Q&A - Sales and Distribution

1. How Pricing Procedure Determination takes place

Pricing procedure determination happens in the sales document. It is based
on a combination of SALES AREA , Document Pricing procedure
(maintained in customizing , !ustomer pricing procedure (maintained in
sales area data in customer master
2. Wat is !tem "ategor#
Item categor" is used to pro#ide additional control functions in sales
documents in order to treat different $ind of items separatel", also different
processing of same material in different sales orders.
It controls #arious factors li$e pricing rele#ance, billing rele#ance,
deli#er" rele#ance, %hether schedule lines are allo%ed or not, %hether the
item is a te&t item, incompletion log etc.
It is determined on the basis of setting made in customizing , depending
upon Sales Doc t"pe, Item !ategor" group and is also influenced b" item
usage and higher le#el item categor" of a item in the sales order.
$. How %o&ement t#pe is determined in deli&er# document
'he mo#ement determined in the deli#er" document comes from the
schedule line categor".
'. How routine can be assigned in Pricing procedure
Routines can be assigned to pricing procedure in re(uirement , alt cal $e"
in pricing procedure at the line item le#el.
(. How account determination takes place in billing
Account determination in billing depends on the !hart of accounts, Sales
)rganisation , Account assignment *roup of the !ustomer (pa"er ,
Account assignment group of the material and the account $e"
). How ta* determination takes place
'he ta& determination is influenced b" the t"pe of transaction %hether it is
domestic or e&port, ta& classification of the customer and ta&
classification of the material.
+. How ""A gets determined
'he credit control area is determined from follo%ing +sales area ,
compan" code , user e&it ( if re(uired ,
It should be assigned to the respecti#e compan" code in customizing
,. Wat is A&ailabilit# ceck control
'he a#ailabilit" chec$ is controlled b" the follo%ing factors + !hec$ing
group must be maintained in the material master in a#ailabilit" chec$
field, chec$ing rule should be maintained in order to specif" the scope of
a#ailabilit" chec$ li$e %hich in%ard - out%ard stoc$ mo#ements must be
considered , the schedule line categor" also controls the a#ailabilit" chec$
in the sales documents and the deli#er" item categor" controls %hether the
chec$ should ta$e place in deli#er".
Also the rele#ant settings should be made in the customizing and a plant
should be defined in the sales document for the a#ailabilit" chec$ to ta$e
place.
-. Wat is a cop# control
!op" control is used to manage the data flo% in the documents lin$ed in
process chain e.g. from the in(uir" to (uotation, sales order to deli#er"
doc, (uotation to sales order, sales order to billing doc, billing doc to sale
order and billing doc to billing doc.
'his is in order to sa#e time in data entering at the #arious stages and also
to maintain the consistenc" of data across the %hole process and to a#oid
human error. Also to chec$ the completeness of the documents before data
is transferred.
It has #arious controls li$e cop" re(uirements , data transfer routines
,specif"ing the source doc and target doc , %hether complete reference has
to ta$e place etc.
1.. Wat is inter compan# billing
Inter compan" billing ta$es place %hen a sales organization belonging to a
different compan" code creates a sales order from a plant belonging to a
different compan" code (both compan" codes belong to one organization.
'he plant then deli#ers the goods to the customer for %hich the order %as
entered directl" and after that bills the sales organization of the ordering
compan" code.
11. Wat is incompletion rule
An incompletion rule is used to chec$ that important sales rele#ant data is
not missing so that the subse(uent functions li$e deli#er" and billing can
be completed.
Depending on the setting in customizing of sales document the incomplete
document can be sa#ed or cannot be sa#ed at all.
If it is allo%ed then the further processing depends upon the status groups
mentioned in the incompletion log.

12. "an picking location be de/aulted in deli&er#
.es the pic$ing location can be defaulted in the deli#er" . normall" the
pic$ing location comes from the sales order , incase it does not then the
pic$ing location determination rule specified for the resp deli#er" t"pe.
/ollo%ing rules are present + 0ALA , RE'A, 0ARE.
1$. %o&ement t#pes in SD transaction
'here are #arious mo#ement t"pes %hich are used in SD transactions. 123,
143 , 153 are some of them.

