Bonn � Boston D. Rajen Iyer Effective SAP® SD Get the Most Out of Your SAP SD Implementation Contents at a Glance 1 Introduction and Overview ..................................... 15 2 Sales and Distribution Master Data and Configuration: Applications and Processing ........... 59 3 Key Techniques in Sales and Distribution .............. 91 4 Influence of SD on Materials Management ............ 127 5 Supply Chain Extension of Sales and Distribution ............................................................ 165 6 Financials and Controlling: Key Influence and Interface ........................................................... 193 7 Influence of SM and QM in SD Processes .............. 223 8 Reports, Analysis, User Interface and Development Tools for SD ...................................... 257 9 Data Transfer, Outputs, Communication, and Interfaces with Other SAP Systems ................. 299 A Glossary .................................................................. 349 B About the Author .................................................... 355 Index ....................................................................... 357 7 Contents 1 Introduction and Overview ...................................... 15 1.1 Sales and Distribution in the SAP World ..................... 17 1.1.1 Meeting Customer Requirements ................... 18 1.1.2 Shipping Materials to the Customer ............... 20 1.1.3 Getting Paid for Services or Goods ................. 20 1.2 Key Influence of the Organizational Structure ............. 22 1.2.1 Organizational Units ...................................... 23 1.2.2 Linking Organizational Structures ................... 33 1.3 Key Processes in Sales and Distribution ...................... 36 1.3.1 Sales Document Structure .............................. 38 1.3.2 Sources of Document Data ............................. 39 1.3.3 Controlling Business Processes in Sales ........... 41 1.4 What is New in mySAP ERP? ...................................... 45 1.4.1 Functionality Enhancements Within SAP R/3 Releases ........................................... 47 1.4.2 Sales Order Management ............................... 49 1.4.3 New Features in mySAP ERP 2005 ................. 51 1.4.4 SAP Analytics ................................................. 52 1.5 Summary .................................................................... 54 1.6 The Information Contained in This Book ..................... 54 1.7 How to Read This Book .............................................. 57 2 Sales and Distribution Master Data and Configuration: Applications and Processing ............ 59 2.1 Master Data in Sales and Distribution ......................... 60 2.1.1 Customer Master Data ................................... 61 2.1.2 Material Master Data ..................................... 66 2.1.3 Condition Master Data ................................... 70 2.2 Sales and Distribution Processes: Data Determination and Processing ............................ 73 2.2.1 Plant .............................................................. 75 2.2.2 Shipping Point Determination ........................ 75 2.2.3 Route Determination ..................................... 76 2.3 Controlling Sales Document with Sales Document Type ................................................. 77 2.3.1 Configuring Sales Document Types ................ 79 Contents 8 2.3.2 Controlling Sales Document with Item Category ........................................ 82 2.3.3 Controlling Sales Documents with Schedule Line Category ......................... 85 2.4 Summary ................................................................... 89 3 Key Techniques in Sales and Distribution ............... 91 3.1 Pricing Fundamentals ................................................. 92 3.1.1 Pricing Overview ........................................... 93 3.1.2 Header Conditions ........................................ 96 3.1.3 New Pricing .................................................. 97 3.1.4 Pricing Configurations ................................... 97 3.1.5 Access Sequence ........................................... 97 3.1.6 Condition Type .............................................. 98 3.1.7 Procedure Determination .............................. 98 3.1.8 Working with Condition Records ................... 101 3.1.9 Price Report .................................................. 103 3.1.10 Special Functions ........................................... 104 3.1.11 Special Condition Types ................................ 106 3.1.12 Determining Taxes, Rebates, and Agreements ................................................... 109 3.2 Making Partner Determination Work for Your Business ....................................................... 113 3.2.1 Partner Functions .......................................... 114 3.2.2 Customer Master and Account Group ............ 116 3.3 Working with Text Items ............................................ 119 3.3.1 Text in Sales and Distribution Documents ..... 119 3.3.2 Copying and Referencing Sales Texts ............. 121 3.4 Copy Control and Requirements ................................ 