Basic SD Topics

MIST 5600 – Spring 2003 SAP Exercise 1 – Sales and Distribution
Getting acquainted with the SAP R/3 Interface (Release 4.6 C),
And the Sales and Distribution Process.
This exercise starts from the “SAP Easy Access” initial screen. Your instructor
will lead you through the log-on process to get you to this screen.
In this exercise we will assume we are part of the IDES Company, which sells
motorcycles, and accessories, etc. We will do the following:
1. Look at an existing order to identify information on the header, the line
items, and the schedule lines for the order.
2. For the customer referenced in the order, we will look at the customer
master tables to identify certain information carried on the system.
3. For the material referenced in the order, we will look at the material
master tables to identify certain information carried on the system.
4. Check the inventory for that material.
5. Look at the document chain for this document, that is, the string of
subsequent documents that all relate to this order
Before you begin: We will spend a good part of the course learning to use, understand
and configure this system. Don’t rush through the exercise. Explore rather than merely
putting in the required keystrokes. Think about the system as you go. Get a feel for how
it works, how it is structured, what it can do for you. How easy would it be to learn to get
around using this SAP interface? How powerful is it in terms of supporting a business?
Basics
As you look at the screen, notice that the top four lines of the screen are familiar
Internet Explorer information and controls. We will generally ignore these, though the
very top of the screen has the title of the window on shaded blue background, and this
will be useful. In this case it is “SAP Easy Access”, the system’s initial window.
The next three lines are SAP information and controls. First, on a dark blue
background, you will see the SAP main menu comprised of five dropdown menus:
“Menu”, “Edit”, “Favorites”, “Extras”, “System”, “Help”, and “Function”. Click on one
of these and then run your cursor over the menu choices, and you will see drop down
boxes that show you the sub selections. If a sub selection has a black triangle to the right,
then there are further levels of sub selections available. Later, after having finished the
class, you may select “Log off” on the “System” dropdown menu to abandon the SAP
system (or you may use a shortcut – you will discover it once you read the next
paragraph).
Below the main menu bar is the button bar that surprisingly enough contains
buttons to perform common actions. Some of the buttons are enabled such as the “Enter”
(green check mark) button while others are disabled such as the “Save” (disk picture) or
the “Back” (back arrow) buttons. Running your cursor over the enabled buttons will
disclose their function. The buttons disabled will get enabled once the context allows it.
Below that is the title of the window, this time with a white background. (This is
a repeat of the top line of the whole screen, the Internet Explorer information). In these
exercises we will often refer to the window names as a way to help you know if you are
“on track”.
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From this point on, you will get to the specifics of a particular screen. Right now,
you are on the “SAP Easy Access” screen as shown in the white bar. Some buttons you
may use on a particular screen are presented on the next level. “SAP Easy Access” also
provides you with a folders list you can use to navigate in the same way you are used to
in a Windows-like environment.
To see how this works, let’s look at how we can take actions or get information
relating to customer orders. Double-click on the Logistics folder, and then move down
and double-click on the “Sales and Distribution” folder. (You can also single click on the
triangles to get the same result.) Double-click on “Sales”, and then on “Order”. You have
reached the point when you can execute a transaction. Double-click on “Display”. You
will see the white bar changing the title from “SAP Easy Access” to “Display Sales
Order: Initial Screen” as well the title of the window on the very top. You have now a
menu bar with different choices, appropriate for the task at hand. The standard button bar
below the menu bar remains the same, except for the button that is now enabled: the
“Cancel” (cross mark on a red globe). Select the “Cancel” button to abandon this
transaction (or any other transaction without saving any data). You are back to the folders
list. Click on the “SAP Menu” button, the first enabled button after the screen title to go
back to the compact view of the folders list. We are going to start from this point again.
1. Look at an existing order
Go back to “Display Sales Order: Initial Screen” (follow the menu path: Logistics
 Sales and Distribution  Sales  Order  Display)
For the order number, use 5404. You don’t need to fill anything else out.
Choose (or press the Enter key).
You will see the overview of the document, which includes much of the header
information. You won’t have to understand all the information on these
documents, but you will need to understand some of it.
Who is the sold-to party for this order? (Get the customer identifier and the name
--You’ll need this later.)
Identifier _______, Name ___________________
Who is the ship-to party? ____________________________________________
Under what circumstances might they be different? ________________________
Now look at the order lines. What “Material” (i.e. product code) is being
ordered? You will need this later.___________________
What quantity is being ordered? ___
What is the description of the material? ____________________________
You are looking at the Order Overview screen, which has only some of the
Header information, and some of the line item information. Note that you have a
number of tabs you can choose from. Use the Shipping tab.
What is the total weight in kilograms for this order? ___________________
What is the delivery status? ___________________
Under what circumstances would you get a different answer to the previous
question? _____________________________________________________
You can look at the rest of the Header information by going to Header Details as
follows. On the Display Standard Order 5404: Overview screen, note the
magnifying glass just above the tabs, on the right. Place your cursor over it
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and you will see what it does (shows “Display doc. header details”). Click on the
magnifying glass. Note that you now have more tabs you can choose from.
What kind of information is now available at the Details level that was not before
at the Overview level?
You can use the left arrow on the green ball (on the button bar) to back out
to the overview screen to compare. You can also use the left or right
arrows at the right of the tabs to bring other tabs into view, or get a list of
the tabs by clicking on the list icon to the right of the arrows.
(Give one example of new info at the details level ) __________________
Choose the Partners tab.
Who will be paying for this order? ___________________
Choose the Status tab.
What is the rejection status of this document? _____________
Note the delivery status that you have already obtained. You will notice
while using SAP that you can find the same information either in different
locations or in the same location reached through different ways.
On the Main Menu (dark blue bar on top), from the “Goto” dropdown menu,
choose Overview. (Goto  Overview).
Now look at the schedule lines for a line item. (A line item is a particular material
that is ordered. The schedule lines tell when parts of a line item will be delivered
etc. There may be more than one schedule line for a line item, if not all is
delivered at the same time.) On the Display Standard Order: Overview screen,
select the first line item by clicking to the left of the line (toward the bottom).
The line will turn dark yellow.
Having selected the line, go to the bottom of the form and click on the Display
Item Details button . (You may have to use the scroll bar on the right to down
to the bottom of the screen to see the buttons.)
Once again you have tabs to choose from. Select the tab. Then
choose the line with a confirmed quantity by clicking on the corresponding blank
button on the left side of the quantities/dates table (line turns dark yellow).
Now click on the magnifying glass at the bottom left (Sched. line-detail).
On the Display Standard Order 5404: Schedule Line Data screen, choose the
shipping tab.
What is the material availability date (the date the material is in the warehouse
and ready to be delivered)? ___________________
What is the loading date? ___________________
What is the delivery date? ___________________
Return to the Display Standard Order: Item Data screen by clicking (the
green back arrow icon at the top of the screen).
Select the Shipping tab.
Who is the ship-to party? ___________________
What is the unloading point at the ship-to party’s location? __________________
What plant of IDES is this coming from? ___________________
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Select some of the other tabs to see what information is available. Some
information is not filled out, since it has not been entered, but much of it is
available.
Now choose the tab. This shows information used in pricing and
discounting the sale, as well as things like cost and profit margins. Use the down
arrows to also see the bottom portion of the table. What is the cost per item?
how much tax is charged for this line item? ___________________
Is there any discount? ___________________
Use twice the cancel button at the top of the screen to back out to the initial
SAP Easy Access screen.
2. Customer Master Tables.
Now we wish to look at some of the data that SAP stores about each customer.
This data is the source for much of the information that goes on the order you
have already looked at. (The order requires a customer identifier (sold to party)
and automatically fills in much of the information from that.)
We will use the sold-to party from the earlier document. Start at the SAP Easy
Access initial screen.
Choose Logistics Sales and Distribution  Master Data  Business Partners
 Customer  Display  Complete
For customer, enter the identifier 1400 for the sold to party from the earlier order
document.
On the Sales Area, select the button.
A customer can conceivably purchase material from several different sales areas.
In this case, there is just one Sales Area: 1000/10/00, which is the one used in
Sales Order 5404. Double click on that line to import the data into the “Display
Customer: Initial Screen”. Choose to continue.
By looking into the several areas for general data, answer the following questions:
How many employees does the firm have? _______
What industry are they in? ___________________
Who is the contact person and what is his function?
What is the name of the person who serves as the Sales employee partner
in this relationship? (Hint: Look into )
___________________
Return to the SAP Easy Access initial screen by using (Cancel buttons)
3. Material Master Tables
Now we will look at master table information on each material (product), using
the material from the above order as our example.
From the SAP Easy Access screen, select Logistics  Materials Management 
Material Master  Material  Display  Display Current
Use the material from the example order, which is P-109. Choose or just press
Enter.
Now check the tables you want to see. Check the following views: Basic Data 1,
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Sales: General/Plant Data, and Costing 2. Scroll down and use any of the
following buttons to get to the Costing 1 view. Choose to continue.
In the Organizational Levels window, click on Plant to see which plants this
material is located in. Choose the Werk Hamburg plant by double clicking on it,
and then choose to continue.
It seems you get all the data, even if you only asked for a few tables. Notice,
however, that the ones you checked are specially marked .
Under
What is the description of the material? __________________________
What is the unit of measure? ______
What is the gross weight? ___________________
Under
What are the transportation group and the loading group?
____________________
To see what the other possibilities are for transportation group and loading group, click
once on the field with the value, then click on the listing icon that will become visible.
Use the browser back command to return. What is another possible transportation group,
beyond pallets? What is another possible loading group beyond cranes? ____
______________________
Under
What is the standard price? _______________________
Is this what was charged on the order? ___________________
(1 DEM = 0.51129 EUR)
Why might these two be different?
Now lets look at inventory levels for this material. Back out to the SAP Easy
Access initial screen by repeatedly using on the button bar below the SAP
menu bar.
4. Inventory Levels for a Material
From the SAP Easy Access screen, choose Logistics  Materials Management 
Physical Inventory  Environment  Stock Overview.
Use material P-109. No other entries are needed. Do not press Enter. It is
useless in this context. Instead, click on Execute (the green checkmark with a
clock behind it).
The table shows the company code and name (there are several different “companies” in
this SAP system), the plant code and name, the storage location code and name, and the
batch.
What is the total inventory in unrestricted use? ___________________
How many pieces are in the New York plant? ______________________
This time use the Exit button to go back to the SAP Easy Access Menu in
just one step instead of using repeatedly .
5. Document Flow
Now we want to see all documents that are part of the chain including this order.
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From the SAP Easy Access Menu, choose Logistics  Sales and Distribution 
Sales  Order  Display
Put the order number in: 5404
If you select (Enter) at this point it will display the order document. However,
from this Display Sales Order Initial Screen, you can also go directly to the
document flow display by clicking , the document flow button on the buttons
line after the white bar displaying the window title.
You can see all documents in this chain. You will see the order itself, the
delivery document which is summary document needed to control delivery, along
with the detailed documents showing the steps in the process. The transfer
document records that the items ordered are no longer available, and is used to
create a picking document. The goods issue documents says that picking is
complete and the items are no longer on the shelf. The invoice says the items
have been billed, and the accounting document gives the related accounting
entries. We will go into each of these document and the processes they relate to in
more depth, as we get deeper into the course.
6. Explore some more
If you have more time, go back and explore the same general material with
another customer order: 5729. SAP is a strange beast – very powerful, very
complex, and easy to get confused about. It is a tiger, and you now have it by
the tail! Best to start getting to know it.
SAP Sales and Distribution Tutorial
In this tutorial, you will learn how to enter sales orders, create delivery
documents, post goods issues to customers, and receive payment for SOS Beach Cruisers.
For this demonstration, we will look at the sales and distribution process as an order for
20 S model Beach Cruisers is taken by one of SOS’s salespersons, Patty Teller.
Creating a sales inquiry
During a weekly sales call, Patty Teller contacted the manager of Southwest
Recreational Vehicles. Southwest Recreational Vehicles is one of SOS’s wholesale
customers located in Phoenix. Currently SOS sells Beach Cruisers to both wholesale and
direct sales customers. SOS tried retail sales a couple years ago, but discontinued the
practice due to increased sales costs, and large levels of uncollectible accounts receivable.
Through a conversation with the manager of Southwest Recreational Vehicles,
Patty discovered that the Beach Cruiser S is selling rather well. As a matter of fact,
Southwest Recreational Vehicles just sold the last of their initial stock of 5 Beach Cruiser
Ss earlier in the day. The manager of Southwest Recreational Vehicles has decided to
purchase 20 additional S models immediately, with the promise of a larger order
dependant upon the speed in which he can sell the next 20 cruisers.
Patty’s first step in the sales order process is the creation of a sales inquiry. By
creating a sales inquiry, Patty will be able to check the pricing of the potential sales order,
and check inventory status. This allows the manager at Southwest Recreational Vehicles
to say yes or no dependant upon pricing or delivery date before a final sales order is
entered into SOS’s SAP R/3 system. Now let’s create the sales inquiry for the order of
20 Beach Cruisers for Southwest Recreational Vehicles.
From the SAP Easy Access Menu: Logistics  Sales and distribution  Sales 
Inquiry  Create
 Enter IN for Inquiry type.
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 Enter your sales organization in the Sales organization box.

