1. Enterprise Wide Information Systems Configuring SAP Instructor: Richard W. Vawter

2. Objectives
The primary objective of this discussion is to show how the SAP R/3 Implementation Guide (IMG) can be used to aid the project team in configuring business transactions.
For simplicity, we will keep our focus on the Order process.
Upon completion of this topic, you should be able to:
Describe the various implementation and configuration tools available in the SAP R/3 system.
Anticipate how elements of the Customer Master are integrated and are used to control the SD processes.
Use elements in the Material Master to streamline COM.
How to configure the Billing process for data flow and price control.

3. Topics The Implementation Guide Sales Orders and the Customer Master
Customizing the Material Master
Configuring the Billing Process

4. Methods for Implementing & Configuring SAP
SAP R/3 includes several tools to facilitate configuring SAP
and continuing support .
The R/3 Reference Model - describes the business processes included in the standard R/3 system as well as the relationship among the different application modules.
The Implementation Guide (IMG) - guides users in matching their business requirements with the SAP standard software.
The Procedural model - is used as a navigator to guide you through the whole implementation and configuration process.

5. The Implementation Guide
A tool that leads to a step-by-step customizing of selected parts (modules) of the R/3 system.
It guides the project team in matching the business requirements with the SAP standard software.
With the IMG project management functions...
Consultants in charge of implementation first decide which parts of R/3 are to be customized.
The system then automatically generates the needed hierarchical list of the customizing steps for achieving that customization.

6. The Implementation Guide
Basis configuration takes place.
Global settings are set as default in the SAP system.
The structure is defined to match the organization’s business function.
Applications are created to meet business requirements.
Financial Accounting
Materials Management
Cross- application functions are developed.
Sales and Distribution
Human Resources

7. PS PP CO FI …. HR MM SD The Enterprise IMG
The Enterprise IMG is just a subset of the Reference IMG.
It is where all the customizing takes place. PS PP CO FI …. HR MM SD
SAP Reference IMG
Enterprise IMG
Project IMG
Project 001
Project 002
Additional needs,
e.g. upgrade

8. Customizing Objects As a rule, you will have more than one SAP system.
Development system
Changes made in the development system are transported to the test system, then to the production system.
Test system
Production system
Development system 1 2 3 4
Sales organization
Sales documents
Implementation guide
Test system
Versions
Transport
Request
Workbench
organizer

9. Customizing - How to Proceed
1. Define the organizational structures in the IMG and name the individual organizational elements.
2. Assign the organizational elements.
Define the organizational elements
Assign the organizational elements

10. Topics The Implementation Guide Sales Orders and the Customer Master
Customizing the Material Master
Configuring the Billing Process

11. How Master Data is Integrated in SD Processing
Customers
Materials
Bills of Materials
Customer-Material Info
Product Proposals FI PS PM CC MM PP CO
Sales support
Data
Warehouse
Sales
Materials Mgmt.
Production Planning
Plant Maintenance
Controlling
Financial Accounting
Project System

12. Origins of Data in Sales Documents
When you create a sales order, the system proposes most of the data from the master records.
Sales order
Customer master data
Material master data
Conditions
Texts
Control tables

13. Business Partners (Partner Functions)
Partners - someone you have a relationship with or have to communicate with.
Functions - each partner type has specific functions.
Sold-to party
Ship-to party
Bill-to party
Payer
Contact person
Forwarding agent
Employee
Partner
Functions

14. Business Partners - Customer Master
Essential business partners for a sales transaction are the sold-to party, ship-to party, payer and bill-to party.
They are stored in the customer master.
Sold-to party
Ship-to party
Bill-to party
Payer
Customer
master

15. Customer Master - 3 Major Data Views
Sales data - data specific to sales, e.g. sales, distribution, shipping.
Company Code data - financial accounting data.
General data - data assigned directly to a client so it’s available to the other two areas.
General data
Sales data
Company code data FI SD

16. Customer Master - Account Groups
Account Group codes define what information will be needed; what fields will be required.
A payer only needs address information, etc, while a sold-to party needs an address plus delivery address, etc.
Customer : C1
Sales organization :
Distribution channel : 01
Division : 01
Account group : 0001
Create sold-to party
Field selection
Number assignment
One-line account: Yes/No
Output proposal
ACCOUNT GROUP 0001
ACCOUNT GROUP
0001 Sold-to party
0002 Ship-to party
0003 Payer
0004 Bill-to party
. . .
0001

