Topic List

Unit 11: Cash Sales, Rush Orders & Consignments

Unit 12: Intercompany Sales, Stock Transfer Order & Third Party Sales

Unit 13: Complaints Processing

Unit 14: Scheduling Agreements and Contracts

Unit 16: Incompletion Log

Unit 17: Copying Control

Material Listing
Sub Topic
Suppose we want to make sure that our
customer receives only specific materials, we
can enter these materials as a material
Material records for
listing. Order
Material listing
The material listing is controlled by the
condition technique, to be studied in later
units.
Sold To Party : C100
In the above example, we have created
master records with a key for the customer
and material numbers. Item Material
Customer: C100
This key is delivered in the standard system. 10 M1
Materials :
We define in the sales document type 20
M1
whether the system checks the material 30
listing or not. M2

=.
Material Exclusion

* Suppose we want to ensure that the customer does not receive certain materials, we enter these materials as a
material exclusion.
* The material exclusion is also controlled with the condition technique.

Material records for Order

Material Exclusion

Sold To Party : C200

Customer: C200 Item Material

Materials : 10 Mi
M3 20 ms
M4 =

=
 Topic List
Unit 11: Cash Sales, Rush Orders & Consignments

Unit 12: Intercompany Sales, Stock Transfer Order & Third Party Sales

Unit 13: Complaints Processing

Unit 14: Scheduling Agreements and Contracts

Unit 15: Material Listing and Exclusion

Unit 17: Copying Control

Waiting for powerpoint.officeapps.live.com...

Introduction

* An incompletion log defines how the system should respond when a sales document is incomplete.
* In other words, it guides the system behavior in the event that some of the necessary fields are not filled up.
* Typical choices include forcing the user to enter the data and not let the user save the order before all the necessary
fields are filled.
* Incompletion procedure can be assigned to not just the sales order header level, but also line item level, schedule
line level, delivery header and delivery line items.
* However, Incompletion log cannot be set for billing documents.
Configuring Incompletion Log
Incompletion log has basically 3 steps
Step 1: Define Incompleteness Procedure:
SPRO -> IMG -> Sales and Distribution -> Basic Functions -> Log of Incompletion Items -> Define Incompletion
Procedures
In this step, you define the incompleteness procedure that should apply to the various incompleteness objects.
In an incompleteness procedure you group together the fields that are to be checked for completeness.
If you have not entered data in one of the fields in the document, the document is incomplete.
Depending on the status group you can block certain subsequent activities for the document.
For every field in the procedure you also have to define whether a warning message should be issued during
processing if no data is entered in this field.
This function does not exist in delivery processing.
Configuring Incompletion Log (2)

Step 2: Assign Incompleteness Procedure:

* SPRO -> IMG -> Sales and Distribution -> Basic Functions -> Log of Incompletion Items -> Define Incompletion
Procedures
* Inthis step, you assign procedures to the different incompleteness objects.

Step 3: Define Status Groups

In this IMG activity, you use status groups to define the status of incomplete sales and distribution documents.
* Then assign the status group to the fields in an incompleteness procedure.
In the status group, you define which functions may be carried out for an incomplete sales and distribution
document or for the items where a field entry is missing.
You use this function to block a document for delivery, billing, or pricing.
In addition, you can check at header level whether the general data is complete

=
Define Incompletion Procedures
oC

Table View Edit Goto Selection Utilities(M) System Help

@ » ~H\/€6@ 0855/8055 fA ee
Display View “Groups”: Overview

Structure
Sf Groups _ incompletion groups.“
? (Procedures
O Fields Group Description
Ai Sales - Header

>)
jB Sales - Item
Ic Sales - Sched. Line

Lis
| Partner
IF Sales Activity
\c Delivery header
IH Delivery item
Define Incompletion Procedures (2)

&
Table View Edit Goto Selection Utilities(M) System Help
G 218 668 BHR H04a9 AH OB
Display View “Fields”: Overview
ee)
[eto
Stucture Nagar oro, (11
f~ CGroups Incqmpletion fields i
¥ OProcedures i
AFields ly able Fid name Description Scr |Status {Warning [Seq

1+ ES)
BAK AUDAT Document Date KKAU 1 0 0
BAK WAERK Document Currency KKAU (03 0 0
| WeKD BSTKD ~—PO number KBES 61 ml 0
| WeKD 'INcO1 |Incoterms KDE3 [a4 o 0
| WeKD PRSOT Pricing date KkKAU 64 Oo 0
BKB ZTERM — Terms of Payment | KDE3 [01 a 0

ee
Assign Incompletion Procedures
Display View "Error Logs for Sales Document Header": Overview
=e)
| SaTlTy |Description Proc Description IC-dialog [fl
| jor: Cust.Independent Req Oo [a]
AA Promotion Order al Standard Order CI =
AE tn from Serv. Order Oo
AEBO Standard order 11 Standard Order ns.
AEBQ (Offer 10 Inquiry/QOuotation
IN Inquiry CO
JOT Quotation 1 InquiryfQuotation C
AP Project Quotation 19 Inquiry/Quotation
AR Repair Quotation 10 inquiry/Quotation
AS Service Quotation 10 linquiry/Quotation o
st Sales Information 10 Inquiry/Quotation C1
AM Quotation f.Contr123 OI
{81 Reb Credit Memo Req. 17 Rebate Credit Memo Cc)
je1e Exptd RPebateCredMemo VF Rebate Credit Memo
|jp2 Rebate Correctn Rqst iva Rebate Credit Mero Ol
|B2E Rebate P.Correctn Rt aie Rebate Credit Memo C1
jes PartRebSett|Request ue Rebate Credit Mera CM
[BSE Exp PartRebSett! Req 17 Rebate Credit Memo CO
je4 Reb.Reqf.ManAccris 17 Rebate Credit Memo CL
[BIND indir. Sales Rebate di Standard Order OM
|BK1 Agrmnt Cred Memo Req. Af Rebate Credit Memo CI
[BK3 Agrmt Cred Memo Rea. 17 Rebate Credit Memo C [=]
|BM1— Agrrmnt Deb Memo Req. 17 Rebate Credit Memo ml Ee
|| |e