 Distribution channel will be WH for wholesale.
 Division will be BC for Beach Cruiser.
 Click the enter button. You will be taken to the sales inquiry initial screen.
Leave the inquiry box blank. SOS’s R/3 system has been configured to generate
the inquiry number automatically. This is to prevent different salespersons from issuing
the same inquiry/sales order numbers to different customers. In the Sold-to-party box,
select Southwest using the dropdown menu (click inside the Sold-to-party box, then click
the small round gray button that appears to the right of the box; then click enter to see the
options). Leave Ship-to party blank, as the Beach Cruisers will be shipped directly to
Southwest Recreational Vehicles. In the Purch. Order no. box, enter a number to be used
as a reference. SOS asks sales persons to enter the customer company’s initials and the
date (enter SWRZ and today’s date).
On the Item overview tab, enter today’s date for Valid from. Enter a date one
month from today in the Valid to box. By entering these dates, you are telling the R/3
system that this inquiry, and any pricing or product amounts therein, is valid for one
month from today. Although Southwest Recreation Vehicles is not receiving any type of
discount for this order, SOS does offer price breaks during high volume months if
customers place orders and take shipment within a week of the sales inquiry. This
procedure is used to keep finished goods stock low, saving SOS inventory costs. The
inquiry validity dates allow salespersons to make discounted prices good for only one
week during the high volume months. After the week is up, the inquiry containing the
price break is no longer valid, and a sales order without a discount will be created. Now
enter a date two days from today in the Req. deli. Date box. This is the date that the
manager of Southwest Recreational Vehicles wishes to take delivery of the Beach
Cruisers. Record the delivery date on the attached information sheet.
As you can see, the rest of the inquiry form looks very much like a blank order
form. On the first line of the blank order form, enter BC-S under material. Now enter
the amount of Beach Cruisers (20) under order quantity. After Patty confirms that no
Beach Cruisers model S need to be ordered also, she presses the enter button (press enter
button now). Notice that the R/3 system fills in the rest of the form automatically. Now
let’s check the availability of the Beach Cruisers to see if there will be enough in stock to
make delivery. Highlight the BC-S line by clicking the small gray box to the left of the
Item column. Now select Environment from the menu at the top of the page, and choose
Availability. You should now be at the Availability Overview screen. Look at the Cum.
ATP qty column. This is the Cumulative Available To Promise quantity. If this number
is equal to or larger than the quantity ordered, SOS has enough S Beach Cruisers to fulfill
the order. Record the number of S Beach Cruisers available to promise on the
attached information sheet. As you can see, SOS has enough S Beach Cruisers, and
will easily be able to fulfill the order for 20. After informing the manager of Southwest
Recreation Vehicles that the Beach Cruisers can be delivered on the date he requested,
Patty clicks the green back button to return to the inquiry order form screen (click the
green back button now). Patty now needs to access the pricing information to confirm
the sales price with the customer.
To view the pricing information of the inquiry; highlight the BC-S row, and click
the Item conditions button at the bottom of the screen (looks like a small yellow coin
with the number 5 in it). You will be taken to the Item data screen. On the left side of
the screen, you will see pricing and cost information on a per unit basis. The numbers on
the right side of the screen show the totals for the current inquiry. As you can see, the per
unit price of the S model Beach Cruiser is $1,000.00. The cost to produce the Beach
Cruiser is $500.00, leaving SOS with a gross margin of $500.00 per unit sold. Patty
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looks at the right side of the screen, and informs the customer that the 20 Beach Cruisers
will cost $20,000.00. She can also see that the sale will be profitable by looking at the
$10,000.00 gross margin resulting from the sale. After the customer agrees to the price,
Patty returns to the inquiry order screen using the green back button (click the green
back button now). As the inquiry is acceptable to both her and the customer, Patty
clicks the save button, and writes down the document number which flashes across the
bottom of the screen (click save and record the document number on the information
sheet). Patty writes the inquiry document number on the back of one of her business
cards and gives it to the Southwest Recreational Vehicle manager. As is the procedure at
SOS, Patty instructs the customer to call the sales staff at SOS to place his order using the
inquiry number. Patty thanks the customer, and moves on to her next sales call.
Although some companies create the actual sales orders during sales calls, SOS
has found that creating an inquiry helps in many ways. First, the process allows
customers to look at their financial position before committing to an actual order. For
instance, if the manager at Southwest Recreational Vehicles discovers that his business
will not have the cash on hand to make the purchase of the 20 S Beach Cruisers, he
simply calls Patty back to change the inquiry. This way no solid information concerning
a sale needs to be removed from the R/3 system. Second, many SOS customers must
send any major stock purchases to a purchasing division before the order can be
confirmed. The manager at Southwest Recreation Vehicles can simply pass the inquiry
number onto his purchaser, who can then call the SOS sales division to place the order.
This greatly decreases the amount of paperwork customers must pass around at their own
companies. Not only does this cut down on mistakes at the customer’s company, but it
lessens the amount of time an SOS sales employee spends on the phone with a
customer’s purchasing staff confirming the contents of the order.
Now that the sales inquiry has been saved, let’s go over to the sales division at the
SOS home office to see how the inquiry is turned into a formal sales order.
Creating a sales order
The SOS sales division consists of one full time employee. Before SOS
implemented their SAP R/3 system, three full time employees were needed to keep track
of, enter, and forward incoming sales orders. Due to Sap’s ability to store, produce, and
forward sales information, a single employee can now easily complete all the necessary
functions.
Upon arrival to the SOS sales office, it is learned that the manager of Southwest
Recreational Vehicles is on the phone and is ready to turn the sales inquiry created earlier
into a formal sales order. The SOS sales order employee Keith Brown, has learned from
the Southwest Recreational Vehicles manager that he wishes to place an order identical to
the inquiry created by Patty Teller. After asking for the inquiry number, Keith goes
about creating the sales order.
From the SAP Easy Access Menu: Logistics  Sales and distribution  Order 
Create
 Enter OR for Order type.
 Enter your sales organization in the Sales organization box.
 Distribution channel will be WH for wholesale.
 Division will be BC for Beach Cruiser.
Since the customer does not wish to change any of the information on the inquiry,
Keith clicks the Create with reference button (click the Create with reference button
now). A pop-up box will appear, with the quotation tab showing. We will be referencing
an inquiry for this sales order, so click on the inquiry tab. Now enter your inquiry
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number from the last exercise, and click the copy button. You should now be at the
Create Standard Order screen. The information from the Southwest Recreational
Vehicles inquiry has already been entered. Enter the customer initials and date in the
Purch. Order no. box (SWRV and today’s date), and click enter. You might see a pop-
up telling you that the document is incomplete. Disregard this warning and click save.
Record the sales order document number, which will flash across the bottom of the
screen, on the information sheet. Keith gives the sales order document number to the
customer for future reference, and thanks the customer for the order. That’s all there is to
creating an order using the SAP R/3 system.
Now that the formal sales order has been created, why don’t we go next door to
the SOS shipping warehouse to watch what they do with the sales order. It is important
to note that we will not be taking any paperwork to the shipping department. In fact,
none of the transactions so far have required any paperwork to change hands. This means
that everything is kept accurate and available in the R/3 system. At no time can writing
be smeared or erased to accidentally change the order agreed upon during the initial sales
call made by Patty.
Creating delivery for a sales order
Since the Southwest Recreational Vehicles order is due to be delivered in two
days, and SOS has enough S Beach Cruisers to fulfill the order, the Beach Cruisers will
be loaded and shipped today. This will allow them to be driven to Phoenix, and delivered
in two days time. After Keith posted the sales order document, the sales order was
automatically entered into the SAP R/3 system shared database. This means that the
sales order information is automatically, and instantly, available to the shipping
department. Once again, this is accomplished without the use of paperwork.
Once the SOS shipping clerk, Clara Smith, sees that a new sales order has been
posted, she checks the delivery date on the document. Noticing that the order must be
shipped immediately, Clara creates a shipping document for the order.
From the SAP Easy Access Menu: Logistics  Sales and distribution  Shipping
and transportation  outbound delivery  Create  Single document  With
reference to sales order
 Enter SPBC (shipping point, Beach Cruiser) for shipping point.
 Enter the order delivery date for the Selection date (two days from today).
 Enter the sales order document number from the last exercise for Order.
Clicks enter, and you will be taken to the Outbound Delivery Create screen. The
sales order information should already be entered on the form. At SOS there are three
storage areas. Storage area 10 is the raw materials warehouse. Storage area 20 is the
Work In Progress area. Storage area 30 is the Finished goods shipping area. Clara must
record the storage area from which the Beach Cruisers will be taken (many businesses
have several different warehouses to ship inventory from). To do this, highlight the line
for BC-S, and click the Item details button on the bottom of the screen (looks like a
small magnifying glass on the left part of the screen). Now click on the picking tab. In
the SAP R/3 system, the term picking refers to the physical act of taking goods out of
inventory storage for a delivery. You will notice that the pick status on the lower left
portion of the screen shows that the order has not yet been picked. Enter 30 in the Stor.
location box to tell the system that the Beach Cruisers will be picked from the finished
goods shipping area. Click save, and record the delivery document number displayed
at the bottom of the screen on the information sheet. At this point, Clara tells the
loading employees in the warehouse to place 20 S Beach Cruisers in delivery trucks.
After the loading employees report to Clara that the S Beach Cruisers have been loaded,
she returns to the delivery document to enter the amount picked.
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Enter picked materials on delivery document

