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Step-by-step tutorial for common SAP SD processes

Updated: Jun 27

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SAP sales and distribution (SD) is a crucial module in SAP ERP Central Component (ECC) that manages customer relationships from raising a citation to sales order and billing of the products or services. Understanding SAP SD procedures is vital for everyone intending to have a profession in SAP SD. This blog presents a manual with the aid-of-step to some commonplace SAP SD strategies, providing a glimpse into the module's functionality and assisting you in gaining self-assurance in choosing SD as a career course.

Introduction to SAP SD

SAP SD is designed to control an organization's income and distribution tactics. It integrates with other SAP modules like MM (Material Management), PP (Production Planning), and FICO (Financial Accounting and Controlling) to make certain seamless records float and efficient commercial enterprise operations. Key components of SAP SD encompass:

  • Master Data

  • Sales Support

  • Sales

  • Shipping & Transportation

  • Billing

  • Credit Management

  • Foreign Trade

Understanding these components is crucial for executing various business processes efficiently.

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Sales Order Processing

Sales order processing is the backbone of the SD module. It involves growing and coping with sales orders, which are facts of a sale made to a patron.

Step-by-Step Process

  1. Create a Sales Order:

  • Enter Order Type (e.g., OR for standard order)

  • Enter Sales Area (Sales Organization, Distribution Channel, Division)

  • Enter the customer and material details

  • Verify pricing, taxes, and other conditions

  • Save the sales order

  1. Check Availability:

  • Use the ATP (Available to Promise) functionality to check if the products are available

  • Confirm delivery dates based on product availability

  1. Sales Order Monitoring

Delivery Processing

Once the income order is confirmed, the subsequent step is to ship the products.

Step-by-Step Process

  1. Create Delivery Document:

  • Enter the Shipping Point and Selection Date

  • Select the sales order for which delivery needs to be created

  • Confirm the items to be delivered

  1. Picking and Packing:

  • Confirm the picking quantity

  • Pack the items if necessary

  1. Post Goods Issue:

  • Post the goods issue to update inventory and accounting

Billing Processing

Billing is the last step of the sales order processing cycle, where an invoice is generated for the goods brought.

Step-by-Step Process

  1. Create Billing Document:

  • Enter Billing Type (e.g., F2 for invoice)

  • Enter the delivery document number

  • Verify pricing and taxes

  • Save the billing document

  1. Print or Send Invoice:

  • Print or email the invoice to the customer

  1. Billing Document Monitoring

Credit Management

Credit control guarantees that income is made within the credit limits set for clients to manage financial threats.

Step-by-Step Process

  1. Define Credit Control Area:

  • Define credit control areas and assign them to company codes

  1. Create Credit Master Data:

  • Enter customer and credit control area details

  • Define credit limits and risk categories

  1. Credit Check:

  • Integrated within sales order processing

  • Ensures orders are within the customer's credit limit before processing

Returns Processing

Handling returns effectively is essential for inventory control.

Step-by-Step Process

  1. Create Return Order:

  • Select Order Type (e.g., RE for returns)

  • Enter the original sales order reference

  • Enter return material and quantity

  1. Create Return Delivery:

  • Create a delivery document for the return

  1. Post Goods Receipt for Returns:

  • Post the receipt of the goods to update the inventory

  1. Create Credit Memo:

  • Create a credit memo to refund the customer


SAP SD is a complete module that covers a huge range of income and distribution strategies. This step-by-step academic gives a basic knowledge of commonplace tactics consisting of income order processing, shipping processing, billing, credit score control, and returns processing. By getting to know those processes, you may build a sturdy basis in SAP SD, making you a precious asset to any organization and starting up several professional opportunities.

A career in SAP SD can be profitable, providing a route to becoming a proficient SAP representative or an essential part of a company's sales and distribution operations. With dedication and non-stop learning, you may excel in this field and contribute substantially to the fulfillment of your organization.

Learn the eligibility, syllabus, fee, etc of our SAP SD consultant program.

To know more contact us at  +91 8137977796

The future of your career begins right here!

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