Doubts in organizational Structure??

[Former Member]

HI All,

In real time practise, How Sales organization are maintained ?? Is it only one for sales org for a country. (this is my main doubt)

Say for company Dell.

Client .. Dell Corporation.

Company Code : can be each for one country. ??

a) Dell USA

b) Dell India

Sales Organization :.. <b>How they are maintained ?? each for country ???</b>

a) Dell Sales Org USA

b) Dell Sales Org India

Distribution Chanell

a) Retails Sales

b) Whole Sales

Division

a) Laptops

b) Desktops

Plant ..

a) Even though Dell dont produce any laptops in USA. they still can say plant where they store Laptops which are manufactured in China as Dell Plant USA. Am I right ???

is there any difference betweeb plant and delivery plant.

Please correct me, if I am wrong .. Thank You .

Regards

Venkat.

[Former Member · Accepted solution]

hi

u r right one company code per country because of various tax implications and for better flexibility

1 sales org per country

if the plant is assigned to the USA company we can maintain as plant

[Former Member]

Hi

Please note that the relation between company code and sales organisation is one to many.

under 1 company code you can also have (depending on clients business)many sales organisations.

regards.

[Former Member]

Thank You everyone !!

I got it ..closing thread !!

alloting points ..

Regards

Venkat

[Former Member]

Dear Venkat,

We assign one sales organisation in one company code but it assign more than one plant .

sales organisation will take care of all resposible of sales and sevices

aall items of an order ,delivery ,and billing docs will take care of sales organisation

sales organisation having so many distribution cannels and divisions

so generally company having one sales organisation

Hope this scenario helps you

Prem

[Former Member]

Hello Venkat,

The logic of maintaining organizational structure entirely depends on business requirement.

Usual business practice is to maintain company code specific to a country in order to lessen the complications of finance. As different countries have different tax structure, different financial terms etc.

But if the requirement is such that I need to have only one company code and countries as various sales organizations then we can do for that.

Hope it helps.

Regards,

Priyanka

[Lakshmipathi]

Hi Venkat

One Sales Organization can have only one Company Code which means you can have Sales Org Dell US to Company Code Dell USA and Sales Org Dell India to Company Code Dell India.

You can create two Distribution Channels as you mentioned and assign it to each Sales Organization. Similarly for Divisions also. But for plant, since you have mentioned that Dell US plant dont produce Laptops, dont create this as a plant. Instead you can create as a separate storage location and assign it to the respective plant which is producing Laptop.

Hope your question is addressed fully.

Thanks

G. Lakshmipathi

[Former Member]

Dear Venkat,

This majorly depends on your business decision.

Ideally speaking, there should be 1 company code for 1 country.

But in your example, Dell India can be a sales organisation also.

I have implemented in a project where there was 1 company code for the Head Office at Australia, and all other countries were mapped as sales organisation.

There will be no problems for financial consolidation as Controlling area will be defined as per country, and we can maintain country specific chart of accounts in global chart of accounts.

Regards,

Anirban