1.

Organisation structure in Sales & Distribution – company code, sales organisation, distribution
channel, division.

2. Distribution channel – it is a media through which we make a finished goods to reach to

consumer.

3. Division – it is nothing but a product.

4. Sales area – it is the each combination of sales organisation, distribution channel, division.

5. Business process in SD also called O 2 C (order to cash) – it’s means how the sales are initiated.
First the sales department will receive inquiry from customer, if goods required by customer are
available with us, then he will ask us send quotation. So we send the quotation. Quotation created
with reference of inquiry. Then the quotation is acceptable by the customer, the customer give the
order that is called sales order. Then deliver the goods. When delivery goods acceptable by customer
then we raise the invoice that is called billing.

5. Installation of stock/ transfer of goods from plant to FG stock a/c (MM automatic posting in FI).

Entry – FG stock a/c Dr, To COGS a/c.

Delivery of goods – COGS a/c Dr, To FG stock a/c.

Billing – Customer a/c Dr, To sales a/c

Payment received – Bank a/c Dr, To customer a/c.

6. Delivery of goods without post goods issue in SD – it is also called delivery of goods without PGI.
And delivery of goods when the sales account is not revenue account (which is credited). This type of
delivery takes place when the transfer of the goods takes place between the two organisations units
of the same company code. In this case there is no transfer of ownership. So only MM document is
posted.

7. Delivery of goods with post goods issue in SD – it is also called delivery of goods with PGI &
delivery of goods when the sales account is revenue account. This type of delivery takes place when
the goods are transfer from our organisation unit to the customer. In this case the ownership of the
goods is transferred to customer & one MM document & one FI document s posted.

8. Shipping point – from ware house where goods are despatched to the customer.

9. Loading point – each warehouse is divided many part, each part is called loading point. A specific
place of warehouse where goods are loading.

10. Partner function contains – sold to party (customer who has gives the sales order), ship to
party(to whom despatch the goods, bill to party(to whom sent the invoice),payer(customer who
makes payment).

11. Assignment of GL account integration of FI with SD – combination of customer group, material

group & account key. Here we assign application, condition type, COA, sale organisation, account
assignment group for customer, account assignment group for material, accounts key (ERL –
revenue).