SAP – SD Enterprise structure

Sales and Distribution covers the entire order-to-cash process chain from customer inquiry and sales order to the products delivery to customer’s destination through billing and payment collection. The components of logistics execution are integrated and include picking, packaging and shipping.

Enterprise structure in SAP reflects the structure of the business in the real world. Various SAP organizational units are mapped to business structure based on the real world business requirements such as Company Code, Plants, Storage Locations, Sales Organizations, Distribution Channels, Divisions, Sales Offices, Sales Groups, Sales Persons, Shipping Points, Loading Points, …

In other words the enterprise Structure is a framework in which all business transactions can be processed.

SD Enterprise Strucutre

Company Code

… is the company which implements SAP

Sales Organization

IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check Sales organization

Sales Organization is an organizational unit responsible for sale (negotiating sales conditions) and distribution of goods and services.

A sales organization is uniquely assigned to a company code. More than one sales organization can be assigned to a company code.

In the sales statistics, the sales organization is the highest summation level.

Distribution Channel

IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check distribution channel

Distribution Channel is a channel through which goods or services reach the customer. In other words it is a means through which sales materials reach the customer. It also represents your strategies to distribute goods and / or services to your customer, for example: wholesale trade, retail trade, internet trade, …

It is used to:

  • Define responsibilities
  • Achieve flexible pricing
  • Differentiate sales statistics.


… different divisions groups range of goods or services that the company manufactures. It represents a product line, for example: motorcycles, spare parts, services

Sales Area

… is a combination of Sales Organization, Distribution Channel and Division.

Sales Line

… is a combination of Sales Organization and Distribution Channel

Sales Office

… is a geographical aspect of the organization. Sales offices are assigned to sales areas

Shipping Point

Shi[pping point Is the highest-level organizational unit of shipping that controls your shipping activities. It can be a loading ramp, a mail depot, or a rail depot.

More than one shipping point can be assigned to a plant and also several plants can be assigned to a shipping point .


… is an SAP element that reflects a physical location within the company strucutre –¬†represents the location where products are being manufactured or from which materials and services are distributed (corresponds to a distribution center)

It is mandatory to create at least one plant in order to be able to use the Sales and Distribution module.

A plant must be uniquely assigned to a company code.

The assignment between sales organizations and plants does not have to be unique.

The plant is essential for determining the shipping point.

Storage Location

…is a place where stock is kept. In SAP system Storage Location keeps the quantity and value of every material. Each material manipulation is reflected in the accounting G/L.

Storage location tells you how many units of a certain product you have and how much they are worth.


… represents physical warehouse complex (including racks, cages, boxes, … to store the goods).

Warehouse number tells you where to find a certain product (system of coordinates to pinpoint a product location)

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