Oa
Assign Incompletion Procedures (2)
Lo

Table Vievy Edit Goto Selection Wtilities(M) Systern Help

& a) 9H ©6606 F278) SDDS MH ew
Display View “Error Logs for Sales Document Item Categories": Overview
| Ea |e
Description Proc Description (a
jo | Le bquisition 32 Requirements [+]
AEBA leBay Payment Process 20 Standard item [I
AEBT |indep. Payt Process 20 Standard tern
AEN Ctn frorn serv, order a
AES tn from serv. order a7
AFC Configuration
AFN Inquiry item
AFPNN [Free of charge item
AFPTX [Text item
AP Inquiry iter
AGC Config at matlevel 20 Standard Item
AGE Service quotation 2o Service Item
AGM Conhg.at comp.level 28 Free of Charge Serv.
JAIN Standard itern 20 Standard ltern
AGNN [Free of charge itern 24 Free of Charge Iter
ABR Repair quotation 2s Service Item
AGTX [Teo item ae Inquiry Iter Teoct
AGH Quotation item ee Service Item
ALEN (ALE standard order 2a Value Item
ALES (ALE third party 28 Value Item
| |APx Quotation item proj. 25 Service Item
APMS |Quotation itern stat. 25 Service Item =
AVC Configuration 20) Standard Itern EE)
Cs) Ce (|. }[ r+]
Assign Incompletion Procedures (3)
Table View Edit Goto Selection Utilities(M) Systera Help
S&S a) P@U S66 SHH Boao 8 | fel ee
Display View “Error Logs for Sales Document Schedule Line Categories":
(| (= (a
SLCa |Description Proc Description ()
AE MRP an General Sched. Line [=]
IAN ALE Standard =]
AQ MRF 30) (seneral Sched. Line
AT Inquiry sched line
ON No MRP 20 General Sched. Line
BP MRP 30 General Sched. Line i
BT No inventory mgmt
jay Cansumption MRP 30 General Sched Line
is Consqtissuefhwio AvCh elo} (General Sched Line
4 Consgtissuefw. Avioh jaa (General Sched, Line i]
=z Repost retPckhiw/o AC Se) General Sched, Line
3 Repost retPchiw. AC 30) (General Sched, Line j
-B Indiv.Purchase Order eT Sched.Line wfPurreq.
cD VVithout delivery 2O General Sched. Line
CON No mat.planning 30 General Sched. Line
cP MRF 30 General Sched. Line
cs Leg ‘sa ‘Sched Line w/PurReq |
jet No inv mamt/no Gdsis
icv Cansumptian MRP 30 General Sched Line
|ex No inventary mgmt 3) General Sched Line
oO Consignment Returns St (Seneral Sched. Line
ON Returns 30 General Sched. Line =]
o StoTranToCons wio AC Sc General Sched Line EI
Define Status Groups
ie

a a

_ Table View Edit Goto Selection Utilities(M) System Help

& 7) HI OO @ OMB Dap WA! ee
Display View “Incompletion Control: Status Groups”: Overview

Incempletion Control Status Groups

S_ |General [Delivery |Billing doc. [Price [Goods movement _|Picking/putaway Pack (ra
eo) oO oO oO oO oO Oo (=)
ot! o o Oo Oo oo co [I
o2| © a oO o o o CI
o3 Oo [] | oO OO
jos) 4) 4 I CI (4) CI CI
as oO oO oO
os [+] [4] (-] ly] [+] CI Co
16 oO Co oO C oO
30 [¥) | CI) tI CJ Co Co
a2 Oo LJ CO |) oO
__ [58 oO a ol iy) i (4
4 [¥) CJ tl Oo LC Oo
JD2 | C oO oO C)
Ds (¥) | i) = [¥) CJ Co
Gt a oO =] ral 4 M4
62 a) Iv] I] ira iy] Iv] a
oO Oo Oo

[=]
[=]
 Customizing Sales Doc Type

* The incompletion messages field in VOV8 allows you to control if incomplete sales documents can be saved (or not)
° If this switch is not set, then the subsequent course of the business process is determined from the status groups.

Sales Document Type

Sales Document po
[| mpleteness
_Incompleten
Sold-to party:
C1 James New York
Yes Can
document
fea ig
Yes
ret ata No
Col eee v

Follow-on functions of Document

document can mus be

|
be blocked: Maintained in full

@ mt
Shipping
Billing document
*
Topic List

Unit 11: Cash Sales, Rush Orders & Consignments

Unit 12: Intercompany Sales, Stock Transfer Order & Third Party Sales

Unit 13: Complaints Processing

Unit 14: Scheduling Agreements and Contracts

Unit 15: Material Listing and Exclusion

Unit 16: Incompletion Log

Data Flow in Sales Documents

* In SAP, data can be copied from one document to another document.

e We can create a sales document with reference to a preceding document.
* This can be done both from the initial screen as well as during document processing.
* The process is controlled using a uniform dialog box.
* When we choose copy, the system copies the reference document completely.
* If we choose Item selection, we can select certain items and change the quantities before they are copied.
* Hence, we can create sales documents with reference to documents that already exist.
¢ This process is configured and controlled using the Copying Control tool in the IMG.

