Link Between SAP SD, MM & FI

1. In SAP you will always get integration with other modules. SD will interact with FI,
MM will interact with SD :-

1a. Looking at MM and SD interaction first, take the scenario of a third party order
process. This process uses a purchase order (which is sent to your vendor). Also invoice
verification is used further along the process to check that the invoice you send to your
customer is the same material and quantity as that which the vendor sends to you (but
obviously shipped
directly to your customer).

1b. Billing is an SD function. But SAP needs to know, when processing a customer's
payment, to which GL account the payment has to be processed. For instance payment of
a UK based material would be placed in a different GL account to that of a non-UK based
material. Furthermore, a UK based customer may have a different GL account to that of
an Export customer. This is configured in Account Determination.

2. ABAPers are there to essential do some bespoke development. Your integration, or

interaction, with them would be when specifying the tables, fields, input fields, a simple
process explanation, data mapping (if doing an interface from one system to another)
etc. *-- Shahee

The link between SD and MM :-

1. When you create sales order in SD, all the details of the items are copied from Material
master of MM.

2. MRP and availibility check related data is also taken from MM although you control
this data in SD also.

3. While you create inbound/outbound delivery with reference to a sales order,the

shipping point determination takes place with the help of the loading group, plant data,
shipping conditions etc. This also refers to Material Master.

4. The material which you are entering in a sales order must be extended to the sales area
of your sales order/customer otherwise you cannot transact with this material.

There are many such links between SD and MM.

Now the link between SD and FI :-

1. Whenever you create a delivery with reference to a sales order, goods movement takes
place in the bacgground. eg. In case of standard sales order, you create an outbound
goods delivery to the customer.
Here movement 601 takes place. This movement is configured in MM. Also, this
movement hits some G/L account in FI. Every such movement of good s hits some G/L
account.

2. The accounts posting in FI is done with reference to the billing documents (invoice,
debit note, credit note etc) created in SD. Thus this is a link between SD and FI

3. Tax determination: In case of a tax determination also, there is a direct link between
SD and MM

SD Integration points with other modules

SD module is highly integrated with the other modules in SAP.

Sales Order –
Integration Points Module
•Availability Check - MM
•Credit Check - FI
•Costing - CO/ MM
•Tax Determination - FI
•Transfer of Requirements - PP/ MM

Delivery & Goods Issue –

Integration Points Module
•Availability Check - MM
•Credit Check - FI
•Reduces stock - MM
•Reduces Inventory $ - FI/ CO
•Requirement Eliminated - PP/ MM

Billing -
Integration Points Module
•Debit A/R - FI/ CO
•Credit Revenue - FI/ CO
•Updates G/ L - FI/ CO
(Tax, discounts, surcharges, etc.)
•Milestone Billing - PS

Return Delivery & Credit Memo -

Integration Points
•Increases Inventory
•Updates G/ L
•Credit Memo
•Adjustment to A/R
•Reduces Revenue
Tips by: Subha
Module
- MM
- FI
- FI
- FI
- FI

SD Transaction Code Flow:

Inquiry / Document type IN

Tcode for creation VA11,VA12,VA13. tables VBAK,VBAP
Quotation / QT
Tcode for creation VA21,VA22,VA23. tables VBAK,VBAP

Purchase Order PO
Tcode for creation ME21,ME22,ME23. tables EKKO,EKPO.

Sales Order OR
Tcode for creation VA01,VA02,VA03. tables VBAK,VBAP

Delivery LF
Tcode for creation VL01,VL02,VL03. tables LIKP,LIPS

Billing MN
Tcode for creation VF01,VF02,VF03. tables VBRK,VBRP

To create a sales order we need purchase order number and custmer number. Before that,
to create a purchase order we need to have material no, vendor no.

To create vendor tcode is

xk01(create), xk02(change) , xk03(display)
Tables are lfa1.

To create custmer tcode is xd01, xd02, xd03.

Table is kna1.

After creating sales order using this no we can create delivery note tcode is vl01. *--
Ujwala Shirsulla

Purchase Price Determination

Use
Calculating a sales price for an article is based on a Purchasing price that represents the average
procurement costs of the article for the organizational level for which the sales price is to be
calculated. This price is called the net/net purchase price, or simply the purchase price.

Determining the purchase price in the sales price calculation function is known as purchase price
determination. A number of different procedures can be used in purchase price determination.
These are related to particular article characteristics, particular features of procurement and the
business processes for sales price calculations.

You can use the purchase price determination types and purchase price determination
sequences to structure purchase price determination to suit your company's requirements.

Prerequisites
You can define your own purchase price determination sequences in Customizing for Pricing in
addition to those supplied. See below for further details.

Features
The purchase price determination types and the purchase price determination sequences are the
basic elements of purchase price determination.

Purchase price determination types

The purchase price determination types are different procedures for determining purchase prices.
The following purchase price determination types are defined by SAP.

