SAP SD Training

SAP SD (Sales and Distribution) module of SAP ERP

system enables companies to manage sales and customer service. It is one
of the fundamental modules of SAP ERP and is implemented in most SAP
projects. This module is also related to outbound logistics and shipments.
Our team at ERP 360 developed a free SAP SD training course that will help
interested people to learn SAP SD by following our free tutorials.

This training course is currently under development. You can browse selected
modules of this course using the links below. New links will be added over
time.

Module 1: Getting Started with SAP SD

Tutorial 1.1: SAP SD Organizational Structure

Tutorial 1.2: How to Create SAP SD Inquiry

Tutorial 1.3: How to Create SAP SD Quotation

Tutorial 1.4: How to Create SAP SD Contract

Tutorial 1.5: How to Create SAP SD Sales Order

Tutorial 1.6: How to Create a Scheduling Agreement in SAP SD

Module 2: SAP SD Master Data

Tutorial 2.1: SAP Customer Master Data

Tutorial 2.2: SAP SD Material Master

Tutorial 2.3: SAP Customer-Material Info Record

Tutorial 2.4: SAP SD Conditions Master Data

Tutorial 2.5: SAP SD Output Master Data

Module 3: SAP SD Sales Customizing

Tutorial 3.1: SAP SD Sales Document Types

Tutorial 3.2: SAP SD Item Categories

Tutorial 3.3: SAP SD Schedule Line Categories

Tutorial 3.4: SAP Sales Organization

Tutorial 3.5: SAP Distribution Channel

Tutorial 3.6: SAP SD Division

Tutorial 3.7: SAP Sales Area

Tutorial 3.8: SAP Sales Office

Tutorial 3.9: SAP Sales Group

Tutorial 3.10: SAP Shipping Point

Tutorial 3.11: Assignment of Plant to Sales Organization and Distribution

Channel

Module 4: SAP SD Processes

Tutorial 4.1: SAP Order to Cash Process

Tutorial 4.2: SAP Sales Document Flow

Tutorial 4.3: SAP SD Copy Control

Tutorial 4.4: SAP SD Availability Check

Tutorial 4.5: SAP SD Incompletion Procedure

Tutorial 4.6: SAP Material Determination

Tutorial 4.7: SAP Material Listing

Tutorial 4.8: SAP Material Exclusion

Tutorial 4.9: SAP Profit Center Determination in Sales Order

Module 5: Additional Sales Scenarios

Tutorial 5.1: SAP Free Goods

Tutorial 5.2: SAP Sales to Employees Process

Tutorial 5.3: SAP Delivery Block Functionality

Tutorial 5.4: SAP Service Order Process

Tutorial 5.5: SAP Make to Order Process

Module 6: Processing of Complaints

Tutorial 6.1: SAP SD Credit Memo Processing

Tutorial 6.2: SAP SD Debit Memo Processing

Tutorial 6.3: SAP SD Return Order Process

Tutorial 6.4: SAP Invoice Correction Request

Tutorial 6.5: SAP Advanced Returns Management

Module 7: SAP SD Reporting

Tutorial 7.1: Essential SAP SD Reports

Tutorial 7.2: SAP Sales Information System

Module 8: Business Partners

Tutorial 8.1: SAP Business Partner

Tutorial 8.2: SAP Partner Function Configuration

Tutorial 8.3: SAP SD Partner Determination

Module 10: SAP SD Business Processes

1. Sales Quotation Business Process in SAP

2. Sales Order Processing: Sale from Stock

3. Sales Processing Using Third Party (without Shipping Notification)

4. Sales Processing using Third Party (w. Shipping Notification)

5. Free of Charge Delivery

6. Credit Management

7. Returns and Complaints

8. Advanced Customer Returns Management

9. Sales Order Processing for Prospect

10. Sales of Non-stock Item with Order Specific Procurement

11. Debit Memo Processing

 12. Foreign Trade Export Processing

13. Customer Consignment Processing

14. Returnables Processing

15. Cross-Company Sales Order Processing

16. Sales Order Processing with Customer Down Payment

17. Sales Third-Party Process with Subcontracting

18. Sales: Period End Closing Operations

19. Credit Memo Processing

20. Sales Order Processing with Collective Billing

21. SAP SD Tables

SAP SD Organizational Structure

sap sd organizational structureThis tutorial is part of SAP SD training course

and it explains about SAP SD organizational structure. After following the
tutorial, you will learn how to model enterprise structure in SAP SD (Sales
and Distribution) module of SAP ERP. Knowledge of SAP SD organizational
structure is fundamental for analysts and consultants that specialize in SAP
SD and here you will learn about each the SD organizational units.

Target Audience of this Article

Readers interested in learning about SAP SD

SAP Consultants already having experience in other SAP’s module other than
Sales & Distribution and are interested in learning more about SAP Sales &
Distribution

Clients or Users at user end willing either implementing SAP or will be

implementing SAP in the future to understand jargons which SAP Consultants
use

Foreword

Like any other organization’s structure, be it the reporting structure

mentioned in the organizational chart, departmental structure, reporting
hierarchy, signing mandate hierarchy, processes and procedurals structure;
which is mandatory for smooth processing of business processes. Hence, SAP
ERP has its own organizational structure. Every module of SAP has its own
enterprise structure. Enterprise structure helps in building a hierarchy and
structure to streamline the business processes.

Before initiating implementation, designing and configuring the actual

system, Enterprise Structure is defined in the Business Blueprint
documentation phase. It is an important step is to define the organizational
structures. It requires thorough analysis of how your organization currently
runs and the business wants to run its business after implementation of SAP.

