Inter-company Sales

If one legal company delivers product to the customer, sourced from the plant, which belongs to another company code, then the scenario is termed as Inter-company sale Delivering company bills the ordering company.

This is called as Inter-company billing. Standard inter-company billing type is IV Let us take scenario as below: Customer – 300711 Sales area for creating sales order – 3000/10/00 Delivering plant – 1200 Material is R-1006 Supply Customer 300711 Plant 1200Sales org. 3000 Company code 3000 Company code 1000 Let us understand configuration behind

• Determination of Billing type IV
• Payer to which, supplying plant should bill.
• Sales area in which payer should be defined
• Pricing procedure for inter-company billing
• Posting of inter-company invoice in MM Instructions Menu path

: IMG → Enterprise structure → Assignment → Assign sales organization – distribution channel – plant Click Plant 1200 has to be assigned to sales organization 3000, as it is a delivering plant.

Configuring Pricing Control

This configuration setting enables creation of new pricing tables, which contain the fields used for price dependencies. Condition tables contain the fields, for the combination of which condition records are maintained.

It is recommended that system predefined condition tables are not modified; the following options are then available. 􀂃 Copy existing condition table and change it to new reqts. 􀂃 Create a new condition table. Number of table has to start between 501 and 999, if not specified system will automatically assign a sequential number.

IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Condition tables

Click Following pop-up is displayed

First the Field Catalog needs to be checked for the fields that are required in a condition table Click on and click on

The List of allowed fields by system in Pricing is displayed in this Field Catalog. New Fields can be added in this catalog which also require system modifications to get the values populated in these additional fields during sales document processing. Click and.

2. Click on and For explanation let’s create a table with following fields Sales Organization, Distribution Channel, Division, Sold-to Party and Material.

Table no to be created is specified in field ‘table’ and if it is to copied from existing table enter the table number in field ‘Copy from condition table’ and click on . Following screen is displayed

By Default and are check marked. If the condition records that are to be maintained in this table do not require validity or release status they can be unchecked. Enter the Description of table by clicking on icon , which will open an editor.

Next the Fields are to be selected from the Field Catalog, the whole list can be scrolled up or down by clicking on any field and using the ‘Page up’ & ‘Page down’ buttons on keyboard. First Search for ‘Sales Organization’ in Field Catalog, double click on the field when found. It will get transferred to Selected Fields as below. In a similar way select fields Distribution Channel, Division, Sold-to Party & Material in that order.

It is important to Check whether fields selected are the correct fields of table where data would be stored. To check this click on

Following fields are available: Field Name Field Description and Value Short text Displays the description of field selected Key This indicates which field is ‘Key’ field of table, i.e. for the combination of key fields there can be only a single condition record maintained. If some field is not key that can be unchecked here. Also all the key fields are at start of table there cannot be non-key fields between two key fields. Footer fld. Indicates which field appears on Fast entry screen while maintaining the condition record Text Field Determines if text of field appears on fast screen. Here ‘Description’ of Material would appear on fast screen Field Name Technical field name of field selected in table Data element Data element of field which has attributes for that field like data type, field length etc. Domain Domain defines the value range for data fields No of Characters The number of characters for field Data Type Data type of field like character, date etc. Click and.

Field attributes of each individual field can be checked by clicking on. On checking of all fields in table, next step is to generate the table. Click on. There will be a system prompt whether you want to generate the table click on ‘Yes’. Following pop-up is displayed

Following fields are maintained Field Name Field Description and Value Package Package is grouped related objects in ABAP workbench, it determines the transport layer. These are maintained by Technical Basis team and package created by them for storing Pricing condition tables needs to be taken and entered here. Person Responsible User name of person creating table, is usually copied. Click on to generate and save table in a transport. A log is displayed after table is created. Here table created is A956 Click and. 3. Click on to modify existing condition tables.

4. Click on to display created condition tables. Effect of Configuration Condition tables are created and ready to be assigned to be assigned to access sequence so as to have pricing condition records stored in them.

2.2 Define Access Sequences Background This configuration setting enables creation/modification of Access Sequence, which is a search strategy used by SAP to search for condition records. It is recommended that system predefined Access Sequence is not modified; the following options are then available. 􀂃 Copy existing access sequence and change it to new requirements. 􀂃 Create a new access sequence; key should start with ‘Z’ as it is reserved for user requirements. Instructions Follow Menu Path

: IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Access Sequences 1. Click Following pop-up is displayed

Click on and select. Click on.

Here the options explained in background are applicable. g. If existing Access Sequence is to be modified, choose from list and double click on to get into details h. For copying existing Access Sequence to new one select the access sequence to be copied and click on or F6. i. For creating a new Access Sequence click on Here we will follow option ‘a’ and select order type PR00 and click on. To search for correct Access sequence, click on and enter the key. Following screen is displayed

2. To add on new accesses click on . Depending on where access is to be maintained access no is selected Following Fields are maintained Field Name Field Description and Value AcNo. Indicates number of access within access sequence. Search is based on sequence of this number, here 10 is highest access no. Tab Condition table number to be entered here. Description Description of table number is displayed. Requirement Requirement for a particular access is maintained here. It’s an ABAP code. Example ‘3’ here checks for foreign currency document. Exclusive Controls whether the system stops searching for a record after the first successful access for a condition type within an access sequence.

