© SAP AG ZCA08 Course Overview - *

Logistics processing may seem very different in different production companies, but in fact many of these
companies according to certain common features can be grouped together.
From the point of view of a production company, the PP functions cover the essential tasks of core
business operations. PP functions range from the creation of the demand plan to requirements planning of
materials and production control. PP also includes other tasks that work in coordination with other
applications.
All areas need information about materials, such as finished products, semi-finished products and raw
materials. This information can be found in bills of material, routings and the individual work centers. For
SD, pricing and conditions are also available in the customer masters. Purchasing is interested in the speed
and reliability of the vendors supplying the materials. These are a few examples of the kind of information
needed about materials generally.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
The sales order forms the basis of the sales process. After an order from a customer has arrived, a sales
order must be created as a first step in the process. The sales order is generated at distribution chain level.
The ordered items may affect various divisions. The sales order is a document in SD and does not generate
postings in financial accounting. After the sales order has been created, the system performs an availability
check for the requested delivery date/time.
On the day of delivery, an outbound delivery document is created. The delivery can be billed for only
once the goods have been removed from the warehouse stock and posted as goods issue.
For picking, the warehouse management function is used. A transfer order must be created, which generates
the pick order. The requested goods are taken from the warehouse and prepared for delivery.
The goods to be delivered are posted as goods issue. In MM, a goods issue document is created, and in FI
an accounting document is created, so that the goods issue is posted to the correct general ledger accounts.
The last step in the sales process is billing. A billing document is created in SD, and a printed invoice is
sent to the customer. At the same time, a document is created in FI so that the receivables and revenues can
be posted to the correct accounts.

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© SAP AG ZCA08 Course Overview - *
 A range of organizational units are available for mapping business transactions in SD. In sales, you can
define the following organizational structures and use them for mapping and building sales structures.
- Sales organization
- Distribution channel
- Division
- Sales area
- Sales office
- Sales group
You can learn about further organizational units in SD, such as the shipping point or the transportation
planning point, in other SD training courses.

© SAP AG ZCA08 Course Overview - *

 Organization in SD is mapped with help of sales organizations. Each sales organization stands for a selling
unit in a legal sense. It is, for example, responsible for product liability and other rights of recourse that the
customer has. Sales organizations enable you to divide the market into different regional divisions.
Business transaction are handled within a sales organization.
A sales organization is assigned to one company code.
A sales organization is assigned to one or more plants.
For each sales organization, you can define separate master data, for example, it can have its own
customer master data, material master data, and condition records.

© SAP AG ZCA08 Course Overview - *

 In order to serve the market as smoothly as possible, SD uses various distribution channels. Distribution
channels are channels through which materials or services reach customers. Typical distribution channels
include wholesale trade, customers from industry, and direct sales.
Distribution channels can be defined according to marketing criteria or internal, organizational criteria.
Within a sales organization, a customer can be served by a number of different distribution channels.
In addition, the master data for SD can vary for each sales organization and distribution channel, for
example, customer master data, material master data, prices, surcharges, and deductions.

© SAP AG ZCA08 Course Overview - *

 A wide spectrum of products can be grouped together in divisions. In the SAP system, you can also
organize SD according to divisions.
For each division, you can make decisions specific to a customer, for example, about partial deliveries or
pricing. Within a division, you can perform statistical analyses or devise your own marketing strategy.

© SAP AG ZCA08 Course Overview - *

 A sales area is defined as a combination of sales organization, distribution channel, and division.
Sales documents, delivery documents, and billing documents are uniquely assigned to a sales area. Each
sales process takes place in one sales area only.
Master data relevant to sales can usually be maintained specifically, for example:
- Customer master data relevant to sales
- Material master data relevant to sales (whereby the division is a general field of the material master and
therefore a material can be assigned to one division only)
- Conditions (prices, surcharges, discounts)
Within a sales area you can perform analyses where you can, for example, analyze the sales volume in that
particular area.
When you define the organizational structure, we recommend that you keep it as simple as possible.

© SAP AG ZCA08 Course Overview - *

A shipping point is an independent organizational unit at a fixed place, within which the processing and
monitoring of deliveries takes place as well as the subsequent goods issue. The shipping point is directly
under the client level.
A delivery is processed by one shipping point only.
The shipping point responsible is determined at item level.
A shipping point can process deliveries from several plants. This only makes sense if the plants are located
close to one another.
Several shipping points can be responsible for a plant. They may, for example, have different loading
equipment or processing duration.
The permitted combinations of shipping point and plant are stored in the enterprise structure Customizing.

© SAP AG ZCA08 Course Overview - *

In the first step, create your own organizational structure in each of the data views.
In the next step, assign the organizational units to one another.
Ensure that the organizational structure is set up very carefully and in agreement with all user departments
in your company.
Try to make sure that you have a lean organizational structure so that, for example, maintaining master data
does not take up an excessive amount of time. For analysis purposes, there are also other options available.

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 Refer to chapter 1.1 of process description part II

© SAP AG ZCA08 Course Overview - *

© SAP AG ZCA08 Course Overview - *
 To a great extent, the values are suggested values, which you can overwrite in the sales and distribution
document if necessary.

