From the course: Learning SAP Sales and Distribution (SD Module)

SD master data overview - SAP ERP Tutorial

From the course: Learning SAP Sales and Distribution (SD Module)

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SD master data overview

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- Correct master data is crucial so that we have accurate sales and distribution transactions in SAP. Let's look at the different types of master data important to our order-to-cash process. There are three primary master data components we rely on for our sales and distribution module: business partners, material masters and conditions. In SAP, customer data is entered and maintained in business partner records. There are many different types of business partners that can be defined, but a few are most important to the SD module. First, the customer record includes all of a customer's contact information. It also has their shipping and payment details. Next, a contact person can be defined and associated with a customer. This allows for proactive sales strategies. Also, credit management can be defined in the business partner roles. This determines the amount of credit a specific customer has available to make a purchase. Next, sales and distribution can't happen unless we have defined our materials that are to be sold. Material master records are the sole source of information about materials that are procured, produced, stored or sold at a company. Standard SAP has many material types available, but in the sales and distribution process, there are a few we are most concerned with. First finished products are products that are produced internally at the company and are available for sales to customers. Next, trading goods are products that are bought externally and then sold to customers. Finally, the services material type allows for the sale of services to a customer. An example of this would be consulting services. The third piece of SD master data we want to cover is called conditions. Conditions drive how much a product or service will cost to a customer. Condition records are configured for pricing, tax information, freight costs and discounts, which can be granted for a specific material or for a distinct customer. All these master data components work together to enable the accurate order-to-cash process at a company.

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