121 3.4.1 Configuring Copy Control in SD ..................... 122 3.4.2 Data Transfer Routines and Requirements ..... 124 3.5 Summary ................................................................... 125 4 Influence of SD on Materials Management ............. 127 4.1 Availability ................................................................. 128 4.1.1 Availability Check Control ............................. 130 4.1.2 Back-Order Processing .................................. 131 4.1.3 Configuration Setting .................................... 132 4.1.4 MRP Types .................................................... 133 4.1.5 Transfer Requirements ................................... 135 Contents 9 4.1.6 Batches .......................................................... 137 4.1.7 Bill of Material ............................................... 138 4.2 Cross-Company Sales .................................................. 138 4.2.1 Sales Order for Cross-Company Sales ............. 139 4.2.2 Inter-Company Billing .................................... 141 4.3 Inter-Company and Cross-Company Stock Transfer ..... 144 4.3.1 Stock Transport Orders .................................. 144 4.3.2 Materials Resource Planning .......................... 145 4.3.3 Document Type ............................................. 146 4.3.4 Configurations Steps for Stock Transport Order ............................................................. 146 4.3.5 Shipping Process ............................................ 147 4.3.6 Goods Movement .......................................... 148 4.4 Third-Party Processing ................................................ 150 4.4.1 Ordering Through Third-Party Processing ....... 151 4.4.2 Goods Receipt ............................................... 153 4.4.3 Invoice Receipt .............................................. 154 4.4.4 Customer Billing ............................................. 154 4.5 Subcontracting ........................................................... 155 4.5.1 Procurement Process ...................................... 156 4.5.2 Goods Movement .......................................... 157 4.5.3 Sales and Distribution Delivery ...................... 158 4.5.4 Serial Numbers .............................................. 160 4.6 Agreements ................................................................ 161 4.6.1 Scheduling Agreements .................................. 161 4.6.2 Contracts ....................................................... 161 4.6.3 Scheduling Agreements vs. Contracts ............. 162 4.7 Summary .................................................................... 163 5 Supply Chain Extension of Sales and Distribution .............................................................. 165 5.1 Transportation with Logistics Execution and Shipment Execution .................................................... 166 5.1.1 Shipment Documents ..................................... 167 5.1.2 Individual vs. Collective Shipments ................ 169 5.1.3 Stages of Shipments ....................................... 171 5.1.4 Delivery Split ................................................. 172 5.1.5 Transportation ............................................... 173 5.2 Warehouse Management Basics and Business Process Outsourcing ................................................... 178 Contents 10 5.2.1 Basic Functions of Warehouse Management ................................................. 179 5.2.2 Interfaces with Other Applications ................ 180 5.2.3 Organizational Structure ................................ 180 5.2.4 Delivery Processes with Warehouse Management ................................................. 182 5.3 Decentralized Warehouse Management ..................... 186 5.3.1 WMS Applications ........................................ 186 5.3.2 Prerequisites for Connecting Decentralized WMS to an ERP System ........... 188 5.3.3 Inbound and Outbound Deliveries ................ 188 5.3.4 Distributed Model ......................................... 189 5.4 Summary ................................................................... 190 6 Financials and Controlling: Key Influence and Interface ............................................................ 193 6.1 Integration of Billing in SD Processes ......................... 194 6.1.1 Special Billing ................................................ 196 6.1.2 Creating Billing Documents ........................... 198 6.1.3 Payment Processing ....................................... 202 6.1.4 Reference Data for Account Posting .............. 203 6.2 Account Determination .............................................. 205 6.2.1 Ex Stock Sale Process ..................................... 206 6.2.2 Sale of Services .............................................. 206 6.2.3 Account Assignment Criteria ......................... 206 6.3 Financials Supply Chain Management ........................ 209 6.3.1 Financials Accounting .................................... 209 6.3.2 Electronic Bill Presentment and Payment ....... 210 6.3.3 Credit and Risk Management ........................ 