AVAILABILITY CHECK

1. INTRODUCTION 1.1. Availability Check

Availability Check in SAP is determining if the desired delivery quantity can be met on the requested delivery date.

1.2. Requirements

Requirements are planned outward movements of stock. Sales transfers the information on materials ordered as requirements to material requirements planning.

1.3. Transfer of Requirements

The transfer of requirements informs production that goods must be produced, or advises purchasing that purchase requisitions have been created for which purchase orders must be created and sent to the suppliers. An availability check can only be carried out if these requirements are transferred.

1.4. Available to Promise [ATP]

The ATP quantity is calculated from the warehouse stock, the planned inward movements of stock (production orders, purchase orders, planned orders) and the planned outward movements of stock (sales orders, deliveries, reservations).

1.5. Replenishment Lead Time [RLT]

Replenishment lead time is the time required to make the material available. That is it is the time needed to order or produce the requested material. It is defined in MRP 3 view of MMR.

2. TYPES OF AVAILABILITY CHECKS 2.1. Types of Availability Checks

There are three types of availability checks in SAP.

1. Check against ATP quantities 2. Check against product allocation 3. Rule based Availability Check

2.2. Check on the Basis of the ATP Quantities

This type of check is performed dynamically for each transaction, taking into account the relevant stock and planned goods movements with or without replenishment lead time. Planned independent requirements are not taken into account here.

2.3. Check against Product Allocation

This type of check is based on certain predefined distribution quantity of products to Customers. Product allocation facilitates period-based distribution of products for certain customers or regions. This ensures, for example, that when production is low, the first customer does not get the full amount, resulting in following sales orders not being confirmed or being confirmed far too late.

2.4. Rule based Availability Check

Rule based Availability Check is based on certain rules like carrying out an availability check in several plants and with several alternative materials. This availability check takes place in the stand-alone APO planning system (Advanced Planner and Optimizer) from SAP.

2.5. Availability Check Including Replenishment Time

Replenishment lead time is only included in the check performed on the basis of the ATP quantity. Availability is only checked up to the end of replenishment lead time. If the material availability date is calculated on the basis of the current date to lie after the replenishment lead time for the item, the item itself can be confirmed despite insufficient stock being available. In this case, the system assumes that any quantity requested by the customer can be procured by the material availability date and considers the goods to be available.

3. SCHEDULING FOR AVAILABILITY CHECK IN SD

3.1 Requested Delivery Date

Requested delivery date is the date on which the material should be delivered to the customer at his location.

3.2 Date for Availability Check

Availability is checked on the material availability date.

3.3 Material Availability Date

Material Availability date is the date on which the material should be available in order to confirm the customer’s requested delivery date. On this date, you must begin picking, packing, labeling, and loading the goods.

It is determined by carrying out backward scheduling from the customers requested delivery date.

3.4 Backwards Scheduling

Backward Scheduling is the scheduling of delivery related activities in the backward direction from the requested delivery date to determine Material Availability date.

3.5 Forward Scheduling

Forward Scheduling is the scheduling of delivery related activities in the forward direction from Material Availability Date to the requested delivery date.

4. PREREQUISITES FOR CARRYING OUT AVAILABILITY CHECK IN SD

4.1 Requirements Class

i. The availability check must be switched on at requirements class level.

ii. The requirements class contains all control features for planning such as relevance for planning, requirements planning strategy and requirements consumption strategy.

4.2 Requirements type

i. A requirements type must exist by which the requirements class can be found.

ii. Various requirements are identified by their requirements type. The requirements type refers to the requirements class and its control features.

4.3 Delivering Plant

A plant must be defined at document item level

4.4 Schedule Line Category

Av. Ch. must be switched on at Schedule Line Category [only for Sales Documents]

4.5 Checking Group

i. A checking group must be defined in the material master record on the Sales/plant data screen in the Availability check field.

ii. The checking group controls whether the system is to create individual or collective requirements in sales and shipping processing.

4.6 For Deliveries

The delivery item category can be used to control whether an availability check takes place in deliveries.

4.7 Checking Rule

Checking rule is used to control the scope of the availability check for each transaction in sales and distribution.

4.8 Other General Controls

Strategy Group, MRP Group and Planning Strategies are other controls used in the process of Availability Check.

5. CONFIGURATION FOR AVAILABILITY CHECK IN SD

Configurations at IMG level [Basic Functions/TOR & Av. Ch]S.No Configuratio

nDescription Examples/

Remarks01 Checking

GroupDefine Checking Group and specify whether check to be carried out and set for Individual/Collective requirements.

Ex : 01 for Coll. Req. 02 for Ind. Req. etc.

02 Requirement Class

Switch on Availability Check for the Requirement Class.

Ex – For Requirement Class 041.

03 Schedule Line Category

Switch on Availability Check at Schedule Line Category level.

Ex : For CP, C1 etc.

04 Control for Availability

Check

Assign Checking Rule to Checking Group and define the scope of Availability Check. The scope includes various stock [safety, transfer etc], Inward/Outward movements, RLT etc.

Checking Rules are predefined in SD.Ex : A for SD Order B for SD Delivery etc.

Other Settings01 Default Value Checking Group set for [Material

Type + Plant ] as default value. Used only if not mentioned in MMR.

Ex : FERT + Plant1000 = Ch. Gr. 01.

02 Material Block Block indicator can be activated if others have to be blocked from carrying out Av. Ch while it is being checked.

A –Order, B – Delivery Note, C-Reservation. These initiators cannot be changed.

03 Item Category Availability Check can be activated or deactivated at Item Category level.

Ex : REN can be switched off.

04 System Responses

Based on Sales Area, system responses can be set in Av. Ch. Rule, should there be no/insufficient stock[after Av. Ch].

Ex : A dialog box for selecting one time / complete / delevery proposal.

6. SCOPE OF AVAILABILITY CHECK

6.1 Factors for defining the Scope of Availability Check

Checking rule in combination with the checking group controls the scope of the availability check.

6.2 Elements that can be considered in the Scope

The following elements can be included in the availability check:

a. Stock

safety stock stock in transfer quality inspection blocked stock

b. Inward/Outward movement of goods

purchase orders purchase requisitions planned orders production orders reservations dependent reservations dependent requirements sales requirements delivery requirements

6.3 Replenishment Time in Scope

Replenishment lead time can be included in the check performed on the basis of the ATP quantity. Availability is only checked up to the end of replenishment lead time.

7. REACTIONS TO AVAILABILITY CHECK

7.1 Introduction

If the goods ordered by the customer are not available on the requested date, the system branches automatically during sales document processing to Availability Control screen where the following proposals are offered for selection:

i. One-time delivery on the requested delivery dateii. Complete deliveryiii. Delivery proposal

This is on account of configuration in IMG based on Sales Area and Availability Check Rule.

7.2 One Time Delivery

If stock of the material is available to make a delivery on the requested delivery date, the stock quantity is confirmed here. If there is no stock available, confirmed quantity zero is displayed.

7.3 Complete Delivery

i. If there is sufficient stock available at a later date to cover the required quantity in the sales document, the system proposes the date here.

ii. If the system determines that complete delivery cannot be made at a later date, no date is proposed in this section.

7.4 Delivery Proposal

The system checks whether and for which dates partial deliveries can be made. Partial deliveries are displayed for different dates. These dates are based on the planned inward and outward movements of stock.

Batch Management

1.0 Batch

1.1 Definition

Batch is a quantity or partial quantity of a certain material or product that has been produced according to the same recipe. It represents a homogenous unit with unique specifications.

Note :

• Batches are always assigned to a material • Batches can only be used for materials that are to be handled in batches

1.2 Purpose

In various industries – particularly the process industry – you have to work with homogenous partial quantities of a material or product throughout the logistics quantity and value chain

There are various reasons for this:

• Legal requirements (for example, the guidelines set out by GMP (Good Manufacturing Practice) or regulations on hazardous material

• Defect tracing, callback activities, and regression requirement • The need for differentiated quantity-and value-based Inventory Management

(for example, due to heterogeneous yield/result qualities or varying constituents in Production.

• Differences in usage and the monitoring thereof in materials planning in SD and Production.

• Production or procedural requirements (for example, settlement of material quantities on the basis of different batch specifications).

2.0 Batch Level and Number Assignment

2.1 Batch Level

In the SAP System, the batch number uniquely identifies the batch. You use the batch level to specify whether the batch number for a material is unique in one plant, or in all plants.

• Plant levelThe batch number is unique in connection with the plant and material.

The batch number is only known in the plant in which it was created if the stock is transferred to another plant, the batch is unknown in the recipient plant and the system does not adopt any data. You have to recreate and specify the batch in the receiving plant; that is, the same batch number may have different specifications in several plants.

• Material level:The batch number is unique in all plants in connection with the material.

The same batch number has the same meaning for the material in all plants. One batch number cannot have different specifications in different plants. During stock transfer to another plant, the specification of the batch is known in the destination plant even if the batch is placed into storage in that plant for the first time.

• Client level:The batch number is unique in the whole client. A batch number can only be assigned once in the client. You cannot assign the same batch number for different materials

2.2 Batch Number Assignment

The batch number may be assigned at different times, for example:

• During manual creation of a batch • When carrying out goods movements, for example, goods receipt or transfer

posting • During creation of a process or production order • When a usage decision is made in quality management • During quality analysis (due to aging, for example) • When creating a purchase order

3.0 Batches in Sales Processing

3.1 Sales Documents for Batches

For materials managed in batches individual batch numbers can be entered for the following documents:

• Pre-sales documents (such as inquiries or quotations) • Sales orders • Delivery

3.2 Batch Checks

If you enter a batch number directly into the sales document, system may carry out the following checks :

a. Availability of Batchb. Expiry Date for Batch etc.

4.0 Copying Batch Numbers

4.1 Copying Batch Numbers in Sales Documents

When a pre-sales document is copied to a sales order, any existing batch numbers are also automatically copied but cannot be changed in the sales order.

For a sales order with materials to be managed in batches that does not have a preceding document, batch numbers can be changed until subsequent documents, such as the delivery, have also been created.

4.2 Copying Batch Numbers from Sales Order to Deliveries

When copying a sales order with batch numbers to a delivery, all batch data is automatically copied. The batch numbers which are copied to the delivery cannot be changed.

when creating a delivery, if the system discovers that the copied batch is not valid, a warning is issued by the system. In this case, the batch specification must be changed in the sales document source

4.3 Automatic Batch Determination in Delivery Documents

If no batch number is proposed in the sales order for an item with material to be handled in batches, automatic batch determination can be carried out in the delivery.

5.0 Splitting Batches in a Delivery

Batch split describes the situation when you want to specify quantities from more than one batch for a particular delivery item.

To carry out batch split in a delivery, proceed as follows:

In the delivery, mark the item for which you want to split batches and choose Goto Item Batch split.

6.0 Master Data for Materials handled in Batches

6.1 Batch Management Indicator

If a material is managed in batches, you indicate this fact in the material master record in either the Purchasing or Plant data/storage 1 views.

6.2 Availability Check

In the General Sales view, or in the MRP view, choose availability check group CH. The replenishment lead time should not be considered in the dynamic availability check for batches, since batches are not reproducible.

6.3 Classification

A Class must be assigned with Class type 022 or 023.

7.0 Batch Specifications

7.1 Definition

Batch specifications describe the technical, physical and/or chemical properties of a batch. You store batch specifications, such as batch status or active ingredient potency, as characteristics in the Classification System.

Example : Batches of car paint are specified by color value, viscosity and expiration date. The characteristics color value, viscosity and expiration date for these properties are stored in the classification system and the respective values are assigned to each individual batch.

7.2 Specifications in the Classification System [Characteristics]

You define properties of the material and its batches and store them as characteristics in the classification system.

7.3 Classes

You create classes for the material and the batches and assign the characteristics to the classes.

7.4 Class Type

The class must be assigned to a class type. There are two class types of the category Batch for batches and their materials:

o 022 at plant level o 023 at client or material level

7.5 Material Master Record

Material master record is to be created and assigned the desired class to the material and assign characteristics to the material. Only one Class may be assigned for the Class type 022 or 023.

The replenishment lead time should not be considered in the dynamic availability check for batches, since batches are not reproducible. In the General Sales view, or in the MRP view, choose availability check group CH.

8.0 Path for creating various objects

8.1 Characteristics [CT04]

Cross Application Components → Classification → Master Data → Characteristics

8.2 Classes [CL01]

Cross Application Components → Classification → Master Data → Classes

8.3 Batch [MSC1N]

Logistics → Central Functions → Batch Management → Batch → Create

9.0 Creating a Batch Master Record

9.1 Creating a Batch Master Record Manually

To create a batch master record manually, choose Logistics Central Functions Batch Management Batch Create

9.2 Creating a Batch Master Record in the Background

The system creates a batch master record in the background in the following procedures:

• The first time goods are received for a batch • During creation of a process or production order • When a usage decision is made in quality management • During a recurring inspection • For transfer postings (when you want to split a batch, for example) • When creating a purchase order

10.0 Batch Determination

10.1 Batch determination in Supply Chain Process

Batch determination is used for all types of goods movements from the warehouse to find batches that meet defined specifications. It is used for the following areas :

i. Inventory Management (IM),ii. Production (PP/PP-PI)iii. Sales and Distribution (SD)iv. Warehouse Management System (WM)

10.2 Condition Technique

Condition Technique is used for the determination of Batches.

11.0 Batch Determination in Sales and Distribution

11.1 Points for Batch Determination

There are four points at which you should use batch determination in Sales & Distribution. These are:

• Quotations • Quantity contracts • Sales orders (or scheduling agreement) • Delivery

11.2 Path for Configuration

IMG → Logistics General → Batch Management → Batch Determination and Batch Check

11.3 Path for Condition Records

Logistics → Central Functions → Batch Management → Batch → Create

12.0 Batch Determination – Configuration[for Sales and Distribution]

12.1 Standard Condition Tables

• 001 Material

• 002 Customer/material

• 003 Customer/plant/material

• 004 Destination country/material group

• 005 Destination country

• 006 Material group

12.2 Standard Access Sequences

Access sequences SD01, SD02, and SD03 are defined in the standard SAP R/3 System

12.3 Standard Strategy types [Condition Types]

Strategy types SD01, SD02, and SD03 are defined in the standard SAP R/3 System

12.4 Standard Batch Search Procedure

The standard SAP R/3 System contains search procedure SD0001

12.5 Allocate Batch Search Procedure/Activate Check

Batch search procedures are assigned to the combinations of sales organization, distribution channel, division and sales document type. [1000 10 00 OR → SD0001].

