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ENTERPRISE STRCTURE CLIENT (Company)-A client is a self-contained technical unit. A client can be considered to be a synonym for group.

Company Code A complete Accounting unit can be representing as the smallest organizational unit of external accounting. At Company Code level we create Balance sheet required by law Profit and oss statement. !ach company code represents an independent accounting unit. "everal company codes can use the same chart of account. Company code to company Company code to Credit control area Company code to Controlling area Company code to financial management area

Assignment #An F

Area is organizational unit which Plans$ Controls and %onitors funds and commitment budgets& Controlling area to financial management area Controlling area to 'perating Concern.

Sales !rgani"ation (he highest-level of organizational unit in ") is "ales 'rganization. *esponsible for )istributing goods and services$ +egociation sales conditions$ Product liability and other customer rights of recourse. "ales organization is also used to ta,e for example a regional$ national or international. A sales organi"ation assigned to a company code# $istri%&tion C'annel $istri%&tion C'annel represents strategies to distribute goods and services to customer. $C is assigned to a sales organi"ation# (he assignment is not unique. -ou can share C&stomer$ aterial and Condition master data by maintaining a reference(common $C. $i)ision A $i)ision is used to group material and services. A material can have only one )ivision. .e can ma,e C&stomer* specific agreements for each )ivision$ for example regarding partial deliveries or pricing within )ivision. #/n C%/*& -ou can share C&stomer and Condition master data by maintaining a reference(common $i)ision. A $i)ision is assigned to a sales organi"ation. (he assignment is not unique. -ou can use cross di)ision to enter multiple materials with various divisions in a sales order. -ou can choose division specific sales$ it is controlled by customizing for sales document type. Sales area A Sales area is a combination of a Sales organi"ation+ $C and $i)ision. /t defines the )istribution channel of a "ales organization uses to sell products of certain )ivision By defining and assigning "ales 'rganization$ )C and division a "ales area not automatically formed$ you have to set &p a sales area# A sales area can %elong to only one company code# Assigning t'e sales organi"ation to company code creates t'is relations'ip# !ach sales and distribution document is assigned to exactly one sales area. (his assignment cannot be changed. 0arious master data depending on the sales area$ for example customer master data$ material master data$ price and discount. (his system also carries out a number of chec,s concerning the )alidity of certain entries according to the sales Area.

Sales area assigned to Credit Control Area# "ales office assigned to "ales Area "ales group assigned to "ales office. !mployee of a sales office can be assigned to sales group.

,&siness area T'e ,&siness Area is a separate %&siness &nit for -'ic' internal reporting can %e carried o&t . A company code may be divided into multiple business areas. A business area may also be shared by several company codes. Business area is not limited by company codes. 2or this reason$ the business areas in all company codes must have the same description. 3sing organizational unit is optional. Business area can be used to prepare balance sheets and profit and loss statements not only for company code$ but also for other internal areas #!.g.$ division-related&. (he relevant business area is determined for each order item according to defined rule. R&les for ,&siness area determination Business Area assignment by Plant and /tem division. Business Area assignment by sales area. Business Area assignment by "ales 'rganization and ).C$ /tem )ivision. Plant T'e Plant is a location where material is ,ept. *epresent a prod&ction facilities or aterial re.&irement planning in the "ystem. In sales and $istri%&tion$ A Plant represents t'e location from -'ic' aterials and Ser)ices are distri%&ted and corresponds to a distribution center. (he relevant material stoc,s ,ept here. A Plant assigned to a company code# In)entory )al&ation is done either at company code le)el or Plant le)el$ however the stoc, is managed at "torage location level. A $eli)ering plant assigned to Com%ination of Sales organi"ation and $istri%&tion c'annel# $eli)ering Plant $etermination in sales )ocument according to following step /# C IR 4. C&stomer aster-"hip to Party #"ales area- shipping tab page& 5. aterial aster- "ales 'rg. 1 0iew. C%/* has precedence over customer and material master.

A plant is essential for determine t'e S'ipping Point# /n absence of a )elivering plant determination there can be no automatic determining of shipping point or automatic tax determination$ no availability chec, can be carried out and no outbound delivery can be set up. S'ipping Point S'ipping Point highest organizational unit in "hipping. A s'ipping point is &nder client le)el# A s'ipping point assigned to a Plant . A "hipping point can be assigned to multiple plants. 0arious "hipping point can be assigned to same plant. (he "hipping point can be a loading ramp$ a mail depot or a rail depot. /t can also be a group of employees responsible only for organizing urgent deliveries. (he shipping point is responsible for processing shipping. Eac' !&t%o&nd $eli)ery is processed %y e0actly one s'ipping point# (he shipping point is normally determined automatically #At item level& for each item in the sales document. (he automatic default value can be later changed manually in sales order if we have planned for a different shipping point. .e can change shipping point in delivery document only at initial create screen before saving the delivery document. S'ipping point determination based on these combinations. $eli)ering Plant S'ipping condition- "ales document type '* Customer master data-"old to Party #"hipping (ab Page& Loading gro&p-%aterial master data #"ales6 7en8plant& "hipping condition from sales document type has precedence over that from customer master. 1are'o&se .arehouse having following organizational units for efficient processing of goods receipt and goods issue.

1are'o&se N&m%er2 (he entire warehouse structure is managed under one warehouse +umber. (his number represents the warehouse complex. .arehouse +umber assigned to a combination of Plant and storage location. -ou can group (ransfer 'rder based on warehouse number. Storage Type6 (he different warehouse areas$ which differ with respect to their organizational and technical features$ are defined as storage types #for example-high-rac, warehouse with random storage$ pic,ing warehouse with fixed bins$ or shipping area&. Pic3ing area6 Below the storage (ype level$ (he Pic,ing area group together storage bins from a pic,ing point of view. A delivery can be split up into different pic,ing areas to ma,e parallel pic,ing possible. Staging area6 (he staging area is a part of the warehouse where goods are stored immediately after unloading or shortly before loading. $oor6 A )oor can be used for both the inbound and outbound delivery of goods. ($oor determination ta3es place at t'e deli)ery 'eader le)el# Staging area determination can ta3e place at t'e deli)ery 'eader le)el and item le)el# $ifferent staging area at t'e deli)ery item le)el lead to a transfer order split %eca&se t'e staging area is a 'eader le)el in t'e Transfer !rder#) (he connection of the organizational unit in the warehouse to %% /nventory %anagement results from (he Assignment of .arehouse +o. (o a combination of plant and storage location. 4o& can 5ro&p Transfer order %ased on t'e -are'o&se n&m%er#

ASTER $ATA C&stomer master data+ C&stomer material information record+ material master data+ Condition master+ Common master+ Additional master data C&stomer master $ata (he Customer %aster data divided in following categories. 5eneral $ata6 store centrally-Client specific$ valid for all organizational 3nits. Sales Area data2 Company Code data /t includes all necessary data for processing 'rder$ )eliveries$ invoices and Cust. Payment. 5eneral data having on following tab Address2 +ame$ Address$ and anguage. Control $ata2 (ax /nformation Payment Transaction2 Ban, )etails ar3eting2 /ndustry$ Customer Classification Unloading Point2 goods receiving 9ours E0port $ata2 )ata for export control Contact Person2 Address of business partner Sales Area data having following tab pages. Sales2 "ales office$ sales district$ currency$ customer group$ Customer pricing procedure$ Price list. S'ipping2 )elivery$ "hipping condition$ )elivery Plant$ P') *elevance$ Partial delivery-Chec, Complete delivery by law$ (ransportation :one. ,illing2 /ncoterm$ (erm of payment$ Credit control area$ Account Assignment 7roup$ (ax. Partner F&nction2 (Can different or Identical) "old to Party$ "hip to Party$ Bill to Party$ Payer

Company Code data having on following tab Acco&nt management2 *econciliation account

Payment transaction2 Payment method Correspondence2 )unning Procedure$ Accounting cler, Ins&rance2 Amount /nsured Any changes in the customer master do not get reflected in documents created prior to the change except for A))*!"". "ales organization has to maintain own relevant sales area data if they sell product to customer those belong to different sales organization. .e can maintain the /+C'(!*% in customer master record in various ways$ depending on the sales area data. Acco&nt gro&p controls c&stomer master# aster data proposal in sales document )elivery date and tax information- 2rom "hip to Party master record Payment terms$ Credit limit chec,- 2rom Payer master record Address to which invoiced to sent- 2rom Bill to Party master record "hipping conditions$ Pricing$ incoterms-2rom "old to Party

C&stomer material information record Cross reference from your customer;s material no. to your material and customer material description. By this sales order can be placed with the customer;s material no. by using 'rdering tab page /t ,eeps information about $eli)ering plant+ C&stomer material no#+ and $eli)ery agreement*Complete(Partial aterial master data ,asic data / (valid all module area)*'ld %aterial no.$ )ivision$ %atererial group$ %atererial group pac,aging material$ Base unit of measure$ 7eneral item category group Sales2 sales org# /2 )elivering Plant$ %aterial 7roup$ )ivision$ Condition$ (ax data$ Cash discount$ %inimum 'rder quantity$ %inimum )elivery <uantity Sales2 sales org# 62 %aterial group$ Bonus 7roup$ Product hierarchy$ 7eneral item category group$ /tem category group$ Product attribute Sales2 5en(Plant data2 Availability Chec,$ (ransportation group$ loading group$ Batch %anagement$ %atererial group pac,aging material$ "erial no. Profile RP 72 Availability Chec,

Plant(data storage /2 Batch management$ "torage condition Plant(data storage 62 "erial no. Profile Foreign trade2 !xport6 !xport8 import group$ *egion of origin Sales Te0t2 /tem text for sale aterial aster is controlled %y aterial Type

TA, PA5ES F!R SALES $!CU ENT Initial screen* Create -it' reference+ Sales+ Item !)er)ie-+ ordering Party# Create with reference* in.&iry+ 8&otation+ !rder+ Contract+ Sc'ed&ling agreement+ ,illing $oc#

'verview screen* Sales+ item !)er)ie-+ Item details+ !rdering Party+ proc&rement+ S'ipping+ Reason for re9ection#

SALES Sales $oc&ment A sales )ocument has three level*:eader+ Item and Sc'ed&le Line (he so&rces of data in a sales doc&ment are aster data C&stomi"ing !t'er S$ doc&ment(E0isting doc&ment -it' data :ard coded controls .hen you create a sales document$ you can also enter the S'ip to party instead of sold to Party . (he system then determines the "old to Party from the ship to party customer master record. /f there are several possible sold to parties for ship to party$ the system displays a selection screen with possible alternatives. /n sales order with fast c'ange option you can change > Reason for re9ection$ $eli)ery %loc3$ ,illing %loc3$ deli)ery date$ deli)ery priority and Plant. .ith ass c'ange option in a sales document list you can change- Plant+ aterials+ c&rrency and Pricing# A ,illing ,loc3 can assigned at sales document 'eader le)el and item le)el# A deli)ery %loc3 can assigned at sales document 'eader and sc'ed&le line le)el# An item stat&s is deemed completely if it has re9ected %y gi)ing a reason of re9ection. !xample of "ales document (ype Pre*sale p'ase IN ; In.&iry 8T ; .&otation Sales P'ase !R ; Standard order R! ; R&s' order CS ; Cas' sales CF ; Consignment fill*&p F$ ; Free of c'arge deli)ery !&t Line agreement 8C ; .&antity Contract $S ; Sc'ed&ling Agreement 8P;RentalContract 1</ ; 5eneral )al&e contract Complaints RE ; Ret&rns CR ;Credit memo re.&est S$F ; Free of c'arge s&%se.&ent deli)ery $R ; $e%it memo re.&est

