Organization Structure:

The Structure of SAP SD Master Data:

Master data forms the basis of the SD processing. Master data is the responsibility of all modules, as each module has an element of it. However, many other modules other than SD, such as PP, FI, AND CO, will access the SD master data. The structure of this master data represents how the system is to perform in the future. It is the highest level of data and thus it has the largest effect on the standard business process. Master data in SD is divided into three main areas:

Organizational Data: This is the structure of the company, whereby each area of the business is represented by a hierarchical element. For example, a sales area is constructed of a sales organization, a distribution channel, and a division. The Finance module uses the highest form of master data, which is the “company code”. The SD module integrates with this company code via the sales organization. Thus, due to the link between the sales organization and the company code in Finance, SAP knows which company code to post a sales transaction to. This is based on the sales organization in the sales order.

Customer and Material Master Data: As goods and services are sold by the company, for which the organizational data has been maintained, we need to represent this material and service data in our system as well as maintain and represent all our different sold-to-parties and partners.

Document Master Data: Business transactions are stored in the form of documents. These SD documents are structured in such a way that all the necessary information is stored in a systematic way.

Global Settings: This area defines the country keys and currencies. This data is application independent; however, these settings are a prerequisite for handling all business transactions.

Organizational Data: You must set the organizational data in SAP before you can process SD transactions. For example, without a sales organization, it is not possible to create a sales order in SAP. This data reflects the structure of your business. Every transaction occurs within this structure. The organizational data is like the steel girders in a building, so setting them up correctly is essential to a sound structure.

Relationships

Company-to-Company code: One Company can have many company codes. But one company code has to be assigned to one company. So the relation is one to many.

Company code to Sales Organization: One company code can have many sales organizations. But one sales organization has to be assigned to one company code. So the relation is one to many.

Sales Organization to Distribution Channel: One sales organization can have many distribution channels. One distribution channel can be assigned to many sales organizations. So the relation is many to many.

Sales Organization to Division: One sales organization can have many divisions. One division can be assigned to many sales organizations. So the relation is many to many.

Distribution Channel to Division: One distribution channel can have many divisions. One division can be assigned to many distribution channels. So the relation is many to many.

NOTE: Division is always sales organization specific.

If sales organization wants to use a plant that plant must be assigned to sales organization.

Define Enterprise Structure:

Company: [RCOMP] Company is nothing but it is a client to whom we are going to implement SAP. It represents a corporate group. It is the highest organizational unit in the enterprise structure.

Path:

 IMG

 Enterprise Structure

 Definition

 Financial Accounting

 Define Company

 Click on New Entries on the application toolbar

 Define your company by filling the data in the required fields

 Save and Edit

Company Code: [BUKRS] Company code is nothing but it is an independent organization unit that represents subsidiary of company. It has his own set of database tables from which we can drawn out reports Ex: Balance sheets Profit and Loss accounts that are required by law and those reports can be consolidated at company code level. One company can have many company codes. It means one company code should be assigned to only one company. So the relationship between company and company code is one to many. It means company code should be assigned to company.

Path:

 IMG

 Enterprise Structure

 Definition

 Financial Accounting

 Edit, Copy, Delete, Check company code

 Edit company code data

 Click on New Entries on the application toolbar

 Define your company code by filling the data in the required fields

 Save and Exit

NOTE: Company and company code defines and maintain by FI/CO consultants.

Sales Area: Sales area is not a physical entity it is only represents the combination of physical organizational unor entities that are sales organization, distribution channel, and division. This sales area can be used to refer certain

sales transaction.

Sales Organization: [VKORG] Sales organization is an organizational unit that sells and distributes negotiates terms of sale, and is responsible for these transactions. It is also responsible for business daily operation as well as legal obligations also. One company code can have number of (many) sales organizations. It means one sales organization should be assigned to only one company code. So the relationship between company code and sales organization is one many. It means sales organization should be assign to company code.

Path:

 IMG

 Enterprise Structure

 Definition

 Sales and Distribution

 Define, Copy, Delete, Check sales organization

 Define Sales Organization

 Click on New Entries on the application toolbar

 Define your Sales Organization by filling the data in the required fields

 Save and Exit

Note: Check Rebate processing active if you want to process “Rebate” for particular customer and for particular

material. For this (3) three main control parameters should be activated.