Set indicator Check batch, if the system has to check manually entered batches

12.6 Activate Automatic Batch Determination in SD

Auto batch determination indicator is set for those order and delivery item categories for which batch determination is to be triggered automatically.

FREE GOODSFREE GOODS

1.01.0 BASICSBASICSFREE GOODSFREE GOODS

S.NoS.No Item Item DescriptionDescription RemarksRemarks11 Free GoodsFree Goods Free Goods in SAP is giving certainFree Goods in SAP is giving certain

material/quantity as free ofmaterial/quantity as free of charge based on Ordercharge based on Order quantity.quantity.

This may depend onThis may depend on some conditionssome conditions

22 Types of FreeTypes of Free GoodsGoods

Free Goods are of two types in SAP,Free Goods are of two types in SAP, Inclusive Free Goods andInclusive Free Goods and Exclusive Free GoodsExclusive Free Goods

33Inclusive FreeInclusive Free Goods Goods

If the Free Goods quantity is a part of OrderIf the Free Goods quantity is a part of Order quantity, it is said to be Inclusive Free Goods.quantity, it is said to be Inclusive Free Goods.

Also called asAlso called as Inclusive BonusInclusive Bonus Quantity.Quantity.

Example: Buy 10 get 1 free is the Policy.Example: Buy 10 get 1 free is the Policy. Customer is charged for 9 qty. only and one isCustomer is charged for 9 qty. only and one is given free.given free.

The total quantityThe total quantity customer gets is 10.customer gets is 10.

44Exclusive FreeExclusive Free Goods Goods

If the Free Goods quantity is in addition toIf the Free Goods quantity is in addition to Order quantity, it is said to be Order quantity, it is said to be ExclusiveExclusive Free Free Goods. Goods.

Also called asAlso called as Exclusive BonusExclusive Bonus Quantity.Quantity.

Example: Buy 10 get 1 free is the Policy.Example: Buy 10 get 1 free is the Policy. Customer is charged for 10 qty. and one isCustomer is charged for 10 qty. and one is given extra.given extra.

The total quantityThe total quantity customer gets is 11.customer gets is 11.

For Exclusive Free Goods, the material beingFor Exclusive Free Goods, the material being given free could be different from Orderedgiven free could be different from Ordered material.material.

For Material X,For Material X, Material Y may beMaterial Y may be given free.given free.

55 ConditionsConditions

Free goods agreement is maintained like aFree goods agreement is maintained like a condition. These agreements are maintainedcondition. These agreements are maintained as Master Data which is copied into Salesas Master Data which is copied into Sales Documents. Documents.

Transaction Code forTransaction Code for Master Data : VBN1Master Data : VBN1

66ConditionCondition TechniqueTechnique

Condition Technique could be used toCondition Technique could be used to determine the Free Goods based on thedetermine the Free Goods based on the appropriate levels. For example, atappropriate levels. For example, at customer/material level or customercustomer/material level or customer hierarchy/material level etc..hierarchy/material level etc..

In the standardIn the standard system, conditionssystem, conditions may be maintainedmay be maintained at customer/materialat customer/material level.level.

2.02.0 MASTER DATA MAINTENANCEMASTER DATA MAINTENANCE

MASTER DATA FOR FREE GOODSMASTER DATA FOR FREE GOODSS.No Data Entry Description Examples/

Remarks0101 PathPath Logistics Logistics →→ SD SD →→ Master Data Master Data →→ Conditions Conditions →→

Free Goods Free Goods →→ Create Create--

0202 T-CodeT-Code VBN1VBN1 --

0303 Initial ScreenInitial Screen Enter Condition TypeEnter Condition Type Ex : Discount.Ex : Discount. Type – NA00Type – NA00

0404 Overview ScreenOverview Screen

Select Inclusive or Exclusive as desired bySelect Inclusive or Exclusive as desired by clicking on the Button on Application Tool Bar. clicking on the Button on Application Tool Bar. --

Specify a validity period for the free goodsSpecify a validity period for the free goods agreementagreement --

Specify a minimum quantity that Customer maySpecify a minimum quantity that Customer may Order for Free Goods eligibility Order for Free Goods eligibility

Ex : Min. OrderEx : Min. Order Qty. 20.Qty. 20.

Specify Quantity and Unit of measure for whichSpecify Quantity and Unit of measure for which free goods will be given.free goods will be given.

Ex : For every 5Ex : For every 5 PCs free somePCs free some qty. is givenqty. is given

Specify the quantity of Goods being given asSpecify the quantity of Goods being given as free along with Unit of measurefree along with Unit of measure

Ex : 1 PC is free Ex : 1 PC is free

Maintain Calculation RuleMaintain Calculation Rule By default 1 isBy default 1 is maintained.maintained.

For Exclusive Free Goods additional Material,For Exclusive Free Goods additional Material, different from Ordered Material, being givendifferent from Ordered Material, being given free can also be maintainedfree can also be maintained

Not applicable forNot applicable for Inclusive FreeInclusive Free GoodsGoods

If required maintain other information and clickIf required maintain other information and click on save buttonon save button --

3.03.0 FIELDS IN THE MASTER DATA SCREENFIELDS IN THE MASTER DATA SCREEN

FIELDS IN THE MASTER DATA OVERVIEW SCREENFIELDS IN THE MASTER DATA OVERVIEW SCREENField descriptionField description ContentsContents

MaterialMaterial Material, for which free goods is to be grantedMaterial, for which free goods is to be granted

Minimum quantityMinimum quantity Minimum quantity for which free goods can be grantedMinimum quantity for which free goods can be granted

FromFrom Quantity of sales materialQuantity of sales material

FGQFGQ Quantity unit of Sales materialQuantity unit of Sales material

Free GoodsFree GoodsQuantity of free goods with reference to the quantity and quantity unit ofQuantity of free goods with reference to the quantity and quantity unit of the sales materialthe sales material

AQUAQU Quantity unit of the free goods additional quantityQuantity unit of the free goods additional quantity

RuleRule Calculation ruleCalculation rule

DD Delivery ControlDelivery Control

Additional MaterialAdditional Material Additional material (only available for entry in exclusive free goods)Additional material (only available for entry in exclusive free goods)

4.04.0 CALCULATION RULECALCULATION RULE

CALCULATION RULE FOR FREE GOODSCALCULATION RULE FOR FREE GOODSS.No Item Description Examples/

Remarks

0101 Calculation RuleCalculation Rule The calculation rule defines the manner in whichThe calculation rule defines the manner in which the free goods amount is calculated from the freethe free goods amount is calculated from the free goods quantity, additional quantity and thegoods quantity, additional quantity and the document quantity.document quantity.

--

0202 StandardStandard CalculationCalculation RulesRules

Calculation RulesCalculation Rules DescriptionDescription

--Rule 1Rule 1 Proportional [pro-rata]Proportional [pro-rata]Rule 2Rule 2 Unit ReferenceUnit ReferenceRule 3Rule 3 Whole UnitWhole Unit

0303 Enhancements /Enhancements / RoutinesRoutines

We can enhance the rules for determining theWe can enhance the rules for determining the free goods quantity by modifying existingfree goods quantity by modifying existing routines or adding new routinesroutines or adding new routines

Transaction :Transaction : VOFMVOFM

0404 Example forExample for Calculation RuleCalculation Rule

10 pieces of a material are granted as exclusive10 pieces of a material are granted as exclusive free goods for an order of 100 pieces. Afree goods for an order of 100 pieces. A customer orders 150 pieces. Depending on thecustomer orders 150 pieces. Depending on the rule used, the customer receives the followingrule used, the customer receives the following free goods quantity:free goods quantity:

--

CalculationCalculation RulesRules

DescriptionDescription Free GoodsFree Goods QuantityQuantity

Rule 1Rule 1 Proportional [pro-rata]Proportional [pro-rata] 1515Rule 2Rule 2 Unit ReferenceUnit Reference 1010Rule 3Rule 3 Whole UnitWhole Unit 1010

5.05.0 LIMITATIONS OF FREE GOODSLIMITATIONS OF FREE GOODS

LIMITATIONSLIMITATIONSS.NoS.No Item Item DescriptionDescription RemarksRemarks11 1:1 Ratio1:1 Ratio

[Exclusive][Exclusive]Free goods can only be supported on a 1:1Free goods can only be supported on a 1:1 ratio. For an order item another different Itemratio. For an order item another different Item may be given free.may be given free.

Not Possible :Not Possible :For X and Y, Z isFor X and Y, Z is free etc.free etc.

22 MaterialMaterial StructuresStructures

Free goods are not supported in combinationsFree goods are not supported in combinations with material structures.with material structures.

Ex : ProductEx : Product selection, BOM,selection, BOM, variants with BOMvariants with BOM explosionexplosion

33 DocumentDocument CategoryCategory

Free goods are only supported for sales ordersFree goods are only supported for sales orders with document category C. with document category C.

Ex : Not supportedEx : Not supported with Credit Memowith Credit Memo Requests etc.Requests etc.

44 DeliveriesDeliveries Free goods are not supported for deliveriesFree goods are not supported for deliveries without reference to a sales order.without reference to a sales order.

Order ReferenceOrder Reference MandatoryMandatory

55 SpecialSpecial BusinessBusiness ProcessesProcesses

Free goods cannot be used for certain specialFree goods cannot be used for certain special business processes. business processes.

Ex : MTO, TPO,Ex : MTO, TPO, SchedulingScheduling Agreements etc.Agreements etc.

6.06.0 FREE GOODS DETERMINATIONFREE GOODS DETERMINATION

6.1 CONDITION TABLE6.1 CONDITION TABLES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition A Condition Table is a combination of fieldsA Condition Table is a combination of fields which form a key for a Condition Record.which form a key for a Condition Record. --

22 PathPathIMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Free Goods Free Goods →→ Condition Technique for Free Goods Condition Technique for Free Goods →→ Maintain Condition TablesMaintain Condition Tables

--

33 T-CodeT-Code V/N2V/N2 --

55 Entry ScreenEntry ScreenIn the entry screen, enter the desired TableIn the entry screen, enter the desired Table number otherwise system generates a numbernumber otherwise system generates a number automaticallyautomatically

--

55 Table NumberTable Number Users can create table from 501 to 999.Users can create table from 501 to 999. --

66 Standard TableStandard TableStandard Condition Table used is Table 10 whichStandard Condition Table used is Table 10 which has fields Sales Organization, Distributionhas fields Sales Organization, Distribution Channel, Customer and MaterialChannel, Customer and Material

Assigned toAssigned to Access SequenceAccess Sequence

NA00.NA00.

66 ProcessProcess

Select the fields from the list of allowed fieldsSelect the fields from the list of allowed fields [Field Catalogue] by double clicking the required[Field Catalogue] by double clicking the required fields which are reflected on the selected fieldsfields which are reflected on the selected fields and click on Generate Icon on Application Tooland click on Generate Icon on Application Tool Bar. Bar.

--

Note : The tables are created from the List of allowed fields. Note : The tables are created from the List of allowed fields.

6.2 ACCESS SEQUENCE6.2 ACCESS SEQUENCES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition

An Access Sequence is a search strategy whichAn Access Sequence is a search strategy which SAP system uses to search for condition recordsSAP system uses to search for condition records valid for a condition type.valid for a condition type.

The accessThe access sequence consistssequence consists of one or moreof one or more accessesaccessesIt determines the sequence in which the systemIt determines the sequence in which the system

searches for data. searches for data.

22 PathPathIMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Free Goods Free Goods →→ Condition Technique for Free Goods Condition Technique for Free Goods →→ Maintain Maintain Access SequenceAccess Sequence

--

33 CharactersCharacters Access Sequence is a 4 digit Alpha Numeric keyAccess Sequence is a 4 digit Alpha Numeric key --

44New AccessNew Access SequenceSequence

In the Application Tool bar select New EntriesIn the Application Tool bar select New Entries and define the desired Access Sequence.and define the desired Access Sequence.

A text can also beA text can also be added.added.

55 AccessesAccesses

Select the new Access Sequence and double clickSelect the new Access Sequence and double click on Accesses. System may not display anyon Accesses. System may not display any Accesses here. Accesses here.

An Access is likeAn Access is like serial numberserial number which is to bewhich is to be numbered withnumbered with some gaps.some gaps.

Again click on new Entries on Application ToolAgain click on new Entries on Application Tool Bar.Bar.Now we can add the desired condition tablesNow we can add the desired condition tables against each access.against each access.

66 FieldsFields

Select the first Access double click on fields.Select the first Access double click on fields. System may display all the fields in the conditionSystem may display all the fields in the condition table maintained for that Access. Similarly eachtable maintained for that Access. Similarly each access is selected and fields are initialized.access is selected and fields are initialized.

--

77Standard AccessStandard Access SequenceSequence Standard Access Sequence maintained is NA00.Standard Access Sequence maintained is NA00. It has Table 10.It has Table 10.

88TablesTables arrangementarrangement

Tables in an Access Sequence are to be arrangedTables in an Access Sequence are to be arranged from the most specific to the most general table.from the most specific to the most general table. --

6.3 DISCOUNT TYPE [CONDITION TYPE]6.3 DISCOUNT TYPE [CONDITION TYPE]S.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition Discount Types in Free Goods similar toDiscount Types in Free Goods similar to Condition Types in Pricing.Condition Types in Pricing.

--

22 PathPathIMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Free Goods Free Goods →→ Condition Technique for Free Goods Condition Technique for Free Goods →→ Maintain Condition Type.Maintain Condition Type.

--

33 CharactersCharacters Condition TypeCondition Type is a 4 digit Alpha Numeric key is a 4 digit Alpha Numeric key --

44New ConditionNew Condition TypeType

Select a Condition Type which is similar to theSelect a Condition Type which is similar to the desired condition Type and click on New Entriesdesired condition Type and click on New Entries in the Application Tool bar. in the Application Tool bar. A text can also beA text can also be

added.added.Define a new Condition Type with 4 charactersDefine a new Condition Type with 4 characters and assign the new Access Sequence to it.and assign the new Access Sequence to it.

55StandardStandard Condition TypeCondition Type Standard Condition Type maintained is NA00.Standard Condition Type maintained is NA00. It has AccessIt has Access

Sequence NA00.Sequence NA00.

