS

(Standard Item),
( Free of Charge)
(Service Item)
(Text Item)
(Value Item)
(Individual Purchase Order)
(Third party Item)


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Depending upon the Item CatExory Sales Order Line Item can be controlled with
respective pricing, Inventory management, TOR. (Transfer of Requirement).
c. Schedule Line CatExory (VBEP):
Require Delivery Date and Qty to be confirmed is called Schedule lines.
Every Line Item in the Sales Order may have one or more than one Schedule lines.
Schedule Lines of Line Item causes to create delivery document for Line Item, that
means it acts as basis to create delivery document. Depending upon the transaction
type document may have activated or de-activated schedule lines. Schedule Lines
are controlled by Schedule Lines CatExory.
Ex: CP - deterministic the MRP.
CN - No MRP
VBAK
Sold to Party :
Ship to Party :

HLC
Net Ord
Val

P O No:

LIST
Item
Material
No
10 Rice
20 Wheat
30 Tooth Paste
40 Soaps
50 Good Day
60 Service (for Mixer)
70 Papad

735

P O Dt:

Quantity

Item
No

100 Kg
200 Kg
100 Gm
10
1
X
1 Pack

Material
10 Rice
20 Wheat
30 Tooth Paste
35 Tooth Paste
40 Soaps
50 Good Day
60 Service
70 Papad
TOTAL

Req Del

Date

Order
QTY
100 Kg
200 Kg

Today
Today
Tomorrow
Today
1 Pack
Tomorrow

PR

PO

Order
QTY
100 Kg
200 Kg
100 Gm
25 Gm
10
1
X
1 Pack

100
200
100
25
100 I L C
10
100
100
735

Confirmed
Qty
100 Kg
100 Kg
100 Kg
1/2 Pack
1/2 Pack

GR

Pruchase
Goods
Requisition Purchase Order Received


Price

INV

SLC

VP

Vendor
Invoice Pmt

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INVOICE (F2)
Item
No

PICKING LIST (LF)
Item
Material
Order
No
Qty
10 Rice
100 Kg
20 Wheat
200 Kg
30 Tooth Paste 100 Gm
40 Soaps
10
50 Good Day 1
60 Service
X
70 Papad
1 Pack

Picked
Qty
100 Kg
100 Kg
100 Gm
25 Gm
10
1
X
1/2 Pkt

Material

Picked Price
Qty

10 Rice
100 Kg
20 Wheat
100 Kg
40 Soaps
10
50 Good Day
1
60 Service
X
70 Papad
1/2 Pkt
Total
Less : Discount
Total Price

100 Standard
100 Standard
100 Standard
25 Standard + Free of Charge
100 Standard
10 Standard
100 Service
50 Third Party Item
585
25
560

Third Party Sales
Direct Delivery to Customer by Vendor
Individual Purchase Order
Stock Delivered by vendor to business and stock
dispatched from business to customer.
ATP

Auto Check

ATP=WH+PR-PI
WH
Warehouse Stock
PR
Plan Receipts
PI
Plan Issues


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Define Sales Document Header (VOV8)
PATH:
IMG
Sales
Sales Documents
Sales Documents Header
Define Sales Document Types
Go to New Entries

Specify Sale Document Type (Z01 – Standard Order)

SD Doc CatExory: Ex: C – Order
It is a catExorization of Document type as a Order or Inquiry, Quotation etc.,
The value of this field used by the system to determine status of preceding
Documents (IN,QT) and proceeding documents (LF/F2).
The Document type name can be used to define schedule line catExories as a
naming convection.
INDICATOR: Technically it is another classification of document type, that is going to
be stored in a table (TVAK). Ex: RK
Sales Document Block: Values are
Blank – No Block
A – Only Automatic Creation Allowed. Ex: for rebate processes
X – The Sales Document Type is Blocked
The value of this field used by the system to block the document at client level.
Numbers Systems:
Number range internal assignment
Number range external assignment
In IMG we define number ranges one is with in internal another one is with external
and assign to sales document header. So that system or user assigns number
internally or externally to sales document.
Item number increment and sub-item number increment: Assign item numbers
for main item and for sub-items in the Sales Order. So that system generates line
item numbers and increments accordingly to each and every line item.
FAQ: Is it possible to assign line item numbers manually during Sales Order
Processing?
ANS: Yes


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General Control:
Reference Mandatory: The value of this field makes preceding document as a
mandatory to this document type.
Ex: For QT – IN is mandatory
For TA – QT is mandatory.
Check Division: Blank – No dialog
1
- Dialog
2
– Error
The value of this field determines system response when item division defines with
header division.
Ex: Warning or Error
ORDER PROBABILITY: 100%
Together with customer Probability VD01, System calculates the chances of
completion of line Item with the Sales Order
Ex : If it is
Inquiry
AF
30%
Quotation
AG
70%
TA
100%
CREDIT CHECK
Blank
No Credit limit check
A
Run simple credit limit check and warning message.
B
Run simple credit limit check and error message.
C
Run simple credit limit check and delivery block.
D
Credit management Automatic credit control.
Assign whether and how system has to carry out Credit Check for the Sale
Document:
Ex: No Check or simple Credit Limit Check. And Automatic Credit Check
In business granting Materials on credit is quite common. While granting Credit to
the customer the business should be very cautious otherwise Business may be
Bankrupted, so as to avoid this kind of situation SAP delivered a Feature called
Credit Management/ Risk Management by using this tool whereas Credit checks can
be carried out while processing the document. Once the Credit Limit has been
exceeded the system response according to the value that will specify in this field i.e.
A to C
(for simple credit check) OR
D- Credit Management: Automatic change according to OVA8 to define Automatic
credit check)


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SIMPLE CREDIT CHECK:
In simple credit check, system gets credit exposure by comparing customer credit
limit with total value of the document + open Items. If credit limit has been
exceeded then system responds according A to C.

In automatic credit check, system gets credit exposure from total off open orders,
open deliveries, open receivables and open items. If the credit limit has been
exceeded then system response according to the value will specify and OVA8, the
system has to carry out Automatic Credit Check then the value D should be
assigned.
In automatic credit check there are various checks available that are:
• Dynamic credit check
• Static Credit check
• Total Document value
• Next review date
• Critical fields
• Highest dunning level and
• User Level
CHECK CREDIT LIMIT
Blank
No Credit limit check
A
Run simple credit limit check and warning message.
B
Run simple credit limit check and error message.
C
Run simple credit limit check and delivery block.
D
Credit management Automatic credit control.
CREDIT GROUP:
Credit group Credit for Sales Order
01
Group for Sales Order
02
Credit Group for Delivery
03
Credit Group for Goods Issue
As Credit related decisions can be taken only at three levels in Business Processes
i.e.
• Sales Order level.
• Delivery level
• PGI Level (Post Goods Issue)
So that Documents configure for credit management at this three levels.
OUT PUT APPLICATION
OUT PUT APPLICATION [V1 Sales]
Specify the Application Area where the output determination procedure should be
applied as SD Module there are different documents can be generated with different
output types and send to relevant partner function through whereas transmission
mediums

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MATERIAL ENTRY TYPE:
The value of this field determines how the material can be entered in Sales Order
i.e.
by specifying Material No. or by using product catalogue
ITEM DIVISION:
Check Item Division: This control allows the system to copy its division from
Material Master and proposed into Sales Document. If it is de-activated then system
doesn’t copy the Material Division from its material Master and automatically applies
Header division to all the Line Items in the Sales Order.
READ INFO RECORD
CHECK READ INFO RECORD
This allows the system to Read Customer Material Info Record if it is existed.
Check Purchase Order Number: The value of this field checks whether Purchase
Order number is existed or not for this sale document type.
Check Enter Purchase Order Number: If it is activated, then system takes current
date as a P O date.
Commitment Date: The value of this field specifies commitment date for the sales
order line items.
Transaction Flow:
Screen Sequence Group: Ex: AU – Sales Order. The value of this field specifies
with screens with sequence they have to be display during Sales Order processing.
In-completing Procedure: Ex: 11. Is a concept by which SAP reminds the user
about the fields in which values has not been maintained while saving the document.
So that the user will have a choice to maintain data in those fields before saving the
document, otherwise the user will have to face the problem while processing
subsequent documents as the values of those fields will have a greater influence on
subsequent documents. Ex: P O Number, Pricing, Payment Terms and Incoterms.
Transaction Group: Ex: 0 – Sales Order. The value of this field updates indexes of
the sales document type internally. If the value has not been maintain, then system
can not insert the records.
Document Processing Procedure: Assign Pricing Procedure to sales document.
The value of this field used by the system as a one of the factor to determine pricing
procedure.
Status Profile: In IMG to be define status profile to define system statuses as well as
user statuses for this sales document type.
Alternative Sales Document Type 1 : Ex: Assign RO/SO
Alternative Sales Document Type 2 : Ex: Assign CS/BV
Alternative Sales Document types can be assigned to this sales document type, so
that the user will have a choice to switchover into those documents while processing
this document type.


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Pre-requisites:
1. Number ranges should be same.
2. Document catExories A,B,C,D,I,K and L only can be reference as a
alternative sales document types with each other. Indicator should not be set.
3. Sales Documents should be blocked.
4. Un-check item division.
5. Commitment date should be same.
6. Billing plant type should be same.
7. Payment guarantee procedure should be same.
8. Payment Card plan type should be same.
9. Checking group should be same.
Variant: In IMG we define variants with held of ABAPers. Ex: Screen Variants by
which default values, default Tabs can be proposed for a sales document type.
Display Range: UALL – All Items
UHAU – Main Item
UMAR – Selected Item
The value of this field determines which line status can be displayed during Sales
Order processing.
Function Code for Overview Screen: Ex: UER1 – Press Enter to go to General
Over View. The value of this field determines which Tab system has to propose by
default.
Once the user press enter after specifying document type and sales area.
facilitates order entry.

It

Quotation Messages: The value of this field reminds the user about the open
quotations if they are existed at header level or item level in a popup box, then the
user will have a choice to complete those open quotations first or the user can ignore
the open quotations and he can proceed.
Outline Agreement Messages: The functionality is the same like above field, but
system shows message about outline agreements. Additional reference to all
contracts for partner is authorized to release. In business Sold to Party or Ship to
Party may be authorize to release the contracts. If the partner is existed in other
contracts and if they are open, then system takes those documents also into
consideration and shows the message.
Message Master Contract: The value of this field reminds the user about the open
master contracts for contract documents. It is relevant for master contracts.
Product Attribute Messages: The value of this field determines system responses if
product attributes are going to be change during Sales Order processing whether
warning or Error messages.


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Check Incomplete Messages: This indicator determines whether this Sales
Document type can be saved without having values in certain fields that are assign to
incompletion procedure. This field is de-activated then the document can be saved
without having data in those fields. If it is activated then document can not be saved.
Scheduling Agreement: This section deals with only scheduling agreement
document type.
Correction Delivery Type: Ex: LFKO. Assign delivery document type LFKO for
scheduling agreement types to correct the deliveries in scheduling agreement.
System automatically proposes this delivery document type when the user initiates
correction deliveries with reference to this scheduling document types.
USE: Ex: E – Spare Parts
M – Sample
S – Sterilized Parts.
In scheduling agreements one material can be given with different usages. The
usage can be specifies at header level that applies to all line items in the scheduling
agreements.
MRP for Delivery Scheduling type: The value of this field determines whether
system has to carry out MRP on scheduling agreement line items.
Delivery Block: Delivery Block can be specified at scheduling agreement document
header level. So that system proposes delivery block for all items in the scheduling
agreement as some one in the business has to check scheduling agreement before
initiating outbound deliveries.


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Shipping Section
This section deals with shipping activities.
Delivery Type: Ex: LF. Assign Delivery Document Type “LF” for this Sales
Document types. So that system automatically proposes this delivery document type
LF when outbound delivery is going to be initiated with reference to this Sales
Document Type.
Delivery Block: Assign delivery block for sales document header so that system
automatically proposes delivery block for all line items in the sales document as
some one in the business has to check sales document before initiating outbound
delivery.
It is relevant for Free of Charge deliveries.
Shipping Conditions: Assign shipping conditions to sales document header. The
system automatically proposes for all the line items in the Sales Order.
The value of this field used by the system as a one of the pre-requisite to determine
shipping point.
This value will be given priority while determining shipping point. It is relevant for BV
and RO.
Shipping Cost Info Profile: Ex: Standard. In IMG we define shipping cost info
profile in which we can specify transactions planning point, shipping type, shipment
cost calculation procedure etc., That is used by system for shipment and
transportation.
Immediate Delivery: Ex: Blank – Create Delivery Separately.
A – Create Delivery Immediately.
X – Create Delivery Immediately if Qty confirmed today.
The value of this field causes to create immediate delivery document for sales
document.


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BILLING
This section deals with billing activities for this document type.
Delivery Related Billing Type: Ex: – F2
Order Related Billing Type : Ex: - F2
Assign document type for Delivery Related Billing Type and Order Related items in
the Sales Order. System automatically proposes billing document type F2 for this
sales document type when the billing process is going to be initiated.
Inter Company Billing Type: Ex: IV. Assign billing document type IV the system
automatically proposes for inter company billing transactions.
Billing Block: Assign billing block at sales document header level the system
automatically proposes for all the line items in the sales document before initiating
invoice process has some in the business has to check sales document before
initiating invoice process with reference to this sales document type. It is relevant for
Credit Memo request and Debit Memo request sales document types.
Condition Type line Items: Ex: 02. Assign condition type that is used by system as
a base to carryout pricing based on the Sales Order line item cost.
It has a intExration with FICO.
Billing Plan Type: Ex: 01 – Milestone Billing
02 – Periodic Billing
Assign billing plan type for Sales Document header level that applies to all line items
in the Sales Order.
Ex: Periodic Billing. The entire value to be billed in full
amount on each billing plan date. Ex: It can be user rental contracts or maintenance
contracts.
Milestone Billing: The total value to be billed is distributed between the individual
planning dates. It can be a percentage amount or absolute amount. Ex: It can be
used Projects.
Payment Guarantee Procedure: Together with Customer Payment guarantee
procedure system determines payment guarantee procedure for a line item in the
payment guarantee procedure in the Sales Order.
System activates receivable risk management component in FI Module.
Payment Card Plan Type: Ex: 03 – Payment Card. Assign Payment Card plan for
Sales document line item in the Sales Order.
Checking Group: Ex: 01 – Standard. Assign checking group to carry out checks on
payment cards.
Requested Delivery Date / Pricing Date / Purchase Order Date: This section
deals with default dates in sales documents for deliveries, Pricing etc.,


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Lead Time in Days: Ex: 7. System adds current date to the 7 days and proposes
required delivery date in the sales document.
Date Type: Ex: 1 – Day
‘2 – Week
‘3 – Month
Date format for schedule lines can be assigned.
Proposed Pricing date based on the requested delivery date. The value of this field
specifies which date system has to propose by default for pricing.
Proposed Valid from Date: The value of this fields specifies when the document
should come into force.
Check Propose Delivery Date: This indicator takes current date and proposes as a
delivery date. It is relevant for Cash Sales and Rush Sales.
Check Propose Purchase Order Date: This indicator proposes current date as a
Purchase Order date.
CONTRACT
This section deals with contract documents. Ex: SC – Service Contract.
Pricing Procedure Condition Header: Ex: PABROI. Assign pricing procedure for
contract sales document header level i.e. proposed by system automatically for
contract.
Pricing Procedure Condition Item (PABR02): Assign pricing procedure for contract
document item level that applied to line item.
Contract Profile: Ex: 0001 – One Year Contract. In IMG we define contract profiles
in which we define contract starting date, ending date, cancellation rules etc., that is
going to be used by this contract document type.
Billing Request (IRC – Debit Request Memo): Assigning Debit Memo Request to
compensate business in service contracts.
Grand Referencing Procedure: In IMG we define referencing procedure. Ex:
SDGK – Standard. That can be used by the system to assign lower level contracts
to master contracts. Through this referencing procedure system can understand
which fields can be copies which fields can be changes.
It is relevant for master contract document type GK.
Contract Data Allowed: The value of this field specifies whether contract data is
allowed for this document type or not.
If you assign X then the changes that we are going to carried out at header level is
not going to be effected at item level.


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If you assign Y that the changes that we are going to carried out at header level
applies to item level.
Follow Activity Type: Ex: 0003 – Sales Letter. We specifying follow up activity type
for contract sales document type that is to be created when sales activity is defines
as follow up action which is going to be proposed when the user initiate the creating
of follow up action from follow up action work list. Ex: 0003 – Assign to Rent of
Contract (MV).
Path to Create Follow Up Actions outline agreements.
Contract
Subsequent Functions
Follow up actions and maintain selection screen
Click on Execute and Choose all contracts with the follow up action.
Create Sales Activity and go to edit follow up actions then the dialog box will display
in which system proposes sales activity 0003 save it then system automatically
created follow up activity type for selected contracts.
Subsequent Order Type: Ex: AG. Assign follow up order type automatically
created as a subsequent processing. Ex: A maintenance contract is a validity period
of 1 year for that contract follow up order type AG is assign which is to be created 2
weeks before the contract end date. Then go to outline agreements
Contracts
Subsequent Functions
Follow up Actions, then system automatically
proposes follow up order type “AG” that has to be assign to this document type.
Check Partner Authorization: In contracts some partners are authorized to enter to
release the contracts. The value of this field checks whether the partner is
authorized to release the contracts or not.
AA – Sold-to-Party authorized to release the contract.
AW – Ship-to-Party authorized to release the contract.
Check Update Lower Level Contracts: This indicator causes to update lower level
contracts that are assign to Master Contracts.
Availability Check: Business transaction type OR, SO has to confirm the quantities
system has to carry out availability check. In SAP availability check can be
configured by following 3 methods.
a. Availability Check using “ATP” (Availability to Promise) Logic / Planning.
b. Availability Check against Product Allocation.
c. Rule based availability check.
In Rule based availability check system carries out “GATP” (Global Availability to
Promise) in APO system (Advanced Planner and Optimizer).


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CLIENT LANDSCAPE

SCM
SEM

APO

R/3
CRM

BIW
SRM

R/3 transfer the requirements of the Sales Order or the delivery through APO system
thru CIF (Central Interface) and APO carries out GATP and returns the results of the
GATP to R/3.
If system has to carried out GATP in APO system then in R/3 sales document
header level at availability check session in business transaction field document type
should be assigned.
It is not relevant for CS and RO.
Define number ranges for Sales Documents:
Path:
IMG
Sales
Sales Documents
Sales Document Header
Define Number Ranges for Sales Documents (VN01)
Click on change intervals icon.
Click on Insert intervals icon and define 2 number ranges 1 is with external option
and another one is with out external option.
Go to define sales document types (VOV8) choose sales document type and assign
those 2 number keys in number system section.
Define Purchase Order types: Here purchase order types
DFUE – Data Transfer
MUEN – Orally
SCHR – Written
TELE – By Telephone.
Define Order Reasons (OVAU): Go to new entries and define Order Reasons.


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Define Usage Indicators: Here scheduling Agreements line item usages defined.
Ex: Spare Parts, Sample, Serialized Parts.
Assign Sales Area to Sales Document Types: There are 3 Sales Areas in the
Business. Ex: 0001, 01 and 01. If Sales Document Type OR is authorized under
this particular Sales Area then configuration setting:
1. Grouping together Sales Organization
Sales Organization
‘0001

Reference Sales Organization
‘0001

2. Grouping together Distribution Channel
Sales Organization
‘0001

Distribution Channel
’01

‘01

3. Grouping together Divisions
Sales Organization
Division
Division
‘0001
’01
‘01
4. Assign Allowed Order Types to Sales Areas.
Ref Sales Orgn
‘0001

Distn Channel
’01

Division
’01

Sales Doc Type
OR

SALES AREA 2: Ex: 0002, 01, 01. If Sales Document type OR to be assigned to
this Sales Area.
1.Grouping together Sales Organization
Sales Organization
‘0002

Reference Sales Organization
‘0001

2.Grouping together Distribution Channel
Sales Organization
‘0002

’01

‘01

3.Grouping together Divisions
Sales Organization
‘0002

Division
’01

Division
‘01

SALES AREA 3: Ex: 0002, 01, 02.
1.Grouping together Divisions
Sales Organization
‘0002

Division
’02


Division
‘01

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Assign Sales Area To Sales Document Types:
A. Combine Sales Organizations: Choose Sales Organization and assign
same Sales Organization as a Reference Sales Organization. Save it and go
back.
B. Combine Distribution Channel: Choose our Sales Organization and
Distribution Channel and assign same distribution channels as a Reference
Distribution Channels. Save it and go back.
C. Combine Divisions: Choose our Sales Organization and Division and assign
same Division as a Reference Division. Save it and go back.
D. Assign Sales Order Types Permitted for Sales Areas (OVAZ): Go to new
entries and specify reference sales area and assign document types that are
allowed to this reference sales area.
Path:
IMG
Sales
Sales Documents
Sales Document Header
Assign Sales Area To Sales Document Type


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DEFINE ITEM CATEXORY (V0V7)
Path:
IMG
Sales
Sales Documents
Sales Document Item
Define Item CatExories
Item catExory is an indicator. That defines the characteristics of a document item.
Ex: It Controls the type and scope of Pricing, Billing, Delivery. Inventory Posting and
TOR (Transfer of Requirements).
Choose Item catExory TAN and go to detailed icon.
Item CatExory: Specify Key with description.
Business Data Section:
Item Type:

Blank – Standard Item
A – Value Item
B – Text Item
C – Packing Item
D – Material not Relevant.
It is a classification as a standard item, Value item or Text item. Depending up on
the item type system controls that item in the document. That means system treats
an item that refers a physical material differently then the item doesn’t refer the
physical material.

Completion Rule: It is for Quotation and Contract Items. The value of this field used
by the system to establishment completion rule for a line item in the sales document.
Completion rule defines status of the item as a “Completed or being processed”
together with a control that is “Update Document Flow” at copy control of Sales
Document to Sales Document at item level catExory level. This field establishes
completion rule.
Special Stock: In Business certain stock to be created as a special stock for special
business concerns. Ex: Make-to-Order, Configurable Materials, Consignment Stock
and Returnable Packaging.
Consignment Issue: Ex: W
Billing Relevance:
A – Delivery Related Billing document
B – Relevant for Order – Related Billing – Status according to Order Quantity.
The value of this field specifies whether the item catExory is relevant for billing or not.
If it is relevant then how the billing document should be updated.
Billing Plan Type: The value of this field specifies billing plan type for this item
catExory. Ex: For Project Related Items. 01 – Milestone Billing


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For Rental or Maintenance contract item. 02 – Periodic Billing
Billing Block: Assign billing block for sales document line item level as some of the
business has to check sales document line item before initiating billing document.
Ex: Debit Memo items and Credit Memo items.
Pricing: Ex: X – Pricing Standard. The value of this field specifies how the pricing is
to be carried out for this item catExory.
Statistical Value:
Ex: Blank. System will copy item to header totals.
X – No Cumulating Values can not be used for statistically.
Y – No Cumulating Values can be used for statistically.
The value of this field specifies whether line item price copies to header total or not.
Check Business Item: This indicator determines whether line item business data
defers with header business.
Business Data: Sales, Shipping, Billing Data is called Business Data.
Check Schedule Lines Allowed: This indicator allows the system to create
schedule lines for a line item in the Sales Order. It is relevant for contract items.
Item Relevant for Delivery: This indicator allows the system to create schedule
lines for text items.
Check Returns: This indicator specifies that the sales document line item is return
item. Ex: REN
Check Weight / Value Relevant: This indicator specifies that weight and value
should be calculated for a line item in the Sales Order. It is irrelevant for service
item.
Ex: TAD (Service Item)
Check Credit Active: This indicator allows the system to configure Credit Related
Management functions for this item catExory.
Check Determine Cost: This indicator allows the system to calculate cost of the
material for a line item in the Sales Order. It is pre-requisite for condition type VPRS
(Cost) in Pricing procedure.
General Control
Check automatic Batch determination. This indicator allows to determine Batch
automatically for a line item in the Sales Order. It is a pre-requisite for automatic
batch determination.
Rounding Permitted: This indicator allows to apply rounding profile for a line item in
the Sales Order.
Check Order Qty = 1: This indicator allows sales order line item unit (Order Qty) as
a one. It is relevant for WKN (Value Contract Item).

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Transaction Flow:
Incompletion Procedure: Ex: 20. In IMG we define incompletion procedure for
sales document item level by which system reminds the user about the fields in
which values has not been maintained while saving the document.
Partner Determination Procedure: Ex: N. In IMG we define partner determination
procedure by which system determines relevant partner functions at item catExory
level. Ex: Ship to Party.
Text Determination Procedure: Ex: 01. In IMG we define text determination
procedure for sales document item level by which system proposes text for a line
item in the Sales Order.
Item CatExory Statistics Group: Ex: 1. Assign update rule to update LIS at item
catExory level.
Screen Sequence Group: Ex: N. The value of this field specifies which screen in
which sequence that are to be displayed at item level during document processing.
Status Profile: In IMG we define status profile by which we can specify system
statuses and user statuses.
Check Create P O Automatically: In third party and individual purchase items
system has to create P O automatically. This indicator triggers automatic creation of
P O. It is relevant for ALE (Application Link Enabling).
Bill of Material / Configuration: This section deals with BOM and Configurable
Materials.
Ex: TAQ, TAE, TAP (BOM items).
TAC (Configurable Item).
BOM items are nothing but structured materials or recipes structured materials made
up with number of components as a header item as well as sub-items.
The value of this field specifies or determines configuration stratExy for the line item.
That means it can under stand whether correct dependences selected or not.
Material Variant Action: Ex: 2 – Replace Configurable Material (Only in Append).
The value of this field determines system response when system finds material
variant for selected characteristics.
ATP Material Variant: The value of this field determines whether system has to
carryout ATP check on material variants.
Structure Scope: Ex: D – Configuration Possible with BOM exposure. The value of
this field causes to expose BOM during Sales Order processing as a single level
BOM, Multi level BOM, Configuration BOM exposure.
Application: Ex: SD01 – Sales and Distribution. Specify the application area where
the BOM is to be exploded.
Check Variant Matching: This indicator determines variant configuration.


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Create Delivery Group: Blank – Do not form delivery groups.
X – Form Delivery Group with one delivery date
Y – Delivery Group with correlated schedule lines.
We create delivery group for the materials in BOM item if system unable to confirm
the Quantities for all the BOM items in the Sales Order by giving to shipping tab at a
header level in delivery group field.
Check Manual Alternative: This indicator allows the user to choose manual
alternatives for BOM items during Sales Order Processing.
Check Parameter Affectivities: By intExrating with “Engineering Change
Management” cross functionality. The BOM items properties can be changes by
passing certain parameters. Ex: Customer Number, Serial Number, Date.
Value Contracts: This section deals with value contract item catExories. Ex: WKN.
Value Contract Material: Specify value contract item that is going to be participated
in value contract then the system automatically proposes this value contract material
in to value contract document if the user doesn’t specify the value contract material in
value contract document.
Contract Release Control: The value of this field determines system response
when the target value of the contract exceeds actual value. I.e Warning Messenger
or Error Message or Blocking Document.
Service Management: This section deals with service items.
Repairing Procedure: In IMG we define repairing procedure in which we specify
stages and actions that are to be carried out for the service item. Control of resource
related billing and creation of Quotations. This section deals with resource related
items.
Ex: Service Man.
Billing Form: Ex: 01 – Fixed Rate
02 – Costs.
The value of this field specifies how the billing to be carried out for the resource
related items.
DIP (Dynamic Item Processor) Profile: Dynamic item is nothing but a service item.
In IMG we define DIP Profile for dynamic item and assigned at item catExory level.
Define Item CatExory Groups: Depending upon the material type system
catExorized material general item catExory group in the Material Master.
Ex: 0001 – Make –to – Order
0002 – Configuration
BANC – Individual Purchase Order.
BANS – Third Party Item
NORM – Standard.


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Define default values for material type depending upon the material type that the user
uses while creating material master system automatically proposes general item cat
Exory group in the material master. So that general item vcatExory groups should
be assigned to material types. Ex: FERT = NORM.

