Special Processes and Functions in SAP SD

In SAP Sales and Distribution (SD), there are several special processes
and functions that are crucial for managing sales, distribution, and
related activities within an organization. These processes and functions
cater to various business scenarios and requirements. Here are some of
the key ones:

Intercompany Sales: In scenarios where multiple company codes are

involved, intercompany sales allow for sales transactions between
different legal entities within the same organization.

Third-Party Sales: This process involves selling products directly to

customers without keeping them in stock. Instead, the vendor forwards
the customer's order and shipment details to a third-party supplier, who
then directly ships the goods to the customer.

Consignment Sales: In consignment sales, the seller (consignor) delivers

goods to the customer (consignee) but retains ownership until the goods
are sold. The consignee pays only for the sold items, while the unsold
items remain the property of the consignor.

Credit Management: SAP SD provides credit management functionalities

to control and monitor credit limits for customers. This includes credit
checking during sales order processing to ensure that customers do not
exceed their credit limits.

Availability Check: Before confirming an order, SAP SD performs an

availability check to ensure that the requested products are available in
stock or can be procured in time to fulfill the order.

Output Determination: Output determination is used to determine the

form of communication (e.g., order confirmation, invoice) and the
medium (e.g., print, email) for sending documents to customers or
partners.

Revenue Recognition: SAP SD supports revenue recognition processes,

which are critical for recognizing revenue according to accounting
standards such as IFRS 15 and ASC 606. This ensures that revenue is
recognized at the appropriate time, typically upon delivery of goods or
services.

Returns Processing: SAP SD handles returns processing, allowing

customers to return goods for various reasons such as defects, damages,
or dissatisfaction. Returns are managed through return orders and
subsequent processing steps.

Billing and Invoicing: SAP SD facilitates billing and invoicing processes,

including invoice creation, invoice output, and integration with financial
accounting for posting invoices and managing receivables.

Cross-Company Sales: This process involves selling products from one

company code to another within the same organization. It requires
appropriate configuration and setup to ensure proper accounting and
reporting across company codes.

These are just a few examples of the special processes and functions in
SAP SD. Depending on the specific business requirements, additional
functionalities and customizations may be implemented to support
unique sales and distribution scenarios.