Basic Rules in SD Configuration - ERP Operations - SCN Wiki

1 of 6

http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

Getting Started Newsletters Store

Welcome, Guest

Login

Register

Search the Community

ERP Operations /
/ Essential Configuration in SD

Basic Rules in SD Configuration

Added by Prashanth Goud, last edited by Jyoti Prakash on Nov 09, 2012

Purpose
This wiki page will discuss the basic rule / principle / information pertaining to SAP Sales and Distribution.

Organizational structure
Sales Organization
Its responsible for:
Distribution of goods and services
Negotiating Sales Conditions
Product Liability and rights of recourse
A sales organization is uniquely assigned to a company code
Master data's are separately maintained for a sales organization
All items in the Sales and Distribution document belong to a sales organization

Distribution Channel:
This is the means through which products and services reach the customer. So, its responsible for:
Defines responsibilities
Helps in achieve flexible pricing
Differentiate Sales statistics

Division:
A division is used to group products and services.
A division represents a product line.

Sales Area:
A Sales area is a combination of
Sales organization
Distribution Channel
Division
Each Sales and distribution document is assigned exactly to one sales area.
A sales area can belong to only one company code.

Plant and Storage Location:

A Plant is a location where stock is maintained
Plant and storage location are used by all logistic area of R/3 System
A Plant is uniquely assigned to a company code

Shipping point:
Shipping point is the highest level of organizational unit in shipping
Each outbound delivery is processed by one shipping point
Shipping points are assigned to a plant
More than one shipping point can be assigned to a plant

Process
Sales and Distribution is SAP begins with establishing customer relationship and ends with invoicing for the delivery of goods or service provided to the customer.
A standard process flow for sales transaction has the following flow:
1. Inquiry
2. Quotation
3. Sales Order

14/09/2014 09:54

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

2 of 6

http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

4. Delivery Document
5. Invoice
The customer order management cycle begins with pre-sales activities.

Sales Order
A standard sales order in SAP contains:
Customer & its partners details
Material information
Pricing conditions
Delivery dates and quantities
Shipping/Transportation information
Billing information
Accounting Interface information
Required Output Details
Document Status

Inventory sourcing at Sales Order & Delivery

It is handled through:
Availability check

Shipping
SAP supports following shipping process:
Outbound delivery creation
Picking
Packing
Post Goods Issue

Billing
SAP supports following billing process:
Creating invoices for products and services
Creating credit and debit memo
Cancel previously posted billing documents
Automatically transferring billing documents to accounting
When a billing document is created for a sales order we
Credit the sales revenue account
Debit the customer receivables account

Sales Documents - Structure & related information

Sales Order
A sales order is grouped into three structures
1. Header
2. Item
3. Schedule Line

Outbound delivery
A delivery document is grouped into two structures
1. Header
2. Item
In standard system, several orders can be grouped into single outbound delivery, provided the referenced orders have same
1. Shipping point
2. Delivery date
3. Ship-to address

Picking List or Transfer Order

created for an outbound delivery
created for a warehouse number

Post Goods Issue

When PGI is done the system
Updates the quantity in inventory management and delivery requirements in materials planning
Generates additional documents for accounting
Adds the delivery to the billing due list

14/09/2014 09:54

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

3 of 6

http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

Updates status in sales documents

Billing
A billing document is grouped into two structures
1. Header
2. Item
In standard system, several orders/deliveries can be grouped into single billing document, provided the orders/deliveries have same
1. Billing date
2. Payer
3. Billing address
The effects of billing are
Debit on the customer receivables account
Credit on sales revenue account
System updates
- Sales information system
- Sales statistics

Master data in SAP

In sales and distribution, the following main master dates:
1. Customer master
2. Material master
3. Condition master
4. Output master
5. Customer material information master

Customer master
The master data for customer is maintain in 3 major area
1. General Data
2. Company Code data
3. Sales Area Data
Following is the table which shows detail on three main areas of customer master and the tab pages & details found under each area:
General Data

Sales Area Data

Address

Sales Details

Company Code data

Account info
like Reconciliation account

Control data

Shipping details

like Transport.zone, tax info

Payment
like Terms of payment, auto payment details

Payment transaction

Billing details

Billing Correspondence

like bank details, payment cards

like payment term, account details

like Dunning Procedure, payment notice

Marketing

Partner functions

Insurance

Export data
Contact Person details

Material Master
It is maintained in different views. Following are the important views maintained for material master in sales and distribution:
Views
1. Basic data 1

Key Fields
Base Unit of Measure
Material Group
Gross Weight & its unit
Net Weight
Volume & its unit
Size/dimensions
Languages Maintained

2. Sales Org 1

Sales unit
Division
Tax Data
Min.order qty
Min. dely qty
Rounding Profile

3. Sales Org 2

Matl statistics grp

Material pricing grp
Acct assignment grp

14/09/2014 09:54

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

4 of 6

Views

http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

Key Fields
Item category group
Product hierarchy
Material groups
Product attributes

4. Sales : Gen/Plant

Availability check
Batch
Transportation Group
Loading Group
Matl Grp Pack.Matls
Profit Center
Negative Stock
Serial Number

5. Foreign Trade Export

Comm./imp. code no.

