TATA TECHNOLOGIES ( I )

LTD.
WELCOMES YOU
TO

SALES AND DISTRIBUTION

LEVEL 2 TRAINING
Technologies
 Day 1
• Objectives of the course
• Organization Structure
• Master Data
– Business Partners
– Products and Services
• Sales Documents
– Types of sales documents
– Structure
– Various Views
– Numbering
– Incompleteness of sales documents

Technologies
 Day 1
– High Level Items
– Alternate items
– Deletion of items in sales documents
– Rejection
– Material listing and exclusion
– Material Determination
– Different Business Partners
– Match codes
– Lists
– Flow in sales documents

Technologies
 Day 2
• Sales Documents
– Copying and referencing
– Texts
– Outputs - Sending of automatic mail
– Changes to sales documents
– Deletion of a sales document
– Blocking
– Status management
– Configuration
– Automatic PO generation
– Third party orders

Technologies
 Day 2
• Product Proposals
• Cash Sales/Rush orders
• Returns
• Contracts
• Scheduling Agreements
• Returnable Packaging
• Consignment Stock

Technologies
 Day 3
• Shipping
– Shipping Cycle
– Structure of Delivery
– Screens in Delivery
– Copy of data into Deliveries
– Controlling Shipping Documents
– Processing Shipping Documents
– Picking and Confirmation
– Packing
– Goods Issue
– Decentralized Shipping
– Information and Analysis

Technologies
 Day 3
• Billing
– Introduction
– Document Structure
– Forms of Billing
– Billing Methods
– Creation of billing Documents
– Credit and Debit Memos
– Pro forma Invoice
– Cancellation
– Integration with accounts

Technologies
 Day 4
• Pricing
• Account Assignment
• Document Management
• Availability Check
• Transfer of Requirements
• Credit Management

Technologies
 Day 5
• Sales Support
• Information and Analysis
• SAP India Version
• Open House

Technologies
 At the end of the course the participants should :

• be able to understand and describe the terminology

and functions used in SD module
• be able to understand and perform various transactions
in the SD module.
• be able to comprehend the integration of the SD
module with the other modules in SAP.
• be able to understand the reporting and analysis tools
in SAP and analyze sales data.
• be able to understand the requirements for
implementing the SD module

Technologies
 What is not the
Objective of the course

The following are not the objectives of the course

• Mapping of your organization’s business processes with

the SAP processes during the course

• Acquainting the participant with the customization

process to configure the SD module

Technologies
 Organization Structure

• Organizational elements are structures that represent

the legal and/or organizational views of an enterprise
and form a framework that supports all business
activities.

• Defining your organization structure in SAP is an

important step and requires thorough analysis of how
your organization wants to do business

• In the SD Module the organization structure could be :

– The market oriented structure
– The internal organization structure
– The shipping related organization structure

Technologies
 Organization Structure

The market oriented structure comprises

• Sales organization

• Distribution Channel

• Division

• Sales Area

Technologies
 Organization Structure
Sales Organization

• Is responsible for distributing goods and services

• Is responsible for negotiating sales conditions
• Carries out each business transaction
• Every sales organization stands for a selling unit in
the legal sense, being responsible, for example, for
product liability and other recourse claims made by
customers.
• Regional subdividing of the market can also be
carried out with the help of sales organizations
• Is represented in the SAP by a four digit code

Technologies
 Organization Structure
Distribution Channel

• Are the means through which the sales materials

reach the customer
• Include - Retail trade, Wholesale trade, Direct Sales
etc.
• Is represented in SAP by a two digit code

Technologies
 Organization Structure

Division

• Is used to segment a business into product lines

• Allows you to make customer-specific agreements
like Partial deliveries, pricing agreements, special
payment terms etc.
• Is represented in SAP by a two digit code

Technologies
 Organization Structure

Sales Area

• Is a combination of sales organization, distribution

channel and division.
• Most of the SD transactions and analysis is done for a
sales area.