A. In definition of sales organization “Rebate” processing active should be check.

B. In customer master (payer) “Rebate” should be active

C. In billing document (F2) “Relevant for Rebate” should be activate.

Note: Due to system performance deactivates these (3) three control parameters if you are not going to process rebate.

Distribution Channel: [VTWEG] A distribution channel is a channel through which materials or services reach customers. Typical distribution channels include wholesale, retail, and direct sales.One sales organization can have many distribution channels and one distribution channel can be assign to many sales organizations. So the relation ship between sales organization and distribution channel is many to many. It means distribution channel should be assign to sales organization.

Path:

 IMG

 Enterprise Structure

 Definition

 Define, Copy, Delete, Check distribution channel

 Define distribution channel

 Click on New Entries on the application toolbar

 Define your distribution channels by filling the data in the required fields

 Save and Exit

Division: [SPART] A division is a product group that can be defined for a wide-ranging spectrum of products. It is a group or range of products.One sales organization can have many divisions and one division can be assign to many sales organizations. So, the relationship between sales organization and division is many to many. It means division should be assign to sales organization.

Path:

 IMG

 Enterprise Structure

 Definition

 Logistic – General

 Define, Copy, Delete, Check division

 Define division

 Click on New Entries on the application toolbar

 Define your division by filling the data in the required fields

 Save and Exit

Sales Office: [BKBUR] Geographical aspects of the organization in business development and sales are defined using the term “sales office”. It is a geographical aspect of sales area. A sales office in turn assigned to a sales area. Sales area can have number of sales offices that means sales office should be assign to sales area.

Path:

 IMG

 Enterprise Structure

 Definition

 Sales and Distribution

 Maintain sales office

 Click on New Entries on the application toolbar

 Define your sales office by filling the data in the required fields

 Save and Exit

Sales Group: [VKGRP] The staff of a sales office may be subdivided into sales groups. For example sales group can be defined for individual divisions. The group of employees under one sales office is called as sales group. Sales office can have number of sales groups that means sales groups should be assign to sales office.

Path:

 IMG

 Enterprise Structure

 Definition

 Sales and Distribution

 Maintain sales group

 Click on New Entries on the application toolbar

 Define your sales group by filling the data in the required fields

 Save and Exit

NOTE: Sales area, sales office, sales group, shipping point always defined and maintained by SD consultants. Plant: [WERKS] Plant is an independent organizational element where we manufacture or kept goods and services. Company code can have number of plants. It means plant should be assign to company code. One plant can be assign to several company codes through sales organization and distribution channel. Plant is an independent organizational element where we produce goods and service. One sales organization can do business from number of plants. The plant that defined under one company code can provide the goods and services to another sales organization that has been defined under another company code (inter company sales).

Path:

 IMG

 Enterprise Structure

 Definition

 Logistics – General

 Define, Copy, Delete, Check plant

 Define plant

 Click on New Entries on the application toolbar

 Define your plant by filling the data in the required fields

 Save and Exit

Storage Location: [LGORT] Storage location is nothing but subdivision of plant. A storage location is, as the name says, storage is for the stock in a plant. Plant can have number of storage location. That means storage location should be assign to plant.

Path:

 IMG

 Enterprise Structure

 Definition

 Material Management

 Maintain storage location

 Specify the plant to which we are going to define this storage location in the work area [Ex: 100]

[This is internal assignment of storage location to plant]

 Click on continue button or press ENTER

 Click on New Entries on the application toolbar

 Define your storage location by filling the data in the required fields

 Save and Exit

NOTE: Plant and storage location is defined and maintained by MM consultants.

Shipping Point: [VSTEL] Shipping point is an independent organizational unit and it is the place for departure or receiving point for product (movement). The deliveries (inbound/outbound) should/can takes place from single shipping point. They are the top level of the organization in shipping. A shipping point is assigned one or more plants and can be subdivided into several loading points. It

means shipping point should be assign to plant.

Path:

 IMG

 Enterprise Structure

 Definition

 Logistics Execution

 Define, Copy, Delete, Check shipping point

 Define shipping point

 Click on New Entries on the application toolbar

 Define your shipping point by filling the data in the required fields

 Save and Exit

 Select our shipping point and click on details icon on the application tool bar

 Location:

Country: Where the shipping point existed. Departure zone: The value of this field will be taken into consideration to determine “ROUTE” for a line item in the sales order.

