SAP SD Enterprise Structure

Enterprise structure or Organizational structure in SAP is a structure of

SAP organizational units that reflects the structure of the business in the
real world. There are various SAP organizational units that can be mapped
to business structure based on the real world business requirements such
as: Client, Company Code, Plant, Storage Location, Sales Organization,
Distribution Channel, Division, Sales Office, Sales Group, Sales Person,
Shipping Point, Loading Point, etc.

We must set the enterprise structure correctly in the first place. The change
of it usually requires a great effort and very time consuming. To set it up
correctly we must have a comprehensive knowledge about the business
processes and how to map it to SAP configuration.

A specific organizational unit is defined by a specific function or module in

SAP. Company code is defined by FI module. Plant is defined by Logistics
function. Storage Location and Purchasing Organization are defined by MM
module.
In SD module we have to define Sales Organization, Distribution Channel,
and Division. We have an option whether to use Sales Office, Sales Group,
and Sales Person or not.
Sales Organization

Sales Organization is an organizational unit that responsible to sell and

distribute products and negotiate the term of sales to the customers. Sales
Organization is the highest organizational unit in SD module. We should
have only one Sales Organization in one company code. We must have a
very good reason in term of business process to create more than one
Sales Organizations in one company code. For example, we want to divide
the market into regions where each region is responsible for its own
product liability and customer rights-of-recourse (right to recover a bad
debt).
A sales organization must be assigned exactly to one company code.
A sales organization is assigned to one or more plants.
Distribution Channel

Distribution Channel is an organizational unit that represents the channel

through which the materials or services reach the customer, such as
wholesale channel, direct sale channel, retail channel, etc.
A distribution channel can be assigned to one or more sales organizations.
Division

Division is a way to group materials or services. A wide range of materials

or services can be divided into divisions. A material or service is always
assigned to just one division.
In SAP SD, the use of divisions allows us organize our sales structure
around groups of similar products or product lines. We can define a
division-specific sales structure. Within a division, we can also carry out
statistical analyses or devise our own marketing strategies.
Sales Area

A sales area is a combination of sales organization, distribution channel

and division. Sales documents, delivery documents, and billing documents
are always assigned to a sales area. Every sales process always takes in a
specific sales area.

SAP SD enterprise structure and master data

Master data is data records that remains in the database for a long period
of time. In SAP SD module, master data includes materials, customers,
conditions (pricing), etc.
Master data is created centrally and can be used in all applications. A
customer is master data that can be used in customer requests, orders,
deliveries, invoices, and payments.

Master data also has an organizational aspect as it is assigned to

organizational units.

Material master data

Division is a field in the material master data (it can be input/edited on

“Basic Data 1” view by MM01/MM02 t-code). That’s why a material is
always assigned to just one division.
A material can be sold through one or more distribution channels in one or
more sales organization. To allow it, we have to maintain the material
master data for each combination of sales organization and distribution
channel.
We can set different data of a material for each combination sales
organization and distribution channel, such as: “minimal order quantity” and
“minimal delivery quantity” data. By doing so, for example, a material must
be ordered by customer minimal 1000 PC for wholesale channel and 10 PC
for retail channel (assumed we only have one sales organization).

Customer master data

A customer can buy one or more divisions (group of products or services)

from one or more distribution channels in one or more sales organizations.
To allow it, we have to maintain the customer master data for each
combination of sales organization, distribution channel, and division (which
is a sales area).
We can set different data of a customer for each sales area, such as:
“delivering plant”, “shipping conditions”, and “delivery priority”. By doing so,
for example, we can set that if a customer orders a material or service (with
includes in a division) through a wholesale channel in a sales organization,
we deliver it with “high” delivery priority. But, if that customer orders the
same material or service (with includes in a division) through a retail
channel in same sales organization, we deliver it with “standard” delivery
priority.

