Spare parts coming under division or dis.channel

[Former Member]

Hi friends,

      i need your help , i  like to know spare parts coming under division or dis.channel.

      because ,

      spare parts sales is also one type of sales like ( dealer sales, internet sales) ,so why shell i create spare parts as a dis.channel .

      kindly advice on this sales area ( XXX-Spare parts Dis.channel- Spare parts division).

Thanks in advance

[Lakshmipathi · Accepted solution]

In After market sales, these types of sales would come into picture and its all depends on how your client wants their sales report.  If your client are doing the spare parts sales on huge volume and they need all financial reports separately to have a track record, then you can have a separate Division for this.  Of course, you need to go with new pricing procedure in case, your client wants a separate financial postings.  On the other hand, if the volume of sales is only minimal, then I would recommend not to go for any new configuration.  Manage with the existing set up itself.

G. Lakshmipathi

[former_member182378 · Accepted solution]

G Lakshmipathi,

I appreciate you giving us some business related perspective! Thank you!

The OP's question is whether to create a Division or a distribution channel.

Furthermore, depending upon settings; new pricing procedure is not mandatory, if new division is created.

The new division could be at item level in the sales order.

Also, for separate financial postings, configuration of new pricing procedure is not mandatory.

Financial postings can be accomplished with Material account assignment group. (among many other alternatives).

[Lakshmipathi · Accepted solution]

TW Typewriter

The OP's question is whether to create a Division or a distribution channel

I have already answered to this to go with a Division

On your comments

new pricing procedure is not mandatory

Hope you would have gone through my below comments

and they need all financial reports separately to have a track record,

Finally, coming to your another query

Financial postings can be accomplished with Material account assignment group

What will happen if same material goes to different market like Spare parts section, regular sales etc.,  You are not suppose to change the master data quite frequently and that is why, I proposed to go with a new pricing procedure.  Of course, the OP has given only a brief requirement and with some assumptions, I gave the suggestion. 

G. Lakshmipathi

[satishmoudgil]

Hello,

Same scenario i have faced map it  thru distribution channel.

Thanks

[Former Member]

Thanks to all , for you are swift response.

[former_member185462]

Arul,

When you have separate division means you can sell spare parts through any distribution channel ,choice is open.

When separate distribution channel means,you may exclusively sell only spare parts through this channel.Also as said earlier by Mr Lakshmipathi you can have a choice of having separate pricing procedure,which may offer special discounts also.

Pradeep

[former_member185462]

Mr Arul,

As said by Mr Lakshmipathi & others you may have it as a separate division and as a separate channel in order to track records.

Hope you are satisfactory with earlier comments.I request you to close the same.

Pradeep

[former_member182378]

arul,

An important question is what are the business requirements behind asking this question (division or distribution channel).

Does the client want some specific reports, or any other functionalities (output etc.)?

[Former Member]

what are the impact & benefit behind this sales area ( XXX - SP dis- SP div )  , i will plan to implement this scenario in our client future.

[former_member182378]

arul,

With a new division (for spare parts) you can create a new sales area. With this new sales area many things are possible.

There is no need to create both division and distribution channel. (for spare parts)

It is advised to create as less organization elements as possible because configuration, data maintenance etc. go exponentially up, with the creation of new organization elements.

[siva_vasireddy2]

Hi,

As specified by the members spare parts is one of the product line which is a Division but you can map the spare parts sale in the system with seperate Distribition channel for Easy Idenetification and analysis.

[former_member182378]

Siva,

Interesting post! Thanks!

Added: You talk about the benefits (or reasons) to create spare parts as a distribution channel.

What are the extra benefits if new distribution channel is created in comparison to division?

As I had requested earlier to the OP - to explain

spare parts sales is also one type of sales like ( dealer sales, internet sales)

and the business objective(s) with regards to Spare parts.

Input for these two points, can be helpful for us to give suggestions.

Message was edited by: TW Typewriter - added in blue color

[former_member186385]

Hi,

Spare parts order Functionality is used widely in SAP CS

In Customer service, based on the customer complaint a Notification is created which will have a service order to record kind of service (inhouse or field).

In case of Field service, your technician will go a service the material/Equipment at customer location, in that case you will just enter Technician work hours and any components required for service. These components referred as Spare parts in service scenario and you have to create a spare part order to Deliver the part to customer

There is also a scenario where customer requests only a spare parts , then from the notification you can create a spare part order

You can also create Spare part as stand alone , but to differentiate with Standard Sales order with respect to service scenario a special order type is used

hope it is clear

regards,

santosh

[former_member182378]

santosh,

I like your post! It gives an (overview) idea of things work in SAP CS.

But the OP's question is - Spare parts is a division or a distribution channel?

[former_member182378]

arul,

From my understanding spare parts is a division. (and not a distribution channel)

spare parts sales is also one type of sales like ( dealer sales, internet sales) 

Explanation for a distribution channel like internet sales -

Via internet your company can sell any material. Thus internet is a way of selling, i.e. Distribution channel.

So please explain your comment: spare parts is like internet sales