SAP Sample

Organization structure
Company
1000
Operating concern:- An operating concern represents an organizational unit in your company for which the sales
market has a uniform structure.

Controlling:- Controlling provides you with information for management decision-making. It facilitates

coordination, monitoring and optimization of all processes in an organization. This involves recording both the
consumption of production factors and the services provided by an organization.

Company code:- Company code is an Organizational unit of external accounting for which a complete, self-
contained set of accounts can be created. This includes the entry of all transactions that must be posted and the
creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss
statement.

Credit control area :- 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. A credit control area also can be assigned to one or more credit segments to control and reporting the
credit worthiness of customer.
Sales area:-In SAP, Sales area is a combination of three
organizational units i.e. Sales organization, Distribution channel
and Division. The sales area represents the basic sales process
of company and uses to maintain master data, to configure the
documents to process documents (by customers) and generate
reports

Sales office:-Sales Office is an organizational unit which can use

as a Main/branch office. Sales Office contains group of sales
persons working to perform the direct or indirect sales and
services.
• A sales office can be assigned to one or more Sales
Organizations.
• A sales office can be divided into several sales groups.
• A sales office has an address.
• The sales office can be used as a selection criterion for
reporting.

Sales group:-Sales Group is the group of sales persons working

for various purposes. Sales Group is an optional element in SAP
SD organization structure.
• A sales group can be assigned to one or more sales offices.
• Sales employees can be assigned to a sales group.
• The sales group is a selection criterion for reporting .
Sales Organization:- Sales organization is a logical entity in SAP system to represent all Sales and distribution system
functionalities. A sales organization is assigned to exactly one company code in SAP. Due to this reason segments like
Mobility, Aftersales, Infrastructure engineering, Healthcare, Power & energy, building services and Agri will have additional
Sales Organizations created under different company codes.
• one or more plants can be assigned to one sales organization.
• The sales organization has an address similar to company code.
• Business Partner and Material Master data can be extended to multiple sales organizations.
• Multiple number of sales document types can be assigned to one or more sales organizations to perform various types of
sales processes.
• Multiple number of sales offices and sales employees can be assigned to one or more sales organizations.
• A sales organization can have their own statistics currency.

Distribution channel:-The distribution channel represents the channel through which sellable materials or services reach to
customers. Typical distribution channels include wholesale, retail and direct sales.
• A distribution channel can be assigned to one or more sales organizations.
• A distribution channel can be used to determine customers or materials as well as pricing and reporting.

Division:-The division is one of the organizational units in Sales & Distribution and is also required for business area account
assignment for logistics transactions in Financial Accounting.
• A division can be assigned to one or more sales organizations.
• A division can be assigned to one or more distribution channels.
• A division can be used to determine customers, materials, pricing and reporting.
Purchase Organization:-The purchasing organization is an organizational unit which procures articles and negotiates general
purchase price conditions with vendors. It is responsible for all purchasing transactions in the company.

Purchasing Group:-A purchasing group is a key for a buyer or group of buyers in SAP ERP. It is responsible for the
procurement of a material or class of materials, and is the principal channel for a company's dealings with its suppliers

Plant:-A plant is an operational facility within a company code (e.g. a production facility, regional or branch office A plant can be
assigned to several combinations of sales organization and distribution channel.

Shipping point:- Shipping point is a place or location where the goods and services are delivered to the customers. Shipping
point is an independent organizational unit in SAP SD module and it is responsible for processing inbound and outbound
deliveries.
• The shipping point is the top level in the organization for shipping.
• A shipping point can be allocated to one single or several plants.
• A shipping point can be divided into several loading points.
• A delivery is always initiated from exactly one shipping point, meaning all items of a delivery belong to one shipping point.
Groups of deliveries also belong to exactly one shipping point.
• The shipping point can be proposed automatically during order processing depending on the plant, loading group, and
shipping condition.
• A shipping point has an address.
• The shipping point is used as a selection criterion for lists of deliveries and the delivery worklist.
• The shipping point is used as a selection criterion for processing deliveries like picking or goods issue.
• Each supplying plant should be linked with one Shipping point as minimum system requirement.

Storage Location:-Storage location is the sub-division of plant where the stocks are physically stored and maintained within a
plant. Each storage location can have its own address within a plant.