SAP SD Sales Document Types

While going through the tutorials of Quotation, Contract, and Sales

Order creation you must have met the term of a ‘Document Type’. SAP SD Sales
Document types in SAP have a specific functionality and performs different functions. If
we talk about Sales Documents in Sales & Distribution, you can find different document
types at every stage of sales cycle/processing. By using different document types you
can control which information is required at each step of a business process and make
sure that users follow the required procedures for processing of sales documents. Sales
document types also enable you to define how SAP copies data from one document to
the next document in the business process chain.

For instance, all the following sales documents have their specific document types:

 Inquiry
 Quotation
 Contract
 Value Contract
 Quantity Contract
 Scheduling Agreements
 Sales Order
 Delivery Document
 Billing Document

SAP SD Sales Document Types and their Functionality

In SAP, standard SAP SD Sales Document types are available for
recording Inquiry, Quotation, Contract, Scheduling Agreement, Sales Order, Delivery
Document and Billing Document. Each document type has its own functionality and
business logic.

Here are examples of standard SAP SD sales document types:

 IN – Inquiry
 QT – Quotation
 OR – Standard Order
 RE – Returns Order
 CR – Credit Memo Request
 DR – Debit Memo Request
 LF – Outbound Delivery Document
 LR – Returns Delivery
  F2 – Sales Invoice
 G2 – Credit Memo
 L2 – Debit Memo

Reasons for Having Different Document Types

In standard SAP, the functionality of having different document types serve
various purposes. If you want to record sales of specific line of business due to its
uniqueness in nature, you have the option to create a separate document type for it. If
you want a specific sales document to have independent number range from other sales
document types, that requirement can be served with different sales document types
sharing different or same number range(s).

For instance, if you are selling to your regular customer like distributor or dealer, it is not
necessary that he will raise Purchase Order on a regular basis. Since he is your agent,
distributor or dealer, he is responsible for selling your product further to the end consumer
or secondary customer. In this case, you can configure your document type in such
manner that data entry is minimal at sales order level to make sure that processing of
sales is swift.

Another example, you have an institutional or government customer who raise a proper
Purchase Order with specific terms and conditions which the vendor or supplier (in this
case you) must abide before every purchase, else your customer would not accept goods.
In such case, you can have a specific order type created for such line of business where
entering Purchase Order number and date are required and other terms are met strictly
so that customer accept goods and your efforts are not in vain.

These are just the examples and creating document types strictly depends on the Client’s
business requirement and business processes.

One advantage of having different document types is easy execution of reports. If we take
above examples and you wish to see the sales to distributors or dealers, you will select
the specific document type, select the duration of sales made to dealers and distributors
and the system will display sales made to distributors or dealers specifically.

Sales Order Document Types

In standard SAP SD, there are many Sales Order Types having their own functionality to
represent the different business processes. Following broadly are the standard sales
order document types:

 Standard Order
  Contract
 Cash Sales
 Rush Order
 Free of Charge Delivery
 Returns
 Consignment Order
 Credit Memo Request
 Debit Memo Request

If you are working with either of the above mentioned document types, you can see
different screen sequences. For instance, in Inquiry, Quotation and Contract there are
validity dates. The reason for this is that Quotation is a legal document where you confirm
your customer that you commit to offer a product on such price within a stipulated
period. The same is in the case of Contract. You and your customer have agreed on
certain terms of long term relationship. Where, after mutual understanding, you have
agreed to supply a specific product to your customer within the time frame mentioned on
the contract.

Returns are sales documents where a customer has returned your goods due to any
reason. Be it a quality issue or damages or wrong product was dispatched, etc. Returns
document can be created both with a reference to the original order or without a reference.

Consignment order is one where you have placed your product at a customer’s premises
and the customer asks to sell or dispatch them when he needs it. There are four different
document types associated with consignment processing having their own functionality.

Customizing SAP SD Sales Order Types

In SAP, you can customize the standard Sales Document Types as per your needs and
business requirements. But one thing you must take care of while customizing the
document types in SAP is to follow the best practice of copying the standard document
type which you want to customize, tailor it as per business needs and requirements,
rename it with your own naming convention starting from either ‘Y’ or ‘Z’, then ‘save’ it
and use accordingly.

To access the customization screen/transaction of Sales Document Types at backend

you can either go to it directly via transaction code VOV8:

Start VOV8 Transaction

or type SPRO in the transaction bar then either press F5 or button:

Start SPRO Transaction

Click SAP Reference IMG Button

Then, you need to navigate to the following menu item: Sales and Distribution > Sales >
Sales Documents > Header > Define Sales Document Types:
Sales and Distribution > Sales > Sales Documents > Header > Define Sales Document Types

List of SAP SD Sales Order Types

Below is the screenshot of customizing screen of the standard sales order type ‘OR’:
Sales Document Type “OR”

Incompletion Log
An incompleteness log is a mechanism to maintain and verify a list of all the essential
information or fields in a sales document that may be required by the business at the
time of order entry. It helps to make sure that the SAP system will not allow to save a
document if some of the required fields are not entered in the system. You can define
these required data fields to be populated at the time of sales order processing in
customizing for the incompletion procedure. You can customize incompletion log and
assign it to your customized document type.

For example, in the standard incompletion log for a sales order type “OR”, the system
prompts for Purchase Order number to be entered. In our example of carrying out sales
to a distributor or a dealer, you can customize the incompletion log with no PO number
required setting and assign it to your customized SAP SD Sales Document types for
recording sales to a dealer or a distributor.