From the SAP Easy Access Menu: Logistics  Sales and distribution  Shipping
and transportation  Outbound delivery  Change  Single document
Enter your delivery document number from the previous exercise, and click the
enter button. On the Outbound delivery screen, click on the picking tab. Notice that the
BC-S line lists the storage location (SLoc) as 30. Also note that the box under Pick
quantity is blank. This is because the quantity loaded onto the trucks has not yet been
entered. Now look at the OvrllPickStatus (Overall Pick Status) and note that shows that
the order has not yet been picked. Enter 20 in the box under Pick quantity, and click the
enter button. Now look at the OvrllPickStatus, and confirm that it shows that the order
has been fully picked. The order is now ready to be sent to Southwest Recreational
Vehicles. The last task for Clara is to update the inventory of S Beach Cruisers at SOS.
This process is called posting of goods issue. Click save to record the picked quantity.
You should be taken back to the initial Change Outbound Delivery screen. If your
delivery document number is not already shown in the Outbound delivery box, enter it
now. Now click the Post goods issue button near the top of the screen. A message telling
you that your outbound delivery has been saved should flash across the bottom of the
screen.
To confirm that the correct amount of Beach Cruisers was automatically removed
from the R/3 system inventory, let’s take a quick look at the available inventory.
From the SAP Easy Access Menu: Logistics  Materials Management 
Inventory Management  Environment  Stock  Stock overview
 Enter BC-S in the Material box.
 Enter your Arizona Plant in the Plant box.
 Enter 30 for Storage location.
Make sure Display version is set to 1, and click the execute button (looks like a
small clock with a green checkmark). Then Stock Overview screen should now be
displayed. Look at the number in the Unrestricted use column. It should be 20 less than
the ATP number you wrote down in the first exercise.
Now that the delivery of the S Beach Cruisers has sent, and the cruisers have been
removed from SOS inventory, Southwest Recreational Vehicles can be billed for the
purchase. Let’s walk across the hall and visit SOS’s billing/accounts receivable
employee, Tom Hudson.
Billing the Customer
As we enter Tom’s office, we see that he has just noticed that a new delivery
document has been posted in the system. Tom then completes the billing process.
From the SAP Easy Access Menu: Logistics  Sales and distribution  Billing 
Billing document  Create.
If it is not already present, enter your delivery document number in the first row
under Document. Click the execute button. A sales invoice will be created and
displayed. Look at the Net value at the top of the invoice, and note that it is the same
amount agreed to by the manager at Southwest Recreational Vehicles. Record the Net
value, and click save to save the invoice. Record the billing document number
displayed at the bottom of the screen on the information sheet. While we did not
actually send a bill to Southwest Recreational Vehicles in this step, creation of the billing
document tells the R/3 system that payment is expected. The billing document is also the
connection between the material management module and the accounting module in the
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R/3 system. Without a billing document to confirm that the order was indeed shipped,
the customer payment could not be accepted in the accounting module.
Now let’s jump ahead a couple days in time and watch Tom as he handles the
receipt of payment from Southwest Recreational Vehicles.
Receiving payment from the customer
Logically, this function would only be completed once the Beach Cruisers were
delivered, and the customer sends payment. However, since we are working in the
classroom, we will have to pretend a couple days have gone by, and payment has been
received. When Tom receives the payment for the Beach Cruisers, he enters the payment
in the accounts receivables section of the R/3 system.
From the Sap Easy Access Menu: Accounting  Financial Accounting  Accounts
receivable  Document entry  Incoming payment
 Enter the order delivery date from exercise 1 (two days from today) for
Document date, and for Posting date.
 Enter your company code in the Company code box.
 Enter USD (United States Dollar) for Currency
 In the Bank data area, enter 113000 for Account (this is your primary bank
account).
 Enter the Net amount from the last exercise for Amount
 In the Open item selection area, select Southwest from the dropdown for
Account.
By completing this form, you have told the system that you wish to process the
incoming payment for the invoice equal to the Net amount in the last exercise for
Southwest Recreational Vehicles, and that the payment is to be added to your primary
bank account. Now click the process open items button. A warning message telling you
that the document date is in the future will flash across the bottom of the screen. Since
SAP works in real time, the system wants to make sure you know that you are working in
the future. As mentioned in the beginning of this exercise we are pretending that a
couple days have gone by. If it were really two days from today, the warning would not
appear. Click the enter button to acknowledge the warning, and continue. The Post
Incoming Payments screen should now be displayed.
At the bottom of the screen, you should see a 0.00 balance in the Not assigned
box. This is because Southwest Recreational Vehicles sent payment equal to the billed
amount. If payment less than the full amount had been received, the lesser amount would
have been entered on the previous screen, and the balance would be positive. The
invoice would remain open in the system until the full amount was collected from
Southwest Recreational Vehicles. Click the save button to post the payment in the
system. A message confirming the posting of the document should be displayed at the
bottom of the screen. Record the document number on the information sheet.
You have successfully sold some SOS Beach Cruisers. The first time you move
through the process it might seem like a lot of steps. But consider for a moment that you
just completed a process which in the past would have taken several employees a day or
more to accomplish!
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Sales and Distribution Information Sheet

Name: ___________________________
Dr. Morgan
CIS 360
Creating a sales inquiry
Delivery Date: ______________
Beach Cruiser ATP quantity: _________
Inquiry Document Number : ______________
Creating a sales order
Sales Order Document Number: _______________
Creating delivery for a sales order
Delivery Document Number: _____________
Billing the Customer
Net Invoice Value: ____________
Billing Document Number: _____________
Receiving payment from the customer
Incoming Payment Document Number: ______________
Name _____________
Exercise 2
Entering Transactions: Sales Order Processing
and Subsequent Functions
Business transactions in Sales and Distribution are recorded in the SAP R/3 System with
sales documents.
The sales order is the central document in Sales and Distribution. A sales order can be based on
preceding inquiries and quotations. During order entry, information on the customer and products
or services is recorded in the document. Various checks are carried out, such as the availability
check and the credit limit check. The information entered in the sales order is transferred to
subsequent documents, which are used to process the business transaction further. The delivery
document is the basis for all shipping activities. At the end of this process, the delivered goods
and/or services rendered are invoiced during billing. The billing data is then automatically
forwarded to Financial Accounting and to Profitability Analysis.
Process Chain
Creating a Sales Order
1. Delivering a Sales Order
2. Billing a Sales Order
3. Displaying the Document Flow
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Creating a Sales Order

1. Select Logistics  Sales and distribution  Sales  Order  Create.
2. On the Create Sales Order: Initial Screen, enter the following data:
Field Name Data Item
Order type OR
On this screen, the specification of the sales area (Sales organization, Distribution channel and
Division) is optional. As soon as you enter the sold-to-party on the Create Standard Order:
Overview screen, the R/3 System automatically determines the corresponding sales area. If the
sold-to-party is managed in more than one sales area, a selection screen appears in which you
can choose the appropriate sales area.
3. Select Enter. (Hint: Use the check mark icon to enter items)
4. On the Create Standard Order: Overview screen, enter the following
data:
Sold-to party 3000
Purch. Order no. C-BU-"Your User Number"
PO date Current date (mm/dd/yyyy)
Req. deliv. date Current date + 3 working days
Pricing date Current date
Material P-109
Order quantity 2
The purchase order number refers to the customer's purchase order. It can used later (e.g. if the
customer calls in with question about their order) to search for documents in SAP that pertain that
particular customer purchase order. (SAP refers to this searching process as Match code).
5. Select Enter .
6. The dialog box Sales area for customer appears requesting that you select a sales
area since the sold-to-party is managed in more than one sales area. Select
3000/10/00 (USA Philadelphia/Final customer sales/Cross-division) with a
double-click.
7. The dialog box Partner selection appears requesting that you select a ship-to
party. Accept the proposed 3000 (Thomas Bush Inc.) by pressing Enter.
You may see a screen notifying you of a change in the invoice date, if you did not
accept the initially proposed “Req. Deliv. Date”. If the goods ordered by the
customer are not available on the requested delivery date, the R/3 System branches
automatically to an availability check screen. Here you can choose one of the delivery
options (for example, Delivery proposal). The R/3 System then branches back to the
overview screen.
Before we save the document, we want to “look around a bit”. In particular, we want
to see what date the SAP says the material needs to be “available” in the warehouse,
because we will use that date when we start the shipping process. We’ll also look at
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some pricing information, and some of the output that might be produced from this
order processing.
8. On the Create Standard Order: Overview screen, select the item you entered
(click on the square to the left of the line) and then select Schedule lines for item
(bottom, about 9th icon from left)
9. On the Create Standard Order: Item Data screen, select the schedule item with
confirmed order quantity and select Sched. line-detail . (bottom of screen, on
left side)
10. Select the shipping tab.
The R/3 System automatically schedules when to start the most important
shipping activities, such as picking, loading and transportation. The shipping
details screen displays the dates needed for shipping.
Write down the material availability date since you need this date as a
selection criterion to create a delivery. If the transportation scheduling date is
earlier than the former date, the delivery can be created on the transportation
scheduling date. This screen also shows the shipping point responsible for the
shipment of this order.
Material Availability Date:
11. On the Create Standard Order: Schedule Line Data screen, select Goto  Overview from the
main menu to return to the overview screen.
12. On the Create Standard Order: Overview screen select the item you entered and select Item
conditions . (bottom of screen, about the 10 icon from left.)
The R/3 System branches to the pricing screen Standard Order Create: Item
Data for the selected item. All of the elements that are relevant for the pricing of
an order item (for example, prices, surcharges, discounts, freight charges and
taxes) are represented by condition types in the SAP system. This screen shows
the different pricing elements that the R/3 System determined for the item. You
may need to page down (bottom left of table) to see the lower rows of the table.
13. Select Back (the green left arrow below the main menu), to return to the overview
screen.
14. On the Create Standard Order: Overview screen, select Extras  Output 
Header  Print Preview from the main menu.
On this screen, the R/3 System displays the output to be produced for this
transaction (for example, an order confirmation) and the partner (for example,
ship-to party) for whom the output is meant.
15. Back out to the Create Standard Order: Overview screen with the green left
arrow. Select Save. (Hint: to save entries click on the Floppy Disk Icon. At
the bottom of the screen the R/3 System will confirms that the standard order has
been saved. Write down the Order Number given at the bottom of the screen.
Order Number:
Suppose the business practice was to always send a confirmation of the order
through the regular mail. We can see what that would look like below.
16. On the Create Standard Order: Overview screen select Sales document 
Change from the main menu.
The R/3 System proposes the last order you created for further processing.
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17. On the Change Sales Order: Initial Screen, select Sales document  Issue
output to from the main menu.
A dialog box displays the output type that is valid for this sales document (BA00
= order confirmation).
18. Select the Print Preview icon .
The print preview of the order confirmation is displayed.
19. Return to the main SAP R/3 screen, using a combination of the green left arrow,
and the green check mark, as appropriate.
Delivering a Sales Order
As soon as the material availability date or the transportation scheduling date for a
schedule line has arrived, the material on the schedule line becomes due for shipping.
When you create a delivery document, you initiate shipping activities such as picking and
transportation scheduling. In this case, you will create an individual delivery.
Creating an individual delivery document
1. Select Logistics  Sales and distribution  Shipping and Transportation  Outbound delivery
 Create Single Document With Reference to Sales Order
2. On the Create Outbound Delivery with Order Reference screen, enter the following data:
Shipping point 3000
Selection date Material availability date (that
you recorded earlier), or
transportation scheduling date
SalesOrder Sales order number from the first
transaction
From item Leave blank
To item Leave blank
If you don’t remember the sales order number, you can search for it with a
matchcode. Select this underlined text, Matchcode with a double-click if you want an
explanation.
3. Select Enter. (green check mark)
The R/3 System branches to the overview screen of the delivery document.
4. On the Delivery Create: Overview screen having the tab Item overview selected, select the
delivery item (click on the square to the left of the item, line will turn yellow) and then select Item
details . (bottom of the screen)
5. The R/3 System displays a screen with detailed item information. Please note the content of the
following fields:
Field Name Data Item CODE

