sap-sd-configuration-guide.pdf

CONFIG. MANUAL - SD Page 1of 87 VIL
SALES & DISTRIBUTION
CONFIGURATION DOCUMENT

TABLE OF CONTENTS
1.Purpose............................................................................................ 4
2.Configuration..................................................................................... 4
2.1 Enterprise Structure .......................................................................... 5
2.1.1 Define Sales Organization.................................................................. 5
2.1.2 Define Distribution Channel ............................................................... 7
2.1.3 Define Division .............................................................................. 8
2.1.4 Maintain sales office........................................................................ 8
2.1.5 Define shipping point....................................................................... 9
2.1.6 Assign sales organization to company code ............................................10
2.1.7 Assign distribution channel to sales organization .....................................11
2.1.9 Set up sales area ...........................................................................13
2.1.10 Assign sales office to sales area ........................................................14
2.1.11 Assign sales organization - distribution channel - plant ............................15
2.1.12 Assign shipping point to plant ..........................................................16
2.2 Basic Functions ...............................................................................17
2.2.1 Define Common Distribution Channels..................................................17
2.2.2 Define Common Divisions .................................................................17
2.2.3 Define Condition Table....................................................................18
2.2.4 Define Access Sequence...................................................................19
2.2.5 Define Condition Types ...................................................................21
2.2.6 Define And Assign Pricing Procedures, Maintain pricing procedures ...............24
2.2.7 Define And Assign Pricing Procedures, Pricing Procedure Determination. ........27
2.2.8 Define Tax Determination Rules .........................................................28
2.2.9 Define Tax Determination Rules .........................................................29
2.2.10 Define Tax Relevancy Of Master Records .............................................30
2.2.11 Maintain Sales Tax Identification Number Determination ..........................32
2.2.12 Output Determination ...................................................................32
2.2.13 Partner Determination...................................................................33
2.2.14 Revenue Account Determination .......................................................36
2.3 Sales............................................................................................42
2.3.1 Sales Document Header...................................................................42
2.3.2 Define Number Ranges For Sales Documents ..........................................45
2.3.3 Define Order Reasons......................................................................46
2.3.4 Assign Sales Area To Sales Document Types ...........................................47
2.3.5 Sales Document Item ......................................................................49
2.3.6 Define Item Category Groups ............................................................52
2.3.7 Assign Item Categories ....................................................................53
2.3.8 Define Reasons For Rejection ............................................................56
2.3.9 Schedule Lines..............................................................................57
2.3.10 Maintain Copy Control for Sales Documents ..........................................58
2.4 Shipping........................................................................................62
2.4.1 Define Shipping Conditions ...............................................................62
2.4.2 Assign Shipping Points .....................................................................62
2.4.3 Define Delivery Types .....................................................................63

2.4.4 Define Item Categories for Deliveries...................................................65
2.4.5 Define Number Ranges for Deliveries ...................................................67
2.4.6 Copying Control ............................................................................68
2.4.7 Determine Picking Location ..............................................................70
2.5 Billing ..........................................................................................71
2.5.1 Define Billing Types........................................................................71
2.5.2 Define Number Range For Billing Documents ..........................................73
2.5.3 Maintain Copying Control For Billing Documents ......................................74
2.6 Country India Version (CIN) – SD............................................................79
2.6.1 Maintain Excise Groups....................................................................79
2.6.2 Maintain Series Groups ....................................................................80
2.6.3 Select Tax Calculation Procedure .......................................................81
2.6.4 Maintain Excise Defaults ..................................................................81
2.6.5 Classify Condition Types ..................................................................83
2.6.6 Outgoing Excise Invoices ..................................................................85
2.6.7 Maintain Default Excise Groups and Series Groups....................................85
3 Authors and Participants.......................................................................86

