SD and MM INTEGRATION

INTEGRATION
Organization structure
FI MM SD
Company Company Company
Company code Company code Company code
Segments Plants (Factory, Branch) Sales organization
Profit centers Storage locations Distribution Channel
Divisions
Movement types: (Similar to posting keys in FI )
101 Material receipt against purchase order /production order
102/122 Reversal of 101
201 Issue to cost centers
202 Reversal of 201
261 Issue to orders
262 Reversal of 261
521 Production receipt without production orders.
522 Reversal of 521
561 Opening stocks taking
562 Reversal of 561
601 Delivery (sales)

602 Reversal of 601
Transaction key /process key
a) BSX Inventory postings
b) WRX Goods receipt /Invoice receipt (GR/IR)
c) PRD Price difference /Production order differences
d) GBB Offsetting entry for inventory postings
(i) VBR Consumption
(ii) VNG Scrapping
(iii) BSA Opening stocks
(iv) ZOF Production receipt without production order
(v) AUF Production receipt with production order
(vi) VAY Delivery where sales account is created as revenue

element (CO implemented)
(vii) VAX Delivery where sales account is not created as revenue
(viii) AUA production order differences
Valuation class:
Valuation class is a group of material with same account determination .Valuation class
determines the GL accounts to be posted automatically.
A) Raw materials purchases Local purchase

Imported Valuation class - A
Inter unit purchases
Intercompany purchases
B) Stores and Spares Local valuation class - B
C) Finished goods Own manufacturing valuation class - C

Material types Price controls
Raw materials ROH V-Moving average price purchase price
Stores & spares ERSA V-Moving average price purchase price
Packing & material VERP V-Moving average price purchase price
Finishing goods FERT S-Standard price Raw materials + Overheads
Purchased V- Moving average price Purchase price
Produced S- Standard price Raw material +Overheads
Trading goods HAWA V-Moving average price Purchase price
Services DIEN
Trading goods Purchase FG and sell FG without doing any processing.
Material types are similar to account groups in FI
For materials we can open 2 periods at a time. MMPV
Material Master Imp tabs :
Basic data ,Purchase view, Sales view, MRP view, Quality, Ware house management
Accounting, Costing etc.
MM Flow
A) Material requisition By production Dept to Stores
B) Purchases requisition By stores to purchases
C) Call for enquiries, Get quotations and do price comparisons By purchase Dept.
D) Create purchase order Vendor number, Material
Quality, Rate, Plant, Company code
Delivery terms, payment terms,
Purchase organization
E) Release It is optional
It will work through work flow
If P.O value is less than Rs.10000 To be released by manager purchases
If P.O value is Rs.10000 and above To be released by GM(Purchases)
And less than 100000 if P.O value is
10000 and above To be released by Director
Once we save the purchase order, based on the value it goes to the inbox of the command
authorized person, till is releases we can’t take goods receipt.
F) Goods receipt –With reference to P.O
Inventory RM local DR 100
To GR/IR clearing RM local 100
Balance sheet current asset BSX
Balance sheet current liability WRX
(Qty in GR*Rate as per P.O)
G) Invoice verification-Against PO/GR
GR/IR clearing RM local DR 100 Balance sheet CL - WRX
To party 100 Balance sheet CL - From PO,
Party no. will be taken

i) Raw material consumption
RM Consumption Local DR 100 P & L GBB VBR
To inventory RM local 100 BS C/A BSX
J) Wages payment
Wages A/c DR 20 P & L Debit
To Bank 20 BS CA
K) Production Receipt At product cost
Inventory FG DR 120 BS C/A BSX (FG)
To INC/DEC in stocks FG 120 P & L Credit GBB
ZOF – In case of on production order /CPP module not implement .
GBB AUF –in case of production order (PP module implemented)
Valuation Modifier Indicates a grouping of valuation areas to facilitate the administration of the table
of standard accounts by minimizing the number of entries.
Together with other factors, the valuation grouping code determines the G/L accounts to which a goods
movement is posted
General Modifications:
SD steps
L) Delivery –At product cost
INC /DEC in stocks FG DR 120 P & L Credit
GBB VAX –If sales account is not created as revenue element
GBB VAY –If sales account is created as revenue element
To Inventory FG 120 BS C/A
M) Billing
Customer A/c DR 150 BS C/A
To Sales 150 P & L credit ERL
LCL=Local
Inventory FG=Raw material consumption local +wages
GR=Goods receipt
INC/DEC STK FG=Increase /Decrease stock finished goods
P & L account
H) RM can local 100 L) Sales 150
Wages 10 J) INC/DEC STKFG 120
Net profit 40 K) INC DEC STK FG - 120
------- -----
150 150
Integration rules
A) In material master we specify valuation class
B) For valuation class we assign GL accounts based on the nature of transaction
C) At the time of material receipt/Issue stores person enters movement type,

