What is SAP SD?

SAP SD which is the acronym for SAP Sales and Distribution is a core functional software module in SAP ERP Central Component (ECC) system that allows businesses and organizations to save, store and manage both customer and product-related data. Businesses and organizations make use of this data to manage all of the sales orders, shipping, product billing, and invoicing of their goods and services.

SAP SD is a major part of the SAP ECC's Logistics function and it can be integrated with other modules, including Plant Maintenance (PM), Production Planning (PP), Quality Management (QM), Materials Management (MM), Finance and Controlling (FICO), and Human Resources (HR).

Working hand in hand with the other modules, SAP SD ensures that an order-to-cash cycle business process is being put in place. SAP SD manages all the details in the sales and distribution section of the business cycle, according to the SAP software.

In a real life cycle, SAP SD produces a quote of the sales and the customer then places a sales order, the goods are then selected from a warehouse or from production facility and then shipped to the customer, an invoice is sent with the order together with accounts receivable to settle the payment with the customer. Each step in this process generates a transaction in the SAP SD module, which then produces further transactions in the other ECC modules.

For example, when a customer's sales order is produced in SAP SD, it creates a link for a product availability check to MM, a credit check to FICO, or just sends a tax calculation to FICO.

Components of SAP SD

1. Master Data: The processing of business transactions in sales and distribution is based on the master data. It comprises Organizational Structures, Customers and Business Partners, Customer Hierarchies, Products and Services, Agreements, Customer Material Information, Item Proposal.

2. Basic Functions: These functions include Pricing, Availability Check, Credit Management, Material Determination, Output Determination, Text Processing, Tax Determination, Account Determination

3. Sales: This includes foreign sales and sales support, Sales allows you to execute different business transactions based on sales documents defined in the system. It could be Working With Sales Documents, Customer Inquiry/Quotation, Sales Order, Scheduling Agreements, Customer Contracts, Complaints, Backorder Processing.

4. Shipping: This is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles. It could be Delivery Processing, Picking, Packing, Goods Issue, Printing and Communication in Shipping, Planning, Monitoring and Analysis in Shipping.

5. Transportation: Effective transportation planning and processing ensure that shipments are dispatched without delay and arrive on schedule. It comprises of Transportation Planning, Shipment Execution, Monitoring Shipments, Shipment Cost Processing

6. Billing: This represents the final processing stage for a business transaction in Sales and Distribution. It involves Billing Processing, Invoice List, Rebate Agreements, Integration with Accounting, Resource-Related Billing, Intercompany Business Processing.

7. Sales Support: Within the Sales Support environment, all sales personnel in the field and in the office can share valuable information about customers, sales prospects, competitors and their products, and contact people. It involves Basic Data for Sales Support, Basic Functions in Sales Support, Sales Promotions, Sales Activities, Customer Potential Analysis.

8. Information System: The SAP System offers you a wide range of information and analysis tools for sales and distribution. This includes Reports in SD, List of Sales Documents, Information on Individual Sales Documents, Functional Analyses, Sales Information System.

Features of SAP SD

There are many features of SAP SD, and some of them are:

1. SAP SD joins together the business process that is used in selling, and in billing goods and services.

2. SAP SD integrates data flow to the remaining software modules of SAP.

3. Multilingual/Multicurrency: In SAP SD, several languages can be used. Conversion across different currencies is an automatic process and connecting to SAP’s real-time currency rate database in Germany provides users with operational use.

4. Adaptable functionality: SAP SD personalizes and customizes the product through the IMG function.

5. Pricing Flexibility: In SAP SD, you can create highly complex pricing schemes that are dependent on customers, numbers of goods sold, special promotion offers, etc. Rebate options of processing are also very comprehensive and sophisticated.

6. Simple Order Entry: The user would input all their basic order details on one window. From this window, there is the simple access to all the levels of the customer's order, namely header, item, and scheduled line of information.

7. Comprehensive Reporting: The Sales Information System (SIS) module of SAP SD allows data to be stored, modified, and reported upon by the user in a different format.

8. SAP SD has a very effective Batch Processing of Orders, shipments, and other documents that are related to sales based on order types, specific customers, or material.

9. Price and Taxation: It helps you to compute the price of goods and services that are being rendered based on various conditions like rebate or discount, which is granted to a customer.

Benefits of SAP SD

There are many benefits of SAP SD and some of them are:

1. SAP SD tracks all the sales transactions in an organization.

2. SAP SD tracks sales data together with team performance

3. Record pre-sale and post-sale processes.

4. SAP SD allows you to have a defined process for sales and distribution.

5. SAP SD helps you to structure diverse sales and processes in a business.

Why study SAP SD

1. SAP SD integrates data flow into the other software modules of the SAP business suite.

2. If you own a business, with SAP SD, you can easily keep track of your sales data together with the performance of your workers.

3. Knowledge of SAP SD would help you to ensure that you maintain a set procedure for sales and distribution of goods.

4. Career Opportunities And Advancement

5. Entrepreneurial Opportunities And Consultancy

SAP SD Course Outline

SAP SD - Introduction

SAP SD - Create Partner Function

SAP SD - Create Material Stock

SAP SD - Create MM For Sales View

SAP SD - Customer Account Groups

SAP SD - Pre-Sales Activities

SAP SD - Create Quotations

SAP SD - Sales Support

SAP SD - Sales Order Processing

SAP SD - Creation of Sales Order

SAP SD - Defining a Sales Document

SAP SD - Item Categories

SAP SD - Schedule Lines Categories

SAP SD - Copy Control

SAP SD - Log of INComplete Items

SAP SD - Pricing

SAP SD - Condition Record & Table

SAP SD - Access Sequence

Prices, Surcharges & Discounts

SAP SD - Product Proposals

SAP SD - Sales Order Types

SAP SD - Free of Charge Deliveries

SAP SD - Outline Agreements

SAP SD - Quota Arrangement

SAP SD - Special Business Process

SAP SD - Shipping

SAP SD - Define Routes & Stages

SAP SD - Outbound Delivery

SAP SD - Delivery Processing

SAP SD - Introduction to Billing

SAP SD - Billing Methods

SAP SD - Credit Management

SAP SD - Exams and Certification

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