Conditions (pricing) master data

A company usually sells a material or service at different price conditions

for different channel distributions. For example, it gives more discounts for
same material or service that sold through wholesale channel than through
retail channel (it’s because the minimal order quantity for wholesale
channel is usually much bigger than retail channel).
In SAP SD, we can set different materials or services pricing conditions that
sold to the same customer for each combination of distribution channel and
sales organization.
The rule of thumb in determining SAP enterprise structure is try to create
as simple as it can. We must have a very good reason in term of business
process to create any additional organizational units of SAP enterprise
structure.
SAP SD Enterprise Structure
Enterprise Structure
Related Trainings

SAP Training
SAP SD Training
SAP Access
Concepts
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 organizational 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
product 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.
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.
Company
GE Medicals is the name of the company. This company has presence
across the world. And when GE 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.
Company Code
GE Medicals in the US will be run through a legal entity. A company code is
an entity that has to report its financials to the government on a timely
basis. For example an Incorporated entity can be called a company code.
In this case, GE Medicals in the US is being called as a legal entity.
Sales Organization
Since the company has presence across the US, there will be sales
organizations across the united states responsible for selling goods. For
example, the Western division is responsible for selling goods in the
Western states. The same organization is also responsible for handling
returns, credits, availability of materials etc.
Distribution Channel
Just as the name speaks, a distribution channel is the sales channel
through which products are distributed. In this case, the medical equipment
could be sold through the direct channel or through an agency. Each of
them will be represented as a distribution channel. A more common
example could be Retail or Wholesale.
Division
Division is purely related to the product/service we are selling. Its a
grouping of our products. For example all different types of X-Ray
machines would fall under the X-Ray division.
Sales Office
The western division of the company might be having multiple sales offices
in california. For example there could be one in the bay area and another in
Los Angeles
Sales Group
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 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.
Plant
A plant is where goods are manufactured. Sometimes, you might not even
manufacture anything – Just trade 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 Location
Each plant could be associated with multiple storage locations – A place
where goods are stored before being sold. For example, the new jersey
plant could have storage locations in Edison and Iselin.
Warehouse
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, storage conditions etc. Goods can still be sold without using
Warehouse Management, but a sales cannot happen without a storage
location.
Sales Office
A combination of the sales organization, distribution channel and division is
called the sales area.

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.

The exact configuration steps are below.

Definition
Plant
Define the plant New Jersey or Arkansas.

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Define, Copy, Delete Check Plant ]
Division
Define A division say X-Ray or CT

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Define, Copy, Delete Check Division]

Sales Organization
Define the Sales Organization East, West or South West

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition -> Sales
& Distribution -> Define, Copy, Delete,Check Sales Organization]

Distribution Channel
Define the division say Agency or Direct

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Define, Copy, Delete Check Distribution Channel]

Sales Office
Define the Sales office , say – Bay Area or Los Angeles

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition -> Sales
& Distribution -> Maintain Sales Office]

Sales Group
Define the division say Field Applications or Consumables

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Maintain Sales Group]
Storage Location
Define the Storage Location say – Edison or Iselin

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition -

>Materials Management -> Define Storage Location]

Warehouse
Define the warehouse – Give it any name you like.

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics Execution-> Define, Copy, Delete Check Warehouse Number]

Shipping Point
Define the Shipping Point , say – Door1 or Door 2

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics Execution -> Define, Copy, Delete Check Shipping Point]

Sales Group
Define the division say Field Applications or Consumables

Configuration = [ spro -> IMG -> Enteprise Structure -> Definition ->
Logistics General -> Maintain Sales Group]

Assignment
Plant to Company Code
Assign the Plant you have created to the company code 1000.

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment->

Logistics General -> Assign Plant to Company Code ]
Tip : When you assign the plant to company code ( Since copies were
made off of 0001 ), the system will say that the assignment has already
been made with 0001. This is because of the “Copy” effect.
For example, we have created a new plant for New Jersey ( NEW6 ) , but
by default it has already been assigned to 0001 company code.

Since a plant can only be assigned to 1 company code, you cannot assign
the plant to a company code of your choice. In this case, delete this
assignment and create another.
When you delete an existing assignment, you get the following error
message. You can choose “YES”

And then , as usual, create a new entry to assign the newly created plant to
the company code of your choice.
Sales Organization to Company Code
Assign the Sales Organization to the company code 1000

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment-> Sales
& Distribution -> Assign Sales Organization to Company code]
Distribution Channel to Sales organization
Assign the distribution channel you have created to the sales organization
you have created in the definition step.

