Pricing is an important part of SAP, especially SAP Sales and Distribution. The SAP Pricing is based on Condition Technique. The word technique we use very often in our daily life but in SAP the Word Technique in SAP pricing always means prerequisite to determine the pricing based on some predefined conditions. The predefined conditions (based on Company needs) are stored in a sequential manner in a Table which called Condition Table , the Condition Tables are assigned to the Sequence and those sequence are assigned to a Condition Type and then the Procedure and the Condition Record. I will describe all these areas of configuration in this white paper.

The pricing in SAP follows a determination based on the Document Pricing Procedure , Customer Pricing Procedure and the Sales Area. Before designing any pricing procedure we have to understand the business process of the Company. The word business process I used because each and every pricing elements in the SAP process is very crucial and any wrong design in SAP Pricing  will have a financial impact for the Company.

Condition Technique for Pricing

As I said earlier that SAP Pricing uses a Condition Technique that means the SAP Pricing will follow certain Table, Sequence , Condition Type , Determination and a Record.

Condition Table

The pricing Condition Tables are a place where we maintained the combination of fields we  maintain the Condition Record. We will cover the Condition Record later in this paper. While arranging the fields in the Condition Table we have to consider the sequence of priority.

The Configuration Of Pricing Condition Table can be found under Sales and Distribution > Basic Function > Pricing > Price Control > Define Condition Table….

Before creating any new Condition Table we have look ,  to what extend we can use the existing Condition Table. To view the existing condition tables we can use the Display Condition Table oppsion.

If the existing condition tables are not satisfying your organization needs then we have to create a new table. SAP is existing tables are already numbered from 0001 to 500 so if we want to create a new condition table we have to create from 501 to 999. Before creating any new table we have to check the fields mentioned in Conditions: Allowed fields is available or not if not the Create a new Filed by using the New Entries tab , keep in mind we only can add fields from table KOMG, KOMK and KOMP.

ü  Enter any number between 501 to 999 with a name Description.

ü  Always suggestible to Copy the existing table and create the own table.

ü  Select the required fields for the condition table from the list permitted fields in the field catalog.

ü  Generate the Condition Table.

ü  Save the Condition table.

Define Credit Control area:

IMG à Enterprise structure à Definition à Financial accounting à Define Credit Control area.

Assign Credit control area to company code

IMG à Enterprise structure àAssignment à Financial accounting à Assign Company code to credit control area

Assign Company code to credit control area:

IMG à Enterprise structure àAssignment à Financial accounting à Assign Company code to credit control area

Define risk categories

Risk Category is a Place where we define the Customer Category. Risk Category control all credit check.

002 – High risk Category
003 – Medium Risk Category
004 – Low Risk Category

IMG à Financial Accounting (New)à Account Receivable and Accounts Payable à Credit Management à Credit control Account à Define Risk categories

Assign sales area to Credit control area:

IMG à Enterprise structure àAssignment àSales and Distribution à Assign Sales area to Credit Control area

Assign credit control to Customer master:

Here we assign the Credit Control Area in the Customer Master in Billing Tab.

Credit Group

The credit group groups together different business transactions which should be dealt with in the same manner with regard to the credit check.

You enter the credit groups when you configure the sales document types for credit management and define the automatic credit check.

IMG à Sales and Distribution à Basic functions à Credit Management/Risk Management à Credit Management à Define Credit Groups

Automatic Credit Control:
Here we define the automatic credit control. This matrix define the settings of the Credit check.

IMG à Sales And Distribution à  Basic Function à Credit Management / Rish Management à Credit Management à Define Automatic Credit Control.


Based on the Credit Control Area + Risk Category + Credit Group.

In the above screen you may see a column named as Update group. 

Update Groups

Basically it is a info structure where system stores all the data about credit limit. The credit relevant data is updated in a info structure, where it is accessed & updated. Thus each automatic credit control must be assigned an update group.

-          Update Group 000012

-          Update Group 000015: delivery & billing

-          Update Group 000018: sales order, delivery & billing.

Update group 000012, updates at:

-          Sales doc: increased order value

-          Delivery: decreased order value & increased delivery value

-          Billing: decreased delivery value & increased billing amount

-          Invoice: decreased billing amount & increased open item value.

Item check field

Indicates that the system carries out credit checks not only when you save the document but already when you enter single items or header data.


Reaction Filed:
Is the place where we maintain how the system should react like error , warning, message.