material number and quantity. Our accounts will be up dated automatically
based on accounts assignment to valuation class which is specified in material
master
A. Purchase Order creation:
Matereial No - RM1
Vendor No 12345
Qty 100
Rate 10 Save.
B. Raw Material Receipts : ( Against PO)
Movement type 101 Debit - BSX
Material No RM1 Credit - WRX
Qty 60 Save.
Entry in FI
Inv Raw Material Dr 600 ( 200121)
To GRIR Clearing 600 (100520)
( Qty in GR * Rates as per PO )

3. Raw Material Issues :
Movement type 201/261 Debit – GBB VBR
Material No RM1 Credit - BSX
Qty 20
Save.
Entry: RM Consumption a/c 200 (400000)
To Inv Raw materials 200 (200121)
Price differences are two types
Batch method Moving average method
-------------------------------------------------------
| | |
Stock fully available Stock partly available Stock no available
1st method –Batch method:
RM1 PO price 10 RS BILL 12Rs
1. Material Receipt
Batch Qty Rate Amount Inv RM local DR 1000 BSX
1 100 10 1000 To GR/IR CLR RM LCL/100 WRX
2 50 40 2000
150 3000
30 10 300 For RM Consumption GBB – VBB
INV Raw material BSX
--- ----
120 2700
Invoice verification
GR/IR CLRG RM LCR DR 1000 WRX (100*10)
INV Raw Material DR 140 BSX ( 70*2 )
Price deference RM DR 60 PRD (30*2)
To Vendor 1200 ( form PO vendor no. is taken)
Break up
1 70 12 840
2 50 40 2000 total value = 2840 (2700 +140)
For the truncation key PRD –We can assign raw material consumption account or price
difference RM A/c
2nd Method - Moving average method: stock fully available
RM1 PO Price : 10 Final Bill for Rs.12
Qty rate amount 1. Goods receipt
Bill qty 100 10 1000 Inv.RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM LCL 1000
---- --------
150 3000
30 20 600 RM consumption
---- -----
Available 120 2400
Consumption price :
3000/150 = 20
Next consumption rate = 2600/120 = 21.67
3. Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX
INV RM Local DR 200 BSX 100*2
To Vendor 1200 (form PO Vendor no. )
2nd Method - Moving average method: stock Partly available
RM1 PO Price : 10 Final Bill for Rs.12
Qty rate amount 1. Goods receipt
Bill qty 100 10 1000 Inv.RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM LCL 1000
---- --------
150 3000
130 20 2600 RM consumption
Available 20 400
Consumption price – 3000/150 = 20
Next consumption price 400/20 =22

INV RM Local DR 40 BSX (20*2 )
Price difference a/c 160 PRD
Incase of batch method –It has checked batch wise for the material.
In case of moving average method –if has checked material wise.
2nd Method - Moving average method: stock Not available
RM1 PO Price 10 Rs Bill for Rs12
1. Material receipt
Qty Rate Amount Inv RM local DR 1000 BSX
Bill Qty 100 10 1000 To GR/IR CLRG RM LCL 1000WRX
50 40 2000 2. Raw material consumption
---- ---- ------ RM Consume local DR 3000 GBB VBR
150 3000
150 20 3000
---- -----
AVBL Qty 0 0
Price difference a/c 200 PRD
Sales and Distribution Flow:
1. Inquiry and quotation: Sales Departments get inquiries from different customers and
Sales departments sends quotations to customers.
2. Sales order : (Sales departments raises Sales order )
Customer no, Material no, plant ,Qty, price, delivery terms, pay terms
3. Delivery : Against Sales Order
A. Delivery without PGI
B. Delivery with PGI
Sales Billing : With reference to delivery
Condition type: KOFI ( Account assignment through –FI )
KOFK ( Account Assignment through –CO)
Assignment of accounts
1 2 3 4 5 6 7 8
App area Cond type COA Sales org A AGC AAGM Acct key Gl
account
V KOFI BIL HYD 01 03 ERL 300001

