1 Edit, Copy, Delete, Check Company Code(T001)
2 Define Credit Control Area(T014)
3. Maintaining Sales Organization(TVKO)
4. Assigning Sales Organization to Company Code(TVKO~BUKRS)
5. Maintaining Distribution Channel(TVTW)
6. Assigning Distribution Channel to Sales Organization(TVKOV)
7. Maintaining Division(TSPA)
8. Assigning Division to Sales Organization(TVKOS)
9. Setting up Sales Area(TVTA)
10 Maintain sales office(TVBUR)
11 Assign sales office to sales area(TVKBZ)
12 Maintain sales Group(TVKGR)
13 Assign sales group to sales office(TVBVK)
14. Define Shipping Points(TVST)
15 Define, copy, delete, check plant(T001W)
16 Assigning Shipping Point to Plant(TVSWZ)
17. Assigning Sales Organization- Distribution Channel- Plant(TVKWZ)
Note: Ensure to do the undermentioned configuration also though it is not in Customizing node of Enterprise Structure.
18. Defining Common Distribution Channels for Master Data(TVKOV-VKWKO TVKOV~VTWKU)
19. Defining Common Divisions for Master Data(TVKOS-SPAKO TVKOS~SPAKU)
In SD, the steps to configure Pricing procedure are as under:
Step 1: Sales Document Type
Sales Document Item:
The configuration differs from scenario to scenario & requirement of the client.
A document type represents a type of transaction in the system. For example, a Contract Transaction is represented in the system using a document type CT. Similarly a quotation to a customer is created in the system using a document type QT. The reason why different document types are used to represent different transactions is because, each transaction behaves in a different way from another. A quotation behaves differently from a Standard Order. Some examples are shown below.
Quotation ( QT )
Standard Order ( OR )
The document type QT controls the characteristics of the quotation document type. Also, if there are slight modifications required, a copy of QT can be made – like ZQT – and used. For example, when creating a quotation in a particular company, if credit checks needs to be performed that particular feature can be enabled.
The transaction code to configure a document type is [VOV8] or use the menu path [SPRO -> Sales and Distribution -> Sales Documents -> Sales Document Header -> Define Sales Document Types ]
When creating new entries, as usual always try to choose an entry close to your required document type and copy it. For example, if you want to create a quotation with different characteristics, its always better to create the new document type as a copy of QT. That way all the item category determination, schedule like determination etc are already done for you – unless you create new item categories.
Let’s go through some of the controls inside a document type say OR ( which is the document type for a standard order ) . Not all controls are relevant , but we will try to cover the most important ones. Select the document type OR and click on the magnifying glass or double click on OR to learn more.
The controls are segregated into multiple sections.
As you can see, not all these sections are relevant for all types of documents. For example, the Scheduling Agreement or the Contract Sections are not relevant for OR document type.
Before going into the controls in the different sections, there are some basic controls
The sales document category signifies at a broad level which type of sales document this document type belongs to. These are hard coded and cannot be changed. The only document categories possible are
Now if you need to create a new document type that resembles a Returns document, you would have to select the document category as H – which stands for Returns. Because, the way a standard order behaves from a return is very different. And the document category controls how it behaves.
Also a sales document can be blocked. An example is a scenario where a new promotion document type has been created in 2000 and the business process has changed since 2005 that requires the company to not use promotions any more. In order to force the order entry personnel not to use that document type, the sales document can be blocked as shown in the picture below.
Now, let’s explore the sections
The Number Range Internal Assignment is used to mention the number range that is to be used when creating a sales document of this type. Transaction code [VN01] is used to define those number ranges. Each of the documents created in the system need to have a unique number. This is defined using the number ranges. Read more about Number Ranges here.
For example, the number range 01 in this case starts from 0000000001 to 0000199999. And the current number is 12919
So, when the next document of type OR is created, the number would start with 12920.
Similarly, if external number ranges are used, the number ranges assigned to 02 would be used.
Item Number Increment
This is the auto increment that is to be used when creating line items in the sales order. When a sales order of type OR is created the line items that are automatically generated would start with 10 and go in increments of 10 there after.
If new items need to be entered in between ( Say for example, between 10 and 20 ), then that item will have to start with atleast 10 + 1 = 11.
Sales documents can be created with reference to other sales documents or other billing documents. Read more about this in Document Flow. This field signifies if a reference is mandatory. For example a release order can only be created with reference to a contract. Similarly if your business dictates that a sales order cannot be created without reference to a quotation, you can configure it here. The possible values are
When creating a sales order you can enter the sales organization, distribution channel and division. However, it is possible that you enter materials belonging to different divisions in the sales order. You can configure the system to either allow or disallow materials from different divisions be entered in the sales order.
Allows materials of a different division at the line item level compared to the header level division
This option will force the system to respond with either an error or a warning when a different division is entered.
