SAP LOGISTICS I SAP SD | Order to Cash Cycle

 SAP LOGISTICS I SAP SD | Order to Cash Cycle

SAP SD is a key module in ERP system and is used to manage shipping, billing, selling and transportation of products and services of the organisation.


I manages Customer relationship starting from raising a quotation to sales order and billing of the product or service.

Key Components in SAP SD:

• Customer and Vendor Data
• Sales Support
• Shipping of Material
• Sales Activities
• Billing 
• Transportation
• Credit Management 
• Contract Handling and management 
• Foreign Trade
• Information System

SAD SD Organizational Structure :

• Sales organization - Responsible for goods and services.
• Distribution Channel - Tells by which medium goods or services are distributed by an organization to its end users.
• Division : Represents product or service line in a single organization. 
• Sales Area : it comprises of sales org , distribution channel and division.

In SAP SD organizational structure, each sales organization is assigned to a company code. Then the distribution channel and divisions are assigned to sales organization and all of these comprise to make a sales area.

Sales Order

Link Points	Module Involved
Availability Check	MM
Credit Check	FI
Costing	CO/MM
Tax Determination	FI
Transfer of Requirements	PP/MM

Billing

Integration Point	Module
Debit A/R	FI/CO
Credit Revenue	FI/CO
Updates G/l (Tax,discounts,surcharges,etc)	FI/CO
Milestone Billing	PS

Goods Delivery and Issue of goods

Integration	Module
Availability Check	MM
Credit Check	FI
Reduces Stock	MM
Reduces Inventory	FI/CO
Reduces Eliminated	PP/MM

Master data in SD: 

• Customer Master - 
• Key Tables 

  Table Name	Key	Description
  KNA1	KUNNR	General Information
  KNB1	KUNNR,BUKRS	Company Code
  KNVV	VKOGRG,VTWEG,SPART,KUNNR	Sales Area
  KNBK	KUNNR,BANKS,BANKL,BANKN	Bank Data
  VCNUM	CCINS,CCNUM	Credit Card
  VCKUN	CCINS,CCNUM,KUNNR	Credit Card Assignment
  KNVK	PARNR	Contact Person
  KNVP	VKORG,VTWEG,SPART,PARVW,KUNNR	Partner Functions

• Key Transaction Codes :

  S.No	Transaction Codes & Description
  1	XD01, XD02, XD03 Used to create/change/display customer centrally
  2	VD01,VD02,VD03 Used to create/change/display customer sales area
  3	FD01,FD02,FD03 Used to create/change/display customer company code
  4	XD04 Display change documents
  5	XD05 Display change documentsUsed to block Customer − Global, order, delivery, billing, sales area, etc.
  6	XD06 Used for deletion
  7	XD07 Change Account Group
  8	VAP1 Create Contact Person

• Creation of Customer Master : To create a customer master data, you need to use an Account group
• XD01 (customer )/VD01 (Sales Area )/FD01 (Company Code):
• Creation of Partner Function (VOPAN) : Partner function allows you to identify which functions a partner has to perform in any business process. 

• Partner Type	Partner Function	Entry from System	Master Record
  Customer(CU)	Sold-to Party(SP) Ship-to Party(SH) Bill-to Party(BP) Payer(PY)	Customer number	customer master record
  Vendor(V)	Forwarding agent(fwdg agent)	Vendor number	Vendor master record
  Human Resource(HR)	Employee responsible(ER) Sales Personnel(SP)	Personnel number	Personnel master record
  Contact Person(CP)	Contact Person(CP)	Contact Partner number	(created in customer master record,no master record of its own)

• Create Material Stock : MB1C : Movement Type: 561 this is for Good receipts without reference.
  Movement Type: 501 − this is used for receiving goods with a Purchase Order.

SAP SD - Customer Account Groups :

Group	Name
X001	Domestic Customers
X002	Export Customers
X003	One Time Customers

Go to SPRO → SAP Reference IMG → Financial Accounting → AR and AP → Customer Accounts → Master Data → Preparations for creating customer master data → Define Account Groups with screen layout (Customers) → Execute

 :

======================================================

Pre SAles Activiteis :

• Inquiries  : from customer : VA11 - Create Inquiry
• Quotation :  legal document to the customer - VA21 .

