SD Org structure | Verticals - Distribution channels or Sales office

[Former Member]

Hi All,

We are doing a rollout for a "Payment" gateway service provider and as part of the enterprise structure mapping I learnt that the client has several verticals (close to 15) these verticals are the areas they provide service to clients and earn their revenue.

My question, should I create these verticals (ecommerce, ewallets, merchants, offline revenue) etc., to Distribution channels or to Sales offices? The reason I ask is... for the earlier implementation and subsequent rollouts they've not created these many DCs they are using only one or two DCs and mapped all these verticals (sources of revenues) to Sales offices.

2. Do we have a best practise / checklist as to which business process/ or org unit should be mapped to Sales Org, Distribution Channel/Division or Sales office.

3. Do we have members in this group, who have done an implementation for a payment gateway. I would need his/her guidance.

Thanks in advance.

[Former Member]

Thank you, all for your opinions. We are evaluating all the Pro's and Con's and would arrive at a decision. I wanted to double check my thinking with your opinions.

Thanks once again.

[former_member184771]

Hi,

Option of sales office is good.

But why not option of creating division, reason why I m proposing this because the Payment gateway is a kind of service as can be treated as product line. There will be complication of maintenance of master data and all but that can be taken care care by referencing I believe.

This is one option that can be looked on.

Thanks.

SS

[Former Member]

My suggestion is go with Sales office since this is involve less config that creating DC, also you are trying to map the service provider so appropriate is sales office this is how we have mapped at our org

Thanks

[former_member182378]

SAP,

As you said, it would be helpful to get some suggestions from someone who has implemented this kind of business (payment gate way). Definitely creating more distribution channels is a strong NO.

I am not sure if you should create sales offices for these verticals.

Keep in mind that sales office is not at item level of sales order.

On one hand, in the previous implementation, they have used sales offices for verticals. And now, it might give you some wins (or lessen the complications, rework etc.) if you go with the same design for the rollouts.

On the other hand, understand the end to end business, do you have products to sells? do you need to keep track how much sale has happened in which vertical etc. Then you might get some answers.

In the retail business, we used plants as the units were customers came and purchased the goods. plants were setup as retail stores.

TW

[Former Member]

Hi,

You are right in assigning to the Sales Office for the various sources of revenue, as DC is limited.

It all depends on the business requirement - like how do they want their reporting. Meaning, at which level of the org unit they want their reporting.

In out project, (though not a payment gateway service provider, ) we have done the same in using the Sales Office.

Regards

[former_member182378]

Venugopal,

I agree with you, having clear understanding of how you want to setup SAP, what is important and what you want to report. All these are important for the business and should be communicated to the SAP implementation / rollout teams (by the business management, other stake holders)

TW