/mportant Controls of "ales )ocument (ype. Reference mandatory from any other )ocument. C'ec3 di)ision-"ystem reaction if division at item level is different from header level. Item $i)ision- /f you mar, this field$ the system propose the division from the material master record of the item else the division in the sales document header also count for all items. C'ec3 credit limit /f the system reads any C IR or +ot. Incompletion Proced&re Assignment. $oc&ment Pricing Proced&re# essage a%o&t open 8&otation+ open !&tline agreement+ etc# Incomplete message s-itc'- when tic,ed doesn;t allow you to save an incomplete document. .hen unchec,ed the incompleteness is controlled by status groups of /ncompletion og. $eli)ery type# $eli)ery %loc3 S'ipping conditions

Immediate deli)ery s-itc' ,illing plan type ,illing Type ,illing ,loc3 -ou can limit the validity of your sales document type at the level of sales organization$ distribution channel and division #i.e. for sales area& Sales doc&ment Item category !xample of "ales document /tem category Pre*sale p'ase AFN ; standard item In.&iry A5T> ; Te0t item in .&otation Sales P'ase TAN ; Standard item TA$ ; Ser)ice in standard order ,?NN; Free of c'arge item in cas' sale <EN ; standard item in consignment iss&e !&t Line agreement < N ; standard item in .&antity contract 1?N ; Standard item in maintenance contract 1<N ; item in )al&e contract Complaints REN ; Ret&rns standard item 56T> ; Te0t Item in ret&rns <LN ; Free of c'arge item

/mportant Controls of "ales )ocument Item category ,&siness item*/f (he Business item at item level can be different from that at header level #2or example- "ales data$ "hipping data$ Billing data&. Completion R&le* (he rule for establishing when a quotation or contract is complete. Special Stoc3 indicator* 2or !x- Consignment stoc,. ,illing plan type ,illing rele)ance* 'rder related$ )elivery related$ etc ,illing %loc3 Sc'ed&le line allo-ed* Indicates whether you can create schedule line for the item. $ifferent Proced&res* Incompletion+ Partner determination and te0t determination# Str&ct&re Scope for ,! Pricing* /ndicates whether the system automatically carries out pricing at the item level. A&tomatic %atc' determination Item Category $etermination* Sales $oc&ment type = Item category gro&p = Usage = Item category of &pper le)el item# A "ub /tem is an item assigned to a higher- level item. Sc'ed&le line category !xample of "ales document (ype

Pre*sale p'ase AT ; In.&iry sc'ed&le line ,N ; .&otation Sc'ed&le line -it'o&t


!&t Line agreement C?; sc'ed&ling agreement -it' cons&mption* %ased RP Complaints $N ; Sc'ed&le line in Ret&rns -it'o&t $! ;Consignment ret&rns RP

Sales P'ase CP ; !rder sc'ed&le line -it' RP C! ; Consignment iss&e -it'o&t a)aila%ility c'ec3

Controls* $eli)ery ,loc3 o)ement type* If t'e material rele)ant for deli)ery# Transfer of re.&irements A)aila%ility C'ec3 o)ement type in normal*P5I*@A/ o)ement type in ret&rns*@B/ Sc'ed&le line cat# $etermination*sales doc# item categories = RP ( RP /* at# master) A Purchase requisition for purchase order can be generated automatically from sales order. -ou can deactivate requirements of transfer #%*P& and availability chec, at schedule line level. ,ill !f aterials (he item in ,! are controlled in sales order differently by "ales document Item Categories All /tems in the bill of material #B'%& that you want to control in the sales document must be flagged as relevant for sale. 9ence you should create a B'% material with B'% usage ? #")&$ all the items in bill of material will be automatically flagged as relevant to sales. (he B'% appears in the sales document as a structure with main item and sub-items. (he system explodes the B'%s in the sales order by automatically generating sub-items for the components. /tem category group in %aterial %aster for main item CERLA+ ain item is priced and s&% item is not priced# Item category of main item* TA8 and S&% Item*TAE /tem category group in %aterial %aster for main item CLU F+ ain item is not priced and s&% item is priced# Item category of main item* TAP and S&% Item*TAN

A)aila%ility c'ec3 An Availability chec, is carried out during sales order processing# An availability chec, occurs if* T'e %aterial requires an availability chec,*in material master (5en#(Plant or RP 7) (he %aterial availability chec,s in customizing*$eli)ery item Categories and Sc'ed&le line categories# Availability is chec,ed on material a)aila%ility date# T'e material a)aila%ility date is determined from deli)ery sc'ed&ling+ on this date enough material has to be available in time for delivery to the customer for their requested date. /n Customizing$ you can configure which in-ard and o&t-ard mo)ements are to be considered in availability chec,. Communication between sales and distribution and Procurement is carried out via requirements. (he transfer of requirements type can be influence the availability chec,. Any agreements made with customer about deliveries also affect the result of the availability chec,. !xamplecomplete8partial deliveries. (he indicator for controlling complete(partial deli)eries is proposed from the c&stomer master records. (he proposal for t'e item le)el comes from the c&stomer*material information record$ if a customer and material agreement maintained there. (hese indicators can be c'anged man&ally d&ring order entry# T'e a)aila%ility c'ec3 incl&des*

C&rrent stoc3 In-ard mo)ement !&t-ard mo)ement ,ac3order processing An order item is %ac3dated if (he quantity of an order item is not totally confirmed. (he request delivery date for an order item cannot be ,ept. (here are t-o type of %ac3order processing an&ally- 2rom list sales order processes them manually with reference to confirmation #"hort fall can be cleared&. ?ia Resc'ed&ling- .e can use the delivery priority #proposed from the customer master& and ma,e new order and confirmation date by scheduling. S'ipment or $eli)ery sc'ed&ling )ifferent (imes involved in delivery scheduling Pic3(Pac3 Time Loading Time Transportation Lead Time Transit Time ,ac3-ard sc'ed&ling*(he customer request delivery date is used to calculate the material availability date and transportation lead-time. (he delivery must be created on the earlier of two dates$ if both date are after the order date$ the customer;s requested delivery date can be confirmed. For-ard sc'ed&ling* /f both of dates not come after order date$ customer request delivery date cannot be confirmed. +ow system confirm the quantity on t'e %asis of Ne- aterial a)aila%ility date $ the earliest date at which the material is available in the warehouse. (wo schedule line are generated for the sale line itemo (he date of the first schedule line corresponds to the customer;s required delivery date and has no confirmed quantity. o (he date of schedule line shows the confirmed delivery date and the confirmed quantity. Assem%ly processing D a3e to !rderE %a,e to 'rder without assembly processing* Prod&ction 'rder is generated from planned order# %a,e to order without assembly processing is characterized by the fact that materials are not available in the warehouse but produced especially for a particular sales order. An individual Customer requirement is generated from the sales order item and transferred to material planning. .e can use material planning run to plan requirements$ once this has been done production is carried out. (he system returns the confirmed quantity and delivery date from production order to sales order. After the product has been manufacture$ goods receipt is posted in the sales order stoc, which is a special stoc,$ and which can only be used for a specific sales order. %a,e to 'rder with assembly processing Prod&ction !rder is generated from sales order (+o need material planning run)# (he individual components for the final product have already been producedB we only need to assemble the component according to the customer;s requirement. Complaints processing -ou can create (he Ret&rns or a Credit memo re.&est or a $e%it memo re.&est with reference to a sales order or a ,illing doc&ment# A ,illing ,loc3 is automatically assigned to t'e credit memo re.&est or de%it memo re.&est. (his prevents immediate billing. (he standard returns process in "AP has an order related Billing-Credit memo. 9ence$ credit memo generation can be carried out independently of the inbound delivery of returned goods.

-ou create the In)oice Correction re.&est or credit(de%it memo #without credit8debit memo request& with reference to the Billing )ocument. An In)oice correction re.&est is al-ays created -it' reference to t'e incorrect %illing doc&ment . A credit memo item and a )ebit memo item are created in the /nvoice correction request for every item in the incorrect billing )ocument. Change can only be carried out on the debit memo items #debit memo is in Change mode$ you can put Correct quantity here&. /t always delete in pair

Sales information system .ith "ales /nformation "ystem #"/"&$ you can compress data from sales document to obtain information. "ales information "ystem #"/"& is apart of ogistics information systems # /"&. ist fall in two categories- 'nline ist and .or, list. !nline List* Provide )ata for document$ )isplay document for example-2or a customer or a material$ with a specific status. Allow you to chec, and change the documents. 1or3 List* )isplay activities that need to be processed. Allow you to organize tas,s into efficient wor, units. .or, list allows you to select certain tas, in ") and to process them afterwards. -ou select the tas, according to area of responsibility on various selection criteria #such as date$ organizational element or customer&. T'e information system %ased on information str&ct&res . (hese are special statistic table$ which contain transactional data from different application. (his data is constantly updated by system. /nformation structure contained three basic type of information6C'aracteristics$ Period Unit$ and <ey Fig&res# "tandard information structures for ") available in the *85 systems are from "DD1 to "DD@$ -ou Can create your 'wn /nformation structure in Customizing using the name range "?D1 to "EEE. Standard Analysis6 A variety of tools are available that allow you to analyze. (hese include$ for example$ Cumulative Curves$ ABC analysis$ time series$ top-n evaluation$ and comparison option. (he analysis is based on the information structure. 2irst$ you select the required data scope depending on the characteristics and period of information structure. (his data is first displayed in basic list$ which can be drilled down to display different characteristics. Fle0i%le Analysis2* 2lexible analysis in /" allow you to determine which data in which format is combined to create an individual report. .ith 2lexible Analysis you can combine characteristics and ,ey figures from different information structure in one list. $ata flo Information is transferred from t'e preceding doc&ment to s&%se.&ent doc&ment# )escribes the mapping of business process in sales by creation of sales document with reference of preceding document$ this enable document flows to be built up that describe business process. (his allows you to copy partial quantities or all the item and quantities in reference document directly by choosing /tem selection. -ou can select certain items and can change quantities before they are copied. )ocument 2low A sales process is made up of the sequence of individual process steps$ recorded as documentsB this process chain is stored in the document flow. -ou can view all the documents within the document flow in a list$ you can branch to individual documents by double clic,ing and to display of a document and then return to document flow. /n status overview in document flow$ you can quic,ly find detailed information about current status of ") process. $oc&ment flo- &pdated+ -'en indicator F&pdate doc# Flo-G is set in Copying Control# Special ,&siness transaction *ush sale

"ales from Plant "cenario. "ales document type-*' )elivery (ype- 2 "tandard item category- (A+ F*'G+'*%H Billing (ype-24 F)elivery relatedH /mmediate )elivery switch Chec,ed 'nce the goods have been withdrawn from the warehouse$ Pic,ing and posting goods issue can begin. Cash "ale "ales from Plant "cenario. "ales document type-C" )elivery (ype-B0 "tandard item category- B0+ FC"G+'*%H Billing (ype-B0 F'rder relatedH /mmediate )elivery switch Chec,ed 'nce the goods have been withdrawn from the warehouse$ Pic,ing and posting goods issue can begin. Consignment processing /n consignment processing$ goods are delivered to thr customer but remain the property of company in special consignment stoc,$ however they actually used. An invoice is not created until the customer-withdrawn goods from consignment stoc,. 3p (ill that point$ the customer has the right to return consignment stoc,. Scenario !rder $eli)ery Pic3ing 5oods iss&e ,illing Fill &p (CF) -!" -!" -!" -!" +' Iss&e (CI) -!" -!" +' -!" -!" Pic3&p (CP) -!" -!" +' -!" +' Ret&rns(C!NR) -!" -!" +' -!" -!" )elivery free of charge and subsequent deliveries $eli)ery free* of*c'arge F2)H. /tem category is I + Fwith 2) G +'*%H. I + is not relevant for pricing S&%se.&ent $eli)ery Free of c'arge F")2H has reference mandatory to a preceding sales document. /tem category is I + Fwith ")2 G +'*%H.I + is not relevant for pricing Partner $etermination C&stomer master Sales doc&ment 'eader Sales doc&ment item $eli)ery Type S'ipment Type ,illing :eader ,illing Item Sales Acti)ities

