division

[cathy_liang]

Hi experts,

Is it proper to define 3 divisions (finished product group, semifinished product group, raw material group) for the scenario below? Any impact on other modules for such definition?

Pls help. Many thanks.

Scenario:

The customer has A, B, C department. A sells finished product, semifinished product, & raw material to domestic market. B sells finished product to foreign market while semifinished product to both markets. C sells semifinished product to domestic market while raw material to both markets.

As fnished product & semifinished product are different in different markets, material numbers are different in SAP accordingly.

Considering the customer need fine management, 3 sales organizations for A, B, C are defined in SAP.

[Former Member · Accepted solution]

hai,

What you have planned is absolutely fine as you will get a proper reports according to the divisions, so carry on with the creation

Regards,

Sudhir

[Former Member]

Hi,

As per you explanation, You have 3 sales organization [A,B,C], 2 distribution channels [X,Y] and 3 divisions [FERT, HALB, ROH].

If you allow all 3 sales organizations to deal with all three products through 2 divisions the total sales area will be 3x2x3 = 18. But you have precisely explained the function of each sales org.

So, the final sales area will be like this for your requirement: A/X/FERT, A/X/HALB,A/X/ROH, B/X/FERT,B/X/HALB, B/Y/HALB, C/X/HALB, C/X/ROH, C/Y/ROH. (ONLY 9 SALES AREAS)

Distribution channels and divisions will not affect other modules; these are mainly created for reporting purposes.

Regards,

K Bharathi

[cathy_liang]

Fist of all, many thanks for all your valuable advice.

I'd like to discuss further about division if defining 3 sales organizations. Here're more details. This customer belongs to mobile phone industry. In SAP, sales organization B combines another D department's business. D department sells semifinished product & raw material to both markets.

The purpose to define those 3 divisions is to specify their business. U know, C & D department cannot sell finished product. B department doesn't sell raw material. Moreover, the customer requests to post to different G/L accounts if some semifinished products are sold by different departments.

My question is whether to define those 3 divisions or one common division. Pls advise. Thanks advance.

[cathy_liang]

Any response?

[Former Member]

Hi,

Yes, As the DIVISION clearly specifies a PRODUCT LINE in SAP, you can configure 3 separate divisions for your each product group

Instead of creating 3 Sales organisations , create 3 distribtion channels for your three sales like domestic, sales, Foreign sales.

So that the Number of Sales areas will be less depending only on Distribution channel and division

so with only one sales organisation you can have three divisions and 3 distribtion channels

try this and revert back if you nee more details

regrds,

santosh

[Lakshmipathi]

Irrespective of material type, you can distinguish through distribution channels like domestic and export and further you can differentiate these categories by sales office. I dont think for the scenario what you had narrated, having different divisions is recommended.

In fact, division in SAP will always conveys the nature of the product. For example, Hindustan Lever are manufacturing many varieties like tooth paste, soap etc., and you can have these as divisions and not the one you had indicated.

thanks

G. Lakshmipathi

[Former Member]

Hi,

As per standard norms, in SAP we should create minimum number of sales areas as possible. Beacuse it may require master records to be maintained at each sales org/dist channel/division level. So please try use the other options like sales office or sales group for each deaprrtment, if it meets your requirement.

-Satya