In this topic we will discuss an example about Sales and distribution SD structure in SAP and how to use the organizational units/elements found in SAP SD module to map any sales department case in any company.
4 Revision: Here is the Organizational units in SD module :
* 4 more details click on the element that you want to know about
Company code
Sales Area
Sales Organization
Distribution Channel
Division
Sales Office
Sales Group
Sales Person
Plant
Storage Location
Shipping point
Example: International group of companies in 3 countries (England - Germany - France) that already implemented a SAP system for its operations, This group plans to open new company in Italy for distributing and selling its products there, The selling process in Italy will be controlled by only one department, All products will be sold by different ways direct selling / whole-selling / Retailing / Online, The company classify its products into three groups ( Phones - TVs - Others ).
The Company Strategy is to assign the selling process based on the group of product and the geographical place north/south, and then assign the sales duties to groups based on the way of selling and distributing ( direct selling or online and so on ).
There are two big warehouse for distributing one for the north and the other for the south and all deliveries done in the same way from those both warehouses.
The SD Structure In SAP:
"International group of companies in 3 countries (England - Germany - France) that already implemented a SAP system for its operations, This group plans to open new company in Italy for distributing and selling its products there"
- There were 3 company codes England, Germany, France and the new one will be Italy.
"selling process in Italy will be controlled by only one department" -
There will be one Sales Organization for Company code Italy .
"All products will be sold by different ways direct selling / whole-selling / Retailing / Online"
- There will be 4 Distribution channels, channel for each way.
"The company classify its products into three groups ( Phones - TVs - Others )."
- There will be 3 Division (product family).
"The Company Strategy is to assign the selling process based on the group of product and the geographical place north/south"
- That mean that will be 6 Sales Offices
"and then assign the sales duties to groups based on the way of selling and distributing ( direct selling or online and so on )."
- And that is mean that each Sales Office has 4 Sales groups ( Direct selling - Retailing - Online - Whole Selling ).
"There are two big warehouse for distributing one for the north and the other for the south and all deliveries done in the same way from those both warehouses."
- There will be two Plants and two Shipping Points , South Plant and its shipping point and North Plant and its shipping point.
4 Revision: Here is the Organizational units in SD module :
* 4 more details click on the element that you want to know about
Company code
Sales Area
Sales Organization
Distribution Channel
Division
Sales Office
Sales Group
Sales Person
Plant
Storage Location
Shipping point
Example: International group of companies in 3 countries (England - Germany - France) that already implemented a SAP system for its operations, This group plans to open new company in Italy for distributing and selling its products there, The selling process in Italy will be controlled by only one department, All products will be sold by different ways direct selling / whole-selling / Retailing / Online, The company classify its products into three groups ( Phones - TVs - Others ).
The Company Strategy is to assign the selling process based on the group of product and the geographical place north/south, and then assign the sales duties to groups based on the way of selling and distributing ( direct selling or online and so on ).
There are two big warehouse for distributing one for the north and the other for the south and all deliveries done in the same way from those both warehouses.
The SD Structure In SAP:
"International group of companies in 3 countries (England - Germany - France) that already implemented a SAP system for its operations, This group plans to open new company in Italy for distributing and selling its products there"
- There were 3 company codes England, Germany, France and the new one will be Italy.
"selling process in Italy will be controlled by only one department" -
There will be one Sales Organization for Company code Italy .
"All products will be sold by different ways direct selling / whole-selling / Retailing / Online"
- There will be 4 Distribution channels, channel for each way.
"The company classify its products into three groups ( Phones - TVs - Others )."
- There will be 3 Division (product family).
"The Company Strategy is to assign the selling process based on the group of product and the geographical place north/south"
- That mean that will be 6 Sales Offices
- Phones/ North
- TV /North
- Others/North
- Phones/South
- TV/South
- Others/South
"and then assign the sales duties to groups based on the way of selling and distributing ( direct selling or online and so on )."
- And that is mean that each Sales Office has 4 Sales groups ( Direct selling - Retailing - Online - Whole Selling ).
"There are two big warehouse for distributing one for the north and the other for the south and all deliveries done in the same way from those both warehouses."
- There will be two Plants and two Shipping Points , South Plant and its shipping point and North Plant and its shipping point.
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