Purchase price determination Description

type

A Purchase price determination with schema as per standard

schema determination

B Purchase price determination with a specified special schema

C Purchase price determination using a customer-defined function

module

D Interactive entry

E Purchase price determination using article components (sales

set)

F Vendor mixed price

• Purchase price determination type A

Purchase price determination type A is linked either to supply source determination or to

a source of supply check for a specified vendor. You can specify whether source
determination is to be carried out with or without notification of errors.

Standard schema determination is used to find the correct schema for purchase price
determination. This determines the relevant purchase price calculation schema for
external vendors and the relevant calculation schema for price determination for internal
vendors (distribution centers). The purchase price is then calculated using the schema
determined.

For further information, see Supply Source Determination.

• Purchase price determination type B

In purchase price determination type B, you can use a special schema (application M or
V) that has been specifically designed for sales price calculations. You need to enter this
 special schema, together with the application, in Customizing for Pricing when
determining the purchase price determination sequence.

If you keep this special schema simple, performance for price determination also
improves considerably.

For example, the special schema could contain just one condition type, which
represents the moving average price, or it could contain the purchase price that
was calculated and saved in a previous sales price calculation. It makes sense to
use the latter procedure for those articles whose purchase price will not change
over a longer period of time, for example.

• Purchase price determination type C

You use purchase price determination type C to take special company-specific

requirements into account by using function modules you have developed yourself.

You need to enter these function modules in Customizing for Pricing when you determine
the purchase price determination sequence.

• Purchase price determination type D

In purchase price determination type D, you can enter the purchase price of the article
directly in the pricing table. This makes sense in cases where you want to specify the
purchase price or where there are no entries for the purchase price in the system as yet,
but the purchase price can still be estimated.

• Purchase price determination type E

You can use purchase price determination type E to calculate prices for structured
articles, that is, for articles that, like sales sets, are made up of several components. In
such cases, the purchase price of each component is determined, and the purchase price
of the structured article is obtained by adding the purchase prices of the components
together, taking into account the number of pieces of each.

• Purchase price determination type F

If the article is sold at different prices by different vendors, you can use purchase price
determination type F to determine the average purchase price of the article. You can
enter weighting factors for the vendors, for example on the basis of the planned
procurement quantities, on a separate screen.

Purchase price determination sequences

The sales price determination sequences are the second element in flexible purchase price
determination. Purchase price determination sequences 01 to 07 are supplied as standard. You
can define further purchase price determination sequences in Customizing for Pricing. Here, you
define the sequence in which the purchase price determination types are to be used in
determining purchase prices.
In the selection screen for sales price calculations, you need to select one of the purchase price
determination sequences defined in Customizing.

It is important to remember the following points when defining purchase price determination
sequences in Customizing:

• Steps

You can enter steps - in the same way as you do for access sequences for conditions -
for a purchase price determination sequence to define the sequence in which the
purchase price determination types are called up during purchase price determination.
You can also, however, simply enter a single purchase price determination type, as is
shown in the supplied purchase price determination sequence 01.

If you use an appropriate list variant, you can display the purchase price
determination type in the list field EKERA in the pricing table. This enables you to
see quickly which purchase price determination type was used to find the
purchase price when you are using multi-level purchase price determination
sequences.

• Parameters

You have to specify the relevant parameters for each purchase price determination type,
such as the source of supply determination type or the special schema with its
appropriate application.

• Pricing requirements

You can enter pricing requirements to exclude certain steps (certain purchase price
determination types) from purchase price determination.

For example, pricing requirement 01 in purchase price determination sequence

02 specifies that the second step of purchase price determination is only to be
performed for articles with article category 10 (sales set).

You can define Pricing requirements in Customizing for Sales and Distribution,
under System adjustment, in the same way as you defined the requirements for
price determination.

Activities
In the selection screen for sales price calculation, select the purchase price determination
sequence required.
The system determines the appropriate purchase price determination type and the assigned
calculation schema, source of supply, and so on. The values determined are displayed in the
pricing table.

You can also enter (and interactively change) the purchase price determination sequence in the
EKERV list field of the pricing table. If changes are made, the system performs the calculation
again.

See also:

Using the Condition Technique in Calculations and Price Determination

Sales Price Determination

Use
Determining suggested values for sales prices in the sales price calculation function is known as
sales price determination. Calculating the margin (gross, net) or the actual markup from the sales
and purchase prices is also part of sales price determination.

There are various ways to determine sales prices. You may, for example, want to determine your
sales prices using a predetermined planned markup, or based on competitor prices. For this
reason, the sales price calculation function in Pricing gives you the same flexibility in determining
sales prices as you have in determining purchase prices.

Prerequisites
You can define your own sales price determination sequences in Customizing for Pricing in
addition to those supplied. See below for further details.

Features
The sales price determination types and the sales price determination sequences are the basic
elements of sales price determination.

Sales price determination types

The sales price determination types are different procedures for determining sales prices. The
following sales price determination types are defined by SAP:

Sales price determination Description

type

A Calculate sales price from planned markup

B Adopt current sales price, adjust margin

C Adopt sales price from list field

 D Price change in percent with reference to a specified list field

E Absolute price change with reference to a specified list field

• Sales price determination type A

You can perform a markup calculation using sales price determination type A. This
involves calculating the sales price from the purchase price using a predetermined
planned markup.

