SAP SD : How to Create / Define Division in SAP ?

Define the divisions in SAP SD

In this tutorial , we will learn how to define the divisions in your company. You use divisions to group together materials, products, or services. The system uses the division to determine the sales areas and business areas to which a material, product, or service is assigned.In Sales and Distribution (SD), the division is an organizational entity responsible for selling particular products or for the profit made on them.

Recommendation

You should define divisions for products only after consulting your Sales and Distribution department.

The division is one of the organizational units in Sales & Distribution and is also required for business area account assignment for logistics transactions in Financial Accounting. The business area for the material is determined via the plant and the division defined in the material master record.

In order to adapt the functional scope of a division to the organization in your company, you should process the following check list:

·         Allocate a division to one or more sales organizations.

·         Allocate a division to one or more distribution channels.

·         Allocate a business area to a division from a plant. This way, business area account assignment can be carried out for transactions in Materials Management. As of Release 3.0, the business area is determined in Materials Management from the division and the valuation area.

·         A material is always assigned to one division only. You specify the division on the first sales & distribution screen in the material master record.

·         You can define your own master data within a division for customers as well as your own conditions and pricing.

·         You can also create shared customer master data and conditions, which apply to several divisions, using a common division.

·         You can define sales offices for a division.

·         You can define for each sales document type that all items of a sales document must belong to the same division.

·         The items of a delivery or a billing document can belong to different divisions.

·         The division is used as a selection criterion for lists of sales documents and the work list for deliveries.

·         You can determine the printer destination for messages differently for every division on the basis of the sales documents.

STEP 1: to Create the Division either use T code OVXB  or We have Following TWO paths to Define Divisions

PATH 1

1. IMG activity path :IMG >ENTERPRISE STRUCTURE=>DEFINATION=> LOGISTICS – GENERAL  => Define, Copy, delete, check division

2. Click on execute button to Define, Copy, delete, check division  (Following type Window will open), Click on “Define Copy” button to create the Division

PATH 2

•  IMG activity path :IMG > LOGISTICS – GENERAL  => MATERIAL MASTER  => SETTINGS FOR KEY FIELDS=> Define Divisions
• Click on execute button to Define Divisions 

Transaction Code : VOXB

STEP 2:  Following type Window will open, Click on “New Entries” button to create the new Division

STEP 3:  Following type Window will Open

 STEP 4:  Update the Following Details

·         Division : Give the 2 digit alphanumeric code

·         Name. : Give appropriate Division name Description

STEP 5:   Click on Save Button to store Configured data

SAP Recommendation

•   Please use the division "01" as a "general division" if you do not differentiate between divisions in your company.
•  If you enter the value 01 as a parameter in the user master record, the user does not need to make further specifications.
•  Define the master data for a representative division if you do not need to dinstinguish customer master data and pricing elements by division. You can then use this data in several divisions.

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