SAP SD Tutorial
SAP SD Tutorial
SAP Sales and Distribution is one of the key components of SAP ERP
system and is used to manage shipping, billing, selling and
transportation of products and services in an organization.
SAP Sales and Distribution module is a part of SAP Logistics module
that manages customer relationship starting from raising a quotation to
sales order and billing of the product or service. This module is closely
integrated with other modules like SAP Material Management and PP.
Sales Support
Shipping of Material
Sales Activities
Billing related
Transportation of products
Credit Management
Foreign Trade
Information System
The next level is distribution channel, which tells the medium by which
the products and services are distributed by an organization to its end
users. Division in an organizational structure, which represents a
product or service line in a single organization.
A sales area is known as entity, which is required to process an order in
a company. It comprises of sales organization, distribution channel and
a division.
In SAP SD organizational structure, each sales organization is assigned
to a company code. Then the distribution channel and divisions are
assigned to sales organization and all of these comprise to make a sales
area.
In the first step of an SD organizational structure, sales organization is
assigned to a company code and then is to define a distribution channel
and then division to a sales organization.
The following diagram shows the organizational structure of a Sales and
Distribution module
Material management
Material Management is one of the key modules in SAP ERP System and
covers the day to day business operations related to inventory and
Document Flow
This shows how a transaction in one system effects the details in other
systems of an SAP module.
Consider the following transaction
Example
In case of a standard sales order in the SD module, you create an
outbound goods delivery to the customer. Availability check and retail
price of that product is checked in the MM module. Here, movement
601 takes place. This movement is configured in the MM and movement
of goods hit some G/L account in FI. Every such movement of goods
hits General Ledger account in FI.
Process Chain
SD module is closely integrated with other SAP modules. The following
tables will give you a brief idea on how SD is linked with other modules
Sales Order
Link Points
Module Involved
Availability Check
MM
Credit Check
FI
Costing
CO/MM
Tax Determination
FI
Transfer of Requirements
PP/MM
Billing
Integration Point
Module
Debit A/R
FI/CO
Credit Revenue
FI/CO
FI/CO
Milestone Billing
PS
Module
Availability Check
MM
Credit Check
FI
Reduces Stock
MM
Reduces Inventory
FI/CO
Reduces Eliminated
PP/MM
Master data is one of the key factors in Sales and Distribution module.
There are two levels of masters in SD.
The first level master includes
Customer Master
Material Master
Pricing Conditions
Output condition
Key
Description
KNA1
KUNNR
General Information
KNB1
KUNNR,BUKRS
Company Code
KNVV
VKOGRG,VTWEG,SPART,KUNNR
Sales Area
KNBK
KUNNR,BANKS,BANKL,BANKN
Bank Data
VCNUM
CCINS,CCNUM
Credit Card
VCKUN
CCINS,CCNUM,KUNNR
KNVK
PARNR
Contact Person
KNVP
VKORG,VTWEG,SPART,PARVW,KUNNR
Partner Functions
1
XD01, XD02, XD03
Used to create/change/display customer centrally
2
VD01,VD02,VD03
3
FD01,FD02,FD03
Used to create/change/display customer company code
4
XD04
Display change documents
5
XD05
Display change documentsUsed to block Customer Global, order,
delivery, billing, sales area, etc.
6
XD06
Used for deletion
7
XD07
Change Account Group
8
VAP1
T-Code: XD01/VD01/FD01
Note that if you use
XD01 This Includes sales area in the customer master and data is stored
in tables KNA1, KNB1 and KNVV.
VD01 This includes sales area & data, which will be stored in tables
KNA1, KNB1 and KNVV and there is no company code data in this.
FD01 This is company code level & data is stored in tables KNA1 and
KNB1.
Sales Organization
Distribution Channel
Division
A new window will open to enter the customer master data. This
customer master data has 3 key sections
Note that this region fields define the tax calculation like VAT, CST, etc.
The next step is to go to Control Data and enter the following details.
Then you have to enter the particulars in Payment Transaction tab and
enter the details of Bank City, Bank Key, Bank Account and Account
Holder Name. You can also add more details by clicking on the Bank
data button.
The next step is to go to the Sales Area data and enter the details
Shipping Data, Customer Pricing and Partner Functions, etc.
Next is to click on the Save icon at the top and you will get a
confirmation that the customer has been created with #.
Sold-To-Party
Ship-To Party
Bill-To-Party
Payer
Forwarding Agent
Employee Responsible
Sales Personnel
and
their
Partner Function
Master Record
Customer number
customer master
record
Sold-to Party(SP)
Customer(CU
)
Ship-to Party(SH)
Bill-to Party(BP)
Payer(PY)
Vendor(V)
Human
Resource(HR)
Forwarding
agent(fwdg agent)
Vendor number
Employee
responsible(ER)
Personnel number
Vendor master
record
Personnel master
record
Sales Personnel(SP)
Contact
Person(CP)
Contact Person(CP)
Contact Partner
number
(created in
customer master
record,no master
record of its own)
A new window will open. Select the Partner Object and click the Change
button.
Enter the name and partner determination procedure and double click
on Partner Function in left pane.
Enter the Partner function details Name, Type, etc. KU- stands for
Customer.
A new window will open. Enter the document date, Plant and storage
location, Movement type, etc.
Select the Movement type from the list and Press Enter after selecting
all the details.
A new window will open. Enter the material code and quantity for which
stock needs to be created and then click Save.
A new window will open. Enter the Industry Sector and Material Type.
Click Select View(s).
Select Sales Org Data 1, Sales Org Data 2, Sales: General/Plant Data
and click the Green tick mark below.
Then a new window will open. Enter the Plant, Sales Organization and
Distribution Channel for which the material is to be extended. Repeated
entries have to be made for various materials with the above
selections.
A new window will open, then you can enter the following details
Material Details
Division
Material Group
Tax
Gen Item Category Group and Item Category Group Generally for
Finished Products value NORM will default in both the fields.
Name
X001
Domestic Customers
X002
Export Customers
X003
Then again a new window will open. Enter the following details in it.
Once you select the field status, a new window will open. Then, select
Account Management from the selected group and the click
Reconciliation account Req. Entry
Once this is done, click Save to save this configuration. Similarly, you
can also create X002, X003 for other customers.
All Sales activities in this SAP SD system can be divided into presales
and post sales activities. Pre-sales activities are classified as
activities that take place before a product is sold to the customer. In
contrast, post-sales activities are those that take place after a
product is sold.
There are two types of pre-sales activities in Sales and Distribution
Inquiries
Inquiries are the inquiries received from customers like, if a product is
available, costing of product, delivery of a product, etc.
