SAP Sales and Distribution Module (SD)

SAP Sales and Distribution Module (SD)
Sales and Distribution (SD)
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The Sales & Distribution (SD) business process is the means through which an entity secures and processes orders from customers (Sales Order Processing), initiates the delivery of products or the provision of services (Outbound Logistics), and bills the customer for products shipped or services rendered (Billing). The SD process must, therefore, access data on customers, be integrated with Materials Management (MM) in order to establish product delivery, and be integrated with Financial Accounting (FI) in order to provide data on receivables due from billings generated.
1. Organizational structure, master data, and integration in Sales and Distribution

Sales processing is based on the following basic structures: Every company is structured in a certain way. In order to work with the SAP System your company structure has to be represented in the system. This is done with the help of various organizational structures. For SD the organizational structure of the Sales Organization is the structural elements of the sales process are accomplished. In sales and distribution, products are sold or sent to business partners or services are performed for them. Data about the products and services as well as about the business partners is the basis for sales processing. Sales processing with the SAP R/3 System requires that the master data has been
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SAP Sales and Distribution Module (SD) stored in the system. Because products and services are the deliverables of the SD process, the SD process must be linked to the MM logistical process. Given that sales occur to customers (business partners) the SD process must contain data identifying the attributes of those customers. In addition to sales and distribution, other departments of the company such as accounting or materials management access the master data. The material master data is stored in a specific structure in order to allow access from these different views.
The processing of business transactions in sales and distribution is based on the master data. In the SAP R/3 System, business transactions are stored in the form of documents. These sales and distribution documents are structured according to certain criteria so that all necessary information in the document is stored in a systematic way.
2. Organizational Structures in SD
In the SAP R/3 System you can use several structures to represent the legal and organizational structure of your company. The organizational structures form a framework in which all business transactions can be processed. In SD the elements of organizational structure include client, company codes, sales organizations, distribution channels, divisions, plants, sales offices, sales groups, sales persons, shipping points, loading points, and sales areas. You link the organizational structures in SD with those in Financial Accounting and Materials Management. You maintain and assign the organizational units in Customizing for the enterprise structure. The following graphic displays these organizational elements.
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Sales organization
The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements. A sales organization is responsible for the sale and distribution of goods and services. It represents the selling unit as a legal entity. It is responsible for product guarantees and other rights to recourse, for example. Regional subdividing of the market can also be carried out with the help of sales organizations. Each business transaction is processed within a sales organization. The sales organization must be specified in all sales documents. It is therefore available for all basic functions of SD (such as pricing, availability, etc.). Structure A sales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel. Several divisions can be assigned to a sales organization which is responsible for the materials or services provided. A sales area determines which distribution channel can be used to sell the products from one division in a sales organization. Each sales organization is assigned exactly one company code for which you enter all accounting details of the sales organization. A distribution chain can be active for several plants and the plants can be assigned to different company codes. If the sales organization and plant are assigned to different company codes, an internal billing document is sent between the company codes before the sales transactions are entered for accounting purposes.
Distribution channel
The distribution channel represents the channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales. Within a sales organization a customer can be supplied through several distribution channels. In addition, the material master data relevant for sales, such as prices, minimum order quantity, minimum quantity to be delivered and delivering plant, can differ for each sales organization and distribution channel. Structure A single distribution channel can be assigned to one or more sales organizations.
Division
In the SAP R/3 System you can define a division-specific sales organization. Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries,
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SAP Sales and Distribution Module (SD) pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing procedures.
Sales Areas
SD is organized according to sales organization, distribution channel and division. A combination of these three organizational units forms the sales area. A sales area is a specific combination of sales organization, distribution channel and division. The following graphic displays these organizational elements.
In sales organization 1000, sales and distribution transactions can be carried out through all distribution channels and for all divisions. In sales organization 2000, products of both division 01 and division 02 are only sold through distribution channel 10. In sales organization 3000, only products of division 01 are sold, and only through distribution channel 10.
Creating a sales area allows you to exclude certain combinations of the different organizational areas.
3. Internal Organization in Business Development and Sales

The organization in Sales is represented by the elements sales office, sales group and salespersons. The following figure displays a sample organization in business development and sales.
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Sales office Geographical aspects of the organization in business development and sales are defined using the term sales office. A sales office can be considered as a subsidiary. A sales office establishes contact between the firm and the regional market. As an example, the branch of a firm in New York, Main Street 1 can represent a sales office Sales group The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions. Salespersons You can maintain personnel master records for sales representatives in your company. In the personnel master record, you assign the salesperson to the sales office and the sales group. You can also enter the system user name of the sales person. This allows mails to be sent to the salesperson (define the partner function for sales personnel in the sales document). Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a certain sales area, the sales office must be assigned to that area. The sales groups are assigned to the sales offices. The salespersons are assigned to the sales group and the sales office via the personnel master record.
4. Organization in Shipping and Transportation

Independent organizational entities, such as shipping points, are responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to
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SAP Sales and Distribution Module (SD) your own warehouses. A delivery is always carried out by one shipping point only. The shipping point depends on the following criteria:

Delivering plant Type of shipping (for example, train, truck) Loading equipment necessary
Loading Point Shipping points can be subdivided into loading points. For example, ramp 1, ramp 2 and ramp 3 belong to the shipping point Forwarding depot. The following figure displays a possible organization in shipping.
Transportation Planning Point The transportation planning point is an organizational unit in Logistics, responsible for planning and processing transportation activities. It organizes the responsibilities in a company, e.g. according to shipment type, mode of transport or regional departments. The shipping point is assigned to a plant. Loading points are assigned to shipping points.
5. Link between Sales and Distribution and Accounting

By assigning sales organizations and plants you create a link between company codes and sales organizations. A plant, though always linked to one company code, can be assigned to different sales organizations. Within a company code several sales organizations can be active. Business transactions can also be carried out between different company codes (for example, during inter-company sales processing). The following figure displays possible assignments of company codes, sales organizations and plants.
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Plants 1, 2 and 3 belong to company code 1. Sales organization 1 uses plants 1 and 2. Sales organization 2 uses plants 2 and 3. Sales organizations 1 and 2 can make crosscompany sales for goods from plants 4 or 5.
6. Link to Materials Management Structure

The plants allowed for sales are determined for each sales organization according to the distribution channel, so that a sales organization can sell goods from several plants. A plant can be assigned to different sales organizations. All of these sales organizations can sell from that plant. You can differentiate further between the plants belonging to a sales organization from the sales view using the distribution channel. For certain plants within a sales organization, the distribution channel "sales from plant" is allowed, but not for others. The following figure shows an assignment of sales organizations and plants.
Sales organization 1000 sells from plants 1000 and 2000 Sales organization 2000 only sells from plant 2000 Sales organization 3000 only sells from plant 3000
7. Customer Master Records

