SAP Sales and Distribution Processing Document Flow

Document Flow in Sales

The sales documents you create are individual documents but they can
also form part of a chain of inter-related documents. For example, you
may record a customer’s telephone inquiry in the system. The
customer next requests a quotation, which you then create by
referring to the inquiry. The customer later places an order on the
basis of the quotation and you create a sales order with reference to
the quotation. You ship the goods and bill the customer. After delivery
of the goods, the customer claims credit for some damaged goods and
you create a free-of-charge delivery with reference to the sales order.
The entire chain of documents – the inquiry, the quotation, the sales
order, the delivery, the invoice, and the subsequent delivery free of
charge – creates a document flow or history. The flow of data from one
document into another reduces manual activity and makes problem
resolution easier. Inquiry and quotation management in the Sales
Information System help you to plan and control your sales.
The following graphic shows how the various types of sales documents
are inter-related and how data subsequently flows into shipping and
billing documents.

Screens in the Sales Documents

Sales Order
Each sales order item can have multiple deliveries at different date.
Multiple deliveries for each sales item is specify in the Schedule line of
the Sales Order.
When the Sales order was created (VA01) the system automatically
proposes data from the relevant master records:
• From the customer master record (VD03) of the sold-to
party, the system proposes sales, shipping, pricing, and billing
data. In addition, the system copies customer-specific master
data about texts, partners, and contact people at the customer
site.
 • For each material in the sales order, the system automatically
proposes data from the relevant material master records (MM03
- Sales view), such as data for pricing, delivery plant,
availability check, tax determination, and weight and volume
determination.

VD53 - Customer-material info record. When you create the

sales order item, the customer material number will be copy into
the item Customer Material. In the Sales order, click Item ->
Purchase Order data.

Sales Document Type

Sales document can have many different document types. Each

document type has its own usage...
Some commonly used document types are:-
• OR - Standard Order
• RE - Returns
• FD - Delivery Free of Charge
Different Sales Document types have different control parameters.
For e.g. Document type ZOWN:-
General control :-
Check Division -
Blank -> no checks
1 -> Dialog to inform user that the division is different from
material master
2 -> Error when division is different from material master
Shipping
Immediate Delivery
Blank -> Create delivery separately
1 -> Create delivery immediately when sales order is save
2 -> Create delivery if quantity can be confirmed to day
Maintain Sales Document Type
• Transaction VOV8 - Double click on the document type to check
the configuration.
Some configurations you can specify:-
• Check credit limit
• Define the default Delivery type
• Define the default Billing type
• Block the Document Type from being used etc.
 New Division/Sales Area/Sales Office

4.6x
OVXA - Assign division to sales organization
OVXG - Set up sales area
OVXM - Assign sales office to sales area
e.g. Sales Organization -> Distribution Channel -> Division

-> Sales Office

VOR2 - Define Common Divisions
OVAN - Combine divisions allows you to share sales document type
data between different divisions. You define the sales document types
in a central division and then use it as a reference division.
For e.g.
Sales Organization Division Reference division
ALL 01 01
ALL 02 01
ALL 03 01
OVKK - Define Pricing Procedure Determination
for e.g.
Sales Organization Distribution Channel Division Document
Procedure Pricing Procedure
ALL 01 01
A 1
SM30 Table/View :
V_TSPA - Define New Division
V_T134G_WS - Assign Business Area To Plant
V_TVTA_GRE - Define Rules By Sales Area
V_TVTA_KFV - Assign business area by sales area
V_TVAKZ - Assign sales order types permitted for sales areas

Define Account Assignment Group

Field found in Material Master Sales Organization 2.

To define the General Leger posting:-
IMG -> Sales and Distribution -> Account Assignment/Costing
-> Revenue Account Determination
-> Assign G/L Accounts
With this link, the material that used this account assignment group
will be posted with the desired G/L accounts during Billing.
User will not be able to Release the billing document to Accounting if
this is not setup.
If you happened to assign it via Cust.Grp/MaterialGrp/AcctKey,
then you can let your user use this report to check the material
assignment.
* Transaction code VKOA
REPORT ZMATNR_AC_ASSIGN LINE-SIZE 132 NO STANDARD PAGE
HEADING
LINE-COUNT 044(001).
TABLES: MARA,
MVKE, "Sales Data for Material
C001. "Cust.Grp/MaterialGrp/AcctKey
SELECT-OPTIONS: S_MTART FOR MARA-MTART DEFAULT 'DIEN',
S_MATNR FOR MARA-MATNR,
S_VKORG FOR MVKE-VKORG DEFAULT 'ALL'.
SELECT * FROM MARA WHERE MTART IN S_MTART
AND MATNR IN S_MATNR.
CLEAR MVKE.
SELECT SINGLE * FROM MVKE WHERE MATNR = MARA-MATNR
AND VKORG IN S_VKORG.
CLEAR C001.
SELECT SINGLE * FROM C001 WHERE KTGRM = MVKE-KTGRM.
WRITE:/ MVKE-MATNR UNDER 'Material',
C001-KTGRD UNDER 'Cust Grp',
MVKE-KTGRM UNDER 'Matl Grp',
C001-KVSL1 UNDER 'Acct Key',
C001-SAKN1 UNDER 'G/L From',
C001-SAKN2 UNDER 'G/L To '.
ENDSELECT.
TOP-OF-PAGE.
FORMAT COLOR COL_TOTAL.
WRITE: / SY-DATUM, SY-UZEIT, SY-REPID,
050 'Material Sales Account Assignment',
120 SY-UNAME, SY-PAGNO.
SKIP.
WRITE: /001 'Material',
020 'Cust Grp',
030 'Matl Grp',
040 'Acct Key',
050 'G/L From',
060 'G/L To '.
SKIP.

