SAP SD Organizational Structures

SAP Training : SD00
Organisation in Sales and Service
24/09/2007
Agenda
Introduction
Objectives & Operational target
Organizational structure overview
Organizational structure for sales
Organizational structure for logistics
Organizational structure for service
Summary
Glossary
Appendix
Business Case
Introduction
The objective of this training is to :
Understand the purpose and assignment of enterprise structures

required for processing documents and master data in Sales and
Service
Describe the essential characteristics of these organizational
elements
Identify the organizational elements and structures of SAP DEMO
COMPANY
Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Organizational structure
An organizational structure will be defined in SAP R/3 to :

Represent the different business entities of a company/group
Drive the operational links among them
Maintain master data
Enter and store transactional data
Track data to extract and report it
The enterprise structure for sales and service enables to

answer the question :
WHO can sell WHAT products/services to WHICH customers from
WHERE ?
The enterprise structure definition in SAP is the prerequisite for all functional activities
Keep the structure simple mainly for data maintenance reasons
Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Purchasing Regional
Organization Purchasing
Warehouse
Client BP0X Group 001 BP0X Division 01
Company
Division 01 Code BP0X Intercompany Processing
Sales
Organization
BP0X
Company
Code BP01
Controlling
Production Area BP01
Plant BP01
Sales
Organization
BP01
Regional
Purchasing Distribution Warehouse
Organization Center BP02 Purchasing
BP03
BP01 Group 001
Different entities are used for each business area and are grouped by module
They are defined at several levels in SAP R/3
Organizational elements represent the legal and

organizational view of an enterprise in R/3.
Master data and transactions are created for existing
organizational elements.
The enterprise structure of an organization will be defined
based on the business processes that are carried out in that
organization.
Master data maintained and documents processed are always relevant for certain
entities in the structure
Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Sales Group
Sales Office 001
Client BP0X BPX
Division 01
Company Intercompany Processing

Code BP0X
Sales
Organization
Sales
BP0X
Organization
BP01
Company
Code BP01 Controlling
Area BP01
Distribution Channels :
01 (Direct Sales)
02 (Wholesale)
Sales Office 03 (Intercompany)
Division 01
BP0X
Sales Group Sales Group
BP1 001
Organizational elements are defined at several levels in SAP R/3

SD acronism refers to :
SALES : all selling activities to a customer
DISTRIBUTION : all logistics activities to deal with products
Entities used for SD activities are divided into 2 main categories :
sales / logistics
To process a complete SD flow, some entities are mandatory in
the structure, whereas others are optional
SD uses its own organizational elements:
Sales organization
Distribution channel
Sales division
SD also uses organizational elements from other modules :
Company code
Plant
SD uses its own entities as well as the ones from other modules (FI, MM..)
Mandatory entities
Mandatory entities for sales (at least one existing value in

the structure) :
Company code
Sales organization
Sales division
Make sure you define the mandatory entities for SD activities processing in SAP R/3
Optional entities
Optional entities for sales :
Sales office
Sales group
Salesman (using HR tables)
Make sure you really need optional entity before using them in the structure
Company Code
Legal entity that represents an
independent accounting unit.
Information maintained at company code
level are relevant for :
The required financial reports
All accountable transactions required for
an individual account closing :
Balance sheets
Profit and loss statement
May represent a company or a
subsidiary of a corporate group in SAP
R/3.
At least one company code is mandatory in the structure

Company Code
The company code is

required to create the
financial data in a customer
master
Company code - Customizing information
Define company code :

Enterprise Structure > Definition > Financial Accounting > Define
company
Customizing activities regarding financial entities are executed by FI consultants.

