3. 3
Unit Objective
At the end of this unit, you will be able to:
– Explain the concept of a business scenario
– List the main elements of business scenarios
– Understand the Authorizations concept
– Describe the relationship among the main elements of a business
scenario
8. 8
Organizational Structures – Business Functions 2
• An enterprise is structured in the SAP R/3 System according to business functions
that must correspond to the functionality assigned to the organizational units.
Examples:
• A Company Code is a unit included in the balance sheet of a legally-independent
enterprise. It is the central organizational element of Financial Accounting.
• The Controlling Area is the business unit where Cost Accounting is carried out.
Usually there is a 1:1 relationship between the controlling area and the company
code. For the purpose of company-wide cost accounting, one controlling area can
handle cost accounting for several company codes in one enterprise.
• In the context of Sales and Distribution, the Sales Organization is central
organizational element that controls the terms of sale to the customer. Distribution
Channel is the element that describes through what channel goods and/or services
will be distributed to the customer.
• In the context of Production Planning and Control, the Plant is the central
organizational unit. A plant is the place of production or simply a collection of several
locations of material stocks in close physical proximity.
• A Storage Location is a storage area comprising warehouses in close proximity.
Material stocks can be differentiated within one plant according to storage location
(inventory management).
23. 23
System-wide concepts: Unit Summary
You are now able to:
• Explain the concept of a business scenario
• List the main elements of business scenarios
• Describe the relationship among the main elements of a
business scenario
