UNIT 1

NAVIGATION
SAP systems are client systems (run several separate business operations at the same
time)
A client is an independent unit in the system
Sap Easy Access is the standard entry screen displayed after logon.
You can include an image for the initial screen (not exceed 20 kB)

A role describes a suitably defined number of activities in the system. User roles have to
be set up using the profile generator so that SAP system user can work whit user
specific or position related menus

Elements of the sceen layout: command field, standard toolbar, checkboxes, radio
buttons, tab, status bar (bottom), menu bar, title bar

F1 displays explanation of field

F4 display possible inputs values

The maximum of number of sessions can be set between 2 and 6.

UNIT 2
ENTERPRISE STRUCTURES IN SD
Organizational units are legal and/or organizational units in an enterprise

SALES:
Company code: legal entity and independent accounting unit. The smallest unit of
external accounting

Sales Organization: responsible for distributing goods and services, negotiating sales
conditions. Its used as a regional, national or international subdivision of the market into
account.
All SD documents are assigned to a sales organization

Distribution Channel: characterizes the way in which goods and services are distributed
(strategies to distribute goods)

Division: Is used to group materials and services

Sales Area: SO / DCH/ D

SHIPPING:
Plant: location where material stock is kept. Is essential for determining the shipping
point

Storage location

Shipping Point: highest level organizational unit of shipping that controls your shipping
activities. Each outbound delivery is processed by ONE shopping point
UNIT 3
OVERVIEW OF SALES PROCESSES

Presales Activities: Inquiries and quotations helps to determine important sales related
data and can be saved as documents

Standard Orders normally contain: customer and material info, price info, delivery dates
and quantities, billing info

Sales Order: Records customers requests for goods or services

In this process you can check the availability and transfer the requirements to material
planning

Procurement: can result from available stock, be guaranteed by replenishment, trigger

a make to order production

Shipping: Begins when you create the delivery document. Processes: picking and
confirming (optional), packing (O), planning and monitoring of transport (O), posting
the goods issues

Billing: copies info from the sales order and delivery docs.
Serves as a data source for financial accounting.
When you create a billing doc, the G/L accounts are normally determined. The system
carries out: a debit posting on customer Receivables account, a credit posting on
Revenue Account and the credit limit is updated

Payment: When you post an incoming payment the system carries out: a debit posting
on the cash account and a credit memo on the customers receivables account

Sales Processing
A document is divided into three levels: header, item and schedule line
Header: is valid for entire document
Item: each item can be controlled differently
Schedule line: Contain delivery quantities and delivery dates. Every item that is
to include an outbound delivery must possess at least schedule line.

Shipping Processing
Outbound deliveries: Are created for orders that are ready to be shipped
You can combine items from more than one order. To do that shipping pont, due date,
ship to address for example must correspond
A delivery doc is grouped into two levels: header (data for the ship to party, deadlines)
and items (materials, stock information)
A schedule line in the sales document can become an item in the delivery doc
Picking: you create a transfer order for an outbound delivery. The system can combine
more than one outbound delivery in a group pf transfer orders
Posting Goods Issue: Inventory management and delivery requirements in materials
planning are updated, value changes in the balance sheet accounts for inventory
accounting, creates documents for financial accounting. Status is updated
Billing Documents Processing
The system can combine a number of outbound deliveries in one billing document if
they have the same: payer, billing date and destination country

Is grouped into two levels: header (payer, billing date) an item (net values for item,
material)

UNIT 4
MASTER DATA IN SD

Several sources of data can be copied into SD docs. Most of them can be overwritten.
The sources if data include: customer master data, material master data, condition
master data, other sales documents

Customer Master
General Data: relevant for SD and for accounting. Tabs: Address (language),
control data, payments tx, marketing, export data, contact persons
Sales area data: relevant for SD. Tabs: Sales, Shipping, Billing document
(incoterms), Partner functions (Sold to party, ship to party, bill to party, payer),
Company code data: Relevant for accounting. Tabs: Accounting management,
payement transactions, correspondence, insurance

When you change a master record the changes do not affect the document already
created. The address is an exception.

Material Master
Basic Data: relevant for all areas
SD data: 1 delivering plant, material group, tax classification 2 material
group, product hierarchy
General/ Plant data: availability check, transport group. Loading group
Foreign Trade: Export data is valid for the delivering plant
Purchasing data
Variousb

Cross division Sales: Multiple materials with various divisions in a sales order (header
division 00). Customized on the sales document type

Customer Material info record: used for storing customer specific material data. Info
records values take priority over the masters
Sales orders can be placed with customers material number using the ordering party tab
page

Condition master data for pricing

Categories: Prices, surcharges and discounts, freights ant taxes
You can define condition master data to be dependent on carious data
Uses: percentage, quantity dependent, amount dependent surcharge or discount
You can maintain values within a condition record
Pricing is carried out using the condition technique
Additional master data
Output: is info that is send to the customer via various media (mail, EDI or fax)
Ouput type, transmition medium, partner function, time, language
Also takes palce using the condition technique.
The layout is defined by a form in SAPScript (assigned to an ouput type)

Incompletition log: data required for document for further processing

UNIT 5
SD PROCESSES. DATA DETERMINATION AND COLLECTIVE
PROCESSING

Function of the sales doc type

Different business processes can be identified and controlled by means of the sales
document type:
Standard order, rush order and cash sales (w/wo invoice), free deliveries (wo invoice),
returns (credit memo or replacement delivery)
Functions of SD docs: texts, availability check, delivery scheduling, pricing, credit
check, messages

Plant, shipping point and route determination

Plant, s point and route fields in a sales doc can be determined automatically and act as
a basis for delivery scheduling.