V KOFI BIL HYD 02 03 ERL 300002
SD Integration rules :
01. Pricing procedure to be created for Domestic sale, Export sale, Stock transfers, and
Consignment sale.
02. Pricing procedure to be assigned for the combination of Sales organization, Distribution
channel, division, and customer pricing procedure.
03. Customer pricing procedure is assigned in customers.
04. Account assignment group for customer is assigned in customer master.
05. Account assignment group for materials is assigned in material masters.
06. For the combination of condition type /Sales org/Chart of accounts/ account assignment
group for customers/ account assignment for materials and account key – Assign GL accounts.
M CUSTOMIZATION
01.Define Plants
Path: SPRO-Enterprise structure- Definition –Logistic general-Define copy, delete check plant.
Double click on define plant
Select new entries button
Plant :BILP
Name :BIL HYD Factory plant
Factory calendar :Select B2 or 01 (B2=BIL HYD Factory Calendar)
Save (01=Standard calendar)
Give the name :BIL Hyderabad factory plant
Country :IN
Enter
Select create request button
Short description :MM customization for BIL
Press enter
Enter once again to save in the request

02.Define division:
Path :Up to logistic –General the path is same-Define copy, Delete, check division.
Double click on define division
Division :BS (It is a text filed)
Name :Steel Division
Save
Press enter to save in your request
03. Maintain storage location
Path :SPRO-Enterprise structure –Definition- materials management –Maintain storage

location (OX09)
Give the plant :BILP
Enter
Give the storage location : HYD
Description : Hyderabad storage location
Save
04. Maintain purchasing organization
Same path
Purchase organization :BIR

Description :BIL Purchase organization
Save
05. Assign plant to company code:
Path : SPRO-Enterprise structure –Assignment- logistics General –Assign plant to

company code ( Tr code is OX18)
Company code :BIL
Plant :BILP
Save
06.Assign business area to plant/valuation area and division
Path :Same path -Select plant /valuation area –Division button
Plant :BILP
Division :BS
Business area :BILH
Save
07. Assign purchasing organization to company code

Path :Up to assignment the path is same –Materials management –Assign purchasing
organization to company code
Select position button :Give the purchase org:BILR
Enter
For BILR for assign company code BIL
Save
08.Assign purchasing organization to plant:
Same path
Purchasing org :BILR
Plant :BILP
Save
09.Create purchasing groups
Path :SPRO-Materials management –Purchasing –Create purchasing groups.
Purchasing group :BIL
Description :BIL RM purchasing group

Save
Press entr to save in your request
10.Define material groups:( OMSF)
Path :SPRO-Logistic general –Material master-Settings for key fields –Define Material groups.
Material group :BILC
Material groups description :Chemicals
11.Maintain compafny code for material management:
Path :SPRO-Logistic General –Material master-Basic settings-Maintain company code for

materials management
Select position button
Give the comp code :BIL
Enter
Year : 2015
Period :
Note : This period enter carefully, if you once enter not modified
Select ABP check box (ABP stands for Allow Back Period Posting)
Note: September entries allowed
Save
Ignore the warning message press enter

12.Define attributes of material types:
Path:up to the material master the path is same – Basic settings –Material type-Define
attributes of material types.
Select material type :ROH (Raw materials)
Enter
Select ROH
Double click on quantity / Value updating folder
Valuation area :BILP ( Nothing but plant)
Enter
For BILP select quantity updating, value update check box
Save IN
Select back arrow
Select material FERT for finished product
Double click quantity / value updating folder
Valuation area :BILP
Enter
For BILP select quantity updating check box value updating check box
Save
13.Set tolerance limits for price variance for purchase order
Path: SPRO-Material management –Purchasing –Purchase order –set tolerance limits for price
variance
Select TIKY :PE & SE for company code 1000
Select copy as button
Enter the company code to BIL
For tolerance key :PE
Enter
Change the company code to :BIL
For tolerance key :SE
Enter and save

14. Plant parameters:
Path :SPRO-Materials management –Inventories management –Physical inventory –Plant

parameters
Select plant :1000
Change the plant to BILP
Enter and save
15.Set tolerance limits for goods receipt
Path :Up to inventory management and physical inventory the path is same -Goods receipt-
Set tolerance limits
Select tolerance key B1,B2,VP for company code 1000
Change the company code to BIL for B1
Enter
Change the company code BIL for B2
Enter
Change the company code to BIL for VP
Enter and save

