Product Selection

Purpose

In the standard order processing cycle, a customer requests a specific product that you then ship. In reality, however, there are situations where you want to substitute the product ordered with an alternative, for example when products are repackaged for promotional purposes (for Christmas, or with free prizes or coupons).

With the product selection functions in the R/3 System, you can flexibly manage product substitution. Based on your priorities for the customer account and restrictions imposed by the customer, you can ship a promotional item when the customer requests a standard one.

Integration

Product selection functions rely heavily on the condition technique and material determination.

Features

The standard available-to-promise (ATP) check is available to help you determine exactly what to ship. A check is carried out:

• At order entry

This ensures that sufficient quantities of the product acceptable to the customer are available to meet the requested delivery date.

• At picking

This ensures that your preferred substitute is shipped. If there is insufficient stock of the preferred item, the system fulfills the order with additional alternative items.

Product selection can be manual or automatic. Depending on how you configure your system, you can:

• Produce a list of alternative products from which the order entry person can choose
• Automatically select products according to their availability and priority

For tracking purposes, the system stores data about what the customer has ordered. You can use this information as a reference, or for printing invoices and packing lists.

Evaluating the Substitution Procedure SD Product Selection

Before setting up product selection, you must determine how substitution is to be carried out, as well as evaluate the process flow from beginning to end. Here are several questions to help you prepare for setting up product selection functions:

• How are substitute products determined?

By the product entered in the order, or by material group?

• How many substitutes are offered for each product?

How are the substitutes prioritized?

• Are there any product attributes that would cause a customer to refuse or accept a substitute?

For example, coupons, packaging, or special offers.

• Are products substituted consistently, or does the substitution process change according to dates or seasons?

What is the date range validity for the substitution rules?

For example, material A is substituted with material B in November and December. The rest of the year, it is substituted with material C.

• What number is printed on documents?

The product number entered in the order, the substitute product number, or both?

Is this consistent for all documents, for example, order confirmations, deliveries, and invoices?

• How is pricing performed when a product is substituted?

Are prices based on the product entered or the substitute product?

• Are standard item and schedule line categories suitable for your company’s product selection?

The standard item categories are TAX (main item) and TAPS (sub-item).

Their schedule line categories are CX and PP respectively.

• Should the system redetermine product selection when you copy data from document to document?

For example, you may want a new product selection when copying from sales order to delivery, but not from sales order to return.

Configuring Product Selection SD Product Selection

Product selection is controlled by various Customizing activities, mainly for material determination.

The following topics explain the configuration procedure step by step. Activities have been split up to make them easier to perform.

Setting the Condition Technique SD Product Selection

Prerequisite

Product selection uses the condition technique to determine substitutes for a material entered in the order. Review the field catalog, condition tables, access sequences, and condition types in the standard system to determine if they fit your company's version of product selection. If not, you can modify the field catalog and create condition tables, access sequences, and condition types to meet your requirements.

Procedures

Modify the field catalog (OV26)

The field catalog for material determination contains fields for determining substitute products. Review these fields in the standard catalog. If your company determines substitutes based on a characteristic not listed as a viable field in the catalog, simply add it:

1. Add the new field to the user include structure:

• Header data KOMKDZ
• Item data KOMPDZ.

2. Add code to the routines for assigning values to the new fields in order processing in program MV45AFZA. Use user exits:

• USEREXIT_MOVE_FIELD_TO_KOMKD (header fields)
• USEREXIT_MOVE_FIELD_TO_KOMPD (item fields)

3. Add the new field to the field catalog (Customizing activity Basic Functions ® Material Determination ® Maintain prerequisites for material determination ® Maintain field catalog).

Create a condition table for substitution (OV16)

You can create a table in the system based on how you perform product substitution. The condition table serves as the format and eventual storage area where detailed condition records on product substitution mappings are stored.

To create a table, perform the Customizing activity Maintain prerequisites for material determination ® Create condition tables:

1. Key in a table number (using a number greater than 500), or leave the table field blank for the system to assign the next available number.
2. Select the appropriate fields to be included in the table.
3. Save and generate the table.

Create an access sequence for substitution (OV11)

You can create an access sequence in the system based on how you perform product substitution. The system uses the access sequence to search for valid condition records within the condition tables.

