what is sales office and sales organisation distribution channel

[Former Member]

Hi gurus,

can any one explain me with industry like example F.M.C.g it is marketing products like health care and skin care

How do you segregate as company code, salesoffice, distribtuion channel, divison. how do you segregate.

Thanks and Regards

[Former Member]

in companies like FMCG,

you can differentiate the health care skin care personal care as DIVISIONS no need to make new company code, salesoffice, distribution channel, division. how do you segregate.

This is because all these products you must be seeling under one company only.

You might be having 10 offices in India but the all must be providing all the product range so no need to make different sales offices.

You might be selling these product directly or via distributor so u can have them as per your convenience but not based on products

This is what my exp with retail company. But certainly you can segregate them as per MC / No. Range and category.

Regards,

Vishal

[former_member204513]

Dear Nag,

Go through these definetions you can get some input.

1.Company code (FI)

Financial Accounting (FI)

The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

This includes recording of all relevant transactions and generating all supporting documents required for financial statements.

2.Sales office (SD)

Sales and Distribution (SD)

A organizational unit in a geographical area of a sales organization.

A sales office establishes contact between the firm and the regional market.

3.Distribution channel (SD)

Sales and Distribution (SD)

The Distribution channel reperesents the channel through which saleable materials or services reach customers.

Distribution channels include wholesale, retail, and direct sales. You can assign a distribution channel to one or more sales organizations.

Use

Within a sales organization a customer can be supplied through several distribution channels. In addition, the material master data relevant for sales, such as prices, minimum order quantity, minimum quantity to be delivered and delivering plant, can differ for each sales organization and distribution channel.

Structure

A single distribution channel can be assigned to one or more sales organizations.

4.Division (SD)

Sales and Distribution (SD)

An organizational unit based on responsibility for sales or profits from saleable materials or services.

In the SAP R/3 System you can define a division-specific sales organization. Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products.

For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing procedures.

Based on the above definitions you can take decision on how many company codes you want ,how many distribution channel you want and how many divisions you want.

I hope it will help you,

Regards,

Murali.