What is the definition for sales organization?

A sales organisation is an organisation of individuals either working together for the marketing of products and services manufactured by an enterprise or for products that are procured by the firm for the purpose of reselling.

Where is sales organization in SAP?

Define SAP Sales Organization Now, let’s define a new SAP sales organization by accessing the following menu path in customizing: SPRO > Enterprise Structure > Definition > Sales and Distribution > Define, copy, delete, check sales organization.

What is sales organization and distribution channel in SAP?

The distribution channel is the channel through which saleable materials or services reach the customer. Distribution channels include selling to consumers through various types of retail outlet or via mail order.

What is the difference between sales organisation and sales area?

Sales Organisation is the organisational unit which responsible for the selling of the product, movement of goods to the customer, customer right of course. Sales Area is the combination of the Sales: Organisation + Distribution Channel + Division.

What is the purpose of sales organisation?

A sales organization subsists of a group of people who handle different activities like distribution, advertising selling etc. It works to achieve the sales objectives, like increasing sales volume and maximizing profit and market share of the company.

What are the major types of sales organization?

There are four main types of sales organizational structures:

Functional Structure.
Geographic Structure.
Market-Based Structure.
Product Sales Force Structure.

What is sales organization structure?

Sales organization structure refers to the segmentation of your sales team into specialized groups. How you organize your sales team will be determined by the regions you serve, the number of products and services you offer, the size of your sales team, and the size and industry of your customers.

What is the business area in SAP?

Business areas are used in external segment reporting (over and above company codes), based on the significant areas of operation of a company (for example, product lines, branches). If you have defined business areas, the transaction figures for the G/L accounts are managed separately for internal evaluation purposes.

What is a division in SAP?

Division is used to group good and services of certain nature that share some common traits or properties. It also serves and represents product lines of your business. When executing sales business processes in SAP Sales and Distribution, at least one division should be available in the SAP system.

How do you assign a plant to sales organization in SAP?

Assign Sales organization, Distribution Channel, Plant in SAP

Step 1) Enter T-code SPRO in command field as shown below and enter.
Step 2) In next screen execute project, click on SAP Reference IMG.
Step 3) On display IMG screen, navigate the menu path and choose assign sales organization – distribution channel – plant.

How is a sales organization defined in SAP?

Sales organizations are defined in SAP based on the company sales requirement. Sales organization controls terms of sales to the customers, negotiating sales, etc. It can assigned to only one company code and one or more plants. Configurationof Sales Organization in SAP SD IMG Menu Path :-

What are the duties of a sales organization?

Sales Organization is responsible for devising sales strategies which are to be executed to gain market share. If there are any Customer’s complaints regarding the goods and services which the company primarily is responsible for, all such queries and complaint handling is done at Sales Organization level.

Which is the highest level of organizational structure in SAP?

Sales Organization in SAP Sales & Distribution module is the highest level in organizational structure and is primarily responsible for carrying out and monitoring sales. Sales Organization is responsible for devising sales strategies which are to be executed to gain market share. If there are any Customer’s…

How to create a sales office in SAP?

You can use the SD system without creating sales groups. The definition of sales offices is optional. You can use the SD System without creating sales offices. -> You assign a sales office to one or more sales areas. If you want to go deeper of how to customize Sales Organization in SAP, check this link.