Data on customers is important for both the accounting department and the sales and distribution department. In order to avoid data redundancy, accounting data and sales and
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SAP Sales and Distribution Module (SD) distribution data is stored in one master record, the customer master record. You create a customer master record for customers with whom your company has business contacts. This master record contains all data necessary for processing the business transactions. Maintaining the master data correctly can greatly reduce the work needed to process transactions. This is because the master data is automatically copied into the transactions. Both the accounting department and the sales and distribution department have access to the customer master record. In order to avoid data redundancy, the data for both departments is stored in a common master record. General data, company code data, and sales and distribution data is stored separately in the customer master record. Company code data depends on the company code organization. It is defined individually for each company code. Sales and distribution data depends on the organization in the sales area. It is defined individually for each sales area. General data is independent from company code and sales area. It applies to one customer in all company codes and sales areas. Data in the Customer Master Record Different data is maintained in each of the three areas:
General data is maintained for every customer. Such as address, communication, etc. This data is identifiable only via the customer number, not via the number of the company code or the sales area. Maintaining the data is possible from both the accounting view and the sales and distribution view. Company code data is only of interest for the accounting department. It includes, for example, information on insurance or account management. This data applies to only one company code. Sales and distribution data is only of interest for the sales and distribution department. It includes, for example, data on pricing or shipping. This data only applies to one sales area, and therefore is dependent on the sales structure (sales organization, distribution channel, division).
8. Customer Master Record Structure

The following figure displays the structure of a customer master record.
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SAP Sales and Distribution Module (SD) General data General data does not depend on the company code, or on your company's organization of sales and distribution. Data on a customer is the same in both views. This includes, for example, the customer name, address and telephone number. However, general data is not limited to the information which is of importance to both departments. The unloading point, for example, which is regarded as general data, is only relevant for sales and distribution. However, since it is not based on the sales and distribution organization of your company and is always unique for this customer, it is not considered part of the sales and distribution data. If you edit a customer master record using only the customer number, without specifying a sales and distribution area or a company code, the system will only display the general data screens. General data is entered by the department which first creates the customer master record for a customer. If the sales and distribution department creates the customer master record, it must also enter the address data. When the accounting department enters accounting data it is then unnecessary for them to enter the general data also. They can use the display function to access the general data.
Company Code Data This data is only of importance to the accounting department. It includes, for example, data on insurance and account management. Company code data only applies to one company code. If you edit the customer master record you must specify customer number and company code in order to access the screens containing company code data.
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Sales and Distribution Data This data is only of importance to sales and distribution. It includes data on pricing, delivery priority and shipping conditions. The data for one customer can differ for each sales area. The sales area is a combination of sales organization, distribution channel and division. Only after entering the sales and distribution data for a customer can you process sales and distribution transactions for the customer (for example, a sales order). Also, you can only invoice a business transaction if the data on the payer has been maintained from the financial accounting view. If you edit the customer master record you must enter the customer number and the sales area in order to access screens containing sales and distribution data. Menu Access According to the Department In the system you can access department-specific data via menus: If you want to define customer data for sales you access the customer master record through the sales and distribution menu (Logistics). If you want to enter data for the accounting department, you access the customer master record through the accounting menu. You can use both initial menus to edit the customer data centrally, i.e. from both the sales view and the accounting view. In sales and distribution, central maintenance is only provided for the business partners sold-to party and payer, for which central maintenance is worthwhile.
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9. Texts in Master Records

The following figure shows some of the texts which are defined for customer and material master records in the standard version of the SAP R/3 System.
10. Customers and Business Partners

A company deals with different natural and legal persons during business transactions. A customer orders goods from a company. A forwarding agent might deliver goods to the customer. An employee within the company processes the business transactions. All roles a natural or legal person can assume are represented by business partners in the SAP R/3 System. Business partners A company has contact with its business partners, who are customers and vendors. Data on each of these and on the company's personnel is stored in a separate master record. Customers The term "customer" is used to define all customers to whom the company has contact. The term "vendor" is used to define all business partners who carry out a delivery or a service for the company. A business partner can be a customer and a vendor at the same time if, for example, your customer also supplies goods to you. In this case, both a customer master record and a vendor master record must be created for the business partner. You can create a link between the master records by entering the vendor number in the customer master record and the customer number in the vendor master record. Vendors Data on business partners who are vendors, for example, forwarding agents, is managed in the vendor master record. If a vendor is also a customer, a link can be created.
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SAP Sales and Distribution Module (SD) Personnel Data on employees of your own company, for example, sales personnel or clerical staff, is managed in the personnel master record. Data on each employee can be managed by his or her personnel number. Only the personnel department of your company is authorized to create a personnel master record, using Human Resources (HR). The personnel department of your company manages the personnel numbers of the employees. If HR is not used in your company you can also create a personnel master record yourself for employees in sales and distribution.
11. Partners in the Customer Master Record

In sales and distribution there are:
Business partners A customer master record must be created for business partners. Contact Persons with the Business Partner A contact person is the person you deal with at the customer. Data on contact persons is stored in the customer master record of the respective business partner. A separate master record for contact persons is not created. A new number is assigned to each contact person within a customer master record.
Business partners A business partner can be a natural or legal person who is directly involved in a business transaction with you. The following partner functions are defined in the system: Sold-to party Ship-to party Payer Bill-to party sold-to party Person or company that places an order for goods or services. The sold-to party can also perform the functions of the payer, bill-to party or ship-to party. For the sold-to party, data on sales is necessary (for example, the assignment to a sales office or to a valid price list). In most cases, the company which places an order for the delivery of goods or the rendering of services is at the same time ship-to party, payer and bill-to party. For this reason in the SAP R/3 System the function sold-to party includes all these other functions. ship-to party Person or company that receives the goods.
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SAP Sales and Distribution Module (SD) The ship-to party is not necessarily the sold-to party, the bill-to party or the payer. For the ship-to party only data required for shipping is necessary (for example, unloading point and goods receiving hours). Bill-to party Person or company that receives the invoice for a delivery or service. The bill-to party is not necessarily the payer who settles the bill. For the bill-to party you need the address, data on output and possibly data on electronic communication. payer Person or company that settles the bill. The payer is not necessarily the bill-to party. A payer is a company or person who settles the invoices for delivered goods or rendered services. For the payer data on billing schedules and bank data is necessary. Contact Persons with the Business Partner In your customer's company there is always one or more contact persons with whom you are in contact either by phone, in writing or personally to carry out business transactions. Often, the information you need about the contact persons is not the same as the information you need about the customer. The most important data of the contact person is name, telephone number, and department. Since the contact person is part of the customer's company, you enter this data in the respective customer master record. Thus, you do not need a separate master record for contact persons. However, in the standard version of the SAP R/3 System you can only enter the data on the contact person in the customer master record of the sold-to party, since only contact persons from this master record are proposed for selection in the sales order. Dividing Partner Functions The company or person who places an order is often the same company or person who receives both the goods and the invoice, and also pays. In this case the customer fulfills all predefined functions. It is also quite common, however, that subsidiaries place orders, and the head office settles the respective invoices. In this case the partner functions are divided among different companies. If a customer fulfills all functions at the same time, only one master record is necessary, in which all data required for these functions is entered. In this case you create a master record for the sold-to party. If the functions are divided among different companies, a corresponding number of master records are needed. In one master record you enter, for example, the address of the soldto party for correspondence, in another one the address of the ship-to party for the delivery. Only in the customer master record of the sold-to party is a link between the
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SAP Sales and Distribution Module (SD) individual partners established, and this is done by entering the customer number of the respective partners. Screen and Field Selection for Partner Functions When you enter a customer master record for the ship-to party, you need special data for shipping (for example, the unloading point and goods receiving hours). In this case, data on sales or billing is not necessary, providing the ship-to party is not the payer and sold-to party at the same time. You can limit the screens and fields accessed in the customer master record so that only the necessary data is entered. You do this using account groups. The function of a customer is defined by assigning an account group.
12. Data in the Customer Master Record