6.4 PRICING PROCEDURE [FREE GOODS PROCEDURE]6.4 PRICING PROCEDURE [FREE GOODS PROCEDURE]S.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition

Pricing procedure is the collection of desiredPricing procedure is the collection of desired Condition Types along with other controlCondition Types along with other control features.features.

Free GoodsFree Goods Procedure is alsoProcedure is also called as Pricingcalled as Pricing ProcedureProcedure

22 PathPathIMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Free Goods Free Goods →→ Condition Technique for Free Goods MaintainCondition Technique for Free Goods Maintain Pricing ProceduresPricing Procedures

--

33 CharactersCharacters Pricing Procedure Pricing Procedure is a 6 digit Alpha Numeric keyis a 6 digit Alpha Numeric key --

44New New PricingPricing ProcedureProcedure

Select a standard Select a standard Pricing Procedure Pricing Procedure which iswhich is similar to the desired similar to the desired Pricing Procedure Pricing Procedure and clickand click on Copy As Icon in the Application Tool bar. on Copy As Icon in the Application Tool bar. A text can also beA text can also be

added.added.Define a new Define a new Pricing Procedure Pricing Procedure with 6 characterswith 6 characters and assign the new Condition Types and alsoand assign the new Condition Types and also retain the required standard condition Types.retain the required standard condition Types.

55Standard FreeStandard Free GoodsGoods ProcedureProcedure

SAP Standard Free Goods Procedure is NA0001 SAP Standard Free Goods Procedure is NA0001 It has ConditionIt has Condition Type NA00.Type NA00.

6.5 CUSTOMER PRICING PROCEDURE6.5 CUSTOMER PRICING PROCEDURES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition

Customer Pricing procedure is a single digitCustomer Pricing procedure is a single digit alpha-numeric key assigned to customer masteralpha-numeric key assigned to customer master record and is used in Pricing Procedurerecord and is used in Pricing Procedure determinationdetermination

--

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Pricing Pricing →→ Pricing Control Pricing Control →→ Define and Assign Pricing Define and Assign Pricing Procedures Procedures →→ Define Customer Pricing Define Customer Pricing ProcedureProcedure

--

33 T-CodeT-Code OVKPOVKP --

44 CharactersCharacters Single digit alpha-numeric keySingle digit alpha-numeric key Ex : 1 - StandardEx : 1 - Standard

55New CustomerNew Customer PricingPricing ProcedureProcedure

Select a standard Customer Select a standard Customer Pricing ProcedurePricing Procedure and click on Copy As Icon in the Applicationand click on Copy As Icon in the Application Tool bar. Tool bar. A text can also beA text can also be

added.added.Enter any single digit number or a character andEnter any single digit number or a character and give a meaningful name and save.give a meaningful name and save.

66 CMRCMR This Customer This Customer Pricing Procedure is to bePricing Procedure is to be assigned to the required customer master records.assigned to the required customer master records.

Sales view ofSales view of Sales Area inSales Area in CMR.CMR.

6.6 DOCUMENT PRICING PROCEDURE6.6 DOCUMENT PRICING PROCEDURES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinitionDocument Pricing procedure is a single digitDocument Pricing procedure is a single digit alpha-numeric key assigned to Document Typealpha-numeric key assigned to Document Type and is used in Pricing Procedure determinationand is used in Pricing Procedure determination

--

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Pricing Pricing →→ Pricing Control Pricing Control →→ Define and Assign Pricing Define and Assign Pricing Procedures Procedures →→ Define Document Pricing Define Document Pricing ProcedureProcedure

--

33 T-CodeT-Code OVKIOVKI --

44 CharactersCharacters Single digit alpha-numeric keySingle digit alpha-numeric key Ex : A - StandardEx : A - Standard

55New New DocumentDocument PricingPricing ProcedureProcedure

Select a standard Select a standard DocumentDocument Pricing ProcedurePricing Procedure and click on Copy As Icon in the Applicationand click on Copy As Icon in the Application Tool bar. Tool bar. A text can also beA text can also be

added.added.Enter any single digit number or a character andEnter any single digit number or a character and give a meaningful name and save.give a meaningful name and save.

6.7 ASSIGNING DOCUMENT PRICING PROCEDURES6.7 ASSIGNING DOCUMENT PRICING PROCEDURESS.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition Document Pricing procedure is to be assigned toDocument Pricing procedure is to be assigned to required sales and billing document types. required sales and billing document types.

Ex : A – OREx : A – OR

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Pricing Pricing →→ Pricing Control Pricing Control →→ Define and Assign Pricing Define and Assign Pricing Procedures Procedures →→ Assign Document Pricing Assign Document Pricing ProcedureProcedure

--

33 T-CodeT-Code OVKJOVKJ OVTP for BillingOVTP for Billing

6.8 PRICING PROCEDURE [FREE GOODS PROCEDURE] DETERMINATION6.8 PRICING PROCEDURE [FREE GOODS PROCEDURE] DETERMINATIONS.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinitionPricing procedure is determined based on SalesPricing procedure is determined based on Sales Area, Customer Pricing Procedure and DocumentArea, Customer Pricing Procedure and Document Pricing Procedure. Pricing Procedure.

--

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Pricing Pricing →→ Pricing Control Pricing Control →→ Define and Assign Pricing Define and Assign Pricing Procedures Procedures →→ Define Pricing Procedure Define Pricing Procedure DeterminationDetermination

--

33New New PricingPricing ProcedureProcedure DeterminationDetermination

Select a standard combination of sales area,Select a standard combination of sales area, Customer Pricing Procedure and DocumentCustomer Pricing Procedure and Document Pricing ProcedurePricing Procedure and click on Copy As Icon in and click on Copy As Icon in the Application Tool bar. the Application Tool bar. . .

This is similar toThis is similar to General PricingGeneral Pricing ProcedureProcedure Determination.Determination.

Enter the desired values and the new PricingEnter the desired values and the new Pricing Procedure.Procedure.

MATERIAL DETERMINATIONMATERIAL DETERMINATION

7.07.0 BASICSBASICS

MATERIAL DETERMINATIONMATERIAL DETERMINATIONS.NoS.No Item Item DescriptionDescription RemarksRemarks

11MaterialMaterial DeterminationDetermination

Material determination enables the automaticMaterial determination enables the automatic substitution of materials in sales documentssubstitution of materials in sales documents during sales order processingduring sales order processing

It is triggered when aIt is triggered when a material is entered inmaterial is entered in the order.the order.

22 ExamplesExamples

1.1. As sales promotion the system can,As sales promotion the system can, during sales order entry, automaticallyduring sales order entry, automatically substitute a material that hassubstitute a material that has promotional packaging.promotional packaging.

2. Customer-specific product numbersCustomer-specific product numbers with your own material numbers with your own material numbers etc.etc.

3. International Article Numbers (EANs)International Article Numbers (EANs) with your own material numberswith your own material numbers..

4.4. Substituting discontinued materialsSubstituting discontinued materials with newer materials.with newer materials.

In the case ofIn the case of International ArticleInternational Article Numbers, you mustNumbers, you must also enter a unit ofalso enter a unit of measure for themeasure for the substitute materialsubstitute material

33DisplayingDisplaying MaterialMaterial EnteredEntered

The material entered can be viewed in Sales AThe material entered can be viewed in Sales A view in a Sales Document.view in a Sales Document.

Overview Screen :Overview Screen : Goto Goto → Item → Sales→ Item → Sales AA

44 ConditionsConditions

Master Data for Material Determination isMaster Data for Material Determination is maintained like conditions. Master Datamaintained like conditions. Master Data contains the details like the substitute materialscontains the details like the substitute materials and original materials etc.and original materials etc.

Transaction Code forTransaction Code for Master Data : VB11Master Data : VB11

55ConditionCondition TechniqueTechnique

Condition Technique could be used for MaterialCondition Technique could be used for Material Determination based on the appropriate levels.Determination based on the appropriate levels. For example, at material level or customerFor example, at material level or customer material level etc.material level etc.

In the standardIn the standard system, conditionssystem, conditions may be maintained atmay be maintained at material level.material level.

2.0 CREATION OF MASTER DATA2.0 CREATION OF MASTER DATA

Master Data

S.No Item DescriptionExamples/ Remarks

0101 PathPathLogistics →Logistics → Sales and distribution →Sales and distribution → Master data → ProductsMaster data → Products →→ MaterialMaterial DeterminationDetermination →→ CreateCreate

T-Code - T-Code - VB11VB11

0202 Initial ScreenInitial Screen Enter desired Determination TypeEnter desired Determination Type Ex : A001Ex : A0010303 Overview ScreenOverview Screen Enter the following data: Enter the following data:

– Validity period for the master record– Validity period for the master record– Material entered (the material you want – Material entered (the material you want the system to substitute with another) the system to substitute with another)– Substitute material.– Substitute material.

In the case ofIn the case of InternationalInternational Article Numbers,Article Numbers, a unit of measurea unit of measure must be enteredmust be entered

– Optionally, a reason for the substitution – Optionally, a reason for the substitution (the reason may appear in system (the reason may appear in system messages during sales order processing) messages during sales order processing)– If more than one Substitute materials are – If more than one Substitute materials are to be maintained by double clicking on the to be maintained by double clicking on the

Substitute Material field Substitute Material field- Click on Save Button- Click on Save Button

for the substitutefor the substitute material.material.

3.03.0 SUBSTITUTION REASON SUBSTITUTION REASON

SUBSTITUTION REASON SUBSTITUTION REASON S.No Item Description Examples/ Remarks

0101 DefinitionDefinition A Substitution Reason [or ProposedA Substitution Reason [or Proposed Reason] controls the execution of MaterialReason] controls the execution of Material DeterminationDetermination

It is assigned in theIt is assigned in the master data [ VB11 ]master data [ VB11 ]

0202 Path forPath for ConfigurationConfiguration

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Material Material Determination Determination →→ Define Substitution Define Substitution ReasonReason

T-Code - OVRQT-Code - OVRQ

0303 New SubstitutionNew Substitution ReasonReason

Define a Define a New Substitution Reason with aNew Substitution Reason with a 4-Character Alpha Numeric Key and a4-Character Alpha Numeric Key and a description for the Reasonsdescription for the Reasons

Reasons : InternationalReasons : International Article Number, Advt.,Article Number, Advt., Special Packing, etc.Special Packing, etc.

0404 ControlsControls Substitution Reason is associated with theSubstitution Reason is associated with the controls like Entry, Warning, Strategy,controls like Entry, Warning, Strategy, Outcome etc.Outcome etc.

Depending on theDepending on the requirement the controlsrequirement the controls may be set.may be set.

0505 ControlControlelementselements

EntryEntryIndicates if the system is to print the nameIndicates if the system is to print the name or number of the original material, in theor number of the original material, in the output [Order Confirmation etc].output [Order Confirmation etc].

To be marked for originalTo be marked for original material reflection inmaterial reflection in output.output.

WarningWarningIndicates whether the system displays aIndicates whether the system displays a warning message before substituting awarning message before substituting a materialmaterial

To be marked if warn.To be marked if warn. Message is required.Message is required.

StrategyStrategy

Controls whether product selection shouldControls whether product selection should occur automatically in the background oroccur automatically in the background or whether the alternative materials shouldwhether the alternative materials should be offered for selection in a dialog box.be offered for selection in a dialog box.

Ex : Blank- Auto. SubsEx : Blank- Auto. Subs A – Disp. Sub list A – Disp. Sub list B - Without ATP B - Without ATP*Av. Ch. done for Prod*Av. Ch. done for Prod Sel. in back ground.*Sel. in back ground.*

OutcomeOutcome

Controls whether the outcome of productControls whether the outcome of product selection should replace the original entryselection should replace the original entry or whether it should be recorded as a sub-or whether it should be recorded as a sub-item of the original entry.item of the original entry.

Ex : Blank – ReplaceEx : Blank – Replace A : Subs. A : Subs. Prod. Prod. disp as subitem disp as subitem B : As in A, but in B : As in A, but in in sales order in sales order only. only.

NoteNote : 1. For Automatic swapping Material Entered need not have MMR. : 1. For Automatic swapping Material Entered need not have MMR. 2. When outcome sub-item is displayed then both the materials should have MMRs. 2. When outcome sub-item is displayed then both the materials should have MMRs.

4.0 MATERIAL DETERMINATION PROCEDURE4.0 MATERIAL DETERMINATION PROCEDURE

4.1 CONDITION TABLE4.1 CONDITION TABLES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition A Condition Table is a combination of fieldsA Condition Table is a combination of fields which form a key for a Condition Record.which form a key for a Condition Record. --

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Material Material Determination Determination →→ Maintain Prerequisites for Maintain Prerequisites for Material Determination Material Determination →→ Define Condition Define Condition TableTable

--

33 T-CodeT-Code OV16OV16 --

44 Entry ScreenEntry ScreenIn the entry screen enter the desired TableIn the entry screen enter the desired Table number and press enter button otherwise systemnumber and press enter button otherwise system assigns number automatically.assigns number automatically.

55 Table NumberTable NumberUsers can create table from 501 to 999.Users can create table from 501 to 999. Ex : Table 1 –Ex : Table 1 –

Fields MaterialFields Material EnteredEntered

66 ProcessProcess

Select the fields from the list of allowed fieldsSelect the fields from the list of allowed fields [Field Catalogue] by double clicking the required[Field Catalogue] by double clicking the required fields which are reflected on the selected fieldsfields which are reflected on the selected fields and click on Generate Icon on Application Tooland click on Generate Icon on Application Tool Bar. Bar.

--

77 ChangeChange OV17OV17 --

88 DisplayDisplay OV18OV18 --

Note : The tables are created from the List of allowed fields. Note : The tables are created from the List of allowed fields.

4.2 ACCESS SEQUENCE4.2 ACCESS SEQUENCES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition

An Access Sequence is a search strategy whichAn Access Sequence is a search strategy which SAP system uses to search for condition recordsSAP system uses to search for condition records valid for a condition type.valid for a condition type.

The accessThe access sequence consistssequence consists of one or moreof one or more accessesaccessesIt determines the sequence in which the systemIt determines the sequence in which the system

searches for data. searches for data.

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Material Material Determination Determination →→ Maintain Prerequisites for Maintain Prerequisites for Material Determination Material Determination →→ Maintain Access Maintain Access SequenceSequence

--

33 CharactersCharacters Access Sequence is a 4 digit Alpha Numeric keyAccess Sequence is a 4 digit Alpha Numeric key --

44New AccessNew Access SequenceSequence

In the Application Tool bar select New EntriesIn the Application Tool bar select New Entries and define the desired Access Sequence.and define the desired Access Sequence.

