SD Study Material Part 1
Short Description
SAP SD...
Description
SD Study material-Part I 1.
SAP Screen Elements _________________________________________________________ 4
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Enterprise Structure___________________________________________________________ 6 ORGANIZATIONAL UNITS _____________________________________________________________ 7 Attributes & Application_________________________________________________________________ 12
3. MASTER DATA ________________________________________________________________ 13 4. CUSTOMER MASTER DATA ____________________________________________________ 15 Customer Master – Mass Maintenance (T. Code: MASS or XD90) ______________________________ 23
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CUSTOMER MATERIAL INFORMATION RECORD: ______________________________________ 24
5. COMMON DISTRIBUTION CHANNELS & DIVISIONS:______________________________ 25
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6. CUSTOMIZATION OF CMD or ACCOUNT GROUP: ________________________________ 29 6. MATERIAL MASTER DATA _____________________________________________________ 32 Material Master – Mass Maintenance (T. code: MASS, _______________________________________ 38
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8. SALES DOCUMENTS ___________________________________________________________ 39 Sales order: ____________________________________________________________________________ 41
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STRUCTURE OF SALES DOCUMENT:___________________________________________________ 41
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FUNCTIONS OF SALES DOCUMENT: ___________________________________________________ 43 Types of Sales Documents used in Business process ___________________________________________ 44
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Sources for Document Data ______________________________________________________________ 59
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Sales Document (VOV8) DETAILS: _______________________________________________________ 62
9. SPECIAL BUSINESS TRANSACTIONS (Cash order & Rush order sales)____________ 63 10. ITEM CATEGORY ______________________________________________________________ 67 FUNCTIONALITY OF ITEM CATEGORY ________________________________________________ 68 Types of Item Category __________________________________________________________________ 68 ITEM CATEGORY DETERMINATION___________________________________________________ 70
11. SCHEDULE LINE CATEGORY __________________________________________________ 70 Schedule Line Category Controls __________________________________________________________ 71
12. SALES ORDERS ______________________________________________________________ 73 Blocking Sales Orders ___________________________________________________________________ 74 Setting a Delivery Block _________________________________________________________________ 74
BASIC FUNCTIONS ______________________________________________________________ 75 13. PARTNER DETERMINATION: VOPA ____________________________________________ 75 Partner Types and Assigned Partner Functions ______________________________________________ 77
14. CONDITION TECHNIQUE STEPS _______________________________________________ 80 15. OUTPUT DETERMINATION ____________________________________________________ 81
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16. MATERIAL DETERMINATION __________________________________________________ 85 17. MATERIAL LISTING & EXCLUSION_____________________________________________ 87 18. PRODUCT PROPOSAL / ITEM PROPOSAL ______________________________________ 88 19. BILL OF MATERIALS (BOM): __________________________________________________ 89 20. CONSIGNMENT STOCK PROCESSING _________________________________________ 92 21. THIRD PARTY ORDER PROCESSING _________________________________________ 110 Process Flow for 3rd Party Sales _________________________________________________________ 115
22. SALES INCOMPLETION LOG / INCOMPLETION LOG ___________________________ 118 23. SHIPPING ___________________________________________________________________ 124
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SHIPPING POINT DETERMINATION: __________________________________________________ 125
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OUT BOUND DELIVERY IN SHIPPIG (VL01N) __________________________________________ 129
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TYPES OF DELIVERY DOCUMENTS ___________________________________________________ 130 DELIVERY SCHEDULING ____________________________________________________________ 136 ROUTE DETERMINATION ____________________________________________________________ 138 BATCHES ___________________________________________________________________________ 144
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SERIAL NUMBERS ___________________________________________________________________ 145 PRICING IN THE OUTBOUND DELIVERY ______________________________________________ 146
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PICKING IN SHIPPING (LT03) _________________________________________________________ 148
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GOODS ISSUE in SHIPPING (VL02N) ___________________________________________________ 158 EFFECTS OF GOODS ISSUE POSTING _________________________________________________ 159
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PROOF OF DELIVERY (POD) __________________________________________________________ 161
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24. BILLING _____________________________________________________________________ 162 STRUCTURE OF BILLING DOCUMENT ________________________________________________ 163 BILLING TYPE CONTROLLS__________________________________________________________ 173 COPYING CONTROL _________________________________________________________________ 188 BILLING DOCUMENT TYPE:__________________________________________________________ 197 BILLING DOCUMENT CONTROLS: ____________________________________________________ 197 SUMMARY OF BILLING ______________________________________________________________ 199 BILLING – FI POSTINGS ______________________________________________________________ 203 SD / FI INTERFACE IN BILLING DOCUMENT __________________________________________ 205 Reference Numbers and Allocation Numbers _______________________________________________ 207 SD / CO - PA Interface _________________________________________________________________ 208
25. CUSMTOMER COMPLAINTS __________________________________________________ 211 26. PRICING ____________________________________________________________________ 223 Functionality of Condition Types: ________________________________________________________ 230 Different Condition Types in Pricing ______________________________________________________ 239 HEADER & ITEM CONDITIONS _______________________________________________________ 245
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PRICING SCALES ____________________________________________________________________ 246 CONDITION SUPPLEMENTS __________________________________________________________ 247 PRICING LIMITS (UPPER & LOWER LIMITS): _________________________________________ 247 CONDITION UPDATE ________________________________________________________________ 248 CONDITION EXCLUSION GROUP _____________________________________________________ 248 FREE GOODS DETERMINATION ______________________________________________________ 250 Bonus Buy ____________________________________________________________________________ 255 ADVANCEED PRICING _______________________________________________________________ 259 Understanding certain complex pricing requirements ________________________________________ 263 Release Procedure for conditions _________________________________________________________ 275
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27. REBATE AGREEMENTS ______________________________________________________ 278 Retroactive Rebate Processing ___________________________________________________________ 282
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28. CREDIT MANAGEMENT ______________________________________________________ 285 Update group _________________________________________________________________________ 290 SUMMARY OF CREIDT MANAGEMENT CONFIG STEPS ________________________________ 294
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Additional checks - in Automatic credit control _____________________________________________ 298
29. INTERCOMPANY SALES & BUSINESS PROCESSING __________________________ 301
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Pre-requisites for Inter company sales processing ________________________________ 302
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FI posting in Intercompany sales process __________________________________________________ 310
30. AVAILABILITY CHECK _______________________________________________________ 317
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Types of Availability Check _____________________________________________________________ 317
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Prerequisites for Availability Check ______________________________________________________ 319 Availability Check - Configuration _______________________________________________________ 321 TOR – Configuration___________________________________________________________________ 327 Availability Check with RLT: ___________________________________________________________ 331
31. CROSSING SELLING _________________________________________________________ 333 32. Batch Management __________________________________________________________ 336
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1. SAP Screen Elements
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Command field: You can use the command field to go to applications directly by entering the transaction code. You can find the transaction code either in the SAP Easy Access menu tree (see next slide) or in the relevant application under System® Status. Menu bar: The menus shown here depend on which application you are working in. These menus Contain cascading menu options. Standard toolbar: The icons in the system function bar are available on all R/3 screens. Any icons that you cannot use on a particular screen are dimmed. If you leave the cursor on an icon for a moment, a small flag will appear with the name (or function) of that icon. You will also see the corresponding function key. The application toolbar shows you which functions are available in the current application. Title bar: The title bar displays your current position and activity in the system. Check boxes: Checkboxes allow you to select several options simultaneously within a group. Radio buttons: Radio buttons allow you to select one option only. Status bar: The status bar displays information on the current system status, for example, warning and error messages. A tab provides a clearer overview of several information screens. Options: You can set your font size, list colors, and so on here.
What is full form IMG and SPRO? IMG :- Implementation Guide. SPRO: - SAP Project Reference Object.
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Use the menu option System® User profile® Own data to set your own personal profile. You can choose between the Address, Defaults and Parameters tabs. Address: You can create and maintain personal data here, for example, name, function, room number, telephone number, e-mail addresses and so on. Defaults: Defaults include the date display format, the decimal notation format, the default printer, the logon language, and so on. Parameters: Use this to assign entries to commonly used fields. This is only available for input fields that have been allocated a parameter ID. Procedure for finding out a field’s Parameter ID: Go to the input field to which you want to assign a value. Choose F1, then the “Technical info” pushbutton. This opens a window that displays the corresponding parameter ID (if one has been allocated to the field) in the “Field data” section. The User profile menu also contains, among others, the following options: Hold data, Set data, Delete data. Use Hold data to keep data values that you have entered in fields in an application for the duration of a user session. When you call up the application again, you can overwrite these values. Once you have set data, you can no longer overwrite these values and have to use Delete data if you want to enter different values.
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2. Enterprise Structure Enterprise Structure or Organizational Structure is a framework in which all business transactions can be processed. ENTERPRISE STRUCTURE IN SAP Level
Enterprise Structure
Organization Structure in SAP
Module
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Cost Account
Controlling Area
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External Logistics
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Accounting
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Inventory Mgmt
Slocs/ Special Stocks / Batches
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Plants
MM MM
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Company Code: it is the company for which we implement SAP. It is defined by FI. (4 digits code). It is the highest level of organizational element in Ent Stru, which allows posting revenues to G/L accounts. Sales Organization: (4 digits code) is an organizational unit responsible for sale and distribution of goods and services. Distribution Channel: (2 digits code) is a channel through which goods or services reach the customer. Division :(2 digits code) the range of goods or services that the company manufactures falls into different divisions. Sales Area: combination of Sales Organisation, Distribution Channel and Division. Distribution chain: combination of Sales Organisation and Distribution Channel. Sales Office: geographical aspect of the organization. Sales offices are assigned to sales areas. Sales District: Also referred as customer districts, can be geographical area or regions. You find this field in Customer master data that are copied into the Header & Item data of the sales order. It is used for statistics purposes as well as for pricing. Plant: the factory is called the plant in SAP.
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Internal Logistics
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FI
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Valuation Areas
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Company Code
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Purchase Org
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Sales Org
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RELATION SHIPS: Company Code to Sales Organisation: Sales Organisation to Distribution Channel: Distribution Channel to Division: Plant to Company Code: Plant to Shipping Point: Plant to Sales Organisation:
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Division is always organization specific. If sales organisation wants to use a plant, that plant must be assigned to the sales orgn. Master data records are multiplied by each additional organizational element you have.
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One to Many Many to Many Many to Many. Many to One. In Intercompany: Many to Many One to Many. Many to Many if in one geo area. Many to Many.
Menu Path for Sales Orgn/ Distbn Channel/ Sales Office/ Sales Group: SPRO- IMG- Ent. Stru. - Defn. - S.D.- Define, Copy, Delete, Check Sales Orgn/ Distbn Channel/ Sales Office/ Sales Group.
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Menu Path for Division Creation: SPRO- IMG- Ent. Stru. – Defn. – Logistics General- Define, copy, delete, check div. Defining Plant: SPRO- IMG- Ent. Stru. – Defn. – Logistics General- Define, copy, delete, check plant. A plant, though always linked to one company code, can be linked to several sales organizations. Assigning Plant to Company Code: SPRO- IMG- Ent. Stru. – Assignment- Logistics General- assign plant to company code.
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Define Sales District: OVR0 SPRO- IMG- Master Data- Business Partner- Customer- Sales- Define Sales District. Assignment Path: SPRO- IMG- Ent. Stru. – Assignment – Sales & Distbn. : Assign Sales orgn to company code: company code 4 digits code. Assign Distbn channel to Sales orgn Assign Division to Sales orgn Set up sales area Assign sales office to sales area Assign sales group to sales office Assign plant to sales orgn – Distbn channel Business area account assignment: Define rules by sales area Assign business area to plant & Item Division. Assign business area by sales org, Distribution channel and Item Division.
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Organisation in Shipping & Transportation: A delivery is always carried out by one shipping point only. Shipping points are subdivided into loading points. Shipping point is assigned to a plant.
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The shipping point depends on the following: Shipping Conditions Loading Group Delivering Plant
ORGANIZATIONAL UNITS 1. ORGANISATIONAL STRUCTURE: ENTERPRISE Structures represent the legal and organizational structure of a company. Structure is possible from the point of view of SD, FI & MM. It is possible to combine these structures. The organizational structures form a framework in which all business transactions can be processed. 2. ORGANIZATIONAL STRUCTURE: Client
Represents Corporate Group All Org units within a Client are under one Business Control Self contained Technical Unit General Data & Tables are stored at Client Level
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3. ORGANISATIONAL STRUCTURE: Finance / Controlling a) Company Code (FI, SD): Legal and independent accounting entity. Smallest Org unit in external accounting. Represent Independent Companies in a Group. Required to create balance sheets and profit and loss statements. Company Codes are independent from each other in the legal sense. Each Company Code uses exactly one Chart of Accounts. Several Company Codes can use same Chart of Accounts All FI transactions are maintained at Company Code level. One Company Code must be created
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b) BUSINESS AREA Separate Business Unit for which Cross-Company Code reporting can be carried out Not limited by Company Codes Used to calculate Profit & Loss Statements across Company Codes, only for Internal Reporting. Business Areas in all Company Codes must have same description. GL Accounts can be posted by Business Area. Assigned to a Sales Area, determined at item level in document based on 3 fixed rules: • Plant and Item Division. • Sales Area of the Document. • Sales Org, Dist Channel & Item Division. Optional
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4. ORGANISATIONAL STRUCTURE: Sales & Distribution
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c) Sales Organization (SD only): Org unit within logistics that structures the Company according to its sales requirements. Responsible for the Sales and Distribution of goods and services. Represents the selling unit as a legal entity. Responsible for product guarantees and other rights to recourse, for example. Regional subdividing of the market can also be carried out with the help of Sales Orgs. Highest Summation Level in Sales Statistics. Has own Master Data. Each business transaction is processed within a Sales Org and must be specified in all documents in SD. It is therefore available for all basic functions of SD (such as pricing, availability, etc.). Assignment to Company Code: Many : One Assignment to Plant: Many: Many (Sales Org can be assigned to Plant from another Company Code -> Inter-Company Billing) Uses of Sales org: A Sales Organization is the highest level of organizational Unit in SD A new Sales Organization should always be created by copying an existing one Sales Organization has address, calendar, Statistical Currency and controls Rebate Processing, Inter-Company Sales Assigning Sales Organization to Company Code establishes a link between SD and FI system Reports can be generated at Sales Organization level
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d) Distribution channel (SD only): Represents the channel through which salable materials or services reach customers (e.g. wholesale, retail and direct sales). General Structure for distributing goods. Can be used to define responsibilities, achieve flexible pricing, and differentiate sales statistics. Master data relevant for sales can differ for each Sales Org and Distribution Channel. Assignment to Sales Organization: Many: Many
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e) Division (SD only): Used to group Materials and Services based on responsibility for sales or profits from saleable materials or services. Product Group or Product Line. Material can belong to one Division only. Assignment to Sales Organization: Many: Many
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f) Sales Area (SD only): Combination of Sales Organization, Distribution Channel & Division. Creating a Sales Area allows you to exclude certain combinations of the different organizational areas. Each SD document is assigned to a Sales Area. Master Data & Analyses can be maintained for a Sales Area. Mapping to Company Code: Many: One (based on assignment of Sales Organization).
Common Distribution Channel / Division: Common Dist Channel or Division is representative for the actual Dist Channels / Divisions assigned to it (defined separately for Customer / Material Masters & Condition Masters). Thus, there is lesser need for Master Data Maintenance in Customer / Material or Condition Masters.
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g) Distribution Chain (SD only): Combination of Sales Org & Distribution Channel Delivering Plant is assigned to Distribution Chain
5. ORGANIZATIONAL STRUCTURE: Sales / Business Development The Sales Organization is represented by the elements: sales office, sales group and salespersons.
i) Sales Office:
Represents geographical aspects of the organization in business development and sales Can be considered as a subsidiary. Establishes contact between the firm and the regional market. Assignment to Sales Area: Many: Many
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Sales Group: Subdivision of the staff of the Sales Office. Assignment to Sales Office: Many: Many
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Salespersons: • Sales Representatives. • Assigned to Sales Office & Sales Group in Employee Master Record (HR). Can be selected as Business Partner in Sales Document or Customer Master. • Assignment to Sales Office & Sales Group: Many: Many
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6. ORGANIZATIONAL STRUCTURE: Logistics Execution / Shipping
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k) Plant (SD, MM): • Central Role in Logistics • MM: Location where materials are kept • PP: Manufacturing facility • SD: Location from where goods / services are distributed (must be configured as Delivering Plant) • Essential for determining Shipping Point • If Delivering Plant of Distribution Chain belongs to different Company Code, then it leads to Cross-Company Sales / Inter-Company Billing. • Assignment to Company Code: Many : One • Assignment to Sales Organization: Many: Many • Assignment to Distribution Chain: Many: Many Storage Location (MM): • Location where Material Stock is stored. • Stock is managed at Storage Location level. m) Shipping Point (SD): • Created at Client Level. • Highest-level Org Unit in Shipping. • The shipping point is the part of the company that is responsible for the type of shipping, the necessary shipping materials and the means of transport. Is a physical place and should be near the plant to which it is assigned. • Each outbound delivery is processed by one Shipping Point. • Can be set as Goods Receipt Point. • Assignment to Plant: Many: Many n) Warehouse • An organizational division of a plant for managing materials stored in different places. • Warehouse number Assigned to combination of Plant and Storage Location. • Several Storage locations within a Plant can have same Warehouse Number.
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2) ORGANIZATIONAL STRUCTURE ASSIGNMENT SUMMARY Level
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Lev Can be assigned to -> el
Chart Cmpy of Code Acct
Sales Org
Dist Chanel
Dist Chain
Divi
Sales Area
Sales Off
Sales Group
Plants
Ship Point
1 One Company Code One Chart of Acct 2 One Sales Org > 3 One Dist Channel > 4 One Dist Chain > 5 One Division > 6 One Sales Area > 7 One Sales Off > 8 One Sales Group > 9 One Plant > 10 One Ship Point >
One Many Many One Many x Many One x One Many -
Many X Many X -
x x Many -
Many Many x -
Many X X x Many -
Many Many -
Many -
Many Many Many Many
Many -
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Attributes & Application Org Units Sales Organization
Attributes Name and Address Language and Currency Factory Calendar Name
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Division
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Sales Area
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Company Code
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Rebate Processing Intercompany Sales Account Determination User Level Authorization
Controls Material Master Sales View ( along with Sales Org) • Other master data such as Conditions • User Level Authorization Name Master Data creation such as Customer & Conditions • A Material belongs to exactly one Division Assignment Only • Pricing • Free Goods • Output Determination • Partner Determination • Document Types Name and • Balance Sheet & Profit & Loss Address statement. Language and • Transfers financial Information to Currency Controlling • Revenue Accounting • Credit Policies • User Level Authorization Name and • Taxation Address • Inter-company Sales Language and • Master data maintenance Currency • User Level Authorization Factory Calendar Name and • Physical Inventory Address • Delivery Processing • Reporting •
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Distribution Channel
Application
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Storage Location
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Shipping Point
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Name and Address Factory Calendar Working hours Lead Time
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3. MASTER DATA USE: • • •
Master data is centrally stored (shared across departments) and processed to eliminate data redundancy. Master Data helps in keeping validation & fast user entry for transactions. One time creation of data which is rarely changed. Only the incremental data required to be maintained
Master data in SD is divided into 5 main areas:
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1. Customer master data:- Customer related information is stored in CMD. The customer master contains all customer-relevant data necessary for processing inquiry, quotation, order, delivery, invoice and customer payments Depending on the Configuration settings, Customer Masters can have System generated or manually assigned numbers
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Mostly customers will belong to one Sales Area. They can also be extended to many other sales areas. During order entry SAP will prompt you to choose the relevant one 2. Material master data:- Material related information is stored in MMD. Same Material is used by different Department, hence material has many Views.
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Material Master has main view (Basic Data, MRP, Purch. Org) and Additional Views (UOM, Text, etc)
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In Material Master some views are maintained at Client Level where as the others are maintained at other Org level like Plant Level.
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The data in Material Masters are either descriptive (name, size, etc) or can control certain functions (material grp, procurement key).
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Material Master has apprx. 800 fields.
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3. Customer material info record:- Customers own description of the material which differs from the original material of the organization. Customer Material Info Record is basically used to store the information about how a particular material is referred by a customer. CustomerMaterial Info Record has priority over Customer Master & Material Master data. For example during Delivering Plant determination the CM Info Record is accessed first
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4. Condition master data: - Condition Master is stored in the form of Condition record (information on prices, texts, partners, substitute materials etc) during sales order processing, the system uses the condition technique to determine these data
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All of the pricing elements that you use in your day-to-day pricing procedures - the prices, surcharges, discounts, freight charges, and taxes - are defined in the R/3 system as condition types. During sales order entry, the system can calculate prices automatically by finding a gross price, deducting all the relevant discounts and adding any surcharges such as freight and sales tax. Depending on the pricing policies of your company, you may be able to change prices manually during sales order processing. You may, for example, be able to enter or change certain discounts within a specified range.
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Condition Master – Example
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5. Additional master data: - It is nothing but out put master data. It is media of communication send to customer thru various ways. Ex: Printout, Email, Fax. Generally SAP looks from the highest level of data to the lowest.
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4. CUSTOMER MASTER DATA The customer master data is the basis for all sales transactions as well as deliveries and payments. A business partner can be a customer and vendor at the same time. You create a link between both the master records by entering the vendor number in the customer master record and the customer number in the vendor master record. Menu path and transaction code for customer creation: Easy access- logistics- SD- master data- business partner- customer- create, change, display. VD01 & XD01 to create and MK01 to create Vendor
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Structure of Customer Master Data: General data: FI & SD Company code data: FI Sales area data: SD General Data Screen: General data does not depend on the company code. 1. Address: transportation zone. 2. Control Data: Vat Registration No. & Vendor 3. Marketing: Customer Classification. 4. Payment Transactions: Name of Bank. 5. Unloading Points: Goods Receiving Hours. OVSC 6. Export Data 7. Contact Person.
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T Code / Views opens General Data Company Code data Sales area data XD01/02/03 Opens Opens Opens VD01/02/03 Opens X Opens FD01/02/03 Opens Opens X
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Important Fields Search Term
Screen
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Application Address Short description used for search helps. All entries are automatically converted into capital letters. There are two such fields for search terms which can be used independently of each other. Transportation Address The system automatically proposes a suitable route by using the Zone transportation zone of the goods recipient in combination with other information about the delivery, such as the Countries of origin and destination, Shipping conditions & Transportation group. Country Key Address The country key contains information which the system uses to check entries such as the length of the postal code or bank account number. VAT Control Data The VAT registration number is used within the EU for tax-exempt Registration deliveries for the "EC sales list". The check rules are defined for each number EU country and cannot be changed. Vendor Control Data In case of Stock transfer one plant to another plant. The plant will need to create as customer & a vendor. The code is maintained in both the masters. Industry Marketing Industry code can be used for reporting analysis. (for example) Industry wise sales of the customers). Customer Marketing The customer can classify as per the reporting requirements for that Classification industry & can be used for reporting.
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Company Code Data Screen: • Account Management: Reconciliation account, the reconciliation account in general ledger accounting is the account, which is, updated parallel to the sub ledger account for normal postings. • Payment Transactions: Payment terms • Correspondence • Insurance
Important Fields Reconciliation Account
Screen
Payment Methods
Payment Transactions
Terms of payment Dunning Procedure Policy Number
Payment Transactions Correspondence
Account Management
Insurance
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Application This is a mandatory field. The reconciliation account in G/L accounting is the account which is updated parallel to the sub ledger account for normal postings. List of payment methods which may be used in automatic payment transactions with this customer/vendor if you do not specify a payment method in the item to be paid. Key for defining payment terms composed of cash discount percentages and payment periods. When the customer needs to be send reminders for payment. Then dunning procedure can be maintained. In case of export credit insurance, the policy number & amount insured etc details are maintained in Insurance screen
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Sales Area Data Screen: includes pricing data, delivery priority and shipping conditions. Sales: Sales Order: Sales District OVR0, Sales Office, Sales Group, Customer Group OVS9, and Item Proposal. Pricing & Statistics: Price Group, Customer Pricing Procedure & Price List Type. Shipping: Delivery Priority, Shipping Conditions, Delivering Plant, Order Combination, Complete Delivery, Partial Delivery & Transportation Zone. Billing: Invoice Dates, Invoice List Dates, Rebates, Inco Terms, Terms of Payment, Account Assignment Group & Tax Classification.
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Partner Functions Screen.
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Screen Sales
Sales group
Sales
Customer pricing procedure Customer Statistics Group Shipping Conditions
Sales
Account Assignment Group Tax classification
Billing
Sales Office defines Geographical aspects of the organization in business development and sales. Used for Reporting. The staff of a sales office may be subdivided into sales groups. Used for Reporting.
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Billing
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Shipping
Determines which pricing procedure the system should apply when you create a sales document for the customer. Specifies a statistics group for this customer and helps determine which data the system updates in the logistics information system. General shipping strategy for the delivery of goods. The Shipping condition along with other entities determines the shipping point & Route proposed by the system. Group of customers with the same accounting requirements. The grouping can be domestic customers, foreign customer, an affiliate customer etc. The indicator with which the system determines output tax for the customer when processing sales and distribution-specific documents.
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Sales office
Application
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Customer Master – CIN Details
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Important Fields
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Additional Component - CIN details enables you to capture the tax related information for the customer. This information can be maintained either in customer master additional component - CIN details or in J1ID – CIN master data transaction
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Customer Master – Transactions Transaction Codes Application SD Main Menu for Customer
XD01
Create Customer (Centrally)
XD02
Change Customer (Centrally)
XD03
Display Customer (Centrally)
XD04
Customer Changes (Centrally)
XD05
Block Customer (Centrally)
XD06
Mark for Deletion (Centrally)
XD07
Change Customer Account Group
XD99
Mass Maintenance: Indus. Matl Master
VXBC
List of Blocked Customers
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CREATE WITH REFERENCE: only data, which can be identical for both master records, is copied, for e.g., Address, Unloading points, Vat reg., Contact person, and Tax classification are not copied. While country, language, account group are. DISPLAYING CHANGES IN CMD: Sales & Distribution: VD04 Several Customers: OV51 BLOCKING A CMD: VD05 DELETING A CMD: VD06.The master data is deleted after all dependent data has been deleted CHANGING ACCOUNT GROUP: XD07. Changes to the account group and the accompanying partner functions can only be made from a lower level to a higher level. MAIN MENU BAR IN VD02 CONTAINS: Extras: Customer Account Group details, Blocking Data (VD05), Deletion Flags (VD06), Text data can be maintained.
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Options for Maintaining Customer Master Data Purpose Blocking Data This contains blocking of customer at company code level and Sales Areas level. The posting Block can be for All Company code or Selected Company Code. The Sales & Distribution Blocks can be for All Sales Areas or Selected Sales Area for Order, Delivery, and Billing & Sales Support Blocks. Deletion flag The customer can be flagged for deletion for All Sales Areas or Selected Company Code or Selected Sales Area. The deletion blocks can be for General Data or Selected company code including general data. Data records such as Customers & Materials can be flagged for deletion but they do not get deleted from the system and can be used to process a transaction. To avoid any confusion, the name / description of these records is changed to . Administrative Data It shows for which account group that customer is created. What levels (i.e. General Data, Company Code Data and Sales Area Data), it has been created by whom & when. Confirmation of Change The confirmation of change status can be given central or at company code level with changes to sensitive field. The current status can be confirmed or rejected. Text The customer master text can be maintained for General data level applicable at client level and / or Company code and / or sales area data level. Customer links to Any documents / records with version applicable for that customer can be Documents linked in the customer master data. Additional Customer SAP provides 10 freely definable fields for attributes & 5 additional fields for Data condition determination & pricing.
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Environment Credit Management (FD32), Customer Material Info Record (VD51), List Documents (sales orders- VA05)
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Options for Maintaining Customer Master Data Purpose Account Changes This functionality allows you to view changes to all fields or changes to the sensitive fields (for example Payment Terms). Sensitive fields need to be configured so in Customizing in FI menu. The changes include Deletions if any. Customer Material This menu option directly takes you to the view of the customer material info Information records VD53 transaction. Credit Management
List Documents
This search criteria takes you to the customer credit management FD33 transaction for the to view the credit limit details of the customer. This functionality allows you to view list of documents ( Inquiries, Quotations, Orders, Contracts, Deliveries & Billing documents) created for that customer.
NOTE: You would not have different customer numbers if your customer is serviced by more than one company code or sales organisations. You may have different data for the same customer no. in different sales areas.
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When you change a master record after having used it to create documents (orders, deliveries, billing documents,), the changes do not affect the documents already created. However, the address in the customer master is an exception. Therefore, if it was necessary, you would have to change the data in the documents manually, except for the address.
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For processing large amount of data, Mass maintenance transaction is used Mass maintenance is possible for a specific table(s) & field(s) within a table Data also can be copied from a reference Customer master If you wish to change a large number of objects simultaneously, you should choose background mode.
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Customer Master – Mass Maintenance (T. Code: MASS or XD90)
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CUSTOMER MATERIAL INFORMATION RECORD: VD51 Customer uses a number or description for a material, which differs from the number or description of your company uses to identify it, you can store the material number or description used by the customer in the customer material information record. Menu path: Easy Access- Logistics- SD- Master Data- Agreements- Customer mat info- Create/ change / display. T. Code: VD51 – Create VD52 – Change VD53 - Display
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Customer material info record is information on a material that applies to a specific customer. This data includes: • The customer-specific material number • The customer-specific material description • Customer-specific data on deliveries and delivery tolerances. • Plant • Delivery Priority • Minimum Delivery Quantity. • Item Usage The data in the customer material info record has priority when master data is copied into SAP. In the sales order the customer material must be entered in the customer material field. Make sure the relevant indicator is set on the sales doc type in order for the system to read the cust mat info record.
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5. COMMON DISTRIBUTION CHANNELS & DIVISIONS: You can define common distribution channels & divisions. This is possible for 2 areas of SAP, for all master relevant data, and for all condition relevant data. Menu Path: SPRO- IMG- SD- Master Data- Define common Distribution Channels & Define common Divisions. (Transaction Code: VOR1 & VOR2 respectively) After creating the organizational structures and relevant master records you want to use as masters, that is, in the distbn channels & divisions you are going to use as a reference, you can group distbn channels & divisions separately for master data (which combines customer master & mat master records), group cond records, or both master data & cond records.
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Let’s say you have a product range that is not different for the four different distbn channels you have (the channels could be telesales, retail, industry & wholesale). Neither is there a diff in the customers’ details when they purchase through one or the other. Thus, you will not want to create a multiple 4 view of CMD & MMR. Merely create the CMD & MMR in one of the distbn channels, such as retail. Then assign the other distbn channels you created in the organizational structure setup to this one. • Don’t forget this means you can only create or change master data in the distbn channel that is being referred. In the scenario above, this means you can only change the data for the retail distbn channel. If you select other distbn channels, you will receive a message “sales area is not defined…” Sales Orgn Dist Chan Descp Dist Chan Cond Descp Dist Chan Cond Descp
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Reference distribution channel for conditions
Procedure:
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Specifies a distribution channel that you want to use as a reference for condition data for other distribution channels.
You can specify one distribution channel as the source of condition data for other distribution channels. You need then only to maintain the data in one place. Example: Distbn Channel 01 02 03 04
Ref Distbn Channel 01 01 01 04
In this example, only distribution channels 01 and 04 have condition data defined. Distribution channels 01, 02, and 03 share the master data that you defined for distribution channel 01. Distribution channel 04 has its own master data. When you create a sales order in distribution channel 03, the system checks the condition data against the data defined for distribution channel 01.
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Reference Distbn Channel for cust and material masters: Specifies a distribution channel that you want to use as a reference for customer and material master data for other distribution channels. Procedure You can specify one distribution channel as the source of customer and material master data for other distribution channels. You need then only to maintain the data in one place.
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In this example, only distribution channels 01 and 04 have customer and material master data defined. Distribution channels 01, 02, and 03 share the master data that you defined for distribution channel 01. Distribution channel 04 has its own master data. When you create a sales order in distribution channel 03, the system checks the customer and material master data against the data defined for distribution channel 01. Sales Orgn Div Descp Div Cond Descp Div Customer Descp Reference division for conditions
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Specifies a division where you can define conditions and share them with other divisions.
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Reference division for customers
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Specifies a division where you can define customer master records and share them with other divisions In this example, only divisions 01 and 04 have customer master data defined. Divisions 01, 02, and 03 share the customer master data defined for division 01. Division 04 has its own customer master data. If you create a sales order in division 03, the system checks the customer master data from division 01. You cannot create customer master data for divisions 02 and 03, since it would never be used.
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You can use this kind of processing to enter multiple materials with various divisions in sales order. You can control the following in Customizing, according to the sales document type: Whether it is possible to enter multiple materials with various divisions for an order. The way the system responds (with or without a warning message). Whether the division on item level is copied from the material master record or whether the division in the document header is also copied into the item.
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You cannot use this kind of processing to enter multiple materials with various divisions in an order. This can be controlled in Customizing, according to the sales document type.
