SAP SD (Sales & Distribution) manages the order-to-cash cycle: quotations, sales orders, pricing, availability checks, deliveries, shipping and billing.
It addresses how a business sells — accurate pricing and discounts, reliable delivery promises, and correct invoices. SD connects closely with MM for stock, with FI for revenue and receivables, and with logistics execution for shipping.
In S/4HANA, SD is part of Sales. Notable changes include Business Partner for customers, simplified document flow, SAP Credit Management replacing classic credit checks, and settlement management replacing older rebate processing.