SAP SD – Organisation Structure

The SAP SD organizational structure defines how sales-related data is managed across company units. It includes key elements like Sales Organization, Distribution Channel, Division, and Sales Area, which together enable efficient order processing, billing, and reporting.

Client

• Top-level entity in SAP.
• Represents the entire enterprise.

Company Code

• Legal entity for financial reporting.
• Integrated with SAP FI (Financial Accounting).

Sales Organization

• Responsible for selling products/services.
• Key unit for reporting and pricing.

Distribution Channel

• Method of product delivery (e.g., retail, wholesale, online).
• Helps differentiate pricing and customer access.

Division

• Product line or business segment (e.g., electronics, clothing).
• Used for reporting and material grouping.

Sales Area

• Combination of Sales Org + Distribution Channel + Division.
• Drives pricing, customer master data, and reporting.

Plant

• Physical location for goods (e.g., warehouse, factory).
• Integrated with MM and PP modules.

Shipping Point

• Location from which deliveries are initiated.
• Determines delivery scheduling and execution.

Storage Location

• Sub-location within a plant for inventory management.

Sales Office

• Regional office handling sales activities. 

Sales Group

• Team or individual responsible for sales within a Sales Office.