Unit 13

Sales and Distribution (SD)

- Organizational Structures -

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 Sales and Distribution (SD)

Business Process Integration

Org Data

SD

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 SAP Enterprise System

Organizational Data
• A hierarchy in which the organizational units in an
enterprise are arranged according to tasks and
functions
• Are static data and are rarely changed
– Once you have decided on an organizational structure it is not easy
to change it
• The definition of organization units is a
fundamental step, it is a critical factor in how the
company will be structured
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 Sales and Distribution (SD)

SD FI
Sales and Financial
Distribution Accounting
MM CO
Materials Mgmt. Controlling
PP
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Service
Mgmt.
Client / Server Enterprise
QM Integrated Business PS
Controlling
Quality
Project
Mgmt.
PM Solution WF System
Plant Maintenance Workflow
HR IS
Human Industry
Resources Solutions

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 Sales and Distribution (SD)

Components of Sales and Distribution

Shipping
Transport
Sales
Sales
Information
Support
Sales and System
Master
Distribution Data
Billing
(SD) Foreign
Sales
Trade
Credit
Mgmt.

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 Sales and Distribution (SD)

Sales Organization
• Sales Organization
– Sells and distributes products
– Negotiates terms of sales
– Responsible for these business transactions
• Critical organization element to the
definition of business markets
• A sales transaction is linked to only one
Sales Organization
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 Features of Sales Organization

• Legally, a sales organization is included in exactly one

company code .
• You can assign one or more plants to one sales organization.
• The sales organization has an address.
• Within a sales organization, you can define your own master
data. This allows a sales organization to have its own
customer and material master data as well as its own
conditions and pricing.
• You can define your own sales document types within a sales
organization.
• You assign sales offices and your own employees to a sales
organization.
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 Features of Sales Organization contd…
• All items in a sales & distribution document, that is, all items of an
order, delivery or a billing document belong to a sales organization.
• A sales organization is the highest summation level (after the
organizational unit Client) for sales statistics with their own statistics
currency.
• The sales organization is used as a selection criterion for the lists of sales
documents and for the delivery and billing due list.
• For each sales organization, you can determine the printer for output
differently based on sales and billing documents.
• A sales organization cannot share any master data with other sales
organizations. The master data must be created separately. The data for a
distribution channel or a division can, however, be created for several
distribution channels or divisions.

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 Sales and Distribution (SD)

Sales Organization
(continued)
US Sales
S000

The upper most level is the sales organization

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 Sales and Distribution (SD)

Distribution Channel
• Identifies how products and services reach the customer
and can be assigned to one or more Sales Organizations
• You allocate a distribution channel to one or more sales
organizations.
• You allocate one or more plants to a distribution channel.
• Within a distribution channel, you can define your own
master data for customers or materials as well as your own
conditions and pricing.
• You can create master data for a representative distribution
channel which is then also used in other distribution
channels. To do this, you have to additionally create the
allocation of the representative distribution channel to the
other distribution channels.

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 Sales and Distribution (SD)

Distribution Channel
• For a distribution channel, you can determine your own sales
document types.
• You can determine sales offices for a distribution channel.
• All items of a sales document belong to a distribution channel.
The entire sales document is therefore entered for a distribution
channel.
• The items of a delivery can belong to different distribution
channels.
• All items of a billing document belong to a distribution
channel.
• The distribution channel can be used as a selection criterion in
lists.

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 Sales and Distribution (SD)

Distribution Channel
(continued)
•You can determine the printer destination for messages
differently for every distribution channel on the basis of the sales
and billing documents.
•A distribution channel does not fulfill the following criteria:
•A distribution channel does not have its own address.
•You cannot allocate your own employees to a distribution
channel.
US Sales
S000

Wholesale Dist Retail Dist

Channel (WH) Channel (RE)
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 Sales and Distribution (SD)

Division
• Often used to define product line distribution
• Organization level to which customer specific information and
requirements are maintained (e.g. pricing, partial delivery)
• Assigned to one or more Sales Organizations
• A division is an organizational unit based on responsibility for
sales or profits from saleable materials or services.
• Divisions have two main applications: They are organizational
units for Sales and Distribution, and they are necessary for
business area account assignment for logistics transactions in
Financial Accounting. Divisions can be used to describe specific
product groups and can form the basis for sales statistics

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 Sales and Distribution (SD)

Division
(continued)
US Sales
S000

Medical Chemical
Division Division

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 Sales and Distribution (SD)

Sales Area
• Sales Area comprised of:
– Sales Organization
– Distribution Channel
– Division
• Will be used to link together the organizational
aspects of sales to customers
• Used for statistical analysis
• Customer can exist in more than one sales area.

