SAP SD Certification (C_TSCM62_66) Preparation Training Notes

SAP SD CertificationHandbook
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A few points about this Document:
 Being a SAP SD Certified Consultant, I feel journey for SAP certification not only build the foundation stone of
SAP basic knowledge but also help to develop the fundamental logic behind the application.
 This document tried to touch each nook and corner about SAP SD Certification areas and to get a good score
in Certification exam.
How to Use this document?
 First of all, this document doesn’t have any connection or guarantee any kind of success in SAP Certification.
This document also doesn’t have any kind of authorization from SAP. Having said that, this document will
definitely help you in the attached following areas:
1. This document can be treated as good reference points to remember all the important topics in SAP SD
Certification exam.
2. After completion of SAP SD Certification exam SD topics (which are prescribed by SAP) in its SAP Certification
documents (Like TSCM 60 and TSCM 62), this document will definitely help a candidate to revise all the topics
in a quickest possible time.
If any case you find any wrong/ incorrect statement please send an email note to basuari@gmail.com. I will
definitely take care of the same.

CONTENTS
ENTERPRISE STRCTURE.........................................................................................................................................................................................8
CLIENT (Company)- ...........................................................................................................................................................................................8
Company Code...................................................................................................................................................................................................8
Sales Organization.............................................................................................................................................................................................9
Distribution Channel.........................................................................................................................................................................................9
Division..............................................................................................................................................................................................................10
Sales area..........................................................................................................................................................................................................11
Business area ...................................................................................................................................................................................................12
Plant...................................................................................................................................................................................................................13
Shipping Point..................................................................................................................................................................................................13
Warehouse.......................................................................................................................................................................................................15
Relationships among the different Org Units: ...........................................................................................................................................16
MASTER DATA................................................................................................................................................................................................17
Customer master Data ...................................................................................................................................................................................17
Account group .................................................................................................................................................................................................20
Customer material information record.......................................................................................................................................................21
Material master data......................................................................................................................................................................................21
Sales Document ...................................................................................................................................................................................................22
Example of Sales document Type ..............................................................................................................................................................22
Important Controls of Sales Document Type. ............................................................................................................................................23
Functions of Sales Documents:.....................................................................................................................................................................24
Sales document Item category ....................................................................................................................................................................25
Example of Sales document Item category ................................................................................................................................................25
Important Controls of Sales Document Item category.............................................................................................................................25
Item Category Determination-......................................................................................................................................................................26
Schedule line category ...................................................................................................................................................................................27
Bill Of Materials...............................................................................................................................................................................................27
Availability check ..............................................................................................................................................................................................28
Backorder processing .....................................................................................................................................................................................29
Shipment or Delivery scheduling.................................................................................................................................................................29
Assembly processing [Make to Order].............................................................................................................................................................30

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Make to Order WITH ASSEMBLYPROCESSING- ..........................................................................................................................................30
Output ...................................................................................................................................................................................................................31
Different Output Types ..................................................................................................................................................................................31
Output Determination Level & Assignment in Sales.................................................................................................................................31
Complaints processing ...................................................................................................................................................................................32
Sales information system...............................................................................................................................................................................32
Online List-........................................................................................................................................................................................................33
Work List-..........................................................................................................................................................................................................33
Standard Analysis:-..........................................................................................................................................................................................33
Flexible Analysis:-............................................................................................................................................................................................34
Data flow..............................................................................................................................................................................................................34
Special Business transaction .......................................................................................................................................................................35
Rush sale...........................................................................................................................................................................................................35
Cash Sale...........................................................................................................................................................................................................35
Consignment processing ...............................................................................................................................................................................36
Delivery free of charge and subsequent deliveries...................................................................................................................................36
Partner Determination .....................................................................................................................................................................................37
Partner Determination Assignment:............................................................................................................................................................38
Incompleteness .................................................................................................................................................................................................38
Incompleteness Log Function .......................................................................................................................................................................38
Outline agreement............................................................................................................................................................................................39
Schedulingagreement....................................................................................................................................................................................39
Contracts...........................................................................................................................................................................................................39
Material Determination....................................................................................................................................................................................40
Listing................................................................................................................................................................................................................41
Exclusion...........................................................................................................................................................................................................41
Free Goods.........................................................................................................................................................................................................42
DELIVERY ..........................................................................................................................................................................................................43
Logistics Execution ..........................................................................................................................................................................................43
Structure Delivery document........................................................................................................................................................................44
Delivery type control ........................................................................................................................................................................................45
Delivery item category controls....................................................................................................................................................................45

Route determination ........................................................................................................................................................................................46
Shipment or Delivery scheduling.................................................................................................................................................................46
Backward scheduling-.....................................................................................................................................................................................47
Forward scheduling-...............................................................................................................................................................................47
Precise scheduling...........................................................................................................................................................................................47
Daily scheduling: - ...........................................................................................................................................................................................47
Shipping Point Determination Change:.......................................................................................................................................................48
Picking location / storage location determination: - MALA, RETA, MARE ...................................................................................48
Options for creating Outbound Deliveries ................................................................................................................................................48
Delivery due list...............................................................................................................................................................................................49
Shipment...........................................................................................................................................................................................................49
Out bound delivery monitor..........................................................................................................................................................................49
Transfer order..................................................................................................................................................................................................50
Lean Warehouse Management ...................................................................................................................................................................50
Batch management setting-..........................................................................................................................................................................50
Serial number.....................................................................................................................................................................................................51
Shipping related condition .............................................................................................................................................................................51
Delivery split.......................................................................................................................................................................................................51
Packing.................................................................................................................................................................................................................52
Packing control-...............................................................................................................................................................................................52
Goods issue........................................................................................................................................................................................................53
Effect after goods issue-.................................................................................................................................................................................53
Cancel goods issue..........................................................................................................................................................................................54
Quality management .......................................................................................................................................................................................54
POD settings ......................................................................................................................................................................................................55
TAB PAGES IN DELIVERY DOCUMENT..........................................................................................................................................................55
More Functions of Delivery:..........................................................................................................................................................................55
PRICING..............................................................................................................................................................................................................56
VARIOUS COLUMNS IN PRICING PROCEDURE (RVAA01) .........................................................................................................................56
Condition records .............................................................................................................................................................................................56
Pricing report...................................................................................................................................................................................................57
Condition indexes............................................................................................................................................................................................57

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Condition table................................................................................................................................................................................................57
Release procedure..........................................................................................................................................................................................58
Access sequence..............................................................................................................................................................................................58
Condition type.................................................................................................................................................................................................58
Header condition (..........................................................................................................................................................................................59
Special pricing functions ................................................................................................................................................................................59
• Group condition....................................................................................................................................................................................59
• Group condition with varying key/s ..................................................................................................................................................59
• Condition update:.................................................................................................................................................................................59
• Condition supplements:.......................................................................................................................................................................59
Condition exclusion.........................................................................................................................................................................................59
Special condition type .....................................................................................................................................................................................60
Manual pricing: - .............................................................................................................................................................................................60
Minimum price:...............................................................................................................................................................................................60
Interval scale (PR02)- Scale pricing..............................................................................................................................................................60
Rounding Diff: -................................................................................................................................................................................................61
Customer Hierarchy Pricing ..........................................................................................................................................................................61
Settings-............................................................................................................................................................................................................61
Discount and surcharges................................................................................................................................................................................61
Statistical condition type.................................................................................................................................................................................62
Update price.....................................................................................................................................................................................................62
Calculation type...............................................................................................................................................................................................62
Pricing procedure............................................................................................................................................................................................62
Pricing procedure determination-................................................................................................................................................................63
Condition type.................................................................................................................................................................................................63
Pricing type.......................................................................................................................................................................................................63
Tax determination.............................................................................................................................................................................................64
Sales deal and promotion ..............................................................................................................................................................................64
Rebate processing ...........................................................................................................................................................................................64
Step rebate processing: -...............................................................................................................................................................................65
Retroactive rebate agreements ....................................................................................................................................................................66
Requirements...................................................................................................................................................................................................66

