BPI - I - Student Book PDF

BPI - I Student Book
Business Process Integration - I

Student Books
rgThe Rushmore Group, LLC

ECC 6.0 January 2008
Business Process
Integration I
Presented by
The Rushmore Group, LLC
Welcome
• Introductions
– Student
– Instructor
• Course schedule
• Classroom materials
• Housekeeping issues
January 2008 © SAP AG and The Rushmore Group, LLC 2008 2
Introductions
• Your name…
• My background [briefly]…
• Your SAP role/experience/courses
attended…
• Your objectives/expectations with respect to
this course...
© SAP AG and The Rushmore Group, LLC 2008 1

Course Materials
• Business Process Integration Slides

• Business Process Integration Exercises
Schedule of Exercises
Day One – 1 to 20
Day Two – 21 to 68
Day Three – 69 to 106
Day Four – 107 to 151
Day Five – 152 to 190
An Introduction to the
Basics of SAP’s R/3
Client / Server
Integrated Business
Solution

SAP
• Systems, Applications, and Products in Data

Processing (SAP)
• Name of the company
– SAP AG
– SAP America
• Name of the software
– SAP R/2 – Mainframe version
– SAP R/3 – Client/Server version
SAP AG
• Founded in Germany (1972)

• World’s third largest software provider
• World’s largest provider of Integrated Business
Solutions software
• Company stock trades on the Frankfurt and New
York exchanges
SAP R/3
• World-wide usage
• Designed to satisfy the information needs for
business sizes (small local to large all
international)
– Multi-lingual
– Multi-currency
• Designed to satisfy the information needs for all
industries (industry solutions)

SAP R/3
• Enables a company to link it’s business processes

• Ties together disparate business functions
(integrated business solution)
• Helps the organization run smoothly
• Real-time environment
• Scalable and flexible
Integrated Business Solutions

Software Vendors
• SAP
• Oracle (Peoplesoft and J.D. Edwards)
• Microsoft – Great Plains, Axapta, Solomon
• IBM
• BAAN
Architecture
• Central relational database (e.g., Oracle,

Informix, Microsoft SQL and many others)
• Client/Server – three-tiered
• ERP Component – Oriented towards common
identifiable business modules
– (FI, MM, SD, CO, PP, HR)
• Add-ons:
– Customer Relationship Mgmt (CRM)
– Supply Chain Mgmt (SCM)
– Product Lifecycle Mgmt (PLM)

Relational Database
• Tables: Defines and links thousands of tables of

information (25,000+)
• Advantages
– Consistent and accurate data
– Common definitions for terms
– Shared, but restricted usage (e.g., profiles)
– Eliminates data redundancy
Client/Server Environment
• Client
– Software/hardware combination that can make a
request for services from a central repository of
resources
• Server
– Software/hardware combination that can provide
services to a group of clients in a controlled
environment
Three-Tier SAP Structure
• GUI – Graphical User Interface or Web

Interface
• Application server (one or many)
• Database server (one single location)

SAP Enterprise System
PCs, Laptops, etc.

Browser Client
Network
Web Server
Internet
Presentation Transaction
Server
Application Application
Servers
Database
Database
mySAP Business Suite
mySAP PLM
mySAP mySAP mySAP

SRM ERP CRM
mySAP SCM
SAP NetWeaver
mySAP ERP Modules
SD FI
Sales and Financial
Distribution Accounting
MM CO
Materials Controlling
PP
Production
SM Planning
Mgmt.
R/3 AM
Fixed Assets
Mgmt. EC
Service Client / Server Enterprise
Mgmt. Controlling
QM Integrated Business PS
Quality
Project
Mgmt.
PM Solution WF System
Plant Maintenance Workflow
HR IS
Human Industry
Resources Solutions

Business Modules
• Collections of logically related transactions

within identifiable business functions
– MM (“Buy”)
– PP (“Make”)
– SD (“Sell”)
– FI and CO (“Track”)
– HR
SAP R/3 Basics
• Instance – each install of the SAP R/3 software

on an individual application server
• Configurable – each instance can be

distinctively configured to fit the needs and
desires of the customer (within limits)
• Most of the infrastructure decisions, including

configuration decisions, occur during project
implementation
Configuration
• The process of tailoring SAP software by

selecting specific functionality from a list of those
supported by the software, very much like
setting defaults (e.g., Word, Access)
• DOES NOT involve changes to the underlying

software code

Programming Code Modifications
• Changes to the delivered code
• ABAP/4 – Advanced Business Application

Programming (ABAP)
• This should be done sparingly and carefully as it

can make migration to new versions of the
software much more difficult
SAP R/3 Document Principle
• Each business transaction that writes data to the

database creates a uniquely numbered
electronic document
• Each document contains information such as
– Responsible person
– Date and time of the transaction
– Commercial content
• Once created, a document can not be deleted
from the database
Review
• SAP and SAP R/3

• Integrated Business Solution
• Architecture
• Client/Server Software
• Relational Database
• SAP R/3 Modules
• Configurable Software
• Programming Code Modifications – Be Careful!!
• SAP R/3 Document Principle

Unit 1Unit 1
Business Processes,
Integration, and
Configuration in the
SAP R/3 Environment
Two Differing Learning Approaches
• Standard SAP training

– Level 1: Introductory
– Level 2: Business processes
– Level 3: Configuration
• Our Approach
– Cross functional
– Understand business processes and their
relationships to SAP's organizational structure
– Highlight integration/configuration!!
Learning by Creating a Model

Business
• Understanding business processes and their

integrative nature
• Understanding SAP organizational structures
• Combining business processes and SAP
organizational structure (i.e., configuration)
• Test the newly configured system
• View system outputs - statistics, reports, and
graphics

Pen Incorporated
• Start-up company in the promotional pen

business
• Initially buys and re-sells different lines of
promotion pens
• Sells to both wholesale and retail – procure and
distribute
• Later acquires a production facility to
manufacture its own product – produce and
distribute
SAP R/3 and

Business Processes
- Overview -
Pen Incorporated
Procure for Sales Order
Pre-Sales Sales Order Accounts

Delivery Billing
Activity Receivable
Availability Goods to
Check Delivery
In Plant or Inventory General

Inventory Warehouse Postings Ledger
YES Accounts
NO Goods from
Purchase Order
Purchase Purchase Goods Invoice Accounts

Requisition Order Receipt Receipt Payable

Pen Incorporated
Produce for Sales Order
Pre-Sales Sales Accounts

Delivery Billing
Activity Order Receivable
Availability Goods Issued

Check to Delivery
In Plant or Inventory General

Inventory Warehouse Postings Ledger
YES Accounts
Issue Goods
NO to Production Goods from
Order Production Order
Planned Production Completion Confirmation Accounts

Order Order Payable
SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Logistics
• Materials Management (MM)

• Sales and Distribution (SD)
• Production Planning (PP)
• Quality Management (QM)
• Plant Maintenance (PM)
• Service Management (SM)

Accounting and Finance
• Financial Accounting (FI)

• Controlling (CO)
• Enterprise Controlling (EC)
• Fixed Asset Management (AM)
• Project Systems (PS)
Human Resources
• Human Resources (HR)
Materials Management (MM)
SD FI
Sales and Financial
MM CO
PP
Production
SM Planning
Mgmt.
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions

Components of Materials Management
Foreign
Valuation Trade/
Customs
Logistics
Service
Invoice
Master
Verification
Materials
Product
Management Purchasing MRP
Catalog
(MM) Material
Service
Entry
Master
Sheet
Inventory Physical
Mgmt. Inventory
Integration
Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
Vendor
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Sales and Distribution (SD)
SD FI
Sales and Financial
MM CO
PP
Production
SM Planning
Mgmt.
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions

Components of Sales and Distribution
Shipping
Transport
Sales
Sales
Information
Support
Sales and System
Master
Distribution Data
Billing
(SD) Foreign
Sales
Trade
Credit
Mgmt.
Integration
Sales Order Process
(Order-to-Cash)
Sales Order Check

Entry Availability
Pick
Materials
Receipt of Pack
Customer Payment Materials
Invoice
Customer Post Goods
Issue
Financial Accounting (FI)
SD FI
Sales and Financial
MM CO
SM
PP
Production
Planning
Mgmt.
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions

Components of Financial Accounting
Accounts
Receivable
Financial General Fixed

Accounting Ledger Assets
(FI) Accounts
Banks
Payable
Special
Purpose
Ledger
Integration
Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
Vendor
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Integration
Sales Order Process
(Order-to-Cash)
Sales Order Check

Entry Availability
Pick
Materials
Receipt of Pack
Invoice
Customer Post Goods
Issue

SAP R/3 Configuration
- Overview -
SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Business Process Integration
• “The Stool”
– Components
• Organizational Data
• Master Data
• Rules
• Transactions

FI MM SD
Master
Org Data
Rules
Data
FI FI
FI
MM MM
MM
SD SD
SD
Organizational Data
• A hierarchy in which the organizational units in

an enterprise are arranged according to tasks
and functions
• Are static data and are rarely changed
• The definition of organization units is a
fundamental step, it is a critical factor in how the
company will be structured
Master Data
• Master data is relatively fixed

– Material master data
– Vendor master data
– Purchasing information record
– General Ledger master data
• Before making the master data configurations,
you must have completely defined the
organizational structures

Rules
• Defines the parameters for Master Data and

Transactions
• Determines functionality for Master Data and
Transactions
• Relatively fixed
• Changes as policy changes
Transaction Data
• Includes internal and external exchanges that

describe business activities
• Unlike master data, aggregate transactional data
is dynamic – each transaction is unique
Functional Areas – Where and When
• Business Process Integration I

– Financial Accounting (FI)
– Materials Management (MM)
– Sales and Distribution (SD)

Functional Areas – Where and When
• Business Process Integration II

– Financial Accounting (FI)
– Controlling (CO)
– Materials Management (MM)
– Production Planning (PP)
– Quality Management (QM)
– Sales and Distribution (SD)

Unit 2
The Basics
- Navigation -
Overview
• Logging on
• SAP R/3 screens
• Basics of data entry
• Working with multiple sessions
• Reporting
• On-line help and system messages
• Setting user defaults
• Logging off
SAP R/3 System Standard Features
• Logging on
• SAP R/3 screens
• Reporting
• Logging off

Logging On - SAP R/3 Initial Screens
Logging On - The Client
• This is a numeric field

• This number defines a
whole business entity
Logging On - User
• Enter the name of

the SAP user
• Users of SAP system
are client-specific
– User identification on
one client will only allow
access to that client on
that server

Logging On - Password Rules
• Letters
• Numbers
• Easy to remember
• 3-8 Characters long
• No 3 Characters can
be the same
• Do not start with a ?
or an !
• Do not use previous
5 passwords
Logging On - Language
• SAP supports multi-

national character sets
and languages on the
same system, at the
same time
• Default languages are
English and German
Logging On - Data Record
Table
Valid Valid
Client User Password From To
400 STEVE ******** 1/1/2000 12/21/2000
400 BOB ******** 1/1/2000 12/21/2000
400 JERRY ******** 1/1/2000 12/21/2000
410 STEVE ******** 1/1/2005 12/31/2008
410 BOB ******** 1/1/2005 12/31/2008
410 JERRY ******** 1/1/2005 12/31/2008

SAP R/3 System - Standard Features
• Logging On
• SAP R/3 Screens
• Basics of Data Entry
• Working with Multiple Sessions
• Reporting
• On-line Help and System Messages
• Setting User Defaults
• Logging Off
SAP R/3 Screens - The Topics
• Easy Access desktop

• System menus
• System navigation
• Transaction name
• Transaction icons
• Transaction work area
• Status messages
SAP R/3 Screens - Easy Access Desktop
System Menus
System Transaction
Navigation Name
Transaction
Icons
Transaction
Work Area
Status Messages

SAP R/3 Screens - Easy Access Desktop
Favorites
Folder and
Sub-Folder
Transactions
SAP R/3 Screens - System Menus
SAP R/3 Screens - System Navigation

Enter
el
n
ut
Exit
on
ns
Save
Back
Print
ons
ield
icons
sessio
Canc
hortc
Optio
ic
and F
ic
Help
ktop s
Scroll
xpand
a new
Comm
a des
Find/E
Create
Create

SAP R/3 Screens - Transaction Name
SAP R/3 Screens - Transaction Name
SAP R/3 Screens - Transaction Icons
• Screen or view dependant

– (e.g. materials master will differ from sales order
entry will differ from the main menu)

SAP R/3 Screens –

Transaction Work Area
SAP R/3 Screens –

Status Messages
System Message
System Information
SAP R/3 Transaction Screen
Tabs
Header
Line Item
Detail
Line Item

SAP R/3 Master Data Screen
Tabs
• Logging on
• SAP R/3 screens
• Reporting
• Logging off
Basics of Data Entry
• Using menus
• Using transaction codes
• System > status
• Using /n
• Multiple sessions
• Using /o

• Types of entry fields

• Moving between fields
• Radio buttons and check boxes
• Possible entry fields
• Match-codes
• Saving data
• Canceling data
Cancel
Save
Tab Entry (Input) Field
Check Box
Pull Down
• There are three types of entry fields:

– Required
– Default entry
– Optional entry field

• Logging on
• SAP R/3 screens
• Reporting
• Logging off
Working with Multiple Sessions
Opens another session
Working with Multiple Sessions
• An SAP session is
a window in which
the user may
perform a particular
task
• Users may have up
to six sessions
open at one time

• Logging on
• SAP R/3 screens
• Reporting
• Logging off
Reporting
• Three basic steps to running a report

– Access the report
– Enter selection criteria
– Execute the report
Reporting
Access Selection
Execution

• Logging on
• SAP R/3 screens
• Reporting
• Logging off
On-line Help
On-line Help
• Help on screen fields - F1

– Extended help
– Reference information
– Technical information
• Displaying possible entries - F4
• Using the Help menu
– Extended help
– R/3 library
– Getting started

On-line Help
F1 - Key
F4 - Key
System Messages
• E = Error
– An invalid entry has been made
– The cursor moves to the field where the
error has occurred
• W = Warning
– A possible error has been made
– The user can continue without changing
• I = Information
– Feedback from the system
• Logging on
• SAP R/3 screens
• Reporting
• Logging off

Setting User Defaults
• Logging on
• SAP R/3 screens
• Reporting
• Logging off
Logging Off
• System > logoff

• Exit button
• Control box
For security purposes it is important to log off SAP

whenever you leave your PC. Your user name is
linked with all transactions you perform providing an
audit trail.

BPI – I - Exercise Purchase Purchase

Requisition
Roadmap Order
Check Run MRP

Availability
Goods
Receipt
Procurement
Process
Sales Order
Entry Invoice
Pick
Receipt
Sales Order Materials
Process
Payment
to Vendor
Receipt of
Payment
Post Goods
Invoice Issue
January 2008 Customer © SAP AG and The Rushmore Group, LLC 2008 100
Sales Process Exercise

Part 1
Order-to-Cash
SD FI
Sales and Financial
MM CO
PP
Production
SM Planning
Mgmt.
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions

Sales Order Process

(Order-to-Cash)
Sales Order Check

Entry Availability
Pick
Materials
Receipt of Pack
Invoice
Customer Post Goods
Issue
Unit 2, Group 1 Exercises
1. Logging on the SAP System

2. Create Vendor Master
3. Create Material Master
4. Create Customer Master
5. Create Customer Quotation
6. Create Sales Order with Reference to Customer
Quotation
7. Check Stock Status
Procurement Process
Exercise
Procure-To-Pay

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
3-Way Vendor
Match
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
8. Run Materials Requirement Planning

–Single Item, Single Level
9. Convert Purchase Requisition to
Purchase Order
10. Create Goods Receipt
11. Create Invoice Receipt from Vendor
12. Post Payment to Vendor

Sales Process Exercise

Part 2
Order-to-Cash
SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Sales Order Process

(Order-to-Cash)
Sales Order Check

Entry Availability
Pick
Materials
Receipt of Pack
Invoice
Customer Post Goods
Issue

13. Create Delivery Note for Sales Order

15. Pick Materials on Delivery Note
16. Post Goods Issue
18. Bill Customer
19. Post Receipt of Customer Payment
20. Review Document Flow

Unit 3
Financial Accounting
(FI)
- Overview -
SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Unit 3, Part 1 – Overview
• Financial Accounting (FI)

– Goals and Objectives
– Target Audience
– Components
• Managerial Accounting (CO)
– Goals and Objectives
– Target Audience
– Components
• Comparisons and Relationships

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Goals and Objectives
• Financial accounting is designed to collect all of

the data needed to support the preparation of
financial statements for external users
Target Audience
Internal External
• Executives • Legal Authorities
• Senior Management • Banks
• Accounts • Auditors
• Administration Staff • Shareholders
• Employees • Insurance
• Taxing Authorities
• Media
• Financial Analysts

Components of Financial Accounting
Accounts
Receivable
Financial General Fixed

Accounting Ledger Assets
(FI) Accounts
Banks
Payable
Special
Purpose
Ledger
Controlling (CO)
SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Goals and Objectives
• Managerial accounting is designed to collect

data for the preparation and analysis of reports
for use by internal users

Target Audience
• Executives
• Senior Management
• Department Managers
• Controllers
• Cost Accountants
Components of Managerial Accounting
Internal
Orders
Cost
Profitability
Element
Analysis
Acct
Activity
Controlling Based
(CO) Cost
Costing
Profit
Center Center
Acct Acct
Product
Cost
Controlling
Comparison
Financial Accounting Managerial Accounting

• External Accounting • Cost Center Accounting
– Balance Sheet • Profit Center Accounting
– Profit & Loss Statement • Product Costing
• Legal Requirements • Profitability Analysis
• Standards • Different Valuations
• Flexibility

Comparative Reporting
Liquidity
Calculation Retained
Earnings
Financial Accounting (FI) Balance
Report
Sheet
Income
External Statement
Reporting
Cost
Center
Reports
Product
Managerial Accounting (CO) Costs Profit
Reports Profit Margin
Center
Internal Reports
Reporting
Interrelated and Closely Connected
(FI) Transaction
Document Income Statement Bal. Sheet
Supplies Exp. Bank
Amount
100 100
G/L Account #
Cost Center
1900012432 Financial Accounting
(CO) Transaction Cost Center

Document
Cost Center 100
Cost Element
20000657 Controlling
(FI)
- The Basics -

Unit 3, Part 2 – Overview
• General Ledger
• Chart of Accounts
• Balance Sheet
– Assets
– Liabilities
– Equity
• Income Statement
– Revenues
– Expenses
General Ledger
• The General Ledger provides a complete record

of all "acceptable" business transactions from
the viewpoint of an accountant
• An acceptable business transaction has the
following traits
– Affects the financial position of the entity
– Measurable in a currency
– Affects at least two accounts
– Assets = Liabilities + Equity
– Debits = Credits
Chart of Accounts
• The foundation for the General Ledger is the

Chart of Accounts
• A Chart of Accounts contains a complete list of
all of the accounts utilized in the General Ledger
for a given company
• Financial accounting reports are prepared from
the balances contained in the General Ledger’s
Chart of Accounts

Chart of Accounts (continued)
• There are five types of accounts contained in a

Chart of Accounts
– Assets
– Liabilities
– Equity
– Revenues
– Expenses
• There are two primary accounting reports
prepared from the General Ledger Chart of
Accounts
– Balance Sheet
– Income Statement
Balance Sheet – Assets
• Things of value that a company owns or controls

that accountants have agreed to measure in
monetary terms.
• Examples of these accounts include:
– Cash
– Accounts receivables
– Plant and equipment
– Inventory
Balance Sheet – Liabilities
• Things that a company owes or must provide

services in order to settle that accountants have
agreed to measure in monetary terms.
• Examples of these accounts include:
– Accounts payable
– Notes payable
– Bonds payable
– Unearned revenue

Balance Sheet – Equity
• Equity is simply the mathematical difference

between assets and liabilities.
• Includes the monetary amounts collected with
respect to all preferred and common stock
transactions, the aggregate net income reported
since organization of the company, and a
reduction for dividends that have been paid to
stockholders.
Balance Sheet
Income Statement – Revenues
• The monetary amounts collected from

customers in settlement for goods purchased
from our company or services rendered by our
firm to them during the current fiscal year.

Income Statement – Expenses
• The monetary amounts paid to vendors in

settlement for goods purchased by our company
or services rendered to our firm by other
companies during the current fiscal year.
Income Statement
(FI)
- Organizational Structures -


Org Data
FI
Organizational Data

and functions
Unit 3, Part 3 – Org Structures
• Organizational Structures
– Client
– Company
– Chart of accounts
– Company code
– Credit control area

Client
• Highest hierarchical level in an SAP

environment
• A complete database containing all the
tables necessary for creating a fully
integrated information system
• Master records are created at the client
level
Client
Company
• Consolidated financial statements are created at

the company level
• A company can include one or more company
codes
• All company codes must use the same chart of
accounts and fiscal year
• Company is not required in the definition of an
enterprise (optional)

Organizational Structure
Client
Company
Company Code
• A legally independent entity

• The smallest organizational unit for which
accounting can be carried out
• Business transactions are processed at this level
• Accounts are managed at this level
• Legal financial statements, such as the balance
sheet and the income statement, are generated
at this level using the General Ledger balances
Client
Company
Company
Code

Chart of Accounts
• A listing of the accounts (assets, liabilities,

equity, revenues, and expenses) that are
contained in the General Ledger
• A chart of accounts must be assigned to every
company code in order to create the General
Ledger for that company
• Several company codes can use the same chart
of accounts
Chart of Accounts
United States Canadian

Chart of Chart of
Accounts Accounts
Company Company Company Company

Code 010 Code 038 Code 110 Code 117
Client
Chart of
Company
Accounts
Company
Code

Fiscal Year Variant
• Specifies the accounting fiscal year for reporting

purposes
• Special periods are created to aid in the
quarterly or year-end adjusting process
completed prior to preparing financial
statements
• A single fiscal year variant is assigned to each
company code
Client
Chart of Fiscal Year

Company
Accounts Variant
Company
Code
Credit Control Area
• An organizational unit or area of responsibility

created to control customer credit limits
• A company code is assigned to one and only
one credit control area
• Multiple company codes can be assigned to one
credit control area

Client

Company
Accounts Variant
Credit Control
Area
Company
Code
Client

Company
Accounts Variant
Credit Control
Area
Company
Code
Consolidation and Business Areas
Company
• A company is an organizational unit in Financial
Accounting which represents a business organization
according to the requirements of commercial law in a
particular country.
Business Areas
• A unit in an enterprise that groups product and market
combinations as homogeneously as possible for the
purpose of developing unified business policy.

Optional Organizational Structures
GM Corp.
Client
Chart of Accts
GM–Corporate General Corporate
Credit CA Motors Fiscal Year Var.
Consolidation of Company Codes
Chevrolet GMC Cadillac
Business Areas
Cars Cars
Trucks Trucks Trucks

Client 100
Credit Control Pen Inc. Fiscal Year

Area Variant
Chart of
Accounts
Company
Code
Unit 3 – Exercises
21. Create Company Code

22. Create Chart of Accounts
23. Assign Company Code to Chart of Accounts
24. Assign Company Code to Fiscal Year Variant
25. Create Credit Control Area
26. Assign Company Code to Credit Control Area
27. Assign Permitted Credit Control Area to
Company Code

Unit 4
Material Management
(MM)

Org Data
MM
Organizational Data

and functions

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Unit 4 – Overview
• Unit Concept
• Purchasing and SAP R/3
• Procurement Process
• Organizational Structures
• Organizational Relationships
• Warehouse Management
Unit Concept
• The purchasing process involves the acquisition of

goods and services to support the creation of
goods and services in the organization
• In this unit the structure required for the purchasing
process is presented

Purchasing and SAP R/3
• The purchasing process exists in the Materials

Management (MM) module of SAP R/3 and
Finance (FI) module
• The structure includes elements of the Materials
Management (MM) and Finance (FI) modules
• Master data for the purchasing process exists in
the (MM) and (FI) modules
• The purchasing process can and does interface
with the Production Planning (PP), Warehouse
Management (WM), and Quality Management
(QM) modules
Components of Materials Management
Foreign
Valuation Trade/
Customs
Logistics
Service
Invoice
Master
Verification
Materials
Product
Management Purchasing MRP
Catalog
(MM) Material
Service
Entry
Master
Sheet
Inventory Physical
Mgmt. Inventory
Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
3-Way Vendor
Match
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt

Organizational Structures
• Plant
• Valuation Area
• Storage Locations
• Purchasing Organizations
• Purchasing Groups
Plant
• Lowest valuation area

• Organizational level where Material
Requirements (MRP) runs
• Generally used to describe a production site, a
distribution center or centralized warehouse
• May be a physical or logical unit
Valuation Area
• The valuation area determines at which level a

material is valuated (inventory value is
established)
• SAP R/3 allows valuation at the company code
or plant level, but recommends valuation area
be set at the plant level

Storage Location
• Subdivision of a plant
• Where materials are managed (inventory
management)
– Raw Materials
– Maintenance, Repair, and Other (MRO)
– Finished Product
• May be a physical or logical unit
Organizational Relationships
• Plant/Storage Location
Plant P001
Storage Location Storage Location

10 - Inventory 20 - Quality
Purchasing Organization
• Organizational unit responsible for the

procurement of materials and services.
• SAP requires that purchasing organizations be
assigned at the plant level
• A purchasing organization can be assigned to
more than one plant
• A purchasing organization can be assigned to a
company code

• Plant/Purchasing Organization (1)
Plant P001
Purchasing Purchasing
Organization – P001 Organization – P002
One plant – multiple purchasing

organizations
(Continued)
Plant P001 Plant P002
Purchasing Purchasing
Organization – P001 Organization – P002
Each plant has its own purchasing

organization
(Continued)
Purchasing
Organization – P001
Plant – P001 Plant – P002
One purchasing organization for

multiple plants

(continued)
Purchasing
Company Code Company Code

C001 C002
One purchasing organization for multiple

company codes
Purchasing Group
• Responsible for specified purchasing activities

• Often used to identify individual buyers
• Used for reporting
• Purchasing Organization/Purchasing Group
Purchasing
Purchasing Group Purchasing Group

001 002

Company Code
C001
Purchasing
Plant P001
Purchasing Storage Location Storage Location

10 - Inventory 20 - Quality
Group
001
Warehouse Management
• Not required for the purchasing functionality of

SAP R/3
• A separate module in the SAP R/3 environment
• Many functions and elements can be performed
outside of the module
Warehouse Management Elements
• Receiving, identifying and sorting goods

• Placing goods into storage bins
• Taking inventory
• Monitoring and inspecting goods in storage
• Preplanning distribution of materials
• Picking and accumulating orders
• Packaging, loading and shipping goods

Warehouse Management Relationships
Company C001
Inventory Company Code
Management Plant P001 Plant P002
(MM) Plant
Storage Loc. 10 Storage Loc. 20 Storage Loc. 30 Storage Loc. 40
Storage Loc.
Warehouse 1 Warehouse 1
Warehouse
Aisle 1 Aisle 2 Aisle 3 Aisle 1 Aisle 2

Aisle
Rack 1 Rack 1 Rack 1
Storage Rack
Warehouse ABC123
Quantity
Management (WM)
28. Verify Valuation Area

29. Define Plant (P_ _ _)
30. Define Storage Locations for Inventory and
Quality
31. Define Purchasing Organization
32. Create Purchasing Groups
33. Assign Plant to Company Code
34. Assign Purchasing Organization to Company
Code
35. Assign Purchasing Organization to Plant
36. Setup Parameter ID

Unit 5
- Rules (Internal Controls) -
Rules

Transactions
Transactions
Unit 5 – Rules
• Rules
– Account groups
• BS – Balance Sheet Account Group
• PL – Income Statement Account Group
• RA – Reconciliation Account Group
– Field status variant
• Field status groups
– Fiscal year variant

Account Groups
Chrt/accts Acct group Description From To

CHRT BS Balance Sheet 100000 399999
CHRT PL Income Sheet 400000 999999
CHRT RA Reconciliation 110000 310000
Account Groups
• Identifier that controls which fields must be entered

when an account is created
• Determine a valid number interval for each of the
groups (types) of General Ledger accounts that
have common attributes
• Must be created before General Ledger Chart of
Accounts master records can be created
• You must assign each account to an appropriate
account group
Account Groups
Account Group BS
Account control
Account management
Document entry
Bank/financial details
Interest calculation
Joint venture
Account control Suppress Req. entry Opt. entry Display
Currency
Tax category
Reconciliation account
…

Field Status
• Field status controls how the data will be entered

for a field when an accounting master record is
being used in a transaction
• Determining whether a field is required, optional,
suppressed, or display only
• Field status controls are also relevant to a
specific activity — create, change, or display
Field Status Variant
Fld status groupText

ZALL All Accounts
ZBSA Balance Sheet Accounts
ZEXP Expense Accounts
ZGRI Material Management (GR/IR) Accounts
ZRCN Reconciliation Accounts
ZREV Revenue Accounts
Field Status Variant
Field status variant (V000) - Group ZBSA - Balance Sheet Acct.
General data
Additional account assignments
Materials management
Payment transactions
Asset accounting
Taxes
...
General Data Suppress Req. entry Opt. entry Display
Assignment number
Text
Invoice reference
…

So What is a Reconciliation Account?
• Postings to sub-ledgers (such as accounts

receivable or accounts payable) are
automatically concurrently posted to the
corresponding reconciliation account in the
General Ledger
• In this way, the General Ledger is automatically
updated and remains in balance with the
customer and vendor individual account totals
37. Create Account Groups

38. Define Retained Earnings Account
39. Review Field Status Variant
40. Assign Company Code to Field
Status Variant

Unit 6
- Master Data -

Master
Data
FI
Master Data

• Before making the master data configurations,

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Unit 6 – Overview
• General Ledger Master Data

– Chart of Accounts Data
– Company Code Data
– Reconciliation Accounts
• Accounts Receivable
• Accounts Payable
• Goods Receipt/Invoice Receipt
• General Ledger Account Balances
General Ledger – Master Data
• A unique master record is created for each

General Ledger account
• General Ledger accounts are created at the
client level
• Business transactions are posted to the portfolio
of General Ledger accounts made available to a
company through the assignment of a specific
Chart of Accounts

General Ledger – Master Data

(continued)
• Contains control information for:

– Data entry
– Data processing
• Specifies the account type:
– Balance sheet
– Income statement
General Ledger
Organization of the Data
• Contains one or more Chart of Accounts specific

information areas
• Contains one or more Company Code specific
information areas
• In this way, a General Ledger master account
can be shared by several combinations of
Charts of Accounts and Company Codes
General Ledger
Chart of Accounts Data
• Account number Account number 100101

• Name of the Chart of Chart of accounts CPEN
Accounts
• Account group provides Account group BS
information that controls P&L statement acct type

the creation of the Balance sheet account X
master record for a

company code

General Ledger
Company Code Data
• Local currency
• Foreign currency
• Tax category
• Open item management
• Line item display
• Sort key
General Ledger
Company Code Data (continued)
• Local currency
– Specify the currency in which the account is to be
posted
– Transaction figures are always updated and displayed
in local currency
General Ledger
• Foreign currency
– Specify the alternative currency in which the account
is to be posted
– It is possible to select up to two alternative currencies
– Transaction figures will be updated in both the local
and alternative currencies

General Ledger
• Tax category
– Specify the type of tax on purchase and sales (input
or output taxes) that can be posted to the account
– If the account is not tax relevant, do not make a
specification in this field
General Ledger
• Open item management

– Indicates that the account is subjected to an
affirmative clearing process involving the matching of
debits to credits with the purpose of closing each
individual line item
– For example, reconciliation accounts
– You can only archive an accounting document if all of
its individual line items have been cleared
General Ledger
• Line item display

