SAP SD Tutorial – Sales & Distribution (SAP SD) Module Training

SAP SD Training – Sales & Distribution Tutorial

SAP SD Tutorial – Free SAP Sales & Distribution (SAP SD) module
training tutorials and materials for beginning learners and
professional learners. Learn how to implement and configure SAP
sales and distribution (SD) module step by step with real time
project scenarios and issues. This SAP SD training tutorials are
specially designed for all beginners and professional learners.

SAP SD stands for Sales and Distribution, it is one of the core

module of logistics that deals with various business process to
fulfill the customer orders starting from receiving the order of a
product till the product is delivered to the customer. The main
advantages of SAP R/3 is its integration with internal and external
modules. SAP SD module can be integrate with other modules
of SAP Financial Accounting, Controlling, SAP Material
Management, Production Planning (PP) and so in.

SAP SD Enterprise Structure

An enterprise structure of an organization is divided into various

small functional units for smooth functioning of business process.
The organizational units when grouped together, form the structure
of an organization. The important organizations units of SAP SD
module are

1. Sales Organization

2. Distribution Channel

3. Division

4. Sales Group

5. Sales Office

6. Sales Area
Sales Organization: – Sales Organization is the highest level
organizational unit in in Sales and distribution module, which is
responsible for all the activities of sales and services that happens
in the company.

Distribution channel: – The process of selling or distributing the

goods and services to the customers is known as distribution
channel.

Division: – Division is a range of product or product-line.

Sales Office: – Sales Office is a location of an organizational unit

where the group of people work together and perform the sales.

Sales Group: – Sales Group is a group of people working within a

sales office for difference activities.

Sales Area: – Sales area plays an important role in SAP SD,

whenever you process sales it should be rotated through the
particular sales area. It is a combination of Sales organization +
Division + Distribution.

Features of SAP SD Module

The important features of SAP SD module are

Price and Taxation: – It evaluates the price of a goods and services

under various condition types such as rebate or discount granted to
a customer.

Availability Check: – Check the availability of a product in the

warehouse of an organization.

Credit Management: – It is process of managing the credit limits of

the customers, credit management can be figured in two ways i.e.
simple credit check and automatic credit check.

Billing & Invoice: – Generate bills or invoice after a sales order for a
product or services are placed.

Material Determination: – Enable to determine the details of

materials on the basis of a specific condition type

Account Determination: – Helps to determine the details of

customers on the basis of a specific condition type.

What you learn in this SAP SD tutorials

 Basic concepts of SAP sales & distribution module.

 Implementation of SD module and integration with other SAP

modules.

 SD interview questions for Job.

 SD Certification Guide.

 Real time SAP SD project issues and scenarios with examples.

SAP SD Course Syllabus

Refer below SAP SD tutorials as per syllabus and learn SD module

step by step with screen shots, examples and scenarios.

SAP SD – Enterprise Structure

1. Define Company Code

 2. Assign company code to company

3. Define sales organization

4. Assign sales organization to company code

5. Define division

6. Define Plant in SAP

7. Assign division to sales organization

8. Define distribution channel

9. Assign distribution channel to sales organization

10. Define sales office in SD

11. Assign sales office to sales area

12. Define sales group

13. Assign sales group to sales office

14. Define shipping point in SD

15. Maintain Storage Location in SAP

16. Assign shipping point to plant.

17. Maintain Loading Point

18. Maintain Transportation planning point

SAP SD – Customer Master Data

1. How to define customer account groups in SAP

2. Define number ranges for customer account groups

3. Assign number ranges to customer account groups

4. Define tolerance group for customers

5. Define sundry debtor account

6. Setup partner determination procedure

7. Create customer master record in SAP.

SAP SD – Sales Documents

1. Define sales order reasons

 2. Define purchase order types

3. Define item categories in SAP

4. Assign item categories

5. Define item category groups

6. Define schedule line categories

7. Assign schedule line categories

8. Define sales document type

SAP SD – Pricing

1. An overview of pricing procedure

2. Define condition tables

3. Define access sequences

4. Create condition types

5. Define pricing procedure

6. Define pricing procedure determination

Credit Management

1. Define credit control area

2. Assign company code to credit control area

3. Assign sales area to credit control area

4. Define risk categories

5. Define credit groups

6. Credit limit check for order types/ delivery types

7. Maintain credit limits for customers.

Continue to read and download SAP SD tutorial for free.

SAP SD Tutorial – Sales & Distribution (SAP SD) Module Training

SAP SD Training – Sales & Distribution Tutorial

SAP SD Tutorial – Free SAP Sales & Distribution (SAP SD) module training
tutorials and materials for beginning learners and professional learners.
Learn how to implement and configure SAP sales and distribution (SD)
module step by step with real time project scenarios and issues. This SAP SD
training tutorials are specially designed for all beginners and professional
learners.

SAP SD stands for Sales and Distribution, it is one of the core module of
logistics that deals with various business process to fulfill the customer
orders starting from receiving the order of a product till the product is
delivered to the customer. The main advantages of SAP R/3 is its integration
with internal and external modules. SAP SD module can be integrate with
other modules of SAP Financial Accounting, Controlling, SAP Material
Management, Production Planning (PP) and so in.

SAP SD Enterprise Structure

An enterprise structure of an organization is divided into various small

functional units for smooth functioning of business process. The
organizational units when grouped together, form the structure of an
organization. The important organizations units of SAP SD module are

1. Sales Organization

2. Distribution Channel

3. Division

4. Sales Group

5. Sales Office

6. Sales Area
Sales Organization: – Sales Organization is the highest level organizational
unit in in Sales and distribution module, which is responsible for all the
activities of sales and services that happens in the company.

Distribution channel: – The process of selling or distributing the goods and

services to the customers is known as distribution channel.

Division: – Division is a range of product or product-line.

Sales Office: – Sales Office is a location of an organizational unit where the

group of people work together and perform the sales.

Sales Group: – Sales Group is a group of people working within a sales

office for difference activities.

Sales Area: – Sales area plays an important role in SAP SD, whenever you
process sales it should be rotated through the particular sales area. It is a
combination of Sales organization + Division + Distribution.

Features of SAP SD Module

The important features of SAP SD module are

Price and Taxation: – It evaluates the price of a goods and services under
various condition types such as rebate or discount granted to a customer.

Availability Check: – Check the availability of a product in the warehouse

of an organization.

Credit Management: – It is process of managing the credit limits of the

customers, credit management can be figured in two ways i.e. simple credit
check and automatic credit check.

Billing & Invoice: – Generate bills or invoice after a sales order for a
product or services are placed.

Material Determination: – Enable to determine the details of materials on

the basis of a specific condition type

Account Determination: – Helps to determine the details of customers on

the basis of a specific condition type.

What you learn in this SAP SD tutorials

 Basic concepts of SAP sales & distribution module.

 Implementation of SD module and integration with other SAP modules.

 SD interview questions for Job.

 SD Certification Guide.

 Real time SAP SD project issues and scenarios with examples.

SAP SD Course Syllabus

Refer below SAP SD tutorials as per syllabus and learn SD module step by
step with screen shots, examples and scenarios.

SAP SD – Enterprise Structure

1. Define Company Code

2. Assign company code to company

3. Define sales organization

4. Assign sales organization to company code

5. Define division
 6. Define Plant in SAP

7. Assign division to sales organization

8. Define distribution channel

9. Assign distribution channel to sales organization

10. Define sales office in SD

11. Assign sales office to sales area

12. Define sales group

13. Assign sales group to sales office

14. Define shipping point in SD

15. Maintain Storage Location in SAP

16. Assign shipping point to plant.

17. Maintain Loading Point

18. Maintain Transportation planning point

SAP SD – Customer Master Data

1. How to define customer account groups in SAP

2. Define number ranges for customer account groups

3. Assign number ranges to customer account groups

4. Define tolerance group for customers

5. Define sundry debtor account

6. Setup partner determination procedure

7. Create customer master record in SAP.

SAP SD – Sales Documents

1. Define sales order reasons

2. Define purchase order types

3. Define item categories in SAP

4. Assign item categories

5. Define item category groups

 6. Define schedule line categories

7. Assign schedule line categories

8. Define sales document type

SAP SD – Pricing

1. An overview of pricing procedure

2. Define condition tables

3. Define access sequences

4. Create condition types

5. Define pricing procedure

6. Define pricing procedure determination

Credit Management

1. Define credit control area

2. Assign company code to credit control area

3. Assign sales area to credit control area

4. Define risk categories

5. Define credit groups

6. Credit limit check for order types/ delivery types

7. Maintain credit limits for customers.

Continue to read and download SAP SD tutorial for free.

What is Company Code? & How to Define Company Code in SAP

In this SAP tutorials we will learn what is company code in SAP and how to
define company code “TK01″(TK Software limited) step by step using
recommended configuration settings.

What is Company Code in SAP

Company code is an independent organizational unit which is registered

under companies act 1956. Under company code you can generate
individual financial statements like profit & loss account and balance sheets.

 The definition of company code in SAP is mandatory.

  It is mandatory to create at least one company code for implementing
the SAP financial accounting module.

You can define company code in SAP by using navigation method or

transaction code.

 Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial

Accounting – Edit Copy, Delete, Check company code

 Transaction code: – OX02

 Database Table: – T880

How to define company code in SAP

Step 1) Enter transaction code “OX02” in the SAP commend field and enter
to continue.

Step 2) On change view “Company Code”: Overview screen, displays with

the list of company codes with their names. Click on “New Entries” button to
create new company code as per organizational requirements.

Step 3) On new entries company code screen, update the following details.

 Company code: – Enter 4 digits alphanumeric code that identifies

company in SAP

 Company name: – Update the name of the company

 City: – Enter the name of city in which the company is

located. spaceman slot

 Country: – Enter the name of country. Press F4 for possible entries and
you can select the code from the list.
  Currency: – This currency is also called as home currency or local
currency.

 Language: – Our default language key: English (EN).

Step 4) After updating all the required details, click on save button to save
the configured data.

Now the system prompts the another screen to update the full address of
company. Update all the required address details of company and press enter
to save the data.
Step 5) Now you get the transport request number, save the request. slot
garansi kekalahan
Successfully company code “TK01” is created in SAP system. Continue to
learn how to assign company code to company in SAP.

How to Assign Company Code to Company in SAP

How to Assign Company Code to Company in SAP

In this SAP tutorial you will learn procedure to assign company code to
company in SAP. After successfully creation of company code and company
in SAP, you need to assign company code company in SAP system.

Why Assignment

The link between company and company code in SAP is established through
a assignment of company code to company.

Configuration steps

You can assign by using one of the navigation method or transaction code.

 Navigation: – SPRO – IMG – Enterprise Structure – Assignment

– Financial Accounting – Assign company code to company

 Transaction code : – OX16

Step 1) Enter Transaction code “OX16” in the SAP command field and press
enter to continue.

Step 2) On change view “Assign company code -> Company”:Overview

screen, click on position button and give your company code key. Now your
company code displays at the window.
Step 3) Now update your company key “TKART” in the given field.

Step 4) After assignment of company code to company, click on save button

and save the configured data.
Successfully we have assigned company code “TK01” to company code
“TKART” in SAP systems.

How to Define Sales Organization in SAP.

In this SAP training tutorials, you will learn how to to crate sales organization
in SAP step by step.

What is Sales Organization in SAP?

