SAP SD (Sales and Distribution) Training

Tutorials
SAP SD ( Sales and Distribution ) is one of the important module of SAP
systems and handles the processes of order to delivery activities. Sap SD
manages all activities of pre-sales, receiving & managing sale orders, and
schedules, delivering products to customers, billing to customers for products
sold, handling transportation and distribution of shipments to customers.
SAP SD module integrates with other modules such as Financial Accounting
and Controlling (FICO), Material Management (MM), Production Planning
(PP) and so on.
Organization Structure:1. Define Company
2. Define Company Code
3. Creating Sales Organization
4. Define Distribution Channels
5. Defining Divisions
6. Define business area
7. Creating a Sales Area in SAP SD
8. Define Shipping Point
9. Maintain Sales Office
10. Define Plant
11. Maintain Storage locations
12. Maintain Sales Group
13. Define Sales Districts
14. Define Regions

About Company in SAP:- Company is the organizational unit for which

individual financial statements can be drawn according to the relevant
commercial law. A company can comprise of one or more company codes. A
Company has local currencies in which its transactions are recorded. All

company codes within a company must use the same transaction Chart of
accounts and the same Fiscal Year.
Path to Define Company in SAP :SAP IMG Path: SPRO > Implementation Guide for R/3 Customizing
(IMG) > Enterprise Structure > Definition > Financial Accounting >
Define Company
Transaction code to Define Company in SAP :- OX15
Steps for creation of Company:

Step 1 :- Enter Transaction Code SPRO in the commend field and press enter
on the Keyboard

Step 2 :- Next Customizing execute project screen select SAP Reference

IMG

Step 3 :- After Selecting SAP Reference IMG, a new screen IMG Path will be
displayed. Select Define company execute icon for creating a company

Next Screen will be displayed after selecting the define company execute
icon

Step 4:- Now Select New entries icon and enter the company details

The following details are to be entered for creating a new company

1. Enter 6 character alphanumeric code key that represents the group of
company
2. Enter name of your company
3. In the Detailed information update the address Street name, PO Box#,
Postal code, City.
4. Enter Country Code of the company
5. Enter language key
6.

Enter local currency for the company (also known as Company code
currency)

7. Click on Save icon or CTRL+S after updating the required information

Thus new Company ADARSH is created in SAP.
Define Company Code
About Company Code :- Company Code in SAP is the smallest
organizational unit of Financial Accounting for which you draw individual
financial statements like Balance Sheet and Profit & Loss Account for purpose
of external reporting. The Creation of company code in sap is mandatory

PATH :- IMG Reference > Enterprise Structure > Definition > Financial
Accounting > Edit, Copy, Delete Company Code
Transaction code to Define company Code :- OX02
Steps to Define Company Code: -

Step 1 :- Enter Transaction Code SPRO in the commend field and press enter

Steps 2 :- In customizing
execute project screen select SAP Reference IMG

Step 3 :- In next screen

select Edit, Copy, Delete check Company Code

Step 4 :- The below screen displays after selecting Edit, Copy, Delete
Company Code ( Define Company Code )

we can create company code by selecting above two options. By selecting first
option copy, Delete, company code all the configuration and tables get
copied automatically along with assignments.
Here we are creating company code manually configure all the assignments
by selecting second option Edit Company Code Data . Double click on
Edit Company Code Data

Step 5 :- Click on New Entries

and update the following details

1. Update new Company code key AD06

2. Give the company name Adarsh Technologies for identifying the company
code key
3. In Additional Data update the details of City, Country, local Currency of
company, Language.
Click on Address and Update the following fields

enter Click on Save icon

After updating Address

Thus the company code AD06 is created in SAP

Creating sales organaisation::::::::::

Configuration of Sales Organization in SAP SD
IMG Menu Path :SPRO > Implementation Guide -> Enterprise Structure > Definition > Sales and
Distribution -> Define, copy, delete, check Sales organization > Define Sales
organization

T Code to Define Sales Organisation :- OVX5

Steps to Create New Sales Organization in SAP

Step 1 :Enter Transaction Code SPRO in the Command field and press Enter

Step 2 :In next screen click on SAP Reference IMG

Step 3 :In next screen follow the menu path for Define sales organisation

Step 4 :A window will pop up and Double click on Define sales Organization

Step 5 :In next screen click on New Entries

Step 6 :Update the sales organisation key and name of the sales organization

Step 7 :Press enter and click on save icon, another window will pop up for updating the
address. Update the sales organization address.

Step 8 :After updating all the required address information click on save icon

Thus Sales Organization is successfully configured in SAP SD

Steps to Create Distribution Channel

IMG Menu Path :SPRO > Customizing Implementation Guide > Enterprise Structure > Definition > Sales
and Distribution > Define, copy, delete, check Distribution channel
T Code for Define Distribution channel :- OVXI
Step 1 :Enter T Code SPRO in the Command field and press enter from keyboard

Step 2 :Click on SAP Reference IMG

Step 3 :Follow the IMG menu path as per below screen shot for define distribution channel

Step 4 :Click on Define, copy, delete, check Distribution channel, a pop up window will be
displayed and then select Distribution channel

Step 5 :In next screen list of distribution channel will be displayed, click on new entries to create
new distribution channel

Step 6 :Enter Distribution channel key in the Distr. Channel field and give the name of the
distribution channel