Sales Organization
Responsible for :
Negotiating sales conditions
selling and distributing goods and
services to the customers
Dealing with customers complaints
A sales organization may :

Represent a regional, national or international subdivision of a
marketplace.
is uniquely assigned to a company code, however a company code
may have more than one sales organization assigned to it.
Customer master data will be created for each sales organization.
Documents created in SD processes (order, delivery, and billing
document) belong to a sales organization.
At least one sales organization is mandatory in the structure

A sales organization is assigned to only one company code
Sales Organization in master data maintenance
The sales organization is

required to create the
commercial data in a
customer master
Sales Organization in sales document processing
The sales organization is

required to create a sales
order
Sales organization Customizing information
Define sales organization :
Enterprise Structure > Definition > Sales and Distribution > Define,
copy, delete, check sales organization
Assign sales organization :

Enterprise Structure > Assignment > Sales and Distribution > Assign
sales organization to company code
In customizing, use the copy function to create new objects and impact
the dependent customizing tables
01-Sales organization
01-Distribution Channel 02-Distribution Channel
A distribution channel defines how sellable materials or services

reach the customer.
A distribution channel is assigned to a sales organization.
A sales organization may have more than one distribution
channel assigned to it.
A distribution channel allows customers to be treated differently
depending on the channel they are assigned to. (wholesale,
retail..).
A distribution channel can be used to :
Achieve flexible pricing
Differentiate sales statistics
At least one distribution channel is mandatory in the structure
A distribution channel can be assigned to one/or several sales organization
Distribution channel in master data maintenance
The distribution channel is required to

create the commercial data in a
customer master
Distribution channel in sales document processing
The distribution channel is

required to create a sales
order
Distribution channel Customizing information
Define Distribution channel :
Enterprise Structure > Definition > Sales and Distribution > Define,
copy, delete, check distribution channel
Assign Distribution channel :

distribution channel to sales organization
Sales division
02-Sales organization
01-Sales division 03-Sales division
A sales division is used group materials (per product line)

and services.
A sales organization can have several divisions assigned
to it, but must have at least one division.
A sales division can allow :
Restricting price agreements to a certain division
Conducting statistical analysis by division
At least one sales division is mandatory in the structure

A sales division can be assigned to one/or several sales organization
Sales division in master data maintenance
The division is required to create

the commercial data in a customer
master
Sales division in sales document processing
The division is required to

create a sales order
Sales division Customizing information
Define sales division :
Enterprise Structure > Definition > Logistics - General > Define, copy,
delete, check division
Assign sales division to sales organization :

division to sales organization
Sales area
01-Sales organization 02-Sales organization
01-Distribution Channel 02-Distribution Channel 03-Distribution Channel
01-Sales division 02-Sales division 02-Sales division 01-Sales division 03-Sales division
A sales area is unique and combines : 1 sales organization, 1 distribution

channel and 1 sales division.
Each SD document is assigned to exactly one sales area (it cannot be
changed).
A sales area can belong to only one company code.
SAP accesses various master data, according to the sales area. (customer
master data, material master data and condition master data).
A sales area is a combination of SD entities that is central to SD data

maintenance and sales documents processing
Sales area in master data maintenance
The sales area is the

combination of 3 individual
commercial entities
Sales area in sales document processing

commercial entities
Sales area Customizing information
Define the authorized sales areas :
Enterprise Structure > Assignment > Sales and Distribution > Set up
sales area
Sales office
The definition of sales offices is optional.

The sales office is used to further structure the commercial
organization below the sales area level.
A sales office can be divided into several sales groups.
A sales office has an address.
All items in a sales document belong to a sales office.
The items in a delivery or an invoice can belong to different
sales offices.
The sales office acts as a selection criterion for lists of sales
documents.
For each sales office, you can determine the printer for
output based on the sales documents in different ways.
A sales office is not:
a selection field for the delivery and billing due list.
a selection field for lists of deliveries and billing documents.
A Sales office is not mandatory in the structure. It is used to further
structure the commercial organization below the sales area
Sales office Customizing information
Define a sales office :
Enterprise Structure > Assignment > Sales and Distribution > Maintain
sales office
Assign a sales office :
sales office to sales area
A Sales office can be assigned to one or more sales areas

Sales Group
A a sales group can be assigned to one or more sales offices.

