SAP CUSTOMISATION PROCEDURE – SD MODULE

Sales & Distribution – 4 important aspects

1. Sales Area
2. Customer
3. Material
4. Price

Procedure 1 - Creation of Enterprise Structure

To create an enterprise structure we need to define the various aspects as

below,

• Company
• A unique Company Code,
• Plant (Storage Location)
• A Sales Organisation – From where actual sale takes place.
• Distribution Channel – Intermediary, Direct Sales etc.
• A Division – A division may be single or many.
• Purchase Organisation
• Warhouse etc.

Step 1 – Type SPRO in the window and press Enter Key

Step 2 – Click on ICON SAP Reference IMG

Step 3 – Cliick on Enterprise Structure

Step 4 – Click on Definition

Step 5 – click on Financial Accounting

Step 6 – Click on Define Company

Step 7 – Click on Icon “ New Entries”

Step 8- It will display screen as below

Step 9 – Type Unique Company Name in Window Company (Preferably in Alfa

numeric) eg. AP1

Step 10 – Fill the remain fields in the window,

Step 11 – Save the data and go back to the previous window

Step 12 – Click on “Edit, Copy, Delete Check Company Code”

Normally the company code data is prepared in the early stage by
defining the data but to create the dummy enterprise structure we are
copying the data from IMG data.
Step 13 – Click on Icon “ Copy Org. Object”,

It will start the copying data, wait till 100 % is been completed as below.
Step 14 : Type ‘1000’ in window “From Company Code”

Step 15: Type Your unique Company Code (may be 1200, SGN etc.) in
window “To Company Code” to copy the data from IDES AG.
- Click “Yes” on the next window for copying the GL Accounts

- Again Click “Yes” on next window

- Type Currency in the next window comes (For India it is INR)

- Click yes on next window

Cont….
 - It will start copying the actual data as below

- Click Yes on customizing request.

- Click yes on any next window giving message

- Then click on go back icon

Step 16 – It will display window as under, click on Edit Company Code data

Step 17 – Goto Your Company code data & change the data for your
company and save the data.
II. Defining Plant – In short Plant is Storage Location from where actual
Production and movement of material takes place.

Step – 1 – Goto Enterprise Structure

Step – 2 – Click on Definition

Step – 3 – Click on Logistic General

Step – 4 – Click on Define, Copy, Delete, and Check Plant

Step – 5 – Click on Define Plant

Step – 6 - Click on “New Entries”.

Step – 7 – Fill the details and address as shown in below windows.

III. Define Division – (Subdivision in Sales Organisation)

Step - 8 – Go back to Logistic General

Step - 9 – Click on Define, Copy, delete, check division.

Step – 10 – Click on Define Division

Step – 11 – Click on “New Entries”.

Step – 12 – Define Division as given below.

IV. Define Sales Organisation (From where Sales Takes Place)

Step – 13 – Go back to Enterprise Structure

Step – 14 – Click on Sales and Distribution

Step – 15 – Click on “Define, Copy… Sales Organisation”

Step – 16 – Click on “Define Sales Organisation” on next window.

Step – 17 – Click on “New Entries”

Step – 18 – Fill the data in next window as below,

Step – 19 – Fill the address details

V. Define Distribution Channel – (Media of Sales)

Step – 1 - Go back to “Sales & Distribution”

Step - 2 – Click on “Define, Copy...Check Distribution Channel”

Step – 3 – Click on “Define Distribution Channel”

Step – 4 – Click on “New Entries”

Step – 5 – Fill the details as below,

V. Define Sales Office – (Region Offices)

Step I – Go back to “Sales & Distribution”

Step II – Click on “Maintain Sales office”

Step III – Click on “New Entries”

Step IV – Fill the Details as below,
V. Define Sales Group – (A group operated within sales Offices)

Step - 1 – Go back to “Sales & Distribution”

Step –2 – Click on “Maintain Sales Group”

Step – 3 – Click on New Entries

Step – 4 – Fill the Details as below

…..next
V. Define Storage Location (The exact location for storage of material
within plant)

Step I – Goto Enterprise Structure

Step II – Goto Material Management

Step III – Click on “Maintain Storage Location”

Step IV – Enter Plant of storage location in window as given in below window,

Step V – Click on “New Entries”

Step - VI Fill the Details as below,
Define Customer:

Customer Data is maintained from 3 Views

 XD01 – All Views – Sales & Finanace
 VD01 - Creation of Customer Data from Sales point of View.
 FD01 - Creation of Customer Data from Finance point of View.

(01 - To Define the data, 02 – To change the Data, 03 – To view the data)

XD 01 – Maintain the Customer From all view

Step 1 – Type XD01 in window

Step 2 – Fill all the details given in window below,

Step 3: Maintain General Data

Fill the details as given in below sequence

- Address Details

Control Data –

Payment Transactions –
Marketing Details –

Unloading Point –

Export Data –

Contact Persons –

Step 4 – Maintain Company Code Data

Account Management –
 Reconciliation Account – Reconciliation Account in General Ledger
The reconciliation account in G/L accounting is the account which is updated parallel to the
subledger account for normal postings (for example, invoice or payment).
For special postings (for example, down payment or bill of exchange), this account is replaced
by another account (for example, 'down payments received' instead of 'receivables').
The replacement takes place due to the special G/L indicator which you must specify for these
types of postings

- 140000 – Trades Receivable Domestic

Payment Transactions –

Terms of
Payment -

Correspondence Details –

Insurance Details –

Step 5 – Maintain Sales Area Data

Sales Details –

Shipping Details –

Billing Document Details –

Partner Function Details –
Define Material Master – MM01

Material Master is a master containing all relative data w.r.t. the particular
material.

Step 1 – Type mm01 in SAP Window & press Enter.