Step 7 :Click on save icon to save the configuration settings

Thus distribution channel is successfully created in SAP SD

Steps to Create Division in SAP:IMG Menu Path :SPRO > SAP Customizing Implementation Guide > Enterprise Structure > Definition >
Logistics-General > Define, copy,delete, check division
T Code to Define Division in SAP :- OVXB
Step 1 :- Enter Transaction Code SPRO in the command field and press enter from the
key board

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the IMG menu path to define new division in SAP and click on
execute Define copy, delete, check division

Step 4 :- In next screen a popup window will be displayed, click on Define Division

Step 5:- Click on New entries to create divisions

Step 5 :- Enter the division key in the division field and update division name

Step 6 :- Click on Save icon to save the inputs

Thus New Division is successfully configured in SAP

Define Business Area in SAP

Definition of Business area :- Business area is a separate area of operations or
responsibilities of organizational units of financial accounting that is used for internal
and external reporting . Different divisions of each business with in a legal entity are
created as Business areas for reporting of each operational areas. So Financial
statements can be created for each business area and this financial statements can be
used for internal reporting purpose.
Business areas are not assigned to any company codes.
Transaction Code for Creation of Business Area in SAP :- OX03

Steps for the Creation of New Business Areas in SAP :Step 1 :- Enter transaction code SPRO in the commend field

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the
Business areas

Step 4 :- After Selecting Define Business Area, Select new entries to configure new

Business areas
Step 5 :- Enter the 4 digit code in the business area field and enter the name of
business areas in the description field and save the settings.

Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICO

Define Business Area in SAP

Definition of Business area :- Business area is a separate area of operations or
responsibilities of organizational units of financial accounting that is used for internal
and external reporting . Different divisions of each business with in a legal entity are
created as Business areas for reporting of each operational areas. So Financial
statements can be created for each business area and this financial statements can be
used for internal reporting purpose.
Business areas are not assigned to any company codes.
Transaction Code for Creation of Business Area in SAP :- OX03

Steps for the Creation of New Business Areas in SAP :Step 1 :- Enter transaction code SPRO in the commend field

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the
Business areas

Step 4 :- After Selecting Define Business Area, Select new entries to configure new

Business areas
Step 5 :- Enter the 4 digit code in the business area field and enter the name of
business areas in the description field and save the settings.

Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICO

Steps to Create Sales Area in SAP :IMG Menu path :SPRO > SAP Customizing Implementation Guide > Enterprise Structure > Assignment
> Sales and Distribution > Set up Sales Area
Step 1 :Enter Transaction Code SPRO in the Command Field

Step 2 : Click on SAP Reference IMG

Step 3 :Follow the Menu Path and click on Set up Sales Area execute Icon

Step 4 :Click on New entries for Assignment between Sales Organisation, Distribution
Channel and Division

Step 5 :- Enter the following details and Enter

1. Update Sales Orgnisation key in the SOrg. field
2. Update the distribution channel key in the Dchl field and
3. Update division key in the DV field

Step 6 :- Click on Save Icon

About Shipping Point :- Shipping Point is an organizational element where the

shipping activities are executed. We can assign shipping point to more than one plant.
Step by Step defining shipping point in SAP :Transaction Code to create shipping point in SAP :- OVXD
IMG Menu Path :SAP Customizing Implementation Guide > Enterprise Structure > Definition > Logistic
Execution > Define, Copy, Delete, check Shipping Point

Step 1 :- Enter Transaction code SPRO in the command field and press enter from
key board

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the Menu path as per below screen shot and click on Define, Copy,
Delete, check Shipping Point

Step 4 :- Shipping point can be created by two methods either copying the exiting
shipping point for creating new one, here we are creating new shipping point. Double
click on define shipping point

Step 5 :- In next screen a list of existing shipping point will be displayed, click on New
entries for defining new shipping point

Step 6 :- Next update the required data for the defining shipping pointShipping Point :- Enter new shipping point key and update the description of shipping
point
Times :- Update the Factory calender and working times
Determine Time :- Update the determine Load time, determine pick and pack time and
rounding working days

After updating the required data press Enter from Key Board, a pop up window for
address will be opened

Step 7 :- After Updating the address for the shipping point, click on save icon

Thus Shipping Point is successfully configured in SAP .

How to Maintain Sales Office in SAP SD |

Sales office SAP
IMG Menu Path :SAP Implementation Guide (IMG) > Enterprise Structure > Definition > Sales and
Distribution > Maintain Sales Office
Step 1 :- Enter Transaction Code SPRO in the SAP Command field and press enter

Step 2 :- Click on SAP Reference IMG

Step 3 :-Follow the IMG menu path for maintain sales office in SAP

Step 4 :- Click on New entries to create new sales office

Step 5:- Enter Sales office Key and Update sales office description ,

After updating the data, press enter , a new window will pop up for address entry,

Update the address information and then save the entries

Thus sales office is successfully configured in SAP SD

How to create Plant in SAP MM | Define

Plant
Steps to Define Plant :IMG Menu Path :-

SPRO > SAP Customizing Implementation Guide (IMG) > Enterprise Structure >
Definition > Logistics General > Define copy, delete, check plant
Transaction Code to Define Plant :- OX10
Step 1 :- Enter Transaction Code SPRO in the command field and press enter

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the Menu Path as per below screen shot