These are, for example:

- Customer master data
- Material master data
- Condition master data
(This master data is created and maintained in the sales master data for automatic price determination,
for example, the price of a material or customer discount.)
- Messages are pieces of information that are sent to the customer using various media, such as mail,
EDI, or fax. Examples of this include the printout of a quotation or of an order acknowledgment,
order acknowledgements sent using EDI, or invoices sent via fax.
Control tables: You can create and maintain these tables in Customizing. Depending on the table settings,
the default value can be controlled by various data in the sales and distribution documents.
A previous sales document can also be used as a data source for another sales document (for example, a
quotation for an order).

© SAP AG ZCA08 Course Overview - *

 Business partners maintain business relationships with each other and interact on the marketplace.
Examples of business partners are:
- Customers
- Vendors
- Employees
- Contact persons
Examples of business relationships are:
1. Vendor - customer: The vendor acts as forwarding agent to the customer.
2. Contact person - customer: The contact person is a salaried employee of the customer.
3. Contact person - customer: The contact person advises the customer, but is not a salaried employee of
the customer.

4. Customer - customer: Ordering party and ship-to party are different.

5. Employee - contact person: A contact person receives personal support from an employee.
6. Employee - customer: Customer manager

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 The partner type differentiates between the various business partners, while the partner roles describes the
function of a partner in a business transaction.
This means that different customers (debit-side partners) can take on various roles in a business
transaction. For example, a customer who places an order does not necessarily need to be the same as
the customer who receives the goods or the customer who is responsible for paying receivables.
When you assign a partner role in the SAP system, this determines which function(s) a partner in the sales
process takes on. A partner can also take on several roles.
In the most simple case, all the partner roles required for the partner type "customer" are assumed by a
business partner, that is, the partner roles ordering party, goods recipient, payer, and invoice recipient
are all taken on by the same debtor.
Contact persons for a customer can be entered directly into the customer master and are therefore assigned
to this customer. However, these partners can also be assigned to other customers, for example, in the role
of a consultant.
The forwarder is an example of a credit-side business partner.
Employees of a company (for example, sales employees or accounting clerks) are managed in the
employee master. They can be assigned to partner roles of the partner type "personnel," for example, the
partner role "employee responsible."

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 The account group controls the amount of data and the way the customer master records react.
In the standard SAP system, account groups are already defined, for example, account group 0001
ordering party, 0002 goods recipient, 0003 payer. . .
If required, you can create additional account groups.
With the account group, you determine:
- For each data field: whether it is hidden or displayed, and whether it can be or must be maintained.
- The number range
- A range of other control elements, for example, for partners and texts in the customer master
Example:
A customer master record for debtors who only act as goods recipient (created with account group 0002)
requires shipping-relevant information. Information relevant for billing is not required and is therefore
hidden.
Unlike the account group, which controls a customer master record, with the partner roles you determine
which partner takes on a certain business task within the sales process.

© SAP AG ZCA08 Course Overview - *

 The customer master is divided into general data and data that is specific to the sales area and company
code.
The general data is relevant to sales and distribution, and to accounting. It is stored centrally (specific to
clients) to reduce data redundancy. It applies to all organizational units within a client.
The sales area data is relevant to sales and distribution and applies to the sales area (sales organization,
distribution channel, and division).
The company code data is relevant to accounting and applies to each company code.
The customer master encompasses all data required for processing orders, deliveries, and payments.

© SAP AG ZCA08 Course Overview - *

The customer master is divided into general data and data that is specific to the sales area and company
code.
The general data is relevant to sales and distribution, and to accounting. It is stored centrally (specific to
clients) to reduce data redundancy. It applies to all organizational units within a client.
The sales area data is relevant to sales and distribution and applies to the sales area (sales organization,
distribution channel, and division).
The company code data is relevant to accounting and applies to each company code.
The customer master encompasses all data required for processing orders, deliveries, and payments.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
 The structure scope must be set to ‚C‘ or ‚D‘ to access the variant configuration.
The strategy defines the search for BoMs.

© SAP AG ZCA08 Course Overview - *

 Configuration of a material variant can be done in view ‚Basic data‘, too. But this will have no effect in SD.
It is not necessary to define a configuration profile for a material variant. The profile of the KMAT it has
been created for will be used.
The relevant fields in the material master tables to see whether a material is a variant are MAEPV-CUOBJ
and MAEPV-STDPD.

