SAP Sales and Distribution (SD) Concepts & Integrations with Other Modules

What is SAP Sales and Distribution (SD)

 

SAP Sales and Distribution (SD) is a core module under SAP ERP software. SAP ERP is a combination of different modules FI/CO, MM, ABAP, SCM, BASIS, HCM, HANA and is provided by Germany-based software manufacturer, SAP AG. SAP SD is commonly integrated with FI and MM component.

SAP SD is a module for sale management. Standard support of sales support, ordering activity, shipping order to warehouse, billing processing to customer can be done in one operation. It also includes document creation and printing functions for these instructions.

 

Integrations with different modules

Sales Order

Credit Check – FI, Availability Check – MM, Tax Determination – FI, Costing – CO/ MM and Transfer of Requirements – PP/ MM

Delivery & Goods Issue

Availability Check – MM, Credit Check – FI, Reduces Inventory – FI/ CO, Requirement Eliminated – PP/ MM and Reduces stock – MM

Billing

Debit A/R – FI/ CO, Updates G/ L – FI/ CO, Milestone Billing – PS and Credit Revenue – FI/ CO

Return Delivery & Credit Memo

Increases Inventory – MM, Updates G/ L – FI, Adjustment to A/R – FI, Credit Memo – FI and Reduces Revenue – FI

 

1. Sales Organization

Sales Organization is a top level unit in company which is responsible for selling products and services.

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> Enterprise Structure (ES) ->->Definition ->-> SAP Sales and Distribution (SD) ->-> Define, copy, delete, and check Sales organization

     Assigning Sales Organization to Company Code

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> ES->-> Assignment ->-> SD->-> Assign Sales Organization to Company Code

 

2. Distribution Channel

Distribution channel is a way through which an organization will deliver goods and services to customers’.

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> ES->-> Definition ->-> SD->-> Define, copy, delete, check distribution channel

Assigning Distribution Channel to Sales Organization

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> ES->-> Assignment ->-> SD> Assign distribution channel to sales organization

 

3. Division

Division is a method of segregating different services, resources and products

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> ES->-> Definition ->-> Logistics – General ->-> Define, copy, delete, and check division

 Assigning Division to Sales Organization

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> ES->-> Assignment ->-> SD->-> Assign division to sales organization

 

4. Setting up Sales Area Set Up

Sales areas are group of organizational entities

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->->ES->-> Assignment ->-> SD->-> Set up sales area

 

5. How to Assign Sales Organization- and Distribution Channel to Plant

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> Assignment ->-> SD->-> Assign sales organization – distribution channel – plant

SAP Material Management Consultants will create Plant in SAP

 

6. Shipping Points

Shipping Points are entities where processing and delivery of goods takes place.

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> Definition ->-> Logistics Execution ->-> Define, copy, delete, check shipping point

 

7. How to assign Shipping Point to Plant

This function makes sure that goods produced at different plant can be sent to the clients at different points.

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> Assignment ->-> Execution of Logistics ->-> shipping point to plant assignment

 

8. Distribution Channels that are common for Master Data

This function helps identify distribution channels having common master data

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> SD->-> Master Data ->-> Define Common Distribution Channels

 

9. Divisions Common for Master Data Use

This function helps identify divisions having common master data

SAP Reference IMG ->-> SAP Customizing Implementation Guide (IMG) ->-> SD->-> Master Data ->-> Define Common Division

 

10. SAP Order-to-Cash cycle

Order-to-Cash is also known as OTC or O2C and is an integration position between SAP Finance (FI) and  SAP Sales and Distribution SD. It is process which starts with sales orders and ends with delivery of the goods or services.

 

11. Schedule Line Category (SLT)

This function guarantees that a material ought to have thing classification and MRP as for that the conveyance date is made. SLT makes sure that schedule lines are relevant for planning and delivery.

 

12. Availability Check

This function enables the user to check the products available in store.

 

13. Account Determination

 Through this one can determine customers detail type on condition type.

 

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