In sales and distribution, division is an organizational unit below distribution channel and is used to distinct between specific types of services provided. For example, you can define several product divisions like separate division for selling finished goods, trading goods, services and other materials. Every division is assigned to a material (one material has only one division assigned to it). There are also specific data which must be maintained in customer master for every division you want to be able to sell through. There can be assigned specific conditions and pricing for each division you define. A division can be assigned to several sales organizations and / or distribution channels so by that means you create sales areas which are used in sales documents to define a specific area the exact order is using, and are also used in master data definition.
This customizing step is not in sales and distribution customizing though, since the division is also used in materials management module and in logistic transactions in financial accounting. Therefore this step can be accessed through Enterprise Structure => Logistics â€“ General customizing tree but can be used both for materials management and sales and distribution processes.