1. Pricing Procedure In SD
2. Account Determination
3. ASAP Methodology
4. Customer Order Process
5. Rush Order Process
6. Cash sales Process
7. Make-to-Order process
8. Contract Process
9. Text determination
10. Inter-Company billing procedure
11. ATP & Transfer of Requirement Process
12. Consignment process
13. Explain how SAP handles export orders
1. Pricing Procedure In SD
In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Channel + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master (Sales and Distribution view) . Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing, system will through an error message.
In SD, the steps to configure Pricing procedure are as under:
Condition table: If existing condition table meets the requirement, we need not create a new condition table. Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG -
> Sales & Distribution -> Basic Function - > Pricing Control -> Condition Table (select the required fields combination, which will store condition record).
Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence. Considering the requirement for new sequence, the configuration will be done in spro as follows: IMG -
> Sales & Distribution -> Basic Function - > Pricing Control -> Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to access sequence.
Condition Type: If existing condition type meets the requirement, we need not create a new condition type. Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG -
> Sales & Distribution -> Basic Function - > Pricing Control -> Condition Type. It is always recommended to copy an existing similar condition type & make the neccessary changes. Here we assign Access sequence to Condition type.
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in spro as follows: IMG -
> Sales & Distribution -> Basic Function - > Pricing Control -> Pricing Procedure –> Maintain Pricing Procedure.
b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows: IMG -
> Sales & Distribution -> Basic Function - > Pricing Control -> Pricing Procedure –> Determine Pricing Procedure.
5. Condition record: Condition record is a master data, which is required to be maintained by Core team / person responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT, LSMW, etc.
It is assumed that document pricing procedure, customer pricing procedure , … are in place.
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2. Account Determination
To resolve the error, you can analyze account determination in the billing document. Process:
Goto T.Code: VF02 & Enter Invoice number
Next (On the top most strip) goto Environment
Next (Select Environment) go to Account determination
Next (In Account Determination) select Revenue Account Determination (first option)
This will list all the condition types in the Billing document & analyze each condition & check for which G/L accounts is not determined.
1. VKOA not maintained for required combination
Solution: Maintain the combination in VKOA.
2. Account Assignment of Customer / material not maintained in Customer / Material Master (If maintained in combination in VKOA).
Option 1 (Standard solution):
step 1: Cancel Billing Document -
> Reverse PGI –> cancel Delivery -> Cancel Sales Order
step 2: Maintain Customer master / Material Master correctly.
step 3: Recreate sales Order -
> Delivery –> PGI -> Invoicing.
Force the Account Assignment Group of Customer / Material through Debug in change mode of Billing document, which will release Billing Document to Accounting.
3. Account Key not maintained in Pricing Procedure:
Impact: This may create accounting document, but if condition type, which are to be posted to account, but do not have account key maintained in pricing procedure, it will not be post the relevant condition type to G/L account.
From FI Side, you require to check that all the G/L account has been maintained through T.Code: FS00. G/L account being Master data has to be created in each client ot uploaded through LSMW / SCATT / BDC.
In Billing Document in change mode (in the first screen where we enter Billing Document number), on the top most left hand corner, take a dropdown on Billing Document & select Release to accounting. Here you can get the under mentioned possible message:
1. G/L account not found
2. Cost Element not maintained for G/L account.
In both the above cases, FI consultant requires to take corrective action.
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3. ASAP Methodology
Phase 1: Project Preparation – The purpose of this phase is to provide initial planning and preparation for your SAP project.
Phase 2: Business Blueprint – The purpose of this phase is to achieve a common understanding of how the company intends to run its business within the SAP System. The result is the Business Blueprint, a detailed documentation of the results gathered during requirements workshops. The Business Blueprint document represents the business process requirements of the company. It is the agreed statement of how the company intends to run its business within the SAP System.
Phase 3: Realization – The purpose of this phase is to implement all the business process requirements based on the Business Blueprint. The system configuration methodology is provided in two work packages: Baseline (major scope); and Final configuration (remaining scope).
Phase 4: Final Preparation – The purpose of this phase is to complete the final preparation (including testing, end user training, system management and cutover activities) to finalize your readiness to go live. The Final Preparation phase also serves to resolve all critical open issues. On successful completion of this phase, you are ready to run your business in your live SAP System.
Phase 5: Go Live & Support – The purpose of this phase is to move from a project-oriented, pre-production environment to live production operation.