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6. CUSTOMIZATION OF CMD or ACCOUNT GROUP: OVT0 Spro- IMG- Logistics General- Business Partner- Customer- Control- Define Account Group & Field Selection For CMD.
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When you create a master record for a business partner, you must enter an account group. The account group determines: • Which screens & fields are necessary for entering master data • How master record numbers are assigned (externally or internally) • Which partner functions are valid • Default value for pricing procedure indicator • Out put control • Whether the business partner is a one time customer or one time vendor. • Suppressed Entry, Required Entry, Optional Entry & Grayed Out or Displayed.
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NOTE: Don’t forget to allocate this new account group into the list of allowed account numbers for partner determination. The Account groups are defined in Finance.
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No. Range customization for account group: OVZC SPRO- IMG- Logistics General- Business Partner- Customer- Control- Define no range for CMD OVZA: is for no range customization of sales documents.
Can be defaulted in the Master Record
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Customers are created in the following account groups and those are mandatory partner functions required to process sales order. SOLD TO PARTY: - Who places orders. Only needs sales relevant data. However a sold to party can also be created as all the partner functions. SHIP TO PARTY: - Who ships or receives goods. Only needs shipping relevant data, such as unloading points and so on. BILL TO PARTY: - Who receives Bills or Invoices. Only needs Basic data such as address and out put fields. PAYER: - Is the individual or company who settles the Invoices for a service or for delivered goods.
Number Assignment Use: A unique number is assigned to each business partner master record. You can use this number to access the master record, or to refer to the business partner when processing business transactions. Features: The number for a business partner master record can be assigned in one of the following ways:
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Externally: You assign the number. In this case, you define a number range that allows for alphanumerical number assignment. The system checks whether the number you enter are unique and within the number range defined by the account group.
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Internally: The system assigns a consecutive number automatically from a number range defined by the account group.
The account group determines whether external or internal number assignment is allowed for a business partner master record. For account groups 0001 to 0005, for example, only internal number assignment is allowed in the standard R/3 System.
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Number Range: A number range can be valid for more than one account group. You can use the number range to assign different numbers to a head office and subsidiaries. In the standard R/3 System, the account groups for the following customer partner functions are in the same number range so the numbers for these customer master records are assigned consecutively:
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Sold-to party Ship-to party Bill-to party Payer
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Integration A customer's number is unique for all sales areas and company codes. A vendor's number is unique for all purchasing organizations and company codes. You first create a master record for your business partner in one sales area. You then create a second master record for the same business partner in another sales area. In this case, the system identifies the business partner number and does not display the existing general data from the first master record for maintenance. You can use the change and display functions to access the general data. Prerequisites In Customizing you define the number ranges that are to be available. You do this in the following activities: Logistics Basic Data: Business Partners o
Define and Assign Customer Number Ranges
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Define Number Ranges for Vendor Master Records
Accounts Receivable and Accounts Payable o
Create Number Ranges for Customer Accounts
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Assign Number Ranges to Customer Account Groups
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Create Number Ranges for Vendor Accounts
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Assign Number Ranges to Vendor Account Groups
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6. MATERIAL MASTER DATA Material Type and Industry sector Controls: Field Selection, Screen Sequence and Number Range. Material Type: • When creating a material master record, the user must assign the material to a material type. • Materials with the same basic attributes are grouped together and assigned to a material type. • Permits user to manage different materials in a uniform manner in accordance with your company’s requirements. • The material type determines certain attributes of the material and has important control functions.
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Material Types Are: 1. Raw materials 2. Trading goods: HAWA 3. Semi-finished goods 4. Finished products: FERT 5. Services: DIEN 6. Non-stock material: NLAG
Menu path: • Easy access- Logistics- SD- Master Data- Products- Material- Other Material- Create, Change & Display. MM01 • Posting of the Stock: MB1C
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To know the Stock Position: MMBE.
Industry Sectors: construction, chemical, mechanical, Media and pharmaceutical. Unit of Measure:1. Base unit (Piece) 2. Alternative unit (12 pieces = 1 box) 3. Sale unit (Unit relevant for sales process) 4. Delivery unit (Unit in which material can be delivered) Minimum order quantity Minimum delivery quantity
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Item category group: - (NORM) determines how the material processed in the sales order. For example pricing does not take place for free of charge item. The system determines Item category based on Item category group.
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Customization of Material Master Data: T.Code: OMS9 How to delete a Material (MM06): - Easy access –Logistics – SD – Master data – Products – Material – other material – change. Or from main menu bar select material then flag for deletion. How to block a material or in a particular season: - select MM02, go to sales org – 1, under General data, give blocking reason in the field “D-Chain spec status”. Maintaining / extending view of Material: go to T.Code - MM50
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If you go to MM02 Main menu bar, you will find the following information in Environment tab page: 1. Display changes (MM04): - you will find what are the changes have you done to the particular material with date, time, T.Code. 2. Stock overview (MMBE): - stock position details. 3. List of referring materials.
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SD VIEWS ON MMR: Basic data 1, Basic Data2 Sales orgn1, Sales orgn2 Sales General Plant Sales Text Foreign trade 1 & 2 Basic Data 1: Base unit of measure Division Material group Gross weight Net weight Weight unit: gm or kg Basic Data 2: dangerous goods details Sales Orgn 1: Delivery plant Tax classification of material Minimum order quantity Minimum delivery quantity Sales unit X- Distbn. Chain Status: (The cross-distribution-chain material status restricts the usability of the material for all the distribution chains.) D chain specific status: (restricts the usability of the material for the distribution chain concerned.) Cash Discount
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Sales Orgn 2: Item category group General item category group Material Pricing Group Pricing Reference Material Sales General Plant: Availability check Transportation group: rail, road. Loading group: crane, forklift. Sales Text: text about material. Foreign Trade 1 & 2: if the company has got foreign trade. Accounting 1: contains the cost of the product.
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Material Master—Basic data: Basic data is valid for the whole company. The Organizational Levels dialog box does not appear before you access this data screen
Base Unit of Measure Division
Basic Data 1
Material Group
Basic Data 1
X-plant material status
Basic Data 1
Size/Dimensions
Basic Data 1
Material is Configurable
Basic Data 2
Application
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Important Screen Fields Material description Basic Data 1
Text containing up to 40 characters that describes the material in more detail. This defaults from Basic Data 1. Unit of measure in which stocks of the material are managed. This defaults from Basic Data 1. This filed also appears in the Sales Views and is generally populated from there.
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Basic Data 1
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Key that you use to group together several materials or services with the same attributes. This is a very important field for reporting & analysis It restricts the usability of the material for all plants, that is, it defines whether a warning or error message is displayed if you include the material in a particular unction for Procurement, Production etc. It’s a Text field that you can use as you like. The filed length is 32 characters. If this indicator is set, you can assign a variant class to the material, making it possible to use it as a configurable material. The indicator is defaulted for material type KMAT
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Material Master – Sales Views Screen Application Enter a value in this field only if you want to use a unit of Measure differing from the base unit of measure. This plant is automatically copied into the sales order item as the default value The indicator with which the system determines output tax for the material when processing sales and distributionspecific documents. Specifies a statistics group for this material and helps determine which data the system updates in the logistics information system.
Sales: Sales Org. 1 Sales: Sales Org. 1 Sales: Sales Org. 1
Specifies whether and how the system checks availability and generates requirements. A grouping of materials that share the same route and transportation requirements. A grouping of materials that share the same loading requirements.
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Sales: General/Plant Sales: General/Plant
Group of materials with the same accounting requirements. Materials’ grouping that helps the system to determine Item Categories during sales document processing.
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Sales: Sales Org. 2 Sales: General/Plant
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Account assignment group Item category group Checking Group for Availability Check Transportation group Loading group
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Tax classification material Material Sales: Sales Statistics Group Org. 2
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Material Master – Environment
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Options in Material Master Data Purpose Defaults Data This option in Material Master allows you can set Industry Sector Default, Hide Industry Sector in Industry Sector, Default views & Default the organizational data for the material. Information on This is the only place wherein we can see the material details in change or Material display mode of the transactions. These details are Industry sector, Material Type, Created by, Creation date, changed by, changed date, View wise status information such deletion flags or locks for a material. Display Changes List of all change documents for the material Stock Overview This search will directly take you to MMBE transaction for stock display at plant & storage location level.
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Material Master – Additional Data: Descriptions in different languages, Units of measure, Basic Data Text etc can be maintained in Additional data
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Adding Division does not multiply the material master views. But it does multiply the customer master views. Division creates material master. Division is a field in material master; it is not an organizational unit.
Application
MM01
Create Material
MM02
Change Material
MM03
Display Material
MM04
Display Material Change Documents
MM06
Flag Material for Deletion
MM17
Mass Maintenance: Indus. Matl Master
MM50
List Extendable Materials
MM60
Materials List
MM70
Select Materials Flagged for Deletion
MMSC
Enter Storage Locations Collectively
MMAM
Change Material Type
MR21
Change Material Price
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Material Master – Transactions
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8. SALES DOCUMENTS Purpose:
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The sales department of any organization carries out a wide range of activities, each involving a great deal of variation in and of itself. This range from processing requests for quotations, sales orders to pricing, credit and product availability. The employees in a sales department are involved in many activities such as - interacting with customers - answer to their queries, - provide them estimates, - give updates of availability of products, - offer appropriate products based on the buying pattern of the customer, - perform order entry in the system and - Maintain basic information about the customers, products and services that they consume.
Challenges: The challenges in the Sales are: • Different pricing for different customers • Delivery date confirmation with assured quantities • Online status update and Document history • Tracking of Materials and customer accounts • Updating of Information system to plan and control of sales • Monitor customer credit worthiness • Monitor follow up activities from sales support
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Definition: Sales related business transactions are recorded in the system as sales documents.
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These are grouped in to 4 categories: • Pre-sales document: Inquires & Quotations. • Sales Orders: OR/ RO/ CS. • Outline Agreements: Contracts & Scheduling Agreements. • Customer Complaints: Free of Charge Delivery (FD), Free of Charge Subsequent Delivery (SDF), Credit Memo (G2), Debit Memo (L2), Returns (RE).
This slide represents the relationship between the processes in sales order processing in the SAP System. The sequence from top to bottom represents the order of events in the sales process. The boxes represent sales and financial accounting documents. Sales activities and promotions are documents for sales support in pre-sales. Sales documents are documents that are entered during pre-sales and sales order processing. Inquiries, quotations, contracts, scheduling agreements and standard orders are examples of sales document types. Outbound deliveries, transfer orders and shipments are documents in shipping processing. The goods issue document contains changes involving stock and is the basis for the relevant accounting documents. The billing document is a document in billing and is the basis for the relevant accounting documents.
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The left and right sections of this slide represent key interfaces between Sales and Distribution and the Sales Information System (SAP data warehouse), Materials Management and Production Planning.
Sales order: Sales order is a contractual agreement between a organization and a customer about delivering products or providing a service for defined prices, quantities and times Sales Orders normally contain information on Customer, Material, customer material information, pricing conditions for each item, Delivery dates and quantities for each item, Shipping processing information and Billing information.
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STRUCTURE OF SALES DOCUMENT: All sales documents have basically the same structure.
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Header Data:(VBAK):
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Item Data :( VBAP): This is controlled by sales item category, such as TAN.
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Schedule Line Data :( VBEP): This is controlled by schedule line category, such as CP.
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FUNCTIONS OF SALES DOCUMENT: During sales order processing, the system carries out basic functions, such as: •
Determining the delivering plant, Shipping point & Route automatically
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Availability check System’s ability to automatically determine a delivery (promise) date for a sales order
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Delivery Scheduling – determines lead times for delivery processing.
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Transfer of requirements - determines the item requirements to be passed to materials planning (MRP)
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Pricing- indicates how a price should be determined for the sales order item.
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Sales Information System - dictates how the sales information system is updated with sales order information to plan and control sales.
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Checking Credit Limits Output Text
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Types of Sales Documents used in Business process 1. INQUIRY (IN): Non-Binding Agreement: For example, a customer inquires whether we have a certain product in our warehouse, how much it will cost, or whether the product will be available for a certain date. The inquiry will not be sent to the customer. A customer’s request to a company that they provide a quotation or sales information without obligation. Doc Type: IN, Trans Code to Create inquiry: VA11. The standard item category for inquiry is AFN. 2. QUOTATION (QT): Binding Agreement from : A quotation presents the customer with a legally binding offer for delivering a product or service within certain fixed conditions, such as the validity period and the terms and conditions.
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Doc Type: QT, Trans Code to Create Quotation: VA21. The standard item category used in quotation is AGN.
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3. Out Line Agreements: These are further divided into
(A) SCHEDULING AGREEMENTS: Outline agreements with determined schedule lines. A delivery note is created directly from the scheduling agreement (release order is not required)
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A customer scheduling agreement is an outline agreement with the customer containing delivery quantities and dates. Trans Code: VA31. Doc Types: DS- Scheduling Agreements, COB- Sch Agreements BR, BL- Sch Agreement w/del schedule.
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(B) Contracts (VA41):- Outline agreements with fixed quantity or value that a customer promises to order over a specified period of time, as well as the price involved. It requires a release order to make a delivery. Pricing (procedure and/or discounts) is copied to release order from the contract
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Delivery quantities and specific dates are not mentioned. Ex: 600 quantities in 3 months. Types of contracts. 1. Quantity contracts. 2. Value contracts 3. Service contracts. Master contracts. 5. Sub contracts.
4.
4. Standard order (OR): Normal standard order contains, Sales order – Delivery – PGI – Invoicing or Billing. 5. Rush Order (RO): It means immediate delivery, but account is not settled immediately. Sales order –PGI – Invoicing or Billing. 6. Cash Sales (CS): Known as plant sales, means stock supplied immediately and account is settled immediately. Delivery and Picking done at background by the system. Sales order –PGI – Invoice. 7. Consignment stock processing: - Keeping Company’s stock at customers place. Consignment Fill up (CF): Ex: Assume that company kept 100 boxes of Crocin tabs at NIMS hospital. But it is property or owner ship is with company. This is called as consignment Fill up. No Billing will be done here. Consignment Issue (CI): Invoice is raised whatever the consumed quantities by NIMS. EX: 15 boxes of crocin sold by NIMS hospital. So Bill will be raised for 15boxes only.
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Consignment Return (CONR): Stock return by the customer to NIMS hospital. Ex: 2 boxes of Crocin returned by customer to NIMS. Consignment Pick up (CP): what ever the remaining quantity and received returns by customers is send to company by NIMS. That is called consignment pick up. Ex: 87 boxes send back to company.
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8. Third party order processing: Documents used OR / RO. EX: LG show room sells only TVs, but received order from a customer for TVs and stabilizers. LG show room informs to a Vendor to supply stabilizers directly to customer. Bill sends to LG and LG sends bill to customer. 9. Individual purchase order processing: EX: LG show room sells only TVs, but received order from a customer for TVs and stabilizers. LG show room gets stabilizers from a Vendor. And LG show room sends stock of TVs and Stabilizers to customer. 10. Inter company sales: with in the company sales organization will bill to the other sales org and sales org supplies to customer. Documents used OR or RO. 11. Returnable package (RP): EX: Coke / chemicals / Gas. Customer has to return the container to the company. Coke Company supplies to distributor. He was charged only for drink not for bottle. Bottle has to returned by distributor to company. 12. Make to order: Once company receives order from customer then only it starts manufacturing the product. Ex: Boeing Flights. 13. Sales Returns (RE): Goods returned by customer due to non moving or damaged. 14. Credit memo request (G2): if customer requests to raise a credit memo for returned stock. 15. Debit memo request (L2): If company charges any extra price to customer, then company raise a debit memo request. 16. Free of charge delivery (FD): Ex. Sending Free samples by company to Drs or customers without charging price. 17. Subsequent free of charge delivery (SDF): If customer requests for replacing any other product towards stock returned by him.
TYPES OF SALES DOCUMENTS: VOV8 OR CS QT B1 CD CF CONR
Standard order Cash sales Quotation Rebate credit memo request Free of charge delivery Consignment fill up Consignment return
RO IN DS B2 SDF CI CP
Rush order Inquiry Scheduling agreements Rebate correction request Subsequent free of charge del Consignment issue Consignment pick up
Sales Document Type - Controls
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DOCUMENT FLOW (Details)
Doc Type Sales Doc Delivery Billing
BV BVN BV BVN BV
RO REN LF REN F2
S1
SV
Parameter Ref Doc Doc Type Item Catg Dely Type Dely Item Cat Billing Type Billing Item Cancel Doc
Fill-up
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RE
RE REN LR REN RE REN
FD KLN LF KLN -
SDF KLN LF KLN -
OR TAD
TAN/TANN
F1
Pick-up
Issue
IN, QT, OR… OR
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CS
RO
LF
BV BV
Ord / Bill
Return
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Returns
Contract Gen Value
WK1 WKN
MatlRelated
Credit Memo
Debit Memo
Invoice Correct
Ord / Bill
Ord / Bill
F1, F2 RK
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G2/L2
Bill Plans Service
Periodic
Milestone
WVN
TAO
WK2
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Cancel
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Service
COMPLAINTS Subs Dely FoC Dely FoC
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Doc Type Item Catg Dely Type Delivery Dely Item Cat Billing Type Billing Billing Item Cancel Cancel Doc Important Features
IN, QT, OR… OR TAN LF TAN F1, F2
Free Goods
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Ref Doc
SALES Rush Order
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Cash Sales
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Sales Doc
Parameter
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Doc Type
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DOCUMENT FLOW OR SALES ORDER CYCLE: Sales Order Cycle starts with: Inquiry- Quotation- Sales Order- Delivery- Invoice- Returns - Credit memo or SDF.
What is a Sales order? A sales order is a contractual agreement between a sales organization and a customer (sold to party) for the supply of services or products over a specific period or time with certain quantities. VA00 is transaction code used for Sales overview screen.
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Normal sales order process has got the following procedure. Sales order – Delivery or out bound delivery – Picking – Goods Issue (PGI) – Billing or Invoice.
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The following mandatory information is required to fill in the initial screens. 1. To create a Sales order (VA01/02/03):Order type: Sales organization: Distribution channel: Division:
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2. To create Delivery or Out bound delivery (VL01N/2N/ 3N): Shipping point : Selection date : (Automatically come from sales order. If it does not come give selection date as requested delivery date found in sales order screen) Order : (AUTO)
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3. Picking or Transfer order (LT03): Wear house No : Plant : Delivery : (Auto) 4. Goods Issue (PGI) (VL02N): Out bound delivery: (Auto) 5. Invoice or Billing (VF01): Invoice No: (Auto).
Note: To check status: Go to VA02. Enter then click on “Display Document Flow” icon.
Sales - Transactions Transaction Codes Application VA11 / 12 / 13
Create / Change / Display Inquiry
VA21 / 22 / 23
Create / Change / Display Quotation
VA41 / 42 / 43
Create / Change / Display Contract
VA31 / 32 / 33
Create / Change / Display Scheduling Agreement
VA01 / 02 / 03
Create / Change / Display Sales Order
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Inquiry:
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Customer contact records which capture pre-sales information • Can be for material or text items • Serve as system references for future activity • Serve as follow up for business that did not happen • The validity period can be used as a processing limit
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Quotation A quotation can be created with or without reference to an inquiry Quotations are offers from a sales area to a customer for delivering materials or providing services under specified conditions.
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Quotations are legally binding throughout the given validity period.
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Application Main Screen Each sales order is assigned to unique sales area (sales organization, distribution channel, or division). If there is master data for the sold-to party in several sales areas, a selection screen appears where you can choose the sales area you require.
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Important Fields Sold to Party
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Sales Order – Header
Order type Blocking Document
Reason for Rejection
Account Assignment category
If there are several possible sold-to parties for the ship-to party, the system displays a selection screen with the possible alternatives. Sales View A classification that distinguishes between different types of sales document. Sales View In sales orders, you can block the transactions for shipping or for billing. Billing block can be set in the document header, and also in the individual item. Sales View You can reject items in sales documents. This gives the items the status of completed. The business transaction thus be concluded without deleting the item.
Billing
Also a reason for rejection allows you to find out what your customer thinks of your products during a certain time period. Using the account assignment criteria as a variable G/L account can be determined
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Shipping Point
Shipping condition Route
Pricing
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Application Sales For each material in the sales order, the system automatically proposes data from the relevant material master records, such as data for pricing, delivery, scheduling, availability check, tax determination, weight and volume determination. Sales A plant is required to source inventory for a sales order. The plant can be defaulted on the priority to customer material information record, then look in the ship to party customer master and then the material master. Shipping The shipping point is automatically determined on the combination of the delivering plant based on plant determination or manual override of the sales order item, the shipping condition of the sold to party customer master record (Sales Area Data, view: Shipping) and the loading group in the material master (Sales: General/Plant Data View) Shipping The shipping condition in the customer master is used to define customers delivery requirements (Sales Area Data, view: Shipping). Shipping A Route is transportation path of an outbound delivery from the delivering plant to the ship-to party. SAP R/3 uses four data element as search keys for determining the route automatically. These data elements are : The departure transportation Zone found in customizing for the shipping point definition, the shipping condition found in the customer master of the sold party (Sales Area Data; Shipping view), the transportation group found in the material master (Sales: General/Plant Data View) and the destination transportation zone found in the ship-to party master data record (General/Plant; Address view) Condition The PR00 is defined as the mandatory pricing condition.
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Delivering Plant
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Important Fields Material
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Sales Order - Item
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Sales Order – Environment
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Sales Order – Enhanced Functions
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Contract A contract includes quantity contracts, value contracts & rental contracts.
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Contains fixed delivery dates and quantities. Once the scheduling agreement is due for delivery, you can create the delivery normal or by using a delivery due list
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Scheduling Agreement:
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QC – Quantity Contract, WK1 – General value Contract, WK2 Material Value contract, QP – Rental Contract and SC – Service and maintenance
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Sources for Document Data
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During data input for sales documents, the system supports you by analyzing various sources of information. The aim is to make creating documents easier by using default values or fixed reference data. Possible sources of information are: Master data: The system reads the master data defined for a customer, a material, or a pricing condition. For example, the specific terms of payment for a customer can be found. The sales information from a material master can serve as the source of the delivering plant. Existing document data: Document data that has already been entered or determined automatically by the system can be used to enter additional documents data. For example, the delivering plant is used - along with other information - to determine the shipping point. Customizing: Default values for creating documents can be defined in Customizing. For example, you can set a default value for the delivery date or configure a delivery or billing block in the sales document type. You can also define strategies in Customizing for determining document information based on combinations of several criteria (for example: determining the shipping point through a combination of delivering plant, loading group, and shipping condition). Hard-coded controls: Hard-coded controls can be used to weight the different sources of information (example: proposing plants automatically).
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Sales processes are controlled by Customizing for sales documents. Customizing for sales documents can be done at header, item or schedule line level, depending on the structure of the document. The instruments for control are the sales document type, item category and schedule line category. You need to make settings in Customizing so that the item and schedule line categories are determined automatically in the sales document. To complete the setup of a business process in your system, you need to configure the system for forwarding data from the sales document to subsequent documents according to your needs. You can do this in copying control.
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The diagram contains examples with settings as they are provided in the standard R/3 System. Every item in a sales document is controlled through its item category. This enables you to • Use different item categories in different sales document types, • Realize different business processes for each item in the sales document. You can configure the functions of the item categories according to your requirements. For example: • You want schedule lines for a free-of-charge item in the sales order (item category TANN) but You do not want to carry out pricing for this item or transfer it to billing. • You do not need pricing or delivery quantities and dates (that is, schedule lines) for a text item (Item category TATX) in the standard order. However, if you need the item in the delivery or billing documents, you can indicate it as relevant for delivery or billing.
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Sales Document (VOV8) DETAILS:
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Item No. Increment: how line items no should increase in documents. Check Division: Controls how the system reacts during sales order processing when a division that is entered or proposed at the item level differs from the division in the document header Item Division: Indicates whether the division at the item level is proposed from the material master record of the item or whether the division you enter in the sales document header also counts for all items. If you mark this field, the system proposes the division from the material master record of the item. If you leave the field blank, the division in the document header also counts for all items. Probability: IN: 30%, QT: 70% and Order: 100% Check Credit Limit: how system should respond to check during order processing Read Info Record DoPP: the key that specifies the pricing proc for this type of sales doc. Display Criteria: should system display only main or sub items or all items in sales doc F.Code Overview Screen: after you enter the data in the initial sales doc screen, which overview screens the customer wants. Quotation Messages: Incompletion Message: check this field & u can’t save an incomplete doc. Delivery Type: LF for OR and RO. BV for CS Delivery Block Shipping Conditions: specify a value here and the value in CMD is not taken. Delivery Related Billing Type & Order Related Billing Type Billing Block Proposes Del Date: Indicates whether the system automatically proposes the current date as the delivery date. Business Transaction: This entry makes it possible to use the availability check settings in the APO planning system for this order type. Use: Using the business transaction, you can control in which business contexts a rule-based availability check is carried out. A rulebased availability check is therefore, as a rule, not sensible for a rush order. When called from the ERP system, this value is created using the order type for the sales order from which calling takes place. Lead Time In Days: specify the number of days after the current date that the proposal for the requested delivery date in the sales doc should be. Immediate Delivery.
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1) COMPARISON BETWEEN DIFFERENT SALES DOCUMENTS Imp Fields
Std Ord
Rush Ord
Cash Sls
Retur ns
Cr Req
Dr Req
Cons Fill
Cons Issue
Cons Pickup
Cons Retur ns
Dely FoC
Subs Dely FoC
Doc Type
OR
RO
CS
RE
CR
DR
CF
CI
CP
CR
FD
SDF
-
-
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Yes
-
-
-
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-
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Yes
Yes
LF
LF
BV
Mand Ref Item Divn Ship Cond Immd Dely Dely Type
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Yes
01
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Bill Type
F2
BV
RE
G2
L2
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F2
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F2
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9. SPECIAL BUSINESS TRANSACTIONS (Cash order & Rush order sales)
1) RUSH ORDERS
Rush Order (RO)
Created Automatically
Delivery (LF)
Billing
Transfer order Invoice
Rush order is used when the customer wants to picks up the goods immediately or when the goods have to be delivered the same day. •
The delivery document is created automatically as soon as the order is placed.
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Billing is processed in the standard way-based on the delivery. Availability check is carried out, and only available quantity is delivered.
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2) CASH SALES
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Created Automatically in the ack
Delivery (BV)
Billing (BV)
Transfer Order
Invoice
a) b) c) d) e) f) g)
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(RD03)
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Immediate Delivery, Billing Date = Today Invoice printed directly from Cash Sales Order with same number as Cash Sales Order. Order-related Billing. Picking & Availability Check normally not necessary. Collective PGI. Billing can be done only after PGI. For Invoice: No Output, no new Price Determination, Order type – BV, Billing type – BV, Delivery type – BV, Special Account key -- EVV is used for cash sales. Billing type “SV” is used for cancellation of cash sales. For cash sales payment is made when the goods are ordered. The Invoice is also printed at the same time The order, Delivery and picking are created in one step, although you receive documents for each. It is an order related billing (F1) since delivery is created automatically. The Goods Issue is posted at a later time as separate transaction, so the customer does not have to wait. It has own output type “RD03” which allows you to print an invoice from the order. Pricing type “D” is used in Copy control. In Cash sales customers belongs mostly one time customer. They are created in the account group of “CPDA”. Cash sales triggers “Petty cash account “ or “Cash settlement account” , not to the customer account.
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10. ITEM CATEGORY The item category controls what the item does in the sales doc & in any later processing for that business transaction. It controls the sales doc & affects the schedule line category.
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A classification that distinguishes between different types of items (for e.g., free of charge items & text items) & determines how the system processes the item. E.g., if you identify an item as a free of charge item, you tell the system, in this case to ignore the normal pricing procedure.
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The system uses an item category to process a material differently in each sales doc type: in inquiry, the standard item is priced but not relevant for delivery. For the free of charge item, no pricing & no delivery. But in sales order both the items are relevant for delivery and pricing is carried out for the standard item. Standard Item: (AFN: Inquiry), (AGN: Quotation), (TAN: Sales Order)
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Free of Charge Item: (AFNN: Inquiry), (AGNN: Quotation), (TANN: Sales Order)
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Text Item: (AFTX: Inquiry), (AGTX: Quotation), (TATX: Sales Order)
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Item Category Controls: document, billing, pricing, delivery/shipping & incompletion log.
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Whether the item refers to a material master record (or is a text or value item) Whether schedule lines are allowed Whether pricing is relevant Whether billing is relevant Which data is required for the item (will appear in the incompletion log)? Whether the business data in the item can be different to that of the doc header. Defining Item Category: VOV7: SPRO- IMG- SD- Sales- Sales Document- Sales Document ItemDefine Item Category.
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The Item Category for the sub item on a sales document is determined by Sales document type, Item category group and Item category of higher level item
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Item Type: whether standard or text or value item Completion Rule: The rule for establishing when a quotation or contract is complete. Business Data Item: whether business data in the item can be different to that of the doc header. Relevant for billing Schedule Line Allowed: Items that are relevant for del will always have schedule lines. Order Quantity = 1 Item Relevant for Delivery: we need to check this field in item cat: TATX. Create Delivery Group: You use a delivery group to determine a common delivery date for all the items that it contains. Especially used in BOM. Determine Cost: Indicates whether, during pricing, the system determines the cost (stock value) of a sales document item. Relevant for weight and volume Credit active. Pricing: In the case of text items, however, pricing would not make sense.
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Types of Item Category BVN TAB G2N TAK KBN KRN TAQ TAE BANS
Cash Sale Individual order purchase Credit memo Make to order Consignment fill up Consignment return Extent delivery- BOM Explanation- BOM Third party Item cat group
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Third party Returns Debit memo Configurable material Consignment issue Consignment Pickup Extent delivery- higher lever item in BOM Value Item Individual purchase Item category group
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Text items do not require processing for pricing, taxes & weight calculations Items that are not relevant for del, such as credit memo requests, do not have schedule lines. Usually, items that do not have schedule lines cannot be copied in to a delivery. Text items are an exception.
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To configure Item Categories: IMG ->Sales and Distribution -> Sales -> Sales Documents -> Sales document Item -> Define Item Categories Example AGN TAN TANN
Text item in Order
TATX
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Functions Standard item in QT Pricing, Schedule Line Allowed, Not relevant for billing, Standard item in Order Pricing, Schedule Line Allowed, Relevant for billing Free of Charge Item in order No pricing, Schedule line allowed, not relevant for billing
•
No pricing, No schedule lines, relevant for billing
You do not need pricing or del quantities & dates (i.e. schedule lines) for a text item (item cat: TATX), in the standard order.
COMPARISON BETWEEN DIFFERENT ITEM CATEGORIES Item Cat
AGN
TAN
TANN
TAP BoM H
TAQ BoMH
TAE BoM S
TAD
TATX
Business It
TAK
KLN
TAO
WVN
Mile
Perio
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Pricing
Y
Std
Sch Lines Item Rel Dely Bill Relev Struc Scop
Y
Y
100% Disc Y
-
-
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Dely -
N
Y
N
Y
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Y
Y
Y
Y
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Y
Dely -
Dely 1 Lvl
Ord 1 Lvl
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Deter. Cost
Y
Y
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Y
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ITEM CATEGORY DETERMINATION Depending on the item category group that you apply & the sales doc type you are processing the system automatically proposes an item category in the document. Document type OR OR OR
Item cat group Usage Higher level item category NORM TAN NORM NORM FREE TAN
Default Item category TANN TAN TANN
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SPRO- IMG- SD- Sales- Sales Document- Sales Document Item- Assign Item Category (VOV4)
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11. SCHEDULE LINE CATEGORY
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Subdivision, according to date & qty, of an item in a sales doc.
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The schedule line category is used by the system to determine if the item is relevant for delivery. Only those items that have schedule lines assigned will have a delivery created for them. SPRO- IMG- SD- Sales- Sales Documents- Schedule Lines- Define Schedule Line Categories.
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Schedule Line Category Controls
• • • • • • •
AT: Inquiry schedule line BN, CN, D0: No MRP & No Availability Check CP / BP/E1/C1/F1: MRP & Availability Check BV & CV: same as BN & CN, but MRP passed on for info purpose Goods receipt is posted for the schedule line DN in a return doc --------------------------------------------------------------------------------------CN, CP, CT, CV: relevant for delivery, other Sch line cat are not
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CP, CV, CN: sales order schedule lines CP: deterministic MRP CV: consumption MRP CN: no leg CS: third party item BN: quotation DN: returns BP: deterministic MRP BV: consumption MRP CT: no inventory mgmt/ no goods issue ------------------------------------------------------------------------------------------------------Movement types: SD related movement types from 561.
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602 Returns 301 Plant to plant stock transfer 452 901 634 632
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Goods issue delivery Posting the stock in the plant Return of the stock transfer Returns from customers GI Returns to vendor Consignment fill up Consignment Issue
Returns from customer reversal Return of stock to a supplier Consignment Return Consignment Pick up
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601 561 302 451 661 631 633
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The schedule line cat depends on the item category of the item & MRP of the material. The MRP type is found in the MMR, MRP 1 screen.
