SAP SALES & DISTRIBUTION: Enterprise Structure

Enterprise Structure:

Enterprise structure specifies the structure of the company or the structure of the organisation.

Eg:- Head office, Branch office, plant etc.

Whenever we are Implementing SAP to any client first we have to gather the details of the Enterprise Structure from the core user.

1) Company Code:- It is a legal entity which is responsible for all external financial transactions which happens in the company. Eg: Balance sheet, Profit and Loss statements.

Every year we prepare Balance sheet on the name of company code.
It is a legal entity which is Registered under company's act 1956.
FI consultant is responsible to define company code.
The length of company code is 4 digits.
The code can be Numeric, Alpha Numeric or Characters.
In our project we have one company code that is ALKEM LABORATORIES LTD located in Mumbai.
The below scenarios client will have multiple company code.

a) Group of Companies.

Eg: TATA Group, Reliance Group.

b) Having operation in Multiple Countries.

2) Sales Organization:

It is an organizational unit in sales which is responsible for all sales and service happen in the company.
It is an organizational unit where strategic decision related to sales will be taken.
It is an organizational unit where you find Directors and Vice President sales ( Head of the Department).
SD Consultant is responsible to define sales organisation in SAP.
The length of sales organisation is 4 digits.

The below Scenarios a client will have multiple sales organisations.

If client is having multiple company codes they will have multiple sales organisations.
Bifurcation of sales responsibilities region wise.
Domestic and Exports.
In our Project we have two sales organizations. i.e.

A). ALKEM DOMESTIC (Z100) B). ALKEM EXPORTS (Z200)

3) Distribution Channel: The way of distributing the goods to end customers or the way of selling the goods to End customers.

SD Consultant is responsible to define the distribution channel.
The length of distribution channel is 2 digit.
In our project we have 4 distribution channels.

a) Dealers - Z1

b) Distributors - Z2

c) Institutions - Z3

d) Direct - Z4

The combination of sales organisation and distribution channel is called as sales line.
We have 5 sales lines in our project.

4) Division: A Division is a product line or Range of Products.

A Division is grouping of multiple products which are similar in nature.
SD Consultant is responsible to define Division.
The Length of Division 2 digit.
In our project we have 6 Divisions.

Gynecology - Z1
Pediatric - Z2
Insulin - Z3
Antibiotic - Z4
Cardiology - Z5
Orthopedic - Z6

The combination of sales organisation, distribution channel and division is called as Sales Area.
Sales Area plays a vital role in SD. Whatever we do in sales it should be routed through a particular Sales Area.
In our project we have 30 Sales Areas.
For Z200 Exports sales organisation only Z4 distribution channel with all 6 divisions(Z1, Z2, Z3, Z4, Z5, Z6)

5) Sales Office: It is a physical location where group of people work together to perform sales. We can also call it as Branch office.

SD consultant is responsible to define sales office.
The length of sales office is 4 digits.
In our project we have 29 sales offices. i.e., each state we have one sales office. But for practice purpose we define only one sales office. ( Which is Bangalore Sales Office Z100).

6) Sales Group: Group of people with in a sales office working for different activities.

· SD Consultant is responsible to define sales group.

· The length of sales group is 3 digits.

·         In our project we have 2 sales groups.

   1. Insulin & Antibiotic.
   2. Others.

7) Plant: It is a Physical location where we do the process of manufacturing finished Goods.

· MM Consultant is responsible to define plant.

· The length of plant is 4 digits.

Finished Goods -- The goods ready to sell.

8) Depot: A Depot is a physical location where we store the finished goods for easy distributing the goods to Customers. “Which is owned by company.”

Carry and Forward: C&F is a physical location where we store the finished goods for easy distributing the goods to customers but its own by a ‘third party person.’

In SAP Plant, Depot and C&F will defined as Plant.
MM Consultant is responsible to define plant, depot and Carry & Forward.

9) Storage Location: It is a physical location where we store the goods with in a plant.

· MM Consultant is responsible to define storage location.

The Length of storage location is 4 digits.

10) Shipping Point: It is a physical location where we do the process of Loading the goods for dispatching it to customers.

The length of shipping point is 4 digits.
In our project client is having 2 manufacturing Plants and 29 depots.
1. Bangalore Plant.

2. Chennai Plant.

In our project each plant we have 5 storage locations.

Raw Material Z101
Semi-Finished Goods Z102
Finished Goods 1 Z103
Finished Goods 2 Z104
Return Goods. Z105

In our project each plant we have three shipping points.

Manual Shipping Point. Z101
Automatic Shipping Point. Z102
Immediate Shipping Point. Z103

DEFINING OF ENTERPRISE STRUCTURE:

1. To Define Company code in SAP:

FI Consultant is responsible to define company code.
The length of company code is 4 digits.
In our project we have one company code.

i.e. Z100 ------- ALKEM LABORATORIES

Path: SPRO → Enterprise Structure → Definition → Financial Accounting → Edit, copy, delete, check company code → click on IMG activity (clock symbol).

→ Double click on Edit company code data.

→ Select Standard 1000 and click on copy.

