SAP: (for Functional Consultant)

SAP stands for Systems Applications and Products in Data Processing. Basically,
German software, It is the third largest company in the world.
SAP system is a business software package designed to integrate all areas of a
business. SAP R/3 is an old name of SAP ERP, R stands for Real time data processing
and 3 for the three-tier arc.
It has three tier client/server architecture:
1. Presentation Layer 2. Application Layer 3. Database Layer

>> SAP Classical Landscape:

1. SAP Development (We always make changes in this system)
2. SAP QAS/Testing System
3. SAP Production/Live System (We never make changes in this system)

>> Types of users in SAP:

1. End users
2. Super (Power) Users
3. SAP Consultants

>> Role of SAP SD Consultant:

1. SAP SD Support Consultant - look after the system and issues arising in the day
to day basis from the end users.
2. SAP SD Consultant (Implementation) - Organizing workshops and gathering
customer's requirements, scoping, gap analysis, preparing blueprints. Customizing
and delivering the solution.

>> SAP SD - Sales and Dictribution: Sales and Distribution Module is a part of SAP
logistics Module that manages customer relationship starting from raising a
quotation to sales order
and billing of the product or service. The SD module consists of all master data,
system configuration, and transactions to complete the sales and logistics
processes.

>> Types of Data in SAP:

1. Master Data
2. Transactional Data
3. Customizing Data

- Enterprise Structure is a Complete Structure of any company.

>> Organizational Units:

- Organizational units in the SAP system represent the structure of a company. In
other words, they correspond to the legal and/or organizational units of an
enterprise.
- SAP provides organizational units for all areas of your company (such as
accounting, purchasing, production, and warehousing).
- SAP ERP uses a range of organizational units designed exclusively for mapping
sales and distribution processes, such as the sales organization and distribution
channel.
- Other organizational units, such as the company code or plant, are required in
Sales and Distribution and other areas
>> Organizational Unit - Company Code:
- A company code can represent a company within a corporate group, or a subsidiary.
- A company code is the smallest organizational unit of Financial Accounting for
which a complete, self-contained set of accounts can be drawn up for purposes of
external accounting.
This includes recording all the relevant transactions and generating all the
supporting documents required for financial statements.

>> Organizational Unit - Sales Organization:

- To use the sales and distribution functions in the system, you need at least one
sales organization.
- In the sales statistics, the sales organization is the highest summation level.
- All sales and distribution documents, including orders, outbound deliveries, and
billing documents, are assigned to a sales organization.
- At least one sales organization has to be defined in the system and each one has
to be uniquely assigned to a company code.
However, more than one sales organization can be assigned to a single company code.

>> Organizational Unit - Distribution Channel:

- The distribution channel characterizes the way in which goods and services are
distributed.
- Distribution channels have to be assigned to at least one sales organization
(multiple assignments are possible).
- To use the sales and distribution functions, you need to define at least one
distribution channel in the system.
Use of distribution Channel are as follows:
1. to define responsibilities
2. to carry out flexible price structuring
3. to differentiate sales statistics.

- companies use different distribution channels to separate domestic sales from

foreign sales.

>> Organizational Unit - Division:

- You can group materials and services using divisions.
- You can also conduct statistical analysis by division.
- To use the sales and distribution functions in the system, at least one division
has to be defined in the system.
- Like motorcycle and laptops, both will be in different divisions.

>> Organizational Unit - Sales Area:

- A sales area is a combination of one sales organization, one distribution
channel, and one division.
- Each sales and distribution document is assigned to exactly one sales area. This
assignment cannot be changed.
- A sales area can belong to only one company code.
- When processing sales and distribution documents, the system accesses various
master data depending on the sales area.
This master data includes customer master data, prices, and discounts.

>> Organizational Unit - Plant and Storage Location:

- A plant is a location where material stock is kept and could represent a
production facility in the system.
- Different storage locations can be used to separate the stock within a plant.
- Plant and Storage locations can be used by all logistic areas in the system.
- To use the sales and distribution functions in the system, you need at least one
plant. Multiple assignments are possible.
- Each plant is uniquely assigned to a company code.