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment-> Sales
& Distribution -> Assign Distribution Channel to Sales Organization]

Division to Sales Organization

Assign the division that you have created to the sales organization .

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment-> Sales
& Distribution -> Assign Division to Sales Organization]

Set up Sales Area

Set up Sales area as the combination of Sales Organization, distribution
channel and division

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment-> Sales
& Distribution -> Set up Sales Area]

Sales Office to Sales Area

Assign the Sales Office Created earlier in the definition step to the Sales
Area you created in the previous step.

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment->Sales

& Distribution -> Assign Sales Office to Sales Area]

Sales Group to Sales Office

Assign the Sales Group to the Sales Office
Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment->Sales
& Distribution -> Assign Sales Group to the Sales Office]

Sales Organization + Distribution Channel to Plant

The Sales Organization and Distribution Channel needs to be assigned to
Plant.

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment-> Sales
& Distribution-> Assign Sales Organization - distribution Channel - Plant]

Warehouse Number to Plant / Storage Location

Assign the Warehouse Number you have created to the Plant and Storage
Location combination

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment->

Logistics Execution ->Assign Warehouse Number to Plant/Storage
location]

Shipping Point to Plant

Assign the shipping Point to Plant

Configuration = [ spro -> IMG -> Enteprise Structure -> Assignment->

Logistics General -> Assign Shipping Point to Plant]

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20 Responses to ―SAP SD Enterprise Structure‖

1.
Sudhakar November 14, 2011 at 4:50 pm #
Siva,

I encountered a problem when I was creating the enterprise structure. I

copied the company code and created my own CC (7667).

S.org (SAIP)
Dis. Ch (SC, LC)
Div (S0, L0)
Plant (PRAN)

I assigned everything accordingly. Please take a look and let me know if I

made any mistake.

Also I created a customer named ABCD inc under S.org and material P-10.

When I tried to create a SO for material P-10 for customer mentioned

above I am getting an error saying

(P-10 is not defined for the S.org, Dis ch and Div);

can you please take a look at it.

Thanks,
Sudhakar.

REPLY

o
siva November 15, 2011 at 6:42 am #
Hi Sudhakar
Your Customer 7100 ( ABCD Inc ) is created fine. But the material P-
10 is not created in Sales Org SAIP, dist. Chnl SC and Plant PRAN.
 Please extend the material for the same and try
again.

REPLY

2.
Braj November 10, 2011 at 6:05 pm #
Hi Siva,

I tried to create an Enterprise Structure, could you please kindly verify the
below. Thank You !

Sales Organization = ZBGE

Distribution Channel = B1
Division = BB
Sales Office = ZBET
 Sales Group = ZB1 & ZB2
Plant = B001
Shipping Point = ZBS1

REPLY

3.
Rajesh October 27, 2011 at 9:52 pm #
Siva,

Created the Following :

1.Sales Org —– East

2.Dist.Chann—–GA, DI
3.Sales Office— BASO
4.Sales Group– GCO
5.Division——– XY & CT
6.Plant ———- NEJY
7.Location—— SL1

Assigned the Following :

Sales Org – Dist Chan, Divisiom – Sales Org, Sales Group- Sales Office,
Sales Org- Dist Chann – Plant, Sales Org – Dist Channel – Division, Sales
Office – Sales Area

I could able to display the org stracture in the syatem using the T:Code:
EC01.
Please review…

Rajesh

REPLY

4.
 Zahid Abbas August 16, 2011 at 9:14 am #
Sales Org. to Company Code.

BABA = 1000

Dist. Channel to Sales Org.

BA = BABA

Division to Sales Org.

AD = BABA

Sales Area.

Ad = BA = BABA

Sales Off. to sales Org.

ABBA = BABA

Sales Group to Sales Off.

ABB = ABBA

Sales Org to Dist. Channel to Plant.

