TSCM 60

Unit 01: Navigation

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Unit 02: Enterprise Structures in Sales and Distrubution

What is Company Code ?

Company code is one of the most important enterprise entities for financials.
Company code is an independent accounting entity for which a complete self-
contained set of accounts can be drawn up. It represents a legal entity and a
balanced legal set of books.

What is Sales Organization?

� The highest-level of organizational unit in SD is Sales Organization.
� Responsible for Distributing goods and services, Negotiation sales conditions,
Product liability and other customer rights of recourse.
� Sales organization is also used to take for example a regional, national or
international.
� A sales organization assigned to a company code.

What is Distribution Channel?

� Distribution Channel represents strategies to distribute goods and services to

customer.
� DC is assigned to a sales organization. The assignment is not unique.
� You can share Customer, Material and Condition master data by maintaining a
reference/common DC.

What is Division?

� A Division is used to group material and services. A material can have only one
Division.
� We can make Customer- specific agreements for each Division, for example
regarding partial deliveries or pricing within Division. (In CMIR)
� You can share Customer and Condition master data by maintaining a
reference/common Division.
� A Division is assigned to a sales organization. The assignment is not unique.

What is Sales area?

� A Sales area is a combination of a Sales organization, DC and Division. It

defines the Distribution channel of a Sales organization uses to sell products of
certain Division
� By defining and assigning Sales Organization, DC and division a Sales area not
automatically formed, you have to set up a sales area.
� A sales area can belong to only one company code. Assigning the sales
organization to company code creates this relationship.
� Each sales and distribution document is assigned to exactly one sales area. This
assignment cannot be changed.
� Sales area assigned to Credit Control Area.
� Sales office assigned to Sales Area
� Sales group assigned to Sales office.
� Employee of a sales office can be assigned to sales group.

What is Plant?
The Plant is a location where material is kept. Represent a production facilities
or Material requirement planning in the System. In sales and Distribution, A Plant
represents the location from which Materials and Services are distributed and
corresponds to a distribution center. The relevant material stocks kept here.
� A Plant assigned to a company code.
� A Delivering plant assigned to Combination of Sales organization and
Distribution channel

What is Shipping Point?

� Shipping Point highest organizational unit in Shipping. A shipping point is

under client level.
� A shipping point assigned to a Plant. A Shipping point can be assigned to
multiple plants. Various Shipping point can be assigned to same plant.

What is Outbound delivery?

Outbound delivery is the process of picking goods, reducing the storage quantity,
and shipping the goods. The outbound delivery process begins with goods picking
and ends when the goods are delivered to the recipient. In sales and distribution
an outbound delivery document is created when the shipment of goods happen based
on a sales order.

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Unit 03: Overview of Sales Process

What is Quotation?

In response to an inquiry from a Customer, the business sends a quotation which

offers the customer the required materials.

A quotation presents the customer with a legally binding offer for delivering a
product or providing a service within certain fixed conditions. This offer is
legally binding for the company within a specified time period.

What is procurement?

The term procurement means getting material for the required purpose (for example
delivery/in-house production and so on). Procurement can happen through in-house
resources or through external suppliers.

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Unit 04: Master Data in Sales and Distrubution

How many types of Master available in SD?

Customer master data, Customer material information record, material master data,
Condition master, Common master, Additional master data

What are the possible information which comes from the Customer Master data
proposal in sales document?
* Delivery date and tax information- From Ship to Party master record
* Payment terms, Credit limit check- From Payer master record
* Address to which invoiced to sent- From Bill to Party master record
* Shipping conditions, Pricing, incoterms-From Sold to Party

Customer master Data?

The Customer Master data divided in following categories.

1 General Data: store centrally-Client specific, valid for all organizational
Units.
2 Sales Area data:
3 Company Code data
� It includes all necessary data for processing Order, Deliveries, invoices and
Cust. Payment.

What is the use of Customer 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 Ordering tab page
� It keeps information about Delivering plant, Customer material no., and Delivery
agreement-Complete/Partial

What are the effects of changes in the customer master?

When changes are made to a customer master record after having used it to create
documents, the changes do not affect the documents already created. How ever the
address in the customer master record is an exception.