1.Purpose
The purpose of this document is to provide important configuration details of the SD
module to enable the application system administrator(s) / authorized users in
maintaining the system. It is recommended that not more than 2 key users be
identified as the application system administrators. It is also recommended that this
document be a controlled copy in the hands of the target audience mentioned below.
The application system administrators, who will be maintaining the Sales &
Distribution function, intend this document for use. It may be noted that the
document is consistent with the system settings on the date of document (xx.xx.xxxx)
It is the responsibility of the application system administrators to keep this document
updated and consistent with any further configuration done.
2.Configuration
The S&D Configuration document contains the configuration details of the module. As
part of business process mapping following configuration has been carried out in this
module.
• Enterprise Structure
• Basic Functions
• Sales
• Shipping
• Billing
• CIN

2.1 Enterprise Structure
2.1.1 Define Sales Organization
The VIL Sales organizations have been defined in this section. A sales organization is
the highest summation level (after the organizational unit Client) for sales statistics
with their own statistics currency.
For more details of S&D Org.structure refer VIL Organization Structure document.
Configuration Path: SAP Implementation Guide  Enterprise Structure-> Define ->
Sales and Distribution -> Define, copy, delete, check sales organization (T Code –
EC04)

2.1.2 Define Distribution Channel
In this IMG activity, the distribution channel for VIL has been defined. Distribution
channel is one of the constituents in the sales area where the masters are maintained.
They represent the channel through which the goods are sold to the customer.
Sales and Distribution -> Define, copy, delete, check distribution channel (T Code –
EC05)

2.1.3 Define Division
The Division is one of the organizational units in Sales & Distribution and is also
required for business area account assignment for logistics transactions in Financial
Accounting. The Various Division of VIL has been defined as divisions.
For more details of S&D Org.structure refer VIL Organization Structure document
Logistics – General -> Define, copy, delete, check division
2.1.4 Maintain sales office
The sales offices will be assigned to the Sales area. One sales office can be assigned to
multiple sales areas.
In VIL sales office defined as a Project.
Sales and Distribution -> Maintain sales office (SPRO)

2.1.5 Define shipping point
This is the organization element where the execution of the order begins. For each
plant in VIL, one shipping point is used. For 4 Plants, 4 shipping points are defined.
This shipping point gets determined from the Plant, loading group of the material
master and the shipping condition in the customer master/sales document type.
Logistics Execution -> Define, copy, delete, check shipping point (EC07)

2.1.6 Assign sales organization to company code
The company structure is reproduced in the system by allocating the organizational
units in sales and distribution. The sales organizations defined for VIL are assigned to
the respective company codes. The sales organization can be assigned to only one
company code in SAP.
Configuration Path: SAP Implementation Guide  Enterprise Structure-> Assign ->
Sales and Distribution -> Assign sales organization to company code (SPRO)

2.1.7 Assign distribution channel to sales organization
In this step, you allocate the distribution channels to a sales organization. In this case,
as many distribution channels as desired can belong to a sales organization. In
addition, a distribution channel can be valid for several sales organizations.
Configuration Path: SAP Implementation Guide  Enterprise Structure->
Assignment -> Sales and Distribution -> Assign Distribution Channel to Sales
Organization. (T Code – SPRO)

2.1.8 Assign division to sales organization
In this step, you can allocate as many as divisions to a sales organization. Any one
division can belong to several sales organizations. The product/Project is assigned to
only one division.
Assignment -> Sales and Distribution -> Assign Distribution Channel to Sales
Organization. (T Code – SPRO)

2.1.9 Set up sales area
In this step, the sales area is set up. The sales area is the final combination and all the
Material Masters and the Customer Masters are going to be maintained at this level. It
will be created with the combination of sales organization, distribution channel and
division.
Assignment -> Sales and Distribution -> Setup Sales Area (T Code – SPRO)

2.1.10 Assign sales office to sales area
In this step, Sales office will be assigned to Sales Area. The sales area is the final
combination and all the Material Masters and the Customer Masters are going to be
maintained at this level. It will be created with the combination of sales organization,
distribution channel and division.
Assignment -> Sales and Distribution -> Assign Sales Office to Sales Area (T Code –
SPRO)