Different T-Codes
Quotation
A quotation is a legal document to the customer for delivery of goods
and services.
Different T-Codes
Create Inquiries
An Inquiry is not a legal document and is used to record the
information about delivery or services from customers. The information
that is captured using an inquiry is related to materials and quality of
goods.
Menu Path: Logistics Sales and Distribution Sales Inquiry
Create T-Code: VA11
When you run this T-code, you need to fill the below information to
create an inquiry.
Field
Data
Inquiry type
Sales organization
4000
Distribution channel
40
Division
00
Enter the Quotation Type, then you can enter the Sales Organization,
Distribution Channel, Division and then click Create with Reference.
A new window will open, then enter the Inquiry number and click Copy.
It will fetch all the details from that Inquiry document.
Then another new window will open. Enter the following details
VBKA
TKSF
TVC6
TVC5
VC01
OV4Z
VC05
VC00
VOC1
Item Categories
Copy Control
In this chapter, we will discuss how to process sales orders in SAP SD.
Example
There is a customer telephone inquiry in the system. Then the
customer requests a quotation, which can be created by referring to the
same inquiry. Next, assume that the customer places an order on the
basis of that quotation and a sales order is created by copying the
information from this quotation and if at all there are any modifications
that are required. The merchandise is then shipped and the bill is sent
to this customer. After the delivery of goods, this customer raises a
claim of damaged articles. Then a delivery can be created free of
charge with reference to the sales order.
All these sales documents starting with the inquiry, quotation, raising
a sales order, delivery of goods, billing document to customer and the
free of charge delivery forms a document flow. The data flow from one
document to another removes or decreases the practice of manual
processing and helps in simpler problem resolution.
A new window will open, then you can enter the below details
Enter the Order Type, below order types are available. Enter the sales
organization, distribution channel and division. You can also click on
Create with Reference option to open a Sales order with reference to an
inquiry or even a quotation.
CR
Credit Memo
GK
Master Contact
KA
Consignment Pick-up
KB
Consignment fill-up
KE
Consignment issue
FD
CQ
Quantity contract
SD
KR
Consignment returns
DR
PV
Item Proposal
RE
Returns
RK
RZ
SO
Rush order
OR
Standard Order
Once you click on Create with Reference, a new window will open. Enter
the Quotation number and click on Copy.
In VA01, it allows you to enter header data and item data. Then to
enter Header data, click on Goto Tab Header and select header data.
The next step is to click on the Goto tab Item select item data and
once done click on OK.
After this you can click on the save icon at the top. You will get a
confirmation message
There are different types of sales documents that can be defined in a
SAP system. These include
Credit Memo
Debit Memo
Standard Order
Then you can enter the mandatory fields in this new window.
Is it a return item?
Description of an Item
TAN
Standard Item
TAB
TAS
TAD
Service
TANN
TATX
Text item
AFX
Inquiry item
AGX
Quotation item
The list of all existing items will be displayed. Then you can click on
New Entries to create a new item.
A new window will now open, then you can enter the below details
Sales Document Type Item cat.group Item Category (This will be
default as per the Sales Document Type. You can change it with a
manual item category.) Manual item category (You can use manual
item category in place of default item category)
Once all the details are mentioned, click on the save icon.
In a sales document, items are divided into one or more schedule lines.
These lines vary as per the date and quantity. You can define multiple
control elements for these schedule lines. Items with schedule lines are
only copied to the SAP system. These schedule lines contain important
information like delivery dates and quantity, available inventory, etc.
You can define different schedule line categories as per the sales
document
type
and
item
category.
The
various control
elements related to general data and shipping data are used for
categorizing schedule lines. You can also define new schedule lines and
the system administrator manages data related to control elements.
You can copy an existing schedule line category and make changes as per
the requirement.
No delivery of an item.
No availability check.
Information purpose.
Quotation
No Delivery.
No Movement.
Order
Return
A new window will open, then you can click on New Entries.
Once the details are entered, then click on the save icon at the top.
SPRO IMG Sales and Distribution Sales Maintain copy control for
sales documents.
You can also use the following T-Codes to find copy controls in a system
VTAA This control is used for copying from sales order to sales order
VTLA This control is used control for copying from sales order to delivery
VTFL This control is used control for copying from delivery to billing doc
VTFF This control is used control for copying from billing doc to billing
doc
VTAF This control is used control for copying from billing doc to sales
order
VTFA This control is used control for copying from sales order to billing
doc
Header level.
Item level.
Schedule line level (Only relevant, when you copy from a sales order to
sales order or from billing doc to sales order).
The Header Copy Control routine is required when you copy data from
header of a source document to the header of a target document.
T-Code: VTLA to check copy control between sales order and delivery.
You can check the source of a routing by selecting the routine and press
F4. To open it in the ABAP editor, you can press F5. Copy controls for an
item can be checked by a double click on the item folder and choosing
an item category and then clicking on the Display view item overview
screen. You can then use the F1 key to find out how each routine is
employed. The target documents will be assigned an updated reference
status in the copied item.
The following types of status can be possible for an item
Select an Item To find the status of the line item. This field is used
VBUP-RFSTA.
You can also define a sales activity or a sales document as incomplete.
How the system behaves when you create such document in system is
shown below.
The following entries can be made to the system for incomplete data
Partner Data
Use T-Code: OVA2 or the below menu path to display the incomplete
group
SPRO IMG Sales and Distribution Basic Functions log of
incomplete item Define Incompleteness Procedure Execute
A new window will now open and you can check the list of this
incomplete group.
Then a new window will open. Please select Assign procedures to Sales
Document Type.
You can now view document configuration using a VOV8, but it can only
be changed here. If you dont want to populate a procedure cos of an
incomplete field, you can select IC check box.
TVUVG Groups
TVUV Procedures
TVUVF Fields
TVUVFC Fcodes
Example
Consider a case when customer orders specific quantity of a product on
a particular day. Various factors like customer, product, order quantity
and date tells the final price to that customer. This information is stored
in the system as master data in the form of condition records.
There are various pricing elements like prices, surcharges, discounts,
and taxes, which are defined in SAP system as condition types. To
manage pricing information for a pricing element in a system, you have
to create condition records.
