fd consignment process 1.0

8/13/2019 FD Consignment Process 1.0

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206604137.doc DocumentSAP Sales Order Manangement

Scenario 1 - Consignment Process

SAP Sales Order Management

Scenario 1

Consignment Process

Functional Design Document

Version: 1.0

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Usage guidelines and Specific Instructions:

Document Flow- The flow of the document is generic. Specific changes to the flow will e re!uired to edone " the compan" team to suit the compan" conte#t.

Document Content-The content e#plains the functional specification in a generic manner. Specificchanges are re!uired to e made to meet compan" re!uirement.

Section 1 The overall usiness re!uirements along with the assumptions$ dependencies$ targetaudience$ processing method$ output t"pe and volume of transactions are to e clearl" specified in thissection.

Section 2 This section caters to the detailed functional re!uirement. The process flow diagram is to ecompulsoril" designed and documented here. %iner details li&e the section and sorting criteria$ SAPtransaction are to e furnished in this section.

Section 3 -All the configuration steps to carr"ing out the functional design needs to e documented here.

Section 4 The section needs to cover all the &e" usiness test conditions that the design has to satisf".

Section All issues that have cropped up so far and their present status are to e highlighted in thissection.



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Document Information

Deli!era"le #ame 'onsignment Processing

$ut%or (uruva"urappan Ra)an&wner Accenture

'eam S*

Status *raft

(ersion 1.0

Document )e!iew * Sign-off

Signatories

)ole #ame Signature Date

)e!iewers

)ole #ame Comments )ecei!ed Date

)e!ision +istor,

(ersion #o Date $ut%or )e!ision Description

1.0 0+,1-,2012 (uruva"urappan Ra)an *raft

&t%er )elated Documents

Related Document Comment

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Contents

1. Overview and Scope................... .............. .............. ............... .............. .............. .............. .............. ............ ...... ...... ...

1.1 Functional Description..........................................................................................................................................6 1.2 Dependencies / Constraints...................................................................................................................................

1.! "ssumptions.........................................................................................................................................................

1.# $ransaction %olume.............................................................................................................................................

1.& Fre'uenc and $iming.......................................................................................................................................... 1.6 Processing $pe...................................................................................................................................................

1. *utput $pe (*nline/Print/+preadseet)................................................................................................................ 1. -etention -e'uirements........................................................................................................................................

1. "udience and Distriution..................................................................................................................... ............ ...

!. Detailed "unctional Re#uirements........................ .............. .............. .............. ............... .............. .............. ....... .....10

2.1 Functional +peci0ication......................................................................................................................................1 2.2 Process Flo Diagram........................................................................................................................................12

2.! +"P $ransaction.................................................................................................................................................2 2.# 3rror 4andling.......................................................................................................................................... .........22

2.& +ecurit and "utori5ation..................................................................................................................................22

2.6 anguage details.................................................................................................................................................22

2. Processing and *perational Considerations..........................................................................................................22

2..1 Per0ormance.................................................................................................................................................22

2..2 7atc -e'uirements......................................................................................................................................22

2..! Data 8aintenance -e'uirements...................................................................................................................22

2..# -e9use Details..............................................................................................................................................22

2..& 8ulti9compan, 8ulti9:urisdiction Considerations.........................................................................................22

2..6 *ter............................................................................................................................................................2!

2. Cange 8anagement -e'uirements....................................................................................................................2!

$. Design ............. .............. .............. .............. .............. ............... .............. .............. .............. .............. ..... ...... ..... ...... ..!%

!.1 Design 0or Consignment Fill9up..........................................................................................................................2#

&'e (elow con)iguration need to (e carried out:..................... .............. .............. .............. ............... ......... ..... ...... .....!%

Sales document *+, needs to (e created )rom t'e standard document t-pe +,.......... ......... ..... ..... ......... ..... ..........!%

Document t-pe *+, must (e made cop- relevant )or deliver- t-pe *" and (illing t-pe *"/ pro)orma invoice!%

