SAP SD My notes

Session: Credit Management:

Typical functionality of credit management is to check the credit line of a customer
Once the credit line is exceeded (the dues are not paid), the customer is blocked for
further transactions/processing.
a) Credit control area (CCA): Org. element which handles the credit limits of a customer
Path SPRO IMG Enterprise struc. Definition Financial accounting Define
control area.

Important fields
(i) Update: Valid values 000012, 000015, 000018.
000012 Open sales orders, Open delivery & open billing doc values.
Open sales orders: Created a sales order yet to create a delivery for that sales order.
Open delivery: Created a delivery document & it is not billed yet
Open billing: Created a billing doc & it is yet to be cleared(payments from the customer)
.
000015 Considers only open delivery & open billing doc values
000018 Considers only open delivery value for sales order & open billing doc values.

(ii) Risk category: Type of risk Financial condition of a customer
Standard SAP contains valid values 001 Low risk, 002 High risk, 003 Medium risk
Imp: Risk categories are assigned to the individual customers in the transaction code,
FD32
(iii) Credit limit : The total value mentioned here is applicable to individual customer who falls
under the credit control area
Imp: Increase or decrease the credit limits of specific customers can be done in the
transaction code, FD32
High risk customer Low credit limits
Low risk customer High credit limits
Imp FAQ: What is the difference between the credit limits you mention in FD32 and the credit
limit you mention in credit control area definition??
Answer: Credit limits that are mentioned in the credit control area is applicable to all the
customers for whom the credit limits are not maintained in FD32.

b) Assignment of CCA: Once the credit control area(CCA) is created/defined the next steps
would be
o Assign company code to the CCA
o Assign the sales area to the CCA
o After the assignment the credit control area is to be changed in the customer
master Sales area date Billing tab as shown below










c) Risk categories definition & assignment
Path SPRO IMG Financial accounting Accounts Receivable & Accounts payable
Credit management Credit Control accounts Define risk categories

d) Credit groups definition: It defines at what level (Sales order, Delivery, Goods issue) you
are blocking a customer once he reaches the credit limit.
Path SPRO IMG Sales and distribution Basic function Credit
Management/Risk management Credit management Define credit groups new
entries


e) Assignment of Sales documents and delivery documents to CCA:
Path SPRO IMG Sales and distribution Basic function Credit
Management/Risk management Credit management Assign Sales documents and
delivery documents

f) Define automatic credit control:
Path SPRO IMG Sales and distribution Basic function Credit
Management/Risk management Credit management Define automatic credit
control
Credit control area + Risk category + Credit group = Credit control check

Important fields
(i) Derivation in % - It signifies the deviation upon the credit limit value mentioned in
the credit control area definition
Ex 0% is no deviation is allowed and it should strictly abide by the credit limit
mentioned.
(ii) Number of days: The credit limit is unchecked for the number of days mentioned
here. Generally used the sales during the festive season and year end.
(iii) Item check For each and every line item entered , the credit line amount is
checked by adding the line item amount to the update group amount and if it
exceeds the credit line amount then the system will stop further processing
(iv) Credit limit seasonal factor The credit limit can be increased or decreased during a
time period mentioned here.
(v) Static credit limit check For the credit limit evaluation the system would consider
all the open orders which are due for delivery irrespective of the horizon period.
(vi) Dynamic credit limit check - For the credit limit evaluation the system would not
consider the open orders whose future delivery date falls beyond the horizon
period. For ex If we mention 1 month horizon period , then the system would
ignore all the open orders amount whose delivery date falls beyond the horizon
period 1 month. This is the main difference between static and dynamic credit
limit check.
(vii) Max doc. value We can define the limit of a single order value i.e the maximum
order amount allowed in a sales document.
(viii) Critical fields If the critical fields such as payment terms , inco terms, prices are
changed then the documents can be blocked using this field.
(ix) Max. open item% - Maximum open items % based on the days oldest item field.
Irrespective of whether the credit limit is reached or not , an order can be
blocked based on the maximum open items%(i.e no of items for which the
payment is not done).