Define Item Category Usage: Item catExory usage controls system response during
document processing. If the system does not refer to a material but to a text item.
Ex: Batch Split, Text Item, Service Item with / without billing and Free.
While determining item catExories for a line item in the Sales Order system requires
the usage of the material. That means the line item has specific usage according to
that usage it has to respond.
Ex: CHSP – Batch Split
CSEL – Cross Selling
FREE – Free Goods
PACK – Shipping Unit
TEXT – Text Item
VCTR – Value Contract.
Assign Item Categories (VOV4): Every Sales Document line item is going to be
determine automatically by taking 4 factors in to consideration

Sales
Document
Type

Item
CatExory
Group

Higher
Level
CatExory

Usage

Default
Item
CatExory

AF

+

NORM

+

NIL

+

NIL

=

AFN

AG

+

NORM

+

NIL

+

NIL

=

AGN

TA

+

NORM

+

NIL

+

NIL

=

TAN

TA

+

NORM

+

FREE

+

TAN

=

TANN

Define Reasons for Rejection: In business customers may reject certain items or
business can also reject certain items so that the reasons for the rejection should be
specified in the document for statistical information purpose. Go to new entries and
define reasons for rejection.
Date:14.07.2006
Define Schedule Line CatExories (VOV6):
Path: IMG
Sales
Sales Document
Schedule Lines
Define Schedule Line CatExories
CP Deterministic MRP

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Business Data :
Delivery Block: Assign Delivery Block for Sales Document line items at schedule
line catExory level so that system automatically proposes delivery block while
initiating outbound delivery for a line item in the Sales Order.
Movement Type: Ex: 601 – Goods Issue : Delivery. In Inventory Management
Material movements are controlled / signified by movement types depending upon
the movement only system can understand what type of delivery is going take place
Movement Type 1 – Step: In inventory movement the stock updating should take
place at a time at receiving storage location and delivering location in Replenishment
Deliveries (STOs) or manually they should be updated. If automatically, system has
to update the stock in receiving and delivering plant level then that is called as a
Movement Type 1 Step.
Ex: NC – Inter Company Replenishment. Movement Type 643 and Movement Type
1 Step 645.
SALES
DOCUMENTS
TYPE
[ TA ]
+
MATERIAL TYPE
[ FERT ]

GENERAL ITEM
CATEXORY
GROUP
[NORM]
+
USAGE
[NIL]
+
HIGHER LEVEL
GATEXORY
[NIL]


DEFAULT
DEFAULT
MRP
ITEM CATEXORY +
TYPE
= [TAN]
[ PD / NIL ]

SCHEDULE
=
LINE
CATEXORY
[ CP ]

SCHEDULE CATEXORY
ORD TYPE [NB]
TOR
AVT CHECK
PROD ALL

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SAP-SD

HAWA

HAWA

57

TA
+
BANC
+
NIL
+
NIL

TA
+
BANS
+
NIL
+
NIL

=

ND

=

NB

Order Type: If the material is Third Party item then system automatically has to
create purchase requisition for that particular line item in the Sales Order. To create
Purchase Requisition automatically one standard purchase requisition document type
(NB) should be assigned at schedule line catExory level. That assignment triggers
automatic creation of Purchase Requisition.
Ex: For Schedule Line catExory Type CB – Individual Purchase Order
CS – LEx
Item CatExory: Ex: O – Standard. Specify the item catExory of purchase requisition
type by which system can understand whether it is individual purchase order or third
party.
Ex: 0 – Standard
5 – Third Party
Account Assignment CatExory: Assigning Account CatExory (E or 1) by which
account determination take place for third party item.
Check Item Relevant for Delivery: This indicator creates schedule line for a line
item in the Sales Order.
Purchase Requisition Delivery Schedule: It is relevant for individual purchase
order items as system has to create delivery schedule (Goods Issue Date, Loading
Date, Material Availability Date, Transportation Planning Date for Delivery Date).


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Transaction Flow:
Incompletion Procedure: 30 – Delivery Related Schedule Line. In IMG we define
incompletion procedure and assign to schedule line catExory level by which system
reminds the user about the fields in which values has not been maintain while saving
the document.
Check Requirement / Assembly: This control defines that system has to transfer
the requirements for this transaction as well as system starts to create assembly
order. It is a pre-requisite for TOR.
Check Availability: This indicator specifies that system has to carry out availability
check for this transaction.
Check Product Allocation: This indicator specifies that product allocation is active
for this transaction.
Assign Schedule Line CatExories: SAP automatically determines schedule lines
for a line item in the Sales Order by taking 2 factors into consideration.
Item CatExory + MRP Type = Default Schedule Line CatExory.
TAN + PD = CP
TAN + NIL = CP
TAN + ND = CN (Individual P O)
TAN + NB = CS (Third Party)
FAQ: What are the control parameters of Sales Document ?
ANS: Header Level CatExory, Item Level CatExory and Schedule Line CatExory.


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General Business Process

VA11

:- - - - - - - - - - - > MMBE - [Stock Overview]
:
VA01 : VL0IN VF01

VA21

AF -> AG

->

TA :
LF
F2
:
:
:- - - - - - - - - - - > MBIC - [Stock Initialization]

Inquiry AF (VA11):
Path: Logistics
Sales
Inquiry
VA11 – Create
Specify Sold to Party, Validity Period and Quantity.
Item CatExory – AFN
Schedule Line CatExory – AT
VOV8 of AF or IN (Header Level CatExory of Inquiry)
SD Doc CatExory
:A
Probability
: 30%
Screen Sequence Group : AG
Transaction Group
:1
Doc Pricing Procedure
:A
Function Code for Overview Screen : UER2
VOV8 of AFN (Item Level CatExory of Inquiry)
Completion Rule : A
Pricing
:X
Check Business Item
Check Schedule lines allowed.
Item CatExory Assignment:
AF + NORM + NIL + NIL = AFN
VOV6 of AT (Schedule Line CatExory of Inquiry)
No Schedule Lines for Inquiry
Quotation AG (VA21):
Path: Logistics
Sales
Quotation
VA21 – Create


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Specify document type AG or QT and click on create with reference, specify Inquiry
Number, Click on selection list, click on copy icon process document.
Alternative Item: By using this concept business can offer alternative item for line
item in the Inquiry or Quotation. The user has to specify line item number in item
catExory AGN.
VOV8 of AG or QT (Header Level CatExory of Quotation)
SD Doc CatExory
:B
Probability
: 70%
Screen Sequence Group : AG
Transaction Group
:2
Doc Pricing Procedure
:A
Function Code for Overview Screen : UER2
VOV8 of AGN (Item Level CatExory of Quotation)
Completion Rule : AB
Pricing
:X
Check Business Item
Check Schedule lines allowed.
VOV6 of BN (Schedule Line CatExory of Quotation)
No Schedule Lines for Quotation.
Sales Order:
Path: Logistics
Sales
Order
VA01 – Create
Click on create with reference. Specify offer number (QT)
Click on Selection List.
Click on copy
Item CatExory TAN
Schedule Line CatExory CP
MMBE – Stock Overview.
Specify Material Number, Plant, Storage Location and click on execute icon.
Go to MBIC for initializing the Stock.
Specify movement type 561
561 – Receipt Per initial entry of stock balances into un-restricted use.
561E – Receipt Per initial entry of stock balances into un-restricted Sales Order.
561K – Receipt Per initial entry of stock balances into un-restricted consignment.
561M – Receipt Per initial entry of stock balances into un-restricted RTP.
561O – Receipt Per initial entry of stock balances into un-restricted with sub
contracting.

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561Q – Receipt Per initial entry of stock balances into un-restricted Project.
561V – Receipt Per initial entry of stock returnable pack at customer.
561W – Receipt Per initial entry of stock consignment at customer
Specify Plant and Storage Location and Click on enter.
Outbound Delivery (VL0IN)
Path: Logistics
Logistics Execution
Outbound Process
Goods Issue for Outbound Delivery
Outbound Delivery
Create
Single Document
VL0IN – with reference to Sales Order.
Specify Shipping Point, Selection Date (on or after confirmed Qtys Date in the S O).
Specify the Order Number
Specify the Picking Qty
Click on PGI
Invoice (VF01)
Path: Logistics
Billing Document
VF01 – Create
Generate Reports:
Path: Logistics
Sales Information System
Standard Analysis
MCTA – Customer
And maintain selection screen.


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PRICING
Sales Order Configuration:

Revenue Account
Determination
T O R / A V T Check
SALES DOCUMENT

Text Determination
Procedure

Header
Item

Functions

Credit Management /
Risk Management
TAX

TA
TAN

Schedule CP
Line

Output Determination

Shipping Point
Determination

Pricing
Customer

Material

Pricing Procedure:
ACCESS SEQUENCE

V/08
BASE PRICE
( - ) DISCOUNTS

CONDITION TABLES

V/07

V/03

LINK

Data Combination

Values

----> WH+FM+PL1+SA1

=

1000

<--------------------------------> ----> WH+FM+PL1+SA2

=

990

( + ) FREIGHT CHARGES

----> WH+FM+PL2+SA1

=

1100

( + )TAXES

----> WH+RT+PL1+SA1
=
|
|
|
Condition Records (VK11)

1050

NET VALUE PER ITEM

|
|
|
Condition Types (V/06)


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In the above condition types some are mandatory and some are optional,
Mandatory : Base Price and Taxes
Optional : Discounts and Freight Charges
Customer : WH – Whole Sales, RT – Retailer
Material : FM – Fast Moving. SM – Slow Moving
Plant
: PL1 – Plant 1, PL2 – Plant 2
Sales Area: SA1 – Sales Area 1, SA2 – Sales Area 2
Pricing: Price is the calculation of costs. (for Internal purpose), calculation
revenues (for External purpose).

of

To calculate price for particular item certain pricing elements are going to be
participated. Among those pricing elements some are mandatory (Base Price and
Taxes), some are optional (Discounts and Freight). To determine value for particular
pricing element business has to take certain “COMBINATIONS” into consideration
that are “LINKED” to pricing elements. To map this pricing procedure in our SAP
system we use a tool called “CONDITION TECHNIQUE” which is having certain
components that are

Procedure

+
Condition Type

Access Sequence

Condition Table

Condition Records

Condition technique used by system.
Condition Technique: By using condition technique SAP determine Price, Route,
Tax, Partner etc.,
Process Flow:
1.
2.
3.
4.

Define Pricing Procedure (V/08)
Define Pricing Procedure Determination (OVKK)
Maintain Condition (VK11)
Go to VA01

Define Pricing Procedure (V/08):
PATH: IMG
Basic Functions
Pricing
Pricing Procedure
Maintain Pricing Procedure: Choose Standard Pricing Procedure “RVAA01”
Select it
Click on copy as icon and define our Pricing procedure by rename it.
Ex: YPRICE
Click on copy all
Press enter till we get a message “Number of Dependent Entries copies 72”
Save it.

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Select our Pricing Procedure
Click on control data under dialog session
Click on selection (F7)
Delete (Shift + F2)
Save it. “Don’t forget to save it”
Go to New Entries and Maintain Table.

Step Counter Condition Description From To Manual Manda Statistical Print Sub Requi Alternative Alternative Accoun Accu
Type

tory

TTL rement formula

formula

for Cond. for Cond.
Type

10
15
20
25
30

0 PR00
0
1 K004
2 K005
3 K007

Gross Value

Base Val

10
15
15
15

Step: It indicates the position of condition type in pricing procedure.
Ex: Step – 10
Counter – 0
Condition Type – PR00
Counter: System uses the counter to count the steps and also it can be used to
count mini steps of same condition types. So that number of steps can be reduced in
the pricing procedure.
Step 10
Step 15
Step 20
Step 25
Step 30

Counter=0
Counter=0
Counter=1
Counter=2
Counter=3

Condition Type = PR00
Description Gross Value

From 10
From 15
From 15
From 15

Condition Type: It represents Pricing element in pricing procedure as a Base Price,
Discount, Freight and Tax.
Ex:

Condition Type
Description
PR00
Price
K004
Material
K005
Customer / Material
K007
Customer / Discount
Description: System copies description of condition type from its description (V/06)
Ex: PR00 = Price
K004 = Material
K005 = Customer / Material
K007 = Customer / Discount and so on…..
From and TO: These two columns are for 2 purposes
a. As a base to the condition type: From column can be used as a base to the
condition type for calculating further value.


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ting
Key

rals

SAP-SD

Ex:

Step
10
15
20

65
Counter Condition Type
0
PR00
0
0
K004

Description
Price
Gross Value
Material

From
10
15

b. TO: As a range between the steps From and To columns can be used to
specify the range between same condition types. So that depending upon the
condition types system deducts or adds the total value of those condition
types from specifies common source.
Ex:
Step Counter
Cond Type Description From To
15
0
Gross Value
10
20
0
K004
Material
15
25
0
K005
Customer/Mat 15
30
0
K007
Customer Disc 15
35
0
Total Disc Val 16
34
Check Manual: This indicator specifies that specific condition type can be
determined manually during Sales Order processing.
Ex: Discount, Freight Charges.
K004
Manual
K005
K007

Gross Value

Mandatory Check: This indicator specifies that particular condition type is
mandatory in the pricing procedure. The condition type checked with mandatory
option, then value should be maintained for that condition type, otherwise system will
not allow the user to process document. Mandatory condition type should be check
with this option.
Ex: Base Price (PR00)
Output Tax (MWST)

PR00 – Price

Statistical: If the particular condition type specifies as a statistical then the value of
that condition type will not be taken into net value calculates. That condition type
used only for information purpose.
Ex: VPRS – Cost should be specified
SKTO – Cash Discount also should be statistical
Print: The value of this field specifies whether line item can be printed or not.
If it is
Blank It was not printed
X System Prints at item level
S System prints totals level.
Sub-Total: The value of this field determines where the sub-totals are to be stored.
Ex: KOMP – KZWI1
KOMP – KZWI 2
Gross Value 1
Total Discount 2

1
2


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Requirement: Requirement is nothing but a routine PC written by ABAPer
Technical consultant according to business requirement.

(or)

Definition of requirement is “A factor in the condition technique that restricts the
access of condition type”.
Ex: Specific condition types should be included during Sales Order processing and
should be excluded during invoice credit billing document processing.
Ex: For Rebate condition type VO01 to VO06.
23 only in Billing Document
or 24 only in Billing Document.
Step
10

Counter

Condition Type

VO02

Rebate Discount

23 or 24.

To get a requirement from the ABAPer VOFM is a transaction code.
Path:
VOFM
Requirements
Pricing
Select 23 or 24.
Alternative Formula for Condition Type: It is a routine (Formula) written by
ABAPer as a alternative formula for condition type that can be used for instead of
standard formulas. Ex: For Profit Margin alternative formula condition type 11.
Alternative Formula for Condition Base Value: It is a routine (Formula) written by
ABAPer which can be used as a basis to calculate further value for the condition type
instead of using “From” column. Ex: KF00 for KP00 routine no 12 / 13.
12 – Gross Weight
13 – Net Weight can be assigned.
Account Key and Accruals: The Value of Sales Revenues, Sales Deductions,
Freight Revenues and Tax Revenues. Rebate Accruals etc., is going to be posted in
respective GL Accounts in FI module. So that respective condition types should be
assigned to relevant accounting keys which interim assign to respective GL Accounts
in SD and FICO intExration. So that system automatically post respective values in
respective GL Accounts in FICO module.
Ex:
ERL – Sales Revenues
ERS – Sales Deductions
ERF – Freight Revenues
MWS – Taxes on Sales and Purchases
ERB – Rebate Sales Deductions
ERU – Rebate Accruals
EVV – Cash Clearing
PCC – Credit Card Charges
PPC – Cash Payment
PPS – Cheque Payment
UML – Plants Abroad.

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Define Pricing Record Determination (OVKK):
Path:
IMG
Basic Functions
Pricing
Pricing Control
Define Pricing Procedure Determination
System determines Pricing Procedure by taking 3 factors into consideration.
1. Sales Area
2. Document Pricing Procedure
3. Customer Pricing Procedure
= Default Pricing Procedure.
Go to New Entries
Specify your Sales Area
Document Pricing Procedure = A (From VOV8 of OR)
+
Customer Pricing Procedure = 1 (From VD01) = Default Pricing Procedure and
specify condition type PR00 and save it.
Maintain Condition Records (VK11):
Path: Logistics
Master Data
Conditions
Select Using Condition Type VK11 – Create.
Specify PR00
Click on Key Combination and select one condition table
Specify Sales Organization, Distribution Channel, Customer and save it.
Maintain condition records for K004, K005, K007 and KF00.
Go to VA01 and raise the Sales Order.
Select line item, go to goto button Header and Sales.
Go to Item Condition Screen.
Define Own Pricing Procedure:
Process Flow:
1. Condition Table - V/03
2. Define Access Sequence – V/07
3. Define Condition Type – V/06
4. Define Pricing Procedure – V/08
5. Define Determination Pricing Procedure – OVKK
6. Maintain Condition Records – VK11
7. VA01

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Define Condition Table (V/03):
Path:
IMG
Basic Functions
Pricing
Pricing Control
Define Condition Tables
Table is nothing but a combination of variable part, that represents one or more fields
and fixed part i.e. identical for all records.
It defines the structure of the condition records keys.
a. Condition : Allowed Fields
b. Create Condition Tables.
Check Create Condition Tables
Specify Condition Table Number (Between 501 To 999)
Ex: 790, select KDGRP (Customer Group) and MATKL (Material Group) from the
field catalog and click on Generate (Shift+F4), say Yes, Click on Local Object and
save it.
Create another condition table Ex: 791
Select MATNR (Material) from one field catalog, click on Generate, Yes, Local
Object.
Define Access Sequence V/07:
Path:
IMG
Basic Functions
Pricing
Pricing Control
Define Access Sequence
Combination of Accesses to condition records. The access sequence defines the
order in which the system searches for the condition records.
Maintain Access Sequences
Go to New Entries
Define Access Sequence and specify Access Sequence Type
Blank – Access Sequence relevant for Pricing
1 – Access Sequence relevant for Rebate
Ex: ZPR
Select Blank and save it.
Select Access Sequence and click on Accesses Control button under dialog
structure.
Go to New Entries and place the condition tables and specify exclusive option.


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FAQ: What is Exclusive in Access Sequence?
ANS: Exclusive indicator restricts the system to read condition record for particular
condition table if it finds condition records for one condition table. That means it
stops search procedure with one condition table it finds condition records.
Select Access Sequence and click on Fields Control button and press enter.
Define Condition Type V/06:
Path:
IMG
Basic Functions
Pricing
Pricing Control
Define Condition Types
Condition Type specifies that characteristics of condition.
Maintain Condition Types: Go to New Entries and define condition type name with
description.
Assign Access Sequence.
Control Data Section:
Condition Class: B It is a classification of condition type as a Base Price (or
Discount, Freight and Tax).
Calculation Type: C – Quantity. Assign the calculation type according to the
condition type. ( Ex: If it is Freight – Gross Weight or Net Weight and distance).
Condition CatExory: It is another way of classification type to group the same
conditions. Ex: Freight Conditions.
Rounding Rules: Blank – Commercial
A – Rounding Up
B – Rounding Down
Assign rounding profile to the condition type.
Structure Condition: Ex: A – Condition to be duplicated
B – Cumulation condition..
In SAP there are certain materials called structured materials.
Ex: BOM or Configurable Material. To carry out Pricing for these structured
materials structured condition to be defined.
Ex: DUPL – Duplicating condition type. The value is going to be duplicated into
sub-items.
KUMU – Cumulation condition. The value is going to be copies into sub-items and
value can be cumulated.


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Plus or Minus: Ex: Blank – Positive and NExative
X – NExative
A – Positive
Assign Positive or NExative for condition amount. Depending up on this sign the
value of the condition type is going to be deducted or added from specified source.
Group Condition Section: This section deals with Group Conditions has pricing can
be carried out on Group of Objects.
Group Condition: This indicator specifies that this condition defined for Group of
Objects.
Group Condition Routine: With the help of ABAPers routines can be written to map
different business cinereous for Group Conditions. Ex: If the Business wants to grant
discounts based on weight of the Sales Order line items.
Check Rounding Difference Compares: This indicator controls whether rounding
difference settled is for Group conditions with a group key routine. If it is activated
that system compares the condition value at a header level with the total of the
conditions values at item level. The difference added to largest item.
Changes which can be made: Manual Entries.
Ex: Blank – No Limitations
A – Free
B – Automatic entry has a priority.
C – Manual entry has a priority.
D – Not possible to process manually.
The value of this field determines whether specific condition type can be determined
manually or not during Sales Order processing.
Ex: C
Check Header Condition and Item Condition: In SAP there are two types of
condition types are existed.
a. Header Condition: The value of the Header Conditions applies to whole
items in the sales order. Header condition doesn’t have any access
sequence. So that the values should be maintain manually during Sales
Order processing at header level.
For Header Conditions access sequence can be maintain.
Ex: HA00, HB00, HD00
b. Item Condition: The values of the item condition applies to a particular line
item in the Sales Order. So that for item condition access sequence can be
maintain and condition records can be maintain.
Ex: PR00, K004, K005 and K007
Check Delete: This indicator allows the system to delete condition type during Sales
Order processing. This deletion doesn’t effect V/08.
Check Amount / Percentage: This indicator allows the user to change condition
amount during Sales Order processing. This changes doesn’t effect Master Data
(VK11)

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Check Value: This indicator allows the user to change condition value during Sales
Order Processing.
Check Qty Relation: It specifies whether conversion factor for the units of measure
in condition of this type can be changes during document processing.
Ex: 1 Box = 10 each items maintained in condition records. During Sales Order
processing it can be change as a 20 each items.
Calculation Type: This indicator controls to change calculation type during Sales
Order processing.
Master Data Section
Valid From: The value of this field specifies when this condition type is valid in
pricing procedure.
Valid To: The value of this field specifies how long this condition type remains valid.
Reference Condition Type: Another condition type can be referenced to this
condition type. So that condition records can be maintain only for referencing
condition types.
Ex: MW15 – MWST can be reference
AMIZ – AMIW can be reference
Reference Application: Ex: V – Sales & Distribution. Specify application area of
referencing condition type.
Pricing Procedure: So as to use “Condition Supplement Feature” one pricing
procedure should be defines in V/08 and assigned to condition type in this field. The
system automatically applies condition supplement feature during Sales Order
processing.
Deletion from Data Base: The value of this field determines system response if the
condition record is going to be deleted from the database. If it is blank, so that
condition record can not be used in pricing. If it is A, condition record deleted from
database then system gives a popup box in which it will ask whether the condition
records can be deleted or deletion indicator is set. If you set B, condition records will
be deleted but system shows popup box only if the condition records contain
condition supplements.
Check Condition Index: Condition index can be created for particular condition type
to maintain condition records.
Check Condition Update: Together with condition index “Condition Update” allows
to restrict the usage of the condition type for limited Sales Orders or for particular
condition base value or condition value.
Scales Section: Scale is nothing but a range of Qty or Value. In the business when
Qty is going to be increased discount should be increased.
Scale Basis: Assign Scale basis for condition type based on the pricing element.
Ex: C – Qty
Check Value: Ex: A – Descending. Assign checking rule for scale rates.

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Scale Type: Assign Scale type depending upon the pricing element.
A – Base Scale
B – To Scale
C – Graduated to interval scale.
Scale Formula: To map different cinereous in scales with the help of ABAPers
routines can be written in VOFM transaction code.
Unit of Measure: Assign unit of measure the system automatically proposes for
scales while maintaining condition records. Ex: PAL – Pallet Discount.
Control Data 2 Section: It controls the currency conversion where the currency in
the condition records valid with document currency. Ex: In VK11 condition amount
maintain as a INR and Sales Order raised to US Dollars. To calculate condition
value in the document, system multiplies the amount that results from condition
records by the item Qty. Ex: 1 item cost = 1 Dollar. Order Qty = 10 items then
condition value is 10 dollars. This indicator controls whether system carries out
currency conversion before or after the multiplication. If you check this field then
system converts condition value into document currency after multiplication. If it is
uncheck the system converts the condition value into the document currency before
multiplies.
Check Accruals: This indicator specifies that system post the amounts resulting
from this condition type to Financial Account as a accruals. If it is check then system
shows this condition type in Sales Document as a statistical condition. Ex: Freight
Conditions.
Check Invoice List Condition: This indicator specifies that this condition type is for
internal costing purpose.
Check Inter Company Billing: This indicator specifies that this condition type is for
inter company billing. Ex: PI01 – Absolute Amount and PI02 – Percentage Amount.
Check Service Charge Settlement: This indicator specifies that trading contract
conditions should be calculated using the Vendor billing document.
Check Variant Condition: This indicator specifies that this condition type is variant
pricing for configurable materials. Ex: VA00 – Absolute Amount and VA01 –
Percentage Amount.
Qty Conversion: This field controls the Qty conversion during determination of
condition basis. It is only relevant for calculation rule “C” and it is relevant if the
sales Qty unit and condition Qty unit as identical/ If it is de-activated the condition
basis Qty is converted via Qty to the stock keeping unit, this means that the condition
Qty is determined for planned factors. So that changes to the conversion in the
delivery or the orders are not taken into account. If it is activated then system takes
document Qty that means actual Qty.
Exclusion: Specify Exclusion indicator so that system automatically excludes the
condition types that falls below this condition type during Sales Order processing.
Ex: It is relevant for Base Price. So that system automatically excludes all discount
condition types that falls under this base price.

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Pricing Date: Blank – Standard
A – Date of Service Renders (KOMK – FBUDA)
B – Price Date (KOMK – PRSDT)
C – Billing Date (KOMK – FKDAT)
D – Creation Date (KOMK – ERDAT)
E – Order Date (KOMK – AUDAT)
The value of this field specifies when the pricing date to be taken into consideration
for this condition type.
Relevance for Accounts Assignment: Ex: Blank – Relevant for Accounts
Assignment. The value of this field specifies the condition type is relevant for
account assignment.
Text Determination
Text Determination Procedure and Text ID: In IMG we define text Ids and assign ti
text determination procedure to propose text for condition types.

Define Pricing Procedure (V/08):
Path:
IMG
Basic Functions
Pricing
Pricing Control
Select Maintain Pricing Procedures
Go to New Entries and Define Pricing Procedure and Include Condition Type (ZPR)
and save it.
Define Pricing Procedure Determination (OVKK):
Path:
IMG
Basic Functions
Pricing
Pricing Control
Select Pricing Procedure Determination
Go to New Entries and specify your Sales Area, Document Pricing Procedure,
Customer Pricing Procedure and assign default Pricing Procedure and Condition
Type.
Maintain Condition Records (VK11): Specify condition type ZPR and click on
condition records, select condition table and maintain condition record and save it.
Go to VA01 and raise the Sales Order and check the values.


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SYSTEM MODIFICATIONS
Define Pricing Procedure based on Customer classification. Customers are
classified as a A,B,C in KNVV Table/ KLABC field.
Create Condition Table V/03 with KLABC.
Path:
IMG
Business Functions
Pricing
Pricing Control
Define Condition Tables
Condition: Allowed Fields
Create Condition Tables
And specify condition table number and choose field “Standard Price” (STPRS).
STPRS not existed in the field catalog. When the field is not available in the field
catalog then the field can be included in the field catalog by going to condition :
allowed fields option.
Go to New Entries and include field STPRS.

Master Data

RCOMP

KNVV
KNVP

VKORG

MARA

Billing
Document

LIKP

VBRK

LIPS

VBRP

KNVS

VTWEX

Delivery
Document

VBAP
VBEP

KNA1
KNB1

BUKRS

Pricing Communication
Structure

Sales
Document
VBAK

Data Flow
Enterprise
Structure

KOMK

+
KOMP

SPART

=
KOMG

WERKS

[Field Catalog V/03]

LGORT
VSTEL

1. What is the Database field with description (SE12 )
2. Check whether the field is available in KOMK / KOMP / KOMG
3. If not, include in corresponding communication structure.


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Path:
IMG
Sales and Distribution
System Modifications
Create new fields (Using condition technique)
New fields for Pricing
Select use include for new fields in dictionary (Batch Determination)
Specify KOMP in Database field table field
Click on display
Click on Append structure
Click on New Append structure, extend the description and continue
Specify description and specify component ZZSTPRS and specify the component
type STPRS save it.
Click on Local Object and click on check (F2)
Click on Currency / Quantity fields and specify reference table VBAP and Ref field
WAERK, save it, check it and activate it.
Include STPRS in KOMG
Click on display
Click on Append structure
Click on New Append structure, extend the description and continue
Specify description and specify component ZZSTPRS and specify the component
type STPRS save it.
Click on Local Object and click on check (F2)
Click on Currency / Quantity fields and specify reference table VBAP and Ref field
WEARK (Currency Key), save it, check it and activate it.
Go to Conditions : allowed fields
Go to New Entries and include ZZSTPRS save it and go to create condition tables,
specify Condition Table Number and Create condition table with Standard Price click
on create, local object.


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Pricing Exercises
1) Condition Exclusion Group: In the Business it is quite common to have number
of discounts that can be granted to the customers due to certain privilExes. If
Business grants number of discounts then Business incurs loss in the profit margin.
So as to avoid this kind of situation SAP delivered a feature called Condition
Exclusion Group by which can offer best or least favorable condition value or type to
the customer.
Configuration Settings: Define Exclusion condition.
Path:
IMG
Business Functions
Pricing
Condition Exclusion
Condition Exclusion for Group of conditions
a. Define Condition Exclusion Groups: Go to New Entries and Define
Exclusion group with description. Ex: Y001 save it and go back.
b. Assign Condition types to the Exclusion Groups: Go to New Entries and
assign K004, K005 and K007 for Exclusion Group Y001 save it and exit.
c. Maintain Condition Exclusion for Pricing Procedure: Choose our Pricing
Procedure, click on Exclusion, go to new entries and specify sequence
number and assign condition exclusion procedure.
A – Best Condition between condition types.
B – Condition with in the condition type.
C – Best Condition between the Two exclusion groups.
D – Exclusive
E – Least favorable with in the condition type.
F – Least favorable between the Two exclusion groups.

Select A and assign condition exclusion group Y001 and save it.
Go to VA01 and raise the Sales Order and go to conditions and check the values.
Condition Supplement: When the Business wants to give certain discounts
irrespective of any combination till certain period, condition supplement can be use.
For every pricing procedure Base Price is mandatory. So that system automatically
proposes discounts by default along with Base Price in the Sales Order.
Configuration Settings:
1. Define Pricing Process for condition supplement in V/08.
Go to New Entries and assign Condition Type with out any controls.
10 0
PR00
15 0
K004
20 0
K005

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2. Assign Pricing Procedure to PR00 in V/06.
Go to PR00 and assign Pricing Procedure in master data section and save it.
Go to VK11
Specify condition type PR00
Maintain Condition Record
Select Condition line item
Go to goto button, condition supplement and maintain validity
periods
And maintain condition records K004 and K005. Save it and go to
VA01
And raise the Sales Order, go to item condition screen and check condition
supplement effect.
2.a)Scales
Scale is nothing but a range of Qty or Value. In the business when the qty is
going to be increased prices should be decreased and discount should be increased,
for all condition types scales can be maintained.
Go to V/06 of PR00
Scale Basis – C
Check Value – A
Scale Type – Blank – can be maintained in conditions
Save it.
Go to VK11/VK12
Select condition line item
Go to goto button and Scales or Scales icon.
From

1
11
21
31
41
50

1000
900
800
700
600
500 and so on……..

and go to VA01 and raise the Sales Order for 50 items and go to conditions screen
and check scale effect.

