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Define Sales Organization

Sales Organization is the highest organizational level in sales and distribution. The purpose of the sales organization is to serve as a top level unit for defining your company specific sales and distribution structure. You can assign distribution channels and sales divisions to it, and link sales offices and sales groups (employees) to the sales organization by creating a sales area. Distribution channels, sales divisions, sales offices and groups are all lower level organizational units in SD. Every sales organization can have specific pricing conditions assigned to it. Sales organization can be assigned to only one company code, and to any number of plants within this company code. It is a part of the sales area which is defined by several organizational unit combinations (including sales organization, distribution channel and division).


In this video we have covered this customizing step which allows you to create a new sales organization or change/delete the existing one. Before performing this step, it’s typical that you already have defined your company structure for sales and distribution in blueprint and need to create it in SAP. This is practically the first step in SAP SD module customizing as all the other organizational units depend on having a sales organization above in the hierarchy.

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