SAP : System Application & Products in Data Processing

Integration between the modules are very tight.

Architecture of SAP : 3 Tier
AMC : 22% of license cost. Application
Layer

Architecture:
Sales Database
Layer
 Application Layer
 Database Layer
 Presentation Layer

Landscape: A landscape is a physical arrangements of servers. SAP suggest to go

for three servers.
1. Development
2. Quality Test (Assurance)
3. Production

1. Development Server: will be used to configure the clients' business process

into SAP. Development Servers will be used by consultants.
2. Quality Servers: will be used for testing the scenarios, core users &
consultants will use the quality servers.
A core users is the employee of client who has good experience and
exposure in client business process.
3. Production Server: is the live server where end-users will do the live day-to-
day transactions in SAP.

Each server can be partitioned into multiple parts which are called clients like:
200 300 400

(R & D) (Actual Configuration) (Technical Developments)

The client has to purchase these three servers from vendors like 1 BM/ HP/ Dell etc.
Version:

4.6 4.6C 4.7 5.0 ECC 6.0

EHPC
(Enhancement Pack)

SAP suggest to create any new entries with first character as 'Z' or 'Y'.

The system determines Z & Y as user defined. Anything besides 'Z' or 'Y', system
identifies it as standard or SAP provided.

When we upgrade system from one version to another version if it is 'Z' or 'Y' system
automatically copies into target versions like:

Y or Z
4.7 6.0
Automatically
T or others

Forcefully

Implementation: If client is using some Legacy System (Non SAP) and if we want to
change it to SAP, we configure the clients business processes, newly into SAP and
give it to client.

Support: Client already has SAP, our role is to solve the tickets (issues) raised by
client and give to client.

Rollout Projects: Rollout means if client is coming out with new plant for which they
have no configurations existing in the present SAP system.

UpgradationProject: Upgrading system from one version to another project version.

Modules involved in SAP:-
SD, MM, PP, FI, HR, C Core Modules
HR, CRM, QM, PS, CS, PM

Implementation:
To implement SAP in any client, we use ASAP methodology.

ASAP- Accelerated SAP Methodology.

ASSAP Methodology has 5 phases, they are:
1. Project Preparation.
2. Business Blue Print.
3. Realization.
4. Final Preparation.
5. Go live and support.

I. Project Preparation:
TCSManagement AlkemManagement
BDMIS VP Finance
Delivery Heads VP IT
Project Manager Project Manager
Technical Head Technical Expert

The business to SAP is licenses

i) First activity is to decide the No. of licenses the client requires, each
license = Rs. 80,000/-; Eg:- 900 x Rs. 80,000 = Rs. 7,20,00,000/-.
ii) Then decide on the landscape
Development Quality Production

Size Server Server Server

• Sizing of the server, based on the clients volume of business

transactions
 • When to purchase the server from anywhere costs upto 20 lacs,30
lacs,40 lacs…..
• infrastructure: How many Pc's client has which supports SAP,or we
have to buy it
• Environment: Where servers should be placed in company based on
security (only VP & Tech Supports) Maintain 15 C temperature in
server rooms.
iii) Infrastructure : How many PC's client has which supports SAP or we have
to buy it.
a. Environment: where servers should be placed in company based on
security (only VP or Tech Supports). Maintain 15 0C temperature in
serves room.
iv) GSK will list out core users and IBJM will list out consultants.
a. Core user is an employee of client who has good experience and
exposure in clients business process. Through out the project, for
consultant, the single point of contact is core users.

TCSManagement GSKManagement
2 SD 4 – Core users
3 MM
2 PP
4 FI
1 Basis
3 ABAP
----
15 – Total Team size.
----

v) Go-live date: Handing ever SAP to client, on an average, an Indian client

has project, tenure as 8 months, for foreign clients it is 14 months.
vi) Consultants Facilities: Working area, accommodation, travelling, food etc.
vii) Scope of Project: GAP analysis
 GAP – These processes in client, which don’t have solution in SAP.
Kick off meeting: Invite the 15 TCS members in management.
a. Introduction about the project and client.
b. Starting date of project.
c. Rules & Regulations.
d. Scope of project.
e. Share Go-live date with consultants.
f. Sharing of core users list.

II. Business Blue Print Phase: (3 months)

• Day 1, we visit the site like plants etc.
1. Requirement Gathering: Based on questionnaire, we gather requirements
from the core user.
• Every day, from 10 am to 3 pm, we sit with the core users and gather
the requirement and prepare the AS-IS document.
• Requirement gathering is lasting for around 2 months.
2. Prepare BBP document (Business Blue Print)
• To- Be doc: To-Be doc is how AS-IS is going to be in SAP.

AS-IS To-Be
SAP
SAP
Gaps

• We find gaps while preparing To-Be document.

• After preparing the To-Be document, send this document to the core
user. If the core user is fine with the business core user, he gives a
"Sign Off" i.e., his acceptance, this process takes one more month.
• BBP phase is most critical phase of the project. Since, the success of
the project only depends on how accurately we gather the
requirements from the users.
 • Most of the problems comes with business blue print since the core
user don’t support us since he never come on time and cooperates,
they don’t want change.
• If this happens, we should see for 4-5 days and escalate the issue to
our project manager.
• Core users will join an SD course.
o In interview, we say still we dint face any problem in BBP.

III. RealizationPhase:(2 ½ months)

Mapping of the To-Be process in SAP in called realization. Configuration of business
process of client in SAP.

Realizatonis donein developmentserver;

There are two types of configuration
i) Base-line configuration
ii) Final configuration

• Base-line Configuration: This configuration is only pertaining to SD module.

No other module is required.
• Final configuration: This cannot be done independently. We require help of
other modules.

200 300 400

Client Client Client

• Functional Specifications: We take the requirements from the users and

prepare functional specifications for the technical consultants.
• When we are configuring in development server, system will ask for request
numbers. We need to save the configuration in particular request numbers.
This request numbers will help us to transport the configurations from one
server to other.
• After configuration is over, we import all the requests from 300 clients to 400
clients.
• In 400 clients, we do internal testing. There are two types of testing.
o Unit testing
o Integration Testing.

• Unit Testing is we can do it on our own S.D. i.e., we do not depend on other
modules.
• Integration testing means that we need help of other modules like MM, FI, PP
etc.

→ We do testing with the help of test cases. A test case is a document

which consists of how to test, what test and what is the result.

• Configuration Document: It consists of whatever we configure for that

particular clients requirement. This document will hand over to the client. This
document will be used for KT purpose.
• Transport requests from development to quality server:

Dev Quality

IV. Final Preparation:(2 months)

a. Prepare User Manuals: A training document for the users like T. codes,
directions after preparing manuals, we give it to users.
b. Training to Core Users: Hands on training also for the end users.
c. User Testing: Phase when core users test the scenario.
→ After testing, if everything is fine, we need to take VAT signoff.
→ After VAT signoff, we transport from quality to production server.
→ After Transferring the requests from quality to production, we start
"Cutover Activity".
 Cutover: Uploading of master data and open transaction data from legacy to
SAP system.

Cutover Period: on cutover strategy: The period in which we actually start

uploading the data from legacy to SAP.

Normally, we take 2 days of time for cutover period. In this period, we will ask
client to stop the business.
V. Go-Live: Handing over SAP to client to start the day-to-day transaction in SAP.

Support:
→ Any support project will have an agreement between client and support
partner.

SLA : Service Level Agreement

Levels of Issues:
1. High Priority:- 4 Hrs to resolve.
2. Medium Priority:- 24 Hrs to resolve.
3. Low Priority:- 48 Hrs to resolve.

