GLOSSARY OF SAP
ECC SD (SALES
AND
DISTRIBUTION)
A Quick Reference Guide to
SAP Terminologies
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Combination of Sales Organization,
Sales Area Distribution Channel, and Division.
Determines the sales process.
Highest level in SD for sales reporting and
Sales Organization
control. Responsible for product sales.
Means through which products reach
Distribution Channel
customers, e.g., wholesale or retail.
Product line or range grouped for reporting
Division
and control.
Central record that stores all relevant
Customer Master
information about a customer.
Central data repository for all materials,
Material Master
used in multiple modules.
A document representing a sales process
Sales Document
step, like inquiry or order.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
A sales document type used to request
Inquiry
information about products.
A formal offer to a customer with pricing
Quotation
and terms, valid for a period.
A confirmed request from a customer for
Sales Order
products/services under conditions.
Outbound logistics document that initiates
Delivery
goods picking, packing, and shipping.
Document that represents the invoice to
Billing Document
the customer for delivered goods/services.
A billing document that credits a customer
Credit Memo account due to returns or price
adjustments.
A billing document to debit the customer,
Debit Memo
usually due to underbilling.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Specifies delivery dates and quantities in a
Schedule Line
sales order line item.
Determines item behavior in sales
Item Category
documents (pricing, inventory, etc.).
Role a business partner plays in a
Partner Function
transaction (e.g., sold-to, ship-to).
A schema that controls how prices,
Pricing Procedure
discounts, and taxes are calculated.
A component of pricing, such as base price,
Condition Type
discount, or freight.
Strategy used to search for condition
Access Sequence
records in pricing.
Controls how and what kind of output
Output Type
(invoice, order confirmation) is sent.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Type of textual information added to sales
Text Type
documents or master data.
Process of checking material stock to fulfill
Availability Check
a customer order.
Restriction applied to stop further
Delivery Block
processing of delivery until cleared.
Restriction preventing billing until an issue
Billing Block
is resolved.
Defines how data is copied from one
Copy Control
document to another.
Displays linked documents across the sales
Document Flow
process.
Quantity of stock that can be committed to
ATP (Available-to-Promise)
customer orders.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Path goods take from plant to customer,
Route
used in shipping.
Physical location where deliveries are
Shipping Point
processed.
Organizational unit that plans and executes
Transportation Planning Point
transportation activities.
Group of materials with similar loading
Loading Group
characteristics.
Configuration that controls delivery
Delivery Type
document behavior.
Activity of selecting and preparing goods
Picking
for shipping.
Process of grouping items into shipping
Packing
packages.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Process that reduces inventory and posts
PGI (Post Goods Issue)
delivery in SAP.
A type of condition providing incentives
Rebate
based on volume or value.
Document created to process returned
Return Order
goods from customers.
The maximum allowed credit for a
Credit Limit
customer.
Classification of customers for credit risk
Risk Category
management.
Organizational unit managing credit limits
Credit Control Area
across company codes.
Represents a physical or logical location
Sales Office
involved in sales.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
A team or individual salesperson
Sales Group
responsible for sales activities.
Defines behavior of a sales document
Sales Document Type
(order, quote, return).
Classification of customers for pricing,
Customer Group
discounts, or output.
Restricts what materials a customer can
Material Listing
buy.
Blocks certain materials from being sold to
Material Exclusion
a customer.
Data entry that holds pricing conditions for
Condition Record
a condition type.
Billing between two company codes within
Intercompany Billing
the same group.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Sales process where delivery and billing
Cross-Company Sales
happen between different companies.
An invoice issued for customs or internal
Pro Forma Invoice
purposes, not for actual billing.
Standard international trade terms defining
Incoterms
shipping responsibilities.
Allows delivery of a portion of ordered
Partial Delivery
goods.
Occurs when a sales order results in
Delivery Split
multiple deliveries.
Contains data valid for the entire
Sales Document Header
document (e.g., order date).
Contains data specific to each line item in
Sales Document Item
the document.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
A predefined code used to document why
Rejection Reason
an order or line item was rejected.
Tool that identifies missing mandatory data
Incompletion Log
in sales documents.
Calculates delivery dates by starting from
Forward Scheduling
the order date and adding lead times.
Determines delivery date by working
Backward Scheduling backward from the requested delivery
date.
Promotional item delivered free of charge
Free Goods
with an order under certain conditions.
A long-term sales agreement defining
Contract
terms for future orders.
A type of contract with specific delivery
Scheduling Agreement
schedules for ordered items.
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GLOSSARY
SAP ECC Sales and Distribution
Key Concepts
Concept/Term Definition
Outsourcing of receivables management to
Factoring
a third party (factoring company).
The link between Sales & Distribution and
SD-FI Integration Financial Accounting for automatic
postings.
Condition types used for tax calculations in
Taxes (MWST, UTXJ)
pricing procedures.
Code used to track why a customer placed
Order Reason
a particular order.
Master data setup to manage rebates and
Rebate Agreement
track accruals over time.
Structure that groups customers for pricing
Customer Hierarchy
or reporting purposes.
Real-time check of open orders, deliveries,
Dynamic Credit Check
and invoices to manage credit exposure.
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