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Contents

Introduction .................................................................................................................................................. 3
Configuration ................................................................................................................................................ 3
Define Company........................................................................................................................................ 3
Define Credit Control Area........................................................................................................................ 4
Define company code ............................................................................................................................... 5
Define Controlling Area............................................................................................................................. 6
Define Operating Concern ........................................................................................................................ 7
Define Global Parameters for company codes ......................................................................................... 7
Define Valuation Level .............................................................................................................................. 8
Define Sales Organization ......................................................................................................................... 9
Define Distribution Channel.................................................................................................................... 10
Define Division ........................................................................................................................................ 11
Define Sales Office .................................................................................................................................. 12
Define Sales Group.................................................................................................................................. 13
Define Purchasing Organization.............................................................................................................. 14
Define Shipping Point.............................................................................................................................. 15
Define Loading Points ............................................................................................................................. 16
Maintain Transportation Planning Point................................................................................................. 17
Assign company code to company ......................................................................................................... 18
Assign company code to credit control area .......................................................................................... 18
Assign company code to controlling area ............................................................................................... 19
Assign controlling area to operating concern ......................................................................................... 20
Assign sales organization to a company code......................................................................................... 20
Assign distribution channels to sales organization ................................................................................. 21
Assign division to sales organization....................................................................................................... 22
Setup Sales Area...................................................................................................................................... 22
Assign Sales Office to Sales Area............................................................................................................. 23
Assign Sales Group to Sales Office .......................................................................................................... 25
Assign sales area to credit control area .................................................................................................. 25

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Assign Purchasing Organization to Company Code ................................................................................ 26
Copy G/L accounts from another company code ................................................................................... 27
Define Sites (Also known as “Plants”) ..................................................................................................... 29
Create a “Reference Site” for Distribution Center .............................................................................. 29
Create Site Profile for Distribution Center .......................................................................................... 35
Create a new Distribution Center (DC / Site) ...................................................................................... 36
Copy changes from the reference site ................................................................................................ 38
Create a new Store.............................................................................................................................. 39
Create a new reference store ............................................................................................................. 39
Create Site Profile for Stores............................................................................................................... 40
Create a new Store.............................................................................................................................. 42

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Introduction
In every SAP implementation, first activity is to understand the business requirement in detail and map
those in SAP. This time of the project is commonly known as blue print phase. During blue print phase,
one of our key activities is to identify and map their organizational chart into SAP format. This org chart is
commonly known as organization structure in SAP.
Unlike in any other SAP industry solution, IS-Retail and SAP FMS is different in terms of the plant (Site)
creation. Plant (Site) creation is known to be a configuration in all other SAP versions, where as IS-Retail
and SAP FMS having it as a master data. Today we will see how to configure a sample organization
structure in SAP FMS.

Configuration
Define Company
Company is the highest organization unit in the org structure. It denotes a business organization which
satisfy requirements of commercial laws in the country.
You can have multiple company codes setup under a given company with different operational currencies,
but all those company codes should be operational under one chart of account and fiscal year. In SAP, the
consolidation functionality works with the company level.
IMG Path:

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Define Credit Control Area
Credit control area is used to analyze customers credit status. You can assign more than one company
code to a given credit control area. But one company code cannot be assigned to multiple credit control
areas.
IMG Path:

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For more information on credit control area and credit management configuration, please click here.
If you want to learn more about “FY Variant” (Fiscal Year Variant) with regard to posting periods, please
click here.

Define company code
This is the organizational element that will be used for financial accounting.

Copy and existing company code and create your new company code.

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Define Controlling Area
Controlling area is an organizational unit in accounting that is used to handle business organizations
form the cost accounting perspective.
IMG Path:

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Define Operating Concern
Operating concerns is used to analyze the profitability of the company.
IMG Path:

Define Global Parameters for company codes
IMG Path:

This IMG node has to be maintained prior to assign your company code to a controlling area.