A text can also beA text can also be added.added.

55 AccessesAccesses

Select the new Access Sequence and double clickSelect the new Access Sequence and double click on Accesses. System may not display anyon Accesses. System may not display any Accesses here. Accesses here.

An Access is likeAn Access is like serial numberserial number which is to bewhich is to be numbered withnumbered with some gaps.some gaps.

Again click on new Entries on Application ToolAgain click on new Entries on Application Tool Bar.Bar.Now we can add the desired condition tablesNow we can add the desired condition tables against each access.against each access.

66 FieldsFields

Select the first Access double click on fields.Select the first Access double click on fields. System may display all the fields in the conditionSystem may display all the fields in the condition table maintained for that Access. Similarly eachtable maintained for that Access. Similarly each access is selected and fields are initialized.access is selected and fields are initialized.

--

77TablesTables arrangementarrangement

Tables in an Access Sequence are to be arrangedTables in an Access Sequence are to be arranged from the most specific to the most general table.from the most specific to the most general table. --

4.3 MATERIAL DETERMINATION TYPE4.3 MATERIAL DETERMINATION TYPES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition Material Determination Type is similar toMaterial Determination Type is similar to Condition Type in Pricing. Condition Type in Pricing.

--

22 PathPath

IMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Material Material Determination Determination →→ Maintain Prerequisites for Maintain Prerequisites for Material Determination Material Determination →→ Define Condition Define Condition TypesTypes

--

33 CharactersCharacters Condition TypeCondition Type is a 4 digit Alpha Numeric key is a 4 digit Alpha Numeric key --

44New ConditionNew Condition TypeType

Select a Condition Type which is similar to theSelect a Condition Type which is similar to the desired condition Type and click on Copy Asdesired condition Type and click on Copy As button in the Application Tool bar. button in the Application Tool bar. A text can also beA text can also be

added.added.Define a new Condition Type with 4 charactersDefine a new Condition Type with 4 characters and assign the new Access Sequence to it.and assign the new Access Sequence to it.

4.4 MATERIAL DETERMINATION PROCEDURE4.4 MATERIAL DETERMINATION PROCEDURES.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinitionMaterial Determination procedure is theMaterial Determination procedure is the collection of desired Material Determinationcollection of desired Material Determination Types [Condition Types]. Types [Condition Types].

--

22 PathPathIMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Material Material Determination Determination →→ Maintain Pre-requisites for Maintain Pre-requisites for Material Determination Material Determination →→ Maintain Procedure Maintain Procedure

--

33 CharactersCharacters Material Determination Procedure Material Determination Procedure is a 6 digitis a 6 digit Alpha Numeric keyAlpha Numeric key

Ex : A00001Ex : A00001

44New New PricingPricing ProcedureProcedure

Select a standard Select a standard Material DeterminationMaterial Determination Procedure Procedure and click on Copy As Icon in theand click on Copy As Icon in the Application Tool bar. Application Tool bar.

A text can also beA text can also be added.added.Define a new Define a new Material Determination ProcedureMaterial Determination Procedure

with 6 characters and assign the new Conditionwith 6 characters and assign the new Condition Types and also if required retain the requiredTypes and also if required retain the required standard condition Types.standard condition Types.

4.5 ASSIGNING PROCEDURE TO SALES DOCUMENT TYPES4.5 ASSIGNING PROCEDURE TO SALES DOCUMENT TYPESS.NoS.No ItemItem DescriptionDescription RemarksRemarks

11 DefinitionDefinition Material Determination procedure is to beMaterial Determination procedure is to be assigned to the desired Sales Document Types. assigned to the desired Sales Document Types. --

22 PathPathIMG IMG →→ SD SD →→ Basic Functions Basic Functions →→ Material Material Determination Determination →→ Assign Procedures To SalesAssign Procedures To Sales Document TypesDocument Types

--

33 ExampleExample Assign the Material Determination Procedure toAssign the Material Determination Procedure to Sales Document Sales Document

Ex : A00001 isEx : A00001 is assigned to ORassigned to OR

5.0 STANDARD ITEM CATEGORIES AND SCHEDULE LINE CATEGORIES 5.0 STANDARD ITEM CATEGORIES AND SCHEDULE LINE CATEGORIES

Item Category Determination when sub item is usedS.NoS.No ItemItem Doc. TypeDoc. Type Item CategoryItem Category

GroupGroupUsageUsage Higher LevelHigher Level

Item CategoryItem Category. Item Category. Item Category

0101 Main ItemMain Item OROR NormNorm PSHPPSHP TAXTAX0202 Sub ItemSub Item OROR NormNorm PSELPSEL TAXTAX TAPSTAPS

Note : 1. Schedule Line Category for Main Item – CX.Note : 1. Schedule Line Category for Main Item – CX. 2. Schedule Line Category for Sub Item - PP. 2. Schedule Line Category for Sub Item - PP.

OUTPUT DETERMINATIONOUTPUT DETERMINATION

OUTPUT DETERMINATIONOUTPUT DETERMINATIONS.NoS.No Item Item DescriptionDescription RemarksRemarks11 IntroductionIntroduction The The output determinationoutput determination component is used component is used

for output control. Output control is used tofor output control. Output control is used to exchange information with internal andexchange information with internal and external partners.external partners.

- -

22 ExamplesExamples 5.5. Order Confirmations.Order Confirmations.6.6. Delivery NotesDelivery Notes7.7. InvoicesInvoices8.8. Shipping Notifications etc.Shipping Notifications etc.

These are also calledThese are also called as Business Forms.as Business Forms.

33 OutputOutput Output is a form of media from a business toOutput is a form of media from a business to one of its partners. Outputs are in the form ofone of its partners. Outputs are in the form of Order Confirmations, Delivery Notes,Order Confirmations, Delivery Notes, Invoices, and Shipping Notifications.Invoices, and Shipping Notifications.

Printouts, Faxes,Printouts, Faxes, Telexes, E-Mails,Telexes, E-Mails, and Electronic dataand Electronic data Interchange.Interchange.

44 Output TypeOutput Type Output Type is a type of output and containsOutput Type is a type of output and contains all the control features for the output. It isall the control features for the output. It is used for output determination.used for output determination.

--

55Output Type –Output Type – Control FeaturesControl Features

1.1. Kind of OutputKind of Output Order Confirm. etcOrder Confirm. etc2.2. Business TransactionBusiness Transaction Sales Order etc.Sales Order etc.3.3. Partner receiving the outputPartner receiving the output Sold-to Party etc.Sold-to Party etc.4.4. MediaMedia Fax, Email etc.Fax, Email etc.5.5. Print ProgramPrint Program --6.6. SAPScript Layout for formattingSAPScript Layout for formatting

outputoutput--

55 OutputOutput DeterminationDetermination

Output Determination can be maintainedOutput Determination can be maintained as Originating from CMR, or asas Originating from CMR, or as Originating by using ConditionOriginating by using Condition Technique.Technique.

Condition TechniqueCondition Technique is generallyis generally preferred.preferred.

66 Print ProgramPrint Program77 FormForm A form in SAPSCRIPT is used for PageA form in SAPSCRIPT is used for Page

Layout. A form contains various elementsLayout. A form contains various elements for Layout control of Individual pages etc.for Layout control of Individual pages etc.

Elements : HeaderElements : Header Data, Paragraphs,Data, Paragraphs, Windows, Pages,Windows, Pages, Page Windows, Page Windows,

SAP SCRIPT FORMSAP SCRIPT FORMS.NoS.No Item Item DescriptionDescription RemarksRemarks11 IntroductionIntroduction Sapscript form is a template which simplifiesSapscript form is a template which simplifies

the process of designing the Business Forms.the process of designing the Business Forms. It supplies layout and contents for theIt supplies layout and contents for the Business Forms.Business Forms.

Sapscripts Forms areSapscripts Forms are needed to print,needed to print, distribute or displaydistribute or display business forms.business forms.

22 ArchitectureArchitecture Layout Layout : The layout is defined by a set of: The layout is defined by a set of windows.windows.

Architecture consistsArchitecture consists of two components :of two components : Layout and Content.Layout and Content.

ContentContent : It is either text or graphics [Logo : It is either text or graphics [Logo etc.].etc.].

33 WindowsWindows The central object of SAPscript form isThe central object of SAPscript form is Windows. Windows houses the form content.Windows. Windows houses the form content. We can define size, position and content ofWe can define size, position and content of each window in a form.each window in a form.

SAPscript formSAPscript form derives its structurederives its structure from a set offrom a set of windows, each withwindows, each with its own content.its own content.

44 Processing ofProcessing of SAPscript FormSAPscript Form

SAPscript runtime environment :SAPscript runtime environment : Retrieves layout and contentRetrieves layout and content

data from SAPscript formdata from SAPscript form Collects the necessaryCollects the necessary

business data from databasebusiness data from database Generates the final SAPscriptGenerates the final SAPscript

form.form.The resulting Business form can be printed, e-The resulting Business form can be printed, e-mailed, faxed or displayed. mailed, faxed or displayed.

SAPscript runtimeSAPscript runtime environmentenvironment coordinates thecoordinates the processing ofprocessing of SAPscript form.SAPscript form.

S.NS.NOOOOUTPUTUTPUT TTYPESYPES

DDESCRIPTIONESCRIPTIONPRINTPRINT PPROGRAMROGRAM

FORMFORM OOUTPUTUTPUT PPROCEDUREROCEDURE

11 AF00AF00 InquiryInquiry RVADOR01RVADOR01 RVORDER01RVORDER01 V05000V05000

22 AN00AN00 QuotationQuotation RVADOR01RVADOR01 RVORDER01RVORDER01 V06000V06000

33 BA00BA00 Order ConfirmationOrder Confirmation RVADOR01RVADOR01 RVORDER01RVORDER01 V10000V10000

44 RD03RD03 Cash Sales InvoiceCash Sales Invoice RVADOR01RVADOR01 SD CASH SALESD CASH SALE V10001V10001

55 LD00LD00 Delivery NoteDelivery Note RVADDN01RVADDN01 RVDELNOTERVDELNOTE V10000V1000066 PL00PL00 Packing ListPacking List SDPACKLISDPACKLI SD_PACKING_LISTSD_PACKING_LIST V10000V10000

77 RD00RD00 InvoiceInvoice RVADIN01RVADIN01 RVINVOICE01RVINVOICE01 V10000V10000

88 LR00LR00 Invoice ListInvoice List RVADIL01RVADIL01 SD_INVOICE_LISTSD_INVOICE_LIST V30000V30000

REBATEREBATE

REBATEREBATES.NoS.No Item Item DescriptionDescription RemarksRemarks

11 RebateRebate

A A RebateRebate is a special discount which is paid is a special discount which is paid retroactively to a customer. This discount isretroactively to a customer. This discount is based on the customer's based on the customer's sales volumesales volume over a over a specified time periodspecified time period

It is an AgreementIt is an Agreement between thebetween the Customer and theCustomer and the company.company.

22Prerequisites forPrerequisites for RebateRebate ProcessingProcessing

Rebate agreements cane be processed onlyRebate agreements cane be processed only when the following prerequisite conditions arewhen the following prerequisite conditions are met i.e., activated for Rebate: met i.e., activated for Rebate:

Sales Organization Sales Organization Payer Payer Billing type (invoice, credit memo etc)Billing type (invoice, credit memo etc)

33RebateRebate AgreementAgreement

A rebate agreement usually consists of aA rebate agreement usually consists of a number of individual agreements in the form ofnumber of individual agreements in the form of condition recordscondition records. A rebate agreement and the. A rebate agreement and the condition records it contains are uniquelycondition records it contains are uniquely identified by a identified by a rebate agreement numberrebate agreement number. .

44Path [MasterPath [Master Data]Data]

Logistics Logistics →→ SD SD →→ Master Data Master Data →→ Rebate Rebate Arrangements Arrangements →→ Rebate Arrangements Rebate Arrangements →→ CreateCreate

T – Code : VBO1T – Code : VBO1

55General Data inGeneral Data in Reb. AgreementReb. Agreement[VBO1][VBO1]

The general data that applies to all condition records within the rebate agreement are :

Validity period Validity period Status (for example, whether theStatus (for example, whether the

agreement is released for settlement) agreement is released for settlement) Rebate recipient (the party whoRebate recipient (the party who

receives the credit memo) receives the credit memo) Currency (default from the salesCurrency (default from the sales

organization)organization) Method of payment (check, bankMethod of payment (check, bank

transfer, and so on) transfer, and so on)

The credit memo passes this information on to Financial Accounting.

66

Data inData in ConditionCondition RecordsRecords[VBO1][VBO1]

You can define the following data for eachYou can define the following data for each condition record in a rebate agreement:condition record in a rebate agreement:

•• Basis for the rebate (customer,Basis for the rebate (customer, customer/material, rebate group, and socustomer/material, rebate group, and so on) on)

•• Validity period (the validity period forValidity period (the validity period for each condition record must be the sameeach condition record must be the same as or lie within the validity period ofas or lie within the validity period of the rebate agreement) the rebate agreement)

•• Condition rate Condition rate •• Material for settlement Material for settlement •• Accrual rateAccrual rate•• Other control data, such as the pricingOther control data, such as the pricing

scale typescale type

77 AccrualsAccruals

Rebate accruals allow the accountingRebate accruals allow the accounting department to keep track of how much yourdepartment to keep track of how much your company owes customers with whom you havecompany owes customers with whom you have rebate agreements.rebate agreements.

88RebateRebate Agreement TypeAgreement Type

The rebate agreement type determines whichThe rebate agreement type determines which data the system automatically proposes for thedata the system automatically proposes for the corresponding rebate agreement. corresponding rebate agreement. For example,For example, the system can proposethe system can propose :

•• Condition types we can use in anCondition types we can use in an agreement agreement

•• Validity period the systemValidity period the system automatically proposes for anautomatically proposes for an agreement agreement

•• Status required before an agreementStatus required before an agreement can be processed for payment. can be processed for payment.

•• Rebate agreement types are defined inRebate agreement types are defined in Customizing for Sales andCustomizing for Sales and Distribution.Distribution.

