This segment from our 374 page SAP Sales and Distribution manual is being made available as a sample of our training manuals. Please contact
[email protected] if you have any SAP training needs, or visit www.ERPtips.com for more information. Written by Thomas Woelfel Published by Klee Associates, Inc. Copyright Klee Associates, Inc., 2007, 2008
Using Incoterms to Calculate Freight Charges Many times you may want to use certain freight aspects to induce pricing conditions. This example will show how you can use pricing for several different forms of master data. If you want to learn more about pricing, sign up for the SD Pricing class being offered by ERPtips.
SPROSales and DistributionBasic FunctionsPricingPricing ControlDefine Condition Tables
Click on the Display Condition Tables box and Click on the Choose button. The Allowed Fields show which fields are available to create the condition tables and are the master data triggers for pricing. If needed, you can customize the Field Catalog to add fields that are not standard if needed.
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On this screen enter the Table you want to review – in this case 999 and click the Enter button
.
This screen shows the fields that are possible to use to create the condition table; the fields on the left are the fields that are being used for this specific table. For this table we are using Incoterms and Incoterms (part 2) as the key fields.
We will not review the next piece in detail, but will provide a quick overview. If you are creating a new condition table it needs to be tied to an access sequence (which is what sets up the key conditions we see in VK11). This Access Sequence needs to be assigned to a Condition Type (the vehicle for the pricing base price, surcharge or discount). The Condition Type then needs to be added to a Pricing Procedure that we have reviewed in the Condition tab of the sales order.
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Now that we have seen the Condition Table lets create a Condition Record.
Type transaction VK11 . Type Condition Type KF00 The Key Combinations will pop-up – from here click the first radio button and then press Enter,
On the next screen, we want to enter the record that will trigger the freight charge. The Conditions are first tied to a Sales Area, then enter FOB in the first Incoterm field FOB and in the other Incoterm field enter the town that your customer has been created in. Also add the rate that at which you want this surcharge to be calculated. Just like the base price we set up, this price has the ability for validity periods as well. This format is what is used in all of the condition records.
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Field
Value
Incoterm 1
FOB
Incoterm 2
Destination
Rate
Student Choice
Klee Associates, Inc.
Once you have entered the information below, click the Save button
.
OK, so how does this look in a sales order? Type VA01 and enter the customer number you have created and the material you have been using.
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Field
Value
Order type
OR
Sales organization
1000
Distribution channel
10
Sold-to Party
Student Customer
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Field
Value
Material
Student Material
Quantity
Student Choice
Then go to the item conditions icon – the "Coin". Click and highlight a line item and click the "Coin'.
On the Conditions tab, we see the freight condition for which we just created an active condition.
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This example of Freight is just one example of how to use the Condition Technique and the Condition records to cause certain surcharges and discounts for Sales pricing. Click the green arrow back to exit the order.
Review Questions 1. Where do you go to set up the master data for a freight condition?
2. What is a key combination?
3. Where is a freight condition seen in the sales order and what is the menu path?
Advanced Payment Terms Terms of Payment can be used in many ways besides just giving your customer a timeframe for payment. They can be used as a way to promote certain product – in cases of certain Sales Deals (VB21) or Promotions (VB31) you can create a special payment term tied to those deals. This, in theory, will increase the sales for that product. The Sales deal and Promotion functionality is a master record that is created to put into effect special pricing, terms of payment, or delivery terms for a certain product or groups of products. The information in the Sales Deal takes precedence over the standard customer or material master data for the time the Sales Deal or Promotion is in effect. . You can have multiple terms of payment on an order assigned to each line item, but any time there are different payment terms on an order it causes a Billing documents split. This is a standard setting in the copy control for billing document create. The terms of payment are handled in FI more often than in SD. In SD, we simply tie them to the sales order via the customer master or specific sales deals. They are then automatically posted to the sales order. The payment terms will default in to the header of the sales order:
Observe the instructor..
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If there is a different terms of payment for an item it can be seen on the ItemBilling DocumentTab The Billing Document tab is the tab that contains all information that is specific to billing-related activities for this item. For example: Incoterms, Payment Terms, and Dunning-related information.
Once the Invoice has been posted, Accounts Receivable will begin looking at the open receivable quantity. Each time an aging report is run (what is past due and when is it due) the Invoice Date, Baseline Date (date from which the credit starts) and the payment terms date are key fields that will be used to determine past due items. This value is always recalculated based upon the date of the report to see what the customer owes based upon the discount in the terms To review how the payment is processed we will look at the following example. Invoice of 100 USD on Jan 1, 2006
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Baseline date = invoice date Terms of payment of 2% discount 30 days, net 60 days Customer pays 98 USD on Jan 25, 2006 When the payment is received, Cash is credited 98 USD – Expenses is debited 2 USD and the Customer account is credited 2 USD. The customer credit is not a document, just a FI posting to lower the open receivable to match the cash payment + discount applied.
For the full understanding of how FI handles the Accounts Receivable postings for a payment discount please look into the ERPtips Finance class.
Review Questions 1. When the payment terms are put on the sales order what module is most concened with this data? 2. What are two factors of payment terms?
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Purchase of this book or acquisition at an ERPtips class, constitutes an implied agreement by the purchaser to a limited, license granted to the purchaser by Klee Associates, Inc., specifically for purposes limited to improving your personal knowledge of SAP software which does not in any way compete with Klee Associates. This manual is protected by copyright law, and is sold or is part of an ERPtips class with the following conditions: The manual will be used for your personal professional development. The manual will not be physically copied for distribution to other individuals or converted to an electronic copy for distribution to other individuals, unless copyright permissions for copying have been acquired from Klee Associates, Inc. The manual will not be used to conduct training classes by you or other individuals, without the written permission of Klee Associates, Inc. Inclusion of the concepts in this book in any internal client training material is allowed if the source of the concepts is acknowledged as follows:
Copyright 2007, 2008 All rights reserved. Used with permission. Klee Associates, Inc.
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