TASD40 Sales and Distribution - Part I

TASD40 Sales and Distribution - Part I TASD40

R/3 System Release 46D 23.02.2001

TASD40 Sales and Distribution - Part I

TASD40 Sales and Distribution Part I  SAP AG 1999







System R/3, Sales and Distribution Release 4.6B April 2000 Material number 50037268

Copyright Copyright 1998 SAP AG. All rights reserved. Neither this training manual nor any part thereof may be passed on to others, copied or reproduced in any form or by any means, or translated into another language, for any purpose without the express prior consent in writing of SAP AG. The information contained in this document is subject to change and supplementation without prior notice. All rights reserved.

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SAP and the SAP logo are registered trademarks of SAP

DOS and EXCE L are registered trademarks of

,

,

,

,

,

, UTM and BS2000 are registered trademarks of

UNIX is a registered trademark of

UX is a registered trademark of Hewlett

,




Ethernet is a registered trademark of the Xerox




ORACLE




,

X Window Sy stem is a registered trademark of MIT

,

,

*+

OnLine and

, VAXs tation and V M S are registered trademarks of

C are registered trademarks of the ORA CLE

C are registered trademarks of the INFO RMIX

400 and

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SAP Mission

To provide Enterprise Business Solutions for sustained competitive advantage

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issues. faster productively results us




SAP’s mis sion has been the same since SAP was founded 197 2 and has inf luenced our daily and strategic




Therefore our customers can

-

Run their b usines s processes

-

Operate more

-

Have more profitable

-

Implement change by embracing new technology with

Six Key Goals Partner

 High customer satisfaction  Effective, efficient implementations  Embracing new technology  Open partnerships  Highly skilled and motivated employees

Innovator

Leader

 Strong financial results underlining market leadership

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SAP’s Core Strengths  Long-term partnerships with customers  Knowledge of business  Integration of business processes


within enterprise




across enterprises




leveraging the internet and intranet

 Enabling agility  Ability to execute a vision

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strengths experience. countries.




SAP is the leader in Enterprise Resource Planning software because we have some core




We have more than 25 years of business




We have customers in more than 50

. This has made us the fourth largest software company in the

world.

SAP R/3 - Modules FI

SD

Logistics MM PP

CO

Material Manag. Manag.

Controlling

Production Planning

TR

R/3

QM Quality Manag. Manag.

PM Plant Maint. Maint.

Accounting

Financial Accounting

Sales & Distrib. Distrib.

Treasury

Client / Server ABAP

PS Project System

WF Workflow

HR

IS

Human Resources.

Industry Solutions

Cross Application Functions

Human Resources

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Components are fully

integrated data . Once y ou enter

, it resides in the central database shared by all

applications

.

Prerequisites for TeamSAP Academy Participants  Member of the R/3 implementation team  Junior consultant (less than one year’s work experience) Knowledge  Basic knowledge of graphical user interfaces (GUI) such as Microsoft Windows  Detailed knowledge of business processes in selected application areas

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Target Group

 Audience:
Customers
Partners

beginning TeamSAP Academy

beginning TeamSAP Academy

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Notes to the user




The training materials are not

teach- programs y ourself

. They complement the course instructor’s

explanations

. Your material includes space for noting down this add itio nal

information.

Introduction: TeamSAP Academy  Mission  Course Goals  Course Content  Section Objectives  Course Overview Diagram  Introduction to TeamSAP Academy

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TeamSAP Academy Mission  Train customers and new consultants in the features, functions and best use of SAP products to meet the customer’s business goals based on a curriculum that is consistent world-wide  Provide advanced training and continuing education for experienced consultants  Provide and ensure a consistent skilled consulting base by certification and testing  Support partners who train their own employees with the same curriculum

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organization industry. partners is: goals. - 1 features - 2 consultants. - 3 worldtesting.




The TeamSAP Academy is an international institute of h igher education in SAP applications and a u nique




Open to all SAP customers and

. It is the most comprehensive train ing academy in the business software

, the Academy ’s mission

. Train new consultan ts in the

, fu nctions and best u se of SAP products to meet the customer’s b usines s

. Provide continu ing advanced training and contin uing education for experienced

. Provide and ensure a consistent

wide s killed consulting base through certificatio n and

Course Goals This course will enable you to:  Gain the basic knowledge and understanding of the R/3 system in order to make an effective implementation in one of the application areas


Accounting




Controlling




Sales and Distribution




Materials Management




Production and Production Planning




Human Resources

 Use the available tools for further development  Experience some typical project issues  Work as a project member under the guidance of a senior consultant R

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Introduction: Contents Preface Unit 1

TeamSAP Academy

Unit 4

System-Wide Concepts

Unit 2

R/3 Overview and Integration

Unit 5

Service and Support

Unit 6 Unit 3

R/3 Modules

R/3 Handling and Tools Introduction

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Sales Processing: Contents (1)

Unit 7

Case Company

Unit 8

Order Management

Unit 9

Master Data

Unit 10

Sales from Stock - Available

Unit 11

Sales from Stock -Shortage

Unit 12

Processing Inquiries and Quotes

Unit 13

Organizational Units

Unit 14

Sales Documents Types

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Sales Processing: Contents (2)

Unit 15

Item Categories

Unit 19

Partner Determination

Unit 16

Schedule Line Categories

Unit 20

Outline Agreements

Unit 17

Data Flow

Unit 21

Incompletion

Unit 18

Special Business Transactions

Unit 22

Conclusion

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Introduction Section Objectives At the conclusion of this section, you will be able to: List the application modules in R/3  Describe the structure of R/3 in general terms  Explain how R/3 can support a business process 

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Introduction Overview R/3 Overview

TeamSAP Academy

FI

SD

Financial Accounting Account ing

Sales & Distribut ion

CO

MM Materials PP Mgmt Production Production Planning

Controlling

AM

R/3

Asset Mgmt

PS Client / Server Project Project Quality System System Mgmt Mgmt ABAP PM WF QM

Plant Maintenance

Workflow Workflow

HR

IS

Human Resources

Industry Solutions

R/3 Applications

System-Wide Concepts

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Sie werden am Ende dieser Einführung mehr zur TeamSAP Academy hören. Dann gibt es auch einen Überblick darüber, was SAP an Service und Support bietet.

Advantages of TeamSAP Academy  Courses designed for customers and consultants  Experienced trainers  Exchange of experiences  Integrated case study  Certification opportunity directly after course  Course topics correspond to certification topics  Support for certified students R

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sessions especially mind. future. Academy. problem. day applications.




Topics for the evening

,




Consu ltants can bu ild their networ k for further learning in the




The case study is the major benefit of this

-

You must use all of the knowledge y ou gained and app ly it to a realistic

-

This reinforces the concepts better than just doing exercises on topics that were covered that same

-

No other course gives the o pportun ity to wor k closely with people from other

, are selected with a cons ultant’s interests and needs in

.

The Certified R/3 Consultant  Proven R/3 product knowledge  Access to information


OSS, SAPNet, mailings

 Access to experience


Workshops, exchange of experience

 Contacts with R/3 developers


Discussion forums

Quality control of consulting services Assurance for customers R

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consultants Internet consultants Internet R/ directly. database partner customers




Guarantees the quality of consulting services throu gh tests and sub sequent close con tacts with certified




Every certified consultant has an O SS ID and access to specific information v ia




The Academy also offers special workshops for experienced




Certified consultants can participate in special discussion forums via




SAP publishes the n umber of certified consultants of a partner in its partner

-

-

.

.

.

Customers are increasingly considering th is information w hen selecting the

SAP has begun a worldw ide market in itiative which clarifies the certification process for

, so that they can ask q uestion s and make su ggestions to the

3 developers

.

.

.

Certification Areas for R/3 Consultants  R/3 Application Consultant


Accounting




Controlling




Materials Management




Production Planning




Sales & Distribution




Human Resources




ABAP Programming

 R/3 Technical Consultant


Operating system and Database specific (Unix, NT, Oracle, Informix, Adabas, SQL-Server, AS/400) R

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person- release-related application. fields. database-specific




Certification is




Certification is specific to a g iven

specific and

-




The certificate for technical consultants is operating sy stem and

It can be acquired in different application

.

Becoming a Certified R/3 Consultant

R/3 beginner

TeamSAP Academy basic training

R/3 test

Junior consultant

R/3 training

R/3 test

R/3 certificate

Experienced R/3 consultant

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consultant general 5 6certificate.




There are different way s y ou can acquire the essential knowled ge of a certified




TeamSAP Academy offers a

- or

week basic training worldw ide to help y ou acquire the essential know ledge needed for the

. In

, the same test will be used to test y our

knowledge.

TeamSAP Academy Training SAP Overview

½ 6 weeks

ASAP and Implementation Guide Competence

Functional part

General

Integrated case study

Intermediate

9½

5

8

HR

HR

HR

FI

FI

FI

CO

CO

CO

MM

MM

MM

SD

SD

SD

PP

PP

PP

1

Case study presentation & review Test

1

4

Test R

ABAP 4 weeks  SAP AG

1

1

Developing R/3 Consultant Knowledge Knowledge

Expert Forums Certified Consultant

In-depth courses 1-2 weeks

(Advanced Level)

Experience as project manager

Level 3 courses, Workshops Certified Consultant Basic training 5 weeks

Experience as junior consultant (min. 1 year) R

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Consultants program. workshops in- course in- course test of Level ‘ offer




In addition to the certificate for SAP

, we also offer an extended training




After y ou have collected experience as a junior certified SAP consultan t and visited further Level 3 courses and




At the end of the




This further certificate will enable y ou to ta ke over project management and allow y ou to ta ke part in the

dep th

, y ou can apply to do an

, there is ano ther

Expert Forums’ that we

. At th is s tage y ou can attain the title

.

: SAP Con sultan t Advanced

depth

.

.

Time

Consultant Qualifications  SAP Certified Consultant


Basic knowledge of R/3 Customizing in a business environment




Basic knowledge of R/3 Business Engineering and Implementation Tools




Project team member under guidance of an experienced R/3 consultant

 SAP Certified Consultant (Advanced Level )


Comprehensive knowledge of business field and its interfaces




Detailed R/3 knowledge in certified business field




Project manager in an R/3 project in certified business field




Detailed knowledge of R/3 Business Engineering

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The Advanced Level demands expert knowledge in a special

area. in- knowledge. year.

-

It requires the successful completion of ano ther test wh ich as ks difficult and comprehensive questions of the

-

It also requires practical experience of at least one

depth

Certification Test  Application Consultant


3 hour multiple choice test

 Technical Consultants


2 hours multiple choice test (80 questions) on R/3 basis




1 hour multiple choice test (40 questions) on operating system




1 hour multiple choice test (40 questions) on database

 All tests carried out on a PC

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Approximately

85

% of those taking the certification test achieve a passing

score.

R/3 Overview  The big picture  Integration  Designed for all businesses

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R/3 Overview: Unit Objectives At the conclusion of this unit, you will be able to: 

Describe the benefits of integration



Describe how SAP makes R/3 useful for all types of businesses

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Introduction Overview: R/3 Overview R/3 Overview

TeamSAP Academy

FI

SD

Financial Accounting Account ing

Sales & Distribut ion

CO

MM Materials PP Mgmt Production Production Planning

Controlling

AM

R/3

Asset Mgmt

PS Client / Server Project Project Quality System System Mgmt Mgmt ABAP PM WF QM

Plant Maintenance

Workflow Workflow

HR

IS

Human Resources

Industry Solutions

R/3 Applications

System-Wide Concepts

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Main Business Scenario  You work for a company that is considering

implementing R/3  You are on the team that is evaluating systems  In order to evaluate R/3, you need a basic

understanding of how it works  You have heard that R/3 is an integrated

system and you want to learn what that means and the benefits of integration

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The Big Picture Application Link Enabling (ALE)

Technical Lo gi st ic s

Interfaces Remote Function Call (RFC)

Ac c

ou

Functions, Data, and Organizations

Information Flow Features

Object Linking and Embedding (OLE)

Integration

nt in

g

Electronic Data Interchange (EDI)

Common Program Interface Communications (CPI-C) R

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logistics accounting effort. time.




The technical integration of the




It eliminates a lot of d uplication of




It also helps ens ure information flows to the correct place at the correct

,

, and information flow features is one of o ur greatest

benefits

.

SD MM PP

What Is Integration?

 Seamless processing of common data between applications  Comprehensive support and reference tools  Common reporting features and functionality  Object and application linking and overall system communication

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data changes R/ applications Integration of application

Each time an application module




The data entered is updated in the database used by the

, the




The




Several users can work in an application using different languages because the

Interactive

R/

3 Sy stem automatically updates the data in the other application modules that are

processing consistent

3 Sy stem interactively processes the user’s inpu t and checks it to ensure that the data is

Integration of Several Lang uages in Rea l

Time R/

3 Sy stem updates the data that was entered in different languages at

affected interface .

. All applicatio n modules have the same architecture and user

.

.

runtime R/ . T he

3 Sy stem is delivered in most

languages Mandarin , includ ing Kanji and

CO AM

R/3

QA PM HR

 Common organizational structures throughout the system




FI

.

IS

PS WF

Benefits of Integration

SD MM PP

FI CO AM

R/3

QA PM HR

PS WF

IS

 Timely access to common information  Flexible and adaptable to growth  Eliminate duplicate entries  Visible business results across functional boundaries  Minimize systems interfaces and maintenance requirements while maintaining portability  Immediately reflect financial impacts  Capture decisions at the source for better control and accuracy R

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Data is available to anyone who needs it, anywhere, anytime. Processes can be done concurrently, rather than consecutively. This reduces process time. Data moves across business applications, avoiding duplication of effort and minimizing missing or erroneous data.

Designed for All Types of Business Business Process Order Processing Product Development Customer Service Financial Reporting Pr De M Pe Se F od ar ve rs rv Ac ina k u on i lo e c ct co nc e pm Sal tin ne io un ial n l en es g ti n t g

Function  SAP AG

R/ architecture. components infrastructure process (BAPIs stable Framework customers organizations




The Busines s Framework is the

3 Sy stem product




It works with business




Enterprise software can react quickly to new bus iness requirements and be changed or enhanced easily without interrupting the bus iness




Busines s components interact in the Busines s Framework u sing open Bu siness A pplication Programming Interfaces




These interfaces are defined within the framework of the SAP in itiative with

, wh ich are software modules that can be configured and provides en terprises with a moving bus iness

.

.

). BAPIs also provide a

, partners and leadin g standardizatio n

, standardized interface for integrating external applications and components in the Bus iness

.

.

R

Country Settings: Country Program ...

Calendar

Euro

ns

Gl

SAPscript

Currency

io ct un

Date format

Payment program

lF ra ne Ge

ob al Fu nc ti o ns

Address form

Dunning program

Local Functions

... Taxes

Accounts Accruals/ Public deferrals reporting chart

Payment methods

...

... R

 SAP AG

R/ unit R/ delivered country(examples 001 accounts - Set- programs banks schemas rates taxes posting P/ outline chart areas parameters - Calendars (example forms) areas elements P/
Note accounts programs




The country program is used in the first




Country programs implement

3 project undertaken by any local

. You run the country program in Clien t 001 of the

3 Sy stem as

. Coun try programs create a

specific Cu stomizing env ironment using standard Customizing

):

-

Country instan tiatio ns of the OrgUn its in Client

-

Charts of

up of pay ment

-

House

-

Tax calculation

-

Automatic

-

Balance sheet and

-

Depreciation

-

Forms

-

Controlling

-

Cost

-

Profit center sets for balance sheet and

, tax

, and withholding

L

, depreciation

, and depreciation

: pay ment

L

: A ll company codes assigned to the same controlling area must use the same chart of

. For more about country

, see the documentation

functionality.

R/3 Overview: Unit Summary  Describe the benefits of integration  Describe what SAP does to make R/3 useful

for all types of businesses

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R/3 Applications  Business Processes  Human Resources  Financial Accounting  Controlling  Sales and Distribution  Materials Management  Production Planning

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R/3 Applications: Unit Objectives At the conclusion of this unit, you will be able to: 

List the application modules supported by R/3



Briefly describe the applications supported by R/3

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Introduction Overview: R/3 Applications R/3 Overview

TeamSAP Academy

FI

SD

Financial Accounting Account ing

Sales & Distribut ion

CO

MM Materials PP Mgmt Production Production Planning

Controlling

AM

R/3

Asset Mgmt

PS Client / Server Project Project Quality System System Mgmt Mgmt ABAP PM WF QM

Plant Maintenance

Workflow Workflow

HR

IS

Human Resources

Industry Solutions

R/3 Applications

System-Wide Concepts

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R/3 Applications: Business Scenario  You need a list of the applications R/3

supports  You need a general overview of the

functionality of each application

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SAP R/3 Modules

FI

SD

Logistics MM PP

CO

Material Manag. Manag.

Controlling

Production Planning

TR

R/3

QM Quality Manag. Manag.

PM Plant Maint. Maint.

Accounting

Financial Accounting

Sales & Distrib. Distrib.

Treasury

Client / Server ABAP

PS Project System

WF Workflow

HR

IS

Human Resources.

Industry Solutions

Cross Application Functions

Human Resources

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Components are fully

integrated data . Once y ou enter

, it resides in the central database shared by all

applications

.

Business Process Overview Financial Controlling

Human Resources

Cost Controlling Sales

Presales Activity

Kundenauftrag

Sales order

Stock change

Production SOP

Purchasing

MPS

Purchase requisition

Logistics Controlling

MRP

Delivery

Planned order

Vendor selection

Invoicing

Production order

Purchase order

Goods receipt

Customer payment

Shop floor control

Invoice Vendor verification payment

Sales, Sales, Production, Production, Purch., Purch., Warehouse Man. R

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profitability incurred. real-time decisions. activity application.




Busines ses are striving to gain efficiency in their log istics processes to ens ure




The




Transaction related process chains trigger the nex t

. Th is translates into getting the righ t product to the rig ht p lace at the right time with the least cost

, integrated processes in the sy stem provide immediate access to reporting information used to support y our bus iness

, even if it is in a different

Human Resources Accounting Travel Management

Payroll Accounting

Master Data

Personnel Cost Planning

Recruitment

HR

Personnel Planning

Training and Event Management

Information System

Time Management

Organizational Management

Logistics R

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Human Resource Management is responsible for personnel recruitment and

management are: administration data accounting employees management employees planning management planning planning planning -Recruitment applications costs expenses documents advances Management . The main components

-Personnel

: Manages employ ee master

-Payroll

: Determines and pay s salaries and wages to

-Time

: Manages attendance and absence time of

-Personnel

: Organizational

, shift

, career

: hand les advertising and manages

-Trip

-Training and Event

: manages

,

, trip accounting and

, and personnel cos t

Financial Accounting Accounts receivable accounting FI-AR Accounts payable accounting FI-AP

Product costs

Treasury Management

Overhead costs

General Ledger Profit & Loss

Balance Sheet

Financial statement Profit center

Asset accounting FI-AA

HUMAN RESOURCES INVENTORY MANAGE. PURCHASING SALES

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sub- ( payable accounting consolidation treasury. accounts Accounting Accounting applications flows processes.




Financial Accounting main components are general ledger and

ledger accounting




The data comes from the operational or planned bu siness processes in Log istics and is u pdated in the accounts of the respective chart of




In addition to processin g pay ment

accounts

, Financial Accounting prov ides the basis for identify ing all evaluated bus iness

, accounts receivable and asset

. If these bus iness processes are to be modeled in

),

, and

, th is can be carried out in the modu le Financial

. Incoming and o utgo ing invoices can be created from the logistics

.

Controlling CO PA

Overhead Cost Controlling

Cost center

CO PC

Internal order

Product Cost Controlling

Material costs Production activities

Production order

Overhead costs

Cost Element Accounting

FI

HR

MM

ECPCA

Profit Center Accounting

CO OM

Profitability segment

Profitability Analysis

SD R

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Controlling Aus den Anwendungen des Finanzwesens, der Personalwirtschaft, der Materialwirtschaft und des Vertriebs werden die Aufwendungen und Erträge über die Kosten- und Erlösarten in die Anwendungen der Kostenrechnung gebucht. Kosten, die nicht einem einzelnen Kostenträger (z. B. Fertigungsauftrag) zugeordnet werden können, werden an Kostenstellen oder Innenaufträge (Gemeinkostenaufträge oder Investitionsaufträge) im Gemeinkosten-Controlling verrechnet. Die aufgrund von Kundenaufträgen gefertigten Produkte werden in der Produktkostenrechnung mit Materialkosten, Fertigungsleistungen und Gemeinkosten belastet. Materialkosten entstehen aufgrund des bewerteten Materialverbrauchs in der Fertigung. Preise für Fertigungsleistungen werden über Leistungsverrechnung an die Kostenträger weitergegeben. Gemeinkosten können von Kostenstellen oder Innenaufträgen an Kostenträger übergeben werden. Gemeinkosten können auch direkt auf ein Ergebnisobjekt gebucht werden. Gemeinkosten und Fertigungskosten können auf ein gemeinsames Ergebnisobjekt kontiert werden.