Incompleteness /t presents the function of the incompleteness chec,. As part of editing sales documents$ the system can chec, whether all necessary information has been defined in document$ if not document is incomplete. Incompletion Log- T'e incompletion log is a list of containing all information t'at 'as %een defined as rele)ant for t'e sales doc&ment+ t'at 'as not %een processed d&ring sales doc&ment processing# (his list can be called and processed manually or automatically on saving the sales document. .e define these data fields in customizing for incompleteness og. Incompleteness Log F&nction available for Sales* :eader Sales* Item Sales* Sc'ed&le Line Partner


Sales acti)ities $eli)ery 'eader $eli)ery Item

!&tline agreement T-o types* Contracts and Sc'ed&ling agreements "cheduling agreement (he "cheduling agreement contains fixed delivery dates and quantity and is valid for a certain period of time. .hen you enter schedule line for the item in the scheduling agreement$ the system adds up the quantities that have already been entered and compare them both the target quantity and the quantity already shipped. (his give you an overview of all the open quantity$ if the quantity in schedule line exceeds the target quantity$ system issue a warning message. Contracts (wo (ypes*8&antity contract and )al&e contract T'e contract does not contain any sc'ed&le line+ deli)ery .&antities or deli)ery date . /t is valid for a certain period of time. *elease orders are created with reference to a contract. "chedule lines are created in the release order when it is placed. -ou can choose materials directly or by exploding an assortment module #list of valid materials-%aster data for product&. -ou can create release order in any currency and the total value is updated in the currency of the contract. (he value of release order is compared with value still open in the contract. -ou can define how the system responds when this value is exceeded #sales document type& A value contract defines that your customer agrees to purchase a fixed total value #target amount& of goods and services during the defined period. -ou can have partner function AA as optional sold to party and A. as optional ship to party in the standard system. 4o& can maintain contract data at %ot' 'eader and item le)el in t'e sales doc&ment# /f you assign a contract profile to the sales document type$ the system automatically determine default values specific to the contract. (hese could be6 R&le for determining start and end of t'e contract $&ration category S&%se.&ent acti)ities Cancellation proced&re aterial $etermination %aterial determination provides you with a tool for automatic exchange of material in sales document. %aterial determination is carried out by condition technique. 4o& do not need a material master record for t'e material n&m%er t'at yo& are replacing# -ou can assign a substitution reason to every master record in material determination that defines how the material should be determined. /n standard system reason for substitution DDD? is for manual product selection and DDD=8DDD@ is for automatic product selection. /f automatic product selection is used$ the system may display #based on customizing& the entered and substitute material as main and sub-items in sales order. /tem data sales A contain information about material that was originally entered and reason for substitution. -ou can use product attributes in material master and customer master records to exclude a particular material from product list. -ou can re-run material determination when delivery is created. /f material determination is re-running$ the result of the substitution may change due to new availability situation. 4o& can assign a material determination proced&re to eac' sales doc&ment type# isting %a,e sure that your customer receives only specific materials. -ou enter these materials as a material listing. T'e material listing is controlled %y condition tec'ni.&e# -ou define in sales document type whether the system chec,s the material listing or not. !xclusion


%a,e sure that the customer does not receive certain materials. -ou enter these materials as a material exclusion. T'e material e0cl&sion also controlled %y condition tec'ni.&e# Free 5oods Condition tec'ni.&e is &sed for free good determination# 2or free goods determination system uses Sales area $oc&ment determination proced&re #"ales document type& C&stomer determination proced&re #Customer master data& 2ree goods can be part of the order quantity not included in the invoice. (his is called an incl&si)e %on&s quantity. (he order goods and the free goods both involve the same material. (he quantity units of the free goods and ordered goods must be same. /n incl&si)e %on&s quantities$ the extra goods are delivered free of charge and not typically his included in the invoice. (his can either be an additional quantity of the goods ordered or it can be another article. (he exclusive free goods appear in the sales document as an individual$ free- of- charge item. (he system re-reads the free goods master record in the sales order if the quantities in the main item change or if the pricing date changes. (he system then deletes the sub-items and re-creates them. Any man&al c'anges to t'e free goods .&antity are lost. /f pricing is re-run in the sales order$ it does not affect the free goods determination. $ELI?ER4 !ach outbound delivery starts at a s'ipping point$ continues along a ro&te$ and has s'ip to party as the destination. (hese elements are header fields in the outbound delivery. T'e SAP system s&pports t'e follo-ing f&nction -it'in s'ipping processing2 %onitoring of deadlines for reference document due for shipping Creation and processing of outbound deliveries %onitoring of goods availability %onitoring of capacity situation in the warehouse "upport for pic,ing #.ith lin, to the warehouse management system& Pac,ing of outbound delivery Printing and distribution of shipping documents Processing of goods issue Controlling through overviews of -'utbound deliveries currently in process -Activities still to be performed -Possible bottlenec,s Logistics E0ec&tion T'e logistics process in a company that covers the entire process chain from t'e )endor t'ro&g' t'e company -are'o&se+ prod&ction facilities+ and distri%&tion centers to t'e c&stomer# ! process includes (he goods receipt process (he goods issue process /nternal warehouse process (he transportation process 'rganizational structure6 logistics Plant+ Storage location+ 1are'o&se n&m%er+ S'ipping point -ou can model the structure of a corporate group by using Client and Company codes. A client is often synonymo&s -it' a corporate gro&p$ while a company code represents an independent accounting unit. Company codes are legally independent from one anot'er# (he plant plays a central role in logistics. A plant is a prod&ction facility or a location that handles material stoc,. /t could be a collection of several locations in one general vicinity with material stoc,$ which are ,nown as storage location. "toc, is managed at the level of the storage location.


/nventory valuation is done either at company code level or Plant level$ however the stoc, is managed at storage location level. "everal storage locations within a plant can refer to the same warehouse number . As a result$ they form t'e -are'o&se comple0 from the point of view of in)entory management (he connection of organizational units in the warehouse to %% inventory management results from the assignment of warehouse number to a combination of plant and storage location# (he organi"ational &nit of 1 - -are'o&se n&m%er$ storage type$ pic3ing are$ staging area and door# -ou can acti)ate lean 1 in c&stomi"ing at t'e -are'o&se n&m%er# A shipping point is an independent organizational unit at a fixed location that process and monitor outbound deliveries and goods issue. (he shipping point is directly under the client level. An outbound delivery is processed from a single shipping point. (he responsible shipping point is determined in the order at item level. A s'ipping point may also %e set as a goods receipt point+ -'ic' means it can also %e &sed for in%o&nd deli)eries# "tructure )elivery document A delivery )ocument has two level- :eader and Item# T'ere is no sc'ed&le line# (he reason is each schedule line in the sales order can become an item in delivery document. $eli)ery type control R&le for determining storage location*( ALA+ RETA+ Te0t+ partner+ o&tp&t determination proced&re Ro&te re*determination $eli)ery split %y -are'o&se n&m%er $eli)ery split %y partner A&tomatic pac3ing !rder reference $eli)ery item category controls C'ec3 "ero .&antity C'ec3 minim&m .&antity C'ec3 o)er deli)ery A)aila%ility c'ec3 control Pic3ing rele)ance $etermine storage location A&tomatic %atc' determination Pac3ing control Te0t determination proced&re Coping control-)elivery 3pdate document flow /n copying control table you specify6 .hich sales and distribution document types can be copied to which delivery typeJ .hich item categories are copied from reference documentJ -ou can also specify 3nder what condition data is copied from the order to the outbound delivery. 3nder what condition several orders can be combined in an outbound delivery. .hich data to be transferJ .hether the reference should be recorded in the document flow. .hen you copy an order item to a delivery$ the system copies the item category of the order item to the delivery. An item category is not specified for order-independent items in the delivery #for example- pac,ing material&$ for deliveries without reference to an order #)elivery type '&. /n such case the item category determine ta,e place on the basis of customizing setting which is same as that of sales document item category. $eli)ery item category det# - deli)ery doc&ment type G item category gro&p G &sages F) + #standard item without order& - 'G+'*%H Ro&te determination *oute determination is carried out in sales order item and depends on6 T'e depart&re "one- shipping point #customizing& ARE)


S'ipping condition-sales document type or sold to party T'e transportation "one- ship to party #shipping tab& T'e transportation gro&p-material master #general8plant& /n the order item$ you can manually overwrite the route that is determined. -ou can re-determine the route in the outbound delivery based on the weight #weight group&. .hether the route is redetermined depends on the configuration of the delivery type. S'ipment or $eli)ery sc'ed&ling )ifferent (imes involved in delivery scheduling Pic3(Pac3 Time Loading Time Transportation Time Transit Time "hipping point calculate6 - Pic3(Pac3 Time+ Loading Time *oute calculate6 * Transportation Time+ Transit Time Bac,ward scheduling* system confirms the quantity of delivery on the basis of c&stomer re.&est deli)ery date. 2orward scheduling* system confirms the quantity on the basis of +ew aterial a)aila%ility date. Precise scheduling-the system calculates and displays the results of scheduling down to minute. /f you have maintained the wor,ing times of the shipping point$ the system performs precise scheduling. )aily scheduling6 - the system uses days$ hours$ and minutes for calculation$ but only displays the resulting dates. *oute schedule6 - the route is used to determine the transportation lead-time and transit time. 2or (ransportation lead-time precise scheduling uses the wor,ing times of the shipping pointB daily scheduling uses the factory calendar of the shipping point. 2or the transit time both types of scheduling use the factory calendar of the route to determine when route is used. 4o& can &se t'e ro&te sc'ed&le to organi"e o&t%o&nd deli)eries from a partic&lar s'ipping point to different s'ip to party# (he route schedule generally contains6 Ro&te$ $epart&re date and time$ list of s'ip to party and itinerary #optional& -ou can use route schedules in sales order$ stoc3 transfer and o&t%o&nd deli)eries# /n customizing$ yo& define whether a ro&te sc'ed&le s'o&ld %e assigned for each s'ipping point$ order type+ p&rc'asing doc# type #)elivering plant& and deli)ery type# Pic3ing location ( storage location determination2 * ALA+ RETA+ ARE ALA2 * determination based on the s'ipping point+ t'e deli)ering plant+ and t'e storage location #%aterial masterplant data8storage 1& RETA2 * )etermination based on t'e deli)ering plant+ sit&ation+ t'e storage condition# ARE2 * 2irst %A A then *!(A !ptions for creating !&t%o&nd $eli)eries !ach outbound delivery starts at a shipping point$ continues along a route$ and has the ship to party as the destination. (hese elements are header fields in outbound delivery. -ou can store delivery agreements using the indicators in the customer master record of sold to party or in the customer material information. /f the customer allow order to be combined$ the *85 system combines orders when creating the delivery due list. 2or this the following characteristics should be same6 S'ipping point$ $eli)ery d&e date$ S'ip to party$ Incoterm$ Ro&te -ou can create an outbound delivery man&ally with or -it' o&t reference to a partic&lar order . 9owever$ if you create a delivery manually$ you cannot deliver purchase order or other request. )elivery due list (he delivery due list is a wor, list of all operations requiring deliveries "hipment /f you &se transportation f&nctions$ o&t%o&nd deli)eries are gro&ped together on the basis of &ser*defined criteria in a document called the s'ipment doc&ment.


