Sales organizations are defined in SAP based on the company’s sales requirement. Sales organization controls terms of sales to the customers, negotiating sales, etc. It can be assigned to only one company code and one or more plants.

Configuration of Sales Organization in SAP SD 

  • IMG Menu Path:- SPRO –> Implementation Guide -> Enterprise Structure –> Definition –> Sales and Distribution -> Define, copy, delete, check Sales organization –> Define Sales organization
  • T Code to Define Sales Organisation:- OVX5

Steps to Create New Sales Organization in SAP

Step 1:- Enter Transaction Code SPRO in the Command field and press Enter

Define Sales Organization | Create sales Organization SAP SD

Step 2:- In the next screen, click on SAP Reference IMG

Define Sales Organization | Create sales Organization SAP SD

Step 3:- In the next screen, follow the menu path for Define sales organization

Define Sales Organization | Create sales Organization SAP SD

Step 4:- A window will pop up and Double click on Define sales Organization

Define Sales Organization | Create sales Organization SAP SD

Step 5:- In the next screen, click on New Entries

Define Sales Organization | Create sales Organization SAP SD

Step 6:- Update the sales organization key and name of the sales organization.

Define Sales Organization | Create sales Organization SAP SD

Step 7:- Press enter and click on the save icon; another window will pop up for updating the address. Update the sales organization address.

Define Sales Organization | Create sales Organization SAP SDStep 8:- After updating all the required address information, click on the save icon

Define Sales Organization | Create sales Organization SAP SD

Thus Sales Organization is successfully configured in SAP SD.