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Unit 05: Sales & Distrubution Process-Data Determination & Collective Processing

Delivering Plant Determination

Delivering Plant Determination in sales Document according to following step

1. CMIR
2. Customer Master-Ship to Party (Sales area- shipping tab page)
3. Material Master- Sales Org. 1 View.
Note: CMIR has precedence over customer and material master.

Shipping point determination

Shipping point determination based on these combinations.

1 Delivering Plant
2 Shipping condition- Sales document type OR Customer master data-Sold to Party
(Shipping Tab Page)
3 Loading group-Material master data (Sales: Gen/plant)
Note: Shipping condition from sales document type has precedence over that from
customer master.

What are the sources of data in a sales document?

1 Master data
2 Customizing
3 Other SD document/Existing document with data
4 Hard coded controls
In sales order with fast change option what are the fields which you can change?

Reason for rejection, Delivery block, Billing block, delivery date, delivery
priority and Plant.

With Mass change option in a sales document list you can change?

Plant, Materials, currency and Pricing.

Where you assign Billing block in Sales and Distribution?

A Billing Block can assigned at sales document header level and item level

Where you assign delivery block in Sales and Distribution?

A delivery block can assigned at sales document header and schedule line level

What are Different Times involved in delivery scheduling?

1 Pick/Pack Time
2 Loading Time
3 Transportation Lead Time
4 Transit Time

What is Backward scheduling?

Backward scheduling-The customer request delivery date is used to calculate the

material availability date and transportation lead-time. The 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.

What is Forward scheduling?

Forward scheduling- If both of dates not come after order date, customer request
delivery date cannot be confirmed. Now system confirm the quantity on the basis of
New Material availability date, the earliest date at which the material is
available in the warehouse.
Two schedule line are generated for the sale line item-
1 The date of the first schedule line corresponds to the customer�s required
delivery date and has no confirmed quantity.
2 The date of schedule line shows the confirmed delivery date and the confirmed
quantity.

What is delivery scheduling?

The term delivery scheduling means creating a schedule for delivering an order
according to the customer requested delivery date. One of the main functions of
delivery scheduling is to determine the material availability date which can be
done either by backward scheduling or by forward scheduling.

How to proceed when we get the error �No schedule lines due for delivery up to the
scheduled date� while creating a delivery document?

This error occurs mainly when we enter the selection date as a date before the
schedule line date. We need to enter a date which is on or after the schedule line
date in the selection date field.
What is collective processing of sales documents?

Collective Processing is a procedure that facilitates the processing of

transactions. Selected transactions are displayed in a list, together with brief
information on the individual transaction. The necessary processing functions are
also made available.

Say for example, you want to carry out the outbound delivery process for a
particular shipping point for the orders created within a particular period. You
can even be more specific by entering the ship-to-party. Then only the orders that
are due for delivery for a particular customer through a particular shipping point
will be displayed for collective delivery processing.

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Unit 06: Availability Check

What do know about Backorder processing and what are the types of Backorder
Processing?

An order item is backdated if

1 The quantity of an order item is not totally confirmed.
2 The request delivery date for an order item cannot be kept

What are the type of backorder processing?

There are two type of backorder processing

1 Manually- From list sales order processes them manually with reference to
confirmation (Short fall can be cleared).
2 Via Rescheduling- We can use the delivery priority (proposed from the customer
master) and make new order and confirmation date by scheduling

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Unit 07: Make-To-Order

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Unit 08: Complaints Processing

What are the reference which are required for creation of Return Order?

You can create The Returns or a Credit memo request or a Debit memo request with
reference to a sales order or a Billing document

What is the document type in SD which always created with the reference of
preceding document?

An Invoice correction request is always created with reference to the incorrect

billing document. A credit memo item and a Debit memo item are created in the
Invoice correction request for every item in the incorrect billing Document.
Change can only be carried out on the debit memo items (debit memo is in Change
mode, you can put Correct quantity here). It always delete in pair.

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Unit 09: Analyses for Sales & Distrubution

What are the examples of types of standard reports?

List of orders, quotations, inquiries, outbound deliveries, billing documents,

list of blocked documents.

What is the purpose of a information system?

An information system allows to compress data effectively. This results in

specific analysis and reports for the multiple tasks of the various management
levels. Using the information reports and analysis, you can manage results
effectively and identify problems quickly. On the basis of these reports and
analyses, further planning can be carried out and new strategies may be developed.

