SAP Sales and Distribution is one of the key components of SAP ERP system and is used to manage shipping, billing, selling and transportation of products and services in an organization.
SAP Sales and Distribution (SAP SD) is a core functional module in SAP ERP Central Component (ECC) that allows organizations to store and manage customer- and product-related data. Organizations use this data to manage all of the sales ordering, shipping, billing, and invoicing of their goods and services.
SAP SD is part of SAP ECC’s Logistics function and integrates with other modules, including Production Planning (PP), Plant Maintenance (PM), Quality Management (QM), Materials Management (MM), Finance and Controlling (FICO), and Human Resources (HR).
SAP Sales and Distribution module is a part of SAP Logistics module that manages customer relationship starting from raising a quotation to sales order and billing of the product or service. This module is closely integrated with other modules like SAP Material Management and PP.
Key Components in SAP SD
In SAP Sales and Distribution module are:
Customer and Vendor Master Data
Sales Support
Shipping of Material
Sales Activities
Billing related
Transportation of products
Credit Management
Contract Handling and Management
Foreign Trade
Information System
SAP provides many components to complete SAP Sales and Distribution organizational structure like Sales Areas, Distribution Channels, Divisions, etc.
The SAP SD organization structure majorly consists of two steps:
Creation of Organization elements in SAP system
Second is to link each element as per requirement.
On top of this organization structure in the SD module, sales organization is at highest level and is responsible for distribution of goods and services. SAP recommends to keep the number of sales organizations in an organizational structure to be minimum. This will help in making the reporting process easy and ideally it should have a single sales organization. The next level is distribution channel, which tells the medium by which the products and services are distributed by an organization to its end users. Division in an organizational structure, which represents a product or service line in a single organization. A sales area is known as entity, which is required to process an order in a company. It comprises of sales organization, distribution channel and a division. In SAP SD organizational structure, each sales organization is assigned to a company code. Then the distribution channel and divisions are assigned to sales organization and all of these comprise to make a sales area. In the first step of an SD organizational structure, sales organization is assigned to a company code and then is to define a distribution channel and then division to a sales organization.
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