Hello friends if you are looking for SAP SD Notes of Organization Structure then here you will find the details for it.
In SAP SD (Sales and Distribution), the organization structure defines how business processes are organized and executed within the sales and distribution module. It encompasses various elements that represent the organizational hierarchy, relationships, and responsibilities involved in sales and distribution activities.
Sales Organization
SAP SD (Sales and Distribution), a Sales Organization is a fundamental organizational unit that represents a distinct entity responsible for selling products or services to customers. It serves as the highest level of organizational structure within the sales and distribution module and plays a crucial role in defining and executing sales strategies, managing customer relationships, and driving revenue generation.
Sales Organization is an organizational unit that sells and distributes products,
negotiates terms of sale, and is responsible for sales transactions. The zonal nature of the
organization structure is mapped using sales organizations.
Distribution Channel
In SAP SD (Sales and Distribution), a Distribution Channel is a key organizational element that represents a specific sales and distribution channel through which products or services are marketed, sold, and delivered to customers. It plays a crucial role in defining the route through which goods or services reach the end customers and in determining the sales strategy and distribution approach.
A distribution channel is a channel through which materials or services reach to customers.
The following three Distribution Channels will be created for Project Charminar Investment
Steel Castings Limited.
Division
A division is a product group that can be defined for a wide ranging spectrum of products.
The above divisions have been created to indicate the Four main product groups in the
company. The following divisions will be created for Project Charminar steel casting Limited.
SALES OFFICES
In SAP SD (Sales and Distribution), Sales Offices are organizational units that represent physical or virtual locations where sales activities are conducted or managed. They serve as operational units responsible for coordinating sales efforts, managing customer relationships, and executing sales strategies within specific geographical regions or territories.
Sales office is defined as it is a physical location (for example, a branch office) that has
responsibility for the sale of certain products or services within a given geographical area.
The following Sales Offices will be created for Project Charminar Steel Casting Limited.
SALES GROUP
Sales Group is a group of sales people who are responsible for processing sales of certain
products or services. By using sales groups you can designate different areas of responsibility
within a sales office and also can be used for reporting purposes.
The following Sales Groups will be created for Project Charminar Steel Castings Limited
SHIPPING POINTS
The shipping point is the top level in the organization for shipping. 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.
The following Shipping Points will be created for Project Charminar Steel Castings Limited..
LOADING POINTS
The loading point is the top level in the organization for loading. Picking is always initiated
from exactly one loading point. Thus, all items of a picking belongs to one loading point.
Loading Points are assigned to Shipping Points.
The following loading Points will be created for Project Charminar Steel Castings Limited
The purpose of this is to allocate the company code so that it establishes a link between the
SD and FI systems. A sales organization belongs to just one company code
The purpose of this step is to allocate the distribution channel to Sales organization to find
out which distribution channel is responsible for the sale.. A distribution channel can be valid
for several sales organizations.
The purpose of this step is to allocate as many as division desired to a sales organization. Any
one division can belong to several sales organizations
Sales area is a combination of sales organization, distribution channel and division. The
following Sales Areas will be created for Project Charminar Steel Castings Ltd.
The purpose of this step is that you can allocate as many as desired . Any one sales office can
belong to several sales areas at the same time.
Assign sales groups to sales office
The purpose of this step is that you can assign as many as desired. Any one sales group can
belong to several sales offices.
Assign sales organization, distribution channel to plant
The purpose of this step is to assign any number of Distribution Channel to a combination of
Sales Organization and a plant.
Assign shipping points to plant
The purpose is to allocate as many shipping points as desired to the plants. Any one shipping
point can belong to several plants.