Manual Pricing
While processing a sales order, you can also manipulate the pricing at
the item as well as the header level. Manual processing of a price
screen is dependent on individual condition types. During a Sales Order
processing using manual processing for a condition type, you can
perform the below activities
contains a conditional table 005 for this purpose. Key of table 005
includes the following field
Customer
Material
Sales Organization
Distribution Channel
In the first two fields, the customer and material determines the
relationship between customers and specific materials. The last two
fields are used to identify organization data in a SAP system. Now, if
sales department in an organization enters a condition record for
discount to one privileged customer, the system will automatically make
use of the condition table 005 to store the record and define a key. Any
standard SAP system contains predefined condition tables and specifies
for each access in a predefined access sequence.
A new window will open and then you can select from create, change or
display field as per the requirement. To create a new table, you have to
select create and click on Choose.
Enter condition table in table field and then you can enter the existing
table to copy the condition.
Once data is copied, you can modify the table as per the business
requirement.
Condition type is defined as specific features of daily pricing activities in
a SAP system. Using the condition type, you can also put different
condition types for each pricing, discounts on goods, tax and surcharge
that occurs in business transactions.
Example
Condition type allows you to define the discount for special material.
This can be specified in the system to calculate discount as an amount
or it can calculate discount in terms of percentage. In case you have to
use both discount types, two separate condition types have to be
defined in the system.
There are predefined condition types in a standard system
S.No
1
PR00
Price
2
K004
Material Discount
3
K005
Customer-specific material discount
4
K007
Customer discount
5
K020
Price group discount
6
KF00
Freight surcharge(by item)
7
UTX1
State tax
8
UTX2
Country tax
9
UTX3
City tax
A new window will open. Select maintain and then change as per the
requirement and click on Choose.
Once you select Maintain Condition Types and click on Choose, a new
window will open. Select a condition type and click on copy.
Enter the name of condition type. Fill the details for Control Data
Structure Condition
Plus/Minus
Once all the details are entered, click on the save icon at the top.
This is the search strategy, which is used by the system to find valid
data for a particular condition type. It tells about the order in which a
system searches for the data. An access sequence consists of one or
more access sequences. It helps the system to search first, second and
so on until it finds a valid record. An access sequence is defined for
each condition type where a condition record is created.
You can create or maintain access sequence in customizing
Go to SPRO IMG Sales and Distribution Basic Functions
Pricing Pricing Control Define Access Sequences.
Is it a return item?
T-Code: OVKO
Material Price
By default, the system takes gross price in the automatic pricing for a
business transaction. In a standard SAP system, system takes customer
specific price. If no such price exists, system checks for a valid price list
type. If this is also not present in the system, it takes the material
price.
Material Prices
When material price is created, it means the price for a specific
material or pricing for a specific material type. A combination of sales
organization and distribution channel for which material price is valid.
Example Price list can be created as per the customer type like
Retail, Wholesale customer and so on. Price list can also be created as
per currency type.
Customer Specific Prices You can also create pricing records for
specific customers. You can assign pricing record for specific
combination of customers and material type.
Kind of Discount
Customer(K007)
Percentage
Material(K004)
Absolute
Price group(K020)
Percentage
Material group(K029)
Customer/material(K005)
Absolute
Customer/material group(K030)
Percentage
Price group/material(K032)
Absolute
Percentage
Rebate processing(BO01)
Group rebate(%)
Rebate processing(BO02)
Material rebate(fixed)
Rebate processing(BO03)
Customer rebate(%)
Inter-company processing(PI01)
Intercompany discount(fixed)
Inter-company processing(PI02)
Intercompany discount(%)
Invoice lists(RL00)
Factoring discount
Invoice lists(MW15)
While creating a condition record, you can use any of above standard
discount types. While doing automatic pricing, system checks for the
discount that satisfies a certain condition and it checks for a valid
condition record. If a discount refers to a group like a material group or
price groups, that particular group must be assigned to a relevant
customer or material master record before automatic pricing is done in
the system.
A Product Proposal helps an organization to increase the sales by
recommending other products to the already added products or by
replacing the one already added. The products recommended can be
cheaper, expensive or similar to the product that are requested by the
customer.
An Automatic Product Proposal is one of the most powerful tool used in
online marketing of products. Product Proposals can be mapped to
specific requirement of business partners to match their market
requirement. You can use Top n Product list to provide the list of
products proposed. The data in a product proposal is integrated with
SAP CRM module to get product master data.
Cross Selling The product association rules are defined for products and
relationship between different products. Each rule contains a leading
product and the dependent products to be suggested with these products.
This allows you to offer other products with the one already added by a
customer.
Up-Selling and Down Selling If you are selling a specific product you
can define other products to be proposed. These proposed products are
defined using down selling and up selling rules.
Top N Product Lists With the use of SAP NetWeaver BI component, you
can define a list of top products for a target group.
Listing You can create a material list for specific customers, which allows
those customers to order only those materials which are maintained in the
list.
It will show you the existing material listing and exclusion as per the
selection.
Cash invoice and billing can be printed immediately from the order. No
receivables are entered for customer as invoice amount is paid in cash
and directly entered to a cash account.
Rush Order
In this order type, delivery of goods is picked by the customer or you
deliver the goods on the same day, when the order is placed.
Scheduling Agreement
A scheduling agreement is defined as an external agreement with the
customer having details of quantity of goods and delivery dates. This
information is mentioned as schedule lines in a standard system. These
schedule lines can be created with the scheduling agreement or you can
also create these at a later stage. The deliveries are processed for a
scheduling agreement in similar way it is processed for a normal
delivery. Once the delivery is done, system updates the delivered
quantity in the scheduling agreement.
Consignment Fill-up
In this sales order type, goods are produced and moved to a warehouse
or provided to an agent to deliver to end customer.
Consignment Issue
In this order type, whenever there is requirement from a customer, he
will move to the warehouse or contact the agent and this will be treated
as a sale.
Third-Party Order
In a third-party order type, products are not delivered to the customer
and then you have to handover the order to a third-party vendor, who
is responsible to deliver the items to the customer and generate the
bill.
Credit Memo This is done when the customer wants a refund for the
delivered goods. The system creates a credit memo sales document for the
customer with reference to the sales order.
Creating a return request in the system: T-Code: VA01. Then enter the
details as shown below
PO Number
PO Date
Order Reason
These outline agreements are valid up to a certain period of time and cover
a certain predefined quantity or value.
Contract Agreement
A Contract is basically a long term outline agreement between the
vendor and the ordering party. It is made on predefined material or
services to be given over a certain framework of time.
There are two types of contract
On the SAP Menu screen, select Create execute icon by following the
above path.
Fill in all the necessary details like agreement validity start date, end
date, and pay terms (i.e. terms of payment).
Then provide the material number along with target quantity. If the
quantity contract or net price of value contract and material group.
Click save. A new Contract will be created.
