When a sales order is placed, the availability is checked and the material is reserved. In FI the creditworthiness of the customer is checked. No postings are generated, but the profit center is determined at this point. At goods issue, the change of the inventory costs is posted to accounting and controlling. At billing the revenues are posted. If the profitability analysis is in use, the sales transaction is valuated with products costs and eventual calculatory costs. A receivable is posted. When the customer pays, the payment is recorded in accounting. In case of no payment the customer is dunned and this is recorded in credit control.

Learn more about sales order process and it’s integration to accounting in Simplified Sales Process.

In this Exercise on Sales Order Processing (PDF), you will be processing a customer order for the fictitious Fitter Snacker company—a manufacturer of snack bars. Fitter Snacker has two products, the NRG-A and NRG-B bars. The NRG-A bar touts “Advanced Energy,” while the NRG-B bar touts “Body Building Proteins”.

1. Creating an inquiry - An inquiry is a non-binding price quotation to a customer that tells them the price of a specific quantity of your product.
2. Create a Sales Order from an Inquiry - If the customer wants to place an order after receiving the inquiry, we can create a sales order from the inquiry so that we don’t have to reenter the basic data.
3. Create a Delivery for the Sales Order - In the SAP R/3 system, a delivery is a status that allows the warehouse to pick, pack and ship the order.
   • Stock/Requirements List - The stock requirements list shows the current inventory level, any outstanding sales orders as well as any planned production orders.
     Logistics ->Production ->MRP ->Evaluation ->Stock/Requirements List
4. Picking the order - With the delivery created, the order can be picked, packed and shipped. The SAP R/3 system has many capabilities to schedule these processes.
5. Post Goods Issue - In the SAP logistics terminology, we receive goods into inventory and issue goods from inventory to the production floor or to the customer. In the accounting world, we record business transactions by posting them to an account. Thus, when we post the goods issue, we record the change in stock level and financial position of the company as a result of sending the goods on their way.
6. Invoice the Customer - Perhaps as important as delivering the customer’s order on time an in good condition is properly billing the customer for their purchase. If we don’t invoice the customer, we aren’t likely to be paid. Thus, it is important to be able to determine which customers still need to be billed.
7. Receive payment from the Customer - Hopefully the invoice has prompted the customer to send in a payment for the snack bars they have received.

Is there any integration between SD module and HR module? Read the Manual on SD and HR Integration to learn more about it.

Here is a detailed planner for SAP SD (Sales & Distribution). Contains Sample SAP SD Interview Questions and also contains a practical exam application developed in Excel. You can take exams on General overview of structure and SD processes, Master data, Sales Process, Shipping, Pricing, Billing, Cross Functional, Solution Manager.

SAP SD FAQ’s
SAP SD Sample Certification Interview Questions
SAP SD Exam Test Application

This article will take you to the sequence of steps involved in Integration on Finance, Material management and Sales and disribution. It covers also on Movement Type and GL Account Determination.