Category: SAP SD

How to Maintain Credit Limit for Customers in SAP

Learn how to maintain credit limit for customers, master data for customer credit management in SAP.

Maintain Credit limit for customers in SAP

In this activity, you specify the customers for whom the credit limits are to be maintained and specify credit control area of the customers.

Navigation

SAP R/3 Role Menu Master data for customer credit management
Transaction Code FD32
SAP PathSAP Menu => Logistics => Sales and Distribution => Credit Management => Master Data =>FD32-Change.

Set credit limit for customer in SAP – Configuration steps

Step 1 : – Execute Tcode “FD32” from SAP easy access screen.

credit limit for customers tcode

Step 2 : – From the screen, customer credit management change initial screen, enter all the required details customer number, credit control area and choose all fields of address, central data, status and payment history.

Step 3 : – Choose next screen option (Shift+F1) to go for the next screen of customer credit management screen. From the customer credit management change status screen, update the following details.

  • Credit Limit : – Specify the credit limit for customers, the amount you in this field enables the maximum credit limit allowed for customer.
  • Risk Category : – Specify the risk category of the customer.
  • Last interval review : – Specify the date on which customer credit units are last reviewed
  • Next Interval review : – Specify the date on which credit limits for customers are going to be review.

maintain credit limit for Customers in SAP

Payment history : –

On customer credit management : payment history screen, the system displays the payment history of customer. You can check all the payment history details in this screen. However we have not done any payment with this customers, so system displays as blank payment details.

credit limit for Customer SAP payment history

Central Data

From the menu > Goto => Generaldata => Central data.

  • Total Amount : – Enter the amount that specifies the overall credit limit the customer may receives in all the credit control area.
  • Individual Limit: – Enter the amount that specifies the maximum credit limit the customer may receives within a credit control area.

customer credit management central data SAP

Click on save button and save the details.

Successfully we have maintained credit limit for customers in SAP.

Create Customer Master Record in SAP (Customer Master Data)

What is customer master record in SAP?

Definition – Both financial accounting module (SAP FI) and sales & distribution module (SAP SD) uses customer master record in SAP. The customer master database contains the information about the customers and this information is stored in  individual customer master records in SAP. For each customer we have to specify a number and maintain corresponding details of customer.

The data in customer master records enables to control how the transactions data is to be posted and processed for a customer. Master records are divided into the following areas.

  • General data
  • Company code data
  • Sales area data

During sales transactions, the SAP system automatically determines the details of customer from the customer master record.

How to create customer master data in SAP

Customer master data in SAP can be created using menu path or transaction code XD03.

Navigation

SAP R/3 Role MenuCreate customer master record
Transaction CodeVD01, XD01
SAP menu pathSAP Menu => Logistics =>Sales & Distribution => Master data => Business partner => Customer => Create => VD01 – Sales and Distribution
  • Transaction code VD01 create general and sales & distribution views of customer master data. IF you create customer master data using tcode VD01, than it can only be used in SD
  • Transaction code XD01 creates general and centeral customer master views of the customer master data. It can be used in SD as well as in Finance.

Configuration Steps

Step 1: – Execute tcode “VD01” on SAP easy access screen.

customer master data tcode SAP

Step 2 : – The initial screen of customer create appears, update the following details.

Account group : – It controls view and fields, specify the customer account group key.

Customer : – You can keep this field as blank, so the system automatically generates the customer number on basis of customer number range interval.

Company Code : – Update the company code with which customer executes business transactions.

Sales Org : – Specify the sales organization code with which the customer executed the sales transactions.

Dist_Channel : – Specify the distribution channel code with which the customer executes the sales transactions.

Division : – Update the division code with which the customer executes the sales transactions.

initial screen create customer master data SAP

 

Note : – If you get an error as sales area is not defined for customers, define sales area with the combination of sales organization, distribution channel and division.

Step 3 : – On create customer: general data screen, update the following details.

Address : – Update customer title, name of customer, address details and communication details like mail id, telephone number, fax number, etc.

customer master record address details

Marketing : – Update the required details of customer like customer classification, industry type, etc.

SAP Customer master record marketing

Unloading Points : – Specifies the location at which the goods are to be unloaded for the customer.

create customer master data unloading

 

Step 4 : – Click on sales area data and update the following details.