g) Maintaining the credit check of a specific customer using FD32:

Specify the customer no and the credit control area which is already created
Provide the credit limit amount and the risk category group and save



Session - Shipping:
Shipping point definition
Path SPRO Enterprise structure Definition Logistics execution
Define,copy,delete, check shipping point.
Key points in define shipping point:
o Country and Departure zone are the two key fields in the route determination.
o Factory calendar would determine the holidays
o Determine load. Time and Determine pick/pack time These two fields are key in
determining the Loading date and Goods issue date populated in the shipping tab of
item schedule lines

Shipping point Assignment
Path SPRO Enterprise structure Assignment Logistics execution Assign
shipping point to plant.
Note: Single plant can have multiple shipping points and one shipping point can be
assigned to more than one plant
Shipping point Determination
Three important key fields which determines shipping point
o Shipping condition from Customer master and Material master
o Loading group from Material master
o Delivering plant as per the sales order
Shipping condition + Loading group + delivering plant = Shipping point
Path SPRO logistics execution Shipping Basic shipping functions Shipping
point and good receiving points determination Assign shipping points

Route Determination
Path SPRO logistics execution Shipping Basic shipping functions Route Route
determination Maintain route determination.

V.imp - Key fields in this route determination
1. Departure country and zone ( Shipping point)
2. Destination country and Transportation Zone (Customer master General data
Address tab)
Click on Route determination without weight group (Order)



3. Shipping conditions from Customer master(SC)
4. Transportation group from Material master(TGroup)


Delivery

Path Create sales order Go to VA02 Sales document Deliver
Or Use TCODE VL01N
Error message: No schedule lines due for delivery up to the selected date
Resolution: Goback to delivery order screen and change the selection date to future
delivery date as mentioned in the sales order.

Steps in creating a delivery
o Enter storage location and save the document
o Open the delivery document in change mode (VL02N) and enter the picked quantity if
no ware house present in the storage location. Save the document and this completes
the delivery document creation
o If there is any warehouse no assigned to the storage location then we need to create a
transfer order (LT03) to the transfer the goods. Or in the overview screen of the delivery
document, click on the subsequent functions in the standard menu bar to create the
transfer order. After creating the transfer order, go to the change view of delivery doc
and enter the picked quantity to complete the delivery document creation.
o PGI (Post goods Issue): Click on the Post goods issue button to post the goods issued as
part of the delivery document which is created.
V.imp.. Effects of Post Goods Issue: -
1. The warehouse stock of the material will be reduced by the delivery quantity.(SD-MM
integration point)

2. The value changes are posted to the balance sheet account in the inventory
Accounting. (The value of finished goods will be reduced): SD-FI integration point.

3. The Billing due list (VF04) will be updated automatically. The delivery document after
the PGI it will get updated here in the billing due list.

4. P G I is automatically updated in the Document flow.

5. The Accounting Effect: COGS account (Cost of goods) will be debited and inventory
account will be credited.
In the document flow, select the GD goods issue document and click on the display
document or use TCODE MB03. Click on the accounting documents button and select
accounting in the drop down. We can see here that the COGS account is debited and
inventory account is credited.


Collective processing of Sales Orders:
To combine the multiple orders for customer we have to check the field Order
Combination either in the corresponding Customer Master or in the Sales Order
In order to combine the orders, the following data must be same for all those
orders.
1. Ship to Party, 2. Shipping Point, 3. Delivery Date.
Logistics Sales & Distribution Shipping & Transportation Outbound
delivery Create Collective processing of documents due for delivery
VL10A Sales orders
{VL10A Gives the list of sales orders that are due for delivery}
On the Fast Display screen specify the shipping point, delivery creation date,
ship to party & select Execute icon.

The system gives the list of all orders, which have above three fields in common
(that are due for delivery)

Select the required orders to be combining & select the button Create delivery in
background {on Top}
Select the button Log for Delivery Creation {on Top} Shift + F4
The system generates a group number, which contains the delivery document
created.

