SAP - SALES AND DISTRIBUTION COURSE1 TABLE OF CONTENTS CREATING SALES RELEVANT ORGN UNITS STEP 1: Creating Sales Organization STEP 2 : Creating Distribution Channel STEP 3: Creating Division STEP 4: Creating Sales Offices STEP 5: Creating Sales Group ASSIGNING ORGN UNITS STEP 6: Assigning Sales Organization with Company code STEP 7: Assigning Distribution Channel to Sales Orgn STEP 8: Assigning Division to Sales Orgn STEP 9: Creating a Sales Area STEP 10: Assigning Sales Office and Sales Group CREATING MASTER DATA Introduction to Master data STEP 10: Preparing the system for Master Data Creation - Creating Common Distribution Channel - Creating Common Division Customer Master Data - Introduction STEP 11: Creating Customer Master Material Master Data - Introduction STEP 12: Creating Material Master STEP 13: Posting Stocks for Material STEP 14: Stock Overview Condition Master Data - Introduction STEP 15: Creating Condition Master SALES ORDER CREATION Definition and Prerequisites STEP 16: Preparing the system Combining Organization Units STEP 17: Assigning Sales Document to Sales Area STEP 18: Sales Order Creation UNDERSTANDING THE SALES ORDER STEP 19: Viewing Header Details STEP 20: Viewing Item Details STEP 21: Viewing Schedule Lines 2 ORGANISATION SETUP SALES ORGANIZATION Sales Organization the Sales Organization is central organizational element that controls the terms of sale to the customer.Defining the Sales Organisation is the foremost step in customizing SD module in SAP. STEP 1: CREATING SALES ORGANIZATION Best advised business practice is to copy an existing sales orgn and create own sales orgn Menu Path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Define,Copy Delete, Check Sales Organisation On Choose Activity screen, select Copy, Delete, Check Sales Organisation – Double Click on it. Click on the Copy Icon On the following screen please provide the From(Source) and To(Target) company code. { In practice please select sales orgn 3000 as source and give a target sales orgn as your own} 3 Source Sales Orgn Target Sales Orgn(self defined) Press enter or confirmation. icon till the Sales organization gets created. Upon creating system issues a 4 STEP 2: CREATING DISTRIBUTION CHANNEL Menu path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Define. Check Distribution Channel Click on Define Distribution Channel – New Entries Create your own Distribution channel and save it by ‘Enter’ or & ‘Save’ 5 .Copy Delete. General → Define. Copy Delete. 6 .STEP 3 : CREATING DIVISION Menu Path : SAP IMG → Enterprise Structure → Definition → Logistics . Check Division – Double Click Create own Division by providing Division and name. Save the inputs. Menu path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Maintain Sales Office Save your entries. When you enter a new window for Address entry will pop up pls provide address info and then save the entries. If you enter a sales order for a sales office within a particular sales area. Sales offices are assigned to sales areas. A sales office can be assigned to more than one sales area. A sales office can be viewed as an actual office or perhaps a territory or region. the sale s office must be permitted for that sales area.STEP 4: CREATING SALES OFFICE • Sales office: Geographical aspects of the organizational structures in business development and sales are defined using sales offices. 7 . 8 . Sales groups are assigned to sales offices. Menu path: SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Maintain Sales Group Save entries.STEP 5: CREATING SALES GROUP: Sales group: Employees of a sales office can be assigned to sales groups defined for each division or distribution channel. STEP 7: ASSIGNING DISTRIBUTION CHANNEL TO SALES ORGN Menu path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Distribution Channel to Sales Organization – New entries Creates assignment between your Distribution Chennel & Sales Organisation and save. 9 .ASSIGNMENT OF ORGANISATION UNITS STEP 6: ASSIGNING SALES ORGANISATION TO COMPANY CODE A sales organization is assigned to exactly one company code. Menu path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Sales Organization to Company code Assign the created Sales Organization to the Company Code. and billing documents are always assigned to a sales area.STEP 8: ASSIGNING DIVISION TO SALES ORGANISATION Menu path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign = Division to Sales Organization – New Entries STEP 9: CREATING SALES AREA: A sales area is a combination of sales organization. Distribution Channel & Division By selecting new entries. distribution channel and division. Create assignment between your Sales organization. delivery documents. Every sales process always takes in a specific sales area. Sales documents. 10 . Creating Sales Area: Menu Path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Setup Sales area Click on . Sales Groups are assigned to Sales Offices: Menu Path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign sales group to sales office → New Entries Enter created Sales office and sales group info and assign it by saving your entries. 