2.b) Graduated Scales: In graduated scales system averages the Base Price
depending upon the order Qty. It is a pro-business condition type. Hidden costs can
be mapped.
Ex: If Order Qty = 25
Scale Rate is up to

10 = 300
20 = 290
30 = 280


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The Base Price will be calculated like below
Order Qty is going to be splitted like
st

1 10 Items
nd
2 10 Items
rd
3 5 Items
Total

10*300 = 3000
10*290 = 2900
5*280 = 1400
----------25
7300
-----------

There fore for each item 7300/25=292/Configuration Settings: Go to V/06 and define condition type PR02
Access Sequence – K005
Condition Class – B
Calculate Type – C
Manual Entries – D
Check Item condition
Scale Basis
–C
Check Value
– Blank
Scale Type
– D (VV IMP) and save it.
Go to V/08 and include PR02 instead of PR00. Change PR00 to manual and PR02
is mandatory. Save it and go to OVKK and assign condition type PR02.
Go to VK11 and maintain condition record for PR02. Select condition line item go to
goto button Scales
To
10
300
20
290
30
280 and save it.
Go to VA01 and raise the Sales Order for 25 Items and go to condition screen and
check condition amount for each item.


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Header Conditions
When the Business wants to give certain discounts or when it wants to
charge freight charges for all the line items in the Sales Order (for particular
transaction) Header conditions can be defined.
Header Condition doesn’t have access sequence and access sequence can not be
maintained. So that values for header condition should be determined manually
during Sales Order Processing.
Values of Header conditions applies to whole items in the Sales Order.
Ex: HA00, HB00, HD00 etc.,
Go to V/06 and define HA00 – Percentage Discounts
Access Sequence – NIL
Condition Class – A
Calculation Type – A
Plus or Minus – X
Check group condition
Check Header Condition
V/06 of HB00 – Discount Value
Calculation Type – B
Plus or Minus – X
Check group condition
Manual Entries - Blank
Go to V/08 and include HA00 and HB00 between the discount condition steps with
manual option. Save it.
Go to item condition screen and check HA00 and HB00 values. System doesn’t
propose HA00 and HB00 condition types as those are manual with Header condition
types. So that values should be determined manually.
Go to Sales Order over view screen and click on display doc. Header details icon or
go to goto button, Header, Conditions and specify HA00 and HB00, click on Activate
: New Document Pricing button.
Go to item condition screen and check HA00 and HB00 values.
3.b) HM00 – Net Order Value: If the Business wants to charge Net Order Value
manually during Sales Order processing. HM00 condition type can be determined
V/06 of HM00.
Check Group Condition
Manual Entries – Blank
And go to VA01 and raise the Sales Order.

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Go to V/08 and include HM00 with manual option.
Go to Header condition and include HM00 with value and click on Active:New
document pricing.
4) PN00 – Net Price: Net value for line item can be de-activated manually during
Sales Order processing. System de-activates actual condition types during Sales
Order processing.
V/06 of PN00
Calculation Type – C
Manual Entries – Blank
Check Item Condition
Go to V/08 and include PN00 with manual option.
Requirement = 2
Alt formula for Condition Type = 6
Go to VA01 and raise the Sales Order and determine Net Price of line item manually.
5) PMIN – Minimum Price: By using condition type PMIN line item Net Price can be
determine manually for particular material. The difference amount taken by the
system as a surcharge.
V/06 of PMIN
Manual Entries – C
Go to V/08 and include PNIN after Net Value per Item with Requirement = 2
Alt formula for Condition Type = 15 save it
Go to VA11 and maintain condition record for PMIN.
Go to VA01 and raise the Sales Order and check PMIN effect.
6) SKTO – Cash Discount: Cash Discount can be granted for particular customer
and material. System takes second percent rate of payment Terms.
It is a statistical condition.
Check Cash Discount should be activated in Material Master.
Make sure that Payment Terms in the Customer Master should have been maintain
as a minimum 0002.
V/06 of SKTO
Condition CatExory - E
Go to V/08 and include SKTO with Requirement = 9
Alt Condition Base Price = 11 save it
Go to VA01 and raise the Sales Order and go to item condition screen and check
SKTO Value.


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7) EDI1 and EDI2 – Customer Expected Price and Value: In the Business,
customers express Price for the material. Business may accept it and reject it.
Customers expected price can be received thru EDI system or manually can be
entered. If there is any difference the customer expected price then billing document
can be blocked for that Sales Order. Then concern person in the business can
release the Sales Document by accepting or rejecting customer expected price.
V/06 of EDI1
Condition CatExory - J
V/06 of EDI2
Here calculation Type is B remain same as EDI1
Go to V/08 and include EDI1 with manual option and Alt formula for Condition Type =
8 and include EDI2 also in the same procedure.
Go to VA01 and raise the Sales Order and include EDI1 value manually.
Go to VL01 and VF01 and raise Invoice, system blocks the Document.
Go to V.25
Path: Logistics
Sales
Information System
Work lists
V.25
Release Customer Expected Price
Specify User Name and Sales Area
Click on Execute.
Select Sales Orders and click on release.
Go to VF01 and raise the Invoice and save it.
8) VPRS – Cost: VPRS condition type can be used to calculate profit margin. This
condition copies cost price from the material master (Accounting 1 View). Check
determine cost should be activated at V0V7 of TAN.
V/06 of VPRS
Condition CatExory – G
Manual Entries - D
Go to V/08 and include condition type VPRS with statistical check
Sub-total = B
Requirement = 4
The next step include profit margin with Alt formula for Condition Type = 11 and save
it.

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9)Condition Type AMIZ and AMIN:
AMIW – Minimum Sales Order Value
AMIZ – Minimum Surcharge Value.
Minimum Sales Order value can be charge for particular customer who belongs to a
particular group. If system determine order value doesn’t reach minimum order value
then condition type AMIZ takes the difference amount as a surcharge and
proportionately applied the values among the Sales Order line items.
CONDITION TYPE

AMIW

PRICE GROUP
CONDITION TYPE

02
200/-

SALES ORDER
CUSTOMER PRICE GROUP

02

NET VALUE
AMIW
AMIZ
NET VALUE

NET VALUE PER ITEM
AMIW
AMIZ
TOTAL VALUE

160
200
40
200
ITEM 10 ITEM 20
100
60
125
75
25
15
125
75

In VD01 Customer Price Group should be maintained in the Sales Area Data
Section.
V/06 of AMIW
Puls / Minus – Blank
Manual Entries - D

V/06 of AMIZ
Reference Condition Type AMIW
Check Reference Application
Go to V/08 and include AMIW with statistical
Requirement = 2
Sub-total = D
And include AMIZ, requirement = 2, Alt formula for Condition Type = 13 save it


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Go to VK11 and maintain condition records for 2 materials as a 100 and 60, and maintain
condition records for AMIW for customer price group = 02 as a 200 save it and exit.
Go to VA01 and raise the Sales Order and go to Header Condition Screen.

10)K029 – Material Pricing Group:
It is a group condition. By creating a single condition record. Condition value
can be applies for group of materials.
It is a weight based discount.
V/06 of K029
Plus / Minus = X
Calculation Type – D
Scale Basis – D
Unit of Measure – KG
Go to MM01 and create 2 materials
Base unit of measure – KG
Material Pricing Group – 01
Go to VK11 and maintain condition records for K029 with Material Price Group 01
with scales as follows
1 Kg
11 – 20 Kg
21 – 30 Kg
> 31 Kg

10.00
20.00
30.00
40.00

Go to V/08 and include K029 condition type between discount condition steps.
Go to VA01 and raise the Sales Order for 2 Items.
11.a) Pallet Discounts: Discounts can be given to Full Pallet and on Mixed Pallet.
Surcharge can be charged on insufficient Pallets as well as Mixed Pallet.
Create 2 Materials
Base Unit = PAL
Sales Unit of Measure = EA
Conversion factor 1 Pallet = 50 Each Items.
Condition Type = KP00 – Pallet Discount
Discount can be granted on Full Pallet.
V/06 of KP00
Plus / Minus
–X
Unit of Measure – PAL
Go to V/08 and include condition type KP00 with requirement = 2
Alt formula for condition Base Value = 22
Go to VK11 and maintain condition records for KP00 for Customer.

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11.b) KP01 – Incomplete Pallet Surcharge: Surcharge can be levied on incomplete
pallets.
V/06 of KP01 – Incomplete Pallet Surcharge.
Go to V/08 and include condition type KP01
Alt formula for condition Base Value = 24
Go to VK11 and maintain condition records for KP01 as a Rs.5/- surcharge.


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11.c) KP02 – Mixed Pallet Discount: Discounts can be granted on mixed pallet.
V/06 of KP02
Plus / Minus - X
Scale Basis – C
Check Value - A
Go to V/08 and include condition type KP02 between Discount Condition steps.
Go to VK11 and maintain condition records for KP02 as a Rs.5/- surcharge.
11.d) KP03 – Mixed Pallet Surcharge:
Surcharge can be levy on mixed pallet.
V/06 of KP03
Access Sequence
– K007
Condition Class
–A
Calculation Type
–B
Scale Basis
–C
Check Value
-B
Scale Formula
- 23
Unit of Measure
– PAL
Go to V/08 and include condition type KP03 between Freight Condition steps.
Go to VK11 and maintain condition records for KP03.


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FREE GOODS
Free Goods: In every Business granting Free Goods is quite common to encourage
sales and to grant privilExes. In SAP Free Goods can be configured by following 2
methods.
a. Manual
b. Automatic.
A. Manual: By specifying higher level item catExory for a line item user can
determine Free Goods manually.
Go to Va01 and raise the Sales Order for two line items.
VOV4 of TANN
Sales Document Type = OR
Item CatExory = NORM
Usage = FREE
Higher Level CatExory = TAN

=TANN

B. Automatic Determination: SAP uses condition technique to determine Free
Goods automatically. In automatic Free Goods there are 2 types of Free Goods are
available.
1.Inclusive: In Inclusive Free Goods, system configures Free Goods Qty by
including Free Goods Qty with in Order Qty. That means for 10 Items 1 Item is Free
then system configures Free Goods as a 9+1.
Note: In Inclusive other material can’t be given as a Free of Goods item for order
item.
Ex: For A, B can’t be given.
2. Exclusive: In Exclusive Free Goods can be configured by the system by excluding
Free Goods Qty from the Order Qty. That means for 10 Items 1 Item is free then
system configure Free Goods as a 10+1.
Note: In Exclusive other material can be given as a Free of Goods Item.
Ex: For A, B can be given.
Configuration Settings for Automatic Free Goods Determination:
a. Define Number ranges for Free Goods:
Path:
IMG
Basic Functions
Free Goods
Condition Technique for Free Goods
Number Ranges for free Goods (WC07)
Click on Change Intervals icon
Define Number Range without External option.


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b. Create Condition Table: Create Condition Table with KUNNR/MATNR and
maintain Condition Tables.
Ex: 010 – KUNNR/MATNR
c. Maintain Access Sequence: Define Access Sequence. Ex: NA00 – Free Goods
and Assign Condition Table, that has been created in previous step.
d. Maintain Condition Types: Define Condition Type NA00 and Assign Access
Sequence NA00 and save it.
e. Maintain Pricing Procedure: Define Free Goods Pricing Procedure NA0001 and
Assign condition type NA00.
f. Active Free Goods Determination: Go to New Entries and specify Sales Area,
Document Pricing Procedure, Customer Pricing Procedure, Assign Free Goods
Pricing Procedure and save it.
Determine Item CatExory for Free Goods Item:
OR + NORM + FREE + TAN = TANN
Maintain Condition records for “INCLUSIVE” (VBN1)
Path: Logistics
Master Data
Conditions
Free Goods
VBN1 – Create
Specify Discount Type NA00
Click on Key Combination
Specify Sales Organization, Distribution Channel, Customer and Validity Periods
Maintain Entries
Specify Order Material
Specify Minimum Qty. Ex: 10
Specify From Qty (From where Free Goods are applied). Ex: 10
Specify Unit Measure – EA
Specify Free Goods Qty = 1
Specify Unit of Measure of Free Goods
Specify Calculation formula for Free Goods (Routine)
Standard Routines:
1.PRORATA: If for 100 Materials 20 Materials are Free, then business can say that
buy 100 get 20 free.
If Order Qty is 162 that system automatically grants 32 as a Free Goods Qty. That
means [162*(20/100)].
2.UNIT REFERENCE: For 100 Materials 20 are Free then Business can say that Buy
100 get 20 Free for every full of 100 materials purchased. That means for 162 order
Qty, system automatically grants only 20. That means [100*(20/100)].
3.WHOLE UNITS: For 100 items if 20 items are Free, then Business can say that for
every 100 items get 20 Free for each increment of 100 items. That means if Order
Qty is 162, system grants only 0 as a Free Goods Qty.


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Specify Free Goods CatExory:
Ex: 1 – Inclusive Rebate with Item Generation
Specify Free Goods Delivery Control:
The value of this field determines Delivery of Free Goods with respect to Qty
availability.
Blank – Delivery only takes place rExardless of main item.
A – Delivery only if main item is partially delivered.
B – Delivery only if main item fully delivered.
C – Delivery only if main item is part delivered only with main item.
E - Delivery proportional to Qty in main item.
Save it.
Go to VA01 and raise the Sales Order and check Free Goods.
Control Free Goods Pricing:
Path:
IMG
Basic Functions
Free Goods
Conditions
Free Goods Pricing
Control Pricing for Free Goods Item CatExory
Choose Item CatExory TANN and assign Pricing as a “B”
Maintain Condition Type for 100% Discount
Define Condition Type. Ex: R100 – 100% Discount
Plus / Minus – X
Save it.
Maintain Pricing Procedure for Pricing: Choose our Pricing Procedure and include
Condition Type R100 between Discount condition steps by specifying Requirement =
55
Alternative formula for Condition Base Value = 28 save it and exit.
Set Transfer of Costs to Main Item: The Free Goods costs should be transferred to
main item for CO/PA analysis.
Choose Billing Document Type - F2
Delivery Document Type – LF
Click on details icon, then click on display to change icon.
Again choose F2 to LF and click on item folder.
Choose item catExory TAN.
Go to details icon and check cumulative cost. Save it and exit.
Go to VA01 and raise the Sales Order and check Free Goods item Pricing.


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Exclusive: In Exclusive, system configures Free Goods excluding Free Goods Qty
from Order Qty. That means for 10 items 1 item is free, then system configures Free
Goods as a 10+1.
In Exclusive other items can be given as a Free Goods Item than Order Item.
Maintain Condition Records (VBN1):
Path: Logistics
Master Data
Conditions
Free Goods
VBN1 – Create.
Specify Discount type NA00
Click on Key Combinations and maintain condition records for Exclusive by choosing
Exclusive option.
Click on Exclusive Button without maintain any values.
Maintain Entries
Specify Order Material
Specify Minimum Qty = 10
Specify From Qty = 10
Specify Unit of Measure – EA
Specify Free Goods Qty – 1
Specify Unit of Measure of Free Goods – EA
Specify Calculation Formula – 1
And Assign Free Goods CatExory – 2 – Exclusive
Specify Additional Material for Free Goods (Other Material)
Deliver Free Goods Delivery control and Save it.
Go to VA01 and raise the Sales Order and check the “EXCLISIVE’ effect.
Condition Type NRAB: When the Customer wants to deduct the Free Goods Qty
cost from main item cost and he doesn’t receive Free Goods Qty, condition type
NRAB can be used. NRAB condition type doesn’t display the Free Goods item in
the Sales Order and it deduct the Free Goods Qty cost from the main item cost. That
means for 1 item cost Rs.100/- then for 10 items system charge only Rs.900/- but 10
items can be given.
Note: It applies only for Inclusive option.
Configuration Settings: Define Condition Type NRAB
V/06 of NRAB – Free Goods
Condition CatExory – F – Free Goods Inclusive
Pricing for Inclusive Free Goods without Item Generation: Choose our Pricing
Procedure and include condition type NRAB between Discount condition steps with
Requirement = 59


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Alternative formula for condition Base Value = 29
Save it and exit.
Go to VBN1 and maintain condition records for Inclusive option.
Make sure that Free Goods catExory should have been assign as a 3 – Inclusive
Rebate (Without Item Generation). Save it.
Go to VA01 and raise the Sales Order and check NRAB condition effect.
NOTE: FREE GOODS CAN’T BE CONFIGURED ON DOCUMENTS OTHER THAN
DOCUMENT CATEXORY “C”
Condition Maintenance:
The changes that we are going to carried out during Sales Order level that applies to
only for that particular transaction. The changes doesn’t reflect Master Data.
If the changes should effect, then that should be carried out at Master Data level.
Condition records can be maintain by using VK31, VK11 and V_17.
a. Transaction Code VK12 – Change Condition Records with Key Combination.
Specify Condition Type PR00
Select the Condition Table
Maintain Selection Screen and click on Execute Icon and carry out changes. Save it.
Go to VA01 and raise the Sales Order and check condition amount of PR00 value in
Item Condition Screen.
b. Lower Limit and Upper Limit: To control the user, while manipulating condition
amount during Sales Order processing lower limit and upper limit can be specifies.
This limit can be specifies in 2 areas.
1. At definition of Condition Type:
Path:
IMG
Basic Functions
Pricing
Pricing Control
Define Condition Types
Define Upper Limit and Lower Limit for Condition Type.
These Limits for all the Sales Orders.
3. While Maintaining Condition Records:
Go to VA12 and specify Condition Type
Maintain Selection Screen
Click on Execute
Select Condition Line Item

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Go to goto button
Click on Details
Specify Lower Limit and Upper Limit for condition rates.
Save it.
Go to VA01 and raise the Sales Order and go to item condition screen and
manipulate the amount according the limits. It applies only for specific condition
records.
Change Condition Records: SAP records changes that we are going to carried out
for particular condition records.
Go to VK12 and specify Condition Type
Click on Execute
Environment
Changes
Condition Record and check the report.
MASS MAINTENANCE: To carry out Mass Changes for condition records go to
VK12 and specify condition type
Select all line items
Click on change amount icon and specify Percentage amount and click on copy icon.
If prices should be enhanced with absolute amount, specify absolute amount in
absolute field.
If you want to deduct certain Percentage or certain value, specify – (minus) symbol to
the absolute amount or percentage.
Condition Index: For every condition type we can create condition index by which
we can maintain condition records (V_17 – Create Condition, V/15 – Change
Condition, V/16 – Display Condition).
For Condition Index Condition Table should be created. According to Business
scenario, if business wants to restrict the usage of the condition type and condition
index should be created.
Path:
IMG
Basic Functions
Pricing
Maintain Condition Index
a. Maintain Condition Tables for Index
Specify Condition Table Number
Choose KUNNR/MATNR
b. Activation of Condition Index
By defaults system activates our condition index tables.
c. Change Condition types
Choose K005 and click on copy as icon and define Condition Type as Y005.
Check Condition Update

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Go to V/08 and include condition type (Ex: Y005) between Discount Condition Types.
Go to VK11, specify condition Y005 and maintain records and save it.
Go to VK12, click on select using Index
Select our condition table that we created for condition index.
Maintain selection screen
Click on execute
Change the Condition Value and Save it.
Condition Update: By using Condition Update specific condition type can be
restricted for limited Sales Orders or for a certain condition base value or for specific
condition amount.
Go to V/06 and make sure that Condition Index and Condition updates are activate in
condition type.
Go to VK12, Click on select using Index
Select Condition Index table
Click on Execute Icon
Go to goto button and select Additional Data
Specify a. Max. Condition Value or
b. Max. Number of Orders or
c. Max. Condition Base Value
in limits for Pricing Section and save it.
Go to VA01 and raise the Sales Order 2 times and check the effect.
Copying Rules for Conditions: Conditions and Condition Tables can be copies with
each other.
Same condition types with same condition tables can be copied.
Same condition types with different condition tables can be copies.
Due to this copy control function number of condition records can be copied from
single condition record.
Path to Maintain Copy Control:
IMG
Basic Functions
Pricing
Pricing Control
Copy Control for Pricing Condition
a. Copying Rules for Condition Types: Here source condition K004 can be copied
into target condition table K004.
K007 can be copied into K020 condition type.
K029 can be copied into K029 condition type.
b. Copying Rules for Condition: Here source table ex:4 can be copied into target
table 29. Ex: Customer Group 01 and Customer Pricing Group 01 copied into
Customer Group 02 and Customer Pricing Group 02 by using condition type K020.


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Configuration Settings: Define condition table K020
V/06 of K020
Plus / Minus – X
Scale Basis – B
Create 2 Customers with Customer Group 01, Customer Pricing Group 01 and
Customer Group 02, Customer Pricing Group 02. Maintain Condition Records for
01,01 combination Customer for Condition Type K020.
Go to V/08 and include condition type K020 between Discount condition Types.
Go to VA01 and raise the Sales Order for 01, 01 combination customer.
Go to Item Condition Screen and check whether system has taken K020 value or
not. (System Applies K020 value since condition records are maintained for 01,01
combination) save it and exit.
Go to VA01 and raise the Sales Order for 02,02 combination customer then go to
item condition screen and check K020 values has taken or not. (System doesn’t
apply the value since condition record for K020 for 02,02 combination has not been
maintained)
Go to VK12 of K020 with 01,01 combination
Select condition line item
Click on copy condition icon
Specify the target customer price group 02, target condition type K020.
Click on Execute
Select Copying option and click the continue, save it and go back.
Go to VA01 and raise the Sales Order for 02,02 combination.
Go to Item condition Screen and check K020 value. (Now system takes K020 Value)
Pricing Reports: Pricing Reports can be generated for all kinds of pricing elements.
This process consists of 2 pages.
a. Maintain Pricing Report (V/LA):
Path: IMG
Basic Functions
Pricing
Maintain Pricing Report
Create Pricing Report
Specify Name of the List. Ex: Z1 and Title Pricing Report. Ex:Y005
Press Enter
Select KUNNR/MATNR
Go to Edit
Continue with END (Shift F7) to define the structure.
Select Table Customer/Material
Click on continue and specify the layout with fields and then positions.

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Field Name
Customer Number

Position
Page Header of Pricing Report

Material Number

Item Level of Pricing Report

Release Status

Group Header of Pricing
Report
Page Header of Pricing Report

Condition Type

Text
The Key Field and the
Corresponding text are display

Check Display Sales
Check Display Validity Periods.
Save it and Exit.
b. Run the Report (V/LD): Specify report and click on execute. Maintain selection
screen and click on execute and check the report.
Revenue Account Determination: The values of Pricing Elements that are Sales
Revenues, Sales Deductions, Freight Revenues and Tax Revenues etc., are going
to be posted in respective GL A/cs in FICO Module through Accounting Keys that we
are assign to each and every pricing element in definition of pricing procedure. If
these accounting keys are assigned with respective GL A/cs then system post /
transfer the billing document information into FICO module and shows the status of
the Invoice Documents as “OPEN” otherwise system shows the status of the
document as a “Account Determination Error”.
FICO consultants maintains and provides GL A/cs to the Accounting Keys at
the time of SD and FICO intExration (Transaction Code VKOA). Once the Invoice
has been saved then one accounting document is going to be generated that is “RV”
in addition to other updations. This Accounting Document receives the Billing
Information from Sales Invoice with reference to the Sales Invoice Information. FI
user post Customer Invoice then system automatically shows Invoice Document
status as a “COMPLETED”.

Configuration Setting from FICO Module:
Copy GL A/cs of 1000 to our Company Code.
Path:
IMG
Definition
Copy, Delete, Check Company Code
Click on Co. Org. Object (F6)
Specify From Company Code To To Company Code.
Say yes…….. and specify currency as INR.


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a. Define Variants for Open Posting Periods:
Path:
IMG
Financial Accounting Global Settings
Document
Posting Periods
Define Variants for Open Posting Periods.
Define Posting Period Variant. Ex: 1000
b. Open and Close Posting Periods:
Go to New Entries and specify the posting periods as a 2006 for +, A, D, K, M and S
of 1000 variants.

c. Assign Variants to Company Code: Choose our Company Code and assign
posting period variant as a 1000 and save it.
Assign Financial Document Type “RV”.
SA –
WA – Goods Issue
WE – Goods Receipt
WL – Goods Issue / Delivery
Path: IMG
Financial Accounting Global Settings
Document
Document Header
Define Document Types
Choose Document Type RV – Billing Document Transfer
Select it, Copy it and Rename it.
Click on Number Range Information

Specify our Company Code
Click on Change Intervals
Click on Insert Intervals
Specify Number Range Key
Specify Fiscal Year
Specify the Lower Limit and Upper Limit
Save it and go back and assign that number range key in Number Range field and
save it.


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SD Configuration Settings
1. Create Customer Master by using Transaction Code XD01 and make sure that
reconciliation account, Sort Key, Account Assignment Group (ex:01 – Domestic
Revenues) in Billing Document Tab.
2. Make sure that Account Assignment Group for Material in Sales:Sales Orgn Data
2 maintain in Material Master.
3. Check Master Data relevant for Account Assignment.
Path:
IMG
Basic Functions
Account Assignment/Costing
Revenue Account Determination
Check Master Data Relevant for Account Assignment
a. Materials: Account Assignment Groups: Here Account Assignment Groups for
Materials. Ex: 01 – Trading Goods
02 – Services
03 – Finished Goods etc define. These values are proposed into
Material Master.
b. Customers : Account Assignment Groups: Here Customer Account
Assignment Groups.
Ex:
01 – Domestic Revenues
02 – Foreign Revenues
03 – Affiliated Company Revenues are defined. These values are proposed
into Customer Master.
4. Define Dependencies of Revenue Account Determination:
Path: Path is same as point no 3.
Account Determination: Create condition Tables
Ex:

001 – Customer Group/Material Group/Acct Key
002 – Customer Group/Acct Key
003 – Material Group/Acct Key
004 - General
005 – Acct Key

Define Access Sequences and Account Determination Types
a. Maintain Access Sequence for Account Determination
Define Access Sequence. Ex: KOFI
Assign condition Tables. Ex: 001, 002, 003, 004, 005 that we defined in the
previous
Step.


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b. Define Account Determination Types. Here Account Determination Type Ex:
KOFI
Define and Assign to Access Sequence KOFI
Define and Assign Account Determination Procedures.
Define Account Determination Procedures.
Here Account Determination Procedure Ex: KOFI00 – Account Determination.
Define and condition type for Account Determination KOFI assigned.
Assign Account Determination Procedure:
Choose Billing Document Type F2 and assign Account Determination procedure
KOFI00.

Define and Assign Account Keys:
a. Define Account Key: Here Account Keys is going to be defined.
Ex: ERL, ERS, ERF, MWS, EVV, CPP etc.,
b. Assign Account Keys: Choose our Pricing Procedure and check Accounting
Keys are assigned to condition types or not. Save and exit.
Assign GL Accounts (VKOA) {SD and FICO IntExration}:
Select 004 – General
Go to New Entries and maintain entries.
Application – V : Sales and Distribution
Condition type – KOFI
Chart of Accounts – INT – International
Sales Organization – Our Sales Organization Code
GL Account No – xxx
Save it and exit.
Select 005 – Acct Key and click on details icon.

Application – V : Sales and Distribution
Condition type – KOFI
Chart of Accounts – INT – International
Sales Organization – Our Sales Organization Code
Accounting Key – ERL – Sales Revenues.
Assign GL Account No
Assign remaining GL A/cs for other A/C Keys.
Go to VA01, VL01N, VF01
Go to VF02
Click on Accounting Overview Icon and select accounting document.
Go to VA02 and check the document flow.


