SAP SD (Sales and Distribution)

SAP SD (Sales and Distribution) Training TutorialsSAP SD ( Sales and Distribution ) is one of the important module of SAP systems and handles the processes of order to delivery activities. Sap SD manages all activities of pre-sales, receiving & managing sale orders, and schedules, delivering products to customers, billing to customers for products sold, handling transportation and distribution of shipments to customers. SAPSD module integrates with other modules such as Financial Accounting and Controlling (FICO), Material Management (MM), Production Planning (PP) and so on.

Organization Structure:-1. Define Company2. Define Company Code3. Creating Sales Organization4. Define Distribution Channels5. Defining Divisions6. Define business area7. Creating a Sales Areain SAP SD8. Define Shipping Point9. Maintain Sales Office10. Define Plant11. Maintain Storage locations12. Maintain Sales Group13. Define Sales Districts14. Define Regions About Company in SAP:- Company is the organizational unit for which individual financial statements can be drawn according to the relevant commercial law. A company can comprise of one or more company codes. A Company has local currencies in which its transactions are recorded.All company codes within a company must use the same transaction Chart of accounts and the same Fiscal Year.

Path to Define Company in SAP :- SAP IMG Path: SPRO >Implementation Guide for R/3 Customizing (IMG)> Enterprise Structure >Definition> Financial Accounting > Define CompanyTransaction code to Define Company in SAP :- OX15Steps for creation of Company: Step 1 :- Enter Transaction Code SPRO in the commend field and press enter on the Keyboard

Step 2 :- Next Customizing execute project screen select SAP Reference IMG

Step 3 :- After Selecting SAP Reference IMG, a new screen IMG Path will be displayed. Select Define company execute icon for creating a company

Next Screen will be displayed after selecting the define company execute icon

Step 4:- Now Select New entries icon and enter the company details

The following details are to be entered for creating a new company1. Enter 6 character alphanumeric code key that represents the group of company2. Enter name of your company3. In the Detailed information update the address Street name, PO Box#, Postal code, City.4. Enter Country Code of the company5. Enter language key6. Enter local currency for the company (also known as Company code currency)7. Click on Save icon or CTRL+S after updating the required informationThus new Company ADARSH is created in SAP.Define Company CodeAbout Company Code :- Company Code in SAP is the smallest organizational unit of Financial Accounting for which you draw individual financial statements like Balance Sheet and Profit & Loss Account for purpose of external reporting. The Creation of company code in sap is mandatoryPATH :- IMG Reference > Enterprise Structure >Definition> Financial Accounting > Edit, Copy, Delete Company CodeTransaction code to Define company Code :- OX02Steps to Define Company Code: -Step 1 :- Enter Transaction Code SPRO in the commend field and press enter

Steps 2 :- In customizing execute project screen select SAP Reference IMG

Step 3 :- In next screen selectEdit, Copy, Delete check Company Code

Step 4 :- The below screen displays after selectingEdit, Copy, Delete Company Code ( Define Company Code )

we can create company code by selecting above two options. By selecting first option copy, Delete, company code all the configuration and tables get copied automatically along with assignments.Here we are creating company code manually configure all the assignments by selecting second option Edit Company Code Data . Double click on Edit Company Code Data

Step 5 :- Click on New Entries

and update the following details

1. Update newCompany code keyAD062. Give the company name Adarsh Technologies for identifying the company code key3. In Additional Data update the details of City, Country, local Currency of company, Language.Click on Address and Update the following fields

After updating Address enter Click on Save icon

Thus the company code AD06 is created in SAPCreating sales organaisation::::::::::

Configuration of Sales Organization in SAP SDIMG Menu Path :-SPRO > Implementation Guide -> Enterprise Structure > Definition > Sales and Distribution -> Define, copy, delete, check Sales organization > Define Sales organizationT Code to Define Sales Organisation :- OVX5Steps to Create New Sales Organization in SAPStep 1 :-Enter Transaction Code SPRO in the Command field and press Enter

Step 2 :- In next screen click on SAP Reference IMG

Step 3 :- In next screen follow the menu path for Define sales organisation

Step 4 :-A window will pop up and Double click on Define sales Organization

Step 5 :- In next screen click on New Entries

Step 6 :- Update the sales organisation key and name of the sales organization

Step 7 :- Press enter and click on save icon, another window will pop up for updating the address. Update the sales organization address.

Step 8 :- After updating all the required address information click on save icon

Thus Sales Organization is successfully configured in SAP SDSteps to Create Distribution ChannelIMG Menu Path :-SPRO > Customizing Implementation Guide > Enterprise Structure > Definition > Sales and Distribution > Define, copy, delete, check Distribution channelT Code for DefineDistribution channel :- OVXIStep 1 :- Enter T Code SPRO in the Command field and press enter from keyboard

Step 2 :-Click on SAP Reference IMG

Step 3 :-Follow the IMG menu path as per below screen shot for define distribution channel

Step 4 :-Click onDefine, copy, delete, check Distribution channel, a pop up window will be displayed and then selectDistribution channel

Step 5 :- In next screen list of distribution channel will be displayed, click on new entries to create new distribution channel

Step 6 :-Enter Distribution channel key in the Distr. Channel field and give the name of the distribution channel