2.1.11 Assign sales organization - distribution channel - plant
Use this step to assign any number of plants to a combination of sales organization and
distribution channel. A plant can be assigned more than once.
Assignment -> Sales and Distribution -> Assign Sales Organization – Distribution
Channel – Plant (T Code – SPRO)

2.1.12 Assign shipping point to plant
A Plant can have multiple shipping points based on different products or dispatching
locations, which are maintained independently. However in VIL scenarios, all plants
have individual shipping points the coding structure for the shipping point is the same
as the one used for plant
Assignment -> Logistics Execution -> Assign Shipping Point to Plant s (T Code OVXC)

2.2 Basic Functions
2.2.1 Define Common Distribution Channels
This is used to define distribution channels which have common master data. The
allocation is valid within a sales organization.
Configuration Path: SAP Implementation Guide  Sales and Distribution -> Master
Data-> Define Common Distribution Channels (T Code – VOR1)
2.2.2 Define Common Divisions
This is used to define the divisions that common master data should apply to. The
definition is valid within each sales organization.
Configuration Path: SAP Implementation Guide  Sales and Distribution -> Master
Data-> Define Common Distribution Channels (T Code – VOR2)

2.2.3 Define Condition Table
In a condition table, you define the combination of fields for which you can create
condition records.
Configuration Path: SAP Implementation Guide  Sales and Distribution -> Basic
Functions -> Pricing-> Pricing Control-> Define Condition Tables (T Code – V/03)

2.2.4 Define Access Sequence
The pricing applicable to the order flows in automatically; the access sequence
determines which price or discounts are applicable to the order. Access sequence is
defined in this IMG step. The access sequence is a search strategy, which the SAP
System uses to search for condition records valid for a condition type.
Functions -> Pricing-> Pricing Control-> Define Condition Tables (T Code – V/07)

2.2.5 Define Condition Types
The Procedure of condition type is that it is an essential part of the pricing procedure
and contains values of prices, taxes, and duties, discounts that are used in the pricing.
Standard tax condition types have been used as it is as they are used in the tax
calculation procedure as well.
Functions -> Pricing-> Pricing Control-> Define Condition Type (T Code – V/06)

2.2.6 Define And Assign Pricing Procedures, Maintain pricing procedures
In the pricing procedure, you define which condition types should be taken into
account and in which sequence. During pricing, the SAP System automatically
determines which pricing procedure is valid for a business transaction and it takes the
condition types contained in it into account one after the other. Pricing procedure will
be determined by the combination
Sales organization, Distribution Channel, Division, Customer Pricing procedure &
Document Pricing Procedure
Functions -> Pricing-> Pricing Control-> Maintain Pricing Procedure (T Code – V/08)

ZRABIL: Client R A Billing Procedure
Material Sale Pricing Procedure

2.2.7 Define And Assign Pricing Procedures, Pricing Procedure
Determination.
Pricing procedure will be determined by the combination
Sales organization, Distribution Channel, Division, Customer Pricing procedure &
Document Pricing Procedure
Functions -> Pricing-> Pricing Control-> Define and Assign Pricing Procedures
(T Code – OVKK)

2.2.8 Define Tax Determination Rules
Define the defaults for tax calculation. In pricing, the SAP System automatically
calculates the taxes. The settings for tax determination should agree with those in
Financial Accounting (FI module).You have to define the valid tax types and the rules
of tax calculation for each country with which you have business contacts. You have to
allocate delivering plants for tax calculation. You have to define tax relevancy for
each tax type for customers and materials.
Configuration Path: SAP Implementation Guide  Sales and Distribution -> Sales
and Distribution -> Basic Functions -> Taxes-> Define Tax Determination Rule (T
Code – OVK1)

2.2.9 Define Tax Determination Rules
and Distribution -> Basic Functions -> Taxes-> Assign Delivering Plants For Tax
Determination (T Code – OX10)

2.2.10 Define Tax Relevancy Of Master Records
and Distribution -> Basic Functions -> Taxes-> Define Tax Relevancy Of Master
Records -> Customer Taxes (T Code – OVK3)

and Distribution -> Basic Functions -> Taxes-> Define Tax Relevancy Of Master
Records -> Material Taxes (T Code – OVK4)