Step 4 :- Click on Define Plant

Step 5 :- Click on New Entries

Step 6 :- Enter new plant code and update the name of the Plant and press enter

Step 7 :- Update the address of the plant and press enter

Step 8 :- After updating all mandatory fields click on save icon

Thus Plant was successfully configured in SAP

How to Create Storage Location in SAP MM

Transaction code :- OX09
IMG Menu Path :- SPRO> SAP Customizing Implementation Guide >Enterprise
Structure Definition > Material Management > Maintain storage Location
Step 1 :- Enter Transaction Code SPRO in the command field and press enter

Step 2 : - Click on SAP Reference IMG

Step 3 :- Follow the menu path as per below screen shot and click on maintain
storage location

Step 4 :- Enter the Plant key where the storage location is to be maintained and
press enter

Step 5 :- Click on new entries for creation new storage location

Step 6 :- Enter Key in Sloc and description of storage location

Step 7 :- Select storage locations and double click on address of storage locations

Step 8 :- After double click on address of storage locations, click on new entries and
give 1 in NO field.

Step 9 :- Update the address of the storage locations

After updating address click on save icon.Thus New storage locations are configured

How to Create Sales Group in SAP | Sales

Group SAP

IMG Menu Path :SPRO > SAP Implementation Guide (IMG) > Enterprise Structure > Definition > Sales
and Distribution > Maintain Sales Group

Step 1 :- Enter T Code SPRO in SAP Command Field and press enter from Key board

Step 2 :- In next screen Click on SAP Reference IMG

Step 3 :- Follow the IMG Menu Path

Step 4 :- Next click on New entries to maintain new sales group

Step 5 :- In Next screen update the required data

Sales Group :- Enter 3 digits key of Sales Group

Description :- Update the description of the sales group

Step 6 :- After maintaining Sales group and description click on save Icon

Thus sales groups are successfully configured in SAP SD

Define sales districts for customers

SAP IMG Path: SPRO > IMG > Sales and Distribution > Master data > Business
Partners > Customer > Sales > Define Sales Districts for Customers
Transaction Code: OVR0
On the change view customers :sales districts: overview screen, select new entries

On the new entries: overview of added entries screen, enter the following fields.

Enter new sales district key in sales district field

Update the name of sales district

Choose save button to save the data. Successfully you have define sales districts in SAP

Define Regions in SAP

SAP IMG Path: SPRO > SAP Customizing Implementation Guide (IMG) > SAP
NetWeaver > General settings > Set Countries > Insert Regions

Click on Insert Regions and on the change view Regions: Overview screen select
New entries

On the New entries: Overview of added entries, update the following fields

Update two digits country key

Enter two digits region key

Update the description of the region

After updating the information click on save button to save the data

Assigning Organizational Units

1. Assign company code to company
2. Assign Sales Organization to Company Code
3. Assign Distribution Channels to Sales Organization
4. Assign Divisions to Sales-Organizations
5. Assign sales office to sales area
6. Assign Sales Group to sales office
7. Assign Plant to Company Code
8. Assign sales organization /distribution channel to plant
9. Assign shipping point to plant
10.

How to Assign Company Code to

Company in SAP

Assign Company Code to Company

Menu Path :SPRO > IMG Reference > Enterprise Structure > Assignment > Financial
Accounting > Assign Company Code To Company
Transaction Code :- OX16
The following are the steps to Assign the Company Code to Company in SAP
FICO
Step 1 :- Enter the T-Code SPRO in the commend field

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the Path as per below screen shot

Step 4 :- Click Position

Update company code for which you wants to assign and Enter

Step 5 :- Update Company ID in Company field and click on save icon

Thus company code AD06 was assigned to Company ADARSH

ow to Assign Sales Organization to Company

Code
The following tutorial guides you how to assign sales organization to company code
step by step with screen shots
IMG Menu Path :- SPRO > IMG > Enterprise structure > Assignment > Sales and
Distribution > assign sales org to company code

Select position and update sales organization code and press enter

Update company code in the CoCd field and press enter

Click on save icon to save the configured data. Thus sales organization is successfully
assigned to company code.

Assign Distribution Channel to Sales

Organization

The following tutorial guides you how to assign distribution to sales

organization in SAP
IMG Path :- SPRO > IMG > Enterprise structure > Assignment > Sales and
distribution > Assign distribution Channel to sales organization
Click on new entries to Assign the distribution channel to sales organisation

Enter Sales organization key and distribution Channel, press enter key to
validate the data by system.

Click on save icon to save the configured data. Successfully

assigned distribution Channel to sales organisation

Assign Division to Sales Organization SAP

IMG menu path :- SPRO > SAP Implementation guide > Enterprise structure >
Assignment > Sales and Distribution > Assign Division to Sales Org

Click on new entries to assign divisions to sales organizations.

Update sales organization code in the SOrg. field and Division code in the Dv field, after
updating press enter

After assigning all the divisions to the sales organization, click on save icon to save the
configured data.

Assign sales office to sales area in SAP

IMG menu Path :- SPRO > SAP Implementation guide > Enterprise structure >
Assignment > Sales and Distribution > Assign sales office tosales area

Click on New entries to assign all sales offices to sales area.

In next new entries screen, update the following data.

SOrg :- Update the Sales Organization code
Dchl :- Update the distribution channel code
DV :- Update the division code
SOff :- Update the sales office code

After updating all the information click on save icon to save the configured data.
Thus Sales office is successfully assign to sales area

Assign sales group to sales office in SAP

IMG menu Path :- SPRO > SAP Implementation guide > Enterprise structure >
Assignment > Sales and Distribution >Assign sales group to salesoffice

Select New Entries for assigning the sales group to sales office

In next screen update the following data,

1. Update sales office code in the SOff field
2. Update the Sales group code in the SGrp field

After updating the data, select save icon or (Ctrl+S) to save the configured data.
Thus Sales groups are successfully assigned to sales office.

