Arrange the processes in SD in sequential order
sale order, delivery, Goods issue, Shipment & billing.

What is delivery?
Goods Issue
shipment

and what is the significant differences?

What is proof of delivery concept?

How is Distribution Channel sales processes different from
Direct Sales? how it is handled in SAP?

Answer Posted / aditya

Delivery is the process of transporting goods. Most goods
are delivered through a transportation network. Cargo
(physical goods) are primarily delivered via roads and
railroads on land, shipping lanes on the sea and airline
networks in the air.

In SAP SD it is of two Type. One is INBOUND & other is
OUTBOUND delivery. For out bound delivery we suppose to
deliver ordering quantity of proposed goods, after outbound
delivery the shipping, billing process has been started. But
In bound delivery creates for an existing returns.

T-code for creating a delivery is "VL01".

After the order, we need to check the availability of
ordering quantity, confirm the availability, pick the
proposed quantity & pack those, Load those quantities. After
delivery stock will reduces from the store. Till this is
called goods issue. For outbound delivery we need to do PGI
& for in bound it is PGR (Post goods receipt)

The shipment is the freight being transported, which
includes the hazardous material contents and the containment
system (box, tank truck, fitting, valves, lids, labels,
etc.) described in the shipping documents

For post goods issue the shipment procedure must be
completed. Goods Issue is the process to check the
availability & confirm up to packing. And shipment is the
process / arrangement to lift those goods to the partners
place by confirming the shipping point & mode of
transportation.

Proof of delivery is a method to establish the fact that the
recipient received the contents sent by the sender. Or A
receipt showing date and place of delivery to consignee, and
the signature of the person receiving the shipment.

Direct Selling is the sale of a consumer product or service,
person-to-person, away from a fixed retail location. These
products and services are marketed to customers by
independent salespeople. Depending on the company, the
salespeople may be called distributors, representatives,
consultants or various other titles. Products are sold
primarily through in-home product demonstrations, parties
and one-on-one selling.

Distribution channel is the route by which a product or
service is moved from a producer or supplier to customers. A
distribution channel usually consists of a chain of
intermediaries, including wholesalers, retailers, and
distributors, that is designed to transport goods from the
point of production to the point of consumption in the most
efficient way.

While assigning the company to sales area if we want direct
sale then no need of the distribution channel to assign in
the sales area. If we need it then we can assign.

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