Step 2 – Fill all the data in below given window. (From SD point of view It is
very necessary to Give Material Type as Finished product, as Sales
Department is concern with only “FINISHED PRODUCT”. (2nd mentioned in
the list) Other types as re semi finished product etc. ,which are mostly
concern with MM peaople.
 Material –
Industry Sector –
Material Type – Finished

Step 3 – Press Key ‘Select view’ as given in window,

Step 4 – Select the following 13 views, which are concern with SD point of
view,
Step 5 – Press “Organisation Levels” in above window (Marked by red).

Step 6 - Fill the following details in the window appears,

Step – 7 - Fill the concern details in 13 views earlier select sequentially as
below, (Highlighted in Red window)
 Finished Product

Step 8 – Save the Material Master

PRICING:

Step 1 - Click on SAP reference IMG

Step 2 – Go to Sales & Distribution

Step 3 - Click on Basic Function

Step 4 – Click on Pricing

Step 5 – Click on Pricing Control

Create Condition Table

Step 1 – Click on ‘Define Condition Table’ – (V/03)

Step 2 – Give a Number in the blank window Table – (Between 501-999)

The prior tables are already made in SAP.

Step 3 – Select the fields from ‘field catalogue’ into ‘Selected Column’. These
are the fields, which are controlling the ‘Price’.

These fields are normally controlled in,

- Sales Area (Sales Organisation, Distribution Channel, Division)

- Customer (The first customer appears in the list)
- Material

But it may also be depend on Order type, Plant etc. (Please refer below
figure)
Step 4 – Click on icon ‘Generate’ marked by circle in above figure.

Step 5 – Click on icon ‘Local Object’ on the next window appear.

Define Access Sequence – V/07

You define access sequences in this IMG step.

The access sequence is a search strategy which the SAP System uses to
search for condition records valid for a condition type.

For example, you can define for a price that the SAP System first searches
for a customer-specific price and then for a price list price.

If you define your own access sequences, the key should start with the letter
Z since SAP reserves this letter for the standard system.

Step 1 – Click on Define Access Sequence (V/07)

Step 2 – Click on New Entries

Step 3 – Fill the Details in the next window appears,

AcSq – It should Start with Letter ‘Z’ and press enter & give the
description to acess sequence.

Step 4 – Select the band as shown below and double click on ‘Access’.
Step 5 - Click on New Entries

Step 6 – Fill the Following details and press enter,

- Acc. No. – in Numeric 10,20 or any

- Condition Table No. – Your condition Table No.

Step 7 – Select the band and click on icon ‘fields’ and press enter as in below
figure

Step 8 – It will show two green buttons glowing that mean your access
sequence has been created. Then save the access sequence.
Define condition Type – V/ 06

You define condition types in this step.

Price elements are represented in the SAP system by condition types. Price
elements can be, for example, prices, surcharges, discounts, taxes or,
freight, and are stored in the system in condition records.

You can, for example, define whether a discount is calculated as a percentage

or a fixed amount using the condition type.

You specify an access sequence in every condition type. Thus, you define
which fields the SAP system checks when searching for a valid condition
record.

(The detailed procedure & definition of each group is given in annexure on

next page)

For procedural part we will copy the three basic condition Types i.e. Price
(PR00), Freight (KF00), Discount (K007).

Step 1 – Goto ‘Maintain condition Type’ – V/06

Step 2 – Select Condition Type ‘PR00’ for price. (# For Creating new
condition type, click on New Entries)

Step 3 – Select the Band & Press icon ‘Copy as” on upper window.

Step 4 – Change the condition type from “PR00” to “Z$$$$” & Give your
access sequence.

Step 5 – Press ‘enter’ key & save the data

Step 6 – Repeat the above procedure for Discount (K007) & Freight (KF00)

(Condition Type Documentation is given in separate Annexure)

Define & Assign Pricing Procedure: (V/08) –

You define the pricing procedures in this step. In addition, you assign the
pricing procedures to the transactions by defining the following
dependencies:

In the pricing procedure, you define which condition types should be taken
into account and in which sequence. During pricing, the SAP System
automatically determines which pricing procedure is valid for a business
transaction and it takes the condition types contained in it into account one
after the other.

Step 1 – Click on Define & Assign Pricing Procedure (V/08)

Step 2 – Click on New Entries

Step 3 – Fill the following details,

Procedure – Give the name start with ‘Z’ & press enter.

Step 4 – Select the band and double click on control data.

Step 5 – Click on New Entries.

Step 6 – Enter all the condition types you have selected (as shown below)
preferably with a step of 10 as you can add he new condition types in
between after defining the pricing procedure and condition record. Select the
fields Manual or Mandatory as per your requirement.
Step 7 – Sum-up the all condition types by adding in ‘From’ to ‘To’ column.
(Condition type step first step and last step to be entering in this column).

Step 8 – Save the Data.

Pricing Procedure Determination – (OVKK)

Pricing procedure determination is assignment of Pricing Procedure to Sales

area.

Step 1 - Click on New Entries

Step 2 - Fill the data as given in below dig. & Save the data.

Standard
Define Condition Record – VK11

Step 1 – Define the condition records for your condition types.

Step 2 – In basic create condition records for condition types- Zpro, zdis &
zfre and fill the details as shown below & then save the data.
Define Business Area –

In this section you create business areas. A business area is an

organizational unit within accounting that represents a separate area of
operations or responsibilities in a business organization.

When defining a business area, you enter a four-character alphanumeric key

and the name of the business area.

In a client, you can set up several business areas to which the system can
assign the postings made in all company codes defined in this client. To
ensure consistency in document entry, you should give business areas the
same name in all company codes.

You make all other specifications for your business areas in the Financial
Accounting Implementation Guide.

# You can define the business are during defining the enterprise
structure also. I am defining the business area at this step because
my sales order was not processed due to non defining the business
are for my sales area.

