Table of Contents
Chapter 1 Introduction to Sales and Distribution 1
Introduction to SAP 2
First Steps in SAP 3
Easy Access Menu 3
The Customizing Menu 4
The Basic Sales Cycle 6
Getting Help 14
Database Tables 15
Data Browser 16
ABAP Dictionary 21
Managing Customization Changes 21
The System Landscape 22
Transport Request 22
Summary 25
Chapter 2 Enterprise Structure 27
Overview 28
Setting Up the Enterprise Structure 29
Setting Up the Sales Organization 30
Defining a Sales Organization 31
Defining a Sales Organization Using the Copy Method 35
Assigning a Sales Organization to a Company Code 37
Configuring a Distribution Channel 39
Defining a Distribution Channel 40
Assigning a Distribution Channel to a Sales Organization 41
Configuring a Division 42
Defining a Division 43
Assigning a Division to a Sales Organization 44
Setting Up a Sales Area 45
Defining a Common Distribution Channel and Common Division 47
Setting Up a Sales Office 48
Setting Up a Sales Group 51
Configuring Plants 53
Assigning the Sales Organization and Distribution Channels to Plants 54
Setting Up a Storage Location 56
Setting Up a Shipping Point 58
Setting Up a Transportation Planning Point 62
Setting Up a Factory Calendar 63
Running a Consistency Check 65
Summary 67
Chapter 3 Master Data in SD 69
Customer Master 70
Common Terms in Customer Master Data 71
Creating Customer Master Data 72
Maintaining Customer Master Records 75
Customizing Customer Master Data 76
Customer Hierarchy 85
Creating a Customer Hierarchy 85
Customizing a Customer Hierarchy 88
Material Master 91
Common Terms in Material Master Data 91
Creating Material Master Data 91
Maintaining Material Master Records 96
Customizing Material Master Data 97
Product Hierarchy 99
Maintaining a Product Hierarchy 100
Customizing a Product Hierarchy 100
Summary 101
Chapter 4 Partner, Text, and Output Determination 103
Partner Determination 104
Deciding the Scope of Customization 105
Customizing Partner Determination 107
Text Determination 119
Maintaining Text in Customer Master Records 120
Setting Up Text Determination in SD 121
Output Determination 133
Deciding the Scope of Customization 134
Setting Up Output Determination for Sales Documents 135
Summary 153
Chapter 5 Pricing and Tax Determination 155
Pricing 156
Deciding the Scope of Customization 158
Configure Pricing 159
Maintaining Price Records 181
Other Key Settings in Pricing 183
Pricing Scenarios and Notes 189
Tax Determination 198
Setting Up the Tax Determination 199
Summary 206
Chapter 6 Availability Check, Transfer of Requirements, and Backorders 207
Meaning and Relationship 208
Types of Availability Check 209
How the Availability Check Process Works . 211
Customizing the Availability Check and Transfer of Requirements . 216
Step 1: Activate Transfer of Requirements and Availability Check at Requirement Class Level 217
Step 2: Define Requirement Type and Assign a Requirement Class to a Requirement Type 218
Step 3: Set Up Determination Rule for TOR . 219
Step 4: Activate Transfer of Requirement and Availability Check at Schedule Line Category Level 221
Step 5: Define Checking Group 222
Step 6: Define Scope of Availability Check . 226
Further Fine-Tuning in Customizing . 228
Working with the Availability Check 235
Availability Check in Sales Order . 236
Availability Check in Shipping 240
Backorder Processing 240
Summary 246
Chapter 7 Sales 247
Sales Documents 248
Structure of a Sales Document 249
Origin of Data in a Sales Document 250
Customizing Sales Documents 251
Defining Sales Document Types 251
Defining Item Categories 264
Setting Up an Item Category Determination 271
Defining Schedule Line Categories 274
Setting Up a Schedule Line Category Determination 276
Setting Up Copy Controls . 277
Common Sales Document Customizations 284
Allowable Sales Doc by Sales Area . 284
Converting the Language for Each Sales Document Type 287
Defining Purchase Order Types . 287
Maintaining Order Reasons 288
Customizing Order Blocks 289
Reasons for Item Rejections . 290
Incompletion Procedure . 291
Delivery Blocks 298
Types of Sales Documents 300
Inquiries and Quotations 300
Sales Returns 302
Debit and Credit Notes 302
Invoice Corrections 303
Free-of-Charge Delivery and Subsequent Free-of-Charge Delivery 304
Cash Sales . 305
Rush Orders . 307
Consignment Processing 308
Third-Party Order Processing 309
Sales Contracts 312
Common Customizations in Sales Contracts . 315
Quantity Contracts . 319
Service and Maintenance Contracts . 320
Summary 322
Chapter 8 Shipping and Transportation 323
The Shipping Process . 324
Delivery Creation 325