>> Organizational Unit - Shipping Point:

- The shipping point is the highest-level organizational unit of shipping that
controls your shipping activities.
- Each outbound delivery is processed by exactly one shipping point.
- The shipping point can be a loading ramp, a mail depot, or a rail depot. It can
also be a group of employees responsible for organizing very urgent deliveries.
- Each shipping point has to be assigned to at least one plant, but multiple
assignments are possible.

-- Before the sample company confirms an order for a customer, the system checks
from which delivering plant the corresponding material is to be delivered and
whether sufficient stock is
available.

------Sales Processes-----
>> Presales Activities:
- A sales and distribution process may be triggered by specific marketing and
presales measures (such as direct mailing campaigns, Internet campaigns, trade fair
sales activities,
or telephone campaigns)
- A possible result of such campaigns could be a nonbinding customer inquiry or a
request for a quotation.

>> Sales order processing:

- If the presales activities have been successful, the customers will order the
corresponding goods and/or services.
- The sales order contains all relevant information to process the customer’s
request throughout the whole process cycle.

>> Procurement:
- Before the ordered material can be delivered to the customer, it has to be
procured.
The way in which a material is procured for a customer order can depend on the
material itself as well as on the sales transaction.
- The material can be procured
1. directly from stock;
2. by replenishment from a vendor (via purchase requisition / purchase order);
3. by replenishment through own production (via planned order / production order).

>> Shipping:
- In Sales and Distribution, the creation of outbound deliveries is necessary to
begin the distribution subprocess.
- The delivery document controls, supports, and monitors numerous process steps,
such as:
1. Picking and confirming via transfer orders.
2. Packing.
3. Transport planning and monitoring via shipment documents.
4. Posting the goods issue.

- Outbound deliveries are normally created with reference to one or more sales
orders.
- To support the picking of the materials from the warehouse, transfer orders are
created (based on the information within the delivery). The transfer order is
essential for
controlling the goods movements within a warehouse.

>> Billing:
- After the completion of the distribution process, the creation of billing
documents can be done.
- This can be executed with reference to one or more outbound deliveries or with
reference to sales orders.
- The billing document serves several important functions:
1. It is the sales and distribution document that acts as the basis for creating
invoices.
2. It serves as a data source for financial accounting to help you to monitor and
process customer payments.

- When a billing document is being created, the General Ledger accounts are
normally determined automatically and the relevant data is posted.
Doing so, the system carries out the following:
1. A debit posting on the customer’s receivables account.
2. A credit posting on the revenue account.

>> Payment:
The incoming payment from the customer is recorded within the accounting
department. The data on the relevant General Ledger accounts is then posted
automatically:
1. A debit posting on the cash account.
2. A credit memo on the customer’s receivables account.

-- Contacts and actions are documents for sales support within presales.
-- Inquiries, quotations, contracts, scheduling agreements and standard orders are
examples of sales document types.
-- The documents within a sales and distribution process are linked to each other
via the document flow.

>> Creating an Order:

- For creating an order- GOTO Logistics > Sales and Distribution > Sales > Order >
Create.
- each sales document, like a sales order or a quotation, has to be assigned to a
certain sales area.
- Further on, most sales documents have to contain a customer number and at least
one item with a material number.
- Things required in order creation: Sold-to party, Ship to party, Req. del. date,
Material, Material Quantity

>> Sales document structure:

- A sales document is divided into three levels: header, item, and schedule line
level.
1. The data for the document header is valid for the entire document. This
includes, for example, the document number and customer-related data like the
relevant sold-to party.
2. Each item in the sales document contains its own data. This includes, for
example, data about the ordered materials and corresponding quantities.
3. Schedule lines contain delivery quantities and delivery dates. They clearly
belong to an item.
>> Creating an Outbound Delivery:
- Outbound deliveries are the basic documents for the different activities during
the shipping process (picking, packing, and posting goods issue).
- In most cases, they are created with reference to one or more sales orders that
are ready to be shipped.
- It is possible to create one or more outbound deliveries with reference to a
single order.
- 1. Shiping point? 2. Delivery Date? 3. Ship-to-party?
- To create outbound delivery: Logistics > Sales and Distribution > Shipping and
Transportation > Outbound Delivery > Create > Single Document > With reference to
sales order.
- To Check the stocks: Logistics > Material Management > Inventory Management >
Environment > Stock

>> Structure of delivery documents: A delivery document is grouped into two levels:
header and item level.
- The data for the document header is valid for the entire document. This includes,
for example, data for the ship-to party and deadlines for shipping processing.
- Each item in the delivery document contains its own data. This includes, for
example, data about the material, quantities, weights, and stock information.

>> Picking: To outline the picking process within SAP ERP, SAP recommends the usage
of transfer orders.
- Transfer orders for picking are always relevant for one warehouse number and are
created based on outbound deliveries.
- The system can combine more than one outbound delivery in a group of transfer
orders, provided the same warehouse number is used.
- The selection of outbound deliveries can be further restricted via the picking
date and the choice of certain shipping points.
- to create transfer order: Logistics > Sales and Distribution > Shipping and
Transportation > Picking > Create > Transfer Order > Single Document.

>> Posting Goods Issue: Posting the goods issue often is the final step within the
shipping process. When the goods issue is posted, the following is carried out
automatically:
- Inventory management: The quantity in inventory management and the delivery
requirements in materials planning are updated.
- Balance sheet accounts: The value change in the balance sheet accounts for
inventory accounting is posted.
- Financial accounting: The system creates further documents for financial
accounting.
- Billing due list: The billing due list is generated.
- Status update: The status in all associated sales documents is updated.
- Posting goods issue: Logistics > Sales and Distribution > Shipping and
Transportation > Post Goods Issue > Outbound Delivery Single Document.

>> Creating a Billing Document:

- The main type of billing documents is the invoice. The creation of invoices is
very often the last step during a sales and distribution process.
- Invoices can be created with reference to outbound deliveries (in case you
delivered physical products to the customer)
or with reference to sales orders (in case you have sold services).
- Creating a Billing Document: Logistics > Sales and Distribution > Billing >
Billing Document > Create, then enter outbound delivery no in the Document field
and press enter.
- Display the billing document: Logistics > Sales and Distribution > Billing >
Billing Document > Display. then goto > header > accounting overview.

>> Billing Document Structure: A billing document is grouped into two levels:
header and item level. The data is distributed across these levels as follows:
- The data for the document header is valid for the entire document. This includes,
for example, data about the payer and billing date.
- Each item in the billing document contains its own data. This includes, for
example, details about the material, billing quantities, and net values for the
items.

>> Effects of Billing Documents:

- When you save the billing document, the system automatically generates all the
required documents for accounting.
- It carries out a debit posting on the customer receivables account and a credit
posting on the revenue account
- The following also occurs when the billing document is saved:

1. The status in all related sales, delivery, and billing documents is updated.
2. The sales statistics in the sales information system are updated.
3. The data regarding the consumption of the customer's credit limit is updated.

>> Incoming Payment:

- Payment is a process that is part of the financial accounting application module.
- When an incoming payment is posted, the data on the relevant G/L accounts is
posted automatically.
- Payment supports: 1. Posting payments against invoices 2. Reconciling
differences
- Posting incoming payment: Accounting > Financial Accounting > Accounts Receivable
> Document Entry > Incoming Payments.
First check the pricing: Logistics > Sales and Distribution > Billing > Billing
Document > Display > Enter Billing doc no. > goto > pricing condition header
(calculate price here by
subtracting the discount from total amount)
then Post incoming payment: Accounting > Financial accounting > Accounts Receivabe
> Document Entry > Incoming Payments > Enter document data > in bank data enter
account no. and amount.
then in Open item selection, enter account no of the payer > document > Post.