If the organization is huge, dealing with multiple line of businesses, its

processes are complex and if it is scattered geographically at different
locations within the country, region, continent or globe; designing and
finalizing the Enterprise Structure is a very critical, vital and time taking
activity. Several meetings can be called with the Business Process Owners
and Subject Matter Experts to finalize the Enterprise structure which may
also require endorsement and approval from the higher management.
Sometimes sign off on SAP Enterprise Structure is obtained separately during
the Business Blueprinting phase.

SAP SD Organizational Structure

In the SAP ERP, several structures can be used to represent the legal and
organizational structure of the company. Organizational elements can be
structured from the point of view of accounting, materials management and
sales and distribution. It is possible to combine these structures. The
organizational structures form a framework in which all business transactions
can be processed.

Following organizational units represents Sales and Distribution module:

Sales Organization

Distribution Channel

Division
Sales and Distribution module uses some other organizational units which
are maintained by other module in SAP, such as:

Company Code (Finance Module)

Plant (Material Management Module)

Storage Location (Material Management Module)

The organizational units discussed below are relevant to SAP Sales and
Distribution only.

Graphical Overview of Enterprise Structure in SAP Sales & Distribution

SAP SD Organizational Structure

SAP SD Organizational Structure

Company Code

Company Code in SAP is the organizational unit which is the created in

Finance (FI) module and same is linked with Sales & Distribution module.
Company Code represents an independent company. Company which is a
legal entity and statutory requirement is to maintain Balance Sheet and
Profit and Loss Statement are created and maintained at the Company Code
level.

In a scenario where the model is that a corporate group or group of

companies are carrying out their businesses in different sectors of economy,
every Company by law is a legal entity which is liable to maintain separate
book of accounts. All books of accounts are maintained at Company Code
level.

Sales Organization

Sales Organization in SAP Sales & Distribution module is at the highest level
in organizational structure and is primarily responsible for carrying out and
monitoring sales. Sales Organization is responsible for devising sales
strategies which are to be executed to gain market share.
If there are any Customer’s complaints regarding the goods and services
which the company primarily is responsible for, all such queries and
complaint handling is done at Sales Organization level. A Sales Organization
is assigned to a unique Company Code. If the business is of such nature, one
or more Sales Organizations can be created and assigned to a Company
Code.

All the sales reporting is accumulated at Sales Organization level. Reporting

is carried out by Sales Organization. If you want to see sales performance of
one sector your business, you will select the Sales Organization and all the
sales pertaining to the select Sales Organization will be displayed.

All Sales and Distribution documents are assigned to a single Sales

Organization. If you want to use SAP SD, at least one Sales Organization
must exist.

Distribution Channel

A Distribution Channel in simple terms refer to your strategy how you

penetrate in the market with you offering either product or a service or both.
It is your mean how you would like to reach to your customer or end
consumer. Examples of Distribution Channel can be, but not limited to; Sales
to Wholesale Customers, Retail sales, Institutional sales, Internet sales,
Employee Sales, Fair Price Shop, etc.

Different categories of Customers can be reached through one or more

Distribution Channels within a Sales Organization. To proceed with sales
processing, at least one Distribution Channel is required.

Division

Division is used to group certain nature of goods and services which share
some traits or properties. It also serves and represents the product line of
your business. When executing sales in SAP Sales and Distribution, at least
one division should be available in the SAP system. Materials which are sold
to the customer should be assigned to a division.

Example we can take is of any automobile dealer having offering 3s services.

Namely: Sales (of cars new or used), Service and Spare parts.

Sales Area

SAP SD Sales Area

SAP SD Sales Area

In SAP Sales and Distribution, Sales Area is just a of combination of Sales

Organization, Distribution Channel and Division. It defines that a certain
Sales Organization employed certain strategy of market reach i.e. a
Distribution Channel to sale a good or service belonging to a certain division.

Every sales document in SAP Sales and Distribution is assigned to a single

Sales Area. Sales reporting can be further refined or drilled when you restrict
and select a certain Sales Area in the SAP system.

Plant

Plant in the SAP system is broader term which has a varying definition when
different logistics modules come into discussion.

In Materials Management (MM) module, Plant is referred to facility where the

material stock is kept, stored and inventory is maintained

In Production Planning (PP) module, Plant is referred to a production facility

where the production of goods is done

In Sales and Distribution (SD) module, Plant is a facility from where the
finished product is distributed or dispatched to customer

In SAP Sales and Distribution, to proceed with the sales and dispatching, one
Plant is required.
Storage Location

Storage Location is an organization unit in logistics which assigned to a Plant

where the stock is kept. Storage Location can be characterized and vary
based on their properties like Raw Material Storage Location, Finished Goods
Storage Location, Spares Storage Location, Returns Sales Storage Location,
Temperature Controlled Storage Location, etc.

Shipping Point

For shipping the product to the customer, Shipping Point is required. Shipping
Point is assigned to a Plant. A Plant can have several shipping points based
on the dispatch activities required for the shipping. For instance, some
materials are fragile in nature and require extra care while dispatching
maybe it requires manual labor or a product which is heavy in nature and
require tools such as fork lifter or crane.

Several Plants can have one Shipping Point provided if they are physically
located within the same vicinity.

Sales Office

Business often setup several Sales Offices apart from the head office or
headquarters to reach the market in depth. These Sales Offices are often
located at different geographical areas. Sales reporting can be executed with
Sales Office organizational unit to analyze the performance of Sales Offices.
It basically acts as a liaison office between Company’s headquarters, sales
department and the Customer.

