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What is Sales area, Distribution channel and division in SAP Sales and Distribution?

Answer»
  • Distribution channel tells the medium by which products and services are distributed by an organization to its end users. Division in an organizational structure represents a product or service line in a single organization.

  • A Sales area is known as entity which is required to process an order in a company. It is comprised of Sales organization, distribution channel and a division.

  • In SAP SD organizational structure, each sales organization is assigned to a company code. Distribution channel and divisions are assigned to Sales organization and all comprise to make a sales area.



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