– Select if it is desirable to view all the debit and credit
detail for the account
– Remember that when posting items to such accounts
and displaying line items, additional storage space
and system time are required

General Ledger
• Line item display should not be used for the

following accounts:
– Reconciliation accounts
– Accounts that have a summation function and are
analyzed by another application such as revenue or
stock accounts
– Output and input tax accounts, since tax information
is required only in connection with the document
General Ledger
• Sort Key
– Necessary when line item display is selected
– Determines the data field that will be used to sort the
line items
• Posting date
• Document date
• Cost center
General Ledger
• Reconciliation accounts
– When you post to a sub-ledger, the system
automatically concurrently posts to the corresponding
reconciliation account in the general ledger
– In this way, the general ledger is automatically
updated and remains in balance with the individual
account totals

General Ledger
General
Ledger General Ledger
Debit Credit Reconciliation Accounts
A/R, A/P, GR/IR
$$ $$
A/R A/P GR/IR

Subsidiary
Debit Credit Debit Credit Debit Credit Ledger Accounts
$$ $$ $$ $$ $$ $$
A/R, A/P, GR/IR
Accounts Receivable
Reconciliation Account
Customer 189 Customer 142

Accounts Receivable
100 300 Reconciliation
950
Customer 135 Customer 123
400 150
Accounts Receivable Integration
MM Goods Sales SD
Materials
Mgmt.
Issue Order Sales and
Distribution
FI
Financial FI
Accounting Financial
Accounting
CGS Revenue
Decrease to Inventory FI Increase to A/R
Financial
Accounting
Income Statement
Balance Sheet

Accounts Payable Reconciliation Account
Vendor 100234 Vendor 100435

Accounts Payable
200 250 Reconciliation
950
Vendor 100621 Vendor 100846
100 300
Accounts Payable Integration
MM
MM Goods Invoice Materials
Mgmt.
Materials
Mgmt.
Receipt Receipt
FI FI
Financial Financial
Accounting Accounting
Increase to Inventory Increase to A/P

FI
Increase to GR/IR Financial Decrease to GR/IR
Accounting
Balance Sheet
Line Item Display
Account number 100999 Bank Account

Company code C999
Period Debit Credit DC bal. Balance

C/f bal. 750,000.00
Period 1 5,250.00 3,540.00 1,710.00 751,710.00
Period 2 25,000.00 15,000.00 10,000.00 761,710.00
Period 1
Doc. no. DT Doc.date Currency Amount
1500000013 KZ 01/05/04 USD 1,800.00 -
1500000014 KZ 01/06/04 USD 990.00 -
100000012 SA 01/08/04 USD 750.00 –
1400000342 DZ 01/14/04 USD 5,250.00

Unit 6, Group 1 – Exercises
41. Create Bank Account

42. Create Accounts Receivable Reconciliation
Account
43. Create Trading Goods Inventory Account
44. Create Operating Supplies Inventory Account
45. Create Accounts Payable Reconciliation Account
46. Create Goods Receipt / Invoice Receipt
47. Create Output Tax Account
48. Create Input Tax Account
49. Create Retained Earnings Account
50. Create Common Stock Account
51. Create Trading Goods Consumption Expense

Account
52. Create Operating Supplies Expense Account
53. Create Utilities Expense Account
54. Create Purchase Price Difference Expense
Account
55. Create Information Technology Expense Account
56. Create Miscellaneous Expense Account
57. Create Cost of Goods Sold
58. Run General Ledger List of Accounts Report

Unit 7
Materials Management
(MM)
- Master Data and Rules -

Master
Rules
Data
MM
MM
Master Data

• Before making the master data configurations, you
must have completely defined the organizational
structures

SD FI
Sales and
Sales and Financial
Distribution
MM
MM CO
Materials
Materials Mgmt. Controlling
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Solution
s
Unit 7, Part 1 – Overview (Master Data)
• Unit Concept
• Procure-to-Pay Process
• Vendor Master Data
• Purchasing Information Record
Unit Concept
• The purchasing process involves the acquisition

of goods and services to support the creation of
goods and services in the organization
• Master data and rules required for the
purchasing process is presented

Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
3-Way Vendor
Match
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Master Data – General
• Business rules and supportive information are

stored in master data records
• Each master data record is unique in name or
number
• Internal or external number ranges are possible
• Usually created or converted (legacy system) in
the beginning
• Maintained by numerous organizations
Master Data – General (continued)
• Vendor master records are maintained by both

accounts payable (A/P) and purchasing
• Material master records are maintained by
purchasing, sales, production, accounting, etc.
• Purchasing information records are maintained
primarily by purchasing

Vendor Master
Organization of the Data
ta:
l Da
era
General Data Gen ddress
A Pu
rch
a
Da sing
ta
Company Code Data

Financial Accounting (FI) Vendor 10001
Purchasing Organization
Data (MM)
Vendor Master Data
• A master record must be created for every

vendor
• General data, Company Code data (Financial
Accounting - FI), and Purchasing Org data
(Material Management - MM)
General data Company code data Purch. org data

Address Account Purchasing data
Control data management Partner functions
Payment Payment
transactions transactions
Vendor Master
• Includes all data necessary for processing

business transactions and corresponding with
vendors
• Information is shared between the accounting
and purchasing departments

Vendor Master – Typical Screens
• Address
• Control
• Payment Transactions
• Accounting Information
• Correspondence
• Purchasing Data
• Partner Functions
Vendor Master
General Data – Address
Address
Vendor Name
Search Term
Street address
City, Region Postal code
Country
Communication
Language
Telephone, Fax, E-Mail
Vendor Master
General Data – Control Data
• Account Control
– Customer
– Authorization
– Trading partner
– Group key
• Tax Information
– Tax codes
– Fiscal address
– Country code
– City code
• Reference Data / Area
– International locator number
– Industry
– Transport zone

Vendor Master
General Data – Payment Transactions
• Bank Details
– Bank Key
– Bank Account
– Account Holder
– Partner Bank Type
• Payment Transactions
– Alternative Payee
– Instruction Key
Vendor Master – Company Code –

Accounting Information
– Reconciliation Account
– Sort Key
– Release Group
• Interest Calculation
– Interest Calculation Indication
– Interest Calculation Frequency
• Withholding Tax
– Withholding Tax Code
– Exemption Number

Payment Transactions
• Payment Data
– Payment Terms
– Tolerance Group
– Check Double Invoice
– Check Cashing Time
• Automatic Payment Transactions
– Payment Methods
– Alternate Payee
– Payment Block
• Invoice Verification
– Tolerance Group


Correspondence Accounting
• Dunning Data
– Dunning Procedure
– Dunning Block
– Dunning Recipient
– Date of Legal Dunning Procedure
• Correspondence
– Local Processing
– Accounting Clerk
– Account With Vendor
Vendor Master – Purch. Org. Data –

Purchasing Data
• Conditions • Control Data

– Order Currency – Acknowledgement
– Terms of Payment Required
– Incoterms – Returns to Vendor
– Minimum Order Value – Automatic Purchase
Order
• Sales Data
– Salesperson
• Default Data Material
– Purchasing Group
– Planned Delivery Time

Partner Functions
– Partner Function
– Partner Name


Account Group
• Vendor masters are assigned to a vendor

account group
• Through field status maintenance, vendor
account groups can be setup for one-time
vendors, regional vendors, and internal vendors
• The vendor account group controls both type
and number range assignment for vendors
Purchasing Info Record
• The purchasing info record provides

continuously updated information about the
relationship of a specific material with a specific
vendor
• Order unit, price, price changes, tolerances,
reminder infos, historic data, statistics, texts
• Choice of automatic or manual updating
Source List
• The source list stores information about where to

acquire a given material for a given period of
time
• It specifies whether this source should be used
by Materials Requirement Planning (MRP)

59. Vendor Account Groups

60. Create Vendor Master Accounting Record
61. Create Vendor Master Purchasing Record
62. Create Vendor Master Record Centrally
Unit 7, Part 2 – Overview (Rules)
• Fiscal Period
• Plant Parameters
• MRP
Rules

Transactions
Transactions

Fiscal Period
• In order to execute any material postings, the

current fiscal period has to be activated
• By initializing the company code for material
management, the first major integration between
Financial Accounting (FI) and Logistics is
completed
Plant Parameters
• Material Requirements Planning (MRP)

controllers
– Individuals responsible for running and maintaining
Material Requirements Planning data and reports
• Negative stock allowance
– If a material is allowed to go negative for inventory
stock
Plant Parameters – (continued)
• Purchasing
– Special purchasing rules
– External purchasing only settings
• Planned orders
– Rescheduling
– Conversion to purchase requisitions

Plant Parameters – (continued)
• Document number ranges

– Planned orders
– Purchase requisitions
– Material Requirements Planning (MRP) lists
– Reservations
Material Requirements Planning
• Detailed planning level

• Primary Functions
– Monitor inventory stocks
– Determine material needs
• Quantity
• Timing
– Generate purchase or production orders
Materials Requirements Planning

(continued)
• Integrates Production Planning (PP) module with

the Materials Management (MM) module
• Prerequisites for Materials Requirement
Planning (MRP)
– Activate Material Requirements Planning (MRP) for a
plant
– Material Master created
• Material Requirements Planning view
• Material Requirements Planning type


Basic Process
• Exploding the Bill of Material (if using

production)
• Netting Out Inventory
• Lot Sizing
• Time-phasing requirements

Net Requirements
• Material Requirements Planning (MRP)

calculates the quantity of material needed, if
any, based on
– Sales Orders
– Material Reservations
– Repair Parts
– Inventory
– Purchase Orders
– Etc…

Net Requirements – (continued)
• If adequate inventory is not available to meet

Material Requirements Planning (MRP) needs
then the system generates
– Planned Production Orders
– Planned Purchase Orders


Lot Sizing
• Static
– Based on fixed values in the Material Master
• Periodic
– Groups net requirements together from multiple
periods
• Optimum
– Calculates the optimum lot size for a several periods
of net requirements
65. Initialize Fiscal Period for Company Code

66. Maintain Plant Parameters for Material
Management
67. Activate Materials Requirements Planning
Unit 7, Part 3
Overview (Material Master)
• Industry Sector
• Material Type
• Maintenance Features
• Organizational Levels
• Primary Views

Material Master – Industry Sector
• Records are grouped according to industry

sector and material type
• Determines the industry specific data that will
appear on the master record
Material Master – Material Type
• Material types group materials with the

same attributes
• Material type information determines:
– What views are maintained
– Whether internal or external procurement is allowed
– If changes in material quantity are updated
– Which general ledger accounts are updated
Material Master – Material Types
• Standard material types are used in all

industries.
– ROH: Raw Materials
• Purchased externally only
• No sales view
– HAWA: Trading Goods
• Always purchased externally
• Sold without any change to the material
• No manufacturing views exist

Material Master – Material Types

(continued)
– FERT: Finished Products

• Are produced internally
• Normally no purchasing views exist
Material Master
Additional Material Types
• HIBE: Operating Supplies

• VERP: Customer returnable packaging
• LEER: Empty containers
• KMAT: Configurable material
• ERSA: Spare parts
• DIEN: Services
Material Master
Additional Material Types (continued)
• NLAG: Non-stock, non-valuated material

• UNBW: Non-valuated, stocked material
• FHMI: Production resources/tools
• WETT: Competitive products
• PROD: Product group
• IBAU: Maintenance assembly
(Plant Maintenance)

Material Master Maintenance
• Defaults - speeds entry of data by using the

most frequently used field values (plant,
purchasing organization, etc.)
• Reference Material - speeds entry of data by
copying data from existing material master
• Profiles - speeds entry of data by copying
standard data created in a profile into a selected
view Materials Requirements Planning (MRP)
• Collective entry of storage location data - speeds
creation of multiple storage locations
Material Master Data
• Material master data can be related to all

organizational levels
• General information of a material (description,
number, base unit of measure)
– Has to be related to the highest level of organization -
the client
Material Master – Levels
• Client
– Description
– Units of measure
– Material number
– Engineering data
• Plant
– Planning data
– Manufacturing data
– Purchasing data

Material Master – Levels (continued)
• Storage Location
– Stock quantities
Material Master – Views
• Basic data 1, 2
• Classification
• Sales: sales organization data 1, 2
• Sales: general/plant data
• Sales text
• Purchasing
• Purchase order text
• Forecasting
Material Master – Views (continued)
• MRP 1, 2, 3, 4
• Work scheduling
• Storage
• Warehouse management
• Quality management
• Accounting 1, 2
• Costing 1, 2

Material Master – Material Management
• Basic Data
g
sin
• Purchasing cha
Pur iew
V MR
P
• MRP 1,2,3 Vie 1
w
• General Plant
Data/Storage Barrel Pen
• Accounting 1
Material Master – Basic Data
• General data
– Basic Unit of Measure
• Unit of measure in which stocks of the material are managed
– Material Group
• Key that you use to group together several materials or
services with the same attributes
– Division
• Used to determine the sales area and the business area for a
material, product, or service
Material Master – Basic Data

(continued)
• Dimensions/EANs
– Gross weight
• Used to check storage capacity in warehouse
– Net weight
• Weight excluding packaging and extras – this is needed for
sales and distribution
– Weight Unit
• Unit of Measure for weight
– Volume
• The space that the material occupies per unit of volume

Material Master – Purchasing View
• General Data
– Order Unit
• The unit of measure in which a company purchases the
product
• Key for a buyer or a group of buyers, who is/are responsible
for certain purchasing activities.
• Purchasing Values
– Purchasing Value Key
• Define the reminder days and tolerance limits for purchasing
Material Master – Plant Data/Storage 1
• General Data
– Container Requirements
• Define the regulations that govern which type of container
the material must be stored and shipped in
– Storage Conditions
• Defines the conditions on how a material must be stored or
warehoused
• Shelf Life Data
– Minimum remaining shelf life
• Minimum time the material must keep upon goods receipt
for the goods receipt to be accepted by the system
– Total Shelf Life
• Period of time the material will keep in total, from the date
of production or receipt to the shelf life expiration date
Material Master – MRP 1
• General Data
• The buyer(s) who are responsible for certain purchasing
activities
• MRP Procedures
– MRP Type
• Determines whether and how the material is planned
– Reorder Point
• If stock falls below this point, the system is flagged to create
a planned order
– MRP Controller
• The person(s) responsible for the material planning

Material Master – MRP 1 (continued)
• Lot Size Data

– Lot Size
• The lot sizing procedure to calculate the quantity to be
produced or procured
– Minimum Lot Size
• The smallest order quantity
– Fixed Lot Size
• The quantity to be ordered
• Scheduling
– Planned Delivery Time
• Number of calendar days needed to obtain the material
– Scheduling Margin Key
• Used to determine the floats required for scheduling
• Net Requirement Calculation
– Safety Stock
• Specifies the quantity whose purpose is to satisfy
unexpectedly high demand in the coverage period
• Availability Check
– Specifies whether and how the system checks
availability and generates requirements for materials
planning

Material Master – Accounting 1
• Current Valuation
– Valuation Class
– Allows the stock values of materials of the same
material type to be posted to different G/L
accounts.
– Allows the stock values of materials of different
material types to be posted to the same G/L
account.
– Determines together with other factors the G/L
accounts updated for a valuation-relevant
transaction (Material Movements)
– Price Unit
– Number of units to which the price refers
Material Master – Accounting 1

(continued)
• Current Valuation
– Price Control Indicator
– The price control used to valuate the stock of a
material (e.g, Standard or Moving Average Price)
– Standard Price
– The valuation of material stocks at standard prices
means that all goods movements are valuated at
the same price over an extended period
– Moving Average Price
– The system calculates the moving average price
automatically by dividing the material value in the
stock account by the total of all storage location
stocks in the plant concerned
68. Define Attribute for Material Types (Set

Updating/Deselect Classification)
69. Create Material Master for Trading Goods
70. (Optional Exercise) Create Material Master for
Operating Supplies

Unit 8
(FI)
- Rules -

Rules
FI
Rules

Transactions
Transactions

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Unit 8 – Overview
• Posting Periods
• Tolerance Groups for Account Postings
• Accounts Payable Settlement
• Document Numbers
Posting Periods
• Before it is possible to post documents, it is

necessary to define posting periods
• Fiscal years are divided into one or more posting
periods
• Each posting period is delimited by both a start
and finish date
• A common division of a fiscal year involves
defining 16 posting periods -- 12 months and 4
quarter ending posting periods

Tolerances Groups for

Account Postings
• Internal control – amount limits that serve to

define the maximum authorization levels for your
employees
– Must be at least one entry for every company code
– Can be defined for an employee group with
employees being assigned to a given group to effect
the control
– Can be undefined at the group level meaning that the
control is effective for everyone who is not a member
of a group
Tolerances Groups for

Account Postings (continued)
• Internal control – amount limits that serve

to define the maximum authorization levels
for your employees with respect to:
– A single transaction
– A customer or vendor account line item
– Discount percentage granted to a line item
– Payment differences that can be accepted in
settlement of an account (e.g., accounts payable)
Accounts Payable Settlement
Purchase
Order
Payment
Program
Debit Credit
Invoice
Receipt
Verification
Goods
Receipt


(continued)
• Select payment method and bank

• Select items for payment
• Calculate the payment amount, taking account
of cash discount periods
• Post the payment document
• Print payment medium
Document Numbers
• All posted transactions must have a unique

number assigned to it
• Usually these numbers are system generated
• The numbers serve to specifically identify the
business content of a transaction so that it may
be recalled at a later time
• The actual system stored document number
includes information respecting the year, date,
and company codes
Document Numbers – (continued)
• Before any documents can be posted to a

company or company code, there must be a
number range assigned to the document type
• New transaction document number ranges must
be created at the start of each new fiscal year

71. Define Posting Periods Variant

72. Open and Close Posting Periods
73. Assign Posting Periods Variant to Company
Code
74. Create Tolerance Groups for Account Postings
75. Setup Payment Program
76. Create Tolerance Groups for Accounts
Receivable and Accounts Payable
77. Create Financial Accounting (FI) Document
Numbers

Unit 9
(FI)
- Transactions -
FI
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Unit 9 – Overview
• Document Principles
• Document Types
• Posting Keys
Document Principles
• Each completed accounting transaction writes

data to the database and creates a unique
electronic document
• Each document contains information such as:
– Responsible person
– Date and time of the transaction
– Commercial content including company codes

Document Principles – (continued)
• An accounting document captures the entire

transaction in a manner that facilitates recall for
reporting purposes
• It remains as a complete unit in the system until
archived
• Once created, a document can not be deleted
from the database
• The SAP R/3 document principle provides a

solid framework for a strong internal control
system
• Audit trails allow an accountant to begin with an
account balance on a financial statement and
trace through the accounting records to the
transactions that support the account balance or
to trace individual transactions to the effected
account balance(s) on a financial statement
• Each posted accounting document has a header

• Each posted accounting document has at least

two lines (e.g., debit and credit)
Document Types
• A way to categorize different transactions

– Many different document types are supplied in the
system
• Document types are associated with number
ranges
– All documents of the same document type are stored
in the system by document number
• Determine the type of account that can be
posted to
Document Types – (continued)
• SA – General ledger account documents

• DR – Customer invoices
• DG – Customer credit memos
• DZ – Customer payments
• KR – Vendor invoices
• KG – Vendor credit memos
• KZ – Vendor payments
• KN – Vendor net invoices and credit memos

Posting Keys
• Determine whether the item to be posted is a

debit or a credit
• Determine the type of account that can be
posted
Posting Keys – (continued)
The posting key (PK) has

a control function that
pertains to the document
line items.
It determines the
following:
• Account type for
posting the line item
• Debit or credit posting
of line items
• Field status for
additional information
Posting Keys – (continued)
General Ledger Vendors

Common
40 50 2 3
Posting
Keys
Assets Material Customers
70 75 89 99 0 1

78. Review Document Types

79. Post Initial Cash Investment by Owners
80. Post Purchase of Operating Supplies
81. Display and Review General Ledger Account
Balances and Individual Line Items

Unit 10
(FI)
- Transactions -
FI
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Unit 10 – Overview
• Monthly Rent Cycle

• Invoice Receipt
• Invoice Entry
• Accounts Payable Settlement
Monthly Rent Cycle
Rental Invoice
Agreement Receipt
Accounts
Payable

Invoice Receipt
Invoice Invoice
Receipt Verification
Invoice Entry
Vendor
Information
• Select payment method and bank

• Select items for payment
• Calculate the payment amount, taking
account of cash discount periods
• Post the payment document
• Print payment medium

82. Create Vendor Master Record for Landlord

83. Create Rent Expense Account
84. Create Invoice Receipt for Rent Expense
85. Display and Review General Ledger Account
86. Display and Review Vendor Account Balances
and Individual Line Items
87. Post Payment to Landlord
88. Display and Review General Ledger and Vendor
Account Balances and Individual Line Items

Unit 11
(MM)
- Rules -

Rules
MM
Rules

Transactions
Transactions

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
• Reservations
• Tolerances
– Purchasing
– Goods Receipt
– Invoice Receipt
• Automatic Account Assignment
Reservations
• A request to have a material ready for issue at a

future date for a production order, sales order,
etc.
• The purpose of a reservation is to ensure that a
material is available when required and not
assigned to another use

Purchasing Tolerances
• A tolerance limit is set for allowed variance

before a warning/error message is displayed
– Price variance
• Compares the price in the purchase order with the valuation
price stored in the material master
– Maximum cash discount
• This tolerance limit is set to assure that cash discounts do
not exceed allowable discounts
Goods Receipts Tolerances
• Purchase order price quantity – there are two

tolerance levels maintained per item
– The maximum percentage variance before a goods
receipt postings is not allowed
– A percent variance that generates a warning
message but allows posting
• Moving average price variance – the maximum
allowable moving average price change allowed
Invoice Receipts Tolerances
• Many tolerance limits that can be

configured for invoice receipts: price,
quantity, and blanket purchase orders
These tolerances include:
– Amount for item with or without order reference
– Form small differences automatically
– Percentage Over/Under Quantity Variance
– Exceed amount: quantity variance
– Blanket purchase order – value and time limit
– Price variance

Automatic Account Assignment
• Automatic account assignment is created to

avoid manual postings of financial transactions
which follow goods movements to reflect the
values of transferred materials
• Automatic account assignment is used across all
modules to keep track of the values of materials
that are being consumed (e.g., production), or
transferred into other valuation areas of the
company

(continued)
• Automatic account assignment is a set of rules

and master data which enable the financial
tracking of logistics movement

Components
• Components of Automatic Account Assignment

– Chart of Accounts
– Valuation Grouping Code
– Transaction Key
– Modifier for Transaction Key
– Valuation Class


Valuation Grouping Code
• Valuation grouping code - groups valuation

areas together
– Example: valuation area is plant, five plants exist in
the company, all five plants use the same accounts.
– Multiple valuation groups are possible

Valuation Grouping Code
Grouping Code Grouping Code

G001 G002
Plant – P003

Transaction Keys
• Transaction Keys
– The transaction keys are used to determine accounts
or posting keys for line items which are created
automatically by the system.
– The transaction keys are defined in the system.


Transaction Keys
• Transaction Keys
– Inventory Postings
• BSX
– Offsetting Entry for Inventory Postings
• GBB
– Materials Management Small Differences
• DIF
– Cost (price) differences (PPV)
• PRD
– Goods receipt / inv. receipt clearing acct
• WRX

Modifier
• Modifier – modifies the transaction key for

various movement types
– Blank – Goods receipt from purchase order with
account assignment
– VBR – Goods issue to consumption
– VAX – Goods issue to sales – post to cost of goods
sold
– AUF – Goods receipt from a production order – post
to production settlement
– Etc. – Many others
Material Types & Valuation Classes
• Account category reference:

– Builds the link between material types and the
valuation class(es)
Material Type Account Category Reference Valuation Class
ROH 0001 – Reference for Raw Materials 3000/3001/3002/3003
HIBE 0002 – Reference for Operating Supplies 3030/3031
HAWA 0005 – Reference for Trading Goods 3100
FERT 0009 – Reference for Finished Products 7920

Material Types & Valuation Classes
Valuation Class
3000
(Steel)
Valuation Class
Material Type Acct Cat. Ref
3001
ROH (Raw Material) 0001 – Raw Materials
(Paper)
Valuation Class
3003
(Plastics)
Valuation Class Valuation Class Valuation Class

3100 (Trading Good) 3100 (Trading Good) 3100 (Trading Good)
Plant P001
Plant P002
Plant P003
Grouping Code Grouping Code Grouping Code

G000 G000 G001
Goods Movement Goods Movement Goods Movement

GBB (Goods Issue) GBB (Goods Issue) GBB (Goods Issue)
Account Modifier Account Modifier Account Modifier

VBR (Iss. To Cons.) VBR (Iss. To Cons.) VBR (Iss. To Cons.)
Account Account
790000
January 2008 © SAP AG and The Rushmore Group, LLC 2008
790001 356
Where Value
What: Where Valued: Why 1: Why 2: is recorded:
Goods Additional Chart of

Material Valuation Area Movement Information Accounts
Represented Valuation Valuation Transaction Account

By: Class Grouping Code Event Key Modifier G/L Account
Points To: Material Type Plant
Where Value
What: Where Valued: Why 1: Why 2: is recorded:
Chart of
Issued to Accounts -
BPEN000 Plant – P001 Good Issue Consumption C000
Represented
By: 3100 G000 GBB VBR 790000
Points To: HAWA Plant – P001

Goods Receipt
• Materials can be received as stock items or non-

stock items
• Receipt is possible from external or internal
sources
• Individually / collectively
• Tolerance limits can be set for goods receipt
• Special movement type for initial inventory load
Goods Receipt – (continued)
• Stock items can be received into restricted or

unrestricted stock
• Non-stock items are received into orders,
projects, cost centers
• Materials that are usually received into inventory
can also be received into orders, projects, cost
centers
Invoice Verification
• Set parameters for invoice verification

– Quantity, price, receiving date, P/O quantity
– Updates material master if moving average price
– Automatic account assignment for price differences -
if allowed
• Verify actual versus target

3-Way Match
Purchase order
- Target quantity -
- Target price -
Invoice receipt Goods receipt

- Actual price - - Actual quantity -
Purchase
Order
Payment
Program
Invoice Debit Credit
Receipt
Verification
Goods
Receipt
89. Set Default Values for Inventory Management

Reservations
90. Maintain Purchasing Tolerance Limits
91. Maintain Goods Receipt Tolerances
92. Maintain Invoice Receipt Tolerances
93. Set (Review) Valuation Control
94. Assign Valuation Area Grouping
95. Define (Review) Valuation Classes

96. Configure Automatic Postings for Goods

Movement
97. Configure Automatic Postings for Taxes
98. Set Parameters for Invoice Verification
99. Create Default Values for Invoice Verification

Unit 12
(MM)
- Transactions -
MM
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
3-Way Vendor
Match
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Basic Procurement Process
• Requirements Determination - Purchase

Requisition
• Vendor Selection
• Order Processing - Purchase Order
• Order Tracking
• Goods Receipt and Inventory Management
• Payment

Purchase Requisitions
• Internal document
• Requesting a certain quantity of material or
service on a certain date
• Can be created:
– Manually
– Automatically (Materials Requirements Planning
(MRP), sales orders, etc.)
• Release approval procedures are optional
Purchase Requisitions Sources
• Manually created by user department

– Office supplies
– Projects
– Prototype materials
• Automatically created by
– Planning (Material Requirements Planning (MRP),
Master Production Schedule (MPS))
– Plant Maintenance
– Production Orders
– Sales Orders
Purchase Requisitions Processing
• Create purchase requisition (manually or

automatically)
• Determine source of supply
• Release procedure (optional)
• Assign vendor and process

Purchase Requisitions Creating
• Default data for line items

– Delivery dates, plants, purchasing groups, etc.
• Maintain line item data
– Materials, quantities, delivery dates, etc.
• Maintain account assignment (if required)
– Cost center, General Ledger accounts, project
number, etc.
• Check data
• Save
Purchase Orders
• Purchase Orders are:

– A formal request to a vendor to provide materials or
services
– An internal planning and tracking tool
• Purchase Orders identify:
– Vendor
– Material and/or service
– Quantity and price
– Delivery dates
– Terms of payment
Purchase Order Structure

Header
• Header - information specific to the entire

purchase order
– Vendor
– Currency
– Payment terms

Purchase Order Structure

Line Items
• Line item details

– Account assignment
– Delivery schedule
– Materials or services quantity
– Price
– Description
– Item category
Purchase Order
• Request for Quotations

• Purchase Order
• Order Acknowledgment
Purchase Order – Output Format
• Printed and mailed

• E-mail
• Electronic Data Interchange (EDI)
• Faxed (hardcopy or electronic)
• eXtensible Markup Language (XML)

Goods Receipt
• Goods receipt with reference to a purchase

order
– Copy data from purchase order
– Delivery notification
– Invoice verification
– Updates purchase order history
– Inventory update
– Automatic update of General Ledger (G/L) accounts
Goods Receipt (continued)
• You can search for the purchase order number

with
– Material number, vendor number, etc.
Goods Receipt – Destinations
• Stock - given a storage location, can be posted

to three different stock statuses
– Unrestricted-use
– Quality inspection
– Blocked stock (valuated)
• Consumption - can be assigned a recipient or
unloading point
• Goods receipt for blocked stock - updates
inventory, but material is not valuated
(conditional acceptance)

Goods Receipt – Movement Types
• Movement types - stock transactions

– Goods receipt
– Goods issue
– Stock transfer
• Movement type determines which
– Quantity fields are updated
– Stock types are updated
– General Ledger (G/L) stock or consumption accounts
are updated
– Fields are displayed during document entry
Goods Receipt – Movement Types

(continued)
• 101 - goods receipt for purchase order into

warehouse/stores
• 102 - reversal of goods receipt for purchase
order into warehouse/stores
• 122 - return delivery to vendor
• 501 - receipt w/o purchase order into
unrestricted-use stock
Goods Receipt – Account Postings
• Inventory account is debited at standard price

• Goods Receipt/Inventory Receipt (GR/IR)
clearing account is credited at purchase order
price
• Price difference account is debited (credited)
with difference between standard price and
purchase order price

Goods Receipt – Effects
• Purchase Order (PO) history and Purchase

Order (PO) updated
• Material Master - stock and value updated
• Notification of goods receipt issued (optional)
• Transfer request to Warehouse Management
system (if active)
Goods Receipt – Effects (continued)
• Material and financial documents created and/or

updated
• Stock and consumption accounts updated
• Inspection notification in Quality Management
(QM) - if active
Invoice Verification
• Matches the vendor’s invoice to the purchase

order and the goods receipt (3rd part of 3-way
match)
• Matches price and quantity
• Updates the purchase order and its history
• Updates accounting information

Invoice Payment
• Selects invoices for payment based on the

payment terms in the vendor master or purchase
order
• Generates payment for released invoices
• Updates accounting information
3-Way Match for Payment
Purchase
Order
Payment
Program
Invoice Debit Credit
Receipt
Verification
Goods
Receipt

Process
• Determines:
– Open items to be paid
– When they will be paid
– Bank from which payment will be made
– Payment medium
– Who will get paid
• Payment process creates a financial accounting
document to record the transaction

Goods Receipt / Invoice Receipt

Purchase requisition No impact on

Purchase order
and Financial Accounting (FI)
Goods receipt via automatic account
assignment
Inventory GR / IR
Dr Cr Dr Cr
$100 $100
Goods Receipt / Invoice Receipt

Amount owed is
Invoice receipt assigned and transferred to
vendor account payable
GR / IR Vendor A/P
Dr Cr Dr Cr
$100 $100
Vendor Payment
Amount owed is paid to

Bank vendor and account payable
is reduced
Bank Vendor A/P

Dr Cr Dr Cr
$100 $100

(FI – MM) Integration Points
Goods Invoice Payment

Receipt Receipt Program
AP
Inventory GR / IR (Vendor) Bank
Dr Cr Dr Cr Dr Cr Dr Cr
$100 $100 $100 $100 $100 $100
• Debit posting $100 • Credit posting $100

• BSX - inventory • WRX goods receipt
posting to trading posting to GR/IR
goods inventory account 310XXX
account 201XXX
100. Create Purchase Order for Slick Pens

101. Create Purchase Order for Premier Pens
102. Create Purchase Order for Promotions, Ltd.
103. Create Goods Receipts for Purchase Orders
104. Create Invoice Receipts from Vendors
105. Post Payment to Vendors
106. Display Vendor Line Items

Unit 13
(MM)
- Transactions -
MM
Transaction Data

• Unlike master data, aggregate transactional data is
dynamic – each transaction is unique

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
• A company may want to establish a long term

purchasing relationship with a vendor
• Its is accomplished through a purchasing
contract (outline agreement or blanket order)
• Purchases of that material from that vendor are
then simplified and streamlined
Buyer/Supplier Relationships
• Antagonistic – parties view each other as the

enemy (lose/lose)
• Adversarial – each party attempts to maximize
their gain (win/lose)
• Cooperative – parties understand the benefits of
working together (win/win)
• Collaborative – parties look for opportunities to
create value (win/win)

Buyer/Supplier Relationships
• Long term partnerships are the objective of the

supplier evaluation and selection process for
contracts
• Traditional purchasing process
– Creates an environment of mistrust and low bidder
mentality
– Leads to higher total purchasing costs
Supplier Evaluation and Selection
• Identify need for long term supplier contract

• Determine specific sourcing requirements
• Identify potential suppliers
• Determine method of evaluating suppliers
• Select supplier for contract
• Negotiate and execute contract
Benefits of Managing the

Supply Base
• Contract with only world-class suppliers

• The fewer suppliers the lower the purchasing
overhead
• Purchasing can pursue strategic sourcing
issues, instead of clerical functions
• Streamline the supply chain
• Improved overall quality
• Improved delivery performance

Outline Agreement
• Long-term purchase agreements

• Outline agreements can be subdivided into the
following types:
– Contracts
– Scheduling agreements
• Outline agreements can be subject to a release
(approval or clearance) procedure
Contract Process Overview
• Step one is to identify and evaluate suppliers

• It may involve supplier development
• The goals are:
– Develop partnerships with good suppliers
– Reduce total cost of purchased materials and
services
Contracting Questions
• How will potential suppliers be evaluated and

selected?
• What procedures will be required to manage the
contracts (and suppliers)?
• How will performance be measured?
• How many are too many suppliers?
– Too many suppliers cost money
– Supplier integration
– Collaborative agreements
– Supplier development
– Without material production shuts down
• What is the risk?