Block Sales Document Type / Delivery / Billing by Customer

When there is a temporarily stop of business with a customer, you can
block new orders to be created for this customer. You can have the
options of blocking all the work flow or let the delivery and billing to
continue for any open orders.
VD05 - Block/Unblock Customer
OVAS - Sales Order Type Blocking reasons
OVAL - Blocking reasons links with Sales Order Type
OVZ7 - Delivery Blocking reasons
OVV3 - Billing Blocking reasons
In 4.6x, if you found that your Sales Order Billing Block is not working,
it is because you need to build the Billing Block for the Billing Type.
SM30 - Table/View V_TVFSP
Block Material in Sales Order
Is there a way for me to block a material from ever being
entered in the Sales Order, if so how?
-------------------------------------------------------------------------------
----------------
If you want a material to be blocked, go to the Basic data 1 view of the
material, there in the general data you have " X-plant material status
". Also in Cost estimate 1 view of the material you have Plant Specific
Material status. Use the options available to block the material in these
two views.
You cannot use the material in sales order
Prakash.k
-------------------------------------------------------------------------------
----------------
Use the material exclusion function:
FUNCTIONALITY:
SD> Master data > Products > Listing/Exclusion> Create
( Tcodes VBO1, VB02, VB03)
Enter the list/exclusion type B001: For the required
Customer:
Enter Maintain materials > Save > Exit
Create the order and enter material excluded to test exclusion.
CONFIGURATION: IMG SETTINGS
for IMG settings; Go to IMG > SD > Basic Functions>Listing/Exclusion
Ensure that the listing/exclusion procedure is activated for your order
type. You can also create your own condition types access sequences
and procedures or use the SAP provided ones.
Kris J
-------------------------------------------------------------------------------
----------------
Additionally, another option is the sales block in the material master...
It is in one of the two sales data tabs and you are able to configure
specific blocks that allow it to be entered on credits but not on orders,
blocked from all activity, allowed for quotes only, etc. It is one setting
that becomes sales area specific and can easily be removed if you
change your mind. It also has an affectivity date that can be used.
Regina DeMita

Wrong/duplicate RE Created

• Check Document Flow for RE

Decision:-
 No Goods Issue and No Credit Memo created
 Reject the sales order item
 No Goods Issue and Credit Memo created
 Cancel Credit Memo
 Reject the sales order item
 Goods Issue and Credit Memo created
  Create another OR to offset the credit memo
created. Treat this as a normal OR process.
Ensure that account receivable is informed by
typing in the item text. Please do not send
invoice to customer as the RE is
wrongly/duplicate.
Note: When you create another OR, the delivery department
may actually go and delivery the goods to customer. Thus, it is
important to inform them that this OR is for internal
adjustment. The process of posting the goods issue must be
done by the delivery side for proper flow.

Sales Order Item price is grey

• Retrieve the sales order

• Click the sales order item
• Click Environment -> Document flow
• If there is any Billing Invoice including partial deliveries, price
cannot be changed.

Movement type determination and Availability Check

SM30 - Table View - V_TVEPZ -> Assign schedule line categories

• First check the Proposed schedule line category (SchLC) -
double click on the line item
VOV6 - Maintain the schedule line categories - double click on the line
item
• For example, you can control the default returns movement
type.
• 651 - two steps - with a transfer posting using 453
• 653 - one steps - direct post to unrestricted used
Control the Transaction Flow (tick to activate the function)
• transfer of requirement
• for availability check for sales
• production allocation active

Sales reservation

Sales reservation takes place automatically through availability check

The setting is on the checking group ( OVZ2 - Define Checking Groups
).
You must set the "Accumul." column. Without setting this it will only
check availability but not reserve it!
SAP recommend Accumul. = 3 -> Accumulate the requirements
quantity when creating and accumulate the confirmed quantity when
making changes.
For manual reservation, you can use MB21, movement type 251 -
Goods Issue for sales.
To activate the Sales Order number field, do the followings: -
Activate transaction OMBW
double click movement type 251
double click additional acct. assign.
Tick the required/optional button as per your requirement.
The user have to manage the manual reservation using MBVR.
Reserving material without sales order
In Order to reserve the specific materials for a particular customer,
use Strategy 50 to plan your MRP with the materials getting reserved
for customer when you make Ind/Collective requirement (1) in MRP4
view of Material Master
or you can create a manual reservation against that particular material
and give the customer name in the Receipent Field so that you can
easily identify the Material which belong to the Customer

