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SAP Sales and Distribution (SD)

SAP Sales and Distribution (SD) - SAP Tutorial

From the course: SAP S/4HANA Essential Training

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SAP Sales and Distribution (SD)

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While Materials Management handles the purchasing and inventory side of our materials, Sales and Distribution handles the other end – selling, delivering, and billing for those same products to our customers. In the new SAP terminology, these functions are known as part of the sales line of business. Sales and Distribution is best visualized when broken into the sales cycle. This is often called the order-to-cash process in SAP. First are pre-sales actions, where inquiries come in from customers and sales quotations are created. Next is the actual sales step, where legally binding sales orders or more complex sales arrangements like contracts and scheduling agreements are created. Third is distribution. This is where delivery documents are created and goods are picked from the warehouse, packed appropriately, and then shipped to the customer. Last is billing and returns, where customers are invoiced and if necessary, return orders are created. Let's look at the order-to-cash process…

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