212 6.3.4 Settings ......................................................... 213 6.3.5 Value Contract .............................................. 214 6.4 Interface with Profitability Analysis (CO-PA) .............. 217 6.4.1 Evaluation and Reporting .............................. 218 6.4.2 Profitability Analysis Procedures .................... 219 6.5 Summary ................................................................... 220 7 Influence of SM and QM in SD Processes ............... 223 7.1 Service Management .................................................. 224 7.1.1 Documents in Customer Services ................... 226 7.1.2 Notification Types ......................................... 228 Contents 11 7.1.3 Catalogs ......................................................... 231 7.1.4 Solution Database .......................................... 232 7.2 Processing Service Orders ........................................... 232 7.2.1 Order Components ........................................ 233 7.2.2 Advance Shipment ......................................... 234 7.2.3 Customer Consignment .................................. 234 7.2.4 Paging and Mobile ......................................... 236 7.3 Complaints and Returns .............................................. 238 7.3.1 Business Processes and Scenarios ................... 240 7.3.2 Customizing Settings ...................................... 241 7.4 Quality Processes in SD .............................................. 244 7.4.1 Certification Planning ..................................... 245 7.4.2 Certificate Processing ..................................... 247 7.4.3 Batch Determination ...................................... 248 7.4.4 QM in Delivery .............................................. 249 7.5 Workflow ................................................................... 250 7.5.1 Workflow Architecture ................................... 251 7.5.2 Workflow Design ........................................... 253 7.6 Summary .................................................................... 254 8 Reports, Analysis, User Interface and Development Tools for SD ....................................... 257 8.1 Quick Views, Query, Lists, and Reports ....................... 258 8.1.1 QuickViewer and Query ................................. 258 8.1.2 SAP Query ..................................................... 260 8.1.3 Lists and Report ............................................. 262 8.2 Sales Information System ............................................ 265 8.2.1 Analysis ......................................................... 266 8.2.2 Information Structures ................................... 268 8.3 SAP BW and Reporting Requirements ......................... 271 8.3.1 InfoObject ..................................................... 273 8.3.2 InfoCube ........................................................ 273 8.3.3 InfoProviders ................................................. 274 8.3.4 Types of Data Stores ...................................... 274 8.3.5 BW Architecture ............................................ 274 8.3.6 Business Content ........................................... 276 8.3.7 Sales Analytics ............................................... 277 8.4 User Productivity ........................................................ 278 8.4.1 Internet Sales Representative Role ................. 280 8.4.2 Enterprise Portal ............................................ 285 Contents 12 8.5 Modifications and Enhancements—Concepts and Application ......................................................... 287 8.5.1 Concepts ....................................................... 287 8.5.2 Personalization .............................................. 289 8.5.3 Modifications and Enhancements .................. 290 8.6 Summary ................................................................... 297 9 Data Transfer, Outputs, Communication, and Interfaces with Other SAP Systems .................. 299 9.1 Data Transfer ............................................................. 300 9.1.1 Techniques in Detail ...................................... 301 9.1.2 Data Transfer Workbench .............................. 303 9.1.3 Legacy System Migration Workbench ............ 304 9.1.4 Direct Input .................................................. 305 9.1.5 Intermediate Documents ............................... 305 9.1.6 Business Application Programming Interfaces ...................................................... 306 9.2 Output Control .......................................................... 306 9.2.1 Output Determination: Applications .............. 306 9.2.2 Output Determination: Condition Techniques .................................................... 308 9.3 Communication ......................................................... 309 9.3.1 Synchronous and Asynchronous RFCs ............ 310 9.3.2 Configuration Set-Up ..................................... 311 9.3.3 RFC Utilities .................................................. 313 9.4 Interfaces with Other Systems .................................... 