Organizational Units and Basic Structures in SAP Sales and Distribution

Basic Structure in SAP Sales and Distribution Depending on their size, modern companies consist of different production sites, sales offices, sales organizations, etc. This organizational structure is also considered in the SD module. 

Client (client)

A client is the highest hierarchical level in an SAP ERP system with its own master and transaction data as well as Customizing settings. If you want to log in to a SAP ERP system as a user, then the client must be specified. Most database tables in an SAP system are client-specific. However, there are also several cross-client tables with settings that are valid for all clients of an SAP ERP system. 

Company Code (Company Code)

Conceptually, a company code does not belong directly to the SD module but is assigned to the Finance module (FI). The company code is the smallest unit in an organization for which a separate accounting department exists – eg a legally independent company within the organization. Within the scope of this bookkeeping, a separate annual financial statement with balance sheet and profit and loss account can be created for the company code.

Credit Control Area

Through the credit control area, as the name suggests, loans are controlled. In the context of SD, above all credit limits are meant for the buyers (debtors), which can be determined individually for each customer. In the SD area, the table is for credit control areas


A work is a concept from the logistics module and represents a permanent establishment or branch within a company code. In a plant, the service is created by processing or producing materials. For the SD module, above all, the delivery plant is relevant, from where the goods or services are provided for a specific customer. The delivery to the customer takes place in the context of a distribution chain (= combination of sales organization and distribution channel).

Sales Organization

A sales organization represents a structure of a company from a sales perspective. For example, each sales organization maintains its own master data and its own pricing takes place. In many cases, a sales organization also serves to split a market according to geographic criteria.

Distribution channel

A distribution channel is a sales channel through which a company sells its products and services. This can eg direct sales, online distribution, mail order, wholesale etc. Products and services are typically distributed through multiple channels (eg offline and online). SAP also takes this requirement into account.

Division (division)

A division is also a concept from the logistics module and aggregates a certain range of sold services and products in the field of sales and distribution. In the material master record, therefore, every material is also clearly assigned to a division. 

Sales area and Sales Group

The sales area is a clear combination of sales organization, distribution channel and division. The following figure shows an example organization for sales areas in a company. A sales group serves for the further organization of sales offices according to organizational aspects. 

Exemplary SD Organization Structure

 Instead of directly filling the SAP tables, one uses the corresponding transactions provided by SAP instead. The corresponding transactions can be found using the transaction SPRO(SAP Project Reference Object) – for example, for the maintenance of sales organizations (Sales Organization).

About SAP

SAP provides a system ERP package for comprehensive management of core business. In order to make efficient use of corporate management resources and improve management relationships, it provides software packages for comprehensive management of core business rather than departments. SAP, along with Microsoft and Oracle, is one of the top companies in the world. The market share in world is also high, and the needs of SAP consultants continue to be high.

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