Sap library sales and distribution

Sap library gives us the knowledge and facts about SAP. Let’s see what it states about the sales and distribution in SAP.

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

This particular module covers path of a business initializing from the initialization and up to the fulfillment of orders. The processes included in the life cycle of an order are connected or linked within SD as well as external to SD. As an example material management and financial accounting can be taken.

There are some processes in Sales and distribution and also Sales. The processes included in Sales and distribution or SD is first an inquiry is taken, and then quotation is given, after that sales order is taken. Then MRP process is happening, then after production and delivery finally the invoicing of customer is done.

Including in SAP, there exist a structure in the organization. And this structure is for the module of sales and distribution. In the top level there is sales organization. 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 be consisting from sales organizations more than one. Taking this into account from the area of logistics, we can say the organization of sales have the ability to sell their 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 organizations sell. As an example suppose a person has channels of distribution like distributors, direct sales ad 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 the function of sales.

In each sales organization there can be more than one sales divisions. 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 fr 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.