Why Do We Assign Division to Sales Organisation

In SAP, why do we assign division to Sales organisation not to distribution channel?

  In SAP Business Process 
   
  Sales Area= Sales Org.+Dist.Channel+Division.
   
  Its Triangular intraction
   
                          Sales organization
                               /                 \
                             /                     \
     Dist.Channel<----------------->Division
   
Sales Org controls Distribution Channel and Division
   
Distribution Channel: The channel that is choosen the organization to make their product reach the end customer.(Network)
   
Division: Ex: HLL-------->  Detergents, Out of Home,Food Products,Health Care Sectors/Departments 
              TATA Motars: Trucks/Bus,Cars,Heavy Vechiles Etc...
   
Please note it is not:
   
    Sales organization
            |
            |            
    Dist.Channel
            |
            |
      Division

Division is an Oragaizational Unit.
   
The Division in the Material Master is not an Organizational Unit that can be used to maintain related fields.  It is a field which is used to uniquely assign a material to a Division.

SAP SD Tips by : Ramkumar

Fast Links:
Integration between SD, MM, FI
Link Between SAP SD, MM & FI

Get help for your SAP SD problems
Do you have a SAP SD Question?

SAP SD Books
SAP Sales and Distribution, Certification, Interview Questions Reference Books

SAP Sales and Distribution Tips
SAP SD Discussion Forum and Sales/Distribution Tips

Best regards,
SAP Basis, ABAP Programming and Other IMG Stuff
http://www.sap-img.com

All the site contents are Copyright © www.sap-img.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies.  The site www.sap-img.com is in no way affiliated with SAP AG.
Every effort is made to ensure the content integrity.  Information used on this site is at your own risk.
 The content on this site may not be reproduced or redistributed without the express written permission of
www.sap-img.com or the content authors.