Rejection Reason, Billing Block, and Delivery Block Customizations

These settings refer to the customization of rejection reasons, billing blocks, and delivery blocks within the SAP SD module. Rejection reasons are used to indicate why a sales document (such as a sales order or quotation) is being rejected. Billing blocks prevent a document from progressing to the invoicing stage, while delivery blocks are used to control whether delivery can be created. These configurations are often tailored based on the company's business processes.

1.Rejection Reason

A rejection reason is used to indicate why specific items in a sales order are being cancelled. These reasons are important for analyzing and reporting on sales decisions.

Example rejection reasons include:

•Customer cancelled the order

• Out of stock

• Price not accepted

Customization steps:

SPRO → IMG → Sales and Distribution → Sales → Sales Documents → Sales Document Item → Define Reasons for Rejection

T-Code: OVAG

Output, If this box is checked, the system generates output (e.g., print, email) for this rejection reason. It is generally left unchecked.

Open Resource Item, Indicates whether the item affects resource planning (such as MRP or capacity). This is typically not selected.

No Billing, If a sales order item is cancelled using a rejection reason marked as "No Billing", no invoice is generated for that item, and it is excluded from the billing process.

Statistics, Determines whether the rejection reason should appear in statistics. If checked (X), it will be included in sales reports.

After defining the rejection reason, it must be assigned to the relevant sales document type and sales organization.

We make the assignment by selecting "New Entries."

While creating an order in VA01, you can go to the Sales A tab under the item data and select the rejection reason you previously created.

We can also do it from here.

The delivery could not be executed due to the rejection reason.

2. Delivery Block

In SAP, you can create delivery blocks based on your specific conditions. A delivery block can be applied to a particular sales order to prevent delivery from being processed. Additionally, it can be defined at the customer account level to block all deliveries related to that customer.

If an employee tries to process this order in SAP, a delivery document cannot be created due to the delivery block. Once the block is applied, the shipment of the order cannot proceed until it is removed by an authorized person.

The following steps are used to define the reason for blocking a sales order.

On this screen, we define the delivery block reason and its criteria by selecting "New Entries."

Order, Prevents order creation. If this box is checked, the system will not allow order entry.

Confirmation Block, Places a confirmation block. It may affect processes such as ATP (Available-to-Promise) during stock checking.

Print, Prevents document printing (e.g., delivery note, label, etc.).

DlvDueListBlock, Prevents the order from appearing in the delivery due list. It will not be considered in delivery scheduling.

Pick.Block, Blocks picking operations. The warehouse staff will not be able to pick the product.

GI Block, Prevents goods issue. Shipment of goods cannot be processed.

• In a case where the customer has exceeded their credit limit and I want to stop the delivery, I want the order to be excluded from the delivery lists in the system, prevent the warehouse from performing picking operations, and block the goods issue (shipment).

Now let’s assign our delivery block reason to the relevant delivery type.

We assigned the block reason to the Delivery Type by selecting New Entries.

While creating an order in VA01, we select our delivery block. Then, we save the order and try to process the delivery.

As we can see, when we tried to process the delivery, it couldn't be done due to the block.

3. Billing Block

Billing Block Reasons:

• Price ControlThe price in the order might be missing, incorrect, or not approved. Price control may be required before billing.

• Returns or Rejection OrdersThe customer has returned the product or rejected the order. In such cases, the system automatically applies a billing block.

• Manager Approval RequirementBefore the invoice is issued, approval from authorized personnel is required.Generally, the block is removed through manual intervention.

• Delivery Issues or Customer DisputeThere may be issues with delivery such as shortages, damage, or late delivery.Billing is blocked until the reconciliation with the customer is completed.

• Credit Limit ExceededThe customer has exceeded their credit limit.Billing is not performed without payment or limit approval.

• Special Cases / CampaignsSpecial pricing, campaigns, or projects may require different processes.A block is applied for control purposes before billing.

How is it done?

The billing block reason is first defined by following the steps below.

We define the block reason by selecting New Entries.

 We go back and assign this block reason to our billing type.

We make the assignment by selecting New Entries.

If we want it to be applied automatically to the order, we can link the billing block we created to our sales order type.

For this, we go to T-Code: VOV8.

When creating an order in VA01, the billing block will be applied automatically due to the assignment we made in VOV8. If we want to block it manually, we can select it in the order without making the assignment in VOV8.

 When trying to deliver and invoice, as seen below, the invoice could not be generated because it was blocked due to stock.

CONCLUSION

This document provides explanations about the different types of blocks encountered in sales processes: Rejection Reason, Billing Block, and Delivery Block. Each type of block is applied under specific conditions to prevent actions like sales orders, deliveries, and invoices in the system. The Rejection Reason specifies various causes for the cancellation of order items, the Delivery Block prevents the shipment of certain orders, and the Billing Block restricts the issuance of invoices. These blocks are used to manage situations such as customer payments, delivery issues, price control, and exceeding credit limits. For smooth operations, it is crucial that each block is properly defined and resolved through manual intervention when necessary.