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SAP SD-Enterprise Structure
SAP SD-Enterprise Structure
We can set different data of a customer for each sales area, such as:
delivering plant, shipping conditions, and delivery priority. By doing so,
for example, we can set that if a customer orders a material or service (with
includes in a division) through a wholesale channel in a sales organization,
we deliver it with high delivery priority. But, if that customer orders the
same material or service (with includes in a division) through a retail
channel in same sales organization, we deliver it with standard delivery
priority.
Conditions (pricing) master data
A company usually sells a material or service at different price conditions
for different channel distributions. For example, it gives more discounts for
same material or service that sold through wholesale channel than through
retail channel (its because the minimal order quantity for wholesale
channel is usually much bigger than retail channel).
In SAP SD, we can set different materials or services pricing conditions that
sold to the same customer for each combination of distribution channel and
sales organization.
The rule of thumb in determining SAP enterprise structure is try to create
as simple as it can. We must have a very good reason in term of business
process to create any additional organizational units of SAP enterprise
structure.
SAP Training
SAP SD Training
SAP Access
Concepts
Every organizations Sales is structured in a certain way. This structure
needs to be represented in SAP based on pre-defined organizational
elements and combine them in a pre-defined way. This method of
representing all the different organizational elements of the company in a
structured way is called Enterprise Structure. Organizational elements or
Org Units for short are a system representation of an actual company
organizational unit. For example, an org unit in real life could be a particular
product division , or a Sales Office in Seattle, or a manufacturing plant in
Boston or a warehouse in Alabama. The following picture shows how an
enterprise structure is created in SAP.
Company
GE Medicals is the name of the company. This company has presence
across the world. And when GE Healthcare declares profits in the US, it is
not just including the US company but the entire world. In SAP parlance,
GE Medicals is a Company.
Company Code
GE Medicals in the US will be run through a legal entity. A company code is
an entity that has to report its financials to the government on a timely
basis. For example an Incorporated entity can be called a company code.
In this case, GE Medicals in the US is being called as a legal entity.
Sales Organization
Since the company has presence across the US, there will be sales
organizations across the united states responsible for selling goods. For
example, the Western division is responsible for selling goods in the
Storage Location
Each plant could be associated with multiple storage locations A place
where goods are stored before being sold. For example, the new jersey
plant could have storage locations in Edison and Iselin.
Warehouse
A warehouse is an extension of the storage location. While a storage
location represents a location where goods are stored, a warehouse goes
much further and describes how the goods are sold, the topography of the
storage, storage conditions etc. Goods can still be sold without using
Warehouse Management, but a sales cannot happen without a storage
location.
Sales Office
A combination of the sales organization, distribution channel and division is
called the sales area.
Sales Organization + Distribution Channel + Division = Sales Area
Configuration
The configuration for the enterprise structure is very simple. The Menu path
is [ SPRO -> IMG -> Enterprise Structure ]
Definition:
The first step before doing the configuration is to assess the requirement as
to how the company is organized and how best it can be represented in
SAP. Each company is run in a different way. Since SAPs enterprise
structure is rigid, you might have to try different things to fit their
organizations model into SAPs org structure. After you have fully
understood the organizational units in the company, start by defining those
in SAP. The following picture shows the path of the enterprise structure
definition in IMG. While the Company and company codes are defined by
FICO consultants, the ones highlighted in red below are absolutely
necessary for the functioning of the SAP Sales & Distribution Module.
Enter the copy button and choose the From and To sales organizations.
Enter 0001 as the source and target for example is WEST. Thats it and you
are done.
Organizational units can be defined in a similar way for the rest of them.
Assignment :
After defining the org elements, we have to assign them to each other to
make a meaningful representation of the companys organizational units.
The menu path is [ SPRO -> IMG -> Enterprise Structure -> Assignment ].
Lets set up a sales area by assigning a distribution channel and division to
the sales organization, just as an example. Select Set up Sales Area.
However, if you are trying to create a sales area with the combination of
WEST sales organization that you just created along with a distribution
channel of 01 and a division of 01, you will see an error as shown below.
The reason being that when WEST sales organization was copied with
reference to the sales organization 0001, the assignments were also
copied. This is just one of the default assignment there are many more.
So to be on the safer side, its better to copy it and delete all the necessary
assignments rather that start from scratch. Otherwise, this is how
assignments are created. Assignments can be made similarly based on our
first illustration to all other organizational units based on your requirements.