16.Maintain default values for tax codes
Path: SPRO- Materials management –Logistics invoice verification-Incoming invoice maintain

default values for tax codes
Company code :BIL
Save
17. Set tolerance units for invoice verification
Path:Up to logistics invoice verification the path is same – Invoice block-Set tolerance limits
select tolerance key BD, ST for company code 1000
select copy as button
change the company code to BIL for BD
enter
change the company code to BIL for ST
save
18. Define automatic status change
Path :Up to the logistic invoice verification the path is same – Invoice verification in back
ground –Define automatic status change
Company code :BIL
Select save button or Ctrl+S
19.Group together valuation areas:
Path :SPRO-Material management –Valuation and account assignment-Account

determination-Account determination without wizard-Group togather valuation areas.
Valuation :BILP
Enter
Give the valuation grouping code :X
Save

20. Define valuation classes:
Path :Same path – Select valuation class button
Select valuation class 3000 Raw materials local
Select valuation class 7920 Finished products
Change valuation class 3000 to BIL1
Change the description to Raw materials local
Change valuation class 7920 to BIL2 – Finished product
Enter and save
FI consultants job:
1. Creation of GL masters FS00
A) Inventory RM local Current assets loans & advances
B) Inventory finished goods -do-
C) GR/IR clearing RM local Current liabilities & Provisions
D) RM consumption local RM Consumption
E) INC/DEC in stocks FG Increase /Dec in stocks
Give the GL account no. 200121
Company code BIL
Select with template button

Give the GL account no.200120 Inventory RM
Company code :BIL
Enter
Change the short text to Inventory RM local
Change the GL a/c long text also inventory RM local
Select control data tab
Tax category :select * (All tax allowed)
Select posting without tax allowed check box
Select create/Bank/Interest tab
Field status group change to G006 Material accounts
Save
Note :Before post select automatically only check box 200121
GL account no. :200122
Company code :BIL
Give the GL a/c no.200121
Company code :BIL
Enter
Select type/description tab
Change short text and GL a/c long text to inventory FG
Save
GL account :100520
Company code :BIL
GL account :100500 outstanding exp.
Company code :BIL
Enter
Change short text and GL account and long text to GR/IR clearing RM local
Tax category :*
Select posting without tax allowed check
Sort key :014 Purchase order
Select create /bank /interest tab
Field status group change to G045 goods/Invoice received clearing accounts
Save
G/L account :400000
Company code :BIL
Give the GL account no.400100 Salaries a/c
Company code :BIL
Enter
Select type/description tab
Change the account group to RM consumption

Change short text and GL account long text to RM consumption local
Select create /bank /interest tab
Field status group to change to G003 Material consumption accounts
Save
Select edit cost element button
Valid from :01.04.2008
Enter
Cost element category :Select 01
Save
GL account :300200
Company code :BIL
Change the GL a/c no.300100 Exchange gain
Company code :BIL
Enter
Select type/Description tab
Change account group to Increase /Decrease stocks
Change short text and GL account long text to Increase/Decrease in stocks FG
Select create/Bank/Interest tab
Change field status group to G030 change in stock accounts
Save
*Assignment of accounts for automatic postings
Path :Up to account determination without wizard the path is same – Configure automatic
postings (Tr code is OBYC) (MM to FI Integration )
Select cancel button
Select account assignment button
Double click on transaction BSX inventory posting
Give your Chart of Accounts :BIL

enter
Select valuation modifier check box
Select valuation class check box
Save
Valuation modified Valuation class Account
X BIL1 RM local 200121 Inventory RM local
X BIL2 Finished products 200122 Inventory FG
Save
Select back arrow
Double click on transaction WRX GR/IR clearing account
Select valuation modifier check box
Select valuation class check box
Save
Valuation modifier :X
Valuation class :BIL1 RM local
Account no. :100520 GR/IR clearing local
Save
Select back arrow
Double click on GBB offsetting entry for Inventory posting
Select General modification check box
Valuation modifier check box
Valuation class check box
Save
Valuation modifier General modification Valuation class Account
X VBR (consumption) BIL1 RM local 400000 RM consumption local
X ZOF BIL2 FG Goods 300200 Increase / Decrease stocks

