Marking reference field as mandatory when posting a document

(Customer invoice, Vendor invoice, Customer Credit Memo and others)

This document details the procedure in marking the reference field as mandatory while posting a document like Customer invoice, Vendor invoice, Customer Credit Memo and others.

Go to transaction OBF4

Click on the document type you require. For this demo, let us consider the document type DG (Customer credit memo). Select the document and click on Details.

Following screen appears:

From the above screen shot (the one highlighted), there is an option to mark whether the reference number should be made mandatory or not. Check the check box adjacent to "Reference number".

Now let us try to post a document (Customer credit memo) using the transaction FB01.






Without entering the Reference number, enter the other mandatory information and press ENTER.


Following message would appear:

Configuring Availability Check

Availability check

1. Availability check is an integral part of the business process that determines if the required delivery quantity can be met on a required delivery date. For this purpose the system takes into account pre-delivery activities such as scheduling for picking or packing times and the time taken to produce or obtain the material. It also performs several background functions such as Backorder processing, rescheduling and ATP quantities.
2. Backorder processing: processing of a sales order that has not been fully confirmed or not confirmed at a certain delivery date.
3. Rescheduling: is a proposal of how – confirmed quantities already assigned to a sales order can be reassigned to other sales orders that have a higher priority.
4. Available to promise (ATP): is a process of checking the available quantities of a material. The ATP quantity consists of warehouse stock + planned receipts (incoming stock) – planned issues (outgoing stock). to examine stock on hand (CO09) proceed to logistics – sales & distribution – sales – environment – availability overview.
5. Replenishment lead time (RLT): is the time taken for the material to become available either internally (in house production) or externally (from a vendor). The most important things to consider during an external procurement are purchasing and MRP2 (procurement) views of MMR where the processing time for purchasing, planned delivery time and goods receipt processing time are taken into account. On the other hand internal procurement is based on in house production time (MRP 2 view) goods receipt processing time or alternatively RLT time, which is found on MRP 3 view.
6. RLT (Replenishment Lead Time) is the time taken for the material to become available. RLT is only used when doing an ATP check (Available To Promise). The value of RLT for a material is specified on material master record.
7. There are three types of availability checks –
   • Check on basis of ATP quantities.
   • Check against product allocation.
   • Check against planning.

Configuring Availability check through Checking Groups

1. The checking group + checking rule determine how the availability check is to be performed.
2. The checking group determines whether and how the system checks the stock availability and generates requirements for material planning. The checking group defines what type of requirements will be passed on i.e. summarized requirements (daily/weekly) or individual requirements for each sales order.
3. The checking rule applies to how the availability check is to be carried out at the transaction level. Note that you must define checking rules for each individual application such as for production orders for example. In Sales and Distribution, the checking rule is specified internally within the system and cannot be changed.
4. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.
5. Briefly explaining the above – checking group determines which type of requirement to be passed on to MRP whether it be individual or summarized and checking rule which is at the transaction level and can be configured independently for each application module, determines which stocks, receipts and issues to be taken into account. For performing an availability check checking group has to work in conjunction with checking rule.
6. Advantages of individual processing over summarized processing –
   Backorder processing is possible.
   You can access (MD04) order, line and schedule line individually which gives a greater control on available stock and requirements placed on stock.
   The system automatically uses individual requirements in case of special stock items.
7. Required data for the Availability check to be carried out –
   The Availability check must be switched on at the requirement class level.
   The Availability check must be set at the schedule line level.
   A requirements type must exist by which the requirements class can be found.
   A plant must be defined in the sales order for each schedule line item (in other words plant must be defined for every material in MMR).
   A checking group must be defined in the material master record in the MRP3 screen in the availability check field.
8. Configuring Availability check and defining Checking Groups –
   Checking groups are introduced into the sales order based on the setting in the material master record.
   SAP standard checking groups are 01 – summarized requirements and 02 – individual requirements or you can create your own by copying the standard ones.
   Total sales and total deliveries columns are there to configure a checking rule to sum up requirements to post to MRP either individually or by day or week.
   Block quantity required can be set if you want several users to be able to process the material simultaneously in different transactions without blocking each other.
   The no check indicator is CHECKED when you DO NOT want the system to carry out ATP check.
9. Defining material block for other users – the block check box is an indicator that enables you to block material master records of a particular material during the availability check and restrict other users from accessing same master record and reserve the material. If the block is not set, two users can confirm the same material at the same time for two different orders, not knowing if the stock is available or not. If you select this field, the material is blocked during the availability check and other users cannot: a) Make changes in the material master record. b) Create purchase orders for the material. C) Create orders for the material.
10. Defining default values for checking groups - Checking groups are introduced into the sales order based on the setting in the material master record.
    However if there is no entry present in the material master record for the checking group, a default value can be set here, depending on material type and plant.
    This default value will be used by the system depending on the material type mentioned in MMR and plant in sales order.
    If an entry exists, this default value is over written by MMR.
11. Controlling Availability Check – in this section, you tell the system what stock on hand and what inward and outward movements of stock it must take into account when performing the availability check in addition to whether or not to consider the replenishment lead time.
12. These settings are based on the checking group that is assigned to the material master record and the checking rule that is predefined and assigned to the sales and distribution transaction.
13. These settings carry out control both for sales order and delivery as well. This is due to the fact that you may want to include specific stock or incoming stock for the sales order, yet at the time of the delivery only include physical stock on hand waiting to be shipped.
14. It is possible to indicate to the system that you would like the availability check NOT TO CHECK the stock at the storage location level. This indicator is used to set the scope of the availability check.
15. It is used to switch off the check at storage location level. You create a reservation for a particular storage location. However, the scope of the availability check is set in such a way as to exclude the storage location. In this case, the system carries out the check at plant level only and does not take the storage location into account that is specified in the reservation.
16. Should you not want the system to automatically check RLT, you may indicate so here. RLT is the time taken for a material to become available. It is only used when doing an ATP check and is taken from MMR.
17. defining the elements in the availability check entirely depends on the business needs, but a few tips are given under –
    When controlling the Availability check at the time of the sales order, a purchase requisition does not necessarily indicate by it is going to come into the plant.
    A shipping notification on the other hand - a confirmed purchase order – is a good indicator of receiving stock on a specified date.
    It is always recommended not to select the shipping notifications for the delivery requirements type as you may not actually receive the stock into plant or warehouse for which you are creating a delivery.

