SAP Sales and Distribution (SD) is one of the most popularly used modules that is imparted in SAP SD Certification program towards better data and work management in enterprises. SAP (System Application and Products) was initiated by SAP AG originated in Germany. It has come a long way adopting various modules for different processes in an organization. Today, SAP has been adopted by host of companies from across the globe to enhance the process works in various departments.


The SAP SD module is one of the primary ERP module developed by SAP. SAP service and distribution deals in better management of sales and customer distribution data and processes in organizations.SAP service and distribution deals in better management of sales and customer distribution data and processes in organizations. It works closely with other SAP modules towards effective process work. Other modules that SAP SD integrates are financial accounting (FI), controlling (CO), materials management (MM), and production planning (PP) and so on.SAP SD configuration requires adequate knowledge on handling SAP developed software products. It is widely advised by experts to undertake SAP SD training in order to build a strong base on SAP SD user.

SAP SD module has multiple components that integrate different processes within the job area.

Components of SAP SD MODULE

-SAP-SD-MD: Master Data

-SAP-SD-BF: Basic Functions

-SAP-SD-SLS: Sales

-SAP-SD-SHP: Shipping

-SAP-SD-TBA: Transportation

-SAP-SD-FTT: Foreign Trade

-SAP-SD-BIL: Billing

-SAP-SD-CAS: Sales Support

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SAP-SD-MD (Master Data): 

Master data is very important for all SAP modules. Theses are data records that remains in the database for a long period of time. And also has an organizational aspect as it is assigned to organizational units.

The sales and distribution master data includes data of customer master data, material master data, pricing conditions record, output records and credit management. From order to cash process, entire flow is being recorded in this module.

SAP-SD-BF: (Basic Functions):

SAP SD configuration results effective process across all basic functions involved in sales and distribution area.Here, examples of basic functions can be pricing, output etc.

The basic functions in SD


Availability Check

Credit Management

Material Determination

Output Determination

Text Processing

Tax Determination

Account Determination

SAP-SD-SLS (Sales):

Sales allows you to execute different business transactions based on sales documents defined in the system. Deliveries and billing documents can be created and processed from the sales document.

Four groups of sales documents are differentiated

 -Customer inquiries and quotations

-Sales orders

-Outline agreements, such as contracts and scheduling agreements

-Complaints, such as free of charge deliveries, credit and debit memo requests and returns.

SAP-SD-SHP: (Shipping):

Shipping is defined as a very important activity in the sales process. It comes under the logistics chain and guarantees customer service and distribution of goods. It is a significant component of Sales and Distribution module.It is used to perform outbound delivery and other shipping activities like picking and packing of the goods.

In the shipping process, there are a few key sub processes, which include −

-Delivery processing of the goods

-Picking of items

-Packing of the goods

-Post goods issue

-Shipping communication

-Planning & monitoring of shipping

-Other functions like batch determination, serial numbers, inspection, etc.

The shipping point key characteristics include −

-It is under client location.

-An Outbound Delivery is processed from a single Shipping point.

-Shipping point is determined at Item level in the order.

-Shipping point can process outbound deliveries of several plants.

SAP-SD-TBA: (Transportation)

This SAP SD Transportation component works closely with the above shipping module. A product can be either couriered or manually delivered. The mode of transportation is different for each one and is being tracked through this module.

SAP-SD-FTT: (Foreign Trade)

Data that describes the export or dispatch characteristics of a sales and distribution (SD) transaction.This component helps a department to handle the data related to foreign trade including both imported products and products exported outside. This module works best for enterprises involved with trade across nations.

SAP's Foreign Trade/Customs application (FT) is

-Cost effective

-Easy to use

-Integrated with the total SAP system

 -Automatically identify licensing requirements for importing and exporting goods based on current regulations

-Simplify reporting with automatic procedures for creating, printing and submitting declarations

-Determine which of your products qualify for preference handling

-Provide an active interface for sending or retrieving data via internationally available EDI systems and other electronic media

 -Update or change data in all relevant foreign trade documents at any time prior to the final goods issue. Even after you have posted the goods issue, you can still change data in the invoice.

Learn more about SAP SD Interview Questions in this blog post.

SAP-SD-BIL: (Billing)

Controls processing of billing documents such as invoices, credit and debit memos as well as cancellation documents.This component is responsible for creating the invoices or credit / debit memos based on the goods deliveries.

Billing document type controls the entire billing document.

You can use billing document types to deal with the different business transactions carried out during billing processing.

The different billing document types available are listed in the following table:

Billing Document TypeName
F1Delivery-related invoice
F2Delivery-related invoice
F5Pro forma invoice for sales order
F8Pro forma invoice for delivery

Billing - POS system

CRCredit memo
L2Debit memo
RECredit memo for returns
S1Cancellation invoice
S2Cancellation credit memo

Specific functions can be defined for each billing document type. This is done using control elements that are specified in tables.

The billing document type controls the following elements:

-The number range for the document number

-The billing type that can be used to cancel the billing document

-The transfer status of the billing document:

-Transferred to financial accounting

-Blocked from transfer

-Not transferred

-The procedure for account assignment in Financial Accounting

-The allowed output for a business transaction and the procedure for output

-The partner functions allowed at header level

-The partner functions allowed at item level.

SAP-SD-CAS: Sales Support

The data exchanged between the sales team and customers while delivering support for a product is recorded and reported through this module.From selling a product to maintaining it for a process, customers constantly interact with the sales team.

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