Introduction to SAP Sales and Distribution

All ERP software supports every business process with its distinct modules helping to gain better visibility of analytics and in turn easing the entire cycle of operations of each module’s distinct process. SAP is one such player in the ERP world with 40+ years of expertise in providing unique business solutions drafted for your business’s needs.  

The core business modules offered by the SAP ERP software are:  

  • Human Resource Management (SAP HRM)  
  • Production Planning (SAP PP)  
  • Material Management (SAP MM)  
  • Financial Supply Chain Management (SAP FSCM)  
  • Sales and Distribution (SAP SD)  
  • Project System (SAP PS)  
  • Financial Accounting and Controlling (SAP FICO)  
  • Plant Maintenance (SAP PM)  
  • Quality Management (SAP QM)   

This article focuses on elaborating on the core functionalities of the SAP SD (Sales and Distribution) module. Let’s dive in to understand the Sales and Distribution module. 

Defining SAP Sales and Distribution Module

One of the main ERP modules designed by SAP is the SAP SD module which includes business procedures needed for product selling, shipping, and billing. The module and SAP MM and SAP PP are strongly connected to SAP SD through Customer and Vendor Master Data, Sales, Delivery, Billing, Pricing, and Credit Management which are important to SAP SD sub-modules. 

The SD module also strongly collaborates with other SAP modules to facilitate efficient process work. Financial accounting (FI), controlling (CO), materials management (MM), production planning (PP), and other modules are also integrated by SAP SD. These all work together to improve how work gets done in businesses. Better administration of sales and customer distribution data and processes in enterprises is a focus of SAP service and distribution. 

Organizational structure of SAP SD module 

The SAP enterprise structure in the SAP R/3 system is an organizational structure that represents the whole corporate structure. It consists of a few organizational units that are mapped to the business structure in accordance with certain business requirements, including Company Code, Plants, Storage Locations, Sales Organizations, Distribution Channels, Divisions, Sales Offices, Sales Groups, Salespersons, Shipping Points, and Loading Points. 

Legal business entities, sales offices, profit centers, etc. are a few examples of different SAP organizational units. The organizational units connected to the SAP SD module are listed below. 

  • Sales Organization  
  • Distribution Channel  
  • Division  
  • Sales Group  
  • Sales Office 
  • Sales Area 

Components of  SAP  Sales and Distribution  Module 

SAP SD Master Data (MD): The master data in SAP SD allows you to keep track of each and every transaction that occurs within the data. Customer, material, and credit management data are all included in the SD master data. The order and cash processes are covered in this module. 

SAP SD Basic Functions (BF): All fundamental tasks involved in the sales and distribution area are successfully completed as a result of the SAP SD configuration. Pricing, output, and other examples of basic functions can be used here. The amount of pricing applied to a specific sale and the resulting output, and so forth. 

SAP SD Sales (SLS): As the name implies, SAP SD sales take care of every sale’s tiniest details. Everything is tracked through this module, from the product’s recording to the customer’s information, pricing, comments, and the sales process. 

SAP SD Shipping (SHP): Shipping and delivery have a direct impact on sales. A product must be shipped and delivered to the customer correctly. There are various shipping options, and this module keeps track of which one was chosen for each delivery. Through this module, the entire process—from shipping to delivery to return—is documented 

SAP SD Transportation (TBA): The shipping module mentioned above closely coordinates with this SAP SD component. A product can be delivered manually or via courier. Each one’s means of transportation is distinct, and this module keeps track of it. 

SAP SD Foreign Trade (FTT): This element aids a department in managing data on international trade, covering both imported and exported goods. This module functions best for businesses engaged in international trade. 

SAP SD Billing (BIL): One prime component of the business is billing. Customers can make payments online using a debit or credit card, cash on delivery, a PayPal account, and other methods. Each bill detail is entered using this module to keep a correct record for future use. 

SAP SD Sales Support (CAS): Customers deal with the sales team daily, whether they are purchasing a product or sustaining it for a process. Through this module, the information shared by the sales staff and customers throughout the provision of product support is tracked and reported. 

These are only a few of the several elements that an SAP SD user needs to effectively complete process work in the sales and distribution job area. The SAP SD setup has many benefits, some of which are mentioned below. 

Advantages of SAP Sales and Distribution

  • Keep track of sales transactions. 
  • Tracks sales data while also monitoring team performance. 
  • Pre- and post-sale processes should be documented. 
  • Sales and distribution procedures have been established. 
  • Assists you in identifying and classifying various sales and processes. 
  • Efficient sales document management in a specific platform 

Conclusion

Implementation of SAP software has numerous benefits for the organization that implements it. The SAP SD module, in collaboration with other SAP modules, displays accurate and up-to-date data on sales and distribution-related activities. It displays customer orders, delivering to pending, orders pending, creditor status, and so on. It allows you to track your company’s KPI (Key Performance Indicator) to measure performance and run according to a calendar. SAP ERP and its other modules, such as SAP BI, SAP MM, SAP FI/CO, SAP SCM, and so on, essentially provide data comparison capabilities over multiple years to efficiently enhance your organization’s growth. 

Willing to know more about SAP ERP and its importance for your organization’s efficient functioning, feel free to contact our expertise! 

 

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