Multi-level Packaging in Delivery

Before creating the packaging material you have to go to:

IMG-Logistics Execution-Shipping -Packing.

• Define packaging material types- it can be anything like boxes crates, etc. in this you have to maintain the output determination procedure, output type, plant determination, packaging material category, generate delivery items, number assignment. you can copy from standard also.

• Then go to define material group for packaging materials - here you maintain the four digit code and the description. Actually, this group is nothing but similar products which require similar packing products. For Ex. Nokia Phones all types they are basically packed first into a polythene bag. So here nokia phones can become a material group for packaging materials and polythene bag can become the packaging material type which can include different sizes and types of polythene bags.

• Define Allowed Packaging Materials - Here you assign the shipping group for packaging materials to the packaging material type. This is related to your material master data of the packaging material which you create.

• Now go to MM01 to create a packaging material. use material type as Packaging material then inside the system will take the item category group as VERP. Then in the Basic Data1 screen you have the material group for packaging material (MGPM). Select the proper one. Now in the Sales:General/ Plant screen you have to maintain data regarding the packaging. you select the MGPM same as the basic data 1 screen, then select the packaging material type, the allowed pkh weight, allowed pkg volume. This is important because if the weight of your finished item is 2 KG and in the allowed pkg weight you enter only 1.5 KG, then while you carry out the packing process in delivery, the system will give you error," packaging weight exceeded." The assignment in the IMG creen for Define allowed packaging materials should be same as u mention in the material master. Then save your material master for packaging material.

• VA01 create the order, save it.

• VL01N enter shipping point, go to edit - pack- you will face a screen with 2 parts. In the top part you select your packaging material in which you want to pack your finished item, enter the system will assign a number to that material. Now select the Material in the top part and the finished one in the lower part and click on the Icon Pack. Here one thing has to be taken care of. Suppose if you want to pack only one finished item in one packaging material, then in the lower part of the screen you have a field for partial quantity here you change it to 1. system will prompt quantity changed. now you select the material in the top part and the one in the lower part and click on the PER PART. QTY ICON. In this way the system will pack only one finished item in a single packaging material. Packing is done go back, select the picking and do the PGI. save the delivery and create the invoice.

HANDLING UNITS. (Used for Multi level packing)

Basically handling units come into picture when you want to carry out multi level packing. suppose you want to pack Nokia phone first into a polythene bag, then this polythene bag is again packed in to box. like that. then this box will become a handling unit.