Contract Management
• Supplier performance metrics

– On-time delivery
– Material and/or service quality
– Returned materials
– Expedite issues
– Pricing analysis
• Problem resolution procedures
– Improve or else
– Continuous improvement process
• When to end the contract
Creating a Contract
• Is a long-term agreement with a vendor to

provide a material or service
– For an agreed upon period of time
– At a negotiated price or quantity
• Can be created manually or with reference to
purchase requisition, Request for Quote
(RFQ)/quotation etc.
Two Types of Contracts
• Quantity contracts are agreements with a

particular vendor to purchase a specific quantity
of materials. Example: Target quantity of 50,000
meters of electrical wire at $2/meter. (MK)
• Value contracts are similar to quantity contract
except the agreement is to purchase an
established monetary value of materials.
Example: Target value of $100,000 for electrical
wire. (WK)

Quotations/Contracts Process
• Requirement for material is identified

• Process followed to select a vendor
– Request for Quotation (RFQ)
– Maintaining a Quotation
– Comparison of Prices
– Creating a Contract
– Creating a Release Order
Request for Quotation (RFQ)
• Is an invitation to a vendor to indicate their terms

and conditions (in particular, their price) for the
supply of a material or the provision of a service
by submitting a quotation
• Identifies the required material, quantity, and
delivery dates
Quotation
• A quotation contains the vendor's pricing and

conditions for providing the material or service
stated in the Request for Quotation (RFQ)
• In the SAP component Materials Management
(MM) Purchasing, the RFQ and quotation are
the same document. You enter the vendor's
pricing and conditions in the original RFQ.

Maintaining a Quotation
• Enter each vendor's quotation in the associated

Request for Quotation (RFQ)
• Compare prices using the price comparison list
• Store the best quote in an info record
• Optionally, send rejection letters to the losing
bidders
Comparison of Prices
• You can compare the prices from all quotations

from the competitive bidding process using the
price comparison list
• The comparison list ranks the quotations by item
from lowest to highest price
Creating a Release Order
• Purchase order that references a contract is

called a release orders, they specify:
– Number of the contract
– Quantity to be released
– Delivery date
• Release order documentation (open quantity,
quantity released to date, total value) is
automatically updated against the contract when
a release order is created

Creating a Release Order (continued)
• The vendor data, price data, and the delivery

terms and conditions are copied directly to the
release order
• Release orders can be created from a proposed
purchase requisition generated off an Materials
Requirement Planning (MRP) run (net
requirements)
– Manually
– Automatically
107. Create Purchase Outline Agreement (Contract)

for Stock Items
108. Run Materials Requirements Planning – Single
Item, Single Level
109. Convert Proposed Purchase Requisition to
Release Order
110. Review Outline Agreements

Unit 14
Sales and Distribution
(SD)

Org Data
SD
Organizational Data

and functions

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Components of Sales and Distribution
Shipping
Transport
Sales
Sales
Information
Support
Sales and System
Master
Distribution Data
Billing
(SD) Foreign
Sales
Trade
Credit
Mgmt.
Sales Organization
• Sales Organization
– Sells and distributes products
– Negotiates terms of sales
– Responsible for these business transactions
• Critical organization element to the definition of
business markets
• A sales transaction is linked to only one Sales
Organization

Sales Organization – (continued)
US Sales
S000
Distribution Channel
• Identifies how products and services reach the

customer
• Can be assigned to one or more Sales
Organizations
Distribution Channel – (continued)
US Sales
S000
Retail Dist Wholesale Dist

Channel (RE) Channel (WH)

Division
• Often times used to define product line

distribution
• Organization level to which customer specific
information and requirements are maintained
(e.g. pricing, partial delivery)
• Assigned to one or more Sales Organizations
Division – (continued)
US Sales
S000
Medical Division Chemical Division
Sales Area
• Sales Area comprised of:

– Sales Organization
– Distribution Channel
– Division
• Will be used to link together the organizational
aspects of sales to customers
• Used for statistical analysis

Sales Area – (continued)
US Sales
S000

Medical Chemical Medical Chemical

Division Division Division Division
Sales Area – (continued)
US Sales
S000

Medical Chemical Medical Chemical

Division Division Division Division
Internal Sales Organization
• Typically defines a territory or market

• Linked to one or more Sales Areas
• Optional organization structure

Sales Office
US Sales
S000
Eastern Sales Western Sales
Sales Group
• Sales Group
– Sub-division of a sales office, territory or market
Sales Person
• Sales Person
– Defined in Human Resources (HR) — Personnel
Admin.
– Specifically defines an individual rather than a
position (sales rep.) in sales processing

Internal Sales Organization
US Sales
S000
Eastern Sales Western Sales
Northeast Southeast Northwest Southwest

Sales Group Sales Group Sales Group Sales Group
Salesperson Salesperson Salesperson Salesperson

1 3 5 7
Salesperson Salesperson Salesperson Salesperson

2 4 6 8
Shipping and Loading Points
• Shipping Point
– Location that performs all delivery related activities
– Assigned a factory calendar
– A delivery can be processed from only one shipping
point
• Loading Point
– A subdivision of the shipping point used for more
specialized handling
Shipping Organization
Plant
P000
Freight Dock Express Dock Rail Dock

FD00 ED00 RD00
Loading Loading Loading Loading

Point 1 Point 2 Point 3 Point 4

114. Create Sales Organization

115. Assign Sales Organization to Company Code
116. Define Distribution Channels
117. Assign Distribution Channels to Sales
Organization
118. Define Division
119. Assign Division to Sales Organization
120. Setup Sales Areas
121. Define Common Distribution Channels
122. Define Common Divisions
123. Define Loading Groups

124. Create Shipping Point
125. Assign Plant to Sales Organization and
Distribution Channel
126. Assign Shipping Points to Plant

Unit 15
(SD)
- Master Data -

Master
Data
SD
Master Data

– Material Master Data
– Vendor Master Data
– Purchasing Information Record
– General Ledger Master Data
• Before making the Master Data configurations,

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Master Data Core Elements
Customer
Master
Data
Material Pricing
Material Master – Sales Views
• Sales: sales org. 1

1
rg.
• Sales: sales org 2 sO
Sale iew Sa
V les
O
• Sales: general/plant Vie rg. 2
w
• Foreign trade export
• Sales: text Barrel Pen

Material Master –
Sales: Sales Org. 1 View
• General Data
– Base Unit of Measure
• The Base Unit of Measure is the unit of measure in which stocks are
managed within your company.
– Division
• You may enter the Division which your product is in for sales
(defaults if entered in the Basic data screen).
– Material Group
• A key that’s used to group several materials or services for
analysis/reporting as well as search by match code.
– Sales Unit
• The unit of measure in which the material is sold, if left blank then
uses the base unit of measure.
Material Master –
Sales: Sales Org. 1 View (continued)
– Delivering Plant
• Plant from which the material is available for sale.
– Cash discount
• Indicator used for materials, which allow for a cash discount.
– Conditions
• Pricing procedure for the material
• Tax Data
– Tax classification material
• The indicator with which the system determines output tax for
the material when processing sales and distribution-specific
documents
Material Master –
• Quantity Stipulations
– Minimum Order Quantity
• Minimum quantity a customer may order.
– Minimum Delivery Quantity
– Minimum quantity that may be delivered to a customer
– Delivery Unit
• The delivery unit consists of a number and a unit of
measure. In the case of a delivery unit of 30 pieces, 30, 60,
90, and so on pieces can be delivered, but not, however,
100 pieces.

Material Master –
Sales: Sales Org. 2 View
• Grouping Terms
– Material Statistics Group
• Determine which data the system updates in the logistics
information system
– Material Pricing Group
• A way of grouping materials to which you want to apply the
same conditions
– Volume Rebate Group
• Group definition used for rebate settlement.
– General Item Category Group
• Materials grouping that helps the system to determine item
categories during sales document processing.
Material Master –
• Grouping Terms
– Item Category Group
• A grouping of materials that the system uses to determine
item categories during the processing of sales documents.
– Commission Group
• Commission group to which the material is assigned.
Material Master
Sales: General/Plant View
• General Data
– Base unit
• The unit of measure in which items are managed in the
company
– Gross weight
• Used to check storage capacity in warehouse
– Net weight
• Weight excluding packaging and extras – this is needed for
sales and distribution
– Avail. Check
• Option to do an availability check for orders and MRP

Material Master
Sales: General/Plant View (continued)
• Shipping Data (times in days)

– Transportation Group
• Group materials that have the same transportation
requirements. For example, bulk stock materials
– Loading Group
• Loading groups define materials that have the same loading
requirements, such as forklift truck, or crane.
Material Master
Sales: General/Plant View (continued)
• Packaging Material Data

– Material group Pack Materials
• Materials that require similar packaging materials
• General Plant Parameters
– Negative stock
• Indicates if negative stocks of the material are allowed at the
plant
– Profit Center
• Identifies the profit center in the current controlling area
Material Master
Sales: Sales Texts View
• Sales Texts
– Exchange of information throughout the logistics
chain
– In sales and distribution, this exchange of
information is supported by texts in master records
and documents
– You can define as many text types as you require
(sales texts, shipping texts, internal notes,
supplement texts etc.) for master records and
documents

127. Create Sales Views for Trading Goods

128. Create Sales Revenue Account
129. Create Sales Revenue Deduction Account
Customer
Master
Data
Material Pricing
Customer Master
Customer Master Data

is created by Sales Sales Area
Area
• Sales Organization US Sales
S000
• Distribution Channel
• Division
Distribution
Division - 01
Channel - RE

Customer Master - (continued)
ta:
l Da
era
General Data Gen ddress
A Sa
les
Sa Data
les :
Company Code Data

Financial Accounting (FI) Customer 43
Sales Data
Customer Master
• A master record must be created for every

customer
• General data, Company Code data (Financial
Accounting - FI), and Sales Org. data (Sales and
Distribution - SD)
General data Company Code data Sales Org. data

Address Account Mgmt Sales
Control data Payment Shipping
Payment transactions Billing
transactions Correspondence Partner Usage
Customer Master
Address
Customer Name
Search Term
Street address
City, Region Postal code
Country
Communication
Language
Telephone, Fax, E-Mail

Customer Master
General Data – Control Data
• Account Control
– Vendor
– Authorization
– Trading partner
– Group key
• Tax Information
– Tax codes
– Fiscal address
– Country code
– City code
• Reference Data / Area
Customer Master
General Data – Payment Transactions
• Bank Details
– Country
– Bank Key
– Account holder
– Bank Account
– Control Key
– Collection
Customer Master
General Data – Marketing
• Classification
– Nielsen ID
– Customer classification
– Industry
– Industry codes
• Operating Figures
– Annual sales
– Number of employees
– Fiscal year variant
• Sales Prospecting
– Legal status

Customer Master
General Data – Unloading Point
• Unloading Points
– Unloading point
– Default
– Calendar key
– Default Unloading Point
– Goods receiving hours
Customer Master
General Data – Foreign Trade
• Export Data
– Country key
– TDO Date (Table of Denial Orders)
– SDN Date (Specially Designated Nationals)
– Boycott Date
• Usage
– Mainly civilian usage
– Mainly military usage
• Classification
– Biochemical warfare
– Nuclear nonproliferation
– National security
Customer Master
General Data – Contact Persons
• Contact Person
– Name
– First name
– Department
– Function

Customer Master
Company Code – Acct Information
– Rec. Account
– Sort key
– Head office
• Interest Calculation
– Interest indicator
– Interest cycle
– Interest calculation frequency in months
– Last interest run
• Reference Data
– Previous account number
– Buying group
Customer Master
Company Code – Payment Transactions
• Payment Data
– Terms of Payment
– Tolerance group
• Automatic Payment Transactions
– Payment methods
– Payment block
– Alternative payer
– Grouping key
– Lockbox
Customer Master
Company Code – Correspondence
• Dunning Data
– Dunning procedure
– Dunning block
– Dunning recipient
• Correspondence
– Accounting clerk
– Acct at customer
– Customer user
• Payment Notices To
– Customer – Sales
– Accounting – Legal

Customer Master
Company Code – Insurance
• Export Credit Insurance

– Policy Number
– Institution Number
– Amount Insure
– Valid Until
– Lead Months
– Deductible
Customer Master
Sales and Distribution – Sales
• Sales Order
– Sales District
– Sales Office
– Sales Group
– Order Probability
– Item Proposal
• Pricing / Statistics
– Price Group
– Customer Pricing Procedure
– Price List Type
– Customer Statistical Group
Customer Master
Sales and Distribution – Shipping
• Shipping
– Delivery Priority
– Shipping Conditions
– Delivering Plant
– Order Combination
• Partial Delivery
– Complete Delivery Required By Law
– Partial Delivery per Item
– Max Part Deliveries
– Under/Over delivery Tolerances
• General Transportation Data
– Transportation Zone

Customer Master
Sales and Distribution – Billing
• Billing Section
– Subs. Invoice Processing
– Rebate
– Price Determination
– Invoicing Dates
• Delivery and Payment Terms
– Incoterms
– Payment Terms
• Accounting
– Account Assignment Group
• Taxes
– Tax Classification
Customer Master
Sales and Distribution – Partner Functions
– Partner Function (PF)
– Number
– Partner Description
• Sample Listing of Partner Functions Types

• SP – Sold-to-party
• BP – Bill-to-party
• PY – Payer
• SH – Ship-to-party
Business Partners
• Defines all of the parties involved in a business

transaction
• Differentiates between their roles
– Customer
– Carrier
– Employees
– Etc.

Business Partners
• The system will automatically assign a business

partner to the customer master and to any
transaction
• There are four default business partner
– Sold-to
– Ship-to
– Bill-to
– Payer
• They may be the same or different.
• More business partners can be added to carry
out additional business transactions
Customer Account Group
• Customer masters are assigned to a customer

account group
• Through field status maintenance, account
groups can be setup for one-time customers,
regional customers, internal …
• The customer account group controls both type
and number range assignment for customers
Field Status
• Field status controls the use of each field within

the customer master determining whether a
field is required, optional, suppressed or display
only
• Field status controls are also relevant to a
specific activity — create, change, or display

Business Partners
Sold-to Party
• Customer who orders Sold-to

• Can default for all partner
functions — sold-to, ship-to,
payer, bill-to Ship-to
• Primary type of business
partner
• Independent and cannot be Bill-to
linked to other sold-to
partners Payer
Business Partners
Ship-to Party
Sold-to
• Receive delivery
• Can be linked to more Ship-to
than one sold-to address
Bill-to
Payer
Business Partners
Bill-to Party
Sold-to
Ship-to
• Partner who is delivered
the invoice
• Can be linked to more Bill-to
than one sold-to address
Payer

Business Partners
Payer
Sold-to
Ship-to
• Partner who pays the bill Bill-to

• Can be linked to more
than one sold-to address Payer
Single and Multiple

Ship-to Parties
Sold-to: 10
Single ship-to
Ship-to: 10 Bill-to: 10 Payer: 10
Multiple ship-to’s
Sold-to: 10
Single payer
Ship-to: 11 Ship-to: 10 Bill-to: 10 Payer: 10
Business Partners
Sold-to Sold-to
Ship-to Bill-to Ship-to
Ship-to Payer Ship-to
Ship-to Ship-to

130. Review Sold-to, Ship-to, and Bill-to Account

Groups
131. Create Customer
132. Create Ship-to Party
133. Assign Ship-to Party to Customer

Unit 16
(SD)
- Master Data -

Master
Data
SD
Master Data
• Master Data is relatively fixed

– Material Master Data
– Vendor Master Data
– Purchasing Information Record
– General Ledger Master Data
• Before making the Master Data configurations,

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Customer
Master
Data
Material Pricing
Pricing
• Highly touted “World-class” functionality

• Very easily tailored to meet business needs
• A very robust module in SAP
• Gross to net pricing for material

Standard Pricing Process
• Standard Pricing
– Calculates the gross price
– Then applies
– Discounts
– Surcharges
– Applicable Taxes
– Calculates the final price
• Final price = gross price - discounts +

surcharges + taxes
Cost-Plus Pricing Process
• Cost-plus pricing
– Captures the base cost
– Then applies
– Markup
– Discounts
– Surcharges
– Applicable Taxes
– Calculates the final price
• Final price = cost + markup - discounts +

surcharges + taxes
Pricing Components
• Pricing uses tables to match the condition of

order to the applicable pricing routine
• These routines can
– Add/Subtract amounts, percentages
– Give dollar, weight, quantity breaks/additions
– Accrue

Pricing Procedure
• Pricing uses one of possibly many procedures

based upon
– Item
– Customer
– Order type
– Sales Area
• The procedure will then apply
– Prices (Gross)
– Discounts & Surcharges
– Freight
– Taxes
Pricing Procedure – (continued)
• Pricing conditions for each item on the order

• Pricing condition uses
– Pricing procedure
– Access sequence
– Conditions type
• Determines adjustments and price
Pricing Process
Line Item in
Sales Order PPEN000
Doc. Pric. Cus. Pric.
Sales Area
Pricing Procedure Proc. Proc.
S000-RE-01
Determination OR=A 43 = 1
Pricing Procedure = RVAJUS
Pricing Procedure
Contains List of Condition Type PR00 = Price
Condition Types
Condition Types Access Sequence PR02 = Price
Point to 10 – Customer/material
Access Sequence 20 – Price list cat./currency/material
30 – Material
Access Sequence
Provides the Search 30 – Material Price = $9.50
Order for Pricing

Pricing Process
Line Pricing CTyp Access Seq. Cond. Tbls.
Item Proced. points to points to contain the
Det. Access Seq. Cond. Tbls. Item Pricing
Sales Area PR00 PR02 Cust. / Mat. N/A

PPEN000 Doc. PP Points to Points to Price List / Cur / N/A
Cust. PP PR02 Cond. Tables Mat. Material $ 9.50
Sales Dist. Doc. Cust. Price

Div
Org. Chan. PP PP Prod.
0001 01 01 A 1 RVAA01
0001 01 01 A 2 RVAB01
0001 01 01 B 1 RVWIA1
0001 01 01 C 1 RVCA01
S000 RE 01 A 1 RVAJUS
S000 WH 01 A 1 RVAJUS
Price Acces Access Access

Prod. Ctyp Description seq. Seq. No. Description
RVAJUS PR00 Price PR02 PR02 10 Customer/material with release status
PB00 Price (Gross) 20 Price list cat./cur/mat with rel status
KA00 Sales deal K305 30 Material with release status
K007 Customer Discount K307 K305 10 Customer/material with release status
K004 Material K304 K307 10 Customer with Release Status
K005 Customer/Material K305 K304 10 Material with release status
Price Agreements
• Standard price • Detailed price

agreements agreements
– Product – Pricing scales
– Customer – Rebates
– Customer & material – Customer expected
– Customer group & price
material group
Credit Limits and Checking
• Define automatic credit limit checks to your

company’s requirements
• You can also define at what point the system
carries out these checks (order, delivery, goods
issue, and so on)
• A credit representative is automatically alerted
to a customer’s critical credit situation as soon
as order processing starts
• Employees can be automatically notified of
critical credit situations via internal mail

Credit Limits and Checking – (continued)
• Credit representatives are able to check a

customer’s credit situation to decide whether the
customer should be granted credit
• Works in distributed systems
– Central financial accounting
– Non-central sales and distribution on several sales
and distribution computers
Credit Check
• You can use this function at any time within

service processing to call up information about
the current credit status of a customer
• Credit limit can be checked manually or
automatically
• The system generally checks the planned costs
without tax
• If a customer has exceeded their credit limit, the
system issues a warning
Credit Check – (continued)
• The checks can be carried out at various times

during the sales order cycle, from order receipt
to delivery
• You can define a credit check for any valid
combination of the following data:
• Risk category
• Document credit group
• Credit control area

134. Create Material Prices

135. Create Customer Specific Material Price
136. Create Customer Discount
137. Establish Credit Limit for Customer

Unit 17
(SD)
- Rules -

Rules
SD
Rules

Transactions
Transactions

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Assign Sales Area to Pricing

Procedure
Pricing Procedure Assignment uses the

combination of:
• Sales Area
• Document Pricing Procedure
• Customer Pricing Procedure
Each combination of these has a pricing procedure

assigned
Availability Check
• In determining the material availability date the

system can include specific stocks if selected,
such as:
– Safety stock
– Stock in transfer
– Quality inspection stock
– Blocked stock
– Restricted use stock
– All movements of stock

Credit Checking
• Static Credit Limit Check

– Open Orders
– Open Deliveries
– Open Billing documents
– Open Items (accounts receivable)
• Dynamic credit limit with credit horizon check
(future dates)
• Credit check to maximum document value (per
order)
Shipping Functions
• Shipping Point Determination

– The shipping point is selected for each line item
based on the shipping point determination process
– Shipping point based on:
– Shipping condition
– Loading group
– Delivering plant
Shipping Functions – (continued)
• Route Definition
– Delivery method and the transit time
– ‘Dummy’ routes can be used to easily define transit
time
• Route Determination
– Proposed route is chosen using
– Shipping point
– Destination country
– Transportation zone
– Shipping condition

Revenue Assignment Determination
• Transfers billing values from the Sales and

Distribution to Finance
• Used to recognize revenue
• Keys used to allocate revenue to the proper
account
• Defines the G/L accounts that billing entries are

posted to — revenue, sales deductions,
surcharges, freight charges, etc.
Condition Chart of Sales Customer Account General Ledger
Application Type Accounts Organization Account Group Key Account
V KOFI C001 S001 01 ERL 600999
Sales Condition Sales Sales Customer Pricing Chart of

Tables Document Document Master Procedure Accounts
138. Assign Sales Areas to Pricing Procedure

139. Define Availability Check for Sales Orders
140. Assign Sales Document to Credit Check
141. Create Shipping Point Determination
142. Create Revenue Account Assignment Key

Unit 18
(SD)
- Transactions -
SD
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Document Types
Inquiry Quotation Returns Contract
Scheduling
Sales Order Cash Sales Consignment
Agreement
Returnable Credit
Rush Order Debit Memo
Packaging Memo
Order Processing Functionality
• Delivery scheduling
• Availability check
• Transfer of requirements to Material
Requirements Planning
• Pricing
• Credit check
• Shipping point and route determination
• Foreign trade and license processing
• Document flow

Delivery Scheduling
• Automatic scheduling of essential shipping

activities
• Calculated using defined activity times
• Resulting in scheduled activity dates
• Determined using backward and forward
scheduling rules
Delivery Scheduling – (continued)
• Structure of sales documents

Header
Line Item # 1
Schedule Line # 1
Schedule Line # 2
Line Item # 2
Schedule Line # 1
Delivery Scheduling Terminology
• Transportation lead time

– Time required to schedule transportation
• Pick/Pack time
– Time required for picking and packing
• Load time
– Time required to load
• Transit time
– Time required to transport goods from shipping point
to ship-to

Backward Scheduling
Order Material Transp. Goods Requested

Date Availability Sched. Loading Issue Delv. Date
1st 2nd 3rd 4th 5th 6th
Transp. Loading Transit

Pick & Pack
Sched. Time Time
Time (2 days)
(2 days) Time (1 day)
(1 day)
Forward Scheduling
Requested New
Order Material Transp. Goods Delv. Delv.
Date Loading Issue Date Date
Availability Sched.
1st 2nd 3rd 4th 5th 6th 7th
Transp. Loading Transit
Pick & Pack Sched. Time Time
Time (2 days) Time (1 day) (2 days)
(1 day)
Availability Check
• Determines the material availability date

• Considers inward and outward movement of
inventory — customizable
• Influences partial deliveries by
– Proposing a quantity that can be delivered on the
requested date (complete delivery)
– Determines earliest date for full delivery
– Determines the number and dates for partial
deliveries to fulfill the order

Availability Check – (continued)
• In determining the material availability date the

system can include specific stocks if selected,
such as:
– Safety stock
– Stock in transfer
– Quality inspection stock
– Blocked stock
– Restricted use stock
– All movements of stock
Transfer Requirements to
• Ordered quantities are passed to Material

Requirements Planning
• Controlled by the schedule line category
• Blocking of documents can affect requirements
passing — delivery block
Pricing
• Highly touted “world-class” functionality

• Very easily tailored to meet business needs
• A very robust module in SAP
• Gross to net pricing for material

Credit Check
• Efficient means to implement credit

management
• Integrated with Financial Accounting (FI) -- Via
credit control area
• Automatically alerts when a credit check fails
• Comprehensive credit management reporting
Shipping Point and Route

Determination
• A shipping point is determined for each line item

— shipping point determination
• A delivery can only be processed from one
shipping point
• Routes - route to be traveled & transit time are
determined using customized rules
• Routes can be used to simply define transit time
Foreign Trade and License Processing
• Predefined trade areas — NAFTA, EU

• Automated reporting for trade areas
• Automated controls
– License management
– Embargo lists
– Control by customer, country, product, point in time

Document Flow
• The document flow feature allows you to find the

status of an order at any point in time. The SAP
system updated the order status every time a
change is made to any of the documents created
in the customer order management cycle (Order
to Cash).
144. Create Sales Order

151. Bill Customer
153. Review Document Flow

Unit 19
(SD)
- Transactions -
SD
Transaction Data

• Unlike master data, aggregate transactional
data is dynamic – each transaction is unique

SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Material Listing and Exclusion
• Inclusions or exclusions (availability) of material

for a customer or a customer group
• Material Listing — products that can be sold
• Material Exclusion — products that cannot be
sold
Product Substitution Material

Determination
• Substitution of materials during sales order

processing
– Automatic
– Manual
• Examples:
– Substitute a standard product with an appropriate
replacement material
– Substitute based on a customer preference
– Substitute based on selection list (manual)

Customer Material Info Record
• Data on a material defined for one specific

customer is stored in the customer material
information records
– Customer-specific material number
– Customer-specific material description
– Customer-specific data on deliveries and delivery
tolerances
154. Create Customer Material Info Record

155. Create Sales Order Using Customer Info
Record
159. Bill Customer

Unit 20
(SD)
- Transactions -
SD
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Scheduling Agreements
• Defines specific product quantities and delivery

dates for a customer
• Schedule lines and processed through standard
delivery processing
• Availability check is performed during creation
and quantities are passed to MRP
• System automatically updates delivered
quantities
Scheduling Agreements
(continued)
Scheduling
Agreement Delivery
02/10 150
Date Qty Delivery
02/15 150 05/10 150
05/15 150 Delivery
08/15 150 08/10 150
11/15 300
Delivery
11/10 300

161. Create Scheduling Agreement

162. Process Deliveries for a Scheduling
Agreement
163. Display Scheduling Agreement
165. Bill Customer
166. Run Customer Credit Check

Unit 21
(SD)
- Transactions -
FI MM SD
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Item Proposal
• Frequently occurring combinations of material

and quantities used by a customer
• System can suggest the item proposal during
order entry
• Transferred into a sales order document
• Selected from a selection list
• Can be assigned to more than one customer
master records
168. Create Item Proposal

169. Assign Item Proposal to Customer
170. Create Sales Order Using Item Proposal
171. Create Sales Order Value Discount
172. Run Material Requirements Planning
173. Create Purchasing Information Record for PPEN
174. Assign Source of Supply
175. Create Purchase Order via Requisition
Assignment List

Unit 22
(SD)
- Transactions -
FI MM SD
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Shipping Overview
• Comprehensive functionality to support picking,

packing and loading functions
• Work list and deadline monitoring
• Functions with backorder processing
• Tightly coupled to the MM and FI modules
• Facility for transportation management
Shipping Overview – (continued)
Order 1 Order 4 Order 5
Order 2 Delivery 8…13 Delivery 8…16
Order 3 Delivery 8…14
Delivery 8…12 Delivery 8…15
Order Partial Complete

Combination Delivery Delivery

• Delivery creation activities

– checks order and materials to determine if a delivery
is possible
– delivery block, incompleteness
– confirms availability
– confirms export/foreign trade requirements
– determines total weight & volume
• Delivery creation activities

– generates packing proposal
– considers partial deliveries
– updates route assignment
– assigns picking location
– determines lot batches
– updates sales order: status, delivery qty
Delivery Notes
• Initiates the delivery process

• Control mechanism for the process
• Changes to delivery are allowable - products,
quantities
Picking Each step in

the delivery
Delivery Packing process
Note Loading updates the
delivery
Post Goods Issue note status

Delivery Due List
• Produces a work-list of deliveries

• Encompasses deliveries and transfers
• Can be scheduled to run in batch
• Automatically combines deliveries
Picking
• Quantities based on delivery

• Assigned date when picking should begin
• Automated storage location assignment
• Supports serial number tracking and batch
management
• Integrated with Warehouse Management (WM)
Packing
• Identifies which packaging is to be used for

specified products
• Identifies and updates accounts associated with
returnable packaging
• Tracks the packed product by container
• Insures weight/volume restrictions are enforced