You can assign people to a sales group.
A sales group is responsible for all items in a sales document.
The items in a delivery or a billing document can belong to different
sales groups.
The sales group is a selection criterion for lists of sales documents.
For each sales group, you can determine the printer for output
differently on the basis of the sales documents.
A sales group is not:
a selection criterion for lists of deliveries or billing documents
a selection criterion for the delivery or billing due list
Sales groups can be used for reporting purposes.
A Sales group is not mandatory in the structure. It is used to further

structure the commercial organization below the sales office
Sales Group Customizing information
Define a sales group :
Enterprise Structure > Assignment > Sales and Distribution > Maintain
sales group
Assign a sales group :
sales group to sales office
A Sales group can be assigned to one or more sales offices

Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Organizational structure for logistics : overview
Production Plant BP01
Raw Materials (0004) Lean WM (0005) Standard Wh (0001) Production (0002) Finished Goods (0003)
Warehouse 200
Goods
Fixed Bin
Receipt
Shipping Regional Warehouse BP03, BP0X
/Distrib. Center BP02
Trading Goods (0010)

Plant
The plant is a logistic entity used by all the logistics modules (MM, SD, CS, PP).
The plant is uniquely assigned to a company code, and a company code may have many
plants assigned to it.
The plant can be defined for different purposes based on its role in the organization
In SD/CS : a plant can represent the location from which finished goods are stored and
distributed. A plant may also be the location from which services are rendered.
In MM : a plant represents a location where material flow is managed. Stock requirements are
managed from inbound and outbound perspectives. Material stock is consumed, planned and
purchased in the plant.
In PP : a plant represents a manufacturing facility where materials are produced.
At least one plant is mandatory in the structure for SD/CS

A plant can be assigned to one/or several sales organization but is assigned
to a single company code
Plant
To link the Sales and logistics activities :

Assign delivering plants to a combination of sales organization and distribution
channel
You can link as many plants as needed to a sales organization in order to
fulfill the many logistics needs
In the sales document, the plant is essential for checking the stock
availability and determining the shipping point.
The coordination of the sales and delivering activities is possible via the link
between the plant and the sales organization+distribution channel
Plant in master data maintenance
The plant is required to create the

plant dependent data in a material
master
Storage location
01-Plant
01-Storage location 02-Storage location
A storage location is a physical place where stock is kept within a plant.

Different storage locations can be created for stock differentiation within a
plant :
Finished goods
Raw materials)
A storage location is assigned to a plant.
At least one storage location is mandatory in the structure

A storage location is uniquely assigned to one plant
A plant can have several storage locations
Shipping point
A shipping point can be a :
Physical location : loading dock
Logical location : Group of employees dealing with specific

shipping activities
At least one shipping point is mandatory in the structure

A shipping point is assigned to a plant
Shipping point
The shipping point enables to manage the

shipping activities.
01-Plant 01-Plant
Each outbound delivery is processed at a
shipping point.
01-Shipping point 02-Shipping point Shipping points are assigned to plants.
A shipping point should have physical

01-Plant
proximity to its assigned plant.
Several shipping points can be assigned

to a single plant.
01-Shipping point 02-Shipping point
Several plants can also have a shared

shipping point.
At least one shipping point is mandatory in the structure

A shipping point is assigned to a plant
Shipping point
The shipping point is required to

create the delivery document
Mandatory entities
Mandatory entities for logistics :

Plant
Storage location
Shipping point
At least one existing value for each element in the SAP R/3
structure
Make sure you define the mandatory entities for logistics activities processing in SAP R/3
Optional entities
Optional entities for logistics :

Warehouse number (WM)
A Warehouse number is only mandatory if WM module is implemented

Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Overview
Service uses organizational elements from :

Financial accounting
Controlling
Sales
Logistics
Purchasing
Human resources
Service has an extensive usage of the elements in the different R/3 modules
Financial Accounting
Chart of accounts :
Structured list of general ledger accounts
It may be assigned to one or more company codes
Company code :
Structures the enterprise as a legally independent unit and provides a frame for
financial accounting and the respective closing operations.
Business area :
Refers to subdividing an enterprise according to internal financial accounting
criteria (product divisions or departments..).
Used to create internal balance sheets, to identify the profit and loss for areas of
responsibility.
Controlling Cost accounting
Controlling area :
The organizational unit within an enterprise for which full, self-contained cost accounting can be performed.
A controlling area may comprise one or several company codes, which may operate in different currencies.
All of the company codes in a controlling area must use the same operational chart of accounts.
All internal allocation transactions relate only to objects in the same controlling area.
Operating concern :
A part of the enterprise which has a unique segment of the sales market.
For individual segments that are classified by characteristics (article group, customer group, country, distribution
channel, for example), profit is ascertained by comparing costs and revenues. For this reason, these segments are
called profitability segments.
Several controlling areas may be assigned to one operating concern.
Profit center :
One of the internal controlling divisions in an enterprise.
Sales area
01-Sales organization 02-Sales organization
01-Distribution Channel 02-Distribution Channel 03-Distribution Channel
01-Sales division 02-Sales division 02-Sales division 01-Sales division 03-Sales division
A sales area is unique and combines : 1 sales organization, 1 distribution