11 . STEP 10: ASSIGNING SALES OFFICE AND SALES GROUP: Sales Offices are assigned to Sales Area Menu Path: IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign sales office to sales area → New Entries Enter Sales Area {Sales Organization. If not. distribution Channel & Division} & your Sales Office info and save entries.If the entry already exists the system will throw a message. please save your assignment. By this definition the master data shared by several distribution channels applies to conditions and customer and material master data. Provide your own distribution channel in both places. Similarly Define Common Divisions: Menu path: IMG → Sales and Distribution → Master Data → Define Common Division Create common Divisions assignment and save entries. 12 . Menu path: IMG → Sales and Distribution → Master Data → Define Common Distribution Channel Ensure to provide the Common Distribution channel.CREATING MASTER DATA STEP 10: PREPARING THE SYSTEM It is essential to define common distribution channel and common division this step is done to avoid redundancy of master data creation. For eg. and Company code data. in order to avoid data redundancy. division). distribution channel. Creating Customer master: Menu Path: SAP Easy Access → SAP Menu → Logistics → Sales and Distribution → Business partner → Customer → Create → Complete T Code → XD01 13 . It is valid for the respective company code. The company code data is relevant for accounting. The sales area data is relevant for sales and distribution. The general data is relevant for sales and distribution and for accounting. It is stored centrally (client specific).INTRODUCTION TO CUSTOMER MASTER The customer master groups data into 3 different categories: General data. It is valid for all organizational units within a client. Sales area data. It is valid for the respective sales area (sales organization. Click enter or Then click on . . It controls Number ranges and Fields that appears while creation of customer. Vendor and Customer master. (Creation Account group will be discussed in detail later) Select standard account group ‘Sold-to party R/3 → CRM ’ Enter your company code for eg ZZ01 Enter the defined Sales area Eg Sales Orgn – ZZ01 Distributin Channel – Z6 & Divinsin Z7 Click Enter the general data specific to your customer. 14 . The data stored will be specific to a Company Code. This data will be created at Client level. Data will be shared by all company code under that client.Account Group: An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account. After entering relevant details in every tab click Click code. .Sales area data is specific for a sales area created under the company 15 . Also Click on tab ‘Payment Transactions’ and enter relevant details.Enter Reconciliation account (Standard 142000). . Please enter a input in this field.SALES AREA DATA Customer Pricing Procedure (CuPP): This is a key element for Pricing. Shipping Conditions & Delivering plant are the fields which will be referenced at various levels of sales order processing. Click on tab ‘Shipping’ Enter data relevant for shipping. 16 . Delivery Priority. Please ensure input for these fields. Save your entries. Sales Tab: Enter your Sales Office. Click tab ‘Billing Documents’ Enter billing relevant details for the customer. The created customer no will be displayed at the bottom of the screen 17 . Terms of payment and Tax condition are the necessary data. Enter Tax condition as ‘0’. Partner functions Tab : Creates all necessary partners associated with this customer. Incoterms. Enter and save the customer . 18 . sorted by various different criteria.MATERIAL MASTER INTRODUCTION TO MATERIAL MASTER • All the information to manage a material is stored in a data record in the material master. • Different departments in a company. but uses different information on the material. work with the same material. Basic Data 1 .STEP 12: CREATING MATERIAL MASTER Menu Path: SAP Easy Access → SAP Menu → Logistics → Sales and Distribution → Master Data → Material → Other material → Create TCode: MM01 Click enter or press A view screen will pop up on this screen we need to select the tabs that are necessary for creation of a material. Data 2. Sales: Sales Org. Please Note to create a standard material the following tabs are to be selected. Sales General/Plant Data. Classification. General Plant Data / Storage 1. MRP 1. Accounting 1 & Accounting 2. Select the views by clicking on it and after selection Click enter. Sales Sales Org. 19 . Data 1. Basic Data 2. General Plant Data / Storage 2. Sales Organisation & Distribution Channel. Storage Location.Click enter or press A Material is created under Organisation levels Plant. Sales Organization & Distribution Channel and enter. Provide input for Plant. 20 . Storage location. A list of tab pages can be looked upon by clicking this icon Entering basic data for Material creation: 21 .Understanding material creation screen: Different TAB pages of Material master creation can be seen by clicking onto this next tab icon. Goto Tab Sales : Sales Org1 This tab ensures that all sales relevant informations for a material are stored.. Tax classification of material defines if the material is Taxable or not. Gross weight and Net weight of the material.Basic Data1: Enter Material Description.It is important to enter if the material is taxable. 