 Time section:

Factory calendar: We can assign a factory calendar to one shipping point in which we maintain public

holidays, working days for this shipping point. So that shipping point works accordingly.

Working times: We can assign working times for shipping point in shift wise.

 Determine time:

Determine loading time: We can specify the loading time for particular shipping point to determine

automatically for particular line item in the sales order at the time of delivery processing.

Loading time can be proposed from “ROUTE” also.

Determine picking and packing times: We can specify picking and packing times to be determined

automatically by the system for a line item in the sales order from the shipping point.

Picking and packing can be proposed form “ROUTE” and shipping point.

 Rounding workdays: We can specify working days to be rounded ships.

 Picking confirmation: We can create transfer order from the warehouse subject to picking confirmation from shipping point.

Assignment of Enterprise Structure

In the assignment of organizational data, you create the linking that integrates the different modules in the system. After you have defined your data and the other modules have defined theirs, such as FI for company codes and MM for plants, it is time to assign the SD organizational data.

Company to company code:

Path:

 IMG

 Enterprise structure

 Assignment

 Financial accountancy

 Assign company code to company

 Click on position button

 Choose our company code from position button

 Specify our company code in company field and press ENTER

 Save and Exit

Sales organization to company code: Transaction code: OVX3

Path:

 IMG

 Enterprise structure

 Assignment

 Sales and distribution

 Assign sales organization to company code

 Click on find button on the application tool bar

 Choose our company code form find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our sales organization from the list and press ENTER

 Save and Exit

Distribution channel to sales organization: Transaction code: OVXK

Path:

 IMG

 Enterprise structure

 Assignment

 Sales and distribution

 Assign distribution channel to sales organization

 Click on find button on the application tool bar

 Choose our sales organization from find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our distribution channels from the list and press ENTER

 Save and Exit

Division to Sales organization: Transaction code: OVXA

Path:

 IMG

 Enterprise structure

 Assignment

 Sales and distribution

 Assign division to sales organization

 Click on find button on the application tool bar

 Choose our sales organization from find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our divisions from the list and press ENTER

 Save and Exit

NOTE: How many distribution channels can be assigning to one “sales area”?

ANS: Only one

Setup sales area: Transaction code: OVXG

Path:

 IMG

 Enterprise structure

 Assignment

 Sales and distribution

 Setup sales area

 Click on find button on the application tool bar

 Choose our sales organization form find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our distribution channels form the list and press ENTER

 Select distribution channel

 Click on assign button again

 Select our divisions from the list and press ENTER

 Repeat the same process for all distribution channels to setup all sales areas

 Save and Exit

Sales office to sales area: Transaction code: OVXM

Path:

 IMG

 Enterprise structure

 Assignment

 Sales and distribution

 Assign sales office to sales area

 Click on find button on the application tool bar

 Choose our sales area [sales organization] from find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our sales office from the list and press ENTER

 Repeat the same process for remaining sales areas

 Save and Exit

Sales group to sales office: Transaction code: OVXJ

Path:

 IMG

 Enterprise structure

 Assignment

 Sales and distribution

 Assign sales group to sales office

 Click on find button on the application tool bar

 Choose our sales office from the find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our sales group from the list and press ENTER

 Save and Exit

Plant to company code: Transaction code: OX18

Path:

 IMG

 Enterprise structure

 Assignment

 Logistics – General

 Assign plant to company code

 Click on find button on the application tool bar

 Choose our company code from the find button

 Select it by double clicking on it

 Click on assign button on the application tool bar

 Choose our plant from the list and press ENTER

 Save and Exit

Sales organization – Distribution channel – Plant (sales line): Transaction code: OVX6

If the plant gets the material from another plant, that has been defined under another company code. That plant should be assign here for inter company sales.

Path:

 IMG

 Enterprise structure

 Assignment

 Logistics Execution

 Assign shipping point to plant

 Click on find button on the application tool bar

 Choose our shipping point from the find button

 Click on assign button on the application tool bar

 Choose our shipping point from the list and press ENTER

 Save and Exit

To see our company structure

 Type “EC02” transaction code in the easy access menu

 Click on structure icon on the application tool bar [shift + F1]

 Click on the navigation icon on the application tool bar [control + F3]

 Click on find button on the application tool bar [control + F]

 Enter our company code and press ENTER

Here we can see our company structure