SAP Sales & Distribution

SAP SD Overview
Scope
 Sales Quotation
Key process :

• Receiving a RFQ from the customer.

• Create a Quotation.
• Share the Quotation with the customer.
• Customer accepts the quotation terms.
• Create a sales order with ref to quotation.
• Create delivery.
• Create Invoice.
• Incoming payment.

Benefits :

• With this business process you can assure your business partners that you will
deliver a certain product configuration and quantity at a specific time and price.
• During sales order processing, the sales employee can make use of a variety of sales
functions and special quotation functions.
Scope
 Sale Order Processing : Sale From Stock
Key process :

• Create a sales order.

• Order Confirmation.
• Delivery.
• Quality inspection(Optional)
• Picking
• Goods issue.
• Billing.
• Posting billing to accounting.
• Incoming payment.

Benefits :

• When an order is entered, an availability check is performed and a shipping point is

determined automatically.
• A billing document is created and postings to FI and CO are made.
Scope
 Free Of Charge Delivery
Key process :

• Create a sales order with order type for free of charge deliveries.
• Order is confirmed based on the availability of goods.
• Create Delivery.
• Picking.
• Goods issue.
• Non relevant for Billing.

Benefits :

• System integrated Free of Charge sales order processing .

Scope
 Credit Memo Processing
Key process :

• Create a credit memo request with reference to sales order or billing document.
• Credit memo request would contain a billing block.
• Approve the credit memo request (review credit memo request).
• Remove the billing block .
• Create a credit memo(Billing).
• Release the credit memo to accounting.

Benefits :

• System integrated credit memo processing

• More effective cash management.
• More efficiently handling issues like; overcharges, incomplete shipments, wrong items
shipped and goods rejected or returned.
• Eliminate data entry into your system
Scope
 Debit Memo Processing
Key process :

• Create a Debit memo request with reference to sales order or billing document.
• Debit memo request would contain a billing block.
• Approve the debit memo request (review debit memo request).
• Remove the billing block.
• Create a debit memo(Billing).
• Release the debit memo to accounting.

Benefits :

• System integrated debit memo processing

• More efficiently handling issues like; underbilling.
• Eliminate manual data entry into your system.
Scope
 Returns and Complaints
Key process :

• Create a returns sales order with or without ref to a preceding document (Sales order
or Billing document).
• Create the return delivery and post goods receipt.
• Quality Inspection
• Create a billing (credit memo) document
• Release the credit memo to accounting.

Benefits :

• Register the receipt of goods using a returns delivery, and post the goods to stock(for
example , blocked stock)
• Create a credit memo , once you have checked the goods and approved the
complaint.
Scope
 Sales Process Using Third Party (W.Shipping Notification)
Key process :
• PO from customer
• Creation of Third party sales order .
• Purchase requisitions will be created in the back end .
• Convert purchase requisitions to purchase order.
• Approval of purchase orders.
• Purchase order sent to supplier.
• Goods dispatched directly from supplier to customer.
• Post stastical goods receipt.
• Invoice verification.
• Creation of billing document with ref to sales order.

Benefits :

• Reducing stock & cost ,increasing efficiency.

• Handover of customer’s requirements directly to external supplier.
• Fulfilment of customer’s requirements despite material shortage.
Scope
 Sales Process Using Third Party (Without.Shipping
Notification)

Key process :
• PO from customer.
• Creation of Third party sales order .
• Purchase requisitions will be created in the back end .
• Convert purchase requisitions to purchase order.
• Approval of purchase orders.
• Purchase order sent to supplier.
• Goods dispatched directly from supplier to customer.
• Invoice verification.
• Creation of billing document with ref to sales order.

Benefits :

• Reducing stock & cost ,increasing efficiency.

• Handover of customer’s requirements directly to external supplier.
• Fulfilment of customer’s requirements despite material shortage.
Scope
 Customer Consignment Processing

Key process :
• Consignment fillup (send materials to customer consignment).
• Consignment issue (issue materials from customer consignment to the customer).
• Consignment return (return materials from customer ownership to customer
consignment).
• Consignment pickup (pickup consignment stock and move it to plant stock).
• Pick and ship.
• Billing.

Benefits :

• Consignment stock managed separately for each customer.

• Consignment stock managed separately from the rest of your stock as special stock.
• Reports to track the consignment stock.
Scope
 Sales Order Processing for Prospect

Key process :
• New customer places the order.
• Create a sales order w/o having the customer account number.
• Create customer master record.
• Assign the newly created customer to the sales order.
• Perform the availability check and confirm the order.
• Create delivery.
• Quality inspection (Optional).
• Pick and ship.
• Post goods issue.
• Billing.
• Posting the document to accounting.

