Sunday, June 5, 2011

Sales Area

A sales Area is the Combination of a Sales Organization, Distribution Channel and Division. It defines the distribution channel a sales organization uses to sell products from a certain division.

A sales area can belong to only one company code. This relationship is created by assigning the sales organization. Each sales and distribution document is assigned to exactly one sales area. This assignment cannot be changed.

The relevant master data can usually be maintained explicitly for each sales area, for example:

1)      Sales-relevant customer master data

2)      Sales-relevant material master data (the division is a general field of the material master; as a result, a material can only be assigned to one division.)

3)      Conditions (prices, discounts/surcharges)


Sales Organization:

The sales organization is the highest summation level as far as the entire sales process is concerned, which groups the enterprise according to the requirements of sales and distribution. A sales organization is responsible for distributing goods and services. Therefore, it is also liable for the sold products and responsible for the customers' rights of recourse. One company code can have any number of sales organizations assigned to it. But one sales organization should be assigned to only one company code. So the relationship between company code and sales organization is one to many. All the items in sales and distribution process chain, that is, all order items, outbound delivery or billing documents are belong to a sales organization. You maintain your own master data for a sales organization

To define a sales organization:

IMG à Enterprise Structure à Definition à Sales and Distribution à Define, Copy, Delete, Check sales organization à Define Sales Organization à Click on New Entries on the application toolbar à Define your Sales Organization by filling the data in the required fields

After entering the relevant data Save and Exit

Distribution Channel:

Distribution channel is the means through which organization sells its products to its customers. Several distribution channels can be assigned to a sales organization.

Distribution channel is used:

1)      Define responsibilities,
2)      Achieve flexible pricing and
3)      Differentiate sales statistics.

Examples for Distribution Channel: Wholesale trade, Retail trade, Online sale, sales to industrial customers or direct sales from a plant etc..

You can vary the master data relevant to sales, such as customer master data, material master data, prices, and surcharges/discounts, for each sales organization and distribution channel.

To define a Distribution Channel follow the menu path

IMG à Enterprise Structure à Definition à Define, Copy, Delete, Check distribution channel à Define distribution channel à Click on New Entries on the application toolbar à Define your distribution channels by filling the data in the required fields

After entering the relevant data Save and Exit

Division

A division represents a product group or a product line. A sales organization can have several divisions assigned to it, for which it is responsible. The system uses the division to determine the sales areas a material or a service is assigned to.

You can make customer-specific agreements for each division, for example regarding partial deliveries or pricing. Within a division, you can carry out statistical analyses or devise your own marketing strategies.

To define a Division follow the menu path:

IMG à Enterprise Structure à Definition à Logistic – General à Define, Copy, Delete, Check division à Define division à Click on New Entries on the application toolbar à Define your division by filling the data in the required fields

After entering the relevant data Save and Exit.

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