SD is organized according to sales organization, distribution channel and division. A combination of these three organizational units forms the sales area.
The following graphic displays these organizational elements.
An organizational unit subdividing an enterprise according to the requirements of Sales. It is responsible for selling materials and services.
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 the distribution channel used by a sales organization to sell a division’s products.
A sales organization is always assigned to one company code. The accounting data of the sales organization is entered for this company code.
A distribution chain can act for several plants. 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.
An example of corporate structure with sales organization is given in the following graphic representation:
The distribution channel is the channel through which saleable materials or services reach the customer. Distribution channels include selling to consumers through various types of retail outlet or via mail order.
Each distribution channel is assigned to a sales organization, and these two units together form. a distribution chain. Multiple assignments are possible.
Data is not retained at distribution channel level. A distribution channel level is not a data retention level until it has been combined with a sales organization or (later) a division as well.
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