Technologies
 Organization Structure
S a le s A r e a

C lie n t

S a l e s O r g a n i s a t i o nS a le s O S r ga l e1 s O r
O R G 1 O R G 2

D C 1 D C 2 D C 3
D i s t r i b u t i o n C h a n n e l
D 1 D 2 D 3

D i v i s i o n D iv 1D iv 2D iv 1D i v 2D iv 2
P 1 P 2 P 1 P 2 P 2

Technologies
 Organization Structure

Internal Organization Structure comprises

• Sales Office
• Sales Group
• Sales Personnel

Technologies
 Organization Structure

Sales Office

• Represents geographical aspects of the organization

in business development and sales
• A Sales Office is assigned to a sales area
• Is represented by a four digit code in SAP

Technologies
 Organization Structure

Sales Group

• The staff of the sales office can be divided into

various sales groups which could represent the
various selling divisions
• Is represented by a three digit code in SAP

Technologies
 Organization Structure

Sales Personnel

• Individual sales persons can be assigned to sales

groups to represent the full hierarchy

Technologies
 Organization Structure

In t e r n a l S t r u c t u r e

C lie n t

S a le O f f ic e 1 S a le s O f f ic e 2
O F F 1 O F F 2

S a le s G r oS u a p l e 1s G r oS u a p l e 2s G r oS u a p l e 1s G r o
G R 1 G r 2 G R 1 G R 3

S a le s P e rS s ao l ne s P e rS s ao l ne s P e rS s ao l ne s P e r
A B C X Y Z J K L F G H

Technologies
 Organization Structure

The shipping related structure comprises

• Shipping Points
• Loading Points

Technologies
 Organization Structure
Shipping Points

• Is a fixed location responsible for scheduling and

processing deliveries to customers, as well as
replenishment deliveries to your own warehouses.
• A delivery is always carried out by one shipping point
only.
• The shipping point depends on the - Delivering
plant,Type of shipping (for example, train, truck)
,Loading equipment necessary
• Is represented by a four digit code in SAP

Technologies
 Organization Structure

Loading Points

• Shipping points can further be subdivided into

loading points

Technologies
 Organization Structure

S h ip p in g S t r u c t u

C lie n t

S h ip p in g P o in tS 1 h ip p in g p
S P 0 1 S P 0 2

L o a d in g P L o o i na dt i1 n g P L o o i na dt i2 n g P
L 1 L 2 L 3

Technologies
 Organization Structure

Integration of the sales organization structure

with Finance

• With the Company Code

• with the Business Area

Technologies
 Organization Structure
Company Code

• represents an independent accounting unit for

example a company in a corporate group
• Balance sheets and profit & loss statements, required
by law, are created at the company code level
• The sales Organization is assigned to the company
code.
• A sales organization can be assigned to only one
company code
company
SO
code

Technologies
 Organization Structure

Business area

• is an organizational unit within accounting that

represents a separate area of operations or
responsibilities
• are assigned based on
– Plant - divisions or
– Sales areas

Technologies
 Organization Structure

B u s in e s s a r e a A s

B u s in e s s A r e a

P l a n t D iv is i o n

Technologies
 Organization Structure

B u s i n e s s A

B u s i n e s s a

S a l e s D O i s r t g r ia b n u Di st i i ao v tni is o

Technologies
 Organization Structure

Integration of Sales structure with materials

• Integration of the plant

– with the Sales Organization and the Distribution
channel
– with the Shipping Point

Technologies
 Organization Structure
Plant

• produces goods, renders services, or makes goods

available for distribution
• can be a manufacturing facility or a warehouse
distribution center.
Shipping
SO DC Point

Plant Plant

Technologies
 Organization Structure

Case Presentation
• BMW India LTD. is a Company which is in the auto-
mobile industry and manufactures motorcycles.
• There are two company codes BMW
motorcycles(BM01) and BMW accessories (BM02).
• BMW motorcycles is a manufacturing company and
BMW accessories is a trading company.BM01 & BM02
sell motorcycles and accessories.
• Country of operation is India , the currency Indian
Rupee and the chart of accounts INT.

Technologies
 Organization Structure

Case Presentation
• There are 2 plants in BM01- PL01 & PL02 .
• PL01 is assembling motorcycles and PL02 is
manufacturing components for the motorcycles. There
is only one plant in BM02 -PT03 which is a fictitious
plant i.e. it does not carry out any manufacturing
activity.
• Purchasing of certain parts is centralized i.e. it is
across company codes.

