Phase 07: Jargon Busting

This page explains Phase 7 jargon for SAP learners building their first S4HANA Sales structure. In short: it turns scary configuration terms into plain English you can actually use. It matters because jargon slows everyone down, hides simple truths, and blocks clean-core decision making. Use it when learning organisational structure in Sales. Avoid it when you need deep technical documentation or IMG detail.

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Term	Plain English Explanation
Account Assignment Group (Customer)	A label that tells SAP what type of customer is buying something so it knows which money bucket to use.
Account Assignment Group (Material)	A label that tells SAP what type of product is being sold so revenue goes to the right financial bucket.
Account Determination	The rules SAP uses to decide which financial account gets the money when something is sold.
Account Key	A small code SAP uses to link a price or tax to the correct financial account.
Company Code	A digital version of a real business inside SAP. Each one has its own books and financial records.
Customer Pricing Procedure	A setting that tells SAP how simple or fancy a customer’s pricing should be.
Distribution Chain	A combination of how you sell something and which warehouse sends it. Like pairing a sales route with a specific storage site.
Distribution Channel	The route a product uses to reach a customer. Online, retail, wholesale. It is the path, not the product.
Document Pricing Procedure	A code that tells SAP what type of transaction this is so SAP knows which pricing logic to use.
G/L Account (General Ledger Account)	A financial bucket used to record money coming in or going out.
Material	A product you sell, buy, store or make. From sensors to cameras to fire alarms.
Moral (SAP Context)	A small lesson SAP teaches you after you break something. Usually the hard way.
Plant	A warehouse or factory. Anywhere products are kept or produced.
Pricing Procedure	The recipe SAP follows to calculate a price. Base price, discounts, taxes, shipping. All in sequence.
Pricing Procedure Determination	The mechanism SAP uses to pick the right pricing recipe for each order.
Product Hierarchy	A tree that groups similar products together so reporting makes sense.
Sales Area	Three pieces combined: Sales Organisation + Distribution Channel + Division. It tells SAP who sells, how they sell, and what type of product they sell.
Sales Organisation	The part of the business responsible for selling products. The official “who sells” in SAP.
Tax Code	A shortcut that tells SAP what tax rate to apply.
Valuation Class	A setting that tells SAP which financial accounts should be used when stock moves.
Valuation Control	A switch that decides if multiple warehouses share the same valuation rules or each uses its own.
Valuation Level	Where SAP tracks stock value. Either per company or per warehouse. Most pick warehouse.
Zero-Balance Clearing Account	A special account SAP uses to split costs or revenue between departments so everything balances perfectly.

Author: Isard Haasakker

Organisation: No Tie Generation Limited

Framework: Fast Implementation Track

Canonical Link: https://fit4sap.notion.site/phase-07-jargon

Updated: 04-Dec-2025

License: CC BY-NC-SA 4.0

Tags: #Jargon #Sales #S4HANA #FIT #Learning