sales org

[cathy_liang]

Hi experts,

If 2 sales departments handle the same orders (i.e. same distribution channel, same division, same pricing procedure), what's the best solution to customize sales structure in the system? Any points I need to pay attention to, e.g. impact on FI?

U know, if setting the departments as 2 sales orgs, no difference is between them except for the descriptions of sales orgs.

If setting them as sales offices, it's hard to run relevant reports based on the 3rd level as they have 3 levels of administration structures.

Pls advise. Thx.

[former_member550050 · Accepted solution]

Hi

First you need to understand the real meaning of sales organization and its responsibilities and controls

It is the organizationals choice to have as many as sales orgs they want

Say a corporate company operating in India or china (your nationality) can go ahead with only one sales org for carrying out entire sales activities or can go with 4 sales organizations say north , south,east and west or even more if they wish so

but to keep minimum is ideal

All master datas like VOR1 and VOR2 settings are defined for or under a single sales organization

Sales organization is responsible for selling goods,carrying out sales strategies etc

India or china being vast countries with so much cultural differences and if you have single sales organization the strategies will not work everywhere

So it is ideal to have more so that better planning can be done depending on the region

As per standard SAP definitions

sales organization is an organizational unit in logistics which groups the enterprise according to the requirements of sales and distribution

sales organization is responsible for distributing goods and services and also liable for product liability and responsible for the customer's right of recourse

sales organization is also used to take for example a regional,national or international subdivision of the market into account

A sales organization is uniquely asssigned to a company code

You can maintain your own master data for a sales org

In sales statistics sales organization is the highest summation level

All items in a SD document say in order or delivery or bill they belong to a sales org

Sales organization having so much controls and functions how can you compare the same with Sales office which SAP itself has made as optional

If 2 sales departments handle the same orders (i.e. same distribution channel, same division, same pricing procedure), what's the best solution to customize sales structure in the system? Any points I need to pay attention to, e.g. impact on FI?

What do you mean by this statement?

Regards

Raja

[cathy_liang · Accepted solution]

Hi Raja,

Let's say A company has depart. B & C. Depart. B has office B1, B2, etc. Office B1 has team B11, B12, ect. Team B11 has group B111, B112, etc. So does depart. C. Those 2 departments handle orders in the same way & sell the same products.

For SD, FICO, etc, any risk or impact I should foresee for the customizations below? Or, any other best solutions?

Customization 1: configure depart. B & C as 2 sales orgs, B1 as sales office, B11 + B111 as sales group, etc.

Customization 2: configure one sales org named A1, B & C as 2 sales offices, etc.

[cathy_liang · Accepted solution]

Any thoughts?

[Former Member · Accepted solution]

Hi Cathy,

As much as possible, consider limiting the number of Sales Org assigned to a company to minimum. Sales Org being the highest organizational unit in SD will mean more master data to maintain if you have multiple. Most of the configurations in SD are using Sales Org, so it could be another areas that you need to consider, not mentioning the customer-defined rules with Sales Org as one of the objects.

If your concern is mostly on reporting side, you can always use hierarchies to represent the levels you mentioned. In your case, since these 2 departments are selling the same products, I assume you can anchor your hierarchy based on customers. Both Sales Information System (SIS) and BIW support this method.

Let me know if this helps.

Arnel Adordionicio

[former_member550050 · Accepted solution]

Dear Cathy

According to the scenario described by you according to me best way to map is the option one written by you

That is one company code as A and two sales orgs as B and C and necessary settings from there on

But again this depends on lot of analysis of the existing scenario and forming a org structure is dependent on lot of factors

As you know that Sales org is the highest organizational unit in SD and all master datas are defined for a single sales org like your VOR1 and VOR2 settings keeping the no of organizational units as minimum is ideal for better master data maintanance

Instead of 20 sales orgs under one company code if you can map it to 15 or 12 then that is best

But having 2 sales orgs instead of one doesnt impact the system performance much

Again forming org structure depends on no of factors and there is nothing like ideal org structure in SAP

According to me i will go will option one for the scenario said by you and some other friend might say option 2 is the best and he may be right in his own terms

Sorry for taking a little bit of time in replying to your second post as i want to study your post and then draft the reply

Regards

Raja

[Former Member · Accepted solution]

Dear Cathy,

I might be cross-questioning, I am Sorry for this, but as per your first post:

If 2 sales departments handle the same orders (i.e. same distribution channel, same division, same pricing procedure), what's the best solution to customize sales structure in the system?

and, also in second post:

Let's say A company has depart. B & C. Depart. B has office B1, B2, etc. Office B1 has team B11, B12, ect. Team B11 has group B111, B112, etc. So does depart. C. Those 2 departments handle orders in the same way & sell the same products.

Specially this line:

Those 2 departments handle orders in the same way & sell the same products

I am just trying to understand, what is the need of maintaining 2 Sales Org? I mean, the basic purpose of maintain 2 Sales Org and other related Org.-elements?

Once, it would be clear to all of us, a better work-aound could be provided.

Best Regards,

Amit

[cathy_liang · Accepted solution]

Dear Raja, Amit,

First of all, many many thx for your valuable advice.

The basic purpose is to summarize/analyse sales based on every level of customer's business organizations.

In the system's veiw, those two departments B & C can be considered as one sales org. In the customer's view, they want to map their every level of buisness organizations in the system to achieve the purpose mentioned above.

Another factor I have not mentioned is the business organizations of the customer's subsidiary company are included in B & C. In other words, sales orders belong to B / C, no matter where they are handled. Now the parent company rolls out the system only.

Currently, my key solution is to define one sales org against B & C while B & C as sales offices.

Very sorry for the misunderstanding caused.