SD Organizational Structure Assignment

Organizational Units defined in Sales and Distribution Module need to be logically assigned to one another to form a proper hierarchy. 

 Rules for Assignment:

Ø  One or more Sales Organizations can be assigned to a Company Code but each Sales Organization belongs to one & only one company code.

Ø  One or more Plant can be assigned to a Company Code but each Plant belongs to one & only one company code.

Ø  One or more combination of Sales Organization and Distributional Channel can be assigned to a Plant.

Ø  If the Plant and Sales Organization belong to different company codes, then the Sale's transaction is categorized as Inter-company

Ø  One or more Shipping Points can be assigned to a Plant. Similarly, one or more Plants can be assigned to a Shipping Point.

Organizational Structure in Sales and Distribution

Organizational Structures in Sales

                  A variety of organizational units are available for modeling sales business transactions. In the sales area, the following organizational structures can be defined and used to model and structure the sales

structures:

Sales organization

Distribution channel

Division

Sales area

Sales office

Sales group

Other

Shipping point

Transportation planning point.

Company Code is a smallest organizational unit of external accounting, which forms the top of the sales and distribution chain

Sales Organization is responsible for the sale and distribution of goods and services which represents the selling unit as a legal entity and is responsible for product guarantees and other rights to recourse. It is highest in the sales and distribution chain

Distributional Channel represents the channel through which sellable materials or services reach customers

Division is a collection of Product groups. A material belongs to exactly one division only.

Sales Area is the set-up that combines Sales organization , distribution channel and division

Sales Office is the geographical aspects of the organization of business development and sales

Sales Group is the staff of a Sales office