Introduction to SD Configuration in SAP
Setting up SD (Sales and Distribution) configuration in SAP’s Enterprise Structure is a foundational step in implementing the SAP Sales and Distribution module. This configuration ensures seamless integration of various sales processes such as order processing, shipping, billing, and customer service.Understanding the SAP Enterprise Structure
Role of Enterprise Structure in SAP SD
Enterprise Structure in SAP defines the physical and logical organizational units. In the SD module, this includes Sales Organizations, Distribution Channels, Divisions, Plants, and Shipping Points. These units are pivotal in ensuring that the flow of goods and services is well-structured and traceable.Key Organizational Units in SAP SD
| Unit | Purpose |
|---|---|
| Sales Organization | Responsible for product/service sales |
| Distribution Channel | Route to reach the customer |
| Division | Product or service grouping |
| Plant | Production/storage location (MM linked) |
| Shipping Point | Handles the shipping process |
Configuration Steps in SD Enterprise Structure
Define Sales Organization
Purpose of Sales Organization
The Sales Organization represents the selling unit of a company. It is the highest level in SD responsible for distributing goods and services.Path in IMG for Defining Sales Org
IMG → Enterprise Structure → Definition → Sales and Distribution → Define, copy, delete, check Sales OrganizationAssign Sales Organization to Company Code
Importance of This Assignment
Mapping the Sales Organization to a Company Code ensures that all financial transactions related to sales are captured accurately under the correct legal entity.Configuration Path in SPRO
IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Sales Organization to Company CodeDefine Distribution Channel
Meaning and Role
A Distribution Channel defines how a product or service reaches the end customer (e.g., online, retail, wholesale).IMG Navigation Path
IMG → Enterprise Structure → Definition → Sales and Distribution → Define, copy, delete, check Distribution ChannelAssign Distribution Channel to Sales Organization
Why This Mapping is Required
This enables a Sales Organization to utilize specific channels to deliver goods or services to customers.IMG Customization Steps
IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Distribution Channel to Sales OrganizationDefine and Assign Division
Defining Division in SAP
Divisions are used to group products, helping in price determination and reporting.Assigning Division to Sales Org
Define Division:IMG → Enterprise Structure → Definition → Logistics - General → Define, copy, delete, check Division
Assign Division:
IMG → Enterprise Structure → Assignment → Sales
and Distribution → Assign Division to Sales Organization
Setting Up the Sales Area
Components of a Sales Area
A Sales Area is a combination of:- Sales Organization
- Distribution Channel
- Division
IMG Steps for Setup
IMG → Enterprise Structure → Assignment → Sales and Distribution → Set up Sales AreaAssign Sales Org + Distribution Channel to Plant
Relevance and Link to MM
Plants (defined in the MM module) are linked to SD to facilitate goods movement and stock tracking.Navigation in SPRO
IMG → Enterprise Structure → Assignment → Sales and Distribution → Assign Sales Organization - Distribution Channel - PlantDefine Shipping Points
What is a Shipping Point?
A Shipping Point is the location where deliveries are processed. It's essential for outbound logistics.Configuration Path in IMG
IMG → Enterprise Structure → Definition → Logistics Execution → Define, copy, delete, check Shipping PointAssign Shipping Point to Plant
Why This Link is Crucial
Enables dispatching goods from specific plants using assigned shipping points.IMG Navigation Steps
IMG → Enterprise Structure → Assignment → Logistics Execution → Assign Shipping Point to PlantAdvanced Settings Beyond Basic Structure
Define Common Distribution Channels (VOR1)
This allows sharing of master data (e.g., customer master, material master) between different distribution channels.IMG → Sales and Distribution → Master Data → Define
Common Distribution Channels
Transaction Code: VOR1
Define Common Divisions (VOR2)
Similarly, common divisions allow unified master data across divisions.IMG → Sales and Distribution → Master Data → Define
Common Division
Transaction Code: VOR2
Final Checklist for SD Configuration
| Task | Status |
|---|---|
| Defined Sales Organization | ✅ |
| Assigned Sales Org to Company Code | ✅ |
| Defined Distribution Channel | ✅ |
| Linked Distribution Channel to Sales Org | ✅ |
| Defined and Assigned Divisions | ✅ |
| Set Up Sales Area | ✅ |
| Assigned Plant to Sales Org & Dist. Chan | ✅ |
| Defined & Assigned Shipping Points | ✅ |
| Configured Common Dist. Channels/Divisions | ✅ |
FAQs About SD Config in Enterprise Structure
Q1: What is the first step in SD Configuration?Begin by defining the Sales Organization, which forms the backbone of SD processes.
Q2: Is it mandatory to define a Division in SAP SD?
Yes, it’s crucial as Divisions group products for pricing and reporting.
Q3: Can we skip defining Common Distribution Channels?
No, it's advisable to define them for data consistency across channels.
Q4: Who creates Plants in SAP?
Plants are created by the MM (Materials Management) consultant.
Q5: What is a Sales Area and why is it important?
A Sales Area is a combination of Sales Org, Distribution Channel, and Division. It’s required for all sales transactions.
Q6: Why assign Shipping Points to Plants?
This assignment ensures that goods from various plants are shipped through designated points.
Conclusion
Proper configuration of SD in the SAP Enterprise Structure lays a solid foundation for efficient sales processes, accurate reporting, and seamless integration with other modules. By meticulously defining and assigning each organizational unit, businesses ensure that their sales operations align with SAP best practices.