Step 7 :- Click on save icon to save the configuration settings

Thus distribution channel is successfully created in SAP SDSteps to Create Division in SAP:-IMG Menu Path :-SPRO > SAP Customizing Implementation Guide > Enterprise Structure > Definition > Logistics-General > Define, copy,delete, check divisionT Code to Define Division in SAP :- OVXBStep 1 :- Enter Transaction Code SPRO in the command field and press enter from the key board

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the IMG menu path to define new division in SAP and click on executeDefine copy, delete, check division

Step 4 :- In next screen a popup window will be displayed, click on Define Division

Step 5:- Click on New entries to create divisions

Step 5 :- Enter the division key in the division field and update division name

Step 6 :- Click on Save icon to save the inputs

Thus New Division is successfully configured in SAPDefine Business Area in SAPDefinition of Business area :-Business areais a separate area of operations or responsibilities of organizational units of financial accounting that is used for internal and external reporting . Different divisions of each business with in a legal entity are created as Business areas for reporting of each operational areas. So Financial statements can be created for each business area and this financial statements can be used for internal reporting purpose.Business areas are not assigned to any company codes.Transaction Code for Creation of Business Area in SAP :- OX03Steps for the Creation of New Business Areas in SAP :-Step 1 :- Enter transaction code SPRO in the commend field

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the Business areas

Step 4 :- After Selecting Define Business Area, Select new entries to configure new Business areas

Step 5 :- Enter the 4 digit code in the business area field and enter the name of business areas in the description field and save the settings.

Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICODefine Business Area in SAPDefinition of Business area :-Business areais a separate area of operations or responsibilities of organizational units of financial accounting that is used for internal and external reporting . Different divisions of each business with in a legal entity are created as Business areas for reporting of each operational areas. So Financial statements can be created for each business area and this financial statements can be used for internal reporting purpose.Business areas are not assigned to any company codes.Transaction Code for Creation of Business Area in SAP :- OX03Steps for the Creation of New Business Areas in SAP :-Step 1 :- Enter transaction code SPRO in the commend field

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the Business areas

Step 4 :- After Selecting Define Business Area, Select new entries to configure new Business areas

Step 5 :- Enter the 4 digit code in the business area field and enter the name of business areas in the description field and save the settings.

Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICOSteps to Create Sales Area in SAP :- IMG Menu path :-SPRO > SAP Customizing Implementation Guide > Enterprise Structure > Assignment > Sales and Distribution > Set up Sales AreaStep 1 :-Enter Transaction Code SPRO in the Command Field

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the Menu Path and click on Set up Sales Area execute Icon

Step 4 :- Click on New entries for Assignment between Sales Organisation, Distribution Channel and Division

Step 5 :- Enter the following details and Enter1. Update Sales Orgnisation key in the SOrg. field2. Update the distribution channel key in the Dchl field and3. Update division key in the DV field

Step 6 :- Click on Save Icon

About Shipping Point :-Shipping Point is an organizational element where the shipping activities are executed. We can assign shipping point to more than one plant.Step by Step defining shipping point in SAP :-Transaction Code to create shipping point in SAP :- OVXDIMG Menu Path :-SAP Customizing Implementation Guide > Enterprise Structure > Definition > Logistic Execution > Define, Copy, Delete, check Shipping Point

Step 1 :- Enter Transaction code SPRO in the command field and press enter from key board

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the Menu path as per below screen shot and click onDefine, Copy, Delete, check Shipping Point

Step 4 :- Shipping point can be created by two methods either copying the exiting shipping point for creating new one, here we are creating new shipping point. Double click on define shipping point

Step 5 :- In next screen a list of existing shipping point will be displayed, click on New entries for defining new shipping point

Step 6 :- Next update the required data for the defining shipping point-Shipping Point :- Enter new shipping point key and update the description of shipping pointTimes :- Update the Factory calender and working timesDetermine Time :- Update the determine Load time, determine pick and pack time and rounding working days

After updating the required data press Enter from Key Board, a pop up window for address will be opened

Step 7 :- After Updating the address for the shipping point, click on save icon

Thus Shipping Point is successfully configured in SAP .How to Maintain Sales Office in SAP SD | Sales office SAP

IMG Menu Path :-SAP Implementation Guide (IMG) > Enterprise Structure > Definition > Sales and Distribution > Maintain Sales OfficeStep 1 :- Enter Transaction Code SPRO in the SAP Command field and press enter

Step 2 :- Click on SAP Reference IMG

Step 3 :-Follow the IMG menu path for maintain sales office in SAP

Step 4 :- Click on New entries to create new sales office

Step 5:- Enter Sales office Key and Update sales office description ,

After updating the data, press enter , a new window will pop upfor address entry,

Update the address information and then save the entries

Thus sales office is successfully configured in SAP SDHow to create Plant in SAP MM | Define Plant

Steps to Define Plant :-IMG Menu Path :-SPRO > SAP Customizing Implementation Guide (IMG) > Enterprise Structure > Definition > Logistics General >Define copy, delete, check plantTransaction Code to Define Plant :- OX10Step 1 :- Enter Transaction Code SPRO in the command field and press enter