Picking status The picking status of the delivery item
WM activ.status Status of warehouse management activities
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6. Select Outbound delivery  Save from the main menu. The delivery document is saved.
Record the deliver #: ____________________
Picking
The delivery should now be picked. In “Lean” warehouse management (i.e. a
shortened, faster process), the transfer orders are used as the picking list, the
instructions to the warehouse staff for amounts and locations of all material to be
selected from the warehouse.
The transfer order can only be created after the delivery document is created, but
is a separate step.
7. On the Create Outbound Delivery with Order Reference screen, select
Outbound delivery  Change. The system displays the number of the delivery
document.
8. Select subsequent functions  Create transfer order from the main menu.
9. On the Create Transfer Order for Delivery Note: Initial Screen, enter 300 for
the Warehouse number. Enter the number for the delivery document in case it is
not defaulted by the system. Press Enter. (green check mark)
10. The active worklist shows two pumps to pick. Select to create
the transfer order. Data is transferred from the active worklist to processed items.
11. Select Post to save the transfer order.
12. The R/3 System creates a transfer order for picking the corresponding delivery
item. Write down the Transfer Order Number provided at the bottom of the
screen.
Transfer Order Number:
13. Return to the main SAP R/3 screen. (use the yellow up arrow)
Now display the transfer order. Select Logistics  Sales and Distribution 
Shipping and Transportation  Picking  Display Transfer Order Single
document.
Click on the “From Data” tab and see what information is there. In particular,
what is the Type? Click on the type field, and then click on the icon there and
enter the meaning of the type code. What storage bin is the pump in?
Meaning of Type code: _________________
Storage Bin: _________
Now click on the “To Data” tab. What is the meaning of the type code there?
Meaning of Type code: _________________
What is the transfer order telling the warehouse staff to do?
________________________________________________________________
Posting Goods Issue
As soon as picking is completed, you can post the goods issue for the delivery.
The goods issue document for a delivery is a Materials Management (MM) and
Financial Accounting (FI) document, which is used to update stock quantities and
stock values. In addition, a document used for Profitability Analysis is updated.
The goods issue completes the business transaction from the point of view of
shipping.
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14. Select Logistics  Sales and Distribution  Shipping and Transportation  Outbound delivery
 Change Single document
15. On the Change Outbound Delivery screen select .
The R/3 System confirms that the delivery has been saved.
16. Return to the main SAP R/3 screen.
Billing a Sales Order

Billing is the final activity in Sales and Distribution. When you create a billing document,
always refer to a reference document, the delivery in this case.
1. Select Logistics  Sales and distribution  Billing.
2. On the Billing screen, select Billing document  Create.
If the R/3 System does not automatically propose the delivery document number,
enter the shipping document number of the previously created delivery.
3. On the Create Billing Document screen, select Enter.
The R/3 System branches to the billing document overview screen.
On the Invoice (F2) Create: Overview of Billing Items screen, put the cursor
on the billing item and select Display item details . (bottom left)
The R/3 System displays detailed billing, price, accounting and sales order data
for this item. Notice the document numbers displayed on the screen.
On the Invoice (F2) Create: Item Data screen, select Item partners.
The R/3 System displays the different partners involved in this business
transaction.
Note that the partner responsible for payment (= payer) differs from the
sold-to/ship-to/bill-to party (scroll down to see all the partners)
Who is the Payer?
Who is the Ship-To Party?
4. Return to the Invoice (F2) Create: Overview of Billing Items screen. (green left arrow)
5. Select Save. (Hint: Use the floppy disk icon to save items)
The R/3 System confirms that the billing document has been saved. This means
not only that the billing document has been saved from a Sales and distribution
viewpoint, but also that the billing document data has been forwarded
automatically to Financial Accounting and Profitability Analysis.
Write down the Sales Invoice Number provided at the bottom of the screen:
Invoice number:
6. To display these documents, select Billing document  Display on the Create Billing Document
screen. Enter the document number created in the previous step.
7. On the Display Billing Document screen, select .
The dialog box List of Documents in Accounting appears from which you can
choose the document type you wish to access.
8. Select the Accounting document with a double-click.
The R/3 System branches to the overview screen of the Financial Accounting
document. On this screen, you can see the different line items and the
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corresponding accounts and amounts that have been posted in Financial

Accounting (scroll to the right to see the remaining columns)
Select line item 001. What Ledger Account Number is this line item assigned?
Line Item 001 Ledger Account Number:
Return to the previous screen and determine the ledger account assigned to line
item 002.
Line Item 002 Ledger Account Number:
Back out to the Display Billing Document screen. Select the line item, then select
Display Item Details
9. On the Invoice Display Item Data, select Item Details. Look for the Sales Order data.
Write down the Sales District (SlsDist.Order) assigned to the sale.
Sales District: .
Displaying the Document Flow

To integrate all the information in the logistics chain, the individual Sales and
Distribution documents build on each other and form a network of interrelated
documents. You can access the document flow from any of the Sales and Distribution
documents involved in the entire business transaction. In the case below, the document
flow is accessed from the sales order.
1. Select Logistics  Sales and distribution  Sales  Order  Display.
If the R/3 System does not automatically propose it, enter the sales order number
from the first transaction or search for the order using a matchcode.
2. On the Display Sales Order: Initial Screen, select Display document flow .
The R/3 System displays the different documents involved in the business
transaction and their overall processing status. From this list, you can branch to
any of the documents shown by placing the cursor on the corresponding line and
pressing .
Name _________________________________________
Exercise 3
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Preparing for Make-to-Order Order Processing:

Building Master Table Entries, Bills of Material,
Routings and Price Conditions
Make-to-order processing takes place when inventory is not generally stocked, but
instead the firm waits until an order has been placed and then produces just what has been
ordered. In this case we will have a deluxe motorcycle gas tank that must be produced
from an unpainted gas tank, paint, and gas cap. There are two processes that must be
completed in the production – paint the tank, and then when the tank is dry, attach the gas
cap. The Bill of Materials (or BOM) is the information (a document or in this case a
computer record) that records what raw materials (or partially produced materials) are
needed to create a given product. The Routing information tells what processes need to
be carried out, in what order, and even how long each process should take. All this
information together can be used to determine what the total cost of the product is, which
can be used in deciding the price, and in determining the profitability of the product.
In a future lab session (Exercise 4), we will need to process a make-to-order order. Our
experience has been that when many students all attempt to process orders on the same
product with a multilevel bill of material (and the same underlying raw materials), SAP
slows to a crawl (i.e. an hour passes and nobody gets done!) This is because of
contention for the same database records – if one order puts a lock on one of the
underlying materials, and another order puts a lock on another of the underlying
materials, we are in what is called a “deadly embrace”.
Therefore in this session, we will all define our own materials, copying from the original
materials. This avoids the database contention problem and will also give you more
experience in creating and copying master table entries. In general, because of the
complexity of master table entries, SAP recommends that wherever possible you copy
existing master table entries and customize them rather than creating new entries from
scratch. You’ll see the mechanics of that (four times!) Even more valuable, you will see
how SAP handles the concepts of bill of materials and routings.
A – Creation of materials
Note: In all of this exercise, whenever you see “XX” in the text, substitute your two digit
user number. In the writeup below you will also sometimes see transaction IDs listed
(i.e. “Transaction MM01”). These are in effect shortcuts to the desired screens, but you
can ignore them – the menu paths are also shown.
Creating: 1400-700-3XX, 1400-705-3XX, 1400-710-3XX and 1400-715-3XX by
duplicating: 1400-700 and components 1400-705, 1400-710 and 1400-715. These are,
respectively, the finished painted tank, the unpainted tank, the paint, and the gas cap. We
will copy complete master table information for each in turn.
A. Creating the material 1400-700-1XX
A1. Logistics Materials management Material master
Material Create (general) Immediately (Transaction MM01)
A2. Enter the following data:
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Material 1400-700-1XX
Industry Sector Mechanical engineering
Material type Finished product
Copy From 1400-700
A3. Enter.
Select all views (use the icon near the top of the window). Deselect (by
clicking on) Foreign Trade: Export Data, Purchasing, Foreign Trade: Import Data,
Purchase Order Text, Forecasting, Quality Management. Make sure the following
box is checked: . Press Enter.
A4. Enter the following data for Organizational Levels:
Copy from
Plant: 1000 1000
Stor. Location: 0001 0001
Sales Org.: 1000 1000
Distr. Channel: 12 12
Whse No 010 010
Storage Type 005 005
Don't forget the "Copy From" information above!

What is storage type “S”? (Click on the field, then on the icon that appears.)
Press “continue” (green check mark). You will see the tabs
with the views of the information you have copied for your new material.
A5. Save.
At the bottom of the screen you will see a message saying your material has
been created.
A6. Display the material 1400-700-1XX to verify that the several views have been
copied. Can you figure out a way to get to the below without having to go all
the way back to the main screen? Try clicking on “Material” in the menu
line.
Logistics Materials management Material master Material
Display Display Current (transaction MM03)
A7. Repeat the same procedure from step (A1) to step (A6) for each one of the
components of the bill of materials to be copied, doing the following changes:
In step (A3): Leave the Purchasing views selected.
In step (A2):
Material to create Material type Copy from
1400-705-1XX Raw Material 1400-705
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1400-710-1XX Raw Material 1400-710

1400-715-1XX Trading Goods 1400-715
The system will propose the data last used. Make sure you change the
material type and the “copy from” material.
B – Creation of the bills of material.

The BOM shows what materials are necessary to produce the painted deluxe gas
tank.
B1. Logistics Production Master Data Bills of Material Bill of

Material Material BOM Create (Transaction CS01)
Material 1400-700-1XX
Plant 1000
BOM usage 1 (Production)
B2. Select the button <copy from>

B3. Enter 1400-700 for Material. Press Enter.
B4. Select all the materials
B5. Select the button <Copy>
B6. Change the material from the original designation adding the suffix –1XX to
each material.
B7. Save. BOM is created for material 1400-700-1XX. There is not a bill of
materials for the lower level materials.
B8. Go back and display your BOM. (Click on “Material” on the menu line.)
How much paint is required for the gas tank? What are the units?
______________________________
C – Set up routing.
The routing shows the processes needed to produce the painted deluxe gas tank.
There is already a routing for material 1400-700. In this process we will indicate
that material 1400-700-1XX should be added to the materials that share the same
routing as 1400-700. In case you can’t read German, the two processes are “paint
it”, and “attach the gas cap”.
C1. Logistics Production Master data Routings Routings Standard

