Question: Review on SD Enterprise Structure Configuration.
Answer: The following link will show the essential steps in SD Enterprise Structure configuration:
- Create new Sales Organization.
- Check or assign the Sales Organization to a Company Code.
- Create new Distribution Channel.
- Check or assign Distribution Channels to the Sales Organization.
- Create new Divisions.
- Define Plant and Division combination for Business Area.
- Derivation Rule.
- Check or assign Division to the Sales Organization.
- Setup Sales Area.
- Check or assign Sales Org + Dist Channel to Plant.
- Create new Sales Office.
- Assign Sales Office to one or more Sales Area.
- Create new Sales Group.
- Assign Sales Group to Sales Office.
- Define Common Distribution Channel.
- Define Common Division.
- Assign Pricing Procedure to Sales Area combination.
- Shipping Point and Shipping Point determination.
- Create new Material for the new Sales Area.
- Create new Customer for the new Sales Area.
- Create Sales order.
- Create Delivery.
- Create Billing.
All the configuration and process steps above can be found in the following Google Slide link.
Click here to view the Presentation:
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Question: Review on Delivery Plant Determination.
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Answer: A Delivery Plant is the specific physical location, warehouse, or distribution center from which goods are shipped and issued to a customer. It holds the stock, triggers inventory reduction, and determines the shipping point for an outbound delivery.
Core Concepts:
- Delivery Processing: Acts as a primary prerequisite parameter combined with loading group and shipping conditions to automatically propose the Shipping Point.
- Availability Check: Triggers the ATP (Available-to-Promise) check to see if the requested quantity is in stock.
- Delivery Plant Determination logic and priority:
- Customer-Material Info Record (CMIR) : CMIR is optional but if created it is the combination of Customer (Ship-to-Party) + Material + Sales Org + DC to hold the Delivery Plant determination as the 1st Priority.
- (T-code VD51, VD52, VD53).
- Customer Master Record (Ship-to-Party): This is the 2nd priority choice of Delivery Plant determination (specifically in the Sales Area data view found in the Delivery data segment).
- (T-code BP).
- Material Master Record: If the Delivery Plant is not found in Priority 1 & 2 above then only the system will try to find it in the Material Master Sales Area data view.
- (T-code MM01, MM02).
- If it cannot be determined, then user will have to enter it manually in the Sales Order item data else Availability Check and Shipping Point cannot be determined.
- Picking Location determination: via IMG t-code OVL3 {Shipping Point} + {Delivery Plant} + {Shipping Conditions}. After the Picking Location is determined, the system will further check if is as activated for LE-WM (Stock Room Management) or SCM-EWM for Warehouse Integration for the Picking processing.
- Stock Reduction: Determines which specific plant inventory is reduced when posting a goods issue for an outbound delivery.
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Question: Review on Shipping Point Determination.
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Answer: In SAP, a Shipping Point is the highest-level organizational unit in Logistics Execution that controls and handles the physical dispatch of goods. It represents a fixed location such as a warehouse, loading dock, bay, or plant gate where outbound deliveries are processed, picked, packed, and posted for goods issue.
- (T-code OVXC) or (SPRO > Enterprise Structure > Assignment > Logistics Execution > Assign shipping point to plant)
- (T-code: OVL2) or (SPRO > Logistics Execution >Shipping > Basic Shipping Functions > Shipping Point and Goods Receiving Point Determination > Assign Shipping Points)
Core Concepts:
- Delivery Processing: Initiates and manages outbound delivery documents.
- SAP proposes the Shipping Point Automatically during sales order creation using this standard rule:
- {Shipping Point} = {Shipping Conditions} + {Loading Group} + {Delivering Plant}
- {Shipping Conditions}: Derived from the Customer Master record (Business Partner Sold-to-Party) (e.g., Standard vs. Express).
- {Loading Group}: Derived from the material master record at the Sales/Plant data view (e.g., crane-lift vs. forklift-pallet).
- {Delivering Plant} : Derived from the customer-material info record or customer business partner delivery plant or material master sales area data view (point of warehouse and picking location).
- Mandatory Requirement: Every Outbound Delivery in SAP must point to one specific shipping point, without which a sales order cannot be delivered.
- Plant Assignment: A shipping point must be assigned to at least one plant, and a single plant can have multiple shipping points depending on dispatch methods (e.g., bulk rail vs. small parcel docks).
Click here to view the Presentation:
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Question: Review on Route Determination.
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Answer: The Route in SAP SD (Sales and Distribution) defines how goods travel from a shipping point to a customer, controlling transit times, delivery scheduling, and logistics execution. It automates transportation planning by mapping out the mode of transport, transit duration, and specific routing stages. ROUTE is determined in the Sales Order item along with the Plant and Shipping Point and it is essential for Transportation Management (SAP TM) for Freight Order creation.
