SAP S/4HANA SD module: what it is and what it does

Although S/4HANA SD is one of the most widely used SAP modules in the business world, many companies still do not understand exactly how this tool works and are unaware of the benefits it can bring to their business. In this post, we give you the keys to start getting familiar with it.

What is SAP S/4HANA SD?

The “SD” in the name stands for sales and distribution, and it’s precisely these two main areas that this module controls. SAP S/4HANA SD covers the entire commercial process of any company, from first customer contact to closing sales, issuing invoices, tracking payments and preparing orders. Bringing the different phases of the sales cycle together in one place simplifies the processes in each of them and achieves greater efficiency.

It’s a basic module for any company, with the advantage that it can be easily integrated with other tools. In addition, if supply chain management is performed with other S/4HANA logistics modules, the business/logistics needs of any type of industry can be covered almost completely.

Typically, organisations implementing SAP always integrate at least part of the capabilities of the SD module. Even companies that do not engage in product manufacture and distribution can benefit from SAP S/4HANA SD. For example, service delivery companies often harness its sales and invoicing features.

To ensure complete 360º customer management, capture opportunities, carry out marketing campaigns, etc., there’s the SAP Customer Experience product suite.

The main uses of SAP S/4HANA SD

SAP S/4HANA SD is very useful for performing some of the most common day-to-day tasks in any company. Key among them are:

• It allows for recording the first exchanges with the customer in the system, in addition to registering the customer in the company’s systems.
• In the pre-sale phase, quotations can be made and recorded in the system.
• Once the sale is confirmed, it allows the registration of a sales order or contract, recording the products, services and prices that have been agreed with the customer.
• It enables the management of other types of agreements, such as bonuses or rebates.
• Once a sale is confirmed, this module allows for streamlined order processing. Its features enable agents to check at any time whether an order is being prepared and whether it has left the company’s premises for delivery. They can also modify the processing of deliveries.
• During the last phase of the process, it facilitates more efficient invoice processing. Within the same module, it’s possible to issue invoices and track their payment status, as well as to create invoice lists and connect this data with the financial area of the company.

SAP S/4HANA SD also features a number of sub-modules that deal with more specific functions, such as overseas trade management, transport operations, computer-based sales and electronic data exchange.

Why introduce this module in your company?

Cross-functional alignment is now an essential requirement for boosting a company’s business performance. Good inter-departmental relations and data exchange increase productivity, and SAP S/4HANA SD contributes to this goal. This module provides a broader view and full control of the entire sales cycle, which will streamline the management of processes at all levels and areas of an organisation.

At NTT DATA, we are your trusted partner for the implementation of SAP S/4HANA. We have a extensive team of experts who will help you to (R)evolutionise your company’s processes. We’ll coach you through your transformation process so you start seeing results in record time. Get in touch with us and start reaping the benefits of SAP S/4HANA now.