Defining common divisions in SAP simplifies the management of master data across multiple divisions within a sales organization. This process enables shared master data (e.g., customer and material records) to be valid for several divisions, reducing redundancy and saving time.

Below is a detailed guide to understanding and configuring this essential feature.

What is Division?

Divisions represent product groups or lines (e.g., electronics, apparel, or furniture). Configuring common divisions reduces redundancy when multiple sales organizations sell similar products.

Examples

  1. 01: Electronics
  2. 05: Home Appliances
  3. 06: Furniture

Instead of maintaining separate master data for each division, you can define “01” (Electronics) as the common division. This ensures that the same master data is valid for “05” (Home Appliances) and “06” (Furniture).

Steps to Configure Common Divisions in SAP

  1. Go to SPRO > Sales and Distribution > Master Data > Define Common Divisions.
  2. Add new entries for divisions:
    • Division Code (e.g., 01 for Electronics, 02 for Apparel, 03 for Furniture).
    • Division Descriptions.
  3. Assign the common divisions to the appropriate sales organizations.
Defining Common Divisions in SAP SD

Common master data shared across divisions includes customer records, material records, and conditions (e.g., pricing and discounts). The configuration is valid within a single sales organization and does not affect data outside its scope.

Use Case

A company like Samsung, selling both TVs and smartphones globally, can define a common division “Electronics” for these product lines across regions.