MRP type PD ND ND
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Item Category OR TAN IN AFN QT AGN
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SPRO- IMG- SD- Sales- Sales Documents- Schedule Lines- Assign Sch Line Categories Schedule line cat Manual Sch Line Cat CP (item rel for del) AT BN
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12. SALES ORDERS Sales Order is a contractual agreement between a sales orgn & sold to party abut delivering products or providing a service for defined prices, quantities & times. Standard Functions during Order Processing:
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Changes at Item Level: Select Line Item & Go To & Select
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Pricing Availability check (if this function is defined in MMR) Transferring requirements to material planning (MRP) Delivering scheduling Shipping point & route determination Checking credit limits.
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Making Fast Changes:
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Using this function, you can change the following data for several or all items: Reason for rejection Delivery block Billing Block Delivery date Delivery priority Plant. Choose Edit—Fast Change of… & the relevant process. Transaction Code VA01, 2,3 VL01N, 2N, 3N LT03 VL02N VF01, 02, 03
Standard Order Order Delivery Picking Goods Issue Invoice
Rush Order Order --Picking Goods Issue Invoice
Cash Sales Order ----Goods Issue Invoice.
Type VA02 & click on Display Document Flow.
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Blocking Sales Orders You can block sales orders for the following subsequent functions: •
For shipping: The system does not let you create a delivery for a sales order that is blocked for shipping. You receive an error message telling you that the order is blocked for delivery.
•
For billing:
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The system does not allow you to create a billing document for a delivery that is blocked for billing in the underlying sales order. When you try to create individual billing documents, the system enters a message in the relevant log. In the case of collective processing of billing documents, the delivery is not included in the billing due list. In addition, it is possible to block sales document types for certain customers, so that youi can prevent certain types of sales documents being created for a particular customer.
Setting a Delivery Block
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To display this information at header level, choose the Shipping tab page from the overview screen. You can set the delivery block in the Delivery block field. You can set the delivery block at item level on the overview screen in the Shipping tab page, by selecting the item and entering the block in the Delivery block field in the table. To enter a delivery block in a schedule line, select the appropriate item on the Item Overview tab page and then choose Goto ® Item ® Schedule lines. You can set a delivery block for the schedule line in the Delivery block field in the table.
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You can set a delivery block at header level as well as in the individual items and schedule lines:
A delivery block at header level is only effective if it has been assigned to the corresponding delivery type in Customizing (table TVLSP). Regardless of this assignment, the delivery block is still effective at schedule line level.
Setting a Billing Block You can set a billing block at header level and for the individual items: • •
To set the billing block at header level, choose the Sales tab page from the overview screen and activate it in the Billing block field. To enter a delivery block for an item, select the appropriate item on the Item Overview tab page and then choose Goto ® Item ® Billing. You can then activate it in the Billing block field.
You can also use the fast change function to set delivery and billing blocks at header and item level. For more information, see Making Fast Changes.
Blocking Sales Document Types It is also possible to customize your system so that specific types of sales documents are blocked for specific customers. For more information, see blocking a Customer Master Record.
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BASIC FUNCTIONS
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13. PARTNER DETERMINATION: VOPA
The business partners that exist in the marketplace are represented with a partner type in the R/3 System. Partner types AP, KU, LI and PE are defined in partner processing for the Sales and Distribution application module. These are defined as follows: AP Contact person KU Customer LI Vendor PE Personnel In other applications (such as Service Management) different partner types have been defined (for example, O for organizational unit, S for position, A for work center).
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While the partner types allow us to distinguish between different business partners, the partner functions represent the roles they play within the business transaction. For example, different customers (customer partners) can assume certain roles in a business transaction. The customer who places the order does not necessarily have to be the same customer who receives the goods or the customer who is responsible for paying the invoice. Assigning partner functions in the SAP system determine the function(s) of particular partners in the sales process. One partner may take on several functions. In the simplest case, all the partner functions within the customer partner type would be assigned to one person. In other words, the same customer would be the sold-to party, ship-to party, and payer and bill-to party. You can enter contact persons for a customer directly in the customer master and they are automatically assigned to that customer. The contact person can also be assigned to another customer, for example, in a consultant role. The forwarding agent is an example of a vendor. Employees of your own company (such as sales representatives or clerks) are managed in the employee master records. They can assume partner functions of partner type "Personnel", such as partner function ER, responsible employee. A business partner like Customer can play many roles (functions) in a transaction The partner functions like of Sold-to Party, Ship-to Party, Bill-to Party and Payer are essential for sales document processing. •
Sold-to Party: Sold- to party is the business partner to whom the goods are sold. It needs only sales relevant data in customer master
•
Ship-to Party: Ship-to Party is the business partner to whom the goods are shipped. It needs only shipping relevant data such as unloading point
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•
Bill-to Party: Bill-to Party is the business partner to whom the bills is sent, needs only the basic data such as address and output procedures
•
Payer: Payer is the individual or the company who settles the invoice
You can do partner determination in the following areas.
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Customer master Sales document Header Sales document Item Delivery Transport Billing Header Billing Item Sales Activities.
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Customer (KU)
Partner function, e.g. Sold-to party (SP)
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Payer (PY)
Customer number
Customer master record
Vendor number
Vendor master record
Personnel number
Personnel master record
Contact partner number
(Created in customer master record, no master record of its own)
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Bill-to party (BP)
Type of master record
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Entry expected from system
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Partner type
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Partner Types and Assigned Partner Functions
Forwarding agent (fwdg agent)
Human resources (HR)
Employee responsible (ER)
Ap
Vendor (V)
Sales personnel (SP) Contact person (CP)
Contact person (CP)
No new partner types may be added to the partner types given by the system. Activities: If a partner belongs to different partner types, you must create a corresponding amount of master records for this partner. If, for example, a customer company also delivers goods to you, you must create a customer master record as well as a vendor master record. Menu path: SPRO- IMG- SD - Basic Functions- Partner Determination: Partner Determination is maintained for various Partner Objects
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Define partner functions Define & Assign Partner Determination Procedure Assign Partner Function on the debit side of the account group 1. Defining Partner Functions: here we must not define any partner functions. If we check the field unique that partner function has to be unique in the CMD. 2. Assigning the Partner Functions to the Account Group: on the main menu bar, you will find tab page called Environment—Account Group Assignment. Go to new entries and assign the required partner functions to the required account group & save it. 3. Defining the Partner Determination Procedure: replace AG with your 4-digit code. Double Click on the 4-digit code and select the mandatory and not changeable partner functions. (Click on partner procedures). 4. Procedure Assignment to Account Group: assign partner determination procedure to the account group. (Click on procedure assignment).
Ap
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14. CONDITION TECHNIQUE STEPS
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The condition tech refers to the method by which the system determines elements from information stored in condition records. The cond tech is used by SAP to find a choice from among a number of alternatives. SAP makes the choice based on conditions, hence the name Cond Tech. 1. Condition table: combination of fields that identifies a condition record. The fields that you select are called Selected Fields. The fields from which you make your selection are called Allowed Fields or Field Catalog. (Most general to most specific). Cond table contains the key fields for maintaining cond records, i.e., cond records are stored in cond table. 2. Access Sequence: search strategy with the help of which the system gets valid cond records. It contains the required cond table in required order (in which sequence should the system search) (most specific to most general is the sequence) 3. Cond Type: is a representation in the system of some aspect of your daily (pricing) activities. 4. Maintain Proc: arranging Cond types logically. 5. Determination Rule: linking your proc, e.g. to cust, through CuPP. 6. Condition Records: where data is stored and retrieved.
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15. OUTPUT DETERMINATION Output is a form of media from business to one of its business partners. The output can be sent to any of the partners defined in the document. Outputs are usually in the form of Order Confirmations, Freight List, Delivery Notes, Invoices & Shipping Notifications. Determining form of output is output determination. Output is a Means of communication for exchanging information between partners & systems. Can be transmitted for different types of Sales Documents via different transmission methods. Available at Header and Item level.
Out put determination can be done in the following areas.
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Billing documents. Delivery documents Sales documents Sales activities Picking lists Shipping units. Groups (Type of collective processing) Shipments
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Remark
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Step Description Maintain Condition Tables / Accesses Assign Accesses to Access Sequence Assign Access Sequence to Output Type Assign Output Types to Procedures Assign Procedure to Document Types
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Step
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1) OUTPUT DETERMINATION PROCEDURE Maintained separately for • Sales Documents (Header / Item) • Billing documents (Header) • Delivery Documents (Header / Item)
Assign Output Type to Partner Functions
To control which Output Types can be sent to which Partner Functions
2) ACCESS SEQUENCE Priority
Conditio n Table
Access Description
Require ment
Key Fields for search strategy
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Date / Time
Language
Independent 1) As per periodically run program 2) User-specified time 3) Explicit Request Dependent 4) Immediate (as soon as doc is posted)
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3) CONDITION RECORDS FOR EACH OUTPUT TYPE Transmission Partner Function Medium Partner Function from Document to whom to send How output is Output. produced: Possible to create 1) Print output without Partner. 2) Fax 3) Telex 4) External Send 5) EDI
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Program to run Output is RSNAST00.
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4) COMMUNICATION STRATEGY Used in case Transmission medium is 5 (External Send) to define how system should find output address from a sequence of Communication Types (Email / Fax number / Postal Address).
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5) OUTPUT PROCESSING a) Structure and Data of the documents used online are defined in the Database. To send output, data must be procured from Database and prepared in accordance with Transmission Medium. b) Steps to Print Output: i) ABAP Processing Program reads Data from Database using Communication Structure ii) ABAP Processing Program processes the data and passes it on to SAP Script (Output Layout) containing. iii) Output is transmitted
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c) Communication Structures for Printing Documents: Inquiry, Quotation, Sales Delivery Order Header VBDKA VBDKL Item VBPKA VBDPL INCLUDES VBDKAZ, VBDPAZ VBDKLZ, VBDPLZ
Billing Document VBDKR VBDPR VBDKRZ, VBDPRZ
d) Pure Form Change: Change / New Field can be processed directly in SAP Form if field exists in the Communication Structure, and/or Processing Program recognizes the field. i) Field is available in Communication Structure ii) Field is not already in the Form. iii) Field can be integrated into the Form in existing Format. e) New Fields: If field was not recognized by the Processing Program. i) If field does not lie in communication structure, then they are included in INCLUDES. f) Steps to add Fields to an Output: i) If field is not in communication structure, add it by using INCLUDES ii) If the field is not in the Processing Program, then add it. iii) Add field to Layout. g) New Output Type: i) Create new Communication Structure (if required), ii) Create new Processing Program and assign SAP Script to new Output type, iii) Include Output type in Output Determination Procedure.
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Output AN00 BA00 LP00 LD00 WMTA SA00 LL00 LAVA PL00
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0001
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Idoc RD00 RD01 RD03 RD04 KO00 KRML
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6) Normal Output Types Process Document Type Quotation Quotation Confirmation Order Confirmation Sales Order Scheduling Agreement Delivery Note Auto TO Creation Shipping Order Freight List Outbound Shipping Delivery Notification Packing List (Header Level) Shipping Label (Handling Unit) EDI/ALE Invoice Proforma Invoice Billing Cash Sales Invoice Inter company Invoice Sales Activity MAIL Credit Processing
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7. How to determine Output Automatically in the sales order/ Delivery /
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Two types of Out put determinations:-
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1. Through condition technique. 2. Through customer master data i.e. while creating account group (OVT0). You find a field “Out put det procedure” (sold to party / ship to party / bill to party / payer). If you select here automatically extra tab page is incorporated in customer master data. But it has got limited functionality, so always advisable to do through condition technique, which will provide you more options. Types of Output: Print Output, Fax, Telex, E-Mail & EDI (Electronic Data Interchange) PRINT OUTPUT: Menu Path: SPRO- IMG- SD - Basic Functions- Output Control- Output Determination- Output Det using Cond Tech- Output Det for Sales Documents & output det for billing documents. 1. Create Condition Table: select the field Sales Doc Type from field catalog & save 2. Maintain Access Sequence: 4-digits code & description. Assign condition table to access sequence. Select Accesses line item and Go To Fields. Fields will display the fields we have selected in the condition table i.e. sales doc type. 3. Maintain Output Types:
AF00: Inquiry
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AN00: Quotation BA00: Order Confirmation LD00: Delivery RD00: Invoice RD01: Proforma Invoice RD03: Cash sales invoice RD04: Inter company invoice.
Select BA00 & Copy & Rename. Give the same 4-digit code as given to acc seq.
Languages of Output Partners (to whom we want to send output) Print Program- print specification Sap Script- layout
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You Can Maintain:
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4. Assign Output Types to Partner Functions: go to new entries & assign your output type to partner functions.
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5. Maintain Output Determination Procedure: V10000 (Standard Procedure). Go to new entries & create your own 6-digit code with descp. Select the procedure & go to Control Data. Here mention the output type i.e. cond type & leave requirement and manual only columns as blank.
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6. Determination Rule: link the 6-digit procedure code to doc types.
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7. Create Condition Records: VV11. Select document type and click on Communication. Mention partner function, medium, time. Output device: LP01, Spool request Name: SD_003, Suffix 2: order_confir & flag on print immediately.
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Once you press enter you will come across 2 key combinations: Sales organisation/ Customer Number: fill SO, Customer No, Partner Function Abbreviation, Partner to whom the output should be sent, time, medium, language. {It contains: Sales Orgn, Customer, Partner Function (The abbreviated form of the name that identifies the Partner) (During output determination, the system determines the recipient of the output from the master record for the specified partner function. In this field, you can explicitly specify a recipient that will override the standard partner. There must also be a master record for the partner that is specified explicitly.), Medium, Time & Language.} Order Type: Document Type, Partner Function (abbreviation), Partner, Medium, Time & Language.
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16. MATERIAL DETERMINATION Material Determination uses cond tech to swap one material for another in a sales order, when certain conditions apply. Substituting one product with another product is called material determination. The product is only substituted during the specific period. Material determination, certain configuration options are available. You may configure he system to automatically.
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To swap the one material for another (for example obsolete products) To swap one material for a number of other materials, the one material being determined based on which one is available. To swap the material for a number of materials, where the user is presented with a list ot choose from. You can use material det if you want the system to automatically substitute, for e.g.:
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Customer specific product numbers with your own material numbers. International article numbers (EAN’s) with your own material numbers. Substituting discontinued materials with newer materials Seasonal products.
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Maintain prerequisites for material determination Assign procedure to sales doc types: determination rule Define substitute reasons: OVRQ
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MENU PATH: SPRO- IMG- SD- Basic Functions- Material Determination-
1. Create Condition Table: select ‘Material Entered’ from field catalogs & save 2. Maintain Access Sequence: go to new entries, give 4-digit code with descp. Select the 4-digit code and go to Accesses and fill access no, table, descp, requirement (blank). Select the line and go to Fields and save. 3.Maintain Condition Type: go to new entries, give the same 4-digit code as given to acc seq. Assign acc seq to cond type and mention valid from and valid to date. 4. Maintain Procedure: go to new entries, define 6-digit code with descp. Select the 6-digit code and go to control data and assign cond type to the procedure. 5. Assign Procedure to Doc Type: assign sales doc type to the 6-digit procedure. 6. Define Substitution Reasons: go to new entries, define 4-digit code with descp. In substitution reasons you will also find entry, warning, strategy & outcome. • • •
Entry: check this field if you want the original material and not substitutes to be printed in the output. Warning: check this field & a warning message is displayed before material is substituted Substitution Strategy: controls whether product selection should occur automatically in the background or whether the alternative materials should be offered for selection in a dialog box.
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Outcome of substitution: controls whether the outcome of product selection should replace the original entry or whether it should be recorded as a sub item of the original entry
7. Condition Records: VB11, enter original material, substitute material, substitution reason & validity. For multiple items select product & click on ‘Alternative Materials Button’. o o
Leave the warning & strategy indicators blank, or you will not be able to perform automatic product selection based on ATP. In outcome of Substitution, you must choose either A or B. Do not leave this field blank. One of the most important decisions that you have to make about the product selection process is whether or not substitutions determined in the order are to be redetermined in the delivery.
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Outcome A Outcome B Create as sub items Yes Yes New Product Selection in Delivery Yes No
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Product substitution redetermined when copying them from sales order to del. Rush order not supported Main items & sub items must be carried through from the sales doc’s, to the delivery, to the billing doc. If you use listing & exclusion in the sales doc process, the system does not take them in to account while redetermining substitutions in the delivery.
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Outcome A:
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The system does not redetermine product substitution when copying them from sales doc’s to the deliveries. All items are copied directly. Rush orders fully supported Main items & sub items do not have to be carried through from the sales doc, to the delivery, to the billing document If listings & exclusions are used in the sales doc process, the changes made as a result influence the delivery documents. For e.g. refer book 1 page: 118.
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Outcome B:
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17. MATERIAL LISTING & EXCLUSION Material Listing & Exclusion lets you control which materials specific customer may or may not buy. Exclusion is given preference over listing. The system will check the listing or exclusion for the sold to party first and if it finds, then no other check takes place, other wise it checks for payers listing & exclusion.
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1. Maintain Condition Table: select ‘Customer & Material’ from the field catalog 2. Maintain Access Sequence: go to new entries, give 4-digit code. Select the 4-digit code and go to accesses and assign cond table to access sequence. Select access line item and go to fields and save.
Copy A001: for Listing, rename with descp Copy B001: for Exclusion, rename with descp
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3. Maintain Listing/Exclusion Condition Types:
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Assign access sequence to the condition type. Also mention valid from & to dates.
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4. Procedure for maintaining Listing/Exclusion: go to new entry. Give 6-digit code and descp. Select the 6-digit code and go to control data and assign cond type. 5. Activate Listing/Exclusion by sales document type: Det Rule 6. Maintain Condition Records: VB01. Maintain Customer, From, To, Material(s).
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18. PRODUCT PROPOSAL / ITEM PROPOSAL: VA51 Item proposal is the same as product proposal and often SAP uses the two terms. You wil not find a document type called item proposal. You will have document type “product proposal”. Don’t worry about confusing the two.
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Frequently occurring material combinations & common delivery quantities can be stored as item proposals. Item proposals are stored independently of customer.
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Menu path: Easy Access – Logistics – SD – Master data – Products – Item proposal – create / change / display. Go To T.Code. VA51, enter Doc Type: MS. Then enter Sales Area, and then you will enter a screen when you can fill in frequently purchased materials and quantities. The system saves & assigns an item proposal no.
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Item proposals are stored independently of customer. Document category “D” controls how the document behaves in the system. You find this in VOV8- sales doc type details of – MS. Item proposal is merely a planning tool and is not valid fro deliveries or invoicing. You can specify an item proposal no in CMD, in Sales Area Data—Sales Tab Page. Item Proposals are sales area specific. You can define the no intervals of the no range for item proposal Remember that the product proposal uses item no range 11 for internal and 12 for external.
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Then Create order i.e. VA01. From the tool bar select ‘Proposed Item Icon’ or from the main menu bar go to ‘Environment—List—Item Proposal’. The system will ask for Item Proposal No/ Default with Quantity/ Default without Quantity & Selection List (from this list you can select with ever product you want either with or without quantity). Then delivery, picking, goods issue & invoice.
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19. BILL OF MATERIALS (BOM): CS01, 02, 03 A Bill of Material (BOM) describes the different components that together create a product. The sub items of BOM along with header level item make up the BOM. MENU PATH: Easy Access- Logistics- SD- Master Data- BOM- Create, Change, Display.
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Processing at Main Item Level: ERLA: in Item Cat Group Field in the Sales Orgn 2 of MMR. The system carries out pricing, inventory control & delivery processing at main item level. Sub item will be ignored.
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Processing at Sub Item Level: LUMF: Sub items are responsible for pricing, inventory control & delivery processing.
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Delivery Group: the sub items of a BOM may be available at different times due to the lead times in Procurement (MM) & Production (PP). Thus if a delivery group is assigned to the item category of sub items. The latest delivery date among all the components becomes the delivery date for the entire delivery group, which means that all the sub items are delivered together. A delivery group can be viewed in sales order in Shipping tab page.
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Material: think center Plant: BOM Usage: 5 (usage 5 indicates the BOM is relevant for S & D documents) Press Enter and You can fill in the sub items, which make the BOM.
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CS01 and Press Enter:
ERLA: Item Category of Main Item is TAQ; Item Category of Sub Item is TAE LUMF: Item Category of Main Item is TAP; Item Category of Sub Item is TAN TAQ TAE TAP TAN Relevant for Billing Yes No No Yes Relevant for Pricing Yes No No Yes NOTE:- SAP supports to create maximum 7 sub components for main item. It is possible to increase by ABAPer as per the client’s requirement.
BOM Tables STKO -- BOM - header STPO --- BOM - item STAS --- BOMs - Item Selection STPN ---BOMs - follow-up control STPU --- BOM - sub-item STZU --- Permanent BOM data PLMZ ---- Allocation of BOM - items to operations MAST --- Material to BOM link KDST --- Sales order to BOM
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A computer consists of several components. In turn, each of these components is constructed from several individual parts. You can store this structure in the system as a bill of material. All the items in the bill of material (BOM) that you want to control in the sales document must be flagged as relevant for sales. (Please note: the items in a bill of material are controlled differently than the item categories in a sales document). If you create a BOM material with BOM usage 5 (SD), all the items in the bill of material will be automatically flagged as relevant to sales. By making the appropriate settings in Customizing for the item categories in the sales document, you can copy the components in the bill of material to a sales order. To process the sales document you only need to enter the material number of the BOM. The BOM appears in the sales document as a structure with main and sub-items. The system explodes the BOMs in the sales order by automatically generating sub-items for the components.
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The individual item categories control what a bill of material can do in a sales document. In Customizing you define and assign item categories for the main and sub-items in the BOM in the sales document. A specific item category group assigned to the material master record of the main item defines which item categories are assigned to the main item. To determine how far the BOM should be exploded in the sales document, you need to define the extent of the structure of the item category for the main item. When you determine the sub-items, the system also needs to know the item category of the higher-level item. In Customizing for item categories, you control which item are relevant to pricing and how you want to implement requirements transfer.
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20. CONSIGNMENT STOCK PROCESSING
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Consignment refers to those goods which are stored at the customer’s location but are owned by the business. The consignment quantity is monitored and controlled separately from the rest of the stock. The customer pay’s only for those goods used or consumed from the consignment stock.
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The customer can usually return consignment goods which are not required.
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Consignment Fill-Up Consignment Issue Consignment Returns Consignment Pick-Up
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Note: Use T. Code: MB58 to know consignment at particular customer. Since consignment stocks still form part of your valued stock, you must manage this stock in your system, as special stock, separately from the rest of the stock and manage separately for each customer, to keep track of returnable packaging stock by customer. If the consignment stocks are not managed by the sold to party but by a central office, you can use the partner function for special stock partner. If you want to process your consignment goods using a special stock partner “SB”, proceed as follows: • •
Create a CMD for special stock partner using the same account group as if you were creating a sold to party. (Account groups 0001 & DEBI are defined for this purpose). Enter the special stock partner in the relevant CMD on the partner screen using the partner function SB.
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Process Flow:
CI
KEN
CONR
KRN
CP
KAN
Move Type
Sch Line Category E1 /E0
MRP & Availability check
631
C1/C0
MRP & Availability check
633
D0
No MRP & No Availability 634 check
F1/F0
MRP & Availability check
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Not relevant for Billing & Pricing Relevant for Billing & Pricing Relevant for del related billing & pricing Not relevant for Billing & Pricing
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Consignment Pick Up
KBN
Item Category
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Consignment Fill Up Consignment Issue Consignment Return
Doc Type CF
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(Unrestricted Stock)
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Company’s Plant
PGI (631) KBN / E0
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Consign Pick-up Order (CP) Delivery
PGR (632) KAN / F1
Consign Issue Order (CI) Delivery (LF)
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Consign Fill-up Order (CF) Delivery Picking
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Goods are delivered to customer’s premises, but are property of the Company till they are actually used by the Customer. Invoice is created only when Customer withdraws goods from Consignment stock.
PGI (633) Billing (F2)
KEN / C0
Consignment Stock (Special Stock)
Customer’s Stock
Consign Returns Order(CONR) Delivery PGR Billing (G2) 634, KRN/D0
a) Consignment Stocks remains as valuated Special stock of the Delivering Plant. b) But maintained and displayed customer-wise for that Plant. It is not added to total Plant stock. c) Special Stock Partner (assigned to Customer Master / Partner Functions / SB of the Customer) has been defined for carrying out consignment stock processing by means of a third party rather than the customer. Consignment goods, which have been entered in a consignment fill-up, are always posted to the stock of the special stock partner when goods issue is carried out. Consignment Fill up: When consignment stock is shipped to the customer, the transaction is referred to as consignment fill-up. • •
In consignment fill-up, goods are delivered to the customer but they remain the property of the business. The transaction is not relevant for pricing and billing. Hence no invoice is generated.
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• • • • •
VA01, VL01N, LT03, VL02N & No Invoice (no billing doc type used , since stocks are company’s valuated stock)
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Goods issue of appropriate stock is posted from the unrestricted use stock to consignment stock. The total valuated stock for the plant remains the same. Consignment fill-up is represented by the order document type – CF. Standard delivery type – LF is used. The standard item category used by consignment fill-up – KBN is not relevant for pricing and billing.
Consignment Fill-up
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Consignment Fill-up KB
Post Goods Issue
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Outbound Delivery LF
Order Type:
Schedule Line Category
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The consignment fill-up uses the schedule line category E0 or E1. Schedule line category E1 is used with MRP and uses availability checking. Availability check is carried against the stock in the delivering plant. Movement Type-631 enables the posting of the goods into a special consignment category in the delivering plants stock for that particular customer and material.
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The transaction wherein the business delivers stock to a customer on consignment is recorded using order type CF.
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Order Processing:
Delivery Processing: • •
The consignment fill-up order type is then followed by a standard delivery – LF. The document is relevant for Picking and PGI as it ensures the creation of consignment special stock for the customer.
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Stock Overview:
A special stock is created for the customer. The order quantity is moved from unrestricted use stocks in the plant and added to the special stock for the customer.
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When the goods issue is posted –
The goods remain in the possession of the customer.
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The total valuated stock for the plant remains the same.
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Consignment Issue: enables the customer to take consignment goods from the special stock for their use or to sell. You record the transaction in your system by creating consignment issue order. As a result, the relevant quantity is deducted from both the customer’s special stock & your own total valuated stock. The transaction is relevant for billing since the goods now become the property of the customer. KEN has schedule lines & should determine the cost of the item.
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The customer or the consignee may use the stock at his site and indicates the business of the same. The consignment stock that is used now becomes the property of the customer. The customer pays only for those quantities of goods consumed by him.
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VA01, VL01N, VF01.
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Outbound Delivery LF
Post Goods Issue
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Consignment Issue KE
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Customer
Billing F2
Order Type: • • •
The consignment issue uses standard sales order document type – CI. It is followed by standard delivery type – LF. A delivery related billing type – F2 is defined for this order type.
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Item Category:
Schedule Line Category: • • •
The consignment issue uses the standard schedule line categories - C0 and C1. Schedule line C1 performs MRP and availability check. The goods movement type-633 checks for the available consignment stock at the customers place.
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Order Processing The business issues the sale, for the quantity consumed, to the customer thru the order type – Consignment Issue, CI.
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The consignment issue order type is followed by a standard delivery – LF. The document is not relevant for Picking as the goods being dealt are from the special stock already marked for the customer. The goods issue triggers the transfers of goods ownership from the business to the consignment consumer.
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Delivery Processing
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Stock Overview When the goods issue is posted – •
The order quantity is deducted from both the customer’s special stock and the business own total valuated stock.
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The goods become the property of the customer.
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Consignment Return: is a sales process flow that represents faulty materials or the product consumed or sold by the consignee. The consignee puts the stock back in to his consignment stock as faulty & requests a credit note for returns. The return should have a different no range for the visibility of returned items. The return doc type should also promote a special shipping condition that causes a special shipping point to be used in shipping point determination, which can be used to process all return deliveries. • •
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The stock is moved back into the customer’s consignment stock, not our plant. The customer will call us to pick up. The transaction is not relevant for billing as the returned stock was regarded as part of business inventory. The customer may then request for a credit note for returns. VA01, VL01N, Credit Memo or Free of Charge Subsequent Delivery.
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Returns Delivery LR
Post Goods Returns
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Consignment Returns KR
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Consignment Returns
Credit for Returns G2
Order Type: • • • •
The sales order document type – CONR is used for consignment returns. The order is assigned returns delivery document type – LR. The order is relevant for order related billing type-RE. Billing block is proposed to check if the credit is authorized and valid.
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Consignment returns uses item category - KRN. Special stock indicator – W is maintained indicating consignment process. The item is relevant for pricing and order relevant billing based on the order quantity.
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Item Category
Schedule Line Category • • •
The standard schedule line category used for consignment returns is D0. The schedule line used standard movement type – 634. No transfer of requirements and availability check are carried out as the goods are being received back to the consignment stock at the customers’ site.
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The faulty materials returned back by the customer is represented by the sales order document type- CONR.
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Order Processing
Delivery Processing: • • •
The returns are recorded in the standard returns delivery document type– LR. PGR causes the stock to move back into the customers’ consignment stock. The ownership of the goods is passed from the customer back to the business.
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When goods receipt is posted, the returns quantity is added to the customer’s special stock at the plant where the goods are returned. Thus the customers’ consignment stock will increase by the returns quantity.
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Stock Overview
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Consignment Pick Up: Order Type Consignment pick-up is represented by the order document type – CP. Standard returns delivery type – LR is configured. The transaction is not relevant for billing. Hence no values are maintained for delivery and order-related billing types.
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Consignment Pick up uses the standard item category – KAN. The item is not relevant for billing and pricing as the stock is coming back into the warehouse and hence there is no change of the ownership.
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Item Category
Schedule Line Category: • • •
The consignment pick-up uses the standard schedule line categories – F0 and F1. The schedule line category F1 is relevant for transfer of requirements and availability check. Availability check is carried against the stock on the customers’ consignment.
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It has standard movement type - 632.
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All the excess material lying unconsumed and any faulty material at the customers site are brought back to the business using the order document type –CP.
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Order Processing
Delivery Processing: • •
Delivery is carried out using the standard returns document type-LR. Goods receipt posts the stock back to the business warehouse.
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Stock Overview: •
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With the PGR the quantity gets deducted from the customer’s special stock and is added back into the regular stock at the plant where the goods are returned. The total valuated stock remains the same since the returned stock was regarded as part of the business own inventory even while it was at the customer’s premises.
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Consignment Pick Up: picking of faulty materials as well as excess materials not yet consumed by the customer. As the stock is coming back into the warehouse or plant, you will want a specific return shipping point. No invoice is necessary, as the goods are not changing ownership. The transaction is not relevant for billing as the returned stock is regarded as part of business inventory.
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VA01, VL01N, VL02N, VL09.
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Consignment Pick-up
Business
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Customer
Returns Delivery LR
Post Goods Returns
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21. THIRD PARTY ORDER PROCESSING
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In third-party order processing, the business passes the order from the customer, to a third-party vendor who then ships the goods directly to the customer and bills the business. When a third party order is saved, purchase requisition is automatically created and forwarded to the purchase department. The purchase department then creates the purchase order on the third-party vendor indicating that all goods are to be delivered directly to the customer. The vendor delivers the goods to the customer and bills the business for the same. The business then bills the customer for the goods delivered by the vendor after verifying the invoice receipt.
The purchase order of the customer is first entered in a sales organization of your company as a sales order (application SD). A purchase requisition is automatically created from the order. Afterwards, a purchase order for the external vendor is created in the MM purchasing application. This order states that all goods are to be delivered directly to the customer. As soon as the vendor confirms to you that the outbound delivery is complete, you post a goods receipt so that this information is recorded in the system. In the application MM Invoice Verification, you enter the invoice issued by the vendor to your company for the goods delivered by the vendor to the customer. Finally, you generate the SD billing activities to your customer.
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Third party order:
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The processing of third-party orders is controlled via material types which define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. If a material is always delivered from one or more third-party vendors, material is maintained as third-party item. BANS is entered in the Item category group field in the Sales 2 screen of the material master record. System determines the item category as TAS while processing the material in the order.
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In the case of a material that business delivers itself but occasionally orders from a third-party vendor, the item category of the material is manually changed from TAN to TAS during sales order processing.
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Item Category • •
The item Category TAS is relevant for order related billing, quantity as per the goods receipt. The item is also relevant for pricing.
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The system determines the standard third party schedule line – CS. The schedule line is not relevant for any goods movement type as the physical goods issue does not take place from the business. The standard purchase requisition-NB, Third party item category – 5 and third party account assignment Category – 1are configured to enable the system to automatically create a purchase requisition for the schedule line.
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Schedule Line Category:
Third Party Order Sales • • •
Third-party items are processed by creating a normal sales order. The system uses TAS as the standard third party item category. A sales order may consist partly or wholly of third-party items.
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Purchase requisition is automatically created in purchasing once the sales order is saved. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. If a third-party order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
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Purchase Requisition
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Purchase Order Purchase order is created with reference to the purchase requisition. The system automatically adopts the delivery address of the recipient from the sales order. Third-party order items in purchase orders are marked with item category S. Any quantity and date changes made in the purchase order are automatically copied into the sales order.
