Introduction to Sap SAP SD

SAP is one of the most popular enterprise resource planning (ERP) solutions in the world. It offers an integrated system that supports major business functions such as sales, production, and financial accounting. Over the years, SAP has been enhanced, and new versions have been released. The older SAP R/3 has now developed into the SAP ERP system on which we have based this book.

The latest version of SAP ERP at this time is ERP Central Component, Release 6.0, often referred to as ECC 6.0. It consists of several application components closely integrated with one another. SD is one of these application components. When any organization looks to implement SAP ERP, it first studies its business processes and decides on the ones that are to be mapped in SAP. Based on this, it can select the application components that are relevant. For example, a manufacturing organization may require a different set of applications than a service provider or a trading company.

The Sales and Distribution application caters to the business processes associated with customer order fulfillment. SD has several components offering diverse functionality. For example, there are components for pricing (which control how prices and costs are determined in a sales transaction), availability check (that control how product stocks are allocated to orders from various customers), and credit management (that check the credit worthiness of the customer before a transaction is permitted). Again, you have to select which processes are applicable to you. In an integrated system, each pplication has to mesh with other related applications to ensure continuity and consistency. This is one of the strong points of the SD application.

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