1. HighPriorityIssues:- Those issues which are stopping the business, comes with
high priority. Any high priority, we check in the master data.
Core User

Help
Desk

Mail Ticketing Tool

TicketingTool:
1. Remedy 2. Perigrim
3. Citerix 4. Edge
5. Tivoli

Ticket Tool
Coordinator
SD
Consultant

The ticket will be raised by the core user and it reaches the coordinator. The
coordinator will allocate the issue to the respective SD or MM (a) etc consultant. If
we are the SD consultant and got the ticket, we need to send an acknowledgement
mail within 5-10 minutes to the core user and coordinator.

Then we open the issue email, it has the attachment with the screen shots of
the issue. if the issue screen shots are not sufficient, then immediately send email to
the core user about sending more details and take the ticket status as 'pending'. This
will stop the clock for that time. We have to respond to the core user's mail within 10
minutes. Its written in SLA. Now, to test the error, we test the issue in pre production
server. Once we solve the issue, we make configuration changes in the development
server.

Then we transport it to quality server and ask core user to test the issue. We
then receive an email from the user about the issue being resolved. We later close
the issue in ticketing tool and prepare the document about the issue.

Change Request: (Issues)

→ Anything which is not there in the present configuration or implementation, is
called change request.
→ For every change request, we prepare a change request document.

It consists of:-
a. Ticket
b. why are we treating as change request.
c. What could be the solution.
__________________
__________________
__________________
Functional man days 20.
Functional man day 10.
→ Send this document to our lead. Then lead goes through the document and
approves it.
→ After approval from lead, send this document to the core user.
→ Core users may negotiate on number of days we need to configure it.
→ After he realizes your comments valid, he approves it.
→ The we start working on it.
→ All enhancements are change request.
→ The team size depends on the client in India. It is like 10-12-15 members.

In support, if the team size in more, then we divide teams in levels.

Level – 1 : Deal with transactional issues.
Level – 2 : Deal with configuration issues.
Level – 3 : Deal with enhancements.

Creating Inquiry:
Login to SAP – Double click on SAP logon pad on the desktop. Click on IDES and
click on Logon.
User ID – SAD user
 Password – INDIA 123.
Easy access screen: End users will work on easy access screen.
IMG Screen: The transaction code for IMG screen is 'SPRO' then click on SAP
reference IMG.

Note:- If we are into any other screen, than easy access screen and want to use
T.Code, we need to use either /n or /c before T.Code.

→ T.Code will help to take you directly into the required screen.

Creation: Inquiry - /n VA11,

Quotation - /n VA21,
Order - /n VA01,
Delivery - /n VL 01N,
Invoice - /n VF01.
 ENTERPRISESTRUCTURE

Enterprise Structure means the structure of an organization like corporate

office, plant, distribution channels, divisions etc.
i. Company Code: A Company code is a legal entity which is responsible for
external financial transactions happening in the company. The external
financial transactions are balance sheet, Profit and Loss a/c statement,
company code is a registered company.

Name: (Bukrs)
For multiple company codes:
i) Having sister concerns.
ii) Having operations outside the country.
→ In SAP every organizational unit will have a code and we identify
organizational units by code.
→ Company code is a 4 digit code. It can be characters/ numeric/alpha numeric.
→ FI consultant is responsible to define company code in SAP.

Path: SPRO→1MG→ES→Def→Fin. Accounting→Edit, Copy, Delete, Check CD.Code

Co.Code : VALK
→ Double click on execute button.
Co. Name: Alkem Labs Ltd.,
→ Double click on edit company code data. City: Mumbai
Country: IN
→ Select the Std. Co. code '1000'. Currency: INR
Language: En
→ Click on 'Copy'.
→ Go to address icon to maintain the address of the company
→ Enter the detailed address and then save (Ctrl+S).

ii. Sale organisation: A Sales Organisation is an organizational unit in sales and

distributers, which in responsible for all sales and services happening in the
company.
 The sales Organisation is responsible to take strategic decisions related to
sales and services. In sales organisation, we will find Vice-President sales
and director sales who will take the strategic decisions.

To have multiple sales organisation scenarios are:

a. De-Centralization of company's sales.
b. Also domestic Sales & Export Sales
→ SD Consultant is responsible to define sales org" in SAP. Sales org" is having
a 4 digit code.

Defining Sales org" in SAP:

Path: SPRO→ES→Def→S&D→Def, Copy, Delete, Check sales org

→ Double click on define sales org.

→ Copy the standard 1000.
→ Rename it.
ZFOD → Food sales org.
As soon as we enter the name, it asks for address. If it’s a physical unit, give
address, change the currency to 'INR'.

Note:- (the address text)

The address text in the sales org. will help you to print the sales org. address into the
output. (Print, Fax, Email)

Customerunits-companybill:
Inter company bill is a sale between two company codes. In this scenario, the selling
company will raise the invoice to the purchasing company.

SalesOrganisationCalendar:
The factory calendar specifies the holidays and working days.

CreatingFactoryCalendar:
 Path: SPRO→SAP Netware →General Settings→Maintain calendar

→ Click on holiday calendar.

→ Click on change button.
→ Go to 'create'.
Z1 | Mumabai Holiday calendar

→ Click on Assign Holiday.

→ Go to factory calendar, click on change. Go to create.
Z2 | Mumabai Factory calendar

→ Select working days.

o Monday
o Tuesday
o Wednesday
o Thursday
o Friday
o Saturday
ClickSpecialNote: to make holidays as working days.
→ Define factory calendar and assign to sales organisation.

Rebate:- A rebate is a special kind of discount which will be valid over a specific
period of time and specific volume. If customer reaches that volume, then only he is
eligible for rebate.

• Rebate proactive is one of the prerequisite to process rebate in the

organisation. If we do not check this system will not give rebates.

ALEdata for purchaseorder:

In standard SAP while doing third party process and individual purchase order
process, when you are creating sales order, system automatically generates
purchase requisition in the background, purchase order with reference to purchase
requisition.

If we want system to generate automatic purchase order while creating sales order in
3rd party and IPO process, then we must maintain ALE data for purchase order.

Distribution Channel: The way of selling the goods to customer or the means of
distributing the goods to the customers. SD consultant is responsible to define
distribution channel in SAP. The combination of sales organisation and distribution
channel in called sales line.

A Distribution channel is a logical entity. It would have a two digit code.

GSK Direct Path:

Distributor Dealer Institution

Customer
Retail

→ Click on 1 MG activity.
→ Click on define dist channel.
→ Go to new entries.
Y5 – Dealer.
Y6 – Distributor.
Y7 – Institution
Y8 – Direct.
Division: A division is a product line or range of products. A division will have two digit
code. The combination of sale organization, distribution channel, division is called
"Sales Area".

In SAP-SD, Sales area plays a vital role. Whatever transaction we create in sales, it
should be routed through a particular sales area.

SD- consultant is responsible to define division.

Defining Division:

SPRO – ES – Def. – Logistics General – Def, copy, del, chk division.

→ Click on 1 MG activity.
→ Double click on define division.
→ Go to new entries.
T5 – Gynecology.
T6 – Paediatric.
T7 – Antibiotic.
T8 – Insulin.

Sales Office: A sales office is a physical location where a group of people work
together to perform sales (Branch Office).
Difference between sales office and Sales org is.

SalesOrganisation SalesOffice
Strategic decisions related to Strategic decisions cannot be
1. 1.
sales can be taken. taken.
2. VP & director sales present. 2. No. VP & Director – Sales
Sales Area Managers & Zonal
3. No. Managers 3.
Managers.

SD consultant is responsible to create sales office.

Path: SPRO→ES →Def.→S&D→maintain sales office.

 DHYD | Hyderabad Sales Office.
→ Go to new entries. Eg:-
→ Enter address & other information.
→ Copy.

Sales Group:- A sales group is a group of people working in a sales office (or)
hierarchy of people (or) hierarchy of employees in a sales office.
SAP-SD consultants are responsible for sales group creation.

Defining Sales Group:

Path: SPRO→ES →Def.→S&D→maintain sales group.

INS – Insulin
ANT – Antibiotics
OTH – Others.

