SAP SD provides integrated sales and distribution functionality with key benefits:
1) It seamlessly connects sales processes with other business areas like accounting, materials management, and production planning for automated information sharing and end-to-end process visibility.
2) Processes like order processing, billing, inventory management, and reporting are automated with real-time updates and flexibility to meet business needs.
3) Functions like pricing, availability checks, credit management, batch tracking and more can be configured to best support the sales process with reduced errors and manual work.
SAP SD provides integrated sales and distribution functionality with key benefits:
1) It seamlessly connects sales processes with other business areas like accounting, materials management, and production planning for automated information sharing and end-to-end process visibility.
2) Processes like order processing, billing, inventory management, and reporting are automated with real-time updates and flexibility to meet business needs.
3) Functions like pricing, availability checks, credit management, batch tracking and more can be configured to best support the sales process with reduced errors and manual work.
SAP SD provides integrated sales and distribution functionality with key benefits:
1) It seamlessly connects sales processes with other business areas like accounting, materials management, and production planning for automated information sharing and end-to-end process visibility.
2) Processes like order processing, billing, inventory management, and reporting are automated with real-time updates and flexibility to meet business needs.
3) Functions like pricing, availability checks, credit management, batch tracking and more can be configured to best support the sales process with reduced errors and manual work.
SAP SD provides integrated sales and distribution functionality with key benefits:
1) It seamlessly connects sales processes with other business areas like accounting, materials management, and production planning for automated information sharing and end-to-end process visibility.
2) Processes like order processing, billing, inventory management, and reporting are automated with real-time updates and flexibility to meet business needs.
3) Functions like pricing, availability checks, credit management, batch tracking and more can be configured to best support the sales process with reduced errors and manual work.
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The following are the features and benefits of SAP SD:
SAP SD Features: All processes in business are connected and overlap with each other. SAP Sales and Distribution is no different and integrates with a variety of other business areas. Key integration modules with Sales and Distribution are Financials, Materials Management, and Production Planning. The integration of other business areas and SD interacts seamlessly and is automated distributing the right information, through the right channels, to the right segments with real time updates and Interaction between modules in other business areas provides you with a seamless and transparent processes and flow of information. Accounting: During the billing process in Sales and Distribution by creating an invoice, the system will create correlating accounting documents and post it to the necessary accounts automatically. Accurate & timely information leads to reduced reconciliation's and better management of the billing process leading to quicker payment and a reduction in accounts receivable, and even we can track number of disputes per order. Automatic Posting or Manual Posting based on the division requirement like (Export Sales). Material Management & Production Planning: In materials management, to control inventory a purchase requisition can be automatically created when a material ordered reduces the stock below a specified threshold. When a material is not in stock and availability date will be proposed based on production planning, and the production process of the material will begin. Automatic updating the Inventory book after PGI. Reports: Statistics are gathered and reports are created based on sales information and are available to your marketing department for analysis.
F.EX: 1. Consider this same sales order that has been placed. How does the person know if the material the customer is ordering is actually available and how long will it take to arrive? If the material is not available, the SD system interacts with the materials management or production planning module and uses scheduling to automatically propose an availability date. Whether this material is procured or produced all factors are considered in accordance with
duration when an availability date is proposed. If the material is available, a
delivery date is automatically proposed. The delivery date takes into account processing time within the warehouse before the goods are shipped, and takes into account shipping time based. Special instructions or requirements may also exist for the customer such as method of loading, packing, type of transport, shipping point, payment conditions, or delivery instructions. These are automatically taken from the material and customer master records and can vary for the same customer in different sales organizational units and for different materials. 2. With SAP SD, the process and master records are predefined and the person creating the order is asked for only a minimum amount of information. Order information is entered only once and is then updated throughout the sales process and available to all relative departments. Whatever your business process may be, from the initial order to invoicing can be automated. To achieve this you can use scheduling of tasks and collective processing of documents. Likewise you can place checks and balances on certain tasks to be approved or reviewed before processing. Current and complete information in any phase of the process is easily accessible. The document flow feature shows a sales document and all subsequent documents relating to it. This shows clear relations between documents in a proceeding sequence, so if there is a mistake it can easily be found and corrected. SAP SD Benefits: Pricing: Automatic determination and flexible definition of prices, discounts and surcharges as well as Tax for a business transaction Calculating quantity Discount and Secondary freight based on scales parameters. Approval and validate pricing systematically without duplication. Less manual intervention and mistakes in business transaction because of automation. Multiple Discount determination based on line items in single Invoice. Availability check: Automatic Stock availability check while creating Delivery order and loading advice Reduced loss of revenue due to items being out-of-stock. Fewer stock outages occur because there are more reliable materials buying processes/procedures in place. Credit Management: Lesser credit risks by comprehensive functionality in the credit management Party Credit limits fixing division.
Checking of overdue Invoice and open items division or Sales document type wise (Cash Sales/Credit sales). Reduce risk of bad debt Automatic credit-worthiness check and Accelerate the process of checking a customer credit limit Identify the overall credit risk of your company Division wise customer performance analysis.
F. ExConsider a Company creates a credit limit for Customer of 200,000. Divided the customer credit limit based on division wise like BF (100000), IC (50000) and VRC (25000), FMCG (25000). So, Customer can purchase the product from the company on credit till the credit limit 200,000 and it will also check the division wise limit is reached. Customer gives an Order # 1 of amount 50000 for BF. Again Customer gives an Order # 2 of the amount 60000 for BF. Now, the total open order crosses credit limit of a customer. Order 2 is blocked by the system due to credit limit reached or either system will not save the sales order / Delivery order. Batch
determination: Automatic batch determination at loading advice level based on GRN date. Traceability in case of complaint and recall issue. Usage of batch characteristics to manage which batch fits to a specific requirement. Excluding the expiry batch at the time of delivery order/loading advice.
Party Code: Single party/customer code across all the plant and company code. Duplicate customer creation check based on the TIN Number. Execution time: All the above automations are likely to shorten the time spent on transactions for the entire set of sales transactions (Contract to Invoice Cycle.) from over 30 minutes to under 5-8 minutes. minutes Single Delivery order with reference to multiple contracts. Single Contract across the plant, but at the time of delivery order they can change the dispatch plant from where they want to ship the goods. Listing and Exclusion of material: Material exclusion / listing provide a provision to restrict a customers buying choices. For example, if certain materials are defined in Exclusion List of a specific customer, then, the customer cannot buy material from Exclusion List. F. EX-
A company produce 10 materials and company want to sell only 6 material to
customer ABC then company create a list of these 6 material as Listing List (products that can be ordered) and remaining 4 material may be in Exclusion List. In this scenario Customer can buy only 6 materials from Listing List.