3. Next Select each individual access and double click on No entries are to be made here, unless a particular field has to be changed here. This is important for field assignment of particular access. Click and. Effect of Configuration Access Sequence is created which has relevant search strategy to search for condition records for a condition type during pricing in sales documents.

2.3 Define Condition Types Background This configuration setting enables creation/modification of Condition Types, which represent price elements of business environments in system. It is recommended that system predefined Condition Types are not modified, the following options are then available. 􀂃 Copy existing Condition Types and change it to new requirements. 􀂃 Create a new Condition Type; key should start with ‘Z’ as it is reserved for user requirements.

Instructions Follow Menu Path: IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Condition Types 1. Click Following pop-up is displayed

Click on and select.

Here the options explained in background are applicable. a. If existing Condition Type is to be modified, choose from list and click on to get into details. b. For copying existing Condition Type to new one select the Condition Type to be copied and click on or F6.

c. For creating a new Condition Type click on Here we will follow option ‘a’ and select Condition Type ‘PR00’ and click on . To search for correct Condition Type click on and enter the key. Following screen is displayed

The screen continues and further controls are observed by scrolling. The controls are grouped in blocks and explanation provided is block-wise. Following fields are maintained: Field Name Field Description and Value Condit. Type 4 character key identifying Condition type Access seq. Access sequence defined earlier is assigned here. Cond. Class Preliminary structuring of condition types, Plus/minus Controls whether condition results in a

amount which is positive, negative or both amounts are possible. Calculat. Type Determines how system calculates prices, discounts in condition, like a fixed amount or percentage based on weight, volume etc. Many options are provided in system. Cond. Category Classification of conditions based on predefined categories like Freight, Cost etc. Rounding Rule Rule that specifies how system rounds off condition values during pricing. StrucCond. Used in BOM items for duplication or cumulation of conditions. Following fields are maintained:

Field Name Field Description and Value Group cond. Mark field if it’s a group condition type GrpCond. Routine ABAP routine that can be used to identify scale basis in case of group conditions RoundDiffComp On indicator being set, system compares the condition value at header level with the total of the condition values at item level. The difference is then added to the largest item Manual Entries Indicator which controls the priority within a condition type between a condition entered manually and a condition automatically determined by the system Header Condit. Mark this if Condition type is Header condition Item Condition Mark this if Condition type is Item condition Delete Indicates if condition can be deleted from document Amount/Percent Specifies if amount or percent can be changed in document for condition. Value Specifies if value of condition type can be changed in document. Qty relation Specifies if conversion factors can be changed.

Calculat. Type Specifies if calculation type of condition type can be changed in document. Following fields are maintained: Field Name Field Description and Value Valid from Proposed validity start date Valid to Proposed validity end date RefConType Condition types which can be used as reference so that records can be maintained only once. RefApplicatio Reference application from other applications Pricing Proc Predefined pricing procedure is entered here for allowing condition supplements Delete fr. DB Allows deletion of condition record from database Condition index Specifies whether system updates one or more condition index when maintaining records.

Condit. Update Limit values relevant for condition record. Scale Basis Determines how system interprets scale while calculating, eg Weight or Quantity scale. Check Value Indicates whether scale values are maintained in ascending or descending order Scale Type Validity of scale value is set here, like Base-scale or To-scale Scale formula Routine can be assigned here for calculation of scale Unit of meas Unit of measure used by system to determine scales, proposed while maintaining records. Following important fields are maintained: Field Name Field Description and Value Currency conv. Currency varies from document currency, set here. Accruals Amount posted as accruals for this condition

type Variant cond. Mark if condition is used in variant pricing Qty conversion Quantity conversion is allowed in condition Exclusion If system excludes discounts proposed in pricing Pricing date Default Pricing date in system Rel. Acc. Assig Controls account assignment for condition type Click and. 2. Click on and click . Here entries are maintained if upper or lower limits for condition types need to be maintained, especially for Discount condition types. Click on Following fields are maintained Field Name Field Description and Value CType Condition type to be entered here

Condition type Description of condition type gets copied. CalTy Calculation type, if percentage or fixed amount. Unit Unit of condition record Lower limit Enter lower limit if required for condition Upper limit Enter upper limit if required for condition. Click and. Effect of Configuration Condition Types for price elements are created to be used in pricing procedure and maintaining of condition records.

2.4 Condition Exclusion for Groups of Conditions Background In this configuration condition exclusion can be setup for pricing in a document item so as to have best condition record selected. Example: Condition exclusion can be setup for determining best price for customer and exclude other condition records maintained. This is one of special pricing functions provided in system Instructions Follow Menu Path: IMG → Sales and Distribution → Basic Functions → Pricing → Condition Exclusion → Condition Exclusion for Groups of Conditions 1. Click Following pop-up is displayed

Click on and click on . Exclusion Groups are defined here. For creating new click on . Maintain 4-character key for exclusion group and description. Click and.

