SAP sales & distribution

One of the main important modules developed by SAP is the module of sales and distribution or SD. This helps immensely in managing sales and the distributing data and processes to customers. This also supports efficient process work by working with the SAP SD modules closely.

This module belongs to the logistics area. It is included with the processes which are supporting 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 starting 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 the SD module as well as external to it For an example material management and financial accounting can be taken.

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

In SAP, there exists a structure inside the organization. And this structure is created for the module of sales and distribution. In the top level there is the sales organization. And this should be responsible for all the distribution and sales of the consumer goods and services. This organization is an entity when considered legally and has one company code. But company codes can consist from sales organizations more than one. Taking this into account from the area of logistics, the organization of sales has 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 will 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 that the organizations sell. 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 the function of sales.

Now let’s see some features of SAP SD. One characteristic of SD module is there are mechanisms which are included inside this in order to run or execute the processes in the business like selling, billing and shipping of products and services. And the data flow is coupled so tightly with other modules of SAP which in term, known as integration.

Another characteristic it has 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 will be happening automatically and in this process this gets connected to the SAP’s real time currency rate database which is in Germany. This helps for the operational use.