2.2.11 Maintain Sales Tax Identification Number Determination
and Distribution -> Basic Functions -> Taxes-> Maintain Sales Tax Identification
Number Determination (T Code – SPRO)
2.2.12 Output Determination
Output determination in sales and distribution allows you to control proposal using
assignments and groupings in such a way that the system selects the output allowed in
each sales transaction and carries out output processing according to predefined
criteria.
Functions -> Output Determination Using the Condition Technique, Maintain
Output Types (T Code – V/30)

Functions -> Assign Output Determination Procedure. (T Code – V/43)
2.2.13 Partner Determination
When creating a customer master record, the SAP System proposes the allowed
partner functions to be maintained. According to the rules defined here, the partners
are adopted from the customer master records of the sold-to parties into the sales and
distribution documents.

Functions -> Partner Determination-> Set Up Partner Determination for Customer
Master (T Code – SPRO)

2.2.14 Revenue Account Determination
In this section the parameters for the account determination have been set. For the
Procedure of account determination we have used two combinations based on the
number of GL accounts .Revenue Account Determination based on the below
combination
G/L Account Determination is Combination of Application, Condition Type,
Chart of Account ,Sales Organization, Account Assignment group for customer,
Account Assignment group for material, Account Key, G/L Account.
Functions -> Account Assignment/Costing-> Revenue Account Determination ->
Define And Assign Account Keys -> Define Account Key (T Code – SPRO)

Functions -> Account Assignment/Costing-> Revenue Account Determination ->
Assign G/L Accounts (T Code – VKOA)

2.3 Sales
The sales document types represent the different business transactions in Sales and
perform a central controlling function for the entire sales order process. The
definition and configuration of sales document types can be carried out by copying
from similar functional order type and make the suitable changes in the parameters.
2.3.1 Sales Document Header
Configuration Path: SAP Implementation Guide  Sales and Distribution -> Sales ->
Sales Documents-> Define Sales Document Types -> (T Code – VOV8)

2.3.2 Define Number Ranges For Sales Documents
It is used to define the number intervals of the number ranges for sales documents and
groups of sales documents. When creating a sales document or a group of sales
documents, a unique number is assigned this identifies the sales document or the
group. The number is derived from the number range provided for the document type
or the group.
Sales Documents-> Define Number Ranges For Sales Documents-> (T Code – VN01)

2.3.3 Define Order Reasons
Order reasons which led to an inquiry, quotation or order. When processing a sales
document, you can specify the order reason in the overview at header level. It then
applies to all the items.
Sales Documents Header-> Define Order Reasons-> (T Code – SPRO)

2.3.4 Assign Sales Area To Sales Document Types
In this allocate the allowed order types to each sales area group. system do not need
to make any entries at all if all the sales order types are allowed for each of your sales
areas.
If you wish to check allowed sales document types, you must set up common sales
areas. This means you must define common sales organizations, common distribution
channels and common divisions. If, for example, you have define common divisions,
then you must also define common distribution channels and sales organizations.
Sales Documents Header-> Assign Sales Area To Sales Document Types-> (T Code –
SPRO)

2.3.5 Sales Document Item
Item categories together with the sales document types represent the different
business transactions in the SAP system. The item categories contained in the standard
SAP R/3 System, together with sales document types; represent the most common
business transactions. With item category we can have the control over the items in a
document such as whether availability check needs to be carried out or billing
relevance, pricing relevance.
Sales Document Item-> Define Item Categories-> (T Code – VOV7)

2.3.6 Define Item Category Groups
Using the item category group, you group together different material types for item
category determination from the SD view. For every material type, you can define a
default item category group which is proposed by the SAP System when you create a
material master record. In the sales document, the system determines the item
category from the item category group of the material and from the sales document
type and proposes this item category in the document.
Sales Document Item-> Define Item Category Groups-> (T Code – SPRO)

