Fundamentals Of SAP SD (Sales and Distribution)

What is SAP SD?

SAP Sales and Distribution is a crucial module of SAP consisting of business processes needed in selling, transportation, billing of goods. The module is highly consolidated with SAP MM & SAP PP.

SAP Sales and Distribution module is one of the most commonly used modules that is granted in the SAP SD Certification program towards more secure data and work administration in corporations. The SAP was inaugurated by SAP AG introduced in Germany.

It is an enterprise resource planning (ERP) software product that facilitates organizations in blending various business processes through a single unified system. Since SAP commenced its campaign focusing on inventory management, it has come a long way in embracing several modules for different processes in an organization. Today, SAP has been acquired by most of the companies from across the world to improve the process works in various departments. From human resource management to sales and distribution and from financial accounting to controlling, SAP has a broad range of modules for various job fields.

 

SAP Sales and Distribution

Key Elements in SAP SD:

The key elements in the SAP Sales and Distribution module are −

·       Consumer and Vendor Master Data

·       Sales Support

·       Shipping of Material

·       Sales Activities

·       Contract Handling and Management

·       Billing-related

·       Transportation of products

·       Credit Management

·       Foreign Trade

·       Information System

 

Features of SAP Sales and Distribution (SD):

Here are some essential features of the SAP SD:

·       Price and Taxation: – It assists you to evaluate the price of goods and services under several circumstances like rebate or discount, which is given to a customer.

·       Billing & Invoice: Supports you to create bills or invoices.

·       Availability Check: Check the availability of goods in the warehouse of an organization.

·       Material Determination: Assists you to ascertain the aspects of materials on the basis of a certain condition.

·       Credit Management: It is a way of controlling the credit limits of the consumers. It can be figured in two distinct ways simple credit check and automatic credit check.

·       Account Determination: Encourages you to determine the details of consumers on the basis of a

·      given condition type.

 

Advantages of SAP SD Configuration in Enterprises:

The SAP SD module is the most essential ERP module developed by SAP. It assists in better administration of sales and customer distribution data and processes in organizations. 

·       Track of sales activities

·       Record or pre-sale and post-sale process

·       Tracks sales data with team performance

·       Explained process for sales and distribution

·       Categorization of diverse sales and process

·       Effective management of sales documents in a unified system

Owing to all the above advantages and many more, the SAP SD module is utilized by a huge number of enterprises across the globe and today it is one of the most popular ERP systems globally used. As industries are moving towards SAP implementation, the requirement for SAP training is increasing immensely amongst professionals.

 

Organizational Structure of SAP Sales and Distribution (SD):

SAP delivers many elements to create SAP Sales and Distribution organizational structure like Sales Areas, Distribution Channels, Divisions, etc. The SAP SD organization structure mainly contains two steps −

·       Creation of Organization elements in SAP system, and

·       The second is to link each element as per requirement.

On top of this organizational structure in the SD module, the sales organization is at the most important level and is accountable for the distribution of goods and services. SAP suggests keeping the number of the sales organization in an organizational structure to be smallest. This will help in making the reporting process simple and ideally, it should have a single sales organization.

The next level is the distribution channel, which indicates the medium by which the products and services are distributed by an organization to its end users. Division in an organizational structure, which describes a product or service line in a particular organization.

A sales area is recognized as an entity, which is needed to process an order in a company. It contains the sales organization, distribution channel, and division.

In SAP SD's organizational structure, each sales organization is assigned to a company code. Then the distribution channel and divisions are assigned to the sales organization and all of these include making a sales area.

In the first step of an SD organizational structure, the sales organization is assigned to an organization code and then is defined as a distribution channel and then division to a sales organization.

 

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