99 Path forPath for ConfigurationConfiguration

IMG IMG →→ SD SD →→ Billing Billing →→ Rebate Processing Rebate Processing →→ Rebate Agreements Rebate Agreements →→ Define Rebate Define Rebate Agreement TypesAgreement Types

CONTROL DATA OF REBATE AGREEMENT TYPESCONTROL DATA OF REBATE AGREEMENT TYPES

STANDARD REBATE AGREEMENT TYPESSTANDARD REBATE AGREEMENT TYPES

S.NoS.No AgreementAgreement typetype

Basis ofBasis of rebaterebate

ConditionCondition TypeType RemarksRemarks

0101 00010001 Customer/materialCustomer/material(% rebate)(% rebate) BO01BO01

Pricing Reference MaterialPricing Reference Material : It is the material : It is the material which when entered in Pricing Reference field inwhich when entered in Pricing Reference field in MMR Sales Org. view copies all the conditionsMMR Sales Org. view copies all the conditions to other materials.to other materials.

0202 00010001 Customer/rebateCustomer/rebate groupgroup(% rebate)(% rebate)

BO01BO01 Volume Rebate GroupVolume Rebate Group : : A A rebate grouprebate group consists consists of materials to which same rebate is applied. Aof materials to which same rebate is applied. A material is assigned to a rebate group in thematerial is assigned to a rebate group in the material master record Sales Org. view, Rebatematerial master record Sales Org. view, Rebate Group field. In the condition record Material forGroup field. In the condition record Material for

Rebate Agreement

Type

Verification Levels

Condition Type Group

Man Payments- Payment Procedure- Partial Settlement-Reverse Accruals

Payment Method

Manual Accruals

Settlement- Final Settlement- Rebate Correction- Min. status

Text Determination

Validity Periods & Default Status

settlement is used.settlement is used.

0303 00020002Customer/materialCustomer/material(quantity(quantity dependent)dependent)

BO02BO02 --

0404 00030003 CustomerCustomer(% rebate)(% rebate) BO03BO03

Material for SettlementMaterial for Settlement : When the basis for : When the basis for Rebate is customer, customer hierarchy or groupRebate is customer, customer hierarchy or group of materials then “Material for Settlement”of materials then “Material for Settlement” material is used for these agreements. This is amaterial is used for these agreements. This is a special material created only for this purposespecial material created only for this purpose

0505 00040004CustomerCustomer hierarchyhierarchy(% rebate)(% rebate)

BO04BO04 In the condition record Material for settlement isIn the condition record Material for settlement is used.used.

0606 00040004Cust.Cust. hierarchy/materialhierarchy/material(% rebate)(% rebate)

BO05BO05 --

0707 00050005 Sales volumeSales volume independentindependent BO06BO06 --

Configuration at IMG level [SD/Billing/Rebate Processing]Configuration at IMG level [SD/Billing/Rebate Processing]S.NoS.No ConfigurationConfiguration DescriptionDescription Examples/Examples/

RemarksRemarks

0101ActivatingActivating RebateRebate ProcessingProcessing

Rebate is activated for Sales Organization,Rebate is activated for Sales Organization, CMR and the relevent Billing Documets. CMR and the relevent Billing Documets.

Ex : B1, F2, G2 etcEx : B1, F2, G2 etc for Billingfor Billing Documents.Documents.

0202DefiningDefining Condition TypeCondition Type GroupGroup

Define Condition Type Group, a groupingDefine Condition Type Group, a grouping of Cond. Types for Rebate [4 digit alpha-of Cond. Types for Rebate [4 digit alpha-num. key].num. key].

Ex – 0001 – Reb.Ex – 0001 – Reb. Grp.Grp. 0002 – 0002 – MaterialMaterial 0003 - 0003 - CustomerCustomer

0303Condition TypeCondition Type assign. to Con.assign. to Con. Type GroupType Group

Assign. Condition Type to Cond. TypeAssign. Condition Type to Cond. Type Group. Also assigned is the tableGroup. Also assigned is the table represented by Sequence no.represented by Sequence no.

Ex : B001 to 0001Ex : B001 to 0001 B002 to 0002 B002 to 0002 B003 to 0003 B003 to 0003

0404Assign ConditionAssign Condition Type Group ToType Group To Rebate AgrmntRebate Agrmnt

Assign Cond. Type Group to RebateAssign Cond. Type Group to Rebate Agreement Type.Agreement Type.

Ex – 0001 – 0001.Ex – 0001 – 0001. 0002 – 0002 0002 – 0002 0003 - 0003 0003 - 0003

0505 Define RebateDefine Rebate AgreementAgreement

Define Rebate agreement based on Group,Define Rebate agreement based on Group, Material, Customer etc.Material, Customer etc.

4 digit alpha-4 digit alpha-numeric keynumeric key

Control DataControl DataVerification Level can be set.Verification Level can be set. To see Reb. details.To see Reb. details.Manual Accruals Order type is set [R4]Manual Accruals Order type is set [R4] Billing Type – B4Billing Type – B4

Manual PaymentManual Payment

Payment Procedure is defined.Payment Procedure is defined. Pay. upto accruals,Pay. upto accruals, etcetc

Partial Settlement Ord. Type. defined[R3]Partial Settlement Ord. Type. defined[R3] Part. Bil. Type – B3Part. Bil. Type – B3Switch on the reverse accruals indicator.Switch on the reverse accruals indicator. Reverses man.Reverses man.

Paymts.Paymts.SettlementSettlement Final Setlment Ord. related Bill. Type – B1Final Setlment Ord. related Bill. Type – B1 Credit Memo Req –Credit Memo Req –

B1B1

Order Type for Rebate Correction – B2Order Type for Rebate Correction – B2 Reb. Cor– B2[Bill.Reb. Cor– B2[Bill. Type]Type]

Minimum Status for final settlementMinimum Status for final settlement Ex : Agrmnt rel. forEx : Agrmnt rel. for setl.setl.

Pricing Procedure/Account DeterminationPricing Procedure/Account Determination

0101 Rebate ConditionRebate Condition TypeType

Rebate Condition Types are assignedRebate Condition Types are assigned Condition Class – C [Exp. Reimbursement].Condition Class – C [Exp. Reimbursement].

Access Seq.Access Seq. assigned. assigned. Ex : B002 for B002Ex : B002 for B002

Rebate Procedure indicates if the conditionRebate Procedure indicates if the condition is dependent on Sales Volume.is dependent on Sales Volume.

Also, AccrualsAlso, Accruals Correc. ProcedureCorrec. Procedure corrects accruals.corrects accruals.

0202 Rebate BasisRebate BasisThe Condition subtotal “SubTo” fieldThe Condition subtotal “SubTo” field should have value as 7 [for Rebate Basis]should have value as 7 [for Rebate Basis]

Generally Net ValueGenerally Net Value is used for Rebateis used for Rebate Basis.Basis.

0303 Not Relevent forNot Relevent for Sales OrderSales Order

To the rebate Condition Type requirementTo the rebate Condition Type requirement 024 is assigned which determines that it is024 is assigned which determines that it is accessed in Billing. accessed in Billing.

Not Accessible inNot Accessible in Sales.Sales.

0404 Account KeysAccount KeysRevenue Account Key - ERB Revenue Account Key - ERB Accrual Account Key - ERU assigned toAccrual Account Key - ERU assigned to the Reb. Cond. Type.the Reb. Cond. Type.

Ex : For Reb.Ex : For Reb. Condition Condition Type – B002. Type – B002.

Note : Rebate Agreement in Easy Access [VBO1]S.NoS.No FieldField DescriptionDescription Examples/Examples/

RemarksRemarks

0101 Rebate RecipientRebate RecipientRebate Recipient could be Sold-to-party,Rebate Recipient could be Sold-to-party, Payer or Ship-to-party.Payer or Ship-to-party.

System cannotSystem cannot determine Alt.determine Alt. payer.payer.

0202 Validity PeriodsValidity Periods Rebate can be set to start from a past date.Rebate can be set to start from a past date. Past accruals notPast accruals not posted posted

0303 ConditionsConditions Mat., rate and accruals are maintained. Mat., rate and accruals are maintained. Use ConditionsUse Conditions button.button.

0404 Matl. f Settl.Matl. f Settl.Material for Settlement is generally used forMaterial for Settlement is generally used for matl group rather than for a material.matl group rather than for a material.

A mat. is definedA mat. is defined for credit Memofor credit Memo request. request.

RETURNS PROCESS IN SAP

RETURNS PROCESSS.NoS.No Item Item DescriptionDescription RemarksRemarks

0101 Sales ReturnsSales Returns Sales Returns is a process where in a customer sends theSales Returns is a process where in a customer sends the material back to the supplier, generally when thematerial back to the supplier, generally when the material is found to be defective. material is found to be defective.

0202 ReturnsReturns DocumentDocument

In SAP a Sales Returns Document is created either w.r.tIn SAP a Sales Returns Document is created either w.r.t Invoice or the actual Sales Order.Invoice or the actual Sales Order.

0303 Transaction FlowTransaction Flow Invoice / Sales Order Invoice / Sales Order →→ Returns Order Returns Order →→ Returns Returns Delivery Delivery →→ Post Goods Receipt [PGR]. Post Goods Receipt [PGR].

DOCUMENT TYPE SETTINGS – IMGDOCUMENT TYPE SETTINGS – IMGS.NoS.No SettingsSettings DetailsDetails0101 PathPath IMG IMG →→ SD SD →→ Sales Sales →→ Sales Documents Sales Documents →→ Sales Sales

Document Header Document Header →→ Define Sales Document Type Define Sales Document Type0202 Transaction CodeTransaction Code VOV8VOV80303 Standard Document Type Standard Document Type RE –Returns Sales DocumentRE –Returns Sales Document0404 TableTable TVAK : Document Type – AUART [Field]TVAK : Document Type – AUART [Field]

0505 RERE SettingsSettings

SD DocumentSD Document CategoryCategory

H - Returns H - Returns

Transaction GroupTransaction Group 0 - Order0 - OrderScreen SequenceScreen Sequence GroupGroup

RE – ReturnsRE – Returns

IncompletionIncompletion ProcedureProcedure

14 – Credit Memo14 – Credit Memo

Delivery TypeDelivery Type LR – Returns DeliveryLR – Returns DeliveryDelivery RelatedDelivery Related Billing TypeBilling Type

RE – Credit for ReturnsRE – Credit for Returns

Order Related BillingOrder Related Billing TypeType

RE – Credit for ReturnsRE – Credit for Returns

Billing BlockBilling Block 08 – Check Credit Memo08 – Check Credit MemoPropose DeliveryPropose Delivery DateDate

ActivatedActivated

ITEM CATEGORY – IMGITEM CATEGORY – IMGS.NoS.No SettingsSettings DetailsDetails

0101PathPath IMG IMG →→ SD SD →→ Sales Sales →→ Sales Documents Sales Documents →→ Sales Document Item Sales Document Item

→→ Define Item Categories Define Item Categories0202 Transaction CodeTransaction Code VOV7VOV7

0303 Standard Item Standard Item CategoryCategory

REN – Returns Item CategoryREN – Returns Item Category

0404 TableTable TVAP : Item Category – PSTYV [Field]TVAP : Item Category – PSTYV [Field]

0505 RENREN SettingsSettings

PricingPricing X – Pricing StandardX – Pricing StandardBillingBilling B – Order related Billing, status according to order quantity. B – Order related Billing, status according to order quantity. ReturnsReturns ActivatedActivatedCredit Credit De-activatedDe-activatedScheduleSchedule Lines Lines

ActivatedActivated

Wt/VolWt/Vol ActivatedActivatedDetermineDetermine CostCost

ActivatedActivated

BusinessBusiness Item Item

De-activatedDe-activated

SCHEDULE LINE CATEGORY - IMGSCHEDULE LINE CATEGORY - IMGS.NoS.No SettingsSettings DetailsDetails

0101PathPath IMG IMG →→ SD SD →→ Sales Sales →→ Sales Documents Sales Documents →→ Schedule Lines Schedule Lines →→ Define Define

Schedule Line CategoriesSchedule Line Categories0202 Transaction CodeTransaction Code VOV6VOV6

0303 Standard Schedule LineStandard Schedule Line CategoryCategory

DN – Returns Item CategoryDN – Returns Item Category

0404 TableTable TVEP : Schedule Line Category – ETTYP [Field]TVEP : Schedule Line Category – ETTYP [Field]

0505 DNDN SettingsSettings

MovementMovement TypeType

651 – Goods Return Delivery. This will enable the stock value and651 – Goods Return Delivery. This will enable the stock value and quantity to go up in Inventory Accounting.quantity to go up in Inventory Accounting.

Item Rel.Item Rel. forfor DeliveryDelivery

Activated Activated

Incomp.Incomp. ProcedureProcedure

30 – Delivery Relevant Schedule Line30 – Delivery Relevant Schedule Line

THIRD PARTY ORDERTHIRD PARTY ORDER

THIRD PARTY ORDERTHIRD PARTY ORDERS.NoS.No Item Item DescriptionDescription RemarksRemarks11 ScenarioScenario Some businesses will haveSome businesses will have

subcontractors who manufacture onsubcontractors who manufacture on their behalf and supply them to thetheir behalf and supply them to the customers directly, though the order iscustomers directly, though the order is placed on the business. placed on the business.

22 ExamplesExamples 9.9. HLL has a few companiesHLL has a few companies which manufacture itswhich manufacture its products and deliver to itsproducts and deliver to its customers directly.customers directly.

10.10. Trading Goods can be allowedTrading Goods can be allowed for delivery directly to thefor delivery directly to the customer of a company.customer of a company.

33 Third PartyThird Party Order Order

In a Third Party Order processIn a Third Party Order process Customer places Order on CompanyCustomer places Order on Company but the material will be supplied by abut the material will be supplied by a Third Party Vendor directly to theThird Party Vendor directly to the customer.customer.

Eventually Invoice isEventually Invoice is raised by the businessraised by the business and sent to theand sent to the Customer. Customer.

44 Third PartyThird Party Order ProcessOrder Process

System creates a Purchase RequisitionSystem creates a Purchase Requisition during Sales Order Processing, whichduring Sales Order Processing, which is used by Purchasing in creating a PO.is used by Purchasing in creating a PO. Based on this PO material is suppliedBased on this PO material is supplied by a third party Vendor to the customerby a third party Vendor to the customer directly.directly.

For viewing PurchaseFor viewing Purchase Requisition Number goRequisition Number go to VA02/VA03 –to VA02/VA03 – Schedule Line,Schedule Line, Procurement.Procurement.

Sales Order

Cust : 1000

Item QtyMat A 10

Pur. Req.Cust :1000

Item QtyMat A 10

Pur. Ord.

