ORGANIZATIONAL STRUCTURE

Krishna
Feb2013
Agenda
Creating Org Structure in SAP
Master Data
Customer Master
Material Master
Vendor Master

Organizational Structure
Org Structure is generally under the
ownership of FI team.
It is recommended that as an SD consultant
you are aware of the definitions and
assignments of organizational entities.



Enterprise Structure
Enterprise structure is a representation of
legal and organizational structure of the
company.
It helps to map a companys structure into
SAP.
Organizational entities have to be defined for
all different business areas in a company.



Best practices
Enterprise structure is the foundation for the
complete implementation. Decisions taken at
the implementation level will have lifetime
repercussions.
A good design has to accommodate
companys current needs and be flexible for
future business expansions.




Client & Company Code
Client represents a group. General data and
tables that are used for all the organizational
structures are stored at this level.
Company code represents a company in
sense of accounting unit.
Company code is a independent accounting
unit that can be represented as smallest
organizational unit of external accounting.


Sales Organization
Sales organization is an org unit in Logistics that groups
the enterprise according to the requirement of sales and
distribution.
It is the highest level of organizational entity in SD.
Can be geographical, regional or other logical subdivision
of a company/market.
Legal selling unit responsible for revenue and product
liability. Has its own master data for customers, condition
records and pricing.
A Sales org can only be assigned to one company code
where as a company code can have multiple sales orgs.





Sales Organization -- 2
All the SD documents such as Sales order, delivery and
invoice are created at Sales Org level.
A sales organization can have more than one plant
assigned. .
The address maintained in sales organization is used
for document printing.
Path: IMG -> Enterprise structure Definition
Sales and Distribution.
Best Practice: Keep the number of sales organizations
to a minimum. More unnecessary organizational
entities, more pain managing the data.







Distribution Channel
DC is a means through which sales-related
materials reach the customer.
Represents characterizes the way in which
goods and services are distributed.
Several distribution channels can be assigned
to a sales organization.
Example: Wholesale,Online, Dealer, Retail






Distribution Channel 2
A Distribution channel can be used by more
than one sales organization.
Example: Apple can sell its products online,
in store or through channel partners. All
these represent different distribution
channels.
In sum, a distribution channel represents
identifiable ways to reach a customer.







Division
Division is used to group materials and services.
Several divisions can be assigned to a SO.
A division can be assigned to multiple sales
organizations.
Material is assigned to one division only.
Mainly used for reporting.
Path: IMG Enterprise Structure Definition
Logistics General.
Example: Apple has different product divisons such as
iPods, iPhones, Macs etc All these represent
different divisions.





Plant
Plant is a location where materials are stored.
It can also be a location where materials are produced.
A plant can have multiple storage locations.
A plant can be assigned to only one company code where
as a company code can have multiple plants.
In SD, plant corresponds to location from where materials
and services are delivered, i.e., a distribution center.
Implementation tip: Additional plants can be added to a
company code as necessary, however, it is difficult to
change the existing plant structure once the materials
have been added at a plant.




Shipping point
This is a key organizational entity that controls all the
shipping activities. It is a physical location (ex. A
loading ramp) from which items are shipped .
Each outbound delivery has exactly one shipping
point.
Examples: a loading ramp, rail depot.
A shipping point can be assigned to more than one
delivering plant.
During delivery processing, shipping point is the most
important criterion to select deliveries.





Sales area
Combination of Sales organization,
Distribution Channel and Division is called as
a Sales area.
All the sales documents are created for a
sales area.






Sales Office and Sales group
Sales office: It represents the sales office or
branch in a company. Different sales areas
can use one sales office.
Use of sales office is optional unlike a sales
area. For example, Apple retail group will
have a office which is represented as SO in
SAP.
Sales group: Represents a grouping of sales
persons.





