SAP SD - Introduction

SAP Sales and Distribution is one of the key components of SAP ERP system and is used to manage shipping, billing, selling and transportation of products and services in an organization.

SAP Sales and Distribution module is a part of SAP Logistics module that manages customer relationship starting from raising a quotation to sales order and billing of the product or service. This module is closely integrated with other modules like SAP Material Management and PP.

Sales and Distribution:

Sales and distribution module is a part of logistics and it handles all the process of order to delivery, it is fully integrated with the other modules of the SAP System such as MM and PP.

SD contains many phases such as Inquiry, Quotation, Sales Order, Sales Returns, Credit Management, pricing, tax determination, and Goods Delivery modules.

                                 

Inquiry: Once we receive the quotation from the customer then as a vendor we need to check whether we can deliver the goods with customer conditions or not.

Quotation: Once we finish the inquiry then as a vendor we need to send quotation to the particular customer.

Sales Order: Once we receive the purchase order from customer then as a vendor we need to raise the sales order, while raising sales order we should know the partner functions.

Sold-To-Party – who as raised the purchase order.

Ship-To-Party – where we need to deliver the goods.

Bill-to-party – to whom we have to give the bill.

Payer – who is going to pay the money?

Goods Delivery: After raising the sales order as a vendor we need to deliver the goods.

Billing: While delivering the goods we need to send the billing document.

Finance: Once we deliver the goods with billing vendor finance guy will interact with the customer finance guy for finance settlements.