SAP SD Useful Information

, The sales areas include: sales organization, distribution channel, division. 2, A delivery is always carried out by one shipping point only. The shipping point is assigned to a plant. The loading points are assigned to shipping points. 3, A consumer is a natural, private business partner with whom you have a relationship involving the transfer of goods and services. you create cutomer master records for bussiness partners who are consumers. 4, About customer hierarchies, we can exclude the possibility of defining ship-to parties as higher-lever nodes, since ship-to parties play no role in pricing. 5, Services are represented and managed in the SAP system as materials. services are immaterial goods that differ from other goods. 6, Item proposal is very useful when some customers always order the same products or services. 7, In the SD module of standard R/3 system , the system selects the most specific record-the customer-specific price. If no customer-specific price existes, the system looks for a valid price list type. If no valid price list type existes, the system takes the basic matherial price. This search strategy can change in customizing Access sequences. 8, For a third-party business transaction , the costs are determined from the purchase order. 9, The aim of the pallet discount is go give a discount only for whole units,e.g. wholoe pallets. 10, Condition technology of condition records include: KONH: Condition header KONP: condition items possibly with supplementary conditions KONM/KONW: Quantity scale or value scale. 11, Free goods can only be supported on a 1:1 ratio. This is means that an order item can lead to a free goods item. 12, In some festival seasons, we would create a material determination record for a specific material, which would substitute common material. 13, Material listing and exclusion lets us control which material specific customers or may not buy. For example, if we create a material listing for a specific customer, the customer can only order products from that list. The way same as exclusion. Note that:Material listing applies to two partner functions in S&D: sold-to party and payer. 14, Replenishment lead time is only includeed in the check performed on the basis of ATP (available to promise) quantity. 15, For in-house produced goods, the overall replenishment lead time is required, for externally produced goods, the planned delivery time, the processing time for goods receipt, or the processing time for purchasing is required.

16, The following types of transfer of requirements exist: Transfer of requirements with individual requirements. Transfer of requirements with collective requirements. Individual requirements have the advantage that the initiating document can be dentified (the initiating document is displayed in the availability overview for each requirment). Collective requirements can either be created daily or weekly.It’s function is useful for dealing with a large volume of sales orders, as you obtain a clearer list of requirements and the system response time is also better. 17,About credit managment and risk managment in SAP, the risk is greatest if you use no payment guarantees and is at a minimum when you use letters of credit. 18, Sales order stock is not available for material requirement planning(MRP). 19, In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. 20, Make sure that you transfer only individual requirements for materials with engineering changs. This is because chang statuses can be different for each item. If you transfer total requirements in this case , serial numbers will not be forwarded to production. 21, External agent functions have been developed for just-in-time processing. 22, An internal delivery schedule used to fine-tune requirements planning. The planning delivery schedule serves to: :Limit the planning period of schedule lines in forecast delivery schedules :Break down the weekly or monthly schedule lines sent in by the customer into daily req. 23, About base date, we must specify a base date, otherwise, the system does not copy schedule lines into the planning delivery schedule. 24, If we have not entered an instruction in the scheduling agreement, then the system dose not allow you to create or maintain planning delivery schedules. 25, Terminology used for trade between countries: Dispatch: you send goods to another country within your economic zone. Receipt(arrival): you receive goods from another country within your economic zone. Export: you send goods to a country outside your econmic zone. Import: you receive goods from a country outside your economic zone. 26, If we want to make sure that the goods are sent out before the invoice is created, we would create an invoice on the basis of the delivery. If we want to receive money before we send the goods to the customer, we would create an invoice wih reference to a sales order. When we bill a customer for service, we would probably refer to the salse order, since a service is usually based on an order, not a delivery. 27, Because the full product(the liquid goods)cannot be delivered separately(loose, without packaging), the full product and tied empties material together form a fixed unit from the