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Once the goods have been delivered to the customer by the vendor, the business then bills the customer. No delivery exists in the system for third-party order items. The system is set for order related billing during selection of the documents to be billed.
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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 & bills to you. If the vendor delivers it to us, so that we can deliver to the customer, you can use Individual Purchase Order Processing. Automatic Third-Party Order Processing: to specify an item as a third party item, enter BANS in the item cat group field of the Sales 2 Screen of MMR. During subsequent sales order processing, the system automatically determines the appropriate item category for a third party item: TAS. Create the material using Material Type: Trading Goods.
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NB: Third party purchase order type. F1: Order related Billing.
Process Flow for 3rd Party Sales Customize the third party sales in summary: 1. Create Vendor XK01 2. Create Material – Material Type as "Trading Goods". Item category group as "BANS". 3. Assign Item Category TAS to Order type that you are going to use.
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4. A sale order is created and when saved a PR is generated at the background
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5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
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6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO 7. Goods receipt MIGO
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8. Goods issue
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9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.
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Sales order Create Sales Order VA01 Order Type Sales org, distr chnl, div Enter Sold to PO # Material Quantity Enter Save
View the PR that is created with a third party sales order VA01 Order Number Goto Item Overview Item ->Schedule Item View the PR that is created ME52N
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Receive Goods MIGO_GR PO Number DN Number Batch tab , click on classification Serial Numbers tab Date of Production Flag Item OK Check, just in case Post Save
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Assign the PR to the vendor and create PO ME57 Key in the PR number Toggle the "Assigned Purchase Requisition" Execute Check the box next to the material Assign Automatically button Click on "Assignments" button Click on "Process assignment" The "Process Assignment Create PO" box , enter Drag the PR and drop in the shopping basket Save
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Key in the PR number Save
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Create Invoice MIRO Invoice Date Look for the PO , state the vendor and the Material Check the box Clilck on "Copy" Purchase Order Number (bottom half of the screen) Amount State the baseline date Simulate & Post Invoice Number *Invoice blocked due to date variance Create a delivery order VL01N In the order screen , go to the menu Sales Document , select "Deliver" Go to "picking" tab State the qty and save Create a billing document VF01 Ensure that the delivery document is correct in the Enter
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Go to edit -> Log Save
1. Create Sales Order: VA01. You process third party items by creating a normal sales order. Select the line item & Go to Schedule Lines. You will find 2 dates- Date Requested & Date Available. In schedule line you will find Sales/Shipping/Procurement. Select Date Available and Go to Procurement. When you save a sales order that contains one or more third party items, the system automatically creates a purchase requisition in purchasing. 2.Create Purchase Order: ME58: On the left hand side you will find Open Purchase Requisition, Drag it on to the right side and save the purchase order.
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3. Goods Receipt: MIGO: Give the purchase order no and save. It is a logical goods receipt. Stock will not come to our plant.
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4. Invoice Verification: MIRO: give P.O. No & Tax amount at the rate of 16% 5. Invoice: VF01.
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You can only change the address data for the ship to party in the Sales Order for third party business transactions & not in the purchase order. All changes made in the Purchase Order are automatically made in the sales order as well. But vice versa is not, except for the address of the ship to party. Item Category Group: BANS Item Category: TAS While creating a third party item, in the Purchasing View fill the Purchase Group Item Category for Individual Purchase Orders: TAB. Doc Used: OR/RO.
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22. SALES INCOMPLETION LOG / INCOMPLETION LOG
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Status Groups: Status Group is a grouping of different kinds of status. A group can consist of any combination of general, delivery, billing, and pricing status.
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Using status groups, you can determine which status messages appear when you process different documents. The status group also provides the link, during sales order processing, between the incompletion log (where the system prompts you to enter data in required fields) and the header and item status screens in the sales document. The fields that appear in the incompletion log are defined for each sales document by an incompletion procedure, where you assign a status group to each field Then, during sales order processing, if you omit to fill a required field, the system o prompts you for the relevant information in the incompletion log o records the status messages in the sales document, according the assigned status group
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An incompletion proc inspects the object, such as a sales doc line item & inspects specific fields in order to see if data has been maintained in these fields. Should data not be maintained in these specific fields, the system is told how to respond, i.e., does it or does it not give a warning message & to what extent does it allow further processing of the doc? The incompletion log cannot register what data is maintained in the specific field & compare it to the data that should be in the specific field. One can create incompletion logs for the following: • Sales Doc Header Data: VBAK • Sales Doc Item Data: VBAP • Sales Doc Schedule Line Data: VBEP • Business Data: VBKD • Customer Data: KNA1 (general data: CMD) • Sales Area Data: KNVV • Delivery Header Data: LIKP • Delivery Item Data: LIPS Incompletion Procedure – Configuration: The following steps are involved in configuring Incompletion procedure. SPRO- IMG- SD- Basic Functions- Log of Incomplete Items: • Define Status Group: OVA0 • Define Incompletion Procedures: OVA2 • Assign Incompletion Procedures: VUA2
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Define Incompletion Procedure:
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In the next step in incompletion procedure definition, we assign the fields to the procedure which should be checked for incompleteness as also if any warning message is to be issued if there are no data in the fields.
Assign Incompletion Procedures:
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Define Status Groups: In the status group we define which functions may be carried out by an incomplete sales and distribution document or items
Define Status Groups: First, one needs to define the status groups. This status groups are eventually assigned to the specific field in the incompletion log. Thus, it is possible to specify in a sales doc that field A may be incomplete, but not hinder the doc from being processed further, while field B may be incomplete and be the cause of the same doc being blocked for further processing. The status groups will be assigned to field ‘status’ in ‘define incompletion proc. The statuses group settings are: Status General Delivery Billing Doc Price Goods Movement Picking Packing Group
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Note that incompletion proc are assigned to various sales doc types & sales doc item categories It is not possible to create your own error group such as a copy of Group A: sales header You can create a copy of the assigned procedures to the error, such as a copy of the standard procedure: 11- sales order. To create your own incompletion proc, select the change display button. Then go to new entries.
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Description Inquiry / quotation Sales header Outline agreements
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Error Group A In Proc 10 11 12
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Define Incompletion Procedure: OVA2 By selecting Group A: Sales Header, Select Procedures, (& then click on display button), you can see incompletion procedures. Then select incompletion group line item & go to fields Procedures Fields Incompletion Group Group Description A Sales header B Sales item C Sales schedule line D Partner F Sales activity G Delivery header H Delivery item.
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One can see the table names with assigned field name & description of that field. Table Name Field Name Descp Screen Status Warning VBKD BSTKD P.O. No KDES 02 Flag on the Box
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The assigned screen “KBES” is the screen that the system takes the user through in order to complete the missing data. Assigned to the P.O. No is an indicator saying the system must display a warning message in the sales order at the time that the system checks to see if the data is maintained for the purpose of incompletion log. Should no warning indicator, be assigned the system will merely indicate the sales doc is incomplete & offer an option. Assign Incompletion Procedure to Sales Doc Types: VUA2 One can assign the procedure to each object that resembles an incompletion error group, such as Group A: sales header. You can assign the proc for e.g. IL to OR (sales doc type) Sales Doc Type Procedure Incompletion Message OR IL Flag It on Should one not require the pop up box, but merely allow the doc to be automatically saved, even though it will still be blocked for further processing, if incomplete. One can select the indicator “incompletion message”. If you mark this field & then try to save a sales doc in which info is missing, the system advises you that the doc is incomplete. • For certain types of documents like rush orders, complaints; you can leave this field blank.
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23. SHIPPING
Functions supported by the R/3 System in shipping processing include: Monitoring of deadlines for reference documents due for shipping (for example, customer orders and purchase orders) Creating and processing outbound deliveries Monitoring goods availability Monitoring capacity situation in the warehouse Support for picking (with link to the Warehouse Management System) Packing the delivery Printing and transmitting shipping documents Processing goods issue Controlling through overviews of: - deliveries currently in process - Activities still to be performed - Possible bottlenecks The deliveries in the shipping department that have already been posted for goods issue can provide the basis for creating a work list for billing.
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A shipping point is an independent organizational unit at a fixed location that processes and monitors outbound deliveries as well as goods issue. The shipping point is directly under the client level. An outbound delivery is processed from a single shipping point. The responsible shipping point is determined in the order at item level. A shipping point can process the outbound deliveries of several plants. This is only useful if the plants are located in the same general vicinity. Several shipping points can be assigned to one plant. They may, however, have different loading equipment or different processing times. The allowed combinations of shipping point and plant are defined in the Customizing application of the enterprise structure.
SHIPPING POINT DETERMINATION: Shipping Points are independent organizational units that are linked to plant & represent the point of departure or receipt of materials. A plant may have many shipping points. Each & every outbound delivery will be processed from one shipping point only. You cannot change shipping point in delivery Shipping points are subdivided into loading points. Shipping point is assigned to a plant. One shipping point is assigned to multiple plants, provided they are in the same geographical area.
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Menu Path: SPRO- IMG- Logistics Execution- Shipping- Basic Shipping Functions- Shipping
Point Determination.
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• Define shipping conditions • Define shipping conditions by sales doc type • Define loading groups • Assign shipping points • Assign goods receiving hours for inbound deliveries The shipping point is the central key to a delivery; no delivery can be made without one. The shipping point is determined by the system based on: • Shipping Conditions :(2 digits code) entered manually in the sales order or copied from the CMD (shipping screen) or they can be defaulted to a particular sales doc type. Should they be defaulted to a particular sales doc type, the system will ignore the settings on the CMD (this is useful in returns). • Loading Group: (4 digits code) which is copied from MMR. As a del is not possible with a loading group it is advisable to make this field as mandatory field. • Delivering Plant: of the line item (which is copied from Cust Mat Info Record, CMD, MMR) in the sales order. • Shipping Conditions + Loading Group + Delivering Plant Shipping Point • To define shipping point: SPRO- IMG- Ent Stru- Defn- Logistics Execution- Define, copy, delete, check Shipping Point. • To assign shipping point to plant: SPRO- IMG- Ent Stru- Assignment- Logistics ExecutionAssign Shipping Point to Plant.
A shipping point is determined for each order item. The system automatically proposes a shipping point that you can change within given limits. The shipping point depends on the following criteria: The delivering plant that is determined for each order item (from the customer-material info record, the ship-to party record, or the material master record)
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The shipping requirements (for example, express) contained in the Shipping Conditions field The required loading equipment contained in the Loading Group field in the material master The shipping condition is proposed from the sales document type if a shipping condition has been assigned to it. If not, the shipping condition is proposed from the master record of the sold-to party. An outbound delivery is always processed by one shipping point. You cannot change the shipping point in the outbound delivery. When an order is processed for delivery by the shipping point, the system only copies into the outbound delivery those order items that are defined for this shipping point. Order items with different shipping points are therefore not copied into the same outbound delivery. STORAGE LOCATION DETERMINATION:- (BY MM):
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Shipping point + Delivering plant + Storage condition = Storage location.
In order to achieve efficient processing for goods receipt and goods issue, you can use the following organizational units: Warehouse number: The entire warehouse structure is managed under one warehouse number. This number represents the warehouse complex.
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Storage type: The different warehouse areas, which differ with respect to their organizational and technical features, are defined as storage types (for example, high-rack warehouse with random storage, picking warehouse with fixed bins, shipping area). Picking area: The picking area groups storage bins together in the storage type from the picking Viewpoint. It is the opposite of the storage section, which groups storage bins together from the put away viewpoint. For example, a delivery can be split up into different picking areas to make parallel picking possible. Staging area: The staging area is an area in the warehouse where the goods are stored immediately after unloading or shortly before loading. Door: A door within a warehouse can be used both for inbound delivery as well as outbound delivery of goods. The door and the staging area are already defined in the outbound delivery header. They can be determined automatically, that is, depending on the customer.
The linkup of the organizational units in the warehouse to MM Inventory Management takes place through the assignment of the warehouse number to a combination of plant and storage location. Several storage locations within a plant can point to the same warehouse number. They thus form the warehouse complex from the different viewpoints of inventory management.
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OUT BOUND DELIVERY IN SHIPPIG (VL01N)
A delivery document consists of a header and a number of items. The header contains data that applies to the whole document. This means that the ship-to party, shipping point, route, and so on, is clearly displayed for each outbound delivery. The items primarily contain information about the material to be delivered. The information in the delivery document is displayed in different screens: The overview screen displays selected header and item data, which is grouped according to activity on tabstrips. This means that you find the important data all on one screen. At both header and item level, you can access another screen to display detailed information. Again, the information is grouped into processes on tab strips. At header level, this information includes data on processing, picking, loading, and shipment, foreign trade/customs, texts, partners, output, package monitoring, and conditions. At item level, the detailed screen displays similar tab strips with information about the items.
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The delivery type controls the entire delivery. You see the delivery type in the delivery header. The delivery types take into account the various business transactions in delivery processing.
TYPES OF DELIVERY DOCUMENTS defined in the standard system:
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LB: Delivery for subcontract order LD: Decentralized shipping (used in decentralized shipping in connection with R/2 RV) LF: Outbound delivery LO: Delivery without reference (no sales order necessary in order to create a delivery) LP: Delivery from project LR: Returns delivery NL: Replenishment delivery RL: Returns vendor BV: Cash sales.
Using control elements, you can configure each delivery type to carry out different functions. You can adjust the delivery types in the standard system to meet your business requirements. However, if major adjustments are required; we recommend that you create a new delivery type.
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The delivery item category controls how delivery items are handled and processed during the shipping process. The control elements available provide a high degree of automatic determination and checking. You can also configure the item categories to meet the specific requirements of your system installation.
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When you copy an order item to a delivery, the system copies the item category of the order item to the delivery item. If an order item category or the schedule line assigned to it is relevant for delivery; the same item category is defined for the delivery process.
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The system cannot copy item categories for order-independent items in the delivery (for example, packing material) or for deliveries without reference to an order (delivery type LO). In this case, the system determines an item category for the delivery according to the assignments specified in Customizing. For determining the item category, the system takes into account the delivery type as well as the item category group (from the material master of the item). Additional usages are set internally for some functions, such as: PACK for generating packing items CHSP for a batch split PSEL for product selection For the delivery items resulting from these functions, the system can determine a different item category.
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In the copying control table you specify: Which sales and distribution document types can be copied to which delivery types Which item categories are copied from reference documents You can also specify: Under what conditions data is copied from the order to the outbound delivery Under what conditions several orders can be combined in an outbound delivery Which data is to be transferred Whether the reference should be recorded in the document flow Order items that are due for delivery that have the same shipping criteria are shipped together. Required shipping criteria include the shipping point, the route, and the ship-to party. Certain shipping criteria in the standard system are optional and can be removed as splitting criteria from the copying control table. You can also define additional splitting criteria that do not allow joint shipping if the defined fields have different values.
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You control order types by specifying: Which delivery type is proposed for the outbound delivery Whether a requested delivery date is proposed in the order and how far it is in the future Whether the outbound delivery is automatically created in the background when the order is saved Delivery relevance on the order item category level is valid only for text or value items. You can set a text item as relevant for delivery, for example, so that it will be copied into the outbound delivery from the standard order and recorded in the delivery note. Physical deliveries using the interface to the MM Inventory Management component are only possible if schedule lines are used. This is why in this standard case schedule lines must be allowed for the order item category, and the schedule line category must be set as relevant for delivery. The goods issue movement type (or goods receipt movement type for returns deliveries) is defined at the schedule line category level.
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DELIVERY SCHEDULING
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During delivery and transportation scheduling, the point at which the goods arrive at the customer can be confirmed (confirmed delivery date) Different lead times are taken into consideration here: the pick/pack time, loading time, transportation lead time and the transit time The following data plays a role in delivery scheduling: Order date: Date on which the order was issued Material availability date: Date on which sufficient goods should be available for picking and Packing, Loading date: Date on which picking and packing should be completed (and the mode of transport should be there), in order that loading can begin on time Goods issue date: the date on which the goods must leave the delivering plant, in order that they arrive at the customer's at a specific time Delivery date: Date at which the goods arrive at the customers. Here a difference is made between: Required delivery date: Date on which the customer wishes to receive his goods Confirmed delivery date: Date on which the arrival of the goods at the customers can be confirmed.
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When determining a delivery date, you can take into account the times required to deliver the goods via a route to the customer. The total time includes: Transit time: time required to transport the goods to the customer Transportation lead-time: time needed to prepare the transportation of the goods.
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ROUTE DETERMINATION
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Route determination is carried out in the order item and depends on: 1. The country and the departure zone of the shipping point (assigned in Customizing) 2. The shipping condition defined in the sales document type or entered in the sold-to party 3. The transportation group assigned to the material 4. The country and the transportation zone of the ship-to party (assigned in the customer master) You can manually overwrite the route determined in the order item. You can redetermine the route in the outbound delivery based on the weight. Whether the route is redetermined depends on the configuration of the delivery type.
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When you create an order, the system can determine the required material availability date based on the delivery date requested by the customer. The goods to be delivered must be available for shipping at this point in time. Scheduling takes into account the following times: Transit time: Time required in order to ship a delivery to the ship-to party Loading time: Time required for loading the goods Pick/pack time: Time required for picking, packing, and so on Transportation lead-time: Time required for organizing the transportation Next, the system performs backward scheduling in the order. If the result is a date in the past, the system automatically performs forward scheduling, which requires the confirmation of a new requested delivery date. The same happens if the material is not available by the material availability date. When you create an outbound delivery you can carry out forward scheduling again. This is generally done when the material availability date determined in the order falls in the past by the time you create the outbound delivery (delay when creating the order). You can specify for each delivery type whether scheduling should be redetermined. For each shipping point, you decide whether the system performs precise or daily scheduling. When you maintain the "working hours" for the shipping point, scheduling takes place according to working hours and the results are displayed down to the minute.
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Delivery scheduling includes the pick/pack time and the loading time. These times depend on the shipping point that delivers the order item. You can specify for each sales document type if delivery scheduling is to be carried out. For each sales document type, you can also define if only the pick/pack time (and not the loading time) is to be considered during delivery scheduling. You can also define for each shipping point whether the pick/pack time and/or the loading time should be taken into account. You can choose whether a global time specification for the pick/pack time and the loading time is sufficient at shipping point level (default) or whether more detailed time specifications which depend on further criteria should be used. These criteria are: Shipping point Weight group (for pick/pack time) or loading group (for loading time): From material master Route (optional) If the route is not necessary as one of the criteria for determining the pick/pack time and the loading time, you can make an appropriate setting. In this case the route entry in the scheduling table should be blank. It makes sense to differentiate between routes if you are using different means of transport.
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The aim of shipping and transportation scheduling is for the customer to confirm a delivery date for the material ordered. In backward scheduling, the materials staging date and the transportation planning date are calculated from the required customer delivery date. The outbound delivery must be created on the earlier of the two dates (selection date of the outbound delivery) -- If both dates are after the order date and the material is available on the materials staging date, the required delivery date is confirmed to the customer. A schedule line is created for a sales document item. The date of the schedule line corresponds to the confirmed delivery date, which corresponds to the required customer delivery. -- If one of the two dates is before the order date, three can be no confirmation of the required delivery date. Therefore the system now tries to agree the next possible date (forward scheduling).
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If the result of backward scheduling means that the delivery date required by the customer cannot be confirmed, the system updates scheduling with forward scheduling.
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--- Forward scheduling takes into consideration the time parallels of the workflows for transportation planning and retrieving and picking/packing of materials. The longer of the two periods is relevant for scheduling. The selection date for the outbound delivery is the earlier of the materials staging date or the transportation planning date. ---- The earliest time at which the material is available is the new material staging date. This is the outgoing point for new delivery scheduling. Two schedule lines are generated for the sales document item: The date of the first schedule line corresponds to the customer's required delivery date and has no confirmed quantity. The date of the second schedule line shows the confirmed delivery date and the confirmed amount.
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You can change or add to delivery documents after saving. However, you should ensure that information such as ship-to parties and shipping points are not changeable once you have created the outbound delivery. For example, you can add items to the outbound delivery. These items can refer to other orders (deliver order function). For adding order items, the same splitting criteria apply as for combining orders during collective processing. You can also add order-independent items to the outbound delivery. For this item, the system determines an item type using the usual rules (see unit Controlling Elements of the Outbound Delivery).
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BATCHES
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You can specify a batch in the relevant detail screen for materials handled in batches (whether or not a material is handled in batches is indicated in the material master record in the "Storage 1" and "Purchasing" screens). When delivering a sales order, this batch is copied to the outbound delivery. You cannot change it there. If no batch has been specified in the sales order, you can enter one in the picking overview screen of the outbound delivery. You must specify a batch, at the latest, before goods are issued. Use the batch split function if the delivery quantities of an item are to be taken from different batches. You can carry out batch splits as follows: Manually in the batch split screen of the delivery item When creating the outbound delivery using automatic batch determination (this function must first be activated in the delivery item category) Through manual batch determination in the batch split screen In the Warehouse Management component Course L0955 covers batch management in detail.
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SERIAL NUMBERS
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You can assign a unique serial number to each material. This allows you to monitor goods movement for individual materials, for example, when selling materials to a customer. Using serial numbers you can also manage the maintenance of individual materials more easily in the system. You must first create equipment master records, however, for these materials. To use serial numbers; enter serial number profiles in the master record for the relevant materials. Serial numbers are usually specified in the delivery item. However, you can also define them in the order. You can also have the serial numbers assigned automatically by the system. You must specify all serial numbers, at the latest, before posting goods issue.
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PRICING IN THE OUTBOUND DELIVERY
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The outbound delivery can contain shipping-related conditions at header level, such as shipping or freight costs (if you are not using the Transportation component). You can enter the condition values manually or determine them using the SD pricing condition technique. You can print the conditions on the delivery note as well as transfer them in the billing document, but you cannot transfer them from the preceding documents to the outbound delivery. To implement the conditions; use the standard Customizing settings for pricing (condition type definition, maintaining the pricing procedure). Assign the pricing procedure to the delivery type.
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You can split existing deliveries into several smaller deliveries, which is useful if, for example, there is not enough room in your truck to hold the entire delivery. To do this, you can call up a list and select the delivery items, partial quantities of items, or shipping units that are to be taken out of existing deliveries. When you split a delivery, you create one or more new deliveries, called results, and the remainder. When you call the delivery split, specify a split profile to determine the type of split. The split profiles contain control parameters, are defined in Customizing, and assigned to delivery types.
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PICKING IN SHIPPING (LT03)
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Picking is the process of preparing goods for delivery to the customer with special attention paid to dates, quantity, and quality. You specify for each delivery item category whether it is relevant for picking . Often, picking takes place using the printout of a picking list. SAP recommends that you use the functions of the WM transfer order. For this purpose, you do not need to implement the complete WM system; Lean WM is sufficient. Using Lean WM means using a small part of the functionality of the R/3 component WM (Warehouse Management). With the help of the output control for the outbound delivery, you can also transmit data to a subsystem that is implemented for the picking process. In the standard configuration of the system, the prerequisite for posting goods issue is that picking relevant items are completely picked. This means that the delivery quantity and the pick quantity in the outbound delivery must be the same.
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To use WM in picking (either full WM or Lean WM), you create a transfer order (TO). The transfer order is a document with which the goods movements within a warehouse complex can be initiated and monitored. You create one or several transfer orders on the basis of the items to be picked using WM. Afterwards, you print out the transfer order. This step can be executed automatically by the system. Instead of printing the transfer order as a picking list, you can transfer the data of the transfer order to an external system using portable data capture or to a warehouse control unit. By confirming the transfer order, you verify the quantities removed from the warehouse. If you are working with a confirmation requirement, you must perform this step separately. If there is no confirmation requirement, the system automatically confirms the quantities when you create the transfer order. Finally, you can post the goods issue. This completes the shipping process.
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A transfer order is an instruction to move materials from a source storage bin to a destination storage bin within a warehouse complex. Transfer orders include the following information: Material number Quantity to be moved Source and destination storage bin When you create the transfer order, the system automatically copies the delivery quantity from the outbound delivery to the transfer order as the picking quantity. The picking quantity in the outbound delivery is entered automatically when you create the transfer order. In Lean WM, the picking quantity is initially the same as the delivery quantity.
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If you have a warehouse with random storage, you need to use the WM System with full Functionality. Since a material can be stored in different storage bins or even several storage bins at the same time, precise inventory management at the level of the storage bin is required. Lean WM does not have inventory management at the level of the storage bin and is therefore more suitable for fixed bin warehouses. In a fixed bin storage area, the material is always in the same storage bin. To print the storage bin in the picking document, you must maintain the respective data in the material master in the view "Storage 1". Maintenance of further warehouse data and the Warehouse Management views is not required. Some of the WM functions not included in Lean WM are listed below: Storage sections Reserve storage bins Strategies for put away and picking Replenishment Inventory at storage-bin level, this considerably reduces implementation effort.
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Possible depiction of the warehouse structure of a fixed bin in the SAP System if Lean WM is in use. For Lean WM you need at least one warehouse number and at least one storage type from which picking takes place and one storage type in which goods are stored (for example, picking storage type as source storage type, shipping zone as destination storage type). In the picking storage area, you can have storage bins grouped together from the stock removal viewpoint (for example, to distribute the workload evenly). Picking areas can be defined for each warehouse number and storage type. In addition to the picking area, there are other organizational units in the warehouse. These are the staging areas and the doors. They are defined in the outbound delivery or determined by the system and they can also be printed out on the picking documents. You can activate Lean WM in Customizing at the warehouse number level. You assign a warehouse number to a combination of plant and storage type. In this way, the organizational units in the warehouse are linked up to MM Inventory Management. Also, through this assignment, a status for WM activities is assigned to the respective items in the outbound delivery.
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There are several ways of creating a transfer order (TO). They differ only in the degree of automation involved. In individual cases, it is possible to create the transfer order as a follow-on function from the delivery. You can also create transfer orders separately. To do this, create the transfer order either with reference to a specific outbound delivery, or use the delivery monitor to create transfer orders for several deliveries at the same time. The procedure "automatic/direct TO" is suitable if you want to have the transfer order created automatically from each outbound delivery, without manual involvement or effort. Using the collective processing procedure, you can group several outbound deliveries together for the purpose of creating the transfer orders. In WM, you have the following options for printing using a print code: Single print: One page for each TO item (for example, item-by-item processing in the warehouse) Combined print: One list for the entire transfer order (also called "combined list") Pick list: One list for several transfer orders that were created in collective processing
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In picking, differences may occur between the quantity actually removed and the delivery quantity. However, you can only post a goods issue if the picking quantity and delivery quantity are the same. One option is to copy the picking quantity as the delivery quantity and perform a partial delivery. In the order, the status is set to partially delivered, and a new delivery is created for the remaining items. Alternatively, you can choose subsequent picking. In this case, you create a new transfer order for the difference.
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When you create the transfer order, the system sets the delivery quantity as the picking quantity so that the picking status is set to C (= fully picked). If you wish to have the system record the fact that the picking procedure is complete; you can set the confirmation requirement. You must confirm the transfer order and therefore also the picked quantities (Pick qty field) before the goods issue are posted. If you have organized your warehouse so that picking causes changes to the outbound delivery in only a limited number of cases, and the confirmation takes place on time, you can limit this step to the deliveries to be changed and also work without the confirmation requirement. During confirmation, it is possible to report differences in quantities. You can record the cause for the difference in the system by entering a difference indicator. As soon as confirmation is complete; the status of the WM activities is set to 'C', regardless of the confirmed quantity. Only the pick quantity affects the picking status. In Customizing, you define the confirmation requirement for each storage type. It will suffice if you set either the "stock removal" (picking) in the source storage type or the "stock placement" (put away) in the destination storage type as requiring confirmation.
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Packing is the process of assigning delivery items to shipping materials. This produces shipping units, which can then have more shipping materials added for packing. This creates new shipping units. You can use as many levels as required (multi-step packing). You can also unpack items from shipping units, or you can break a shipping unit down into its constituent parts and then delete it. In Customizing, you specify for each delivery item category whether it is relevant for packing . The settings are: packing allowed (default), packing not allowed, and packing mandatory. The packing status is updated for each item in the outbound delivery (example: partially packed / completely packed). In the standard system, two output types are set up for printing: packing list (at delivery level) shipping label (at shipping unit level) You can define your own output types. Using the delivery item category, you can specify for items with batch split if the main item (with the accumulated quantity of the batch split items) or the individual batch split items are to be packed. If the individual batch split items are packed, you can identify in which shipping unit a specific batch is contained.
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The packing function is available: in orders (as packing proposals) in the outbound delivery in the shipment document The packing proposal in the order can be copied to the outbound delivery. You control this at the header level in the copy control table for deliveries. You can make packing in the outbound delivery subject to certain conditions. To do this, you need to make settings in Customizing (standard setting: packing cannot be carried out when the delivery has been blocked by the credit check). You can change packing in the outbound delivery as long as you have not posted the goods issue. Packing in the outbound delivery is copied to the shipment. You can then choose to pack all the deliveries together. Using user exits you can specify rules for automatic packing during outbound delivery creation. The resulting proposal contains the shipping materials and the contents of each shipping unit. Automatic packing is activated for each delivery type.
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GOODS ISSUE in SHIPPING (VL02N)
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Posting goods issue for an outbound delivery completes shipping activities. Posting goods issue requires that all mandatory shipping activities have been performed. For example, if you are working with picking relevance and confirmation requirement, these steps must first be completed. Goods issue can be posted by changing a single outbound delivery. Alternatively, you can use the collective processing function in order to select all deliveries for which goods issue is due to be posted, and then post the goods issue for them. You can also use the outbound delivery monitor to do this. You can also post the goods issue when the transfer order is confirmed. When you process a single outbound delivery, you can specify the actual goods issue date without changing the planned date. A dialog box appears in which you can enter the actual goods issue date, and then post goods issue for this date. The corresponding goods issue document is then posted with the actual goods issue date. If no explicit specifications are made for the goods issue date, the current date is taken as the goods issue date. Goods issue applies to the whole outbound delivery. Any errors are logged, for example, when data such as the batch or serial number is missing or when picking has not been carried out fully for the items. In these cases, goods issue is not posted.
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EFFECTS OF GOODS ISSUE POSTING
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After the goods issue has been posted; there is limited scope for changing the outbound delivery. In particular, no changes can be made to the quantities. At this point in processing, the delivery document has to reflect the actual physical delivery. Goods issue reduces warehouse stock posts the value change to the stock accounts in inventory accounting reduces delivery requirements enters status information in the outbound delivery is stored in the document flow creates a work list for billing To carry out billing before goods issue using the "Create billing document" transaction, you can make the appropriate settings in copy control in Customizing.
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If goods issue for an outbound delivery is canceled; the goods issue posting is reset. The system copies the quantities and values from the original goods issue document and carry out an inventory posting based on these quantities and values with a reversed +/- sign. If you cancel goods issue, this affects the entire outbound delivery. The cancellation document created during cancellation is entered in the document flow for the outbound delivery. After goods issue has been canceled, the goods movement status of the outbound delivery is reset to "Not yet started". This allows you to further process the outbound delivery as usual. The delivery requirements are also recreated. Canceling goods issue comprises two steps if the outbound delivery has been fully or partially billed. In this case you must first cancel the billing document. Then you can cancel goods issue. For each movement type in MM Inventory Management, you must define a reversal movement type in Customizing. No additional settings are required for the movement types used for goods issue posting in the standard system.
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PROOF OF DELIVERY (POD)
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Proof of delivery (POD) is essentially designed to support the process of only creating an invoice once the customer has confirmed the arrival of the goods. After receiving the goods, the ship-to party transfers the proof of delivery by IDoc to the R/3 System and thereby confirms the quantities for the whole delivery. In most cases for which there are no discrepancies of quantity, this involves no extra effort, because verification and confirmation are automated using the IDoc. If differences are reported, the delivery cannot automatically be confirmed. In this case, you must continue processing manually. You can use work lists for processing documents in conjunction with POB - the outbound deliveries for POB worklist and the Subsequent processing for POB worklist. The system creates the billing document based on the correct (verified) quantity. Creating the billing document via the billing due list is blocked until proof of delivery has been confirmed. Before you can use the proof of delivery function, you need to define which delivery item categories are relevant for the POB process. You also need to define reasons for deviation, and in the customer master you are using for the POB process, specify POB relevance. You can analyze deviation quantities and reasons for deviation (where, when, and why do the deviations occur?).
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Invoice is a legal document authenticating the transaction hence can be used as a reference for all payment relevant correspondences Useful for working out the sales statistics, profit and loss on buying price and selling price Invoices are the proof sale hence can give details on taxes
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Billing Functions: The following functions are supported by billing: Creation of invoices (and pro-forma invoices) on the basis of deliveries and services Transferring posting data to financial accounting Creation of credit and debit memos on the basis of requests Cancelling business transactions
Billing Processing: There are different ways to create a billing document: by specifying the documents (Sales order or Delivery) to be billed by processing manually from the billing due list by having the system process a billing due list automatically as a background task
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Also the following methods may be used for creation of an invoice.
