What is preference rule in SAP SD - Sales and Distribution?

SAP Term: preference rule

• Component: SD

• Component Name: Sales and Distribution

• Description: A component of a preference agreement that provides details on how the preferential originating status of a product is calculated. Preference rules form the basis for preference determination. The preference rules are divided into general rules and chapter/item- specific rules. Regarding general rules, one basic rule exists for each of the following areas: preferential originating status, minimal operation, set of goods, and general tolerance rules. The chapter/item-related rules are collected in lists and contain special rules for specific products and groups of products.

Smart SAP Assistant

• Key Concepts: 
  Preference rule in SAP Sales and Distribution (SD) is a feature that allows users to define the order of preference for certain criteria when selecting a partner or material. This helps to ensure that the most suitable partner or material is chosen for a particular transaction. Preference rules can be based on factors such as price, delivery time, and quality. 
  
  How to use it: 
  To use preference rules in SAP SD, users must first define the criteria that will be used to determine the order of preference. This can be done by creating a preference rule in the system. Once the criteria have been defined, users can then assign the preference rule to a partner or material. This will ensure that the partner or material with the highest priority is chosen for the transaction. 
  
  Tips & Tricks: 
  When creating preference rules, it is important to consider all possible criteria that could affect the selection of a partner or material. This will help to ensure that the most suitable option is chosen for each transaction. Additionally, it is important to regularly review and update preference rules as needed to ensure they remain relevant and up-to-date. 
  
  Related Information: 
  For more information on preference rules in SAP SD, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_ERP_SD/6.0/en-US/f3d8f9a7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b1/.