Key Factors for Route Determination using the following 4 influencing factors:
- Shipping Condition: The system checks the Sales Order Type first for a default Shipping Condition. If it is not defined there, the system then try to locate it in the Sold-to Party customer master record.
- (T-code VOV8) or (SPRO > IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Document Type).
- Transportation Group: This influencing factor is found in the Material Master Sales/Plant view, the transportation group is a key code used to classify materials with similar shipping or handling needs (such as palletized goods, liquids, or fragile items)
- (T-code MM03).
- Departure Zone: Derived from the Country and Transportation Zone assigned to the Shipping Point
- (T-code OVL7) or (SPRO > Logistics Execution > Shipping > Basic Shipping Functions > Routes > Route Determination > Maintain Country and Transportation Zone for Shipping Point).
- Destination Zone: Derived from the Country and Transportation Zone assigned to the Customer Master's Ship-to Party
- (T-code BP).
Click here to view the Presentation:
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Question: Review on Picking Location Determination.
Answer: Picking Location is necessary in the Outbound Delivery where stocks are picked from the MM Storage Location and to trigger Warehouse Activities depending if the Storage Location is mapped to LE-WM (Stock Room Management) of EWM (Extended Warehouse Management).
- (T-code: OVL3) or (SPRO > Logistics Execution > Shipping > Picking > Determine Picking Location > Assign Picking Locations)
Key Elements of the Formula:
- Shipping Point: Dispatched location derived from the delivery plant, loading group, and shipping condition.
- Plant: Delivering plant copied from the sales order item.
- Storage Condition: Value maintained in the material master record (Plant Data / Storage 1 view).
Click here to view the Presentation:
Goto Step 3 in the following Google slide link:
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Question: Review on BP Grouping and Account Group linkage.
Answer: Business Partner (BP) Grouping controls the number range and grouping for the general Business Partner master record, while a Customer Account Group controls the number range, field status (optional/required/hidden), and partner functions for the SD customer segment. They are linked via Customer-Vendor Integration (CVI) which is used to also determine the Direction of Number Range or if Same or different number for BP and Customer number.
- (T-code OBD2) or (SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparations for Creating Customer Master Data > Define Account Groups with Screen Layout (Customers)
- (no T-code found) just use (SPRO > Cross-Application Components > Master Data Integration > Customer/Vendor Integration > Business Partner Settings > Settings for Customer Integration > Define Field Assignment for Customer Integration > Assign Keys > Define Number Assignment for Direction BP to Customer
Click here to view the Presentation:
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Question: Order Type in SD Sales Document.
Answer: A Sales Order type is a control mechanism that defines how a specific business transaction is processed, structured, and fulfilled. It controls vital parameters like number ranges, partner functions, credit checks, and whether delivery and billing documents can be automatically generated.
- (T-code VOV8) or (SPRO > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Document Types)
Common Standard Types:
- OR (Standard Order): Regular sales process covering full order-to-cash steps including delivery and billing.
- RO (Rush Order): Urgent order where delivery is processed immediately after creation, with billing following close behind.
- CS (Cash Sales): Immediate transaction where customer payment and billing happen simultaneously at order entry.
- RE (Returns): Handles customer returns for credit memos or replacement goods.
- CR (Credit Memo Request): Customer complaint processing to ask for a credit.
- etc.
Click here to view the Presentation:
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Question: SD Item Category determination.
Answer: An Item Category in SAP SD is a control code assigned to a line item in a sales document. It dictates how that specific item behaves throughout the sales cycle, controlling key functions like pricing, delivery relevance, billing relevance, and inventory updates.
- Key Functions Controlled by Item Categories:
- Pricing: Decides if the system should calculate a price for the item.
- Delivery Relevance: Dictates whether an outgoing delivery must be created for the item.
- Billing Relevance: Controls if and how the item gets invoiced (e.g., delivery-related or order-related billing).
- Schedule Lines: Determines if schedule lines are allowed, which impacts inventory and availability checks.
- etc.
- (T-code VOV7) or (IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Item Category).
- Influencing Factor to determine the Item Category:
- Sales Document Type: The transaction context (e.g., standard order, quotation, inquiry, or return) that dictates the overarching business process.
- Item Category Group: An attribute assigned in the material master record (e.g., NORM for standard goods or SRVP for services) defining how a product category is grouped for sales.
- Item Usage: A special functional indicator triggered during specific sub-scenarios like bills of materials (BOM), free goods, or text entries. You can also find Item Usage assigned to the Customer-Material Info Record.
- Higher-Level Item Category: The category of a superior main item used to drive the automatic determination of sub-components or dependent items.
- (T-code VOV4) or (IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category).
Click here to view the Presentation:
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