2tem categor- *+,3 created (- cop-ing standard item categor- +,34 t'is will (e made pricing relevant )or

trans)erring prices and e5cise duties in t'e pro)orma invoice and )urt'er in t'e e5cise invoices.......... ... ......... ..........!%

!.2 Design 0or Consignment ;ssue ............................................................................................................................2#


Sales document *+6 needs to (e created )rom t'e standard document t-pe +6.......... ......... ..... ..... ......... ..... ..........!%

Document t-pe *+6 must (e made cop- relevant )or deliver- t-pe *" and (illing t-pe *"!. .................. ...... .....!%

!.! Design 0or Consignment -eturn .........................................................................................................................2#


Sales document *+R needs to (e created )rom t'e standard document t-pe +R................... ..... ................. ...........!%

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Document t-pe *+R must (e made cop- relevant )or deliver- t-pe *R and (illing t-pe *R6 Credit memo )or

Returns........................................................................................................................................................................!%

!.# Design 0or Consignment Pick9up.........................................................................................................................2&

&'e (elow con)iguration need to (e carried out:..................... .............. .............. .............. ............... ......... ..... ...... .....!7

Sales document *+A needs to (e created )rom t'e standard document t-pe +A................... ..... ................. ...........!7

Document t-pe *+A must (e made cop- relevant )or deliver- t-pe *R........... ......... ..... ......... ..... ..... ......... ... ........!7

%. &esting Re#uirements..................... .............. .............. ............... .............. .............. .............. .............. .............. .......!

#.1 e 7usiness $est Conditions.............................................................................................................................26

#.2 $ecnical $est Conditions...................................................................................................................................26

#.! -isk and Controls $est Conditions................................................................................................ ......................26 #.# $esting Considerations/Dependencies ....................................................................................................... .........26

7. Outstanding 2ssues.......................... .............. .............. .............. .............. .............. ............... .............. .............. .......!8

. Appendi5.................. .............. ............... .............. .............. .............. .............. .............. ............... ....... ...... ...... ...... ...!9

6.1 =lossar o0 $erms..............................................................................................................................................2

Sales Document eader ; &'e sales document t-pes represent t'e di))erent (usiness transactions in sales4 suc' as

in#uir- processing4 #uotation processing4 and consignment stoc< processing. "or e5ample4 Document t-pes *+,4

*+64 *+R and *+A 'as (een created )rom t'e standard document t-pes +,4+64+R4+A....................................!9

Sales Document 2tem ; 2tem categories toget'er wit' t'e sales document t-pes represent t'e di))erent (usiness

transactions in t'e SAP s-stem. &'e item categories contained in t'e standard SAP R=$ S-stem4 toget'er wit' sales

document t-pes> represent t'e most common (usiness transactions. "or e5ample4 2tem categor- *+,3 'as (een

created )rom t'e standard item categor- +,3............. .............. .............. .............. .............. ............... ......... ...... ..... ...!9

Sc'edule line ; &'e division o) an item in a sales document according to date and #uantit-. "or e5ample4 i) t'e total

#uantit- o) an item can onl- (e delivered in )our partial deliveries4 t'e s-stem creates )our sc'edule lines and

determines t'e appropriate #uantities and deliver- dates )or eac' sc'edule line........................................................!9

Sc'edule line categor- ; A classi)ication t'at distinguis'es (etween di))erent


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1 &!er!iew and Scope

1.1 Functional DescriptionProvide a highlevel description of the usiness re!uirement that will e addressed.

'onsignment stoc& is merchandise that is stored at the customer location. The customer is not oliged topa" for the stoc& ecause consignment stoc& remains the propert" of compan" until the" are withdrawnfrom the customer special stoc&.

The consignment process is divided into following actions.1. 'onsignment fillup3 'onsignment fillup is stoc& transfer from compan"4s warehouse to customer

location owing to shortage of stoc& at the customer location. The stoc& needs to e seen andcontrolled " SAP due to that the stoc& remains the propert" of compan" even it e#ists ph"sicall"at the customer location. The stoc& also needs to e distinguished from other stoc& located atcompan" warehouses in SAP.