Sales Group

Employees belonging to certain Sales Office can be referred as Sales Groups.

These Sales Groups are assigned to their respective Sales Offices. It is a
subset of Sales Office.

Graphical Overview of Extended SAP SD Organizational Structure

Extended SAP SD Organizational Structure

Extended SAP SD Organizational Structure

Did you like this tutorial? Have any questions or comments? We would love
to hear your feedback in the comments section below. It’d be a big help for
us, and hopefully it’s something we can address for you in improvement of
our free SAP SD tutorials.

How to Create SAP SD Inquiry

In this SAP SD tutorial, we will talk about inquiries in

SAP Sales and Distribution. You will learn what SAP SD inquiry documents are
used for and how to create them. We will provide screenshots and
guidance that are relevant for this process.

What is an Inquiry in SAP SD

An inquiry and quotation are the first documents in SAP SD which are a part
of pre-sales business process. Inquiries and quotations help you to determine
important sales related data and can be saved as documents. If the
customer then places an order, this data can be accessed. Use this pre-sales
information to plan and evaluate your marketing and sales strategies and as
a basis for establishing long-term business relationships with your
customers, for example by:

 Tracking lost sales

 Recording pre-sales data to help negotiate large contracts

 Selling goods and services to large organizations that require

documentation of the entire process
Standard SAP SD inquiry normally contains:

 Customer and Material Information

 Pricing, be it Customer or Material specific

 Delivery dates and delivery quantities

 Information about shipment processing

 Information about billing

 In case of Inquiry, Quotation and Contract Validity Periods / Dates

How to Start Inquiry Transaction

There are two options:

 Enter VA11 in Transaction Command Field for creating Inquiry or

Enter VA11 Transaction

 Navigate through ‘Tree’

 V
A11 Transaction for Creation of Inquiry in SAP Menu

How to Create SAP SD Inquiry

Once you have entered the Inquiry: Creation Initial screen, you have to select
relevant Inquiry Type. Each Inquiry type has its own functionality and viewing
based on the configuration done at backend.

Select Relevant Inquiry Type(s)

Standard Inquiry Type of Inquiry is: IN

Create Inquiry – Initial Screen

Please note, any field having a ‘tick mark’ means

its mandatory and it has to be populated, else the SAP system would not
allow you to proceed further.

In Inquiry, to opt for a required Inquiry type press F4 button on the respective
field and it will show all LoVs (List of Values).
List with Inquiry Types

Select the relevant Inquiry type to proceed to the next step.

Create a Standard Inquiry

Populate Sales Organization with your relevant Sales Organization,
Distribution Channel and Division. Click Enter button.

Fill in Sales Area Data

Hint: if you populate your relevant Sales Organization, Distribution Channel

and Division first and then opt for the relevant Inquiry type, only Inquiry
types relevant for the selected Sales Organization, Distribution Channel and
Division will be displayed in LoVs.

Master Data Involved when Creating Inquiry

The following master data is involved when creating an inquiry. This master
data fetches relevant information and populates the relevant fields
accordingly.

Customer Master Data

 Name of the Customer

 Address

 Location

 Taxation details
  Geographical location according to company’s Sales Geographical
Structure

 Shipping details

 Billing details as in Terms of Payment

 Partners associated with the Customer I.e. Ship to Party, Billing, Payer
etc.

Material Master Data

 Material Description

 Unit of Measure (Stock Keeping Unit – SKU)

 Transportation Group

 Loading Group (fork lifter, manual handling etc.)

 Taxation information

Customer Material Info Records

 Used to maintain customer relevant SKU codes which are mapped with
the company’s code

Condition Master (Pricing)

 Base price of the product or special price for a particular customer

 Discount(s) on the product or special discount offered to one customer

 Freight

 Taxes

Partners (Parties) Involved in SAP SD Inquiry Creation

 Sold-To Party: the entity that inquired the goods

 Ship-To Party: to whom goods are be delivered to

 Bill-To Party: the entity that is responsible to receive the bill

 Payer: the entity responsible for the payment

Select the Customer

This is the initial screen of Inquiry once you have selected the relevant
Inquiry type and Sales Area (combination of Sales Organization, Distribution
Channel and Division is technically termed as Sales Area in SAP SD).

Enter Sold-To and Ship-To Parties

You can see Sold to Part and Ship to Party fields at the top left of the screen
just below Standard Inquiry field.

Sold-To Party is one who is responsible for Inquiring Products and actually
places the Inquiry with your company.

Ship-To Party is one who will be receiving the goods.

One Sold-To Party can have multiple Ship-To Parties. If there are many Ship To
parties associated with one Sold-To Party, a dialog box will pop up in the
Inquiry screen. You can select the relevant Ship-To Party from this dialog box
which the Sold-To Party has instructed you to ship the products to.

Press F4 or button on the Sold To Party field to search for your relevant
Sold-To Party. You can search by Search Term maintained in the Customer
Master or also by Name. To remain specific with your search, enter
relevant Sales Organization, so that only customers maintained in your Sales
Organization will be displayed.

If you decide to find the customer by name, enter customer’s first name with
* before and after the name. This is called wild card search.
Example: *demo*.

Search for a Customer

Hint: You can use asterisk to be more specific in your search and
press Enter to get output of your search.

Customer Search Results

Double click on the required customer line in an inquiry to select that

customer.
A Customer was Populated into the Inquiry

Press Enter once you have selected the Sold-To Party, so that system can
accept the customer and proceed with the creation of SAP SD inquiry.