Scheduling Agreement
A Scheduling Agreement is a long term outline agreement between the
vendor and the ordering party. This is done over a predefined material
or service, which are procured on predetermined dates over an already
agreed framework of time. A Scheduling agreement can be created by
the following two steps
Provide the name of that vendor, agreement type (LP for scheduling
agreement), purchasing organization, purchasing group, plant along
with agreement date.
Fill in all the necessary details like agreement validity start date, end
date, payment terms.
Provide material number along with target quantity, net price, currency
and material group. Click save. A new Scheduling Agreement will be
created.
Provide a delivery schedule date and target quantity. Click save. The
schedule lines are now maintained for the scheduling agreement.
T-Code: MEQ1
On the Sap Menu screen, select Maintain execute icon by following the
above step.
Enter the material number and plant for which quota arrangement
needs to be maintained.
Enter the names of the vendors along with all the assigned and
allocated quantity to them. Click save. Quota arrangement is now
maintained for this particular material.
In SAP Sales and Distribution module, along with the processing of
normal sales orders, you can also create special business processes like
configurable products, items manufactured on order, etc.
Consignments Processing
Consignments are known as products, which are owned by your
company and are located at the client location. It is not required for the
customer to pay for these goods, until they are moved from the
Customer has to only pay for goods, which are removed from the stock and
only for the quantity taken.
A new window will open, then you can enter the following details
Order Quantity
Consignment Issue
This is for the goods that are issued to the customer from a warehouse.
T-Code: VA01
Order Type: CI
Sales Order Type: KE
Click save.
Consignment Return
This is done for the goods returned from the customer.
T-Code: VA01
Order Type: CONR
Sales Order Type: KA
Click save, once all the details are entered.
Consignment Pickup
When a customer requests return of a product to the company, this is
known as a consignment pick up.
T-Code: VA01
Order Type: CP
Sales Order Type: KR
Once these details are entered, click save.
hipping is defined as a very important activity in the sales process. It comes under the
logistics chain and guarantees customer service and distribution of goods. It is a
significant component of Sales and Distribution module. It is used to perform outbound
delivery and other shipping activities like picking and packing of the goods.
In the shipping process, there are a few key sub processes, which include
Picking of items
Shipping communication
You can also assign several shipping points to one plant, but each point should have a
different loading equipment or a different processing time.
Other Organization units are warehouse#, type of storage, etc.
There is a warehouse# that is assigned to a plant and storage location. There can be
multiple storage locations in a plant and they can point to one warehouse.
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Shipping Type,
Description, and
Click save.
A new window will open and it will show the list of existing routes,
Click New Entries
Enter the details in new window along with route stages and define.
Once these details are entered click save.
Route
Stage Category
Departure Point
To check the material and order to ensure if the outbound delivery of goods
is possible.
Enter the Shipping Point from shipping data. In the Purchase Order tab,
enter PO number due for delivery and quantity.
Text Management
Printing
Validation
You can post quantity difference in the inbound delivery for outbound
delivery to post change in delivery. Using text management, you can
make the following changes to the delivery document like
Display
Change
Delete
Save
If you want to create and save new texts for a particular delivery, this
can also be done.
Printing is done in EWM to print delivery notes. You can create an
outbound delivery order or an outbound delivery. Validation in EWM is
used to verify the delivery document, if it is complete and can be
further processed in the system.
Manual
Automatic
The Post Good Issue (PGI) is the last step in delivery processing and in
this goods ownership is moved to the customer and stock is updated as
per delivery.
These functions can be performed in the system using the following
steps
Create Packaging
Click save.
Enter Warehouse #
Enter Plant
Enter Delivery
Press Enter.
Click save.
Click save.
Material Document
Accounting Document
n SAP Sales and Distribution module, billing is known as the final stage
for executing business transactions. When an order is processed and
Pricing Functions.
Types of Billing
Match codes
Number Range
Blocking Reasons
Date of Billing
Billing value
Currency
Pricing Elements
Material Number
Quantity of goods
While doing the billing processing, you create, change and delete the
billing documents like invoices, credit memos, debit memos, etc.
Billing Processing also includes creation of billing documents as per the
below reference
To a sales order
To a delivery
To external transactions
A new window will open, then you can enter the Billing Type, Date and
enter the document number you want to create. Click save.
Invoice Split for several billing documents for one or more sales document.
Billing Plan
A billing plan in SAP SD is defined as a plan with individual billing dates
for goods and services and it doesnt depend on the delivery of goods.
Using this bill plan, you can bill for a service or product at regular time
intervals or at specific dates defined in the system in advance.
As per the business transactions, a system allows you to process any of
the billing plan type. There are two types of billing plan
Milestone Billing
Periodic Billing
amount in multiple
there is a milestone
charged as per the
bill plan. Milestone
A new window will open, then you can select the relevant option related
to the condition table and click Choose.
1
V/12
Account Determination : Create tables
2
V/13
3
V/14
Account determination : display tables
4
OV25
Field catalog : Allowed fields for the tables
The first step is to define and assign an account key and then
1
KOMKCV
Account Determination Communication Header
2
KOMPCV
Account Determination Communication Item
Example
A customers credit limit is set as 10000 and he makes an order worth
6000 and payment term of 30 days at 4%. Now if payment is made
within 30 days, customer will get 4% discount on the payment.
Why do we need Credit Management?
Credit management allows you to reduce the credit risk by setting up
the credit limit for the customers. You can get warning alerts for a
customer or a group of customers.
Open Document
Open Deliveries
Open Billings
Open Items
Horizon Period
Now if the horizon period is defined as 4 months, the system will not
consider these documents for 4 months.
A new window will open, then you can set the automatic credit check.
Client
A client is an independent organizational unit and legal unit. Generic
data and multiple tables are saved at client level for multiple
organizational structure. Client is known at the top level in an
enterprise structure. You can assign multiple company codes to a client.
Company Code
A company code is defined as an independent legal unit in an
organization. Company code is an organizational unit created in Finance
Accounting. At the company code level, you can create P/L statements
and Balance sheets. You can assign multiple company codes to a client.
Sales Organization
A Sales organization is used to distribute products and services. You
can assign a single or multiple sales organization to a company code.
You can assign one or more Plant to Sales organization and it is not
unique, so you can have one plant assigned to multiple Sales
organizations. Sales organizations can be used to perform search
criteria to list sales documents and to create deliveries and billing
worklist. You can mention different output types for sales and billing
document for each sales organization.