→ Enter Unique Company Code and Maintain Details.

→After Entering Details Press Enter. Then Main Name and Address of Company.

→After Clicking on Continue, Save it.

→ System will ask for Request number if you are creating for the first time.
→ Click on create and give description, then click on continue. System will generate request number automatically, Which we use for transportation.

2. Define Sales Organisation:

SD Consultant is responsible to define sales organisation.
The length of sales organisation is 4 digits.
In our project we have two sales organisations.

Path: SPRO → Enterprise Structure → Definition → Sales & Distribution → Define copy, delete, check sales organisation → click on IMG activity

→ Double click on define Sales Organisation.

→ Select Standard 1000 and click on copy.

→Enter Details and Press Enter.

→ Maintain Name and Address then click on Continue.

→System will show following message click on Yes.

→ One sales organisation created, copy Z100 and do same for Z200 sales organisation.

→ Two Sales Organisation created.

3. Define Distribution Channel:

SD Consultant is responsible to define distribution channel.
The length of distribution channel is 2 digits.
In our project we have 4 distribution channels.

1. Dealers -- Z1

2. Distributors -- Z2

3. Institutions -- Z3

4. Direct -- Z4

Path: SPRO → Enterprise Structure → Definition → Sales & Distribution → Define, Copy, Delete, Check Sales distribution channel → click on IMG Activity.→Double click on define distribution channel.

→ Click on New Entries and Enter below details.

→ After Entering save it.

4. Define Division:

SD Consultant is responsible to define division.
The length of division is two digits.
In our project we have 6 divisions.

1. Z1 – Gynecology.

2. Z2 – Pediatric.

3. Z3 – Insulin.

4. Z4 – Antibiotic.

5. Z5 – Cardiology.

6. Z6 – Orthopedic.

Path: SPRO→Enterprise Structure→Definition→Logistics General→Define, Copy, Delete, Check Division→Double click on define Division.

→ Click on New Entries and Maintain as below.

→ After Entering save it.

5. Maintain Sales Office:

SD Consultant is responsible to define sales office.
The length of sales office is 4 digits.
In our project we have 29 states but we create only one sales office.

Path: SPRO→Enterprise Structure→Definition→Sales & Distribution→Maintain Sales office.

→ Click on New Entries and Enter as below.

→ Click on Address and Maintain Address.

→ After Entering click on continue and finally Save it.

6. Maintain Sales Group:

SD Consultant is responsible to maintain sales group.
The length of Sales group is 3 digits.
In our project we create two sales groups.

Path: SPRO→Enterprise Structure→Definition→Sales & Distribution→Maintain Sales office.

→ Click on New Entries and Enter details as below.

→ Finally Save it.

7. Define Plant:

MM Consultant is responsible to define plant.
The length of plant is 4 digits.
In our project we create two plants.

Path: SPRO→Enterprise Structure→Definition→Logistics General→Define, Copy, Delete, Check plant→Double click on define plant.

→ Select the standard 1000 and click on copy.

→ Enter details and press ENTER. Maintain details as below.

→ Save it. Do same for Z200 plant.

→ Save it finally.

8. Maintain Storage Location:

MM Consultant is responsible to maintain Storage Location.
The length of storage location is 4 digits.
In our project for each plant we create 5 storage locations.

Path: SPRO→Enterprise Structure→ Definition→ Material Management→Maintain Storage Location.

For Plant Z100

1. Z101 – Raw Material

2. Z102 – Semi-Finished Goods.

3. Z103 – Finished Goods 1.

4. Z104 – Finished Goods 2.

5. Z105 – Return Goods.

For Plant Z200

6. Z201 – Raw Material.

7. Z202 – Semi-Finished Goods.

8. Z203 – Finished Goods 1.

9. Z204 – Finished Goods 2.

10. Z205 – Return Goods.

9. Define Shipping Point:

· SD Consultant is responsible to Define Shipping Point.

· The length of shipping point is 4 Digits.

· In our project we create 3 points for each plant.

Path: SPRO→Enterprise Structure→Definition→Logistics Execution→Define, Copy, Delete, Check Shipping Point→Double click on define shipping point.

· Select the standard and rename it as.

1. Z101 – Manual Shipping Point.

2. Z102 – Automatic Shipping Point.

3. Z103 – Immediate Shipping Point.

4. Z201 – Manual Shipping Point.

5. Z202 – Automatic Shipping Point.

6. Z203 – Immediate Shipping Point.

ASSIGNMENT OF ENTERPRISE STRUCTURE:

1. Assign Sales Organisation to Company Code:

Path: SPRO→Enterprise Structure→ Assignment→Sales & Distribution→Assign Sales Organisation to Company Code.

The relationship between company code and sales organisation is one to many. I.e. ONE Company code to MANY Sales Organisations.
But one sales organisation should be assign to only one company code.
In SD Assignments only company code and sales organisation is one to many remaining all assignments are many to many.

3. Assign Division to Sales Organisation:

The relationship between sales organisation and division is many to many.
One sales organisation can have many division and one division can be assigned to many sales org.