Process Flow for 3rd Party Sales

Customize the third party sales in summary:

1. Create Vendor XK01

2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing

Some Light on Batch Determination

On batch determination, the whole process, how it is determined automatically in the order.

A1) Normaly we use batch determination at delivery level, because at the time of order material may or may not be created.for this material should be configured with batch and batch determination should be checked in sales views of material.

A2) Batch Determination during order Creation.
For this you need to maintain a Classes d for you Material. Depending on the Manufacturing process you can define the characteristics for your material.

Ex: Purity for Medicines, Resistance for Electric Items.

You need to create a class (You might have to create a new class type) which incorporates the characteristic.

First Create the Characteristic Using Ct04 and then using Cl02 create the Class including this characteristic.

Then in your material master Classification View Enter this class.

Then Create a Batch for the particular plant and Stor Loc using MSC1N.Give the value of the characteristics in this batch.

Then go to SPRO ->Logistics General ->Batch Management and maintain the Condition Technique (Procedure, Strategy Types and assignment to sales docs etc).

Then Create the Batch Determination Record using VCH1.

Consignment Sales Process in SAP

The consignment process in SAP standard consist of four small processes:

Consignment fillup (send materials to customer consignment).
Here you have a consignment fillup order and a consignment fillup delivery.

Consignment issue (issue materials from customer consignment to the customer).
Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).

Consignment return (return materials from customer ownership to customer consignment).
Here you have a consignment return order, consignment return delivery and a consignment return invoice. (the flow is very similar to a normal RE flow, but the materials are returned to the consignment stock instead of plant stock returns).

Consignment pickup (pickup consignment stock and move it to plant stock).
Here you have a consignment pickup order and a consignment pickup delivery.

Note that in consignment fillup and consignment pickup there are no invoices since there is no change of ownership for the materials.

How to perform a consignment order?

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back.

It is defined in 4 steps.

1. Consignment fill up:
Sales document type is KB
Item category KBN
shedule line category E1

In this step, you are not invoicing the customer. document flow is sales order ---- delivery item category. It will not be relevent for billing and pricing because you are not charging money for these goods in this step.

In schedule line category, you will set movement type 631 & set for availability check and TOR.

2. Consignment Issue.
Once the customer informed you that he used all the goods or partial goods then you will create consignment issue for used goods.

Sales document: KE
Item category: KEN
shedule line category: C0 or C1

Here you are invoicing the customer(because he used the goods). you are assigning the delivery documnt and billing document to the sales document.

In item category, you are setting relevent for billing, pricing, special stock.

In schedule line category, your setting is 633 movement type, relevent for availability check & TOR.

3. Consignment Return:
Customer found that some goods are damaged or he not able to sold the goods he want to send it back. that you are creating this document.

Sales document type: KR
Item category: KRN
Shedule line category: D0

You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing.
Your setting item category relevent for billing, returns, pricing, special stock.
Your setting schedule line item category: 634 movement type, NO availability NO TOR.

4. Consignment Pick up:
Even if you create the consignment return the goods are not come to direct to your plant. For that you need to create consignment pick up. here the owner ship is not changing so you do not need to create billing.
Assign retrun delivery to sales document type.

Sales document: KA
Item category: KAN
schedule line category: F0 & F1

Your setting item category relevent for returns. any shedule line category relevent for 632 movement type, MRP, availability check, delivery.

Now you check your plant stock. Stock will increase.

Rebate Process with Ref. to SO

If I need to make a rebate for a customer what is the process involved.

I am providing some info on rebates which I know.

Rebate agreemnts is based on agreement types.Conditon records which are created like B001 and B002 are linked to the rebate agreeements specifying the rebate rate + the accrual rates.condition records specify the rebate rate and the accrual rates.

Consider an example..

You decided to give a rebate of 3% to a customer whose sales vol is $1000 for a particular SO
Then the rebate value is $30..

Now when you make the rebate settlement by doiing the Credit memo and you decide to pay $27, then the accounting will be generated saying 27$ paid towards rebate and 3$ is the accrual which you owe to the customer

Procedure:
Rebate agreement: Transaction code: VB01
When you go to VB01, choose agreement type 0002 and then in conditions give
Material rebate
1 20
20 30

Now create a sales order with a material say M-11 for SOrg 1000 12 00 with QTY 6

Now check VB03 and see rebate agreemtent it will say Accruals 120 and payments 0
since your rebate is not settled still.

Rebate setllement
Go to VB02 enter ur sales deal no, and change the agreemetn status to B then enter Shift+F12 and enter the amount to be paid for example u say $80

Then check in rebate payments rebate doc and partial setllemetn since you have not paid in full.