We continue our free SAP SD course and go deeper to understanding of customization

of the standard behavior of SAP ERP system related to Sales and Distribution business
processes. In this tutorial, we are going to speak about SAP SD Item Categories. SAP
SD Item Categories is an important concept is performing customizations for SAP SD
module. It is difficult to describe all the properties of item categories in a single tutorial,
because they control different aspects of sales processes and it makes more sense to
study them in further tutorials related to specific business processes. Here we will just get
started with understanding item categories and accessing their customizing.

As you already know from the previous tutorials about sales orders in SAP Sales and
Distribution, these documents consist of the following elements:

 Header of a sales order containing customer’s information

 Items where the materials to be sold are maintained
 Schedule Lines confirming whether the material will be made available for sales on
the required date of delivery which the customer asked for based on the settings at
SAP backend

Like different sales document types, SAP SD Item Categories have their own
functionality. When you enter a material to be sold, an item category for this material is
populated after being identified based on certain criteria. Item Categories are a crucial
part of sales orders and sales processes. They are responsible to control the behavior of
items in a sales order. SAP SD Item Categories are assigned to SAP SD sales document
types.

Item category is populated based on the:

 Sales document type selected for an order entry

 Item Category Group defined in the Material Master of the Finished Product to be
sold

The item category group allows you to group together different materials that behave in
a similar way during sales and distribution processes. Different Item Categories are
determined with respect to the following sales document types:

 Inquiry
 Quotation
 Contract
 Value Contract
 Quantity Contract
  Scheduling Agreements
 Sales Order
 Delivery Document

SAP SD Item Categories and Their Functionality

Item Categories in Sales Orders

In SAP, standard item categories are available for line item while creating an inquiry,
quotation, contract, scheduling agreement, sales order. Each item category has its own
functionality and processing.

For example, in an inquiry, you are just recording the customer’s call received for inquiring
about certain products. It can have pricing which you offer to your regular customers but
since it is just an inquiry it does not need to and cannot be delivered and billed.

A sales order is an actual commitment with your customer to deliver the agreed product
at a certain date. Hence, sales order item category is relevant for pricing, delivery and
billing. If some material in the sales order is a free good or discounted material offer to a
customer against purchase of certain quantity of goods, than its line item category will be
relevant for 100% discount.

Examples of functionality which SAP SD item categories perform are:

 If the item is relevant for pricing

 If the item is standard or a free good given as free
 If the item is relevant for delivery. E.g., if you are selling a finished product which was
either procured and then sold (in case of trading process) or produced and then sold
(in case of manufacturing process), the product will be delivered physically because it
is tangible.
 Sales of service is a bit different. In sales of service you do not deliver something
which is tangible. However, it is the experience which you deliver but in system no
delivery can be created since it is not tangible.

Examples of standard sales document types and their associated item categories are:

 AFN – IN – Inquiry
 AGN – QT – Quotation
 KMN – Quantity Contract
 TAN – OR – Standard Order
 TANN: Free Item
 TATX: Text Item in Order
 BVN – CS – Cash Sales
  REN – RE – Returns Order
 G2N – CMR – Credit Memo
 L2N – DMR – Debit Memo

Item Categories in Deliveries

The delivery item category checks how the item to be delivered will be handled during
the shipping process. Whether the system should check:

 If the item is relevant for delivery

 If the minimum quantity criteria are met
 If the over delivery is prompted at the time of delivery when trying to deliver over and
above the sales order quantity
 If the material is relevant for picking or not
 If the storage location is required and mandatory
 Etc.

Customizing SAP SD Item Categories

SAP SD item categories can be customized as per your business requirements and
scenarios at hand. To do this, you should always follow and abide the best practice by
first copying a standard item category which is near to your requirements, then
customize it as per the business needs and rename it with your own naming convention
starting from either ‘Y’ or ‘Z’ letters.

To access the customizing for item categories of sales orders at the backend in the SAP
system, you can either use transaction VOV7 in the transaction bar to reach to that area
directly:

Start VOV7 Transaction

or type SPRO in the transaction bar:

Start SPRO Transaction

Then either press F5 or in the next screen:

Click SAP Reference IMG

Once you are in customizing, to access Sales Order Item Categories follow this menu
path:

Sales and Distribution > Sales > Sales Documents > Sales Document Item >
Define Item Categories
Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Categories
Maintain Item Categories

Below is a screenshot of a customizing screen for the standard item category TAN that
by default assigned to the standard sales order type OR:
TAN Item Category

To access Delivery Item Categories, either enter 0VLP in the transaction bar:

Start 0VLP Transaction

Or follow this menu path after if you wish to access it by entering SPRO in the
transaction bar:
 Start SPRO Transaction

Press F5 from keyboard or press button

Click SAP Reference IMG

Then, navigate to the following item in the SAP customizing menu: Logistics
Execution > Shipping > Deliveries > Define Item Categories for Deliveries
Logistics Execution > Shipping > Deliveries > Define Item Categories for Deliveries
Delivery Item Categories

Below is a screenshot of a customizing screen of the standard item category TAN that
by default assigned to the delivery type LF.
SAP SD sales document consists of three levels; header, items, and schedule lines.
SAP SD schedule line for each item carries important information like delivery date,
confirmed quantity, and delivered quantity. While SAP SD schedule line carries
information of dates and quantities, SAP SD schedule line categories are used to
determine whether each line item relevant for further processing (i.e., planning process).

Moreover, SAP SD schedule line categories will control several aspects:

1. Whether an item is relevant for delivery.

2. Will an availability check be performed for an item.
 3. Which movement type will be used during goods issue / goods receipt in the delivery
process.
4. Whether the material is procured externally (by using third party processing).

If you go to the schedule line details, you will find SAP SD schedule line categories
assigned to each item.