Routings Change (Transaction CA02)
Material: 1400-700 (the original material, not yours!)
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Plant: 1000
C2. Select the Header icon: .
C3. Select
C4. Add to the list your material (you may have to wait for your colleagues to
release this table while entering theirs):
Grc Material Plant
1 1400-700-1XX 1000
C5. Enter.
C6. Save. The system will give you a message that the routing was saved with
group 50000143 and material 1400-700. But in fact you have now copied and
saved a routing for your own material.
C7. Go back and look at some details of the routing: Logistics Production
Master data Routings Routings Standard Routings Display
Enter material 1400-700-1XX (your own material) and plant 1000, and click
enter.
You will see there are two operations for this routing. Use the horizontal scroll
bar at the bottom to look at setup time, machinery times, and labor times for each
operation.
How much setup time and labour time is allotted for painting the tank
(Luckier in German)? _______, _________
How much setup and labour time for attaching the gas cap? ________,
_______
These numbers are for cost accounting purposes.
You have now set up the master records, BOM and routing for the new
materials.
C8. Click Exit till you reach the SAP Easy Access Menu.
D - Creating Price Conditions
SAP has very sophisticated pricing capabilities -- prices can be determined based
on a variety of "conditions". This make it possible to customize the way pricing is done
to meet the needs of most organizations. Here we will use the simplest of schemes -- for
our new material we will specify the price to be used for a given sales organization and a
given distribution channel. By implication, the price might be different for a different
sales organization or distribution channel.
D1. Logistics Sales and Distribution Master Data  Conditions Select
using condition type Create (Transaction V-41)
D2. Enter the Condition Type: PR00 (Price).
D3. Select radio button for . Enter.
D4. Enter the following data:
Sales organization: 1000
Distribution channel: 12
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Material Rate Unit Per UoM

1400-700-1XX 300 EUR 1 PC
(UoM is unit of measure.)
D5. Enter.
D6. Save (condition records saved).
E - Purchasing materials
Before we can actually use the materials we have added to our tables, we need to order
them from a vendor, and actually receive them (i.e. record that they have been placed on
our loading docks and moved into our warehouses.) That is what the next two steps
accomplish.
Create a new purchase order requesting all three components from the vendor.
E1. Logistics Materials management Purchasing Purchase order
Create Vendor/Supplying Plant Known (Transaction ME21)
E2. Enter the Vendor (after the “Vendor” label): 1011. Press Enter.
E3. Enter
Purchase organization 1000
Purchase group 002
Click on “enter”.
E4. On the Delivery/Invoice tab, enter EUR for Currency.
E5. Enter the following materials:
Material PO Quantity Net Price Plant Storage

Location
1400-705-1XX 30 65 1000 0001
1400-710-1XX 25 44 1000 0001
1400-715-1XX 20 11 1000 0001
E6. Enter.
Note: If at this point you receive messages like “Material 1400-710-1XX not
maintained by Purchasing”, you have to go back to the creation of the material and only
select the view Purchasing for copy.
E6. Save. Record the number of the purchase order. _________________
E7. Exit.
F – Receiving materials
F1. Logistics Materials management Inventory management Purchasing

Purchasing Order Follow-on Functions  Goods Receipt (Transaction
MIGO)
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F2. Enter the Purchase Order number.

F3. For each one of the items, check . Do not forget you are receiving
three materials.
F4. Save. Record the Material Document Number: ___________________
F5. Exit.
F6. The stock for each one of the components may be confirmed by looking at the
Stock Overview screen: Logistics Materials Management Physical
Inventory Environment Stock Overview (transaction MMBE).
F7. Remember that after entering the material ID you will have to click on
(Execute).
F8. Can you figure out how to cycle through all three materials without having to
back out of the Stock Overview screen?
Name _____________________________________________
Exercise 4
Make-to-Order Production
with Prompt Delivery
This exercise shows the make-to-order production (assembly) of gasoline tanks for
motorbikes.
The exercise mainly focuses on a close integration of sales and distribution, production
and shipment to be able to dispatch the sales order to the customer as quickly as possible after
the production completion.

Process Chain
 Creating a Sales Order for a product not kept in inventory. This will automatically
generate the relevant production order. In this case it is a red deluxe gas tank that
must be produced from an unpainted gas tank, red paint, and a gas cap.
 We assume production is done ahead of schedule. After production has been
completed, you will confirm the Production Order as fully completed
 Newly Determining the Availability of the Sales Order
 Shipment
 Creating the Transfer Order for the Delivery
 Billing
 Record the payment

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A. Creating a Sales Order

In this first process step you play the role of an employee in sales order processing
working in the sales organization Germany/Frankfurt. A customer orders goods that have to be
specifically produced in make-to-order production and is to be delivered as quickly as possible.
A1. Select Logistics  Sales and Distribution  Sales  Order  Create.

A2. On the Create Sales Order: Initial Screen, enter the following data:
Field Data Description
Order type OR Standard Order
Sales organization 1000 Frankfurt/Germany
Distribution channel 12 Sold for resale
Division 00 Cross-division
A3. Confirm your entries .

A4. On the Create Standard Order: Overview - screen, on the Sales folder, enter the
following data:
Field Data Description
Sold-to party 1900 J & P, Duesseldorf
PO number GTD-1XX XX – Your group number
PO date Current date MM/DD/YYYY
Req.deliv.date Current date + 2 weeks
Pricing date Current date
Material 1400-700-1XX XX – Your group number
Order quantity 1 (piece)
A5. Confirm your entries. The system presents the information “Change in invoice date: The
billing date is redetermined” because the proposed Req.deliv.date has been changed.
A6. Press Enter. The following messages will be presented at the bottom of the screen:
“Copy routing”, “Copy BOM”, “Schedule order”, “Check material availability” and “Release
carried out”.
A7. To determine the urgency of the order for a later delivery processing, select the material
(the item line will change color).
A8. Select Goto  Item Shipping.
A9. The system displays the Create Standard Order: Item data screen. In the section
Shipping, enter the value 1 (high priority) in the field Delivery prior. Confirm.
A10. Select Goto Overview.
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A11. On the Create Standard Order: Overview screen, select the Shipping folder. In the
table All Items you can see the material availability date, the loading date, the delivering
plant and the shipping point among others.
A12. Select Save.
The system issues a sales order number. Note this document number.
_______________
A13. Exit.
A14. Select Logistics  Sales and Distribution  Sales  Order  Display.
A15. On the Display Sales Order: Initial Screen confirm the default number of the sales
order previously created. The system displays the Display Standard Order XXXX:
Overview screen.
A16. Select the order item and then select Schedule lines for item . (You may have to
scroll down.)
A17. On the Display Standard Order XXXX: Item data screen, mark the schedule line with
the confirmed quantity and then select Sched. line-detail ..
A18. On the Display Standard Order XXXX: Schedule Line Data screen select Procurement
folder. In the section Assembly/Process you find the corresponding production/assembly
order.
Production order number: __________________________
A19. The basic dates of this assembly order automatically determine the shipping date
(material staging or transportation planning) of the sales order. To display the assembly
order and its basic dates, select Header in the section Assembly/Process. The system
displays the Production order Display: Header screen.
When is production scheduled to start (date and time)? _______________ _______
When is it scheduled to finish (date and time)? _______________ _______
A20. Return to the SAP Easy Access menu.
B. Processing and Confirming a Production
Order
After the production order has been processed and delivered to the warehouse,
an employee of the motorbike assembly reports the completion of the respective
production order. The production procedure is displayed in a short version on purpose.
B1. Select Logistics  Production  Production control  Confirmation  Enter  For
order.
B2. On the Create Production Order Confirmation: Initial Screen, enter the following
data:
Field Data
Order Your production order number,

not your sales order.
B3. Press Enter to confirm.

The system displays the production order.
B4. On the Confirmation of Production Order Create: Actual data screen, enter the
following data:
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Field Data
Personnel no. 1276 (Dirk Raudies)
Confirm. text "Completed early, as requested" (optional)
B5. Select Final conf. [DON'T OMIT THIS!]

B6. Save your entries. The following messages will be displayed: “Calculate Costs”, “Post
goods movements” and “ Confirmation saved (goods movements:1; failed: 0)
B7. To check whether the production order has been completed by now and has been send
to the warehouse, press Exit. Go back to Production control.
B8. Select Order Display.
B9. On the Production Order Display: Initial Screen , enter the following data:
Field Data
Order Your production order number
B10. Confirm your entry.

B11. On the Production order Display: Header screen, please note the finish date of the
production order on the General folder for the ensuing comparison with the dates of the
sales order.
B12. To check the order status, on the Production order Display: Header screen, click on
by the Status line. On the Display Status screen, you will find the status DLV in the
section System status, which shows that the order has been completely produced and
delivered to the warehouse. The respective sales order can therefore be dispatched.
B13. Return to the main SAP Easy Access menu.
C. Newly Determining the Availability of the Sales

Order
In this exercise, we assume that the sales person converses with the customer and thus
is informed that the gasoline tanks are to be delivered as soon as possible. To determine the
most recent shipping date, the sales person executes an availability check and confirms (or
modifies) the newly calculated date. After that the shipment can take place.
C1. Select Logistics  Sales and Distribution  Sales  Order  Change.
C2. Enter your original sales order number. Press Enter.
C3. On the Change Standard Order XXXX: Overview screen, mark the first order item
and select Schedule lines for item .
C4. On the Change Standard Order XXXX: Item data screen, mark the schedule line
that contains a confirmed quantity and select Sched. Line-detail (the magnifying
glass).
C5. On the Change Standard Order XXXX: Schedule Line Data screen select the
Sales folder.
You can now see the planned delivery date. The Shipping folder shows the formerly
planned material availability date and the transportation planning date. You see that
the material availability has been planned in accordance to the former order finish
date of the production order.
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C6. Select Back to return to the Change Standard Order XXXX: Item data
C7. To determine the shipping dates based on the new availability situation, change
Deliv. Date to the current date.
C8. Select Item availability . The system now checks the availability of the necessary
materials taking into consideration the confirmed actual dates of the respective
production order. Acknowledge the information message that is presented.
After the availability check has been completed, you can see that the system created
a second schedule line and that the delivery can be dispatched earlier than planned.
C9. To check the new material staging date, mark the schedule line with the confirmed
quantity on the Change Standard Order XXXX: Item data screen and then select
Sched. line – detail
C10. On the Shipping folder, you can see the new dates. Set the Transport. plan. date to
the current date. The shipping point is 1000 in plant 1000 (Hamburg).
C11. Save the sales order.
D. Shipment
After confirming the delivery date brought forward by the sales person, the delivery for the sales
can be created.
D1. Select Logistics  Sales and Distribution  Shipping and Transportation 
Outbound delivery  Create Single Document With Reference to Sales Order
D2. Enter the Shipping Point: 1000
D3. Enter the order number: XXXX
D4. Press Enter.
D5. Save.
D6. The delivery is created. Take note of the document number. ______________
D7. Exit to the main menu.

E. Creating the Transfer Order for the Delivery
E1. Select Logistics  Sales and Distribution  Shipping and Transportation  Picking
 Create Transfer Order Single Document
E2. On the Create Transfer order for Delivery Note: Initial Screen, enter the following
data:
Field Data
Whse number 010
Plant 1000
Delivery Your document
Adopt pick.quantity 2
E3. Press Enter to confirm your entries. The system creates a transfer order for the
picking of the delivery quantities. The option 2 (adopt picking quantity) has the effect
that the goods issue posting for the delivery is done at the same time.
E4. Save. Record the transfer order number:
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_______________________________
E5. Return to the SAP Easy Access menu.
F. Billing
To complete the business process, you need to create the billing document with
reference to the delivery created earlier.
F1. Select Logistics  Sales and Distribution  Billing  Billing Document  Create
F2. On the Create Billing Document screen, enter the following data:
Field Data
Document number Delivery document number
F3. Confirm your entry.

