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SAP ORGANIZATION STRUCTURE

www.SAPCustomization.Com

info@sapcustomization.com
SAP ORGANIZATION STRUCTURE
SAP Hierarchy, or Organizational Structure, is the fundamental functional
architecture within the SAP system. It must be defined in order to use the SAP.
Ø Enterprise Structure.
o Company Code.
o Sales Organization.
o Distribution Channel.
o Division.
Ø Sales Area.
Ø Sales Office
Ø Sales Group
Ø Shipping.
Ø Shipping Point .
Ø Plant

www.SAPCustomization.Com

info@sapcustomization.com
SAP ENTERPRISE STRUCTURE
There are various SAP organizational units that can be mapped to
business structure based on the real world business requirements
such as:

o
o
o
o
o

Company Code
Plant
Storage Location
Sales Organization
Distribution Channel etc.

www.SAPCustomization.Com

info@sapcustomization.com
SAP ENTERPRISE STRUCTURE

www.SAPCustomization.Com

info@sapcustomization.com
COMPANY CODE
Smallest organizational unit of external
accounting for which a complete, selfcontained set of accounts can be created.
This includes the entry of all transactions
that must be posted and the creation of all
items for legal individual financial
statements, such as the balance sheet and
the profit and loss statement.

Function of Sales Organization,
o A legal entity and independent accounting unit .
o A company code level we create:
o Balance Sheets required by law.
o Profit and Loss statement.

o Highest organization entity for SAP FI.

www.SAPCustomization.Com

info@sapcustomization.com
SALES ORGANIZATION
The sales organization represents the selling
unit in the legal sense. It is responsible for
example for product liability and other rights
of recourse; customer deliveries; business
partner contacts; and direct mailing
campaigns. It also helps us to offset business
operations internally.

Function of Sales Organization,
• Distributing goods and services.
• Negotiating sales conditions.
• Product liability and rights of recourse.

www.SAPCustomization.Com

info@sapcustomization.com
SALES 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.

Function of Distribution Channel,
•Through which materials reach the customer.
• Represents the distribution of goods and/or services to customer.
• Ex: Whole sale trade, retail trade, internet trade and so on.

www.SAPCustomization.Com

info@sapcustomization.com
SALES DIVISION
In the SAP System you can define a divisionspecific sales organization. Product groups, i.e.
divisions, can be defined for a wide-ranging
spectrum of products.

Function of Distribution Channel:
•Represents a product line, Ex: Motorcycles, Spare parts, Services and so on.

www.SAPCustomization.Com

info@sapcustomization.com
SAP SALES AREA
SD is organized according to sales
organization, distribution channel and
division. A combination of these three
organizational units forms the sales area.

Function of Sales Area:
•Combination of sales organization, distribution channel, and division.
•Defines the distribution channel, that a sales organization uses to sell
products of a certain division.

www.SAPCustomization.Com

info@sapcustomization.com
SAP SALES OFFICE
Geographical aspects of the organization in
business development and sales are defined using
the term sales office. A sales office can be
considered as a subsidiary. A sales office establishes
contact between the firm and the regional market.

Function of Sales Office:
•They can be used for reporting purposes. Sales offices are optional.

www.SAPCustomization.Com

info@sapcustomization.com
SAP GROUP
The staff of a sales office may be subdivided into
sales groups. For example, sales groups can be
defined for individual divisions.

Function of Sales Group:
•They can be used for reporting purposes.

www.SAPCustomization.Com

info@sapcustomization.com
SAP SHIPPING POINT
Shipping points, are responsible for scheduling
and processing deliveries to customers, as well
as replenishment deliveries to our own
warehouses.

Function of Shipping Point:
•Shipping is an integrated module of SD processing.
•The shipping point is the highest-level organizational unit of shipping, that
controls the shipping activities.
•Each outbound delivery is processed by exactly one shipping point.

www.SAPCustomization.Com

info@sapcustomization.com
SAP PLANT
A plant can either be a place of production or a
single storage location, or a combination of closely
situated storage locations where stock is kept.
Every plant is assigned to a company code. This
ensures that stocks and stock values can be
managed separately in each company.

www.SAPCustomization.Com

info@sapcustomization.com
SAP INTEGRATION LINKS
The plants allowed for sales are determined for
each sales organization according to the
distribution channel, so that a sales organization
can sell goods from several plants. A plant can be
assigned to different sales organizations. All of
these sales organizations can sell from that plant.
We can differentiate further between the plants
belonging to a sales organization from the sales
view using the distribution channel. For certain
plants within a sales organization, the distribution
channel "sales from plant" is allowed, but not for
others.

