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Organizational Data 129

previous chapters. In this section we have included a discussion of plant and
storage locations as they relate specifi cally to fulfi llment. No additional discus-
sion of client and company code is necessary.

SALES ORGANIZATION
A company (company code) is divided into several sales organizations,
each of which is responsible for the sale and distribution of goods and ser-
vices for a particular geographical area, such as a regional or national market.
Specifi cally, a sales organization is:
• Responsible for negotiating terms and conditions of sales for that
market.
• Responsible to customers with regard to liability and rights of
recourse in cases of disputes.

• The highest level of aggregation in sales-related reporting. That
is, sales data can be summarized up to the level of the sales
organization.

A company code must have at least one sales organization, although it
can have many. The latter arrangement is appropriate if the sales processes
are substantially different in the different sales organizations, for instance, to
handle regional differences in practices and customs. In other cases a company
might use multiple sales organizations simply to make sure that the geographic
area covered remains manageable. Although a company can include multiple
sales organizations, a sales organization can belong to only one company code.
The sales organizations for GBI are depicted in Figure 5-2. As the fi gure
indicates, GBI US has two sales organizations, one each for the Eastern and
Western US. GBI Germany also has two sales organizations, one each for the
Northern and Southern territories.

Figure 5-2: GBI sales organizations

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