SAP SD – Sales And Distribution – And How It Can Help A Business Organization

At the enterprise level, managing sales and distribution channels is a process that requires an immense amount of sophistication. The sales and distribution channels can be spread all over the world and can entail managing multi-vendor ecosystem.

It also will have products and services of different kinds. All this simply means that an enterprise organization has to be extremely adept at juggling a diverse network of products, services, vendors, timeframe and do so cost effectively.

Thus, having enterprise level software such as SAP SD can go a long way in helping an organization enjoy benefits such as:

  • Cost effectiveness,
  • Smoother management of all aspects of sales and distribution,
  • Automation of routine procedures which will help do away with human errors,
  • Standardization of the different processes involved in management of sales and distribution channels,
  • Consistency of policies and communications procedures and
  • A better ability to harness information and use it for business analysis.

So what does SAP SD entail?
Quite a few SAP experts consider SAP SD to be one of the most critical applications of this enterprise level software. Sales and distribution can contribute massively to a business organization’s revenues. SAP training or the software itself has plenty of modules and applications. And SAP SD is one of them.


Chiefly, it involves learning and implementing about processes in areas such as:

  • Credit management,
  • Billing,
  • Managing sales orders,
  • Looking into pricing structure from multiple vendors,
  • Managing master data of customers,
  • Managing master data for materials,
  • Ensuring that the pricing and billing ecosystems operate smoothly.

Process oriented operations
At the enterprise level, a business organization cannot afford to have chaotic processes. Thus, even sales and distribution needs to be managed in such a way that there the organization can ensure that nothing is left out of the picture. Generally speaking, the process of sales and distribution with the help of SAP SD will consist of the following steps:

  • Creation of the contract or the price quotation
  • Making a sales order
  • Creating and managing the delivery document
  • Managing the billing document
  • Receiving the goods.
  • Printing of the invoice.

While this may be a very simple way of putting the sales and distribution process across, there are plenty of sub processes that will drive the system. For instance, once the delivery document has been created, it can undergo changes before the goods are received by the business.

There is also the aspect of support as far as creation and management of Master Data is concerned and such data will be applied to 5 main areas such as:

  • Customers
  • Materials
  • Pricing
  • Output
  • Credit

Information and analysis
One huge deliverable when it comes to SAP SD is creating, sustaining and using Sales Information Systems. This becomes especially complex and useful when the business organization is operating in foreign markets as well. Having the power of relevant and timely business information and being able to analyze the same leads to plenty of cost benefits and a competitive edge for any enterprise. Thus, SAP SD can make the difference to smoother management of sales and distribution channels.

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