SAP Sales and Distribution (SD) Lecture Notes

This set of vocabulary flashcards covers key organizational units, master data types, and process steps within the SAP S/4HANA Sales and Distribution (SD) module.

Software Version

The curriculum uses S/4HANA $2023$ and Fiori $3.0$.

Global Bike Version

The model version used is $4.3$ (July $2025$).

Client

An independent environment in the system.

Company Code

The smallest organizational unit for which you can maintain a legal set of books.

Credit Control Area

An organizational entity which grants and monitors a credit limit for customers; it can include one or more company codes.

Sales Organization

An organizational unit responsible for the sale of certain products or services, which may include legal liability for products and customer claims.

Distribution Channel

The way in which products or services reach the customer, such as wholesale, retail, or direct sales.

Division

A way of grouping materials, products, or services.

Sales Area

A combination of Sales Organization, Distribution Channel, and Division that determines conditions like pricing for sales activities.

Plant (Delivering Plant)

The plant from which the goods should be delivered to the customer.

Customer Master Data

Contains all information necessary for processing orders, deliveries, invoices, and payment; it must exist for every customer and is divided into General, Company Code, and Sales Area data.

Material Master Data

Contains all information a company needs to manage about a material, stored in functional segments called Views.

Condition Master Data

Includes prices, surcharges, discounts, freights, and taxes.

Output

Information sent to the customer via media such as EDI, email, mail, fax, or XML, including order confirmations and invoices.

Inquiry

A customer's request for information or a quotation regarding products or services without any obligation to purchase.

Quotation

A legally binding offer to the vendor to deliver specific products or services in a specified timeframe at a pre-defined price.

Sales Order Header

The part of the sales document containing data relevant for the entire order, such as customer data and total cost.

Line Item

The part of the sales document containing information about the specific product, such as material, quantity, and individual cost.

Schedule Line

A component that uniquely belongs to a Line Item and contains delivery quantities and dates for partial deliveries.

ATP (Availability to Promise)

The material availability date determined by the system using forward and backward scheduling rules.

Shipping Point

The location determined for each line item within an order from which the material will be shipped.

Route Determination

Used to define the transit time of the material used in scheduling.

Post Goods Issue

An event indicating the legal change in ownership of products, which reduces inventory, enters Cost of Goods Sold, and automatically updates General Ledger accounts.

Incoterm

Terms and conditions written in the sales order that determine when the legal change in ownership of products occurs.

Billing Document

Created by copying data from sales orders or delivery documents to generate customer invoices and update credit status.

Document Flow

A feature that allows the user to find the status of an order at any point in time by updating every time a change is made in the Order-to-Cash cycle.