2. Click on and click on Here the Condition types are assigned to condition group. Following Discount condition types are assigned to exclusion group ‘0001’. For maintaining new entries click on , enter the Exclusion Group and Condition Types. Click and. 3. Click on and click on Here select the Pricing procedure in which the exclusion needs to be setup.

Select the Pricing Procedure ‘RVAA01’ and double click on . Following fields are maintained

Field Name Field Description and Value SNo. Step Number is entered here for exclusion. Cpr Condition Exclusion procedure is maintained here, following options are predefined in system Select ‘A’ for determining best condition among condition types, for best price among condition records select ‘B’ and so on. Here we select ‘A’. ExGr1 Enter the Exclusion Group 1. Group 1 Description of exclusion group 1 ExGr2 Enter Exclusion Group 2 for cases where exclusion procedure C, D or F is used. Group 2 Description of exclusion group 1 Click and.

Define Sales Document Types

Define Sales Document Types

This configuration setting enables creation or modification of sales document type. Sales document type is an indicator which enables system to process different business transactions in different ways. Various document types are pre-configured in system and can be used for various scenarios. There are three options for configuring new sales document types: 􀂃 Change existing sales document type 􀂃 Copy existing sales document type and change it to new requirements. 􀂃 Create a new sales document type. Definition and configuration of sales document type can be divided in three parts

1. Definition of Sales document type itself (with key e.g. QT etc.)

2. Definition of additional sales functions (like number ranges etc.)

3. Configuration for general SD functions (like pricing etc.) We will study the configuration of SAP provided sales document type for standard order ‘OR’. Instructions

Follow Menu Path:

 IMG → Sales and Distribution → Sales → Sales Documents → Sales Document Header → Define Sales Document Type 

Click Here the three options explained in background are applicable. d. If existing Sales document type is to be modified, choose the document type from list and click on to get into details e. For copying existing sales document type to new one select the sales document type to be copied and click on or F2. f. For creating a new sales document type click on

Here we will follow option “a” and select order type OR and click on. To search for correct order type click on and enter the key. Following screen is displayed The controls are grouped in various blocks like Number Systems, General Control, Transaction flow etc. 2. Maintain the fields as explained below: The explanation is provided block wise

Field Name Field Description and Value Sales Document Type 4 character key for the sales document type. Description is next to it SD document categ. Classification of different types of documents in SD, used by system to determine how processing is to be carried out. Predefined following entries exist Indicator Sales document indicator for further classification if required. Sales document block Determines if sales order is blocked for creation or allows only automatic creation. Key fields are explained below:

Field Name Field Description and Value No Range int. assgnt No range to be used for sales

document numbers if assigned internally No Range ext. assg. No range to be used for sales

document numbers if assigned externally Item no. increment Increment of item no in sales

order like 10, 20 etc. Sub-item increment Increment of item no automatically by system Key fields are explained below: Field Name Field Description and Value Reference mandatory Control if reference is mandatory while creating sales document. Leave blank Check division Control on check if division differs at item & header level. Leave blank Probability Probability of customer confirming inquiry or quotation in sales order. Check Credit Limit Specifies if system runs credit check and behavior. Credit group Assignment of credit group defined in credit management

Output Application Normally V1 for sales Material entry type Control on material entry in sales order. Item division Check this if division is to be determined from material master record at item level Read Info record Check this if Customer material info records are to be read. Check purch order no. If Customer purchase order no is to be checked for duplication maintain ‘A’ Key fields explained below, rest are system copied. Field Name Field Description and Value Transaction group Grouping that controls certain characteristics of sales doc processing. Doc. pric. Procedure Key specifying pricing proc for sales document type. Input for pricing procedure determination Quotation messages Control to check if system should check for existing open quotations.

Outline agrmt messages Control to check if system should check for open agreements like contracts. Key fields explained below: Field Name Field Description and Value Delivery type Default delivery type for this sales document type Delivery block Default Delivery block for sales document Shipping conditions Default shipping condition for sales document type. Maintained if it is different from customer master record. Immediate delivery To be flag ‘X’ if immediate delivery is required after sales order is saved. Example - In Cash Sales and Rush order scenarios. Key fields explained below:

Field Name Field Description and Value Delivery rel. billing type Default billing type that system proposes while creating billing documents from delivery Order-related billing type Default billing type that system proposes while creating billing documents from order Inter-company billing type Default billing type that system proposes while creating billing documents for inter-company. Billing block To Default billing block in sales order like Credit memo etc. Billing plan type Billing plan type if used like Milestone or Periodic billing Paymt guarant. proc Procedure type for payment guarantee Paymt card plan type Payment plan type for payment cards Checking group Checking group for payment cards Key fields explained below: Field Name Field Description and Value Lead time in days No of days from current date for

proposal of requested delivery date of items. Propose deliv. Date Check box controls if current date is to be proposed as delivery date. Other controls like Scheduling agreement and Contract are relevant for only those sales document types and not explained here. Effect of Configuration Sales document type configured here would be used for creating sales order in specific scenario.