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Purpose of Sale Area in Sap

Former Member
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Dear All

Plz tell me the why we define Sale Area in Sap and what are the purpose and if we canot define then what will happen.

Waiting

Regard to All

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi

SD is organized according to sales organization, distribution channel and division. A combination of these three organizational units forms the sales area.

Sales organization: An organizational unit within logistics that sells and distributes products and negotiates terms of sale.

Distribution channel: Channel through which saleable materials or services reach customers. You can assign a distribution channel to one or more sales organizations.

Division: Product groups 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.

Regards,

Nimit

Answers (8)

Answers (8)

Former Member
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This message was moderated.

former_member217082
Active Contributor
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Hi abbas

The purpose of the sales area is , to identify to which sales area the customers belong to .

Another reason is in which sales orgn , dist channel and division the invoice takes place

Regards

Srinath

Former Member
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HI

sales are means you koow sales org + dc + div very well everybody knows.----


right-?.

now iam comming to your point.

1) with out sales org under which company do the trasctions.

2) with out distibutional how the company will distibute product to final customer (consumer).

3) with out div how th ecompany will restrect the customers certain divisions.

they want sell some divisions in certain areas only in that case how----?.

4) and mainly the purpose of sales area is reporting purpose, anylasis, future planning.

5) cost control , production planning,

6) profitable anylasis,

i hope you get complete answer

if your doubts is clear don't forget to reward.

thanks

surya

Lakshmipathi
Active Contributor
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Dear shujaat

The main pre requisite for billing is that you should have maintained sales areas for customer and material.

If you have not maintained sales area, you cannot invoice.

thanks

G. Lakshmipathi

Former Member
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hi

sales area is a combination of sales org, distribution channel and division.

the sales area is an essential part of SD transaction processing. you assign customers, materials and documents to a sales area. sales area can also influence your pricing. and unless you do these assignments, you will not be able to do SD transactions.

other objects that may need assignment to the sales area, if you require, are Sales Info System objects (header and items), credit control area, business area, free goods determination, etc.

hope this helped.

reward points if helpful

regards

chetan

Former Member
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Hi..

Abbas

Sales area

A sales area is a specific combination of sales organization,

distribution channel and division.

In SAP it is necessary to set up sales area to create any sales order.

If you can not define the sales area u can not make any sales order.

Hope u will get the idea and importance of sales area.

Thx.

Former Member
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hi,

Sap Sd uses sales area as the center in this module, everything will work around sales area.And most of the org. stucture are constucted around sales area & we assign so many things to sales area.So IN SAP Sd u have to go with sales area concept.Otherwise u can do any transaction

And also creating a sales area allows you to exclude certain combinations of the different organizational areas.

regards

Susrikant

Former Member
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This message was moderated.

Former Member
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hi

Creating a sales area allows you to exclude certain combinations of the different organizational areas

Organizational element comprised of:

Sales Organization + Distribution Channel + Division

Will be used to link together the organizational aspects of sales to customers

Used for statistical analysis