Billing overview..................................................................................................................................................................................................66
Controlling the billing process ......................................................................................................................................................................67
Billing type control..........................................................................................................................................................................................67
Billing Types:....................................................................................................................................................................................................68
Invoice combination and Invoice split ........................................................................................................................................................68
Invoice list: - .....................................................................................................................................................................................................68
Data flow and coping control ........................................................................................................................................................................69
Special billing type............................................................................................................................................................................................70
Credit and debit memos:...............................................................................................................................................................................70
Invoice correction request: ...........................................................................................................................................................................70
Returns ..............................................................................................................................................................................................................71
Pro forma invoice............................................................................................................................................................................................71
Cash sale...........................................................................................................................................................................................................71
TAB PAGES FOE BILLING DOCUMENT................................................................................................................................................73
• Header - ..................................................................................................................................................................................................73
• Item –......................................................................................................................................................................................................73
Special business transactions ......................................................................................................................................................................73
Billing plan-Periodic billingand Milestone Billing .....................................................................................................................................73
Periodic Billing.................................................................................................................................................................................................73
Milestone billing: - ..........................................................................................................................................................................................74
Down payment processing in SD................................................................................................................................................................74
Installment Payments......................................................................................................................................................................................75
Account determination ....................................................................................................................................................................................75
Criteria for account determination-.............................................................................................................................................................75
SD/FI interface...................................................................................................................................................................................................76
Copy control. ......................................................................................................................................................................................................77
Text Control ........................................................................................................................................................................................................77
System Modification: .......................................................................................................................................................................................78
SAP Solution Manager ...................................................................................................................................................................................78
Solution Manager Definition.........................................................................................................................................................................78
Why Solution Manager ..................................................................................................................................................................................79
ASAP Methodology..........................................................................................................................................................................................79

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SAP IMG (Implementation Guide (IMG) ...................................................................................................................................................81
Appendix 1............................................................................................................................................................................................................81

ENTERPRISE STRCTURE
CLIENT (Company)-
A client is a self-contained technical unit. A client can be considered to be a synonym for group.
COMPANY CODE
• A complete Accounting unit can be representing as the smallest organizational unit of external
accounting.
• At Company Code level we create
1. Balance sheet required by law
2. Profit and Loss statement.
• Each company code represents an independent accounting unit. Several company codes can use
the same chart of account.
Assignment
• (FM Area is
organizational
unit which Plans,
Controls and Monitors funds and commitment budgets)
 Controlling area to financial management area
 Controlling area to Operating Concern.
Company Code
1. Company
2. CCA
3. Controlling Area
4. Plant
5. Sales Org/Distribution
Channel

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SALES ORGANIZATION
• The highest-level of organizational unit in SD is Sales Organization.
• Responsible for
1. Distributing goods and services,
2. Negotiation sales conditions,
3. Product liability and other customer rights of recourse.
4. Performs each business transaction.
• Sales organization is also used to take for example a regional, national or international.
• A sales organization assigned to a company code.
• A sales organization is the organizational element in Logistics that represents the company
structure according to its sales and distribution requirements.
DISTRIBUTION CHANNEL
• Distribution Channel represents strategies to distribute goods and services to customer.
• DC is assigned to a sales organization. The assignment is not unique.
• You can share Customer, Material and Condition master data by maintaining a
reference/common DC.
• Multiple division can’t be shared by Common Division.
• The items in a delivery can belong to different distribution channels.
• All the items in a billing document belong to one distribution channel.
• You can determine sales offices for a distribution channel.
• You can define your own sales document types for a distribution channel.

DIVISION
• A Division is used to group material and services. A material can have only one Division.
• We can make Customer- specific agreements for each Division, for example regarding partial
deliveries or pricing within Division. (In CMIR)
• You can share Customer and Condition master data by maintaining a reference/common
Division.
• A Division is assigned to a sales organization. The assignment is not unique.
• You can use cross division to enter multiple materials with various divisions in a sales order.
• You can choose division specific sales, it is controlled by customizing for sales document type.
• You can define sales offices for a division.
• You can determine that all the items in a sales document belong to the same division for each sales
document type.
• The items in a delivery or billing document can belong to different divisions.
• You can use the division as a selection criterion for listing sales documents and creating a delivery
work list.

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SALES AREA
• A Sales areais a combination of a Salesorganization, DC and Division.It defines the Distribution
channel of a Sales organization uses to sell products of certain Division
• By defining and assigning Sales Organization, DC and division a Sales area not automatically
formed, you have to set up a sales area.
• A sales area can belong to only one company code. Assigning the sales organization to
company code creates this relationship.
• Each sales and distribution document is assigned to exactly one sales area. This assignment
cannot be changed.
• Various master data depending on the sales area, for example customer master data, material
master data, price and discount. This system also carries out a number of checks concerning the
validity of certain entries according to the sales Area.
• Sales area assigned to Credit Control Area.
• Sales office assigned to Sales Area

• Sales group assigned to Sales office.
• Employee of a sales office can be assigned to sales group.
BUSINESS AREA
• The Business Area is a separate business unit for which internal reporting can be carried
out. A company code may be divided into multiple business areas. A business area may also be
shared by several company codes.
• Business area is not limited by company codes. For this reason, the business areas in all company
codes must have the same description. Using organizational unit is optional.
• Business area can be used to prepare balance sheets and profit and loss statements not only for
company code, but also for other internal areas (E.g., division-related).
• The relevant business area is determined for each order item according to defined rule.
• Rules for Business area determination
1. Business Area assignment by Plant and Item division. (Who deliver what?)
2. Business Area assignment by sales area. (Who Sells?)
3. Business Area assignment by Sales Organization and D.C,Item Division. (Who sells what?)

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PLANT
• The Plant is a location where material is kept. Represent a production facilities or Material
requirement planning in the System. In sales and Distribution, A Plant represents the location
from which Materials and Services are distributed and corresponds to a distribution center. The
relevant material stocks kept here.
• A Plant assigned to a company code.
• Inventory valuation is done either at company code level or Plant level, however the stock is
managed at Storage location level.
• A Delivering plant assigned to Combination of Sales organization and Distribution channel.
• Plant is a Central location for SD.
• Delivering Plant Determination in sales Document according to following step
1. CMIR
2. Customer Master-Ship to Party (Sales area- shipping tab page)
3. Material Master- Sales Org. 1 View.
 CMIR has precedence over customer and material master.
 A plant is essential for determine the Shipping Point.
In absence of a Delivering plant determination there can be no automatic determining of shipping point or
automatic tax determination, no availability check can be carried out and no outbound delivery can be set
up.
SHIPPING POINT
• Shipping Point highest organizational unit in Shipping. A shipping point is under client level.
• A shipping point assigned to a Plant. A Shipping point can be assigned to multiple plants. Various
Shipping point can be assigned to same plant.
• The Shipping point can be a loading ramp, a mail depot or a rail depot. It can also be a group of
employees responsible only for organizing urgent deliveries.
• The shipping point is responsible for processing shipping. Each Outbound Deliveryis processed
by exactly ONE shipping point.

• The shipping point is normally determined automatically (At item level) for each item in the sales
document. The automatic default value can be later changed manually in sales order if we have
planned for a different shipping point. We can change shipping point in delivery document only at
initial create screen before saving the delivery document.
• Shipping point determination based on these combinations.
1. Delivering Plant
2. Shipping condition- Sales document type OR Customer master data-Sold to Party
(Shipping Tab Page)
3. Loading group-Material master data (Sales: Gen/plant)
 Shipping condition from sales document type has precedence over that from customer master.

