Org structure presentation_oct_8

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© SAP America, OS.PPT - 10/13/97, Slide 1
GOAL OF ORGANIZATION STRUCTURE
WORKSHOP
 Obtain an Understanding of the Customer’s Key
Business Processes
 Define the Chico Creek Brewery’s Organization
Structure in SAP based on those Business Processes

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AGENDA
 Customer High Level Business Overview
 Business Process Review
 Financial/Asset Management
 Sales Logistics
 Procurement, Logistics Planning
 Define the Organizational Elements in SAP based
on the Chico Creek Brewery’s Business Processes
and Reporting Requirements.
 Document the Company’s SAP Organization
Structure
Definition of Organization StructureDefinition of Organization Structure

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 Company’s Mission Statement
 Markets
 Customer Base
 Products and Services
 SAP Implementation Drivers
Business OverviewBusiness Overview
Integrated Business Process ReviewIntegrated Business Process Review

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MISSION STATEMENT
 Our mission is to successfully implement SAP R/3 at
the Chico Creek Brewery in a timely, professional
manner so that our client can realize a faster and more
productive way to run their business processes.
 We intend to create a sustainable competitive
advantage for Chico Creek Brewery, as well as,
substantial profitable results through the
implementation of SAP R/3.

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Integrated Business Processes Overview
Finance / Asset ManagementFinance / Asset Management
ProcurementProcurement
Logistics PlanningLogistics Planning
Sales LogisticsSales Logistics
ProductionProduction

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Integrated Business Process Overview
Fore-
cast
Fore-
cast
Sales Oper
Planning
Sales Oper
Planning MPSMPS MRPMRP Order
Settlement
Order
Settlement
CostingCosting
InventoryInventory
Manufacturing
Execution
Manufacturing
Execution
CapacityCapacity
Financial and Managerial Reporting and AnalysisFinancial and Managerial Reporting and Analysis
ProductionProduction

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Organizational Structure Review
3000
US #1
3000
US #1
90
Pale Ale
90
Pale Ale
93
Stout
93
Stout
3000
US
3000
US
3000
US
3000
US
3000
US
3000
US
90
Pale Ale
90
Pale Ale
90
Pale Ale
93
Stout
93
Stout
03
Wholesale
93
Stout
Business
Area
Purchasing
Organization
Division/
Plant
Distribution
Channel
Division
Sales
Organization
Organizational StructureOrganizational Structure
3000
US
4000
Australia
4000
Australia
Chico Creek BreweryChico Creek Brewery

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ACCOUNTS
RECEIVABLE
ACCOUNTS
PAYABLE
ASSET
MANAGEMENT
COST CENTER
ACCOUNTING (CCA)
INTERNAL ORDER
ACCOUNTING (OPA)
PROJECT
ACCOUNTING
PRODUCT COSTING
PROFIT CENTER
ACCOUNTING (PCA)
PROFITABILITY
ANALYSIS (PA)
FINANCIAL
ACCOUNTING
(FI / AM)
FINANCIAL
REPORTING
(FI)
MANAGEMENT
REPORTING
(CO)
GENERAL
LEDGER
NATURAL
ACCOUNT
Finance Management /Accounting & Reporting
SD
MM

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Organizational Elements - FI
 Represents a legal/tax entity - Where do you
legally represent the financial events of
transacting business?
 Arms Lengths Transactions
 Level of External Reporting or Legal Sets of Books
CompanyCompany

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 Company Codes: Identify the proposed company
codes if any for customer being evaluated.
 Benefits: Identify the benefits of recommended
usage of company codes.
 Costs: Identify the costs of recommended usage
of company codes.
 Issues: Identify any open issues/questions.
Companies for Name of CustomerCompanies for Name of Customer

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Company Codes
Chico Creek Brewing
Co.
North America Australia Japan Singapore Canada

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 G/L Account Master Records Required in One or Several
Company Codes
 Postings are Made to these Accounts
 Maximum of a 10 Digit Code
 A company Must be Linked to One Operating Chart of
Accounts
 An Operating Chart of Accounts can be Linked to Many
companies
Operating Chart of AccountsOperating Chart of Accounts

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 Different from a lot of other Financial System
Applications in that the G/L account is strictly
comprised of the natural account code.
 The management reporting structures (i.e. cost centers,
divisions, regions, and job orders) is not embedded
within the chart of accounts.
 In SAP there is a relative relationship between the chart
of accounts profit and loss natural account code and the
cost centers.
Operating Chart of Accounts = General LedgerOperating Chart of Accounts = General Ledger

