Basic Rules in SD ConfigurationPurposeThis wiki page will discuss the basic rule / principle / information pertaining to SAP Sales and Distribution.Organizational structureSales OrganizationIts responsible for: Distribution of goods and services Negotiating Sales Conditions Product Liability and rights of recourse A sales organization is uniquely assigned to a company code Master data's are separately maintained for a sales organization All items in the Sales and Distribution document belong to a sales organizationDistribution Channel:This is the means through which products and services reach the customer. So, its responsible for: Defines responsibilities Helps in achieve flexible pricing Differentiate Sales statisticsDivision: A division is used to group products and services. A division represents a product line.Sales Area:A Sales area is a combination of Sales organization Distribution Channel DivisionEach Sales and distribution document is assigned exactly to one sales area.A sales area can belong to only one company code.Plant and Storage Location: A Plant is a location where stock is maintained Plant and storage location are used by all logistic area of R/3 System A Plant is uniquely assigned to a company codeShipping point: Shipping point is the highest level of organizational unit in shipping Each outbound delivery is processed by one shipping point Shipping points are assigned to a plant More than one shipping point can be assigned to a plantProcessSales and Distribution is SAP begins with establishing customer relationship and ends with invoicing for the delivery of goods or service provided to the customer.A standard process flow for sales transaction has the following flow:1. Inquiry2. Quotation3. Sales Order4. Delivery Document5. InvoiceThe customer order management cycle begins with pre-sales activities.Sales OrderA standard sales order in SAP contains: Customer & its partners details Material information Pricing conditions Delivery dates and quantities Shipping/Transportation information Billing information Accounting Interface information Required Output Details Document StatusInventory sourcing at Sales Order & DeliveryIt is handled through: Availability checkShippingSAP supports following shipping process: Outbound delivery creation Picking Packing Post Goods IssueBillingSAP supports following billing process: Creating invoices for products and services Creating credit and debit memo Cancel previously posted billing documents Automatically transferring billing documents to accountingWhen a billing document is created for a sales order we Creditthe sales revenue account Debitthe customer receivables accountSales Documents - Structure & related informationSales OrderA sales order is grouped into three structures1. Header2. Item3. Schedule LineOutbound deliveryA delivery document is grouped into two structures1. Header2. ItemIn standard system,severalorders can be grouped intosingleoutbound delivery, provided the referenced orders have same1. Shipping point2. Delivery date3. Ship-to addressPicking List or Transfer Order created for an outbound delivery created for a warehouse numberPost Goods IssueWhen PGI is done the system Updates the quantity in inventory management and delivery requirements in materials planning Generates additional documents for accounting Adds the delivery to the billing due list Updates status in sales documentsBillingA billing document is grouped into two structures1. Header2. ItemIn standard system,severalorders/deliveries can be grouped intosinglebilling document, provided the orders/deliveries have same1. Billing date2. Payer3. Billing addressThe effects of billing are Debit on the customer receivables account Credit on sales revenue account System updates - Sales information system - Sales statisticsMaster data in SAPIn sales and distribution, the following main master dates:1. Customer master2. Material master3. Condition master4. Output master5. Customer material information masterCustomer masterThe master data for customer is maintain in 3 major area1. General Data2. Company Code data3. Sales Area DataFollowing is the table which shows detail on three main areas of customer master and the tab pages & details found under each area:General DataSales Area DataCompany Code data

AddressSales DetailsAccount infolike Reconciliation account

Control datalike Transport.zone, tax infoShipping detailsPaymentlike Terms of payment, auto payment details

Payment transactionlike bank details, payment cardsBilling detailslike payment term, account detailsBilling Correspondencelike Dunning Procedure, payment notice

MarketingPartner functionsInsurance

Export data

Contact Person details

Material MasterIt is maintained in different views. Following are the important views maintained for material master in sales and distribution:ViewsKey Fields

1.Basic data 1 Base Unit of Measure Material Group Gross Weight & its unit Net Weight Volume & its unit Size/dimensions Languages Maintained

2.Sales Org 1 Sales unit Division Tax Data Min.orderqty Min. delyqty Rounding Profile

3.Sales Org 2 Matl statistics grp Material pricing grp Acct assignment grp Item category group Product hierarchy Material groups Product attributes

4.Sales : Gen/Plant Availability check Batch Transportation Group Loading Group MatlGrpPack.Matls Profit Center Negative Stock Serial Number