Goods Issue
• Event that indicates the change in ownership of

the products
• Reduces inventory
• Automatically updates the G/L accounts
• Ends the shipping process and prevents
changes to the shipping documents
Goods Issue – (continued)
General Ledger
Cost of Goods Sold Inventory
Debit Credit Debit Credit
1000 1000
179. Run Delivery Due List


Billing Overview
• Automated invoicing based on sales orders

and/or deliveries
• Functionality for processing credit/debit memos
and rebates
• Integration with Financial Accounting (FI) and
Controlling (CO)
• Updates customer’s credit data
• Can create pro forma invoices
Billing Overview – (continued)
Sales Invoice
Sold To: General Ledger Account Assignment

Rushmore Group
Sales Org: S001

Dist Channel: RE Customer A/R Recon Revenue
Debit Credit Debit Credit Debit Credit
Division: 01
500 500 500
Conditions/Price:
$500
Billing Methods
Delivery 8…20 Invoice 9…45

Delivery based Order 6
Invoicing Delivery 8…21 Invoice 9…46
Delivery 8…33
Collective Order 9
Delivery 8…34 Invoice 9…68
Invoicing
Invoice 9…91
Split
Invoicing
Invoice 9…92

Billing Plans
• Periodic — total amount for a planned billing

period
• Milestone — distributing the total amount over
multiple billing dates - typically used with the
project system (PS)
• Installment — evenly proportioned amounts and
defined payment dates
• Resource related — consumed resources such
as service or consulting
Billing Documents
• Explicitly specify documents

• Billing due list — builds a work list of invoices
that should be generated
• Automatic posting to Financial Accounting (FI)
182. Run Billing Due List, Invoice Customers


Unit 23
(SD)
- Transactions -
FI MM SD
Transaction Data


SD FI
Sales and Financial
MM CO
PP Mgmt.
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Mgmt. Controlling
Quality
Project
Mgmt.
HR IS
Human Industry
Resources Solutions
Customer Return
Delivery
Customer Return Note
Order received
Goods
Receipt
Payment
to Customer
Quality
Create
Credit Memo Inspection
Customer Return – (continued)
1 Order 14 Delivery 8…56 Invoice 9…68
Quality
2 Return Order Return Delivery
Inspection
Return to Inventory
3 Credit Memo Payment

• Returns document
– Billing block can be proposed
– Use the Order reason field to identify the reason for
the return
– Full access to pricing and ability to re-price
• Return delivery
– Issues a goods receipt to place material into
inventory
• Credit memo
– Billing block must be cleared from Return
– Posts to Financial Accounting (FI)
– Can be processed in batch (background)
– Can be processed collectively (grouped)
184. Create Goods Return Order

185. Create Delivery Note for Return Order
186. Receive Materials from Goods Return Order
187. Check Document Flow
188. Review Stock Overview

189. Transfer Returned Stock to Unrestricted Use

190. Post Customer Credit
191. Create Billing Document
192. Release Billing Document to Accounting
194. Post Payment of Customer Refund
The End!

mySAP PLM
mySAP mySAP mySAP

SRM ERP ECC 6.0 CRM
mySAP SCM
SAP NetWeaver
Business Process Integration – I

Exercises
(ECC 6.0 – Release January 2008)
ECC 6.0 – January 2008 © 2008 SAP AG and The Rushmore Group, LLC
ECC 6.0 – January 2008 © 2008 SAP AG and The Rushmore Group, LLC
BUSINESS PROCESS INTEGRATION – I – (BPI – I)
Unit 2: Customer Order Management Business Cycle Including

Procurement Process for Replenishment of Goods
Purpose of Unit
The purpose of Unit 2 is to demonstrate the Customer Order Management Business Cycle beginning
with a quotation and ending with recording final payment received from the customer. This process will
include the procurement cycle as you will need to procure the items for sale.
ECC 6.0 – Release January 2008 Page 1 The Rushmore Group, LLC
Exercise 1: Logging on to the SAP System

Enter the following:
¾ Select server name provided by the course lead
¾ Click on
¾ Client number provided by course lead
¾ User ID (e.g., User-100) provided by course

lead
¾ Password (e.g., init) provided by course lead
¾ Select EN as the language
¾ (Enter)
Once you have pressed enter, the system will prompt you to change your password the first time you log
on to the system.
The following pop-up screen will appear.
Enter your new password
Repeat your new password
Select (Enter)
This will log you onto the system. The following page is a screen shot of the SAP Easy Access Menu you
should see if you have been successful.
If you can not get logged on to the system, please notify the course instructor.
This is the SAP Easy Access Menu. It is from here that most all of your exercises will begin.
Exercise 2: Create Vendor Master

Navigation
Menu Path
Logistics → Materials Management → Purchasing → Master Data → Vendor →
Central → Create
Trans Code XK01
¾ Leave vendor field blank

¾ Company code: C999
¾ Purchasing organization: P999
¾ Account Group: KRED
Reference
¾ Vendor: 100001
¾ Company Code: C999
¾ Purch. Organization: P999
¾ (Enter)
Name
¾ Enter the vendor’s name Your Name _ _ _
Search term
¾ Search term = _ _ _(Your Student Number)
Address
¾ Postal code = 57069
¾ City = Vermillion
¾ Country = US
¾ Region = SD
Communication
¾ Language = English
¾ (Enter)
Note: Page forward past views that do not contain relevant information…
Create Vendor: Control N/A
¾ (Enter)
Create Vendor: Payment transactions N/A
¾ (Enter)
Create Vendor: Accounting Information Accounting

¾ Rec. Account = 300999
¾ (Enter)
Create Vendor: Payment Transactions Accounting
¾ Payt = 0001
¾ Select Check double inv.
¾ (Enter)
Create Vendor: Correspondence Accounting N/A
¾ (Enter)
Create Vendor: Purchasing data
¾ Order Currency = USD
¾ Terms of Payment = 0001
¾ (Enter)
Create Vendor: Partner Functions N/A
¾ (Enter)
¾ (Save)
Record the Vendor Number: _______________
¾ (Exit) To return to SAP Easy Access Menu
Record the system message:

Message
Exercise 3: Create Material Master

Navigation
Menu Path
Logistics → Materials Management → Material Master → Material →
Create (Special) → Trading Goods
Trans Code MMH1
Enter the following information:

System Menu: Defaults → Industry sectors…
¾ Select: Retail
¾ Check Hide industry sector
¾ (Enter)
System Menu: Default→ Views…

¾ Select the views: Basic data 1
Sales: Sales Org. Data 1, Sales: Sales Org. Data 2
Sales: General/Plant Data
Purchasing
MRP 1, MRP 2, MRP 3
General Plant Data/Storage 1
Accounting 1
Make sure these are checked
¾ (Enter)
System Menu: Default→ Organization levels… Copy from…

¾ Select:
Company code: C999 C999
Plant: P999 P999
Sales org: S999 S999
Distribution channel: RE RE
Make sure this is checked
¾ (Enter)
¾ Material SPEN_ _ _
¾ Change Number: Leave Blank
¾ Copy from… Material: SPEN999
¾ (Enter)
Basic data 1 TAB

¾ Change Name of Material from Stick Pen 999 to Stick Pen _ _ _
¾ (Enter)
Sales: Sales Org. 1 TAB

Information will be defaulted into the correct fields with the exception of the pricing data. To input the
pricing data:
¾ Select
In the Screen: Create pricing conditions (PR00) Scale

¾ Scale quantity: 1
¾ Amount: 2.00
¾ (Save)

Message
Exercise 4: Create Customer Master

Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Business Partner →
Customer → Create → Complete
Trans Code XD01
¾ Account group: Sold-to party

¾ Customer: (Leave blank)
¾ Sales organization: S999

¾ Distribution channel: RE
¾ Division: 01
¾ Customer: 1
¾ Sales organization: S999
¾ Reference division: 01
¾ (Enter)
You will create the following customer:
Address TAB
Name
¾ Name: Customer _ _ _
Search term
¾ Search Term: ___
Address
¾ Postal Code: 57069
¾ City: Vermillion
¾ Country: US
¾ Region: SD
Communication
¾ Language: English
¾ Select (Financial Accounting)

Account Management TAB
¾ Rec. Account: 110999
¾ Sort key: 001
Payment transactions TAB

¾ Terms of payment: 0001
¾ Select
Sales TAB
Sales order
¾ Currency: USD
Pricing/statistics
¾ Cust. Pric. Proc.: 1
¾ Cust. Stats. Grp: 1
Shipping TAB
Shipping
¾ Delivery priority: 02
¾ Order Combination: Selected
¾ Shipping Conditions: 01
¾ Delivering Plant: P999
Partial deliveries
¾ Max.part.deliveries: 3
Billing Document TAB

Delivery and payment terms
¾ Incoterms: FOB, Origin Shipping Dock
¾ Payment terms: 0001
Accounting
¾ Account Assign Group: 01
Accounting
¾ Tax Classification:
o UTX2 0
o UTX3 0
o UTXJ 0
¾ (Save)
¾ Record Customer Number ________________________
¾ (Cancel) To return to SAP Easy Access Menu

Message
Exercise 5: Create Customer Quotation

Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Quotation → Create
Trans Code VA21
¾ Quotation type: QT
Organizational Data
¾ Sales Organization: S999
¾ Division: 01
¾ (Enter)
The ‘Item Overview’ screen of the quotation appears.
¾ Quotation: Leave blank (system assigns number)
¾ Sold-to party: Number from Creating a Customer
¾ Ship-to party: Leave blank
¾ PO number: Any number or text
Item overview Tab

¾ Valid to date: Date = one month ahead of today’s date
¾ Material: SPEN_ _ _
¾ Order quantity: 150
¾ (Enter)
¾ (Save)
Record Quotation Number: _______________________

Message
Exercise 6: Create Sales Order with Reference to a Quotation

Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Order → Create
Trans Code VA01
¾ Order type: OR
Organizational Data
¾ Sales Organization: S999
¾ Division: 01
¾ Click on the button.

¾ Note that the system defaults to the Quotation Tab. Enter the number of the quotation created in the
previous exercise.
¾ Select
The system copies the details of the quotation into the Sales order.
Select the option that gives you a complete delivery on the proposed date.
¾ PO Number: 123-_ _ _
¾ PO Date: Today’s date
Sales Tab
¾ Delivering plant P999
¾ (Enter) Enter through any warnings

Record the Net Value of the Sales Order: _____________________
¾ (Save)
Record Order Number: _________________________

Message
Exercise 7: Check Stock Status

Navigation
Menu Path
Logistics → Materials Management → Inventory Management →
Environment → Stock → Stock Overview
Trans Code MMBE
¾ Plant: P999
¾ Display version: 1
¾ (Execute)
¾ Select the Company Code line in the display.
¾ Select
¾ This will open a pop-up window showing the details of the inventory by stock type at the level you
selected.
¾ Check the unrestricted use quantity (Unrestricted use) stock type
¾ Check the sales orders quantity (Sales orders) stock type
¾ Check the delivery quantity (Scheduled for delivery) stock type
Record the storage location and quantity of inventory for each Stock type:
Company Code
Stock Type Stock
Unrestricted Use
Sales Orders
Scheduled for Delivery
Exercise 8: Run Material Requirements Planning – Single Item, Single

Level
Navigation
Menu Path
Logistics → Materials Management →
Materials Requirements Planning (MRP) → MRP → Planning →
Single-Item, Single-Level
Trans Code MD03
¾ Enter material number: SPEN_ _ _

¾ Enter plant: P999
MRP control parameters

¾ Processing key: NETCH
¾ Create pur. req.: 2
¾ Deliv. schedule: 3
¾ Create MRP list: 1
¾ Planning mode: 1
¾ Scheduling: 1
Process control parameters

¾ Select Display results before they are saved
¾ (Enter)
¾ A warning message appears - please check input parameters
¾ (Enter) again to confirm and check the warning message
¾ Review the MRP list
Note: Your MRP list may appear different depending on dates and orders.
¾ (Save)

Message
Exercise 9: Convert Purchase Requisition to Purchase Order

Navigation
Menu Path
Logistics → Materials Management →
Materials Requirements Planning (MRP) → MRP → Evaluations →
Stock/Reqmts List
Trans Code MD04
Individual access Tab

¾ Plant: P999
¾ (Enter)
¾ Select Purchase Requisition to be converted and click (Details of Element)
¾ or Double click on the purchase req to be converted.
¾ Click on the button
¾ Enter Vendor (From the Vendor you created – 100???)
Org. Data Tab

¾ Purch. Org. P999
¾ Purch Group 999
¾ Company Code C999
¾ (Enter)
¾ Single Click on Open Requisitions line in the left window
¾ Then Select (Adopt)
¾ Enter a Net Price: 1.25

¾ Increase the PO quantity to: 1000
¾ (Enter)
¾ Record the amount of the purchase order from the Conditions Tab on the Header $ _____________
¾ (Save)
¾ Record the new purchase order number._____________________
¾ Select the (Refresh) button to refresh the Stock/Reqmts List

¾ Notice the MRP elements change from the old PurReq to display the new POitem.

Message
Exercise 10: Create Goods Receipt

Navigation
Menu Path
Goods Movement → Goods Receipt → For Purchase Order →
GR for Purchase Order (MIGO)
Trans Code MIGO_GR
¾ Enter your PO # 4500000???
¾ (Execute)
¾ Ensure each line item OK is checked
¾ Enter storage location 10
Notice that the quantity from the PO defaults as the quantity to receive.
¾ Select or (Post)

Message
Exercise 11: Create Invoice Receipt from Vendor

Navigation
Menu Path
Logistics → Materials Management → Logistics Invoice Verification →
Document Entry → Enter Invoice
Trans Code MIRO
Basic data Tab

¾ Invoice Date: Today's Date
¾ Check your Company Code: C999
¾ Enter amount: Enter amount from invoice
¾ Tax code: XI
¾ PO number: (Enter your purchase order number – 4500000???)
¾ (Enter)
¾ Use the button to see if the postings are correct.
¾ (Post)

Message
Exercise 12: Post Payment to Vendor

Navigation
Menu Path
Accounting → Financial Accounting → Accounts Payable → Document Entry →
Outgoing payment→ Post
Trans Code F-53
¾ Document date: Today
Bank data:
¾ Account: 100999
¾ Amount: Enter the amount of the outgoing payment from invoice
¾ Text: Invoice Number or other text
Open item selection:

¾ Account: Enter your Vendor # (Created in Exercise 2)
¾ All other settings remain unchanged.
¾ Select
¾ Review the balance.
¾ Double click on “USD gross” amount for the Invoice Receipt until “Not assigned” is $0.00
¾ (Save)
¾ Record the document number ______________________
¾ (Exit)

Message
Exercise 13: Create Delivery Note for Sales Order

Navigation
Menu Path
Logistics → Sales and Distribution → Shipping and Transportation →
Outbound Delivery → Create → Single Document →
With Reference to Sales Order
Trans Code VL01N
¾ Shipping point: S999
Sales order data

¾ Selection date: Enter a date 7 days from today
¾ Order: Enter the order number of the sales order created earlier
¾ (Enter)
The system defaults the items and quantities from the sales order that are scheduled to be delivered.
Item Overview Tab

¾ Click on the line item 10
¾ (Item Details)
¾ (Back)
Picking Tab:
Verify system selected:
¾ Plant = P999
Enter the storage location for each item

¾ SLoc = 10
¾ (Enter)
¾ (Save)
¾ Record the Outbound Delivery number: _________________

¾ (Exit)

Message

Navigation
Menu Path
Trans Code
Database selections
¾ Plant: P999
¾ (Execute)
¾ Select the plant line in the display.
¾ Select
selected.

Plant
Storage Location
Stock Type Stock
Unrestricted Use
Sales Orders
¾ (Exit)
Exercise 15: Picking Materials on Delivery Note

Navigation
Menu Path
Outbound Delivery → Change → Single Document
Trans Code VL02N

¾ Outbound Delivery Outbound delivery number from the previous exercise.
¾ (Enter)
The material delivery quantity is proposed.
Picking Tab
¾ Enter Pick quantity to match the proposed delivery quantity
¾ Verify that the storage location is Inventory
¾ (Save)
¾ (Exit)

Message
Exercise 16: Post Goods Issue

Navigation
Menu Path
Trans Code

¾ Select
The system returns a message indicating change to the delivery note.
¾ (Exit)

Message

Navigation
Menu Path
Trans Code
Database selections
¾ Plant: P999
¾ (Execute)
¾ Select
selected.

Plant
Storage Location
Stock Type Quantity
Unrestricted Use
Sales Orders
¾ (Exit)
Exercise 18: Bill Customer

Navigation
Menu Path
Logistics → Sales and Distribution → Billing → Billing Document → Create
Trans Code VF01
The system will default the last delivery document created.
¾ (Execute)
The system displays the customer and the materials on the delivery with total values to be billed.
¾ Record the total amount billed to the customer: $____________________
¾ (Save)
Record the billing document number that is displayed at the bottom of the screen ________________
¾ (Exit)

Message
Exercise 19: Post Receipt of Customer Payment

Navigation
Menu Path
Accounting → Financial Accounting → Accounts Receivable →
Document Entry → Incoming Payments
Trans Code F-28
¾ Document Date: Today’s date

¾ Company Code: C999
¾ Currency/Rate: USD
Bank data:
¾ Account: 100999
¾ Amount: Enter the amount of the payment (from sales order)
Open item selection

¾ Account: Enter Your customer # (Created in Exercise 4)
¾ Select
¾ Review the balance.
¾ Double click on “USD gross” amount for the Customer Invoice until “Not assigned” is $0.00
¾ (Save)
¾ Record the document number ______________________
¾ (Exit)

Message
Exercise 20: Document Flow

Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Order → Display
Trans Code VA03
¾ Enter your order number.

¾ Select the following from the System Menu: Environment → Display document flow
The system displays a list of documents associated with the order.
¾ Click on the line of the GD goods issue: delvy 49000….###
¾ Select
¾ Select to view the account postings for this goods movement.
¾ (Back) twice to get to the overview screen
It can be seen that the:

1. The entire document flow is shown.
2. There are no open documents.
3. The business cycle is complete.
Note: You can view the document flow from the Sales Order, Delivery or Billing screens.
¾ Click on the line of the Standard Order

¾ Select the
¾ The document flow can be seen in greater detail.
¾ Click on the line of the Outbound Delivery
¾ Select the
¾ (Continue)
¾ (Exit) Twice To return to SAP Easy Access Menu
Unit 3:
Purpose of Unit
The purpose of Unit 3 is to establish the Organizational Structure for Financial Accounting (FI). Once
the various organizational elements are defined they will need to be assigned. This unit will establish
the core structure necessary to conduct financial transactions within the system.
Exercise 21: Create Company Code

Purpose of Exercise
The purpose of this exercise is to define a company code. A company code represents a legal
organizational entity and a separate accounting unit in Financial Accounting (FI). This organizational
element is often referred to as a balanced set of books. The company code is the level at which all
accounting transactions are captured.
Navigation
Menu Path Tools → Customizing → IMG → Execute Project→
Enterprise Structure → Definition → Financial Accounting →
Edit, Copy, Delete, Check Company Code
Trans Code SPRO
Double click on Edit Company Code Data


¾ Company Code = C_ _ _ (where _ _ _ is your student number)
¾ Company Name = (Your Name) Pen Inc. (e.g., John Pen Inc.)
Additional data
¾ Country = US
¾ Currency = USD
¾ Language = EN
¾ Select (Address)
Name
¾ Name = (Your Name) Pen Inc. (e.g., John Pen Inc.)
Search Term
¾ Search term = _ _ _ (Your student number)
Address
¾ Street = 123 Forest Avenue
¾ Postal code = 57069
¾ Country key = US
¾ Region = SD
¾ (Copy)
¾ (Save)
¾ (Copy)
Message
¾ (Exit)
¾ (Cancel)
Exercise 22: Create Chart of Accounts

Purpose of Exercise
The purpose of this exercise is to create a Chart of Accounts. All general ledger accounts for your
company will exist within your Chart of Accounts.
Navigation
Financial Accounting → General Ledger Accounting → G/L Accounts →
Master Data → Preparations → Edit Chart of Accounts List
Trans Code SPRO

¾ Chart of Accts: C_ _ _
¾ Description: Chart of Accounts – Pen Inc_ _ _
General specifications
¾ Maint. Language: English
¾ Length of G/L Account Number: 6
Integration
¾ Controlling integration Manual creation of cost elements
¾ (Enter)
¾ (Save)
¾ (Exit)

Message
Exercise 23: Assign Company Code to Chart of Accounts

Purpose of Exercise
The purpose of this exercise is to assign your company code to your chart of accounts. A company
code can have only one chart of accounts. A chart of accounts can have more that one company code.
If you have several legal entities within your enterprise, it would make sense to have all of the entities
use the same chart of accounts. This would facilitate the creation of consolidated financial statements.
Navigation
Master Data → Preparations → Assign Company Code to Chart of Accounts
Trans Code SPRO

¾ Select your company code C_ _ _
¾ Chrt/Accts C_ _ _
¾ (Save)
¾ (Exit)

Message
Exercise 24: Assign Company Code to Fiscal Year Variant

Purpose of Exercise
The purpose of this exercise is to assign your company code to a fiscal year variant. A fiscal year variant is used
to define the following:
• how many posting periods a fiscal year has
• how many special periods you need
• how the system is to determine the posting periods when posting
When defining your fiscal year, you have the several options:
• Your fiscal year is the calendar year
• Your fiscal year is not the same as the calendar year and is not year-dependent
• Your fiscal year is not the same as the calendar year and is year-dependent
Navigation
Financial Accounting → Financial Accounting Global Settings → Fiscal Year →
Assign Company Code to a Fiscal Year Variant
Trans Code SPRO

¾ Select your Company code C_ _ _
¾ Fiscal Year Variant K1 (Cal. Year, 1 Special Period)
¾ (Save)
¾ (Exit)

Message
Please notify your instructor if you encounter problems in saving your entry due to the table
locking mechanism.
Exercise 25: Create Credit Control Area

Purpose of Exercise
The purpose of this exercise is to create an organizational structure that is used to specify and control
the credit limits for customers.
A credit control area can include one or more company codes. Including more than one company code
in an enterprise allows for the control of a customer’s credit across all company codes assigned to that
credit control area. It is not possible to assign a company code to more than one credit control area.
The credit limits must be specified in the same currency for all company codes in a credit control area.
Navigation
Enterprise Structure → Definition → Financial Accounting →
Define Credit Control Area
Trans Code SPRO

¾ Cred. contr. area C_ _ _
¾ Currency USD
¾ (Back)
¾ Description Pen Inc. Credit Control Dept._ _ _
¾ (Save)
¾ (Exit)

Message
Exercise 26: Assign Company Code to Credit Control Area

Purpose of Exercise
This exercise has you assign your company code to the credit control area you created to manage your
customers credit limits.
Navigation
Enterprise Structure → Assignment → Financial Accounting →
Assign company code to credit control area
Trans Code SPRO

¾ Select your Company code C_ _ _
¾ CCAr field C_ _ _
¾ (Save)
¾ (Exit)

Message
Exercise 27: Assign Permitted Credit Control Areas to Company Code

Purpose of Exercise
In this activity you can enter additional credit control areas which are allowed for each company code,
in addition to this default credit control area.
The control area assigned to the company code only acts as a default value and is used, for example,
for crediting commitments in the case of non-assignable incoming payments from customers.
Otherwise, with every payment, the credit amount is deducted in the control area in which it was also
added (as previously).
Navigation
Financial Accounting → Account Receivable and Accounts Payable →
Credit Management → Credit Control Account →
Assign Permitted Credit Control Areas to Company Code
Trans Code SPRO

¾ Company Code C_ _ _
¾ Credit contr. area C_ _ _
¾ (Save)
¾ (Exit)

Message
Unit 4:
Purpose of Unit
The purpose of Unit 4 is to establish the Organizational Structure for Material Management (MM).
Once the various organizational elements are defined they will need to be assigned. This unit will
establish the core structure necessary to conduct material management transactions within the system.
Exercise 28: Verify Valuation Area

Purpose of Exercise
The purpose of this exercise is to verify that the valuation area is set to plant level.
Having the valuation set at the plant level facilitates plant level materials requirements planning.
Navigation
Menu Path:
Tools → Customizing → IMG → Execute Project→
Enterprise Structure → Definition → Logistics – General →
Define valuation level
Trans Code: SPRO
The defined valuation level is preset at the plant level.
Exercise 29: Define Plant

Purpose of Exercise
This exercise will allow you to create a plant. A plant is an organizational structure within our company.
As an organizational structure, the plant is assigned to a company code. However a company code
can have several plants.
Navigation
Define, copy, delete, check plant
Trans Code SPRO
¾ Double click on Define Plant

¾ Plant P_ _ _ (_ _ _ = your student number)
Detailed Information
¾ Factory calendar US
¾ Select (Address)
Name
¾ Name Pen Inc Warehouse_ _ _
¾ Name 2 Plant _ _ _
Search Term
¾ Search term ___
Street Address
¾ Street 123 Glen Avenue
¾ City Vermillion
¾ Postal code 57069
¾ Country key US
¾ Region SD
¾ (Copy)
¾ (Save)
¾ (Copy)

Message
¾ (Exit)
¾ (Cancel)
Exercise 30: Define Storage Locations (Inventory and Quality)

Purpose of Exercise
This exercise will have you create the locations where our inventory will be physically kept.
A storage location is where the quantity of inventory is managed not the value. The value is managed
at the plant level.
A plant can have more than one storage location.
Navigation
Enterprise Structure → Definition → Materials Management →
Maintain storage location
Trans Code SPRO

¾ Plant P_ _ _
¾ (Continue)

¾ SLoc 10
¾ Description Inventory
¾ SLoc 20
¾ Description Quality
¾ (Save)
¾ (Exit)

Message
Exercise 31: Define Purchasing Organization

Purpose of Exercise
The purpose of this exercise is to create the Purchasing Organization. The purchasing organization
procures materials and services, negotiates conditions of purchase with vendors, and bears
responsibility for such transactions.
The purchasing organization is the organizational unit that subdivides an enterprise according to the
requirements of purchasing.
Navigation
Enterprise Structure → Definition → Materials Management →
Maintain purchasing organization
Trans Code SPRO

¾ Purch Organization: P_ _ _
¾ Purch. Org. Descr.: Purchasing Org. _ _ _
¾ (Save)
¾ (Exit)

Message
Exercise 32: Create Purchasing Group

Purpose of Exercise
This exercise has you create a purchasing group. A purchasing organization (such as created in the
previous exercise) can be subdivided into purchasing groups, which consist of buyers responsible for
certain day-to-day purchasing activities (e.g., precious metals, services, etc.).
Navigation
Materials Management → Purchasing → Create Purchasing Groups
Trans Code SPRO

¾ Purchasing Group ___
¾ Desc Pur. Grp. Type in Your Name
¾ Tel. No. Pur. Grp 605 555 1414
¾ (Save)
¾ (Exit)

Message
Exercise 33: Assign Plant to Company Code

Purpose of Exercise
This exercise has you assign your plant to your company code. This will facilitate the recording or
tracking of transactions at the plant level. Each plant must be assigned to a company code. A plant
can only belong to one company code.
Navigation
Enterprise Structure → Assignment → Logistics – General →
Assign plant to company code
Trans Code SPRO

¾ CoCd (Company Code): C_ _ _
¾ Plnt (Plant): P_ _ _
¾ (Enter)
¾ (Save)
¾ (Exit)

Message
Exercise 34: Assign Purchasing Organization to Company Code

Purpose of Exercise
The purpose of this exercise is to assign your purchasing organization to your company code. The
assignment can be done differently based on the type of purchasing your organization does. For
example:
• You can assign a purchasing organization to several company codes. This facilitates
corporate-group-wide purchasing.
• You can assign a purchasing organization to one company code. This facilitates company-
specific purchasing.
• You can assign a purchasing organization to no company code. This purchasing organization
can then procure for all plants assigned to it, without regard to the company code to which it
belongs.
Navigation
Enterprise Structure → Assignment → Materials Management →
Assign purchasing organization to company code
Trans Code SPRO

¾ Select your Purchasing Organization
¾ CoCd (Company Code): C_ _ _
¾ (Enter)
¾ (Save)
¾ (Exit)

Message
Exercise 35: Assign Purchasing Organization to Plant

Purpose of Exercise
This exercise allows you to assign your purchasing organization to a plant for plant specific purchasing.
A purchasing organization can be assigned to one or more plants.
Navigation
Enterprise Structure → Assignment → Materials Management →
Assign Purchasing Organization to Plant
Trans Code SPRO

¾ POrg (Purchasing Organization): P_ _ _
¾ Plnt (Plant): P_ _ _
¾ (Enter)
¾ (Save)
¾ (Exit)

Message
Exercise 36: Setup Parameter ID

Purpose of Exercise
The purpose of exercise is to establish standard default entries for your user ID.
The parameters established in this exercise provide the default information for your transaction
screens. When establishing defaults for your ID, you would generally not want to create default
parameter values for entries that change frequently.
Navigation
Menu Path
System Menu: System → User Profile → Own Data
Trans Code
Select the Parameters tab

Enter the PID and Parameter Value in ALL CAPITALS as the parameter values are case sensitive!
Enter the following Values:
Description (this comes from the
Parameter (PID) Parameter Value Parameter ID and does not need to
be entered by the user)
WRK P_ _ _ Plant
BUK C_ _ _ Company Code
EKG ___ Purchasing Group
EKO P_ _ _ Purchasing Organization
FWS USD Currency Units
GJR 2007 Fiscal Year
KPL C_ _ _ Chart of Accounts
¾ (Enter) to display the short text description
¾ (Save)
Note: This process created a new session – you may close one session if you wish.

