Difference between Distirbution channel and Division

Question

Hi,
Could you please let me know the diff between Distirbution channel and Division with few examples.
Will award points promptfully.
Thanks and Regards,
Srini

Answer 1

Hi Srinivas,
I have a documentation on ES , thought it would be useful to you,
<b>ENTERPRISE STRUCTURE:</b>
Enterprise Structure or Organizational Structure is a framework in which all business transactions can be processed.
•     Company Code: it is the company for which we implement SAP. It is defined by FI. (4 digits code). It is the highest level of organizational element in Ent Stru, which allows posting revenues to G/L accounts.
•     Sales Organization: (4 digits code) is an organizational unit responsible for sale and distribution of goods and services.
•     Distribution Channel: (2 digits code) is a channel through which goods or services reach the customer.
•     Division:(2 digits code) the range of goods or services that the company manufactures falls in to different divisions.
•     Sales Area: combination of Sales Organisation, Distribution Channel and Division.
•     Sales Line: combination of Sales Organisation and Distribution Channel.
•     Sales Office: geographical aspect of the organization. Sales offices are assigned to sales areas.
•     Plant: the factory is called the plant in SAP.
o     Company Code to Sales Organisation:              One to Many
o     Sales Organisation to Distribution Channel:      Many to Many
o     Distribution Channel to Division:           Many to Many.
o     Plant to Company Code:                Many to One. In Intercompany: Many to Many
o     Plant to Shipping Point:                One to Many. Many to Many if in one geo area.
o     Plant to Sales Organisation:               Many to Many.
o     Division is always organization specific.
o     If sales organisation wants to use a plant, that plant must be assigned to the sales orgn.
o     Master data records are multiplied by each additional organizational element you have.
Menu Path for Sales Orgn/ Distbn Channel/ Sales Office/ Sales Group:
SPRO- IMG- Ent. Stru. - Defn. - S.D.- Define, Copy, Delete, Check Sales Orgn/ Distbn Channel/ Sales Office/ Sales Group.
Menu Path for Division Creation:
SPRO- IMG- Ent. Stru. – Defn. – Logistics General- Define, copy, delete, check div.
Defining Plant:
SPRO- IMG- Ent. Stru. – Defn. – Logistics General- Define, copy, delete, check plant.
A plant, though always linked to one company code, can be linked to several sales organizations.
Assigning Plant to Company Code:
SPRO- IMG- Ent. Stru. – Assignment- Logistics General- assign plant to company code.
Define Sales District: OVR0
SPRO- IMG- Master Data- Business Partner- Customer- Sales- Define Sales District.
Assignment Path:
SPRO- IMG- Ent. Stru. – Assignment – Sales & Distbn. :
Assign Sales orgn to company code: company code 4 digits code.
Assign Distbn channel to Sales orgn
Assign Division to Sales orgn
Set up sales area
Assign sales office to sales area
Assign sales group to sales office
Assign plant to sales orgn – Distbn channel
Business area account assignment:
Define rules by sales area
Assign business area to plant & div.: through plant and division.
Assign business area by sales area: through sales area.
Plaese reward point if it helps