What is SAP SD? Introduction to SAP Sales & Distribution Module

By : Madeline Carter Madeline Carter
Hours Updated

What is SAP SD?

SAP Sales and Distribution (SD) is an important module of SAP ERP consisting of business processes required in selling, shipping, billing of a product. The module is tightly integrated with SAP MM & SAP PP. Key sub-modules of SAP SD are Customer and Vendor Master Data, Sales, Delivery, Billing, Pricing, and Credit Management.

Features of SAP SD module

Here are some important features of the SAP SD module:

  • Price and Taxation: – It helps you to evaluate the price of goods and services under various conditions like rebate or discount, which is granted to a customer.
  • Availability Check: Check the availability of a product in the warehouse of an organization.
  • Billing & Invoice: Helps you to generate bills or invoices.
  • Material Determination: Helps you to determine the details of materials on the basis of a certain condition.
  • Credit Management: It is a method of managing the credit limits of the customers. It can be figured in two different ways simple credit check and automatic credit check.
  • Account Determination: Helps you to determine the details of customers on the basis of a given condition type.

Key Components of SAP SD

The SAP SD module is the most vital ERP module developed by SAP. It helps in better management of sales and customer distribution data and processes in organizations.

The important components in SAP Sales and Distribution module are:

  • Master Data
  • Sales
  • Shipping of Material
  • Billing-Related
  • Sales support
  • Transportation of products
  • Foreign Trade
Key Components of SAP SD
Sub Modules of SAP SD

SAP-SD-MD (Master Data)

SAP SD has master data, which helps you to track each and every transaction within the data. The SD master data comprises of both customer and material data, and credit management. This module includes processes of order and cash.

Functions of Mater Data

Master data is the most important factor in the Sales and Distribution module.

There are two levels of masters in SD.

  • Customer Master
  • Material Master
  • Pricing Conditions

While the second level master store details like:

Output condition

  • Detailed information about customers, materials and business partners
  • Flexible data structures support the business environment.

SAP-SD-SLS (Sales)

SAP SD sales help you to handle the minute details of every sale that is taking place. Starting from recording the product to customer details, pricing, feedback, everything is tracked using this module.

Functions of Sales Module

  • Inquiries & Quotes
  • Sales Orders
  • Consignment
  • Scheduling Agreements
  • Rush Orders and Back Orders
  • Credit & Debit Memo Requests

SAP-SD-BIL (Billing Module)

Billing is the most crucial part of sales and distribution process. Consumers are given a choice of paying via online media or cash on delivery. This specific module should be keeping track of all the billing data in a proper way.

Functions of Billing Module

  • Automatic or manual Invoice Creation
  • The comprehensive set of billing functions
  • Real-time integration with finance
  • Fully integrated and comprehensive pricing

SAP-SD-SHP (Shipping)

Sales are always associated with shipping and delivery. A product needs to be shipped correctly and delivered to the customer.

There are different methods of shipping, and this module tracks each delivery for each product. This entire process from being shipped to delivered or return back is recorded using this module.

Functions of SAP-SD-SHP

  • Generate Shipping Documents
  • Picking, Packing & Inventory management
  • Transportation Management and Scheduling
  • Delivery Scheduling, Returns Deliveries
  • Stock Transfer

SAP-SD-TBA (Transportation)

This component works along with the shipping module. As the mode of transportation for each product differs, and this module helps you to track all the transportation-related data.

SAP-SD- TBA Features

  • It is a flexible and easy to use component which enables you to collect, consolidate, and utilize data from sales and distribution processing.
  • It is widely used for (LIS) Logistic Information System.

SAP-SD-CAS (Sales Support)

From selling a product to maintaining it for a process, customers constantly interact with the sales team. The data exchanged between the sales team and customers while delivering support for a product is recorded and reported through this module.

Sales Support

It offers functionality to support the staff, which is involved in business development and customer service related processes.

Functions of Sales support

  • Sales Prospects
  • Contact Persons
  • Competitors and Competitive Products
  • Sales Activities
  • Direct Marketing

SAP-SD-FTT (Foreign Trade)

It helps you to manage data, which is related to foreign trade, which includes both imported and exported products. This module is ideal for enterprises that trade across different continents.

Advantages of SAP SD Software

Here are advantages of SAP SD:

  • Track sales transactions
  • Tracks sales data along with team performance
  • Record pre-sale and post-sale process
  • Defined process for sales and distribution
  • Helps you to categorize diverse sales and process
  • Effective management of sales documents in a specific system

Summary

  • SAP Sales and Distribution (SD) is an important module of which consisting of business processes required in selling, shipping, billing of a product,etc.
  • 1)Price and Taxation, 2) Availability Check, 3) Billing & Invoice, 4) Material Determination, 5) Credit Management are some important features of SAP SD
  • Master Data, 2) Sales, 3) Shipping of Material, 4)Billing-Related, 5) Sales support, 6)Transportation of products, 7)Foreign Trade are some important components of SAP SD.
  • Master data, helps you to track each and every transaction within the data
  • SAP SD sales help you to handle the minute details of every sale that is taking place
  • SAP Billing module keeps the track of all the billing data in a proper way
  • SAP SD shipping module helps you record entire process from being shipped to delivered or return back.
  • SAP SD transportation module helps you to track all the transportation-related data
  • SAP SD sales support module record and report data between the sales team and customers
  • SAP SD foreign trade helps you to manage data, which is related to foreign trade
  • SAP SD helps you to track sales transactions along with team performance
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