17. Customer Master - Selecting Fields for Data Groups
Using field selection, you can define for each account group whether fields are optional or required.
You can suppress any fields which you do not require.
Data in the customer master record
Address
Communication
Control data
Payment transactions
Sales
Shipping
Billing
Partner usage
Output
IMG for Sales
General data
Company code data
Sales data
Hide Required Optional Display
Sales group
Statistics group
Customer group
Pricing procedure
Product proposal

18. Customer Master - Selecting Fields for Data Groups
Account groups are already set up in the R/3 system
Sold-to party
Specific fields are selected for each of these account groups
The selection of fields depends on the functionality of the partner function needed.
Bill-to party
Payer
Ship-to party
Account group
0001
Sold-to party
Sales
Shipping
Billing
Partner usage
Documents
0002
Ship-to party
Sales 1
Billing 2
0003
Payer
0004
Bill-to party
1. Controlling for authorization Tax information

19. Customer Master - Combination Rules in Field
The combination rule with the highest priority determines the respective field status.
Suppress
Display
Required
Optional
1st priority
2nd priority
3rd priority
4th priority
Transaction fields marked as:
Account group marked as:

20. Customer Hierarchies
Create hierarchies to reflect the structure of the customer organization.
Use customer hierarchies
during sales order processing
and billing for determining
pricing.
ACME Co
Central
4711
South
4712
North
4713
Northwest
4714
Northeast
4715
Customer
2743
2744
2742
Unique
node number

21. Topics The Implementation Guide Sales Orders and the Customer Master
Customizing the Material Master
Configuring the Billing Process

22. Materials - Material Types
The material type is part of the general data on a material.
The departments responsible for a material type determine which views must be maintained for a specific material.
Material A
Matl. type
 Description
 Department
 Internal/External POs
Account
assignment
Quantity/Value update
Price control
Variance for each plant

23. Selecting Fields for Materials - Influencing Factors
An individual control table is available for each influencing factor shown here and corresponds to a group of fields in the material master.
Transaction
Procurement
indicator
Material type
Plant
Industry sector
SAP
components
Field selection ?
……………..
…………

24. Materials - Material Status
You can define different kinds of material status and for each status, how the system will react when an item is created in a sales document.
Material Status
Quotation Standard Order
Discontinued part
Technical defect .
Error Warning
Error Error

25. Electrical appliances Electric screwdrivers
Product Hierarchies
Product hierarchies are used for pricing and analysis.
In the Standard SAP setup, they can be defined with up to 18 characters and three levels. 1 2 3
Level
Electrical appliances
Compressors
00001
Tools
Electric screwdrivers
Electric drills

26. Customer-Material Information
You can define customer-specific data for a material in a customer-material information record. This may incl:
cust.-specific matl. #
cust.-specific matl. description
etc.
Sales organization :
Distribution channel : 01
Customer : C1
Material Description
M1 Computer AG
M2 Computer UG
Customer-specific data
M234 Computer 550C
M598 Computer 1650B
Customer-Material Information
Customer Matl Description Qty
M234 Computer 550C 10
M598 Computer 1650B
Sales order
Sold-to Party: C1

27. Proposing Items Using Product Proposal
Material combinations which you use frequently can be stored in product proposals.
Product proposal :
Validity period : 01/01-12/31
Search term : SD product proposals
Item Material Qty.
M1 40
M2 50
M3 30
Sold-to party: C1
Sales Order
Material or
material + quantities

28. Bill of Materials - An Example
By making the appropriate settings in Customizing, you can copy the components in the bill of material to a sales order as one “item”.
Mouse
Monitor
CPU
Keyboard
Computer
Screen
Casing

29. Bill of Material - Bill of Material Categories
The bill of material category serves as a link to different objects.
You can create bills of material only for objects existing in the material master.
Material BOM
Equipment BOM
Document BOM
Material
master record A
Equipment
Document
Sales order

30. Bill of Material - Where They Are Used
Item status controls how BOM items are processed in related application areas:
Production (operations)
Construction (technical data)
Pricing
Sales & distribution (order quantity)
Plant maintenance (maintenance information)