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ROUTE DETERMINATION
For each and every line item in the Sales Order Route can be determined
automatically. Route may consists different stages with different transportation
connection points or lExs. The material can be transported from source to
destination by using different mode of transports with different shipment types.
Route can be determined for a line item in the Sales Order. Route can be redetermined at delivery document header level by taking “Weight Group” into
consideration.
a. Define Modes of Transport: Ex: Road, Train or Post.
Path:
IMG
Basic Functions
Routes
Define Routes
Define Modes of Transports and define 01 – Street, 02 –Train, 03 – Ship as a
mode of transport.
b. Define Shipping Types: Ex: Truck, Mail, Train and Ship. Define Shipping types
and assign mode of transport.
Ex:

01 – Truck
02 – Mail
03 – Train
04 – Ship

01 –Street
06 – Postal Service
02 – Train
03 – Ship

c. Define Transportation Connection Point: Transportation Connection Point can
be an Airport, Border Crossing or Railway Station. Transportation connection point
represents source or destination.
Go to New Entries
Specify Transportation Connection Point “Departure” and check type of
transportation connection point. Save it and define another transportation connection
point for Destination.
d. Define Routes and Stages: Choose existing Route
Click on copy as icon and Define Route.
Specify Route, Description, Route ID, Assign Service Agent (Path to Create
Service Agent: Logistics S & D
Master Data
Business Partners
Forwarding Agent
V-11 – Create).
Specify Vendor Number
Company Code
Account Group – 005
Specify the mode of transport (If it is Foreign Trade)
Specify the Shipping Type. Ex: 04 – Ship

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Specify the Shipping Type for lEx. Ex: 04 – Ship
Specify the Shipping Type subsequent lEx. Ex: 04 – Ship
Specify the Distance
Check Relevant for Transportation. It is a pre-requisite for Transportation for this
Route.
Scheduling:
Transit Time in Days: Is the time that company requires to deliver the goods to the
customer via this route. System uses this transit time fro delivery scheduling as well
as other time estimates (ex: Loading Time) to determine the dates by which routes
must be available for picking, packing and loading.
Travel Duration in Hours / Minutes: Specify the number of Hours or Minutes that
Business requires to deliver the goods to the Customer Via this Route.
Transportation Lead Time in Days: Specify the number of days that business
required to organize the shipment.
Transportation Lead Time in Hours: Specify the time in Hours to organize the
shipment.
Specify the allowed weight: Specify the Factory Calendar.
Save it and click on Route Stages control button under dialog section.
Click on Add New Entry Icon.
Specify the Departure Point – HYD
Specify the Destination Point – VJD
Specify the Service Agent
Specify the distance
Specify the lEx indicator.
Ex: Preliminary LEx
Main LEx
Direct LEx
Return LEx
Subsequent LEx.
Select Direct LEx.
Specify Shipping Type 04 and assign Pricing Procedure SDFC00 for shipment
calculation.
Specify Stage CatExory – Transportation
Check Shipping Cost relevant. It is a pre-requisite for calculating shipment cost for
this particular stage by using SDFC00 pricing procedure.
Specify the total duration – 2
Specify the Travel duration – 48 (Hours)
Specify the working times – WTGE2S
Specify Factory Calendar.


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Route Determination
Define Transportation Zone: Transportation Zone represents Ship to Party RExion
or vendor RExion. System uses Transportation Zone as a one of the factor to
determine the route for a line item in the Sales Order.
Go to New Entries and define Transportation Zone for Country.
NOTE: This value proposed into Customer Master General Data Session.
Maintain Country and Transportation Zone for Shipping Point.
Choose shipping point and country and assign our Transportation Zone. Save it and
Exit.
Define Transportation Groups: Ex: 0001 The value of this field proposed into Material Master and used by the system as a
one of the factor to determine Route.
Maintain Route Determination: System automatically determine route for a line
item in the Sales Order by taking 4 factors into consideration.
a. Country of Departure Zone
b. Country of Destination Zone
c. Shipping Conditions (From Sales Document Header)
d. Transportation Group (From Material Master)
Go to New Entries
Specify Country of Departure Zone (IN)
Specify Departure Zone (Ex: Coastal Zone)
Specify Destination Country (IN)
Specify Receiving Transportation Zone
Select the combination and click on Route Determination without Weight Group
(Order)
Go to New Entries
Specify Shipping Conditions, Transportation Group and Assign our Route. Save it.
Go to Item Shipping Tab and check Route Determination.


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OUTPUT DETERMINATION PROCEDURE
In SAP to every Document relevant output can be determined for relevant partner
functions and can be transmitted thru relevant transmission medium.
For Customer “QT” document output can be generated in the form of Smart Forms
with required format by getting Technical Assistance for ABAPers and can be
transmitted by using Local Printer, Fax, Telex, Email, EDI (Electronic Data
Interchange) or main as a transmission medium like QT outer confirmation, Delivery
Note, Shipping notification to C&F Agent, Invoice to Payer can be transmitted.
Output can be determined for specific partner function from Customer Account
Group as well as by using condition technique.
From Account Group output can be determined specific to Partner Function.
From IMG by using condition technique output can be determined. If output
determination procedure carried out from customer account group then it doesn’t
have access sequence functionality.
If output is to be determined from Customer Account Group then certain
configuration settings are required from
IMG
Logistics General
Business Partner
Customers
Control
Define Account Groups and field Selection from Customers
Choose Account Group 0001 – Sold to Party
Go to Details Icon and Carryout Configuration Settings.
If output determination procedure assigned (ex:DB0001) then in OBD2 it will be
reflected. Once it is reflected in OBD2 “Document Tab” it is automatically activated
in Customer Master Sales Area Data Section.
Output Determination Procedure for Sales Order (Order Confirmation by using
condition technique).
Maintain Condition Tables:
Path: IMG
Basic Functions
Output Control
Output Determination using the Condition Technique
Maintain Output Determination for Sales Documents
a. Maintain Condition Tables:
Maintain Output Condition Table for Sales Documents
Condition Table for Output Type. Ex: 007 – Order Type (AWART)
b. Maintain Access Sequence: Here Access Sequence 0002 or 0010 – Order Type
define and Condition Table 007 Assigned.


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c. Maintain Output Types: Here define the following Output Types
AF00 – Inquiry
AN00 – Quotation
BA00 – Order Confirmation
BA01 – EDI Order Response
KRML – Credit Processing
MAIL – Internal Message
RD03 – Cash Sales Invoice
Z003 – Plant Sales Invoice
Choose BA00
Click on Display to Change
Again select BA00 and Click on copy as Icon
Define Output type by Changing Data. Ex: YA00 – Order Confirmation.
General Data: Access Sequence (0010) assign access sequence that has been
defined in previous step.
Check Access to Condition: Depending upon this control system determines output
from Customer Group or by using Condition Technique.
Check Can not be Changed: This indicator determines whether certain outputs
“Direct Mailing” can be changes during Document Processing.
Check Multiple Issuing: This control determines whether output can be determined
multiple types ex: If Sales Order sent to the Sol to Party with 10 line items as a Order
Confirmation after sending Order Confirmation Sold to Party requested to add
another 2 items, so that output can be re-determined by adding 2 line items and
issue to the Sold to Party.
Check Partner Independent Output: This control allows to define output type to
specific partner function.
Check Do Not Write Processing Log: This indicator specify system has to write
processing log or not.

Change Output:
Program: With the help of Technical Consultants Business can inform the customer
about the changes to the output that was already sent to customer. This routine
checks what kind of changes should be effected in the new output.
In the General Data section check multiple issuing should be activated.
Form Routine: Assign the routine that calls up the program.
Replacement of Text Symbals:
Programme: By Technical Assistance we can have different Text and Text Symbols
on output. Ex: Output Title, P O Number and Date.(Default Values)


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Dispatch Time: Ex: Send immediately when saving the application. The value of
this field determines how the output should be dispatched. That means periodic job
allowed or not. Ex: Output type RD03 – Cash Sales Invoice should be assigned with
send immediately (when saving the Application).
Transmission Medium: Assign Transmission Medium thru which output should be
send to the Customer or Partner. Ex: Printout, Fax, Telex, EDI, Simple Mail etc.,
EDI: Electronic Data Interchange is a Sub-System which can be used by SAP to
speak with Non-SAP system by using a concept “I Doc” (Intermediatory Document).
Partner Function: Assign relevant Partner Function to Output Type.
Communication StratExy: Ex: CS01 – Internet/Letter. Assign Communication
StratExy to the output to be transmitted externally.
Time: Check Timing 1 (Periodic Job not allowed). This control determines periodic
job for output processing.
Storage System: The value of this field specifies archiving mode of output of Sales
Documents.
Print: Print Parameter : Sales Organization. Pass the Print parameters to get the
Print.
Mail: This section deals with output type mail.
Document Name: WF MC Specify the folder name thru which output is going to be
transmitted the mails.
Priority: Assign the priority of the folder.
Check Not Changeable: If it is activated only the mail recipient and sender can
change the output.
Click on Mail Title and Texts
Choose Language English and specify text for Internal Mails. Maintain the Text.
Save it and Exit.
Click on Processing Routines: Assign Transmission Medium – 1
Program – RVADOR01
Form Routine – Entry
Form – RVORDER01
Partner Function Step: Assign Partner Functions to relevant transmission mediums.
Ex: Printout SP.
Save it and Exit.


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Maintain Output Determination Procedure
Here define the following Output Determination Procedures
V05000 – Inquiry Output
V06000 – Quotation Output
V08000 – Contract Output
V10000 – Order Output
V10001 – Cash Sales Output
Select V10000 output determination procedure.
Copy and rename it.
Save it and include our output type Y01 instead of BA00 and save it.

Assign Output Determination Procedure
a. Sales Document Items: Choose Item CatExory TAN and Assign Output
Determination Procedure Y001.
b. Allocate Sales Document Header: Choose Document Type ‘OR’ and assign
output determination procedure and output type and save it.
Maintain Condition Records for Output (VV11):
Path: Logistics
Master Data
Output
Sales Document – VV11 – Create
Specify our Output Type
Specify our Sales Document
Sal Doc Type

OR

Partner Function

Trans. Medium

SP

1

Dispatch Type

4

Language

EN

Select Condition line item
Click on Communication
Specify Print Immediately
Click Release after Output and save it.
Go to VA01 and raise the Sales Order
Go to Extras, Output, Header, Edit
Specify our output type Y01
Medium Printout
Partner function SP
Language EN
Click on Communication Method
Logical Destination LP01
Check Output Immediately
Check after Output
Save it
Go to VA02
Go to Extras, Output, Header, Print Preview and Check the Output

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Text Determination Procedure
To exchange the information between the user and the system or between the
Customer and Business text can be determined. It is only a message. Text can be
determined for objects like Customer Master, Material Master, Document Header,
Item, Customer Material info Records, Condition Records, Pricing Condition Records
etc.,
SAP uses Condition Technique to determine Text.
Text can be copied from Customer Master to Document and Document to
Document.
For Customer Master there is no access sequence as customer master is higher
organizational object in Master Data.
Define Text Determination for Customer Master and Define Text Type:
Path: IMG
Basic Functions
Text Control
Define Text Types
Select Customer/S&D
Click on Text Types
Go to New Entries and Define Text Type Ex:Z1 and save it.
Define Text Determination Procedure:
Select Customer/S&D
Click on Change
Go to New Entries
Define Text Determination Procedure. Ex: Z1
Assign Text Type to Text Determination Procedure
Select our Text Determination Procedure
Click on Text ID s in Text Procedure Control button under dialog structure
Go to New Entries and Specify our Text ID. Ex:Z1 and Sequence Number
save it and go back.
Assign Text Determination Procedure to Customer Account Group
Select our Text Determination Procedure
Click on Text Procedure Assignment under dialog structure
Choose out Account Group 0001 and assign our Text Determination Procedure. Ex:
Z1
Save it
Go to XD02 or XD01
Sales Area Data Section
Extras, Text
Specify Language EN
Describe and Specify the Text
save it and exit.

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Text Determination Procedure for Sales Document Header
Text can be determined at Sales Document Header level or it can be imported from
Customer Master. SAP uses Condition Technique to determine text.
Define Text Types:
Path: IMG
Basic Functions
Text Control
Define Text Types (VOTXN)
Select Sales Document Header
Click on Text Types
Go to New Entries and Define Text Type. Ex:Y1
Note: Sales Document Text is going to be captured in VBBK
Define Access Sequence:
Click on Change Icon
Click on Access Sequence Control button under dialog structure
Go to New Entries and Define Access Sequence Number with Description. Ex: 55
save it and exit.

Define Text Determination Procedure:
Go to New Entries
Define Text Determination Procedure. Ex: YT
save it and exit.

Assign Text ID s to Text Determination Procedure:
Select our Text Determination Procedure (YT)
Click on Text ID s in Text Procedure control button under dialog structure.
Go to New Entries and maintain Entries.
Text ID: Assign Text ID (Y1) that we defined in the previous step.
Specify Sequence No. – 10
Check Reference: This indicator specify that the text is reference or copies from
preceding object. (Ex: Customer Master)
Text in Obligatory: Ex: Text will be displayed during copying. The value of this field
specifies whether text is obligatory or not and if it is obligatory the how it is to be
displayed.
Assign Access Sequence Number: Ex:55 and save it.


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Assign Access Sequence for Text ID s:
Select our Text Determination Procedure (YT) and
click on Access Sequence for Text Ids.
Specify our Access Sequence No (Ex: 55)
Specify Sequence No: 10
Text Object - KNVV (Text is going to be copied from Customer Master)
Text ID Ex: Z001 (That we defined from Customer Master)
Partner Function : SP (Sold to Party)
Check all Languages.
Save it and Exit.
Assign Text Determination Procedure to Sales Document Type:
Select our Text Determination Procedure (YT)
Click on Text Procedure Assignment control button under dialog structure
Choose Sales Document Type “OR”
Assign Text Determination Procedure (YT)
Check Text in Overview Screen (Check it the Text is to be displayed in the Sales
Document Overview Screen) save it and exit.
Specify the Sold to Party Number and press Enter and check the system copies text
or not from Customer Master.


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Partner Determination Procedure
In Business in addition to Natural Partners, Customers, Vendors, Contact Persons,
Sales Employees also considered as a Business Partners. These are all different
types of partners. Depending upon the partner type every partner performs certain
Partner Functions while making transactions with Business.
Partner
Customers
Vendors
Contact Persons
Sales Employee

Partner Type
KU
LI
AP
PE

Partner Functions
SP, SH, BP, PY
FA
CP
SE, KB, KM

SAP uses Condition Technique to determine relevant Partner Functions for the
objects like Customer Master, Document Header and Item CatExories.
Partner Determination Procedure to Customer Master:
SAP determines relevant Partner Functions to the Customer Master by following One
“Partner Determination Procedure” that is going to be defined in IMG and assigned
with relevant partner functions depending upon the Account Group.
A. Define Account Group: Ex: Y001 for Sold to Party. Sold to Party performs Ship
to Party, Bill to Party and Payer partner functions also. So that the user should
maintain data in Sales, Shipping, Billing Tabs. So field status should be maintain
“Required or Optional” to each and every field depending upon the field priority.
Path: IMG
Customer Accounts
Master Data
Define Account Group with Screen Layout (Customers)
CPD – One time Customers
CPDA – One time Customer
Go to New Entries
Specify the Account Group Name with Description Ex: Y001 – Sold to Party
One Time Account
Output Determination Procedure.
Maintain field status in General Data, Company Code Data, Sales Data.
Define Number Ranges:
Create Number Ranges for Customer Accounts
Click on Change Intervals Icon
Click on Insert Intervals Icon
Define Lower Limit and Upper Limit Number Range


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Specify the Current Number and External if Customer Number assigned externally.
Save it and exit
Assign Number Ranges to Customer Accounts Group:
Choose our Account Group Y001
Assign Number Range Key
Save it and Exit.

Define Partner Functions:
Path: IMG
Basic Functions
Set up Partner Determination
Set up Partner Determination for Customer Master
Click on Partner Functions control button under dialog structure
Unique
Partner
Name
Partner
Error
Higher level
Function
Type
Group Part Function
SP
Sold to Party KU
07
SH
Ship to Party KU
07
BP
Bill to Party
KU
07
PY
Payer
KU
07

Customer
Hierarchy Type

Error Group: Incompleteness Procedure for Partner Functions. That reminds the
user about the fields in which values has not been maintained while saving the
Document.
Higher level Partner Functions: Some Partners may have superior partner
functions. Then they should be assigned. Ex: Credit Representative (KB) has higher
level partner Credit Manager (KM), that are belongs to Partner Type PE (Personnel).
So that KM should be assigned to Kb as a higher level partner functions.
Unique: This indicator specifies that specific partner function is unique in the Partner
Determination Procedure. That means a single person only performs that partner
functions. Ex: SP
Customer Hierarchy Type: Specify the Customer Hierarchy Type it relevant Partner
is participating in Customer Hierarchy.
Define Partner Determination Procedure: Choose Standard Partner Determination
Procedure “AG” copy and rename it or go to new entries and define Partner
Determination Procedure. Ex: Y1 and save it.


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Assign Relevant Partner Functions to Partner Determination Procedure:
Select our Partner Determination Procedure (Y1)
Click on Partner Functions in Procedure control button
Go to New Entries and Maintain Entries.
Partner
Partner
Determination
Functions
Procedure
Y1
SP
Y1
SH
Y1
BP
Y1
PY

Name

Not
Changeable

Mandatory

Sold to Party
Ship to Part
Bill to Party
Payer

Partner Determination Procedure Assignment: Here Partner Determination
Procedure should be assigned to Customer Account Group.
Choose out Account Group (Y001) and Assign Our Partner Determination Procedure
(Y1) and save it.
Account Group - Function Assignment:
Go to New Entries and Assign SP, SH, BP and PY to Our Account Group (Y001)
save it and exit.
Go to XD01 or VD01 and create Customer Master by using our Account Group and
check relevant mandatory Partner Functioning proposed in Partner Functions Tab.
To confirm our Account Group, go to Extras
check our account group.

Administrative Data in the menu and

Partner Determination Procedure for Sales Document Header:
ASP uses Condition Technique to Determine relevant Partner Functions to Sales
Document Header as well as relevant Partner Functions can be proposed from
Customer Master.

Configuration Settings
Define Partner Functions (SP, SH, BP and PY)
Path: IMG
Basic Functions
Set up Partner Determination
Setup Partner Determination for Sales Document Header
Click on Partner Function Combination button
Check SP, SH, BP, PY defined or not.


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Define Partner Determination Procedure for Sales Document Header:
Choose Standard Partner Determination Procedure (TA)
Copy it and rename it or go to New Entries
Define Partner Determination Procedure (Ex:Y1)
Assign Partner Functions to Partner Determination Procedure
Select our Partner Determination Procedure
Click on Partner Functions in Procedure control button under dialog structure
Go to New Entries and maintain Entries.
Partner
Determination

Partner

Y5
Y5
Y5
Y5

SP
SH
BP
PY

Name

Manual

Sequence

Function
Sold to Party
Ship to Party
Bill to Party
Payer

Save it.
Assign Partner Determination Procedure to Document Type:
Select our Partner Determination Procedure
Click on Partner Determination Procedure assignment control button.
Choose Sales Document Type “OR”
Assign our Partner Determination Procedure
Save it and Exit.
Go to VA01 and raise the Sales Order and specify the Customer Number
Go to goto button, Header, Partners.


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INCOMPLETNESS PROCEDURE
Sales Documents, Delivery Documents according to their architecture contains
certain important fields at each level of Document i.e. Header Level, Item Level,
Schedule Lines. The values of those fields will have a greater influence on
processing of subsequent documents. So that value should be maintain in those
fields before saving the document otherwise user may face certain problems while
processing subsequent Documents. So as to avoid this kind of situation SAP
delivered a feature called “Incompleteness Procedure” which can be defined for at
each level of document. To this Incompleteness Procedure that important fields are
assigned and by using “Status Group” documents can be block at each level of
processing. If values has not been maintained in those fields.
Incompleteness Procedure doesn’t concern whether correct value has been
maintained or not. It concern only whether value has been maintained or not.
Note: Incompleteness Procedure can not be configured for Billing Documents as
billing document doesn’t have any subsequent document.
Configuration Setting for Incompleteness Procedure for a Field Order Reason (AUGRU)

Define Setting Groups: Status Groups Records relevant message about the
missing information and blocks the documents.
Path:
IMG
Basic Functions
Log of Incomplete Items
Define Status Groups
Choose existing status group
Copy and Rename it and check the following
General: This control records certain information about the fields at Header Level.
Ex:PO Number if not maintained.
Check Delivery: This control records certain information about fields. Ex: Shipping
Point at Item level and issued appropriate message on the status bar.
Check Billing Document: This control records appropriate status message if certain
billing information missed. Ex: Payment Terms.
Check Price: This control records appropriate information if data at item level. Ex:
Price has been missed.
Goods Movement: This control records appropriate message if certain information
missed at schedule line level. Ex: Movement Types and Issued appropriate status
message.
It is relevant for Shipping Document.
Picking/Put away: This control records appropriate status message if certain
information missed. Ex: Picking and Put away.

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It is relevant for shipping documents.

Check Packing: This control records appropriate status message if certain
information rExarding packing missed.
Save it and Exit.
Define Incompleteness Procedure
There are predefined incompleteness groups.
A – Sales Header
B – Sales Item
C – Sales Schedule Lines
D – Partner
F – Sales Activity
G – Delivery Header
H – Delivery Item
Click on Procedures control button
Click on Display to Change Icon
Go to New Entries and Define Incompleteness Procedure (Ex: Y1)
Select our Incompleteness Procedure
Click on fields Control button under dialog structure
Go to New Entries and Maintain Entries.
Table – VBAK
Field Name – AUGRU (Order Reason)
Screen for Creating Missing Data – KKAU (Sales : Header Sales)
Assign Status Group – ZZ
Check Warning – This Indicator issues a warning message if the values has not
maintained.
Specify the Sequence Number.
Save it and Exit.
Assign Incompleteness Procedures:
Assign Procedures to Sales Document Type.
Choose our Sales Document type “OR” and Assign our Incompleteness Procedure
(Y1) save it and exit.
Go to VA01 and raise the Sales Order without specifying Order Reason and check
incompleteness procedure effect.


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MATERIAL DETERMINATION
Order Material can be swap with other material. Ex: With the user specified material
A in the Sales Order B can be given to Customer.
When the Business stopped the Production of existing material, that can be swapped
with new material or existing material can be offered with special packing or it can be
used with EAN (European Article Number) number.
SAP uses Condition Technique to Determine
A. Maintain pre-requisites for Material Determination.
a. Create Condition Tables: Ex: 001 – Material Enters (MATWA)
b, Maintain Access Sequence: Access Sequence Ex: A001 Define and Condition
Table 001 (MATNR) Assigned.
c. Define Condition Types: Condition Type A001 Define and Assign to Access
Sequence A001.
d. Maintain Procedure: Procedure A00001 defined and Condition Type A001
Assigned.
B. Assign Procedure to Sales Document Types: Choose Sales Document Type
“OR” and Assign Material Determination Procedure A00001.
C. Define Substitution Reasons: Here substitution reasons Ex: 0005 – Promotion
Defined.
Check Entry: This Indicator allows to print original material on the document.
Check Warning: This indicator issues warning message.
StratExy: A
Automatic – Check A
A - Substitute Products are displayed for selection
B – General Material Determination with selection, without ATP
Outcome Check:
Blank – Item will be replaced
A – Substitution Products are displayed as sub items.
B – As in “A” but only when creating the item in sales.
Save it.


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D. Maintain Condition Records (VB11)
Path: Logistics
Master Data
Products
Material Determination
VB11 – Create
Specify Material Determination Type A001
Specify Validity Periods
Specify Proposed Reasons Ex: 0005 – Promotions
Specify MATWA Material Entered – 779
Material
- 745
Select Line Item
Click on alternative materials icon and list out alternative materials with unit of
measure as well as MRP indicates as 745, 746 etc materials.
Save it.
Go to Va01 and raise the Sales Order for 779 Material and Check Material
Determination.
Select any one of substitute material Ex: 745 or 746.


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CROSS SELLING
Cross Selling is the concept by which business can suggest combination material(s)
for ordered material.
Ex: If the Customer placed the Order for Material Computer, Computer Stand can be
suggested.
During Sales Order Processing system displays list of combination materials in a
popup box. So that the user can explained the features of product and if the
customer agreed to purchase those combination materials user can select otherwise
user can leave it.
SAP uses Condition Technique for Cross Selling
Document Procedure for Cross Selling
+
Customer Procedure for Cross Selling
Along with Sales Area used by the system to determine cross selling.
A. Define Determination Procedure for Cross Selling:
Path:
IMG
Basic Functions
Cross Selling
Define Determination Procedure for Cross Selling
1. Create Condition Tables:
Ex: 011 – Material (MATNR) Defined
2. Maintain Access Sequence:
Access Sequence C001 – Material number Cross Selling Defined and Condition
Table (011) Assigned
3. Define Condition Types:
Condition Type C001 Defines and Assigned with Access Sequence C001.
4. Maintain Procedure:
Ex: C00001 – Cross Selling Procedure Defined and Condition type C001 Assigned.


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B. Maintain Customer / Document Procedure for Cross Selling:
1. Define Customer Procedure for Cross Selling:
Ex: B – Cross Selling defined. Which will be defined in Customer Master Sales Area
Data section Sales Tab.
2. Define Document Procedure for Cross Selling:
Ex: B – Cross Selling
3. Assign Document Procedure for Cross Selling to Sales Document:
Choose Sales Document type “OR” and Assign Document Procedure for Cross
Selling “B” and save it.
C. Define and Assign Cross Selling Profile.
1. Define Cross Selling Profile:
Go to New Entries and Define
Cross Selling Profile. CS0001 – Cross Selling Profile.
Assign Cross Selling Procedure (C00001)
Assign Pricing Procedure for Cross Selling Items. (Zprice)
Specify Cross Selling dialog box indicator
A – Dialog Box Appears only on relevant
Blank – Dialog Box Appears on relevant and after data released.
Check
Check Cross Selling ATP indicator (If system has to carry out ATP check on
Cross Selling items also)
D. Assign Cross Selling Profile:
Go to New Entries and Assign Cross Selling Profile to the Combination of
Sales Area
Customer Procedure for Cross Selling B
Downest Procedure for Cross Selling B
Cross Selling Profile CA0001
Assign Customer Procedure for Product Proposal in Customer Master Sales Area
Data Section Sales Tab Customer Procedure for Product Proposal field.
Ex: B – Cross Selling.
Maintain Condition Records (VB41):
Path: Logistics
Master Data
Products Cross Selling
VB41 –Create


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Specify Material Determination type C001 defined
Click on Key Combination select Key
Specify Validity Periods.
(Create 2 Materials Ex:1307 - Computer and 1308 - Computer Stand).
Specify Order Material - 1307
Specify Suggest Material – 1308
Specify Cross Selling Items Delivered Control
Select Line Item and Click on alternative Materials
Specify Validity Periods and List out suggested materials and save it.
System shows Cross Selling Item in Popup Box give Qty and copy it then system
gives 2 line items.


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ITEM PROPOSAL AND PRODUCT PROPOSAL
Is the concept by which user can placed the order material on the Customer that he
rExularly purchased. Its works as order entry tool its facilitate order entry Document
Type PV can be defined.
SD Doc CatExory – C
Go to VA51 and specify Document Type PV and Sales Area
Specify Description
Specify Validity Periods
List out the Materials which he rExularly purchases with or without default Qty.
Save it and note down the Document Number. (Ex: 2308)
Go to VD02 of Customer Master Sales Area Data section Sales Tab
Specify Item Proposal Document Number in Item Proposal Field. (Ex: 2308) and
save it.
Go to VA01 and specify Document Type “OR”
Specify Sold to Party Number and Click on Propose items icon or go to Edit and
Propose Items.
Click on default with or without Qty options.
Material Listing / Exclusion
In Business some Materials can be given to the Customers some can not be given to
the Customers. Allowed Materials can be listed and un-allowed Materials can be
Excluded. In the user entered un-allowed material to the Customer then system
issues a error message. SAP used Condition Technique for Material Listing and
Exclusion.
Path:
IMG
Basic Function
Listing / Exclusion
a. Maintain Condition Table for Listing / Exclusion:
Here Condition Table Ex: 001 – KUNNR/MATNR (Customer / Material)
b. Maintain Access Sequence for Listing / Exclusion:
Here Access Sequence Ex: A001 – Listing
B001 – Exclusion Define
Condition Table 001 – KUNNR / MATNR Assigned for A001 and B001.
c. Maintain Listing / Exclusion Types:
Here Condition Type Ex: A001 – Listing
B001 – Exclusion defined and Access Sequences A001 and B001 assigned
respectively. Save it and exit.

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d. Procedure for Maintaining Listing / Exclusion:
Here Procedures Ex: A00001 – Listing
B00001 – Exclusion defined and condition types A001 and B001 Assigned
respectively.
e. Activate Listing / Exclusion by Sales Document Type:
Choose Sales Document Type “OR” and Assign A0001, B00001 Procedures.
Maintain Condition Records (VB01)
Path: Logistics
Master Data
Products
Listing / Exclusion
VB01 – Create
Specify Listing / Exclusion Type (A001)
Select Condition Table KUNNR / MATNR
Specify Customer Number
Specify Validity Periods and List out all the Materials that are allowed for this
Customer.
Go to VA01 and raise the Sales Order with a Material which has not been listed in
condition Records and check system response.
Customer Material Info Records (VD51)
Is one kind of Master Data in Sales and Distribution where we can maintained
Customer Own description for the Material. In addition to this Plant, Delivery
Priorities, Splitting Criteria, Under Delivery and Over Delivery Tolerance etc., can be
maintained. If the data maintained in Customer Master Ship to Party as well as
Customer Material Info Records. SAP always gives the priority for Customer Master
Info Record only. It ignores remaining areas.
Check Read Info Records should be activated in VOV8 of “OR”
Go to VD51
Path: Logistics
Logistics Execution
Master Data
Customer Master Information
VD51 – Create
Specify Customer Number, Sales Organization, Distribution Channel
Specify Customer Material (XYZ)
Select Line Items
Go to details Icon
Specify Customer Description and Maintain Plant, Delivery Priority etc and save it.
Go to VA01 and raise the Sales Order and specify Customer Material Number or
description.