Assign Plant to Company Code | SAP OX18

MG Menu Path :- SPRO > SAP Customizing Implementation Guide (IMG) >
Enterprise Structure > Assignment > Logistics General >Assign Plant to Company
Code
Step 1 :- Enter Transaction Code SPRO in the command field and press enter

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the Menu Path as per below screen shot

Step 4 :- Click on New entries

Step 5 :- Update Company code in cocd field,and update plant code in plnt field and
press enter

Step 6 :- Click on save icon

Thus Plant is successfully assigned to Company code.

Assign sales organization /distribution

channel to plant
SAP IMG Path: SPRO > IMG > Enterprise Structure > Assignment > Sales &
Distribution > Assign Sales organization/Distribution channel to Plant

On the change view assignment sales organization /distribution channel -plan, select
new entries

On new entries: overview of added entries screen, enter the following fields.

Enter sales organization key in sales org field

Enter distribution channel in the dchcust/mt field

Enter plant code in the plant field

Click on save icon to save the data. Successfully you have assigned sales
organization/distribution channel to plant.

How to assign shipping point to plant

Assign shipping point to plant
The following tutorial guides how to assign of shipping point to plant.
Access the transaction by using the following navigation option.
SAP IMG Path: SPRO >> IMG >> Enterprise Structure >> Assignment >> Logistic
Execution >> Assign Shipping Point to Plant

Select the find button to search for plant

Enter plant in the find field and select plant from the list

Click on assign button and select shipping point from the list. Press enter

Click on save
button to the data. Successfully you have assigned shipping point to plant.

Successfully shipping point is assigned to a plant.

Pricing
1. Define Condition tables
2. Define Condition Types
3. Define Access Sequence

Define Condition Tables for pricing in SAP

SAP IMG Path: - SPRO >> SAP Reference IMG (F5) >> Sales and Distribution >>
Basic Functions >> Pricing >> Pricing Control >> Define Condition Tables
Transaction Code: V/03

The following are the standard condition tables configured in SAP.

TabShort Description
304Material with release status
305Customer/material with release status
359Plant/Matl group
367 Country/Plant/Region/Material
368Country/PlntRegion/Region/TaxCl1Cust/TaxCl.Mat

In next screen, choose create condition table to create new tables

Update the following fields

Enter condition table in the table field

Enter existing condition table to copy from condition

After copying the data, modifying the table as per your business requirements.

Define Condition Type for pricing in SAP

Define Condition Type for pricing
SAP IMG Path: SPRO > SAP Reference IMG > Sales and Distribution > Basic
Functions > Pricing > Pricing Control > Define Condition Types
Transaction code: V/06
On choose activity screen, select Maintain condition type

You can define new condition type by copying existing condition types or you can create
new entries by selecting new entries
Click on position button and choose condition type from the position button and click
on copy as icon

Define Condition type as per Business requirement. Rename the condition type

1. Control data 1: Under condition data 1, enter the following data

Condition class: (e.g. A- Discount or surcharge, B- Prices, E- Expense reimbursement,

D- Taxes etc.)
Condition type: (e.g. A- Percentage, B- Fixed amount, C- quantity, G- Formula etc)

Condition category: (e.g. tax, basic price, freight, cost etc)

Rounding rule: (example. commercial, round down, round up)

Structure condition: (e.g. condition to be duplicated, cumulation condition)

Plus/minus: (e.g. positive, negative or both)

2. Group condition: In group condition section enter the following data.

Group condition: (Group cond indicates the system calculates the basis for the value
more than one item in a document)
RoundDiffComp: (The system controls the rounding difference comparison)

Group condition routine: (Specify the routine to the group condition type)

Changes which can be made section:

Master data section:

Scales section

Control data 2 section:

After maintaining all the required data, click on save icon to save the data.

Define Access Sequence in SAP

he following tutorials guides how to define access sequence in SAP step by step.
Step 1: Access the transaction by using one of the following navigation method
SAP IMG Path: SPRO > SAP Reference IMG > Sales and Distribution > Basic
Functions > Pricing > Pricing Control > Define Access Sequences > Maintain Access
Sequences
Transaction code: V/07

On choose activity screen double click on Maintain access sequences

On change view access sequence overview screen, click on new entries

Enter access sequence and description

Double click on access, select new entries and enter table no, access number and
enter.

Click on field and maintain mandatory fields

Click on save button to save the configured data.

SALES
1. Define Sales Document Types in SAP SD
2. Define number range for sales document types
3. Define item category
4. Assign Item Category
5. Define Billing Types

How to Define Sales Document Types in

SAP
The Sales Order is an important and essential element in SD related activities. In the
business scenario all the Deliveries and billing can be done with reference to a sales
document only. SAP system provides different types of sales document
1. Credit Memo Request
2. Debit Memo request
3. Standard Order
4. Returns etc.
Configuration steps :IMG Menu Path :- SPRO > IMG > Sales and Distribution > Sales > Sales Documents >
Sales Document Header > Define Sales Document Type
Transaction code :- VOV8
Enter T code VOV8 in the sap command field and press enter

click on New Entries to define sales document types

Update mandatory fields

After entering all the required fields, click on save icon to save the configured data.