Vend :ABC

Item QtyMat A 10

Goods. Rcp.

Vend :ABC

Item QtyMat A 10

Inv. Ver.

Vend :ABC

Item QtyMat A 10

Cust. Inv.

Cust : 1000

Item QtyMat A 10

SD Module

MM Module

Item Cat.TAS

55 Item CategoryItem Category GroupGroup

Item Category Group in MMR SalesItem Category Group in MMR Sales Org 2 is BANS [Standard].Org 2 is BANS [Standard].

BANS determines ItemBANS determines Item Category as TAS.Category as TAS.

66 Schedule LineSchedule Line CategoryCategory

SAP standard schedule line category isSAP standard schedule line category is CS.CS.

77 Purchase OrderPurchase Order A purchase order can be created withA purchase order can be created with reference to a Purchase requisition [T-reference to a Purchase requisition [T-Code : ME21N]. Code : ME21N].

The PO number canThe PO number can be seen in thebe seen in the document flow ofdocument flow of Sales Order.Sales Order.

Note : Note : 1. If the material is delivered to company and not to customer then it is called 1. If the material is delivered to company and not to customer then it is called Individual Purchase Order [IPO]. Individual Purchase Order [IPO].2. For IPO:2. For IPO:

i.i. Item Category Group [MMR] – BANCItem Category Group [MMR] – BANCii.ii. MRP Group - 020MRP Group - 020

iii.iii. Item Category – TABItem Category – TABiv.iv. Schedule Line Category - CBSchedule Line Category - CB

For IPO Process Flow is as follows:For IPO Process Flow is as follows:

ITEM CATEGORY SETTINGSITEM CATEGORY SETTINGS

S.S. NoNo TransTrans ItemItem

CategCategSpec.Spec. StockStock Pric.Pric. Bill.Bill. Bus.Bus.

ItemItemSchd.Schd. LinesLines

ReturReturnn

Wt /Wt / Vol.Vol. CredtCredt CostCost

CreatCreat POPO

Auto.Auto.

11TPOTPO

TASTAS -- XX FF -- --

--

Sales Order

Cust : 1000

Item QtyMat A 10

Pur. Req.Cust :1000

Item QtyMat A 10

Pur. Ord.

Vend :ABC

Item QtyMat A 10

Goods. Rcp.

Vend :ABC

Item QtyMat A 10

Inv. Ver.

Vend :ABC

Item QtyMat A 10

Cust. Inv.

Cust : 1000

Item QtyMat A 10

SD Module

MM Module

Delivery & Trnsfr Ord.

Cust : 1000

Item QtyMat A 10

PGI.

Cust : 1000

Item QtyMat A 10

22IPOIPO

TABTAB EE XX AA -- --

Note : 1. Path - IMG Note : 1. Path - IMG →→ SD SD →→ Sales Documents Sales Documents →→ Sales Document Item Sales Document Item →→ Define Item Category. Define Item Category. 2. Table - TVAP 2. Table - TVAP

11.11. For TPO Billing F stands for Order related billing document , status according to invoice quantity. It For TPO Billing F stands for Order related billing document , status according to invoice quantity. It could be B – relevant for Order related billing, status according to order quantity. could be B – relevant for Order related billing, status according to order quantity.

SCHEDULE LINE CATEGORY SETTINGSSCHEDULE LINE CATEGORY SETTINGS

S.NoS.No ProcessProcessScheduleSchedule

LineLine CategoryCategory

DescriptiDescriptionon

MovemenMovement Typet Type

Rel. forRel. for DelvryDelvry

OrderOrder TypeType

ItemItem CategoCatego

ryry

AccAccAssAss

AvAvCh.Ch. TORTOR

11 TPOTPO CSCS LegLeg -- -- NBNB 55 11 -- --22 IPOIPO CBCB IPOIPO -- NBNB 00 EE

Note : 1. Path - IMG Note : 1. Path - IMG →→ SD SD →→ Sales Documents Sales Documents →→ Schedule Lines Schedule Lines →→ Define Schedule Line Category. Define Schedule Line Category. 2. Table - TVEP 2. Table - TVEP

THIRD PARTY ORDER IN EASY ACCESSTHIRD PARTY ORDER IN EASY ACCESS

S.NoS.No ConfigurationConfiguration DescriptionDescription Examples/ RemarksExamples/ Remarks

0101 AutomaticAutomaticItem Category Group BANS in sales 2 screenItem Category Group BANS in sales 2 screen of MMR specifies material as third-party Itemof MMR specifies material as third-party Item

Item Category TAS isItem Category TAS is determined in Sales Orderdetermined in Sales Order processingprocessing

0202 ManualManualFor the material which is also procured fromFor the material which is also procured from outside, change TAN to TAS in Sales Orderoutside, change TAN to TAS in Sales Order manually.manually.

Item Category Group isItem Category Group is NORM. NORM.

0303PurchasePurchase Requisition &Requisition & VendorVendor

For each item in the Sales Order systemFor each item in the Sales Order system generates a Purchase Requisition [and PO]generates a Purchase Requisition [and PO] and also a vendor automatically.and also a vendor automatically.

Purchase Requisition isPurchase Requisition is generated for eachgenerated for each schedule line.schedule line.

0303AutomaticAutomatic DeliveryDelivery SchedulingScheduling

System takes into account lead timesSystem takes into account lead times specified by Purchase department.specified by Purchase department.

Time for processingTime for processing third party items + timethird party items + time required by vendor.required by vendor.

0505 Address of Ship-Address of Ship-to-Partyto-Party

Address of Ship-to-party changed in the SalesAddress of Ship-to-party changed in the Sales Order is copied into the Purchase RequisitionOrder is copied into the Purchase Requisition directly.directly.

Address data cannot beAddress data cannot be changed in PO.changed in PO.

0606 Purchase OrderPurchase Order TextText

For each Third Party item text entered isFor each Third Party item text entered is copied into the PO.copied into the PO.

PO number appears in thePO number appears in the document flow.document flow.

0707 Changes in POChanges in POChanges made in PO are automatically copiedChanges made in PO are automatically copied onto the Sales Order.onto the Sales Order.

Ex : ConfirmedEx : Confirmed quantities, delivery datesquantities, delivery dates etc.etc.

Changing a Third Party OrderChanging a Third Party Order

0808 When there isWhen there is no POno PO

If there are no POs, then only changes toIf there are no POs, then only changes to quantity or delivery data can be made.quantity or delivery data can be made.

This copied automat. toThis copied automat. to Pur. Req if permittedPur. Req if permitted by release status.by release status.

0909 When there is aWhen there is a POPO

If a PO already exists, then the changesIf a PO already exists, then the changes made on Sales Order are to be copied tomade on Sales Order are to be copied to

Changes in PO areChanges in PO are copied automatically tocopied automatically to

PO manually only.PO manually only. Sales Order.Sales Order.Deleting a Third Party OrderDeleting a Third Party Order

1010 When there areWhen there are POsPOs

If there are any POs related to third partyIf there are any POs related to third party order they have to be deleted first.order they have to be deleted first.

Otherwise customerOtherwise customer still will receive goods.still will receive goods.

BILLING - THIRD PARTY ORDER BILLING - THIRD PARTY ORDER

S.NoS.No ConfigurationConfiguration DescriptionDescription Examples/ RemarksExamples/ Remarks

0101 Item CategoryItem Category

If relevance for billing is set for “B”, then third-party item isIf relevance for billing is set for “B”, then third-party item is considered to be completely billed if invoiced qty is equal to salesconsidered to be completely billed if invoiced qty is equal to sales order item qty.order item qty.If relevance for billing is set for “F”, then each time a vendorIf relevance for billing is set for “F”, then each time a vendor invoice is received, a customer invoice is created for the quantity ininvoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be completelythe vendor invoice and the order is considered to be completely billed until the next vendor invoice is received.billed until the next vendor invoice is received.

0202 Copy ControlCopy Control

Copy Quantity - FCopy Quantity - F If Billing Relevance is F[Item Cat.]If Billing Relevance is F[Item Cat.]Copy Quantity – E or ICopy Quantity – E or I[Billing after Order or[Billing after Order or MIGO]MIGO]

If Billing Relevance is B[Item Cat.]If Billing Relevance is B[Item Cat.]

Transfer of Requirements

Configuration at IMG level [Basic Functions/TOR]S.No Configuration Description Examples/ Remarks

01 Requirement Class

Define requirement Class and switch on TOR and Availability Check etc.

Ex : Order /Del. Requirment[041].

02 Requirement Type

Define Requirement Type and assign Requirement Class.

Ex : 041 created and assigned to Req. Class.

03 Det. of Req. Type

Item Category + MRP Type = Requirement Type.

Ex : TAN + PD = 041

04 Schedule Line Category

Switch on TOR at Schedule Line Category.

Effective only when TOR is switched on at Requirement Class level.

05 Quantity Confirmation

Maintain Blocking reasons, define delivery blocks and duration.

Qty transfered but not resrvd.

06 Requirement Fulfillment

Certain requirements have to be fulfilled for TOR to happen.

Ex : Stand. Req 101 – For Cr. Block, No PO.

Important Settings in Easy AccessS.No Configuration Description Examples/ Remarks

01 Availability Check

Mention the checking group in the Availability Check field of Sales/plant veiw of MMR.

Ex : 01 – Col. Req. 02 - Ind. Req. etc.

02 Delivering Plant Mention delivering plant for the line item in the sales order.

Important PointsS.No Item Description Examples/ Remarks

01 Special Stock Even when the special stock is indicated as Coll. Req. in MMR system transfers them as individual requirements

Ex : Consignment, Ret. packaging, Make-to order etc.

02 Avail. Over. [CO09]

For Ind. Req. CO09 shows quantity, doc. no. item no and requirement class.

Ind. Req. can also be seen in MD04.

03 Strategy Group Requirement Type and eventually requirement Class are determined in Strategy Group of MMR, MRP3 view.

Seq. for Req Typ Det : Strat. Group > MRP Gr. > Mat. Type

04 Planning Material

Similar materials can be assigned [MRP 3] to Planning Material & Ind. req. can be created for this material.

TOR cannot be performed for Planning material.

05 Consumption Mode

Defines whether and in which direction on the time axis from requirements date the consumption of cust. Req. occurs with planned independent requirements.

Ex : 1. No. Pln. Cons. 2. Forward cons. 3. Backwrd cons. Etc.

AVAILABILITY CHECK

Configuration at IMG level [Basic Functions/TOR & Av. Ch]S.No Configuration Description Examples/ Remarks

01 Checking Group

Define Checking Group and specify whether check to be carried out and set for Individual/Collective requirements.

Ex : 01 for Coll. Req. 02 for Ind. Req. etc.

02 Requirement Class

Switch on Availability Check for the Requirement Class.

Ex – For Requirement Class 041.

03 Schedule Line Category

Switch on Availability Check at Schedule Line Category level.

Ex : For CP, C1 etc.

04 Control for Availability

Check

Assign Checking Rule to Checking Group and define the scope of Availability Check. The scope includes various stock [safety, transfer etc], Inward/Outward movements, RLT etc.

Checking Rules are predefined in SD.Ex : A for SD Order B for SD Delivery etc.

Other Settings01 Default Value Checking Group set for [Material Type

+ Plant ] as default value. Used only if not mentioned in MMR.

Ex : FERT + Plant1000 = Ch. Gr. 01.

02 Material Block Block indicator can be activated if others have to be blocked from carrying out Av. Ch while it is being checked.

A –Order, B – Delivery Note, C-Reservation. These initiators cannot be changed.

03 Item Category Availability Check can be activated or deactivated at Item Category level.

Ex : REN can be switched off.

04 System Responses

Based on Sales Area, system responses can be set in Av. Ch. Rule, should there be no/insufficient stock[after Av. Ch].

Ex : A dialog box for selecting one time / complete / delevery proposal.

Important Settings in Easy AccessS.No Configuration Description Examples/ Remarks

01 Availability Check

Mention the checking group in Availability Check field of MRP 3 veiw of MMR..

01 – Col. Req.02 - Ind. Req.etc.

02 Delivering Plant Mention delivering plant for the line item in the sales order.

Other Availability ChecksS.No Item Description

01 Against Product Allocation

Availability Check against Product Allocation allows a predefined distribution quantity of products to customers.

02 Against Planning

The check is not against sales orders but the quantities are produced in line with expected sales quantities [ind. of orders].

Intercompany Business Processing

Use

Intercompany business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code.

The following intercompany business transactions are possible:

• Intercompany sales processing

A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code.

The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.

• Intercompany stock transfer

A purchasing organization which is assigned to the ordering company code creates a purchase order ordering goods from a plant assigned to another company code.

The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.

Because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an intercompany billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.

Working with Intercompany Sales Processing

Intercompany sales processing consists of the following three stages:

• Processing sales orders • Processing deliveries • Billing

The sales organization and the plant are assigned to different company codes and have the following responsibilities:

Sales organization: Processes the sales order

Bills the customer

Plant: Delivers goods to the customer

Bills the ordering company code (sales organization) - this is intercompany billing.

Intercompany billing uses SAP EDI to carry out posting to vendor account for the ordering company code.

Company Structure

Company code Sales organization Plant

0001 0001 0001

0002 0002

Condition Record

A condition record specifies that plant 0002 bills sales organization 0001 for goods at 80% of the net invoice value.

Sales orders

Sales organization 0001 receives the following sales order from customer XYZ:

Item 10 Product A 20 pcs (Plant 0001) USD 200

Item 20 Product B 50 pcs (Plant 0002) USD 500

The second item requires intercompany sales processing, since product B must be delivered from a different company (company code 0002).

Intercompany Sales Processing

The intercompany sales functions are carried out as follows:

o Pricing for customer invoice: Sales organization 0001

o delivery: Plant 0002

o billing: Sales organization 0001 bills the customer for USD 500

Sales organization 0002 bills sales

organization 0001 for USD 400

(with an intercompany billing

document)

o inancial accounting: In company code 0001, SAP EDI

is used to carry out posting to vendor account

Relationship to Pricing

The system processes intercompany pricing elements in exactly the same way as other pricing elements. The data for intercompany sales is stored in condition records. Pricing for intercompany billing is controlled by condition types, pricing procedures, and access sequences. Intercompany billing itself is controlled in a separate menu point in Customizing. This control data is defined in Customizing for Sales by your system administrator.

Working with Intercompany Stock Transfer

You can transfer stock from one plant to another where the plants belong to different companies (i.e. have different company codes).

