Enterprise Wide Information Systems

Configuring SAP

Instructor: Richard W. Vawter

University of
Southern
California
Objectives
 The primary objective of this discussion is to show how the SAP R/3
Implementation Guide (IMG) can be used to aid the project team in
configuring business transactions.
 For simplicity, we will keep our focus on the Order process.

 Upon completion of this topic, you should be able to:

 Describe the various implementation and configuration tools available in
the SAP R/3 system.
 Anticipate how elements of the Customer Master are integrated and are
used to control the SD processes.
 Use elements in the Material Master to streamline COM.
 How to configure the Billing process for data flow and price control.

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Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process

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Methods for Implementing & Configuring SAP
SAP R/3 includes several tools to facilitate configuring SAP
and continuing support .

 The R/3 Reference Model - describes the business processes

included in the standard R/3 system as well as the relationship
among the different application modules.
 The Implementation Guide (IMG) - guides users in matching their
business requirements with the SAP standard software.
 The Procedural model - is used as a navigator to guide you through
the whole implementation and configuration process.

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The Implementation Guide
 A tool that leads to a step-by-step customizing of
selected parts (modules) of the R/3 system.
 It guides the project team in matching the business
requirements with the SAP standard software.
 With the IMG project management functions...
 Consultants in charge of implementation first decide which parts of
R/3 are to be customized.
 The system then automatically generates the needed hierarchical
list of the customizing steps for achieving that customization.

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The Implementation Guide
 Basis configuration takes place.
 Global settings are set as default in the SAP system.
 The structure is defined to match the organization’s
business function.
 Applications are created to meet business requirements.
 Financial Accounting  Sales and Distribution
 Materials Management  Human Resources

 Cross- application functions are developed.

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The Enterprise IMG
 The Enterprise IMG is just a subset of the Reference IMG.
 It is where all the customizing takes place.

SAP Reference IMG Enterprise IMG

FI SD CO Project IMG
CO

CO MM PP MM CO FI

MM PP FI Project 002
Additional needs,
PP HR Project 001
Project 002
e.g. upgrade

FI
PS …. University of
Southern
California
Customizing Objects
 As a rule, you will have more than one SAP system.
 Development system  Test system  Production system
 Changes made in the development system are
transported to the test system, then to the production
system.

Development system Transport Test system

Request
Implementation guide
Workbench
Sales organization
organizer Sales organization
1 2 2
1 2 3 3
1 2 3 4 4
Sales documents Sales documents
Versions
1 1
1 2 2
Customizing - How to Proceed
1. Define the organizational structures in the IMG and
name the individual organizational elements.
2. Assign the organizational elements.

 Define the organizational elements

 Assign the organizational elements

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Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process

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How Master Data is Integrated in SD Processing

MM Materials Mgmt.
Sales
Sales support
support PP Production Planning
PM Plant Maintenance
CC Controlling
Sales
Sales FI Financial Accounting
PS Project System

Master Data MM
Materials Mgmt.
Customers Financial Accounting
FI
Materials
Bills of Materials
Customer-Material Info
FI
Product Proposals Financial Accounting
Controlling
CO
Data
Data
Warehouse
Warehouse

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Origins of Data in Sales Documents
 When you create a sales order, the system proposes
most of the data from the master records.

Sales order
Customer master data
Conditions

Material master data

Texts
.....

Control tables

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Business Partners (Partner Functions)
 Partners - someone you have a relationship with or
have to communicate with.
 Functions - each partner type has specific functions.

Sold-to party

........ Ship-to party

Partner
Employee Bill-to party
Functions

Forwarding agent Payer

Contact person

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Business Partners - Customer Master
 Essential business partners for a sales transaction are the sold-to
party, ship-to party, payer and bill-to party.
 They are stored in the customer master.

Sold-to party Ship-to party

Customer
master

Bill-to party Payer

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Customer Master - 3 Major Data Views
 Sales data - data specific to sales, e.g. sales,
distribution, shipping.
 Company Code data - financial accounting data.
 General data - data assigned directly to a client so it’s
available to the other two areas.

General data

FI SD

Company code data Sales data

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Customer Master - Account Groups
 Account Group codes define what information will be needed; what
fields will be required.
 A payer only needs address information, etc, while a sold-to party needs an
address plus delivery address, etc.

Create sold-to party

Customer : C1
Sales organization : 0001 ACCOUNT GROUP 0001
Distribution channel : 01
Division : 01 Field selection
Number assignment
Account group 0001
: 0001
One-line account: Yes/No
Output proposal

ACCOUNT GROUP

0001 Sold-to party

0002 Ship-to party
0003 Payer
0004 Bill-to party University of
... Southern
California
Customer Master - Selecting Fields for Data Groups
 Using field selection, you can define for each account group whether fields are optional or required.
 You can suppress any fields which you do not require.

