Division can be assigned to one or more distribution channels. Divisions can be assigned to Sales organization and multiple divisions assigned to single sales organization. Sales office can be assigned to division. The link between division and sales organization can be established through assignment.
Category Archives: SAP SD
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 Area can be assigned to credit control area. Multiple sales areas can be assigned to one or multiple credit control areas. Assigning sales area to credit control area establishes the link between the sales area and credit control area.
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 office can be assigned to sales area and multiple sales offices can assign to a Sales Area. The link between the sales office and sales area can be established through assignment.
Sales Group is the group of sales persons working for various purposes. Sales Group is an optional element in SAP SD organization structure. Sales Group mainly used to manage work force. Sales group can be assigned to the Sales Office and multiple Sales Groups can assign to One Sales Office.
Every customer has a limit to purchases the products from the company in case of credit purchases. Customer can’t buy any products beyond the credit limit. If the customer needs to buy more products and is approved, then the customer credit limit needs to be increased.
Credit group specifies the transactions that are to be blocked for processing when the credit limit exceeds. Credit group created for each variation in the document type.
Once the credit group is created, the sales documents and delivery types need to be assigned to credit group for checking customer limits. The link between the sales documents and delivery types can be established through assignment. Without assignment the system can’t able to verify the customer limits while creating sales documents.
In some scenarios, it is required to categorize the customers based on their payments history, track records etc.