Introduction to SAP SD Corporate Structure
SAP Sales and Distribution (SD) is a crucial module for managing business transactions related to sales, shipping, and billing. A well-structured corporate hierarchy in SAP ensures seamless operations, allowing businesses to process transactions effectively.Understanding Enterprise Organization Diagram
SAP provides an enterprise organization diagram to illustrate the relationships between different organizational units. These units work together across various modules like Material Management (MM), Financial Accounting (FI), and Sales & Distribution (SD).Key Organizational Elements in SAP SD
SAP SD consists of several key organizational elements that define how sales and distribution processes function.- Sales Organization – Handles product sales, distribution, and contract negotiations.
- Distribution Channel – Determines how products or services reach customers (e.g., retail, wholesale).
- Division – Categorizes product groups and enables customer-specific agreements.
Sales Area and Its Components
A Sales Area consists of three main components:- Sales Organization – Represents the entity responsible for sales transactions.
- Distribution Channel – Defines how products are delivered to customers.
- Division – Groups products based on type and marketing strategy.
Internal Organizational Elements in Sales Organization
Sales Office: Represents geographical business units within a sales organization. Helps manage sales operations based on location.Sales Group: Further subdivision within a sales office. Often aligned with specific product categories.
Salespersons: Individual employees responsible for customer interactions and order processing.
Business Area in SAP SD
The business area in SAP SD is an organizational unit used to track revenue and expenses.- Business Areas and Financial Accounting (FI) – Business areas can be used for financial reporting and analysis.
- Assignment Options – Business areas can be linked to sales areas or plants and divisions.
Relationship Between Sales Organizations and Company Codes
- A Sales Organization can belong to only one company code.
- A Company Code can have multiple sales organizations.
- This is a many-to-one relationship.
Credit Control Area and Its Importance
- Credit Control Area manages customer credit limits.
- A Company Code can only be assigned to one Credit Control Area.
- A Credit Control Area can oversee multiple Company Codes.
Shipping in SAP SD
- Shipping Point: A fixed location where shipping activities take place.
- Each delivery must be processed through one shipping point.
Understanding Plants in SAP
A Plant is a critical entity in SAP logistics, responsible for production, procurement, and storage.- Acts as a manufacturing facility.
- Functions as a retail/wholesale site.
- Serves as a storage location for inventory management.
Conclusion
SAP's corporate structure ensures efficiency and clarity in business operations. Understanding Sales Organizations, Plants, Distribution Channels, and Shipping Points is essential for configuring SAP SD.