We often know and come across a lot of SAP specific terms but don't really understand their meaning in the functional sense. Sales area is one of those things that we just select in the pop-up while working on a SAP system and often don't really care about what it means.
Also, lets understand this by the LG example.
Modelling sales area in the SAP org model, lets say LG's different dealers are modelled as sales organisations in different parts of the country. Now each sales organisation can handle only a specific area(geography) and only a specific product line, lets say washing machines. Lets say the Mumbai-Vashi branch (Org. Unit) does the retail direct selling(distribution channel) for washing machines(division). So, then that combination becomes a sales area for LG.
Now, if a customer from Mumbai-Vashi calls in for a query and requests for a quotation for 5 washing machines, the customer sales representative must identify the customer's location, his requirement (washing machines) and his mode of purchase to assign to his transaction(quotation) a sales area.
If you still have a question, please drop a comment.
Sales Area
A sales area is a combination of (Sales Organization + Distribution Channel + Division).Sales organization
The organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions. It is also responsible for business daily operations as well as legal obligations also.Distribution Channel
A channel through which an organisation makes its products/services reach the customers. For e.g. Direct Sales, Wholesale, internet sales etc.Division
Division is a way of categorising or grouping products or services. For e.g. LG sells many products like TV, washing machine, refrigerator etc. All these can be different divisions. A product and service is assigned to just one division.Also, lets understand this by the LG example.
Modelling sales area in the SAP org model, lets say LG's different dealers are modelled as sales organisations in different parts of the country. Now each sales organisation can handle only a specific area(geography) and only a specific product line, lets say washing machines. Lets say the Mumbai-Vashi branch (Org. Unit) does the retail direct selling(distribution channel) for washing machines(division). So, then that combination becomes a sales area for LG.
Now, if a customer from Mumbai-Vashi calls in for a query and requests for a quotation for 5 washing machines, the customer sales representative must identify the customer's location, his requirement (washing machines) and his mode of purchase to assign to his transaction(quotation) a sales area.
If you still have a question, please drop a comment.
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