Define Company Code: -
Define Sales Organization:-
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Distributing goods and services
Negotiating sales conditions
Product liability
Define Distribution Channel:-
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Wholesale trade, retail trade, internet trade
Make your strategies forecast to distribute goods / services to you customers
Sales materials reach the customer
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Define Division:-
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Represents a product line
Used for group materials and services
Examples: motorcycles, spare parts, services
Define Sales Area:-
A sales area is a combination of sales organization, distribution channel, and
division.
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Define Plant and Storage Location:-
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A plant can represent a manufacturing facility.
The plant is a location where material stock is kept
In sales and distribution, a plant represents the location from which materials
and services are distributed and corresponds to a distribution center
Each plant is uniquely assigned to a company code
The assignment between sales organizations and plants does not have to be
unique
The plant is essential for determining the shipping point
Define Shipping Point:-
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The shipping point can be a loading ramp, a mail depot.
More than one shipping point can be assigned to a plant.(many to many
relationship)
You can assign several plants to shipping points.
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Define Sales Processes:-
INVENTORY SOURCE
Inquiry
Quotation
Order
Shipping
Billing
Payment
Pre-Sales Activity
Customer order management life cycle
Define Pre Sales: 
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Inquiry
Quotation
Define Order: -
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A sales order is an electronic document that captures and records your
customer's request for goods or services.
The sales order contains all pertinent information to process the customer's
request throughout the whole process cycle.
You can enter a sales order with many items in a single screen.
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Define Inventory Sourcing: - (Procurement)
The procurement can, for example:
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result from available stock
be guaranteed by replenishment (purchase requisition or purchase order,
planned order or production order, for example)
trigger a make-to-order production
order the outbound delivery via external suppliers (third-party business
transaction)
organize the outbound delivery via another warehouse (stock transfer)
Define Shipping: -
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Define Billing: -
Define Payments: -
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Define Sales document structure:-
 Header: - Contains customer related data and valid for entire document
 Item: - Data about material & quantity. Contains its own data
 Schedule line: - Contains delivery dates and quantity delivered. The item can
have several schedule lines. (Several partial deliveries at different times)
Define Delivery document structure:-
 Header: - Valid for entire document, data for ship-to-party and schedules for
shipping point
 Item: - Each item contains the Sales & Distribution its own data. Info about
material, quantity & stock. (Item category  Free of charge, material item,
text item) TAN, TANN, etc
 No Schedule Line
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Define Picking: - (Transfer order)
 You can create Transfer Order for an outbound delivery
 System can combine several outbound deliveries into a group of Transfer
Order, these deliveries all have the same warehouse number
 You can create a picking list which includes all relevant deliveries
Define Posting Good Issues:-
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Update the status in all relevant sales document
Update the quantity in Inventory management and delivery requirements
Update the value changes in balance sheet
Generates the documents for accounting and controlling purpose
Generates the billing due list
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Define Billing document structure:-
 Header: - Valid for entire document. Data for the payer and billing dates
 Item: - It includes detail about material, billing quantity and net value of the
items
 No Schedule Line
Define Document flow in Sales & Distribution:-
 Enables you to access the history and current status of your sales and
distribution processes at any time.
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Master Data in Sales and Distribution
1- Customer Master Data
2- Material Master Data
3- C. Material Info Record
4- Condition Master Data (Pricing)
5- Incompletion Log Data
6- Output Master Data
Customer Master: - Transaction code (XD01, XD02, XD03)
Data on the General Data Tab Pages: -
By changing the Customizing settings, you can hide certain fields on a tab page or
make them required entry fields.
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Data on the Sales Area Data Tab Pages: -
By changing the Customizing settings, you can hide certain fields on a tab page or
make them required entry fields.
Data on the Company Code Data Tab Pages: -
By changing the Customizing settings, you can hide certain fields on a tab page or
make them required entry fields.
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Material Master: - Transaction Code (MM01, MM02, MM03)
Data on the Sales Tab Pages: -
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The basic data is relevant for all areas. It is maintained independently of the
organizational units.
The data for Sales: Sales Org. 1 and Sales: Sales Org. 2 as well as the sales text
is valid for the sales organization and the distribution channel.
The Sales: General/Plant data and the Foreign Trade: Export data is valid for
the delivering plant.