Determining the delivering plant automatically:

The system uses the following search strategy: customer material info record, customer
master record of the ship to party, material master record

Shipping Point: organizational unit responsible for processing shipping

You can define the times required for preparing and packing goods.
The shipping point is normally determined automatically for each item in sales doc.
Determining the shipping point automatically: for every item.
Defined on: Shipping condition from the sold to party, loading group in material data
(general/ plant data), delivering plant (automatic determination)

Route: is the path a delivery follows from the delivery plant to the ship to party
Determining the route automatically: for every item to be delivered. Defined on:
departure zone in customizing, shipping condition form the sold to party, transportation
group on material data, transportation zone on general data from the ship to party

Shipment Scheduling
You define the time at which the receipt of the goods at the customer can be
acknowledged (confirmed delivery date)
Different lead times are taken into account: preparation, loading, transportation an
transit time
Data used: order date, material availability date, loading date, good issue date (when
leave the plant), delivery date (requested and confirmed)
Total time via a route: transit time and transportation lead time
Backward scheduling
The goal of shipment and transportation scheduling is to confirm a delivery date
The customer requested delivery date is used to calculate the material availability date
and the transportation lead time. The delivery must be created on the earliest of the two
dates
If one of the two dates is before the order date confirmation cannot take place. The
system attempts to determine the next possible (forward scheduling)

Forward scheduling
Consider the time parallels of the work flow for transportation planning and picking/
packing. The longer is relevant for scheduling. The selection date is the earlier of the
material availability or the transportation planning date.
Two schedule lines are generated, one has no confirmed quantity and the second shows
the confirmed delivery date and amount

Collective Processing
You can use the delivery due list to create more than one outbound delivery
simultaneously

Outbound delivery options

Complete delivery: all items should be delivered at the same time
Partial delivery
Orders combined: only if items have common characteristics such as shipping
point, date, ship to party, route, incoterms

Picking is carried out when transfer order are generated.

From the transfer order you can print the picking list for use in warehouse

Also is possible collective processing for good issues and for billing.

On billing items must have specific common

Billing options: to combine items must have specific common characteristics (billing
date, payer, terms of payements,)
Invoice split: 1 outbound deliveries n invoices.
Separate billing document for each outbound delivery: 1 od 1 i
Collective invoice: n sales orders 1 invoice

Worklists:
Delivery list: process many sales doc for od
Picking list: transfer orders for picking
Good issue: post goods for many deliveries
Billing due list: create invoices for od and orders
UNIT 6
AVAILABILITY CHECK

Gen/plant tab in the material master. Check field type of availability check

The material availability date is determined from delivery scheduling. Enough material
hast to be available in time for delivery to the customer fore their requested delivery
date
The system calculates the time required for picking, packing, loading and transporting
the goods

Proposing a delivering plant: customer material info, ship to party master record and
material master record

You can configure which elements are included in an availability check according
transaction. You define types of stock (safety, in transfer, on quality inspection) which
inward movements (Purchasing order, production order) and outward movements
should be included in the check

Transfer of requirements
Transfers of requirements type can influence the availability check
The material can come from in house production or external procurement.
If there is insufficient material, purchase orders can be made via material planning

You can deliver an order in one complete delivery or several partial deliveries (proposed
from the customer material record)

Its recommended that you only implement an availability check at the end of
replenishment lead time
The replenishment lead time can be specified for each material

Backorder processing: manual with backorder processing (assigning quantities

manually), via rescheduling (using delivery priority proposed from customer master)

The availability check takes place o the material availability date. The materials are
required on this date, so there is enough time remaining for packing, loading and so on
before the required delivery date

Transportation Processing
Shipment function is optional. You can use it to combine deliveries with the same
transportation requirements (forwarding agent, destination, route, means of transport)

Creating shipments docs: the deliveries can be assigned to shipments manually

Items which were not already packed in the delivery can be packed in the delivery, can
be packed in the shipping units using shipping materials
Packed items are assigned to the required means of transport
Shipping units form delivery are copied and cant be changed

The freight costs are calculated in transportation and shipment processing areas and
appear as an additional entry in the customer billing document
The system transfers billing doc data in invoices, credit and debit memos to financial
accounting and posts this to the determined accounts.
Determination criteria:
Chart of account
Sales org
Account assignment group of payer
Account assignment group of material
Account key

UNIT 7
MAKE TO ORDER

Presales processing
Inquiries: customer requests to the company for a quotation
Quotations: offers from a sales area to a customer for delivering. Are legally binding
through the specified period. You can create quotations referencing inquiries.

Function of the item category

Key control instrument
Is defined in the sales document using the sales document type and the material (item
category group)
Can influence in: automatic pricing, if appears on an invoice, which fields are recorded
in the incompletion log, if appear on a delivery, texts types, if you can create schedule
lines

Assembly processing
Make to order process flow: materials are produced especially for a particular order
An individual customer requirement is generated from the sales order item and
transferred to materials planning

Make to order production without assembly processing

Transferred from the sales order to materials planning as an individual customer
requirement. Generate a planned order. Then you can create a production order from the
planned order

Make to order production with assembly processing

Dont need a planning run at this point for make to order with assembly processing. You
can create a production order directly form the sales order
The system returns the confirmed quantity and delivery date from the production oder
directly from the sales order

Packing
During packing, delivery items can be assigned to packing materials. The handling units
created can be packed in additional packaging materials
UNIT 8
COMPLAINTS PROCESSING