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Organizational Elements - CO
 An organizational unit within a corporation in which
comprehensive independent management accounting
can be performed.
 Allows you to group Company Codes from a Cost
Accounting View.
 It links the financial accounting module (FI) to the
management accounting module(CO) in SAP.
Controlling AreaControlling Area

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 The Operating Chart of Accounts Links Financial
Accounting(General Ledger) to Management Accounting in the
following way:
 A Company Code is Linked to the Operating Chart of Accounts
 The Controlling Area is Linked to the Operating Chart of Accounts
 A Company Code then can be Linked to any Controlling Area as long as they
are both Linked to the Same Operating Chart of Accounts
 Several Companies can be Linked to a Single Controlling Area
regardless of the Companies Functional Currency.
Linking of FI and COLinking of FI and CO

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 Used to Calculate the Profit of an Area of Responsibility within the
Organization (e.g. the Brewery)
 The Areas of Responsibility (Profit Centers) could be Based on
Regions, Functions, or Products (e.g. Production).
 Supports Calculating Operating Profit using the Cost of Goods Sold
P/L Format and/or the Period Accounting Method
 A Profit Center can also be Viewed as an Investment Center since it
is Possible to Transfer at Period End the Balance Sheet Positions for
Assets, WIP, AR, AP, and Inventory
Profit Center AccountingProfit Center Accounting

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 A Profit Center is not an Independent Account Assignment
Object at the Moment of Entering a Transaction in SD or MM; It
is Derived From Existing Objects and is Allocated to the Correct
Cost Object
 As a Default, Revenue and Costs for Profit Centers are Derived
as follows:
 Sales Order Line Item based on the Product being Sold
 Direct Costs Based on the Assignment of Production Orders and Direct
Costs.
 Overhead Costs Based on the Assignment of the Cost Center or other
Cost Object
Profit CenterProfit Center

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 Profit Centers: A division of the functional business areas
which CCBC is involved with (e.g. the sale of
merchandise).
 Benefits: The ability to capture costs in Profit Centers, and
perform profitability analysis on a single part of the
business.
 Issues: Identify additional Cost Centers in the
Organizational Structure, and map them to existing
processes..
Profit Centers for Chico Creek BrewingProfit Centers for Chico Creek Brewing

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 Departmental Breakdown of your Legal Entity Structure
 Lowest Level of Organization where you want to Collect and Analyze
Costs/Departmental Performance
 Departmental Budgets and Expense Analysis
 Interdepartmental Cost Allocations
 Each Cost Center is Assigned to a Profit Center, which is Assigned to a
Company Code
 Cost Centers are Structured into Organizational and/or Functional
Hierarchical Groups
Cost CentersCost Centers

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Chico Creek Brewing Company, Company Codes and Profit Centers
Controlling Area
1000
Company Code
2000
United States
Company Code
4000
Japan
Company Code
5000
Canada
Company Code
6000
Singapore (Planned)
Company Code
3000
Australia
Operating Concern
CCBC
Profit Center
1200
Porter
Profit Center
1000
Taproom (Pub)
Profit Center
1100
Merchandise
Profit Center
1400
Pale Ale
Profit Center
1500
Hefe Weisen
Profit Center
1600
Seasonal
Profit Center
1300
Stout
Controlling Area
1000

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CC 2102
Mash Turn
CC 2107
Lauter Tun
CC 2110
Wort Receiver
CC 2103
Kettle
CC 2108
Hop Strainer
CC 2111
Whirlpool
CC 2104
Heat Exchanger
CC 2109
Fermenters
CC 2112
Filters
CC 2105
Conditin. Tanks
CC 2120
Bottling
CC 2220
Legal
US
CC 2230
Purchasing
US
CC 2240
Management
US
CC 2300
US
Sales & Distrib.
CC 2200
US
Administration
CC 2100
Manufacturing
Organizational Elements - CO 10/08/98
Chico Creek Brewing Company, Cost Centers
CC 2310
Sales, US
CC3310
Sales, AU
CC4310
Sales, JP
CC 5310
Sales, CA
CC 6310
Sales, SP
CC 2140
Finished Goods
CC 2106
Malt Mill
CC 2101
Water purifier
CC6350
Distribution,SP
CC 2350
Distribution, US
CC 4350
Distribution,JP
CC 5350
Distribution, CA
CC 3350
Distribution,AU
CC 2210
Accounting
US
CC 2250
Insurance
US
CC 2260
HR
US
CC 2130
Kegging
CC 3220
Legal
AU
CC 3230
Purchasing
AU
CC 3240
Management
AU
CC 3210
Accounting
AU
CC 3250
Insurance
AU
CC 3260
HR
AU
CC 4220
Legal
JP
CC 4230
Purchasing
JP
CC 4240
Management
JP
CC 4210
Accounting
JP
CC 4250
Insurance
JP
CC 4260
HR
JP
CC 5220
Legal
CAN
CC 5230
Purchasing
CAN
CC 5240
Management
CAN
CC 5210
Accounting
CAN
CC 5250
Insurance
CAN
CC 5260
HR
CAN
CC 6220
Legal
SP
CC 6230
Purchasing
SP
CC 6240
Management
SP
CC 6210
Accounting
SP
CC 6250
Insurance
SP
CC 6260
HR
SP
CC 3200
AU
Administration
CC 4200
JP
Administration
CC 5200
CAN
Administration
CC 6200
SP
Administration
CC 6300
SP
Sales & Distrib.
CC 5300
CAN
Sales & Distrib.
CC 4300
JP
Sales & Distrib.
CC 3300
AU
Sales & Distrib.
CC 2400
Taproom (Pub)
CC 2500
Merchandise