Technologies
 Organization Structure

Case Presentation

• The company has two sales Organizations (BMS1 and

BMS2).
• Both the sales organizations sell their goods through
wholesale and retail.
• The products for BMW are divided into three groups -
Street Motorcycle, Motorcross motorcycle, and
Accessories.
• The sales Offices are located in Berlin, Wuppertal and
Munich.

Technologies
 Organization Structure

Case Presentation
B M W

C o m p a n y C o d e
B M 0 1

S a le s O r g a n is a t io n Plant
B M S 1
PL01
D is t r ib u t io n C h a n Dn ies l t r i b u t i o n C h a n n e l
R 1 W 1

D iv . D iv . D iv . D iv . D iv . D iv .
D 1 D 2 D 3 D 1 D 2 D 3

Technologies
 Organization Structure

Case Presentation
Organization Data

• Company Code - BM01

• Sales Organization - BMS1
• Distribution Channel - R1
• Division - D1
• Plant - PL01
• Storage Location - SL01
• Shipping Point - PREG

Technologies
 Master Data
• Master Data forms the basis for most of the transactions.
• It contains records that remain in the database over an
extended period of time
• It is centrally stored (shared across application modules)
and processed to eliminate data redundancy

M a s t e r D a t a
e g . C u s t o m e r M a s t e r

A c c o u n t i n g G D e a n t ae r a l D a S t a a l e s D a t a
( u n iq u e t o ( c o m pm a o n n y ) a ( c u r no i s q s u ce l i t e o n st ) a l e

Technologies
 Overview
MM Materials Management
SALES PP Production Planning
SUPPORT
PM Plant Maintenance
CO
Controlling
FI
SALES Financial Accounting
PS
MASTER Project System
DATA
MM
Materials Management
SHIPPING
FI Financial Accounting

FI
Financial Accounting
BILLING
CO Controlling

DATA
WAREHOUSE

Technologies
 Origins of Data in
Sales Documents
• When you create sales order the system proposes
most of the data from master records.
• This in case of sales order could come from Customer
Master Data, Material Master Data.
• It is recommended to store as much of data as
possible to save great deal of time & effort.

Technologies
 Partner Functions
Vendor Sold-to-Party

Employee Resp. Partner Function Ship-to-Party

Carrier Payer
• A company deals with different persons during business
transactions.
• A customer orders goods from a company. A forwarding
agent might deliver goods to the customer. An employee
within the company processes the business transactions.
• All roles a natural or legal person can assume are
represented by business partners in the SAP R/3 System.

Technologies
 Business Partners

• You can maintain partners/customers (such as sold-

to-parties, ship-to-parties, payers, bill-to-parties) in
the customer master and in sales & distribution
documents. Each partner is identified by a partner
function.
• Data on Vendors maintained in the vendor master.
• E.g. of Partner functions are Sold-to-Party (AG), Bill-
to-Party (RE), Payer (RG), Ship-to-Party (WE),
Contact Person, Employee Responsible, Forwarding
Agent.

Technologies
 Customer Master

• It includes all data necessary for processing orders,

deliveries, invoices, and customer payments.
• Customer master information is shared between
accounting and sales department (e.g. customer
number)
• The Customer master groups data into
categories:general data, company code data and
sales & distribution data.
– General Data could be Customer number.
– Company code Data relevant for accounting(e.g.
Reconciliation account)
– Sales Data relevant specific for sales (e.g. shipping
information)

Technologies
 Customer Master - Account
Groups

• An account group is a classification in the customer

master record. The account group specifies
– which entries in the master record are required or
optional
– the number range for the customer’s account number
– whether the number is assigned by the user or the
system (external, internal number assignment)
– whether it is a one time account
– which output categories apply

Technologies
 Customer Master - Selecting
Fields
• You can find general data as well as data specific to
sales & distribution and company code in the customer
master record
• Using field selection you can define for each account
group whether fields are optional or required. You can
suppress any fields which You do not require.

Technologies
 Customer Master

Selecting Fields for Partner Functions

• Account groups have been predefined in the SAP
standard system for the following partner functions
– sold-to-party (Account group 0001)
– ship-to-party (Account group 0002)
– payer (Account group 0003)
– bill-to-party (Account group 0004)
• These account groups contain a specific selection of
fields for each partner function

Technologies
 One Time Customers
• Customers who only enter into a business transaction
with you once
• For one-time customers a collective master records are
created.
• Account group CPD is automatically proposed. This
ensures that the screens from different areas (sold-to
party, ship-to party, bill-to party, payer) relevant for
one-time customers, are accessed.
• You will use the customer number of your collective
master record when processing the sales order.
• Only in the sales order itself will you enter the address
and all other data not given in the master record.