Message
To find the Parameter IDs:

¾ Navigate to the screen that holds the field that requires the parameter and hit F1
¾ Select (Technical information)
¾ Then look for the three digit “Parameter ID” code on the Technical information screen.
¾ Enter this code in the parameter column followed by your most common value for that entry.
Unit 5:
Purpose of Unit
The purpose of Unit 5 is to establish some of the Rules (internal controls) for Financial Accounting (FI).
You have established the organizational structure for FI and now you can begin to establish some rules
with regard to the creation and of Master Data and Transactions.
Exercise 37: Create Account Groups

Purpose of Exercise
The account group is a classifying feature within the G/L account master records. The account group
is a required entry.
The account group determines the fields for the entry screens if you create or change a master record
in the company code. In the account group a number range interval is defined to which accounts can
be assigned. Field statuses for each account group control the behavior of the fields when you are
creating a general ledger account such as whether or not the field is required, suppressed, optional, or
display only.
Navigation
Master Data → Preparations → Define Account Group
Trans Code SPRO
Balance Sheet Accounts

¾
¾ Acct Group BS
¾ Name Balance Sheet Accounts
¾ From acct 100000
¾ To account 399999
¾ (Enter)
¾ Select C_ _ _, Group BS – Balance Sheet Accounts 100000 – 399999
¾
¾ Position Cursor on Account Control
¾ (Choose)
Account Control Suppress Req. entry Opt. entry Display
Currency X
Tax category X
Reconciliation account X
Exchange Rate Difference X
Account managed in ext. system X
Only balances in local crcy X
Alternative account number X
Inflation key X
Tolerance group X
¾ (NEXT)
Account management Suppress Req. entry Opt. entry Display

Line Item Management X
Open item management X
Sort key X
Authorization group X
Administrator X
¾ (Next)
Document entry Suppress Req. entry Opt. entry Display
Reconcil.acct ready for input X
Field status group X
Post automatically only X
Supplement automatic postings X
¾ (Save)
¾ (Back)
Income Statement Accounts

¾
¾ Acct Group PL
¾ Name Profit & Loss Accounts
¾ From acct 400000
¾ (Enter)
¾ Select C_ _ _, Group PL – Profit & Loss Accounts 400000 – 999999
¾
¾ (Choose)
Currency X
Tax category X
Exchange rate difference X
Inflation key X
Tolerance group X
¾ (Next)
¾
Sort key X
Administrator X
¾ (Next)
¾ (Save)
¾ (Back)
Reconciliation Accounts
¾
¾ Acct Group RA
¾ Name Reconciliation Accounts
¾ From acct 110000
¾ (Enter)
¾ (Save)
¾ Select C_ _ _, Group RA - Reconciliation Accounts 110000 – 300999
¾
¾ (Choose)
Currency X
Tax category X
Exchange rate difference key X
Inflation key X
Tolerance group X
¾ (Next)
¾
Sort key X
Administrator (Accounting Clerk) X
¾ (Next)
¾ (Save)
¾ (Back)
¾ (Exit)

Message
Exercise 38: Define Retained Earnings Account

Purpose of Exercise
The purpose of this exercise is to designate an account as the retained earnings account in financial
accounting. The retained earnings account is tied to a variety of accounts and is used in closing the
fiscal year. At the end of a fiscal year, the system carries forward the balance of the P&L account to
the retained earnings account.
Navigation
Menu Path:
Tools → Customizing → IMG → Execute Project→
Master Data → Preparations → Define Retained Earnings Account
Trans Code: SPRO

¾ Chart of Accounts C_ _ _
¾ (Enter)
P&L statmt Account
RE 330_ _ _
¾ (Enter)
Acknowledge the warning by pressing
¾ (Enter)
¾ (Save)
¾ (Exit)

Message
Exercise 39: Review Field Status Variant

Purpose of Exercise
A field status variant groups together several field status groups. You assign a field status variant to
each company code.
The field status group specifies which fields are ready for input, which fields must be filled or which
fields are suppressed when entering documents. Specifying which fields are required, suppressed,
optional, or display only when using the various general ledger accounts. A field status group is
assigned to a general ledger account when it is created.
Navigation
Financial Accounting → Financial Accounting Global Settings → Document →
Line Item → Controls → Define Field Status Variants
Trans Code SPRO
¾ Select VPEN
¾ Double click Field status groups
¾ Select ZALL, All Accounts
¾
¾ Position Cursor on General Data
¾ (Choose)
General Data Suppress Req. entry Opt. entry
Assignment number X
Text X
Invoice Reference X
Hedging X
Collective Invoice X
Reference specification 1/2 X
Reference specification 3 X
Inflation Index X
View fields statuses (Do not change – only review)
¾ (Exit)

Message
Exercise 40: Assign Company Code to Field Status Variant

Purpose of Exercise
The purpose of this exercise is to assign your company code to the field status variant you just created.
By doing this you will allow your company code to use the field status variant and the groups that you
created within the variant.
Navigation
Line Item → Controls → Assign Company Code to Field Status Variants
Trans Code SPRO

¾ Select your Company Code C_ _ _
¾ Fld stat. var. (Field Status Variant): VPEN
¾ (Save)
¾ (Exit)

Message
Unit 6: Create General Ledger Accounts

Purpose of Unit
The purpose of Unit 6 is to create the General Ledger Accounts necessary for the legal reporting
requirements associated with a Balance Sheet and an Income Statement. This includes:
• Balance Sheet accounts for assets, liabilities and retained earnings
• Income Statement for revenues and expenses
The General Ledger Accounts will be created using the Rules you created in Unit 5:
• BS = Balance Sheet Accounts (Assets and Liabilities)
• PL = Profit & Loss Accounts (Revenues and Expenses)
• RA = Reconciliation Accounts (Accounts Payable and Accounts Receivable)
Exercise 41: Create Bank Account

Purpose of Exercise
This exercise will create a general ledger account for your bank account. This is an asset balance
sheet account.
Navigation
Menu Path
Accounting → Financial Accounting → General Ledger → Master Records →
G/L Accounts → Individual Processing → Centrally
Trans Code FS00
¾ G/L Account: 100_ _ _

¾ Company Code: C_ _ _
¾ (Create)
Type/Description TAB
Control in chart of accounts
¾ Account Group Balance Sheet Accounts
¾ Select Radio Button Balance sheet account
Description
¾ Short text: Bank (Checking)
¾ G/L acct long text Bank (Checking Account)
Control Data TAB

Account control in company code
¾ Currency USD
¾ Select: “Only balances in local currency”
Account Management in Company Code

¾ Select: “Line item display”
¾ Sort key: 001
Create/bank/interest TAB
Control of document creation in company code
¾ Field status group: ZALL
¾ (Save)

Message
Exercise 42: Create Accounts Receivable Reconciliation Account

Purpose of Exercise
This exercise will create the Accounts Receivable Reconciliation account. This account is used to sum
up customer accounts. Multiple reconciliation accounts could be used you wanted to keep track of
different customer accounts. This type of account is normally used wherever there is a high volume of
transactions that can be summarized into a single account for reporting on the Balance Sheet. This is
an asset on the Balance Sheet.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 110_ _ _

¾ (Create)
¾ Account Group Reconciliation Accounts
Description
¾ Short text: AR Recon
¾ G/L acct long text Accounts Receivable Reconciliation
Control Data TAB

¾ Currency USD
¾ Recon. acct for acct type: CUSTOMERS
¾ (Save)

Message
Exercise 43: Create Trading Goods Inventory Account

Purpose of Exercise
This exercise will create a general ledger account for your trading goods inventory account. This is an
asset balance sheet account that records the value of the current inventory.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 201_ _ _

¾ (Create)
Description
¾ Short text: Inventory - Trading
¾ G/L acct long text Trading Goods Inventory
Control Data TAB

¾ Currency USD

¾ Sort key: 001
¾ Select “Post automatically only”
¾ (Save)

Message
Exercise 44: Create Operating Supplies Inventory Account

Purpose of Exercise
This exercise will create a general ledger account for your operating supplies inventory account. This
is an asset balance sheet account that records the value of the current inventory.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 203_ _ _

¾ (Create)
Description
¾ Short text: Operating Supplies
¾ G/L acct long text Operating Supplies Inventory
Control Data TAB

¾ Currency USD

¾ Sort key: 001
¾ (Save)

Message
Exercise 45: Create Accounts Payable Reconciliation Account

Purpose of Exercise
This exercise will create the Accounts Payable Reconciliation account. This account is used to sum up
vendor accounts. Multiple reconciliation accounts could be used you wanted to keep track of different
vendor accounts. This type of account is normally used wherever there is a high volume of
transactions that can be summarized into a single account for reporting on the Balance Sheet. This is
a liability on the Balance Sheet.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 300_ _ _

¾ (Create)
¾ Account Group Reconciliation Accounts
Description
¾ Short text: AP Recon
¾ G/L acct long text Accounts Payable Reconciliation
Control Data TAB

¾ Currency USD
¾ Recon. acct for acct type: VENDORS
¾ (Save)

Message
Exercise 46: Create Goods Receipt / Invoice Receipt Account

Purpose of Exercise
This exercise will create a general ledger account for your Goods Receipt / Invoice Receipt account.
This is a balance sheet account that records the value of a goods receipt from a vendor in the
purchasing process prior to matching it up with and invoice from the vendor.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 310_ _ _

¾ (Create)
Description
¾ Short text: GR/IR Account
¾ G/L acct long text Goods Receipt / Invoice Receipt Account
Control Data TAB

¾ Currency USD
¾ Check box Only balances in local currency
¾ Tax category * (All tax types allowed)
¾ Select Posting without tax allowed

¾ Select Open Item Management
¾ Check Line item display
¾ Sort key: 001
¾ Check “Post automatically only”
¾ (Save)

Message
Exercise 47: Create Output Tax Account

Purpose of Exercise
This exercise will create a general ledger account for your output tax account. This is an asset balance
sheet account that records the value tax that has been accrued in this account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 320_ _ _

¾ (Create)
Description
¾ Short text: Accrued Tax - Output
¾ G/L acct long text Accrued Tax - Output
Control Data TAB

¾ Currency USD
¾ (Save)

Message
Exercise 48: Create Input Tax Account

Purpose of Exercise
This exercise will create a general ledger account for your input tax account. This is an asset balance
sheet account that records the value tax that has been accrued in this account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 321_ _ _

¾ (Create)
Description
¾ Short text: Accrued Tax - Input
¾ G/L acct long text Accrued Tax - Input
Control Data TAB

¾ Currency USD
¾ (Save)

Message
Exercise 49: Create Retained Earnings Account

Purpose of Exercise
This exercise will extend this account as well as add additional information to the Retained Earnings
account created when you copied the CPEN accounts into your C_ _ _ Chart of Accounts.
A Retained Earnings account is a Balance Sheet account that records values to be carried forward
from one period to the next.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 330_ _ _

¾ (Create)
Description
¾ Short text: Retained Earnings
¾ G/L acct long text Retained Earnings
Control Data TAB

¾ Currency USD

¾ Sort key: 001
¾ (Save)

Message
Exercise 50: Create Common Stock Account

Purpose of Exercise
This exercise will create a general ledger account for your common stock account. This is an asset
balance sheet account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 350_ _ _

¾ (Create)
Description
¾ Short text: Common Stock
¾ G/L acct long text Common Stock _ _ _
Control Data TAB

¾ Currency USD

¾ Sort key: 001
¾ (Save)

Message
Exercise 51: Create Trading Goods Consumption Expense Account

Purpose of Exercise
The purpose of this exercise is to create a Trading Goods Consumption Expense account. This
Income Statement account will track the expenses that are posted to this account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 721_ _ _

¾ (Create)
¾ Account Group Profit & Loss Accounts
¾ Select Radio Button P&L statement acct
Description
¾ Short text: Trading Goods Exp.
¾ G/L acct long text Trading Goods Consumption/Expense
Control Data TAB

¾ Currency USD

¾ Select Line item display
¾ Sort Key 001
¾ (Save)

Message
Exercise 52: Create Operating Supplies Expense Account

Purpose of Exercise
The purpose of this exercise is to create an Operating Supplies Expense account. This Income
Statement account will track the expenses that are posted to this account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 740_ _ _

¾ (Create)
Description
¾ Short text: Supplies Expense
¾ G/L acct long text Supplies Expense
Control Data TAB

¾ Currency USD

¾ Sort Key 001
¾ (Save)

Message
Exercise 53: Create Utilities Expense Account

Purpose of Exercise
The purpose of this exercise is to create a Utilities Expense account. This Income Statement account
will track the expenses that are posted to this account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 750_ _ _

¾ (Create)
Description
¾ Short text: Utilities Expense
¾ G/L acct long text Utilities Expense Account
Control Data TAB

¾ Currency USD

¾ Sort Key 001
¾ (Save)

Message
Exercise 54: Create Purchase Price Difference Expense Account

Purpose of Exercise
The purpose of this exercise is to create a Purchase Price Difference Expense account. This Income
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 760_ _ _

¾ (Create)
Description
¾ Short text: Pur Price Dif Acct
¾ G/L acct long text Purchase Price Difference Account
Control Data TAB

¾ Currency USD

¾ Sort Key 001
¾ (Save)

Message
Exercise 55: Create Information Technology Expense Account

Purpose of Exercise
The purpose of this exercise is to create a Information Technology Expense account. This Income
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 770_ _ _

¾ (Create)
Description
¾ Short text: IT Expense
¾ G/L acct long text Information Technology Expense
Control Data TAB

¾ Currency USD

¾ Sort Key 001
¾ (Save)

Message
Exercise 56: Create Miscellaneous Expense Account

Purpose of Exercise
The purpose of this exercise is to create a Miscellaneous Expense account. This Income Statement
account will track the expenses that are posted to this account.
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 781_ _ _

¾ (Create)
Description
¾ Short text: Misc. Expense
¾ G/L acct long text Miscellaneous Expense
Control Data TAB

¾ Currency USD

¾ Sort Key 001
¾ (Save)

Message
Exercise 57: Create Cost of Goods Sold Expense Account

Purpose of Exercise
The purpose of this exercise is to create a Cost of Goods Sold Expense account. This Income
Navigation
Menu Path
Trans Code FS00
¾ G/L Account: 790_ _ _

¾ (Create)
Description
¾ Short text: Cost of Goods Sold
¾ G/L acct long text Cost of Goods Sold Expense
Control Data TAB

¾ Currency USD

¾ Sort Key 001
¾ (Save)
¾ (Exit)
Message
Exercise 58: Run General Ledger List of Accounts Report

Purpose of Exercise
This exercise will provide you with a report that summarizes all accounts assigned to your company
code. Use this accounts to verify that you have indeed created all the accounts you needed to create
for your company.
Navigation
Menu Path
Accounting → Financial Accounting → General Ledger → Information System →
General Ledger Reports → Master Data → Chart of Accounts →
SAP Minimal Variant
Trans Code
¾ (Execute)
¾ Review the list of accounts
Verify details of:

G/L Account Description – Short Text
100_ _ _ Bank (Checking Account)
110_ _ _ Account Receivable Reconciliation
201_ _ _ Trading Goods Inventory
203_ _ _ Operating Supplies Inventory
300_ _ _ Accounts Payable Reconciliation
310_ _ _ Goods Receipt / Invoice Receipt Account
320_ _ _ Accrued Tax – Output
321_ _ _ Accrued Tax – Input
330_ _ _ Retained Earnings
350_ _ _ Common Stock
721_ _ _ Trading Goods Consumption / Expense
740_ _ _ Supplies Expense
750_ _ _ Utilities Expense
760_ _ _ Purchase Price Difference Account
770_ _ _ Information Technology Expense
781_ _ _ Miscellaneous Expense
790_ _ _ Cost of Goods Sold Expense
¾ (Back)
¾ (Exit)
Message
Unit 7
Purpose of Unit
The purpose of Unit 7 is to create the Rules (internal controls) and Master Data necessary for Material
Management. This includes:
• Rules that control how master data is created and how master data responds when used in
transactions.
• Master Data
o Vendor Master Data – who you buy from
o Material Master Data – what you buy
Exercise 59: Vendor Account Groups

Purpose of Exercise
This exercise is to have you review the different account groups that you will use to create your
vendors. Account groups control the data required to create vendors just as the account groups you
created for general ledger accounts controlled the information required to create general ledger
accounts.
This is a review only exercise (Do not change or save).
Navigation
Financial Accounting → Accounts Receivable and Accounts Payable →
Vendor Accounts → Master Data →
Preparations for Creating Vendor Master Data →
Define Account Groups with Screen Layout (Vendors)
Trans Code SPRO
System Menu: Table View Æ Change-->Display
¾ Select KRED - Vendor (int.number assgnmnt)
¾ (Details)
¾ Select General Data
¾ Select
¾ Review the required fields by double clicking on the various groups
DO NOT CHANGE ANY FIELDS

¾ (Exit)

Message
Exercise 60: Create Vendor Master Accounting Record

Purpose of Exercise
This exercise has you create the general and financial views of a vendor master record. Business
transactions are posted to accounts and managed using those accounts. A master record must be
created for each account that you require. Vendor master records have three primary views:
• General Data
• Financial Accounting Data – often referred to as company code data and
• Purchasing Data
The master record can be created by financial accounting or purchasing. The record can be created
with only that department’s view along with the general view or it can be created centrally if all the
information is known.
Navigation
Menu Path
Accounting → Financial Accounting → Accounts Payable → Master Records →
Create
Trans Code FK01

¾ Vendor: Leave blank
¾ Company code C_ _ _
¾ Account group KRED
¾ (Enter)
Create Vendor: Address
Name
¾ Name: Promotions Ltd. _ _ _
Search Term
¾ Search term _ _ _(Your Student Number)
Address
¾ City Chico
¾ Country US
¾ Region CA
Communication
¾ Language English
¾ (Enter) Note: Page forward past views that do not contain relevant information…
¾ (Enter)
Create Vendor: Payment transaction N/A
¾ (Enter)
¾ Recon. Account: 300_ _ _
¾ (Enter)
Create Vendor: Payment transaction Accounting
¾ Payt term (Payment Terms): 0001
¾ (Enter)
¾ (Save)
¾ Record the vendor number _________________

Message
¾ (Exit)
Exercise 61: Create Vendor Master Purchasing Record

Purpose of Exercise
This exercise has you create the purchasing view for the vendor master you created in the previous
exercise. Since you have a vendor number, this will be needed to complete the creation of the
purchasing view.
Navigation
Menu Path
Purchasing → Create
Trans Code MK01
Create a purchasing view for your Promotions Ltd _ _ _ vendor.

¾ Vendor Internal # from previous exercise
¾ Purchasing Organization P_ _ _
¾ Account group KRED.
¾ (Enter)
Create Vendor: Purchasing Data
Conditions
¾ Order Currency USD
¾ Terms of payment 0001
¾ (Save)

Message
¾ (Exit)
Exercise 62: Create Vendor Master Record Centrally

Purpose of Exercise
This exercise has you create all three views of the vendor master (general, financial, and purchasing).
Navigation
Menu Path
Central → Create
Trans Code XK01
Create all views for a new vendor called Slick Pens _ _ _.

¾ Vendor Leave Blank (system will generate the number)
¾ (Enter)
Name
¾ Name Slick Pens _ _ _
Search Term
¾ Search term _ _ _(Your Student Number)
Address
¾ City Milwaukee
¾ Country US
¾ Region WI
Communication
¾ Language English
¾ Recon. Account = 300_ _ _
Create Vendor: Payment transactions Accounting
¾ Payment term = 0001
¾ Terms of payment = 0001
¾ (Save)

Message

Purpose of Exercise
Navigation
Menu Path
Central → Create
Trans Code XK01
Create all views for a new vendor called Premier Pens _ _ _.

¾ (Enter)
Name
¾ Name Premier Pens _ _ _
Search Term
¾ Search term _ _ _ (Your Student Number)
Address
¾ City Baton Rouge
¾ Country US
¾ Region LA
Communication
¾ Language English
¾ (Save)

Message

Purpose of Exercise
Navigation
Menu Path
Central → Create
Trans Code XK01
Create all views for a new vendor called Supply Box _ _ _.

¾ (Enter)
Name
¾ Name Boxes Inc _ _ _
Search Term
¾ Search term _ _ _ (Your Student Number)
Address
¾ City Sioux Falls
¾ Country US
¾ Region SD
Communication
¾ Language English
¾ (Save)

Message
Exercise 65: Initialize the Fiscal Period for Company Code

Purpose of Exercise
The purpose of this exercise is to initialize the fiscal period for your company code. This allows for the
movement of materials and will facilitate your ability to conduct transactions. Great care needs to be
utilized when carrying out this exercise.
Note: If you create an initial posting period in the future, no transactions will be possible until that
period. You will then need to start over at the beginning of the exercises.
Navigation
Logistics – General → Material Master → Basic Settings →
Maintain Company Codes for Materials Management
Trans Code SPRO
Enter the following information for your Company Code:

¾ Year Current Year (e.g, 2007)
¾ Pe (Period) Enter the current period (1=January; 2=February, etc.)
¾ Select ABp (allow posting to previous period)
¾ (Save)
¾ (Exit)

Message
Exercise 66: Maintain Plant Parameters for Materials Management

Purpose of Exercise
In this exercise you will specify the plant parameters you will need for material requirements planning.
Navigation
Materials Management → Consumption-Based Planning → Plant Parameters →
Carry Out Overall Maintenance of Plant Parameters
Trans Code SPRO
Enter the following information
¾ Select
¾ Plant P_ _ _
¾ Select
¾ Select
¾ Select
¾ Plant P_ _ _
¾ Select
Environment
¾ Select
Number Ranges
¾ Select
¾ Assign no. range 01 to your plant (Save) (Back)
¾ Select
¾ Select
¾ Select
¾ Select
¾ Assign no. range 01 to your plant (Save) (Back twice)

Master data
¾ Select
¾ Select
¾ Plant: P_ _ _
¾ MRP controller _ _ _ and description (Your name)
¾ (Save) (Back three times)
¾ Select
¾ Select
¾ Plant P_ _ _
¾ Marg. _ _ _ ( Your Student Number)
¾ Op.Per. 1 (Workdays prior to order start)
¾ Fl Bef 1 (Workdays between order start and scheduled start)
¾ Fl After 1 (Workdays between order due date and scheduled
finish date)
¾ Rel. Per: 1 (Workdays in release period)
¾ (Save) (Back twice)

Planned Orders
¾ Select
¾ Number of planned orders 1
¾ (Save) (Back)
¾ Select
¾ Select your plant
¾ Avail. Check Rule PP
¾ (Save) (Back)
Reporting
¾ Select
¾ Select Display list
¾ Frequency 1
¾ (Save) (Back)
Planning Run
¾ Select
Plant parameters
¾ Select Scheduling: Info Rec/Agreemt
¾ Schedule lines . 3 (Schedule Lines)
¾ Unknown Acct Assignment U (Unknown)
¾ (Save) (Back two times)
¾ Select
¾ Planning horizon 15
¾ (Save) (Back three times)
Exercise 67: Activate Material Requirements Planning

Purpose of Exercise
This exercise activates Material Requirements Planning for your plant.
Navigation
Materials Management → Consumption-Based Planning → Planning →
Activate Material Requirements Planning
Trans Code SPRO
¾ Select
¾ Select Activate requirements planning for your plant
¾ (Save) (Back twice)

Message
Exercise 68: Define Attributes for Material Types

Purpose of Exercise
The purpose of this exercise is to define the attributes for the material types. The attributes for a
material type determine the functions allowed for materials of that category (HAWA, HIBE, etc.). Each
material type has specific functions and views required to maintain the data.
Since this is client level configuration is shared by everyone, therefore in this exercise you will only
have to review the settings established by the Instructor.
Navigation
Logistics – General → Material Master → Basic Settings → Material Types →
Define Attributes of Material Types
Trans Code SPRO
¾ Select HAWA (Training Goods)

¾ Double Click Quantity/value updating
¾ Qty updating Select

¾ Value update Select
¾ (Save)
¾ (Back
Complete the same set of operations for HIBE (Operating Supplies) after you are done with HAWA.
¾ (Exit)

Message
Exercise 69: Create Material Master for Trading Goods

Purpose of Exercise
This exercise will have you create the trading good materials that will be necessary for your company.
The Material Master has several views as you saw in the previous exercise when looking at the
material type attributes. The views required are dependent on the type of material and the functionality
required by the company.
This exercise will also introduce you to the use of defaults in the creation of material master data.
Navigation
Menu Path
Create (Special) → Trading Goods
Trans Code MMH1
First set the defaults (you may need to select the industry sector prior to setting the defaults)
¾ Select industry sector Retail
System Menu: Defaults→ Industry Sector Retail
¾ (Enter)
System Menu: Defaults→ Views

¾ Select the following views: Basic data 1
Purchasing
MRP 1
MRP 2
MRP 3
General Plant Data/Storage 1
Accounting 1
(Deselect the Sales Views if selected)
¾ Select Create views selected
¾ (Enter)
System Menu: Default→ Organization levels… Copy from…

Company code: C_ _ _ C_ _ _
Plant: P_ _ _ P_ _ _
¾ Leave storage location blank (storage locations will be created automatically)
¾ (Enter)
Enter the following information to create the materials:
¾ Material BPEN_ _ _
¾ (You may need to press enter once or twice to pass the views and organization level selections
if you did not indicate that you only wanted to view these on request)
Use the information following table for the inputs into the material master. Repeat the process for each
of the materials.
Use your student number for all entries where _ _ _ is indicated.
Use the following information to create the materials

Material Name BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ Box_ _ _
Basic data 1 View
Description Barrel Pen Click Pen Premium Pen Pen Box
Base Unit of Measure Each (EA) Each (EA) Each (EA) Each (EA)
Material Group 01 01 01 01
Gross & Net Weight / Unit 1 Oz 1 Oz 2 Oz 1 Oz
Purchasing View
Purchasing Group ___ ___ ___ ___
MRP 1 View
MRP Type PD PD PD PD
MRP Controller ___ ___ ___ ___
Lot size EX EX EX EX
Minimum Lot Size 12 12 144
MRP 2 View
Planned Deliv. Time 3 3 6 3
SchedMargin key ___ ___ ___ ___
Safety Stock 500 150 20 500
MRP 3 View
Availability check 02 02 02 02
Accounting 1 View
Value Class 3100 3100 3100 3100
Moving price $ 0.65 $ 1.50 $ 3.00 $ 0.20
Price Unit 1 1 1 1
¾ (Save after each material)
Record the system messages:

Message
Exercise 70: (Optional) Create Material Master for Operating Supplies

Purpose of Exercise
This exercise will have you create the operating supplies that will be necessary for your company. The
Material Master has several views as you saw in the previous exercise when looking at the material
type attributes. The views required are dependent on the type of material and the functionality required
by the company.
Use the same default information for this exercise that you used when creating the trading good
material master data.
Navigation
Menu Path
Create (Special) → Operating Supplies
Trans Code MMI1
¾ Enter material: TAPE_ _ _
¾ (Enter)
Use the following information to create the materials
Material Tape_ _ _ Tissue _ _ _ Paper_ _ _ Forms_ _ _

Basic data 1 View
Description Tape Tissue Paper Forms
Base Unit of Measure Each (EA) Carton (CAR) Each (EA) Carton (CAR)
Material Group 01 01 01 01
Gross & Net Weight / Unit 8 Oz 1 lb 1 lb 30 lb
Purchasing
Order Unit DZ CV
Conversion factor for U of M 1 = 12 1 = 10
Purchasing Group ___ ___ ___ ___
MRP 1 View
MRP Type PD PD PD VB
Reorder Point 1
MRP Controller ___ ___ ___ ___
Lot size FX EX FX EX
Minimum Lot Size 1 1
Fixed lot size 12 10
Continue on next page…
MRP 2 View
Planned Deliv. Time 1 1 2 5
SchedMargin key ___ ___ ___ ___
Safety Stock 10 10 2 1
MRP 3 View
Availability check 02 02 02 02
Accounting 1 View
Value Class 3030 3030 3030 3030
Moving price $ 9.60 $ 2.50 $ 35.50 $ 52.50
Price Unit 12 1 10 1

Message
Unit 8:
Purpose of Unit
The purpose of Unit 8 is to establish some of the rules that will control the financial accounting (FI)
transactions. In addition to the rules document number ranges will be established and a payment
program will be established.
Once these rules and other parameters are established you will test your system in the next unit.
Exercise 71: Define Posting Periods Variant

Purpose of Exercise
This exercise will define the variant to which the posting period will be assigned. Financial accounting
(FI) posting periods will be opened to allow transactions to be tracked by period. This variant will then
be assigned to your company code.
Navigation
Posting Periods → Define Variants for Open Posting Periods
Trans Code SPRO
¾ Click on
¾ Variant V_ _ _
¾ Name Posting Period Variant _ _ _
¾ (Save)
¾ (Back twice)

Message
Exercise 72: Open and Close Posting Periods

Purpose of Exercise
The purpose of this exercise is to establish when the posting periods will be effective. In addition to
establishing the open posting periods for financial accounting, you will also define the additional special
closing periods. This will be in accord with the fiscal year variant (K1 – calendar year with 1 special
closing period) you set up earlier.
Navigation
Posting Periods → Open and Close Posting Periods
Trans Code SPRO
¾ Click on
¾ Var. V_ _ _
¾ A + (Valid for all accounts)
Leave account columns blank
Open periods 1 to 12 plus one extra period for current fiscal year by typing the following:
¾ From per 1 1
¾ Year 2007
¾ To period 12
¾ Year 2010
¾ From per 2 13
¾ Year 2007
¾ To period 13
¾ Year 2010
¾ (Save)
¾ (Back twice)

Message
Exercise 73: Assign Posting Period Variant to Company Code

Purpose of Exercise
This exercise will have you assign the posting period variant to your company code.
Navigation
Posting Periods → Assign Variants to Company Code
Trans Code SPRO

¾ Find your Company Code C_ _ _
¾ Variant V_ _ _
¾ (Save)
¾ (Back)

Message
Exercise 74: Create Tolerance Groups for Account Postings

Purpose of Exercise
The purpose of this exercise is to set up the tolerances you will use for the entry of financial accounting
(FI) documents. A blank group is a valid tolerance group. By creating a blank group code the system
will apply these rules as defaults unless a specific group is entered resulting in any person not
assigned to another group by default will be assigned to this group
Navigation
Line Item → Define Tolerance Groups for Employees
Trans Code SPRO

¾ Group Leave blank
Upper limits for posting procedures
¾ Amount per document 1,000,000
¾ Amount per open item account item 100,000
¾ Cash discount per line item 5%
Permitted payment differences
¾ Revenue 100 10% 10
¾ Expense 100 10% 10
¾ (Enter)
¾ (Save)
¾ (Back twice)

Message
Exercise 75: Setup Payment Program

Purpose of Exercise
The payment program allows the company to have flexibility in paying bills.
Example 1
Company code 0001 pays its own items and the items of company codes 0002 and 0003. All items are
grouped into one payment.
Company code Paying company code Sending company code

0001 0001 0001
0002 0001 0001
0003 0001 0001
Example 2
Company code 0001 pays its own items and the items of company codes 0002 and 0003. However, a
separate payment is created for each company code.
Company code Paying company code Sending company code

0001 0001 0001
0002 0001 0002
0003 0001 0003
Navigation
Business Transactions → Outgoing Payments →
Automatic Outgoing Payments →
Payment Method/Bank Selection for Payment Program →
Setup All Company Codes for Payment Transactions
Trans Code SPRO

¾ (Enter)
¾ Sending company code C_ _ _ (your company code)
¾ Paying company code C_ _ _ (your company code)
¾ (Save)
¾ (Back twice)

Message
Exercise 76: Create Tolerance Groups for Accounts Receivable and

Accounts Payable
Purpose of Exercise
This exercise will create tolerance groups that contain rules that affect cash discount and payment
difference processing. These rules become effective during payment entry.
As with earlier tolerances, a blank group field means that these rules will apply to all persons not
assigned to a specific group.
Navigation
Business Transactions → Outgoing Payments → Manual Outgoing Payments →
Define Tolerances (Vendors)
Trans Code SPRO

¾ Tolerance group Leave blank
¾ Tolerance group description DEFAULT _ _ _
Permitted Payment Differences
¾ Gain
o Amount 10
o Percent 1
¾ Loss
o Amount 1
o Percent 1
Specifications for Posting Residual Items from Payment Differences

¾ Select Payment Term from Invoice
¾ Select Only grant partial cash disc
¾ (Enter)
¾ (Save)
¾ (Back twice)

Message
Exercise 77: Create Financial Accounting (FI) Document Numbers

Purpose of Exercise
The purpose of this exercise is to have you establish which number ranges are assigned to the
company code. Each document in the system is unique based on the following:
• Company Code
• Fiscal Year
• Document Number
Navigation
Document Number Ranges → Copy to Company Code
Trans Code SPRO

Source Company Code Details
¾ Company code US01
Target Company Code Details
¾ (Execute)
¾ to accept the message.

