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 send a tax calculation to FICO.

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 a 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.


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