Company code: Z001  I took it as a reference.

Create new sales organization:

Using the distribution channel and division as 01 and 01.

Sales org: Z003

Distribution channel: 01

Division: 01
Define plant:

Plant: Z003

Define SLOC & maintain the address of the SLOC:

SLOC: SL03

Define and maintain the address of shipping point:

SP: ZS01

Define Loading point under the shipping point:

Assignment:

Logistics general:

Assign plant to cocd:

Assign business area to plant + division:

Assign valuation area with business area:

Sales & distribution:

Assign Sales organization to cocd:

Assign distribution channel to sales organization:

Ledger

Assign division to sales organization:

Set up sales area:

Assign sales organization, distribution channel, division to plant:

Rules for setting up business area:

Material Management:

Assign purchase organization to cocd:

Purchase organization: Z001

Assign purchase organization to plant:

Logistics execution:

Assign shipping point to plant:

Shipping point: ZS01

Plant: Z003
Sales & distribution master data:

Common distribution channel:

Common division:

Assign permitted order types to sales area: Transaction: OVAO, OVAM, OVAN, and OVAZ.

Define reference sales organization, reference distribution channel, reference division.

We always have to put reference sales org, dist channel, division as the same as the name given.

OVAZ:
Define pricing procedure:

Customer: 200000007.

Sold to, ship to, bill to, payer: 200000007.

Roles:

FLCU00: General data + Company code data.

FLCU01: General data + Sales area data.

Table BUT000: Customer master general data.

Assign shipping point:

SLOC based shipping point determination:

Conclusion:

Sales Order: 59/10 has been created.

Customer master  Transportation zone: west.

Departure zone from route  0000000001

Destination zone from customer master: 0000000002

Now configuration of route:

Transportation connection point:

Define mode of transport: Z1  Truck

Define shipping types:

Transportation connection point:

Create route and maintain its stages:

Route determination:

Define transportation zones:

For IN, there are 2 transportation zones.

1. For east region.

2. For west region.

Maintain country and transportation zones for shipping point:

Define transportation groups:

Comes from material master data. Here it’s set as 0001 (On pallet).

At delivery level route determination, we can add weight groups.

1. Maintain weight groups.

2. Maintain details of weight groups.

Maintain route determination:

1. Order level: without weight group.

2. Delivery level: With weight group if maintained.
 1. Country of departure.
2. Country of destination.
3. Departure zone (From shipping point).
4. Receiving zone (From customer master).
5. Transportation group.
6. Shipping conditions.

Activate route schedules:

1. Order type
2. Delivery type
3. Route

If we want to activate the route schedules, then mark the check-box in route schedule in configuration.

If the delivery is without any preceding document, then the route schedule determines nearest possible
path or route.

Route for shipping notifications or ID:

1. Service agent
2. Vendor
3. Plant

After putting all the configurations, route is determined automatically in sales order.
Output determination for sales order:

Activate output type BA00  Order confirmation.

Output determination procedure: Z10000

Copy it from the standard one V10000.

Now therefore output type BA00 will also be enlisted.

Assign the output determination procedure with order header (Order type).
Maintain condition record:

Transaction: VV11.

Logistics execution:

Create delivery type: OVLK

Create item category for the delivery: OVLP

Here we will use TAN as it will be copied to delivery from sales order.

Set the item category determination:

Delivery type + Item category group + higher level item category + Usage.

Set up all the possible combinations.

Delivery: 80000012

Configuration of valuation grouping code: OMWD

Activate material ledger: OMX1/2/3

To create the material master first define the MRP controller in configuration:
Sales order: 60

Delivery: 80000014

Configuration for transportation:

1. Define transportation relevance.

A. For delivery type, delivery item category and route.
B. Define shipment type: Z001
C. Define activity profile using standard program RV56ABST (To do the goods issue/generation
of billing document/triggering any output type).
D.

Determine the GL account:

Transaction: VKOA
Warehouse Management:

Define warehouse number:

Warehouse number: Z04

Assign warehouse number to plant and SLOC combination:

Maintain the number ranges:

Define number ranges properly.

Maintain the storage type and assign with warehouse number:
Define storage sections:
Define picking areas:

Define doors:

Define material staging area:

Define storage bin type:

Define blocking reasons:

Define storage bin structures:

Define storage type structures:

Define storage unit types:

Define storage section indicators:

Define requirement type:

Define warehouse number and movement type combination:

Define storage bin: LS01N
So output type for auto picking (EK00) will not be triggered here.
And the user needs to create a Transfer requirement and Transfer order to do the picking activity.

Create a new storage bin with the delivery number as it will act as destination bin.
TO 20000000 has been created.

Confirm the TO.

TO item has been confirmed.
Once confirmed, picking will be done automatically.
Do the PGI.

Since it’s a fixed bin storage, so we have created the destination storage bin manually.
Document Flow:

Availability check and transfer of requirements:

Define requirement class:

Copy from 030 (Sales from stock).

Define requirement type:

Requirement type: ZKSL + Requirement class: Z30.

