FI - SD INTEGRATION

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SD Module in ERP system is responsible for handling of Sales and Distribution transaction of
the business. They are responsible of maintaining information relevant to enquires, quotation,
confirm sales order orders, deliveries and posting of Billing

SD Organization Structure

Sales Organisation

Distribution channel Sales Area

Division

The above combination of units is called as Sales Area

Sales Office, Shipping Points, Shipping Groups etc

Master Data: used in Sales and Distribution. It consist of

1. Material Master
2. Customer Master
3. Conditions Records

The business Process or scenarios (Sales and Services Process)

1. Maintaining of Prices and service charges, Discounts, Values against conditions (Maintain
condition Records)
2. Entering of marketing Process (Quotation, Enquires, etc)
3. Contract processing (Creation of Contracts)
4. Creation of Sales orders
5. Delivery Process ( With PGI – Post Goods Issue or without PGI)
6. Billing Process
7. Entering Credit Memos and Debit Memos etc.

While Performing Delivery Process, Billing Process, Debit and Credit Memos, there will be Financial
impact in the Finance Module

The Journal entries must be posed into Accounting system. The setting are relevant to posting of
accounting entries in Financial Accounting module is termed as SD-FI Integration or O to C (Order to
Cash) Cycle

O to C (Order to Cash) Cycle

Enquires → Quotation → Contracts → Sales order → Outbound Deliveries →
Billing Invoices → Incoming Payment

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Accounting Entries
Outbound Delivery
Delivery is picking up of Quantity from Warehouse and shipping of same to the customer

The Delivery transaction must be posted with Standard Price

Note :
1. Always Finished and Semi Finished Goods maintained with Standard Prices, which indicates
all good movements of that material must be posted with Standard Price assigned in the
material master

Entry Cost of Goods Sold Account Dr

To Inventory Finished Goods A/c

2. All goods movements must be posted in SAP with a movement type from the movement type
based on Valuation String, system identifies transactions keys

Inventory GL Accounts are maintained against transactions keys with the combination of

Chart of Valuation Group Valuation Valuation

Accounts Code Modifier Class

Transaction Code – OBYC

GL Transaction General/ Account Valuation
Accounts Keys Modifier class
COGS GBB VAK / VAY Material

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Inventory Finished Goods – BSX

Billing or Sales Invoices

Customer A/c Dr
Sales Deduction A/c Dr
To Sales Account
The above transaction is Posted due to Revenue GL A/c Assignment Settings (T-Code VKOA)

Revenue GL Accounts (Sales), Sales Deduction (Cash Discount), Material Discounts, Rebates Sales
Promotion Freight Charges and Clearing Accounts are automatically extracted for accounting entry
Posting at the time of Billing based on Revenue GL A/c Assessment Settings.

While Posting of Delivery transaction system will validate GL Accounts from the first sequences to the
last sequence. If GL A/c are not detected the Accounts documents is not released to Posting.

Revenue GL Accounts Mapping

The Revenue GL Accounts are mapped with the
1. Chart of Accounts
2. Sales Organisation
3. Account Assignment Group for Customer
4. Account Assignment Group for Materials
5. Account Key

AAG: Account Assignment Group for Customer

The indicators are
01. Domestic Company Revenue
02. Foreign Company Revenue
03. Affiliated Company Revenue

These indicators are assigned against Customer Master. Based on this indicators, we can
differentiate Revenue GL Accounts Ex.
GL Accounts No Description
300 000 Domestic Sales
300 001 Import Sales
300 002 Inter Company Sales

AAG: Account Assignment Group for Material – Indicators (VKOA)

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These indicators are assigned against Material Master used to differentiate Revenue (Sales or GL
A/c Based on Nature of Material

GL Accounts :
GL Accounts No Description
300 000 Domestic Traded Goods Sales
300 001 Import Traded Goods Sales
300 002 Inter Company Traded Goods Sales
300 003 Domestic Finished Goods Sales
300 004 Import Finished Goods Sales
300 005 Inter Company Finished Goods Sales

Accounting Keys:
Accounting Key is extracted from Pricing Procedures used in SD module to identify values or % for
Revenues Sales Deductions, Freight Charges, Taxes etc.

