SAP SD – My notes

Session: Credit Management:

Typical functionality of credit management is to check the credit line of a customer Once the credit line is exceeded (the dues are not paid), the customer is blocked for

further transactions/processing.a) Credit control area (CCA): Org. element which handles the credit limits of a customer

Path SPRO IMG Enterprise struc. Definition Financial accounting Define control area.

Important fields

(i) Update: Valid values 000012, 000015, 000018.000012 – Open sales orders, Open delivery & open billing doc values.Open sales orders: Created a sales order yet to create a delivery for that sales order.Open delivery: Created a delivery document & it is not billed yetOpen billing: Created a billing doc & it is yet to be cleared(payments from the customer) .000015 – Considers only open delivery & open billing doc values000018 – Considers only open delivery value for sales order & open billing doc values.

(ii) Risk category: Type of risk – Financial condition of a customerStandard SAP contains valid values – 001 Low risk, 002 High risk, 003 Medium risk

Imp: Risk categories are assigned to the individual customers in the transaction code, FD32

(iii) Credit limit : The total value mentioned here is applicable to individual customer who falls under the credit control areaImp: Increase or decrease the credit limits of specific customers can be done in the transaction code, FD32High risk customer – Low credit limitsLow risk customer – High credit limits

Imp FAQ: What is the difference between the credit limits you mention in FD32 and the credit limit you mention in credit control area definition??Answer: Credit limits that are mentioned in the credit control area is applicable to all the customers for whom the credit limits are not maintained in FD32.

b) Assignment of CCA: Once the credit control area(CCA) is created/defined the next steps would be

o Assign company code to the CCAo Assign the sales area to the CCAo After the assignment the credit control area is to be changed in the customer

master Sales area date Billing tab as shown below

c) Risk categories definition & assignmentPath – SPRO IMG Financial accounting Accounts Receivable & Accounts payable Credit management Credit Control accounts Define risk categories

d) Credit groups definition: It defines at what level (Sales order, Delivery, Goods issue) you are blocking a customer once he reaches the credit limit.Path – SPRO IMG Sales and distribution Basic function Credit Management/Risk management Credit management Define credit groups new entries

e) Assignment of Sales documents and delivery documents to CCA:Path – SPRO IMG Sales and distribution Basic function Credit Management/Risk management Credit management Assign Sales documents and delivery documents

f) Define automatic credit control:Path – SPRO IMG Sales and distribution Basic function Credit Management/Risk management Credit management Define automatic credit controlCredit control area + Risk category + Credit group = Credit control check

Important fields

(i) Derivation in % - It signifies the deviation upon the credit limit value mentioned in the credit control area definitionEx – 0% is no deviation is allowed and it should strictly abide by the credit limit mentioned.

(ii) Number of days: The credit limit is unchecked for the number of days mentioned here. Generally used the sales during the festive season and year end.

(iii) Item check – For each and every line item entered , the credit line amount is checked by adding the line item amount to the update group amount and if it exceeds the credit line amount then the system will stop further processing

(iv) Credit limit seasonal factor – The credit limit can be increased or decreased during a time period mentioned here.

(v) Static credit limit check – For the credit limit evaluation the system would consider all the open orders which are due for delivery irrespective of the horizon period.

(vi) Dynamic credit limit check - For the credit limit evaluation the system would not consider the open orders whose future delivery date falls beyond the horizon period. For ex – If we mention 1 month horizon period , then the system would ignore all the open orders amount whose delivery date falls beyond the horizon period 1 month. This is the main difference between static and dynamic credit limit check.

(vii) Max doc. value – We can define the limit of a single order value i.e the maximum order amount allowed in a sales document.

(viii) Critical fields – If the critical fields such as payment terms , inco terms, prices are changed then the documents can be blocked using this field.