1'. Wat is "ondition tecni0ues
!ondition techni(ue refers to the procedure through %hich #arious pricing
elements li$e gross price, discounts, surcharges and ta&es are
automaticall" determined in the sales order.
It is also used in material determination, free goods , output determination
and te&t determination procedure.
In the pricing in sales orders first the respecti#e pricing procedure is
determined from the setting made in customizing , the pricing procedure
contains the se(uence in %hich the #arious conditions are to be e&ecuted ,
then each condition t"pe gets e&ecuted one b" one .
E#er" condition t"pe has an access se(uence attached to it, %hich forms
the search strateg". E#er" access se(uence has condition tables %hich
contains the $e" for the condition records.
the s"stem chec$s the #arious condition records and returns the #alue
%hen it is successful in finding a record.
1(. How number range is determined in "ustomer %aster
6umber range in customer master comes from the setting made in the
account group for %hich %e are creating the customer master record.
1). Stock 1rans/er scenario
'o address to stoc$ transfer scenario, as a process , P) is created b" plant
on the deli#ering plant. Deli#ering plant then created deli#er" document
%rt purchase order and (uantities gets updated. 7illing document %rt
deli#er" document is created b" deli#er" plant. Recei#ing plants then
recei#ed the material b" doing *R against deli#er" document. 'he
customer and #endor mapping for plant is done and customization is done
in transaction )0*6.
1+. 2rg structure
)rganization structure used b" SD are 8 Sales organization , Distribution
!hannel and Di#ision .the combination of Sales org , dist channel and
di#ision ma$es a Sales area. All sales documents e&ist %ithin a sales area.
/or internal org purposes Sales )ffice , sales group and sales person.
Shipping point + is used for processing deli#eries.
/or accounting the client is used to represent a business group and #arious
subsidiaries as !ompan" codes.
Plant is the highest org structure in 00 and is used to manage the stoc$ ,
the material is distributed from the plant. 'he stoc$ is managed at the
storage location le#el under the plant.
1,. 2utput controls
)utput is the information %e e&change %ith the customers. 'he output
control also happens %ith the help of condition techni(ue and %e ha#e to
assign the output t"pe to the ob9ects for %hich %e %ant to ta$e out the
output e.g. order confirmation for sales order, in#oice from cash sales
order , freight list from deli#er" and shipping label from items.
'hen %e create condition record for the respecti#e output t"pe.
In the record %e specif" the transmission medium , partner , time of output
,language.
1-. "ondition 3*clusion
!ondition e&clusion can be done %hen %e %ant that some conditions are
not e&ecuted during pricing. 'his can be done b" putting a condition
e&clusion indicator either in the customizing for the condition t"pe or
%hile maintaining a condition record . Also a re(uirement 5 should be set
in the pricing procedure for the particular condition %hich are not to be
e&ecuted.
!ondition e&clusion can also be done b" using e&clusion groups in order
to find the best price and highest discount ,%hen there are more than one
condition record for a particular item.
2.. 4eturns "#cle
:hen a customer returns the goods he sends them bac$ for this first a
return credit memo re(uest is created.
'hen the return credit memo re(uest is appro#ed and the billing bloc$ is
remo#ed.
After this the credit memo is created %ith ref to the credit memo re(uest.
'hen goods receipt is done b" creating a returns deli#er".
21. 3*cise "#cle 5 3*cise Document5 Depot Sales
In case the e&cise group attached to plant is defined as %arehouse , e&cise
document needs to be created at the time of billing. 6umber range needs
to be maintained for it and auto series group determination needs to be
configured. /or the depot scenario , during the goods receipt the stoc$
needs to be ta$en in (R*5;D using <3I* , the stoc$ is utilized %ith
transaction <3I< %hich is in ref to deli#er" document
22. "on/ig /or auto posting o/ e*cise doc
'he configuration for auto e&ise document posting can be configured in
transaction <3I' under the heading Auto determination of series group.
Re(uired series group can be assigned for sales area and e&cise group
combination. Auto posting also needs to be initiated
2$. Sales &iew in %aterial %aster
Sales #ie% in material master are sales org 3 , 5 , sales te&t. Also sales +
general-plant is also rele#ant for sales.
2'. 6ame /ew !mportant tables in SD
=7A>, =7AP, LI>P , LIPS , =7R> , =7RP , =7/A
2(. "as sales order
In cash sales the customer pa"s for the goods upfront and %ants the
deli#er" immediatel". In cash sales the deli#er" gets created automaticall"
as soon as %e sa#e the order. A cash sale in#oice also gets generated
automaticall" .
'he billing does not ha#e a output t"pe and billing is done %ith reference
to the order. 'he recei#ables are not debited to the customer ar account but
directl" to the cash account.

2). 1ird part# orders
In third part" orders the compan" does not deli#er the order ,but it is
deli#ered b" the #endor directl" to the customer and then the #endor bills
the compan". 'he compan" then bills the customer based on the #endor
in#oice.
/or the items %hich re(uire third part" processing a direct purchase
re(uisition gets created %hen a sales order is created for them. /rom that
purchase re(uisition the purchase order is created and send to the #endor.
'his controlled b" the material t"pe ,%hich determines %hether a material
is procured e&ternall" or is manufactured .
'he item categor" for third part" items is 'AS and is influenced b" the
item categor" group 7A6S.
2+. Scedule line categor#
schedule line categor" is an additional control function in sales
documents. It controls #arious functions li$e rele#ance for deli#er" ,
a#ailabilit" chec$ - transfer of re(uirements has to be carried out or not.
0o#ement t"pe for the item.
It is determined on the basis of item categor" of the item and the 0RP
t"pe of the material .
2,. Sipping point determination
shipping point is determined for each order item based on the 8
Deli#er" plant , shipping condition in sold to part" master record, loading
group in material master.