This field is rarely used and if used is used mostly in inquiries and quotations which are not actual sales.
Credit Limit Check
There are different types of credit management that can be used in SAP SD. Read more about SAP Credit Management here. This field signifies what kind of credit check need to be used for this kind of sales document.
This field is almost always set to 01 for all sales documents. Read more about SAP Credit Management to learn more about Credit Group.
For standard sales document types, this is set to V1. Shipping documents have this field as V2, billing documents as V3 etc.
Read Info record
Check Purchase Order Number
When the incoming Customer PO contains a duplicate PO number or if the order entry personnel is creating a duplicate sales order ( with the same PO number ), this field can be used to force a check for a pre-existing Purchase Order Number for that customer. There are only 2 options in this field. A blank means no check. ‘A’ implies to do a duplicate check on existing PO numbers. Let’s set it to ‘A’ for order type OR and see the difference.
Enter PO Number
This check box is used to copy the Sales Order Number into the PO Number field. This could be used when there is no Actual PO # from the customer but a number needs to be entered in the PO Number field. To test this, just create a sales order and without entering a PO Number save the sales order. Reopen the sales order and you will find the PO Number field will be filled with the Sales Order Number automatically.
Document Pricing Procedure
This field along with the customer pricing procedure determines the Pricing Procedure. Read more on Pricing in SAP here.
Sales Documents have different statuses at the header level and item level. There are a set of pre-defined Statuses that SAP uses. Also, you can define custom defined Statuses and define sequences in which they go. Read more about Status Profile here.
Alternate Sales Document Type
During order creation, you can change the document type on the fly. This again is a rarely used feature and is tricky to use as well because of the constraints imposed on this feature. When creating a sales transaction, we mention the document type upfront and SAP takes us to the right screen. However, inside the sales order screen it is possible to change the sales order type by just clicking on the radio button.
You can select the order type ( highlighted in orange above ) and if the constraints are fulfilled, the order type can be changed. The configuration for the same is to have ZOR and ZTA as the alternative document types in the
This field allows the user to save the order irrespective of the messages in the incompletion log. Use this feature when you want to force the user to not save the order without completing all the necessary items as specified in the incompletion log of the sales document header and item. Read more about Incompletion log here.
When creating sales orders, if there are outstanding quotations for the customer for this material, you can configure the system to react differently based on the different options that are configured. The possible options are self-explanatory.
A / B Check at Header / Item level
C / D Check at header / item level and copy if unique. This option is useful, if there is only 1 matching quotation that you just want to be copied into the sales order.
E / F Check at Header / Item Level and branch directly to selection list. This option is useful if there are multiple quotations and you want the list of multiple quotations to be shown to the user creating the order.
As an example, let’s set this field to E ( which checks for matches at the header level ) and try to create 2 quotations 20000036 and 20000037 for the customer 1400.
Now if we create a sales order for the same customer 1400, irrespective of the line items, the list of open quotations are displayed.
however, if the option was set to F, this message would not have been shown until the line items entered in the sales order matched the line items in the open quotations.
This section controls the delivery parameters.
This field contains the delivery document type that is used when a delivery is created for the sales order. The standard delivery LF is used when creating a delivery document for the sales document of type OR.
Consider the case of a rush order ( As soon as the order is created, the delivery needs to be created ). Again, there are 2 cases here. Creation of the immediate delivery if stock is available and confirmed and creation of the delivery irrespective of the stock situation. Rush order follows the first example. As you can see in the screenshot below, as soon as the rush order is created and saved, the delivery is automatically created ( Subject to availability )
For eg. if the customer asks for a certain combinationa of Material A, B and C respectively,
then you create a Material Master record Material D with item category group as LUMF.
While the Materials A, B and C are created with standared item category groups NORM only.
Then create a sales BOM using Tcode CS01 and enter the following details:
Material : Material D
Plant : Plant in which you created the material.
BOM Usage : 5 (Sales and Distribution)
then give the Materials A, B, and C and give their respective quantities.
Before you have to create pricing condition records for Materials A, B, and C.
Then configure the item categories ( T - code : VOV4).
When processing the sales order, just give the Material D and the system will pick up the corresponding assemblies for that material and populate in the order.
The item category for the header item will be TAP
and the item cateory for the items will be TAN,
In this cas the Material D is called as the higher level Item , and all the assemblies are called as the subitems.
Here the subitems are relevant for pricing and delivery where as the header item is not relevant for neither pricing nor delivery. It just acts as a text item.
This type of configaration of BOM is known as pricing at item level. This is used when you dont know what quantities of assemblies the customer is going to order and if the price of the assembly keeps varies.
There is another way of configaring BOM which is pricing at header level.
The difference is that the Material Master D has to be confugured using the item category group ERLA.
Creation of BOM is same.
But you need to maitain the pricing condition record for the header item.