To create an access sequence, perform the Customizing activity Maintain prerequisites for material determination ® Maintain access sequences:

1. Choose New entries.

Enter a code and description for the access sequence.

2. Save and choose Back to return to the main screen.
3. Select the new entry and choose Accesses.
4. Choose New entries.

Enter an access level, the condition table number and, if necessary, a requirement. Add additional tables if needed.

5. Save and choose Back.
6. Select the new entry and choose Fields.

Enter a direct value or select the initial value indicator.

7. Save and and choose Back.
8. Select the new access sequence and choose Utilities.

Complete the access sequence fields with the new access sequence number.

Create condition type and assign access sequence (OV12)

You can create a condition type in the system based on how you perform product substitution. A condition type directs the system to the access sequence and eventual condition table containing the condition records that are used to determine substitutes.

To create a condition type, perform the Customizing activity Maintain prerequisites for material determination ® Define condition types:

1. Choose New entries

Enter a code and description for the condition type.

2. Assign a valid access sequence and identify the rule to be used to propose the from and to validity dates.
3. Save.

Creating Product Substitution Procedures SD Product Selection

Prerequisite

Substitution procedures contain condition types that direct the system to the access sequence and eventual condition table containing the condition records that are used to determine product substitutes.

Procedure

To create a procedure, perform the Customizing activity Basic Functions ® Material Determination ® Maintain prerequisites for material determination ® Maintain procedures (transaction OV13):

1. Choose New entries.

Enter a code and description for the procedure.

2. Save and choose Back to return to the main screen.
3. Select the new entry and choose Control.
4. Choose New entries.

Enter an access level, control number, the condition type, and, if necessary, a requirement. Add additional condition types if needed.

5. Save and choose Back to return to the main screen.

Assigning Procedures to Sales Document Types SD Product Selection

Prerequisite

The system uses the document type to decide what data in the sales document to use for determining substitute products. The link between procedure and document type directs the system to the selection records that are processed during order entry.

By making this assignment, you are essentially "turning on" substitution for specific document types. When you leave the assignment field blank, the system does not check for substitutes even if the records exist.

Procedure

To assign a product selection determination procedure to document types, perform the Customizing activity Basic Functions ® Material Determination ® Maintain prerequisites for material determination ® Assign procedures to sales document types (transaction OV14).

Creating Substitution Reasons SD Product Selection

Prerequisite

The substitution reason directs how the system performs product selection. With this reason, you can specify, for example:

• What products should be printed in documents, such as an order confirmation
• Whether the selected products should be reevaluated when the document is referenced, for instance when a delivery is created
• Whether the selected products should be copied directly from the source document, from returns for example.

Procedure

To create a substitution reason, perform the Customizing activity Basic Functions ® Material Determination ® Maintain prerequisites for material determination ® Define substitution reasons (transaction OVRQ):

1. Choose New entries.

Enter a code and description for the substitution reason.

2. Select the Entry indicator if you want the original material (not substitutes) to be printed in documents.
3. Leave the Warning and Strategy indicators blank.

Do not mark these indicators, or you will not be able to perform automatic product selection based on ATP.

4. Assign either outcome A or B depending on your preferences for the following:

Substitution Outcome Reason Codes

	Outcome
	A	B
Create as sub-items	Yes	Yes
Repeat selection in delivery	Yes	No

You must choose either A or B. Do not leave this field blank.

Integration

One of the most important decisions that you have to make about the product selection process is whether or not substitutions determined in the order are to be redetermined in the delivery.

OUTCOME A

When you assign outcome A to a substitution reason, note the following special processing features and constraints:

• The system redetermines product substitutions when copying them from sales documents to deliveries.
• Rush orders are not supported.
• Main item and sub-items must be carried through from the sales document, to the delivery, to the billing document.
• If you use listings and exclusions in the sales document process, the system does not take these listings/exclusions into account when it redetermines substitutions in the delivery.
• The system uses only the copy rules associated with the main item when transferring data from document to document.To properly transfer the sub-item from order to delivery, you must assign copy rule 110 to it.
• Item category usage indicator PSHP is used for the main item, and PSEL for the sub-item.