In SAP, sales organization represents an organizational unit used to controls

to distribution and sales of goods & services in the organization. The
organization is used to negotiate the sales terms and conditions with the
customers. So sales organization is responsible for all business transactions
related to sales, you need to assign sales organization to at-least
one company code in SAP.

Sales organization -Implementation Process

You can define sales organization in a SAP system by using one of the
following navigation method.

 Transaction code: – OVX5

 Menu Path: –SPRO (tcode) –> SAP Customizing Implementation Guide –

> Enterprise Structure –> Definition –> Sales and distribution –>
Define copy, delete, check sales organization.

Step 1) Enter T-code “OVX5” in SAP command field as shown below and
press enter to continue.

Step 2) On change view sales organizations overview screen, click on new

entries button to create a new sales organization unit as per the
requirements.
Step 3) On new entries screen, update the following details.

 Sales organization: – Update the four digits key that identifies the sales
organization in SAP.

 Description: – Enter the descriptive text of sales organization.

 Detailed Information: – Under detailed information, you can required

details like currency, Address text, letter header text, footer header
text, Sales.org calendar, etc.

 ALE: Data for purchase order: – Under this option, you are required to
enter the details like Purchase organization, Purchasing group, Plant,
storage location, etc.

 After updating the details, press enter.

Step 4) Now you are required to update the sales organization address
details.
Step 5) After maintaining all the required details, click on save button.

Now you are prompted for customizing request, create new request or
choose existing request and save the data.
Successfully we have defined sales organization in SAP systems.

Assign Sales Organization to Company Code in SAP

Assigning a Sales Organization to a Company Code in SAP is essential for

integrating sales operations with financial accounting. This assignment
ensures that all sales transactions are accurately recorded under the
appropriate legal entity, facilitating precise financial reporting and
compliance.

In this SAP SD tutorials, you will learn how to assign sales organization to
company code in SAP. In our previous training we have learned how to define
shipping points in SAP.

The link between sales organization and company code in SAP is established
through the assignment of sales organization to company code.

Step-by-Step Process: Assigning Sales Organization to Company

Code in SAP

Navigation Path

Use the following methods to access the assignment configuration:

 Transaction Code: SPRO

 Menu Path: SPRO > SAP Customizing Implementation Guide >

Enterprise Structure > Assignment > Sales & Distribution >
Assign Sales Organization to Company Code

Step 1: Enter Transaction Code SPRO

1. Log in to your SAP system.

 2. In the Command Field, type SPRO and press Enter. Image
Description:

o This image shows the SAP command field where the user
types SPRO to open the SAP Customization menu.

o The field is highlighted for clarity.

Step 2: Open SAP Reference IMG

1. On the Customizing Execute Project screen, click on SAP

Reference IMG. Image Description:

o The image highlights the “SAP Reference IMG” button in the

customization menu.

o This button directs users to the main configuration guide.

Step 3: Navigate to the Assignment Option

1. In the SAP Reference IMG, follow the path: Enterprise Structure >
Assignment > Sales & Distribution > Assign Sales Organization
to Company Code

2. Double-click on “Assign Sales Organization to Company

Code”. Image Description:

o The navigation path in the SAP IMG is clearly shown, with the
option “Assign Sales Organization to Company Code” highlighted.

o The image helps users locate the correct option quickly.

Step 4: Assign Sales Organization

1. On the Change View: Assignment Sales Organization – Company

Code screen:
 o Click on the Position button.

o Enter the Sales Organization Key you wish to assign.

Image Description:

o This image shows the screen where the user can assign a Sales
Organization to a Company Code.

o The “Position” button is highlighted, guiding the user to focus on

this key step.

Step 5: Enter the Company Code

1. In the CoCd (Company Code) field, type the Company Code

(e.g., TK01) and press Enter. Image Description:
 o The image focuses on the field where the Company Code is
entered.

o The example Company Code “TK01” is visible for demonstration.

Step 6: Save the Assignment

1. Click the Save button to finalize the assignment. Image Description:

o The save button is highlighted, prompting the user to save their

configuration changes.

o This step ensures that the new settings are stored in the system.

2. SAP will prompt you to select a Customizing Request.

3. Choose the appropriate request and confirm.

How to Define Division in SAP | Create Divisions

In this SAP tutorials, you will learn how to create division in SAP step by step.
In our previous training we have learned how to define distribution
channels in SAP SD.

What is Division?

The range of materials for which the company is carrying out the sales are
divided in to different divisions. A division is a product line of
the company where the materials are produced or goods and services are
provided.

Division SAP implementation process

Divisi Name
 on

Products
1D
Division

2D IT Services

3D Software

4D Accessories

You can configure divisions in SAP by using one of the navigation method.

 Transaction code: – OVXB

 Menu Path: – SPRO -> SAP IMG -> Enterprise Structure –> Definition –>
Logistics -General -> Define copy, delete, check division.

Step 1) Enter T-code “OVXB” in the SAP command field as shown below and
press enter to continue.

Step 2) On change view divisions overview screen, click on new entries

button to new divisions as per the organizational requirements.

Step 3) On new entries division overview screen, update the following

details.

 Division: – Enter the key that identifies the division in SAP. You are
allowed to update only two digits alphanumeric key.
  Name: – Update the descriptive text of division.

Step 4) After maintaining the divisions as per the requirements, click on

save button and choose your customizing request and save the configured
data.

Successfully we have defined division in SAP systems.

How to Define Plant in SAP | What is Plant?

What is Plant in SAP?

In SAP, Plant is an independent, physical and highest organizational unit in

MM module. It can be operational unit or manufacturing unit or a sales
branch of an organization. From material management view, plant can be
defined as a location that holds valued stock.

Plant is responsible for planning, procurement, distribution of goods &

services to customers or other resources of an organization under one
company code.

How to Create Plant in SAP

In our previous training tutorials, we have learned how to define valuation

level in SAP. In this SAP tutorial you will learn how to define plant in SAP.
 Pla
Name
nt

TKB TKBL – Bangalore

L Plant

TKU
TKUS – US Plant
S

You can create plant by using one of the following navigation method.

 Transaction code: – OX10

 Menu_Path: – SPRO > IMG > Enterprise Structure > Definition >
Logistics – General – Define, copy, delete, check plant.

Step 1) Enter T_Code “OX10” in the command and click on execute.

Step 2) On change view plants overview screen, click on new entries button
to define new plant code as per the organizational requirements.

Step 3) On new entries screen, update the following details.

 1. Plant: – Enter the four digits key that identifies the plant in SAP

2. Name: – Update the descriptive name of a plant.

After updating plant code and description, click on address button to update
the address of plant.

Step 4) Now update all the required and mandatory details in the address
screen.
Click on save button, choose customizing request and save the configured
plant details.

Now click on next entry button (F8) and similarly create another plant TKUS
with required details.
Successfully we have created new plant in SAP.

Assign Division to Sales Organization in SAP

How to assign division to sales organization in SAP

In this SAP SD tutorials, you will learn how to assign division to sales
organization in SAP systems step by step. In previous training we have
learned how to assign a distribution channel to a sales organization in SAP.

The link between division and sales organization in SAP is established

through the assignment of division to sales organization.

Assignment configuration steps

You can assign division to sales organization by using the following

navigation method.

 Transaction code: – SPRO

 Menu path: – SPRO > SAP implementation Guide > Enterprise

Structure > Assignment > Sales & Distribution > Assign division to
sales organization.
Step 1) Enter T-code SPRO in command field as shown below image and
click on execute button.

Step 2) On customizing: execute project screen, click on SAP Reference IMG.

Step 3) On display IMG screen, navigate the menu path and execute
IMG assign division to sales organization.
Step 4) On change view “Assignment sales organization — Division”
Overview screen, click on new entries button for assignment further
configuration process.

Step 5) On new entries assignment screen, update the following details.

 SOrg: – Update the sales organization for assignment to division

 Dv: – Update the division key for sales organization assignment.

Step 6) After maintaining the required details for assignment, click on save
button and save the details.

Successfully we have assigned sales organization to division in SAP.

How to Define Distribution Channel in SAP

How to create distribution channel in SAP SD

In SAP, Distribution channels determines through which channel products

and services of an organization to reach the customers.

In this SAP tutorials, you will learn how to define distribution channel in SAP
SD step by step. In previous tutorials we have learned how to create sales
organization in SAP.

Distribution channel SAP implementation process

Distr.
Name
Channel

16 Retail

Cash
20
Sales
 Whole
21
Sales

Online
24
Sales

26 Trader

Direct
50
Sale

You can define new distribution channel in SAP by using any of the
navigation method.

 Transaction code: – OVXI

 Menu Path: – SPRO -> SAP IMG -> Enterprise Structure –> Definition –>
Sales and Distribution –> Define copy, delete, check distribution
channel.

Step 1) Enter T-code “OVXI” in the SAP command field as shown below and
press enter to continue.
Step 2) On change view distribution channel overview screen, click on new
entries button to create a new distribution channels in SAP as per the
organizational requirements.

Step 3)- On new entries screen, update the following details.

 Distr.Channel: – Enter the two digits key that identifies the distribution
channel in SAP.

 Name: – Update the descriptive text of distribution channel.

Step 4) After maintaining the required details, click on save button and save
the configured details.

Successfully we have defined new distribution channels in SAP systems

Assign Distribution Channel to Sales organization

How to assign distribution channel to sales organization in SAP

In this SAP Sd tutorials, you will learn how to assign distribution channel to
sales organization in SAP step by step. In previous training we have learned
how to assign a sales organization to a company code in SAP.

The link between distribution channel and sales organization in SAP is

established through this assignment configuration steps.

Assignment configuration steps

You can assign distribution channel to sales organization by using the

following navigation method.

 Transaction code: – SPRO

 Menu path: – SPRO > SAP Customizing implementation Guide >

Enterprise Structure > Assignment > Sales & Distribution > Assign
distribution channel to sales organization.

Step 1) Enter T-code “SPRO” in SAP command field as shown below and
enter.

Step 2) On customizing execute project screen, click on sap reference

img button.
Step 3) In the screen, navigate the menu path and double click on assign
distribution channel to sales organization.
Step 4) On change view “Assignment sales organization — distribution
channel” overview screen, click on new entries button for assignment.

Step 5) On new entries assignment screen, update the following details.

1. SOrg: – Update the sales organization key that you like to assign to
distribution channel

2. DChl: – Under this field, you need to update the distribution channel for
assignment.
Step 6) After assignment, click on save button and save the configured
assignment details.

Choose customizing request and save the data.

Successfully we have assigned sales organization to distribution channel in

SAP.

Assign Sales organization, Distribution Channel, Plant in SAP

How to Assign Sales organization, Distribution Channel, Plant in SAP

In this SAP SD tutorials you will learn how to assign sales organization,
distribution channel and plant together in SAP. In previous training we have
learn how to assign a sales group to a sales office in SAP.
The link between sales organization and distribution channel in SAP is
established through this assignment configuration.

Assignment configuration steps

You can assign sales organization, distribution channel and plant by using the
following navigation method.

 Transaction code: – SPRO

 Menu path: – SPRO > SAP Customizing implementation Guide >

Enterprise Structure > Assignment > Sales & Distribution > Assign
sales organization – distribution channel – plant.

Step 1) Enter T-code SPRO in command field as shown below and enter.

Step 2) In next screen execute project, click on SAP Reference IMG.