www.SAPCustomization.Com

info@sapcustomization.com
SAP INTEGRATION LINKS
By assigning sales organizations and
plants we create a link between
company
codes
and
sales
organizations. A plant, though always
linked to one company code, can be
assigned
to
different
sales
organizations. Within a company code
several sales organizations can be
active. Business transactions can also
be carried out between different
company codes (for example, during
inter-company sales processing).

www.SAPCustomization.Com

info@sapcustomization.com
SAP FICO CONFIGURATION AND USER
GUIDE (SAPGL)
This eBook contain best practice configuration, user
guide, questions and answers, issues and resolutions of
Financial Account and Controlling (known as FICO,
SAP GL) module of mySAP ERP.
Unique Features of this book are…
•The eBook is divided into modules and sub modules;
•All configuration are on ECC 6.0;
•Real life issues and resolutions;
•Widely asked questions and answers;
•The complete eBook provides comprehensive
questions & answers, Issues & Resolutions, Important
Transaction codes and Important Tables.
•Every configuration is validated and tested through
user guide, which is different from other books

www.SAPCustomization.Com

info@sapcustomization.com
SAP FICO CONFIGURATION AND USER
GUIDE.
This eBook contain best practice configuration, user
guide, questions and answers, issues and resolutions of
Financial Account and Controlling (known as FICO)
module of mySAP ERP.
Unique Features of this book are…
•The eBook is divided into modules and sub modules;
•All configuration are on ECC 6.0;
•More than 100 user guides with figures;
•More than 100 configuration steps with descriptions;
•The complete eBook [in printed format it is 1200
pages] provides comprehensive questions & answers,
Issues & Resolutions, Important Transaction codes and
Important Tables.
•Every configuration is validated and tested through
user guide, which is different from other books
www.SAPCustomization.Com

info@sapcustomization.com
SAP FSCM CONFIGURATION AND
USER GUIDE.
In our SAP FSCM Configuration and End User Guide, we
have covered configuration and use of SAP FSCM
components (Not All).
Unique Features of this book are…
•Configuration are covered in step by step and explained
in a very systematic manner with screen shots.
•Configuration covered are done in SAP ECC 6.0
•Concepts of SAP FSCM are covered in details.
•To validate the configuration and to see desired result,
transactions are simulated. 
•User Guide navigates
you through the available
functionalities.
•Business process chapter, enrich further your knowledge
through step by step business processes.
www.SAPCustomization.Com

info@sapcustomization.com
ONLINE TRAINING.

If you are looking for online training, mail us
info@sapcustomization.com
Benefits:
•Training by certified , real time consultant
•Free eBook subscription for 4 months
•Free SAP server access for 4 months.

