Elements considered for driving the sales organisation.

[Former Member]

Hi,

Please explain the criterias/ elements which are considered to for sales organisation of the company.

Thanks,

Nitin

[Lakshmipathi]

Dear Nitin

Sorry your question is not clear. Do you want to know what is meant by Sales Organization. If so, below is the details.

An organizational unit subdividing an enterprise according to the requirements of Sales. It is responsible for selling materials and services.

A sales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel.

Several divisions can be assigned to a sales organization which is responsible for the materials or services provided.

A sales area determines the distribution channel used by a sales organization to sell a division’s products.

A sales organization is always assigned to one company code. The accounting data of the sales organization is entered for this company code.

A distribution chain can act for several plants. The plants can be assigned to different company codes. If the sales organization and plant are assigned to different company codes, an internal billing document is sent between the company codes before the sales transactions are entered for accounting purposes.

Thanks

G. Lakshmipathi

[Former Member]

Hi Nitin,

your question is not so clear.

If you want to know deciding factors for determining number of sales orgs.

It is truly business based.

For example the company has presence in majorly in 4 zones say North West south East 4 sales orgs make sense.

You can think in terms where the business level decision for sales are taken.

the number of sales orgs should be equal to number of decision centres.

Post for any furthur clarification/Correction.

Reward if Helpful

Abhishek Swarup