Sales Organisation

[Former Member]

HI Experts,

I am a Trainee Fico Consultant & would like to understand the definition of Sales Organisation, Sales Area, Distribution, Division & Setting up of Sales Area.

Please explain the same for me with an example.

Also, if you could send some basic notes on SD for my understanding.

mohit_ohri@rediffmail.com

Points will be assigned.

Thanks

Mohit

[Former Member · Accepted solution]

Hi Mohit,

SALES ORGANISATION: A sales organisation is an organisational unit that sells and distributes products/services, negotiates terms of sale and is responsible for carrying out day to day business transactions.

One or more sales organisation is assigned to a company code but the number of sales.org should be kept to a minimum i.e. one per company code.

Every sales organisation carries its own (customer and material) master data and NO two sales organisations can share a single master data.

DISTRIBUTION CHANNEL: A distribution channel is a channel through which materials/services reach customers – example – wholesale, retail, internet sales etc.

DIVISION: A division is a product range. Divisions are utilized in SD but are defined under logistics general.

A division can be assigned to more than one sales organisation.

SALES AREA: sales organisation + distribution channel + division

A sales area is basically used for reporting purposes. You can define pricing per sales area, or sales information analyses per sales area.

Relationship between sales org and dist. Channel is – MANY 2 MANY.

Relationship between sales org and division – MANY 2 MANY.

Adding divisions doesn’t multiply the MMR views but it does multiply CMR – sales views.

A sales area is mainly used for reporting purposes and defining all data relevant for sales, like pricing and information analysis.

An internal org. structure has the following elements: sales office, sales group and sales personnel.

SALES OFFICE: Geographical aspects of the organization in business development and sales are defined using the term sales office.

A Sales office is assigned to a sales area.

SALES GROUP: The staff of sales office are subdivided into sales groups and are assigned to sales office.

Regards

Sai

[Former Member]

Hi,

Sales Org:

The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements. A sales organization is responsible for the sale and distribution of goods and services.

Distribution channel:

The distribution channel represents the channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales.

Division:

Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products.

Sales Area:

A combination of Sales Organisation, Distributional channel and division forms the sales area.

Prase

[Former Member]

Sent mail to your ID. Reward if helpful

[Former Member]

Hi Shiv,

Attachment is missing in your email. Please send the same again.

Thanks

Mohit