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March 28, 2021 by saptutorials

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This SAP SD Tutorial we will explains about SAP SD organizational structure. After
following the tutorial, you will learn how to model enterprise structure in SAP SD (Sales
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and Distribution) module of SAP ERP. Knowledge of SAP SD organizational structure is
fundamental for analysts and consultants that specialize in SAP SD, and here you will career
learn about each of the SD Enterprise Structure. fiori app library

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 Understanding SAP SD organizational arrangement is essential for analysts and MDM
consultants that focus on SAP SD & we’ll learn about all of the SD Enterprise Structure. I’ll SAP ABAP
learn how to portray the specific organizational structure of business in the R/3 System &
SAP APO
this will help build company structure; different Accounting, Logistics, and Human
SAP FI
Resources organization units are provided.
sap industry solutions

The thumb rule is first to analyze the structures and business procedures for the company SAP MM
and then match them to the SAP structures. In the standard version, there are different SAP PM
organizational elements defined. Normally these would not cover all your needs. Extend SAP SD
the elements as required.
shortcuts and tricks
Software development
During the implementation stage, work with the structures delivered by SAP. To obtain a
Tech Trends
high degree of identification and acceptance from project members and user departments
from the start, you may have to change some of SAP’s terminology based on business Tutorials
requirements. Uncategorized

Sales organizations can be used to subdivide the market by region. In legal terms, the
sales organization is a sales unit. It is responsible for product responsibility, customer
complaints, and sales terms (pricing, payment terms). When performing any SD business
transactions, a sales organization needs to be specified. Popular Posts

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 Handling Units in SAP:
What You Need to Know
in 2022

How to Understand EDI:

A blog around the
fundamental principles
of EDI

How to optimize batch

management in sap
enterprise structure in SAP SD

How to learn sap for free

Table of Contents  How to write functional

1. What is Sales Organization in SAP SD specification document
1.1. Sales Organization
2. What are the functions of sales Organisation? What is the Difference
3. How do you create a sales organization in SAP? Between a Bill and an
Invoice?
4. What is distribution channel in sap
4.1. Distribution channel
5. What is the purpose of the distribution channel? Simple Ways to Enhance
your SAP Shipment
6. How do you create a distribution channel in SAP? Process
7. What is Division in sap
7.1. Division
Best 20 SAP FICO
8. What is the purpose of the Division? Interview Questions &
9. How do you create a division in SAP? Answers in 2022
10. What is sales area in SAP?

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 10.1. Sales Area Top 10 Ways to Maximize
SAP HANA Hardware
11. How do you create a Sales area in SAP?
Investment
12. What is Shipping points in SAP?
12.1. Shipping points
A Simple Explanation
13. How do you create a Shipping Points in SAP?
About Profit Center &
14. What is Plant ? Cost Center In
14.1. Plant Accounting
15. How do you create a Plant in SAP?
16. What is Storage Location in SAP
17. How do you create a Storage Location in SAP?
18. What is Internal Organisational Units in SAP?
19. What is Sales office ?
19.1. Sales office
20. What is Sales group ?
Recent Posts
20.1. Sales group
21. What is Sales Person?
21.1. Sales Person Handling Units in SAP:
What You Need to
Know in 2022
What is Sales Organization in SAP SD
How to Understand
Sales Organization EDI: A blog around the
fundamental principles
Sales Organization stands for The legal selling unit responsible for negotiating the terms of EDI
of a contract, product liability, and addressing consumer complaints. Often represents a
How to optimize batch
geographic subdivision of a sector.
management in sap

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 Sales Organization assigned to only one company code. How to learn sap for
Exactly one company code is assigned to a sales organization. free
One or more plants are assigned to a sales organization How to write functional
specification document
What are the functions of sales Organisation?
It’s the highest level of an organizational unit in SD, responsible for selling certain products
or services. Legal responsibility for products and customer claims may be the responsibility
of a sales organization. The sales organization, for example, has its master data, customer Subscribe to Blog
and material master data, and conditions. via Email