© SAP AG ZCA08 Course Overview - *

Refer to chapter 1.2 of process description part II

© SAP AG ZCA08 Course Overview - *

© SAP AG ZCA08 Course Overview - *
A sales and distribution document can contain as many items as required. The items contain information
such as:
Conditions
Texts
Partners
Each item contains several purchase order item schedule lines. The first PO schedule line contains the
desired delivery date. If the purchase order quantity cannot be confirmed for this date, the system suggests
other delivery dates and confirmed order quantities in the following PO schedule lines. PO schedule lines
contain the following information:
Delivery dates/times
Delivery quantities for these dates

© SAP AG ZCA08 Course Overview - *

 Sales processes are controlled by the Customizing of the sales document list.
Depending on the structure, the Customizing of sales documents takes place at the level of the header, the
items, and the schedule lines. The related instruments of control are the sales document type, the item
category, and the schedule line type.
For the automatic determination of the item categories and the schedule line categories, you need to make
the appropriate assignments in Customizing.
To fully set up a business process, you need to tailor the forwarding of data from the sales document to the
following document to your requirements. You do this in copying control.

© SAP AG ZCA08 Course Overview - *

 For sales documents, you need to set a number of sales and distribution functions (basic functions):
Partner determination, price determination, message determination, text determination, material determination, credit
management, incompleteness, shipment scheduling
The controls for these basic functions can, as a rule, be fine-tuned at each document level.
The control of a sales document is complete only when all basic functions required have been processed.
Examples:
For price determination, you can set up your own costing sheet for a sales document type. In the first step, you process the
sales document type and costing sheet separately. Then you assign the desired costing sheet to the sales document type.
For each sales document type, you can also suggest your own messages. To do this, you assign an appropriate message
determination schema to the messages of the sales document type in Customizing.
These functions can be activated for each sales document type. When a request for quotation is created,
price determination, for example, is required but stock update is not.

© SAP AG ZCA08 Course Overview - *

 In Customizing for the sales document type, a number of settings are made that influence the whole sales
process, for example, the sales document category, delivery block, and billing block, or the document
types for subsequent deliveries and invoices.
Default values can also be defined for document creation. You can change these values by overwriting
them at different document levels, for example, you can change your customer's desired delivery date or
certain general conditions for contracts.
In addition, you can activate various checks, for example, to find information about open quotations or
outline agreements, to search for customer material info records, or to check credit limits. When you
activate such checks, remember that they may affect system performance.
Note:
The inclusion of a new sales document type in sales and distribution processing is a lengthy process
because many entries in Customizing depend on the sales document type. That is why you should
always create sales document types as copies of sales document types that already exist with similar
functionalities. As a template you should use a document type that either belongs to the SAP standard
system or has already been tested in your company.
When a document type is copied, not only the document type but also the related entries are duplicated.
After it has been copied successfully, a log is automatically created and you can save this for
documentation purposes.

© SAP AG ZCA08 Course Overview - *

 The system is delivered with various sales document types, which are used to map different business
processes. You can use them as examples.

© SAP AG ZCA08 Course Overview - *

 The item category controls the behavior of the item in the sales document and in the further processing of
the business transaction.
The essential distinguishing criteria for item categories are:
- Whether the business data of the item is permitted to deviate from that data in the document header
- Whether the item participates in price determination
- Whether and how the item is invoiced
- Whether it is an item with material reference or whether it is purely a text item
- Against which incompleteness log the data in the item is checked
The control in the item categories defined in the standard can be changed. New item categories can also be
defined. You should always create these as copies of item categories you have used before, and then
change them according to your needs.
The indicator for relevancy to costing only applies to items without schedule lines. You can, for example,
mark a text item as relevant for delivery, so that the system transfers this item from a sales order to
delivery.

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 The system is delivered with various item categories, which are used to map different business processes.
You should use them as examples or as templates for your own processes.
The item category is defined in the system using a four-figure key. To give an indication of the effect of an
item category, SAP uses meaningful keys in its standard system. The first two letters indicate the German
sales document type for which this item category was originally designed. The last two letters show how
the item category is used, for example:
- AFTX: sales document type = AF, use = TEXT
- TAD: sales document type = TA, item category group = LEIS
- KMN: sales document type = KM, item category group = NORM
You can decide whether to use these naming conventions or whether to define your own keys. The
standard keys are copied automatically from the German keys and are not translated.

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 The slide shows examples of settings from the standard R/3 system.
Each item in a sales document is controlled by its item category. This means you can:
- Use different item categories in the various sales document types
- Deploy different business processes for each item in the sales document
Depending on your requirements, you outsort the functions of the item categories differently, for example:
- You do not need price determination for the text item in the RFQ (item category AFTX) but you want
to create delivery quantities and delivery dates, and you therefore permit schedule lines
- You permit schedule lines for free items in the order (item category TANN), but you prevent price
determination or the transfer of this item to billing.

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 Item categories are assigned to sales document types.
The goal of this assignment is:
To have the system suggest an item category at order entry
To determine the item categories that can be selected by the user when changing the default
Assignment is influenced by:
The item category group from the material master record.
With the help of the item category group, you can, for example, gather together various material types
from an SD perspective. If necessary, you can set up new item category groups.
The use of the item, which is in some cases determined within the program.
For example, the system assumes that the usage is TEXT if, in the request for quotation or in the
quotation, the user creates an item without a material number and only makes an entry in the description
field. The usage FREE is used for controlling free goods items.
For subitems, the item category of the superior item.

