Sales Organization in SAP

A sales Organization is a legal entity for selling and distributing any product and service activities.

What Is Sales Organization

1. The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements.
2. The sales Organization is responsible for the sale and distribution of goods and services.
3. It is responsible for product guarantees and other rights to recourse.
4. Negotiates terms of sales with Clients.
5. The sales organization is responsible for forming all sales policies and strategies etc.

Relationship of Sales Organization With Other Org Units in SAP

1. Relationship with Company code.
   • One Sales Organization can be assigned to only one company code. Because whatever sales revenue and expenses will be incurred these can be booked under one company code, not multiple company codes.
   • One Company Code can have multiple Sales Organizations.
2. Relationship with Distribution Channel
   • One Sales organization can have multiple distribution channels.
   • One Distribution channel can be assigned to multiple Sales organizations.
3. Relationship with Division
   • One Sales Organization can have multiple Divisions.

Define of Sales Organization in SAP SD

1. The sales organization is a higher organizational unit of Sales and distribution.
2. Defining and assigning sales organization is the responsibility of the SAP SD consultant.
3. Sales Organization used in the Sales cycle process.
4. A sales organization cannot share any master data with other sales organizations. The master data must be created separately.
5. The sales organization is used as a selection criterion for the lists of sales documents and for the delivery and billing due list.
6. Path:- IMG > Ent. Structure > Definition > Sales and Distribution > Define, Copy, Delete, Check Sales Organization > Define Sales Organization.
7. T.code:-[OVX5]
8. Length of Characters:- 4 Character Alpha-numeric Key
9. Ref. SOrg Sales DocType: If ref. Sales Organization is assigned then all the document types of ref Organization are also valid for the new Sales Organization.
10. Cust. Inter- Co. billing:- Internal Customer Number may be assigned if inter-company sales is used
11. Sales Org. Calendar:- A Calendar for Sales Organization that specifies the working days etc can be maintained.
12. Rebate Proc. Active:- Sales organization must be activated for Rebate Processing [for Rebate, Payer, and Billing Types need to be activated].
13. Address:- The address button is used to access the screen for maintaining the address of the Sales Organization. Which may be used in order confirmation print and Invoice print.
14. Sales Organization Table in SAP:- TVKO

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