SAP Sales and Distribution (SD) is an SAP module that manages the complete sales and delivery process, including pricing quoting, billing and credit management processes.

SAP SD comprises multiple subcomponents, such as customer master data, material master data, price condition records and production master data – which all reside and can be managed in centralised tables stored and administered within SAP SD.

Sales Inquiry

SAP SD is an all-in-one sales and distribution module, covering every step of the order-to-cash process from customer data management, transaction monitoring and oversight, to product distribution using integration with other SAP modules such as Material Management (MM) and Production Planning (PP).

At the center of SAP SD flow is recording customer inquiries for products or services, known as inquiries. SAP then generates an internal document known as an inquiry which includes details regarding request, pricing and delivery information as well as contact info of all involved.

Quotation – The next step in SAP SD flow is creating a quotation for any requested products or services. A quote provides documentation of price, terms of sale (such as discounts or rebates), payment terms or shipping details that is part of an official sale contract.

Sales Order – Once the quotation has been accepted by a customer, sales team members enter it in SAP system by creating a sales order document that contains details such as customer contact info and specific product and pricing data – such as purchasing 100 units of product at $10 each unit price.

Once a sales order is created, it activates numerous SAP processes to ensure it reaches its customer on time and undamaged. A requirement transfer occurs in Materials Planning (MM), with options such as Stock Transfer, Make-to-Order Replenishment or Replenishment available to replenish inventory levels as outlined by Financial Accounting (FI). Finally, any inventory movements recorded within SAP hit their respective general ledger accounts via Financial Accounting (FI).

Quotation

SAP SD helps businesses streamline their operations from sales quotations through order processing, product shipping and inventory tracking to invoicing and credit management. It is an integral component of SAP ERP systems used by companies across numerous industry sectors globally.

Sales quote processes involve sales professionals presenting potential customers or business partners with formal offers of products or services at specific terms and fixed conditions, which include price quotes as well as delivery schedules. A SAP SD sales quotation can also be linked directly to customer opportunities or existing orders for additional tracking purposes.

The SAP SD module’s master data compiles essential client and supplier information in one central place. It includes client records, price tags, orders, deliveries and invoices as well as credit management functions like keeping tabs on customer credit limits and extending them when appropriate.

For optimal use of SAP SD software, it is vital to comprehend its basic functions and terminology. This is particularly relevant if you work in sales departments at companies. The module handles numerous processes essential to its successful functioning such as creating sales inquiries, accurately pricing goods, arranging delivery documents, as well as handling customer support inquiries. Companies looking to boost customer satisfaction while cutting costs, increasing productivity and increasing productivity while simultaneously increasing customer loyalty with SAP SD are using it successfully as well as efficiently analyzing return on investment (ROI). Furthermore, companies with many clients with differing payment terms will especially find SAP SD useful when dealing with large clients with multiple payment terms – especially those companies dealing with many clients who require support services utilizing this software solution!

Sales Order

The Sales Order Process of SAP SD is an essential element, responsible for creating and recording initial customer exchanges within the system, including quotation creation. Additionally, it handles the entire shipping process – from product being sent out until its arrival or return back to vendor – directly related to its Shipping Module – making it suitable for service-oriented companies which utilise courier delivery or manual shipping methods as it tracks every shipment as it passes along its journey and provides tracking information directly back to clients.

Material Management (MM) and Financial Accounting (FI) modules work closely together. When creating a sales order, this establishes links to both of them for product availability checks in MM and credit check in FICO; additionally, each shipment generated through such orders triggers a G/L account in FI.

Once the sale is complete, the Sales Order is converted to an invoice and sent directly to the customer. This invoice includes all items sold as well as their associated costs as well as any applicable taxes or discounts; then payments are made based on agreed payment terms.

SAP SD’s Sales Division feature allows you to organize clients, products, and sales paperwork into distinct groups for easier analysis. This feature can help improve customer service by quickly responding to customer demands with tailored pricing or discount structures; tracking orders efficiently; verifying stock levels accurately and streamlining operations overall – all features which enhance business operations and increase profit potential. In order to create a Sales Division you will require both a company code and two distribution channels as a prerequisite.

Delivery

This module oversees all stages of product shipment to customers, from business warehouse and shipping operations, delivery/receipt processes, as well as verifying if goods have been sent directly to the correct customer and recording a confirmation of delivery (POD) document.

The Sales and Distribution module of SAP tracks and manages every detail of a sale from identification of client needs to sales paperwork management. Furthermore, this component helps improve customer service by quickly locating products or services needed by clients.

The shipping module works closely with this feature to track all methods used for product deliveries – both courier and manual deliveries – enabling companies to analyze and optimize their workflow, as well as to customize it according to different company needs.

SAP SD’s other useful feature is monitoring customer credit limits. This feature makes sure no one surpasses these thresholds and alerts them if this occurs; an invaluable asset for organizations trading across borders with differing tax structures.

As part of your effort to become a SAP expert, it is key that you gain hands-on experience using this software. This can be accomplished through formal education courses, self-study and building professional networks. Furthermore, certification with SAP may validate your skills and expand career opportunities; there are various online tutorials and courses dedicated to teaching this software that may also prove helpful.

Billing

SAP SD can help businesses to streamline their shipping, billing, selling and transportation operations by streamlining operations across shipping, billing, selling, transportation as well as financial input data generation processes. Integration between modules such as MM and PP enables businesses to easily generate sales documents for use as financial input data quickly while providing valuable financial condition insight which is an invaluable asset.

Typically, the system selects billable items based on parameters defined within billing processes. Billing processes may either be milestone- or milestone-based – with milestone-based billing, the total billed amount is divided up among multiple dates that have already been decided on; often used with projects and service contracts.

Referencing sales documents during billing can either be the delivery note or invoice, with either being used as the reference document with its billable item and quantity that correspond to that on the billing document being used as reference. If necessary, another billing document number should be entered.

When creating a billing document, the system automatically copies over pricing elements from previous sales documents or manually trigger them based on pricing rules you establish in Customizing for SD, under Basic Functions Account Assignment/Costing, Reconciliation Account Determination. Alternatively, manual pricing trigger can also be set. In addition, revenue accounts from transaction goods master records will also be utilized. Finally, revenue account determination settings can be found under Basic Functions Account Assignment/Costing Reconciliation Account Determination settings in Customizing for SD.

SAP SD division management allows you to subdivide business documents and records. This enables you to categorize clients, products and sales paperwork for easier analysis and reporting purposes as well as tracking customer demands more effectively and creating tailored pricing structures. To create a division you must first navigate to the master data screen wherein you must navigate between Master Data, Business Partners and Divisions before selecting a Division Type and inputting data for every field in its form field.