Business Process – What does it mean?

1. company which sells servers – Basic SD Flow

Quotation -> Order -> Delivery -> Shipping -> Billing

2. Same company selling software – Order / Delivery without Billing

Software is sold as a freebie along with some hardware.

No quotation -> Order -> Delivery -> No billing.

3. Power generating company – Consignment Process

It generates power 24*7. So it needs access to coal. Its vendor is open coal mine. Coal mine
maintains a minimum 100K Tons of coal in the power station as a “consignment”. When power
station needs coal, it will withdraw and if it does not like it, then it will return the coal.

4. Power station selling electricity / power to grid – Contract process

Contract – Power station will have a contract with the grid -> you have to buy power electricity
from me for 10 years @ XY Megawatts per year @ AB price.

Another contract with coal mine – Power station will have another contract with coal mine to
supply coal @ AB Tons per day @ XY price for 10 years.

Check Out all PR4 processes?

Document Type and how is it related with business process?

In SD, there are 3 Main classes of business process in SAP – (1) Sales, (2) Delivery, (3) Invoicing. Each of
them are configured at a different place.
An inquiry is a category of Sales process. Sales categories are :-

Why we have so many different categories?

E.g. Quotation vs. Order

1> Unlike Order, when you create quotation, demand is not transferred to Production.

2> It may have many statuses (unlike Order) –

It is 10% through in sales negotiation cycle

Or requires VP approval

Or hot lead / cold lead

Or approved internally

Or Lost.

3> unlike order, quotation needs not be configured with corresponding delivery or billing.

4> unlike order, Credit Management is not needed in quotation.

5> unlike order, quotation has validity dates.

Where to configure the document types?

Document Type

A document type represents all the variations that are possible in a particular category.

A document type represents a template that is used to characterize how a business process of a
particular category behaves. E.g. how credit should be done, how demand should be passed on to
production or whether status should be maintained etc.

Can you create your own custom category? => NO. You have to sue the existing ones.

Can you create your own custom document type? => Yes. You have to copy from the closest possible
category.
Rule:-

1> Always copy from the nearest clone.

2> While copying, use customer name space (beginning with Y or Z) => this helps in Upgrade.
Except enterprise structure, for custom functionality (document type, item category etc.) always
use customer reserve namespace. Because SAP does not deliver the enterprise structure.

Sales document Type Configuration:-

Sales document block -

If you no longer want to create documents of that document type. However, already created documents
can be processed.

Block is not specific to any “Customer” or “Sales Area”.

You can also specify if only automatic creation is allowed.

Number ranges-

A number range represents a sequence of numbers or interval of numbers that the sales document type
can have.

Internal number & External number -

If both internal and external number ranges are maintained and you try to create an order, then the
order number field will not be greyed out and you can enter the number externally. You may skip
entering the number externally and then system will create order number internally.

Item no. increment & Sub-item increment -

Why this spacing? => Customer asked for 3 materials which came as 3 lines in sales order like line item
10, 20 & 30. Now if customer asks to add one more material related to item 10, then you can manually
add one more line with number 15 or you can add another material with line 40 (automatically). This
way you can insert a line item in between a whole bunch of line items.

Sub-Item Increment – useful in case of bill of materials.

Customer Number range XDN1

Sales Doc number range VN01

General Control: - (4C 2R IO E)

Reference Mandatory –
You set it as “B – With reference to a quotation”. Then while creating an order, the system is forcing you
enter the quotation number. Here, you have not explicitely clciked on “Create with reference” but still
when you press enter, system is forcing to enter quotation number.

Business scenario where this is needed? => Suppose your company sells servers. Now customer always
complains that there are always some inconsistency with the orders like say pricing is not correct. So, the
sales guys decided that, when the order is created, an approved quotation is required.

Check Division –
While creating an order, you enter division – 01 (header data). Then in the line item, you selected a
material whose division is different – 07 (Item data). In this case how system will behave – this is
controlled here. If you set “2 - Error” in this field, then you will get below error message.
Credit Limit & Credit group – useful in credit management

Item division – If checked, it allows item division to be copied from the MMR. If left unchecked, it is
copied from the sales document header.

Read Info record

Output application – used in output determination.

Check Purchase Order Number –

While creating a SO, user enters the PO. But somehow that PO is already referenced by another SO. Then
this field provides a validation. Then the sales person will call the customer and inform that, you have
already sent the same PO. It may be a valid scenario – when customer sends the same PO to create a
different SO - in case of blanket PO.

If you set “A”, then…

Enter PO Number – Activate this field if the system should enter the document number (same as Sales
Order number) In the PO field if this field has not been maintained when the document is saved.

Transaction Flow:- (SIDQ)

Quotation messages –

Create a quotation (note – you have to enter valid from and valid to dates).
Then when you will create an order for same customer and material without referencing to this
quotation, then you should get a message saying – open qoutation exists.

Document pricing procedure, Status Profile & Incompletion Message.

Shipping:- (SIDD)

Delivery Type –

When you create an order, you have to enter sales order document type in VA01. But when you try to
create delivery for that order in VL01 (or inside VA02) or via batch job, do we enter delivery document
type? No. System automatically picks it from sales document type.

In delivery, where you can find it?

Delivery block –

Scenario – Sample order or evaluation order. You don’t want to send samples to all the customers rather
to some specific customers. Some one who is having authority will go and then remove the block (his
name will be recorded in the system).

Shipping Conditions –
Scenario – In the customer master, the shipping condition maintained is “Over night”. There is a shipping
cost associated with this which customer will pay. In case of sample orders (for trying our products), you
don’t need to send the goods over night. You can ship it in a relaxed way (to pick the cheapest option) so
that the customer won’t have to pay high cost.

Immediate delivery – Rush Order Scenario

Delivery will be created while saving the order.

When this is helpful? => In stanard scenario, orders will be created though the course of the day but the
deliveries will be created over night via batch process (VL04) which runs once every night. But if the
customer is waiting on your front desk and asking for release of the goods, then you can’t say No. In this
case, don’t create a standard order rather create a rush order.

Billing:- (BBCOID)
Delivery relevant billing type –

Order – 2 line items – PC and warranty (service)

Delivery – only one line item – PC. Service can’t be delivered.

Billing – Only one line item – PC. Because invoice is created with respect to delivery.

Other way –

Order relevant billing type –

Billing – Only one line item – warranty (service). Because invoice is craeted with respect to order.

Create an invoice for the same order where warranty is going to charged to the customer.

Thumb rule – A sales document can have both service and delivery relevant materials. So, you can
invoice both based on above settings.

Inter company Invoice –

An US customer places an order. One of the item is not present in the US plant. The customer has to wait
for some days to get this item. To avoid this, you want to deliver this ietm from a plant belonging to a
different company code (from canada). The Canadian plant directly ships the item to the customer. To
adjust the accounting, the canadian plant will create an IC invoice to US plant. So, two invoices and two
payments will be done :-

- From customer to US company code

- From US company to Canada company code.

Billing Block –

Bill Plan Type

Checking group – regrading payment card validation.

Requested Delvery date / pricing date:-

Proposal for Requested delivery date & Lead time , pricing date, valdi from date.