Setting Up the Sales Organization - SAP SD

The first step in setting up a sales structure in SAP is to set up a sales organization.A sales organization in SAP represents the selling entity of your client’s organization. It is the highest level in the SD enterprise structure and the one to which all the other building blocks are assigned. A sales organization has its own master data. All sales-related transactions are executed within the framework of a sales organization. When you create a customer master or a material master, you must provide the sales organization for which you are creating this master data. You must even enter a sales organization while creating the sales order document in SAP.“Introduction to Sales and Distribution,” which shows sales organization 9090 on the order entry screen.) During processing of the sales cycle, the sales organization information gets copied over from order to deliveryto billing and also helps you determine the company code while posting the sales transaction to accounting.

It is always advisable to keep the number of sales organizations to a minimum. You should only create multiple sales organizations when two or more selling entities operate on a totally different basis or when there is a legal requirement to have multiple sales organizations. For example, an organization running sales operations from multiple countries may end up having one sales organization for each country where it operates. Each of these sales organizations will then be assigned to the company codes that wereset up for those countries.

Defining a Sales Organization

To create your own sales organization, use transaction code OVX5 or follow menu path IMG > Enterprise Structure > Definition > Sales And Distribution. Click the Execute button next to Define, Copy, Delete, Check Sales Organization. Following the Menu Path, you will be presented with the Choose Activity screen, providing you with the following two methods to define your own sales organization.

Choose Activity screen for defining a sales organization

Choose Activity screen for defining a sales organization

Define Sales Organization

Make this selection when you want to set up a new sales organization without copying it from any existing ones. You will have to manually enter all the required information to define your own sales organization.

Copy, Delete, Check Sales Organization

Select this when you want to set up your sales organization by copying it from an existing sales organization. With this copy option, you can copy the complete sales organization structure from the source sales organization to the target sales organization. This is really useful in scenarios where the source sales organization structure closely resembles the target sales organization structure. You can also use this option to check and delete an existing sales organization structure. We will cover this method in detail when we set up our Mexican sales organization (9091) for Galaxy Musical Instruments.

We’ll define our first sales organization, “Galaxy Musical Instruments US (9090),” using Define Sales Organization option. Select Define Sales Organization, and click the Choose button at the bottom of the screen You now should see the sales organization configuration screen,

Overview screen for defining a sales organization

Overview screen for defining a sales organization

Here again, you are provided with the option to either create your own sales organization by using the New Entries buttonor by using the Copy but ton. Using the New Entries button provides you with a blank form where you fill in all the relevant details such as the name, address, and so on, for your sales organization. Using the Copy button will open a prefilled form with the name, address, and other information copied from the source sales organization. Depending upon your needs, you can completely or partially replace the information provided via the copy option and save your entry to create your sales organization. Let’s use the Copy button to create our first sales organization.

Now select the source, sales organization 1000, and click the Copy button.You will be presented with a screen but with the values from sales organization 1000. Replace the data on the screen with what you want to maintain for your sales organization. We changed the values to repre sent the Galaxy Musical Instruments USA sales organization (9090).

Defining the sales organization, Details screen

Defining the sales organization, Details screen
Sales Organization

Here you provide a four-character identifier and a description for your sales organization. This field is alphanumeric, which means that you can define the identifier key with only numbers, only alphabets or with a combination of numbers and alphabets.

Statistics Currency

Here you set the default statistical currency for your sales organization. When you generate sales statistics, the system uses this currency to report the statistics. Because it is a default, this currency can be overwritten during statistical reporting.

Content for form text modules

Address Text Name, Letter Header Text, Footer Lines Text, Greeting Text Name, and Text SDS Sender are five fields available in sales organization customization where you assign the text modules that carry information to be printed on the various outputs such as invoices, order confirmations and so on. You first create and maintain the text module using transaction code SO10 and then assign the textmodules to their respective positions in the sales organization customization screen Here text module Z_ADRS_SENDER stores the sales organization address, Z_ADRS_HEADER store the logo, Z_ADRS_FOOTER stores the footer lines and Z _ADRS_SIGNATURE stores the electronic signature for sales organization 9090. Always create your own text modules with a prefix Y or Z. This way your text modules will not be overwritten by SAP when you apply some software patches or perform a release upgrade on your SAP system.

REFSORG SALESDOC TYPE

This field sets up a reference between two sales organizations that share a common sales document type assignment. If you created your sales organization by copying f rom an existing sales organization, this field will automatically get populated with the source sales organization number from which you copied. Refer “Sales Document Type per Sales Area” “Sales,” for more details on how to use this field.

Cust. Inter-co. Bill.