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Define Valuation Level
Under this IMG node, you will define how you want to valuate your products. This is a client specific setting
and therefore cannot change by company code level. You have 2 options here. They are;
1. Site level
2. Company code level
IMG Path:

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Define Sales Organization
Sales organization is a unit that represent different business units in your company. For example, you have
different brands running under same company code, you could assign each brand under a separate sales
organization. All shared customers, materials should be created under each sales organization. You can
have multiple sales organizations assigned to one company code.
IMG Path:

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Define Distribution Channel
As name clearly specifies, Distribution channel is an organizational unit that represent how you distribute
your services or products to your customers. For example, let’s say you have retail and wholesale business
in your company. In that case, you can have those two channels setup as separate distribution channels.
IMG Path:

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Define Division
Division is an organizational unit that is used for business area account assignment for logistics
transactions in Financial Accounting. All customers are created under each division and every material has
to be created one one division only.
IMG Path:

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Define Sales Office
Sales office is an optional functionality in the SAP organizational structure. This can be mainly use for
reporting or to classify your sales orders, etc.
IMG Path:

Eg: Details of the sales office as below;

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Define Sales Group
This is also another optional functionality in SAP, where you can use it to group or for reporting purpose.
IMG Path:

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Define Purchasing Organization
Purchasing organization is a business unit that is used in purchasing perspective to classify all your
purchasing activities. Every purchase order should be created under one purchasing organization and
therefore it’s important to classify how you want to define your purchasing organizations.
IMG Path:

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Define Shipping Point
Shipping point is an organizational element, that is denote the top level for shipping. You can assign one
shipping point for multiple sites as well as to multiple loading points.
IMG Path:

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Make sure you specify the address of the shipping point as well.

Define Loading Points
Loading point is lower in the hierarchy to shipping point. You can have multiple loading points assigned
to a one shipping point.
IMG Path:

When you click on the node, you will have to first specify the shipping point that you want to
create loading points for

You can define your loading points under that shipping point as below. “Responsibility” field is a
character field that you can use for reporting purpose and there is no validity against any SAP
user ID.

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Maintain Transportation Planning Point
Transportation Planning Point is responsible for planning shipments in your organization. When using SAP
shipment functionality, you will have to assign every shipment to a Transportation Planning Point.
IMG Path:

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Assign company code to company
Under this IMG node, you will assign all your company codes to the parent company that they are
belong to.
IMG Path:

Assign company code to credit control area
IMG Path:

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Assign company code to controlling area
IMG Path:

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Assign controlling area to operating concern
Under below IMG node, you need to assign your controlling area to an operating concern.
IMG Path:

Assign sales organization to a company code
Under this IMG node, you can assign your sales organizations to a given company code. Please note that
one company code can have multiple sales organizations assigned. But one sales organization cannot be
assigned to multiple company codes.
IMG Path:

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Assign distribution channels to sales organization
Under this IMG node, you need to assign you distribution channels to respective sales organizations in
your company.
IMG Path:

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Assign division to sales organization
IMG Path:

Setup Sales Area
Combination of Sales Organization – Distribution Channel – Division is known as the “Sales Area” in SAP
terminology.
IMG Path:

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Assign Sales Office to Sales Area
IMG Path:

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Assign Sales Group to Sales Office
IMG Path:

Assign sales area to credit control area
IMG Path:

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Assign Purchasing Organization to Company Code
IMG Path:

There are 2 options under here.

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Assign purchasing organization to your company code – That’s for company specific purchasing
Don’t assign purchasing organization to any company code – In that case, this purchasing
organization can be used to procure any plant, irrespective of the company code that plant is
assign in the customizing

Based on above, you will have to decide what’s suitable for your organization. Below is the scenario where
purchasing organization is assigned to a specific company code.

Copy G/L accounts from another company code
If you’re doing a testing and you want to have standard set of G/L accounts under your company code to
complete your testing, you can execute below IMG node to copy G/L accounts from a different company
code to your company code. However, it’s always advisable to ask assistance from a FI consultant.
IMG Path:

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Define Sites (Also known as “Plants”)
“Site” is commonalty known as “Plant” in the SAP terminology, except for IS-Retail and SAP FMS (Fashion
Management Solution). We are call it as a “Site” and it’s no longer done in configuration nodes (commonly
know and IMG or SPRO).
It has to be created as a master data and all assignment can be done through that master data transaction
itself.

Create a “Reference Site” for Distribution Center
Transaction: WB01
Easy Access Menu Path:

IMPORTANT:
It’s always to advisable to have a “Reference Site” (One for DC and another one for Store) and copy every
customizing change from that reference site to your site master. This copy mechanism is known as the
copy rule.
Therefore, I will first create a reference DC.

In the main screen you need to specify the Site Name (ID) and the site profile and press Enter key

IMPORTANT:
Since you’re creating a “Reference DC”, please use any standard SAP delivered “Site profile” and a
reference site for this purpose. Once you have completed your reference site, you can use that to create
your own “Site profile”.