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WAREHOUSE
• Warehousehaving following organizational units for efficient processing of goods receipt and goods
issue.
 Warehouse Number: The entire warehouse structure is managed under one warehouse
Number. This number represents the warehouse complex.
1. Warehouse Number assigned to a combination of Plant and storage location.
2. You can group Transfer Order based on warehouse number.

 Storage Type: The different warehouse areas, which differ with respect to their organizational
and technical features, are defined as storage types (for example-high-rack warehouse with
random storage, picking warehouse with fixed bins, or shipping area).
 Picking area: Below the storage Type level, The Picking area group together storage bins from
a picking point of view.
1. A delivery can be split up into different picking areas to make parallel picking possible.
 Staging area: The staging area is a part of the warehouse where goods are stored immediately
after unloading or shortly before loading.
 Door: A Door can be used for both the inbound and outbound delivery of goods.
(Door determination takes place at the delivery header level. Staging area determination can take place
at the delivery header level and item level.
Different staging area at the delivery item level lead to a transfer order split because the staging area is
a header level in the Transfer Order.)
• The connection of the organizational unit in the warehouse to MM Inventory Management results
from The Assignment of Warehouse No. To a combination of plant and storage location.
• You can Group Transfer order based on the warehouse number.
• Difference between Lean Warehouse and WarehouseManagement is NO fixed storage bin in Lean
Warehouse level is maintained.
RELATIONSHIPS AMONG THE DIFFERENT
ORG UNITS:
 Company Code to Sales Organization: One to Many
 Sales Organization to Distribution Channel: Many to Many
 Plant to Company Code: Many to One. In Intercompany: Many to Many
 Plant to Shipping Point: One to Many. Many to many if in one geo area.
 Plant to Sales Organization: Many to Many

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MASTER DATA
Customer master data, Customer material information record, material master data, Condition
master, Common master, Additional master data.
CUSTOMER MASTER DATA
• The Customer Master data divided in following categories.
1. General Data: store centrally-Client specific, valid for all organizational Units. And also for
independent to all org units.
2. Sales Area data: Only for Sales Org and Distribution Channel.
3. Company Code data: Only for Co Code.
• It includes all necessary data for processing Order, Deliveries, invoices and Cust. Payment.

 General data having on following tab
1. Address: Name, Address, and Language.
2. Control Data: Tax Information
3. Payment Transaction: Bank Details
4. Marketing:Industry, Customer Classification
5. Unloading Point: goods receiving Hours
6. Export Data: Data for export control
7. Contact Person:Address of business partner
 Sales Area data having following tab pages.
1. Sales:Sales office, sales district, currency,customergroup, Customerpricing procedure, Price
list.
2. Shipping: Delivery, Shipping condition, Delivery Plant, PODRelevance, Partial delivery Check
Complete delivery by law, Transportation Zone.
3. Billing: Incoterm, Term of payment, Credit control area, Account Assignment Group, Tax.
Customer Master
General Data Company Code Data Sales Area
Client Specific data
Company Code
Specific Sales area specific

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4. PartnerFunction: (Can differentorIdentical) Sold to Party, Ship to Party, Bill to Party, Payer
 Company Code data having on following tab
 Account management: Reconciliation account
 Payment transaction: Payment method
 Correspondence:Dunning Procedure, Accounting clerk
 Insurance: Amount Insured
• Any changes in the customer master do not get reflected in documents created prior to the change
except for ADDRESS.
• Sales organization has to maintain own relevant sales area data if they sell product to customer
those belong to different sales organization.
• We can maintain the INCOTERM in customer master record in various ways, depending on the
sales area data.

ACCOUNT GROUP
1. The account group specifies:
2. Which entries in the master record are required or optional (field selection)
3. The number range for the customer account number Whether the number is assigned by the user
or the system
a. (external or internal number assignment)
b. Whether or not the account is a one-time account (conto pro diverse)
4. Which output determination procedure is used
• Master data proposal in sales document-
1. Delivery date and tax information- From Ship to Party master record
2. Payment terms, Credit limit check- From Payer master record
3. Address to which invoiced to send - From Bill to Party master record Shipping conditions,
Pricing, incoterms-From Sold to Party .
Source of Information for Sales Order:
1. Master Data (Customer Master, Material Master, Customer-Material Info etc.)
2. Existing Documents
3. Hard coding
4. Customization
When you enter a sales order, you don’t need to specify the sales area immediately. If you don’t,
the system automatically derives the sales area from the sold-to party.
 Item Division (In VOV8): If you mark this field, the system proposes the division from the material
master record of the item.
If you leave the field blank, the division in the document header also counts for all items.

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CUSTOMER MATERIAL INFORMATION
RECORD
• Cross reference from your customer’s material no. to your material and customer material
description. By this sales order can be placed with the customer’s material no. by using Ordering
tab page
• It keeps information about Delivering plant, Customer material no. and Delivery agreement
Complete/Partial
MATERIAL MASTER DATA
 Basic data 1 (valid all module area)-Old Material no., Division, Material group, Material group
packaging material, Base unit of measure, General item category group
 Sales: sales org. 1: Delivering Plant, Material Group, Division, Condition, Tax data, Cash discount,
Minimum Order quantity, Minimum Delivery Quantity
 Sales: sales org. 2: Material group, Bonus Group, Product hierarchy, General item category group,
Item category group, Product attribute
 Basic data is relevant to all areas. It is maintained independently of the organizational units.
 Data for Sales: Sales Org.1 and Sales: Sales Org.2 and the sales text is valid for the sales organization
and distribution channel. Sales: General/Plant data and the Foreign Trade: Export data is valid for the
delivering plant.

SALES DOCUMENT
• A sales Document has three level-Header, Item and Schedule Line
• When you create a sales document, you can also enter the Ship to party instead of sold to Party.
The system then determines the Sold to Party from the ship to party customer master record. If there
are several possible sold to parties for ship to party, the system displays a selection screen with
possible alternatives.
• In sales order with fast change option you can change – Reason for rejection, Deliveryblock,
Billing block, deliverydate, deliverypriority and Plant.
• With Mass change option in a sales document list you can change- Plant, Materials, currency and
Pricing.
• A Billing Block can assigned at sales document header level and item level.
• A deliveryblock can assigned at sales document header and schedule line level.
• An item status is deemed completely if it has rejected bygiving a reason of rejection.
EXAMPLE OF SALES DOCUMENT TYPE
 Pre-sale phase
IN = Inquiry
QC = quantity Contract
QT = quotation
 Out Line agreement
DS = Scheduling Agreement
QP = Rental Contract
WK1 = General value contract
 Sales Phase
OR = Standard order
RO = Rush order FD = Free of charge delivery CS = Cash sales
 Complaints
RE = Returns CR =Credit memo request
SDF = Free of charge subsequent delivery CF = Consignment fill-up DR= Debit memo request
• Sales Document Types-
1. Standard Order.
2. Cash Sales
3. Rush Order

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4. Credit/Debit Memo Request (
DR/CR)
5. Consignment
6. Contracts
7. Free of Charge Delivery
8. Returns
 The standard systems features wide range of different sales document types for sales processes that
are carried out on a regular basis:
 Standard order for invoiced sales on fixed delivery dates.
 Rush order and cash sales for sales from the plant (with or without invoice).
 Free deliveries for sales on fixed delivery dates (without invoice).
 Returns for return goods (credit memo/replacement delivery).
IMPORTANT CONTROLS OF SALES
DOCUMENT TYPE.
 Reference mandatory from any other Document.
 Check division-System reaction if division at item level is different from header level.
 Item Division- If you mark this field, the system propose the division from the material master
record of the item else the division in the sales document header also count for all items.
 Check credit limit
 If the system reads any CMIR or Not.
 Incompletion Procedure Assignment.
 Document Pricing Procedure.
 Message about open Quotation, open Outline agreement, etc.
 Incomplete message switch- when ticked doesn’t allow you to save an incomplete document.
When unchecked the incompleteness is controlled by status groups of Incompletion Log.
 Deliverytype.
 Deliveryblock
 Shipping conditions
 Immediate deliveryswitch
 Billing plan type

 Billing Type
 Billing Block
 You can limit the validity of your sales document type at the level of sales organization,
distribution channel and division (i.e. for sales area).
 Profitability Calculation:
The probability (expressed as a percentage) of the customer confirming the inquiry or quotation as
part of a sales order.
FUNCTIONS OF SALES DOCUMENTS:
1. Availability Check
2. Text
3. Delivery Scheduling
4. Message
5. Pricing
6. TOR
7. SIS
8. Credit Check.