Sales and Distribution: Overview S A L E S

Pre-Sales

I N F O R M A T I O N

Sales Order Processing

Contact Contact Inquiry Inquiry Contract Contract

Scheduling Scheduling agreement agreement

Quotation Quotation

Order Order

Inventory Sourcing Delivery/ Transportation

Delivery Delivery Transfer Transfer Order Order

Billing

S Y S T E M

Goods Goods Issue Issue Shipment Shipment

Invoice Invoice

Customer payment/ Financial Accounting Accounts Accounts Receivable Receivable

Material Material Stock Stock Account Account

 SAP AG




















Pre- calls inquiries quotations lists etc. pre- orders order information details information. supplied stock supplier in-house. picked customer items. delivery over. payment credit receivables discounts. necessary. sales activities involve sales

After

,

sales activities cus tomers may place

. Ty pically a customer service representative receives an

Inventory sourcing determines how the product is to be

The items are

,

, packed and sh ipped to the

Customer pay ment involves receiving and recording of the cus tomers

The final step will in volve the posting of pay ments against invo ices and reconciling d ifferences if

, phone calls

. An order generally includes customer and item

. And will determine if the product is ta ken from available

Invoicing generally occurs after

, mailing

, purchased form an external

, pricing

, shipped from another warehouse or manufactured

. A delivery note accompanies the delivered

. Once the invoice is created the financial department ta kes

, increasing the cus tomer’s available

, reducing

, and recording any cash

P R O D U C T I O N

M A T E R I A L S

, delivery schedules and billing

M A N A G E M E N T

P L A N N I N G R

Materials Management MRP Internal Procurement Production

External Procurement Purchasing

Invoice Verification

Master Data

Inventory Management Goods Issue

Invoice Receipt

?

Internal/External Accounting

Goods Receipt

Sales

Transfer Posting

Material Batches Vendor G/L Accounts Storage Bins . .

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The procurement carry out in component materials management (module MM). Because of the integration of the the Sales and Accounting modules, the data involved in the procurement process can be processed efficiently.
Purchase orders for consumable materials or services can be assigned directly to a cost center or order (interface to the CO Cost Accounting module).
The Purchasing department maintains the data of the vendors defined in the system together with the Financial Accounting department (module FI). For each vendor, a vendor master record is maintained that contains both financial accounting data and procurement information. In financial accounting the vendor master record is the vendor account.
Within MRP, a requirement generated in the sales area (module SD) can be passed on to purchasing. In addition, the requirement can be assigned to the customer order when the purchase requisition is entered.



Manufactoring Planning and Execution Procurement

Sales Info System

Forecasting

Demand Mgmt

Sales & Oper Planning

MPS

MRP

Manufacturing Execution

Order Settlement

CO/PA

Inventory

Costing

Capacity

Production Master Data R

Reporting and Analysis  SAP AG




The overall manufacturing planning process is comprised

of: costing/ (SOP determined. ( resources planned performance. (MRP process requisition

-The forecast values and requirements from the sales information sy stem and

-Master Schedule items

-Material requirements planning




The overall manufacturing execution process is comprised

profitability analy sis are inputs to the Sales and Operation s Planning

those items that greatly influence profits or consume critical

) phase in which independent requirements are

) are

) is the final step in the p lanning

. Planning the master schedule items separately leads to a reduction in stoc k levels and improved delivery

. The outp ut of M RP is either a planned order or a purchase

.

of: released. issued.

-Production orders are

-Materials are

-Completion conf irmations are performed

stock. capacitycostinginventoryreporting analysis. -Goods are received into




The manufacturing process affects

,

,

,

, and

R/3 Applications: Unit Summary 

List the application modules supported by R/3



Briefly describe the applications supported by R/3

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System Wide Concepts  Enterprise Structure  Organizational Structure  Data Structure  Technical Architecture  Documents  Data Warehouse  Workflow

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System-Wide Concepts: Unit Objectives At the conclusion of this unit, you will be able to: 

List several system-wide concepts



Describe the structure of R/3 in general terms



List benefits of the architecture of R/3

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 SAP AG

Introduction Overview: System-Wide Concepts R/3 Overview

TeamSAP Academy

FI

SD

Financial Accounting Account ing

Sales & Distribut ion

CO

MM Materials PP Mgmt Production Production Planning

Controlling

AM

R/3

Asset Mgmt

PS Client / Server Project Project Quality System System Mgmt Mgmt ABAP PM WF QM

Plant Maintenance

Workflow Workflow

HR

IS

Human Resources

Industry Solutions

R/3 Applications

System-Wide Concepts

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System-Wide Concepts: Business Scenario You want to learn the basic structure of the R/3 system  This will help you decide if R/3 is appropriate for your company 

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Enterprise Structure

SAP

Group

Client

Company

Company code

Subsidiary

Plant

Plant

Sales organization

Service company

Distribution channel

Distribution channel Product line

Department

Division R

Storage location

Storage location

 SAP AG

units functions. application ( example Sales ( example System codes. plant.




An enterprise structure is mapped to SAP applicatio ns us ing organizatio nal




Organizatio nal units may be assigned to a sing le




The enterprise structure is organized hierarchically in the SAP




Several plants may be assigned to one company code and several warehouses may be assigned to one

. Organizational un its han dle specific business

.

for

. The client is at the h ighest level and may cover several company

, sales o rganization assigned to

) or to several applications

for

, plant ass igned to Materials Management and Production

Planning).

Organizational Structures

Client

Company Code 1000

Company Code 1100

Controlling Area 2000 Plant 1000

Plant 1100

Plant 1200

R

 SAP AG

highestR/ R/




The




Flexib le organizational un its in the




By lin king the organizational units the separate enterprise areas can be integrated and the structure of the whole enterprise represented in

client subsidiaries modeled units R/3.

level element of all organizational un its is the

3 Sy stem

3 enable more complex enterprise structures to be

. This may be a company group with several

. If there are many organizational

. All the enterprise data of the

, the legal and organizational s tructure of a company can be presented in different

R/ area views. 3 installation is bro ken down at least into client

, usually also into lower level organizational

structures.

Data Types in R/3 Purchase Order

 Transactional Data

1




2





Purchase order Goods receipt Accounting posting

 Master Data



Master Data





Customer master Material master Asset master Vendor master

 Table Data (Customizing) Plant

Plnt Section PersResponsible Phone

1000 1000 2000 3000

010 100 100 100

Weber Meyer Schultz Levy

1757 1964 7566 2637

 SAP AG

R/ system day-tosystem applications. business. There are 3 different ty pes of data in the




Transactional data is the




Master data is core information that is shared across




Table data is the data that is s pecially configured for y our

3

day information that is pu t into or generated by the

.

. It includes transaction s in all

applications.






Payment terms Tolerance settings Pricing condition tables R

Master Data Views

General Data (crosscross-company) company)

Master Data (For example, example, customer master data) data) Accounting Data (relevant for company code only) only)

Sales and Distribution Data

R

 SAP AG

database ( example customers suppliers materials accounts). (cross-application). order -Example deliveryinvoice function units modules -Example data units: code organization channel -division




Master data refers to data records held for a long period of time in the




Master data is stored on a central sy stem

.

For

,

: The customer master data -




Master data has an organizational




Master data may be used across

. It is as signed to organizational

-sales

-distribu tion

,

,

, pay ment and so on could be used in o ne customer

.

: Customer master data share the sales and distribu tion and financial accounting

-company

,

. One cus tomer master record may be assigned to the follow ing organ izational

,

.

Integrated Technical Architecture PP QM

MM PM

SD

FI

HR

IS

CO WF

AM PS

R/3 Operating System

Hardware

R

 SAP AG

R/ System requirements R/ database environment enhancements system components products




Using the




The

3 Basis

, y ou can run application s can on different platforms with increased performance and adapt them to customers’ indiv idual

3 Basis software processes the application ’s requirements and forwards them to the

-ensures that the application is optimally embedded in the sy stem

-defines a stable architecture framework for sy stem

-contains the tools for managing the whole

-enables distrib utio n of resources and sy stem

-provides in terfaces for decentralized sy stem components and external

. It also

.

Client/Server Environment  SAP R/3 architecture is based on a software-oriented, multi-tier client/server principle  The multi-tier client/server architecture within the SAP R/3 network provides optimum use of processing resources and flexibility for future growth  SAP R/3 integrated software functionality is portable across different hardware platforms  Logical and physical structures allow task processing to be distributed across the environment

R

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Client/ Principles terminology (software- view clients time services (host (hardware- view). Server Basic




In SAP




Software components that u se this service are called




A server often also means a computer

, a s oftware component provides a service

. At the same

) on which software components run that provide s pecific services

oriented

, such clients can also be servers for specific

). This ty pe of component can consist of a process or a group of processes and is then called a server for that

.

oriented

service.

Documents: Output Types

.... .... ....

.............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. ..............................

.............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. ..............................

.............................. .............................. ..............................

.... .... ....

.... .... ....

Immediately (e.g., create an order)

.... . . . .. . . . .... . . . .. . . . . . . .. . . . . . . .. . . . .... ....

.... .... ....

.... .... ....

On request (e.g., print transaction)

.... . . . .. . . . .... . . . .. . . . . . . .. . . . . . . .. . . . .... ....

.... .... ....

With next selection run or at a specified time (e.g., scheduling)

Timing

Output Output type

Online (output to screen)

Printer

Fax Telex

E-Mail

EDI R

 SAP AG

request order agreement confirmation on required program. media Customizing type type message partner.




Each time y ou save a quotation




You can release individual messages during processing v ia the different communication




A form can be defined for each message




Message control can be the default value in the master record of the business

,

, outline

, quotation request

, delivery note and so

, an ou tput format is generated by the document

. Messages can be released either automatically or manually using a message control

, prov ided that the relevant message ty pes and communication media have been assigned in

, contain ing for example the format of the

. You can define when and how messages are sent for each document

.

concerned

. Th is ou tput format represents a message

( type message

). T he message is then placed in the message queue and

then

, from here it can be released for printing or outpu t via

EDI

, or whatever is

Reporting Concepts Online Analytical Processing

OLAP Analysis tools

DATA WAREHOUSE Aggregated information

OLTP

External data

Materials Production Management Planning Sales and Finance Distribution

Integrated application modules  SAP AG

State-of-the- threeefficient systems data level information data form
Integrated compact warehouse tier. way management.





art data warehouse concepts u se a

The three tiers subdiv ide the flow of

, from data acquisition in the operative sy stems right through to the presentation of information at the top

tier model as the starting point for implementing

This is achieved by compressing the application data to obtain more




The statistical data obtained in th is way can then be analy zed using a variety of analy sis tools wh ich are available in the th ird




These tools offer a wide range of methods that allow statistical data to be analy zed and presented in an efficient and impressive

.

.

, operative applicatio ns in OLTP sy stems form the basis for obtainin g




, integrated information

, informative key figures and then managing it in the database tables of a data

. They can therefore make a huge contribution towards reducing the time needed to make decisions in modern

. They are filled with large quantities of master and process

.

. The Information Sy stems serve to present th is information in a compact and structured

.

Online Transaction Processing

R

Logistics Data Warehouse in R/3 OLAP

Online Analytical Processing

Business Intelligence Qty

Time

DATA WAREHOUSE

Info structures S001

S039

S012 S...

OLTP

Online Transaction Processing

LIS updating

SAP R/3

SAP R/2 R

 SAP AG

Distribution Purchasing Production Management Management Maintenance Management. database systems figures. AccountingControlling modules.




The Logistics Information Sy stem is a component of the SAP Open Information Warehouse and provides information from the areas of Sales and




Important information is s tored in the Logis tics Data Warehouse’s own




Further information sy stems are available for the Financial

,

, wh ich is maintained in parallel to the operational

,

,

. The key concept here is that the detailed data in the o perational sy stems is transformed into signif icant key

, and Human Reso urces

, Inventory

, Warehouse

, Plant

, and Quality

Workflow in R/3 Arrange visit SD - Clerk

Sales Rep.

Change customer master

Adjust credit limit

Application

Credit-clerk

Change document Change production plan

Flexible link

Prod. Manager Major Customer Workflow

R

 SAP AG




SAP Bus iness Wor kflow is a sup port to ol that can optimize the execution of




Workflow enables the electronic wor kflow management of structured flows

activities automated that: - activities - form . Work steps carried out consecutively can be

, the information f lows can be

coordinated.

Cover a sequence of

Alway s occur in the same or similar

-

Involve several departments or people

departments/divisions ”right ”right ”right ”right people component. human/ required boxes. not E-mail EDI processes.




Workflow con trols flow according to a predefined model and are especially suited for structured organizations divided into




Workflow brings the




A workflo w item is a wor kflow tas k that has itself been generated from a workflow and appears in the inb ox of the office




If




Workflow is

” wor k in the

” order at the

manual intervention is

:

” time to the

, employ ees can deal with messages in their electronic mail

,

, AL E or management of screen sequences within a transaction - Wor kflow can make use of all these

”

. T his can be done through automated mail or throu gh a wor kflow

item

.

Extended Supply Chain via Internet

Purchasing

Sales/Shipping Production Products

Products Vendor

Customer Contract

Contract

Purchase Order

Order

Intranet

Internet

Internet

R

 SAP AG

R/ System (ITS components ( Protocol R/ System program R/ Internet scenarios developments. Internet company increasing Internet documentation. Internet / I ntranet Applicatio ns in t he




The Internet Transaction Server




To make it easier for users to connect the




The range of applications is not limited to the worldw ide

3

) is the technolog ical basis for Internet application

3 Sy stem to the

A description of the Internet scenarios is availab le in the o nline

. The ITS cons titu tes th e interface between an HTTP server

, SAP has developed Internet application components for important business application

. For internal communication in a

Hy perText Transfer

) and the

3

. The WebBrowser acts as a presentation

. These scenarios can either be used directly or as as a reference for y our own

, the sign ificance of the Intranet is

. In bo th networ ks the same protocols and services are used that were originally developed for the

.

. The HTTP server transfers the data to the browser

client

. The software is available as of

R/ 3. 3 Release

1G and runs under a server for Windows

NT 4.0. ®

System-Wide Concepts: Unit Summary 

List several system-wide concepts



Describe the structure of R/3 in general terms



List benefits of the architecture of R/3

R

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TeamSAP Academy: Support and Services  Service and Support Infrastructure  Online Service System

R

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Introduction Overview: TeamSAP Academy R/3 Overview

TeamSAP Academy

FI

SD

Financial Accounting Account ing

Sales & Distribut ion

CO

MM Materials PP Mgmt Production Production Planning

Controlling

AM

R/3

Asset Mgmt

PS Client / Server Project Project Quality System System Mgmt Mgmt ABAP PM WF QM

Plant Maintenance

Workflow Workflow

HR

IS

Human Resources

Industry Solutions

R/3 Applications

System-Wide Concepts

R

 SAP AG

SAP R/3 Service & Support: Infrastructure Regional Centers Headquarters (7x24)

SAP

R/3 customer

Local

Service Center

Software Factory

Regional Support

Development Support

Regional

Central

Local Support Training Consulting

Partners Local Consulting Technology

System houses Hardware

...

Implementation R

 SAP AG

(local) - Training - Consulting support (regional) Europe Americas ( 24h) (central) - Development planning activities




SAP international subs idiaries




Regional Service & Support Center

-




Headquarters

Local

-

Regional service and su pport for

-

Depth processing of s upport

-

Strategic service and suppor t

Coordination of service and sup port

,

7x

, As ia and Australia

R/3 Online Service System (OSS) Functions

SAP Customer



Problem messages



Notes



Hot News



Online corrections



Service requests



SAP Software Change Registration



Training details



Maintenance of customer master data

OSS

Partner

R

 SAP AG

R/ Systems. keywords topic - Example (HotNews - Example functions. ( Rel 3.0 objects. R/ Packages. ( numbers names users. courses. problem-solving.




Report problems on cus tomer




Find N otes in O SS us ing

3

.

: Search on Contact to find SAP contacts for any




Display the latest from SAP

.

).

: News of Hot Packages or new OSS




Generate and fetch developer key s




Import preliminary corrections right into y our

from




Maintain y our company OSS user data




See the latest overview of SAP training

.

) for developers and also for SAP standard

3 Sy stem with Hot

phone and fax

Allow a member of the SAP service team access to y our sy stem for quicker

, first and last

), and ap ply for more OSS

R/3 Overview Summary List the application modules in R/3  Describe the structure of R/3 in general terms  Explain how R/3 can support a business process 

R

 SAP AG

Tools: Topic Objectives At the conclusion of this topic, you will be able to:  Use various types of Help
Extended help
R/3 Library
Glossary
Release notes

 Use the session manager  Describe how and when to use the

Business Navigator

R

 SAP AG

Getting Help with the R/3 System

SAP R/3

Office Logistic Accounting Human resources

Information systems Tools System

? ? Dynamic menu

Help

Extended help R/3 library Find... Glossary Release notes Getting Started Settings... Help on help

R

 SAP AG

There are many ways to access help within R/3. Getting Started is a good introduction to the basic concepts of the R/3 system, such as logging on and off, using the R/3 System, working with several sessions etc.  It describes common screens.  It describes common actions.
Getting Started is part of the R/3 Library.  It is in HTML format.  It contains links to other help sections.
Release Notes explain what has changed between releases of R/3.



SAP HTML Help Files SAP Help - R/3 Library Hide

Back Forward Home Print

Options

Contents Index Search R/3 Library

BC - Basis CA - Cross Application FI - Financial Accounting HR - Human Resources LO - Logistics Information

R/3 Library

R

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Most R/3 Help files are HTML files. R/3 Library is an online library of the entire R/3 documentation. You can search for the information you need or drill down through applications.
Extended Help brings you to specific help within the R/3 Library based on the screen you are on when you invoke it.
The Glossary defines technical terms used within R/3.



Help on the Screen Fields

F1

F4

Company code

Field:

Company code

Definition:

The company code represents an independent accounting unit e.g. a company within a corporate group.

? ? Comp. code Company name 0001

SAP AG Walldorf

0002

SAP Italia

0003

SAP Schweiz

Choose Extended help

Technical info R

 SAP AG

For help on a field, place the cursor on the field and press [F1] or choose the help symbol - a question mark.  You can access glossary information for terms highlighted in the help text.  To do this, point to the term and click with the mouse or position the cursor and click the Link button.  For further information on possible entries and the field definition, press the Possible field entries and Technical info buttons on the help screen.
Access a list of possible entry values or matchcodes to help you search for the data you require, by placing the cursor on the entry field and pressing [F4] or choosing the down arrow at the end of the field.
To transfer a value from the list of entry values to the entry field, place the cursor on the value and press the Choose key, press [F2], or point and double-click the left mouse button.


Session Manager  The SAP Session Manager is a tool for system logon and session control  It provides an easy way to use R/3 functions


You can manage your sessions in one or more R/3 Systems and in different SAP clients

Customizing Display Options

Options Clipboard Generate Graphics Session Manager Alt + F2 Generate Shortcut... Response Time Default Size Hardcopy About...

 Access the session manager through customizing display options R

 SAP AG













If you use more than one SAP R/3 system at a time, you can use session manager to keep track of the different R/3 systems available and open. Typically, users are only authorized to run functions from their user menu. Several types of menu are available:  User menu  Company menu  SAP standard menu You use the system tab to display and start functions and to manage your SAP sessions (windows). The SAP System tab contains a label identifying the SAP System and the client code, a control bar with icons and logon information The R/3 System you selected is actually started as you call an SAP function. The Overview tab contains an overview of all sessions of all systems you are logged on to.  This tab displays all items of all session lists of your active SAP System tabs.  You can delete sessions and create new sessions from the Overview tab. To do this, use the functions of the pop-up menu by positioning the mouse pointer on an item and pressing the right mouse button.

The Business Navigator  The Business Navigator provides a picture of functionality and integration of SAP R/3  The Business Navigator can be used to:


Quickly analyze requirements and gaps




Efficiently implement the R/3 System




Continuously optimize business processes




Effectively create structured business process documentation

SD SD MM MM

Improve training

QM QM

Reference Model

HR HR

AM AM

IS IS

R

 SAP AG





CO CO

R/3

PM PM




FI FI

PP PP

The business navigator provides a direct link into the transactions and documentation. It can provide a view of the process from various levels of detail.