------ Master Data in Sales and Distribution-------

- Master data is like a meta data, it is created at one place and used in your
transactions. diff types of master data are as follows:
1. Customer Master Data: Information of the customer.e.g., First Name, Last Name,
Email, Phone, Address,etc. (More in SS 2), T- Code for creation: xd01
Catagorize in 3 types:
a. General Data b. Sales area data(SS - 3,4,5,6) c. Company code data
- Creating Customer Master record: Logistics > Sales and distribution > Master data
> Business Partner > Customer > Create > Complete
- make sure to fill the company code > Reconcilation acct., fill shipping
conditions, fill delivering plant, fill incoterms(Costs and frights) and terms of
payment(tax classifation details)
- Change customer master data partner function: goto > Sales Area Data > Partner
Function > Add new partner function.
2. Material Master Data : needed for material information, need this material
master in the sells order or in the quotation.(SS - 8,9)
For creating: Logistics > Sales and Distribution > Master Data > Products >
Material > Trading Goods > Create.
For checking stock: Logistics > Material Management > Environment > Stock

3. Customer-Material Info Records : need for customer specific material data,e.g.,

Quantity. It uses Customer Master and Material Master. (SS - 10)
For creating: Logistics > Sales and Distribution > Master Data > Agreements >
Customer Material Information > Create.

4. Condition Master Data for pricing information: Relavant for the automatic
pricing, such as material price or customer discount.(SS - 12,13,14,15)
For Creating: Logistics > Sales and Distribution > Master Data > Conditions >
Select using condition type > Create.

5. Output Master Data: Output are used to send information to the customer via
various media. such as mail, EDI or Fax. e.g., Printout of a quotation or an order
confirmation.(SS - 17)
- In the output master data, you define the transmission medium, the time of a
transmission creation and the partner function for an output type.
- To display output master data for a particular sales document type:
logistics > Sales and distribution > Master Data > Output > Sales Document >
Display.
- To see, what are all the outputs available for an order:
logistics > Sales and Distribution > Sales > Order > Display > Open any one sales
order > More > Extras > Output > Header > Edit.

6. Common Master Data (SS - 18 ): If you do not need the master data, customer or
condition master data to be differentiated acc to division, you have to setup a
representative division.
- The master data in the representative division applies to all divisions for which
you have setup this reference. By doing this, you can minimize the efforts of
maintaining of master data.

- Control tables: These tables are maintained in customizing. -- (More explaination

needed)

- Incompletion Log: This is just a check whether you document is complete or not.
How to do incompleteness check for the order?: Logistics > Sales and Distribution >
Sales > Information System > Orders > Incomplete Orders > Status Group - 01 >
execute.

>> Availability Check:

Check availability check - Logistics > Sales and Dictribution > Master Data >
Products > Material > Other Material > Display
check customer material information - Logistics >Sales and Distribution > Master
Data > Agreements > Customer Material Information > Display

>> Complete and partial deliveries: some people prefer partial deliveries and some
prefer complete deliveries. (SS - 41,42)
- If the partial delivery field is empty in the shipping then you can do partial
delivery.
>> Automatic Data Determination and shipment scheduling:

- Determing the delivering plant automatically - (SS - 21): The plant is a

mandatory field to create and submit a sales order. It automatically determines
from the eithern of the options.
Things required to determine plant: 1. Customer/Material Info 2. Ship-to-
pary 3. Material
1. to check from which condition, the plant gets determined- logistics > Sales and
Distribution > Master Data > Agreements > Customer Material Information > Display >
Click Execute after
entering values, if it says "No info records found" then the value for the
delivering plant is not taken from a customer material information record.

2. to check the next option, go back, click Environment > Partner > Display ship-
to-party > Then click Sales area data > click shipping tab, if the delivery plant
is mentioned here, then
the plant is determined from the ship-to-party, if not, check the material master.

