A Company code is a legal entity and independent accounting unit
At company code level, you create:
- Balance sheets required by law
- Profit and loss statement
Sales Organization is responsible for
- Distributing goods and services
- Negotiating sales conditions
- Product liability and rights of recourse
To use the sales and distribution functions in the system, you need at least one sales organization.
Distribution Channel is a means through which sales materials reach the customer
and it represents your strategies to distribute goods and/or services to your customers.
To use the sales and distribution functions in the system, you need at least one distribution Channel. In this way, you can, among other things:
- Define responsibilities
- Carry out flexible price structuring
- Differentiate sales statistics.
Division represents a product line and it is used to group materials and services.
To use the sales and distribution functions in the system, you need at least one division.
A sales area defines the distribution channel a sales organization uses to sell products of a certain division.
Each SD document is assigned to exactly one sales area. This assignment can't be changed.
A sales area can belong to only one company code. This relationship is created by assigning the sales organization to company code.
