Wednesday, 26 August 2015

Basis Understanding of Organization units & Functionality

Basis Understanding of Organization units & Functionality

SAP Sales and Distribution module is commonly termed as SD.
This module manages the selling, shipping and billing of products and services for an organization.
 The main areas covered by SD module are: Pre-sales activities Sales Order processing Shipping Billing Sales process in most organizations is based on the following: Every company is structured in a certain way and this structure has to be represented in SAP, this is done with the help of “Organizational Structures”.

1. Company Codes-  A legal & independent accounting Unit.                                                                                                                                                                        
All the Profit & Loss statement required by the law of Land are presented at this level.

2. Sales Organisation- Responsible for Selling & Distribution goods & services to the Customer.
Negotiating Sales Condition.                                                                                                                                                                
Product liability & right of recourse of Customer.                                                                                                                                                               

3. Distribution Channel-The means by which goods & services reach the Customers.                                                                                                                                                              
4. Division- It is the product range.                                                                                                                                                                      
5. Plant-
It is the distribution center where relevant stocks are kept.

6. Storage Location-
They are Organisational Unit uniquely assigned to the plant & referred to an area within the same plant where relevant stocks can be stored.

7. Shipping Point-
The highest Organisational Unit of Shipping Process.                                                                                                                                                                   
Each Outbound delivery can take place.