Most of Sales Order Types Use

SAP SD Schedule Line Category “CP”

Click on the Shipping tab. The dates there are determined according to SAP SD
schedule line categories configuration.
 SAP
SD Schedule Line Categories Determine Dates on Shipping Tab

SAP SD schedule line categories are identified by two alphanumeric characters as

explained in the table below. Each character for SAP SD schedule line categories
carries different meaning.

First character Meaning

A Inquiry

B Quotation

C Order
D Returns

Second character Meaning

T No inventory management and without goods issue

N No MRP

X No inventory management but with goods issue

V Consumption Based Planning / MRP

P MRP related

Schedule Line Category Functionality

The schedule line category in inquiry is used for information only; it carries
AT
no availability check nor relevant for delivery

The quotation will not perform the availability check and MRP nor it relevant
BN
for delivery

The requirement will be transferred; the availability check is active; it is

CP
relevant for delivery; and it has movement type 601
 There is no availability check and MRP active; However the requirement
CV
will be transferred for analysis purpose

This schedule line exclusively used for return document; it will perform
DN
Posting Goods Receipt with movement type 651

There are numerous SAP SD schedule line categories in the standard SAP ERP. I list
some of them which most transactions use as shown in the table below.

Later in this document you will learn that SAP SD schedule line category is assigned to
the combination of SAP SD item category and MRP type. The detailed discussion
regarding these two separate objects will not be covered in this document.

Define SAP SD Schedule Line Categories

To meet your business requirement, you can create custom SAP SD schedule line
categories. In this document, I am going explain the steps you should perform to
achieve it. It is recommended to create a new category by copying it from the standard
with minor adjustments.

Step 1

Go to transaction VOV6 (or with the menu path SPRO – Sales and Distribution – Sales
– Sales Documents – Schedule Lines – Define Schedule Line Categories). Select one
of the categories. I’m using “CP” for the example here.
 List
of Standard SAP SD Schedule Line Categories

Step 2

Change the key and update the description.

Step 3

Look at the right side, there is a checkbox for “item relevant delivery”. This indicator
means that the item in a sales document will be relevant for delivery.

Step 4

You may want to change the goods movement type here. But I’m going to leave it with
601 movement type. This will allow the system to perform posting of goods issue.

Example of a Customized SAP SD Schedule Line Category

Step 5

Press Enter and a new pop up will be shown. It will ask you whether you want to copy
the copy control from the original schedule line category. Click “Yes” to proceed.
Step 6

Depending on your system-client type, you might be asked to create a new change
request.

A Confirmation Dialog Screen Asking for Copy Control Relevancy

Assign SAP SD Schedule Line Categories

SAP SD schedule line categories are automatically determined by the SAP system
based on item category and MRP type. The automatic determination works based on
the configuration that we are going to perform in the next steps.

Step 1

Run the transaction VOV5 (or with the menu path SPRO – Sales and Distribution –
Sales – Sales Documents – Schedule Lines – Define Schedule Line Categories).
Step 2

Find a standard combination of item category and MRP Type, and do the copy process.
Change to the customized pre-defined item category, then assign your new schedule
line category to the first white field (proposed schedule line category) as the first priority.

You may also add other categories to the manual schedule line category fields. By
doing this, you are allow manual updates of SAP SD schedule line categories during
execution of transactions. You will find that you are able to enter up to nine SAP SD
schedule line categories.

Create New
Assignment by Copying the Standard One
Assignment of the Main Schedule Line Category is Crucial Here

Step 3

Now click Save button.

A New Assignment will be Created

Example – Schedule Line Category CS
In third party sales processing, a sales order will trigger automatic creation of purchase
requisition which is resulted from the special schedule line category CS. In the standard
SAP configuration, CS is specifically assigned to TAS item category without MRP type.
However, the standard CS is not relevant for delivery. Hence, it will not have a
movement type.

If you have a business requirement where the externally procured goods is received
and delivered to the customer from our premise, you need a slight adjustment.

1. Create a new schedule line category by copying the standard “CS”.

Using
Standard Schedule Line Category is Preferable
2. Rename it, enter the goods movement type (601).

3. Enter the order type (purchase requisition type).

4. Change the item category to standard (0).

5. Change the account assignment group to M.

6. Check the relevance for delivery and purchase requisition delivery scheduling. It will
determine arrival of goods to our plant.

Different Fields that You May Customize

7. Click Save button.

8. Assign the new schedule line category to the item category in transaction VOV5.

Notice the MRP

Type is Blank for the New Assignment

9. Then save the assignment.

10. You can test the transaction by calling the designated item category and it will
trigger a new screen for creation of a purchase requisition.

A
Screen for Creation of Purchase Requisition will Appear
11. Click Save and open the new document. Go to the schedule line tab in item details.
You will find that a new purchase requisition number has been created.

New Purchase Requisition will be Created for Third Party Sales Order

SAP sales organization is one of the fundamental organizational units of SAP ERP that
enable to map a real-life enterprise structure to the SAP representation of a company. In
this tutorial, we will learn what is SAP sales organization, how to define a new sales
organization, and how to perform assignment of a sales organization to a company code.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.

Sales Organization in SAP Sales & Distribution module is the highest level in
organizational structure and is primarily responsible for carrying out and monitoring sales.
Sales Organization is responsible for devising sales strategies which are to be executed
to gain market share.
If there are any Customer’s complaints regarding the goods and services which the
company primarily is responsible for, all such queries and complaint handling is done at
Sales Organization level. A Sales Organization is assigned to a unique Company Code.
If the business is of such nature, one or more Sales Organizations can be created and
assigned to a Company Code. A sales organization cannot be assigned to multiple
company codes at the same time.

All the sales reporting is accumulated at Sales Organization level. Reporting is carried
out by Sales Organization. If you want to see sales performance of one sector your
business, you will select the Sales Organization and all the sales pertaining to the select
Sales Organization will be displayed.