Maintain Credit limit for the Customer
Use transaction code FD32 to maintain credit limit for the customer.
In this t code we maintain the credit limit of the customer. Here we can also maintain other details like address , status which states that customers actual limit etc.
Payment history tab means the payment made by the customer.

Release Blocked Sales Order/ Deliveries:
-          VKM3: sales order
-          VKM5: delivery
-          VKM4:    both

One can see the offending document. Note on the right hand side, the 'Status Field'. This shows the check, the doc failed. If this field is empty, the doc did not fail a credit check, even though it may be in the list of SD documents that are "required to be released".

To release the doc, one indicates the doc to be released and then clicks on the 'Release Button'. The result is the offending doc entry, highlighted green. One then proceeds to save, after which you are informed the doc number has been released.

-          Net value with sub total 'A', in pricing proc, will be the basis for this.

Credit Management :
Credit Management is important part in any business. To minimize the credit risk , every company has certain customer category and based on that the credit limit  and the risk associate with that can be fixed.
The Credit Management is based on a Credit Control Area , customer risk category and the document type.
The Credit Management basically controls the credit limit to the customer and the dynamic update with approval.
Credit Control Area is a organization unit. The credit Control Area can be Centralized or Di centralized.

    Centralized :  Centralized Credit Control Area is One Credit Control Area which is assigned with multiple company code.

 Di centralized : The  Di centralized Credit Control Area is one Credit Control area is assigned to one company code.

CREDIT MANAGEMENT
A credit limit may be a customer's credit limit, which is the permitted limit of value of open items, such as invoices not yet paid, plus the value of open sales orders.
-          The credit limit is the total combined value of the following documents:
-          Net value of sales order
-          Open Sales order: order created, but not delivered
-          Open deliveries: delivered, but not invoiced
-          Open billing doc: value of billing doc, which has not yet been forwarded to accounting
-          Open items: forwarded to accounting, but not settled.
Types of Credit Check
-          Simple Credit Check
-          Automatic Credit Check
o        Static
o        Dynamic
Simple Credit Check:
SPRO- IMG- SD- Basic Functions- Credit Mgmt/ Risk Mgmt- Simple Credit Check- Assign Credit Check to Doc Types.
-          Based on sales doc types
-          It will check all the above-mentioned docs & if the credit limit exceeds, the system responds in the way defined by you in the configuration menu.
-          Cannot differentiate according to customer
3 ways to Control the Simple Credit Check:
-          A: warning
-          B: error message: the doc cannot be saved
-          C: warning message with delivery block: the doc can be saved but is automatically blocked for delivery.
Automatic Credit Check:
This credit mgmt control is maintained by using the automatic credit control functionality. The automatic credit control divides the sales doc types, the delivery doc types, & goods issue into specific credit groups. It also uses the customer's risk category as assigned to the CMD of the payer & assigns an outcome proc to the combination of the above 2 objects, i.e. the credit group & customer risk category along with the credit control area. The definition of customer's risk category is carried out in the fin accounting module.
A customer's risk category is a grouping category that controls the credit check when automatic credit control takes place. Thus one can assign high-risk customers to risk category for e.g. A01, medium risk to B01 and low risk to C01.
Automatic credit check divides customers in to 3 categories:
-          High-risk customers,
-          Low risk customers &
-          Medium risk customers.
A credit check can only occur at 3 places: Credit Group
-          Sales order: for high risk customers
-          Delivery: for medium risk customers
-          Goods Issue: for low risk customers.

This whitepaper will help to know the next or the previous working day based on calendar.

The calender may be the Ship to Calender or any.

SAP provided Function Module " DATE_CONVERT_TO_FACTORYDATE " can be used to know the next or the previous working day based on the Calender ID. Its also RFC enabled.

The " Correct Option " means if we are looking + or - side. + means the next working day and - means the previous working day.

The date format as the server format. And the Factory Calendar Id is the place where we can insert the Calender ID.

The FM doesn't take any default ID.

For Example :

If we want in sales order the confirm date to be overwrite and should not fall in holiday of Sip to Calender.
We can do this by writing a code in MV45AFZZ in VBEP section.

 ASAP Methodology

ASAP

ASAP stands for Accelerated SAP. Its purpose is to help design SAP

implementation in the most efficient manner possible. Its goal is to effectively

optimize time, people, quality and other resources, using a proven methodology to

implementation.

ASAP focuses on tools and training, wrapped up in a five-phase process oriented

road map for guiding implementation.

