Enterprise Structure SAP SD

 Enterprise structure SAP SD is an organizational structure that is mapped into SAP Ex. – Corporate office, Branch office, sales head office, manufacturing plant, etc Organizational Units.

 

• Company code: – Company code is an organizational unit that is responsible for all the external financial transactions which happen in the company. Example: – Balance sheet and profit & loss statement. Every company has to prepare a Balance sheet and profit & loss statement on the name of the company code. It is the organizational unit, which is registered under Company‟s act 1956(INDIA). Company code is a physical entity.

A company code is 4 digit code.

 

• Sales Organization: – It is an organizational unit that is responsible for all sales & services that happen in the Company. Or It is an organizational unit where strategic decisions related to sales will be taken. Or It is an organization unit where we find director of sales and VP sales. SD consultant is responsible for defining a sales organization in SAP. 

The sales organization is of 4 digit code.

 

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• Distribution Channel: – The Channel of selling the goods to end customers or the way of distributing goods to end customers Distribution channel is a logical entity. The length of the distribution channel is 2 digits..

 

• Division: – Division is a range of products or product lines. Grouping of products that are similar in nature. A division is 2 digit codes.

 

Sales area: – A sales area is a combination of sales organization, Distributor channel, and Division.

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• Sales office: – It is a physical location where a group of people work together to perform sales. (We also call it a branch office).

 The sales office is a 4-digit code. It is a physical location. 

The difference between a sales office and a sales organization is, in a sales organization we will take strategic decisions related to sales but in a sales office we can’t take strategic decisions. In a sales organization, we will find a vice president of sales and direct sales but in a sales office we will find a sales manager, a zonal manager

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• Sales Group: – Group of people within a sales office working for different activities. Hierarchy of employees in the sales office. There is no relation between the two groups. If they don’t have a group then they follow a hierarchy. 

Sales group is a 3 digits code. 

 

• Plant: – “It is a physical location where we do the process of manufacturing finished goods.” A plant is 4 digits code. It is a physical location.

 

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The raw material is a product that is used to manufacture finished goods and loses its identity in the process. Whenever the production department plans to manufacture a particular X product they will send a request to the store department. The store department will cross-check the raw materials. If all raw materials are available then they issue raw materials to the production department. The dispatch department 1st they plan for delivery and then they do the picking activity and then packing. After packing they send the goods to the shipping point.

 

Shipping point: -It is a physical location where we do the process of loading goods into trucks, Rail for dispatching them to customers. 

Storage location: – It is a physical location where we store the goods within the plant.

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Author:-

Saurabh Bapat

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