OUTCOME B

When you assign outcome B to a substitution reason, note the following special processing features and constraints:

• The system does not redetermine product substitutions when copying them from sales documents to the deliveries. All items are directly copied.
• Rush orders are fully supported.
• Main item and sub-items do not have to be carried through from the sales document, to the delivery, to the billing document.
• If listings and exclusions are used in the sales document process, the changes made as a result influence the delivery documents.
• The system takes copy rules for both the main and sub-items when transferring data from document to document.
• Item category usage indicator PSA1 is used for the main item, and PSA2 for the sub-item

In this example, product selection is performed in the order.

If you select outcome A, the system repeats product selection in the delivery. At the time the delivery is created, there is more inventory available for alternative 1. In this case, the system ignores the second alternative and confirms the entire requested quantity of the first alternative.

If you select outcome B, the product selection from the order is copied directly from to the delivery. There is no new ATP check.

Substitution Outcome Scenario

Setting Item Categories SD Product Selection

There are two separate item categories in sales documents for product selection. The item category TAX contains specifications for the main item (original product). The other, TAPS, contains specifications for the sub-items (substitute product).

Review the item category configurations in the standard system. If these do not meet your requirements, perform the activities in the following topics to modify the item category configuration, or create your own categories. Note that unless your product selection procedure requires that pricing be done at the main item instead of the sub-item, it is not necessary to create new item categories.

The following examples detail how pricing is carried out at the main item level and sub-item level for product selection.

In this first example, the price for the order is determined based on the price condition records for the main item only. You have set the sub-item category to be irrelevant for pricing, so the system does not determine a price for it. Since both the main item and the sub-item categories are relevant for billing, these prices (or lack of price) are carried through to the invoice and billed accordingly.

Pricing at the Main Item

In this second example, the price for the order is determined based on the price condition records for the sub-items. You have set the main item category to be irrelevant for pricing, so the system does not determine a price for it. Since both the main item and the sub-item categories are relevant for billing, the prices (or lack of price) are carried through to the invoice and billed accordingly.

Pricing at the Sub-item

Configuring Sales Document Item Categories SD Product Selection

Prerequisites

Item categories contain instructions about the attributes of the line item to which they are assigned. Review the standard sales document item categories for product selection. If you decide that these do not meet your business requirements, for example if you require that pricing be done at the sub-item level rather than the main item level, create new sales document item categories for the main and sub-items.

Procedures

We recommend that you copy, then change the standard sales document item categories instead of creating them from scratch. To copy categories, perform the Customizing activity Sales ® Sales Documents ® Sales Document Item ® Define item categories (transaction VOV7).

To copy the main item category, select the entry TAX and choose Copy. Overwrite the key and description with your sales document item category. Make any additional changes and save.

To copy the sub-item category, select the entry TAPS and choose Copy. Overwrite the key and description with your sales document item category. Make any additional changes and save.

Schedule Lines and relevance for delivery

Select the Item relev.for.dlv indicator for the main item category if you are using outcome A. Although the main item may not actually be delivered, this is necessary so that product selection can be re-determined in the delivery.

If you are using outcome B, select this indicator for the sub-item category only.

Configuring Delivery Item Categories SD Product Selection

Prerequisite

Review the standard delivery item categories for product selection. If you decide that these do not meet your business requirements, for example if you want to remove quantity lines with zero quantity (i.e. substitutes that were not selected), or check for minimum quantities differently than in the standard system, create new delivery item categories for the main and sub-items.

Procedures

We recommend that you copy, then change the standard item categories instead of creating them from scratch. To copy categories, perform the Customizing activity Logistics Execution ® Shipping ® Deliveries ® Define item categories for deliveries (transaction OVLP).

To copy the main item category:

1. Select the entry TAX and choose Copy. Overwrite the key and description with your sales document item category.
2. Be sure to maintain the AvailCkOff (availability check off) field blank so that the main item is not checked when items are copied to the delivery.
3. If you are using batch-managed materials, select the No batch check indicator so that the main item is not processed in the delivery for batch assignment.
4. Make any additional changes and save.

To copy the sub-item category:

1. Select the entry TAPS and choose Copy. Overwrite the key and description with your delivery item category.
2. Be sure to leave the AvailCkOff (availability check off) field blank so that the sub-item is checked.
3. Make any additional changes and save.

