Enterprise Wide Information Systems
Configuring SAP
Instructor: Richard W. Vawter
University of
Southern California
Objectives
 The primary objective of this discussion is to show
how the SAP R/3 Implementation Guide (IMG) can be
used to aid the project team in configuring business
transactions.

For simplicity, we will keep our focus on the Order process.
 Upon completion of this topic, you should be able to:

Describe the various implementation and configuration
tools available in the SAP R/3 system.

Anticipate how elements of the Customer Master are
integrated and are used to control the SD processes.

Use elements in the Material Master to streamline COM.

How to configure the Billing process for data flow and
price control.
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Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process
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Methods for Implementing & Configuring SAP
SAP R/3 includes several tools to facilitate configuring SAP
and continuing support .
 The R/3 Reference Model - describes the business
processes included in the standard R/3 system as well as
the relationship among the different application modules.
 The Implementation Guide (IMG) - guides users in
matching their business requirements with the SAP
standard software.
 The Procedural model - is used as a navigator to guide
you through the whole implementation and configuration
process.
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The Implementation Guide
 A tool that leads to a step-by-step customizing of
selected parts (modules) of the R/3 system.
 It guides the project team in matching the business
requirements with the SAP standard software.
 With the IMG project management functions...

Consultants in charge of implementation first decide which
parts of R/3 are to be customized.

The system then automatically generates the needed
hierarchical list of the customizing steps for achieving that
customization.
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The Implementation Guide
 Basis configuration takes place.
 Global settings are set as default in the SAP system.
 The structure is defined to match the organization’s
business function.
 Applications are created to meet business requirements.

Financial Accounting

Sales and Distribution

Materials Management

Human Resources
 Cross- application functions are developed.
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The Enterprise IMG
 The Enterprise IMG is just a subset of the Reference IMG.
 It is where all the customizing takes place.
SAP Reference IMG
FI
SD
Enterprise IMG
CO
Project IMG
CO
CO
PP
PS
MM
HR
….
PP
MM
MM CO
PP
Project 001
FI
Project 002
FI
Project 002
Additional needs,
e.g. upgrade
FI
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Southern California
Customizing Objects
 As a rule, you will have more than one SAP system.

Development system

Test system

Production system
 Changes made in the development system are
transported to the test system, then to the production
system.
Development system
Implementation guide
Sales organization
Transport
Request
Workbench
organizer
1 2
1 2 3
1 2 3 4
Sales documents
1
1 2
Test system
Sales organization
2
3
4
Versions
Sales documents
1
2
Customizing - How to Proceed
1. Define the organizational structures in the IMG and
name the individual organizational elements.
2. Assign the organizational elements.
 Define the organizational elements
 Assign the organizational elements
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Southern California
Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process
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Southern California
How Master Data is Integrated in SD Processing
Sales support
Sales
Master Data
Customers
Materials
Bills of Materials
Customer-Material Info
Product Proposals
MM
PP
PM
CC
FI
PS
MM
FI
FI
CO
Materials Mgmt.
Production Planning
Plant Maintenance
Controlling
Financial Accounting
Project System
Materials Mgmt.
Financial Accounting
Financial Accounting
Controlling
Data
Warehouse
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Origins of Data in Sales Documents
 When you create a sales order, the system proposes
most of the data from the master records.
Sales order
Customer master data
Conditions
Material master data
Texts
.....
Control tables
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Business Partners (Partner Functions)
 Partners - someone you have a relationship with or
have to communicate with.
 Functions - each partner type has specific functions.
Sold-to party
........
Employee
Ship-to party
Partner
Functions
Forwarding agent
Bill-to party
Payer
Contact person
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Business Partners - Customer Master
 Essential business partners for a sales transaction are
the sold-to party, ship-to party, payer and bill-to party.
 They are stored in the customer master.
Ship-to party
Sold-to party
Customer
master
Bill-to party
Payer
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Customer Master - 3 Major Data Views
 Sales data - data specific to sales, e.g. sales,
distribution, shipping.
 Company Code data - financial accounting data.
 General data - data assigned directly to a client so it’s
available to the other two areas.
General data
FI
Company code data
SD
Sales data
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Customer Master - Account Groups
 Account Group codes define what information will be
needed; what fields will be required.