A customer master record contains all data needed for business transactions and correspondence with the customer. This includes address data, shipping data, sales data, and data for invoice creation. Data Groups in Sales and Distribution The following figure shows the data important for the sales and distribution department.
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Accessing Sales and Distribution Data in the Customer Master Record You access this data using the sales and distribution menu. Depending on the data groups to be edited, you enter the data that is listed in the column "Access through". Accessing the Data Groups Types General data Access through Customer number Data groups Address Control data Marketing Payment transactions Contact person Unloading points Address Control data Marketing Payment transactions Contact person Unloading points Sales Shipping Billing Output Partner functions
Sales and Distribution data
Customer number Sales organization Distribution channel Division
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Creating a Customer Master Record
You create a customer master record when you start a business relationship with a new customer. Customer master records can be created for the following business partners:
Customer: Ship-to party Payer Bill-to party One-time customer including all partner functions
Create with reference: Using a Reference for Customer Master Record Creation
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SAP Sales and Distribution Module (SD) If a customer master record with similar data already exists, you can enter its number in the field Customer in the reference section of the initial screen, which will reduce the effort required to create the new master record. If you enter only the customer number in the reference section, the system will copy only the general data into the new customer master record. If you also enter data on the sales area, the sales and distribution data will also be copied. Only data which can be identical for both master records is copied. For example, address and unloading points are not copied, while country, language and account group are. You can change all copied data. If you create a customer master record for a customer for whom a customer master record in another sales area already exists, the general data will not need to be entered again for the second master record because it already exists in the system. Create an already available customer master record for a new sales area If you create a customer master record for a customer, for which a customer master record already exists in another sales area, then use the customer that has already been created as a reference. In this case you do not need to enter the general data for the second master record again. Master Data Grouping You can specify that customer master records which have been created in a particular sales organization for a specific distribution channel and division are also valid in other distribution channels and/or divisions. This means that you only have create master records which you require in various distribution channels once. This can save you a lot of time and effort. You can use the same function to edit material master records and prices.
Master data grouping for distribution channels. At distribution channel level, you can specify the other distribution channels in which prices and customer and material master records are also valid.
Master data grouping for divisions At division level, you can specify the other divisions in which customer master records and prices are also valid.
You make the settings in customizing.
14. Products and Services

Products and services are combined in the SAP R/3 System under the term material. All information necessary for the management of a material and its stocks, as well as its use,
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SAP Sales and Distribution Module (SD) is maintained in the so-called material master record. This includes, for example, data on purchasing, on sales and on storage. Different company areas and SAP modules access the material master records, which therefore must meet a wide variety of requirements. During sales processing, the system repeatedly accesses the material master records. It is one of the basic sources of data for sales processing. The material master record is accessed, for example, in the inquiry, in the quotation and in the sales order. Data in the material master record is also of great importance for shipping and billing. However, the data required for shipping, for example, is not the same as that required for sales or billing.
15. Material Types

Material types in the SAP standard version are, for example, raw materials, trading goods, semi-finished products, finished products, or services. The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material, or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance. Depending on the material type, company areas maintain different data screens. This screen selection applying specifically to an application is called a "view". The following are examples of possible material types in the SAP standard version: Trading Goods Non-stock Material Services Packaging Material Trading Goods Trading goods are movable goods intended for commercial exchange. Examples of trading goods are market goods, consumption goods and durable goods. Trading goods are always bought and re-sold by your company. The material master record for trading goods therefore always contains purchasing data and sales data. Trading goods are managed in the SAP R/3 System using the key HAWA. Non-stock Material Non-stock material includes materials that are not managed on an inventory basis (for example, small parts such as nails) though physically in stock. Non-stock materials are managed in the SAP System using the key NLAG. Services Services are represented and managed in the SAP System as materials. Services are immaterial goods that differ from other goods, particularly in that their production and
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SAP Sales and Distribution Module (SD) consumption coincide. Services are generally regarded as non-transportable and nonstockable. Typical services are commercial services, transport services, bank and insurance services, goods from cultural organizations and the mass media, as well as services provided by the public security forces or the education and health sectors. Since services cannot be stored, a material master record of this material type does not contain inventory data or inventory management data. No fields for gross weight, net weight or unit of weight are included in the basic data for a service, as are for other material types. Services are managed in the SAP R/3 System with the key DIEN. Packaging Material This material type includes all materials needed for packaging. For example, boxes or crates. Packaging materials are managed in the SAP R/3 System with the key VERP. Other Material Materials which cannot be assigned to any of the standard material types can be maintained, as "Other material". Thus, besides standard material types (trading goods, finished products, services etc.) you can also create additional material types. When creating such a material, note that a material type must be entered on the first data screen. For standard material types, this entry is not necessary because the material type is selected in the menu.
16. Organizational Structure of the Material Master Record

Each company has a specific structure and a typical organization. This is represented in the SAP R/3 System as an organizational structure. A certain part of the organizational structure is relevant for every company area. Organizational Levels An organizational structure consists of several organizational levels. These are used by different company areas. The organizational levels sales organization and distribution channel are, for example, used exclusively by sales and distribution while plant and storage location are shared by sales and distribution and materials management. The sales and distribution data for a material is managed at the organizational levels client, plant, sales organization and distribution channel. Therefore, you have to enter the plant, the sales organization and the distribution channel for which you want to change a material master record. If a material which is available both in plant 1 and plant 2 is to be changed in plant 1, enter only that plant number. You then only get the plant data for this material in plant 1. If you only enter the sales organization and the distribution channel, then you get the sales-specific data without plant data.
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SAP Sales and Distribution Module (SD) Using the organizational level distribution channel, you can, for example, sell materials with different conditions. The prices agreed for distribution channel wholesale trade, for example, are not the same as those for distribution channel retail sales.
17. Data Structure of the Material Master Record

All data and information entered for a material is stored in the data structure of the material master record. For sales and distribution, general data and sales and distribution data in the material master record are relevant. General data General data in a material master record is identical for every sales organization, plant and storage location. General data, which is of importance for all departments, is always entered by the department which creates the first part or view of the master record. General data contains, for example, the material number that identifies it, the material description, units of measure, value, weight, volume and divisions. Sales and Distribution Data Sales and distribution data in a material master record is defined for a specific sales organization and distribution channel. The delivering plant, the assignment to the sales group, grouping terms for price agreements and sales texts, for example, are included in sales and distribution data. The fact that a material is linked to a distribution channel allows the material to be sold with different conditions through the various distribution channels. Sales and distribution data is divided into data that depends on the sales organization and data that depends on the plant:
Sales organization/distribution channel data This data includes the delivering plant, the sales unit, the minimum order quantity and the minimum delivery quantity. Plant data This data applies to a plant and all its storage locations. Examples of plant data are Material Requirements Planning (MRP) data, such as the safety stock quantity, the reorder level, or the shipping processing time.
Sales and Distribution Screens in the Material Master Record

Four screens in the material master record are relevant for sales and distribution: Sales 1 Sales 2 Sales/Plant Data Texts in Sales and Distribution
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SAP Sales and Distribution Module (SD) The following overview includes a short description of the individual sales and distribution screens, and lists the important data fields found on these screens. Sales and distribution screens Sales 1 Sales 2 Sales/Plant Data Texts in Sales and Distribution Description and important data fields Basic data and units of measure (e.g. sales units, order quantities) Material groupings and tax classification (e.g. product hierarchy, material pricing group) Sales and shipping data (e.g. gross weight, loading group) Single-line or multi-line texts for sales documents, in several languages
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Units of Measure and Quantity Specifications

