Skip to Content
Technical Articles

SAP Sales and Distribution – Sales, Shipping, Billing

In this blog, I am sharing basic overview of SAP Sales and Distribution – Sales, Shipping and Billing. If you like it, I appreciate your rating for this blog post.

Enterprise Structure include:

Sales Organization – An organizational unit that distributes and sells the product.
Distribution Channel – Channel though which material and services reach to customer.
Division – Represent a product line

Internal organizational units from sales organization
Sales Office – Responsible for direct and indirect sales within sales organization.
Sales Group – Group of sales person

Shipping Point – A location or group of employees who process a deliveries
Loading Point – A subdivision of a shipping point for loading and unloading activities.
Transportation planning point – A group of employees who organize transportation activities.

Standard sales order document types include:

Presales – Inquiry, Quotation
Orders – Sales Order, Rush Order, Cash Sales
Contracts – Quantity, Value, Service Contract
Agreements – Scheduling Agreement
Complaints – Credit, Debit Memo request and Return

Details of different sales document types includes:

Inquiry – Customer contact records which capture pre-sales information. It can be for material or text items. Serve as system references for future activity.

Quotation – Can be created with or without reference to inquiries.

Sales Order- An agreement between a sales organization and a sold-to party concerning the delivery of products or provision of services. It includes defined prices, product quantities, and delivery dates.

Rush Order – Rush Order are used when a customer will come to pick up the goods or the order will be delivered on the same day that it was placed. Quantities of materials which cannot be confirmed during the availability check can be handled later through backorder  processing.
When the Rush Order is saved, the system will also create the delivery note automatically.  The delivery note will need to be picked and have goods issue posted. The invoice will be created at a later date. The Rush Order is relevant for delivery related billing. The billing document will be created through standard processing and result in an F2 invoice.

Cash Sales – Cash Sale orders are used in cases when the customer picks up and pays for the goods at the same time that the order is being placed.  Because of this, both the delivery date and billing date are set equal to the current date.
Upon saving the sales order:
1)  A delivery will be created automatically. In standard SA, the items entered will not be relevant for picking, but this can be configured.
2)  A cash sale invoice will be printed.
Through standard processing, a billing document can be created referencing the cash sale document.  In order to create this billing document, the goods issue quantity on the delivery must equal the order quantity.

Contract – Contracts are outline customer agreements that display when sales materials or services are sold within a certain time period. A quantity contract is an agreement that your customer will order a certain quantity of a product from you during a specified period.

Scheduling agreement – Scheduling agreement is an outline agreement between you and a sold-to party that is valid for a certain period of time. The scheduling agreement contains fixed delivery dates and quantities. Standard SAP SD scheduling agreements normally contain: Customer and material information.

Credit memo – Credit memo is a transaction that reduces Amounts Receivable from a customer. Credit memo request is a sales document used in complaints processing for a customer.

Debit memo – Debit memo is a transaction that reduces Amounts Payable to a vendor. Debit memo request is a sales document used in complaints processing for a customer. If the prices calculated for the customer were too low, debit memo request can be created.

Standard delivery document types include:

Delivery with reference to sales order
Delivery without any reference
Return delivery
Replenishment delivery

Standard invoice document types include:

Order related invoice
Delivery related invoice
Credit Memo
Debit Memo

Functions support for sales order processing include:

Credit check
Delivery scheduling and availability check
Pricing and determination of taxes
Transferring of requirements to MRP
Providing documentation, trading papers and order confirmations

Functions support for shipping process include:

Determination of picking location and route
Creating deliveries
Transportation planning
Picking/Packing
Goods issue
Cancellation of the goods issue
Creation of shipping papers

Functions support for billing include:

Creating invoices
Creating debit and credit memos
Transferring posting data to financial accounting
Cancelling business transactions

If you like then request to rate this blog. Thank you!

Be the first to leave a comment
You must be Logged on to comment or reply to a post.