Definition
Plant
Define the plant New Jersey or Arkansas.
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Define, Copy, Delete Check Plant ]
Division
Define A division say X-Ray or CT
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Define, Copy, Delete Check Division]
Sales Organization
Define the Sales Organization East, West or South West
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition -> Sales
& Distribution -> Define, Copy, Delete,Check Sales Organization]
Distribution Channel
Define the division say Agency or Direct
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Define, Copy, Delete Check Distribution Channel]
Sales Office
Define the Sales office , say Bay Area or Los Angeles
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition -> Sales
& Distribution -> Maintain Sales Office]
Sales Group
Define the division say Field Applications or Consumables
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Maintain Sales Group]
Storage Location
Define the Storage Location say Edison or Iselin
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition >Materials Management -> Define Storage Location]
Warehouse
Define the warehouse Give it any name you like.
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics Execution-> Define, Copy, Delete Check Warehouse Number]
Shipping Point
Define the Shipping Point , say Door1 or Door 2
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics Execution -> Define, Copy, Delete Check Shipping Point]
Sales Group
Define the division say Field Applications or Consumables
Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Maintain Sales Group]
Assignment
Plant to Company Code
Assign the Plant you have created to the company code 1000.
Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment->
Logistics General -> Assign Plant to Company Code ]
Tip : When you assign the plant to company code ( Since copies were
made off of 0001 ), the system will say that the assignment has already
been made with 0001. This is because of the Copy effect.
For example, we have created a new plant for New Jersey ( NEW6 ) , but
by default it has already been assigned to 0001 company code.
Since a plant can only be assigned to 1 company code, you cannot assign
the plant to a company code of your choice. In this case, delete this
assignment and create another.
When you delete an existing assignment, you get the following error
message. You can choose YES
And then , as usual, create a new entry to assign the newly created plant to
the company code of your choice.
Sales Organization to Company Code
Assign the Sales Organization to the company code 1000
Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment-> Sales
& Distribution -> Assign Sales Organization to Company code]
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DISTRIBUTION CHANNEL = BA
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SD Configuration
Enterprise Structure:1 Edit, Copy, Delete, Check Company Code(T001)
Company is created by FI Consultant.
The company code is an organizational unit used in accounting. It is
used to structure the business organization from a financial accounting
perspective.
IMG -> Enterprise Structure -> Definition -> Financial Accounting ->
Define, copy, delete, check Company Code
2 Define Credit Control Area(T014)
Company is created by FI Consultant.
The credit control area is an organizational unit that specifies and checks a credit limit
for customers.A credit control area can include one or more company codes. It is not
possible to assign a company code to more than one control area. Within a credit
control area, the credit limits must be specified in the same currency.
IMG -> Enterprise Structure -> Definition -> Financial Accounting-> Define Credit
Control Area
3. Maintaining Sales Organization(TVKO)
Sales Organization is an organizational unit responsible for the sale of certain products
or services.
IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy,
delete, check Sales organization
4. Assigning Sales Organization to Company Code(TVKO~BUKRS)
This assignment ensures all the sales made through this Sales Organization are
accounted for in the assigned Company Code (Company Code is created by FI
Consultant).
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales
Organziation to Company Code
5. Maintaining Distribution Channel(TVTW)
Distribution Channel is the way, in which Products or Services reach Customers.
IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy,
delete, check distribution channel
6. Assigning Distribution Channel to Sales Organization(TVKOV)
This assignment ensures, a Sales Organization can supply Materials to Customers
through this Distribution Channel.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution > Assign
distribution channel to sales organization
7. Maintaining Division(TSPA)
Division is a way of grouping materials, products, or services.
IMG -> Enterprise Structure -> Definition -> Logistics General -> Define, copy, delete,
check division
8. Assigning Division to Sales Organization(TVKOS)
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign division
to sales organization
9. Setting up Sales Area(TVTA)
All the sales are made from a particular sales Area. For creating a Sales Order Sales
Area is compulsory.
IMG ->Enterprise Structure -> Assignment -> Sales and Distribution -> Set up sales
area
new condition table. Considering the requirement for new condition table, the
configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic
Function -> Pricing Control -> Condition Table (select the required fields combination,
which will store condition record).
