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Thursday, November 19, 2009

Why Do We Assign Division to Sales Organisation

In SAP, why do we assign division to Sales organisation not to distribution channel?

In SAP Business Process

Sales Area= Sales Org.+Dist.Channel+Division.

Its Triangular intraction

Sales organization
/ \
/ \
Dist.Channel<----------------->Division

Sales Org controls Distribution Channel and Division

Distribution Channel: The channel that is choosen the organization to make their product reach the end customer.(Network)

Division: Ex: HLL--------> Detergents, Out of Home,Food Products,Health Care Sectors/Departments
TATA Motars: Trucks/Bus,Cars,Heavy Vechiles Etc...

Please note it is not:

Sales organization
|
|
Dist.Channel
|
|
Division

Division is an Oragaizational Unit.

The Division in the Material Master is not an Organizational Unit that can be used to maintain related fields. It is a field which is used to uniquely assign a material to a Division.

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