View the credit memo request
Remove the Billing bloock Go to VA01 and put order type G2 ,,,go to create with ref and enter ur Sales order no,,,save the doc now...

Then go to VF01 and enter the credit memo reqst no generated...save the doc no and go to VF02 and say release to accounting

Now the final settlement will be this way

Accruals:120
Accrual reversed:80
Rebate pay:80
Amount payable:40

So the balance 40 is still the accrual

This is an example how a rebate will be processed with ref to a SO with an example.

SAP SD Tips by: Priyam

How to do a rebate agreement for a specific customers with settings details?

1. Create a condition by copying a a standard condition like BO03 in V/06
2. Assign this condition in the std pricing procedure with acct key as ERB and accural key as ERU - V/08
3.Create a Rebate Agreement in VBO1 (It is O = Owl and not zero). No will be generated
choose 003 - Customer rebates, enter the customer code, the validity and check for the status shld be in Open, click on the conditions enter the percentage and accrual amount. You also can have scales in this. Also you need to maintain the material for the settlement
4. Create a sales order for that customer and check the rebate agreement.
5. You can see the rebate condition in the invoice only.
6. Once you have posted the invoices, then go to rebate agrrement no. clicl on verficayion and it will show the order details.
7. For settlement change the status of the rebate to B - release for the settlement.
8. Credit memo request will b generated copy the no. and go to VA02, remove the blocks if any and create an invoice (credit memo).this will show u the accrual amount.
9. In both the invoice and the credit memo check the posting - accounting document it will show u the accrual as negative.
10. Again go to rebate aggreement and check the status it will show you D - Final settlement of agreement already carried out

Release strategy for Sales order

Is it possible to have release strategy for sales order?

Satish C Jha

As such SAP standard does not provide release strategy for sales orders similar to purchase orders. However this requirement of your can be satisfied through authorisation profiles; what I mean to say is that the sale order to be kept incomplete by the person who does not have the required authorisation & the person with proper authorisation will complete
it for further processing. This is only one way of meeting your requirement.

Balraj G Saigal

In order to emulate a release strategy similar to purchase orders you can use the status profile in sales documents (BS02). IMG-Sales and distribution-Sales-Sales documents-Define and assign status profile.

Sales Order Mass Change

I am a SAP SD consultant and recently faced with two new terms, mass order change and ALV , I also need to know about the transaction code.

There is transaction MASS which can be used to carry out mass changes in the sales order and other objects.

Mass Maintenance: (Use to change multiple fields in multiple documents at the same time). I have done mass change for customers; and orders should work the same way too.

1) Try t-code [MASS] and select sales orders & execute

2) Choose the table or tables for your selection criteria and also for fields you want to change.
Then execute. (suppose your selection criteria fields are from "sales order header data" table and the field you want to change, is in "item data" table)

3) Put in the sales documents(21000000, 21000001) you want to change and also the items(10) you want to change.
- click on " choose selection fields" button
- From the Pool, move the fields you want to the "select fields" using arrows.

4)From mass maintenace menu, click on "Enter new field values"
-click on "sales order item data" tab and choose the field you want to change.
(for example. I want to change plant for item 10)
-enter the new value (of the plant to be)
-click on "Adopt" and execute

5)In "sales order item data" tab, you see the new value of the plant you entered at the top and the old values of item 10 are below.
-click on "change field values" button. you see all the old values are changed to new values.
-save
Note: it will take some time depending on how many records you have.
Check: Go to [SM37] and see the status of the job you are running and once finished, export the spool file to a spreadsheet.
Before you do mass maintenance, go to the particular table in [se16] and get the results. Then do the mass maintenance and compare the results with this one. If they match, then you are good to go.

Note: If you have any user exits that affect the results, ask them to deactivate the MODCHECKS still you are done with mass maintenance & activate them again.

Is there a way to change the billing date on a ton of sales orders with same old billing date to a same new billing date?

This can be done using the mass transaction:
Transaction: MASS
Object Type: BUS2032
Tables: SD Document: Business item data
Sel Field: Billing Date (MASSSDHE and MASSSDPO)
- Or you can just select by document numbers (May be more efficient)
Execute - List will be provide for changes

Sel Chg Fld: Billing Date
Set new billing date value in the New Values field
Click on lower billing date column
Click on Carry out a Mass Change button
Click on Save button

Suggestion is to test this on a few orders in your development system to get a feel on how this works before applying this to any production data. MASS is a very powerful tool.

I have 100000 sales orders whith an incorrect price and I would like to do a massive condition update with pricing type "B" (Carry out new pricing). Is there a transaction or program for this?