¾ Review the information
¾ (Back twice)

Message
Unit 9:
Purpose of Unit
The purpose of Unit 9 is to post your initial cash investment and conduct and initial test on the system
by posting the purchase of some supplies.
Exercise 78: Review Document Types

Purpose of Exercise
The purpose of this exercise is to review the different type of documents you will be using. A document
type is used to; distinguish between different types of business transactions, the document type
controls which account type that you are allowed to post (G/L account, customer, vendor, fixed
assets….), and a document type is assigned to a specific document number range. Below are listed a
few of the document types that we will be using throughout this course.
Navigation
Document Header → Define Document Types
Trans Code SPRO
¾ (Change -> Display)
Make sure the title of the screen is: Display View “Document Types”; Overview
¾ Select the following document types and record the Document Number Ranges
Review the details of:

Document type Document Document Number Range
DR Customer invoice
DZ Customer payment
KR Vendor invoice
KZ Vendor payment
RE Invoice – Gross
SA G/L account document
WA Goods issue
WE Goods receipt
¾ (Details) list the Documents Number Range in the table above.
¾ (Back twice)
Message
Exercise 79: Post Initial Cash Investment by Owners

Purpose of Exercise
The purpose of this exercise is to test your initial FI setup. The business scenario is that you ingest
$750,000 to start up your business. You need to account for this transaction in your Financial
Accounting System.
Navigation
Menu Path
Accounting → Financial Accounting → General Ledger → Posting→
Enter G/L Account Document
Trans Code FB50

Basic data Tab
¾ Document Date Today’s date
¾ Currency USD
¾ Company Code (Your code should default)
On the first line Enter:
¾ G/L acct 100_ _ _ (Bank - Checking)
¾ D/C Debit
¾ Amount in doc.curr. $ 750,000
On the second line Enter:
¾ G/L acct 350_ _ _ (Common Stock)
¾ D/C Credit
¾ (Enter)
¾ (Post)

Message
Exercise 80: Post Purchase of Operating Supplies

Purpose of Exercise
The purpose of this exercise is to test your initial FI setup. The business scenario is that you need
some office supplies immediately. You drive down to Office Supply Depot and buy $75 of supplies
(paper, folders, etc) and pay for the purchase with a company check.
Navigation
Menu Path
Accounting → Financial Accounting → General Ledger → Posting→
Enter G/L Account Document
Trans Code

Basic data Tab
¾ Currency USD
¾ Company Code (Your code should default)
On the first line Enter:
¾ G/L acct 740_ _ _ (Supplies Expense Account)
¾ D/C Debit
¾ Amount in doc.curr. $ 75
On the second line Enter:
¾ G/L acct 100_ _ _ (Bank - Checking)
¾ D/C Credit
¾ Amount in doc.curr. $ 75
¾ (Enter)
¾ (Post)

Message
¾ (Exit)
¾ (To return to the Easy Access Menu)
Exercise 81: Display and Review General Ledger Account Balances

Purpose of Exercise
The purpose of this exercise is to Display the General Ledger Account balance and line item.
Navigation
Menu Path
Accounting → Financial Accounting → General Ledger → Account →
Display Balances
Trans Code

¾ G/L Account 100_ _ _
¾ Fiscal year 2007
¾ (Execute)
¾ Record the entry below
¾ (Back)
¾ (Execute)
¾ (Back)
¾ (Execute)
Record the balances for the current period

Account Period Debit Credit Balance Cumulative
Balance
100_ _ _
350_ _ _
740_ _ _
¾ (Back)
Business Case Scenario

Purpose of Exercise
Pen Inc. has rented more warehouse space and is about to receive the invoice for the first month’s
lease. In order to do this, you must create a new vendor and add an expense account for rent.
Unit 10:
Purpose of Unit
The purpose of Unit 10 is to test your systems ability to receive invoices from vendors and post
payment to the vendors account.
Exercise 82: Create Vendor Master Record for Landlord

Purpose of Exercise
The purpose of this exercise is to create a new vendor. The Chief Financial Officer has requested you
create a new vendor account for Tanager Leasing – the firm from which you are renting your new office
and warehouse space.
Navigation
Menu Path
Accounting → Financial Accounting → Accounts Payable → Master Records →
Create
Trans Code FK01

¾ Vendor Leave blank
¾ Account group KRED
Reference
¾ Reference (one of your other vendors)
¾ (Enter)
Name
¾ Name Tanager Leasing _ _ _
Search Term
¾ Search term ___
Street Address
¾ City Vermillion
¾ Country US
¾ Region SD
¾ Language EN
¾ (Enter three times)
Create Vendor: Accounting information Accounting

¾ Recon. account 300_ _ _
¾ (Enter)
Payment data
¾ Payt Terms 0001
¾ Select Chk double inv.
¾ (Save)
¾ (Back)
Message
Exercise 83: Create Rent Expense Account

Purpose of Exercise
This exercise has you create and new expense account for rent in your chart of accounts using a
previous account as a template for the new account.
Navigation
Menu Path
Trans Code FS00

¾ Click on
¾ (Continue)
Description
¾ Short Text Rent Expense
¾ G/L Acct Long Text Rent Expense
¾ (Save)
¾ (Back)

Message
Exercise 84: Create Invoice Receipt for Rent Expense

Purpose of Exercise
The purpose of this exercise is to log the invoice that Tanager Leasing, Inc. has sent for the first
month’s rent of $1,500.00 total. Please post the invoice using the accounts you have created in your
Company code.
INVOICE # 123 Tanager Leasing, Inc.
CURRENT Month Rent
Total $1,500.00
Navigation
Menu Path
Invoice
Trans Code FB60
If your Company Code did not default in:

System Menu: Edit → Change Company Code and enter yours.
Basic data Tab

¾ Vendor (# for Tanager Leasing _ _ _)
¾ Invoice date Today
¾ Amount $ 1,500
¾ G/L acct 780_ _ _ (Rent Expense)

¾ D/C Debit
¾ (Enter)

Verify details of:
Account Description Amount Comments
100_ _ _ Tanager Leasing 1500-
780_ _ _ Rent Expense 1500
¾ (Post)
Message
¾ (Exit)
Exercise 85: Display and Review General Ledger Account Balances

Purpose of Exercise
The purpose of this exercise is to display the Rent Expense account balance and line item.
Menu Path
Display Balances
Trans Code

¾ G/L account 780_ _ _
¾ Fiscal year 2007
¾ (Execute)
¾ Record the information in the ledger below.
¾ Double click on period balance to see individual line items.
Record the balance of the Rent Expense Account for the current and previous period
Period Debit Credit Balance Cumulative
Balance
¾ (Exit Twice)
Exercise 86: Display and Review Vendor Account Balances and

Individual Line Items
Purpose of Exercise
The purpose of this exercise is to display the Vendor account balance and line item.
Navigation
Menu Path
Accounting→ Financial accounting→ Accounts Payable→ Account→
Display Balances
Trans Code

¾ Vendor Vendor # for Tanager Leasing
¾ Fiscal year 2007
¾ (Execute)
¾ Record the information in the ledger below.
¾ Double click on period balance to see individual line items.
Record the balance of the Vendor Account for the current and previous period
Period Debit Credit Balance Cumulative Sales/
Balance Purchases
¾ (Exit Twice)
Exercise 87: Post Payment to Landlord

Purpose of Exercise
This exercise will have you pay the invoice from Tanager Leasing which is due for payment now. You
are requested to clear the invoice amount by posting an outgoing payment using the bank account of
your chart of accounts.
Navigation
Menu Path
Outgoing Payment → Post
Trans Code F-53

Bank data
¾ Account 100_ _ _ (Bank - Checking)
¾ Amount 1500
¾ Text Invoice # 123
Open items selection
¾ Account (Vendor # for Tanager Leasing _ _ _)
¾ Select
¾ Review the line item information.
¾ Double click on the line item you want to post payment against. When assignment has been made
correctly the ‘Not assigned’ value on the bottom should equal $0.00
¾ (Post)

Message
¾ (Exit)
Exercise 88: Display and Review General Ledger and Vendor Account
Purpose of Exercise
To Display the Vendor account balance and line item
Navigation
Menu Path
Display Balances
Trans Code
¾ G/L account 780_ _ _
¾ Fiscal year 2007
¾ (Execute)
¾ Double click on period balance to see line items.
Record details of payment to landlord:
Type Doc. Date Amount in local cur. Document No
Navigation
Menu Path
Accounting → Financial Accounting → Accounts Payable → Account →
Display/Change Line Items
Trans Code

Vendor selection
¾ Vendor account (Vendor # for Tanager Leasing _ _ _)
Line item selection
¾ Select All items
¾ (Execute)
¾ Double click on individual document to see additional information.
Verify details of:
Status Document No Type Amount in doc. curr.
¾ (Exit Twice)
Unit 11:
Purpose of Unit
The purpose of Unit 11 is to establish some of the rules that will control the material management (MM)
transactions. Included in these rules is the configuration of automatic account assignment.
Once these rules and other parameters are established you will test your system in the next unit.
Exercise 89: Set Default Values for Inventory Management

Reservations
Purpose of Exercise
This exercise will enable the system to automatically create a storage location upon goods receipt.
The movement allowed indicator must be turned on to allow goods movements for reservations. The
Days movement allowed limits the goods movements to a specific number of days prior to the
reservation date. The Retention period is the number of days after the reservation date the system will
hold the reservation before setting the deletion indicator.
Navigation
Materials Management → Inventory Management and Physical Inventory →
Plant Parameters
Trans Code

¾ Plant P_ _ _
Goods movements
¾ Select Create SLoc.automat.
¾ Select Del. compl. default
Reservations
¾ Select Movement Allowed
¾ Days mvt. allowed 15 days
¾ Retention period 15 days
¾ (Save)

Message
¾ (Exit)
Exercise 90: Maintain Purchasing Tolerance Limits

Purpose of Exercise
The purpose of this exercise is for you to decide how much variation from the data in the purchase
order will be allowed.
Navigation
Materials Management → Purchasing → Purchase Order →
Set Tolerance Limits for Price Variance
Trans Code

¾ Tolerance key PE (Price variance: purchasing)
¾ (Enter)
¾ Select “Do not check” for all limits.
¾ (Next Entry)
¾ Tolerance key SE (Max. cash disc. deduction purchasing)

¾ (Enter)
¾ (Save)

Message
¾ (Exit)
Exercise 91: Maintain Goods Receipt Tolerance Limits

Purpose of Exercise
The purpose of this exercise is for you to decide how much variation from the data in the
purchase/production order will be allowed.
Navigation
Materials Management → Inventory Management and Physical Inventory →
Goods Receipt → Set Tolerance Limits
Trans Code

¾ Tolerance key B1 (Order price qty variance (GR)/E-MSG)
¾ Enter your company code: C_ _ _
¾ (Enter)
¾ (Next Entry)
¾ Tolerance key B2 (Order price qty variance (GR)/W-MSG)
¾ (Enter)
Lower limit
Percentage
¾ Select Check limit
¾ Tolerance limit 10 %
Upper limit
Percentage
¾ Select Check limit
¾ Tolerance limit 0%
¾ (Next Entry)
¾ Tolerance key VP Moving average price variance
¾ (Enter)
¾ (Save)

Message
¾ (Exit)
Exercise 92: Maintain Invoice Receipt Tolerance Limits

Purpose of Exercise
The purpose of this exercise is for you to decide how much variation from the data in the purchase
order will be allowed.
Navigation
Materials Management → Logistics Invoice Verification → Invoice Block →
Set Tolerance Limits
Trans Code

¾ Tolerance key Reference table below
¾ (Enter)
¾ (Save)
¾ Use the (Next Entry) button to move to the next blank screen
Repeat for each tolerance keys in the table below:
Description Tolerance Key

Amount for item without order reference AN
Amount for item with order reference AP
Form small differences automatically BD
Percentage OPUn Variance (IR before GR) BR
Percentage OPUn Variance (GR before IR) BW
Exceed amount: quantity variance DQ
Var. from condition value KW
Price variance PP
Price variance: estimated price PS
Date variance (value x days) ST

Message
¾ (Exit)
Exercise 93: Set (review) Valuation Control

Purpose of Exercise
This exercise will have you activate the valuation grouping code, you can group together valuation
areas allowing multiple plants to share the same rules. This makes the configuration of automatic
postings much easier.
Navigation
Materials Management → Valuation and Account Assignment →
Account Determination → Account Determination Without Wizard→
Define Valuation Control
Trans Code
¾ The valuation grouping code default is set as active
¾ Verify that the valuation grouping code is active.
¾ (Back)
¾ (Exit)
Exercise 94: Assign Valuation Area Grouping

Purpose of Exercise
This exercise has you group together valuation areas and use the same rules for account
determination. Within the chart of accounts, you assign the valuation grouping code to the valuation
areas you want to assign to the same account.
Navigation
Account Determination → Account Determination Without Wizard →
Group Together Valuation Areas
Trans Code

¾ Assign valuation grouping code to your valuation area
¾ Val. Grpg Code G_ _ _
¾ (Save)

Message
¾ (Exit)
Exercise 95: Define (review) Valuation Classes

Purpose of Exercise
The purpose of this exercise is to review which valuation classes are assigned to each material type
and account category reference.
Navigation
Define Valuation Classes
Trans Code
¾ Note the account category reference assigned to each of the material types used in this case study.
Verify details of:

Material Material Type Account Category Description
Type Description Reference
HAWA Trading Goods 0005 Reference for trading goods
HIBE Operating supplies 0002 Ref. for operating supplies
¾ (Exit)

Verify details of:
Valuation Account Category Description Description
Class Reference
3100 0005 Trading Goods Reference for trading goods
3030 0002 Operating supplies Ref. for operating supplies
¾ Note of which valuation classes are linked to the account category references you noted from
above.
¾ Why do Operating Supplies have more than one valuation class?
¾ (Exit Twice)
Exercise 96: Configure Automatic Postings for Goods Movement

Purpose of Exercise
This exercise will have you establish the system settings controlling automatic postings to G/L accounts
for Inventory Management and Invoice Verification transactions.
Navigation
Configure Automatic Postings
Trans Code
The next few pages will have you create the automatic postings rules for the following transactions:
Transaction Description Key

Inventory Posting BSX
Materials Management Small Differences DIF
Offsetting Entry for Inventory Postings GBB
Cost (price) Difference PRD
GR/IR clearing account WRX
Click on the button.
Inventory Posting
¾ Double click on Transaction Event Key BSX

¾ Chart of Accounts C_ _ _
¾ (Enter)
¾ Select Valuation modif.
¾ Select Valuation class
¾ (Save)
Transaction Event Key BSX
Enter the following automatic account assignments (use F4 to lookup the account number):
Valuation +- Valuation Class Enter Account
Modifier Account Name
Number
G_ _ _ 3100 Trading Goods Inventory Account
G_ _ _ 3030 Operating Supplies Inventory
¾ (Save)
¾ (Back)
Offsetting Entry for Inventory Posting
¾ Double click on Transaction Event Key GBB
Note: See the spreadsheet on the next page for additional information on Account Modifiers.
¾ Select General modification
¾ (Save)
Transaction Event Key GBB
Valuation General Valuation Enter Account
Modifier Modification Class Account Name
Number
G_ _ _ (Blank) 3030 Supplies Expense Account
G_ _ _ (Blank) 3100 Trading Goods Expense Account
G_ _ _ VAX 3100 Cost of Goods Sold Account
G_ _ _ VBR 3030 Supplies Expense Account
G_ _ _ VBR 3100 Trading Goods Expense Acct
¾ (Save)
¾ (Back)
Cost (price) difference
¾ Double click on Transaction Event Key PRD

¾ (Save)
Transaction Event Key PRD

Valuation Valuation Class Enter Account
Number
G_ _ _ 3030 Pur Price Dif Acct
G_ _ _ 3100 Pur Price Dif Acct
¾ (Save)
¾ (Back)
Materials Management Small Differences
¾ Double click on Transaction Event Key DIF
¾ (Save)
Enter the following automatic account assignments (F4 to lookup the account number):
Enter Account
Account Name
Number
Pur Price Dif Account
¾ (Save)
¾ (Back)
Goods receipt / inv. receipt clearing acct
¾ Double click on Transaction Event Key WRX

¾ (Save)
Transaction Event Key WRX

Valuation Valuation Class Enter Account
Number
G_ _ _ 3030 GR/IR Account
G_ _ _ 3100 GR/IR Account
¾ (Save)
¾ (Exit back to the IMG Menu)
Transaction Event Key: GBB – Inventory Posting Offsetting Entries

General Description of Usage of Account Material Movement Type
Account Modifier Key
Modifier
Goods Receipt From Purchase Order with 101>102 GR from Purchase Order>Reverse
Account Assignment – post to consumption
(exp.>rev.) – i.e., non-inventory purchases
AUF Goods Receipt From Production Order – 101>102 GR from Production Order>Reverse
post to production settlement 122 RE return to order
BSA Goods Receipt Into Initial Stock – only used 561>562 GR to Initial Stock
once for posting inventory off-set for initial Unrestricted>Reverse
stock data load 563>564 GR to Initial Stock Quality
Insp>Reverse
565>566 GR to Initial Stock Blocked>Reverse
INV MM Physical Inventory Posting – MM goods 701>702 GR to Physical In. Unrestricted>GI
receipt for increase count in stock, goods from
issue for decrease count in stock 703>704 GR to Physical In. Quality I>GI from
707>708 GR to Physical In. Blocked>GI from
WMS Physical Inventory Posting – WMS 711>712 GI to Inventory diff.>GR from diff.
goods issue to difference (i.e., loss) for 713>714 GI to Inventory diff. QI>GR from diff.
decrease count in stock, goods receipt from 717>718 GI to Inventory diff. Blocked>GR from
difference for increase count in stock
VAX Goods Issue To Sales - post to Cost of 231>232 GI to Sales Order (MM)>Reverse MM
Goods Sold (COGS) 531> GD, goods issue to delivery
623>624 GI cust. Returnable
packaging>Reverse
633>634 GI customer consignment>Reverse
VAY Goods Issue To Sales for Consumption 531> GD, goods issue to delivery
(e.g., goods issue to free sales samples) 623>624 GI cust. Returnable
packaging>Reverse
633>634 GI customer consignment>Reverse
641>642 TR to Stock in Transit Order>Reverse
VBO Goods Issue To Subcontracting Stock 543>544 GI to Subcontracting Stock>Reverse
VBR Goods Issue to Consumption - post to 201>202 GI to Cost Center>Reverse
material consumption (i.e., 221>222 GI to Project>Reverse
expense>revenue) 251>252 GI to Sales>Reverse
(e.g., goods issue to job or production 261>262 GI to Order>Reverse
order) 291>292 GI to All Acct. Assignments>Reverse
401>402 TP Own from Sales Order>Reverse
VNG Goods Issue to Scrap – post to scrapping 551>552 GI to Scrap Unrestricted>Reverse
material consumption (i.e., 553>554 GI to Scrap Quality Insp.>Reverse
expense>revenue) 555>556 GI to Scrap Blocked Stock>Reverse
VQP Goods Issue to Sampling – post to sampling 331>332 GI to Sampling Quality Insp.>Reverse
material consumption (i.e., 333>334 GI to Sampling Unrestricted>Reverse
expense>revenue)
ZOB Transfer Returns – Own (unrestricted) – 453>454 TP Returns to Own>Reverse
post valuated returned stock from customer
Goods Receipt w>o Purchase Order – post 501>502 GR w>o P.O. to Unrestricted>Reverse
expense>revenue account as offset to
inventory received without purchase order
Exercise 97: Configure Automatic Postings for Taxes

Purpose of Exercise
This exercise will have you establish the system settings controlling automatic postings to G/L accounts
for taxes.
Navigation
Financial Accounting → Financial Accounting Global Settings →
Tax on Sales/Purchases → Posting → Define Tax Accounts
Trans Code

¾ Select Sales Tax 1 MW1
¾ (Choose)
¾ (Save)
¾ Account 320_ _ _
¾ (Save)
¾ (Back)
¾ Select Sales Tax 1 VS1
¾ (Choose)
¾ (Save)
¾ Account 321_ _ _
¾ (Save)

Message
Exercise 98: Set Parameters for Invoice Verification

Purpose of Exercise
The objective of this exercise is to link the company code to the valuation elements within materials
management. The Price Carry Over indicates whether price changes in the previous period or
previous year are to affect the prices in the current period.
If you do not select this field, the price changes in the previous period or previous year have no effect
on the prices in the current period.
Navigation
Configure Price Change in Previous Period
Trans Code

¾ CoCd (Company Code) C_ _ _
¾ Check Price carr. over
¾ (Save)

Message
Exercise 99: Create Default Values for Invoice Verification

Purpose of Exercise
The purpose of this exercise is for you to maintain the default values for the tax codes used in invoice
verification.
Navigation
Materials Management → Logistics Invoice Verification → Incoming Invoice →
Maintain Default Values for Tax Codes
Trans Code

Defaults, domestic:
¾ Tax Code XI
¾ (Save)

Message
Unit 12:
Purpose of Unit
The purpose of Unit 12 is to test the integration of your Material Management and Financial Accounting
systems. With both configured, it is time to create purchase orders for trading goods and operating
supplies, receive the invoices and post payment to the vendors for goods provided to your company.
Exercise 100: Create Purchase Order for Slick Pens

Purpose of Exercise
The purpose of this exercise is to create a Purchase Order from a know supplier (Slick Pens). This is
the first order and you need to evaluate their pens and timeliness of delivery.
Navigation
Menu Path
Logistics → Materials Management → Purchasing → Purchase Order →
Create → Vendor/Supplying Plant Known
Trans Code ME21N

¾ Vendor (# for SLICK PENS)
Verify details of:
Material Quantity Delivery Date Net Price Currency
BPEN_ _ _ 500 (Future date) .65 USD
CPEN _ _ _ 250 (Future date) 1.50 USD
BOX _ _ _ 1000 (Future date) 0.29 USD
¾ (Header)
Conditions Tab
¾ Record the total value of the Purchase order $__________(990)
¾ (Save)
¾
¾ Save past the message indicating that no output device (ie. Printer, FAX) was found to communicate
this PO to the vendor.
¾ Record Purchase Order Number _________________________

Message
Exercise 101: Create Purchase Order for Premier Pens

Purpose of Exercise
This exercise will have you create a Purchase Order from a know supplier (Premier Pens). This is the
first order and you need to evaluate their pens and timeliness of delivery.
Navigation
Menu Path
Trans Code ME21N

¾ Vendor (# for PREMIER PENS)
Verify details of:
CPEN_ _ _ 250 (Future date) 1.60 USD
PPEN _ _ _ 10 (Future date) 3.00 USD
¾ (Header)
Conditions Tab
¾ Record the total value of the Purchase order $__________(430)
¾ (Save)
¾

Message
Exercise 102: Create Purchase Order for Promotions Ltd.

Purpose of Exercise
The purpose of this exercise is to create a Purchase Order from a know supplier (Promotions Ltd.).
This is the first order and you need to evaluate their pens and timeliness of delivery.
Navigation
Menu Path
Trans Code ME21N

¾ Vendor (# for Promotions Ltd.)
Verify details of:
BPEN_ _ _ 500 (Future date) .50 USD
PPEN _ _ _ 5 (Future date) 3.50 USD
¾ (Header)
Conditions Tab
¾ Record the total value of the Purchase order $__________(267.50)
¾ (Save)
¾

Message
Exercise 103: Create a Goods Receipts for the Purchase Orders

Purpose of Exercise
The purpose of this exercise is to receive the stock items into inventory that were ordered from the
three vendors.
Navigation
Menu Path
Trans Code
System Menu: Settings → Default Values

¾ Select Propose the OK Function in Future
¾ Select Propose All Items
¾ (Adopt)
¾ (Continue)
¾ Enter the PO number 4500000???( next to the Purchase order field)
¾ (Execute)
¾ SLoc (Storage Location) 10 (Inventory)
¾ Select or (Save)
¾ Repeat exercise and receive the goods for all three PO’s individually.

Purchase order Message
Exercise 104: Create an Invoice Receipts from Vendors

Purpose of Exercise
The purpose of this exercise is to record the information from the invoice sent to you by the vendor.
The following vendor invoices for the stock items ordered should be entered.
INVOICE #567 (Today’s date) Slick Pens

ITEMS: QUANTITY PER PRICE:
BPEN _ _ _ 500 $0.65 $325.00
CPEN _ _ _ 250 $1.50 $375.00
BOX _ _ _ 1,000 $0.29 $290.00
TOTAL $990.00
Thank you for your order
INVOICE #3245 (Today’s date) Premier Pens

CPEN_ _ _ 250 $1.60 $400.00
PPEN _ _ _ 10 $3.00 $ 30.00
__________
TOTAL $430.00
INVOICE #7890 (Today’s date) Promotions Ltd

BPEN_ _ _ 500 $0.50 $250.00
PPEN _ _ _ 5 $3.50 $ 17.50
__________
TOTAL $267.50
Navigation
Menu Path
Trans Code
Basic data Tab

¾ Invoice date Today's date
¾ Purchase Order (Enter your purchase order number)
¾ (Enter)
¾ Enter amount: $ 990.00 (or whatever the amount from the physical
invoice above)
¾ (Enter)
Verify details of:

GL Description Amount Comments
Account
Verify details of:

Account
Verify details of:

Account
¾ (Post)

Purchase order Vendor Invoice # Message
¾ (Back)
Exercise 105: Post Payments to Vendors

Purpose of Exercise
The purpose of this exercise it to make payment to the vendors for the goods received. You will post a
payment to each of the three vendors from which you have purchase trading goods.
Since the invoices are due for payment now. You are requested to clear the invoices by posting
outgoing payments to the vendors using the bank account (100_ _ _) of your chart of accounts.
Navigation
Menu Path
Trans Code

Bank data
¾ Account 100_ _ _ (Bank – Checking)
¾ Amount Enter the amount you are going to pay
¾ Account (# for Slick Pens_ _ _)
¾ Select
¾ Review the balance. Choose the invoice you wish to make payment against by double clicking on the
USD Gross amount. Ensure “Not assigned” field equals zero.
¾ (Save)
Repeat this process for the other two vendors

Purchase order Vendor Invoice # Message
¾ (Exit back to the Easy Access Menu)
¾ Select
Exercise 106: Display Vendor Line Items

Navigation
Menu Path
Accounting → Financial Accounting → Accounts Payable → Account →
Display/Change Line Items
Trans Code

Vendor selection
¾ Vendor (Enter the vendor number range from the lowest to the highest)
Line item selection
¾ Select All items
¾ (Execute)
¾ Review for Open items
Unit 13:
Purpose of Unit
The purpose of Unit 13 is to have you run Material Requirements Planning to generate a purchase
requisition that you will convert to a purchase order. Following conversion of the requisition you will
change the quantity and complete the purchasing (procurement) cycle.
Exercise 107: Create Purchase Outline Agreement (Contract) for

Stock Items
Purpose of Exercise
The purpose of this exercise is to create a contract for the premium pen from Premier Pens for 100
pens in the next three months.
Navigation
Menu Path
Logistics → Materials Management → Purchasing → Outline Agreement →
Contract → Create
Trans Code ME31K

¾ Vendor (# for Premier Pens)
¾ Agreement Type MK (Quantity Contract)
¾ (Enter)
Administrative Fields
¾ Validity end (3 months from today)
¾ (Overview)
Outline Agreement Items
¾ Material PPEN_ _ _
¾ Targ. Qty 300
¾ Net Price $ 3,00
¾ SLoc 10
¾ (Save)

Message
No message record could be found for output of message.
¾ Select to accept the message.
Record Contract Number: ______________________________
Exercise 108: Run Material Requirements Planning – Single Item,

Single Level
Purpose of Exercise
The purpose of this exercise is to allow the system to plan the availability and requirements for the
premium pen.
Navigation
Menu Path
Logistics → Materials Management → Materials Requirements Planning (MRP) →
MRP → Planning → Single-Item, Single-Level
Trans Code

¾ Plant P_ _ _
¾ Processing key NETCH
¾ Create purchase req 2
¾ Delivery schedules 3
¾ Create MRP list 1
¾ Planning mode 1
¾ Scheduling 1
Display results before they are saved
¾ Select Display results before they are saved
¾ (Enter)

¾ Review the MRP list
¾ (Save)

Message
Exercise 109: Convert Proposed Purchase Requisition to Purchase

Order
Purpose of Exercise
In this exercise you will accept the system generated replenishment proposal for PPEN_ _ _. After you
have adopted the system proposal you will increase the quantity to 100 for PPEN_ _ _.
Navigation
Menu Path
MRP → Evaluations → Stock/Reqmts List
Trans Code

¾ Plant P_ _ _
¾ (Enter)
¾ Double click the MRP element PurRqs
¾ (Change Element)
Item Overview section
¾ Delivery Date Today’s Date
¾ Stor. Loc. 10
Item section
Source of Supply Tab
¾
¾ Select your line with your contract number (Info/agmt. 460000####)
¾
¾ Quantity 100
¾ (Save)
¾ Double click the MRP element PurRqs
¾ to convert the MRP generated purchase requisition to a PO.

¾ Vendor (# for Premier Pens)
¾ (Enter)
In the Document Overview window on left side of screen
¾ Click once on Open Requisitions
¾ (Adopt)
¾ (Item overview)
¾ (Header)
Conditions Tab
¾ Record the value of the Purchase Order Gross Price $ __________________
¾ (Save)
¾
¾ Record the Purchase Order Number _______________________________
¾ (Refresh)
¾ You should see the MRP Element Data changes to your Purchase Order Number
Exercise 110: Review Outline Agreements

Purpose of Exercise
Review the outline agreement you assigned to the purchase order.
Navigation
Menu Path
Logistics → Materials Management → Purchasing → Outline Agreements →
List Displays → By Agreement Number
Trans Code

¾ Purchasing document Leave Blank
¾ Purchasing organization P___
¾ (Execute)
¾ Examine your open target quantity
Exercise 111: Create a Goods Receipt

Purpose of Exercise
The purpose of this exercise is to receive the pens into inventory.
Navigation
Menu Path
Trans Code

¾ Purchase Order 4500000???
¾ (Execute)
¾ Once executed you should see the purchase order appear in the My Documents list on the left of the
screen, the document you are working with should be highlight in red.

¾ Make sure you have entered your storage location
¾ Select or (Save)

Message
Exercise 112: Create an Invoice Receipt from Vendor

Purpose of Exercise
The purpose of this exercise is to record the invoice sent by the vendor for the PO for the pens
ordered.
Premier Pens, Inc. INVOICE #203-45879

PPEN _ _ _ 100 $ 3.00 $ 300.00
__________
TOTAL $ 300.00
We appreciate your business
Navigation
Menu Path
Trans Code

Basic data Tab
¾ Currency (behind amount) USD
¾ Purchase Order (Enter your purchase order number)
¾ (Enter)
¾ Enter amount: $ 300 (from the physical invoice)
¾ Tax code: XI
¾ (Enter)
¾ (Post)

Message

Purpose of Exercise
This exercise has you post payment to the vendor for the pens. Since the invoice for Premier Pens is
due for payment. You are requested to clear the invoice amount by posting an outgoing payment using
the bank account (100_ _ _).
Navigation
Menu Path
Trans Code

Bank data
¾ Amount $ 300
¾ Text Invoice # 203-45879
¾ Account (for Premier Pens _ _ _)
¾ Select
¾ Review the balance. Choose the invoice you wish to make payment against by double clicking on the
GBP Gross amount. Ensure “Not assigned” field equals zero.
¾ (Post)

Message
¾ Select
Unit 14:
Purpose of Unit
The purpose of Unit 14 is to create the organizational structure necessary to carry out the customer
order management functions of your company.
Exercise 114: Create Sales Organization

Purpose of Exercise
This exercise will have you create the Sales Organization. This is the highest level organizational
structure in Sales and Distribution. Your pen company will have one Sales Organization.
The sales organization is the unit or structure responsible for the terms and conditions for the sale of
products or services.
Navigation
Enterprise Structure → Definition → Sales and Distribution →
Define, copy, delete, check sales organization
Trans Code
Double click on: Define Sales Organization.
¾ Select
¾ Sales Organization S_ _ _ (use your team number)
¾ Description Pen Inc Sales _ _ _
Detailed information
¾ Address text name ADRS_SENDER
¾ Letter header text ADRS_HEADER
¾ Footer lines text ADRS_FOOTER
¾ Greeting text name ADRS_SIGNATURE
¾ Sales org.calendar US
¾ Rebate proc.active Checked
¾ Select the address button
¾ Postal Code 57069
¾ City Vermillion
¾ Country US
¾ Region SD
¾ Language English
¾ (Copy
¾ (Save)
¾ (Copy) verify the address information.

