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Last updated on Tue 17 Mar 2020


SAP SD is a  core module of logistics that deals with diverse business methods to meet the patron orders. Know about SAP SD Billing method and its billing plan. Enroll for SAP SD online training


What is SAP SD?

SAP SD stands for Sales and Distribution. It is one of the core modules of logistics that deals with diverse business methods to meet the patron orders beginning from receiving the order of a product until the product is delivered to the client.

The important advantages of SAP R/3 are its integration with internal and outside modules.

SAP SD Enterprise structure:

An enterprise structure of a company is divided into numerous small useful devices for the clean functioning of enterprise method. The organizational devices while grouped collectively form the structure of a business enterprise. The crucial corporation’s units of SAP SD modules are

  1. Sales Organization
  2. Distribution Channel
  3. Division
  4. Sales Group
  5. Sales Office
  6. Sales Area

Sales Organization: Sales Organization is the highest level organizational unit in Sales and distribution module. It is responsible for all the activities of sales and services that happen in the company.

Distribution Channel: Selling or Distributing the goods and services to the patrons is known as a distribution channel. Eg:  wholesale, retail, institutional, and so forth. It can be assigned to one or more sales organization. The identical patron can be served through one or more Distribution Channel, within a Sales Organization.

Division: The division represents a product line or grouping of materials or services. It can be assigned to at least one or extra income organization and distribution channels. Material constantly belongs to simplest one Division.

Sales Office: Sales Office is an organizational unit responsible for sales & distribution, within a geographical area. It establishes contact between company & customer. It can be assigned to one or more sales area and can be subdivided into several sales groups.

Sales Group: Sales Group is an organizational unit that incorporates out income & is chargeable for the method internally. It can be assigned to one or more income office.

Sales Area: Sales Organization, Distribution Channel & Division together forms Sales Area. It defines the distribution channel an income corporation makes use of to sell products from a certain department. A Sales Area belongs to only one Company Code. It is used for reporting & pricing.

Features of SAP SD Module:

The important features of SAP SD module are

Price and Taxation: It evaluates the price of goods and services under various condition types such as rebate or discount granted to a customer.

Availability Check: Check the availability of a product in the warehouse of an organization.

Credit Management: It is a process of managing the credit limits of the customers, credit management can be figured in two ways i.e. simple credit check and automatic credit check

Billing and Invoice: Generate bills or invoice after a sales order for a product or services is placed.

Material determination: Enable to determine the details of materials on the basis of a specific condition type

Account Determination: Helps to determine the details of customers on the basis of a specific condition type.


Billing Method:

A billing approach determines whether or not to create an invoice for every transport or to send an invoice to the client every month.

You can use the subsequent billing method kinds −

  • Individual billing for sales record.
  • Collective Billing technique for more than one sales record.
  • Invoice Split for numerous billing files for one or more sales document.

In Individual Billing method, to create a single billing document for each sales document, make the setting in a system. Example: One invoice per delivery.

In Collective Billing, it lets in to combine exceptional files like sales orders and/or deliveries both in part or absolutely in a not unusual billing file.

Invoice Splits allows creating invoices as per the specific criteria.

Billing Plan

A plan with individual billing dates for items and services is defined as the billing plan in SAP SD. It doesn’t rely upon the transport of goods. Using this invoice plan, you can bill for products or services at normal time durations or at unique dates described within the device in advance.

The system can automatically propose one of two different types of billing plan depending upon the kind of business carrying out: periodic billing or milestone billing.

The two different types of billing plan are as follows:

  • Milestone Billing
  • Periodic Billing

Milestone billing consists of dividing the overall billed amount in more than one billing dates which can be defined in a billing plan. When there's a milestone reached as per defined within the system, the client is charged as according to the challenge value or a predefined quantity as in step with the bill plan. Milestone billing is generally used for long time projects.

Periodic billing includes charging of invoice quantity at a regular interval of time. Example: Suppose you need to pay a condominium quantity monthly as consistent with the agreement. The system can process month-to-month charge as in step with the timetable. Periodic billing plan is generally used within the following categories −

  • For a service like Annual Maintenance contracts, and so forth.
  • For lease agreements.
  • Intellectual Property Management.

SAP Billing Plan Tables:-


   Used for storing


   Billing Plan


   Billing Plan


   Billing Plan: Dates


   Billing Plan: Dates


   Billing Plan Type


   Billing Plan Type: Description


   Date Type for Billing Plan Type


   Date Type in Billing Plan: Description


   Billing Plan: Date Description


   Billing Plan


   Billing Plan: Dates


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