Section 3 of 10

Sales Order Processing

What SAP determines automatically when an order is entered, how the availability check works, and what the item category controls.

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The sales order confirms a customer order. It is the starting point of the SD process, and what is decided here carries through to delivery and billing.

What is determined automatically

Entering a customer, a material and a quantity in VA01 causes SAP to derive a great deal. Understanding these determinations is what separates being able to use SD from merely typing into it.

Determinations at order entry
What is derivedFromConsequence
PricePricing procedure and condition recordsThe value of the sale
Ship-to party and payerPartner functions on the customer masterDestination, credit exposure
PlantCustomer-material info โ†’ customer master โ†’ material masterWhere goods ship from
Shipping pointShipping conditions, loading group and plantWhere shipping work is done
Route and datesShip-to country and region, transportation groupThe confirmed delivery date
Item categoryDocument type, item category group and othersOverall item behaviour
TaxDeparture and destination country, customer and material tax classificationTax amount

Item categories

The item category decides what a line means, and is among the most important control settings in SD.

What the item category controls
ControlEffect
PricingA free-of-charge item is not priced
DeliveryA service item creates no delivery
BillingA free sample is not billed
Availability checkA non-stock item is not checked
Cost postingWhether cost of sales is recognised

A standard item is TAN, a free item TANN, a text-only line TATX. The same material behaves differently under a different item category.

The availability check

The ATP (available-to-promise) check decides whether the requested date can actually be met. It does not just read current stock; it projects future receipts and issues.

What is included is set in the scope of check.

  • Stock on hand (whether quality inspection and blocked stock count is configurable)
  • Inward movements โ€” purchase order deliveries, production order receipts
  • Outward movements โ€” reservations from other orders and deliveries
  • Safety stock, which is often excluded so that it stays untouched

Where the requested date cannot be met, SAP proposes alternatives: a split with part on the requested date and the remainder later, or the full quantity on a later date. The answer is written into the schedule lines.

Order status

Order status reflects how far follow-on processing has got, and is held per item as well as per header.

StatusMeaning
Not processedNeither delivered nor billed
Partially processedPartly delivered or billed
Completely processedFully delivered and billed
CompletedManually closed, where the remainder will not ship

An order with quantity that will never ship stays in the backlog indefinitely. Where a customer cancels, set a reason for rejection on the item to take it out.

๐Ÿ“– Unfamiliar term? Look it up in the SAP glossary.

Check your understanding

Test what you just read.

Quiz 1

What is the Order Type for a standard Sales Order?

Quiz 2

The ATP (Availability to Promise) check reserves stock against a sales order.

Quiz 3

What is the purpose of the Incompletion Log in a sales order?

Quiz 4

The Item Category is automatically determined from the Order Type and the Item Category Group.

Quiz 5

What does transaction VA02 do?

Quiz 6

Arrange the sales order processing steps in the correct order.

Click items in the correct order