Each of the modules in SAP has its own internal organizational structure based on which transactions are processed. Normally the SAP SD Sales and Distribution modules has structure of Sales area, Sales organization, distribution channel, Sales division, Sales office etc. Similarly, the organizational structure in SAP FICO consists of client, company code, business area etc. In SAP there are linkages between SAP SD and SAP FICO.

For example, by assigning sales organization and plants, once can create a link with company codes which are in SAPFI. A plant in SAP is always linked to one company code. However the same plant can be assigned to different sales organizations. Taking the same logic, there can be different sales organizations assigned within the same company code. Transactions in SAP can also occur between various company codes. For such transactions to happen smoothly, it is important to configure linkages within SAP SD and SAP FICO. Since master data in SAP is accessed by all modules, the way the top level organizational hierarchy is structured can play a major role in ERP integration.

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