Division is used as "A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service." When using Division within a Product Master Record, remember "A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise." An example for division is "food" and "non-food". Consider the following Blog: What is Sales Area....
Material Group is "used to group together several materials or services with the same attributes...".
While both appear similar in definition, know that Division is part of a Sales Area with slightly elevated hierarchical consideration; and subsequent reporting is always IMPORTANT in deciding these values. Consider their current reporting, then confirm that you can attain similar through Material Group or Division.
The question to be answered next is: given the Distribution Channels, "what other delineations are made in order to have sales personnel speak effectively to the customer"? Are some sales personnel better at selling Food & Beverage, and others better at Non-food, while yet others at selling coffee equipment... this might be the 27 Departments to which you refer. If differentiated, it would seem then that these make for good Material Groups, BUT if sales personnel can sell all, then your Division might best be accomplished with a Common and singular value (e.g. 00).
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