Units of Measure A material can be stored, transported and sold in various units of measure. In the SAP R/3 System, you can therefore define various units of measure which are maintained in the sales and distribution screens. However, you only need to maintain the fields of the units of measure if they deviate from the base unit of measure. If no other fields with units of measure are maintained, the system automatically takes the base unit of measure as a basis for its calculations. You can enter the following units of measure in the sales and distribution screens: Base Unit of Measure Alternative Unit of Measure Sales Unit Delivery Unit Base Unit of Measure Stocks of a material are managed in the base unit of measure. All quantity movements in other units of measure are converted automatically by the system into the base unit of measure. Alternative Unit of Measure As soon as units of measures other than the base unit of measure are used in a material master record, the system prompts you in a dialog box to enter a calculation factor to the base unit of measure, the so-called alternative unit of measure. The alternative unit of measure does not refer to an entry field in one of the sales and distribution screens. It is either requested in a dialog box or entered on a secondary screen, which you can access by pressing F5 (Unit of measure). Several alternative units of measure can be defined. If, for example, a product is managed in the base unit of measure "Piece" but is sold in the sales unit "Box", you must define the conversion factor. The alternative unit of measure can define, for example, that 1 box of this material contains 12 pieces. Sales Unit The unit of measure in which materials are sold is referred to as a sales unit (for example, piece or bottle). The value you define in the material master record is proposed during business transactions relevant for sales, such as the sales order. You can replace them with other alternative units of measure in the sales order. Delivery Unit
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SAP Sales and Distribution Module (SD) The delivery unit refers to the unit in which materials can be delivered. Only exact multiples of the delivery unit can be delivered. For example, with a delivery unit of 30 bottles, 30, 60 or 90 bottles can be delivered, but not 100 bottles. Quantity Specifications Two different quantity specifications are used: Minimum Order Quantity Minimum Delivery Quantity Minimum Order Quantity The minimum order quantity refers to the minimum quantity the customer must order. A warning message appears if the minimum order quantity is not reached during order entry. The order can be entered in spite of the warning message. Minimum Delivery Quantity The minimum delivery quantity refers to the minimum quantity you must deliver to the customer. The minimum delivery quantity is automatically checked during delivery processing. A warning message appears during delivery processing if you enter a delivery quantity lower than the minimum delivery quantity. The delivery can be created in spite of this warning message.
18. Delivering Plants

The delivering plant refers to the plant from which the goods are to be delivered to the customer, within a specific sales organization and distribution channel. The plant can be automatically proposed by the system when processing a sales order, if it has been maintained in one of the master records. It can be derived from: the customer/product info record the customer master record of the ship-to party the material master record. The order of priority is as in the list above.
19. Customer Material Information

Data on a material defined for one specific customer is stored in the customer material information records. This data includes

the customer-specific material number the customer-specific material description customer-specific data on deliveries and delivery tolerances
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SAP Sales and Distribution Module (SD) If, for example, one of your customers uses a number for a material, which differs from the number your company uses to identify it, you can store the material number used by the customer in the customer material information record. Features During order entry, items can be entered by specifying the material number used by the customer. You also enter a customer material number in the order view of the sales order. You can then use both material numbers during the order entry, the material number your company uses or the one defined by the customer, because the system can carry out allocation automatically. Data on the delivery and the individual delivery tolerances agreed upon with the customer for the material in question can also be checked and transferred to the sales order item. You can also store a text in the customer material information record. It is copied to the relevant SD document items during text determination. In Customizing, the text type Customer Material Text is provided for this.
20. Sales Transaction Processing

Sales allows you to execute different business transactions based on sales documents defined in the system. Four groups of sales documents are differentiated: Customer inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements Complaints, such as free of charge deliveries, credit and debit memo requests and returns Deliveries and billing documents can be created and processed from the sales document. Some sales documents, such as cash sales and rush orders, automatically trigger the creation of subsequent deliveries and billing documents.
21. About Sales Documents

Sales-related business transactions are recorded in the system as sales documents. These are grouped into four categories: Pre-sales documents: inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements Customer problems and complaints, leading to free-of-charge deliveries and credit memo requests
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SAP Sales and Distribution Module (SD) If your particular business processes require it, you can process deliveries and billing documents directly from a sales document. In addition, some sales documents, such as cash sales and rush orders automatically trigger the creation of subsequent delivery and billing documents. Basic Functions Within Sales Order Processing During sales order processing, the system carries out basic functions, such as: Monitoring sales transactions Checking for availability Transferring requirements to materials planning (MRP) Delivery scheduling Calculating pricing and taxes Checking credit limits Creating printed or electronically transmitted documents (confirmations and so on) Depending on how your system is configured, these functions may be completely automated or may also require some manual processing. The data that results from these basic functions (for example, shipping dates, confirmed quantities, prices and discounts) is stored in the sales document where it can be displayed and, in some cases, changed manually during subsequent processing. Document Flow in Sales The sales documents you create are individual documents but they can also form part of a chain of inter-related documents. For example, you may record a customers telephone inquiry in the system. The customer next requests a quotation, which you then create by referring to the inquiry. The customer later places an order on the basis of the quotation and you create a sales order with reference to the quotation. You ship the goods and bill the customer. After delivery of the goods, the customer claims credit for some damaged goods and you create a free-of-charge delivery with reference to the sales order. The entire chain of documents the inquiry, the quotation, the sales order, the delivery, the invoice, and the subsequent delivery free of charge creates a document flow or history. The flow of data from one document into another reduces manual activity and makes problem resolution easier. Inquiry and quotation management in the Sales Information System help you to plan and control your sales. The following graphic shows how the various types of sales documents are inter-related and how data subsequently flows into shipping and billing documents.
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The Role of Organizational Structures in Sales Documents Sales transactions occur within the organizational structure of sales and distribution. This means, for example, that all sales activities are allocated to a sales organization, a distribution channel and a division. Since sales activities within your organization are processed in different geographical locations, the system allows you to specify additional organizational structures that define sales offices, sales groups, and sales people.
22. Sales orders

Request from a customer to a company to deliver a defined quantity of products or provide a service at a certain time. The sales area that accepts the inquiry is responsible for completing the agreement. In sales order processing, the system implements various functions: In the sales order, functions such as pricing and printouts are available. The system checks whether the material is available for the requested delivery date and if necessary, transfers the requirements to materials planning. Shipping deadlines and shipping points are determined in delivery scheduling.