Step 1 – Go to SAP Reference IMG.

Step 2 – Click on Enterprise structure.

Step 3 – Click on Definition.

Step 4 – Go to ‘Financial Accounting

Step 5 – Click on ‘Define Business area’.

Step 6 - Click on New Entries

Step 7 – Define Business Area and Description on the next screen

appears (Business area could be any 4 character name)

Step 8 – Save the data

Assignment of Business Area:

Define Rules by Sales Area

Step 1 – click on Define Rules by Sales Area

Step 2 – Define Rule for your Sales Area

Step 3 – Save the data

Assign Business Area to Plant and division

Step 1 – Click on business Area to Plant and Division

Step 2 – Click on New entries

Step 3 – Fill the details Plant, Division and Business Area

Step 4 – Save the Data

Assign Business Area by Sales Area

Step 1 – Click on ‘Assign Business Area by Sales Area’

Step 2 – Assign Business area to Sales Area.

Step 3 – Save the data

VARIOUS PRICING FUNDAMENTALS:

- Pricing Supplement

Settings: In Condition Type: You have to identify your Pricing Procedure in

Condition Type to make Condition Supplement Applicable
Condition supplement is normally given to basic condition type like Price.

Use : While Creating Number of Condition Records, it very time consuming to

create condition records for each condition type. With the help of Condition
supplement we can attach the condition relevant to basic condition type in
single operation

Procedure

Step 1 – Go to Condition record (VK11)

Step 2 – Enter the details such as Sales Organisation, Distribution Channel,

Division, and Customer etc.

Step 3 – Enter your Material & Basic condition details (price) at item level
and press enter.
Step 4 – Select the Band of Material & Click on ‘Goto” on upper bar & select
the Condition Supplement

Step 5 – Enter other conditions and then save the data.

- Scaling

Settings: In Condition Type you have to select your,

1. scaling formulae (Scale bais), whether to be based on quantity or Value.
For eg. Discount whether to be given on quantity ordered or Value of the
order.

2. Check Value: Whether on Ascending or Descending –

Descending is a straightforward equation like,

5 – 10 Quantity – 5 % Discount
10 – 15 Quantity – 10 % Discount
15 – 20 Quantity – 20 % Discount

Ascending is a exactly opposite equation like,

5 – 10 Quantity – 15 % Discount
10 – 15 Quantity – 10 % Discount
15 – 20 Quantity – 5 % Discount

Use: Scaling is normally used to attract the customer for bulk purchases.
(Ascending function may be used when you want customer purchase the you
items every month rather than ordering for the year)
Procedure.
Procedure:

Step 1 – Go to Condition Record

Step 2 – Select band of your condition Type & Goto Scale

Step 3 –Select your scale basis and save the data. For eg. As below Up to 5
quantity material value is 60,000, 5 to 10 qty. material value is 59,500 and
for qty. above 10 value is Rs. 59,000.
Condition Exclusion:

Condition Exclusion is the comparison between condition types and selection

of the best suited or least suited condition type between various condition
types.

This condition types could be compared by various ways.

These ways are,

• Selection of the most (or least) favorable condition type within a condition
exclusion group.

• Selection of the most (or least) favorable condition of a condition type, if

more valid condition records exist (such as selection from different
condition records of condition type PR00)

• Selection of most (or least) favorable of the two condition exclusion

groups (in this case, all condition types of two groups are cumulated and
the totals are compared)

• An exclusion procedure in which if a condition type in the first group exist

in the document, all condition types in the second group are set to
inactive.

Customisation Procedure :

Step 1 : Click on SAP Reference IMG

Step 2 : Click on Sales & Distribution

Step 3 : Click on Basic Function

Sep 4 : Click on Pricing

Step 5 : Click on Condition Exclusion

Step 6 : Click on Condition Exclusion For Groups Of Conditions

Step 7 : It will display the following window,

Step 8 : First Click on ‘Define Condition Exclusion Groups’

Step 9 : Click on New Entries

Step 10 : Give any name to your Exclusion group starting with ‘Z’ & Save the
data
Step 11: Click on the second option “Assign condition types to the exclusion
groups’

Step 12: Click on New Entries

Step 13: Enter the Exclusion Group and assign the condition type to the
same and save the data.
Step 14: Click on the third option ‘Maintain condition exclusion for pricing
procedures’

Step 15: Select your pricing procedure (band) and double click on exclusion.

Step 16: Enter the details for CPR and exclusion Group and save the data.

### CPR could be following condition,

If option B i.e. Best condition within the condition type is chosen then delete
one of the condition types from the assign exclusion group.
Please do also remember to keep the exclusive indicator in Assesses
sequence of particular condition type blank; otherwise it will select the first
condition type found in the billing.

Similarly other conditions could be selected depend on the requirement.

Condition Update:

Condition Update is normally used for limiting the Value of Condition Type.

The use of Condition Update is prominently done for limiting the Maximum
discount value including all previous transactions.

Settings: In Condition Type: You have to tick mark on the condition update
setting in master data of condition type.

Procedure:

Step 1 – Go to transaction ‘Create Condition Record’ i.e VK11 and VK 12

Step 2 – Type your condition type and press enter

Step 3 – Select the band of tour transaction and click on ‘GOTO’ icon on
upper bar and select ‘Additional Data’
Step 4 – Select the Maximum Condition Value for your condition record in the
column Limit for pricing and save the data.

.
Shipping Point and its Determination:

Shipping points are independent organizational units that are linked to a

plant and represent the point of departure or receipt of material. A plant may
have many shipping points. A delivery is created from one shipping point
only.

Setting: The following settings w.r.t shipping has to be incorporated in the

masters for Creation of delivery.

