Sales Organization/Distribution Channel/Division

1-Define Sales Organization
2-Define Distribution Channel
3-Define Division
4-Define Sales Office
5-Define Shipping Point
6-Define Transportation Planning Point
7-Assign Sales Organization to Company Code
8-Assing Distribution Channel to Sales Organization
9-Assign Division to Sales Organization
10-Set up Sales Area
11-Assign Sales office to Sales Area
12-Assign plant to Sales Organization and Distribution Channel
13-Define Sales Group
14-Define Credit Control Area
15-Assign Company Code to Credit Control Area
16-Assign Shipping Point to Plant


1.Sales Organization:
In SAP SD terminology, a Sales Organization can be compared to an organizational unit that sells & distributes goods, can negotiate terms and conditions of sale, and can carry out such related transactions.

Related to the concept of a Sales organization is Distribution channel. A distribution channel is a channel through which materials or services reach the end users. Thus, for a Sales organization, distribution channels that could be defined in SAP can include wholesale, retail, and direct sales.

SAP SD allows a user to define and assign a distribution channel to one or more sales organizations. Thus, a customer can be delivered goods from a variety of distribution channels that have been defined. A user can view master record by different sales organization and by different distribution channel. This enables a user to view data according to his needs.

The menu path for defining a Sales Organization in SAP is as under:

IMG Enterprise structure >> Maintain structure >> Definition >> Sales and Distribution
t-code: OVX5

2-Define Distribution Channel
Customizing path:
IMG > Enterprise Structure > Definition > Sales and Distribution > Define,copy,delete,check, distribution channel
t-code: OVXI

3-Define Division
Customizing path:
IMG > Enterprise Structure > Definition > Logistic-General > Define , copy, delete, check division
t-code: OVXB

4-Define Sales Office
Customizing path:
IMG > Enterprise Structure > Definition > Sales and Distribution > Maintain Sales Office
t-code: OVX1

5-Define Shipping Point
Customizing path:
IMG > Enterprise Structure > Definition > Logistic Execution > Define, copy, delete, check shipping point
t-code: OVXD

6-Define Transportation Planning Point
Customizing path:
IMG > Enterprise Structure > Definition > Logistic Execution > Maintain transportation planning point
t-code: OVXT

7-Assign Sales Organization to Company Code
Company Code is defined by FI.
Customizing path:
IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign sales organization to company code
t-code: OVX3

8-Assing Distribution Channel to Sales Organization
Customizing path:
IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign distribution channel to sales organization
t-code: OVXK

9-Assign Division to Sales Organization
Customizing path:
IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign division to sales organization
t-code: OVXA

10-Set up Sales Area
Customizing path:
IMG > Enterprise Structure > Assignment > Sales and Distribution > Set up Sales Area
t-code: OVXG

11-Assign Sales office to Sales Area
Customizing path:
IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign Sales office to Sales Area
t-code: OVXM

12-Assign plant to Sales Organization and Distribution Channel
Customizing path:
IMG > Enterprise Structure > Assignment > Sales and Distribution > Assign Sales organization – Distribution Channel – Plant
t-code: OVX6

13-Define Sales Group
Customizing path:
IMG > Enterprise Structure > Definition > Sales and Distribution > Maintain Sales Group
t-code: OVX4

14-Define Credit Control Area
Customizing path:
IMG > Enterprise Structure > Definition > Financial Accounting > Define Credit Control Area
t-code: OB45

15-Assign Company Code to Credit Control Area
Customizing path:
IMG > Enterprise Structure > Assignment > Financial Accounting > Assign company code to credit control area
t-code:OB38

16-Assign Shipping Point to Plant
Customizing path:
IMG > Enterprise Structure > Assignment > Logistic Execution > Assign shipping point to plant
t-code: OVXC

Company Code

Company Code

Company code is legal entity where Organization Balance Sheet and Profit & Loss accounts maintained.
Example:
Company: Reliance group of organizations
Company Code: Reliance Petrolium(CC01),
Reliance Fresh(CC02),
etc.,
Technically speaking, Reliance have to submit its TAX returns for each Company Code.