SAP Questions: Organizational Units in SD

December 10, 2009 by CRM
Filed under: Sale and Distribution 


Organizational units in the SAP R/3 System represent the structure of an enterprise organization. Which organizational units represent only SAP sales and distribution?

  • Sales Area
  • Sales organization
  • Distribution channel
  • Division
  • shipping point

The combination of sales organization, distribution channel and division makes a sales area.
Apart from these, there are also other organizational units that are used for sales and distribution. Other organizational units, such as company code, plant, or storage location, are not only used by sales and distribution, but also by other modules (for example, financial accounting, materials management, or production).

Which organizational unit can you use in the R/3 system to represent a sales facility or a sales subsidiary?

  • Sales organization

Which organizational units can you use in the R/3 System to represent a means to ship goods to the customer (for example, factory sales, whole sales trade, or retail trade)?

  • Distribution channelĀ 

Which organizational units can you use in the R/3 System to represent multiple product lines and to group materials (for example, vehicles, accessories, or spare parts)?

  • Division

Which organizational units can you use in the R/3 System to organize and process outbound deliveries from different places (for example, loading ramp or rail depot)?

  • shipping point

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