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Unit 10: Enterprise Structures in Sales & Distrubution

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Unit 11: Sales Order Processing

What is transfer of requirements?

Transfer of requirements means the communication between sales and distribution

and the procurement.

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Unit 12: Controlling Sales Documents

How you make Item Category Determination

Sales Document type + Item category group + Usage + Item category of upper level
item

How you make Schedule line cat. Determination ?

Schedule line cat. Determination-sales doc. item categories + MRP (MRP 1- Mat.
master)

What is Availability check and what are the uses of Availability check in SD ?

An Availability check is carried out during sales order processing.

Availability is checked on material availability date. The material availability
date is determined from delivery scheduling, on this date enough material has to
be available in time for delivery to the customer for their requested date.
What is the document flow in the system?

The documents within sales and distribution process are linked to each other via
the document flow. This enables to access the history and current status of the
sales and distribution process at any time. The document flow is updated at the
document header and line item level.

What are the sources of data in sales and distribution?

The sources of data in sales and distribution are Customer master data, material
master data, Customer-material master data, Condition master data, Common master
data and additional master data like out put.

What is the Function of item category and item category group?

Item Category determines the processing of any Item/material that we enter in a

sales order and in this way it also effects the processing of any sales doc in
which it is used. Item Category Group is one of the components which along with
the Sales Doc Type, The Item Usage and Higher Level Item Category decide about the
Item Category in a sales doc.

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Unit 13: Data Flow

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Unit 14: Special Business Transactions

What is Consignment processing?

In consignment processing, goods are delivered to the customer but remain the
property of company in special consignment stock, however they actually used. An
invoice is not created until the customer-withdrawn goods from consignment stock.
Up Till that point, the customer has the right to return consignment stock.

Name a sales document type that is used for sales from the plant?

Rush order and cash sales.

Page Number � 517, second paragraph from top. Typographical Error:

Existing:

In the Rush order sales document type, the immediate delivery switch and delivery
type DF are configured.

Correct:
In the Rush order sales document type, the immediate delivery switch and delivery
type LF are configured

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15: Incompleteness

What is Incompletion Log?

The incompletion log is a list of containing all information that has been defined
as relevant for the sales document, that has not been processed during sales
document processing.An incompletion log is a list of all data essential to the
company in a sales document that has not yet been entered in the system.

Where the Incompleteness Log Function available in SD?

1 Sales- Header
2 Sales- Item
3 Sales- Schedule Line
4 Partner
5 Sales activities
6 Delivery header
7 Delivery Item

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Unit 16: Business Partner

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Unit 17: Outline agreements

What are the two types of outline agreements?

The two types of outline agreements are 1. Scheduling agreements and 2. Contracts
Value and quantity contracts).

What is a scheduling agreement?

A scheduling agreement is an outline agreement between the company and the sold-
to-party that is valid for certain period of time. The scheduling agreement
contains fixed delivery dates and quantities.

What is a contract?

A contract is an outline agreement between the company and the customer that is
valid for a period of time. The contract does not contain any schedule lines.
Delivery quantities or delivery dates.
What is Scheduling agreement?

The Scheduling agreement contains fixed delivery dates and quantity and is valid
for a certain period of time.

What do you know about Contracts?

The contract does not contain any schedule line, delivery quantities or delivery
date. It is valid for a certain period of time.

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Unit 18: Material Determination,Listing and Exclusion

What is material listing?

If the company wants to make sure that a customer receives only specific material,
then those materials are entered as material listing. Material listing is
controlled by condition technique.

What is material exclusion?

If the company wants to make sure that a customer does not receives certain
material, then those materials are entered as material exclusion. Material
exclusion is controlled by condition technique.

What is Material Determination?

Material determination provides you with a tool for automatic exchange of material
in sales document. Material determination is carried out by condition technique.
You do not need a material master record for the material number that you are
replacing. You can assign a substitution reason to every master record in material
determination that defines how the material should be determined.

Note: You can assign a material determination procedure to each sales document
type.

What do you mean by Listing?

Make sure that your customer receives only specific materials. You enter these
materials as a material listing. The material listing is controlled by condition
technique.

What do you mean by Exclusion?

Make sure that the customer does not receive certain materials. You enter these
materials as a material exclusion. The material exclusion also controlled by
condition technique.