Assignment of requirement type with transaction:

Item category + MRP type

Availability check, TOR and product allocation activate at schedule line level:

Availability check with ATP logic.

1. Check in group: Z2:

2. Combination of check in group for availability check and check in rule decide the procedure of
availability check.
3. Determine procedure for each delivery item category:

4. Define check-in rule for updating back orders.

5. Fixed date and quantity check based on the sales area:

 6.

Availability check against product allocation.

Rule based availability check.

Handling Unit Management:

Basics:

Define number ranges for HU’s:

Define packaging material types:

It’s the material which is linked to the material master record. Basically packaging material is a material
which is basically used to pack the shipping material.

Like Container, Carton, Pallet etc.

Define material group for packaging material:

Combine material group for packaging material and packaging material type:
Define profile for packing station:

Check HU Managed in SLOC:

For making a SLOC HU managed, partner SLOC must be specified.

Warehouse Management:

Storage type definition:

Define shipping control as per warehouse number:
Packaging material: 54
Third party sales:

Third party item category determination:

Schedule line category determination:

Create purchase organization:

Purchase organization Z001 is created.

Assign purchase organization to company code:

Assign purchase organization to plant:

Create Purchase group:

Determine purchase area:

Purchase organization + Purchase group + Purchase area.

Create vendor account group:

Account group: KRED.

Vendor master data:

100038 (Business Partner: 89).

Material Master Record:

Material Master: 56 has been created.

While creating sales order for this material a Purchase Requisition will be created in back ground.

During creation of sales order Purchase requisition 10000094 will be created in back ground.

Now manually convert the requisition to purchase order 4500000109.

Since the account assignment category X (Third party) is used over here, so manually goods receipt is
possible.
Do the goods receipt using MIGO_GR.

Material document for goods receipt: 5000000055.

GR is posted to consumption account and consumption quantity gets updated.

GR/IR clearing account for external procurement is updated with order value.
MIRO for vendor invoice:

Accounting document:

Enter the end customer invoice:

Sales Dom Base Sale gets credited with sales order value.

Customer account gets debited.

If anyone changes the PO quantity, the same will not be reflected in sales order.

So to check this, standard report SDMFSTRP is used.

Screenshot:
Material requirement planning (MRP):

Configuration:

Transaction: OPPR

Maintain MRP group:

Intercompany sales:

Material: ALUMINIUM_SHEET

Sales organization: Z004/01/01.

Sales organization: 0001/01/01.

Configuration steps:

1. Material should be extended in both the plants, sales organization, distribution channel, division.
2. Assign sales organization, distribution channel vice versa.

3. SPRO  SD  Billing  Intercompany billing  Assign order types with intercompany billing.

Or < IV.

4. Assign organization units by plant:

5. Assign internal customer for both the plants:

6. Create and assign the pricing procedure determination.

7. Maintain pricing condition record in VK11.

Maintain condition record for PR00 as 140 INR/EA:

Maintain condition record for PI01 135 INR/EA:

Go to transaction EWCF and confirm EUR as currency confirmation.

Create sales order in ordering sales organization 0001/01/01:

Put the delivering plant inside the order as Z004/SL04.

Sales order: 80/10.

Create delivery: 80000050/10.

Do the PGI.

Accounting entry:
Create end customer billing document.

Billing document: 90000025

Create intercompany billing document:

Do the IV billing.

Billing document: 90000026.

Different sales and distribution scenarios:

In SAP free goods standard settings we can maintain 1 free good material against 1 main item i.e. there is
1:1 combination. We can play with material’s quantity but not with number of materials. If we get a
requirement from client that if customer buys 5 quantity of material A then he will get 1 quantity of
material B then it can be fulfill with standard free goods by maintaining it in VBN1. But if customer will
get 1 quantity of material B and 1 quantity of material C on buying 1 quantity of material A then we can
get this done by using Sales BOM.The settings for main item and sub item will be as follows. I am
assuming that you want to cumulate cost prices of sub items in main item at the time of billing. If you
don’t want this then simply don’t mark the check box in copy control from delivery to billing at item level
for cumulate cost. Also maintain BOM for master data in CS01 with usage 5.

1. 3 material codes need to be defined first.

2. Main material: COMPUTER, Components: MOUSE, KEYBOARD.

Exclusive Free goods:

Sales order: 81/10.

Delivery: 80000052.

Material BOM:

1. Go to transaction CS01.
2. Create the sub-items with reference to main item.
Sales order: 82/10.

Main material: COMPUTER

Sub material: MOUSE, KEYBOARD.

Sales order BOM:

Sales order: 83/10.

Run MRP in MD02.

Check the stock requirement list in MD04.

For MTS scenario, the MRP run will not work, since the stock is supposed to be dispatched from stock
directly.

MTO + BOM scenario:

1. Create a material TCOMPUTER with general item categroy group as 0005.

2. Sales Order: 86/10 and there put the requirement type as KE.

New material: TESTCOMPUTER (General item category group: ERLA and strategy group: 10 [Make to
Order]).