Step 2 :- Click on SAP Reference IMG

Step 3 :- Follow the Menu Path as per below screen shot

Step 4 :- Click on Define Plant

Step 5 :- Click on New Entries

Step 6 :- Enter new plant code and update the name of the Plant and press enter

Step 7 :- Update the address of the plant and press enter

Step 8 :- After updating all mandatory fields click on save icon

Thus Plant was successfully configured in SAPHow to Create Storage Location in SAP MM

Transaction code :- OX09IMG Menu Path :- SPRO>SAP Customizing Implementation Guide>Enterprise Structure Definition > Material Management > Maintain storage LocationStep 1 :-Enter Transaction Code SPRO in the command field and press enter

Step 2 : -Click on SAP Reference IMG

Step 3 :- Follow the menu path as per below screen shot and click on maintain storage location

Step 4 :- Enter the Plant key where the storage location is to be maintained and press enter

Step 5 :- Click on new entries for creation new storage location

Step 6 :- Enter Key in Sloc and description of storage location

Step 7 :- Select storage locations and double click on address of storage locations

Step 8 :- Afterdouble click on address of storage locations, click on new entries and give 1 in NO field.

Step 9 :- Update the address of the storage locations

After updating address click on save icon.Thus New storage locations are configuredHow to Create Sales Group in SAP | Sales Group SAP

IMG Menu Path :-SPRO > SAP Implementation Guide (IMG) > Enterprise Structure > Definition > Sales and Distribution > Maintain Sales GroupStep 1 :- Enter T Code SPRO in SAP Command Field and press enter from Key board

Step 2 :- In next screen Click on SAP Reference IMG

Step 3 :- Follow the IMG Menu Path

Step 4 :- Next click on New entries to maintain new sales group

Step 5 :- In Next screen update the required data Sales Group :- Enter 3 digits key of Sales Group Description :- Update the description of the sales group

Step 6 :- After maintaining Sales group and description click on save Icon

Thus sales groups are successfully configured in SAP SDDefine sales districts for customers

SAP IMG Path: SPRO > IMG > Sales and Distribution > Master data > Business Partners > Customer > Sales > Define Sales Districts for CustomersTransaction Code: OVR0On the change view customers :sales districts: overview screen, select new entries

On the new entries: overview of added entries screen, enter the following fields. Enter new sales district key in sales district field Update the name of sales district

Choose save button to save the data. Successfully you have define sales districts in SAPDefine Regions in SAP

SAP IMG Path: SPRO > SAP Customizing Implementation Guide (IMG) > SAP NetWeaver > General settings > Set Countries > Insert Regions

Click on Insert Regions and on the change view Regions: Overview screen select New entries

On the New entries: Overview of added entries, update the following fields Update two digits country key Enter two digits region key Update the description of the region

After updating the information click on save button to save the dataAssigning Organizational Units1. Assign company code to company2. Assign Sales Organization to Company Code3. AssignDistribution Channels to Sales Organization4. Assign Divisions to Sales-Organizations5. Assign sales office to sales area6. Assign Sales Group to sales office7. Assign Plant to Company Code8. Assign sales organization /distribution channel to plant9. Assign shipping point to plant10. How to Assign Company Code to Company in SAP

Assign Company Code to CompanyMenu Path:-SPRO > IMG Reference > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code To CompanyTransaction Code :- OX16The following are the steps to Assign the Company Code to Company in SAP FICOStep 1 :-Enter the T-Code SPRO in the commend field

Step 2 :- ClickSAP Reference IMG

Step 3 :- Follow the Path as per below screen shot

Step 4 :- Click Position

Update company code for which you wants to assign and Enter

Step 5 :- Update Company ID in Company field and click on save icon

Thus company code AD06 was assigned to Company ADARSH

ow to Assign Sales Organization to Company Code

The following tutorial guides you how to assign sales organization to company code step by step with screen shotsIMG Menu Path :-SPRO > IMG > Enterprise structure > Assignment > Sales and Distribution >assign sales org to company code

Select position and update sales organization code and press enter

Update company code in the CoCd field and press enter

Click on save icon to save the configured data. Thus sales organization is successfully assigned to company code.Assign Distribution Channel to Sales Organization

The following tutorial guides you how toassign distribution to sales organization in SAPIMG Path :- SPRO > IMG > Enterprise structure > Assignment > Sales and distribution >Assign distribution Channel to sales organizationClick on new entries toAssign the distribution channel to sales organisation

Enter Sales organization key anddistribution Channel, press enter key to validate the data by system.

Click on save icon to save the configured data. Successfully assigneddistribution Channel to sales organisationAssign Division to Sales Organization SAP

IMG menu path :- SPRO > SAP Implementation guide > Enterprise structure > Assignment > Sales and Distribution >Assign Division to Sales Org

Click on new entries to assign divisions to sales organizations.

Update sales organization code in the SOrg. field and Division code in the Dv field, after updating press enter

After assigning all the divisions to the sales organization, click on save icon to save the configured data.Assign sales office to sales area in SAP

IMG menu Path :-SPRO > SAP Implementation guide > Enterprise structure > Assignment > Sales and Distribution > Assign sales office tosales area

Click on New entries to assign all sales offices to sales area.