Choose Ship-To Party Dialog Window

Since this Customer has two Ship-To Parties, a dialog box is popped up to
select the relevant one which your customer, Sold-To, has instructed. Double
click on the required one and the same will be selected.
Sold-To and Ship-To Parties have need Successfully Entered in the Inquiry

If there’s only one Ship-To Party, once you press Enter, Ship-To Party will
automatically get populated.

Guide to Inquiry Screen

This part of the screen is called Header of the Inquiry:

Header of SAP SD Inquiry

This part of the screen is called Overview of the Inquiry:

Item Overview of SAP SD Inquiry

SAP SD Inquiry – Sales Overview Tab

This part of the screen is called the line item part of the inquiry where
materials which are inquired by the customer are to be maintained:

Line items in SAP SD Inquiry

Select the Material

Use F4 button to search for the material the same way we did it for a
customer and repeat the same process for entering multiple line items (if
required).

Search for a Material

Select the Material

Double click on the desired material to select it.

The Material was Inserted into SAP SD Inquiry

Enter quantity of the material:

Enter Quantity of the Material

Incompletion Log for Inquiry

The incompletion log helps to check if any mandatory data is missing in the
inquiry. To start it go to Edit > Incompletion Log or press Ctrl+F8 to see if the
inquiry is complete.

SAP SD Inquiry – Incompletion Log

If the document is complete, the system will prompt the relevant message

accordingly: .

The Inquiry Document is Complete

Navigating Inquiry Screens – Header

Press button to view header details in the inquiry.

Go to Header of the Inquiry Document

Here you can see relevant sales data:

 User who created this inquiry

 Sales Organization, Distribution Channel and Division information

 Sales Office

 Sales Group

 Date on which the document is created

 Document Currency

 Customer Group

 Price list

 Sales District
SAP SD Inquiry – Sales Header Data

Press tab to see the partners which the customer has:

SAP SD Inquiry – Header Partners

Press to know the current status of the Inquiry:

SAP SD Inquiry – Header Status Tab

Press button to go back to the main inquiry screen.

Navigating Inquiry Screens – Item

SAP SD Inquiry
If you want to see the pricing of the individual material, select that line item

and press item conditions button:

Item Pricing Conditions Button

Here, you can see the pricing of the selected material:

Pricing of a Selected Material in Inquiry

Press to view finished goods material’s details:

Sales B Tab of Item in an Inquiry

Press to see if this material is confirmed and available to be

delivered on the Required Date of Delivery.

Schedule Lines of an Item in an Inquiry

Press to go back to the main inquiry screen.

Save the Inquiry

Once you have created the Inquiry and satisfied with the information
populated, press or CTRL+S to save the Inquiry.

The Inquiry has been Saved

The SAP system will output a message at the bottom of the screen that the
inquiry has been saved and mention the number of the inquiry.

Did you like this tutorial? Have any questions or comments? We would love
to hear your feedback in the comments section below. It’d be a big help for
us, and hopefully it’s something we can address for you in improvement of
our free SAP SD tutorials.

How to Create SAP SD Quotation

 In this SAP SD tutorial, we will talk about
quotations in SAP Sales and Distribution. You will learn what SAP SD
quotation documents are used for and how to create them. We will provide
screenshots and guidance that are relevant for this process.

What is a Quotation in SAP SD

An inquiry and quotation are the first documents in SAP SD which are a part
of pre-sales. In order to proceed with sales, i.e. quotation creation, inquiry
and quotation are NOT mandatory documents which have to be maintained /
entered in the system in order to proceed with the quotation/sales
processing. Quotations serve as a legal document, i.e. you confirm the
customer that you shall provide XYZ material on specific rate within the
validity of the quotation.

Inquiries and quotations help you to determine important sales related data
and can be saved as documents. If the customer then places an order, this
data can be accessed. Use this pre-sales information to plan and evaluate
your marketing and sales strategies and as a basis for establishing long-term
business relationships with your customers, for example by:

 tracking lost sales

 recording pre-sales data to help negotiate large contracts

 selling goods and services to large organizations that require

documentation of the entire process

Standard SAP SD quotation normally contains:

 Customer and material information

 Pricing, be it customer or material specific

 Delivery dates and delivery quantities

 Information about shipment processing

  Information about billing

 Contract validity periods/dates

How to Start Quotation Transaction

There are two options:

 Enter VA21 in Transaction Command Field for creating Quotation or

Enter VA21 Transaction

 Navigate through ‘Tree’

VA21 Transaction for Creation of Quotation in SAP Menu

How to Create SAP SD Quotation

Once you have entered the Quotation: Creation Initial screen, you have to
select relevant Quotation Type. Each Quotation type has its own functionality
and viewing based on the configuration done at backend.

Select relevant quotation type(s). The standard quotation type of quotation

is: QT.
Create Quotation – Initial Screen

Please note, any field having a ‘tick mark’

means its mandatory and it has to be populated else system would not allow
you to proceed further. In order to opt for a required quotation type, either
press F4 on the respective field and it will show all LoVs (List of Values).
List with Quotation Types

Select the relevant quotation type to proceed to the next step.

Create a Standard Quotation

Populate Sales Area with your relevant Sales Organization, Distribution
Channel, and Division.

Fill in Sales Area Data

Hint: if you populate your relevant Sales Organization, Distribution Channel

and Division first and then opt for the relevant quotation type, only quotation
types relevant for the selected Sales Organization, Distribution Channel and
Division will be displayed in LoVs.