2. 'onsignment issue3 'onsignment issue is stoc& withdrawal from consignment stoc& forcustomer4s use. This action oliges the customer to pa" for the consumed stoc&. That means thatcompan" can create invoices once the withdrawal is agreed " oth parties.

+. 'onsignment pic&up3 'onsignment pic&up is stoc& transfer ac& to compan"4s warehouse fromcustomer location.

. 'onsignment returns3 'onsignment return is a return from consumption to consignment stoc&.The returned stoc& is controlled as consignment stoc& once again. And credit memo is involved topa" the amount ac& to the customer.

'lient would li&e SAP to support the whole consignment process. 5n order to support this scenario$ clientneeds following functions.

1. Transaction to send the stoc& from a client warehouse to a customer place as consignment stoc&.

6ther consignment processes than consignment fillup are as elow31. 'onsignment issue2. 'onsignment pic&up and returns

Indi!idual re.uirements for Consignment fill-upSales order t"pe 79 will e created " cop"ing standard SAP sales order t"pe 9 and ma&e use of it astemplate for this scenario.

#um"er range:o 79 :'onsignment fillup;3 0000000001 0


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Indi!idual re.uirements for Consignment )eturnBe will create following order t"pes for sales$ deliver"$ and illing " cop"ing standard SAP and ma&e

use of them as template for the scenario. Sales order t,pe:

o 7R copied from R.

Deli!er, order t,pe:o 7CR copied from CR.

/illing document t,pe:o 7R> copied from R>.

#um"er range for sales order:o 7R :'onsignment return;3 000000000 0


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1.2 Dependencies / Constraints

;ndicate an dependencies or constraints tat ma impact de?elopment, in terms o0 re'uirements 0rom

internal or e@ternal applications or teams, limited access to legac sstem, time constraints or data restrictions."lso, please speci0 scedule dependencies e.g., inter0ace or atc :os tat must run prior to [email protected]

Bot applicale.

1.3 Assumptions

*escrie an" assumptions made while completing this design. Bhat functionalit" is e#pected ofconfiguration or other developments that pass information to this development and,or retrieve theinformation processed " it :e.g.$ performance$ triggers$ e#ceptions$ etc.;I

%or sales department$ it ma&es heav" wor&load to manage this consignment process due to followingreasons.

1. The place is ph"sicall" far from Plant and stoc& movements cannot e seen.

2. Dan" activities are involved for consignment process especiall" for consignment issue such ascalculating actual goods issue !uantit"$ creating sales order and deliver order$ post good issueand etc.

1.4 Transaction Volume

at is te e@pected ?olume o0 data e@pected to e read and outputted troug te 0orm A

1.5 Frequency and Timing

at is te e@pected 0re'uenc and timing o0 processing A

1. !rocessing Type

Please indicate te tpe o0 processing used te reportE i.e. 7atc, -eal $ime etcA

1." #utput Type $#nline/!rint/%preads&eet'

Please indicate te tpe o0 output re'uired 0or te 0ormE i.e. 0ile 0ormat, printout, e@cel e@port etcA

+a?e to File

+end to Print

Donload to 3@cel (BoteG $is re'uires a -eal time, not 7atc report)

1.( )etention )equirements

;denti0 an re'uirement to retain te 0orm, 0or at period o0 time, and in at 0ormat. "lso indicate anarci?ing re'uirements.A

$ere is no retention period 0or te document itsel0.

1.* Audience and Distri+ution

;ndicate o te intended audience is 0or te 0orms, and i0 knon, te e@pected numer o0 users and distriution

metods emploed. "lso include an securit/access restrictions.A



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Audience ?roup se=Distri(ution 6stimated 3um(er sers

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2 Detailed Functional )e.uirements

2.1 Functional %peci,icationProvide a highlevel description of the functional re!uirements and stepsThe usiness delivers stoc& to a customer on consignment. This process is called the consignment fillup.The consignment fillup process is used to replenish the customer4s consignment stoc&.

'onsignment stoc& is monitored in the s"stem " individual customer and material. This t"pe of stoc& isreferred as special stoc&.