Data in the customer master record Address

Communication
General data Control data
Payment transactions
Company code data
Sales
Shipping
Sales data Billing
Partner usage
Output
IMG for Sales

Hide Required Optional Display

Sales group
Statistics group
Customer group
Pricing procedure
Product proposal
....
Customer Master - Selecting Fields for Data Groups
 Account groups are already set up in the R/3 system
 Sold-to party  Ship-to party  Payer  Bill-to party
 Specific fields are selected for each of these account groups
 The selection of fields depends on the functionality of the
partner function needed.
Account group Account group Account group Account group
0001 0002 0003 0004

Sold-to party Ship-to party Payer Bill-to party

Sales Sales 11 Sales 11 Sales 11

Shipping Shipping ----- -----
Billing Billing 22 Billing -----
Partner usage ----- ----- -----
Documents Documents Documents Documents

1. Controlling for authorization 2. Tax information

Customer Master - Combination Rules in Field
 The combination rule with the highest priority
determines the respective field status.

Transaction fields marked as:

Suppress Display Required Optional

Account group marked as:

Suppress Suppress Suppress Suppress Suppress 1st priority

Display Suppress Display Display Display 2nd priority

Required Suppress Display Required Required 3rd priority

Optional Suppress Display Required Optional 4th priority

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Customer Hierarchies
 Create hierarchies to reflect the structure of the customer organization.
 Use customer hierarchies
during sales order processing
and billing for determining ACME
ACME Co
Co Unique
pricing. node number
Central
4711

ACME
ACME Co
Co ACME
ACME Co
Co
North South
4713 4712

ACME
ACME Co
Co ACME
ACME Co
Co Customer
2742
Northwest Northeast
4714 4715

Customer Customer University of

2743 2744 Southern
California
Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process

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Materials - Material Types
 The material type is part of the general data on a material.
 The departments responsible for a material type determine
which views must be maintained for a specific material.

A
Quantity/Value update
Material
Price control
Variance for each plant

 Description Account
 Department assignment
Matl. type
 Internal/External POs

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Selecting Fields for Materials - Influencing Factors

 An individual control table is available for each

influencing factor shown here and corresponds to a
group of fields in the material master.

Transaction

Procurement
indicator

Material type
Field selection
??

Plant ……………..

…………
…………
Industry sector

SAP Sales &

Distribution
Financial

components
Accounting

Materials
Mgmt. Controlling

Production Fixed Assets

Planning Mgmt.

R/3

University of
Client / Server
Quality
Mgmt.
ABAP/4 Project
System

Plant
Maintenance Workflow

Southern
Human Industry
Resources Solutions

California
Materials - Material Status
 You can define different kinds of material status and
for each status, how the system will react when an item
is created in a sales document.

Material Status Quotation Standard Order

Discontinued part Error Warning

Technical defect Error Error

.
.
.

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Product Hierarchies
 Product hierarchies are used for pricing and analysis.
 In the Standard SAP setup, they can be defined with up
to 18 characters and three levels.
Level
00001
1
Tools

0000100001 0000100002
2 Electrical appliances Compressors

000010000100000001 000010000100000002 000010000200000001 000010000200000002

3 Electric screwdrivers Electric drills Electric drills Electric drills

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Customer-Material Information
 You can define customer-specific data for a material in
a customer-material information record. This may incl:
 cust.-specific matl. #  cust.-specific matl. description  etc.

Customer-Material Information
Sales
Sales organization
organization :: 1000
1000
Distribution
Distribution channel
channel :: 01
01
Customer
Customer :: C1
C1

Customer-specific
Customer-specific data
data
Material
Material Description
Description Material
Material Description
Description
M1
M1 Computer
Computer AGAG M234
M234 Computer
Computer 550C
550C
M2
M2 Computer UG
Computer UG M598
M598 Computer 1650B
Computer 1650B
.. .. .. ..
.. .. .. ..

Sales order
Sold-to
Sold-to Party:
Party: C1
C1

Customer
Customer Matl
Matl Description
Description Qty
Qty
M234
M234 Computer
Computer 550C
550C 10
10
M598
M598 Computer
Computer 1650B
1650B 33
Proposing Items Using Product Proposal
 Material combinations which you use frequently can be
stored in product proposals.

Product proposal : 5000002

Validity period : 01/01-12/31
Search term : SD product proposals

Item Material Qty.

10 M1 40
20 M2 50
30 M3 30 Material or
material + quantities
Sales Order

Sold-to party: C1

Item Material Qty.

10 M1 40
20 M2 50
University of
30 M3 30
Southern
California
Bill of Materials - An Example
 By making the appropriate settings in Customizing, you
can copy the components in the bill of material to a
sales order as one “item”.

