enterprise structure (2).pdf

ENTERPRISE STRUCTURE
Contact globally for SAP SD training: Jaya ram Prasad
E mail: jayaramprasad26@gmail.com Mobile: +91 9866293649
RELATIONSHIPS
 Company-to-Company code: One Company can have many company codes. But one
company code has to be assigned to one company. So the relation is one to many.
 Company code to Sales Organization: One company code can have many sales
organizations. But one sales organization has to be assigned to one company code. So
the relation is one to many.
 Sales Organization to Distribution Channel: One sales organization can have many
distribution channels. One distribution channel can be assigned to many sales
organizations. So the relation is many to many.
 Sales Organization to Division: One sales organization can have many divisions. One
division can be assigned to many sales organizations. So the relation is many to many.
 Distribution Channel to Division: One distribution channel can have many divisions.
One division can be assigned to many distribution channels. So the relation is many to
many.
NOTE: Division is always sales organization specific.
 If sales wants to use a plant then plant must be assigned to sales organization.
 Sales area to Sales office: sales area can have number of sales office. So realationship
is many to many.
 Sales group to Sales office: sales office can have number of sales group. So
realtionship is many to many.

COMPANY
It is the highest level of Organizational unit, with its own data, master records and set of tables.
Examples for Client specific data:
User Master Data: Authorization and User Groups
Application data: Business transaction data and Material Master data.
From the business prospective a client forms a corporate group.
PATH

Go to New Entries: Define Company
CREDIT CONTROL AREA
Credit control area is an organizational unit that specifies and checks a credit limit for
customers.

COMPANY CODE
A Company Code represents an independent legal Accounting entity. Example: Company with a
corporate group.
Balance sheet & Profit & Loss statements required by law can be created at the company code
level. Therefore, a company code is the minimum structure necessary in R/3 FI.

CLICK ON COPY

From company code: 1000
To company code: [OURS]
Go to Company code and do the necessary changes to update.
BUSINESS AREA
A business area is an organizational unit within accounting that represents a separate area of
operations or responsibilities in a business organization.

CONTROLLING AREA
The controlling area is an organizational unit in Accounting used to subdivide the business
organization from a cost accounting standpoint.
The controlling area is embedded in the organizational structure as follows:
 A controlling area may be assigned one or more company codes.

Click on NEW ENTRIES
Maintain all the require details

PLANT
Plant is a place where goods are manufactured. The plant is an operating area or branch
within a company.
The plant is embedded in the organizational structure as follows:
 The plant is assigned to a single company code. A company code can have several
plants.
 Several storage locations in which material stocks are managed can belong to a plant.
 A single business area is assigned to a plant and to a division.
 A plant can be assigned to several combinations of sales organization and
distribution channel.
 A plant can have several shipping points. A shipping point can be assigned to several
plants.
 A plant can be defined as a maintenance planning plant.
A plant has the following attributes:
 A plant has an address.
 A plant has a language.
 A plant belongs to a country.
 A plant has its own material master data. You can maintain data at plant level for the
following views on a material master record in particular: MRP, Purchasing, Storage,
Work scheduling, Production resources/tools, Forecasting, Quality management, Sales,
Costing.

DIVISION
Group of spectrum of products is called division.
Click on Copy

SALES ORGANIZATION
 It is responsible for the sale and distribution of goods and services.
 It represents the selling unit as a legal entity. It is responsible for product guarantees
and other rights to recourse
 To define a sales organization, enter a four-character alphanumeric key and a
description. Enter an address as well.

DISTRIBUTION CHANNEL
• The distribution channel represents the channel through which salable materials
or services reach customers
• Typical distribution channels include wholesale, retail and direct sales
• A customer can be supplied through several distribution channels with in sales
organization

SALES OFFICE
• Sales Office defines Geographical aspects of the organization in business development
and sales
• It establishes contact between the firm and the regional market

SALES GROUP
• The staff of a sales office may be subdivided into sales groups.
• A sales group is responsible for all items in a sales document however items in a delivery or a billing
document can belong to different Sales groups.
STORAGE LOCATION
• Sub – division of a plant is called storage location.
• The Storage Location is an organizational unit that allows the differentiation of material
stocks within a plant

Enter Plant
Maintain all the required storage locations
PURCHASE ORGANIZATION
Purchasing organization is responsible for all purchasing activities

GOTO NEW ENTRIES AND MAINTAIN PURCHASE PRGANIZATION
SHIPPING POINT
• The shipping point is the part of the company responsible for the type of shipping, the
necessary shipping materials and the means of transport
• The shipping point is the top level in the organization for shipping.

Maintain Shipping Point
ASSIGNMENTS
In this section you create references between the organization units you have defined.
Once you have linked the organizational units, you have built the framework for processing
business transactions.

GOTO FINANCIAL ACCOUNTING

ASSIGN COMPANY CODE TO COMPANY
ASSIGN COMPANY CODE TO CREDIT CONTROL AREA

ASSIGN COMPANY CODE TO CONTROLLING AREA
SELECT DEFINED CONTROL AREA AND CLICK ON DETAILS

ASSIGN COMPANY CODE
LOGISTICS GENERAL
ASSIGN PLANT TO COMPANY CODE

ASSIGN BUSINESS AREATO PLANT/VALUATION AREA AND DIVISION

ASSIGN PLANT TO BUSINESS AREA

ASSIGN VALUATION AREA - DIVISION
SALES AND DISTRIBUTION
ASSIGN SALES ORGANIZATION TO COMPANY CODE

ASSIGN DISTRIBUTION CHANNEL TO SALES ORGANIZATION

ASSIGN DIVISION TO SALES ORGANIZATION
SALES AREA
SALES AREA IS COMBINATION OF
SALES ORGANIZATION + DISTRIBUTION CHANNEL + DIVISION

ASSIGN SALES OFFICE TO SALES AREA

ASSIGN SALES GROUP TO SALES OFFICE

ASSIGN SALES ORGANIZATION – DISTRIBUTION CHANNEL – PLANT
SALES LINE
SALES LINE is combination of
SALES ORGANIZATION + DISTRIBUTION CHANNEL + PLANT

ASSIGN SALES AREA TO CREDIT CONTROL AREA

BUSINESS AREA ACCOUNT ASSIGNMENT
DEFINE RULES BY SALES AREA
ASSIGN BUSINESS AREA TO PLANT AND DIVISION

MATERIAL AMANAGEMENT
ASSIGN PURCHASE ORGANIZATION TO COMPANY CODE
ASSIGN PURCHASE ORGANIZATION TO PLANT

LOGISTICS EXECUTION
ASSIGN SHIPPING POINT TO PLANT
SELECT YOUR PLANT AND CLICK ON ASSIGN; SELECT YOUR SHIPPING POINT

TCODE: EC01 (TO SEE ENTERPRISE STRUCTURE)

enterprise structure (2).pdf

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