From the course: Learning SAP SD (Sales and Distribution)

Process of SAP SD - SAP ERP Tutorial

From the course: Learning SAP SD (Sales and Distribution)

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Process of SAP SD

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- [Instructor] The SAP Sales and Distribution module, commonly referred to as SAP SD, is the key component that handles the selling, distribution, and billing of a company's products and services. The SAP Sales and Distribution module has several key parts. Let's look at the most common components. First, accurate master data must be set up to enable the sales process. This includes material masters, customer master data, and managing the customer's credit worthiness. Pricing conditions must also be defined to allow for dynamic pricing schemes. Next, there are numerous sales documents available. In the pre-sales process, quotations provide offers to customers for specified time frames. Sales orders record actual sales with all the important details and contracts outline long term sales commitments between the business and a customer. Third, the distribution components of this module handle the logistics of outbound deliveries and goods issues, which officially transfer the ownership of an item from the company to the customer. Finally, billing and returns components handle invoicing customers and handling return orders for any unsatisfied customers. SAP SD is best visualized when broken into the sales cycle. First, accurate master data must be present in the system. This master data includes customer records, material records, which are your products or services, and pricing information amongst other things. This master data touches every step of the sales cycle. Once master data is set up, pre-sales actions are first. This step is where customer inquiries and legally binding quotations are created. Next is sales where one off sales orders are created and recorded in the system. This is also where long term outline agreements, like contracts and scheduling agreements are created. Third is distribution. This is where delivery documents are created and goods are picked from the warehouse, packed appropriately, and then shipped to customers. Last is billing where billing documents and invoices are created. If anything from the order is unacceptable to the customer, the return process is started here by creating a return order. The Sales and Distribution module is integral to organizations running SAP. It houses the key transactions used in the selling, distribution, and billing of goods and services.

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