An Ultimate guide to Sales Order in SAP S4 HANA SD

An Ultimate guide to Sales Order in SAP S4 HANA SD

Sales
Sales

In this post we will create sales orders in SAP S4 HANA SD based on the practical scenarios and see the process in details.

Sales is one of the most important area in the business thus in SAP. There are various Sales documents like sales orders, quotations, contracts, deliveries, invoice, credit memo etc.

We have chosen the most important documents for our focused sales cycle, which is given below

Sales Order –> Outbound Delivery –> Billing

Though inquiry, quotation etc also a part of the sales cycle, but to keep our focus on the main challenging part of the sales like -pricing, taxes, GL account determination etc. we have chosen the above sales cycle.

In order to learn from the scratch, we have configured our own sales documents without copying to any existing configuration. The reason of not copying is more robust learning through encounter of errors.

Below is the glimpse of our own documents customized for our chosen sales cycle

Sales Order (YOR) --> Outbound Delivery (YOBD) --> Billing (YF2)

Configure SAP S4 HANA Sales Documents in 10 Minutes

In this post we will focus on the starting point of the sales cycles i.e. sales order.

1. Sales Organization Structure

Organization structure represents a certain entity within the organization with a certain function or role.

There are various organization structure elements in sales like – sales organizations, distribution channel, division etc. These organization structure plays a vital role in sales cycle.

Please check the below post to know the sales organization structure & their respective configuration in detail

Configure SAP Sales & Distribution Organization Structure in 5 Minutes

2. Sales scenarios in SAP S4 HANA SD

In this post we will create sales document for the below sales scenarios of SAP S4 HANA SD

  • Standard Sales Order
  • Inter-company Sales
  • Third Party Sales
  • Consignment Sales.

2.1 Standard Sales Order

Standard sales order is a part of standard sales cycles.

  • Here we create a sales order for a stock material which has all standard pricing etc.
  • This sales order is followed by a standard outbound delivery with standard movement type 601 to issue the good.
  • Then it is supported by standard billing to invoice the goods and to post the respective amount to the GL accounts.

Our standard sales cycles is given below

Sales Order (YOR) –> Outbound Delivery (YOBD) –> Billing (YF2)

2.1.1 Creation of Sales Order

As per our sales cycle let,s create the sales order of type YOR

Please check the full configuration and definition of different fields of sales order type YOR HERE

Start VA01

Input the below in the initial screen

  • Order Type as “YOR”
  • Sales Organization as “PA10”
  • Distribution Channel as “PA”
  • Division as “DC”
Picture : Creation of Sales Order

Press Enter

In the next screen fill the data as given below

  • Sold-to Party as “PA01CUST01” .Check the BP Customer Creation HERE
  • Ship-to Party as “PA01CUST01”
  • Cust. Reference as “FIRST Sales Order”
  • Cust. Ref. Date as today,s date “19.01.2022”
  • Material as “66”. Check the material creation HERE
  • Quantity as “10” PC
Picture : Creation of YOR Sales Order

We are recieving the below message

Picture : Warning in sales Order
2.1.1.1 Resolution of Error B1888

The reason of this error is currency USD is not delared as primary while it has been used twice.

To resolve this please see the screenshots below

SPRO –> ABAP Platform –> General settings –> Currencies –> Check Currency Codes

Picture : Unique Currency Issue Reason
Picture : Unique Currency Issue Solution

Now proceed further

Now no USD currency message

Picture : Sales Order Creation

Now click on “Display Header Details” as shown in the screenshot below

Picture : Display Header Details of the sales Order

“Sales” header tab will be presented as shown in the below screenshot

System has determined pricing procedure as “PPIN01 -PPN Pricing P”

Click HERE to check the configuration behind Pricing procedure determination in sales order

Pricing procedure is determined in the sales order through combination of sales area, document pricing procedure & customer pricing procedure.

--> Document Pricing Procedure is flowing from the sales order type (YOR) configuration. Click HERE for detail

--> Customer Pricing Procedure is flowing from the Customer master. Click HERE for detail

Now click on Header “Shipping” tab

Picture : Header “Shipping” tab

This Shipping condition is flowing from the BP customer master role ” FLCU01 Customer “. Please click HERE to check in detail

Now come back & double click on sales order line item to go to sales order line item details

Click on “shipping” tab

System will show the “Delivering Plant” & “Shipping point” as shown in the below screenshot

Picture : Delivering Plant & Outbound Shipping Point in Sales Order
2.1.1.2 Delivering Plant in Sales Order
Delivering plant plays a vital role in sales order. the below functions can not work in the absence of delivering plant

--> Tax determination in sales order

--> Availability Check

--> Shipping Point Determination

Delivering plant in sales order can be determined automatically based on the three sources.

Delivering plant default value in sales order comes either

--> From the customer-material info record 
                      or
--> From the Ship-to-Party customer master
                      or
--> From the material master record.