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 Schedule lines contain delivery dates and delivery quantities as well as information for the transfer of
requirements and inventory management. They are the prerequisites for the delivery of materials.
In Customizing for the item category, you decide whether to permit schedule lines for the item. You can
assign schedule line categories to each item category. When you define the schedule line category, you
determine which schedule lines are actually relevant for delivery. Delivery relevance must be activated if
there is to be a physical delivery of goods.
In the schedule line category, you set the transaction type with which you control the posting of quantity
and value changes in inventory accounting. Inventory management has the task of maintaining the
movement types. In the SAP standard system, movement types are preconfigured for all operations. Many
of the movement types relevant for SD are between 601 and 699.
You can deactivate the transfer of requirements and the availability check at schedule line level.
From the sales document, you can automatically create a purchase requisition, which is the prerequisite for
an order. To do this, you need to set the order type, the item category, and the account assignment
category in the order.
If you set a delivery block in the schedule line type, this block is automatically set in the sales document at
schedule line level.

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 The system is delivered with various schedule line types that enable items for which schedule lines are
permitted to be controlled differently in subsequent business transactions. You should use them as
examples or as templates for your own processes.
The schedule line category is defined in the system using a two-figure key. In the standard system, keys
are delivered that often indicate the usage of the schedule line category. The first letter denotes the sales
process in which the schedule line category is used.
A = request for quotation; B = quotation
C = order; D = returns
The second letter in the key provides information about the behavior of the schedule line within
logistics.
T = no inventory management; X = no inventory management with goods issue
N = no material requirements planning; P = material requirements planning
V = consumption-based planning
You can decide whether to use these naming conventions or whether to define your own keys.

© SAP AG ZCA08 Course Overview - *

 Examples in the standard R/3 system.
Schedule lines in quotations are not relevant for delivery. The transfer of requirements is deactivated in the
schedule line category. Because no goods movements are required in your warehouses, you do not transfer
movement types.
Because schedule lines of type CP in the order should create a delivery item, delivery relevance is
activated. The transfer of requirements is activated in the schedule line category. Complete Customizing of
the transfer of requirements (for example, MRP) still requires the defining and assigning of the
requirements class. Goods movement is controlled by movement type 601. This means that when the
goods issue is posted to delivery, the quantity is taken from the unrestricted-use stock.
If a returns delivery follows a return, you need a schedule line type that is relevant for delivery. A transfer
of requirements does not make sense in this business process. With movement type 651, you control a
goods receipt to blocked stock returns instead of to goods issue, which is usually used.

© SAP AG ZCA08 Course Overview - *

 Schedule line categories are assigned to item categories.
The goal of this assignment is:
To have the system automatically suggest a schedule line category at order entry
To determine the schedule line categories that can be selected by the user when changing the default
The assignment is influenced by the MRP type from the material master record.
When the system determines the schedule line type automatically, it does so in two steps:
In the first step, the system tries to determine the schedule line category using the key combination item
category/MRP type.
If no schedule line type is found, the system searches using the key combination item category/no MRP
type.

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© SAP AG ZCA08 Course Overview - *
 The usage and the category of a condition (for example, material price, cargo, markups, and discounts) are
determined by the condition type.
For each condition type, among other things, the scale base type for the condition scale and the calculation
rule are controlled.
Possible scale base types Possible calculation rule
Value Percentage share
Fixed amount
Quantity Amount per unit of measure
Weight Amount per unit of weight
Volume Amount per volume unit
Time Amount per time unit

For each condition type, you can control whether it is automatically a surcharge or a discount, or whether
it can be both.

© SAP AG ZCA08 Course Overview - *

 Data about conditions is stored in condition records.
Conditions can be defined at any level you wish.
The levels most used for price agreements are predefined in the standard system.
You can easily add additional levels if you need them. In the SAP system, you can use a standard field
catalog with fields that are frequently used in price determination. However, you can make conditions
depend on any document fields you wish. If required, you must include them in the field catalog.
By entering a validity period, you can restrict a price agreement to a certain period.
Example: year dependent price list, discounts within a promotion period
You can maintain the values within a condition record (price, surcharge, discount) so that they depend on
a scale. There is no limit to the number of scale levels you can have.
For each condition record, you can define a lower and upper limit. This means that manual changes to an
automatically calculated pricing element are permitted only within the limits specified.

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 All the condition types possible for price determination are recorded in the pricing procedure.
Here, you can also define terms under which the individual conditions should be used.
The order in which the conditions are stored in the business document is also determined here.
The reference level enables you to determine an alternative basis for calculating the condition value and
for gathering together conditions for subtotals.
The pricing procedure makes any subtotals possible between the gross and net price.
In the pricing procedure, a condition type can be:
A required condition
A manually entered condition
A statistical condition

© SAP AG ZCA08 Course Overview - *

 An access sequence (batch search strategy) is defined for each condition type within the costing sheet.
This search strategy determines in which order condition records should be read for a condition type.
Each access in the access sequence consists of one condition table.
The condition table is a combination of fields that forms the table key of a condition record.
An access can be made dependent on certain conditions.

