Why Do We Assign Division to Sales Organisation

In SAP, why do we assign division to Sales organisation not to distribution channel?

  In SAP Business Process 

  Sales Area= Sales Org.+Dist.Channel+Division.

  Its Triangular intraction

                          Sales organization
                               /                 \
                             /                     \
     Dist.Channel<----------------->Division
 

Sales Org controls Distribution Channel and Division

Distribution Channel: The channel that is choosen the organization to make their product reach the end customer. (Network)

Division: Ex: HLL-------->  Detergents, Out of Home,Food Products,Health Care Sectors/Departments 
              TATA Motars: Trucks/Bus,Cars,Heavy Vechiles Etc...
 

Please note it is not:

    Sales organization
            |
            | 
    Dist.Channel
            |
            |
      Division
 

Division is an Organizational Unit.

The Division in the Material Master is not an Organizational Unit that can be used to maintain related fields.  It is a field which is used to uniquely assign a material to a Division.
 

Customizing for Division assign to Sales Organization

Enterprise Structure -> Assignment -> Sales and Distribution 

Do the following 4 entries: 

  • Assign distribution channel to sales organization 
  • Assign division to sales organization 
  • Set up sales area 
  • Assign sales organization - distribution channel - plant

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