PLANT Production
Area
Finished Goods
1 2 3 4

Quality

Storage FG Storage
Location Location

Dispatch

Out Gate
→ MM consultant is responsible to define plant in SAP
→ A plant is a physical location where manufacturing is done. i.e., conversion of
raw material into finished goods.
→ A plant can also be defined as a physical location where we store the goods.

DefiningPlantin SAP:

Path: SPRO→ES →Def.→Logistics General→Def, Copy, Del, Chk Plant

→ Double click on define plant.

→ Select the standard 1000 and copy it.
→ It’s a 4 digit code. ex:- AVAP – Vapi manufacturing plant
→ Define a factory calendar to the plant.
→ As soon as we press ↵, it asks for address, enter address and save it.

Storage Location:

A Storage Location in a place where we store the goods within a plant.

→ MM consultants define storage locations.
→ Pharma industry generally have storage locations.

Path: SPRO→ES →Def.→materials mfgt.→maintain St. location

→ Mention the plant & enter.

→ Mention plant code.
→ Go to new entries.
Ex:- Z001 – FG1 – 5 degrees temp.
Z002 – Normal temp.

Shipping Point:
1. Immediate shipping point
2. Manual shipping point
 3. Automatic shipping point
Def:- Shipping point is a physical location where we do the process of loading the
goods into trucks for delivery.
• A shipping point is always within a plant.
• SD consultant is responsible to define a shipping point in SAP.

Path: SPRO→ES →Definition→logistics execution.→Def. Copy, Del, Chk shipping point.

• Double click on define shipping point.

• Select the standard shipping point 1000 and copy it.
Ex:- ZMAN – manual shipping point.
Note:- The factory calendar in shipping point will help you to perform delivery
scheduling in sales documents.

[Delivery Schedule time = loading time + pick/pack time

LoadingTime:(WithDays)
Loading time is the number of days taken to load the goods into truck for deliveries.
Loading time is one of the parameter to perform the delivery scheduling in sales
document.

Pick/Pack Time: Pick/Pack time is the time taken to pick the material from storage
location. This is also one parameter to perform the delivery scheduling in sales
document.

Determine Load Time: This field controls from where loading time should be
considered while performing delivery scheduling. We can maintain loading time in
two places. One is at shipping point and other is route dependent.
→ If we want system to consider loading time from shipping point then maintain
value = 'C'.
→ If we want system to consider loading time from route dependent, then value
to be maintained in = 'A'.
DeterminePick/Packtime:
This field controls from where system should consider pick/pack time while
performing delivery scheduling in sales document.
• If we maintain 'C', it will take from shipping point.
• If 'A' then route dependent.

WorkingTimes:
If we have shift system, in shipping point, then maintain 'Working time'.
(Press F1 on field > click on customizing > it will take you to path)
Path: SPRO→Logistic Execution →Shipping→Basic shipping→Scheduling shipping→
scheduling → delivery scheduling & transportation scheduling → maintain
working hrs.

FromText Names:
It will help you to print the shipping point, address into printouts (outputs). The
standard output type for deliveries is LD00.

COMPANY:

A Company will group all the company codes into one.

Business Area: Business area is a location from where business is operated. The
purpose of business are is, it helps to generate internal balance sheet plant wise.
This is the responsibility of FI consultants. (Creation of it and maintenance).

Path: SPRO→ES →Definition→logistics execution.→Def. Copy, Del, Chk shipping point.

→ Copy the standard business area '1000', edit and create a new entry.
Ex: - ZFOD Food plant business area

Credit Control Area:- FI consultant defines credit control are. It is an organizational

unit which specific the credit dept in the company. It will help you to process credit
management in day-to-day transactions.

Path: SPRO→ES →Assignment→S&D→Assign sales org. to company code.

Assignmentof EnterpriseStructure:
Assign Company code to sales organization:

→ Click on 1MG activity.

Relationship: ZFOD - AALK
The relationship is one too many i.e., one company code can have multiple sales
organisations, but one sales org. can be assigned to only one company code.

Assign distribution channel to sales organisation:

Path remains same:
SPRO – ES – Assignment – S&D – Assign district channel to sales organisation.
→ Click on 1 MG activity.
→ Go to 'new entries'.
ZFOD – Y1 (Dealer)
ZFOD – Y2 (Distributor)
ZFOD – Y3 (Institution)
Save it and go back
Relationship is many too many.
Sales Org.
Level

Domestic Export

Dist. Channel.
Level
Domestic Domestic Domestic Domestic Domestic

In the above case, we only create 4 dist. channels.

i) Dealer, ii) Distributor; iii) Institution iv) Direct.
Since relation is many – to – many institution can be used in both sales organisation.

Assign Division to Sales Organisation:

The relationship between sales org. & division is many-to-many. i.e., one sales org
can have many divisions and one division can be assigned too many sales org.
→ Click on 1MG activity.

Path: SPRO→ES →Assignment→S&D→Assign Division sales org.

Setup Sales Area:

A Sales area is a combination of Sales org. dist. channel, and division.

APHA

A1 A2 A3 A4
E5
E1 E2 E3 E4 E1 E2 E3 E4 E1 E2 E3 E4 E1 E2 E3 E4

Total
(16 Sales Areas)

Any transaction we do in sales should be routed through a particular sales area.

• Assign Sales Office to Sales Area:
→ Go to new
into Vendor
entries and Save it.
• Assign Sales Group to Sale Office:
Store

→ Click on 1MG Activity and Assign. Department

Semi finished
goods

• Assign plant to company code:

Finished
Path: SPRO→ES →Assignment→Logistics General→Assign
Semi plant to company
Goods code.
finished
storage
location
Note:-
The relationship SAP says is many-to-many, because in intercompany sales, we
F.G
assign plant to multiple company codes. storage
location

Delivery Pick Pack

Assignmentbetweenplant & ShippingPoint:

Shipping
If plants are located in same places, the relationship
PGI
Pt.is many-to-many.
loading
gtp.

If plants are located in different places, relationship is one to many.

 PLANTSTRUCTURE

→ If stock comes down in store, the inventory creates the purchase order to
vendors.
→ Truck comes (raw material) quality checked then product starts.
→ Finished/Semi finished goods comes out.
→ Stored in SF goods storage location/ Finished goods storage location.
CMIR:CustomerMaterialInfo Record
If customer is placing an order with his own material code, then we need to assign
his material code with our material code.

T. Code of CMIR – VD51

Path: SPRO→ES →Assignment→Logistics General→Assign plant to company code.

VD51 – Create CMIR.

VD52 – Change CMIR.
VD53 – Display CMIR.
If material is manufacture in more than one plant, we are not supposed to maintain
delivering plant in material master..

→ Go to VD51; enter customer number, sales org. dist channel. Enter material
number and customer material number. Go to Details.

The fieldsthat are givenpriorityfromCMIRfirst are as:

1. Plant
2. Delivery priority
3. Minimum delivery quantity
4. partial delivery per item
5. Under delivery tolerance
6. Over delivery tolerance
7. Unlimited tolerance
Under delivery – warning message.
Over delivery – error message.

While creating sales order, user will go to 'ordering party' tab and enter customer
material number; system automatically determines our material numbers.
Tablesin CustomerMaster:
ABAP Dictionary
1. KNA1 – General Data
SE11 – to see the tables.
2. KNB1 – Comp. Code Date Se16 – to see the entries .

3. KNVV – Sales Area Data

Tablesin MaterialMaster:
1. MARA – General Material Data
2. MVKE – Sales Data for Material.
3. MARC – Plant Data for Material.
4. MARD – Storage Location for Material.
Sales Documents : A sales document is a document, which contains information
related to sales.

Structureof SalesDocument:

Header Data
Item Data
Sch. Line Data

Header Data: Header Data is a data which applies to all the line items in the sales
document.
Sourceof Headerdata is:-
1. Customer master.
2. Config Data (Pricing Procedure)
3. Control Data (Org Units) – like co. code, sales org. etc.