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Unit 19: Free goods

What do you mean by Free Goods?

� Condition technique is used for free good determination.
� For free goods determination system uses-
1 Sales area
2 Document determination procedure (Sales document type)
3 Customer determination procedure (Customer master data)
� Free goods can be part of the order quantity not included in the invoice. This
is called an inclusive bonus quantity. The order goods and the free goods both
involve the same material. The quantity units of the free goods and ordered goods
must be same.
� In exclusive bonus quantities, the extra goods are delivered free of charge and
not typically his included in the invoice. This can either be an additional
quantity of the goods ordered or it can be another article. The exclusive free
goods appear in the sales document as an individual, free- of- charge item.

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Unit 20: Sales Workshop

What are the setting to be done for BOM to explode in a sales order?

In the item category for the line item of the sales order, the field structure
scope should be selected and in the material master the item category group should
be maintained as ERLA.

We want to explode Bill of Material automatically at time of Order entry and

explode an Equipment BOM in the sales order. What are the setting required?

Use an item category that is configured for bills of material for having a sales
BOM to explode automatically. Standard SAP item categories are: TAQ - Pricing and
inventory control take place at the BOM header level. TAP - Pricing and inventory
control take place at the BOM item level. These can be automatically derived using
the item category groups ERLA and LUMF, respectively.
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Unit 21: Overview of the Delivery Process

How many levels are there for Delivery Document?

A delivery Document has two level- Header and Item. There is no schedule line. The
reason is each schedule line in the sales order can become an item in delivery
document.

What is shipping processing?

Shipping processing begins when the delivery document is created. It supports

creating outbound deliveries, picking( by creating transfer orders), packing and
post goods issue.

What is picking?

Picking involves creating the correct quantity and quality of goods for shipping
on schedule to a customer. Picking can tales place automatically when the delivery
is created or at specified times or can be triggered manually by an employee in
the shipping department. In picking a transfer order will be created for an
outbound delivery.

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Unit 22: Basic Customizing Settings for the Delivery Process

How the system determines Delivery Item Category?

Delivery item category determination - delivery document type + item category

group + usages.

How the system determines Route?

Route determination is carried out in sales order item and depends on:
1 The departure zone- shipping point (customizing)
2 Shipping condition-sales document type or sold to party
3 The transportation zone- ship to party (shipping tab)
4 The transportation group-material master (general/plant)

What are the different times involved in delivery scheduling?

1 Pick/Pack Time
2 Loading Time
3 Transportation Time
4 Transit Time

How the system determines the Picking location / storage location determination?

There are three rules for Picking Location i.e. MALA, RETA, MARE
� MALA: - determination based on the shipping point, the delivering plant, and the
storage location (Material master-plant data/storage 1)
� RETA: - Determination based on the delivering plant, situation, the storage
condition.
� MARE: - First MALA then RETA

What is Transfer order?

A transfer order is an instruction to move material from a source storage bin to a

destination storage bin within a warehouse complex.

What are the effect of PGI?

The effect of PGI are as follows;

1 Reduce warehouse stock
2 Post the value change to the stock accounts in inventory accounting
3 Enter status information in the outbound delivery.
4 Reduce delivery requirement.
5 Is store in document flow and update status of preceding document
6 Create work list for billing.

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23: Goods Issue Process

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Unit 24: Special Functions for Processing Deliveries

What master data is used to for proposing the partial delivery flag in the order
item?

The proposal for the Partial delivery for the order item comes from the customer
master

What is the transfer order?

The transfer order is an instruction to move material from a source storage bin to
a destination storage bin within a warehouse complex. It includes the information
about the material number, quantity to be removed and source and destination
storage bin.

What do you mean by Lean Warehouse Management?

Lean warehouse management is fixed bin warehouse management type. This WM does not
have inventory management at the level of storage bin. In fixed bin storage area,
a particular material is always in the same storage bin.

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Unit 25: Packing

What is handling unit(HU)?

A handling unit is physical combination of materials consisting of packaging

materials pallets, cartons etc) and goods to be transported, used�etc) and it is
uniquely identified by its HU number

What does Material Type VERP?

VERP is a packaging material type

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Unit 26: Goods Issue

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Unit 27: Final Exercise

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