The road map is composed of five well-known consecutive phases:

• Phase 1 Project Preparation

• Phase 2 Business Blueprint

• Phase 3 Realization

• Phase 4 Final Preparation

• Phase 5 Go-Live and support

In today's post we will discuss the first phase.

Phase 1 : Project Preparation

Phase 1 initiates with a retrieval of information and resources. It is an important

time to assemble the necessary components for the implementation. Some

important milestones that need to be accomplished for phase 1 include

• Obtaining senior-level management/stakeholder support

• identifying clear project objectives

• architect an efficient decision-making process

• creating an environment suitable for change and re-engineering

• building a qualified and capable project team.

Senior level management support:

One of the most important milestones with phase 1 of ASAP is the full agreement

and cooperation of the important company decision-makers - key stake holders

and others. Their backing and support is crucial for a successful implementation.

Clear project objectives:

be concise in defining what your objectives and expectations are for this venture.

Vague or unclear notions of what you hope to obtain with SAP will handicap the

implementation process. Also make sure that your expectations are reasonable

considering your company's resources. It is essential to have clearly defined

ideas, goals and project plans devised before moving forward.

An efficient decision making process:

One obstacle that often stalls implementation is a poorly constructed decision-

making process. Before embarking on this venture, individuals need to be clearly

identified. Decide now who is responsible for different decisions along the way.

From day one, the implementation decision makers and project leaders from

each area must be aware of the onus placed on them to return good decisions

quickly.

Environment suitable for change and re engineering:Your team must be willing to

accept that, along with new SAP software, things are going to change, the

business will change, and information technology enabling the business will

change as well. By implementing SAP, you will essentially redesign your current

practices to model more efficient or predefined best business practices as

espoused by SAP. Resistance to this change will impede the progress of your

implementation.

ASAP- Second Phase- Business Blueprint

SAP has defined a business blueprint phase to help extract pertinent information

about your company that is necessary for implementation. These blueprints are in

the form of questionnaires that are designed to probe for information that

uncovers how your company does business. As such, they also serve to

document the implementation. Each business blueprint document essentially

outlines your future business processes and business requirements. The kinds

of questions asked are germane to the particular business function, as seen in

the following sample questions:

1) What information do you capture on a purchase order?

2) What information is required to complete a purchase order?

Accelerated SAP question and answer database:

The question and answer database (QADB) is a simple although aging tool

designed to facilitate the creation and maintenance of your business blueprint.

This database stores the questions and the answers and serves as the heart of

your blue print. Customers are provided with a customer input template for each

application that collects the data. The question and answer format is standard

across applications to facilitate easier use by the project team.

Issues database:

Another tool used in the blueprinting phase is the issues database. This

database stores any open concerns and pending issues that relate to the

implementation. Centrally storing this information assists in gathering and then

managing issues to resolution, so that important matters do not fall through the

cracks. You can then track the issues in database, assign them to team

members, and update the database accordingly.

ASAP Phase- 3 - Realization:

With the completion of the business in phase 2, "functional" experts are now ready

to begin configuring SAP. The Realization phase is broken in to two parts.

1) Your SAP consulting team helps you configure your baseline system, called the

baseline configuration.

2) Your implementation project team fine-tunes that system to meet all your

business and process requirements as part of the fine tuning configuration.

The initial configuration completed during the base line configuration is based on

the information that you provided in your blueprint document. The remaining

approximately 20% of your configuration that was not tackled during the baseline

configuration is completed during the fine tuning configuration. Fine tuning usually

deals with the exceptions that are not covered in baseline configuration. This final

bit of tweaking represents the work necessary to fit your special needs.

Configuration Testing:

With the help of your SAP consulting team, you segregate your business

processes into cycles of related business flows. The cycles serve as independent

units that enable you to test specific parts of the business process. You can also

work through configuring the SAP implementation guide (IMG). A tool used to

assist you in configuring your SAP system in a step by step manner.

Knowledge Transfer:

As the configuration phase comes to a close, it becomes necessary for the

Project team to be self-sufficient in their knowledge of the configuration of your

SAP system. Knowledge transfer to the configuration team tasked with system

maintenance (that is, maintenance of the business processes after Go-live)

needs to be completed at this time.

In addition, the end users tasked with actually using the system for day-to-day

business purposes must be trained.