The table for Header Data in 'VBAK'. It is controlled by document types.

Item Data: Item data is a data which will be applicable to particular line item in the
sales document. i.e., every material will have its own data.
ex:- weight, units, specifications, pricing etc.
Source of item data is material master, CMIR, Control Data (Plant) some part of
config data, conditions master (pricing). Item data will be controlled by item
categories. Table for item data is 'VBAP'.

Schedule Line Data:- Schedule line data is a data which consists of delivery dates &
confirmed quantities. These are no source for schedule line data. It determines
automatically into sales document. This will be controlled by schedule line category.
Table for schedule line category is 'VBEP'.
Tablerelatedto SalesDocument:
VBKD – Business Data (cost, master, sales, shipping, billing data)
VBUK – Header Status.
VBUP – Item Status.
VBPA – Partner Data.
VBFA – Document Flow ***
ADRC – Customer Address.

T. Codes:

Sales Order - VA01 VA02 VA03 VA05

List of
Create Change Display
Orders
Inquiry - VA11 VA12 VA13
Quotation - VA21 VA22 VA23
Contract - VA31 VA32 VA33
Scheduling Agreement - VA41 VA42 VA43

Path: Easy Access→Logistics →SVD→Sales→Order→Create

→ Inquiry & Quotations are the pre-sales activity.

Inquiry:- Inquiry is a pre-sales document which we create in SAP, whenever a

customer enquires about a product along with quantities 'IN' is an internal document.

Quotation:- Whenever customer enquiries about any product, we send a quotation to

the customer and a quotation document consists of :
Validity period.
Pricing.
Product specifications.
Delivery dates.
Terms & conditions.
Quotation is a legal document.

Order:- The sales order is a legal document which is an agreement for delivering the
goods to customers with the accepted price.

Contract:- A contract is a legal document and its an agreement between customer

and company. Any agreement shall be having mutual benefit.

Benefit to the company is assured sales.

Benefit to the customer is discounts, less price, relaxation in credit period etc.

Scheduling Agreement:- Scheduling Agreement is also an agreement between

customer and company with predefined delivery dates (schedules).

Standard Sales process:-

→ IN - QT - OR - Delivery - Invoice

SalesDocs. DeliveryDoc BillingDoc

→ Contract - ReleaseOrders - Delivery - Invoice

SalesDocs. DeliveryDoc BillingDoc

→ SchedulingAgreement– Delivery– Invoice

Transactions Doc. type

Inquiry IN
Quotation QT
Sales Order OR

Creatinga salesOrder: (in VA01)

Error: Order type ' OR' has not been defined in sales area.

Sol: - to resolve this

Path: SPRO→S&D→Sales→Sale Docs→Sales doc header→Assign sales area to sales

doc types.
• Double click on combine sales organization.
→ Go to or sales org. and assign or sales org. in ref. s. org.
• Combine Distribution channels.
→ Go to or sales org. & Dist. channel & assign the dist. channel to Ref. Dist.
channel.
• Double click on combine divisions
→ Enter sales org. division & assign ref. div. doc.

 Common Divisions is for customer master

 Combine Division for sales order

• Assign sales order types permitted for sales areas.

→ Go to or sales area.
→ Go to new entries and enter the divisions and save.

• If we are creating sales order for the first time, we get an:
→ Error: 'No pricing procedure could be determined'
→ Sol: Goto T. Code-DVKK, Goto new entries.
Enter sales org., dist. channel, division, doc. PP-A, CPP-1 & pricing procedure
– RVAA01 & Enter↵ & Save it.

Shipping Point Determination:

Path: SPRO→Logistics Exe→Shipping→Basic Shipping fns→Shipping Point & Goods

receiving point det. →Assign shipping points.

Enter Shipping Condition – Shipping Tab

Loading Group – Shipping Tab Cost master
Plant – CMIR
and Enter↵ & Save it.
(or)

Goto VK11 to maintain condition records.

Enter PR00 condition type.
Select material with release status then ↵
Enter your material & amount ↵
Save it.

Document Type Controls:

T.Code : VOV8

Path: SPRO→S&D→Sales→Sales Document→Sales document header→Define Sales

document type →Select Standard Order (or) click on copy.

SalesDocumentControls(VOV8)
Controls:

1. SD Document Category: The document category specifies the functioning of

sales document.

List of SalesDocumentTypes:
Doc.
Transaction Transaction Doc. type
Category
Inquiry A Quality Contract QC
Quotation B Value Contract (Gen) WK1
Sales Order C Value Contract (Material) WK2
Returns H Returns RE
Contract G Credit Memo Request CR
Free of Charge I Debit Memo Request DR
Subsequent Delivery free of
Credit Memo K SDF
charge
Debit Memo L Invoice correction Request RK
Scheduling Agreement DS
Free of Charge FD
Cash Sale BV/CS
Rush Order RO
Consignment Filling CF
Consignment Issue CI
 Consignment Returns CONR
Consignment Pickup CP

SalesDocumentBlock: If you check this, the system will block the sales document type
for existing sales order.
We use 'A' for rebate processing document types.
ex:- B1, B2, R3, R4.

Indicator:- We use this field only for invoice correction request process (document
type – RK). It is sub-classification of document category.

The indicator 'D' controls that each line item from source document will be copied as
two line items in target document.
ex:- Invoice correction request should be always created with the reference to
invoice. If you have one line item in invoice that will be copied as two line items in
invoice correction document.

NumberSystems:
Number Range internal assignment:

Defining DocumentNumberRanges:
Path: SPRO→S&D→Sales→Sales Document→Sales document header→Define number
ranges for sales document.

NumberRangeExternalAssignment:
→ If you maintain external number in the sales order, then system will give first
preference to external. If external number is blank, while creating sales
document, then system proposes internal number.

→ Item number increment: This field controls how the item number should be
incremented in the sales doc. This field will have relationship with 'Co0py Item
#' field in copy controls.
→ Sub Item # increment: The sub item concept comes in BOM, free goods,
material determination etc. This field controls how the sub item numbers
should be increased in the sales in the sales doc.

→ GENERALCONTROL:
→ Referencemandatory: This field control whether any preceeding doc required to
create this document.
→ Check division: This field controls how system should respond if the division in
the header deviates from division in the item. i.e., whether to give warning (or)
error (or) no dialog box.
→ Item Division: If we check this, system copies division from material master. If
we unchk this, system copies division line item from header division.
The item division will have relationship with chk division because if we eant
chk division concept to work, we should always chk the box ' item division'.
→ Probability: This specified the chances of converting document into order.
→ Read info record: If we check this, system will read CMIR & determines it into
sales doc. If we un chk this, system will not read CMIR.
→ Chk purchase order #: If we chk this, system will give you warning message if
the same PO# is existing in the database while creating sales order.
→ Enter PO#: If we chk this box, if PO# is blank, while creating sales order then
system copies sales order # as PO#.
→ Chk Credit LImit: This field controls whether to process simple credit chk (or)
automatic credit chk.
→ Credit Management: We fix credit limits to the customers & during day-to-day
process, system checks whether the customer credit limit has exceeded (or)
not. If customer credit limit is exceeded, then system blocks the transactions
of the customers.
SimpleCredit Check: A Warning
B Error
C Delivery Block.
AutomaticCredit Check: D.
The difference between simple & Automatic credit check is-

Simple Automatic
In Automatic cr.chk, if the
In Simple cr. chk, if cust cr. limit
customer credit limit exceeds, you
1. exceeds, you can block only at 1.
can block at OR level (or)
order level.
Delivery level (or) PGI level.
In Simple, these is no concept of In automatic, we have risk
2. 2.
risk categories. categories.
In Simple, system considers only In Automatic, system considers
3. receivables (open items) while 3. open orders, open deliveries ,
performing Cr. Chk. open billing does, open items.
Credit Group: This field controls which transaction to block if customers credit limit
exceeds and this field is applicable only for automatic credit check.

