

This module is closely integrated with other modules of R/3 systems like Finance Accounting and Controlling, Sales and Distribution, Quality Management, Product Planning. Material Management is one of the key modules in SAP ERP System and covers the day to day business operations related to inventory and procurement. The following diagram shows the organizational structure of a Sales and Distribution module − Material management In the first step of an SD organizational structure, sales organization is assigned to a company code and then is to define a distribution channel and then division to a sales organization. Then the distribution channel and divisions are assigned to sales organization and all of these comprise to make a sales area. In SAP SD organizational structure, each sales organization is assigned to a company code. It comprises of sales organization, distribution channel and a division. Division in an organizational structure, which represents a product or service line in a single organization.Ī sales area is known as entity, which is required to process an order in a company. The next level is distribution channel, which tells the medium by which the products and services are distributed by an organization to its end users. This will help in making the reporting process easy and ideally it should have a single sales organization. SAP recommends to keep the number of sales organization in an organizational structure to be minimum. On top of this organization structure in the SD module, sales organization is at highest level and is responsible for distribution of goods and services. second is to link each element as per requirement.Creation of Organization elements in SAP system, and.The SAP SD organization structure majorly consists of two steps − SAP provides many components to complete SAP Sales and Distribution organizational structure like Sales Areas, Distribution Channels, Divisions, etc. SAP Sales and Distribution Cycle SAP SD - Organizational Structure The key components in SAP Sales and Distribution module are − This module is closely integrated with other modules like SAP Material Management and PP.

SAP Sales and Distribution module is a part of SAP Logistics module that manages customer relationship starting from raising a quotation to sales order and billing of the product or service. SAP Sales and Distribution is one of the key components of SAP ERP system and is used to manage shipping, billing, selling and transportation of products and services in an organization.
