How To Map The Elements Of The SAP SD Organizational Structure
The sales & distribution (SD) module in SAP allows the supply chain process for the business to be mapped into the software. SAP provides various components like the sales area, distribution channel, division, etc. for setting up the sales and distribution organizational structure. The sales and distribution enterprise structure does not exist in isolation from the rest of the modules in SAP. The sales and distribution module is closely integrated with the other modules like FI and MM. SAP best practices dictate that a good organizational structure must meet the company’s current needs and at the same time must be flexible enough to incorporate any future requirements. This makes the organizational structure scalable and ready to change with the growth of the company.
The sales and distribution organizational structure is set in two steps. First of all the organizational elements are created and then they are linked to each other by specific assignments. For e.g. a sales organization is created first, and then it is assigned to a company code.
Concept Of A Sales Organization
A sales organization is the highest entity in the sales and distribution organizational structure. A sales organization represents the sales department in a company and is primarily responsible for the sale and distribution of its products and services. A sales organization needs to be mentioned while creating any sales related documents and needs to be assigned to a company code. The other sales and distribution organizational elements are assigned to the sales organization.
As a part of the best SAP business practices, it is recommended to keep the number of sales organizations to a minimum. Ideally there should be only a single sales organization for a single company code. Having a single sales organization makes the reporting process simple.