For this go to :

IMG - Logistics General - Handling Unit Management - Basics.

First create all your packing materials using MM01 and type as packaging material. Maintain all the assignments in IMG in Logistics General.

• In basics you do the same thing as you did in the packing in logistics execution. like you create the packaging material type, then MGPM and their assignment.

• Then go to External Identification - and maintain the number ranges for the handling units that you want and assign the same to your packaging material type.

• Now that you have done everything, create the order, save it, in VL01N, enter shipping point, go to edit - pack - do the same thing as i have told you in the step no. 6 (above). now after doing select the PACK HUs TAB . NOW IN THIS SCREEN IN THE TOP PART YOU WILL SEE THE ALREADY PACKED MATERIAL. In that same part again select your next packaging material that is BOX. enter the system will assign the number to the BOX.

• Now select the material which you have just entered and the materials which were already packed in the lower part of the screen and click on the ICON PACK.

• In the same way again in the top part of the screen you select your next level packaging material and press enter. the system will assign a number to it. now select the material you have just entered and the previously packed material in the lower part of the screen and click on the icon PACK.

• In this way you can carry out multilevel packing. just take care of the allowed packing weight and the number of units you have to pack in the next packaging material.

Enterprise Structure Configuration

Enterprise Structure:

1.Maintaining Sales Organization
Sales Organization is an organizational unit responsible for the sale of certain products or services.

IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check Sales organization

2. AssigningSalesOrganization to Company Code
This assignment ensures all the sales made through this Sales Organization are accounted for in the assigned Company Code (Company Code is created by FI Consultant).

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales Organization to Company Code

3. Maintaining Distribution Channel
Distribution Channel is the way, in which Products or Services reach Customers.

IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check distribution channel

4. Assigning Distribution Channel to Sales Organization
This assignment ensures, a Sales Organization can supply Materials to Customers through this Distribution Channel.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution > Assign distribution channel to sales organization

5. Maintaining Division
Division is a way of grouping materials, products, or services.

IMG -> Enterprise Structure -> Definition -> Logistics - General -> Define, copy, delete, check division

6. Assigning Division to Sales Organization

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign division to sales organization

7. Setting up Sales Area
All the sales are made from a particular sales Area. For creating a Sales Order Sales Area is compulsory.

IMG ->Enterprise Structure -> Assignment -> Sales and Distribution -> Set up sales area

8. Assigning Sales Organization- Distribution Channel- Plant
Plant is created by MM Consultant.

IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales organization - distribution channel - plant

9. Define Shipping Points
Shipping Point is the Organizational element, which is responsible for shipping the Materials to the Customers.

IMG -> Enterprise Structure -> Definition -> Logistics Execution -> Define, copy, delete, check shipping point

10. Assigning Shipping Point to Plant
This assignment ensures that goods from different Plant can be dispatched from different Shipping Points.

IMG -> Enterprise Structure -> Assignment -> Logistics Execution -> Assign shipping point to plant

Note: Ensure to do the under mentioned configuration also though it is not in Customizing node of Enterprise Structure.

11. Defining Common Distribution Channels for Master Data Use
The purpose of this activity is to define distribution channels which have common master data..

Procedure
Access the activity using one of the following navigation options:

IMG Menu -> Sales and Distribution -> Master Data -> Define Common Distribution Channels
Transaction Code: VOR1

12. Defining Common Divisions for Master DataUse

The purpose of this activity is to define distribution channels which have common master data..

Procedure
Access the activity using one of the following navigation options:

IMG Menu -> Sales and Distribution -> Master Data -> Define Common Division
Transaction Code: VOR2

Order to Cash Cycle

A customer orders some items from your company by creating a sales order (Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. You will post goods issue using VL02N but the material document created will be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items.

(Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document.

(TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc).

This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your AR account in FI.

You will have to remember that these are not a required sequence. Some times, you may configure your system to create a SD invoice as soon as you create a sales order or you may not create a shipping document at all.

This is the position where Functional Consultant would come into picture and study the company's order to cash process and configure the SAP system to do so.

Differences between Cash Sales and Rush Order

Cash Sales:In this type of order CS, as soon as you save the sales order the delivery is automatically created as same date and billing will also be generated at the same date as soon as you save the delivery document.

In a rush order, the customer picks up the goods immediately, or you deliver them on the same day as when the order was created. When you save the rush order, a delivery is automatically created in the standard system. Billing the rush order takes place as normal, after the delivery.

