Sales & Distribution (SD)

Sales and Distribution (SD) Topics:

• Condition Exclusion (More details) NEW

• Letter of credit process in Export (More details) NEW
• SD Questionnaire related to:

Enterprise Structure Master data Sales

Shipping Pricing Billing
Experience from
Cross-application customization Solution Manager
Implementation
• Configuration steps for:
o Automatic Picking (More details)
o Automatic Packaging (More details)
o Automatic batch determination in delivery (More details)
• Automatic Printing of a Sales Order Document immediately after saving the
document in VA01 transaction (More details)
• Material Listing and Exclusion (More details)
• Business Process Procedure for standard third party sales (More details)
• Output determination configuration (More details)
• Scheduling agreement to invoice cycle (More details)
• Special Processing Indicator (More details)
• Assigning different customer number ranges for different customer account
groups (More details)
• Variant Configuration for a BOM (More details)
• Understanding "Material Determination" (More details)
• MRP: PR to PO conversion (More details)
• Maintaining Shipping instructions (More details)
• Temporarily extending/reducing the credit limit (More details)
• Differences between Credit Note, Credit Memo and Credit for returns (More
details)
• Credit Card payment configuration for the orders (More details)
• Difference between CASH SALES and RUSH ORDER (More details)
• Order to Cash Cycle (More details)
• Enterprise Structure Configuration (More details)
• Configuration of Pricing Procedure (More details)
• Maintaining Multi-level packaging in the delivery (More details)
• Configuring "Availability Check" (More details)
• SD Terms "Sales Organization", "Distribution Channel", "Sales Office", "Sales
area", "Division" and "Sales Group" (More details)
 Condition Exclusion
By Kanhu Ranjan Padhi, SAP Labs

Condition exclusion let you determine which condition type should be used in a given situation.

User can navigate to Condition Exclusion in below path:

IMG (Execute Transaction SPRO) -> Sales and Distribution -> Basic Functions -> Pricing Control
-> Condition Exclusion

User can maintain Condition exclusion in two ways

1. Condition Exclusion for Groups of Condition

2. Condition Exclusion for Condition Types And Records

Condition Exclusion for Groups of Condition:

In this you can create your own group and maintain conditions in the created group. Condition to
be compared is first placed in an exclusion group.

Step 1: Define Condition Exclusion Groups

Create two exclusion groups ZXX1 and ZXXX as below:
Step 2: Assign Condition types to the Exclusion Groups
Click on the ‘New Entries’.

Enter ZXX1 in the Exclusion group and assign condition type ZDIT.

Enter ZXXX in the Exclusion group and assign condition type K007.
Step 3: Maintain condition exclusion for pricing procedures

Select the Pricing procedure and double click on the ‘Exclusion group’ on the left side to maintain
the entries.
Note the condition exclusion group which is maintained as ‘D’ here.

There are 7 condition exclusion groups available as below:

A: Best condition between condition types

B: Best condition within the condition type

C: Best condition between two exclusion groups

D: Exclusive
E: Least favorable within the condition type

F: Least favorable between the two exclusion groups

L: Least favorable between condition types

When you set up the exclusion group as above, when you create an order in VA01 the condition
K007 gets deactivated when user enters value for condition ZDIT.
Condition Exclusion for Condition types and Records:

This can be set in a condition record or condition type.

Requirements are maintained in the pricing procedure and allow you to specify if a condition is to
be used in certain situation.

See the below Example:

1. Maintain the indicators as below :

2. Pricing in the order looks as below before maintaining the condition Exclusion indicator in the
condition record for PR00.
3. Maintain condition exclusion indicator in the condition record for PR00 in transaction VK12 for
the same customer, material, sales organization, and division and distribution channel.
4. Notice the Sales Order now for the same Sales organization, Distribution channel, Division,
Customer and Material:
All the conditions were void when PROO is used in the order. This is actually read from
the requirement which is maintained at the Pricing Procedure level. For PR00
requirement 2 is maintained in the pricing procedure.

Letter of credit process in Export

By Anil Kumar.B, SAT - Infotech
Purpose:

Financial document should be generated for attaching the Letter of Credit (LC) with the sales
order. This creates a document in Finance but does not do any postings in the ledger. This is
purely used for the purpose of tracking and monitoring the letter of credit and does not affect
the payments / collections. This is attached to the sales order to ensure that the sales order
value does not go above the LC value.

Before doing the LETTER OF CREDIT, Maintain the Customer payment guarantee procedure
in Customer Master Data (XD02) as 0001 and Terms of Payment.

And material should be without MRP View.