Message
¾ (Exit)
¾ (Cancel)
(Alternative Option)
¾ Select S999
¾ (Copy As)
¾ Sales Organization S_ _ _
¾ (Enter)
Exercise 115: Assign Sales Organization to Company Code

Purpose of Exercise
This exercise will tie your Sales Organization to Finance Accounting (FI) by assigning it to your
Company Code.
Navigation
Enterprise Structure → Assignment → Sales and Distribution →
Assign sales organization to company code
Trans Code

¾ Select your sales organization S_ _ _
¾ Assign it to your company code C_ _ _
¾ (Enter)
¾ (Save)
¾ (Exit)

Message
Exercise 116: Define Distribution Channels

Purpose of Exercise
This exercise will have you review the two distribution channels you will be using. Since distribution
channels are created at the client level, once they are create everyone has access to them for use in
their own organizational structure. Distribution channels are used to define the way in which products
or services reach your customer.
Navigation
Enterprise Structure → Definition → Sales and Distribution →
Define, copy delete, check distribution channel
Trans Code
*The instructor, as a demonstration will complete this task.

All students will use these Distribution Channels throughout the remainder of the course.
¾ Double Click on Define distribution channel
¾ Select
¾ Create distribution channels
RE Retail
WH Wholesale
¾ (Save)

Message
¾ (Exit)
¾ (Cancel)
Exercise 117: Assign Distribution Channels to Sales Organization

Purpose of Exercise
This exercise has you assign the different ways in which your products reach your customer to your
Sales Organization.
Navigation
Assign distribution channel to sales organization
Trans Code
¾
¾ SOrg S_ _ _
¾ DChl RE
Next Line
¾ SOrg S_ _ _
¾ DChl WH
¾ (Save)

Message
¾ (Exit)
Exercise 118: Define Division

Purpose of Exercise
This exercise will have you review the division you will be using. Since divisions are created at the
client level, once they are create everyone has access to them for use in their own organizational
structure. Divisions are a way of grouping materials, products, or services. A product can exist in only
one division. It is a way in which you could further divide you distribution channels if you desired to do
so.
Navigation
Define, copy, delete, check division
Trans Code

All students will use this Division throughout the remainder of the course.
¾ Double Click on Define Division
¾ Select
¾ Create Division
01 General Products
¾ (Save)

Message
¾ (Exit)
¾ (Cancel)
Exercise 119: Assign Division to Sales Organization

Purpose of Exercise
This exercise will have you tie your Divisions, or groupings of materials, to your Sales Organization.
Navigation
Assign division to sales organization
Trans Code
¾
¾ SOrg: S_ _ _
¾ Dv: 01
¾ (Save)

Message
¾ (Exit)
Exercise 120: Set up Sales Areas

Purpose of Exercise
This exercise will have you create Sales Areas. Sales Areas are made up of a Sales Organization, a
Distribution Channel and a Division. Sales Areas are crucial in pricing.
Navigation
Set up sales area
Trans Code

Assign all the Distribution channels and Divisions to your Sales Organization as follows:
¾
¾ SOrg S_ _ _
¾ DChl RE
¾ Dv 01
Next Line
¾ SOrg S_ _ _
DChl WH
¾ Dv 01
¾ (Enter)
¾ (Save)

Message
¾ (Exit)
Exercise 121: Define Common Distribution Channels

Purpose of Exercise
This exercise is to define distribution channels which have common master data. The allocation is valid
within a sales organization.
Navigation
Sales and Distribution → Master Data → Define Common Distribution Channels
Trans Code

Locate your Sales Organizations
First Line (DChl RE)
¾ DCh-Conds RE
¾ DCh-Cust/Mt RE
Next Line (DChl: WH)
¾ DCh-Conds WH
¾ DCh-Cust/Mt WH
¾ (Save)

Message
¾ (Exit)
Exercise 122: Define Common Divisions

Purpose of Exercise
This exercise is to define the divisions that common master data should apply to. The definition is valid
within each sales organization.
Navigation
Sales and Distribution → Master Data → Define Common Division
Trans Code

Locate your Sales Organization
¾ DivCon: 01
¾ Div-Cus: 01
¾ (Save)

Message
(Exit)
Exercise 123: Define Loading Groups

Purpose of Exercise
The purpose of this exercise is to have you review the loading groups that have been established.
Loading Groups are created at the client level and once created are available for all to use.
Loading groups are a way of grouping of materials that share the same loading requirements. They
are also used in determining the shipping point in a plant.
Navigation
Logistics Execution → Shipping → Basic Shipping Functions →
Shipping Point and Goods Receiving Point Determination →
Define Loading Groups
Trans Code

These loading groups will be available to all users on this client.
¾ Select
First Entry
¾ LGrp Hand
¾ Description Load by Hand
Second Entry
¾ LGrp Cart
¾ Description Handcart
¾ (Enter)
¾ (Save)

Message
¾ (Exit)
Exercise 124: Create Shipping Point

Purpose of Exercise
This exercise has you create a shipping point within your plant. A shipping point is a physical location
inside your plant, from which you will ship items. Based on different loading and/or shipping
requirements, you can create one or more shipping points to meet your business requirements.
Navigation
Enterprise Structure → Definition → Logistics Execution →
Define, copy, delete, check shipping point
Trans Code
Double click on “Define shipping point”
¾ Select
¾ Shipping Point S_ _ _
¾ Shipping Point Description Shipping Point _ _ _
Times
¾ Factory Calendar US
¾ Leave all other fields blank.
¾ Select (Address)
Street Address
¾ City Vermillion
¾ Country US
¾ Region SD
¾ (Copy).
¾ (Save)
¾ (Copy) …to verify the address information.

Message
¾ (Exit)
¾ (Cancel)
Exercise 125: Assign Plant to Sales Organization and Distribution

Channel
Purpose of Exercise
This exercise will enable the integration between the Material Management (MM) and the Sales and
Distribution (SD) modules. You will need to assign your plant to all combinations of a Sales
Organization and a Distribution Channel.
Navigation
Assign sales organization – distribution channel – plant
Trans Code
¾
¾ SOrg: S_ _ _
¾ DChCust/Mt: RE
¾ Plnt: P_ _ _
Next Line
¾ SOrg: S_ _ _
¾ DChCust/Mt: WH
¾ Plnt: P_ _ _
¾ (Save)

Message
¾ (Exit)
Exercise 126: Assign Shipping Point to Plant

Purpose of Exercise
The purpose of this exercise is to assign your shipping point to your plant. A shipping point can only
exist in one plant. However, a plant can have many shipping points. The number of shipping points
will be dependent on your business requirements. Remember that a shipping point is a physical
location within a plant from which items are shipped.
Navigation
Enterprise Structure → Assignment → Logistics Execution →
Assign shipping point to plant
Trans Code

¾ Select your plant by double-clicking P_ _ _
¾ From the pop-up window, select YOUR shipping point to be assigned to your plant
¾ (Copy)
¾ (Save)

Message
¾ (Exit)
Unit 15:
Purpose of Unit
The purpose of Unit 15 is to create additional master data needed for conducting the customer order
management cycle. This will include creating the additional views needed for the material master,
creating additional General Ledger accounts, creating customers and assigning a pricing procedure.
Exercise 127: Create Sales Views for Trading Goods

Purpose of Exercise
This exercise will have you create (extend) the trading good materials created in earlier material
management exercises. These new views for the material masters must now be created (extended) to
include the sales views in order to make the materials available for sale.
Additionally, materials must have sales views created (extended) for both distribution channels where
they will be sold; RE and WH.
Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Products → Material →
Trading Goods → Create
Trans Code MMH1
Defaults → Organization levels… Copy from…

Company Code C_ _ _ C_ _ _
Plant P_ _ _ P_ _ _
Sales Org S_ _ _ S_ _ _
Distr Channel* RE RE
¾ (Continue)
System Menu: Defaults → Views…
¾ Select the views: Sales: Sales Org. Data 1
Sales: Sales Org. Data 2
Sales: General/Plant Data
¾ (Continue)
¾ (Enter)
Sales: Sales org. 1 Tab

General data
¾ Division 01 (General Products)
¾ Delivering Plant P__ _
Tax data
¾ Tax Jurisdiction Code UTXJ 0 (Exempt)
¾ County Sales Tax UTX2 0 (Exempt)
¾ City Sales Tax UTX3 0 (Exempt)
¾ (Enter)
Sales: sales org. 2 Tab

Grouping terms
¾ Mat. Statistics Group 1 (“A” materials)
¾ (Enter)
Sales: General/Plant Tab

Shipping data (time in days)
¾ Trans. grp.: 0001 Pallets (for route determination)
¾ Loading Grp.: HAND Load by Hand (for shipping point determination)
¾ (Save)*
¾ Complete for the other materials that you sell using the same settings as BPEN_ _ _:
¾ CPEN_ _ _
¾ PPEN_ _ _
¾ BOX_ _ _
Repeat this process for each material that you will sell in the Distribution channel: WH
*Remember to change the defaults from RE and create the WH views for all the materials
Hint: To expedite the Sales view creation process use the “copy” method by entering a material (that
has already been extended) in the “Copy from…” field. Then continue as instructed, noticing that the
initial materials data defaults into the new materials fields.
Record the system messages:

Material Created/Extended Created/Extended
BPEN_ _ _
CPEN_ _ _
PPEN_ _ _
BOX_ _ _
¾ (Exit)
Exercise 128: Create Sales Revenue Account

Purpose of Exercise
This exercise will have you create the two general ledger accounts you will need to record revenues
and discounts from revenues.
Navigation
Menu Path
Trans Code

¾ (Create)
Description
¾ Short text Sales Revenue
¾ G/L acct long text Sales Revenue
Control Data TAB

¾ Account currency USD
¾ Posting without tax allowed Selected
Account management in company code

¾ Sort key 001
¾ (Save)

Message
Exercise 129: Create Sales Revenue Deductions Account

Purpose of Exercise
To process billing we will need Profit & Loss Statement accounts for Sales Revenue and Sales
Discounts
Navigation
Menu Path
Trans Code

¾ (Create)
Description
¾ Short text Revenue Deductions
¾ G/L acct long text Revenue Deductions
Control Data TAB

¾ Account currency USD
¾ Posting without tax allowed Selected
Account management in company code

¾ Sort key 001
¾ (Save)

Message
¾ (Exit)
Exercise 130: Review Sold-to, Ship-to, Payer & Bill-to Account

Groups
Purpose of Exercise
This exercise is to have you review the different account groups that you will use to create your
customers. Account groups control the data required to create customers (business partners)
This is a review only exercise (Do not change or save).
Navigation
Customer Accounts → Master Data →
Preparations for Creating Customer Master Data →
Define Account Groups with Screen Layout (Customers)
Trans Code
¾ (Change-->Display)
¾ Select 0001 - Sold-to Parties
¾ (Details)
¾ Select
¾ Review the required fields by double clicking on the various groups
¾ (Back)
¾ Select Company code data
¾ Select
¾ Review the required fields of the various groups
¾ (Back)
¾ Select Sales data
¾ Select
¾ (Back) Twice
¾ Select 0002 – Goods Recipient (Ship-to)
¾ (Details)
¾ Select
¾ (Back)
Exercise 131: Create Customer

Purpose of Exercise
The purpose of this exercise is to have you create customers. You have already created business
partners (Vendors) in both Financial Accounting (FI) and Material Management (MM). Since you are in
the Sales and Distribution (SD) module now, you will create general, company code (FI) and sales and
distribution (SD) views for your customers. When you created vendors you could create them centrally
– this created all three views from a single point. The same functionality is available for customers. In
Sales and Distribution (SD) it is called “Create Complete” indicating that you want to create the General
Data, Company Code (FI) and Sales and Distribution views at the same time.
In this exercise you will create five customers. Three of these will be in your retail distribution channel
and two will exist in your wholesale distribution channel.
Navigation
Menu Path
Trans Code XD01
¾ Account group Sold-to party

¾ Customer (Leave blank)
Sales Area
¾ Distribution Channel as listed below for each customer
¾ Division 01
¾ (Continue)
You will create the following customers:

• The Rushmore Group, LLC – Vermillion, SD 57069 Dist.Ch: RE
• SAP, America – Newtown Square, PA 19073 Dist.Ch: RE
• Promotional Products, Inc. – Sacramento, CA 95814 Dist.Ch: WH
• Pleasure Boats Buying Group – Miami, FL 33010 Dist.Ch: WH
• Tanagers Leasing – Vermillion, SD 57069 Dist.Ch: RE (Customer and Vendor)
Address TAB:
Name
¾ Name: Customer’s name (see above list)
Search term
¾ Search Term: ___
Street Address
¾ Postal Code: Customer’s zip code
¾ City: Customer’s city
¾ Country: US
¾ Region: Customer's State
¾ Transportation zone Enter appropriate Transportation zone (used for route determination)
Communication
¾ Language: English
Control data TAB (only when creating for Tanager Leasing):

Account control
¾ Vendor Enter the vendor number for Tanager Leasing – remember that Tanager
Leasing is not only a customer but also a vendor

Account Management TAB:
¾ Recon. account Enter your A/R reconciliation account number (110_ _ _)
¾ Sort key 001 (posting date)
Payment transactions TAB:

Payment Data
¾ Terms of payment 0001 (Payable immediately, Due net)
¾ Select
Sales TAB:
Sales order
¾ Currency: USD
Pricing/Statistics
¾ Cust.pric.proc. 1 (standard)
¾ Cust. Stats. Grp 1 “A” material. (helps determine which data are updated in the LIS)
Shipping TAB:
Shipping
¾ Delivery priority 02 (normal item)
¾ Order Combination Selected (default)
¾ Shipping Conditions 01 (standard)
¾ Delivering Plant P_ _ _
Partial deliveries
¾ Max.part.deliveries 3 (9 is the default)
Billing Document TAB:

Delivery and payment terms
¾ Incoterms FOB, Origin Shipping Dock (note the both are necessary)
¾ Payment terms 0001
Accounting
¾ Acct assgmt group 01 (Domestic Revenues)
Taxes
¾ Tax Classification 0 (for all 3 tax categories)
¾ (Save)
¾ Repeat for each of the new customers and record their customer numbers.
Customer Customer Number
The Rushmore Group, LLC
SAP, America
Promotional Products, Inc.
Pleasure Boats Buying Group
Tanagers Leasing
Exercise 132: Create Ship-to party

Purpose of Exercise
In this exercise you will create an alternative ship-to location or goods recipient. SAP, America has an
organization to which they wish to have you ship directly. This new ship-to or goods recipient party is
SAP, America – UAP (University Alliance Program). In order to do this you will create a specific ship-to
customer for this separate address.
Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Business Partners →
Trans Code
¾ Account group Goods Receipt

¾ Customer (Leave blank)
Sales Area
¾ Distribution Channel RE
¾ Division 01
¾ (Continue)
Address TAB:
Name
¾ Name SAP, America – UAP
Search term
¾ Search term ___
Street Address
¾ City Newtown Square
¾ Country US
¾ Region PA
¾ Transportation zone 000000001
Communication
¾ Language English

Account Management TAB:
¾ Recon. account Enter your A/R reconciliation account number (110_ _ _)
¾ Sort key 001 (posting date)
Payment Transactions TAB:

Payment data
¾ Terms of payment 0001 (Payable immediately, Due net)
Select
Shipping TAB:
Shipping
¾ Delivery Priority 02 (normal item)
¾ Order Combination Selected (default)
¾ Shipping Conditions 01 (standard)
¾ Delivering Plant P_ _ _
Partial deliveries
¾ Max. partial deliveries 3 (9 is the default)
Billing Document TAB:

Taxes
¾ Tax Classification 0 (for all 3 tax categories)
¾ (Save)

Customer Customer Number
SAP, America - UAP
¾ (Exit)
Exercise 133: Assign Ship-to party to Customer

Purpose of Exercise
In this exercise you will assign the newly created good recipient to the sold-to party created in an
earlier exercise. Please note that the purpose of this exercise is to end up with an additional ship-to
party – not to replace the old ship-to party with a new one. You will complete this by changing the
original SAP, America customer by adding SAP, America – UAP customer as an additional ship-to
party on the Partner Functions Tab of the sold-to party.
Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Business Partners →
Customer → Change → Complete
Trans Code

¾ Customer: Customer # for SAP, America
Sales area
¾ Distribution channel RE
¾ Division 01
¾ (Continue)
¾ Select (if needed)

Partner Functions TAB:
Partner Functions
¾ Partner function (add new line) SH (Ship-to party)
¾ Number Customer # for SAP, America - UAP
¾ (Enter)
“Ship to Party” and the name will appear.
¾ (Save)

Message
¾ (Exit)
Unit 16:
Purpose of Unit
The purpose of Unit 16 is to define prices for materials, specific customer prices, and discounts. In this
unit you will also establish credit limits for your customers and define those material stocks that will be
considered when you are conducting an availability check for a sales order.
Exercise 134: Create Material Prices

Purpose of Exercise
In this exercise you will create material prices that any customer would pay. In determining price this
would be the last price that would be used to determine pricing for an item.
Prices are defined by Sales Organization and Distribution Channel.
Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Conditions → Create →
Prices → Material Price
Trans Code VK31
Enter the following information to set up retail prices:
¾ Select Cnty SOrg. DChl Material ReSt

Enter the following material and pricing information:

(Co) Condition Material Amount
PR00 BPEN_ _ _ $ 1.09
PR00 CPEN_ _ _ $ 2.29
PR00 PPEN_ _ _ $ 9.95
PR00 BOX_ _ _ $ 0.49
¾ (Enter)
The system will automatically enter the material descriptions, units of measure, and validity dates.
¾ (Save)

Message
Enter the following information to set up wholesale prices:
¾ Double click on
¾ Select Cnty SOrg. DChl Material ReSt

¾ Sales Organization S___
¾ Distribution Channel WH
Refer the table on the next page…

(Co) Condition Material Amount
PR00 BPEN_ _ _ $ 0.89
PR00 CPEN_ _ _ $ 1.99
PR00 PPEN_ _ _ $ 7.50
PR00 BOX_ _ _ $ 0.49
¾ (Enter)
The system will automatically enter the material descriptions, units of measure, and validity dates.
¾ (Save)

Message
¾ (Exit)
Exercise 135: Create Customer Specific Material Price

Purpose of Exercise
In this exercise you will create a special price that a specific customer receives for a specified validity
period.
This allows you to create special customer/material pricing.
Navigation
Menu Path
Prices → Individual Prices
Trans Code VK31
¾ Select CnTy SOrg. DChl Customer Material ReSt

¾ Customer SAP, America

(Co) Condition Material Amount Valid From Valid to
PR00 CPEN_ _ _ $ 2.09 Today’s Date 3 months from today
PR00 PPEN_ _ _ $ 8.50 Today’s Date 3 months from today
¾ (Enter)
The system will automatically enter the material descriptions and units of measure
¾ (Save)

Message
¾ (Exit)
Exercise 136: Create Customer Discount

Purpose of Exercise
The purpose of this exercise is to show how a customer specific discount is created.
This also serves to introduce you to the concept of a pricing scale.
This condition type is currently set for Item condition (line item), but could be changed to Header
condition in configuration. If it is set to a Header condition, the discount would apply to the order as a
whole rather than to the individual line items in the order.
Navigation
Menu Path
Discounts/Surcharges → By Customer
Trans Code VK31
¾ Select CnTy SOrg. DChl Customer ReSt

Customer with Release Status
¾ (Co) Condition K007
¾ Customer Promotional Products, Inc.
¾ (Enter)
¾ Select K007 line
¾ Click on the scales button to give the customer a discount of 5% for order values between
$1,000.00 and $1,999.99 and a discount of 8% for order values between $2,000.00 and $2,999.99
and a discount of 10% for orders larger than $2,999.99.
Scale value 1000.00 Amount 5

¾ (Save)

Message
¾ (Exit)
Exercise 137: Establish Credit Limit for Customers

Purpose of Exercise
The purpose of this exercise is to establish credit limits for your customers. Each customer has an
established credit limit. How the system reacts to a customer that has exceeded the credit limit you
established is determined in configuration. The current setting is to provide a warning message, but
not stop the processing of an order or delivery.
Navigation
Menu Path
Logistics → Sales and Distribution → Credit Management → Master Data →
Change
Trans Code FD32

¾ Customer Customer # for The Rushmore Group, LLC
¾ Credit control area C_ _ _
¾ Check the following Overview
Central Data
Status
¾ (Enter)
Page forward to:
Customer Credit Management Change: Central Data
Maximum permitted credit limits
¾ Total amount 5000
¾ Individual limit 5000
¾ Currency USD
Customer Credit Management Change: Status
Credit limit data
¾ Credit Limit 5000
¾ (Save)
Repeat this for the other four customers (amounts need to be in all three places).
Customer Credit limit Currency

The Rushmore Group, LLC $ 5,000 USD
SAP, America $ 25,000 USD
Promotional Products, Inc. $ 2,500 USD
Pleasure Boats Buying Group $ 5,000 USD
Tanager Leasing $ 1,000 USD

Message
¾ (Exit)
Unit 17:
Purpose of Unit
The purpose of Unit 16 is to complete some final details necessary to prepare you for the
comprehensive system test that begins in the next unit. This unit will have you create some specialized
master data as well as complete the final configuration steps of shipping point and revenue account
assignment determinations.
Exercise 138: Assign Sales Areas to Pricing Procedure

Purpose of Exercise
The purpose of this exercise is to link your sales area to a pricing procedure. The RVAJUS pricing
procedure is the standard USA pricing procedure with jurisdiction code. The pricing procedure which
will be discussed in detail in the next unit is the manner in which prices are assigned to individual line
items in your order as well as discounts, surcharges, etc.
Navigation
Sales and Distribution → Basic Functions → Pricing → Pricing Control →
Define and Assign Pricing Procedures
Trans Code
Double click on Define Pricing Procedure Determination

¾ Select
Verify details of:
SOrg DChl Dv DoPr CuPP PriPr
S_ _ _ RE 01 A 1 RVAAPC
S_ _ _ WH 01 A 1 RVAAPC
¾ (Enter)
¾ (Save)

Message
¾ (Exit)
¾ (Cancel)
Exercise 139: Define Availability Check for Sales Orders

Purpose of Exercise
This exercise will have you review the stocks that are to be included when you conduct and availability
check at time of inquiry, quotation, order, delivery, etc. This is completed at the client level and as such
you will only need to review this. It is important to note the type of stock and their status as to whether
or not they are considered during the availability check.
Navigation
Sales and Distribution → Basic Functions →
Availability Check and Transfer of Requirements → Availability Check →
Availability Check with ATP Logic or Against Planning →
Carry Out Control for Availability Check
Trans Code

This availability check rule will be available to all users on this client.
The instructor will complete the following information:
¾ Select 02 for A (SD orders)
¾ Select (Display)
Replenishment Lead time
¾ Deselect Check without RLT
¾ (Back Twice)
¾ Student select 02 for A (SD orders)
¾ Select (Display)
¾ (Back Twice)
Exercise 140: Assign Sales and Delivery Documents to Credit Check

Purpose of Exercise
The purpose of this exercise is to assign sales and delivery documents to a Credit Check.
Navigation
Sales and Distribution → Basic Functions →
Credit Management/Risk Management → Credit Management →
Assign Sales Documents and Delivery Documents
Trans Code
Verify the following information
Double click on Credit limit check for order types

¾ For Order type OR
¾ Credit Check A
¾ (Back)

Message
¾ (Exit)
¾ (Cancel)
Exercise 141: Create Shipping Point Determination

Purpose of Exercise
In this exercise you will create the table that will determine the shipping point to be used in your plant.
While you have only created one shipping point, you still need to create the determination table. In
determining the shipping point, the following are considered:
• The Plant from the (1) Customer Ship-to Master or the (2) Material Master,
• The Shipping Conditions from the customer master, and
• The Loading Group from the material master.
Navigation
Logistics Execution → Shipping → Basic Shipping Functions →
Shipping Point and Goods Receiving Point Determination →
Assign Shipping Points
Trans Code
¾ Select
Shipping Point Information:
SC (Shipping LGrp Plnt PrShP (Proposed Shipping point):
condition): (Loading group): (Plant):
01 (Standard) HAND (Load by Hand) P_ _ _ S_ _ _
01 (Standard) CART (Handcart) P_ _ _ S_ _ _
¾ (Enter)
¾ (Save)

Message
¾ (Exit)
Exercise 142: Create Revenue Account Assignment Key

Purpose of Exercise
This exercise creates the automatic posting of revenues when the billing document is created. At time
of billing revenues are posted to the General Ledger Account. Which account to be posted is
determined by a combination of:
• The Sales Organization,
• The Account assignment key, and
• The Account Assignment Group (Customer Master)
Navigation
Sales and Distribution → Basic Functions → Account Assignment/Costing →
Revenue Account Determination → Assign G/L Accounts
Trans Code
¾ Select Table 2: “Cust. Grp/Account Key”
¾ (Choose)
¾ Select
Account assignment information:
App CndTy ChAc SOrg AAG ActKy G/L Account
V KOFI C_ _ _ S_ _ _ 01 ERL 600_ _ _
V KOFI C_ _ _ S_ _ _ 01 ERS 610_ _ _
¾ (Enter)
¾ (Save)

Message

Purpose of Exercise
The purpose of this exercise is to obtain current inventory information about your products.
Navigation
Menu Path
Logistics → Materials Management → Inventory Management → Environment →
Stock → Stock Overview
Trans Code MMBE
Database selections
¾ Material Choose any material
¾ Plant P_ _ _
¾ (Execute)
¾ Select
selected.
¾ Record the unrestricted use quantity (Unrestricted use) stock type

¾ Record the sales orders quantity (Sales orders) stock type
¾ Record the delivery quantity (Scheduled for delivery) stock type
Plant BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _
Storage Location
Stock Type Quantity Quantity Quantity Quantity
Unrestricted Use
Sales Orders
Comprehensive Test of Business Case Scenario
Unit 18:
Purpose of Unit
The purpose of Unit 18 is to provide a comprehensive testing of the organizational and master data,
you have set up using a series of transactions. These transactions will provide you with an
understanding of how the options you selected during configuration impact your transactions.
Exercise 144: Create Sales Order

Purpose of Exercise
This exercise will have you create a sales order. This if the first exercise that will test the configuration
of your system as a trading goods company. The other exercises in this unit replicate the sales
exercises completed in Unit 2.
Navigation
Menu Path
Trans Code VA01
¾ Order type OR
Organizational Data
¾ Division 01
¾ (Enter)
¾ Sold-to party Customer # for The Rushmore Group, LLC
¾ PO Number 144-_ _ _
¾ PO date Today’s date
Sales TAB
¾ Req. deliv. date 3 days from today

Material QTY
BPEN_ _ _ 250
CPEN _ _ _ 100
PPEN _ _ _ 50
BOX _ _ _ 150
¾ (Enter)
Review
Item Specific Data:
¾ Select line item 10
¾ (Conditions)
¾ Review item pricing
What is the price per unit for BPEN_ _ _? _____________________
¾ (Back)

¾ (Schedule lines for item)
¾ What is the date for the confirmed quantity? _______________________
¾ (Back)

¾ (Display availability)
¾ What is a simulated Requirement? _____________________________________
¾ (Back)
Header Data:
System Menu: Goto → Header → Sales
Sales TAB
Note and record the pricing procedure ______________________
Conditions TAB
Note and record the net value for the order – this is the total of all line items $____________________
¾ (Back)
¾ (Save)

Message
¾ (Exit)

Purpose of Exercise
The purpose of this exercise is to update the current inventory information about your products.
¾ Open a new session (or System Menu: System → Create session)

Navigation
Menu Path
Trans Code
Database selections
¾ Material Any material from your sales order
¾ Plant P_ _ _
¾ (Execute)
¾ Select
selected.

Storage Location
Unrestricted Use
Sales Orders
Exercise 146: Create Delivery Note for Sales Order

Purpose of Exercise
The purpose of this exercise is to create a delivery based on the customer’s order. Creating the
delivery brings your order to the point where stock availability is re-determined, and the quantity of
ordered items are moved to a scheduled for delivery stock status.
Navigation
Menu Path
Trans Code

¾ Shipping point: S_ _ _
Sales order data
¾ (Enter)
Item Overview Tab
¾ (Item Details)
¾ What is the picking status? _______________________________
¾ (Back)
Picking Tab:
¾ Enter the Storage location for each item
¾ Sloc: 10 (Inventory)
¾ (Save)

Message

Purpose of Exercise
¾ Open a new session (or System Menu: System → Create session)

¾ Now go to your other session (Alt + Tab), and leave this session open.
¾ Click on the REFRESH icon or if the Stock Overview is no longer displayed enter the menu
path and information below.
Navigation
Menu Path
Trans Code
Database selections
¾ Plant P_ _ _
¾ (Execute)
¾ Select
selected.

Storage Location
Unrestricted Use
Sales Orders
Exercise 148: Picking Materials on Delivery Note

Purpose of Exercise
The purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the
proposed materials per delivery.
Navigation
Menu Path
Trans Code VL02N

¾ (Enter)
Picking Tab
¾ Picked Qty = Deliv. Qty
¾ (Save)
¾ Recheck the stock status of the materials. Note that no change has occurred in the stock status - the
quantities are still in the “Schd. for delivery” stock type field.

Message

Purpose of Exercise
This exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect
the inventory shipped. This is the time at which the ownership of the goods changes from you to the
customer. These goods have left your plant and are now owned by your customer. Both inventory and
costs of goods sold are impacted by this transaction.
If you have shipped or sold the goods FOB Destination, the actual change of ownership takes place at
the time the goods are received at the customer’s location. However, the system reflects the materials
are no longer available in your stock at the time of post good issue.
Navigation
Menu Path
Outbound Delivery → Change→ Single Document
Trans Code

¾ Select

Message

Purpose of Exercise
¾ Now go to your other session (Alt + Tab), and leave this session open.
¾ Click on the REFRESH icon or if the Stock Overview is no longer displayed enter the menu
path and information below.
Navigation
Menu Path
Trans Code
Database selections
¾ Plant P_ _ _
¾ (Execute)
¾ Select
selected.