Sales : – Under this sales area, update the required details of sales order, Price group, customer price procedure, customer hierarchy, etc.

customer sales area data SAP

Shipping : – Under shipping update delivery priority, shipping conditions, delivery plant, etc.

customer sales area data shipping SAP

After updating all the details for customer master data, click on save button and save the details. Now you get a successful message as

Customer Master Record created in SAP

Successfully we have created Customer Master Record in SAP.

Setup Partner Determination Procedure in SAP SD

In this tutorial, you will learn how to define partner functions and setup partner determination procedure in SAP SD step by step using Tcode VOPAN.

How to setup partner determination procedure in SAP

In order to get the required partner functions into customer master data, we have to define partner determination procedure in SAP SD.

Navigation

SAP R/3 Role MenuSetup partner determination
Transaction CodeVOPAN
SAP Menu PathSPRO => Sales and Distribution(SD) => Basic functions => Partner determination => Setup partner determination.

Partner determination procedure configuration steps

Step 1 : – Execute tocde “VOPAN” in the SAP command field.

Setup partner determination tcode

Step 2 : – On maintain partner determination screen, choose partner object customer master and click on change button.

maintain partner determination SAP

Step 3 : – Define partner functions

For each partner function you have to specify a corresponding partner type which controls the functionality of partner. For a partner function, if the partner type is “KU” it becomes customer and if partner type is “IS” it becomes vendor. For a partner function if we check the fields unique, than we can have only partner of that function within a customer master. “SP” is always unique.

From partner determination procedures overview screen, click on new entries to create new partner determination procedure entries as per the requirements of client.

partner determination procedures new entries sap

Under dialog structure, choose partner functions option.

partner functions SAP

From change view partner functions overview screen, click on new entries button to define the new partner functions in SAP.

partner functions new entries SAP

On new entries partner functions screen, enter the following details.

  • Partner : – Enter the key that defines as partner function in SAP
  • Name : – Description name of partner functions in SAP
  • Partner type : – Update the partner type key from the list, KU represents as customer.
  • Error : – It automatically updates by the system, when you press enter from keyboard.

define partner functions SAP

Click on save button and save the configured partner functions in SAP.

Step 4 : – Assign partner function to account group

Choose Account groups -Function assignment and click on new entries button as shown below image.

Account groups functions assignment SAP

From new entries account group function assignment screen, enter the following details.

  • Partner function : – Enter the partner function key “TC” in the field.
  • Account Grp : – Enter the account group key for assignment of partner functions to the required customer account group.

Assign partner function account group SAP

Click on save button and save the details.

Step 5 : – Define partner determination procedure

Under dialog structure, choose the partner determination procedure and click on new entries button for creation of new partner determination procedure in SAP SD module.

define partner determination procedure in SAP

On new entries partner determination procedures screen, update the following details.

  • Part.Det.Proc : – Update four digits key that identifies as partner determination procedures in SAP.
  • Name : – Enter the description of partner determination procedure key.

create partner determination procedures in SAP

Click on save button and save the configured details.

Step 6 : – Partner functions in Procedure

Choose defined partner determination procedure key and double click on partner functions in procedure.

partner function in procedures SAP

On change view partner functions in procedure overview screen, choose new entries button for assignment of partner functions to partner determination procedure.

partner functions in procedures new entries SAP

On new entries assignment screen, assign the partner functions for partner determination procedure key and choose the check box for not modifiable, mandatory function if required.

Setup Partner Determination Procedure in SAP SD

After maintaining all the required details, choose save button and save the details.

Successfully we have created partner functions and partner determination procedures in SAP.

How to Create Sales Document Type in SAP SD

Define Sales Document Type in SAP

Learn what is sales document type in SAP and how to create sales document types in SAP using tcode VOV8 with the function copy as and new entries.

SAP R/3 Role MenuDocument type maintenance
Transaction codeVOV8
SAP IMG PathSPRO => Sales & Distribution => Sales => Sales Documents => Sales Document header => Define sales document type.

 

Step 1 : – Execute tcode “VoV8” from the SAP easy access screen.

define sales document type Tcode VOV8

Step 2 : – From change view “Maintain sales order types” overview screen, a list defined document types displays with detailed description. Click on new entries option to create new sales document types in SAP.

Maintain sales order types SAP

Step 3 : – On new entries document type screen, update the following details.

Sales document type : – Enter four digits key that defines as sales document type in SAP system.

Description : – Update the descriptive text of document type.

Create Sales Document Type in SAP

After updating all the required for sales document type, click on save button and save the configured details in SAP.

Successfully we have defined sales document type in SAP SD module by using copy option.