Distribution Channel
It is defined as a medium, which is used to send goods and services to
the customer. You can assign a distribution channel to a single or many
Sales Organizations. You can set distribution channel as per companys
market policy or as per an internal organization. You can use master
data in one distribution channel to other distribution channel. You can
assign a sales office to a distribution channel.
Division
A division is defined as a product line or grouping of services or
material. You can assign a division to one or more sales organization. A
product is always assigned to one division. You can assign a Sales
Office to a division. There are various organization units like Sales Area,
Warehouse, delivery point, shipping point etc. that can be mapped to
one or more SAP modules.
SAP Sales and Distribution is one of the key components of SAP ERP
system and is used to manage shipping, billing, selling and
transportation of products and services in an organization.
SAP Sales and Distribution module is a part of SAP Logistics module
that manages customer relationship starting from raising a quotation to
sales order and billing of the product or service. This module is closely
integrated with other modules like SAP Material Management and PP.
Sales Support
Shipping of Material
Sales Activities
Billing related
Transportation of products
Credit Management
Foreign Trade
Information System
help in making the reporting process easy and ideally it should have a
single sales organization.
The next level is distribution channel, which tells the medium by which
the products and services are distributed by an organization to its end
users. Division in an organizational structure, which represents a
product or service line in a single organization.
A sales area is known as entity, which is required to process an order in
a company. It comprises of sales organization, distribution channel and
a division.
In SAP SD organizational structure, each sales organization is assigned
to a company code. Then the distribution channel and divisions are
assigned to sales organization and all of these comprise to make a sales
area.
In the first step of an SD organizational structure, sales organization is
assigned to a company code and then is to define a distribution channel
and then division to a sales organization.
The following diagram shows the organizational structure of a Sales and
Distribution module
Material management
Material Management is one of the key modules in SAP ERP System and
covers the day to day business operations related to inventory and
procurement. This module is closely integrated with other modules of
R/3 systems like Finance Accounting and Controlling, Sales and
Distribution, Quality Management, Product Planning.
Document Flow
This shows how a transaction in one system effects the details in other
systems of an SAP module.
Consider the following transaction
Example
In case of a standard sales order in the SD module, you create an
outbound goods delivery to the customer. Availability check and retail
price of that product is checked in the MM module. Here, movement
601 takes place. This movement is configured in the MM and movement
of goods hit some G/L account in FI. Every such movement of goods
hits General Ledger account in FI.
Process Chain
SD module is closely integrated with other SAP modules. The following
tables will give you a brief idea on how SD is linked with other modules
Sales Order
Link Points
Module Involved
Availability Check
MM
Credit Check
FI
Costing
CO/MM
Tax Determination
FI
Transfer of Requirements
PP/MM
Billing
Integration Point
Module
Debit A/R
FI/CO
Credit Revenue
FI/CO
FI/CO
Milestone Billing
PS
Module
Availability Check
MM
Credit Check
FI
Reduces Stock
MM
Reduces Inventory
FI/CO
Reduces Eliminated
PP/MM
Master data is one of the key factors in Sales and Distribution module.
There are two levels of masters in SD.
The first level master includes
Customer Master
Material Master
Pricing Conditions
Output condition
Key
Description
KNA1
KUNNR
General Information
KNB1
KUNNR,BUKRS
Company Code
KNVV
VKOGRG,VTWEG,SPART,KUNNR
Sales Area
KNBK
KUNNR,BANKS,BANKL,BANKN
Bank Data
VCNUM
CCINS,CCNUM
Credit Card
VCKUN
CCINS,CCNUM,KUNNR
KNVK
PARNR
Contact Person
KNVP
VKORG,VTWEG,SPART,PARVW,KUNNR
Partner Functions
1
XD01, XD02, XD03
2
VD01,VD02,VD03
Used to create/change/display customer sales area
3
FD01,FD02,FD03
Used to create/change/display customer company code
4
XD04
Display change documents
5
XD05
Display change documentsUsed to block Customer Global, order,
delivery, billing, sales area, etc.
6
XD06
Used for deletion
7
XD07
Change Account Group
8
VAP1
Create Contact Person
T-Code: XD01/VD01/FD01
Note that if you use
XD01 This Includes sales area in the customer master and data is stored
in tables KNA1, KNB1 and KNVV.
VD01 This includes sales area & data, which will be stored in tables
KNA1, KNB1 and KNVV and there is no company code data in this.
FD01 This is company code level & data is stored in tables KNA1 and
KNB1.
Sales Organization
Distribution Channel
Division
A new window will open to enter the customer master data. This
customer master data has 3 key sections
Note that this region fields define the tax calculation like VAT, CST, etc.
The next step is to go to Control Data and enter the following details.
Then you have to enter the particulars in Payment Transaction tab and
enter the details of Bank City, Bank Key, Bank Account and Account
Holder Name. You can also add more details by clicking on the Bank
data button.
The next step is to go to the Sales Area data and enter the details
Shipping Data, Customer Pricing and Partner Functions, etc.
Next is to click on the Save icon at the top and you will get a
confirmation that the customer has been created with #.
Sold-To-Party
Ship-To Party
Bill-To-Party
Payer
Forwarding Agent
Employee Responsible
Sales Personnel
and
their
Partner Function
Master Record
Customer number
customer master
record
Sold-to Party(SP)
Customer(CU
)
Ship-to Party(SH)
Bill-to Party(BP)
Payer(PY)
Vendor(V)
Human
Resource(HR)
Forwarding
agent(fwdg agent)
Vendor number
Employee
responsible(ER)
Personnel number
Vendor master
record
Personnel master
record
Sales Personnel(SP)
Contact
Person(CP)
Contact Person(CP)
Contact Partner
number
(created in
customer master
record,no master
record of its own)
A new window will open. Select the Partner Object and click the Change
button.
Enter the name and partner determination procedure and double click
on Partner Function in left pane.
Enter the Partner function details Name, Type, etc. KU- stands for
Customer.
Suppose you have implemented SAP in your company and now you
want to put all your stocks in the SD system. For this, use T-Code:
MB1C Movement Type: 561 this is for Good receipts without
reference.
Movement Type: 501 this is used for receiving goods with a
Purchase Order.
A new window will open. Enter the document date, Plant and storage
location, Movement type, etc.
Select the Movement type from the list and Press Enter after selecting
all the details.
A new window will open. Enter the material code and quantity for which
stock needs to be created and then click Save.
A new window will open. Enter the Industry Sector and Material Type.
Click Select View(s).
Select Sales Org Data 1, Sales Org Data 2, Sales: General/Plant Data
and click the Green tick mark below.
Then a new window will open. Enter the Plant, Sales Organization and
Distribution Channel for which the material is to be extended. Repeated
entries have to be made for various materials with the above
selections.
