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Sales Organisation

Dear Friends

In SAP A Single Sales Organisation is Assigned to Single company code, and it cannot be assigned to other company codes why ?

Please Explain

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    author's profile photo Former Member
    Former Member
    Posted on Jan 29, 2008 at 04:36 PM

    The Sales and Distribution module uses some organizational units that can only represent sales and distribution processes, such as sales organization, distribution channel, division or shipping point. Other organizational units, such as company code or plant, are used in Sales and Distribution and in other modules in the R/3 System.

    Sales Organization:

    --> The sales organization is an organizational unit in Logistics which groups the enterprise according to the requirements of sales and distribution. A sales organization is responsible for distributing goods and services. Therefore, it is also liable for the sold products and responsible for the customers' rights of recourse.

    --> The sales organization is also used to take, for example, a regional, national or international subdivision of the market into account.

    --> A sales organization is uniquely assigned to a company code. More than one sales organization can be assigned to a company code. If you use the Sales and Distribution module, you need at least one sales organization.

    --> You maintain your own master data for a sales organization. In the sales statistics, the sales organization is the highest summation level. All items in a sales and distribution document, that is, all items of an order, an outbound delivery or a billing document, belong to a sales organization.

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  • Posted on Jan 29, 2008 at 05:17 PM

    Dear Hemant

    In simple terms, An organizational unit is subdividing an enterprise according to the requirements of Sales. It is responsible for selling materials and services. Hence, one sales organization cannot be assigned to two company codes.

    Thanks

    G. Lakshmipathi

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 29, 2008 at 08:34 PM

    I would like to illustrate this with an example:

    Sales Organization ABC is owned by Company Code ABC. The same Sales Organization ABC cannot be also owned by Company Code XYZ, as all transactions In Sales Organization will form a part of Company Code ABC, as all revenues, cost, etc can be booked in one company code only..

    As a rule, the assignment of Sales Organization to Company Code is Unique.

    Regards,

    Rajesh Banka

    Reward points if helpful

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 30, 2008 at 04:51 AM

    Hi Hemant,

    Let me take this example of Coke Cola to help you solve your question that you posted

    1) A company code is always mapped in SAP for reporting which means that it has to record all its transactions in the form of financial statements which are balance sheet and profit and loss statements

    2) The main headquarters for Coke is based in USA Atlanta it will have various company codes like Coke India, Coke Japan ,Coke Russia

    3) These company codes are created so that the headquaters in atlanta can come to know what profit and losses are made from the above countries thru the respective balance sheets. of thier countries...

    4) If coke India is the company code then you can have various sales organsations which are assigned to it dividing the country geographically we can have 4 sales organsations say coke (N) coke (S) coke (E) and coke (W)

    5) All transactions incurred in these 4 sales organsations will always be reported in the balance sheet of Coke India and not in Coke Japan or Coke Russia.

    6) Hence one or more sales organsations are uniquely assigned to a company code and not to other company codes..here the word a is very important...

    Hope this answers your question reward points if helpful..

    Regards

    Atul Keshav

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 30, 2008 at 05:32 AM

    Hi,

    An organizational unit subdividing an enterprise according to the requirements of Sales. It is responsible for selling materials and services.

    A sales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel.

    Several divisions can be assigned to a sales organization which is responsible for the materials or services provided.

    A sales area determines the distribution channel used by a sales organization to sell a division’s products.

    A sales organization is always assigned to one company code. The accounting data of the sales organization is entered for this company code.

    A distribution chain can act for several plants. The plants can be assigned to different company codes. If the sales organization and plant are assigned to different company codes, an internal billing document is sent between the company codes before the sales transactions are entered for accounting purposes

    Regards

    Adarsh

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 30, 2008 at 08:24 AM

    Appreciate the comments by others.

    To my knowledge - the single biggest reason for assigning Sales Organisation to ONE company code is the

    INTERGRATION BETWEEN SD & FI.

    When a Sales Transaction takes place, the cost and revenue gets posted against G/L accounts for a particular Company Code...now imagine - if your sales organisation was assigned to 2 company codes?.. the system will not be able to determine against which Co.Code to post the cost & revenue - there may be duplication, mismatch or error.

    Hope this makes things clear!

    Regards,

    Jn

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