1. Organization
Structure

2. Organization Structures
Client
Company Code
Sales Organization
Distribution Channels
Division
Sales Area
Sales Office
Plant
Shipping Organization

3. Organization Structure
Plant
Group
Storage
location
Department
Product
line
Service company
Company
Subsidiary
SAP
Client
Company code
Storage location
Sales
organization
Division
Distribution
channel

4. Organization Structure
CLIENT
CLIENT
Company code 1
Company code 2
area 1
area 2
Area 1
area 3
area 4
Area 2

5. Company Code Company Code l A company code represents an independent
accounting unit, for example, a company
within a corporate group.
Balance sheets and Profit & Loss Statements,
required by law, are created at the company
code level.

6. Company Code
Company
Code

7. Sales Organization l A sales organization
Is responsible for distributing goods and services.
Is responsible for negotiating sales conditions.
Carries out each business transaction.
Each sales organization is assigned to a company code.

8. Sales Organization
Company
Code
Sales Organization

9. Distribution Channels
are the means through which
sales materials reach the customer.
Distribution channels include: n
Retail trade
Wholesale trade
Direct sales
Wholesale
distributor
Sales
organization
trade
Retail
dealer

10. Distribution Channels
Sales
Organization
1000
10 Wholesale
20 Retail
30 Direct Sales
Distribution Channels
XYZ Company
Retail Outlets

11. Divisions l l A A division division
can be used to segment a business into
can be used to segment a business into
product lines.
product lines. l l
In sales and distribution, the division allows you to
In sales and distribution, the division allows you to
make customer-specific agreements such as:
make customer-specific agreements such as: n n
Partial deliveries
Partial deliveries n n
Pricing agreements
Pricing agreements n n
Special payment terms
Special payment terms
Plant
Plant
Division
Division

12. Divisions
Sales Organization
Divisions
Notebooks
CD-ROM

13. Sales Area l A sales area is the combination of: The
Sales organization
Distribution channel
Division (product-related)
The
is used for reporting and pricing.
Sales Organization
Distribution Channel
Division
Division 1
Division 2
Distribution
Channel 1
Channel 2
Sales Org 1
Sales Org 2

14. Sales Area Company Code Sales Organization Distribution Channel
Client
Company Code
0001
0002
0003
Sales
Organization
1000
2000
3000
4000
Distribution Channel 10 20
Sales Area 1
Division 01 02 01 02
sales office
sales group

15. Sales Office Sales Office 1 Sales Office 2 Watson & Co. Alex Wholesale
Retail Shop 1
David & Don
Alex Wholesale
Retail Shop 2

16. Sales Office & Sales Group
Geographical aspects of the organization in business
development and sales n n n n
A sales office can be considered as a subsidiary n n
Sales offices are assigned to sales areas l l A A
Sales group n n
The staff of a sales office may be subdivided into sales groups

17. Sales Office & Sales Group

18. Plants l A plant is an organizational element within a company. A
plant produces goods, renders services, or makes goods
available for distribution.
A plant can be one of the following types of locations: n
Manufacturing facility
Warehouse distribution center

19. Plants
CLIENT
Company : ABC
Company : XYZ
Plant A
Plant C
Plant B

20. Plant Assignment COMPANY ABC COMPANY XYZ Plant A Sales Organization A

21. Shipping Point l A shipping point is a fixed location that carries out
shipping activities. Each delivery is processed by
only one shipping point.
Plant 1
Plant 2
Shipping
point 2
point 1

22. Shipping Organization
Plant A
Plant B 2
Shipping Point 1
Shipping Point 3