All Sales and Distribution documents are assigned to a single Sales Organization. In SAP
SD, if you want to use the said module, at least one Sales Organization is a must.

How to Create SAP Sales Organization?

I am sure you have gone through the tutorial SAP SD Organizational Structure available
in tutorials section. This tutorial will help you in learning the steps about configuration
done in SAP customizing and how the SAP Sales & Distribution Organizational
structure is configured during Realization Phase finalized in the Business Blueprint
Phase.

There are two steps in Organizational Structure configuration:

 Definition: this is the first step in organizational structure configuration where you
create and define the organizational structure with the ‘coding’ finalized in the
Business Blueprint Phase.
 Assignment: this is the second step in the organizational structure configuration
setup where you assign the configurable object created in the definition step to
another configurational object in the same or in another module(s). E.g., assigning a
Distribution Channel to a Sales Organization and / or assigning a Sales Organization
to a Company Code.

Define SAP Sales Organization

To Define the Sales Organization in the customizing of the SAP system you can either
type SPRO in the Transaction Bar:
 Sales Organization Configuration > Accessing Customizing

or use SAP Easy Access Menu Tree Menu Path: Tools > Customization > IMG > SPRO
– Execute Project.

Sales Organization Configuration > Accessing Customizing via Menu

Then either press F5 or in the next screen.

Click “SAP Reference IMG”
 SAP
Customizing Menu

Now, let’s define a new SAP sales organization by accessing the following menu path in
customizing: SPRO > Enterprise Structure > Definition > Sales and Distribution >
Define, copy, delete, check sales organization.
Sales Organization Configuration – Define Sales Organization

A dialog box will appear, in that either double click or place cursor on Define Sales
Organization and press button.
Sales Organization Configuration – Define Sales Organization Dialog

Define Sales Organization –

Existing Sales Organizations

In the standard SAP system, 0001 – Sales Org. 001 is available. It is a predefined sales
organization created by SAP. Here you have two options to create a new sales
organization:

 Either copy this 0001 – Sales Org. 001 and in this way all the necessary will be
copied. Rename it with your Sales Organization coding and make changes where
 necessary. This can be done by selecting 0001 – Sales Org. 001 and pressing F6 on

keyboard or button.

 Or opting for defining all values by yourself by pressing F5 on keyboard

or button.

We shall opt and proceed with the ‘Copying’ option since it assists in populating fields by
default. You can copy using the SAP’s available 0001 – Sales Organization 001 or use
other already created sales organizations which cater your requirement.

Sales Organization Configuration – Define Sales Organization > Copying

Rename it with your coding and description finalized in the Business Blueprint Phase.
 SAP
Sales Organization Configuration – Define Sales Organization > Customizing

Once you press enter, a pop up window will appear which requires you to enter
address, telephone, email, etc.
Sales Organization Configuration – Define Sales Organization > Customizing > Details

Sales Organization Configuration – Define Sales Organization > Finalizing

Press Ctrl+S or button to save the Sales Organization that you’ve just created.
Once you try to save, a pop up will appear containing ‘Customization Request’.
Sales Organization Configuration – Define Sales Organization > Saving Customization

Enter your description and note the Customizing Request Number for future reference.
Press Enter or button to continue and the SAP system will confirm that the data was
saved.

Assigning SAP Sales Organization

Now, the second step is to assign the sales organization created / defined in the first
step to the cross modular organizational structure object which is the company code as
finalized in the Business Blueprint document. The customizing menu path for this
activity: SPRO > Enterprise Structure > Assignment > Sales and Distribution > Assign
sales organization to company code.
Sales Organization Configuration – Assigning Sales Organization

Sales Organization Configuration – Assigning SAP Sales Organization to a Company Code (Picture 1)

Sales Organization Configuration – Assigning SAP Sales Organization to a Company Code (Picture 2)

Enter relevant company code against the Sales Organization to which you want to
assign.
Enter Company Code

Press Ctrl +S or button to save the assignment of Sales Organization to Company

Code and the system will pop up Customization Request. Based on desire either save it
with the previous request or create a new one depending on the Transport Request
methodology being followed at the project.

SAP Distribution Channel is one of the fundamental organizational units of SAP SD that
enable to map a real-life enterprise structure to the SAP representation of a company. In
this tutorial, we will learn what is SAP Distribution Channel, how to define a new
Distribution Channel, and how to perform assignment of a Distribution Channel to a sales
organization.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.

What is SAP Distribution Channel?

A Distribution Channel in simple terms refer to your strategy how you penetrate in the
market with you offering either product or a service or both. It is your mean how you would
like to reach to your customer or end consumer. Examples of a distribution channel can
be but not limited to: Sales to Wholesale Customers, Retail sales, Institutional sales,
Internet sales, Employee Sales, Fair Price Shop, etc.
Different categories of Customers can be reached through one or more SAP distribution
channels within a sales organization. To proceed with sales processing, at least one SAP
distribution channel is required.

How to Create SAP Distribution Channel?

I am sure you have gone through the tutorial SAP SD Organizational Structure available
in tutorials section. This tutorial will help you in learning the steps about configuration
done in SAP customizing and how the SAP Sales & Distribution Organizational structure
is configured during Realization Phase finalized in the Business Blueprint Phase.

There are two steps in Organizational Structure configuration:

 Definition: this is the first step in organizational structure configuration where you
create and define the organizational structure with the ‘coding’ finalized in the
Business Blueprint Phase.
 Assignment: this is the second step in the organizational structure configuration
setup where you assign the configurable object created in the definition step to
another configurational object in the same or in another module(s). E.g., assigning a
Distribution Channel to a Sales Organization and / or assigning a Sales Organization
to a Company Code.