Note : We can manually change delivering plant value in the sales order (which is determined automatically)
2.1.1.3 Shipping Point Determination in Sales Order

Shipping point is very important in the shipping process. There must be a shipping point assigned in order for the system to be able to process the deliveries.

Shipping point is determined from the combination of 

--> Delivering Plant in Sales Order determined as explained above

--> Shipping condition from the customer master

--> Loading Group from the Material Master

Please check the below post for shipping point determination & other Logistics Execution (LE) details

Configure SAP S4 HANA Logistics Execution Organization Structure in 5 Minutes

2.1.1.4 Pricing in Sales Order

In the Sales order, the price of goods are determined by the pricing functions

The pricing is determined based on certain conditions like cost of materials, manufacturing, shipping, sales tax, etc.

We have used the below pricing conditions for our car business

--> PR00 (Gross Price) --> SAP Standard
--> Y007 (Customer Discount) --> Copy from Std K007
--> Y005 (Disc.Customer/Material) --> Copy from Std K005
--> YB00 (Discount (Value)) --Copy from Std RB00
--> YF00 (Freight) --Copy from Std KF00
--> YD00 (Freight) --Copy from Std HD00
--> UTXJ (Tax Jurisdict.Code) --> SAP Standard
--> JR1	(Tax Jur Code Level 1)
--> JR2	(Tax Jur Code Level 2)
--> JR3	(Tax Jur Code Level 3)
--> VPRS (Internal price) --> SAP Standard

These conditions are arranged in order which is called pricing procedure.

We have configured a customized Pricing Procedure “PPIN01- PPN Pricing Procedure” for our car business.

This pricing procedure is determined as given in the below picture

Picture : Pricing Procedure Determination

Please check the below post to read more

--> On the pricing conditions with each field explained.

--> On the Configuration of the Pricing Procedure

--> On determination of the Pricing Procedure

The Ultimate SAP S4 HANA Sales Pricing Guide with FAQ

in our sales order pricing procedure is determined based on the above.

Please see the screenshot of the pricing procedure & its conditions determined in our sales order.

To see the click on “Conditions” tab on line item level

Picture : Screen 1 of the Pricing Procedure Determined in our Sales Order

Picture : Screen 2 of the Pricing Procedure Determined in our Sales Order
Picture : Screen 3 of the Pricing Procedure Determined in our Sales Order

Now save the sales order

Picture : Standard Sales Order for customer is created

2.1.2 Creation of Outbound Delivery

Now we will create the outbound delivery based on this sales order

Go to VA02 and click on “Sales Document” and then click on “Deliver”

Picture : Outbound Delivery Creation
2.1.2.1 Copy-Control missing error for “YTAN” Item Category

System displayed “Copy Control” missing error for “YTAN” item category.

Picture : Copy Control” missing error for “YTAN” item category

Please click HERE to see how copying control was maintained to resolve this error

Again go to VA02 and click on “Sales Document” and then click on “Deliver”. System is showing now missing partner determination error.

2.1.2.2 Error VL445 -Partner Determination Missing

System is now showing partner determination error .Please see the below screenshot to see the exact error description.

Picture : Partner Determination Missing Error

To resolve this error we have assigned standard “LF” partner determination procedure to our delivery type “YOBD”

Now again go to VA02 and click on “Sales Document” and then click on “Deliver”

System has successfully created outbound delivery

Picture : Outbound Delivery creation
Picture : Delivery Type & Shipping Point in our OBD
For our newly created Outbound Delivery 
-->Delivery Type determined is "YOBD"
-->Item Category determined is "YTAN"
-->Shipping Point determined is "PA10"

Please check the below posts for detail configuration of the above 

--> Configure SAP S4 HANA Sales Documents in 10 Minutes

--> Configure SAP S4 HANA Logistics Execution Organization Structure in 5 Minutes
2.1.2.3 Post Goods Issue (PGI) 1st Step -Outbound Delivery Picking

Outbound delivery based goods issue is done in two steps. First step is picking of the goods and second step is Goods issue.

Start VL02N & input you delivery number . Press enter

Click on “Picking” tab

Picture : Outbound Delivery “Picking”

input picking qty same as delivery quantity 10

--> Please note that you need to pick full delivery quantity in order to be able to do goods issue (PGI).

--> If lesser quantity from delivery quantity is available for pick, then change the delivery qty equal to the qty available for picking.
2.1.2.4 Post Goods Issue (PGI) 2nd Step -Goods Issue.

As soon as outbound delivery pick quantity is entered , put-away status is changed from “A-Not Yet Picked” to “C-Fully Picked”

Picture : Outbound Delivery “Fully Picked”

Now press on “Post Goods Issue”.

Picture : Goods Issue Error M8147
2.1.2.4.1 Error Message M8147 : Account determination for entry PPIN GBB _ 3100 not possible

To resolve this error we have to configure SD-FI integration. Please check the below post for the further process

SAP SD FI Integration and Account Determination

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