To see the delivery document created select the group number & select the
button Documents. {On Top}



For the delivery doc created complete the Picking & Post goods issue process.
Define Delivery Document types
In the delivery process the delivery document type controls how the delivery is to
function. The structure of the delivery document is very similar to a sales
document type in that a delivery document has a header and item structure.
Path SPRO Logistics Execution Shipping Deliveries Define Delivery
Types(OVLK)
Standard delivery document types
Ex: -
LF Delivery With reference to Sales order
LO Delivery without order reference
LR Returns Delivery
BV Cash sale Deliver

Key fields in Delivery document type
o Document Category: J is the document category for delivery.
o Number Range Int/Ext Assignment: Specify the No range for the Dly documents
Creating Number ranges for deliveries: - [VN01]
SPRO Logistics Execution Shipping Deliveries Define Number Ranges
for deliveries
o Item Increment: Specifies how the items are incremented in the delivery
document processing.
o Order Required: - Specifies whether a reference document is required to create
the delivery document.
o Default order quantity: DL Order type Sched Same order quantity mentioned in
the sales order will be copied into delivery document.
o Storage location rule:
Specifies the rule with the help of which, how the system automatically proposes a
storage location for the items in the delivery document.
MALA Shipping point / plant / Storage condition
RETA Plant/ Situation (SITUA) /storage Condition
MARE MALA then RETA (back up procedure)
o Delivery Split WH Number: - If we check this field, the delivery can be split
based on the warehouse Number.
o Automatic Packing: - If we check this field the automatic packing proposal is
retrieved, when a delivery is created.
o Screen Sequence Group: - The screen sequence group for delivery is LF
o Display Range: - Specifies whether all items should be displayed OR only sub
items will be displayed.





Assign delivery doc. type to the desired sales doc. type
In the define sales document type screen , mention the appropriate delivery type which
you want the system to take whenever you create a sales order with this document
type.
Go to transaction Maintain sales order type (VOV8)

Delivery Item category determination
A delivery item category is similar to the sales document item category, this controls how
the item is to behave in the delivery document.
To define delivery item categories, use the following menu path.
SPRO Logistics Execution Shipping Deliveries Define Item Categories for
deliveries (0VLP)
Imp
o If we create delivery with reference to the item categories, then the item category in the
ref document will be copied to the delivery document.
o If we create the Delivery without reference, the Item Category Is DLN



Key fields in Delivery doc. item category type
o Document Category: J is the document category for delivery.
o Material Number 0 Allowed: Specifies whether we can enter an item in the
document without specifying the material. This is normally used for including the text
items in the delivery such as User manuals, Brochure etc.
o Check Quantity 0: - Specifies how the system reacts, if the delivery quantity is
0 during delivery document processing.
o Check Minimum Quantity: - Specifies whether the system checks the minimum
delivery quantity, specified in the material master & if so, determines how the
system reacts if the min. quantity is not met.
o Check over Delivery: - Specifies how the system reacts, if the delivery quantity
exceeds the original order quantity .
No dialog/warning message : Used for delivery related billing.
Error message : Used for Order related billing.
o Availability Check Off: - Specifies whether the system carries out an availability
check for the items in the delivery document
o Rounding: - Specifies whether rounding is permitted or not.
o Relevant for Picking: - Specifies whether the materials are relevant for picking
process or not
Imp note: Certain items such as Text items or Service items are not relevant for
picking.
o Storage Location Required: - If we check this field, during the delivery
document processing, we must enter the storage location for the items.
o Determines Storage Location: - If we check this field, the system automatically
determines a storage location for the delivery items.
o Dont check Storage Location: - Indicates whether the system should run a
check for the storage location that was determined.
o Automatic Batch Determination: - This is regarding the batches.

