SD Integration with other Modules

The competitive environment compelled business and its partners to have coordination and
cooperation in achieving mutual goals.

Which resulted in an integrated approach towards the process involved?

SD Module is integrated with various modules during transaction process and reporting.

1. Sales Order Integration Points:

I. Availability Check (MM)

II. Credit Check (FI)
III. Costing ( CO/MM)
 IV. Tax Determination (FI)
V. Transfer of Requirements ( PP/MM)

2. Delivery Goods Issue – Integration Points

I. Availability Check (MM)

II. Credit Check ( FI)
III. Reduces Stock (MM)
IV. Update Stocks Valuation (FI/CO)
V. Requirement Elimination ( PP/MM)

3. Billing Integration Points

I. Debit A/R (FI/CO)

II. Credit Revenue ( FI/CO)
III. Update G/L (FI/CO) (Tax, Discounts, Surcharges etc)
IV. Milestone Billing (PS)

4. Return Delivery & Credit Memo – Integration Points

I. Increase Inventory (MM)

II. Updates G/L (FI)
III. Credit Memo (FI)
IV. Adjustment to A/R (FI)
V. Reduces Revenue (FI)
The Relation between SD and MM:

1. When you create Sales order in SD, all the details of the items are copied from Material
master of MM.
2. MRP and availability check related data is also taken from MM although you control this
data in SD also
3. While you create Inbound / Outbound delivery with reference to a Sales order, the
shipping point determination takes place with the help of loading group, plant data,
shipping conditions etc. This also refers to Material master.
4. The material which you are entering in Sales order must be extended to the Sales area of
your sales order/ customer otherwise you cannot transact with this material.
The link between PS – SD:

1. Billing Plan, at each WBS element, network and activity level

2. DIP profile which is assigned to Item category, DIP for resource related quotation works
only with ECP (Easy cost planning).
3. Sales Pricing – generally there are 2 types of Sales pricing in PS Lump-sum contract and
unit rate contract.
4. BOS – Bill of Services which has to be activated. It is industry specific solution. If BOS is
activated you also have integration for vendor RFQ and analysis.
5. Resource related billing.

The link between SD, MM and FI:

1. Whenever you create a delivery & post goods issue, goods movement takes place in
the back ground.
 E.g. In case of normal goods issue, Movement type 601 takes place.

This movement type is configured in MM. Also, this movement type hits “Cost of Goods Sold”
G/L account in FI. Every such movement of goods hits relevant G/L account.

2. The accounts posting to FI are done with reference to the billing documents (Invoice,
Debit note, Credit note etc) created in SD. Values are posted to relevant Revenue &
Receivable G/L accounts.
3. In case of a tax determination also, there is a direct link between SD and FI. Here Tax
code is the integration point between SD and FI.

The link between SD and FI Account Determination:

1. All Billing transactions happening in the Sales and distribution module will result in
FI postings.
2. All accounting entries with respect to the billing will have one side of the account as
Customer or receivable and the other side to be a revenue account.

i.e., Customer Account _Dr To Revenue Account _Cr.

 3. You make the allocation for each of these through condition technique.

4. SAP provides the following six ways of determining the G/L accounts in SD

I. Application ( Key for the Sales and distribution application)

II. Account determination type
III. Chart of Accounts
IV. Customer Account assignment group
V. Materials Account assignment group
VI. Account key

Business area represents an organizational unit for which you can carry out internal reporting.
A company code may be divided in to multiple business areas. A business area may also be
shared by several company codes. For this reason, business areas must have the same description
in all company codes. Depend on the division in sales area while creating sales order, business
area can be determined.

Chart of Accounts is a list of all G/L accounts used by one or several company codes. For each
G/L account, the chart of accounts contains the account number, account name, and the
information that controls how an account functions and how G/L account is created in company
code.

Account Assignment group for Payer: This allows you to divide customers in to different
groups
E.g: Domestic and Overseas Customers

Account Assignment group for Materials: This allows you to divide materials in to different
groups.

E.g: Services and retail goods

Account Key: Account keys are assigned to the condition types in the pricing procedures; this
allows conditions such as freight conditions to posted to special freight revenue accounts.

The link between PP – SD:

1. On the creation of a Sales order, requirement of a material get generated (Transfer of

requirement) which is then transferred to production planning.
2. In requirement class we have to configure the details that how we want to transfer the
requirements to Production planning.
3. When we performs the MRP (Transaction code: MM02) system generates the production
planning based on Sales requirement.
SD Integration with other Modules through Transaction Codes