The use of SAP Sales and Distribution (SD)

the use of SAP SD in organization

Since SAP has come a long way in adopting various modules for different processes in an organization, it has been adopted by a host of companies from across the globe to enhance the process works in various departments. From human resource management to sales and distribution and from financial accounting to materials management, SAP has a wide range of modules for different job areas. 

SAP Sales and Distribution (SD) is one of the most popular modules of the primary Enterprise Resource Planning (ERP) developed by SAP. SAP service and distribution deals in better management of sales and customer distribution data and processes in organizations. It allows organizations to store and manage customer- and product-related data. Organizations use this data to manage sales orders, shipping, billing, and invoicing of their goods and services.

SAP SD works closely with other SAP modules towards effectiveness while integrated into others, such as financial accounting (FI), controlling (CO), materials management (MM), and production planning (PP). All these collaborate together and enhance the work process in business operations.

 SAP SD configuration requires adequate knowledge on handling SAP-developed software products as the SAP SD module has multiple components that integrate different processes within the job area.

In a typical cycle, SD generates a sales quote and the customer then places a sales order, the goods are picked from a warehouse or production facility and shipped to the customer, an invoice is sent with the order, and accounts receivable settles the payment with the customer. Each step in the process generates transactions in the SD module, which then generates further transactions in the other ECC modules.

For example, when a sales order is generated in SAP SD, it establishes a link for a product availability check to SAP MM, a credit check to SAP FICO, or a tax calculation to FICO. 

SAP SD revolves around master data stored and manipulated in centralized master data tables.  

SAP SD is part of the modules in Post-Graduate Diploma in Supply Chain and Logistics Management. Become a supply chain and logistics professional in 36 weeks, enroll in the program at the next intake. Let’s find out if you qualify for provincial government funding through this free assessment.

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