Enterprise Wide Information Systems

Configuring SAP
Instructor: Richard W. Vawter

University of Southern California

Objectives
The primary objective of this discussion is to show how the SAP R/3 Implementation Guide (IMG) can be used to aid the project team in configuring business transactions.

For simplicity, we will keep our focus on the Order process.

Upon completion of this topic, you should be able to:

Describe the various implementation and configuration tools available in the SAP R/3 system. Anticipate how elements of the Customer Master are integrated and are used to control the SD processes. Use elements in the Material Master to streamline COM.

How to configure the Billing process for data flow and price control. University of
Southern California

Topics
The Implementation Guide
Sales Orders and the Customer Master Customizing the Material Master

Configuring the Billing Process

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Methods for Implementing & Configuring SAP

SAP R/3 includes several tools to facilitate configuring SAP and continuing support .
The R/3 Reference Model - describes the business processes included in the standard R/3 system as well as the relationship among the different application modules. The Implementation Guide (IMG) - guides users in matching their business requirements with the SAP standard software. The Procedural model - is used as a navigator to guide you through the whole implementation and configuration process.
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The Implementation Guide

A tool that leads to a step-by-step customizing of selected parts (modules) of the R/3 system.
It guides the project team in matching the business requirements with the SAP standard software. With the IMG project management functions...

Consultants in charge of implementation first decide which parts of R/3 are to be customized.

The system then automatically generates the needed hierarchical list of the customizing steps for achieving that customization.

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The Implementation Guide

Basis configuration takes place.
Global settings are set as default in the SAP system. The structure is defined to match the organizations business function. Applications are created to meet business requirements.

Financial Accounting Materials Management

Sales and Distribution Human Resources

Cross- application functions are developed.

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The Enterprise IMG

The Enterprise IMG is just a subset of the Reference IMG.
It is where all the customizing takes place.
SAP Reference IMG Enterprise IMG

FI CO PP PS

SD MM HR .

CO

Project IMG

CO

PP
MM FI

MM CO
PP
Project 001

FI
Project 002

FI
Project 002

Additional needs, e.g. upgrade

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Customizing Objects
As a rule, you will have more than one SAP system.

Development system

Test system

Production system

Changes made in the development system are transported to the test system, then to the production system.
Development system
Implementation guide Sales organization 1 2 1 2 3 1 2 3 4 Sales documents 1 1 2 Versions

Transport Request Workbench organizer

2 3 4

Test system

Sales organization

Sales documents 1 2

Customizing - How to Proceed

1. Define the organizational structures in the IMG and name the individual organizational elements.
2. Assign the organizational elements.
Define the organizational elements

Assign the organizational elements

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Topics
The Implementation Guide
Sales Orders and the Customer Master Customizing the Material Master

Configuring the Billing Process

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How Master Data is Integrated in SD Processing

Sales support
MM PP PM CC FI PS

Sales

Materials Mgmt. Production Planning Plant Maintenance Controlling Financial Accounting Project System

Master Data
Customers Materials Bills of Materials Customer-Material Info Product Proposals

MM FI

Materials Mgmt. Financial Accounting

FI CO

Financial Accounting Controlling

Data Warehouse

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Origins of Data in Sales Documents

When you create a sales order, the system proposes most of the data from the master records.
Sales order

Customer master data

Conditions

Material master data

.....

Texts

Control tables

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Business Partners (Partner Functions)

Partners - someone you have a relationship with or have to communicate with.
Functions - each partner type has specific functions.
Sold-to party ........ Ship-to party

Employee

Partner Functions

Bill-to party

Forwarding agent

Payer

Contact person

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Business Partners - Customer Master

Essential business partners for a sales transaction are the sold-to party, ship-to party, payer and bill-to party.
They are stored in the customer master.

Sold-to party

Ship-to party

Customer master
Bill-to party Payer

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Customer Master - 3 Major Data Views

Sales data - data specific to sales, e.g. sales, distribution, shipping.
Company Code data - financial accounting data.

General data - data assigned directly to a client so its available to the other two areas.
General data

FI

SD

Company code data

Sales data

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Customer Master - Account Groups

Account Group codes define what information will be needed; what fields will be required.