Define SAP Distribution Channel

To define a Distribution Channel at the customizing of the SAP ERP system, you can
either type SPRO in the transaction bar:

Distribution Channel Configuration > Accessing Customizing

or the same can also be accessed through SAP Easy Access menu tree path: Tools >
Customization > IMG > SPRO – Execute Project.
Distribution Channel Configuration – Accessing SPRO

Then, either press F5 or in the next screen.

Distribution Channel Configuration – Click “SAP Reference IMG”

Now, let’s define a new SAP distribution channel by accessing the following menu path
in customizing:

SPRO > Enterprise Structure > Definition > Sales and Distribution > Define, copy,
delete, check distribution channel
Distribution Channel Configuration – Defining Distribution Channel

A dialog box will appear, in that either double click or place cursor on Define Distribution
Channel and press button.
“Choose Activity” Dialog Box

Distribution Channel Configuration – Defining Distribution Channel > New Entries

Press F5 on Keyboard or button.

Distribution Channel Configuration – Defining Distribution Channel > New Entries

Enter Distribution Channels with your codes and description finalized in the Business
Blueprint Phase.
New Entries for Distribution Channels

Press Ctrl+S or button to save the distribution channel(s) created. Once you try to
save, a pop up might appear containing a customizing request.

Distribution Channel
Configuration – Defining Distribution Channel > Saving Customization

Based on preference or requirements save it either with the previous request or create a
new one depending on the transport request methodology being followed at the SAP
project. Press Enter or button to continue and the SAP system will confirm that the
data was saved.

A New Distribution Channel(s) was Defined

Assigning SAP Distribution Channel

Now, the second step is to assign the distribution channel(s) created / defined at the first
step to a sales organization as it was finalized in the Business Blueprint document.

Go to the following menu path:

SPRO > Enterprise Structure > Assignment > Sales and Distribution > Assign
distribution channel to sales organization

Distribution Channel Configuration – Assigning a Distribution Channel

Distribution Channel Configuration – Assigning Distribution Channel > New Entries

Press F5 on the keyboard or button. Enter a sales organization and

distribution channel(s).
Distribution Channel Configuration – Assigning Distribution Channel > Two New Entries

Press Ctrl+S or button to save the assignment of distribution channels to a sales

organization and the system will popup a dialog box for a customizing request. Based
on your preferences, save it either with the previous request or create a new one
depending on the transport request methodology being followed at the project.

New Distribution Channels were Assigned

SAP SD division is one of the fundamental organizational units of SAP SD that enable to
map a real-life enterprise structure to the SAP representation of a company. In this
tutorial, we will learn what is SAP SD division, how to define a new division, and how to
perform assignment of a division to a sales organization.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.

What is SAP SD Division?

Division is used to group good and services of certain nature that share some common
traits or properties. It also serves and represents product lines of your business. When
executing sales business processes in SAP Sales and Distribution, at least one division
should be available in the SAP system. Materials that are sold to a customer must be
assigned to a division. For example, we can consider any automobile dealer company
that offers three types of services. Namely: sales (of cars, new or used), service, and
spare parts. These types of services can be grouped in SAP using SAP SD divisions.

How to Create SAP SD Division?

I am sure you have gone through the tutorial SAP SD Organizational Structure available
in the tutorials section. This tutorial will help you in learning the steps about configuration
done in SAP customizing and how the SAP Sales & Distribution Organizational structure
is configured during Realization Phase finalized in the Business Blueprint Phase.

There are two steps in Organizational Structure configuration:

 Definition: this is the first step in organizational structure configuration where you
create and define the organizational structure with the ‘coding’ finalized in the
Business Blueprint Phase.
 Assignment: this is the second step in the organizational structure configuration
setup where you assign the configurable object created in the definition step to
another configurational object in the same or in another module(s). E.g., assigning a
Distribution Channel to a Sales Organization and / or assigning a Sales Organization
to a Company Code.

Define SAP SD Division

To define a new division in the customizing of the SAP system, you can either
type SPRO in the transaction bar

Division Configuration > Accessing Customizing

or the same transaction can also be accessed through SAP Easy Access menu
tree: Tools > Customization > IMG > SPRO – Execute Project.
Division Configuration – Accessing SAP Customizing

Then, either press F5 or in the next screen.

Press “SAP Reference IMG”

In the SPRO transaction, you need to navigate to the following menu path:

SPRO > Enterprise Structure > Definition > Logistics General > Define, copy, delete,
check division
Division Configuration – Defining Division

A dialog box will appear, in that either double click or place cursor on Define Distribution
Channel and press button.

Division Configuration – Defining Division – Choose Activity

Press F5 on Keyboard or button

Division Configuration – Defining Division > New Entries

Enter Divisions’ with your Coding and Description finalized in the Business Blueprint
Phase.
Division Configuration – Defining Division > Two New Entries

Press Ctrl+S or button to save the created divisions. Once you try to save, a pop up
will appear containing a customization request.

Division Configuration –
Defining Division > Saving Customization

Based on your requirements/preferences, save it either with the previous request or

create a new one depending on the transport request methodology being followed at the
project. Press Enter or button to continue and system will confirm that the data was
saved.

A New Division was Created

Assign SAP SD Division

Now, the second step is to assign the divisions created / defined at the first step to
a sales organization as finalized in the Business Blueprint document. Navigate to the
following menu path in SPRO transaction: SPRO > Enterprise Structure > Assignment >
Sales and Distribution > Assign division to sales organization.
Division Configuration – Assigning Division

Press F5 on your keyboard or use button.

Division Configuration – Assigning Division > New Entries

Enter a sales organization and a division.

