Nandini Padiyar

SA/A14/PSM/0029

Sales and Distribution module in ERP

Sales and Distribution is important module of SAP. It handles all the processes of order to delivery. SAP Sales and distribution execute the business processes used in the selling; shipping and billing of products and services.

Sap Sales and distribution handles all the activities of sales and distribution.

The sales and distribution module of ERP vendors offer a comprehensive set for both order and logistics management. Many of the system are tightly integrated with the Distribution Requirement Planning (DPR), the engine of the ‘just-in-time’ deliveries. This integration maps the supply of single site or multi-site organization. This system can also generate replenishment orders by using warehouse requirements.

Sales and Distribution model of ERP consists of all master data, system configuration and transactions to complete the process of Order to Cash. The main functions of of Sales and Distribution are:-

Ø  Inquiries and Quotes

Ø  Sales order

Ø  Sales Return

Ø  Consignment

Ø  Contracts and Scheduling Agreements

Ø  Credit and Debit memo request

Ø  Orders & cash sales

Ø  Back orders and subsequent deliveries 

Sales and Distribution module will contain following subsystem:-

1. Master Data Management:- This module is to keep information about all entities so that they can be made available to the decision-makers and also for the automatic generation of reports, contracts, invoices ,etc.. In Sales and distribution product are sold/sent to business partners.

2. Order Management: - This module usually includes Sales Order Management, Purchaser Order Management and even supports the entries sales and purchase processes from start to finish. Order management is a combination of efficient management solution with the possibility of anticipating and quickly responding to change in global business conditions.

3. Sales Order Management: - This application allows company to manage sales operations efficiently and quickly and also provide comprehensive solutions to the management for quotes , prices, contracts, orders and customer discount.

4. Purchase Order Management:-This application enables a company to make the correct purchase decision about quality and price, where quality refers to supply lead-time as well as to the product itself. Purchase Order Management, includes on-line requisitioning, just-in-time schedules, Centralized contract management, and vendor management. The information on purchase contract is made available to the people in the purchasing department. This information will help in supplier selection to provide an insight as to which suppliers can supply items with the right specifications in the shortest period of time. This system will have facility to generate purchase contracts.

5. Warehouse Management:-This module provides real-time information about inventory levels across all the enterprise and tools to manage the daily operations needs of single-site or multiple-site four-wall warehouses.

Components of a good Warehouse Management Application Shall include the following:

Inventory Planning:

Which enable the accurate forecasting of trends and the consequent adjustment of safety stocks, recording points, lead-times for orders and service levels.

Inventory Handling:

Monitoring of all warehouse order scenarios such as the receipt issue and transfer of inventory.

Intelligent Location:

Assignment used to create intelligent storage put away lists, which enables the storage of goods that are automatically inspected for quality and the detection of dedicated locations by criteria and location availability.

Inventory Reporting:

Full visibility of inventory at single or multiple sites and provides a company with the tools to give customers accurate delivery date.

Inventory Analysis:

This module enables the analysis of information that result from warehousing activities as well as the use of feedback in process optimization.

Lot control:

This facilities offers lot tracking so that a company can trace all the raw materials and finished goods that its products require.

Distribution Data Collection:

One of an essential element in paperless warehousing that provides the communications link between storage and shipping systems and warehousing equipment (bar-coding scanners).

6. Shipping:- This module supports the following functions:-

a)Monitoring dates of orders due for delivery 

b)Creating and processing deliveries

c)Planning and monitoring work lists for shipping activities

d)Monitoring material availability and processing outstanding orders

e)Picking

f)Packing delivers

g)Information support for transportation planning.

h)Support for foreign trade requirements.

i)Printing and sending shipping output

 j)Data update in goods issue

7. Billing:-A business transaction is said to be completed for sales and distribution once it has been billed. The ERP system supports billing functions like issuing of invoices on the basis of goods and services, issuing of credit and debit memos based on corresponding requires and Performa invoices, cancelling billing transactions, giving discounts, transferring billing data to Financial Accounting, Purchasing, etc.

8. Pricing:-The pricing module keeps the information about the prices of the various items, the details about the quality discounts, the discounts to the different customers and so on to enable the organization to generate documents like quotations, delivery notes, invoices and so on.

9. Sales Support:-This component helps the sales & marketing department to support your existing customers and at the same time to develop new business. Sales Support provides an environment where all sales personnel both the field sales people and the staff in the sales office can contribute to and access valuable information about customers, sales prospects, competitors and their products and contract people.

10. Transportation:-Transportation is an essential/main element of the logistics chain. Transportation effects both inward and outward movement of goods. Effective transportation planning is required to ensure that shipments are dispatched without delay and they arrive on schedule. Transportation cost playa an important role in determining the price of a product. It is important that these transportation costs are kept to a lower in order to keep the price of a product competitive.

11. Foreign Trade:-In domestic and in international trade, you are required to adhere strictly to the laws and regulations. The growing tendency towards the formation of trade areas is a further challenge to accompany operating on a worldwide basis

Due to all the above benefits and many more, SAP Sales and Distribution module is adopted by huge number of enterprises across the globe and today it is one of the most popular of ERP systems globally.