OutputApplication: If specifies whether application is Sales | Shipping | Billing.

V1 V2 V3
Rest others are not of SD relevant.

Commitment Date: If we check this, system proposes commitment date & Committed
quantity in schedule lines.

Screen Sales Group: this field controls the appearance of the screens in sales
document. go to the display of the screens in sales documents.

DisplayRange: this field control is whether to display main item and sub item (or) only
main item.

Incompletion Procedure: It is a procedure which consists of all mandatory fields which

user has to enter while creating a sales order.

F-Code for overviewScreen: This field controls what could be the default screen while
creating sales order.
Ex:- we have CMIR concept. we enter cost material in 'ordering party' tab while
creating sales order, I want system to propose 'ordering party' tab by default, we use
the field F-Code for overview screen.

TransactionGroup: This field controls the T.Code of sales doc type. (IN/QT/OR/QC).

Quotation messages: While creating sales order independently, if there are any open
quotations, existing for the customer, then system will give a pop-up message with
the quotation details. If you want, you can copy (or) reject.

Outline Agreement Messages: While creating sales order, if there are any open
contracts existing for the customer, system will give a pop-up.

Document pricing procedure: This field is one of the parameter to determine pricing
procedure in the sales document.

Sales Org. /Dist. Channel/Division + Doc. P.P + Cust. PP = RVAA01

Sales

ex:- APHA+A1+E1+A+1 = RVAA01

Any requirement of document wise different pricing process, then we play with DPP
in sales document.

StatusProfile: A status profile is an order release process after creating sales order in
SAP, the authorised persons have to release the sales order, then only the sytem
will allow to process deliveries and billing.
AlternateSalesdocumenttype 1&2: While creating a sales order, if you want to shift from
one sales document to another sales document, then maintain sales document type
in this field.
Pre requisite for maintaining alt. sales document type 1&2.
ex:- OR | CS
1. Number system blank should be same.
ex:- Internal #, external #, item # inc, sub item & inc.
2. All determinations should be same.
3. The payment data should be same in billing document.

Incomplete Messages: If we chk this, system will not allow you to save the sales
order if any of the mandatory field is incomplete. If you unchk this, system will give a
popup if any of the mandatory field is missing. The popup asks whether to save (or)
edit.

Variant: Variant will help to control the fields in sales document.

ex:- (to make the fields-required, suppress, display, optional).
The T.Code for creating variant is SHD0
ShippingTab:
Delivery Type: This field will help you to propose delivery type automatically while
creating delivery document. The standard delivery type is 'LF'.

Immediate Delivery: If you chk this, system creates delivery automatically in the
background while creating sales order. We use this functionality for each sales (CS)
process & rush order (RO) process because for CS & RC system generates delivery
automatically in the background while creating sales order.

Delivery Block: If you assign delivery block here, system blocks the sales order from
creating deliveries. The authorised person has to release the order for delivery, then
only system will allow to create delivery.

Shipping Conditions: If you maintain shipping conditions here, it overwrites the

shipping conditions in customer master while determining shipping point in sales
document.
We use this field for cash sales process & rush order process to determine
immediate shipping point.
For CS & RO, we maintain '10'.
*** The logic why we maintain 'Imm' in CS & RO is we don’t maintain Pick-pack time
& loading time in immediate shipping point.

BillingTab:
Delivery Related Billing Type: If you maintain this, system will automatically take the
billing type while creating invoice w.r.t delivery. the standard billing type is F2.

Order RelatedBilling Type: If you are creating invoice w.r.t. order, the system takes the
default billing type from this field. The standard billing type is F2.

ex: Service, third party billing etc. This field will have relevance field in item category
between, cash sales, debit memo, credit memo.

Inter Company Billing Type: Whenever sale happens between 2 companies, one
company would raise invoice to another company. The standard billing type for inter
company is IV.

Billing Block: If we maintain billing block here, system automatically blocks the sales
order for invoice. The authorised person has to release it. The only, system will allow
to create invoice. We assign billing blocks to RE, CR, DR.

Condition Type Line Items: EK01, EK02, are the cost condition types and we use
EK01 if the price of the material is totally dependent on cost. We use EK02, if the
cost is only statistical purpose. i.e., cost does not have any effect on price.

BillingPlanType: We have 2 types of billing places.

1. Periodic Billing (Monthly Billing) – we use this in case of service contracts (or)
rental contracts.
2. Mile stone billing (Activity Based). ex: Project, constructions, bank loans.
RequestedDeliveryDate/ PricingDate/ PO Date:
Lead time in days: If we maintain this chk box, then it will overwrite the lead time days
maintained in material master. (MRP3 View) while performing delivery scheduling in
sales document.

Propose delivery date: If we check this, system proposes today's date as requested
delivery date.

ProposePO Date: If you check this, system takes today's date as PO date.

Datetype: (1) Day formats – DD.MM.YY. This controls the date format.

Proposal for pricing date: (A) This option will help you to determine the valid price in
that validity period.
Assignment:
OR/RO OR/CS CS/RO OR/RE IN/QT RE/CR
CR/DR FD/SDF OR/FD QC/WK1 WK1/WK2 CI/OR
Map the differences.

Item categories: Item category controls the line item data of sales document without
item category, its not possible to process sales documents. Each line item will have
its own category. The standard item category for OR is TAN.

PROCESSRELATED:

Process DocumentType ItemCategory

Order OR TAN
Inquiry IN AFN
Quotation QT AGN
Returns RE REN
Credit Memo CR G2N
Debit Memo DR L2N
Free Of Charge FD KLN
Subsequent Delivery
SDF KLN
Free Of Charge
Quantity contracts QC KMN
Value Contracts General WK1 WKN
Value Contracts
WK2 WKN
Material Specific
Consignment Fill up CF KBN
Consignment Issue CI KEN
Consignment Returns CONR KRN
Consignment Pickup CP KAN
Invoice Correction
RK G2N
Request
Scheduling Agreements DS LPN
Cash Sales CS BVN
Rush Order RO TAN
Third Party TP TAS
Make To Order MTO TAK

BOMHeaderPricing:- Item category

Computer – TAQ
CPU – TAE
Monitor – TAE

BOMItemPricing:-Item category
Computer – TAP
CPU – TAN
Monitor – TAN

Item ItemCategory
Free goods TANN
Third party TAS
IPO TAB

MaterialDetermination:- (Substituting the products in place of goods that are ordered)

HeaderPricing ItemPricing
 Header Item – TAX Header Item – TAPA
Sub Item – taps Sub Item – TAN
Stock Transfer – NLN (Plant to Plant, Depo to Depo, Plant to Depo, Depo to Plant)
Service item – DIEN
Make to order – TAK
Tent item – TATX

ControlsOf ItemCategories:-(T.Code:- VOV7)

Paths:-
SPRO – S&D – Sales – Sales Docs – Sales doc item – Define item categories

ItemType:-It controls the function of line item.

Normal item: Any Physical \ Tangible item. ( Standard item ( blank))

B Text item: User manuals

A Value Item: Manpower out sourcing. (Resource outsourcing), Concept selling

C Packaging item:

Businessitem: This field controls whether to differ business data from header to item.
If you check this system will allow to change the business data at item level (Billing
docs Tab) i.e. we can differ business data from header to item. If you uncheck this,
system will not allow you to change ( Display mode) the business data at item level.
I.e. system will not allow to differ business data from header to item.
VBKD- CMR - Sales, Shipping, billing data
Generally we uncheck this field.

