Identifying the Organizational Levels that Support the Lead to Cash Business Process


After completing this lesson, you will be able to:

  • Identifying the Organizational Levels that Support the Lead to Cash Business Process

Identifying the Organizational Levels That Support the Lead to Cash Business Process

Enterprise Structure in Sales and Distribution

Sales Organization

The sales organization groups the enterprise according to its sales and distribution requirements.

The sales organization considers the regional, national, or international subdivision of the market.

Each sales organization has a unique company code, but more than one sales organization can be assigned to a company code. If you use order to cash, you need at least one sales organization.

You need to maintain your own master data for a sales organization. In the sales statistics, the sales organization is the highest summation level. All items in a document created during the order-to-cash business process (all items of an order, an outbound delivery, or a billing document) belong to a sales organization.

Distribution Channel

A distribution channel performs the following tasks:

  • Defines responsibilities

  • Achieves flexible pricing

  • Differentiates sales statistics


The system uses a division to determine the sales areas assigned to a material or a service.

For example, a division can represent a product group. Therefore, you can restrict price agreements with a customer to a certain division. You can also conduct statistical analysis by division.

Sales Area

During the processing of the SD documents, the system accesses master data according to the sales area. Some examples of sales area master data information are customer master data, material master data, prices, and discounts. In addition, the system checks to make sure that certain entries are valid according to the sales area.

Assignment Delivery Plant

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Overall Assignment from Sales and Distribution

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