Lets create sales document types by using new entries option.

From change view maintain sales order types overview screen, choose new entries button for creation of new sales document types with our own customized settings.

sales document types SAP new entries

From new entries sales document type screen, update the following details.

Sales document type : – Enter 4 digits that defines as sales document type in SAP system, and update the description in the given text field.

Number system : – Assign number range for interval assignment and external assignment, and update increment of item number.

General Control : – Update required fields of check credit limit, credit group, output application and other required details as per requirements of project.

Transaction flow : – Update the required fields of screen sequence group, transaction group, document price procedure, display range, quotation message and other required details.

 

sales document type in SAP

Shipping : – Update the details of delivery type, shipment cost information profile.

Billing : – Under billing you need to update billing type for delivery related billing document, ordered related billing type, Condition type line items, payment guarantee procedure and other required fields.

define sales document type in SAP SD

Contract : – Under contract update billing request and check partner authorization.

Availability check : – Update business transaction details.

define sales document types in SAP

After maintaining all the required details, click on save button and save the configured sales document type in SAP.

Assign Sales Documents and Delivery Documents in SAP

In this SAP SD Tutorial, you will learn how assign sales documents and delivery documents in SAP using navigation menu path and transaction code OVAK & OVAD.

Purpose of Configuration

After defining credit groups in SAP, you need to assign sales documents and delivery documents to a particular credit groups for checking the customer credit limits.

How to Assign Sales Documents and Delivery documents in SAP?

The link between sales document type and credit group is established through through the assignment of sales document to credit group, link between delivery documents and credit group is established through assigning delivery documents to credit groups in SAP.

Navigation

SAP R/3 Role MenuAssign sales documents & Delivery documents
Transaction CodeOVAK, OVAD
SAP IMG PathSPRO => IMG => Sales and distribution => Basic functions => Credit management and risk management => Credit management =>Assign sales documents and delivery documents => Credit limit check for order types/delivery types.

 

Step 1 : – Execute Tcode “SPRO” from SAP easy access screen.

SAP Reference IMG Tcode

Step 2 : – Choose display SAP reference IMG (F5).

Execute project - sap reference IMG

Step 3 :  – From display IMG screen, follow the navigation menu path and choose img activity SD -Basic functions -credit management and “Assign sales documents and delivery documents.

Assign sales documents and delivery documents SAP path

Step 4 : – A choose activity dialog box appears with the activities

  • Credit limit check for order types
  • Credit limit check for delivery types.

Credit limit check for order types and delivery types SAP

Assign Sales Documents

Step 5: – Double click on credit limit check for order types for assigning a credit group to the sales document type which is sales order type.

On change view sales document types – credit limit check overview screen, select the required sales document types and assign credit group key T1.

Assign sales documents SAP

Click on save button to save the details.

Assign Delivery Documents

Press F3 or click on back option, from choose activity screen, double click on credit limit check for delivery types.

Select the required delivery type and assign the corresponding credit groups respectively to block the delivery and goods issue.

Assign Delivery Documents in SAP

After assigning document types for credit limit check, click on save button and save the configured assignment details.

What is Credit group | How to Define Credit Groups in SAP

Learn what is credit group and how to define credit groups in SAP SD step by step using transaction code “OVA6”.

What is credit group in SAP?

Credit group determines which transaction are to be blocked for processing if the credit limits are exceeded. Credit groups are used to group various business documents like sales order, quotations, etc. The credit limit check is processed on the basis of data available in these documents and helps in determining the amount of credit limit that can be assigned.

Configuration values

We are going to define the following credit groups in SAP

CGDocument credit grp
T1Credit group for Sales order
T2Credit group for delivery
T3Credit group for goods issue

How to define credit groups in SAP SD

You can define or create credit groups in SAP using one of the following navigation method.

Navigation

SAP R/3 Role MenuCreate credit groups
Transaction codeOVA6
SAP IMG PathSPRO => IMG => Sales and distribution => Basic functions => Credit management and risk management => Credit management => Define credit groups

Step 1 : – Execute Tcode “OVA6”

Define credit groups SAP Tcode OVA6

Step 2 : – On change view “Credit groups transaction types overview screen, choose new entries button for defining new credit groups in SAP as per the requirements of client and project.

credit groups transaction types SAP

From credit group new entries screen, update the following details.