'lient 'ompan" maintains ownership of consignment inventories. 'onsignment processing offers theparticipating partners several advantages. 'ustomers store the consignment goods at their ownwarehouses. The customer can access the goods in the consignment warehouse at an" time. The" areonl" illed for the goods when the" are removed from the special stoc&.

Creating a consignment )ill;upThe consignment fillup process is used to replenish the customer4s consignment stoc&.(oods issue of the appropriate stoc& is posted from the unrestricteduse stoc& to consignment stoc&:special stoc&;. The goods remain the propert" of '6DPAEF.

Bhen "ou ship consignment stoc& to the customer$ "ou need to create a consignment fillup order :ordert"pe 79; as the first step. After saving a document$ "ou can print out an order confirmation and send it tothe customer if necessar".

The ne#t step is deliver" creation.

As a result of outound processing is carried out$ the following actions are made.

The relevant !uantit" is transferred under the same plant from regular inventor" to special stoc&for customer. Hence$ the total valuated stoc& for the plant remains the same.

The transaction is relevant for pricing as client wants to pass on the e#cise duties.

The ne#t step is proforma invoice creation and then the last step is to create the >#cise 5nvoice.

Creating a consignment issue'onsignment issue represents the customer consumption of consignment goods.This scenario starts from chec&ing !uantit" consumed from consignment stoc&.5n order to perform this step$ personnel of the sales department chec&s consignment stoc& information ata customer and stoc& movements involved. Then he or she prints out the information and sends it to thecustomer.

6nce customer receives the report " email$ fa#$ or etc$ he or she chec&s ph"sical stoc& and fill in theinformation on the sheet. Then he or she returns it to the personnel of sales department.5n some cases$ the personnel of the sales department go to the customer place and conducts ph"sicalchec& on current stoc& with the customer.

The personnel of the sales department chec& the stoc& and fills in the stoc& information on the screen orupload an e#cel sheet and saves the information. Then the addon program calculates the actual !uantit"consumed " the customer and creates sales order.



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Consignment Pic


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2.2 !rocess Flo- Diagram

5nsert a flow diagram descriing the screen se!uences , data retrieval se!uences

rocess Flow Diagram for Consignment fill-up

Bhen "ou ship consignment stoc& to the customer$ the relevant !uantit" is removed from regularinventor" in "our plant and is added to the special stoc& for the customer. The total valuated stoc& for theplant remains the same.

The transaction is relevant for pricing since the compan" wants to pass on the e#cise duties to thecustomer at this point.



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rocess Flow Diagram for Consignment issue

Bhen the customer removes consignment stoc& to use or sell $ the relevant !uantit" is deducted fromoth the customer4s special stoc& and "our own total valuated stoc&

The transaction is relevant for pricing since the goods now ecome the propert" of the customer



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rocess Flow Diagram for Consignment )eturn

5f "our customer wants to return goods to the consignment stoc&$ the relevant !uantit" is added to thecustomer4s special stoc& at the plant where the goods are returned

Since the ownership of the goods is passed from the customer ac& to "our compan"$ the transaction isrelevant for illing. 5n this case$ the customer receives a credit memo for the returned goods

To credit a return$ "ou must first approve the re!uest for a credit memo.



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rocess Flow Diagram for Consignment pic0-up

5f the customer returns consignment stoc& to "ou$ the relevant !uantit" is deducted from the customer4sspecial stoc& and is added ac& into "our regular stoc& at the plant where the goods are returned. Fourtotal valuated stoc& remains the same since the returned stoc& was regarded as part of "our owninventor" even while it was at the customer4s premises.

This transaction is not relevant for illing.



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2.3 %A! Transaction

SAP transaction that is re!uired to e#ecute this process

Steps for creating a consignment fill-up:

Sr.Eo.

SAP Transaction'ode

*escription

1. JA01 'reate a sales order using order t"pe /

>nter the re!uired data on the customer$ the consignment goods and thedelivering plant.

>nter all other relevant data and save the order.

