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Writer's pictureADHARSH K S

SAP SD - Enterprise Structure

The SAP Sales & Distribution components define how sales-related data is organized and processed within the system. The SAP SD - Enterprise Structure includes key organizational elements such as: Plant, Sales Organization, Distribution Channel, Division, Sales Area, Shipping Point, Storage Location, Sales Office and Sales Group.


SAP SD - Enterprise Structure Configuration Steps


>> Path to Define SAP SD - Enterprise Structure Organization units

SAP SD Enterprise Structure

Plant in SAP

A Plant is an organizational unit that plays a key role in logistics, production, and material management processes. It is used to represent a physical location or facility, such as a manufacturing site, warehouse, distribution center, or service location.


STEP : Click on New Entries and Provide the 4-Digit code for Plant, Country/Region Key, Language Key and SAVE.

Plant in SAP

Division in SAP

Division is an organizational unit used primarily in Sales and Distribution (SD) to differentiate between product or service lines within a company. A division represents a specific product category or service that a company offers, allowing businesses to manage and report on sales activities separately for each product line.


STEP : Click on New Entries > Enter 2-Digit code for Division, Name and SAVE.

Division in SAP

Sales Organization

A Sales Organization is a key organizational unit within the Sales and Distribution module. It represents the highest level of grouping in sales, and it is responsible for distributing goods and services to customers.


STEP : Click on New Entries > Enter 4-Digit code for Sales Org, Name and SAVE

Sales Organization in SAP

Sales office

It represents a physical or geographical location, such as a regional sales office or branch, that is responsible for coordinating sales activities in a particular area.


STEP : Click on New Entries > Enter 4 -Digit Code for Sales office with Description and SAVE

Sales office in SAP

Distribution Channels

It defines how products or services are delivered to customers. It represents the various ways or channels through which goods reach customers, allowing businesses to manage different sales strategies for different markets.


STEP : Click on New Entries > 2-Digit code for Distribution Channel with Description and SAVE

Distribution Channel in SAP

Shipping Points

It is a physical location or organizational unit responsible for processing and executing shipping activities within the logistics module.

Shipping points are determined automatically during order creation based on:

  • Plant

  • Shipping condition from the customer master or sales document

  • Loading group from the material master


STEP : Click on New Entries > Enter 2-Digit code for Shipping Point with Description, Factory Calendar and SAVE.

Shipping Point in SAP


Sales Group

It represents a subdivision of a Sales Office and is used to organize and manage sales activities based on regions, departments, or product groups. The sales group is generally associated with a team of sales personnel.


STEP : Click on New Entries > provide 2-Digit code for Sales Group with Description and SAVE

Sales Group in SAP

>> Path for Assignment of SAP SD - Enterprise Structure Organization units :

SAP SD Enterprise Structure

Assignment of Plant to Company Code

The plant must be assigned to a company code so that it can be linked with other organizational units (such as the sales organization, distribution channel, and storage location) and to ensure that financial transactions can be properly tracked for that plant.


STEP : Click on New Entries and Provide Company Code to Plant and SAVE.

Plant to Company Code

Assignment of Sales Organization to Company Code

This establishes a link between the SD and FI systems. A sales organization belongs to just one company code.


STEP : Click on New Entries and provide Sales Org. to Company Code and SAVE.

Sales Organization to Company Codes

Assignment of Sales Organization to Distribution Channel

This assignment helps define how products or services are distributed to customers through different channels under a specific sales organization.


STEP : Click on New Entries and provide Sales Org. to Dist. Chnl and SAVE.

Sales organization to distribution channel

Assignment of Sales Organization to Division

We allocate as many divisions as desired to a sales organization. Any one division can belong to several sales organizations


STEP : Click on New Entries > Provide Sales Org. to Division and SAVE.

Sales Organization to division

Setup Sales Area

This assignment helps ensure that the sales processes are structured correctly based on the organizational setup, product lines, and the channels through which products are sold.


STEP : Click on New Entries and Provide Sales Org. to Dist. Chnl to Division.

Sales Area

Assignment of Sales Organization to Distribution Channel to Plant

This assignment enables the sales organization to ship goods from a particular plant using a specific distribution channel.


STEP : Click on New Entries and Provide Sales Org. to Dist. Chnl to Plant.

Sales Organization to Distribution Channel to plant

Assign Business Area to Plant And Division


STEP : Click on New Entries and Provide Plant to Division to Business Area.

Business Area to plant to Division

Assign Shipping Points to Plants

Shipping Point must be linked to a plant to manage the shipping and delivery processes for materials stored or produced at that plant.


STEP 1 : Press Ctrl + F Key and Find your Plant

Shipping Point to Plant

STEP 2 : Select your Plant > Click on "Assign" and select Shipping Point and SAVE.

Shipping point to plant


Proper configuration of the enterprise structure not only streamlines the sales order processing, delivery, and billing processes but also facilitates seamless integration with other SAP modules like Finance, Materials Management, and Production Planning.


Thank You for your time to read my blog, stay tuned for more insightful blogs




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The enterprise structure in the SAP SD module is the backbone for defining the framework of the company in SAP, but it organizes elements such as sales organizations, distribution channels, and divisions necessary to conduct and manage sales processes effectively. Business people who have experience in the field and write on this topic can relate easily to how these structures need to be cautiously set up so that all transactions are oriented toward the goals of the company. Similarly, in specifically complex projects, such as an English Literature dissertation, a good structure that is prominent and well-organized provides for a basic necessity. Such would be established with the help of an online English Literature dissertation writing service.

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