Then go for the easy access

TRANSACTION CODE: VX11N

EASY ACCESS PATH: SAP Easy access >> Logistics >> Sales and Distribution >> Foreign
Trade/ Customs >> Payment guarantee >> Documentary Payment >> Financial Document >>
Create.
START THE TRANSACTION USING THE MENU PATH OR T- CODE

Click on And then you will be getting this screen

Maintain the fields as:

1. Financial document category: U Irrevocable Confirmed

2. Financial document type: 01

3. Company Code: 1000

Press 'ENTER' Or Click on to create FINANCIAL DOCUMENT

YOU WILL BE GETTING THIS SCREEN

ENTER THE DETAILS: In Partner Data Tab & General Data

Customer: 11157

Ship-to party: 11157

Bank Country: LK (Sri Lanka) (Identifies the country in which the bank is located)
Bank Key: 12311 (Bank of Sri Lanka) (In this field, you specify the bank key under which bank
data from the respective country is stored)

Ext. Financial Document number: 12345 (Indicates the number of a financial document which
is generally assigned by the bank)

Financial doc. Value: 20,375.00 (this is imp) (Value of the financial document)

Letter.-of-credit currency: USD

Allowed overdraft %: 10% (Allowed overdraft percentage)

Terms of Payment: Z001 (Key for defining payment terms composed of cash discount
percentages and payment periods)

PRESS ENTER

Click on Dates / Delivery dates Tab:

DATE/DELIVERY TAB

Enter Request date: 26.07.2010 (Identifies the date on which the financial document has been
requested)

Date of receipt: 26.07.2010 (Identifies the date on which the financial document has been
received)

Latest shipping date: 28.07.2010 (Identifies the latest possible shipping date)

Validity end date: 21.09.2010 (Identifies the validity end date of a financial document)

Opening date: 22.06.2010 (Identifies the date on which the financial document has been
opened. Bank)

Last date ocean BOL: 06.09.2010 (Identifies the latest possible date of the ocean bill of lading)
Presentation date: 15.08.2010 (Identifies the date on which the documents must be presented to
the bank)

Number of days: 120 Days (If the goods are delivered before the planned deadline, there is a
time limit within which the documents have to be presented at the bank. If this time limit is
exceeded, the financial document expires although the date specified in the Presentation Date
field has not been reached)

Incoterms: EXW – RAJAHMUNDRY & PRESS ENTER

Click on DOCUMENTS Tab

DOCUMENTS TAB:

List of documents configured will be displayed. Enter the number of originals & copies sent and
mark the status as 'Completed'.

Click on BANK Tab

BANKS & TEXT TAB

No mandatory information is required

The details which you maintained in the GENERAL DATA Tab all the details are automatically
come to here. If you want the other bank details like Negation bank or conformation bank or
notifying banks, then click on it and the click on BANK DATA button and maintain all required
fields data.

If you want to maintain any text times then you can writ it in the TEXT Tab

Then click on STATUS Tab

This Status Place a Vital role during Sale Order creation as well as Letter Of credit creation

1. Maintain the Date and time of creation and if you want you can maintain the description

2. To use the Financial document in Sales order Click on D Switch

Document is available and can

be used.

3. Then maintain date and time in the D field

Then Click on to check the document.

You have to get the STATUS as GREEN color

Then Save the Document.

Then Press Enter

And Click on

You will be getting the Financial Document number at the bottom

Then maintain this financial document number in the Sales order >> Header Data >> Billing
document Tab >> financial doc Number: 41

And maintain the % of Depreciation:

Then click on the Document.

Configuration steps for automatic picking
By Bageerath Cheryala, Answerthink

Automatic picking happens with an output type “WMTA” - Automatic TA, we need to maintain an
output condition record using t code: VV21.

Configuration steps for automatic picking....

1. WM should be active at delivery item level, t code: OVLP. Check “relevant for picking”.

2. To trigger WM transfer order in the delivery document we need one more config step in the
IMG, for this go to SPRO  Enterprise Structure  Assignment  Logistics Execution 
Assign warehouse number to plant/storage location.
3. Along with these settings we also need WM consultants to configure the WM settings. This
includes the settings related to lean WM or central WM.

4. Number range for pick order should be maintained, for this go to  SPRO  Logistics
Execution  Shipping  Picking  Define number ranges for pick order.

5. Assign the output procedure for the delivery type, t code: v/71, or SPRO  Logistics
Execution  Shipping  Basic shipping functions  Output control  output determination
 maintain output determination for outbound deliveries  Assign output determination
procedures.