Technologies
 Customer Master

Additional influences on Field selection

• In addition to the account group the transaction can
also influence which fields are displayed in the
customer master record.
• You can use transactions to process a customer
master record:
– from the sales view/ the accounting view/ centrally
from both the views.

Technologies
 Customer Hierarchies
• You can create flexible hierarchies to reflect the
structure of the customer organizations. This is useful
when your customer base includes multi-level buying
groups, cooperatives or chains of retail outlets. You can
use hierarchies to reflect the structure of these groups.
• Example of a Customer Hierarchy
– The following hierarchy consists of five nodes that are
defined on three levels. In the example, customers are
assigned to two of the nodes - Smith South and Smith
Northwest.
– Customer Hierarchies are Flexible
– When you assign a new customer to an existing hierarchy,
you ensure that the customer automatically inherits, for
example, all pricing agreements that apply to this
hierarchy node.
Technologies
 Customer Hierarchies

Technologies
 Operations on
Customer Master Records
• Customer Master Record Creation using Reference
– If you enter only the customer number in the reference
section, the system will copy only the general data into the
new customer master record. If you also enter data on the
sales area, the sales and distribution data will also be
copied.
– Deleting a Customer Master Record.
– Mark a customer master record for deletion if, for e.g. you
no longer maintain business relationships with the
customer.
• Blocking a Customer Master Record
– Blocking is done if, for example, when you want to
temporarily stop business relations with a customer.
• Displaying Changes in Customer Master Record
– You can display all changes which have been made in a
customer master record in the change mode.
Technologies
 Material Master

• The material master contains all data required to

define and manage material.
• Products and services are combined in the SAP
R/3 System under the term material.
• It integrates data from engineering, manufacturing,
sales and distribution, purchasing, accounting, and
other departments.
• It is one of the basic sources of data for sales
processing. The material master record is
accessed, for example, in the inquiry, in the
quotation and in the sales order. Data in the
material master record is also of great importance
for shipping and billing.
Technologies
 Material Type
• Material types in the SAP standard version are, for
example, raw materials, trading goods, semi-
finished products, finished products, or services
• Material type is used, among other things, to group
field selection functions for a material, or to define
the screen sequence, the type of number
assignment and number ranges during material
master record maintenance. Depending on the
material type, company areas maintain different
data screens. This screen selection applying
specifically to an application is called a "view".
• The following are examples of possible material
types in the SAP standard version:
– Trading goods , Non-stock Material,
Services,Packaging material
Technologies
 Industry Sector
• Indicates the assignment of a material to a certain branch of
industry.
• It also determines, for example, the selection of data fields
on screens or the screen sequence.
• The subdivision into different industry sectors is necessary
because, for example, a material in the chemical industry,
such as a chemical solution, differs from a material in
mechanical engineering in its basic characteristics.
• Industry Sectors in the Standard Version of the SAP R/3
System:
– A Plant engineering and construction
– C Chemical
– M Mechanical engineering
– PPharmaceutical

Technologies
 Material Master Views

• The general data (Material number, description, units

of measure,technical data) is valid for all clients in
the System.
• The sales specific data can be entered dependant on
sales organization and distribution channel.
• Which views of a material master are possible is
determined on the basis of material type.
• Users can specify which views they obtain during
material master record maintenance.

Technologies
 Services

• Services are represented and managed in the SAP

System as materials having material type DIEN.
• Non-transportable and Non-stockable.
• Typical services are commercial services, transport
services, bank and insurance services, as well as
services provided by the the education sectors.
• Cannot be stored
• Material master record does not contain inventory
management data. Also no fields for gross weight,
net weight or unit of weight are included in the
basic data for a service.

Technologies
 Product Hierarchies
0 0 0 2
D r i n k s

0 0 0 0 2 0 0 0 0 1 0 0 0 0 2 0 0 0 0 2
D r i n k s A l c o h o l i c D r i n k s N o n A l c o h o l i c

0 0 0 0 2 0 0 0 0 01 00 00 00 20 00 00 00 01 01 00 00 00 20 00 00 00 02 02 0 0 00 00 2 0 00 0 0 00 0 1 2 0 0 0 0
G i n W i n e C o k e P e p s i

• You can group materials using product hierarchies.