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Interface to Financial Accounting During billing, the data relevant for accounting is passed on to financial accounting and posted to the corresponding accounts. These accounts are determined automatically on the basis of the account determination criteria in the billing document.
STRUCTURE OF BILLING DOCUMENT • • • • •
Header: VBRK: identification no of the payer, billing date, net value of the entire billing doc, doc currency, terms of payment and inco terms, partner numbers, pricing elements. Item: VBRP: material no, billing qty, net value of the individual items, weight & voln, number of the ref doc for the billing doc, pricing elements relevant for the individual items. The billing doc is controlled via the billing type The header data of a billing doc defines how the invoice is to behave It is not possible to have external no range for a billing doc.
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Copy Controls: How data is transferred in Billing Process?
Billing Document – Create: SAP Easy Access – Sales and Distribution – Billing – Billing Documents – Create Transaction Code: VF01
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The billing document represents the final function in the SD process chain. The billing document has different effects on various areas of the R/3 System. An important part of billing is the interface to Financial Accounting. This allows documents to be created automatically in Financial Accounting and Controlling when you create billing documents.
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BILLING TYPE CONTROLLS
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You can create new billing types or redefine existing ones in the standard R/3 System to meet the requirements of your company installation. Many of the control parameters in the billing type influence further processing in Financial Accounting (posting block, account determination). As of Release 4.0, new fields have been included in the billing type, representing special features of the SD/FI interface, such as document type, negative posting, branch/head office and value dated credit memos (see the unit on Special Features of the SD/FI Interface). In Release 4.6 you can use the report SDCHECKVOFA to check various settings within billing types for accuracy and consistency. (Note: This report does not perform a complete check of all settings. You can find information about it in the relevant report documentation).
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In Customizing for the item category, you can determine whether billing is to be carried out with reference to a delivery or an order. The system proposes a relevant billing type from the underlying sales document type. Example: In delivery-related billing, a standard order (order type OR) is invoiced using billing type F2. You can change the proposed value when creating billing documents by entering the required billing type in Default data.
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You can reference either an order or a delivery when creating an invoice. If you want to ensure that goods have already been shipped before an invoice is created, create an invoice with reference to a delivery.. Example: Delivering a carpet You can use an invoice to refer to an order and a delivery simultaneously. Example: You can create one invoice for goods (the carpet) and service (laying the carpet), as long as the corresponding requirements for combining the two are met (see the unit on Types of Settlements).
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If you want to invoice a customer for services rendered, you would normally create an invoice with reference to the sales order, because deliveries are not usually created for services. Example: Laying a carpet
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To cancel a billing document, you must create a cancellation document. The system copies data from the reference document into the cancellation and offsets the entry in Accounting. The reference document of the billing document (for example, the delivery for the cancelled invoice) can now be billed again. Credit memos can be cancelled with billing document type S2 in the standard system. You do not need to make an entry in copying control for cancellations. The parameters to be changed (for example, assignment number and reference number) are stored per billing type directly in the Cancellation area of the screen. As of Release 4.0B, you also have the option of canceling individual items in a billing document. Note: As of Release 3.0E, when you select cancellation, you branch to an overview screen containing the original billing document as well as the cancellation. Before updating, you can compare both documents in order to avoid any discrepancies during cancellation. During the update, the system also attempts to complete the billing document and the cancellation billing document, provided that forwarding of data to FI has not yet been carried out. In this way, the complete process remains within SD and data does not need to be forwarded to FI.
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You can create credit and debit memos either with reference to credit or debit memo requests (sales documents), or - if your company does not require a release procedure in the case complaints - directly with reference to a billing document (as of Release 4.5). You can create credit and debit memo requests: Without reference to a previous business transaction With reference to an order With reference to a billing document You can control in Customizing whether the system is to set a billing block automatically for a credit or debit memo request. The employee responsible can - Release the credit or debit memo request after review. The employee can decide the amount or quantity to be credited or debited. - Reject items in the credit or debit memo request and enter a reason for rejection.
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You can release a credit memo request or return by removing the billing block. If the complaint has not yet been justified you can enter a reason for rejection for each item. The value of these items will not be copied into the billing document. Using the reason for rejection allows you to control whether the item - Is copied into the credit memo with a zero value (see above) - Appears in the credit memo at all Debit memo requests are processed in exactly the same way.
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The invoice e correction request represents a combination of credit and debit memo requests. On the one side, credit is granted fully for the incorrect billing item while it is simultaneously debited (automatically created as a debit memo item). The difference created represents the final full amount to be credited. The invoice correction request must be created with reference to the corresponding billing document (no reference to order or inquiry). When creating an invoice correction request, the items are automatically duplicated (this means that for every item in the billing document, a second item is created). The resulting item categories must have opposite +/- values. First all credit memo items are listed followed by all debit memo items. The reference to the corresponding billing document is created when you specify the preceding document and the preceding item. The credit memo item cannot be changed. The corresponding debit memo item, however, can be updated according to new characteristics (e.g. new pricing, change in quantity). You can delete the credit and debit memos in pairs (unchanged pairs of items can be deleted all at once in this way).
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Quantity difference is used when a customer complaint is being processed due to a certain amount of damaged or sub-standard goods. The system corrects the quantity to be billed via the debit memo item. If other item pairs arise from the relevant billing document and these item pairs are unchanged, they can be deleted in one step, using the Delete unchanged items function.
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Price difference is used when a customer complaint is being processed for incorrect pricing of goods. A correction of the pricing elements must be carried out in the debit memo.
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Billing types for pro forma invoices are available for export transactions. You can create pro forma invoices with reference to orders or deliveries. You do not need to post goods issue before creating a delivery-related pro forma invoice. You can create as many pro forma invoices as required, since the billing status in the reference document is not updated. Data from pro forma invoices is not transferred to Accounting. Note: In copying control, the field Quantity/value pos./neg. is not available for entry in order to avoid the possibility of a pro forma invoice updating the quantity that has already been billed in the reference document.
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Each-billing document requires a reference document (exception: billing external transactions). This may be: Sales document Outbound delivery Billing document When billing explicitly, you must enter the number of the reference document as the transaction to be billed.
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You must always refer to an existing document when creating a billing document. Data will then be copied from the reference document to the billing document. For delivery-based billing, the quantities to be billed, for example, can be taken from the delivery; the prices, however are taken from the underlying order. The reference document is displayed as the source at header level in the copying control table.
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The network of documents in SD processing makes it possible for you to find all related proceeding and subsequent documents quickly and easily. You can also display individual documents from the document flow. Note: You can call the document flow for the complete order or for individual items. (Tip: To display the header document flow, you can branch directly to document flow from the Initial screen via Environment) Along with document flow, you can also use the status display to monitor processing of the transaction. Note: To ensure that you see all the subsequent documents created for the transaction within the document flow, you can look it up from the order display screen.
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You can, to a certain extent, influence the data flow from reference documents to billing documents. This is done using: billing types (for example, for texts, partners) copying control; the control options are as follows: At header level: Foreign trade data Allocation number Reference number Item number assignment At item level: Quantity Pricing You can also use data transfer routines to influence the data flow to meet your individual requirements. For example, terms of payment can be copied from the customer master instead of the preceding sales document.
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COPYING CONTROL
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The system administrator can define how data is transferred in the billing process in the copying control table. Controls are determined for: The header (target: billing type, source: sales document type) The item (target: billing type, source: sales document type, item category) The following controls are found at header level: Reference document: which documents may be used as reference for billing? Determination of foreign trade data, allocation numbers, reference numbers, and item numbers The following controls are found at item level: Billing quantity: which quantity should be invoiced - the order or delivery quantity? Pricing and exchange rate: Should pricing, for example, be carried out again or should prices from the order be copied over, and at what exchange rate? Updating the quantity and value in the reference document Where should the conditions in the billing document be carried over from (for example, copying Over shipment costs from the shipment cost document)?
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You can specify the requirements for billing a sales document under requirements in copying control. You can determine copying requirements for: The header Items With the requirements in copying control you can, for example, specify whether goods issue has to be posted before billing can be carried out. You can define your own requirements using transaction VOFM.
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Delivery and order quantities are referenced in billing. You can also take into account the quantity already billed (depending on the area for which the relevant billing type is used). The above examples have been defined in the standard version. This makes it possible, for example, to create an order-related billing document for quantities already delivered.
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You may decide to create invoices using a background job because it is practical and efficient. You can run the background job automatically in the following ways: Periodically (for example, every Monday at 2 a.m.) At a specific time (for example, June 19 at 8 p.m.) The system can divide the billing due list into multiple background jobs and start them simultaneously. In this way, you can make better use of your hardware by operating more than one processor. If you do not require a log or a detailed list, SAP recommends that you do not select these options in the selection screen. This will improve performance considerably.
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As a rule, the system attempts to combine all compatible transactions into a single billing document. In the SAP R/3 System, it is possible to include both order-related and delivery-related items in the same billing document.
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If the header partners or data in the header fields are not identical; the system will automatically perform an invoice split. All header partners and header fields in the billing document can cause an invoice split! Example: Terms of payment in the two orders are different (see above).
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Invoice lists contain various billing documents (invoices, credit and debit memos) and can be sent to a payer on specified days or at certain intervals. The system administrator has to maintain the following data in Customizing for Sales and Distribution: If you have agreed upon a factoring discount, maintain condition type RL00 (factoring discount) as well as condition type MW15. Each billing type to be included in an invoice list must be assigned an invoice list type. The SAP R/3 standard version includes two invoice list types: LR for invoices and debit memos, LG for credit memos You also need to maintain the following master data: Define a factory calendar, which specifies when invoice lists are to be created. Enter this factory calendar in the payer customer master record (Billing screen, Invoice list sched. field). Maintain condition records for condition type RL00 for the payer. Create output condition records for condition types LR00 and RD01 (You can determine whether invoice papers are sent to the customer upon invoice creation or only when the invoice list has been created). As of release 4.5 you are able to cancel invoice lists. In the case of factoring discounts, a corresponding cancellation document is created for FI.
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An installment plan allows the customer to pay in installments. Only one billing document is created for all of the installment payments. The printed invoice is created on the basis of this billing document and includes a list of individual payment dates and exact amounts. Each installment payment creates an accounts receivable line item posting in FI. You must define installment payment terms in Customizing. For installment payment terms, you must specify the number and amount of the installment in percentage and payment terms for each installment payment. When you post an invoice with installment payment terms, the system will generate the appropriate number of postings in the accounting document based on these specifications.
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When you save the billing document, the system automatically generates all the required documents for accounting. In accounting, the R/3 system carries out a debit posting on the customer receivables account and a credit posting on the revenue account. The accounting document contains all the completed postings in financial accounting that refer back to pricing in SD, for example, the receivable on the customer account or the obtained net sales and taxes on the relevant G/L accounts. When you save the billing document, further documents for accounting can be automatically generated by the system, for example, for the components Controlling (CO), profitability analysis, market segment analysis (CO-PA) or consolidation (FI-LC). When the billing document is posted, the following also occurs: the status in all related sales, delivery and billing documents, is updated the sales statistics in the sales information system are updated the customer credit account is updated Umbrella term for invoices, credit memo, debit memos, proforma invoices & cancellation documents. The billing doc is created with ref to a preceding document. The billing doc has header & item levels, but no schedule line level.
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BILLING DOCUMENT TYPE: controls the entire billing doc. (Tcode: VOFA) F1 F5 G2 RE IV BV B1 B3
Order related invoice Proforma invoice for sales order Credit memo Credit memo for returns Inter company billing (Invoice) Cash sale Rebate credit memo Rebate partial settlement
F2 F8 L2 S1 IG S2 B2 B4
Del related invoice Proforma invoice for delivery Debit memo Cancellation invoice (VF11) Inter company billing (Credit memo) Cancellation credit memo Rebate correction Rebate manual accruals
BILLING DOCUMENT CONTROLS:
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The no range for the doc number The billing type that can be used to cancel the billing doc The transfer status of the billing doc: transferred to fin accounting, blocked from transfer, not transferred The proc for account assignment in fin accounting The allowed output for a business transaction and the proc for output. The partner functions allowed at header level The partner functions allowed at item level Texts Rebates Invoice list type
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Delivery Related Invoice: if you want to ensure that goods have already been shipped before an invoice is created, create del related invoice
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Order Related Invoice: is created for services, since del is not created for service.
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Proforma Invoice: does not post any financial amounts in to any ledger. Billing type F8. Cancellation Invoice: is created when billing doc has errors or needs to be cancelled. Standard cancellation invoice for a F2 invoice is the billing type S1.
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When processing the billing due list, the R/3 System consolidates as many items as possible onto as few billing documents as possible. Depending on the system setting, these can either be order items or outbound delivery items. To be able to combine successfully, items must have specific common characteristics, for example, the same billing date, the same ship-to party, payer or terms of payment. The standard system contains a range of options for creating billing documents. You can choose the option that best suits your requirements. Here are a few of the most common options: Invoice split: You have a sales order for which you want to set up an outbound delivery. Two billing documents are created from the outbound delivery. Separate billing document for each outbound delivery: You have a sales order for which two outbound deliveries have been set up. Two billing documents are created from the outbound delivery. Collective invoice. You have two sales orders for which three outbound deliveries have been set up (for example, different ship-to party or partial delivery). A billing document is created from the outbound deliveries.
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SUMMARY OF BILLING 1. TYPES OF INVOICES
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a) Cancellation • To cancel Billing Document, so that Delivery or Order of Cancelled Billing Doc is due for billing again. • Cancellation of Individual Items in a Billing Document also possible. • During Update of Cancellation document, system tries to complete both docs provided main doc has not been forwarded to FI. • Copy Control: No requirement to maintain separate Copy Control for Cancellation Documents. Already maintained in the Main Billing Document Type. b) Invoice Correction (Credit or Debit Memo) • Can be created only with reference to a Billing Document. • Combination of Cr / Dr Memo Items for each item in the Invoice (because Inv Correction Request has Indicator D). • For Qty (goods are damaged) or Price Corrections. • Cr Item cannot be changed. All changes done to Dr Item. • Final Amt / Qty Credited = Fixed Cr Amt / Qty – Changed Dr Amt / Qty. • Automatic duplicate entries for each item (one for Cr & one for Dr) – first all Cr Items, then all Dr Items • Unchanged Items can be deleted in pairs (Cr Dr) • Copy Control (F2 RK): At Item level, two Item Categories (G2N & L2N) in RK are proposed for one item category TAN in F2. Two pricing types exist = Invoice Correction c) Proforma Invoices • For Export Transactions • Two types of PI’s = Order-related (F5) & Delivery-related (F8) • No need for PGI in case of F8. • No Accounting Documents generated. • Cannot be cancelled. • Billing Status in reference doc not updated, so many PI’s can be created. • In Copying Control, Qty/Val (+/-) is not available for entry to prevent PI updating Billed Qty in reference doc. d) Cash Sales • Order Related Billing • No new Price Determination (as Invoice has already been printed) • Can be made only after PGI • No Output Determination e) Invoice List Special Billing type which is a list of Invoices / Billing Documents made for a common Payer at certain intervals or on specified days. • Individual Bill docs must be created and posted to FI before Invoice List can be created. • Invoice List type (LF for Invoices / Dr Memos and LG for Cr Memos) should be included in the Billing Type. • Factory Calendar must be maintained in the Payer Master Record. • Condition RL00 (Factoring Discount) must be maintained for the Payer. This is statistical condition maintained in normal pricing procedure, but has A/c determination key ERS. • Output Condition Types are LR00 and RD01. • Possible whether individual Invoices are sent to customer or only Invoice list is sent. • Has separate number range. • Incoming Payments can be posted against Invoice List number.
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2) REFERENCE DOCUMENTS Process Standard Order Cash Sales Services Services & Standard Item
Primary Docs Order Order Delivery Order (no delivery) Service Item Standard Item
Reference Doc Delivery Order Order Order Delivery Credit Memo Request Credit Memo Request Credit Memo Request Invoice Original Invoice
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Credit Memo
Invoice Correction Req NO REFERENCE (Doc no. of external Doc) Delivery Order
Original Invoice
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External Transactions
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Proforma Invoice
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Rebates
Invoice
Invoice List Inter-company Billing
Cancel Invoice Cancel Cr Memo Cr / Dr Memo Invoice
Billing Documents Delivery
Invoice
Returns Order Rebate Request
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Credit Memo
Invoice Proforma Invoice Proforma Invoice Returns Cr Memo Rebate Cr Memo Invoice List
Delivery
Order
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Credit / Debit Memo
Billing Doc Invoice Invoice Invoice
3) CREATING BILLING DOCUMENTS a) Billing can be Manual or Collective, Foreground or Background. Block has to be removed in Reference Doc (Cr or Dr Memo…). b) Possible to bill partial qty’s or individual items to be billed for deliveries or orders by using Item Selection. c) For Delivery-related Billing, this is possible only if the Item Category has Billing Relevance K. d) Collective Billing using Billing Due List: Possible to Simulate Billing before doing it actually to check for errors. Possible to do Split Analysis here. e) Possible to include both order-related and delivery-related items in same Billing document. f) Periodic Billing: All deliveries due for Billing on a certain date can be billed collectively into one Invoice. Based on: • Maintain Individual Billing dates in Factory Calendar using special rules • Enter Factory Calendar in Payer Master Record. g) Invoices created in Collective Run are combined under a group number.
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h) Billing Date is decided at the time of Sales Order. It is determined from Invoice Date from Billing Schedule for the Customer else the Planned Goods Issue Date / Date of services rendered. i) Background processing is more efficient. Can be periodic or at specific time. j) Possible to collectively cancel Invoices created in one Collective run by reversing the run. k) External Billing: Possible to Invoice external documents (Sales Orders, Deliveries) not created in SAP. • Data must be in sequential file of specified format • Required fields: Specify min number of fields to be filled from the external Data • Optional fields: specify how remaining fields in Billing Document are to be populated (external or SAP). • External order numbers can be entered.
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4) EFFECTS OF BILLING a) Before Release to Accounting: • Billing Status in Sales, Delivery and Billing Documents updated. • Sales Statistics in SIS updated. b) After Release to Accounting: • All Accounting & CO Docs are generated. Receivables accounts are debited and Revenue Accounts are credited. If no Release to Accounting is done (due to errors or Posting Block) then NONE of the Accounting / CO documents are generated. • Posting to CO, CO-PA, and FI-LC also done. • Customer Credit Account is updated.
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5) INVOICE COMBINATION & SPLIT a) Deliveries can be combined if following are the same: • Payer • Billing Date • Destination Country b) Invoice split can occur if Header Partner / Header Data have differences. Possible to define additional Item-dependent split criteria in Copy Control in field VBRK-ZUKRI in Billing Doc Header. c) Individual Billing Documents for each Delivery / Sales Order (copy routine 3 – Single Inv containing Reference Doc number in VBRK-ZUKRI). 6) LINK TO FI a) Changing Billing Document Before Release to Accounting • Output • Billing Date • Pricing • Account Determination
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After Release to Accounting Output
b) No Copy Control from SD FI c) Posting Block (in Bill Doc Type): If no Posting Block, Release to Accounting is automatic on saving Bill Doc. In case of Posting Block, Release to Accounting done as separate step after saving the Bill Doc.
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d) Reference Number & Allocation Number (From Copy Control at Header level from Sls Doc/Dely Bill Doc) Reference Number Allocation Number In Customer Line Item of the Accounting Header of Accounting Document Document Used for Clearing incoming Payments for a Used for sorting Line Items for a Customer’s Customer receivables If Blank, field remains blank. Stored as Assignment in Bill Document Header. Can be If Blank, then Bill doc number used as splitting criteria from Delivery to Billing. In Invoice List, reference no from Invoice List overwrites reference from Individual Bill Docs of that list. • A: PO Number • B: Sales Order Number • C: Delivery Number • D: External Delivery Number • E: Bill Doc Number • F: External Delivery Number or Delivery Number
Head Office / Branch: Helps to decide which Payer for Accounting Document (Payer or Sold-to Party). For the Branch Customers, the Head Office field in Company Code view is populated with the Customer Code of the Head Office.
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e) Accounting Document Types: Contained in the Billing Type. If no document type is maintained, then default type is RV.
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g) Negative Postings: to post Cancellations / Credit Memos on same side of Account with negative values so that totals are 0. Only display of open items is changed. No effect on the Processes in FI. h) Value Dated Credit Memos: For Credit Memos created with respect to an Invoice, Credit Memo date should be later than the Invoice date even if Invoice Date is in future. If Invoice Date is later than today, then Credit Memo date is taken as Invoice date, else Credit Memo date is taken as today.
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BILLING – FI POSTINGS
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SD Example
10 pieces at $ 12 per piece
+ Goods issue:
10 pieces delivered, standard price $ 10 per piece
+ Invoice:
10 pieces at $ 12 per piece
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+ Sales order
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SD Example: Postings Material usage (Expenses)
Goods issue:
Stock (Assets)
100
100
Receivables (Assets)
Invoice:
Sales revenue (Revenues) 120
Incoming payment:
Receivables (Assets)
Bank (Assets)
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In the example of an SD business transaction, an accounting document is created at the point of goods issue and/or invoice creation. At the point of goods issue, the goods physically leave the warehouse. This results in a stock-related and value-related posting. This means that the stock is reduced and the materials used increased. The posting is therefore called "Materials used to stock". At the point of billing, the customer accumulates receivables, and additions are posted to sales revenues (posting record: Receivables to sales revenues). If the incoming payment is made in FI, the receivables are reduced again and the amount of the cash inflow is posted to a bank account (posting record: Bank to receivables). Posting output tax has been ignored or the purposes of this simplified example.
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SD / FI INTERFACE IN BILLING DOCUMENT
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The system sends billing data in invoices, credit memos, and debit memos to Financial Accounting and posts them to the correct accounts. The following data can be changed before an accounting document is created: 1. Billing date 2. Pricing 3. Account determination 4. Output determination data Once the billing document has been released to accounts; you can only change output data.
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Normally, the system automatically transfers accounting-related data to Financial Accounting. However, you might not want the data to be transferred automatically for certain billing types. In that case you can set a posting block for the billing type concerned. The system will then generate the accounting documents only after you have released the billing documents. This allows you to generate SD billing documents first, then print out the billing documents and finally, transfer them to Financial Accounting. In this way you can improve system performance, for example. Note: The system either generates all or none of the accounting documents. This means that if the posting block is active, or errors have occurred during account determination, the system will not create CO documents. The accounting documents will not be created until you have de-activated the block or corrected the error.
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Reference Numbers and Allocation Numbers
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You can automatically fill the Reference number and Allocation number fields in the accounting document with numbers from SD documents. The reference number is in the header of the accounting document and is used for clearing. The allocation number is in the customer line item and is used for sorting line numbers. In Customizing for copying control in billing, you can define which numbers will be copied as reference or allocation numbers: A - Purchase order number B - Sales order number C - Delivery number D - External delivery number E - Billing document number F - External delivery number if available, otherwise delivery number
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SD / CO - PA Interface
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There are two procedures for profitability analysis: costing-based and account-based. Both procedures can be used in parallel. However, before drill-down reporting you must set it to either costing-based or account-based.
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Order processing is the focal point of SD activities and contains three principle stages: Order entry, delivery with goods issue, and billing. In costing-based profitability analysis, data is transferred to CO-PA as soon as an order is entered. The system generates a line item with a profitability analysis document for each sales order item. In the same way, the billing data are also transferred online. The system generates a line item for each billing item. In account-based profitability analysis, data is transferred to CO-PA when it is posted to FI from SD. This means that when the financial accounting documents are generated for goods issue and in billing, the system creates line items in CO-PA and transfers the data to the accounting valuation base. Data is not transferred when a sales order is entered because nothing is posted to FI at that stage.
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CO-PA calculates the profit for a certain profitability segment by transferring data from SD. The profitability segment is defined by certain characteristics and characteristic values and these determine what should be evaluated. Example: an evaluation is made for the profitability segment "motorcycles, retail, southeast region". These characteristic values can be freely defined. They are taken from the header or the item in the sales document. The real evaluation of profitability segments takes place using key figures (evaluation sizes). In costing-based profitability analysis, the key figures are the quantity and value fields such as price, quantity, discount, and weight. This data comes from SD documents. In account-based profitability segments, the evaluation takes place in account groupings. The data is taken from the relevant accounting documents in FI.
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25. CUSMTOMER COMPLAINTS Returns—Purpose: To address products that customer has returned due to complaints. The complaints may be due to 1. Quality defects 2. Incorrect Deliveries 3. Products damaged in transit, etc..
Once the analysis of returned goods complete manufacturer determines : 1. Goods are sent either for rework or scrap 2. Whether customer will be credited for goods and if yes, in what amount
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If Customer Returns the Goods: If Goods have been rejected by Customer and are returned.
Dotted line indicates that return doesn’t have to refer preceding document.
VA01: Return Order (Order Type: RE) (Item Category: REN) & enter, Create Return Order with ref to Sales Order No. Give order no & click on Copy (F5) and change the order quantity say from 50 boxes to 20 boxes.
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VL01N: Return Delivery VL09: Goods Reversal.
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If Customer Wants Refund For the Amount: or credit memo: Done if Goods have been delivered and Billed to Customer, and customer complains about shortfall in quantity / quality of the goods received.
Sales Order (OR)
Delivery (LF)
Credit Memo Request
Remove Billing Block
Invoice (F2)
Release to
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Credit Memo (G2)
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VA01: (Order Type: RE), (Item Category: REN), (with ref to sales order) VL01N: Return Delivery VL09: Goods Reversal VA01: Credit Memo Request (Order Type: G2), (Item Category: G2N), (with ref to Return Order, please remove billing block) VF01: Credit memo. If the customer wants refund for the amount, enter a credit memo with ref to the return.
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• • • • • • •
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If Customer Wants Replacement: If the customer wants replacement product, enter a free of charge subsequent delivery with ref to the return. VA01: (Order Type: RE) with reference to Sales Order. VL01N: Return Delivery VL09: Goods Reversal VA01: Free of charge Subsequent Delivery (Order Type: SDF) VL01N: delivery LT03: picking VL02N: goods issue
The Customer Does Not Send the Goods Back: • • • •
If the customer wants a replacement product, you create a free of charge subsequent delivery with ref to sales order If the customer wants a refund, you enter a credit memo request, with ref to the sales order or invoice. VA01: credit memo request (G2) or free of charge subsequent delivery (SDF) with ref to sales order. For SDF there will be delivery, picking, and goods issue. VF01: invoice
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For Damaged Replacement: • • • •
VA01: free of charge subsequent delivery (SDF) with ref to sales order VL01N LT03 VL02N
Debit Memo Request: (Order Type: L2) & (Item Category: L2N) In case excess Goods have been delivered. Follow the same process as for credit memo. A debit memo request is a sales document used in complaints processing to request debit for a customer. You can create a debit memo request if the prices calculated for the customer were to low. Remove the Billing Block.
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VA01: debit memo request with reference to invoice or order VF01: debit memo
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Invoice Correction Request:
A sales doc used in complaints processing to correct the quantity or price of one or more items in an invoice.
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Each invoice correction request that is made in ref to an invoice contains 2 items for each item in the invoice (you cannot create an invoice correction request in ref to a sales or delivery doc type), viz Firstcredit item & Second Debit item. These contain the same value and quantity. The first item is the copied value & quantity copied from the invoice, this item appears as credit item. The second item is the debit item, which represents the correct quantity &/ or the value.
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If you want the system to generate a credit memo for a +ve amount, and a debit memo for a –ve amount, you need to set an additional sales document type in customizing, for e.g., ZRK1 (invoice correction request for debit memos). You can change these settings in customizing under Sales Sales Document Sales Document Header Define Sales Doc Types in the “Sales Catalog Field”. If the invoice correction request is characterized as a credit memo request, that is, the doc type RK has the characteristic as ‘K’ in the sales doc catalog field & has order related billing assigned to it in the form of G2 or credit memo, the system creates a credit memo for +ve value. For debit memo the characteristic will be ‘L’ & has order related billing assigned to it in the form of L2, the system creates a debit memo for a –ve value. • • • •
You create invoice correction request with ref to an invoice. Price 100 o 110: credit memo o 90: debit memo VA01: (Order Type: RK) with ref to invoice VF01: automatic credit or debit memo.
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Delivery Free of Charge: (Doc Type: FD) A Free of Charge Delivery is used to send samples or free products to the customer free of charge. • The customer is not billed for the goods delivered. • Has Delivery Block, and can be rejected. No Invoicing. PI can be used. • Free of charge, is recorded using the order document type – FD. • The delivery is actually only relevant for deliveries and not invoicing. The delivery type used is the standard delivery type- LF. • The item category – KLN is not relevant for billing and pricing.
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VA01 VL01N LT03 VL02N When you create a free of charge delivery you must enter a value in the order reason field or the system informs you that the doc is incomplete.
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• • • • •
Remove Dely Block
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Subsequent Delivery Free of Charge: (Order Type: SDF) (Item Category: KLN) Subsequent Delivery Free of Charge involves the delivery of goods free of charge in response to the complaints raised by the customers with respect to the quantity or quality differences. • • • • •
A free of charge subsequent delivery document-SDF is used to send products later to the customer free of charge against any complaints made by the customer. The standard delivery type – LF is configured for this transaction. The transaction is not relevant for billing as the items are free. The standard item category- KLN is used which is not relevant for billing and pricing. A subsequent delivery of charge is usually created with reference to the previous order.
Sales Order or Returns (RE)
Remove Dely Block
Delivery (LF)
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To deliver Free of Charge Goods if Customer receives too few goods or if the goods have been damaged in the shipment. It must be based on existing Order. Has Delivery Block, and can be rejected. No Invoicing. PI can be used.
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To create a free of charge subsequent delivery, you have to refer to an existing sales doc, such as: sales orders, contracts, and contracts release orders.
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Returns: (Order Type: RE) (Item Category: REN) A return is a sales document used in complaints processing for when a customer sends goods back. You can create the return in one of the following ways: without ref to an order, with ref to an invoice, with ref to contracts, contract release orders, billing doc. It may be worthwhile ensuring the return order reason was entered on the sales doc. Thus, it may be necessary to add this in an incompletion proc.
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It is advisable to indicate a shipping cond that is specifically used for returns. This is useful when running del due list. Credit Memo: (Order Type: G2) (Item Category: G2N) A credit memo request is a sales doc used in complaints processing to request a credit for a customer. The credit proc generally follows 2 business procedures; the first being the scenario where the customer returns products previously purchased & requires a credit. The second general form of credit proc is when the customer is credit without ref to a return (goods not returned or customer overcharged).
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You can also set a mandatory that the credit memo request can only be created with ref. You can create a credit or debit memo request with ref to an existing order, with ref to an existing order, with ref to an invoice, with ref to contracts, contract release orders, billing doc.
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You may not wish to credit for every thing, such as the entire freight charge from one invoice. You can instead have a new pricing proc in the credit memo request that is similar to the standard pricing proc you use, but not have the freight cond type. Thus the standard values are copied over, excluding freight.
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26. PRICING Pricing is the combination of creating correct pricing procedure that map the business needs & processes, such as correct pricing & discounting, & keeping to the legal requirements placed on the business, such as adhering to the tax laws of the country. The term Pricing is used broadly to describe the calculation of prices and costs.
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Condition Technique - Example
SPRO- IMG- SD- Basic Functions- Pricing- Pricing Control— • • • •
Create Condition Table: V/03, V/04, V/05 Define Access Sequence: V/07 Define Condition Types: V/06 Define & Assign Pricing Procedure o Maintain Pricing Procedure: V/08 o Define CuPP: OVKP o Define DoPP: OVKI. The DoPP indicator is used to determine pricing in conjunction with the sales area & CuPP. o Assign DoPP to Order Types & Billing Types: OVKJ & OVTP o Define Pricing Procedure Determination: OVKK
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1. Create Condition Table: V/03, 04, 05 Condition table contain the key fields for maintaining condition records. In other words condition records are stored in condition table. Put the most general field for e.g., Sales Orgn in the highest position & the most specific field in the lowest. After organizational fields, place fields from doc header before those that come from item level (customer comes before material). A condition type can have multiple condition tables. A condition table can be used for multiple condition types. • • •
Sales Orgn, Distbn Channel, Div, Cust, Mat: Customer Specific Price Sales Orgn, Distbn Channel, Div, Price List Type, Mat: Price List Sales Orgn, Distbn Channel, Div, Mat: Material Price.
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Menu path: IMG Sales and Distribution Basic functions Pricing Pricing Control Define Condition table.
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T-code: V/03
Condition Table - Configuration
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2. Maintain Access Sequence: V/07 (Most specific to most general)
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There are few condition types for which you do not create cond records (header discounts that you can only enter manually). These cond types do not require an access sequence. An Access sequence can be used or assigned to multiple condition types.
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Access sequence is a search strategy with the help of which the system gets the valid condition records. It contains the required condition tables in the required order. Go to new entries, define 4-digit acc seq. Select acc seq, go to Accesses and place the cond tables and check exclusive indicator (which determines that if a cond record is successfully found, the system will stop searching further). Select each cond table and go to Fields.
Menu Path: IMG Sales and Distribution Basic functions Pricing Pricing Control Define Access Sequence. T-code: V/07
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Access Sequence - Configuration Access Sequence consists of accesses which specify the access number or the sequence in which the system searches the condition tables for the required data. Requirement can be specified for each condition table thereby ensuring system access that condition record only on fulfillment of certain conditions.
