SAP SD | Learn and Master SAP ABAP - Software Development PDF Download

Introduction

SAP Sales and Distribution (SD) is a module within the SAP ERP system that manages all aspects of a company's sales and distribution activities. It is designed to streamline and automate these processes, providing users with tools to manage customer interactions, sales data, and inventory levels. By integrating with other SAP modules, such as Material Management (MM) and Financial Accounting (FI), the SD module provides a comprehensive view of an organization's sales operations. The SD module is divided into several sub-modules, each of which performs specific functions.

Sub-modules of SAP SD

• Sales: This sub-module deals with the creation and processing of sales orders. It allows users to enter and track customer orders and provides tools for analysing sales data and forecasting future demand. It also includes functionalities like inquiry, quotation, and contract management, and credit management.
• Customer and Vendor Master Data: This includes details such as the company name, address, contact information, and payment terms. This information is used by various SAP SD transactions, such as sales orders and invoices, and is used to automatically populate fields in these transactions when a specific customer or vendor is selected.
• Credit Management: It is used to set credit limits for customers, monitor credit usage, and determine when to release or block sales orders based on a customer's creditworthiness. When a sales order is created, the system checks the customer's creditworthiness based on the credit check procedure and credit limit assigned to them. If the credit check fails, the sales order is blocked and can only be released by a credit representative.
• Shipping: This sub-module deals with the physical movement of goods. It allows users to create and process delivery documents, such as delivery notes and shipping confirmations. It also includes functionalities like packing and transportation planning.
• Billing: This sub-module deals with the billing of goods or services. It allows users to create and process invoices and credit memos and provides tools for analysing billing data and managing customer accounts.
• Pricing: This sub-module deals with the determination of prices for goods and services. It allows users to define pricing conditions, such as discounts and surcharges, and provides tools for analysing pricing data and managing price lists.
• Sales Support: This sub-module deals with the support activities for sales. It includes functionalities like sales-related activities such as sales reporting, sales analysis, and sales forecasting.
• Foreign Trade: This sub-module deals with the management of import and export activities. It allows users to manage the documentation and processes required for importing and exporting goods, such as customs declarations and letters of credit.

Key Advantages of the SD Module

• Integration with other SAP Modules: It can be integrated with the Material Management (MM) module, which manages the procurement and inventory of goods. This integration allows users to view inventory levels and track the availability of goods, which helps to ensure that sales orders can be fulfilled on time. Additionally, the SD module can be integrated with the Financial Accounting (FI) module, which manages financial data such as accounts payable and accounts receivable. This integration allows users to view customer accounts and track sales data, which helps to improve financial forecasting and budgeting.
• Automation of Sales and Distribution Process: It can automatically create and process sales orders, delivery notes, and invoices, which helps to reduce the time and effort required to manage these processes. Additionally, it can automatically determine prices for goods and services, which helps to ensure that prices are always up-to-date and accurate.
• Reporting and Analysis Tools: It can be used to create reports on sales trends, customer interactions, and inventory levels, which helps managers to make informed decisions about their sales operations. Additionally, it can be used to analyse pricing data and identify opportunities to optimize prices and increase profitability. It helps users to gain insights into their sales and distribution data.