22 . Base Unit of Measure. Please use ‘0’ – No tax for standard creation of material. (This will be discussed in detail at later stages) On the MRP1 tab: MRP tab entries will be used to determine the method system uses to work on materials requirement planning Enter value ‘ND’ – No planning in MRP Type field. Transporation group & Loading Group. Goto Sales: General/Plant Important fields are: Availability check. Item category group is an important field to determine respective Item category for a sales order. Transportation group is a key element in determining the Route & Loading Groups for determination of Shipping point at Sales order processing stage.Click on Sales Org 2 Tab:Ensure that the entries for Item category gropu exists at this page. 23 . The Warehouse management and Quality management tabs stores data that are needs for these departments of a business. A standard material can be created without entering this information.Click on Tab ‘ Plant data / stor.Base Unit of Measure field will get automatically filled up as we already have provided the input. and save . Standard price defined under a material helps for valuation of stocks. Shelf life data under this tab helps to work to manage perishable products and exclusive settings can be made for materials. Click tab Accounting 1: Provide inputs for fields Valuation class(standard entry is 7920) & Standard price(any price).1’ Inorder to create standard material no entry is necessary at this tab. Valuation class is an entry with which the inventory posting for a material at stock level are controlled. A confirmation message will 24 . After entering all necessary information click appear on the bottom. Click on Tab Plant data/stor2: No data is necessary ‘to be entered’ at this tab. Step1 : T Code: MB1C Required Data input for posting of stocks are Movement type (Standard – 501). Without having stocks a sales order cannot be processed. Remember: Posting of stocks is an exercise made by MM consultants. 25 . Confirmation of posting will appear on the bottom of the screen. Plant & Storage location Enter Provide Material No and desired quantity on the respective fields. Enter and Save .STEP 13: POSTING STOCKS FOR CREATED MATERIAL It is important to have stocks for the created material in order to proceed with Sales order processing. This step explains the posting of stock without purchase order. Plant and Storage Location data & Execute .STEP 14: STOCK OVERVIEW One can view the total stock of a particular material by viewing the ‘Stock Overview Screen’ T Code: MMBE Enter the Material No. 26 . Look into the values under Column ‘Unrestricted Use’. This confirms that the stocks are posted and are available for further processing. Pricing. Surcharge. Freight & Taxes are examples of a Condition master. 27 . For example. For eg. PRICING FOR MATERIAL: Pricing involves condition technique. We can define condition master data (condition records) to be dependent on various data. This part of the course explains the basic steps involved to create a condition record (Condition master) so to proceed with creation of sales order. PR00 – Price Enter on the Key combination screen pop up please select Material as we are creating a record against a material. maintain a material price customer-specifically or define a discount to be dependent on the customer and the material pricing group. Eg. Condition records are stored against a specific condition type. Condition Master has data related to a condition for a specific customer or a Material. (This will be explained in detail in later chapter). STEP 15: CREATING CONDITION MASTER Menu Path: Logistics → Sales and Distribution → Master Data → Conditions → Select using condition type → Create T Code VK11 Condition Type against which a record created has to be entered in this field.CONDITION MASTER Another important Master data for Sales order processing is the Condition Master. STEP 16: PREPARATION OF SYSTEM Preparation settings for Sales order: . Pricing condition records.Enter Sales Orgn. .OR) is assigned with the sales area. 3. Otherwise.Combining Sales Orgn / Distribution Channel & Division : If all sales document types are allowed for all sales organizations. enter the Organisation unit which will be used as reference Menu Path: IMG → Sales and Distribution →Sales → Sales Documents → Sales Document Header → Assign Sales Area to Sales Document Types → (on the new pop up menu) Combine Sales Organizations 28 . Prerequisite: Following master data are required 1. Enter and save. SALES ORDER CREATION Definition: A Sales order is an agreement between company and customer for delivery of goods or services at certain time and on agreed terms. All Sales documents are created under a sales area.Channel & Division leave the field blank. Eg: Standard sales order ‘OR’ The Sales area is responsible for execution of sales order on the terms agreed. Distribution Channel.Dist.To create a sales order in a specific sales area. it is important that the sales order document type (eg. All other fields will get automatically assigned. Customer master data. Material master data. Material No and desired Price. 