- shipping points per delivering plant (SS - 22, 23): Delivering plant + Shipping
conditions + Loading Group (Material Master)
To check which value from the three criteria have been used to automatically
determine shipping point:
Click shipping point in the all items menu > Goto > Header > Shipping > See the
shipping condition & we saw the delivery plant is 1000 > back > select item >
Environment > Display Material
> Click Sales: General tab > you will see the loading group value in Shipping data

- Route Determination (SS - 24, 25): Departure zone of the shipping point +
Shipping conditions + Transportation group + Transportation zone of the ship-to-
party

>> Backward scheduling (SS - 26): The system uses the longer of these two times
when scheduling deliveries. you get your product in the exact delivery date.

>> Forward scheduling (SS - 99): The confirmed delivery data is determined on the
basis of the new material availability date. you get your product as soon as
possible.

>> To change ship-to-party for different materials, double click on the material >
select Partners > Click ship-to-party partner field > Route and taxes will be
changed > Click redetermine

>> To see various dates, double click on material > Select schedule lines > select
the confirmed delivery date > Select shipping which is below the dates table.

>> Collective processing in sales and distribution (SS - 27 to 37):

- Collective processing in sales and distribution is about doing things
collectively, e.g., if you want create one billing document for
10 outbound deliveries, you can do it collectively. 2nd e.g., You want to create an
outbound delivery or multiple outbound deliveries for multiple sales order, you can
do it collectively.

- Create collective processing of documents due for delivery: Logistics > Sales and
Dist. > Shipping and Transp. > Outbound delivery > Create > Collective processing
of Documents Due >
Sales orders > Then Enter the delivery creation date "to" Field > to include two
ship-to-party no, you'll choose multiple selection in the ship-to-party line > Then
click Execute.
Since this sales order consists of two items with different ship-to-parties, the
items in this sales order must be processed further using two outbound deliveries.
Now, select the orders you want to process > then click Background > outbound
delivery got created, note the group no in collective processing log.

- To display collective processing log: Double click "Collective Processing Logs" >
Program > Execute > The group no is displayed in the first column of the log.

>> Collective processing in Picking: It can be performed in the following ways:

- Manually - you first select the desired outbound deliveries using criteria like
Shipping point, Picking date.
- Online
- Via a background job to be executed.

>> Collective processing for posting goods issue: To do this, select all the
outbound deliveries for which goods issue is ready to be posted using selection
criteria such as the forwarding
agent or route.

>> Sales Documents Basic Technical Background:

Sales order type (SS - 945):
- Sales document type(Order Type, e.g., OR) controls how the sales document behave,
similarly, delivery type and billing type used to create billing document.
- Rush order - Order type is RO, for this Rush order the outbound delivery will
automatically gets created and transfer order for picking will also gets created.
- Creating a sales order to ensure a delivery free of charge:

Item Catagory (SS - 946):

- Item catagory provide additional control functions for sales document.
- different item catagory effects the sales order and create a corresponding
document.
- we cannot enter item catagory, it gets determined automatically.
- change the item catagory of the 2nd item in our order and you will see the new
pricing will be carried out. All the item details is depend on item catagory,
in this case, one of the item details is pricing.

- item catagory determination: Criteria for the item catagory determination are the
Sales document type, the item category group, and usage.

>> Sales order processing:

Business partners from the customer master: 1. Sold-to-party 2. Ship-to-
party 3. Bill-to-party 4. Payer
- You can provide a customer master record for each partner.

- you enter sold-to-party, then ship-to-party, bill-to-party and payer is

automatically gets determined from Sold-to-party Customer Master Record.

>> Order Data from the Customer Master:

- Sold-to-party and Ship-to-party can be different, Delivery address, Goods
receiving hours, Tax is taken from Ship-to-party Master record.
- The payment condition in the document are taken form the payer master record.
- Bill-to-party contains the address in which the invoice is to be send.
- The Payment Cond. and incoterms in the item level are copied from the Header
level, different data at item level is not possible.