(ix) Max. open item% - Maximum open items % based on the days oldest item field.Irrespective of whether the credit limit is reached or not , an order can be blocked based on the maximum open items%(i.e no of items for which the payment is not done).

g) Maintaining the credit check of a specific customer using FD32:

Specify the customer no and the credit control area which is already created Provide the credit limit amount and the risk category group and save

Session - Shipping:

Shipping point definition Path SPRO Enterprise structure Definition Logistics execution Define,copy,delete, check shipping point.

Key points in define shipping point:

o Country and Departure zone are the two key fields in the route determination.o Factory calendar would determine the holidayso Determine load. Time and Determine pick/pack time – These two fields are key in

determining the Loading date and Goods issue date populated in the shipping tab of item schedule lines

Shipping point Assignment Path SPRO Enterprise structure Assignment Logistics execution Assign shipping point to plant.

Note: Single plant can have multiple shipping points and one shipping point can be assigned to more than one plant

Shipping point Determination

Three important key fields which determines shipping point

o Shipping condition from Customer master and Material mastero Loading group from Material master

o Delivering plant as per the sales order

Shipping condition + Loading group + delivering plant = Shipping point

Path SPRO logistics execution Shipping Basic shipping functions Shipping point and good receiving points determination Assign shipping points

Route Determination Path SPRO logistics execution Shipping Basic shipping functions Route Route determination Maintain route determination.

V.imp - Key fields in this route determination – 1. Departure country and zone ( Shipping point)2. Destination country and Transportation Zone (Customer master – General data –

Address tab)Click on Route determination without weight group (Order)

3. Shipping conditions from Customer master(SC)4. Transportation group from Material master(TGroup)

Delivery

Path Create sales order Go to VA02 Sales document DeliverOr Use TCODE – VL01NError message: No schedule lines due for delivery up to the selected dateResolution: Goback to delivery order screen and change the selection date to future delivery date as mentioned in the sales order.

Steps in creating a deliveryo Enter storage location and save the documento Open the delivery document in change mode (VL02N) and enter the picked quantity if

no ware house present in the storage location. Save the document and this completes the delivery document creation

o If there is any warehouse no assigned to the storage location then we need to create a transfer order (LT03) to the transfer the goods. Or in the overview screen of the delivery document, click on the subsequent functions in the standard menu bar to create the transfer order. After creating the transfer order, go to the change view of delivery doc and enter the picked quantity to complete the delivery document creation.

o PGI (Post goods Issue): Click on the Post goods issue button to post the goods issued as part of the delivery document which is created.V.imp.. Effects of Post Goods Issue: -1. The warehouse stock of the material will be reduced by the delivery quantity.(SD-MM integration point)

2. The value changes are posted to the balance sheet account in the inventoryAccounting. (The value of finished goods will be reduced): SD-FI integration point.

3. The Billing due list (VF04) will be updated automatically. The delivery document after the PGI it will get updated here in the billing due list.

4. P G I is automatically updated in the Document flow.

5. The Accounting Effect: COGS account (Cost of goods) will be debited and inventory account will be credited.

In the document flow, select the GD goods issue document and click on the display document or use TCODE MB03. Click on the accounting documents button and select

accounting in the drop down. We can see here that the COGS account is debited and inventory account is credited.

Collective processing of Sales Orders: To combine the multiple orders for customer we have to check the field “OrderCombination” either in the corresponding “Customer Master or in the Sales Order”In order to combine the orders, the following data must be same for all thoseorders.1. Ship to Party, 2. Shipping Point, 3. Delivery Date.Logistics Sales & Distribution Shipping & Transportation Outbounddelivery Create Collective processing of documents due for deliveryVL10A – Sales orders{VL10A – Gives the list of sales orders that are due for delivery}On the “Fast Display” screen specify the shipping point, delivery creation date,ship to party & select Execute icon.

The system gives the list of all orders, which have above three fields in common(that are due for delivery)

Select the required orders to be combining & select the button “Create delivery inbackground” {on Top}Select the button “Log for Delivery Creation” {on Top} Shift + F4The system generates a group number, which contains the delivery documentcreated.