X AUF with production BIL2 300200
X VAY BIL2 300200
X VAX BIL2 300200
Save
Document types and no.ranges (OBA7)
WE :Goods receipt
WA :Goods issue
RE :Grass invoice receipt

Tr code is OBA7
Select WE :Goods receipt
Select details button
Number rage :50
Select number range information button
Company code :BIL
Select change intervals button
Select interval button
No.range :50
Year :2015
From no. :800001
To no. :900000
Enter and save
Select back arrow 3 times
Select type WA Goods issue
Number range :49
Select no.range information button
Company code :BIL
Select interval button

No.range :49
Year :2015
From no. :900001
To no. :1000000
Enter and save
Select back arrow three times
Select RE gross invoice receipt
No. range :51
Select no.range information button
Company code :BIL
No.range :51
Year :2008
From no. :1000001
To no. :1100000
Enter and save

MM end user area
Creation of vendor master XK01
Give the company code :BIL
Purchasing organization :BILR
Account group :BIL2 MM vendors for BIL
Enter
Give the name :Nagarjuna Steels Limited
Country :IN
Select next screen button 3 times
Reconciliation account :select 100501 Sundry credit RM
Sort key :012 vendor
Select next screen button
Payment terms :0001
Select next screen button 2 times
Order currency :INR
Select GR based invoice verification check box
Save
Creation of RM material master
Path :Logistics –Materials management –Material master-material-Create(Genral) –

Immediately (Transaction code MM01)
Material :BILRM1
Industry sector :Mechanical engineering
Material type :Raw material
Press select views button
Select basic data1, purchasing, general plant data/storage1/accounting1
Select organization levels button (bottom side)
Give the plant :BILP
Storage location :HYD
Enter
Give the description :Raw material 1
Basic unit of measurement :KG
Material group :BILC (Chemicals)
Division :BS (Steel)
Select purchasing tab
Purchasing group :BIL
Select accounting one tab
Valuation class :select BIL1 (RM local)
Price control :select V moving average price
Moving price :50

To open material periods for November:
Up to material master the path is same –Other-Close period (Transaction code is MMPV)
From company code :BIL
Give the period :8 (November)
Fiscal year :2008
Select check and close period radio button
Execute
Purchase order creation
Path :Logistics – Material management –Purchasing –Purchase order-Create-

Vendor/supplying plant known (The transaction code is ME 21N)
Give the purchasing organization :BILR
Company code :BIL
Enter
Give the purchasing group :BIL
Item :10
Material :BILRM1
PO quantity :100 Kg
net price :75

Plant :BILP
Give the currency :INR
Vendor no. :2001
Save
Note the purchase order no.4500017092
Goods receipt:
Path :Logistics –Material management –Inventory management –Goods movement –Goods

receipt- for purchase order –PO number known (The transaction code is MIGO)
Select goods receipt
Give purchase order no.4500017092
Enter
Storage location select :HYD
Select quantity tab
Quantity in delivery note :100
Select item ok check box
Select display button
Enter
Select document information tab
Select FI documents button

BSX 200121 Inventory RM local 7500 BILRM1 BIL1
WRX 100520 GR/IR CLRG RM local -7500 BILRM1 BIL1
Qty .Received(GR) *Rate as per PO
100*75
Invoice verification:
Path :Logistics –Materials management –Logistics-Invoice verification –Document entry-

Enter invoice (Transaction code is MIRO)
Give the invoice date :Today’s date
Reference :Party bill no.1234
Text :Invoice verification
Purchase order :4500017092
Select payment tab
Payment terms :0001
Baseline date :today’s date
Select base data tab
Tax code :select V0
Enter
Business area :BILH
Select beside data tab
Amount :7500
Enter
Select save button or Ctrl+s

From the menu select invoice document –Display
Select follow on document button
2001 Nagarjuna Steels Limited 7500 –From party no is taken
100520 GR/IR CLRG RM local 7500 BILRM1 BIL1
Raw material consumption
Path :Logistics –Materials management –Inventory management –goods movement –

goods issue (Transaction code is MB1A)
Movement type :201
Plant :BILP
Enter
Give the cost center :Dept A
Material :BILRM1
Quantity :30
From the menu select goods –Issue display
Enter
Select accounting documents button
Select accounting document number