PS PS WF WF

Basic Elements of Modeling Name

Symbol

Definition

Event

Describes occurrence that causes an effect (e.g., customer inquiry about product price)

Function

Describes business task following an event (e.g., entering an inquiry) XOR

V

V

Logical operators

Link events and functions

Control flow

Describes relationship and sequence of events and functions

Process path

Shows connection between processes R

 SAP AG






The business navigator provides a graphical view of the process in which you are working. Double clicking on an event provides a list of where that particular object is used and its attributes. Double clicking on a function takes you directly to that task on R/3.

Logical AND Operator  All events linked by an AND must have occurred to trigger the following function

Oven is turned on

Cookie dough is ready for baking V

V

Bake cookies

and

R

 SAP AG

In this example, ”Cookie Dough is Ready for Baking” and ”Oven is Turned On” must have occurred to Bake Cookies
If you (or the system) have not completed both events, you are not able to continue.
You may receive an error message telling you that a required field has not been completed.


Logical XOR Operator  One and only one of the functions linked by an Exclusive Or Operator must have occurred to trigger the event

Make cookies from mix

Make cookies from scratch

XOR

XOR

exclusive or

Cookies are made

R

 SAP AG

In this example, either the ”Make Cookies from Mix” or the ”Make Cookies from Scratch” must have occurred to trigger ”Cookies are Made.”
If you enter one function in the system, it will not allow you the option of entering the alternate.


Logical OR Operator  One or more of the linked events must occur to trigger the following function

Take cookies from oven

V

Cookies are good

V

Cookies are burned

either/or

R

 SAP AG




In this example, either the ”Cookies are Good” or the ”Cookies are Burned” may occur from ”Take Cookies From Oven.”

Introduction: Unit Summary  What are the

methods to access help?  What is the R/3 Library?  If you are within a task and

select [F1], which type of help do you access?  How can the Session Manager

help you?  What does the Business

Navigator do?  Why would you use the

Business Navigator?  SAP AG

R

Introduction

R

 SAP AG

Getting Started: Contents

Unit Objectives SAP R/3 Tools Summary ?

Exercises Solutions

R

 SAP AG

Introduction: Unit Objectives At the conclusion of this unit, you will be able to:  Navigate within R/3  Identify commonly used tools  Describe when to use the common tools

R

 SAP AG

Introduction: Scenario  The IDES company makes a variety of

products and provides numerous services  IDES is implementing R/3  You are a member of the implementation

team

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 SAP AG






You are an employee of IDES company. IDES is implementing R/3 and you are a member of the implementation team. Throughout this course, you will be using and testing R/3 functionality for IDES to ensure it effectively handles your business processes.

SAP R/3: Unit Objectives At the conclusion of this unit, you will be able to:  Log on to R/3  Navigate within R/3  Create multiple sessions  Identify icons  Change user settings

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Logging on in the R/3 System

Client User Password Language

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Before you log on to the R/3 System, you need to know your client number, user name and password. If you prefer to work in a language other than the default, you also need to set the appropriate language indicator. If the Client field already contains a client number, you can either accept this entry or overwrite it. Press the TAB key to place the cursor at the beginning of the User ID field. Enter your user name in the User ID field and press the TAB key to move the cursor to the Password field. Enter your password in the Password field. As you type in the password, the asterisks (*) remain in the field and only the cursor moves. As a security measure, the system does not display what you type.

R/3 Window

Window Menu

SAP R/3 Office

Logistic Accounting Human resources Information systems Tools System Help

? ? Dynamic menu

Customizing Display Options

Title Bar

Enter Icon Function Buttons

Menu Bar Application Toolbar

Function Icons

Command Field

Status Bar

Session Number

System Number R

CIP (1) (001)

hs 2135

OVR

04:27 PM

 SAP AG








Listings appearing on the menu bar are dependent on the menu you are in. The standard toolbar contains the buttons for performing common actions in the system. The application toolbar changes based on the screen you are on. The status bar identifies the system and displays messages. You can go directly to a transaction by typing its transaction code in the command field.  When on a screen, you can find out what its transaction code is by choosing System -> Status.

The R/3 Menu Accounting Financial acctg.

... ... ...

...

2

Accts. rec.

... ...

1

Master data Create

... ... ...

Customer Company code

General data

3

Address Control Payment transactions R

 SAP AG

The R/3 System has the following hierarchy:  Main menu level  Application level  Task level
When you log on to the SAP R/3 System, the R/3 standard menu is displayed. From here, you can select the individual applications.  Open a pull-down menu with the application menu by clicking on it.  Menu options with an arrow have a sub-menu.
To branch to the menu level of the application, click on a menu option or choose sub-menus in the R/3 standard menu. You will find tasks on this menu level (for example: Create master data).
Click on the required task to branch to the initial screen for selecting your task objects.


Working in Several Sessions Session Session 22

Session 1

Session Session 33 Cost center Cost acctg. Valid from

Session 6

Descriptions Name

Exec.Board

Description

Executive Board cost center

Long text

X

Session 4

Session 5 R

 SAP AG










You can process several tasks in parallel by opening several sessions.  From the menu, choose System -> Create session.  The system opens a new window, in which you can process a new task independent of the first window. Up to six sessions can be opened within a user logon. To activate a session placed in the background, click on it with the mouse. You can move the individual session windows on the screen by dragging. Be aware that you lock objects to other users when they are open. You can lock out others unnecessarily when working with numerous sessions.

The Icon Bar in the R/3 System Enter

Execute

Save

Find

Back

Sort

Exit

Print

Cancel

Change ↔ Display

Help

?

Page

R

 SAP AG















The ENTER button moves you on to the next screen or window. It is the same as the Enter key. The SAVE button stores your work in the database. The BACK button returns to the previous screen without saving. The EXIT button leaves the current application, either to the previous application or to the main menu. The CANCEL button exits the current task without saving. The HELP button takes you to online help. The EXECUTE button begins a system activity. The FIND button performs a search for data that you need on the screen you are currently working on. The SORT buttons rearrange the data alphabetically by the highlighted column. The PRINT button prints data from the screen on which you are currently working. The CHANGE DISPLAY button allows you to change from display mode to change mode and vice versa. The PAGE buttons move you to the next or previous page, or the first or last page. For an overview of which function keys are active, press the right mouse button.

User Profiles

 Defaults: allows you to specify your preferred printer and date and number formats

Tools

?

 

Hold data Set data Delete data Application values Own data Favorite maint.

System

   Create  session 



 Address: enables you to set your communication information

Information systems

 

 Own data: allows you to change your address, defaults, and parameters

End session User profile Services Utilities List Object services Own spool requests Own jobs Short message Status... Log off

 Parameters: allows you to set default values in frequently used fields R

 SAP AG

The purpose of own data settings:  User defaults change the default printer and date display.  User parameters allow the user to default information into frequently used fields  User address is customizable with your address, phone number, and other information.
You can choose settings that will expedite work; for example, change the default setting to specify the printer closest to your desk.
You can choose the date and number formats to those you prefer.


Case Company

R

 SAP AG

Case Company: Contents  Presentation  Motorsports International - the case company  SAP R/3 organizational elements

R

 SAP AG

Case Company: Unit Objectives  At the conclusion of this unit, you will be

able to:
Describe the background and product line of

Motor Sports International (MSI)
Define SAP R/3 organizational elements
Define the organizational elements at MSI

R

 SAP AG

Case Company: Motor Sports International

Sales

Plant Retail dealers

Plant

R

 SAP AG









Motor Sports International (MSI) has one sales organization responsible for negotiating sales and distributing products. MSI sells two product lines: Motorcycles and related components Accessories MSI distributes products through retail motorcycle dealers. Two plants serve the sales organization. One plant services and manufactures products; the other plant is a distribution center.

Case Company: Definition  Organizational elements are structures that represent the legal and / or organizational views of an enterprise  You can design your company structure based on your business processes  The organizational elements form a framework that supports all business activities.

R

 SAP AG

Organizational elements serve four key purposes: Reporting: Organizational elements give you the ability to map the legal (or external) and organizational (or internal) structure of your enterprise to the R/3 System. Modeling: You can represent your business in the R/3 System. Transaction control Master data defaults
”Organizational element” is an R/3 term.


Case Company: Organizational Elements MSI uses the following Organizational Elements in Customer Order Management:


Company code




Sales area consisting of:

  

Sales organization Distribution channel Division




Plant




Storage location




Shipping point




Warehouse number R

 SAP AG




This is not a complete list of all organizational elements available in the R/3 System. These R/3 organizational elements are required in the Customer Order Management cycle at MSI.

Company Code  A company code represents an independent accounting unit, for example, a company within a corporate group.  Balance sheets and Profit & Loss Statements, required by law, are created at the company code level.

Company Code  SAP AG 1999












Organizational elements are structures that represent the legal and/or organizational views of an enterprise. You can design your company structure based on your business processes and reporting requirements. The organizational elements form a framework that supports all business activities. Organizational Elements: Chart of Accounts - contains all account numbers and some general control data. Company code - represents an independent balancing/legal accounting entity. Each company code is assigned to one Chart of Accounts. Group company - the legal unit of consolidation to which company codes are assigned. Business area - represent separate areas of operation within an organization. They can be crosscompany codes or within the same company code.

Sales Organization

 A sales organization:


Is responsible for distributing goods and services.




Is responsible for negotiating sales conditions.




Carries out each business transaction.

 Each sales organization is assigned to a company code.

 SAP AG 1999

You represent organizational structures in sales and distribution using sales organizations. Each sales organization represents a selling unit from a legal standpoint. It is, for example, responsible for product liability and other customer rights of recourse. Using sales organizations, you could, for example, subdivide markets into regions. Each business transaction is processed within a sales organization.
A sales organization is assigned to exactly one company code.


Distribution Channels  Distribution channels are the means through which sales materials reach the customer.  Distribution channels include:


Retail trade




Wholesale trade




Direct sales

Sales organization

Distribution channels Wholesale trade

Wholesale distributor

Retail trade

Direct sales

Retail dealer

 SAP AG 1999

You can use different distribution channels in sales and distribution in order to provide the market with the best possible service. Wholesale trade, sales to industrial customers or direct sales from a plant are typical examples of distribution channels.
A distribution channel can be set up according to market strategy or for reasons of internal organization.
Within a single sales organization, you can supply a customer through several distribution channels. In addition, you can vary the material master data relevant for sales, such as prices, minimum order quantity, minimum delivery quantity or delivering plant, for each sales organization and distribution channel.


Division

 Product divisions in Sales and Distribution, such as: Motorcycles and accessories Sales Organization

Division

Division

Motorcycles

Accessories

 SAP AG 1999

 Division
You can set up a division-specific sales organization in the R/3 System. For an extensive range of products, you can create product groups or divisions.
For each division you can define customer-specific agreements on partial deliveries, pricing and terms of payment, for example. Within a division you can perform statistical evaluations or establish your own marketing strategy.

Sales Area





A sales area is the combination of:


Sales organization




Distribution channel




Division (product-related)

The sales area is used for reporting and pricing. Sales Org 1

Sales Organization

Distribution Channel

Division

Distribution Channel 1

Division 1

Division 2

Sales Org 2

Distribution Channel 2

Division 1

Distribution Channel 1

Division 1

Division 2

Consulting tip: A simple organizational structure is better than a complex one, as it simplifies the order entry process, for example. Consider Consider using fields on the master data screen for detailed reporting.  SAP AG 1999

A sales area is a combination of sales organization, distribution channel, and division. Using the sales area, you can determine which materials in a division can be sold through a distribution channel.
You can carry out analyses within a sales area, for example an analysis of sales in a sales area. All data relevant for sales can be defined for each sales area. For instance, you can define a customerspecific price agreement for each sales area.



Plant

 A plant is an organizational element within a company. A plant produces goods, renders services, or makes goods available for distribution.  A plant can be one of the following types of locations:


Manufacturing facility




Warehouse distribution center

 SAP AG 1999

Materials management is primarily concerned with the material flow within a company. Production facilities and locations where stock is kept must therefore be defined in the system. The terms used in the system for these entities are plant and storage location.
A plant can either be a location for production and material requirements planning (MRP) or it may simply represent one or more material stock locations (storage locations) in close proximity to one another.
Each plant is assigned to a unique company code.


Purchasing Organization and Purchasing Group Client

Company Company Code Code Purchasing Purchasing Group Group Purchasing Purchasing Organization Organization

Purchasing Purchasing EinkaufsEinkaufs Einkaufs-Organization Organization

Plant Plant

Plant Plant

 SAP AG 1999










 Purchasing Organization and Purchasing Group A purchasing organization is an organizational unit that procures materials or services for one or more plants and negotiates conditions of purchase with vendors. The purchasing group is legally responsible, from an external viewpoint, for all purchasing transactions. The purchasing organization is subdivided into purchasing groups that are responsible for operational activities. The purchasing group subdivides the purchasing organization into groups responsible for operational activities. A purchasing group can be responsible for several purchasing organizations. A purchasing organization may or may not be assigned to a company code. If you do not assign your purchasing organizations to company codes, the purchasing organizations are authorized to procure materials or services for every company code. As a prerequisite for this, the plant for which materials or services are procured must be assigned to the purchasing organization. You then need to maintain the company code assignment when you create the purchasing document.

Case Company: Plant/Storage Location and Warehouse Number Plant

1000 1000

Storage locations

0001 0001

Warehouse number 001

0002 0002

R

 SAP AG

A warehouse is a physical location within a plant that has inventory. Each combination of plant and storage location is assigned to a warehouse number. Several storage locations within a plant can refer to the same warehouse number (i.e., a warehouse number can support, or be associated with, more than one storage location).
The relationship between a plant/storage location combination and a warehouse number is a means of structuring the warehouse complex.




Case Company: Description  Defining your organizational structure in SAP R/3 is an important step. It requires thorough analysis of how your organization wants to run your business. MSI’s organizational structure is used for illustration purposes only.  The Enterprise Design Team has mapped MSI’s German and United States organizations to the SAP R/3 organizational elements used in Customer Order Management:

 SAP AG




Company code




Sales area (Sales organization, Distribution channel, and Division)




Plant and Storage location




Shipping point




Warehouse number

R

Case Company: MSI Company Code

MSI has a German and a USA company code to keep two balanced sets of financial books.

MSI’s company codes: 1000 Germany 3000 United States R

 SAP AG

Case Company: MSI Sales Area MSI’s sales area structure is as follows:

Sales Organization Distribution Channel

Division

1000 Germany

3000 USA

12 Resale

12 Resale

00 Crossdivision

00 Crossdivision

R

 SAP AG

Case Company: MSI Sales Organization MSI has a different sales organization for Germany and the USA. Each sales organization is responsible for sales in its country and sets its own distribution and pricing policies. A A A

Sales organization 1000 - Germany

A A A

Sales organization 3000 - United States R

 SAP AG

Case Company: MSI Distribution Channels MSI distributes its products in Germany and the USA by means of resale distribution channel. Sales Organization

Sales Organization

Germany 1000

USA 3000

Distribution Channel

Distribution Channel

Resale 12

Resale 12

00 Crossdivision

00 Crossdivision R

 SAP AG

Case Company: MSI Division  MSI has one divisions: cross-division that includes motorcycles and accessories

Germany 1000

USA 3000

Resale 12

Resale 12

Division

Division

00 Crossdivision

00 Crossdivision R

 SAP AG

Case Company: MSI Plant 

In Germany, MSI has two plants that service the German sales organization.



Most of MSI’s products are manufactured and stored in plant 1000. Plant 1400 is available to meet demand for product in that region and serves other regions when needed.



In the USA, MSI has two plants that service the United States sales organization: plant 3000, New York, and plant 3400, Seattle.

Plant 1000 Hamburg

Plant 1400 Stuttgart R

 SAP AG

Case Company: MSI Shipping Point MSI has one shipping point for each plant location in Germany, shipping point 1000 for Hamburg and shipping point 1400 for Stuttgart. MSI has one shipping point for each plant location in the USA, shipping point 3000 for New York and shipping point 3400 for Seattle. Plant 1000

 SAP AG

Plant 1400

Hamburg

Stuttgart

Shipping Point

Shipping Point

1000 Hamburg

1400 Stuttgart

R

Case Company: Conclusion Organizational Elements  The business unit responsible for distributing goods and

services and negotiating sales conditions is represented by a Sales Organization.  The means through which a product gets to market is the

Distribution channel.  The product line itself is represented by the Division in R/3.  A combination of the last three is called a Sales Area and is

primarily used for reporting and pricing.  A Shipping Point is used to represent the organizational

element that controls your shipping activities.

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 SAP AG

Order Management

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Order Management: Contents

 Sales Order Processing  Delivery  Billing

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 SAP AG

Order Management: Unit Objectives  At the completion of this unit, you should be able to:
explain the process chain of a standard order in

customer order management.
create a simple sales order.
create a delivery with reference to a sales order.
create a transfer order with reference to a delivery.
invoice a customer for the delivery.
find a sales order, a delivery, and an invoice in the

R/3 System

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 SAP AG

Master Data: Business Processes in COM Cycle

Sales Sales Order Order Processing Processing Inventory Inventory Sourcing Sourcing Pre-Sales Pre-Sales Activities Activities

Invoice

Delivery Delivery

Payment Payment Billing Billing

R

 SAP AG




Each process within the Customer Order Management cycle will take advantage of the master data elements you will be introduced in this unit.

Order Management: Pre-Sales Activities

Pre-Sales activities may include:


Mailing lists




Phone call records kept on the R/3 System




Inquiries




Quotations

 SAP AG 1999

Order cycles sometimes begin with a sales query such as an inquiry or request for quotation. Sales queries help you enter and store important, sales-related information you can use later during order processing.
Use this pre-sales information to plan sales strategies or help build a long-term relationship with the customer.
Using sales queries provide data that can have great value for you later, particularly when: tracking lost sales recording pre-sales data to help negotiate large contracts selling to large organizations that must require documentation of the entire process
Any one of the activities listed above can begin the sales process.


Order Management: Sales Order Processing  Customers place orders with a customer service representative.  Standard orders normally contain:


Customer and material information




Pricing conditions for each item




Schedule lines and delivery information




Billing information

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 SAP AG

A sales order is an electronic document that captures and records your customer's request for goods or services.
The sales order contains all pertinent information to process the customer's request throughout the Customer Order Management cycle.
Sales and Distribution automatically proposes appropriate existing data from relevant master records in order to minimize errors and redundant effort in order processing.
You can enter a sales order with many items in a single screen, or place a complex order using an expanded order view.


Order Management: Inventory Sourcing  Inventory Sourcing (Make/Buy) determines:


If the product is available (availability check)




How the product will be supplied:

 

From stock on hand

  

Make-to-order production

By replenishment activities (production order, purchase order) Shipped from an external supplier Shipped from another warehouse

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 SAP AG

Delivery Warehouse Sales order

Delivery

• Create delivery

• Picking

• Packing

.......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .... ... .... .. .. .. . ... .... ... .... ... .... ...

• Shipping papers

• Goods issue

• Update stock • Post general ledger

 SAP AG











Within the delivery process the following steps are executed either automatically or manually in the SAP R/3 System: Create the Delivery note, i.e. packing slip. A delivery note is a notification in the system that the delivery process has begun. Pick the items. Update the delivery note with the picked quantities. This could be a point of integration to the Warehouse Management System. Post Goods Issue. This step confirms that the goods have left the warehouse. It automatically updates inventory balances and makes the appropriate entries in the general ledger. This is a good example of where processing in SD integrates into FI and MM. Packing functionality is available but not required. This step occurs within the delivery note. At each of the stages in the delivery process, it is possible to display deliveries “in progress.” This allows a particular delivery to be monitored, or for work lists to be generated to show those deliveries that need to move on to the next stage of processing.

Order Management: Billing

 Billing supports:


Creating invoices for deliveries and services




Creating credit and debit memos on the basis of requests




Canceling business transactions




Transferring billing data to financial accounting Invoice

R

 SAP AG

Creating a billing document includes copying information from the sales order and the delivery document onto the billing document.
The billing document serves several important functions: The billing document is the electronic means to help you prepare invoices, which are considered output of Billing. The billing document serves as a source to Financial Accounting (FI) to help you in the monitoring and management of customer payment.
When you create a billing document, you see the automatic update to the general ledger. R/3 affects the general ledger by debiting the customer's Accounts Receivable account and crediting the Revenue account.


Order Management: Payment  Final step of the COM cycle  Customer Payment includes:


Posting payments against invoices




Reconciling differences, if necessary

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 SAP AG




When you post a customer payment, you see the automatic update to the general ledger. R/3 affects the general ledger by debiting the Cash account and crediting the customer's Accounts Receivable account.