A payer only needs address information, etc, while a sold-to party needs an address plus delivery address, etc.
Create sold-to party
Customer Sales organization Distribution channel Division Account group : : : : : C1 0001 01 01 0001 0001

ACCOUNT GROUP 0001

Field selection Number assignment One-line account: Yes/No Output proposal

ACCOUNT GROUP
0001 0002 0003 0004 ... Sold-to party Ship-to party Payer Bill-to party

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Customer Master - Selecting Fields for Data Groups

Using field selection, you can define for each account group whether fields are optional or required. You can suppress any fields which you do not require.
Data in the customer master record General data Company code data Sales data IMG for Sales Hide
Sales group Statistics group Customer group Pricing procedure Product proposal .... Address Communication Control data Payment transactions Sales Shipping Billing Partner usage Output

Required

Optional

Display

Customer Master - Selecting Fields for Data Groups

Account groups are already set up in the R/3 system

Sold-to party

Ship-to party

Payer

Bill-to party

Specific fields are selected for each of these account groups The selection of fields depends on the functionality of the partner function needed.
Account group 0001 Sold-to party Account group 0002 Ship-to party Account group 0003 Payer Account group 0004 Bill-to party

Sales
Shipping Billing Partner usage Documents

Sales 1
Shipping Billing 2 ----Documents

Sales 1
----Billing ----Documents
2. Tax information

Sales 1
------------Documents

1. Controlling for authorization

Customer Master - Combination Rules in Field

The combination rule with the highest priority determines the respective field status.
Transaction fields marked as: Account group marked as:

Suppress Suppress Display Required Optional Suppress Suppress Suppress Suppress

Display Suppress Display Display Display

Required Suppress Display Required Required

Optional Suppress Display Required Optional 1st priority 2nd priority 3rd priority 4th priority

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Customer Hierarchies
Create hierarchies to reflect the structure of the customer organization. Use customer hierarchies during sales order processing and billing for determining pricing.
ACME Co ACME Co

Central
4711

Unique node number

ACME Co

North
4713 ACME Co Northwest 4714
Customer 2743 Customer 2744

South
4712 ACME Co Northeast 4715
Customer 2742

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Topics
The Implementation Guide
Sales Orders and the Customer Master Customizing the Material Master

Configuring the Billing Process

University of Southern California

Materials - Material Types

The material type is part of the general data on a material. The departments responsible for a material type determine which views must be maintained for a specific material.

A
Material

Quantity/Value update Price control

Variance for each plant

Matl. type

Description Department Internal/External POs

Account assignment

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Selecting Fields for Materials - Influencing Factors

An individual control table is available for each influencing factor shown here and corresponds to a group of fields in the material master.
Transaction Procurement indicator Material type Field selection Plant Industry sector SAP components
Sales & Distribution Financial Accounting

..

Materials Mgmt.

Controlling

Production Planning

R/3
Quality Mgmt. Plant Maintenance

Fixed Assets Mgmt.

Client / Server ABAP/4

Workflow

Project System

Human Resources

Industry Solutions

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Materials - Material Status

You can define different kinds of material status and for each status, how the system will react when an item is created in a sales document.

Material Status Discontinued part Technical defect . . .

Quotation Error Error

Standard Order Warning Error

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Product Hierarchies
Product hierarchies are used for pricing and analysis. In the Standard SAP setup, they can be defined with up to 18 characters and three levels.
Level

00001 Tools

0000100001 Electrical appliances

0000100002 Compressors

000010000100000001 Electric screwdrivers

000010000100000002 Electric drills

000010000200000001 Electric drills

000010000200000002 Electric drills

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Customer-Material Information
You can define customer-specific data for a material in a customer-material information record. This may incl:

cust.-specific matl. #

cust.-specific matl. description

etc.

Customer-Material Information
Sales organization : 1000 Distribution channel : 01 Customer : C1 Customer-specific data Material Description M234 Computer 550C M598 Computer 1650B . . . .

Material M1 M2 . .

Description Computer AG Computer UG . .

Sales order
Sold-to Party: C1 Customer Matl M234 M598 Description Computer 550C Computer 1650B Qty 10 3

Proposing Items Using Product Proposal

Material combinations which you use frequently can be stored in product proposals.
Product proposal Validity period Search term
Item 10 20 30

: 5000002 : 01/01-12/31 : SD product proposals

Qty. 40 50 30

Material M1 M2 M3

Material or material + quantities

Sales Order
Sold-to party: C1

Item 10 20 30

Material M1 M2 M3

Qty. 40 50 30

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Bill of Materials - An Example

By making the appropriate settings in Customizing, you can copy the components in the bill of material to a sales order as one item.