Define number ranges for sales document

types in SAP
Define number ranges for sales document types
The following tutorial guides you how to define number ranges for sales document types
in SAP SD step by step with screen shots
IMG Menu Path : SPRO >> IMG >> Sales and Distribution >> Sales >> Sales
Documents >> Sales Document Header >> Define Number Ranges Sales Documents
Transaction code :- VN01
Enter T code VN01 in the sap command field and press enter

Select change interval to maintain the number range for document types

In next screen select Insert Interval

Update the following data :NO : Update the document No for Adocument type, no should be same where you
updated in document types
From Number : Enter Starting number for the document type
To Number : Enter up to number for the document type
Current Number : current number 0 by default
EXT : check this option if you want maintain the document number manually

After maintaining the number ranges for sales document types,click on save icon to
save the configured data.

Define Sales Document Item Category

Configuration guide to define document item category in SAP SD .
SAP R/3 IMG Menu Path : - Sales and Distribution > Sales > Sales Documents > Sales
Document Item > Define Item Categories
Transaction code : VOV7

Step 1 : - Click on New Entries button to create new item category

Step 2 :- Update the following data

1. Enter Item category key and description of item category
2. Update the Business data (Completion rule, Billing Relevance, Special stock, Pricing,
Sched.Line Allowed, Determine cost etc.)
3. Select appropriate general control (Autom.batch determ, Rounding permited, Order qty
=1)
4. Transaction flow (Screen seq.Grp)
5. Bill of Material/Configuration (config. strategy, Mat. variant action, variant matching,
manual alternative etc.)
6. Value contract ( Value contract matl, contract realese ctrl)
7. Service management
8. Control of resource related billing and creation of quotations

Assign Item Category

The following tutorial guides how to Assign Item Category in SAP step by step.

Step 1: - Access the transaction by using following navigation option

SAP IMG Path: SPRO > SAP Reference IMG (F5)> Sales and Distribution > Sales >
Sales Documents > sales document item category > Assign Item Category
Step 2: On the change view item category assignment overview screen, click on
new entries

Step 3: - Enter the mandatory fields such as sales document type, item category, item
category group, Manual item category.. etc.

Click on save icon to save the configured data

Click on save icon to save the configured data.

How to Define Billing Document Types SAP

The following configuration guides you how to define billing document types in SAP SD
step by step.
SAP R/3 IMG Path : IMG > Sales and Distribution > Billing > Billing Documents >
Define Billing Types
Transaction Code : VOFA

Step 1 : Enter transaction code VOFA in the SAP command field and press enter
Click on Define Billing Types

You can define new billing type by copying existing billing type or defining new billing
type by selecting New entries button
Step 2 :- select New entries

Update all the required data as per business requirements Billing types, Billng
description, Number systems, SD document category, cancel billing type, Account
assignments/pricing,

After updating all the required data, choose save icon to save the configured data

How to Define Billing Document Types SAP

The following configuration guides you how to define billing document types in SAP SD
step by step.
SAP R/3 IMG Path : IMG > Sales and Distribution > Billing > Billing Documents >
Define Billing Types
Transaction Code : VOFA

Step 1 : Enter transaction code VOFA in the SAP command field and press enter
Click on Define Billing Types

You can define new billing type by copying existing billing type or defining new billing
type by selecting New entries button
Step 2 :- select New entries

Update all the required data as per business requirements Billing types, Billng
description, Number systems, SD document category, cancel billing type, Account
assignments/pricing,

After updating all the required data, choose save icon to save the configured data

Tax Configuration
1. Define Procedure
2. Define Condition types
3. Assign Country to Calculation Procedure
4. Specify Structure for Tax jurisdiction code
5. Define Tax Codes

6. Assign Tax Codes for Non-Taxable Transactions

TAX Check Calculation Procedure SAP

Check Calculation Procedure SAP
The following tutorials guides you how to check calculation procedure in SAP step by
step
IMG Path :- SPRO > IMG > Financial Accounting > Financial Accounting Global
Settings > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure
The standard system comes with two tax calculation procedures.

TAXINN Condition Based

TAXINJ Formula Based

TAXINN :- TAXINN supports only condition based excise determination

TAXINJ :- TAXINJ support the condition based and as well as formula based excise
determination
The difference between TAXINN and TAXINJ procedure is, TAXINN is a condition
based and we have to maintain condition records for each condition type and TAXINJ
is a formula based for which we maintain a tax code by using FTXP
Tax calculation procedure configuration process :- Tax procedure can be defined by
coping existing procedure or by defining new entries
Select Define procedure

Select TAXINJ and click on copy as icon,

Update your new tax procedure key and press enter
Then select copy all , all the entries from TAXINJ copied to new tax procedure
TAXADE

Select Tax procedure and double click on control data

Next control data overview screen , check all condition type, add new conditional as
per company requirement

Click on save icon to save the configured data. Successfully you defined new
procedure

Condition types for Taxes

Standard SAP provides you condition types which are defined in the SAP System. You
can create new customized condition types as per your business requirements.
SAP IMG Path: - SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial
Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Check
Calculation Procedure > Define Condition types
Transaction Code: OBYZ

Step 1: Click on condition type

Next change view condition: condition types overview screen, click on new entries to
define new condition types

Step 2: Enter the following fields

Maintain the condition class

Maintain the calculation type

Maintain access sequence for the tax condition type

Select the condition category

Select the group condition if it is applicable

Update the fields Changes which can be made

After maintain the data, click on save icon to save the configured data. Successfully you
defined new condition types for taxes.
Similarly create new condition types for CST, VAT, Service taxes, Excise duties etc. After
creating new condition types, assign to tax procedure.
click on define procedures and in next screen select tax procedure and double click on control
data.