Computer Rule: This field controls when the states of line item should be completed.
This field will have relation with positive negative quantity in copy controls.
For Inquiry AFN A – Tem will be completed with first reference .
For quotation AGN – B Item will be completed once you refer full quantity.
For Order TAN - - Blank – not relevant for completion.
Completion rule is applicable to item categories where in subsequent document is a
sales document. Subsequent document to sales order is delivery hence completion
rule is not applicable to sales order
C – Item is completed after the target quotation is fully reference.
KMN – C WKN – E - item is completes after full target value is reference.
Value contract – Release order subsequence document is sales to contract
completion rule applies.

Schedule Line Allowed : This field controls whether the schedule line data is allowed
or not for a particular line item.

Schedule Line Allowed – Blank or uncheck

DIEN – Service Item
KMN – Quantity Contract
WKN – Value Contract
G2N – Credit Memo Request
L2N – Debit Memo Request
If unchecked there will be no schedule line tab in the order.
We cannot see schedule line tab if the box is unchecked.
SpecialStock: Special stock is not unrestricted stock. It is restricted stock.
We have special stocks in consignment Stock [W]
Make –to – order stock E
Individual Purchase Order E
This field controls special stock. This field controls which stock should be controlled
while performing deliveries.
In SD we see Four Item Categories having special stock indicator
Make to Order – TAK – E Order on hand.
Individual Purchase Order – TABH – E
Consignment Issue – KEN –W – Consignment (Cust)
Consignment Return – KRN – W
In Individual Purchase Orders and make to order system will check sales order stock
while creating delivery.
In Consignment Issue and Consignment Returns System will check consignment
stock while creating delivery.

Item Relevant for Delivery:

This field is only applicable to Text items and value items. This field controls
whether the text item is relevant for delivery or not.
If we try to check this field for normal item system gives a message.
A and B is allowed only for value item and text items.
Text Item = User manual (TAIX)
Value Item = Out sourcing resources.

Billing Relevance: This filed controls whether the line item is relevant for billing or not.
If relevant whether it is order related billing or delivery related billing.
A – Delivery Related Billing TAN, TAB, TAK, KEN.
B – Order Related Billing REN< BVN, KRN.
C – Order Related Billing according to target quantity G2N, C2N.
F – Order Related Billing states according to Invoiced quantum [MIRO].
K – Delivery Related Invoice for partial quantity.
D – Relevant for Proforma – NLN

Not Relevantfor Billing:

FD – KLN OR – TAN - A TAB – A

SDK – KLN RE – REN B TAK – A

CF – KBN CR – G2N C KEN – A

CP – KAN DR – L2N C TAN – A

NL – NLN D BV – BVN B

Relevant for Proforma DIEN

F

C
 TAX

KRN

G2N and L2N have target quantity because schedule line allowed check box
schedule line allowed is Unchecked in third party. Customer give order for 10
quantity system generates PO for 100 quantity. We raise PO for 100 quantity.
Vendor delivers 60 quantity to customer. Vendor bills for 60 quantity (MIRO) we bill
customer for 60 (MIRO) quantity TAS = F.

In third party if we process with shipping notification the billing relevance in 'G' =
'K' – If your want to make partial invoices to single delivery use billing relevance 'K'

Returns: This filed contrls whether the items is normal item or return item.
• REN
• KRN
• KAN
• G2N  Return
• If checked for TAN Net value will be negative –

Billing Plant Type: Periodic Billing/ Mile Stone Billing.

Weight/ Vol. Relevant: If we check this system calculates the weight based on the
conversion factors in MMR (Sales Unit Conversion) and proposes in to sale
document line.

Billing Block: If billing block is maintained here system blocks that particular line item
for billing. The authorised person has to check and release the line item for billing
then only system will allow to create invoice for particular line item.

Return – REN, Credit Memo – G2N Debit Memo L2N there item categories have
automatic billing block while creating invoice authorization is required.
Header billing block applies to all the items in document. If item level blocking if
suppose some item require block some don’t then block here.

For user the billing block filed will be in grey mode only authorised person would
have access to the field.

Credit active: This field controls whether to update line item value in to credit
management.

If we don’t want particular line item which is slow moving not to be updated in credit
management uncheck for that particular item category
Example: Consignment is also for slow moving items.

Credit Active  Credit active unchecked

Order FD32 Order FD32

Prod1- 20000 Credit active Prod1- 20000
Credit active

Prod3 -30000 60000 Prod3 -30000 30000

Prod4-10000 Prod4-10000

Contracts & BVN, AFN, AGN, TANN, G2N, REN, KRN, KAN, KBN, will not have
credit check

Pricing: This field controls whether the line item is relevant for pricing or not.
X = Relevant for Pricing.
B = 100% discount
Blank = Not relevant for Pricing.
X = Relevant for pricing system determines the pricing of line item into sales
document.
B = 100% Discount (i.e.,) system determines the pricing to sales document but
system will deduct the total value by using condition type – R100
For TANN = B 100% Discount
If blank = Not relevant for pricing system will not determine pricing KLN, TAE,
TAP, TATX, TAPA, TAPS there item categories no pricing, so it is blank.
This field will have relationship with requirement field in pricing procedure.
Determine Cost: This field controls whether to determine cost into sales document or
not.
Cost will be determined into sales document with help of condition type VPRS.
To determine VPRS condition type the prerequisite is check this field Determine
cost.
The field will have relationship with requirement field in pricing procedure
VPRS – Requirement 4

Statistical Value:
Example – BOM Computer TAQ
CPU TAE Pricing X
Monitor TAE Statistical X
?? If higher authorities wants to know total sales of CPU (value) for six months. In
BOM header pricing scenario cost will not be there for TAE how to do this.
If VP wants a report on free samples sent for particular period ???
Put Pricing X (
Statistical X (
So that we can pull reports of the value sold in particular period
KLN Pricing Statistical
X X
In real time pricing blank will not be used mostly.
If we check statistical then value of the line item will be deactivated (i.e.,) the value of
the line then will not have any effect on Net Value Total.
 AUTOMATICBATCHDETERMINATION:
If we check this field system determines the batch automatically while creating
the sales order in regular process batch is used in delivery if we want in sales
documents also check here.
RoundingPermitted:
This field is applicable if we want to round the selling quantity decimals. If we
check this field system will round the quantity to the nearest value (liquid form
or weight form etc) pricing will be calculated accordingly.
OrderQty = 1
If we check this field system restricts the line item order quantity to '1'
Scenario: BHEL Heavy Machineries it by mistake end user create 2 or more.
Incompleteness Procedure: Item incompletion procedure contains item data
mandatory fields.
Status Profile: Applicable to line item. It is an item release process. Authorised
person should release the item.
CreateAutomaticPO:
If checked system will create PO automatically in the background while
creating sales order for third party and IPO processes.
3 controls for Automatic PO:
1. ALE data in definition of sales organisation.
2. Material master purchasing tab Automatic PO
3. Item category (VOV7) Create automatic PO.
Item category statistics Group: Controls whether to update line item data into LIS or
not.
Bill of Material Configuration: Where you have main item and components
StructureScope: This field controls whether to explode bill of material or not and also it
controls whether to explode single level born or multilevel BOM.
Single Level BOM A TAQ & TAP
Multilevel BOM B
For item Categories – TAQ and TAP we find structure scope.
ValueContract: This field is applicable one for value contract general WK1 [we will not
have specific material in value contract we would have value (ex) 2 Cr etc…]. While
creating value contract general system determines the material from here to
determine item category and the relevant information.
WKN → example: in VA41 computer is determined automatically while creating
contract.
Contract Release Control: This field controls the system response if the release order
value exceeds the contract value. i.e., whether to allow or to restrict.
A – Warning
B – Error
ItemCategoryDetermination
System determines item category based on
Sales Document Type
Item Category Group
Item Usage
Higher Level Item Category
⇒ Default Item Category
Item Category Group: Item category group is determined from material master Sales
org 2 tab.
Item Category Group:
NORM - Standard Item
BANS - Third Party
IPO - BANC
ERLA - BOM (header pricing)
LUMF - BOM (item pricing)
Scenario 1: If we want to change the item category in the sales document based on
material specific requests then use the field item category group.
Example: Client requirement in slowing moving items value should not update in the
system of credit management.
Client business has 100 products out of that 20 items credit should not be updated
in credit management. For 80 items TAN should be determined and for 20 YTAN.
Create new item category group ZORM assign to all 20 items for YTAN remove
credit active check in VOV7.
OR NORM TAN (80 Items)
OR ZORM YTAN (20 Items)
Item Usage: Item usage comes into picture whenever a sub item is automatically
determining into sales order other than BOM.
System considers item usage to determine sub items automatically and its item
category.
Scenario: Free Goods FREE
Packing PACK
Cross Selling CSEL
Batch Split CHSP
Material determination PSHP
PSEL
PSA1
PSA2
Free Goods: If we are entering free goods manually
OR into sales document then system will not
NORM consider usage while determining item category
FREE for free goods item
TAN Hence – OR NORM TAN TANN
TANN
Free goods cannot be determined in quotation and inquiry because item usage
concept works only for orders which have Document Category C
Free Goods in consignment issue
CI NORM FREE KEN KENN
KEN→ will have special stock indicator 'W' and movement type 633.
KENN → create new item category by copying KEN put pricing – B – 100% free
Free goods in third party
OR NORM FREE TAS TASS
TASS: create new item category by copying TS and change
TASS pricing – B 100% free