Credit memo requests (no deliveries or goods movements) G2

Damaged or faulty goods and incorrect invoices can result in complaints. If the
complaint is justified (and authorized), customer receive a credit memo

You CAN create the returns or a credit or debit memo with reference to a sales order or
a billing document.
You must enter an order reason and contain a billing block
Rejected items are not copied to billing documents although they are still available for
evaluation purposes

Returns RE
Returns can be created with reference to a billing document or a sales order
When the damaged goods arrive at your warehouse, post the goods receipt on the basis
of a returns delivery.
This posting can be made before or after the credit memo has been created

Invoice Correction (references to invoice)

If the billing doc contains mistakes.
Its always created with reference to the incorrect billing doc
A credit/debit memo item is generated for each item. At first, net value is zero. Then,
you can change debit memo items.
Items pairs that have not been changed can be deleted

Cancelling a billing doc

If the payment terms or address of payer changes a separate billing document is
generated

UNIT 9
ANALYSES FOR SD PROCESSES

Lists and reports

The sales information system SIS belongs to SD and helps you to make strategic
business decisions
Logistic Information library allows you to integrate standard and flexible analyses as
well as your own reports.
Lists Categories:
Online lists
Worklists: allows select tasks in sd and process them afterwards (ex. Delivery
due list)
Sales Information system
Decision makers can carry out multi level analyses on data specific to one application or
a variety of applications
Logistics information systems:
SIS sales
PURCHIS purchasing
INCO inventory controlling
TIS transportation
SFIS Shop floor
QMIS quality management
PMIS plant maintenance
Aggregates and stores quantitative and qualitative data on the warehouse

Composition of information structures

Statiscal tables: info structures
Types of information: characteristics, period unit and key figures

Standard analyses
Offer a wide range of functions for create complex database presentations and analyses
in the LIS

Flexible analyses
Which data in which format is combined to create an individual report
Offers additional functions:
Combine characteristics and key figures from different info structures in one list
Generate new key figures
Choose layout

Business information Warehouse

Administrator workbench: responsible for the organization of data is BW as well as
for the control, monitoring and maintenance of all data retrieval
Business Explorer: excel and web bases analyses (3 level)
Business framework components, source systems and Business Information
Warehouse communicate via BAPIs (business application programming interfaces)

SAP Business Information Warehouse allows you to view the:

Operative environment (OLTP- transaction oriented):
Informative environment (OLAP- analysis oriented)

Business content:
Roles, workbooks, queries, info cubes, info objects, extractors, info sources
UNIT 10
ENTERPRISE STRUCTURES IN SD

Enterprise structures: cost accounting, external logistics, accounting internal logistics,

inventory management

Organizational units in the SAP system: company, controlling areas, valuation areas,
plants, storage locations

The objective is represent complex corporate structures and adapt to changes in the
corporate

Integration of sales in financial accounting

All organizational units are subject to one business control

You can uses the company code and business area to represent a group from a financial
accounting perspective
Each company code represents an independent accounting unit. Several company codes
can use the same accounts
A business area is a separate business unit for which cross company code internal
reporting can be carried out. Are NOT limited by company codes. Must have the same
description

Sales structures:
Sales organization: represents a selling unit as a legal entity. Assigned to one
company code, has n plants
Distribution channel: provide a general structure for distributing goods.
Assigned to n sales organizations.
Division: broad product can be divided into divisions. Assigned to n sales org
Sales area: SO/ D CH/ DIV
Sales office: define geographical aspects. Assigned to n sales areas
Sales group: employees (sales persons) of a sales office. Assigned for each
division or distribution channel
Shipping point
Transportation planning point

Sales person: assigned to a sales office and group in the employees master record
Plant: assigned to one company code
Delivering plant: assigned to one or more sales organization and distribution channel.
Can have a different company code than the sales organization
UNIT 11
SALES ORDER PROCESSING

Possible sources of information:

Master data: customer, material and pricing
Existing document data
Customizing
Hard coded controls

The system, automatically derives the sales area from the sold to party

Business partners from the customer master:

Sold to party
Ship to party
Payer
Bill to party

Business data: payment conditions, incoterms

You can decide in customizing for the item category whether business data at item level
should be able to differ from business data at header level

Selected entry aids and techniques (HELP)

Options for changing document data
Fast change function: changes several items of a documents at the same time
Changing of several documents: to change the plan, currency, materials, pricing

Blocks: in sales order you can block the following transactions for shipping and for
billing (at header and item)

Reject: at item level. (Releases stock )

UNIT 12
CONTROLLING SALES DOCUMENTS
Controlling business processes in sales: are controlled by customizing for sales
documents.
To fully set up a business process in your system, you need to configure for forwarding
data from the sales document to subsequent documents (copying control)

Basic functions: You need to configure several general sales functions: partner
determination, pricing, message determination, text determination, material
determination, credit management, incompleteness, delivery scheduling

Controlling sales documents sales document type

Presales: IN, QT Sales: OR, RO, CS, CF, FD
Outline agreements: QC, DS, QP, WK1 Complaints: RE, CR, SDF, DR
You can also save default values that appear when you create a document.

Order type permitted for sales areas: You can use customizing to define which sales
document types are valid in which: sales organization, distribution channels, divisions

Controlling sales documents item category

Is defined with a four digit key. Two first characters provide a clue to the sales doc type
and two last the use.
Functions: delivery relevance (only for items without schedule line), competition rule,
pricing, billing relevance, boms
Every item in a sales document is controlled by means of its item category. This enables
you to use different items categories in different sales documents types

Sub-Items: you can assign an item to a higher level item. Also are alternative items in
quotations and inquiries but are not included in the net value.