Export/import group
Control code
Legal Control

6. Sales text
7. Accounting 1

Valuation Class
Material Price Determination
Price Control & Moving price or Standard price

Sales Document Type

Sales document type like OR in Sales and distribution mainly controls:
Number range
Item No increment
Reference mandatory
Item division
Read info record
Document pricing procedure
Incomplete messages
Alternative sales documents
Delivery block
Billing block
Immediate delivery
Subsequent Delivery type
Subsequent Billing type
Proposed delivery date
Lead time for delivery
Proposed pricing date

Plant Determination in sales order

To determine the plant in a sales order the system checks the master in the following sequence:
Sequence

Master Data

01

Customer material info. record of the sold-to Party

02

Customer master record of the Ship-to Party

03

Material master record of the material

Shipping Point
The following is combination with which shipping point gets determined automatically in a sales order:
Shipping point =

Plant

+ Shipping Condition

+ Loading Group

(Sold-to-Party)

(Material master Gen: Plant data)

Route
Route automatically gets determined in sales order based on following combination:
Route =

Departure Zone

+ Shipping Condition

+ Transportation Group

+ Transportation Zone

(from Shipping Point)

(from Sold-to-Party)

(from Material master)

(from Ship-to-Party)

Delivery Scheduling
As name denotes delivery scheduling is scheduling delivery for an order, which carries out through the following important dates:
1. Material availability date
2. Transportation planning date

14/09/2014 09:54

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

5 of 6

http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

3. Loading date
4. Goods Issue date
5. Delivery date

Availability Check
Following are features of availability check:
It is carried out at item level for a plant
It is done on the material availability date
If material availability date is in the past the forward scheduling is done, if not backward scheduling is done.

Item Category
Item category controls behavior of material in sales order. In a sales document, it mainly controls the following:
Relevance for billing of an item
Billing block
Pricing relevance
Business data relevance item
Schedule line allowed
Item relevant for delivery
Returns
Determine cost
Credit active
Incompletion procedure
Partner determination procedure
Structure scope (relevant for bill of material explosion)
Value contract material
Contract release control
The following is combination by which Item Category automatically gets determined in sales order.
Item Category =

Sales Document Type

+ Item Category Group

+ Item Usage

+ Item Category of Higher Level Item

{Material master)

(if any)

(if any)

Schedule Line Category

Every item which has a delivery will have a schedule line and the schedule line category is determined with the following rule:
Schedule Line Category =

Item category

+ MRP Type
(Material Master)

It mainly controls:
Delivery Block
Movement type
Item relevant for delivery
Req/Assembly
Availability
Product Allocation

Copy Control
It is normally set for
Header
Item
Schedule line levels
To control copying procedure we have
Data transfer routines
Copying requirements
Switches
Types of copying control:
S. No

Transaction Code

Source Document

Target Document

1.

VTAA

Sales Order

Sales Order

2.

VTLA

Sales Order

Delivery Document

3.

VTFA

Sales Order

Billing Document

4.

VTLF

Delivery Document

Billing Document

5.

VTAF

Billing Document

Sales Order

6.

VTFF

Billing Document

Billing Document

Pricing Procedure

14/09/2014 09:54

Basic Rules in SD Configuration - ERP Operations - SCN Wiki

http://wiki.scn.sap.com/wiki/display/ERPLO/Basic+Rules+in+S...

Pricing is an important component in SAP Sales and Distribution. Once an order is entered taking into consideration some major factors, the pricing procedure for the particular order is determined.
The major factors or combination is taken into consideration for pricing procedure determination in sales order:
Pricing Procedure Determination =

Sales Area

+ Customer Pricing Procedure

+ Document Pricing Procedure

(Sales Organization + Distribution Channel + Division)

(Customer Master-Sales area data)

(Sales Document Type)

Shipping
The basis for shipping is delivery.
Delivery document controls the following in deliveries
Number range
Item no increment
Storage location rule
Route determination
Text determination
Delivery split
Gen. packing material / item
Order required
Item category for delivery controls:
Check minimum delivery
Availability check
Relevant for picking
Storage location required
Determine storage location
Automatic batch determination
Text determination procedure
Packing control
Stk determ.rule

Billing
Billing is sales process is of the critical integration point between SD and FI Module.
It has got the following structure:
1. Header
2. Item
It mainly controls:
No. range
Posting block (to controls posting of invoice to accounting)
Relevance for rebate
Account determination procedure
Account determination recon account
Account determination pay.cards
Output determination procedure
Cancellation billing type

Account Determination
Automatic account determination in SAP Sales and Distribution sales order & billing documents take place based on following combination
Account Determination =

Sales Organization

+ Chart of

+ Account Assignment

+ Account Assignment

Accounts

Group for Customer

Group for Material

+ Account Key

+ G/L Account
on which the postings
will take place

sap_sd
Contact Us
Privacy

6 of 6

SAP Help Portal

Terms of Use

Legal Disclosure

basics

configuration

Copyright

config

determination

rules

information

info

sales_and_distribution

Follow SCN

14/09/2014 09:54