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CREDIT MANAGEMENT / RISK MANAGEMENT
In Business Credit Sales is quite common when business grants materials on credit.
It should be very cautious while granting Credit to the Customers, otherwise
Business may be bankrupted. To avoid this type of situation SAP delivered a feature
called “Credit Management / Risk Management”.
By using Credit Management component Business can carryout different kinds of
Credit Checks while processing Sales Documents. If the Credit Limit exceeds during
Sales Order processing then Sales Order can be blocked for outbound delivery
processing then concern person in the Business “Credit Representative or Credit
Manager” may take certain decision I e Allowing the Sales or Rejecting the Sales.
By using Risk Management component business can take ”Collateral Security” (ex:
LOC – Letter of Credit or Payment Card) so that risk can be minimized.
Credit Management: By using this component by closely intExrating with FICO
Module 2 kinds of Credit Checks can be carried out, that are:
a. Simple Credit Check: In simple Credit Checks system compares Credit exposure
with Customer Payers Credit Limit and if Credit Limit exceeded then system
response by giving warning, error or delivery block according to the value that we set
at VOV8 of “OR” in Check Credit Limit field. In simple Credit Check system gets
Credit Exposure from the total of the Net Document value and value of the open
items.
b. Automatic Credit Check: In Automatic Credit Check, system get the Credit
exposure like simple credit check but it takes open orders, open deliveries, open
receivables and open items to compare customer payer credit limit. In Automatic
Credit check different types of credit checks are available. Ex: Static, Dynamic,
Document Value, Critical Fields, Next Review Date, Open Items, Oldest Open Items,
Highest Dunning Level and User Exit Level.
If Credit Limit exceeded, then system response according to the value that we set at
OVA8 of “OR” definition of Automatic Check i.e. Warning, Error or Sales Order
Blocking.
Configuration Setting from FICO Module: Credit Control Area is a Physical
Individual Organizational Unit in FICO Module. Which is responsible to monitor and
to grant credit for the customers.
One Credit Control Area can be Assign to number of Company Codes.


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COMPANY
CREDIT CONTROL AREA
Company Code 1

Company Code 2

Path:
IMG
Definition
Define Credit Control Area
Choose existing Credit Control Area. Ex: 1000
Click on Copy as Icon and Define Credit Control Area by changing data.
Currency: Assign the Currency INR for the Credit Control Area.
Update Group: This group updates open orders value, open delivery value, open
billing values for the credit. If you Assign Update Group 000012 then:
a. Sales Order: It increases open order value for delivery relevant schedule lines.
b. Delivery: It reduces Open Order Value from Delivery relevant schedule lines and
increases open delivery value.
c. Billing Document: It reduces Open Delivery Value and Increases Open Billing
Value.
d. Financial Accounting Document: It reduces Open billing Document Value and
Increases Open Items.
If you Assign Update Group 000015 then:
a. Delivery Document: It increases Open Delivery Value and Increases open Billing
value.
b. Financial Accounting Document: It reduces Open billing Document Value and
If you Assign Update Group 000018 then:
a. Sales Order: It increases open delivery value.
b. Billing Document: It reduces Open Delivery Value and Increases Open Billing
Document Value.
c. Financial Accounting Document: It reduces Open billing Document Value and
Fiscal Year Variant: Assign Fiscal Year Variant K4.
Default Data for Automatically Creating New Customers: It any value maintained
in the below specifies 3 fields then system automatically applies that data “Risk
CatExory, Credit Limit, Representative Group” to New Customers.
In IMG we are going to define Risk CatExory and Credit Representative group for
Customers. The Credit Limit that we specified here applies to all the New Customers
that are defined under risk credit control area. Ex: 100000/-


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Check All Company Codes: This indicator signifies that the posting of this credit
control area applies to all the company codes that means the credit limit that we
defined for new customers is a overall limits across all the company codes. Save it
and exit.
Assign Company Code to Credit Control area.
Path:
IMG
Assignment
Assign Company Code to Credit Control Area.
Choose our company code and assign our credit control area. Save it and exit.
Define Groups: Here Customers are group for Credit Management. It is only for
information purpose.
Path:
IMG
Accounts Receivable and Accounts Payables
Credit Management
Credit Control Account
Define Groups
Go to New Entries and Define Customer Credit Groups.
Ex: Z001 – Major Customers
Z002 – Medium Customers
Z003 – Small Customers and Assign to Credit Control Area. Save it and exit.
Define Risk CatExories: Here Customers are catExorized for Credit Management
and Assign to Credit Control Area.
Go to New Entries
Y1 – High Risk CatExory
Y2 – Medium Risk CatExory
Y3 – Low Risk CatExory
Save it and exit.
Define Credit Representative Groups: Here company personnel can be defined as
a Credit Representative Group and Assign to Credit Control Area. It can be used as
a selection criteria to generate Credit List.
Go to New Entries. Ex: CG1

399

Cr. Group

Define Credit Representatives: Here Company Personnel “Partner Type PE of
Partner Function KB or KM” defined as a Credit Representative with intExration of
HR Module.


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Ex: Choose existing Credit Representative group and copying and renaming with
our credit representative group and credit control area and save it.
Credit
Representative

Credit
Control

Partner
Function

CG1

399

Check Credit
Control

KB

Personnel
Number

Name

ID

1051

Mr. XXX

Emp 2

Go to change mode of Credit Control Area and Assign Risk CatExory (399) and
Credit Rep. Group (CG1) save it and exit.

1. Specify Subtotal as a “A” for Credit Price:
Path:
IMG
Basic Functions
Credit Management / Risk Management
Credit Management / Risk Management Settings
Enter Settings
Conditions : Procedure
Choose our Pricing Procedure and Assign Sub-total as a “A” to Credit Price
(A – KOMP / CMPRE)
2. Configuration Setting: Assign Partner Functions KB and KM to Sales Document
Header to exchange information as well as to take certain decisions. Partner
Functions KB – Credit Representative, KM – Credit Manager should be defined and
assigned. Credit Manager is a superior to Credit Representative.
Path:
IMG
Basic Functions
Enter Settings
Configuration : Partner
Choose Sales Document Header
Click on change Icon
Choose Standard Partner Determination Procedure “TA”
Click on Partner Functions in Procedure control button under dialog structure
Check Mandatory option fir KB and KM.
3. Output Types (KRML): To exchange the information between Credit Manager
and Credit Group output type KRML should be configured with transmission medium
7 – Simple Mail.


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Path:
IMG
Basic Functions
Enter Settings
Output Types
Choose output type KRML – Credit Processing
Click on Details Icon
Click on Display to Change Icon
And again choose output type KRML and Click on Details Icon.
General Data
Access Sequence : 0005 – Credit Control Area
Check Access to Conditions
Check Multiple Issuing
Default Values Tab
Dispatch Time: Send Immediately when saving the application.
Transaction Medium : Simple Mail (7)
Partner Function : KB – Credit Representative
Communication StratExy : Blank
Time Tab
Check Timing – 2
Check Timing – 3
Periodic Jobs not allowed.
Mail
Specify the Document Name : KREDITCHECK
Priority : 9
Click on Mail title and Texts control button
Choose Language – English
Double Click on Text and Type the Text and specify the Message. Save it.
Click on Processing Routines
Assign Program FORM Routine written by ABAPer by which output going to be
trigger.
Click on Partner Functions Control Button
Assign KB and KM to Transmission Medium Simple Mail.
Save it and exit.


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Maintain Condition Records (VV11)
(Credit Control Area / Credit Representative Group / Risk CatExory)
Specify Credit Control Area
Specify Credit Representative Group (399)
Specify Risk CatExory (Y1)
Assign Partner Function (KB)
Transmission Medium – 7
Dispatch Time – 4
Language – English
Click on Communication
Specify the Note
{If you want to attach the file Click on Attach button}
Recipient
Specify the recipient Address
Specify the recipient Type
Check Send Express
The Message will be sent to the recipient as express message and a dialog box will
appear with the user and info.
Check Copy: This indicator sends message to the recipient as a copy. User can
view the document, he can not change it.
Check Blind Copy: The user receives the message without having any choice to
modify it. Save it and exit.
Determine Active Receivables per Item CatExory: Choose Item CatExory TAN
and check Credit Active.
Receivables Risk Management: Here Receivables Risk Management component is
going to be configured so that Risk can be minimized.
a. Define Forms of Payment Guarantee: Forms of payment guarantee defined.
Ex: Payment Guarantee 02.
Payment Guarantee 3 – Payment Card
Financial Document CatExory – NIL
Financial Document Processing 01 – Letters of Credit
04 – Guarantee Defined and save it,
Exit.
Define and Assign Payment Guarantee Schemas:
a. Define Payment Guarantee Schema: Here Payment Guarantee Procedures
000001 – Letters of Credit
000002 – Payment Cards Define and relevant Forms of Payment Guarantee
Ex: 02 – Payment Cards Assign to Payment Guarantee Procedure - 000002 by
going to Forms pf Payment Guarantee button under dialog structure. Save it and go
back.

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b. Define Customer Determination Schema: Here Customer
Ex: 0001 – Letters of Credit
0002 – Payment Cards Defines.
These values reflected in Customer Master Sales Area Data Section Billing Tab.
c. Define Document Determination Schema: Here Document Payment Guarantee
Schema Ex: 01 – Standard defined. It will be reflected in Sales Document Header
Level.
Assign Document Scheme to Order Types: Choose Sales Document Type “OR”
and Assign Document Payment guarantee procedure 01 and save it.
Define Payment Guarantee Scheme Determination; Here Customer Payment
Guarantee Schema and Document Payment Procedure Scheme Assign to Payment
Guarantee Scheme or Procedure.
Ex: Customer Payment Guarantee Procedure – 0002
Document Payment Guarantee Procedure – 01 = Payment Guarantee
Procedure – 000002 (Payment Cards) save it and exit.

Define Credit Groups: As automatic Credit Checks determine Credit Control Area +
Risk CatExory + Document Credit Group, Sales Documents, Delivery Documents
and PGI Documents should be group. That means Automatic Credit Check can be
carried out on Sales Order Level or Delivery Level or PGI (Post Goods Issue) Level.
Ex: 01 – Credit Group for Sales Order
02 – Credit Group for Delivery
03 – Credit Group for Goods Issue.
Save it and exit.
Assign Sales Documents and Delivery Documents:
a. Credit Limit Check for Order Types: Choose Sales Document Type “OR” and
Assign check Credit Limit as a “D” and Credit Group for Sales Order (01) and save
it.
b. Credit Limit Check for Delivery Types: Choose Delivery Document Type “LF”
and Assign Delivery Credit Group (02) and Goods Issue Credit Group (03) save it
and exit.


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Simple Credit Check
SAP carries out Simple Credit Limit Check based on configuration settings
that we set at VOV8 of “OR” in Check Credit Limit field as a A, B, C. Assign “B”
(Remove Credit Group 01 for Simple Credit Check).
Create Customer Credit Master:
Path: Logistics
Credit Management
Master Data
FD 32 – Create
Specify the Customer Number
Specify the Credit Control Area
Check Overview
Check Address
Check Central Data
Check Status
Check Payment History and press enter
Over View: In Overview Screen system gives overview of Customer Credit Limit,
Credit Exposure, Credit Limit used and Horizon can be specified. (If Horizon
specified then system takes Outstanding Sales Values that falls with in the Define
Credit Horizon to calculate Credit Limit), Payment History, Dunning Data etc.,
Address: System copies Address Screen from Customer Master.
Central Data: Specify total amount that is going to be permitted as a Credit Limit for
Customer under all Credit Control Areas.
Specify Individual Credit Limit that is going to be permitted for customer with in single
Credit Control Area.
Assign Currency of the Customer: INR
Status Screen: In this screen we can specify Customers Credit Limit that represents
an upper limit for the total receivables and foreseeable receivables from the
Customers. The total receivables results from open items plus special selected GL
transactions.
Open Items: Invoices – Credit Memos + Payments.
Special GL Transactions: Ex: Down Payments.
(The total Receivable Results from the Values of Orders that already accepted)
Risk CatExory, Credit Representative Group, Customer Credit Group.
Check Blocked: If it is Check then the Customer is blocked for all types of
transactions but we can force the Invoices for which deliveries already done.
Payment History: System Records Customer Payers Payment details if at Customer
Master Company Code Data section check payment history records activated. Save
it.

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Go to XD01 or XD02
Go to Sales Area Data Section Billing Tab and Assign Credit Control Area and save
it.
Go to VA01 and raise the Sales Order and check system response for Simple Credit
Check.
Go to VN01N and initiate Outbound Delivery, then system blocks the document due
to Credit Check. Then concern person in the Business removes the block by going
to VKM3 or VKM4 or VKM5.


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Define Automatic Credit Control (OVA8)
Path:
IMG
Basic Functions
Credit Management
Define Automatic Credit Control
Automatic Credit Control is going to be determine based on 3 factors that are:
a. Credit Control Area
b. Risk CatExory
c. Credit Group for Sales Order.
Go to New Entries and specify Credit Control Area + Risk CatExory + Credit
Group of the Document.
Document Controlling:
No Credit Check: With the help of ABAPers routines can be written to control
document with respective Credit Checks. Ex: It system should not carry out
Automatic Credit Check if Document doesn’t contain any items.
Check Item Check: This control determines when Automatic Credit Check should be
carried out while processing Sales Document i.e. from specifying Ship to Party No or
from specifying Material No or while saving the Document.
Released Documents are still unchecked deviation in %: Specify the percentage
rate as a deviation factor for documents that already have been approved for credit.
Ex: Sales Order has been raised for 10 Boxes for a value of Rs.1000 and it was
approved for credit. After raising Sales Order to the Customer wants to add more
items then the total value of additional items exceeds the deviation percentage then
system carries out Credit check. Ex: 10.
No of Days: Specify the No of days after which the changed documents must be
recheck the Credit.
This function can be used for checking documents that have already been released
by Credit Representative, but that have subsequently change.
System doesn’t carryout Credit Check if the following factors are matched. That are
a. The Value of the changed order is not greater than the value added approved for
Credit. (Inclusive of deviation factor).
b. The Current Date is not greater than the original release date + the no of days
specified here.


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Credit Limit Seasonal Factor:
%
Minus Check
From

To

Credit Limits can be granted based on the season.
Specify the % tolerance limit up to which Customer Credit Limit may be temporarily
extended or deducted. Ex: If you specify 5% and check minus option then Customer
Credit Limit is going to be extendedly 500/- for 10000/- Credit Limit.
From

To: Specify the time periods for bExinning of the seasonal factors.

Checks in financial Accounting / Old Accounts Receivables Summary:
Check Payer: It controls to carry out checks against current payer only. If it is
relevant for open items, oldest open items and highest dunning level types of credit
checks. It is only applied if the current payer copies from Partner Determination
Procedure.
Permitted Days and Permitted Hours: Specify the time limits (Ageing Period) to
carry out Credit Check against Current Payer for “Oldest Open Item Credit Check”.
Checks
1

2
3
4
5

Static
Dynamic
Doc Value
Critical fields

Next Review
Date

Reaction
Reaction
Reaction
Reaction
Reaction

Status/Block
Status/Block
Status/Block
Status/Block
Status/Block

Open Order
Horizon Period
Max Doc Value

Open Delivery
Month

No of Days

6

Open Items

Reaction

Status/Block Max Open Item in %

7

Oldest
Open Items
Highest
Dunning
Level
User 1
User 2
User 3

Reaction

Status/Block Days

Reaction

Status/Block Highest Dunning
Level

8

9

No of Days
Open
Oldest Open
Item

(By using User Exists LVKMPTZZ and LVKMPFZ1)
Static: System carries out Credit Check by getting Credit Exposure by comparing
total value of Open Sales Documents, Open Delivery Documents, Open Billing
Documents and Open Items.
If Credit Limit exceeded than according to the value that we set at reaction field that
is No Message, Warning, Error Message etc is going to be responded.


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If system has to take all Open Orders, all Deliveries into consideration then Check
Open Orders and Open Deliveries option.
If Credit Limit exceeded, you want to block it then Check Status / Block Indicator.
Dynamic: It indicates system carries out Dynamic Credit Limit check with in specify
Credit Horizon. System gets the Credit Exposure by splitting static part (Open Items,
Open Billing and Open Delivery Values) and dynamic part i.e. Open Order Value.
The Open Order includes all or not yet partially delivered orders. The value is
calculated based on shipping date and the Credit Horizon (Ex: 2 Months) that we
specified in the Horizon field so that when evaluating the Credit, system ignores all
open orders that are due for delivery after that horizon date.
The sum of the Static and Dynamic parts may not exceed the Credit Limit.
Document Value: It indicated that system carries out Credit Check based on
Maximum Document Value that we specified in Max Doc Value field. This kind of
Credit Check is relevant for New Customers whose Credit Limit not defined.
Critical Fields: Critical Fields like Payment Terms changed then system carries out
Credit Check along with Additional value days and fixed value days.
Note: This Check is only valid for Sales Documents only.
Next Review Date: It indicates whether system has to carry out Credit Check based
on the date of next review date for Credit.
While processing the Document the next Credit Review date should not be on the
current date which we maintain (FD32 – Customer Credit Master
Status
Section Internal Data
Next Review Date)
We define time buffer for this kind of Credit Check in the adjacent field and also we
can maintain no of days that are added to next credit review date.
Check Open Items: Specifies whether the system carries out Credit Check based on
Open Items.
Based on the below specifies factors, system carries out Credit Check on Open
Items.
a. Maximum % of overdue items in open items.
b. No of days which the open items are overdue.
The proportion of overdue open items (That exceeds the specified no of days in the
total of open items should not exceeds the % specified)
Oldest Open Item: It indicates whether the system carries out Credit Check based
on the age of the oldest open item.
The oldest open item must not be older than the no of days specified.
Highest Dunning Level: It indicates whether system has to carryout Credit Check
based on the highest dunning level which we maintain in Customer Master Company

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Code data section in Correspondence Tab Dunning Procedure and Dunning Level
which will be copied to (FD32 – Customer Credit Master Overview Section Dunning
Data)
When Dunning Procedure reached to the highest level than system carries out
Automatic Credit Check.
Check Static, save it and exit.
Go to VOV8 of “OR” and Assign Value “D” in Check Credit Limit field and Assign
Credit Group as a “01”, save it and exit.
Go to VA01 and raise the Sales Order and check Automatic Credit Check effect.
Go to VL01N then system blocks the Document.
Go to VKM3 and release the Document.
FAQ: If Credit Management to be configured for Division Specific? How do you
configure it?
ANS: Assign Credit Control Area to Sales Area. Sales Area is a combination of Sales
Organization, Distribution Channel and Division.
Path:
IMG
Assignment
Assign Sales Area to Credit Control Area
Choose our Sales Area and Assign our Credit Control Area.


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TRANSFER OF REQUIREMENT AND AVAILABILITY CHECK
To confirm the Quantities for a line item in the Sales Order, system tries
to understand what kind of Material Type it is?. Depending upon the Material type
(FERTS), system proposes General Item CatExory Group (NORM), together with
other 3 factors (TA, NIL, NIL) system determines item catExory for a line item in the
Sales Order, together with MRP type (PD or NIL) system determines Schedule Line
CatExory (CP) if Schedule Line CatExory CP then SAP can understand that it has to
perform transfer of requirements (TOR) Availability Check function based on the
“Requirement Type” (041) which points “Requirement Class” (041) where we
specify that TOR and Availability Check functions should be carried out globally.
By default these values proposed in Schedule Line CatExories where Requirement
Type (041) determined.
By following a search stratExy system determines requirement type.
Requirement Type signifies what kind of requirements (Sales Order Requirements or
Delivery Requirements).
Once the requirements are transferred to MRP then system carries out “Availability
Check Functions”. While carries out available check functions system determines
ATP Qty following a formula.
ATP Qty = Warehouse Stock + Planned Receipts + Planned Issues.
Availability Check is going to be controlled by taking 2 factors into consideration.
That are
a. Checking Group
+
b. Checking Rule
Checking Group determines what king of requirements it has to generate. Ex:
Individual Requirement or Summarized Requirements.
Checking Rule specifies Scope of the Availability Check that means what kind of
MRP elements ( PR – Purchase Requisition, PO – Purchase Order, Planned Orders,
Production Orders, Stock in Transfer, Stock at Inspection, Stock in Transit, Reserves,
Safety Stocks, Sales Orders, Deliveries and also RLT (Replenishment) type has to
taken into consideration.
If system calculated positive ATP Qty then system confirm the Qty on Requirement
Delivery Date by following “Backward Scheduling” or otherwise “Forward
Scheduling”. As a delivery schedule system takes material availability date, Loading
date, Goods Issue date and Transportation Planning date into consideration.
If system finds NExative QTP Qty then SAP gives 3 options to the user as a “Result
of Availability Check”.
a. Online Delivery
b. Complete Delivery
c. Delivery Proposal.

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Configuration Settings for TOR:
1. Define Requirement Class: Requirement class specifies whether TOR and
Availability check carried out transactions whether requirements are relevant for MRP
etc.,
Path:
IMG
Basic Functions
Availability Check and Transfer of Requirements
Transfer of Requirements
A. Define Requirement Class: Select 041 – Order / Delivery Requirement.
Go to Details icon
Check Availability
Check Transfer of Requirement.
These Requirements are copies to Schedule Line CatExories by default. Where we
can have fine tuning of Schedule Line CatExories with respective TOR and
Availability functions. That means depending up on the transaction type. This TOR
and Availability Check functions can be de-activated at Schedule Line CatExory level
then system doesn’t carryout TOR and Availability Check functions for that particular
transactions. Ex: For Sales Activities.
Note: If TOR and Availability functions de-activated at Schedule Line CatExory level
and they doesn’t effect requirement class as they are copies from requirement class
only.
B. Define Requirements Type: Requirement Type identifies different types of
requirements. Ex: Sales Order Requirements or Delivery Requirements or Individual
Customer Requirement.
Together with Item CatExory + MRP Type, Requirement Type can be determine for
individual transaction in Sales and Distribution.
Requirement Type is Assign to Requirement Class.
Requirement Type is allocated to single requirement class but requirement class can
be assigned to several requirement types. Ex: 041 – Requirement Class. Save it
and exit.
C. Determination of Requirement Types using Transaction: To determine
Requirement Type system follows a search stratExy that is
1. First system checks “StratExy Group” in the Material Master from MRP3 view or
else
2. It will go to MRP group from MRP1 view to find out requirement types or else
3. System tries to determine requirement type by using Material type or else
4. It will go to Item CatExory + MRP Type (This is S & D Assignment) or else
5. System tries to determine requirement type by using item catExory only or else
6. System assumes that the transaction is not relevant for TOR and Availability
Check.


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Item CatExory

+

TAN
TAN
TAN

MRP Type

+
+
+

PD
NIL
ND

=

Requirement Type.

= 041
= 041
= 011 – Delivery Requirement

Path: Go to VA01 Overview Screen, Procurement Tab Requirement Type 041.
D. Define Procedure for Each Schedule Line CatExory: In this step we can
determine for respective schedule line catExories of Sales Document whether
Availability Check and TOR should be carries out or not.
It is only relevant for Sales Document.
It is called find tuning of Availability Check for Sales Documents. That means TOR
and Availability Check functions controls can be activated at required class level and
they can be de-activated at Schedule Line CatExories Level if they are de-activated
at requirement class level as they are copied from requirement class level.
Ex: For Sales Activities if the user wants to carry out Availability Check without TOR
at Schedule Line CatExory Level TOD should be de-activated and Availability Check
should be activated.
E. Block Qty Confirmation in Delivery Blocks: Due to Credit Checks if Sales
Document is blocked for delivery and while defining schedule line catExories if TOR
and Availability Check functions are activated then system carries out TOR function
and transfer the requirements and reserve the stock. If Sales Document blocked for
credit check the reserved stock is going to be block till the Credit Manager takes the
decision unless and until the block is removed the blocked stock can not be used by
anywhere so that transfer of requirement should be block. In this step we configure
the system that system transfers the requirement but stock is not going to be reserve.
It can be viewed when save the Sales Order as a confirmed Qty as a Zero.
Once block is removed then system immediately carries out Availability Check and
system confirms Qty.
Activity:
a. Deliveries: Blocking Reason / Criteria
Ex: 01 – Credit Limits
Check Confirmation
Check Picking
Check Goods Issue
b. Reason for and Scope of Delivery Blocks: TOR Block:
Ex: 01 – Credit Limits
Check Confirmation Block


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F. Maintain Requirements of TOR: With the help of ABAPers Customers
Requirements can be written (VOFM) for Transfer of Requirements. Ex: 102 that
prevents reservations the event of Credit Blocks.
G. Maintain Requirements for Purchase and Assembly Orders: Here with the
help of ABAPers requirements can be written. Ex: System should not create
purchase requisition or Assembly Order if Credit Limit exceeded.
Ex: Requirement Number 102 - Purchase Requisition
105 – Assembly.
Configuration setting for Availability Check with ATP Logic or against planning.
a. Define Checking Groups: Checking Groups specifies what kind of requirements
system has to generate when the material placed in Sales Order or Delivery. That
are individual requirements or summarized requirements.
Path:
IMG
Basic Functions
Availability Check and Transfer of Requirements
Availability Check with ATP Logic or Against Planning
Define Checking Groups : Here checking Groups 02 – Individual Requirements with
total records for Sales Order as a A – Single Order.
Total records for deliveries as a A – Single Orders with blocking Qty requirement.
This control blocks the Material which is only in place during AVT Check. It can be
set if multiple users wants to access the material table simultaneously so that the
user can have clear view about the Availability of the material.
b. Define Material Block for other user: This indicator allows the users to process
in different Sales Orders at a time, then without blocking the Qty for one Sales Order
checking group can be set so that system carries out Availability Check for one
Material after another Material.
c. Define Checking Groups Default Value: Depending upon the Material type
system by default proposes “Checking Group” in the Material Master by default.
So that depending upon the Material Type system proposes and creates
requirements.
Go to New Entries
Specify Material Type FERT, Plant and Checking Group of Availability Check as a 02
– Individual Requirements. Save it and Exit.
d. Carry out Control for Availability Check: Availability Check is going to be
controlled by Checking Group + Checking Rule. Here checking group (02) assign to
Checking Rule (01) select the combination and go to details icon.
e. Define Procedure by Requirements Class: Requirement Class 041 checked
with Availability Check and Transfer of Requirements.
Note: These settings copies from TOR only.

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f. Define Procedure for Each Schedule Line CatExory: Here find tuning settings
for Availability Check at Schedule Line CatExory level can be configured.
Ex: CP – Check Availability Check and Transfer of Requirements.
Note: This configuration settings are copies from TOR configuration settings.
g. Define Procedure for Each Delivery Item CatExory: Here Availability Check
control define delivery Item CatExory whether system has to carry out Availability
Check or not for Delivery Item.
Choose Item CatExory TAN and Assign Blank, X or Y.
h. Checking Rule for Updating Back Orders: When the Document saved with
order Qty ZERO then system treats the Order as a back order. Then the back order
can be completed by using concept called Re-scheduling. To update the back orders
we define Checking Rule at Plant Level. Ex: Choose our Plant and Assign Checking
Rule (01) save it and exit.
i. Define Default Settings: While Carry out Availability Check system determines
ATP Qty by following a formula:
ATP Qty = Warehouse Stock + Planned Receipts – Planned Issues
If ATP Qty is positive then system confirms the Qty according to required delivery
date.
If ATP Qty is NExative the SAP gives 3 options (in a dialog box) to the user to take
decision. That are:
1. One Time Delivery: In One Time Delivery of Order Qty is 100 Units, Required
Delivery Date is Current Date then system confirms Qty after 1 week. If the user
uses one time delivery then system confirms Qty as a ZERO then it can be
completed by using Back Order Processing.
2. Complete Delivery: If the user chooses this option that is 50 items today,
remaining 50 items after 1 week then system confirms full Qty after 1 week. So that
Order can be delivered after 1 week.
3. Delivery Proposal: The user chooses this option then 50 confirmed and delivered
today and remaining 50 can be delivered after 1 week

Choose Sales Area
Check Fixed Date and Qty and Assign Rule for Transferring the Result of the
Availability Check. Ex: E – Dialog Box in the case of Shortages (Delivery Proposal)
save it and exit.
Note: Create one Material and raise the Sales Order without initiating the stock
and check the effect.
Check Fixed Date and Qty: This indicator signifies that the Customer concerned to
accept system confirmed order qty date.