Picking . 338
Packing 343
Transportation . 350
Maintaining Routes 351
The Shipment Process . 360
Goods Issue 368
System Modifications in Deliveries . 369
Summary 370
Chapter 9 Billing 371
Billing Process . 372
Billing Document Creation . 372
Some Important Billing Types . 374
Customizing Billing Documents 377
Billing Schedule 394
Billing Plans 395
Rebates 403
The Rebate Process 403
Rebate Configuration 408
Payment Card Interface . 416
The Payment Card Process . 417
Payment Card Configuration . 419
Summary 427
Chapter 10 Account Assignment and Revenue Recognition 429
Account Assignment 430
Set Up Account Assignment . 430
Revenue Recognition . 440
Revenue Recognition Process . 441
Set Up Revenue Recognition 445
Summary 451
Chapter 11 Credit Management 453
Introducing Credit Management in SAP 454
Setting Up Credit Masters . 456
Processing the Credit-Blocked Documents 457
Customizing Credit Management . 460
Defining a Credit Control Area 460
Assigning the Credit Control Area to a Company Code and Sales Area 463
Defining a Permitted Credit Control Area for a Company Code . 466
Defining Risk Categories . 466
Defining Credit Groups . 468
Assigning Credit Groups to Sales Documents and Delivery Documents . 469
Determining Active Receivables per Item Category . 470
Setting Up Credit Checks 471
Summary 481
Chapter 12 Material Determination, Listing, Exclusion, and Proposal 483
Material Determination . 484
Maintaining Material Determination Records . 485
Deciding the Scope of Customization 488
Customizing the Material Determination 489
Automatic Product Proposal 496
Material Listing and Exclusion . 496
Customizing the Material Listing/Exclusion . 498
Handling the Material Listing/Exclusion in Deliveries . 503
Maintaining the Material Listing Master Records 504
Customer–Material Info Records . 505
Creating the Customer–Material Info Record . 505
Creating Orders Using the Customer Material Number . 509
Dependencies Between Material Functionalities 510
Item Proposal 510
Creating an Item Proposal Record 512
Seeing Item Proposals in Action . 514
Seeing Customer-Specific Item Proposals in Action . 515
Customizing an Item Proposal 516
Summary 517
Chapter 13 Serial Numbers and Batch Management 519
Serial Numbers 520
Controlling Serial Number Management 521
Customizing Serial Number Management 523
Maintaining Serial Numbers Master Record . 526
Batch Management 529
Understanding Batch Levels 530
Maintaining Batch Master Records . 532
Customizing Batch Management 536
Preliminary Setup and Activation . 536
Batch Number Ranges . 538
Batch Determination 539
Batch Determination in Action 546
Summary 550
Chapter 14 Advanced Techniques 551
Enhancement Packages 552
Introduction to Enhancement Packages . 552
Implementation Process . 553
Switch Framework 554
Important Tools and Techniques . 557
QuickViewer . 557
SAP Query 562
Mass Maintenance 570
Logistics Information System 576
EDI/ALE/IDoc 588
Custom Enhancements in SAP 592
Summary 595
Transaction Codes 598
Database Tables 619
Recommended Web Resources 624
Appendix Transaction Codes and Database Tables 597
Index 625
This book provides a deep, working understanding of the essential concepts and customization settings related to the SAP Sales and Distribution (SD) application. SD is one of the most popular modules of the SAP ERP software and indeed the most interesting one to implement. Over the years, we have worked on a variety of projects ranging from global implementation, support, upgrades, acquisition and mergers, rollouts, and integration. We’ve had the opportunity to study the business requirements of different industries and the best practices in customizing SAP to meet different challenges. Our goal was to bring the knowledge that we acquired during those projects to you
through this book. Who Should Read This Book As the title implies, this book is intended for people who want to learn how to configure the SAP Sales and Distribution application. Whether you are a beginner who wants to make career in SAP as a SAP SD consultant, a business analyst from the IT/IS extended team of your organization, a member of the project implementation team responsible for implementing SD, a production support team member responsible
for supporting the Sales and Distribution module after implementation, an experienced consultant from another SAP module who wants to learn SAP SD, or an experienced SAP SD consultant who wants to learn what’s new in ECC 6 or how to handle some other functionality, you will find valuable information in this book related to customizing SAP SD.
