Sales and Distribution Process

Hello everyone! In today’s session, we’ll learn about sales and distribution process in SAP Finance. Before moving ahead with this session, let us summarize what we have learned from our previous session, which was on purchase orders. Now under purchase order, we have seen how to create a material using a transaction code ML03 and how to display the details with relation to finance documents under material creation. Then we have seen under purchase order how to create and view goods receipts and invoice receipts, and how to display the documents with the help of a data interview and a general ledger view on FI documents. Further, we have learned about invoice verification. Then we have seen the process of how to do the reversal. That’s the cancellation of an invoice verification. And last, we have learned about how to release a blocked invoice and how to do the manual process for releasing the blocked invoices. So these were the topics which we have explored and learned under purchase order session, which was related to finance documents.

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Now under the sales and distribution section, we will cover the topics like the process of sales and distribution, then comparison of master data from sales and distribution to financed accounting using the transaction code OV50. Then we’ll see how to display sales order using transaction code FV03 Then we’ll learn how to display the billing document using transaction code VF03. Then we’ll see how to create an excise invoice using transaction code J1IIN and last, we’ll see what is customer analysis using transaction code FD11. So this is the course content for this particular session on sales and distribution. Now first, we’ll see the process of sales and distribution. So here we have a graphical orientation where it shows how the sales and distribution process takes place with the help of this different materials, plants, company codes, controlling area, etc.

So here we have sales organization and here we have company code assignment. So we assign the company codes to the sales organization. So here the company code assignment can contain companies, the company codes, and the controlling area. Followed to that, we have company code controlling area assignment. Then we maintain profit center under this process. Along with profit center, we maintain cost center. So sales and organization have all these details under the master data. Then we have something called as purchasing organization that is a purchasing group. Followed to that, we have a purchasing organization plant assignment. Then in purchasing organization, we have material valuation area. Now here we’ll create the materials and we’ll assign the purchasing org and the plan details to that particular purchase orders. And then those are assigned to the sales organization’s offices. And here under  this process, we have something called as material valuation area where it contains the details of all the materials where we assign the details of FI documents to that materials. So this is the process of sales organizations under SAP Finance.

For Comparison of Master Data from Sales & Distribution to Finance Accounting (OV50)

Now let us see the comparison of a master data to finance accounting. So here we’ll use transaction code OV50. Now as a finance person, we have to check whether all the information at the time of the creation of a customer  master has been properly updated in the masters or not. So for integration between sales and distribution model, reconciliation account is must to be maintained at the time of a master creation. In case person creating customer master forgets to put reconciliation account, we can use following applications to compare and find out the accounts where reconciliation account is missing. So here as a finance person, we need to check whether all the information are properly maintained or not in the master data while creating a customer master. So we have something called as reconciliation account, which is to be maintained at the time of master creation under sales and distribution. And if someone forgets to maintain those reconciliation account settings, then we can compare that and find out the accounts where those reconciliation account settings are missing. So for finding out that, we’ll use a transaction code called OV50. So this is the only difference between the sales and distribution and finance accounting where reconciliation account settings needs to be maintained during the time of the customer creation. So this is the SAP menu part for master data comparison, that is OV50. 

So via this, we can check whether the customer master data has settings for reconciliation account or not. So this is a screen of customer master data comparison.

Here, we’ll maintain the, details, like company code, the customer number. Then we’ll have to select the parameters, either of the parameters, like, not created in finance accounting, or we can select the radio button not created in sales and distribution. So after maintaining the settings, we’ll click on this execute button. So once we click on the execute button, we’ll get this particular screen, which will have the detailed description of customer master data comparison.

Now here we have 2 descriptions, 1 with customers not created in financial accounting and other with customers not created in sales and distribution. So these are the 2 off displays which we’ll get when we select the radio buttons, and here it gives the details where the reconciliation count is missing. This is how we check the master data comparison.

Display Sales Order (FV03)

Now next, we’ll see how to display a sales order. So here we’ll use the transaction code called FV03. So this is the SAP menu path. We’ll go to logistics, then sales and distribution. Under that, we’ll go to sales, then order, and we’ll click on display where we have the transaction code FV03. 

So this is the sales order display view. Here, we’ll have to provide the order number for which we want to display, and with then we’ll click on the enter button. Now once we click on the enter button, we’ll get a sales order view display that is overview of that particular order number.

So this is how we display a sales order. So here it contains all the details of this particular order number. We have sales item overview, item details, ordering party, procurement, shipping, etc. So this is the details for that particular order number.