In cash sales the goods are paid for in cash. In a rush order transaction, the customer picks up the goods or you deliver the goods on the same day as the order is placed. However, the invoice is created later.
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Features You can process sales orders in the SAP R/3 System differently, depending on your specific needs. In the simplest case, you can enter a sales order with several items in a single screen. The system automatically proposes data from the relevant master records:
From the customer master record of the sold-to party, the system proposes sales, shipping, pricing, and billing data. In addition, the system copies customer-specific master data about texts, partners, and contact people at the customer site. For each material in the sales order, the system automatically proposes data from the relevant material master records, such as data for pricing, delivery scheduling, availability check, tax determination, and weight and volume determination.
The data proposed by the system can be used as a basis for your order. If your sales order processing requires it, you can modify this data manually or add new data. For example, your pricing policy may allow you to manually change the value of certain discounts within a permitted range. In addition, you can branch in the sales order to a number of different screens where you can display and modify data, such as terms of payment and delivery data. Using Existing Documents as a Reference It is also easy to create a new sales order with reference to an existing document. For example, if a customer accepts a quotation you sent, the system can copy all the relevant master data from the quotation when you create the sales order. Standard Functions During Order Processing When you process a sales order using the standard version of the SAP R/3 System, the system can automatically carry out basic functions, such as the following:
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SAP Sales and Distribution Module (SD) Pricing Availability check (if this function is defined in the material master record) Transferring requirements to materials planning (MRP) Delivery scheduling Shipping point and route determination Checking credit limits
Structure A customer inquiry comprises one or more items that contain the quantity of a material or service entered in the order. The total quantity of a sales order item can be subdivided into schedule lines that contain the various subsets with the corresponding delivering dates. Items can be structured in a hierarchy. This enables you to differentiate between batches or explode any combinations of materials (bills of material1). The conditions2 which are valid for the items are listed in the item conditions. The conditions for an item can be derived from an entire condition, which is valid for the entire sales order. An item can be subdivided into several billing plan deadlines that each determines a date on which a fixed amount of the item is to be billed. Not only the customer but also other business partners can be specified as sold-to parties in different partner functions (for example, ship-to party). The items in a sales order can be taken from the times in a customer quotation. Delivery Times/Commitment Dates in Sales Orders You can enter a delivery time in contracts and quotations. In the contract, the delivery time fixes the time period that the customer has given the vendor between contract release and delivery receipt.
Bill of Material (BOM): A complete, formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items.
2
Conditions: Prices, surcharges/discounts, tax, and other costs according to the influencing factors selected (such as vendor, customer, customer group, vendor sub-range, material, and service). It remains valid for a specified period. Example: From Jan 1 to June 30 of the current year, a price of USD 150 is agreed with customer Miller Inc. for purchase of the "luxury shelves" material from sales organization "North" and distribution channel "Retail".
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SAP Sales and Distribution Module (SD) In quotations, the delivery times enables you to agree on a guaranteed maximum delivery time once the order has been entered. In the sales order, a committed quantity and date are issued alongside the confirmed quantity calculated by the availability check, which enables you to see whether committed quantities and delivery dates have been complied with. Features You can specify the delivery time at header level and this influences the delivery times for all items in a quotation or contract but you can also enter different delivery times for single items at item level. Enter the delivery time at header level in the Delivery time field on the Sales tab page for the overview screen. Enter the delivery time at item level in the item table in the DlyTime field. When you create a sales order with reference to a contract or quotation the system copies the delivery time into the sales order item. If you do not enter a delivery, nothing changes in sales processing. Commitment Dates in the Sales Order In the schedule line screen for the sales order items there are fields for the committed quantities and dates. In a normal sales order, the commitment date results from the first availability check. If a second availability check results in different data, you can compare the two to see if the availability situation for a sales order item has improved or deteriorated. The commitment date is calculated using the delivery time in contract releases with a delivery time, or in sales orders that refer to a quotation with a delivery time. The committed quantity is calculated from the agreed delivery time or from the confirmed quantity, according to the settings you made in Customizing. If you change the material, quantity, delivery date or delivery time in the sales order, the system recalculates the committed quantity. You can configure how the commitment dates are calculated in Customizing for the sales document type in the Commitment date field. You can choose one of the following rules:
A: Consider agreed delivery time only Here, all the required schedule lines are committed for the date that follows the delivery time at the distance agreed on when you entered the sales order. If the customer requires a later date, this date is confirmed. The commitment situation does not influence the calculations and if you dont specify a delivery time, the
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SAP Sales and Distribution Module (SD) system does not calculate any committed quantities.
B: Calculation after the first confirmation date The committed quantity is calculated from the first commitment situation. If a delivery time is available for the item, the system takes it into account in calculation rule A and the system commits the quantity for the earlier date. If you change the material, quantity, delivery date or delivery time in the sales order, the system recalculates the committed quantity. In each case the current commitment situation is valid when you save the document.
C: Calculation after the first confirmation date If you enter new items, rule C corresponds to rule B. If you save the document again and the customers commitment situation has improved, the system saves the better situation as the committed one. As in calculation rule B, the system recalculates the commitment dates if you change the material, quantity, requested delivery date or delivery time.
No entry: The system does not calculate or display commitment dates.
The committed delivery date is issued in the order confirmation and the agreed delivery time is included in the printout of the contracts and quotations. Delayed Sales Order Indicator There is a status field for the sales order header and items that specifies whether the availability check has covered the commitment for undelivered order quantities. If you choose matchcode M, you can display all sales documents that have the "delayed" status. A delayed sales order is one where the committed quantities could not be either completely or partially committed, or where the quantity will be not be confirmed as committed until a later date.
23. Returns
A sales document that is used in complaints processing for when a customer returns goods. If the customer returns damaged goods, or goods that were delivered for sale on approval, you can enter a return in the system. The return causes the system to create a returns delivery to register that the goods have been received, and post the goods to stock (e.g. blocked stock) create a credit memo, once you have checked the goods and approved the complaint
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24. How Sales Documents are Structured