S'ipment f&nction is optional# -ou can create a s'ipment after deli)ery creation or after P5I. -ou can invoice the customer for shipment cost. !&t %o&nd deli)ery monitor T'e o&t%o&nd deli)ery monitor displays all deli)eries t'at are still to %e processed or t'at 'a)e 9&st %een processed# -ou can use the outbound delivery monitor to execute important follow-on-functions in collective processing in the bac,ground # for example-transfer orde creation for pic,ing$ or posting of goods issue&. (ransfer order A transfer order is an instruction to mo)e material from a so&rce storage %in to a destination storage %in within a warehouse complex. (he transfer order include the information li,e-material n&m%er$ .&antity to %e mo)ed$ so&rce and storage %in# .ith .% precise inventory management at the level of the storage bin is possible and used for -are'o&se -it' random storage. (his is not possible with lean .% and hence suitable for fi0ed %in -are'o&se# -ou can 5ro&p Transfer order %ased on t'e -are'o&se n&m%er# Automatic or direct creation of transfer order if the systems determine o&tp&t type 1 TA at the header level of outbound delivery when delivery is being created. ,atc' management setting* %aterial master*Plant(storage / )ie- and p&rc'asing )ie-* Activate batch management. In c&stomi"ing- deli)ery item category+ sales item categories #automatic batch determination& -'en deli)ering a sales order+ t'is %atc' is copied to o&t%o&nd deli)ery# T'en yo& cannot c'ange %atc' in o&t%o&nd deli)ery# /f a batch has not been specified in the sales order$ you can enter one in the pic,ing overview screen of the outbound delivery. 4o& m&st specify a %atc' %efore goods iss&e# ,atc' split f&nction is &sed if deli)ery .&antities of an item are to be ta,en from different batches. /t can be done manually in %atc' split screen of deli)ery item or automatically using automatic batch determination+ for this customizing is done in delivery item category. Serial n&m%er -ou can assign a unique serial number to each material. (his is allo-s yo& to monitor goods mo)ement for individual materials. (o use serial numbers$ enter serial n&m%er profiles in the material master record (general(plant and Plant data(storage*6). "erial number is specified in the delivery item or the order. 4o& m&st specified serial n&m%er %efore posting goods iss&e# S'ipping related condition (he outbound delivery can contain shipping-related condition at header level. -ou can use the ") pricing technique. Assign the pricing procedure to the delivery type $eli)ery split .hen you split a delivery$ you create one or more new deliveries$ called result and the reminder. .hen you call the delivery split$ specify a split profile to determine the type of split. "plit profiles are define in customizing$ and assign to delivery type. )elivery split by warehouse number )elivery split by partner Pac3ing T'e pac3ing f&nction is available in >!rder #as pac,ing proposal)+ In t'e in%o&nd deli)ery+ In t'e o&t%o&nd deli)ery $ In t'e s'ipment doc&ment. Pac,ing control -ou define pac3aging material type and pac3aging material gro&p. Assign pac3aging material type to pac3aging material gro&p. Choose material type 0!*P for material master and maintain the pac3aging material gro&p in %asic


data / and sales2 general(plant )ie-s# 9owever$ if this field has not been maintain in the material master$ this material can be pac,ed in any pac,aging material-depending on the weight and volume. (he system can generate a separate item in outbound delivery for each pac,aging material. 2or this -ou must set item category determination in customizing. /n this context$ table entries with PACI usage are relevant. T'e deli)ering plant m&st %e determined &sing t'e plant determination rule in the pac,aging material type or must be entered manually. /f you want to bill the customer for pac,aging material$ item category should be determined as ) +. /f you use returnable pac,aging material$ you must create them in the material master with item category group !/9 #item category (A is determined&. .hen goods issue is posted$ the material is transferred to special stoc, for the customer. 5oods iss&e Posting goods iss&e in)ol)es an interface -it' FI as stoc3 )al&ation c'anges# After goods issue has been posted$ there is limited scope for changing the outbound delivery. (he prerequisites for posting goods issue is that pic,ing-relevant item are completely pic,ed #transfer order is confirmed&. (his means that the delivery quantity and the pic,ed quantity in the outbound delivery must be same. 7oods issue can be posted %y c'anging a single o&t%o&nd deli)ery $ %y collecti)e processing f&nction to select all deliveries for which goods issue is due to be posted$ can also &se t'e o&t%o&nd deli)ery monitor to do this and at t'e time of transfer order creation #to choosing adobe quantity 4& Any errors are logged when$ for example$ data s&c' as t'e %atc' or serial n&m%er is missing or when pic,ing has not been carried out fully for these items. /n this case$ goods issue is not posted. T'e goods mo)ement is controlled %y F o)ement type*@A/G (sc'ed&le line) !ffect after goods issue Red&ce -are'o&se stoc3 Post t'e )al&e c'ange to t'e stoc3 acco&nts in in)entory acco&nting Enter stat&s information in t'e o&t%o&nd deli)ery# Red&ce deli)ery re.&irement# Is store in doc&ment flo- and &pdate stat&s of preceding doc&ment Create -or3 list for %illing#

Cancel goods issue If goods iss&e for an o&t%o&nd deli)ery is canceled+ t'e goods iss&e posting is reset . (he system copies the quantities and value from the original goods issue document and carry out an inventory posting based on these quantities and values with a reversed G8- sign. /f the outbound delivery has been fully or partially billed you must first cancel the billing document$ then you cancel goods issue. After goods issue has been canceled$ the goods movement status of the outbound delivery is reset to FNot yet startedG. (his allows you to further process the outbound delivery #7oods issue& as usual. For eac' mo)ement type in in)entory management+ yo& m&st define a re)ersal mo)ement type in c&stomi"ing . +o additional settings are required for movement types used for goods issue posting. 8&ality management -ou specify in t'e .&ality management )ie- of t'e material master if a quality inspection is to be carried out for the material. .hen the outbound delivery is created in ")$ <% automatically creates an inspection lot for the delivery items that are relevant for inspection. (he usage decision represents the completion of a <% inspection. )epending on the customer$ or on the customer and the material together$ you can specify if the inspection log must be accepted before goods issue can be posted. -ou initiate printing of a certificate of quality from output control of the outbound delivery at item level. P!$ settings -ou need to define which deli)ery item categories are rele)ant for t'e P!$ process . -ou also need to define reason for de)iation$ and in the c&stomer master data #sales area- shipping tab& specify P!$ rele)ance#


(he system creates the billing document based on the correct #verified& quantity. (he creation of a billing document using the billing due list is %loc3ed &ntil proof of deli)ery 'as %een confirmed#

TA, PA5ES IN $ELI?ER4 $!CU ENT !)er)ie-2 * Item o)er)ie-+ Pic3ing+ Loading+ Transport+ Stat&s o)er)ie-+ 5oods mo)ement data#

?ARI!US C!LU NS IN PRICIN5 PR!CE$URE (R?AAA/) Step+ Condition co&nter+ Condition type+ $escription (condition+ From+ To+ an&al+ mandatory+ Statistic+ Print (>* print of item le)el)+ S&%total (reference le)el)+ Re.&irement+ AltCty (Ro&tine)+ AltC,? (Ro&tine)+ Acco&nt <ey (ERL+ ERS)+ acco&nt 3ey* accr&als Step* Condition co&nter* Access n&m%er of t'e conditions -it'in a step in t'e pricing proced&re# $&ring a&tomatic pricing+ t'e system ta3es in to acco&nt+ t'e se.&ence specified %y t'e co&nter# PRICIN5 T'e term price %oo3 refers to a price determination strategy# Condition records Condition records %ased on 3ey fields #combination of ,ey fields called condition table& /n pricing condition records you can have a )alidity period+ maintain scale and specify &pper and lo-er limit for man&al c'anges# %anual changes only in this specified limit. -ou can define unlimited number of levels in a scale. -ou can do mass maintenance of conditions which means that condition records can now be maintained across all condition type and condition ta%les# Ne- condition records can be created with the reference of e0isting condition records . Indi)id&al condition records can be maintained man&ally. Ne- price f&nction allows you to maintain m&ltiple condition records simultaneously. -ou can maintain long text in the condition records for pricing and agreements #rebates$ sales deals and promotions& Pricing report To pro)ide an o)er)ie- of e0isting condition records# 4o& can generate a list of conditions for analysis# .hen you creating a new program for pricing report$ you first decide in which views you want to analyze condition records. -ou do this by selecting specific fields from the existing condition tables. )epending on which fields are selected$ the system will generate a list of tables$ which contain at least one of the selected field catalogues. 2rom this list of tables$ select which tables will appear in the report. Condition indexes 4o& can create and &se condition inde0es to searc' for condition records t'at -ere created for a )ariety of condition type and condition ta%le. Before you can use the indexes that are delivered in the standard version$ you must first activate them in customizing for sales. 9owever$ if you create your own indexes$ the system automatically activates each new index when you generate it. Condition ta%le Condition table is a com%ination of fields$ which form ,ey for a condition record. !ach condition ta%le defines &nder access se.&ence# All fields$ which are to be used for creating a condition table$ must be contained in the field catalogue. /t is possi%le to add additional fields to t'is catalog&e.


*elease procedure -ou can allow a release proced&re to be used when a condition table is created by selecting the -it' release stat&s chec,box. (his adds the following fields to the condition table automatically. I2*"(-*elease status as last ,ey field IB"(A(- Processing status as a field of the variable data part #non ,ey field& KT'e release stat&s is set indirectly %y defining a processing stat&s in c&stomi"ing for pricing and assigning a release stat&s to t'e processing stat&sL )ifferent statuses are Released ,loc3ed Released for price sim&lation Released for planning and price sim&lation# Access se.&ence An access sequence #search strategy& is defined for each condition type #except header and manual condition type& in pricing procedure. !ach access performed during pricing procedure$ the access sequence is made using condition table # Access se.&ence is a searc' 3ey for condition record+ -'ic' made &p of 3ey fields# Condition type (he condition type determines the category of a condition and describes how the condition is used. T'e calc&lation type and scale %ase type can %e controlled for eac' condition type# Conditions6 - Price$ discount8surcharges$ freight$ taxes Eac' condition type yo& can %e set as an a&tomatic s&rc'arge+ disco&nt or eit'er# As well as being determined automatically$ condition can also be entered manually in the sales document. -ou can prevent one condition type from being changed manually by ma,ing setting in customizing. 9eader condition #!.g. 9%DD$ A%/.& 9eader conditions are valid for all items. (hese are automatically distributed among the items based on net value. (he basis for distributing the header conditions can be changed in the pricing procedure by selecting the appropriate routine #e.g. weight$ volumes& in the AltCB0 field #alternative formula for condition base value& Special pricing f&nctions 7roup condition2*/n customizing you can set a condition type to be a group condition. (he condition base value #e.g. weight& is then calculated as the sum of the individual items within one group. !.g.-ID4E 7roup condition with varying ,eys 2 *2or group conditions with varying ,eys$ item quantities are accumulated for scale point determination purpose but the rate for each item is calculated from its individual condition record. !.g.-IDD? Condition update6 *0alue can be accumulated in the condition records and tested against limits. /n this way$ you can set a maximum condition value$ condition base value$ or number of orders for a condition. 2or this you must activate condition update switch in customizing for condition type. F(hen only these fields visible in condition recordsH Condition supplements2 *Condition supplements are group of conditions$ which are accessed together during pricing. Condition exclusion Condition e0cl&sion indicator can %e set in eit'er t'e condition type or t'e condition records# Condition types to %e compared are first placed in an e0cl&sion gro&p . )uring pricing$ the conditions which result in the best price #lowest charge or highest discount& are selected from this group. All others are deactivated. Special condition type %anual pricing2 * #!.g.-9%DD$ P+DD& :eader condition type : AA allows you to enter the order value manually. (he new order value is then distributed proportional the items$ ta,ing into account the previous net value. (axes are determined again for each item. Item condition type PNAA allows you to specify the net price for an item manually. (he original conditions are deactivated. %inimum price2 * #!.g. A%/.$ P%/+& :eader condition type (A I1)2 *you may create a minimum value for each order using condition type A I1. /f the value in the order header is less than this minimum order value during pricing$ the system uses the minimum as the net