MaterialDetermination:
OR OR OR OR
NORM NORM NORM NORM
PSHP PSEL PSA1 PSA2
-- TAX -- TAPA
TAX TAPS TAPA TAN
Header Pricing Item Pricing
TAX TAPA
TAPS TAN
Scenario 1: Item usage can be controlled manually in one place that is in CMIR
(Customer Material Info Record).
If client's requirement is customers X, Y, Z if they purchase materials A, B, C system
should not update the value in to credit management.
Solution:- Create new item category YTAN Credit active uncheck Goto CMIR of
X, Y, Z customers. For material A, B, C put Z001 item usage. (Create new item
usage before).
VOV4 - OR
NORM
Z001
---
YTAN
Higher Level Item Category: This comes into picture whenever there is a main item and
sub item concept exists.
BOM, Material Determination, Free Goods, Cross Selling Packing, Batch Split.
BOM: Header Pricing example : Computer

Computer TAQ

OR OR

Monitor TAE
Keyboard TAE ERLA NORM

CPU TAE --- ---

--- TAQ

TAQ TAE
BOM: Item Pricing Example:- Computer
Computer TAP
Monitor TAN
Keyboard TAN
CPU TAN
TAP is determined by OR OR
LUMF NORM
---- ----
---- TAP
TAP TAN
Header Pricing Multilevel BOM
Computer TAP – 15,000/- TAE
Monitor TAE NORM
Keyboard TAE ----
CPU
RAM – TAE TAE
Hard Disk – TAE TAE
BOM in Consignment
CF
ERLA
__
__
ZKBN - Copy ZKBN from KBN – Maintain structure scope
ScheduleLineCategory: VBEP
It controls the schedule line data. Schedule line data consists of delivery dates and
confirm quantities.
DocumentType ItemCategories ScheduleLineCategory
IN AFN AQ AT
QT AGN BN BP
RE REN DN
DN
OR TAN
CN
 CF KBN E1
CI KEN C1
CONR KRN D0
CP KAN F1
Third Party TAS CS
IPO TAB CB

Credit Memo, Debit Memo, Contracts will not have schedule lines.
T.Code– VOV6
SPRO→ SD→ Sales→ Sales Documents → Schedule lines → Define Schedule line categories

Basic difference between schedule line categories

with MRP Without MRP

 Availability Check Availability Check

 Requirement Requirement

CP CN

ScheduleLineCategoryControls:
Delivery Block: If we assign delivery block here it will be applicable to particular
schedule line (if we assign in VOV8 shipping tab its applicable to whole document).
Movement Type: Any physical movement of goods requires movement type.
Movement type controls (2)
1. From where to where stock is moving
2. In controls inventory account document

Inventory accounting document is generated in sales when you do PGI (Post Goods
Issue).
AccountingEntry: Cost of goods sold (Cogs) A/c Debit
To inventory account A/c Credit
without movement type system will not allow to do PGI
CP - 601 1. It reduces unrestricted stock when you do PGI
2. It generates inventory accounting document COGS A/c… Debit
to inventory A/c. credit
651
DN - For returns.
1. Stock will be updated (or) added in restricted stock
2. No accounting document is generated (because stock is being taken
into restricted stock)
653 1. Stock will be updated in unrestricted stock
2. Generates accounting document COGS - … Debit
Inventory… Credit
655 Stock will be sent to Quality Inspection
657 Stock will be sent to Blocked Stock
E1 – 631, C1 – 633 D0 – 634, F1 – 632
641 We do delivery at supplying plant when goods are received at plant
they do MIGO.
647 We do delivery at supplying plant stock will updated automatically in
receiving plant MIGO in not required.
StockTransfer : NN – 641 & 677
Inter companystock: NC – 643 & 645

 Item relevant for Delivery: This field controls whether the item is relevant for
delivery or not. If we uncheck then system will not allow to create delivery for
that particular item (any item) AT, BP, CS
Item relevant for Delivery: ( CS its unchecked)
Order type : This field will help you to generate automatic purchase requisition in the
back ground while creating sales order during third party process and IPO.
CS & CB Order type = NB
Item Category: Like sales transaction we require item category in purchase
transactions mandatory, without that system will not allow to create purchase
transaction, so here we are creating purchase requisition in the background, so we
are paring item category information from schedule line category.

The item category is maintained for CS - 5 - Third Party

CB - 0
- Standard
CS – 5
 without Shipping Notification
Third Party
with Shipping Notification
2
Sales Order PR PO
Company
Invoice
Invoice
6 3 5 to
to 1 Company
Customer
4
Customer Vendor
Delivers
'5' Controls even if you do MIGO (goods receipts) in third party process system will
not update the stocks because system treats MIGO s Dummy.
We do MIGO in third party in with shipping notification.
2
Sales Order PR PO Shipping
Process
Invoice notification
to 6 3 5 to
1 Company
Customer
4
Customer Vendor
Delivers

Individual PO – Item category CB-'0'

'0' controls if you do Migo the stock will be updated

Sales Order 2 PR RO
Invoice M
5 Delivery Invoice
to I
6 Delivers to 3 4 to to
Customer 1 G
Customer by Company Company Company
O
Customer Vendor

NB P. Req del Schedule: This field we check only for individual purchase order
Process (IPO). If we check this sytem will pass the delivery dates from sales order to
purchase requisition.

Account assignment Category : This field we use only for CS &CB

CS – 1 – Third Party
CB – E – Customer Individual Request.
This field helps to determine G/2 accounts at the time of MIGO (Goods receipt) or
MIRO (Invoice requisition or incoming invoice) Vendor invoice
And it also controls inventory accounting document at the time of MIGO (i.e.,
inventory document should be generated or not.)
Fields (order type, item category, account assignment category)
Relevant for Third party and individual purchase order.

 Req/Assembly: If we check the system will pass sales requirements to MRP

(Material requirement Planning) a the time of saving the sales order.
For CN- It is unchecked CS, CB, DN, D0, F1 unchecked.
Availability: If we check this system will check the availability of stocks while
creating sales order and confirm the sales order.
CN, CS, CB, DN, D0 F1 – Its unchecked.

Product allocation: Reserving the stocks to customer, customer groups,

distribution channels to meet the future requirements. If we have product allocation
concept check this indicator. If we check this indicator system will consider product
allocation while performing availability check.