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SALES DOCUMENT ITEM CATEGORY
EXAMPLE OF SALES DOCUMENT ITEM
CATEGORY
AT = Inquiry schedule line BN = quotation Schedule line without MRP CV= scheduling agreement with
consumption-based MRP
Sales Phase CP = Order schedule line with MRP Complaints DN = Schedule line in Returns without MRP
CO = Consignment issue without availability check DO =Consignment returns
Pre-sale phase
AFN = standard item Inquiry
KMN = standard item in quantity contract
AGTX = Text item in quotation
Out Line agreement
WVN = Standard item in maintenance contract WKN = item in value contract
Sales Phase
TAN = Standard item TAD = Service in standard order KEN = standard item in consignment issue
Complaints
REN = Returns standard item
G2TX = Text Item in returns
BVNN= Free of charge item in cash sale KLN = Free of charge item
IMPORTANT CONTROLS OF SALES
DOCUMENT ITEM CATEGORY
 Business item-If the Business item at item level can be different from that at header level (For
example- Sales data, Shipping data, Billing data).
 Completion Rule- The rule for establishing when a quotation or contract is complete.
 Special Stock indicator- For Ex- Consignment stock.
 Billing plan type
 Billing relevance- Order related, Delivery related, etc.
 Billing block

SAP SD IMP NOTES
 Schedule line allowed- Indicates whether you can create schedule line for the item.
 DifferentProcedures-Incompletion,Partnerdeterminationandtextdetermination.
 Structure Scope for BOM
 Pricing- Indicates whether the system automatically carries out pricing at the item level.
 Automatic batch determination
ITEM CATEGORY DETERMINATION-
Sales Document type + Item category group + Usage + Item category of upper level item.
• A Sub Item is an item assigned to a higher- level item.
• An item category can influence, for example:
1. Whether the system runs automatic pricing
2. Whether the item appears on an invoice
3. Which fields are recorded in the incompletion log if they were not entered in the order.
4. Which partner functions belong to the item
5. Which text types belong to the item
6. Whether the item appears on a delivery
7. Whether you can create schedule lines for the item

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SCHEDULE LINE CATEGORY
Controls-
• Delivery Block
• Movement type-
• If the material relevant for delivery.
• Transfer of requirements
• Availability Check
• Movement type in normal-PGI-601
• Movement type in returns-651
• Schedule line cat. Determination-sales doc. item categories + MRP (MRP 1- Mat. master)
• A Purchase requisition for purchase order can be generated automatically from sales order.
• You can deactivate requirements of transfer (MRP) and availability check at schedule line level.
BILL OF MATERIALS
• The item in BOM are controlled in sales order differently by Sales document Item Categories
• All Items in the bill of material (BOM) that you want to control in the sales document must be flagged
as relevant for sale. Hence you should create a BOM material with BOM usage 5 (SD), all the items
in bill of material will be automatically flagged as relevant to sales.
• The BOM appears in the sales document as a structure with main item and sub-items. The system
explodes the BOMs in the sales order by automatically generating sub-items for the components.
• To determine how far the BOM should be exploded in the sales document, you need to define the
extent of the structure of the item category for the main item. When you determine the sub-items, the
system also needs to know the item category of the higher-level item.
Block Type
Header
Level Item Level Schedule Line Level
Delivery Block Yes no Yes
Billing Block Yes Yes no
Delivery Relevance Yes
Billing Relevance Yes

SAP SD IMP NOTES
• Item category group in Material Master for main item –ERLA, Main item is priced and sub item is
not priced. Item category of main item- TAQ and Sub Item-TAE
• Item category group in Material Master for main item –LUMF, Main item is not priced and
sub item is priced. Item category of main item- TAP and Sub Item-TAN
• Header level (Main item level – If the product is assembled
• Item level(Component level-If the product is not assembled )
AVAILABILITY CHECK
• An Availability check is carried out during sales order processing.
• An availability check occurs if-
1. The Material requires an availability check-in material master (Gen./Plant or MRP 3)
2. The Material availability checks in customizing-Delivery item Categories and Schedule line
categories.
• Availability is checked on material availability date. The material availability date is determined
from deliveryscheduling, on this date enough material has to be available in time for delivery to the
customer for their requested date.
• In Customizing, you can configure which inward and outward movements are to be considered in
availability check.
• Communication between sales and distribution and Procurement is carried out via requirements.
• The transfer of requirements type can be influence the availability check.
• Any agreements made with customer about deliveries also affect the result of the availability check.
Example-complete/partial deliveries.
• The indicator for controlling complete/partial deliveries is proposed from the customer master
records. The proposal for the item level comes from the customer-material information record, if
a customer and material agreement maintained there. These indicators can be changed manually
during order entry.
The availability check includes-
1. Current stock
2. Inward movement
3. Outward movement

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P a g e 29 | 81
BACKORDER PROCESSING
• An order item is backdated if
1. The quantity of an order item is NOT totally confirmed.
2. The request delivery date for an order item cannot be kept.
• There are two type of backorder processing
 Manually- From list sales order processes them manually with reference to confirmation (Short
fall can be cleared).
 Via Rescheduling- We can use the delivery priority (proposed from the customer master) and
make new order and confirmation date by scheduling.
SHIPMENT OR DELIVERY SCHEDULING
• Different Times involved in delivery scheduling-
 Pick/Pack Time
 Loading Time
 Transportation Lead Time
 Transit Time
• Backward scheduling-The customer request delivery date is used to calculate the material
availability date and transportation lead-time. The delivery mustbe created on the earlier of two dates,
if both date are after the order date, the customer’s requested delivery date can be confirmed.
• Forward scheduling- If both of dates not come after order date, customer request delivery date
cannot be confirmed. Now system confirm the quantity on the basis of New Material availability
date, the earliest date at which the material is available in the warehouse.
•Two schedule line are generated for the sale line item-The date of the first schedule line corresponds
to the customer’s required delivery date and has no confirmed quantity.
•The date of schedule line shows the confirmed delivery date and the confirmed quantity.
The replenishment lead time can be specified for each material.
1. Trading goods: planned delivery time + goods receipt processing time,

SAP SD IMP NOTES
2. Finished goods: in-house production time.
ASSEMBLY PROCESSING [MAKE TO ORDER]
Make to Order without assembly processing-
• Production Order is generated from planned order.
• Make to order without assembly processing is characterized by the fact that materials are not
available in the warehouse but produced especially for a particular sales order.
• An individual Customer requirement is generated from the sales order item and transferred to
material planning.
• We can use material planning run to plan requirements, once this has been done production is
carried out. The system returns the confirmed quantity and delivery date from production order
to sales order.
• After the product has been manufacture, goods receipt is posted in the sales order stock which
is a special stock, and which can only be used for a specific sales order.
MAKE TO ORDER WITH
ASSEMBLYPROCESSING-
Production Order is generated from sales order (No need material planning run).
The individual components for the final product have already been produced; we only need to
assemble the component according to the customer’s requirement.

