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1. What is SAP SD?

SAP SD (Sales and Distribution) is a module in SAP ERP used to manage sales, shipping, billing, and distribution of products.

It handles the Order to Cash (O2C) process including:

Inquiry

Quotation

Sales Order

Delivery

Billing

Payment

2. What is Sales Area in SAP SD?

Sales Area = Sales Organization + Distribution Channel + Division

It is used to define sales structure in SAP SD.

Example:

Sales Org: 1000

Distribution Channel: 10

Division: 00

3. Explain Order to Cash (O2C) Process

The Order to Cash cycle includes:

  • Inquiry
  • Quotation
  • Sales Order
  • Delivery
  • Picking & Packing
  • Post Goods Issue (PGI)
  • Billing
  • Payment

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