SD (Sales and Distribution) supports selling from a customer enquiry through order, delivery and invoice to collection. It is where revenue originates, which is why it connects to so much else.
The standard process
A typical sequence looks like this. Not every stage is always used โ repeat business often starts at the order.
| Stage | Document | Code | What happens |
|---|---|---|---|
| Enquiry | Inquiry | VA11 | Record a customer question |
| Quoting | Quotation | VA21 | Offer price and date with a validity period |
| Order | Sales order | VA01 | Confirm the order and reserve stock |
| Preparation | Delivery | VL01N | Instruct picking and packing |
| Goods issue | Material document | VL02N | Stock falls and cost of sales is posted |
| Billing | Billing document | VF01 | Receivable and revenue are posted |
| Payment | FI document | F-28 | The receivable is cleared |
Document flow
SD documents are not independent. Each is created with reference to the one before, and that chain of references is the document flow.
It means you can move in either direction from any document: from an order, see whether it has shipped and been invoiced; from an invoice, find the order behind it. The document flow button in VA03 is among the most-used features in day-to-day work.
Where SD touches other modules
| Action in SD | Module involved | What happens |
|---|---|---|
| Create a sales order | MM (inventory) | Availability check and reservation |
| Create a sales order | FI (credit) | Credit limit is checked |
| Create a sales order | PP (production) | Requirements are generated for make-to-order |
| Post goods issue | MM (inventory) | Stock quantity decreases |
| Post goods issue | FI | Cost of sales and inventory are posted |
| Post billing | FI | Receivable and revenue are posted |
| Post billing | CO-PA | Profitability data by product and customer is created |
Note that accounting is touched twice: goods issue posts inventory out to cost of sales, and billing posts the receivable and revenue. They are separate events and can fall in different periods.
Three levels in a document
| Level | What it holds | Examples |
|---|---|---|
| Header | What applies to the whole document | Sold-to party, document date, payment terms, currency, sales area |
| Item | Per product | Material, quantity, price, plant, ship-to party |
| Schedule line | Quantity per date | Confirmed date and quantity; supports split deliveries |
Schedule lines exist because one item may be delivered in instalments โ sixty units this week, forty next month โ without splitting the item.