Create Quotation with Reference to Inquiry

If you want to create a quotation with reference to an inquiry,

press: or F8 button.
Create a Quotation with Reference to an Inquiry

Once it is pressed, a dialog box will appear and you need to select the
relevant tab.

Create with Reference to Inquiry

Enter the document (in our case inquiry) number. If you know the number,
enter the number directly or press F4 or button to search for the desired
inquiry document.

Search for Inquiry Document Number if You Don’t Know It

For example, enter sold-to party code to search for desired inquiry by
customer.

Search Inquiry by Customer

List of ALL Inquiries which are created against the selected customer will be
displayed by the SAP system.

List of Inquiries for a Particular Customer

Select the desired inquiry.

Select Inquiry
Press either , if there are multiple items in the referencing
document and you want to select a particular item which should be copied in

the quotation or select to copy everything directly.

Here we shall press button.

Select Items to Copy from Inquiry to Quotation

If there are multiple line items, check box can be used to select or deselect
an item which is not required to be copied into quotation from the inquiry.
Furthermore, you can also edit the quantity if you want to change it from the
referencing document.

Once you Press or F5, you will enter into the quotation screen.
SAP SD Quotation

You can see that all the information from the Inquiry was copied into the
quotation.

Master Data Involved when Creating Quotation

The following master data is involved when creating a quotation. This master
data fetches relevant information and populates the relevant fields
accordingly.

Customer Master Data

 Name of the Customer

 Address

 Location

 Taxation details

 Geographical location according to company’s Sales Geographical

Structure

 Shipping details

 Billing details as in Terms of Payment

 Partners associated with the Customer I.e. Ship to Party, Billing, Payer
etc.
Material Master Data

 Material Description

 Unit of Measure (Stock Keeping Unit – SKU)

 Transportation Group

 Loading Group (fork lifter, manual handling etc.)

 Taxation information

Customer Material Info Records

 Used to maintain customer relevant SKU codes which are mapped with
the company’s code

Condition Master (Pricing)

 Base price of the product or special price for a particular customer

 Discount(s) on the product or special discount offered to one customer

 Freight

 Taxes

Output Master

 The process of communication with customer once the quotation is

created via printout of the quotation which is sent to customer by post,
fax or email.

Partners (Parties) Involved in SAP SD Quotation Creation

 Sold-To Party: the entity that inquired the goods

 Ship-To Party: to whom goods are be delivered to

 Bill-To Party: the entity that is responsible to receive the bill

 Payer: the entity responsible for the payment

You can see Sold-To Party and Ship-To Party fields at the top left of the screen
just below the standard quotation field.

Since this is a legal document, enter the Validity Dates within which this
document is valid and can be referred in future in creating a sales order.
Validity Date of Quotation

You can either enter dates directly in Valid From and Valid To fields in
following formats:

 01.11.2016

 011116

 01112016

 Press F4 or and the dialog box shall appear showing the calendar

Calendar

Double click on the desired date and it shall get populated in the respective
field.

Guide to Quotation Screen

This part of the screen is called Header of the Quotation:

Header of SAP SD Quotation

This part is called Overview of the Quotation:

Overview of SAP SD Quotation

This is called the line item part of the quotation where materials which are
inquired by the customer are to be maintained:

Line Items of SAP SD Quotation

Incompletion Log for Quotation

Go to Edit > Incompletion Log or press Ctrl+F8 to see if the quotation

created with reference is complete.
Check Incompletion Log of Quotation

If the document is complete, system will prompt the relevant message

accordingly .

SAP SD Quotation is Complete

Navigating Quotation Screens – Header

Press button to view header details in the quotation.

Display Quotation Header Data

Here you can see relevant sales data:

 User who created this Quotation

 Sales Organization, Distribution Channel and Division information

 Sales Office

 Sales Group

 Date on which the document is created

 Document Currency

 Customer Group

 Price list

 Sales District
SAP SD Quotation – Header

Press tab to see the partners which the customer is having:

SAP SD Quotation Partners

Press to know the current status of the quotation.

SAP SD Quotation Status

Press to go back to the main quotation screen.

Navigating Quotation Screens – Item

If you want to see the pricing of the individual material i.e. the price which
you are about to quote to the customer, select that line item and press this

conditions button .
Item Pricing Conditions

Here, you can see the pricing of the selected product.

Item Pricing Details

Press to view finished goods material’s details.

Sales B Tab of Quotation Item

Press to see if this material is confirmed and available to be

delivered on the required date of delivery.

Schedule Lines of Quotation Item

Press to go back to main quotation screen.

Save the Quotation

Once you have created the quotation and satisfied with the information
populated, press or CTRL+S to save the quotation.

Save SAP SD Quotation

SAP SD Document Flow

There is a standard functionality in SAP SD. When the documents are created
with reference, one can see the end to end document flow and it shall show
all the preceding and subsequent documents. For example, in our case, we
want to know the preceding document of the quotation i.e. the inquiry. To
find it out, go to Change Quotation or Display
Quotation transactions: VA22 and VA23 respectively.

VA22 – Change Quotation

Or via navigation tree:

Transactions VA22 and VA23 – Change and Display Quotations

Enter the quotation number:

Quotation Number in VA22

Press or Shift+F5 to see the document flow.

Display Document Flow

SAP SD Document Flow with Inquiry and Quotation

Here you can see that the quotation in hand was created from an inquiry.

