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 Sales Organizations



sales organization is an organizational unit within Logistics. The basic sales and distribution structure is defined using sales organizations.


The sales organization represents the selling unit in the legal sense. It is responsible for example for product liability and other rights of recourse; customer deliveries; business partner contacts; and direct mailing campaigns. It also helps you to offset business operations internally.

Different components use the sales organization object:

  • G/L accounting (for account determination)
  • Controlling (where the sales organization is used as a characteristic in profitability and market segment analysis)
  • Quality management in shipping.

Each sales organization is assigned to exactly one company code to which sales must be posted.

You can structure a sales organization into several distribution chains. This determines the channel through which the sales organization can distribute materials and services. You can assign several divisions to a sales organization. The sales organization is then responsible for distributing materials or services for that division.

Each sales area determines the distribution channel through which the products of a division are sold. Each distribution channel can be used by several plants, which in turn can be assigned to several different company codes. If a sales organization and a plant are assigned to different company codes, the system carries out an internal billing between the two company codes for each business transaction entry.

You can define your own master data within a sales organization. Each sales organization has its own customer and materials master data, its own conditions and its own pricing policy.

Since a sales organization cannot share master data with other sales organizations, you must create master data separately for each sales organization. However, you can create data for one distribution channel or division and then use it in others.

If there is one sales organization for the company code

The sales organization represents the company code Sales areas defined in the R/3 System are used to refine the structure of the external organization

Each sales area consists of the following R/3 organizational units (in any combination):

  • Sales Organizations
  • Division
  • Distribution channel

If there is more than one sales organization for the company code

Possible reasons for having more than one sales organization for each company code:


Different legal responsibilities, for example product liability


Unusual stipulations (for example legal), which make it necessary to distribute different product lines separately – for example, products for medicine and veterinary medicine


The desire to separate completely the sales activities of different enterprise areas
  • Separate distribution responsibilities, each with their own Marketing and Pricing policy – for example, one for the domestic market and one for export
  • Overlapping customer and product master records or the desire to maintain customer and product master data in a specific, unusual way


Overlapping responsibilities for order entry, or for sales and distribution processing (sales authorizations)

If you set up several sales organizations for each company code, you must ensure that the system distinguishes between the different sales organizations when it deals with certain data, for example:


Customizing settings


Master Data


Transaction data.

You do not need to set up several sales organizations for the following:


Different conditions


Fulfilling reporting requirements

You can often use other groupings in such cases, for example, product hierarchy, customer group, distribution channel, division


For more information, see:

Sales Organizations: Integration (Organizations)