Customer Master :

Shipping Details – Delivery Priority, Shipping conditions, Delivering Plant

…………….KTO
Material Master:

Loading Groups: Crane, forklift or manual

Defining Shipping Point –

Step 1 – Go to IMG

Step 2 – Enterprise Structure

Step 3 – Definition

Step 5 – Click on Logistic Execution

Step 4 – Click on ‘Define, copy, delete, check shipping point’

Step 5 – Click on ‘Define Shipping Point’

Step 6 – Click on New Entries

Step 7 – Define the Shipping Point by filling the details as below

- Assign Shipping Point to Plant

Step 1 – Go to Enterprise Structure

Step 2 – Click on Logistic Execution

Step 3 – Click on ‘Assign Shipping point to Plant’

Step 4 – Proceed with Assigning Shipping Point to Plant

Step 5 – Save the Data

- Shipping Point Determination (OVL2)

Step 1 – Goto IMG

Step 2 – Click on logistic Execution

Step 3 – Click on Shipping

Step 4 – Click on Basic Shipping functions

Step 5 – Click on ‘Shipping Point and Goods Receiving Point Determination’

Step 6 – Click on ‘Assign Shipping Points’

Step 7 – Click on New Entries

Step 8 – Enter the details in sequence given on next page

 Shipping Point

Plant
Loading Group – Crane Manual Etc.

Shipping Condition
Updating of Stock in the Plant: MB1C

Step 1 – Please enter the Transaction code MB1C

Step 2 – Fill the following Details such as,

a. Movement Type –
b. Enter the Plant -
c. Storage Location –

Step 3 – Enter the Material and Quantity to be transferred and save the data,
Creation of Delivery: After preparation of order one need to deliver this
order for the billing, through a predetermined Shipping point for the plant.

The picking activity is conformed at delivery Stage. Picking is the actual

quality delivered in the billing document the Order Quantity and Picking
quantity may be differed considering Actual availability of material.

You can deliver the material at order stage as given below,

Or

You can make a delivery by entering transaction Code (Vl01N)

Step 1 – Enter the Shipping Point, Selection Date and Order No., it will
display the screen as below,
Step 2 – Enter the picking quantity in column picking and press icon PGI.

Step 3 – It will display the saved document no.,

Collective Processing of Delivery and Collecting Delivery-

When you creates order you can create the delivery individually or you can
process the delivery collectively or you can make a collective delivery

Collective Delivery (VL04)

one customers – N’ order – one Delivery

Step 1 – Enter VL04 in the winow

Step 2 – Click ‘Y’ on next window appears.

Step 3 – Enter the relevant data in next window appear and execute the
data. (You can execute the function in back ground also)

Step 4 – It will display the deliveries created.

Note: You have to perform the Picking process separately in collective

processing
Collective Processing – VL10A

N’ customer– N orders – N Delivery – One processing

The another path to go to this,

SAP Menu – Logistics – Logistic Execution – Out bond process – Goods issue
for out bond delivery – Out bond Delivery – Create – Collective Processing of
Document Due for delivery – Sales Order

Step 1 – Enter the relevant data on next window appear and click execute
Step 2 – Select the Orders Band and click on icon ‘Dialog’ on next window.
Step 3 – Enter the Picking Quantity and make a PGI as usually.

Step 4 – Click on ‘Next’ on next window appears.

Step 5 – Make a PGI for Next delivery.

Billing: VF01

Creation of billing document is actual generation of Invoice.

After processing the Billing document it is very necessary that revenue come
should go in respective account. That’s why is very necessary to
customization should done for posting sales revenue FI. The customization
procedure for posting to FI is as follows.

Setting for Posting to FI:

Procedure 1 – Updating of customer master

Step 1 – Goto Customer Master

Step 2 – Goto Sales Area Data

Step 3 – Goto Billing Document

Step 4 – Enter the ‘Account Assignment group’ and save the data.

Account assignment group concern with the type of revenues to be

collected. For our case study the Account Assignment group is “01- Domestic
Revenue”
Procedure 2 – Updating Material Master

Step 1 – Goto Material Master (mm02)

Step 2 – Select the View ‘Sales Org Data2)

Step 3 – Enter the Account Assignment Group. Group of materials with the
same accounting requirements. The account group here determines the
category of material for which it belongs to.

Procedure 3 – Updating Price Master

Step 1 – Goto to Pricing Procedure (V/08).

Step 2 – Select and edit your pricing procedure

Step 3 - Enter the respective account key in respective condition type. The
key here defines different G/L Accounts for different ‘Condition Type’.

The account key enables the system to post amounts to certain types of
revenue account. For example, the system can post freight charges
(generated by the freight pricing condition) to the relevant freight revenue
account.
Eg. For Price – ERL, for Customer Discount – ERS, for Freight it is ERF.

Procedure 4 – Updating IMG settings

Step 1 – Goto SPRO & IMG

Step 2 – Click on Sales & Distribution

Step 3 – Click on Basic Functions

Step 4 – Click on Account Assignment / Costing

Step 5 – Click on ‘Revenue Account Determination’

Step 6 – Click on ‘Assign G/L Accounts’

Step 7 – Click on ‘005 – Account Key’ on the next window appears. And fill
the data as below.
 G/L Account No.

Account Key

Sales Org. -

INT – Chart of Account - international

KOFI – Account Determination

V – Sales & Distribution

Creation of Billing (VF01)

Step 1 - Enter the transaction code VF 01

Step 2 – Enter your delivery Number

Step 3 – Save the document.

Step 4 – It will display the system generated billing document No.

Checking of Billing Document: (VF02)

Step 1 – Enter the Transaction Code VF02

Step 2 - Enter the billing document

Step 3 – Click on key ‘Accounting’

Step 4 – Click on key ‘Accounting Document’

Step 5 – It will display the general Account View
Packaging: Packaging is normally used for packing the base material. The
deliver of base material is done with this packaging material. This packaging
material has to define and assign to material and pricing procedure.

The setting to be done for packing material.

