Step 1: Define Sales Organization

Step 2: Define Distribution Channel

Step 3: Define Plant

Step 4: Maintain FI Master Data For The Customer

As above mentioned, this is a new customer, so we should maintain the FI master data for
the business.

a. Define company

Path: SPRO-Enterprise Structure-Financial Accounting

Company 'ZJC1'

b. Edit, Copy, Delete, Check Company Code

Path: SPRO-Enterprise Structure-Financial Accounting

Company Code 'ZJC1'

Do not forget to assign the Chart of Account, Fiscal Year, Field Status Variant (and ETC.) to
the company code.

c. Reconciliation Account

Transaction Code: FS00

We should create a new reconciliation account for the customer under the company code.

In my test, the reconciliation account is '100100'. As a customer reconciliation account, the

'Recon. Account for Acct Type' field should select 'Customers'.

Step 5: Link The Objects

The assignments can be done in the path: SPRO-Enterprise Structure-Assignment

a. Assign company code to company

b. Assign plant to company code

c. Assign sales organization to company code

d. Assign distribution channel to sales organization

e. Assign division to sales organization

The existing divisions can be reused or a new division can be created, this is based on
different requirements, in this blog post, I will reuse the existing divisions.

f. Assign sales organization - distribution channel - plant

Step 6: Maintain Customer Data

There is no separate transaction code (TCODE) to maintain customer and vendor data in the
S/4 HANA system, the things have been moved to Business Partner (BP). We should create
a new Business Partner with Customer roles (FLCU00, FLCU01) for this customer.

TCODE: BP

BP configuration and data maintenance is a big topic, I will introduce it in another blog post.

The simple steps:

a. Create a new Organization

b. Select Customer role FLCU01 from the role list.

Select the 'Sales and Distribution' button from the top-right screen.

Maintain the 'Sales Organization', 'Distribution Channel', 'Division' data in the popped
screen.

In my test, it looks like the screenshot below.

We can maintain the data in the tabs based on the requirements. After the customer is
created, we should come back to this screen and check the 'Partner Functions' tab, we will
need to use the customer number which maintained in this tab to create a sales order.

For example, customer number 3639 (this is different from the BP number) will be used in
our test later:

c. Select FI Customer role FLCU00 from the role list.

Select the 'Company Code' button from the top-right screen.

Using the company code which we created in step 4.b in the poped screen.

Using the reconciliation account which we create in step 4.c.

Step 7: Maintain Material Master

Transaction Code: MM01

a. Select Industry Sector and Material type

b. Select the views

View 'Accounting 1' should also be selected.

c. Input the organization level data, using the data which we created in the previous steps.

d. Maintain basic data in the tab 'Basic Data 1'.

Business Unit of Measure: BAG

Weight information:

e. Maintain tax data in the tab 'Sales: sales org. 1'

f. Maintain price information in the tab 'Accounting 1'.

This is just an example.

After we click the 'Save' button, the system may ask us to maintain the values of other fields,
this is based on the existing system configurations.

Step 8: Add Stock Of The Material

As mentioned, the trading company will sell 10 bags of rice to the customer. Before we
create the sales order, we should make sure there is enough stock.

In our test, the stock of the material is 0 after it was created, so we should add the stock first.

Transaction Code: MIGO

We may be used transaction code MB1C before, but this transaction code has been
obsoleted.

We can add stock by Purchase Order or without Purchase Order. In this blog post, I will use
initial stock (movement type 561) but not Purchase Order to add the stock.

a. Receipt without PO (Purchase Order)

b. Input the material number which we created in step 7

c. Maintain quantity information

I want to add 1000 bags of rice for further use.

d. Maintain storage location information

Make sure the 'Item Ok' checkbox is selected and click the 'Post' button.

After the new material document is posted, the stock will be increased. The stock can be
checked by Transaction Code MMBE.

Step 9: Maintain Item Category

Before we create the sales order, the item category is maintained correctly.

we want the goods are deliverable. This should be maintained in the item category.