By changing the Customizing settings, you can hide certain fields on a tab page or
make them required entry fields.
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Cross-Division Sales: -
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Enter multiple materials with various divisions in a sales order is called cross division
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We have different division like 02, 07
Sales 0rganization, Distribution Channel and Division (1000 + 12 + 00) It effect header of
Sales & Distribution
Division-Specific Sales: -
You cannot use this kind of processing to enter multiple materials with various
divisions in an order.
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Customer Material Info Record: - (Combination of customer & materials)
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Customer Material
Customer Description
Plant
Search Term
Sales Text
Sales Organization
Distribution Channel
Item Usage
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Batch Split Allowed
Delivery Priority
Minimum Delivery Quantity
Partial Delivery/Item
Maximum Partial Delivery
Under Tolerance
Unlimited Tolerance
Over Delivery Tolerance
Condition Master Data: - Transaction Code (VK11/12/13)
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The condition master data includes prices, surcharges and discounts, freights,
and taxes.
Condition type for price PROO.
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Output Data:-
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Partner Function:
o Sold to party, Ship to party, bill to party and payer
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Transmission Medium:
o EDI, FAX, TELEX and PRINTER etc
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Time:
o Hours, Second, Minute, Day, Week, Month
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Language:
o English, Detach, Arabic etc
The output determination always takes place using the condition technique.
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Incompletion log:-
These functions are available in sales order and Delivery. Determines which fields
are displayed in the incompletion log when the user does not fill them during dales
order processing. (Missing Data)
You receive the incompletion log either:
a) Automatically when the data is saved, or
b) By choosing Edit → Incompletion Log.
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Common Master Data: - Distribution Channels
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Customer Master Data
Material Master Data
Condition Master Data
Common Master Data: - Divisions
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Customer Master
Condition Master Data (Pricing)
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Sales Document Types: 
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Standard Order “OR”
Rush Order “RO”
Inquiry “IN”
Consignment Fill up “CF”
Consignment Issue “CI”
Consignment Return
“CONR”
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Consignment Pickup “CP”
Contract Order “CO”
Return “RE”
Quotation “QT”
Cash Sales “CS”
Rush Order “RO”
Free of charge delivery
“FD”
Credit/Debit
memo request
“CR/DR”
Delivery Document Types: 
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Number Assignment
Partner
Delivery Split By
Warehouse Number
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Text
Reference To Order
Output
Route Redetermination
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Relevant For Shipping
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Credit Memo “G2”
Debit Memo “L2”
Return “RE”
Cancellation Invoice
“S1”
Credit Memo List “LG”
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Cancellation Credit
Memo “S2”
Cancellation Of Cash
Sales “SV”
Inter Company
Billing(Invoice)
Billing Document Types: 
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Invoice “F2”
Pro forma Invoice Though
Delivery “F8”
Pro forma Invoice Though
Sales Order “F5”
Invoice List “LR”
Inter Company Billing
(Credit Memo)
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Shipment Scheduling Process: -
The following data is used in shipment scheduling:
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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:
 Requested delivery date: date on which the customer would like the
goods to arrive
 Confirmed delivery date: date on which the goods receipt is confirmed
for the customer.
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Backward Scheduling Process: -
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If both dates are after the order date, the material is available on Material
Availability date. Then customer requested delivery date can be confirm.
Forward Scheduling Process: -
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If one of the two dates is before the order date, confirmation of the requested
delivery date cannot take place.
Two schedule line are generated for the sale
(No confirm quantity and Requested delivery date) (Confirmed Amount and
Confirmed delivery date)
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Outbound Delivery Options: -
There are fields in master data and in the sales document where you can store
customer defaults for processing deliveries.
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If the customer requires complete delivery, the order should be delivered in
one single delivery. All items should be delivered at the same time. When
creating an outbound delivery, if all of the order items cannot be shipped
with the full order quantity, you receive a warning that the customer requires
complete delivery.
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If the customer does not require complete delivery, you can define a partial
delivery agreement with the customer.