Step 3) On display IMG screen, navigate the menu path and choose assign
sales organization – distribution channel – plant.
Step 4) On change view assignment sales organization/distribution channel
– plant overview screen, click on new entries button for further assignment
configuration screen.

Step 5) On new entries assignment screen, update the following details.

1. SOrg: – Update the sales organization key for assignment.

2. DChcust/Mt: – Update the distribution channel key for assignment

3. Plnt: – Update the plant key for assignment.

Step 6) After maintaining all the required details for assignment of sales
organization – distribution channel – plant, click on save button.

Step 7) Now you are prompted for customizing request number, choose
request and press enter to save the data.

Successfully we have assigned sales organization, distribution channel and

plant each other.

Assign Sales Office to Sales area in SAP

Assigning a Sales Office to a Sales Area in SAP is a vital step in configuring
the Sales and Distribution (SD) module. This configuration ensures
seamless integration between the organizational units, enabling effective
sales operations. Follow this detailed tutorial to learn the step-by-step
process for assigning a Sales Office to a Sales Area in SAP.

Why Assign Sales Office to Sales Area in SAP?

The Sales Office is responsible for sales activities in a specific geographical

region or business area. A Sales Area combines a Sales
Organization, Distribution Channel, and Division. Linking a Sales Office
to a Sales Area allows SAP to:

 Establish a clear connection between sales operations and their

assigned geographical or business scope.

 Enable data consistency for customer orders, pricing, and distribution.

 Streamline reporting and operational workflows.

Step-by-Step Process for Assignment

You can assign a Sales Office to a Sales Area using the following navigation
method:

1. Transaction Code: SPRO

2. Menu Path: SPRO > SAP Customizing Implementation Guide >

Enterprise Structure > Assignment > Sales & Distribution >
Assign Sales Office to Sales Area

Step 1: Open SAP Customizing (SPRO)

1. Log in to SAP.

2. In the Command Field, type SPRO and press Enter. Image

Description:

o The image shows the SAP Command Field with the transaction
code SPRO entered to access the SAP Customizing menu.

o It highlights where the user needs to type the code.

Step 2: Access SAP Reference IMG

1. On the Execute Project screen, double-click SAP Reference

IMG. Image Description:

o The image displays the “SAP Reference IMG” button highlighted,

indicating where to click to proceed.

Step 3: Navigate to the Assignment Option

1. Follow this path: Enterprise Structure > Assignment > Sales &
Distribution > Assign Sales Office to Sales Area

2. Select the option Assign Sales Office to Sales Area. Image

Description:
 o The screen highlights the exact menu path to locate the
assignment option.

o The “Assign Sales Office to Sales Area” option is clearly marked

for user convenience.

Step 4: Access the Assignment Screen

1. On the Change View: Assignments Sales Office – Sales Area

Overview screen:

o Click the New Entries button to add a new assignment.

Image Description:

o The image focuses on the “New Entries” button, guiding users to

begin the assignment configuration.
Step 5: Enter Assignment Details

1. On the New Entries screen, update the following details:

o SOrg (Sales Organization): Enter the Sales Organization key

for assignment.

o Dchl (Distribution Channel): Enter the Distribution Channel

key for assignment.

o Dv (Division): Enter the Division key for assignment.

o SOff (Sales Office): Enter the Sales Office key for assignment.

Image Description:

o The image showcases the “New Entries” screen with fields for
Sales Organization, Distribution Channel, Division, and Sales
Office.

o Example values are entered to demonstrate how the

configuration looks.

Step 6: Save the Assignment

1. After entering the details, press the Save button.

2. When prompted for a Customizing Request, select the appropriate

request and confirm. Image Description:
 o This image highlights the save confirmation process with the
“Customizing Request” pop-up.

o It ensures users understand how to finalize the assignment.

Final Verification

Once saved, the assignment of the Sales Office to the Sales Area is
complete. You can verify this configuration by reviewing the overview screen
or testing it through sales transactions.

Summary

Assigning a Sales Office to a Sales Area in SAP ensures operational

efficiency and data accuracy across sales processes. This configuration step
is vital for connecting organizational structures with business workflows,
allowing for effective management and reporting.

How to Define Sales Group in SAP

How to Create sales group in SAP

In this SAP SD tutorials, you will lean how to define sales group in SAP SD
step by step. In previous training we have learned how to set up sales area in
SAP.

What is Sales Group?

Group of sales employees or organizational unit (branch wise) can be defines

as a sales group. A sales office can have number of sales group, so sales
group should be assigned to sales office.

Configuration process
You can define sales office through the following navigation method.

 SPRO -> IMG -> Enterprise Structure –> Definition –> Sales and
Distribution –> Maintain Sales Group.

Step 1) Enter T-code “SPRO” in the SAP command field and enter.

Step 2) On execute project screen, click on “SAP Reference IMG“

Step 3) On display IMG screen, navigate the menu path and click on sales
group.
Step 4) On change view sales groups overview screen, click on “New entries”
button to create new sales group in SAP as per company requirements.

Step 5) On new entries sales group screen, update the following details.

1. Sales Group: – Enter the key that identifies the sales group in SAP.
You are allowed to enter maximum three alphanumeric digits.

2. Description: – Update the descriptive text of sales group.

Step 6) After maintaining all the required details of sales group, click on save
button choose customize request and save the configured sales group
details.

Successfully we have defined sales group in SAP.

Assign Sales Group to Sales Office in SAP

How to assign sales group to sales office in SAP

The following SAP Sd tutorials guides you how to assign sales group to sales
office in SAP step by step. In our previous training tutorial we have learned
how to assign a sales office to a sales area in SAP.

The link between sales group and sales office in SAP is established through
this assignment configuration in SAP systems.

Assignment configuration steps

You can assign sales group to sales office by using the following navigation
method.

 Transaction code: – SPRO

 Menu path: – SPRO > SAP Customizing implementation Guide >

Enterprise Structure > Assignment > Sales & Distribution > Assign
sales group to sales office.
Step 1) Enter T-code SPRO in the sap commend field and press enter to
continue.

Step 2) On customizing execute project screen, choose sap reference

IMG for further configuration process.

Step 3) On display IMG, navigate the menu path click on assign sales group
to sales office.
Step 4) On change view assignment sales office — sales group overview
screen, click on new entries button for assignment configuration screen.

Step 5) On new entries screen, update the following details.

1. SOff: – Update the sales office for assignment to sales group.

2. SGrp: – Update the sales group to which sales office it to be assigned.

Step 6) After maintaining the required details of sales office – sales group
assignment, click on save button and save the configured details.

Choose customizing request and press enter to save the data.

Successfully we have assigned sales office to sales group in SAP systems.

How to define Shipping point in SAP | What is Shipping Point

In this SAP SD tutorials you will learn how to crate shipping point in SAP step
by step. In our previous training class we have learned how to define sales
office and sales group in SAP.

What is Shipping Point?

“Shipping point is a place or location where the goods and services are
delivered to the customers”.
Shipping point is an independent organizational unit in SAP SD module and it
is responsible for processing inbound and outbound deliveries. So shipping
point plays an major role in delivery of goods and services.

Shipping point Implementation process in SAP

You can define a shipping point in SAP through the following navigation
method.

 Transaction code: – OVXD

 Path: – SPRO > Implementation Guide > Enterprise Structure ->

Definition > Logistics Execution > Define copy, delete, check shipping
point.

Step 1) Enter T-code OVXD in the sap command field and enter.

Step 2) On change view shipping points overview screen, click on new

entries button for creation of new shipping point in SAP systems.

Step 3) On new entries shipping point screen, update the following details.

1. Shipping point: – Enter the key that identifies the shipping point in SAP.

2. Description: – Update the text that describes about the shipping point.

3. Times: – Update the Factory calendar and working times of shipping

point.

4. Determine Time: – Update the determining load time, pick/pack time

and round working days..
 5. Form. text names: – Under this field you can update texts for header,
footer, greetings, etc.

After maintaining all the required details of shipping point, click on save
button and save the configured details of shipping point SAP.
Now you are required to update the address details of shipping point
location, update the correct address details of shipping point and press enter
to continue.

Now choose your customizing request number and save the shipping point
configuration data.

Successfully we have defined shipping point in SAP.

How to Maintain Storage Location in SAP

What is Storage Location in SAP?

Storage location is the sub-division of plant where the stocks are physically
stored and maintained within a plant. Each storage location can have its own
address within a plant.

 It is required to maintain at least one storage location for one plant.

 One plant can have number of storage locations.

How to define storage location in SAP

You can configure storage location by using one of the following navigation
method.

 Transaction code: – OX09

 Menu path: – SPRO > IMG > Enterprise Structure > Definition >
Material management > Maintain Storage Location.

Step 1) Enter T-code “OX09” in the SAP command field and enter.

Step 2) Now you are prompted to enter the plant key, update the plant code
in the given work area field as shown below and press enter to continue.
Step 3) On change view “storage locations” overview screen, click on new
entries button to define the new storage locations as per requirements.

Step 4) On new entries storage location screen, update the following details.

1. SLoc: – Enter the four digits key that identifies the storage location in
SAP.

2. Description: – Update the description of storage location.

Step 5) Now select the storage location key and click on address of storage
location in the dialogue structure.

On change view addresses of storage locations overview screen, click on new

entries button to update a number for the storage location address.
Update the number in the field No, you can update up to three characters.
After updating No, press enter to continue and you are directed to another
screen for the entry of secondary information.

Update the required details like details address with telephone no, city, etc.
After updating all the required details, click on save button and save the
configured storage location details.

Successfully we have maintained storage location in SAP systems.

Assign Shipping Point to Plant in SAP

How to assign shipping point to plant in SAP

In this tutorials guides you how to assign shipping point to plant in SAP step
by step by using transaction code OVXC. In previous training we have
learned how to assign sales organization, distribution channel and plant in
SAP.

The link between sales organization, distribution channel and plant is

established through this assignment in SAP.

Assignment configuration steps

You can assign shipping point to plant by using the following navigation
method.

Transaction code: – OVXC

Menu path: – SPRO > SAP Customizing implementation Guide > Enterprise
Structure > Assignment > Logistics execution > Assign shipping point to
plant.

Step 1) Enter T-code “SPRO” in command field and press enter from
keyboard to continue for configuration screen.

Step 2) In the next screen customization execute project, choose SAP

Reference IMG button.
Step 3) Now navigate the following menu path as shown below image and
double click on assign shipping point to plant.
Step 4) On shipping point — plants overview screen, click on find button or
press (Ctrl+F) and enter your SAP plant code to find in the list.

Double click on plant key as shown below.

Step 5) Now select the plant key and click on assign button.

Now select the shipping point key for assignment of shipping point to plant in
SAP and press enter.
Click on save button and save the configured details. You are prompted for
customizing request, choose request and save the customized assignment
details.

Successfully we have assigned shipping point to plant in SAP.

How to Maintain Loading Point in SAP SD

In this SAP Sd tutorial, you will learn how to maintain loading point in SAP
step by step using transaction code or menu path.

Maintain Loading Point in SAP SD

In SAP system, you can divide shipping point into multiple loading points as
per requirements of an organisation. Loading Point is a sub division
of shipping point.

Configuration steps

You can create loading points in SAP by using the following navigation
method.

SAP IMG Path : SPRO >> SAP Reference IMG > Enterprise Structure >
Definition > Logistics Execution > Maintain Loading Point.

Step 1 : – Execute transaction code “SPRO” in command field and press enter
to continue.