© SAP AG ZCA08 Course Overview - *

 In this example, an order for 120 pieces of a material is created. The system should automatically
determine the price.
First, the pricing procedure is determined depending on the sales area, customer, and sales document type.
The condition type of the first step is read and the assigned access sequence is determined.
The access sequence is read. The sequence of the condition tables represents the search strategy for
determining the appropriate condition record.
If no valid condition record is found after the first access, the search is continued with the next access. As
soon as a valid condition record has been found for an access, the condition record is read and the value is
transferred to the sales document according to the scale of the condition record.
The whole process is repeated for each condition type until the whole pricing procedure has been
processed.

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© SAP AG ZCA08 Course Overview - *
 The goal of shipment and transportation scheduling is to confirm a delivery date for a material that a
customer ordered.
With backward scheduling, the material availability date and the transportation planning date are
calculated using the customer's requested delivery date as the starting point. The delivery must be created
for the earlier of the two dates (delivery selection date).
If both dates are after the order date and the material is available at the materiall availability date, the
desired delivery date can be confirmed for the customer.
A schedule line is created for the sales document item. The date of the schedule line shows the confirmed
delivery date, which corresponds to the customer's requested delivery date.
If both dates are before the order date, the requested delivery date cannot be confirmed. That is why the
system now tries to determine the next possible date (forward scheduling).

© SAP AG ZCA08 Course Overview - *

 If the result of backward scheduling means that the delivery date the customer requested cannot be
confirmed, the system continues scheduling with forward scheduling.
Forward scheduling also takes into account the fact that the processes run in parallel for transportation
planning and staging and the preparation of the material. The longer of the two periods is relevant for
scheduling. However, the delivery selection date is the earlier of the dates for material availability and
transportation planning.
The earliest time at which the material is available is the new material availability date. This is the starting
point for the new shipment scheduling.
Two schedule lines are generated for the sales document item:
The date of the first schedule line is the customer's requested delivery date and does not have a confirmed
quantity.
The date of the second schedule line is the confirmed delivery date and there is a confirmed quantity.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
 Sales-order-related production means that goods are not made to stock, but are produced for a specific
sales order.
An individual customer requirement is created from the sales order item and then transferred to material
requirements planning.
Then you use MRP to plan your material requirements and the product is produced in production. Once
the product has been produced, post it via goods receipt to the sales order stock dedicated to this sales
order item.
As soon as delivery is due, you can create the delivery in SD and then post the goods issue. Goods issue
reduces the sales order stock. Then you enter the invoices in SD.

© SAP AG ZCA08 Course Overview - *

 The requirement quantity (planned independent requirement), the delivery date and information about the
configuration as individual customer requirement are transferred to MRP (PP) from the sales order.
You use the MRP run to create a planned order. Here, a BOM explosion is executed and the dependent
requirements of assembly/the components are created.
As soon as production can begin, create a production order from the planned order.
The confirmed quantity and the confirmed delivery date is confirmed to the sales order from the
production order.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
 Communication between SD and procurement is maintained using requirements.
The type of transfer of requirements can influence the availability check.
The employee responsible for MRP receives information in the system about orders, including information
about the quantities required by SD in order to fulfill the incoming orders.
The product can be made available by in-house production or external procurement.
If availability is not sufficient, purchase orders, for example, can be triggered by MRP.

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© SAP AG ZCA08 Course Overview - *
 The requirements transfer indicator determines whether or not transfer of requirements can take place at
all. The assembly type determines whether assembly processing is static or dynamic. The order type
determines which assembly order type is created in PP.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
The new SAP R/3 functions implemented in release 4.0 for valuated sales order stock mean that the system
handles make-to-order production in a similar way to make-to-stock production.
This means you can:
Determine production variances for related production orders
Settle these variances with Profitability Analysis
Create a cost component split for the cost of goods sold
In addition, sales order costing is a basis for:
Decisions for sales and pricing
Planned costs
Procedures in results analysis (percentage of completion)
Sales order costing supports various cost component views and delivers a calculated BOM structure and a
costing itemization.

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Use this option if your Product Cost Management applies to products only and not to the sales order itself.
This procedure is very well-suited to an environment with make-to-stock production. There is no need for
additional period-end closing tasks to be performed.
Profitability and sales accounting is performed here in Profitability Analysis.

© SAP AG ZCA08 Course Overview - *

Goods movements occur via the relevant sales order stock.
In release 3.0/3.1, this stock is not valuated. In release 4.0 you can choose whether you would like to
manage this stock as non-valuated or valuated sales order stock.