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COPY CONTROL
Ex:

"QT"

COPY CONTROL
|
|

"OR"

HEADER

HEADER

HEADER

ITEM

ITEM

ITEM

SCHEDULE LINE

SCHEDULE LINE

SCHEDULE LINE

Copy control is a concept by which SAP copies data from Source Document to
Target Document by using Data Transfer routines at each level of Document. While
copying “Requirements can be Specified” so that system takes those
requirements into consideration while copying data.
Transaction code VOFM to get the data transfer routines.
Documents can be copied:
a. Sales Document To Sales Document
b. Sales Document To Delivery Document
c. Sales Document To Billing Document
d. Delivery Document To Billing Document
e. Billing Document To Billing Document
f. Billing Document To Sales Document
Sales Document To Sales Document:
Path:
IMG
Sales
Maintain Copy Control for Sales Documents
Copying Control Sales Document to Sales Document
Header: Choose “OR to QT”
Click on Display to Change
Again Choose OR to QT
Go to Details Icon
Data Transfer Routines: 051 – General Header Data. This routine transfers
General Header Information from Header to Header copies. It is Assigned to VBAK

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Table. This routine also ensure certain data should not be copies. Ex: Purchase
Order.
Data Transfer Routines: 101 – Business Data Header. This routine transfers
Business Data from Header to Header. Ex: Payment Terms, INCO Terms etc.,
Data Transfer Routines: 001 – Partner Header. This routine transfers relevant
Partner Functions from Header to Header, Irrelevant Partners removed and required
Partners fulfilled.
Copying Requirements: 001 – Header – Same Customer. This requirement
ensures whether same sold to party is going to be copies or not into target document.
Otherwise system throws error. Ex: One Quotation raised for Customer “A”, if Sales
Order is going to be raised with reference to same Quotation for Customer “B” then
system throws error.
Check Copy Item Number: This Indicator copies Sales Order Line Item number
from preceding document to target document.
Check Complete Reference: This Indicator issues a message if source document
Qty has not been fully referenced.
Item: Choose Item catExory AGN go to details icon
a. Proposed Item CatExory: Specify Item CatExory the system automatically
proposes and it overwrites VOV4. Ex: In Billing Cost determination should not take
place for Credit Memos for Third Party Orders (G2S). So that system should use
item catExory TASG as a default since it doesn’t determine cost instead of proposing
item catExory TAS.
Data Transfer Routine: 151 – General Data Item. This routine transfers General
Data from Item Level.
Data Transfer Routine: 102 – Business Data / Item Completion. This routine
transfers Business Data at Item Level. Ex: Payment Terms and INCO Terms etc.,
Data Transfer Routine: 002 – Partner Item. This routine transfers relevant Partner
Functions from source document to target document at item level. It copies relevant
Partner Functions and its removes irrelevant partner functions and fulfill required
partner functions.
Copying Requirements: 301 – Item rejection reasons. This requirement doesn’t
copy the rejected items from source to target documents.
Check Copy Schedule Lines: This indicator copies or created schedule lines in
target document. Ex: When contract document released by the releasing order
“OR” then system has to create schedule lines in “OR” even though contract
document doesn’t contain schedule lines.
Update Document Flow: Ex: X – Create Document Flow Records.
Blank – Do not Create Document Flow Records
2 – Create Document Flow Records except for delay / Goods Issue / Billing
Document

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The Value of this field created Document Flow Records.
FAQ: Can we Create Document Flow Records only for Inquiry, Quotation and Sales
Order?
ANS: Yes. It is relevant for Contract Business Cinereous. We have to Assign Value
as a 2.
Check Don’t Copy Batch: This indicator determines whether system has to copy
Batch from Preceding Document to Target Document.
Configuration: The value of this field determines whether system has to fix
configuration from Preceding Document to Target Document or it has to re-determine
in the New Document. It is relevant for Configurable Materials only.
Check Re-explode Structure / Free Goods: This indicator determines whether
BOM as well as Free Goods should be re-determined or they should be copies into
Target Document.
Positive / NExative Qty: Ex: + - Positive. The Value of this field determines effect
on source document after copying into target document. Ex: If Quotation created for
100 Items and Sales Order is going to be raised for 80 Items then Quotation will have
a Positive effect or if Sales Order raised for 120 Items then Quotation will have a
NExative effect.
Quotation
Sales Order - Positive
Contract
Return - NExative
Sales Order
Sales Order - No Effect
If it is Billing Document
Delivery
Delivery
Delivery

Invoice - Positive
Cancellation - NExative
Proforma Invoice - No Effect.

Copy Qty: Blank – Automatic Qty Determination
A – Copy Order Qty
B – Copy Target Qty
Select Blank. The value of this field determines which Qty should be copies from
Source Document to Target Document. If it is Quotation to Sales Order system
automatically determines copying Qty. If it is Invoice to Sales Document then system
copies Target Qty.
Pricing Type: Ex: A – Copy Price components and re-determine Scales.
B – Carry out New Pricing
C – Copy Manual Pricing Elements and re-determine the others.
D – Copy Pricing Elements Unchanged
The value of this field determines how the Pricing to be carried out while copying the
source document to target document.


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Ex: If Inquiry made for 100 Items
Quotation raised for 100 Items
Sales Order raised for 100 Items
PGI (Post Goods Issue) has been done for 75 Items, then billing should be carried
out in Invoice by copying same Price Components with determining the scale rates,
then Ex:Pricing Type should be “A”.
If during Sales Order Processing or Billing Document Processing if the user has to
carry new pricing completely then user has to specify Pricing Type as a “B” in the
item condition screen of Sales Document or Billing Document.
FAQ: Can we carry out New Pricing during Sales Document Processing?
ANS: YES. By using option update in Item Condition Screen.
Copy Mode for Material in Value Contract Item: The value of this field determines
whether Value Contract Item is to be copies or not from Value Contract to Release
Document.
Copy Result of Product Selection: Ex: A. The value of this field determines
whether system has to copy product selection from Preceding Document to Target
Document or it has to carry out New selection.
Schedule Lines: Choose schedule line catExory “BP” and go to details icon
Data Transfer Routine: 201 – General Schedule Data. This routine transfers
General Data in Schedule Line catExories from Source Document to Target
Document and also it makes sure that certain data should not be copies and they are
re-determine in the Target Document. Ex: Actual Schedule Line Number and
Availability Dates according to the Availability of Material.
Copying Requirements: 501 – Schedule Qty > 0. This requirement make sure that
Schedule Lines goods Qty > 0 only can be copies from Source Document to Target
Document.


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CONTRACTS
In Business Customers enter for worth of Material, for Qty of
or for Rental Contracts. Contract is a LExal binding of both parties to perform certain
activities for a sake of “Monitory Considerations”. Contracts can be mapped in SAP
system by defining Documents.
Ex:

Qty Contract
(KM)
Value Contract (WK1 and WK2)
Service Contract (WV)
Rental Contract (MV)
Master Contract (GK)

Master Contract is nothing but a Header Contract to which all Contracts can be
Assigned as a Lower Level Contracts, if the Customer enters for all Contracts with
the Business. Due to this Master Contracts data consistency can be maintained.
Master Contracts are executed thru “Work Flow”.
Contracts doesn’t have any Schedule Lines.
In Business one person should be authorized to enter and “To Release” the
Contracts. Usually Sold to Party or Ship to Party may be authorized to release
Contract. Partner Function “AA” – Sold to Party authorized to release the contract
should be define and assign to Partner Determination Procedure for Customer
Master object or Sales Document object.
Release Order: Contracts are released by using Release Order i.e. Sales Order.
Ex: TA. For Contracts Business may follow different Pricing Procedures.
Qty Contract (KM): When the Customer wants certain Qty of the Material during
certain period or when the Business lacks sufficient production to meet the demand
Qty contracts can be entered. To distribute available Qty evenly among Customers.
VOV8 of KM
Sales Document Type NMS
SD Document CatExory – G
Screen Sequence Group – LP – Out Line Agreement
Transaction Group – 4 – Contract
Doc Pricing Procedure – A
Message : Master Contract A – Check
No Delivery and No Billing
VOV7 of KMN
Completion Rule – C
Pricing - X
Uncheck Schedule Lines Allowed


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Copy Control (VDAA)
KM – TA: Item level Pricing Type – G – Copy Pricing elements unchanged and redetermine taxes.
Process Flow:
VA41
KM
Qty Contract

VA01

VL01N

TA

LF

Standard Order

Delivery

VF01
F2
Invoice

Path: Logistics
Sales
Contract
VA41 – Create
Specify the Contract Type KM and Sales Area
Specify Validity Period
Save the Document and go to VA01 to release the Contract
Go to VL01N and VF01.


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Value Contract (WK1)
When the Customer wants worth of certain materials during certain period value
contracts can be entered. Value contracts follows different document pricing
procedure.
Assortment Module: Is a Tool where we can maintain the Materials that are going
to be participated in the Value Contract from which Value Contract Items can be
copied into Value Contract Document.
It works as a Order Entry Tool.
VOV8 of WK1
Doc CatExory Screen Sequence Group – WK
Transaction Group – 4
Doc Pricing Procedure – Y
VOV7 of WKN
Completion Rule – E
Pricing - X
Uncheck Schedule Line Allow.
Check Ord Qty – 1
Value Contract Material (Any Material)
Contract Release Control – A
Go to OVKK and Assign Standard Pricing Procedure WK0001, Condition Type
WK00 with Document Pricing Procedure as a “Y”.
Go to V/06 and Choose WK00
Plus / Minus – Blank
Process Flow
WSV2

VA41

VA01

VL01N

VF01

WK1

OR

LF

F2

Create Assortment Module


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Path: Logistics
Master Data
Products
Value Contract
Assortment Module
WSV2 – Create
Click on Items
Specify Description
List out all the Materials that are going to be participated in the Value Contract with
validity periods. Save it and note down the Assortment Module Number.
Go to VA41
Specify Doc Type WK1
Specify the Description
Specify the Validity Periods and Specify the Assortment Module Number with Target
Value in the Line Item and save the Document.
Go to VA01 and release the Value Contract.
Specify the Open Qty
Select Line Item
Click on Expand Assortment Module Option.
Specify the Order Qty, Press Enter and go back, again select line item and click on
copy system copy 2 line items and process the Sales Document then VL01N and
VF01.


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Service Contract (WV)
When the Business providing service for the sake of Monitory
consideration Service Contract can be entered. For Service Contract separate
Pricing Procedure can be used. Ex: PSER01 – Std Pricing Procedure for Service
Contract. That contains condition type PPSV.
Create Material Master by specifies base unit of measure “Day or Month”.
Material Type is “Service”.
General Item CatExory Group – LEIS
Go to OMS2
Choose DIEN
Click on Qty / Value updating.
Go to OVKK and Assign Pricing Procedure PSER01 with Document Pricing
Procedure “V”, Condition Type PPSV save it and Exit.
Go to V/06 of PPSV
Access Sequence – PPSV
Calculation Type – N (Qty – Monthly Price)
Scale Basis – N (Time Period Scale Monthly)
Scale Type – B (To Scale)
Unit of Measure – 1
Go to VK11 and maintain condition records for PPSV and save it.
VOV8 of WV
SD Doc CatExory – G
Screen Sequence Group – VT
Doc Type Pricing Procedure – V
Order Related Billing Type – F2
Pricing Procedure Condition Header – PABR01
Pricing Procedure Condition Item – PABR02
Contract Profile – 0001 – One Year Contract
(Path to Define Contract Profile:
IMG
Sales
Sales Documents
Contracts
Contract Data
Control Cancellation
Define Cancellation Reasons (Ex: 01 – Too Expansive)
Define Cancellation Procedures:
Ex: 0001 – Cancellation to Valid Period Ending Yearly withdrawal Right. Save it and
Exit


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Define Cancellation Rules: Here Cancellation Rules can be defined.
Ex: 0002 – Cancellation to Valid Period and End, Yearly Withdrawal Right.
Cancellation Date : 08 – Contract Start Date + Contract Validity Period
Notice – 3
Cancellation Unit : 3 – Month
Cancellation Period : 1
Period Unit – 4 (Year)
Rule Valid to – Blank
Assign cancellation rules and cancellation procedures. Here Cancellation
procedures are defined and relevant cancellation rules are assigned.
Ex: Cancellation Procedure 0001 Assigned to Cancellation Rule 0002.
Define Cancellation Rules: Here cancellation rules can be defines. Ex: 0002 –
Cancellation to Valid Period and End, Yearly withdrawal right.
Cancellation Date 08 – Contract Start Date + Contract Validity Period.
Notice – 3
Cancellation Unit – 3 Months
Cancellation Period – 1
Period Unit – 4 (Year)
Rule Valid to – Blank
Assign Cancellation Rules and Cancellation Rules: Here Cancellation
Procedures are defined and relevant cancellation Rules are Assigned.
Ex: Cancellation Procedure 0001 Assigned to Cancellation Rule 0002.
Define Contract Profile: Here Contract Profile Ex:0002 – Contract with Renewal
defined where contract start rule Ex:04 – Acceptance Date Contract End Rule,
08 – Contract Start Date + Contract Validity
Validity Period CatExory – 01 (6 Months)
Cancellation Procedure – 0001 (Cancellation to Valid Period End, Yearly withdrawal
right.
Action: 0003 – Create Quotation. System or User creates Quotation as a follow up
action.
Action Date Rule: 19 – End of the Contract – 1 Month.
Define Validity Period catExories
Validity
01
02

Valid Period Unit Valid Description
Period
6
3
6 Months
1
4
1 Year

Define Rules for Determining Dates: Here Date Determination Rules are defines.
Ex: 04 – Acceptance Date
Base Line Date - 04 Acceptance Date
Save it and Exit.)


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Billing Request: IRC (Debit Memo Request for Contract). Assign Billing Document
Type for Service Contracts that system automatically proposes for Business
Compensation for Service Contract.
Contract Data Allowed: Ex: X. The Value of this field determines whether Contract
data allowed for this Sales Document. If you Assign “X” the changes that we are
going to carried out at Header Level, doesn’t effect at Item Level. If you Assign “Y”
changes effect at Item Level.
Follow up Activity Type: 000 – Telephone Call. Assign follow up activity type that
is to be created as a follow up action for Service Contract.
VOV7 of WVN
Completion Rule “C”
Billing Relevance : I – Order Related Billing – Billing Plan.
Billing Plan Type : 02 – Periodic Billing.
Pricing : X
Uncheck Schedule Lines Allowed.
Save it and Exit.
Go to VA41 and Process Service Contract and go to VF01 and raise Invoice.


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MASTER CONTRACT
When the Customer enters with different types of contracts those contracts can be
assigned to Master Contracts as a Lower Level Contracts. So that date consistency
can be maintained.
Group Referencing Procedure (SDGK): To Assign Lower Level Contracts to
Master Contracts are referencing Procedure required by which what kind of fields can
be copied and what kind of fields proposed from Master Contracts to Lower Level
Contracts.
Path:
IMG
Sales
Sales Documents
Contracts
Master Contracts
Define Referencing Requirement
a. Define Reference Sales Document Types: Here Lower Level Contracts are
assigned to Master Contracts.
b. Define Referencing Procedures: Has fields are catExorized into 3 parts
1. Identical Fields: A Master Contract can only be referenced by a contract if the
fields in the Master Contract and Lower Level Contracts Matches.

2. Copy Fields: The Values of these fields are copied from Master Contract into
Lower Level Contract. Deviating values in the Lower Level Contracts are not
allowed.
3. Proposal Fields: Like copying fields are
but values
can be over written.
Choose Standard Referencing Procedure SDGK and copy it and rename it (ZSDK).
Select our Procedure
Click on Fields Control Button under dialog structure
Go to new entries and maintain entries in the table like below
Table
VBAK
VBKD
VBAP
VEDA

Field
Name
AUGRU
INC01
KUNNR
VLAUFZ

Copying Rule:

Partner
Function

SP

Copy
Rule

Message

C
B
A
A

A – Check for Agreement
B – Always Copy
C – Copy only of Agrees

Save it and Exit.

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VOV8 of GK
SD Document CatExory – 0
Screen Sequence Group – GK (Master Contract)
Document Pricing Procedure – V
Contract Profile – 001
Group Referencing Procedure – ZSDK
Contract Data Allowed – X
Check Update Lowe Level Contract
Save it.
Go to VA41
Specify Document Type “GK”
Specify Sold to Party No
Specify Contract Start Date – 01 (Today’s Date)
Specify Contract End Date – 10 (Today’s Date + 1 Year)
Save it and note down the Master Contract Number.
Again go to VA41 and raise Quantity Contract
Specify the Contract Start Date and End Date (Like Master Contract Validity Periods)
and Assign Master Contract Number that was created in the previous step)
Sate it and Exit.
Go to VA41 of Master Contract and check Qty Contract has been assigned or not.


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CUSTOMER COMPLAINTS
In Normal Business Process, Business or some times Customers may incur losses,
so that compensations should be takes place according to the Partner.
If Customer incurred loss Ex: Due to Damage in Transit Customer compensation to
be carried out by following 2 methods.
a. By sending Physical Materials proportionate to Damaged Goods OR
b. Raising Credit Memo with reference to Credit Memo Request.
If rehabilitation cost more than the Production cist then the Business may ask the
Customer to destroy the goods the according to Customer request business may
sent physical goods as a customer compensation or business may raise Credit
Memo.
If rehabilitation cost less than the actual cost then Business may ask the Customer to
return the Damaged goods and it has to receive those damaged goods into separate
storage location, then the Business has to test those damaged goods to find out the
reason for the damage and also if there is any choice to rectify those damaged goods
by the Quality Inspector. If there is any rectifiable goods existed then those goods
will be rectified and transferred to “Un-restricted Usage” of main storage location.
If un-restricted goods are existed then those goods are transferred to “Scrap”
storage location, from there scrap materials are removed from scrap storage location
by following Normal Standard Business Process.

If Customer doesn’t Return the Goods Credit Memo Request
Process Flow:
IN
QT
VA11
VA21

OR
VA01

LF
VL01N

F2
VF01

G2
VA01

G2
VF01

Copy Control is Billing Document, Sales Document.
VOV8 of G2 – Credit Memo Request
SD Doc CatExory : K
Screen Sequence Group : GA – Cr / Dr Memo
Transaction Group : 0 – Sales Order
Doc Pricing Procedure : A
Delivery Type – NIL
Order Related Billing Type G2
Billing Block : 08 – Check Credit Memo
VOV7 of G2N – Request
Billing Relevance : C – Relevant for Order Related Billing Status according to Target
Qty
Pricing : X
Uncheck Schedule Lines.
Check Returns

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Debit Memo Request: When the Business incurs Loss in Business Transaction due
to Price Discrepancy or Excess Delivery Debit Memo Request can be raised.
Process Flow:
IN
VA11

QT
VA21

OR
VA01

LF
VL01N

F2
VF01

L2
VA01

L2
VF01

VOV8 of L2 – Debit Memo Request
SD Doc CatExory : L
Screen Sequence Group : GA – Cr / Dr Memo
Delivery Type – NIL
Order Related Billing Type L2
Billing Block : 09 – Check Debit Memo
VOV7 of G2N – Request
Billing Relevance : C – Relevant for Order Related Billing Status according to Target
Qty
Pricing : X
Uncheck Schedule Lines.
Uncheck Returns
Flow:
Standard Order
Delivery
Invoice
Debit Memo Request
Debit Memo
RETURNS: When the Customer Return the Damaged Goods to Business, business
has to receive those Damaged Goods into separate storage location (SL2), from
there rectified goods transferred to main storage location. MB1B : 453 – SL1 unrectified goods transferred to scrap storage location (SL3).
Customer should be compensated, raising Credit Memo for Returns.
Configuration Settings: Maintain 3 storage locations SL1, SL2 and SL3. Create
Material Master under SL1 and extend the Material to SL2 and SL3.
Go to MM02 and give Material Number in Copy from field.
Go to MB1C and initialize the stock in SL1.


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Process Flow:

VA11

VA21

IN

QT

Scrap

VA01

VL01N

VF01

OR
LF
F2
|
RE
LR (SL2)
|
MB1B
453
SL1
|
MB1B
453
-----> VA11 -----> VA21 ----> VL01N ----> VF01
SL3
|
VF01 (RE) Credit for Request

VOV8 of RE – Returns
SD Doc CatExory : H
Screen Sequence Group : RE - Returns
Delivery Type – LR – Return delivery
Delivery Related Billing Type : RE – Credit for Request
Order Related Billing Type : RE – Credit for Request
VOV7 of REN – Request
Billing Relevance : B
Pricing : X
Check Schedule Lines Allowed.
Check Returns
Check Weight / Vol Relevant
Check Determine Cost.
VOV6 of DN – Returns
Movement Type : 651 – Return Delivery
Check Item Relevant for Delivery


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SUBSEQUENT FREE OF CHARGE DELIVERY (SDF)
While compensating the Customer if the Customer required Physical Materials as a
Customer compensation subsequent free of charge deliveries can be used.
Process Flow:
VA11

VA21

VA01

VL01N

VF01

IN

QT

OR
|

LF

F2

SDF

----------------->

LF

VOV8 of KL – Subsequent Delivery Free of Charge
Doc CatExory : I
Reference Mandatory : C
Screen Sequence Group : RE - Returns
Doc Pricing Procedure : C - Free
Delivery Type – LF – Delivery
Check Propose Delivery Date
VOV7 of KLN – Free of Charge Item
----- NIL ----Free of Charge Deliveries (Samples): When the Business grants Samples
Document Type “CD” can be used with a Doc Pricing Procedure “C”
Process Flow : CD

LF

Invoice Correction Request (RK): For Customer and Business compensations
instead of using two different documents i.e. G2 or L2 a single sale document can be
used i.e. RK. In Invoice correction request system creates 2 line items for every
single item in the Sales Order. One is Credit Item and another one is Debit Item.
Customer compensation or Business compensation can be carried out thru Debit
Item only.
VOV8 of RK – Invoice Correction Request
SD Doc CatExory : K
Indicator : D
Reference Mandatory : M – With Reference to Invoice
Screen Sequence Group : GA – Credit / Debit Memo
Order Related Billing Type : G2


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CONSIGNMENT
Consignment Business Process when the Business launches New Product then the
dealer may not take the Materials from the Business so that Business sent that new
stock to dealer “CONSIGNMENT AGENT” without carrying out Billing Process.
If consignment Agent sells the stock to the consumer, then only business bills the
customer “Consignment Agent”.
Consumer returns the goods to the Consignment Agent if they are damaged. So that
Business should compensate it by raising Credit Memo.
If Consignment Agent doesn’t want to sell consignment stock then the business has
to pick up unsold stock from customer side.
V V Imp: Consignment Agent can be defined in SAP system as a special stock
partner, with a partner function SB. Consignment Business Process consists of 4
phases
a. Consignment Fill up:
VA01
VL01N
KB
LF
b. Consignment Issue:
VA01
VL01N
KE
LF
c. Consignment Returns:
VA01
VL01N
KR
LR
d. Consignment Pick Up:
VA01
VL01N
KA
LR

VF01
F2
VF01
RE

Consignment Business Process:
Item

CatExory

KB / CF
KE / CI
KR / CR
KA / CP

KBN
KEN
KRN
KAN

Schedule
Line
CatExory
E1
C1
D0
F1

Movement
Type
631
633
634
632

VOV8 of KB
SD Doc CatExory : C – Consignment Fill Up
Delivery Type : LF
VOV7 of KBN
‘---- NIL ---VOV6 of E1
Movement Type : 631
Check TOR and Availability Check

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VOV8 of KE
SD Doc CatExory : C – Consignment Fill Up
Delivery Type : LF
Delivery Relevant Billing Type : F2
Order Relevant Billing Type : F2
VOV7 of KEN
Special Stock : W – Consignment Customer
Billing Relevance : A
Pricing : X
VOV6 of C1
Movement Type : 633
VOV8 of KR – Consignment Returns
SD Doc CatExory : H
Screen Sequence Group : RE
Delivery Type : LR
Order Relevant Billing Type : RE
Billing Block : 08
Check Propose Delivery Date
VOV7 of KRN – Consignment Returns
Special Stock : W – Consignment Customer
Billing Relevance : B
Pricing : X
VOV6 of D0
Movement Type : 634
VOV8 of KA – Consignment Pick Up
SD Doc CatExory : C
Delivery Type : LR
VOV7 of KAN
‘ --- NIL--VOV6 of F1
Movement Type : 632
Check TOR and Availability Check.


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INTER COMPANY / CROSS COMPANY SALES
Activity 1: End Customer of 2200/10/00 raised the Purchase Order to Purchase the
material and 2200/10/00 Sales Area raise the Sales Order to sell the Materials, Plant
2200 under Company Code 2200 confirm the Quantity as a “ZERO”.
Activity 2: Sales Order as to supply the Materials to the end Customer 2200/10/00
Sales Area raised Purchase Order with 1000/10/00 Sales Area, to sell the Materials
1000/10/00 Sales Area raise the Sales Order and Plant 1000 under Company Code
1000 confirmed Qtys.
Activity 3: 1000/10/00 Sales Area initiate Outbound Delivery (LF) in favor of end
customers of 2200/10/00 subsequently it raises Inter Company Invoice (IV) in favour
of “Inter Company Customer” who represents 2200/10/00.
Activity 4: 2200/10/00 Sales Area raises Standard Invoice in favour of its end
customers and it settles Inter Company Invoice.
Create End Customer of 2200/10/00 by using XD01 Transaction Code.
Create Material Master under Plant 1 and extended to other plant and make sure that
languages are maintained in Additional Data Option (In the Application Tool Bar) EN,
DN, FR save it and extend the same to other Company Code.
Go to MB1C and Initialize the stocks in 1000 Plant. Create Customer Master as a
Inter Company Customer under 1000/10/00 Sales Area to represent 2200/10/00 and
assign this Customer to Sales Organization of 2200/ by going to
Path: IMG
Billing
Inter Company Billing
Define
Inter Company Customer Number by Sales Organization.
Choose Sales Organization 2200 and Assign Customer Number (Ex: 17).
Set Up Sales Line with 2200//10/1000.
Path:
IMG
Assignment
Assign Sales Organization – Distribution Channel – Plant.
Go to VA01 and raise the Sales Order for End Customer of 2200/10/00 Sales Area
and Change the line Item Plant as a 1000. Maintain condition value for PI01 as a
Cost Price. Save it and Exit.
Go to VL01N and initiate outbound delivery from 1000 shipping point.
Create Transfer Order (LT03): Transfer Order is nothing but instructing the system
to pick Material from 1 source to put away in another source.
Specify Warehouse Number, Plant, Delivery Number press enter and save it and
note down the Transfer Order Number.
Go to VL01N and do the PGI (Post Goods Issue).
Go to VF01 and raise the Standard Invoice.
In Billing Document also we have to maintain PI01 manually and save it.
Go to VF01 and raise the Inter Company Invoice. Here also to maintain PI01 and
Save it.

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Third Party Sales Order
In Business some Materials may be procured from External Vendors or some
Materials may be purchased from External Vendors as a Traded Products.
To Procured or Purchased from External Vendors business has to raise “Purchase
Requisition”. With reference to Purchase Requisition Business has to raise
“Purchase Order”. Once the Purchase Order sent to the vendor, vendor raises
“Sales Order” and initiate outbound delivery. With reference to this Inbound
Delivery business has to post “Goods Receipt”. With reference to Goods Receipt
business has to verify “Invoice”. With reference to Invoice business makes
“Vendor Payment”.
Third Party Sales: In third party sales vendor directly delivers the goods to the
customer and Invoice to be raised with reference to this outbound delivery in favour
of Business.
Individual Purchase Order: In Individual Purchase Order vendor delivers the goods
to the business and business in turn delivers the goods to the customer.
Configuration Settings for Third Party Sales Order:
Create Material Master with General Item CatExory Group BANS.
VOV7 of TAS
TA + BANS + NIL + NIL = TAS
Billing relevance : F – Order Related Billing Document – Status according to Invoice
Qty.
If Purchase Requisition raised for 100 items, Purchase Order raised for 100 items,
but goods delivery carried out for 75 items by the vendor. Then Purchasing
department confirms Invoice Qty then system carried out billing process for 75 items,
billing document status updated according to Invoice Qty.
B – Relevant for Order related billing status according to order qty. When the
business wants to raise Invoice based on Purchase Order Qty billing relevance
should be “B”
Pricing – X
VOV6 of CS
Movement Type – NIL
Order Type : NB – Due to Assignment of Order type NB system automatically
triggers creation of Purchase Requisition for the line item in the Sales Order.
Item CatExory : 5 – Third Party
Account Assignment : 1 – Third Party
Uncheck Item Relevant for Delivery
Uncheck Purchase Requisition delivery
Uncheck TOR
Uncheck Availability Check
Go to XK01 and Created Vendor Number.
Vendor Number - External
Company Code – 1000
Purchase Organization – 1000

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Account Group – 1000
Create Customer Master
Item CatExory BANS
Schedule Line CatExory – CS
Save it.
Go to VA02 check Schedule Lines and note down Purchase Requisition Number
created by system.
Go to ME21N and raise standard Purchase Order (NB) with reference to this
Purchase Requisition, then system copy the data from Purchase Requisition.
Go to MIGO – Goods Receipts
Specify Purchase Order Number
Check Item OK and click on Post Document.
Go to MIRO / Invoice Verification,
Specify the Purchase Order Number in P O Reference Tab and Specify Invoice Date,
Invoice Amount under Basic Data Tab.
Press Enter and check the balance. The Balance should be ZERO.
Go to VF01 and raise Invoice with reference to Sales Order.
Save it and check the document flow.


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Individual Purchase Order
In individual purchase order unlike third party sales order vendors delivers the
goods to the business, business in turn delivers goods to the customers.
General Item CatExory Group “BANC” in the material master determines that
scenario is a individual Purchase Order.
Item CatExory Determination:
TA + BANC + NIL + NIL = TAB
Schedule Line CatExory Determination:
TAB + NIL = CB
VOV7 of TAB
Special Stock – E
Billing Relevance – A
Pricing – X
VOV6 of CB
Movement Type – 601
As business receive the stock and it should be delivered to Sales Order movement
type should be assigned.
Order Type – NB
Item CatExory – 0
Account Assignment CatExory – E
Check Item relevant for delivery.
Check Purchase Requisition, Delivery Schedule.
As the Business has to receive the goods from the vendors and business has to
delivered the goods to the customers. System has create delivery schedule in
purchasing document. It should be activated.

Process Flow:
IN
QT
OR
MIGO
LF
F2
Go to ME21N and raise the Purchase Order with reference to Purchase Requisition
Number.
Go to MIGO
Check Line Item
Click on Post Icon
Go to MMBE
Check the Balance Stock
Go to MIRO
Specify the Purchase Order Number with reference to the Purchase Order. With this
Invoice is going to be verifies by MM and save it.
Go to VL01 and initiate outbound delivery.
Save the Delivery Document.
Go to LT03 to Sales the Transfer Order.
Specify the Warehouse number, Plant, Delivery Document Number and press enter.
Go to VL02N and do the PGI.
Go to VF01 and raise the Invoice.
Go to VA02 and check the document flow.
Go to MMBE and check the stock, then it is ZERO stock after PGI.
To carryout Inbound and Out bound Deliveries.