Item Category Determination in Deliveries [0184]
If we create the delivery with reference the sales document, the system is going to copy the
item category from the reference document to delivery document with the help of copying
controls. So the item category determination is not required here.
If we create the delivery without reference we need to assign the item categories.
SPRO Logistics Execution Shipping Deliveries Define Item Category Determination
in Deliveries(0184).
We need to assign the item category in the combination of
Delivery Document Type
Item category Group
Usage
Higher lever item category


Creating a delivery without sales order reference:

Create Delivery document type without order reference( Standard delivery type without
order reference - LO
Go to VL01N and click on without order reference
Or
Directly go to VL01NO



Enter all the details inside and save the delivery. Picking and PGI and create the billing
document.


Standard item category for delivery without order reference is DLN



Session: Billing
The billing process could be order- or delivery-related, and may include billing of standard
deliveries as well as the creation of debit and credit memos.
V.imp : Delivery or order related billing is controlled by the billing relevance field in the item
category type. Whenever we create the billing document in VF01 we should fill in the
appropriate entry Sales order or Delivery doc. Number in the document reference field.
For ex: For TAN Billing relevance is A Delivery related billing
For BVN(Used for Cash sales) Billing relevance is B Order related billing.

Create Billing Document [VF01]
Logistics Sales & Distribution Billing Billing document VF01 - create
In the document field as discussed above specify the reference document number, on the basis
of which the billing document needs to be created.
Just like for delivery document, there is no need to enter the billing doc. type because we had
already assigned the delivery document type and billing document type inside the sales order
type definition.
So in VF01, just key in the reference document and click on execute icon.




Save the billing document which would automatically create an accounting document based on
the configuration settings or else we need to manually release the billing document to create
an accounting document. Below is the typical document flow of a standard OTC cycle.


Imp note: The reference doc to create the billing document is controlled by item
Category. The field is Billing Relevance. Whatever we mention here, system
will take that doc as reference to create the billing document.
Imp note: When we save the invoice the companys revenue account will be
Credited & the customer account is debited.

Imp note: If the accounting document is not generated, try the following setting.
We can manually release the doc to Accounting in the following way
Go to VF02 go to billing document in the main menu and select Release to
Accounts


Invoice Cancellation: - VF11
Logistics Sales & Distribution Billing Billing document VF11 Cancel

In the document field specify the billing document no. To be cancelled & select
execute. Go to invoice cancellation details & save it.

Imp note: When we save the invoice cancellation, the values that are already
posted to FI are reversed.



V.Imp - OTC cycle cancellation procedure
1. First cancel the Invoice in VF11, then the status of the delivery document will be
changed back to being processed
2. Reverse PGI VL09 to reverse the post goods issue.
3. Go to VL02N delete the deliver
4. Go to VA02 delete the sales order

Accounting document
Click on the accounting icon to view all the accounting documents which are generated for this
billing doc.
The system generates the following documents:
1) Accounting document
2) Profitability analysis
3) Special purpose ledger
4) Controlling document
Out of all this list, accounting document is important for SD consultant. All other documents are
handled by the FI consultant.


Click on the account documents to display the document details.


For the accounting document to be generated, we have to customize the revenue account
determination procedure.
The amounts are posted to the respective G/L accounts based on the configuration settings in
revenue account determination (VKOA).



Click on the payer record to view the details as shown.


Fields in the Accounting Document:
Item: - Serial no 1, 2, 3, and 4..
Posting Key: - 40 for Debit; 50 for Credit; 01 for Customer
Account: - Specifies the G\L Account to which the amounts got posted
Account short Text: - Description of the Account.
Assignment: - G\L account assignment.
Tax Code: - Specifies the Tax code of the country
Amount: - Specifies the amount posted to the GL accounts. We can see the reconciliation
account in the details of payer record.
NOTE: - The reconciliation account cannot be seen in the accounting document.
Define Billing Types(VOFA)
Path - SPRO Sales & Distribution Billing Billing Documents Define Billing types
Define billing types -----------> Below are the standard billing types
F1, F2 - Invoice ;
BV - Cash sale invoice
F5 - Proforma invoice for order
F8 - Proforma invoice for delivery
G2 - Credit Memo
L2 - Debit memo
S1 - invoice cancellation ; S2 - Credit memo cancellation


Note: There are no corresponding item categories types & schedule lines for billing
document types like we have for sales order type.

