SAP – SD

SAP Credit Management Credit Management is a process in which Company sells a product / service to customers on credit basis. The company collects payments from customer at a later time , after sale of product. The amount of credit fixed by a company for a customer is called credit limit. The customer can Purchase…

What is Accounting Key? The Accounting key enables the system to post amounts to certain types of revenue account. For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account. A condition type writes its value to a key established in the configuration outside the pricing…

What is Condition Exclusion Group? In any normal situation there could be more than one condition type in a pricing procedure offering a discount to a customer. Should the discounts be automatically determined, there is the risk that the customer will receive all the relevant discounts and thus purchase the product for a lower price…

What is Text Type? Text is a small piece of formatted or unformatted text that is used to show or store information in Master data and Transaction data. For example, a temperature sensitive material ( a medicine which needs low temperature storage area) needs to be kept under freezing temperature. One can configure a text…

SAP uses Condition Method technique to calculate taxes (except Withholding Tax) in the system. Tax Calculation Procedures (defined in the system) together with the Tax Codes are used in calculating the amount of tax. The Tax Code is the first step in the tax calculation procedure. The Tax code describes following – Tax type (Tax…

Not all items are relevant for pricing. The standard requirement in pricing procedure checks if the item is relevant for pricing . If this switch in the item category is set to blank, then the line items will not be relevant for pricing. An item category controls the overall behavior of an item. Item category…

What is Blocking Reason? Blocking reason is using to block bill creation for a customer. Blocking reason can be defined as per business requirements. After the creation of blocking reason, it has assigned to corresponding document types and used in document processing. Customer can also be blocked in Customer Master. There are multiple reasons to…

What is Item Category? An item category defines how a line item behaves in sales transaction. SAP Uses Item category to process a material differently in each sales document type. e.g. AFX – It is inquiry Item category ,it is not relevant for billing. AGX – It is quotation Item category ,it is not relevant…