=
Copying Control Basics

* In copying control, we determine which document types can be

copied to another document types.
* These are 6 ways in which copying contro! works in sales docs:
Quotation Standard Order
1. Sales document type from a sales doc. type, for example,
standard order (OR) < quotation (QT)
ae General data if customer is same General data
2. Sales document type from a billing doc. type e.g. Credit memo Business header data > Business header data
request (G2) < invoice (F2) Partner Partner
3. Delivery type from a sales document type e.g. Delivery (DL) < ial
General data
Standard order (O R) General data Seley oi Business header data
Business header data Or cancelled) Partier
4. Billing doc. type from a sales doc. type e.g. Credit memo (G2) + Partner conditions
Credit memo request (G2) tfopen quantity
Schedule Line Data > = Schedule Line Data
5. Billing document type from a delivery type e.g. Invoice (F1) < Is greater than zero)

Delivery (DF)
6. Billing doc. type from a billing doc. type e.g. Invoice cancellation
(S1) © invoice (F1)

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Copying Cont rol: From Source to Target Document

The copying control is set up for header, item and schedule

line level to match the structure of the sales document.
We can store copying requirements at every level in copying
control. Source Target
For Example, copying control can control the documents in
Header Sales doc. type Sales doc. type

Cw [voy||
the following manner:
Header level: Copying requirement 001 checks, for instance,
whether the sold-to party and the sales area in the source |
I
and target document are the same. Item category
Item Item category

Item level: Copying requirement 301checks, for instance, —_>

whether the item that is to be used as a copy has areas on
for rejection or completed status.
3 _——————————
Schedule line cat.
Schedule line level: Copying requirement 501 ensures that Schedule line cat.

|
Line

>
Sched.

only schedule lines with an open quantity greater than zero

are copied. 2 [i _
_——SSSSS=_==_S==
Features of Copying Control

There are 3 control features in Copying Control:

* Routines for data transfer: These routines control transfer of fields in
the preceding document. These routines are created to meet specific
business requirements. For example, terms of payment can be copied
from the customer master instead of the preceding sales document.
* Copying Requirements: Here we define requirements that are checked
when we create a document with reference. If these requirements are
not met in a particular case, the system issues a warning or error
message and if necessary, terminates processing. For example, same
customer is needed for creating an OR from a QT document.
* Switches: There are setting for specific controls for each transaction.
For example, we can activate or deactivate the transfer of item
numbers from the preceding document at header level for sales
documents.
Topic List

Unit 11: Cash Sales, Rush Orders & Consignments

Unit 12: Intercompany Sales, Stock Transfer Order & Third Party Sales

Unit 13: Complaints Processing

Unit 15: Material Listing and Exclusion

Unit 16: Incompletion Log

Unit 17: Copying Control

Outline Agreements

* Outline agreements play an important role in nearly all business processes.

* Customers agree on the goods to be provided under certain conditions and within a specific period of time.

* Inthe SAP System, the two main outline agreements are scheduling agreements and contracts.

* The simplest and most common type of scheduling agreement in the system is represented by document type DS.

* There are two types of contracts - value and quantity. Contracts can cover both goods and services.

* Rental and maintenance contracts are frequently used in the service industry.
Outline Agreements in SAP

Outline Agreements

Scheduling Contracts
Agreements

* DS Scheduling * ac Quantity
agreement contract
* WK1 General value
* BL Sched. agr. contract
with del. sched. * WK2 Material-related
* DEL Sched. agr. for value contract
external agent * QP Rental contract

* SC Service and
maintenance

=
Scheduling Agreements

A scheduling agreement is an outline agreement with the customer containing delivery quantities and dates.

These are then entered as schedule lines in a delivery schedule. You can either create schedule lines when you create
the scheduling agreement or you can create them later.

You can fulfill a scheduling agreement by creating the deliveries in the schedule as they become due.

You can process deliveries for a scheduling agreement in exactly the same way s you process a normal delivery.

After you have carried out the delivery, the system updates the Delivered quantity field in the scheduling agreement
item with the delivery quantity.
Features of Scheduling Agreements

The same functions are available for processing scheduling agreements as are for the sales order, including pricing.
In addition to the standard scheduling agreements you can also manage scheduling agreements for the component
supplier industry, with their special features that include:
Working with scheduling agreements with EDI output
* Entering scheduling agreements in a forecast or just-in-time (JIT) delivery-schedule
* Using different types of cumulative quantities

* Taking into account the automatic fiscal year change used by the component supplier
* Managing engineering change statuses
« Storing packing proposals
* Creating correction deliveries

=
Creating Scheduling Agreements

* To create a scheduling agreement, proceed as follows:

* On the initial screen, choose Logistics->Sales and distribution->Sales.
* Choose Outline agreement -> Scheduling agreement -> Create.
Enter the scheduling agreement type and, if necessary, the organizational data.
The values for sales organization, for distribution channel and the division are usually proposed from user-defined
parameters.
Enter the following data:
* Customer number of the sold-to party
* Customer purchase order number
* Material numbers
* Order quantities for the materials

To enter the delivery dates for an item:

* Select the relevant item in the item overview and choose Go to-> Item -> Schedule lines and enter the necessary schedule
lines.

