SAP Enterprise Structure Concept and Configuration Guide: A Case Study

By Ahmad Rizki

SAP enterprise structure is organizational structure that represents an enterprise in SAP ERP system. It consists of some organizational units which, for legal reasons or for other specific business-related reasons, are grouped together. Organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle specific business functions.

Organizational units may be assigned to a single module (such as a sales organization is assigned to Sales and Distribution (SD) module, or to several modules (such as a plant is assigned to Materials Management (MM) and Production Planning (PP) module). SAP ERP system can represent a complex enterprise structure.

Enterprise structure design is a fundamental process in a SAP implementation project. The design is mainly determined by the business scenarios performed in an enterprise. Once the design is determined, it will affect many things such as how to perform a transaction and generate reports on SAP system. Although it’s possible, it requires great effort to change the enterprise structure. So , we must ensure that the enterprise structure designed in the SAP implementation project can accommodate all business scenarios and enterprise’s requirements for current and future situation.

The SAP Enterprise Structure is a fundamental setting and needs a comprehensive understanding of the business processes and their integration. We have to work with other departments and SAP modules, such as Accounting department (FI), and Sales department (SD).

This book explains in details about the basic concept of SAP Enterprise Structure (MM and related modules such as FI, Logistics, and SD) and step by step how to configure it in SAP ERP system. To make it more understandable, it is supplied with a case study and the screen shots of each configuration step.

It's written in a simple-to-understand way, so you can learn it easily. You don't need to have extensive SAP configuration skill and experience to be able to configure the SAP Enterprise Structure.

• Language: English
• Publisher: Ahmad Rizki
• Release date: Aug 12, 2010
• ISBN: 9781452371221

Ahmad Rizki

Ahmad Rizki is currently an ERP Business Analyst Manager and also a Senior SAP Specialist at a telecommunication company in Indonesia. He had worked at various companies from various industries such as Oil & Gas Services, Geothermal Energy, Financial Services, and Telecommunication. The main functions that he experienced are Inventory Management, Procurement, Internal Audit, Sales & Distribution, and IT.He also has some full-cycle SAP implementation projects experience in some SAP modules such as Material Management (MM), Sales & Distribution, and Project System (PS). He has deep understanding about the integration between MM, SD, PS, and other SAP modules such as FICO, Plant Maintenance (PM), etc.With his experience and his educational background as an Industrial Engineer, he has a clear vision about various business processes and how to use the best-practice of them to support company’s strategic and operational activities to achieve its target.He is the ERPCX Country Ambassador for Indonesia, a global provider of SAP knowledge and resources.He runs an SAP-related blog at www.SAPstudyMaterials.com where he writes several articles about various SAP concepts, configuration guide, etc.

Book preview

SAP Enterprise Structure

Concept and Configuration Guide

- A Case Study -

(MM and related Modules such as FI, LE, SD)

By:

Ahmad Rizki

Smashwords Edition

©Ahmad Rizki, www.SAPstudyMaterials.com 2011. All rights reserved

All SAP product names at this article are trademarks of SAP AG.

I am not affiliated with nor endorsed by SAP AG.

Table of Contents

Chapter 1: Case Study Business Scenario

Chapter 2: SAP Enterprise Structure

Enterprise Structure in Financial Accounting

Enterprise Structure concept in Financial Accounting

Define Company

Define Company Code

Assign Company Code to Company

Define Business Area

Enterprise Structure in Logistics – General

Enterprise Structure concept in Logistics

Define Plant

Define Valuation Level

Define Division

Assign Plant to Company Code

Assign Business Area to Plant/Valuation Area and Division

Enterprise Structure in Sales and Distribution (SD)

Enterprise Structure concept in Sales and Distribution

Define Sales Organizations

Define Distribution Channel

Assign Sales Organization to Company Code

Assign Distribution Channel to Sales Organization

Assign Division to Sales Organization

Setup Sales Area

Assign Sales Organization – Distribution Channel - Plant

Business Area Account Assignment

Enterprise Structure in Material Management (MM)

Enterprise Structure concept in Material Management

Maintain Storage Location

Maintain Purchasing Organization

Assign Purchasing Organization to Company Code

Assign Purchasing Organization to Plant

Assign Standard Purchasing Organization to Plant

Assign Purchasing Organization to Reference Purchasing Organization

Chapter 1: Case Study Business Scenario

ABCD is a telecommunication company. It sells intangible telecommunication services, such as voices, SMS, and data usage to the end-customers. The services can be consumed by end-customers through the handset and starter pack (RUIM/sim card) inserted in it. The ABCD company has two branches: west region (which also the Head Office/HO) and east region.

EFGH is a subsidiary company of ABCD that produces handset. The EFGH company sells its handset only to the HO (west region) of ABCD company. Then the west region of ABCD will distribute the handset to the east region and its customers.

ABCD company sells the starter pack and handset to the customers through two main channels: the wholesale (dealer) channel and retail sale (the end-customers) channel.

The handset is bought from overseas vendor by EFGH company (the ABCD company has no imported license, so it can’t purchase the handset directly from the vendor) but needs to be packaged by local vendor. In the packaging process the handset is bundled with the starter pack and other sales promotion materials such as flyer, etc.

EFGH company buys the starter pack from vendor to be bundled with the handset. ABCD company buys the starter pack from vendor to be sold to the customers, so it can be used in other

Reviews for SAP Enterprise Structure Concept and Configuration Guide

[Abdul Manan · Rating: 5 out of 5 stars]

it is a very nice book.i love this book.i want to read more books of ahmad rizki.