BABA = BA = ABPL

REPLY

5.
Zahid Abbas August 16, 2011 at 4:52 am #
SALES ORG = BABA

REPLY

6.
Zahid Abbas August 16, 2011 at 4:50 am #
 DISTRIBUTION CHANNEL = BA

DIVISION = AD

REPLY

7.
Zahid Abbas August 16, 2011 at 4:47 am #
Company Code = 1000

Sales Office = ABBA

Sales Group = ABB

Plant = ABP

Storage Location = ABPL

Warehouse = BAW

Shipping Point = BASP

REPLY

8.
Vinod August 6, 2011 at 3:54 am #
A. Can you assign multiple company codes to a Sales Organization ? If not
why ?
No, this is not possible. You can have multiple Sales orgs assigned to a
Company Code but not visa versa.

B. Can you assign multiple Sales Organizations to a company code ? If

yes, give a business scenario.
There can be 3 sales orgs based on geographic locations– 1. USA. 2.
Europe & 3. Asia
All the three can be assigned to a single company code.
 C. Can you assign multiple distribution channels to a Sales Organization ?
If yes, give a business scenario which would require such an assignment.
You can have the distribution channels like online sales, direct sales,
corporate account sales. All these can be assigned to a Sales Org.

D. Can you assign multiple divisions to a sales organization ? If yes, give a

business scenario which would require such an assignment.
Yes, this is possible. Divisions are based on product lines and each sales
org can support diff. product lines. For ex., Apple can have a divisions for
#1. iPhone sales, #2. Mac sales, #3. Ipad sales, etc.,

E. Can you set up multiple Sales Areas using the same Sales Organization
? ( For example, can you set up 1000/01/01 and also 1000/10/01 ? )
This is not possible, one sales org can belong to one sales area.

F. Can you assign a single sales office to multiple sales areas ? If yes, why
would you want to do that ?
Siva, can you explain me this scenario.

G. Can a sales group belong to multiple sales offices ? If yes, give a

business scenario which would require it
Can the same shipping point belong to multiple plants ?
Siva, can you explain me this scenario.

REPLY

9.
Bhanu August 4, 2011 at 12:27 am #
Siva,

Created the Following :

1.Sales Org —– 9099

2.Dist.Chann—–ZD
3.Sales Office— ZATL
4.Sales Group– ZAG
5.Division——– ZB
6.Plant ———- ZBP
7.Location—— ZBL

Assigned the Following :

1.Sales Org – Dist Chan

2. Divisiom – Sales Org
3. Sales Group- Sales Office
4. Sales Org- Dist Chann – Plant
5. Sales Org – Dist Channel – Division
6. Sales Office – Sales Area

Created a Customer 000006BD and tried to create an order for this

customer under the new Sales Area 9099+ZD+ZB but after selecting the
material M-01 got an error msg that No Pricing Procedure defined— Table
683V

Please clarify

Thanks

REPLY

o
Bhanu August 5, 2011 at 3:24 pm #
Siva,

Can you please let me know why am i getting the above error.

Thanks
Bhanu
 REPLY


Bhanu August 5, 2011 at 4:57 pm #
I think its the table 683 V which is for Pricing Procedures and
this table is not getting copied properly over . Could you please
let me know and set it right. Cause I cant create an order under
my Sales Area.

REPLY

10.
Zahid Abbas August 3, 2011 at 3:01 pm #
Warehouse – ZKW

Shipping Point – ZKPO

REPLY

11.
Zahid Abbas August 3, 2011 at 2:49 pm #
Sales Org – ZAKA

Distribution Channel – ZK

Division – ZD

Sales Office – ZKSO

Sales Group – ZK1

Plant – ZKPL

REPLY

12.
GAUTAM July 25, 2011 at 7:47 pm #
Gautam sales org = zgd1
Gautam distribution = zg
Gautam division = zg
Gautam sales office = zgdo
Gautam sales group = zgd
Gautam Plant zgpl
Gautam stroage location = zgdl
Gautam warehouse -zgw
Gautam shipping point = zgdp