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Define Delivery Document
To carryout Inbound and Outbound delivery documents is going to be created with a
common structure. Every delivery document is made up with Header Level CatExory
and Item Level CatExory. Item CatExory is going to be copies from Sales
Document to Delivery Document. It new Item entered in the Delivery Document, new
item catExory is going to be determined Delivery Document Header (LIKP) and
Delivery Item CatExory (LIPS).
Define Delivery Document Type (OVLK)
PATH:
IMG
Logistics Execution
Shipping
Deliveries
Define Delivery Types
Here Delivery Document Types – E
Ex:
LF – Delivery
LR – Return Delivery
BV – Cash Sales
LFKO – Correction Delivery
LO – Delivery without Order Reference
Choose LF
Document CatExory : J – Delivery
Order Required – S O Required
The value of this field makes preceding document as a mandatory document for
delivery document.
Default Order Type (DL – TSUDO Document):
Assign Sales Document Type as a TSUDO Document type if Delivery Document is
going to be raised without reference to Sales Order.
Technically One Sales Document Required.
Item Requirement: 202 – Order with Independent Document Item
It identifies a routine for delivery item that doesn’t refer to a Sales Document.
Ex: If you want to create delivery items for returnable packaging if the system wants
to track stock of the materials routine number should be assigned.
Storage Location Rule:
Ex
MALA – Shipping Point / Plant / Storage Location
RETA – Plant / Situation (SITUA) / Storage Condition
MARE – MALA, then RETA (Back up Procedure)
If warehouse configured then system has to pick Qtys from the storage bin or storage
rack by determining storage location automatically. To determine storage location
automatically system may use stock determination rule.


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Text Determination Procedure: 02
In IMG we define text determination procedure to propose text for delivery document
header.
(Path: IMG
Logistics Execution
Shipping
Text Control)
Document Statistics Group: Blank
Assign Statistical relevancy to update statistical data of the delivery document.
Output Determination Procedure: V10000
To determine output for Outbound Delivery Documents. In IMG we define Output
Determination Procedure.
PATH:
IMG
Logistics Execution
Shipping
Basic Shipping Structure
Output Control
Maintain Output Determination for Outbound Deliveries
Maintain Output Types
Here Output Types are
CANO – Forwarding Notification
KRML – Shipping Notification to Ship to Party
LDOO – Delivery Note
MAIL – Mail
PL00 – Picking List
Here Output Type : LD00
Application : V2 – Shipping
Assign Application Area where the Output should be generated.
Route Determination: New Route Determination without check
Assign route determination rule to determined route in the delivery document.
Check Delivery Split – Warehouse Number: This indicator specifies whether
system has to split delivery document if warehouse number defers in the Sales
Document.
Check Delivery Split Partner: This indicator controls system split behavior when
delivery document proceedings that are assigned to different partner functions.
Check Automatic Packing: If it is activated automatic packing proposal is retrieved
when delivery is created. That means for all items automatic packing is going to be
carried out.


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Check General Packing Material Item: This indicator determines whether we want
to permit generation of delivery items for packaging materials in deliveries of this
delivery type. It can be used to generate bill for packaging materials to customers
and also packaging materials can be managed in inventory management.
Partner Determination Procedure: LF. In IMG we define Partner Determination
Procedure to propose relevant partner functions. Ex: Ship to Party.
Path:
IMG
Basic Functions
Partner Determination set up Partner Determination for Delivery
Save it.
Define Delivery Document Item CatExory (LIPS): Transaction Code OVLP.
The system which is not going to be copies from Sales Document system determines
New Item CatExory. Ex: DLN
Choose Item CatExory DLN – Standard Order Without Order.
Document CatExory : J – Delivery
Classifying the Delivery Document Item CatExory.
Material / Statistics:
Check Material Number: 0 – Allowed. This indicator allows to initiate outbound
delivery for a line item in the delivery document item whose order Qty = 0.
It is relevant for Text Items.
Item CatExory Statistics Group:
1 - Order. Debit Memo
The value of this field determined whether the statistical data gets updated in LIF
(Logistic Info System)
Stock Determination Rule
Blank
Check Qty Zero : A – Note about the situation
It specifies whether delivery document item can be maintained with Qty zero when in
delivery a new Item enter with Qty Zero, then this value determines the system
response.


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Check Minimum Qty: A – Note about the situation
The value of this field determines system response. If delivery document Item Qty
has not been reached to the Qty which was specified in the Material Master.
Check Over Delivery: The value of this field determined system response if over
delivery takes place for delivery document item.
Availability Check Off: The value of this field determines that system has to
carryout availability check for line item in the delivery document.
Rounding: Assign rounding profile to delivery document item.
Warehouse Control and Packing
Check Relevant for Pricing: This indicator determines delivery document lone item
is relevant for picking. Ex: Storage Bin or Storage Location.
Check Storage Location Required: This indicator determines storage location is
required for delivery document line item.
Check Determine Storage Location: This indicator specifies that system has to
follow storage location determination rule for delivery document item.
Don’t Check Storage Location: This indicator determines whether system has to
carryout a check for storage location which was determine automatically for a
delivery document line item (According to System).
No Batch Check: This indicator specifies that whether system has to carryout batch
number checking for a line item in the delivery document.
Packing Control
Can be Packed: The value of this field determines whether
packing can be carried out or not for a line item in the delivery document.
Check Packing According Batch Items: This indicator specifies whether packing
can be carried out for a delivery document item according batch number.
Check Automatic Batch Determination: This indicator determine automatic
determination of batch for a line item in the Sales Order.
Save it and Exit.
Define Item CatExory Determination in Deliveries (0184): System determines item
catExory in delivery document by taking 4 factors into consideration.
Delivery Type : LF
Item CatExory Group : NORM
Usage : NIL
Higher Level Item CatExory : NIL – Default Item CatExory.
= DLM


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Define Shipping Point Determination:
PATH:
IMG
Logistics Execution
Shipping
Shipping Point and Goods Receiving Functions
a. Define Shipping Condition : 10 - Immediately
b. Define Shipping Condition by Sales Document Types
Ex: BV or OR : 10 – Immediately
c. Define Loading Groups : 003 - Manual
d. Assign Shipping Point : As shipping point is going to be determine automatically by
taking 3 factors into consideration.
1. Shipping Condition
2. Loading Group
3. Plant
= Proposed Shipping Point and Manual Shipping Point.


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PACKING
In Business Materials are determined with packing material. Packing Materials
maintained in the Business as a Normal Inventory. Packing can be carried out during
Sales Order Processing or Delivery document processing usually at delivery
document as a DLN.
a. Define Number Ranges for Handling Units: |Handling Unit is nothing but a
Packing Material to be packed.
Path:
IMG
Logistics Execution
Shipping
Packing
Define Number Ranges for Handling Units.
Click on Change Intervals Icon
Click on Interval Icon
Define Number Ranges.
b. Packing Control by Item CatExory: Here for Delivery Document Line item is
going to be controlled for packing item.
Define Packing Material Types: Ex: Cranes, Trucks and Pallets. This packing
materials are assigned to Material Master.
Ex: V075 Skeleton Box.
Save it and Exit.
Define Material Group for Packing Material: Here Packing Materials are grouped
that can be used to pack similar materials. Ex: G010.
Define Allowed Packing Materials:
Go to New Entries
Assign Packing Material Type
Ex: V075 to Material Group for Packaging Material. Ex:G010
Go to MM01 and Create Material Master with a Material Type Packaging and make
sure that data maintained in
Basic Data 1: Material Group Packaging Material G010.
Sales : General / Plant: Assign Packing Material Type V075
Assign Allowed Packaging Weight : 1000
Remaining Data is same as other Material.


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Go to MM01 or MM02 Material that is to be packed and maintain packaging material
data in Basic Data 1 G010.
It enables the system to pack this material in a packaging material type.
Ex: Skeleton Box.
Go to OMS2
Choose Material type VERP and check Qty updating.
Go to MB1C and initiate the stock.
Go to VA01 and raise the Sales Order for a Material that is to be packed.
Go to VL01N and do the picking select line item.
Go to Edit and Pack.
Select Material that is to be packed in that lower section screen and specify the
packaging material in the upper section screen.
Select two Line Items.
Go to Edit
Pack
Pack
Go back and maintain storage location.
Do the Picking and PGI
Go to VF01 and raise the Invoice and save it.
Go to MMBE
Check the stock of Packaging Material.


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RETURNABLE PACKAGING
Process Flow:
A. Scenario 1:
B. Scenario 2:

OR
OR

LF
LF

F2
F2

LA
LF

LR
F2

In Business some Materials can be delivered with returnable packaging materials.
Customer receives the goods with returnable packaging materials, and the returnable
packaging material should be returned to business.
Returnable Packaging materials managed as a normal inventory with special stock
indicator as the ownership of returnable packaging materials still remains with
business. In returnable packaging there are two scenarios.
A. Customer should return the returnable packaging material to the Business.
OR
LF
F2
LA
LR
B. If the Customer doesn’t return the returnable packaging material, business bills
the customer.
Create Material Master by specifying Material Type Returnable Packaging.
Maintain Data in
Basic Data 1: Description
General Item CatExory Group : LEIH
Material group of Packaging Material : G010
Sales General / Plant:
Packaging Material Type : V075 – Skeleton Box
Go to OMS2
Check Quantity updating for LEIH
Go to MB1C and initialize the stock
Save it and go back,
Scenario 1: Go to VA01
Maintain Data
Go to VL01N
Select Line Item – Specify returnable packaging material.
Select Two Line Items – Edit – Pack – Pack
Go back and carry out PGI
Go to VA01 and
specify Document Type : AT
Item CatExory : LAN
Schedule Line : F3
Movement Type : 622

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Save it.
Go to VL01N and carry out inbound delivery
Select PGR
Save it.
Go to MMBE and check the balance.
Scenario 2:
If the Customer doesn’t returns returnable packaging material
Go to VA01
Specify Document Type : LN
Item CatExory : LAN
Schedule Lines : C3
Movement Type : 623
Save it.
Go to VL01N
Save it.
VOV8 of LA
SD Doc CatExory : C
Delivery Type : LR
VOV7 of LAN
NIL
VOV6 of F3
Movement Type : 622
Check Item Relevant of Delivery
VOV8 of LN
SD Doc CatExory : C
Delivery Type : LF
Delivery Related Billing Type : F2
VOV7 of LNN
Special Stock : V – Returnable Packaging with Customer
Billing Relevance : A – Delivery Related Billing Document
Pricing : X
Save it.
VOV6 of C3
Movement Type : 623
Check Item Relevant of Delivery
Check TOR and Availability Check.

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Save it.

Billing Document Type
Billing related transactions are captured into billing documents. Billing Document has
a structure.
Header Level CatExory : VBRK
Item Level CatExory
: VBRP
Note: For Billing Documents Incompleteness Procedure can not be configured, since
billing document doesn’t have any subsequent document processing.
Define Billing Types (Transaction Code : VOFA)
Path:
IMG
Billing
Billing Documents
Define Billing Types
F2 – Invoice
S3 – Invoice Cancellation
BV – Cash Sales
SV – Cash Sales Invoice Cancellation
G2 – Credit Memo
S2 – Cancel Credit Memo
L2 – Debit Memo
IV – Inter Company Billing
ZIV – Cancel Inter Company Billing
RE – Credit for Returns
B1 – Rebate Credit Memo
B2 – Rebate Correction
B3 – Rebate Partial Settlement
B4 – Rebate Accruals Manual
F5 – Proforma for Order
F8 – Proforma Invoice for Delivery
Choose F2
Go to details Icon
Number Range Intervals Assignment
General Control
SD Document CatExory : M – Invoice
Billing CatExory :
(Technically Required for only some documents)
Document Type : Ex: RV
Assign Financial Document type (RV) i.e. to be generated automatically with
reference to this billing document type.


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NExative Posting : A (NExative Posting for Same Period)
The value of this field determines whether nExative postings are allowed or not for
this billing document type (Specify period – Allowed)
Billing Document doesn’t have any external number range assignment.
Branch / HO:
The value of this field determines the relation between the Branch Office and Head
Office for Invoice.
Customer = Payer / Branch = Sold – to – Party
A Customer = Sold – to – Party
B Customer = Payer
It has a intExration with customer master company code data section A/C
management Head Office field.
Customer Master
Company Code Data
Accounts Management
HO
Credit Memo/ with value date
If this indicator is activated then system takes base billing document date to settle
credit memos with reference to the billing documents.
Invoice List Type : Ex: LR
Assign Invoice listing type to this billing type then system automatically proposes
when the user raises invoice for this billing document type.
Rebate Settlement: The value of this field is relevant for Rebates that specifies type
of Rebate settlement.
Ex: Final Settlement, Partial Settlement
Cancellation
Cancellation Billing Type : Ex: S1
Assign Cancellation Billing Type (S1) then system automatically propose to cancel
the Invoice.
Ref No / Allocation No:
Sales Order Number or Purchase Order Number or Delivery Order Number can be
assigned as reference and allocation numbers that are transferred to FI/CO module.
These Two No’s are required by FI/CO user to sort out FI documents.


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FAQ: What are the Two fields that are transferred to FI/CO module after saving
Invoice?
A. Reference Number
B. Allocation Number
Account Assignment / Pricing:
Account Determination Procedure : Ex: KOFI00
Assign Account Determination Procedure to billing document type (F2) by which
system transfers billing information SD to FI.
FAQ: What is the difference between Proforma Invoice and Standard Invoice?
OR
How you will differentiate there two?
Ans: Proforma Invoice doesn’t have Account Determination Procedure as it need not
to transfer Billing information from SD to FI.
Output / Partners / Texts:
Output Determination Procedure : V10000
Define output determine procedure in
IMG
S&D
Basic Functions
Output Control
Output Determination using Condition Technique
Maintain Output
Determination for Billing Document
Maintain Outputs Types.
Ex: RD00 – Invoice.
Output Type : RD00
Header Partners : FK
Item Partners : FP
In IMG Partner Determination Procedure defined and assigned to Billing Document
Header and Item.
Path: IMG
Basic Functions
Setup Partner Determination
Setup Partner Determination for Billing Document Header, Item
Text Determination Procedure for Billing Document Header and Item
Ex: 05
In IMG Text Determination Procedure defined and assigned to Billing Document
Header and Item.
Check Delivery Text
This indicator copies text from the Delivery Document Header.


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Check Posting Block
This indicator blocks the Sales Document (Billing Document) from posting in FI. If it
is activated user has to release the document manually.
Check the Statistics
This indicator updates statistical data in LIS.
Check Relevant for Rebate
Active this indicator to map rebates as a one of pre-requisite together with other two
factors that are definition of Sales Organization customer master payer.


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MAKE – TO - ORDER
Business produces material based on MRP irrespective of the Sales Order. I.e.
Make To Stock.
If the standard product is going to be changes slightly according to the customer
requirement then business manufacture that particular material for particular
customer is called as Make To Order.
Inventory is going to be maintained with special stock indicator “E” (E – Orders on
Hand)
Create Material Master by maintaining General Item CatExory Group – 0001 (Make
To Order).
Availability Check – 02
Transportation Group – 0001.
Item CatExory : TAK
Schedule Line CatExory : CP
Requirement Type (Procurement Tab) : KE (Individual Customer Order without
Consumption)
Requirement Class : 040 (Transaction Code OVZG)
Special Stock : E
VOV7 of TAK
Billing Relevance : A
Pricing : X
Go to MB1C
Maintain stock with a special stock indicator “E”
Movement Type – 561
Special Stock – E
Specify the Sales Order Number, Line Item Number and save it
Go to VL01N
Maintain Data
Go to VF01
Save it.


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VARIANT CONFIGURATION
In Business some Materials are going to be manufactured according to the
requirements of the Customers. Those Materials are called Configurable Materials.
That can be configured according to Customer requirements during Sales Order
Processing.
Every configurable material is a “Object”. Every Object has “Characteristics”. Every
Characteristics has a “Single or Multiple Values”.
Ex: Configurable Material = CAR (Object)
Car has Engine, Steering, Color, Body (Characteristics)
Radial Tyres or Normal Tyres is single or multiple values.
Business some times manufacturers these characteristics in advance without taking
Sales Order into consideration as a normal finished goods and maintain inventory as
a variant.
Business can calculate variant pricing also.
Configurable Material can be exploded as a BOM.
Requirements are transferred to MRP by requirement type “KEK”
Material should be maintained in inventory with a special stock indicator “E”
To control configuration dependencies can be used.
Dependencies controls the combination of characteristics and their values.
Variant configuration in SAP doesn’t / can not control complete configuration.
Variant configuration in SAP has a intExration with CA – Classification
LO – Material Master
PP – Bill of Material, Routings, MRP, Production Orders, Master Receipts.
SD – Sales, Conditions
MM – Purchasing
CO – Costing and Technical Module.


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PROCESS FLOW

Create Configurable Material - MM01
Create Characteristics
Create Class - CL01
Assign Characteristics to Class
Create Configuration Profile - CU41
Create Object Dependencies - CU01
Assign Object Dependencies
Create Variant Condition Records - VK11
Simulate Configuration
Create Sales Order
Basic Settings from MM Module (Required)

Step1:
Define MRP Groups:
Path:
IMG
Material Management
Consumption Based Planning
MRP Groups
Carryout Overall Maintenance of MRP Group
Specify Plant and create
Specify MRP Group with description
Create
Create
Save it
Maintain
Specify MRP Group and

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Click on Maintain
Click on Scheduling / Document Type
Select Scheduling Info Record and
Assign NB to standard purchasing order
Document type for subcontracting and stock transfer order document.
Click on rescheduling Horizon
Specify 7 Days
Save it and go back
Planning Horizon (Click on)
Specify 7 as planning Horizon
Save it and go back
Check maximum MRP Interval (Click on)
Specify 7 as value
Save it and go back
Click on safety stock
Specify 100 as Available safety stock
Creation Indicator (Click on)
Create Purchase Requisition : 1
Create MRP List : 1
Schedule Lines : 3
Click on Project Planning Requirements Grouping
Check Grouping Requirement
Save it and go back and exit.
Define MRP Group for Each Material Type
Go to New Entries
Specify Material Type : KMAT
Plant and MRP Group (Created in Previous Step)
Save it and Exit.
Define MRP Controllers
Path:
IMG
Materials Management
Master Data
Define MRP Controllers
Choose standard MRP controller Ex: 1000
Click on Copy as Icon and
Define MRP Controller
Save it and Exit.


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Define Scheduling Margin Key
Path:
IMG
Material Management
Planning
Define Floats (Scheduling Margin Key)
Choose Standard Floats Ex: 0099 (Plant); SMK = 002
Click on copy as and rename it with our plant
Save it and exit.

Create Configurable Material
Path: Logistics
Material Master
Material
Create (Special) MMK1 – Configurable Materials
Specify Industry Sector (mechanical Engineering)
Click on Select Views and Select Views Basic Data, Classification, Sales : Sales
Organization Data 1 and 2, Sales : General/Plant Data, MRP 1,2 and 3
General Item CatExory Group : 0002 – Configurable Configuration Management
CM Relevance : Relevant for Configuration Management
Classification:
Enter into the View
Sales : Sales Orgn Data 1:
Delivering Plant :
Tax Classification No :
Conditions :
Sales : Sales Orgn Data 2:
Material Statistic Group : 01
Volume Rebate Group : 001
Material Pricing Group : 01
Account Assignment Group : 03
General Item CatExory Group : 0002
Item CatExory Group : 0002


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Sales : General / Plant:
Checking Group of Availability Check : 02
Transportation Group :
Loading Group :

IMP

M R P 1:
MRP Group :
MRP Type : PD
MRP Controller : EX Lot Size
M R P 2:
Procurement Type : E - In House Production
In House Production : 7 – Days
Scheduling Margin Key : 002

M R P 3:
StratExy Group : 25 – Make To Order for Configurable Material.
Save it.

Step 2:
Create Characteristics:
Characteristics are nothing but features of object (Object = Material)
(Transaction Code : CT04)
Path: Logistics
Cross Application Components
Classification System
Master Data
CT04 – Characteristics


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Characteristic Description Characteristic Data
No of
Value
Values
Name
Group
Type Characteristics Assignment
Engine_Cap Capacity
Automotive Character
16 Single
800CC, 1000CC
Format
Value
1400CC, 2000CC
Transmission Transmission Automotive Character
16 Single
1+4, 1+5, 1+6,1+7
Format
Value
Fuel
Fuel
16 Single
Petrol, Diesel, CNG
Format
Value
Steering
Steering
16 Single
Normal, Power
Format
Value
Tyre
Tyre
16 Single
Cross Play, Radial
Format
Value
Accessories Accessories Automotive Character
16 Multiple
Sterio, Seat Belt,
Format
Value
Perfume
Comforts
Comforts
16 Multiple
AC, ADL, AB
Format
Value
ZSDCOM
ZSDCOM
16 Multiple
ST, SB, Perfume
Format
Value
Table Name: SDCOM
Field Name: VKOND
Save it.
Note: To carryout Variant Pricing one Characteristic should be created i.e. ZSDCOM
for characteristic(s) to which surcharge or discount is going to be collected.
Standard Table i.e. SDCOM with standard field VKOND should be assigned in
additional data tab.

Step 3:
Create Class (CL01)
Class holds characteristics that can be assigned to Materials (Master). Through
configuration profile class can be assigned to Material.
Path: Logistics
Cross Application Components
Classification System
Master Data
CL02 – Create
Specify the Class Name : Ex: ZCAR
Class Type : Ex: 300 – Variants
Description
Check Warning Message
Characteristics Tab: Assign all Characteristics that we created under 2nd Step.


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ENGINE_CAP
TRANSMISSION
FUEL
TYRE
ACCESSORIES
COMFORTS
STEERING
ZSDCOM
Save it.

Step 4:
Create Configuration Profile (CU41):
Path: Logistics
Central Functions
Variant Configuration
Configuration Profile
CU41 – Create
Choose Material
Specify the Material Number
Press Enter
Specify the Profile Name : Ex: ZCONFIG_Profile
Assign Class Type : Ex: 300 – Variants
Organizational Areas : V – Sales and Distribution
Status : 1
Click on Class Assignment
Specify our Class : Ex: ZCAR
Press Enter
Save it.

Step 5:
Create Object Dependencies (CU01): Dependencies allows us to create
relationships and restrictions between different characteristic and characteristic
values.
1. Ex: Preconditions
Preconditions are used to hide the characteristics and characteristic values that are
not allowed and there by ensures that configuration of an object is consistent.
Ex: If Engine_Cap = 800CC then system should not display comforts.
Engine_Cap IN (‘1000CC’, ‘1400CC, ‘2000CC’)
Go to CU01
Path: Logistics
Central Function
Variant Configuration
Dependency
Single Dependency
CU01 – Create
Specify Dependency Name

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Ex: ENGINE_CAP_COMF_RECORD
Press Enter
Status : 2 (IN Preparation)
Select Dependency Type and select
Precondition
Click on Dependency Editor and write the code.
CODE:
000010 ENGINE_CAPIN (100cc, 1400cc, 2000cc)
Select Check Button and Execute
Save it
Change the Status as 1 (Release)
2. Selection Conditions:
Selection conditions are used to ensure that all the objects relevant to a variant are
selected.
Selection conditions determine which variants required a specific component or a
operation.
Selection conditions determine when it is a mandatory to assign a value to a
characteristic.
Ex: 800cc, 1000cc, 1400cc cars can have only “Petrol” as a Fuel. Where as
2000cc cars can have “Petrol / Diesel / CNG”
Go to CU01
Specify Dependency Name : ENGINE_CAP_FUEL_SELECCOND
Specify Description : ENGINE_CAP_FUEL_SELECCOND and
Select select condition
Click on Dependency Editor and write the Code.
CODE:
000010 ENGINE_CAP = ‘2000cc”.
Check it (CTRL + F2)
Save it
Change the status as a 1 released
Save it.
3. Action Conditions
Action Conditions are used to infer values for Characteristics. Values that are set by
an action can not be over written.
Ex: 1000cc Car can be supplied only with 1+4 transmission system. That means if
user selects ENGINE_CAP=’1000cc’ then system automatically proposes 1+4 as a
transmission.


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Go to CU01
Specify Dependency Name : ENGINE_CAP_TRANS_ACTION
Specify Description : ENGINE_CAP_TRAN_ACTION
Select Action
Click on Dependency Editor and write the Code 000010 SELE.TRANSMISSION =
‘1+4’ if ENGINE_CAP = ‘1000cc’
Check it and Save it.
Change the status as 1 Release
4. Procedures:
Procedures are used to information values for characteristics like “Actions” but
unlike “Actions” the values that are proposed by procedures can be overwritten.
Ex: Radial Tyres can be given for ‘1400cc’ and ‘2000cc’ with Power Steering and
Cross Play Tyres can be given for ‘800cc and 1000cc” cars with Normal Steering.
Go to CU01
Specify Dependency Name : ENGINE_CAP_ST_PROCEDURE
Specify Description : ENGINE_CAP_TY_ST_PROCEDURE
Select Procedure
Click on Dependency Editor and write the Code 000010 $ SELF.TYRE = ‘RADIAL’ if
ENGINE_CAP.IN (‘1400cc, 2000cc) and
000020 $ STEERING = “POWER’
000030 $ SELF.TYRE = ‘CROSSPLAY’ if ENGINE_CAP IN (‘800cc, 1000cc) and
000040 $ STEERING = NORMAL.
Click it and Save it.
Change the status 1

5.Create Action Dependency to Carryout Variant Pricing (Accessories)
Go to CU01
Specify Dependency Name : ZVARIENTPRICING_ACC_ACTION
Specify Description : ZVARIANTPRICING_ACC_ACTION
Select Action
Click on Dependency Editor and write the Code
000010 $ SELF.ZSDCOM = ‘ST’ If Accessories = ‘ST’
000020 $ SELF.ZSDCOM = ‘SB’ If Accessories = ‘SB’
000030 $ SELF.ZSDCOM = ‘PER’ If Accessories – ‘PER’
Check it and Save it.
Change the status 1
Save it and Go back.


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Assign Dependencies to Characteristics and their Values:
Precondition
Go to CT04 of Comforts
Go to Values Tab
Select Value
Go to Extras
Object Dependencies
Assignments
Assign Precondition Object Dependency and go back.
Select another Characteristic Value
Go to Extras
Object Dependencies
Assignment
Assign Object Dependency Precondition and go back
Select another Characteristic
Go to Extras
Object Dependencies
Assignment
Assignment Object Dependency of Precondition
Save it and Exit.
Selection Conditions
Go to CT04 of Fuel
Go to Basic Data Tab and
Click on Object Dependencies Icon and
Assign Selection Condition Dependency
Save it.
Selection conditions can be assigned only to Characteristics, BOMs.
Action Conditions
Go to CU42
Specify Material : Ex: 813
Select our configuration profile
Click on Profile Detail
Click on Dependencies Assignment Icon
Assign Action Condition Dependency
Procedures
Go to CT04 of Tyre
Go to Values Tab
Select Characteristics Value
Go to Extras
Object Dependencies
Assignment
Assign Procedure Object Dependency
Go back and Assign Procedure Object Dependency to another Characteristic Value.
Save it.


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Create Variant Condition Record
Go to VA11
Specify Variant Condition Type VA00
Select Condition Table
Maintain Condition Records for Accessories (ST, SB and PER)
Save it and Exit.
Go to CT04 of ZSDCOM
Go to Values Tab
Select Value (ST, SB and PER)
Go to Extras
Object Dependencies
Assignment
Assign Action Object Dependency for Variant Pricing
(Repeat the same procedure for all values)
Go to V/08
Include Condition Type VA00 in surcharges section
Save it.
Simulate Configuration
Go to CU50 and Press Enter
Choose out Plant from the list
Specify our Material Number
Click on configuration Icon and
Check Dependencies Functionalities.
Go to VA01 and raise the Sales Order and check configuration profile effect with
variant pricing.
VOV7 of TAC
Configuration StratExy : 01
Material Variant Action : 2
Structure Scope : D
Application : SD01
Check Variant Matching
VOV6 of CP
Requirement Type : KEK – Make To Order for Configurable Material.
Note: Availability Check can not be carried out Make To Order Products.
Save the Sales Order.
Go to MB1C and initialize the stock with a special stock indicator E (Stock on Hand)
Go to VL01n and VF01.


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REBATES
Rebates are special kinds of discounts, that are going to be paid to the Customer –
Payer based on certain sales volume with in certain specified time period.
a. Check Rebate Processing Active should be activated while defining the Sales
Order.
b. Check Rebates should be activated at Customer – Payer.
c. Check Relevant for Rebates should be activated while defining Billing Document
Type.
Define Agreement Types:
Path:
IMG
Billing
Rebate Processing
Rebate Agreements
Define Agreement Types
Here Agreement Types Ex: 0001 – Group Rebate
0002 – Material Rebate
0003 – Customer Rebate
0004 – Hierarchy Rebate
0005 – Independent of Sales volume define.
Select 0002
Go to details Icon
Proposed Valid From
Proposed Valid To
Assign valid periods of Rebate Agreement.
Payment Method: Assign Payment Method that is going to be used for rebate
settlement. Ex: Cash, Cheque etc.,
Default Status:
Ex: A – Settlement is being checked for release
B – Agreement released for settlement
C – Settlement has been created
D – Final settlement of agreement already carried out.
Blank – Open.
Verification Levels: F – Display Totals by Payer / Material.
The value of this field specifies how the rebate agreement totals should be displayed.
Check Different Validity Period: The value of this field specifies that whether rebate
agreement condition records validity period should be same or not.


