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Sales Organization: In SAP SD terminology, a Sales Organization can be compared to an organizational unit that sells & distributes goods, can negotiate terms and conditions of sale, and can carry out such related transactions. Related to the concept of a Sales organization is Distribution channel. A distribution channel is a channel through which materials or services reach the end users. Thus, for a Sales organization, distribution channels that could be defined in SAP can include wholesale, retail, and direct sales. SAP SD allows a user to define and assign a distribution channel to one or more sales organizations. Thus, a customer can be delivered goods from a variety of distribution channels that have been defined. A user can view master record by different sales organization and by different distribution channel. This enables a user to view data according to his needs. The menu path for defining a Sales Organization in SAP is as under: IMG Enterprise structure >> Maintain structure >> Definition >> Sales and Distribution t-code: OVX5 2-Define Distribution Channel Customizing path: IMG > Enterprise Structure > Definition > Sales and Distribution > Define,copy,delete,check, distribution channel t-code: OVXI 3-Define Division Customizing path: IMG > Enterprise Structure > Definition > Logistic-General > Define , copy, delete, check division t-code: OVXB 4-Define Sales Office Customizing path: IMG > Enterprise Structure > Definition > Sales and Distribution > Maintain Sales Office t-code: OVX1 5-Define Shipping Point Customizing path: IMG > Enterprise Structure > Definition > Logistic Execution > Define, copy, delete, check shipping point t-code: OVXD 6-Define Transportation Planning Point Customizing path: IMG > Enterprise Structure > Definition > Logistic Execution > Maintain transportation planning point t-code: OVXT 7-Assign Sales Organization to Company Code Company Code is defined by FI. Customizing path: IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign sales organization to company code t-code: OVX3 8-Assing Distribution Channel to Sales Organization Customizing path: IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign distribution channel to sales organization t-code: OVXK 9-Assign Division to Sales Organization

Customizing path: IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign division to sales organization t-code: OVXA 10-Set up Sales Area Customizing path: IMG > Enterprise Structure > Assignment > Sales and Distribution > Set up Sales Area t-code: OVXG 11-Assign Sales office to Sales Area Customizing path: IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign Sales office to Sales Area t-code: OVXM 12-Assign plant to Sales Organization and Distribution Channel Customizing path: IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign Sales organization Distribution Channel Plant t-code: OVX6 13-Define Sales Group Customizing path: IMG > Enterprise Structure > Definition > Sales and Distribution > Maintain Sales Group t-code: OVX4 14-Define Credit Control Area Customizing path: IMG > Enterprise Structure > Definition > Financial Accounting > Define Credit Control Area t-code: OB45 15-Assign Company Code to Credit Control Area Customizing path: IMG > Enterprise Structure > Assignment > Financial Accounting > Assign company code to credit control area t-code:OB38 16-Assign Shipping Point to Plant Customizing path: IMG > Enterprise Structure > Assignment > Logistic Execution > Assign shipping point to plant t-code: OVXC

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