Sale org. -dist channel - plant

[Former Member]

Hi,

I have a question which has not been answered to my satisfaction in many forums.

"what is the role of a distribution channel when we assign a plant to a sales organisation? I understand that it would facilitate the distribution through plant directly, but is there any other purpose?"

Your response is most appreciated.

Warm regards,

Sarat

Edited by: saratvamsi on Dec 27, 2010 8:01 PM

[lakshmikanthc2 · Accepted solution]

Hi,

This is called Sales Line, it plays major role in intercompany sales process. And it will show impact on customer and material master data.

Based on this setup, the system will populate the required country specific tax classifications in customer and material master sales views.

Regards,

Lakshmikanth

[riyaz_syed]

Hi,

During customer master data creation, every customer is associated to sales area which is a combination of sales org.distribution channel and division.This is because when a customer places a sales order, company can have a clear picture that for which sales organization the customer belongs and through which distribution channnel the material has to be supplied and what is the division that material belongs.

A plant is assigned to sales org and distribution channel, because materials has to be supplied from the plants.A plant may also have stocks of materials which can be distributed through other channels.

To be more precise, plant is a place where you store the stock or manufacture the material.

During pricing procedure determination we assign each sales area to the pricing procedure, where we can customize prices based on different sales area combination.

For eg: A material can be sold to one customer with a different price through whole sale distribution channel and the same materrial can be sold to another customer with different price through retail distribution channel.

Hope this clears your doubt regarding role of distribution channel.

[Former Member]

Hi Sarat,

The disrtibution channel is the organizational element through which the materails and services reach the customers.In some specific industries like Pharmaceuticals,electronics,fmcgs etc,the stocks cannot be directly delivered to the customer from the plant.The companies has their C&F agents which is in other words called a dist.channel,the stock will be transformed from plant to the C&F,from there the goods will be catered to the Customers.

I hope this may be of some help to you.I may be wrong also,pls correct if i am.

Regards,

Ramesh.

[Former Member]

Hi All,

Thanks so much. Your time and effort is much appreciated.

Warm regards,

Sarat

[Former Member]

Hi,

Any more responses are much appreciated.

Warm regards,

Sarat

[Former Member]

Hi,

it can be used in STO process while you creating intrenal customer the distribution channel and delivery plant need to assign to that channel

Regaeds

Dev

[Former Member]

To illustrate purpose of Distribution channel in layman concept,

if we consider Sales Org. as Maruti, then Distribution channel can be various models of Maruti e.g. Swift and Division would be its variants e.g.Swift LDI and VDI

[deepak_dave2]

Hi,

To answer your question ditribution channel and sales org are assigned in customising to the plant to make a distribution chain .

We cannot supply the material manufatured inn the plant otherwise.

To facilitate that , all materials are extended in tcode MM01 to the delivering chain: sales org - distrib channel-delivering plant for using it in a transcation r sales order OR for eg.

Apart from that i have not come across any other use of assignment but completing the didtribution chain.

Regards

Deepak

[Former Member]

hi sarat,

this question should be asked in this manner:

generally plant will be assigned to sales organisation and distribution channel only.

this is called sales line.

as you all know that distribution channel is the channel through which the goods reach teh ultimate or end customer.

this distribution channel is plant here thier relation ship is many to many.

that means one plant can have 'n' number of disctibution channels assignment & one distribution channel can have 'n' number of plants assignments.

in turn plant will be assigned directly to company code.

so even an intercompany billing is also possible here with this assignment.

hope this clears your issue

balajia

[Former Member]

Hi,

The very purpose of the distribution channel is to restrict or stream line the distribution of the products. Let us consider you have 2 different distribution channels, say XX u2013 Tele Sales, YY u2013 Retail Sale. You want to deliver all the goods meant for telesales from plant PL01; all the goods meant for retail sales from plant PL02. In this case, if your sales organization is 1000, you can assign the plants in OVX6 as given below. 1000 / XX u2013 PL01, 1000 / YY u2013 PL02.

The idea of sales area is also meant for streamlining the process. We are not selling all products to all customers. We are restricting certain products to certain customers by sales area. So, the customer, material and sales documents are created with respect to the sales area.

Regards,

K Bharathi

Edited by: K Bharathi on Dec 28, 2010 6:18 AM

[Lakshmipathi]

Your question itself is wrong. We assign a plant for the combination of sales organisation and distribution channel only in OVX6, which is applicable for both customer and material.

thanks

G. Lakshmipathi

[Former Member]

Hi,

I appreciate the time and effort you have all taken to get my query resolved. Thanks for the same.

However, I believe my question was not clear from the responses i got, I would like to elaborate so that I might get better responses this time.