2 JC01E 'reate a deliver" as the suse!uent document for this sales order and$

after pic&ing has een completed successfull"$ post goods issue.The underl"ing goods movement t"pe is a stoc& transfer. This ensures thatwhen goods issue is posted$ consignment special stoc& is created for thecustomer concerned. 5f special stoc& of this &ind alread" e#ists in thedelivering plant for this customer$ the goods are posted to this specialstoc&.

+. J%01 'reate a proforma invoice using 7%< illing t"pe to pass on the e#ciseduties.

. K155E 'reate e#cise 5nvoice to post the e#cise duties.

Steps for creating a consignment issue

Sr.Eo.

SAP Transaction'ode

*escription

1. JA01 'reate a sales order using order t"pe

>nter the re!uired data on the customer$ the consignment goods and thedelivering plant.


2 JC01E 'reate a deliver" as the suse!uent document for this sales order and$after pic&ing has een completed successfull"$ post goods issue.The goods are then reduced " the relevant !uantit" in the special stoc&assigned to the customer. This goods issue also reduces "our total stoc&.

+ J%01 5nvoice the deliver" which issues the consignment goods.



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Steps for creating a consignment return:

Sr.Eo.

SAP Transaction'ode

*escription

1. JA01 'reate a sales order using order t"pe ) .

>nter the re!uired data on the customer and the consignment goods.


2. JC01E 'reate a returns deliver" for the sales order :the s"stem automaticall"chooses deliver" t"pe 5);.

The goods issue posting cancels the goods issue posting which wascarried out when the consignment goods were issued.

This posting records the return of the goods to the plant where goodsreceipt was carried out.

+. J%01 'reate a credit memo for the consignment return "ou created in 1.

Steps for creating a consignment pic0-up:

Sr.Eo.

SAP Transaction'ode

*escription

1. JA01 'reate a sales order using order t"pe $.

>nter the re!uired data for the customer$ the consignment goods and theplant to which the goods are to e returned.


2 JC01E 'reate a returns deliver" for the sales order :the s"stem automaticall"chooses deliver" t"pe 5);.The transaction is completed " the goods issue posting which initiates atransfer posting from the customerLs special stoc& to "our plant stoc&.



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2.4 rror andling

;nclude potential errors, noti0ication procedures, and contingenc procedures.A

2.5 %ecurity and Aut&ori0ation

Detail te securit re'uirements 0or processing tis o:ect, an data integrit issues associated it te o:ect

and te teams tat ill e responsile 0or processing te o:ectA

2. anguage details

Specif" multi @ site re!uirements here e.g. language re!uirements

2." !rocessing and #perational Considerations

2.".1 !er,ormance

4igligt an per0ormance considerations tat sould e considered during te design, suc as restrictions toe@pected e@ecution time.A

2.".2 atc& )equirements

;nclude details re'uired 0or atc processing (e.g., ?ariant set9up, reconciliation re'uirements, etc.).A

+umission

+ceduling Considerations

-un Fre'uenc

+tart Date

+tart $ime

3stimated %olume Per -un

Parameters / File Dependencies

Ho Dependencies

Constraints %ariant -e'uired

Field $e@t

+uggested %alue

Description

Bot applicale (*nline onl).

2.".3 Data aintenance )equirements

ist an re'uirements 0or te maintenance o0 data, i0 re'uired.A

Bot applicale.

2.".4 )euse Details;nclude an in0ormation regarding te re9use o0 code 0rom oter de?elopments on oter pro:ects or e?en

itin te same pro:ect, suc as sample code or rele?ant documents/re0erences.A

Bot applicale.

2.".5 ulticompany ulti6urisdiction Considerations

Specif" multi @ site re!uirements here e.g. language re!uirements



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2.". #t&er

ist an oter special printing re'uirements like Duple@ Printing, Compan speci0ic standard eader 0ooter

etcA

2.( C&ange anagement )equirements

ist an additional training or cange management re'uirements, and descrie an special trainingre'uirements needed tis de?elopment.A

Bot applicale.