Business Process Summary S A L E S

PrePre-Sales

I N F O R M A T I O N

Sales Order Processing

S Y S T E M

 SAP AG

Contact Contact Inquiry Inquiry Contract Contract

Quotation Quotation

Scheduling Scheduling agreement agreement

Order Order

Inventory Sourcing Delivery/ Transportation

Delivery Delivery

Picking Picking

Goods Goods Issue Issue

Shipment Shipment

Billing

Invoice Invoice

Customer payment/ Financial Accounting Accounts Accounts Receivable Receivable

M A T E R I A L S

Material MaterialStock Stock Account Account

M A N A G E M E N T

Order Management: Types of Sales Documents

Standard order Credit/debit memo request

Scheduling agreement

Sales document types

Consignment order

Return

Free of charge delivery

Cash order

Rush order

Each type of sales document represents a different type of sales transaction. R

 SAP AG

Different sales transactions have different business requirements. For example: A standard sales order requires pricing and delivery. A free-of-charge delivery does not require pricing (it's free), but requires delivery (the customers are expecting a shipment of goods to their sites). A credit memo request requires pricing does not require delivery (the customers are not looking for a shipment of goods to their sites).
Different business requirements lead to different system requirements.
R/3 provides many different sales document types as templates that you can configure to reflect your business requirements.



Order Management: Overviews in Sales Order Create Standard Order: Overview

Standard order

67253 67253

Sold-to party

C1

Ship-to party

S1

Sales

Item overview

X

Net value

920 UNI

Ordering ProcurementShipping Reason for rejection

Req. delivery date Sales area Item 10

Material M1

Order quantity 10

SU

...

PC

...

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 SAP AG













You can process the sales documents in different views which contain individual data grouped together according to topic. The tab pages enable you to switch between the different views easily and quickly. The top half of the screen with general data remains displayed. You can reach the individual views from three different screens: The overview screen contains the tab pages for sales, item overview, ordering party, procurement, shipping and reason for rejection. The header screen contains the tab pages for sales, shipping, billing, payment cards, billing plans, accounting, pricing, account assignment, partners, texts, purchase order data, status, additional data A and B. The item screen contains the tab pages for sales A and B, shipping, billing, country, pricing, account assignment, schedule lines, partners, texts, purchase order data, structure, additional data A and B The additional data B view is empty and can be configured as you wish (user exit). You can also use the menu to switch between the different views.

Order Management: Sales Document Structure Header Item 1 Schedule line 1 Item 2

Sales documents contain information that is logically organized.


The header contains customerrelated data for the entire order.




Items contain data about the material and quantities ordered.




Schedule lines store delivery information like delivery quantity and date.

Schedule line 1 Schedule line 2 R

 SAP AG

Order Management: General Concepts  The Stock Overview displays detailed stock information for each material by company, plant, storage location, and batch.  Stock overview screen depicts the inventory for each stock type. Basic stock type examples:


Unrestricted use




Quality inspection




Reserved

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 SAP AG

Order Management: Stock Overview Screen Stock Overview: Company Code/Plant/Storage Location/Batch List Edit Goto Extras Environment System Help

Breakdown next level

Material Material type Unit of measure

M20 HAWA PC

New Selection

20/Headlight Trading goods Base unit of measure PC

Unrestricted use

Qual. inspection

Total

999.999,00

0,00

0,00

1000 SAP A.G.

999.999,00

0,00

0,00

1000 Plant 0001 Storage Location

999.999,00 999.999,00

0,00 0,00

0,00 0,00

Cl/CC/Plant/Sloc/Batch D

Reserved

To see other information such as quantities scheduled for delivery and allocated to sales orders:


Click on the Left or Right columns icons to reveal columns that do not fit on this display.




Double-click on any organizational level to display stock types and quantities for that organizational level. R

 SAP AG

Creating Deliveries Sales Order 1 Customer 1

Sales Order 2 Customer 1

Sales Order 3 Customer 2

Shipping point Delivery date Customer

Delivery

Delivery




The delivery is used to initiate all activities relevant to shipping, such as picking, packing, and transportation.




A delivery is created for a shipping point for an order that is due for delivery. The system copies the relevant data from the order. R

 SAP AG

The creation of the delivery is the first step in the shipping process. When a sales order is captured by the sales order department, a requested delivery date is entered on the sales order.
The materials are sourced in the system, and the system will confirm a “first date” by when the materials could be delivered.



Order Management: Creating Transfer Orders LF 4711

LF 4720 Ref. No. 329 LF LF ... ...

4720 4915

Start processing

Selection for multiple LF 4793 processing + assignment of ref. no. LF 4812

Picking list Ref. no. 329

TO LF4720

TO LF4915

Automatic or manual request

Bin

Material PC

FIX-1

M-03 M-04

3 5

FIX-2

R-11 R-23

2 11

LF 4915 R

 SAP AG

A transfer order can be created for a single delivery. The R/3 System can combine multiple deliveries onto a single transfer order if the deliveries share some characteristics. For example: Warehouse number Shipping point Picking date
A transfer order is created for a warehouse number for a delivery that is due for picking. The R/3 System copies the relevant data from the delivery.
In order to optimize picking, you can create a picking list which includes all deliveries. Depending on the settings you make in Customizing, the list is sorted by storage bin and material which considerably facilitates the work of the picker.
The R/3 System can create transfer orders either on-line or as a background job to be executed during off-peak hours.



Order Management: Effects of Goods Issue Posting  Goods issue:
Reduces warehouse stock A A A

Goods issue

Delivery C1 M1 Sales price Cost price Req.

Material M1 Valuated stock

Quotation

Factory Overhead of Production

Sls.order

X

Billing due list  SAP AG

100 PC 25 UNI 12 UNI


Posts the value change to the stock accounts in inventory accounting
Reduces delivery requirements
Updates the document flow for sales and delivery documents
Creates a work list for billing

Stock X R

Creating Invoices Delivery 1

Delivery 2

Delivery 3

Customer 1

Customer 1

Customer 2

Invoice

Customer Billing date Destination country

Invoice

Invoices can be grouped together using selection criteria, such as customer, billing date, and destination country. R

 SAP AG

Order Management: Structure of the Billing Document



Header

 SAP AG 1999

Billing documents are similar to sales documents in their structure.

Item 1




The header contains information for the entire invoice.

Item 2




Line items contain information about the material being invoiced.

Effects of Billing Document Creation When an billing document is created: bill. doc. Customer‘ credit account

100

Receivable. X

Sales Information System

Financial statement


accounting documents are created automatically, and G/L accounts are updated
document flow and the status are updated in all associated sales and delivery documents

90 80 70 60 50 40 30 20

Delivery

10 0 1

2

3

4

5

6

Order


the customer‘s credit management account is updated
the statistics for the sales information system are updated
controlling elements like the financial statements and profit center billing document are updated R

 SAP AG

Logistics: Parallel and Follow-Up Activities

Procurement

Production

Sales

Service R

 SAP AG

Case Company: Summary  The customer order management cycle can begin with pre-

sales activities including inquiries and quotations, followed up with sales orders, deliveries, billings and ending with customer payment. (we will not be covering the latter in this course)  Each of these different business transactions that make up

this cycle is represented by a document in R/3. There are many different types of sales documents including standard orders, returns, cash orders, etc.  The sales document is made up of a header, item and

schedule line level. The Billing document has only header and item levels.  A tool you can use to verify document status and show the

chain of inter-related documents for a transaction is Document Flow.

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 SAP AG

Master Data

R

 SAP AG

database ( example customers suppliers materials accounts). (cross-application). order -Example deliveryinvoice function units modules -Example data units: code organization channel -division




Master data refers to data records held for a long period of time in the




Master data is stored on a central sy stem

.

For

,

: The customer master data -




Master data has an organizational




Master data may be used across

. It is as signed to organizational

-sales

-distribu tion

,

,

, pay ment and so on could be used in o ne customer

.

: Customer master data share the sales and distribu tion and financial accounting

-company

,

. One cus tomer master record may be assigned to the follow ing organ izational

,

.

Master Data: Contents  Creating master data, including customer, material, pricing and customer-material information record  Creating sales transactions within the Customer Order Management cycle

R

 SAP AG

Master Data: Unit Objectives  At the conclusion of this unit, you will be

able to:
Create a customer master record
Create a material master record and input a

selling price
Stock inventory for a material
Create a customer-material info record
Explain the effects of master data on the

Customer Order Management cycle

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 SAP AG

Master Data: Origins of Data in Sales Documents

Customer master data

Sales order

Material master data

Conditions

.....

Control tables R

 SAP AG




There are several sources of data that can be copied into a sales order. These sources of data include, but are not limited to:  Customer master  Material master  Condition records. Pricing records. Examples: customer discount or freight charge.  Previous sales documents. A sales document can serve as a source of data for another sales document. Example: quotation.  Control tables. These tables are created and maintained in Configuration. For example, the R/3 System uses control tables to determine the shipping point and route.

Master Data: Customer Master Data Master Data contains the records that remain in the database over an extended period of time.

Customer Master Data Accounting Data (unique to company code)

Master Data is centrally stored (shared across application modules) and processed to eliminate data redundancy.

General Data (common within a client)

Sales Data (unique to sales area)

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 SAP AG

The customer master includes all data necessary for processing orders, deliveries, invoices, and customer payments.
Customer master information is shared between the accounting and sales and distribution departments.
The customer master groups data into categories: general data, company code data, and sales and distribution data.


Master Data: Customer Master Views Customer : Sales organization Distribution channel Division :

Create: Screen Views:

Create:

K1 : 1000 : 12 00

General data Address Control data Marketing Unloading points Contact person

Valid Valid for for both both accounting accounting and and sales sales

Sales area data Valid Valid for for Sales/Distribution Sales/Distribution

Screen Views:

Sales Shipping Billing Partner functions

Dependent Dependent on: on: --sales sales organization organization --distribution distribution channel channel --division division

Create centrally: Company code data Screen Views:

Account Management Payment transactions Correspondence Insurance

Valid Valid for for Accounting Accounting Dependent Dependent on: on: -company -company code code

R

 SAP AG

The customer master record is comprised of more than 10 screens. These screens have been grouped according to the three categories:  General data: the screens relevant to both Financial Accounting and Sales and Distribution  Sales area data: the screens relevant to Sales and Distribution  Company code data: the screens relevant to Financial Accounting
You can centrally create, change, or display General data, Sales area data, and Company code data.
You can simply create, change, or display only General data and Sales area data.
Customer master records are created within the context of organizational elements. This allows you to have different master data defaults when your customer orders through different sales areas.


Master Data: A Business Partner Can Be... Sold-to party* Ship-to party*

.....

Personnel

Forwarding Agent

Partner functions

Contact person

Payer*

Bill-to party*

*mandatory R

 SAP AG

Business partner is an SAP term. A business partner is a person or an organization with whom you have business relationship.
Partner function is a SAP term. A partner function describes the relationship you have with that partner. Examples include:  Contact person  Personnel  Vendor  Customer
In creating customer master records, you must create a sold-to customer master record. When you create this mandatory business partner, R/3 assumes that all four partners are the same; you can over-ride these defaults if this is not the case.


Master Data: Business Partners Ship-to party Sold-to party Customer Master

Payer Bill-to party R

 SAP AG

Business partners is a SAP term that describes the relationship (or relationships) that you have with your customer. The following four are mandatory in an order:  Sold-to party: The business partner who places the order with you. You could think of the sold-to party as a buyer, at your customer‘s site, who has the authority to order goods or services from you.  Ship-to party: The business partner who receives the goods or services.  Bill-to party: The business partner who receives and verifies the invoices that you send for goods or services rendered.  Payer: The business partner who pays you for goods or services rendered.
Different business partners allow you to record information, specific to the business partner. For example: the sold-to party may not be open for business on Saturday, but the ship-to party is.




Master Data: Business Partners in the Sales Order 

A business partner is an external or internal address that is involved in a business transaction.



For example, the customer orders goods from a central purchasing organization and requests that products and their quantities be shipped to different locations.



Each shipping location is a separate ship-to master record in the R/3 System.

Retail dealer

Retail dealer R

Store #1 - California  SAP AG

Store #2 - Colorado

Master Data: Customer Account Groups Create sold-to party Customer

: C1

Sales organization

: 0001

Distribution channel

: 01

Division

: 01

Account group

: 0001

ACCOUNT GROUP 0001 Field selection Number assignment One-time account: Yes/No Output proposal

ACCOUNT GROUP 0001 Sold-to party 0002 Ship-to party 0003 Payer 0004 Bill-to party

R

 SAP AG

The account group is the template for creating customer master records. The account group designation (0001, 0002, 0003, etc.) controls what views and data fields R/3 presents to you.
The account group specifies:  The data fields in the master record that are suppressed, displayed, required, or optional  The number range for the customer master of the sold-to, ship-to, etc.  Variety of other controls.
As an example:  A ship-to customer master record (created by using account group 0002) contains certain views and data fields. This record requires information relevant to shipping. It would suppress any fields relevant to billing.
Account groups are delivered as part of the standard system. You can create additional account groups, if needed.



Master Data: Creating a Sold-to Party Customer Create: Initial Screen Customer Edit Goto Extras Environment

x System

Help

? Sales areas

Sales areas/customer

Customer 1000 Company code 1000 Sales organization Distribution channel 12 00 Division 0001 Account group

SAP A.G. Sales Org.1000 Distribtn Channel 12 Product Division 00

Reference Customer Company code Sales organization Distribution channel Reference division

R

 SAP AG

Master Data: Partner Functions Customer Change: Partner Functions Sales area Customer Edit Goto Extras Environment System

x Help

? Partners

Administrative data

Customer Sales org. Distr. channel Division Partner funtion Sold-to party Bill-to party Payer Ship-to party

Joseph H. Gruis 12320 1000 Sales Org.1000 Distribtn Channel 12 12 00 Product Division 00 Number 12320 45620 12320 12320

Name

Norwood

PDsc

D

Joseph H. Gruis Joann Havlac Joseph H. Gruis Joseph H. Gruis

Page 1 of 1 R

 SAP AG

Master Data: Material Master  The material master contains all data required to define and manage material. It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting, and other departments.  The material master is used as a source of data for sales order processing throughout the customer order management cycle.

Basic data Purchasing data Accounting data Sales data Manufacturing data (etc.)

R

 SAP AG




Similar to the customer master, the information contained within the material master is presented through a number of screens. Each screen (or group of screens) contains information relevant to a particular department or business function.

Master Data - Multiple Views All master data is segmented by business function.


Each area views only the data relevant to its function and authorization level.




Some data may be independent of the view; for example, material description, base unit of measure, etc.

Material Master Examples: Views:

Basic Data

Sales

Accounting

Data Fields:

Description

Min. order qty

Price control

Unit of Measure

Material group

Valuation class R

 SAP AG

Material master records are shared by different sales organizations and distribution channels, and different plants.
When displaying, changing, or creating a material master record, you must specify the organizational element for which you want to display, change, or create a view.


Master Data: Materials - Material Types A Material

 Description  Department Matl. type

 Internal/External orders

Account assignment

Quantity/Value update Price control R

Variance for each plant  SAP AG

Similar to the account group, the material type is the template for material master records. The material type designation controls what views and data fields the R/3 System presents to you. For example: If you buy and consume a material (as in the case of the material type raw material), why be presented with the Sales views? You never sell this material.
The material type specifies:  The views that are available when creating materials using this material type  The default item category group for materials assigned to this material type  The types of purchase orders available (called internal/external orders in the illustration above)  The default costing method (called price control in the illustration above)  How you control quantity and value updates of your stock (at company level for all plants), at the plant level, or not at all  And a variety of other controls, as well.
Examples of material types, include but are not limited to, DIEN (services), FERT (finished products), HAWA (trading goods), ROH (raw material), and VERP (packaging).






Master Data: Pricing Condition Records Condition Record Qty

Price

1-5

5550

6-10

5500

11-20

4850

 A price is represented by a value.  Objects in the R/3 System that require a value are:


Product prices




Customer discounts




Freight charges

 The pricing condition record links the value with the object. R

 SAP AG

Master Data: Customer-Material Info Record  To create a Customer-Material Info Record, use the SD (Sales and Distribution) Master Data screen.  From the SD Master Data screen, create an agreement, specifically a Customer-Material Information agreement.  Specify a unique combination of the customer, the sales organization, and the distribution channel.  With this info record, you can specify the customer’s material number, the customer’s description, the plant from which this material should be sourced, and a variety of other controls. R

 SAP AG

Master Data: Using Ordering Party Overview Create Standard Order: Overview Sales document Edit Goto Extras

x Environment

System

Help

? Sold-to party Standard Order Sold-to party Ship-to party PO number Sales

7500 UNI

Net value 12320 12320 PO - 1989

Item Overview

Reg.deliv.date Pricing date POitem

Orders

D

Joseph H. Gruis, Norwood, 470 Washington Street, Suite 100, US Joseph H. Gruis, Norwood, 470 Washington Street, Suite 100, US PO date

Ordering party

Procurement

06.03.98 25.02.98

Customer material Headlight

Shipping

Reason for Rejection

Deliver.plant

All items Item Order quantity 10 10

SU

Material M20

Description Smashing Headlight

R

Availability

 SAP AG

Conditions

Sched. lines

Config.

Master Data: Summary  Customer, material, and pricing master records are used to

store data that are proposed in the sales order.  The customer master includes all data necessary for

processing orders, deliveries, and invoices in the system and is grouped into 3 categories of data: General, Company code, and Sales and Distribution data.  The material master stores information about the material

being processed in the document such as its’ weight, cost, etc. It is divided up into many categories of data such as engineering, manufacturing, sales and distribution, purchasing, accounting, etc.  Pricing in the document comes from pricing condition

records such as customer prices, discounts, freight, charges, etc.  The customer-material info record contains information for a

specific customer and material such as the customer’s own part numbers and descriptions and different partial delivery agreements by material. R

 SAP AG

Stock Available

R

 SAP AG

Stock Available: Contents

 Sales Order Processing  Inventory Sourcing

 SAP AG 1999

Stock Available: Unit Objectives

 At the conclusion of this unit, you will be able to:
Demonstrate the effects of customer, material, and

pricing master data on Customer Order Management.
Specify times the R/3 System uses to calculate

delivery dates for each item.
Describe the role of the incompletion log for sales

orders.

 SAP AG 1999

Stock Available: Master Data in Sales & Distribution

 These three kinds of master data are critical to sales order processing:


Customer




Material




Pricing

 SAP AG 1999

Prices, Discounts, and Surcharges Conditions

Prices Price Price list list Material Material price price Customer-specific Customer-specific

Other Other







Discounts/surcharges

Customer Customer

Material Material

Price Price group group

Material Material pricing pricing group group

Customer/Material Customer/Material pricing pricing group group

Customer/Material Customer/Material

Others Others

Pricing is carried out automatically based on predefined prices, discounts, and surcharges. R

 SAP AG

Stock Available: What is a Shipping Point? (1)  The shipping point represents the highest organizational level for shipping.  A shipping point can be a:


Location where the deliveries are processed.




Group of employees who process the deliveries.

 A delivery only leaves one shipping point.  The shipping point is defined at the line item level for the sales order.

R

 SAP AG

Stock Available: Shipping Point Determination Review Shipping conditions As soon as possible

Loading group

+

+ 1000

+

Lowest cost

Shipping point (proposal)

Plant

+

= =

1400

Hamburg

Alternate shipping points

1400

Stuttgart




The Shipping screen of the Customer master contains the shipping conditions (or how the customer requests that orders be delivered).




The Sales: General/Plant screen of the Material master contains the loading group (or how the product will be loaded for delivery).




The sales order contains the plant. R

 SAP AG

Stock Available: What is a Route?


Dortmund

Berlin

A route is the line of travel from a beginning point and an end point. The route may be composed of several legs.

Leg 2

Munich

Leg 1

= Connection points

R

 SAP AG

Stock Available: Route Determination Transportation zone of Shipping Point

Shipping conditions

+

As soon as possible

Transportation group

+

+ Hannover

Hamburg

Stuttgart

Transportation zone of Ship-to location

+

Lowest cost

+

+

=

Route

North-South truck route

= Regensburg

West-East truck route

 The Shipping screen of the Customer master contains the shipping conditions (or how the customer requests that orders be delivered).  The Sales: General/Plant screen of the Material master contains the transportation group (or the requirements for transporting the material).  The transportation zone of the ship-to party which is included as part of the customer’s address as general data, is stored on the Control data screen.  SAP AG 1999

Delivery Scheduling

1 Order date

Material availability

Transport scheduling

6 Loading

Goods issue Delivery date

 Delivery scheduling determines delivery dates based on several different lead times defined in the system including:





Material availability Transport scheduling Loading (includes picking and packing) Goods issue R

 SAP AG

Shortage: Material Availability

1

6

Material Order date availability

Transport planning

Loading

Goods issue

Delivery date

Materials Availability Date


By this date, there must be sufficient material available in an item for picking so that the delivery can be shipped.




The system calculates this date, working backwards from the customer‘s requested delivery date.