Benefits :

• Sales order processing without the customer’s account number.

• Sales order entry with material determination.
Scope
 Sales Order Processing with Customer Down Payment
Key process :
• Received the PO from Customer.
• Create a sales order with billing plan.
• Billing block should be removed by the authorized person in the sales order.
• Create a billing document (Down payment request).
• Down payment is posted to finance.
• Create delivery with reference to sales order.
• Quality inspection (Optional).
• Pick and ship.
• Check batch determination.
• Post goods issue.
• Billing (With ref to order).
• The settlement of the down payment with the final invoice should have been done
automatically.

Benefits :
• Down payments form part of the agreement with the customer and are saved in the
sales order.
• A down payment request is sent to the customer in time for the deadline. The request
can be generated by the system from the billing due list, or you can enter it manually.
The down payment request is automatically posted as such to Financial Accounting.
• When you post an incoming down payment, the system proposes and assigns the
available down payment requests.
• In partial invoices and for the final invoice, the down payments that have been made
are copied to the billing document as down payments for clearing.
Scope
 Rebate Processing : Free Goods
Key process :
• Create sales order.
• Availability check & order confirmation.
• Creation of delivery.
• Picking.
• Quality inspection (optional)
• Goods issue.
• Billing

Benefits :

• When an order is entered, an availability check is performed and a shipping point is

determined automatically.
• Inclusive free goods are determined automatically.
• A billing document is created and postings to FI and CO are made.
Scope
 Sales Order Processing With Collective Billing
Key process :
• Create sales orders.
• Collective run for deliveries.
• Picking.
• Quality inspection (optional)
• Goods issue.
• Collective run for billing

Benefits :

• Cost optimization in collecting customer orders due to deliver to the same customer in
one delivery via a collective run.
• Cost optimization in collecting deliveries to the same customer for one invoice via a
collective run.
Scope
 Sales Of Non –Stock Item with Order Specific
Key process :
• Customer requests for the material
• Create sales orders.
• Convert purchase requisitions to purchase order.
• Approval of purchase orders.
• Post goods receipt.
• Invoice verification.
• Delivery processing and goods issue.
• Billing.

Benefits :

• Handover of customer’s requirements directly to external supplier

• Material is sent from external supplier to trader. The trader stays in charge for the
complete delivery process.
• Fulfillment of customer’s requirements despite of material shortage.
Scope
 Returnables Processing
Key process :

Dispatching the goods with returnable packing

• Sales order entry
• Delivery due list.
• Add returnable packaging to deliveries.
• Picking.
• Post goods issue.
• Billing
• Incoming payments

Creating the returns order for returnable packing

• Create a returns order.
• Create delivery and PGI (unreturned pallets)
• Creating debit memo request for unreturned pallets
• Release debit memo request for billing.
• Billing
• Posting unreturned pallets

Benefits :
• The process comprises the management of returnables using the ERP returnable
packaging logistics functions.
• Tracking of returnables.
Scope
 Credit Management
Key process :

• Sales order entry.

• Check credit limit.
• Block sales order.
• Release sales order.
• Delivery.
• Post goods issue.
• Billing.
• Incoming payments.

Benefits :
• Reduce risk of bad debt.
• Focus on reliable and profitable customers.
• Faster credit-worthiness check.
• Fasten the process of checking a customer credit limit.
• Identify the overall credit risk of your company.
Scope
 Foreign Trade Export Processing
Key process :

• Sales order entry.

• Delivery creation.
• Check foreign trade information.
• Picking.
• Create pro-forma billing.
• Print custom documents.
• Post goods issue.
• Billing.

Benefits :
• Sales order management.
• Fulfill complex documentation requirements.
• Drive Process efficiently.
Scope
 Sales : Period End Closing Operations
Key process :

• Review blocked sales orders.

• Review incomplete sales orders.
• Review sales documents blocked for delivery.
• Review sales documents due for delivery.
• Review log of collective delivery creation.
• Review incomplete SD documents (Deliveries)
• Review outbound deliveries for goods issue
• Review sales document blocked for billing
• Review billing due list
• Review list blocked (for accounting) billing documents.

Benefits :
• Provides a SD periodic activities overview.
List of Data / Forms required

 List of data and forms required as attached in the

document below –

Data & Forms

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