Choose New entries and update the following fields .

1. Enter step number
2. Enter condition type key

3. Enter the from number (tax to be calculate from step#)

4. Select account key( input tax, output tax etc.)

Choose save icon to save the configured data.

How to Assign Country to Calculation

Procedure
IMG Path :- SPRO > IMG > Financial Accounting > Financial Accounting Global
Settings > Tax on Sales/Purchases > Basic Settings > Assign Country to Calculation
Procedure
Transaction code :- OBBG
After defining Calculation Procedure, next step assigning country to calculation
procedure
>> Select position and update country key

Update tax procedure key in the procedure field and press enter

Click on the save icon to save the data, successfully country assigned to calculation

Specify Structure for Tax jurisdiction code

SAP IMG Path: SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial
Accounting global settings > Tax on sales/Purchase > Basic setting > Specify
structure for tax jurisdiction code
Transaction Code: OBCO

Update the following fields

1. Enter the name of the tax jurisdiction code structure
2. Update the description of tax jurisdiction code structure

3. Enter the length of first level, second level, third level and fourth level of
hierarchy within your tax jurisdiction code structure.
4. Set the Tax ln indicator to determine taxes on a line by line.

Click on save icon icon to save the configured data

How to Create tax codes in SAP FTXP

SAP IMG Path: SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial
Accounting Global Settings > Tax on sales/purchase > Calculation > Define tax codes
for sales and purchases
Transaction Code: FTXP

Step 1: A pop up screen will be open asking for country key that you are configuring
for. Enter country key and press enter to continue

Step 2: Enter new tax code in the tax code field and enter

Step 3: Update the following data.

1. Update the description of tax code
2. Enter tax type i.e V is for Input Tax and A is for output tax

Step 4: Enter tax rate in the tax.percent.rate field

Choose save icon to save the data. A message will be displayed as Tax code was
created

Assign Tax Codes for Non-Taxable

Transactions
SAP IMG Path :- SAP Reference IMG (F5) > Financial Accounting > Financial
Accounting Global Settings > Tax on sales/purchase > Postings > Assign tax codes
for non taxable transactions.
Transaction Code: OBCL

Select position button and enter your company code

Update Input tax (V0 0% input tax) and output (A0 0% Output tax) indicator for
non-taxable transactions.

Choose save icon to save the data. Successfully you have assigned tax codes for nontaxable transactions in SAP.

Customer Master Data

1. Create Customer Account Groups
2. Create Number Ranges for Customer Accounts
3. Assign Number Ranges to Customer Account groups
4. Define Tolerances Group for Customer
5. Partner determination procedure
6. Customer Payment Terms
7. Create Customer Master Record
8. Customer interest calculation configuration
9. Dunning procedure for customers

How to Create Customer Account Groups in

SAP
Let configure the below customer account groups

Group
Name
A001 Domestic Customers
A002 Export Customers
A003 One time Customers

Steps to create customer account group :IMG Menu Path :- IMG > Finance Accounting > Accounts Receivable and
Accounts Payable > Customer Accounts > Master Data > Preparation for creating
customer master data > Define Account Groups with screen layout (Customer)
Transaction Code :- OBD2
Step 1 :- Enter Transaction code SPRO in the SAP command field and press enter

Step 2 :- Select SAP Reference IMG

Step 3 :- Follow IMG Menu Path and select

Step 4 :- Select New entries to create new customer account group

Step 5 :- Update the following data.

Account Group :- Enter four digits customer Account group code
Description :- Enter the name of customer account group.

Select Company code data under field status and select Account management under
group,

Select Reconciliation account as required entry

Step 6 :- Select Save Icon to save the configured settings

Similarly create customer account groups for A002, A003.

Thus customer account groups are successfully configured in SAP

How to Create Number Ranges for Customer

Accounts
IMG Menu Path :- IMG > Finance Accounting > Accounts Receivable and Accounts
Payable > Customer Accounts > Master Data > Preparation for creating customer
master data > Create Number Ranges for Customer Accounts
Transaction Code :- XDN1

Step 1 :- Enter Transaction code SPRO in the SAP command field and press enter
from Key board.

Step 2 :- Select SAP Refernce IMG

Step 3 :- Follow the IMG Menu Path

Step 4 :- Select Change interval for creating number ranges for customer accounts

Step 5 :- Select Insert Interval

Step 6 :- Update the following information and Enter

1. NO :- Enter NO that you want to identify the Customer accounts number range
2. From Number :- Enter from number of Customer number range
3. To number :- Enter to number of Customer number range
4 .Ext :- Select EXT box if you want External numbering

Step 7 :- Select Save and ignore the warning message press enter.

