Summary -

SAP SD stands for Sales and Distribution is one of the crucial module of SAP ERP. SAP SD provides a complete sales management solution for broad range of industries.

SAP SD contains the business processes which are required in selling, shipping, billing of a product. It supports the customers starting from quotations, sales order and until the billing.

Sales and Distribution covers the entire order-to-cash process chain from customer inquiry, sales order and delivery through the billing and payment collection.

The components of logistics execution are integrated and include picking, packaging and shipping. SAP SD module closely integrated with SAP MM and PP modules to process various requests.

The list of SAP SD sub-modules are -

  • Customer and Vendor Master Data
  • Sales
  • Delivery
  • Billing
  • Pricing
  • Credit Management

SAP SD Module Components:-

SAP SD module has multiple components that are integrated with different processes within the processing area. Those are –

  • Master Data
  • Basic Functions
  • Sales
  • Shipping
  • Transportation
  • Foreign Trade
  • Billing
  • Sales Support

Master Data: -

Master Data plays an important role in SAP. The Master Data remains in the database and used for processing of every business transaction in sales and distribution. SAP SD master data consists of material master data, customer master data, pricing condition record, credit management and output records.

Basic Functions: -

SAP SD configuration results an effective process across all the basic functions in sales and distribution area. Some SAP SD basic functions are: -

  • Account Determination
  • Availability check
  • Credit Management
  • Material Determination
  • Output Determination
  • Pricing
  • Text Processing
  • Text Determination

Sales: -

Sales component allows user to execute different business transaction based on the defined sales documents. Sales component takes care of every detail of the sale.

Deliveries and billing can be created and processed from the sales document. Below are the different Sales Documents -

  • Customer quotes and inquiries
  • Complaints
  • Outline Agreements
  • Sales orders

Shipping: -

Shipping is directly linked to the sales and guarantees customer service and distribution of goods. Different shipping methods exist, and this component performs shipping activities of the goods. This component records every process from being shipped to delivered or return back.

Transportation: -

Transportation component works closely with the shipping component to deliver the goods. The goods can be either delivered manually or couriered through third party courier service. Transportation module used to record and track the mode of the transportation for each delivery.

Foreign Trade: -

Foreign trade component used to handle the data that describes the export or dispatch characteristics of a transaction. This module helps the department to handle the data related to foreign trade that include both products that are exported or imported. This module works with the enterprises involved with trade across nations.

Billing: -

Billing component responsible for processing billing related documents such as invoices, credit memos, debit memos and cancellation documents. Customer can pay using different payment methods like online, by cash on delivery or by cash. Billing component can be used to record and track of the billing methods for each payment transaction and save it for future reference.

Sales Support: -

Customer contact sales support team in case any queries about the goods before purchasing it. Sales support module is responsible for recording the data exchanged between the sales support team and customer.

SAP SD Features: -

  • The organizations and enterprise structure designed through SD module which includes the content creation and job assigning.
  • The module keeps the records starting from the sales order quotation to billing and delivery to the customer.
  • The module is integrated to the PP and MM modules which allows the companies to make entries for the customer sales price, enquire about an open order and make a sales forecast.
  • The module modifies the sales documents as per the item category and needs of the company and some of the process includes defining item category, variations and overviews.
  • The module designs the sales documents that includes defining the objectives, functions, processes to control the documents in the phases of sales and controlling.
  • The nature of sales documents, categories of sales document, the schedule line and functionalities can be created.
  • Record the transactions and the sales document structures and keep the records of the presales process.