Used for pricing & analysis.
• Product Hierarchies can be defined up to 18
characters & 3 levels
­ characters 1 to 5 make up the first level.
­ characters 6 to10 make up the second level.
­ characters 11 to 18 make up the third level.
• Number of levels and the number of positions per
level. A maximum of 9 levels is available.

Technologies
 Classification

• With the classification system, objects can be

described using characteristics and similar objects
can be grouped together in classes according to the
criteria chosen by user.
• The classification system enables you to search for
objects with certain characteristics.
• The figure below is an overview of the functions of
the classification system.

Technologies
 Classification
C h a r. m a in t e n a n c e O b je c t A C M E T R U C K
- W e ig h t - A re a o f u s e L e n g th - 1 1 M e te rs
- L e n g th - P r ic e M a n u fa c tu re r - A C M E
- C o lo r - V o lu m e R e g is t r a t io n - 0 5 /0 5 /1 9 9 3
- H e ig h t - H e a d h e ig h t F r e ig h t v o lu m e - 54 sqm
- W id t h - T h r e a d le n g t h P ow er - 200 kW
- M a n u fa c tu re r - A ge A re a o f u s e - in t e r n a t io n a l
- R e g is t r a t io n - and so on

C h a r a c te r is tic s A ttr ib u te s

C la s s m a in t e n a n c e C la s s if ic a t io n F in d in g o b je c t s
A llo c a tio n F in d in g a n in itia l
C la s s T R U C K O b je c t A C M E T R U C K c la s s fo r th e
C la s s T r u c k s e a rc h
- L e n g th V a lu e a s s ig n m e n t
- M a n u fa c tu re r
- R e g is t r a t io n L e n g th - 1 1 M e te rs
- A C M E F in d in g
- F r e ig h t v o lu m e M a n u fa c tu re r o b je c ts in th e
- P ow er R e g is t r a t io n - 0 3 .0 1 .1 9 9 4 c la s s
- T ru c k N o . F r e ig h t v o l. - 54 m 3
P ow er - 200 kW
T ru c k N o . _

F u n c t io n s C la s s if ic a t io n S y s t e m

Technologies
 Exercises

• Creating a Master Record for a Sold-to Party.

• Create a Ship-to-party
• Modify the Sold-to-Party to add the New Partner
function i.e. the above Ship-to-Party.
• Creating a Material Master Record for a Trading
Good.
• Displaying Changes to Material Master & Customer
Master in Sales and Distribution Data

Technologies
 SALES

• Sales-related business transactions are recorded in

the system as sales documents. There are, broadly
speaking, four different groupings of sales
documents:
• Sales queries, such as inquiries and quotations
– Sales orders
– Outline agreements, such as contracts and scheduling
agreements
– Customer problems and complaints, such as free of
charge deliveries and credit memo requests
• If your particular business processes require it, you
can process deliveries and billing documents directly
from a sales document.

Technologies
 Documents in SD Processing
S a le s In q u iry

Q u o t a t io n C o n tra c t

F re e o f S ubsequent S c h e d u lin g
c h a rg e d e liv e r y f r e e O rd e r R e tu rn s
d e liv e r y o f c h a rg e a g re e m e n t

M a t e r ia ls
S h ip p in g m anage-
D e liv e r y m ent

B i llin g

D e b it m e m o I n v o ic e C r e d it m e m o

F in a n c ia l A c c o u n t in g

Technologies
 SD Processing
Sales Support

MATERIALS MANAGEMENT
Sales
activity
SALES INFORMATION

Sales Inquiry

Quotation Contract
SYSTEM

Delivery Subsequent
free of delivery free Sales Returns
Scheduling
charge of charge order agreement

Shipping
Delivery

Billing
Debit memo Invoice Credit memo

FINANCIAL ACCOUNTING

Technologies
 Examples of
Sales Document Types
• Pre-Sales Phase
– Inquiry (IN), Quotation (QT), Free of Charge Delivery
(FD)
• Sales Orders
– Standard Order (OR), Cash Sale (BV), Rush Order (SO)
– Consignment Issue (KE)
• Outline Agreements
– Quantity Contract (QM), Rental Contract (MV)
– Scheduling Agreement (LZ)
• Complaints
– Credit Memo Request (CR), Debit Memo Request (DR),
Return (RE)

Technologies
 Structure of Sales Documents

• A Sales document can contain any

number of items
H eader
• Schedule lines are sub-divisions as
required for each item with respect to
Ite m 1 date & quantity.