In next new entries screen, update the following data.SOrg :- Update the Sales Organization codeDchl :- Update the distribution channel codeDV :- Update the division codeSOff :- Update the sales office code

After updating all the information click on save icon to save the configured data.Thus Sales office is successfully assign to sales areaAssign sales group to sales office in SAP

IMG menu Path :-SPRO > SAP Implementation guide > Enterprise structure > Assignment > Sales and Distribution >Assign sales group to salesoffice

Select New Entries for assigning the sales group to sales office

In next screen update the following data,1. Update sales office code in the SOff field2. Update the Sales group code in the SGrp field

After updating the data, select save icon or (Ctrl+S) to save the configured data.Thus Sales groups are successfully assigned to sales office.

Assign Plant to Company Code | SAP OX18

MG Menu Path :-SPRO > SAP Customizing Implementation Guide (IMG) > Enterprise Structure > Assignment > Logistics General >Assign Plant to Company CodeStep 1 :-Enter Transaction Code SPRO in the command field and press enter

Step 2 :-Click on SAP Reference IMG

Step 3 :-Follow the Menu Path as per below screen shot

Step 4 :- Click on New entries

Step 5 :- Update Company code in cocd field,and update plant code in plnt field and press enter

Step 6 :- Click on save icon

Thus Plant is successfully assigned to Company code.Assign sales organization /distribution channel to plant

SAP IMG Path: SPRO > IMG > Enterprise Structure > Assignment > Sales & Distribution > Assign Sales organization/Distribution channel to Plant

On the change view assignment sales organization /distribution channel -plan, select new entries

On new entries: overview of added entries screen, enter the following fields. Enter sales organization key in sales org field Enter distribution channel in the dchcust/mt field Enter plant code in the plant field

Click on save icon to save the data. Successfully you have assigned sales organization/distribution channel to plant.How to assign shipping point to plant

Assign shipping point to plantThe following tutorial guides how to assign of shipping point to plant.

Access the transaction by using the following navigation option.SAP IMG Path: SPRO >> IMG >> Enterprise Structure >> Assignment >> Logistic Execution >> Assign Shipping Point to Plant

Select the find button to search for plant

Enter plant in the find field and select plant from the list

Click on assign button and select shipping point from the list. Press enter

Click on save button to the data. Successfully you have assigned shipping point to plant.

Successfully shipping point is assigned to a plant.

Pricing1. Define Condition tables2. Define Condition Types3. Define Access SequenceDefine Condition Tables for pricing in SAPSAP IMG Path: -SPRO >> SAP Reference IMG (F5) >> Sales and Distribution >> Basic Functions >> Pricing >> Pricing Control >> Define Condition TablesTransaction Code: V/03

Thefollowing are the standard condition tables configured in SAP.TabShort Description

304Material with release status

305Customer/material with release status

359Plant/Matl group

367Country/Plant/Region/Material

368Country/PlntRegion/Region/TaxCl1Cust/TaxCl.Mat

In next screen, choose create condition table to create new tables

Update the following fields Enter condition table in the table field Enter existing condition table to copy from condition

After copying the data,modifying the table as per your business requirements.Define Condition Type for pricing in SAP

Define Condition Type for pricingSAP IMG Path: SPRO > SAP Reference IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define Condition TypesTransaction code: V/06On choose activity screen, select Maintain condition type

You can define new condition type by copying existing condition types or you can create new entries by selecting new entriesClick on position button and choose condition type from the position button and click on copy as icon

Define Condition type as per Business requirement. Rename the condition type

1. Control data 1: Under condition data 1, enter the following data Condition class: (e.g. A- Discount or surcharge, B- Prices, E- Expense reimbursement, D- Taxes etc.) Condition type: (e.g. A- Percentage, B- Fixed amount, C- quantity, G- Formula etc) Condition category: (e.g. tax, basic price, freight, cost etc) Rounding rule: (example. commercial, round down, round up) Structure condition: (e.g. condition to be duplicated, cumulation condition) Plus/minus: (e.g. positive, negative or both)

2. Group condition: In group condition section enter the following data. Group condition: (Group cond indicates the system calculates the basis for the value more than one item in a document) RoundDiffComp: (The system controls the rounding difference comparison) Group condition routine: (Specify the routine to the group condition type)

Changes which can be made section:

Master data section:

Scales section

Control data 2 section:

After maintaining all the required data, click on save icon to save the data.Define Access Sequence in SAP

he following tutorials guides how to define access sequence in SAP step by step.Step 1: Access the transaction by using one of the following navigation methodSAP IMG Path: SPRO > SAP Reference IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define Access Sequences > Maintain Access SequencesTransaction code: V/07

On choose activity screen double click on Maintain access sequences

On change view access sequence overview screen, click on new entries

Enter access sequence and description

Double click on access, select new entries and enter table no, access number and enter.

