Territory Management reflects the market view of the organization.
Organizational model reflects the internal view of the organization.
Changes to the territory occurs more frequently because market requirements can change often (like new product category introduced, new area in the city, to split one territory into multiple territories or merge territories etc)
In SAP CRM, we can define levels of the Territory according to our business requirements.
Level 0 : Region/Area
Level 1 : Pin code
Level 2 : Product Category
Level 3 : Products
Following is the Basic Configuration steps of Territory Management in SAP CRM for Technical consultants to quickly set up and play.
1. Create Territory Hierarchies.
SPRO -> CRM -> Master Data -> Territory Management -> Define Territory Hierarchy levels
2. WEB UI(Sales Role) -> Sales Operations -> Territories
Define different levels as below.
3. Create a Rule
3.1 Choose Rule Set
3.2 Selecting Available conditions (in this case I am keeping it simple and choosing only Account ID)
4. Now click in “NEW”(Customer 123/198 were added).
When a ever a customer 123/198 were added in the Business Transaction (TA), Territory A2111111 should be automatically determined.
When ever a new relationships like this are created or existing rules modified, you have to run the report CRM_TERRMAN_PROC_REL in order to update the relationships and make this territory(A2111111) available in the business transaction.
(Be patient, it may not reflect immediately or determine the territory immediately when you create a sales order. After running the job, give it 2 to 3 hours and then try creating the sales order)
Rule is : Input Account ID : 123/198 then Territory (A2111111) is returned.
Release the “Rule”
5. When order 5000489 (TA) is created, Territory A2111111 is determined.