Best practices
Always keep the number of organizations entities as
minimum as possible.
This reduces the amount of master data that has to be
maintained in the system and improves system
performance.
Organizational structure is the base for any SAP
implementation. Utmost care has to be taken in
defining the organizational structure. It is very difficult
(almost impossible, in some cases) to change the org
structure once the realization phase is done.




Assignment -- 1
Assignment -- 2
Assignment -- 3
Assignments 4

Assign sales organization to a company code.
Assign distribution channel to sales
organization.
Assign division to sales organization.
Set up sales area
Assign sales office to sales area
Assign sales group to sales office
Assign plant to a company code
Assign shipping point to a plant.
Create storage locations in a plant.

Master data
Important master data in SD.
Customer Master
Material Master
Vendor Master
Condition Master
Output control


Customer master data


Master data Customer master
Customer master data can be grouped into
three categories.
General Data: Valid for all the organizational
units within a client. Contains address
details, control data etc..
Company code data: Financial related
information. Key data for payment
processing in FI accounting is captured. Ex:
Terms of payment, reconciliation account.
Sales area data: It is maintained for a sales
area. It is divided into sales, shipping and
billing data.


Customer master
Customer master -- Configuration
Allows you to hide certain fields on the
end user screen or make them
required entry fields.
Define account group and assign a
number range.
Assign texts for an account group.
One time customer??
Partner functions
Different roles that a business partner can
play.
Sold to Party: Places the order.
Ship to Party: Receives goods or services.
Bill to Party: Receives invoice for goods or
services.
Payer: Responsible for paying the invoice.
Account group defines the type of the
customer.




Customer Master
Other partner functions, such as contact
person or forwarding agent are not
mandatory for sales order processing.
As the ship to can be in a different place than
sold-to, delivery address and tax information
are taken from ship-to partys master record.
As the payer is responsible for paying your
receivables, payment conditions comes from
payers master record.
Bill to party contains the address to whom
the invoice should be sent. Address could be
different from payer.

Customer master
Creating a customer
master
VD01 Create
VD02 Change
VD03 Display
XD01 FI view create
VD05 Block a cust.
VD06 Flag for
deletion
Important customer
master tables
KNA1 General data
KNVV Sales view
KNB1 Company code
data
KNVP Customer
master partner functions
KNVS Shipping data.

Business Partners
Defines all of the parties involved in a business
transaction and differentiates between their roles
customer, carrier, employees, customer contact etc.

Through customizing the system automatically
assigns partners to customer master and to all
transactions.

Business Partners Sold to & Ship to
Sold to:
Customer that orders the goods.
Can perform all the primary partner functions such
as sold-to, ship-to, payer and bill-to.
Primary type of business partner.
Cannot be linked to other sold-to partners.
Ship to:
Party that receives the goods.
Can be created as an independent partner and
linked to one or more sold-to partners.

Material master
Material master contains key data is process
materials in various business applications such as
sales, purchasing and accounting.
It contains all the information about the product or
service being sold. This information is shared across
an organization and maintained by different
departments.
Material can be restricted for a distribution channel.




Material master
Material master comprises of the following areas
Basic Data Relevant for all the areas
Sales and Distribution data Valid of SO and DC
Purchasing data Specific to plant
Accounting
Costing
Warehouse Management
MM01 Create
MM02 Change
MM03 Display



Material master
Material master comprises of the following areas
Basic Data Relevant for all the areas
Sales and Distribution data Valid of SO and DC
Purchasing data Specific to plant
Accounting
Costing
Warehouse Management
MM01 Create
MM02 Change
MM03 Display



Material master tables
MARA General material data
MARC Plant specific data
MVKE Sales relevant data.

In a organization, different types of materials are
managed such as raw materials, semi-finished goods
and finished goods. Materials with similar set of
attributes are grouped under a material type.
Examples:
FERT Finished products
HALB Semi finished products

Material master views
Basic Data: View contains data that is
common to the entire organization.
Sales org view 1
Sales org view 2
Sales General/Plant data view
Purchasing view
Material requirement planning view