Click on field and maintain mandatory fields

Click on save button to save the configured data.SALES1. Define Sales Document Typesin SAP SD2. Define number range for sales document types3. Define item category4. Assign Item Category5. Define Billing TypesHow to Define Sales Document Types in SAP

The Sales Order is an important and essential element in SD related activities. In the business scenario all theDeliveries and billing can be done with reference to a sales document only.SAP system providesdifferent types of sales document1. Credit Memo Request2. Debit Memo request3. Standard Order4. Returns etc.Configuration steps :-IMG Menu Path :- SPRO > IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Document TypeTransaction code :- VOV8Enter T code VOV8 in the sap command field and press enter

click on New Entries to define sales document types

Update mandatory fields

After entering all the required fields, click on save icon to save the configured data.Define number ranges for sales document types in SAP

Define number ranges for sales document typesThe following tutorial guides you how to define number ranges for sales document types in SAP SD step by step with screen shotsIMG Menu Path : SPRO >> IMG >>Sales and Distribution >> Sales >> Sales Documents >> Sales Document Header >> Define Number Ranges Sales DocumentsTransaction code :- VN01Enter T code VN01 in the sap command field and press enter

Select change interval to maintain the number range for document types

In next screen select Insert Interval

Update the following data :-NO : Update the document No for Adocument type, no should be same where you updated in document typesFrom Number : Enter Starting number for the document typeTo Number : Enter up to number for the document typeCurrent Number : current number 0 by defaultEXT : check this option if you want maintain the document number manually

After maintaining the number ranges for sales document types,click on save icon to save the configured data.

Define Sales Document Item Category

Configuration guide to define documentitem category in SAP SD .SAP R/3 IMG Menu Path : -Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item CategoriesTransaction code : VOV7

Step 1 : - Click on New Entries button to create new item category

Step 2 :- Update the following data1. Enter Item category key and description of item category2. Update the Business data (Completion rule, Billing Relevance, Special stock, Pricing, Sched.Line Allowed, Determine cost etc.)3. Select appropriate general control (Autom.batch determ, Rounding permited, Order qty =1)4. Transaction flow (Screen seq.Grp)5. Bill of Material/Configuration (config. strategy, Mat. variant action, variant matching, manual alternative etc.)6. Value contract ( Value contract matl, contract realese ctrl)7. Service management8. Control of resource related billing and creation of quotations

Assign Item CategoryThe following tutorial guides how to Assign Item Category in SAP step by step.Step 1: - Access the transaction by using following navigation optionSAP IMG Path: SPRO > SAP Reference IMG (F5)> Sales and Distribution > Sales > Sales Documents > sales document item category > Assign Item CategoryStep 2: On the change view item category assignment overview screen, click on new entries

Step 3: - Enter the mandatory fields such as sales document type, item category, item category group, Manual item category.. etc.

Click on save icon to save the configured dataClick on save icon to save the configured data.How to Define Billing Document Types SAP

The following configuration guides you how to define billing document types in SAP SD step by step.SAP R/3 IMG Path : IMG >Sales and Distribution > Billing > Billing Documents > Define Billing TypesTransaction Code : VOFA

Step 1 : -Enter transaction code VOFA in the SAP command field and press enterClick on Define Billing Types

You can define new billing type by copying existing billing type or definingnew billing type by selecting New entries buttonStep 2 :- select New entries

Update all the required data as per business requirements Billing types, Billng description, Number systems, SD document category, cancel billing type, Account assignments/pricing,

After updating all the required data, choose save icon to save the configured dataHow to Define Billing Document Types SAP

The following configuration guides you how to define billing document types in SAP SD step by step.SAP R/3 IMG Path : IMG >Sales and Distribution > Billing > Billing Documents > Define Billing TypesTransaction Code : VOFA

Step 1 : -Enter transaction code VOFA in the SAP command field and press enterClick on Define Billing Types

You can define new billing type by copying existing billing type or definingnew billing type by selecting New entries buttonStep 2 :- select New entries

Update all the required data as per business requirements Billing types, Billng description, Number systems, SD document category, cancel billing type, Account assignments/pricing,

After updating all the required data, choose save icon to save the configured dataTax Configuration1. Define Procedure2. Define Condition types3. Assign Country to Calculation Procedure4. Specify Structure for Tax jurisdiction code5. Define Tax Codes6. Assign Tax Codes for Non-Taxable TransactionsTAX Check Calculation Procedure SAP

Check Calculation Procedure SAPThe following tutorials guides you how to check calculation procedure in SAP step by stepIMG Path :-SPRO > IMG > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings >Check Calculation ProcedureThe standard system comes with two tax calculation procedures. TAXINN Condition Based TAXINJ Formula BasedTAXINN :-TAXINN supports only condition based excise determinationTAXINJ :-TAXINJsupport the condition based and as well as formula based excise determinationThe difference between TAXINN andTAXINJprocedure is, TAXINN is a condition based and we have to maintain condition records for each condition typeand TAXINJ is a formula based for which we maintain a tax code by using FTXPTax calculation procedure configuration process :- Tax procedure can be defined by coping existing procedure or by defining new entriesSelect Define procedure

Select TAXINJ and click on copy as icon,Update your new tax procedure key and press enterThen select copy all , all the entries fromTAXINJ copied to new tax procedure TAXADE

Select Tax procedure and double click on control data

Next control data overview screen , check all condition type, add new conditional as per company requirement

Click on save icon to save the configured data. Successfully you defined new procedureCondition types for TaxesStandard SAP provides you condition types which are defined in the SAP System. You can create new customized condition types as per your business requirements.SAP IMG Path: -SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure > Define Condition typesTransaction Code: OBYZStep 1: Click on condition type

Next change view condition: condition types overview screen, click on new entries to define new condition types

Step 2: Enter the following fields Maintain the condition class Maintain the calculation type Maintain access sequence for the tax condition type

Select the condition category Select the group condition if it is applicable Update the fields Changes which can be made

After maintain the data, click on save icon to save the configured data. Successfully you defined new condition types for taxes.Similarly create new condition types for CST, VAT, Service taxes, Excise duties etc. After creating new condition types, assign to tax procedure.

click on define procedures and in next screen select tax procedure and double click on control data.