2. Standard practice is to assign your own Sales orgn as ref. Combine Division: 29 .sales org. Combine Distribution Channel: Similar to assignment of sales organization assign Distribution channel and Division as references.Combine Sales Organisations: Assign a ref sales organization against your sales organization. Enter and Save your entries.standard Sales Document Type. Eg On this page please select Sales area (ZZ01/Z6/Z7) is assigned with ‘OR’.STEP 17: ASSIGN SALES ORDER TYPE TO SALES AREA Menu: IMG → Sales and Distribution →Sales → Sales Documents → Sales Document Header → Assign Sales Area to Sales Document Types → (on the new pop up menu) Assign Sales Order Types permitted for Sales orgn. 30 . and assign your Sales Area to the Sales Document Type. Your Sales Organization. Here enter the Order Type. Click Enter (or) 31 .STEP 18: SALES ORDER CREATION Menu Path: Logistics → Sales and Distribution → Sales → Order → Create Transaction Code: VA01 click on ‘Create’ Sales Area data is mandatory for creating a Sales order. Distribution Channel & Division. Enter Sold-to party and PO number as customer reference and Press enter or click Ship to party automatically. System determines Enter Material no and Order quantity and press enter or click 32 . Material & Quantity are the inputs that need to be provided for a sales order.System automatically determines Plant and pricing from the system settings and condition master. 3. Sold to party. From Customer-Material info record if maintained there 2. The Plant and Pricing is determined automatically as seen above. Any other details can be derived from the data already stored in various master data.Item category also gets determined. Click to save the sales order. From Customer master record of Ship-to party if maintained there. Delivering plant is proposed in order if it is maintained in master data and the preference is as follows: 1. 33 . From Sales view of Material master if maintained there. ** If records are not maintained Delivering plant can be entered manually. Now. UNDERSTANDING THE SALES DOCUMENT: Sales Document consist Header level data. . Material. HEADER LEVEL: The data in the document header is valid for the entire document.Specific to an Item in the order. Document currency and Pricing date Next click on tab ‘Shipping’ 34 .Each sales document can have several items. . Item level data & Schedule lines. e.g.g. Quantity.Delivery item must have schedule line . Order date ITEM LEVEL : Each item in the sales document contains its own data. Delivery Items SCHEDULE LINE: Schedule lines contain delivery quantities and delivery dates. PO Number.e. e. Sold to party.g. . Check Sales area data. STEP 19: VIEWING HEADER DATA In main menu follow Menu path: Goto → Header → Sales or click on icon Check Header data on all the tabs.Individual items can be controlled differently. Free of charge Items. .One item can have multiple schedule lines. Check Shipping Condition and total Weight/Volume Click on tab ‘Billing Document’ Check Incoterms. Terms of Payment terms – These data are copied from Customer master. 35 . Billing Block if active will be visible over here. 36 .Click on tab ‘Conditions’ The header level conditions will be displayed on this tab.The Net price of the document will be displayed against the ‘Net’ field. Click on tab ‘Partners’ Check the Partners and details are correct. Similarly other relevant tabs of Header data to be checked and changed if required. 37 . Click on ‘Sales B’ tab Product Hierarchy and sales relevant material data is copied from material master by system.STEP 20: VIEWING ITEM DATA In main menu follow Menu path: Goto → Overview Next to check on Item data select item and follow Menu path: Goto → Item → Sales A or click on icon Item data screen will be displayed as under: Order quantity entered in overview screen is displayed here. Pricing conditions are determined here and some records can be entered manually if required. Check if pricing amount is correct. Shipping point and Weight/Vol of item. Click on tab ‘Billing Document’ Here Header data is copied on to items. 38 .Click on tab ‘Shipping’ Check Plant. The Pricing procedure controls the way the prices are calculated. Click on tab ‘Conditions’ The Pricing data maintained as Condition records for the specific product will be displayed on this tab. Every delivery required by the customer form as a single schedule line in sales order.Understanding Schedule Lines: Click on tab ‘Schedule Lines’ Check if schedule lines have been created and quantity confirmed on dates required. 39 . To open schedule line detail for a particular item Select the entire line item and double click it (or) click on Schedule line. Detailed view of a schedule line can be seen by Double clicking on the item row or by clicking on icon on the bottom of the page. Similarly data can be checked and maintained on other tabs like Text and Partners as required. The Sales order no will be displayed at the bottom of the screen. Next In main menu follow Menu path: Goto → Overview or icon – This will bring up the overview of the sales order. shipping and Procurement details for the specific Item. Next follow Menu path: Edit → Incompletion Log to check completeness of document Complete the incomplete data if any. Then press Following message is displayed at bottom left corner of screen to save.Once the Schedule line details are open please verify the sales. 40 . Click Sales order creation is complete.