The 48-year-old was charged with misconduct by the Football Association last week following an incident which took place at half time of Swindon's 1-0 defeat at Gigg Lane.
Sherwood admitted the charge and has now been hit with an immediate two-game stadium ban in addition to a £2,000 fine.
"Tim Sherwood will serve a two-match stadium ban with immediate effect after he admitted an FA misconduct charge," read a statement on the FA website.
"The Swindon Town director of football used abusive and/or insulting and/or improper words and/or behaviour towards a match official in or around the tunnel area at half time of the game at Bury on 11 February 2017.
"Following the Independent Regulatory Commission hearing today, he was also fined £2,000."
The former Tottenham Hotspur and Aston Villa boss took over as Swindon's director of football in November, since when the Robins have won three, drawn five and lost 11 of their outings, leaving them four points from safety in League One.