Did you like this tutorial? Have any questions or comments? We would love
to hear your feedback in the comments section below. It’d be a big help for
us, and hopefully it’s something we can address for you in improvement of
our free SAP SD tutorials.

How to Create SAP SD Contract

Author Written by Ibn e Rasheed and last updated on Posted onAugust

16, 2017.

In this SAP SD tutorial, we will talk about

contracts in SAP Sales and Distribution. You will learn what SAP SD
contract documents are used for and how to create them. We will provide
screenshots and guidance that are relevant for this process.

What is a Contract in SAP SD

Outline agreements play an important role in nearly all business processes.
Customers and vendors agree on the goods to be provided under certain
conditions and within a specific period of time. Outline agreements
streamline business processes for both partners in a business relationship.
The two main outline agreements are:

 scheduling agreements

 contracts

There are two types of contracts – value and quantity. Contracts can
cover both goods and services. Generally, no restrictions apply to the
different contract forms.

A contract is an outline agreement between you and your customer that is

valid for a certain time period. The contract does not contain any schedule
lines, delivery quantities, or delivery dates. The same functions are available
in contracts as in orders. You can also agree on special price agreements.
The customer fulfills the contract with individual releases. Schedule lines are
created in the release order when it is placed. The release order is then
processed like any standard order. Any special agreements regarding prices
are copied from the contract.

Release orders are created with reference to a contract. This generates a

document flow record that allows you to update released quantities and
values in the contract.

You can create release orders in the following ways:

 Choose Create with reference on the initial screen

 In the Sales document menu, choose Sales document → Create with

reference→ To contract

 Assign an order item to a contract retrospectively

 Use the automatic system to search for open outline agreements when
you create an order

Standard SAP SD contract normally contains:

 Customer and material Information

 Pricing, be it customer or material specific

 Information about shipment processing

  Information about billing

 Validity periods / dates

How to Start Contract Transaction

 Enter VA41 in Transaction Command Field for creating Contract or

Enter VA41 Transaction

 Navigate through ‘Tree’

VA41 Transaction for Creation of Quotation in SAP Menu

How to Create SAP SD Contract

Once you have entered the contract creation initial screen, you have to
select relevant contract type. Each contract type has its own functionality
and viewing based on the configuration done at backend.

Standard Types of Contracts:

 Quantity Contract is: QC

 Rental Contract: QP
  Value Contract: WK1

 Material rel. Value Contract: WK2

 Service and Maintenance Contract: SC

Create Contract – Initial Screen

Please note, any field having a ‘tick mark’ means

its mandatory and it has to be populated else system would not allow you to
proceed further. In order to opt for a required contract type, either
press F4 on the respective field and it will show all LoVs (List of Values).
List with Contract Types

Select the relevant Contract type to proceed to the next step

Create a Quantity Contract

Populate Sales Area with your relevant Sales Organization, Distribution

Channel and Division.
Fill in Sales Area Data

Hint: if you populate your relevant Sales Organization, Distribution Channel

and Division first and then opt for the relevant contract type, only contract
types relevant for the selected Sales Organization, Distribution Channel and
Division will be displayed in LoVs.

Master Data Involved when Creating Contract

The following master data is involved when creating a contract. This master
data fetches relevant information and populates the relevant fields
accordingly.

Customer Master Data

 Name of the customer

 Address

 Location

 Taxation details

 Geographical location according to company’s sales geographical

structure
  Shipping details

 Billing details as in terms of payment

 Partners associated with the customer, i.e. ship-to party, bill-to party,
payer, etc.

Material Master Data

 Material description

 Unit of measure (Stock Keeping Unit – SKU)

 Transportation group

 Loading group (fork lifter, manual handling etc.)

 Taxation information

Customer Material Info Records

 Used to maintain customer relevant SKU codes which are mapped with
the company code

Condition Master (Pricing)

 Base price of the product or special price for a particular customer

 Discount(s) on the product or special discount offered to one customer

 Freight

 Taxes

Output Master

 The process of communication with customer once the contract is

created via printout of the quotation which is sent to customer by post,
fax or email.

Partners (Parties) Involved in Contract Creation

 Sold-To Party: the entity that inquired the goods

 Ship-To Party: to whom goods are be delivered to

 Bill-To Party: the entity that is responsible to receive the bill

 Payer: the entity responsible for the payment

Entering the Customer – Sold-To and Ship-To

This is the initial screen of contract once you have selected the relevant
contract type and sales area (the combination of Sales
Organization, Distribution Channel and Division is technically termed
as Sales Area in SAP SD).

Create Quantity Contract – Overview

You can see Sold-To Party and Ship-To Party fields at the top left of the screen
just below the contract field. One Sold-To Party can have multiple Ship-To
Parties. If there are many Ship-To parties associated with one Sold-To Party, a
dialog box will pop up in the contract screen. You select the relevant Ship-To
Party which the Sold-To Party has instructed you to ship the products at.

Press F4 or button on the Sold-To Party field to search for your relevant
Sold-To Party. You can search by Search term maintained in the customer
master or also by Name. To remain specific with your search, enter
relevant Sales Organization so that only customer maintained in your Sales
Organization will be displayed.

If you decide to find the customer with name, enter customer’s first name
with * before and after the name. This is called a wild-card search.

Example: *demo*.
Search for Customer

Hint: You can use asterisk to be more specific in your search and
press Enter to get output of your search.

Search Results

Double click on the required Customer line in the contract to select that
customer.
Sold-To Party Populated into the Contract

Press Enter once you have selected the Sold-To Party, so that the SAP
system can accept the customer and proceed with the contract creation.

