can any one solve this problem

[Former Member]

hi gurus

I have doubt a company manufacturing different difrrerent products like bottles,insurances, and bikes. In that case how many company codes can we use. i know that we can use 3 company codes we can use but the question is in what basis you will create sales organisation and distribution channel. Can we use same distribtuion chaneels of one compnay can we use for other company codes is it possible or not

clear me

Thanks & Regards

[Former Member]

hello, friend.

how many company codes you need depends on how many units are legal entities and, therefore, legally required to maintain financial/accounting books. so, if there is only one company handling all products, you will most likely be needing only one company code. but if this enterprise is composed of 2 or more registered companies, then you will have as many company codes.

as for sales organization, this can be assigned to only one company code. a company code can have one or more sales organizations. if these products are not being handled by a separate sales force, usually one sales organization will suffice.

you can use distribution channels to different sales organizations. whether you will use only one channel or many channels will depend on several factors such as:

1. will the products reach the customers through different means?

2. will pricing be affected by different types of channels (e.g. wholesale vs. retail)?

3. will you be restricting channels to certain geographical areas and/or plants?

given a certain company code the more organizations and channels you have, the more flexibility you "might" have, but the more tedious your master data maintenance and configuration.

in the end, you will have to consider the advantages and disadvantages of these features.

regards.

jty

[ranjeetrajendra_jain]

Hiya

I think you can have similar distribution channel however you can differ on divisions as these are different line of products..

You can also differ at Org Stucture however how you want the account to be managed it would depend upon that....

Map a couple of different scenarios on paper and think of implications that it would have on Sales, FI and other modules and depending upon that you can decide which one to go with..

Regards

[Former Member]

>

> hi gurus

>

> I have doubt a company manufacturing different difrrerent products like bottles,insurances, and bikes. In that case how many company codes can we use. i know that we can use 3 company codes we can use but the question is in what basis you will create sales organisation and distribution channel. Can we use same distribtuion chaneels of one compnay can we use for other company codes is it possible or not

> clear me

>

> Thanks & Regards

Hi Nagesh,

Before i attempt to answer your question one small request.

Whenever you post a question instead of putting topic as "Can anyone know" Try putting more relevant topics like problem with distribution channel or Help with org structure it will increase views to your question highly and hence chance of getting it solved.

The question you have asked is highly a business question than a technical.

No doubt SAP will allow you to go with 1 2 or 3 company codes and same distribution channels even.

But the bottom line remains how does your business runs.

If the business requirement is such that you need to have three different legal entities for selling these three items you HAVE to go with 3 Compnay Codes (for example two of them are 100% subsidiaries of first one, this will generally happen for tax savings etc) other wise you can go with a single company code and have all these three as three different divisions with a dedicated distribution channel as well.

As insurance is a service the requirements are entirely different from bottles or bikes.

Again if the insurance sold are for bikes may be you can assign both divisions to same Dist Channel and so on.

Regarding Sales Orgs again it is a business decision

Generally bike and insurance should be under one sales org as the sales startegy will be same for them and each bike will have an insurance so accounting will be same for both.

I am not clear what are bottles exactly.

Hope it helps to some extent

Post for furthur clarification

Regards

Abhishek Swarup

[Former Member]

hi abishek

Thank for ur advice. I got some idea through your answer.

[Former Member]

hi abhi shek

here bottles are again different products What i came to know from your answer is 1 comp code for insurance,1 for bike, i for bottles.

wehave distributon chain of whole, direct sale of comp code1

This distributon chain can we use for the rest 2 cinoabt codes or not

please let me clear about distributon channel and sales or g and sales offices

Edited by: nag nageshwar on Jan 4, 2008 7:54 AM

[Former Member]

hi,

This depends upon the client requirement

Option 1:

U can create three different dist channel

dist1: Bottels

dist 2: Insurance

dist 3: Bikes

Option 2:

If the company has three legal entities for the products

Then u can create three diff company codes separately

this all depends upon the client requirement

regards,

Arun prasad

[Former Member]

Dear Friend ,

As per me , you can work the scenerio with two Company codes.

For the Manufacturing Things -Bottles & Insurance

(Under Different Distribution channel)

Secondly for the Insurance as the postings and sales procedecings will be different.

at a point you can have many solutions for mapping this situation.

GO for the Best and the Worst scenerio....

Please also tell me what did you finally arrive at the end of the day.

edited by...

Amlan Sarkar

[Former Member]

You can assign the same distribution channel to other company codes also.

Regards.