The system calculates the time required for picking, packing, loading and transporting the goods. R

 SAP AG

The system uses delivery scheduling to calculate the materials availability date. On this date, enough material has to be available in time for delivery to the customer for their requested delivery date.
The system runs the availability check in time for the materials availability date.


Transport Scheduling

1 Order date

Material availability

Transport scheduling

6 Loading

Goods issue Delivery date

Transport scheduling 

The date by which you must arrange transportation so that the delivery can reach the customer on time.



This date is calculated by the system based on predefined time estimates in the route.



For example, a delivery with a route of New York to Chicago will take less than a delivery using the same mode of transportation with the New York to Los Angeles route. R

 SAP AG

Loading Date

1 Order date

Material availability

Transport scheduling

6 Loading

Goods issue Delivery date

Loading date 

The date by which picking and packing must be completed so that goods are ready for loading and for the delivery to reach the customer on time.



Any special packaging material must also be ready on this date.



The date is calculated by the system using predefined time estimates influenced by the shipping point, route and loading group.



For example, a crane used as the loading group to load goods on a truck, may take longer than if a forklift were used. R

 SAP AG

Goods Issue Date

1 Order date

Material availability

Transport scheduling

6 Loading

Goods issue

Delivery date

Goods Issue date 

The date the goods must physically leave the shipping point to reach the customer on time.



“On time” refers to the date on which the customer requests delivery of the goods.



The date is calculated automatically by the system based on the requested delivery date, picking and packing time, loading time and transit time. R

 SAP AG

Stock Available: Backward Scheduling Order Date

Material Availability Date

Transportation Planning Date

Loading Date

Requested Delivery Date

Goods issue date

Transit time Loading time Pick, pack and stage time Transportation Lead time

The R/3 System uses the longer of these two times in calculating delivery scheduling.

Transport sched. 

Backward scheduling is used to determine the date on which the material must be available for the customer to receive the goods on time.



The R/3 System starts with the requested delivery date and counts backwards, taking into account the pick, pack, load, planning, and transport of goods.



If the material is available, you can meet the requested date.  SAP AG

R

Stock Available: Forward Scheduling

Order Date

Requested Delivery Date

New Material Availability Date

Confirmed Delivery Date

Transit time Loading time Pick, pack and stage Lead time Transport sched.

The The confirmed confirmed delivery delivery date date is is derived derived by by the the R/3 R/3 System System using using forward forward scheduling scheduling based based on on the the new new material material availability availability date. date.



If the material is not available on the availability date, the R/3 System attempts to determine a date when the material is available. This date is the new material availability date.



The R/3 System uses the new material availability date as a starting point for carrying out delivery scheduling again to determine a new delivery date.

 SAP AG 1999

Stock Available: Schedule Line Dates in Sales Order Change Standard Order 68: Item Data Sales document

Edit

Goto

Environment

System

Help

?? Schedule line number

10

Material

M20

Sales

Shipping

Sched.line cat.

1

Delivery date

Not mat. planning

Procurement 2

Material avail.date

CN

20Headlight

D 04.04.1998

EA

1 EA

Arrival time

00:00

01.04.1998

Matl staging tm.

15:37

Loading date

01.04.1998

Loading time

15:37

Goods issue date

01.04.1998

GI time

15:37

Transport.plan date

01.04.1998

Trans.plng time

15:37

Shipping point

0001

1 EA

Route Delivery block R

 SAP AG

Stock Available: Incompletion Log  Each type of sales document has fields that require data.  You can control how incomplete data affects further processing of the document.


For example, if the payment terms are missing, you can deliver the order, but you cannot invoice it.




Or, a missing purchase order number can be listed in the incompletion log without affecting further processing of the document. Where is the purchase order number?

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 SAP AG

Stock Available: Key Concepts (2)  If you attempt to save a document without the required information, the R/3 System will display the dialog box shown on the next slide.  You can save the document or process the data. The R/3 System will then take you to the fields missing the data.  If you choose to save without processing the data, the document is still considered incomplete.

R

 SAP AG

Stock Available: Processing the Incompletion Log Save incomplete document

Save

The document is still incomplete

Edit data Would you like to save the incoming document or process

When you save the order, this dialog box appears if required data is missing. Selecting Edit data displays the Incompletion log.

Cancel

Data on the header of this sales order is missing, the purchase order number.

the missing data?

Create Standard Order: Incompletion Log Sales document

Edit

Goto

System

Help

?? Complete data Sold-to party

61

Joseph H. Gruis

Standard Order Item

Missing data R

Purchase order no.

 SAP AG

Stock Available: Blocking Orders for Delivery

 Orders may be blocked for delivery based on a number of factors:


Customer request delayed delivery due to:

 

Problems on the customer’s receiving dock Inadequate storage space

 An entire order may be blocked at header level or simply blocked at an individual line item.  Create a delivery block by entering an approptiate delivery block reason code into the order.

 SAP AG 1999

Stock Available: Summary  A shipping point can be a location where deliveries are

processed or a group of employees who process the deliveries. A shipping point is determined in the order for each line item and takes into account the shipping conditions of the customer, the loading group of material, and the delivering plant.  The route represents the itinerary the deliveries will take from

the shipping point to the customer. The route is determined at the order time and is used in scheduling.  Delivery scheduling begins with the customer’s requested

delivery date and takes into consideration different lead times including transit time, loading time, pick/pack time, and transportation planning time.  The system always backwards schedules first and if the date the

system determines to check for material availability is in the past it will forward schedule.  Fields defined as required on the sales order and found to be

missing are captured into an Incompletion log and may affect further processing of the order. R

 SAP AG

Sales from Stock - Shortage

R

 SAP AG

Sales from Stock - Shortage: Table of Contents

 Sales order processing  Inventory sourcing  Delivery

R

 SAP AG

Sales from Stock - Shortage: Unit Objectives  At the conclusion of this unit, you will be able to:
Create sales orders for different stock situations
Process deliveries with partial delivery quantities

R

 SAP AG

Shortage: Requirements Processing Production Planning

Sales and Distribution

Materials Management

Requirements Purchasing

R

 SAP AG

Requirements processing in the way in which the sales and distribution (SD) and production departments communicate with each other.
Availability checks and requirements transfers are intrinsically linked.
The employee responsible for requirements planning receives information about sales orders in the system and the quantities that SD needs in order to deliver these orders. The material for the order can come from in-house production or external procurement.
If there is insufficient material available, automatic materials planning generates a purchase order.


Shortage: Scope of Availability Check Inward movement Stock

Purchase order

Other sales requirements

Purchase requisition

Planned order

Time Reservation

Outward movement


If the availability check is configured for the material and the transaction, it includes the scope of check defined by the availability check indicator in the material master.




The scope of the availability check includes inward and outward movements of stock. R

 SAP AG




In Customizing, you can configure which elements are included in an availability check, according to the transaction you are using. In this way, you define which types of stock (for example, safety, stock in transfer or stock in quality inspection), which inward movements (such as, purchase or production orders) and which outward movements (for example, sales orders, reservations from Materials Management) should be included in the check.

Shortage: Availability Check Indicator  The availability check indicator in the material master answers the following questions:


Does an availability check take place in the order?

 


Summarized Individual

Which inward and outward movements are considered?




If filled, an availability check can occur.

What type of requirements are posted to Inventory Management?

 


If blank, the availability check does not occur.

Sales requirements, reservations, purchase orders, etc.

Are replenishment lead times maintained?



Yes or No R

 SAP AG

Shortage: Scope of Availability Check Display Display “scope “scope of of check” check” view view Availability check

02

Checking rule

A

Stocks Incl.safety stock Incl.stock in transfer Incl.quality.insp.stock Incl.blocked stck W/o subcontracting Stock Stock categories categories considered considered during during the the availability availability check, e.g. could include safety stock check, e.g. could include safety stock and and stock stock held held for for quality quality inspection. inspection.

Replenishment lead time X Check without RLT Determines Determines ifif replenishment replenishment lead lead time time for for materials procured externally is included materials procured externally is included in in the the availability check. availability check.  SAP AG

Inward Inward and and outward outward stock stock

Daily requirements movements movements considered considered during during availability check. availability check. SD order Receipts/Issues X X

X

X X

Incl. purchase orders Incl.production orders Incl.purch.requisitions Incl.dependent reqs Incl. reservations Incl.depen. reservat. Incl.sales reqmts Incl.delivery note Incl.ship.notificat.

Incl.planned orders Incl.rel.ord.reqmt

R

Shortage: Case 1: Total Order Quantity on Requested Delivery Date Inward movement

Material Availability date

Delivery date

Order quantity: 10

Warehouse stock

100

Purchase order

Purchase order

60

50

Time 40 Sales order

50 Sales order

100 Sales order R

Outward movement  SAP AG














Using delivery scheduling, the system checks whether the goods will be available for the material availability date. In the availability check, the system includes: Current stock Planned inward movements (such as purchase orders, purchase requisitions, planned orders) Forecast outward movements (such as existing sales orders, deliveries). In Case 1, the situation regarding outward movements is as follows: The existing inward movements are: Stock: 100 units Existing purchase orders for 50 and 60 units The following outward movements are also planned: Existing sales orders with 100, 40 and 50 units You now enter an additional order for 10 units. The system carries out delivery scheduling (backward scheduling) based on the customer‘s requested delivery date and determines the material availability date. It then runs an availability check for this date.

Shortage: Result for Case 1: Total Order Quantity for Requested Delivery Date Inward movement

Materials Availability

Delivery date

Order quantity: 10 100 60

50

10

Time 40

50

100 R

Outward movement  SAP AG




The availability check shows that the system can confirm the 10 units for the requested delivery date.

Shortage: Case 2: Total Order Quantity for a Later Date Inward movement

Material Availability date

Delivery date

Order quantity: 20 100 60

50

Time 40

50

100 R

Customer requires complete delivery

Outward movement  SAP AG










The original situation in Case 2 is the same as the first: The existing outward movements are: Stock: 100 units Existing purchase orders with quantities of 50 and 60 units The following future outward movements also exist: Existing sales orders with quantities of 100, 40 and 50 units. In this case, however, the customer requires a complete delivery You now enter an additional sales order with 20 units. The system carries out delivery scheduling (backward scheduling) based on the customer‘s requested delivery date and determines the material availability date and then runs an availability check for that date.

Shortage: Case 2: Total Order Quantity for a Later Date Inward movement

Materials Availability

Delivery date

Order quantity: 20 100 60

50

Time

20 40

50

100

Outward movement

Customer requires complete delivery

Materials Availability

R

Confirmation date

 SAP AG

In case of stock shortage, the system uses the availability check and delivery scheduling to determine the next possible date on which the goods can be confirmed for the customer.
Due to the complete delivery agreement, the quantities cannot be split up.
You have to confirm the 20 units for a later date.
Based on the materials availability date, the system uses delivery scheduling (forward scheduling) to calculate the confirmation date for the 20 units.


Shortage: Different Types of Order Fulfillment Complete delivery

Sales Sales order order

Delivery Delivery

Delivery Delivery Sales Sales order order

Partial deliveries

Delivery Delivery

Delivery Delivery

Sales Sales order order Delivery Delivery

Order combination Sales Sales order order

R

 SAP AG

Any agreements you made with the customer about deliveries also affect the result of the availability check.
For example, if the customer requires a complete delivery which means that all the items in the sales order should be delivered together. If the customer agrees to a partial delivery, you can fulfill the order using several deliveries.
Using the “Complete delivery”indicator, you can determine that all the items in a whole order must be delivered together. At item level, you can also decide whether you can split the delivery quantities.
The indicator for controlling complete/partial deliveries is proposed from the customer master record for header level and the customer-material information record for item level.


Shortages: Partial Deliveries Customer material info

Customer master

Order Header: Complete delivery :

_/X

Items: Partial delivery / Item: _ / A / B / C / D Max. partial deliveries: 1 - 9


You can find the indicators that control how complete or partial deliveries are processed in the Customer-Material Info record or the Customer Master record.




Once the indicators are set in the master data, they will appear as default values in the sales order.




You can change the indicators when sales orders are entered.

 SAP AG

R

Shortages: Partial Delivery Agreements

 Three indicators control how partial deliveries are processed. Customers can request:


Complete delivery (no partial deliveries accepted)




Partial deliveries and how each delivery should be processed if stock is not available by the requested delivery date




Partial deliveries with a maximum number of deliveries per line item

R

 SAP AG

Shortage: Case 3: Partial Deliveries Inward movement

Material Availability date

Delivery date

Order quantity: 20 100 60

50

Time 40

50

100

- Customer requires a delivery as soon as possible - Customer permits partial deliveries R

Outward movement  SAP AG











If the customer and type of sales document allow it, the required sales order quantity can also be split into several partial deliveries. The situation in Case 3 is the same as for 1 and 2: The existing outward movements are: Stock: 100 units Existing purchase orders with quantities of 50 and 60 units The following future outward movements also exist: Existing sales orders with quantities of 100, 40 and 50 units. In Case 3, however, the customer needs the goods as soon as possible and also allows you to split the delivery quantities up in partial deliveries. You now enter a sales order for 20 units. The system carries out delivery scheduling (backward scheduling) based on the customer‘s requested delivery date and determines the material availability date and then runs an availability check for that date.

Shortage: Case 3: Partial Deliveries Inward movement

Material Availability date

Delivery date

Order quantity: 20 100 60

50

10

10

Time

40

100

Material Availability date

50

Confirmation date Materials staging

Confirmation date R

Outward movement

- Customer requires a delivery as soon as possible - Customer permits partial deliveries

 SAP AG

When there is not enough stock, the system uses the availability situation and delivery scheduling to determine the next possible date for which the goods can be confirmed to the customer.
The partial delivery agreement means that the quantity can be split up.
You can confirm the 20 units for two later dates, each with 10 units.
Using the material availability date, the system uses delivery scheduling (forward scheduling) to calculate two partial deliveries, each with 10 units.


Shortage: Case 4: Availability Check with Replenishment Lead Time Inward movement

Material Availability date

Delivery date

Order quantity: 20 100 60

50

20

Time

20 40

50

100

Replenishment lead time

Outward movement

Material Availability date with RLT

Customer requires complete delivery

Materials staging without RLT

R

RLT = replenishment lead time

 SAP AG













You can include all inward and outward movements in an availability check but we recommend that you run the check up to the end of the replenishment lead time. The replenishment lead time can be defined for each material. For example, trading goods: planned delivery time + processing time for goods receipt, Finished goods: in-house production time The system assumes that the material will be available at the end of the replenishment lead time by the latest. The availability check is only run until the end of the replenishment lead time. If you check availability in Case 4 without including replenishment lead time, the result is the same as for Case 2. The customer requires a complete delivery. You cannot make 20 units available until the same date on which the last purchase order for 60 units arrives (inward movement). However, if the system checks availability using the replenishment lead time, you can make 20 units available for the date on which the purchase order with 50 units arrives (inward movement). Only the inward and outward movements that take place within the replenishment lead time are included in this check.

Shortage: Delivery Plant Determination

 The system determines the default delivery plant by accessing information in the following sequence:


Customer material info




Customer master record




Material master record

 If you enter the delivering plant manually at either the header or item level during sales order entry, this will override the default value.

R

 SAP AG

Shortage: Delivering Plant Standard Standard Order: Order: Availability Availability check check Item 10 Sched. line 1 Material 1400-400 MSI Motorcycle helmet - Standard Plant 1000 Hamburg Req.deliv.date 01/18/96 Open quantity 10,000 EA End lead time 01/24/96 Fix qty/date Max. part.deliveries One-time delivery on requested delivery date Date

01/10/96

Complete delivery Date

01/24/96

Confirmed quantity

10,000

Delivering Delivering plant plant for for item item is is automatically automatically Confirmed quantity 10,000 proposed proposed from from material material master master

Delivery proposal Date

01/10/96 01/24/96

Confirmed quantity

1,037 8,963 R

 SAP AG

Shortage: Purpose of Delivery Priority Once you have created requirements and carried out an an availability check in the sales order, you can use the delivery priority as a sort criterion to:


Reallocate committed stock based on delivery priority during rescheduling




Create deliveries in a delivery due list

Low Low priority priority

High High priority priority

R

 SAP AG

Shortage: Changing the Delivery Priority  The delivery priority can be changed with the fast change option when you create a sales order.  Follow this procedure:


Select the item(s)




Follow this menu path from the Change Standard Order Screen: Edit > Fast change of... > Delivery priority




Enter the new delivery priority indicator using one of these values:

 

01 for high priority 02 for normal priority

R

 SAP AG

Shortage: When are Backorders Created? The delivery date of the confirmed quantity and the confirmed delivery quantity are very important for the inventory sourcing process. The item is automatically placed in backorder processing if:


The confirmation status for an order is not completed




A confirmed quantity cannot be determined in the availability check

Backorder Processing R

 SAP AG







There are two types of backorder processing: Automatic with rescheduling Manual with backorder processing You can use the delivery priority (proposed from the customer master record for the sales order) as a sorting criteria in automatic rescheduling.

Sales from Stock - Shortage: Summary  The scope of Availability checking is defined by an indicator

assigned to the material in the material master and can take into consideration stock on hand, purchase orders, sales and delivery requirements, and other inward and outward movements.  The Availability check can also take into account Replenishment

lead time.  When a sales order is saved, the confirmed quantities from the

order are passed to MRP as order requirements and can be viewed in the Stock requirements overview screen. When the subsequent delivery is created, these order requirements become delivery requirements. These requirements reduce the available to promise quantity (to the next customer). Th actual stock is not reduced until Goods Issue time.  If the system can not confirm a quantity on an order it will

automatically go to Backorder processing.  R/3 will support various partial and complete delivery agreements

you have with your customers including fulfilling the order with only one delivery or using several deliveries. R

 SAP AG

Processing Inquiries & Quotations

R

 SAP AG




No exercises included in this

unit.

Processing Inquiries and Quotations  Techniques for creating inquiries and quotations  Ways of processing these documents

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 SAP AG

Objectives At the conclusion of this unit, you will be able to:  process business transactions dealing with inquiries

and quotations in the presales phase

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 SAP AG

How Sales Order Processing is Integrated in SD

Sales Sales support support

MM

Materials Management Production Planning PM Plant Maintenance CO Controlling Sales Financial Accounting Request forFIquotation Project System Quotation PS PP

Sales Sales

Master Master data data

Sales order Scheduling agreement, MM contract Materials Management Pricing Shipping Shipping Financial Accounting Availability check FI Delivery scheduling Billing Billing

FI

CO

DATA DATA WAREHOUSE WAREHOUSE  SAP AG 1999

Financial Accounting Controlling

Creating Inquiries and Quotations Sold-to party : C1 Valid from : 04/01 to : 06/30 Item

Material

Qty

With material master record

10

M1

10

Without material master record

20

-

20

Description: Desks (pine) Item Text Item text:

Approximate price 500 USD per piece

R

 SAP AG

Inquiries represent a general sales query (i.e. not binding agreement). Quotations represent a binding commitment to the customer. If a customer requests a material for which a material master record exists, you can enter the corresponding material number or find it using the F4 key.
If no material master record exists, or you do not know which material to offer the customer, you can enter a text item. Define the material briefly in the Description field and enter a long text describing the customer requirements.
You can specify a validity period in inquiries and quotations. You can then select documents in a work list according to these dates.




Alternative Items Quotation Sold-to party : C1 Valid from : to :

Item

Alt.

10

Matl.

Qty.

M1

10

20

10

M2

10

30

10

M3

10 R

 SAP AG

If the customer is offered a choice of alternative products for one item, you can enter the relevant materials as alternative items.
Enter first the material which the customer is most likely to order. Unless you specify otherwise, this material will be copied as default value to subsequent orders.
In the case of alternative items, enter in the AltItm field the item number of the material for which they may serve as substitute.


Creating Quotations with Reference to Inquiry Inquiry Sold-to party: C1 Item

Material

Quantity

10

M1

10

20

M2

20

30

M3

30

Quotation Status update

Sold-to party: C1 Item

Material

Quantity

10

M1

10

20

M2

20

30

M3

30

Options: Pricing Delivery scheduling Transfer of requirements Availability check R

 SAP AG

You can create a quotation with or without reference to an inquiry. If a text item exists in the inquiry and you are now able to offer a material for this item, you can do one of the following:  Enter the relevant material number in the appropriate inquiry item before entering the quotation.  Create a quotation with reference to the inquiry, delete the text item and enter a new item. Then make the appropriate entry in the Reason for rejection field to indicate that you have finished processing the text item.
You can follow the same procedures for creating orders with reference to quotations.
In the standard R/3 system, an item on the inquiry is considered fully referenced once the customer places a quotation against it.
A quotation can be referenced until the total quantity or validity date has been reached.



