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Unit 14
Sales and Distribution (SD)
- Organizational Structures -
January 2008© SAP AG - University Alliances and The
Rushmore Group, LLC 2008. All rights reserved.
2
Business Process Integration
SD
Org
Dat
a
January 2008© SAP AG - University Alliances and The
Rushmore Group, LLC 2008. All rights reserved.
3
Organizational Data
• A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions
• Are static data and are rarely changed • The definition of organization units is a
fundamental step, it is a critical factor in how the company will be structured
January 2008© SAP AG - University Alliances and The
Rushmore Group, LLC 2008. All rights reserved.
4
R/3
FIFinancialAccounting
COControlling
PSProjectSystemWF
WorkflowISIndustrySolutions
MMMaterials Mgmt.
HRHumanResources
SDSales and Distribution
PPProductionPlanning
QMQualityMgmt.PM
Plant Maintenance
SMServiceMgmt.
Client / ServerIntegrated BusinessSolution
ECEnterpriseControlling
AMFixed AssetsMgmt.
Sales and Distribution (SD)
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Rushmore Group, LLC 2008. All rights reserved.
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Components of Sales and Distribution
Sales andDistribution(SD)
SalesSupport
Sales
CreditMgmt.
ShippingTransport
Billing
ForeignTrade
SalesInformationSystem
MasterData
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Sales Organization
• Sales Organization– Sells and distributes products– Negotiates terms of sales– Responsible for these business transactions
• Critical organization element to the definition of business markets
• A sales transaction is linked to only one Sales Organization
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Rushmore Group, LLC 2008. All rights reserved.
7
Sales Organization – (continued)
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Rushmore Group, LLC 2008. All rights reserved.
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Distribution Channel
• Identifies how products and services reach the customer
• Can be assigned to one or more Sales Organizations
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Rushmore Group, LLC 2008. All rights reserved.
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Distribution Channel – (continued)
Retail DistChannel (RE)
Wholesale DistChannel (WH)
US SalesS000
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Rushmore Group, LLC 2008. All rights reserved.
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Division
• Often times used to define product line distribution
• Organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery)
• Assigned to one or more Sales Organizations
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Rushmore Group, LLC 2008. All rights reserved.
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Division – (continued)
Medical Division Chemical Division
US SalesS000
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Sales Area
• Sales Area comprised of: – Sales Organization– Distribution Channel– Division
• Will be used to link together the organizational aspects of sales to customers
• Used for statistical analysis
January 2008© SAP AG - University Alliances and The
Rushmore Group, LLC 2008. All rights reserved.
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Sales Area – (continued)
Retail DistChannel (RE)
Wholesale DistChannel (WH)
US SalesS000
MedicalDivision
ChemicalDivision
MedicalDivision
ChemicalDivision
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Rushmore Group, LLC 2008. All rights reserved.
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Sales Area – (continued)
Retail DistChannel (RE)
Wholesale DistChannel (WH)
US SalesS000
MedicalDivision
ChemicalDivision
MedicalDivision
ChemicalDivision
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Rushmore Group, LLC 2008. All rights reserved.
15
Internal Sales Organization
• Typically defines a territory or market• Linked to one or more Sales Areas• Optional organization structure
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Rushmore Group, LLC 2008. All rights reserved.
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Sales Office
Eastern Sales Western Sales
US SalesS000
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Rushmore Group, LLC 2008. All rights reserved.
17
Sales Group
• Sales Group– Sub-division of a sales office, territory or market
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Rushmore Group, LLC 2008. All rights reserved.
18
Sales Person
• Sales Person– Defined in Human Resources (HR) — Personnel
Admin.– Specifically defines an individual rather than a
position (sales rep.) in sales processing
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Rushmore Group, LLC 2008. All rights reserved.
19
Internal Sales Organization
Eastern Sales Western Sales
US SalesS000
NortheastSales Group
SoutheastSales Group
NorthwestSales Group
SouthwestSales Group
Salesperson1
Salesperson4
Salesperson3
Salesperson6
Salesperson5
Salesperson8
Salesperson7
Salesperson2
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Rushmore Group, LLC 2008. All rights reserved.
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Shipping and Loading Points
• Shipping Point– Location that performs all delivery related
activities– A delivery can be processed from only one
shipping point• Loading Point– A subdivision of the shipping point used for more
specialized handling
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Rushmore Group, LLC 2008. All rights reserved.
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Shipping Organization
PlantP000
Freight DockFD00
Express DockED00
Rail DockRD00
LoadingPoint 3
LoadingPoint 2
LoadingPoint 1
LoadingPoint 4
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Rushmore Group, LLC 2008. All rights reserved.
22
114. Create Sales Organization 115. Assign Sales Organization to Company Code116. Define Distribution Channels 117. Assign Distribution Channels to Sales Organization118. Define Division119. Assign Division to Sales Organization120. Setup Sales Areas121. Define Common Distribution Channels122. Define Common Divisions
Unit 14, Group 1 – Exercises
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Unit 14, Group 2 – Exercises
123. Define Loading Groups 124. Create Shipping Point125. Assign Plant to Sales Organization and Distribution
Channel126. Assign Shipping Points to Plant