In SAP Sales and Distribution (SD), the enterprise structure is crucial for mapping business processes. The Division is used to group materials or services and is a component of the sales area. The Plant is a central logistics unit from which goods are sourced and inventory is managed for sales orders. The Shipping Point is the specific location within a plant responsible for organizing and processing outbound deliveries to customers. Together, these three organizational units are fundamental for executing the entire order-to-cash process within the SD module.

A. Purchasing Organization: This is a primary organizational unit in Materials Management (MM), responsible for procurement activities, not sales.

C. Controlling Area: This is the main organizational unit in the Controlling (CO) module, used for management accounting and cost controlling purposes.

1. SAP Help Portal - S/4HANA

Organizational Structures in Sales: This official documentation outlines the core organizational units for Sales. It explicitly lists and defines the Division

Plant

and Shipping Point as essential structures.

Reference: SAP Help Portal

SAP S/4HANA

Sales -> Organizational Structures in Sales. Specifically

the sections defining "Division

" "Plant

" and "Shipping Point/Receiving Point."

2. SAP Help Portal - S/4HANA

Division: "The division is an organizational unit based on responsibility for sales or profits from saleable materials or services."

Reference: SAP Help Portal

SAP S/4HANA

Sales -> Organizational Structures in Sales -> Division.

3. SAP Help Portal - S/4HANA

Plant: "In Sales and Distribution

the plant is the location from which goods are delivered to the customer... The plant is essential for determining the shipping point."

Reference: SAP Help Portal

SAP S/4HANA

Sales -> Organizational Structures in Sales -> Plant.

4. SAP Help Portal - S/4HANA

Shipping Point: "The shipping point is the top level in the organization for shipping... A shipping point is a fixed location and is used to carry out all shipping activities."

Reference: SAP Help Portal

SAP S/4HANA

Logistics Execution (LE) -> Shipping -> The Shipping Point.