SAP SD Process Flow

SAP Sales and Distribution is a crucial component of the SAP ERP system that manages the shipping, billing, selling, and transportation of products and services inside a business. In this blog, we are going to discuss theSAP SD processing flow steps in detail.

The SAP SD process flow steps are as follows:

Steps of SAP SD Flow:

1) Sales Inquiry

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.

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SAP INQUIRY Creation

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

  • Type IN for the Inquiry type.
  • Enter Sales organization, Distribution channel, and Division.
  • Click on Sales.
  • The sales organization in our example is 1000, the distribution channel is 10, and the division is 00. 


Step 3: Provide the details of Customer and Material 

  • Enter the sold-to-party and ship-to-party addresses for the inquiry.
  • Enter the material number that the customer has inquired about.
  • In our instance, customer 1000 is looking for a material R-1140 with a quantity of 10.

  • After the data is entered click the Save button.
  • The following message would appear on the screen.

10000004 has been saved as an inquiry. 

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2) Quotation

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.

SAP QUOTATION Creation 


Step 1: Launch the SAP SD screen

On the SD Master Data Screen, enter transaction code VA21.


Step 2: Enter the Organizational Data and Quote Type

  • Enter QT as the type of quotation.
  • Enter Sales organization, Distribution channel, and Division.
  • Click on Create with reference.
  • The sales organization in our example is 1000, the distribution channel is 10, and the division is 00. 


Step 3: Type the Inquiry Reference Number

  • Enter the number of the inquiry for which you'd want a quote.
  • Click on Copy.
  • In this example, we'll make a quotation for the number 10000004. 


Step 4: Enter the Details of  Customer and Product 

  • Enter the sold-to-party, ship-to-party, and PO number for the quotation.
  • Enter the validity period, which is the amount of time the quotation is valid for.
  • Enter the material and quantities that a business offers to a client.
    Click on Save.
  • In our instance, customer 1000 is looking for a material R-1140 with a quantity of 10. 

  • After you've entered all of your data, click the Save button.
  • It displays the following message.
  • The Quotation 20000066 has been saved.

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3) Sales order

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.

Step 1:

  • In the command field, type T-code VA01.
  • Enter order type OR for Standard order.
  • In the Organizational Data block, enter the sales organization/ distribution channel/ division.
  • To create a sales order from an inquiry or quotation, click the Create with Reference button. 

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Step 2:

  • In the quotation tab, type the number of the quotation.
  • Select the copy button. 
     


Step 3:

  • Type Ship-To-Party / PO number / PO date.
  • Enter Req. delivery date.
  • We can change the order quantity.
  • Click on the save button. 


Step 4:

A message appears that reads, "Standard Order 2000958 has been saved."

4) Delivery/Shipping

You use the SAP System to produce and process delivery orders based on information from the customer's pick-upsheets.


Process Flow

  • You and the customer already have an outline agreement, in this case, a particular scheduling agreement for delivery order processing.
  • The customer prepares data for delivery and sends it to you on a pick-up sheet based on this scheduling arrangement (and the forwarding agent).
  • The inbound pick-up sheet is received by an Electronic Data Interchange (EDI) subsystem, which converts it to an intermediate document (IDoc), which is subsequently saved in your SAP system.
  • The inbound pick-up sheet is received by an Electronic Data Interchange (EDI) subsystem, which converts it to an intermediate document (IDoc) that is subsequently saved in your SAP system. The system uses this information to determine the corresponding scheduling agreement and generates schedule lines in the delivery order that meet the customer's needs. The delivery order is handled similarly to a typical order.
  • To prepare the things for pick-up, you create a regular delivery. For each unloading point, delivery is created.
  • The supplies are picked up by the customer's forwarding agent on time.
  • The invoice for the delivery has been generated. To pay, the consumer refers to the billing document's pick-up sheet number. 

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5) Billing/Invoice

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:

  • Return goods credit and debit memos.
  • Create invoices for deliveries and services.
  • Cancellation of Billing transactions.
  • Functions of Pricing
  • Discount and Rebates.
  • Transferring billing data to Financial Accounting FI. 

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.

Key functions in Billing
  • Billing Types.
  • Match codes.
  • Number Range.
  • Blocking Reasons.
  • Display billing list.
  • Display billing duelist. 

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Document Types for Billing

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

  • Date of Billing
  • Payer identification number
  • Billing value
  • Currency
  • Partner Identification numbers like ship-to-party, sold-to-party, etc.
  • Pricing Elements 

You should keep the following information in the item list:

  • Material Number
  • Quantity of goods
  • Volume and weight
  • Value of Individual items
  • Pricing element for individual items

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.

  • To a sales order
  • To a delivery
  • To external transactions

You can refer to a full document, specific items, or fractions of objects.

The following methods can be used to create a billing document:

  • When a system runs a background operation to process a billing duelist.
  • Using a worklist to manually process.
  • A billing document could also be created explicitly. 

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.

  • VF02 − To change the Billing Document
  • VF03 − Display Billing Document
  • VF11 − Cancel a Billing Document
  • VF05 − List Billing Document 

Conclusion:

In this blog, we have successfully learned the implementation steps required for processing the SAP SD flow. 

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Kavya Gowda
Kavya Gowda
Research Analyst
Kavya works for HKR Trainings institute as a technical writer with diverse experience in many kinds of technology-related content development. She holds a graduate education in the Computer science and Engineering stream. She has cultivated strong technical skills from reading tech blogs and also doing a lot of research related to content. She manages to write great content in many fields like Programming & Frameworks, Enterprise Integration, Web Development, SAP, and Business Process Management (BPM). Connect her on LinkedIn and Twitter.