FI-SD INTEGRATION CUSTMISATION STEPS

Insert Regions - OVK2

Path: SPRO → sap net weaver→ General Settings → Set Countries→ Insert Regions → New Entry

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Define Sales Organisation – OVX5
Path: SPRO →Enterprise structure → Definition → Sales and Distribution→ define copy, delete,
check, sales organisation → Double click on define sales organization

➔ Copy from Company 1000 and

On pressing enter another screen open → Give Company and Address Details
➔ Save

Note : If required new regions will be maintained by SD Consultants

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Define Distribution Channel – OVX1
Path: SPRO→Enterprise structure → definition → Sales and Distribution→ define copy, delete,
check, distribution channel

→ Double click distribution channel → New Entries

Define Division – OVXB

Path: SPRO→Enterprise structure → Definition → Logistic – General → Define, copy, delete, check
division → execute →

D.Click on Define Division → New Entries → Fill the required entries

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Define Shipping Point - OVXD
Path: SPRO→Enterprise structure → Definition→ Logistics Execution→ Define copy delete check
shipping point →

D.Click on Define Shipping Point → New Entries

Fill the details in the form

Assign Sales Organisation To Company Code – OVX3

Path: Enterprise structure→ Assignment → Sales and Distribution→ Assign sales organisation to
company code

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➔ Position - T221 Press Enter

Assign Distribution Channel To Sales Organization

Path: Enterprise structure→assignment →Sales and Distribution→assign distribution channel to sales
organization → Execute → New Entries

Assign Division To Sales Organisation – OVXA

Path: Enterprise structure→ Assignment → Sales and Distribution→ Assign division to sales
organization → Execute → Position →

Set up Sales Area - OVXG

Path: Enterprise structure→ Assignment →Sales and Distribution→ Set up Sales Area → Execute →
New Entries

Define Plant – OX10

Path: SPRO → Enterprise Structure → Definition→ Logistics – General → Define copy delete, check
plant → Execute
→ D. Click on Define Plant → New Entries

Click on Address Button to complete the entries

➔ Save
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Assignment of Plant to Company Code - OX18
Path: SPRO→Enterprise structure → Assignment → Logistics – General → Assign plant to Company
Code → Execute → New Entries

Assignment of Sales Organization - Distribution Channel to Plant – OVX6

Path: SPRO→Enterprise structure→ assignment→ Sales and Distribution→ Assign Sales
Organization – distribution channel – plant → Execute → New Entries

Define Rules By Sales Area – OVF2

This step is required to maintain business area settings for sales transactions. Business Area
determination can be set up with below rules

Path: SPRO → Enterprise structure→ Assignment→ Sales and Distribution→ Business Area Account
Assignment → Define Rules by Sales Area
→ Execute

Assign Business Area To Plant and Division – OVF0

Path: SPRO → Enterprise structure→ Assignment→ Sales and Distribution→ Business area account
assignment → Assign Business Area to Plant and Division → Execute → New Entries

Assign Shipping Point to Plant - OVXC

Path: SPRO → Enterprise structure→ Assignment→ Logistics Execution→ Assign shipping point to
plant → Execute

Ctr+F Find Plant T221 and Select and Place the cursor on Plant and right click Assign

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Pricing Procedure:
Pricing procedure is heart of SD Module which is used to calculate Sales Price, Deductions, Other
Freight Charges etc. This is also used to detect account keys which is the key factor to identify
Revenue GL Accounts.

The Pricing procedure consist of Multiple condition types assigned to the Account Keys, against to
these conditions types SD Users or Business Users maintain condition records with value.

Maintain Pricing Procedure - DFP4 T-Code: VOK0 or V/08

Path: SPRO → Sales and Dist → Basic Functions→ Pricing → Pricing Control → Define and Assign
Pricing Procedure → Execute

→ D. Click on Maintain Pricing Procedure

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Copy Pricing Procedure: RVAA01 and Copy All

New Pricing Procedure:

ASPR01
1) To select all steps click on select all button
2) Now De-Select required steps as I given step numbers below:

STEP CTYP Description

a. 11 - PR00 /AS00 - Price ERL - Revenue
b. 101 - KA00 - Sales Promotion ERS – sales Deduction
c. 104 - K007 - Customer Discount
d. 105 - K004 - Material
e. 908 - - Net Value
f. 940 - VPRS - Cost (Stat Condi Type)
g. 950 - - Profit Margin

3) After you De-Select above Condition types now click on Delete button . So all selected
Condition types will be deleted and De-Selected conditions will be there only.

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Define Pricing Procedure Determination OVKK

PATH: SPRO→Sales and Distribution→Basic Functions→Pricing→Pricing Control→ Define And

Assign Pricing Procedures → Execute → Define Pricing Procedure Determination → New Entries

Document Pricing procedure will be extracted from Order Type used for Sales order.

Creation of general Ledger accounts--- FS00

Raw Material Consumption - 400000

Define Accounts Keys – For Sales Deduction: OK11

The Condition Types KA00,KA004,KA007 were assigned to a Single Key “ERS” which cause
Assignment of Single GL Account for all above deductions.

