Sales Distribution module (SD) in SAP ERP Solutions

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Sales Distribution module (SD) in ERP SAP Solutions consising of Order to cash process and Main functions such as Pre-costing, sales,Inventory and delivery…

Pre-costing:

With MTO model, the costing needs to carry out accurate and quick response to customer queries. The pre order costing module, based on the standard cost of various input item ( Raw material, labour , OH) generate an estimate for the sales department to quote the price .

Inventory and credit limit

A basic function in SD module is checking availability of stock and customer credit limit. This will reduce risk in sales and ensuring delivery on time.

Price list and sales policy

SAP provides pricing policy for various levels in organisation structure. Based on the various factors, the company may have multiple pricing policies. These pricing policies of the company can be inbuilt into the system. While selling products, these pricing policies can be recalled to have arrived at a selling price.

The sales professionals can handle credit checks, on hand quantities, invoices, and process payments themselves and view all billing information for their customers. SAP supports a wide range of process variants, such as make to order, ship to order, engineer to order, batch processing, returns, and many more.

Order to cash process ERP SAP

Sales Order

The sales professionals can handle credit checks, on hand quantities, invoices, and process payments themselves and view all billing information for their customers. SAP supports a wide range of process variants, such as make to order, ship to order, batch processing, returns, and many more.

When creating a sales order, you can carry out an availability check to determine whether the desired models / articles / colours or sizes are in stock. This also checks whether the stock is sufficient to fill the order by the desired delivery date. A confirmed delivery date is determined based on the results of the availability check.

Inventory and delivery:

It monitors good issue and batch tracking when carrying out the stocking process and subsequently to delivery the information of this process will be transferred to AR automatically.

Production control:

Production control provides for sales department to follow completing production order progress such as: scheduling status, materials status, finishing progress and so on. It also makes save production cost, transportation cost, delivery on time and fix-error cost.

Comments

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  1. Theory of constraints and Activity based Costing are inherently different as they focus on different time frames.

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