FI - INTEGRATION WITH SALES AND DISTRIBUTION

SD – ORGANIZATIONAL STRUCTURE

Typically the following are the important elements of SAP SD

 Sales Organization
 Distribution Channel
 Division
 Sales Area
 Sales Group
 Sales Person

Production Client: 300

Company – Moon Corporation: 1000

Operating Concern: 1000

Controlling Area IND – 1000 USA - 3000

Co Code – 1000 2000 3000

Plant ABCD: 1100 1200

Sales Org ABCD: 1110 1120

Dist Chanl Resale-15 25 35

Dist Chain 1110-15 1110-25

Division TV01 02

Sales Area 1110-15-01

 ORGANIZATIONAL SALES CYCLE

SD SD

Sales Inquiry / Sales Order

Quotation

GL, AR Delivery
FI Note
SD
Update (Credit
Check) Sales Cycle

MM

FI Incoming Payment Goods

Issue

Billing Invoice

SD

Typically the following are the documents created during a Sales Cycle
 Inquiry
 Quotation
 Sales Order
 Delivery Note
 Goods Issue
 Order Invoice
 Credit / Debit Note
FI Entries

1- When sales enquiry

No FI entry

2- When sales quotation

No FI entry

3- When Goods deliver

Increase decrease Stock account

To Inventory of finished goods

4- When billing

Customer Account
To Sales Accounts

Integration Steps

Define Sales organization (OVX5)

Path: Spro → Img → Enterprise structure → Definition → Sales and Distribution → Define,
copy, delete check sales distribution

Double click on Define sales Organization

Click on new entries
Sales organization – TASO
Statistics currency – INR
Click on Address field
Fill Address
Press enter key and Save
Come back wise

Define, Copy, Delete check distribution channel (OVXI)

Path: Same
Double click on Define distribution channel
Click on new entries
Distribution channel Name
DR Direct sales
Press enter key and Save
Comeback wise
Define Shipping Point (OVXD)

Path: Spro → Img → Enterprise structure → Definition → Logistics-execution → Define, copy,

delete check shipping point

Double click on Define shipping point

Click on new entries
Shipping point – TASP
Click on Address field
Fill Address (Tick mark)
Click on save
Come back twise

Assign Sales organization to company code (OVX3)

Path: Same as up to enterprise structure → Assignments → Sales and Distribution →Assign

sales organization to company code

Click on position
Sales Organization – TASO
Company code – TAST
Press enter key and Save

Assign Distribution channel to sales organization (OVXK)

Path: Same

Click on new entries

Sales organization Distribution channel
TASO DR
Press enter key and Save
Come back twise

Assign Division to Sales organization (OVXA)

Click on new entries

Sales Organization Division
TASO ST (Steel)
Press enter key and Save
Come back wise
Setup Sales area (OVXG)

Path: Same

Sales area is nothing but the combination of Sales organization + Division + Distribution
Channel

Click on new entries

Sales Organization Distribution channel Division
TASO DR ST
Press enter key and Save
Come back two times

Assign Sales organization – Distribution channel – Plant (OVX6)

Path: Same

Click on new entries

Sales organization Distribution channel Plant
TASO DR TAPL
Press enter key and Save
Come back wise

Define Rules by Sales area (OVF2)

Path: Same as up to Sales and Distribution → Business area account assignments → Define rules
by sales area

Click on position
Sales Organization – TASO
Rules – 1 (Business area determine Plant / Division)
Press enter key and Save

Assign Shipping point to Plant (OVXC)

Path: Same as up to Assignments → Logistics execution → Assign shipping point plant

Select plant
Click on find field in standard tool bar
Find - TAPL (Plant code)
Press enter
Click on TAPL Plant
Now select TAPL plant
Click on Assign tab
Select TASP shipping point check box (Tick mark)
Press Save
Comeback wise

Define Pricing Procedures determination (OVKK)

Path: Spro → Img → Sales and Distribution → Basic function → Pricing → Price control →
Define and Assign price procedures

Double click on Define pricing procedures determination

Click on new entries

Sales Orga Distr chanl DivisionDocum prc Cust prc Pripro Ctype
TASO DR ST A (Standard) 1 RVAA01 (STD) PR00
Press enter key and Save
Come back wise

Define tax determination rules (OVK1)

Path: Spro → Img → Sales and Distribution → Basic function → Taxes → Define tax
determination rules

Click on new entries

Tax country Sequ Tax category
IN 1 MWST (Output tax)
Press enter key and Save

Note: If this condition type is already assigned in the country then no need to assign again.

