Sales organization vs. division

Dear experts,
I've gone through the relevant thread. However, I still got some questions:
Customer just set up company & new business. They have unclear throughts about the business management. They have 2 sales departments to sell 2 different products.
Since those 2 different products are delivered from 2 different plants (in SAP), it seems ok to define sales organization based on products or define division based on products.
Q1: In view of SAP system, any critical factors need to be considered except master data maintenance? Appreciate your experience sharing?
It's said that a sales organization cannot share any master data with other sales organizations.
Q2: If using the same number range, can I have the same customer number or same material number for different sales organizations?

Hi,
this is to inform you that,
Since those 2 different products are delivered from 2 different plants (in SAP), it seems ok to define sales organization based on products or define division based on products - you can have two divisions for this.
Q1: In view of SAP system, any critical factors need to be considered except master data maintenance? Appreciate your experience sharing?
It's said that a sales organization cannot share any master data with other sales organizations.
then you create own master data basing on sales organisations. that means sales organisation one should not share the master data of ssales organisation 2.
Q2: If using the same number range, can I have the same customer number or same material number for different sales organizations?
q2.a.you can divide all number ranges if you want because you are dealing with two different products and they are not similar.
in your case master data doubles that's nothing more than that.
hint:
what ever you do please think from reporting perspective and do it.
this clears your issue.
regards,
balajai

Similar Messages

Risk on wrong definition of sales organization, distribution channel and division

Hi,
our organization just started to implement SAP and SD module is one of the subject to complete.
We are in the defining phase of the above subject but I still can not understand the risk of being miss-defining the sales organization, distribution channel and division. Is it true will only impacting the pricing and reporting only? Are there going to be future impact on this?
Thank you before for your explanation.
Andy

Hi Andy,
Good to see the suggestions!
These are the rules I try to follow:
Do not over do it. Simple is better and facilitates change.
One sales organization for each company code unless significant differences exist between independent sales departments. Like one wants to use CRM and others won't. It's roughly equivalent to one by each top level sales director.
One distribution channel for each sales channel group that defines different prices or different shipping conditions for the same material. Like retail and wholesale have different pricing. Special rules can apply like mail delivery require different correspondence settings.
One division for each division of the company. If company has no clearly defined divisions (like Aeronautics and Footwear) there is no need (in sales) to split (it might in financials).
Using sales office and sales group for reporting is a lot better than the top level structures because it's easy to change them in master data, unlike sales org or distribution channel. And when departments get reorganized the system effort is significantly reduced if no change occurs at those three top levels.
So I normally use the sales office to the first or second level of reporting and sales group in some cases to represent individual sales persons or nothing at all in other cases.
regards,
Edgar

Extending division 50 to Plant 5000 and sale organization 5000

Dear Gurus,
Currently division 50 is available in plant 1000 and sale organization 1000.
I need to extend division 50 to sales organization 5000 and plant 5000.
Kindly provide the step by step procedures to do the same.
Thanks in advance.
Regards,
Rajendran R

Hi,
There is no link for Division and the Plant,
You can assign the Divison to the Sales organisation in the Customizing
path :
IMG>ENTERPRISE STRUCTURE>ASSIGNMENTS--->ASSING DIVISIONS TO SALES ORGANISATION
here you can assign the Division to Sales organisation
Please let me know if you need more details
regards,
santosh

Authorization about crm sales Organization --division

Hi, all
I have a question about Authorization , In PFCG , I have used the authorization object CRM_ORD_OE,
It can check the organization( Distribution Channel, Sales Group, Sales Office,Sales Organization ID)
but I can not find the object to check sales Organization --division.
help, please give me help , thx.
Andy

Hi,
Check the following Authorization Objects For CRM:
CRM_OPP (authorization object CRM transaction u2013 allowed organizational units)
SALES_ORG (sales organization)
SERVICE_OR (service organization)
DIS_CHANNE (distribution channel)
SALES_ORG (sales office)
SALES_GROU (sales group)
ACTVT

Sales order item category per sales organization

Hi
Sorry for the question, I am FI/CO expert, and since our SD expert left us, I am also the SD expert now.
Can I define different item categories for the same sales order type for different sales orgs?
VOV4 (IMG-sales and distrebution-sales-sales documents-sales document item-assign item categories) has no sales organization parameter.
Thanks
Ofer

>
Ofer Cohen wrote:
> Can I define different item categories for the same sales order type for different sales orgs?
> Ofer
Yes, you can define different item categories (in t.code VOV7) and assign to same sales order types. The item category is determined by based on Sales document type + Item category group (from material master) + Item category usage + High level item category (check t.code VOV4).
The item categories are not assigned to sales organization, but the sales document types are assigned to sales area. Check t.code VOV8, where the sales documents are defined and in t.code OVAZ, the sales documents are assigned to sales area (sales area = sales org + distribution channel + division).
YOu can see the steps of configuration at SPRO -> Sales and distribtution ->Sales document header (related to sales document type) and then at -> Sales document item.
Regards