Tm
Quantity Co ntracts

* A quantity contract (document type QC) is

an agreement that your customer will order
a certain quantity of a product from you Release Order
during a specified period.
Release Order Delivery
* The contract contains basic quantity and
Contract
price information but no schedule of Release Order Delivery
specific delivery dates and quantities
* The customer fulfills a contract by placing
sales orders against it. These sales orders
are known as release orders.

* You can specify in the contract which other

partners in addition to the sold-to party are
authorized to release against the contract

Update
of released quantities
Creating Quantity Contracts

To create a quantity agreement, proceed as follows:

* Easy access->logistics->Sales and distribution-> Sales. Choose Contract -> Create.
* In the Contract type field, choose Quantity contract, and enter the required organizational data.
* The values for sales organization, for distribution channel and the division are usually proposed from user-defined
parameters.

* Enter the following data:

* Customer number of the sold-to party in the Sold-to party field.
* Customer purchase order number for this document.
Creating Quantity Contracts (2)

Validity period in the Valid from and Valid to fields

* Material numbers
* Target quantities for the materials
* The target quantity is the projected total quantity for the material in the contract.
* If you want to enter further data for the header or items, select the corresponding menu entry.
If you wish to change data for an item, select the item before you choose the menu entry.
Enter all the necessary data and save it.
Value Contracts

¢ A value contract is an outline agreement between you and your customer.

* It specifies that your customer agrees to purchase a fixed value (target amount) of goods and services during a
defined period.

* Avalue contract can contain other agreements between you and your customer that are checked in the release
orders, such as
¢ Special price agreements
« Customer restrictions
® Material restrictions

Tm
Value Contract Releases

* Arelease order releases a partial quantity of

. Agreement
the
; agreed total value of goods or services R ON sa
in a contract. elease
Customer
: GE UK
Customer : GE UK Head Quarters
* Arelease order is a type of sales order. Validity: 2019-01 — 2020-12
Material
* Normally, we create release order with aE Release
reference to a contract : ee
—__} EKA
Customer: GE USA | _ttem Target value __
10 10000 AED

* The value of the release order is compared Saarariel -5% discount

with the value still open in the contract. M2 30°C] Release
Customer : GE UAE

Material
M4 60 PC 1000 AED
-5% discount
Valid Materials In a Value Contract

* We can restrict materials that can be

released in a value contract in the standard
system in the following ways: Assortment
* Product hierarchy Module
* List of valid materials (assortment module)

* If both the product hierarchy and the > | M1 Material 1

assortment module are maintained in the : : M5 Material 5
document, : D1 Installation
Product : :D2 Maintenance
* All of the materials that belong to one or Level hierarchy
other of the material groups are valid for
the release order.
Controlling Value Contracts

There are two types of value contracts in the

SAP system:
1. :
General value contract: This contract type
allows you to refer to different materials Wie Item Teste) group : Blank
and services within the same contract. Wa Item Usage: VCTR
2. Material-related value contract: This is
used when the contract contains exactly
one material (for example, configurable)

. Item Category group ; VCIT

inked Item Usage: Blank |
Topic List

Unit 11: Cash Sales, Rush Orders& Consignments

Unit 12: Intercompany Sales, Stock Transfer Order & Third Party Sales

Unit 14: Scheduling Agreements and Contracts

Unit 15: Material Listing and Exclusion

Unit 16: Incompletion Log

Unit 17: Copying Control

Complaints Processing

« Customer Returns

eS

Return
Cay:
Sy Ny
Crest Goods Receipt
Quality Inspection
Credit Memo

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Customer Returns
Returns Process

* The handling of returns is also part of sales and distribution process.

* A quick and efficient complaints process assures important competitive advantages.

° If complaints are made regarding valuable goods, the goods have to be returned.

* The damaged material first has to be checked. It is stored in a special area for this purpose.

¢ If the complaint is justified, the customer receives a credit memo.

* It has to be ensured that the correct amount is credited to the customer account.

* Hence, the credit memo must be approved by an authorized manager before it is issued.

em
Returns Process Basics

Reasons for returns can be:

° Faulty goods were delivered

* The delivered goods were damaged
* The customer ordered the wrong goods

After the goods are received by the plant, the following things need to be considered:

* Identification of the goods

* Clarification of the material number to find out when the goods were delivered.

em
Returns Process Basics (2)

* Goods valuation
* Only if the goods have no loss in value can they be transferred into valuated stock again.
¢ If the value has decreased, these returned goods can be managed by creating a new material master for them.

« Usage decision
* Scrapping
¢ Transfer to unrestricted-use stock or
* Reparation

* Choices:
* Credit memo or free of charge replacement delivery for the customer.
Returns Process Flow

Example: Delivery-related billing

Invoice
h
» .
be Credit Memo
Returns Returns
Delivery a
——

Order Billing
Block

¢ Acceptance of the * Create the credit

l

return goods(post memo once the

goods receipt) billing block has
* Put away in return been removed.
stock
Returns Order

¢ For the processing of returns, the order type RE (Returns) or RE2 (Advanced Returns) is used in standard SAP.
¢ Returns can be created with or without reference to a sales order or a billing document.
¢ Though the creation with reference is preferred (in that case, system receives all required data from the original doc)
« Item category for standard returns items is REN (Returns Item)
* Returns processing requires that an approval step is carried out, which is implemented by an automatic billing block.
¢ This assures that no credit memo is created without the check if the complaint is legitimate.
« Only employee with special authorization is allowed to remove the billing block, usually Sales Manager.
¢ Entering of ‘Order reason’ is mandatory for later evaluation purposes in standard SAP.

em
Returns Delivery

It is created with reference to the returns order.

