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what is the use of 'division' in sales n distribution

Former Member
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hi.

what is the use of 'division' in sales n distribution. can any one explain me with examples

10 REPLIES 10

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

this will specify the location

Former Member
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Former Member
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hiii

what is division

A way of grouping materials, products and services. The system uses divisions to determine the sales areas and the business areas for a material, product and service.

use of Division

A product and service is assigned to just one division. the use of divisions lets you to organize your sales structure around groups of similar products or product lines. This allows the people in division who process orders and service customers to specialize within a manageable area of expertise.

regards

twinkal

Former Member
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Hi,

it may help u.check this link.

http://www.sapscene.com/sapscene/dassign.html

Cheers,

vasavi.v

Former Member
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Hi Jyothsna,

A sales organization may have many branches in various states and in various countries.

We call those branches as DIVISIONS in SAP.

We need to assign the divisions to the Sales Organization.

Check this link:

http://www.sap-basis-abap.com/sapsd003.htm

http://www.sap-img.com/sap-sd/why-do-we-assign-division-to-sales-organisation.htm

Regards,

Chandra Sekhar

Former Member
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Hi,

In SAP, why do we assign division to Sales organisation not to distribution channel?

In SAP Business Process

Sales Area= Sales Org.Dist.ChannelDivision.

Its Triangular intraction

Sales organization

/ \

/ \

Dist.Channel <----


> Division

Sales Org controls Distribution Channel and Division

Distribution Channel: The channel that is choosen by the organization to make their product reach the end customer.(Network)

Division: Ex: HLL----


> Detergents, Out of Home,Food Products,Health Care Sectors/Departments

TATA Motars: Trucks/Bus,Cars,Heavy Vechiles Etc...

Division is an Oragaizational Unit.

The Division in the Material Master is not an Organizational Unit that can be used to maintain related fields. It is a field which is used to uniquely assign a material to a Division.

Regards,

Mayukh

Edited by: Mayukh Dhar on Jul 30, 2008 11:08 AM

safeer_rahman2
Contributor
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Hi Jyothsna...

As you may be aware Sales Area constitute of Sales Org - Distribution Channel - Division...

With the hope that you already know what about the sales org and distribution channel... Division is nothing but the division of product manufacutred in that Company...

Say for instance, PHILIPS is a company who manufacture TVs, DVD players , Lightings (like tube light ,CFL lamps etc) etc.. Here TV could be a division , DVD could be a division , Lightings could be a division.

With divisions we can categorize the range of products.

Does that make sense...?

Thanks,

Safeer Rahman

safeer_rahman2
Contributor
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This message was moderated.

Former Member

Hi,

Division:It can be defined as a organizational entity which is responsible for handling,selling or fnegotiating a group of material in a organizational structure enviornment.

hence it is used to differentiate different product selling in a sales area.

for example,

tata motor is manufacturing indica,nano,truck,starbus etc from pune which is suppose their sales org. .now in order to differentiate the sales of these cars as stated above they have segregated different locations as division for example mumbai,singur,jamsedpur,panthnagar etc.now mumbai will be handling only indica,singur nano,jamsedpur truck etc.therefore at the end of the financial yr tata motors will get a detailed sales overview as well as projection for the yr.thats why division need to link with sales org.

i think this will make u understand.if u don't understand pls reply me.if ur understanding is complete then award me points.

thanks,

raman

Former Member
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Ís this truly ABAP related?