© SAP AG ZCA08 Course Overview - *

Because the material stock accounts for sales orders and projects include prices as well as quantities, goods
movements in these accounts trigger postings in financial accounting. Materials costs can be calculated in a
cost estimate for the sales order or for the production order. The stock value can therefore be retrieved from
FI immediately, which means that it is not necessary to perform a cost estimate in Controlling. The valuated
goods movements mean that the cost objects affected are debited and credited.
Goods receipt is valuated using a predefined strategy sequence.
The first goods receipt triggers a valuation in accordance with one of the following strategies in the given
strategy sequence. A price (standard price for the sales order stock), which is selected using one of the
following strategies, is copied to the strategy and from this point on serves as the valuation basis.
The system calculates the standard price on the basis of your material valuation for the valuated sales order
stock in accordance with customer exit COPCP002.
The system determines the standard price using a predefined sales order costing. This sales order costing
can be based on a unit costing or on a product costing.
The system determines the standard price using the cost estimate for the production order or the planned
costs for the WBS element. If there are several production orders for the same sales order item, the system
uses the standard price of the production order that delivers first.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
Excercises 1 to 11 shall be run now.

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 Im Standardcustomizing des Verkaufs (IMG) ist eingestellt, daß beim Sichern des
Kundenauftrags automatisch eine Bestellanforderung im Einkauf erzeugt wird.
Für jede Streckenposition im Kundenauftrag wird dabei automatisch eine zugehörige
Bestellanforderungsposition erzeugt. Während der Erstellung der Anforderung
ermittelt das System automatisch einen Lieferanten für jede Anforderungsposition. Hat
eine Streckenposition mehr als eine Einteilung, so wird eine
Bestellanforderungsposition für jede Einteilung erzeugt.
Aus der Einteilung des Kundenauftrages können Sie in die Anzeige der erstellten
Bestellanforderungsposition verzweigen.
Sie können Menge und Lieferdatum für eine Streckenposition nachträglich im
Kundenauftrag verändern. Die vorgenommenen Änderungen werden automatisch in
die zugehörige Bestellanforderung übernommen, solange der Freigabestatus der
Bestellanforderung dies noch zulässt.
Die Bestellanforderung ist auf den Kundenauftrag kontiert. Die Kontierung kann in
der Bestellanforderung nicht geändert werden.

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 Relevant for billing due to customizing of item category
Relevant quantity depends on customizing in copy control between sales order and invoice (for example
quantity from invoice receipt)

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Exercises 12 -17

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You can create a delivery manually with or without reference to a particular order. However, if you create a
delivery manually, the system does not allow you to perform operations such as delivering order documents.
Using collective processing (delivery due list) you can deliver all the documents due for delivery. In such
cases, the system automatically creates several deliveries. This can be done online or in the background (for
example, overnight).

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 Picking means making available the right quantity and quality of goods at the right time so that they can be
shipped to the customer.
You determine the pick relevance for each item category.
Picking is often done using a printed pick list. In this case, SAP recommends that you use the functions in
the WM transfer order. You do not need to implement the whole WM system; Lean WM is sufficient.
Using Lean WM involves using a small part of the functionality of the SAP R/3 component WM
(Warehouse Management).
With the help of message control for a delivery, data can be transferred to a subsystem. This data is then
used for picking.
In the standard settings in the system, a prerequisite for posting goods issue is that all items relevant for
picking are actually picked. This means that delivery quantity and pick quantity must tally in the delivery.

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Posting the goods issue for a delivery is the final shipping activity.
The prerequisite for posting the goods issue is that all compulsory shipping activities have been performed.
For example, if you work with picking relevance and confirmation requirement, these steps must be
completed.
Goods issue posting can be performed by changing an individual delivery. As an alternative, the collective
processing function can be used to first select all deliveries for a goods issue posting and then to post them
for this goods issue. To do this, you can also use the outbound delivery monitor.
In addition, you can post goods issue by confirming the transfer order.
When you process an individual delivery, before you post the goods issue you can specify the effective
goods issue date without changing the planned date. A dialog box appears in which you can enter the actual
goods issue date and then post the goods issue on this date. The corresponding goods issue document is then
posted with the actual goods issue date. If the goods issue date is not explicitly specified, the current date is
taken as the effective goods issue date.
The goods issue applies to the whole delivery.
Errors are logged, for example, if not all data is there (batch numbers or serial numbers missing) or if items
have not been picked at all or have only been partially picked. In such cases, the goods issue is not posted.

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Goods issue posting restricts the changes you can make to a delivery. Particularly, quantities cannot be
changed. The delivery must correspond exactly to the real situation.
Goods issue:
Reduces the stock in the warehouse
Posts the value change to the stock accounts in inventory accounting
Reduces the delivery requirements
Adds status information to the delivery
Is recorded in the document flow
Generates the worklist for billing
If you want billing using the Create billing document transaction to be possible before goods issue, you
must make this setting in copy control in Customizing.

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When you create an invoice, you can refer to an order or to a delivery.
If you want to ensure that the goods were sent before the invoice is created, create an invoice that relates to
a delivery.
- Example:
Delivery of a carpet

You can refer to an order and a delivery at the same time in an invoice.
- Example:
You can create one invoice for a carpet and its fitting as long as the requirements for combining them are fulfilled.