Standard returns delivery type: LR

Item category is adopted from the returns order.
Item category REN is marked as “not relevant for picking”. So picking is not necessary in a returns delivery.
After the goods arrived from the customer, the goods receipt has to be posted.

Blocked Stock Returns

¢ Inareturns order, the schedule line category DN (Returns) determined.

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Returns Process Schedule Line Category

* The schedule line category can be found at the item data of the order on the schedule lines tab.
* Schedule line category DN is pre-configured with movement type 651.

Change Returns 60000173€{Item Data )

M4 bw orl ee) Gi fe ase id &
Sales Document Item 10 Item Category ‘REN | Standard Item
Material -REDMI6S xiaomi new flagship phone

SalesA_| SalesB | Shipping | Biling Document | Condtions | Account assignment _ Schedule lines Partners ~ Texts © OrderData § 4

["] Fixed date and qty Order Quantity 100 |pe

Delvery Qty 100

Quantities/D

P Delivery Date Order quantity Rounded qty Confirmed Qty S... Delivery block Delivery Qty Sch...
pp7.03.2019,0 100 100 100pc * Logos
D
Returns Process Schedule Line Category (2)

| Change View "Maintain Schedule Line Categories": Details

oy NewEnties [1 FS 4 4) Le &-l
f
Sched. line cat. DN

_ Business data
Delivery block
kK Movement type 651) 6D ret.del. returns {¥\Item rel.f.div.
Movement Type 1-Step
Order Type [ | |P.req.del.sched
Item category | \Ext.capa. planning
Blocked Stock Returns

* During goods receipt posting in the returns delivery this movement type 651 causes the posting of the stock into
“Blocked stock returns” instead of “Unrestricted-use stock”.
* “Blocked stock returns” is non-valuated stock; therefore, no accounting document will be created for the concerned
material document.
Unrestricted-use stock

* Transfer to unrestricted-use stock

* The transfer of the goods from “Blocked stock returns” to “unrestricted-use stock” is done via transaction code
MIGO_TR within SAP module Materials Management (MM).
* Movement type: 453
« “Unrestricted-use stock” is valuated stock

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Returns Credit Memo

* Once the returns order has been authorized (that is, the billing block has been removed by an authorized person),
the credit memo and the required accounting documents are generated.

* The creation of the credit memo can be carried out independently of the inbound delivery of the damaged/defective
goods.

© Standard billing type: RE (Credit for Returns)

Creating Returns Cycle

* The following transactions can be used while creating returns in SAP:

* Creation of returns order: VAO1
* Creation / Change of returns delivery: VLOIN / VLO2N
* Check of returns stock: MMBE
* Transfer posting of returns stock: MIGO_TR
* Creation of returns credit memo: VFO1 or VFO04 (Billing due list)
Delivery Free of Charge

* Delivery free-of-charge document can be used when you want to send your customer a sample, for example.
e By activating a delivery block in the sales document type, we ensure that delivery free-of-charge transactions are not
released for delivery until they have been checked by the relevant employee, for example, Sales Manager.
* If the manager decides that the delivery should not take place, he or she can maintain a relevant reason for rejection.
* In Customizing for item categories, we can determine that items in sales document type FD are free of charge. The
order is confirmed based on the availability of goods.
A delivery is then created; the goods is subsequently picked, confirmed, and delivered to the customer.

FD Free Of on LF Delivery
Delivery

M1 10 PC KLN M1 10 PC
Subsequent Delivery Free of Charge

We enter as subsequent delivery free-of-charge document. For example, when we need to deliver material for an
order due to a complaint.
* Customizing for sales document type, SDF determines that this transaction requires a preceding document.
* The relevant copying controls must be set up for all preceding documents that might be used.
* For example, copying control for SDF from an RE (returns order).
* If the employee decides that the delivery should not take place, he or she can maintain a relevant reason for rejection
in the sales document.

RE Return iN SDF Subs. SX LF Delivery

Delivery

Reason for ——— [i M1 10 PC KLN Mi 10 PC

Rejection 11
M1 10 PC REN
Invoice Correction Request

* Invoice correction will take place if there is an issue with the quantity or price of a billed material.
* Invoice correction request is always created with reference to an incorrect billing document.
¢ Standard document type used for Invoice correction request is RK.
* Two items are automatically created for each item when you create Invoice Correction w.r.t to an invoice:
* First — credit item
* Second — debit item

¢ The price & quantity in the debit items can be changed but the credit items cannot be changed.
* The initial net value of the document is zero.

