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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

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