2.3.7 Assign Item Categories
In this menu option, you can specify which item categories the system proposes
during
document processing for each sales document type and item category group. At the
same
time, you can specify additional item categories with which the system default can
be
overwritten. There is a maximum of three possible alternative item categories.
The system default and the allowed alternatives are always determined from the
sales
document type and one or two further criteria. The system default depends on the
following
criteria:
 Sales document type
 Item category group
 Item category of the higher-level item
 Item category usage
The SAP System automatically copies the item category determined for a sales
document item
to the delivery. These default values can be overwritten in the assignment to
ensure that the

require item category is defaulted at the order level.
Sales Document Item-> Assign Item Categories-> (T Code – SPRO)

2.3.8 Define Reasons For Rejection
This is used to define possible reasons for rejection. It describes why an item in a sales
document (for example, in a quotation) was rejected.
Sales Document Item-> Define Reasons For Rejection-> (T Code – SPRO)

2.3.9 Schedule Lines
Different schedule line categories are permitted according to the sales document type
and item category With Schedule line category we can have the control over the
Availability check & requirements & whether it is relevant for delivery.
Configuration Path: SAP Implementation Guide  Sales and Distribution ->
Schedule Lines -> Assign Schedule Line Categories (T Code – VOV5)

2.3.10 Maintain Copy Control for Sales Documents
In this menu option, you define control data for the document flow of sales
documents.
You can specify for a particular sales document type, which document type is to be
assigned to copied reference documents, and which item categories or schedule line
categories are to be copied.
You must also make specifications for copying requirements and data transfer, as well
as quantity and value updates in document flow. This must be done for each copying
procedure at header, item and, if necessary, schedule line level on a detail screen.
Note:
If you define new sales document types, item categories or schedule line categories by
copying existing ones, the SAP system automatically copies all specifications for the
document flow. You may want to check the copy controls for newly created sales
document types, item categories or schedule line categories.
Maintain Copy Control for Sales Documents-> Copying Control: Sales Document to
Sales Document (T Code – VTAA)

Maintain Copy Control for Sales Documents-> Copying Control: Billing Document to
Sales Document (T Code – VTAF)

2.4 Shipping
2.4.1 Define Shipping Conditions
Shipping conditions are defined in this step. They are used in the determination of the
shipping point.
Configuration Path: SAP Implementation Guide  Logistics Execution -> Shipping -
> Shipping Point and Goods Receiving Point Determination-> Define Shipping
Conditions-> (T Code – SPRO)
2.4.2 Assign Shipping Points
For each item, the SAP System determines the shipping point when processing a sales
document. The shipping point is determined for the combination of Plant, Loading
Group and the Shipping Condition from the customer master.
> Shipping Point and Goods Receiving Point Determination-> Assign Shipping Points-
> (T Code – SPRO)

2.4.3 Define Delivery Types
Various delivery types to be used for EIL are defined in this section. The delivery types
determine various controls such as the output type, Item requirements, text
determination etc
> Deliveries-> Define Delivery Types-> (T Code – OVLK)

2.4.4 Define Item Categories for Deliveries
It is used to define item categories for deliveries.
> Deliveries-> Define Item Categories for Deliveries-> (T Code – OVLP)

2.4.5 Define Number Ranges for Deliveries
It is used to define the number intervals of the number ranges for deliveries and
groups of deliveries. When creating a delivery or a group of deliveries, a unique
number is assigned this identifies the delivery or the group. The number is derived
from the number range provided for the document type or the group.
> Deliveries-> Define Number Ranges for Deliveries (T Code – VN01)

2.4.6 Copying Control
In this menu option, you define control data for the document flow of deliveries.
You can specify for a particular delivery type, which document type is to be assigned
to copied reference documents, and which item categories are to be copied.
You must also make specifications for copying requirements and data transfer, as well
as quantity and value updates in document flow. This must be done for each copying
procedure at header and item level on a detail screen.
Configuration Path: SAP Implementation Guide  Logistics Execution ->
Shipping -> Copying Control-> Specify Copy Control for Deliveries (T Code –
VTLA)