ASAP Methodology - Phase 4 - Final Preparation:

As phase 3 merges into phase 4, you should find yourselves not only in the midst

of SAP training, but also in the midst of rigorous functional and stress testing.

Phase 4 also concentrates on the fine tuning of your configuration before Go-live

and more importantly, the migration of data from your old system or systems to

SAP.

Workload testing (including peak volume, daily load, and other forms of stress

testing), and integration or functional testing are conducted to ensure the accuracy

of your data and the stability of your SAP system. Because you should have begun

testing back in phase 2, you do not have too far to go until Go-live. Now is an

important time to perform preventative maintenance checks to ensure optimal

performance at your SAP system.

At the conclusion of phase 4, take time to plan and document a Go-live strategy.

Preparation for Go-live means preparing for your end-users questions as they

start actively working on the new SAP system.

ASAP - Phase 5 - Go-live and Support:

The Go-live milestone is itself is easy to achieve; a smooth and uneventful Go-live

is another matter altogether. Preparation is the key, including attention to what-if

scenarios related not only to the individual business processes deployed but also

to the functioning of technology underpinning these business processes and

preparation for ongoing support, including maintenance contracts and

documented processes and procedures are essential.

Basic SAP

What is ERP?

ERP is a package with the techniques and concepts for the integrated management of business as a whole, for effective use of management resources, to improve the efficiency of an enterprise. Initially, ERP was targeted for manufacturing industry mainly for planning and managing core business like production and financial market. As the growth and merits of ERP package ERP software is designed for basic process of a company from manufacturing to small shops with a target of integrating information      across the company.

Different types of ERP?

SAP, BAAN, JD Edwards, Oracle Financials, Siebel, PeopleSoft. Among all the ERP’s most of the companies implemented or trying to implement SAP because of number of advantages aver other ERP packages.

What is SAP? - SAP is the name of the company founded in 1972 under the German name (Systems, Applications, and Products in Data Processing) is the leading ERP (Enterprise Resource Planning) software package.

Explain the concept of “Business Content” in SAP Business Information Warehouse?

Business Content is a pre-configured set of role and task-relevant information models based on consistent Metadata in the SAP Business Information Warehouse. Business Content provides selected roles within a company with the information they need to carry out their tasks. These information models essentially contain roles, workbooks, queries, InfoSources, InfoCubes, key figures, characteristics, update rules and extractors for SAP R/3, mySAP.com Business Applications and other selected applications.

Why do you usually choose to implement SAP?

There are number of technical reasons numbers of companies are planning to implement SAP. It’s highly configurable, highly secure data handling, min data redundancy, max data consistency, you can capitalize on economics of sales like purchasing, tight integration-cross function.

Can BW run without a SAP R/3 implementation?

Certainly. You can run BW without R/3 implementation. You can use pre-defined business content in BW using your non-SAP data. Here you simply need to map the transfer structures associated with BW data sources (InfoCubes, ODS tables) to the inbound data files or use 3rd part tool to connect your flat files and other data sources and load data in BW. Several third party ETL products such as Acta, Infomatica, DataStage and others will have been certified to load data in BW.

What is IDES?

International Demonstration and Education System. A sample application provided for faster learning and implementation.

What is WF and its importance?

Business Work Flow: Tool for automatic control and execution of cross-application processes. This involves coordinating the persons involved, the work steps required, the data, which needs to be processed (business objects). The main advantage is reduction in throughput times and the costs involved in managing business processes. Transparency and quality are enhanced by its use.

What is SAP R/3?

A third generation set of highly integrated software modules that performs common business function based on multinational leading practice. Takes care of any enterprise however diverse in operation, spread over the world. In R/3 system all the three servers like presentation, application server and database server are located at different system.

What are presentation, application and database servers in SAP R/3?

The application layer of an R/3 System is made up of the application servers and the message server.      Application programs in an R/3 System are run on application servers. The application servers communicate with the presentation components, the database, and also with each other, using the message server. All the data are stored in a centralized server. This server is called database server.

What should be the approach for writing a BDC program?

Convert the legacy system data to a flat file and convert flat file into internal table. Transfer the flat file into sap system called “sap data transfer”. Call transaction(Write the program explicitly) or create sessions (sessions are created and processed ,if success data will transfer).

Explain open SQL vs native SQL?