BSX 200121 Inventory RM local 2250-BILRM1 BIL1
GBB VBR 400000 RM consumption LCL 2250-BILRM1 BIL1
Qty consumed * moving average price
30*75
To view stock ledger
Path :Logistics –Materials management –Inventory management –Environment –Stock for

posting date (Transaction code is MB5B)
Material no. :BILRM1
Company code :BIL
Plant :BILP
Selection date :01.04.2008 to 31.03.2009
Select valuated stock radio button
Execute
SD CUSTOMIZATION
SD consultant’s job
Define sales organization
Path :SPRO-Enterprise structure –Definition –Sales and contribution –

Define,copy,delete,check,-Sales organization
Double click on define sales organization
sales organization :BILS
Description :BIL HYD Sales organization
statistics currency :INR
save, Ignore the warning message press enter
Give the name :BIL HYD sales organization
country :IN
region :AP
press enter
To save in your request

Define distribution channel
Same path -Sales & distribution –Define,copy, delete,check distribution channel
Double click on define distribution channel
Distribution channel :BD
Name :Direct sales
Save
Define shipping point
Path :SPRO-Enterprise structure –Definition-Logistic execution –Define, copy, delete, check

shipping point
Double click define shipping point
Shipping point :BISH
Description :BIL HYD shipping point
Save
Name :BIL HYD shipping point
Country :IN
Enter
Press enter once again to save in the request

Assign sales organization to company code:
SPRO-Enterprise structure –Assignment-Sales & Distribution –Assign sales organization to

company code
Sales organization :BILS
Enter
For sales organization :BILS
Assign company code :BIL
Save
Assign distribution channel to sales organization
Same path
Save

Assign division to sales organization
Same path
Division :BS
Save
Setup sales area:
Same path
Division :BS
Save
Assign sales organization –distribution channel- plant:

distribution channel :BD
Plant :BILP
Save
Define rules by sales area:
Path :Up to sales and distribution the path is same –Business area account assignment –
Define rules by sales area

enter
For sales organization :BILS
Rule select :001 (Business area determination from plant / division )
Save, press enter to save in your request
Assign shipping point to plant:
Path :SPRO-Enterprise structure –Assignment-logistic execution –Assign shipping point to

plant
Select find button
Enter :BILP
Press enter
Select :BILP
Select assign button
Select BISH check box
enter
Save
Define common distribution channels:
Path :SPRO-Sales & Distribution –Master data –Define common distribution channels
Give the sales organization :BILS
Enter
Distribution channels for condition :BD
Distribution channels for customer master :select BD
Save
Define common divisions:
Same path
Enter
Division for conditions :select BS
Division for customer master :select BS
Save

Maintain pricing procedures
Path :SPRO-Sales and distribution –Basic functions –pricing –Pricing control –Define and
assign pricing procedures
Double click on maintain pricing procedures
Select pricing RVAA01 standard
Double click on control data folder
Condition type SKTV cash discount
Condition type MWST output tax
Deselect required check box
Save
Ignore the warning message press enter to save
Define pricing procedure determination:
Upto define and assign pricing procedures the path is same
Double click on define pricing procedure determination
Division :BS
Document pricing procedure :select A standard
Customer pricing procedure :select 1 standard
Pricing procedure :select RVAA01 standard

Condition type :select PR00 price
Save
Define tax determination rules:
Path :SPRO-Sales and distribution –Basic functions- Taxes –Define tax determination rules
Tax country :IN for India
Sequence :1
Tax category :UTXJ Tax Jursdict code
Save
Setup partner determination:
Partner functions
Customer No.
SP Sold to Party 1 1 Not modifiable
SH Ship to party 1 2 Modifiable
BP Bill to party 1 2. Modifiable
PY Payer 1 2 Modifiable
If we don’t specify separately (SP,SH,BP and PY)all we be only customer
Path :Up to basic functions the path is same-Partner determination –Set up partner
determination
Double click setup partner determination for customer master

Double click on partner functions folder
Partner function :SP
Enter
Select partner function SP
Double click on account group function assignment folder
Account group :BIL2
Partner function :SH
Account group :B1L2
Partner function :BP
Account group :BIL2
Partner function :PY
Account group :BIL2
Ignore the warning message press enter to save in your request
Double click on partner determination procedures folder
Partner determination :BIL
Name :BIL partner determination procedure
Save