Here you enter the intercompany customer number for your sales organization. We will discuss intercompany billing process and customization , “Billing.”

Sales Org. Calendar

Here you enter the factory calendar for your sales organization. A factory calendar in SAP SD defines the working and nonworking days for your plant /factory /country setup and controls the shipping and billing activities. We’ll discuss the customization of the factory calendar in the “Setting Up a Factory Calendar” .

Rebate Proc. Active

Activating a rebate at the sales organization level is one of the prerequisites for rebate processing in SAP. Select this checkbox when you want to activate rebate processing for your sales organization. We’ll discuss rebate processing “Billing”Once you are done entering the values you want for your sales organization, click the check mark button. This check mark button acts like the Enter key on your keyboard. Once clicked, SAP will automatically open the address data screen for you to maintain the address details for your sales organization. Enter the address data, and save your entry by clicking the Save button .Congratulations! You have successfully defined your first sales organization.

Address maintenance screen for a sales organization

Address maintenance screen for a sales organization

Defining a Sales Organization Using the Copy Method

In the previous section, we showed how to define a sales organization by using the Define Sales Organization option on the Choose Activity screen . In this section, we will cover the Copy, Delete, Check Sales Organization option to set up the sales organization. Remember that with this copy option, not just the address data but also the assignments that exist for the source sales organization are copied over to the target sales organization. This includes a distribution channel assignment to a sales organization, a division assignment to a sales organization, plants to sales organizations, and even sales document types to the sales organization. In other words, this copy option copies over the entire sales organization structure from the source sales organization to the target sales organization. Once you have defined the sales organization using this option, you will need to select the first option on the Choose Activity screen—Define Sales Organization—to make changes to the address and other details for your sales organization definition. You can also use the Copy, Delete, Check Sales Organization option to delete or check an existing sales organization structure.

Let’s use this method to create our second sales organization, Galaxy Musical Instruments Mexico (9091). Follow the same steps as you did before to reach the screen shown earlier Then choose the Copy, Delete, Check Sales Organization option. You should see a screen like the.

Organizational Object Sales Organization, initial screen

Organizational Object Sales Organization, initial screen

The screen is blank, but there are a few buttons on the menu bar. Click the Copy button in the menu bar. You will now see a dialog box prompting you to provide the source and destination values for the sales organization. Enter the values and click the tick button on the dialog box to perform the copy. Now, click the back arrow buttonon the screen to go back to the Choose Activity screen.

Now select the activity Define Sales Organization, which will open the screen shown earlier Double-click the entry for sales organization 9091 to reach the Change Sales Organization screen (similar to what shown earlier,and make required changes to the fields, including Name, Description, Currency,Address Data,and so on. Voilá , you have successfully created your second sales organization.

Organizational Object Sales Organization, copy options

Organizational Object Sales Organization, copy options
Assigning a Sales Organization to a Company Code

Once a sales organization has been defined, the next step in its setup is to assign the sales organization to a company code. the customization screen for assigning a sales organization to a company code. To reach this screen, you can use transaction code OVX3N or follow the menu path IMGEnterprise StructureAssignmentsSales And Distribution Assign Sales Organization To Company Code. While posting the billing transaction into accounting, the SAP ERP system uses this assignment to determine the company code to which the accounting posting for sales needs to be booked.

Assignment Sales Organization – Company Code screen, default assignment

Assignment Sales Organization – Company Code screen, default assignment

notice that sales organization 9090 is not assigned to a company code, whereas 9091 is already assigned to company code 1000 by default. The reason for that is simple. We copied 9091 from 1000 using the Copy, Delete,Check Sales Organizat ion option, whereas 9090 was created manually using the Define Sales Organization option. During the copy from 1000 to 9091, the system not only copied the address data but also applied all the assignments that were true for 1000 to 9091, thus bringing in the company code 1000 assignment to sales organization 9091.the Galaxy assignments, after we maintained the company code assignment for sales organization 9090 and corrected the company code assignment for sales organization 9091.

Assignment Sales Organization – Company Code screen, final assignment

Assignment Sales Organization – Company Code screen, final assignment

Case Study—Galax YMusical InstrumentsConfiguration analysis: Sales OrganizatiOn

The sales operations for Galaxy Musical Instruments span the United States. The corporation also has a subsidiary in Mexico with its own sales entity to handle sales operationsin Mexico. The U.S. and Mexicansales entities have different company codes.Galaxy decided to use numeric codes to represent the sales organizations and created two sales organizations: 9090 for Galaxy Musical Instruments USA and 9091 for Galaxy Musical Instruments Mexico. Each of these sales organizations is assigned to its respective USA (9090) or Mexican (9091) company code.


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