Division Configuration – Assigning Division > New Entries

Press Ctrl +S or button to save the assignment of divisions to a sales organization

and the system will pop up a customization request. Based on your requirements save it
either with the previous request or create a new one depending on the Transport
Request methodology being followed at the project.

SAP Sales Area is a composite organizational unit of SAP SD that enable to map a real-
life enterprise structure to the SAP representation of a company. Every document
created in SAP Sales and Distribution module must belong to a particular sales area. In
this tutorial, we will learn what is SAP Sales Area and how to setup a new sales area.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.

In SAP Sales and Distribution, SAP Sales Area is simply a of combination of Sales
Organization, Distribution Channel and Division. It defines that a certain Sales
Organization employed a certain strategy of market reach, i.e. a Distribution Channel to
sale a good or service belonging to a particular division.
SAP Sales Area (Example)
Every sales document in SAP Sales and Distribution is assigned to a single Sales Area.
Sales reporting can be further refined or drilled when you restrict and select a certain
Sales Area in the SAP system.

How to Define SAP Sales Area?

To define a Sales Area in the customizing of the SAP system, you can either
type SPRO in the transaction bar:

Sales Area Configuration – Accessing Customizing

or the same can also be accessed through SAP Easy Access menu tree by navigating
to the following menu path: Tools > Customization > IMG > SPRO – Execute Project.
Sales Area Configuration – Accessing Customizing via Menu

Then, either press F5 or in the next screen.

Press “SAP Reference IMG” Button
Now, the main step is to define new Sales Areas with combinations of Sales
Organization, Distribution Channel and Division created / defined according to the
organizational structure of the company. Go to the following menu path: SPRO >
Enterprise Structure > Assignment > Sales and Distribution > Set up sales area.
Sales Area Configuration – Setup Sales Area

Next, press F5 on Keyboard or button.

Sales Area Configuration – Setup Sales Area > New Entries
Enter combinations of Sales Organizations, Distribution Channels and Divisions.

Sales Area Configuration – Setup Sales Area > New Entries (Example)

Press Ctrl +S or button to save the setup of Sales Areas and the system will popup
a window with a request to save changes in a customization request. Based on your
preferences, save it either with the previous request or create a new one depending on
the Transport Request methodology being followed at the project.

SAP Sales Office is one of sales organizational units in SAP SD that enable to map a
real-life enterprise structure to the SAP representation of a company. In this tutorial, we
will learn what is SAP sales office, how to define a new SAP sales office, and how to
perform assignment of a sales office to a sales area.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.

Companies often set up several sales offices apart from the head office or headquarters
to reach the market in depth. These sales offices are often located in different
geographical areas. Sales reporting can be executed at the level of SAP sales office in
order to analyze performance of individual sales offices. SAP sales office basically acts
as a liaison office between the company’s headquarters, the sales department and the
customer.

How to Create SAP Sales Office?

I am sure you have gone through the tutorial SAP SD Organizational Structure available
in the tutorials section. This tutorial will help you in learning the steps about
configuration done in SAP customizing and how the SAP Sales & Distribution
Organizational structure is configured during Realization Phase finalized in the Business
Blueprint Phase.

There are two steps in Organizational Structure configuration:

 Definition: this is the first step in organizational structure configuration where you
create and define the organizational structure with the ‘coding’ finalized in the
Business Blueprint Phase.
 Assignment: this is the second step in the organizational structure configuration
setup where you assign the configurable object created in the definition step to
another configurational object in the same or in another module(s). E.g., assigning a
Distribution Channel to a Sales Organization and / or assigning a Sales Organization
to a Company Code.

Define SAP Sales Office

To define a new SAP sales office in the customizing of the SAP system it is necessary
to either type SPRO in the transaction bar:

SAP Sales Office Configuration – Accessing Customizing

or the same can also be accessed through SAP Easy Access menu tree by the
following path: Tools > Customization > IMG > SPRO – Execute Project.
 SAP
Sales Office Configuration – Accessing Customizing via Menu

Then either press F5 or in the next screen.

Press “SAP Reference IMG”

In the SPRO transaction, you need to navigate to the following menu path: SPRO >
Enterprise Structure > Definition > Sales and Distribution > Maintain sales office.

Sales Office Configuration – Defining Sales Office

Press F5 on your keyboard or button.

Sales Office Configuration – Defining Sales Office > New Entries

Enter sales offices with the codes and descriptions that you require.
Sales Office Configuration – Defining Sales Office > New Entries (Example)

Once you press Enter, a pop up window will appear which requires you to enter
address, telephone, email, etc. for each of the SAP sales office(s) maintained.

Sales Office Configuration – Defining Sales Office > New Entries > Sales Office Details
Sales Office Configuration – Defining Sales Office > New Entries > Sales Office Details (Example)

Press Enter or button to continue. Next, press Ctrl+S or button to save the
created sales office(s). Once you try to save, a pop up will appear containing a prompt
for a customization request.

Sales Office Configuration

– Defining Sales Office > Saving Customization
Based your requirements, save it either with the previous request or create a new one
depending on the transport request methodology being followed at the SAP project.

Press Enter or button to continue and system will confirm that the data was saved.

New SAP Sales Offices were Successfully Created

Assign SAP Sales Office

Now, the second step is to assign the created / defined in the first step SAP sales
office(s) to the SAP sales area(s) as it was finalized in the Business Blueprint
document. Navigate to the following menu path: SPRO > Enterprise Structure >
Assignment > Sales and Distribution > Assign sales office to sales area.

Sales Office Configuration – Assigning Sales Office

Press F5 on the keyboard or use button.

Sales Office Configuration – Assigning Sales Office – New Entries

Enter a sales area, i.e. a sales organization, a distribution channel, a division, and a
sales office.
Sales Office Configuration – Assigning Sales Office To Sales Area

Press Ctrl +S or button to save the assignment of sales offices to sales areas and
the system will pop up a customization request. As usual, based on your
requirements save it either with the previous request or create a new one depending on
the transport request methodology being followed at your SAP project.