S c h e d u le lin e 1
• Business Data valid for the whole
sales document is located in the
document header
Ite m 2
• Each item has its own business data
e.g. Inco-terms etc.
S c h e d u le lin e 1
• Data for shipping and procurement is
S c h e d u le lin e 2 stored in schedule lines.

Technologies
 Controlling by
Sales Document Type
• At sales document level, for example, you can specify
whether a credit check takes place for a particular type of
document.
• From which number range should the document number for
internal or external number assignment come
• You can specify whether a document is automatically
blocked and must first be reviewed before it can be
processed further (a request for a credit memo, for
example).
• Can an incomplete document be saved or must all data be
complete
• Which fields are relevant for the incompletion log?
• Can an incomplete document be saved or must all data be
complete
Technologies
 Item Categories
• Item Categories control the individual items in sales
documents
• For example, the functions of a standard item are
completely different from those of a free-of-charge
item or a text item
• The different item categories control
– whether pricing should be carried out for an item
– whether an item is to be invoiced
– whether an item refers to a material or is a text item
– which data is required for an item
• By using an item category, the system can process a
material differently in each sales document type.
• For example, you can define a different control for a
material in an inquiry and a material in an order.
Technologies
 Selection of
Item Categories
IN AFN AFNN
Standard Free of
QT AGN AGNN
Item Charge Item
OR TAN TANN

AFX AFTX
Non-Stock
AGX AGTX Text Item
Item
TAX TATX

Technologies
 Schedule Line Categories

• Schedule line control the individual schedule lines in

sales documents.
• The different schedule line categories control
– whether the schedule line passes on a sales
requirement.
– Whether an availability check is carried out for the
schedule line.
– Whether the schedule line is relevant for delivery

Technologies
 Number Assignment

• Each document is identified by a separate document

number.
• The number is unique within a client and does not depend
on company code, sales organization, or on the fiscal year.
• Number Range
– defined for the Document type and must not have been
assigned before.
– This number can be alphanumeric, if permitted in the selected
number range.
– You can have internal and external number range. The
numbers specified in this range should be different and should
not overlap.
– Different document types can be assigned different number
ranges

Technologies
 Number Assignment

• Number assignment can be carried out internally or

externally as follows
– You can specify a number externally. The number must
come from the number range.
– If you do not want to specify a number externally, the
system assigns a sequential number internally.
– The number comes from the internal number range
defined for the document type.

Technologies
 Incompletion
• Incompletion Logs
– Missing data is listed in a log.
– For different sales document types, you can decide which
fields the system is to take into account when checking for
missing data.
– Incomplete Sales Documents
– For each sales document type you can control whether
incomplete sales documents can be saved or whether they
must be first fully maintained.
– You can control which incomplete data must be maintained
before the document can be processed further.
• Lists of Incomplete Orders
– A list of incomplete orders is generated for each responsible
for maintaining those orders.
– Incomplete orders can be called from this list and maintained.

Technologies
 Incompletion
• Incompletion Logs - Areas
– Sometimes data missing in the sales document can
influence the processing of subsequent functions.
– In Such a case distinction is made between the following
areas.
• Generally incomplete
– The sales document cannot be copied
• Incomplete for delivery
– Delivery cannot be carried out.
• Incomplete for billing
– Billing cannot be carried out
• Incomplete for pricing
– Order confirmation & billing cannot be carried out.

Technologies
 Kinds of Data in
Sales Documents

• The data in the sales documents is recorded on

different screens. These screens can be divided as
follows:
– Overview screens including header, item, and schedule
line data
– Detail screens:
• screens at the header level containing general data
• screens at the item level containing specific item
data

Technologies
 Overview Screens in
Sales Documents

– Customer-material information
• In addition to your own material number, you can find
the number that the customer uses for every item.
• When you create an order for a material, you can use
this screen to enter the number the customer uses for
this material instead of your own material number.
• Shipping
• Shipping data such as the loading date, the shipping
point, and the tolerances for under-delivery or over-
delivery

Technologies
 Overview Screens in
Sales Documents
– Billing
• Here you see the net values of the items, the terms of
payment, and Inco-terms for every item.
– Reason for rejection
• Here you can find the reason for rejecting individual
items. For example, a customer may reject an item
because of late delivery.
• Status
• Information on the progress of the business transaction
and the completeness of the data.

