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Every organization's Sales is structured in a certain way. This structure needs to be represented in SAP based on pre-defined
organizational elements and combine them in a pre-defined way. This method of representing all the different organizationa
elements of the company in a structured way is called Enterprise Structure. Organizational elements or Org Units for short are a
system representation of an actual company organizational unit. For example, an org unit in real life could be a particular produc
division , or a Sales Office in Seattle, or a manufacturing plant in Boston or a warehouse in Alabama. The following picture shows
how an enterprise structure is created in SAP.

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Instead of discussing the text book definitions of these organizational units, let's take a company in real life and discuss the same
However, please do note the cardinality. For example, a company can be linked to multiple company codes as shown in the
beginning of the picture above. Let's take the example of General Electric Healthcare ( or GE Medicals ) and discuss the enterprise
structure in detail. We have taken GE just as an example, and this enterprise structure in no way represents GE's internal structure
In fact, GE Healthcare does not even use SAP as its ERP.

Before discussing the same, let's look at another pictorial representation of the same picture as above - but with GE's org units.
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GE Medicals is the name of the company. This company has presence across the world. And when GE
Company Healthcare declares profits in the US, it is not just including the US company but the entire world. In SAP parlance,
GE Medicals is a Company.
GE Medicals in the US will be run through a legal entity. A company code is an entity that has to report its
Company
financials to the government on a timely basis. For example an Incorporated entity can be called a company code.
Code
In this case, GE Medicals in the US is being called as a legal entity.
Since the company has presence across the US, there will be sales organizations across the united states
Sales
responsible for selling goods. For example, the Western division is responsible for selling goods in the Western
Organization
states. The same organization is also responsible for handling returns, credits, availability of materials etc.
Just as the name speaks, a distribution channel is the sales channel through which products are distributed. In
Distribution
this case, the medical equipment could be sold through the direct channel or through an agency. Each of them will
Channel
be represented as a distribution channel. A more common example could be Retail or Wholesale.
Division is purely related to the product/service we are selling. Its a grouping of our products. For example all
Division
different types of X-Ray machines would fall under the X-Ray division.
The western division of the company might be having multiple sales offices in california. For example there could
Sales Office
be one in the bay area and another in Los Angeles
Each sales office contains multiple sales groups who have a fixed set of responsibilities. It could be based on the
products that they sell or the type of sales that they perform or the role they play in the actual sale. For example, a
Sales Group
sales group could be responsible for selling consumables used in the X-Ray while the field-apps will be
responsible for selling the software used in the machines.
A plant is where goods are manufactured. Sometimes, you might not even manufacture anything - Just trade
Plant goods. Still you would need a plant. So a plant could be a physical or virtual place where goods are manufactured
or stored at a high level. For example, there could be a plant in New Jersey.
Storage Each plant could be associated with multiple storage locations - A place where goods are stored before being
Location sold. For example, the new jersey plant could have storage locations in Edison and Iselin.
A warehouse is an extension of the storage location. While a storage location represents a location where goods
are stored, a warehouse goes much further and describes how the goods are sold, the topography of the storage,
Warehouse
storage conditions etc. Goods can still be sold without using Warehouse Management, but a sales cannot happen
without a storage location.
A combination of the sales organization, distribution channel and division is called the sales area.
Sales Office
Sales Organization + Distribution Channel + Division = Sales Area

Configuration

The configuration for the enterprise structure is very simple. The Menu path is [ SPRO -> IMG -> Enterprise Structure ]

Definition:
The first step before doing the configuration is to assess the requirement as to how the company is organized and how best it can
be represented in SAP. Each company is run in a different way. Since SAP's enterprise structure is rigid, you might have to try
different things to fit their organization's model into SAP's org structure. After you have fully understood the organizational units in
the company, start by defining those in SAP. The following picture shows the path of the enterprise structure definition in IMG. While
the Company and company codes are defined by FICO consultants, the ones highlighted in red below are absolutely necessary for
the functioning of the SAP Sales & Distribution Module.
In normal practice, organization units are normally copied from 0001 . While creating a new organizational unit is easy, there are
many associated links in the background that are normally not easy to understand. So it's always best to copy from 0001. Let's see
an example of how to create a new sales organization.

Click on Define, copy, delete, check Sales Organization under the Sales and Distribution section. Choose the option highlighted
below.

Enter the copy button and choose the "From" and "To" sales organizations.

Enter 0001 as the source and target for example is WEST. Thats it and you are done.

Organizational units can be defined in a similar way for the rest of them.
Assignment :
After defining the org elements, we have to assign them to each other to make a meaningful representation of the company's
organizational units. The menu path is [ SPRO -> IMG -> Enterprise Structure -> Assignment ]. Let's set up a sales area by
assigning a distribution channel and division to the sales organization, just as an example. Select "Set up Sales Area". However, if
you are trying to create a sales area with the combination of WEST sales organization that you just created along with a distribution
channel of 01 and a division of 01, you will see an error as shown below. The reason being that when WEST sales organization was
copied with reference to the sales organization 0001, the assignments were also copied. This is just one of the default assignment -
there are many more. So to be on the safer side, its better to copy it and delete all the necessary assignments rather that start from
scratch. Otherwise, this is how assignments are created. Assignments can be made similarly based on our first illustration to all
other organizational units based on your requirements.

Questions & Comments Welcome

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Comments (5) Add New Search

Siva - You can download it from SAP Support Website | 183.83.28.xxx | 2010-10-18 18:30:24

If you have the S id , you can download it from the SAP Support website.

Reply Quote 0 0

Youness - SAP Gui for Mac | 62.72.120.xxx | 2010-10-18 12:55:17

Hi Siva,
Where can I find the SAP Gui for Mac Folder ?
The tutorial seems to be easy but you don't purpose to download the folder.
Many thanks
Regards

Reply Quote 0 0

Anonymous | 91.151.76.xxx | 2010-10-06 07:24:14

Many thanks Siva

Great Job

Reply Quote 0 0

Siva - Very simple | 183.83.28.xxx | 2010-10-05 18:03:57

I believe you are looking for instructions on how to install SAP GUI on mac. Visit http://www.magnatraining.com/sap/sap-tutorials
/sap-general/sap-gui-mac to learn more.

Reply Quote 0 0

Youness | 91.151.76.xxx | 2010-09-30 13:25:27

Hi,
When I saw your screenshots, three little bubbles catch my eyes...indeed, it seems that you're using SAP on MAC OSx...or
maybe this is just an Windows customization ???
If you're using SAP on Mac, I would like to know how can I install SAP on my Mac ?
Many thanks

Reply Quote 0 0
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