Some additional Infomation on ASAP methodology:
Phase 1 - Project Preparation
Change Charter – Goals and objectives of Organizational Changen Management
Project Plan – This is a first cut focusing on milestones andn Work Packages; details to come.
Scope – Sets the initial definition of then project; input from sales cycle.
Project Team Organization – Sets the whon of the project: Standards & Procedures – Sets the why and how of the project.
Phase 2 - Business Blueprint – Requirements reviewed for each SAP Reference Structure item and defined using CI Templates (in the Q&Adb). Business Blueprint – This is the output of the Q&Adb and is the key document for Phase 3.
Phase 3 - Realization – Master Lists – Define business scenarios and R/3 transactions to be realized in the system. BPP – Business Process Procedures representing R/3 transactions; used for unit testing & documentation. Planning – Defines how the configuration will be done and how it will be tested. Development Programs – Provides details of the external programming requirements. EU Training Material – End User training material and process documentation.
Phase 4 - Final Preparation Stress & Volume Tests – Plans for confirming the production hardware’s capabilities
Cutover Plan – The details of how to move to the production environment and go live
Conduct End User Training – Delivery of the necessary levels of R/3 End User training prior to going live
Phase 5 - Go Live & Support: Ensuring system performance through SAP monitoring and feedback.
4.Customer Order Process:
A customer inquires about the goods or services it intends to purchase from the Supplying Company by raising a RFQ (Request for Quotation).On receipt of RFQ the supplying company submits the quotation. If all the terms and conditions are agreed upon by both the companies, the ordering company would raise Purchase Order to the supplying plant based on which a Sales Order is created by the Supplying Plant.
Once the order is ready for delivery, the goods are shipped to the ordering company(Ship TO Party), and invoice is sent to bill to party.
On receiving of the goods the customer would do the quality check and if found ok would accept them. The payer would pay the invoiced amount to the supplying company.
raises a Purchase Order for the goods or services which it intends to purchase from the Supplying Company. On receipt of the order the Supplying company sends the PO acknowledgement receipt. Based on the PO the supplying company creates a Sales Order
5. Rush Order:
In a rush order, the customer picks up the goods immediately, or you deliver them on the same day as when the order was created. When you save the rush order, a delivery is automatically created in the standard system. Billing the rush order takes place as normal, after the delivery.In the standard system, sales document type RO is saved for rush orders with immediate delivery type LF. Once the goods have been removed from storage, the goods are picked, and goods issue is posted.
Once the billing documents are created (for example, in collective processing), invoice papers are printed and sent to the customer.
IN -IMG-SD-SALES-SALES DOCUMENT HEADER-ORDER TYPE RO/CS U CAN SET A FOR IMMEDIATE DELIVERY IN SHIPPING WHICH CREATES DELIVERY AUTOMATICALLY WHEN U SAVE SALES ORDER
6. Cash sales:
In cash sales, you can process an order for when the customer orders the goods, picks them up, and pays for them immediately. The delivery is processed at the same time as when the order is created and a cash invoice is printed immediately: billing is therefore related to the order, unlike rush and standard orders. Receivables are not created for the customer, as they are for rush and standard orders because the amount in the invoice is immediately posted to a cash account.In the standard system, sales document type BV (CS) is saved for cash sales with immediate delivery type BV.
When the sales employee creates a cash sale, the system automatically proposes the current date as the date for delivery and billing. Once the order has been posted, a delivery with type BV is created immediately in the background and the system prints a document that is used as an invoice for the customer.
The invoice papers are controlled with output type RD03, contained in the output determination procedure for order type CS
1.Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.
2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.
3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.
(a) Make to order using sales order
(b) Make to order using project system (not relevant for SD application)
4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.
5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things
the strategy group (MRP 3) in MMR
the MRP group (MRP1) in MMR
the item category and MRP type (MRP 1)
6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.
9. Text Determination
In Sales process (quotation, contracts, sales order for example) , sometimes we need to maintain instructions or informations about the process, like, terms of payment, warranties, header notes, delivery instructions, shipping instructions (for example).
In the subsequent documents, like, delivery, billing, these instructions need to copied from source document, or new texts needed to be determined in the subsequent documents.
Control the changes of these texts, the source of these texts, if the text is obligatory, these functions are attributes of Text Determination.
The Text determination uses the Condition Technique to find the texts.