Setting 1 : Define Packaging material type and group

Step 1 – Goto SAP reference IMG

Step 2 – Goto logistic Execution

Step 3 – Click on Shipping

Step 4 – Click on Packing

Step 5 – Click on ‘Define Packaging Material Type’

Step 6 – Click on New Entries

Step 7 – Fill the details as below and save the Data,

Step 8 – Go back to ‘Packing’

Step 9 – Click on ‘Define Material group for packaging material’

Step 10 – Click on New entries

Step 11 – Define the group for packaging material and save the data.

Step 12 – Click on ‘Define Allowed Packaging Materials’ (its nothing bus

assigning Package material group to packaging material type’.

Step 13 – Click on New entries

Step 14 – Assign Packaging material type to material group and save the
data.

Cont….
Setting 2 - Define Material master for packaging. (Exclusive points
for packaging other than normal)

Step 1 - Click on MM01

Step 2 – Define the material type as ‘Packaging’.

Basic Data 1

008

Data to be fill in above window is,

- Base Unit of measure

- Material Group - Packaging
- General Item Category group – VERP Packaging
- Weight – Weight here mentioned is weight of material (eg. Box)
- Material Group Packaging Materials – It is a packaging group
defined above.
Sales: sales org. 1 –

The data to be filled in above window is,

Material Group – Package (008)

Sales: sales org. 2 -

The data to be filled in above window is,

Material Group – Package (008)

Account Assignment Group – 03 Finished Goods

Item category Group – VERP (Packaging)

General Item Category – VERP (Packaging)

Sales: general/plant

Material Group Packing Material – As above

Packaging Material type – as above

Allowed packing weight – it’s a total weight that packaging material can carry
i.e. including base material i.e. to be packed
Accounting 1 -

Standard Price – It is the standard price of packaging material.

Setting 3 - Create Packaging in Delivery

Step 1 – Go to Delivery (VL01N)

Step 2 – Pick the quantity and select the band

Step 3 – Click on Edit and further click on pack

Step 4 – It will further split the screen in two portion, the upper portion
shows the details of packaging material (to be entered manually) and lower
portion will show the details of the material to be packed.
Step 5 – Select both band and Click on new HU if full icon the below window

Step – 6 – It will show message handling units were created and save the
data and make PGI as in normal case.
Material Determination - In this IMG activity, you define the rules according to
which material determination functions.

When you create documents, material determination enables you to find certain
materials automatically using a key already stored in the system rather than using
the material number. You do not need to create a material master record for the key
entered in the SD document and which you use to find a material. The key entered
can, for example, be a customer-specific material number or the International Article
Number (IAN).

With material determination, the material entered is replaced automatically by the

material found during document creation. This material determination is dependent
on the sales document and can, for example, be used in a promotion when a product
is only to be sold with special packaging. During order processing, the system can
then automatically exchange the material with the normal packaging for the material
with the special packaging for a given period of time.

Procedure1 – Setting in IMG

Step 1 – Goto IMG

Step 2 – Click on Sales & Distribution

Step 3 – Click on basic functions

Step 4 – Click on Material Determination

Step 6 – Click on ‘Maintain Prerequisites for Material Determination’

Step 7 – Click on ‘Maintain Procedure’

Step 8 – Overview the procedure ‘A00001 – Material Determination’

Step 9 – Go back to Material Determination

Step 10 – Click on ‘Assign procedure to Sales Document Type’

Step 11 – Assign the ‘Material Determination’ procedure to your required document

Type eg. ‘OR’ – Standard Order.

Step 12 – Go back to ‘Material Determination’

Step 13 – Click on ‘Define Substitution Reasons’

Step 14 – Click on ‘New Entries’

Cont…..

Step 15 – Fill the Data as below

To show original
material

Select Any – in our case

(Automatic)
To show Warning
 Select the final result

Procedure 2 – Creation of record for Material Determination (VB11)

Step 1 – Goto Main Window (SAP Easy Access)

Step 2 – Click on Logistics

Step 3 – Click on Sales and Distribution

Step 4 – Click on Master Data

Step 5 – Click on Products

Step 6 – Click on Material Determination

Step 7 – Click on Create (Direct Transaction Route - VB11)

Step 8 – Enter the ‘Material Det. Type’ Earlier set.

Step 9 –Enter the Date, proposed location earlier entered and material
details and save the data and see the effect in Order (VA01)

Cont…..
Customer Name Actual Name taken
Item Proposal : Item proposals are stored independently of customers. If a
customer frequently buys the same product pallet, you can specify the item
proposal number in the customer master record.

The materials of an item proposal can be proposed by the SAP System as an

entry tool during order processing. You can then:

• Copy the materials as they are

• Change the specifications and only copy some materials or partial

quantity

Requirements
You can only include the products in a product proposal for which you created
a material master record.

Step 1 – Go to IMG

Step 2 – Click on Sales & Distribution

Step 3 – Click on Master Data

Step 4 – Click on Item Proposal

Step 5 – Click on ‘Define Item Proposal Types’

Step 6 – Click on ‘MS- Product Propsal’ and overview the screen

Step 7 – Click the transaction code ‘VA51’ for creating the item proposal
record

Step 8 – Fill the details as below and press the enter,

Step 9 – Enter the below details and save the data. It will give you number
which you have e to enter in your order. This number you have to enter in
your customer master details.
Step 10 – Goto sales order, click on Edit, propose item

Step 11 – Enter the Item Proposal Number as above saved in Sales

Document column and Click on either ‘default with qty.’ or ‘default without
qty.’
Step 12 – The proposed items will automatically appears in the order as
below,

Step 13 – The item proposal could be customer specific, you have to make
the setting in customer Master – Sales Area Data accordingly as below,
VD 51 – Creation of customer – material information record

You can create the record where customer orders something else for a
particular material.
Eg. If customer order ‘patta’ for leaf spring, the he will get the record of his
reference in final document.