Define Tax Account (OB40)

Path: Spro → Img → Financial Accounting (new) → Financial accounting global settings → Tax
on sales/purchases → Posting → Define tax Accounts
Double click on MWS
Chart of Account - CHAC
Click on Tax code check box
Click on save
Click on Posting key tab
Debit – 40
Credit – 50
Click on save
Click on Account tab
Tax code Account
A3 Output Tax Account
A4 Output Tax Account
Press enter key and Save
Define Common Distribution Channel (VOR1)

Path: Same as up to Sales and Distribution → Master data → Define common distribution
channel

Click on position
Sales Organization – TASO
Distribution channel Distribution channel
DR DR
Press enter key and Save.
Come back wise

Define Common Division (VOR2)

Path: Same

Click on position
Sales Organization – TASO
Division Division
ST ST
Press enter key and Save

GL Account Creation

Go to FS00 Create Sales accounts under incomes with fields status group G029 and Update with
CO

Assignments Accounts for Automatic posting (VKOA)

Path: Spro → Img → Sales and Distribution → Basic function → Account assignments / costing
→ Revenue account determination → Assign GL Accounts

Double click on table 01

Click on new entries
Appl Condtyp Chart ac Sales Orga Ac assign Cust Ac assig mter Actkey GL ac
V KOFI CHAC TASO 01 (Domest rven) 03 ERL Sales Ac
V KOFI CHAC TASO 01 03 MWS Output ax

Press enter key and Save

Comeback three times
Setup Partner determination

In SD we maintain for type of partners

SP – Sold Party
SH – Ship to Point
BP – Bill to Party
PY – Payer

Path: Spro → Img → Sales and Distribution → Basic function → Partner determination → Setup
Partner determination for customer master

Double click on Setup Partner determination for customer master

Double click on Account group-function Assignments
Click on new entries
Partner Accounts
SP T8MC
SH T8MC
BP T8MC
PY T8MC
Press five time enter key and Save
Double click on Partner determination Procedures
Click on new entries
Partner Name
T8MC SD Customers
Press enter key and Save

Now Select T8MC

Double click on Partner function in procedures
Partner Partner function Not modify Modify
T8MC SP Activate Activate
T8MC SH Activate
T8MC BP Activate
T8MC PY Activate
Press enter key and Save
Double click on Partner determination Procedures Assignments
Click on position
Account group – T8MC
Partner procedures – T8MC
Press enter key and Save
Comeback three times

Assign Shipping Point (OVL2)

Path: Spro → Img → Logistics execution → Shipping → Basic shipping function → Shipping
point and Goods receiving point determination → Assign shipping point

Click on new entries

SC Loserp Plant Propship
01 0003 (Manual) TAPL TASP
Press enter key and Save

Create Customer master data (XD01)

Path: Sap easy access → Accounting → Financial Accounting → Account receivables → Master
records → Maintain centrally → Create

Account group – Material Customers for TAST

Company code – TAST
Sales Organization – TASO
Distribution channel – DR
Division – ST (Click tick mark)
Fill Name Address field
Click on company code data tab
Reconciliation accounts – Sundry debtors account
Sort key – 031
Payment term – 001
Tolerance group – TAMC
Click on Sales area Data tab
Sales
Customer pricing procedures - 01 (Standard)
Shipping tab
Delivery priority – 02
Shipping Condition – 01
Click on Billing documents tab
Select Price determination
Incoterms – EXW (From plant)
Terms of Payments – 0001
Account assignments group – 01 (Domestic revenue)
Tax
I (Liable for tax)
Press enter and Save

