SAP enterprise structure is organizational structure that represents entire business structure in SAP R/3 system. It consists of some organizational units are mapped to business structure based on some business requirements such as Company Code, Plants, Storage Locations, Sales Organizations, Distribution Channels, Divisions, Sales Offices, Sales Groups, Sales Persons, Shipping Points, Loading Points.

Various SAP organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle specific business functions. Organizational units may be assigned to a single module.

Below are the organizational units related to SAP SD module -

• Sales Organization
• Distribution Channel
• Division
• Sales Group
• Sales Office
• Sales Area

Sales Organization: -

Sales Organization is the top most organizational unit in sales and distribution module. Sales Organization is responsible for all the activities or services that happen in the Client or Company. Sales Organization used to distribute products and services.

Sales Organization can be used as selection criteria for listing of sales document as well as for creating delivery and billing worklist. User can define different output types for sales and billing document for each Sales Organization.

Sales Organization should assign to one Company code where the company code can have multiple Sales Organizations assigned. Sales Organization can be assigned to one or more plant and Multiple Sales Organizations can be assigned to one plant.

Distribution Channel: -

Distribution Channel is the process of distributing the goods and/or services to the customers. Distribution Channel can be used as selection criteria for creating lists.

One or more distribution channel can serve the same customer within the sales organization. One distributed channel master data can be used by other distribution channel.

Multiple sales document types can be defined to the distribution channel. The items in delivery and billing documents of one distribution channel can belong to the other distribution channel. Distribution Channel can be assigned to one or more Sales Organization.

Division: -

Division is products or range of products or a group of products. Divisions assign to the Sales Organization and multiple divisions can be assigned to Sales Organization. Materials or products always belong to one division.

Master data can vary from division to division and can use the same if shared master data created. Item in delivery or billing of one division can belong to another division.

Sales document and delivery worklist can create by using division as selection criteria. Division can be assigned to one or more distribution channels. Sales office can be assigned to division.

Sales Group: -

Sales Group is the group of sales persons working for various purposes. Sales group can be assigned to the Sales Office and multiple Sales Groups can assign to One Sales Office.

Sales Office: -

Sales Office is an organizational unit which can use as a branch. Sales Office contains group of sales persons working to perform the direct or indirect sales. Sales office can be assigned to sales area and multiple sales offices can assign to a Sales Area.

Sales Area: -

Sales Area plays an important role while processing sales. Sales Area defines the sales organization distribution channel uses to sell the products from the specific division.

Sales Area is a combination of Sales organization, distribution channel and Division which is like shown in the diagram. Sales document, delivery document and billing document is always assigned to Sales Area.

Each Sales and Distribution document is assigned to only one Sales Area. Sales Area is used for reporting and pricing. Sales Area belongs to only one Company Code.