Step 2 : From Customizing : Execute Project screen, click on “SAP Reference

IMG“
Step 3 : Follow the Navigation menu path: Enterprise Structure –
Definition – Logistics Execution, and click on IMG activity “Maintain
Loading Point”.
Step 4 : A dialog box – determine work area : entry screen appears asking
you to update the shipping point. Update the shipping point key for which
you want to maintain loading points in SAP. After updating the details press
enter to continue.

Step 5 : On change view loading points overview screen, click on new entries
button to create new loading point in SAP.
Step 6 : On new entries loading point screen, update the following details.

 Loading Point : Update the two digits key that defines as loading
point in SAP system.

 Responsibility : Update the responsible person Id for charging of

loading point.

 Description : Update the descriptive text of loading point.

After maintaining the required details for loading point configuration, click on
save button and save the configured details.

Successfully we have maintained loading point in SAP system.

SAP SD – Maintain Transportation Planning Point in SAP

How to maintain transportation planning point in SAP

In this SAP tutorial, you will learn how to maintain transportation planning
point in SAP step by step using transaction code and IMG menu path.

Transportation planning point is an organisational unit that manages and

control all activities of transportation. The particular shipment documents
are assigned to the related transportation planning points.

Configuration Steps
You can create transportation planning point in SAP using one of the
following navigation method.

> Transaction Code : OVXT

> SAP IMG Path : SPRO > SAP Reference IMG > Enterprise Structure >
Definition > Logistics > Maintain Transportation Planning Point.

Step 1 : – Execute transaction code OVXT in the SAP command field as

shown below Image.

Step 2 : From change view “Transportation Planning Points” overview screen,

click on new entries button to create a new transportation planning point in
SAP as requirements of an organization.

Step 3 : – On new entries transportation planning points screen, update the

following details to maintain the new transportation planning points in SAP.

 TPPt : – Enter the four digits key that defines as transportation planning
point in SAP system.

 Description : Update the descriptive text of an planning point.

 CoCd : – Update the company code for assignment.

Now click on address icon, and update the address details of transportation
planning point.
After updating all the required details, click on save button and save the
configured details in SAP.

Successfully we have maintained transportation planning points in SAP.

Define Customer Account Groups in SAP

How to Create Customer Account Groups in SAP

In this SAP tutorials, We are going to configure the following customer
account groups in SAP.

Grou
Name
p

Domestic
TK01
Customers

Tk02 Export Customers

One-Time
TK03
Customers

 Transaction Code: – OBD2

 Menu path: – SPRO > Financial Accounting (New) -> Accounts

Receivable and Accounts Payable –> Customer Accounts —> Master
Data —-> Preparations for Creating Customer Master Data.

Step 1) Enter T-Code “OBD2” in the SAP command and enter from keyboard
Step 2) on change view “customer account groups” overview screen, click
on new entries button to define new customer account groups in SAP as per
the company requirements.

Step 3) On new entries customer account groups screen, update the

following details.

 Account group: – Update the key that identifies the customers account
group in SAP. You are allowed to enter up to 4 alpha numeric digits.

 Description: – Update the description of account group.

Click on save button, choose customize request and save the configured
data.

Step 4) Now double click on “General Data” option. General data is all
related to common information of the customers.
Now double click on the sub groups and set the field status of the fields as
the optional, suppressed, required and display.

Note: – Based on the fields selection, you are prompted the fields when you
are creating the customer master record.
After maintaining the field status fields for customer accounts general data,
return back to main screen by pressing function F3 key or back button.

Step 5) Now double click on company code data and double click on sub
groups of company code for maintaining the field status of the fields of
company code as optional, suppress, required and display.

 Make the Reconciliation account as required entry.

 Choose other field as suppress or required entry or optional entry or

display as per the company requirement.
Click on save button to save the data.

Step 6) Now double click on sales data for maintaining the field status group
related to SAP SD data. Double click on sub groups of sales data and make
fields as optional, required, display as per the requirements.
Click on save button and save the configured customer account groups
details.

Successfully we have defined customer account groups in SAP.

Assign Number Ranges to Customer Account Groups in SAP

How to Assign Number Ranges to Customer Account Groups

In this SAP tutorials, you will learn how to assign number ranges to customer
account groups step by step by using transaction code OBAR. In our previous
training tutorial, we have learned how to create customer account groups in
SAP.
Configuration steps

You can assign number range intervals to customer account groups by using
one of the following navigation method.

 Transaction code: – OBAR

 Menu Path: – SPRO > Financial Accounting (New) -> Accounts

Receivable and Accounts Payable –> Customer Accounts —> Master
Data —-> Preparations for creating customer master data —–> Assign
number ranges to customer account groups.

Assignment Procedure

Step 1) Enter T-Code “OBAR” in the SAP command field and press enter.

Step 2) On change view “Assign Customer Acct Groups –> Number Range
overview screen, click on position button and enter customer account group
key in the given field. So the customer account group key displays on top of
the screen.
Step 3) Now update the customer account group number range interval “TK”
in the field number range as shown below.

Click on save button to save the details.

Step 4) Now you are prompted for customizing request number, choose the
request and save the assigned details.
Successfully we have assigned number ranges to customer account groups
in SAP.

Assign Number Ranges to Customer Account Groups in SAP

How to Assign Number Ranges to Customer Account Groups

In this SAP tutorials, you will learn how to assign number ranges to customer
account groups step by step by using transaction code OBAR. In our previous
training tutorial, we have learned how to create customer account groups in
SAP.

Configuration steps

You can assign number range intervals to customer account groups by using
one of the following navigation method.

 Transaction code: – OBAR

 Menu Path: – SPRO > Financial Accounting (New) -> Accounts

Receivable and Accounts Payable –> Customer Accounts —> Master
Data —-> Preparations for creating customer master data —–> Assign
number ranges to customer account groups.

Assignment Procedure

Step 1) Enter T-Code “OBAR” in the SAP command field and press enter.

Step 2) On change view “Assign Customer Acct Groups –> Number Range
overview screen, click on position button and enter customer account group
key in the given field. So the customer account group key displays on top of
the screen.

Step 3) Now update the customer account group number range interval “TK”
in the field number range as shown below.

Click on save button to save the details.

Step 4) Now you are prompted for customizing request number, choose the
request and save the assigned details.
Successfully we have assigned number ranges to customer account groups
in SAP.

Define Tolerance Group for Customers / Vendors in SAP

How to Define Tolerance group for customers / vendors in SAP

Tolerance group enables the users to process transaction with the payment
difference of gain or loss that defined as per tolerance group for customers
and vendors in SAP.

In this SAP tutorials, you will learn how to define tolerance group for
customers and vendors in SAP systems. In our previous training we have
learned how to assign number ranges to customer account groups in SAP.

Configuration steps

 Transaction code: – OBA3

 Menu Path: – SPRO > SAP Reference IMG > SAP Customizing
Implementation guide –> Financial Accounting (New) —> Accounts
Receivable & Accounts Payable —-> Business Transactions —–>
Outgoing Payments ——> Manual Outgoing Payments ——-> Define
Tolerances for customers and vendors.
Step 1) Enter T- code “OBA3” in the SAP commend field and enter.

Step 2) On change view Customers/Vendors tolerances overview screen,

click on “New Entries” button to define new tolerance groups for vendors and
customers as per the requirements.
Step 3) On new entries customer and vendor tolerances screen, update the
following details.

1. Company Code: – Update the company code for which you would like
to define tolerance groups.

2. Tolerance group: – It is not required to update the tolerance group key,

just update the description text of tolerance group.

3. Permitted payment difference: – Update the payment differences of

gain & loss with amount and percentage i.e 500 percentage and 1%
adjustment by 100.
This means the user can process the business transaction with the payment
difference of 500 with gain or loss of 1 percentage. The SAP system doesn’t
allow to process the transaction above the payment differences amount.

After maintaining all the required details of customer and vendor tolerances,
click on save button and save the implemented tolerance group details.

Successfully we have defined tolerance group for customers and vendors in

SAP.

How to Create Sundry Debtors in SAP

In this SAP training tutorials, you will learn how to create sundry debtors in
SAP (Reconciliation account for customers) step by step using transaction
code FS00. Accounts receivable is a sub ledger accounting and also called as
sundry debtors.

How to Create Sundry debtors in SAP

Step 1) Enter T-Code “FS00” in commend field and enter.

Step 2) On Edit G/L Account Centrally screen, update the following details.

 Enter the general ledger account in the field G/L account to create the
sundry debtors a/c in SAP.

 Enter the company code “TK01” under which company code that the
G/L account to be created.

 Now click create icon.

Step 3) Now you are required to update the following details.

1. Account Group: – Choose the account group that the G/L account
belongs to.

2. Choose statement type balance sheet.

3. Description: – Update the G/L account short text and long description
as Sundry Debtors.

4. After updating the details, click on control tab.

Step 4) On control tab, update the following details.

1. Account currency of G/L account.

2. Update the reconciliation account for account type as customers.

3. Choose the account management in company code as open item

management or line items display.

4. Update sort key as 031 (customer no).

Step 5) Now select create/bank/interest option and update the field status
group as G067 (Reconciliation Accounts).

Step 6) After maintaining all the required details for sundry debtors, click on
save button.

Successfully we have created sundry debtors in SAP.

Setup Partner Determination Procedure in SAP SD

In this tutorial, you will learn how to define partner functions and setup
partner determination procedure in SAP SD step by step using Tcode VOPAN.

How to setup partner determination procedure in SAP

In order to get the required partner functions into customer master data, we
have to define partner determination procedure in SAP SD.

Navigation

SAP R/3 Role

Setup partner determination
Menu

Transaction
VOPAN
Code

SPRO => Sales and Distribution(SD) => Basic functions

SAP Menu
=> Partner determination => Setup partner
Path
determination.

Partner determination procedure configuration steps

Step 1 : – Execute tocde “VOPAN” in the SAP command field.

Step 2 : – On maintain partner determination screen, choose partner object

customer master and click on change button.
Step 3 : – Define partner functions

For each partner function you have to specify a corresponding partner type
which controls the functionality of partner. For a partner function, if the
partner type is “KU” it becomes customer and if partner type is “IS” it
becomes vendor. For a partner function if we check the fields unique, than
we can have only partner of that function within a customer master. “SP” is
always unique.

From partner determination procedures overview screen, click on new entries

to create new partner determination procedure entries as per the
requirements of client.

Under dialog structure, choose partner functions option.

From change view partner functions overview screen, click on new entries
button to define the new partner functions in SAP.

On new entries partner functions screen, enter the following details.

 Partner : – Enter the key that defines as partner function in SAP

 Name : – Description name of partner functions in SAP

 Partner type : – Update the partner type key from the list, KU
represents as customer.

 Error : – It automatically updates by the system, when you press enter

from keyboard.
Click on save button and save the configured partner functions in SAP.

Step 4 : – Assign partner function to account group

Choose Account groups -Function assignment and click on new entries button
as shown below image.

From new entries account group function assignment screen, enter the
following details.

 Partner function : – Enter the partner function key “TC” in the field.

 Account Grp : – Enter the account group key for assignment of partner
functions to the required customer account group.

Click on save button and save the details.

Step 5 : – Define partner determination procedure

Under dialog structure, choose the partner determination procedure and click
on new entries button for creation of new partner determination procedure in
SAP SD module.

On new entries partner determination procedures screen, update the

following details.