Key fields in Billing document type

o Number range internal Assignment: - Specify the internal number range, for the
Billing Document. No External number range here.
There is no external number range for billing documents because of the legality
associated with them and to maintain the consistency when submitted to government
authorities.
Note: We can delete Sales order & Delivery document, but we cannot delete an Invoice.
We can only cancel the invoice.
o Item No. Increment: - Specifies the number, by which the item will be incremented in
the billing document.
o Sales document category: - Specifies the document category for the billing.
M Invoice, O Credit Memo & P Debit Memo
o Transaction Group: - The transaction group is: 7 for billing document.
o Posting Block: - If we check this field, the automatic transfer of billing document
to accounting document will be blocked. We have to manually release the accounting
document in VF02 using the release to accounting button.
o Statistics: - Indicates whether the system stores the information from the billing
document for the purpose of statistical analysis.
o Negative Posting: - Specifies whether the negative posting is allowed for billing
document, i.e. a corresponding set posting on the debit side, reduces the credit
side of the accounting & a credit posting reduces the debit side of the accounting.
o Relevant for rebate: - Specifies whether the billing document is relevant for
rebate processing. {We have seen this field in 2 places 1.Sales Organization, 2.Cust M.
Data}. All the three places should be checked to have the relevancy for rebate.
o Cancellation Billing Type: - Specifies the cancellation doc type for the billing
document. (S1)
o Accounting Determination Procedure: - Specifies the revenue account
determination procedure.
o Output Determination Procedure: Specifies the output determination
procedure: V10000, Application as: V3 & Output Type as: RD00
o Partners: Specifies the Header partner as: FK & the Item partner as: FP. This
will help us to copy the partner functions from Sales order/Delivery to Billing Doc.
Note: - We do not have billing Item Categories in SAP. In Sales Item Category we control
the billing items as well.



Invoice Print: - To take a printout of the invoice, go to VF02; from the initial
screen select the button Billing Document Issue output Printer OR Screen.


For print preview -
Then select the message type RD00 and click on the print preview to view the output.


Language Change: - To change the language for print out go to VF02, from the overview screen
select Go to Header Output
Select the button change Output & Change the language.

Credit Memo

If the company has to pay something back to the customer, we need to create
the credit memo. The credit memo can be created with reference to the credit
memo request (G2)


1. Create Credit Memo Request: - VA01
VA01 Create, Order type is CR
The standard Item Category is G2N , in which we dont check the field Schedule lines allowed
Release the billing block, which is default for credit memo order type. Specify the order reason
& save it
Imp note: No Credit management relevant fields checked in this order type
No Shipping/delivery relevant fields checked in this order type
Always order related billing type G2 (Std credit memo billing type/Invoice)




2. Creating Credit Memo: - With reference to credit memo request, we can create
the credit memo. (VF01- Create)
Doc type is G2 , Item Category is G2N
In the Doc. field specify the Credit memo request Number & Execute.

In real time there would be a billing block for all the credit memo requests, so only authorized
business head can remove the block. Go to VA02 remove the billing block
Again go to VF01 and save the billing document after removing the block.



To check the error log in any transaction -> Go to Edit(Menu bar) Log


Imp note: When we save the credit memo companys revenue account is debited
& the customers account is credited.
The system generates accounting doc, which is posted to FI

Debit Memo

If the customer has to pay something back to the company, we need to create
the debit memo. We can create debit memo with reference to the debit memo
request (L2)


1. Creating Debit Memo request:
VA01 Create, Order type is: DR
The standard Item Category is L2N , in which we dont check the field Schedule
lines allowed
Remove the billing block, if any. Specify the order reason & save it
2. Creating Debit Memo: - With reference to debit memo request, we can create
the debit memo.
VF01- Create
Doc type is L2 , Item Category is L2N
In the Doc. field specify the Debit memo request Number & Execute.



NOTE: - When we save the debit memo companys revenue account is credited
& the customers account is debited.
The system generates accounting doc, which is posted to FI.