Select partner determination :BIL
Double click partner functions in processor folder
Select not modifiable check box
Select mandatory check box
Select partner function :SH select mandatory function check box
Select partner function :BP select mandatory function check box
Select partner function :PY select mandatory function check box
Save
Double click on partner determination procedure assignment folder
Account group :BIL2
Enter
For BIL2 Assign partner procedure BIL
Save
Assign shipping points
SPRO-Logistics execution-Shipping –Basic shipping functions –Shipping point and goods

receiving point determination –Assign shipping point
Shipping conditions :select 01 as soon as possible
Loading group :0003 manual
Plant :BILP
Propose shipping point :BISH
Save
FI consultant job:
Creation of GL master sales local own goods under sales group –FS00
Give the GL a/c no. :300005
Company code :BIL
Give the GL a/c no. :300000 sales account
Company code :BIL
Enter
Change short text and GL a/c long text local own goods
Tax category :*
Select posting without tax allowed check box
Select create /Bank /Interest tab
Field status group G029 revenue accounts
Save
Select edit cost element button
Enter
Cost element category :11 Revenues
Save
* Assignment of account for automatic postings:
Path :SPRO-Sales and Distribution –Basic function-Account assignment/costing Revenue

account determination –Assign GL accounts (Transaction code is VKOA)
Note : This is Important Tr code
Double click on table one
Application area :Select V Sales & Distribution
Condition type :KOFI account data
Chart of accounts :BIL

Account assignment group of customer :Select 01 domestic revenues
Account assignment group of material :03 Finished goods
Account key :Select ERL sales revenues

GL account :300005 sales local own group
Save
SD end user area
Creation of customer master :XD01
Company code :BIL

distribution channel :BD
Division :BS
Account group :SD customer for BIL
Enter
Name :DLF Industries Ltd
Country :IN
Region :AP
Select company code data button
Reconciliation account :200110 sundry debtors
Sort key :031 customer no.
Select payment transaction tab
Terms of payment :0001
Select sales area data button
Customer pricing procedure :select 1 standard
Select shipping tab

Delivery priority :select 02 normal
Shipping conditions :select 01 as soon as possible
Delivery plant :BILP
Select billing documents tab
Select price determination check box
In CO terms under delivery and payment terms :select EXW form plant
Terms of payment :0001
Account assignment group :select 01 domestic revenues
For Tax category UTXJ Tax classification :select 1 liable for tax
Save
Creation of finished goods material master (MM01)
Give the material :BILFG
Industry sector :Mechanical engineer
Material type :Finished product
Press select views button
Select basic data 1
Select Sales :Sales organization data 1
Select Sales :sales org.data 2
Select Sales :General /plant data
Select MRP1
Select general plant data /storage 1

Select accounting 1
Select organization levels button
Plant :BILP
Enter
Description :Finished product
Base unit of measurement :KG
Division :BS
Gross weight :1 kg
Select sales :select 1
sales :Sales org.1 tab
Division :BS
Tax classification :select 1 (Taxable)
Select sales :sales, sales organization 2 tab
Account assignment group :select 03 finished goods
Select sales :General /plant tab
Available check :select KP no check
Transportation group :select 0003 container
Loading group :select 0003 manual
Select MRP1 tab

MRP type :select ND no planning
Select accounting 1 tab
Valuation class :select BILL2 finished product
Price control :select S standard price
Standard price :400
Save
Creation condition types:
Path : Logistics –Sales & Distribution –Master data-Conditions –Select using conditions
type-create (Transaction code is VK11)
Condition type :PR00 price
Select key combination button: Select material with release status radio button
Enter
Sales organization BILS
Material :BILFG
Amount :600
Valid to :31.03.2009
Save
Select back arrow
Condition type :select UTXJ tax Jursdict code
Select key combination button

Select domestic taxes radio button
Enter
Country :IN for India
Tax classification for customer :1
Tax classification for material :1
Valid to :31.03.2009
Tax code :A0 (0% output tax)
Save
Ignore the message press enter
save in your request

SD END USER AREA
1. Creation of sales order
Path: Logistics –Sales and Distribution – Sales –Order –Create (Tr code is VA01)
Order type :select OR (Standard Order)
Distribution Channel :BD
Division :BS
Enter
Sold to party :200101
P.O.No. :1
P.O.Date :To days date
Required delivery date :Today’s date
Delivery plant :BILP
Payment terms :0001
Item :10
Material :BILFG
Order quantity :10 kg
Enter
Ignore the message press enter
Select item :10
From the menu select Goto Itemà Conditions

