SALES ORGANIZATION -COMPANY CODE

[Former Member]

Hello,

Why sap says that the thumb rule that the sales organisation should be kept minimum per company code. What is the significance behind this statement. Why cant we have more than 1 sales org assigned to company code.

[Former Member]

Hello,

Each sales organization is assigned one company code.

You can have more than one Sales organisation in one Company Code .

Each sales organization represents a "selling unit" in the legal sense. Its responsibilities include product liability and any claims to recourse that customers may make. It is also responsible for the sale and distribution of merchandise and negotiates sales price conditions. Sales organizations can be used to reflect regional subdivisions of the market, for example by states. A sales transaction is always processed entirely within one sales organization.

If there is one sales organization for the company code

The sales organization represents the company code Sales areas defined in the R/3 System are used to refine the structure of the external organization

Each sales area consists of the following R/3 organizational units (in any combination):

Sales Organizations

Division

Distribution channel

If there is more than one sales organization for the company code

Possible reasons for having more than one sales organization for each company code:

· Different legal responsibilities, for example product liability

· Unusual stipulations (for example legal), which make it necessary to distribute different product lines separately u2013 for example, products for medicine and veterinary medicine

· The desire to separate completely the sales activities of different enterprise areas

Separate distribution responsibilities, each with their own Marketing and Pricing policy u2013 for example, one for the domestic market and one for export

Overlapping customer and product master records or the desire to maintain customer and product master data in a specific, unusual way

· Overlapping responsibilities for order entry, or for sales and distribution processing (sales authorizations)

As generally said , our organisation structure in SAP should be simple to improve efficiency .

Hope it helps..

Thanks/Rajesh

[Former Member]

This message was moderated.

[jpfriends079]

KasiViswanath A wrote:
The main logic of keeping multiple sales organizations is, if the sales process of north region is entirely different from the south region then you can have multiple sale organization

There is no need to open older thread, which are been answered. If you have different point of view/understanding, then try to post that in your blog with an example by reference this thread.

In anticipation of an understanding.

Thanks.

[Former Member]

Hi,

It is because to keep the org structure to a minimum and not to complicate the sturcture as the sales orgs increases the number of sales areas increases.And it may be lot of complication to the enduser,who has to get acquinted with the system afterwards,so to avoid this SAP recommends to use minimum number of sales orgs to keep the org structure simple.

Regards,

Ramesh babu.

[Former Member]

The main significant reason is master data maintance:

1 single set of master data needs to be maintained by the number of sales organizations maintained.

So if you have 3 sales orgs with 1 Dis Channel and 1 Division each ..there will be total of 3 records for which master data has to be maintained.

Example: Take Sales Orgs 1000 / 2000 / 3000 each with dis channel 10 and division 10.

Number of Sales areas:

1000-10-10

2000-10-10

3000-10-10

Where with only 1 Sales Organization is maintained there will be only 1 record.

Second significance is business process. If the business process of 1 SO is COMPLETELY different from that of the other then only use more than 1.

[Former Member]

Hello Sreedhar,

can you give me an example of how the business process of one sales org be different from another .

Edited by: jagadisha14 on Feb 21, 2011 7:52 AM

[former_member1190345]

HI Jagdisha,

The logic of keeping the no. of sales organizations to be kept as low as possible is simple.

Consider that you r organization has 3 Sales organizations, 3 DC's and 3 Divisions. Then logically the no. of sales areas should be 3 X 3 X 3= 27

Now if you reduce the no. of sales Organizations to just 1 then the no. of Sales areas become 1X 3 X 3 = 9

Thanks and Regards,

J Nagesh

[Former Member]

Hello ,

Please see this link.

http://help.sap.com/saphelp_46c/helpdata/en/d3/4b4f85843b11d29c5c0000e8a51c6e/content.htm

http://help.sap.com/saphelp_46c/helpdata/en/dd/563596aea111d199b60000e8a5bd28/content.htm

venkataswamy.y

Edited by: yanamadala venkataswamy on Feb 21, 2011 1:17 PM

[Former Member]

Sales organisation is treated as the legal entity, therefore its recommended to have only 1 sales orgn assigned to one Company Code