BIZ MODULE2

Vocabulary flashcards summarizing the essential terms and definitions from the Sales & Distribution (SD) lecture using the Global Bike training scenario.

Sales

SD functionality area that handles order processing and pricing for goods and services.

Shipping and Transportation

SD area managing delivery creation, picking, packing, route determination, and goods issue.

Billing

Function that creates customer invoices from sales orders or deliveries and posts revenue.

Credit Management

Tool that monitors customer credit limits and can block orders exceeding risk thresholds.

Foreign Trade

SD capability for handling export/import requirements such as customs and legal controls.

Order-to-Cash Process

End-to-end SD cycle from pre-sales and order entry through delivery, billing, and payment.

Client

Highest SAP organizational unit; an independent environment for business data.

Company Code

Smallest unit for which a full set of legal financial statements can be created.

Credit Control Area

Org entity that grants and monitors customer credit across one or many company codes.

Sales Organization

Unit responsible for selling specific products or services and bearing liability.

Distribution Channel

Path through which products reach customers, e.g., wholesale, retail, internet.

Division

Grouping of materials or services, often representing a product line.

Sales Area

Combination of Sales Organization, Distribution Channel, and Division that drives pricing and master data.

Plant (Delivering Plant)

Location from which goods are delivered to the customer in SD.

Shipping Point

Physical location that performs shipping activities; determined per line item.

Loading Point

Sub-division of a shipping point where loading operations are carried out.

Sales Office

Geographical or functional unit representing a sales location within SD.

Sales Group

Team of sales employees responsible for particular customers or regions.

Sales Person

Individual employee assigned to sell products or services to customers.

Customer Master

Central record containing all data required to process sales, deliveries, billing, and payments for a customer.

Material Master

Comprehensive record storing all information needed to manage a material across SAP modules.

Condition Master

Master data for pricing, surcharges, discounts, freight, and taxes used in SD documents.

General Data (Customer)

Customer master section with organization-wide details such as name, address, and communication info.

Company Code Data (Customer)

Customer master section holding accounting information like reconciliation accounts and payment terms.

Sales Area Data (Customer)

Customer master section with sales‐specific data such as pricing, shipping, and sales office.

Material Master Views

Functional segments (e.g., Basic Data, Sales, Purchasing, Accounting) that structure material data.

Output (SD)

Information sent to customers (invoices, confirmations) via media like EDI, email, fax, or print.

Pre-sales Activities

CRM-light functions that manage inquiries, quotations, and customer interactions before ordering.

Inquiry

Customer request for information or pricing that carries no purchase obligation.

Quotation

Legally binding offer to deliver products or services at specified conditions within a timeframe.

Sales Order

Electronic document that records a customer’s purchase request with items, quantities, pricing, and dates.

Header (Sales Document)

Section containing data relevant to the entire sales order, such as customer and total value.

Line Item

Part of a sales document that details a specific material, quantity, and item-level pricing.

Schedule Line

Entry linked to a line item that specifies delivery quantities and dates, allowing partial deliveries.

Delivery Scheduling

Process that calculates material availability and shipment dates using forward or backward rules.

Availability Check (ATP)

System evaluation that confirms if requested quantities can be delivered on the desired dates.

Shipping & Route Determination

Logic that selects the shipping point and transit route for each order item.

Credit Check

Automatic assessment of customer credit exposure during order processing; can block documents.

Delivery Document

Record that initiates picking, packing, loading, and goods issue for one or more sales orders.

Picking

Warehouse activity of retrieving goods for an outbound delivery, often using WM integration.

Packing / Loading

Steps that assign products to packaging, enforce weight/volume limits, and load them for transport.

Post Goods Issue (PGI)

Event that records physical shipment, reduces inventory, posts COGS, and transfers ownership per Incoterms.

Billing Document

Document that generates an invoice by copying data from the sales order and/or delivery.

Collective Invoicing

Billing method that groups multiple orders or deliveries into a single invoice.

Delivery-based Invoicing

Billing approach that creates invoices directly from individual deliveries.

Split Invoicing

Scenario where one order or delivery is divided into multiple invoices based on defined criteria.

Payment

Final SD step where incoming cash is posted, clearing customer AR and updating bank accounts.

Document Flow

Linked list of all documents in the Order-to-Cash cycle, showing real-time processing status.

Backward Scheduling

Scheduling method that works back from the requested delivery date to determine order start dates.

Forward Scheduling

Scheduling method that begins with order creation and calculates the earliest possible delivery date.