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What is the relationship between sales organizations and company codes?

Answer Posted / Abhishek Kumar Goutam

Sales Organizations (TVKO) and Company Codes are closely related in SAP SD. Each sales organization is assigned to one or multiple company codes, and each company code can have multiple sales organizations. The assignment determines which company-specific data (like taxes, payment terms, etc.) will be used for the sales transactions of that particular sales organization.

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