In SAP, a Sales Organization in SAP SD is a crucial entity representing a company’s sales unit. It’s responsible for sales transactions, customer interactions, and managing sales conditions. Sales Organizations can be structured based on geographical areas or specific product lines, serving as the primary interface for customer relationships and enabling effective sales reporting and analysis.

Creating a Sales Organization in SAP SD

In SAP SD, Sales organization can be created using a Transaction code “OVX5” and also configured in Transaction SPRO menu path :

Access and Navigate: Log into the SAP system, and through the SAP menu, proceed to SPRO (SAP Project Reference Object). Navigate to the path: Enterprise Structure → Definition → Sales and Distribution → Define, copy, delete, check sales organization.

Creating a Sales Organization in SAP SD

  1. Define the Sales Organization: Choose ‘Define sales organization’, then ‘New entries’. Input necessary details such as a unique Sales Organization code, a descriptive name, currency, and country code.
Creating a Sales Organization in SAP SD
Creating a Sales Organization in SAP SD

It is always recommended to copy Sales organisation from Standard. Here we are copying form Standard Sale Org (1010) to ZSAH Sales Organisation.

Creating a Sales Organization in SAP SD

  • Enter Sale Organisation name and Currency.
  • Click on Ok button to add Address details to the Sales Org (ZSAH).
Creating a Sales Organization in SAP SD
Creating a Sales Organization in SAP SD

Enter all the required fields Title, Name, address details, Language details as shown and save the settings.

Creating a Sales Organization in SAP SD

Click on Save button

Creating a Sales Organization in SAP SD

Assignment of Sales Organisation to Company Code

To Assign Sales Org to a Company code in SAP ,we can use a transaction code “OVX3” and also using the SPRO navigation path:

After defining the Sales Organization, assign it to a company code by navigating to Enterprise Structure → Assignment → Sales and Distribution → Assign sales organization to company code.

Select the created Sales Organization and link it to the chosen company code.

Assignment of Sales Organisation to Company Code | saphanatutor.com

  1. Save and Further Assignments: Ensure to save the configurations to activate the Sales Organization. Further assignments to distribution channels and divisions can be made as required.

Assignment of Sales Organisation to Company Code | saphanatutor.com Assignment of Sales Organisation to Company Code | saphanatutor.com

This process establishes a Sales Organization in SAP, vital for organizing sales activities and enhancing sales process efficiency.