A new window will open, then you can enter the following details
Material Details
Division
Material Group
Tax
Gen Item Category Group and Item Category Group Generally for
Finished Products value NORM will default in both the fields.
Name
X001
Domestic Customers
X002
Export Customers
X003
Then again a new window will open. Enter the following details in it.
Once you select the field status, a new window will open. Then, select
Account Management from the selected group and the click
Reconciliation account Req. Entry
Once this is done, click Save to save this configuration. Similarly, you
can also create X002, X003 for other customers.
SAP SD - Pre Sales Activities
All Sales activities in this SAP SD system can be divided into presales
and post sales activities. Pre-sales activities are classified as
activities that take place before a product is sold to the customer. In
contrast, post-sales activities are those that take place after a
product is sold.
Inquiries
Inquiries are the inquiries received from customers like, if a product is
available, costing of product, delivery of a product, etc.
Different T-Codes
Quotation
A quotation is a legal document to the customer for delivery of goods
and services.
Different T-Codes
Create Inquiries
An Inquiry is not a legal document and is used to record the
information about delivery or services from customers. The information
that is captured using an inquiry is related to materials and quality of
goods.
Data
Inquiry type
Sales organization
4000
Distribution channel
40
Division
00
Enter the Quotation Type, then you can enter the Sales Organization,
Distribution Channel, Division and then click Create with Reference.
A new window will open, then enter the Inquiry number and click Copy.
It will fetch all the details from that Inquiry document.
Then another new window will open. Enter the following details
VBKA
TKSF
TVC6
TVC5
VC01
OV4Z
VC05
VC00
VOC1
Item Categories
Copy Control
In this chapter, we will discuss how to process sales orders in SAP SD.
Example
There is a customer telephone inquiry in the system. Then the
customer requests a quotation, which can be created by referring to the
same inquiry. Next, assume that the customer places an order on the
basis of that quotation and a sales order is created by copying the
information from this quotation and if at all there are any modifications
that are required. The merchandise is then shipped and the bill is sent
to this customer. After the delivery of goods, this customer raises a
claim of damaged articles. Then a delivery can be created free of
charge with reference to the sales order.
All these sales documents starting with the inquiry, quotation, raising
a sales order, delivery of goods, billing document to customer and the
free of charge delivery forms a document flow. The data flow from one
document to another removes or decreases the practice of manual
processing and helps in simpler problem resolution.
SAP SD - Creation of Sales Order
item can be derived via a full condition and can be valid for the entire
sales order.
You can divide an item to multiple billing plan deadlines and each of
them will tell you the time, when a fixed amount of the item is to be
billed.
A new window will open, then you can enter the below details
Enter the Order Type, below order types are available. Enter the sales
organization, distribution channel and division. You can also click on
Create with Reference option to open a Sales order with reference to an
inquiry or even a quotation.
CR
Credit Memo
GK
Master Contact
KA
Consignment Pick-up
KB
Consignment fill-up
KE
Consignment issue
FD
CQ
Quantity contract
SD
KR
Consignment returns
DR
PV
Item Proposal
RE
Returns
RK
RZ
SO
Rush order
OR
Standard Order
Once you click on Create with Reference, a new window will open. Enter
the Quotation number and click on Copy.
In VA01, it allows you to enter header data and item data. Then to
enter Header data, click on Goto Tab Header and select header data.
The next step is to click on the Goto tab Item select item data and
once done click on OK.
After this you can click on the save icon at the top. You will get a
confirmation message
Credit Memo
Debit Memo
Standard Order
Then you can enter the mandatory fields in this new window.
Is it a return item?
Description of an Item
TAN
Standard Item
TAB
TAS
TAD
Service
TANN
TATX
Text item
AFX
Inquiry item
AGX
Quotation item
The list of all existing items will be displayed. Then you can click on
New Entries to create a new item.
A new window will now open, then you can enter the below details
Sales Document Type Item cat.group Item Category (This will be
default as per the Sales Document Type. You can change it with a
manual item category.) Manual item category (You can use manual
item category in place of default item category)
Once all the details are mentioned, click on the save icon.
In a sales document, items are divided into one or more schedule lines.
These lines vary as per the date and quantity. You can define multiple
control elements for these schedule lines. Items with schedule lines are
only copied to the SAP system. These schedule lines contain important
information like delivery dates and quantity, available inventory, etc.
You can define different schedule line categories as per the sales
document
type
and
item
category.
The
various control
elements related to general data and shipping data are used for
categorizing schedule lines. You can also define new schedule lines and
the system administrator manages data related to control elements.
You can copy an existing schedule line category and make changes as per
the requirement.
No delivery of an item.
No availability check.
Information purpose.
Quotation
No Delivery.
No Movement.
Order
Return
A new window will open, then you can click on New Entries.
Once the details are entered, then click on the save icon at the top.
SPRO IMG Sales and Distribution Sales Maintain copy control for
sales documents.
You can also use the following T-Codes to find copy controls in a system
VTAA This control is used for copying from sales order to sales order
VTLA This control is used control for copying from sales order to delivery
VTFL This control is used control for copying from delivery to billing doc
VTFF This control is used control for copying from billing doc to billing
doc
VTAF This control is used control for copying from billing doc to sales
order
VTFA This control is used control for copying from sales order to billing
doc
Header level.
Item level.
Schedule line level (Only relevant, when you copy from a sales order to
sales order or from billing doc to sales order).
The Header Copy Control routine is required when you copy data from
header of a source document to the header of a target document.
T-Code: VTLA to check copy control between sales order and delivery.
You can check the source of a routing by selecting the routine and press
F4. To open it in the ABAP editor, you can press F5. Copy controls for an
item can be checked by a double click on the item folder and choosing
an item category and then clicking on the Display view item overview
screen. You can then use the F1 key to find out how each routine is
employed. The target documents will be assigned an updated reference
status in the copied item.
The following types of status can be possible for an item
Select an Item To find the status of the line item. This field is used
VBUP-RFSTA.
SAP SD - Log of INComplete Items
Partner Data
Use T-Code: OVA2 or the below menu path to display the incomplete
group
SPRO IMG Sales and Distribution Basic Functions log of
incomplete item Define Incompleteness Procedure Execute
A new window will now open and you can check the list of this
incomplete group.
Then a new window will open. Please select Assign procedures to Sales
Document Type.
You can now view document configuration using a VOV8, but it can only
be changed here. If you dont want to populate a procedure cos of an
incomplete field, you can select IC check box.