order value automatically. T'e minim&m order )al&e is a statistical condition. Condition type A I1 is a gro&p condition and is divided among the different items according to value. Item condition type P IN2 *-ou can create a minimum price for a material using type P%/+. /f the minimum price is not met during pricing$ the system determines the difference using condition type P%/+ /nterval scale #P*D4&- "cale pricing -ou can maintain condition records with interval scales if the condition type is set to scale type ) in customizing. Inter)al scales cannot &se for gro&p conditions# *ounding )iff2 * 4o& can maintain a ro&nding &nit in ta%le TAA/R for eac' company code and c&rrency . Condition )/22 determines the difference amount. Condition type $IFF is a gro&p condition and is distributed among the different items according to value. Customer 9ierarchy Pricing Customer hierarchy are available in sales order management so that you can create flexible hierarchies to reflect the structure of customer organization. 3se Customer hierarchy during sales order processing and billing to determine pricing and running statistics. A Customer hierarchy consists of nodes. .hich are only valid for a certain period of time. (hey also be moved. /f a node is moved$ the system automatically reassigns all related nodes and customer master data. Settings* Create master records for each node Assign node to each other Assign the customer master records to the relevant nodes. K1it' c&stomer 'ierarc'ies+ yo& can assign price or re%ate agreements to a 'ig'er le)el nodeL Customer hierarchy accesses also provide clear and easy master data maintenance because the different condition records for a condition type can be created together in the quic, entry screen for maintaining condition. )iscount and surcharges Pallet discount-IPDD$ incomplete pallet surcharge IPD1$ %ixed Pallet )iscount IPD4$ "urcharges for incomplete mixed pallets IPD5 "tatistical condition type Condition type ?PRS -statistical condition used to retrieve the standard cost of the material has condition category 7. it accesses the material valuation segment of material master. Condition type S<T!- statistical condition used to retrieve the cash discount rate. /t has condition category !. Update price 3pdate prices on the condition screens is available at header and item level # in sales order and billing& 6 you can choose the pricing time in a dialog box. Calc&lation type (he calculation type for a condition type is defined in customizing. (his calculation type determines how prices or discounts and surcharges are calculated for a condition. Pricing proced&re T'e se.&ence in -'ic' t'e system accesses t'e conditions %y &sing condition tec'ni.&e in %&siness doc&ment is determined in t'e pricing proced&re# K*equirements$ routine and formula provide a method to modify the standard pricing logic to meet unique user requirementL Pricing procedure determination Sales !rg#= $C= $i)ision =$oc&ment pricing proced&re = C&stomer pricing proced&re Pricing determination is carried out using the condition technique. *equirements (6*Item -it' pricing+ BB* free goods pricing+ BH* Free goods) -ou need to determine Khow the system should use the conditions typeL by specifying the requirements.


-ou are able to ma,e access dependent on requirements to avoid unnecessary access$ this reduce the system load. *eference level (S&%total) Provides a method to specify a different basis to calculate the condition type and to group condition for subtotal. Pricing procedure can contain any number of subtotals. Condition type Are combined in the require sequence in pricing procedure. ar3 a condition type in t'e pricing proced&re as %eing2 A mandatory condition*P*DD A man&ally condition*9%DD$ P+DD For statistical p&rpose only# *0P*"$ "I(' Pricing type 4o& can config&re t'e pricing %e'a)ior in t'e pricing type. Pricing types are6 A# Copy pricing elements and update scale ,# Carry out new price C# Copy manual pricing elements 5# *e-determined taxes :# *e-determine freight >+ 4 *eserved for customer /*H *eserved for customer Ta0 determination T'e follo-ing factor play a role in ta0 determination ,&siness transaction* $omestic or e0port ( import Ta0 lia%ility of s'ip to party Ta0 lia%ility of material -ou can assign a R&le+ ,LAN<+ A+ , at the sales organi"ation le)el to determine tax identification number in t'e sales order and %illing doc&ment# Sales deal and promotion -ou can define a promotion or general mar,eting plan for a product line for a certain period of time. -ou can then lin, this promotion with specific sales deals$ which themselves lin,ed to special condition records. (hese condition records can be used for promotional pricing or discounts. Re%ate processing Creating rebates agreement2 * -ou may define rebates at as many levels as you require$ similar to any pricing condition. T'e re%ate agreement is created -it' a specific re%ate agreement type . (he feature of each agreement type set in customizing #li,e condition table and its access sequence&. Condition records are lin,ed to the rebate agreement specifying the rebate rate and the accrual rate. Processing rebates Re%ates are different from ot'er disco&nts in t'at t'ey are %ased on t'e sales )ol&me generated %y t'e c&stomer -it'in a specific period and are paid retrospecti)ely# A settlement run creates the required credit memo request automatically. .hen the rebate- relevant billing documents are processed$ accruals can be determined and posted to financial accounting automatically$ at the same time$ the system updates the rebate basis and the accrual amount on the rebate agreement sales volume screen. -ou can use the rebate credit memo to reverse these accruals. Accrual are cancelled automatically when a credit memo is created. (o function properly$ rebate processing must be active for6 Sales organi"ation T'e payer master T'e %illing doc&ment


"tep rebate processing6 *ebate processing begins by creating a rebate- relevant billing document. (he valid rebates condition type are determined by the pricing procedure using the rebate basis subtotal. !ach rebate condition type has an assigned access sequence #set in customizing&. (he system uses the access sequence to search for the valid rebate condition records. /f valid condition records are found$ the accrual rate is read. (he accrual amount is calculated using the rebate basis. (he system posts an accrual to financial accounting and update accrual in rebate agreement same time. *etroactive rebate agreements Allow you to ta,e into account billing documents created before the rebate agreement is created. (he rebate basis for the billing documents created previously is accumulated and recorded in the rebate agreement. (he accrual amount is not automatically updated for billing documents created previously. (his amount must be entered manually. *equirements Re.&irement 6I * /n the pricing procedure enforces that the rebate conditions are used only in %illing doc&ments# Re.&irement 6B C /n the pricing procedure enforces that the rebate conditions are used only in re%ate rele)ant*%illing doc&ments# ,ILLIN5 ,illing o)er)ie A Billing document has two levels-9eader and /tem .hen you create a billing document in account$ the *85 system carries out a debit posting on the customer receivables account and a credit posting on the revenue account. An important part of billing is the interface to financial accounting. (his allows documents to be creating automatically in financial accounting and controlling when you create billing documents. (he data$ which can be c'anged %efore an acco&nting doc&ment created 6 ,illing date+ pricing+ acco&nt determination+ o&tp&t determination. After posting accounting you can c'ange only o&tp&t data# -ou might not want the data to be transferred automatically for certain billing types. /n that case you can set a posting bloc, for the billing type concerned. /nter-company billing- a sales organization can also sell products supplied by a plant that is assigned to a different company code. Controlling t'e %illing process Billing type control (he billing type controls the whole document. (he billing types are used to cover the full range of business transactions during billing processing. /n billing type if K(ext )eliveryL is switched off$ the corresponding ") header8item texts are ta,en from the order. /f the switch is on then it is ta,en from outbound delivery. 9aving following control. Cancellation billing type +umber assignment #/nternal& Partners *ebate Posting bloc, Account determination /nvoice list type "pecial features of 2/ interface Basic function #(ext$ 'utput& /n customizing$ for item category #sales doc.&$ you determine whether billing is to be carried out with reference to a delivery or an order. (he system propose a relevant billing type from the underlying sales document type. 2or example$ in delivery related billing$ a standard order #'rder type '*& is invoiced using billing type 24.


In)oice com%ination and In)oice split /t is possi%le to incl&de %ot' order related and deli)ery related items in the same billing document. /f the header partner or data in the header field are not identical$ the system will automatically perform an in)oice split# /nvoice list6 !ach billing type to be included in an invoice list must assign an invoice list type. -ou also need to maintain the following master data6 1. )efine a factory calendar$ which specifies when invoice list are to be created. 4. !nter this factory calendar in the payer master record #Billing screen$ invoice list schedule field&. 5. %aintain condition record for condition type * DD for the payer. =. Create out put condition records for condition types *DD and *)D1. $ata flo- and coping control -ou can automatically fill t'e reference n&m%er and allocation n&m%er fields in the accounting document with numbers from ") documents. T'e reference n&m%er is in 'eader of t'e acco&nting doc&ment and is &sed for clearing# T'e allocation n&m%er is in t'e c&stomer line item and is &sed for sorting line n&m%ers# /n customizing for copy control in billing$ you can define which numbered will be copied as reference or allocations6 A# P&rc'ase n&m%er ,# Sales order n&m%er C# $eli)ery n&m%er $# E0ternal deli)ery n&m%er E# ,illing doc&ment n&m%er F# E0ternal deli)ery n&m%er if a)aila%le+ ot'er -ise deli)ery n&m%er# .hen the invoice list is created$ the reference number from the invoice list overwrites the reference number from the individual billing document. Copying requirement are ABAP routines. Before data is copied from the source document to target document$ specific requirements must be satisfied at each level of the document. Special %illing type Billing type in complaint processing Cancellation2 -ou do not need to ma,e an entry in coping control for billing cancellations. .hen you select cancellations$ you branch to an overview screen containing the original billing document as well as the cancellation. Before updating$ you can compare both documents in order to avoid any discrepancies during cancellation. Credit and de%it memos2 -ou can create credit and debit memos either to credit or debit memo request #sales document&$ or$ if your company does not require a release procedure in case of complaints$ directly with reference to a billing document. .e can also create credit and debit memo request without reference to a previous business transaction. 4o& can control in c&stomi"ing -'et'er t'e system is to set a %illing %loc3 a&tomatically for a credit or de%it memo re.&est# (he responsible employee can6 *elease the credit or debit memo request after review #by removing billing bloc,&. (he employee can decide the amount or quantity to be credited or debited. *eMect item in the credit or debit memo request and enter a reason for reMection. In)oice correction re.&est2 (he invoice correction request represents a combination of credit and debit memo request. (he invoice correction request must be credited with reference to the corresponding billing document #no reference to order or inquiry&. (he credit memo item cannot be changed. (he corresponding debit memo item$ however$ can be updated according to new characteristics #!.g. new pricing$ change in quantity& -ou can delete the credit and debit memos in pairs #unchanged pairs of items can be deleted all at once in this way&. Ret&rns *eturns are processed in the same way as credit memo request.