A payer only needs address information, etc, while a sold-to
party needs an address plus delivery address, etc.
Create sold-to party
Customer
Sales organization
Distribution channel
Division
Account group
:
:
:
:
:
C1
0001
01
01
0001
0001
ACCOUNT GROUP 0001
Field selection
Number assignment
One-line account: Yes/No
Output proposal
ACCOUNT GROUP
0001
0002
0003
0004
...
Sold-to party
Ship-to party
Payer
Bill-to party
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Customer Master - Selecting Fields for Data Groups
 Using field selection, you can define for each account
group whether fields are optional or required.
 You can suppress any fields which you do not require.
Data in the customer master record
General data
Company code data
Address
Communication
Control data
Payment transactions
Sales
Shipping
Billing
Partner usage
Output
Sales data
IMG for Sales
Hide
Sales group
Statistics group
Customer group
Pricing procedure
Product proposal
....
Required
Optional
Display
Customer Master - Selecting Fields for Data Groups
 Account groups are already set up in the R/3 system

Sold-to party

Ship-to party

Payer

Bill-to party
 Specific fields are selected for each of these account groups
 The selection of fields depends on the functionality of the
partner function needed.
Account group
0001
Account group
0002
Account group
0003
Account group
0004
Sold-to party
Ship-to party
Payer
Bill-to party
Sales
Sales 1
Sales 1
Sales 1
Shipping
Shipping
-----
-----
Billing
Billing 2
Billing
-----
Partner usage
-----
-----
-----
Documents
Documents
Documents
Documents
1. Controlling for authorization
2. Tax information
Customer Master - Combination Rules in Field
 The combination rule with the highest priority
determines the respective field status.
Account group marked as:
Transaction fields marked as:
Suppress
Display
Required
Optional
Suppress
Suppress
Suppress
Suppress
Suppress
1st priority
Display
Suppress
Display
Display
Display
2nd priority
Required
Suppress
Display
Required
Required
3rd priority
Optional
Suppress
Display
Required
Optional
4th priority
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Customer Hierarchies
 Create hierarchies to reflect the structure of the customer
organization.
 Use customer hierarchies
during sales order processing
and billing for determining
pricing.
ACME Co
Central
4711
ACME Co
ACME Co
North
South
4713
4712
ACME Co
ACME Co
Northwest
Northeast
4714
4715
Customer
2743
Unique
node number
Customer
2744
Customer
2742
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Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process
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Materials - Material Types
 The material type is part of the general data on a material.
 The departments responsible for a material type determine
which views must be maintained for a specific material.
A
Material
Quantity/Value update
Price control
Variance for each plant
Matl. type
 Description
 Department
 Internal/External POs
Account
assignment
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Selecting Fields for Materials - Influencing Factors
 An individual control table is available for each
influencing factor shown here and corresponds to a
group of fields in the material master.
Transaction
Procurement
indicator
Material type
Field selection
……………..
Plant
?
…………
…………
Industry sector
SAP
components
Sales &
Distribution
Financial
Accounting
Materials
Mgmt.
Controlling
Production
Planning
Fixed Assets
Mgmt.
R/3
Client / Server
ABAP/4
Quality
Mgmt.
Plant
Maintenance
Human
Resources
Project
System
Workflow
Industry
Solutions
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Materials - Material Status
 You can define different kinds of material status and
for each status, how the system will react when an item
is created in a sales document.
Material Status
Quotation
Standard Order
Discontinued part
Error
Warning
Technical defect
.
.
.
Error
Error
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Product Hierarchies
 Product hierarchies are used for pricing and analysis.
 In the Standard SAP setup, they can be defined with up
to 18 characters and three levels.
Level
00001
Tools
1
2
3
0000100001
Electrical appliances
000010000100000001
Electric screwdrivers
000010000100000002
Electric drills
0000100002
Compressors
000010000200000001
Electric drills
000010000200000002
Electric drills
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Customer-Material Information
 You can define customer-specific data for a material in
a customer-material information record. This may incl:

cust.-specific matl. #

cust.-specific matl. description

Customer-Material Information
Sales organization
: 1000
Distribution channel : 01
Customer
: C1
Material
M1
M2
.
.
Description
Computer AG
Computer UG
.
.
Customer-specific data
Material
Description
M234
Computer 550C
M598
Computer 1650B
.
.
.
.
Sales order
Sold-to Party: C1
Customer Matl
M234
M598
Description
Computer 550C
Computer 1650B
Qty
10
3
etc.
Proposing Items Using Product Proposal
 Material combinations which you use frequently can be
stored in product proposals.
Product proposal
Validity period
Search term
Item
10
20
30
: 5000002
: 01/01-12/31
: SD product proposals
Material
M1
M2
M3
Qty.
40
50
30
Material or
material + quantities
Sales Order
Sold-to party: C1
Item
10
20
30
Material
M1
M2
M3
Qty.
40
50
30
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Bill of Materials - An Example
 By making the appropriate settings in Customizing,
you can copy the components in the bill of material to
a sales order as one “item”.
Computer
Mouse
Monitor
Screen
CPU
Casing
Keyboard
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Southern California
Bill of Material - Bill of Material Categories
 The bill of material category serves as a link to
different objects.
 You can create bills of material only for objects existing
in the material master.
Material
master record
Material BOM
A
Material
Equipment BOM
Equipment
master record
Document
master record
Document BOM
Sales order
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Bill of Material - Where They Are Used
 Item status controls how BOM items are processed in
related application areas:

