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SAP Sales and Distribution Module
April 10 2024

 SAP develops enterprise software for large and small businesses.

 There are 3 components to the SAP strategy.

  1. Applications
  2. Platforms
  3. Corporate Network

Applications are the commonly known ERP for which SAP is known, but it also refers to analysis, crm, hr, etc. Platform refers to the database in memory called HANA. People can create applications on top of the HANA on-site and on the cloud. In hybrid scenarios, the HANA platform is also used to connect on pre-deployments with cloud applications. Business networks are the future of enterprise computing where buyers, suppliers, workers, large data and assets will be connected in real time. All it will take is a click of a button.

Sales and Distribution in SAP

SAP's sales and distribution function is part of the logistics area. The module contains processes that help a company integrate with its customers.Sales & Distribution (SD) is one of the main and most used modules of SAP R / 3 products alongside the Financial (FI), Controlling (CO), Material Management (MM) and Production Planning (PP) modules.The Sales and Distribution module (SD) consists of different components, also called sub-modules. 

The main areas covered by this module and the sub modules are:

  • Pre-sales activities, including Inquiry and Quotation creation.
  • Sales Order processing, including Sales Order (SO) creation.
  • Shipping, including Outbound Delivery document creation.
  • Billing, including Billing document and invoice creation.

Sales & Distribution (SD) is a highly integrated module with other SAP modules like FI, CO, MM, PP and more. This can make SD a complex module, so as part of this introduction we will also attempt to detail a normal sales process and how the activities fit and are covered by this module.These processes include:

  1. Providing quotations to customers:

The cost and the product details are provided through the quotations.

  1. Receiving sales order via phone, internet or EDI:

Ones the quotation is approved, sales order is received through phone, internet or through other network.

  1. Shipping the finished goods:

After getting the order, the finished goods are being transported at the final destination.

  1. Billing the customer for the goods received:

As soon as the good are received, billing process takes place and money is transferred.

Organizational structure

 The organizational structure forms a business framework, in which companies are connected.Each company is structured in a certain way, and this structure must be represented in SAP, it is done with the help of the organizational structure.In sales and distribution, organizational structures are closely integrated with those of financial accounting and material management. The creation and assignment of organizational units takes place in the corporate customization structure.

 Conclusion As you can see the integration is one of the fundamental aspects of this module, so all SD Consultants need a very good understanding of the process.

Anisha Mukhija

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