Definition & Assignment Presntation

• 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

  1. Creation of Master Data: Organizational units such as company code, sales organization, and distribution channel are defined in SAP.
  2. Assignment of Organizational Units: Assigning sales organizations to company codes, distribution channels to sales organizations, and divisions to products.
  3. Integration: The organizational structure is integrated with other SAP modules such as MM (Materials Management) and FI (Financial Accounting) for seamless business operations.
  4. 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

   

• Configuration Steps:

Financial Accounting:

• Enterprise Structure -> Definition -> Financial Accounting ->
  • Define company  –  Copy and change the details from 1710 to XXXX company
  •  Define Credit Control Area – Use standard  — 1000
  • Edit, Copy, Delete, Check Company Code  —  double click on > Copy, delete, check company code > copy from 1710 > change the company(XXXX) name description

Controlling

• Maintain Controlling Area — Double on > Maintain Controlling Area > Use Standard 1000

Logistics – General:

• Enterprise Structure ->
  • Step 1: Define Plant > Select 1710 and copy then change the plant code from 1710 to XXXX , change the description
    • Go to OPPQ and click on copy enter from plant 1710 and to plant XXXX
• Benefit: All the unnecessary data would not be copied from 1710 then with OPPQ , you will be having plant parameters

(OR)

• Step 2: Definition -> Logistics – General -> Copy, delete, check plant > double click on Copy, delete, check plant > Copy from 1710
  • All the plant parameters will be copied.

• Define, copy, delete, check division > Go to new entries and create the division

Sales and Distribution:

• Enterprise Structure -> Definition -> Sales and Distribution
  • Define, copy, delete, check sales organization  -> Double click on Copy, delete, check sales organization > click on copy > enter from sales Org 1710 and to Sales Org XXXX
    • Double click on Define Sales Organization > change the description of the S.Org
  •  Define, copy, delete, check distribution channel > Double click on Define distribution channel and new entries
  • Maintain Sales Office > Go to new entries
  • Maintain Sales Group

Materials Management

• Maintain storage location > enter plant > Go to new entries and enter storage loacation
• Maintain purchasing organization > Copy from 1710

Logistics Execution:

• Define Shipping Point > Select 1710 and copy , rename with your code XXXX
  • Maintain Loading Point > Enter the shipping point > New entries and create loading points
• Maintain Transportation Planning Point > Go to new entries and enter T. Pln Point XXXX and Company code XXXX

Assignment:

•  Financial Accounting ->
  • Assign company code to company
  • Assign company code to credit control area > ensure 1000 will be assigned
• Controlling
  • Assign company code to controlling area
•   Logistics – General ->
  • Assign plant to company code > New entries and enter the data

Sales and Distribution:

•  Sales and Distribution ->
  • Assign sales organization to company code – Assign S.Org and Company Code
  • Assign distribution channel to sales organization > New entries assign S.Org and D.Ch
  • Assign division to sales organization > New entries assign S.Org and Div
  • Set up sales area >  Go to new entries and enter the data
  • Assign sales office to sales area >  Go to new entries and enter the data
  • Assign sales group to sales office >  Go to new entries and enter the data
  • Distribution Channel – Plant >  Go to new entries and enter the data

Materials Management:

• Assign purchasing organization to company code > Go to Position P.Org and enter your company code XXXX
• Assign purchasing organization to company code >  Go to new entries and enter the data
• Assign standard purchasing organization to plant > Go to Position enter Plant and Assign P.Org

Logistics Execution:

• Assign shipping point to plant > Crl F and enter your plant , Click on the plant , Double click on the plant and assign the Shipping point

• 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)