ORGANIZATIONAL

STRUCTURES
OUTLINE
 Organizational units
 Client
 Company code
 Plants and storage locations
 Warehouse number
 Sales area
 Shipping point
 Purchasing

 Master Data
 Business partners
 Material master
 Batches
 Prices and conditions

 Integration and Distribution

ORGANIZATIONAL UNITS IN
SAP
 Client
 The uppermost organizational level in all components of SAP Business Suite

 Divides the company into three area:

 Application data (master and transaction data)
 Client-based system and organizational structures
 User Management
ORGANIZATIONAL UNITS IN
SAP
 Company Code
 Company codes are directly allocated to a specific client and form the second
organizational level

 represent a self-contained accounting unit and are the basis for the generation of
legal documentation such as annual balance sheets and profit and loss accounts

 Maps the organization according to the accounting division

ORGANIZATIONAL UNITS IN
SAP
 Plant and Storage Location
 Plants and their allocated storage locations represent those locations of a company
in which materials are physically located.
 Allocated to one company code
 Procurement perspective
 Production perspective
 Logistics perspective
 A plant serving as a location for materials management can be logically divided into
several storage locations
 In SAP SCM, a location refers to a logical or physical location in which the
quantitative management of products and resources can take place
ORGANIZATIONAL UNITS IN
SAP
ORGANIZATIONAL UNITS IN
SAP
ORGANIZATIONAL UNITS IN
SAP
 Warehouse Number
 A warehouse number is based on subordinate organizational units, such as:
 Warehouse type
 Storage areas,
 Spatial circumstances

 All storage-specific material master data, such as information on palletization and

put-away into and removal from storage, is stored on the warehouse number level
ORGANIZATIONAL UNITS IN
SAP
Sales Area

 A sales area determines the distribution channel through which a sales organization
can sell products of a specific division:
 Sales organization
 Distribution channel
 Division
ORGANIZATIONAL UNITS IN
SAP
 Shipping Point
 The shipping point is an organizational unit of distribution logistics, and represents
a place or group of people responsible for shipping activity.
 Responsibilities are based on following criteria
 Delivering plant
 Dispatch type (rail, truck, airplane, etc.)
 Necessary loading equipment (forklift, elevating truck, etc.)
ORGANIZATIONAL UNITS IN
SAP
 Purchasing Organization and Purchasing Group
 The purchasing organization is an organizational unit used to organize an enterprise
according to purchasing demands.
 Standard purchasing organization
 Reference purchasing organization
 A single purchasing organization procures for one plant
 A single purchasing organization procures for several plants
 Several purchasing organizations procure for one plant

 A purchasing group is a purchaser or group of purchasers

MASTER DATA
 Data records that remain unchanged over an extended period of time and are stored in
the database for lengthy periods. It includes:
 customer master data records
 material master data
 procurement and sales and distribution

 Significant master data types for logistics

 Business partners such as customers and vendors
 Material masters
 Prices and conditions
 MASTER DATA
 Business Partners
 legal entities or individuals with whom a company maintains business contacts
 Customers / debitors
 Suppliers / creditors

 There are three levels, or views, involved in the maintenance of a customer master
record:
 General data
 Sales area data
 Company code

 SAP Customer Relationship Management System (SAP CRM) will generally be the
leading system for the maintenance and generation of business partners
MASTER DATA
 MASTER DATA
 Material Master
 Products and services are centralized in SAP systems under the term material
 Entirety of all material master records stored in an SAP system, contains all required
information regarding the materials that a firm produces, procures, stores or sells
 The material master is the central source in an SAP system for obtaining material-specific
information

 The material master is especially utilized by the following functional areas with
regard to logistics
 by procurement logistics for the procurement and ordering procedure and invoice verification
 by warehouse logistics and inventory management for goods movement and physical inventory
management
 by production logistics for material requirements and procurement planning
 by distribution logistics for activities related to sales and distribution
 MASTER DATA
 Batches
 Batches represent product quantities that can be concentrated in a homogeneous subset
based on certain attributes, or specifications
 The batch is especially useful in enabling a differentiated procedure in the realms of sales
and external procurement, based on one particular product specification and attribute

 Decisions
 Batch management requirement
 Batch specification
 Batch determination

 Batch Information Cockpit in SAP

 MASTER DATA
 Prices and Conditions
 Prices and conditions are stored in the so-called condition records, such as
 Discounts
 additional charges
 freight charges
 And taxes

 Record is updated based on condition type

 INTEGRATION AND

DISTRIBUTION
The technical integration and exchange of this data is done from an ERP
standpoint primarily via CRM Middleware and APO Core Interface (CIF).