SD Terms "Sales Organization", "Distribution Channel", "Sales Office", "Sales area", "Division" and "Sales Group"

By Lakshmipathi

1) Sales Organization

An organizational unit subdividing an enterprise according to the requirements of Sales. It is responsible for selling materials and services.

2) Distribution Channel

The distribution channel represents the channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales.

3) Sales Office

A sales office is an organizational unit in sales and distribution which is responsible for sales within a specific geographical area.

4) Sales Area

It is nothing but combination of Sales Organization, Distribution Channel and Division. Only based on the sales area, you will be able to create orders and make despatches.

5) Division
A division is an organizational unit based on responsibility for sales or profits from saleable materials or services.

Divisions have two main applications: They are organizational units for Sales and Distribution, and they are necessary for business area account assignment for logistics transactions in Financial Accounting. Divisions can be used to describe specific product groups and can form the basis for sales statistics, for example.

Divisions are not used for any functions developed specifically for SAP Retail. However, a single dummy division is provided where necessary.

6) Sales Group

A group of sales people who are responsible for processing sales of certain products or services.

By using sales groups you can designate different areas of responsibility within a sales office. When you generate sales statistics, you can use the sales group as one of the selection criteria.

For example, If sales office personnel service both retail and wholesale markets, you can assign a sales group to each market


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