31. Topics The Implementation Guide Sales Orders and the Customer Master
Customizing the Material Master
Configuring the Billing Process

32. Inter-company billing
Billing Types
The billing type controls the entire billing document.
Billing types are dictated by the type of the reference document.
Invoice
Cash sale
Credit/debit memo
Returns
Inter-company billing
Cancellations
Invoice list
Pro forma invoice
Billing
Types

33. The Billing Process
Each billing document requires a reference document.
Inquiry
Type: IN
Standard
Order
Type: OR
Header
Item: TAN
Schd. line
Returns
Type: RE
Item: REN
Cash Sales
Type: BV
Credit
Type: CR
Quotation
Type: QT
Type: LF
Type: F2
Type: LR
Order Document Types
Delivery Doc.
Billing Documents
Immediate

34. Billing Documents
You can reference either an order or a delivery document when creating an invoice.
This is configured in the IMG by the item category.
Std. Order
Delivery
Invoice or

35. Credit / Debit Memos
However, with credit / debit memos, you can only reference the credit / debit requests (sales documents).
Credit request
Credit memo
Debit request
Debit memo
Order
Delivery
Invoice or

36. Returns
Credit memos are created with reference to the returns (sales documents) and NOT to the returns delivery.
Credit request
Credit memo
Sales Order
Delivery
Invoice or
Returns
delivery

37. Data Flow
You can influence the data flow from reference documents to billing documents by:
Billing types
Copying control for header
Copying control for items
Order
Delivery
Invoice
For example
- payer
- item number
- prices
- texts
- ship-to party
- quantity
Doc. flow
Data flow

38. Copy Control Header F2 LF Item F2 LF TAN
As just mentioned, how data is transferred in the billing process can be influenced by the copy control data.
Header F2 LF
Item F2 LF TAN
Target Source
Billing Delivery
type type
Target Source Source
Billing Delivery Item
type type category

39. Billing Quantities
Delivery and order quantities are referenced in billing.
You can create a billing document with reference to an order for quantities already delivered.
Billing Billing Quantity
With reference to an order Delivery quantity minus quantity
already invoiced
With reference to a sales document Order quantity minus quantity
(e.g., credit memo) already invoiced
With reference to a delivery Delivery quantity minus quantity
(e.g., billing doc. Types F1 and F2) already invoiced
Pro forma invoice F5 Order quantity
Pro forma invoice F8 Delivery quantity

40. Pricing in Billing Documents
You can specify a pricing type for each billing document type and item category.
Invoice A
M1 10 pc
10 x 9.50
Manual discount
Invoice B
10 x 10.50
Discount 2 %
Invoice C
Discount 2 % & manual
Invoice D
10 x 9.00
Discount
from % -
% -
Price: Material M1
from 1.pc 10.00
10.pc 9.50
20.pc 9.00
from 1.pc 11.00
10.pc 10.50
20.pc 10.00
Order
M1 20 pc
20 x 9.00
Delivery
M pc
January
March
Pricing type:
A Price components are copied and updated (scale redetermined).
B Pricing is carried out again.
C Manual price components are copied, pricing carried out for all other components.
D Price components are copied as is from the reference document.

41. Key Points (1)
The Implementation Guide (IMG) enables the project team to match the business requirements with the SAP standard software and customize the transactions to the needs of the organization.
You can minimize the time an effort needed to create sales documents by thoroughly maintaining the customer master and defining all types of business partners.
The account group allows you to select data fields for maintaining the master data.
By classifying materials by material types, you can specify which views for a material are to be maintained.

42. Key Points (2)
When maintaining material master records, you can specify (in the IMG) which fields are to appear, to be required or optional, or are to be blocked.
You can store customer-specific information on individual materials (e.g. customer material numbers and descriptions) in customer-material information records. This enables you to create orders using material numbers specified by the ordering party.
When you frequently sell combination of materials, you can simplify sales order creation by creating product proposals.
You can also create BOM’s to combine several materials for use in SD.

43. Key Points (3) Billing documents always reference a previous document.
Reference documents will dictate the billing document type.
The flow of data is controlled:
by the programs
by billing types
by copying control tables
You can determine copying control at:
the header level
the item level