1. Setup for Sales and Distribution
Module 12
Setup for
Sales and Distribution

2. Sales Organization
A sales organization is responsible for negotiating sales conditions and distributing goods and services.
It represents the top organizational level to which you sum sales figures. There must be at least one sales organization defined
A sales organization is assigned to only one company code.
More than one sales organization can be assigned to a company code.

3. Distribution Channel
Sales
Organization
Distribution Channel
Wholesale
Retail
Direct
A Distribution Channel is the way sales materials reach the customer.
A distribution channel can be assigned (serve) to more than one sales organization.
Distribution Channels allow for different conditions such as minimum order quantities and pricing.

4. Division Divisions are used to represent product lines.
Sales
Organization
Divisions are used to represent product lines.
At least one division must be defined.
Divisions can be assigned to more than one sales organization.
Divisions restrict access to materials, so care should be exercised in defining divisions.

5. Sales Area
Division 1
Division 2
Distribution Channel 1
Distribution Channel 2
Sales Organization 1
A Sales Area is a valid combination of Sales organization, Distribution Channel and Division.
Customer Master Data and Sales Documents are linked to sales areas.
Simple organizational structures are usually preferred to complex ones.

6. Sales Office and Sales Group
A sales office is an optional organizational structure that establishes contact between the firm and the regional market. The sales office primarily provides a way to manage, report and analyze sales by region.
Sales groups can be used to further break down sales reports for a sales office by the sales group.

7. Shipping Point
A shipping point is a fixed location that carries out shipping activities. It may be a loading dock, a mail room or a shipping department.
One plant can have multiple shipping points.
A shipping point can serve multiple plants.
Lead times for determining delivery dates are associated with shipping points and routes.

8. Shipping Point and Route
Plant Shipping Point Route Customer
SP 1
SP 2
SP 3
The Route is the path that the delivery follows from the plant to the customer site.
Delivery dates are determined based on lead times associated with the shipping point (picking and packing time) and route (transportation lead times and transit times).
Transportation lead time is the time required to arrange for transportation.
Transit time is the actual shipping time.

9. Material Availability
The SD module first uses backward scheduling starting at the required delivery date to determine if the customer’s delivery requirements can be met.
If the customer’s required delivery date cannot be met, then the system uses forward scheduling to determine a feasible delivery date.

10. Stock Available: Backward Scheduling
Requested
Delivery
Date
Goods
issue date
Loading
Transportation
Planning Date
Material
Availability Date
Order Date
Transit Time
Loading Time
Pick Pack and Stage
Lead Time
The R/3 System uses the
longer of these two times in
calculating delivery scheduling.

11. Stock Unavailable: Forward Scheduling
Confirmed
Delivery
Date
Goods
issue date
Loading
Transportation
Planning Date
New Material
Availability Date
Order Date
Transit Time
Loading Time
Pick Pack and Stage
Lead Time
The confirmed delivery date
is derived by the R/3 System
using forward scheduling based
on the new material availability date