Sales organization structure changes in COPA

Hi All,
My client like to change Sales organization structure like Distribution channel,division,sales office,sales group etc. and profit centers in sales orders.
from 01/01/2011 we like to post all open sales order's settlments to new sales organization,distribution channel,division,sales office,sales group and profit centers in COPA.
What is the best way to achieve this?
Any help is appreciated.....
Thanks,
Anusha

Hi,
I think COPA realignment should work for you.
If you can establish the exact relation ship between old Sales org structure to new Sales org structure, you can design your realignment in such a way that the new sales data will reflect the new structure.
For this,
1.You need to select the sales documents for which you want to change the sales org.
2. If you want to derive them again, you can do so
3. If you want the sales org structure elements to be replaced by new ones, you can do so.
Following a realignment, only the new assignment is known in the information system and in planning. The characteristic values valid at the time the original posting was made can only be analyzed in line item reports. Because the existing profitability segments are changed to adhere to the new assignment, all objects assigned to those profitability segments - such as sales orders or projects - and all existing SAP documents - such as billing documents or FI documents - reflect the new assignment as well.
For more details, check the following link. [http://help.sap.com/saphelp_erp60_sp/helpdata/en/7a/4c48c64a0111d1894c0000e829fbbd/frameset.htm]
Njloy
Siva

Pricing procedure assignment to sales organization

Hi Expert,
One particular pricing procedure is defined and assigned to particular sales organization in table T683V. I have assigned same pricing procedure to another sales organization which is now reflecting in that table. When i am trying to create sales order for newly assigned sales organization, it is not showing condition types for that particular sales order in conditions tab for that particular material. Can you please tell me why this is happening & what would be the solution for this ?
Thanks.

Hi,
In Sales & Distribution - Basic Functions - Pricing - Pricing Control - Define and Assign Pricing procedure,you can define your pricing procedure to Sales Organization,Distribution Channel and division level.You can't define on sales organization only.
This question you should post in SD forum.
BR,
Praveen

Explain about sales organization and its functionalities

Explain about sales organization and its functionalities

Hi Suresh,

Definition: The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements.
Use: A sales organization is responsible for the sale and distribution of goods and services.
It represents the selling unit as a legal entity. It is responsible for product guarantees and other rights to recourse, for example. Regional subdividing of the market can also be carried out with the help of sales organizations. Each business transaction is processed within a sales organization.
The sales organization must be specified in all sales documents. It is therefore available for all basic functions of SD (such as pricing, availability, etc.).
Structure: A sales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel.
Several divisions can be assigned to a sales organization which is responsible for the materials or services provided.
A sales area determines which distribution channel can be used to sell the products from one division in a sales organization.
Integration: Each sales organization is assigned exactly one company code for which you enter all accounting details of the sales organization.
A distribution chain can be active for several plants and the plants can be assigned to different company codes. If the sales organization and plant are assigned to different company codes, an internal billing document is sent between the company codes before the sales transactions are entered for accounting purposes.
Thanks,
Vinay

SALES ORGANIZATION -COMPANY CODE

Hello,
Why sap says that the thumb rule that the sales organisation should be kept minimum per company code. What is the significance behind this statement. Why cant we have more than 1 sales org assigned to company code.

Hello,
Each sales organization is assigned one company code.
You can have more than one Sales organisation in one Company Code .
Each sales organization represents a "selling unit" in the legal sense. Its responsibilities include product liability and any claims to recourse that customers may make. It is also responsible for the sale and distribution of merchandise and negotiates sales price conditions. Sales organizations can be used to reflect regional subdivisions of the market, for example by states. A sales transaction is always processed entirely within one sales organization.
If there is one sales organization for the company code
The sales organization represents the company code Sales areas defined in the R/3 System are used to refine the structure of the external organization
Each sales area consists of the following R/3 organizational units (in any combination):
Sales Organizations
Division
Distribution channel
If there is more than one sales organization for the company code
Possible reasons for having more than one sales organization for each company code:
· Different legal responsibilities, for example product liability
· Unusual stipulations (for example legal), which make it necessary to distribute different product lines separately u2013 for example, products for medicine and veterinary medicine
· The desire to separate completely the sales activities of different enterprise areas
Separate distribution responsibilities, each with their own Marketing and Pricing policy u2013 for example, one for the domestic market and one for export
Overlapping customer and product master records or the desire to maintain customer and product master data in a specific, unusual way
· Overlapping responsibilities for order entry, or for sales and distribution processing (sales authorizations)
As generally said , our organisation structure in SAP should be simple to improve efficiency .
Hope it helps..
Thanks/Rajesh

Structure of Sales Organization?