In the remaining four sales price calculation types, the sales price is
predetermined and the actual markup (or margin) is calculated.

• Sales price determination type B

In sales price determination type B, the sales price of the article on the price
determination date is used as the suggested value. This procedure can be used to check
the effects of purchase price condition changes on the profitability of an article if the sales
price is to remain fixed (in line with the competition, for example).

• Purchase price determination type C

In purchase price determination type C, you can determine in the sales price
determination sequence that a price assigned to another list field is to be used as the
suggested value. This enables you to take account of competitors’ prices in a price
calculation, for example.

• Sales price determination type D

With sales price determination type D, you can carry out percentage price changes on
the basis of the list field (reference field) entered in the sales price determination
sequence.

The new sales prices are calculated on the basis of the sales prices that belong to the
reference field and which are valid on the key date, plus a markup or markdown that you
enter. If you do not enter a key date, the price determination date is used.

If you select the standard sales price as a reference field, you can carry out
standard price increases or reductions (for seasonal merchandise, for example).
In the same way, you can set a percentage price difference to a competitor price.

• Sales price determination type E

Sales price determination type E represents the same procedure as sales price
determination type D, with the one difference that, instead of a percentage markup, an
 absolute markup or markdown is entered. In addition, you must enter a sales currency for
the absolute price change. It is important to note here that the currency entered must be
identical with the sales currency of the pricing item.

In sales price determination types D and E , it is important to note the following:

If you do not specify a key date, when the standard sales price is determined for
seasonal articles, the system will use the sales prices valid at the start of the
season for the sales price changes. If no sales price conditions exist at the start
of the season, then the first sales prices valid in the season will be used.

Sales price determination sequences

The sales price determination sequences are the second element in flexible sales price
determination. Sales price determination sequences 01 to 06 are supplied as standard. You can
define further sales price determination sequences in Customizing for Pricing. Here, you define
the sequence in which the sales price determination types are to be used in determining sales
prices.

In the selection screen for sales price calculations, you need to select one of the sales price
determination sequences defined in Customizing.

It is important to remember the following points when defining sales price determination
sequences in Customizing:

• Steps

Defining steps for each sales price determination sequence allows you to determine the
sequence in which the sales price determination types are to be used when determining
sales prices. You can also, however, simply enter a single sales price determination type,
as shown in the supplied sales price determination sequence 01.

You can display the sales price determination type in the list field VKERA in the
pricing table. This enables you to see quickly which sales price determination
type was used to find the sales price when you are using multi-level sales price
determination sequences. To do this, you need to select an appropriate list
variant (see List Variants).

• Rounding to price points

It is possible to determine for each sales price calculation type whether prices are to be
rounded to price points.

• Pricing requirements

You can enter a requirement to exclude certain levels in the sales price determination
sequence from sales price determination.
 You can define your own Pricing requirements in Customizing for Sales and
Distribution under System adjustments.

Activities
In the selection screen for sales price calculations, select the sales price determination sequence
required.

The system determines the appropriate sales price determination type with the corresponding
parameters. The calculated sales price is displayed in the pricing table as a suggested value.

You can also enter (and interactively change) the sales price determination sequence in the
VKERV list field of the pricing table. If changes are made, the system performs the calculation
again.

See also:

Using the Condition Technique in Calculations and Price Determination

Purchase Price Determination

You can send purchase order via e-mail in SAP system, there are some configurations and pre-
requisites to do as follow:

1. You must maintain an e-mail address in the address in the vendor master.

2. The same applies to your own user master. You also have to specify an e-mail address there
in order to identify the sender.

Note that it is not possible to change the e-mail address of the vendor via the SAP purchase
order transaction (ME21N, ME22N, and so on). The system only uses the e-mail address of the
vendor that is maintained in the vendor master!

3. For the output type for default values, a communication strategy needs to be maintained in
the Customizing that supports the e-mail. You can find the definition of the communication
strategy in the Customizing via the following path: (SPRO -> IMG -> SAP Web Application
Server -> Basic Services -> Message Control -> Define Communication Strategy). As a
default, communication strategy CS01 is delivered. This already contains the necessary entry
for the external communication. Bear in mind that without a suitable communication strategy
it is not possible to communicate with a partner via Medium 5 (external sending).

4. Use the standard SAP environment (program 'SAPFM06P', FORM routine 'ENTRY_NEU' and
form 'MEDRUCK') as the processing routines.

5. In the condition records for the output type (for example, Transaction MN04), use medium
'5' (External send).

6. You can use Transaction SCOT to trigger the output manually. The prerequisite for a correct
sending is that the node is set correctly. This is not described here, but it must have already
been carried out.

7. To be able to display, for example, the e-mail in Outlook, enter PDF as the format in the
node.
For more details, check out the OSS note :191470