Go to VA05 execute the report. Select all sales orders you want to update the price, Go to the Menu EDIT --> MASS Change ---> New Pricing. System will display all the re-pricing options. Select B. It will re-price all the sales orders.

You can try for one or two order initially check the results and if it is OK, then you can do for others.

How to Know that Sales BOM is working or not?

I have set up a sales BOM. How do I know or test that is is working or not?

Once you enter a material (for whch you have created a BOM thru CS01) in the sales doc another material pops under the main material line item as a sub-item (s). If it doesn't then your BOM isn't working.

In my experience BOMs work if all maintenance has been done properly.

A number of things to check is:

1. The bom hasn't been defined for the plant used, or you haven't defined the plant in SO.

2. Main item category - has BOM application SD01 been assigned to it?

3. Item categories for main items and sub-items have not been mainteined properly.

4. Sales items maintenance - You should assign item categories for BOM header items and sub-items to a specific sales doc.

5. Has the BOM itself been configured properly (i.e. right plant, BOM usage '5')?

6. Are you trying it out on an order created after all BOM maintenance was done?

7. Also , what's the 'Structure scope' set as? Anything except C may be useful here? We have that set to A, since our BOMs are all single-level. You could set it to B if BOM are configured multi-level.

Those are probably main reasons why BOM shouldn't work. Apart from that, just re-check your whole config - the truth is out there somwhere

SAP SD: Scheduling Agreement Vs Contract

What's the difference between schedulling agreement with normal order?
What's the condition for us to choose schedule line or order?

Both of them contains schedule line, price, quantity.

There are a couple major differences:

(1) - Schedule agreements allow you to have 2 different sets of schedule lines (VBEP-ABART). Standard SAP you should have two sets of tabs - of schedule lines. One Forecast & the other JIT. Forecast forwards the schedule lines to planning (seen in MD04) and JIT passes them to shipping (VL10). They can be identical or different. Typically these are used for component supplier customers (namely Automotive). The customer will provide you 4-10 weekly buckets (usually a
Monday date) of future forecast qtys. Also send you 1-2 weeks of individual FIRM ship dates - which are entered on the JIT. It comes down to the customer not knowing exactly what they need next week, but they don't want to suprise you with a large order qty, where your lead times are 5+ days. The forecasted qtys they sent last week should account for this.

(2) Cumulative Quantities are tracked and influence how the schedule agreement passes requirements to both forecasting and shipping. These qtys are sometimes requested by the customer on ASNs. Cumulative qtys reset at year end unless you've got a customer calendar or you've modified standard SAP userexits to not reset.

Schedule agreements are very nice when the customer sends EDI data (830s = forecast or 862s = JITs). Outside of that they can really cause trouble regarding daily maintenance, missing requirements, cum qty corrections, year end processing, etc.
One alternative would be to use customer independent requirements - entering the weekly, monthly forecasting qtys and entering standard sales orders (with or without multiple schedule lines) to represent the true firm qtys.

Return material From customer

You need to receipt the rejected goods through SD Module (VA01 - Sales Order type RE).

The steps are as follows :

1. Create a return request. (Using Sales Order in SD)

2. Create outbound delivery according to return request.

3. If the setting is correct in the outbound delivery screen SAP will automatically switch post goods issue button into post goods receipt. The setting is in sales order item category and delivery type.

4. In the standard system the movement type used is 651.

5. After post goods issues receipt is done using outbound delivery, the quantity is placed in blocked stock without value updating.

6. You will then decide if the return quantity are indeed bad stock or not.

7. Transfer Posting from block stock to unrestricted stock (mvt type 453), this will have accounting effect (Debit Inventory, Credit COGS)

8. Goods Issue to scrap account how to create new titles which can be used in creating the "address" view on the Vendor master.{T-Code: XK01}
In config go to Basis Components --> basis services --> Address Management --> Maintain title texts

Taxation Explain with an example

I'm assuming that, the country is India and based on its requirement:

Sales tax is a state government revenue. There are two types of sales taxes, Local sales tax & central sales tax. Local sales tax is intra state whereas CST is inter state.

Example of LST : Point of sale i.e. delivering plant & ship to party are within the same state. The rates are defined by the respective state governments.

Example of CST : The Delivering plant & Ship to party geographic locations are 2 different states. At the point of sales from one state, the ST goes to that state govt. & consignment is despatched to the Ship to party. Once that consignment is received at the ship to party state, sales tax will be levied once the sales is registered there. For this case, the LST that is applicable by the Ship to party further will not be applicable in all probability to be captured in SAP.