www.SAPCustomization.Com

info@sapcustomization.com

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SAP Organization Structure

  • 2. SAP ORGANIZATION STRUCTURE SAP Hierarchy, or Organizational Structure, is the fundamental functional architecture within the SAP system. It must be defined in order to use the SAP. Ø Enterprise Structure. o Company Code. o Sales Organization. o Distribution Channel. o Division. Ø Sales Area. Ø Sales Office Ø Sales Group Ø Shipping. Ø Shipping Point . Ø Plant www.SAPCustomization.Com info@sapcustomization.com
  • 3. SAP ENTERPRISE STRUCTURE There are various SAP organizational units that can be mapped to business structure based on the real world business requirements such as: o o o o o Company Code Plant Storage Location Sales Organization Distribution Channel etc. www.SAPCustomization.Com info@sapcustomization.com
  • 5. COMPANY CODE Smallest organizational unit of external accounting for which a complete, selfcontained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement. Function of Sales Organization, o A legal entity and independent accounting unit . o A company code level we create: o Balance Sheets required by law. o Profit and Loss statement. o Highest organization entity for SAP FI. www.SAPCustomization.Com info@sapcustomization.com
  • 6. SALES ORGANIZATION The sales organization represents the selling unit in the legal sense. It is responsible for example for product liability and other rights of recourse; customer deliveries; business partner contacts; and direct mailing campaigns. It also helps us to offset business operations internally. Function of Sales Organization, • Distributing goods and services. • Negotiating sales conditions. • Product liability and rights of recourse. www.SAPCustomization.Com info@sapcustomization.com
  • 7. SALES 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. Function of Distribution Channel, •Through which materials reach the customer. • Represents the distribution of goods and/or services to customer. • Ex: Whole sale trade, retail trade, internet trade and so on. www.SAPCustomization.Com info@sapcustomization.com
  • 8. SALES DIVISION In the SAP System you can define a divisionspecific sales organization. Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products. Function of Distribution Channel: •Represents a product line, Ex: Motorcycles, Spare parts, Services and so on. www.SAPCustomization.Com info@sapcustomization.com
  • 9. SAP SALES AREA SD is organized according to sales organization, distribution channel and division. A combination of these three organizational units forms the sales area. Function of Sales Area: •Combination of sales organization, distribution channel, and division. •Defines the distribution channel, that a sales organization uses to sell products of a certain division. www.SAPCustomization.Com info@sapcustomization.com
  • 10. SAP SALES OFFICE Geographical aspects of the organization in business development and sales are defined using the term sales office. A sales office can be considered as a subsidiary. A sales office establishes contact between the firm and the regional market. Function of Sales Office: •They can be used for reporting purposes. Sales offices are optional. www.SAPCustomization.Com info@sapcustomization.com
  • 11. SAP GROUP The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions. Function of Sales Group: •They can be used for reporting purposes. www.SAPCustomization.Com info@sapcustomization.com
  • 12. SAP SHIPPING POINT Shipping points, are responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to our own warehouses. Function of Shipping Point: •Shipping is an integrated module of SD processing. •The shipping point is the highest-level organizational unit of shipping, that controls the shipping activities. •Each outbound delivery is processed by exactly one shipping point. www.SAPCustomization.Com info@sapcustomization.com
  • 13. SAP PLANT A plant can either be a place of production or a single storage location, or a combination of closely situated storage locations where stock is kept. Every plant is assigned to a company code. This ensures that stocks and stock values can be managed separately in each company. www.SAPCustomization.Com info@sapcustomization.com
  • 14. SAP INTEGRATION LINKS The plants allowed for sales are determined for each sales organization according to the distribution channel, so that a sales organization can sell goods from several plants. A plant can be assigned to different sales organizations. All of these sales organizations can sell from that plant. We can differentiate further between the plants belonging to a sales organization from the sales view using the distribution channel. For certain plants within a sales organization, the distribution channel "sales from plant" is allowed, but not for others. www.SAPCustomization.Com info@sapcustomization.com
  • 15. SAP INTEGRATION LINKS By assigning sales organizations and plants we create a link between company codes and sales organizations. A plant, though always linked to one company code, can be assigned to different sales organizations. Within a company code several sales organizations can be active. Business transactions can also be carried out between different company codes (for example, during inter-company sales processing). www.SAPCustomization.Com info@sapcustomization.com
  • 16. SAP FICO CONFIGURATION AND USER GUIDE (SAPGL) This eBook contain best practice configuration, user guide, questions and answers, issues and resolutions of Financial Account and Controlling (known as FICO, SAP GL) module of mySAP ERP. Unique Features of this book are… •The eBook is divided into modules and sub modules; •All configuration are on ECC 6.0; •Real life issues and resolutions; •Widely asked questions and answers; •The complete eBook provides comprehensive questions & answers, Issues & Resolutions, Important Transaction codes and Important Tables. •Every configuration is validated and tested through user guide, which is different from other books www.SAPCustomization.Com info@sapcustomization.com
  • 17. SAP FICO CONFIGURATION AND USER GUIDE. This eBook contain best practice configuration, user guide, questions and answers, issues and resolutions of Financial Account and Controlling (known as FICO) module of mySAP ERP. Unique Features of this book are… •The eBook is divided into modules and sub modules; •All configuration are on ECC 6.0; •More than 100 user guides with figures; •More than 100 configuration steps with descriptions; •The complete eBook [in printed format it is 1200 pages] provides comprehensive questions & answers, Issues & Resolutions, Important Transaction codes and Important Tables. •Every configuration is validated and tested through user guide, which is different from other books www.SAPCustomization.Com info@sapcustomization.com
  • 18. SAP FSCM CONFIGURATION AND USER GUIDE. In our SAP FSCM Configuration and End User Guide, we have covered configuration and use of SAP FSCM components (Not All). Unique Features of this book are… •Configuration are covered in step by step and explained in a very systematic manner with screen shots. •Configuration covered are done in SAP ECC 6.0 •Concepts of SAP FSCM are covered in details. •To validate the configuration and to see desired result, transactions are simulated.  •User Guide navigates you through the available functionalities. •Business process chapter, enrich further your knowledge through step by step business processes. www.SAPCustomization.Com info@sapcustomization.com
  • 19. ONLINE TRAINING. If you are looking for online training, mail us info@sapcustomization.com Benefits: •Training by certified , real time consultant •Free eBook subscription for 4 months •Free SAP server access for 4 months. www.SAPCustomization.Com info@sapcustomization.com