assign plant to company code = zgpl to 1000

assign sales org to company code = ZGD1 to 1000
assign distribution channel to division = ZG to ZG
assign division to sales organisation = ZG to ZGD1
set up sales area = ZGD1 – ZG – ZG
assign sales office to sales area = ZGDO to ZGD1 – ZG – ZG
assign sales group to sales office = ZGD to ZGDO
assign Sales Organization + Distribution Channel to Plant ZGD1—-ZG–
ZGPL
assign Warehouse Number to Plant / Storage Location ZGW – ZGDL –
ZGPL
assign shipping to plant = ZGDP to ZGPL
Gautam sales org = zgd1
Gautam distribution channel= zg
Gautam division = zg
Gautam sales office = zgdo
Gautam sales group = zgd
Gautam Plant zgpl
Gautam stroage location = zgdl
Gautam warehouse -zgw
Gautam shipping point = zgdp

assign plant to company code = ZGPL to 1000

assign sales org to company code = ZGD1 to 1000
assign distribution channel to division = ZG to ZG
assign division to sales organisation = ZG to ZGD1
set up sales area = ZGD1 – ZG – ZG
assign sales office to sales area = ZGDO to ZGD1 – ZG – ZG
assign sales group to sales office = ZGD to ZGDO
assign Sales Organization + Distribution Channel to Plant ZGD1–ZG–
ZGPL
assign Warehouse Number to Plant / Storage Location ZGW – ZGDL –
ZGPL
assign shipping to plant = ZGDP to ZGPL

SD Configuration

Enterprise Structure:1 Edit, Copy, Delete, Check Company Code(T001)

Company is created by FI Consultant.
The company code is an organizational unit used in accounting. It is
used to structure the business organization from a financial accounting
perspective.
IMG -> Enterprise Structure -> Definition -> Financial Accounting ->
Define, copy, delete, check Company Code

2 Define Credit Control Area(T014)

Company is created by FI Consultant.
The credit control area is an organizational unit that specifies and checks a credit limit
for customers.A credit control area can include one or more company codes. It is not
possible to assign a company code to more than one control area. Within a credit
control area, the credit limits must be specified in the same currency.
IMG -> Enterprise Structure -> Definition -> Financial Accounting-> Define Credit
Control Area
3. Maintaining Sales Organization(TVKO)
Sales Organization is an organizational unit responsible for the sale of certain products
or services.
IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy,
delete, check Sales organization
4. Assigning Sales Organization to Company Code(TVKO~BUKRS)
This assignment ensures all the sales made through this Sales Organization are
accounted for in the assigned Company Code (Company Code is created by FI
Consultant).
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales
Organziation to Company Code
5. Maintaining Distribution Channel(TVTW)
Distribution Channel is the way, in which Products or Services reach Customers.
IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Define, copy,
delete, check distribution channel
6. Assigning Distribution Channel to Sales Organization(TVKOV)
This assignment ensures, a Sales Organization can supply Materials to Customers
through this Distribution Channel.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution > Assign
distribution channel to sales organization
7. Maintaining Division(TSPA)
Division is a way of grouping materials, products, or services.
IMG -> Enterprise Structure -> Definition -> Logistics – General -> Define, copy, delete,
check division
8. Assigning Division to Sales Organization(TVKOS)
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign division
to sales organization
9. Setting up Sales Area(TVTA)
All the sales are made from a particular sales Area. For creating a Sales Order Sales
Area is compulsory.
IMG ->Enterprise Structure -> Assignment -> Sales and Distribution -> Set up sales
area
10 Maintain sales office(TVBUR)
you define the sales offices in your company. The definition of sales offices is optional.
For each sales office, you can determine the printer for output based on the sales
documents in different ways
IMG -> Enterprise Structure -> Definition -> Sales and Distribution -> Maintain Sales
Office
11 Assign sales office to sales area(TVKBZ)
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales
Office to Sales Area
12 Maintain sales Group(TVKGR)
company. The definition of sales groups is optional. You can use the SD system without
creating sales groups.
13 Assign sales group to sales office(TVBVK)
you can assign as many sales groups as desired to the sales offices. Any one sales
group can belong to several sales offices.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales
group to sales office
14. Define Shipping Points(TVST)
Shipping Point is the Organizational element, which is responsible for shipping the
Materials to the Customers.
IMG -> Enterprise Structure -> Definition -> Logistics Execution -> Define, copy, delete,
check shipping point
15 Define, copy, delete, check plant(T001W)
Plant is created by MM Consultant.
IMG -> Enterprise Structure -> Definition -> Logistics – General -> Define, copy, delete,
check plant
16 Assigning Shipping Point to Plant(TVSWZ)
This assignment ensures that goods from different Plant can be dispatched from
different Shipping Points.
IMG -> Enterprise Structure -> Assignment -> Logistics Execution -> Assign shipping
point to plant
17. Assigning Sales Organization- Distribution Channel- Plant(TVKWZ)
Plant is created ny MM Consultant.
IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales
organization – distribution channel – plant
Note: Ensure to do the undermentioned configuration also though it is not in
Customizing node of Enterprise Structure.
18. Defining Common Distribution Channels for Master Data(TVKOV-VKWKO
TVKOV~VTWKU)
Use
The purpose of this activity is to define distribution channels which have common
master data..

