Product Hierarchy

Being useful for evaluation, pricing and reporting purposes, a ‘Product Hierarchy’ is an alphanumeric character string consisting of a maximum of 18 characters. It thus defines the product and its composition.

We maintain product hierarchy in the material master through following;

SPRO-> IMG-> Logistics – General-> Material Master-> Settings for Key Fields-> Data Relevant to Sales and Distribution-> Define Product Hierarchies

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Basic Overview of SD-MM Integration

The goods/services from a plant can be sold by one or more sales organizations. It is also possible that single sales organizations sells goods/services for several plants. When the sales organizations sells for more than one plant belonging to one or more Company Codes, then this is called inter-company sales, and will require you to make some special configurations in the system. A sales organization, attached to a Company Code, is further divided into distribution channels and divisions in SD. A division typically represents a product line, and is assigned to a material in the material master.

Edit on Open Purchasing Documents for Assets

A new system edit in AS02 – Change Asset checks for open (including held) purchasing documents when the account assignment is being changed.

There are two messages that may be received:

  • Asset cannot be changed. Purchase Requisition exists.
  • Asset cannot be changed. Purchase Order exists.

The purchasing document line must be deleted before the asset master can be updated, and a new line must be added to the purchasing document after the asset master has been changed to derive the new account assignment. In the event a purchase order was created with reference to a purchase requisition, the message will indicate a requisition exists, but the line item on both documents must be deleted before the asset master can be updated. Read more

Sales Order in SAP SD

A ‘Sales Order’ is a contract between your Sales Organization and a Customer for supply of specified goods and/services over a specified timeframe and in an agreed upon quantity or unit. All the relevant information from the customer master record and the material master record, for a specific sales area, are copied to the sales order. The sales order may be created with reference to a ‘preceding document’ such as a quotation, then all the initial data from the preceding document is copied to the sales order. Read more

Reversal of Documents in SAP

If you need to change some of the accounting information relating to an already posted document,you can only achieve this by ‘Reversing’ the original document and posting a new one with the correct information. However, reversal is possible only when:

  • The origin of the document is in FI (not through SD or MM, etc.)
  • The information such as business area, cost center, etc., is still valid (that you have not deleted these business objects)
  • The original document has no cleared items
  • The document relates only to the line items of customer/vendor/GL

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Benefits of the EDI Processes

EDI is the electronic exchange of business documents between the computer systems of business partners, using a standard format over a communication network. EDI is also called paperless exchange.

Implementing EDI benefits both the sender and the receiver. It is a mutual effort, and its benefits are maximized by sharing information in a timely manner. The benefits include

  • Reduced data entry errors. EDI does not involve data entry at multiple points. In the traditional process, a sender creates a purchase order on the system, prints the order, and then faxes or mails it to
    a trading partner. The receiver then rekeys the same information on his or her computer. The process is prone to data entry errors. This procedure is repeated when invoicing takes place. With EDI, data goes directly from one computer to another without involving a human being.
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    Direct & Indirect Quotation

    It is possible to maintain the exchange rates, in SAP, by either of these two methods. What determines the use of a particular type of quotation is the business transaction or the market standard (of that country).
    SAP adopts two prefixes to differentiate direct and indirect quotes during entering/displaying a transaction:

    ‘’—Blank, no prefix. Used in Direct Quotation
    ‘/’—Used in Indirect Quotation Read more