SAP SD MODULE Beginner Friendly

SAP (SD MODULE)

1. INTRODUCTION

ü SAP SD which means sales and distribution that is used to manage and control the sales flow process in a company.

ü This module is used to sell products to the customer from a company according to their needs and price quotation.

ü According to the customer’s requirement and their budget company needs to quote the amount. If the customer accepts that quotation they will go to next process.

FLOW

INQUIRY -> QUOTATION -> SALES ORDER -> DELIVER -> BILLING -> PAYMENT

2. ORGANIZATIONAL STRUCTURE

In Organizational Structure there are 5 main things

1.Client

2.Company Code

3.Sales Organization

4.Distribution Channel

5.Division

In most of the times beginners confused that who is client, what is company code, whether customer is client .

Here is a simple structure to explain that clearly

CLIENT(TOP LEVEL) -> COMPANY CODE(COMPANY) -> SALES ORGANIZATION ->

DISTRIBUTION CHANNEL -> DIVISION

Let me give a easy example to understand the concept

SAP Term

Example

Client

College

Company Code

Department

Sales Org

Class

Customer

Student

3. SAP SD PROCESS FLOW

STEP1: INQUIRY

ü In this step Customer enquires about the price and availability of the required product to the company. Inquiry process is the starting stage of a SAP System.

T-code: VA11

STEP2: QUOTATION

ü In this step company gives the quotation to the customer according to their budget and requirements. If the customer accepts the company’s quotation they move with the next process.

T-code: VA21

STEP3: SALES ORDER

ü If the customer accepts the quotation the next step is sales order. Sales order which means the main document.

T-code: VA01

STEP4: DELIVERY

ü After creating main document for the sales order the next step is delivery.

ü In this delivery process the products which ae ordered by customers will be packed in the warehouse and it will reach the customer in the right time.

T-code: VL01N

STEP4: BILLING

ü In this billing process invoice will be generated for the customer.

T-code: VF01

STEP5: PAYMENT

ü In the payment customer will provide the decided payment to the company.

4. SUMMARY

In conclusion , The SAP SD module is the most important part in an organization.

Every organization requires sales and distribution module