channel and 1 sales division.
Each SD document is assigned to exactly one sales area (it cannot be
changed).
A sales area can belong to only one company code.
SAP accesses various master data, according to the sales area. (customer
master data, material master data and condition master data).
A sales area is a combination of SD entities that is central to SD data

maintenance and sales documents processing
Sales area in master data maintenance

commercial entities
Plant
2 kinds of plants are used for service activities :

Planning plants : Services planning and scheduling
Performing plants : Services execution
Each service order is assigned to one planning plant. However, several
performing plants can be involved.
For centralized planning : only one planning plant, several plants
perform the services.
For decentralized planning : each planning plant is also a performing
plant.
Plants in CS can be considered as planning or performing

Purchasing organization
It procures materials and services for one or more plants or company

codes.
It also negotiates the purchasing conditions.
Valuation of materials can be based on company codes or plants
Purchasing entities are required to buy goods or components for service

activities
Purchasing organization
The purchasing organization is

required to create a purchase order
Purchasing group
Key for a buyer or a group of buyers, who is/are responsible for

certain purchasing activities
Internally, the purchasing group is responsible for the
procurement of a material or a class of materials.
Externally, it is the medium through which contacts with the
vendor are maintained.
The purchasing group is required for purchase order creation

Purchasing group
The purchasing group is required to

create a purchase order
The purchasing group is required for purchase order creation

Employees
The planners or stock planners can be combined into planner groups.

The groups performing the services are defined as work centers within a
plant. The plant represents the location of these work centers.
One or more employee (people) can be assigned to each work center.
Employees can also be created via HR tables.
No extensive HR implementation needed to use employees in CS

Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Link with sales structure Client level
FI
Company code
1 1
Logistics activities Sales activities

N N
MM SD
Plant Sales organization
N N
1 N
N SD N SD
N MM N SD
Distribution channel Sales Division
Storage location Shipping point
1 N
N
SD
1 WM Sales Office
Warehouse number N Sales area
N
SD
Sales Group
N
N HR
Mandatory Entity
Sales Employee
Optional Entity
Make sure you have defined and assigned the MANDATORY entities before processing
transactions for sales and distribution in SAP
Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Glossary
English French
Glossary
English French
Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Appendix
Transaction codes
Code Description
XD01 / XD02 / XD03 Create / Modify / Display a customer master (full views)
VD01 / VD02 / VD03 Create / Modify / Display a customer master (sales views)
XD07 Change customer account group
MM01 / MM02 / MM03 Create / Modify / Display a material master
MMAM Change material type
VD51 / VD52 / VD53 Create / Modify / Display a customer material information
VD31 / VD32 / VD33 Create / Modify / Display a price record (per list)
VK11 / VK12 / VK13 Create / Modify / Display a price record (per condition type)
VA31 / VA32 / VA32 Create / Modify / Display a scheduling agreement
VA01 / VA02 / VA03 Create / Modify / Display a sales order
VV11 / VV12 / VV13 Create / Modify / Display a condition record (sales doc.)
VV21 / VV22 / VV23 Create / Modify / Display a condition record (delivery doc.)
VV31 / VV32 / VV33 Create / Modify / Display a condition record (billing doc.)
Agenda
Introduction
Summary
Glossary
Appendix
Business Case
Business Case
Assignment : Build an SD organizational structure
The ICT group is a leader in the computing sector. Its main brands are
twofolds: ICT components and DCC laptops. The group holds 2 companies
located in Belgium and in the US. Both wholesale and retail customers are
addressed from various sales representations located in Brussels, NYC and
LA.
In order to focus on a single brand in the US, 1 sales force in NYC is dedicated
to selling ICT components to wholesellers and shops whereas a second
sales force in LA sells DCC laptops to wholesellers and shops. US sales are
only generated on the domestic market.
In Belgium, a single sales force in Brussels sells both brands to domestic and
European wholesellers and retail shops whose pricing policy is very different.
In the US, the ICT components are produced and delivered from NYC
whereas the DCC laptops are assembled and delivered from LA.
In Belgium the ICT components and the DCC laptops are both delivered
from the European Distribution Center located in Antwerp to fulfill ICT logistics
requirements in Europe.
1 - Build 2 flip-charts to represent the optimized global organizational structure of

