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    Special Processes and Functions in SAP SD

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    tosik33721
    SAP Sales and Distribution (SD) contains several special processes and functions to manage various sales and distribution activities. These include intercompany sales to allow transactions between legal entities, third-party sales where a vendor forwards customer orders to a supplier, and consignment sales where the seller retains ownership until goods are sold. Additional key processes are credit management, availability checks, output determination, revenue recognition, returns processing, billing, invoicing, and cross-company sales between organizational units. SAP SD caters to different business requirements through these specialized processes and functions.

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    Special Processes and Functions in SAP SD

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    tosik33721
    45 views2 pages
    SAP Sales and Distribution (SD) contains several special processes and functions to manage various sales and distribution activities. These include intercompany sales to allow transactions between legal entities, third-party sales where a vendor forwards customer orders to a supplier, and consignment sales where the seller retains ownership until goods are sold. Additional key processes are credit management, availability checks, output determination, revenue recognition, returns processing, billing, invoicing, and cross-company sales between organizational units. SAP SD caters to different business requirements through these specialized processes and functions.

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    SAP Sales and Distribution (SD) contains several special processes and functions to manage various sales and distribution activities. These include intercompany sales to allow transactions between legal entities, third-party sales where a vendor forwards customer orders to a supplier, and consignment sales where the seller retains ownership until goods are sold. Additional key processes are credit management, availability checks, output determination, revenue recognition, returns processing, billing, invoicing, and cross-company sales between organizational units. SAP SD caters to different business requirements through these specialized processes and functions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views2 pages

    Special Processes and Functions in SAP SD

    Uploaded by

    tosik33721
    SAP Sales and Distribution (SD) contains several special processes and functions to manage various sales and distribution activities. These include intercompany sales to allow transactions between legal entities, third-party sales where a vendor forwards customer orders to a supplier, and consignment sales where the seller retains ownership until goods are sold. Additional key processes are credit management, availability checks, output determination, revenue recognition, returns processing, billing, invoicing, and cross-company sales between organizational units. SAP SD caters to different business requirements through these specialized processes and functions.

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    Special Processes and Functions in SAP SD

    In SAP Sales and Distribution (SD), there are several special processes
    and functions that are crucial for managing sales, distribution, and
    related activities within an organization. These processes and functions
    cater to various business scenarios and requirements. Here are some of
    the key ones:

    Intercompany Sales: In scenarios where multiple company codes are


    involved, intercompany sales allow for sales transactions between
    different legal entities within the same organization.

    Third-Party Sales: This process involves selling products directly to


    customers without keeping them in stock. Instead, the vendor forwards
    the customer's order and shipment details to a third-party supplier, who
    then directly ships the goods to the customer.

    Consignment Sales: In consignment sales, the seller (consignor) delivers


    goods to the customer (consignee) but retains ownership until the goods
    are sold. The consignee pays only for the sold items, while the unsold
    items remain the property of the consignor.

    Credit Management: SAP SD provides credit management functionalities


    to control and monitor credit limits for customers. This includes credit
    checking during sales order processing to ensure that customers do not
    exceed their credit limits.

    Availability Check: Before confirming an order, SAP SD performs an


    availability check to ensure that the requested products are available in
    stock or can be procured in time to fulfill the order.

    Output Determination: Output determination is used to determine the


    form of communication (e.g., order confirmation, invoice) and the
    medium (e.g., print, email) for sending documents to customers or
    partners.

    Revenue Recognition: SAP SD supports revenue recognition processes,


    which are critical for recognizing revenue according to accounting
    standards such as IFRS 15 and ASC 606. This ensures that revenue is
    recognized at the appropriate time, typically upon delivery of goods or
    services.

    Returns Processing: SAP SD handles returns processing, allowing


    customers to return goods for various reasons such as defects, damages,
    or dissatisfaction. Returns are managed through return orders and
    subsequent processing steps.

    Billing and Invoicing: SAP SD facilitates billing and invoicing processes,


    including invoice creation, invoice output, and integration with financial
    accounting for posting invoices and managing receivables.

    Cross-Company Sales: This process involves selling products from one


    company code to another within the same organization. It requires
    appropriate configuration and setup to ensure proper accounting and
    reporting across company codes.

    These are just a few examples of the special processes and functions in
    SAP SD. Depending on the specific business requirements, additional
    functionalities and customizations may be implemented to support
    unique sales and distribution scenarios.

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