Day 2 — SAP SD Organizational Structure

What is Organizational Structure in SAP SD?

Organizational Structure in SAP SD defines how a company is organized in SAP for sales and distribution activities. It helps manage sales, shipping, and billing processes efficiently. Main Organizational Units: • Client • Company Code • Sales Organization • Distribution Channel • Division • Sales Area Key Takeaway: Sales Organization + Distribution Channel + Division = Sales Area. Sales Area is the foundation for processing sales transactions in SAP SD.

A company sells laptops and mobile phones across India. • Sales Organization: India Sales • Distribution Channel: Online Sales • Division: Electronics Together, they form a Sales Area used for processing customer orders.

1. What is a Sales Organization? 2. What is a Distribution Channel? 3. What is a Division? 4. What is a Sales Area? 5. Why is Organizational Structure important in SAP SD?