Sales and distribution in sap

Firstly let’s look at what is Sales and what is distribution. Sale is a transaction which happens between two parties which are buyers and sellers. Here buyer will get the goods and whereas sellers sell the goods.

The distribution is the process of moving the product and service towards the customer finally the customer will receive his goods. And in the other direction the customers pays his payments. And the payment is received directly or indirectly by the supplier or buyer.

Let’s see what is SD in Sales and distribution? This is a component in Logistics area in SAP and it is sales and distribution function. This module helps the companies to deal with the customers in the business processes.

The processes include giving quotations to the customers, receiving orders through the telephone, internet or EDI, shipping the goods and finally delivering the goods to the hands of the consumer.

Some of the characteristics of SD module are there are mechanisms which are included in order to run or execute the processes in the business like selling, billing and shipping of products and services.

The data flow is coupled so tightly with other modules of SAP which in term, known as integration.

Another characteristic is its multilingualism or multicurrency. Here the users have the opportunity to use any language they would love. The conversation which happens between the currencies is happening automatically and in this process this gets connected to the SAP’s real time currency rate database which is in Germany. This helps operational use.

Another feature is its flexibility and robust functionality. This is catered through configuration. Here R/3 helps the customer to fulfill specific requirements or needs in order to suite the organization. This gets done by IMG or implementation guide with other functions as well.

Other feature is it is very flexible in pricing. Here very complex schemes of pricing are created. And this depends on customers, promotions and also sold goods.

Another feature SD has is its simplicity in the entry of orders. Here the user enters all the information of hos order to the window. And in order to access them, a simple order which are header, item and schedule line information are there respectively.

It is also very comprehensive in its reporting. The SIS known as sales information systems gives users to store, consolidate and report data by the users in various formats.

In the batch processing of orders it is very flexible. The deliveries, invoices, orders and also other documents of sales are created in the form of a batch. And also it is based on the type of order, material or customer. This batch processing can be used to run as tasks in background in order for the balancing of the processing load.

This organization is an entity legally and has one company code. But company codes can be consisting from sales organizations more than one. Taking this into account from the area of logistics, t he organization of sales have the ability to sell their one product to one or more plants.