SAP SD-FI Integration Revenue Account Determination:The Integration between FI-SD will be happened through Account determination.

It is at the time of billing when the Actual integration will reflect from SD to FI. Once the billing is done the Invoice is automatically created in FI.(Doc.type is RV) The billing will flow from SD-FI as RV document(Sales Invoice= DR document). The Price will be picked through a condition technique which is defined in the pricing procedure by the SD consultants. Access sequence will help to pick the most appropriate price depending upon the parameters. Parameters here could be Material,Sales organisation,Customer etc... Prices will be defined from Most specific to most general for various combination of parameters in the access sequence. Data will hit appropriate GL Accounts which you mention in T.code:VKOA Sales Process: The sales order forms the basis of the sales process. Once a customer has placed an order, a sales order must be created at the start of the process. The sales order is generated at the distribution chain level. The ordered items can be from different divisions. The sales order is a document in SD and does not cause any postings in Financial Accounting. When the sales order has been entered, the system carries out an availability check for the required delivery date. On the day of shipping, an outbound delivery document is created. Billing for the delivery can only take place when the goods have been taken from the warehouse stock and posted as a goods issue. The warehouse management function is used for picking . A transfer order has to be created, which generates the pick order. The requested goods are taken from the warehouse and prepared for delivery. The goods to be delivered are posted as a goods issue . A goods issue document is created in MM, and an accounting document is created in FI so that the goods issue is posted to the correct G/L accounts. The last stage in the sales process is billing. A billing document is created in SD, and a printed invoice is sent to the customer. At the same time, a document is created in FI so that the receivables and revenues can be posted to the correct accounts. This is known in the IMG as "revenue account determination", but it covers a lot more than that (discounts, taxes etc). This is what determines how the financial impact of your SD Billing document is posted into the FI General Ledger. The integration is controlled both in SD and in FI. In SD there is a awesome area of configuration called the pricing procedures. The pricing procedure determines the final price quoted to the customer for a particular product. This could be a complicated calculation taking into account the base price, any special prices or discounts that may apply to that scenario, taxes, freight charges etc. These prices or charges are called 'condition types'. This condition technique is used in a number of areas of SAP. For now all we need to know is that each condition type is assigned to an account key (or in the case of rebates two account keys). You can assign multiple condition types to the same account key. There are a number of account keys that are pre-defined in the system. For example: ERF freight revenues ERL revenues

ERS sales deductions EVV cash settlement MWS sales tax Now we start getting to the integration by mapping the account keys to GL accounts. But it is not as simple as that. It can be as flexible (ie: as complex) as you want. Start off with the most simple approach. Generally if one is using a good sales / revenue reporting tool (eg: CO-PA) then one does not need a lot of flexibility and variety in the GL accounts that are posted to. The level of detail that you need in GL should be determined by your financial statement reporting requirements - you may end up with only one Revenue account - it is a good bet! So, taking the simple approach we would ignore most of the configuration possibilities : procedures, access sequences, condition tables etc (Yes it is that 'condition technique' kicking in again. Once you have worked through it once in one area and encounter it in another then hopefully you will be comfortable in knowing that most of the standard configuration can be left as is. ) We have to decide which access sequences we want to use (Five access sequences are defined in the standard SAP R/3 System). To keep it simple, let us assume we just use one - for example: the access sequence "chart of accounts/sales org./account keys". The chart of accounts part is standard in all account determinations, so let us look at the rest. This access sequence allows us to specify different GL accounts for different Sales Organizations. So if we had a billing document line item where the customer had some special deductions for one of the products he purchased, we could map accounts by Sales Organization. To make it even simpler a document is within one Sales Organization so we have an overall mapping as follows: SD Line Item Condition type SD Amount 1 Sales deduction for being such a nice guy Account Key $10 ERS Sales Organization GL Account 1000 800010 - Sales deductions for 1000

Sales deduction for special promotion on particular product $15 ERS Base Revenue $200 ERL 800000 - Revenue for Sales Org 1000 2 Total for item 1 $175 Base Revenue $100 ERL 1000 800000 - Revenue for Sales Org 1000

Total for item 2 $ 100 Document Total $ 275 So the invoice that the customer gets (and that you can view in SD) will look something like: Item (Note this is the SD Invoice line item) Item 1: $175 Item 2: $100 Total owing , 30 days terms etc: $275 Amount

The GL document posting that the system will make to FI will look something like this though: FI Line Item Debit / Credit Account Amount 1 2 Debit (PK=01) Credit (PK=50) Customer (AR Account) Revenue (GL Account) $ 275 -$ 300 $25

3 Debit (PK=40) Sales Deduction (GL Account) Balancing to 0 as all GL documents must.... $0

Note : There is no direct relation between an SD Line item and an FI Line Item - they are different things.

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

SAP SD MM Integration: 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. SD Integration points with other modules SD module is highly integrated with the other modules in SAP. Sales Order Integration Points Availability Check Credit Check Costing Tax Determination Transfer of Requirements Module MM FI CO/ MM FI PP/ MM

Delivery & Goods Issue

Integration Points Availability Check Credit Check Reduces stock Reduces Inventory $ Requirement Eliminated -

Module MM FI MM FI/ CO PP/ MM

Billing Integration Points Debit A/R Credit Revenue Updates G/ L Module FI/ CO FI/ CO 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 SD Transaction Code Flow: Inquiry / Document type IN Tcode for creation VA11,VA12,VA13. tables VBAK, VBAP FI FI FI FI Module MM

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.