SAP SD module overview

What is SD in Sales and distribution? This is a component in Logistics area in SAP and it is the sales and distribution function. This module helps the companies to deal with the customers in the business processes. These business 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 and 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 will happen automatically and in this process this gets connected to the SAP’s real time currency rate database which is in Germany. This helps its operational use.

Flexibility and robust functionality is another feature it has. 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 along with other functions as well.

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 sales order is taken. Then MRP process is happening, then after that the production and delivery happens. Finally the invoicing of customer is done.

In a transaction mainly there are two things which will happen. They are buying and selling. A sale is a transaction which happens between two parties. These parties 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 and finally the customer will receive his goods. And in the other direction the customers make his payments. And the payment is received directly or indirectly by the supplier or buyer.

The channel of distribution in SAP SD depends on the goods 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 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 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 a good for the user. Then the sales office which is associated with the consumer will receive the inquiry of the customer.