All sales documents have basically the same structure. They are made up of a document header and any number of items. The items can in turn be divided into any number of schedule lines. The following graphic shows the structure of a sales document:
The following graphic demonstrates how these data are presented in a sales document.
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SAP Sales and Distribution Module (SD) Header data The general data that is valid for the entire document is recorded in the document header. For example, Number of the sold-to party Number of the ship-to party and the payer Document currency and exchange rate Pricing elements for the entire document Delivery date and shipping point Item data Whereas data in the document header applies to all items in the document, some data applies only to specific items. This data is stored at item level and includes the: Material number Target quantity for outline agreements Number of the ship-to party and the payer (an alternative ship-to party or payer can be defined for a particular item) Plant and storage location specifications Pricing elements for the individual items Schedule line data An item consists of one or more schedule lines. The schedule line contains all the data that is needed for a delivery. For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month so you need to schedule two deliveries. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. In sales documents where delivery data is not relevant, for example, contracts, credit and debit memo requests, the system does not create any schedule lines. Data recorded in the schedule lines includes the: Schedule line quantity Delivery date Confirmed quantity
25.
Structure and Data in a Sales Document
The user interface provides you with the following advantages for processing sales documents: Easy navigation between different processing screens Less switching between screens during processing Transparent display of data Complete display of processing screens even on smaller computer screens The interface with its flexible tables allows you to adjust the display to meet your requirements during processing. You can alter the width of the columns and their
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SAP Sales and Distribution Module (SD) sequence to suit your way of working by simply dragging the mouse. You can then save your different version of the display as a variant. An essential element of the interface is the tab page which looks like a box of index cards where you can easily find what you need. Each tab page has a title which is constantly visible. By simply clicking on the tab page title, you can bring the page in the box into the background, and process it if necessary. This tab page technique means that all the data that belongs together can be displayed together, even if the display area available is limited. The essential data in a sales document is contained on the following screens; each screen in the standard system has several tab pages: Overview screen Tab pages: Sales, Item overview, Item Detail, Ordering party, Procurement, Shipping, Reason for rejection Header screen Tab pages: Sales, Shipping, Billing, Payment cards, Accounting, Conditions, Account assignment, Partners, Texts, Purchase order data, Status, Additional data A and B Item screen Tab pages: Sales A and B, Shipping, Billing, Billing Plan, Country, Conditions, Account assignment, Schedule lines, Partners, Texts, Purchase order data, Status, Structure, Additional data A and B You can also use icons to help you to switch between these tab pages quickly and easily. Overview Screen
The overview screen provides the user with a choice of data for the document header. Under the display area, there is a table with the items for the document.
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SAP Sales and Distribution Module (SD) From this overview screen, you can switch between several tab pages. The Sales tab page contains important fields from the document header so it is particularly useful when you create the document for the first time. In Customizing, you can define which fields should be hidden. This gives you more space for the items. The Item overview screen displays a limited amount of header data - and again this provides more room for the items.
The Ordering party, Procurement, Shipping, and Reason for rejection tab pages display data for the relevant area. The Procurement tab page shows both the items and the schedule lines. Using the Configuration tab page, you can gain an overview of characteristic attributes for an item quickly and easily. This display possibility is particularly useful for materials with a relatively simple configuration, and for when you work with models, in which essential characteristics occur again and again. The Configuration tab page is only displayed in the sales document if you have maintained the characteristics display. If no entries are available in Customizing, the tab page is not displayed.
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Header Screen
The header screen contains several tab pages with data from the document header. Two tab pages for Additional Data A and Additional Data B and the latter can be designed to suit your needs. Item Screen
The item screen displays data on an individual item for the document. Even here, there are several tab pages to choose from. Similar to the header screen, the tab pages in the item screen make data from the previous three detail screens for sales, shipping and billing directly accessible.
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Additional Screens Schedule Lines
The overview, header and item screens do not contain all the data for a sales document. Instead, you can go to the Schedule line tab page from the Item screen to see a schedule line in the Schedule Line screen. (This can also be done by double-clicking on the magnifying glass under the schedule line table.) This screen contains detailed information for a single schedule line. Navigation You can switch between the Overview, Header and Item screens quickly by going to Goto in the menu bar. This enables you to switch to the required tab page with only a server access. Areas from which you can switch to a detailed screen by double-clicking, are optically highlighted. These areas are visualized via a changed cursor form on the relevant object (in the standard system, the cursor takes on the shape of a hand). By double-clicking, detailed information can be called up in sales document processing for the following objects:
Sold-to parties, Ship-to parties
By double-clicking on the sold-to party or ship-to party, you will reach the Partners tab page at header level.
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SAP Sales and Distribution Module (SD) Purchase order data, Purchase order number
By double-clicking on the purchase order date or purchase order number, you will reach the Purchase order data tab page at header level. Quick Input of Data with Subscreens In order to enter document data quickly and effectively, it is important that you can enter all important detailed data for sales order header and item at once, and that this is available at a glance. For this reason, the Sales and Item detail tab pages are enhanced. You can use these to reproduce detailed data for header and item. The entire amount of detailed data for header and item are available to you for the subscreens. In the standard system, these additional subscreens are filled with a choice of fields. Using transaction variants, you can fill these subscreens with further fields, or fade out fields you do not need. This means you can define how big the input area should be for the header data and which fields should be displayed individually. As from a certain number of fields on the subscreen, the system automatically maps a scroll bar for this screen area. You can assign individual order types to transaction variants.
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26.
Data From Master Records
When you create a sales document without referring to a preceding document, the system copies the following data from the master records: Data about the sold-to party and other partners (for example, ship-to party or payer) from the customer master records Item data from the material master record Data from any relevant customer-material information records The following graphic shows some of the data that is either transferred to the sales document or determined in the sales document.
Data From the Customer Master Record Among other things, the name of the sold-to party as well as agreements for complete deliveries and order combinations are copied from the customer master record into the document. You can change this data for each transaction. The document contains data that can be entered in the header and in the items. The header data here normally applies to the items as well. For example, payment terms, Incoterms3, partner functions, and the delivering plant are copied from the customer master records of the business partner into the document and the items. You can change the data in each item. Deviating Item and Header Data
INternational COmmercial TERMS - Codification of international rules for the interpretation of the most commonly used terms in international trade. They define the terms of sale and the passing of risks for import and export of merchandise. See SAP Help Glossary for list of 13 specified terms.
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SAP Sales and Distribution Module (SD) A sales document may include items where some of the business data differs from the business data in the header. You can review items where the data varies with the header data by selecting Edit -> Display criteria -> Own business data from the Overview screen. You reach an overview screen that contains only the items for which the data is defined. If you enter general business data for an item which deviates from the data in the document, subsequent changes to the data in the document header have no effect on this item. Example: The payment terms ZB01 are copied from the document header into the items. You change the payment terms for item 20 to ZB02. If you then change the terms of payment in the header later to ZB03, it will not affect item 20. If you also decided to change the Incoterms in the document header from FOB to EXW this will not affect item 20 either. Data From Different Business Partners Sometimes the customer master record specifies different partners for the various partner functions. For example, you may define several ship-to parties for a single sold-to party. In addition, you can define different partners for receiving and paying invoices. Each partner has its own customer master record and, during sales order processing, the system automatically copies data from the customer master record of the relevant partner into the sales order. For example, for each different ship-to party, the system copies the appropriate delivery and shipping data from the customer master record into the document. The following graphic shows an example in which the sold-to party, ship-to party, and payers are all different. The payment terms are copied from the customer master record of the payer, while the destination address is copied from the customer master record of the ship-to party.
Data From the Material Master Record
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SAP Sales and Distribution Module (SD) The system copies data from the material master record and copies it into the individual items. This includes data about weights, delivery priorities, as well as over- and underdelivery rules. You can change this data for each business transaction. How the System Determines the Delivering Plant You can enter the delivering plant in the customer master record and in the material master record. A value is proposed for the delivering plant according to the following criteria: If the delivering plant is defined in ... The material master only customer master only Then the system proposes the delivering plant from ... the material master the customer master (if the material has not been maintained for the plant in question) the customer master (if the material has not been maintained for the plant in question) the material master (if the material has not been maintained for delivering plant defined in the customer master)
The material and customer master records The material and customer master records
The delivering plant is proposed from the customer master record of the ship-to party. Keep this in mind in case the ship-to party is different from the sold-to party.
27. Data Determined by the System

Some data in the sales document consists of a combination of different factors, such as customer and material, and cannot therefore be copied directly from the customer or material master records to the document. Instead, the system has to determine the data separately for the different factors at different times. For example, when you configure your system for Sales and Distribution, you can save the data for different delivery routes separately from the master data, dependent on the location of the delivery plant and the ship-to party. As long as the necessary data has been saved, the system can then determine the delivery route automatically during sales order processing. The following data can also be defined in advance to be determined during processing: Prices, discounts and surcharges
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SAP Sales and Distribution Module (SD) Data for delivery scheduling Shipping point
28. Pricing and Conditions

The term pricing is used broadly to describe the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting). Conditions represent a set of circumstances that apply when a price is calculated. For example, a particular customer orders a certain quantity of a particular product on a certain day. The variable factors here - the customer, the product, the order quantity, the date determine the final price the customer gets. The information about each of these factors can be stored in the system as master data. This master data is stored in the form of condition records. The Condition Technique in Pricing The condition technique refers to the method by which the system determines prices from information stored in condition records. In Sales and Distribution, the various elements used in the condition technique are set up and controlled in Customizing. During sales order processing, the system uses the condition technique to determine a variety of important pricing information. For example, the system automatically determines which gross price the customer should be charged and which discounts and surcharges are relevant given the conditions that apply. Example of Pricing in the Sales Order The following figure shows how the condition technique works in the background to produce the pricing information. The diagram shows how the various elements in the condition technique work together.
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1. The system determines the pricing procedure according to information defined in the sales document type and the customer master record. 2. The pricing procedure defines the valid condition types and the sequence in which they appear in the sales order. In the example, the system takes the first condition type (PR00) in the pricing procedure and begins the search for a valid condition record. 3. Each condition type in the pricing procedure can have an access sequence assigned to it. In this case, the system uses access sequence PR00. The system checks the accesses until it finds a valid condition record. (Although you cannot see this in the diagram, each access specifies a particular condition table. The table provides the key with which the system searches for records). 4. In the example, the first access (searching for a customer-specific material price) is unsuccessful. The system moves on to the next access and finds a valid record. 5. The system determines the price according to information stored in the condition record. If a pricing scale exists, the system calculates the appropriate price. In the example, the sales order item is for 120 pieces of the material. Using the scale price that applies to quantities from 100 pieces and more, the system determines a price of USD 99 per piece. The system repeats this process for each condition type in the pricing procedure determines a final price.
29. Pricing Procedures