Pro forma invoice


-ou can create with reference to order or deliveries (his is generally used for export transaction )o not need P7/ before creating delivery related Pro forma invoice. -ou can create as many pro forma invoices as required$ since the billing status in the reference document is not updated. )ata from pro forma invoice is not transfer to accounting Cash sale 'rder related billing$ #B0& the order and delivery are created in one step$ although you receive a document for each other. (he goods issue is posted at a later time as a separate transaction so the customer does not have to wait. 'rder type C" is used for cash sales. /t has its own output type *)D5 which allows you to print an invoice from the order. +o output determination$ as this has already been carried out in order. +o new price determination$ as the pricing should not differ from the printed invoice. Posting in financial accounting is made to a cash settlement account$ not to the customer. Billing type "0 is used for cancellations in cash sales. Special %&siness transactions Billing plan-Periodic billing and %ilestone Billing -ou can assign billing plan at header level Nsales doc. (ypeO or at item level Nsales item category with billing relevance 1O Periodic ,illing Periodic billing is used to spread billing of full amount over several dates within billing plan. 7enerally use in rental and in service contract. ilestone %illing2 * /n the "AP *85 "ystem$ milestone is stored in a networ, along with planned and actual proMect data. %ilestone are assigned to the billing plan dates and bloc,ed for billing until the milestone is confirmed as completed. (he date proposal is used exclusively for milestone billing. /t determines a sequence of dates that are used as the reference for date determination during order processing. )own payment processing in ") )own payments are already created in the sales order. K At the corresponding due date$ a down payment request #Billing )ocument& is sent to customer.L (he down payment agreement can be assigned directly to an item$ or it can be defined as valid for all items in the order. As soon as billing date for down payment has been reached the system created a down payment invoice and sent it to the customer. (ax is determined and displayed automatically when the down payment request is created. T'e do-n payment re.&est (S$) is a&tomatically posted in financial acco&nting as a do-n payment re.&est (Posted as a noted item)# (he item ha special general ledger #78 & indicator 2$ which insures t'at posting+ is statistical. Posting is made to a different reconciliation acco&nt $ which allows you to differentiate down payment requests from other receivables. Billing type 2A: is used for creating the down payment request. /nstallment Payments /nstallment plans allow the customer to pay in installments. 'nly one billing document is created for all of the installment payments. (he printed invoice is created on the basis of this billing document and includes a list of individual payment dates and exact amounts. Eac' installment payment creates an acco&nts recei)a%le line posting in FI# 4o& m&st define installment payment terms in c&stomi"ing #number and amount of the installment in percentage and payment terms&. Acco&nt determination Account determination is carried out using the condition technique. (he slandered account determination procedure is I'2/DD$ which has the standard condition types as I'2/ and I'2I. Criteria for account determination C'art of acco&nt Sales organi"ation Acco&nt assignment gro&p for payer (Customer in to different group$ such as domestic and overseas.&


Acco&nt assignment gro&p for materials Acco&nt 3ey #Account ,eys are assigned to condition types in the pricing procedure$ so that conditions such as freight condition$ can be posted to special freight revenue accounts& S$(FI interface Sales organi"ation to company code assignment Acco&nt determination Copy control# Condition tec'ni.&e is &sed for Pricing Acco&nt determination aterial determination Listing E0cl&sion Free goods determination Ta0 determination Te0t determination !&tp&t determination TA, PA5ES F!E ,ILLIN5 $!CU ENT :eader * :eader+ :eader Partner+ Conditions+ Foreign Trade(c&stoms+ :ead te0t+ 5lo%al trade# Item C Item detail+ Item+ Partner+ Conditions+ Foreign Trade( c&stoms+ Item te0t+ P! date+ glo%al trade#

Consignments2 /n the consignment stoc, process$ a business allows stoc, or material to sit at the customer;s site or allows stoc, that is reserved for the customer to sit at its own site. 'nly after the customer has consumed or sold anything will the business issue an invoice Consignment Fill*&p *elvant *elvant *elvant *elvant +ot *elvant Consignment Iss&e *elvant *elvant +ot *elvant *elvant *elvant Consignment Ret&rn *elvant *elvant # /nbound& +ot *elvant *elvant #7oods *eceipt& *elvant Consignment Pic3*Up *elvant *elvant # /nbound& +ot *elvant *elvant #7oods *eceipt& +ot *elvant

!rder $eli)ery Pic3ing 5oods Iss&e ,illing

Consignment Fill*Up is a process when the goods move out of the company;s warehouse to the customer;s site. Consignment Iss&e is a process when the goods are consumed or sold by the customer. Consignment Ret&rn is a process used for return of goods bac, to the consignment stoc,. "toc, is Credit memo is generated. Consignment Pic3*Up is a process when the goods are removed from the warehouse where the consignment is lying because of some reason li,e defects$ spoilage or customer returns. (he stoc, can be ,ept at a independent location by defining a "pecial "toc, partner as customer master in P)D1$ who will be included in the partner functions#"B& of the customers. "toc, status can be viewed by %B?C. Consignment Fill*&p IB IB+ !1 Consignment Iss&e I! I!+ C1 Consignment Ret&rn I* I*+ )D Consignment Pic3* Up IA IA+ 21

!rder Type Item Category Sc'ed&le Line


o)ement Type





Credit anagement2 Credit management occurs either through "imple Credit chec, or Automatic Credit chec,. Credit %anagement enables you to minimize the credit ris, yourself by specifying a specific credit limit for your customers. Credit anagement enables you to minimize the credit ris, yourself by specifying a specific credit limit for your customers Config&ration Settings2 1. )efine Credit control area. 4. Assign Credit control area to company code 5. =. ?. @. A. Assign "ales area to Credit Control area )efine *is, categories # 9igh$ %edium$ ow& )efine Credit 7roups # 2or sales order$ )elivery$ Billing& Assign credit groups to sales document type. )efine Automatic credit control #Based on Credit control area$ *is, category$ Credit group&

$ynamic Credit Limit C'ec3# Chec, for )ynamic 'pen items - %ax 'pen item Q and +o days open. 'ldest open item > Static Credit limit C'ec3 .e defined static credit chec, at "ales order level$ "tatic credit limit chec, is a chec, comparing the credit limit assigned to the customer to the total value of open sales order$ plus the total value of open deliveries not yet invoiced$ plus the total value of billing documents that have been passed on to accounting$ but which have not been paid by the customer Note2 1. .e have used subtotal A #credit price& in our pricing procedure at (otal 0alue to perform the credit chec, 2. Before you proceed to create the sales order$ please note that in the define item categories in "P*'$ the credit active button is chec,ed for that respective item category which would be used in the sales order aintain Credit limit for t'e C&stomer 3se transaction code 2)54 to maintain credit limit for the customer. (he overview gives an overview of the credit settings in relation to the customer$ including his credit limit$ the exposure$ the percentage of the credit limit used$ his payment data$ and his ris, category. (he address view gives the customer;s address details as they appear on the customer master data. (he central data is a view that shows the total credit limit the customer can receive across all credit control areas as well as the maximum limit he can receive in one credit control area. (he status view shows the customer;s actual individual details according to the particular credit control area being investigated. (his includes his credit limit$ the percentage used$ the credit exposure$ the ris, category$ whether he is bloc,ed due to credit or not and so on. (he payment history view displays the payments made by the customer for a particular credit control area where a company code is assigned.

Re%ate Agreement2 A *ebate is a discount$ which is generated subsequently to a rebate recipient on the basis of a defined sales volume within a certain period #0alidity Period&. *ebate Agreements are created to determine the values required for a rebate settlement within the validity period of the agreement. 2or any *ebate agreement there is a pre requisite that the rebate processing is active for6 R "ales 'rganization R Customer R Billing )ocument


.henever a rebate relevant billing document is generated the accruals are automatically posted to the accounting documents. (his accrual is based on the accrual rate agreed upon in the rebate agreement. (he scales are used whenever the settlement of the rebate agreement is doneB the system will automatically generate the amount to be credited based on the scale in which the total sales volume will be lying. "o the accruals are not based on the scales but on the flat accrual rate. Before settling the rebate agreement the billing bloc, has to be removed from the credit memo request that is generated.

Config&ration settings2 1. )efining *ebate Agreement types > 7roup *ebate DD1$ %aterial *ebate DD4$ Customer *ebate DD5$ 9ierarchy *ebate DD= #change the validity format$ Payment %ethod$ %anual Accruals allowed or not$ "ettlement periods & 4. )efine Condition (ype 7roups > %aterial8*ebate 7rp DD1$ %aterial DD4$ Customer DD5$ 9ierarchy *ebate DD= 5. Assigning Condition (ype8(ables to Condition (ype 7roups > BDD1 to DD1$ BDD4 to DD4$ BDD5 to DD5$ BDD= to DD= =. Assigning Condition (ype 7roups to *ebate Agreement (ypes - DD1 to DD1$ DD4 to DD4$ DD5 to DD5$ DD= to DD= ?. Condition (echniques for *ebate Processing Create Re%ate agreement aster data2 1. ( Code is 0B'1 4. !nter Agreement type > DDD5 #Customer *ebate& and sales area. 5. !nter *ebate recipient # Customer &$ Payment method$ 0alidity period$ "ettlement period. =. !nter scale and save it. Note2 Credit memo will be generated after settlement has made. .ith reference to credit memo billing document will be created. Free 5oods $etermination ( Condition Tec'ni.&e) Incl&si)e R (he customer only pays for a part of the goods required. (he rest of the goods are free. (his is called /nclusive free goods and means that part of the purchase quantity is designated as free goods and is not billed. R (he material supplied as free goods always has the same unit of measure as the purchased quantity. E0cl&si)e R (he customer pays for the goods ordered and receives additional goods. (his is ,nown as exclusive free goods and means that free goods is granted for an additional quantity to that in the purchase order. %ore is delivered than was ordered and the additional quantity is not billed. R (he goods delivered as free goods do not have to be the same as material ordered. Constraints2 1. 2ree goods is currently only supported on a 161 basis. (his means that an order item can only be the source of one free goods item 4. 2ree goods is not currently supported in combination with material structures #e.g. product selection$ bills of material$ variants with B'% explosion&. 5. 2ree goods is currently only supported for sales orders with document category C =. 2ree goods is not currently supported for deliveries without reference to a sales order ?. 2ree goods is not currently supported for ma,e-to-order production$ third-party order processing and scheduling agreements. ( Code6 0B+1 Condition (ype8)iscount (ype6 +ADD 2ree goods pricing procedure6 +ADDD1 Activate at "ales Area8)oc PP8Customer PP /nclusive8!xclusive. /tem Category 6 (A++ Calc&lation type for determining free goods .&antity2 (he calculation rule defines the manner in which the free goods amount is calculated from the free goods quantity$ additional quantity and the document quantity. (he standard provides6


1. 4. 5.

