Phase 08: Jargon Busting

This page explains logistics and shipping terminology for consultants and prototype builders. In short, it translates SAP jargon into clear, human language. It matters because SAP hides simple ideas behind complicated words, and clarity removes friction. Use it when learning, teaching, or double checking meaning, and avoid overcomplicating these terms unless you enjoy confusion.

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Term	Plain English Explanation
Accounting Document	A digital receipt SAP creates to remember what money moved where.
Availability Check	SAP’s way of checking if an item is actually in stock before promising it to someone.
Available to Promise (ATP)	SAP adds up what you have, subtracts what is already promised, and tells you what you can safely ship.
Batch	A group of items made at the same time, like a tray of identical cookies.
Billing	The process of creating the bill you send to customers so you can get paid.
Bill-To Party	The person or company responsible for paying the invoice.
Business Partner (BP)	SAP’s giant contact card for customers, suppliers, and even your own warehouses.
Carrier	The delivery company that collects the goods and moves them across the country.
Company Code	A digital version of a legal company. Each one keeps its own books inside SAP.
Customer Master	A full profile SAP uses to know everything about a customer: address, delivery rules, payment details.
Delivery	The SAP document that organises picking, packing, and shipping.
Delivery Date	The date SAP believes the customer will receive the order. The honest target, not the fantasy one.
Delivery Priority	A ranking that helps SAP decide which deliveries matter most when time is tight.
Distribution Channel	How you sell your products, such as online shop or retail store.
Document Flow	SAP’s built-in timeline showing what happened from order to invoice.
Freight	The cost of moving goods from one place to another.
Goods Issue	The moment SAP says the goods have officially left the warehouse.
Goods Receipt	The moment SAP says the goods have officially arrived.
Handling Unit (HU)	A tracked box or pallet with a label. Like a suitcase tag for products.
Inbound Delivery	A delivery document for goods arriving into your warehouse.
Loading Group	A label that tells SAP how a product should be handled when it is loaded. Light, heavy, fragile.
Material Master	The full profile of a product: weight, size, description, rules.
Movement Type	SAP’s way of classifying stock movements, like goods in or goods out.
Outbound Delivery	A delivery document for goods leaving your warehouse.
Packing	Putting items into boxes or onto pallets for shipping without breakage.
Partner Functions	The different roles people play in the process, like who receives or who pays.
Payment Terms	The rules for when a customer must pay an invoice.
Picking	The warehouse step where someone grabs the correct items from shelves.
Plant	A warehouse, factory, or location where stock is kept or produced.
Post Goods Issue (PGI)	SAP’s official “the truck has left the building” moment.
Pricing	The logic that determines how much you charge: list price, taxes, discounts.
Route	SAP’s plan for how goods travel to the customer, including how long it takes.
Route Determination	How SAP chooses the route based on the customer, product, and shipping rules.
Sales Area	A combination of sales organisation, distribution channel, and division that controls selling rules.
Sales Document	Any document that starts the sales process, such as a sales order.
Sales Order	A customer request for goods that kicks off delivery planning.
Sales Organisation	The part of the company responsible for selling to a specific customer or region.
Segment	A financial reporting slice of the business.
Ship-To Party	The person or warehouse receiving the goods.
Shipping Condition	A rule describing how a customer expects the delivery, such as express or economy.
Shipping Point	The physical area where goods are prepared and dispatched.
Storage Location	A specific area within a plant where items are stored. Like “Aisle 6, Shelf 3.”
Stock Transport Order (STO)	An order that moves stock from one of your warehouses to another.
Transportation Group	A label describing how a product should travel, such as parcel or pallet.
Transit Time	How long the journey is expected to take.
Valuation	SAP’s method of keeping track of how much stock is worth.
Warehouse Request	SAP’s internal trigger that something needs to be picked or moved.
Weight Group	A weight range that helps SAP decide how the shipment will travel.

Author: Isard Haasakker

Organisation: No Tie Generation Limited

Framework: Fast Implementation Track

Canonical Link: https://fit4sap.notion.site/phase-08-jargon

Updated: 04-Dec-2025

License: CC BY-NC-SA 4.0T

ags: #jargon #logistics #sap #clarity #fit4sap