Rejecting Inquiries and Quotations Quotation Quotation Item 1

M1

10 PC

Item 2

M2 Rejected: Too expensive

20 PC

Item 3

M3

30 PC

Order Sold-to party: C1 Item 1

M1

10 PC

Item 2

M3

30 PC

R

 SAP AG




You can enter a reason for rejection for one or more items. These items will not be copied into the subsequent document.

Processing Inquiries and Quotations: Summary  The order process can begin with an inquiry or quotation. All information maintained in this phase can be used as a reference in subsequent orders.  You can limit the validity periods of inquiries and quotations.  You can break off a transaction prematurely if the ordering party rejects an inquiry or quotation. The document, however, is not deleted immediately as it may contain information which can be used later in analyses.  You can create an inquiry or quotation without reference to a material.  You can offer alternative materials to an item. R

 SAP AG




You can enter a reason for rejection for one or more items. These items will not be copied into the subsequent document.

Organizational Units in Sales and Distribution

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 SAP AG

Enterprise Structures in Sales and Distribution

Unit Contents:  Organizational units in the SAP R/3 System  Organizational Structures in Sales  Including Sales in the enterprise organizational structure

 SAP AG 1999

Enterprise Structures: Objectives

At the conclusion of this unit, you will be able to:

 Use organizational units in the SAP R/3 System to model the different areas at your company  Set up enterprise structures by assigning them to organizational units  Adjust the organizational structures to meet the legal and business requirements of your company

 SAP AG 1999

Introduction to Customizing SAP Reference IMG Enterprise IMG

FI

SD

CO Project IMG

CO PP

MM HR

PP MM

MM

CO

PP

FI

CO FI

Project 002 Project 002 View Project 001 Required activities

FI

PS

.....

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 SAP AG





The SAP IMG contains Customizing for all SAP R/3 functions. In the IMG you can take several steps to create smaller units that provide you with a better overview and make processing easier: 1. Create an Enterprise IMG (containing only those applications that you want to install at your company) 2. Define your Customizing projects (containing only those applications which are to be handled by your project team) 3. Create a Project IMG 4. Create further steps as needed

How to Access Customizing

 Access Customizing through the Procedure Model
Use

the Procedure Model as a navigator


Guides

you through the whole implementation process

 Or through the Implementation Guide (IMG)  The Customizing system also guides you through the initial sequence of steps.

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 SAP AG













Customizing is where you adjust the standard SAP R/3 System to meet your specific requirements. There are various ways of calling up the Customizing functions: from the Procedure Model using the Implementation Guide (IMG) with the ‘Read me’ function for an introduction to Customizing and a description of the sequence of steps necessary for implementing the SAP system. The IMG structure contains complete documentation for all functions. You can use it to write project documentation or maintain status information for Customizing steps. You can design and structure the implementation process clearly with help from project management and project analysis. The following clients are included in the SAP standard system: Client 000 - SAP reference client Client 001 - Customizing client Clients available in the standard system are complete. Client 000 is for use as a reference client and should not be changed in any way. You can also set up Customizing in a client other than 001.

Implementation Guide (IMG)  Global Settings  Enterprise Structure  Applications
Financial

Accounting


Materials Management


Sales


Production

Planning

 Basis Components  CrossCross- Application Components

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SAP configures the global settings according to the general data for each country and these do no normally need to be changed. However, you need to extend the country tables if you do business with countries that are not in the standard system. You define the organization structure according to the legal and business requirements of your company. This is where you decide how other applications should be organizationed such as Cost Accounting or Materials Management. Central functions, such as the concept of authorization or office communications, are valid for all countries and applications. Customizing for the individual applications is the responsibility of the project team members in each department for Logistics, Accounting and Human Resources. For example, if you implement the SAP R/3 application modules for Logisitics and Accounting, both teams might have to make joint decisions for some of the entries in Customizing. Customizing for Basic Components is mainly for hardware components and software setup.

Customizing - How to Proceed

 Define organizational units

 Allocation of organizational units

 SAP AG 1999

In the first step, you define your own organizational structure in the relevant data views. In the next step you assign the various organizational units to each other. Set up your organizational structure carefully and consistently, making sure that you take into account all the areas of your company.
Try to set up your organizational structure as efficiently as possible. This will avoid extra work when maintaining master data, for example. You have several evaluation options.




Enterprise Structures in the SAP R/3 System

Enterprise Enterprise structures structures

Organizational Organizationalunits units in in the the SAP SAP system system Company Company

Cost Cost accounting accounting External External logistics logistics

Accounting Accounting

Controlling Controlling areas areas Sales Sales organizations organizations

Purchasing Purchasing organizations organizations

Company Company codes codes Valuation Valuation areas areas

Internal Internal logistics logistics (materials (materials plan./production) plan./production)

Plants Plants

Inventory Inventory management management

Storage Storage locations/Batches/Special locations/Batches/Special stocks stocks

 SAP AG 1999

Objectives of the organizational structures in R/3 are to:
Achieve flexibility in representing complex corporate structures
Adapt to changes in the corporate structure
Distinguish between views in logistics (sales and distribution, purchasing, etc.), cost accounting and financial accounting
Process data across company codes

Organization in Accounting

Client

Company code 1000

Company code 2000

Business area 1000

Business area 2000

Business area 1000

Business area 3000

Business area 4000

GeschäftsBusiness area 2000 bereich 3

Company code 3000

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A client is a self-contained technical unit. General data and tables that are used for several organizational structures are stored at this level. All organizational units in a client are subject to a common control procedure. For this reason, a client is often synonymous with a group. The standard chart of accounts, for example, is defined at client level. You can use the company code and business area to represent a group from a financial accounting viewpoint. You can create several company codes for every client, in order to carry out financial accounting for several independent companies simultaneously. At least one company code must be created, however. Each company code represents an independent accounting unit. Several company codes can use the same chart of accounts. A business area is a separate business unit for which internal reporting can be carried out. Business areas can be defined for more than one company code just as more than one business area can be defined for a company code. For this reason, the business areas in all company codes must have the same description. Using this organizational unit is optional. You will use business areas if you if you want to calculate profit and loss statements internally and not just for the entire company code. In the case of postings made from sales and distribution, the business area can be derived automatically.

Sales Organization

Client

SlOrg 1000 SlOrg 1020

Company code 1000

SlOrg 2000

Company code 2000

 SAP AG 1999

A sales organization represents the organizational structures in sales and distribution. Each sales organization represents a selling unit as a legal entity. It is, for example, responsible for product liability and other customer rights of recourse. You can use sales organizations to subdivide markets into regions. Each business transaction is processed within a sales organization.
A sales organization is assigned to exactly one company code.
A sales organization is assigned to one or more plants.
Each sales organization has its own master data, for example, its own customer and material master data as well as condition records.


Organizational Structures in Sales

Distribution channel Division Sales organization

1000 1000 10 10 00 00

Sales area

Sales office

Sales group

 SAP AG 1999




A variety of organizational units are available for modeling sales business transactions. In the sales area, the following organizational structures can be defined and used to model and structure the sales structures: - Sales organization - Distribution channel - Division - Sales area - Sales office - Sales group - Other organizational units in SD, such as the shipping point and the transportation planning point, are covered in other SD courses.

Division

SlOrg 1000

Division

02 Motorcycles

07 High Tech

 SAP AG 1999

A broad product range can be divided into divisions. In the SAP system, you can also define a division-specific sales structure.
You can make customer-specific agreements for each division, for example regarding partial deliveries or pricing. Within a division, you can carry out statistical analyses or devise your own marketing strategies.


Sales area

Sales organization Frankfurt

Distribution channel End customer

Distribution channel Resale

Division Motorcycles Division High Tech

Sales organization London

Division Motorcycles

Division Motorcycles Division High Tech

Sales areas  SAP AG 1999

A sales area is a combination of sales organization, distribution channel and division. Sales documents, delivery documents, and billing documents are always assigned to a sales area. Every sales process always takes in a specific sales area.
The relevant master data can usually be maintained explicitly for each sales area, for example: - Sales-relevant customer master data - Sales-relevant material master data (the division is a general field of the material master; as a result, a material can only be assigned to one division.) - Conditions (prices, discounts/surcharges)
You can carry out analyses within a sales area, for example, by evaluation sales volume.
You should try to keep the organizational structure of a sales area as simple as possible.



Plant

Client

Plant 1000

Plant 3000

Plant 1200 Plant . . .

Company code 1000

Plant 3100 Plant . . .

Company code 3000

 SAP AG 1999

Materials management is primarily concerned with the flow of materials within a company. Production facilities and locations for storing stock must therefore be defined in the system. The terms used in the system for these entities are plant and storage location. Material stocks can be described in detail at the level of different storage locations within a plant.
A plant can either be a location for production and material requirements planning (MRP) or it may simply represent one or more material stock locations in close proximity to one another.
Each plant is assigned to a unique company code.
For a plant to deliver goods to customers, it must be configured appropriately as a delivering plant in SD customizing. During the sales process, the delivering plants are first used to verify the stocks, and later to supply the goods the customer has ordered.


Assigning Sales Organizations and Plants

Client

Plant 1100

0001 02

Plant 1400

Plant 1200

1000 12

Company code 1000

Plant 2200

2200 10

Company code 3000

 SAP AG 1999

You define which plants are allowed for each sales organization. Which plants are used depends on the distribution channel. Any one sales organization can sell goods from several plants. A plant can be assigned to different sales organizations at any one time, all of which can sell from this plant.
A sales organization can also sell products supplied by a plant which is assigned to a different company code (inter-company sales processing).
By making the plant dependent on the distribution channel, you can differentiate further between plants within a sales organization for sales. This would allow the distribution channel ”direct sales” for certain plants in a sales organization but not for others.


Internal Organization in Business Development and Sales Sales Area

Northern office

Sales office

Sales group

Salesperson

001

Miller

Southern office

002

White

Kramer

Smith

003

004

005

Jones

Brown

Douglas

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 SAP AG

Sales office Geographical aspects of the organizational structures in business development and sales are defined using sales offices. A sales office can be viewed as a subsidiary. Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a particular sales area, the sales office must be permitted for that sales area.
Sales group Data on the employees of a sales office is recorded in sales groups. For example, sales groups can be defined for each division. Sales groups are assigned to sales offices.
Salespersons A sales group consists of a certain number of salespersons. A salesperson is assigned to a sales office and group in the sales employee master record. Thereafter you can select this personnel master record in the partner screen of a sales document.
You can carry out sales analyses on the different internal organization levels.


Distribution channel

SlOrg 1000

Distribution channel

12 Resale

10 End customer

 SAP AG 1999

You can use different distribution channels in Sales and Distribution to provide the market with the best possible service. Distribution channels provide a general structure for distributing goods. Wholesale trade, sales to industrial customers or direct sales from a plant are typical examples of distribution channels.
Distribution channels can be set up according to your company's market strategy or internal organization.
Customers can be served through one or more distribution channels within a sales organization.
In addition, you can vary the master data relevant to sales, such as customer master data, sales master data, prices, and surcharges/discounts, for each sales organization and distribution channel.


How SD Is Integrated in Financial Accounting

1000

Client

2000

3000

4000

Company code 1000

2000 1000

Company code 2000

Business area 4000

 SAP AG 1999














All of the organizational units within a client are subject to one business control. Therefore, a client can be considered to be a synonym for the group. A client is a self-contained technical unit. General data and tables that are used for several organizational structures are stored at this level. You can use the company code and business area to represent a group from a financial accounting viewpoint. You can create several company codes for every client, in order to carry out financial accounting for several independent companies simultaneously. At least one company code must be created, however. Each company code represents an independent accounting unit. Several company codes can use the same chart of accounts. A business area is a separate business unit for which cross-company code internal reporting can be carried out. Business areas are not limited by company codes. For this reason, the business areas in all company codes must have the same description. Using this organizational unit is optional. You will use business areas if you if you want to calculate profit and loss statements independently of the company code. In the case of postings made from sales and distribution, the business area can be derived automatically.

Enterprise Structures: Summary

You are now able to:

 Use organizational units in the SAP R/3 System to model the different areas at your company  Set up enterprise structures by assigning them to organizational units  Adjust the organizational structures to meet the legal and business requirements of your company

 SAP AG 1999

Organizational Units: Summary (2)  Within a sales organization, sales can take place across

different distribution channels that represent different sales methods.  Divisions are set up for different product groups. You can

make customer-specific agreements for each division.  A sales area is the combination of sales organization,

distribution channel and division.  Plants permitted for sales are determined for each sales

organization and distribution channel.

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Controlling Sales Documents with Sales Document Type

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 SAP AG

Controlling Sales Documents with Sales Document Types

Unit Contents:

 Document types in Sales  Sales document functions  Sales document structure and data  System settings for sales documents  Assigning organizational units

 SAP AG 1999

Sales Document Type: Objectives

At the conclusion of this unit, you will be able to:

 Identify the elements that control the sales documents  Name examples of different sales document types used for different business processes  Explain what the sales document type does  Create Customizing settings for the sales document type  Restrict the validity of sales document types to sales areas

 SAP AG 1999

Controlling Business Processes in Sales

Subsequent document

Document Control parameters

Control parameters

Control parameters

Sales document type

Item category

Schedule line category

Copying control

Header

Copying control

Item

Copying control

Schedule line

 SAP AG 1999

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.



Examples of Sales Document Types

PrePre-Sales Phase IN = Inquiry QT = Quotation

Sales Phase OR RO CS CF DF

= = = = =

Standard order Rush order Cash sales Consignment fill-up Delivery free-of-charge

Outline Agreements NMS= SA = RC = WK1=

Quantity contract Scheduling agreement Rental contract General value contract

Complaints RE = Returns CR = Credit memo request SDF = Subsequent free-of-charge delivery DR = Debit memo request

 SAP AG 1999




Different sales document types are delivered with the system to represent the different business processes. These provide you with examples of how to use sales document types.

Functions in the Sales Document Type

Number assignment Checks Assigning basic functions

Division Open quotations/contracts Info record

Enhancement for contracts

Sales document type

Default values Date Billing type/delivery type Blocks

• Partner determination • Pricing • Incompleteness • Free Goods • Determining materials • Output • ...

Mandatory reference  SAP AG 1999

In Customizing for the sales document type, you configure the settings that influence the sales process, such as the sales document category, delivery and billing blocks or the document types for subsequent deliveries and billing documents.
You can also save default values that appear when you create a document. You can overwrite these values at different levels of the document to match particular procedures, such as the customer's requested delivery date or certain basic requirements for contracts.
In addition, you can activate various checks such as messages about open quotations or outline agreements, searches for customer-material info records, or credit limit checks. Note that activating checks can affect system performance.
Note:  Adding a new sales document type to sales processing is time-consuming because many of the entries in Customizing depend on the sales document type. To avoid any difficulties, you should generate a new sales document type by copying an existing one with similar functions. This document type should be one from the SAP standard system or should already have been tested by your company.  When you copy the document type, both the fields and the dependent entries are copied. Once the system has copied the document, it automatically generates a log that you can save for documentation purposes.


Order Types Permitted for Sales Areas

Sales area Sales organization 1000 Distribution channel 10 Division 00

Sales document types

Standard order Inquiry

Permitted?

Free-of-charge deliveries

Returns

 SAP AG 1999

You can use Customizing to define which sales document types are valid in which:  Sales organizations  Distribution channels  Divisions
This means you can limit the validity of your sales document types at the level of sales organization, distribution channel and division.


Sales Document Type: Summary

You are now able to:

 Identify the elements that control the sales documents  Name examples of different sales document types used for different business processes  Explain what the sales document type does  Create Customizing settings for the sales document type  Restrict the validity of sales document types to sales areas

 SAP AG 1999

Controlling Sales Documents with the Item Category

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 SAP AG

Controlling Sales Documents with the Item Category

Unit Contents:  Item categories in the sales document  Functions of the item category  Controlling sales document items  Determining the item category automatically in sales documents  Using item categories to control bills of material in sales documents

 SAP AG 1999

Item category: Objectives

At the conclusion of this unit, you will be able to:

 Identify and explain the important control parameters for item categories  Create a new item category  Configure the system so that item categories are automatically assigned to a sales document type  Control settings for bills of material in the sales document

 SAP AG 1999

Examples of Item Categories PrePre-Sales Phase AFN = Standard item in inquiry AGTX= Text item in quotation

Sales Phase TAN = Standard Item in Standard order TAD = Service in standard order BVNN= Free-of-charge item in cash sales KEN = Standard item in consignation issue

Outline agreements KMN = Standard item in quantity contract WVN = Standard item in maintenance contract WKN= Item in value contract

Complaints REN = Standard item in returns G2TX= Text item in credit memo request KLN = Free-of-charge item

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The standard system contains several item categories that represent different business processes which you can either use as they are or copy to create your own categories.
The item category is defined with a four-digit key. These keys are copied automatically from the original German keys and are not translated. You can decide if you would like to keep the standard keys or define your own so that the abbreviation refers to the sales document type and what the category is used for.


Item Category Functions

Separate business data

Completion rule

Schedule lines permitted

Delivery relevance

Assigning basic functions Item category

• Partner determination • Text determination • Incompleteness • ...

Billing relevance

Pricing

BOMs

 SAP AG 1999

The item category controls what the item does in the sales document and in any later processing for that business transaction.
The essential characteristics of an item category decide: - Whether business data in the item can be different to that of the document header - Whether pricing applies to the item - Whether and how an item is billed - Whether the item refers to an item or whether it is just a text item - Which incompletion log is used to check the item data
You can change the settings for the item categories defined in the standard system. You can also define new item categories. To do this, you should always copy item categories that already exist and have been tested, then change them to meet your requirements.
The delivery relevance indicator is only for items without schedule lines. You could indicate that a text item was relevant to delivery, for example, so that the system copies this item from the sales order into the delivery document.


Controlling the Items in the Sales Document

Function

Example

Standard item in quotation

Pricing Schedule lines allowed Not relevant for billing

AGN

Standard item in order

Pricing Schedule lines allowed Relevant for billing

TAN

Free-of-charge item in order

No pricing Schedule lines allowed Not relevant for billing

TANN

No pricing No schedule lines Relevant for billing

TATX

Text item in order  SAP AG 1999

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.

Assignment: Item Category to Sales Document Type Sales document

Sales document type

Header Material master Item category group

View: Sales: Sales org. 2

ABAP/4 Editor form XY_001.

ram g o Pr sy-subrc = 4.

Item usage

check: FeldX ne FeldY.

Sales document

sy-subrc = 0.

endform.

Item category of higher-level item

Item category(ies)

Item

 

System proposal Alternatives

 SAP AG 1999

Item categories are assigned to sales document types. The purpose of this assignment is to: - Configure the system to propose an item category when you create an order - Define alternative item categories to the system proposal
This assignment is influenced by: - The item category group from the material master record. The item category group allows you to group different materials that behave in a similar way during Sales and Distribution processes, for example. You can also define new item category groups if needed. - Item usage, which in certain cases is set internally in the program. The system uses TEXT if the user enters an item in the inquiry or quotation by entering data in the "Description" field without specifying a material number. FREE is used for controlling the free goods item. - Item category of a higher-level item (in the case of a sub-item)



BOMs: Example Computer

Computer

Mouse

Monitor

Screen

CPU

Keyboard

Floppy drive

Casing

 SAP AG 1999

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.


Exploding Bills of Material in Sales Documents

Material master: R-1001

Item category of main item:

TAQ

 Pricing

Sales: Sales org. 2

Item category group:

Sales document

ERLA

Item category of sub-item:

TAE

 Not priced

Alternative control of BOM

Sales document Material master: R-1001

TAP

 Not priced

Sales: Sales org. 2

Item category group:

Item category of main item:

LUMF

Item category of sub-item:

TAN

 Pricing  SAP AG 1999










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 higherlevel item. In Customizing for item categories, you control which item are relevant to pricing and how you want to implement requirements transfer.

Sub-items

Order Header

Item 10

Examples of sub-items Free goods

Item 20 Higher item 10 Item 30

BOM components Service

 SAP AG 1999










You can assign an item to a higher-level item if, for example, a customer receives free goods for ordering a certain quantity of your product. Example: Item 10: M1 100 units 1000 UNI Item 20: M2 10 units Free of charge For ordering 100 pieces of item 10, the customer receives 10 units free of charge. To display this, you enter item 10 in the higher-level item field for item 20. This simple form of supplying free goods is supplemented with the automatic determination of free goods (see the unit "Free goods"). Other examples for using sub-items include the explosion of BOMs or service items in sales documents. Note: Alternative items can also be recorded in quotations and Inquiries in addition to sub-items. Alternative items are treated differently from sub-items; for example, alternative items are not included in the net value of the document.

