SAP SD & MM Integration:

It is very important for both SD & MM consultant to understand the SD-MM integration in SAP. Appended below is the step by step approach towards this customization.

All standard SAP Item category groups are available in pop box under the field Item category group of material master in Sales Org View 2. Depending on the item category group selected in the material master, the system automatically proposes an item category in the sales document.

Item category group (NORM or BANS) is nothing but grouping of different materials based on item categories (TAS or TAN) usedduring the processing of sales documents.

NORM (Standard Items),

BANS (Third Party Items),

NLAG (Non Stock Material),

VERP (Packaging),

DEIN (Service without delivery) are some of the examples of Item category group available in the standard SAP.

These all item category group are assigned to different material types for item category determination from the SD view.

With reference to any of this, we can create new Item category group or groups and same needs to be assigned to required material type in SPRO.

This assignment will be as follows:-

Menu Path:

Sales and Distribution -> Billing -> Billing documents -> Maintain Copying Control for Billing Documents -> Copying Control: Delivery to Billing Document -> Item,

Define Item Categories

Define Item Category Groups

Define default values for Material Types

Define item category usageAssign Item Category

SAP SD: Normal Sales Order Cycle:-

Normal Sales Order Cycle:-
Step 1: Sales Document Type:
IMG > Sales and Distribution > Sales > Sales Documents >Sales Document Header:


1. Sales Document Type:The sales document types represent the different business transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order type, always copy as with reference to similar sales order. If possible use standard sales order.

2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.

3. Assign Sales Area To Sales Document Types:
A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these, else Sales Order creation will give error.
B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required Sales Area. This will minimize selection of Sales Order Type as per sales area.

Sales Document Item:

1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as from standard & maintain New.

2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category
Schedule Line:


1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new, copy as from standard & maintain New.

2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item Category + MRP Type / No MRP Type.

Step 2:IMG > Logistic Execution > Shipping > Deliveries >

1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Item Categories for Deliveries: If possible use Standard Item Categories for Delivery Type. Incase if required to create new, copy as from standard & maintain New.

3. Define Number Ranges for Deliveries: Ensure to maintain number range.

Step 3:IMG > Sales and Distribution > Billing >

1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Number Range For Billing Documents: Ensure to maintain number range.

3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to Billing, Deliver to Billing, etc.