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 Archives

April 2022
March 2022
Define sales organization in sap sd
February 2022
January 2022
A two character alphanumeric key and a description. December 2021
A distribution channel does not have its own address.
November 2021
You cannot allocate your own employees to a distribution channel.
October 2021
One distribution channel can be allocated to one or more sales organization.
One or more plants can be allocated to a distribution channel. September 2021
Distribution Channels can be set up according to the company’s market strategy August 2021
or internal Org. July 2021
In addition, you can modify the master information for each sales organisation
June 2021
and distribution channel, such as customer master data, sales master data and
May 2021
prices and additional / discounts.For a distribution channel, you can determine
your own sales document types. April 2021
Typical examples of distribution channels are: March 2021
wholesale, February 2021

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 retail January 2021
direct sales December 2020
November 2020
What is distribution channel in sap October 2020

Distribution channel September 2020

August 2020
A distribution channel represents the way you spread your goods into the market. It may
July 2020
be retail, retail, or OEM, for example. In other words, a distribution channel is a grouping of
June 2020
Various distribution methods a company uses to distribute products to its Clients.

Several distribution channels might be used inside the SD module. Some common causes
of supply channels are retail, retail, or direct earnings (i.e., the producer sells directly to the
client ). It’s Potential for a client within a specified sales organization to use multiple
distribution channels. Distribution methods that the sales organization will use to distribute
products and services to its customers. Distribution channels are available across the
sales organizations. Tis means you can assign the same distribution channel to multiple
sales organizations

Distribution Channel represents the method to market.

Assigned to sales organizations.

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 Enterprise Structure

What is the purpose of the distribution

channel?
Every combination of the sales organization and distribution channel will have different
master data in SAP. This could lead to changes in pricing, standard order, distribution
amounts, or the delivery of plants, for example. Cross-company distribution networks are
possible.

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 To provide the best possible service, we can utilize different distribution channels in
S&D.
Distribution channels provide a general distribution structure. Typical examples of
distribution channels are wholesale trade, sales to industrial customers, or direct
sales from the facility.
One or more distribution channels in a sales organization can be supplied to
customers.
You can define your master data for customers or materials and your pricing and
pricing through a distribution channel.

How do you create a distribution channel in

SAP?
Configuring a distribution channel is a two-step activity

SAP Customizing Implementation Guide ➢Enterprise Structure➢ Definition ➢Sales and

Distribution➢Define, copy, delete, check distribution channel.

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 Distribution channel in sap

A two character alphanumeric key and a description.

A distribution channel does not have its own address.
You cannot allocate your own employees to a distribution channel.
One distribution channel can be allocated to one or more sales organization.
One or more plants can be allocated to a distribution channel.
Distribution Channels can be set up according to the company’s market strategy or
internal Org.
You can also change the master data for sales, such as customer master data,
sales master data, prices and surcharges/discounts for each Sales Organization

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 and Distribution Channel
For a distribution channel, you can determine your own sales document
types.Typical examples of distribution channels are:
Wholesale
Retail
Direct sales.

What is Division in sap

Division

Division in SAP denotes the product division which exists in client business. It’s a means to
group similar product or product lines in SAP. When we produce a material master record
in SAP, we can make it to get a Division specific.

Division is a cross-application component within Logistics. Division is a cross-application

component within Logistics. It also serves as a connection point for the MM, PP, and SD
applications. We use divisions to establish a distribution area in SD, but MM and PP
consultants are usually in charge of deciding the product divisions need to be set up.
Before creating a division in SAP SD, make sure to collaborate closely with your MM and
PP counterparts.

Represents a product line.

Assigned to sales organizations.
A division can be allocated to one or more sales organizations.

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 A division can be allocated to one or more distribution channels.
The area for the material is determined via the plant and the division defined in the
material master record.

What is the purpose of the Division?

The company is referred to as divisions as a broad range of products.
Only one division shall always be allocated to the material.
For each combination of sales organization and division there is a reference division
for master data and sales document types. This also allows data to be used in the
original section in the reference section

How do you create a division in SAP?

