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1-Organizational Structure

The definitions of organization units is a fundamental step in any project.

Company or client: A company is an organizational unit in accounting which represents a business organization according to the requirements of commercial law in a particular country and it has one local currency in which its transaction figures are recorded. It has 3 active clients Development client Testing client Production client Company Code: Company code which is a legally independent entity is created according to tax law commercial law and other financial accounting criteria. Its is an organizational unit used in accounting Plant: The plant is an operating area or branch within a company from which the goods are delivered to the customer. It is also known as Delivering Plant from SD view point. Each plant is assigned to a unique company code. 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. Sales Organization: Its the highest level of organizational unit in SD, responsible for the sale of certain products or services. The responsibility of a sales organization may include legal liability for products and customer claims. A Sales Organization is assigned to exactly one company code. A Sales Organization is assigned to one or more Plants. Each Sales Organization has its own Master data for example its own customer and material master data as well as condition records. Distribution Channel: The Channel through which the goods reach the customers. We can use different distribution channels in S&D to provide the market with the best possible service. Distribution Channels provide a general structure for distributing goods. wholesale trade, sales to industrial customers or direct sales from a plant are typical examples of distribution channels.

Customers can be served through one or more distribution channels within a sales organization. Within a distribution channel, you can define your own master data for customers or materials as well as your own conditions and pricing. You can determine sales offices for a distribution channel. Division: A Broad range Of Products the Company is manufacturing is referred to as divisions. Material is always assigned to one division only. For each combination of sales organization and division there is a reference division for master data and sales document types. This allows the data in the reference division to be used in the original division too Sales Area: A particular combination of sales organization, distribution channel and division is known as a SALES AREA. You can assign any number of distribution channels and divisions to a sales organization Sales Office: A physical location (for example, a branch office) that has responsibility for the sale of certain products or services within a given geographical area. Sales offices are assigned to sales areas A sales office can be divided into several vendor groups. A selection field for the delivery and billing due list. Sales Group: A group of sales people who are responsible for processing sales of certain products or services. A sales group is responsible for all items in a sales document. You can assign a sales group to one or more sales offices. Storage Location: The physical location, under the plant level at which the material is stored. There may be one or more storage locations within a plant. Stocks are managed only on a quantity basis and not on a value basis at storage location level. Physical inventories are carried out at storage location level. It is possible to store material data specific to a storage location. Shipping Point: The physical location from which the items are shipped to the customer. For example a warehouse or collection of loading ramps etc. The shipping point is the top level in the organization for shipping. The shipping points in the system can be predefined, based on different combinations of : Plants, shipping conditions, loading group.

Loading point: The exact physical location where the loading of a deliver item takes place. For example, the number of a specific loading bay. A loading point is a subdivision of a shipping point. The loading point can be entered manually in the delivery header.

Assign Company code to company: One company can have many company codes but one company has to be assigned to one company. This relation is called one to many. Assign Plant to Company Code: One or more plants can be assigned to one company code. It is recommended to create a company code for each country in which a plant is situated. Assign Sales Organization to Company code: One or more sales organizations can be assigned to a company code. This establishes a link between the SD and FI systems. Assign Distribution Channel to Sales Organization: One or more distribution channels can be allocated to a sales organizations. Assign Division to Sales Organization: As many divisions as desired can be allocated to a sales organization. Any one division can belong to several sales organizations. Set up Sales Area: In this step, the sales areas are set up. A sales area can be set up for any combination of sales organization, distribution channel and divisions. Assign Sales Office to Sales Area: One or many sales offices can be assigned to the sales area. Any one sales office can belong to several sales areas at the same time. Assign Sales Group to Sales Office: As many sales groups as desired can be assigned to the sales offices. Any one sales group can belong to several sales offices. Assign Sales Area to Credit Control Area: One or more sales areas can be assigned to a credit control area. This assignment is done to activate the credit management system for a particular sales area. Assign Sales Org- Dist. Channel Plant:

One or more plants can be assigned to a combination of sales organization and distribution channel. A plant can be assigned more than once. This assignment explains the SDMM integration.

Assign Shipping Point to Plant: As many shipping points as desired can be assigned to the plants. Any one shipping point can belong to several plants. Consistency Check ( For S&D Settings): Consistency check is performed to check whether all definitions are complete after defining the organizational units and allocated them to one another. For example whether the addresses were maintained for all sales organizations. whether the allocation to a company code was made. a sales area created. To check the entire Structure go to EC02

Common Master Data

You can define that customer master records, which have been created for each sales organization for a distribution channel (or division), are also valid in other distribution channels (or divisions). This makes it easier to create and change master records. PREREQUISITES: In Customizing for Master Data (Sales and Distribution) : Define Common Distribution Channels Define Common Divisions

2-Initialization and Master Data

Master records containing all data necessary for processing business transactions are known as Master Data. Entering more master data reduces business transaction processing time, as the system proposes the relevant master data in the business transaction. Financial Accounting and Logistics use Master data.

Customer Master Data Material Master Data Customer/material Info Sales Document

Texts Conditions Control Tables

The system automatically proposes data about customers, materials, prices, texts etc. when you create a sales document. Maintaining Master Records is crucial for remained system performance.

Types of Master Data: Customer Master Data Material Master Data Customer Material Information Record Output Master Data Condition Master Data Business Partners Business Partner Types Customers: With whom the company has entered into a legal contact. (who buys from us) Vendors: Who execute a service or delivery for the company. (from whom we buy) Personnel: Employees of the company. (our employees) Four Basic Partner Functions (mandatory) SP Sold-to party (German AG) SH Ship-to party (German WE) BP Bill-to party (German RE) PY Payer (German RG) Partner Functions are assigned to Partner Type. The partner type could be a customer, contact person or a vendor. It is mandatory to maintain the following partner functions for a partner type (customer): Sold-to Party (SP) - Places the order. Ship-to Party (SH) - Receives goods or service. Bill-to Party (BP) - Receives the invoice. Payer (PY) - Responsible for Payment. Customer Master - SH Ship to Address Goods receiving hours Tax Customer Master - BP Billing Address Customer Master - PY Terms of payment Credit limit check

Customer Master - SP Pricing Incoterms Shipping conditions

Customer Account Group: OBD2(T CODE) An account group controls the number range and properties of different fields (mandatory, optional, display, etc) in the customer master

Partner determination: Define account group Define number ranges Assign account group to number ranges Partner functions i)partner determination procedure ii)partner function in procedure iii)partner determination procedure assigmnent iv)account group function assignment

Field Control through Account Group