SAP SD IMP NOTES
OUTPUT
DIFFERENT OUTPUT TYPES
1. Order Confirmation ( BA00/ EDI-BA01)
2. Delivery Note (LD00)
3. Invoice ( RD00)
4. Cash Sales Invoice (RD03)
5. Sales Activity (KO00)
6. Mail Credit Processing (KRML)
7. Scheduling Agreement ( LP00)
8. Quotation Confirmation (AN00)
 Output types are assigned to
1. Partner functions,
2. Transmission media and
3. Dispatch time.
 The transmission medium determines how output is issued.
 Processing the output (in other words, sending the information) is controlled by the relevant
processing program.
 You determine the transmission medium, the time and the partner function in the condition record.
 In the output master data, you define the transmission medium, the time, and the partner function
for an output type.
OUTPUT DETERMINATION LEVEL &
ASSIGNMENT IN SALES
 Output is sent to the partner who matches the partner function in the underlying object (for example,
the sales order). It is also possible to create output that is not dependent on a particular partner (for
example, labels).

SAP SD IMP NOTES
Output Determination - Level Assign to
Output Determination - Sales Document: Header ASSIGNED TO Sales Document Type
Output Determination - Sales Document: Item ASSIGNED TO Sales Document Item Category
Output Determination - Delivery Document: Header ASSIGNED TO Delivery Type
Output Determination - Delivery Document: Item ASSIGNED TO Delivery Item Category
Output Determination - Billing Document: Header ASSIGNED TO Billing Type
Output Determination - Billing Document: Item ASSIGNED TO Billing Type
COMPLAINTS PROCESSING
• You can create The Returns or a Credit memo request or a Debit memo request with reference
to a sales order or a Billing document.
• A Billing Block is automatically assigned to the credit memo request or debitmemo request.This
prevents immediate billing.
• The standard returns process in SAP has an order related Billing-Credit memo. Hence, credit memo
generation can be carried out independently of the inbound delivery of returned goods.
• You create the Invoice Correction request or credit/debit memo (without credit/debit memo
request) with reference to the Billing Document.
• An Invoice correction request is always created with reference to the incorrect billing
document. A credit memo item and a Debit memo item are created in the Invoice correction request
for every item in the incorrect billing Document. Change can only be carried out on the debit memo
items (debit memo is in Change mode, you can put Correct quantity here). It always delete in pair
SALES INFORMATION SYSTEM
• With Sales Information System (SIS), you can compress data from sales document to obtain
information.
• Sales information System (SIS) is a part of Logistics information systems (LIS).

SAP SD IMP NOTES
• List fall in two categories- Online List and Work list.
ONLINE LIST-
1. Provide Data for document,
2. Display document for example-For a customer or a material, with a specific status.
3. Allow you to check and change the documents.
WORK LIST-
• Display activities that need to be processed.
• Allow you to organize tasks into efficient work units.
• Work list allows you to select certain task in SD and to process them afterwards.
• You select the task according to area of responsibility on various selection criteria (such
as date, organizational element or customer).
• The information system based on information structures. These are special statistic table, which
contain transactional data from different application. This data is constantly updated by system.
• Information structure contained three basic type of information: - Characteristics, Period Unit, and
Key Figures.
• Standard information structures for SD available in the R/3 systems are from S001 to S006, You Can
create your Own Information structure in Customizing using the name range S501 to S999.
STANDARD ANALYSIS:-
1. A variety of tools are available that allow you to analyze. These include, for example, Cumulative
Curves, ABC analysis, time series, top-n evaluation, and comparison option.
2. The analysis is based on the information structure. First, you select the required data scope
depending on the characteristics and period of information structure. This data is first displayed in
basic list, which can be drilled down to display different characteristics.

SAP SD IMP NOTES
FLEXIBLE ANALYSIS:-
• Flexible analysis in LIS allow you to determine which data in which format is combined to
create an individual report.
• With Flexible Analysis you can combine characteristics and key figures from different
information structure in one list.
DATA FLOW
• Information is transferred fromthe preceding document to subsequent document.
• Describes the mapping of business process in sales by creation of sales document with reference of
preceding document, this enable document flows to be built up that describe business process.
• This allows you to copy partial quantities or all the item and quantities in reference document directly
by choosing Item selection. You can select certain items and can change quantities before they are
copied.
• A sales process is made up of the sequence of individual process steps, recorded as documents; this
process chain is stored in the document flow.
• You can view all the documents within the document flow in a list, you can branch to individual
documents by double clicking and to display of a document and then return to document flow.
• In status overview in document flow, you can quickly find detailed information about current status of
SD process.
• Document flow updated, when indicator “update doc. Flow” is set in Copying Control.
Billing Doc Billing Qty
Based on Order Order Qty- Qty Already Billied
Qty already delivered - Qty Already
billed
Based on a Credit Memo
request Order Qty-Qty Already Billied
Based on a Delivery
Qty already delivered - Qty Already
billed
Pro Forma Invoice (F5) Order Qty
Pro Forma Invoice (F8) Delivery Qty

SAP SD IMP NOTES
SPECIAL BUSINESS TRANSACTION
RUSH SALE
1. Sales from Plant Scenario.
2. Sales document type-RO
3. Delivery Type-LF
4. Standard item category- TAN [RO+NORM]
5. Billing Type-F2 [Delivery related]
6. Immediate Delivery switch Checked (A)
7. Once the goods have been withdrawn from the warehouse, Picking and posting goods issue can
begin.
CASH SALE
1. Sales from Plant Scenario.
2. Sales document type-CS
3. Delivery Type-BV
4. Standard item category- BVN [CS+NORM]
5. Billing Type-BV [Order related]
6. Immediate Delivery switch Checked (X)
7. Once the goods have been withdrawn from the warehouse, Picking and posting goods issue can
begin.

SAP SD IMP NOTES
CONSIGNMENT PROCESSING
• In consignment processing, goods are delivered to the customer but remain the property of company
in special consignment stock, however they actually used.
• An invoice is not created until the customer-withdrawn goods from consignment stock. Up Till that
point, the customer has the right to return consignment stock.
• Scenario
Order Delivery Picking Goods issue Billing
Fill up (CF) YES YES YES YES NO
Issue (CI) YES YES NO YES YES
Pickup (CP) YES YES NO YES NO
Returns (CONR) YES YES NO YES YES
DELIVERY FREE OF CHARGE AND
SUBSEQUENT DELIVERIES
• Deliveryfree- of-charge [FD]. Item category is KLN [with FD + NORM]. KLN is not relevant for pricing
• Subsequent DeliveryFree of charge [SDF] has reference mandatory to a preceding sales document.
Item category is KLN [with SDF + NORM].KLN is not relevant for pricing.

SAP SD IMP NOTES
PARTNER DETERMINATION
1. Customer master
2. Sales document header
3. Sales document item
4. Delivery Type
5. Shipment Type
6. Billing Header
7. Billing Item
8. Sales Activities
Examples of business partners are:
1. Customer
2. Vendor
3. Employee
4. Contact person
Examples of business relationships are:
1. Vendor-customer: The vendor acts as the forwarding agent for the customer
2. Contact person-customer: The contact person is employed at the customer’s company
3. Contact person-customer: The contact person is the customer’s consultant but does not work in
the same company.
4. Customer-customer: Sold-to party and ship-to party are not the same.
5. Employee-contact person: Contact person is looked after individually
6. Employee - customer: Customer manager

SAP SD IMP NOTES
PARTNER DETERMINATION
ASSIGNMENT:
1. Partner Function to Account Group.
2. Assign Account Group to Partner Determination Procedure.
INCOMPLETENESS
• It presents the function of the incompleteness check. As part of editing sales documents, the system
can check whether all necessary information has been defined in document, if not document is
incomplete.
• Incompletion Log- The incompletion log is a list of containing all information that has been defined
as relevant for the sales document, that has not been processed during sales document processing.
• This list can be called and processed manually or automatically on saving the sales document.
• We define these data fields in customizing for incompleteness Log.
INCOMPLETENESS LOG FUNCTION
1. Sales- Header
2. Sales- Item
3. Sales- Schedule Line
4. Partner
5. Sales activities
6. Delivery header
7. Delivery Item

