Integration of SAP SD (Sales and Distribution) Module with SAP MM (Material Management) Module
In SAP modules always get integrated with other modules. SD will interact with FI and MM etc. Here we will discuss about the SD integration points with MM.
SAP SD (Sales and Distribution)
SAP Sales and Distribution (SD) consists of business processes which are required in selling, shipping and billing of a product. Key functions under SAP SD are Customer and Vendor Master Data, Sales, Delivery, Billing, Pricing, and Credit Management.
Functions and Features of the SAP SD
1)Sales Process: The sales process consists of inquiry, quotation, sales order contract, scheduling agreement and processing of the sales order.
2)Price and Taxation: – It helps in evaluating the price of goods and services under various conditions like rebate or discount, which is given to a customer.
3)Availability Check: It Checks the availability of a product in the warehouse of an organization.
4)Billing & Invoice: Helps in generating bills and invoices.
5) Material Determination: Helps in determining the details of materials on the basis of a certain condition.
6) Credit Management: It is a method of managing the credit limits of the customers. It can be simplified in two different ways simple credit check and automatic credit check.
7) Account Determination: Helps in determining the details of customers on the basis of a given condition type.
SAP MM (Material Management)
SAP MM (Material Management) Module helps organizations with material management, inventory management, and warehouse management in the supply chain process. The most prominent and widely used components are Master Data, Purchasing, and Inventory.
Functions and Features of SAP MM
1) Master data management (material and vendor master)
2) It deals with inventory management.
3) Ensures that no shortage of material in the supply chain process.
4) It helps to speed up procurement activities.
5) It helps to accelerate productivity and reduce costs while maintaining accommodations for frequent changes in a business environment.
Integration of SAP SD (Sales and Distribution ) with SAP MM (Material Management)
SAP SD is the sales process whereas SAP MM is main purchasing process along with maintaining materials.
The link between SD and MM is as mentioned below:-
1. When we create sales order in SD, all the details of the items are copied from Material master of MM.
2. MRP and availability check related data is also taken from MM although we can control this data in SD also.
3. When we create inbound/outbound delivery with reference to a sales order, the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.
4. The
material which we are entering in a sales order must be extended to the sales
area of our sales order/customer otherwise we cannot transact with this
material.
There are many such links between SD and MM.
The Integration of MM and SD is linked as follows:-
When we create a third party process a purchase order. Also invoice verification is done further along the process to check that the invoice we send to our customer has the same material and quantity as that what the vendor has send us.
The integration, or interaction, with them would be to specify the tables, fields, input fields, with a simple process explanation, data mapping etc. The link between SD and MM:-
1. When we create sales order in SD with reference to quotation, all the details of the items are copied from Material master of MM of quotation.
The material which we have entered in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material. There are many such links between SD and MM.
The Sales Order in SAP SD is created with T-Code VA01 and contains the following information as mentioned below:-
The terms mentioned in the above Sales Order like:-
Sold to Party, Ship to Party, Sales Document Type are terms related to Sales and Distribution.
The other terms like Material description, item, order quantity and item category, schedule line category, pricing date, deliver plant, delivery block and billing block are terms related
to Material Management.
When we Create any Sales Order with reference to a quotation some of the important characteristics like Sold to Party, Ship to Party, Sales Document Type are copied from Business data of Quotation and some of the characteristics like Material description, item, order quantity and item category, schedule line category, pricing date, deliver plant, delivery block and billing block are copied from Material Master data of Quotation.
In the above manner the Integration of SAP SD with SAP MM takes place in creating sales order with reference to a quotation.
So here we can we can see how terms of SAP SD and MM are mapped and Integrated with each other.
2. MRP and availability check related data is also taken from MM although we can control this data in SD also.
The MRP (Material Requirement Planning ) in SAP is done with T-Code MD01 and Availability Check is done with T-Code OVZ9 as mentioned below:-
Also in the above picture of availability check some of the terms are of SAP SD and some are of MM
Like terms like Safety stock, stock transfer, blocked stock and purchase orders, quality inspection are terms of material management.
Some of the terms like deliveries, sales requirements are terms of Material Management.
When we Create any Sales Order and perform its Availability Check and MRP some of the important characteristics like Safety stock, stock transfer, blocked stock and purchase orders, quality inspection are copied from Material Master data of Sales Order and some of the characteristics like deliveries, sales requirements are terms of Material Management are copied from Sales data of Sales Order.
As you can see above how terminologies of SAP SD and MM are related to each other in an appropriate manner in Availability Check.
In the above manner the Integration of SAP SD with SAP MM takes place in MRP and Availability Check.
3. While you create inbound/outbound delivery with reference to a sales order, the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.
The delivery document in SAP SD is created with T-Code VL01N.
In the above picture Terms like material, quantity, unit, picking, loading, item overview, and status overview are terms related to Material Management.
Terms like Outbound Delivery, delivery date and ship to party are terms related to Sales and Distribution.
When we create any delivery order with reference to Sales Order some of the important characteristics like material, quantity, unit, picking, loading, item overview, and status overview are copied from Material Master Data of Sales Order and some of the characteristics like Outbound Delivery, delivery date and ship to party are copied from Sales data of Sales Order.
You can see above how SAP SD (Sales and Distribution) and MM (Material Management) modules are related to each other.
In the above manner the Integration of SAP SD with SAP MM takes place in creating delivery order with reference to Sales Order.