314 9.4.1 Basic Parts of the Business Framework ........... 314 9.4.2 Function Builder ............................................ 316 9.4.3 Business Application ...................................... 318 9.5 Access Shared Data .................................................... 319 9.5.1 ALE Applications ........................................... 320 9.5.2 IDoc Applications .......................................... 324 9.6 Interfacing with the GTS System ................................. 329 9.6.1 SAP Foreign Trade and GTS ........................... 330 9.6.2 Plug-In .......................................................... 331 9.6.3 Configuration ................................................ 333 9.7 Sales Process with mySAP CRM ................................. 337 9.7.1 MySAP CRM Architecture ............................. 339 9.7.2 Internet Sales and Customer Self-Service ....... 341 9.7.3 Interaction Center ......................................... 342 Contents 13 9.7.4 Integrating mySAP CRM with mySAP ERP ...... 342 9.7.5 MySAP CRM Customization ........................... 343 9.8 Summary .................................................................... 344 9.9 Book Conclusion ......................................................... 345 Appendix ........................................................................ 347 A Glossary ................................................................................ 349 B About the Author .................................................................. 355 Acknowledgments ................................................................ 355 Index ............................................................................................ 357 91 This chapter will cover the key (or most popular) techniques used in Sales and Distribution. You will become familiar with condition tech- niques as they are used in pricing. I will also go over some of the powerful determination techniques with partner function and text. Last but not least, you will learn about data transfer to the subse- quent document from the preceding document. 3 Key Techniques in Sales and Distribution SAP R/3, Enterprise version, and mySAP ERP use some common techniques to apply your business rules to the processes you are designing in the system. Let’s say that in a sales transaction with a customer, you would like the final price to be based on the price of the material, any discount application, freight, and taxes. This determination depends on the business rules associ- ated with that transaction. Similarly, you might like to have some kind of text determined, based on the document; e.g., a sales order has a purchase order text, and a delivery note has the shipping instruction text. You would like some of the text items to be copied to subsequent documents; e.g., a special instruction for customer entered in the sales order copied to the delivery note. Creating a delivery document involves copying information from the sales order, such as the materials and quantities. You can define control data for the flow of documents. Configuration allows you to define the specifications for copy requirements and data transfer. Different customers can assume different roles in a business transaction. The customer who places the order doesn’t necessarily have to be the same cus- tomer who receives the goods, or who is responsible for paying the invoice. Assigning partner roles in SAP Sales and Distribution (SD) determines the functions of particular partners in the sales process. We will examine the key configuration techniques involved in setting up partner functions and deter- minations. Key Techniques in Sales and Distribution 3 92 3.1 Pricing Fundamentals Pricing procedure is associated with the sales document and provides the dif- ferent components needed to come to final agreements with customers on the price they will pay for the goods or service. Prices are stored as data within condition records. The values for condition could be for base price, surcharge, and discount. These are defined by condition types, which deter- mine the category and describes how the condition is used. Table 3.1 shows the condition for pricing and the different business applica- tion of this condition. These different business applications or categories of conditions are identified by their condition types. The control data provides the basis for calculation type and identifies any scale bases for value, weight, quantity, volume, or time period. Price conditions are maintained through transaction under the menu path: SAP Easy Access � Logistics � Sales and Distribution � Master Data � Condi- tions. Condition type configuration can be accessed via the path: Tools � Cus- tomizing � IMG � Execute Project � SAP Reference IMG � Sales and Distribu- tion � Basic Functions � Pricing � Pricing Control � Define Condition Types. All condition types permitted in pricing are available in the pricing proce- dure. In the pricing procedure, you can define how the system should use the condition by specifying the requirements for each condition. The sequence