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 Sales and Distribution (SD)

Sales Area
(continued)
US Sales
S000

Wholesale Dist Retail Dist

Channel (WH) Channel (RE)

Medical Chemical Medical Chemical

Division Division Division Division

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 Sales and Distribution (SD)

Sales Area
(continued)
US Sales
S000

Wholesale Dist Retail Dist

Channel (WH) Channel (RE)

Chemical
Medical Chemical Medical
Division
Division Division Division

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 Sales and Distribution (SD)

Internal Sales Organization

• Typically defines a territory or market
• Linked to one or more Sales Areas
• Optional organization structure

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Sales and Distribution (SD)

Sales Office
US Sales
S000

Eastern Western
Sales Sales

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 Sales and Distribution (SD)

Sales Group
• Sales Group
– Sub-division of a sales office, territory or market

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 Sales and Distribution (SD) Integration

Sales Person
• Sales Person
– Defined in Human Resources (HR) — Personnel
Admin.
– Specifically defines an individual rather than a position
(sales rep.) in sales processing

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 Sales and Distribution (SD)

Internal Sales Organization

US Sales

Eastern Western
Sales Sales

Northeast Southeast Northwest Southwest

Sales Group Sales Group Sales Group Sales Group

Salesperson Salesperson Salesperson Salesperson

1 3 9 11

Salesperson Salesperson Salesperson Salesperson

2 4 10 12

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 Sales and Distribution (SD)

Shipping and Loading Points

• Shipping Point
– Location that performs all delivery related activities
– Assigned a factory calendar
– A delivery can be processed from only one shipping
point
• Loading Point
– A subdivision of the shipping point used for more
specialized handling

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 Sales and Distribution (SD)

Features of Shipping & Loading Points

• They usually exist physically in a plant
• Each line item on an order is assigned to an order
• The shipping point is the top level in the organization for
shipping.
• A shipping point can be allocated to several plants.
• A shipping point can be divided into several loading points.
• A delivery is always initiated from exactly one shipping point.
Thus, all items of a delivery belong to one shipping point. Groups
of deliveries also belong to exactly one shipping point.
• You can influence delivery scheduling via allocation to departure
zones.
• The shipping point can be proposed automatically during order
processing depending on the plant, loading group and shipping
condition.

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 Sales and Distribution (SD)

Features of Shipping & Loading Points contd…

• A shipping point has an address.
• The shipping point is used as a selection criterion for lists of deliveries and
the work list deliveries.
• The shipping point is used as a selection criterion for processing deliveries
like printing, picking or goods issue.
• You can determine the printer destination for messages differently for every
shipping point on account of shipping documents.
• In this step, you define the loading points for your company. The definition of
loading points is optional, you can still use the SD system without defining
loading points.
• A loading point has the following characteristics:
• A loading point is a subdivision of a shipping point.
• The loading point can be entered manually in the delivery header.

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 Sales and Distribution (SD)

Shipping Organization
Vermillion
Plant P001

Freight Dock Express Dock Rail Dock

FD001 EX001 RD001

Loading Loading Loading Loading

Point 1 Point 2 Point 3 Point 4

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 Sales and Distribution (SD)

Unit 13, Group 1

Exercises
114. Create Sales Organization
115. Assign Sales Organization to Company
Code
116. Define Distribution Channels
117. Assign Distribution Channels to Sales
Organization
118. Define Division
119. Assign Division to Sales Organization
120. Setup Sales Areas

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 Sales and Distribution (SD)

Unit 13, Group 2

Exercises
121. Define Loading Groups
122. Create Shipping Point
123. Assign Plant to Sales Organization
and Distribution Channel
124. Assign Shipping Points to Plant

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