If you are new to SAP, the learning curve can be steep. In this book, we tried to reduce that learning curve by providing easy-to-follow step-by-step instructions and case studies from a fictitious company called Galaxy Musical Instruments Inc.
How This Book Is Organized ?
You can use this book in several ways. The most straightforward way is to start at the beginning and proceed chapter by chapter. We have logically ordered the chapters according to the processes in a standard sales cycle. Each topic covers the prerequisite configurations before discussing how to configure a new submodule. We start with the basic concepts and travel all the way through to some very advanced configuration topics and techniques by the end of the book. If you already have configuration experience, you can skip around from chapter to chapter and follow the
step-by-step instructions for a topic of interest in its individual chapter. How Is This Book Different? This book is different from others on the market in the following ways: The book covers the functionality offered by SAP i ff n the latest version: ECC 6.0.
ff It provides an overview of enhancement packages, which are the SAP road maps for delivering innovations in the coming years. ff It illustrates all the concepts with a real-life case study that runs through all the chapters of the book. This provides a cohesive picture of how a real-life organization can leverage SD to meet its requirements.
ff It contains important tips, useful notes, and helpful links to other resources, such as SAP Service Marketplace (OSS) notes, where applicable.
What’s Inside ?
Here is a glance at what’s in each chapter:
Chapter 1: Introduction to Sales and Distribution Gives you a brief overview of the SAP SD application and familiarizes you with the bare-minimum basics that you need to know before you step up to the next chapters.
Chapter 2: Enterprise Structure Brings you to the customization world and provides easy-to-follow step-by-step instructions to help you set up your own SAP SD enterprise structure. To demonstrate the customization, we’ll set up the enterprise structure using the business requirement example from our fictitious company, Galaxy Musical Instruments.
Chapter 3: Master Data in SD Introduces you to master data setup. Master data plays a key role in the core operation of a business. It may include data about clients and customers, employees, suppliers, products, and so on. Chapter 3 will teach you about how to set up and customize the master data in SAP SD.
Chapter 4: Partner, Text, and Output Determination Takes your learning to the next level. You’ll learn about the role of partners, output, and text determination in the overall sales cycle, followed by how to customize the same to meet your business requirement.
Chapter 5: Pricing and Tax Determination Introduces you to the pricing and tax determination world. Here you’ll learn about various pricing elements and will configure them to determine the final price at which the sales transaction can take place.
Chapter 6: Availability Check, Transfer of Requirements, and Backorders Covers the available-to-promise functionality in detail. Promising accurate and reliable dates for delivery to your customers is a key element of the order fulfillment
process in today’s competitive environment, and this chapter talks about all the things you need to know in order to customize your SAP SD application to provide this reliability.
Chapter 7: Sales Covers the customization and sales cycle flow for a variety of sales documents types that are vailable in standard SAP. You will learn about contracts, standard orders, third-party orders, debit/credit notes, consignments, warranty and maintenance contracts, quantity contracts, and so on.
Chapter 8: Shipping and Transportation Covers shipping- and transportationrelated activities in detail. This chapter covers topics such as delivery documents, routing, picking, packing, transportation, transfer orders, and shipment documents.
Chapter 9: Billing Covers customer invoicing-related topics such as billing process, milestone billing, periodic billing, invoice lists, rebates, debit/credit notes, and payment card setup in SAP SD.
Chapter 10: Account Assignment and Revenue Recognition Covers GL account determination for account posting of the invoice document. We’ll also cover revenue recognition functionality in this chapter.
Chapter 11: Credit Management Covers credit management in SAP SD in detail.
Chapter 12: Material Determination, Listing, Exclusion, and Proposal Talks about various material-related unctionalities in detail. This includes topic such as material determination, automatic product proposal, customer–material info records, and so on.
Chapter 13: Serial Numbers and Batch Management Covers the serial number and batch management topics in detail.
Chapter 14: Advanced Techniques Talks about various technical topics such as user exits, BAPI, EDI, IDOCS, and ABAP queries. This chapter also covers switch framework and enhancement packs in detail.
The appendix at the end of the book contains valuable information about transaction codes, database tables, and recommended web resources for further learning. All through this book, we will use a case study of a fictitious company called Galaxy
Musical Instruments; it’s a trading organization that deals in musical instruments as well as related media and accessories, with operations in the United States and Mexico. This end-to-end case study will ensure continuity and help you understand how an organization can put SD’s functionalities to use.