Assign Number Ranges to Customer Account

Groups
Steps for Assign Number Ranges to Customer Account
Groups
IMG Menu path :- Implementation Guide for Customizing (IMG) -> Financial
Accounting -> Accounts Receivable and Accounts Payable -> Customer Accounts ->
Master Data -> Assign Number Ranges to Customer Account Groups

Step 1 :- Enter transaction Code SPRO in the SAP command field and press enter

Step 2 :- Select SAP Reference IMG

Step 3 :- Follow the IMG menu path

Step 4:- Select Position

update Customer account group that you to assign number ranges and press enter

Step 6 :- Click on save icon to save configured setting

Thus Number range is successfully assigned to Customerr account groups

How to Define Tolerance group for

vendors /Customers
Importance of tolerance group : The tolerance group is very important to define
in SAP system to facilitate dealing with the differences in payment
SAP R/3 IMG Menu Path : - IMG > Financial accounting > Accounts receivable and
accounts payable > Business transactions > Outgoing payments > Manual outgoing
payments > Define Tolerances (Vendors)
IMG > Financial accounting > Accounts receivable and accounts payable > Business
transactions > incoming payments > Manual incoming payments > Define
Tolerances (Customer)
Transaction Code : OBA3
Enter transaction code OBA3 in the SAP command field and press enter

Click on New Entries to define tolerance group for customers and vendors.

Update following data

1. Company code : Enter your company code

2. Tolerance group: Keep blank tolerance group field and update the description
of tolerance
3. Permitted Payment differences: Enter amount and percent for gain and loss i.e
100 inr or 5% whichever is lower.

Click on save icon to save the configured data. You have successfully maintain tolerance
group for vendors and customers.

Define partner determination procedure sap

SAP IMG Path: SPRO > SAP Reference IMG > Sales and Distribution > Basic
Functions > Partner Determination > Setup Partner Determination

On choose activity screen, click on Setup partner determination for Customer Master

On change view partner determination procedures: overview screen, select new entries

Select partner functions

On change view partner functions: overview, click on new entries

Update the following

information

Enter function name and name of partner function

Enter partner function type

Check unique field indicator if the selected partner function is used only once or it
cant have the multiple partners of that function in the customer master data.

Click save button to save the data.

Select Account group and click on new entries

Update the partner function and account group and press enter

Select Partner Determination Procedure and go to new entries and define partner determination
procedure

Select defined partner determination procedure and click partner function in procedure

In next screen assign

the partner function to partner determination procedures

Click on save icon to save

the configured data.

Customer Payment Terms

Maintain terms of payment SAP

Maintain terms of payment

The following tutorial guides you how to Maintain terms of payment in SAP. We are
creating payment term key CP03 which is applicable for both customers and vendors.
Payment terms: If the payment is made with in 14 days 5% discount, or with in 20
days 2% discount, net due 30 days.
SAP IMG Path: SPRO >SAP Reference IMG (F5) > Financial accounting > Accounts receivable and
accounts payable > Business transactions > Incoming invoices / Credit memos >>
Maintain terms of payment
Transaction code: OBB8
Step 1: - Yo can get the payment term configuration screen by IMG path or by entering
t-code OBB8
Click on New entries to create new payment terms

Step 2: In new entries screen, enter the following fields

1. Payment terms: Enter four digits payment term key.
2. Sales text: Enter a short description of payment term key and text limit is 30
characters.
3. Own explanation: This field is used to give a detail explanation of payment term key.
It will be override the explanation that is automatically generated by the system.
4. Customer: Select this option if the payment term to be used for Customer accounts
(accounts receivable).
5. Vendor: Select this option if the payment term to be used for Vendor accounts
(accounts receivable).
6. Block key: If Select appropriate block key to block certain activities like payment block,
payment clearing etc.
7. Select appropriate base line date calculation option from the list.

8. Percentage: Enter the discount percentage rate.

9. No of Days: Enter the no of days from base line date for which the discount percentage
rate is valid.
10.Fixed rate: If you dont want to use base line date, enter the days of month that the
discount ends.
11.Explanation: Detailed explanation automatically generated by the system

t save button to save the configured data. Successfully we have maintained terms of
payment for vendors and customers.

Selec

Create Customer master data by XD01

Create Customer master data
Customer master data can be created by using the following navigation options in
SAP. You can create customer master data by using the reference customer data or
creating new customer account.

Customers are business partners whom the organization does sales related
transactions.
SAP R/3 Path: - SAP Menu > Logistics > Sales and Distribution (SD) > Master Data >
Business Partner > Customer > Complete
Transaction Code: -XD01

Step 1: - In next screen, Create Sales Order update the following fields.

Select customer account group from the list

Enter your company code key

Enter your sales organization, distribution channel, division key

Update reference fields if you want to create customer master date by reference

Step 2: - Select address tab and update the following information

Select appropriate title (Company, Dr, Ms, Mr)

Enter customer name

Enter full address of customer

Update transport zone field

Step 3: Select payment transaction tab and update customer bank details

Step 4: - Select company code data button and update Reconciliation account and sort
key.

Step 5:- Select Sales area data (Ctrl+F3) and update the following fields

Go to Shipping Tab and update Delivery priority, Delivering plant

Go to Billing documents tab and update Incoterms, Terms of payments, Acct assgmt
group, Tax classification

After updating mandatory fields as per your business requirements, click on save button
to save the configured customer master data.

SAP Interest Calculation Configuration

Interest calculation configuration can be done by two methods i.e Interest

calculation on account balances and Interest calculation on areas.

Interest calculation configuration steps

Step
1:

Define
interest
calculation
procedure
Step
2:

Prepare
account
balance
interest
calculation
Step
3:

Define
reference
interest
rates
Step
4:

Define
Time
based
terms
Step
5:

Enter
interest
values
Step
6:

Create
G/L
Accounts
Step 7: Prepare G/L account balances interest calculation configuration procedure
The following steps describe the calculation of interest.