  • CG : –Update the two digits key that defines as credit group in SAP
  • Document credit group : –  Update the descriptive text of credit group key that displays in SAP system.

defining new credit groups in SAP SD

After creation of all required credit groups, choose save button for saving the details. Now the system prompts for the customizing request, choose customizing request ans save the configured details in SAP system.

How to Define Pricing Procedure Determination in SAP SD

In this SAP tutorials, you will learn how to define pricing procedure determination in SAP SD module step by step using transaction code OVKK.

Pricing Procedure Determination in SAP SD

During sales documents processing, the SAP system automatically determines a corresponding pricing procedure. Pricing procedure determination is based on combination of sales area, document pricing procedure and customer pricing procedure.

Navigation

SAP R/3 Role MenuPricing Procedure Determination
Transaction CodeOVKK
SAP IMG PathSPRO (Tcode) => Implementation Guide for R/3 Customizing (IMG) => Sales and distribution => Basic functions => Pricing => Pricing control => Define and assign pricing procedure => Define pricing procedure determination

Step 1: – Execute tcode “SPRO”

SAP Reference IMG Tcode

Step 2 : – Choose SAP Reference IMG (F5).

SAP Reference IMG Screen

Step 3 : – Follow the IMG menu path and click on img activity”define and assign pricing procedure”

define and assign pricing procedure in SAP

Step 4 : – Choose activity screen displays, double click on “Define pricing procedure determination”.

Define pricing procedure determination SAP

Step 5 : – On change view “Pricing Procedures: Determination in sales docs”: overview screen, click on new entries button.

Pricing Procedure determination in sales documents SAP

Step 6 : – On new entries pricing procedure determination screen, update the following details.

How to Define Pricing Procedure Determination in SAP

After maintaining all the required details, click on save button and save the configuration details of pricing procedure determination in SAP.

Note : – As per per clients requirement, you need to define separate pricing determination with in a group of customers (For e.g. whole sellers, Online sellers, etc). Different pricing procedure for a customers depending on the sales documents. However you can configure pricing procedure determination with combination of sales organization, distribution channel, divisions, pricing procedure, condition types based on the requirement of clients.

Successfully we have created pricing procedure determination in SAP SD.

What is Pricing Procedure – Define Pricing Procedure in SAP

In this SAP tutorials, you will learn what is pricing procedure and how to define pricing procedure in SAP SD using transaction code V/08.

What is Pricing Procedure in SAP

Pricing Procedure determines the price of goods and services in SAP system. When you are processing sales documents the system calculates the documents price by considering the condition types. Each pricing procedure in sap consists its own set of condition types to determines the prices of goods and service for the respective customer categories.

Purpose of configuration

In this activity you define customer pricing procedure to calculate the value of goods & service. We need to place the condition types in a sequence order. The SAP system determines the pricing procedure on the basis of

  • Customer master data
  • Sales data
  • Sales document.

How to define pricing procedure in SAP

Navigation

SAP R/3 Role MenuMaintain pricing procedure
Transaction CodeV/08
SAP IMG PathSPRO -> Implementation Guide for R/3 Customizing (IMG) > Sales and distribution > Basic functions > Pricing > Pricing control > Define and assign pricing procedure.

Note : – You define new customer pricing pro

Step 1 : – Execute tcode “V/08”.

maintain pricing procedure tcode SAP

Step 2 : – On change view procedures overview screen, click on new entries for creation of  pricing procedure in SAP.

what is pricing procedure in SAP

Step 3: – On new entries pricing procedures screen, update the following details.

  • Procedure : – Enter the key that defines as pricing procedure in SAP.
  • Description : – Enter the description of pricing procedure.

Define Pricing Procedure in SAP SD

Now click on save button and save the configured pricing procedure details in SAP system.

Step 4 : – Select the pricing procedure and double click on control tab.

SAP Pricing procedure control data

Click on new entries button and specify the required condition types in required order.

Pricing Procedure control new entries SAP

Update the following details.

Step : – It specifies the sequential number of condition type in pricing order.

CTyp : – Update the required condition types

Description : – The description of condition type will be automatically updated by SAP system.

Manual : – It enables to determine conditions during pricing in sales documents either if they are entered manually or from other application.

Required : – If you check this option for condition type, it becomes mandatory during pricing in sales documents.

Reqt : – The requirement specifies condition type has to be determined during pricing in the sales document. If a condition type to be determined in to sales document, the requirement specified here must be specified.

create pricing procedure in SAP SD

After maintaining all the required details, click on save button and save the configured details.

Successfully we have maintained pricing procedure in SAP SD.