SD-MM Integration

In the standard SAP, with the standard configuration setting, for both Material Management as well as for Sales & Distribution, when we go for third party processing with SD components the systems take care of all the transaction automatically. Hence no extra efforts are required by consultants to meet the client requirement. But, it is very common that there are many differences in the business processes from client to client. In addition to Standard, there may be the requirement of creating a new material type, new sales document type, new item category or new item category group to meet any client specific requirement.

SD-MM Integration:

Where third party process with SD component is used in the business and client asks, in addition to standard SAP setting, for customization of any of the parameters mentioned above, and then it becomes 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) used during 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 usage
Assign Item Category