The item categories in this case would be
Header item : TAQ
Sub item TAE;
Where the header item is relevant for pricing and delivery. and subitems are not relevant for neither the pricing nor the delivery.
Sales and Distribution
Area Table Description
Catalog QPCD Inspection catalog codes
Sample Determination QDEB Allwd. Relationships: Sampling Procedures/Dynamic Mod. Rules
Inspection Char TQ17A Weighting of Char
Dynamic Modification QDBM Valuation mode
Graphics & SPC QASH Quality control chart
Specifications QMSP QM: material specification
Inspection Plan PLKO Inspection plan Header
Qm in procurement QINF QM-info record for material and vendor
QM in SD QVDM QM Info Record - QM Control in SD
Inspectio lot QALS Inspection lot record
Inspection point QAPP Inspection point
Results Recording QAES Sample unit table
Defects recording TQ84 Confirmation profile
Usage decision QAMB QM: Link Between Inspection Lot and Material Document
Sample Mgmt QPRN Sample drawing of phys. samples
QMIS S068 Vendor statistics
Quality Certificates QCPR QM quality certificates in procurement
Quality Notification QMEL Notification header
Other Objects MARA Material Number
1) Settlement of advance will be done by the Accounts Department based on the Travel Expense Statement submitted by the employee, which is approved by the Concerned Department Head.
2) Expenses Account DR
3) Banking Operations - Maintenance Of Bank Master
4) A House Bank is a combination of a Bank and a Branch. Account id is the account number. A house bank can have multiple account IDs.. There could be a main account as also payable account, which will be defined as separate account ids. General Ledger accounts have to be created for each combination of a house bank and account ID. The bank master details are to be provided by HZL.
5) General Ledger accounts have to be created for each account ID in the house bank. Bank Account Master data will be maintained by the Finance Department centrally.
6) Each house bank and account ID combination shall have one main general ledger account and several sub accounts mainly based on broad transaction types. These sub accounts are necessary to facilitate automatic bank reconciliation process in R/3 system.
Bank cheque deposit account Debit
8) In this case, a bank sub account is selected based on the transaction code entered by the user. The customer account is cleared i.e. invoice is cleared against the receipt. In respect of any other deposits, the relevant accounts to be credited will depend on the nature of transaction.
9) Payment against bills for collection. Based on the bank advices falling due on a particular day one payment advice is made debiting the vendors and crediting bank.
Cheque Deposit - Customer Receipts
Bank Sub account Dr
Cheque Deposit - Other Than Customer Receipts
Cheque Bouncing – Other Than Customer Receipts
12) Based on the information of cheque bounced from the Bank, the accounts Department will pass accounting entries for the cheque that have been bounced. The procedure to handle bouncing of a cheque has been discussed under the following
13) Reset the clearing document – If the document has been cleared i.e. an open outstanding item has been cleared against an incoming receipt, then the clearing document has to be reset to its original status of open item. This process is known as reset of cleared document.
14) Reverse the entry passed for cheque deposited earlier – Once the document has been reset it will be reversed. The following accounting entry will be passed.
15) In case of cheques being damaged while printing, the concerned cheques no. has to be voided and the payment will be rerun.
17) Bank Main account balance is the actual balance as per the bank statement whereas the Bank sub accounts denote the reconciliation items. These sub accounts show those entries, which will flow from the sub account which are not cleared in the bank statement.
18) Adding or subtracting the Bank sub accounts will help in preparing the Bank reconciliation statement.
19) The following scenarios would explain the reconciliation process:
Cheque Received From Customer
21) Accounting entry after cheque has been cleared in the Bank statement Main Bank account
22) The clearing criteria for updating the bank main account and bank sub account will be amount and document number which will be captured in the allocation field of the bank sub account. The items, which have not been cleared in the bank statement, will remain open in the bank sub account and will form part of the bank reconciliation statement.
Cheque Issued To Vendors
24) Accounting entry after cheque has been presented in the Bank
25) The clearing criteria used for updating vendor account and Bank cheque payment account will be amount and cheque number. The cheques presented to the bank and are cleared are transferred to the bank main account. The remaining cheque issued will form part of the bank reconciliation statement.
Direct Debit In Bank
Direct Credit In Bank
Bank Fixed Deposits
Cheque Management / Cheque Printing Cum Advice
30) Cheque series for automatic payment has to be in sequential order. Cheque printing facility will be available for the bank account.
Cash Management / Liquidity Analysis
32) The main objective is to ensure liquidity for all due payment obligations. It is also important to control and monitor effectively the incoming and outgoing cash flows.
33) This section shows you the overall liquidity status of your company by displaying together the cash position and the liquidity forecast. The cash position is used in Cash Management to show the value-date-dependent bank accounts and bank clearing accounts, as well as the planned cash flows (payment advice notes). The liquidity forecast comprises the incoming and outgoing cash flows, as well as the planned items on the sub-ledger accounts.