 Part.Det.Proc : – Update four digits key that identifies as partner

determination procedures in SAP.

 Name : – Enter the description of partner determination procedure key.

Click on save button and save the configured details.

Step 6 : – Partner functions in Procedure

Choose defined partner determination procedure key and double click on

partner functions in procedure.
On change view partner functions in procedure overview screen, choose new
entries button for assignment of partner functions to partner determination
procedure.

On new entries assignment screen, assign the partner functions for partner
determination procedure key and choose the check box for not modifiable,
mandatory function if required.

After maintaining all the required details, choose save button and save the
details.
Successfully we have created partner functions and partner determination
procedures in SAP.

Create Customer Master Record in SAP (Customer Master Data)

What is customer master record in SAP?

Definition – Both financial accounting module (SAP FI) and sales &
distribution module (SAP SD) uses customer master record in SAP. The
customer master database contains the information about the customers
and this information is stored in individual customer master records in SAP.
For each customer we have to specify a number and maintain corresponding
details of customer.

The data in customer master records enables to control how the transactions
data is to be posted and processed for a customer. Master records are
divided into the following areas.

 General data

 Company code data

 Sales area data

During sales transactions, the SAP system automatically determines the

details of customer from the customer master record.

How to create customer master data in SAP

Customer master data in SAP can be created using menu path or transaction
code XD03.

Navigation

SAP R/3 Role

Create customer master record
Menu

Transaction
VD01, XD01
Code

SAP Menu => Logistics =>Sales & Distribution =>

SAP menu
Master data => Business partner => Customer =>
path
Create => VD01 – Sales and Distribution
  Transaction code VD01 create general and sales & distribution views of
customer master data. IF you create customer master data using tcode
VD01, than it can only be used in SD

 Transaction code XD01 creates general and centeral customer master

views of the customer master data. It can be used in SD as well as in
Finance.

Configuration Steps

Step 1: – Execute tcode “VD01” on SAP easy access screen.

Step 2 : – The initial screen of customer create appears, update the

following details.

Account group : – It controls view and fields, specify the customer account
group key.

Customer : – You can keep this field as blank, so the system automatically
generates the customer number on basis of customer number range interval.

Company Code : – Update the company code with which customer

executes business transactions.

Sales Org : – Specify the sales organization code with which the customer
executed the sales transactions.

Dist_Channel : – Specify the distribution channel code with which the

customer executes the sales transactions.

Division : – Update the division code with which the customer executes the
sales transactions.
Note : – If you get an error as sales area is not defined for customers, define
sales area with the combination of sales organization, distribution channel
and division.

Step 3 : – On create customer: general data screen, update the

following details.

Address : – Update customer title, name of customer, address details and

communication details like mail id, telephone number, fax number, etc.
Marketing : – Update the required details of customer like customer
classification, industry type, etc.
Unloading Points : – Specifies the location at which the goods are to be
unloaded for the customer.

Step 4 : – Click on sales area data and update the following details.
Sales : – Under this sales area, update the required details of sales order,
Price group, customer price procedure, customer hierarchy, etc.

Shipping : – Under shipping update delivery priority, shipping conditions,

delivery plant, etc.
After updating all the details for customer master data, click on save button
and save the details. Now you get a successful message as

Successfully we have created Customer Master Record in SAP.

Define Sales Order Reasons in SAP

In this SAP SD tutorial you will learn how to create sales order reasons step
by step using Tcode OVAU.

How to define sales order reasons in SAP

What is Sales Order Reason?

Order reasons are parameters that determines the reasons that make the
customers to place an order in an organization. For e.g. Some of order
reasons are newspaper advertisement, Television advertisement, discounts,
etc.

Purpose of Configuration

In this activity you will create an order reason code and specify this order
reasons in the sales document. Sales order reasons in SAP helps in
generating sales statistics based on specific advertisement.

Configuration Values

Order
Description
Reason

Television
TDV
Advertisement

NAV News Advertisement

Navigation path

SAP R/3 Role

Define Order Reasons
Menu

Transaction
OVAU
Code

SPRO > IMG > Sales & distribution > Sales > Sales
SAP IMG Path documents > Sales document header > Define order
reasons

Sales Order reason Configuration steps

Step 1 : – Enter Tcode “OVAU” in command field and enter.

Step 2: – On change view “Sales documents: order reasons” overview
screen, choose new entries button for creation of new order reason as per
requirements of project.

Step 3: – On new entries order reasons screen, update the following details.

 Order reason : – Enter the three digits key that identifies the sales
order reason in SAP system. In our case order reason is TDV. The order
reason number should be unique for order reason.

 Description: – Update the descriptive text of order reason. In our case

order description television advertisement.

 R : – If order reason for retro billing, than update specific key the from
the given list.

Click the save button in the standard toolbar to save the created order
reason in SAP. You can see the newly created sales order reasons in the
change view sales documents: sales order overview screen.

Successfully we have created new sales order reason TDV in SAP system.

Define Purchase Order Types in SAP SD

How to create purchase order types in SAP SD

In SAP, Purchase order types are parameters that the customers uses to
place a order in an organization using various transmission services like
Phone, E-mail, etc.

Purpose of Configuration

In this activity you define a 4 character key that specifies the transmission
method that the customers uses to place orders into an organization.
Purchase order type helps you to take statistical sales reports on this
methods.

Configuration values

Purch. Ord. Descriptio

Type n

EMAI Email

WRI Written

Online
ONLD
Orders

Navigation Path

SAP R/3 Role

Define purchase order types
Menu

Transaction
SPRO
Code

SPRO > IMG > Sales and Distribution > Sales > Sales
SAP IMG
Documents > Sales Document Header > Define
Path
Purchase Order Types

Purchase order types configuration steps

Step 1 : – Enter Tcode “SPRO” in the command field and enter.

Step 2 : – On customizing execute project screen, choose SAP Reference
IMG.

Step 3 : – From display IMG screen, follow the path and choose img activity
“define purchase order types”.
Step 4 : – On change view sales documents customer order types overview
screen, click on new entries button for creation new purchase order types in
SAP as per requirements of project.

Step 5 : – On new entries purchase order types screen, update the following
details.

 Pur. ord. type : – Enter the key that identifies the purchase order type
in SAP. You are allowed to maintain up to four digits alphanumeric key.
In our case, the purchase order type in EMAI

 Description : – Update the descriptive text of purchase order type. In

our case, the purchase order type description is E-Mail.
Click the save icon in the standard toolbar or press ctrl+s to save the
configured purchase order type in SAP SD. You can view newly created
purchase order type in the change view sales documents customer order
types overview screen.

How to define Item Categories in SAP | What is an Item Category

In this SAP tutorials, you will learn what is an item category and how to
customize new item categories in SAP SD. using transaction code VOV7.
Before configuration of item categories, let discuss briefly about item
category.

What is an item category?

An organization segregate the goods and services in to various categories

such as item price, standard items, item discounts, etc. These categories
under which items are placed are called as item categories.

Purpose of Configuration

In this activity you define item categories that determines how the items will
behave within a sales document. The item category with sales document
type controls the flow of a sales documents.

Configuration Values

Item
Description
Category

Standard
ISTD
Items

IFRE Free Items

How to create item categories in SAP

Standard SAP system delivers with various predefined item categories, you
can use this predefined item categories as per your requirements. If required
you can create new item categories in SAP as per the requirements of
project.

Navigation Path

SAP R/3 Role Create item category

 Menu

Transaction
VOV7
Code

SPRO > IMG > Sales and Distribution > Sales > Sales
IMG Path Documents > Sales Document Items > Define Item
Categories

Step 1: – Enter T-code “VOV7” in the SAP command field and enter.

Step 2 : – On change view maintain item categories overview screen,

displays the list of existing item categories. Click the new entries button to
create new item category as per client requirements.

Step 3 : – On new entries item category screen, update the following details.

 Item Category : – Update the key that identifies an item item category
in SAP.

 Update the name of item category.

 Update billing relevance as A ( Delivery related bulling document) and

for Pricing as X (Pricing standard).

 Choose check option for business item, Scheduled line allowed,

Wght/Vol.Relevant, Credit active, Determine cost.

 Update other required fields as per requirements of business.

After maintaining all the required details of item category, choose save
button on the standard toolbar and save the configured item categories in
SAP.

How to Assign Item Categories in SAP

In this SAP tutorials, you will learn how to assign item categories in SAP
SD step by step using transaction code VOV4.

Assign Item Categories in SAP

After configuration of item categories in SAP, you have to assign item

categories to a sales document types. During the sales documents
processing, the SAP systems automatically specify a corresponding item
category for the items.
Purpose of Configuration

In this step you assign item category to sales document types. The link
between item categories and document types are established through this
assignment process.

Navigation Path

SAP
Assign Item Categories
R/3 Role

Transaction
VOV4
Code

SPRO > SAP Reference IMG > Sales and Distribution >
SAP IMG
Sales > Sales Documents > Sales Documents Item >
Path
Assign Item Categories.

Configuration steps

Step 1 : – Enter Tcode VOV4 in the SAP command field and enter.

Step 2 : – On change view item category assignment overview screen, click

on new entries button and assign the item category with the combination of
SaTy (sales document types), itCGr (item category group), Usg. (usage) and
HLevItCa (higher level item category).

Step 3 : – On new entries item category assignment screen, update the

required details like sales document type and item category for assignment
of item category to a sales document type.
After updating all the required details, click on save button and save the
configured assignment item category details.

While assigning the item category, whatever the item category is assigned
as manual item category, you can replace with default item category in the
sales documents.

Define Item Category Groups in SAP

How to Define Item Category Groups in SAP SD

In this tutorial, you will learn how to define Item Category Groups in
the SAP Sales and Distribution (SAP SD) module using Transaction
Code OVAW. Item category groups play a crucial role in determining the
behavior of items in sales documents and ensuring that the correct item
category is automatically assigned.

What is an Item Category Group?

An Item Category Group in SAP SD is used to group related item
categories in sales documents. These groups are assigned to the material
master record through the material type and are connected to SD processes
via item category determination rules. During sales document processing,
the SAP system evaluates the material’s item category group and assigns
the appropriate item category.

Purpose of Defining Item Category Groups

1. Grouping of Related Item Categories: Combines similar item

categories into a logical group, making the assignment process more
efficient.

2. Automatic Item Category Assignment: Helps the SAP system

automatically assign the correct item category when creating sales
documents.

3. Custom Configuration: Allows the creation of custom item category

groups to meet specific project or business requirements.

Important Notes:

 SAP provides standard predefined item category groups sufficient for

most business scenarios.

 Custom item category groups must start with Y, Z, or 9 (e.g., ZSEM).

Other prefixes are not allowed for saving data.

Navigation Path

To define an item category group, follow the steps below:

Component Details

Role Menu Define Item Category Groups

Transaction
OVAW
Code

SAP IMG SPRO > SAP Reference IMG > Sales and Distribution >
Path Sales > Sales Documents > Sales Document Item >
 Component Details

Define Item Category Groups

Step-by-Step Process for Defining Item Category Groups

Step 1: Access Transaction Code OVAW

1. Log in to your SAP system.

2. In the Command Field, enter the transaction code OVAW and

press Enter. Image Description:

o This image shows the SAP command field where the transaction
code OVAW is entered to access the configuration for item
category groups.

Step 2: Open the Item Category Groups Screen

1. On the Change View: Materials Item Category Groups in

Material Master Overview screen:

o Click on the New Entries button to create a new item category

group.The image highlights the “New Entries” button, which
allows you to create a new item category group based on the
business requirements.