Procedure
Access the activity using one of the following navigation options:
IMG Menu -> Sales and Distribution -> Master Data -> Define Common Distribution
Channels
Transaction Code: VOR1

19. Defining Common Divisions for Master Data(TVKOS-SPAKO TVKOS~SPAKU)

Use
The purpose of this activity is to define distribution channels which have common
master data..

Procedure
Access the activity using one of the following navigation options:
IMG Menu -> Sales and Distribution -> Master Data -> Define Common Division
Transaction Code: VOR2

Pricing Procedure
In SD, Pricing Procedure is determined based on Sales Area (Sales Organization +
Distribution Centre + Division) + Customer Pricing Procedure + Document Pricing
Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing
Procedure is determined from Customer Master. Document Pricing Procedure is
determined from Sales Document Type / Billing Type (if configured). Once the pricing
procedure is determined, Condition records are fetched. If appropriate condition records
are found, the price is determined. If Mandatory pricing condition is missing, system will
through an error message.
In SD, the steps to configure Pricing procedure are as under:
Step 1:
Condition table: If existing condition table meets the requirement, we need not create a
new condition table. Considering the requirement for new condition table, the
configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic
Function -> Pricing Control -> Condition Table (select the required fields combination,
which will store condition record).
Step 2:
Access Sequence: If existing access sequence meets the requirement, we need not
create a new access sequence. Considering the requirement for new sequence, the
configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic
Function -> Pricing Control -> Access Sequence (Access sequence is made up of
Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign
the condition table to access sequence.
Step 3:
Condition Type: If existing condition type meets the requirement, we need not create a
new condition type. Considering the requirement for new condition type, the
configuration will be done in spro as follows: IMG -> Sales & Distribution -> Basic
Function -> Pricing Control -> Condition Type. It is always recommended to copy an
existing similar condition type & make the neccessary changes. Here we assign Access
sequence to Condition type.
Step 4:
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the
neccesary changes in new pricing procedure. Pricing Procedure is a set of condition
type & arranged in the sequence in which it has to perform the calculation. Considering
the requirement for new Pricing Procedure, the configuration will be done in spro as
follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control -> Pricing
Procedure –> Maintain Pricing Procedure.
b. Pricing Procedure: After maintaining the pricing procedure the next step will be
determination of pricing procedure. Configuration for determining pricing procedure in
SPRO is as follows: IMG -> Sales & Distribution -> Basic Function -> Pricing Control ->
Pricing Procedure –> Determine Pricing Procedure.
5. Condition record: Condition record is a master data, which is required to be
maintained by Core team / person responsible from the client. During new
implementation, the condition records can be uploaded using tools like SCAT, LSMW,
etc.
Normal Sales Order Cycle:-
Step 1: Sales Document Type
IMG > Sales and Distribution > Sales > Sales Documents >
Sales Document Header:
1. Sales Document Type:The sales document types represent the different business
transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order
type, always copy as with reference to similar sales order. If possible use standard
sales order.
2. Define Number Ranges For Sales Documents: Maintain number range with
discussion with core team.
3. Assign Sales Area To Sales Document Types:
A. Combine sales organizations / Combine distribution channels / Combine divisions:
Ensure to maintain these, else Sales Order creation will give error.
B. Assign sales order types permitted for sales areas: Assign only required Sales Order
Types to required Sales Area. This will minimize selection of Sales Order Type as per
sales area.
Sales Document Item:
1. Define Item Categories: If possible use Standard Item Category. Incase if required
to create new, copy as from standard & maintain New.
2. Assign Item Categories: If possible, use standard. Formula for deriving item
category: Sales Document Type + Item Category Group + Usage + Higher Level Item
Category = Item Category
Schedule Line:
1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if
required to create new, copy as from standard & maintain New.
2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving
Schedule Line: Item Category + MRP Type / No MRP Type.
Step 2:
IMG > Logistic Execution > Shipping > Deliveries >
1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to
create new, copy as from standard & maintain New.
2. Define Item Categories for Deliveries: If possible use Standard Item Categories for
Delivery Type. Incase if required to create new, copy as from standard & maintain New.
3. Define Number Ranges for Deliveries: Ensure to maintain number range.
Step 3:
IMG > Sales and Distribution > Billing >
1. Define Billing Types: If possible use Standard Billing Type. Incase if required to
create new, copy as from standard & maintain New.
2. Define Number Range For Billing Documents: Ensure to maintain number range.
3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls
such as Sales Order to Billing, Deliver to Billing, etc.

