Organization Structor

[Former Member]

HI FRIENDS,

Can any one tell me why we assain sales area combination when we are assaining individually the distribution channel to the sales organization and division to sales organisation.

and why we are assaining plant to sales line when we are assaining this plant to company code.

thanks,

nitchel

[Former Member]

thanks

[Former Member]

Hello Nitchel,

Sales Area:

Say sales organization = BP01

Distribution channel

01 = Export sale

02 = Domestic sale

Division

01 = cosemtics

I can create 2 different sales areas from the above inputs:

BP01-01-01

BP01-02-01

Individually we assign the particular distribution channel & division to the sales organization but we make sales area because:

1. SAP creates customer with reference to a sales area - so here we can control if a particular customer will not be included for export sale or domestic sale.

2. Similarly in case of division it can be controlled if a customer won't be able to buy products from a specific division.

So unless we create sales area in the enterprise structure We won't be able to use it for creating customer.

PLANT:

Basically a plant is assigned to the distribution chain. (distribution chain = Sales organization + Distribution channel). It controls for say export sale, the plant BP01 will supply materials & for domestic sales the plant BP02 will only supply material.

So whenever we create a sales order for export sale, the system will only consider the plant BP01.

Also a plant can be a manufacturing plant or a storage warehouse so it is assigned at the sales line.

Reward points if solution helps.

With best regards,

Allabaqsh G. Patil.

[Lakshmipathi]

Dear Nitchel

To answer your first question, let us assume you have one sales organization, multiple Distribution Channels and Divisions. Though as you said, you would be assigning all Distribution Channels and Divisions to one Sales Organization seperately, one by one, how system should determine for which sales area, sale order can be created. So in order to define the system to fetch the correct sales area, you have to maintain the combination of sales organization, distribution channel and division.

To answer your second question, it is almost similar to first one cited above. For one Company Code, there will be multiple Plants and when you create material master, unless you maintain the required sales area, system will not determine for which sales area, order should be generated. Moreover, as you would be aware, to generate a sale order / billing, the respective master datas should be assigned to sales area.

thanks

G. Lakshmipathi

[jpfriends079]

Hi,

As per SAP standards:Sales Area is Distribution Channel a Sales Organization uses to sell it certain Division's item.

Why Plant is assigned to Sales Area?

There is simple logic, when Plant is assigned to a company code it becomes a PRODUCTION PLANT and cost accounting (controlling purpose), whereas, when the same plant is assigned to sales area it becomes DELIVERING PLANT or sales plant. And as we know that our material Cost and Selling price for a particular material is generally different.

Hope your query is clear.

Take care.

JP

[safeer_rahman2]

Hi Nitchel...

We are assigning sales org to the distribution channel and to the division just have clear idea Much sales of that particular division is carried out by a particular division...

For Eg: Consider this case, In the company Hindustan lever , soap and samphoo are the two divisions whereas Dealer sales and Exports are the distribution channel.. They are having two sales org in Mumbai and Delhi.. Now imagine possibilities of the sales areas...

1) Mumbai-Dealer Sales-Soap

2) Mumbai-Dealer Sales-Shampoo

3) Mumbai-Exports-Soap

4) Mumbai-Exports-Shampoo

5) Delhi-Dealer Sales-Soap

6) Delhi-Dealer Sales-Shampoo

7) Delhi-Exports-Soap

😎 Delhi-Exports-Shampoo

So its easy for the company point of view to track down, how much of soap sales are carried out via dealer sales in Mumbai...and similar kind of assesments... for this reasons its maintained like that...

Plant is assigned to the sales org just because, the materials which are manufacature by the plant can be sold by that particular Sales Org..

Hope this helps... Reward if this helps...

Thanks,

Safeer Rahman

[Former Member]

Hello,

If you think in that way..then we are not assiging distribution channel to a division directly anywhere.

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

The organisation unit plant can be a manufacturing unit as well as a distribution unit. So, in sales order the plant plays a vital role and is determined from customer material inforecord / customer master / material master. It is not directly determined from Companycode.

Prase

[Former Member]

Hi,

reasons are

Assigning Distribution Channel to Sales Organization

This assignment ensures, a Sales Organization can supply Materials to Customers through this Distribution Channel.

and Setting up Sales Area

All the sales are made from a particular sales Area.

For creating a Sales Order Sales Area is compulsory.

Some times Plant is the place from where u can sell your product or u can restrict somr product frm specific plant.

So we assign Plant to SO and DC

Thanks,

Raja