Sales Organization

[Former Member]

Dear All,

My client has two entirely different business, not even releated product

Due to some managment decision and they have agreed to run these businesses in one company code.

For information, they are having two plants and  client differentiate the revenues by using profit centers reports.

But they have maintained one sales organization for this and they maintained divison as their businesses( two different businesess)

Now, i feel the process is wrong and want to provide one more sales organization to have a clear picutre on reports. How to substantiate my point?

Or the process they follow is correct? Kindly guide me.... I have searched enough on internet and please dont paste SAP standard definition. what is SAP recommendation?

Can some explain with real time experience.. I really need a guidance.

I knew that this question would have asked by some one .But i searched and couldnt get any exact explaniation for this.

Kindly revert.

Regards

Fazal

[former_member187652]

Hi Fazal:

This may be an after-result suggestion, but I have been thinking the same question some years back and here is my 2cents on this.

one sales org would also mean less master data maintenance. less enterprise assignment, less confusion to the users, and less complexity when later change is needed.

the only times when I think separate sales org is necessary are:

1. two sales units have different customers and they don't share with each other. this is also recommended by SAP best practice

2. FICO decide two company coded is needed on the accounting side, there will be no doubt.

I feel your GL accounts need is more of a company code consideration other than sales org, since sales org doesn't differentiate GL accounts. It might be advisable to talk to you FICO guys.

[mahendra_jani3]

Hi Fazal,

First point, really appreciate your thought to give better reporting idea to your client.

Now, about how to convince them about your thought to add one more sales organization in Enterprise structure , we need to find out what they are right now not getting from there current enterprise structure and they will get it from your suggestion let us know your thought on that.

Also why you feel that their current design is not correct? Just asking this to get some more of your views so members can discuss on that.

Regards,

MJ.

[Former Member]

Hi MJ,

Thank you for your reply.

FYI - client has not started the processes for one business, but enterprise structure has been configured.

The suggestion must be from my side on sales org...

I have checked the standard report provided by SAP and Division is available as a selection criteria. But SAP recommends maintaining different sales organization when strategy and policies are different for each business. This is what confuses me.

They use same GL accounts for two business but they want to know the revenue for each business separately.

And why I feel the current structure is not correct. Divisions are meant to store material of same characteristics and yes both are two different materials. I beleive we store material if there is change in variant of the material not the business..

Regards

Fazal

[mahendra_jani3]

Yes Fazal,

So with this you have given almost all answers.

Based on Experience I will say, If our Pricing Policies are different as per business, Our Credit Control is different as per business, Decision makers and controlling people are different then there should be 2 different sales Organization.

Another point, If Division has been used as separate Business then, the control related to Grouping of Materials on activation of the procedure will be dependent on Sales Document Type mostly.

Example: If within a Business, client is dealing in Commodity Product and Engineering Materials and same Customer is buying the product and we need to be going ahead with 2 different Pricing procedures, we will have to create separate Sales document type which will in turn complicate the process.

Also consider , permutation combination of Sales Org + DC + Div how many will it become. While design we should not design it in a way which will make a lots of permutation combinations.

To identify revenue there are multiple options in FI so that will not become issue for reporting as per my view but control on sales Process will be less if there will be only 1 sales organization.

Regards,

MJ.

[Former Member]

Hi MJ

As per the discussion with my board, We decided to have one more sales organization and as well GL accounts. Finance department have many ways to get revenue out of sales but when it comes sales Dep I believe they have FBL3N to view the revenue based on GL. It was agreed on common terms.

As you said, permutation and combination for sales area must be taken into consideration but client have max four sales area. 

Thank you for your inputs.

Regards

Fazal