The configuration differs from scenario to scenario & requirement of the client.

SAP SD Transaction codes List

I found a way to know hidden customizing Tcodes.

Before executing customizing task you desire, point it and go to Edit-Display IMG
Activity. Then mark activity.

Go to T.Code se16 and type in CUS_IMGACH table.

Execute.
Paste IMG Activity and run.
You will see Tcode that belongs to IMG Activity.

SAP SD Tips by: Javier

The most frequently used transaction codes are as follows:

1. VS00 - Master data
2. VC00 - Sales Support
3. VA00 - Sales
4. VL00 - Shipping
5. VT00 - Transportation
6. VF00 - Billing

Others as follows:
At Configuration:
1. VOV8 - Define Sales documents type (header)
2. OVAZ - Assigning Sales area to sales documents type
3. OVAU - Order reasons
4. VOV4 - Assign Item categoreies(Item cat determination)
5. VOV6 - Scedule line categories
6. OVAL - To assign blocks to relevant sales documents type
7. OVLK - Define delivery types
8. V/06 - Pricing
9. V/08 - Maintain pricing procedure
10.OVKP - Pricing proc determination
11.V/07 - Access sequence

Enduser:
1. Customer Master Creation-VD01 and XD01 (for full inclu company code)
VD02 - Change Customer
VD03 - Display Customer
VD04 - Customer Account Changes
VD06 - Flag for Deletion Customer
XD01 - Create Customer
XD02 - Modify Customer
XD03 - Display Customer
2. Create Other material ----MM00
3. VB11- To create material determination condition record
4. CO09- Material availability Overview
5. VL01 - Create outbound delivery with ref sales order
6. VL04 - Collective processing of delivery
7. VA11 - Create Inquiry
VA12 - Change Inquiry
VA13 - Display Inquiry

Sales & Distribution

Sales order / Quote / Sched Agreement / Contract
· VA01 - Create Order
· VA02 - Change Order
· VA03 - Display Order
· VA02 - Sales order change
· VA05 - List of sales orders
· VA32 - Scheduling agreement change
· VA42 - Contract change
· VA21 - Create Quotation
· VA22 - Change Quotation
· VA23 - Display Quotation

Billing
· VF02 - Change billing document
· VF11 - Cancel Billing document
· VF04 - Billing due list
· FBL5N - Display Customer invoices by line
· FBL1N - Display Vendor invoices by line
Delivery
· VL02N - Change delivery document
· VL04 - Delivery due list
· VKM5 - List of deliveries
· VL06G - List of outbound deliveries for goods issue
· VL06P - List of outbound deliveries for picking
· VL09 - Cancel goods issue
· VT02N - Change shipment
· VT70 - Output for shipments

