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
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.
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.
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 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
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
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.
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
>> Path for Assignment of SAP SD - Enterprise Structure Organization units :
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.
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.
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.
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.
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.
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.
Assign Business Area to Plant And Division
STEP : Click on New Entries and Provide Plant to Division to Business Area.
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
STEP 2 : Select your Plant > Click on "Assign" and select Shipping Point and SAVE.
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.
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