Step 1 – Enter Transaction Code VD51

Step 2 – Enter The Sales area and customer details and press enter.

Step 3 – Enter the material no. and customer. Material information and save
the data.
Output Control – Output control is basically used for deciding the output
media eg. Mail, screen, printer

Step 1 – Goto IMG

Step 2 – Click on Sales & Distribution

Step 3 – Click on Basic Functions

Step 4 – Click on Output Control

Step 5 – Click on ‘Output Determination’

Step 6 – Click on ‘Output Determination Using the Condition Technique’

Step 7 – Click on ‘Maintain Output Determination for Sales Documents or anu

other’

Step 8 – Click on ‘Assign Output Determination Procedures’

Step 9 – Click on ‘Allocate sales document header’

Step 10 – Assign output procedure and output type

Free Goods :

Step 1 – Click on IMG

Step 2 – Click on Sales & Distributions

Step 3 – Click on Basic Functions

Step 4 – Click on ‘Free Goods’

Step 5 – Click on ‘Condition Technique for Free Goods’

Step 6 – Click on ‘Maintain Pricing Procedure’

Step 7 – Copy Item Category ‘Free Goods (SD) – NA0001’ for ‘Z---‘ and save
the data.

Step 8 - Go back to ‘Condition Technique for Free Goods’

Step 9 – Click on ‘Activate Free Goods Determination’

Step 10 – Assign Free Goods procedure as defined above to our own sales
area and save the data.

Step 11 – Go back to ‘Free Goods’ in basic function.

Step 12 – Click on ‘Control Free Goods Pricing’.

Step 13 – Click on ‘Maintain Condition Type For 100% Discount’

Step 14 – Study & Review Condition Type ‘R100’ and ‘NRAB’

Step 15 – Go back to ‘Control Free Goods Pricing’.

Step 16 – Click on ‘Maintain Pricing Procedure For Pricing’

Step 17 – Click on your pricing procedure

Step 18 - Click on New entries

Step 19 – Enter the Details as below and save the data,

Condition Type – NRAB

Reqt. - 59
AltCBV (Base Value) – 29

Condition Type – R100

Reqt. - 55
 AltCBV (Base Value) – 28

Step 20 – Free Good Determination ‘Click on Transaction Code VBN1’.

Step 21 – Enter the Condition Type ‘NA00’

Step 22 – Enter the Sales Area and other Details as below,

Cont….
 1 2 3 4 5

Definition As Above –

1. - Material on Which Free Goods are allowed

2. – Free goods quantity - Minimum order Quantity for Free Goods to be
applicable
3. – Total Free Goods to be applicable (Ratio)
4. – Free Goods to be given per Free Goods Applicable(2).
Formulae for Free Goods Calculation is,
document quantity / free goods quantity * free goods

5. Inclusive / Exclusive

Exclusive: - the customer pays for the goods ordered and receives extra
goods for free - more is delivered than is ordered

Inclusive: - the customer only pays for part of the goods ordered

- just as much is delivered as is ordered - only some of the goods are billed

- You determine whether an individual item should be generated for

representing inclusive free goods
Listing / Exclusion : Listing Exclusion is a customer specific record of material in
Sales Order.

Listing : A material list could be created for customer (depending on condition type),
in short customer couldn’t order beyond this material.

Exclusion : It is also List of material for which customer couldn’t order. This material
list is excluded from sales order for customer.

In short, Material listing lists which materials a customer can buy. Material exclusion
lists which materials a customer cannot buy.

A material listing is created for a customer. The customer can only buy the materials
contained in the list. The system does not allow any materials to be entered if they
are not contained in the material listing.

If no records exist for material listing, the sold-to party, for example, can in principle
buy the same materials as the payer. However, if there is a material listing record
specific to the sold-to party, the sold-to party can only buy the materials permitted in
the list. These materials do not have to be identical to those which the payer can
buy.

The Standard Condition types condition types and access sequence in the
SAP system is as given below,

Material listing and material exclusion are controlled using the condition technique
which is described in detail in the examples for pricing and output determination.
Further information on the condition technique can also be found in the manual "SD
Pricing and Conditions".

The following elements of the condition technique work together to control material
listing and exclusion:

• The condition table defines the field combination required in a material

listing or material exclusion master record.

• The access sequence is a search strategy with which the system searches
for valid condition records for each condition type. The access sequence refers
to the fields for material listing or material exclusion via the conditions tables
contained in the access sequence. Access sequences A001 for material listing
and B001 for material exclusion are defined in the standard R/3 System.

• The type defines how material listing or exclusion is carried out. Types A001
for material listing and B001 for material exclusion are defined in the standard
R/3 System.

• The procedures define the condition types to be used in material listing and
material exclusion. Procedures A00001 for material listing and B00001 for
material exclusion are defined in the standard R/3 System. The master
records for condition types A001 and B001 only are therefore checked for
material listing or exclusion.
Note

In a delivery created with reference to an order, material listing or material exclusion

are carried out on the basis of the underlying sales document type. Material listing or
exclusion are carried out for new items in the delivery if they were activated for the
underlying sales document type. Material listing or exclusion are not carried out for
items copied from the sales order. You must assign an appropriate procedure to the
sales document type DL in Customizing for material listing or exclusion to be carried
out in deliveries created without reference to a sales order (LO).

Overview of Listing & Exclusion:

Step 1 - Goto IMG

Step 2 - Click on Sales & Distribution - Basic Function – Listing Exclusion

Step 3 – click on ‘Activate listing/exclusion by sales document type’

Step 4 – Check whether Procedure for Listing & Exclusion is assign to your sales

document or not.