Assigning item categories to sales document types: this is influenced by the item
category group for the material master record

Bill of materials: You can store structure in the system as a bill of material. All items in
bom must be flagged as relevant for sales
Exploding bill of materials. You define and assign item categories for the main and sub
items of the BOM in the sales document

Controlling sales documents schedule line categories

Various categories are delivered with the system to provide different control options for
the items. The first character indicates the sales process in which is used (A inquiry, B
Quotation, C order, D Return). The second indicates what happens to the schedule line
within logistics (D no inv management, X no inv mng whit issue, N no MRP, P material
planning, V consumption based planning)
Schedule lines contain info about goods mov, delivery relevance, purchasing, and
availability check
You can assign schedule line categories to each item category. Is influenced by the
materials requirement planning (MRP) type in the material record
First, it tries to determine use item category/ MRP type and then item category/no MRP
type
UNIT 13
DATA FLOW

Data flow in the application

Information is transferred from the preceding to the document to the subsequent
document (data flow)
Dialog box contains the six tab pages for inquiry, quotation, order, contract, scheduling
agreement and billing document

Create with reference: item selection

You can create with reference from both the initial screen and during document entry.
This allows you to group several quotations for a customer together in a single order.
You must configure the corresponding copying controls.

Create with reference: transfer

Using the copy button, the full quantities of all items are copied to the subsequent
document
If you want to restrict the reference to an item set the appropriate competition rule in the
item category

Copying control
You determine the details of the copying procedure in copying control.
To control the copying procedure, at each level you create:
Routines for data transfer
Copying requirements
Switches
Routines and requirements are written in ABAP/4
UNIT 14
SPECIAL BUSINESS TRANSACTIONS

Special business transactions

Rush Orders
Are sales document types that are used in the sales from plant process or for when the
customer needs to pick up their goods immediately from the warehouse.
When you save a rush order, the system automatically creates a delivery of type LF
Printing the invoice is automatic

Cash sales
When you save the cash sale, the system automatically creates a delivery of type BV
and prints a document that can be given to the customer as an invoice (message RD03)
An order related billing index is generated automatically. Do not print the invoice
during billing

Consignment processing
In consignment processing, goods are delivered to the customer but remain the property
of the company until they are actually used. An invoice is not created until the customer
withdraws goods from the consignment stock.
You process consignment fill-up with order type CF
Consignment issue is processed with order type CI. This is relevant for billing
If customer returns goods you can represent this with CP type (consignment pick-up)
If you want to reverse a consignment issue use type CONR (consignment return)

Deliveries free of charge and subsequent deliveries (FD and SDF)

You create a delivery free of charge document when you want to send your customer a
sample, for example.
UNIT 15
INCOMPLETENESS

The incompleteness log is a list containing all information that has been defined as
relevant for the sales document that has not been processed during sales document
processing

Incompletion log
You can define these data fields in customizing for the incompleteness log

Configuration of the competition log

The relevant information can be defined company-specific for each business transaction
in customizing

Controlling the incompletion log

This incompletion log differentiates between the following levels
Sales document header
Sales document item
Sales document schedule line

Status of complete sales documents

Incomplete document data affects further processing in different ways. A status group is
assigned to each filed in the incompleteness procedure
UNIT 16
FUNCTION AND SIGNIFICANCE OF PARTNER FUNCTIONS

Examples: customer, vendor, employee, contact person

Partner types
Allow distinguish between different business partners
AP contact person, KU customer, LI vendor, PE personnel

Partner functions
Represents the roles played
One partner may take several functions

Partner in the sales process

You can maintain partner relationships both in sales documents and in the master data.
Are proposed automatically in document header
In the sales documents, the system has been configured so that only one partner can be
assigned to each partner function. Only exception is for outline agreements (AA/AW)
You can also define partners at item level in the sales documents. Header partners cant
be changed at item level
It is also possible to enter or change the address of a partner manually. This change not
affects the master record

Configuration of partner functions and partner function determination

A partner determination procedure is where you determine wich partner functions may
or must appear
Partner procedures are assigned to partner objects as follows:
Partner object/Assignment key: customer master/account group, sales doc header/sales
doc type, sales doc item/item category in sales, free of charge/delivery type,
shipment/shipment type, billing header and item/billing type, sales activity/ activity type

Customer master and account group

Controls the amount of data and the response of customer master records
When you define the account group you determine:
for each data field, whether it is displayed or not
number range
control elements

Permitted partner functions per account group

Assigning permitted partner function to each account group
Because you control the customer through the account group, you assign all the defined
partner functions to each account group.
Customers from account group 0002 (ship to party), 0003 (payer) or 0004 (bill to party)
should not take on the function SP (sold to party)

Partner determination for sales documents

Several partner relationships are stored in the customer master record for a sold to party
You can also use other sources to determine business partners in sales documents
automatically, such as the tables for customer hierarchy (KNVH), contact persons
(KNVK), credit representatives (t024P)
UNIT 17 OUTLINE AGREEMENTS
Customers and vendors agree on the goods to be provided under certain conditions and
within a specific period time
Two main outline agreements are scheduling agreements and contracts
Most common Scheduling agreement is type DS. Special in automotive component
supplier industry BL or DEL
Are two types of contracts: value and quantity. Can cover both goods and services
Rental and maintenance contracts are frequently used in the service industry.
Maintenance agreements are signed for products that the customer uses over a long
period of time and which need to be serviced during that time