SAP SD IMP NOTES
OUTLINE AGREEMENT
Two types- Contracts and Scheduling agreements
 The outline agreements with schedule lines are Scheduling agreements and without are Contracts.
 Outline agreements play an important role in nearly all business processes.
 Outline agreements streamline business processes for both partners in a business relationship.
 In the SAP system, various sales document types represent different outline agreements.
 The simplest and most common type of scheduling agreement is represented in the system by
document type DS.
SCHEDULING AGREEMENT
• The Scheduling agreement contains fixed delivery dates and quantity and is valid for a certain period
of time.
• When you enter schedule line for the item in the scheduling agreement, the system adds up the
quantities that have already been entered and compare them both the target quantity and the
quantity already shipped. This give you an overview of all the open quantity, if the quantity in
schedule line exceeds the target quantity, system issue a warning message.
• A scheduling agreement is an outline agreement between you and a sold-to party that is valid for a
certain period of time.
CONTRACTS
Two Types-Quantity contract and value contract. TCODE- VA41.
• The contract does not contain any schedule line, deliveryquantities or deliverydate. It is valid
for a certain period of time with start date and end date.
• Generally, no restrictions apply to the different contract forms
• Release orders are created with reference to a contract. Schedule lines are created in the release
order when it is placed. You can choose materials directly or by exploding an assortment module (list
of valid materials-Master data for product).

SAP SD IMP NOTES
• Release orders are created with reference to a contract. This generates a document flow record that
allow you to update released quantities and values in the contract. In copying control, you decide
which types of sales documents can be used as release orders from a contract.
• You can create release order in any currency and the total value is updated in the currency of the
contract.
• The value of release order is compared with value still open in the contract. You can define how the
system responds when this value is exceeded (sales document type)
• A value contract defines that your customer agrees to purchase a fixed total value (target amount) of
goods and services during the defined period.
• Release orders are created with reference to a contract. This generates a document flow record that
allows you to update released quantities and values in the contract. In copying control, you decide
which types of sales documents can be used as release orders from a contract.
• You can have partner function AA as optional sold to party and AW as optional ship to party in the
standard system.
• You can maintain contract data at both header and item level in the sales document.
• If you assign a contractprofile to the sales document type, the system automatically determine default
values specific to the contract. These could be:
1. Rule for determining start and end of the contract
2. Duration category
3. Subsequent activities
4. Cancellation procedure
MATERIAL DETERMINATION
• Material determination provides you with a tool for automatic exchange of material in sales document.
• Material determination is carried out by condition technique. You do not need a material master
record for the material number that you are replacing.
• You can assign a substitution reason to every master record in material determination that defines
how the material should be determined.

SAP SD IMP NOTES
• In standard system reason for substitution 0005 is for manual product selection and 0004/0006 is for
automatic product selection. If automatic product selection is used, the system may display (based
on customizing) the entered and substitute material as main and sub-items in sales order.
• Item data sales A contain information about material that was originally entered and reason for
substitution.
• You can use product attributes in material master and customer master records to exclude a
particular material from product list.
• You can re-run material determination when delivery is created. If material determination is rerunning,
the result of the substitution may change due to new availability situation.
• You can assign a material determination procedure to each sales document type.
LISTING
• Make sure that your customer receives only specific materials. You enter these materials as a
material listing.
• The material listing is controlled by condition technique.
• You define in sales document type whether the system checks the material listing or not.
EXCLUSION
• Make sure that the customer does not receive certain materials. You enter these materials as a
Material exclusion.
• The material exclusion also controlled by condition technique.

SAP SD IMP NOTES
FREE GOODS
• Condition technique is used for free good determination.
• For free goods determination system uses-
1. Sales area
2. Document determination procedure (Sales document type)
3. Customer determination procedure (Customer master data)
• Free goods can be part of the order quantity not included in the invoice. This is called an inclusive
bonus quantity. The order goods and the free goods both involve the same material. The quantity
units of the free goods and ordered goods must be same.
• In exclusive bonus quantities, the extra goods are delivered free of charge and not typically his
included in the invoice. This can either be an additional quantity of the goods ordered or it can be
another article. The exclusive free goods appear in the sales document as an individual, free- of-
charge item.
• The system re-reads the free goods master record in the sales order if the quantities in the main item
change or if the pricing date changes. The system then deletes the sub-items and re-creates them.
• Any manual changes to the free goods quantity are lost. If pricing is re-run in the sales order, it
does not affect the free goods determination.
 You can restrict master records for one level in many different ways:
1. Validity period: The condition is only valid within this period.
2. Minimum quantity: The condition comes in to affect when this quantity has been exceeded
Calculation rule: see next slide Scales.
 Let’s say you are offering to supply 3 units of free goods for every 100 units ordered
Let’s say customer orders 226 units.
Using the rules system would calculate in following way
Rule 1 Prorated: 226* (3/100) = 6.78 = 7 (rounded up)
Rule 2 unit related: 200*(3/100) = 6 (system calculates in units of 200. since 226 are ordered, it
calculates for 200 units)
Rule 3 whole units: 0 free goods since 226 is not a complete unit of 100

SAP SD IMP NOTES
DELIVERY
• Each outbound delivery starts at a shipping point, continues along a route, and has ship to party as
the destination. These elements are header fields in the outbound delivery.
• The SAP system supports the following function within shipping processing:
a. Monitoring of deadlines for reference document due for shipping
b. Creation and processing of outbound deliveries
c. Monitoring of goods availability
d. Monitoring of capacity situation in the warehouse
e. Support for picking (With link to the warehouse management system)
f. Packing of outbound delivery
g. Printing and distribution of shipping documents
h. Processing of goods issue
i. Controlling through overviews of
i. -Outbound deliveries currently in process
ii. -Activities still to be performed
iii. -Possible bottlenecks
LOGISTICS EXECUTION
• The logistics process in a company that covers the entire process chain from the vendor through
the company warehouse, production facilities, and distribution centers to the customer.
• LE process includes-
1. The goods receipt process
2. The goods issue process
3. Internal warehouse process

SAP SD IMP NOTES
4. The transportation process
Organizational structure: logistics
Plant, Storage location, Warehouse number, shipping point
 Logistics Execution is the link between procurement and distribution, regardless of whether the
processes involved are internal or relate to third-parties (vendors, customers, or service
providers).
 Inbound deliveries can be created with reference to purchase orders.
• You can model the structure of a corporate group by using Client and Company codes. A client is
often synonymous with a corporate group, while a company code represents an independent
accounting unit. Company codes are legally independent fromone another.
• The plant plays a central role in logistics. A plant is a production facility or a location that handles
material stock. It could be a collection of several locations in one general vicinity with material stock,
which are known as storage location. Stock is managed at the level of the storage location.
• Inventory valuation is done either at company code level or Plant level, however the stock is managed
at storage location level.
• Several storage locations within a plant can refer to the same warehouse number. As a result, they
form the warehouse complex from the point of view of inventorymanagement
• The connection of organizational units in the warehouse to MM inventory management results from the
assignment of warehouse number to a combination of plant and storage location.
• The organizational unit of WM- warehouse number, storage type, picking are, staging area and
door. You can activate lean WM in customizing at the warehouse number.
• A shipping point is an independent organizational unit at a fixed location that process and monitor
outbound deliveries and goods issue. The shipping point is directly under the client level.
• An outbound delivery is processed from a single shipping point. The responsible shipping point is
determined in the order at item level.
• A shipping point may also be set as a goods receipt point, which means it can also be used for
inbound deliveries.
STRUCTURE DELIVERY DOCUMENT