To differentiate Sales deduction GL Account we must define new Account Keys and Assign against
conditions types in the Pricing Procedure

Path: SPRO → Sales and Distribution→ Basic Functions → Account Assignment/costing → Revenue
Account Determination → Define And Assign Account Keys → Execute

➔ D.Click on Define Account Key

➔ New Entries

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Save

Select  Back Arrow

D.Click on Assign Account Keys

Position T221PP

Note : Revenue Account Determination is based on GL Account Assignment maintain against

access sequence priority. These sequences are as below

While releasing billing doc system validates GL Account from the 1st sequence till last sequence
combination

Assignment of accounts for automatic postings – VKOA

Path: SPRO → Sales and Distribution→ Basic Functions → Account Assignment/costing → Revenue
Account Determination → Assign Gl Accounts

D.Click on from above table

→ New Entries

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Set Up Partner Determination

Partner function in SD Module used to differentiate Partners or Customers at different phases of
Sales Order to incoming payment process as per customer requirement

Standard Partner Function Are:

SH Ship to Party
Bp Bill to party
PY Payer
Sp Sold to Party

Path: SPRO →Sales and Distribution→ Partner Determination→ Set up Partner Determination

➔ D. Click on set up partner determination for customer master

➔ New Entries

➔ Select T221 and D.Click on Folder Partner Functions in Procedure

➔ New Entries

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➔ D Click on Partner Determination Procedure Assignment

➔ Position - T221
➔ Assign ParPr to Group T221

On Assignment of Partner Procedure to Account Group, system will provide partner function
details for editing or maintenance at the time of customer master creation.

➔ D. Click on partner functions

➔ D. Click on accounts groups function assignment

➔ New entries

Goto position and Give Part as SH, BP, SP and PY Assign Domestic customer group

Assignment Shipping Points – OVL2

Path: SPRO → Logistics Execution→ Shipping → Basic Shipping Functions → Shipping Point and
Goods Receiving Point Determination → Assign shipping points → Execute → New Entries

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Define Common Distribution Channels

Path: SPRO→ Sales and Distribution→ Master data → Define common Dist. Channel → Position -
T221 Enter

Save and  Arrow Button

Define common divisions – OVR2

Step Assign Sales Area To Sales Document Types T-Code: OVAZ

Path : SPRO → Sales and Distribution → Sales → Sales Documents → Sales Document
Header → Assign Sales Area To Sales Document Types

Combine sales organizations -

Combine distribution channels -

Combine divisions

Assign sales order types permitted for sales areas

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Maintain Number Range for document type – T.Code OBA7
RV 14 - Billing Doc type
WL 49 - Goods Issue/Delivery

Assign Document types for general ledger view (Y1)

Create GL Account for Opening Stocks 200200

Maintain Automatic postings for MM - OBYC

GBB - BSA - 200200 – Opening Stock

GBB - VAX - 400200 – COGS without Account Assignment

Create Customer Master (XD01)

Customer Account group: – T221
Company code – T221
Give sales org – T221
Give dist.ch – T5
Give division – T5

→Enter

Title: – Company
Description – Hema Company
Search Code – HC
Country – In
Select company code data
Reconciliation Account – 200301 (Domestic Sales)
Terms of payment – 0001
Sort Key – 001

Select Sales Area Data

Sales Tab - pricing/Statistics
Give customer pricing procedure – 1 (Standard)

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Select Shipping Tab
Delivery priority – 02 (Normal )
Shipping conditions – 01 (As soon as possible)
Delivery plant – T221

Select Billing Doc

Select Price Determination check box
Inco terms – EXW (From Plant)
Terms of payments – 0001
Acct assignment grp – 01 (Domestic)
Tax class – 0 ( tax exempted)

Select Partner Function

Update with Partner Function Details

Save

Customer 92006 is created

Create Material Master (MM01)

Material :
Industry Sector :
Material Type

Basic data1
Sales org data1
Sales org2,
Sales general/plant data,
MRP1
general plant data/storage1,
accounting1,
accounting2,
costing2

click on organization levels

Plant
storage location
sales org-
Dist.channel-

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Material description
Base unit measure-EA
Material grp-grp1
Division-k1
Gross weight
Sales organization 1 tab
tax class-1
Select sales org2 tab
Acct assignment grp-03
General plant tab
Available check –kp
Tras.grp-0003
Loading/grp-0003
MRP1 tab
mrp type-ND

Accouting1 Tab
Price control-S
Standard price-
Valuation class-
Costing tab
give profit center-1001 →save the data

Create condition Records (VK11)

path: logistics→ Sales and Distribution→ Master data→ Conditions→ Select using condition type →
Create

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