-- You can change different sold-to-party, ship-to-party for different items in

same level, you do this by double clicking the item then click business partner.

>> Blocks (SS - 44): In sales order you can Block Billing and Delivery. You can set
a billing block in Document Header and in the individual items.
- To block, go to sales order, in the sales section, you will see the Delivery
Block and Billing Block options, Set it from the drop down, the reasons are
mentioned in the options.

>> Item Rejection (SS - 45): If a customer does not want some of the items in a
quotation, you can assign a reason for rejection to those items. As a result, the
items get a completed status and
the business transaction can be completed without deleting the items. Reason for
rejection option is present in the Header Level.

- You can use copy control for rejecting multiple items.

>> Effects of changing the sold-to-party:

a) Redetermined Data:
1. Customer Master
2. Customer-master info record
3. Texts
4. Free goods
5. Prices
6. Output
7. Plant and shipping point

b) Unchanged Data: 1. Sales area 2. Sales office and sales group

3. Availability and Product allocation 4. Batches

-- You can check the status by: Display Sales order > Document Flow > Click on the
standard order > Click Status Overview > Expand items

>> Customizing Objects (SS - 49):

- Customizing for sales documents can be done at the header, item or schedule line
levels.

>> Basic Functions (SS - 50): You must configure some of the basic sales functions
for the sales documents, some of the basic sales function are as follows:
- Partner Determination
- Pricing
- Incompleteness
- Free goods
- Material Determination
- Requirements transfer
- Delivery Scheduling
- Output
- Text determination
- Credit management

>> Sales document types (SS - 51): System provides various sales document type to
represent business processes, e.g.- SS-51
- Define a sales document type: in SPRO > Sales and Distribution > Sales > Sales
document > Sales document header > Define Sales Docuemnt types > You can enter new
entry here or you can
copy with reference.

- When you Make enterprise structure, you copy the original sales document types to
another type and make changes into that.

-> /n - if you want to open in the same window.

-> /o - if you want to open in the new window.
-> You can use ctrl+F to find anything in SPRO if you don't remember the proper
path.

- You can change partner function in procedure or add another entry in Basic
Function Option of SPRO.

>> Item catagory (ss - 58, 967): item catagory is the one which controls items

- For giving goods for free, Set the material in the item level, set the quantity
then enter the higher level line item no (The item no for which you are giving free
goods).
then if you select that free goods and go to it's condition, you will see the net
value will be 0.00 EUR.

- To view the values maintained in the item catagory: SPRO > Sales and Distribution
> Sales > Sales Documents > Sales Document Item > Define Item Catagory > Position >
Search and check.

>> Item catagory determination:

- There is item catagory determination rule which is used to determine item
catagory (TAN, TANN, TAD, etc)
- item catagory determination is done from Sales document type, item catagory
group which takes the data from the material master, item usage and item catagory
of higher level item.
- To check item catagory assignment: SPRO > Sales and Distribution > Sales > Sales
Documents > Sales Document item > Assign item catagory.

>> Use BOMs in sales Documents - Skipped by faculty.

>> Schedule Line Catagory(SS - 60, 61): It is meant for controlling the schedule
lines.
- Schedule line catagory is defined by two character key, the first character in
the key indicates the sales process in which the schedule line catagory is used.
The second character indicates what happens to the schedule line within logistics.

- Define/Assign schedule lines: SPRO > Sales and distribution > Sales > Sales
Documents > Schedule Lines > Define or Assign Schedule line Catagory.

- Determination of schedule line catagory: Item Catagory(Sales document-> Item) +

MRP type(Material Master -> View : MRP 1)

>> Data Flow (SS - 62 to 70): Information is transfered from the preceding document
to the subsequent document.

- Creating a sales documents with reference: The creation of sales documents with
reference to preceding documents helps to build document flows, which in turn
describe business processes.