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If the customer allows orders to be combined, the R/3 System combines
orders when creating the Delivery Due List. Combining items from different
sales orders is only possible if the items have several common characteristics,
for example:
o Shipping point (goods issue from the same place in your enterprise)
o Date that delivery is due (date on which shipping processing should
begin, either materials availability date or transportation planning
date) must be within the selection dates on the delivery list initial
screen.
o Ship-to party (outbound deliveries have the same destination)
o Route (same method of transport and route)
o Incoterms (.International Chamber of Commerce. terms of liability for
freight in-transit)
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Billing Options: -
Invoice split:
You have a sales order for which one outbound delivery has been processed.
Two billing documents are created from the outbound delivery, based on key
differences between the line items, for example, different material groups.
Separate billing document for each outbound delivery:
You have a sales order for which two outbound deliveries have been processed. Two
billing documents are created from the outbound delivery.
You would choose this option if your customers typically verify the invoice against a
bill of loading, for example.
Collective invoice:
You have two sales orders for which three outbound deliveries have been processed
(for example, different ship-to party or partial delivery). A single billing document is
created from the outbound deliveries.
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Short Questions
 What do we find in shipping point?
o Loading Lead time, Pick pack lead time
 What do we find in Route?
o Transit Time from shipping point
o Lead time from transportation planning
o Forwarding agents
 Where the Availability Check carried out?
o Plant
o Sales Order
o Material Staging Date
o Control
o Inbound / Outbound
 What do we find in Material Availability Date: o Backward Scheduling
o Forward Scheduling
 What are the controls of availability check?
o Inward (MM)
o Outward (SD)
 How can you deliver?
o Material Availability Date
o Transportation Planning Date
 Where do we find availability check?
o Schedule line
o Material Master
o Checking rule
 Define Fast Change & Mass Change:
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Fast Change
Mass Change
Delivery date
Delivery block
Delivery priority
Billing block
o Reason for rejection and
Plant
o Plant
o Material
o Pricing
o Currency
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o
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 Where the Condition Technique uses?
o Pricing
o Packing
o Text
o Tax
o Rebate
o
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o
o
Free goods
Material
Listing and Exclusion
Account Determination
Output Determinations
 Where Condition Technique is not used?
o Incomplete
o Partner Determination.
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Determinations
Determine Plant:
 CMIR (Customer Material Info
Record)
 Ship-to-party Customer master
 Material Master
Determine Pricing Procedure:
 Sales Area
 Sales doc type(Doc pricing from
sales doc type)
 Customer master(Customer
pricing from customer master)
Determine Item Category:
 Sales document type
 Item category group from
M.Master
 Item usage from program
 High level item category from
(BOM, Free goods)
Determine Free Goods:
 Sales Area
 Document pricing procedure
from sales document type
 Customer pricing procedure
from customer master.
Free Goods:
 Exclusive: - One or more
product is involved.
 Inclusive: - Only one material
product involved
Determine Business Area:
 Plant / Item division
 Sales area
 S.O / D.C / Item division
Determine Schedule Line:
 Item Category
 M.R.P Type
Determine Shipping Point:
 Plant from sales document
 Loading group from Material
master
 Shipping conditions from sales
document then sold to party
customer master
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Determine Partner Procedure In
Sales Area:
 Customer master from A/C
group
 Sales doc Header from sales doc
type
 Sales doc Item from Item
category
 Delivery type (H + I)
 Shipment
 Billing Header
Billing
 Billing Item
Types
 Sales Activities
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Determine Route:
 Departure zone from shipping
point
 Transportation from ship to
party
 Shipping conditions from sales
document then sold to party
customer master.
 Transportation group from
material master
Determine Copying Control /
Procedure:
 Date transfer routines
 Switches
 Copying requirements
Determine L.W.M:
 Plant
 Storage Location
 W.H Number
Determine Tax:
 Business transaction-domestic
or export/import
 Tax liability of the ship to
party
 Tax liability of the material
Determine Billing Plan Type:  Item category
 Relevance for billing
Determine Text Procedure:  From Item category
 From Header
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Material Determination:
 You do not need a material
master record for a material
number that you are replacing
 The procedure is assigned to
only sales document type
 Provide you with tool for
automatically exchanging the
material
 Material determination is
allowed condition technique
Data Determination In Access
Sequence:
 Communication structure
 Routines
 Sales deal
Determine Account Determination:
 G/L A/C Sales
detection/revenue
 G/L A/C Payment cards
 G/L A/C Cash settlement
 Reconciliation
Determine Item Category In
Delivery:  Delivery type
 Item usage
 Item category group
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