SAP Sales Group is one of sales organizational units in SAP SD that enable to map a
real-life enterprise structure to the SAP representation of a company. In this tutorial, we
will learn what is SAP sales group, how to define a new SAP sales group, and how to
perform assignment of a sales group to a sales office.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.
Employees belonging to a certain SAP sales office can be divided into sales groups.
These sales groups are assigned to their respective sales offices. SAP sales group is a
subset of an SAP sales office.

How to Create SAP Sales Group?

I am sure you have gone through the tutorial SAP SD Organizational Structure available
in the tutorials section. This tutorial will help you in learning the steps about
configuration done in SAP customizing and how the SAP Sales & Distribution
Organizational structure is configured during Realization Phase finalized in the Business
Blueprint Phase.

There are two steps in Organizational Structure configuration:

 Definition: this is the first step in organizational structure configuration where you
create and define the organizational structure with the ‘coding’ finalized in the
Business Blueprint Phase.
 Assignment: this is the second step in the organizational structure configuration
setup where you assign the configurable object created in the definition step to
another configurational object in the same or in another module(s). E.g., assigning a
Distribution Channel to a Sales Organization and / or assigning a Sales Organization
to a Company Code.

Define SAP Sales Group

To define a new SAP sales group in the customizing of the SAP system it is necessary
to either type SPRO in the transaction bar:

SAP Sales Group Configuration – Accessing Customizing

or the same can also be accessed through SAP Easy Access menu tree by the
following path: Tools > Customization > IMG > SPRO – Execute Project.
 SAP
Sales Group Configuration – Accessing Customizing via Menu

Then either press F5 or button in the next screen.

Press “SAP Reference IMG” to Access Customizing

In the SPRO transaction, you need to navigate to the following menu path: SPRO >
Enterprise Structure > Definition > Sales and Distribution > Maintain sales group.

Sales Office Configuration – Defining Sales Group

Press F5 on your keyboard or button.

Sales Group Configuration – Configuring Sales Group > New Entries

Enter sales groups with the codes and description that you require.
Sales Group Configuration – Defining Sales Group > New Entries (Example)

Then, press Ctrl+S or button to save the created sales group(s). Once you try to
save, a pop-up window will appear containing a customizing request.

Sales Group Configuration

– Configuring Sales Group > Saving Customization

Based on your requirements/preferences, save your customizing either with the

previous request or create a new one depending on the transport request methodology
being followed at the SAP project. Next, press Enter or button to continue and the
system will confirm that the data was saved.

New SAP Sales Group(s) were Successfully Created

Assigning SAP Sales Group

Now, the second step is to assign the sales group(s) created / defined at the first step
to SAP sales offices as finalized in the Business Blueprint document. Navigate to the
following menu path: SPRO > Enterprise Structure > Assignment > Sales and
Distribution > Assign sales group to sales office.
Sales Group Configuration – Assigning Sales Groups Activity in SPRO

Press F5 on your keyboard or button.

Sales Group Configuration – Assigning Sales Groups

Enter codes of sales offices and sales groups into the available columns.
Sales Group Configuration – Assigning Sales Groups to Sales Offices

Finally, press Ctrl+S or button to save the assignment of sales group(s) to sales
office(s) and the system will pop up a window with a customizing request. Based on
your preferences/requirements save it either with the previous request or create a new
one depending on the transport request methodology being followed at your
SAP project.

Sales Groups were Assigned to Sales Offices

SAP Shipping Point is one of sales organizational units in SAP SD that enable to map a
real-life enterprise structure to the SAP representation of a company. To be more
precise, a shipping point belongs to SAP Logistics Execution (LE) module of SAP. In
this tutorial, we will learn what is SAP shipping point, how to define a new SAP shipping
point, and how to perform assignment of a shipping point to a plant.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.
For shipping products to a customer, a shipping point is required in SAP. A shipping
point needs to be assigned to a plant. A plant can have several shipping points based
on the dispatch activities required for shipping. For instance, some materials are fragile
in nature and require extra care while dispatching, so they require manual handling.
Another example is a product which is heavy in nature and require tools such as forklift
or crane for loading. Several plants can share one shipping point provided they are
physically located within the same vicinity.

How to Create a Shipping Point?

I am sure you have gone through the tutorial SAP SD Organizational Structure available
in the tutorials section. This tutorial will help you in learning the steps about
configuration done in SAP customizing and how the SAP Sales & Distribution
Organizational structure is configured during Realization Phase finalized in the Business
Blueprint Phase.

There are two steps in Organizational Structure configuration:

 Definition: this is the first step in organizational structure configuration where you
create and define the organizational structure with the ‘coding’ finalized in the
Business Blueprint Phase.
 Assignment: this is the second step in the organizational structure configuration
setup where you assign the configurable object created in the definition step to
another configurational object in the same or in another module(s). E.g., assigning a
Distribution Channel to a Sales Organization and / or assigning a Sales Organization
to a Company Code.

Define SAP Shipping Point

To define a new SAP shipping point in the customizing of the SAP system it is
necessary to either type SPRO in the transaction bar:

SAP Shipping Point Configuration – Accessing Customizing

or the same can also be accessed through SAP Easy Access menu tree by the
following path: Tools > Customization > IMG > SPRO – Execute Project.
 SAP
Shipping Point Configuration – Accessing Customizing via Menu

Then either press F5 or in the next screen.

