The SAP SD process flow steps are as follows:
SAP SD supports the whole order-to-cash process chain, from customer inquiry to sales order to product delivery to the customer's preferred location, as well as invoicing and payment collection. Shipping, packing, and Picking activities are among the logistics execution modules that are heavily interconnected.
SAP SD was designed to handle all of a company's sales and distribution processes on a daily basis. A business can plan and carry out the steps required in receiving sales orders, executing availability checks, and so on;supplying the supply chain with the requirements, including those derived from sales predictions; and then converting them to expertise production planning, scheduling, production, production scheduling, and purchasing. The materials are then moved to the distribution end of the sales activities, which includes shipping, transportation planning, and yard management, via warehousing and inventory management.
SAP ERP Sales and Distribution (SAP ERP SD) integrates with other SAP ERP functions such as SAP ERP Materials Management (SAP ERP MM) and SAP ERP Logistics Execution (SAP ERP LE) to cover an organization's whole order-to-cash process.
The SAP ERP SD software package is designed to capture practically all business activity, and it allows you to construct custom solutions to bridge the gap between the prepackaged application and the desired state if standard capability isn't available. Out-of-the-box most common business tasks are covered by SAP ERP SD functionality, which is universal across most sectors. The following is a high-level overview of the process flow.
In real-world circumstances, the firm must collect basic data and build master records in the system for existing or potential consumers, or develop data for persons, sales prospects, and existing customers before the transaction can take place. After that, the real contact or sales deal with the sales prospects is made, which can then be documented as a SAP ERP SD document in the form of an inquiry or quotation. We can also specify critical sales-related data that could be accessed for reporting, evaluating sales efforts, managing marketing money, and finally converting to sales orders. All of these activities fall under the SAP SD Pre Sales activity.
The recording of the real sales order or sales request is the first step in the order processing process. Sales orders can be recorded by back office workers, sales team, or directly by the customer. It can be done by the consumer using a web application or an EDM (EDI). Alternatively, you can use an XML interface. Customer, partner (sold-to, ship-to, bill-to, payment conditions), material, quantity, pricing, delivery date, and shipping and transportation information for delivery are all included in the sales order. At the time of order generation, a material/product availability check is performed, which triggers any necessary procurement requests. The sales order's requirements can be met using available in-house stock inventories obtained by the replenishment team.
The delivery documents are prepared on the shipping due date, the route is chosen, and the picking, packing, staging, and loading procedure in Warehouse Management begins. Data from the delivery document is copied into the transfer order. Grouped deliveries, wave picking, and two-step are all standard SAP features. The confirmation of the transfer order completes the picking activities in the warehouse. Transfer orders can be executed as printed pick tickets or in electronic form using radio frequency (RF) devices on the warehouse floor. We can start engaging with freight service providers, start the tendering process, and finish by preparing the shipping cost document, which captures the payable actions linked to the delivery of goods to your clients, if transportation management capabilities are enabled. Picking begins with the delivery packing list and bill of lading. The posting of the product issue completes the process, resulting in stock movement or a confirmation of service, which reduces your on-hand inventory balance and updates the SAP ERP Financials balance sheet accounts (SAP ERP FI).
The final step before collecting a customer's money is to create a billing document or invoice, which is then sent to the customer's bill-to party. Data is copied from either the sales document or the delivery document and other billing papers to create credit or debit memos, just as it is with the delivery document. We perform account determination and appropriate SAP General Ledger (G/L) account posts that debit the customer's receivables and credit the revenue account when we prepare the billing document.
The stock movement data was stored in the material documents that were created when the goods issue was posted, as well as a subsequent accounting document. The purchase order for the transportation service provider became an account payable entry, and the customer's payment was likewise filed against the invoice or billing document.
Finally, all operations in the SAP SD process are reflected in the system as documents, master data, and pricing records, and they are used as a foundation for reporting and analysis in the Sales Information System (SIS) or SAP BW.
The inquiry is a sales document that keeps track of the information concerning the customer's queries. Customers inquire about the availability of a specific product, how much it costs if it is available and whether the product will be available on a specific date. It's nothing more than a request from a customer to the sales team. Create an inquiry sales document in SAP whenever a customer wants information about a product.
Step 1: Open the SAP SD window.
In the SD Master Data Screen, enter transaction code VA11.In the SD Master Data Screen, enter transaction code VA11.
Step 2: Enter the information of an Organization
Step 3: Provide the details of Customer and Material
10000004 has been saved as an inquiry.
A quotation is a sales document that is prepared in response to a customer request after the inquiry document has been created. We can create a quotation based on the inquiry. A quotation is a document in which a vendor offers products or services to a buyer at a specific price and under specified terms.
The price that the company has determined to charge for the service or items that will be provided should be included in the quotation. The information in a quotation document pertains to the delivery of a specified quantity of a product at a specific price on a specific date. It has a validity term, during which the customer could place an order using the quotation. This is a legal document in which a corporation agrees to charge a specific amount to a specific customer for a specific time period, after which the agreement becomes invalid.
On the SD Master Data Screen, enter transaction code VA21.
Step 2: Enter the Organizational Data and Quote Type
Step 3: Type the Inquiry Reference Number
Step 4: Enter the Details of Customer and Product
A 'Sales Order' is a contract between a Customer and a Sales organization for the provision of specific goods and/or services over a set period of time. The sales order receives all required information from the Customer master record and the Material master record. A 'preceding document,' such as an inquiry/quotation, may be used to construct the sales order. IIn this scenario, the sales order receives all of the beginning data from the preceding document. T-code -VA01.
A message appears that reads, "Standard Order 2000958 has been saved."
You use the SAP System to produce and process delivery orders based on information from the customer's pick-upsheets.
Billing is the final stage of the SAP Sales and Distribution module's business transaction execution. Billing information is available at each stage of the order processing process, including when the order is completed and delivered.
The following components make up billing:
Billing is strongly connected to the structure of a business, and it might be assigned to a Sales Organization, a Distribution Channel, or a division.
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For a credit memo, debit memo, invoice, or canceled transaction, a billing document is created. A header and a list of items appear on each billing sheet. The billing type is usually responsible for the billing documents.
In the header of a billing document, general information like as
You should keep the following information in the item list:
You produce, change, and delete billing documents such as invoices, credit memos, debit memos, and so on while performing billing processing.
Billing processing also entails the preparation of billing documents, as shown in the example below.
You can refer to a full document, specific items, or fractions of objects.
The following methods can be used to create a billing document:
Billing Documents Creation
Use T-Code: VF01
Navigate to Logistics → Sales and Distribution → Billing → Billing Document → Create.A new window will open, where you may input the Billing Type, Date, and Document Number to create the document. Save the file.
In this blog, we have successfully learned the implementation steps required for processing the SAP SD flow.
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