the ICT group for Belgium and the US in SAP R/3.
Business Case
Solution : Organizational structure for ICT group = BE Company
ICT BE
N N
D001 - Plant : EDC ANTWERPEN V001 - Sales V002 - Sales
org. domestic org. Europe
N
0001 - Storage 1000 - Shipping 1100 - Shipping 01 - 02 -

location point : domestic point : Europe Wholesale Retail
01 - ICT 02 - DCC
comp. laptop
Sales Office BXL
Sales force 1
8 Authorized sales areas for ICT Belgium :

V001-01-01
V001-01-02
V001-02-01
V001-02-02
V002-01-01
V002-01-02
V002-02-01
V002-02-02
Link between sales org./distrib. Channel > Plants :
V001-01 > D001
V001-02 > D001
V002-01 > D001
V002-02 > D001
Business Case
Solution : Organizational structure for ICT group = US company
ICT US
N N
D101 Plant : NYC D201 Plant : LA V003- Sales
org. US
N
0101 - 1101 - 0201 - 2101 - 01 - 02 -

Storage Shipping Storage Shipping Wholesale Retail
location point NYC location point LA
01 - ICT 02 - DCC
comp. laptop
Sales Office NYC Sales Office LA
Sales force 2 Sales force 3
4 Authorized sales areas for ICT US :

V003-01-01
V003-01-02
V003-02-01
V003-02-02
Link between sales org./distrib. Channel > Plants :
V003-01 > D101
V003-02 > D201

SAP SD Organizational Structures

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SAP Training : SD00

Organisation in Sales and Service

The objective of this training is to :

Understand the purpose and assignment of enterprise structures

An organizational structure will be defined in SAP R/3 to :

The enterprise structure for sales and service enables to

Organizational elements represent the legal and

Company Intercompany Processing

Organizational elements are defined at several levels in SAP R/3

Mandatory entities for sales (at least one existing value in

Optional entities for sales :

At least one company code is mandatory in the structure

The company code is

Define company code :

Customizing activities regarding financial entities are executed by FI consultants.

A sales organization may :

At least one sales organization is mandatory in the structure

The sales organization is

The sales organization is

Assign sales organization :

01-Distribution Channel 02-Distribution Channel

A distribution channel defines how sellable materials or services

The distribution channel is required to

The distribution channel is

Assign Distribution channel :

01-Sales division 03-Sales division

A sales division is used group materials (per product line)

At least one sales division is mandatory in the structure

The division is required to create

The division is required to

Assign sales division to sales organization :

01-Sales organization 02-Sales organization

01-Distribution Channel 02-Distribution Channel 03-Distribution Channel

A sales area is unique and combines : 1 sales organization, 1 distribution

A sales area is a combination of SD entities that is central to SD data

The sales area is the

The sales area is the

The definition of sales offices is optional.

A Sales office can be assigned to one or more sales areas

A a sales group can be assigned to one or more sales offices.

A Sales group is not mandatory in the structure. It is used to further

A Sales group can be assigned to one or more sales offices

Production Plant BP01

Trading Goods (0010)

At least one plant is mandatory in the structure for SD/CS

To link the Sales and logistics activities :

The plant is required to create the

01-Storage location 02-Storage location

A storage location is a physical place where stock is kept within a plant.

At least one storage location is mandatory in the structure

A shipping point can be a :

Physical location : loading dock

Logical location : Group of employees dealing with specific

At least one shipping point is mandatory in the structure

The shipping point enables to manage the

01-Shipping point 02-Shipping point Shipping points are assigned to plants.

A shipping point should have physical

Several shipping points can be assigned

Several plants can also have a shared

At least one shipping point is mandatory in the structure

The shipping point is required to

Mandatory entities for logistics :