Choose New entries and update the following fields .

1. Enter step number

2. Enter condition type key

3. Enter the from number (tax to be calculate from step#)

4. Select account key( input tax, output tax etc.)

Choose save icon to save the configured data.

How to Assign Country to Calculation Procedure

IMG Path :-SPRO > IMG > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Assign Country to Calculation ProcedureTransaction code :- OBBGAfter definingCalculation Procedure, next step assigning country to calculation procedure>> Select position and update country key

Update tax procedure key in the procedure field and press enter

Click on the save icon to save the data, successfully country assigned to calculationSpecify Structure for Tax jurisdiction code

SAP IMG Path: SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial Accounting global settings > Tax on sales/Purchase > Basic setting > Specify structure for tax jurisdiction codeTransaction Code: OBCO

Update the following fields1. Enter the name of the tax jurisdiction code structure2. Update the description oftax jurisdiction code structure3. Enter the length of first level, second level, third level and fourth level of hierarchy within your tax jurisdiction code structure.4. Set the Tax ln indicator to determine taxes on a line by line.

Click on save icon icon to save the configured data How to Create tax codes in SAP FTXP

SAP IMG Path: SPRO > SAP ReferenceIMG (F5) > Financial Accounting > Financial Accounting Global Settings > Tax on sales/purchase > Calculation > Define tax codes for sales and purchasesTransaction Code: FTXP

Step 1: A pop up screen will be open asking for country key that you are configuring for. Enter country key and press enter to continue

Step 2: Enter new tax code in the tax code field and enter

Step 3: Update the following data.1. Update the description of tax code2. Enter tax type i.eV is for Input Tax and A is for output tax

Step 4: Enter tax rate in the tax.percent.rate field

Choose save icon to save the data. A message will be displayed as Tax code was createdAssign Tax Codes for Non-Taxable Transactions

SAP IMG Path :- SAP Reference IMG (F5) > Financial Accounting > Financial Accounting Global Settings > Tax on sales/purchase > Postings > Assign tax codes for non taxable transactions.Transaction Code: OBCL

Select position button and enter your company code

UpdateInput tax (V0 0% input tax) and output (A0 0% Output tax) indicatorfor non-taxable transactions.

Choose save icon to save the data. Successfully you have assigned tax codes for non-taxable transactions in SAP.Customer Master Data1. Create Customer Account Groups2. Create Number Ranges for Customer Accounts3. Assign Number Ranges to Customer Account groups4. Define Tolerances Group for Customer5. Partner determination procedure6. Customer Payment Terms7. Create Customer Master Record8. Customer interest calculation configuration9. Dunning procedure for customersHow to Create Customer Account Groups in SAPLet configure the below customer account groupsGroupName

A001Domestic Customers

A002Export Customers

A003One time Customers

Steps to create customer account group :-IMG Menu Path :-IMG >Finance Accounting > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparation for creating customer master data >Define Account Groups with screen layout (Customer)Transaction Code :- OBD2Step 1 :- Enter Transaction code SPRO in the SAP command field and press enter

Step 2 :- Select SAP Reference IMG

Step 3 :- Follow IMG Menu Path and select

Step 4 :- Select New entries to create new customer account group

Step 5 :- Update the following data.Account Group :- Enter four digits customer Account group codeDescription :- Enter the name of customer account group.

Select Company code data under field status and select Account management under group,

Select Reconciliation account as required entry

Step 6 :- Select Save Icon to save the configured settings

Similarly create customer account groups for A002, A003.Thus customer account groups are successfully configured in SAPHow to Create Number Ranges for Customer Accounts

IMG Menu Path :- IMG >Finance Accounting > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparation for creating customer master data >Create Number Ranges for Customer AccountsTransaction Code :- XDN1

Step 1 :- Enter Transaction code SPRO in the SAP command field and press enter from Key board.

Step 2 :- Select SAP Refernce IMG

Step 3 :- Follow the IMG Menu Path

Step 4 :- Select Change interval for creating number ranges for customer accounts

Step 5 :- Select Insert Interval

Step 6 :- Update the following information and Enter1. NO :- Enter NO that you want to identify the Customer accounts number range2. From Number :- Enter from number of Customer number range3. To number :- Enter to number of Customer number range4 .Ext :- Select EXT box if you want External numbering

Step 7 :-Select Save and ignore the warning message press enter.