On the Invoice (F2): Overview of Billing Items screen, the system displays the
billing items for the gasoline tanks delivered.
F4. Select Save. The system now automatically forwards the billing data to financial
accounting and profitability analysis and the make-to-order production has been
completed.
F5. Return to the SAP Easy Access menu.
G. Displaying the Document Flow

To integrate all the information in the logistics chain, the individual Sales and
Distribution documents build on each other and form a network of interrelated
documents. You can access the document flow from any of the Sales and Distribution
documents involved in the entire business transaction. In the case below, the document
flow is accessed from the sales order.
G1. Select Logistics  Sales and Distribution  Sales  Order  Display.
If the R/3 System does not automatically propose it, enter the sales order number
from the first transaction or search for the order using a matchcode.
G2. On the Display Sales Order: Initial Screen, select Display Document flow.
The R/3 System displays the different documents involved in the business
transaction and their overall processing status. From this list, you can branch to any
of the documents shown by placing the cursor on the corresponding line and
pressing Display document. Note that the accounting document for the invoice has
an "open" status.
G3. Return to the SAP Easy Access menu.
H. Payment
Locate the outstanding invoice records for Customer 1900 doing business in
Company code 1000. Verify that the delivery and associated accounting document for the
sales order you processed are displayed.
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H1. Select Accounting  Financial Accounting  Accounts receivable  Account 

Display/change line items
H2. Enter 1900 for Customer and 1000 for Code company. Select Execute .
H3. On Customer Line Item Display, the delivery document is listed under the
Assignment column. The accounting document is listed under the Doc.no. column.
Write it down.
H4. Exit (to the level Accounts Receivable).
Post payment to the invoice you have been tracking and record payment document
number. Enter the requested information, verify the “Not assigned” value is zero and save
the transaction.
H5. Select Document entry  Incoming payment
H6. At the Post Incoming Payments: Header Data screen, enter the data shown
below:
Field Data
Document date Today’s date
Company code 1000
Posting date Today’s date
Currency EUR
In the section Bank data, enter:

Field Data
Account 100009
Amount 340.6 (This is 348.0, less a cash discount)
Value date Today’s date
The Value date is used in the Treasury application for defining the times of cash
inflow and outflow
In the section Open Item Selection, enter 1900 for Account.
In the section Additional Selections, mark Document number.
H7. Select the button “Process open items”
H8. On the Post Incoming Payments: Enter selection criteria, enter your accounting
document number in both fields “From” and “To”
H9. Select the button “Process open items”
H10. Select Save.
H11. Exit.
H12. How can you verify that the accounting document has been cleared?
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Exercise 5
Integration of G/L, Vendor Records, and
Purchasing Records
In this exercise you will see how G/L master data and Vendor master data are integrated
into the purchasing process, and how the purchasing process integrates with the G/L.
To create and use a new G/L account you will have to enter it into the chart of accounts
for the enterprise (the client), specify it as usable by a particular company (legal entity within the
enterprise) and assign it as a cost element to a particular controlling area. To create and use a
new vendor, you will have to create it for a particular company (legal entity) and then assign it to
(authorize it for) a particular purchasing organization. Thus we see three different "views" of the
organization contained in SAP: the financial accounting view, the controlling view, and the
materials management view.
Once all this is done, you will be able to enter a purchase order to buy new materials
from our new vendor, and allocate those costs to the new G/L account. You will be able to trace
back to the origination point of financial documents originating in Materials Management.
A. Create a General Ledger Account
Create a new general ledger for Recycling Expense in chart of accounts CAUS (United
States). Since it is an expense account, make sure to attach the account to a P&L (Profit and
Loss) account statement type. We will be closing out the balance of this account to Retained
Earnings account 900000 at year-end. For organizational purposes attach this account to group
General G/L Accounts. Use the account number 4044XX for your new account. It will be mapped
to the Corporate group chart of accounts CONS using account number 312600 (other general
expenses). Note the number of your new general ledger account.
A1. Select Accounting  Financial Accounting  General Ledger  Master Records 
Individual Processing  In Chart of Accounts
A2. On the Edit G/L Account Chart of accts data, enter the following data (XX refers to
your group number in class):
Field Content Description
G/L account no. 4044XX Recycling Expense
Chart of accts CAUS Chart of accounts – United

States
A3. If you click on the “Chart of Accounts” field, you will get the other charts of
accounts that have been defined. Double-click on CAUS (United States).
A4. Select to create a new account.
A5. On the folder,
a. In the section , select G/L accounts (general) for
Account Group. If P&L statement acct is not checked, check it.
b. In the section , enter Recycling Expense for both Short Text and
G/L acct long text fields.
c. In the section , enter 312600 (Other
General Expenses) for Group account number.
d. Press Enter.
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A6. Save. Account 4044XX was created in chart of accounts CAUS.

A7. Exit.
Make the new Recycling Expense account available for use in Company Code 3000. Line
item display for the new account is required. The sort criteria when displaying the line items
should be by document number and fiscal year (sort key 002). Since the account is an expense
account we want expense type fields to display when processing documents using this account.
Therefore assign the account to field status group G033. The tax category should be set to Input
Tax, “-“. Flag the field, “Posting without tax allowed”.
A8. Select Accounting  Financial Accounting  General Ledger  Master Records 
Individual Processing  In Company Code
A9. On Edit G/L Account Company code data, enter the following data:
Field Content
G/L account no. 4044XX

Company code 3000
A10. Select to create G/L account company code data.

A11. On Create G/L Account Company code data screen, for the
folder
a. In the section
i. Enter the minus sign “-“ (Only input tax allowed) for Tax Category.
TAX CATEGORY CANNOT BE BLANK!
ii. Check Posting without tax allowed.
b. In the section
i. Check Line item display
ii. Enter code 002 (Doc. No., fiscal year) for Sort key.
A12. In the folder,
In the section , enter code G033
(Cost accounts for external services) for Field status group.
A13. Save. The account 4044XX has been created for company code 3000.
A14. Exit.
B. Using an account in Controlling

A cost element is a criterion for classifying all the costs arising in a company code. Creating
an account in a Chart of Accounts and then creating the company specific portion of the master
record makes the account available for use for financial general ledger postings. However, in
order to make the account available for use in Controlling, the Primary Cost Element must be
created. The Primary Cost Element has a one to one relationship with an account in the general
ledger. The general ledger account must exist first before the primary cost element can be
created.
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You have just created GL account 4044XX in Company Code 1000 for Recycling Expense.
Now make this account available for use in Controlling by creating it as a Cost Element in
Controlling Area 2000. Assign it to the Cost Element 01 for primary cost elements.
B1. Select Accounting  Controlling  Cost Element Accounting  Master Data  Cost
Element  Individual Processing  Create Primary
B2. If the dialog box Set Controlling Area appears requesting that you select a
Controlling area, enter 2000 (CO N. America).
B3. On Create Cost Element: Initial Screen, enter the following data:
Field Content
Cost Element 4044XX
Valid from January 1, 2003
to Dec 31, 2003
B4. Press Enter to continue.

B5. In the folder, enter 1 for CElem category (assigning Primary
costs/cost-reducing revenues to Cost Element Category).
B6. Save. Cost element has been created.
B7. Exit.
C. Create a Vendor
Create a vendor, UGA03XX, for use in Company Code 3000 (XX refers to your group number
in class).
C1. Select Accounting  Financial Accounting  Accounts Payable  Master records
 Create
Field Content
Vendor UGA03-XX
Company Code 3000
Account Group VEND
C2. Press Enter.

C3. On the Create Vendor: Address screen, enter the following data:
Field Content
Name <your choice>

Search UGA
Terms
Street <your choice>

Postal Code 30605
33/8
City Athens
Country US
Region GA
C4. Proceed to the next screen , Create Vendor: Control. Enter <your choice> for
VAT reg.no.
C5. Proceed to the screen Create Vendor: Accounting information (it is not the next
screen). Enter the following data:
Reconciliation account 160000 Trade payables - domestic

Cash mgmt. group A4 Major Vendors
C6. On the Create Vendor: Payment transactions Accounting, enter the following
data:
Payment Terms ZB00 Payable immediately

Payment Methods CS Check (C)
C7. Save. Vendor UGA03-XX was created in company code 3000.
C8. Exit to the main menu.
Since the purchasing organization will be responsible for handling the initial creation of
purchase orders, create the purchasing view of the master record for your vendor by referencing
vendor 1500, Company Code 3000 (IDES US INC), Purchasing Organization 3000 (IDES USA).
Change the salesperson and phone number to reflect correct information of the new vendor.
Create a Partner Relationship on the partner function screen. The partner function should be VN,
and the partner number UGA03-XX.
C9. Select Logistics  Materials Management  Purchasing  Master Data  Vendor

 Purchasing  Create
C10. On the Create Vendor: Initial screen, enter the following data:
Field Content
Vendor UGA03-XX
Purchasing Organization 3000
Account group 3000
and the Reference Data:

Vendor 1500 EASTERN SUPPLY CO.

Purchasing Organization 3000 IDES USA
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C11. Press Enter to proceed to the next screens to view the data contained in the
Purchasing portion of the Vendor Master.
C12. Change the Salesperson and telephone number. Press Enter.
C13. On Create Vendor: Partner Functions, verify that the partner function is VN
(Vendor) and the number is UGA03-XX.
C14. Save. Vendor UGA03-XX has been created for purchasing organization 3000 (IDES
US).
C15. Exit.
You are asked to review integration of the “Purchase Order/Stock Receipt/Invoice Receipt”
process in terms of its significance to accounting. It will allow you to check that postings have
been made with correct values to correct amounts. You need to make sure that you can retrace
the value and document flow for audibility. Pay special attention to the GR/IR (Goods
Receipt/Invoice Receipt) account.
D. Enter a purchase order

Enter a purchase order for 10 Recycling Cans. These items are not inventoried, but are
expensed to a cost center when purchased. The price is 10 each.
D1. Select Logistics  Materials Management  Purchasing  Purchase Order 
Create  Vendor/Supplying Plant Known
D2. On the Create Purchase Order, enter UGA03-XX for the Vendor. Press Enter.
D3. Enter the following data:
Purchase organization 3000 IDES US
Purchasing group 021 Stevens, K.
D4. Press Enter. Click on in case the table to enter the material is not
displayed.
D5. Enter the following data (do not use the enter key, but the tab key or the mouse
pointer to move from field to field in the table; press only the enter key after entering
all data):
A (Account assignment category) K Expense to a cost center
Short text Recycling Cans
PO Quantity 10
Oun (Order Unit) Can Canister
Deliv. date D Today’s date
Net Price 8
35/8
Currency USD
Price Unit (Per) 1
OPUn (Order Price Unit) Can
Matl. group 010 Consumables
Plant 3000 New York
Stor. Loc. 0001 Warehouse 0001
D6. Press Enter. Since you placed a value in the account assignment category of K, the
system will require you to enter a cost center.
D7. On the folder, enter the following data:
Field Content
G/L Account 4044XX
Cost Center 1200
D8. When all data is entered, hit enter. You will receive the warning “Tax jurisdiction
PA0000000 of account assignment adopted in item” because it is the tax jurisdiction
that has been defined for the cost center. Simply acknowledge that you have been
informed by pressing enter.
D9. Save the document.
D10. Record the Purchase Order Number: _______________________
D11. Exit.
E. Create a Goods Receipt
The recycling cans were delivered. Create a goods receipt referencing the purchase that you
just created.
E1. Select Logistics  Materials Management  Purchasing  Purchase Order 
Follow-On functions  Goods receipt
E2. Enter your purchase order number from the previous section.
E3. Enter. The goods receipt selection screen appears displaying the items in the
purchase order you have created.
E4. Check on the bottom of your screen. Enter.
E5. Save the document.
E6. Record Goods Receipt Document Number (uniquely assigned document number):
______________________________
E7. Exit.
F. Displaying Documents
F1. Select Logistics  Materials Management  Purchasing  Purchase Order 
Follow-On functions  Goods Receipt
F2. Display the Goods Receipt Document by clicking on your document number under
Material Documents on the right side of the screen. If the document does not show
up, enter the Goods Receipt Document Number:
36/8
F3. Press Enter to proceed to the material document overview screen.
F4. In the folder, click on to view the financial

documents created when the recycling cans were received. You should see at least
three documents: accounting, profit center, and cost accounting. The cost accounting
document was created based on the cost center you entered in the purchase order.
F5. Record the Accounting Document Number (uniquely assigned document number):
F6. Double-click on the accounting document to display it. Record the debits and credits
for this journal entry. Scroll to the right to see the whole document.
F7. Exit.
G. Record the Vendor Invoice
G1. You receive the invoice from UGA03-XX for the 10 recycling cans you received
earlier. Create the journal entry reflecting this business event. Select Logistics 
Materials Management  Purchasing  Purchase Order  Follow-On Functions 
Logistics Invoice Verification.
G2. On the Enter Invoice enter the following data: (This data is invoice header
information. It is the same information required when entering a docu ment from FI.)
Field Content
Invoice Date Today’s Date
Amount 80.00
G3. Enter your purchase order number:
(or you may select Vendor from the list and enter your vendor):
G4. Press Enter.
G5. Save the document.
G6. Record the Invoice Document Number (uniquely assigned document number).
Invoice Document Number __________________________
G7. Exit.
H. Display the Accounting Entries