perspective of the full product. This does not apply to united empties. Untied empties materials can also be posted separately(upon return delivery to the vendor, for exampleexchange of empties). 28, The SD self-billing procedure allows the customer to send self-billing documents to the vendor, stating the deliveries and amounts that are settled and paid. 29, A lump sum payment is a special condition which does not depend on salves volume but on a promotional performance such as a front of store display or a local advertisement. 30, Down payment are payments made before completion of the product, with no interest. They represent short or medium term outside capital procurement and therefore improve the company’s liquidity situation. 31, Shipping points are independent organizational entities within which processing and monitoring of the deliveries as well as goods issue is carried out. A delivery is processed by one shipping point only. 32, The total weight of the delivery is not increased by the packing weights. Handling units that were created in the delivery cannot be unpacked in the shipment document. 33, Using the self-billing procedure, you can only create invoice that have already been assigned accounts and that have been forwarded to FI. 34, Shipment costs can be a considerable cost factor. For this reason, they are often not includeed in the material price, but are billed separately by the shipper to the customer during billing. Sales and Distribution integrates with a variety of other modules. Your company manages customer orders from initial request for product to the receipt and posting of customer payment as part of the Customer Order Management cycle. To begin the cycle, your company typically enters customer orders which contain customer and product information, as well as delivery schedules. Order entry personnel use this information to advise customers about prices and delivery dates before they confirm an order. Here Sales and Distribution integrates with Materials Management for availability checking. For make to order product, Sales and Distribution integrates with Production Planning so that the product is made to satisfy the customer order requirement. Delivery and billing processing both integrate with Project Systems. Following order entry, your company schedules and organizes customer orders for optimal delivery. Product is picked in the Warehouse Management module (noting any discrepancies from the ordered quantity) and print the shipping documents. When the delivery is released to the customer (truck leaves the dock), inventory quantities must be reduced and the general ledger must be updated appropriately. Here Sales and Distribution, by means of Posting Goods Issue, integrates with Materials Management and Financial Accounting and possibly Controlling. After you deliver the product, an invoice must be generated and the transaction posted to the general ledger. The Financial Accounting periodically reviews the customer’s open items and posts the incoming payments when received.

Configuration of Sales document- T-code VOV8 (Menu path: IMG- Sales and distribution-sales-Sales documents-Sales document headerDefine sales dociment type.If you require Copy the sales document types and make necessary changes. A) Title section- Naming and type of S.document 1) Name- Maintain the name of Sales document type 2)SD categrory- Maintain Type of document type – Inquiry,quotation,cntract etc 3)Indicator -subclassiffication-Maintain this indicator – delivery order,Invoice correctin reuqest etc for analysis and reporting. Will be displayed in Table TVAK only.This would not be displayed in Sales document. 4) Sd block- Select the parameter if ypu want to block from porcessing this document type B) Number system-In this section numbering of sales documents item are controlled. 1) Internal number assignment- Maintain this number range if you want system to generate the number for sales documents. Maintain the configuration the number range in VN01. 2) External no. assignment—Maintain user has to enter -VN01 3) Item no increment-Maintain value4) Sub-item increment-Maintain value if have BOM or other sub-items. C) General control-This controls overall sales document. 1) Reference mandatory-select choice- If you want any order to be created with reference to other document like Inquire, quotation etc.. If you maintain value here, system will not allow you to create Sales document without particular reference. 2) Check division- if item division and s order header (customer master) is different- gives error, warning etc. …This is useful for cross division sales. 3) Probability-sales probability- customer confirming inquiry/quotation- useful for estimation of transfer of requirement and analysis later. 4) Credit check limit and credit group – if credit management active, setting is required select the option 5) Output application- selects the output procedure for sales, define in NACE. 6) Material entry type- useful for sales from catalogue- retail/internet sales 7) Item division- proposed from material master or sales document header. Useful for cross division sales