Step 3: Enter New Item Category Group Details

1. On the New Entries: Item Category Groups screen, update the

following fields:
 1. ItCGr (Item Category Group): Enter a 4-character
alphanumeric key to represent the item category group
(e.g., ZSTD). Ensure the key starts with Y, Z, or 9.

2. Description: Provide a clear description for the item category

group (e.g., Standard Materials).Example Values:

3. Item Category Group: ZSTDDescription: Custom Standard

MaterialsImage Description:

4. This image displays the fields where new item category group
details are entered, including the key and description.

Step 4: Save the Configuration

1. After entering all the required details, click on the Save button.

2. Enter the appropriate Customizing Request to save the

configuration. What to Expect:

o The new item category group will now be visible in the overview
screen and can be used for item category determination in sales
documents.

Benefits of Item Category Groups

 1. Simplifies Item Management: By grouping similar item categories,
it streamlines item category determination.

2. Customizable: Supports the creation of custom groups to meet

unique business needs.

3. Enhances Automation: Enables the SAP system to assign item

categories without manual intervention during sales order creation.

Key Notes on Customization

1. Standard vs. Custom Groups: Use SAP’s standard item category

groups for typical business processes. Only create custom groups when
necessary.

2. Prefixes for Custom Groups: Always start custom keys with Y, Z,

or 9 to comply with SAP standards.

3. Testing: After creating a new item category group, test it in sales

document creation to ensure proper behavior.

Conclusion

Defining Item Category Groups in SAP SD is an essential configuration

step for efficient sales document processing. By grouping related item
categories and integrating them with material master data, businesses can
streamline their workflows and reduce errors. Follow this step-by-step guide
to create item category groups tailored to your business needs.

For more insights into SAP SD, explore additional tutorials and enhance your
understanding of SAP’s robust capabilities. If you have any questions, feel
free to ask in the comments below!

How to define Schedule Line Categories in SAP

In this SAP tutorials, you will learn how to define schedule line categories
in SAP SD step by step using Tcode VOV6.

How to create schedule line categories in SAP

The schedule line category controls the data that need to be processed at
schedule line level in the sales documents.

What is schedule line?

A schedule line in a sales document helps you specify the date and quantity
of items to be delivered on specific date. For e.g. You have an order of 100
products to be delivered on specific dates, out of 100 products you need to
deliver 50 products on a specified date and time. Schedule line helps you to
deliver the products on a specific date and time. Based on the assignment
of item category to schedule line, the SAP system automatically delivery the
data from sales document to delivery document.

Purpose of Configuration

In this step you need to define different schedule line categories with the
corresponding functionalities to be used in the respective sales documents.

Schedule line category configuration steps

Navigation path

SAP R/3
Maintain schedule line category
Role Menu

Tcode VOV6

SPRO ? SAP Reference IMG ? Sales and Distribution ? Sales

SAP IMG
> Sales Documents ? Schedule lines ? Define schedule line
Path
categories.

Step 1: – Enter transaction code VOV6 and press enter.

Step 2 : – A new window: change view “Maintain Schedule Line Categories

overview opens on the screen, click on new entries button to create new
schedule line category as per the client requirement.
Step 3 : – On new entries schedule line categories screen, update the
following details.

 Sched.line cat : – Update the two digits key the identifies the schedule
line category in SAP.

 Description : – Update the description of schedule line category.

 Delivery block : – It specifies the whether the item is blocked for

delivery.

 Movement type : – It specifies the physical or logical moment of

materials.

 Item relevant for delivery : – If you check this option, the items
becomes relevant for delivery.

 Order Type : – It determines the document type “NB” to create the

purchase requisition (PR) in SAP.

 Requirement/ Assembly : – If you select this field, the ordered

quantities item will be transferred from SD to IM (inventory
management).

 Availability : – By choosing this option, the SAP system carries out

availability check for the items in the sales documents.

 Product allocation : – If you choose this option, product allocation will

be activated for the items in the sales documents.
After maintaining all the required details, click on save button and save the
configured schedule line categories in SAP.

How to Assign Schedule Line Categories in SAP SD

In this tutorial, we will guide you through the step-by-step process of

assigning schedule line categories in the SAP Sales and Distribution
(SD) module using Transaction Code VOV5. Assigning schedule line
categories ensures that items in sales documents are processed correctly
based on Material Requirement Planning (MRP) and delivery requirements.

What Are Schedule Line Categories in SAP?

Schedule Line Categories define how delivery dates and quantities are
managed for items in a sales document. They ensure seamless integration
between sales and inventory processes by managing:
  Delivery relevance.

 Inventory checks.

 Material Requirement Planning (MRP).

The system automatically determines the schedule line category for each
item in a sales document based on the item category and MRP
type specified in the Material Master.

Navigation Path

To assign schedule line categories, follow the navigation path or directly use
the T-code:

Component Details

SAP Role Assign Schedule Line Categories

Transaction
VOV5
Code

SPRO > SAP Reference IMG > Sales and Distribution >
SAP IMG
Sales Documents > Schedule Lines > Assign Schedule
Path
Line Categories

Step-by-Step Process for Assigning Schedule Line Categories

Step 1: Access Transaction Code VOV5

1. Log in to the SAP system.

2. In the Command Field, enter the transaction code VOV5 and

press Enter. Image Description:

o This image shows the SAP command field with the T-

code VOV5 entered, highlighting where users need to start.
Step 2: Open the “Assign Schedule Line Categories” Overview

1. On the Change View “Assign Schedule Line Categories” overview

screen:

1. The system displays a list of existing entries, showing item

categories and their assigned schedule line categories.

2. Click on the New Entries button to assign a new schedule line

category.

3. The image highlights the “New Entries” button on the overview

screen, enabling users to add new assignments.

Step 3: Enter the Assignment Details

On the New Entries: Assign Schedule Line Categories screen, update

the following fields:

1. Item Category: Enter the item category key you want to assign a
schedule line category to (e.g., ZSTD).

2. MRP Type: Enter the material requirement planning type (e.g., ND for
“No Material Requirement Planning”).
 3. Proposed Schedule Line Category: Specify the default proposed
schedule line category (e.g., AT).

4. Manual Schedule Line Category: Optionally, enter a manual

schedule line category to replace the proposed one if needed.

5. This image shows the “New Entries” screen where item categories,
MRP types, and schedule line categories are configured.

Step 4: Save the Configuration

1. After entering all the required details, click on the Save button.

2. The system will prompt you for a Customizing Request. Enter the
appropriate request details and save the assignment. What to
Expect:

o The newly assigned schedule line categories will now appear in

the overview screen.

Example: Assigning Schedule Line Categories

Consider the following example:

 Field Example Value

Item Category ZSTD (Custom Standard Item Category)

MRP Type ND (No Material Requirement Planning)

Proposed Schedule
AT (Standard Schedule Line for Inquiries)
Line Cat.

Manual Schedule Line Leave blank unless specific manual control

Cat. is required

Example: Assigning Schedule Line Categories

Key Notes on Assigning Schedule Line Categories

1. MRP Type: The MRP type in the Material Master controls whether
material planning is active or not.

o ND (No MRP): No planning occurs for the item.

o PD (MRP): Full planning is activated.

2. Proposed Schedule Line Category: This is automatically assigned

when creating a sales order.

3. Manual Schedule Line Category: This allows users to override the

default assignment in certain scenarios.

Conclusion

Assigning schedule line categories in SAP SD using T-code VOV5 ensures

accurate integration between sales and inventory processes. This
configuration is vital for managing delivery dates, inventory, and material
planning seamlessly.

With proper assignment, businesses can streamline their sales workflows and
ensure smooth order fulfillment. Explore more SAP SD tutorials to enhance
your understanding and optimize your sales processes.

How to Create Sales Document Type in SAP SD

Define Sales Document Type in SAP

Learn what is sales document type in SAP and how to create sales document
types in SAP using tcode VOV8 with the function copy as and new entries.

SAP R/3 Role

Document type maintenance
Menu

Transaction
VOV8
code

SPRO => Sales & Distribution => Sales => Sales

SAP IMG
Documents => Sales Document header => Define sales
Path
document type.

Step 1 : – Execute tcode “VoV8” from the SAP easy access screen.

Step 2 : – From change view “Maintain sales order types” overview screen, a
list defined document types displays with detailed description. Click on new
entries option to create new sales document types in SAP.

Step 3 : – On new entries document type screen, update the following

details.

Sales document type : – Enter four digits key that defines as sales
document type in SAP systems.

Description : – Update the descriptive text of document type.

After updating all the required for sales document type, click on save button
and save the configured details in SAP.

Successfully we have defined sales document type in SAP SD module by

using copy option.

Lets create sales document types by using new entries option.

From change view maintain sales order types overview screen, choose new
entries button for creation of new sales document types with our own
customized settings.
From new entries sales document type screen, update the following details.

Sales document type : – Enter 4 digits that defines as sales document

type in SAP system, and update the description in the given text field.

Number system : – Assign number range for interval assignment and

external assignment, and update increment of item number.

General Control : – Update required fields of check credit limit, credit

group, output application and other required details as per requirements of
project.

Transaction flow : – Update the required fields of screen sequence group,

transaction group, document price procedure, display range, quotation
message and other required details.
 Shipping : – Update the details of delivery type, shipment cost information
profile.

Billing : – Under billing you need to update billing type for delivery related
billing document, ordered related billing type, Condition type line items,
payment guarantee procedure and other required fields.
Contract : – Under contract update billing request and check partner
authorization.

Availability check : – Update business transaction details.

After maintaining all the required details, click on save button and save the
configured sales document type in SAP.

What is Pricing in SAP – Pricing Procedure in SAP SD

In this SAP SD tutorial you will learn what is pricing in SAP and overview of
pricing procedure in SAP SD (sales and distribution) module.

The pricing of goods and services are determined based on certain

conditions like cost of materials, manufacturing, shipping, sales tax, etc. In
the Sales and distribution (SAP SD) module, the price of goods and services
are determined by the pricing functions.

What is Pricing in SAP – Overview of Pricing Procedure

During the sales documents processing, the SAP system automatically

calculates the net values of documents by considering the condition values
of different pricing elements. The prices are calculated based on conditions
techniques. A condition technique is the process of determining the
condition records into sales documents. The pricing procedure in SAP as
follows

 Condition technique consists of condition records and condition records

are stored in condition tables.

 Condition tables will be placed in access sequences.

 Access sequences are assigned to condition type.

 Condition types will be placed in pricing procedure.

You can configure pricing in SAP system as per the requirements of clients.
Pricing procedure consists the following configurations.
 1. Condition Records

2. Condition Tables

3. Access Sequence

4. Condition Types

5. Pricing Procedure

6. Pricing procedure determination

Condition Records : – It is also called as condition master, it is the master

data for pricing. You can maintain condition master record by using
transaction code VK11.

Condition Tables : – It is the combination of fields which are used to

maintain condition records. You can maintain condition tables in SAP using
transaction code V/03.

Access Sequence : – It is a search strategy used to search for valid

condition records from most specific to most general. You can maintain
access sequence in SAP using transaction code V/07.

Condition type : – It controls the pricing components and pricing elements.

You can define condition types in SAP using transaction code V106.

SAP system automatically determines the gross prices of goods/ services by

calculating the charges and discounts on a particular vendor on a basis of
price procedure condition type.

