One of the primary ERP modules developed by SAP, SAP SD helps manage shipping, billing, selling, and transportation of products and services of an organization. This module is basically used to store customer and product data of an organization.
SAP SD is important as it is responsible for managing customer relationships starting from raising a quotation to the sales order to the billing of a product or service. Also, when integrated with other SAP modules, SAP SD becomes a really handy module when it comes to managing sales and distribution holistically.
The organization structure in SAP SD pertains to two major steps:
Sales organization appears at the highest level and is mostly used for distributing goods and services. It is advised to keep the number of sales organizations as minimum because that way the process of reporting can be streamlined.
A composite organizational unit of SAP SD, sales area enables the mapping of the real-life enterprise structure to the SAP representation of the company. Documents created in SAP Sales and Distribution module belong to specific sales areas.
No, it is not possible to make a delivery without a shipping point.
Yes, SAP MM (Material Management) module is integrated with SAP SD.
If a sales order is to be created in SAP SD, it is necessary to copy the details of items from SAP MM. Availability check of items, pricing, creation of inbound and outbound delivery of goods, shipping details, loading point, etc. are also managed from data which is ingested from Material Management.
Partner functions allow users to identify which partners perform what actions to a connected customer. These functions give a detailed account of people with whom business processes are carried out. There are several partner functions based on partner types.
Ship to party
Bill to party
Sales activities are those tasks that salespeople undertake to improve sales. All sales activities can be classified into two types:
Sales order processing pertains to functions that are related to the complete sales pipeline of an organization or business. These functions include:
T-codes for creating, editing, or displaying existing sales orders are given below:
VA02 – To edit a sales order
VA03 – To display a sales order
VA01 – To create a sales order
Examples: Sales orders, quotations, etc.
Examples: Sales calls, sales letters, etc.
Although not a legal document, inquiry under the pre-sales activity is used to record information about delivery or services to customers. This information is mostly related to materials and quality of goods. Users can use the T-code ‘VA11’ to create a new inquiry.
Unlike inquiries, quotations are legal documents sent to customers. Quotations contain information about the delivery of goods and services. To create a quotation, use the transaction code ‘VA21’.
Assume that there is an inquiry related to customer telephone in an SAP system. Then, a customer requests for a quotation which can be created if the same inquiry is referred. Further, the customer places an order in accord with the quotation. A sales order will be created by copying information from the quotation.
Once done, merchandise is shipped, and a bill is sent to the customer. After delivery, the customer raises a claim that the delivered goods are damaged. This is when a free-of-charge replacement can be initiated with reference to the sales order.
When important transactions in a sales document are required to be copied to another document, the process of copy control is incorporated. This process pertains to several routines which specify how data should be copied from source document to target document.
When it comes to SAP SD, pricing is defined as a process which specifies the calculation of prices and costs for both customers and external vendors. Pricing elements are defined as condition types in an SAP system. Condition types are nothing but a set of conditions or scenarios to be taken care of when pricing is assigned to a product or service. Various pricing elements are prices, surcharges, discounts, and taxes.
Product proposals are an important aspect when it comes to SAP SD. This is because these proposals help companies revamp their sales quotient by recommending products automatically during sales document processing. Product proposals can be mapped to specific requirements of business partners to match market requirements.
An outline agreement is basically a long-term purchasing agreement with vendors. This agreement contains terms and conditions regarding the material which is supplied by the vendors. There are two types of outline agreements that come under SAP SD. They are:
Go through the SAP SD Course to get clear understanding of Outline Agreement.
There are two types of contracts:
To create contracts, either:
Shipping is considered important as it is the only thing that guarantees eloquent customer service and delivery of goods. It pertains to outbound delivery, post goods issues, shipping communication, planning and monitoring of shipping, and picking and packaging of goods.
To define modes of transport,
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