Select Ship-To Party

Since this customer has two Ship-To Parties, a dialog box is popped up to
select the relevant one which your customer, Sold-To, has instructed. Double
click on the required one and same will be selected.
Sold-To and Ship-To Partied were Successfully Populated

If there’s only one Ship-To Party, once you press Enter, Ship-To Party will
automatically get populated. Since the contract is a legal document, system
will prompt to populate validity dates:

Validity of Contract

Populate contract validity dates, i.e. Valid From and Valid To dates:
Select Validity Dates using Calendar

SAP SD Contract Screen Navigation

This part is called Header of the Contract:

Header of SAP SD Contract

This part is called Overview of the Contract:

Overview of SAP SD Contract

This is called the line item part of the contract where materials which are
inquired by the customer are to be maintained:

Line Items of SAP SD Contract

Add Items to SAP SD Contract

Use F4 to search for the material the same way we did for customer and
repeat the same process for entering multiple line items (if required).

Search for Materials to Populate Items of the Contract

Material was Found

Double click on the desired material to select.

Material Number was Added to the Contract

If you press Enter without entering the Quantity, the system will prompt:
SAP Asks to Enter Quantity of Material (at the bottom of the screen)

Enter Quantity.

Information about Material Entered into the Contract

Incompletion Log for Contract

Go to Edit > Incompletion Log or Ctrl+F8 to see if the contract Created is

Complete.
Check Incompletion Log of Contract

If there is anything or fields which needs to be populated, the system will

prompt and new window will be displayed.

Incompletion Log Results

Press or F2 to complete the missing data.

The System Shows the Screen with Missing Data

Enter the PO Number. PO stands for Purchase Order and it is a number of

customer’s purchase order.
Enter PO Number in Contract

Press or F5 to populate the next data, if any. Once all the required data
is populated, the system shall take you to the main screen of the contract.
SAP SD Contract is Complete

If the document is complete, the system will prompt the relevant message

accordingly. .

Navigating Contract Screens – Header

Press button to view header details in the contract.

Header of Contract

Here you can see relevant sales data:

 User who created this Contract

 Sales Organization, Distribution Channel and Division information

 Sales Office

 Sales Group

 Date on which the document is created

 Document Currency
  Customer Group

 Price list

 Sales District

Sales Data in SAP SD Contract Header

Press tab to see the partners which the customer is having:

Business Partners in the Header of the Contract

Press to know the current status of the contract.

Status Screen of SAP Contract Header

Press to go back to the main contract screen.

Navigating Contract Screens – Item

If you want to see the pricing of the individual material, select that line item

and press this conditions button .

Pricing Conditions Button

Here, you can see the pricing of the selected product.

Prices for Contract Item

Press to view material’s details.

Sales B Tab of Contract Item

Press to go back to the main contract screen.

Save the Contract

Once you have created the contract and satisfied with the information
populated, press or CTRL+S to save the contract.

SAP SD Contract was Successfully Saved

Did you like this tutorial? Have any questions or comments? We would love
to hear your feedback in the comments section below. It’d be a big help for
us, and hopefully it’s something we can address for you in improvement of
our free SAP SD tutorials.

How to Create SAP SD Sales Order

In this SAP SD tutorial, we will talk about sales

orders in SAP Sales and Distribution. You will learn what SAP SD sales
orders are used for and how to create them. We will provide screenshots and
guidance that are relevant for this process.
Sales Orders in SAP SD

Previously, a customer might have inquired for the product which you have
maintained in the inquiry or might have asked for a quotation (which is valid
for a particular time period) or have opted for a long term contract either
quantity or value.

Creation of a sales order is the first step in SAP SD for capturing of the
actual sales. This means that customer has agreed to the price which you
have offered during the inquiry and quotation phase(s).

In SAP SD, a sales order can be created either with or without reference to:

 Quotation, provided it is within the validity period

 Contracts, value & quantity, provided the same are within validity the
dates or the value or quantity has not exceeded from the contract
terms

How to Create SAP SD Sales Order

SAP’s main screen once you have logged on to SAP:

SAP ERP Easy Access

In SAP, in order to reach to a particular transaction, you have the following

options:
  Either enter the T-Code (transaction code) directly in the transaction
bar in the SAP screen

SAP Transaction Bar

 Or navigate through the ‘Navigation Tree’

SAP Menu Tree

The following is the illustration on how to fetch sales order window/screen:

 Enter VA01 in Transaction Command Field for creating Sales Order or

 Enter VA01 Transaction

 Navigate through ‘Tree’

VA01 Transaction for Creation of Quotation in SAP Menu

Once you have entered the Sales Order: Creation Initial screen, you have to
select relevant Order Type. Each order type has its own functionality and
viewing based on the configuration done at the SAP backend.

Select Relevant Order Types:

Create Sales Order – Initial Screen

Please note, any field having a ‘tick mark’ means

its mandatory and it has to be populated else system would not allow you to
proceed further.

In order to opt for a required Order type, either press F4 on the respective
field and it will show all LoVs (List of Values).
List with Sales Order Types

Select the relevant Order type to proceed to the next step.

 Create a
Standard Sales Order with Type “OR”

Populate Sales Area with your relevant Sales Organization, Distribution

Channel, and Division.

Fill in Sales
Area Data

Hint: if you populate your relevant Sales Organization, Distribution Channel

and Division first and then opt for the relevant Order type, only Sales
Document types relevant for the selected Sales Organization, Distribution
Channel and Division will be displayed in LoV.

If you want to create Sales Order with reference to a Quotation or a Contract,

press: button.

