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Organizational Structures in SD

The document discusses organizational structures in SAP R/3, including sales organizations, distribution channels, divisions, sales offices, sales groups, and shipping points. It describes how these structures represent and organize a company's legal structure, sales activities, and logistics operations. Key relationships are defined, such as the link between sales organizations, company codes, and plants to integrate sales with accounting and materials management.

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95 views

Organizational Structures in SD

The document discusses organizational structures in SAP R/3, including sales organizations, distribution channels, divisions, sales offices, sales groups, and shipping points. It describes how these structures represent and organize a company's legal structure, sales activities, and logistics operations. Key relationships are defined, such as the link between sales organizations, company codes, and plants to integrate sales with accounting and materials management.

Uploaded by

Babu
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Organizational Structures in SD

Use

In the SAP R/3 System you can use several structures to represent
the legal and organizational structure of your company. The
organizational structures form a framework in which all business
transactions can be processed.

Integration

You link the organizational structures in SD with those in Financial


Accounting and Materials Management.

Activities

You maintain and assign the organizational units in Customizing for


the enterprise structure.

Sales organization

Definition

The sales organization is an organizational unit within logistics, that


structures the company according to its sales requirements.

Use

A sales organization is responsible for the sale and distribution of


goods and services.

It represents the selling unit as a legal entity. It is responsible for


product guarantees and other rights to recourse, for example.
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.
The sales organization must be specified in all sales documents. It is
therefore available for all basic functions of SD (such as pricing,
availability, etc.).

Structure

A sales organization can be subdivided into several distribution


chains which determine the responsibility for a distribution channel.

Several divisions can be assigned to a sales organization which is


responsible for the materials or services provided.

A sales area determines which distribution channel can be used to


sell the products from one division in a sales organization.

Integration

Each sales organization is assigned exactly one company code for


which you enter all accounting details of the sales organization.

A distribution chain can be active for several plants and the plants
can be assigned to different company codes. If the sales organization
and plant are assigned to different company codes, an internal billing
document is sent between the company codes before the sales
transactions are entered for accounting purposes.

Distribution channel

Definition

The distribution channel represents the channel through which


salable materials or services reach customers. Typical distribution
channels include wholesale, retail and direct sales.

Use

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.

Structure

A single distribution channel can be assigned to one or more sales


organizations.

Division

Definition

In the SAP R/3 System you 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 you can make customer-specific agreements on,


for example, partial deliveries, pricing and terms of payment. Within a
division you can carry out statistical analyses or set up separate
marketing procedures.

Use

The organization in Sales is represented by the elements sales office,


sales group and salespersons. The following figure displays a sample
organization in business development and sales.

Sales office

Geographical aspects of the organization in business development


and sales are defined using the term sales office. A sales office can
be considered as a subsidiary. A sales office establishes contact
between the firm and the regional market.

The branch of a firm in Hamburg, main street 1 can


represent a sales office

Sales group

The staff of a sales office may be subdivided into sales groups. For
example, sales groups can be defined for individual divisions.

Salespersons

You can maintain personnel master records for sales representatives


in your company. In the personnel master record, you assign the
salesperson to the sales office and the sales group.

You can also enter the system user name of the sales person. This
allows mails to be sent to the salesperson (define the partner function
for salespersonnel in the sales document).

Integration

Sales offices are assigned to sales areas. If you enter a sales order
for a sales office within a certain sales area, the sales office must be
assigned to that area.

The sales groups are assigned to the sales offices.

The salespersons are assigned to the sales group and the sales
office via the personnel master record.

Organization in Shipping and Transportation

Use
Independent organizational entities, such as shipping points, are
responsible for scheduling and processing deliveries to customers, as
well as replenishment deliveries to your own warehouses.

A delivery is always carried out by one shipping point only. The


shipping point depends on the following criteria:

 Delivering plant

 Type of shipping (for example, train, truck)

 Loading equipment necessary

Loading Point

Shipping points can be subdivided into loading points. For example,


ramp 1, ramp 2 and ramp 3 belong to the shipping point Forwarding
depot.

The following figure displays a possible organization in shipping.

Transportation Planning Point

The transportation planning point is an organizational unit in


Logistics, responsible for planning and processing transportation
activities.

It organizes the responsibilities in a company, e.g. according to


shipment type, mode of transport or regional departments.
Integration

The shipping point is assigned to a plant.

Loading points are assigned to shipping points.

Organizational Structures in Accounting

A group can be represented in the system using the terms client and
company code. Generally, a client represents a group, while a
company code represents a company in the sense of an independent
accounting unit. Company codes are independent from each other in
the legal sense.

The following figure illustrates how the client is subdivided in


company codes.

Organizational Structures in Material Management

To monitor the stock of material it is necessary to be able to store in


the system the locations at which materials are kept. You can do this
using the terms plant and storage location. A plant can either be a
place of production or a single storage location, or a combination of
closely situated storage locations where stock is kept.

Every plant is assigned to a company code. This ensures that stocks


and stock values can be managed separately in each company.

The following figure illustrates how the client is subdivided in plants


and storage locations.

Link between Sales and Distribution and


Accounting
By assigning sales organizations and plants you create a link
between company codes and sales organizations. A plant, though
always linked to one company code, can be assigned to different
sales organizations. Within a company code several sales
organizations can be active. Business transactions can also be
carried out between different company codes (for example, during
inter-company sales processing).

The following figure displays possible assignments of company


codes, sales organizations and plants.

Plants 1, 2 and 3 belong to company code 1. Sales organization 1


uses plants 1 and 2. Sales organization 2 uses plants 2 and 3. Sales
organizations 1 and 2 can make cross-company sales for goods from
plants 4 or 5.
Link to Materials Management Structure

The plants allowed for sales are determined for each sales
organization according to the distribution channel, so that a sales
organization can sell goods from several plants. A plant can be
assigned to different sales organizations. All of these sales
organizations can sell from that plant.

You can differentiate further between the plants belonging to a sales


organization from the sales view using the distribution channel. For
certain plants within a sales organization, the distribution channel
"sales from plant" is allowed, but not for others.

The following figure shows an assignment of sales organizations and


plants.

 Sales organization 1000 sells from plants 1000 and 2000


 Sales organization 2000 only sells from plant 2000
 Sales organization 3000 only sells from plant 3000

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