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Invoice Correction Request

* Invoice correction request is used to create either debit memo or credit memo to customer. To distinguish between
both of then separate document types can be created for invoice correction. For example —
* Invoice correction for credit memo

* Invoice correction for debit memo

Invoice
Correction
Request

(RK)
Steps in Third Party Sales Processing

* When we create a Sales order which contains a Third Party Item the system automatically creates a Purchase
requisition.
* It is Schedule line category in the sales order which will trigger to create Purchase requisition automatically
* The Purchase requisition will be converted to Purchase order
* The Vendor supplies goods to the customer as per the PO and informs the company about the supply of the goods
and Invoices the company towards the supply made
* The company then will make a statistical goods receipt (optional step)bills the company
* The Vendor Invoice is posted in company, this process is known as Invoice receipt.
* The Company finally bills the Customer
Purchase Requisition in Sales Order Screen

Here we can see that a Purchase

H( oH DAB EY requisition “10000070”is created for
= — a Sales order 4000068. The Schedule line
Document Item Item category Standard Item category is “CB”
Nateril Xf-100 DEMO_ TESTING

SaesA Sales (Shopng (Bling Document Condtons Account assignment Schedule nes) | Partner Order Data ‘Stans |/¢) « [0
— OrderQuantty [Si
Delvery time ¥ Delvered gty 0

_PDelvery D.n Order quantity Rounded qty Confirmed Qty —S... Delvery block Delvered
qty Sc... Purchase Requisition Red... A
apes 2013 0 5 5 OKG v cB 10000070 10 a
D 01.07.2013 0 5KG b/ CB 10000070 10 4
Material Item Category Group-Third Party

Display Material CP-00169 (Trading goods(Standard))

@} =Padditional data 4% Organizational levels

Material 'EP-oo1es [Bbeciatty flakes li |

Sy
| General data
Base Unit of Measure EA Each Material Group 00207
Old material number so Ext. Matl Group
Division ‘00| Lab/Office i
Product allocation Prod.hierarchy
X-plant mat! status a Valid from
{ Assign effect. vals GenltemCatGroup BANS Third-party item
Material Item Category Group-Third Party (2)

Display Material CP-00169 (Trading goods(Standard))

@} =P Additional data ga Organizational levels

Material [Fe-o016s ‘[Bibecalty flakes | Ea |

Sales Org. (3000 USA Philadelphia
Distr. Chl _[10) Nan Dist Channel |< |

| Grouping terms
Mat! statistics arp Fl Relev. f. statis.. Material pricing arp 01 Standard Parts
Volume rebate group ‘02! Minor Rebate Acct assignment grp []
Gen. item cat. arp ‘BANS — Third-party iterr Item category group BANS Third-party iterr
Pricing Ref. Matl [t—‘“‘sSC~‘d*
Product hierarchy
Commission group WBS Element |
Schedule Line Category-Third Party
* Schedule line category “CS” is used (which is not relevant for delivery) and Item category is selected as “5- Third
party item”.
¢ By proposing this Schedule line, the system automatically creates Purchase requisition with Order type as “NB” when
the order is saved. Movement type should be empty.

Sched.line cat. cs] Leg

Business data
Delivery block a
Movement Type , | ‘Item rel.f.dlv.
Movement Type 1-Step ||
Order Type 'NB| Purchase Requisition -_|P.req.del.sched
Item Category 5) Third-party
Acct Assat Cat. xX All aux.acct.assgts.
Topic List

Unit 11: Cash Sales, Rush Orders & Consignments

Unit 13: Complaints Processing

Unit 14: Scheduling Agreements and Contracts

Unit 15: Material Listing and Exclusion

Unit 16: Incompletion Log

Unit 17: Copying Control

Intercompany Sales
Process of Delivering the stocks to the Customer from the Plant belonging to different Company code.

delivers
Customer C100 ‘ ra’ Plant 1200

Sales
Organization
1100

bills Company Code

Company Code \
2200 Organization
2200

=a
Intercompany Sales- Business Process

Sales organization and the delivering Plant are assigned to different company codes

Sales organization: Processes the sales order & Bills the customer

Delivering Plant: Delivers goods to the customer.

Delivering Plant company Bills to ordering Sales Organization

This process is known as Inter-company billing

em
Intercompany Billing Configuration Path

~ [Ey _ [Sales
and Distribution)
, Master Data
»
> ~-BRERD Basic Functions
» Sales
«+>
b Foreign Trade/Customs
Billing
Billing Documents
B

Empties Update
Payment Cards
YW

Rebate Processing
Intercompany Billing
+ [ey ® Define Order Types For Intercompany Billing
: [ay (> Assign Organizational Units By Plant
: [= (D> Define Internal Customer Number By Sales Organization
+ ® Automatic Posting To Vendor Account (SAP-EDI)
Intercompany Billing-Configuration

* Material Should exist in both the Plants ( Ordering and Supplying)

* Intercompany Invoice type “IV” should be assigned to Order type “OR”
* Assign Sales organization, Distribution channel and Division to the Plants for the Intercompany sales transactions
* These assignments are used for processing an Intercompany Billing
* Create Customer which represents ordering Sales organization- so that the Intercompany billing uses this customer
for billing

Change View "View for Inter-Company Billing": Overview

YORE
Sales org. Sales Organization CustInterC Cust.inter-co.bill.
joo Sales Org. Germany 10000 IDES AG
Intercompany Billing-Configuration (2)
Change View "Conditions:
Condition Types": Details
DY New Entries i Gh > @ iS &

pra lasOrg/Plant/Maten Conde. type [vei |inercompanvlPrieel| Access seq. [P01] SalesOrg/Plant/Maten
— for ial
Control data 1 Control data 1
Cond. cass B Prices Plus/ minus A Positive Cond. cass 8! Prices Pus/mnus A Postive
Cakwat.type —[C’ Quantity . _.
Cakult.type © Quantity
Cond.cetegory I Price for intercompany biling Cond.category =! Prica for ntercompany biling PIO1 used In pricing

