Division in Material Master

[Former Member]

Dear Gururs,

Can any one explain me the difference between the Division which you defined in the Sales Area and the usage of Division in Material Master. Kindly throw some light on this.

Regds

Jeevagan

[Former Member]

hi,

division is sales organisation specific.

division in sales area - states that the customer belongs to this division

division in MMR - its not mandatory field to enter the data but its optional - here also it states that the material belongs to this division

hope this clears your issue

balajia

[Former Member]

Dear All,

Thanks for quick response. But my question is Does the Division in Sales Area and MMR can be different. If so why ?. Also i am not clear with the Division in Sales Area (Sales Orgn + Distribution Channel + Division ) and MMR.

Regds

Jeeva

[sridhar_v]

Hi,

First of all what is Division.

As the name specify, it can be specific to sales organisation or product group in simple terms. For statistical purpose or for the clear demarkatiion of products and there sales areas division is word we use.

For example:

Take one electrical company which manufactures T.V and Telephones. In such scenario how should we know which product is selling more. Is the demand for T.V gone up or for the Telephone.

What is the total sales coming from T.V and what is the total sales for the Telephone in some perticular year, and as a whole what is the sales of whole company can be calculated. Not only that depending upon the situation we also can increase or decrease the marketing spending, production etc... which is completely from the view of business scenario.

Now Division in Sales Area is the combination of "Sales Organisation + Distribution channel + Divison."

Here the division is the same which we have defined in enterprise structure for the statistical purpose and clear demarkation of products. When the products are divided into two divisions, most of the time the customer could vary, or may remain same. There fore we also maintain Common distribution channel and common divisions.

So without geting confused just think division is for the statistics purpose only.

You can also refer

http://help.sap.com/saphelp_47x200/helpdata/en/dd/56359caea111d199b60000e8a5bd28/frameset.htm

Saplinx

[Former Member]

Let me try to put in my thought on this.

Division that you see in SAP is actually the material division. When you create materials, it can belong to one division of your company. Say for example if you take Uniliver, there are may divisions there. Say they have food and beverages, they have health products, they have products for women, they have product for babies. Now, these are broad classifications. Now, if you have material tea (like Bruckbond), it can fall in food and beverages division.

Use of division. It can help you in creating different pricing, it can help you in reporting and analysis. Also, it can help you in customizing some of the operations within SAP.

Then, why does sales area have division in it. The reason I think is simple. Division in sales area can give you flexibility. In the above example, we know that there are a lot of divisions. But, you want to have one common division to sell all your products to customers. Then you can have only one division as common division and use rest of the divisions to price and item or do an analysis.

Now suppose you are an organization which supplies materials to military and also to commercial market. Then, you want to restrict all the customers from the commercial market to buy materials which are in military division. Then, you can create two seperate sales areas and work around it. (Even distribution channels can be used in this case thought). In my experience these are the things that I have seen and also, what I understand is division of material is for pricing and subsequent report basis.

If you want to break down the sales based on the division, (for each sales org and distribution chn) then, you should have the division in the sales orders. If divisions should come in sales orders, then, it should be there in the sales area.

Hope this helps...

Regards,

Mukund S

[Former Member]

Hi,

For Sales area, there might customers only for Retail or wholesale.

and within the material master, the material can be retail or wholesale item.

conditions will differ based on division selection.

Thanks,

Srini.