Definition &Assignment
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Overview of Organizational Structure in SAP SD (Sales and Distribution)
1. Definition
The organizational structure in SAP SD defines how a company is structured in terms of its operational and reporting needs. It is a hierarchical structure that represents the legal and functional arrangement of a company. The key elements include company code, sales organization, distribution channel, division, sales office, and sales group.
2. Purpose
The purpose of the organizational structure is to represent the various business units and reporting requirements within an SAP system. It ensures that sales processes align with the organizational hierarchy, supports business processes like order management, and provides a basis for reporting and analysis. Proper structuring enables efficient management of sales transactions, customer relations, and financials.
3. Process Flow
- Creation of Master Data: Organizational units such as company code, sales organization, and distribution channel are defined in SAP.
- Assignment of Organizational Units: Assigning sales organizations to company codes, distribution channels to sales organizations, and divisions to products.
- Integration: The organizational structure is integrated with other SAP modules such as MM (Materials Management) and FI (Financial Accounting) for seamless business operations.
- Transaction Processing: Sales orders are processed according to the organizational structure, with each unit responsible for its specific operations.
4. Tables
- T001: Company Codes
- TVKO: Sales Organizations
- TVKOV: Organization Units: Texts
- TVTWT: Distribution Channels
- TVGRT: Sales Groups
- TSPAT: Organizational Unit Names
- TVBVK: Sales Office/Organizational Unit Assignment
5. Configuration
- Define Company Code: This is the smallest organizational unit for which you can draw financial statements.
- Define Sales Organization: A sales organization is responsible for distributing goods and services and negotiating sales conditions.
- Define Distribution Channel: It represents the channel through which products or services reach customers, e.g., wholesale or retail.
- Define Division: Represents a product line or a range of products.
- Assign Organizational Units: Linking sales organizations to company codes, and distribution channels and divisions to sales organizations.
Configuration Steps:
Financial Accounting:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Financial Accounting -> Define company
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Financial Accounting -> Define Credit Control Area
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company Code
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Controlling -> Maintain Controlling Area
- Controlling
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Controlling -> Maintain Controlling Area
Logistics – General:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Logistics – General -> Copy, delete, check plant
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Logistics – General -> Define, copy, delete, check division
Sales and Distribution:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check sales organization
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check distribution channel
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check distribution channel
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Sales and Distribution -> Maintain Sales Group
- Materials Management
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Materials Management -> Maintain storage location
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Materials Management -> Maintain purchasing organization
Logistics Execution:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Logistics Execution -> Copy, Delete, and Check Shipping Point
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Logistics Execution -> Copy, Delete, and Check Shipping Point
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Logistics Execution -> Maintain Loading Point
- SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Logistics Execution -> Maintain Transportation Planning Point
- Assignment:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign company code to company
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign company code to credit control area
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Controlling -> Assign company code to controlling area
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Logistics – General -> Assign plant to company code
- Sales and Distribution:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales organization to company code
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign distribution channel to sales organization
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign distribution channel to sales organization
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Set up sales area
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales office to sales area
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales group to sales office
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales Organization – Distribution Channel – Plant
Materials Management:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Materials Management -> Assign purchasing organization to company code
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Materials Management -> Assign purchasing organization to company code
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Materials Management -> Assign standard purchasing organization to plant
Logistics Execution:
- SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Logistics Execution -> Assign shipping point to plant
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6. Integration
The organizational structure in SAP SD integrates closely with other modules such as:
- MM (Materials Management): Ensures that sales processes are aligned with inventory management.
- FI (Financial Accounting): Supports the financial impact of sales processes, ensuring proper billing and revenue recognition.
- PP (Production Planning): Links sales demands with production planning processes.
- CO (Controlling): Assists in cost management and profitability analysis based on the organizational hierarchy.
7. Testing
Testing the SAP SD organizational structure involves:
- Unit Testing: Verifying that individual components (e.g., sales organization) function correctly.
- Integration Testing: Ensuring that the organizational structure integrates seamlessly with other modules like MM, FI, and CO.
- User Acceptance Testing (UAT): End-users validate that the configuration meets business requirements.
Test Data Example:
- Company Code: 1000 (ABC Ltd.)
- Sales Organization: 1000 (Domestic Sales)
- Distribution Channel: 10 (Direct Sales)
- Division: 01 (Electronics)