SAP SD MODULE

A key element that manages several sales and distribution-related business operations in SAP (Systems, Applications, and Products) is the Sales and Distribution (SD) module. The SD module integrates with other SAP modules, including Production Planning (PP), Finance (FI), and Materials Management (MM), to enhance corporate operations.

The following are the main functions that SAP's Sales and Distribution module normally covers:

Processing sales orders include drafting and overseeing these documents, which are a customer's request to buy goods or services. The module supports the sales order lifecycle at every stage, from conception to delivery.

Pricing and Conditions: SD allows pricing structures to be set up according to certain parameters, such as date, quantity, and customer. Establishing price criteria helps to calculate the ultimate cost of a good or service.

Delivery Processing: As soon as a sales order is created, the system begins to generate delivery papers. This document contains a list of the items that need to be shipped, the delivery date, and other important information.

Invoicing and Billing: The module controls the generation of bills based on the products or services that are provided. Billing records and accounting entries are produced simultaneously.

Credit Management: Among SD's responsibilities are credit management, credit block management, and monitoring customer credit limitations.

Availability Check: Before authorizing a sales order, the system does an availability check to ensure that the requested products are in stock and can be delivered on time.

Output Determination: Businesses can utilize this feature to define and manage the output forms for sales documents, such as order confirmations, invoices, and delivery notes.

Customer Master Data: The SD module stores and maintains customer master data, which consists of contact details, shipment details, and terms of payment.

SD is strongly linked to other SAP modules, such as manufacturing Planning (PP) for processes related to manufacturing, Finance (FI) for accounting, and Materials Management (MM) for inventory management.

The sales process of SAP SD aims to provide a comprehensive, integrated approach to managing the sales and distribution cycle from start to finish. Users can do these operations using the SAP GUI (Graphical User Interface) or more modern interfaces like SAP Fiori. Additionally, SAP SD provides a number of analytics and reporting tools for monitoring and assessing sales performance.

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