H1. Select Accounting  Financial Accounting  Accounts Payable  Document 
Display
H2. Record the debits and credits for the journal entry.
Debit G/L Account Number and amount _________________________
Credit G/L Account Number and amount _________________________
H3. Select Environment  Original Document to view the originating documents for the
displayed document. What document are you viewing?
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____________________________________________
H4. Click on in case a set of folders, starting with the folder “Material”,
are not displayed. Select the folder. Click on the purchase order number
field. What information is available in the folder?
Name ____________________________________________________
Exercise 6
Adding a New Material
A. Define a new material

As a first step in bringing Zoom-Zoom, Inc. into the SAP system, we will first add the
major product (Thunder Road Courier Motorcycles) to the system so that we can record
sales out of the Philadelphia sales organization. Then we will see other changes that are
necessary to be able to sell the material.
Start by entering the material in the master tables.
A1. [MMH1] Logistics Materials Management Material Master Material
Create (Special)Trading Goods.
A2. Your new material number should be 5600-1XX where XX are the last two
digits of your user ID. Industry sector should be “Retail”. Use 1400-100 as
the material to copy from.
A3. Select all views, and then unselect Foreign Trade Export data, Foreign Trade
Import Data, MRP1, MRP2, MRP3, MRP4, and Forecasting. Click on
“continue” (green check mark).
Use the following data:
Copy From:
Plant: 3000 3000
Storage location: 0001 0001
Sales Org: 3000 3000
Dist Channel: 10 10
Warehouse Number 300 300
Storage Type: 005 005
A4. You will see the tabs for views displayed. Don’t move too fast here!!!
You can examine any of the views you’ve requested, but do not select any of
the views you have previously unselected, or you will be asked for data that
will not be needed for this exercise. As you go through the data, think about
the fields that contain data. What is the significance of the entries? For many
fields you can see the possible choices by clicking on the list box field, then
the down arrow.
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Make the appropriate choices for this motorcycle – it should be fairly obvious
given the choices.
Here are the changes to be made:
On Basic Data 1:
 the division (make it 00)
 the description (make it Thunder Road/Courier),
 the material group,
 the product hierarchy (start at the top level and work down through
the levels by clicking on the “next level” button after you have
highlighted your choice so far. This is not Accessories but a
Motorcycle (complete)
 Assume the net and gross weight are 300 KG.
On other tabs:
 Make sure Availability check (in Sales general/plant) is set
"individual requirements".
 Set the purchasing group (Purchasing view) to Stevens, K.
 The moving average price and the standard price should be 3500
(in the Accounting 1 view). Don’t goof on standard price – you
may not be able to correct it!
A5. Save the new material.
A6. When asked about tax classifications, select “No tax” for Canada and
“Taxable” for United States.
B. Purchasing the new material
Now bring in some inventory to the warehouse by purchasing the new material with
the following process. Remember that to SAP, a purchase order means we buy material
from a vendor to put in our warehouse. A sales order means a customer wants to buy
material that we will take out of our warehouse and give to them.
B1. [ME21N] Logistics Materials Management Purchasing Purchase
Order Create Vendor/Supplying Plant known.
B2. Use Vendor 3100, Purchasing Organization 3000 and Purchasing Group 021
letting the rest of the default data stay. You may need to indicate Company
3000. Fill in the material number (5600-1XX) an order quantity 50, the net
price of 3500, currency is USD, and Plant 3000.
B3. Save. Record the purchase order number _____________.
B4. Exit.
You have now ordered material. Next step, when it gets delivered, is to
record it as entered into your warehouse.
C. Goods Receipt
C1. [MIGO] Logistics Materials management Inventory management
Purchasing Purchasing Order Follow-on Functions Goods Receipt.
C2. Make sure you are requesting a goods receipt. Enter the Purchase Order that
you just added to the system.
C3. Check , (bottom of the screen.)
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C4. Save. Record your material document number _______________.

C5. Now check the inventory for that part. [MMBE] Logistics Materials
management Physical Inventory Environment Stock overview. You
should see your just delivered materials.
D. Creating a sales order
D1. Now we must use this material in a sales order. By now the path should be
familiar: [VA01] Logistics Sales and Distribution Sales Order
Create. Use OR, Sales Org. 3000, Dist. Channel 10, and Div 00.
D2. On the order, use customer 12121, purchase order GHF001, and fill in the new
material and the quantity of 2. Indicate the delivery should go the side door.
You will want Plant 3000.
D3. Confirm your order by clicking the green check mark. Save your order and
record the order number _________.
D4. Everything looks good! BUT IT ISN’T. Now go back and display this order,
select the single item line, Display Item Detail (bottom left). Now click on the
conditions tab. You will see that the cost of these motorcycles is $3500 as
entered, but we have not put a price in, and the result is a price of zero, and a
loss of $7,000 on the sale.
D5. SAP has the ability to specify the "pricing procedure" separately for each sales
area. You will see this later on when you define a new sales area. The pricing
procedure used by Sales Org 3000, Dist Channel 10, Division 00 is
"RVAJUS", or standard US. You can see how this process worked for this
document by clicking on the button at the bottom of the screen.
Following the RVAJUS procedure, SAP examines lots of different
“conditions” to decide what is the price; the PR00 condition allows an
organization to specify the price at the Sales Org and Dist Channel level.
Open the PR00 folder to get the details: the PR00 record is missing.
D6. To put the basic pricing information out there, use the following: [VK31]
Logistics Sales and Distribution Master Data Conditions  Create
D7. Open the Prices folder. Execute Material Price. Click on the page icon:
.
Make sure the default entries are correct (Sales Org 3000, Dist Channel 10).
Create a new entry in the table: Condition Type is PR00, enter your material
number, the rate of 6000, Units for the rate of USD, per 1, UoM (unit of
measure) of pc (or piece).
D8. Save.
D9. Now go back and reenter a second order (it can be exactly the same as the
first) and check that the pricing information is correct.
OR
Change the sales order. Select the item; select (item conditions). Add a
new condition type at the bottom (white field): PR00. Scroll up to check
that the pricing information is correct. Save.
D10. How much gross profit is made on the sale? _______________. What are the
taxes? ____________.
D11. Continue the process of delivering and invoicing for the sales order. First,
display your order (you should know how to do this by now) and determine
the availability date of the material. Highlight the item line, press the Schedule
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Lines for Item button, and select the Shipping button. Write down the
material availability date since you need this date as a selection criterion to
create a delivery.
Material Availability Date:
E. Creating an individual delivery

E1. Select Logistics Sales and distribution Shipping and Transportation
Outbound delivery Create.
E2. On the Create Delivery screen, use shipping point 3000, and selection date
based on your material availability date from above. Leave "from item" and
"to item" blank.
E3. Select Enter. The R/3 System branches to the overview screen of the delivery
document.
E4. On the Delivery Create – Overview screen, select the delivery item and
select Item details.
E5. To pick the delivery: On the Delivery Create – Item Details screen, select
Subsequent Functions  Create Transfer order from the top menu. You are
informed that the delivery was changed. Save your data and write down the
delivery document number:
Delivery: ___________________
E6. The R/3 System displays the Create Transfer Order for Delivery Note:
Initial Screen. Use the following data: Warehouse number: 300,
Foreground/background: System-guided.
E7. Select to create the transfer order. Save.
E8. The R/3 System creates a transfer order for picking the corresponding delivery
item. Write Down the Transfer Order Number provided at the bottom of the
screen.
F. Posting Goods Issue
F1. Select Logistics  Sales and Distribution  Shipping and Transportation 
Outbound delivery  Change Single document
F2. On the Change Outbound Delivery screen select . The R/3
System confirms that the delivery has been saved.
G. Billing a Sales Order

G1. Select Logistics  Sales and distribution  Billing.
G2. On the Billing screen, select Billing Document  Create.
G3. If the R/3 System does not automatically propose the delivery document
number, enter the shipping document number of the previously created
delivery.
G4. On the Create Billing Document screen, select Execute.
G5. On the Invoice (F2) Create: Overview of the Billing Items screen, Select
Save.
G6. Write down the Sales Invoice Number provided at the bottom of the screen:
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Invoice number: _______
H. Displaying the Document Flow

4. Select Logistics  Sales and distribution  Sales  Order  Display.
5. On the Display Sales Order: Initial Screen, select Display Document flow
I. Exceeding the Available Inventory
I1. Check Inventory: [MMBE] Logistics  Materials management  Physical
Inventory  Environment  Stock overview. Use the magnifying glass to see
the details.
I2. Now enter a new sales order, for more than the available inventory, perhaps
ask for 100 motorcycles. Does the system accept the order? Accept the
proposal for less than the full amount ordered. Try to deliver it, using the
same procedure as above. (Don’t forget to use the material availability date in
delivering your order.) In your delivery document, note the delivery quantity.
If it is less than what you ordered, try to change it to the correct number.
What is going on?
What happened? ________________________________________________
When was inventory checked? _____________________________________
Name ____________________________________________________
Exercise 7
Controlling Processes in Sales and Distribution
You will be repeating Exercise #6, but this time with three separate materials. We will
put in three different MRP Types as we define these new materials, and this will cause
different schedule line categories to be assigned to their schedule lines. This will cause
differences in the way the orders against inventory are recorded, and differences in the
way and time at which SAP checks for available inventory.
Material Description MRP Type