Structure of Sales Organization?
What is Tolerance Group?
What is the format of Business Blue Print?
When do we require the functional Specifications?

Hi Farhan,
The Structure of Sales Org, differs from client to client. Its purely client specific.
But normally the structure containes, Sales Org, Distribution Channel, Division, Sales Group and Sales Office.
Tolerance groups:
Tolerance groups represent amounts or percentages by which receivables may be underpaid or overpaid.
Amounts and percentage values for tolerances relating to underpayments and overpayments of receivables are defined in a tolerance group.
Business Blue Print;
Business Blue print is understanding the clinets business completley. While we are implementing SAP to any client, first we have to understand their business completely so that we can map accordingly in SAP system. So, after understanding their business, we will prepare a document called as Busines Blue print. While is nothing but AS Is study.
Functional Specification:
To speak at macro level that is at projet manager or at senior levels. The Functional Spec (Specification) which is a comprehensive document is created after the (SRS) Software Requirements Document. It provides more details on selected items originally described in the Software Requirements Template. Elsewhre organizations combine these two documents into a single document.
The Functional Specification describes the features of the desired functinality.. It describes the product's features as seen by the stake holders,and contains the technical information and the data needed for the design and developement.
The Functional Specification defines what the functionality will be of a particulat area that is to be precise a transaction in SAP terminology.
The Functional Specification document to create a detailed design document that explains in detail how the software will be designed and developed.
The functional specification translates the Software Requirements template into a technical description which
a) Ensures that the product feature requirements are correctly understood before moving into the next step, that is detchnical developement process.
b) Clearly and unambiguously provides all the information necessary for the technical consultants to develop the objects.
At the consultant level the functional spects are preapred by functinal consultants on any functionality for the purpose of getting the same functinality designed by the technical pepole as most of the times the functionalities according to the requirements of the clients are not available on ready made basis.
Let me throw some light on documentation which is prepared before and in a project:
1) Templates
2) Heat Analysis -
3) Fit Gap or Gap Analysis
4) Business Process Design
5) Business Process Model
6) Business Change & Impact
7) Configuration Design, which is just 5 % of Total SAP- have different names -
8) Future Impact & Change Assessement
9) Functional Design (Module Wise)
10) Risk Assessement
11) Process Metrics and Many More-- Which has impact on Business and its work flow
Hope this is helpful.
REWARD IF HELPFUL.
Regards,
Praveen

No sales organizations in the list

When create any sales document error message "Enter a sales organization" appears but no Sales Organization exists in the list. The org. structure is created according to C01_BB_ConfigGuide.
When editing a business partner in Sold-to-party role, no sales organizations exists in the list too.
Could anybody help us?

Thank you.
I checked the org data and it seems to be all right.
I have the following org tree:
1. Company BP for CRM ([ ] permitted for determination, Country=US)
1.1. Sales Org BP01 ([x] Permitted for determination, [x] Sales Organization, Country=US, Tupel=0101, Postal Code=00000-99999, Region=CA, Divison=01, DistrChannel =01)
1.2. Sales Org BP02 ([x] Permitted for determination, [x] Sales Organization, Country=DE, Tupel=1101)
The business partner I use in sales transaction has attrbutes: Country=US, Region=CA, Postal Code: 95630
The determination rule chooses Sales Org 1.1 as organizational unit but nothing as sales org, distrib channel and division (these fields are empty).
The log in Organization tab is:
[ok] |Organizational data determination Sales
[ok] |Transaction type: TA
[ok] |Org. data profile: 000000000005
[ok] |Org. data model det. role: AC10000166
[ok] |Container:
[ok] |Attribute: COUNTRY, Evaluation: US
[ok] |Attribute: DIVISION, Evaluation:
[ok] |Attribute: D_CHANNEL, Evaluation:
[ok] |Attribute: REGION, Evaluation: CA
[ok] |Attribute: SA_GROUP, Evaluation:
[ok] |Attribute: SA_OFFICE, Evaluation:
[ok] |Attribute: SA_ORG, Evaluation:
[ok] |Following organizational units were found:
[ok] |O 50000041 SO_BP
Why did it determine empty SA_ORG, D_CHANNEL and DIVISION attrs?
Best Regards,
Sergei
Message was edited by: SERGEI KUZMIN

How to change sales organization input help search view in trade promotion?

Hi,
We are creating trade promotions. While creation, we have to select sales organization. We press the input help button of field sales organization, and we are facing sales organization search list. Here in search list, there are four columns, sales organization id, sales organization text, distribution channel and division. I want to add columns the texts of distribution channel and division but I can't find the component name for this screen. What is the component name of sales organization input value screen?