SCHEDULELINECATEGORYDETERMINATION
T.Code – VOV5
Item Category + MRP Type ⇒ schedule line category
MRP Type will exist in material master record (MMR)
We maintain – PD – Planning
ND – No Planning
 Requirement
TAN + PD = CP
 Availability

Requirement
TAN + ND = CP
 Availability
While determining schedule line category if MRP type combination is not available
system tries to determine schedule line category based on item category itself.
MRP type + Item Category ⇒ Schedule Line
___ + TAS = CS Third Party
___ + TAB = CB IPO
633
___ + KEN = C1 issue
___ + KBN = E1 Consignment fill up 631

___ + KRN = D0 Returns 634

632
___ + KAN = F1 Pickup
___ + REN = DN Returns
CP Cash Sale
Posting Stock
MB1C – T.Code
Movement Type – 561
Plant
Storage Location

Error-1: Posting only possible in periods … in company code.

Solution-1: Goto OBY6
Select company code …. Goto details (check fiscal year variant)
K4 – 9. V3 – 6
OMSY – Goto company code – 2012 year period 6. If it wont accept
MMPV – and close the periods till current month & year.

Error-2: G/L account…. does not exist in company code.

Solution-2: FS00 – give the G/L a/c number….. Company code.
Create with template
Copy from 1000 to our company code
if there is a block reborn by – ' '
Error-3: Period …… is not open for accounts type 'S' for G/L account 799999
Solution-3: OB52 go to our porting period variant (we find porting period variant in
OBY6) go to second year change to 2012

Other errors – Goto FBN1, OMS2, OMWB

OPPQ – OBBG
Error – Material not maintained for sales from India.
Solution: SPRO→SD→Basic functions→TAXES→Define tax determination rules.
New entries – sequence
IN – 1 – MWST
By this we get TAX field in material master record.
The activity system performs when you do PGI
→ Stock will be reduced
→ Inventory accounting document generates A/c entry – COGS a/c… Debit to
inventory a/c credit.
→ Updates is document flow
→ Delivery number will be updated in billing due list
Activity system performs when you create invoice
→ Generates accounting document. Customer a/c……… Debit
→ Update in Document flow. To revenue a/c……. Credit
→ Profitability analysis document generates
→ Cost centre documents generates.
→ Update in credit management.

Delivery:
Create Delivery – VL01N
Change – VL02N
for collective processing of deliveries VL10A – Line Item wise
VL10C – Schedule Line wise
Delivery due list VL04 or VL04N
The standard split criteria for deliveries
 → Shipping Point
→ Ship to Party
→ Into Terms
→ Delivery date
→ If any one of these differs Delivery splits

The standard split criteria for Invoice

→ Payer
→ Payment terms
→ Billing date.

DeliveryDocument:
The structure of Delivery Document Header data (LIKP)
Item Data (LIPS)
Source of Header Data (Delivery - Ship to party
Sales Document (Header)
Item Data (Some part)
Source of Item data (Delivery) Material Master
Sales Document (Line item data)
Schedule line data
Delivery Types
Standard – LF
Cash Sale – BV
Return Delivery – LR
Delivery w/o order Reference – LO
Stock transfer – NL
Inter company Stock transfer – NLCC
T.Code for Delivery type control 0VLK
SPRO→Logistics Execution→Shipping→Deliveries→Define Delivery Type.
Document Category: It controls the functioning of delivery document.
LF – J LR – T – Returns
If category is J- In delivery document post goods issue tab will appear.
If category is T- In delivery document post goods receipt will appear.
If we keep T for LF post goods receipt will come.

NumberRanges:
NR Int assignment: In delivery document also we can maintain external number.
If we maintain external number system gives preference to external number range
while proposing delivery document number if external number is blank then system
proposes internal number.
Item No increment: This field controls how the line item number should be increased
is the delivery document. This field will have relationship with copy item number field
in copy control.

Order Reference:
Order required: This field controls whether any preceeding document is required or
not to create delivery document.
LF – Sales Order required
NL – Purchase Order required
LO – No proceeding document required.
To create LO go to VL01N and click on the box above w/o order reference.

Default Order Type: While creating delivery without order reference LO system
determines the below info by DL.
→ Item relevant for delivery or not.
→ Movement type.
→ Whether item is relevant for billing or not.
→ Default billing type.
Whenever order required ⇒ no proceeding document required or purchase order
required system considers default or an type as DL and determines item category
DLN. For DLN system tries to determine schedule line category CN. From CN
system takes whether item is relevant for delivery or not and movement type
information.
From DLN system takes information whether item is relevant for billing or not (billing
relevance) and from DL system takes default billing type (VOV8).

STO Process:
In STO process when creating delivery system determines with help of delivery item
category NLN system tries to determine schedule line category from there system
picks normal type information VOV5 – NLN – NN.

641
Movement type
647
Item Requirement: This field controls whether to add new line item in the delivery
document or not. Standard is 202 by which system will allow to add new line item in
delivery document. If we wont to restrict change the item requirement to 201.
Storage location Rule: This field controls the automatic determination of storage
location in delivery documents we have 3 criteria or rules for determining storage
location automatically in to delivery document .
MALA [ Plant / Shipping Point / Storage Conditions]
RETA [ Plant / Situation / Storage Conditions]
MARE [ First Check MALA if not check RETA]

Determining Storage Location:

Path: SPRO → Logistics Condition → Shipping → Picking → Determine Picking
Location → Assign Picking Location.

Shipping – Plant – Storage conditions.

Storage conditions we maintain in material master record plant/ Storage tab.
Situation: User exits according to the clients requirement (situation).
Doc States Group: Controls whether to update delivery document data in to LIS or
not.

DeliveryItemCategories: 0VLP
MAT num '0' allowed; It controls whether to allow creating deliveries without material
code or not (text items) because text items we create delivery without material
number.
Item Category states Group: This field controls whether to update delivery item data
in to LIS or not.

Quantity:
Check Quantity '0': This field controls the system response i.e., how system should
respond if the quantity in the delivery document is ' 0'.
Check Minimum Quantity: We maintain minimum delivery quantity sales org. tab
material master record. This field controls how system should respond if the delivery
quantity is less than minimum delivery quantity maintained in MMR
A – Warning
B – Error
- No message

Check Over Delivery: This field controls how system should respond if the delivery
quantity is more than order quantity – Warning – Error. If we maintain B system will
not allow users to increase the quantities in deliveries.

This field will have relationship with customer master over delivery tolerance filed in
shipping tab.
Note:- This filed will not work if we maintain  unlimited tolerance in CMR

AvailabilityCheckOff: We perform availability check in deliveries in two cases.

1. When we are creating delivery without order reference.
2. When you are adding new line item in deliveries.

Rounding: This field controls whether to control the decimals to nearest value or not.

WarehouseControl& Packing:

Relevant for Packing: Returns, cash sales are not relevant for picking. Text
items and value items are also not relevant. this field controls whether the item is
relevant for picking or not.

Storage location required.

Determine Storage Location: This filed will help to determine storage location
automatically in delivery document. This field along with storage location rule in
delivery type will help to determine storage location automatically in delivery
document.
Automatic Batch Determination: This field is a pre-requisite to determine batch
automatically into delivery document.

Delivery Item Category:

LF - TAN LO - DLN
LR - REN NLCC - NLC
BV - BVN EL - ELN – In bound delivery
NL - NLN

BILLING:
Structure of billing document

Source of Header → Sales Order

Delivery Document
Payer

Source of Item → Sales Order

Delivery Document
Material Master

Billing Header – VBRK

Billing Item – VBRP

Billing Header will be controlled by Billing Type VOFA

Standard - F2
Returns - RE
Credit Memo - G2
Debit Memo - L2
Cash Sale - BV
Proforma Invoice - F5
Order Related
Proforma Invoice
delivery related - F8

Invoice cancellation - S1

Credit Memo cancellation - S2

No range Int Assignment: In invoice there is no option of external number range.

Item No increment: The field controls how the item should be incremented in the
invoice document.