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AM - Depreciation Areas
Depr. Areas
Pub/
Taproom Merch.
Depr.
Areas
Depr.
Areas
USA Canada Australia
Depr.
Areas
Japan
Company
Code
Canada
Company
Code
Australia
Company
Code
Japan
Chart of Depreciation Chart of Depr. Chart of Depr. Chart of Depr.
Brewery
Company Code

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AM - Asset Number Structure

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Asset Classification

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IM - Hierarchical Structure
Investment Management
Program
Orders (CO) Projects (PS)

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Chico Creek Brewing Co.Chico Creek Brewing Co.
Tap RoomTap Room
Brewing
Plant
Brewing
Plant
Tap Room
Plant
Tap Room
Plant
United States CanadaCanada
Plants
Purchasing Organizations and PlantsPurchasing Organizations and Plants
Organizational Elements - MM
SingaporeSingapore JapanJapan AustraliaAustralia
BreweryBrewery RetailRetail
Retail
Plant
Retail
Plant
Dry
Inventory
Dry
Inventory
Wet
Inventory
Wet
Inventory
Storage
Purchasing
organizations

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 Responsible for procurement for the brewing, tap room and
retail plants
 Responsible for negotiating pricing and delivery terms with
vendors for each purchasing organization
Purchasing OrganizationPurchasing Organization

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 Purchasing Organization: Each company will have its own
purchasing organization
 Benefits: A purchasing organization is assigned to a cost
center where inventory is tracked and costs are incurred
Purchasing Organization for Chico Creek Brewing Co.Purchasing Organization for Chico Creek Brewing Co.

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 It is a production facility that can have multiple locations
associated with it
 Usually a manufacturing facility, warehouse or a location that
stocks, manages and valuates inventory
 May be a physical site with multiple
manufacturing/production lines
 Can be a physical location (cost centers may or may not be
associated to a plant i.e. administrative vs. manufacturing
cost centers)
 SD availability checking is normally done at the plant level
PlantPlant

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 Links to production (PP), materials management (MM), and
sales and distribution (SD)
 A plant is assigned to a company
 Purchasing organizations are assigned to plants
Plant (Cont.)Plant (Cont.)

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 Plant: There are three plants: brewing, tap room and retail
 Benefits: Being able to keep track of the profits and costs of
each plant
Plant for Chico Creek Brewing Co.Plant for Chico Creek Brewing Co.

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 A location within a plant where inventory is stored
Storage LocationStorage Location

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 Storage Locations: Brewery and tap room will have two
separate storage locations: one for “dry” goods and one for
“wet” or cold goods.
 Benefits: Assets and incurred costs can be tracked by the
different storage locations.
Storage Locations for Chico Brewing Co.Storage Locations for Chico Brewing Co.

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Organizational Elements - SD
Sales Organization, Distribution Channel and DivisionSales Organization, Distribution Channel and Division
90
Pale Ale
90
Pale Ale
Division
3000
US
3000
US
03
Wholesale
03
Wholesale
Sales
Organization
Sales
Organization
Distribution
Channel
3000
US
Chico Creek Brewing CompanyChico Creek Brewing Company
93
Stout
93
Stout
4000
Australia
4000
Australia

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 A representation of a selling unit responsible for
product liability and other claims made by
customers
 Each business transaction is processed within a
sales organization
 Master Data Maintenance for Customers, Pricing
at Sales Organization Level
 Sales Organization Assigned to a Company Code
where Sales Revenue is Recognized (Links SD &
FI)
 Plants Assigned to a Sales Organization
Sales OrganizationSales Organization