Assign Number Ranges to Customer Account Groups

Steps forAssign Number Ranges to Customer Account GroupsIMG Menu path :-Implementation Guide for Customizing (IMG) -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Customer Accounts -> Master Data -> Assign Number Ranges to Customer Account Groups

Step 1 :-Enter transaction Code SPRO in the SAP command field and press enter

Step 2:-Select SAP Reference IMG

Step 3 :-Follow the IMG menu path

Step 4:-Select Position

update Customer account group that you to assign number ranges and press enter

Step 6 :- Click on save icon to save configured setting

Thus Number range is successfully assigned to Customerr account groupsHow to Define Tolerance group for vendors /Customers

Importance of tolerance group : The tolerance group is very important to define in SAP system to facilitate dealing with the differences in paymentSAP R/3 IMG Menu Path : - IMG > Financial accounting > Accounts receivable and accounts payable > Business transactions > Outgoing payments > Manual outgoing payments > Define Tolerances (Vendors)IMG > Financial accounting > Accounts receivable and accounts payable > Business transactions > incoming payments > Manual incoming payments > Define Tolerances (Customer)Transaction Code : OBA3Enter transaction code OBA3 in the SAP command field and press enter

Click on New Entries to define tolerance group for customers and vendors.

Update following data1. Company code : Enter your company code2. Tolerance group: Keep blank tolerance group field and update the description of tolerance3. Permitted Payment differences: Enter amount and percent for gain and loss i.e 100 inr or 5% whichever is lower.

Click on save icon to save the configured data. You have successfully maintain tolerance group for vendors and customers.Define partner determination procedure sap

SAP IMG Path: SPRO > SAP Reference IMG > Sales and Distribution > Basic Functions > Partner Determination > Setup Partner Determination

On choose activity screen, click on Setup partner determination for Customer Master

On change view partner determination procedures: overview screen, select new entries

Select partner functions

On change view partner functions: overview, click on new entries

Update the following information Enter function name and name of partner function Enter partner function type Check unique field indicator if the selected partner function is used only once or it cant have the multiple partners of that function in the customer master data.

Click save button to save the data. Select Account group and click on new entries

Update the partner function and account group and press enter

Select Partner Determination Procedure and go to new entries and define partner determination procedure

Select defined partner determination procedure and click partner function in procedure

In next screen assign the partner function to partner determination procedures

Click on save icon to save the configured data.Customer Payment TermsMaintain terms of payment SAP

Maintain terms of paymentThe following tutorial guides you how to Maintain terms of payment in SAP. We are creating payment term key CP03 which is applicable for both customers and vendors.Payment terms: If the payment is made with in 14 days 5% discount, or with in 20 days 2% discount, net due 30 days.SAP IMG Path: -SPRO >SAP Reference IMG (F5) > Financial accounting > Accounts receivable and accounts payable > Business transactions > Incoming invoices / Credit memos >> Maintain terms of paymentTransaction code: OBB8Step 1: - Yo can get the payment term configuration screen by IMG path or by entering t-code OBB8Click on New entries to create new payment terms

Step 2: In new entries screen, enter the following fields1. Payment terms: Enter four digits payment term key.2. Sales text: Enter a short description of payment term key and text limit is 30 characters.3. Own explanation: This field is used to give a detail explanation of payment term key. It will be override the explanation that is automatically generated by the system.4. Customer: Select this option if the payment term to be used for Customer accounts (accounts receivable).5. Vendor:Select this option if the payment term to be used for Vendor accounts (accounts receivable).6. Block key: If Select appropriate block key to block certain activities like payment block, payment clearing etc.7. Select appropriate base line date calculation option from the list.8. Percentage: Enter the discount percentage rate.9. No of Days: Enter the no of days from base line date for which the discount percentage rate is valid.10. Fixed rate: If you dont want to use base line date, enter the days of month that the discount ends.11. Explanation: Detailed explanation automatically generated by the system

Select save button to save the configured data. Successfully we have maintained terms of payment for vendors and customers.Create Customer master data by XD01

Create Customer master dataCustomer master data can be created by using thefollowing navigation options in SAP. You can create customer master data by using the reference customer data or creating new customer account.Customers are business partners whom the organization does sales related transactions.SAP R/3 Path: -SAP Menu > Logistics > Sales and Distribution (SD) > Master Data > Business Partner > Customer > CompleteTransaction Code: -XD01

Step 1: - In next screen,Create Sales Order update the following fields. Select customer account group from the list Enter your company codekey Enter your sales organization, distribution channel, division key Update reference fields if you want to create customer master date by reference

Step 2: - Select address tab and update the following information Select appropriate title (Company, Dr, Ms, Mr) Enter customer name Enter full address of customer Update transport zone field

Step 3: Select payment transaction tab and update customer bank details

Step 4: -Select company code data button and updateReconciliation account and sort key.

Step 5:- Select Sales area data (Ctrl+F3) and update the following fields Go to Shipping Tab and updateDelivery priority,Delivering plant Go to Billing documents tab and updateIncoterms,Terms of payments,Acct assgmt group,Tax classification

After updating mandatory fields as per your business requirements, click on save button to save the configured customer master data.