To see the delivery document created select the group number & select thebutton “Documents”. {On Top}

For the delivery doc created complete the Picking & Post goods issue process. Define Delivery Document types

In the delivery process the delivery document type controls how the delivery is tofunction. The structure of the delivery document is very similar to a salesdocument type in that a delivery document has a header and item structure.Path SPRO Logistics Execution Shipping Deliveries Define Delivery Types(OVLK)Standard delivery document types Ex: -LF Delivery With reference to Sales orderLO Delivery without order referenceLR Returns DeliveryBV Cash sale Deliver

Key fields in Delivery document typeo Document Category: “J” is the document category for delivery.o Number Range Int/Ext Assignment: Specify the No range for the Dly documents

Creating Number ranges for deliveries: - [VN01]SPRO Logistics Execution Shipping Deliveries Define Number Rangesfor deliveries

o Item Increment : Specifies how the items are incremented in the deliverydocument processing.

o Order Required: - Specifies whether a reference document is required to createthe delivery document.

o Default order quantity: “DL” – Order type Sched – Same order quantity mentioned in the sales order will be copied into delivery document.

o Storage location rule: Specifies the rule with the help of which, how the system automatically proposes a storage location for the items in the delivery document.MALA Shipping point / plant / Storage conditionRETA Plant/ Situation (SITUA) /storage ConditionMARE MALA then RETA (back up procedure)

o Delivery Split – WH Number: - If we check this field, the delivery can be splitbased on the warehouse Number.

o Automatic Packing: - If we check this field the automatic packing proposal isretrieved, when a delivery is created.

o Screen Sequence Group: - The screen sequence group for delivery is “LF”o Display Range: - Specifies whether all items should be displayed OR only sub

items will be displayed.

Assign delivery doc. type to the desired sales doc. type In the define sales document type screen , mention the appropriate delivery type which you want the system to take whenever you create a sales order with this document type.Go to transaction Maintain sales order type (VOV8)

Delivery Item category determination A delivery item category is similar to the sales document item category, this controls how the item is to behave in the delivery document.

To define delivery item categories, use the following menu path.

SPRO Logistics Execution Shipping Deliveries Define Item Categories for deliveries (0VLP)

Impo If we create delivery with reference to the item categories, then the item category in the

ref document will be copied to the delivery document.o If we create the Delivery without reference, the Item Category Is “DLN”

Key fields in Delivery doc. item category typeo Document Category: “J” is the document category for delivery.o Material Number ‘0’ Allowed: Specifies whether we can enter an item in the

document without specifying the material. This is normally used for including the text items in the delivery such as User manuals, Brochure etc.

o Check Quantity ‘0’: - Specifies how the system reacts, if the delivery quantity is“0” during delivery document processing.

o Check Minimum Quantity : - Specifies whether the system checks the minimumdelivery quantity, specified in the material master & if so, determines how the

system reacts if the min. quantity is not met.o Check over Delivery: - Specifies how the system reacts, if the delivery quantity

exceeds the original order quantity . No dialog/warning message : Used for delivery related billing.Error message : Used for Order related billing.

o Availability Check Off: - Specifies whether the system carries out an availabilitycheck for the items in the delivery document

o Rounding: - Specifies whether rounding is permitted or not.o Relevant for Picking: - Specifies whether the materials are relevant for picking

process or notImp note: Certain items such as Text items or Service items are not relevant forpicking.

o Storage Location Required: - If we check this field, during the deliverydocument processing, we must enter the storage location for the items.

o Determines Storage Location: - If we check this field, the system automaticallydetermines a storage location for the delivery items.

o Don’t check Storage Location: - Indicates whether the system should run acheck for the storage location that was determined.

o Automatic Batch Determination: - This is regarding the batches.

Item Category Determination in Deliveries [0184]

If we create the delivery with reference the sales document, the system is going to copy the item category from the reference document to delivery document with the help of copying controls. So the item category determination is not required here.

If we create the delivery without reference we need to assign the item categories.

SPRO Logistics Execution Shipping Deliveries Define Item Category Determination in Deliveries(0184).

