Territory Management is a market view of the Enterprise. The trainer would already have explained in the SAP CRM Training how SAP CRM Territory Management is different from SAP CRM Organizational Management. In short, Org Structure represents the internal structure of the company and it is used for a variety of functions like sales, finance etc – However, territories are created solely for the purpose of Customer Interaction. Generally, the sales managers are in charge of territories and territories are created in a hierarchical manner. The basis for this territory creation could be geographical, Business Unit based, product line based, Account Based so on and so forth. Also having a different Territory Management structure allows the sales managers to quickly react to market changes rather than relying on the internal Org Structure which has too many variables controlling it. Ask your trainer if you have more questions on the differences between org structure and territory management.
Let’s take the example of a simple geography based Territory Management and recreate it in the system.
In order to create such a structure, you will have to first define the territory structure. Go to spro -> IMG -> CRM -> Master Data -> Territory Management
Step 1 : Start with defining the hierarchy levels in “Define Territory Hierarchy Levels”
Step 2 : Since this is an IDES system, you will have certain territories pre-defined. In a brand new system, this section will be empty and you can start creating hierarchy levels starting with level 0, 1, 2 and so on. In our example, we will have to create a hierarchy like shown below. However, please do NOT do this in the test system as it causes problems for other students. This will result in system dumps when you open [CRMM_TERRMAN].
Level 0 Country
Level 1 Region
Level 2 State
Level 3 City
A couple of steps need to be understood when creating your own territory hierarchy. Let’s first identify how these hierarchies should be labeled, their length. This is similar technically to how SAP Product Hierarch is maintained in SAP ECC.
Level Description Length Offset
Level 0 Country 2 0
Level 1 Region 2 4
Level 2 State 2 6
Level 3 City 3 9
For example, you would define a country like this.
And a fourth Level territory hierarchy ( City ) like this
This finishes up the required configuration. Now the master data has to be maintained for Territories.
Step 3 : Goto CRMM_TERRMAN and click on the new button to create new territories based on the territory hierarchy created in steps 1 and 2. Since we do not want to disturb the existing territory levels, we will see an example with the standard Territory hierarchy as it exists in an SAP IDES training system.
The IDES structure is as follows
Level Description Length Offset
0 Company 1 0
1 Business Unit 2 1
2 Region 4 3
3 Area 8 7
Lets create a new territory for a company say Intel – company ( 1 = US Sales ) , Business Unit ( 01 = Quad Core , 02 = Dual Core ) , Region ( NORW = North West, SOCAL = Southern California ) and Area ( LAMETRO1 = LA Metro , WAMETRO1 = Washington Metro). After creating the first level ( 1 = US Sales ), right click on the territory created and start creating sub-levels of territories. Automatically, the territory level will shift to the next level ( Business Unit )
Following the creation step shown above, recursively create the 4 levels and the final territory structure is shown below.
If you are in the SALESPRO role for example, you can view/create territories in Sales Operations -> Territories
Territories follow a hierarchical structure. If you look at the territory hierarchy ID for LAMETRO1 it will be represented in SAP as follows. Ask your SAP CRM Training instructor why it is displayed like this.
Assignment of Employees to Territories
Employees can be assigned to territories. Remember, the primary purpose of Territory Management is to represent the market view of the company in the system. Generally, one or more than one sales employees will be assigned to a territory to take care of Account Interaction. Assignment of employees is done right in CRMM_TERRMAN. For example, in this case I have assigned the employee George Adams ( belonging to a particular position ) to LAMETRO1 territory. So Adams will be responsible for all Account Level inquiries related to LA Metro territory. Similarly, the sales manager at the national level will be assigned to the US Sales ( 1 ) territory.
Assignment of Business Partner to Territory ( Based on BP Attributes )
It is not just necessary that territories are assigned to employees – As soon as a new account is created, based on certain parameters, the BP should be assigned to the respective employee. This would generally depend on zip codes, cities, districts etc. For example, if LA Metro has zip codes ranging from 91000 to 91999,