***
*** - Procedure for material listing
The procedure determines how the system reacts to several listings.
The procedure is only applied if several listings occur.
If, for example, one listing occurred for a customer and another for a customer
group. Both can apply to a material in a sales order.
Using the following settings, you can determine how the system reacts:
- The first listing in the access sequence is used
A - The last listing in the access sequence is used
B - At least one listing must apply
C - All listings must apply

Step 5 – click on ‘Maintain listing/exclusion types’

Step 6 – Check whether Condition Type is assigned to Access sequence or not.

Step 7 – Click on ‘Procedures for maintaining listing/exclusion’

Step 8 – Check the Standard Procedures for Listing & Exclusion

Step 9 – click on ‘Optimize accesses’

Step 10 – Click on New Entries, fill the data and save.

Step 11 – Click on ‘Maintain access sequences for listing/exclusion’

Step 12 – Select the band of access sequence for Listing and Exclusion one by one
and double click on access.

Step 13 : Check the Condition Table details as below, these details can be chane as
per your requirement.
Step 14 : Click on ‘Maintain allowed fields for listing/exclusion’

Step 15 : Check the details for Sales document type ???

Step 16 : Click on ‘Maintain condition tables for listing/exclusion’

Step 17 – Define your conditions for Condition Table bases on your requirement,
customer/ material etc. based on following available,
Definition: customer hierarchy

Sales and Distribution (SD)

A representation of complex customer structures.

For example, you can display the regional structure of a buying group as a customer
hierarchy. The customer hierarchy contains pricing information that is valid for all
customers in the hierarchy.

Customer Hierarchy
Customer hierarchies represent complex customer structures in the system and
are used for the organizational structures of buying groups or chains of retail outlets,
for example.
A customer hierarchy consists of individual hierarchy nodes which are allocated
hierarchically to each other on different levels to produce lower-level and higher-level
nodes. The structure of the customer hierarchy can be kept flexible and and adapt to
change at any time by means of the option to move hierarchy nodes dynamically.
The customer hierarchy function in the R/3 system is carried out using the partner
concept. The individual nodes are defined as partners and linked to a higher level
partner.
During sales order and billing processing, customer hierarchies are used in pricing to
take into account every aspect relevant to pricing and rebates for customers with a
complex group and association structure in particular.
For example, if a sales order is edited for a customer who is allocated to a customer
hierarchy relevant for pricing, the relevant hierarchy path, which displays the chain
of hierarchy nodes to which the initial hierarchy node is related, is determined
automatically. If condition records exist for a higher-level node, pricing is carried out
with reference to the conditions available there.
The hierarchy nodes of a customer hierarchy are created as customer master records
with account group (0012). The structure of the hierarchy results from allocating the
hierarchy node master records. It is also possible to create customers with different
account groups as hierarchy nodes (for example, 0001 for the sold-to party).
If you want to make your own settings for customer hierarchies, you must edit the
following points:

• Define hierarchy types with default partner function

• Define allowed account group allocations for each hierarchy type

• Allocate sales areas to each other

• If necessary, allocate the hierarchy type relevant for pricing for each sales
document type

• Then check the partner functions to determine whether they suffice for the
hierarchy levels you require and, if necessary, create further partner functions

Creation of Record for Listing Exclusion (VB01)

Step 1 – Click on Transaction Code VB01

Step 2 – Select the Type i.e. Listing or Exclusion

Step 3 – Select the Key Combination of ‘Condition’ Table and Press Enter

Step 4 – Enter the customer, Valid Date and Listing & Exclusion Material for
Customer as below.

The basic difference between Item proposal and Listing Exclusion is,
Item Proposal is related to Material Master Record. It is a record created considering
List of material for particular assembly. It the items list dependent on each other or
kit. It is a consolidated list of items with single defined name / number.

Whereas Listing / Exclusion is customer specific record. It is the list of items related
to specific customer / Group of customer. In short, Material listing lists which
materials a customer can buy. Material exclusion lists which materials a customer
cannot buy.

Credit Control Management –

The credit control area is an organizational unit that specifies and checks a
credit limit for customers.

Note
A credit control area can include one or more company codes. It is not
possible to assign a company code to more than one control control area.
Within a credit control area, the credit limits must be specified in the same
currency.
Standard settings
The credit control area 0001 is defined in the SAP standard system.

Setting 1 – Define Credit Control Area

Step 1 – Go to IMG – Enterprise Structure.

Step 2 – Click on Definition

Step 3 – Click on ‘Financial Accounting’

Step 4 – Click on ‘Define Credit Control Area’

Step 5 – Click on New Entries and fill the data as below and save the data
and give a description to saved data and again save.
Setting 2 – Assignment

Step 1 – Click on Assignment

Step 2 – Click on Financial Accounting

Step 3 – Click on ‘Assign Company code to Credit Control Area’

Step 4 – Assign Credit Control Area Define above to Company Code and save
the data.

Setting 3 – Sales & Distribution in Enterprise Structure

Step 1 – Click on Sales & Distribution

Step 2 – Click on ‘Assign sales area to credit control area’ as below and save
the data.
Setting 4 – Finanancial Accounting in IMG

Step 1 – Click on ‘Financial Accounting’

Step 2 – Click on ‘Accounts Receivable and Accounts Payable’

Step 3 – Click on ‘Credit Management’

Step 4 – Click on ‘Credit Control Account’

Step 5 – Click on ‘Define Risk Categories’

Step 6 – Click on ‘New Entries’

Step – Define Risk Category and assign Credit Control Area to it

Setting 5 – Sales & Distribution in IMG

Step 1 – Click on ‘Sales & Distribution’ in IMG

Step 2 – Click on ‘Basic Function’

Step 3 – Click on ‘Credit Management/Risk Management’

Step 4 – Click on ‘Credit Management’

Step 5 – Click on ‘Define Credit Groups’

Step 6 – The Standard Credit Groups are,

Step 7 – Click on ‘Assign Sales Documents And Delivery Documents’

Step 8 – First Click on ‘Credit limit check for order types’

Step 9 – Assign Credit Check as per your requirement and Credit group (01
for Order) and save the data.
Step 10 – Go back and Click on ‘Credit limit check for delivery types’

Step 11 – Assign require Delivery Credit Group & GL Credit Group and save
the data.