Technologies
 Details Screens in
Sales Documents

– Pricing elements
• (prices, discounts, surcharges) used for pricing at the
header and item level.
– Purchase order data
• Data from the point of view of the orderer, including, for
example, the purchase order number of the customer,
the purchase order date, and information about the
orderer.
• Status
• Information on the progress of the business transaction
and the completeness of the data. The status of the
entire document, which is displayed at the header level,
results from the status of the items.

Technologies
 Alternative Items
• To enter alternative items in a quotation, proceed as
follows:
– 1. Use the double-line entry screen of the quotation. If you
know which material the customer is most likely to choose,
enter it as a main item in the quotation.
– 2. Enter the following information for the alternative item
directly under the main item it is meant to replace.
• In the Material field, enter the material number
• In the Alternative item field (AltItm), enter the item
number of the material for which the item serves as an
alternative (the material you entered in step 1)
• If there is more than one alternative for an item, repeat
the process and enter the same item number

Technologies
 Rejection & Deletion
of Items
• In case you want to reject one or more items you can
enter a reason for rejection for such items. These
items will not be copied into the subsequent
document.

• In case item(s) are to be deleted mark the item(s) and

choose Edit -> Delete. These items will no longer
appear in the document

Technologies
 Material Determination
• Material determination enables the automatic
substitution of materials in sales documents during
sales order processing.
• For example, during the course of a sales promotion,
the system can, during sales order entry,
automatically substitutes a material that has
promotional packaging.
• Using material determination, the system substitutes
M a te r ia l d e te r m in a tio n S a le s o r d e r
the material only during the specified period.
M a te r ia l S u b s titu te
e n te re d m a te r ia l
Ite m M a t e ria l
4711 M 1
10 4711
M 1

E x a m p le : P ro m o t io n a l p ro d u c t

Technologies
 Material
Listing & Exclusion
• Material listing and exclusion lets you control which
materials specific customers may or may not buy.
• For example, if you create a listing of products for an
individual customer, the customer may only order
products on the list.
• If you create an order for this customer, a check is
carried out during item entry to make sure that the
material entered is on the list.
• You can also specify material exclusion for a
particular customer. The customer may not order
excluded materials from you.

Technologies
 Sub-items
• You can assign an item to a higher level item. For example
you want to grant a customer a rebate in kind for ordering a
certain amount of material.
• Example: Item 1: M1 100 PC 1000Rs
Item 2: M2 10 PC free of
charge
• The customer gets 10 free pieces for ordering 100 PC. In
order to document this. Item 2 is assigned to higher-level
item 1.
• By making such an assignment the quantity in the low level
item gets tagged to the high level item and any change in
quantity for the high level item gets proportionally reflected
in the low level item.
• You can also fix the quantity for the low level item by Item
-> Structure->Components and checking the Fix indicator for
this item.
Technologies
 Document Flow

Quotation Order Delivery Invoice

Returns Credit
Returns
Delivery for Returns

• A business process is made up of the sequence of

individual
• Document flows are updated at the level of the overall
document and for individual items.
• You can branch to the display of a document directly
from the document flow

Technologies
 Matchcodes & Lists
• MATCHCODES
– All fields used as a search terms to access a table are
contained in a match code object.
– Several matchcode ID’s can exist for a matchcode
object. The match code ID determines which fields are
used for setting up a search item
• LISTS
– There is a list function for every sales and distribution
document. You can use list function to display sales
documents for particular master data e.g. for a certain
sold-to-party.
– You can analyze incomplete documents, documents
blocked for delivery, back orders and documents with a
particular status.

Technologies
 Exercises

• Create an Order with the sold-to-party and the trading

good that you have created earlier.
• Save the order and complete the document.
• Create orders for the same material three times
– Delete the first one
– Reject the second
– Change the ship-to-party of the third.

Technologies