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3 Design

Con0iguration steps 0or eac su9processes

*ptions

-ecommendation and Decision

3.1 Design ,or Consignment Fillup

$e design or te con0iguration needed to run tis scenarioA

'%e "elow configuration need to "e carried out:

o Sales document 79 needs to e created from the standard document t"pe 9.

o *ocument t"pe 79 must e made cop" relevant for deliver" t"pe 7C% and illing

t"pe 7%< :proforma invoice;o 5tem categor" 79E created " cop"ing standard item categor" 9E$ this will e

made pricing relevant for transferring prices and e#cise duties in the proformainvoice and further in the e#cise invoices.

3.2 Design ,or Consignment 7ssue



o Sales document 7> needs to e created from the standard document t"pe >.

o *ocument t"pe 7> must e made cop" relevant for deliver" t"pe 7C% and illing

t"pe 7%2.

3.3 Design ,or Consignment )eturn



o Sales document 7R needs to e created from the standard document t"pe R.

o *ocument t"pe 7R must e made cop" relevant for deliver" t"pe 7CR and

illing t"pe 7R> :'redit memo for Returns;.



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3.4 Design ,or Consignment !ic8up



o Sales document 7A needs to e created from the standard document t"pe A.

o *ocument t"pe 7A must e made cop" relevant for deliver" t"pe 7CR.

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4 'esting )e.uirements

&ransaction Description Steps

4.1 9ey usiness Test Conditions

$e usiness le?el test conditions tat sould e used to ?eri0 success0ul operations.A

2D Condition 65pected Results C-cle Re).

4.2 Tec&nical Test Conditions

Document all tecnical scenarios associated it tis de?elopment. 3@amples ould include testing anerror90ree run, testing te e@ception processes, and testing te error andling.A

2D Condition 65pected results C-cle Re).

4.3 )is8 and Controls Test Conditions

Document all control scenarios associated it tis de?elopment. 3@amples ould include rounding o0

dollars and cents, audit trail processing, and reconciliation reportingA

2D Condition 65pected results C-cle Re).

4.4 Testing Considerations/Dependencies

ist an considerations tat are essential 0or application test planning (e.g. test tis e0ore "7C along it

D3F separate 0rom =4;). ;0 te de?elopment encompasses a user inter0ace, e@plain o it sould e tested asell as list an insigts as to o tis component could e tested te most e00icientl.



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6 $ppendi7

.1 :lossary o, Terms

&erm De)inition

Sales *ocument Header The sales document t"pes represent the different usiness

transactions in sales$ such as in!uir" processing$ !uotation processing$ and consignmentstoc& processing. :%or e#ample$ *ocument t"pes 79$ 7>$ 7R and 7A has eencreated from the standard document t"pes 9$>$R$A;

Sales *ocument 5tem 5tem categories together with the sales document t"pes represent

the different usiness transactions in the SAP s"stem. The item categories contained inthe standard SAP R,+ S"stem$ together with sales document t"pesM represent the mostcommon usiness transactions. :%or e#ample$ 5tem categor" 79E has een createdfrom the standard item categor" 9E;

Schedule line The division of an item in a sales document according to date and

!uantit". %or e#ample$ if the total !uantit" of an item can onl" e delivered in four partialdeliveries$ the s"stem creates four schedule lines and determines the appropriate!uantities and deliver" dates for each schedule line.

Schedule line categor" A classification that distinguishes etween different &inds of

schedule line. The categor" determines how the s"stem processes the schedule line.

Eumer ranges A numer range is provide for all document t"pe and will e uni!ue for

each of them. (For example, Sales order document type can have 4000000000 to4999999999).

Dovement t"pe A classification &e" indicating the t"pe of material movement :for

e#ample$ goods receipt$ goods issue$ ph"sical stoc& transfer;.

(oods movement A ph"sical or logical movement of materials leading to a change in

stoc& levels or resulting in the consumption of the material.

Availailit" chec& for sales The indicator is determined as a proposal in con)unction with

the respective re!uirements t"pe. 5t can e changed in individual shipping transactions.However$ onl" one restriction is effective.

.2 Additional %upporting/)e,erence Documentation

Standard &e5t 2D Content