SAP Interest Calculation Configuration

Interest calculation configuration can be done by two methods i.e Interest calculation on account balances and Interest calculation on areas.Interest calculation configuration stepsStep 1: Define interest calculation procedureStep 2: Prepare account balance interest calculationStep 3: Define reference interest ratesStep 4: Define Time based termsStep 5: Enter interest valuesStep 6: Create G/L AccountsStep 7: Prepare G/L account balances interest calculation configuration procedureThe following steps describe the calculation of interest.Step 1: Define interest calculation procedureSAP IMG Path: -SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >BusinessTransactions > Interest Calculation > Interest Calculation Global Settings > Define InterestCalculation TypesTransaction Code: OB46Click on new entries and update the following entries

1. Enter your interest indicator in the Int ID field2. Enter description of your interest indicator3. Select interest calculation type .i.e Balance interest calculation type or item interest calculation type

Click on save icon to save the configured data.Step 2: Prepare account balance interest calculationIMG Path: -SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >BusinessTransactions > Interest Calculation > Interest Calculation Global Settings > Prepare AccountBalance Interest CalculationTransaction code: OBAAClick on new entries and update the following entries

Enter your interest calculation indicator Update the period determination i.e interest calculation frequency and settlement day Select appropriate calender type (B- 30/360, G 28,,31/365) Select output control for printing form and terms of payment for posting

Step 3: Define reference interest ratesPath: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >BusinessTransactions > Interest Calculation > Interest Calculation > Define Reference Interest RatesTransaction Code: OBACClick on new entries and maintain the following entries

Enter your reference interest rate key, long text, Description, date from, valid currency of ref.int. rate.

Click n save icon to save the data.Step 4: Define Time based termsPath: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >BusinessTransactions > Interest Calculation > Interest Calculation > Define Time-Based Terms.Transaction Code: OB81Choose new entries and update the following entries

Enter your interest calculation indicator key in the int.cal.indicator fieldUpdate the fields currency key, Eff. from, sequential numberSelect the transaction type from the listEnter Reference interest rate (Check step 3)

Choose save button to save the data.Step 5: Enter interest valuesSPRO > SAP Reference IMG (F5) > Financial Accounting > Accounts Receivable & Accounts Payable >BusinessTransactions > Interest Calculation > Interest Calculation > Enter Interest Values.Transaction Code: OB83

Enter the reference interest rate key in the reference field Update the valid from and interest rate percentage

Click on save icon to save the data.Step 6: Create G/L AccountsPath: -IMG > Financial accounting > G/L Accounting > G/L Accounts > Master Data> Preparations > GL Account Creation and Processing > Edit G/L AccountTransaction Code: Fs00Create G/L accounts for Term loan, Interest paid, Interest received, loanStep 7: Prepare G/L account balances interest calculation procedureSAP IMG Path: -SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Posting > Prepare G/L Account Balance InterestCalculationTransaction Code: OBV2Click on Accounts button and enter chart of accounts keyand press enter to continue

Update the account symbols in the Acct symbol field, G/L Accounts as shown below. After updating the required data click on posting specs

Click on posting specs button, then select edit option and then click on create button and update the following information

Click on save icon to save the configured data. Successfully you have configured interest calculation in SAP.Dunning Procedures for Customer Configuration Steps SAP

Dunning Procedures ConfigurationStep 1: Access the transaction by using one the following navigation methodSPRO > IMG > Financial Accounting (new) > Account receivable and Account payable > Business transactions > Dunning > Dunning procedure > Define Dunning Procedures.Transaction code: FBMP

Step 2: Click on New procedure to define new dunning procedure

Enter the following data. Dunning procedure: Enter any four code Name: Dunning procedure for customers Dunning interval in days: 7 (You can maintain maximum 9) Number of dunning levels: 4 Line item grace period: 3 days Interest indicator: Update appropriate interest calculation indicator Activate the standard transaction dunning check box.

Press two times enter key and ignore the warning messageStep 3: Select Dunning texts button

Update company code and select customer radio button.

Select new company code button and update company code and press enter.

Select separate notice per dunning level check box.

Go back (F3) and select Yes button for the message to save the date.Step 4: Click on dunning levels button and select check box always dun for all the four levels.

Step 5: Select charges button (F6) and update the currency key.

On the Maintain Dunning Procedure: charges screen, maintain dunning level and dunning charges

Select dunning texts and update the Form that Specifies which is to be displayed for the dunning level.

Go back (F3), ignore warning messag and click on save button to save the configured data.Step 6: Assign dunning procedure in customer masterAccounting > Financial accounting > Accounts receivable > Master records > Maintain centrally > ChangeTransaction code: XD02Enter Customer code and company code

Select company code data and then select correspondence tabUpdate dunning procedure key to assign dunning procedure for customers master data

After assigning, click on save button to save the data.Define Warehouse numbers in SAP | Create warehouse

Define warehouse

Assign warehouse to plants and storage locations

Create the storage types.

SAP IMG Path: - SPRO > IMG > Enterprise structure > Definition > Logistics execution > Define, copy, delete, check warehouse number.

Enter transaction SPRO in command field and press enter on the key board.

Next Customizing execute project screen select SAP Reference IMG After Selecting SAP Reference IMG, a new screen IMG Path will be displayed. SelectDefine, copy, delete, check warehouse number. On the Choose activity screen, double click on the define warehouse number. In the next screen, click on the new entries to define warehouse numbers. On the new entries screen, update the following fields.

WhN - Enter the three digits alphanumeric unique number in the warehouse no. field.

Warehouse no. description: - Update the name of the warehouse number

After maintains the warehouses click on save button to save the entries.