2.4.7 Determine Picking Location
The picking location can be determined automatically by the SAP System when
entering a delivery item if no storage location was specified in the corresponding item
of the sales document. You can still change the automatically determined picking
location manually in the delivery item.
> Picking-> Determine Picking Location-> Define Rules for Picking Location
Determination (T Code – SPRO)

2.5 Billing
2.5.1 Define Billing Types
Billing types that represent the different business transactions in billing,
Various Billing type are configured for VIL based on the business scenarios.
Configuration Path: SAP Implementation Guide  Sales and Distribution->
Billing-> Billing Document-> Define Billing Types (T Code – VOFA)

2.5.2 Define Number Range For Billing Documents
It is used to define the number intervals of the number ranges for billing documents
and groups of billing documents. When creating a billing document or a group of billing
documents, a unique number is assigned which identifies the billing document or the
group. The number is derived from the number range which is provided for the
document type or the group.

Configuration Path: SAP Implementation Guide  Sales and Distribution->
Billing-> Billing Document-> Define Number Range For Billing Documents (T
Code – VN01)
2.5.3 Maintain Copying Control For Billing Documents
It is used to define control data for the document flow of billing documents. We can
specify for a particular billing type which document type is to be assigned to copy
reference documents and which item categories are to be copied. We must also make
specifications for copying requirements and transferring data, as well as quantity and
value updates in document flow.
Configuration Path: SAP Implementation Guide  Sales and Distribution-> Billing->
Billing Document-> Maintain Copying Control For Billing Documents -> Copying
control: Sales document to billing document (T Code – VTFA)

Configuration Path: SAP Implementation Guide  Sales and Distribution-> Billing->
Billing Document-> Maintain Copying Control For Billing Documents -> Copying
control: Delivery document to billing document (T Code – VTFL)

2.6 Country India Version (CIN) – SD
2.6.1 Maintain Excise Groups
We can define excise groups here. For each excise group, you can also control how
various excise invoice transactions will work.
Configuration Path: SAP Implementation Guide Logistics General-> Tax on Goods
Movement-> India-> Basic Settings-> Maintain Excise Groups (T Code – SPRO)

2.6.2 Maintain Series Groups
It is used to define the different excise series groups within your company. Series
groups are allowed to maintain multiple number ranges for the outgoing excise
documents. Based on excise regulations and exemptions from the authorities you can
maintain multiple number series for outgoing documents. But each of these series has
to be declared to the excise authorities.
Configuration Path: SAP Implementation Guide ->Logistics General-> Tax on Goods
Movement-> India-> Basic Settings-> Maintain Series Groups (T Code – SPRO)

2.6.3 Select Tax Calculation Procedure
which tax procedure you want to use for determining excise duties and sales taxes on
input materials in India.
Movement-> India-> Basic Settings-> Determination of Excise Duty -> Select Tax
Calculation Procedure (T Code – SPRO)
2.6.4 Maintain Excise Defaults
Maintain Default Condition types for Tax Procedure.
Movement-> India-> Basic Settings-> Determination of Excise Duty -> Maintain
Excise Defaults (T Code – SPRO)

2.6.5 Classify Condition Types
Maintain Default Condition types for Tax Procedure.
Movement-> India-> Basic Settings-> Determination of Excise Duty -> Condition-
Based Excise Determination -> Classify Condition Types (T Code – SPRO)

2.6.6 Outgoing Excise Invoices
Specify which billing document types you use as a reference for CENVAT utilization
Configuration Path: SAP Implementation Guide ->Logistics General-> Tax on
Goods Movement-> India-> Business Transactions-> Outgoing Excise Invoices
-> Assign Billing Types to Delivery Types (T Code – SPRO)
2.6.7 Maintain Default Excise Groups and Series Groups
Specify which excise group and series group you want to appear in these fields by
default.
Movement-> India-> Business Transactions-> Outgoing Excise Invoices -> Maintain
Default Excise Groups and Series Groups (T Code – SPRO)

3 Authors and Participants
Name Position / Role
VIJAY INGLE SAP SD Consultant

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