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SAP ORGANIZATION STRUCTURE

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SAP ORGANIZATION STRUCTURE


SAP Hierarchy, or Organizational Structure, is the fundamental
functional architecture within the SAP system. It must be defined in
order
to use theStructure.
SAP.
Enterprise
o Company Code.
o Sales Organization.
o Distribution Channel.
o Division.
Sales Area.
Sales Office
Sales Group
Shipping.
Shipping Point .
Plant

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SAP ENTERPRISE STRUCTURE


There are various SAP organizational units that can be
mapped to business structure based on the real world
business requirements such as:

o
o
o
o
o

Company Code
Plant
Storage Location
Sales Organization
Distribution Channel etc.

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SAP ENTERPRISE STRUCTURE

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COMPANY CODE
Smallest 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
Function of Sales Organization,
sheet and the profit and loss
o A legal entity and independent accounting unit .
statement.

o A company code level we create:


o Balance Sheets required by law.
o Profit and Loss statement.

o Highest organization entity for SAP FI.

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SALES ORGANIZATION
Thesales organizationrepresents the
selling unit in the legal sense. It is
responsible for example for product
liability and other rights of recourse;
customer deliveries; business partner
contacts;
and
direct
mailing
campaigns. It also helps us to offset
business operations internally.

Function of Sales Organization,


Distributing goods and services.
Negotiating sales conditions.
Product liability and rights of recourse.

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SALES DISTRIBUTION CHANNEL


The distribution channel represents the
channel through which salable materials
or services reach customers. Typical
distribution channels include wholesale,
retail and direct sales.

Function of Distribution Channel,


Through which materials reach the customer.
Represents the distribution of goods and/or services to
customer.
Ex: Whole sale trade, retail trade, internet trade and so on.

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SALES DIVISION
In the SAP System you can define a
division-specific
sales
organization.
Product groups, i.e. divisions, can be
defined for a wide-ranging spectrum of
products.

Function of Distribution Channel:


Represents a product line, Ex: Motorcycles, Spare parts,
Services and so on.

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SAP SALES AREA


SD is organized according to sales
organization, distribution channel
and division. A combination of
these three organizational units
forms the sales area.

Function of Sales Area:


Combination of sales organization, distribution channel, and
division.
Defines the distribution channel, that a sales organization
uses to sell products of a certain division.

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SAP 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.
Function of Sales Office:

They can be used for reporting purposes. Sales offices are


optional.

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

Function of Sales Group:


They can be used for reporting purposes.

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SAP SHIPPING POINT


Shipping points, are responsible for
scheduling and processing deliveries
to
customers,
as
well
as
replenishment deliveries to our own
warehouses.

Function of Shipping Point:


Shipping is an integrated module of SD processing.
The shipping point is the highest-level organizational unit of
shipping, that controls the shipping activities.
Each outbound delivery is processed by exactly one shipping
point.

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SAP PLANT
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.

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SAP INTEGRATION LINKS


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.
We 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.

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SAP INTEGRATION LINKS


By assigning sales organizations
and plants we 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).

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other books

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This
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contain
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configuration, user guide, questions and
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