In SAP, Why Do We Assign Division To Sales Organisation Not To Distribution Channel?

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In SAP, why do we assign division to Sales organisation not to distribution channel?

In SAP Business Process


Sales Area= Sales Org.+Dist.Channel+Division.
Its Triangular intraction
Sales organization
/
\
/
\
Dist.Channel<----------------->Division

Sales Org controls Distribution Channel and Division


Distribution Channel: The channel that is choosen the organization to make their product reach
the end customer. (Network)
Division: Ex: HLL--------> Detergents, Out of Home,Food Products,Health Care
Sectors/Departments
TATA Motars: Trucks/Bus,Cars,Heavy Vechiles Etc...

Please note it is not:


Sales organization
|
|
Dist.Channel
|
|
Division

Division is an Organizational Unit.


The Division in the Material Master is not an Organizational Unit that can be used to maintain
related fields. It is a field which is used to uniquely assign a material to a Division.

Customizing for Division assign to Sales Organization


Enterprise Structure -> Assignment -> Sales and Distribution
Do the following 4 entries:

Assign distribution channel to sales organization


Assign division to sales organization
Set up sales area
Assign sales organization - distribution channel - plant

A Sales Org is assigned to a company code.


A Division and Distribution Channel are then assigned to the Sales Org (note: these can be
dow assigned to as many sales orgs as you like in as many combinations as you like).
n vote Together, the Sales Org, Division, and Distribution Channel form a Sales Area
Sales Offices are then assigned to the Sales Areas. You can assign a Sales Office to as
many Sales Areas as you like. Likewise, multiple Sales Groups can be assigned to a single
Sales Office... but also you can assign one Sales Group to multiple Sales Offices.
In summary:

1 Company Code : Many Sales Orgs


{Sales Org, Division, Dist. Ch.} -> 1 Sales Area (you can have as many sales areas as
there are permutations of the three)
Many Sales Offices : Many Sales Areas
Many Sales Groups : Many Sales Offices
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