Rounding rule | Commerce Rounding rule | | Commarcal procedure. RVAAO1 is

Sector. Seuctore. reference condition type for
Group condition Group condition IVO1 and the same is defined
Group cond, Group cond. in the condition type IVO1,
— =—_? because of this, the two
Changes which can be made Changes which can be made condition types represent
oe
Header condt.
Cane ante amie /\Amount/ percent Qty rebtion
eali ener_ © Manwalenty Faserer! §me values during pricing
(¥ tem condition Delete Vale (i t t | |Dalete Value (OiCalculst.type

Master data _Master data

valid from Today's date PricingProc vald from PricingProc
Vaid to 31.12.9999 delete fi. OB Do not delete (set the delet..- Vaid to delete fr. 08 Do not delete (set the delet.
RefCon Type ¥)Candition index RefCon lw

RefAppicatio (Condt.update

Scales
¢ Quantity scale Scale formula Scale bass ¢ Quantity scale Scale formula
Check value A Descending Unit of meas. Check vaue A Descending Unit of meas.
Scale type an be mantained in con Scala type ‘can be maintained in con
Intercompany Billing-Configuration (3)

Pricing for Intercompany Sales and Billing:

e Intercompany Sale uses standard Pricing procedure RVAAO1
* Intercompany Billing uses standard Pricing procedure ICAA01
* Pricing Procedure ICAAO1 has condition type IV01 that represents revenues for Supplying company code in the
intercompany billing.
Intercompany Billing-Configuration (4)
Procedure ICAROL! Intercompany Biling
Control
Reference Step Overview |
_ Step Co... CTyp Description Fro To Ma... R... St... P SuTot|/Reqt CalTy... BasT... Acc... Accr... | [i]
/810 1 — HA00 Percentage Discount MW O10
ie10 2 ‘HBO Discount (Value) Ww Oo
| leno 3. -HDOO Freight VO} 0} 4 R.... Description
| jets Q FOO Freight io) OO) 4 iu Discount before tax -
je20 © #HM00 Order Value M)0O} 0 21 Invoice list control =
| |900 0 Net value 2 1/0} O} s
909 0 IV02 Intercompany % (Ji) O xs 22 Only in Billing Doc.
910 0 — TV01 Intercompany Price C1 |}0O} 0 xis 22 |24 Only in Biling Doc.
914 0 SKTV Cash Discount 1) O MM D2 | 25 only in RebatBildoc
_ 915 0 MST Output Tax Ji) O 10 {32 License Check
9919 © DIFF Rounding Off Ji} O 13 \33 Tax code 2 <>'0'
| js20 0 Total ololola 139 Retal price
930 0 SKTO Cash Discount LJ) WJ 9 40 TAXK2, TAXM2<> '0" ms
932 0 —_RLOO Factoring Discount oiole 23 || |43 Pricing - Emoties ~
933 0 MW1S Fact.Dscount Tax 932 Ow) v4) 21
1935 0 GRWR Statistical Value OiO|M\c ef
_—
Intercompany STO
Process of transferring stock from one plant to another where the plants belong to different companies.

Sales Org. 1000

Company Code | (

2008 TET aN PAO

CompanyCode =| | 4 or (6)
2200 ~ | | é

=a
Intercompany STO (2)
Types of STO

* Stock transfer between two storage locations.

* Stock transfer between two plants of same company code — Intra company STO

* Stock transfer between two plants of different company code- Intercompany STO
Intercompany STO-Configuration

STO Document type should be assigned to Supplying and Receiving plants (Standard STO document type used is NB)

Change View "Default Document Type for Stock Transport Orders": Overvi
Y NewEntres (9 Gh Kl
Doc. Category iF

Pl Pht Type 0... To. Of

20101000NB [} [J] *
(201012008 —) ¥
Intercompany STO-Configuration (2)

For a combination of STO document type and Supplying plant Delivery type should be assigned (standard Delivery type
used here is NLCC)

DT Dscr. SP|_ Name 1 DITy. Description CRI Description... S... R... De... De... DT... A. Req... Ef
SS ee ais

Standard PO 3100 Chicago NLCC Replen.Cross-c...B SD delivery 0 -

Standard PO 3105 Chicago NLCC Replen.Cross-c..B SD delivery a8 =
Standard PO 3110 Auto Supplier .NLCC Replen.Cross-c..B SD delivery Cf}
Standard PO 3111 Auto OEMUS NLCC Replen.Cross-c..B SD delivery io
Standard PO 3112 Auto Wholesal..NLCC Replen.Cross-c..B SD delivery ae
Intercompany STO-Configuration (3)

2 en Purchase Order CHAP SIMG_CMMENU...

: B @ pefine number Ranges SING SIMG_CFMENU...
+ By & Define Document Types SING SIMG_CFMENU...
- By @ Set Tolerance Limits for Price Variance SING SIMG_CFMENU... Define Shipping Data for Plants
» Release Procedure for Purchase Orders CHAP OLMEFREIGBEST
* By © Define Screen Layout at Document Level SING SIMG_CFMENU... In this step, you maintain the shipping data for plants for stock transfer processing.

' ES Texts for Purchase Orders CHAP SIMG_CMMENU...