TVUVG Groups
TVUV Procedures
TVUVF Fields
TVUVFC Fcodes
SAP SD - Pricing
Example
Consider a case when customer orders specific quantity of a product on
a particular day. Various factors like customer, product, order quantity
and date tells the final price to that customer. This information is stored
in the system as master data in the form of condition records.
There are various pricing elements like prices, surcharges, discounts,
and taxes, which are defined in SAP system as condition types. To
manage pricing information for a pricing element in a system, you have
to create condition records.
Manual Pricing
While processing a sales order, you can also manipulate the pricing at
the item as well as the header level. Manual processing of a price
screen is dependent on individual condition types. During a Sales Order
processing using manual processing for a condition type, you can
perform the below activities
Customer
Material
Sales Organization
Distribution Channel
In the first two fields, the customer and material determines the
relationship between customers and specific materials. The last two
fields are used to identify organization data in a SAP system. Now, if
sales department in an organization enters a condition record for
discount to one privileged customer, the system will automatically make
use of the condition table 005 to store the record and define a key. Any
standard SAP system contains predefined condition tables and specifies
for each access in a predefined access sequence.
A new window will open and then you can select from create, change or
display field as per the requirement. To create a new table, you have to
select create and click on Choose.
Enter condition table in table field and then you can enter the existing
table to copy the condition.
Once data is copied, you can modify the table as per the business
requirement.
SAP SD - Condition Techniques & Types
Example
Condition type allows you to define the discount for special material.
This can be specified in the system to calculate discount as an amount
or it can calculate discount in terms of percentage. In case you have to
use both discount types, two separate condition types have to be
defined in the system.
There are predefined condition types in a standard system
S.No
1
PR00
Price
2
K004
Material Discount
3
K005
4
K007
Customer discount
5
K020
Price group discount
6
KF00
Freight surcharge(by item)
7
UTX1
State tax
8
UTX2
Country tax
9
UTX3
City tax
A new window will open. Select maintain and then change as per the
requirement and click on Choose.
Once you select Maintain Condition Types and click on Choose, a new
window will open. Select a condition type and click on copy.
Enter the name of condition type. Fill the details for Control Data
Structure Condition
Plus/Minus
Once all the details are entered, click on the save icon at the top.
SAP SD - Access Sequence
This is the search strategy, which is used by the system to find valid
data for a particular condition type. It tells about the order in which a
system searches for the data. An access sequence consists of one or
more access sequences. It helps the system to search first, second and
so on until it finds a valid record. An access sequence is defined for
each condition type where a condition record is created.
You can create or maintain access sequence in customizing
Go to SPRO IMG Sales and Distribution Basic Functions
Pricing Pricing Control Define Access Sequences.
Is it a return item?
T-Code: OVKO
Material Price
By default, the system takes gross price in the automatic pricing for a
business transaction. In a standard SAP system, system takes customer
specific price. If no such price exists, system checks for a valid price list
type. If this is also not present in the system, it takes the material
price.
Material Prices
When material price is created, it means the price for a specific
material or pricing for a specific material type. A combination of sales
organization and distribution channel for which material price is valid.
Kind of Discount
Customer(K007)
Percentage
Material(K004)
Absolute
Price group(K020)
Percentage
Material group(K029)
Customer/material(K005)
Absolute
Customer/material group(K030)
Percentage
Price group/material(K032)
Absolute
Percentage
Rebate processing(BO01)
Group rebate(%)
Rebate processing(BO02)
Material rebate(fixed)
Rebate processing(BO03)
Customer rebate(%)
Inter-company processing(PI01)
Intercompany discount(fixed)
Inter-company processing(PI02)
Intercompany discount(%)
Invoice lists(RL00)
Factoring discount
Invoice lists(MW15)
While creating a condition record, you can use any of above standard
discount types. While doing automatic pricing, system checks for the
discount that satisfies a certain condition and it checks for a valid
condition record. If a discount refers to a group like a material group or
price groups, that particular group must be assigned to a relevant
customer or material master record before automatic pricing is done in
the system.
SAP SD - Product Proposals
Cross Selling The product association rules are defined for products and
relationship between different products. Each rule contains a leading
product and the dependent products to be suggested with these products.
This allows you to offer other products with the one already added by a
customer.
Up-Selling and Down Selling If you are selling a specific product you
can define other products to be proposed. These proposed products are
defined using down selling and up selling rules.
Top N Product Lists With the use of SAP NetWeaver BI component, you
can define a list of top products for a target group.
Listing You can create a material list for specific customers, which allows
those customers to order only those materials which are maintained in the
list.
It will show you the existing material listing and exclusion as per the
selection.
Rush Order
In this order type, delivery of goods is picked by the customer or you
deliver the goods on the same day, when the order is placed.
Scheduling Agreement
A scheduling agreement is defined as an external agreement with the
customer having details of quantity of goods and delivery dates. This
information is mentioned as schedule lines in a standard system. These
schedule lines can be created with the scheduling agreement or you can
also create these at a later stage. The deliveries are processed for a
scheduling agreement in similar way it is processed for a normal
delivery. Once the delivery is done, system updates the delivered
quantity in the scheduling agreement.
Consignment Fill-up
In this sales order type, goods are produced and moved to a warehouse
or provided to an agent to deliver to end customer.
Consignment Issue
In this order type, whenever there is requirement from a customer, he
will move to the warehouse or contact the agent and this will be treated
as a sale.
Third-Party Order
In a third-party order type, products are not delivered to the customer
and then you have to handover the order to a third-party vendor, who
is responsible to deliver the items to the customer and generate the
bill.
SAP SD - Free of Charge Deliveries
Credit Memo This is done when the customer wants a refund for the
delivered goods. The system creates a credit memo sales document for the
customer with reference to the sales order.
Creating a return request in the system: T-Code: VA01. Then enter the
details as shown below
PO Number
PO Date
Order Reason
These outline agreements are valid up to a certain period of time and cover
a certain predefined quantity or value.
Contract Agreement
A Contract is basically a long term outline agreement between the
vendor and the ordering party. It is made on predefined material or
services to be given over a certain framework of time.
There are two types of contract
T-code: ME31K
On the SAP Menu screen, select Create execute icon by following the
above path.
Fill in all the necessary details like agreement validity start date, end
date, and pay terms (i.e. terms of payment).
Then provide the material number along with target quantity. If the
quantity contract or net price of value contract and material group.
Click save. A new Contract will be created.