Scheduling agreements
Is an outline agreement between you and a sold to party that is valid for a certain period
of time. Contained fixed delivery dates and quantities. Once the agreement is due for
delivery, you can create the delivery as normal
If the quantity in the schedule line exceeds the target quantity, the system issues a
warning message

Quantity contracts
A contract is an outline agreement between your customer that is valid for a certain time
period. Does not contain any schedule line, delivery quantities or delivery dates. The
same functions are available in contracts as in orders. You can also agree on special
price agreements or delivery times.
The customer fulfils the contract with individual releases. Schedule lines are created in
the release order when its placed. The release order is then processed like a standard
order. Release orders are created with reference to a contract
You can release orders in the following ways:
Create with reference
In sales document menu, create with reference to contract
Assign an order item to a contract retrospectively
Use automatic system search for open outline agreements when you create an
order

Messages about open outline agreement

Can configure to automatically searches for any open outline agreements
Options for the search and how should react:
Blank: no checks
A/B: check at header/item level. Display first a dialog box and then a list of open
agreements according to customer and material
C/D: check at header/item level and copy if unique: if finds only one
E/F: check at header/item level and branch immediately to selection list.
Selection list
Value contracts. Is an outline agreement between you and your customer.
Can contain other agreements that are checked in the release orders:
Special price agreements Material restrictions
Customer restrictions

Valid materials
You can restrict materials that can be released in a value contract in the following ways:
Product hierarchy List of valid materials
Assortment modules for value contracts are maintained in the master data for products

Value contracts- releases

A release order releases a partial quantity of the agreed total value of goods or services
in a contract. A release order is a type of sales order
You can select items for all the valid materials using the item selection function.
You can create releases in any currency but the total value is updated in the currency of
the contract. You can define how the system responds when this value is exceeded.
You can assign an order to a contract later both at header and item level. In both cases
the system re- runs pricing automatically

Value contracts billing documents

You can either bill the value the contract directly or you can bill each release order
Billing a release order: you can use the standard order OR. Billing can be order
related or delivery related
Billing a value contract: order type WA. A billing plan allows you to bill the
contract for several dates and partial quantities at once

Controlling value contracts

There are two types of value contracts:
WK1 general value contract. Refer to different materials and services
WK2 material related value contract: for one material
You can maintain the value contract material in the item category. In the standard
system, value contracts (document determination procedure Y) use pricing procedure
WK0001 with condition type WK00

Partners authorized to release in contract

To meet this requirement, maintain the check partner field in document type
The partner determination procedure assigns the partners authorized to release against
the contract. If there a customer list, you can store the partners authorized to release
directly in the partner screen for the contract document

Contract data in sales documents

You can activate the contract data for sales document types:
Blank: no contract data
X contract data is permitted. Changes in header are not copied to items
Y contract data is permitted. Changes in header are copied to items

Determining dates
You define the date determination rules in customizing. If you assign a contract profile
to sales document type, the system automatically determines default values specific to
the contract
UNIT 18 MATERIAL DETERMINATION, LISTING AND
EXCLUSION

Material determination
Replace some products by others during the sales process
Provides you with a tool for automatically exchanging materials in the sales document
The condition technique provides you with greater flexibility in material determination
You can assign a substitution reason to every master record in material determination
You dont need a material master record for the material number that you are replacing
The system now continues processing with the substitute (availability, pricing, delivery,
billing)
The item data tab sales A contains information about the material that was originally
entered

Select products manually

You can use different materials numbers for the same product (different packaging)
The system displays the material quantities that can be confirmed on the customer
requested delivery date

Master data
Maintain the master records for material determination in the master data menu for SD
under Products.
When you process master records, you can: restrict the validity period of a record,
determine reasons for substitution, save one or more substitutes per master record

Automatic product selection (0004 and 0006), the system replaces the entered material
automatically if it is not available
The system may display the entered an substituted material as main and sub-items in the
sales order.
If there is not enough of this material, it fills the remaining quantity with the next
material
The partial confirmation of product selection allows to deal with shortfall cases by
passing the shortfall quantity on to materials planning
You can assign a material determination procedure to each sales document type.

Material listing and exclusion

Material listing
Your customer receives only specific materials. The material listing is controlled by the
condition technique
You define in the sales document type whether the system checks the material listing or
not

Material exclusion
The customer does not receive certain materials. The material exclusion is also
controlled by the condition technique.
UNIT 19 FREE GOODS

Exclusive and inclusive bonus quantities

Free goods can be part of the order quantity not included in the invoice. The ordered
goods and the free goods both evolve the same material. The quantity units of the free
goods and ordered goods must be the same.
Free goods can also take the form of extra goods are delivered free of charge and are not
included in the invoice

Free goods in the sales order

Both forms of free goods are handled in the same way in the sales order. Free goods are
automatically displayed as sub items
Item category determines how the item is controlled later in business process
You can also enter free goods manually by entering data in the higher level item and
item category fields (TANN)
The system does not refer to the goods master record
Re reads the free goods master record in the sales order if the quantities in the main item
change if the pricing date changes

Free goods master data

The condition technique is used for free goods
You can process different master data with the same key for inclusive and exclusive
bonus quantities at the same time

Free goods- calculation rule

The calculation rules are provided in the standard system:
Rule 1 prorated (162*(20/100))
Rule 2 related to units (100*/(20/100))
Rule 3 whole units (0 is not a complete unit of 100)
You can also define your own rules (VOFM)

Free goods analyses and accounting

Revenues, sales deductions and costs of free goods cab be transferred to accounting in
different ways: Main item/ sub item
Not influenced by free goods / pricing deactivated VPRS configured as cost
Not influenced by free goods / pricing activated for TANN with B. 100% disc
Cumulation of calculation price for lower level item. Cumulated calculation
price transferred as costs/ pricing deactivated

