What is sales organization in SAP

Sales Organization in SAP is the highest level organizational unit in SAP SD, which is responsible for all the activities of Sales & Services that occurs in the Company.

  • It is an organizational unit where the strategic decision related to sales will be taken
  • It is responsible for sales and distribution of products, negotiates terms of sales, etc.
  • It is a physical entity, where the directors sales and Vice president sales strategy decision will be taken.
  • One company code can have a one or more sales organization, means sales organization should to be assigned to only one company code.
  • SAP SD consultants are responsible for maintaining the sales organization in SAP

Scenarios for multiple Sales Organizations

The following are the scenarios, where you can maintain one or more sales organization in SAP.

  • If client having multiple Company Codes
  • Sales Responsibilities as per regional wise
  • Domestic Sales and Export Sales

How to define sales organization in SAP

To create or define sales organization in SAP SD use transaction code (t-code) “OVX5” or navigation path Enterprise structure > Definition > Sales and Distribution > Define, copy, delete, check sales organization.

Step 1 : Enter the t-code “SPRO” from SAP easy access

SPRO

Step 2: Select SAP Reference IMG.

SAP Reference IMGStep 3: Choose “Define, copy, delete, check sales organization”.

define, copy, delete, check sales organization sapStep 4: A choose activity screen displays with the options,

  • Define sales organization
  • Copy, delete, check sales organization

Click on sales organization to create new sales organization key in SAP.

Step 5: The existing sales organizations with text displays on the screen, choose new entries button to define sales organizations as per requirements of client.

sales organization new entries in SAPStep 6: Update 4 digits alphanumeric key that defines as sales organizations and its description text. Click on address icon to update the address details of a sales organization.

Create sales organization in SAPStep 7: Update the required address details of sales organization like title, name, search terms, street address, PO box address, communication, etc.

Click on save icon or press ctrl+s and save the configured sales organization in SAP.