TESTMOUSECOPY (General item category group: ERLA and strategy group: 20 [MTO scenario]).

Create BOM for TESTCOMPUTER and assign TESTMOUSECOPY to it.

And now create the order and do the delivery and billing.

Order: 88/10

Billing document: 90000031

With strategy group: 60 (Make to order production).

Requirement type: KEVV.

-----------------------------------------------------------------------------------------------------------------------------

Pricing business scenarios:

To apply 5% freight discount to every line item of the sales order.

Apply HA00 (Header freight discount).

So go to sales order header since this condition type is assigned to pricing procedure.

It will reflect in both the items.

Item 10:

Item 20:

Sales order: 92/10.

NOTE: Like HA00 is % based discount, we can also apply RB00 for value based discount.

Same sales order: 92/10 (Tested).

To distribute the discount proportionately to all the line items based on the gross weight:

Condition type: HB00 (Absolute value based).

Based on condition based value the discount value is getting divided proportionately.

Item 10:

Item 20:
Variant pricing:

Steps:

1. Create characteristics:

Characteristcs: ZCOLOR
Values: RED, BLUE

Characteristics: ZCOLSURCHARGE
Table name: SDCOM, Table field: VKOND

2. Create class: ZMOTORCYCLE of class type 300 (Variant class).

Assign the characteristcs to the class.

3. Create a material of type KMAT (Configurable material) and assign the class ZMOTORCYCLE in
it.
Material MOTORCYCLE is created.

4. Create configuration profile in CU41.

Name of configuration profile: ZMOTORCYCLEPROF

5. Add dependency to the characteristics value of the class.

6. Create sales order 93/10 and check whether the variant value is populating in the sales order or
not.
Item 10:

Item 20:
Sales order: 94/10 contains one more character i.e: CC.

And accordingly price is fetched up.

Sales Order Costing:

Links:

http://scn.sap.com/docs/DOC-49167

Transaction: CK13N  Display the costing of a material.

Material master costing 1 and costing 2 have the same function in sales order or material costing.

There are 6 tabs in the material cost estimate with quantity structure.

1. Costing data.
2. Dates.
3. Quantity structure.
4. Valuation.
5. History.
6. Costs.

Costing variant: OKKN.

Costing version: OKYD.

Costing lot size: Material master costing view.

Transfer control: OKKM

These searches how costing with quantity structure searches existing cost estimate when existing costing
data is transferred to another cost estimate.

Quantity structure:

It contains BOM and routing data.

Create BOM:

Create material BOM using CS01.

Create routing:

Create routing using CA01.

Valuation tab of material cost estimate with quantity structure CK13N contains:

Currency, costing sheet, overhead key etc.

Overhead cost flows from the costing sheet and overhead key.

Maintain costing overhead groups:

Overall costing run transaction: CK40N.

Transaction: OKTZ.

Cost component structure:

Maintain all the relevant GL accounts in case of OH cost/Production cost etc.

Costing variant:

Transaction code: OKKN

Costing type:

Transaction code: OKKI

Valuation variant:

Transaction code: OKK4

We can also set the plant as a valuation variant in OKK4.

Sales operation and planning (SOP):

Create plan:

Transaction: MC87

Sales, production, stock level, Target stock level, Range of coverage, Target day’s supply  Key
figures/KPI. It would be always INR (Value) or EA (Quantity).

Now once I will create a sales plan for month of December, 2017 and January, 2018, bassed on my initial
stock level, all the other period stock figures will go in negative.

This can be synchronized with production plan.

Production guys will synchronize the sales plan to the production plan.

After this the sales plan/Rough cut plan to be passed on to the regional managers/demand management
and they will pass on these requirements to MRP.
After transfer it will open the screen for planned independent requirement screen (MD61).

While saving, it will transfer the requirement to MRP.

Go to transaction MD63.
Go to transaction MD04 to see how the stock is getting consumed over here.

Run MRP using MD02.

It generates the planned order to produce the raw material/FP as per the master data.

Go to MD04 and convert the planned order to purchase requisition.

Convert the requisition to purchase order.
Long term planning (LTP):

Finished Material: AL_SHEET_1, AL_SHEET_2.

Raw Material: AL_SHEET_R1, AL_SHEET_R2.

Steps:

1. Create a product group:

 Output:

Creating SOP plan for product group in active version 005.

Open transaction MC81:

Synchronize the sales plan with production plan.

Plan saved under production version 005.

Transaction: MC75: Transfer the product plan to demand management.

Open transaction: MD63

It’s divided as 2:3 ratio.

Schedule line will display the cost of each period procurement.

Create a scenario: MS31  planning scenario: 001.

Assign plant to the requirement:

Release and save the planning scenario.

Go to MS03:
After MRP run:
Go to transaction MS04:
So the system generated the planned orders to do the production for the raw materials within the same
month frame.

For capacity planning: CM38

First go to customizing transaction: OPU5

Pass on the requirement to purchase:

MS70
Transaction: MCEC
So outcome is: