SAP SD (Sales & Distribution)
The SAP sales module managing customer orders, pricing, shipping and billing.
Detailed definition
SAP SD (Sales & Distribution) is the SAP module that manages sales processes from customer order through shipping and billing, sitting at the center of the Order-to-Cash (O2C) flow. Its scope covers quotations and contracts, sales orders, availability checks (ATP), outbound delivery, shipping and billing. Pricing is handled through a flexible structure called the condition technique; discounts, taxes and freight are calculated through it. SD integrates with MM for stock, PP for production and FI-AR for accounts receivable. Customer master, material master and pricing conditions are its core master data. A well-implemented SD increases order accuracy, shortens delivery times and reduces billing errors, speeding up cash flow. Related terms: O2C, SAP FI/CO, SAP MM, ERP.
Related terms
SAP S/4HANA
SAP's next-generation ERP suite built on the HANA in-memory database, processing finance, logistics, manufacturing and HR data in real time.
SAP FI/CO
SAP's Financial Accounting (FI) and Controlling (CO) modules that together run statutory reporting and management accounting.
SAP MM (Materials Management)
The SAP module that covers procurement, inventory management, vendor evaluation and invoice verification.
SAP PP (Production Planning)
The SAP module for production orders, MRP, capacity planning and BOM management.