SAP SD Sales Organizational Structure

Sales Organizational Structure

Within SAP there is an organizational structure that exists for the sales and distribution module.

The highest level of this is the sales organization, which is responsible for the sale and distribution of goods and services. The sales organization is a legal entity and is associated with one company code, but a company code can have a number of sales organizations assigned to it. On the logistics side, a sales organization can sell products for more than one plant, and a plant can have more than one sales organization selling its products. It can be subdivided into a number of distribution channels which helps a sales force on getting the right products to the right customers at the right price.

The distribution channel that can be defined will depend on the products that a company sells, for example you can have channels that represent wholesalers, distributors, or direct sales. A good distribution channel strategy will help your company to increase sales, improve sales and marketing coverage, and reduce your costs across the sales function.

For each sales organization there can be one or many sales divisions. The role of the sales division is to structure the sales resources within the sales organization. The resources in a sales division are focused on a single customer or group of similar customers.
Sales Organization Chart.

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