First, I perfectly understand the definitions of sales org., dist channel, plant, in SAP and even physically. I also understand we cant assign a plant to a sales organisation without assigning a distribution channel as a link.

Now my question is (this time Im putting it the other way round) "why cant we assign a plant to a sales organisation without involving a distribution channel?" I know SAP doesnt allow the same. But, my question is "why is it mandatory to have a distribution channel involved in the assignment?"

Thanks in Advance.

Warm regards,

Saratvamsi.

[Former Member]

hi sarat,

suppose for some time we will think like you.

and SAP has not given distribution channel in between plant and sales organisation.

from where the sales organisation will deliver the goods. means through which route it delivers.

like wise the plant also.

so D/C here is an link between the Sales Organisation and Plant.

Sale org. -dist channel - plant - this normally used for STO processess.

balajia

[Former Member]

Hi,

As far as plant is concerned it is an outside entity of SD. Dont you think it is the discretion of the sales organisation to decide through which it needs to distribute the products? Why should a plant know through which distribution channel are its products being sold? By assigning a plant to a sale org. through a distribution channel, are we not restricting our distribution to a limited channels?

Your reply is most appreciated.

Warm regards,

Sarat

[Shiva_Ram]

Think it on the other way round. If there are multiple plants, for example 500 plants, and if the company wants to differentiate between the plants, meaning only certain products should be sold through (delivered through) certain plants, then if you assign at sales org level, how can you differentiate?

You need to always think with all possible scenarios, and you can't confine yourself with only limited scenarios.

Regards,

[Former Member]

Hi,

Thanks for your response.

Why cant we and how cant we differentiate? What has got the plant to do with it? It about the distribution channel. Isnt it?

Warm regards,

Sarat

Edited by: saratvamsi on Dec 28, 2010 9:55 PM

[Former Member]

hello,

i guess it was possible to assign delivery Plant to S org directly but having distribution channel in between provide another layer of information maintenance . For example we create material master for sales org and Dis channel NOT sales org alone.

This way we have additional capability to maintain data in material master specific to Sales Org/Dis channel. And Delivery plant and Taxability for example is assigned /defined their as well.

So this provide additional layer of information and flexibility for business users. And also additional layer of restriction if certain plant can deliver for Sales Org / Dis Channel combination or not rather then sales org alone.

Thx

Dilip Sadh

[deepak_dave2]

Hi Sarat,

The reason Plant is assigned to combination of sales org and dist channel is because it can differentiate the distribution chain accordingly.

Meaning Plant can deliver thru the sales org and retail - 10, service- 12 which are the distribution channels.

Which will differentiate physically like a retail channel can only ditribute in plant 1and in the plant 2 for all channels.

And also it differentiates in the master data accordingly like Material Master data Tax Classifications for eg.

Glad to help.

Regards

Deepak

[Former Member]

hi sarat,

here plant supports:

inventory

production

sales

as a ware house.

it is a discretion of sales organisation to decide from which D/C you have to supply the goods but it is equally important to inform the plant also because D/C is the link here.

plant should know because plant also involves in sales activity and it is interlinked with sales activities.

By assigning a plant to a sale org. through a distribution channel, are we not restricting our distribution to a limited channels - that is where we have to follow the logic on enterprise structure.

the minimum the enterprise structure the minimum is the risk of creating master data and every thing is dependent on the master data as you also know this.

balajia

[Former Member]

Hi Lakshmipathi, is it possible to add a plant in the combination Sales organization - Distribution Channel?

[Shiva_Ram]

There is basic difference between plant and distribution channel.

Plant is a place where materials are produced or goods/services are provided. Distribution channel is a means through which materials or services reach the customer.

Distribution channels are used in order to define responsibilities of the sales process. Also in order to develop flexible pricing you need distribution channel. Check in SAP system where in some pricing conditions master records are created at Sales org/distribution level. Distribution channel is also used for differentiating sales statistics and reporting.

Regards,

[Former Member]

hi sarat

this is called sales line.

as you all know that distribution channel is the channel through which the goods reach teh ultimate or end customer.

this distribution channel is plant here thier relation ship is many to many.

that means one plant can have 'n' number of disctibution channels assignment & one distribution channel can have 'n' number of plants assignments.

in turn plant will be assigned directly to company code.

so even an intercompany billing is also possible here with this assignment.

hope this clears your issue

balajia

[Former Member]

Sarat,

This is quite interesting question. Distribution channel represent "HOW" product reaches to customer for example Retail, Wholesales, Internet etc. By Assigning we are allowing which Salesorg and Distribution channel options are allowed for a plant.

Remember MATERIAL master records are created for Plant, Sales Org and Dis channel as well.

thx

Dilip Sadh