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 If you want to invoice a customer for a service, you usually refer to a sales order in the invoice because
deliveries are not normally made for a service.
- Example:
Fitting a carpet

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 While processing the billing due list, the system combines many items into as few billing documents as
possible. Depending on the system settings, these can be order items or delivery items.
To be combined successfully, items must have certain common characteristics, for example, the same
billing date, the same invoice recipient, and the same terms of payment.
In the standard system, there are a number of options for creating invoices. You can choose the one that
best fits your requirements. Here are examples of the most widely used options:
- Invoice split:
You have a sales order for which there is one delivery. Two billing documents are created from the
delivery.
- Separate billing documents for each delivery:
You have a sales order for which there are two deliveries. Two billing documents are created from
these deliveries.
- Collective invoice:
You have two sales orders for which there are three deliveries (for example, different goods
recipients or partial delivery). From these deliveries, one billing document is created.

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 To speed up billing document creation, you can use the billing due list to process several invoices at the
same time. The system combines as many items that need billing into as few billing documents as
possible.
You can use this function for:
- Manually processing the billing due list (online processing)
- Collective processing using a background (batch) job, for example, in the evening or at night

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© SAP AG ZCA08 Course Overview - *
Accounts receivable accounting (AR) records all business transactions that affect customer relationships. It
obtains much of its data from sales and distribution (SD - Sales & Distribution).

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Reconciliation accounts connect the subsidiary ledger with the general ledger in real time, that is, as soon
as a posting has been made to a subledger account, a posting is made to the corresponding reconciliation
account in the general ledger.
Subsidiary ledgers that are linked to the general ledger via reconciliation accounts are accounts receivable
ledgers, accounts payable ledgers, and asset subsidiary ledgers.

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For account query, balance display and item display are available. They can be used separately or together,
with one following on from the other.
The balance display gives an overview of the saved transaction figures in an account. When you double-
click a transaction figure, a list of the line items is displayed that produce the transaction figure.
From this line item list, a double-click on an item will take you to the document that contains this item.
If an actual document exists for this R/3 document and if it has been archived optically, you can also
display the actual document.

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Incoming payments can be handled differently according to the enterprise or the country. Incoming
payments are posted as shown on this slide:
If the debtor pays his or her open items in full or with a legitimate deduction of cash discount, the open
item is cleared.
If the payment difference is only minimal, this can be automatically written off. The maximum amount
for a minimal payment difference is determined when the system is configured.
A larger payment difference must be dealt with manually. Reduced payments can be posted in two
different ways:
- Partial payment: A new open item to the value of the amount paid is generated in credit and an
invoice reference is created for the open invoice.
- Residual items: The open invoice is cleared and a new item (residual item) is created to the value of
the payment difference.

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© SAP AG ZCA08 Course Overview - *
© SAP AG ZCA08 Course Overview - *
In the value fields of costing-based profitability analysis, you will find the amounts and quantities that are to
be used for reporting. They map the cost and revenue structures and are the most detailed level to which
values are posted.
An important task in the Customizing of costing-based profitability analysis is the appropriate assignment of
costs and revenues to the defined value fields, so that a contribution margin that meets the company's
requirements can be mapped in reporting.

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 CO planning makes it possible to enter plan values for any profitability segment you choose.
You are free to select the planning level.
The planning level does not have to be consistent. However, a consistent dataset exists at all levels.

© SAP AG ZCA08 Course Overview - *

The goals of profitability management in SAP R/3 are best explained using typical questions that you can
answer using profitability analysis.

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When billing documents are posted, the values are transferred to profitability analysis. For each item in the
billing document, a line item is automatically created in profitability analysis.
All characteristics that are defined in the profitability analysis and contained in the billing document are
transferred to the line items of profitability analysis next to the customer and material numbers.
If the system detects an error in posting the billing data to financial accounting or profitability analysis (for
example, in the derivation of characteristics), the billing document is posted, but financial accounting and
profitability analysis are not updated. In such a case, the reason for the error needs to be removed and the
billing document is postprocessed using the function Release accounting. This function triggers the creation
of the financial accounting document as well as the line items in profitability analysis.

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Characteristics
Answer the question: What do I want to report on?
Examples: division, region, article, customer
Characteristic values
Answer the question: Which values can I have for these characteristics?
Examples: southern region, northern region
Profitability segments
Answer the question: How do I technically define my distribution channel?
Example: combination of northern region, article A1, sales representative Müller
Value fields
Answer the question: Which key figures do I want to have and analyze in the database?
Examples: gross revenues, surcharges, discounts, cost of sales

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Meaning of characteristics
Characteristics are the analysis dimension of CO-PA. They define which objects the user can analyze. They also
define how the distribution channels are technically mapped.
Some important characteristics, for example, sales organization, customer, and article, are automatically available in
every operating concern. These are known as fixed characteristics.
As well as these fixed characteristics, you can define up to 50 more user-defined characteristics for each operating
concern. In profitability analysis, you can usually take into account 10 to 20 characteristics for specific controlling
requirements.
Maintaining characteristics in the field catalog
You need to add characteristics that are not available as fixed characteristics to the field catalog before you can add
them to the data structure of an operating concern. The characteristics in the field catalog are available in all clients in
a system.
At the start, the field catalog contains some recommended characteristics that you can use to define a new operating
concern. There are two ways of adding characteristics to the field catalog.
You can take an existing field (characteristic) from certain SAP tables. The field can have a maximum of five
characters.
You can create the characteristic manually. This is a newly defined characteristic, its name begins with WW and has a
total of 5 or 6 characters.
A check table, which contains a characteristic's valid values, can exist for each characteristic. This means that the data
that enters CO-PA is checked for validity.
When you create a user-defined characteristic in the field catalog, you can choose whether you want the system to
create a check table or not.