How to Define Condition Table in SAP SD (V/03)

In this SAP SD tutorials, you will learn how to create condition table in SAP
step by step using transaction code V103.

Condition tables are the combination of fields which are used to maintain
condition records in SAP.

Define condition table in SAP SD

Navigation Menu Path

SAP R/3
Create condition tables
Role Menu

Transaction V/03
 code

SPRO -> Implementation Guide for R/3 Customizing (IMG)

SAP IMG
-> Sales and Distribution (SD) -> Basic functions -
Menu Path
> Pricing > Pricing control -> Define condition tables.

Step 1 : – Enter tcode “V103” in the SAP command field and execute.

Step 2: – On create condition table (Pricing Sales/ Distribution) screen,

update the following details.

Table : – User defined table number should be above 500, below 500 are
predefined default tables. Enter the number the identifies as condition table
in SAP. The table number should be in between 500 and 999, if you don’t
enter table number than the system automatically takes the number below
500.

Press enter to continue.

Step 3 : – On create condition table (Pricing sales/distribution) field overview

screen, update the following details.

Field catalog: – Field catalog consists the list of allowed fields for creation of
condition table in SAP. Choose the required key fields to create the condition
table. Double click on the filed which is under filed catalog field and it will
appear in selected field.
Click on technical view button, the fields that are marked as key appears at
key level, and the fields that are marked as footer field appears at footer
level while defining condition records.

After selecting the fields click on generate (shift+f4).

Click on yes option to generate the condition table.

You have to save it in package, then only system will propose workbench
request number. If you save it in request number then only you can transport
it from one server to another server. Workbench request is cross client
request, so you can create any condition table in one client and it will appear
in all clients.

You can save condition table in local object or package. If you save condition
table in local object, then SAP system wont generate request number and
you can not transport condition tables from one server t another server. So
save the tables in package to transport from one server to another server.

Successfully we have created condition table in SAP.

How to Define Access Sequences in SAP SD

In this SAP SD tutorial, you will learn how configure / define access
sequences in SAP using Tcode V/07.

What is Access Sequence?

An access sequence is a search strategy that helps the SAP system to

determine valid conditional records for condition types during pricing in sales
documents. Access sequences is a cross client and also stored in work bench
request.

Access sequences in SAP can have multiple condition tables and access
sequence can used for multiple condition types. In access sequence,
condition tables are from most specific to most generic.

Purpose of Configuration
Access sequences must be created in SAP to use condition records. In pricing
procedure, access sequence is assigned to condition types and it helps to
retrieve the data from condition table in a logical sequence.

SAP SD – Define Access Sequences in SAP

Navigation

SAP
R/3 Role Maintain Access Sequences
Menu

Transaction
V/07
Code

SPRO (Tcode) -> Implementation Guide for R/3

SAP IMG Customizing (IMG) => Sales and Distribution (SD) =>
Path Basic functions => Pricing => Pricing control =>
Maintain access sequences.

Step 1 : – Enter Tcode “V/07” in the command field and click on execute
option.

An information – caution: the is cross -client displays on the screen, press

enter to continue.
Step 2: – On change view access sequences overview screen, click on new
entries button to create a new access sequence in SAP as per requirements
of project.

Step 3 : – On new entries access sequence screen, update the following

details.

 AS : – Enter the key that identify as the access sequence in SAP

 Description : – Update the descriptive text of access sequence.

 Ty. : – Choose access category if required.

Click on save button and save the configured access sequences details in
SAP.

Step 4 :– Choose newly defined access sequence key and double click on
Accesses.

On change view accesses overview screen, click on new entries button and
place the condition table from most specific to most general.

On new entries accesses screen, update the required condition tables in the
required order from most specific to most general.
  No : – It specifies the sequential number condition table.

 Table :- In this field, you need to specify the condition table number.

 Exclusive : –By choosing exclusive check box, the system finds the
valid condition record and system will come out with search strategy
and determine the price into sales document.

Select the condition table entered in access sequences and click on fields.
The system gives the warning messages as “The field assignment has not
yet been made”, press enter till you get the fields. Repeat the same
procedure for all the condition tables in access sequences. Choose the save
button and save the details.

Successfully we have configured access sequences in SAP.

What is Condition Type | How to create Condition Types in SAP

In this SAP tutorials, you will learn what is condition type and how to define
condition types in SAP SD using tcode V/06.

What is condition type in SAP

Condition type is a technique that controls the price components or price

elements in SAP. In a real time business scenario, the entire pricing can be
divided into four elements i.e

1. Basic Price

2. Discount/Surcharge

3. Tax

4. Freight

There can be different types condition types for each type of price element.
each pricing element has its own functionalities and usage in the SAP
system, and we need to define corresponding condition types with the
respective functionalities.

How to create condition types in SAP

Navigation

SAP
R/3 Role Maintain condition types
Menu

Transaction
V/06
code

SPRO(Tcode) -> Implementation Guide for R/3

SAP IMG Customizing (IMG) => Sales and Distribution (SD) =>
Path Basic functions => Pricing => Pricing control =>Define
condition types => Maintain condition types.

Note : – SAP system delivers various predefined condition types and you use
this types as per your requirements. However you can define new condition
type in SAP as per requirements of client using option new entries or copy as
option.

Step 1 : – Enter Tcode “V/06” and enter.

Step 2 : – On change view conditions: condition types overview screen,

choose new entries button and update the following details.

Condition type : – Update the key that identifies as condition type in SAP
and update the descriptive text of condition type.

Access Sequence : – Update the corresponding access sequence key of the

condition type.

Condition class : – It determines the structure of condition type and allows

to control each condition type as per its functionalities.
Plus/minus : – This filed for discounts and surcharges, if you enter negative
(X), then it becomes discount. If you choose the value as positive (A), it
becomes surcharge.

Calculation type : – It determines how the condition amount of condition

type is to be calculated.

Condition category : – It specifies the classification of different condition

types.

Scale basis : – It specifies how the scale amount of condition type is

calculated.

Check value : – Specifies the scale rates to be entered as per ascending

order or descending order.
Click on save button and save the configured condition type details in SAP.

Define condition type with reference of standard condition type

You can create new condition type by coping the standard condition type, so
the all the settings of predefined condition type are copied to new condition
type.
Update new condition type and description and press enter to continue.

Click on save button and save the condition type in SAP.

What is Pricing Procedure – Define Pricing Procedure in SAP

In this SAP tutorials, you will learn what is pricing procedure and how to
define pricing procedure in SAP SD using transaction code V/08.

What is Pricing Procedure in SAP

Pricing Procedure determines the price of goods and services in SAP system.
When you are processing sales documents the system calculates the
documents price by considering the condition types. Each pricing procedure
in sap consists its own set of condition types to determines the prices of
goods and service for the respective customer categories.

Purpose of configuration

In this activity you define customer pricing procedure to calculate the value
of goods & service. We need to place the condition types in a sequence
order. The SAP system determines the pricing procedure on the basis of

 Customer master data

 Sales data

 Sales document.

How to define pricing procedure in SAP

Navigation

SAP R/3
Maintain pricing procedure
Role Menu

Transaction
V/08
Code

SPRO -> Implementation Guide for R/3 Customizing (IMG)

SAP IMG
> Sales and distribution > Basic functions > Pricing >
Path
Pricing control > Define and assign pricing procedure.

Note : – You define new customer pricing pro

Step 1 : – Execute tcode “V/08”.

Step 2 : – On change view procedures overview screen, click on new entries
for creation of pricing procedure in SAP.

Step 3: – On new entries pricing procedures screen, update the following

details.

 Procedure : – Enter the key that defines as pricing procedure in SAP.

 Description : – Enter the description of pricing procedure.

Now click on save button and save the configured pricing procedure details
in SAP system.

Step 4 : – Select the pricing procedure and double click on control tab.
Click on new entries button and specify the required condition types in
required order.

Update the following details.

Step : – It specifies the sequential number of condition type in pricing order.

CTyp : – Update the required condition types

Description : – The description of condition type will be automatically

updated by SAP system.

Manual : – It enables to determine conditions during pricing in sales

documents either if they are entered manually or from other application.

Required : – If you check this option for condition type, it becomes

mandatory during pricing in sales documents.

Reqt : – The requirement specifies condition type has to be determined

during pricing in the sales document. If a condition type to be determined in
to sales document, the requirement specified here must be specified.
After maintaining all the required details, click on save button and save the
configured details.

Successfully we have maintained pricing procedure in SAP SD.

How to Define Pricing Procedure Determination in SAP SD

In this SAP tutorial, learn how to define Pricing Procedure

Determination in the SAP Sales and Distribution (SAP SD) module
step-by-step using Transaction Code OVKK. This process ensures the SAP
system can automatically determine the appropriate pricing procedure
during sales document processing.

What is Pricing Procedure Determination?

Pricing Procedure Determination allows the SAP system to select the correct
pricing procedure based on a combination of:

1. Sales Area (Sales Organization, Distribution Channel, Division)

2. Document Pricing Procedure (associated with the sales document

type)

3. Customer Pricing Procedure (from the customer master data)

This configuration ensures the system applies the appropriate pricing rules
for different customer categories, sales channels, and documents.

Navigation Path
 Role Menu Pricing Procedure Determination

Transactio
OVKK
n Code

SPRO → Sales and Distribution → Basic Functions →

SAP IMG
Pricing → Pricing Control → Define and Assign Pricing
Path
Procedure → Define Pricing Procedure Determination

Steps to Define Pricing Procedure Determination in SAP

Step 1: Execute Transaction Code

1. Open the SAP GUI and execute Transaction Code SPRO.

Step 2: Access the SAP Reference IMG

 1. On the displayed screen, choose SAP Reference IMG (F5).

Step 3: Navigate to Pricing Procedure Determination

1. Follow the IMG menu path:

SPRO → Sales and Distribution → Basic Functions → Pricing →
Pricing Control → Define and Assign Pricing Procedure → Define
Pricing Procedure Determination

Step 4: Open the Activity Screen

 1. On the activity screen, double-click on “Define Pricing Procedure
Determination.”

Step 5: Create a New Pricing Procedure Determination

1. On the Change View: Pricing Procedures: Determination in

Sales Docs screen, click on New Entries to create a new pricing
procedure determination entry.

Step 6: Configure the Pricing Procedure Determination

1. Enter the following details:

o SOrg (Sales Organization): Specify the sales organization key.

o DChl (Distribution Channel): Enter the distribution channel

key.

o DV (Division): Provide the division key.

o DoPr (Document Pricing Procedure): Define the document

procedure key.
 o CuPP (Customer Pricing Procedure): Specify the customer
procedure key.

o PriPr (Pricing Procedure): Assign the relevant pricing

procedure key.

o CTyp (Condition Type): Specify the condition type key.

🔍 Expand🔗 New Tab

Step 7: Save the Configuration

1. After updating all the required fields, click Save to save the
configuration details.

Key Considerations

 Custom Pricing Procedures: Based on client requirements, create

specific pricing procedures for different customer groups (e.g.,
wholesalers, online sellers).

 Sales Area Variations: Configure the determination for combinations

of Sales Organization, Distribution Channel, and Division to
handle different scenarios.

 Testing: Always test the configuration in a sandbox or development

environment before deploying it to the production system.

Conclusion
Pricing Procedure Determination is a critical configuration in SAP SD that
ensures accurate and automated pricing for sales documents. By following
this step-by-step guide, you can effectively configure pricing procedure
determination to meet diverse business requirements.