Condition technique
You can activate an analysis of the goods determination in the sales document. The
system the displays detailed information on how the free goods were determined
UNIT 20 SALES WORKSHOP

Sales to employees orders

You should only create orders with a net value. This prevents documents without items
or with free items from being created in the system
No individual customer master data for employees is maintained in the system.
Employee orders are processed using a colleting master record (one-time customer
account)

Sales to employees - delivery

The system automatically creates the delivery once the sales document has been saved
Picking is not necessary, as the employees can only buy goods which are available in
the shop

Sales to employees billing document

The system thus creates an order related billing document
In the financial accounting document, the billed amount is posted to a special cash sales
account

Bills of materials scenario

Several materials can often be sold together as sets or packages. Are stored as BOMs
One order can generate several purchase orders
An availability check is not necessary in the order because the components are ordered
directly from the distributor
All components should be listed in the invoice

Exploding BOMs in sales order

If there is a bill of material master record for the material, it can be exploded in the sales
document
The structure is exploded in the following order in the sales document:
The material that has a BOM is entered in the order. This is the main item
Item category of the main item is determined. This item category controls
whether and how the BOM is exploded
Exploded automatically. Components are then listed in the document as sub
items for the main item
System determines an item category for each sub item

Material determination scenario

Materials can be replaced automatically in sales documents
It uses condition technique. Can activate an analysis of the material determination in the
sales document (before entering the items)

Customizing
You should configure in customizing the reverse sequence as the system searches for the
valid material determination master records for sales orders
UNIT 21 OVERVIEW OF THE DELIVERY PROCESS

Delivery process as part of the logistics Execution process

Logistics Execution (LE):
Warehouse management (LE-WM) - MM
Shipping (LE-SHP) - SD
Transport (LE- TRA) SD
Logistics execution it is connected with production planning and control, materials
management and SD.

Logistics execution
Provides you with all necessary functions for mapping the execution of logistical
processes that are not industry specific
Involves goods receipt and goods issues processes. Its the link between procurement
and ditribution.
Both internally and externally produced material is put away and then removed from
stock again using warehouse management

Process overview
If deliveries are used, the warehouse management activities are completed before the
inventory management posting. The posting always refers to the delivery
The transfer orders in the document used to execute all goods movements in the
warehouse

Structure of the delivery document

Consists of a header and a number of items. The ship to party, shipping point, route are
unique for each outbound delivery

Application areas for the delivery

Complete shipping activities such as picking, packing and document printing (using
delivery document)

Shipping process
Deliveries describes only outbound goods movements. Shipping is also the name given
to the department responsible for the logistical process of delivery handling (picking,
packing, loading).
We refer to deliveries related to sales docs as outbound deliveries.

Difference between outbound delivery and shipment

Each outbound delivery starts at a shipping point, continues a route and has the ship to
party destination. These criteria are header fields in the outbound delivery
Deliver goods to several shipping points and ship into parties along a particular route.
Outbound deliveries are grouped together on the basis of user definable criteria in a
document called the shipment document
UNIT 22 BASIC CUSTOMIZING SETTINGS FOR THE
DELIVERY PROCESS
The delivery document is also the interface to inventory management and possibly
warehouse management
The plant is a production facility or a location that handles material stock. It could also
be a collection of several locations in one general vicinity with material stock, which are
known as storage locations. Stock is managed at storage location level
A plant is assigned to only one company code
Warehouse: in order to use efficiently you can use the following organizational units:
Warehouse number Staging area
Storage type Door
Storage section and picking area
Staging and door can be determined automatically at header level
Connection between warehouse number and plant/storage location
Several locations within a plant can refer to the same warehouse number
A shipping point is an independent organizational unit as a fixed location that process
and monitors outbound deliveries and goods issues
The responsible shipping point is determined in the order at item level
Several shipping points can be assigned to one plant
Another organizational unit is the loading point. Many can be assigned to a shipping
point, but only one shipping point can be assigned to a loading point

Controlling deliveries: Delivery type controls the entire delivery:

EL: inbound delivery LP delivery from project
LB: for subcontract order RE returns delivery
LF outbound delivery NL replenishment delivery
LO without reference

Delivery item categories: Controls texts, packing control, availability check, relevant for
pricing. If an order item category or the schedule line assigned to it is relevant for
delivery, the same item category is defined for the delivery process

Copying control: You can specify: which SD documents types can be copied to each
delivery types, which items categories are copied from reference documents
You can also specify: under what conditions data is copied from the order to the
delivery, under what conditions several orders can be combined in one delivery, which
data is to be transferred. Required shipping criteria: shipping point, route and ship to
party

Determining item categories in deliveries: Is not specified for order independent items,
without reference LO or outbound deliveries ex: EL
Determines an item category for the delivery according to the assignments specified in
customizing. Takes into account the delivery type and the item category group from
material master record. Usages: PACK (generating packing items), CHSP (batch split),
PSEL product selection), V (inbound deliveries for purchase orders)

You control order types by specifying: delivery type for the outbound, if the outbound is
created automatically. Physical deliveries using MM INV interface are possible if
schedule lines are used (schedule must be relevant for delivery)
UNIT 23 GOODS ISSUE PROCESS
The shipping process
Functions: monitoring deadlines, creation and processing of outbound deliveries,
monitoring of goods availability, monitoring the capacity in the warehouse, support
picking, packing of the delivery, processing goods issues

