Item Proposal VS Material Determination

What is the differences between item proposal and material determination?

Difference between item proposal and material determination: 

Item proposal -- It is a tool to create a sales order for a particular customer in a short span of time or in other words item proposal is a fast entry tool to create a sales order for that customer. 

For example to enter a 5 line items for a particular customer is time consuming but , if we assign item proposal to that customer once we create sales order for that customer automatically, all the 5 line items will trigger in the sales order, which will save time.

Material determination -- It is a condition technique used to swap one material to another material. 

This is used mostly at the time of product promotions, or if any material is getting expired then material determination takes place.
 

Item proposal and product proposal are the same:

Item proposal is the list of materials and order quantities that can be copied into the sales order from the customer master data. 

We use VA51 to create the item proposal. Here we get a number.  This number is then linked to the customer master data in the sales view. Using item proposal based on the we can track the customer previous purchase behavior and retain the business. that is one of the advantages.

Material determination is very closely related to item proposal /product proposal and is used to swap one material for another in the sales order using the condition technique. Material determination is material specific unlike item proposal which is specific to a customer. In the sense any customer who orders a material A would receive B either for promotion / non availability / or old material is obsolete.
 

Item Proposal is a TOOL for fast entry/creation of the sales order:

Material determination is a SAP Functionality.

The Item proposals are prepared for sales areas, where in the frequently ordered materials and quantities are recorded. While creating sales order if you select the item proposal, it list the materials and quantities and we can copy either both or only materials and later you can make changes in the order adding or deleting items and changing quantities.

Material Determination helps in swapping one material with another in the sales order under different circumstances, which is specified in Substitution Reasons. The substitution of material in the sales order can be con figured as manual or automatic. 
The substitution could be because of availability of material, obsolete material replaced by a new improved material, special offers on occasions like Christmas, Diwali etc.,
 

Configuration:

Item Proposal

Item proposal is same as product proposal & SAP uses the two terms interchangeably. 

"An item proposal is a list of materials and order quantities that can be copied into the sales order. Items can also be selected from a list and copied into a sales order." 

1) Use transaction VOV8 to configure the document type ("MS" for product proposal). 
2) Use transaction VA51 to create a proposal. 
3) Enter the item proposal on the sales area data (sales tab) of the customer master record. 
4) In VA01 to create a sales order, Select Edit & propose items." 

Material determination

"Material determination uses the condition technique to swap one material for another when certain conditions apply. Material determination is triggered by the material entered in the line item of the sales order. 

Use transaction VB11 to create a material determination condition record. And OV12 for configuration of material determination. 

Material determination is useful when old product is becoming obsolete or a new product is released by the company at specific date."

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