SAP SD IMP NOTES
• A delivery Document has two level- Header and Item. There is no schedule line. The reason is
each schedule line in the sales order can become an item in delivery document.
DELIVERY TYPE CONTROL
 Rule for determining storage location-(MALA, RETA, MARE)
 Text, partner, output determination procedure
 Route re-determination
 Deliverysplit by warehouse number
 Deliverysplit by partner
 Automatic packing
 Order reference
DELIVERY ITEM CATEGORY CONTROLS
Control Delivery Header Delivery Item
Picking Relevance YES
Packing Control YES
Automatic Packing Yes
Storage Location Determination YES
Rule for Storage Location ( MARE/MALA/RETA) Yes
Storage Location Required YES
Delivery Relevance YES
Check for Min/Over/Zero Delivery YES
Availability Check Control YES
Text Determination/ Output Determination YES YES
Delivery Split by WH No Yes
Delivery Split by Partner Yes
Order Reference required Yes
Automatic Batch Determination Yes
Coping control-Delivery
• Update document flow

SAP SD IMP NOTES
• In copying control table you specify:
 Which sales and distribution document types can be copied to which delivery type? Which
item categories are copied from reference document?
• You can also specify
 Under what condition data is copied from the order to the outbound delivery.
 Under what condition several orders can be combined in an outbound delivery.
 Which data to be transfer?
 Whether the reference should be recorded in the document flow.
when you copy an order item to a delivery, the system copies the item category of the order item
to the delivery. An item category is not specified for order-independent items in the delivery (for
example- packing material), for deliveries without reference to an order (Delivery type LO). In
such case the item category determine take place on the basis of customizing setting which is
same as that of sales document item category.
Deliveryitem category det. - deliverydocument type + item category group + usages
[DLN (standard item without order) - LO+NORM]
ROUTE DETERMINATION
• Route determination is carried out in sales order item and depends on:
1. The departure zone- shipping point (customizing)
2. Shipping condition-sales document type or sold to party
3. The transportation zone- ship to party (shipping tab)
4. The transportation group-material master (general/plant)
• In the order item, you can manually overwrite the route that is determined.
• You can re-determine the route in the outbound delivery based on the weight (weight group). Whether
the route is re-determined depends on the configuration of the delivery type.
SHIPMENT OR DELIVERY SCHEDULING
• Different Times involved in delivery scheduling-

SAP SD IMP NOTES
a. Pick/Pack Time
b. Loading Time
c. Transportation Time
d. Transit Time
• Shipping point calculate: - Pick/Pack Time, Loading Time
• Route calculate: - Transportation Time, Transit Time
The following data is used in shipment scheduling: (OMLGD)
 Order date: date on which the order is placed
 Material availability date: date by which a sufficient quantity of goods must be available for picking
and packing
 Loading date: date on which the goods picking and packing process is completed(and the mode
of transport is available)so that loading can begin on time
 Goods issue date: the date on which the goods must leave the delivering plant so that they reach
the customer on the agreed date
 Delivery date: date on which the goods arrive at the customer.
A differentiation is made between:
BACKWARD SCHEDULING- system confirms the quantity of delivery on the basis of customer
request deliverydate.
FORWARD SCHEDULING- system confirms the quantity on the basis of New Material availability
date.
PRECISE SCHEDULING-the system calculates and displays the results of scheduling down to minute.
If you have maintained the working times of the shipping point, the system performs precise scheduling.
DAILY SCHEDULING: - the system uses days, hours, and minutes for calculation, but only displays the
resulting dates.
Route schedule: - the route is used to determine the transportation lead-time and transit time. For
Transportation lead-time precise scheduling uses the working times of the shipping point; daily scheduling

SAP SD IMP NOTES
uses the factory calendar of the shipping point. For the transit time both types of scheduling use the factory
calendar of the route to determine when route is used.
 You can use the route schedule to organize outbound deliveries from a particular
shipping point to different ship to party.
 The route schedule generally contains: Route, Departure date and time, list of ship to party
and itinerary (optional)
 You can use route schedules in sales order, stock transfer and outbound deliveries.
 In customizing, you define whether a route schedule should be assigned for each shipping
point, order type, purchasing doc. type (Delivering plant) and deliverytype.
SHIPPING POINT DETERMINATION
CHANGE:
 In Sales Document: Can be changed if mentioned as Possible (Proposed) Shipping point during
Shipping Point Determination.
 In Delivery Document: Can’t change the shipping point
PICKING LOCATION / STORAGE LOCATION DETERMINATION: - MALA, RETA, MARE
• MALA: - determination based on the shipping point, the delivering plant, and the storage
Condition (Material master-plant data/storage 1)
• RETA: - Determination based on the delivering plant, situation, and storage condition.
• MARE/MARA: - First MALA then RETA / first MALA will be considered for storage location
determination if it does not satisfied your requirement then we will use RETA a backup procedure
with the help of SAP enhancement V02V0002.
• RETA and MARA: These rules are mainly used in trade scenarios.
OPTIONS FOR CREATING OUTBOUND DELIVERIES
• Each outbound delivery starts at a shipping point, continues along a route, and has the ship to party
as the destination. These elements are header fields in outbound delivery.
• You can store delivery agreements using the indicators in the customer master record of sold to party
or in the customer material information.

SAP SD IMP NOTES
• If the customer allow order to be combined, the R/3 system combines orders when creating the
delivery due list. For this the following characteristics should be same:
• Shipping point, Deliverydue date, Ship to party, Incoterm, Route
• You can create an outbound delivery manually with or without reference to a particular order.
However, if you create a delivery manually, you cannot deliver purchase order or other request.
• You can change or add to delivery documents after they have been saved. However, information
such as ship-to parties and shipping points can no longer be changed once you have created the
outbound delivery.
• For example, you could add items to the outbound delivery. These items may refer to other orders
(deliver order function). The same split criteria apply to the additional orders as to the combination of
orders during collective processing. You can also add items to the outbound delivery without referring
to an order.
DELIVERY DUE LIST
• The delivery due list is a work list of all operations requiring deliveries.
Combining items from different sales orders is only possible if the items have several common
characteristics, for example: Shipping point (goods issue from the same place in your enterprise) Date
that delivery is due (date on which shipping processing should begin, either materials availability date or
transportation planning date) Ship-to party(out bound deliveries have the same destination) Route (same
method of transport and route) Incoterms (International Chamber of Commerce terms of liability for freight
in-transit)
SHIPMENT
• If you use transportation functions, outbound deliveries are grouped together on the basis of
user-defined criteria in a document called the shipment document.
• Shipment function is optional. You can create a shipment after deliverycreation or after PGI.
You can invoice the customer for shipment cost.
OUT BOUND DELIVERY MONITOR
• The outbound delivery monitor displays all deliveries that are still to be processed or that
have just been processed.

SAP SD IMP NOTES
• You can use the outbound delivery monitor to execute important follow-on-functions in collective
processing in the background (for example-transfer order creation for picking, or posting of goods
issue).
TRANSFER ORDER
• A transfer order is an instruction to move material from a source storage bin to a destination
storage bin within a warehouse complex.
• The transfer order include the information like-material number, quantity to be moved, source
and storage bin.
• With WM precise inventory management at the level of the storage bin is possible and used for
warehouse with random storage. This is not possible with lean WM and hence suitable for fixed
bin warehouse.
• You can Group Transfer order based on the warehouse number.
• Automatic or direct creation of transfer order if the systems determine output type WMTA at the
header level of outbound delivery when delivery is being created.
LEAN WAREHOUSE MANAGEMENT
• Lean Warehouse Management only with Fixed Bin Storage.
• Some of the WM functions not included in Lean WM are: 1.Storage sections, 2. Reserve
storage bins 3.Strategies for put away and picking 4.Replenishment 5. Inventory at storage-bin
level.
• For Lean WM, you need at least one warehouse number and at least one storage type from
which picking takes place.
BATCH MANAGEMENT SETTING-
• Material master-Plant/storage 1 view and purchasing view- Activate batch management.
• In customizing- deliveryitem category, sales item categories (automatic batch determination)
when delivering a sales order, this batch is copied to outbound delivery. Then you cannot
change batch in outbound delivery.