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Activation of exclusive indicator limits the access to the first match.
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The access sequence refers to the fields which are relevant for pricing using the condition tables contained in the access sequence.
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3. Define Condition Type: V/06: Condition type is a group of relevant conditions. It tells the behavior of a record. Condition types are used in the pricing procedure to define how the cond is going to perform, such as either a %tage or a fixed amount. The cond type can be automatic or it can allow manual changes. Copy the required cond type and rename. Then assign acc seq to cond type. •
If you use different calculation types for what are otherwise the same conditions (for e.g., %tage, as fixed amt, qty dependent), you do not have to define different cond types in customizing. You can set different calculation type when maintaining cond records.
Menu Path: IMG Sales and Distribution Basic functions Pricing Pricing Control Define Condition type.
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T-code: V/06
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Condition Type - Configuration
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Various control parameters are defined for each condition type, which determines its behavior while pricing.
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Access Sequence: in this field specify the corresponding access sequence for the condition type. Condition Class: surcharge & discounts or prices A – Discount / surcharges B – Prices C – Expense reimbursement used in Rebates. D – Taxes G – VPRS. Plus/Minus: -ve, +ve or both Condition category: It’s a classification of conditions according to pre-defined categories. Calculation Type: fixed amt, %tage, qty, wt, voln Rounding rule: commercial, round up and round down Group Cond: if we check a header condition as a group condition the condition amount is distributed proportionately among all the line items in the sales document. Manual Entry: whether manual or automatic entry has priority Header Cond: after entering the header cond type click on the button activate. The cond amt of the header condition is copied as it is to all the line items in the doc. Item Cond: if we check this field for a condition types it becomes item condition, which ahs to be enter at the item level only. Amount/ Percent: check & u can change the amount or % for the cond type during data processing Delete: check & the cond record may be deleted from the doc. Value: check & the value of the cond type can be changed during data processing Calculation Type: check & the cal type can be changed during doc processing Valid from & to: specifies the beginning and ending of the validity date that the system automatically proposes when we create condition records for the condition types.
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Functionality of Condition Types:
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Scale Basis: determines how the system interprets a pricing scale in a cond, for e.g., the scale can be based on qty, wt, voln Check Value: indicates whether the scale rates must be entered in ascending or descending order.
4. Define and Assign Pricing Procedure: V/08 A pricing proc consists a list of condition types in a defined order, such as price less discount plus tax. Go to new entries; define 6-digit pricing proc with descp. Select the 6-digit pricing proc and go to Control Data, you will be faced with an empty structure. Menu Path: IMG Sales and Distribution Basic Functions Pricing Pricing Control Define and assign Pricing Procedure.
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T-Code: V/08
Pricing Procedure - Configuration
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Pricing Procedure consists of a group of allowed condition types placed in the sequence of their execution.
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Step: the no that determines the sequence no of a cond type with in a procedure Counter: second mini step with in an actual step Condition type: specify the cond type Description: Description of the condition type, you need not type. From & To: if you specify the ref steps in these fields, the cond values of the 2 steps specified and steps in between are totaled Manual: If you check this field the condition type is only included in determination either if they are entered manually. Mandatory: whether a cond type is mandatory when system carries out pricing. The Mdt column identifies those condition types that are mandatory in the pricing procedure. Mandatory condition types are the sales price or the cost price. Should a mandatory cond typ not be found in the procedure, the system will throw an error in pricing? Statistical: the value represented in this step will not alter the overall value. The condition type marked as statistical or Stat will not be included in the net value calculation for that item. The net value is displayed in the item details of the order and invoice, and the total of all items’ net values is displayed on the order and invoice document.
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VPRS:- Cost PI01 – Inter company price. SKTV – Cash discount SKTO – Cash discount. Print: which cond types should be printed on a doc (order confirmation, invoices) Subtotal: controls whether & in which fields the cond amts or subtotals are stored. The subtotal field assigns a subtotal key to a step in the pricing procedure. These subtotal fields are then used in other areas of the system such as in logistics information system (LIS). For example, it is recommended to assign the subtotal field 4 to the total value in the pricing procedure for Freight. Requirement: for a cond type to be executed in the sales doc the requirement specified here must be satisfied. (It is a gateway). The requirement is used to assign a requirement to the
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condition type. This requirement can then be used to exclude the system from accessing the condition type and trying to determine a value.
Alternative Calculation Type: The column AltCty specifies that the system is to use the formula represented in this column as an alternative in finding the value of the condition type, rather than by using the standard condition technique. For example, this can be used to calculate complex tax scenarios.
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2 – Item with pricing used in discounts. 9 – Cash discount after tax. 10 – Plant is set, used for Tax condition. 14 – Discount before tax 21 – Invoice list control 24 – Rebates get effect in Billing doc not in sales order
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Alternative Cond Base Value: alternative formula for determining the cond basis (amt to which the discount or surcharge in a scale refers). The column AltCBV is a formula assigned to a condition type in order to promote an alternative base value for the calculation of a value. For example, one can specify a formula that uses a subtotal, such as 4, from the Subtotal field, modify it slightly, such as dividing it by 2, and then using the resultant value as a base value for the condition type.
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2 – Net value 6 – Initial price 8 – Expected value 9 – Expected price 11 – profit margin
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Alternative formula to the formula in the standard system that determines the cond. In the std SAP system for the cust expected price EDI1, the alt cal type is 9, which means it contains a routine with a logic which states that the difference between the customer expected price & the net value is zero.
2 – Net value 3 – Net price 4 – Net value plus tax 11 – cash discount base 28 – 100% discount 29 – Free goods / Inclusive.
Account Key: this field enables the system to post the sales value to different G/L accounts. ERL: sales revenues, ERS: sales deductions, ERF: freight revenue. Accruals: this is exclusively for rebate cond types BO01 & BO02. Key, which identifies various types of G/L accounts for accrual postings.
Note: To maintain your own requirements and routines use the transaction code -- VOFM VPRS: Cost: Cost pick up from MMD of Accounting view 1. TAX: MWST Tax is calculated on the following parameters: •
Plant
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Ship to party region Customer tax classification Material tax classification
5. Pricing Procedure Determination: OVKK: Determination Rule Before one can proceed with the determination rule, one needs to maintain the CuPP & DoPP. One needs to assign a single character alphanumeric key with a short descp. Then assign the DoPP to the sales doc types. This will ensure that for e.g., all sales orders created using order type OR, which has been assigned a DoPP of 1, will all use the same pricing proc if created in the same sales area & with the same CuPP. In some instances, you may not want to have the same pricing proc for a sales doc, as you may want in a billing doc. For this reason, you may allocate a different DoPP to a billing doc.
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Do not forget to assign the CuPP indicator to your CMD in the Sales Screen
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Menu path: IMG Sales and Distribution Basic functions Pricing Pricing Control Define and Assign Pricing Procedures Define Pricing Procedure Determination T-code: OVKK
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Sales Orgn + Distbn + Division + CuPP indicator + DoPP indicator = Pricing Procedure
To Create own Sales Doc Types: SPRO- IMG- Sales Doc- Sales Doc Header• •
Define sales doc types: VOV8. Copy std order type& rename Assign Sales area to Sales Doc Types: o Combine sales orgn o Combine Distbn channel o Combine division o Assign sales order types to permitted sales area
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To create Price List Types: Pricing Relevant Customer Master Data Fields: Menu Path: IMG Sales and Distribution Basic Functions Pricing Maintain Price-Relevant Master Data Fields Define Price List Categories for Cust. & Define Pricing Groups for Cust. T-Code: OVKP & VD02 • •
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Define price list category for customers: OVSI: assign to CMD sales area screen in price list type field, in sales tab page in pricing and statistics section. Define pricing group for customers: OVSL: assign to CMD sales area screen in price group field, in sales tab page in pricing and statistics section. Define material group: OVSJ: assign to sales orgn 2 view of MMR in Mat Pricing Group Field. 2 digits character key with description
Pricing Relevant Material Master Data Fields Menu Path: IMG Sales and Distribution Basic Functions Pricing Maintain PriceRelevant Master Data Fields Define Material Groups T-Code: MM02
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Pricing Relevant Sales Document Fields
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T Code: OVKI & OVKJ
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Menu Path: IMG Sales and Distribution Basic Functions Pricing Pricing Control Define and Assign Pricing Procedures Define Doc. Pricing Procedure & Assign Doc Pricing procedure to Order types
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Pricing Relevant Data Fields - In Order
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Different Condition Types in Pricing Cond Type BO01 BO02 BO03 BO04 BO05 BO06
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Cond Class
Description
Calculation Type
Exp reimbursement Exp reimbursement Exp reimbursement Exp reimbursement Exp reimbursement Exp reimbursement
Percentage Qty (fixed) Percentage Percentage Percentage Fixed amount
EDI1 HB00 HD00
Cust Expected Price Discount (value) Freight
Prices Discount / Surcharge Discount / Surcharge
Quantity Fixed amount Gross weight
K004 K005 K007 K020 K029 K030 K031 K032 KF00 NRAB
Material Customer / Material Customer discount Price group Material Pricing Group Customer/ Mat Group Price Grp/ Mat Pr Group Price Grp/ Material Freight Free Goods
Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge Discount / Surcharge
PI01 PI02 RB00 PR00 VPRS RL00 MW15 SKT0
Inter company price Inter company % Discount / value Price Cost Factoring Discount Factoring Discount Tax Cash discount
Prices Prices Discount / Surcharge Prices Prices Discount / Surcharge Taxes
Quantity (fixed) Percentage Fixed amount Quantity Quantity Percentage Percentage
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Qty / absolute Qty / absolute Percentage Percentage Absolute discount by wt Percentage Percentage Quantity / absolute Gross weight Quantity
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Group rebate Mat rebate Cust rebate Hierarchy rebate Hierarchy rebate / Mat Sales Independent Rebate
Customer Specific Price: sales orgn, distbn, division, customer & material Price List Price: sales orgn, distbn, division, price list type & material Material Price: sales orgn, distbn, division & material Customer discount: sales orgn, distbn, division & customer Customer material discount: sales orgn, distbn, division, customer & material or sales orgn, distbn, customer & material. Material discount: sales orgn, distbn, division & material or sales orgn, distbn & mat.
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6. Condition Records: VK11/12/13: Condition Records store the actual value for all the pricing elements. Condition records allow you to store & retrieve pricing data in the system. Pricing elements are generally managed at the sales orgn & distbn channel level. There fore you always have to specify organizational level when creating cond records. In the case of cond records for price groups, freight charges, & cust specific prices & discounts you must also enter the division. As a result, you can create conditions according to product groups with these price elements. Menu Path: Easy Access Logistics Sales and Distribution Master Data Conditions Select using Condition Type Create T-Code: VK11
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Condition Maintenance Menu Path: Easy Access Logistics Sales and Distribution Master Data Conditions Create
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T-Code: VK31
Condition Record - Create Condition records can also be created with reference to those already having similar data but vary on accounts like validity period, etc. During the process, changes can be made to the rate, validity period, and additional sales data, etc.
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Pricing Elements in Sales Order:
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Price: the basis of pricing during sales order processing is the gross price of the mat. The system selects the most specific record- the cust specific price. If it does not exist, the system looks for price list type. If it also does not exist then system takes the basic material price. You can define price list types by customer groups (wholesale or retail) or by currency (price lists for each foreign country dealt with) Surcharge & Discounts: Freight Costs: you can create cond record either based on: the first part of the inco term (for e.g. FOB) or on the combination of part 1 & 2 (for e.g. FOB & Boston). There are 2 predefined freight conditions o KF00: applies to each item in a sales doc. o HD00: applies to entire document. Sales Taxes:
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Tax Classification Price Material: you can specify another material as ref for pricing info Material Group: defines a group of materials for which you want to apply the same cond record. Cash Discount: whether or not mat qualifies for cash discount
Customer Master Data: the price related fields appear on sales data screen. • • • •
CuPP: specify the pricing proc for a customer Price List: Allow you to apply a mat price in a particular currency to a group of customer’s e.g. wholesale customers. Price Group: price group lets you apply a discount to a particular group of customers. Tax Classification: billing tab page.
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Let Me:
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Use the Transaction Codes below to create Pricing Condition Technique.
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Tips and Tricks
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Pricing in the sales document can be analyzed using Analysis button in the conditions overview screen at the Item level
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Condition types accessed and their nature No of Accesses available fro each condition type Condition Record and their values.
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With the help of analysis we can try to figure out how the system has carried out the pricing in the sales document. Analysis provides information on:
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HEADER & ITEM CONDITIONS The standard system includes cond types that you can apply at only the header level, the header conditions. Cond types that you can only use for items are called item conditions. There are some cond types that can be used at both header & item level: • • •
RA01: percent from gross RB00: absolute discount RD00: weight discount
Header Conditions: you cannot create cond records for it; it is entered manually in order processing. Automatic pricing does not take place for them.
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HA00: percent discount HB00: absolute discount HD00: freight HM00: order value
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Item Conditions: in the std SAP most cond types are defined as item conditions:
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K004: mat discount K005: cust/ mat discount K007: cust discount PR01: mat price KF00: freight
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Distribution between Header & Item:
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Header conditions apply to all items in the doc & are automatically distributed to all the items. It can be either percentage or an absolute amount. If you enter a header cond that is based on a percentage (e.g., a dis of 2% ) the system automatically applies this percentage to all the items in the doc. If the header cond is an absolute amount, there are 2 ways in which the system can distribute the amount among the items in the doc: • •
Distributed proportionally among the items Amount entered at header level is duplicated for each item.
You control the distribution of absolute header condition in the Group Price Field per cond type. •
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HB00: header discount distributed as percentage because it is marked as a header cond & group condition. The system distributes the amt proportionally among the various items, in this case according to the value of the items. The distribution of an absolute header cond need not be based on value. For e.g. you can specify in customizing for sales that the distribution is based on weight & volume of the different items. You can specify the basis of distribution in the ‘Alternative Cond Base Value’ field in the pricing screen. RB00: assigns the header discount to each item identically, because it is only marked as header condition.
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PRICING SCALES Scale Basis: In the standard system, a pricing scale can be based on any of the following criteria: Value Quantity Gross weight Net weight Volume A formula specific to your requirement. The scale basis is defined in customizing for sales for each cond type
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Select line item and choose Scales Icon from tool bar or choose Go To Scales in the fast entry screen of the cond record. Enter a scale quantity & a rate & save cond record Scale can be descending scale (50/-, 40/-, 30/-) or ascending scale (2%, 3%, 4%)
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Specifying Scale Types:
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Special Features of Calculating the Scale Base Value: In Customizing for Sales, you can define a condition type as a group condition (for a group cond to be effective, the items must belong to a group. You can freely define the group to meet the needs of your own orgn. A group condition means, for example, that the system bases a discount on the combined quantities of more than one item in a sales document. The combined quantities may mean that the customer gets a better price than if the items were priced individually. K020 is a group condition. Pricing with Graduated Scales: You can maintain condition records with graduated scales. Using a graduated scale allows you to price an item for each level of a pricing scale. By comparison, when you use normal scales, the system determines one price depending, for example, on the item quantity; the same price then applies to each unit of the item. With graduated scales, the result is that multiples prices can appear in the pricing screen for an individual item. For e.g. refer book 2 page 54. How Graduated Scales are controlled: The use of graduated scales is controlled in Customizing for SD. The scale type is entered for the definition of a condition type. The standard R/3 System includes condition type PR02 (Price with graduated scale)(Scale Type: D: graduated to interval scale). Graduated scales are used in prices, discounts and surcharges. However you cannot use graduated scales for group conditions.
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CONDITION SUPPLEMENTS A Cond Supplement is a supplement for a particular cond type. A cond supplement is a group of conditions that should be applied every time a certain cond is found. For e.g., if you define a material price, you would enter cond records for every material. If, for one of those materials, you also wanted to include a discount every time the price is determined, you can enter the additional cond type as a cond supplement. When SAP determines the cond record in the pricing proc, it will automatically also include the discount cond record. Procedure:
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Create the cond type that are to be defined as cond supplements V/08: create a new pricing proc & list all the conditions that are to form the cond supplement in this procedure. V/06: in the cond type that the supplement applies to, enter the pricing proc one has just defined. Master Data Pricing Proc Field. Enter the cond record, select line item & Go To Conditon Supplement or just click on Cond Supplement Icon from tool bar. You can enter the cond supplements for all the cond types defined in the new pricing proc. Determination Rule: S.O, Distbn, Div, CuPP, DoPP, New Pricing Proc, Old Cond Type e.g., RDIL, RW, GM, A, 1, NEWPR0, PR00. You can only enter a cond supplement if the cond type you are working with has already been defined in Customizing for Sales to include cond supplements.
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PRICING LIMITS (UPPER & LOWER LIMITS): OVB2
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Cond types offer an automatic or manually determined value according to their determination. If it can be manually altered, it enables the user the opportunity to overcharge or undercharged. For this reason, we can govern the cond type with limits. SPRO- IMG- SD- Basic Functions- Pricing- Pricing Control- Define Upper & Lower Limits for Cond. • • •
On the overview screen of the cond record, select the line item and then choose Go To Details or simply click on Magnifying Glass on the tool bar. Here you can maintain upper & lower limits. The cond type’s calculation type controls the calculation type of the limit. If during manual processing, you exceed or drop below a defined limit, the system informs you with an error message.
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CONDITION UPDATE • • •
Enter the max value / qty/ number in the max cond value, max cond base value, max no of orders field
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V/06: Go To PR00 details & in the Master Data Check Condition Update. VK11: Choose the line item & click on Additional Data Icon from tool bar or from the main menu bar Go To Additional Data Cond update provides the function for the following pricing functions: o Maximum value o Maximum quantity o Maximum no of sales orders: three
Within the condition record, choose Extras
Cumulative values.
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To view the cumulative value, quantity, no of orders for a particular condition record:
A dialog box displays the cumulative base value (in this case, the quantity) of sales orders where this condition record was used.
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Within the dialog box, you can branch to the cumulative value of related billing documents or to a list of the latest sales orders. You can also branch to the individual sales orders.
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CONDITION EXCLUSION GROUP
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In pricing for sales and billing documents, more than one condition record may apply to a particular item at any one time. You can use the condition exclusion process to compare possible conditions in order to determine such things as the best price for a customer. SPRO- IMG- SD- Basic Functions- Pricing- Pricing Control- Condition Exclusion- Cond Exclusion for Group of Conditions: • • •
Define cond exclusion group: OV31 Assign cond types to the exclusion groups: OV32 Assign exclusion to pricing procedure: VOK8
A cond exclusion group is merely a grouping of cond types that are compared to each other during pricing & result in the exclusion of particular cond types with in a group or entire groups. The procedure according to which the selection is carried out within or between the condition exclusion groups is defined in the pricing procedure. The following options are possible: •
Selection of the most (least) favorable condition type within a condition exclusion group
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Selection of the most (least) favorable condition record of a condition type, if more valid condition records exist (for example, selection from different condition records of the condition type PR00)
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Selection of the most (least) favorable of two condition exclusion groups (in this case, all condition types of the two groups are cumulated and the totals are compared)
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Exclusion procedure: If a condition type in the first group exists in the document, all condition types in the second group are set to inactive.
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Best / Least cond records, with in cond types Best / Least cond record, between cond types Best / Least cond record, with in exclusion group Best / Least cond record, between exclusion groups
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Create a condition exclusion group by entering an alphanumeric key with a maximum of four characters and a description. Allocate the condition types to a condition exclusion group. A condition exclusion group can contain any number of condition types. Enter the condition exclusion group in the pricing procedure that you use in pricing (Go to -> Exclusion groups). The condition exclusion indicator is not valid for cond supplements. This means if a cond record contains cond supplements they will be taken in to account during pricing. After selecting the pricing proc for which you want the cond exclusion to be active, select the button “ Exclusion”. Deactivate Exclusion in access sequence when ever you active exclusion group.
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FREE GOODS DETERMINATION: Free goods refer to the process where the business offers a scheme where the customers can get free goods if they buy certain products of certain quantities
Constraints: • •
Free goods are currently only supported on a 1:1 basis. Free goods is not currently supported in combination with material structures (e.g. product selection, BOM, variants with BOM selection)
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• • •
Free goods is currently only supported for sales orders with doc category ‘C’ (not for quotations, for e.g.) Free goods is not currently supported for deliveries without ref to sales order Free goods are not currently supported for make to order prodn, third party order processing & scheduling agreements.
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The following steps are involved in free goods determination:
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Free Goods Determination Procedure: Menu Path: IMG > SD > Basic Functions > Free goods > Condition technique for free goods.
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P _R P_ O 2C SA o_ Tw ps Ap Determine Item Categories for Free Goods: The Item Category for Free Goods (standard TANN) is determined as below. The determination combination has Usage as FREE and a Higher Level Item Category as TAN. IMG > SD > Basic Functions > Free goods > Determine item categories for free goods items
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Control Free Goods Pricing: IMG > SD > Basic Functions > Free goods > Control free goods pricing
Maintain Copy Control: We maintain the copy controls at item category level. The control with the 'Structure/ New Free Goods' field is most relevant for free goods. Here we can control whether the free goods should also be transferred when you copy from one order to another, or whether we should redetermine them. IMG > SD > Basic Functions > Free goods > Maintain copying control.
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Free Goods – Condition Data
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Maintaining Free Goods: You can do free goods using condition technique or using condition record. If you have done free goods via condition technique, to create condition record T.Code: VBN1/2/3. Go to VK11 and click on free goods icon on the tool bar & enter sales orgn, Distbn & div. Now maintain the following data Material: material for which free goods is to be granted. Minimum Quantity: min qty for which free goods can be granted From: qty of sales material Free goods: qty of free goods material Calculation Type: pro rata, unit reference, whole units Delivery Controlling Additional Material: only available for entry in exclusive free goods. The system automatically calculates the percentage amount of the free goods with regards to the quantity. If the sales material & free goods use different units of measure, then this calculation is not possible. If you do not enter an exclusive free goods material, the system automatically uses the sales material. If you want to use scales, select ‘Scales’ You can also enter free goods manually by entering item category TANN as the item category in the double line entry. In this case, however the system will not access the master data & the control parameters contained there in. You can change free goods quantity. The system issues an error message if the free goods exceed the quantity of the material ordered. Other than the qty, no other data is available for entry in the free goods item. Subsequent changes to quantities or dates can be made to the main item. This means that free goods det is carried out again. This means that manual changes to the free goods qty are lost. You can define different rules for determining the free goods quantity: o Proportional rule o Related to no of units o Only for whole units
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Activate free goods determination, if you are using your own sales org.
Bonus Buy Bonus buys are deals, which grant special prices, discounts or free articles, if certain prerequisites and general conditions are fulfilled. In the Bonus Buy, Coupons can be assigned as prerequisite. Coupons in SAP R/3 Retail are treated like articles.
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The following steps are involved in configuring bonus buy:
Configuration: IMG > SD > Basic Functions > Bonus Buy
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Bonus Buy Procedure: IMG > SD > Basic Functions > Bonus Buy
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ADVANCEED PRICING
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Relevance of certain special condition types in Business scenarios:
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VA00 – It is the condition type to capture discounts for various variants of a product. Variant is the
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different types for the same product range for which the price fluctuates. For example, Maruti Zen LXI and Zen VXI are two variants of the same product line Maruti Zen for which the price differs and so also any discount offered to them.
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KP00 – This is a standard discount condition type to capture pallet discount. For example, A company sells their products in cases. Each of their materials has a conversion factor to pallets. When an order is placed by a customer, the user would like the system to calculate the number of full pallets for each line and to offer a 5 USD discount per full pallet ordered. The user sets up condition
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AMIZ – This is a condition type for capturing the minimum value surcharge. For example, a company would like
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to define minimum order values for their customers. As an example, a minimum order value of 200 USD is defined for Customer A. If Customer A places an order for anything less than 200 USD (before taxes), the system should automatically compute a surcharge equal to the difference and apply it to the order. To accomplish this, the user would configure pre-delivered condition types AMIW and AMIZ in their pricing procedure as defined above and maintain a condition record for AMIW and Customer A equal to 200 USD.
AZWR – This is a condition type to capture the down payment or settlement. Alternative calculation type formula '48' is delivered to ensure that the down payment amount the user offsets in a billing document does not exceed the actual down payment value. Condition value formula '48' is assigned to the condition type in the pricing procedure representing down payments (R/3 delivered condition type AZWR).
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SKTV – This is a standard cash discount condition type which is applicable before tax. This is applied as a group condition and is set as automatic condition.
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Understanding certain complex pricing requirements
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Free goods pricing (55) – This requirement is met if the item category for the item has the pricing
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indicator ‘B’ – Pricing for free goods. 100% discount is applied automatically by the system using the condition type R100 in the pricing procedure. Requirement ’55’ should be assigned to this condition type in the pricing procedure so that it is applied to only free items. Example A company has a free goods agreement with their customers. For every 10 cases of Product A that the customer buys, the customer receives 2 cases of Product B for free. From a pricing perspective, the user wants to track both revenue and sales deductions for the free items. To do this, the user flags the free goods item category with the pricing indicator ‘B’. In addition, the user adds the condition type R100 to the pricing procedure at the point at which 100% discount should be applied. The user also assigns requirement ’55’ to the condition in the pricing procedure so that it is applied for free goods items. Creating customized requirements, alternative calculation type and alternative condition base value routines – In addition to the sap provided requirements, alternative calculation type and base value routines, we can create our own routines if the pricing demands so.
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Creating & Using Pricing Reports
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In this activity, we define the screen layout for pricing reports. You use pricing reports to analyze condition records according to different criteria. Technically, pricing reports are ABAP/4 programs. T code – V/LA
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LetMe: Create a free goods pricing where 2 cases of Product A is offered free with 10 cases of Product B (Exclusive)
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Create a inter-company procedure, where a discount of 40% would be offered in inter-company billing document
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Help Me: Additional Info
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How to add new fields in the pricing field catalogue
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WORKING WITH CONDITION RECORDS a) Pricing Reports: List of existing Condition Records for analysis. Can be Customer-specific. Method for creating report: • Decide in which view report is to be analyzed by selecting specific fields from existing Condition Tables • System will generate list of tables which contain at least one of the selected fields • From this list are selected those tables which are to appear in the report. • List Layout is designed.
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b) Maintain Condition Records using Pricing Reports: Condition Records can be maintained using: • Mass Maintenance based on characteristics across all Condition Types & Tables. This can configured using Area Menus (copy & adapt COND_AV and assigning User) • Using each Condition Types
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c) Creating Condition Records with Reference Multiple Condition Records can be created with reference to existing Condition Records based on Create with Template. Changes can be made to Rate, Validity Period and additional Sales Data. d) Changing Condition Records Master Condition Records can be changed singly or en masse. Changes are recorded by system.
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Net Price List Price information for a Customer for specific materials by simulating Billing Document.
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e) Copying Condition Records Single Condition Record can be copied to create multiple Condition Records based on Copying Rules (can be modified – VOFM). Single Customer-specific Price Record can be copied based on two rules: • Copy this record onto many customers for same material • Copy this record onto many materials for same Customer.
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g) Condition Indexes i) To search for Condition Records that were created for a variety of Condition Types & Condition Tables e.g. all Condition Records, which apply to a certain Customer or Material. ii) System can use Condition Index only if it is activated (in Customizing). iii) System automatically updates Index as it is created. iv) Update requirement must be specified for each Index. v) For each Condition Type, it is specified whether system updates Condition Indexes as Condition Records are posted for the corresponding Condition Type. h) Release Status: If a condition table is not in release status, then it cannot be used in pricing. So if you create a new condition table, you should not forget to tick that field on. If the status is set at 'B', for example, then the corresponding records are taken into account during a pricing simulation, but are not used in current documents. The release status can only be maintained directly for agreements (sales deals). For condition records, this is done via the processing status. i) One can allow Release Procedure to be used when Condition Table (With Release Status checkbox), which adds two fields to Table automatically • KFRST – Release Status as last key field • KBSTAT – Processing Status as non-key field (variable data part) ii) Set indirectly by defining a Processing status and assigning Release Status to it (in Customizing). iii) Appears in Condition Record entry, where updating Processing Status field automatically populates Release Status field. iv) Four Release Statuses are: • _ : Released • A: Blocked • B: Released for Price Simulation (Net Price List)
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C: Released for Planning in COPA & Price Simulation
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Changeable Calculation Types Calculation Type for a Condition Record is determined from the Condition Type. But it can be changed when Condition Record is being created.
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Long Texts Long Texts can be maintained for Condition Records to maintain information about Validity, Approvals etc. Long Text from Rebates only is copied to the Documents. Texts are not copied when Condition Records are created with reference.
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5) SPECIAL FUNCTIONS a) Group Conditions i) Condition Type can be made group Condition. Condition Base Value is calculated as the sum of individual items in the group so that Condition Scales are applicable to group (e.g. Material Pricing Group) as a whole even if that scale is not applicable to the individual items. Only those materials belonging to the Grouping defined in the Condition Type are grouped. ii) Value of Header Condition Type is automatically split to individual items of the group based on the net Value. This split can be based on other basis by specifying another routine in the AltCBV field in the Pricing Procedure. If the Header Condition is not grouped, then the Header value is copied to each item. iii) Group Conditions with varying Keys: item qty’s are accumulated for scale point determination purposes but rate for each item is taken from its individual Condition Record. Group Keys are: • Complete Document: All qty’s with same Condition Type are accumulated. • For all Condition Types: All qty’s are accumulated which belong to Condition Type routine 2 • Material Pricing Group: All qty’s with same Material Pricing Group and Condition Type are accumulated.
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b) Best Price Using Condition Exclusion Used to determine the best possible Price (from Customer’s point of view) from two sets of Condition Types in a procedure. i) Assign a set of Condition Types to each Exclusion Group ii) Assign the two Exclusion Groups to the Pricing Procedure with Comparison Type: • A: All Conditions Records within first Exclusion Group are compared to each other and Condition with best possible price is chosen. All others are deactivated. • B: All Conditions found for one Condition Type are compared and best is chosen. • C: Total of the Condition Records of first group is compared with that of the second group and group with the best possible price is chosen. Conditions of the other group are deactivated. • D: If a Condition Record is determined for the Condition Types of first Exclusion Group, Condition Records of the second Exclusion Group are deactivated. • E: As for B, but worst Condition Record is selected. • F: As for C, but worst Group is selected. c) Tracking Cumulative Values in Condition Records Values can be accumulated in Condition Records and tested against limits: i) Max Condition value ii) Condition Base Value iii) Number of Orders. For this, the field Condition Update in Condition Type has to be checked. d) Condition Supplements Condition Supplement Procedure contains group of Condition Types, which are to be accessed together during Pricing. If the Exclusion Indicator is set for the main Condition Type, the supplementary Condition Types will be deactivated. e) Exclusion Exclusion Indicators can be set either in the Condition Type or the Condition Record. All prices / discounts below the Exclusion Indicator are ignored (based on the requirements set in the following Condition Types). It is also possible to create new Exclusion Indicators. f) Manual Changes / Entries Conditions can be entered manually in the Sales Document. Also, automatically determined condition records can be changed manually if allowed in Customizing. It is also possible to prevent manual changes in Customizing.
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In the Sales document, it is possible to check for manual changes by using the Analysis function. Manual only Condition Types don’t have Access Sequences. g) Header Conditions Don’t have Access Sequences.
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Hierarchy Accesses • Using Hierarchy Accesses reduces no. of Condition Records (else a Condition Table would have to be created for each combination and all the Accesses would have to be assigned to an Access Sequence). • In Hierarchy Access, single Access to Condition Table is used. • Consists of Fixed Key Fields (Values Necessary, and at Header level of Condition Record) and of Optional Fields (Hierarchy Levels and Material itself). Priorities are assigned to optional fields. • Possible for both Customer & Product Hierarchies. • Condition Record is applicable for all records belonging to the hierarchies below that hierarchy only. So search is initiated at lowest level of the hierarchy and stops when a Condition value is obtained. Data Determination & Data Use For Pricing, it is possible to determine and use data that is not contained in the document.