Press “SAP Reference IMG” to Access Customizing of Shipping Points

In the SPRO transaction, you need to navigate to the following menu path: SPRO >
Enterprise Structure > Definition > Logistics Execution > Define, copy, delete, check
shipping point.
Shipping Point Configuration – Define Shipping Point

A dialog box will appear, in which you need to either double click or place cursor
on Define shipping point and press button.
Shipping Point Configuration – Define Shipping Point – Choose Activity

Shipping Point Configuration – Define Shipping Point – Existing Shipping Points

In the standard SAP system, a shipping point 0001 is available. Therefore, you have
two options regarding defining a new shipping point:

1. Either copy this 0001 Shipping Point and in this way all the necessary data will be
copied. Rename the copied shipping point with your code and make changes where
necessary. This can be done by selecting 0001 Shipping Point and pressing F6 on

the keyboard or button.

 Shipping Point Configuration – Define Shipping Point > Choosing Copying Option

2. Or define all the values by yourself by pressing F5 on the keyboard

or button.

We shall choose and proceed with the first option (copying) since it helps in populating
fields with default values. You can copy the standard 0001 shipping point or any
other shipping point available in your SAP systems that caters your requirements.
Shipping Point Configuration – Define Shipping Point > Creating a New Shipping Point by Copying an
Existing One

Modify details of the shipping point with the code, description and other fields according
to your requirements.
Shipping Point Configuration – Define Shipping Point > Modified Values

Once you press Enter on the keyboard, a pop up window will appear which requires you
to enter address, telephone, email, etc. for the shipping point.
Shipping Point Configuration – Define Shipping Point > Customizing > Details of Shipping Point

Adjust the address data as you require and press Enter on your keyboard or button
to continue.

Shipping Point Configuration – Define Shipping Point > New Shipping Point
Press Ctrl+S or button to save the created shipping point. Once you try to save, a
pop-up will appear containing a customizing request.

Shipping Point
Configuration – Define Shipping Point > Saving Customizing

Based on your preferences save it either with the previous request or create a new one
depending on the transport request methodology being followed at the SAP project.
Next, press Enter on the keyboard or button to continue and the SAP system will
confirm that the data was saved.

New SAP Shipping Point was Successfully Created

Assign SAP Shipping Point

Now, the second step is to assign the shipping point created / defined in the first step to
a plant which is configured in the Materials Management (MM) module as finalized in
the Business Blueprint document. Navigate to the following menu path: SPRO >
Enterprise Structure > Assignment > Logistics Execution > Assign shipping point to
plant.

One of the important steps in SAP SD customizing is assignment of plants to

combinations of sales organizations and distribution channels. In this tutorial, we will
learn why it is necessary to perform such an assignment and provide step-by-step
guidance about the customizing actions that need to be performed in an SAP system.

Prerequisites
Before you proceed with this tutorial, it is advisable to please go through the tutorial
about SAP SD Organizational Structure available in SAP SD Training Course until and
unless you are aware of the organizational structure functionality of SAP SD.
The Purpose of Assignment of Sales
Organization – Distribution Channel
– Plant
The purpose of this step in the backend configuration (assignment of a plant to the
combination(s) of sales organization and distribution channel) is to allow the
combination of a sales organization and a distribution channel to proceed sales with the
assigned plant, so that the sales from the combination of a sales organization and a
distribution channel with the respective plant can be facilitated. Any number of plants
can be assigned to the combinations of sales organization(s) and distribution
channel(s). One plant can be assigned to more than one combinations of sales
organization and distribution channel.

To assign a plant to a combination of a sales organization and a distribution channel

in the customizing of the SAP system it is necessary to either type SPRO in the
transaction bar:

Sales Organization – Distribution Channel – Plant Configuration – Accessing Customizing

or the same can also be accessed through SAP Easy Access menu tree by the
following path: Tools > Customization > IMG > SPRO – Execute Project.
SAP Sales Organization – Distribution Channel – Plant Configuration > Accessing Customizing
via Menu

Then either press F5 on the keyboard or in the next screen.

Press “SAP Reference IMG” to Access Customizing for Assignment of Sales Organization –
Distribution Channel – Plant

Now, the main step is to assign plant(s) to combinations of sales organizations and
distribution channels. Navigate to the following path in customizing menu: SPRO >
Enterprise Structure > Assignment > Sales and Distribution > Assign sales organization
– distribution channel – plant.

Sales Organization – Distribution Channel – Plant Configuration – Assignment

Next, press F5 on the keyboard or button.

Sales Organization – Distribution Channel – Plant Configuration – Assignment > New Entries
Enter sales organization(s), distribution channel(s) and plant(s).

Sales Organization – Distribution Channel – Plant Configuration – Assignment > New Entries
(Example)

Finally, press Ctrl +S or button to save the assignment of plant(s) to sales

organization(s) and distribution channel(s) and the SAP system will popup a window
with a customizing request. Based on your preferences save it either with the previous
request or create a new one depending on the transport request methodology being
followed at your SAP project.
Shipping Point Configuration – Assigning Shipping Point

The system will show the following transaction:

Shipping Points -> Plans: Overview

Place the cursor on the plant to which you want to assign the shipping point and

press button. A pop-up window will appear containing the list of existing
shipping points.
Shipping Point Configuration – Assigning Shipping Point To Plant – List of Shipping Points

Scroll through the list and find your required shipping point. Then, press on the check
box.
Shipping Point Configuration – Assigning Shipping Point To Plant – Selected One Shipping Point

Press Enter on the keyboard or button to continue.

Shipping Point Configuration – Assigning Shipping Point To Plant – The Shipping Point was Assigned

Press Ctrl +S or button to save the assignment of the shipping point to the plant and
the system will pop-up a window with a customizing request. Based on your
preferences save it either with the previous request or create a new one depending on
the Transport Request methodology being followed at your SAP project.