: By @ Define Tolerance Limit for Archiving SIMG SIMG_CFMENU... Here you maintain the customer number of the receiving plant Thise customer
number is used in SD shipping processing to identify the goods recipient (ship-to
ad Set up Stock Transport Order
party) if provision has been made in Customizing for a stock transfer to be carried out
* E} @ Define Shipping Data for Plants |SING SIMG_CFMENU... with an SD delivery (See Assign Delivery Type and Checking Rule).
+ BY @ create checking Rule SING SIMG_CFMENU...
+ B @ Define Checking Rule SIMG SIMG_OLME_V... You can also define the following for the supplying plant
+ E @ Assign Delivery Type and Checking Rule SING SIMG_OLME_V...
» E} @ Assign Document Type, One-Step Procedure, Underdelvery SING SIMGOLME_WV... « Sales organization
« [Restrictions for the Industry Solution for Defense Forces & P SIMG /ISDFPS/CUST...
, Set Up Stock Transfer Between Storage Locations + Distribution channel
+ EB & Define Requirement Profile SIMG V_TREQPRF
: By @ Activate Automatic Delivery Creation and CRM Biling SIMG /SPE/V_T161V « Division
* Ey & Activate Automatic Delivery Creation for PO Type and ShippiSIMG /SPE/V_TDELV...
With this data, the system determines the shipping data for the material to be
- By ® Set up Subcontract Order SING SIMG_CFMENU...
transferred (e.9. the shipping point).
+ By © Define Reasons for Ordering SING SIMG_CFMENU...
- EB @® define Reasons for Cancellation SING SIMG_CFMENU... You als define the language in which the PO texts are to be maintained for the
* By © Set up Authorization check for G/L Accounts SING SIMG_CFMENU... supplying plant
1B Tnunirinn Din uAD CIM PEMENII
Intercompany STO-Configuration (4)

~ [ey Logistics Execution |

» Direct Store Delivery
» Ee Decentralized WMS Integration
r fy Warehouse Management
~ By __ Shipping
» By Basic Shipping Functions
= Deliveries
° [=e Check Delivery Types and Item Categories
[2y © Define Delivery Types
- & ® maintain Key Conversion of Document Types for Cross-System Flow of Goods
-[ ® Define Item Categories for Deliveries
Ly © [Define Item Category Determination
in Deliveries
Change View "Delivery item category determination": Overview
nN * . . n" .

") New Entries [& fab fl

Delivery item category determination

DWT ItCG Uso. ItmC ItmC MItC MItC MItC ‘MItC Mitc MItC MItC MItC MItC MItC ‘ih
INLCC NORM V NLC «
Intercompany STO-Process steps

* Purchase Order by receiving company code

* Delivery by Supplying plant
* Post goods Issue using movement type 643 by supplying plant
* Picking ( if relevant) by supplying plant
* Billing Supplying company code bills receiving company
* Goods receipt in receiving Plant (MIGO)
* Invoice receipt in receiving Plant (MIRO)
Illustration of Intra Company STO

* Process of Delivering the stocks to the Customer from the Plant belonging to same Company code.
* A Product, say, P1 is manufactured in Plant A. For some reason (e.g.: further processing) it is transferred to Plant B of
the same company code. This process is called as Intra-Company Stock transfer
Company B in Country B
Sending Plant Receiving Plant

Order ‘STO’
-ED Goods Issue
-ED Goods Receipt

Goods Issue
ED Goods Issue ED Goods Receipt
Postings orca k
(mvt 647/641) (mvt 101)
Process Steps of Intra Company STO

Plant B raises a STO (Stock Transfer Order) on PlantA

Plant A might have the stock ready with it or it may need to manufacture the same
Once stock is available in Plant A, the same will be dispatched (PGI) to Plant B (Movement type 641)
Plant B receives the stock and does GR (MIGO - Movement type 101).
Configuration of Intra Company STO

Display IMG
G | if) | Existing BC Sets BC Sets for Activity 4yActivated BC Sets for Activity

Structure
+ les Purchasing
F lea Environment Data
+ [es Material Master
b les Vendor Master
* [es Restrictions for the Industry Solution for Defense Forces & Public Security
* [es “& Create Purchasing Groups
r [es Purchasing Info Record
b Sustainabilty
b les Source List
b [es Quota Arrangement
t [es RFQ/ Quotation
b Serial Numbers
r Shopping Cart
+ [ets Purchase Requisition
7 les Purchase Order
* [es (& Define Number Ranges
* [es & [Define Document Types
Configuration of Intra Company STO (2)

¢ STO Document type should be assigned to Supplying and Receiving plants ( Intra Company STO document type used
in UB)

Type Doc. Type Descript. Itmint. NoRgelInt NoRge Ext |

NB2 Advanced Returns PO 10 45 41 ”

__NB2C Adv. Returns ccSTO 10 45 41
= Standard POo 10 R4
i accenture company

| UB2 Advanced Returns STO

Em
Third Party Sales

Scenario definition: Process of Delivering the goods to the Customer by a Vendor.

* The Customer places order, Company raises PO requesting the Vendor to supply the goods to the Customer, the
Vendor then supplies the goods to the Customer and Bills to the company, Company then Bills to the Customer for
the order.
* Sales Order is entered as usual with document type OR
* In this process the Delivery and PGI is not part of the sales transaction unlike the standard sales order processing.
* [tem category type TAS is used and Schedule Line Category CS.

Purchase
Purchase Order
Requisition