Item category: Summary

You are now able to:

 Identify and explain the important control parameters for item categories  Create a new item category  Configure the system so that item categories are automatically assigned to a sales document type  Control settings for bills of material in the sales document

 SAP AG 1999

Controlling Sales Documents with Schedule Line Categories

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 SAP AG

Controlling Sales Documents with Schedule Line Categories

Unit Contents:  Schedule line categories in sales documents  Functions of schedule line category  Controlling the schedule line category  Automatically determining the schedule line category

 SAP AG 1999

Schedule line category: Objectives

At the conclusion of this unit, you will be able to:

 Identify and explain the most important control parameters for schedule line categories  Create a new schedule line category  Configure your settings so that schedule line categories are automatically assigned to each sales document item

 SAP AG 1999

Examples of Schedule Line Categories

PrePre-Sales Phase

AT BN

= Inquiry schedule line = Schedule line in quotation without MRP

Sales Phase

CP C0

= Order schedule line with MRP = Consignment issue without availability check

Outline Agreements

CV

= Scheduling agreement with deterministic MRP

Complaints

DN

= Schedule line in returns without MRP

D0

= Consignment returns

 SAP AG 1999

Different schedule line categories are delivered with the system to provide different control options for the items throughout the sales process. You can use them as is or as templates for creating your own schedule line categories.
The schedule line category is defined with a two-character key. The standard system already includes keys that often indicate the usage of the schedule line category. The first character indicates the sales process in which the schedule line category is used. A = Inquiry B = Quotation C = Order D = Returns The second character in the key indicates what happens to the schedule line within logistics. T = No inventory management X = No inventory management with goods issue N = No materials planning P = Material requirements planning V = Consumption-based planning You can decide if you would like to keep the standard keys or define your own so that the abbreviation refers to your sales document types and how the category is configured.


Schedule line category

Goods movement

Delivery relevance

Purchasing

Schedule line category

Assigning basic functions

• Incompletion • ...

Availability check

Requirements transfer  SAP AG 1999















Schedule lines contain delivery dates and quantities as well as information about the requirements transfer and inventory management. They are a prerequisite for delivering materials. In Customizing for item categories, you decide if you will allow schedule lines for the item. You can assign schedule line categories to each item category. By defining a schedule line category, you determine which schedule lines are actually relevant for delivery. You must activate the relevant to delivery indicator if you want the goods to be physically delivered. In the schedule line category you set the movement type to control which changes to quantities and values are posted to inventory accounting. Inventory management is reponsible for maintaining the movement types. Movement types have been configured for all processes in the SAP standard system. Many of the movement types relevant to SD are between 601 and 699. You can deactivate requirements transfer and availability checks at the schedule line level. A prerequisite for the purchase order is typically a purchase requisition and this document can be automatically generated from the sales document. To do this, you need to configure the purchase order type as well as item and account assignment categories in the purchase order. If you activate a delivery block in the schedule line category, this block is automatically set at the schedule line level in the sales document.

Controlling Schedule Lines in Sales Documents

Function

Example

Schedule line in quotation

Not rel. for delivery No requirements trans. No movement type

Requirements planning in order

Relevant for delivery Requirements transfer Movement type 601

CP

Schedule line in returns

Relevant for delivery No requirements trans. Movement type 651

DN

BN

 SAP AG 1999

Examples in the R/3 standard system. Schedule lines in quotations are not relevant for delivery. The requirements transfer is inactive in the schedule line category. Goods movements are not necessary in your warehouses so no movement type is needed..
Since schedule lines from category CP generate delivery items in the sales order, the relevant to delivery indicator is activated. The requirements transfer is active in the schedule line category. Complete Customizing for requirements transfer (for example, for requirements planning) requires you to define and assign the requirements class. The goods movement is controlled by movement type 601. With this movement type, when the goods issue for the delivery is posted, the quantity shipped is taken from unrestricted use stocks.
If you want a returns delivery to follow a return order, you need a schedule line category that is relevant for delivery. In this case, transferring requirements is not necessary. Movement type 651 enables you to make sure that goods receipt goes to blocked stock returns.



Delivery block

Block goods issue

Block sales orders

Block picking

Block requirements

Block delivery due list

Block printing

 SAP AG 1999


















Delivery blocks are used to take certain processes out of the normal procedure for particular reasons (such as political instability, insufficient stock, payment difficulties) and to prevent any further automatic processing. This means that the procedure stops until the employee responsible can clarify the situation and decide on what to do, at which point s/he can deactivate the delivery block manually. You can define delivery blocks in sales documents at header, item, or schedule line level. The block at item level represents a default value for the schedule line(s) of that item. You can also set delivery blocks directly in sales document types or schedule line categories. When you create sales documents, the corresponding blocks are then set automatically at header or schedule line level. Customizing the blocking reasons in shipping (transactions OVLS, OVLX) controls the effect of the delivery blocks. At header level, you can control whether the blocking reason prevent you from creating a delivery at all or whether certain steps in the sales process are blocked. The delivery of sales documents that are blocked at the header level is only prevented when the blocking reason is assigned to the delivery type in Customizing (transaciton OVLX). If no assignment is defined, the delivery can be created. The blocking reason then has different effects on the different steps in the sales process. The settings in transaction OVLS determine which individual steps are affected: (Blocks: order / picking / requirements / goods receipt / printing / delivery due list). In contrast, a block set at the schedule line level always blocks that schedule line for delivery, regardless of the controls described above.

Assignment: Schedule Line Category to Item Category Sales document Item

Item category

Item

Material master

View: MRP 1

MRP type

Schedule line category(ies category(ies))

System proposal  Alternatives 

 SAP AG 1999

Schedule line categories are assigned to item categories. The purpose of this assignment is to:  Configure the system to propose a schedule line category automatically when you create an order  Determine the schedule line categories that the user can choose instead of the system proposal.
The assignment is influenced by the materials requirements planning (MRP) type in the material master record.
The system takes two steps to automatically determine the schedule line category:  First it tries to determine the schedule line category using the key combination of item category and MRP type.  If no schedule line category is found, the system searches for the key combination of item category / no MRP type.



Schedule line category: Summary

You are now able to:

 Identify and explain the most important control parameters for schedule line categories  Create a new schedule line category  Configure your settings so that schedule line categories are automatically assigned to each sales document item

 SAP AG 1999

Dataflow

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 SAP AG

Data flow

Unit Contents:  Create with reference  Document flow  Copying control and copying requirements  Updating the reference status

 SAP AG 1999

Data Flow: Objectives

At the conclusion of this unit, you will be able to:

 Use the document flow  Understand and influence how data is passed between sales documents at header, item and schedule line level  Use the completion rule for item categories to control documents created with reference

 SAP AG 1999

Create with Reference: Copy SD document: 5376 Sold-to party: 1000 Business data Item Material Quantity Deadline Price 10 M1 40 04/01 100.20 M2 50 04/01 150.30 M3 100 01.04. 120.-

Dialog Create with reference Document Copy

5376 Selection list

SD document: Sold-to party: 1000 Business data Item Material Quantity Deadline Price 10 M1 40 04/01 100.20 M2 50 04/01 150.30 M3 100 04/01 120.-

 SAP AG 1999




When you create with reference using the "Copy" pushbutton in the dialog box, the full quantities of all items are copied to the subsequent document. This does not apply to items in the reference document that have been partially or fully completed.

Document flow - List Quotation

Order

Delivery

Invoice

Returns

Returns delivery

Returns credit memo

Document flow of quotation Quotation . Order . . Delivery . . . Invoice . . Returns . . . Returns delivery . . . . Returns credit memo . . .  SAP AG 1999









A sales process is made up of the sequence of individual process steps recorded as documents. This process chain is stored in the document flow. Document flows are updated for the overall document and for individual items. You can view all of the documents within the document flow in a list. In many cases, you can branch directly to the display of a document and then return to the document flow. In the status overview that can be displayed for each document in the document flow, you can quickly find detailed information about the current status of the sales and distribution process. Example:  Order -> Delivery status  Delivery -> Picking status -> Billing status  Billing doc. -> Posting status

Copying Control in SD Quotation (QT)

d allowe Standard order (OR)

d allowe Delivery (LF)

d allowe Billing document (F2)

 SAP AG 1999

In copying control you determine which document types can be copied to another document type. Examples of this show how you can create a:  Sales document type from a sales doc. type e.g. Standard order (OR) Create with reference -> To contract...  Assign an order item to a contract subsequently  Use the automatic system search for open outline agreements when you create an order

Messages about Open Outline Agreements

Order

Continue.

There are open outline agreements for material M3

M1 100 PC Smith Inc. Customer: M2 30 L London Material

x

Open outline agreements List

x

Cancel

Value

M3 5 PC 5 000 USD - 10% discount

Referenced documents List Edit Goto System Help



Copy

Open documents for customer OrderTyp Doc

Item

...

KM

40000069

0010

...

KM

40001292

0030

...

...

 SAP AG 1999




You can configure Customizing for the sales document type so that when you create a release order the system automatically searches for any open outline agreements. You can choose several options for the search and how the system should react if the search is successful:  Blank No checks  A/B Check at header / item level: The system compares the customer and material numbers. If there are any open outline agreements, it displays a dialog box where you can choose whether to display a list of the agreements or continue processing the sales order.  C/D Check at header / item level and copy if unique: If the system finds exactly one open outline agreement, the document is created automatically. Instead of displaying a dialog box, the system issues an informational message in the status bar for the release.  E/F Check at header / item level and branch immediately to selection list: Instead of displaying a dialog box, the system immediately goes to the selection list. If there is only one open contract, ,the system reacts as in C/D.

Partners Authorized to Release in Contract

M S

Contract Sold-to party: Smith Inc., New York Partner authorized to release: Smith & Little, SF Material

Partner function SP

Partner function AA

Value

M1 4 PC 6 000 UNI - 10% discount

Customer hierarchy

 SAP AG 1999













Normally, both the sold-to party and other business partners are authorized to release from a contract. This means that the central office for a company can decide which of its branches can release from a contract. There may also be several ship-to parties. To meet this requirement, maintain the Check partner authorization field in Customizing for the sales document type. In the sales order, you can then display the partners authorized to release in a customer list (rule A) or in the customer hierarchy (rule B). The partner determination procedure assigns the partners authorized to release against the contract. If there are several partners authorized to release against a contract, you can choose the relevant partner from a list when you create the release order. If there are several ship-to parties that are authorized to release for the selected sold-to party, you can choose the relevant one from a list when you create the release. So that the releasing partner can be different than the sold-to party for the contract, copying control uses requirement 002 (different customer to that in header) at header level.

Contract Data in Sales Documents Order Screen: Contract data IMG Sales Document Type:

RC

Contract start:

07.01.

Contract data allowed:

X

Contract end:

31.12.

Installation date:

Order Header

Acceptance date: Contract conclusion:

Sales Document Type: RC Rental contract Customer:

Item 10

C1

Dismantling date: Requested cancellation date: Canceling party:

Item 20

Cancellation received:

 SAP AG 1999

In Customizing for sales document types, you can activate the contract data.  Blank No contract data  X Contract data is permitted. Any changes to the contract header are not copied to the items.  Y Contract data is permitted. Changes to the contract header are automatically copied to the items if the header and item data were previously identical. Changes are saved in a log. The log also notes any possible problems and inconsistencies.
You can maintain contract data at both the header and the item level in the sales document. Contract data at header level is valid for all items as long as the data at item level is not different.
You can use the date determination rules so that the system automatically finds deadlines relevant to the contract.


Determining Dates IMG Date determination rules:

IMG Sales Document Type: Contract profile:

RC

01 02 05 08 12 ...

Today's date Start of contract Installation date End of period Start of contract + 1 week

0001 RC - Create contract

Contract profile

0001

Contract start rule:

05

Contract end rule:

08

Duration:

1 year

Cancellation proc.:

0001

Proposal  SAP AG 1999

Contract start:

07/08/00

Rule 05 Contract end:

07/07/00

Rule Installation date:

07/08/00

Manual entry

When you create a contract the system proposes, for example, the start and end dates of the contract. You define the date determination rules in Customizing. These rules start the document on one of the dates that you have set (for example, today's date or installation date). Any interval you specify can also be added to this date. You can also schedule the date for the beginning or end of the month that is determined in this manner.
If you specify a duration category, the system automatically generates the duration of the contract. This can be a component of the date rule, for example, for determining the end of the contract.
If you assign a contract profile to the sales document type, the system automatically determines default values specific to the contract. These could be:  Rules for determining start and end of the contract  Duration category  Subsequent activities  Cancellation procedure



Cancellation

Sales document / Contract data Contract start:

04/01/00

Contract end:

03/31/01

Yes Accept cancellation date?

Cancellation Requested cancellation date: 11/01/00 Cancellation received:

10/01/00

Next possible cancellation date: 03/31/01

Manual input

 SAP AG 1999

Contracts are frequently extended beyond the original contract duration if one of the contract partners has not cancelled it beforehand.
Example: The contract begins on April 1st. On October 1st, the customer gives notice to cancel for November 1st. However, because the contract cannot be cancelled before the end of its first year, the system issues a warning. You should accept the next possible cancellation date or enter a different one manually.
For processing the cancellation of regularly extended contracts, you can define a cancellation procedure that contains one or more cancellation rules. The cancellation procedure can be stored in the contract profile and therefore be controlled as a default value in new contracts.


Customizing for Cancellations

Contract profile

0001

Cancellation procedure 0001 Cancellation rule

Cancellation procedure 0001

0001 Canc. up to 1 wk after start

01/01/98 - 12/31/07

Cancellation date

02

Assignment Canc.procedure Canc. rule 0001

0001

0001

0002

Time limit: Unit of time: Canc. period: Unit of time: Rule valid for:

1 1 day 12

 SAP AG 1999

You can define cancellation rules to meet your requirements. They contain the date rule for determining the cancellation date, cancellation notice period and the validity period for the rule.
Example:  In the example above the customer can cancel the contract within a week. Within this period, he or she can cancel it daily (that is, at any point in the week).  Another cancellation rule could determine that the cancellation has to take place annually with a notice period of three months before the next cancellation date.


Value Contracts

Contract Customer: Smith AG Headquarter s Validity:

01/00 - 12/00

Item

Target value

10

10 000 UNI - 10% discount

 SAP AG 1999

The value contract is an outline agreement between you and your customer. It defines that your customer agrees to purchase a fixed dollar value (target amount) of goods and services during the defined period.
The value contract can contain other agreements between you and your customer that are checked in the release orders:  Special price agreements  Customer restrictions  Material restrictions
If the check is activated in Customizing, when you enter a release order, the system issues a message informing you whether there are any valid contracts.
You can change the target values in the contract later.


Valid Materials Assortment module M1 Material 1 M5 Material 5 D1 Installation

Product hierarchy

D3 Maintenance ... ...

Level

1 2 3

00001

Tools

0000100001 Electric

....

....

0000100002 Pneum.

....

....

 SAP AG 1999












In the standard system you can restrict the materials that can be released in a value contract in the following ways:  Product hierarchy (can be searched for generically by entering the first few digits such as 0000101*)  List of valid materials (assortment module) If both the product hierarchy and the assortment module are maintained in the document, all of the materials that belong to one or other of the material groups are valid for the release order (logical OR link). If you have not made any entries in the document, all the materials defined in sales can be released unless there are any other restrictions in copying control at item level. These materials are also limited in that they must be permitted for the sales area assigned to the value contract (copying control). You can maintain assortment modules for value contracts in master data for products (moduel type 6). You can define a validity period for each material in the assortment module. When you create a release order, the system checks the current date against the validity period.

Assortment Module

Vendor ? Material group ?

Assortment module

M1 Material 1 M5 Material 5 D1 Installation D3 Maintenance ... ... R

 SAP AG

You can maintain assortment modules for value contracts in master data for Products. Module type 6 is automatically used for value contracts. The system helps you to select materials by displaying a selection screen when you choose Materials. Here you can generate a list of materials from which you can select the materials for the assortment module.
You can define a validity period for each material in the assortment module. When you create a release order, the system checks the local date against the validity period.






Value Contracts - Releases Contract Release order

Customer: Smith AG Headquarte rs Validity: 01/00- 12/00 Item Target value

Customer: Smith Inc. New York Material

10

Release Value order

10 000 UNI - 10% discount

M1 PC 6 000 UNI Smith Inc. - Customer: 10% New York discount Material

Value

Release order

M2 3Pc 6 000 UNI discount

- 10% Customer: Smith Inc. London Material M3 5 PC

Contract already fulfilled

Value 5 000 USD - 10%

discount  SAP AG 1999

A release order releases a partial quantity of the agreed total value of the goods or services from a contract. The release order is a type of sales order.
Normally, you create a release order with reference to a contract. Several functions exist for searching for the relevant contract:  Search for suitable contracts using the partner number  Search for suitable partners using the contract number (for customer lists only)











With the item selection function, you can select items from all the valid materials. You can choose materials directly or by exploding an assortment module. Delivery quantities and times are stored in the schedule lines for the release order. You can create releases in any currency and the total value is updated in the currency of the contract. When you create a release order, the system checks the requirements stored in the contract such as the release rule or validity period. The value of the release order is compared with the value still open in the contract. You can define how the system responds when this value is exceeded. You can assign an order to a contract later both at the header and the item level but the contract values will only be updated if you assign it at the item level. In both cases, the system automatically re-runs pricing.

Updating Values in Contracts

Release order

Returns

Customer: Smith Inc. London Material M3 5 PC

Customer: Smith Inc. London

Change

Value 5 000 USD

Material M3 2 PC

- 10%

Value 2 000 USD - 10%

discount

discount

Contract

Update release value

Customer: Smith AG Headquarte rs Validity: 01/00- 12/00 Item Released value 10

Corrected release value

4 725 UNI

 SAP AG 1999

When you create a release order, the system automatically updates the released values in the contract. The release value is calculated from the total of open order and delivery values as well as the values in the contract that have already been billed.
You can change the value in a value contract item later.
Subsequent changes to the release are updated in the contract. These could be:  Rejected release items  Returns  Overdelivery of release order  Pricing changes to the billing document  Deleted orders or deliveries  Cancelled deliveries or billing documents
The document flow represents the whole business process from contracts to release orders, deliveries, billing documents and returns processing.


Value Contracts - Billing Documents

Contract Release order

Customer: Smith AG Headquarte rs Validity: 01/00- 12/00 Item Target value 10

Customer: Smith Inc. London

10 000 UNI

Material Net value

- 10% discount

M3 5 PC

5 000 USD - 10%

discount

Billing document Customer: Smith Inc.

Billing plan? Material Net value M1 2 PC

.... UNI

M2 5 PC

.... UNI

Bill release?

 SAP AG 1999

You can either bill the value contract directly or you can bill each release order.  Billing a release order You can use standard order OR for release orders. Billing can be either order- or deliveryrelated.  Billing a value contract Order type WA exists in the standard system for the release. The value contract is then billed according to the order. A billing plan allows you to bill the contract for several dates and partial quantities at once. The system automatically adjusts the open billing dates if you make a subsequent change to the target value in an item in the value contract.
The system does not allow you to automatically bill value contracts that have not been completely released.


Controlling Value Contracts

Sales document type  WK1

Item category  WK1 → WKN

VCTR ? VCIT ?

- With assortment module - Doc. procedure Y

 WK2 - Material-related - Doc. procedure Y




WK0001 with WK00

 WK2 → WKC


Completion rule E




Value contract material




Contract release control

 SAP AG 1999















There are two types of value contracts in the SAP standard system:  WK1 General value contract: This order type allows you to refer to different materials and services according to the selection options described earlier.  WK2 Material-related value contract: This is used when the contract contains exactly one material (for example, configurable). In Customizing, you only distinguish between the sales document types for value contracts WK1 and WK2 in the screen sequence group for document header and item. You can maintain the value contract material in the item category. It acts as a technical vehicle in the contract item for determining important data, such as account assignments, taxes or statistical updates. Document type WK1 uses item category WKN. Document type WK2 uses item category WKC. According to what you enter in the item, the system determines the item category with the usage indicator VCTR or the item category group VCIT. In copying control, you can decide at item level if the value contract material should be copied to the release, (WKC) or not (WKN). If a release exceeds the target value in a contract item, you can configure how the system reacts: no response, two different warning messages and an error message. In the standard system, value contracts (document determination procedure Y) use pricing procedure WK0001 with condition type WK00 for the agreed target value.

Outline Agreements: Summary

You are now able to:

 Use different types of outline agreements and their functions  Configure outline agreements in Customizing so that they meet your requirements

 SAP AG 1999

Incompletion

R

 SAP AG

Incompletion

Unit Contents:  Incompletion log  Incompletion status  Incompletion procedure  Lists of incomplete orders

 SAP AG 1999

Incompletion: Objectives

At the conclusion of this unit, you will be able to:

 Explain the incompletion log and process incomplete orders  Adjust the incompletion log in Customizing to meet your requirements

 SAP AG 1999

Incompletion log

Order Sold-to party: Order number: Item 10 material: M3 Route: ---

C1 ---

Order: Incompletion log

F2

Schedule line F3

Item 10

x

Missing data PO number Route

Schedule line F5 Item 20 material: M2 Route: 00001 Schedule line

Is called up: a) Automatically when saved b) Through the menu

 SAP AG 1999

An incompletion log is a list of all the data essential to your company in a sales document that has not yet been entered in the system.
You can define these data fields in Customizing for the incompleteness log.
The system goes directly from the incompletion log to the different views where you can then edit the incomplete data.