5.Foreign Trade Export Comm./imp. code no. Export/import group Control code Legal Control

6.Sales text

7.Accounting 1 Valuation Class Material Price Determination Price Control & Moving price or Standard price

Sales Document TypeSales document type like OR in Sales and distribution mainly controls: Number range Item No increment Reference mandatory Item division Read info record Document pricing procedure Incomplete messages Alternative sales documents Delivery block Billing block Immediate delivery Subsequent Delivery type Subsequent Billing type Proposed delivery date Lead time for delivery Proposed pricing datePlant Determination in sales orderTo determine the plant in a sales order the system checks the master in the following sequence:SequenceMaster Data

01Customer material info. record of the sold-to Party

02Customer master record of the Ship-to Party

03Material master record of the material

Shipping PointThe following is combination with which shipping point gets determined automatically in a sales order:Shipping point=Plant+Shipping Condition(Sold-to-Party)+Loading Group(Material master Gen: Plant data)

RouteRoute automatically gets determined in sales order based on following combination:Route=Departure Zone(from Shipping Point)+Shipping Condition(from Sold-to-Party)+Transportation Group(from Material master)+Transportation Zone(from Ship-to-Party)

Delivery SchedulingAs name denotes delivery scheduling is scheduling delivery for an order, which carries out through the following important dates:1. Material availability date2. Transportation planning date3. Loading date4. Goods Issue date5. Delivery dateAvailability CheckFollowing are features of availability check: It is carried out at item level for a plant It is done on the material availability date If material availability date is in the past the forward scheduling is done, if not backward scheduling is done.Item CategoryItem category controls behavior of material in sales order. In a sales document, it mainly controls the following: Relevance for billing of an item Billing block Pricing relevance Business data relevance item Schedule line allowed Item relevant for delivery Returns Determine cost Credit active Incompletion procedure Partner determination procedure Structure scope (relevant for bill of material explosion) Value contract material Contract release controlThe following is combination by which Item Category automatically gets determined in sales order.Item Category=Sales Document Type+Item Category Group{Material master)+Item Usage(if any)+Item Category of Higher Level Item(if any)

Schedule Line CategoryEvery item which has a delivery will have a schedule line and the schedule line category is determined with the following rule:Schedule Line Category=Item category+MRP Type(Material Master)

It mainly controls: Delivery Block Movement type Item relevant for delivery Req/Assembly Availability Product AllocationCopy ControlIt is normally set for Header Item Schedule line levelsTo control copying procedure we have Data transfer routines Copying requirements SwitchesTypes of copying control:S. NoTransaction CodeSource DocumentTarget Document

1.VTAASales OrderSales Order

2.VTLASales OrderDelivery Document

3.VTFASales OrderBilling Document

4.VTLFDelivery DocumentBilling Document

5.VTAFBilling DocumentSales Order

6.VTFFBilling DocumentBilling Document

Pricing ProcedurePricing is an important component in SAP Sales and Distribution. Once an order is entered taking into consideration some major factors, the pricing procedure for the particular order is determined.The major factors or combination is taken into consideration for pricing procedure determination in sales order:Pricing ProcedureDetermination=Sales Area(Sales Organization + Distribution Channel + Division)+Customer Pricing Procedure(Customer Master-Sales area data)+Document Pricing Procedure(Sales Document Type)

ShippingThe basis for shipping is delivery.Delivery document controls the following in deliveries Number range Item no increment Storage location rule Route determination Text determination Delivery split Gen. packing material / item Order requiredItem category for delivery controls: Check minimum delivery Availability check Relevant for picking Storage location required Determine storage location Automatic batch determination Text determination procedure Packing control Stkdeterm.ruleBillingBilling is sales process is of the critical integration point between SD and FI Module.It has got the following structure:1. Header2. ItemIt mainly controls: No. range Posting block(to controls posting of invoice to accounting) Relevance for rebate Account determination procedure Account determination recon account Account determination pay.cards Output determination procedure Cancellation billing typeAccount DeterminationAutomatic account determination in SAP Sales and Distribution sales order & billing documents take place based on following combinationAccount Determination =Sales Organization+Chart ofAccounts+Account AssignmentGroup for Customer+Account AssignmentGroup for Material+Account Key+G/L Accounton which the postingswill take place