What is 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 in 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.

The SAP ERP Sales and distribution gives the users many services. It mainly helps industries by giving solutions for their sales management. This is a component of the logistics module. This helps the customers. This is done by initially from quotations, ordering of sales and also helping all the processes towards the customer billing finally. This is integrated with PP and MM modules of functions. This provides facilities for customers to input sales price of customers, forecasting and also checking the open orders etc. which is of great advantage.

Including in SAP, there is an organizational structure. 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. Legally this organization is an entity and has one company code. But company codes can consist of sales organizations more than one. Taking this into account with the area of logistics, the organization of sales have 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 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.

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. These are some details the sales and distribution of SAP. It is very important to know about SAP sd because today sales and distribution plays a major role in society.