Sales Order Stock

Sales Order Stock are stock with Special Stock type E. It can fall into
the usual stock categories such as unrestricted, blocked etc. but
"belongs" to a sales order. For example, you create a sales order for a
part and assign a sales item category that generates an individual
requisition, the requirement has an account assignment linking it to
the sales order schedule line, and you convert that requisition to a
Purchase Order.
When you receive the Purchase Order, the stock is placed in sales
order stock. It will show against the sales order/sales order line. It can
only be delivered against that sales order line. Any availability check
etc for that material on any other sales order will not take it into
account as it is not available except to the sales order line the stock is
assigned to.

Analyze the difference between Forecast and Confirm sales

orders

MD73 - Display Total Requirements

Enter the Material or MRP controller you want to analyze.
Assignment field options: -
1 - If you with to look at how the planned independent requirements
have been match to the sales order. Sales order which
are over and above that forecasted are not shown.
2 - If you are interested primarily in seeing what sales order are over
and above the sales forecast.
3 - If you are interested in seeing all the sales order with indication of
whether or not they have been anticipated in the forecast.
4 - If you wish to see all the three reports of the above three options
together.
- Blank if you with to see a complete list of sales order, without any
indication of whether they have been anticipated
in the forecast.
 Backorder Processing

Backorder processing is functionality in SAP where you can change the

commitments and over-ride the blockage of stocks
marked against sales documents/deliveries. For e.g. you receive an
order from a very important customer for material "A" but
the entire quantity of A is committed to another customer "B" via
earlier sales orders and this is where BACKORDER processing helps
you to change the commitment and shift stock due for B to A. This is
the benefit of this functionality.
OMIH - Checking rule for updating backorders
OPJL - Define new checking rule
OPJJ - Define scope of check
V_RA - Backorder Processing
Data selection:-
Sold-to-party Customer code Mandatory
Sales Organization Mandatory
Distribution Channel Mandatory
Division Mandatory
Changed confirmed quantity: -
Tick the material you want to change and click the Backorder button
Confirmed quantity that still can be changed are highlighted.
V.15 - Backorder List
Sales Organization Mandatory
Distribution Channel Mandatory
Division Mandatory

Third Party Order Processing

Third party order processing is as follows:

Assume three companies X, Y and Z

X - The company,
y - The customer
Z - Vendor

When ever X gets a PO from Y to supply some goods; X has an option

of either manufacturing those goods or procuring those goods.

If he is procuring the goods, there are two methods that are

generally followed:
Method 1)
After receiving the PO from Y, X creates a sales order
against Y.

Now at the same time he also creates a PO to a vendor Z to produce

the goods

Z produces the goods and supplies to X

X receives the goods from Z

Then X delivers the same goods to Y.

After that X invoices Y and Z invoices X.

Note: Here there is no direct/ indirect relation between Z and Y.

This process is known as Trading Process. And the Material here is

created with Material type HAWA.

Method 2)

Here the glaring difference is that instead of Z supplying the material

to X and X in turn supplying the same material to Y.

X authorizes Z to supply the material to Y on his behalf and notify him

once the delivery is complete.

Now Z supplies the material to Y and acknowledges the same to X.

Z will send a copy of delivery acknowledgement and invoice to X.

After receiving the delivery confirmation and invoice from Z, X has to

verify the invoice and this process is known as invoice verification
and is done in SAP through Tcode MIRO.

The next step for X is to create an invoice and submit to Y

Only after the invoice verification document is posted then only X can
create an invoice for Y.

This is the business flow that is followed for third party order
configuration.

There are few steps that have to be configured to enable the system to
function as mentioned above.
Step1)

If you are always following a third party process for a material then
you have to create the material using item category group BANS.

The procument type should be marked as External procurement (F)

in MRP 2 view of the material master record.

if you are not always allowing third party order processing then u can
create a material master record with item category group as NORM
and the procurement type should be marked as ( X) meaning
both types of procurement ( in house manufacturing and external
procurement).

Step 2)

The item category in the order should be manually changed as TAS.

For that you need to configure the item category determination

ord type + item cat grp + usge + Hiv level = Item cat + Manual item
cat
OR + NORM + + = TAN. + TAS
OR + BANS + + = TAS

Step 3)

Make sure that during the item category configuration for TAS you
need to mark relevant for billing indicator as F

Step 4)

The schedule line category for this type should be CS.

Make sure that you mark subsequent type as NB - purchase

requisition in this schedule line category as this will trigger the
purchase requisition order immediately after the creation of the sales
order and the PO to vendor is created against this purchase
requisition.