SD module link with other module

The link between SD and MM

When you create sales order in SD, all the details of the items are copied from Material master of MM.                                                                                                                        

MRP and availibility check related data is also taken from MM although you control this data in SD also. 

While you create inbound/outbound delivery with reference to a sales order, the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master. 

The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.

There are many such links between SD and MM.

Now the link between SD and FI :

Whenever you create a delivery with reference to a sales order, goods movement takes place in the background. eg. In case of standard sales order, you create an outbound goods delivery to the customer.

Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account. 

The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI 

Tax determination: In case of a tax determination also, there is a direct link between SD and MM.

SD Integration points with other modules 

SD module is highly integrated with the other modules in SAP. 

Sales Order – 

Integration Points                      Module

Availability Check             -       MM

Credit Check                      -       FI

Costing                              -       CO/ MM

Tax Determination             -       FI

Transfer of Requirements   -       PP/ MM

Delivery & Goods Issue – 

Integration Points                      Module

Availability Check             -       MM

Credit Check                      -       FI

Reduces stock                    -       MM

Reduces Inventory $          -       FI/ CO

Requirement Eliminated    -       PP/ MM

Billing -

Integration Points                      Module

Debit A/R                         -       FI/ CO

Credit Revenue                 -       FI/ CO

Updates G/ L                    -       FI/ CO

(Tax, discounts, surcharges, etc.)

Milestone Billing             -       PS

Return Delivery & Credit Memo -

Integration Points                      Module

Increases Inventory            -      MM

Updates G/ L                     -        FI

Credit Memo                     -        FI

Adjustment to A/R            -        FI

Reduces Revenue              -        FI

For SAP ERP Training or SAP  SD  module link with other  Module Training please visit the links.

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Components of SAP SD Module

Components of SAP SD Module

The SAP SD module is one of the primary ERP moduledeveloped by SAP. SAP service and distribution deals in better management of sales and customer distribution data and processes in organizations. It works closely with other SAP modules towards effective process work. Other modules that SAP SD integrates are financial accounting (FI), controlling (CO), materials management (MM), and production planning (PP) and so on. All these collaborate together and enhance the work process in enterprises.

Components of SAP SD Module

SAP-SD-MD: Master Data

SAP-SD-BF: Basic Functions

SAP-SD-SLS: Sales

SAP-SD-SHP: Shipping

SAP-SD-TBA: Transportation

SAP-SD-FTT: Foreign Trade

SAP-SD-BIL: Billing

SAP-SD-CAS: Sales Support

Short Description Of each Component.

SAP-SD-MD (Master Data):

SAP SD user includes master data and the process involves tracking of each and every transaction within the data. The sales and distribution master data includes of customer master data, material master data, pricing conditions record, output records and credit management. From order to cash process, entire flow is being recorded in this module.

SAP-SD-BF (Basic Functions):

SAP SD configuration results in an effective process across all basic functions involved in sales and distribution area. Here, examples of basic functions can be pricing, output etc. The amount of pricing used for a particular sale and the output result from the same and so on.

SAP-SD-SLS (Sales):

As the term suggests, SAP SD sales handles minute details of every sale that is taken place. From recording the product to customer details, pricing, feedback and the sales process, everything is tracked through this module.

SAP-SD-SHP (Shipping):

Sales are closely related to shipping and delivery. A Product needs to be rightly shipped and delivered to the customer. There are different methods of shipping and this module track each one used for each delivery. The entire process from being shipped to delivered or return back is recorded through this module.

SAP-SD-TBA (Transportation):

This SAP SD component works closely with the above shipping module. A product can be either couriered or manually delivered. The mode of transportation is different for each one and is being tracked through this module.

SAP-SD-FTT (Foreign Trade):

This component helps a department to handle the data related to foreign trade including both imported products and products exported outside. This module works best for enterprises involved with trade across nations.

SAP-SD-BIL (Billing):

Billing is a major part in sales. Customers can pay either online using debit or credit card, through cash on delivery, or by using pay pal account and so on. To maintain a proper track for future reference, each bill detail is recorded through this module.

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.

These are some of the multiple components involved in SAP SD user for effective process work within sales and distribution job area.

For SAP ERP Training or SAP Components of  SD  Module Training please visit the links.  

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SAP SD _ Sales Documents_ Module

Sales Documents

In SAP there are a number of documents that are used in the sales and distribution process include customer inquiries, quotations, sales orders, sales order contracts, credit memos, and returns.

A customer inquiry is given to a customer or potential customer for an item. After the inquiry has been received by the sales office associated with the customer, the team can work on a response. The resulting sales document is a quotation that is sent back to the customer with the best price and conditions offered by a company.

A sales order is an agreement between a company and a customer. The sales document specifies the items to be delivered, the quantity, and the date of delivery of the items to the customer.

A sales scheduling agreement is similar to the sales order in the sense that the customer orders a range of items, price and conditions are agreed upon, and a delivery is arranged. The agreement schedules a number of deliveries to the customer over a period of time.

A sales contract is an agreement between a company and a customer for goods or services over a specified period of time. There are a number of contracts that can be created such as a quantity contract that specifies the total of the items to be sold to the customer over a period of time. A contact can also be based on value so that items are sold to a customer over a period of time up to a total amount. On occasion a customer will want to return items.

This may be because they are the wrong items, the items failed inspection, or they are not required. Depending on a company's return policy, it may require the customer to obtain a return merchandise authorization (RMA) number or it may allow customers to return items without an RMA. When the returns are processed, a credit is issued to the customer in the form of a sales document called a credit memo.

Credit memos can also be processed if the customer has been charged a price that is in excess of the agreed amount, if a discount has not been applied or if they have been charged for freight when the order included free shipping. The opposite of a credit memo is a debit memo and this can be created if a sales department has undercharged a customer for items on the sales order.

For SAP ERP Training or SAP Sales Documents Module Training please visit the links.  

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SAP SD Sales Organizational Structure

Sales Organizational Structure

Within SAP there is an organizational structure that exists for the sales and distribution module.

The highest level of this is the sales organization, which is responsible for the sale and distribution of goods and services. The sales organization is a legal entity and is associated with one company code, but a company code can have a number of sales organizations assigned to it. On the logistics side, a sales organization can sell products for more than one plant, and a plant can have more than one sales organization selling its products. It can be subdivided into a number of distribution channels which helps a sales force on getting the right products to the right customers at the right price.

The distribution channel that can be defined will depend on the products that a company sells, for example you can have channels that represent wholesalers, distributors, or direct sales. A good distribution channel strategy will help your company to increase sales, improve sales and marketing coverage, and reduce your costs across the sales function.

For each sales organization there can be one or many sales divisions. The role of the sales division is to structure the sales resources within the sales organization. The resources in a sales division are focused on a single customer or group of similar customers.
Sales Organization Chart.

For SAP ERP Training or SAP Sales Organizational Structure Module Training please visit the links.  

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