SAP SD (Sales and Distribution) Overview

SAP SD is one of the core modules in SAP, designed to manage all aspects of the sales and distribution processes. It is intuitive and structured in a way that makes it easy to understand the key concepts and terminology.

The SAP SD module handles the entire sales cycle—from initial inquiry to quotation, order processing, delivery, billing, and receipt of payment. This end-to-end cycle is commonly referred to in SAP as the Order-to-Cash (OTC) process.

Key Stages in the OTC Process:
– Inquiry: Initial customer request for product or service information
– Quotation: Formal offer with pricing and terms
– Sales Order: Customer’s confirmed request
– Delivery: Physical dispatch of goods or services
– Billing: Generation of invoice
– Payment: Completion of financial transaction