SAP SD Module full form is SAP Sales and Distribution and this is one of the key module of SAP. It will cover the processes of O2C Cycle (Order to Cash). It will cover all the activities / sales functions which starts from Sales orders to payment processing.
Process Flow – SAP Sales and Distribution
The Following is the process flow of SAP Sales and Distribution. There will be many sub processes in between the following processes. We will discuss this in coming chapters,
The Above is the O2C cycle. It covers the activities from Sales orders to payment process.
Sales orders
Based on the customer orders, Sales team will create the sales orders in the SAP with all details like Material, Qty, Specs … etc.
Availability Check
Based on the Sales orders, Respectvie teams will check the stocks and Match with the requirement. If it is ok, the same will be updated to process the despatch of the material. If not avaialble in stock, notify the respective teams to produce the materials
Outbound Delivery (OBD)
Once Material available, Logistics team pick and Pack the materials. Once data ready, Outbound delivery will be created in SAP. This covers all the details of materials which includes material code, description, batch, quantity…etc
Post Goods Issue (PGI)
Based on the OBD, Goods Issue done in the system and stock will be reduced based on the transaction. Once goods issues, stocks will be reduced from respective plant and storage locations.
Invoicing
Based on the OBD and PGI, Invoicing will be done with all pricing and Tax details.
Transportation
Once the invoicing completed, the material will be moved from the source location and Moved to destination/customer location through the selected transport mode.
Delivery
Transporters will ensure the materials delivered as per the order and confirm the source team.
Payments Processing
Once Materials accepted by the customer, the payments will be adjusted as per the company policy.