An organization’s sales and distribution procedures are managed by the SAP SD, or SAP Sales and Distribution, module of the SAP ERP (Enterprise Resource Planning) system. It is one of the foundational modules in SAP and is essential to the order-to-cash and quote-to-cash cycles business processes.
Master Data Management
SAP SD manages a variety of master data objects, including price conditions, material master data, and customer master data. The basis for sales and distribution procedures is this data.
Management of Sales Orders
SAP SD enables users to produce, handle, and manage sales orders. This comprises operations like order entry, product availability checks, price calculations, and delivery document creation.
Billing
SAP SD allows you to create billing documents based on sales orders and delivery. Based on pricing conditions and other considerations, it computes the total amount to be invoiced to the consumer.
Output Management
SAP SD enables the creation of a variety of outputs such as order confirmations, shipping papers, and invoices in a variety of formats (e.g., print, email).
Pricing and Conditions
Pricing in SAP SD entails calculating product prices, discounts, taxes, and other charges based on a variety of factors. Complex pricing techniques and condition kinds are supported by the system.
Intercompany Sales
SAP SD offers intercompany sales, in which products are sold between various legal entities within the same company, for organisations with multiple legal entities. To ensure accurate transfer pricing and appropriate documentation, special procedures are required.
Shipping and transportation
To control the logistics and delivery of goods, you can set shipping locations, routes, and transportation zones in SAP SD. The technology aids in choosing the most effective shipping options and delivery routes.
Long-term sales contracts, which specify the terms and conditions for repeated deliveries over a predetermined period, can be created and managed with the help of SAP SD. These agreements simplify the ordering procedure for recurring clients.
Keep in mind that SAP SD is a complicated module with multiple functionalities, and that each organisation will have different needs for how it should be implemented. To customise the module to meet your business procedures the best, it’s frequently advisable to collaborate with SAP consultants or specialists.