Header / Item
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h) Pricing Type Pricing Type controls the New Pricing function in Sales Document & automatically during creation of Billing Document. Can be done manually and be assigned to copy control. Pricing Type Description A Copy Pricing elements and update according to scale B Carry out new Pricing C Copy manual Pricing Elements, and new Pricing for others D Copy Pricing elements unchanged G Copy Pricing elements and re-determine Taxes H Copy Pricing elements and re-determine Freight
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Price
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Price
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Price
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Discount
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Rounding
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Cost
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Remarks Order Value entered manually. Difference between old and new order value is distributed between items (based on net item value). Original Pricing Conditions and Net Item values are deactivated. Taxes are redetermined. Net price for Item. All other Pricing / Discount Conditions are deactivated. Min Order value. Statistical Condition. If value of the order header falls short of AMIW, then AMIW value is copied automatically as Net Order value. Original Net Value is deactivated. Calculation using Formula = 13 (AMIW - Net Item value). Is calculated as surcharge on AMIW. Only statistical. Min Price for a material. It shows the difference between the Net value of the Item and the PMIN defined for the Item in the Condition Records. This PMIN value of the document is added to the Net Value so that the new Net Value is increased to match the PMIN of the Condition Record. Price for Items using Graduated Interval scales. Grouping not possible. Determines difference of Order Header Value from the Rounding Unit and adds to Order value so that it is rounded. Statistical. Is the Cost of the Material from Material
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Price
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Master depending on Condition Category (normally G – as per Price Control / S – Std / T – Mvg) Profit Margin = Formula 12 (Net Value 2 – Cost) Statistical. Cash Discount. Condition Category is E and is calculated from the first % rate of the Item ToP. Customer expected price, and can be manually entered or retrieved from incoming IDoc / EDI. Maximum Deviation is maintained (Calc formula 9). If Price varies from EDI1 by more that Max deviation, the order is Incomplete. Overall Item Value. Same as EDI1. (Calc formula 8)
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8) PROMOTIONS & SALES DEALS a) Promotions are General Marketing Plan for a product valid for a certain period of time. b) Various Sales Deals are assigned to Promotions. c) Each Sales Deal is linked to special Condition Records, which can be used for promotional Pricing or Discounts. d) Validity period of the Sales Deals of a Promotion should lie within the Validity Period of a Promotion and similarly for Condition Records vs Sales Deals. e) Every Promotion has a number, and this is assigned to a Sales Deal when it is created. In turn, each Sales Deal has its own Sales Deal number. In the Condition Records, the discounts / special prices are assigned to the Sales Deal number. f) Each Sales Deal has a Release Status. g) The Sales Deal & Promotion numbers appear in the Billing Item.
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You can create and use condition indexes to search for condition records that were created for a variety of condition types and condition tables. For example, you want to see all condition records that apply to a particular customer or product. The activation function displays a list of all available condition indexes and indicates which are active. The system can use a condition index only when it is activated. Before you can use the indexes that are delivered in the standard version, you must first activate them in Customizing for sales. However, if you create your own indexes, the system automatically activates each new index when you generate it. In addition, you must specify an update requirement for each condition index. You can specify for each condition type you use whether the system updates the condition indexes when you post condition records for the corresponding condition type.
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Release Procedure for conditions
You can allow a release procedure to be used when a condition table is created, by selecting the With release status checkbox. This adds the two following fields to the condition table automatically: KFRST Release status as last key field KBSTAT Processing status as a field of the variable data part (non-key field) The release status is predefined. At present the following statuses are defined: released blocked released for price simulation (net price list) released for planning and price simulation (planning in CO-PA) The release status is set indirectly by defining a processing status in Customizing for pricing and assigning a release status to it. Business Transaction Event 00503303 Maintain Conditions: Transfers is available for defining individual processing logic for the processing status. You can also convert old condition records without release indicators to new condition records with release indicators. A model is provided for this purpose.
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The calculation type for a condition type is defined in Customizing. This calculation type determines how prices or discounts and surcharges are calculated for a condition. Before Release 4.6, this indicator was copied directly to the condition record. When creating new condition records, you can now select a calculation type that differs from the one set in Customizing.
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You can assign a rule (blank, A, B) at the sales organization level to determine the sales tax identification number in the order and billing document (the tax classification determination is linked to this) For the status BLANK, the standard priority rules are as follows: 1. If PY has a sales tax ID and a different SP The tax number and tax classification are taken from PY (the SH is then no longer relevant). The tax number is determined according to the 'tax destination country'. 2. If 1. does not apply: If the SH has a sales tax ID or the SP has NO sales tax ID, the tax number and tax classification are taken from the SH. 3. If 2. does not apply: Tax number and tax classification are transferred from the sold-to party. With status 'A', the tax number and tax classification are generally transferred from the sold-to party. The tax number is transferred according to the 'tax destination country'. With status 'B': Data is transferred from the payer in the same way as rule A.
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27. REBATE AGREEMENTS What do you mean by Rebate: - Rebate is a special kind of discount, which is paid retroactively to a customer once he achieves or reaches the sales volumes, in a given period of time? Rebate agreement: - A Rebate agreement is an agreement between the business and a customer. The rebate is only relevant if the customer purchases the required sales volume. In rebate agreement, you specify who receives the rebate payment and on what criteria rebate is based. Ex. Customer, customer and material etc,. Rebate agreement type: - The rebate agreement type determines which data the system is to automatically propose for rebate agreement.
Validity period Status (whether the agreement is released for settlement) Rebate recipient (the party who receives the credit memo) Currency Method of payment (cheque, bank transfer etc)
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Structure:
Prerequisites for Rebate Processing: • • •
Sales orgn: must be relevant for rebate processing Payer: must be relevant for rebate processing Billing type: (invoice, credit memo etc) must be relevant for rebate processing
For performance reasons, you should deactivate rebate processing if it is not necessary. Material for Settlement: – In case of customer rebate where there is no material linked, a dummy material is given as material for settlement. You may have to create rebates that do not depend on a material, but instead, e.g. on: • • •
A Customer A Customer Hierarchy A Group of Materials
You will then need to refer to a material for settlement. The system uses this material when you pay out the rebate. It does not matter which material type & mat application type you use.
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When you create the cond record with in the rebate agreement, the system automatically asks you to enter the no of material for settlement. Manual accruals: – Instead of posting accruals from the billing documents, manually we can post accruals through the debit memo. If you activate this field if you want to be able to post manually for this agreement type. Reverse accruals:- Whatever manual accruals we have given can be reversed through the reverse accruals. Mark this field if you want accruals to be reversed when a manual payment is made for a rebate agreement of this type. The system uses reverses accruals for the amount of the manual payment. If the cumulative accruals are not sufficient, the system reverses the accruals amount, which exists.
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Relationship to Pricing Rebates differ from other kinds of discounts in that they are based on sales volume over time and are paid retroactively.
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However, the system processes rebates in much the same way as other kinds of pricing elements.
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Rebate data is saved in condition records.
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Controlling for rebate processing is carried out via condition types, pricing procedures and access sequences.
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This control data is defined in Customizing for Sales and Distribution.
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Rebate based on Group of Materials:
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A rebate group consists of materials to which you want to apply the same rebate. You system administrator can define rebate group in Customizing for Sales according to the need o f the orgn. You can assign a material to a rebate group in the MMR: view- Sales, field- Rebate Grp. When you create a cond record, you must enter a settlement material.
Rebate Agreement Types: Agreement Type Basis for Rebate 0001 Customer / Material Customer / Rebate Group 0002 Customer / Material 0003 Customer 0004 Customer hierarchy Customer hierarchy / Material 0005 Sales Volume Independent
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% Rebate % Rebate Quantity Dependent Percent rebate Percent rebate Percent rebate
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Cond Type BO01 BO01 BO02 BO03 BO04 BO05 BO06
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SPRO- IMG- SD- BILLING- REBATE PROCESSING: • •
Define rebate agreements Condition type groups o Define cond type groups o Assign cond types to cond type groups Maintain access sequence Define condition types Assign condition types to condition type groups Maintain pricing procedure o
Activate rebate processing o Select billing documents for rebate processing3 o Activate rebate processing for sales organizations o Activate at customer level.
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Assign condition type groups to rebate agreement types
1. Define Agreement Types:
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Doc Type (R4) & Billing Doc Type: B4 Doc Type (R3) & Billing Doc Type: B3 Doc Type (R1) & Billing Doc Type: B1
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Copy & rename: 0002 & go to Details
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2. Define Condition Type Groups:
Copy & rename: 0002. Give the same code as given to agreement type. 3. Assign Condition Type to Condition Type Group: In this activity one needs to assign the cond type from the pricing procedure to the cond type group found on the rebate agreement type. The sequence no column represents the fields in the cond table that determines what the system is to use as the basis for rebate. In this e.g., 1 determines that the cond type should use the fields’ customer & material. The cond type group 0002 will use pricing cond type BO02. Before assigning cond type to cond type group, you have to create a cond type. Cond Technique for rebate processing: • • • • •
Create cond table Maintain access sequence Define cond type: BO02 is the cond type used in pricing, copy & rename. Assign cond type to cond type group: BO02 to 0002 Maintain pricing procedure: assign cond type BO02 to pricing proc, after total discount & before freight. Assign Subtotal: 7, Account Key: ERB, Accruals: ERU (keeping reserve money from customer money), & Requirement: 24 (rebate will get affected in billing doc & not in sales doc)
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The cond type BO02 must use cond class ‘C’- expense reimbursement.
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The rebate procedure in BO02: indicates if the cond is dependent or independent of sales volume The accruals correction proc indicates if accruals must be corrected when this cond type is accessed.
4. Assigning Cond Type Groups to Agreement Type: Here you are presented with a list of agreement types as created in the system & you can assign the relevant cond type group 5. Activate Rebate Processing: at the following levels.
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Sales orgn level: activate rebate processing for sales organizations Billing Document: select billing doc for rebate processing Customer: active rebate in CMD Sales Area Data, Billing Tab Page. Billing Document Types F2 Standard Invoice BV Cash Sale G2 Credit Memo S1 Invoice Cancellation IV Inter Company Sales
Order Related invoice Rebate invoices Debit Memo Cancel Credit Memo
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Create Rebate Agreements: VBO1
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NOTE: - You cannot activate Rebates for Billing document type – F5 & F8, since they are proforma invoices.
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Easy Access- Logistics- SD- Master Data- Agreements- Rebate Agreements- Create
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Agreement type: 0002 & press enter. In the over view screen fill the following details: Rebate recipient: payer no Currency Validity Period Agreement Status: open Then Go To Conditions Icon & Fill Material, Rebate Amount, Accruals & save Then create sales order, delivery, picking, goods issue & invoice After this in order to see rebate in sales order cycle Go to: VF01 Go to Conditions (item). You can check rebate in VF01 before saving or else you can also see in VF02.
Rebate Settlement: VBO2 •
The system uses the accumulated amounts in the rebate agreement to create a rebate settlement.
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The system generates a rebate credit memo request for the rebate payment amount specified.
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There are 3 statuses available for rebate agreements 1. Status A refers to an open rebate agreement. 2. Status B means the rebate is released for settlement.
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3. Status C means you have actually executed the settlement. The System creates a credit memo request for the accrual amount. •
You can display the sales volume and drill-down in the rebate agreement.
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You can carry out a final settlement for the rebate agreement either: a. Manually b. Automatically c. In the background (batch programs: RV15C001 and RV15C002)
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Accruals are reversed as soon as the rebate agreement is settled by credit memo.
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Process of Rebate settlement: Use VBO2 and type in the agreement Number. Change the Agreement Status to B and click on Final Settlements->Automatic. On doing so, a Credit Memo Request gets created.
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Status is set to C. Save it.
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A credit Memo Request Number is generated.
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Go to VA02 and type in the Credit Memo Request number generated. Remove the Billing Block and Save it.
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Use VA02 to go to Sales Document and Click on Billing. On Saving it, the Credit Memo Request is now Billed
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Go to VBO3 and see the Agreement Status. It would have been set to D, which means that final settlement of agreement has been carried out.
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Important:-
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1. When you save the rebate agreement, the system will automatically create a credit memo request. The system uses this document to create a credit memo. When the credit memo is released, the accruals are posted to FI. 2. If you have posted accruals manually, but these have not been passed on to financial accounting, the manual accruals and manual payments in the rebate agreement are blocked. 3. The system can use the sold to party or ship to party as we as payer as the rebate recipient. You cannot use alternative partner as the rebate recipient, such as alternative payer for the CMD of the sole to party.
Retroactive Rebate Processing You can create rebate agreement for which the validity period start date lies in the past. The system takes into account all the rebate relevant billing documents that were created between the validity start date & the date you created the rebate agreement. In addition to the credit memo request, the system creates a correction sales doc (type B2) automatically for this amount.
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Create the rebate agreement in the usual way. The system recognizes that the rebate agreement is retroactive. Deleting Rebate Agreements: • • • •
In the change rebate agreement (VBO2) screen, enter the no of the rebate agreement that you want to settle. And press enter Select ‘Agreement Delete’, the system prompts you to confirm the deletion. Press enter to delete the rebate agreement. Result: the rebate agreement receives status ‘C’ (settlement created)
Automatically Renewing Rebate Agreements:
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Your system administrator is responsible for defining in Customizing for agreement type a calendar for extending rebate agreements. You can set for each rebate agreement whether it is to be renewed automatically or not. Select Extras Rebate Calendar Reactivate or Remove in the change rebate mode. Renewing Rebate Agreements:
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Enter the screen rebate agreements: renewing: Logistics- SD- Master Data- AgreementsRebate Agreement- Extend & Choose Enter The system issues a list of all rebate agreements which were renewed and which the system could not renew are listed in the log.
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Rebate Agreements are discounts paid retrospectively and are based on sales volume generated by a Customer within a specified time period. They do not appear on the Invoice. Are calculated as Condition Types in the normal Pricing Procedure assigned to the Billing Document. Are normally based on Sales Volume, and have scales. Each Rebate Agreement contains Condition Types and validity period. h) Rebate Processing: i) During processing of Rebate-relevant Billing documents, accruals are determined and posted in FI Accrual Account automatically. Accrual is done at the rate fixed at the beginning of the Rebate period. ii) Rebates are calculated based on the Rebate Basis sub-total (Net Value) of the Item during Billing. iii) As soon as the Billing Doc is released to Accounting, the Rebate Accrual amount is posted to FI. Accrual account is credited. iv) Also the Rebate Basis & Accrual Amount is updated in the Rebate Agreement. v) For settlement (final or partial), Credit Memo Request is made. vi) Settlement of Rebate at end of the time period is through a Credit Memo based on the Rebate Basis (Sales Volume) and the Rebate Rate. Final Settlement can be done automatically, manually or in background. vii) Rebate Credit Memo (Settlement) automatically reverses these accruals. Accrual Account is debited for the Accrual amount. Customer Account is credited for the Calculated Rebate Amount. viii) Rebate Status: • A: Open Rebate Agreement • B: Released for Payment • C: Rebate Credit Memo Request • D: Accounting done for Rebate Credit Memo i) Activating Rebates should be done in all of:
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i) Sales Organization ii) Payer Master iii) Billing Document type. Creating Rebates: i) Select Rebate Agreement Type ii) Rebate Condition Type / Records: Validity Rebate Base Value
Rebate Amount
Accrual Rates
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Accruals are canceled automatically when a credit memo is created, provided that the rebate agreement type is set accordingly in Customizing i)
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k) Retroactive Rebates i) To take into account Billing Documents created before the Rebate Agreement is created. ii) Rebate basis for the previously created Billing Documents is accumulated and recorded in the Rebate Agreement. But Accrual amount is not automatically updated and has to be done manually. iii) For Billing Documents created after the Rebate Agreement has been created, the Rebate Basis & Accrual figures are updated automatically. l) Partial Rebate Settlements • Retroactive rebate agreements allow you to take into account billing documents created before the rebate agreement is created. • The rebate basis for the billing documents created previously is accumulated and recorded in the rebate agreement • The accrual amount is not automatically updated for previously created billing documents. This amount must be entered manually • Rebate-relevant billing documents created after the rebate agreement is created update both the rebate basis and accrual fields automatically • Partial rebate settlements can be limited for each rebate agreement type as follows: 1. up to the accumulated accrual amount 2. up to the calculated payment amount for the current date 3. unlimited
Rebate Status must be changed to B (Released for Payment). Can be done for: • Up to accumulated accrual amount • Up to calculated payment amount for current date • Unlimited ii) Rebate Credit Memo (Settlement) automatically reverses these accruals. Accrual Account is debited for the Accrual amount. Customer Account is credited for the Calculated Rebate Amount. For this, Reverse Accruals field in Rebate Agreement type has to be checked.
g) Final Settlement Final Rebate Payment amount is calculated based on the Final Settlement Amount – Amount already paid. Rebate Settlement Credit Memo is raised for the Final Settlement amount and the Accrued amount is reversed. Settlement Material: • You may have a rebate that does not refer to a particular material, but rather to a group of materials or to a customer. In this case, you must refer to a settlement material in order to provide information at the material level • Maintain the rebate material in the material master in the Sales and Accounting views • When creating a credit memo, the settlement material is the source for important material master data, for example, account determination
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P _R P_ O 2C SA o_ Tw ps Ap 28. CREDIT MANAGEMENT Purpose Outstanding or uncollectible receivables can spoil the success of the company greatly. Credit Management enables you to minimize the credit risk yourself by specifying a specific credit limit for your customers. Thus you can take the financial pulse of a customer or group of customers, identify early warning signs, and enhance your credit-related decision-making. This is particularly useful if your customers are in financially unstable industries or companies, or if you conduct business with countries that are politically unstable or that employ a restrictive exchange rate policy.
Decentralized Credit Management
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If your credit policy requires decentralized credit management, you can define credit data for your customer for each company code. The customer has a business relationship with two company codes. You define a currency for each credit control area.
Central Credit Management If your credit management is centralized, you can combine your company codes in one credit control area. Credit management then regards the customer as valid for all company codes. The customer has a business relationship to two company codes that are combined in one credit control area: A credit limit may be a customer’s credit limit, which is the permitted limit of value of open items, such as invoices not yet paid, plus the value of open sales orders.
Credit Exposure:
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Is the customer's credit exposure may not exceed the established credit limit. The credit exposure is the total combined value of the following documents: Open order value : The value of all sales order items which have not yet delivered
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Open delivery value: The value of all delivery items which are not yet billed or invoiced.
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Open Invoice or billing value: The value of all billing document items which are not yet transferred to Accounting Open Items: The open items represent documents that have been forwarded to accounting but not yet
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Credit Checks: Simple credit Check: The value of all open items and the net value of the sales order for every item of a sales document Automatic credit check: The automatic credit check can target certain aspects during a check and run at different times during order processing. This can be, Static Credit Check: Total value of open sales orders + open deliveries + open billing documents + open items
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Dynamic Credit Check: Total value of open deliveries + open billing documents + open items + open sales orders for a specified horizon
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Credit Management - Configuration
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Update group: Basically it is an info structure where system stores all the data about credit limit. The
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credit relevant data is updated in an info structure, where it is accessed & updated. Thus each automatic credit control must be assigned an update group. The three different update groups and functions are Update group 000012 – Sales order: Increases the open order value from delivery relevant schedule lines – Delivery: Reduces the open order value from delivery relevant schedule lines and increases the open delivery value. – Billing: Reduces the open delivery value and increases the open billing document value. Update group 0000015 – Delivery: Increases the open delivery value and increases the open billing document value. Update group 000018 – Sales order: Increases the open delivery value. – Billing Document: Reduces the open delivery value and increases the open billing document value.
Credit Master Data T Code: FD32
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P _R P_ O 2C SA o_ Tw ps Ap Simple Credit Check: SPRO- IMG- SD- Basic Functions- Credit Mgmt/ Risk Mgmt- Simple Credit Check- Assign Credit Check to Doc Types.
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Based on sales doc types It will check all the above-mentioned docs & if the credit limit exceeds, the system responds in the way defined by you in the configuration menu. Cannot differentiate according to customer
3 ways to Control the Simple Credit Check: • • •
A: warning: The document can be saved. B: Error message: the document cannot be saved C: warning message with delivery block: the doc can be saved but is automatically blocked for delivery.
Automatic Credit Check:
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This credit mgmt control is maintained by using the automatic credit control functionality. The automatic credit control divides the sales doc types, the delivery doc types, & goods issue into specific credit groups. It also uses the customer’s risk category as assigned to the CMD of the payer & assigns an outcome proc to the combination of the above 2 objects, i.e. the credit group & customer risk category along with the credit control area. The definition of customer’s risk category is carried out in the fin accounting module.
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A customer’s risk category is a grouping category that controls the credit check when automatic credit control takes place. Thus one can assign high-risk customers to risk category for e.g. A01, medium risk to B01 and low risk to C01.
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High-risk customers, Low risk customers & Medium risk customers.
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Automatic credit check divides customers into 3 categories:
A credit check can only occur at 3 places: Credit Group • • •
Sales order: for high risk customers Delivery: for medium risk customers Goods Issue: for low risk customers
Credit Control Area (CCA): highest organizational element in credit management. A credit control area is an organizational unit that is comprised of one or more company codes. A company code can have no more than one credit control area. Defined by FI. Menu Path to create Credit Control Area: OB45: FI people. SPRO- IMG- Enterprise Stru- Definition- Fin Accounting- Define Credit Control Area Credit Control Area Description 0001 Credit control area 0001 1000 Credit control area Europe Menu Path to Assign Company Code to Credit Control Area: OB38: FI people. SPRO- IMG- Ent Stru- Assignment- Fin Accounting- Assign Comp Code to CCA
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It is possible to assign Credit Control Area to a Sales Area. This is more specific assignment than the assignment to Company Code.
Company code Company name City Credit Control Area Over write CCA Menu Path for Defining Risk Categories: OB01: FI people SPRO- IMG- Fin Accounting- Account Receivables & Payables- Credit Mgmt- Credit Control AccountDefine Risk Categories. CCA 4500 4500 4500
Name Low risk Medium risk High risk
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Risk Category 001 002 003
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Menu Path for defining Credit Groups: OVA6
SPRO- IMG- SD- Basic Function- Credit Mgmt/ Risk Mgmt- Credit Mgmt:
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Define Credit Groups: OVA6 Assign Credit Groups to Sales Doc’s & Delivery Doc’s o Credit Limit check for Order Types: OVAK o Credit Limit check for Delivery Types: OVAD Define Automatic Credit Control: OVA8
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Define Credit Croups: OVA6
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One merely creates a credit group for each differentiation in the doc type. You enter the credit groups when you configure the sales doc types for credit management & define the automatic credit check. The following credit groups are contained in the standard R/3 system: 01: credit group for sales order 02: credit group for delivery 03: credit group for goods issue CG (Credit Group) 01 02 03
Doc Credit Group Credit group for sales order Credit group for delivery Credit group for goods issue
Assign Sales Documents & Delivery Documents: Sales Doc Type Descp Check Credit Credit Group OR Std Order D 01
Delivery Type Descp Del Credit Group GI Credit Group LF Delivery 02 03
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whether a credit check should be carried out. Enter ‘D’ if an automatic credit check should be carried out. Specify a Credit Group Specify a Credit Group for the Delivery Type for which you want to carry out a credit check Specify a Goods Issue Credit Group for the Delivery Type for which a credit check is to be carried out for goods issue. SIMPLE CREDIT CHECK CANNOT BE ASSIGNED TO DOCUMENTS.
Define Automatic Credit Control:
Credit Control Low risk sales orders Low risk deliveries Low risk goods issue Medium risk sales orders Medium risk deliveries Medium risk goods issue High risk sales orders High risk deliveries High risk goods issue
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Credit Group 01 02 03 01 02 03 01 02 03
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Risk Cat 001 001 001 002 002 002 003 003 003
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CCA 4500 4500 4500 4500 4500 4500 4500 4500 4500
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One can now assign settings to the combination of the Credit Control Area, the Customer Risk Category & the Credit Group.
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A credit check when the maximum document value is exceeded. A credit check when changing critical fields.
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Select line item and go to details, you can decide whether to do Static or Dynamic Credit Check. Credit Horizon can also assigned here. Additional function checks can be performed here:
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The risk category assignment occurs in the same place as the customer’s credit limit, which is the customers’ credit management screen. That is, the risk category is assigned to the customer by the Finance in transaction code FD32.
SUMMARY OF CREIDT MANAGEMENT CONFIG STEPS 1. Transaction OB38 Check which credit control area is assigned to the company code. Company code: Credit control area: 2. Transaction OVFL Check which credit control area is assigned to the sales area. Sales area: Credit control area: 3. Transaction XD02 or VD02 Check which credit control area is assigned to the payer. Payer: Credit control area: 4. Transaction SE37 Is user exit EXIT_SAPFV45K_001 being used?
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5. Transaction OBZK For the settings under items 2 - 4, field "All company codes" must be marked in Transaction OB45, or the credit control area must be entered under the relevant company code in table T001CM of the credit control areas allowed. Company code: Credit control areas allowed:
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8. Transaction OVAD Which settings do exist for the delivery type used? Delivery type: Credit group for delivery: Credit group for goods issue:
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7. Transaction OVAK Which settings do exist for the sales document type used? Sales document: Check credit: Credit group:
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6. Settings for the credit checks
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9. Transaction OB01 Credit management/Change risk category Definition of the risk category for each credit control area. You can use Transaction FD32 to assign this risk category to a credit account.
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10. Transaction OVA8 Here, the individual credit checks for key fields credit control area risk category credit group are set. Take these key fields from the above settings and go to the detail screen. In particular, check whether fields "Reaction" and "Status/block" are set correctly. To carry out follow-up actions in case of a credit block, the credit check status must be set (field "Status/block"). 11. Transaction FD32 Credit master data for the payer of the relevant document. Credit account: Credit limit: Risk category: Currency: 12. Settings for updating the credit values Update of the credit values is required for the limit check (static or dynamic credit limit check). 13. You want the item to be relevant for billing. If an item is not relevant for billing or for pro forma billing, no update occurs. 14. Transaction OVA7 Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to field "Active receivable" in Transaction VOV7.
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Item type: Active receivable: 15. Transaction V/08, Pricing In the pricing procedure used for pricing, subtotal "A" must be entered in a line for determining the credit value (mark the pricing procedure and doubleclick on "Control"). Usually, the net value plus taxes is used. This way the system is determined to use this subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for update and credit check. You can find the used pricing procedure of the order under "Item -> Condition -> Analysis". Pricing procedure: Line with subtotal = 'A':
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16. Transaction OB45 Which update group (field "Update") do you use in the relevant credit control area? The default setting is "12". If you use another update group, check whether this is fine with you. Credit control area: Update:
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17. Transaction OMO1 Which kind of update did you choose for structure S066? In any case, "Synchronous update (1)" has to be chosen as the kind of update. All other settings will lead to errors.
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SM30 - Table/View
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SAP SD Credit Management All business have their own credit management needs, SAP allows you to specify your own automatic credit checks based on a variety of criteria. You can also specify at which critical points in the sales and distribution cycle the system carries out these checks.
V_TVTW - Define Distribution Channel V_TVTA_KKB - Assign sales area to credit control area V_T014 - FI - Define Credit Control Area T001CM - FI - Assign Permitted Credit Control Area to company code OVXG - Set up Sales Areas e.g. Sales Organization Distribution Channel Division Distribution Channel Division FD32 - Customer Credit Management OVAK - Define credit limit check by sales document type Check Credit A - Credit limit check and warning message B - Credit limit check and error message (no sales order can be created) C - Credit limit check and delivery block (block delivery if hit credit limit) Options B and C -> used for checking open order values (when you create/change the sales order) D - Automatic credit control with open order values
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More control in transaction OVA8 - Automatic credit control You check for open orders and deliveries, or just open deliveries. or open order values with other options Credit group Allows you to combine different sales document types for the credit limit check VKM1 - Blocked SD Documents - Finance have to released the delivery block OVAD - Define credit limit check by delivery order
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whether the automatic credit check occurs at the time of delivery creation and/or goods issue OVA7 - Define credit limit check by item category Set whether to include/exclude item category for credit limit check OVA6 - Define credit group. You can groups together different business transactions which should be dealt with in the same manner with regard to the credit check. You enter the credit groups when you configure the sales document types for credit management and define the (D - automatic credit check). SAP default credit groups 01 - credit group for sales order 02 - credit group for delivery 03 - credit group for goods issue OVA8 - Automatic credit control - Double click on the line items
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You can have the followings credit limit check: -
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Static Depends on the customer total value of open orders, deliveries, billing documents and open items.
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Open items No of days open Overdue open items checks is based on the ratio of open items that are overdue by a certain number of days. Max open items % The customer balance must not exceed a certain percentage. Oldest open items If you don't want to deliver to the customer at all when even only 1 invoice is overdue. Tick the Check for Oldest Open Item and Set the field Days oldest item = 1. Days oldest item No of days allowed for overdue or payment terms. Use of the credit checks Oldest Open Item. If a user attempts to alter the order quantity of a released sales document that was previously blocked, it would be reblocked again by the system. The system only reblocks the sales document if the new order quantity is above a certain % amount. Released documents are still unchecked The preset % is whatever you want to set it as when configuring your automatic credit processing. You enter a deviation % and number of days,eg, you can set it so that an order can be changed by up to 10% within 30 days of original order entry date without it going back on credit block. Next Review Date If a customer has a credit limit of 1000 USD, and you would like to restrict this credit limit only to be
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available in current month (say March). If the document day is in April then the credit limit is zero. You can use the "Next Review date" and "Number of days" fields and combined it with the "Last interview" field in customer credit master "Status" view (FD32). VOKR - Display of work list for credit management (configure the display variant)
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The customer credit master record is divided in to 5 views: (FD32) 1. Overview Screen: gives an overview of credit settings in relation to the customer, including his credit limit, credit exposure, and the % tage of credit limit used, his payment data & his risk category. 2. Address: view gives the customers address details as they appear in CMD 3. Central Data: is a view that shows the total credit limit the customer can receive across all credit control areas as well as the maximum limit he can receive in one credit control area. 4. Status: view shows the customer’s actual individual details according to particular CCA being investigated. This includes his credit limit, percentage used, credit exposure, risk category, whether he is blocked due to credit or not. 5. Payment history: view displays the payments made by the customer for a particular credit control area where a comp code is assigned.
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Additional checks - in Automatic credit control
Credit check on the basis of the maximum document value:- The sales order value or the value of goods to be delivered must not exceed a certain value defined for the credit check. The value is stored in the currency of the credit control area. In particular, this check is useful if the credit limit of new customers has not yet been specified. This check can be accessed explicitly by a risk class reserved for new customers.
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Credit check when changing critical fields:- The credit check is started when changes are made to credit-relevant document fields so that they differ from the default values proposed from the customer master record (terms of payment, value days and fixed value date).
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Credit check at the time of the next internal check:- The credit check is started automatically on a certain date. All sales orders entered up to this time are regarded as not critical.
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Credit check on the basis of overdue open items:- The ratio between open items, which are overdue by more than a certain number of days, and the customer balance must not exceed a certain percentage.
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Credit check on the basis of the oldest open items:- The oldest open item may only be a certain number of days overdue.
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Credit check against maximum allowed dunning levels:- The dunning level of the customer may only assume a certain maximum value.
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Customer-specific credit checks: - If you require further checks to those defined in the standard system, you can define them in the corresponding user exits (LVKMPTZZ and LVKMPFZ1).
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Static Credit Check Open Order Open Delivery Open Billing Open Item Compares the total combined values of the above-mentioned documents to credit limit.
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Dynamic Credit Check Open Order Open Delivery Open Billing Open Item Plus credit horizon. Compares the values of the following documents to credit limit + credit horizon.
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Credit horizon has an attached time period that states that the system is not to include sales orders in the total of outstanding items created after that specified period i.e. for the purpose of evaluating credit; you want the system to ignore all open orders that are due for delivery after the horizon date. Maintained for low & medium risk customers.
Important fields in Automatic credit control settings: -
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ITEM CHECK: - If we check this field the system carries out the credit limit check when we enter the Items. Otherwise the check is carried out while we save the document. REACTION: - Specifies whether the system reacts with a warning or error message when the limit exceeds. STATUS / BLOCK: - If we check this field the document will be blocked for processing, if the limit is exceeds. STATIC: - In this check yo7u have two check boxes OPEN ORDERS and OPEN DELIVERIES. You can flag on as per the client’s requirement.
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Important Transactions Description
OB38
Assign Company code to Credit Control Area
OVFL
Assign credit control area to sales area
XD02
Change Customer (Centrally)
OBZK
Permited Credit Control Area for Company Codes
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Sales Order Type Assignment
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Transaction code
Delivery Type Assignment
Transaction Code
Description
OB01
Defline Risk Categories
OVA8
Maintain Credit Checks
FD32
Credit Master Data
OVA7
Credit Relevancy of Item Categories
VOV7
Maintain Item Categories
V/08
Maintain Pricing Procedure
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OB45
Define Credit Control Area
VKM4
Release all SD Documents
VKM5
Release delivery documents
Release Blocked Sales Order/ Deliveries:
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VKM1: Blocked SD Documents VKM2: Release SD Documents VKM3: sales Documents VKM5: delivery Documents. VKM4: Sales and Delivery documents.
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One can see the offending document. Note on the right hand side, the ‘Status Field’. This shows the check, the doc failed. If this field is empty, the doc did not fail a credit check, even though it may be in the list of SD documents that are “required to be released”.
NOTE:- Net value with sub total ‘A’, in pricing proc, will be the basis for credit limit.
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To release the doc, one indicates the doc to be released and then clicks on the ‘Release Button’. The result is the offending doc entry, highlighted green. One then proceeds to save, after which you are informed the doc number has been released.