Sales Order Processing in SAP SD :

• Availability Check of the article purchased
• Checking for incomplete data
• Checking for pricing and taxes
• Schedule the deliveries of goods

Creation of Sales Order :

• Different order type available :

• CR	Credit Memo
  GK	Master Contact
  KA	Consignment Pick-up
  KB	Consignment fill-up
  KE	Consignment issue
  FD	Delivery free of charge
  CQ	Quantity contract
  SD	Subsequent Del. Free of charge
  KR	Consignment returns
  DR	Debit memo request
  PV	Item Proposal
  RE	Returns
  RK	Invoice correction request
  RZ	Returns scheduling agreement
  SO	Rush order
  OR	Standard Order

• There are four types of sales documents that can be defined in SAP. To define a sales docuemnt use transaction VOV8.

1. Credit Memo (VF03)
2. Debit Memo
3. Standard Order
4. Delivery Returns

SAP SD Item Categories VOV4:

• Used to define if an item is suitable for pricing or billing.

  Categorization	Description of an Item
  TAN	Standard Item
  TAB	Individual Purchase Order
  TAS	Third Party Item
  TAD	Service
  TANN	Free of charge item
  TATX	Text item
  AFX	Inquiry item
  AGX	Quotation item

Schedule lines :  VOV6

•  

Copy Control : is defined as a processing which important transactions from one document to other,

• You can also use the following T-Codes to find copy controls in a system −
• VTAA − This control is used for copying from sales order to sales order
• VTLA − This control is used control for copying from sales order to delivery
• VTFL − This control is used control for copying from delivery to billing doc
• VTFF − This control is used control for copying from billing doc to billing doc
• VTAF − This control is used control for copying from billing doc to sales order
• VTFA − This control is used control for copying from sales order to billing doc
• VBUK and VBUP (field RFSTK and RFSTA )

SAP SD PRICING : VVIMP

• used to define the calculation of prices for external vendors or customers and cost. This condition is defined as a set of conditions when a price is calculated.

SAP Pricing

Pricing in Sales and Distribution is used to define the calculation of prices for external vendors or customers and cost. This condition is defined as a set of conditions when a price is calculated.

SAP Condition Record and Table

To identify a special condition record.

A condition record specify how systems stores the specific condition.

Example of a condition record - Entering the price of a product or to specify the discount for a privileged customer.

Example of a condition Table – 005.

-          Customer

-          Material

-          Sales organization

-          Distribution Channel

S.No	Condition Type & Description
1	PR00 Price
2	K004 Material Discount
3	K005 Customer-specific material discount
4	K007 Customer discount
5	K020 Price group discount
6	KF00 Freight surcharge(by item)
7	UTX1 State tax
8	UTX2 Country tax
9	UTX3 City tax

Condition Type->Access Sequence->Condition Record->Procedure

https://help.sap.com/saphelp_erp60_sp/helpdata/en/bc/8dc95360267214e10000000a174cb4/content.htm?frameset=/en/28/97bd53d34ab64ce10000000a174cb4/frameset.htm&current_toc=/en/39/31b853dcfcb44ce10000000a174cb4/plain.htm&node_id=9

SAP SD - Listing, Determination & Exclusion

Listing − you can create a material list for specific customers, which allows those customers to order only those materials which are maintained in the list.

Exclusion (VB01) − you can also maintain an exclusion record for specific customers and this doesn’t allow that customer to order those materials.

Order type – RE and FD and CF. (Return Delivery and Free of Charge Delivery and Consignment fill up).

Schedule line Category – VOV5 and VOV6.

Inbound Delivery – VL31N.

SAP SD – Shipping

In the shipping process, there are a few key sub processes, which include −

-          Delivery processing of the goods

-          Picking of items

-          Packing of the goods

-          Post goods issue

-          Shipping communication

-          Planning & monitoring of shipping

-          Other functions like batch determination, serial numbers, inspection, etc.

SAP SD Outbound Delivery:

• -           SAP SD - PICKING , PACKING and PGI
• - Picking is done via a transfer order which is used for picking list and withdraw goods from stock.
• Three Types of picking :
1. Picking of goods individually
2. picking as per defined intervals
3. Automatic picking in SAP SD
• Packing is done with the packing material and to be created as material type 'VERP'.
• PGI is the last step in delivery processing and in this goods ownership is moved to the customer and stock is updated as per delivery. 
• Creating an outbound delivery - VL01N
• Creating Picking Request - LT03
• Create Packaging - VL02n-> Pack 
• Creating PGI- VL02n->PGI
• PGI Creates two documents:
• Material Document
• Accounting Document

Billing Documents:

• VF01
• VF11 - Cancel a billing doc
• Vf05 - List all billing doc
•