If product selection is performed again in the delivery, the system may copy zero quantity line items into the delivery (due to the rejection of a substitute). In order to prevent these zero line items from being copied, enter B in the Check quantity 0 field.

Determining Sales Document Item Categories SD Product Selection

Prerequisite

When you create a sales document, the system determines the item category for the line according to settings in the item category determination table for the sales document type, item category group, item usage, and higher level item.

In product selection, you choose the item category usage based on the outcome that you specify in the reason for substitution, either A or B. The following usages are available for sales document main and sub-items:

Item Category Usage

	Outcome
Usages	Order & Delivery	Order Only
	A	B
Main item	PSHP	PSA1
Sub-item	PSEL	PSA2

Procedures

Make new entries for the appropriate document type and usage indicator for the outcome that you have specified. To assign categories, perform the Customizing activity Sales ® Sales Document ® Sales Document Item ® Assign item categories (transaction VOV4).

To assign the main item category:

1. Choose New entries to enter the order type, item category group, and usage codes.
2. Leave the higher level item blank.
3. Enter the new sales document main item category in the default Item category field.
4. Save and choose Back to exit.

To assign the sub-item category:

1. Choose New entries to enter the order type, item category group, usage codes, and higher level (main) item category.
2. Enter the new sales document sub-item category in the default Item category field.
3. Save and choose Back to exit.

Determining Delivery Item Categories SD Product Selection

Prerequisites

When you create a delivery, the system determines the item category for the line according to settings in the item category determination table for the delivery type, item category group, item usage, and higher level item.

In product selection, you choose the item category usage based on the outcome that you specify in the reason for substitution, either A or B. Two of the following usages are available for delivery document main and sub-items:

Item Category Usage

	Outcome
Usages	Order & Delivery	Order Only
	A	B
Main item	PSHP	PSA1
Sub-item	PSEL	PSA2

Prerequisites

Make new entries for the appropriate document type and usage indicator for the outcome that you have specified. To assign categories, perform the Customizing activity Logistics Execution ® Shipping ® Deliveries ® Define item category determination in deliveries (transaction 0184).

To assign the main item category:

1. Choose New entries to enter the delivery type, item category group, and usage codes.
2. Leave the higher level item blank.
3. Enter the new delivery main item category in the default Item category field.
4. Save and choose Back to exit.

To assign the sub-item category:

1. Choose New entries to enter the delivery type, item category group, usage codes, and higher level (main) item category.
2. Enter the new delivery sub-item category in the default Item category field.
3. Save and choose Back to exit.

Determining Delivery Item Categories SD Product Selection

Prerequisites

When you create a delivery, the system determines the item category for the line according to settings in the item category determination table for the delivery type, item category group, item usage, and higher level item.

In product selection, you choose the item category usage based on the outcome that you specify in the reason for substitution, either A or B. Two of the following usages are available for delivery document main and sub-items:

Item Category Usage

	Outcome
Usages	Order & Delivery	Order Only
	A	B
Main item	PSHP	PSA1
Sub-item	PSEL	PSA2

Prerequisites

Make new entries for the appropriate document type and usage indicator for the outcome that you have specified. To assign categories, perform the Customizing activity Logistics Execution ® Shipping ® Deliveries ® Define item category determination in deliveries (transaction 0184).

To assign the main item category:

1. Choose New entries to enter the delivery type, item category group, and usage codes.
2. Leave the higher level item blank.
3. Enter the new delivery main item category in the default Item category field.
4. Save and choose Back to exit.

To assign the sub-item category:

1. Choose New entries to enter the delivery type, item category group, usage codes, and higher level (main) item category.
2. Enter the new delivery sub-item category in the default Item category field.
3. Save and choose Back to exit.

Setting Schedule Line Categories SD Product Selection

Prerequisite

Schedule line categories contain specific instructions for the sales document line, dictating how the system passes requirements, and checks ATP and other data. In product selection, the schedule line is important because the system uses it to determine whether to process for the main item or the sub-item.

Review the schedule line category configurations in the standard system. If these do not meet your requirements, perform the following activities to modify the schedule line category configuration, or create your own categories.

For your reference, here are the SAP standard settings for schedule lines:

Procedure

To configure schedule line categories, perform the Customizing activity Sales ® Sales Documents ® Schedule lines ® Define schedule line categories (transaction VOV6).