Material Creation (Finished Goods) (MM01)

Go to MM01
Material – FINISH01
Industry sector – M
Material type – FERT
Click on Select view tab
Select
Basic data1, Sales Org data1, Sales Org data2, Sales General / Plant data, MRP 1, General plant
data / Storage 1, Accounting 1,

Click on Organizational level tab

Plant – TAPL
Storage location – HYD
Sales Organization – TASO
Distribution channel – DR (Tick mark)
Material – Finished products
Base units of measures – KG
Material group – ST
Gross weight – 1000
Net weight – 1000
Weight unit – G
Click on Sales Organizational 1 tab
Division – ST
Tax – 1 (Full tax)
Click on Sales organization 2 tab
Accounts assignments group – 03
Click on Sales general / Plant tab
Availability check – KP (No check)
Transport group – 0003 (Container)
Loading group – 0003 (Manual)
Click on MRP 1 tab
MRP type – ND
Click on Accounting 1 tab
Valuation class – 7920
Price control – S
Standard price – 400
Click on Save

Creation of condition type (VK11)

Path: Sap easy access → Logistics → Sales and Distribution → Master data → Condition →
Select using condition type → Create (VK11)

1- Condition type – PR00

Press enter key
Select Material with release status radio botton
Sales organization – TASO
Distribution channel – DR
Material Amount Valid from Valid to
TAF8MC 500 01.04.2009 31.03.2010
Press enter key and Save
Comeback wise
2- Condition type – MWST
Press enter key
Select Domestic taxes (Tick mark)
Country - IN

Tax Tax Valid from Valid to Tax

1 1 01.04.2009 31.03.2010 A4
Press enter key and Save

When Finished products received from Production departments after Processing (MB1C)

After processing the Raw-material the finished products are coming back to Warehouse
department at the time FI entry will be

Inventory of finished goods account Dr

To Increase / Decrease stock account

Path: Sap easy access → Logistics → Material managements → Inventory managements →

Goods movements → Goods receipts → Other

Documents date – 01-04-2009

Posting date – 01-04-2009
Movements type – 521 (Goods rcvd w/o sales order)
Plant – TAPL
Storage location – HYD
Press enter key
Item Material Quty
1 FINISHO1 100

Documents display

Go to Goods receipts in menu bar → Display

Press enter key
Click on Accounting documents tab
Double click on Accounting documents
Come back wise

Creation of Sales Order (VA01)

Path: Sap easy access → Logistics → Sales and Distribution → Sales → Order → Create

Order type – OR
Sales organization – TASO
Distribution channel – DR
Division – ST
Press enter key
Sold to party – Customer account
PO Number – 0001 (any)
Reg delivery date – 02-04-2009
Delivery plant – TAPL
Payments terms – 0001
Item Material Order Qty
1 FINISH01 100
Press two times enter key
Select item 10
Click on Go to in Menu bar → Item → Condition
Check the values and Tax
Click on shipping tab
Check the shipping point
Note the sales order number 11800

Goods Deliver (VL0IN)

While goods delivery at the time entry will be

Increase decrease Stock account

To Inventory of finished goods

Path: Same as up to Order → Subsequent function→ Outbound delivery

Shipping point – TASP

Date – Current date
Order – 11800
Press enter key
Select 100
Click on Picking tab
Assign 100 in the Picked quantity column
Click on Post Goods issue tab
Note the delivery documents number – 80015001

Display of Documents

Now Go to Outbound delivery in Menu bar → Display

Outbound delivery – 80015001
Press enter key
Click on Documents flow field (F7)
Select Goods issue
Click on display documents tab
Click on Accounting Documents tab
Double click on Accounting Documents
Billing Documents (VF01)

After goods delivery at the time Billing the FI entry will be

Customer Account
To Sales Accounts

Path: Same

Documents
Delivery documents number – 80015001
Click on Save
Note the billing documents number – 90036105

Billing Documents update in FI

Go to VF02 for the change billing documents

Billing documents – 90036105
Click on flow field (Release to Ac)