Incomplete Sales Documents Sales document type Sales document

Incompletion log

Sold-to party: C1 Smith New York Yes

Yes No

Still possible to save document ?

No

Is document complete ?

Block subsequent functions in document:

The document must be completely maintained

For example: - Create w/ reference - Shipping - Billing document  SAP AG 1999

In Customizing for sales document types, the incomplete messages field allows you to control whether incomplete sales documents can be saved or not. If this switch is not set, then the further course of the business process is determined from the status groups of the incompletion procedure.
The procedure controls what effects the incomplete data has on the process.
Examples  If the terms of payment are missing, the order can be delivered but it cannot be billed. At the same time, you will not be able to create a new order with reference to an incomplete order.  The incompletion log tells you if the purchase order number is missing, but you can continue to process the document.


Controlling the Incompletion Log Incompletion log Sales document header Sales document item Sales document schedule line Proced. 10 Inquiry and quotation 11 Order ...

Purchase order number Currency Terms of payment

Assignment Sales document type Proced. QT Quotation OR Standard order ZO Z-Order

10 11 11

 SAP AG 1999

The incompleteness log differentiates between the following levels:  Sales document header  Sales document item  Sales document schedule line
In each procedure you determine which fields are checked for completion.
You determine areas of validity by assigning procedures. For example, you can assign the incompletion procedure for the sales document header, using the sales document type.  Procedure at header level -> Sales document type  Procedure at item level -> Item category  Procedure at schedule line level -> Schedule line category
You can also flag partner functions, texts and condition types in pricing as mandatory. If these entries are then missing, a note will appear in the incompletion log.


Status of Incomplete Sales Documents

Status group

General

Delivery

Billing

Pricing

(Sales)

01

X

02

X

03

X

X X

. . . Proced.

65 Order

Field PO number Currency Terms of payment

Status group 01 03 03

 SAP AG 1999










Incomplete document data affects further processing in different ways. A status group is assigned to each field in the incompletion procedure. When you define the status groups, you decide which steps should be prevented if data is missing. Examples  Incomplete for delivery -> No delivery is possible  Incomplete for billing -> No billing is possible  Incomplete for pricing -> No order confirmation or billing are possible A status group can contain any number of these effects. This allows you to control the effect of incomplete data separately for each field.

Lists of incomplete orders Incomplete orders Selection via Created by LO605-## Start

List Order 4231 Order 6574 Order 7019

Selection

Save

Order:

6574 Sold-to party: C1 Item

Material Quantity

10

M1

10

20

M4

15

Review data  SAP AG 1999

Every employee can list all of the incomplete sales orders that they have created. They can also display certain documents that have been blocked for a particular step in a selection screen, such as a list of all the documents blocked for shipping due to incompleteness.
Incomplete orders can be then called up from the list and completed. When you have finished processing, the system automatically returns to the list of incomplete documents.


Incompletion: Summary

You are now able to:

 Explain the incompletion log and process incomplete orders  Adjust the incompletion log in Customizing to meet your requirements

 SAP AG 1999

Materialdetermination / Product Selection and Material Lists

R

 SAP AG

Material Determination and Listing / Exclusion

Unit Contents:

 Material determination and  Product selection  Material listing and  Material exclusion

 SAP AG 1999

Material Determination: Objectives

At the conclusion of this unit, you will be able to:

 Use the functions for material determination and product selection as well as material listing and material exclusion  Explain how to configure Customizing so that these functions meet your needs  Create master records  Understand and analyze the settings for these functions in the sales document

 SAP AG 1999

Determining materials

Determining materials Material entered

Substitute material

4711

M1

Order Item

Material

10

4711 M1

 SAP AG 1999















Material determination provides you with a tool for automatically exchanging materials in the sales document. The condition technique provides you with greater flexibility in material determination. When you process a document, the system automatically searches for valid master records that you created previously in material determination. You can assign a substitution reason to every master record in material determination that defines how the material should be determined. You define the substitution rules in Customizing. Examples in the standard system include:  Reason for substitution 0002: Customized material  Reason for substitution 0003: EAN number You do not need a material master record for the material number that you are replacing. During order entry, the material ordered by the customer is replaced by the substitute defined in the master record. The system now continues processing with the substitute (for example, in the availability check, pricing, delivery, billing, and so on). Note: The item overview for Sales A contains information about the material that was originally entered as well as the reason for substitution.

Selecting Products Manually

Customer Miller

Customer Smith

Customer: Miller Product: 4712 1. 2. 3.

Customer: Smith Product: 4711

4714 4711 4712

1. 2. 3.

4711 4716 4712

Customer group

Wholesalers

Customer group: GH Product: 4711 4711

4712

4713

1. 2.

4712 4716

Materials

4714  SAP AG 1999

4715

4716

Master records for Determining materials

In some sectors of industry, the same products are sold in different packaging materials (for example, packaging for standard and promotion articles). Material master records exist in the system for managing these stocks. When you enter an order, you can use different material numbers for the same product.
We have extended the functions in manual and automatic product selection so that material determination can support this business practice:  Reason for substitution 0005: Manual production selection (list of default values)  Reason for substitution 0004 / 0006: Automatic product selection (depending on availability in order and delivery)
In manual production selection, (reason for substitution 0005), the system does not automatically replace the product. Instead, it displays a list of all of the substitution materials and other information in the master record. You can then select the required material from this list.
To simplify selection, the system displays the material quantities that can be confirmed on the customer's requested delivery date. If a material cannot be confirmed fully for the requested delivery date, the system displays the date on which the material can be completely delivered.


Master data

For material determination/product selection 02/01 - 05/01

Product 4711 1. Easter version

Product 4713

2. Standard product

Product 4711

09/09 - 12/31

Product 4711 1. Olympic version

Product 4714

2. Christmas packaging

Product 4715

3. Standard product

Product 4711

 SAP AG 1999

Maintain the master records for material determination in the master data menu for Sales and Distribution under Products.
You can use the condition technique to define the master data for material determination at any level. For example, you can create data records using the material number or a combination of the material and customer numbers.
When you process master records, you can:  Restrict the validity period of a record  Maintain separate entries for each key combination  Determine reasons for substitution  Save one or more substitutes per master record
If there is more than one material defined in the master record for material determination / product selection, the sequence in which they appear defines the priority that they have.


Automatic Product Selection

Order April 01 Product:  available

4711

10 PC 0 PC

Automatic selection

Product

4712

10 PC

Outbound delivery June 01 Product:  available

4711

10 PC 4 PC

Automatic selection

Product

4711

4 PC

Product

4714

6 PC

 SAP AG 1999















In automatic product selection (reasons for substitution 0004 and 0006), the system replaces the entered material automatically if it is not available. If automatic product selection is being used, the system may display (based on customizing) the entered and substituted material as main and sub-items in the sales order. When you enter an order, the system tries to fill the quantity of the order with the first material in the material determination master record. If there is not enough of this material, it fills the remaining quantity with the next material. You can choose whether or not you want to re-run material determination when the delivery is created. If material determination is re-run, the result of the substitution may change due to the new availability situation. You can use the product attributes in the material and customer master records to exclude a particular material from product selection. This means, for example, that all the materials that have been rejected in the customer master will not be included by the system when it determines a substitution material. The Partial confirmation of product selection allows you to deal with shortfall cases (in which only the available quantity is confirmed, and it is less than the order quantity) by passing the shortfall quantity on to materials planning. In this case, an additional sub-item is generated with a specifically defined material.

Automatic Product Selection - Master Data

Examples

Master Master records records for for Determining materials Determining materials

Material entered: A I

II

If material A isn't available, it is automatically replaced with material B.

The customer orders material C. You want to clear out material D. Material D is selected automatically as long as it is available.

1. 2.

A B

Material entered: C 1. 2.

D C

 SAP AG 1999

The sequence of the substitution materials in the master data influences the result of the automatic product selection in the order.
If you want the material that is first entered in the order to be included in the substitution, then you must enter it in the substitutions list.  Case A: The original material is in the first place in the list, and its available stock is included in the substitution. The system then refers to the available stock for the next material in the master record.  Case B: First, the system uses up the available stock for the materials that appear in the master record before the material that has been entered. Only when these stocks have been used up, does it include that material in the substitution.


Material Determination - Condition Technique (6) Sales doc. type OR

Procedure A00001 10 0 20 0

Order Document type: OR Sales organization: 1000 Dist. channel: 10 Division: 00 Customer: C1

A001 Material entered ...

Condition type A001 Access seq. A002

M-10

To 12/31/02

Access sequence A002 Access:10 2

Material: ...

Valid from 01/01/98

. . . Access:20 1

SlsOrg/DistCh/Ent.mat. Material entered

Table 2 → No record available Table 1 → Successful access Material determination master record Subst.reason: 0002 Entry: MAT-10 Valid from . . . To ... Substitution material:

M-10

 SAP AG 1999











The condition technique provides more flexibility in material determination and product selection. You can assign a material determination procedure to each sales document type. The procedure contains all of the Customizing information that the system needs for material determination. The procedure includes one or more defined condition types One access sequence (search strategy) is assigned to each condition type. Each access sequence consists of one or more accesses. Each access contains exactly one condition table. This represents the search key that the system uses to search for a valid master record. You can activate an analysis of the material determination in the sales document. The system then displays detailed information on how the materials were determined.

Material Listing

Payer P1

Sold-to party S1

Sold-to party S2

Master Master records records for for Material Listing Material Listing

Customer: S1 material: 4711 4712

Customer: R1 material: 4711 4713

Order Sold-to party:S1 Payer: R1 Item

Material

10 20 30

4711 4713 4714

Order Sold-to party:S2 Payer: R1 Item

Material

10 20 30

4711 4712 4713

 SAP AG 1999

Target: You want to ensure that your customer only receives CERTAIN MATERIALS. You enter these materials as a material listing. The material listing is controlled by the condition technique. In the above example, you have created master records with a key for the customer and material numbers. This key is delivered in the standard system. The access sequence for the condition type guarantees that the system searches for valid master records both for the sold-to party and the payer.
If the sold-to party is different than the payer in the sales order and if both partners have master records, the system first searches for the sold-to party's master record (first access). If it finds a valid master record, it stops searching even if the material you have entered is not listed. Any records listed for the payer are not taken into account. It the first search is unsuccessful, the system searches for the payer's master record.
You can also define your own keys, for example:  Customer group/material  Customer/product hierarchy
You define in the sales document type whether the system checks the material listing or not.





Material exclusion

Payer P1

Sold-to party S1

Sold-to party S2

Master Master records records for for material exclusion material exclusion

Customer: S1 material: 4711 4712

Customer: R1 material: 4711 4713

Order Sold-to party:S1 Payer: R1 Item

Material

10 20 30

4711 4713 4714

Order Sold-to party:S2 Payer: R1 Item

Material

10 20 30

4711 4712 4713

 SAP AG 1999

Target: You want to ensure that the customer does NOT receive certain materials. You enter these materials as a material exclusion. The material exclusion is also controlled with the condition technique. In the above example, you have created master records with a key for the customer and material numbers. This key is delivered in the standard system. The access sequence for the condition type guarantees that the system searches for valid master records both for the sold-to party and the payer.
If there is a material exclusion, the access sequence has a different effect than for material listings. If the sold-to party is different to the payer in the sales order and if both partners have master records, the system first searches for the sold-to party's master record (first access). If the system finds a valid master record, the reference to the material is prevented and the system stops searching. It does not check the payer's master record. It the first search is unsuccessful, the system searches for the payer's master record. If the system finds a valid master record, the reference to the material is prevented.
You can define whether the material exclusion is checked in the sales document type.





Material Determination: Summary

You are now able to:

 Use the functions for material determination and product selection as well as material listing and material exclusion  Explain how to configure Customizing so that these functions meet your needs  Create master records  Understand and analyze the settings for these functions in the sales document

 SAP AG 1999

Free Goods

R

 SAP AG

Free Goods

Unit Contents:  Exclusive and inclusive bonus quantities  Master data  Free goods condition technique  Free goods in statistics and Controlling

 SAP AG 1999

Free Goods: Objectives

At the conclusion of this unit, you will be able to:

 Use the free goods functions in your sales process  Enter master records for exclusive and inclusive bonus quantities  Explain how to configure the Customizing settings for free goods

 SAP AG 1999

Exclusive and Inclusive Bonus Quantities (2)

Inclusive BQ on cart e e fr One hese of t

Exclusive

+

BQ

 SAP AG 1999












In industry sectors such as retail, the chedmicals industry or consumer goods industry, it is common to provide discounts in the form of free goods. Free goods can be part of the order quantity not included in the invoice. This is called an inclusive bonus quantity. The ordered goods and the free goods both involve the same material. The quantity units of the free goods and ordered goods must be the same. Free goods can also take the form of extra goods that are free of charge. These are called exclusive bonus quantities. In exclusive bonus quantities, the extra goods are delivered free of charge and are not typically included in the invoice. This can either be an additional quantity of the goods ordered or it can be another article. The exclusive free goods appear in the SD document as an individual, free-of-charge item.

Free Goods in the Sales Order

Order

Inclusive BQ

Order

Exclusive BQ

Sold-to party:

C1

Sold-to party:

C2

Pricing date:

May 08

Pricing date:

May 08

Delivery date:

May 15

Delivery date:

May 15

Item HI

Material Quant. ICat

10 20

10

Item HI

Material Quant. ICat Eggs

5

TAN

Duck

1

TANN

Eggs

4

TAN

10

Eggs

1

TANN

20

10

 SAP AG 1999














Both types of free goods are treated in the same way in the sales order. The material that has been ordered is entered as a main item, the free goods material is automatically displayed as a sub-item. The item category determines how the the item is controlled later in the business process (for example, for delivery or pricing). Item categories TAN and TANN are used in the standard SAP system. The system determines them automatically by accessing the relevant condition records. The system then accesses the free goods master record with the pricing date. As in earlier releases, you can also entere free goods by manually entering data in the higher-level item and item category fields (TANN). However in this case, the system does not refere to the free goods master reocrd, and settings such as automatically reducing the quantity of the main item or for the delivery are missing. The system re-reads the free goods master record in the sales order if the quantities in the main item change or if the pricing date changes. The system then deletes the sub-items and re-creates them. Any manual changes to the free goods quantity are lost. If pricing is re-run in the sales order, it does not affect the free godos determination.

Free Goods - Master Data

SlsOrg DistChan Cust.

1000

30

10

Material

C1

Valid from: July 1

To: October 30

Material Min.

At/From Adit. in % Add. quantity

M1 Eggs

9 CAR

20

M1

1 PC 10 M2 Duck

ReR D

L

1 E 2 Addition

 SAP AG 1999













The condition technique is used for free goods. Free goods is regarded as a supplement to the pricing agreement for a material. You maintain the free goods in the master records for sales by:  Using a different menu entry  Going to Prices and Discounts/surcharges when maintaining the master records You can define master records for free goods at any level, for example, material, customer / material, price list category / currency / material or customer hierarchy / material. You can restrict master records for one level in many different ways:  Validity period: The condition is only valid within this period  Lowest quantity: The condition comes into affect when this quantity has been exceeded  Delivery control: See next page  Calculation type: See following page  Scales You can process different master data with the same key for inclusive and exclusive bonus quantities are the same time. You only need to press a button to switch between the two types of discount. When you enter an exclusive bonus quantity, an extra entry line appears where you can enter the good if it is not the same as the ordered material.

Free Goods in Deliveries Part. delivery Order Customer: C1

Part. delivery

Customer: C1

C1 Item Customer: Material Item

Material

10

10

M1

20

20

M2

NR

Delivery Settings for Free Goods A delivery takes place...

Part. delivery M1 M2 NR Item Customer: Material C1 10

M1

20

M2 Item

NR Material

10

M1

20

M2

NR

blank Regardless of main item (MI) A

only if main item is partially delivered

B

only if main item is completely delivered

C

only with (part of) main item

E

as part of main item quantity

 SAP AG 1999

The free goods are automatically copied into the delivery. Free goods determination does not take place in the delivery. Once partial deliveries have been shipped, you cannot change any quantities or dates in the order. It this data changes, the order item has to be rejected and re-entered.
In the master record for the free goods, you can finetune the delivery settings for the free goods. The following five options are available:  Blank The free goods item is processed independently of the main item  A The free goods can be delivered if part of the ordered quantity is being delivered  B The free goods can be delivered if the ordered quantity is being completely delivered  C The free goods can only be delivered with at least some of the ordered goods  E Changes to the ordered material in the delivery automatically mean that the quantity of free goods delivered changes in proportion




Free Goods - Calculation Rule

 Rule 1:

Prorated

 Rule 2:

Related to units

 Rule 3:

Whole units

 Rule ##:

Your own rule

 SAP AG 1999











When you specify a calculation rule, you decide how the system determines the free goods quantity from the additional and document quantities. The free goods quantity is the quantity that is calculated from the discount quantity (not the minimum quantity). The additional quantity is the quantity delivered free-of-charge. The document quantity is the quantity entered by the person creating the sales order. Three calculation rules are provided in the standard system. The following example describes how they work: Für eine Naturalrabattmenge von 100 Stück gewähren Sie eine Rabattmenge von 20 Stück. The customer orders 162 units (document quantity).  Rule 1 prorated: 32 units free goods [ 162*(20/100) = rounded down ]  Rule 2 unit-related: 20 units free goods [ 100*(20/100) = rounded down ]  Rule 3 whole units: 0 units free goods [ 162 is not a complete unit of 100] Calculation rules are stored in the system in the form of ABAP/4 code. You can also define your own rules (transaction VOFM, under menu entry, formulas).

Free Goods - Statistics and Controlling

Examples for Transferring Information to CO-PA

1 MI

Quantity

SD CO

Price Discount VPRS Revenue Sales ded. Costs

10 100

2 SI

1

MI

SI

MI

10 100

1 20 - 20 5 20 - 20 5

10 100

40 100

5

40 100

40

5

40

SAP Standard

3

TANN • Pricing: B • FG100 w/ req.55

SI

1

45  100 45 LF → F1 TANN • No pricing

 SAP AG 1999





You can see detailed information about free goods in the Profitability Analysis and Statistics. The revenues, sales deductions and costs of free goods can be transferred to Profitability Analysis (CO-PA) in different ways, shown in the examples below. (MIt = main item, SIt = sub-item)  Scenario 1 (SAP standard system) MIt : Not influenced by free goods SIt: Pricing de-activated, calculation price (VPRS) configured as costs.  Scenario 2 MIt : Not influenced by free goods SIt: Pricing for item category TANN active with setting B (in the costing procedure, condition type FG100 calculates a 100% discount through requirement 55 at level 819), discount reduces revenues, the transfer price is set as the costs.  Scenario 3 MIt : Cumulation of calculation price for lower-level item configured at main item level (in copying control Delivery -> Billing document), accumulated clearing price set as costs,SIt: Pricing deactivated

Free Goods - Condition Technique Sales area 1000 10 00 Doc. procedure A Cust. procedure 1

Procedure NA0001 10 1 ...

NA00 Free goods

Order

Condition type NA00 Access seq.

Valid from

To 1Document

Access sequence NA00 Access:10 05 Material Access:20 10 SlsOrg/DistCh/Cust./Mat. Condition records Table 05 → No record available Table 10 → Successful access

type: OR Sales organization:1000 Dist. channel: 10 Division: 00 C1 2Customer: Main item

TAN

Sub-item

TANN

1000 10 C1 M1 ... ... ... ... ... ...

 SAP AG 1999













The condition technique provides greater flexibility for using the free goods functions. The system uses the information about the sales areas, document determination procedure (from the sales document type) and customer determination procedure (from the customer master) to determine the free goods determination procedure. The procedure contains a list of the condition types for the free goods. One access sequence (search strategy) is assigned to each condition type. Each access sequence consists of one or more accesses. Each access contains exactly one condition table. This represents the search key that the system uses to search for a valid master record. If the search is successful, the system generates a sub-item for the free goods in the document. The item category is assigned with the item category usage FREE. Pricing for both items is controlled with the item category as normal. You can activate an analysis of the free goods determination in the sales document. The system then displays detailed information on how the free goods were determined.

Free Goods: Summary  Free goods can take the form of exclusive or inclusive

bonus quantities.  When you enter a document, the system searches for valid

master records. The free-of-charge items are automatically added to the document as sub-items.  Free goods are controlled by the condition technique,

which provides a high degree of flexibility.

R

 SAP AG