Shipping point determination: The responsible shipping point is determined for each
order item. Proposes one but can be change. Depends on the delivering plant, shipping
requirements, loading equipment
The shipping condition is proposed from the sales document type or from master record
form sold to party
An outbound delivery is always issued from one shipping point only. Can not be
changed in the delivery

Route determination Is carried out in the order item and depends on: country and
departure zone of shipping point, shipping condition, transportation group assigned to
the material, country and transportation zone of the ship to party
You can redetermine the route in the delivery

Backward scheduling Can determine the required material availability date base on the
delivery date requested by customer. Scheduling takes into account: transit time (from
the route), loading time (from shipping point), pick/pack time (from shipping point),
transportation planning lead time (to organize the shipment. Form the route)

Forward scheduling First the system performs backward scheduling in the order. If
results in the past, performs forward.
When you create an outbound delivery you can carry out forward scheduling again
You can specify for each delivery type whether rescheduling should take place

Precise (working times) and daily scheduling Can calculates and display results down
to minute. In daily days hous and minutes but only displays the resulting date
For each shipping point you can determine scheduling logic
The route is used to determine the transportation planning lead time. Daily scheduling
uses factory calendar of the shipping point
The route is also used to determine the transit time

Route schedules To organize outbound deliveries from a particular shipping point to

different ship to parties. You can pick up all the deliveries that belong to the same route
together
The route schedules generally contains: route, a day as departure date with departure
time, a list of ship to parties, an itinerary (optional)
You can use route schedules in sales orders, stock transfer orders and outbound
deliveries
A route schedule should be assigned for each shipping point, order type, purchasing
document type and delivery type

Creating and processing outbound deliveries

You can create outbound delivery manually (not for PO and request) with or without
reference to an order
If you use collective processing (delivery list) you can deliver goods for all types of
shipping documents
You can model the different business processes for deliveries by using delivery
scenarios
Delivery scenario models a business process for delivering the goods for orders that are
due to ship. Modelled using user roles (list profiles)

Determining the picking location If no storage location for picking is specified in the
order item, the system determines the storage location when it creates the outbound
delivery and copies into delivery item
The system determines the picking location based on a rule defined in the delivery type.
Rules
MALA: determined by shipping point, delivering plant and storage condition
RETA and MARE: in trade scenarios
The picking location search is activated for each delivery item category

Determination of door and staging area Can take place at the delivery header level,
depending on the goods recipient or the route schedule.
For each delivery type, you can specify the criteria used in the determination
Staging area determination can also take place at the delivery item level if storage
conditions (material master) are also taken into account
Can also use user exits at delivery header and item level

Changing and adding to the outbound delivery Info such as ship to party and shipping
point can no longer be changed once you create
Can add items that refers to other orders (delivery order function). Can also add items to
the outbound delivery without referring to an order

Output in shipping Is a communication tool that supports the exchange of information

between you and your partners
Can be sent from outbound delivery, group of deliveries, handling unit
You can make output determination dependent upon different criteria. Condition
technique provides you with flexible control options
Can be header or item output

Outbound delivering monitor Displays all deliveries that are still to be processed or that
have been processed
You can use the inbound delivery monitor to use and execute inbound delivery activities
in the same way

Picking outbound deliveries

Picking: Is the process of preparing goods for delivery to the customer with special
attention paid dates, quantity and quality
Can use WM/lean WN (transfer order) or via SD (picking order)
A setting in the delivery item category determines that is relevant for picking
Often, picking take places using a picking list
Using Lean Warehouse management means using a small part of the function provided
by warehouse management component
The prerequisite for posting goods issue is that picking relevant items are completely
picked
Picking process using warehouse management: To use WN (full or Lean) you can create
a transfer order. Transfer order is a document with which the goods movements within a
warehouse complex can be initiated or monitored. Also can print the TO
By confirming the transfer order you verify quantities removed from the warehouse
When you post goods issues completes the shipping process

Transfer order: Is an instruction to move materials from a source storage bin to a

destination storage bin without a warehouse complex.
Transport orders include the following information: material number, quantity to be
moved, source and destination storage bin

WM versus lean WM: If you have warehouse with random storage you need to use the
WM system with full functionality
Precise inventory management at the level of storage bin is required
Lean WM does not have it. Is more suitable for fixed bin warehouses
WM FULL functions: storage sections, reserve storage bins, replenishment, strategies to
pick

Modelling the warehouse structure in lean WM: You need at least one warehouse
number and at least one storage type from which picking takes place. Also need one
storage type in which goods are stored
Picking areas can be defined for each warehouse number and storage type
In addition to picking area, there are other organizational units in the warehouse: staging
areas and doors.
You can activate lean WM at warehouse number level
You can assign a warehouse number to a plant and storage type. In this way,
organizational units are linked to inventory management

Creating and printing transfer orders: it is possible create TO as follow on function from
the delivery, can also create TO explicitly (referencing an outbound delivery/ies)
The automatic/direct TO procedure is suitable if you want to have the transfer order
created automatically from each outbound delivery
Printing options: single, combined, pick list

Automatic/direct transfer orders: the combination of delivery type/shipping point or

delivery type is responsible for determining the output in the standard system
Depending on the send time of output type WMTA you can have different processing
types: automatic transfer order creation or direct transfer order creation

Collective processing in the outbound delivery monitor: To optimize the picking

process, you can also create a picking list from several outbound deliveries

Difference between picking using warehouse management

In picking differences between quantity removed and delivery may occur. But you only
post a good issue if the picking and delivery quantity are the same
You can copy the picking quantity as the delivery quantity and perform a partial
delivery or you can choose subsequent picking (you create a new TO for the difference)