The primary job of a pricing procedure is to define a group of condition types in a particular sequence. The pricing procedure also determines: Which sub-totals appear during pricing To what extent pricing can be processed manually
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SAP Sales and Distribution Module (SD) Which method the system uses to calculate percentage discounts and surcharges Which requirements for a particular condition type must be fulfilled before the system takes the condition into account Example of a Pricing Procedure If a sales department processes sales orders for a variety of foreign customers, the department can group the customers by country or region. A pricing procedure can then be defined for each group of customers. Each procedure can include condition types that determine, for example, countryspecific taxes. In sales order processing, you can specify pricing procedures for specific customers and for sales document types. The system automatically determines which procedure to use. Pricing Procedures in the R/3 System The standard system contains pre-defined pricing procedures, which contain frequently used condition types along with their corresponding access sequences. You can, of course, modify these procedures or create your own from scratch.
30. About the Availability Check in Sales and Distribution Processing

When you enter a sales order, you can only confirm the delivery of the goods for the required delivery date if the goods are available for all the necessary processing activities which take place before delivery: The shipping department must ensure that freight forwarding or another shipping company is advised early enough so that sufficient time remains for packing and loading to be carried out. An availability check can be carried out on the deadline date for availability for the goods. The procurement department must ensure that the production and purchasing departments are advised of inadequate stock quantities so that goods can either be produced punctually or ordered. Sales transfers the information on materials ordered as requirements to material requirements planning (MRP). Requirements are planned outward movements of stock. The transfer of requirements informs production that goods must be produced, or advises purchasing that purchase requisitions have been created for which purchase orders must be created and sent to the suppliers. An availability check can only be carried out if these requirements are transferred.
31. Shipping
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SAP Sales and Distribution Module (SD) Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles. In shipping processing, all delivery procedure decisions can be made at the start of the process by Taking into account general business agreements with your customer Recording special material requests Defining shipping conditions in the sales order The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances. The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.
Range of Functions The shipping module supports the following functions, which include but are not limited to: Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance) Creating and processing outbound deliveries Planning and monitoring of worklists for shipping activities Monitoring material availability and processing outstanding orders Monitoring the warehouse's capacity situation Picking (with optional link to the Warehouse Management system) Packing deliveries Information support for transportation planning Support of foreign trade requirements Printing and transmitting shipping documents Processing goods issue Controlling using overviews of
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SAP Sales and Distribution Module (SD) Deliveries currently in process that still are to be carried out Possible bottlenecks
o o o
A list of deliveries posted as goods issue in the shipping department could be used to form a worklist for the billing department.
32. Creating Outbound Deliveries

As soon as the material availability date or the transportation scheduling date for a schedule line is reached, the schedule line becomes due for shipping. When you create an outbound delivery, you initiate shipping activities such as picking and transportation scheduling. A delivery is processed through one shipping point. Which shipping point carries out the processing for a delivery can be determined automatically during order processing or you can specify it manually in the order. The system carries out the following activities when an outbound delivery is created: Checks the order and materials to make sure the outbound delivery is possible (for example, it checks for delivery blocks or incompleteness) Determines the delivery quantity of an item and checks the availability of the material Calculates the weight and volume of the delivery Calculates work expenditure Packs the outbound delivery according to the reference order Checks the delivery situation of the order and any partial delivery agreements Redetermines the route Adds information relevant for export Checks delivery scheduling and changes deadlines (if necessary) Assigns a picking location Carries out batch determination (if material is to be handled in batches) Creates an inspection lot if the material must pass a quality check Updates sales order data and changes order status You can make changes in a delivery after it is created if the delivery situation changes in any way. In addition, you can confirm picked quantities using the change function, or use the display function to access shipping information in a delivery. Order items or schedule lines that have identical shipping criteria are combined in one delivery. If data varies between items, for example, if a different ship-to party is defined for each item, two deliveries must be created for the order. Order items from different orders can be grouped together in one delivery provided that they have identical shipping criteria and that the sold-to party agrees.
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33. Updating Delivery Status in Sales Orders

The order is updated when the delivery is created. The delivery status is updated at header and item level. This is illustrated in the following figure.
Delivery Status in the Order You will find the delivery status of the individual items and of the entire order on the status screen at item and at header level respectively. The delivery status of the entire order results from the delivery status of the items. Until all items in the order have been fully delivered, the order has the status "Partially delivered". The entire document acquires the status of fully delivered once all the items have been fully delivered. If you enter a delivery for the sales order, you must always specify the shipping point from which the sales order is to be delivered. The shipping point cannot be changed in the delivery.
34. Picking
The picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods will be prepared for shipping. Regardless of how your company executes the picking process, you can make settings in the system so that picking is carried out Automatically during Outbound Delivery Creation Routinely at certain times
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SAP Sales and Distribution Module (SD) Manually according to overviews of the day's workload that an employee has requested
A Picking Status is recorded in each delivery item for the purpose of scheduling and monitoring the picking process. This status indicates where the item is in the picking procedure (picking has started for item A, for instance).
In the system standard settings, it is a prerequisite for goods issue to be posted before the item relevant for picking can be picked completely. Therefore, delivery quantity and picking quantity (picked quantity) in the outbound delivery must be equal. The Warehouse Management System (WMS) module is fully integrated in Logistics Execution (LE). For example, you can create a WM transfer order directly from the outbound delivery. The current status of the warehouse management process can also be monitored from the delivery, for instance. You can transfer all data relevant for picking and verification of picking data to a subsystem by using the Delivery Interface. By using message control, data can be transferred to a subsystem that is being used for picking (see also: Delivery Interface).
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SAP Sales and Distribution Module (SD) Depending on the picking procedure being used, you can either determine deliveryrelevant data before picking or wait until after picking is completed to record it. Deliveryrelevant data may be made up of the following: Which batches a material is picked from Which serial numbers are picked Which valuation types the stock is taken from
35. Packing
Packing is part of delivery- and shipment processing. When you process a delivery, you can select delivery items for packing and assign them to handling units (HUs). Range of Functions As an example, you could pack delivery items in boxes, pack the boxes on pallets for delivery to the customer, and load the pallets onto a truck. The Packing component and related packing information enables you to: Update the stock situation of packing materials Monitor returnable packaging stocks at the customer's or forwarding agent's place of business Help you find you what was in a particular container (for example, if a customer maintains that they have received an incomplete delivery) Make sure that the weight and volume limits have been adhered to Ensure that products have been packed correctly
36. Goods Issue