Hi Astron,
They are basically DDIC search helps., They dont have a UI component.
Check the code in method GET_V_SALES_ORG_DESC of Trade Context Node.
More details on https://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/d0646247-efe2-2b10-3b99-c1a12ef2d752
Regards,
Masood Imrani S.

Sales Organization Structure for Distribution Industry

Hi Experts,
Need some inputs wrt Distribution Industry
1. In Distributor set up. how should we set up the different manufactures which supply the products for distribution.
2. How should we link the manufactures to Products they supply.
3. How should we link the sales representatives to specific manufactures.
4. Would it be a wise decision to incorporate manufactures as a division in the organization structure. Or should we map the manufactures as vendors and maintain the Vendor Info records.
It would be really great if any one can share their experiences wrt to sales organization structure in the Distribution industry especially Pharma Distribution.
Regards,
KK

hi
this is to inform you that:
first of all i have a question to you. you are manufacturer of products that means are you paying excise duty for manufacturing products or only distributor of products.
1. In Distributor set up. how should we set up the different manufactures which supply the products for distribution.
1.a. You can consider if you are manufacturing and distrubuting products
If you are a manufacturer - tae material FERT if you are a distributor - tae HAWA asa material type.
2. How should we link the manufactures to Products they supply.
2.a. the organisation struccture lins each other & MMR also helps to lin
3. How should we link the sales representatives to specific manufactures.
3.a. it may be specific to divisions tae one sales group for each specific divisions.
4. Would it be a wise decision to incorporate manufactures as a division in the organization structure. Or should we map the manufactures as vendors and maintain the Vendor Info records.
4.a. manufacturer as a vendor and different products a divisions.
It would be really great if any one can share their experiences wrt to sales organization structure in the Distribution industry especially Pharma Distribution.
sales organizations : 2 - domestic & exports
distribution channels : 3 - retail - super stocists - C & F agents.
retail/wholesales/distributors/superdistributors/super distributors - all you can consider all into one distribution channel or tae as different distribution channels you have to analyse from reports perspective to have all these.
divisions - products = divisions lie cardiac - orthopedic to name a few.
sales office : you can have many as per your requriment.
sales group : basing on divisions = sales groups
company code = how many balance sheets you are submitting now to AAI that many company codes you have to have.
batch management with FIFO or LIFO strategy has to be mandatory in implementation.
balajia

About configuring sales organization and sales office

how can i create sales organization and sales office in SAP ??

Hi
where to create new sales orgs and sales office is well explained by the other friend
After creating the new sales org there are a lot of assignments to be done in img-enterprise structure assignment-sales and distribution
1.   assign sales org to company code
2.   Assign sales org to distribution channel
3.   Assign sales org to division
4.   Assign sales org distribution channel to plant
5.   Set up sales area
6.   Assign sales office to sales area
Like that a lot of enterprise structure assignments needs to be completed
Plus
T code VOR1 define common distribution channels
T code VOR2 define common divisions
T code OVAO combine sales organizations
T code OVAM combine distribution channel
T code OVAN combine divisions
T code OVAZ Assign sales order types to sales areas
(Right now i dont have SAP access so that i am not able to tell you every thing
But these are must assignments which needs to be done if you have to use your new sales org
All the best
Regards
Raja

Assignment of Single sales office to multiple sales organizations

Hi,
We have a scenario where we need to Assign single sales office to multiple sales organizations in CRM. When i am trying to assign sales office to more than one sales organization 1st assignment between Sales office and Sales Org is getting deleted, and only the 2nd assignment is available.
Please let me know how to overcome this problem.
Regards
Raju

Hi
1. There are 2 version in CRM Org Model.
a) SBIV (Standard Backend Integration Version)
b) EBIV (Enhanced Backend Integration Version)
2. EBIV is used to handle multiple assignments in CRM system.
3. As you know we have 3 Org Units as far as Sales is concerned i.e. Sales Org, Sales Office, Sales Group.
4. In R/3 there is a standard way to maintain multiple assignments among these org units.
Ex: Sales Group 'X' works (assigned) for 2 Sales Offices 'North' and 'South' simultaneously.
5. But in CRM this assignment is not as common as in R/3 and is not supported thru SBIV.
6. If you would like to have these multiple assignments made in R/3 available in CRM as well you may want to go thru EBIV.
7. Once you run EBIV you cannot go back to SBIV.
8. In EBIV divisions and distribution channels can only be assigned to sales units (sales organizations, sales offices, and sales groups). If they are assigned to any other neutral Org Units (Org Units without any Org Attributes), those assignments would be deleted once you shift from SBIV to EBIV.
Hope this helps.
Regards
Manohar

Sales organization vs. division

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