Scheduling Agreement
A Scheduling Agreement is a long term outline agreement between the
vendor and the ordering party. This is done over a predefined material
or service, which are procured on predetermined dates over an already
agreed framework of time. A Scheduling agreement can be created by
the following two steps
Provide the name of that vendor, agreement type (LP for scheduling
agreement), purchasing organization, purchasing group, plant along
with agreement date.
Fill in all the necessary details like agreement validity start date, end
date, payment terms.
Provide material number along with target quantity, net price, currency
and material group. Click save. A new Scheduling Agreement will be
created.
Provide a delivery schedule date and target quantity. Click save. The
schedule lines are now maintained for the scheduling agreement.
Enter the material number and plant for which quota arrangement
needs to be maintained.
Enter the names of the vendors along with all the assigned and
allocated quantity to them. Click save. Quota arrangement is now
maintained for this particular material.
Consignments Processing
Consignments are known as products, which are owned by your
company and are located at the client location. It is not required for the
customer to pay for these goods, until they are moved from the
consignment stock. The customers can also return the products in
consignment stock, which are not required.
Customer has to only pay for goods, which are removed from the stock and
only for the quantity taken.
A new window will open, then you can enter the following details
Order Quantity
Consignment Issue
This is for the goods that are issued to the customer from a warehouse.
T-Code: VA01
Order Type: CI
Sales Order Type: KE
Click save.
Consignment Return
This is done for the goods returned from the customer.
T-Code: VA01
Order Type: CONR
Sales Order Type: KA
Click save, once all the details are entered.
Consignment Pickup
When a customer requests return of a product to the company, this is
known as a consignment pick up.
T-Code: VA01
Order Type: CP
Sales Order Type: KR
Once these details are entered, click save.
SAP SD - Shipping
Picking of items
Shipping communication
You can also assign several shipping points to one plant, but each point
should have a different loading equipment or a different processing
time.
Other Organization units are warehouse#, type of storage, etc.
There is a warehouse# that is assigned to a plant and storage location.
There can be multiple storage locations in a plant and they can point to
one warehouse.
Shipping Point & Route Determination
Shipping Type,
Description, and
Click save.
A new window will open and it will show the list of existing routes,
Click New Entries
Enter the details in new window along with route stages and define.
Once these details are entered click save.
Route
Stage Category
Departure Point
To check the material and order to ensure if the outbound delivery of goods
is possible.
Enter the Shipping Point from shipping data. In the Purchase Order tab,
enter PO number due for delivery and quantity.
Text Management
Printing
Validation
You can post quantity difference in the inbound delivery for outbound
delivery to post change in delivery. Using text management, you can
make the following changes to the delivery document like
Display
Change
Delete
Save
If you want to create and save new texts for a particular delivery, this
can also be done.
Printing is done in EWM to print delivery notes. You can create an
outbound delivery order or an outbound delivery. Validation in EWM is
Manual
Automatic
The Post Good Issue (PGI) is the last step in delivery processing and in
this goods ownership is moved to the customer and stock is updated as
per delivery.
These functions can be performed in the system using the following
steps
Create Packaging
Click save.
Enter Warehouse #
Enter Plant
Enter Delivery
Press Enter.
Click save.
Click save.
Material Document
Accounting Document
In SAP Sales and Distribution module, billing is known as the final stage
for executing business transactions. When an order is processed and
delivery is made, billing information is available at each stage of this
order processing.
Billing contains the following components
Pricing Functions.
Types of Billing
Match codes
Number Range
Blocking Reasons
and list of items under it. Billing documents are normally controlled by
the billing type.
In a billing document header, it contains general data like
Date of Billing
Billing value
Currency
Pricing Elements
Material Number
Quantity of goods
While doing the billing processing, you create, change and delete the
billing documents like invoices, credit memos, debit memos, etc.
Billing Processing also includes creation of billing documents as per the
below reference
To a sales order
To a delivery
To external transactions
A new window will open, then you can enter the Billing Type, Date and
enter the document number you want to create. Click save.
Invoice Split for several billing documents for one or more sales document.
Billing Plan
A billing plan in SAP SD is defined as a plan with individual billing dates
for goods and services and it doesnt depend on the delivery of goods.
Using this bill plan, you can bill for a service or product at regular time
intervals or at specific dates defined in the system in advance.
As per the business transactions, a system allows you to process any of
the billing plan type. There are two types of billing plan
Milestone Billing
Periodic Billing
amount in multiple
there is a milestone
charged as per the
bill plan. Milestone
A new window will open, then you can select the relevant option related
to the condition table and click Choose.
1
V/12
Account Determination : Create tables
2
V/13
3
V/14
Account determination : display tables
4
OV25
Field catalog : Allowed fields for the tables
The first step is to define and assign an account key and then
1
KOMKCV
Account Determination Communication Header
2
KOMPCV
Account Determination Communication Item
Example
A customers credit limit is set as 10000 and he makes an order worth
6000 and payment term of 30 days at 4%. Now if payment is made
within 30 days, customer will get 4% discount on the payment.
Why do we need Credit Management?
Credit management allows you to reduce the credit risk by setting up
the credit limit for the customers. You can get warning alerts for a
customer or a group of customers.
Open Document
Open Deliveries
Open Billings
Open Items
Horizon Period
Now if the horizon period is defined as 4 months, the system will not
consider these documents for 4 months.
A new window will open, then you can set the automatic credit check.
Client
A client is an independent organizational unit and legal unit. Generic
data and multiple tables are saved at client level for multiple
organizational structure. Client is known at the top level in an
enterprise structure. You can assign multiple company codes to a client.
Company Code
A company code is defined as an independent legal unit in an
organization. Company code is an organizational unit created in Finance
Accounting. At the company code level, you can create P/L statements
and Balance sheets. You can assign multiple company codes to a client.
Sales Organization
A Sales organization is used to distribute products and services. You
can assign a single or multiple sales organization to a company code.
You can assign one or more Plant to Sales organization and it is not
unique, so you can have one plant assigned to multiple Sales
organizations. Sales organizations can be used to perform search
criteria to list sales documents and to create deliveries and billing
worklist. You can mention different output types for sales and billing
document for each sales organization.
Distribution Channel
It is defined as a medium, which is used to send goods and services to
the customer. You can assign a distribution channel to a single or many
Sales Organizations. You can set distribution channel as per companys
market policy or as per an internal organization. You can use master
data in one distribution channel to other distribution channel. You can
assign a sales office to a distribution channel.
Division
A division is defined as a product line or grouping of services or
material. You can assign a division to one or more sales organization. A
product is always assigned to one division. You can assign a Sales
Office to a division. There are various organization units like Sales Area,
Warehouse, delivery point, shipping point etc. that can be mapped to
one or more SAP modules.