why two sales organizations required?

[former_member417078]

Dear All,

A company has business in domestic as well as export domain.

Now there is a clear understanding that I require two different sales organization to cater to such situation, I am in a need to explain the company why do we need to have two different sales organization and why not one, as we can have export taken care by having a distribution channel?

Kindly do reply in detail explaining why I need to different sales organization and what implications company may have if they have it as distribution channel.

regards

[Former Member · Accepted solution]

Hello,

The Sales and Distribution (SD) Organization structure in SAP is meant to structure an organization according to its sales requirements. Organizational Management is used to set up a company's organizational marketing, sales and service structure. A sales organization is the highest organization level in SD. It defines the formal system of reporting mechanism between different organizational units in the organization.

Organizational Structure is not always constant and with the development of the company, relationships between different units once developed, is not permanent. It needs to be altered depending upon the environmental factors or a change in the corporate strategy of the organization. Thus taking these factors into consideration,

Say, today we propose them that instead of two sales org, they can work with one sales org and two different dist channels and later for in the domestics business they have to include one more reporting structure, it would be difficult. On the other hand, one should not propose too many Sales org as the master data for the set-up and maintain too many sales org would be very difficult.

This is where a consultant plays an imporatnt role in advicing their clients as to how they can structure their business.

Regards,

Gauravjit.

Reward points if the explaination is helpful

[former_member417078 · Accepted solution]

Hi Gauravjit,

But does having a export distribution channel going to help by taking care of current export business requirements.

regards

[Former Member · Accepted solution]

Kankan,

Basically, we define different sales org for the reporting purposes. We can have the distribution channel for the exports.

What are their other level like how they conduct their business, what are their product lines, etc.

Also...how are the plants being used. Are they same for both domestics and exports.

Are customers same for both the area...

How is the pricing being done...

One has to take into consideration a number of factors before coming to the conclusion that whether one needs either one sales org or more than that.

Regards,

Gauravjit.

Reward points if the answer is helpful

[Former Member]

You can meet the requirement through 1 Sales Organization for both Domestic & Exports. To identify Domestic & Export sales, you can have it at Distribution Channel Level.

Try to have only one Sales Organization, minimum Distribution Channel & minimum Division. The higher the number, thelarger the configuration Data & master data. Of course, we should ensure that in minimizing, we do not get away from basic focus of requirement.

Regards,

Rajesh Banka

Reward points if helpful.