Stock transfer : This does not attract any sales tax. The consignment is transferred from one D plant to another D plant irrespective of inter/intra state sales. The invoice that is accompanied with the consignment thus shall not have any final value. It's a zero value invoice, but the basic prices needed to be mentioned.

The selling organisations normally needs to register with the sales tax authority of the respective state to have a warehouse or D plant to avoid the double taxation for their dealers/distributors.

Now, the pricing procedure that is there in 4.7 is Factory sale with formula-JFACT, in which the CST condition type is JIN1 & the LST is probably JIN2. There may be surcharge cond types as well which will calculate the amount on either JIN1 or JIN2.

For config :

1.SPRO > S&D > Basic fn. > Pricing > Pricing control > Define & assign Pric. procedure > Maintain Pric proc.

2. The tax rates are normally driven from the Tax classification of Customer & Material access. To do this config, S&D >Basic fn. > Taxes. You need to include the condition type for country IN in 'Define tax determin rule'.

3. Same path : But go to Tax relevancy of master records where you configure the condition type & options of rates that will flow to these masters. One needs to understand here properly as u need to have unique combinations for picking the sales tax rates. I will try to demonstrate the smallest example. Let's say, the LST rates are 2%,4% & 0%. I will have two options for material master here. 1 for taxable & 2 for not taxable.

For customer master, I will have 1-LST 2%, 2-LST4% & 3-LST0%. When I create master records for LST thru VK11 for JIN2, I will chose the access where the combinations of customer & material tax classifications are available. If this access does not exist create it under an access sequence. But normally this is standard. The condition records will look like,
Cust-Tax classi. Material tax claasi. Rate Tax code
1 1 2% A1
2 1 4% A1
3 1 0% A1

Remember, rates are flown from the tax codes. Tax codes can be created thru T code FTXP. This is normally a FI job.

Define Tax Determination Rules

You specify the valid tax types in transaction OVK1. More than one tax type can be defined for a country by defining the sequence.

The SAP System determines the taxes automatically within pricing.

In the standard SAP R/3 System, the elements of tax calculation are predefined (for example, tax condition type "MWST" for taxes on sales and purchases).

Assign the plant for Tax Determination in OX10, using the country key, the SAP System recognizes which tax type is valid for a plant and thus which taxes are relevant when creating an SD document.

Define the Customer Taxes in OVK3, you will maintain the tax code in Customer Master.

Define the Material Taxes in OVK4, which will then be maintain in Material Master.

For example :-
MWST GST 0 Tax Exempt
MWST GST 1 Liable for Taxes

Now, you define the Tax Determination in VK12.

VK12 - Domestic Taxes/Export Taxes

Condition Type MWST

Customer Taxes Material Taxes Rate Taxes
0 0 0 %
0 1 0 %
1 0 0 %
1 1 9 %

In this example, if both the Customer Master and Material Master Tax code is 1, Tax will be included when you create the Sales Order.

Tax Code in Customer Master / Sales Order

How can we maintain the Tax Code (Tax code - which we maintain in MWST Condtion Records) in Customer Master or in Sales Order?

There are few points which I would like to remind you:

1) MWST is a tax condition which is applied to customer to whom we are selling. The rate of tax is depend on various parameteres, whether is fully liable for tax or expemted (in case of Defence Customer)

2) There are few parameteres which we apply tax condition. Whether customer is tax liable? Whether material is tax exempted?

For example, if you are selling a goods which are free for tax to any customer, put the Tax Indicator (at MMR as '0'). If your
material is tax liable pur the Tax Indicator (at MMR as 1). If your customer is not liable for tax at all (like the case of Indian
Defence organisations) put the Tax Indicator (at CMR as 0) or 1 in case fully tax liable.

3) Now, at VK11 you need to mainatain your pricning conditions with all the combinations like:

1 0
1 1
0 1
0 0

4) While maintaining your Material Master Records or Cusotmer Master Records, you must identify, which are tax liable and which are tax exempeted.

5) In anycase, as a SAP standard Best Practises, while processing a sales order, you must retrieve a Tax condition record from SAP database only and not entered Manually. Accordingly, at V/06, the MWST condition Defintions, the field for 'Manual Entries', it would be marked as - D (Not possible to process Manually).

Due to this setting, normally, you cannot maintain Condition tax code during sales order processing. And in Cusotmer Master, you can only maintain Tax Indicator and not Tax Code.

6) In case your client insists for Manual entry of Tax code during Sales Order processing, you can change the field at point 5) above to C-Manual entry is priority instead of D.