Enterprise Structure➢ Definition➢ Logistics -General➢ Define, copy, delete, check
division➢Division.

How products or services reach the client.

A two-digit alphanumeric key and a description.

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 Define Division

What is sales area in SAP?

Sales Area

In the SD module, a sales area is the bare minimum Structure needed to process a sales
transaction. It brings together the sales organization, distribution channel, and division that
we’ve developed so far. Without a sales area, you can’t build a sales document or enter a
customer master record in SD. We’ve only made two sales so far.

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 Sales area in sap

How do you create a Sales area in SAP?

Enterprise Structure➢ Assignment ➢ Sales & Distribution ➢Set up Sales area

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 Setup Sales area

What is Shipping points in SAP?

Shipping points

Shipping points are self-contained organization structures that handle the collection and
control of deliveries as well as the distribution of products. Just one loading point
processes a shipment.

A location or group of employees who process a deliveries.

Can further sub-divided into loading points.

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 Shipping points are assigned to plants.
A group of employees who organize transportation activities.

How do you create a Shipping Points in SAP?

Enterprise Structure➢Definition ➢ Logistics Execution➢Define, copy delete, check
shipping points

Define Shipping Points

What is Plant ?
Plant

Plant is an organizational entity central to the logistics operation. A plant could be a factory
for production, a material stock, or a repair shop.. From the point of view of SAP SD, a

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 plant can be defined as a material stock location from where you can source the delivery of
goods to your customers.

Materials Management and MRP requires the use of plants.

Sales Organizations sell goods from plants.
Plants can be assigned to multiple sales organization and distribution channel
combinations.

If a plant is assigned to a sales organization within a different company code, then the set
up is for an intercompany sale.

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 sales organization structures

How do you create a Plant in SAP?

Enterprise Structure➢ Definition ➢ Logistics General➢Define Plant

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 Define Plant

What is Storage Location in SAP

A storage location in SAP represents the location in the plant where the goods are stored.
The stock is maintained at this level. When the goods are received, the stock at the
storage location goes up in the quantity received, and when the goods are sold, the stock
at storage location is reduced according to the quantity delivered.

How do you create a Storage Location in SAP?

We can define the storage location using transaction code OX09 or using menu path or

IMG ➢ Enterprise Structure ➢ Definition ➢ Materials Management ➢ Maintain Storage

Location.

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 A storage location is always set up with respect to a plant, and
Allow for the differentiation of material stocks within a plant

Define Storage Location

What is Internal Organisational Units in SAP?

What is Sales office ?
Sales office

A sales office can be thought of as a subsidiary and is assigned to sales areas.we can
maintain various sales-related geographical locations of client organization as sales
offices. we can set up a sales office in SAP to represent a branch office or even a sales
territory.

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 Customization screen for defining a sales office by using transaction code OVX1 or by
following menu path IMG ➢ Enterprise Structure ➢Definition ➢ Sales And Distribution ➢
Maintain Sales Office. Once you are at the customization screen, click the New Entries
button to open the New Entries screen,

What is Sales group ?

Sales group

In this step, you define your business sales groups. The definition of sales groups is
optional.A sales group represents the staff who actually perform the sales activities. A
sales group represents the grouping of your sales staff. Sales groups are assigned to
sales offices. Generally, this grouping is based on areas of responsibility.

We can set up a sales group in the SAP system either by using the transaction code OVX4
or by following the menu path IMG ➢ Enterprise Structure ➢ Definition ➢ Sales And
Distribution ➢ Maintain Sales Group. Once you are at the customization screen,

What is Sales Person?

Sales Person

A person who is selling products or services is a salesperson.A salesperson belongs to a

sales group. Not directly assigned to other organizational units.

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 Sales area & Internal Organisational Units

Hope this article helps you enterprise structure in SAP SD, Here are a couple of other
articles that you check

ERP
SAP
SAP Material management
sap ariba procurement
sap fiori app library

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