Select shipping tab
From the menu select Edit in complication log
We get a message document is complete ,no errors
Note the order no.11764
Production receipt :
There are two types of production receipt.
1. Production receipt without production order 2. Production receipt with

production order
MVT Type:521 MVT Type:101
Path :Logistics –Materials Management –Inventory management –Goods movement –

Goods -receipt –Other (Tr code is MB1C)
Moment type :521 (Receipt w/o production order into unrest –use stock)
Plant :BILP
Enter
Give the material :BILFG
Quantity :50
Save
Note : Check it GL A/c 200122 Inventory, select automatic posting check box
From the menu select other goods receipts Display-Enter
Select accounting document no.
BSX 200122 Inventory FG 20000 BILFG BIL2
GBB 300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOF
Qty *Standard Price
50*400
Delivery:
Path : Logistics –Sales & Distribution –Sales –Order –Sub request functions –Outbound
delivery (Tr code is VL01N)
Shipping post :BILH
Give the order no. :11764
Enter
Actual goods issue date :Today’s date
Select item :10
Select picking tab
Picked quantity :10
Select post goods issue button
From the menu select outbound delivery display

Enter
From the menu select Environment àDocument flow keep the cursor on goods issue
delivery document no. (down side in document column)
Select display document button
Select accounting document no.
Double click on accounting document no.
200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2
300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2
Qty delivered *Standard price
10*400
Sales billing
Path :Up to sub sequent functions the path is same –Billing document(Tr code is
VF01)
(Through path)
Select Delivery document no.
Execute
Save
From the menu select Billing document-Display-Select accounting button
Double click on accounting document no.
200100 DLF Industries Limited 6000 customer no.is taken from sales order
300005 Sales local own goods 6000-ERL
Qty sold *Sale price
10*600

SD and MM INTEGRATION

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SD and MM INTEGRATION

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INTEGRATION

Company Company Company

Company code Company code Company code

Segments Plants (Factory, Branch) Sales organization

Profit centers Storage locations Distribution Channel

Movement types: (Similar to posting keys in FI )

101 Material receipt against purchase order /production order

102/122 Reversal of 101

201 Issue to cost centers

202 Reversal of 201

261 Issue to orders

262 Reversal of 261

521 Production receipt without production orders.

522 Reversal of 521

561 Opening stocks taking

562 Reversal of 561

601 Delivery (sales)

a) BSX Inventory postings

b) WRX Goods receipt /Invoice receipt (GR/IR)

c) PRD Price difference /Production order differences

d) GBB Offsetting entry for inventory postings

(i) VBR Consumption

(ii) VNG Scrapping

(iii) BSA Opening stocks

(iv) ZOF Production receipt without production order

(v) AUF Production receipt with production order

(vi) VAY Delivery where sales account is created as revenue

(vii) VAX Delivery where sales account is not created as revenue

(viii) AUA production order differences

A) Raw materials purchases Local purchase

B) Stores and Spares Local valuation class - B

C) Finished goods Own manufacturing valuation class - C

Raw materials ROH V-Moving average price purchase price

Stores & spares ERSA V-Moving average price purchase price

Packing & material VERP V-Moving average price purchase price

Finishing goods FERT S-Standard price Raw materials + Overheads

Purchased V- Moving average price Purchase price

Produced S- Standard price Raw material +Overheads

Trading goods HAWA V-Moving average price Purchase price

Trading goods Purchase FG and sell FG without doing any processing.

Material types are similar to account groups in FI

For materials we can open 2 periods at a time. MMPV

Material Master Imp tabs :

A) Material requisition By production Dept to Stores

B) Purchases requisition By stores to purchases

Quality, Rate, Plant, Company code

Delivery terms, payment terms,

It will work through work flow

If P.O value is less than Rs.10000 To be released by manager purchases

If P.O value is Rs.10000 and above To be released by GM(Purchases)

And less than 100000 if P.O value is

10000 and above To be released by Director

F) Goods receipt –With reference to P.O

Inventory RM local DR 100

To GR/IR clearing RM local 100

Balance sheet current asset BSX

Balance sheet current liability WRX

(Qty in GR*Rate as per P.O)

G) Invoice verification-Against PO/GR

GR/IR clearing RM local DR 100 Balance sheet CL - WRX

To party 100 Balance sheet CL - From PO,

Party no. will be taken

RM Consumption Local DR 100 P & L GBB VBR