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 Sales Organization: United States, Australia, Canada,
Japan, Singapore, Tap Room, Catering, Bakery,
Merchandise
 Benefits: To produce statistics for each of the sales
organizations.
 Costs: A manager will be required to head up each
sales organization, therefore, costs may be slightly
higher.
Sales Organization for Chico Creek Brewing CompanySales Organization for Chico Creek Brewing Company

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 Used to define how different products reach
consumers (I.e. retail, wholesale, or direct sale)
 Relevant Master Data such as price, minimum
order qty, and ship-from location may differ
between each channel
 Each Sales Order travels through one Distribution
Channel
 Distribution Channel assigned to a Sales
Organization (I.e. direct sale for Merchandise
items)
Distribution ChannelDistribution Channel

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 Distribution Channels: Wholesale, Direct Sale,
and Retail
 Benefits: We can determine the profitability of
each channel within a specified sales
organization.
 Costs: By having additional distribution channels
(wholesale, retail), we will incur transportation
costs.
Distribution Channels for Chico Creek Brewing CompanyDistribution Channels for Chico Creek Brewing Company

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 A way of Grouping Materials, Products, or
Services
 Assign each product line to a particular division
 Define customer-specific agreements for each
division, including partial deliveries, pricing, and
payment terms
DivisionDivision

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 Division: 5 types of beer, menu items, souvenirs,
and services provided by catering.
 Benefits: To keep track of how well each product
sells within a given area.
 Costs: By making the divisions equal to each type
of product and service, the divisions will become
more difficult to configure and maintain.
Division for Chico Creek Brewing CompanyDivision for Chico Creek Brewing Company

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 Sales Area is a Combination of:Sales Area is a Combination of:
 Sales OrganizationSales Organization
 Distribution ChannelDistribution Channel
 DivisionDivision
 All customer data relevant for sales is definedAll customer data relevant for sales is defined
according to the sales area (I.e. can specify foraccording to the sales area (I.e. can specify for
each customer how pricing is done in each saleseach customer how pricing is done in each sales
area)area)
 Links the Order Entry System(SD) to theLinks the Order Entry System(SD) to the
Financial/Managerial System(FI/CO)Financial/Managerial System(FI/CO)
Sales AreaSales Area

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Sales Area for Chico Creek Brewing Company
Wholesale
Direct sale
Retail
US Merchandise Tap Room
Pale Ale
Porter
Hefe Weisen
Stout
Seasonal
Pale Ale
Porter
Hefe Weisen
Stout
Seasonal
Pale Ale
Porter
Hefe Weisen
Stout
Seasonal
Hats
Tee shirt
Sweatshirts

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Sales Organization, Distribution Channel and DivisionSales Organization, Distribution Channel and Division
3000
US
3000
US
Chico Creek Brewing CompanyChico Creek Brewing Company
3000
AU
3000
AU
5000
Singapore
5000
Singapore
4000
Japan
4000
Japan
5000
Canada
5000
Canada
8000
Tap Rm.
8000
Tap Rm.
9000
Catering
9000
Catering
1000
Bakery
1000
Bakery
2000
Merchandise
2000
Merchandise
04
Direct Sale
03
Wholesale
05
Retail
92
Porter
92
Porter
93
Stout
93
Stout
94
Seasonal
94
Seasonal
91
Hefe
91
Hefe
90
Pale Ale
90
Pale Ale
04
Direct Sale
80
Hats
80
Hats
60
Shirts
60
Shirts
70
Sweatshirts
70
Sweatshirts

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Human Resource Structure
H U M A N R E S O U R C E M A N A G E M E N T D E P A R T M E N T
A N A L Y S T
C o m p e n s a t io n & B e n e f its ( H R I S )
( P a y r o ll, B e n e f it s )
P E R S O N N E L A S S I S T A N T
( G r a p h ic R e p o r t s , E v e n t s P la n n in g )
( A c t u a lly A s s is t s A ll A n a ly s t s )
A N A L Y S T
E m p lo y m e n t & R e c r u it in g
( E E O C , A A )
A N A L Y S T
D e v e lo p m e n t
( T r a in in g , O D , S a f e t y & H e a lt h )
D I R E C T O R
H u m a n R e s o u r c e M a n a g e r

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Organizational Structure Review
3000
US #1
3000
US #1
90
Pale Ale
90
Pale Ale
93
Stout
93
Stout
2000
US
2000
US
2000
US
2000
US
2000
US
2000
US
90
Pale Ale
90
Pale Ale
90
Pale Ale
93
Stout
93
Stout
03
Wholesale
93
Stout
Business
Area
Purchasing
Organization
Division/
Plant
Distribution
Channel
Division
Sales
Organization
Organizational StructureOrganizational Structure
2000
US
3000
Australia
3000
Australia
Chico Creek BreweryChico Creek Brewery

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