Sales and Distribution - Transfer of Requirements

he MRP department is informed about the quantities and deadlines by which incoming orders
should be delivered. The system checks the availability of the goods based on the requested
delivery date of the customer and creates MRP records which contain all necessary information
for passing on to planning. It ensures that the goods are available in time for the delivery.
Materials planning transfers the reported requirements and creates orders or purchase
requisitions from them etc.

For controlling transfer of requirements, you have to carry out the following steps:

1. Each requirement type has to be allocated to one requirement class only.
2. The transfer of requirements must be switched on at requirements class level, the sales
   documents at schedule line level.
3. You must define a check group. It is possible to have this check group proposed for the
   initial creation of a material master record.
4. Note that a plant must exist for transfer of requirements to be carried out at document
   item level.

OVZG      - Requirement class

It specifies the following points:

- whether an availability check and a transfer of requirements is carried out for a
  transaction (for sales documents, fine tuning using the schedule line category is possible),
- whether the requirements are relevant for MRP,
- the allocation indicator from the sales view which controls the settlement of customer
  requirements with requirements
- whether an item is to be settled to an auxiliary account assignment,
- the settlement profile,
- the results analysis key.

(Use transaction SM30 for V_* configuration)
OVZH      - Requirements type
V_TVEPZ_V - Assignment of requirement type to Transaction
V_TVEP_V  - Schedule line category
OVZ2      - Define Checking Group
V_TMVFU   - Define the checking group that the system proposes when you create a new material
            master record. You can overwrite the default value for the checking group in the
            material master record.

Assign a Cost Center manually in a Sales Order (VBAK-KOSTL)

The Cost Center Determination settings is in OVF3 - but there are some cases where the Cost Center must be exceptionally changed.

If the document category for order type in IMG VOV8 is defined to be "I" which belong to order type FD - Deliv.Free of Charge, then the field cost center is active for input during transaction VA01.

Alternatively, you can specify an order reason and assign a cost center to an order reason.

However the standard SAP works only at the header level though, so it would not work if cost center is needed on the line item.

The cost center are assign for such business transactions as :

- Free deliveries
- Returns
- Deliveries of advertising materials

You can also make cost center allocation dependent on the order reason, for example:

Order reason: Damage in transit
Order reason: Free sample

Both the IMG settings are done in transaction OVF3, either with/without the order reason.

Define whether the Material can be used at which Sales and Distribution process

Here you define how the system responds when entering a sales and distribution document
with this material in the differenet Sales and Distribution Process Flow..

You can use the material status, for example, to prevent orders from being entered for
parts to be discontinued.

OR

To temporary block the creation of Sales Order for a certain materials.

Set the material status parameters in transaction SM30, Table Views V_TVMS.

Click Maintain and double click into the Materials Status code.

You can set three types of reponse for each Sales and Distribution process :-

1. no dialog

2. warning when entering the document

3. error message (that is, the sales and distribution document cannot be entered on
the basis of the material status)

Auto proposed all the dates when creating Sales Order

How can I make the system auto create all the Sales Order date during creation?

Each Sales Order can have different date proposal settings.

Follows this step to set the default Sales Order Type proposal date:

- Goto VOV8, double click on sales order type.

- Look and tick the fields Propose delivery date and Propose PO date.

After making the necessary IMG changes, you need to input the Delivery Plant field for each Materials that you want the system to propose the default date.

To change the Materials field Delivery Plant:

Goto MM02, Select the View Sales: Sales Org. Data 1 and fill in the Delivery Plant.

Default First Date is not Today

When end user created a new sales order with VA01, default First Date wasn't today, why?

Note:
1. Before today, default First Date was always today.
2. Nobody change system configuration.

Although you mention that nobody change the system configuration, it is very unlikely that the system will mis-behaved after one day.

Usually, after checking, you will find that someone have actually change the configuration as it could not be a software bug since you have been using it for quite sometime without any problems.

The date is control by each Sales Order Type for each Sales Document type whether is it a
- OR - Standard Order,
- RE - Returns etc.

Verify the Sales order type configuration with the following path:

IMG: Sales and Distribution --> Sales --> Sales Docs --> Sales Doc Hdr --> Define Sales Doc Types (transaction vov8) will let you control this by sales document type.

There is one field (Lead time in days) which "specify the number of days after the current date that the proposal for the requested delivery date in the sales document should be".

This should be blank if you want the system to propose current day for delivery date.

Duplicate customer purchase order

If you are facing a problem with duplicate customer purchase order as your company does not allowed a same customer purchase order with the same sales order type.

You can activated the check for duplicate purchase order with "VOV8".

In the General Control Section, look for the field Check Purchase Order No and put in "A".