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Published by: MuralikrishnaKommineni on Nov 03, 2012
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SAP SD Enterprise Structure
 Enterprise structure or Organizational structure in SAP is a structure of SAP organizational units that reflects the structure of the business in thereal world. There are various SAP organizational units that can be mappedto business structure based on the real world business requirements suchas: Client, Company Code, Plant, Storage Location, Sales Organization,Distribution Channel, Division, Sales Office, Sales Group, Sales Person,Shipping Point, Loading Point, etc.We must set the enterprise structure correctly in the first place. The changeof it usually requires a great effort and very time consuming. To set it upcorrectly we must have a comprehensive knowledge about the businessprocesses and how to map it to SAP configuration. A specific organizational unit is defined by a specific function or module inSAP. Company code is defined by FI module. Plant is defined by Logisticsfunction. Storage Location and Purchasing Organization are defined by MMmodule.In SD module we have to define Sales Organization, Distribution Channel,and Division. We have an option whether to use Sales Office, Sales Group,and Sales Person or not.
Sales Organization
 Sales Organization is an organizational unit that responsible to sell anddistribute products and negotiate the term of sales to the customers. SalesOrganization is the highest organizational unit in SD module. We shouldhave only one Sales Organization in one company code. We must have avery good reason in term of business process to create more than oneSales Organizations in one company code. For example, we want to dividethe market into regions where each region is responsible for its own
product liability and customer rights-of-recourse (right to recover a baddebt). A sales organization must be assigned exactly to one company code. A sales organization is assigned to one or more plants.
Distribution Channel
 Distribution Channel is an organizational unit that represents the channelthrough which the materials or services reach the customer, such aswholesale channel, direct sale channel, retail channel, etc. A distribution channel can be assigned to one or more sales organizations.
 Division is a way to group materials or services. A wide range of materialsor services can be divided into divisions. A material or service is alwaysassigned to just one division.In SAP SD, the use of divisions allows us organize our sales structurearound groups of similar products or product lines. We can define adivision-specific sales structure. Within a division, we can also carry outstatistical analyses or devise our own marketing strategies.
Sales Area
  A sales area is a combination of sales organization, distribution channeland division. Sales documents, delivery documents, and billing documentsare always assigned to a sales area. Every sales process always takes in aspecific sales area.
SAP SD enterprise structure and master data
 Master data is data records that remains in the database for a long periodof time. In SAP SD module, master data includes materials, customers,conditions (pricing), etc.
Master data is created centrally and can be used in all applications. Acustomer is master data that can be used in customer requests, orders,deliveries, invoices, and payments.Master data also has an organizational aspect as it is assigned toorganizational units.
Material master data
 Division is a field in the material master data (it can be input/edited on
“Basic Data 1” view by MM01/MM02 t
code). That’s why a material is
always assigned to just one division. A material can be sold through one or more distribution channels in one or more sales organization. To allow it, we have to maintain the materialmaster data for each combination of sales organization and distributionchannel.We can set different data of a material for each combination sales
organization and distribution channel, such as: “minimal order quantity” and“minimal delivery quantity” data. By doing so, for example, a material must
be ordered by customer minimal 1000 PC for wholesale channel and 10 PCfor retail channel (assumed we only have one sales organization).
Customer master data
 A customer can buy one or more divisions (group of products or services)from one or more distribution channels in one or more sales organizations.To allow it, we have to maintain the customer master data for eachcombination of sales organization, distribution channel, and division (whichis a sales area).

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