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Former Member

Reference Division

Hello Friends,

1. In the course materials, common master data for Division, the diagram shows Customer master data and condition master data both shown at Sales org + Division level, without showing the Distribution channel.

Why is the distribution channel not shown?

Likewise, for common master for Distribution channel the diagram does not show the division level.

2. Can i confirm that Material master data we can specify a reference (common) Distribution channel but not a reference division.



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2 Answers

  • Best Answer
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    Former Member
    Feb 20, 2011 at 05:23 AM

    Division in SAP is at the material level. Division in sales area is included for greater flexibility. Common division is used as one division which will represent all the material divisions the your company has. The common division helps you in

    a. Maintaining the master data like customer master only once and you need not extend it to all the sales areas that get created only because of change in division.

    b. Maintaining the pricing data becomes easy

    c. As you are not overloading the system, it is not bulky.

    So, you assign one division to all the available divisions. The reason for only representing sales org and division in the table is that you are first saying that these divisions belong to this sales organization. By this way you are establishing a link between sales organization and division.

    Similarly you assing a reference distribution channel to a distirbution channel. Here also you are establishing a link b/w the Sales org and the distribution channel. Hence, you have only sales org and dbr chn.

    Basically you will not reference a common distribution channel in the material. However, it depends on the business scenario. So, it becomes the implementors decision to do so after having a discussion with business. Usually materials are extended to each of the sales org and distribution channel combination.

    Common divisions are not assigned to materails. These divisions in the material will help mainly in reporting and pricing for any business.

    Hope this helps...


    Mukund S

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  • Feb 21, 2011 at 04:24 AM


    Common Distribution Channel and Common Divison are maintained so that if any master data like customer or material maintained with respect to one distribution channel can be used in other DCh. It prevents the multiplication of master records.

    Eg: A customer is created for say sales area 1000/20/00 then the same customer can be used in sales area 1000/30/00 if we maintain 20 as common distribution channel. Hence no need for extending the customers...the same for materials also.

    Divisions have two main applications: They are organizational units for Sales and Distribution, and they are necessary for business area account assignment for logistics transactions in Financial Accounting. Divisions can be used to describe specific product groups and can form the basis for sales statistics,

    Letu2019s say you have a product range that is not different for the four different distribution channels you have (the channels could be telesales, retail, industry, and wholesale.) Neither is there a difference in the customersu2019 details when they purchase through one or the other. Thus, you will not want to create a multiple of four views of customer master and material master records. Merely create the customer master records and material master records in one of the distribution channels, such as retail. Then assign the other distribution channels you created in the organizational structure setup to this one

    A few imp. T Codes :--

    OVXA - Assign division to sales organization

    OVXG - Set up sales area

    OVXM - Assign sales office to sales area

    e.g Sales Organization -> Distriubtion Channel -> Division

    VOR2 - Define Common Divisions

    OVAN - Combine divisions allows you to share sales document type data between different divisions. You define the sales document types in a central division and then use it as a reference division.

    For e.g.

    Sales Organization Division Reference division

    ALL 01 01

    ALL 02 01

    ALL 03 01


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