in which the system accesses these conditions in the business doc- ument is also determined in the pricing procedure. Table 3.2 displays a typ- ical pricing procedure. The reference level provides a method to specify a dif- ferent basis to calculate the condition type and to group conditions for subtotal. The pricing procedure might contain any number of subtotals. Condition Application Condition Type Control Data Price Price List Material Price Customer Specific PR01 PR00 Fixed amount based on time period. Discount/ Surcharge Customer Material Price Group Customer Material K007 K029 Calculation Type—Percentage, amount, or weight Scale Bases—value or weight Table 3.1 Price Condition Application Pricing Fundamentals 3.1 93 Pricing condition in the pricing procedure can be marked in the following ways: � As a mandatory condition � As a manually entered condition � For statistical purpose only Last but not least, we have the access sequence, which is assigned to the con- dition type (except for the condition types configured as header condition). Access sequence is the search that defines the sequence in which the system reads the condition records for a condition type. Figure 3.1 shows an access sequence overview. Access performed by access sequence is made using a condition table. A condition table is a combination of fields that form the key for a condition record. You can also make access dependent on certain requirements. 3.1.1 Pricing Overview Let’s take a typical example of how an item price is determined in a docu- ment. When item information is entered, the system runs a check for appro- priate pricing procedures. The relevant pricing procedure is determined based on the sales area, customer, and sales document type (these are entered in the header of a sales document). Once it finds the right pricing procedure, the system reads the condition type listed in the pricing proce- dure sequentially, as maintained in the pricing procedure. Based on this con- dition type, it determines the access sequence. Step Condition Type Description Reference Level Manual Requirement 1 2 3 4 5 6 PR00 KA00 RA01 Price Gross Value Offer Discount Discount Discount value Net Value 2 3—4 X 2 2 2 2 7 8 9 HA00 HD00 Header discount Freight Net Values 2 — X — 10 MWST SKTO Output tax Cash disc. basis Cash discount — — — Table 3.2 Pricing Procedure Key Techniques in Sales and Distribution 3 94 The system reads the access sequence. The sequence of the condition tables represents the search strategy to find the relevant condition record. Each condition table represents an access, which can be made for a condition record with the specified key. The system searches for valid condition records with the key specified by the condition table (accesses). If the first Figure 3.1 Access Sequence PR00 K007 K020 Price Discount (%) Customer Discount Access Sequence - PR02 Access Sequence - K002 Access Sequence - K020 PR02 Customer Material Price list / currency/ material Material The access sequence moves from specific to general Pricing Fundamentals 3.1 95 access does not find a valid condition record, then the system searches for the next access using the next condition table. Figure 3.2 gives a pricing overview. After the system finds a valid condition record for an access, the system reads the condition record and copies into the sales document the value that corresponds to the scale. The whole process is repeated for each condition type until the system has finished the entire pricing procedure. Figure 3.2 Pricing Overview Note The prices, surcharges, and discounts determined automatically by the system can be changed manually and are then marked as manual changes. In condition records, you can specify limits within which a manual change can be made; e.g., for making a discount, which can only be changed between 1 % and 3 %. In addi- tion to determining conditions automatically, conditions can be entered manually in sales documents. Conditions are marked as having been entered manually. Pricing Procedure 1. Price PR00 2. Discount KA00 3. Discount RA01 Condition Type: PR00 Access Sequence - PR02 Access Seq – PR02 Condition tables: 1. Customer / material 2. Price list / currency / material 3. Material PR00 records 1. No record exists 2. Valid record exists Document Item 10 120 pieces PR00 Price $ 99 KA00 Discount $ 1 - RA01 Discount $ 2 - % Key Techniques in Sales and Distribution 3 96 The condition maintenance screen can be accessed through SAP Easy Access, following the path: Logistics � Sales and Distribution � Master Data � Condi- tions. Figure 3.3 shows you the different condition maintenance options with the SAP Easy Access. 3.1.2 Header Conditions Conditions also can be entered at the document-header level, as header con- ditions, and are valid for all items. These header conditions are automatically distributed among the items based on net value. The basis of distributing the header conditions can be changed in the pricing procedure by selecting the appropriate routine; e.g., weight and volume, in the Alternative formula for Condition Base Value (AltCBV) field. Figure 3.3 Condition Maintenance