Computer

Mouse Monitor CPU Keyboard

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California
Bill of Material - Bill of Material Categories
 The bill of material category serves as a link to different
objects.
 You can create bills of material only for objects existing
in the material master.
Material Material BOM
master record

A
Material Equipment Equipment BOM
master record

Document Document BOM

master record
Sales order

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Bill of Material - Where They Are Used
 Item status controls how BOM items are processed in
related application areas:
 Production (operations)
 Construction (technical data)
 Pricing
 Sales & distribution (order quantity)
 Plant maintenance (maintenance information)

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Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process

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California
Billing Types
 The billing type controls the entire billing document.
 Billing types are dictated by the type of the reference
document.

Invoice

Pro forma invoice Cash sale

Billing
Invoice list Credit/debit memo
Types

Cancellations Returns

Inter-company billing

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The Billing Process
 Each billing document requires a reference document.
Order Document Types Delivery Doc. Billing Documents
Standard
Inquiry Quotation Order
Type: IN Type: QT Type: OR Type: LF Type: F2
Header Header Header
Item: TAN Item: TAN
Schd. line Schd. line

Returns
Type: RE Type: LR Type: RE
Header
Item: REN

Cash Sales
Type: BV Type: LR
Immediate

Credit
Type: CR Type: RE
Billing Documents
 You can reference either an order or a delivery
document when creating an invoice.
 This is configured in the IMG by the item category.

Std. Order Delivery Invoice

or
Std. Order Delivery Invoice

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Credit / Debit Memos
 However, with credit / debit memos, you can only
reference the credit / debit requests (sales documents).

Order Delivery Invoice

Credit request Credit memo

or
Debit request Debit memo

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Returns
 Credit memos are created with reference to the returns
(sales documents) and NOT to the returns delivery.

Sales Order Delivery Invoice

or

Credit request Returns Credit memo

delivery

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Data Flow
 You can influence the data flow from reference
documents to billing documents by:
 Billing types  Copying control for header
 Copying control for items
For example
- payer
- item number
- prices
- texts

Order Delivery Invoice

For example
Doc. flow - ship-to party
- quantity
Data flow
- texts

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Copy Control
 As just mentioned, how data is transferred in the billing
process can be influenced by the copy control data.

Target Source
Billing Delivery
type type

Header F2 LF

Target Source Source

Billing Delivery Item
type type category

Item F2 LF TAN

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Billing Quantities
 Delivery and order quantities are referenced in billing.
 You can create a billing document with reference to an
order for quantities already delivered.

Billing Billing Quantity

With reference to an order Delivery quantity minus quantity

already invoiced

With reference to a sales document Order quantity minus quantity

(e.g., credit memo) already invoiced

With reference to a delivery Delivery quantity minus quantity

(e.g., billing doc. Types F1 and F2) already invoiced

Pro forma invoice F5 Order quantity

Pro forma invoice F8 Delivery quantity

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Pricing in Billing Documents
 You can specify a pricing type for each billing document
type and item category.
Price: Material M1 Price: Material M1 Discount
from 1.pc 10.00 from 1.pc 11.00 from 50.00 1%-
10.pc 9.50 10.pc 10.50 100.00 2%-
20.pc 9.00 20.pc 10.00

January March
Invoice A
M1 10 pc
Order 10 x 9.50
Delivery Manual discount
M1 20 pc
20 x 9.00 M1 10 pc Invoice B
Manual discount M1 10 pc
10 x 10.50
Discount 2 %
Pricing type:
Invoice C
A Price components are copied and updated (scale
redetermined). M1 10 pc
10 x 10.50
B Pricing is carried out again. Discount 2 % & manual
C Manual price components are copied, pricing carried out Invoice D
for all other components.
M1 10 pc
D Price components are copied as is from the reference 10 x 9.00
document. Manual discount
Key Points (1)
 The Implementation Guide (IMG) enables the project team to match
the business requirements with the SAP standard software and
customize the transactions to the needs of the organization.
 You can minimize the time an effort needed to create sales
documents by thoroughly maintaining the customer master and
defining all types of business partners.
 The account group allows you to select data fields for maintaining
the master data.
 By classifying materials by material types, you can specify which
views for a material are to be maintained.

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Key Points (2)
 When maintaining material master records, you can specify (in the IMG)
which fields are to appear, to be required or optional, or are to be blocked.
 You can store customer-specific information on individual materials (e.g.
customer material numbers and descriptions) in customer-material
information records. This enables you to create orders using material
numbers specified by the ordering party.
 When you frequently sell combination of materials, you can simplify sales
order creation by creating product proposals.
 You can also create BOM’s to combine several materials for use in SD.

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Key Points (3)
 Billing documents always reference a previous document.
 Reference documents will dictate the billing document type.
 The flow of data is controlled:
 by the programs
 by billing types
 by copying control tables
 You can determine copying control at:
 the header level
 the item level

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