Sap in sales and distribution

Sales can be defined as a transaction between a buyer and seller where the buyer receives the good and a seller sells it. Distribution is where the good which is ordered by the customer is moving to the customer via a distribution channel and in the opposite direction the payment from the customer gets done.

This executes business processes like shipping, billing, and also selling of the products and services to customers. So, let’s see some components of this module. They are sales support, master data, shipping, credit management, foreign trade, billing, transportation and sales information systems.

The SD or sales and distribution is a component of SAP which belongs to the area of logistics. It is included with processes which supports businesses or companies to deal with their customers. Some of the processes are receiving orders through the telephone, internet or EDI, giving quotations to the users, shipping and also billing goods to the consumers when they receive products.

Also there are main functions in sales and distribution. Some of them are inquiries and quotes, sales orders, sales returns, assignments etc.

Inside SAP, you will be able to find that there is a structure within the organization. And this structure is in the module of sales and distribution. In the upper level the sales organization is located. And this should be responsible for all the distribution and sales of the consumer goods and services. This organization is an entity legally and has one company code. But company codes can consist of sales organizations more than one. Taking this into account from the area of logistics, the sales organization has the ability to sell one product to one or more plants. And in the same way, the plant can also contain organizations more than one who sell their products. This also can be divided again into many distribution channels which support sales force for getting these right products for the right customers and also at the right price.

The channel of distribution mentioned earlier is defined depending on the goods the organization is selling. As an example, suppose a person has channels of distribution like distributors, direct sales and wholesalers. The choice of a best distribution channel strategy will support the organizations in order for the growth of their sales, coverage of the market and also it will lower the expenses in their sales

In each sales organization there can be more than one sales division. The responsibility of this organization is to structure the resources of sales inside the organization. These resources in the division are aimed on an individual user or group of like resources. Firstly an inquiry is provided to the user for a good. Then the sales office which is associated with the consumer will receive the inquiry of the customer. And this particular team can work on a response. Finally the document of sales which is associated is a quotation which will be sent again for the consumer for a good price and also conditions given by the organization. This is a bit of some details about the sales and distribution of SAP.