General
· VKM3, VKM4 - List of sales documents
· VKM1 - List of blocked SD documents
· VD52 - Material Determination

Sales and Distribution:

Table Description

Customers
KNA1 General Data
KNB1 Customer Master – Co. Code Data (payment method,
reconciliation acct)
KNB4 Customer Payment History
KNB5 Customer Master – Dunning info
KNBK Customer Master Bank Data
KNKA Customer Master Credit Mgmt.
KNKK Customer Master Credit Control Area Data (credit limits)
KNVV Sales Area Data (terms, order probability)
KNVI Customer Master Tax Indicator
KNVP Partner Function key
KNVD Output type
KNVS Customer Master Ship Data
KLPA Customer/Vendor Link

Sales Documents VBAKUK VBAK + VBUK

VBUK Header Status and Administrative Data
VBAK Sales Document - Header Data
VBKD Sales Document - Business Data
 VBUP Item Status
VBAP Sales Document - Item Data
VBPA Partners
VBFA Document Flow
VBEP Sales Document Schedule Line
VBBE Sales Requirements: Individual Records

SD Delivery Docume

LIPS Delivery Document item data, includes referencing PO LIKP Delivery

Document Header data

Billing Document

VBRK Billing Document Header

VBRP Billing Document Item

SD Shipping Unit

VEKP Shipping Unit Item (Content)

VEPO Shipping Unit Header

SAP SD Training – Enterprise Structure

Excercise – Jan 2011 Batch
BY MAGNATRAIN ON FEBRUARY 3, 2011 IN SAP SD TRAINING, SAP TRAINING
This post talks about the enterprise structure in SAP SD Training for the
Jan 2011 batch. It also provides all the necessary configuration steps
required to do the configuration along with the visual representation of the
structure. For other SAP Training modules , please visit our Magna
Training home page . You would also need SAP Access to practice on
these questions. You can get SAP Access from our preferred vendor.
Simplified Visual Representation of the
Enterprise Structure in SAP SD
 Please go ahead and create the enterprise structure as discussed in the
class today. The company code that we will be using is 1000 for this
exercise. The configuration steps are defined at SAP SD Enterprise
Structure Configuration Steps .(Scroll down to the bottom of the page to
view the configuration steps )
Please answer the questions in this forum as comments.

Questions
Write down the Organization Elements that you have created.

1. Sales Organization ( eg. if you have created WEST , list it as WEST

against the Sales Organization )
2. Distribution Channel
3. Division
4. Sales Office
5. Sales Group
6. Plant
7. Storage Location
8. Warehouse
9. Shipping Point
Also write down the assignments that you have created

1. Plant to Company code ( eg., if you have created a Plant of ARKA , list it as
ARKA plant assigned to company code 1000 )
2. Sales Organization to company code
3. Distribution channel to Sales Organization
4. Division to Sales Organization
5. The Sales area you have set up
6. Sales Office to Sales Area
7. Sales Group to Sales Area
8. Sales Organization + Distribution Channel to Plant
9. Warehouse Number to Plant/Storage Location
10. Shipping Point to Plant.
More quiz questions

1. Can you assign multiple company codes to a Sales Organization ? If not

why ?
2. Can you assign multiple Sales Organizations to a company code ? If yes,
give a business scenario.
3. Can you assign multiple distribution channels to a Sales Organization ? If
yes, give a business scenario which would require such an assignment.
4. Can you assign multiple divisions to a sales organization ? If yes, give a
business scenario which would require such an assignment.
5. Can you set up multiple Sales Areas using the same Sales Organization ? (
For example, can you set up 1000/01/01 and also 1000/10/01 ? )
6. Can you assign a single sales office to multiple sales areas ? If yes, why
would you want to do that ?
7. Can a sales group belong to multiple sales offices ? If yes, give a business
scenario which would require it
8. Can the same shipping point belong to multiple plants ?