Creation of New Sales Area for PVC Unit

As per my understanding a new sales area has to be configure in the system, as

sales organization is the highest organizational element in SD. We will define a
new Sales organization and assign it to present Company Code as no new
company code will be define.
Enterprise Structure:
1. Define Sales Organization
2. Define Distribution Channel
3. Define Division
4. Assigning Sales Organization to Company Code
5. Assigning Distribution Channel to Sales Organization
6. Assigning Division to Sales Organization
7. Set up Sales Area
8. Assigning Sales Organization- Distribution Channel- Plant
9. Define Shipping Points
10.Assigning Shipping Point to Plant
11.Defining Common Distribution Channels for Master Data
12.Defining Common Divisions for Master Data Use
During the system analysis these are elements which are used under SD module.
We can study these elements and configure our new elements in SD.
Sales Area Structure: Sales Organization 2000 assign to Company Code 2000 Al Jazera Factories.
Distribution Channel 10 Direct Sales
30 Exports
Division 00
Sales Office 1000 Jeddah Sales Office
2000 Riyadh Sales Office
Plants 2300 FINISHED GOODS -JEDDAH
2500 FINISHED GOODS -RIYADH
2600 FINISHED GOODS -DAMMAM
Points that need discussion: 1.
2.
3.
4.
5.

How many distribution Channel we be maintain in the system?

What are the division or product line are not be maintain?
How many sales office will be there?
What are the plants which will be selling finished goods?
Any new structure has to be maintain in the system?

Pricing Procedure

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization +

Distribution Centre + Division) + Customer Pricing Procedure + Document
Pricing Procedure. Sales Area is determined in Sales Order Header Level.
Customer Pricing Procedure is determined from Customer Master. Document
Pricing Procedure is determined from Sales Document Type / Billing Type (if
configured). Once the pricing procedure is determined, Condition records are
fetched. If appropriate condition records are found, the price is determined. If
Mandatory pricing condition is missing, system will through an error message.

In SD, the steps to configure Pricing procedure are as under:

Condition record: Condition record is a master data, which is required to be

maintained by Core team / person responsible from the client.

Condition table: Select the required fields combination, which will store condition
record. If existing condition table meets the requirement, we need not create a
new condition table. Considering the requirement for new condition table, the
configuration will be done in SPRO.

Access Sequence: Access sequence is made up of Accesses (Tables) & the order
of priority in which it is to be accessed. Here we assign the condition table to
access sequence. If existing access sequence meets the requirement, we need
not create a new access sequence. Considering the requirement for new
sequence, the configuration will be done in SPRO.

Condition Type: It is always recommended to copy an existing similar condition

type & make the necessary changes. Here we assign Access sequence to
Condition type. If existing condition type meets the requirement, we need not
create a new condition type. Considering the requirement for new condition type,
the configuration will be done in SPRO.

Pricing Procedure: It is recommended to copy a similar pricing procedure & make

the necessary changes in new pricing procedure. Pricing Procedure is a set of
condition type & arranged in the sequence in which it has to perform the
calculation. Considering the requirement for new Pricing Procedure, the
configuration will be done in SPRO.
Pricing Procedure: After maintaining the pricing procedure the next step will be
determination of pricing procedure. Configuration for determining pricing
procedure in SPRO.

During the system analysis found the ZJASCO is only pricing procedure is been
used by the business.

Points that need discussion: 1.

2.
3.
4.

Account Keys
Accruals used by the business
Calculation of taxes
Any new condition type is to be maintain

Account Keys
ERL Revenue
ERS Sales deduction
ERF Freight Revenue
ERG Freight Deduction
DRF Freight Cost debit memo
DIF Difference Account Key
PPC Cash Payment
PPS Check Payment

Normal Sales Order Cycle: 1. Sales Document Type: The sales document types represent the different
business transactions, such as Inquiry, Quotation, Sales Order, etc. To
create new sales order type, always copy as with reference to similar sales
order. If possible, use standard sales order.
2. Define Number Ranges for Sales Documents: Maintain number range with
discussion with core team.
3. Assign Sales Area to Sales Document Types:
A. Combine sales organizations / Combine distribution channels /
Combine divisions: Ensure to maintain these, else Sales Order
creation will give error.
B. Assign sales order types permitted for sales areas: Assign only
required Sales Order Types to required Sales Area. This will minimize
selection of Sales Order Type as per sales area.
Sales Document Item:
1. Define Item Categories: If possible use Standard Item Category. Incase if
required to create new, copy as from standard & maintain New.
2. Assign Item Categories: If possible, use standard. Formula for deriving
item category: Sales Document Type + Item Category Group + Usage +
Higher Level Item Category = Item Category

Schedule Line:
1. Define Schedule Line Categories: If possible use Standard Schedule Lines.
Incase if required to create new, copy as from standard & maintain New.
2. Assign Schedule Line Categories: If possible, use standard. Formula for
deriving Schedule Line: Item Category + MRP Type / No MRP Type.
Delivery: 1. Define Delivery Types: If possible use Standard Delivery Type. Incase if
required to create new, copy as from standard & maintain New.
2. Define Item Categories for Deliveries: If possible use Standard Item Categories
for Delivery Type. Incase if required to create new, copy as from standard &
maintain New.
3. Define Number Ranges for Deliveries: Ensure to maintain number range.
Billing / Invoice
1. Define Billing Types: If possible use Standard Billing Type. Incase if required to
create new, copy as from standard & maintain New.
2. Define Number Range for Billing Documents: Ensure to maintain number
range.
3. Maintain Copying Control for Billing Documents: Maintain relevant copy
controls such as Sales Order to Billing, deliver to Billing, etc.
During the system observation these are the element which are been used by
the business.
Sales Document Type
1.
2.
3.
4.
5.
6.
7.

ZOR Standard Order

ZJO Job Order
ZIN Inquiry
ZQT Quotation
ZG2 Credit Memo Credit
ZRE Return Credit
ZDR Debit Memo Request

Item Category
1.
2.
3.
4.
5.
6.
7.
8.

TAN Standard Item

TAX Non-stock Item
ZJO Job Order Item Category
TATX Text Item
AFN Inquiry Item
AFTX Text Item (Inquiry)
AGN Standard Item (Quotation)
AGX Quotation Item

9. G2N Request
10.REN Standard Item (Return Credit)
11.G2TX Text Item
12.L2N Request
Billing Type
1.
2.
3.
4.
5.
6.

F2 Invoice
S1 Cancel Invoice
G2 Credit Memo
RE Credit for Returns
S2 Cancel of Credit Memo
L2 Debit Memo

Points that need discussion: 1.

2.
3.
4.

Any new sales process is to introduce

Any new Item Category is to be maintain
Any new Billing type is to be maintain
Third party sales process is to be maintain for PVC unit