SAP Sales And Distribution(SD) Fundamentals And Details

Author: Jyoshna Karna

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SAP SD module is a part of the SAP Logistics module that manages customer relationships, beginning from raising a bid for sales orders and billing the service or product. SAP SD module is closely integrated with modules like SAP Material Management, Plant Maintenance, Quality Management, Production Planning, Human Resource, and Finance & Controlling.

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SAP Sales and Distribution handles all the details in the sales and distribution part of the cycle. In a typical process, SD generates a sales quote, after which the customer places a sales order; the goods are later picked from a warehouse and dispatched to the consumer. An invoice is sent to settle the payment with the order and accounts receivable to the customer. Every step generates transactions in the SD module, generating further transactions in the other ECC modules.

SAP SD is explicitly designed to support the following business processes in an organization:

  • Customer Master and Material Master data
  • Sales Orders
  • Deliveries
  • Pricing
  • Billing
  • Credit Management

SAP ERP SD is an element of the logistics module, and it assists the consumers in concerns related to prices, sales orders, and invoices. It is in collaboration with the Material Management and Production Planning modules. It empowers organizations to update their sales price and witness open orders and other forecasts.

Let's take a look at the SAP SD Modules.

Sales & Distribution (SD) is one of the main modules of SAP R/3 services. This module includes several constituents called sub-modules, which are listed below.

SAP-SD-MD (Master Data): SAP SD user has master data that tracks every transaction within the data. The SD master data contains both customer and material data, price conditions record, along credit management. The processes of order and cash are included in this process.

SAP-SD-BF (Basic Functions): The configuration of SAP SD results in an efficient process across all necessary functions in sales and distribution. The examples of the primary functions can be amount, end-result, etc. The listed pricing is used for a distinct sale, and the output result from the same.

SAP-SD-SLS (Sales): SAP SD sales handle the minute details of every sale that takes place. Everything is tracked through this module, from recording the product to customer details, pricing, feedback, and sales.

SAP-SD-SHP (Shipping): Sales are closely associated with shipping and delivery. Any product should be accurately shipped and delivered to the consumer. There are various methods of shipping, and this module tracks every product used during each delivery. The whole process from being shipped to delivered or return is registered with this module.

SAP-SD-TBA (Transportation): This SD-TBA element works hand in hand with the freight. The mode of transportation for each product varies, and this module keeps track of all the shipping data.

SAP-SD-FTT (Foreign Trade): This SD-FTT helps a department manage the data associated with foreign sales, including imported and transported goods. This module is most suitable for enterprises involved with marketing across nations.

SAP-SD-BIL (Billing): Billing is a fundamental part of any purchase. Customers hold the choice of either paying online or through cash on delivery. This specific module maintains track of every billing data appropriately.

SAP-SD-CAS (Sales Support): Customers constantly interact with the sales team, right from selling a product to managing it for a process. Through this module, every bit of data exchanged between the sales team and consumers is recorded and reported while delivering support for a product.

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Implementation of SAP SD has many advantages for the enterprises executing it. The SAP SD modules show accurate and up-to-date sales and distribution data and relevant activities. It offers consumers orders, delivered products, orders pending, creditor status, etc. It is convenient to track companies’ KPI (Key Performance Indicator) to gauge the performance and run according to the scheduled calendar. SAP ERP and its other modules, SAP BI, SAP MM, SAP FI/CO, SAP SCM, etc., provide data comparison facility over multiple years.

The Advantages of SAP SD Software are:

  • Tracking of sales transactions
  • Sales data along with team performance is tracked
  • Recording of pre-sale and post-sale process
  • Established process for sales and delivery
  • It helps companies to classify different sales and process
  • Efficient management of sales documents in a precise system

The characteristics of SAP SD are as follows:

  • It helps in the implementation of business processes used for selling and billing goods and services.
  • SAP SD integrates easy data flow to the remaining modules of SAP.
  • Multilingual for the multicurrency transaction. Conversion between currencies is automatic, and connecting to SAP’s real-time currency rate database in Germany enables operational use.
  • Versatile functionality – R/3 customizes the product through the IMG function.
  • Pricing Flexibility – In SAP SD, companies can create intricate pricing schemes dependent on clients, goods sold, exclusive promotions, etc. Allowance processing options are also very sophisticated and extensive.
  • Simple Order Entry – The user enters the necessary order details everything on one window. There is
    • easy access to all the order levels from this window, namely the header, item, and schedule line data.
    • Comprehensive Reporting – The Sales Information System (SIS) allows data to be stored, consolidated, and reported upon by the user in various formats.
    • SAP SD allows efficient batch processing of orders, consignments, and other sales records based on order types, consumer, or material.

    SAP SD is an outstanding software program for every company that aids in supervising master data, system configuration orders, cash-process-related transactions, and more. With the help of this module, organizations can entirely manage their Customer Master and Material Master Information, Sales Orders, Deliveries, Prices, Invoicing, and Credit processes. There are different sub-modules of SAP SD for various methods such as Master Data, Sales Support, Pendulum Listing Indirect Sales, Sales, Shipping and Transport, Billing, Empties Management, Credit Management, Foreign Trade, and Sales Information System. Each SAP SD module gives quick and straightforward task lists within the more extensive sales and distribution approach.

    The demand for SAP ERP software is rising, and with this quest for SAP, experienced candidates are also thriving.

    SAP-SD Career: Candidates planning to make a career in SAP can take up the certification course from any renowned institute located in metropolitan cities like Hyderabad, Bangalore, and Chennai for reasonable fees. SAP-trained candidates are in high demand by companies opting for SAP. Post to the training, candidates can choose between technical or functional job roles.

    An SAP SD Consultant is accountable for analyzing detailed business process requirements and implementing corresponding system solutions. They are also in charge of classifying and evaluating client specifications.

    The SAP SD Consultant is also responsible for liaising between the company, subject matter experts (SMEs), and other associated teams to accomplish requirements, identify issues in the system, develop suitable solutions, and prepare functional specification improvements.

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