We need to assign the item category in the combination of

Delivery Document Type Item category Group Usage Higher lever item category

Creating a delivery without sales order reference:

Create Delivery document type without order reference( Standard delivery type without order reference - LO Go to VL01N and click on without order reference

OrDirectly go to VL01NO

Enter all the details inside and save the delivery. Picking and PGI and create the billing document.

Standard item category for delivery without order reference is “DLN”

Session: Billing

The billing process could be order- or delivery-related, and may include billing of standard deliveries as well as the creation of debit and credit memos.V.imp : Delivery or order related billing is controlled by the billing relevance field in the item category type. Whenever we create the billing document in VF01 we should fill in the appropriate entry Sales order or Delivery doc. Number in the document reference field.For ex: For TAN – Billing relevance is “A” – Delivery related billing

For BVN(Used for Cash sales) – Billing relevance is “B” – Order related billing.

Create Billing Document [VF01]

Logistics Sales & Distribution Billing Billing document VF01 - createIn the document field as discussed above specify the reference document number, on the basis of which the billing document needs to be created.Just like for delivery document, there is no need to enter the billing doc. type because we had already assigned the delivery document type and billing document type inside the sales order type definition.So in VF01, just key in the reference document and click on execute icon.

Save the billing document which would automatically create an accounting document based on the configuration settings or else we need to manually release the billing document to create an accounting document. Below is the typical document flow of a standard OTC cycle.

Imp note: The reference doc to create the billing document is controlled by itemCategory. The field is “Billing Relevance”. Whatever we mention here, systemwill take that doc as reference to create the billing document.Imp note: When we save the invoice the company’s revenue account will beCredited & the customer account is debited.

Imp note: If the accounting document is not generated, try the following setting.We can manually release the doc to Accounting in the following wayGo to VF02 go to billing document in the main menu and select “Release toAccounts”

Invoice Cancellation: - VF11

Logistics Sales & Distribution Billing Billing document VF11 – Cancel

In the document field specify the billing document no. To be cancelled & selectexecute. Go to invoice cancellation details & save it.

Imp note: When we save the invoice cancellation, the values that are alreadyposted to FI are reversed.

V.Imp - OTC cycle cancellation procedure 1. First cancel the Invoice in VF11, then the status of the delivery document will be

changed back to being processed2. Reverse PGI – VL09 to reverse the post goods issue.3. Go to VL02N delete the deliver4. Go to VA02 delete the sales order

Accounting document

Click on the accounting icon to view all the accounting documents which are generated for this billing doc. The system generates the following documents:1) Accounting document2) Profitability analysis3) Special purpose ledger4) Controlling documentOut of all this list, accounting document is important for SD consultant. All other documents are handled by the FI consultant.

Click on the account documents to display the document details.

For the accounting document to be generated, we have to customize the revenue account determination procedure.The amounts are posted to the respective G/L accounts based on the configuration settings in revenue account determination (VKOA).

Click on the payer record to view the details as shown.

Fields in the Accounting Document:Item: - Serial no 1, 2, 3, and 4..Posting Key: - 40 for Debit; 50 for Credit; 01 for CustomerAccount: - Specifies the G\L Account to which the amounts got postedAccount short Text: - Description of the Account.Assignment: - G\L account assignment.Tax Code: - Specifies the Tax code of the countryAmount: - Specifies the amount posted to the GL accounts. We can see the reconciliation account in the details of payer record.NOTE: - The reconciliation account cannot be seen in the accounting document.

Define Billing Types(VOFA)Path - SPRO Sales & Distribution Billing Billing Documents Define Billing types Define billing types -----------> Below are the standard billing typesF1, F2 - Invoice ; BV - Cash sale invoiceF5 - Proforma invoice for orderF8 - Proforma invoice for deliveryG2 - Credit MemoL2 - Debit memoS1 - invoice cancellation ; S2 - Credit memo cancellation

Note: There are no corresponding item categories types & schedule lines for billing document types like we have for sales order type.