Proportional 3nit *eference .hole 3nit 2ree goods quantity S 1DD piece Additional quantity S 5 pieces )ocument quantity S 4CD pieces6 2ree goods for proportional S C pieces #S 4CD 8 1DD T 5 rounded down& 2or unit-reference S @ pieces #S 4DD 8 1DD T 5& only 4 T free goods quantity considered 2or whole unit6 S D pieces 4CD is not a multiple of 1DD


Partner $etermination# Partner Types (he business partners that exist in the mar,et place are represented in the "AP system As partner types. A partner type helps to distinguish between various business partners. (here are various partner types defined in the system li,e6 I36 Customer /6 0endor AP6 Contact Persons 3"6 3ser Partner F&nctions A partner function represents the roles the business partners play within the business transaction. (he various partner functions defined in the system are6 "P6 "old-to-party "96 "hip-to-party C*6 2orwarding agent CP6 Contact person$ and many more. 'ne business partner can ta,e on many functions i.e. one customer can be ship >to party$ sold-to-party$ bill-to-party and payer. Steps for C&stomer master2 1. Partner )etermination Procedure > A7. 4. Partner functions in Procedure > "P$ "9$ BP$ P- in A7. # +on-%odifiable$ %andatory& 5. Partner )etermination Procedure to Account group. =. Partner functions > Partner (ype$ /ncompletion procedure$ 9igher-level partner function$ 3niqueness$ Customer hierarchy type ?. Partner function assignment to Account group. # "P > DDD1 "old to Party& @. Partner function conversion. "ales )ocument 9eader procedure is assigned to "ales )ocument type "ales document item procedure is assigned to item category )elivery it is assigned to delivery type "hipping it is assigned to shipment type Billing it is assigned to billing document type Billing it is assigned to billing document type Ret&rns )efinition A return is a sales document used in complaints processing for when a customer sends goods bac, . 3se -ou enter a return in the system if the customer returns damaged goods $ or goods that had been delivered for sale on approval. (he return causes the system to6 R *egister the receipt of goods using a returns delivery$ an d post the goods to stoc, # for example$ bloc,ed stoc, & . R Create a credit memo$ once you have chec,ed the goods and approved the complaint .


Ro&te $etermination# (he system determines routes automatically for a sales order item and can repeat the procedure for a delivery. /n order to define routes$ proceed as follows6 )efine the modes of transport. )efine the shipping types. )efine the transportation connection points and maintain the relevant data on the detail screen. )efine the routes and route stages. -ou can also maintain the route stages for several stages. odes of transport .e defined modes of transport$ road$ rail$ and air. -ou can have the following modes of transport6 By road By Air By Post 1. Chec, which modes of transport are relevant for your system. 4. )efine the modes of transport by entering an alphanumeric ,ey of maximum two digits as well as a text description. 5. Assign the mode of transport to a mode-of-transport type. (he mode-of-transport type serves for classification of modes of transport in dangerous goods management S'ipping Type -ou define the shipping types in combination with the mode of transport. (he shipping types can include the following6 (ruc, (ruc, with trailer Plane "hip o )efine the shipping types. !nter an alphanumeric ,ey of maximum two digits as well as a text description. o Assign one or several modes of transport to each shipping type. Assign the shipping types to a shipping type group$ which serves to determine the pricing procedure for calculating the shipping costs C'apter / $efine Transportation Connection Points A connection point can be one of the following6 an airport a border crossing a railway station 'n the detailed screen of a connection point$ you can also enter locations as a reference. 2or example$ you can define a shipping point or a plant as a node. Alternatively$ you can refer to an address. (he specification of a location or an address is required. 'n the detailed screen$ you can also enter an office of exit if you are processing export activities. 2or information on this subMect$ refer to the section J$efine c&stoms office and assign ro&tesJ . /f you want to have the system determine the office of exit for export activities$ maintain the address of the points that are defined as border crossings. )efine which points are relevant for your shipping processes. 2or each point$ enter an alphanumeric ,ey of maximum 1D digits. Also enter a text description for each point. %aintain the detailed data of the point. 2or each point$ you must either maintain an address or specify a reference to an existing location. C'apter 6 )efinition of route stages 'n the screen for the definition of the route stages$ you have two display options. )ouble-column display shows the beginning point and the destination point of the stage. -ou select this display if stages of type 4 #load transfer point& or type 5 #border


crossing point& exist. "ingle-column display is advisable if the route only contains stages of type 1 #transportation& and no inconsistencies occur. /n single-column display$ only the beginning points displayed since the beginning point of the next stage is the destination point of the previous stage. (he destination point does not$ therefore$ have to be displayed and there is more room for detailed information$ such as the shipping type$ transportation service agent$ total duration$ and so on. (o define the route stages$ proceed as follows6 Chec, which stages are relevant for you. )efine the stages. !nter the beginning point and$ if required$ the destination point. (o enter a point between the other points$ position the cursor on the point in front of which you wish to insert a new one and select /nsert. (o create a new point$ select Create. %aintain the detailed information of the stage. 2or example$ you can specify the transportation service agent$ the distance$ the shipping type$ or the driving time. C'apter 7 C'apter I $efine Transportation Kones /n this activity$ you can define transportation zones according to country and depending on your companyUs needs. (ransportation zones represent delivery recipient #ship-to party& regions or delivery shipper #vendor& regions. C'apter B C'apter @ aintain Ro&te $etermination (he route is the path a delivery follows from the delivering plant to the ship-to-party. (he system tries to determine a route for every item to be delivered. (he system uses four fields as search ,eys for determining the route automatically. (his data is normally defined in master records and in customizing6 (he departure zone in customizing for the shipping point "hipping condition from the sold to party (ransportation group in the sales specific material data (ransportation zone in the general data for the "hip to party !&tp&t $etermination (he 'utput )etermination component offers output functions for sales$ shipping$ transportation$ and billing to help you manage sales transactions with your customers and within your company. -ou can create sales activity output #for example$ customer telephone calls$ mailing campaigns& and group output #for example$ freight lists&. -our company employees can send and receive output. 'utput is directly lin,ed to the corresponding sales transaction #for example$ the system automatically sends an order confirmation via !lectronic )ata /nterchange #!)/& as soon as the employee creates an order&. 'utput determination will be carried out by condition technique. As we ,now from pricing and the condition technique$ when using the condition technique$ one should follow the maintenance activities in sequence6 Create Condition table Create Access sequence Assign the condition table to the access sequence Create Condition type Assign access sequence to the condition types Create the determination procedure and assign the condition types to it Assign the determination procedure

!&tp&t Type2 A2DD > /nquiry A+DD > <uotation. BADD > 'rder Confirmation.


Processing Ro&tine2 Print 'utput 2ax !)/ Partner F&nctions "old to Party "hip to Party Bill to Party Payer !&tp&t Proced&re2 0D?DDD > /nquiry 'utput 0D@DDD > <uotation output. 0DADDD > "cheduling 'utput 0DCDDD > Contract 'utput. 01DDDD > 'rder 'utput. Assignment of 'utput Procedure to )ocument types ( Code6 0011 to create master data. Acco&nt $etermination# Account determination is one such area wherein condition technique help determine the 7 account into which a particular revenue or expenditure can be posted. As in the case of pricing procedure determination$ we have condition types associated with account determination procedures each of which have an access sequence which in turn decides the sequence to search the various condition records maintained under each condition type and then finally return a condition value which in this case would be a 7 account. 0ery similar to KPricing procedure determinationL. /n fact all the condition techniques used in "V) have a similar pattern and thus ,nowing any one of it helps in understanding the others that much easier. (able +o 1 4 5 Ieys Customer 7rp 8 %aterial 7rp 8 Acct Iey Customer 7rp 8 Account Iey %aterial 7rp 8 Account Iey

Access "equence I'2/ V I'2* Condition (ype I'2/ V I'2I Account )etermination Procedure I'2/DD Assign Account )etermination Procedure to Billing )oc type. )efine Account Ieys. !* *evenue !*" "ales deductions !*B 2reight revenue !*2 2reight revenue !*3 *ebate accruals Assign Account ,eys to condition type in pricing procedure. Assign 7 Accounts DD1 Cust.Grp/MaterialGrp/AcctKey


002 003 004 005 901

Cust.Grp/Account Key Material Grp/Acct Key General Acct Key Sales org./Acct key/ !g.type

.ith Combination of Application$ Condition (ype$ Chart of Accounts$ "ales 'rg$ Account Assign group for Customer$ Account assignment group for %aterial$ Account ,ey > 5L Acco&nt

aterial $etermination ( Condition Tec'ni.&e) %aterial determination enables the automatic substitution of materials in sales documents during sales order processing. 2or example$ during the course of a sales promotion$ the system can$ during sales order entry$ automatically substitute a material that has promotional pac,aging. A consumer product may have a special wrapper for$ for example$ the Christmas season. 3sing material determination$ the system substitutes the material only during the specified period. /n addition$ you can use material determination if you want the system to automatically substitute$ for example6 customer-specific product numbers with your own material numbers "ubstituting discontinued materials with newer materials %aterial )etermination is triggered by the material entered in the line item of the sales order . (his material can be used o automatically swap one of the business products for another during certain periods. /t can also be use to swap a swap a customer;s part number with a number of products the user can select from. Condition (ype6 ADD1 > %aterial !ntered. Procedure 6 ADDD1 Assign Procedure to "ales )ocument type. )efine "ubstitution *easons. .e can specify additional control parameters and system responses for each substitution reason6 .e can specify whether the substituted material is included in relevant output types #for example$ order confirmation&$ so that you can tell what the original material was after material determination has been carried out. .e can control whether the system issues a warning message before it substitutes a material. .e can specify whether a material is automatically substituted by another$ or whether several possible substitutes are displayed for selection. .ith the outcome$ we specify whether a document item is replaced or whether the substitute is created as a sub item of the original entry. "ubstitution "trategy /t Controls whether product selection should occur automatically in the bac,ground or whether the alternative materials should be offered for selection in a dialog box. "ubstitution 'utcome Controls whether the outcome of product selection should replace the original entry or whether it should be recorded as a sub item of the original entry. ( code is 0B11 to maintain condition records8%aster data. $eterminations 1. Plant > C%/* #"old to Party& 0)?5 > CM "S V #$ D"#%$ 53 CM(1#)-VD53 sold-ship-material. KNMT C% #"hip to Party& than material- master


4. "hipping Point > 1. Plant 4. "hipping Conditions #Customer %aster or )ocument (ype& 5. oading 7roup #%aterial %aster& 5. *oute6 1. )eparture :one #from "hipping Point& defintiton-Wlogictic execution 4. "hipping Condition #)oc type or "old to& 5. (ransportation 7roup #%aterial-%aster& =. (ransportation :one #"hip to Party& #!ven .eight group can influence route determination& =. /tem Category > 1. "ales )oc (ype 4. /tem Category 7roup #%at %aster& 5. 3sage =. 9igher level item Category /(!% CA(!7'*- 2/! )"6 /(#/(!% CA(!7'*-& /" 0!*- B3:#B3"/+!"" )A(A& (' 7!+!*A /:!#7!+*!A C'+(*' & (*A+"P'*( #(*A+"AC(/'+ 2 '.& "!*0/C! X"#"!*0/C! %%A+A7!%!+(& B/ #B'%& A+) 0A 3!#C'+(*AC(& '2 *!"'3*C!#C'+(*' '2 *!"'3*C! *! A(!) B/ /+7&. /(!% (-P!6 B A+I > "PAC! 2'* "(A+)A*) /(!% A >2'* 0A 0! /(%! B > B2'* B(!P( C-paC,ing )-+ot relevant item. "P!C/A #"('CI& C'%P!(/('+#*3 !& /" B/ #%anage stoc, in a special way ! 'rders on hand I Consignment #vendor& % *et.trans.p,g vendor ' Parts prov. vendor P Pipeline material < ProMect stoc, 0 *et. p,g w. customer . Consignment #cust.& - "hipping unit #whse& & C'%P!(/('+#*3 !& !)#*!0! A+C!8P A+ (-P!8B 'CI&

Completion rule for quotation / contract

A B C ) ! B/ +ot relevant for completion /tem is completed with the first reference /tem is completed after full quantity has been referenced /tem is completed after the target qty is fully referenced /tem is referenced via contract release /tem is completed after full target value is referenced !)#*!0! A+C!

Indicates what the basis for billing should be.

