Why Do We Assign Division to Sales Organisation

In SAP, why do we assign division to Sales organisation not to distribution channel?

In SAP Business Process

Sales Area= Sales Org.+Dist.Channel+Division.

Its Triangular intraction

Sales organization
/ \
/ \
Dist.Channel<----------------->Division

Sales Org controls Distribution Channel and Division

Distribution Channel: The channel that is choosen the organization to make their product reach the end customer.(Network)

Division: Ex: HLL--------> Detergents, Out of Home,Food Products,Health Care Sectors/Departments
TATA Motars: Trucks/Bus,Cars,Heavy Vechiles Etc...

Please note it is not:

Sales organization
|
|
Dist.Channel
|
|
Division

Division is an Oragaizational Unit.

The Division in the Material Master is not an Organizational Unit that can be used to maintain related fields. It is a field which is used to uniquely assign a material to a Division.

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