Step 12 – Go back and click on ‘Define Automatic Credit Control’ and

overview the screen for Automatic Credit Control.
Setting 6 – Click Transaction Code FD-32 (Creation of Record)

Step 1 – Enter Customer and Credit Control Area and click all the fields and
click on select all
Step 2 – Click Twice on Next Screen
Step 3 – Fill ‘Maximum Permitted Limit’ and save the data.

Setting 7 – Customer Master

Step 1 – Go to Customer Master

Step 2 – Click on Billing Document of Sales Area Data.

Step 3 – Enter the Credit Control Area

Step 4 – Assign You Credit Control Area and then Check VA01
Partner Function – In Sales & Distribution Partner Function is concern with
the Business Partner of the organization.
In Sales Process there are 4 different type of Partners,
a. Sold-to Party
b. Ship To Party
c. Billed to Party
d. Pay to Party

These Partners could be one party or could be different.

Setting 1 – For Selection of Field for Account Group

Step 1 – Click on IMG

Step 2 – Click on Logistic General

Step 3 – Click on business Partner

Step 4 – Click on Customers

Step 5 – Click on Control

Step 6 – Click on ‘Define Account Groups and Field Selection for Customers’

Step 7 – Click on New Entries,

Step 9 – Click on New Entries

Step 10 – Give a number and Name to Account Group

Number Range will be number range for Customer, Fill the Text Procedure
and Text Determination Procedure

Fill the Sales & Distribution Data

a. Customer Pricing Procedure,
b. Partner Determination Procedure relevant to your group.
c. Output Determination Procedure.

Click the field on Field Status Data one by one,

Step 11– Select the Group in each field status one by one
Step 12– Select, Suppress, make mandatory or Keep Optional database on
company requirement.
Step 13 – Similar repeat the procedure for all your Field Status

Setting 2 -

Step 1 – Goto IMG

Step 2 – Click on Sales & Distribution

Step 3 – Click on Basic Function

Step 4 – Click on Partner Determination

Step 5 – Click on ‘Set up Partner Determination for Customer Master’

Step 6 – Click on Partner Determination Procedure and then click on new

entries.

Step 7 - Give a partner determination procedure and Name, Save and go

back
Step 8 – Select the Band for Procedure and Double click on Partner Function
in Procedure

Step 9 – Click on New Entries, Enter Various partner function for your
business partner and click Not Modifiable and Mandatory Field and save the
data.
Step 10 – Click on ‘Partner Determination Procedure Assignment’

Step 11 – Assign Your Partner Determination Procedure to various account

group and save the data

Step 12 – Click on ‘Account Groups - Function Assignment’

Step 13 – Click on New Entries

Step 14 – Select the Partner Function and Account Group Assignment as

under
Step 15 – Create the Customer
Sales Document Types (VOV8) – This Control the Header Level data. Eg.
Copy the information from previous Sales Document.

Step 1 – Click on IMG

Step 2 – Click on Sales & Distribution

Step 3 – Click on sales

Step 4 – Click on Sales Documents

Step 5 – Click on Sales Document Header

Step 6 – Click on ‘Define Sales Document Types’ – Either You can copy the
Sales Document type or You can also define it.

Sales Document – Type – To Start with “Z….”

SD Document catalogue – This depend on type of Sales Order eg. ‘C’ For
Order

Sales Document Block – To determine whether this document is not

blocked for processing.

Number System

Number range internal assignment – 01

Number Range External assignment – 02

Item Number Increment – It could be in any sequence 5,10 or 1

Sub item increment – It is usually 1

General Data

Reference Mandatory – Whether the order is to make with reference to

any other sales document.

Check Division : To check the Division, with message or to give error.

Check Division – to check whether item level division and header level is
same or not.

Probability - Probability of order being completed to be 100 %

Read info. Record – The document to read the customer info record or not.

Check Credit Limit – To check the credit Limit record (Error if any credit not
remained)

Credit Group – Check Credit Group for Sales Order (Dependent on Document
type)

Check Purchase Order No. – To check whether this PO number already exist

Enter PO – Whether the PO No. is mandatory or Not.

Output Application – For what reason this application is to be sent

Commitment Date- Whether the system should redetermine if the changes

made to qty., material or delivery date & Time.
Transaction Flow

Screen Sequence group – To determine what data should display for this
document type whether for Sales Order, Inq., Quotation or Contract.

Display Range - You can specify, for example, that the system displays only
main items and that it suppresses those items that are dependent on others.
In this case, you can still enter dependent items in the document. However,
the system does not display them.

Incomplete procedure - relevant for document

Function Code for Overview Screen – To determine what data and layout
you in sales order

Transaction Group – Relevant to Sales Document – 0 for Sales Document

type

Quotation Messages, Outline Agreement Messages – Whether you want

system to check there are open agreement and quotation already exist for
this document

Document Pricing Procedure – It is a procedure assigned to your

customer and your pricing procedure.

Status Profile -???

Message Master Contract – This is to check whether any master contract

exists, when you are creating a contract.

Product Attribute Messages - When you enter a product manually

in a sales document, depending on the indicator you set here, the
system either displays an error message and blocks further processing
until you check the product attributes or displays a warning which advises
you to check the product attributes but further processing is possible.

This only applies to products entered manually. In the case of material

determination, the system automatically disregards products with attributes
which the ship-to party has rejected.
Incomplete messages – Whether the system to give any warning
messages if document is not complete etc.

Corr. Delivery Type - is used for Scheduling agreement

Delivery Block