SAP SD IMP NOTES
• If a batch has not been specified in the sales order, you can enter one in the picking overview
screen of the outbound delivery. You must specify a batch before goods issue.
• Batch split function is used if delivery quantities of an item are to be taken from different
batches. It can be done manually in batch split screen of delivery item or automatically using
automatic batch determination, for this customizing is done in delivery item category.
SERIAL NUMBER
• You can assign a unique serial number to each material. This is allows you to monitor goods
movement for individual materials.
• To use serial numbers, enter serial number profiles in the material master record (general/plant
and Plant data/storage-2).
• Serial number is specified in the delivery item or the order.
• You must specified serial number before posting goods issue.
SHIPPING RELATED CONDITION
• The outbound delivery can contain shipping-related condition at header level.
• You can use the SD pricing technique.
• Assign the pricing procedure to the delivery type
DELIVERY SPLIT
• When you split a delivery, you create one or more new deliveries, called result and the reminder.
• When you call the delivery split, specify a split profile to determine the type of split. Split profiles are
define in customizing, and assign to delivery type.
1. Delivery split by warehouse number
2. Delivery split by partner

SAP SD IMP NOTES
PACKING
• Picking is the process of preparing goods for delivery to the customer with special attention paid to
dates, quantity, and quality.
• The packing function is available in –Order (as packing proposal), in the inbound delivery, In the
outbound delivery, In the shipment document.
• When you create the transfer order, the system sets the delivery quantity as the picking quantity and
the picking status is set to C (=fully picked). If you wish to have the system record that the picking
procedure is complete, you can set up the confirmation requirement. In Customizing, you define the
confirmation requirement for each storage type.
• Selected items from an outbound delivery can be packed in an individual packaging type called a
handling unit. The handling unit is assigned a unique sequential number from a predefined number
range.
• Packing instructions consist of:
1. Packaging Materials
2. Materials to be packed
3. Text items
4. Subordinate packing instructions
5. Rules concerning rounding, minimum quantities,
6. Definition of a check profile
PACKING CONTROL-
• You define packaging material type and packaging material group. Assign packaging material
type to packaging material group. Choose material type VERP for material master and maintain the
packaging material group in basic data 1 and sales: general/plant views. However, if this field has
not been maintain in the material master, this material can be packed in any packaging material
depending on the weight and volume.
• The system can generate a separate item in outbound delivery for each packaging material. For this-
1. You must set item category determination in customizing. In this context, table entries with PACK
usage are relevant.
2. The delivering plant must be determined using the plant determination rule in the packaging
material type or must be entered manually.

SAP SD IMP NOTES
3. If you want to bill the customer for packaging material, item category should be determined as
DLN.
4. If you use returnable packaging material, you must create them in the material master with item
category group LEIH (item category TAL is determined). Whengoods issue is posted, the material
is transferred to special stock for the customer.
GOODS ISSUE
• Posting goods issue involves an interface with FI as stock valuation changes.
• After goods issue has been posted, there is limited scope for changing the outbound delivery.
• Posting goods issue for an outbound deliverycompletes shipping activities.
• The prerequisites for posting goods issue is that picking-relevant item are completely picked (transfer
order is confirmed). This means that the delivery quantity and the picked quantity in the outbound
delivery must be same.
• Goods issue can be posted by changing a single outbound delivery, by collective processing
function to select all deliveries for which goods issue is due to be posted, can also use the outbound
deliverymonitor to do this and at the time of transfer order creation (to choosing adobe quantity 2)
• Any errors are logged when, for example, data such as the batch or serial number is missing or
when picking has not been carried out fully for these items. In this case, goods issue is not posted.
• The goods movement is controlled by “Movement type-601” (schedule line)
• You specify in the Quality Management view of the material master if a quality inspection is to be
carried out for the material.
EFFECT AFTER GOODS ISSUE-
1. Reduce warehouse stock
2. Post the value change to the stock accounts in inventoryaccounting
3. Enter status information in the outbound delivery.
4. Reduce deliveryrequirement.
5. Is store in document flow and update status of preceding document
6. Create work list for billing.

SAP SD IMP NOTES
CANCEL GOODS ISSUE
• If goods issue for an outbound deliveryis canceled,the goods issue posting is reset.The system
copies the quantities and value from the original goods issue document and carry out an inventory
posting based on these quantities and values with a reversed +/- sign.
• If the outbound delivery has been fully or partially billed you must first cancel the billing document, then
you cancel goods issue.
• After goods issue has been canceled, the goods movement status of the outbound delivery is reset to
“Not yet started”. This allows you to further process the outbound delivery (Goods issue) as usual.
• For each movement type in inventorymanagement, you must define a reversal movement type
in customizing. No additional settings are required for movement types used for goods issue posting.
QUALITY MANAGEMENT
• You specify in the quality management view of the material master if a quality inspection is to be
carried out for the material. When the outbound delivery is created in SD, QM automatically creates an
inspection lot for the delivery items that are relevant for inspection. The usage decision represents the
completion of a QM inspection. Depending on the customer, or on the customer and the material
together, you can specify if the inspection log must be accepted before goods issue can be posted. You
initiate printing of a certificate of quality from output control of the outbound delivery at item level.

SAP SD IMP NOTES
POD SETTINGS
• You need to define which deliveryitem categoriesare relevantforthe PODprocess. You also need
to define reason for deviation, and in the customer master data (sales area- shipping tab) specify
POD relevance.
• The system creates the billing document based on the correct (verified) quantity. The creation of a
billing document using the billing due list is blocked until proof of deliveryhas been confirmed.
• Proof of delivery (POD) is essentially designed to support the process of only creating an invoice once
the customer has confirmed the arrival of the materials.
• If differences are reported, the delivery cannot automatically be confirmed. In this case, you must
continue processing manually.
TAB PAGES IN DELIVERY
DOCUMENT
Overview:- Item overview, Picking, Loading, Transport, Status overview, Goods movement data.
More Functions of Delivery:
Quality Checks, Texts, Export Controls, Dangerous Goods Check, Group of Outbound deliveries, Delivery
Split by WH no, Controllable error message, Credit and risk management, Material substitution.

SAP SD IMP NOTES
PRICING
 Condition table–defines key fields of the condition records
 Access sequence–Contains the hierarchy for condition record access
 Condition type–Represents the properties of the pricing conditions
 Pricing procedure–Defines how the condition types are linked
 Procedure determination–Selects the correct pricing procedure
 Adding new fields for pricing – Creates new fields to meet customer requirements
 Requirements–Defines dependencies and improves performance –
 Formulas–Enables expanding the limits of standard configuration
 Which condition master data categories (4) can be used in pricing? Answer: Prices,
surcharges/discounts, freights, taxes.
VARIOUS COLUMNS IN PRICING
PROCEDURE (RVAA01)
(16 Fields of Pricing)
Step, Condition counter, Condition type, Description (condition, From, To, Manual, mandatory,
Statistic, Print (X-print of item level), Subtotal (reference level), Requirement, AltCty (Routine),
AltCBV (Routine), Account Key (ERL, ERS), account key- accruals
 Access number of the conditions within a step in the pricing procedure.
 During automatic pricing, the system takes in to account, the sequence specified by the
counter.
The termprice book refers to a price determination strategy.
CONDITION RECORDS
• Condition records based on key fields (combination of key fields called condition table)
• In pricing condition records you can have a validity period, maintain scale and specify upper and
lower limit for manual changes. Manual changes only in this specified limit.

SAP SD Certification (C_TSCM62_66) Preparation Training Notes

SAP SD Certification (C_TSCM62_66) Preparation Training Notes

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SAP SD Certification (C_TSCM62_66) Preparation Training Notes