Step 1: Define interest calculation procedure

SAP IMG Path: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable
>Business Transactions > Interest Calculation > Interest Calculation Global Settings >
Define Interest Calculation Types
Transaction Code: OB46
Click on new entries and update the following entries

1. Enter your interest indicator in the Int ID field

2. Enter description of your interest indicator
3. Select interest calculation type .i.e Balance interest calculation type or item interest
calculation type

Click on save icon to save the configured data.

Step 2: Prepare account balance interest calculation

IMG Path: - SPRO > Financial Accounting > Accounts Receivable & Accounts Payable
>Business Transactions > Interest Calculation > Interest Calculation Global Settings >
Prepare Account Balance Interest Calculation
Transaction code: OBAA
Click on new entries and update the following entries

Enter your interest calculation indicator

Update the period determination i.e interest calculation frequency and settlement day

Select appropriate calender type (B- 30/360, G 28,,31/365)

Select output control for printing form and

terms of payment for posting

Step 3: Define reference interest rates

Path: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable
>Business Transactions > Interest Calculation > Interest Calculation > Define
Reference
Interest
Rates
Transaction Code: OBAC
Click on new entries and maintain the following entries

Enter your reference interest rate key, long text, Description, date from, valid currency
of ref.int. rate.

Click n save icon to save the data.

Step 4: Define Time based terms

Path: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable
>Business Transactions > Interest Calculation > Interest Calculation > Define TimeBased
Terms.
Transaction Code: OB81
Choose new entries and update the following entries

Enter your interest calculation indicator key in the int.cal.indicator field

Update the fields currency key, Eff. from, sequential number
Select the transaction type from the list
Enter Reference interest rate (Check step 3)

Choose save button to save the data.

Step 5: Enter interest values

SPRO > SAP Reference IMG (F5) > Financial Accounting > Accounts Receivable &
Accounts Payable >Business Transactions > Interest Calculation > Interest Calculation
>
Enter
Interest
Values.
Transaction Code: OB83

Enter the reference interest rate key in the reference field

Update the valid from and interest rate percentage

Click on save icon to save the data.

Step 6: Create G/L Accounts

Path: - IMG > Financial accounting > G/L Accounting > G/L Accounts > Master Data>
Preparations > GL Account Creation and Processing > Edit G/L Account
Transaction Code: Fs00
Create G/L accounts for Term loan, Interest paid, Interest received, loan
Step 7: Prepare G/L account balances interest calculation

procedure

SAP IMG Path: SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Bank Account Interest Calculation > Interest Posting > Prepare G/L Account Balance
Interest Calculation
Transaction Code: OBV2
Click on Accounts button and enter chart of accounts key and press enter to continue

Update the account symbols in the Acct symbol field, G/L Accounts as shown below.
After updating the required data click on posting specs

Click on posting specs button, then select edit option and then click on create button
and update the following information

Click on save icon to save the configured data. Successfully you have configured interest
calculation in SAP.

Dunning Procedures for Customer

Configuration Steps SAP
Dunning Procedures Configuration
Step 1: Access the transaction by using one the following navigation method
SPRO > IMG > Financial Accounting (new) > Account receivable and Account payable >
Business transactions > Dunning > Dunning procedure > Define Dunning Procedures.
Transaction code: FBMP

Step 2: Click on New procedure to define new dunning procedure

Enter the following data.

Dunning procedure: Enter any four code

Name: Dunning procedure for customers

Dunning interval in days: 7 (You can maintain maximum 9)

Number of dunning levels: 4

Line item grace period: 3 days

Interest indicator: Update appropriate interest calculation indicator

Activate the standard transaction dunning check box.

Press two times enter key and ignore the warning message
Step 3: Select Dunning texts button

Update company code and select customer radio button.

Select new company code button and update company code and press enter.

Select separate notice per dunning level check box.

Go back (F3) and select Yes button for the message to save the date.
Step 4: Click on dunning levels button and select check box always dun for all the four
levels.

Step 5: Select charges button (F6) and update the currency key.

On the Maintain Dunning Procedure: charges screen, maintain dunning level and
dunning charges

Select dunning texts and update the Form that Specifies which is to be displayed for the
dunning level.

Go back (F3), ignore warning messag and click on save button to save the configured
data.
Step 6: Assign dunning procedure in customer master
Accounting > Financial accounting > Accounts receivable > Master records > Maintain
centrally > Change
Transaction code: XD02
Enter Customer code and company code

Select company code data and then select correspondence tab

Update dunning procedure key to assign dunning procedure for customers master data

After assigning, click on save button to save the data.

Define Warehouse numbers in SAP | Create

warehouse

Define warehouse
Assign warehouse to plants and storage locations

Create the storage types.

SAP IMG Path: - SPRO > IMG > Enterprise structure > Definition > Logistics execution >
Define, copy, delete, check warehouse number.
Enter transaction SPRO in command field and press enter on the key board.

Next Customizing execute project screen select SAP Reference IMG

After Selecting SAP Reference IMG, a new screen IMG Path will be displayed. Select Define,
copy, delete, check warehouse number.

On the Choose activity screen, double click on the define warehouse number.

In the next screen, click on the new entries to define warehouse numbers.

On the new entries screen, update the following fields.

WhN - Enter the three digits alphanumeric unique number in the warehouse no. field.
Warehouse no. description: - Update the name of the warehouse number

After maintains the warehouses click on save button to save the entries.