Transaction Code: VOV7

I will use the item category 'TAQ' in the test, so I double-checked the item category.

Step 10: Create Sales Order

After the preparations, we can create a sales order based on the created data.

Transaction Code: VA01

a. Create a standard order (Order Type 'OR')

b. Using the customer number which we created in step 6 as 'Sold-To Party' and 'Ship-To
Party'

c. Maintain the 'Sales' tab

Select the payment term 0002 (pay in 14 days get a 2% discount).

Deliver Plant: ZJC1 (previously maintained)

Using the material which we created in step 7 on the list, maintain the 'Order Quantity' and
'ItCa' (value 'TAQ') and 'Amount' fields for the material.
d. Maintain the 'Shipping' tab

Step 11: Deliver the goods

After we create the sales order, the next step is to deliver the goods (if the item category is
deliverable).

Transaction Code: VL01N

The warning message below may appear.

To fix this issue, we should come back to generate the schedule line for the sales order.

Transaction Code: VA02

Input the 'Confirm Quantity' value and save the change.

After that, come back to VL01N and reprocess the sales order. Check the fields and save
the change, after that the outbound delivery document will be created.

Before we can bill the sales order, we should make sure the goods are delivered/picked.

Transaction Code: VL02N

In this blog post, I expect the customer will come to pick the goods by themselves. We
should maintain the 'Picked Qty' field under the 'Picking' tab and save the change.
The storage location should also be maintained at the same line item.

After that, we should post a good issue for this outbound delivery.

Step 12: Billing The Sales Order

After the sales order is created and the goods are delivered/picked, we can create the
invoice for this sale, this is a very important step to link the sale with Financial function.

Transaction Code: VF01

The delivery document number which we just maintained will auto appear on the list. Select
'F1 Invoice' as the 'Billing Type' and today as the 'Billing Date' and click the 'Execute' button.

If there is nothing wrong, then the screen below will appear. Check the data and click the
'Save' button.

Step 13: Release Billing Document to FI Accounting

The document generated at step 12 will not default release to FI accounting. We should
manually release it to accounting.

Transaction Code: VF02

Click the 'Release to Accounting' button at the top-right screen.

After the document is released to FI accounting, we can check the FI invoice information by
the 'Display Document Flow' button in VF02.

The FI invoice information can be found from the screenshot below. This invoice is not
cleared.
We may face the 'account cannot be determined' issue when we release the document to FI
accounting, this is because of the GL accounts (revenue, sales deductions, etc.) were not
maintained in transaction code VKOA. The system cannot determine which GL account
should be used to record the revenue and sales deductions and other values. We should
check which chart of account we are using for the company code (assign to the BP FI
customer role FLCU00) and find out which GL account under the chart of account should be
used for the purposes and maintained them in transaction code VKOA (select 'V' for the
'Application' field, as 'V' standards for 'Sales/Distribution' at here). I will not introduce more
on this part in this blog post because GL account configuration is quite dependent on
business requirements.

Step 14: Check the Invoice

Finally, the invoice is generated. Let's take a look at it.

Transaction Code: FB03

G/L Account 100100 is the reconciliation account which we maintained for the Business
Partner 'FI Customer' role FLUC00.

GL Account 800000 is the account which I maintained in transaction code VKOA for
recording the sales revenues.

The invoice is not cleared, we can find the related open item from transaction
code FBL5N under the customer number which generated in transaction code BP.
Step 15: Process Incoming Payment

The last step in our test is to clear the open invoice by manually processing the incoming
payment.

Transaction Code: F-28

Before we can run the payment, we should make sure the bank related configurations have
been done in the system. This configuration is out of the scope of this blog post.

An example:
Click the 'Post' button after we input the data.

Input the 'Amount' value and click the 'Post' button.

A new document is created to clear the invoice.

If we check the sales order billing document again, we will see the invoice status changed to
'Cleared'.