The SAP Sales and Distribution (SD) Process Flow is a schematic representation of the sequence of operations within the SD module, in other words Order to Cash (O2C). This process encapsulates the series of steps from initial customer inquiry to the final step of billing and accounts receivable, showcasing the integral functions of sales order management within SAP.
- Enquiry 🕵️♀️: The cycle starts with a potential customer making an inquiry about products or services.
- Quotation 💰: In response to the enquiry, a formal quotation is created detailing the prices and terms of the sale.
- Sales Order 📑: Once the customer accepts the quotation, a sales order is generated, which is a formal agreement to supply the specified products or services at the agreed-upon terms.
- Picking 🧺: This step involves selecting the specific items from inventory that have been ordered by the customer.
- Packing 📦: After picking, the items are packaged appropriately in preparation for shipment.
- Delivery 🚚: The products are then shipped to the customer, and the delivery document is created in the SAP system.
- Billing 💳: Upon delivery, an invoice is generated for the customer, signaling the request for payment.
- Account Receivable 📬: The final step is updating the accounts receivable, which records the outstanding invoices and tracks the payment due from the customer.
This SAP SD Process Flow is essential for managing the distribution aspects of sales, integrating various logistics and financial components, and is closely tied with other modules such as SAP MM (Materials Management) and SAP PP (Production Planning) for a seamless operation within the SAP environment.
