When do we need two or more sales organization

[Former Member]

Hi Experts,

In our Enterprise Structure, what factors decide that we need two or more sales organisations. What business requirement makes the decesion of this, any examples may really help.

Increase of master data is fine but what is the actual reason behind having to restrict with simple org structure ??

Pre- Thanks

Denish

[Former Member · Accepted solution]

Hi,

You would need them if there is a specific

Business requirement,

Policies w.r.t pricing, payment terms and target customers/customer base

Product line and area of operations etc,

Regards

DSR

[Former Member]

Thanks for all your inputs !

Thanks JP !

[Former Member]

Thanks for all your inputs !

1) The evolution of sales policy (pricing, payment terms, target customer, etc ) can also be done in many different ways. How is the creation of sales organisation exactly helpful in this case ??

2) Hi JP,

If in one country (say india) the enterprise structure is divided region wise, like western region or eastern region, etc.. then is it meaningful in creating different sales organisations ??

Regards,

Denish Patel

[jpfriends079]

If in one country (say india) the enterprise structure is divided region wise, like western region or eastern region, etc.. then is it meaningful in creating different sales organisations ??

Use Sales Office for that.

Regards

JP

[jpfriends079]

I don't think you need more than one sales area for one country under one company code.

B'coz most of the things can be handled through or can be differentiated on the bases of Sales Area.

To add further, its just a virtual organisation entity without any legal boundness.

All sales related rule regulation for one country should be perferably under umberalla.

More that one sales org without a valid purpose will just add to complexity of the enterprise structure (simple the better)

So I don't is any specific requirement of having more than one sales organiation for one country under one company code.

Untill you need:

- reporting in more than one Statistics currency.

- different Sales organisation calendar

Regards

JP

One question for our fellow respondents:

Whether 
- pricing
- payment terms
- target customers/customer base
- Product line 
- area of operations 
is enhancing the sales org is the only alternative or will add to the complexity?

[eduardo_hinojosa]

Hi

You can use it as a filter to determince pricing procedures, pricing master data, output messages, reporting tools, etc...

For me, the most important is the organization structure of the company. If it has two sales managers, where you can have a different evolution in the sales policy (pricing, payment terms for customer, delivery time, etc...), in my opinion, the better way is create two sales organizations to avoid conflicts because you achieve to control this policies with standard tools without the need of use of enhancements or userexits.

I hope this helps you

Regards

Eduardo