To configure the main item schedule line:

1. Select the entry CX and choose Copy.
2. Overwrite the key and description with your schedule line category.
3. Make any additional changes and save.

To configure the sub-item schedule line:

1. Select the entry PP and choose Copy.
2. Overwrite the key and description with your schedule line category.
3. Make any additional changes and save.

Entering Materials for Substitution SD Product Selection

1. Choose Logistics ® Sales and distribution ® Master data ® Products ® Material determination ® Create.
2. Enter a material determination type and choose Enter.

The standard system includes only material determination type A001. Depending on your business requirements, you may create additional types.

3. Enter a
substitution reason

You can enter a reason manually in each substitute, or enter a default value which the system proposes automatically in the individual substitutes that you create for the main material. This reason is also used in messages in sales order processing.

The system cannot determine the outcome without the substitution reason. You must specify a reason in order to carry out product selection.

4. Enter a validity period for the substitution

The system checks the validity date in the condition records against the requested delivery date in the order header. For example:

Material:	Product 01
Conditions: 02/01 - 02/28	Product 01 is substituted as follows: Product A Product B Product C
Conditions: 03/01 - 03/31	Product 01 is substituted as follows: Product D Product E Product F
Material entered in order:	Product 01
Header date: 02/01 Line date: 03/01	The system proposes: Product A Product B Product C

5. Enter the product that you want the system to substitute with another

Product selection is triggered automatically when you enter this product in an order.

6. Enter alternative products

To enter more than one alternative, select the main material, choose Alternative materials and list the alternatives in order of priority.

Set the material requirements planning (MRP) indicator for one of the alternatives if you want the system to confirm a partial quantity and pass information about the material shortage on to planning. The system creates a special sub-item in the order for partial confirmations.

Enter the original product as the first alternative if you want the system to check this material for availability first, before checking for other alternatives.

Original Material:

• Product A

Alternatives:

• Product A ® Substitute 1
• Product B ® Substitute 2
• Product C ® Substitute 3

When you enter product A in an order, the system checks whether the item is on substitution before checking ATP. Once it determines that the material is to be substituted, the system attempts to find an alternative from the list of possibilities. Beginning with product A, the system checks ATP for each potential substitute to determine if there is sufficient inventory.

7. Enter a unit of measure for the substitute material if you use international article numbers (EAN)

If you do not enter a substitue unit of measure (UOM), the system determines it using the sales UOM, or if you have not entered one, the base UOM.

8. Save and exit.

Product Attributes SD Product Selection

Use

By defining product attributes, you can take into account customer preferences for product substitution. You can store information for up to ten product attributes in both the material master record and the customer master record of the ship-to party:

• In the material master, you can assign product attributes to the material, to indicate whether a product is available with different kinds of packaging, for example.

• In the customer master of the ship-to party, you can indicate whether a customer rejects materials with certain product attributes.

In product selection, the system ignores any material with a product attribute that the customer has explicitly rejected.

Activities

Evaluate your business to determine if there are situations where certain customers refuse products with special attributes. For example, some customers do not accept products produced abroad, while other customers do not want any product that contains a coupon.

If special circumstances exist where certain customers do not accept products with specific attributes, you can define up to 10 product attributes that the system checks during the product selection process.

Define product attributes in the material master

To assign product attributes to a material, choose Materials management ® Material master. Enter a material, choose Org. levels and select the Sales: Sales org. data 2 view. Mark the attributes that apply.

For example, attribute 1 could be defined as a material that is packaged with a visual coupon reference, while attribute 2 could indicate that the coupon is worth less than $0.50. If this material contains a coupon for $1.00, select attribute 1 only.

Define product attributes in the customer master

Select Sales and distribution ® Master data ® Business partners ® Ship-to party (if different from the sold-to party). Enter a customer and choose the Sales view in the sales area data. Choose Environment ® Product attributes. Mark the product attributes that the customer is not willing to accept.

For example, mark attribute 1 if the customer is not willing to accept any product with a visual coupon reference. Mark only attribute 2 if the customer is willing to accept a product with a visual reference to a coupon, but only if the value is greater than $0.50.

If you change the ship-to partner during order entry, the system redetermines product selection to ensure that the attributes of the product and the customer are compatible.