+ot relevant for billing A )elivery-related billing document B *elevant for order-related billing - status order qty C *elevant for ord.-related billing - status target qty ) *elevant for pro forma 2 'rder-related billing doc. - status according to invoice qty 7 'rder-related billing of the delivery quantity 9 )elivery-related billing - no zero quantities / 'rder-relevant billing - billing plan Y *elevant for deliveries across !3 countries I )elivery-related invoices for partial quantity Pro forma - no zero quantities


% )elivery-related invoices-no zero qtys #incl main batch itm& + Pro forma - no zero quantities #including main batch items& P )elivery-related invoices for C"27 - +o batch split items < )elivery-related invoices for C*% * )elivery-related invoices for C*% - +o zero quantities " /B"-)/6 'rder-*elated Bill. )oc. with )P w8o Billing Plan ( )elivery-*elated C*% Billing with /0 in C*% 3 )elivery-*elated C*% Billing with /0 in C*% - +o :ero <ties Billing plan6 D1 %ilestone Billing D4 Periodic bloc, D1 2reight D5 !xport D= Pricing Bloc, D@ (emp admin #ex Cust& DE Credit memo 1D "ervices 14 )ealer change A0 Aviation inv split )2 "ales Area )el 2lag :E Above 0al. (hreshold :C Conco 'rder Bloc, :! !)/ Pricing Bloc, :% )elco 'rder Bloc, :P P') Confirmation :" "plit Billing :( "( /nterface Prcing +o pricing P Pricing standard A Pricing for empties B Pricing for free goods #1DDQ discount&

Statistical values
Indicates whether the system takes the value of an item into account when it determines the total value of a document.

Business data allowed at item level?

Indicates whether, during sales order processing, the business data that you enter for an item is allowed to differ from the business data in the header.

Schedule lines allowed

Indicates whether you can create schedule lines for the item. Items that are relevant for delivery, such as sales order items, can always have schedule lines. On the other hand, items that are not relevant for delivery, such as items in contracts and credit memo requests, do not have schedule lines.

Item is relevant for delivery

Indicates whether a text or value item is relevant during delivery processing.

Returns item
his item is a returns item if the field is selected.

Relevant for weight/volume

Indicator that controls whether the system calculates weight and volume for the item.

ID: Item with active credit function / relevant for credit

Indicates whether the credit management functions !credit checks and updating statistics" are active for the order, delivery, or invoice items.

Determine cost
Indicates whether, during pricing, the system determines the cost !stock value" of a sales document item.


?. "chedule time Category > /tem Category V %*P (ype #1st "earch& (han by /tem Category #4nd "earch& @. )elivery /tem Category > 1. )elivery )oc (ype 4. /tem Category 7roup 5. 3sage =. 9igher evel item Category A. "torage ocation )etermination > 1. "hipping Point 4. Plant 5. "torage condition #%aterial %aster& C. Account )etermination > 1. Chart of Accounts 4. "ales 'rganization 5. Ac Assignment 7roup #Payer& from customer master =. Ac Assignment 7roup of %aterial from %at %aster ?. Ac Iey maintained for each condition type in Pricing Proc E. Pricing Procedure )etermination > 1. "ales Area 4. )oc Pricing Proc #)oc (ype& 5. Customer Pricing Proc #Customer %aster& 1D. (ax )etermination > 1. Country V *egion of the )elivery Plant 4. Country V region of the "hip to Party 5. (ax Classification of Customer #"hip to Party %aster& =. (ax classification of %aterial #%at %aster& 11. /n lean .% > A Plant V "torage location is assigned to a .89 14. 2ree 7oods )etermination Proc is assigned to doc type V is determined by 1. "ales Area 4. )oc Pricing Proc #)oc (ype& 5. Customer Pricing Proc #Customer %aster& 1=. %aterial )etermination Proc is assigned to "al doc types and once the procedure is assigned to the doc type if conditions records are maintained than material determination can be carried out in that doc type. 7o to '01= Assign the %ateraial )eterminaton procdure.Assign the %aterial )etermination procedure.

0B11 see the list of condition records6

+ow create the sales 'rder entere Plnt %aterial entered 0alid on 0alid to )DD1 (!"(145 4@.D5.4D1D 51.14.EEEE
+ow enter (!"(14=5 ins sales order you will get the popup as,ing to substitute for


Integration SAP S$+ L FI T'e lin3 %et-een S$ and .hen you create sales order in ")$ all the details of the items are copied from %aterial master of %%. %*P and availability chec, related data is also ta,en from %% although you control this data in ") also. .hile you create inbound8outbound delivery with reference to a sales order$ the shipping point determination ta,es place with the help of the loading group$ plant data$ shipping conditions etc. (his also refers to %aterial %aster. (he material which you are entering in a sales order must be extended to the sales area of your sales order8customer otherwise you cannot transact with this material. (here are many such lin,s between ") and %%. &SM'Create Copy C(eck )eli*ery e!ten).+&SM'C, - . No- t'e lin3 %et-een S$ and FI 2* 1. .henever you create a delivery with reference to a sales order$ goods movement ta,es place in the bac,ground. eg. /n case of standard sales order$ you create an outbound goods delivery to the customer. 9ere movement @D1 ta,es place. (his movement is configured in %%. Also$ this movement hits some 78 account in 2/. !very such movement of good s hits some 78 account. 4. (he accounts posting in 2/ is done with reference to the billing documents #invoice$ debit note$ credit note etc& created in "). (hus this is a lin, between ") and 2/ 5. (ax determination6 /n case of a tax determination also$ there is a direct lin, between ") and %% &S/'Mo*e0ent 1ost %a!. +&S/'M1%. S$ Integration points -it' ot'er mod&les ") module is highly integrated with the other modules in "AP. Sales !rder C /ntegration Points %odule ZAvailability Chec, %% ZCredit Chec, 2/ ZCosting C'8 %% Z(ax )etermination 2/ Z(ransfer of *equirements PP8 %% S'AC2%2. S'A+A*aila3leM.C2+Cre)it+F) Cost+CO).%2+%a!+%/. %rans4er+%1... $eli)ery L 5oods Iss&e C /ntegration Points %odule ZAvailability Chec, %% ZCredit Chec, 2/ Z*educes stoc, %% Z*educes /nventory [ 2/8 C' Z*equirement !liminated PP8 %% -'AC#2 -'A+A*aila3leM) C+Cre)it+F).#2 +#e)uce+#/. re5uire0ents+#1. ,illing * /ntegration Points %odule Z)ebit A8* 2/8 C' ZCredit *evenue 2/8 C' Z3pdates 78 2/8 C' #(ax$ discounts$ surcharges$ etc.& Z%ilestone Billing P" B-)C3%#"pell B)3%& 6'-+-e3it/.C+Cre)it/.7+7p)ates/.M+Milestone1.. Ret&rn $eli)ery L Credit /ntegration Points Z/ncreases /nventory Z3pdates 78 emo * %odule %% 2/


ZCredit %emo 2/ ZAdMustment to A8* 2/ Z*educes *evenue 2/ #'"C7A# #'"+"n*entory.C+Cre)it 0e0o.7+7p)ate.A+A)8ust0ent to A9#.#+#e)uce #e*enue. #e3ate:;601. Create t(e con)ition an) settle t(e re3ate later. Consign0ent processing:

Consignment Stock Processing Purpose Consignment goods are goods which are stored at the customer location but which are owned by the company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required. Consignment Fill !p" Consignment fill up replenishes the stock at the customer site. #ince the goods remain the property of the company, this process is not relevant for pricing and consequently not for invoicing either. Create a sales order using order type $%. &nter the required data on the customer, the consignment goods and the delivering plant. &nter all other relevant data and save the order. Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue. The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. 'f special stock of this kind already e(ists in the delivering plant for this customer, the goods are posted to this special stock. Order type" $% )document category C" sales order* #td. +elivery type" ,F 'tem category" $%- )not relevant for pricing and billing* #chedule line category" &. )relevant for deliveries, uses availability check, /0. )1' consignment" lending* to post the stock into a special consignment category in the delivering plants stock for that particular customer and material* Copy control rules for the sales doc, item category, and schedule line category. !se trans 2%34 or 22%& to check the stock. 'n this case, 5ccounting document is required to be generated only for ta(es, as the stock is still the ownership of the company. 'n the pricing procedure all condition type e(cept for Ta(es should be statistical. Consignment 'ssue" The Consignment issue enables the customer to withdraw consignment goods from the special stock that are to be used or sold. Create a sales order using order type $&. &nter the required data for the customer, the consignment goods and the plant to which the goods are to be returned. 5@

&nter all other relevant data and save the order. Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue. The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock. 'nvoice the delivery which issues the consignment goods. Order type" $& )document category C" sales order* #td. +elivery type" ,F 'nvoice" F6 'tem category" $&- )relevant for pricing and deliver related billing, special stock indicator 7, should determine cost too* #chedule line category" C. )relevant for deliveries, uses availability check, /00 )1' issue" customer consignment* 'n this case, 5ccounting document is required to be generated only for most of the condition type, as it is being invoiced to end customer. Consignment returns" proceed as follows" Consignment returns enable your customer to return goods to the consignment stock that has already been issued from it. Create a sales order using sales order type C8. &nter the required data on the customer and the consignment goods. &nter all other relevant data and save the order. Create a returns delivery for the sales order )the system automatically chooses delivery type ,8*. The goods issue posting cancels the goods issue posting which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried out. Create a credit memo for the consignment return you created in #tep .. Order type" $8 )document category 9" returns* +elivery type" ,8 Credit for 8eturns Order type" 8& )delivery or order related billing* 'tem category" $8- )relevant for pricing and deliver related billing, special stock indicator 7 #chedule line category" +: )relevant for deliveries, no availability check, /0; 'n this case, 5ccounting document is required to be generated only for most of the condition type, as it is being returned by the customer < invoicing already done to customer.. Consignment Pick !p" The company uses consignment pick up to take back consignment goods that are faulty or e(cess materials that the customer does not need. This process is not relevant for billing since the goods remain the property of the company. 't may be beneficial to have a mandatory reference such as the consignment fill up. 'n addition to it copy control rules can be used to further control it. 'n the copy control rules indicate the document flow. 5s the stock is coming back into the 5A

warehouse or plant, you can specify a returns shipping point to be automatically determined. -o invoice is necessary, as the goods are not changing ownership. Create a sales order using order type $5. &nter the required data for the customer, the consignment goods and the plant to which the goods are to be returned. &nter all other relevant data and save the order. Create a returns delivery for the sales order )the system automatically chooses delivery type ,8*. The transaction is completed by the goods issue posting which initiates a transfer posting from the customer=s special stock to your plant stock. Order type" $5 )document category C" sales order* +elivery type" ,8 -o invoice 'tem category" $5#chedule line category" F. )relevant for deliveries, availability check against the stock on the customer=s consignment, /06 )Consignment pickup* 'n this case, 5ccounting document is required to be generated only for ta(es, as the stock is still the ownership of the company. 'n the pricing procedure all condition type e(cept for Ta(es should be statistical, as the stock is being returned from consignment site to plant. #tock checking"2%34 or 22%&


Order type !urchasing"

Identifier allowing differentiation between the different kinds of re#uisition and purchase order in the #$% system.

Item category in purchasing document

he item category controls whether the following entries and procedures are necessary or permitted for the item&

material number additional account assignment inventory management in the #$% #ystem goods receipt invoice receipt

$%ample !urchase re#uisition with delivery scheduling

Indicates whether the system redetermines delivery scheduling for the purchase re#uisition.

'oods generated by a purchase requisition may be shipped directly from your vendor to your customer. (owever, if you want the goods to come to you first, the system can automatically redetermine the delivery scheduling to allow for the additional time required for you to forward the goods on to the customer