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Under each tab, you need to specify the respective data.
Eg:
Organization / Calendar tab:
Sales Area assigned under this tab will be used for intercompany billing

Address tab:
Under this tab, you can specify the address of this site (Commonly known as Plant address)

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Valuation / Inv. Management tab:
Under this tab you can specify what sales area should be used to determine the retail price, whether
negative inventory is allowed in this Site, sales area determination for Stock Transport Orders (At issuing
site).

Listing / requirement Planning tab:
Under this tab you have specify how the listing should be behaving in this site as well as whether this site
is relevant for FMS specific functionality ARun.

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ARun is also known as “Allocation Run” in IS-AFS (Apparel and Footwear Solution) and it was a mandatory
operation in IS-AFS. However, in SAP FMS, SAP has made it as an optional functionality. You can decide
“ARun Relevancy” By site as well as by Article.

Now you have to create this site as a customer as well as a vendor. In order to do that, you need to first
click on the “Customer” button


Specify your sales area and press Enter Key. If your “Site Profile” was created with a reference
customer, then that value will automatically filled under “Reference” section
Once you have created the customer, you can create the same site a vendor as well. This is
required to support your site (DC) for STO processing

In order to do that, click on the “Vendor” button

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Once you have successfully created customer and vendor, you will see those two values appear in the top
of your site

After saving your reference DC, in order to check the customizing settings or to change those for the
reference DC, you need to use below menu path;

Under each tab you can see whether you have completed required customizing or not.

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Status of respective customizing will be displayed with the status lights.

If the status is
or
, you can directly access the respective configuration node by double clicking
that line. As I mentioned earlier, you should always change the reference site and then use the copy
functionality to copy it to your site master. Therefore, I will have to go and complete missing customizing
for my reference DC.
Once my reference DC is completed, I can create my own “Site Profile” if required.

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Create Site Profile for Distribution Center
IMG Path:

When you assign reference customer / vendor numbers to the site profile, those master data will be
automatically used for respective site master creation.

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Create a new Distribution Center (DC / Site)
Now let’s create the actual distribution center (Also known as Plant or Site)
Transaction: WB01

Specify above created site profile and reference site

In the below example, I am going to create a new DC (Warehouse) as “AW01” using my site profile
“AW01” and the “Reference DC” - AD00.

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Now you will see all required data was copied from my reference site to this new site.
When I click on the customer button, my reference DC’s customer automatically appears under
the reference section.

Same manner, when I click on the vendor button, reference DC’s vendor appears under the
reference vendor section.

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Copy changes from the reference site
In case if you need to do any changes, first you need to do it to your reference site. Once reference site
changes are completed, you can use below copy method to copy those changes from the reference site
to your site.

Go inside the site master that you need to copy reference site data to (destination)
Go to below menu path

Specify the reference site and the copy rule and press enter key. This will copy the reference site
data completely into your site.

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You can also access all related customizing nodes via below menu path:

Create a new Store
Same as above, I can create a new store using a different site profile for stores and a different reference
store. Please note that, we have different site profiles for DC’s and stores.
In order to do that, you will have to first create your reference store using a standard SAP delivered site
(Store) and a site profile for stores.

Create a new reference store
Use standard SAP delivered “site profile for stores” and “reference store” for this purpose.
Transaction: WB01

Same as above describe “reference DC” creation, create the customer and vendor data for this reference
store.

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Once above is completed, you can use that reference store to complete your own site profile for stores.

Create Site Profile for Stores
IMG Path:

Copy relevant “Site Profile for stores” and create your own “site profile for stores” with your own
reference store details.

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Please note that you need to create different site profiles for inter company and intra company stock
transports as well.
Once both “site profile for store” and “reference store” is completed, you can start creating your own
stores.

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Create a new Store
Transaction: WB01
Enter your own “Site Profile for Store” and reference site as show below and complete the data.

When you go to customer / vendor creation, you will see reference site’s customer / vendor
data get automatically copied to this store master.

As mentioned in the DC changes, if you need to do any changes to these stores, first you need to do that
to the reference store and they copy using copy functionality.

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Author: Anupa Wijesinghe
E-Mail: anupaw@gmail.com / anupaw@learnsaptips.com
Website: www.learnsaptips.com
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Disclaimer
This article is done based on my research and readings, unless otherwise stated. The views expressed are
my own and not of anyone else.
Author accepts no liability for the content of the articles in this website or for the consequences of any
actions taken on the basis of the information provided. Using this information is at the users own
discretion and responsibility.

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