6. During maintaining a condition record for WMTA output type you can have any key
combination as per the business requirement. In this system I have selected a key
combination of Delivery type and shipping conditions.
Maintain the medium as “8 – Special function” and dispatch time as “4 – Send immediately”

This concludes the configuration and master data maintenance for automatic picking.

Configuration steps for automatic packaging

By Bageerath Cheryala, Answerthink

Automatic packing has some typical configuration and master data settings, see below:

1. Maintain number ranges for handling units, menu path SPRO  Logistics Execution 
Shipping  Packing  Define number ranges for Handling Units.

2. Delivery type should be activated with Automatic Packing, menu path SPRO  Logistics
Execution  shipping  Deliveries  define delivery types
3. Define packaging material types Menu Path SPRO  Logistics Execution  Shipping 
Packing  Define packaging material types.
4. Define material groups for packaging materials, menu path: SPRO  Logistics Execution 
Shipping  Packing  Define material groups for packaging materials.

5. Define allowed packaging materials, menu path: SPRO  Logistics Execution  Shipping
 Packing  Define allowed packaging materials.

Along with these basic settings we also need to configure in handling unit management
module for automatic packing.

6. Maintain packing transaction profile, menu path: SPRO  Logistics General  Handling
Units Management  Automatic Packing  Maintain packing transaction profile. “T code:
OVHU2”

Select the transaction profile “0002 – Outbound Delivery” and go for details. Check “start
automatically” in the details screen as shown below.
 Also maintain the determination procedure for packing instructions as shown in the above
screen.

7. Determination procedure for Packing Instructions. Menu path SPRO  Logistics General 
Handling Units Management  Automatic Packing  determination of packing instructions.

Handling units work based on the condition technique, configure all necessary config settings
for condition technique to work appropriately.

I used the procedure as “ZAU001 - Auto Pack Ref Material” and determination type as
“ZSHP - Auto Packing Ref Mat”

Access sequence that I used is ZSHP with a condition table “499 - Reference material for
materials packed in same way”

8. Maintain the master data for the packing instructions “t code: POP1”, menu path: SAP Easy
Access  Logistics  Central functions  Handling Unit Management  Master data 
Packing Instructions  Create/change/display.

9. Further maintain packing instruction determination record. “T code: POF1”, Menu path: SAP
Easy Access  Logistics  Central functions  Handling Unit Management  Master data
 packing instruction determination record  create/change/display.

10. Final master data settings need to be done in material master data under basic data tab and
plant/general data tab for finished goods and also for packaging materials.

These are the 10 important steps to configure automatic packing during delivery
processing.
Configuration steps for automatic Batch determination
in delivery
By Bageerath Cheryala, Answerthink

To trigger the batch number in the delivery document automatically we need to do necessary
configuration and master data maintenance.

1. Batch management works on condition technique, menu path: SPRO  Logistics

General  Batch management  Batch determination and Batch check.

Here we need to create new strategy types if necessary and access sequence if
necessary, and also batch search procedure if necessary

2. Allocate the SD batch search procedure using the menu path: SPRO  Logistics
General  Batch management  Batch determination and Batch check  Batch Search
Procedure Allocation and check activation  Allocate SD search procedure/Activate
check.
3. Activate Automatic Batch Determination in SD using menu path: SPRO  Logistics
General  Batch management  Batch determination and Batch check  Activate
Automatic Batch Determination in SD. Here we have two options, 1. To activate batch
determination for sales order item and 2. is to activate batch determination for delivery
item, upon the requirement we can activate at both the places,

But in general batch are activated only at delivery item level.

4. If we need shelf life expiration date for the batch we need to create a class using “t code:
CL01”, type in a name for the class and select the class type as “023 – Batch” and
maintain the characteristics as LOBM_VFDAT and LOBM_HSDAT (this for production).

5. Once the class is created go to material master under classification tab and maintain the
class created.
6. One more important setting in the material master is to check the batch management.
This need to be done before you process the material for orders.

7. Go to create batches for materials using t code: MSC1N or menu path: SAP Easy Access
 Logistics  Central Functions  Batch Management  Batch 
Create/change/display.
 You can create new batches for the materials and also maintain the Shelf life expiration
date (SLED) in the batch master.

8. so as to determine the batch automatically we need to maintain a condition record for

batch search strategy type using t code: VCH1 or menu path: SAP Easy Access 
Logistics  Central Functions  Batch Management  Batch Determination  Batch
Search Strategy  for sales and distribution  create/change/display.

During the maintenance, maintain the class also in the condition record.

These steps will automatically trigger batch management during delivery processing.
System will allot the batch automatically upon the availability of the stock in the batch.