5661-1XX FLASH DANCE Motorcycle ND – no planning
5662-1XX LIGHTNING MOJO Motorcyle VB – consumption MRP
5663-1XX DESERT STUNNER Motorcycle PD – regular MRP
A. Enter these three new materials, using the same process as used and the same
information that you used in Exercise 6, with the following changes:
Obviously, you have a different material number and description than used in Ex 6.
On step A3, leave MRP1, MRP2, MRP3, and MRP4 selected. Unselect only the
following: Foreign Trade Export, Foreign Trade Import, and Forecasting.
Make all the other changes from exercise #6.
Once that is done, On MRP1, enter the appropriate MRP Type (from the top of the page).
You may be required to enter a reorder level (use 35), a controller (use any of the first 3),
and a lot size (use EX).
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If required (on MRP 2) use schedule margin key of 001, and Planned Delivery time of 7
days.
B. Following Step B in Ex 6, purchase 10 each of the new motorcycles (Flash Dance,
Lightning Mojo, Desert Stunner), all on the same purchase order. Make sure you use
Plant 3000, Storage Location 0001. Otherwise, use the same info as Ex 6.
C. Receive all the material, following Ex 6.
D. Check inventory and orders placed on all three materials using the following:
Logistics>Materials Management>Inventory Management> Environment> Stock>
Stock/Requirements List.
E. Before you start selling the motorcycles, you’d better put the prices into the system.
This we did in Exercise #6, after entering an order and finding it charged the customer $0
for Thunder Road Courier motorcycles. Here we’ll do it first to avoid problems
To put the basic pricing information out there, use the following: [VK31] Logistics
Sales and Distribution Master Data Conditions  Create
Open the Prices folder. Execute Material Price. Click on the page icon:
.
Make sure the default entries are correct (Sales Org 3000, Dist Channel 10). Create a new
entry in the table: Condition Type is PR00, enter your material number, the rate of 6000,
Units for the rate of USD, per 1, UoM (unit of measure) of pc (or piece).
Save.
F. Enter an order, for 5 of each motorcycle, using the same customer, sales area etc. as
used in Exercise #6. What are the Item Categories and Schedule Line Categories for the
three?
Item Cat. Sched. Line Cat.
5661-1XX _______ _______
5662-1XX _______ _______
5663-1XX _______ _______
G. Check inventory and requirements as in D above. What is shown? Why the
differences across material?
H. Enter an order for 45 of each motorcycle. What happens? For which motorcycles are
you able to order the full amount. If shown a delivery proposal, it is because the system
says you cannot confirm delivery on the full amount. Accept the deliver proposal by
clicking the “delivery proposal” button. For which motor cycles were you warned about
the amount of stock available? Why?
Display the document and look at the Schedule Line Detail for each item. Confirmed
Quantity is the quantity IDES has told the customer it can provide for sure.
Confirmed Quantity
5661-1XX __________
5662-1XX __________
5663-1XX __________
Why the different values? ______________________________________________
I. Again, check inventory and requirements as in D above. What is shown? Why the
differences across material?
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J. Try to deliver the accepted orders. Make sure you select all items before you go to
subsequent functions. What happens? How many of each motorcycle can you deliver?
If you can’t get this easily from the delivery document, display the sales document again
and look at the Schedule Line Detail for each item.
Delivered Quantity
5661-1XX __________
5662-1XX __________
5663-1XX __________
Why the different Values? ______________________________________________

Name _________________________
Exercise 8
Entering New Customers
A. Defining a new customer
Here we will define a new customer to the system, and determine other changes to
the master tables and configuration that are necessary to be able to create orders etc. for
that customer.
A1. Start by entering the material in the master tables.
[VD01] Use the following path:
Logistics Sales and Distribution Master Data Business partners
Customer Create Sales and Distribution
A2. You will use customer 3000 as a reference. Give your customer the ID of
“750??” where “??” are the first two digits of your group number. Use the
following data:
Account Group: Sold-to-party
Customer: 750??
Sales Org./Dist. Ch./Div: 3000/10/00
Reference
Customer: 3000
Sales Org./Dist. Ch./Div: 3000/10/00
A3. For your new customer, make the title be "company", give a name, address,
etc. Be sure to fill in country and region. In the Control Data, select
GA0000000 for Jurisdiction Code. Choose the appropriate transportation
zone. Under Marketing, choose an appropriate industry by looking at the
choices. Put in at least two unloading points (such as side door, loading dock
#3, etc.), with an appropriate customer factory calendar. Put in at least one
contact person, with an appropriate function. On the sales area view, you
might as well use the same info as copied from customer 3000, since we
haven't yet put in our new sales areas. On the taxes sales area view, you have
to go row by row (use the green check mark to get to the next row). Put the
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tax codes as follows: 1, 0, 0, 1. For simplicity, make all the business partners
the same name, though you could change some of these (extra entries would
be required.)
A4. Save the customer.
B. Putting in an order
Unfortunately, before you can put in an order, you’ll need to buy some more
motorcycles. Use the guidance from Exercise 6 to put in a purchase order of 50
Desert Stunner Motorcycles (5663-1XX), using the same vendor as in Exercise 6.
(Vendor 3100, Purchasing Org 3000, Purchasing Group 021, Company 3000,
Plant 3000, net price 3500, USD currency. Then, again using Exercise 6 as
guidance if necessary, put in a goods receipt to alert SAP that the motorcycles
have been delivered and put into your inventory.
One more step, before selling the motorcycles – if you haven’t done it already, we
need to put in the prices. To put the basic pricing information out there, use the
following: [VK31] Logistics Sales and Distribution Master Data Conditions
 Create
Open the Prices folder. Execute Material Price. Click on the page icon:
.
Make sure the default entries are correct (Sales Org 3000, Dist Channel 10). Create a
new entry in the table: Condition Type is PR00, enter your material number, the rate of
6000, Units for the rate of USD, per 1, UoM (unit of measure) of pc (or piece).
Save.
Now enter a new order for Desert Stunner Motorcycles using your new customer.
After you have saved it, display the order and find the material availability date.
B1. Select Logistics Sales and Distribution Sales Order Create
B2. Enter your new customer as the sold-to-party, a made up purchase order
number (anything will do), your new material, and a quantity of 2. You can
check your entries by the clicking the green check mark or hit enter.
B3. Save: you get a screen indicating a "Legal Control: Issue Error Log -- Item".
Click on the item shown and then the magnifying glass for details. What this
complicated array of errors amounts to is that the system cannot determine the
plant, and so it can't determine a lot of other things as well. Click on the green
left arrow twice. Choose "Edit". Double click on the plant line. Enter the plant
number (3000). Continue by clicking on Edit next data.
B4. Check the material availability date; remember you need to select the item,
click on Schedule Lines, then click on the item and click on the Shipping Tab.
B5. Record the availability date: ________________
C. Creating an individual delivery

E9. [VL01N] Select Logistics Sales and Distribution Shipping and
Transportation Outbound Delivery Create  Single Document  With
Reference to Sales Order.
E10. On the Create Outbound Delivery With Order Reference screen, use
shipping point 3000, and selection date based on your material availability
date from above. Leave "from item" and "to item" blank.
45/8
E11. Select Enter. The R/3 System branches to the overview screen of the delivery
document.
E12. To pick the delivery: On the Delivery Create: Overview screen, select
Subsequent Functions  Create Transfer order from the top menu. You are
informed that the delivery was changed. Save your data and write down the
delivery document number:
Delivery: ___________________
E13. The R/3 System displays the Create Transfer Order for Delivery Note:
Initial Screen. Use the following data: Warehouse number: 300,
Foreground/background: System-guided. Enter.
E14. Select to create the transfer order. The item is moved from
“Active Worklist” to “Processes items”. Save.
E15. The system creates a transfer order for picking the corresponding delivery
item. Write down the Transfer Order Number provided at the bottom of the
screen.
D. Posting Goods Issue

D1. [VL02N] Select Logistics  Sales and Distribution  Shipping and
Transportation  Post Goods Issue  Outbound Delivery Single Document
D2. On the Change Outbound Delivery screen select ; the
delivery has been saved.
E. Billing a Sales Order
G7. Select Logistics  Sales and Distribution  Billing  Billing Document 
Create. If the R/3 System does not automatically propose the delivery
document number, enter the shipping document number of the previously
created delivery.
G8. On the Create Billing Document screen, select Execute.
G9. On the Invoice (F2) Create: Overview of the Billing Items screen, Save.
G10. Write down the Sales Invoice number provided at the bottom of the screen:
Invoice number: _______
Did you get anything unusual in the response at the bottom of the screen?
F. Displaying the Document Flow

F1. Select Logistics  Sales and distribution  Sales  Order  Display.
F2. On the Display Sales Order: Initial Screen, select Display Document
Flow.
F3. Look at the document flow. Do you recognize that anything is different
from your previous complete document flows? You can compare it with
the document flow for order 7301 if you wish. What is going on here?
G. Adding a Customer to the Accounting Master Tables
The SAP system has produced the invoice, but could not figure out which account
receivables account to make the entry to, so it made no accounting entry; and
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subtly suggested that something was wrong that you might like to correct, even if
it allowed you to send out the invoice.
G1. To put the customer on the accounting master tables, use the following:
Accounting  Financial Accounting  Accounts Receivable  Master
records  Create.
G2. Use the following as your reference: customer 3000, company code 3000.
G3. What should the account group be? SAP assumes that all the relevant
business partners are the same as the sold-to-party unless you tell it
something different.
G4. Save your entry. Your customer has been created for company code 3000.
G5. Now you want to get that missing accounting entry taken care of. Use
Logistics  Sales and Distribution  Billing  Billing Document
Change. Enter your invoice number.
G6. From the top menu, select Billing Document/Release To Accounting.
G7. To see the accounting entry you can click on the accounting button, then
double click on the accounting document.
G8. Now redo the document flow for your sales order. You should see the full
set of entries now. Future documents for this customer will work fine.
47/8

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MIST 5600 – Spring 2003 SAP Exercise 1 – Sales and Distribution

 Enter IN for Inquiry type.

 Enter your sales organization in the Sales organization box.

Enter picked materials on delivery document

Sales and Distribution Information Sheet

Creating a Sales Order

Sold-to party 3000

Purch. Order no. C-BU-"Your User Number"

PO date Current date (mm/dd/yyyy)

Req. deliv. date Current date + 3 working days

Pricing date Current date

Field Name Data Item CODE

Billing a Sales Order

corresponding accounts and amounts that have been posted in Financial

Displaying the Document Flow

Preparing for Make-to-Order Order Processing:

Don't forget the "Copy From" information above!

1400-710-1XX Raw Material 1400-710

B – Creation of the bills of material.

B1. Logistics Production Master Data Bills of Material Bill of

B2. Select the button <copy from>

C1. Logistics Production Master data Routings Routings Standard

C2. Select the Header icon: .

Material Rate Unit Per UoM

(UoM is unit of measure.)

Material PO Quantity Net Price Plant Storage

F1. Logistics Materials management Inventory management Purchasing

F2. Enter the Purchase Order number.

A. Creating a Sales Order

A1. Select Logistics  Sales and Distribution  Sales  Order  Create.

Order type OR Standard Order

Sales organization 1000 Frankfurt/Germany

Distribution channel 12 Sold for resale

A3. Confirm your entries .

Sold-to party 1900 J & P, Duesseldorf

PO number GTD-1XX XX – Your group number

PO date Current date MM/DD/YYYY

Req.deliv.date Current date + 2 weeks

Pricing date Current date

Material 1400-700-1XX XX – Your group number

Order quantity 1 (piece)

Order Your production order number,

B3. Press Enter to confirm.

Personnel no. 1276 (Dirk Raudies)

Confirm. text "Completed early, as requested" (optional)

B5. Select Final conf. [DON'T OMIT THIS!]

Order Your production order number

B10. Confirm your entry.

C. Newly Determining the Availability of the Sales

Whse number 010

Delivery Your document

Document number Delivery document number

F3. Confirm your entry.

G. Displaying the Document Flow

H1. Select Accounting  Financial Accounting  Accounts receivable  Account 

Document date Today’s date

Company code 1000

Posting date Today’s date

In the section Bank data, enter: