SIPS SAP Organization Structure - V1.5 - 31.08.2015 - With Comments - Accepted - Final

Project - PARAM
(SIPS SAP Implementation)
Phase 2 - Business Blueprint
SAP Organisation Structure

Document Control
Author IBM & SIPS Core Team

File Name SIPS SAP Organization Structure
Created 20-Aug-15
Last Edited 31-Aug-15
Number of Pages
Version Revision Date Revision Description Author Sign-off

0.1 27-Aug-15 Initial Version Raja Singh
0.2 31-Aug-15 Comments of Process Owners Raja Singh
incorporated
Target Readership
Project Team Members from SIPS and IBM
SIPS SAP Organization Page 2 of 35 Version 1.0

Structure_V1.5_31.08.2015_With
Comments_Accepted_Final.doc
Table of Contents
1. INTRODUCTION .......................................................................................................................................... 4
2. ORGANISATIONAL UNITS IN SAP ............................................................................................................ 4
3. IMPORTANT DEFINITIONS IN SAP ........................................................................................................... 6
4. KEY DRIVERS ............................................................................................................................................. 6
5. ORGANISATIONAL STRUCTURE DEFINITION FOR SIPS ....................................................................... 7
6. MODULE WISE SAP ORGANISATION STRUCTURE ............................................................................... 8
6.1 FINANCIAL MANAGEMENT & CONTROLLING ........................................................................................ 8
6.1.1 COMPANY CODE........................................................................................................................................ 8
6.1.2 CREDIT CONTROL AREA ........................................................................................................................ 10
6.1.3 CHART OF ACCOUNTS ........................................................................................................................... 10
6.1.4 OPERATING CONCERN ........................................................................................................................... 10
6.1.5 CONTROLLING AREA .............................................................................................................................. 11
6.1.6 COST CENTRES ....................................................................................................................................... 12
6.1.7 PROFIT CENTERS .................................................................................................................................... 12
6.2 MATERIAL MANAGEMENT ...................................................................................................................... 14
6.2.1 PLANT ....................................................................................................................................................... 14
6.2.2 PURCHASE ORGANIZATION .................................................................................................................. 16
6.2.3 STORAGE LOCATION .............................................................................................................................. 17
6.3 SALES AND DISTRIBUTION .................................................................................................................... 19
6.3.1 SALES ORGANISATION .......................................................................................................................... 19
6.3.2 DISTRIBUTION CHANNEL ....................................................................................................................... 20
6.3.3 DIVISION ................................................................................................................................................... 20
6.3.4 SHIPPING POINT ...................................................................................................................................... 21
6.4 PROJECT SYSTEMS ................................................................................................................................ 23
7. ANNEXURE A.1 - LIST OF PROFIT CENTERS........................................................................................ 24
7.1 LIST PROFIT CENTER – SET 1 ................................................................................................................ 24
8. ANNEXURE A.2 - LIST OF PLANTS ........................................................................................................ 27
9. ANNEXURE A.3 - LIST OF SHIPPING POINTS ..................................................................................... 29
9.1 SALES SHIPPING LOCATION ................................................................................................................. 29
9.2 SALES SHIPPING LOCATION FOR RETURNS ....................................................................................... 30
10. SIGN OFF SHEET ..................................................................................................................................... 32
10.1 FICO STRUCTURE SIGN OFF .................................................................................................................. 32
10.2 MATERIAL MANAGEMENT STRUCTURE SIGN OFF ............................................................................. 33
10.3 SALES STRUCTURE SIGN OFF .............................................................................................................. 34
10.4 PROJECT SYSTEM STRUCTURE SIGN OFF .......................................................................................... 35

1. Introduction
The SAP organisational data structures (SAP hierarchy) form the “backbone” of the SAP system
and are “linked” to every transaction and master data elements in the SAP system. The result is
that the SAP organisational data structure provides the translation of the Organization Structure,
Reporting Requirements and Process Environment of the organization where SAP is being
implemented.
SAP has flexible reporting tools and can extract data in a variety of different ways for
management reporting. The system is dependent upon the most appropriate organisation
structure being built as foundation for the support of data entry, reporting and management.
The objectives of the SAP organisation structure is to:
 Be able to organise the system to mirror the business organisation (current and future)
 To be able to report using this structure, for monitoring the effectiveness of the
organisation
 To be able to adapt to a changing business by building the most flexible structure
possible.
The Organization structure is central to the SAP software and there is no standard feature within
SAP to allow data to be changed to a new structure once it has been posted to the system.
Changes to the structure can only be achieved using conversion programs. This process is very
complex and requires a major investment in terms of time and skilled SAP technical resources.
Changes will likely result in significant modifications to documentation, user manuals, training
materials, scripts etc. Therefore it is critical to consider the future vision of the organization
before finalizing the organization structure in SAP.
2. Organisational Units in SAP

Different types of organizational units are available in the R/3 System to represent enterprise
structures in the system.
 The R/3 System (Client)
 Operating concern
 Controlling area
 Company
 Company code
 Profit Center
 Plant
When we implement the system, we must set up as many organizational units as we need. We
then map the enterprise structures to the organizational units.

Mapping the organizational units to the R/3 organizational units could look like this, for example:
Business Structure Elements R/3 organizational units
Enterprise The R/3 System
Company Operating concern
Controlling area
Company code
Business location Plant
A central R/3 System is set up for enterprise in which all the functions for Accounting and Logistics are
mapped

Reporting
Organizational unit generally structures reports and evaluations created in R/3.
When we define the organizational structure, we must bear in mind that the different
organizational units in R/3 provide very different reporting options.
Reports on these elements

Are based on:
Company codes External reporting requirements (balance sheet,

profit and loss statements) / Trial Balance
Controlling areas Cost structure of the enterprise subgroups.
Operating concerns Results structure of the Projects / market

segments that are supplied with products or
services.
3. Important Definitions in SAP
Company Code
 A company code is independent accounting entity (the smallest organizational element

for which a complete self contained set of accounts can be drawn up).
 Master data is created at company code level- balance for customers, vendors etc. are
also maintained at this level.
 The general ledger is kept at company code level and is used to create the legally
required balance sheets and profit and loss statements.
Profit Center
 Profit center is organizational unit in Accounting that reflects a management-oriented

structure of the organization for the purpose of internal control.
 Profit centers are used for internal management. Profit centers use key figures such as
return on investment and profit-sales ratio to evaluate performance.
4. Key Drivers
The key drivers that influence how the SAP Organisational Data Structures need to be
defined are as follows:
I. Strategic Vision of the Organization Strategic vision and operational vision of the
company
II. Common Chart of Accounts - To support the movement to a common,

organisation-wide chart of accounts

III. User Entry Difficulty - The impact on the end users’ ability to input data in the
system or to view or extract data from the system. Maximization of system
functionality and ease-of-use.
IV. Inter-Company Processing Efficiency - To automate posting of inter-company

transactions and minimize the number of such transactions
V. Legal Entity Reporting Capabilities - To provide the ability to meet legal reporting
requirements
VI. Management Reporting Capabilities - To support internal management reporting

 Locally
 Unit wise and Organisation-wide
VII. Master Record Maintenance - The impact on the volume and complexity of master
record creation and maintenance
VIII. SAP Recommended Approach - The consistency with Sap’s recommended

approach for utilization of the SAP hierarchy elements in order to effectively utilize
current and future functionality within SAP.
IX. Maintenance - Minimization of the system maintenance requirements both for day-
to-day operation and for future evolution of the business.
5. Organisational Structure Definition for SIPS
The purpose of this document is to explain the final recommendation for the SAP
Organisational Structure and the codification logic for the organisational elements to be used
in SIPS.
During Organization structure definition process the Core team undertook the following:
 Understanding of SIPS’s business as whole.

 Conduct Session 1 – Integrated business process overview
 Design a proposed organization structure.
 Conduct Session 2 – Definition of organization structure.
 Proposed options for Organization structure.
 Generated the Final Organization Structure List.
All the options were evaluated in depth by IBM consultants and “PARAM” core team from
SIPS.
After considering various guiding factors like Reporting Requirement particularly to

Regulatory Bodies and also segmenting on the lines Activity, Production and Services,
options were proposed jointly by IBM and core team.

6. Module wise SAP Organisation Structure
6.1 Financial Management & Controlling
The FI module handles the financial transactions for the organisation. It consists of General
Ledger Accounts Payable, Accounts Receivable, Asset Accounting and Treasury. The central
task of G/L accounting is to provide a comprehensive picture of external accounting and
accounts. Recording all business transactions (primary postings as well as settlements from
internal accounting) in a software system that is fully integrated with all the other operational
areas of a company ensures that the accounting data is always complete and accurate. Balance
sheets are traditionally produced from this module in SAP, as this is where the legal entity is
registered.
The CO module handles the cost and profitability accounting for the organization. It consists of
Cost Center Accounting, Product Costing, Profit Center Accounting and Profitability Analysis.
The controlling module specifically caters to internal management reporting requirements on
areas of cost analysis and control, evaluating profitability of business segments, variance
analysis and budgeting.
The key organization elements being used in FI in SIPS are:
 Company Code
 Credit Control Area
 Chart of Accounts
 Profit Center Accounting
The key organization elements being used in CO in SIPS are:
 Operating concern
 Controlling Area
 Cost Centre
6.1.1 Company Code
SAP Definition
Company Code represents a legal entity that requires a complete set of financial statements
including balance sheet. The Company Code is the key building block upon which all
Enterprise Units depend.
Assignments like home country, fiscal year, chart of accounts, currency and language are
defined for a company code.
Periods, postings, currencies, document types, number ranges and master data need to be
maintained at the company code level. Creating many company codes for a single legal
entity entails significant increase in master data and the need to perform additional
maintenance.
Transactional processing between Company codes requires that affiliates be set up as

customers & vendors to initiate inter company stock transfers and perform related
intercompany eliminations.

Design Rationale
In SIPS, company codes will be defined at the level at which a complete set of financial
statements (including the balance sheet and profit and loss statements) are required. The
company code structure in SIPS will be designed to meet the following:
 A structure which is easily consolidated to meet external reporting

 A structure that can easily provide the desired internal reporting and controls.
Codification Logic
In SAP, Company code is a 4 digit alphanumeric code.
In case of SIPS the following codification logic has been adopted.

 The codes will be four-digit numeric number with first digit 9 and 3 digits are serial
numbers starting with 001. Similarly for the purpose of creating Subsidiary company
of SIPS, the modalities shall be same and apply the same codification.
 All the JV company codes will start with J and rest 3 digits are serial numbers
starting with 001.
The codification logic for Business Lines company codes is as follows:
Sl. Company Description

No Code
1 9000 Shyam Indus Power Solutions Pvt. Ltd. (SIPS)
2 J001 Cobra Installations Y Services S.A-SIPS
3 J002 SIPS-Shriji Designs (JV)
4 J003 SIPS-UBC-Shriji Designs (JV)
5 J004 SIPS-CEC (JV CORE173-A)
6 J005 SIPS-MCPL-CEC (JV CORE164)
7 J006 SIPS-Umesh Bros(JV Core 136&137(Doubling Mod))
Assignments
Company codes defined in SAP will be assigned to Controlling area.
Many company codes can be assigned to the same credit control area. This enables
monitoring of credit for a customer across multiple company codes.
All company codes for which common cost controlling is to be carried out are assigned to the
same controlling area.
Sl. Company Code Controlling Area

No.
1 9000 9000
2 J001 9000
3 J002 9000
4 J003 9000
5 J004 9000
6 J005 9000
7 J006 9000

6.1.2 Credit Control Area
SAP Definition
Credit Control area is the organizational unit in an organization that specifies and checks
credit limits for customers. A credit control area can include one or more company codes.
The credit control area should be defined according to the areas of responsibility for credit
monitoring. Each credit area must have a currency assigned to it. A single credit limit can be
set for a customer across several credit areas. We can maintain a total credit limit for all
credit control areas and an individual credit limit for every credit control area.
Design Rationale
In case of SIPS, one single Credit Control Areas have been created, across Business Lines
Codification Logic
In SAP, the code for Credit Control Area is 4 digit alphanumeric (First Digit 9 and rest 3 digits
are serial numbers starting 001)
In case of SIPS, the following codification scheme has been adopted.
Sl. No. Credit Control Area Description

1 9000 Shyam Indus Power Solutions P Ltd
6.1.3 Chart Of Accounts
SAP Definition
Chart of Accounts is the highest level at which financial accounting information can be
consolidated. All G/L accounts must be assigned to a Chart of Accounts.
Design Rationale
All Business Lines of SIPS viz. the Business Lines will follow a uniform chart of accounts.
In SIPS, there will be one chart of accounts called SIPS. All company codes will be assigned
to the same chart of accounts. Chart of Accounts means the range provided for opening of
GL accounts under Group defined.
Sl. No. Chart of Accounts Description

1 9000 SIPS Operation Chart of Account
6.1.4 Operating Concern
SAP Definition
An operating concern is an organizational unit in a company for which the sales market has a
uniform structure. It represents the highest reporting level in Profitability Analysis.
The structure of CO-PA in any system is essentially determined by definition of the following
objects:
 Characteristics (profitability segments)

 Value fields, such as revenues, sales deductions, costs, quantities (only in costing-based
Profitability Analysis)
 G/L accounts (only in account-based Profitability Analysis)
Account-based profitability analysis can be used in addition to the costing-based profitability

analysis in case same operative chart of accounts is used across controlling areas for an
operating concern.
The information from sales orders, invoices, process orders, and cost centres are collected
to provide real time analysis of profitability.
Profitability at different levels can be reported based on various criteria at specified levels
e.g. product, customer, and distribution channel.
Design Rationale
There will be one operating concern defined for SIPS Corporation. Profitability analysis will
be done in various dimensions in this operating concern.
Sl. No. Operating Concern Description

1 9000 Operating Concern for SIPS
6.1.5 Controlling Area
SAP Definition
The Controlling Area is an organizational unit delimiting the organization's managerial

accounting operations. Generally, a n:1 relationship exists between the Company Code and
the Controlling Area. A Controlling Area can also incorporate several Company Codes to
take cross-company cost allocations into account. These Company Codes must all use the
same operational Chart of Accounts. All inter-organizational allocations refer only to objects
in the same Controlling Area.
Internal business transactions are reflected in the controlling area. Primary costs are
transferred from external accounting and classified by managerial accounting perspectives. If
the primary cost are direct costs, they are assigned directly to cost objects; if they are
indirect costs, they are assigned to cost centres or internal orders and assigned further using
internal allocation methods.
Design Rationale
There will be one controlling area called SIPS defined for SIPS. All company codes falling
under the umbrella of SIPS will be assigned to this controlling area. Company Code will be
assigned to this controlling area.
Assignments
Controlling Area ‘9000’ will be assigned to Operating Concern ‘9000’. It will be assigned to
the operating concern “9000” for purpose of profitability analysis.
The proposed assignment of Controlling Area to Operating Concern is mentioned below:
Sl. No. Controlling Area Description Operating

Concern
1 9000 CONTROLLING AREA FOR SIPS 9000

6.1.6 Cost Centres
SAP Definition
The cost center is an organizational unit in a controlling area representing a clearly delimited
location where costs occur. The organizational Business Lines can be made on the basis of
functional, locational or responsibility-related standpoints.
Cost centers are used for differentiated assignment of overhead costs to sales activities (cost
calculation functions) and in order to carry out differentiated controlling of costs occurring in
an organization (cost controlling function).
For the purposes of Overhead Cost Controlling, the cost centers are grouped together in
decision, control, and responsibility units. This structure is reflected in the Cost Center
Accounting (CO-OM-CCA) application component. A hierarchical cost center structure will be
defined in SAP to reflect cost centre groups and cost roll ups therein.
Design Rationale
In SIPS, the lowest unit at which it is desired to control costs will be created as a cost centre.
There will be a single cost centre hierarchy created to report costs for the entire corporation.
Cost centre groups will be created to report costs collectively for a group of cost centers. In ,
the lowest unit at which it is desired to control costs will be created as a cost centre. Cost
centre groups will be created to report costs collectively for a group of cost centers. The list
of cost centers for SIPS along with the codification logic and hierarchical assignments is
provided as Annexure 1.
COST CENTER NUMBER LOGIC
Detailing of cost centers will be listed in FI-CO Key data structure documents. However
codification logic will be numeric for cost centers. The codification in respect of sub cost
centres shall also be aligned and can easily identify by cost centre digits.
6.1.7 Profit Centers
SAP Definition
Profit center is organizational unit in Accounting that reflects a management-oriented

structure of the organization for the purpose of internal control.
Dividing company into profit centers allows to analyze areas of responsibility and to delegate
responsibility to decentralized units, thus treating them as "companies within the company".
Design Rationale
Since SIPS operates in a single segment (i.e. not having multiple segments as far as
segment reporting is concerned). However, more than one Profit Center may be created in
SIPS for units for which separate financial statement is required (Example can be proposed
power distribution unit which may require separate financial disclosure may be created as a
separate profit center in SIPS company code, if required).
Assignments
Profit center is basically assigned to Material/ Plant combination, Cost centers, Balance
related GL accounts.
Please refer Annexure A.1 for List of Profit Centers and assignment to Company Codes
Overall FI-CO Organisation Structure for SIPS:
CONTROLLING AREA
(SIPS)
PROFIT CENTER GROUP PROFIT CENTER GROUP…..

JV PROFIT CENTER GROUP JV PROFIT CENTER GROUP….
STATE 1 STATE 2…..
JV001 JV002…..
PG001 PG002…..
Profit Center Profit Center…. Profit Center Profit Center

Project 1 Project 2…. Project 3 Project 4
PC001 PC002…. PC003 PC004
Profit Center Profit Center

COMPANY CODE
Project 1 Project 1
SIPS JV001 JV001
JV COMPANY CODE JV COMPANY CODE

J001 J002

6.2 Material Management
The MM module handles the Materials Management transactions for the organization. It consists
of Consumption based planning, Purchasing, External service management, Inventory
management, Vendor evaluation etc.
The key organization elements being used in Material management and Planning in SIPS are:
 Plant
 Purchasing Organization
 Purchase Groups
 Storage Location
6.2.1 Plant
SAP Definition
The plant is an operating area or branch within a company.
A plant has its own material master data. Data can be maintained 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.
Design Rationale
SIPS being a project execution oriented organization, it has various projects for planning,
sales, inventory, delivery location / executor. Thus following scenarios arise with respect to
enterprise organization structure. The scenario and its pros / cons are detailed there in:
Scenario A - Project Wise Plant
 Each Customer Project is a plant & PS Project

 Each plant has minimum one storage location
 Multiple Storage Locations if geographically located at a distance
Pros Cons
 Clear inventory visibility, as Quantity  For each new Customer Project,
and Value can be seen at Plant level MM and SD configuration to be
 Plant wise Authorization is possible done
 Clarity in Site to Site transfers  Master data maintenance is more
 Standard Sub-Contracting Process
works more efficiently.
 Plant wise BOM can be used
 Service Receipt and Material
Consumption are done at the same
time
 Vendor wise Material reconciliation is
done
 Standard Reports can be used for
Material reconciliation
 Free issue material storage to handle
 Scrap Material storage to handle
 Fabrication Material and processing
handling
 Dismantle Material storage to handle

Scenario B – State Wise Plant
 Each State is a Plant

 Each Project Site is a Storage Location & PS Project
 If the Project Site is having multiple Stores, Each Store is created as a separate Storage
Location
Pros Cons
 Fixed number of Plants in the  Inventory visibility is not clear
system  Because at Storage location level,
 Master data maintenance is only Quantities are tracked, as
minimum Material Valuation is done at Plant
level
 To overcome this, we need to use
Project Specific Stock
 Project specific procurement does
not support standard sub-
contracting process, which is
essential for Material reconciliation
at SIPS
 Authorization restriction cannot be
done at Storage location level.
 Even though Service Receipt and
Material consumption can be done,
less control is there, as system will
not suggest Quantities; Also
Storage location needs to be
selected manually
 Material reconciliation is to be
developed as standard report will
not suffice the requirement
Recommendation:
Plant to be created Project wise and will attached to single profit centre
Codification Logic
In SAP, Plant is a 4 digit alphanumeric code. In case of SIPS, Plant code will be 4-digit
numeric.
Assignments
The codification logic for Plants and assignments to Company Codes is as per annexure A.2.
Please refer Annexure A.2 for List of Plants & assignment to Company Codes

Overall Inventory & Planning Structure
COMPANY CODE
SIPS 9000
CORPORTAE PLANT PROJECT 1 PROJECT 2 PROJECT 3

9000 PLANT 9001 PLANT 9002 PLANT 9003
STORES 1
SL01 PROJECT PROJECT PROJECT
STORE1 STORE1 STORE1
SURPLUS SURPLUS SURPLUS

STORE STORE STORE
SCRAP SCRAP
SCRAP
STORE STORE
STORE
6.2.2 Purchase Organization
SAP Definition
From the Materials Management and Purchasing view, the purchasing organization is
responsible for all purchasing activities (including the processing of requests for quotations and
purchase orders, for example).
Possible organizational forms
Purchasing function can be organized in the following ways:
 Corporate-group-wide purchasing
 Company-specific purchasing
 Plant-specific purchasing
All of these forms can co-exist within a single client.
Corporate-group-wide purchasing:
A purchasing organization is responsible for the purchasing activities of different company

codes. In this case, company code is not assigned to the purchasing organization, but company
code concerned for each individual purchasing transaction is specified. Plants from different
company codes are assigned to the purchasing organization.
Company-specific purchasing:
A purchasing organization is responsible for the purchasing activities of just one company code.
In this case, company code is assigned to the purchasing organization. The purchasing
organization may procure only for this company code. Plants of the company code concerned
only are assigned to the purchasing organization.
Plant-specific purchasing:

A purchasing organization is responsible for the purchasing activities of one plant. In this case,
the Plant and the company code of the plant is assigned to the purchasing organization. The
purchasing organization may procure for this plant only.
Note
If the work involves the mixture of the above organizational forms, in that case reference
purchasing organization is of significance.
It is possible to allow one purchasing organization to access the contracts and conditions of
another - also-called reference purchasing organization. This makes it possible for
advantageous terms negotiated by one purchasing organization to also be used by other
purchasing organizations.
Design Rationale
In SIPS, single Purchasing Organization will be responsible for purchasing activities for all
the plants.
Codification Logic
In SAP, Purchase Organization is a 4 digit alphanumeric code.
In case of SIPS codes will be four digits alphabetic. The codification logic for Purchasing
Organization is as follows:
Purchase Organization Description

9000 SIPS Purchase Organisation
Assignments
Purchase Organization will be assigned to all the Plants which will require purchasing via
that purchase organization. Assignments are as shown below:
Purchasing Purchasing Organization Plant

Organization Description Code Plant Description
9000 SIPS Purchase Organization 9000 SIPS
6.2.3 Storage Location
SAP Definition
A storage location is the place where stock is physically kept within a plant. In case of virtual
movement of stock through sub-con process or any other process without any physical stock
movement, such locations shall also be storage locations.
In case of physical movement of stock through sub con process to be converted via work in
progress method, such locations shall also be storage locations.
A storage location has the following attributes:
 There may be one or more storage locations within a plant.
 A storage location has a description and at least one address.
 It is possible to store material data specific to a storage location.

 Stocks are managed only on a quantity basis and not on a value basis at storage
location level. However any storage location can be easily valued in consolidation
with plant.
 Physical inventories are carried out at storage location level
 A storage location can be assigned to a warehouse number in the Warehouse

Management System . More than one storage location can be assigned to the same
warehouse number within a plant.
 Storage locations are always created for a plant.
Design Rationale
Each Purchased material Storage area and various despatching location shall be considered
as storage location. However for details, we need to refer Key data structure of Material
Management Module.
Codification Logic
In SAP, Storage Location is a 4 digit alphanumeric code.
In case of SIPS the codification logic for Storage location shall be defined in MM KDS
document.
Assignments
Storage Locations will be will be assigned to plants.
Overall Materials Management SAP enterprise:

6.3 Sales and Distribution
The organizational structure forms a framework in which all business transactions can be
processed. The structure is critical as it controls the design of the system and the way the
transaction data is captured. Sales organization, distribution channel and division, along with
the sales office, represent the organization structure in the sales and distribution module in
SAP.
The sales and distribution structure is integrated with the financial accounting and materials
management, structures through the assignments of company codes and plants.
The list of Organisation units being used in SIPS is as follows:
 Sales Organisation
 Distribution Channel
 Division
Design Rationale
Core team along with IBM have gone through the details of way of handling sales and have
gone through detailed legal and legal requirement.
6.3.1 Sales Organisation
SAP Definition
The organization in sales and distribution is represented in the system with the help of sales
organizations. Every sales organization stands for a selling unit in the legal sense, being
responsible, for example, for product liability and other recourse claims made by customers.
Regional subdividing of the market can also be carried out with the help of sales
organizations. Each business transaction is processed within a sales organization.
Design Rationale
In SIPS, the decision to have each single sales organisation as same as single Company
Codes in SAP drives the design of the organisation structure for Sales and Distribution
Module.
Codification Logic
The codification logic followed for Sales Organisation is as follows:
SAP Hierarchy Object Field Length Data Type Allocated Codification Scheme
Sales Organisation 4 Character Four digit alphanumeric
In SIPS, the sales organisations will be as per the following table:
Sales Description
Organisation
9000 Shyam Indus Power Solutions Pvt. Ltd.
Assignments
Sales Organisation  Company Code
Sales Description Company

Organisation Code
9000 Shyam Indus Power Solutions Pvt. Ltd. 9000

6.3.2 Distribution Channel
SAP Definition
In order to provide for the market in the best possible way, sales and distribution works with
various distribution channels. Typical distribution channels are, for example, wholesale trade,
retail trade, industrial customers or direct sales from plant.
Within a sales organization a customer can be supplied through several distribution

channels. In addition, the material master data relevant for sales, such as prices, minimum
order quantity, minimum quantity to be delivered and delivering plant, can differ for each
sales organization and distribution channel.
Design Rationale
In SIPS we have decided to have the distribution channels as shown in the table below. We
have captured the channel used for distribution of all products and services across divisions.
Distribution Channel Description

10 Distribution
20 Transmission
30 Civil Construction
40 Generation
50 Services
Codification Logic
The codification logic followed for Distribution Channel is as follows:
Distribution Channel 2 Character Two digit numeric
Assignments
Distribution Channel  Sales Organisation
Sales Description Distribution Description

Organisation Channel
9000 Shyam Indus Power Solutions Pvt. Ltd. 10 Distribution
9000 Shyam Indus Power Solutions Pvt. Ltd. 20 Transmission
9000 Shyam Indus Power Solutions Pvt. Ltd. 30 Civil Construction
9000 Shyam Indus Power Solutions Pvt. Ltd. 40 Generation
9000 Shyam Indus Power Solutions Pvt. Ltd. 50 Services
6.3.3 Division
SAP Definition
In the SAP R/3 System we can define a division-specific sales organization. Product groups,
i.e. divisions, can be defined for a wide-ranging spectrum of products. For every division we
can make customer-specific agreements on, for example, partial deliveries, pricing and terms
of payment. Within a division we can carry out statistical analyses or set up separate
marketing. Divisions are represented in SAP by 2 digit codes

Design Rationale
SIPS handles the sales in two major categorization which is their product line / business line.
Following will be two divisions for SIPS:
Division Description
10 Sales of Material
20 Services
30 Composite
40 Stock clearance
Codification Logic
The codification logic followed for Division is as follows:
Division 2 Character Alpha- Numeric
.
Assignments
Division  Sales Organisation
Sales Description Division Description

Organisation
9000 Shyam Indus Power Solutions Pvt. Ltd. 10 Sales of Material
9000 Shyam Indus Power Solutions Pvt. Ltd. 20 Services
9000 Shyam Indus Power Solutions Pvt. Ltd. 30 Composite
9000 Shyam Indus Power Solutions Pvt. Ltd. 40 Stock Clearance
6.3.4 Shipping Point
SAP Definition
Organizational unit in Logistics, which carries out shipping processing. The shipping point is
the part of the company responsible for the type of shipping, the necessary shipping materials
and the means of transport.
A shipping point can carry out shipping for several plants. The plant warehouse is determined
fro each shipping point and plant. This is where the goods are to be picked.
Design Rationale
Each location of SIPS defined as a Plant in SAP would also be represented as a Shipping
Point in SAP and would carry the same code. Thus there would be one Shipping Point
attached to each Plant.
Assignments
Shipping Point  Plant
Please refer Annexure A.3 for shipping points & Plants assignments

Overall Sales & Distribution SAP Enterprise:

6.4 Project Systems

7. Annexure A.1 - List of Profit Centers
7.1 List Profit center – Set 1
(Where only financial balances are available from legacy)
Profit Center
STATE Location PROJECT NAME
Code
FI01 C.G Gharghoda TRN 400 KVA
FI02 C.G Batari Control Room and Cable Trench
FI03 C.G Gharghoda TRN-Power Plant Lighting
FI04 C.G Patrapali Patrapali Sub Station
FI05 C.G Raipur EBOP
FI06 C.G Gharghoda TRN Pipe Line 1 & 2
FI07 C.G Chakabura 400 KV Transmission Line
FI08 C.G Gevra 33 KV Line TRN
FI09 Delhi Bawana RC-4600000890 (TPDDL)
FI11 Delhi SECTOR -11 ROHINI RC-4600002032 (TPDDL)
FI12 Delhi SECTOR -11 ROHINI RC-4600002026(TPDDL)
FI16 H.P Chamba Bid-18
FI17 H.P Chamba R-APDRP
FI18 H.P Una R-APDRP
FI19 H.P Mandi-1 33 KV Sub-Station
FI20 Haryana Bid-28 Bid-28
FI22 Haryana REC-99 REC-99
FI27 Haryana REC-112 REC-112
FI28 Haryana Balabghar NGR-Pay passing Arrangement
FI29 M.P Indor Feeder Separation
FI30 M.P Shivpuri Feeder Separation
FI31 M.P Ashok Nagar Feeder Separation
FI32 M.P Bhopal (MPWLC) Civil Works
FI33 M.P Gwalior D-8
FI34 M.P Gwalior D-9
FI35 Punjab Phagwara OYT
FI36 Punjab Punjab-Shivalik (malerkotla) HVDS
FI37 Rajasthan Chaksu/Bassi/Sikar/Kota/Kakroli/Bhiwadi NGR-Pay passing Arrangement
FI38 Uttar Pradesh Roza Railway GR-248
FI39 Uttar Pradesh Jinai Bid-521
FI40 Uttar Pradesh sirora Bid-522
FI41 Uttar Pradesh Simlana Bid-526

(Where Inventory & financial balances are available from legacy –Active Projects)
Profit Center
Code
9000 Delhi Delhi Rajouri Garden
9001 C.G Surajpur/Pathalgaon/Khairagarh/Kawa LT-ABC
rdha/Raipur
9002 C.G Gevra 33KV Binjhari Washery Line
9003 C.G Gevra Batari Civil (Club Building)
9004 C.G Chakabura Batari Electrifican Phase-2
9005 C.G Batari Sewerage tratment plant at Batari
9006 C.G Gevra Batari Street Lighting
9007 C.G Gevra S V Power Boundary Wall
9008 C.G Gevra 33 KV Batari Overhead line to
Batari
9009 C.G Gharghoda Earthern Dam Work
9010 C.G Gevra CC Road 2x135 ACB India
9011 C.G Gevra CC Road 1x300 MCCPL
9012 C.G Gharghoda TRN Utility Flats 16 Units
9013 C.G Gharghoda TRN Executive Flats 16 units
9014 C.G Gharghoda RCC Drain TRN 2x300 Power Plant
9015 C.G Gevra MCCPL Boundary Wall
9016 C.G Gevra Lift Instt. Batari Township
9017 C.G Gevra Batari Utility Flats 64 Units
9018 C.G Gevra Batari Executive Flats 96 Units
9019 C.G Gevra AMC 400 kv /132kv line 2x135
MW ACB to PGCIL Barari
9020 C.G Gharghoda TRN Power Plant Bitmeen Road
9021 C.G Gharghoda TRN Power Plant CC Road
9022 H.P Shimla R-APDRP
9023 H.P Bhattakufer Air Insulated Sub Station
9024 H.P Summer Hill Gas Insulated Sub Station
9025 H.P Taradevi Air Insulated Sub Station
9026 H.P Idgah Gas Insulated Sub Station
9027 H.P Solan R-APDRP
9028 H.P Baddi R-APDRP
9029 H.P Mandi-2 R-APDRP
9030 H.P Pandoh Gas Insulated Sub Station
9031 Haryana G-9
9032 Haryana Palwal/Meghpur/Punhana/Pakhal REC-127
9033 Haryana Kheri Chopta/Dhani Mirdad G-17

9034 Haryana Sonipat G-14
9035 Haryana Panipat RE-119
9036 Haryana Bawal HSIIDC
9037 Haryana Gurgaon G-2 Distribution
9038 Haryana Hassanpur G-19
9039 Haryana Gurgaon Ambiance Mall
9040 Haryana Rohtak Railway-GR 158
9041 M.P Guna RGGVVY Distribution
9042 M.P Bhopal/Gwalior D-14
9043 M.P Gwalior Sub Station ADB-Lot 2
9044 M.P Betul Feeder Separation
9045 Punjab Mohali Mohali
9046 Uttar Pardesh Shankargarh Railway-GR 173 A
9047 Uttar Pardesh Sitapur Railway-GR 164
9048 Uttar Pardesh Nihalgarh Railway-GR 136 & 137
9049 Uttar Pardesh Meerut Railway GR-272
9051 Uttar Pardesh Lucknow/Sohawal/ NGR-Pay passing Arrangement
Gorakhpur/Ballia/Allahabad/Fatehpur/
Maipuri/Kanpuri/Barailly
(For Joint Venture Company Codes )

Profit Center
Description
Code
J001 Cobra Installations Y Services S.A-SIPS
J002 SIPS-Shriji Designs (JV)
J003 SIPS-UBC-Shriji Designs (JV)

J004 SIPS-CEC (JV CORE173-A)
J005 SIPS-MCPL-CEC (JV CORE164)
J006 SIPS-Umesh Bros(JV Core 136&137(Doubling Mod))

8. Annexure A.2 - List of Plants
Plant Code STATE Location PROJECT NAME

9001 C.G Surajpur/Pathalgaon/Khairagarh/ LT-ABC
Kawardha/Raipur
9005 C.G Batari Sewerage treatment plant at Batari
9008 C.G Gevra 33 KV Batari Overhead line to Batari
9019 C.G Gevra AMC 400 kv /132kv line 2x135 MW ACB
to PGCIL Barari
9031 Haryana G-9
9032 Haryana Palwal/Meghpur/Punhana/Pakha REC-127
l
9046 Uttar Shankargarh Railway-GR 173 A
Pardesh
9047 Uttar Sitapur Railway-GR 164
Pardesh
9048 Uttar Nihalgarh Railway-GR 136 & 137
Pardesh
9049 Uttar Meerut Railway GR-272
Pardesh
9050 Uttar Meerut Railway GR-273
Pardesh
9051 Uttar Lucknow/Sohawal/ NGR-Pay passing Arrangement
Pardesh Gorakhpur/Ballia/Allahabad/Fate
hpur/Maipuri/Kanpuri/Barailly

9. Annexure A.3 - List of Shipping Points
9.1 Sales Shipping Location
Shipping Points STATE Location PROJECT NAME

9001 C.G Surajpur/Pathalgaon/Khairagarh LT-ABC
/Kawardha/Raipur

9005 C.G Batari Sewerage tratment plant at Batari
9008 C.G Gevra 33 KV Batari Overhead line to Batari
9019 C.G Gevra AMC 400 kv /132kv line 2x135 MW ACB
to PGCIL Barari
9031 Haryana G-9
9032 Haryana Palwal/Meghpur/Punhana/Pakh REC-127
al

9046 Uttar Pardesh Shankargarh Railway-GR 173 A
9047 Uttar Pardesh Sitapur Railway-GR 164
9048 Uttar Pardesh Nihalgarh Railway-GR 136 & 137
9051 Uttar Pardesh Lucknow/Sohawal/ NGR-Pay passing Arrangement
Gorakhpur/Ballia/Allahabad/Fat
ehpur/Maipuri/Kanpuri/Barailly
9.2 Sales Shipping Location for Returns
Shipping Points
for returns
R000 Delhi Delhi Rajouri Garden
R001 C.G Surajpur/Pathalgaon/Khairagarh LT-ABC
/Kawardha/Raipur
R002 C.G Gevra 33KV Binjhari Washery Line
R003 C.G Gevra Batari Civil (Club Building)
R004 C.G Chakabura Batari Electrifican Phase-2
R005 C.G Batari Sewerage treatment plant at Batari
R006 C.G Gevra Batari Street Lighting
R007 C.G Gevra S V Power Boundary Wall
R008 C.G Gevra 33 KV Batari Overhead line to Batari
R009 C.G Gharghoda Earthern Dam Work
R010 C.G Gevra CC Road 2x135 ACB India
R011 C.G Gevra CC Road 1x300 MCCPL
R012 C.G Gharghoda TRN Utility Flats 16 Units
R013 C.G Gharghoda TRN Executive Flats 16 units
R014 C.G Gharghoda RCC Drain TRN 2x300 Power Plant
R015 C.G Gevra MCCPL Boundary Wall
R016 C.G Gevra Lift Instt. Batari Township
R017 C.G Gevra Batari Utility Flats 64 Units
R018 C.G Gevra Batari Executive Flats 96 Units
R019 C.G Gevra AMC 400 kv /132kv line 2x135 MW ACB
to PGCIL Barari

R020 C.G Gharghoda TRN Power Plant Bitmeen Road
R021 C.G Gharghoda TRN Power Plant CC Road
R022 H.P Shimla R-APDRP
R023 H.P Bhattakufer Air Insulated Sub Station
R024 H.P Summer Hill Gas Insulated Sub Station
R025 H.P Taradevi Air Insulated Sub Station
R026 H.P Idgah Gas Insulated Sub Station
R027 H.P Solan R-APDRP
R028 H.P Baddi R-APDRP
R029 H.P Mandi-2 R-APDRP
R030 H.P Pandoh Gas Insulated Sub Station
R031 Haryana G-9
R032 Haryana Palwal/Meghpur/Punhana/Pakh REC-127
al
R033 Haryana Kheri Chopta/Dhani Mirdad G-17
R034 Haryana Sonipat G-14
R035 Haryana Panipat RE-119
R036 Haryana Bawal HSIIDC
R037 Haryana Gurgaon G-2 Distribution
R038 Haryana Hassanpur G-19
R039 Haryana Gurgaon Ambiance Mall
R040 Haryana Rohtak Railway-GR 158
R041 M.P Guna RGGVVY Distribution
R042 M.P Bhopal/Gwalior D-14
R043 M.P Gwalior Sub Station ADB-Lot 2
R044 M.P Betul Feeder Separation
R045 Punjab Mohali Mohali
R046 Uttar Pardesh Shankargarh Railway-GR 173 A
R047 Uttar Pardesh Sitapur Railway-GR 164
R048 Uttar Pardesh Nihalgarh Railway-GR 136 & 137
R049 Uttar Pardesh Meerut Railway GR-272
R050 Uttar Pardesh Meerut Railway GR-273
R051 Uttar Pardesh Lucknow/Sohawal/ NGR-Pay passing Arrangement
Gorakhpur/Ballia/Allahabad/Fat
ehpur/Maipuri/Kanpuri/Barailly

10. Sign Off Sheet
10.1 FICO Structure Sign Off
Name Designation Core Team / Signature

Process Owners
Neeraj Tiwari Sr. Consultant Consultant - IBM
Ashish Sharma Sr. Consultant & Consultant - IBM

Team Lead
Prabhat Kumar Core Team
Charu Jain Core Team
Rachana Daba Process Owner
Ravi Jain Process Owner
Rajesh Kumar Process Owner

10.2 Material Management Structure Sign Off

Process Owners
Sudhakara R. Manthini Sr. Consultant Consultant - IBM
Karan Bedi Dy. Manager Core Team
Nitesh Soni Executive Core Team
Manoj Jangra Executive Core Team
Jitendra Pruthi Dy. Manager – Core Team

Proc
Amit Kumar Executive Core Team
Ravi Bhandari Executive Core Team
Ashish Kumar IT-Executive Core Team
Saurabh Vashisht IT Core Team
Sribhagwan Sharma IT-Executive Core Team
Geetika Dahiya Maanger – Proc Process Owner
RajKumar DGM Process Owner
Amardeep Singh AGM (MM) Process Owner
Amarjeet Duhan AGM (Proc & Process Owner

Tendering)
Raj Kumar Singh AGM Process Owner
Sheetal Khurana CFO Process Owner

10.3 Sales Structure Sign Off

Process Owners
Ankur Agrawal Sr. Consultant Consultant - IBM
Abha Garg Asst. Manager Core Team
Satyavrat Sr. Executive Core Team
Nishu Sharma IT-SAP Core Team
Aditya Asati IT-Executive Core Team
Arun Chaudhary Manager Process Owner

10.4 Project System Structure Sign Off

Process Owners
Om Tiwari Sr. Consultant Consultant - IBM
Jaspal Sr. Maanger Core Team
Ashok Kumar IT – Executive Core Team
Mandeep Executive Core Team
Dheeraj Executive Core Team
Brijesh Executive Core Team
Gaurav Executive Core Team
Sunil Soni General Manager Process Owner
A. L. Mittal Sr. Advisor Process Owner


SIPS SAP Organization Structure - V1.5 - 31.08.2015 - With Comments - Accepted - Final

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SIPS SAP Organization Structure - V1.5 - 31.08.2015 - With Comments - Accepted - Final

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Project - PARAM

(SIPS SAP Implementation)

Phase 2 - Business Blueprint

SAP Organisation Structure

Author IBM & SIPS Core Team

Version Revision Date Revision Description Author Sign-off

Project Team Members from SIPS and IBM

SIPS SAP Organization Page 2 of 35 Version 1.0

SIPS SAP Organization Page 3 of 35 Version 1.0

The objectives of the SAP organisation structure is to:

2. Organisational Units in SAP

 The R/3 System (Client)

SIPS SAP Organization Page 4 of 35 Version 1.0

Business Structure Elements R/3 organizational units

Enterprise The R/3 System

Company Operating concern

Business location Plant

SIPS SAP Organization Page 5 of 35 Version 1.0

Reports on these elements

Company codes External reporting requirements (balance sheet,

Controlling areas Cost structure of the enterprise subgroups.

Operating concerns Results structure of the Projects / market

3. Important Definitions in SAP

 A company code is independent accounting entity (the smallest organizational element

 Profit center is organizational unit in Accounting that reflects a management-oriented

II. Common Chart of Accounts - To support the movement to a common,

SIPS SAP Organization Page 6 of 35 Version 1.0

IV. Inter-Company Processing Efficiency - To automate posting of inter-company

VI. Management Reporting Capabilities - To support internal management reporting

VIII. SAP Recommended Approach - The consistency with Sap’s recommended

5. Organisational Structure Definition for SIPS

 Understanding of SIPS’s business as whole.

After considering various guiding factors like Reporting Requirement particularly to

SIPS SAP Organization Page 7 of 35 Version 1.0

6.1 Financial Management & Controlling

The key organization elements being used in FI in SIPS are:

The key organization elements being used in CO in SIPS are:

6.1.1 Company Code

Transactional processing between Company codes requires that affiliates be set up as

SIPS SAP Organization Page 8 of 35 Version 1.0

 A structure which is easily consolidated to meet external reporting

In SAP, Company code is a 4 digit alphanumeric code.

In case of SIPS the following codification logic has been adopted.

The codification logic for Business Lines company codes is as follows:

Sl. Company Description

Company codes defined in SAP will be assigned to Controlling area.

Sl. Company Code Controlling Area

SIPS SAP Organization Page 9 of 35 Version 1.0

In case of SIPS, the following codification scheme has been adopted.

Sl. No. Credit Control Area Description

6.1.3 Chart Of Accounts

Sl. No. Chart of Accounts Description

6.1.4 Operating Concern

 Characteristics (profitability segments)

Account-based profitability analysis can be used in addition to the costing-based profitability

Sl. No. Operating Concern Description

6.1.5 Controlling Area

The Controlling Area is an organizational unit delimiting the organization's managerial

The proposed assignment of Controlling Area to Operating Concern is mentioned below:

Sl. No. Controlling Area Description Operating

SIPS SAP Organization Page 11 of 35 Version 1.0

COST CENTER NUMBER LOGIC

6.1.7 Profit Centers