Create Sales Order with Reference

Once it is pressed, select the relevant tab.

 Crea
te with Reference – Options

Enter the document number and either , if there are multiple

items in the referencing document and you want to select a particular item

which should be copied in the sales order or select directly. In our

case, we are going to Create Sales Order directly. Press Enter to continue and
enter in the Sales Order screen. Once you press Enter, you will enter into the
sales order screen.

Master Data Involved when Creating Sales Order

The following master data is involved when creating a sales order. This
master data fetches relevant information and populates the relevant fields
accordingly:
Customer Master Data

 Name of the customer

 Address

 Location

 Taxation details

 Geographical location according to company’s sales geographical

structure

 Shipping details

 Billing details as in terms of payment

 Partners associated with the customer, i.e. ship-to party, bill-to party,
payer, etc.

Material Master Data

 Material description

 Unit of measure (Stock Keeping Unit – SKU)

 Transportation group

 Loading group (fork lifter, manual handling etc)

 Taxation information

Customer Material Info Records

 Used to maintain customer relevant SKU codes which are mapped with
the Company’s code

Condition Master (Pricing)

 Base price of the product or special price for a particular customer

 Discount(s) on the product or special discount offered to one customer

 Freight

 Taxes

Output Master
  The process of communication with customer once the sales order is
created via printout of the sales order which is sent to customer by
post, fax or email.

Partners Involved in Creation of Sales Order

 Sold-To Party: the entity that inquired the goods

 Ship-To Party: to whom goods are be delivered to

 Bill-To Party: the entity that is responsible to receive the bill

 Payer: the entity responsible for the payment

Entering the Customer – Sold-To and Ship-To

Create Standard SAP Order

You can see Sold-to Party and Ship-to Party fields at the top left of the screen
just below Standard Order field. One Sold-to Party can have multiple Ship-To
Parties. If there are many Ship-To parties associated with one Sold-to Party, a
dialog box will pop up in the order screen. You need to select the relevant
Ship-to Party which the Sold-to Party has instructed you to ship the products
at.

Press F4 or button on the Sold-to Party field to search for your relevant
Sold-to Party. You can search by Search Term maintained in the customer
master data or also by Name. To remain specific with your search, enter
relevant Sales Organization, so that only customers maintained in your sales
organization will be displayed.
Search for Customer (Sold-To Party)

Hint: You can use asterisk to be more specific in your search and
press Enter to get output of your search.

Search Results

Double click on the required customer line in order to select that customer.
Sold-To Party Populated into the Sales Order

Press Enter once you have selected the Sold-to Party, so that the SAP system
can accept the customer and proceed with the sales order creation.

Select Ship-To Part for Sales Order

Since this customer has two Ship-to Parties, a dialog box is popped up to
select the relevant one which your customer, Sold-to, has instructed. Double
click on the required one and the same will be selected.

Sold-To Party and Ship-To Party were Selected

If there’s only one Ship-to Party, once you press Enter, Ship-to Party will be
automatically populated.

SAP SD Sales Order Screen Interface

This part is called header of the sales order:

SAP SD Sales Order Header

This part is called overview of the sales order:

SAP SD Sales Order Overview

This is called the line item part of the Sales Order where Materials to be sold
are maintained.

Line Items in SAP Sales Order

Add Materials to SAP Sales Order

Use F4 to search for the material the same way we did for the customer and
repeat the same process for entering multiple line items (if required).
Search for Materials

Select Materials to be Added to Sales Order

Double click on the desired material to select.

Material Number was Added to Sales Order

Enter quantity, if you press Enter after selecting the material, without
entering the Quantity, the system will prompt.

Enter Quantity Warning

Incompletion Log for SAP Sales Orders

Go to Edit > Incompletion Log to see if the sales order created is complete.
Open Incompletion Log

If the document is complete, the system will prompt the relevant message

accordingly .

Our Sales Order is Complete (No Mandatory Information is Missing)

Sales Order Interface – Header

Press button to view header details in the sales order.

Display Document Header Details

Here you can see the relevant sales data:

 User who created this sales order

 Sales Organization, Distribution Channel and Division information

 Sales Office

 Sales Group

 Date on which the document is created

 Document Currency

 Customer Group

 Price list

 Sales District

Press tab to see the partners which the customer is having:

SAP Sales Order Header Partners

Press to know the current status of the order:

SAP SD Sales Order Status

Press to go back to the main sales order screen.

Sales Order Interface – Item

If you want to see the pricing of the individual material, select that line item

and press this conditions button :

Item Conditions Button

Here, you can see the pricing of the selected product:

Sales Order Item Pricing Details

Press to view finished goods material’s details:

Detailed Information about a Material

Press to see if this material is confirmed and available to be

delivered on the required date of delivery.

Schedule Lines in Sales Order

Press to go back to main sales order screen.

The Main Sales Order Screen

Save Sales Order

Once you have created the Sales order and satisfied with entering the
information, press to save the sales order. Once you press Save, if the
customer’s credit limit is exceeded, a pop will be displayed.

Credit Limit Check for

Customer

If the customer is a cash customer or if the credit customer has no

outstanding this pop-up window of credit check will not be displayed and

sales order will be saved directly. Press on the dialog box to continue
and the order will be saved by generating a unique sales order number.
Sales Order was Successfully Saved

Did you like this tutorial? Have any questions or comments? We would love
to hear your feedback in the comments section below. It’d be a big help for
us, and hopefully it’s something we can address for you in improvement of
our free SAP SD tutorials.