Step 2:
Access Sequence: If existing access sequence meets the requirement, we need not
create a new access sequence. Considering the requirement for new sequence, the
configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic
Function -> Pricing Control -> Access Sequence (Access sequence is made up of
Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign
the condition table to access sequence.
Step 3:
Condition Type: If existing condition type meets the requirement, we need not create a
new condition type. Considering the requirement for new condition type, the
configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic
Function -> Pricing Control -> Condition Type. It is always recommended to copy an
existing similar condition type & make the neccessary changes. Here we assign Access
sequence to Condition type.
Step 4:
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the
neccesary changes in new pricing procedure. Pricing Procedure is a set of condition
type & arranged in the sequence in which it has to perform the calculation. Considering
the requirement for new Pricing Procedure, the configuration will be done in spro as
follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Pricing
Procedure > Maintain Pricing Procedure.
b. Pricing Procedure: After maintaining the pricing procedure the next step will be
determination of pricing procedure. Configuration for determining pricing procedure in
SPRO is as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control ->
Pricing Procedure > Determine Pricing Procedure.
5. Condition record: Condition record is a master data, which is required to be
maintained by Core team / person responsible from the client. During new
implementation, the condition records can be uploaded using tools like SCAT, LSMW,
etc.
Normal Sales Order Cycle:Step 1: Sales Document Type
IMG > Sales and Distribution > Sales > Sales Documents >
3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls
such as Sales Order to Billing, Deliver to Billing, etc.
The configuration differs from scenario to scenario & requirement of the client.
Delivery
VL02N - Change delivery document
VL04 - Delivery due list
VKM5 - List of deliveries
VL06G - List of outbound deliveries for goods issue
VL06P - List of outbound deliveries for picking
VL09 - Cancel goods issue
VT02N - Change shipment
VT70 - Output for shipments
General
VKM3, VKM4 - List of sales documents
VKM1 - List of blocked SD documents
VD52 - Material Determination
VBUP
VBAP
VBPA
VBFA
VBEP
VBBE
Item Status
Sales Document - Item Data
Partners
Document Flow
Sales Document Schedule Line
Sales Requirements: Individual Records
SD Delivery Docume
LIPS Delivery Document item data, includes referencing PO LIKP Delivery
Document Header data
Billing Document
VBRK Billing Document Header
VBRP Billing Document Item
SD Shipping Unit
VEKP Shipping Unit Item (Content)
VEPO Shipping Unit Header
This post talks about the enterprise structure in SAP SD Training for the
Jan 2011 batch. It also provides all the necessary configuration steps
required to do the configuration along with the visual representation of the
structure. For other SAP Training modules , please visit our Magna
Training home page . You would also need SAP Access to practice on
these questions. You can get SAP Access from our preferred vendor.
Questions
Write down the Organization Elements that you have created.
1. Sales Organization ( eg. if you have created WEST , list it as WEST
against the Sales Organization )
2. Distribution Channel
3. Division
4. Sales Office
5.
6.
7.
8.
9.
Sales Group
Plant
Storage Location
Warehouse
Shipping Point
Also write down the assignments that you have created
1. Plant to Company code ( eg., if you have created a Plant of ARKA , list it as
ARKA plant assigned to company code 1000 )
2. Sales Organization to company code
3. Distribution channel to Sales Organization
4. Division to Sales Organization
5. The Sales area you have set up
6. Sales Office to Sales Area
7. Sales Group to Sales Area
8. Sales Organization + Distribution Channel to Plant
9. Warehouse Number to Plant/Storage Location
10.
Shipping Point to Plant.
More quiz questions
1. Can you assign multiple company codes to a Sales Organization ? If not
why ?
2. Can you assign multiple Sales Organizations to a company code ? If yes,
give a business scenario.
3. Can you assign multiple distribution channels to a Sales Organization ? If
yes, give a business scenario which would require such an assignment.
4. Can you assign multiple divisions to a sales organization ? If yes, give a
business scenario which would require such an assignment.
5. Can you set up multiple Sales Areas using the same Sales Organization ? (
For example, can you set up 1000/01/01 and also 1000/10/01 ? )
6. Can you assign a single sales office to multiple sales areas ? If yes, why
would you want to do that ?
7. Can a sales group belong to multiple sales offices ? If yes, give a business
scenario which would require it
8. Can the same shipping point belong to multiple plants ?