In Customizing for Sales (Sales Document ® Sales Document Header ® Sales document types in the ProdAttr.messages field), you determine how the system reacts when it checks the preferences of the customer against the product attributes assigned to the material. For example, the system may issue a warning, or an error that prevents further processing.

This function is for manual product selection only. It is not used for automatic product selection. In the case of automatic selection, if the attributes of the customer and material are not compatible, the system simply does not propose the product as a possible substitute. It does not issue error or warning messages.

Product Selection in Sales Orders SD Product Selection

Purpose

Product selection is triggered in the sales order when you enter a material that is activated in Customizing for this function.

Process Flow

1. You enter an item and choose Enter.
2. Before performing the standard available-to-promise (ATP) check, the system checks to determine if the product is currently on substitution.

If so, the system uses the requested delivery date from the header to retrieve the list of possible alternatives. It runs several checks on these products, for example, to determine if the customer would accept the product based on the product attributes and current stock availability.

The system repeats these checks on each possible substitute until the order quantity is satisfied, or until there are no more possible substitutes.

3. When a valid alternative is found, the system creates a sub-item for it, using the item category that you have defined for the main material in Customizing.

If there is not enough inventory for the alternatives to cover a required quantity, the system confirms only the available amount and cancels the rest. Because the main item, which contains information on the confirmed quantity of the sub-item, is not relevant for planning, the material shortage is not passed on to planning.

If you set the material requirements planning (MRP) indicator for one of the alternatives, however, the system creates an additional sub-item for this material, assigning it a confirmed quantity equal to zero, and a required quantity equal to the open quantity. Since this material is placed as the final alternative in the substitution, it captures any remaining quantities. The system takes this item into account, passing the material shortage on to planning.

4. Based on your settings for the main and sub-item categories, the system performs pricing at the appropriate level.

If you make any changes to the main item, the system automatically rechecks ATP and recalculates prices for all items in the substitution.

Product Selection in Deliveries SD Product Selection

Purpose

Depending on your settings in Customizing for substitution reasons (outcomes A and B), the system redetermines product selection in the delivery.

This procedure gives you the opportunity to recheck the available quantity of the substitutes in order to increase the potential of shipping the greatest quantity of materials preferred by the customer.

Process Flow

When you create a delivery for an order containing a product that is currently on substitution, the system performs several checks:

• It reads the schedule lines relevant for delivery as well as the substitution reason assigned to the alternative products. If you have specified outcome A, the system repeats product selection in the delivery. If you have specified outcome B, the product selection sub-items are copied directly into the delivery from the order.
• If product selection is repeated in the delivery and there are sub-items that contain zero quantities (for example, if the customer has rejected product attributes, or there is no available inventory), the system reviews your settings for the delivery item category. From these, it determines whether these zero quantity items should be included in the delivery.
• Based on your settings for the main and sub-item categories, the system calculates weight at the appropriate level.

Note that if the main item is weight/volume relevant, you must create a new VOFM copy routine to copy this value from the order.

Product Selection in Billing Documents SD Product Selection

Purpose

The system prices materials according to your settings for main and sub-item categories.

Process Flow

The system copies schedule lines relevant for billing into the billing document. Product selection items are copied directly from the corresponding delivery document with no option for redetermination.

Product Selection in Returns SD Product Selection

Purpose

You must take into account copy rules for product selection items when you create a return with reference to a previous document.

Process Flow

1. When you create a return with reference to a previous document, the system reads the product selection lines and evaluates them based on the
copy rules for the item category.

For returns, you normally set the system to copy product selection items directly as they are in the underlying order.

2. After products are copied to the return order, you can manually change the quantity of the sub-items to reflect the actual amount being returned. The system automatically adjusts main item calculations to reflect theses changed quantities.
3. You continue with your standard delivery and billing processes.

Note that the system does not redetermine product selection in a return delivery regardless of your settings. All entries are copied directly from the return order.

This function is only for returns created with reference to an order. If the return document is created with reference to the billing document, the quantities are not proposed from the billing document, rather you have to enter them manually in the return. In addition, you cannot redetermine product selection here. All of the product selection schedule lines are automatically copied from the billing document. You must then manually delete any irrelevant items from the return.

There is no quantity correlation between the main and sub-items.