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Cross Division & Business Area Determination

This document contains an example which covers enterprise structure design problem like a creation of duplicate custumer / material master data.

Sap provide general division , it is helpful for this problem also you can separate your revenue with business area…

I hope that this example describes all of them..

Design :

1- We have a company named IDES AG -1000

2- We have 3 plant , O100-O101-O102 names Meat Process Plnt – Egg Plnt – Egg Tray  Plnt

3-We have 2 sales org , K001-K002 names Domestic-Overseas

4-We have 2 distribution channel O1-O2 names Wholesale-Retail

5-We have 4 division 00-O1-O2-O3 names General Division , Meat , Egg , Egg Tray

6-We have 3 business area O100-O101-O102 names Meat – Egg – Packaging

*** CUSTOMER MASTER : We can create custumers  sales org. K001 or K002 , dist chan. O1 or O2 and division 00

*** MATERIAL MASTER : We can create materials sales org K001 or K002 , dist chan. O1 or O2 and divisions will be related with them. For example : 10×2 Egg Box will be created O3 Egg Tray Division…

*** We can create sales order with general division in header level , but also we can use materials created in different divisions. Like a Meat-Egg-Packaging..

Steps :

go to tcode SPRO / Enterprise Structure / We will benefit from defines and assignments tabs


-Sales and Distribution Configuration Steps

Define Sales Org and Distribution Channel ,

**Definitions/Sales and Distribution/Define, copy, delete, check sales organization


** Definitions/Sales and Distribution/Define,copy,delete,check distribution channel


**Division creation configurations …


   However , we will use 00 general division…


   ***Definition is completed. After that , we can start assignments.

   – Assignment Sales Org to Company Code ,

    ** You can assign a sales organization only one company code.


    – Assignment Distribution Channel to Sales Organization

   *** You can assign a distrubiton channel to a lot of sales organization.


     – Assignment division – sales organization

*** You can assign a division to a lot of sales organization.


— Set up Sales Area


After that , we have to manage sd with business area to seperate our revenue.

Business area account assignment steps ..


   ** Firstly , we have to define rules by sales area.

     In this example ; I prefered rule 001 (Plant/Division criteria) , you can change it for your requirements.


     Secondly ; Assign Business Area to Plant and Division .


  *** Last step is determination of General Division .

    Note : You can benefit from General Distrubiton option as same as General Division to solve duplicate creation of master datas.

     Spro / Sales and Distribution / Master Data / Define Common Divisions


** Sales Order is created with Customer (Difined -General Division) , and Materials (Defined-Different Divisions)


    *** Customer master has general division.


    ** Material master has division which is related with its production line.


*** Account assignment is managed with business area in item level.


     Thanks a lot for your patience.


     M.Ozgur Unal

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  • Hi

    This is beauty of SAP. Thank you for sharing this information. It will help those consultants who are thinking how they should configure enterprise structure for their next client. 🙂


  • Mehmet,

    When one gets an opportunity to work on (configuring, issues etc.related to) Enterprise Structure, it is a great learning!

    A consultant has to arrive at a very clear picture on the Enterprise structure of the client. This might need in-depth questioning, discussion etc. with the client (to understanding things including its business processes e.g. meat, egg business etc.)

    In you particular case, few observations, comments -

    1. Business Items, at item category level (VOV7) - When you are discussing about different divisions at header and item levels, in a sales order. Then it might be worth mentioning that the field Business items should be activated (or else the system won't allow different divisions).

    2. Business Area determination rule -

    Interestingly, each plant (in the above example) manufactures only one product.

    Thus plant and ref. division (00) is sufficient to determine the business area.

    Not needed to have plant and the division to determine the business area.

    In this case the division at header and item level, in the sales order would be 00.

    Note - Ofcourse, I don't know for what other business purpose different divisions (O1, O2, O3) are being used.

    Side comment - To freshers, I would suggest to recreate all the configuration you have done above. And think of the business (and its process) and not just focus on the configuration.

    • Hi Mr. TW

      Thanks for your valuable comments.

      I will focus on your second comment 'Not needed to have plant and the division to determine the business area.'


      M.Ozgur Unal