Storage Location
Unrestricted Use
Sales Orders
Exercise 151: Bill Customer

Purpose of Exercise
This exercise will create the billing document for the customer. It is at this time when the revenue is
recognized and posted to the general ledger. Once the post goods issue has been completed, you can
bill your customer for those goods.
Navigation
Menu Path
Trans Code VF01
¾ (Execute)
¾ (Save)

Message

Purpose of Exercise
This exercise will see your customer paying the invoice you created in the billing exercise. The
payment will be posted to the general ledger accounts. This entry will increase the bank account and
reduce the customers account receivable balance as well as the account receivable reconciliation
account.
Navigation
Menu Path
Document Entry → Incoming Payment
Trans Code

Bank data:
¾ Account: 100_ _ _
Open item selection

¾ Account: Customer # for The Rushmore Group, LLC
¾ Select
¾ Double click on “USD gross” amount for the Customer Invoice until “Not assigned” is $ 0.00
¾ (Post)
¾ Record the document number for this posting ________________

Message
¾ (Exit)
Exercise 153: Review Document Flow

Purpose of Exercise
This exercise provides you with exposure to a powerful tool in customer order management. The
document flow provides a look at the entire transaction from beginning to the end. In this example, you
have created an order, a delivery, posted goods issue, billed the customer and received payment. To
examine the flow, you can begin with any one of these document numbers and the document flow will
show an audit trail of all documents tied to that number.
Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Order → Display
Trans Code
¾ Enter your sales order number.
System Menu: Environment → Display Document flow
The system displays a list of documents associated with the order.
¾ Click on the line of the GD goods issue: delvy 49000….###
¾ Select
The system displays the material document with a goods movement “601”, which is the movement type
for goods issue to a delivery note (Post Goods Issue).
¾ Select to view the account postings for this goods movement.
¾ (Back) To the Document Flow Screen

It can be seen that the:
1. The entire document flow is shown.
2. There are no open documents.
3. The business cycle is complete.
Note: You can view the document flow from the Sales Order, Delivery or Billing screens.
¾ Click on the line of the Standard Order #

¾ Select the
¾ The document flow can be seen in greater detail.
¾ Click on the line of the Outbound Delivery #

¾ Select the
¾ The Document Header Status can be viewed
Unit 19:
Purpose of Unit
The purpose of Unit 19 is to create a sales order using your customer info record for Pleasure Boats
Buying Group and then complete the order to cash business process.
Exercise 154: Create Customer Material Info Record

Purpose of Exercise
This exercise introduces you to the concept of Customer Material Information Records. When a
customer wishes to order materials from us using a different naming convention than you do, you can
set up a Customer Material Info Record which allows us to enter materials by the customer's specific
naming convention. This is especially true in the wholesale area. Customers order products by their
product number not necessarily your product number. SAP provides for the translation of these
materials into your material names, which enables the customer and your sales representative to
communicate clearly.
Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Agreements →
Customer Material Information → Create
Trans Code VD51

¾ Customer Customer # for Pleasure Boats Buying Group
¾ (Enter)
¾ Enter the following materials and the corresponding customer material name as indicated:
Material – Customer Specific Information:
Material No Pleasure Boats Buying Group Material Number
BPEN_ _ _ Pen-Low
CPEN_ _ _ Pen-Med
PPEN_ _ _ Pen-High
BOX_ _ _ Pen-Box
¾ (Enter)
¾ (Save)

Message
Exercise 155: Create Sales Order Using Customer Info Record

Purpose of Exercise
This exercise will have you create a sales order using Pleasure Boats Buying Group customer/material
info record (their part numbers/name).
Navigation
Menu Path
Trans Code
¾ Order type OR
Organizational Data
¾ Distribution channel WH
¾ Division 01
¾ (Enter)
¾ Sold-to party Customer # for Pleasure Boats Buying Group
¾ PO Number 155-_ _ _
¾ (Enter)
Ordering party tab

A new field appears in the Sales Order line item: “Customer Material Numb.”
Enter the following customer materials and quantities:

Customer Material Numb Order Quantity Material (Leave blank)
Pen-Low 250
Pen-Med 100
Pen-High 30
Pen-Box 130
¾ (Enter)
Note: The system references the customer material numbers and copies our equivalent material number
and all relevant data.
¾ Check the pricing to see that wholesale pricing was applied.
¾ Go to the header and record the Sales Orders Net Value $________________________
¾ (Save)
Record the order number: _______________________

Message
Exercise 156: Create Delivery for Sales Order

Purpose of Exercise
The purpose of this exercise is to create a delivery based on the customer’s order. Creating the
delivery brings your order to the point where stock availability is re-determined, and the quantity of
ordered items are moved to a scheduled for delivery stock status.
Navigation
Menu Path
Trans Code

Sales order data
¾ (Enter)
Item Overview Tab
¾ (Item Details)
¾ What is the picking status? _______________________________
¾ (Back)
Picking Tab:
¾ Enter the Storage location for each item
¾ Sloc: 10 (Inventory)
¾ (Save)

Message
Exercise 157: Pick Materials on Delivery Note

Purpose of Exercise
The purpose of this exercise is to pick the materials. The delivery note indicates the quantity of the
proposed materials per delivery.
Navigation
Menu Path
Trans Code

¾ (Enter)
Picking Tab
¾ Picked Qty = Deliv. Qty
¾ (Save)
To recheck the stock status (see earlier exercises):

¾ Create new session.
¾ Check the stock status of the materials
¾ Check the stock status of the materials. Note that the stock status - the quantities are in the “Schd.
for delivery” stock type field.

Message

Purpose of Exercise
This exercise will have you post goods issue. Post goods issue reduces unrestricted stock to reflect
the inventory shipped. This is the time at which the ownership of the goods changes from you to the
customer. These goods have left your plant and are now owned by your customer. Both inventory and
costs of goods sold are impacted by this transaction.
Navigation
Menu Path:
Trans Code:

¾ Select
To recheck the stock status (see earlier exercises):

¾ Switch back to your other session that is still on the Stock overview.
¾ Check the stock status of the materials
Note the quantity from the “Schd. for delivery” stock type has disappeared and the “Unrestricted use”
stock quantity has been reduced.

Message
Exercise 159: Bill customer

Purpose of Exercise
Navigation
Menu Path
Trans Code
¾ (Execute)
¾ (Save)

Message

Purpose of Exercise
account.
Navigation
Menu Path:
Trans Code:

Bank data:
¾ Account: 100_ _ _
Open item selection

¾ Account: Customer # for Pleasure Boats Buying Group
¾ Select
¾ Review the “Not assigned” amount. Is it equal to zero?
¾ (Post)

Message
¾ Return to the Sales Order and review the Document flow for the customer orders that you just
processed.
Unit 20:
Purpose of Unit
The purpose of Unit 20 is to create a sales order using a scheduling agreement for The Rushmore
Group and deliver against the scheduling agreement.
Exercise 161: Create a Scheduling Agreement

Purpose of Exercise
This exercise will have you create a scheduling agreement for The Rushmore Group.
Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Scheduling Agreement → Create
Trans Code
¾ Sched. Agreemt Type LP

Organizational Data
¾ Division 01
¾ (Enter)
¾ Scheduling Agreeme (leave blank)
¾ Sold-to party The Rushmore Group, LLC
¾ Ship-to part leave blank
¾ PO number 161-_ _ _
Item overview TAB:

¾ Description: Scheduling Agreement _ _ _
¾ Valid-from date: Today’s date
¾ Valid-to date: Six months from today’s date
All items
¾ Material: CPEN_ _ _
¾ Target quantity: 250
¾ (Enter)
¾ Select the item line for CPEN_ _ _

¾ Select Schedule lines for items button from the button bar on the bottom
Enter three schedule lines

¾ First line 6 days from today for 50 pens
¾ Second line 14 days from today for 100 pens
¾ Third line: 2 months from today for 100 pens
¾ (Enter)
¾ (Save)
¾ Record the Scheduling Agreement Number: ___________________

Message
Exercise 162: Process Deliveries for a Scheduling Agreement

Purpose of Exercise
This exercise will have you create a delivery with reference to the scheduling agreement.
Navigation
Menu Path
Trans Code

Sales order data
¾ Order: Enter the order number of the Scheduling Agreement created earlier
¾ (Enter)
¾ Performing the steps for Picking and Posting Goods Issue.
¾ Record Outbound Delivery Number: _________________________
¾ Repeat the exercise using a selection date 14 day’s from today’s date
¾ Record Outbound Delivery Number: _________________________
Note that by selecting dates after the due date of each schedule line, only the material scheduled
as due by that date is selected
Record any system message:

Message
Exercise 163: Display Scheduling Agreement

Purpose of Exercise
This exercise has you display the scheduling agreement you created earlier to review the current
status.
Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Scheduling Agreement → Display
Trans Code
¾ Scheduling Agreement Scheduling Agreement # you created
¾ (Enter)
¾ Select the line item
¾ Select (Schedule lines for item)
Note the “Delivered qty” field now has the quantity of the material delivered filled in for those deliveries
that have been made.
Select (Display document flow)
Review the document flow you will see one schedule agreement followed by first outbound delivery, the
picking request and the post goods issue then the second outbound delivery, the picking request and the
post goods issue.

Purpose of Exercise
Navigation
Menu Path
Trans Code
Database selections
¾ Material CPEN _ _ _ (check for all materials and record below)
¾ Plant P_ _ _
¾ (Execute)
¾ Select
selected.

¾ Check the customer scheduling agreements quantity (Customer Scheduling Agreements) stock type
Storage Location
Unrestricted Use
Sales Orders
Customer Scheduling Agreements
Exercise 165: Bill customer

Purpose of Exercise
Navigation
Menu Path
Trans Code
Create a billing document for each of the two outbound delivery documents created in exercise 162.
¾ Record the billing document number for the 1st delivery: __________________________
¾ Record the billing document number for the 2nd delivery: __________________________
¾ What is the total for both invoices? ___________________________

Message
Exercise 166: Run Customer Credit Check

Purpose of Exercise
The purpose of this exercise is to review the customer credit profile.
Navigation
Menu Path
Logistics → Sales and Distribution → Credit Management →
Credit management info system → Overview
Trans Code

¾ Credit account Customer # for The Rushmore Group, LLC
¾ Credit control area C_ _ _
¾ (Execute)
¾ Place cursor on customer number

System Menu: Environment → Credit Master Sheet
¾ Review information

Purpose of Exercise
account.
Navigation
Menu Path:
Trans Code:

Bank data:
¾ Account: 100_ _ _
¾ Amount: Enter the amount of the payment (total from both invoices)
Open item selection

¾ Account: Customer # for The Rushmore Group, LLC
¾ Select
¾ Review the “Not assigned” amount. Is it equal to zero?
¾ (Post)
¾ Note that we can clear more than one invoice with a single incoming payment.

Message
¾ Return to the Scheduling Agreement and review the Document flow for the agreement.
Unit 21:
Purpose of Unit
The purpose of Unit 21 is to create two sales orders. One sales order using the item proposal and the
second sales order that will result in a credit warning, as well as request more goods than you have for
sale. This will require you to run Material Requirements Planning, convert purchase requisitions to
purchase orders, receive the goods, receive the invoices, and post payment to the vendors. The
deliveries for these sales orders will be completed in the next unit.
Exercise 168: Create Item Proposal

Purpose of Exercise
The purpose of this exercise is to allow for situations where a customer often places an order with the
same line items, an Item Proposal (order template) can be created with the standard line items and
quantities already filled in. You can then pull the standard items in as you create the sales order by
referencing the Item Proposal. Once referenced and pulled into the order quantities can be changed,
line items can be deleted or added.
Navigation
Menu Path
Logistics → Sales and Distribution → Master Data → Products →
Item Proposal → Create
Trans Code

¾ Item Proposal Type PV
Organizational Data
¾ Division 01
¾ (Enter)
¾ Item proposal leave blank
¾ Description SAP Promotion Set
¾ Valid-from date Today’s date
¾ Valid-to date One year from today
¾ Enter the following materials and quantities:
BPEN_ _ _ 100
CPEN_ _ _ 75
PPEN_ _ _ 25
BOX_ _ _ 100
¾ (Enter)
¾ (Save)
¾ Record the Item Proposal Number: _____________________

Message
Exercise 169: Assign Item Proposal to Customer

Purpose of Exercise
In this exercise you will now assign that item proposal to the customer master. Whenever you ask for
an Item Proposal in a sales order for that customer, the system will default this Item Proposal.
Navigation
Menu Path
Customer → Change → Complete
Trans Code

¾ Customer SAP America
Sales area
¾ Division 01
¾ (Enter)
¾ Select
Sales TAB
¾ Item proposal # of the newly created item proposal.
¾ (Save)

Message
Exercise 170: Create Sales Order Using Item Proposal

Purpose of Exercise
This exercise will have you create a sales order using the item proposal we created and assigned to
SAP, America. We will use the materials and quantities in the item proposal.
Navigation
Menu Path
Trans Code
¾ Order type OR
Organizational Data
¾ Division 01
¾ (Enter)
¾ Sold-to party Customer # for SAP, America
¾ Ship-to party Leave Blank
¾ PO Number 170-_ _ _
¾ (Enter)
A pop-up window appears with the two “ship-to” addresses for this customer.
¾ Select SAP, America – UAP
¾ (Enter)
¾ Select: to search for your item proposal
In the pop-up window, the system copies the number of the product proposal for this customer
¾ Select
You may also need to select the delivery you wish:

• One-time del. On req. del. dte.
• Complete delivery
• Dely proposal
¾ Select (Copy) for a Complete delivery – Note: This may happen for multiple items.
Review the pricing options:

¾ Select the line item CPEN_ _ _
¾ Click and note the pricing ___________________________
¾ (Back)
¾ Select the line item PPEN_ _ _
¾ Click and note the pricing ____________________________
¾ (Back)
¾ Select the line item BPEN_ _ _

¾ Click and note the pricing ___________________________
¾ (Back)
Does the material pricing include the special customer pricing that was established for SAP, United
Kingdom? ________________________________________________________________________
¾ Record the Sales Order Net Value: _________________________
¾ (Save)
¾ Record the Sales Order Number: _____________________________

Message
Exercise 171: Create Sales Order – Value Discount

Purpose of Exercise
This exercise will have you create a sales order that will demonstrate the discounts prices we
established for Promotional Products, Inc.
Navigation
Menu Path
Trans Code
¾ Order type OR
Organizational Data
¾ Distribution channel WH
¾ Division 01
¾ (Enter)
¾ Sold-to party Customer # for Promotional Products, Inc
¾ PO Number 171-_ _ _
¾ (Enter)
Sales TAB
¾ Req. deliv. date 3 days from today

Material QTY
BPEN_ _ 1000
CPEN _ _ _ 550
PPEN _ _ _ 275
BOX _ _ _ 825
¾ (Enter)
You will need to select the delivery you wish:

• One-time del. On req. del. dte.
• Complete delivery
• Dely proposal
¾ Select (Copy) for a Complete delivery
You will receive one or more warnings that credit limit is exceeded – Note: This is only an information
message or warning; as such you will be able to continue processing the order.
¾ Select the line item CPEN_ _ _

¾ Click and note the pricing and discount
¾ (Back)

Review
The material pricing includes the 5% discount from the customer-specific material pricing record for
>$1,000 and <$2,000 and the 8% discount for items with an extended value of >$2,000 and <$3,000 and
the 10% discount for items with an extended value of >$3,000.
¾ Change the quantity of the line item for PPEN_ _ _ from 275 to 420 and verify that the discount
changed.

¾ (Back)
¾ Record the Sales Order Net Value: ______________________________
¾ (Save)
¾ Record the Sales Order Number: ______________________________

Message
Exercise 172: Run Material Requirements Planning – Single Item,

Single Level
Purpose of Exercise
The purpose of this exercise is to have the system plan all MRP relevant materials.
Navigation
Menu Path
Logistics → Materials Management →Material Requirements Planning (MRP) →
MRP → Planning → Total Planning → Online
Trans Code

¾ Scope of planning Leave Blank
¾ Plant P_ _ _
¾ Processing key NETCH
¾ Create purchase req 2
¾ Schedule lines 3
¾ Create MRP list 1
¾ Planning mode 1
¾ Scheduling 1
Display results before they are saved
¾ Select Display material list
¾ (Enter)

¾ An information message appears indicating you will need to press enter to start the planning run.
¾ (Continue)
¾ To review the MRP list select

¾ Press (Enter)
¾ Review the MRP list for PPEN_ _ _
Note that there may be multiple requisitions for each material due to different requirement dates.
¾ Review MRP list for BPEN_ _ _ ; CPEN_ _ _ ; PPEN_ _ _; and BOX_ _ _
BPEN_ _ _ CPEN_ _ _ PPEN_ _ _ BOX_ _ _

Total for all Requisitions

Message
Exercise 173: Create Purchasing Information Record for PPEN

Purpose of Exercise
The purpose of this exercise is to create purchasing information records for PPEN_ _ _. A purchasing
information record creates a link between a material and a vendor.
Navigation
Menu Path
Logistics → Materials Management →Purchasing → Master Data →
Info Record → Create
Trans Code

¾ Vendor Vendor # for Slick Pens
¾ Purchasing Org. P_ _ _
¾ Plant P_ _ _
¾ (Enter)
Enter the following information on the Create Info Record: Purch. Organization Data 1 screen
¾ Standard Qty.: 1
¾ Net Price: 3.25
¾ (Enter)
¾ (Save)

Message
Exercise 174: Assign Source of Supply to Purchase Requisitions

Purpose of Exercise
The purpose of this exercise is to assign a source of supply for your purchase requisitions.
Navigation
Menu Path
MRP → Evaluations → Stock/Requirements List
Trans Code MD04

¾ Material: PPEN_ _ _
¾ Plant: P_ _ _
¾ (Enter)
¾ Select a requisition (if more than one – select the one with the largest quantity)
¾ (Detail of element)
¾ (Change element)
¾ Enter the Storage Location 10
Item section
Source of Supply Tab
¾ This provides a list of possible sources of supply. Select Slick Pens _ _ _ by clicking in the Assign
Source of Supply box next to the vendor number. There should be a green dot next to the vendor
number after you have assigned the source of supply (see below).
¾ (Save)
¾ Assign Slick Pens as the Source of Supply for to largest requisitions for BPEN_ _ _ ; CPEN_ _ _ ;
and BOX_ _ _ in the same manner as you have just completed for PPEN_ _ _.
Message
Exercise 175: Create Purchase Order via Requisition Assignment List

Purpose of Exercise
The purpose of this exercise is to create a purchase order using a requisition assignment list. Since
you have assigned a source of supply to your requisition in the previous exercise, you can now convert
these purchase requisitions into a single purchase order as they are all assigned to the same vendor.
Navigation
Menu Path
Create → Via Requisition Assignment List
Trans Code ME58

¾ Vendor Vendor # for Slick Pens
¾ Plant P_ _ _
¾ (Execute)
¾ Select the line showing the number of purchase orders (there should be 4)
¾ Click on the button
Verify the following:

¾ Order Type NB
¾ Purchase Order Date Today’s Date
¾ Purchase Order Leave Blank
¾ Purchasing Group ___
¾ (Continue)
¾ Single-Click on Open Requisitions line in the left window (see below)
¾ Then Select (Adopt)

¾ Enter through warning if delivery date can’t be met and the existence of a contract.
¾ Verify the details of the purchase order
¾ Increase the PO Amount for each item by 150 over the total of all requisitions recorded when you ran
MRP online.
¾ Record the amounts for the individual lines items as well as the total order in the table below
Item Number Ordered Dollar Amount
PPEN _ _ _
CPEN _ _ _
BPEN _ _ _
BOX _ _ _
Total for PO
¾ (Save)
¾ Record the new purchase order number._____________________
¾ (Exit )

Message
Exercise 176: Create Goods Receipt

Purpose of Exercise
This exercise has you receive the pens that have arrived at your receiving dock and are ready to be
received into inventory.
Navigation
Menu Path
Trans Code

¾ Purchase Order 4500000???
¾ (Execute)
¾ Verify storage location was entered 10 (Inventory)
Notice that the quantity from the PO defaults as the quantity to receive.
¾ Select or (Save)
¾ Record the Material Document Number: _______________________
¾ View the material document by changing the transaction from Goods Receipt to Display. This will
bring up your material document.
¾ (Execute)
¾ You should see your material document – record the movement type: _____________
Doc. info Tab
¾ Select to view the financial document

¾ Record the Financial Accounting Document Number: _______________________
¾ Record the name of the two G/L accounts posted to in this transaction:
_________________________________ _________________________________

Message
Exercise 177: Create Invoice Receipt from Vendor

Purpose of Exercise
This exercise has you enter the Vendors invoiced for the items ordered.
Navigation
Menu Path
Trans Code
Basic data Tab

¾ Currency (behind amount) USD
¾ Purchase Order (Your Purchase Order #)
¾ (Enter)
¾ Amount Enter amount from Exercise 175
¾ Tax code XI (This should come in automatically – if not, enter it)
¾ (Enter)
¾ (Post)
¾ Record the Document Number: _________________________

Message

Purpose of Exercise
The purpose of this exercise is to post payment to the vendor. The invoice is now due for payment.
You are requested to clear the invoice by posting an outgoing payment using the bank account (no.
1000_ _) of your chart of accounts.
Navigation
Menu Path
Outgoing Payment→ Post
Trans Code

Bank data
¾ Amount Enter the amount of the outgoing payment
¾ Text Invoice Number or other text
¾ Account Vendor # for Slick Pens
¾ Select
¾ Review the “Not assigned” balance, ensure that it equals zero.
¾ (Post)
¾ Record the Accounting Document Number: __________________________

Message
Unit 22:
Purpose of Unit
The purpose of Unit 22 is to look at the functionality of delivery and billing due lists. Delivery and billing
due list provide you the opportunity to create your deliveries and billings collectively, rather than one at
a time.
Exercise 179: Run Delivery Due List

Purpose of Exercise
The purpose of this exercise is to have you run a delivery due list. In normal daily operation, creating
delivery notes for each individual sales order is the exception rather than the rule. In most companies,
the shipping department would run the delivery due list, which, creates delivery notes for any material
with deliverable items.
Items which are due for delivery are defined by the following parameters:
• Material is available and scheduled
• The date of due delivery has arrived
• Material is delivered for the chosen shipping point (determined from shipping point
determination)
Navigation
Menu Path
Outbound Delivery → Create →
Collective Processing of Documents Due for Delivery → Sales Orders
Trans Code

¾ Shipping Point/Receiving Pt S_ _ _
¾ Deliv. Creation Date Enter dates from one week ago to 14 days from today
General data TAB:
¾ (Execute)
¾ Select the desired line(s)
¾ Select In some cases, the system has combined deliveries from different orders on the
same delivery note number. This is set in the customer master, by selecting Order combination.
¾ (Save)
Record the delivery note document numbers: _____________________ ______________________

Message
Exercise 180: Pick Materials on Delivery Note

Purpose of Exercise
In this exercise you will update the delivery documents created by entering the picked quantities into
the delivery note. When saved, the delivery has changed to a picked status.
Navigation
Menu Path
Trans Code

¾ Enter a delivery note number from the previous exercise.
¾ (Enter)
Picking TAB:
¾ Select the storage location for the individual materials.
¾ Enter the Picked quantity (it should be the same as the Delivery quantity for each material).
¾ (Enter)
¾ (Save)
Repeat for all outbound deliveries created in the previous exercise.

Message

Purpose of Exercise
This exercise will have you create the post goods issue which reduces unrestricted stock to reflect the
inventory has shipped. This needs to be completed for all delivery notes.
Navigation
Menu Path
Trans Code

¾ Select
Repeat for all outbound deliveries you processed in the previous exercise.

Message
Exercise 182: Run Billing Due List, Invoice Customers

Purpose of Exercise
This exercise introduces you to the concept of collective billing. The Billing due list is a collective
display of all bills due in a specified period of time. This allows you to then individually or collectively
create all the invoices.
Navigation
Menu Path
Logistics → Sales and Distribution → Billing → Billing Document →
Process Billing Due List
Trans Code

Billing Data
¾ Billing Date from a week ago
¾ Billing to date today’s date is defaulted as the “to” date
¾ Billing Type leave blank
¾ SD Document leave blank
Selection Tab
Organizat. Data
¾ Sales organization S_ _ _
Documents to be selected
¾ Select Order-related
¾ Select Delivery-related
¾ Click
¾
The system lists all the documents (Delivery numbers) due for invoicing
Now we complete the invoices as follows:
¾ Highlight an individual SD document number

¾ Click on
¾ (Save)
¾ Record Billing Document Number: ________________________
¾ (Back)
¾ The next delivery note should be on the Create Billing Document Screen
¾ (Execute)
¾ (Save)
¾ Record Billing Document Number: ________________________

Message

Purpose of Exercise
This exercise will have you go through and post receipt of payment from all of our customers for all the
orders you have created to date. You post the incoming payment to the customer's account.
Navigation
Menu Path
Trans Code

¾ Company Code C___
¾ Currency/Rate USD
Bank data
¾ Account Your Bank Account
¾ Amount Enter the amount of the payment
Open item selection
¾ Account Customer Number
¾ Select
Note: The “not assigned” amount should be 0.00
¾ (Save)
¾ This process will need to be repeated for both customers for which you created invoices.

Message
Unit 23:
Purpose of Unit
The purpose of Unit 23 is to introduce you to the return process. In this unit you will create a goods
return order, receive the goods, and complete the process by transferring them back into unrestricted
stock, issuing a credit and pay the customer for the goods they returned.
Exercise 184: Create Goods Return Order

Purpose of Exercise
In this exercise you will create a return for fifty (50) Barrel Pens due to a quantity discrepancy. The
process of creating a goods return order is no different from that of creating a standard sales order.
Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Order → Change
Trans Code

¾ Order Order # from Promotion Products, Inc
¾ (Enter)
¾ Acknowledge Information pop-up window: “Consider the subsequent documents”
System Menu: Sales Document → Create subsequent order
¾ Order type RE
Organizational Data
¾ Division 01
¾ Select
¾ Select
¾ (Deselect All)
¾ Select Material BPEN_ _ _
¾ Change Open Quantity 50
¾ Select This will return you to the Create Returns Overview Screen
Sales Tab
¾ Order reason Quantity Discrepancy
Verify
¾ Quantity 50
¾ Record the Return Order Net Value $________________________
¾ (Save)
¾ Record Return Order Number __________________

Message
Exercise 185: Create Delivery Note for Return Order

Purpose of Exercise
This exercise will have you create the goods receipt for the returned pens. The menu path for a goods
receipt of a return order is no different from that of a delivery creation for sales order. A goods receipt
is issued for blocked (inspection) stock.
Promotional Products, Inc. – Return Merchandise Authorization
RMA–1234
Reason for rejection: Quantity Discrepancy
ITEMS: BPEN_ _ _ QUANTITY: 50
Navigation
Menu Path
Logistics → Sales and Distribution → Sales → Order → Subsequent Functions →
Outbound Delivery
Trans Code

¾ Shipping point S_ _ _
Sales order data
¾ Selection date Today + 2 days
¾ Order Returns order number from previous exercise
¾ (Enter)
¾ Check the material, customer etc.
¾ If correct (Save)
¾ Record the Returns Delivery number: __________________________

Message
Exercise 186: Receive Materials from Goods Return Order

Purpose of Exercise
The purpose of this exercise is to pick the goods and post goods issue.
Navigation
Menu Path
Trans Code

¾ Outbound Delivery Enter the delivery note number from your Return Order
¾ (Enter)
Picking Tab
¾ Enter the storage location: 10 (Inventory)
¾ Select
¾ System should respond with message indicating that the Returns Delivery has been saved.

Message
Exercise 187: Check Document Flow

Purpose of Exercise
This exercise will have you review the document flow up to this point in the return process.
Navigation
Menu Path
Trans Code

¾ Document Return Order Number
System Menu: Environment → Display document flow
¾ Display the GD document
A material document is displayed showing a single goods movement. We see that movement type 651 is
displayed. Since we haven’t accepted ownership yet, there are no accounting documents. Movement
type 651 moves material into a “Returns” stock type.

Message
Exercise 188: Review the Stock Overview

Purpose of Exercise
This exercise will have you look at the stock overview and record the types of BPEN_ _ _ stock.
Navigation
Menu Path
Trans Code

Database selections
¾ Plant P_ _ _
¾ Storage location Leave Blank
¾ (Execute)
¾ Select
selected.
¾ Check the returns quantity (Returns) stock type
Plant BPEN_ _ _
Storage Location
Stock Type Quantity
Unrestricted Use
Returns
Sales Orders
Exercise 189: Transfer Return Stock to Unrestricted Use

Purpose of Exercise
The purpose of this exercise is to transfer the returned goods to unrestricted stock. The movement
results in a debit to the trading goods account and a credit to the COGS account.
Navigation
Menu Path
Goods Movement → Transfer Posting
Trans Code
System Menu: Movement Type → Transfer Posting → Stock to Stock → Own from Returns

Defaults for Document Items
¾ Movement type 453 is defaulted
¾ Plant P_ _ _
¾ Storage Location 10
¾ (Enter)
Items
¾ Quantity 50
¾ UnE (Unit of Entry) EA
¾ (Enter)
¾ (Save)
¾ Record the material document number _____________________
¾ Display the material and accounting documents.

¾ Re-check the stock status of the material to confirm the “return” stock has been transferred to
unrestricted stock

Message
Exercise 190: Post Customer Credit

Purpose of Exercise
This exercise will have you prepare to issue a credit, the Billing block must be removed from the
Return’s sales order to proceed with issuing the credit.
Navigation
Menu Path
Trans Code

¾ Order: Return sales order number
¾ (Enter)
¾ Acknowledge Information pop-up window: “Consider the subsequent documents.”
¾ Delete the entry in the field “Billing block”
¾ (Save)

Message
Exercise 191: Create a Billing Document

Purpose of Exercise
The purpose of this exercise is to create the account payable to the customer for the returned goods.
Navigation
Menu Path
Trans Code

¾ Document Return order number
¾ (Enter)
¾ Record the total amount billed to the customer. $____________________
¾ (Save)
¾ Record the billing document number: __________________________

Message
Exercise 192: Release Billing Document to Accounting

Purpose of Exercise
The purpose of this exercise is to release the billing document to accounting. Before the billing
document can be processed, Sales must release it to Accounting. All credits are automatically blocked
for processing so that they may be reviewed prior to being released to Accounting for payment.
Navigation
Menu Path
Logistics → Sales and Distribution → Billing → Billing Document → Change
Trans Code

¾ Billing document Billing Document number
System Menu: Billing Document → Release To Accounting

Message

Purpose of Exercise
This exercise will have you review the document flow up to this point in the return process.
Navigation
Menu Path
Trans Code

Review the accounting document created by billing
Exercise 194: Post Payment to the Customer – Refund

Purpose of Exercise
This exercise will have you post a payment to your customer. Now that they have received the invoice
with the credit you will need to send them a payment. The payment will be reflected in their account.
Navigation
Menu Path
Document Entry → Other → Outgoing Payments
Trans Code

¾ Currency/Rate USD
Bank data
¾ Account G/L account for your Bank (Checking Account)
¾ Amount Enter the amount of the payment (from sales order)
Open item selection
¾ Account Customer # for Promotional Products, Inc.
¾ Select
Note: The “not assigned” amount should be 0.00
¾ (Save)

Message

Purpose of Exercise
This exercise will have you review the document flow now that the process is complete.
Navigation
Menu Path
Trans Code

Review the accounting document – has it been cleared.

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What is the purpose of the course?

What is the purpose of the course?

What are the main components of SAP R/3?

What are the main components of SAP R/3?

BPI - I Student Book

Business Process Integration - I

rgThe Rushmore Group, LLC

January 2008 © SAP AG and The Rushmore Group, LLC 2008 2

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© SAP AG and The Rushmore Group, LLC 2008 1

• Business Process Integration Slides

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© SAP AG and The Rushmore Group, LLC 2008 2

• Systems, Applications, and Products in Data

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• Founded in Germany (1972)

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© SAP AG and The Rushmore Group, LLC 2008 3

• Enables a company to link it’s business processes

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Integrated Business Solutions

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• Central relational database (e.g., Oracle,

© SAP AG and The Rushmore Group, LLC 2008 4

• Tables: Defines and links thousands of tables of

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Three-Tier SAP Structure

• GUI – Graphical User Interface or Web

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© SAP AG and The Rushmore Group, LLC 2008 5

SAP Enterprise System

PCs, Laptops, etc.

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mySAP Business Suite

mySAP mySAP mySAP

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mySAP ERP Modules

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© SAP AG and The Rushmore Group, LLC 2008 6

• Collections of logically related transactions

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SAP R/3 Basics

• Instance – each install of the SAP R/3 software

• Configurable – each instance can be

• Most of the infrastructure decisions, including

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• The process of tailoring SAP software by

• DOES NOT involve changes to the underlying

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© SAP AG and The Rushmore Group, LLC 2008 7

Programming Code Modifications

• Changes to the delivered code

• ABAP/4 – Advanced Business Application

• This should be done sparingly and carefully as it

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SAP R/3 Document Principle