8) read info record- reads data from customer material information 9) check purchase order no and enter PO number- useful for order against multiple PO and Enter PO no- If it is marked, system won’t allow you to save sales order without PO no, 10) Commitment date-Maintain the value here if you different type of sales documents and committed quantities D) Transaction flow- This sections maintain values for activities for sales order transaction 1) Screen sequence group- Different screen group different doc types-. 2) Incompleteness procedure- Maintain Incompleteness procedure for sales order you have defined in T-code OVA2 3) Transaction group-controls type of transaction you can process for documents typesVA01 can not be used to create inquiry; it is useful for reporting later 4) Document pricing procedure-Maintain the values as per requirement. It is mandatory to decide pricing procedure in sale order. 5) Status profile- user status – define sequence for user status- IF you business requirement like somebody to authorize release the sales order as per certain criteria. 6) Alternate sale document type 1 and 2- can change selection of s.doc type in sales order 7) Transaction variant-required when include this document in Batch processing 8) Display range- select the option as per your requirement 9) F-code for overview screen- maintain selection to get default overview screen- customer material info 10) Quotation message- checks for open quotation 11) Outline agreement message- check for outline agreement and authorized partner for release order 12) Master contract message info-in contract creation- checks with master contract 13) Product attribute message- select the option to check that ship-2-party accept the product attribute entered manually in the order 14) Incompleteness message- tick if want system to advises to save the incomplete message E) Scheduling agreement-This section controls setting of scheduling agreement created with reference to this document type 1) Correspondent delivery type- selects the delivery type

2) use- enter selection if you are using same material as main item and spare parts 3) MRP for delivery schedule type-select the MRP type 4) Delivery block- if items does not meet tolerance limit in sales order it block the order F) Shipping-This section controls settings for shipping activities and documents triggered from this Sales document type 1) Delivery type-proposes delivery type – do not maintain for inquiry and quotation 2) Delivery block-Maintain the block in case of free of charge sales- some body has to check the quantity before dispatch 3) Shipping condition- Maintain the values- this precedes the value maintained in customer master4) Shipment cost profile-Maintain the value if you require to shipment cost, 5) Immediate delivery- Maintain value as per your requirement G) Billing-This section controls settings for billing related functions and documents triggered from this Sales document type 1) Delivery related billing type- Maintain value if items are delivery related 2) Order related billing type- Maintain value if item is not delivery relevant 3) Intercompany Billing type-Maintain value for Intercompany billing process 4) Billing Block- Maintain value as per your requirement-if somebody to check 5) Condition type line items-Maintain value considering Pricing in sales order. 6) Billing Plan type-In case of Milestone/Periodic billing you need to maintain this value. 7) Payment Guarantee procedure-Maintain the value as per settings in Risk management 8) Payment Card Plan type and checking group-These values to be maintained if you are working with payment card processing functionality. H) Requested delivery date/Pricing date/Purchase order date-This section controls settings for delivery lead time,Pricing date and PO date 1) Lead time in days- value in this field proposes requested delivery date in Sales order after current date. 2) Date type- date format for schedule line internally picked up by the system. 3) Proposed pricing date based on requested delivery date-Value maintain here control pricing date in sales order. 4) Proposed valid date- Maintain value for quotation 5) Proposed delivery date- System automatically proposes as current date as proposed delivery date 6) P O Date-Proposal for Purchase order date. I) Contract- This section controls settings for Master Contract and Lower level Contract 1) Pricing procedure for contract conditions at Header level and Item level- If you have

header/item level pricing procedure, maintain the values 2) Contract Profile-Maintain value for defined contract profile in VOVR 3) Billing request-Maintain the value for proposed release order 4) Group referencing procedure- Maintain the value for Grouping of contract in case of Master contract cofig. 5) Contract data allowed for Sales document type-Maintain the appropriate indicator for contract data can be entered into particular sales document type and changes made to contract header data affects item data. 6) Activity type for actions procedure -This field is useful for config for rental contract, you need follow up actions. 7) Proposal for subsequent order type-Enter particular order type proposed from contract for subsequent processing 8) Check partner authorization-This field most useful when you have different partners involved in contract creation and authorized to create release order against contract. Maintain appropriate value. 9) Update lower level contract- On/off- Maintain this switch when you effected changes in Master contract flow into lower level contract. J) Availability check-This section control availability check settings in APO system.