Sub-Module / Component | Purpose |
Master Data | Manages customer master, material master, pricing conditions |
Inquiry & Quotation | Handles customer inquiries and quotations |
Sales Order Processing | Creation and management of sales orders |
Pricing | Determines pricing, discounts, taxes, surcharges |
Availability Check (ATP) | Checks product stock availability |
Shipping & Delivery | Outbound delivery, picking, packing, shipping |
Transportation | Shipment scheduling and transport planning |
Billing & Invoicing | Invoice creation and billing documents |
Credit Management | Controls customer credit limits and risk |
Sales Support (Pre-Sales) | Supports marketing and customer engagement |
Foreign Trade / Export | Manages export and international trade processes |
Integration with MM | Coordinates with Materials Management for inventory |
Integration with FI | Integrates billing data with Financial Accounting |
Organizational Structure in SAP SD
SAP structures organizations hierarchically for efficient sales management. The client serves as the top enterprise level, encompassing all company codes and shared data across the system.
Financial Unit - Company code is the key entity for preparing financial statements like balance sheets and profit/loss accounts in FI.
Sales Management – The sales organization supervises all commercial activities, including customer dealings and contractual processes, for an assigned business segment.
Sales Pathways - A distribution channel defines routes like retail or wholesale for product sales, enabling channel-specific pricing and data.
Product Segments- Division groups related products, allowing separate handling of product lines.
Core Sales Domain - The sales area combines sales organization, distribution channel, and division; it governs all sales documents from inquiries to billing.
Regional Branches - Sales office represents a geographic sales unit, aiding in regional reporting and oversight.
Team Structure - Sales group organizes sales staff within an office for performance tracking.
Production Sites - Plant denotes a physical site for manufacturing, storage, or distribution, executing customer deliveries.
Inventory Zones - Storage location subdivides plants for precise stock management.
Outbound Logistics - Shipping point manages delivery processing, including picking, packing, and goods issues.
SAP SD Process Flow: Order-to-Cash Cycle
- Sales Process Flow - The SAP SD process starts with pre-sales, where customer inquiries are logged and quotations are prepared with proposed pricing and terms.
- Order Processing - Next, a sales order is entered using customer details, items, quantities, and automatic pricing, confirming the purchase commitment.
- Stock Verification - The system performs an ATP check to verify material availability and propose realistic delivery dates.
- Outbound Logistics - An outbound delivery document is created, followed by picking items from storage locations.
- Post-Picking Steps - Packing is completed, and the goods issue is posted to deduct inventory from stock.
- Invoicing – Based on the delivery details, the system prepares a billing document that triggers invoice creation and ensures proper integration with the accounting module.
- Accounts Receivable - Finally, incoming payments are recorded in financial accounting, completing the order-to-cash cycle.
Integration of SAP SD With Other SAP Modules
SAP courses online are here to help a business to grow, improve cashflow and enable stronger customer relationships through increased revenues by preparing future leaders. In this course candidates will be learning how other modules are integrated with SAP SD.
1. Integration with SAP MM (Materials Management)
What it integrates:
- Availability check (ATP)
- Transfer of material data
- Inventory updates after Goods Issue
- Procurement process for third-party sales
Benefits:
- Real-time stock visibility
- Automatic inventory reduction after delivery
- Smooth coordination between sales and purchasing
- Avoids stock shortages and over-selling
2. Integration with SAP FI (Financial Accounting)
What it integrates:
- Automatic posting of billing documents
- Customer receivables creation
- Revenue and tax postings
- Payment updates
Benefits:
- Automatic accounting entries
- Accurate financial reporting
- Real-time revenue tracking
- Reduced manual accounting errors
3. Integration with SAP PP (Production Planning)
What it integrates:
- Make-to-Order (MTO) process
- Demand transfer from sales order to production
- Production scheduling
Benefits:
- Production based on actual sales demand
- Reduced excess inventory
- Better production planning and control
4. Integration with SAP WM (Warehouse Management)
What it integrates:
- Picking and packing activities
- Storage bin management
- Goods movement tracking
Benefits:
- Efficient warehouse operations
- Accurate stock tracking
- Faster order fulfillment
5. Integration with SAP QM (Quality Management)
What it integrates:
- Quality inspection during delivery
- Inspection results before shipment
Benefits:
- Ensures quality products are delivered
- Reduces customer complaints
- Improves customer satisfaction
6. Integration with SAP CRM (Customer Relationship Management)
What it integrates:
- Customer data synchronization
- Sales activities and opportunities
- Marketing campaigns
Benefits:
- Better customer relationship tracking
- Improved sales forecasting
- Enhanced customer service
Key Features of the SAP SD Module
Customer and Material Master Data Management – Maintains accurate customer and product information for sales processing.
Inquiry and Quotation Processing – Manages pre-sales activities and price quotations for customers.
Sales Order Management – Handles creation and processing of customer sales orders.
Pricing and Condition Technique – Automatically determines prices, discounts, and taxes.
Availability Check (ATP) – Before confirming the order, real-time product availability is checked.
Credit Management – Tracks customer credit limits to minimize financial exposure.
Delivery and Shipment Processing – Controls the outbound delivery and shipment processes.
Pick Packing and Goods Issue – Manages picking, packing and goods issue in warehouse operations and inventory is updated after goods issue.
Billing and invoicing – Automatically generates invoices and posts to the financial books.
Returns and Refund Processing – Processes returns of products and credits related to them.
Third Party and Intercompany Sales – Facilitates external vendor supply and cross-company dealings.
Output Determination – Document output (such as print, mail, and EDI) is automated.
Foreign Trade and Export Processing – Takes care of foreign sales and export documentation.
Business Benefits of Implementing SAP SD
An SAP SD implementation allows companies to handle their entire sales management from sales inquiries to payments, with faster and more accurate processing of orders. It reduces manual efforts, automates pricing, billing, credit checks, inventory modifications and other related processes, resulting in fewer errors and greater efficiency.
SAP SD supports increased access to sales statistics, customer data and income in real-time. Since it is fully integrated with the finance, inventory, manufacturing and warehouse modules, the company can now make better decisions, coordinate better on the departmental front and respond better to customers. It also enhances customer satisfaction because of on-time deliveries, thereby ensuring the accuracy of invoices and efficient management of credit.
Conclusion
SAP SD enables organizations to streamline and monitor their sales processes within SAP ERP. SAP SD consultants are evergreen because the module is essential to every sector and there is an enormous potential for growth in your salary and your job. If you are willing to start your career in SAP SD, the very first thing you need to do is get the right training.
Srijan Institute offers an
SAP SD Course online, which offers hands-on, industry-centric training that can empower you to learn actual skills and get confident.
FAQs Related to SAP SD Modules
Q1: What is SAP SD?
A: SAP SD is involved in processing the sales and distribution module from query to cash.
Q2: What are the essential elements in SAP Sales and Distribution?
A: Sales, Delivery/Shipping, Billing, Transportation, Credit Management and Foreign Trade represent some of the windows of the sales lifecycle and the modules to handle the stages of the sales life cycle.
Q3: What is a condition record in SD pricing?
A: Condition record stores specific price/discount data for customer/material/combination valid for dates.
Q4: How can I activate the ATP check during sales order creation?
A: ATP is a combined check of stock, purchase orders, and production status in real time to confirm quantity and date, thus helping to avoid overselling.
Q5: How does SD to FI integration work in billing?
A: Billing documents can be posted automatically to the FI General Ledger, Customer Accounts Receivable, and CO Revenue, thus updating financial records instantaneously.