Confirming TO: before goods issue is posted you must confirm the TO
UNIT 24 SPECIAL FUNCTIONS FOR PROCESSING
DELIVERIES

Batches
You can specify a batch in the relevant detail screen for materials handled in batches (if
a material is handled in batches is indicated in the material master storage 1 and
purchasing). When delivering a sales order this batch is copied to the outbound delivery.
You cannot change it here
If it is not specified is the sales order you can enter one in picking overview on the
outbound before goods are issued

Serial numbers
You can assign a serial number to each material. This allow to monitor goods movement
for individual materials
To use this enter serial number profiles in the master record for the relevant materials
Are usually specified in the delivery item. Can also be generated automatically

Pricing in the outbound delivery

Outbound delivery can contain shipping related conditions at header level, such as fright
costs (if you are not using transportation)
You can enter values manually or using pricing condition technique. Assign pricing
procedure to delivery type
Cannot transfer conditions from preceding documents.

Splitting an existing delivery

Can split into several smaller deliveries

Delivery interface- communication scenarios

Normally, electronic data interchange (EDI) messages are used for external
communication and application link enabling (ALE) are used for internal
communication
Delivery interface groups together all EDI and ALE messages that refers to delivery.
They are all based on the same IDOC: DELVRY02, 03

Log of incomplete items

When you call up the log of incomplete items the systems checks if the data in the
outbound delivery is complete
In customizing you can control which fields
UNIT 25 PACKING
Packing process
Packaging materials are used for packing or transporting goods
The store packing information for an outbound delivery in the system, you must specify
a packaging material
You must create material master records for the different packaging materials (type
VERP)

Handling unit
Selected items form an outbound delivery can be packed in a individual packing type
called a handling unit
Is assigned a unique sequential number form a specified number range
Handling unit header contains information about the packaging material used in packing

Packing functions
Packing is the process of assigning delivery items to packaging materials. This produces
handling units, which can then turn be packed in additional packing materials
This created new handling units. You can use several levels
At delivery item category you can define if is relevant for packing (allowed, not or
mandatory)
Packing status: partially packed or fully packed
Two output types for printing: packing list (delivery level) or shipping level (handling
unit level)

Packing in SD process
Packing function is available in: orders, inbound delivery, outbound, shipment
document
You can change packing in outbound as long as you have not posted the goods issues
Packing in the outbound delivery is copied to the shipment

Packing material types and material grouping for packaging materials

Similar packaging materials are grouped in packaging material types
Material grouping for packaging materials is used to group material that have similar
packing requirements

Proposed packaging materials

You can display the allowed packaging materials for a material to be packed. Are
proposed from customizing (allowed packaging material for material group)

Packing instructions
Consist of: packing materials, materials to be packed, text items, rules rounding
Can be used as packing proposals for online processing or as packing rules for
automatic packing. Is carried out using condition technique

Packing station: Deliveries and handling units can be packed using a packing station
Can connect a keyboard scanner and scales to the packing station computer

Subsequent processing for packaging materials

May need manage stock for packaging materials. To enable this the system can generate
a separate item in the outbound delivery for each packaging material
Handling unit management in shipping
A handling unit is physical combination of materials consisting of:
Packaging materials and goods
Each handling unit has a unique identification number that enables you to read related
information: contents, weight, volume, measurements, status, history

What are the advantages of handling units?

Simpler processing of the material flow (using an id, not material and quantity)
Once has been created can be reused

Are involved in inventory, production, quality and warehouse management, SD

Goods issues process using handling units

If materials in a storage location managed using handling units are to be shipped, then
the system determines which handling units are to be shipped when the transfer order
for picking is created
Picking is carried out based on the handling units. If you pick up complete handling
units or partial quantities, which creates new handling units
Goods issue posting is carried out for the entire shipment

You must maintain customizing: basic functions, packaging material types, MM,
delivery, external ID
The most important setting are: you must define at least one internal number range for
handling units, define packaging material types, decide which storage locations are to be
managed using handling units, the packing control for the delivery item categories must
permit packing
UNIT 26 GOODS ISSUE

Posting goods issue for an outbound delivery completes shipping activities

You can post the goods when transfer order is confirmed
Goods issue applies to the entire outbound delivery

Effects of goods issue posting

After this, there is limited scope for changing the delivery.
Reduces inventory stock, post the value change to accounts in inventory, reduces
delivery requirements, stored in document flow, create a work list for billing

Cancelling goods issue

The system copies the quantities and values form the original goods issue document and
carries out an inventory posting based on these quantities and values reversed sign
Affects the entire outbound delivery
Status is reseted
Compromises two steps if has been billed. First, cancel the billing document, and then
cancel goods issue

QM in shipping
Quality management component supports sales and distribution with quality inspections
for goods issues
Quality management view of material master
Where the outbound delivery is created, QM automatically creates an inspection lot for
the delivery items that are relevant for inspection
The usage decision represents the competition of a QM inspection
You initiate printing of a certificate of quality form output control of the outbound
delivery at item level

Proof of delivery
Is essentially designed to support the process of creating an invoice once the customer
has confirmed the arrival of the goods
After receiving the goods, the ship to party transfers the proofs of delivery by Idoc and
confirms the quantities for the entire delivery
Verification and confirmation are automated using Idoc
If differences are reported the delivery cannot automatically be confirmed
The system creates the billing document based on the correct (verified) quantity.
You can define wich item categories are relevant for POB process. Also need define
reasons for deviation and in customer master specify POB relevance