Since the plants belong to different company codes, the following points have to be considered from the sales point of view:

• delivery: the procedure for delivering on the basis of a purchase order from another plant should be similar to delivering on the basis of a sales order from a customer

• billing: the delivering plant will be charging the receiving plant for the material.

To deal with these points, the stock transfer can be carried out with a normal purchase order type NB.

The delivering plant can then create a delivery and an intercompany billing document on the basis of this purchase order.

An incoming invoice with reference to the purchase order can be posted in the following ways:

• Manually, after the invoice has been checked • Automatically, with an internal billing document via SAP EDI

The following example outlines the procedure for intercompany stock transfer.

Company Structure

Company code Plant City Name

0001 A Atlanta 0002 B Boston Smith & Co.

Business Transaction

Plant A orders 100 tons of "Steel-1" from plant B at a price of USD 10.00 per ton.

1. Plant A, company code 0001:

The clerk responsible creates a normal purchase order (type NB) for the vendor Smith & Co. who is assigned to Plant B. The clerk can enter prices and delivery costs as usual.

2. Plant B, company code 0002:

On receipt of the purchase order, the vendor Smith & Co. enters a delivery for 100 tons of "Steel-1".

3. When the material leaves the premises, the vendor Smith & Co. posts goods issue.

The values and the quantity are not yet posted in the receiving plant (Plant A).

4. Plant A, company code 0001:

When the material arrives at Plant A, the clerk responsible posts goods receipt against the purchase order. The system now posts values and quantities in the receiving plant.

5. Plant B, company code 0002:

On the basis of the delivery, the system creates a billing document (intercompany billing) amounting to USD 1000.

6. Plant A, company code 0001:

In company code 0001, the incoming invoice can be posted in the following ways:

o The receiving plant checks the invoice with reference to the purchase order and posts invoice receipt.

o Invoice entry is posted with an internal billing document via SAP EDI.

Working with Intercompany Deliveries

Depending on the intercompany business transaction, the goods are delivered as follows:

when where to

for intercompany

sales processing

to the customer

for intercompany

stock transfer

to the plant assigned to the

ordering company code

You process the delivery as usual, selecting a shipping point that is assigned to the delivering plant.

Goods issue is carried out in the delivering plant.

You can create the delivery just like any other delivery on the Shipping screen:

• for a single delivery with the menu path Delivery → Create.

You can then enter the shipping point assigned to the delivery plant in the field Shipping Point.

• for several deliveries with the menu path Delivery → Process dlv. due list.

You can

o select Settings → Organizational data to enter relevant sales area data as some of the selection criteria for your delivery due list.

o select Settings → Further sel. screen to enter further selections (such as the ship-to party or the material number).

If you are delivering to another plant on the basis of a purchase order (i.e. stock transfer):

• you cannot process a single delivery; i.e. you must process the delivery due list and mark the field Stock transport

• you can enter the purchase order number by selecting Settings → Further sel. screen and use the field Purchase doc. from.

Shipping (LE-SHP)

Implementation Options

Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles.

In shipping processing, all delivery procedure decisions can be made at the start of the process by

• Taking into account general business agreements with your customer • Recording special material requests • Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.

Integration

The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.

Range of Functions

The shipping module supports the following functions, which include but are not limited to:

• Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance)

• Creating and processing outbound deliveries • Planning and monitoring of worklists for shipping activities • Monitoring material availability and processing outstanding orders • Monitoring the warehouse's capacity situation • Picking (with optional link to the Warehouse Management system) • Packing deliveries • Information support for transportation planning • Support of foreign trade requirements • Printing and transmitting shipping documents • Processing goods issue • Controlling using overviews of

o Deliveries currently in process o Activities that still are to be carried out o Possible bottlenecks

A list of deliveries posted as goods issue in the shipping department could be used to form a worklist for the billing department.

Working with Intercompany Billing

After goods issue has taken place, you can process the delivery for billing. You can create the billing documents just like any other billing document on the Billing screen:

• for a single billing document with the menu path Billing document → Create. • for several billing documents with the menu path Billing document → Billing due list.

The delivery may have to be processed for billing twice.

• The delivering plant processes the delivery to create an intercompany billing document (billing document type IV) for the selling company. This company code posts invoice entry for this billing document.

The billing document is automatically billed to the internal payer that is assigned to the sales organization. The intercompany charges that appear in the intercompany billing

document represent the actual amount that the delivering plant is charging the sales organization.

• If the selling company is selling the goods to a customer, it processes the delivery to create an invoice for this customer. The system can take the prices from the order or determine new prices. It takes the quantity to be invoiced from the delivery.

The billing due list for the intercompany invoice is generated after the customer invoice has been created.

Prerequisites for Intercompany Business

Processing

Certain prerequisites must be met before you can process intercompany sales.

The following data must be defined in Customizing for Sales by your system administrator:

• If you need to use the intercompany billing document, billing type IV must be maintained and assigned to the relevant sales document types

• Output type RD04 is used to enable intercompany billing to carry out posting to vendor account or invoice entry. In the standard system, billing type IV is assigned to output procedure V40000, which contains this output type.

For information on setting up intercompany billing, see the online Implementation Guide.

Billing type IG is used for internal credit memos.

• For condition records used in intercompany sales processing, one of the following condition types must be maintained:

o PI01 (fixed amount per material unit) o PI02 (percentage of the net invoice amount)

• Permissible combinations of plant and sales organization must be defined • Sales area data (sales organization, distribution channel, and division) must be assigned

to each plant that participates in intercompany sales processing • You must also create the following Sales master data: • A customer master record for intercompany billing ; this must be assigned to the ordering

company code. • Condition records for intercompany billing for every permissible combination of plant and

sales organization.

Working with a Special Customer Master

Record

A customer master record must be created to represent the ordering company. This is created in the sales organization representing the delivering plant.

When you create the special customer master record, you define how billing is carried out. You can maintain billing-related data just like in any other customer master record. For example, you can specify the periods in which intercompany billing is to be carried out.

If your intercompany business processing involves foreign currency conversion, you can control the exchange rate that the system applies. You control the exchange rate by entering a value in the Exchange rate type field in the Sales view of the customer master record.

When a delivering plant invoices a sales organization, the plant can use one of the following condition types:

• PI01 Intercompany: fixed amount per material unit • PI02 Intercompany: percentage of the net invoice amount

These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice.

The condition records you create and maintain for intercompany billing are the same kind of records that you create for pricing in general.

Create Condition Record for Intercompany

Processing

To create a condition record for one of the two condition types associated with intercompany business processing, proceed as follows:

1. In the SD Master Data Screen select, Conditions → Selection using condition type → Create.

The Create Condition Records screen appears.

2. Enter one of the following conditions in the Condition type field:

– PI01 (intercompany price)

– PI02 (intercompany %)

3. Choose ENTER. 4. Enter the following data:

– The sales organization of the sales order (i.e. the ordering company)

– The delivering plant

– The material, if necessary

– The rate at which the plant will charge the sales organization that processes the orders (percentage of net invoice value or fixed amount per sales unit of the material).

5. Save the condition record.

Working with Intercompany Sales Orders

When you create a sales order, you specify the sales organization of the ordering company code. The system can propose a delivering plant from the following master records:

• Customer-material info • Customer • Material

The order of priority is as in the list above.

To maintain the delivering plant information in the sales order, select one of the following:

• for the whole sales order: Overview → Procurement • for each item: Item → Business data

You can overwrite the proposed delivering plant or use a matchcode to list the alternative plants from which the material may be delivered.

The system then checks to see if the combination of sales organization and delivering plant is allowed. If it is, you can proceed with the intercompany transaction.

The system automatically carries out pricing using pricing master data from the sales organization.

The intercompany charge appears in the pricing screen of the sales order as a statistical value (the charge has no effect on the final value of the sales order for the customer). Since the intercompany charge is of internal interest only, this pricing element is not printed out on documents for the customer.

Stock Transfer Using Stock Transport Order

Use

A number of procedures are available to enable you to transfer materials from one plant to another:

• Stock Transfer Between Plants in One Step • Stock Transfer Between Plants in Two Steps • Stock Transport Order Without Delivery • Stock Transport Order with Delivery via Shipping • Stock Transport Order with Delivery and Billing Document/Invoice

Features

Advantages of the Stock Transport Order

The transfer of stock using a stock transport order has the following advantages over the transfer of stock without a stock transport order:

• A goods receipt can be planned in the receiving plant. • You can enter a vendor (transport vendor) in the stock transport order. • Delivery costs can be entered in the stock transport order. • The stock transfer order is part of MRP: Purchase requisitions that were created in MRP

can be converted into stock transport orders. • The goods issue can be entered using a delivery via Shipping (LE-SHP). • The goods receipt can be posted directly to consumption. • The entire process can be monitored via the purchase order history.

Characteristics of the Various Stock Transfer Procedures

The following table lists the characteristics of the individual procedures used for stock transfer.

Plant to plant1 step

Plant to plant2 steps

St. trnsp. ord. w/o SD

St. trnsp. ord. with SD

St. trnsp. ord. with billing

Order typeMM-PUR

- - UB UB NB

Movement typeMM-IM

Transfer postg. using 301

GI: 303GR: 305

GI: 351GR: 101

GI: 641GR: 101

GI: 643GR: 101

Delivery type SD - - - NL NLCC

Billing type SD - - - - IV

Doc. type MM-IV - - - - RE

Price Valuation price Valuation price Valuation price Valuation price Pricing in SD

and MM

Planning via... Reservation - Purchase order

Purchase order

Purchase order

Stock after GI - Stock in transfer

Stock in Transit

Stock in Transit

(Stock in transit CC)

Delivery costs - - yes yes yes

Cross-company-code via...

Company code clearing

Company code clearing

Company code clearing

Company code clearing

Revenue account; GR/IR clearing

You can find an overview of all the movement types in the Implementation Guide (IMG) for Inventory Management in the step Copy/Change Movement Types.

Activities

Goods Issue in Inventory Management or in Shipping

You can enter a goods issue for the stock transport order in either Inventory Management (MM-IM) or Shipping (LE-SHP). For goods issues in Shipping, a replenishment delivery is created (see also Posting Goods Issue in Shipping).

Prerequisites for Goods Issues in Shipping:

To process the goods issue via Shipping, the following prerequisites must be fulfilled (see also Goods Movements via Shipping):

• In Customizing for Purchasing, a delivery type must be assigned to the purchasing document type. If the document type does not have a delivery type, you can post the goods issue only in Inventory Management.

• The customer number of the receiving plant must also be maintained in Customizing for Purchasing.

• In the Customizing system of Sales & Distribution, the shipping point determination must be maintained.

• In the material master record, shipping data must be maintained.

If the document type contains a delivery type but another requirement is missing (for example, shipping data), you receive either a warning message or an error message (depending on the system configuration) when you try to enter the stock transport order.

If you receive a warning message, you can create the stock transport order, but you can post the goods issue for this item only in Inventory Management.

Stock Transfer Using the Stock Determination Function

If you want to withdraw material for stock transfers from various storage locations and stocks according to a particular strategy, the R/3 System can support you using Stock Determination.

Stock Transfer Between Plants in One Step

Use

This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor Purchasing in the receiving plant is involved in the process.

Transferring stock in one step has the following characteristics:

• The stock transfer is entered as a transfer posting in Inventory Management. • The transfer posting can be planned by creating a reservation. • The quantity of the stock transferred is posted immediately from the unrestricted-use

stock of the issuing plant to the unrestricted-use stock of the receiving plant • The transfer posting is valuated at the valuation price of the material in the issuing plant. • If the plants involved belong to different company codes, the transfer between plants is

also a transfer between company codes. In this case, the system creates two accounting documents for the transfer posting. The stock posting is offset against a company code clearing account.

Stock Transfer Between Plants in Two Steps

Use

This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor Purchasing in the receiving plant is involved in the process.

The stock transfer includes the following processes:

1. A goods issue in the issuing plant 2. A goods receipt in the receiving plant

Transferring stock in two steps has the following characteristics:

• The transfer posting cannot be planned by creating a reservation. • The quantity posted from stock is first of all managed as stock in transfer in the receiving

plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant.

This enables the quantity "on the road" to be monitored.

• The transfer posting is valuated at the valuation price of the material in the issuing plant. • If the plants involved belong to different company codes, the transfer between plants is

also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Stock Transport Order Without Delivery

Purpose

This type of stock transfer not only involves Inventory Management but Purchasing in the receiving plant. The goods issue posting in Inventory Management is carried out without the involvement of SD.

Characteristics of a Stock Transfer Order

• The quantity posted from stock is first of all managed as stock in transit of the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant.

This enables the quantity "on the road" to be monitored.

• Delivery costs can be entered in the stock transport order. • The transfer posting is valuated at the valuation price of the material in the issuing plant. • If the plants involved belong to different company codes, the transfer between plants is

also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Process Flow

1. Creating a stock transport order in the receiving plant

Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement.

2. Posting a goods issue in the issuing plant

Plant B supplies the goods to plant A. Plant B enters the goods issue for the stock transfer order. The goods are then posted to the stock in transit of the receiving plant.

3. Posting a goods receipt in the receiving plant

Once the goods arrive in the receiving plant, the plant posts the goods receipt. The stock in transit is therefore reduced and the unrestricted-use stock increased.

The goods receipt is entered with reference to the purchase order.

Stock Transport Order with Delivery via

Shipping

Purpose

The following components are involved in this type of stock transfer:

• Purchasing (MM-PUR) in entering the order • Shipping (LE-SHP) in making the delivery from the issuing plant • Inventory Management (MM-IM) at goods receipt in the receiving plant

Characteristics of a Stock Transfer Order

• The quantity posted from stock is first of all managed as stock in transit of the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant.

This enables the quantity "on the road" to be monitored.

• Delivery costs can be entered in the stock transport order. • The transfer posting is valuated at the valuation price of the material in the issuing plant. • If the plants involved belong to different company codes, the transfer between plants is

also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.

Process Flow

1. Creating a stock transport order in the receiving plant

Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement.

2. Posting a delivery in the issuing plant

Plant B supplies the goods to plant A. Plant B enters a replenishment delivery in Shipping. The goods are then posted to the stock in transit of the receiving plant.

3. Posting a goods receipt in the receiving plant

Once the goods arrive in the receiving plant, the plant posts a goods receipt for the delivery. The stock in transit is therefore reduced and the unrestricted-use stock increased.