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Manual Accruals Order Type: Ex: R4
Assign Sales Document Type Ex: R4 that system automatically proposes when the
user performs manual posting of accruals. Ex: Business Agreed to pay Rs.10,000/to the customer if the product displayed in the Front Office (POP Display) with in
specified period, then Business has to post manual accruals in Rebate agreement
screen. Then system automatically creates Credit Memo request by using document
type (R4) which was assigned here.
Check Manual Accruals: This indicator specifies that manual accruals can be
posted for this rebate agreement type.
Manual accruals are posted in two scenarios.
a. For Lump sum Payment Processing
b. Manual Accruals Correction.
Agreement Calendar: In IMG we can define arrangement calendar for rebate
agreements that defines and controls validity periods.
Manual Payment Section
Payment Procedure: A – Payment Allowed up to the accruals value.
The value of this field specifies whether manual payments are allowed or not to this
agreement type, if they are allowed to which extent manual payment should be
allowed.
Partial Settlement: R3 – Partial Rebate Settlement Request.
Assign Sales Document type that system automatically uses for partial settlement.
Reverse Accruals: This indicator allows the system to reverse accruals
automatically at the time of Final Settlement.
Settlement Periods: Define Factory Calendar in which periodic settlements can be
defined and assigned to rebate agreement.
Settlement Section
Final Settlement: B1 – Rebate Credit Memo Request.
Assign Sales Document Type (B1) that system automatically proposes for Final
Settlement.
Minimum Status: B – Agreement Released for Settlement.
Set the minimum status for rebate agreement for final settlement by which system or
user can understand status of the rebate agreement.
Correction: B2 – Rebate Correction Request
Assign Sales Document Type (B2) that system automatically uses for correcting
rebates.
Save it and Exit.


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Condition Technique for Rebate Processing
a. Create Condition Table: Ex: 011 - MATNR
b. Maintain Access Sequence: Ex: BO02 – Material Rebate
Assign Access Sequence CatExory. Ex: 1 – Rebate and Assign Condition Table
which was created previous step.
Define Condition Types: Define Condition Types
BO01 – Group Rebate
BO02 – Material Rebate
BO03 – Customer Rebate
BO04 – Hierarchy Rebate
BO02 – Hierarchy Rebate / Material
BO06 – Sales Independent Rebate
Check BO02
Access Sequence BO02
Condition Class : C – Expense Reimbursement
Calculation Type : C – Quantity
Plus / Minus : X
Scale Basis : C
Check Value : A
Rebate Procedure : Blank – Dependent on Sales volume
A – Independent on Sales Volume (It is for Independent Sales Volume Rebates)
Rebate Accruals correction procedure: Blank – Always Corrected
A – Never Corrected
B – Corrected if no manual accruals have been whether posted.
The value of this field determines whether posted rebate accruals can be corrected ot
not.
Save it.
Maintain Pricing Procedures:
Choose our Pricing Procedure
Go to discount condition steps and include condition type BO02 with Requirement
Type 024 – Only in Billing Document and Assign sub-total as a 7.
And Assign Accounting Key “ERB” and assign Accruals Key “ERU” save it and exit.
Account Determination for Rebates:
Click on Assign GL A/cs
Click on Accounting Key
Go to New Entries
Maintain Entries
Application Type : V
Condition Type : KOFI
Chart of Accounts : INT
Sales Orgn : Our Sales Organization
Accounting Key : ERB
GL A/C No: 883000
Go to Next Line
Specify Application Type : V
Condition Type : KOFI

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Chart of Accounts : INT
Sales Organization : Our Sales Organization
Accounting Key : ERU
And Assign G/L Account Number in second field that is for accruals.
Activate Rebate Processing:
a. Select Billing Documents for Rebate Processing.
Choose Billing Document Type F2 and Check relevant for Rebate. Save it and Go
back.
b. Activate Rebate Processing for Sales Organization:
Choose our Sales Organization and Check Rebate Processing Active Indicator.
Save it and Exit.
Create Rebate Agreement (VB01)
Path: Logistics
Master Data
Rebate Arrangements
Rebate Arrangements
VB01 – Create
Specify Agreement Type : 0002 and Press Enter
Specify the Rebate Recipient (Customer _ Payer Number)
Click on Conditions
Maintain Condition Records with Scales
Save it.
Go to VA01, VL01N, VF01 (Go to Item Condition Screen in the Invoice and check
Rebate Condition Type BO02 Activate or not).
Go to VB02 to check the Sales Volume.
Specify the Agreement Number and Press Enter
The Sales Volume for Agreement 88 is not Current
Go to SE38 and run the report that is SDBONT06.
Specify the Programme Name
Click on Executive Icon
Click on Selection Screen
Click on Execute
Click on Add up values.
Again go to VB02
Click on Sales volume Icon
Check the Updated Sales Volume
Click on verification Level
Go back
Click on (Pay) Create Manual Rebate Payment Icon
Specify the Amount.
Save it and note down the Credit Memo Request Number
Go to VF01 and raise the Credit Memo.


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LOGISTICS INFORMATION SYSTEM (L I S)
To generate statistical reports business requires statistical data “Transactional Data”
which can be converted into historical data. To capture historical data business
requires “Warehouse” that is called as a Data Warehouse.
Data is going to be uploaded into Data Warehousing Server from operative modules
“Functional Modules” from where reports can be generated.
SAP provided Data Warehousing solution that is called open data warehouse
“ Logistics Information System or LIS”.
LIS consists of “Info Structures” to each and every operative module.
Ex: Sales Info Structure (SIS) for Sales and Distribution.
SIS consists of 3 elements that are
a. Characteristics
b. Key figures
c. Unit
By using these 3 factors SIS can be develop and Data can be uploaded by defining
Updating Rules “ETL Process”. Once data uploaded into SIS by using OLAP
(Online Analytical Processing) Tools “Standard Analysis, Flexible Analysis reports
can be generated”.
Characteristics: These are the values that can not be accumulated.
Key Figures: Are the values that can be accumulated.
Unit Period: Time Period.
Develop SIS to generate report that should consist of Sales Area, Sold To Party,
Material and Net Order value.
a. Maintain Self Defined Field Catalogs for Characters and Key Figures
Path:
IMG
Logistics Information System (LIS)
Logistics Data Warehouse
Data Basis
Field Catalogs
Maintain Self Defined Field Catalogs
Click on Create
Create Field Catalog for characteristics
Specify the Field Catalog Name with Description
Specify Application : 01 – Sales and Distribution.
Select Charact . Catalog
Press Enter
Click on Characteristics Icon

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Choose Sales Document : Header Data Option from Source Table Screen (Right
side Screen) and select the fields Sold To Party (KUNNR), Sales Organization
(VKORG), Distribution Channel (VTWEX), Division (SPART) and Material (MATNR)
from Sales Doc : Item Data option.
Click on Copy + Close option
Click on copy
Save it go back and Create Field Catalog for Key Figures.
Specify the Field Catalog Name with Description
Specify Application : 01 – Sales and Distribution
Select Key Figures field catalog option
Press Enter
Click on Key Figures
Select Sales Doc : Header Data Option from Source Table
Select Net Value (NETWR)
Click on Copy + Close
Click on Copy
Create Info Structure:
Path:
IMG
Logistics Information System
Data Basis
Information Structure
Logistics Data Warehouse
Maintain Self-Defined Information Structures
Create
Specify Info Structure Name (Between S501 To S999).
Specify the Application : 01 – S & D
Specify type of IS (Info Structure) : Blank – Standard
C – Without Period Unit
T – Transfer to SAP-BW
Specify Blank
Check Ping Possible
Click on Choose Characteristics Option
Select Characteristics field catalog
(Which was created in the previous step)
Select the fields from Field Catalog Fields
Click on Copy + Close Icon
Click on Copy
Click on Choose Key figures option
Select Key Figures field catalog and select the fields from the field catalog fields
Click on Copy + Close
Click on Copy
Assign Unit as a 31 (WAERK) Doc Currency
Check Sum. If it is activated, system accumulates the key figure values.
Check Fix. Set this indicator if you want to Fix the values of this Key Figure in the
planning table of Flexible Planning.
Save it, check it and click on generate, Go back Save it and Exit.


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Maintain Update Rules:
Path:
IMG
Logistics Info System
Log Data Warehouse
Updating
Updating Definition
Specific Definition using update rules
Maintain Update Rules
Create
Specify Info Structure Name : Ex: S780
Specify Update Group
Ex: 1 – SIS : Sales Document, Delivery, Billing Document
Press Enter
Click on Rules for Key Figures
Specify Event : VA – Sales Order, Scheduling Agreements
Specify Update Type : A – Cumulative Update
B – Data Transfer Only
C – Counter
Source Table : MCVBAK
Source Field Name : NETWR
Table for Data : MCVBAK
Data field : AUDAT – Doc Date
Click on Copy
Click on Check Icon
Click on Generate
Click on Activate Updating
Choose our Info Structure Ex: S780
Double Click
Check Period Split Day
Select Synchronous Updating
Save it and Exit.
Updating Control:
Path is same.
Activate Update
Choose Sales and Distribution
Choose out Info Structure. Ex: S780
Check the Parameters. Save it and Exit.
Statistics Groups:
Maintain Statistics Groups for Customers.
Ex: 1 – Relevant for Statistics
Maintain Statistics Groups for Materials
Ex: 1 – Relevant for Statistics
Maintain Statistics Groups for Sales Documents.
Ex: 1 – Order, Debit Memo
Assign Statistics Groups for each Sales Document Type
Choose Sales Document “OR” and Assign Statistics Group as a 1
Assign Statistics Groups for each Sales Document Item Type
Ex: Choose Item CatExory “TAN” and Assign Statistics Group for “1”.


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Assign Statistics Group for Each Delivery Type
Choose Delivery Document Type “LF”
Assign Statistics Group for Each Delivery Item Type
Choose Item CatExory “DLN” and Assign “1”.
Determine Billing Document Type “F2” and check it.
Update Groups
Assign Update Group at Item Level
Go to New Entries
Specify your Sales Area
Assign Customer Statistics Group “1 – Relevant for Statistics”
Material Statistics Group : 1 – Relevant for Statistics
Statistics Group Sales Document : 1 – Order, Debit Memo
Statistics Group Document Item : 1 – Order, Debit Memo
Update Group : 1
Save it and Go back
Assign Update Group at Header Level
Go to New Entries
Specify Customer Statistics Group 1 – Relevant for Statistics
Statistics Group Sales Document : 1 – Order, Debit Memo
Update Group – 1
Save it.
Go to SAP Easy Access Screen
Go to System
Use Profile
Own Data
Go to Parameter Step
Specify Parameter MCL
Specify Value X
Save it.
Save it.
Go to Logistics
Sales Information System
Standard Analysis
MCSI – User Defines Analysis.
Choose our Info Structure (Ex: S780)
Click on Execute
Click on Switch Drilldown and the Values.


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196

STOCK TRANSFER ORDER (STO)
Stock can be transferred with in the Organization as a Replenishment Deliveries.
“Monitory” objective is not existed in this kind of deliveries.
It is a one of the important intExration area between SD and MM (Inventory
Management and Purchasing).
Stock Transfer can occur
a. Company Code to company code (Between 2 Plants)
b. Plant To Plant (Within Company Code)
c. Storage Location To Storage Location within one plant.
Stock Transfer can be carried out by following 3 methods.
1. One Step Procedure: Stock updation takes place between 2 destinations at a
time automatically by using single movement type.
2.Two Step Procedure : Stock Updation should be takes place manually at
supplying plant and receiving plant by using 2 different movement types.
Stock Transport Order: By using stock transport order stock can be transferred with
or without SD – Delivery and Billing Document.
In Stock Transport Order One Step or Two Step Procedure is available.
For every movement Material Document is going to be generated.
For every movement accounting documents also are going to be generated if
supplying and receiving plant assign to two different valuation areas.
Stock Transfer between Two storage locations with in one plant.
One Step:
Data:
Plant 1000
Storage Locations : 0001 (Supplying Storage Location)
0002 (Receiving Storage Location)
Configuration Settings: Go to MM01 and create Material Master under 1000 / 10/
00 Sales Area, Storage Location 0001 and extend it to Storage Location 0002. Save
it.
Go to MB1C and initialize the stock under 1000 /0001.

Replenishing the stock by using one step procedure
Movement Type 311
Go to MB1B and
Specify Movement Type 311 – Transfer Posting Storage Location (One Step)
Specify Storage Location and Plant (Supplying)
Specify Receiving Storage Location
Specify Material with Qty
Press Enter and Save it.

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Go to MMBE and check the stock overview in both supplying and receiving storage
location.
Two Step:
Date:
Plant 1000
Supplying Storage Location 0001
Receiving Storage Location 0002
Removal from Supplying Storage Location
Movement Type 313 – Transfer Posting Storage Location to Storage Location
remove from Storage.
Go to MB1B
Specify supplying Plant and Storage Locations
Specify Receiving Storage Location
Specify Material and Qty
Go to MMBE and check the stock balance in supplying storage location.
Go to MMBE of Receiving Storage Location – Stock In Transfer.
Go to MB1B and receive the stock in transfer into receiving storage location (0002)
By specifying Movement Type 315 – Transfer Posting Storage Location to Storage
Location – Place in Storage.
Specify Plant and Receiving Storage Location
Go to MMBE of Receiving Storage Location and Stock in Unrestricted usage.

Stock Transfer between 2 Plants with in One Company Code.
Data:
Supplying Plant 1000 / 0001 Storage Location
Receiving Plant 1100 / 0001 Storage Location
Go to MM01 and Create Material Master by using 1000 / 10 / 00 – 0001 and extend
it to 1100 – 0001 storage location.

One Step Procedure: Go to MB1B
Specify Movement Type 301 – Transfer Posting Plant To Plant (One Step)
Specify Supplying Plant and Storage Location
Specify Receiving Plant and Storage Location
Go to MMBE of Receiving Plant and Storage Location and Check Stock Overview.


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198

Two Step Procedure: In Two Step Procedure
a. Stock Removal from Supplying Plant (1000)
Go to MB1B
Specify Movement Type 303 – Transfer Posting Plant to Plant – Remove from
Storage.
Specify supplying plant and storage location.
Press Enter.
Save it.
Go to MMBE of Supplying Plant and check stock balance.
Go to MMBE of Receiving Plant and Storage Location and Check Stock In
Transfer.
Go to MB1B to receive the stock from in Transfer to Receiving Plant and Storage
Location.
Specify Movement Type : 305 – Transfer Posting Plant To Plant – Place in Storage.
Save it.
Go to MMBE and check the stock overview in receiving Plant and Storage Location
in un-restricted usage.
Stock Transfer between Two Plants under One Company Code by using Stock
Transport Order without SD involvement.
Data: STO Document Type – UB
Supplying Plant – 1000
Receiving Plant – 1100
Customization Settings:
Create Material Master under One Plant and extend it to other Plant.
Go to MB1C and initialize the stock under supplying plant.
Process Flow:
1. Create STO in Receiving Plant (1100) by using Document Type “UB” in ME21N.
2. Carryout PGI in Supplying Plant (1000) by using Movement Type - 351
3. Carryout PGR in Receiving Plant (1100) by using Movement Type – 101
Activities:
Go to ME21N
Choose Stock Transport Order
Specify Supplying Plant (1000)
Specify Purchasing Organization (1000)
Purchasing Group (000)
Company Code (1000)
Specify the Material and Qty
Specify the Receiving Plant and Storage Location
Press Enter, save it and note down the STO Number.

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199

Go to MB1B
Specify Movement Type 351 – Transfer Posting to Stock in Transit from Unrestricted
Usage.
Specify supplying Plant (1000)
Storage Location (0001)
Press Enter
Specify the Purchase Order Number
Press Enter
Go to MIGO to receive the Goods with reference to Purchase Order.
Check Item OK
Click on Post and Check the Stock Overview.
Stock Transport Order with SD Delivery (One Step – Intra) with in Company Code.

Data:
Plant 1000 – Issuing Plant
Plant 1100 – Receiving Plant

Create Customer Master by using XD01 Transaction Code under 1000 / 10 / 00
(Plant 1000). Ex: 700031
Create Vendor Master by using XK01 Transaction Code under 1000 / 10 / 00 and
make sure that in purchasing data section, Extras, Add Purchasing Data and
Specify Plant (Supplying)
Go to IMG
MM
Purchasing
Purchase Order
Set Up STO
Define Shipping Data for Plants
Choose Supplying Plant (1000)
Maintain Sales Area
Save it and Exit.
Choose Receiving Plant (1100) and Assign Customer Number.
Maintain Delivery Type (NK) and Checking Rule (RP)
For only supplying Plant 1000 with Document Type “UB”.
Path is same up to set up STO
Assigning Delivery Type and Checking Rule
Choose Document Type “UB”
Assign Supplying Plant (1000)
Assign Delivery Type (NL)
Assign Checking Rule (RP) and Save it.
Decide One Step Procedure or Two Steps Procedure.
a. One Step:
Assign Supplying Plant
Receiving Plant
Check Document Type and Checking Rule (If it is activated then it is a One Step
Procedure).


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200

If it is de-activated then it is a Two Step Procedure.
Path is same up to Set Up STO
Assign Document Type, One Step Procedure under Delivery Tolerance.
Go to New Entries
Specify Supplying Plant (1000)
Specify Receiving Plant (1100)
Specify Document Type “UB” and check One Step and save it.
Go to OVL2 and Assign Shipping Conditions, Loading Group, Delivery Plant to
Shipping Point and Manual Proposal Shipping Point.
Ex: Shipping Condition 10
Loading Group
0003
Plant
1000
Proposed Shipping Point 1000
Manual Shipping Point 1000

1100
1100
1100

Go to ME21N and raise the Purchase Order.
Specify the Supplying Plant (1000)
Specify the Purchase Organization, Purchase Group and Company Code.
Specify the Material, Qty, Receiving Plant and Storage Location. Save it and note
down the STO Number.
Go to VL10B – Replenishment Delivery
Specify Supplying Shipping Point (1000)
Go to Purchase Order Tab and Specify P O Number
Specify supplying Plant (1000)
Click on Execute
Select Condition Line Item and Click on Create Delivery in Background Click on
“Next”.
Select Line Item and Click on Details Tab and note down Sales Document Number.
Go to VL02N
Specify the Document Number
Go to Picking Tab
Go to Subsequent Functions
Create Stock Transfer Order (LT03)
Go to VL02N and Check the Picking Qty
Go to Goods Movement Data Tab and note down the Movement Type Number (647
– Transfer to Stock in Transit)
(641 – Transfer to Stock in Transit for Two Step)
Carry out PGI
Go to MMBE and Check the Stock Balance in Supplying and Receiving Plant.


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201

For Two Step Process Flow
ME21N

VL10B

VL02N

MIGO

STO – With SD Del (One Step) – Inter
Data:
Issuing Plant (1000)
Receiving Plant (2200)
Step 1:
Create Customer Master XD01 under 1000 / 10 / 00 (Plant – 1000)
Create Vendor by using XK01 under 2200 / 10 / 00 (Plant 1000)
Step 2 :
Go to IMG
Purchasing
Purchase Order
Set up
STO
Define Shipping Data for Plants
Maintain Sales Area to Supplying
Plant (1000) and Assign Customer Number to Receiving Plant (2200).
Step 3:
Maintain Delivery Type (NLCC)
Checking Rule (B – SD Delivery) for only supplying Plant (1000) to Document
Type“NB” Standard Purchase Order.
Path same up to Set Up STO
Assign Delivery Type and Checking Rule.
Go to New Entries
Choose Document Type “NB”
Supplying Plant (1000)
Delivery Document Type (NLCC)
Checking Rule (B)
Check Carry out shipment scheduling
Save it.
Decide One Step or Two Step
A. One Step:
Assign Supplying Plant (1000) Receiving Plant (2200)
Document Type NB and Checking Rule (B)
Path is same up to Set Up STO
Go to Assign Document Type, One Step Procedure under Delivery Tolerance.
Choose Supplying Plant (1000)
Receiving Plant (2200)
Document Type “NB”
Check One Step
Save it.
Go to OVL2 and Define Shipping Point.
Go to V/08 and Define Pricing Procedure (ZIV002) with Condition Type “ZIVU” like
Inter Company.


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202

Go to OVKK and Assign Pricing Procedure “ZIV002” to supplying Plant Sales Area
with Document Pricing Procedure “N” – IB Stock Transfer condition Type ZIVU.
Go to VK11 and maintain condition records for ZIVU.
Specifying Supplying Plant, Customer Number and Price.
Go to ME21N and raise standard Purchase Order
Specify Vendor Number
Specify Purchasing Organization (2200)
Specify Company Code (2200)
Specify the Material Number and Qty
Save it and note down the P O Number.
Go to V4OB – RPL Delivery
Specify Shipping Point (1000)
Go to Purchase Order Tab and specify Purchasing Document and Supplying Plant.
Click on Execute
Select Line Item and Click on background
Click on “Next” and note down Delivery Document Number
Go to VL02N
Go to Subsequent Functions
Crate Transfer Order (LT03) and note down the Transfer Order.
Go to VL02N and Carryout PGI
Go to VL02N and note down Movement Type 645 – Transfer to Cross Company.
For Two Steps (643 – Transfer to Cross Company)
Go to MMBE and check the Stock Balance.
Go to VF01
Document Type ZIVU – IB Stock Transfer.
Save it.
Process Flow for Two Step :
ME21N
VL10B
VL02N
Go to VF01 (NLCC)


MIGO

MIRO

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SAP-SD

203

Batch Management
In Business especially Pharmaceutical and FMCG Materials are processed in
Batches. In some Industries Materials should be processed only in Batches as a
statutory requirement. By using Batch Management Concept defectives can be
identified and LIFO and FIFO methods can be implemented. Materials usually
processed from Production to Sales by Batches only. SAP uses condition technique
to determine Batch Management concept as a intExration with Production, Inventory
Management and Sales and Distribution.
Configuration Settings: Create Material Master and make sure that checking group
of Availability Check should be “CH – Batches” and check Batch Management in
Sales:General / Plant Data.
Activating Batch: Batch can be activated at 3 levels.
a. Client Level
b. Plant Level
c. Material Level
If it is client level then Batch Data is specific to client.
If it is Plant Level then Batch Data is specific to Plant.
If it is Material Level then Batch Data is specific to Material Level only. That means
when the Material moving to other plant then Batch Data should be maintain
separately at Plant Level. Usually it is at Material Level.
Path:
IMG
Logistics - General
Batch Management
Specify Batch Level and Activates Status Management
Batch Level
Check Batch Unique at Material Level
Maintain Internal Batch Number Assignment:
Path: IMG
Batch Management
Batch Number Assignment
Activate Internal Batch Number Assignment
Activate Batch Number Assignment
Check Automatic Batch Number Assignment Active
Maintain Internal Batch Number Assignment Range:
Click on Change Icon
Click on Number Ranges
Click on Change Intervals

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204

Click on Insert Intervals
Define Number Range with Internal Option.
Create Condition Tables:
Path is same up to Batch Management.
Then Batch Determination and Batch
Condition Tables
Define S&D
Condition Tables
Create Condition Table for Batch Determination (SD) and
Create Condition Table (Ex: 002 – Customer (KUNNR) / Material (MATNR)
Define S & D Access Sequence:
Path is same.
Define Access Sequence (Ex: SD01 – KUNNR / MATNR) and Assign Condition
Table (002).
Define S & D StratExy Type: Ex: SD04 – KUNNR / MATNR (Customer / Material)
and Assign Access Sequence (SD01) and Assign Class (ZCLASS)
Define Class (Transaction Code CL01) with Class Type 023 – Batches.
Assign Sort Sequence (ZSORT) by using Transaction Code CU70 – Create
Save it and Exit.
Define Batch Search Procedure: Define S & D search Procedure and define S & D
Batch search procedure (Ex: SD0001) and Assign stratExy type (SD04).
Allocate SD Search Procedure / Activate Check: Go to New Entries and Assign
Batch Determination search procedure to the combination of Sales Area and
Document Type and check Batch also. Save it and Exit.
Activate Automatic Batch Determination in SD:
a. Automatic Batch Determination for Sales Order Item:
Choose Item CatExory “TAN” and check Automatic Batch Determination.
b. Activate Automatic Batch Determination for Delivery Item CatExory:
Choose Item CatExory “DLN” and check Automatic Batch Determination.
Maintain Condition Records for Condition Table (VCH1 – Create)
Path: Logistics
Central Functions
Batch Management
Batch Determination
Batch Search StratExy
For S & D
VCH1 – Create
And maintain Condition Records for SD04 – KUNNR / MATNR
Save it.


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205

Create Batch (MSCIN):
Specify Material
Batch (Internal Assignment)
Plant
Storage Location
Maintain Data in
Basic Data 1
Production Date : Mfg Date
Shelf Life Expiry Date : Expiry Date
Available From (MFG Date)
Next Inspection Date:
Check Un-Restricted Use:
Basic Data 2
Maintain Short Text
Assign Class :
Repeat the same process for another Batch with different dates.
Go to MB1C and initialize the stock by specifying Batch Number.
Go to VA01 and raise the Sales Order and Check the Batch Number at line item.


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206

BILL OF MATERIAL (BOM)
Structured or Recipes are called as a BOM Items. BOM has a structured with
Header and Sub-Items. BOM simplifies the Production Process. Materials are
manufactured from Production to Sales as a single level as well as multilevel BOMs.
Inventory Management and Pricing can be carried out at a Header Level or Sub-Item
level. If it is at Header Level then system treats Header Item as a Main Item and
Sub-Items as a Text Items (No Inventory and No Billing).
If Inventory and Pricing carried out at sub-item level then system carries out
Inventory and Pricing at Sub-Item level then Head Item is a text item and sub-items
are Main Items.
When Materials are completely assembles that is called as a Header Level BOM.
Ex:Computer.
When components are manufactured then that is called as a Item Level BOM.
SAP recognize Header Level or Item Level BOM depending upon the General Item
CatExory Group. General Item CatExory Group (Only at Header Material) that is
General Item Group

Header

Sub-Item

TAQ
TAP

TAE
TAN

ERLA
LUMF

Go to MM01 and Create Material Master by specifying General Item CatExory Group
for Header Item “ERLA / LUMF” and for sub-item as a “NORM”.
Go to MB1C and initialize the stock for both items.
Create BOM (CS01)
Path: Logistics
Master Data
Products
BOM
BOM
Material BOM
CS01 – Create
Specifying Header Material, Plant and BOM usage – 5 (Sales and Distribution)
Press Enter and Specify Sub-Components with Qty
Save it.
Go to VA01 and raise the Sales Order by specifying Header Material and Check
BOM Explosion.


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FAQS
1.
If Customer Payer accepts invoices and invoice list how do you configure it?
ANS:
2.

If ship to party wants to receive shipment on particular day. Ex: Saturday. How
do you configure it?

ANS: By defining Factory Calendar.
3.

Can you create Customer Material info records from customer master?

Ans: Yes
PATH: XD02 or VD02 Sales Area Data Session
Environment
Then, Customer Material information
4.

Can you block customer from customer master?

ANS: Yes
PATH: DX02 or VD02 Sales Area section, Extras, Blocking Data, specify the
particular area.
5.

How system determines Item Category for a line item in the Sales Order?

ANS: System determines item category for a line item in the Sales Order by taking 4
factors into consideration.
e) Sales document type (that end users enter). Ex: TA/OR +
f) Item Category Group (from its Material Master). Ex: NORM +
g) Usage of the Material (of the Material). Ex: NIL +
h) Higher level item category (of the line item) Ex: NIL
= default item category (of line item). Ex: TAN Standard item.
6.

Is it possible to assign line item numbers manually during Sales Order
Processing?

ANS: Yes
7.

What are the control parameters of Sales Document ?

ANS: Header Level Category, Item Level Category and Schedule Line Category.


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SAP-SD

8.

208

What is Exclusive in Access Sequence?

ANS: Exclusive indicator restricts the system to read condition record for particular
condition table if it finds condition records for one condition table. That means it
stops search procedure with one condition table it finds condition records.
Select Access Sequence and click on Fields Control button and press enter.
9.

If Credit Management to be configured for Division Specific? How do you
configure it?

10.

ANS: Assign Credit Control Area to Sales Area. Sales Area is a combination of
Sales Organization, Distribution Channel and Division.

11.

Can we Create Document Flow Records only for Inquiry, Quotation and Sales
Order?

ANS: Yes. It is relevant for Contract Business Cinereous. We have to Assign Value
as a 2.
12. Can we carry out New Pricing during Sales Document Processing?
13. What are the Two fields that are transferred to FI/CO module after saving
Invoice?
A. Reference Number
B. Allocation Number
14.

How System Determines Plant for a line item in the Sales Order?

ANS: System follows search criteria for determine plant for a line item in the Sales
Order.
d) System first checks customer material info records. If Plant has been
maintained, then it will take from Customer Material Info records or else it will
go to “b”
e) Customer Master Ship to Party or else it will go to “c”
f) Materials Master or else Plant should be determined manually during Sales
Order Processing.
15. Can we carry out New Pricing during Sales Document Processing?


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SAP-SD

209

16. If Credit Management to be configured for Division Specific? How do you
configure it?
ANS: Assign Credit Control Area to Sales Area. Sales Area is a combination of Sales
Organization, Distribution Channel and Division.
Path:
IMG
Assignment
Assign Sales Area to Credit Control Area
Choose our Sales Area and Assign our Credit Control Area.
17.

FAQ: What is the difference between Proforma Invoice and Standard Invoice?
OR
How you will differentiate there two?
Ans: Proforma Invoice doesn’t have Account Determination Procedure as it need not
to transfer Billing information from SD to FI.

Success Follows Hard Work
Hard Work Never Fails.
Smart work Every Pays.
- Murthy. B-


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