Computer

Mouse

Monitor

CPU

Keyboard

Screen

Casing

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Bill of Material - Bill of Material Categories

The bill of material category serves as a link to different objects. You can create bills of material only for objects existing in the material master.
Material master record

Material BOM

A
Material Equipment master record

Equipment BOM

Document master record

Sales order

Document BOM

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Bill of Material - Where They Are Used

Item status controls how BOM items are processed in related application areas:

Production (operations) Construction (technical data) Pricing Sales & distribution (order quantity) Plant maintenance (maintenance information)

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Topics
The Implementation Guide
Sales Orders and the Customer Master Customizing the Material Master

Configuring the Billing Process

University of Southern California

Billing Types
The billing type controls the entire billing document. Billing types are dictated by the type of the reference document.
Invoice Pro forma invoice Cash sale

Invoice list

Billing Types

Credit/debit memo

Cancellations Inter-company billing

Returns

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The Billing Process

Each billing document requires a reference document.
Order Document Types
Inquiry
Type: IN

Delivery Doc.

Billing Documents

Quotation
Type: QT

Standard Order
Type: OR Header Item: TAN Schd. line Type: LF Header Item: TAN Type: F2 Header Schd. line

Returns
Type: RE Header Item: REN Type: LR Type: RE

Cash Sales
Type: BV

Immediate

Type: LR

Credit
Type: CR Type: RE

Billing Documents
You can reference either an order or a delivery document when creating an invoice. This is configured in the IMG by the item category.

Std. Order

Delivery

Invoice

or
Std. Order
Delivery Invoice

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Credit / Debit Memos

However, with credit / debit memos, you can only reference the credit / debit requests (sales documents).
Order Delivery Invoice

Credit request

Credit memo

or
Debit request Debit memo

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Returns
Credit memos are created with reference to the returns (sales documents) and NOT to the returns delivery.
Sales Order Delivery Invoice

or
Credit request Returns delivery Credit memo

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Data Flow
You can influence the data flow from reference documents to billing documents by:

Billing types

Copying control for header

Copying control for items

For example - payer - item number - prices - texts

Order

Delivery

Invoice

Doc. flow Data flow

For example - ship-to party - quantity - texts

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Copy Control
As just mentioned, how data is transferred in the billing process can be influenced by the copy control data.
Target Billing type Source Delivery type

Header

F2
Target

LF
Source Source

Billing type

Delivery type

Item category

Item

F2

LF

TAN
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Billing Quantities
Delivery and order quantities are referenced in billing. You can create a billing document with reference to an order for quantities already delivered.
Billing
With reference to an order With reference to a sales document (e.g., credit memo) With reference to a delivery (e.g., billing doc. Types F1 and F2) Pro forma invoice F5 Pro forma invoice F8

Billing Quantity
Delivery quantity minus quantity already invoiced Order quantity minus quantity already invoiced Delivery quantity minus quantity already invoiced Order quantity Delivery quantity

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Pricing in Billing Documents

You can specify a pricing type for each billing document type and item category.
Price: Material M1
from 1.pc 10.pc 20.pc 10.00 9.50 9.00

Price: Material M1
from 1.pc 10.pc 20.pc 11.00 10.50 10.00

Discount
from 50.00 100.00 1%2%-

January

March Invoice A
M1 10 pc 10 x 9.50 Manual discount 10 pc

Order
M1 20 pc 20 x 9.00 Manual discount M1

Delivery

Invoice
M1 10 x 10.50 Discount 2 %

B
10 pc

Pricing type:
A Price components are copied and updated (scale redetermined). B Pricing is carried out again. C Manual price components are copied, pricing carried out for all other components. D Price components are copied as is from the reference document.

Invoice

M1 10 pc 10 x 10.50 Discount 2 % & manual

Invoice

M1 10 pc 10 x 9.00 Manual discount

Key Points (1)

The Implementation Guide (IMG) enables the project team to match the business requirements with the SAP standard software and customize the transactions to the needs of the organization.

You can minimize the time an effort needed to create sales documents by thoroughly maintaining the customer master and defining all types of business partners. The account group allows you to select data fields for maintaining the master data.
By classifying materials by material types, you can specify which views for a material are to be maintained.
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Key Points (2)

When maintaining material master records, you can specify (in the IMG) which fields are to appear, to be required or optional, or are to be blocked. You can store customer-specific information on individual materials (e.g. customer material numbers and descriptions) in customer-material information records. This enables you to create orders using material numbers specified by the ordering party.

When you frequently sell combination of materials, you can simplify sales order creation by creating product proposals.
You can also create BOMs to combine several materials for use in SD.
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Key Points (3)

Billing documents always reference a previous document. Reference documents will dictate the billing document type.

The flow of data is controlled:

by the programs by billing types by copying control tables

You can determine copying control at:

the header level the item level University of Southern California