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Meaning of value fields
Costing-based CO-PA contains the values and quantities for reporting. Value fields that, for example, present a
summary of cost elements aggregate information. Value fields can also contain very detailed information, for
example, if they are filled by one cost element only.
In general, sales-related key figures (such as revenue elements, discounts, surcharges) are presented in great detail.
However, periodic costs (for example, costs of various functional areas) are collected in less detail in value fields. In
one operating concern, you usually need between 20 and 60 value fields.
Unlike characteristics, there are no fixed value fields that are contained in each operating concern.
Maintaining value fields in the field catalog.
Define value fields before you add them to the data structures of a new operating concern. The value fields you have
created are available in all clients in a system.
The SAP system is delivered with a selection of default value fields that are often used in operating concerns. The
defined value fields have 4- or 5-character names beginning with VV.
For key figures such as net revenues and contribution margins, which are calculated from other value fields, you do
not need to create value fields. These values are usually calculated dynamically using the value fields when the report
is executed. This means that the memory required in the database is reduced to a mimimum.
Basic key figures (in account-based CO-PA only)
In account-based profit accounting, all values and quantities are kept for each cost or revenue element in basic key
figures. Each value is kept in three currencies, which you can analyze in the information system.

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 Cost-of-sales accounting
• The revenues for a period for the individual products are matched to the cost of goods sold for these
products.
• Stock changes are not taken into account.
• Product-related profitability determination is possible (or aggregated according to other criteria).
• The effect on the result is known as early as the billing stage if the valuation is performed using a
standard cost estimate.
• A profitability report can only be created if sales have been made.
Period accounting
• The total costs of a period are matched to the revenues of a period.
• For production that is not synchronous to sales, the stock changes for finished and unfinished
products must be taken into account.
• The total output is always determined. A calculation of profits is always possible and is not tied to
external sales.

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Exercises 18 -21

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© SAP AG ZCA08 Course Overview - *
Goods receipt is valuated using a predefined strategy sequence.
The first goods receipt triggers a valuation in accordance with one of the following strategies in the given
strategy sequence. A price (standard price for the sales order stock), which is selected using one of the
following strategies, is copied to the strategy and from this point on serves as the valuation basis.
The system calculates the standard price on the basis of your material valuation for the valuated sales order
stock in accordance with customer exit COPCP002.
The system determines the standard price using a predefined sales order costing. This sales order costing
can be based on a unit costing or on a product costing.
The system determines the standard price using the cost estimate for the production order or the planned
costs for the WBS element. If there are several production orders for the same sales order item, the system
uses the standard price of the production order that delivers first.
If you have created the same material as a collective requirements material, the system reads the master
record of the collective requirements material. The standard price indicated there can be calculated using
different methods, for example, in a standard cost estimate.

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© SAP AG ZCA08 Course Overview - *
For goods movements to be possible within the sales order stock, you must select a requirements class with
an account assignment category that permits goods movements within the sales order stock. To do this,
enter E (sales order stock) in the special stock field.
To gather costs in a sales document item, you must select a requirements class with an account assignment
category that permits the gathering of costs and revenue in sales order items. To do this, enter E (settlement
using sales order) in the consumption posting field.
For complex production on the basis of sales orders, we recommend that you gather costs in sales order
items. In the standard system, the appropriate account assignment category is E (make-to-order production
with sales order controlling).
If you work with valuated sales order stock and do not want to use the sales item (item in a request for
quotation, a quotation, or a sales order) as a carrier of costs and revenue, do not enter anything in the
consumption posting field in the account assignment category. We recommend this procedure particularly
for mass production based on sales orders. In the standard system, the appropriate account assignment
category is M (make-to-order production without sales order controlling).
Materials from make-to-stock production should also, in certain cases, be assigned to a sales item that
carries costs and revenue. This is recommended, for example, for spare parts for an individual requirements
product in the sales order stock. In this case, enter E (settlement using sales order) in the consumption
posting field. In the standard system, the corresponding account assignment category is B.

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The indicator for special stock in sales document item determines how the sales order stock is valuated. The
valuation procedure for dependent requirements that are controlled by individual requirements is taken from
the SD document of the component.

© SAP AG ZCA08 Course Overview - *

 How to check the pricing?
Set a breakpoint before call to CTMS_GET_CONDITIONS and check g_vkond_sd. If
this table is filled incorrectly it is an LO-VC problem. If it is filled correctly the message
should be handled by SD.
Set breakpoint at call to function PRICING_LOAD_VARIANT_KEYS and check how
table xcvkey is filled. If it is still correctly filled than it is a pricing problem (SD-BF-PR)

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