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29. INTERCOMPANY SALES & BUSINESS PROCESSING
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When the goods in the purchase order have reached the customer, you first enter a sales order in sales organization 2200. This belongs to the so-called ordering company code (company 2200). The plant from which the goods to be delivered are taken is referred to as the delivering company code (company 1000). As soon as the order is due for delivery, you create the delivery. The goods issue is posted at the end of the shipping activity, and the goods are delivered to the customer. Afterwards, the invoice for the end customer is created in sales organization 2200, that is, in the ordering company code. In order for intercompany billing to take place between the two companies involved, the delivering company issues an internal invoice, through its sales organization 1000, to the ordering company. Depending on the agreement between the two connected companies, the entry of receipt of invoice may take place automatically. If not, the received invoice is entered manually in the financial accounting system of the ordering company. An Inter company sale transaction takes place when a sale occurs & the selling sales orgn belongs to a different company code than that of the delivery plant. Intercompany business processing describes business transactions, which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant, which is assigned to another company code.
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Ordering company Company code: 5555 Sale Organisation: 5555 Distribution channel: 56 Division: 58 Plant: 5555 Customer: 215
Supplying company 1000 PBIL PW GC 1000 Product: Nimulid
Processing an Intercompany sale:
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To create an Intercompany sales transaction proceed with creating the standard sales order. In the sales order, change the delivering plant at the line item level & create a delivery for the new shipping point represented for the delivering plant. Proceed with the delivery functions of selecting the packing & posting the goods issue. Then create an external invoice that will be sent to the customer & create an Intercompany invoice. That will represent the billing doc between the delivering plant & the selling sales orgn.
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An internal Intercompany invoice can be created by entering the delivery no again for processing when using the transaction VF01. One can also select the doc due for Intercompany billing by using the billing due list VF04. When using the billing due list be sure to select the Intercompany-billing doc as the documents to be used, by checking Intercompany billing.
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A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group.
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To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B.
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It is imperative that both Plants A & B should have the material. In other words, the material is created for both the Plants A & B + their respective storage locations. Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code. Sales organizations and plants assigned to each other need not belong to the same company code. In other terms, a plant belonging to Company code A & assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company sales. PARTIES INVOLVED 1) End Customer 2) Ordering Company code 3) Supplying Company Code. End customer: Customer who orders goods from the ordering company code. Ordering Company Code: Which orders goods from Plant belonging to Supplying Company code through its sales organization and bills the end customer. Supplying Company Code: Supplies goods from its plant to the end customer specified by the ordering company code and bill the ordering company code.
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The ordering sales organization and delivering plant must belong to different company codes. Required combination of Sales Organization and Delivering Plants has to be maintained.
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Sales Area-Sales Organization, Distribution Channel and Division, must be assigned to all the plants in which Inter company sales processing is being carried out. Inter company Billing Document type must be assigned for required sales document types. An internal customer number must be created, to represent the ordering Sales Organization, in the Sales organization representing the delivering plant. Material must exist in all the plants participating in Inter Company Sales process. Condition types representing the Inter company sales processing is to be maintained in the pricing procedure. Condition records have to be maintained for the required combination of sales organization and plants
CONFIGURATION SETTINGS Step 1: DEFINE ORDER TYPES FOR INTERCOMPNY BILLING:
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Inter company billing document type ‘IV’ is assigned to all those order document types for which inter company sales processing can be carried out
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Menu Path: IMG-> Sales & Distribution ->Billing->Inter Company Billing-> Define Order Types For Inter Company Billing.
Step 2: Assign Organizational Units by Delivering Plant: Sales organization, Distribution Channel and Division are allocated to the plants for which inter company sales processing is possible. The delivering plant uses these specifications to process inter company billing. Menu path: IMG/ SD/Billing/Intercompany Billing/Define Order Types for Intercompany billing assign Organizational units by Plant:
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Step 3: Assign Plant to Sales Organization and Distribution Channel:
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Sales Organization and Distribution Channel have to be assigned to the Delivering Plant to enable sales processing.
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Menu Path: IMG-> Enterprise Structure->Assignment->Sales and Distribution-> Assign Plant to Sales Organization and Distribution Channel.
Step 4: Master Data – Customer Create Internal Customer Number By Sales Organization: A Customer Master record is to be created in the Sales Organization representing the Delivering Plant. The Internal Customer created represents that Sales Organization belonging to the ordering Company Code. Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Master Data -> Customer -> Create. Code: XD01
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Step 5: Configurations: Define Internal Customer Number By Sales Organization: The Internal Customer number has to be assigned to the Ordering Sales Organization.
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Menu Path: IMG-> Sales & Distribution ->Billing->Inter Company Billing-> Define Internal Customer Number By Sales Organization
Step 6: Master Data – Material: Extend the material in the Delivering Plant: Enter the Delivering Plant in the material records, which will be relevant for sales processes carried out by the Ordering Sales Organization. Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Master Data -> Products -> Material -> Other Material -> Change. Code: MM02
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Step 7: Configurations – Condition Type: Creating Inter Company Condition Types: The delivering plant uses one of the following condition types to bill the sales organization.
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PI01 Inter company: fixed amount per material unit
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PI02 Inter company: percentage of the net invoice amount.
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These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice.
T-code: V/06
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Menu Path: IMG Sales and Distribution Basic functions Pricing Pricing Control Define Condition type.
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Step 8: Master Data – Condition Records: Creating Inter Company Condition Records: PI01 Inter company: fixed amount per material unit PI02 Inter company: percentage of the net invoice amount. Menu Path: Easy Access Logistics
( Sales and Distribution ( Master Data ( Conditions ( Select using
Condition Type ( Create T-Code: VK11
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Transaction Steps
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Step 1: Order
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Create Order: The ordering Sales Organization prepares the sales order.
The system checks for the company codes and the permissible combinations of the ordering sales organization and delivering plant, to carry out the Inter Company Billing process.
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Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Sales -> Order -> Create.
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Code: VA01
The system automatically carries out pricing a per the pricing procedure assigned to the sales organization. The inter company charge (PI01/PI02) appears in the conditions screen of the sales order as a statistical value -the charge has no effect on the final value of the sales order for the customer. The inter company charge is not printed out on documents for the customer Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Sales -> Order -> Create. Code: VA01
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Step 2: Delivery
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The Delivery is created by the Ordering Company from the Shipping Point which is assigned to the Delivering Plant.
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Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Shipping and Transportation -> Outbound Delivery -> Create -> Single Document -> with ref to Sales Order.
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Code: VL01N
Subsequently, Picking & PGI are carried out
Step 3: Billing The Ordering Company creates the invoice for the end customer.
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The Payer and the Company Code are derived from the Order created by the Ordering Company Code. Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Billing -> Billing document -> Create.
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Code: VF01
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The Payer and the Company Code are derived from the Order created by the Ordering Company Code.
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Code: VF01
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Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Billing -> Billing document -> Create.
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FI posting in Intercompany sales process
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Company Code Delivering the Material: 1. PGI Stage COGS - Dr To Inventory - Cr 2. Intercompany Invoice Intercompany - Dr To Revenue - Cr
Company Code which received Sales Order & End Customer Billing: 3. 2nd Effect Entry in Billing Company Code's Books COS A/c - Dr To I/C - Cr 4. End Customer Invoice End Customer - Dr To Revenue - Cr To Tax - Cr
Posting of the Inter Company Invoice Manual posting of the invoice is done after good issue and system prints invoice document with the help of output type RD00, which is then sent to the end customer. Automatic posting of the inter company billing document is done via IDOC/EDI. The system uses the output type RD04 contained in the output determination procedure V40000, which is assigned to internal billing type.
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Let Me:
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IMG-> Sales & Distribution ->Billing->Inter Company BillingDefine Order Types For Inter company Billing Assign Organizational Units by Delivering Plant Assign Plant to Sales Organization and Distribution Channel XD01
Create Internal Customer Number By Sales Organization Define Internal Customer Number By Sales Organization
MM02
Extend the material in the Delivering Plant
V/06
Create Inter Company Condition Types-PI01
VK11
Create Inter Company Condition Records
VA01
Create Order
VL01N
Create Delivery
VF01
Create Standard Invoice
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Create Inter Company Invoice
Expected Result
Menu Path : IMG-> Sales & Distribution -
‘Change View “Sales Order for Inter-Company Billing”:
>Billing->Inter Company Billing-> Define
Overview ‘ screen appears
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Step Menu Path / T Code
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VF01
Order Types For Inter company Billing
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Assign Inter-Company document type “IV” The system accepts the input and Data is saved against the required order document type and Save
3.
Menu Path: IMG-> Sales & Distribution -
‘Change View “Organizational Units for Internal costings per
>Billing->Inter Company Billing-> Assign
Plant”: Overview ‘ screen appears
Organizational Units by Plant.
4.
Assign Sales Organization and Distribution The system accepts the inputs and Data is saved Channel to the Delivering Plant and Save
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5.
Enter Tcode: XD01
”Customer Create “ : Initial Screen” appears
6.
Enter the data relevant to represent the
System Displays the message “Customer XXXX saved”
ordering sales organization. Eg:Address, currency, Delivering Plant, Payment Terms, etc and Save
‘Change View “View for Inter-Company Billing”: Overview’
>Billing->Inter Company Billing-> Define
screen appears.
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Assign the Internal Customer created in the The data gets saved.
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step: 6 to the ordering Sales Organization
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Enter T code MM02
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Internal Customer Number By Sales Organization
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Menu Path: IMG-> Sales & Distribution -
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records and Save.
System displays message : Material XYZ saved”
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10. Enter the Delivering Plant in the material
“Change Material (Initial screen)” appears
11. Call Transaction VK11 and enter the
‘Create ZZCC Condition (Fast Entry )’ screen appears and the
required condition type and maintain data. system accepts and saves the data entered.
12. Call Transaction VA01
‘Create ZZZZ Sales Order : Initial screen’ appears
13. Enter Order Type, Sales Organization,
‘Create ZZZZ Order: Overview’ screen appears
Distribution Channel & Division
14. Enter Sold-to party, PO no, Material no. , Quantity and the Delivering Plant.
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The system accepts the inputs and displays the Net Value of the order on the top.
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15. Navigate to Goto◊Item◊Conditions
‘Create ZZZZ Order : Item Data’ screen appears Check condition types PI01/PI02. They do not affect the Net price of the item.
16. Go back after save the order.
System displays the message “ ZZZZ Order ZZXX has been saved”
“Create Delivery: Initial Screen “appears.
18. Enter the shipping point and Order no
“Create Outbound Delivery with Order Reference” screen appears
19. Complete Picking and PGI activities and
System displays message “ Delivery No ZZYY Saved”
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save the Delivery.
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created in the step 17
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17. Call TCode: VL01N
“Create Billing: Initial Screen” appears.
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21. Enter the Delivery document created in the Note the invoice value is based on the sale price derived from
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Step:19 and Save.
22. Again call Tcode: VF01
the order document. System displays the message “Invoice ZZFF is saved”
“Create Billing: Initial Screen” appears.
23. Enter the same Delivery document created “Intercompany Billing : Overview screen appears” in the Step:19 and select the billing type as “IV”
24. Check the Payer, Net Value of the Invoice Internal customer no assigned to the ordering sales organization in the Step: 8 is displayed as the Payer. Net Value of the Inter Company invoice is different from the value of the invoice created in Step: 10.
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25. Navigate to Goto◊Item◊Conditions
The net value of the item is based on values of Inter Company conditions - PI01/PI02.
26. Save the invoice
System displays the message “Invoice ZZII is saved”
Tips and Tricks For the system to determine another delivering plant for the material in the customer order item, when entering a sales document: •
Ensure that the same delivering/supplying plant is maintained in the Customer material info record, if any.
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The internal customer master for the delivering sales organization must also contain the same plant.
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The delivering company must be created as a vendor to enable posting to the financial document of the ordering company.
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Additional Information:
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PRICING: We need to maintain two pricing procedures RVAA01 & ICAA01. Pricing procedure RVAA01 represents condition type PR00 & any other discounts or surcharges that are meant for end customer. We assign Pricing procedure RVAA01 to combination of Sales area (Of Ordering company code) + Customer Pricing Procedure + Document Pricing Procedure of Sales document type. This pricing Procedure (RVAA01) is determined both at Sales Order level & Billing processing for the end customer. We maintain PR00 condition type to represent the ordering company code's price to the end customer. Condition records for PR00 are maintained using organizational elements of Ordering company code, end customer & the Material. Eg: Sales Org. of Ordering company code + End customer + Material. We also need to maintain PI01 condition type to represent costs to Ordering company code (in other words revenue to supplying company code). It is statistical condition type & meant for information purpose only. Condition records for PI01 are created with the following key combination: Ordering sales Org + Supplying Plant + Material Pricing Procedure ICAA01is determined at Intercompany billing processing level. Pricing Procedure ICAA01 - Pricing Procedure for Inter Company billing is assigned to the combination of: Sales Area (of supplying company code) + Document pricing Procedure of Billing document type IV + Customer Pricing Procedure of the Internal customer. Pricing Procedure ICAA01 has condition type IV01 that represents revenues for Supplying company code in the inter company billing.
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PR00 condition type also appears in Intercompany billing document. It is for information purposes only and does not have bearing on the value of the document. PI01 represented under pricing procedure RVAA01 is reference condition type for IV01 and the same is defined in the condition type IV01. Due to this these two condition types represent same value. The condition type IV01 in inter company billing document represents revenue to the Supplying Company. But its corresponding condition type PI01 in the billing document to the end customer is shown as a statistical item meant for information purposes.
Condition Type VPRS in the inter company-billing document indicates cost to the supplying company code.
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The use of two different condition types in Intercompany billing is necessary to ensure that data is transmitted correctly to the financial statement (Component CO-PA).
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OBSERVE THE CONDITIONS SCREEN OF THE INTERNAL INVOICE: IV01 Condition type represents revenue for the supplying company code. VPRS condition type represents cost to the supplying company code.
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PR00 in Inter Company billing document displays amount billed to the end customer. It serves as just an information item and is inactive.
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If the ordering company enters the incoming invoice manually, the delivering company can print out an invoice document with the help of output type RD00, which is then sent to the Payer.
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If automatic invoice receipt has been agreed, we must use the SD output control functions to ensure that output type RD04 is found in internal billing. In R/3 system, output determination procedure V40000, which includes this output type, is assigned to Intercompany billing type IV.
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The automatic posting to the vendor account is initiated when output type RD04 is processed. The system uses the EDI output type INVOIC in the FI variant. To ensure that payables are posted in financial accounts of the ordering company, the delivery company must be created as a vendor.
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30. AVAILABILITY CHECK
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Purpose:
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When a customer places an order for a material and requests that the material be delivered to him on a specific date. This delivery date can only be confirmed after ensuring the material availability after considering all the inward as well as out ward stock movements
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The availability check shall happen and take into account the respective activities that must be carried before a delivery can take place
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Use:
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If sufficient quantities are not available to cover the requirements, purchase orders, can be created in purchasing on the basis of transfer of requirements planning
The Availability Check and Requirement Transfer help to determine delivery date for a customer These also help in determining whether the goods are ready or to be produced or to be procured externally Availability Check – Overview: Types of Availability Check Scope of the Availability Check Availability Check in Sales Order Control of Availability Check
Types of Availability Check: There are three types of Availability check
Check on the basis of Available To Promise (ATP) Quantities The ATP quantity is calculated from the warehouse stock, the planned inward movements of stock (production orders, purchase orders, planned orders) and the planned outward movements of stock (Sales Orders, deliveries, reservations). This type of check performed dynamically in the transaction. Planned independent requirement are not taken into account here
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Check against product allocation Product allocation facilitates period-based distribution of products for certain customers or regions. This type of check is useful in a cases, for example, the production is very low, customer requirement is high Check against planning The check against planning is performed against independent requirements which are usually created for an ‘anonymous’ market rather than being customer specific.
Scope of the Availability Check: The following elements can be included in the availability check: Stock: Safety stock, Stock in transfer, Stock in quality inspection, blocked stock
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Inward movement of goods: Purchase orders, Purchase requisitions, Planned orders, and Production orders.
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Outward movement of goods: Reservations, Dependent reservations and requirements, sales and delivery requirements Availability Check – Sales Order
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When you create an order, the system determines the required material availability date on the basis of the customer’s requested delivery date. On this date you must begin picking, packing and loading the goods. Therefore this is the date of significance for requirements planning on which the availability check should be checked
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The following data is required for determining this date:
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Route from the shipping point to the ship to party
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Shipping point from which the goods are issued
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Loading group from the material master record Weight group determined from the order using the order quantity Control of Availability Check: The control features specific to Sales and Distribution are: Checking group: It controls whether the system is to create individual or collective requirements in sales and shipping processing. The checking group can also be used to deactivate the availability check. It is proposed in the material master record on the basis of the material type and the plant, and copied into the sales documents. Checking Rule: The use of checking rule to control the scope of the availability check for each transaction in sales and distribution. You also specify the check should including or excluding replenishment lead time. Schedule line category: Schedule line category controls whether an availability check and transfer of requirements should be carried out in the sales documents Delivery item category: The delivery item category can be used to control whether an availability check takes place in deliveries. Transfer of Requirement – Overview:
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Types of Transfer of Requirements Control of Transfer of Requirements Types of Transfer of Requirements Individual Requirements: A TOR occurs for each sales document that is created. The advantage is that the source document can be identified by looking in the availability overview for each requirement. Collective Requirements: Collective requirements combine several document quantities based on criteria such as Plant, Batch, Storage location, Date, Transaction and Requirements Class. Collective requirements can either be created daily or weekly. The source documents initiating the collective requirements cannot be identified directly but can be determined from the list of orders for the material.
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Control of TOR: The control features specific to Sales and Distribution need to be maintained in Customizing: Requirements Class: The requirements class contains all control features for planning. In addition, it is specified at a global level whether an availability check is to take place for the material in the sales and distribution documents on the basis of the ATP quantity (ATP = available to promise) and whether requirements are to be passed on
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Requirements type: The requirements are identified by the requirements type. The requirements type refers to the requirements class and its control features
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Schedule line category: Schedule line category controls whether an availability check and transfer of requirements should be carried out in the sales documents
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Checking group: It controls whether the system is to create individual or collective requirements in sales and shipping processing.
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Prerequisites for Availability Check: 1. The availability check must be switched on at the requirements class level Menu Path: IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Define Requirement Classes
2. In order to have availability check in the sales document, the indicator must be set at the schedule line category level.
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Menu Path: Display IMG Sales & Distribution Sales Sales Documents Schedule Lines Define Schedule Line Categories
3. A requirements type must exist by which the requirements class can be found
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Menu Path: Display IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Define Requirement Types
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Availability Check - Configuration 1. Define Checking Groups:
Use standard SAP checking group “01” for daily requirements and 02 for individual requirements. In order to create new group, copy an existing group, change the name (ensure that the name starts with “Z”) and description to your preference
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IMG Sales & Distribution Basic Functions Availability Check & TOR Availability Check Availability Check with ATP Logic or Against Planning Define Checking Groups
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2. Defining Material Block for other users Tick the “Block” checkbox to block a particular material from being checked for availability if it is being checked at the same time by another user. This ensures two users cannot confirm the same quantity for the same material at the same time. IMG Sales & Distribution Basic Functions Availability Check & TOR Availability Check Availability Check with ATP Logic or Against Planning Define Material Block For Other Users
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3. Control of Availability Check
We indicate what stock in hand, which inward and outward stock movements should be taken into consideration while carrying out availability check.
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The Control group specifies in combination with the checking rule the scope of availability check
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IMG Sales & Distribution Basic Functions Availability Check & TOR Availability Check Availability Check with ATP Logic or Against Planning Carry Out Control For Availability Check
4. Determining the Procedure for Each Delivery Item Category Here we have the option for switching off availability check. This option is used for return items. IMG Sales & Distribution Basic Functions Availability Check & TOR Availability Check Availability Check with ATP Logic or Against Planning Determine Procedure For Each Delivery Item Category
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5. Defining the Default Settings
Here we define default setting for each sales area.
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IMG Sales & Distribution Basic Functions Availability Check & TOR Availability Check Availability Check with ATP Logic or Against Planning Define Default Settings
Prerequisites for Availability Check: 1. A checking group must be defined in the “Availability Check” field in the “MRP 3” screen of the material master. SAP Menu Sales & Distribution Master Data Products Material Trading Goods MM01 – Create
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2. A plant must be determined in the sales order for the line item. It can either be proposed from the customer material info or customer master or material master or can be proposed manually in the document
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SAP Menu -> Logistics -> Sales & Distribution -> Sales ->Order -> VA01 -Create
Availability Check – Order Processing In the sales menu you select Environment -> Availability Ovw to display availability status for a material with reference to the plant and checking rule
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During order creation, availability check can be carried out by clicking on the button as shown in the screenshot. We can also display item availability as shown in the screen shot
Availability Check – Delivery Processing: In the delivery document, we can go to the availability overview screen by using the path: Environment – Availability. The availability overview screen is shown as the second screenshot in the previous slide.
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TOR – Configuration
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1. Defining the Requirements Classes
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IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Define Requirement Classes
2. Defining the Requirements Type •
The relationship between requirement type and requirements class is many to one.
IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Define Requirement Types
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3. Assign Requirements Type
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Assign requirement type to the relevant item category in the sales order and the MRP type found on the material Master Record
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IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Determination of requirement types using transaction
4. Defining Procedure for Each Schedule Line Category •
We deactivate a setting at the schedule line level only if it is already set at the requirements class level.
IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Define Procedure For Each Schedule Line Category
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5. Block quantity confirmation in delivery blocks
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IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Block quantity confirmation in delivery blocks
6. Maintain Requirements for Transfer of Requirements In the same way as the requirements used in access sequence, that is, a number of preconditions must exists of the transaction to be carried out, requirements can be used to determine that the TOR to MRP is not carried out unless a number of condition are met.
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IMG Sales & Distribution Basic Functions Availability Check & TOR TOR Maintain Requirements for Transfer of Requirements
• • • • •
Create a new checking group by copying “01” and/or “02”. Create a new material by copying C-4000. Assign the checking group to the new material. Create sales orders with the data provided in the exercise data slide. Alter the controls provided in the checking group and other controls as described in the earlier slides to see how availability check is affected.
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•
Read the information on RLT provided in the “Help Me” section and through configuration see its effect on material availability date.
Additional Info: •
• To check the availability over follow menu path Logistics ->Materials Management -> Environment -> Stock -> Availability Overview (CO09)An advantage of this availability overview will show sales order quantity, sales order number, an line item number, and requirement class for each schedule line for which demand is created.
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In case of maintaining requirements (preconditions ) for TOR - the Standard SAP requirement ‘102’ prevents reservations from being carried out in the event of credit block Replenishment lead time (RLT) is the time that is needed to order or produce the requested material. Depending on the material type, replenishment lead time can be calculated according to various time periods. RLT is only included in the check performed on the basis of the ATP quantity
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Availability is only checked up to the end of RLT. If the material availability date (ready for packing and transporting) is calculated on the basis of the current date to lie after the RLT for the item, the item itself can be confirmed despite insufficient stock being available.
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In this case, the system assumes that any quantity requested by the customer can be procured by the material availability date and considers the goods to be available.
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Availability Check with RLT:
The customer wants 20 units delivered in full by the requested delivery date. Using backward scheduling, the system determines a material availability date. But no goods are available as the inward movement of 100 pieces is used up by an outward stock movement. Therefore no stock is available for the material availability date determined by the system. But since RLT is taken into account, the material availability date is proposed at the end of RLT
Availability Check without RLT:
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If RLT is not to be taken into account in the availability check, the system conducts an unrestricted availability check. Please see the figure below for illustration. The customer wants 20 units delivered in full by the requested delivery date.
Backorder Processing: is the processing of a backorder, which in itself is a sales order that has not been confirmed in full or not confirmed at a certain delivery date.
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Rescheduling: is a proposal of how confirmed quantities already assigned to sales orders can be reassigned to other orders that have a higher priority, such as an earlier delivery date.
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ATP: stands for Available to Promise. It is the process of checking the available quantities of a material. The ATP quantity is equal to warehouse stock plus the planned receipts (incoming stocks). ATP takes in to account all movements into and out of the warehouse. If selected, it can check the stock examined for ATP that can be safety stock, stock in transfer, stock in quality inspection, & blocked stock, although the planned receipts & planned issues of the stock associated with ATP may be purchase orders, purchase requisition, planned orders, prodn orders, reservations, dependent reservations, dependent requirements, sales requirements & delivery requirements. Replenishment Lead Time: (RLT): is the time needed to produce the requested stock. It can be the time taken by the business to produce a material or the time taken to externally procure the mat from vendor. This includes goods receipting time. RLT is only used when doing an ATP check. The value of the RLT for a material is specified on the MMR record. • • •
The RLT for an externally procured material. This is determined based on the total of the processing time for purchasing, the planned delivery time & the goods receipt processing time. These setting can be made on the Purchasing & MRP 2 view of the MMR. The RLT for an internally procured material. This is based on the in house prodn time, found in the MRP 2 view, & the goods receipt processing time or alternatively on the total replenishment lead time, which is found in the MMR on the MRP 3 view. If a sales order is created, there is no available stock, and the ATP check is set to include RLT, the system will automatically confirm the desired quantity for the end of the RLT based on whether the material is externally or internally procured. It will still give a confirmed date according to the end of the lead-time. Should there be partial stock available, the system will confirm this partial stock available, the system will confirm this partial qty and move the remaining qty to the end of RLT. Thus it does not do an availability check outside RLT. If the RLT is three days for a specific material, it will not do an availability check outside of those three days, as it automatically thinks that it will definitely have the stock on the fourth day.
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31. CROSSING SELLING
1. Define Cross-selling Determination Procedure: IMG > SD > Basic Functions > Cross selling > Define determination procedure for cross selling
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2. Maintain Customer / Document Procedure:
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IMG > SD > Basic Functions > Cross selling > Maintain customer/document procedures for cross selling
3. Define / Assign Cross Selling Profile: IMG > SD > Basic Functions > Cross selling > Define and assign cross selling profiles
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T Code: VD02
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The field, 'PP cust Proc' in Customer Master Data needs to be updated in if the Cross-Selling is to be active
5. Condition Master Data: You can set up the system so that if a customer orders a specific article, a list of other suggested articles appears as well. VB41 – Create Cross Selling VB42 – Change Cross Selling
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32. Batch Management
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A batch in the Materials Management system is defined as a subset or partial quantity of a material that is managed separately from other subsets of the same material. Each batch is identified not only by its material identification but also by a separate batch number. Typical examples of batches include different production lots (such as paints, dyes, wallpapers, and pharmaceutical products), delivery lots, or quality grades of a material. In Sales and Distribution (SD), it is possible to determine batches that match customer specifications. Batch determination can be triggered at two points in the process, either when the sales order is entered, or when the delivery is created. If you enter a batch number directly into the sales document, the system checks whether its availability and expiration dates are valid. When you copy a pre-sales document to a sales order, any existing batch numbers are also automatically copied but cannot be changed in the sales order. If you create a sales order with materials to be managed in batches that does not have a preceding document, you can change the batch numbers until subsequent documents, such as the delivery, have also been created. If, when creating a delivery, the system discovers that the copied batch is not valid, a warning is issued by the system. In this case, the batch specification must be changed in the sales document source. Maintaining Master Data for Batches If a material is managed in batches, you indicate this fact in the material master record in either the Purchasing or Plant data/storage 1 views. You can also create and maintain master data for individual batches, specifying such information as the expiration date, valuation type, and the country of origin. If
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you are planning to use batch split at delivery time, you must also maintain the relevant customer master records for those customers who permit batches to be split.
Entering Batch Number in Sales Document Before you can enter a batch number in a sales document, a delivering plant must be entered for the item. If no delivering plant is entered, the Batch field remains inactive. You can find the Batch field on the Item overview tab page in the table with the items. If you do not know the batch number, you can display all the available batches in the delivering plant for your material, by using the input help.
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An availability check is carried out for the batch, which you have entered, and the quantity available is confirmed.
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If no batch number is proposed in the sales order for an item with material to be handled in batches, automatic batch determination can be carried out in the delivery. There are four points at which you should use batch determination in Sales & Distribution. These are:
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Quotations Quantity contracts Sales orders (or scheduling agreement) Delivery
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• • • •
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SPRO- IMG- Logistics General- Batch Management- Batch Determination & Batch Check- Activate automatic batch det for SD.
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In various industry sectors, particularly the process industry, we have to work with homogeneous partial quantities of a material or product throughout the entire quantity and value chain. In the SAP system, a batch is the quantity or partial quantity of a particular material or product that is manufactured according to the same recipe. “A batch is a quantity of any drug produced during a given cycle of manufacture. The essence of a manufacturing batch is therefore its homogeneity.” –
Federal Drug Administration in their “Good Manufacturing Practice” (GMP)
Sap Batch Management process is utilized for Manufacturing Visibility & Execution & Collaboration • •
In simple terms SAP Batch Handling means an additional keys fields for users to identify the same materials. For e.g. Normal Control : Plant + Material + Storage Location Batch Handling : Plant + Material + Storage Location + Batch Number
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Chemicals Pharmaceuticals Cosmetics Hygiene and Sanitation Food Retail
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Batch management is a functionality used in EVERY area of industry. It is used mainly in the following sectors:
Batch functions provide you with the possibility of managing and processing a non- reproducible production unit in all areas of logistics. One can follow the batch through the entire logistics chain, from its point of entry into the manufacturing process through Purchasing, until it leaves the production plant through Sales.
Integration of Batch Management:
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Batch is structured under the “LO” area in the R/3 System which stands for “General Logistics”.
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Inventory management Sales and distribution Process industry Production Warehouse management
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However it will still require Customizing settings in the respective Logistics area. These are:
Batch Management in Logistics:
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Implications to the Inventory:
The batch is a sub set of the inventory quantity. A batch, by definition is unique and can not be reproduced with the same unique properties. It is linked to the classification system and can only be used if the classification system has been set up for Batch Management and prepared properly.
Validity of a Batch Overview: •
Batch number assignment is critical for the tracking of a batch material. This unique number is set (valid) at one of three levels: material/plant; material; or client level. Changes to batch number validity level require batch reorganization.
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Objective: Understand batch number assignment and batch reorganization.
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Validity of the Batch:
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Customizing:
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Batch Number Assignment: Batch numbers can be assigned manually or allow the system to generate one.
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Internal (system generated) number assignment is activated in Customizing for Batch Management. It is activated at the Client level
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A need to generate a batch number can occur due to: – Manual creation of a batch master record. – Goods receipts. – Creation of a process or production order. – Usage decision in Quality Management. – Quality analysis. – Transfer postings (including batch splits)
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Classification & Batch Mgmt: Classification Overview
The SAP Classification system is used to: Find suitable objects, find similar objects, or find out that no suitable objects exist.
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The three main activities within the Classification system are: – Maintaining characteristics and classes – Linking objects to classes and assigning characteristic values – Finding objects
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Characteristics are defined for a specific format either characteristic, numeric, a date, a currency or a time.
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Reference characteristics pull their values automatically from master record fields. No user maintenance is required Classes are defined for a specific class type. The class type controls: the functionality for which the class is intended the type of objects that it can be used to classify
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Objects can be classified via classification transactions or directly through their master record. (I.e. the classification view of the material master) In order to do a search a user must know the class to search within. It can be found by: placing an * in the class field using search help exploding the hierarchy graphically via the characteristics to be used
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Modules That Use the Classification System
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Classification & Batch Mgmt:
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Material Master and Batch Master:
Batch master records are dependent upon their material master records.
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Batch functionality is actuated via the material master record.
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Batch classes are assigned to the material master record. Anytime a batch of that material is posted, the class will be used for capturing specifications
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Batch master records can be created ahead of time or automatically at the time of posting the goods receipt.
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Material Master and Batch Master
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Structure of the Master Records
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Integration
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Classification of a Batch
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Customizing
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Classification & Batch Mgmt
Batch determination is based on the condition technique.
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Agreements regarding specifications customers accept are captured in strategy records. During batch determination the system compares batch specifications to those in the strategy record.
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Two lists can be use to track batches: – The Batch where used list – The Pick-up list
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Pricing can be done at either the batch or material level.
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The Principle of Batch Determination
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Lists for Tracking Batches
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The Where-used List
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SAP provides reports for tracking the movement of batches into a company, through production and ultimately to the customer.
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This report tracks batches by material documents. The material can be tracked from procurement, through production and ultimately to the goods issue to a customer. Information can be displayed in top down (what batches were used in the production of this material) or bottom-up (what materials used this batch.) One can select the following documents based on a batch number: • • • •
Billing document Sales order Scheduling agreement Delivery note.
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Use of Batch Determination in Sales and Distribution There are four points at which you should use batch determination in Sales & Distribution. These are: • • • •
Quotations Quantity contracts Sales orders (or scheduling agreement) Delivery
Batch Determination in Sales Orders
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One should choose batch determination in sales orders when customer requirements take precedence over all other factors (such as stock removal strategies, for example). Use batch determination here, if a customer, for instance, requires a material with certain set specifications. One should use batch determination for the sales order to find batches for set specifications. You can also reserve batches, as requirements are transmitted via the sales order in the same way as they are via the quotation.
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Batch Determination in Delivery
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One should choose batch determination in deliveries, if dealing with materials that are constantly available (mass production)
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You want to minimize capital lockup
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The specifications are not very detailed (e.g. if you require batches that may not be sold in the USA but in Asia, or batches that are suitable for whole customer groups)
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The expiration date, or the remaining shelf life are the most important criteria
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Batch splits are necessary
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Transactions
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