As soon as the goods leave the company, the shipping business activity is finished. This is illustrated using goods issue for outbound deliveries. You have the following options for posting goods issue: Goods Issue Posting for individual outbound deliveries Goods Issue in Collective Processing to post goods issue for multiple outbound deliveries Goods Issue in Collective Processing for posting goods issue for multiple outbound deliveries in the background without manual intervention Posting Goods Issue for an Entire Shipment Range of Functions The outbound delivery forms the basis of goods issue posting. The data required for goods issue posting is copied from the outbound delivery into the goods issue document, which cannot be changed manually. Any changes must be made in the outbound delivery itself. In this way, you can be sure that the goods issue document is an accurate reflection of the outbound delivery.
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SAP Sales and Distribution Module (SD) When you post goods issue for an outbound delivery, the following functions are carried out on the basis of the goods issue document: Warehouse stock of the material is reduced by the delivery quantity Value changes are posted to the balance sheet account in inventory accounting Requirements are reduced by the delivery quantity The serial number status is updated Goods issue posting is automatically recorded in the document flow Stock determination is executed for the vendor's consignment stock A worklist for the proof of delivery is generated A worklist for the proof of delivery is generated After goods issue is posted for an outbound delivery, the scope for changing the delivery document becomes very limited. This prevents there being any discrepancies between the goods issue document and the outbound delivery.
37. Goods Issue Posting

When processing individual outbound deliveries, you can also post goods issue for them directly. In order to post goods issue, all necessary shipping activities must be completed. These activities include:
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SAP Sales and Distribution Module (SD) Entering all necessary data in the outbound delivery. For example, the storage location, batch, or valuation type must be specified in the delivery. Picking of all individual outbound delivery items must be complete for all items for which you have set the Relevant for picking indicator in the Implementation Guide (Logistics Execution Shipping Picking section, Define relevant item categories activity). You can post goods issue for picked quantities only. All transfer orders must be confirmed for individual outbound delivery items if those items were picked using the Warehouse Management System (WMS) or Lean WM and if you have indicated them as having a confirmation requirement. Result As soon as the delivery is saved and goods issue is posted, you receive a message that contains the delivery number. The goods issue document number is not shown.
38. Results of a Goods Issue Posting

A goods issue has the following results in the system: material document is created accounting document is created a goods receipt/issue slip is created stock is updated G/L accounts are updated consumption is updated reservation is updated order is updated other applications are updated a transfer requirement is created when the Warehouse Management System (LE WM) is connected an inspection lot is created when QM is connected Creation of a Material Document When you post a goods issue, the system automatically creates a material document which serves as proof of the goods movement. Creation of an Accounting Document Parallel to the material document, an accounting document is created. The accounting document contains the posting lines (for the corresponding accounts) that are necessary for the movement. Creation of a Goods Receipt/Issue Slip
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SAP Sales and Distribution Module (SD) When you enter the goods issue, you can print the goods issue slip at the same time. Stock Update The following stocks are reduced by the issued quantity: total valuated stock unrestricted-use stock reserved stock if the goods issue is entered with reference to a reservation or an order. From the point of view of Materials Planning, available stock remains unchanged when posting a planned goods issue because the quantity withdrawn was reserved and therefore no longer available anyway. When posting a goods issue without reference to a reservation or an order, available stock is reduced accordingly from the point of view of Materials Planning. The stocks are updated both at plant level and at storage location level. Update of G/L Accounts When the goods issue is posted, the system automatically creates posting lines on the accounts of the accounting system. Consumption Update In addition to causing an inventory update in the material master record, a goods issue posting causes an update of the consumption statistics if the material is planned with MRP. You can see the consumption statistics when you display plant stock availability or the material master record. MRP uses the consumption statistics of a material for creating forecasts. In doing so, MRP distinguishes between planned and unplanned withdrawals. If the withdrawal is planned, total consumption is updated. If the withdrawal is unplanned, both total consumption and unplanned consumption are updated. Reservation Update With a goods issue that references a reservation or a sales order, the quantity withdrawn is updated in the reservation item. The reservation item is completed when the total reservation quantity has been withdrawn or when the final issue indicator is set manually at goods issue. Order Update In the case of a goods issue with reference to an order, the quantities withdrawn for the components are updated in the order. Update in Other Applications
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SAP Sales and Distribution Module (SD) Updates can also occur in other related applications. For example, In the case of a goods issue for internal consumption the point of consumption (such as cost center, order, asset) is debited. Creation of a Transfer Requirement when the Warehouse Management System (LE WM) Is Connected If the storage location is managed with the Warehouse Management system (LE-WM), the goods issue posting creates a quant at the goods issue interim storage area, as well as a transfer requirement, which starts an action in the Warehouse Management system. Creation of an Inspection Lot when QM is Connected If inspection processing is active in the Quality Management system (QM), an inspection lot is created at the time of goods issue. The Quality Management system uses this inspection lot to carry out the inspection.
39. Billing
Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on billing is available at every stage of order processing and delivery processing. This component includes the following functions: Creation of: o Invoices based on deliveries or services o Issue credit and debit memos o Pro forma invoices Cancel billing transactions Comprehensive pricing functions Issue rebates Transfer billing data to Financial Accounting (FI)
40. Billing Processing

During billing processing, you create, change and delete billing documents (invoices, credit memos, debit memos, etc.). Features You can create billing documents: with reference to a sales order with reference to a delivery with reference to external transactions: You can refer to an entire document, individual items or partial quantities of items.
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SAP Sales and Distribution Module (SD) You can create billing documents in the following ways: by having the system process a billing due list automatically as a background task by processing manually from a worklist by creating a billing document explicitly You can also use the following forms of settlement: by combining several SD documents into a collective billing document by billing one or more SD documents with several billing documents (this is called an invoice split). by creating an individual billing document for every sales document
41. Billing Methods

During billing, you can decide whether you want to create an invoice for every delivery, or whether you want to send the customer an invoice every month, for example. The following methods may be used in Billing: One individual billing document per sales document A collective billing document for several sales documents Several billing documents for one or more sales documents ( invoice split)
42. Individual Billing Documents

You can set the system to create one billing document for each sales document, e.g. one invoice per delivery.
Copying control is carried out in SD Customizing via Billing Billing documents Maintain copying control for billing documents, Navigation Item, field: VBRK/VBRP. In this field, you select data transfer routine 3. Regardless of whether several deliveries originate from one or more orders, the system can create an individual invoice for each delivery.
43. Collective Billing Documents

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SAP Sales and Distribution Module (SD) As long as certain data agrees, you can also combine different documents (orders and/or deliveries) fully or partially in a common billing document:
Prerequisites The following prerequisites must be met: the header data appearing in the billing document must agree the split conditions specified do not apply Features The system behaves differently for the functions Billing due list and Create billing document Process billing due list The system combines documents with the same customer number, proposal billing type and sales organization, and attempts to include them all in the same billing document. If the preconditions are met, then a single invoice is created for the deliveries and/or orders. Create billing document When creating several billing documents, user exits can be used to reset the header data, so that more can be combined than in the billing due list. Integration with Accounting Integration with Accounting consists of forwarding billing data to Financial Accounting (FI - Accounts Receivable) Controlling (CO) When you create a billing document, the system automatically creates all relevant accounting documents for: o General Ledger o Profit center o Profitability Analysis
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SAP Sales and Distribution Module (SD) Cost Accounting Accounting Integration with Financial Accounting consists of forwarding billing data in invoices, credit and debit memos to Financial Accounting. The system posts offsetting entries to the appropriate accounts (with the help of "account assignment") and makes sure that FI can recognize all billing documents belonging to one business transaction (for example, a credit memo to an invoice)
o o
Integration with Controlling consists of assigning costs and revenues to the appropriate sub-ledgers.
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