Sales and Distribution (SD)


SAP SD, or Sales and Distribution, is a core component of the SAP ERP suite. It provides a comprehensive set of functionality for managing the sales and distribution process. SAP SD is used by businesses of all sizes in a variety of industries.

Today, we have a competitive scenario that requires organizations to have a robust and efficient sales and distribution process. SAP SD can help you to improve your sales performance, reduce costs, and meet the needs of your customers.

In this post, we shall learn about the SAP SD business process along with sales and distribution flow in SAP. 

Sales and Distribution (SD)

Inclusions of the SAP SD Module

The SAP SD module includes a wide range of functionality for managing the sales and distribution process. Some of the key inclusions are:

Sales and Distribution (SD)

Shipping: The SAP SD module includes a shipping module. This module is significant for managing the shipment of products to customers.

Master data management: The SAP SD module includes an extensive set of master data. This is critical for managing products, customers, and sales representatives. Moreover, it ably oversees other entities pertaining to the sales process.

Billing: The SAP SD module includes a billing module. This module is for generating invoices and tracking payments from customers.

Sales support: The SAP SD module includes a variety of sales support tools, such as order tracking, customer relationship management (CRM), and marketing.

Foreign Trade: This module is critical for firms that operate across the globe. It is associated with managing data related to foreign trade.

The SAP SD module is a powerful and versatile solution for managing the sales and distribution process. It can be used by businesses of all sizes in a variety of industries.

Things To Consider While Implementation of SAP SD

Businesses must be mindful of certain factors before the implementation. Some of the most important factors include:

Business requirements: The first step is to understand the specific company needs. Businesses must know if they will be met by SAP SD. This includes understanding the current sales and distribution process. Apart from this, also consider the goals you hope to achieve by implementing SAP SD.

Technical environment: The step involves assessing the technical environment in which SAP SD will be implemented. This includes understanding the hardware and software requirements. It also includes the network infrastructure.

Data migration: Data migration is required when companies have legacy systems. This data must be migrated to SAP SD. This can be a complex and time-consuming process.

Training: The users of SAP SD will need to be trained to use the system. It should cover all aspects of the sales and distribution process.

Support: The business must have access to support from SAP. This support will be essential in resolving any issues that may arise during the implementation of SAP SD.

Apart from these, there are diverse other things for businesses to consider. These include:

  • cost for implementation
  • time required for implementation
  • impact on the business at the time of implementation
  • benefits of SAP SD for the business

By carefully considering all of these factors, the business can ensure that the implementation of SAP SD is a success.

How BPX Will Help Implement SAP SD?

This section describes how BPX will help organizations implement SAP Sales and Distribution.

As-Is Process: Business Process Expert plays a crucial role in implementing SAP SD. They accomplish the task by analyzing the current “As-Is” processes of the organization. Further, they collaborate with business stakeholders and gather requirements. An important aspect they cover is of documenting existing sales and distribution processes. This analysis provides a clear understanding of the organization’s current state, identifying pain points, and areas for improvement.

Business Blueprint (Gap-Fit & To-be)/ SAP functional specification document: Based on the As-Is process analysis, BPX works closely with business users to define the “To-Be” processes. This must be aligned with SAP SD capabilities. They document the business requirements and functional specifications. Finally, they design the SAP solution blueprint. This includes identifying any gaps between the As-Is and To-Be processes. Additionally, they propose necessary modifications or customizations to meet the organization’s specific needs.

Master Data Migration/ Item Master Configuration: BPX strives to ensure a smooth transition of master data to the SAP SD system. They achieve this by collaborating with data migration experts. Apart from this, they assist in cleansing and mapping existing data and defining data conversion rules. Validating data integrity is another significant aspect BPX oversees.

System Configuration / Realization (as per To-Be) along with customization: BPX actively participates in the system configuration phase. This is done by working closely with technical teams and SAP consultants. This collaboration paves the way for implementing the designed To-Be processes in the SAP SD system. They collaborate on configuring various SD modules. BPX may also contribute to customizing the system through enhancements or modifications to meet specific business requirements.

UAT: BPX plays a crucial role in User Acceptance Testing (UAT). They collaborate with business users to develop test scenarios and test scripts. BPX ensures that the system meets user expectations and identifies any issues or discrepancies. UAT phase also involves working with the technical team to resolve them before the next phase.

Go-Live Preparation: During the Go-Live preparation phase, BPX assists in data validation, end-user training, and the creation of necessary documentation. They assist in preparing user manuals and process guides. Working closely with the project team, they ensure a smooth transition from the testing to the production environment. BPX also helps in finalizing cutover plans and ensuring readiness for system-wide implementation.

Go-Live: BPX actively participates during the Go-Live phase. They support end-users and address any issues or challenges that arise during the system’s initial implementation. They also synchronize closely with the project team and stakeholders to monitor system performance. The expert team of BPX provides immediate support for any critical issues encountered.


After Go-Live Support: Following the successful Go-Live, BPX provides post-implementation support to end-users and stakeholders. At this stage, they address any questions and provide additional training if needed. and help users adapt to the new SAP SD system. BPX also collaborates with the support team to manage ongoing system enhancements. With continuous improvement initiatives, the team ascertains that the system aligns with evolving business requirements.


Lets look at some of the frequently asked questions regarding the SAP SD module:

SAP SD, or Sales and Distribution, is a core module in the SAP ERP suite. It provides a comprehensive set of functionality for managing the sales and distribution process. It takes care of operations starting from lead generation to order fulfilment. SAP SD is used by businesses of all sizes in a variety of industries.

Here are the main functions of SAP SD:

  • Master data management
  • Pricing
  • Availability check 
  • Credit management
  • Shipping and billing
  • Sales support

SAP SD helps businesses to improve their sales performance, reduce costs, and meet the needs of their customers.

In the SAP SD module, there are several functional modules that work together. They contribute to supporting various sales and distribution processes within an organization. The main functional modules within SAP SD are as follows:

  • Sales order processing
  • Pricing and conditions
  • Delivery processing
  • Credit management
  • Transportation and shipment
  • Sales information system
  • Foreign trade and export
  • Sales support

The main process in SAP SD (Sales and Distribution) revolves around the end-to-end management of sales and distribution operations within an organization. The SAP SD process flow typically includes the following key steps:

  • Generating sales quote: SD raises a sales quote.
  • Order placement: Following the sales quote, the customer places an order.
  • Goods picked up and shipped: In this next step, the goods get picked up from the warehouse. They are then shipped to the concerned customer.
  • Raising and sending invoices: The module then facilitates sending the invoice to the customer.

Accounts receivable feature of the SAP SD module settles the payment.

The item category is a key component that classifies the behavior of items within sales documents. It helps to define the characteristics and processing rules for each item in a sales order. The item category controls various aspects. These include the following:

  • Pricing
  • availability check
  • delivery
  • billing
  • text determination for a particular item.

Let’s Talk!