Business Scenario

Genious Corporation
Business Registered Name
1 Computer Accessories Pheonix India Private Limited

2 Electrical & Electrical Appliances Standard Electricals India Private Limited

3 Cycle Manufacturing and Sales Speed India Private Limited

4 Home Appliances Unity India Private Limited

Business Place
Tamil Nadu Chennai CBE

Karnataka Ele City

Hydrabad Sec-bad

Kerala Cochi

Product
Computer Accessories E & E Appliances
1 Keyboard 1 Electrical Switch 1
2 Moniter 2 80wts Cable 2
3 Printer 3 Celing Fan 3
4 Lights
5 Power House
 Business Area
Chennai CBE Ele City Sec-bad

ndia Private Limited Sec-bad Cochi CBE

SLM CBE Sec-bad Cochi Chennai Ele City

Ele City Chennai CBE

SLM

Cycle Home Appliances

Kids Cycle 1 LED TV
Sports Cyc 2 LCD TV
Regular 3 Washing Machine
4 Refregiator
5 Dishwasher
Sales Area
INDIA

Sales Office
SLM CBE Sec-bad Cochi Chennai Ele City

Sales Group
Offline On-Line

Sales Organization
TN KL KR AP

Distribution Channel
Direct Commission

Division
Com Acc Hom App Cycle E & E App

Credit Control Area

INDIA
 Plant
Client

Purchase Organization
Company Code Company Code

Purchasing Group

Plant

Purchasing Purchasing
Organization 1 Organization 2

Purchasing Purchasing
Group A Group B
 TN KL KR AP

Purchase Organization
Com Acc Hom App Cycle E & E App

Purchasing Group
Brand Dealer Market
 Client 100 Group Currency 30

Controlling Area Genious Corporation 1 CO Area to N Com Codes

Apr to March
Company (Trading Partner) Genious Corporation Global Currency 60

Company Code Local Currency

Pheonix India Private Limited
Standard Electricals India Private Limited
Speed India Private Limited
Unity India Private Limited

Business Area SLM CBE Sec-bad Cochi Chennai Ele City

Consolidate Business Area Tamil Nadu Hydrabad Karnataka

SLM Sec-bad Ele City
CBE
Chennai

Fiscal Year Variant April to March

Posting Period Variant

Field Status Variant

Open and Close Posting Period

Chart of Accounts

Account Group & Number Range

Document Types & Number Range

Posting Key

Document Splitting
 USD

1 CO Area to N Com Codes 30

Apr to March COA

Local Currency 10 INR

Document Currency `00

Kerala
Cochi
Sales and Distribution
Enterprise Structure
Sales Organization
Distribution Channel
Division
Sales Group
Sales Office
Sales Area
SAP enterprise structure is organizational structure that represents entire business structure in SAP R/3 system.
It consists of some organizational units are mapped to business structure based on some business requirements such as:
Company Code
Plants
Sales Offices
Sales Groups
Sales Persons
Shipping Points
Loading Points
Below are the organizational units related to SAP SD module:
Sales Organization
Distribution Channel
Division
Sales Group
Sales Office
Sales Area

Sales Organization:
Sales Organization is the top most organizational unit in sales and distribution module.
Sales Organization used to distribute products and services.
Sales Organization is responsible for all the activities or services that happen in the Client or Company.
Sales Organization should assign to One Company Code where the Company Code can have multiple Sales Organizations.
Sales Organization can be assigned to one or more Plant and multiple Sales Organizations can be assigned to one Plant.
Sales Organization can be used as selection criteria for listing of sales document as well as for creating delivery and billing wor
User can define different output types for sales and billing document for each Sales Organization.
Distribution Channel:
Distribution Channel is the process of distributing the goods and/or services to the customers.
Distribution Channel can be used as selection criteria for creating list.
Distribution Channel can be assigned to one or more Sales Organization.
Multiple sales document types can be defined to the distribution channel.
The items in delivery and billing documents of one distribution channel can be belong to the other distribution channel.
One or more distribution channel can serve the same customer within the sales organization.
One distributed channel master data can be used by other distribution channel.
Division:
Materials or products always belong to one division.
Division is products or range of products or a group of products.
Divisions assigned to the sales organization and multiple divisions can be assigned to sales organization.
Items in delivery or billing of one division can belong to another division.
Master data can vary from division to division and can use the same if shared master data created.
Division can be assigned to one or more distribution channels. Sales office can be assigned to division.
Sales document and delivery worklist can create by using division as selection criteria.
Sales Group:
Sales Group is the group of sales persons working for various purposes. Sales group can be assigned to the Sales office and mu
Sales Office:
Sales Office is an organizational unit which can use as a branch.
Sales Office contains group of sales persons working to perform the direct or indirect sales.
Sales office can be assigned to sales area and multiple sales offices can assign to a Sales Area.
Sales Area:
Sales Area plays an important role while processing sales.
Sales organization distribution channel uses to sell the products from the specific division.
Sales Area is a combination of Sales Organization, Distribution Channel and Division.
Sales document, delivery document and billing is always assigned to Sales Area.
Each Sales and Distribution document is assigned to only one Sales Area.
Sales Area is used for reporting and pricing.
Sales Area belongs to only one Company Code.
 in SAP R/3 system.
siness requirements such as:

multiple Sales Organizations.

n be assigned to one Plant.
r creating delivery and billing worklist.

other distribution channel.

ssigned to the Sales office and multiple Sales Groups can assign to One Sales Office.
SAP MATERIAL MANAGEMENT
SAP MM stands for Material Management. It is one of the important module of SAP Logistics that deals with Procurement, Ve
SAP MM module helps to implement the Supply Chain Management (SCM) in an organization and enables to control the inven
Organizational Structure of SAP MM
The important organizational element of Material Management is
1.) Client
2.) Company Code
3.) Plant
4.) Purchase Organization
5.) Storage Location
6.) Purchase Group

Client: It is a highest level of organizational unit that contains set of tables, master data, etc… In real-time SAP basis consultant
Company Code: Company Code is a separate legal entity or separate accounting department of an organization. All the financi
Plant: Plant is a location where the logistics activities such as production, services and maintenance facilities are performed.
Purchasing Organization: Purchase Organization is a physical organizational unit which is responsible for procurement of good
Storage Location: Storage Location is the sub division of plant where the materials are maintained and stored.
Purchasing Group: It is a group of persons or employees who are responsible with the materials that are being purchased in th
 that deals with Procurement, Vendor Master data and Material Resources of a company. In SAP, MM module records all the transactions
n and enables to control the inventory management, forecast customer demand and updated on all the transactions of supply chain. MM

… In real-time SAP basis consultant creates new SAP clients other than existing clients.
of an organization. All the financial statements like profit and loss account, business Balance Sheets, etc… are prepared at company code
enance facilities are performed.
ponsible for procurement of goods and services for an organization from the vendors.
ained and stored.
ials that are being purchased in the organization. Purchase groups are assigned to a respective material master.
 odule records all the transactions that related to goods or materials on a regular basis.
transactions of supply chain. MM module can be integrated with various modules of SAP such as Production Planning (SAP PP), Financial A

… are prepared at company code level.

tion Planning (SAP PP), Financial Accounting and Controlling (SAP FICO), Quality Management (SAP QM), Warehouse Management (SAP W
Warehouse Management (SAP WM), Sales and Distribution (SAP SD), etc… The integration of SAP MM with other modules enables the rep
ith other modules enables the replication of transactions that are processed in other SAP modules to MM module.