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SAP SD (Sales and Distribution) and SAP PP (Production Planning) are core modules in the SAP ERP system, each addressing specific business processes. Here’s a high-level overview of both:
SAP SD (Sales and Distribution)
SAP SD focuses on managing the entire sales and distribution process within an organization. It streamlines and automates sales order processing, delivery, and billing activities. Key components include:
Sales
- Inquiry and Quotation: Recording and managing customer inquiries and quotations.
- Sales Order Processing: Creating and tracking customer sales orders.
- Pricing: Managing pricing conditions, discounts, and taxes.
Shipping and Delivery
- Delivery Creation: Handling outbound deliveries.
- Picking and Packing: Managing warehouse logistics for shipping.
- Transportation: Planning and executing shipment processes.
Billing and Invoicing
- Generating invoices based on deliveries and sales orders.
- Managing payment terms and integration with finance.
Credit Management
- Monitoring customer credit limits and risks.
Integration
- SAP SD integrates with SAP MM (Materials Management) for inventory, SAP PP for production planning, and SAP FI (Financial Accounting) for billing.
SAP PP (Production Planning)
SAP PP is used to manage manufacturing and production processes. It ensures the efficient planning and execution of production activities. Key components include:
Master Data
- Material Master: Information about raw materials, components, and finished goods.
- Bill of Materials (BOM): The list of components required to produce a finished product.
- Work Centers: Machines and labor resources involved in production.
- Routings: The sequence of operations for manufacturing a product.
Production Planning
- Demand Management: Forecasting and planning production based on sales orders or forecasts.
- Material Requirements Planning (MRP): Calculating material needs and creating purchase or production orders.
- Capacity Planning: Ensuring resources (machines, labor) are sufficient for production schedules.
Shop Floor Control
- Monitoring production orders and managing workflows on the shop floor.
Integration
- SAP PP integrates with SAP SD for sales order-driven production and SAP MM for material availability.
SD and PP Interaction
In many organizations, these modules work together. For example:
- A sales order in SAP SD may trigger production in SAP PP.
- Based on the production schedule, materials can be reserved, and shipping dates can be planned.
Let me know if you need deeper details about any specific process!