sales organization vs. division

[cathy_liang]

Dear experts,

I've gone through the relevant thread. However, I still got some questions:

Customer just set up company & new business. They have unclear throughts about the business management. They have 2 sales departments to sell 2 different products.

Since those 2 different products are delivered from 2 different plants (in SAP), it seems ok to define sales organization based on products or define division based on products.

Q1: In view of SAP system, any critical factors need to be considered except master data maintenance? Appreciate your experience sharing?

It's said that a sales organization cannot share any master data with other sales organizations.

Q2: If using the same number range, can I have the same customer number or same material number for different sales organizations?

[jignesh_mehta3 · Accepted solution]

Hello Cathy,

To keep it simple, I would suggest creating different Sales Organisations only when your Business Process in selling Products is entirely different. E.g. Domestic Sales & Export Sales or Local Sales & Institutional Sales or Retail Sales & Direct Sales...

But in your case you are going to sell two different Products from different plants. Here i would suggest to go for different Division. e.g. Television & Microwave Ovens.

Creating Different Division for Products will help you in maintaining all the seperate master data, Pricing & other data...

Q1: Critical factors that needs to be considered are:

1. Master Data maintenance

2. Account Postings (are the Revenue Account for both Product groups same or different)

3. Pricing, Condition Records & Tax condition records maintenance. etc..

Q2: Customer Numbers & Material Numbers are assigned at Client Level.

Thus you can have same Customer number for a Customer accross Sales Organisation & Company Codes. Similarly for Material Code, you can have same Material Numberfor a Product accross Purchasing organisations & Company Codes.

Hope this helps...

Thanks,

Jignesh mehta

[Former Member]

Hi,

this is to inform you that,

Since those 2 different products are delivered from 2 different plants (in SAP), it seems ok to define sales organization based on products or define division based on products - you can have two divisions for this.

Q1: In view of SAP system, any critical factors need to be considered except master data maintenance? Appreciate your experience sharing?

It's said that a sales organization cannot share any master data with other sales organizations.

then you create own master data basing on sales organisations. that means sales organisation one should not share the master data of ssales organisation 2.

Q2: If using the same number range, can I have the same customer number or same material number for different sales organizations?

q2.a.you can divide all number ranges if you want because you are dealing with two different products and they are not similar.

in your case master data doubles that's nothing more than that.

hint:

what ever you do please think from reporting perspective and do it.

this clears your issue.

regards,

balajai

[cathy_liang]

Dear balajai,

So, you prefer using 2 division instead of 2 sales organizations, right?

For Q2, how about using the same customer number for different sales organizations? You know, one customer may buy those 2 different products.

Besides, one customer already exists in another company code. If this customer also buys the above products, how to deal with its customer number?

Considering the reports in SD, it seems ok to define sales organizations based on products or define division based on products. You know, many reports can run based on sales organizations or division, like VA05N, VF05N. So, I wonder any ciritical factors about sales organization or division definition for this case. You know, customer has ambiguous ideas about the business management.

[Former Member]

hi cathy,

this is to inform you that,

please thiink about future expansion of business and reporting perspective.

if you ask me i will go for 2 divisions

For Q2, how about using the same customer number for different sales organizations? You know, one customer may buy those 2 different products.

Besides, one customer already exists in another company code. If this customer also buys the above products, how to deal with its customer number?

there are two ways for it.

please extend the same customer to two divisons.

or

maintain common division that is '00'. but it will a problem in viewing report divison wise

regards,

balajia