In the standard system, sales document type RO is saved for rush orders with immediate delivery type LF. Once the goods have been removed from storage, the goods are picked, and goods issue is posted. Once the billing documents are created (for example, in collective processing), invoice papers are printed and sent to the customer.

Rush Order: In this type of Order RO , The delivery will be created as soon as you save the sales order. But you bill the customer later.

In cash sales, you can process an order for when the customer orders the goods, picks them up, and pays for them immediately.

The delivery is processed at the same time as when the order is created and a cash invoice is printed immediately: billing is therefore related to the order, unlike rush and standard orders. Receivables are not created for the customer, as they are for rush and standard orders because the amount in the invoice is immediately posted to a cash account.

In the standard system, sales document type BV (CS) is saved for cash sales with immediate delivery type BV.

When the sales employee creates a cash sale, the system automatically proposes the current date as the date for delivery and billing.

Once the order has been posted, a delivery with type BV is created immediately in the background and the system prints a document that is used as an invoice for the customer.

The invoice papers are controlled with output type RD03, contained in the output determination procedure for order type CS.

Configuration of Pricing Procedure

In SD, the steps to configure Pricing procedure are as under:

Step 1:

Condition table: If existing condition table meets the requirement, we need not create a new condition table. Considering the requirement for new condition table, the configuration will be done in SPRO as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Table (select the required fields combination, which will store condition record).

Step 2:

Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence. Considering the requirement for new sequence, the configuration will be done in SPRO as follows:

IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to access sequence.

Step 3:

Condition Type: If existing condition type meets the requirement, we need not create a new condition type. Considering the requirement for new condition type, the configuration will be done in SPRO as follows:

IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Type. It is always recommended to copy an existing similar condition type & make the necessary changes. Here we assign Access sequence to Condition type.

Step 4:

a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the necessary changes in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in SPRO as follows:

IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Maintain Pricing Procedure.

b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows:

IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Determine Pricing Procedure.

Step 5:

Condition record: Condition record is a master data, which is required to be maintained by Core team / person responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT, LSMW, etc.

Configuring credit card for the orders

To implement the credit card functionality in SAP, do the following:

Go to transaction VOV8.

Select the required order type and double-click on the same.

Scroll-down the window to find the following fields:

In the highlighted section above, we mention the payment type. In the "Paymt card plan type" select the value "03 (Payment card)" or use F4 functionality to select the same. Here are the F4 values:

In the checking group, enter the value "01(Standard)".

Differences between Credit Note, Credit Memo and Credit for returns

Credit Note, Credit Memo and Credit for returns are all the same and used interchangeably. In general, Credit Note and Credit Memo are used to pass the credit to the customer if they are charged too much.

"Credit for Returns" is used to return the amount to the customer when the defective products are returned, or a complaint is made about a service performed.

Extending/Reducing the credit limit for a specific period

Go to transaction OVA8

Select the required record and click on “Change”.

Following screen appears:

As noticed in the above screen, we can maintain the percentage by which the credit limit should be either extended/reduced and also can provide the period for which it is applicable.

Following is the F1 help screenshot of the same:

Following is the screenshot after entering some values in the “Credit Limit Seasonal Factor”:

Maintaining Shipping instructions

Shipment Instructions are used to instruct the carriers or forwarders or drivers anybody who actually would be shipping your goods from your warehouse to the customer's site. This instructions could be asking the driver to Handle the goods with care or might be instructing him to make sure the delivery is at the customer premises by so and so date and time or once the delivery is handed over to the customer taking a receipt signature from the customer.

Example if you order something from a store , after the goods are shipped to you the driver takes a signature on a receipt note or collects the check or cash form you or takes the inspection done signature, this is the shipping instructions for the driver.

Shipping instructions are maintained in the delivery document itself (Transaction VL01N).

In the delivery document, click on GOTO-->Header-->Text

MRP: PR to PO Conversion

Go to Transaction SU3 and under Parameters Tab find the Parameter ID "EVO" and check if any value is assigned. If so, make a note of the value.

Now go to transaction SPRO

Click on SAP Reference IMG -> Material Management -> Consumption-Based Planning -> Procurement Proposals --> Define Conversion of Purchase Requisition into Purchase Order (as shown below)

Check for the value we have noted earlier (the value of the parameter EVO in SU3). Select the read and check the check boxes appropriately. We have to select at least one of the check boxes from RefPRs or A/P PR to have all all items copied to PO.


Please use the F1 help for detailed information on the check boxes.