For more SAP tutorials, explore SAP Training Tutorials.

How to Define Credit Control Area in SAP

In this SAP tutorials you will learn what is credit control area and how to
define credit control area in SAP FICO step by step with real time scenario.

How to create credit control area in SAP

Important SAP configurations to refer:

 Define risk category

 Maintain fiscal year variant

 Define credit groups

What is Credit Control Area?

Credit control area in SAP is an organizational element that controls and

monitors credit limits of customers.

A credit control area can consists one or more company codes, but you can
not assign company code to more than one credit control area in SAP.

Scenario: – We need to define the following configuration.

Credit
Description
Control

Credit Control Area for TK

T120
Software

Credit control area configurations are generally shared by SAP SD

consultants and SAP FICO consultants. Some of the configurations are
implemented by SD consultants, so it is considered as mix of SAP FI and SD
consultant.

 Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial

Accounting – Define Credit Control Area

 Transaction code: – OB45

  Database Table: – T014, T014T

Step 1) Enter T-Code “OB45” in the SAP command field and enter.

Step 2) On change view “credit control areas” overview screen, click on

“New Entries” button to configure new credit control area as per company
requirements.

Step 3) On new entries credit control area screen, update the following
details.

 Cred.control.area: – Give the four digits alphanumeric key that

identifies credit control area in SAP.

 Description: – Update the descriptive text of credit control area. Now

this field remains blank, it allows you to update description after saving
this key.

 Currency: – Give the currency key

 Fiscal year variant: – Update the fiscal year variant key.

 Risk Category: – It is required to define the risk category of different

nature and assign them to credit control area.

 Credit Limit: – Under this field, you need to maintain credit limits for
customers.

 Organizational data: – If you choose all company codes options, than

this credit control area is applicable for company codes.

After updating the required details, click on save button to save the
configured detail.
Step 4) Now go back to main credit control area screen, click on position
button and give credit control key. So your credit control area key display at
the top of window screen.
Step 5) Update the descriptive text of credit control area and click on save
button to save the details.
Successfully we have defined credit control area in SAP. Next configuration
step is assignment of credit control area to company code in SAP.

How to Assign Credit Control Area to Company Code in SAP

Assign Credit Control Area to Company Code in SAP

In this SAP tutorial you will learn how to assign credit control area to
company code in SAP step by step. In our previous SAP tutorials we have
configured how to define credit control area in SAP.

Note: – After you define credit control area in SAP, it is mandatory to assign
to company code. Ensure that appropriate credit limit is specified in credit
control area, so you can determine credit limits via Accounts Receivable.

The link between credit control area and company code in SAP system is
established through the assignment of credit control area to company code.

Procedure

You can assign credit control area to company code in SAP by using
navigation method or transaction code.

 Navigation path: – SPRO – IMG – Enterprise Structure – Assignment

– Financial Accounting – Assign company code to credit control area

 Transaction code: – OB38

 Database Table: – T001

Step 1) Enter T-code “OB38” in the SAP command field and enter.
Step 2) On change view “Assign company code –>Credit control area“:
overview, click on position button and update your company code in the
given filed and press enter.

Step 3) Now your company code “TK01” display at the top of window
screen. Now update the credit control area key against your company code.

Step 4) Click on save button and save the configured details.

Successfully we have assigned credit control area to company code in SAP.

Assign Sales Area to Credit Control Area in SAP

How to assign sales area to credit control area in SAP

The following SAP SD tutorials guides you how to assign sales area to credit
control area in SAP step by step. In our previous training we have
learned how to assign sales group to sales office in SAP systems.

The link between sales area and credit control area is established through
this assignment in SA systems.

Assignment configuration steps

You can assign credit control area to sales area by using the following
navigation method.

 Transaction code: – SPRO

 Menu path: – SPRO > SAP Customizing implementation Guide >

Enterprise Structure > Assignment > Sales & Distribution >Assign
sales area to credit control area.

Step 1) Enter t-code SPRO in SAP command field as shown below image and
click on enter from your keyboard.

Step 2) On the next screen, click on SAP Reference IMG as shown below
image.
Step 3) Now navigate the following menu path as shown below image and
double click on assign credit control area to sales area.
Step 4) On change view sales area: allocation to credit control area
overview screen, click on position button and update sales organization key
“TKSO” in the given field and enter.

Step 5) Now assign credit control area to sales areas by updating the credit
control area key in the given field CCA.
After allocation of sales area to credit control areas as per the company
requirements, click on save button and save the configured details.

Successfully we have assigned sales area to credit control area in SAP

systems.

How to Define Risk Categories in SAP | What is Risk Category

How to Define Risk Categories in SAP

In this SAP tutorials, we will discuss what is risk category and how to define
risk categories in SAP step by step using transaction code OB01.

What is Risk Category?

With the help of risk category, you can divide the customers in to various
categories like low risk customers, medium risk customer, high risk
customers, etc. SAP system decides the action that should be taken when
the customer reaches the credit limit. When a customer assigned to high risk
category, than the customer get blocked for further purchasing until
receivable amounts are paid. Through risk categories, system automatically
determines the high risk categories and enables in blocking customers for
further purchases.

Configuration details

Risk
Name
Category

T01 Low Risk

 Medium
T02
Risk

T03 High Risk

Navigation

You define risk categories in SAP by using one of the following navigation
method i.e. Transaction code & Menu Path.

SAP
R/3 Role Define risk categories
Menu

Transaction
OB01
Code

SPRO(Tcode) > Implementation guide for R/3 customizing

SAP IMG => Financial Accounting => Accounts Receivable &
Path Accounts Payable => Credit Management => Credit
control accounting => Define risk categories.

Step 1 : – Execute Tcode “SPRO”

Step 2 : – Choose SAP Reference IMG.

Step 3 : – Follow the IMG menu path and click on img activity “define risk
categories”.

Step 4 : – From change view credit management risk categories overview

screen, click new entries button to create risk categories as per the
requirements of client.
Step 5 : – On new entries of credit management risk categories screen,
update the following required details.

 Risk Category : – Enter the new three digits key that defines as risk
category in SAP

 CCAr : – Update the credit control area key in CCAr field. This
assignment enables link between risk category and credit control area
in SAP.

 Name : – In this field, update the description of risk category key.

Click on save button or press ctrl+s and save the configured risk categories
details in SAP.

Successfully we have configured risk categories in SAP.

What is Credit group | How to Define Credit Groups in SAP

Learn what is credit group and how to define credit groups in SAP SD step by
step using transaction code “OVA6”.

What is credit group in SAP?

Credit group determines which transaction are to be blocked for processing if

the credit limits are exceeded. Credit groups are used to group various
business documents like sales order, quotations, etc. The credit limit check is
processed on the basis of data available in these documents and helps in
determining the amount of credit limit that can be assigned.
Configuration values

We are going to define the following credit groups in SAP

C
Document credit grp
G

Credit group for Sales

T1
order

Credit group for

T2
delivery

Credit group for goods

T3
issue

How to define credit groups in SAP SD

You can define or create credit groups in SAP using one of the following
navigation method.

Navigation

SAP R/3
Create credit groups
Role Menu

Transaction
OVA6
code

SPRO => IMG => Sales and distribution => Basic

SAP IMG
functions => Credit management and risk management
Path
=> Credit management => Define credit groups

Step 1 : – Execute Tcode “OVA6”

Step 2 : – On change view “Credit groups transaction types overview screen,

choose new entries button for defining new credit groups in SAP as per the
requirements of client and project.
From credit group new entries screen, update the following details.

 CG : –Update the two digits key that defines as credit group in SAP

 Document credit group : – Update the descriptive text of credit

group key that displays in SAP system.

After creation of all required credit groups, choose save button for saving the
details. Now the system prompts for the customizing request, choose
customizing request ans save the configured details in SAP system.

Assign Sales Documents and Delivery Documents in SAP

In this SAP SD Tutorial, you will learn how assign sales documents and
delivery documents in SAP using navigation menu path and transaction code
OVAK & OVAD.

Purpose of Configuration

After defining credit groups in SAP, you need to assign sales documents and
delivery documents to a particular credit groups for checking the customer
credit limits.

How to Assign Sales Documents and Delivery documents in SAP?

The link between sales document type and credit group is established
through through the assignment of sales document to credit group, link
between delivery documents and credit group is established through
assigning delivery documents to credit groups in SAP.
Navigation

SAP R/3
Assign sales documents & Delivery documents
Role Menu

Transaction
OVAK, OVAD
Code

SPRO => IMG => Sales and distribution => Basic

functions => Credit management and risk management
SAP IMG
=> Credit management =>Assign sales documents and
Path
delivery documents => Credit limit check for order
types/delivery types.

Step 1 : – Execute Tcode “SPRO” from SAP easy access screen.

Step 2 : – Choose display SAP reference IMG (F5).

Step 3 : – From display IMG screen, follow the navigation menu path and
choose img activity SD -Basic functions -credit management and “Assign
sales documents and delivery documents.

Step 4 : – A choose activity dialog box appears with the activities

 Credit limit check for order types

 Credit limit check for delivery types.

Assign Sales Documents

Step 5: – Double click on credit limit check for order types for assigning a
credit group to the sales document type which is sales order type.

On change view sales document types – credit limit check overview screen,
select the required sales document types and assign credit group key T1.

Click on save button to save the details.

Assign Delivery Documents

Press F3 or click on back option, from choose activity screen, double click on
credit limit check for delivery types.

Select the required delivery type and assign the corresponding credit groups
respectively to block the delivery and goods issue.

After assigning document types for credit limit check, click on save button
and save the configured assignment details in SAP Systems.

How to Maintain Credit Limit for Customers in SAP

Learn how to maintain credit limit for customers, master data for customer
credit management in SAP.

Maintain Credit limit for customers in SAP

In this activity, you specify the customers for whom the credit limits are to be
maintained and specify credit control area of the customers.

Navigation

SAP R/3 Role

Master data for customer credit management
Menu

Transaction
FD32
Code

SAP Menu => Logistics => Sales and Distribution =>

SAP Path
Credit Management => Master Data =>FD32-Change.

Set credit limit for customer in SAP – Configuration steps

Step 1 : – Execute Tcode “FD32” from SAP easy access screen.

Step 2 : – From the screen, customer credit management change initial
screen, enter all the required details customer number, credit control
area and choose all fields of address, central data, status and payment
history.

Step 3 : – Choose next screen option (Shift+F1) to go for the next screen of
customer credit management screen. From the customer credit management
change status screen, update the following details.

 Credit Limit : – Specify the credit limit for customers, the amount you
in this field enables the maximum credit limit allowed for customer.
  Risk Category : – Specify the risk category of the customer.

 Last interval review : – Specify the date on which customer credit

units are last reviewed

 Next Interval review : – Specify the date on which credit limits for
customers are going to be review.

Payment history : –

On customer credit management : payment history screen, the system

displays the payment history of customer. You can check all the payment
history details in this screen. However we have not done any payment with
this customers, so system displays as blank payment details.
Central Data

From the menu > Goto => Generaldata => Central data.

 Total Amount : – Enter the amount that specifies the overall credit
limit the customer may receives in all the credit control area.

 Individual Limit: – Enter the amount that specifies the maximum

credit limit the customer may receives within a credit control area.
Click on save button and save the details.

Successfully we have maintained credit limit for customers in SAP.