How to create Sales Area in R/3 System

Sales Area is nothing but the combination of sales organization, division and distribution channel.Allthe document generated in SAP R/3 like the sales documents, delivery documents are assigned to sales area. For example, billing document cannot be created  if the sales area is not provided for customer or material. Validation and restrictions can also be done with the help of Sales area. Creation of sales area allows business to structure their business operations and also help in excluding confusing combination of different organizational units.It also helps in identifying the customers indirectly . Business processes and organizational units can be streamlined as needed and thus sales area provides much help in this regards. In SAP Retail, divisions are less used, and as such sales area does not have much significance.
Each business process is unique and specified to a sales area.

For creating the sales are, one can use transaction OVXG or navigate to same using the SPRO path as below:
SAP IMG- Enterprise Structure –Assignment – Sales & Distribution – Setup sales area.

Before setting up the sales area, its important to first create the sales organization, division and distribution channel in the R/3 environment. Following the completion of same, one can proceed for creating sales area.

For creation of sales area, proceed with the following steps:

1.       Navigate to the path or use transaction OVXG to enter the below screen.

2.       Click on new entries and provide the values for sales organization, division and channel. In case, the values are not created, one would get the error as shown below.
1.       Save the entry.
2.       The configuration can be transported to other systems in landscape using the transport request.
Modification to sales area is permitted and can be done through the same transaction or SPRO path.


One can also assign sales office to sales area .This will be covered in a later article.

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