Key fields in Billing document type

o Number range internal Assignment: - Specify the internal number range, for theBilling Document. No External number range here.There is no external number range for billing documents because of the legality associated with them and to maintain the consistency when submitted to government authorities.Note: We can delete Sales order & Delivery document, but we cannot delete an Invoice.We can only cancel the invoice.

o Item No. Increment : - Specifies the number, by which the item will be incremented in the billing document.

o Sales document category : - Specifies the document category for the billing.M Invoice, O Credit Memo & P Debit Memo

o Transaction Group : - The transaction group is: ‘7’ for billing document.o Posting Block : - If we check this field, the automatic transfer of billing document

to accounting document will be blocked. We have to manually release the accounting document in VF02 using the release to accounting button.

o Statistics : - Indicates whether the system stores the information from the billingdocument for the purpose of statistical analysis.

o Negative Posting : - Specifies whether the negative posting is allowed for billingdocument, i.e. a corresponding set posting on the debit side, reduces the creditside of the accounting & a credit posting reduces the debit side of the accounting.

o Relevant for rebate : - Specifies whether the billing document is relevant forrebate processing. {We have seen this field in 2 places 1.Sales Organization, 2.Cust M. Data}. All the three places should be checked to have the relevancy for rebate.

o Cancellation Billing Type : - Specifies the cancellation doc type for the billingdocument. (S1)

o Accounting Determination Procedure: - Specifies the revenue accountdetermination procedure.

o Output Determination Procedure : Specifies the output determinationprocedure: V10000, Application as: V3 & Output Type as: RD00

o Partners : Specifies the Header partner as: FK & the Item partner as: FP. Thiswill help us to copy the partner functions from Sales order/Delivery to Billing Doc.Note: - We do not have billing Item Categories in SAP. In Sales Item Category we controlthe billing items as well.

Invoice Print : - To take a printout of the invoice, go to VF02; from the initialscreen select the button “Billing Document” Issue output Printer OR Screen.

For print preview - Then select the message type RD00 and click on the print preview to view the output.

Language Change: - To change the language for print out go to VF02, from the overview screen select “Go to” Header OutputSelect the button change Output & Change the language.

Credit Memo

If the company has to pay something back to the customer, we need to createthe credit memo. The credit memo can be created with reference to the creditmemo request (G2)

1. Create Credit Memo Request : - VA01VA01 – Create, Order type is CRThe standard Item Category is G2N , in which we don’t check the field “Schedule lines allowed”Release the billing block, which is default for credit memo order type. Specify the order reason & save itImp note: No Credit management relevant fields checked in this order type

No Shipping/delivery relevant fields checked in this order type Always order related billing type – G2 (Std credit memo billing type/Invoice)

2. Creating Credit Memo : - With reference to credit memo request, we can createthe credit memo. (VF01- Create)

Doc type is “ G2 ”, Item Category is G2N In the Doc. field specify the Credit memo request Number & Execute.

In real time there would be a billing block for all the credit memo requests, so only authorized business head can remove the block. Go to VA02 remove the billing block Again go to VF01 and save the billing document after removing the block.

To check the error log in any transaction -> Go to Edit(Menu bar) Log

Imp note: When we save the credit memo company’s revenue account is debited& the customer’s account is credited.The system generates accounting doc, which is posted to FI

Debit Memo

If the customer has to pay something back to the company, we need to createthe debit memo. We can create debit memo with reference to the debit memorequest (L2)

1. Creating Debit Memo request: VA01 – Create, Order type is: DRThe standard Item Category is L2N , in which we don’t check the field “Schedulelines allowed”Remove the billing block, if any. Specify the order reason & save it2. Creating Debit Memo: - With reference to debit memo request, we can createthe debit memo.VF01- CreateDoc type is “ L2 ”, Item Category is L2N In the Doc. field specify the Debit memo request Number & Execute.

NOTE: - When we save the debit memo company’s revenue account is credited& the customer’s account is debited.The system generates accounting doc, which is posted to FI.