Stock Transport Order with Delivery and Billing

Document/Invoice

Purpose

With this type of stock transfer, the transfer posting is not valuated at the valuation price of the material in the issuing plant, but is defined in both the issuing and receiving plants using conditions.

Stock transfers that include deliveries and billing documents/invoices are only possible between plants belonging to different company codes.If you want to carry out a cross-company-code stock transport order with delivery but without a billing document, you must set the Relevant for

Billing (data element FKREL) indicator in Customizing of the item type to "blank" (Not relevant for billing).

The following applications are involved in this type of stock transfer:

• Purchasing (MM-PUR) in entering the order • Shipping (LE-SHP) in making the delivery from the issuing plant • Billing (SD-BIL) in creating the billing document for the delivery • Inventory Management (MM-IM) at goods receipt in the receiving plant • Invoice Verification (MM-IV) at invoice receipt in the receiving plant

Characteristics of a Stock Transfer Order

• The quantity posted from the stock of the issuing plant is managed neither in the issuing plant nor in the receiving plant. The quantity is first posted to the unrestricted-use stock of the receiving plant in the goods receipt posting. After the goods issue has been posted, the stock overview displays the quantity transferred as Stock in trans. CC. This stock is determined dynamically for stock balance display.

• With this transfer posting, price determination is carried out in both Purchasing and Sales & Distribution (SD).

o In Purchasing, the price of the material in question is determined in the usual manner (from the info record, for example).

o In SD, pricing is also carried out as normal during the billing process.

• The goods movements are valuated at the price determined in each case. • Accounting documents are created for the following transactions:

o Goods issue o Goods receipt o Billing o Invoice receipt

Stock Transport Order with Valuated and Non-Valuated Sales Order Stock

When entering goods issues for cross-company-code stock transport orders, you can work with both valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you determine the stock from which material is to be withdrawn by selecting the Dependent requirements indicator for individual and collective requirements. There are three options:

• Indicator set to Blank (individual and collective requirements): Material is removed from sales order stock

• Indicator set to 1 (individual requirements only): Material is removed from sales order stock

• Indicator set to 2 (collective requirements only): Material is removed from unrestricted-use standard stock

Process Flow

1. Creating a stock transport order in the receiving plant

Purchasing also determines the price for the materials.

2. Posting a delivery in the issuing plant

The issuing plant enters a replenishment delivery in Sales and Distribution. Unlike a stock transfer without a billing document, no stock in transit is created.

3. Creating a billing document in the issuing plant

The issuing plant creates the billing document for the delivery. SD also determines the price for the delivery

4. Posting a goods receipt in the receiving plant

The receiving plant posts a goods receipt for the delivery. The goods are posted to unrestricted-use stock

5. Posting an invoice in the receiving plant

The invoice referring to the billing document is entered in the receiving plant.

.Stock Transfer in Purchasing

Use

In Purchasing, you can request and monitor a stock transfer with a:

• Stock transfer order • Purchase requisition • Scheduling agreement

When a stock transfer involves two company codes and the issuing of a bill, you do not create a stock transport order but a standard purchase order(see also Cross-Company Stock Transfer).

Activities

Creating a Stock Transfer Order

From the Purchasing menu, choose Purchase Order → Create → Vendor/Supplying Plant Known. Choose order type Stock transfer order. The item category must be U (stock transfer).

Maintain the data for all items as required and save the stock transfer order. In Materials Planning, the stock transport order is taken into account for both the receiving and the issuing plant.

If the material is not valuated in the receiving plant, it is not possible to enter an account assignment. Therefore, the material can only be ordered for the warehouse.

Creating a Purchase Requisition for a Stock Transfer

You can request a stock transfer in a purchase requisition. From the Purchasing menu, select Requisition → Create. Maintain data as required. A stock transfer order is created from the saved stock transfer requisition once it has been released.

Creating a Stock Transport Scheduling Agreement

When you create a stock transport scheduling agreement, you can schedule the exact delivery dates for a stock transfer. From the Purchasing menu, select Outline Agreement → Scheduling Agreement → Create → Stock Transport Scheduling Agreement. Maintain data as required. The agreement type LU is defined in the standard system. The item category must be U. Enter the runtime end: Save the scheduling agreement.

Enter the delivery schedule for the scheduling agreement by choosing Outline Agreement → Scheduling Agreement → Delivery Schedule → Maintain.

Goods Issue for a Stock Transport Order

Use

You can either post the goods issue for a stock transport order in Inventory Management or in SD Shipping, depending on your system configuration. (Also refer to Stock Transfer Using a Stock Transport Order).

When the stock transfer involves two different company codes and a bill is issued, you have to post the goods issue in Shipping.

Posting a Goods Issue in Inventory

Management

Use

If you post the goods issue in Inventory Management, you subsequently enter the goods receipt with reference to the stock transport order.

Activities

From the Inventory Management menu, choose Goods movement → Transfer posting. Enter the data as required, entering the issuing plant and the issuing storage location as default values for the individual items. Choose movement type 351 (goods issue for a stock transport order).

Results of a Goods Issue

The goods issue posting results in the following:

• Documents

The system creates a material document for the movement. If the plants belong to different valuation areas, an accounting document is created in addition to the material document.

• Change involving stocks

The quantity is debited from the issuing plant in the receiving plant, the quantity is entered into stock (not into the unrestricted-use stock but the stock in transit on plant level). A receiving storage location has not yet been specified.

• Purchase order history

When you post a goods issue, the system automatically creates an order history record.

Posting a Goods Issue in Shipping

Use

If you process the goods issue via a replenishment delivery in Shipping (LE-SHP), you can then refer to the replenishment delivery or the stock transfer order at goods receipt.

Procedure

1. From the shipping menu, choose Delivery → Process delivery due list. The initial screen is displayed.

2. Enter the data required. Select Purchase order as Documents to be selected.

3. Choose Delivery → Display delivery due list. A basic list is displayed from which you can select the deliveries to be processed. The list only contains order items that contain shipping data.

4. Choose Delivery → Save. The system creates a replenishment delivery for the selected orders. A log of the deliveries created can be displayed.

5. When you choose the function Delivery → Change, you can enter the picking and post the goods issue.

Processing in the issuing plant is complete when the goods issue is posted.

Result

A replenishment delivery has the same effects as a goods issue in Inventory Management (see Effects of a Goods Issue Posting).

The quantity is debited from the issuing plant. In the receiving plant, the quantity is entered into stock (not into the unrestricted-use stock but the stock in transit on plant level). A receiving storage location has not yet been specified.

The system automatically creates an order history record for the replenishment delivery and for the subsequent goods issue posting.

Displaying Stock in Transit

The stock in transit is the quantity of a material that was withdrawn from the stock of the issuing plant but has not yet arrived at the receiving plant. You can display the stock in transit using the following functions.

• Stock overview • Plant stock availability list

Displaying Transit Stock in the Stock Overview

You can display the stock in transit in the stock overview of a material.

1. From the Inventory Management menu, choose Environment → Stock → Stock overview. 2. Enter your selection criteria (for example, the material and receiving plant). 3. Carry out the evaluation. A stock overview of your selected plants is displayed. 4. Select a plant. The stocks in the plant are displayed in a pop-up window.

Scroll down until the stock in transit is displayed.

Displaying Transit Stock in the Plant Stock Availability List

The transit stock for the receiving plant is also displayed in the plant stock availability list for a material. To do this, proceed as follows:

1. From the Inventory Management menu, choose Environment → Stock → Plant stock availability.

The initial screen for this function appears.

2. Enter the material and the receiving plant. 3. Enter the scope of list (for example, DD). 4. Carry out the evaluation. A list of the plant stock availability for the material is displayed.

This list also includes the stock in transit. In the case of inter-company-code stock transport orders with SD billing documents, the system does not create a stock in transit. For stock balance display, the posted quantity is calculated dynamically and displayed in the field Stock in trans. CC.

Posting a Goods Receipt for a Stock Transport

Order

Use

If you posted the goods issue in Inventory Management, you post the goods receipt in the receiving plant with reference to the stock transport order.

If you posted the goods issue in the Shipping component (LE-SHP), you can post the goods receipt with reference to the stock transport order or the replenishment delivery.

Activities

Posting a Goods Receipt for Stock Transport Order

You enter a goods receipt for the stock transport order in the same way as a goods receipt for a standard purchase order. However, it is not possible to post the goods receipt into goods receipt blocked stock since the stock in transit has already been valuated.

Posting a Goods Receipt for Replenishment Delivery

You enter a goods receipt for the replenishment delivery in the same way as a goods receipt for an unknown purchase order.

Results of the Goods Receipt

Placement into storage results in the following in the system:

• Documents

The R/3 system creates a material document for the movement. (The system does not create an accounting document because it is a transfer posting within the plant.)

• Change in stock in the receiving plant

The quantity is transferred from the transit stock to the unrestricted-use stock in the receiving storage location. The open purchase order quantity is also reduced with the stock placement.

• Purchase order history

At goods receipt posting, a purchase order history record is created automatically.

• Document Flow

At goods receipt for a delivery, the goods receipt in the receiving plant is documented in the SD document flow, based on the material document.

Cross-Company Stock Transfer

Use

Even when the plants involved in a stock transfer belong to different company codes, you can use conventional methods to transfer the stock:

• By transferring the stock between plants in one or two steps • By carrying out a stock transport order without the delivery function via Shipping • By carrying out a stock transport order with the delivery function via Shipping

In these cases, the value of the transfer posting is posted to a company code clearing account in both the issuing and the receiving plants. The stock transfer is posted at the valuation price of the material in the issuing plant.

Features

Stock Transport Order with Delivery Via Shipping and Billing Document/Invoice

You can carry out stock transfers with the delivery and billing function. In this procedure, the stock is transferred in the form of a sale between two plants.

Stock transfers that include deliveries and billing documents/invoices are only possible between plants belonging to different company codes.If you want to carry out a cross-company-code stock transport order with delivery but without a billing document, you must set the Relevant for Billing (data element FKREL) indicator in Customizing of the item type to "blank" (Not relevant for billing).

When you use the delivery function in Shipping, the whole transaction - from the delivery through billing and invoice verification - is reflected in the system. The following Shipping functions are available for this:

• Delivery:

For example, planning shipping activities, picking, packing

• Billing:

For example, price determination

Before you can use a stock transport order with the delivery function and a billing document, the plant must be assigned to a vendor. You maintain the vendor - plant assignment in the vendor master record.

If a user enters a vendor when creating a stock transport order, the plant is automatically copied from the vendor master record.

A stock transport order with delivery and billing is a mixture of a standard purchase order and a stock transport order: as in the standard purchase order, when items are entered (standard items

with no item category) price determination is carried out and shipping data established; as in the stock transport order, the transfer of stocks from one location to another is monitored.

Stock Transport Order with Valuated and Non-Valuated Sales Order Stock

When entering goods issues for cross-company-code stock transport orders, you can work with both valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you define from which stock material is to be withdrawn by selecting the Dependent requirements indicator for individual and collective requirements. There are three options:

• Indicator set to Blank (individual and collective requirements): material is removed from sales order stock

• Indicator set to 1 (individual requirements only): material is removed from sales order stock

• Indicator set to 2 (collective requirements only): material is removed from unrestricted-use standard stock

Prices

In Purchasing, the price of the material in question is determined in the usual manner (from the info record, for example).

In SD, pricing is also carried out as normal during the billing process.

Your company has to maintain settings in the Customizing system determining whether stock transfers between two plants should be with or without billing.

You can also determine whether individual users can carry out stock transfers, for example, with or without billing or in either of the two ways.

If you choose Purchase Order → Create → Stock Transfer (i.e. a stock transport order without billing) and stock transfer with billing has been defined for the plants in Customizing, a message appears indicating that you should create a standard purchase order.

Making the Vendor - Plant Assignment

To transfer stock with a bill being issued, a vendor master record has to be created for the issuing plant. You create the vendor master record in the same way as a standard vendor master record.

To assign a vendor master record to the supplying plant, proceed as follows:

1. From the Purchasing menu, choose Master data → Vendor → Purchasing → Change. 2. Enter the vendor and the purchasing organization.

Select Purchasing data and press ENTER .

The purchasing data detail screen appears.

3. Choose Extras → Add. purchasing data. A window appears in which you can enter the plant.

4. Save your data.

Process for Stock Transport Orders that Include

SD Deliveries and Billing Document

The process for stock transport orders with SD delivery and billing document includes the following steps:

1. Creating a Purchase Order

In the receiving plant, you create a standard purchase order for the vendor to which the issuing plant is assigned. To do this, choose Purchase order → Create → Vendor known. As a result of the vendor entered, the system recognizes that the purchase order is in fact a stock transport order with delivery and billing.

2. Creating Delivery and Billing Document

The issuing plant enters a delivery for the stock transport order and a billing document. This is an intercompany billing document (billing type IV). Pricing takes place as normal.

This intercompany billing document can be posted as an invoice for a purchase order via EDI using Idoc. It is then posted in Financial Accounting as a receivable in the supplying company code.

When the material leaves the plant, the issuing plant posts a goods issue for the delivery, resulting in a reduction in stock in the issuing plant. The total stock remains the same in the receiving plant. Unlike a stock transport order without billing, no posting is made to the stock in transit. You can see from the purchase order history that the material is "on the road". The posted quantity is displayed in the stock overview of the receiving plant as Stock in transit CC.

3. Posting Goods Receipt

When the goods arrive, the receiving plant posts a goods receipt for the purchase order. The unrestricted-use stock increases and an accounting document is created.

4. Posting Invoice Receipt

The invoice is checked with reference to the purchase order.

Valuation of Stock Transfers

The account movements that result from a cross-company-code stock transport order with billing document can be seen from the following example:

Plant 0002 orders 10 kg of a material from plant 0001. The following prices apply:

• Valuation price of material (plant 0001): 10 $/kg • Price for intercompany billing (plant 0001): 12 $/kg • Order price (plant 0002): 11 $/kg

The following postings are made for the individual transactions:

Plant Transaction Value Account

0001 Goods issue 100 - Stock account

100 + Change involving stocks

0001 Billing 120 - Sales revenue account

120 + Customer account

0002 Goods receipt 110 - GR/IR clearing

110 + Stock account

0002 Invoice receipt 120 - Vendor account

110 + GR/IR clearing

10 + Price difference account or stock account

You can display the value of a material’s cross-company stock in transit. To do this, choose Environment → Stock → Stock in transit CC from the Inventory Management menu.