ABAP Native SQL allows you to include database-specific SQL statements in an ABAP program. Most ABAP programs containing database-specific SQL statements do not run with different databases. If different databases are involved, use Open SQL. To execute ABAP Native SQL in an ABAP program, use the statement EXEC. Open SQL (Subset of standard SQL statements), allows you to access all database tables available in the R/3 System, regardless of the manufacturer. To avoid conflicts between database tables and to keep ABAP programs independent from the database system used, SAP has generated its own set of SQL statements known as Open SQL.

What are datasets?

The sequential files (processed on application server) are called datasets. They are used for file handling in SAP.

What are internal tables check table, value table, and transparent table?

Internal table: It is a standard data type object, which exists only during the runtime of the program. Check table: Check table will be at field level checking. Value table: Value table will be at domain level checking ex: scarr table is check table for carrid. Transparent table: - Exists with the same structure both in dictionary as well as in database exactly with the same data and fields.

What are the major benefits of reporting with BW over R/3?

Would it be sufficient just to Web-enable R/3 Reports? - Performance — Heavy reporting along with regular OLTP transactions can produce a lot of load both on the R/3 and the database (cpu, memory, disks, etc). Just take a look at the load put on your system during a month end, quarter end, or year-end — now imagine that occurring even more frequently. Data analysis — BW uses a Data Warehouse and OLAP concepts for storing and analyzing data, where R/3 was designed for transaction processing. With a lot of work you can get the same analysis out of R/3 but most likely would be easier from a BW.

How can an ERP such as SAP help a business owner learn more about how business operates? - In order to use an ERP system, a

business person must understand the business processes and how they work together from one functional area to the other. This knowledge gives the student a much deeper understanding of how a business operates. Using SAP as a tool to learn about ERP systems will require that the

people understand the business processes and how they integrate.

What is the difference between OLAP and Data Mining?

OLAP - On line Analytical processing is a reporting tool configured to understand your database schema ,composition facts and dimensions . By simple point-n-clicking, a user can run any number of canned or user-designed reports without having to know anything of SQL or the schema. Because of that prior configuration, the OLAP engine “builds” and executes the appropriate SQL. Mining is to build the application to specifically look at detailed analyses, often algorithmic; even more often misappropriate called “reporting.

What is “Extended Star Schema” and how did it emerge?

The Star Schema consists of the Dimension Tables and the Fact Table. The Master Data related tables are kept in separate tables, which has reference to the characteristics in the dimension table(s). These separate tables for master data is termed as the Extended Star Schema.

Define Meta data, Master data and Transaction data

Meta Data: Data that describes the structure of data or MetaObjects is called Metadata. In other words data about data is known as Meta Data. Master Data: Master data is data that remains unchanged over a long period of time. It contains information that is always needed in the same way. Characteristics can bear master data in BW. With master data you are dealing with attributes, texts or      hierarchies. Transaction data: Data relating to the day-to-day transactions is the Transaction data.

Name some drawbacks of SAP

Interfaces are huge problem, Determine where master data resides, Expensive, very complex, demands highly trained staff, lengthy implementation time.

What is Bex?

Bex stands for Business Explorer. Bex enables end user to locate reports, view reports, analyze information and can execute queries. The queries in workbook can be saved to there respective roles in the Bex browser. Bex has the following components: Bex Browser, Bex analyzer, Bex Map, Bex Web.

What are variables?

Variables are parameters of a query that are set in the parameter query definition and are not filled with values until the queries are inserted into workbooks. There are different types of variables which are used in different application: Characteristics variables, Hierarchies and hierarchy node, Texts, Formulas, Processing types, User entry/Default type, Replacment Path.

What is AWB?. What is its purpose? - AWB stands forAdministrator WorkBench. AWB is a tool for controlling, monitoring and maintaining all the processes connected with data staging and processing in the business information whearhousing.

What is the significance of ODS in BIW?

An ODS Object serves to store consolidated and debugged transaction data on a document level (atomic level). It describes a consolidated dataset from one or more InfoSources. This dataset can be analyzed with a BEx Query or InfoSet Query. The data of an ODS Object can be updated with a delta update into InfoCubes and/or other ODS Objects in the same system or across systems. In contrast to multi-dimensional data storage with InfoCubes, the data in ODS Objects is stored in transparent, flat database tables.

What are the different types of source system? -

SAP R/3 Source Systems, SAP BW, Flat Files and External Systems.

What is Extractor?

Extractors is a data retrieval mechanisms in the SAP source system. Which can fill the extract structure of a data source with the data from the SAP source system datasets. The extractor may be able to supply data to more fields than exist in the extract structure.