Production (operations)

Construction (technical data)

Pricing

Sales & distribution (order quantity)

Plant maintenance (maintenance information)
University of
Southern California
Topics
 The Implementation Guide
 Sales Orders and the Customer Master
 Customizing the Material Master
 Configuring the Billing Process
University of
Southern California
Billing Types
 The billing type controls the entire billing document.
 Billing types are dictated by the type of the reference
document.
Invoice
Pro forma invoice
Invoice list
Cash sale
Billing
Types
Cancellations
Credit/debit memo
Returns
Inter-company billing
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The Billing Process
 Each billing document requires a reference document.
Order Document Types
Inquiry
Type: IN
Delivery Doc.
Billing Documents
Quotation
Standard
Order
Type: QT
Type: OR
Type: LF
Type: F2
Header
Item: TAN
Schd. line
Header
Item: TAN
Header
Schd. line
Returns
Type: RE
Type: LR
Type: RE
Header
Item: REN
Cash Sales
Type: BV
Immediate
Type: LR
Credit
Type: CR
Type: RE
Billing Documents
 You can reference either an order or a delivery
document when creating an invoice.
 This is configured in the IMG by the item category.
Std. Order
Delivery
Invoice
Std. Order
Delivery
Invoice
or
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Credit / Debit Memos
 However, with credit / debit memos, you can only
reference the credit / debit requests (sales documents).
Delivery
Order
Invoice
Credit request
Credit memo
Debit request
Debit memo
or
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Returns
 Credit memos are created with reference to the returns
(sales documents) and NOT to the returns delivery.
Sales Order
Delivery
Invoice
Returns
delivery
Credit memo
or
Credit request
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Data Flow
 You can influence the data flow from reference
documents to billing documents by:


Billing types

Copying control for items
Copying control for header
For example
- payer
- item number
- prices
- texts
Delivery
Order
Doc. flow
Data flow
Invoice
For example
- ship-to party
- quantity
- texts
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Copy Control
 As just mentioned, how data is transferred in the billing
process can be influenced by the copy control data.
Header
Item
Target
Source
Billing
type
Delivery
type
F2
LF
Target
Source
Source
Billing
type
Delivery
type
Item
category
F2
LF
TAN
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Billing Quantities
 Delivery and order quantities are referenced in billing.
 You can create a billing document with reference to an
order for quantities already delivered.
Billing
Billing Quantity
With reference to an order
Delivery quantity minus quantity
already invoiced
With reference to a sales document
(e.g., credit memo)
Order quantity minus quantity
already invoiced
With reference to a delivery
(e.g., billing doc. Types F1 and F2)
Delivery quantity minus quantity
already invoiced
Pro forma invoice F5
Order quantity
Pro forma invoice F8
Delivery quantity
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Pricing in Billing Documents
 You can specify a pricing type for each billing document
type and item category.
Price: Material M1
Price: Material M1
Discount
from
from
from
1.pc
10.pc
20.pc
10.00
9.50
9.00
January
1.pc
10.pc
20.pc
11.00
10.50
10.00
50.00
100.00
March
Invoice
Order
M1
20 pc
20 x 9.00
Manual discount
1%2%-
M1
10 pc
10 x 9.50
Manual discount
Delivery
M1
A
10 pc
Pricing type:
A Price components are copied and updated (scale
redetermined).
B Pricing is carried out again.
Invoice
M1
10 x 10.50
Discount 2 %
Invoice
B
10 pc
C
M1
10 pc
10 x 10.50
Discount 2 % & manual
C Manual price components are copied, pricing carried out
for all other components.
Invoice
D Price components are copied as is from the reference
document.
M1
10 pc
10 x 9.00
Manual discount
D
Key Points (1)
 The Implementation Guide (IMG) enables the project
team to match the business requirements with the SAP
standard software and customize the transactions to
the needs of the organization.
 You can minimize the time an effort needed to create
sales documents by thoroughly maintaining the
customer master and defining all types of business
partners.
 The account group allows you to select data fields for
maintaining the master data.
 By classifying materials by material types, you can
specify which views for a material are to be maintained.
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Key Points (2)
 When maintaining material master records, you can
specify (in the IMG) which fields are to appear, to be
required or optional, or are to be blocked.
 You can store customer-specific information on
individual materials (e.g. customer material numbers
and descriptions) in customer-material information
records. This enables you to create orders using
material numbers specified by the ordering party.
 When you frequently sell combination of materials, you
can simplify sales order creation by creating product
proposals.
 You can also create BOM’s to combine several
materials for use in SD.
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Key Points (3)
 Billing documents always reference a previous
document.
 Reference documents will dictate the billing document
type.
 The flow of data is controlled:

by the programs

by billing types

by copying control tables
 You can determine copying control at:

the header level

the item level
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