What is 'sold-to party' in SAP SD - Sales and Distribution?
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Component: SD
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Component Name: Sales and Distribution
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Description: A person or company that places an order for goods or services. The sold-to party can also fulfill the function of payer, bill-to party, or ship-to party.
sold-to party - Details
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Term: Sold-to Party
Component: SD - Sales and Distribution
Definition: The Sold-to Party in SAP is the business partner or customer who places an order for goods or services. This party is responsible for initiating the sales transaction and is the primary contact for sales-related communication.
How It’s Used: In real SAP projects, the Sold-to Party is the key customer master record used when creating sales orders, quotations, contracts, and scheduling agreements. It determines pricing, delivery terms, and billing details. For example, when a sales order is created, the Sold-to Party is specified to identify who is ordering the product, even if the goods are shipped to a different address (Ship-to Party) or billed to another party (Bill-to Party).
Important Configuration:
- Create and maintain Sold-to Party master data using T-code VD01 (Create Customer - Sales Area Data) or XD01 (Create Customer - General Data)
- Assign Sold-to Party to appropriate Sales Area (Sales Organization, Distribution Channel, Division)
- Maintain partner functions in the customer master to define roles like Ship-to Party, Bill-to Party, and Payer
- Configure partner determination procedures in sales documents to automatically propose Sold-to Party and related partners
sold-to party - Related SAP Terms
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