Sales Document Types in SAP S/4 HANA

When it comes to managing the Sales and Distribution (SD) process in SAP S/4 HANA, Sales Document Types play a key role. They determine how different kinds of sales transactions are processed from inquiry to order to billing.

What is a Sales Document Type?

A Sales Document Type is a control parameter in SAP that defines the business process for a particular sales transaction.

For example:

• OR - Standard Order

• RE - Returns

• QT - Quotation

• IN - Inquiry

Each document type represents a unique business scenario and determines how the system behaves during the sales order cycle.

Importance of Sales Document Types

Sales Document Types define the processing rules and flow of transactions in the order-to-cash (O2C) cycle. They control:

• How pricing, delivery, and billing are handled

• Whether a credit check is required

• If inventory should be updated

• Whether approval or reference documents are needed

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Configuration Path

To configure Sales Document Types, navigate in SAP as follows or use T code VOV8

Key Controls within Sales Document Types

When defining a Sales Document Type, the following key settings are controlled:

Field	Description
Sales Document Type	Unique key for the document (e.g., OR, RE, QT)
Number Range	Assigns the range for document numbering
Sales Document Category	Determines the category (e.g., Order, Quotation, Return)
Delivery Type & Billing Type	Controls subsequent processes
Reference Mandatory	Specifies if reference documents are required
Item Division Allowed	Determines whether multiple divisions are permitted
Credit Check	Enables credit limit verification
Billing Block	Prevents billing until manually released

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Example

Let’s say your company receives a customer order for 100 units of a product. You create a Standard Order (OR) in SAP S/4 HANA. The system automatically:

• Checks credit limit

• Confirms availability

• Triggers delivery (LF) and billing (F2) documents

If later the customer returns 10 units, you create a Return Order (RE) - linked to the original OR document - which reverses the billing and updates inventory.

Commonly used Sales Document Types in SAP S/4 HANA

Document Type	Description	Usage
OR	Standard Order	Regular sales order for delivery & Billing
RE	Returns	Customer returns goods after sale
RO	Rush Order	Delivery immediately after order creation
CS	Cash Sales	Payment and billing at the time of order
KE	Consignment Fill-Up	Stock sent to customer without billing
KR	Consignment Return	Goods returned from consignment
QT	Quotation	Offer sent to customer
IN	Inquiry	Request for quotation from customer

Thank you for taking the time to read this blog!

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