ORGANISATION STRUCTURE

ORG STRUCTURE
FINALIZATION
WORKSHOP
 OBJECTIVE

TO FINALIZE AND SIGN-OFF

ORGANIZATION STRUCTURE
 AGENDA

General Considerations Behind Org Structure

FI-CO Org Structure Discussion

MM Org Structure Discussion

SD Org Structure Discussion

PS Org Structure Discussion

PM Org Structure

Org Structure Sign-Off

 CONSIDERATIONS BEHIND
ORG STRUCTURE

Statutory & Legal Requirements

Financial Reporting & Analysis
Indian Taxation Laws (Eg. Service Tax & TDS)
Business Operation & Control
Inventory Management & Valuation
Procurement Methodologies
Sales reporting, Analysis & Pricing Strategy
Rental/Sales Unit Management
Maintenance Planning
Org. Structure - Levels

Client

Controlling Chart of Chart of

Area Accounts Depreciation CC Area

Purchasing
Group Company Business
Code Area

Purchasing Sales Profit Center

Org. Plant Organ.

Shipping Storage Distribution Sales Sales

Point Location Channel Office Group

Loading Division
Point
 Client

Highest Hierarchical Level in SAP (e.g. Unitech Group)

Can be Used to Differentiate between a Development,

Quality Assurance, and Production System within R/3

All Areas of an Organization that are to be Integrated

into the SAP R/3 Production System should be Included
Under one Client

Common Set of Rules

Common Tables , Master data & Data Bases

ORGANIZATION STRUCTURE

FI-CO
 Controlling Area

Definition

An organizational unit within a corporation in which

comprehensive independent management accounting
can be performed
Allows you to group companies from a Cost Accounting
View
Highest Reporting Level under Cost Center Accounting
across which Information can be Shared and Viewed
within the Controlling Module
Interdepartmental Cost Allocations across Companies
can be performed if they are within the Same Controlling
Area
 Controlling Area

Business Impact
The level of detail provided by the Controlling component
enables you to track specific information for cost monitoring,
business decisions and sales control. For example, the
Controlling component contains subdivisions such as cost
centers and internal orders in addition to GL accounts.
The assignment of controlling area and company code
may be 1:1 or 1:n. The advantage of 1:n assignment are :-
 Cost Monitoring at Controlling Area Level
 Cross Company code CO Postings

Field Size – 4 Characters

 Controlling Area

In Case of UPTL, The Proposed Controlling Area would be:

Code Description
UCON UPTL Controlling Area
 Company

Definition

An organizational unit for which individual financial

statements can be drawn up according to the relevant
commercial law.
A company can consist of one or more company codes.
All company codes within a company must use the same
transaction chart of accounts and the same fiscal year.
The company code currencies can be different.
A company has one local currency in which its
transaction figures are recorded.
 Company

Business Impact
This is used for consolidation purpose, suppose we
have three companies using same chart of account and
same fiscal year & this needs to be consolidate for
reporting purpose, then we need to create a company
and assign all 3 company codes to this company

Field Size – 6 Characters

 Company

In Case of UPTL, The Proposed Company would be:

Code Description
UNIGRP Unitech Group
 Company Code

Definition

Smallest organizational unit of external accounting for

which a complete, self-contained set of accounts can be
created.
This includes the entry of all transactions that must be
posted and the creation of all items for legal individual
financial statements, such as the balance sheet and the
profit and loss statement.
You should create a company code according to tax law,
commercial law, and other financial accounting criteria.
As a rule, a company code in the SAP system
represents a legally independent company.
 Company Code

Business Impact
The company code has to create in SAP system keeping in
view that legal reporting of the organization with external
agencies.

This is very important to get accurate and real time reporting

for internal and external purpose.

At this level financial transactions are recorded from legal

point of view.

The company code represent a separate legal entity in SAP

system.

Field Size – 4 Characters

 Company Codes

In Case of Unitech, The Proposed Company Codes would be:

Code Description

1000 Unitech Power Transmission Limited

 Credit Control Area

Definition

An organizational unit that represents an area responsible for

granting and monitoring credit.

This organizational unit is either a single company code

or, if credit control is performed across several company
codes, multiple company codes. Credit information can be
made available per customer within a credit control area.
 Credit Control Area

Business Impact

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.

Depending on requirement Credit Management can be at

Company or Sales Area or at Customer level. The company
code has to create in SAP system keeping in view that
legal reporting of the organization with external agencies.

Field Size – 4 Characters

 Credit Control Area

In Case of UPTL, The Proposed Credit Control Area would be:

Code Description
Same as Company Code UPTL Credit Control Area

(Credit Control Area : Co Code=1:1)

 Chart of Account

Definition

Chart of accounts provides a framework for the

recording of values to ensure an orderly rendering of
accounting data. The G/L accounts under COA are used
by one or more company codes.

This chart of accounts is the operative chart of accounts

and is used in both financial accounting and cost
accounting.
 Chart of Account

In Case of UPTL, The Proposed Chart of Account would be:

Code Description
UPCA UPTL Chart of Accounts
Profit Center & Profit Center Group

Definition
Profit Center Accounting lets you determine profits and
losses by profit center.
A profit center is a management oriented organizational
unit used for internal controlling purposes.
Dividing your company into profit centers allows you to
analyze areas of responsibility and to delegate responsibility to
decentralized units, thus treating them as “companies
within the company”.
Several cost centers can be linked to one profit center
for capturing costs and performing profitability analysis.
 Profit Center

Business Impact
The basic purpose of profit centre to derive segmental
reporting.

This is an important tool to derived profit & loss and

balance sheet at segment level.

While deciding profit centre, point to taken into

consideration that at what point reporting is required in
organization.

Once real data start flowing and if you add new segment
then reporting with old data may have a difficult task.

Field Size – 10 Characters

 Profit Center

In Case of UPTL, The Profit Centers would be created on the basis of plants.

Code Description
10000001 Corporate Office
10000002 Nagpur Factory
 Proposed Solution
(1 Client + 1 Op. Concern + 1 Cont. Area)
Credit Control
Area
Comp Code
1000

Credit Control
Area
P C Group

Credit Control
Area
P C Group
Client
Credit Control
Area
1000 Operating
P C Group
Concern
ControllingUNOP
Area
UCON

Profit Center
Gurgaon
 (1 Client + 1 Op. Concern + 1 Cont. Area)

Highlights
Profit & loss and balance sheet at each company code / Profit Center level possible

Segment / line of business / Product wise (across companies) profitability & comparison analysis possible

Ease & control of master data maintenance such as G/L, Vendor, Customer etc.,

Centralized & common processes / system across all companies

Business plan / Standard Price has to be broken up into multiple parts due to fiscal years being different
as presently done manually would be available through system.
ORGANIZATION STRUCTURE

Material Management
Organizational Structure

UPTL
(Company Code)

Purchase Org.

H.O,Gurgaon Menufacturing,Nagpur
(Plant) (Plant)

Project Office Project Office Raw Material Semifinished

(Store Location) (Store Location) (Store Location) (Store Location)

Finished Assesories
(Store Location) (Store Location)

Project Office
(Storage Location)
 Plants

Definition
Plant is an organizational unit, which subdivides the enterprise
from the prospective of manufacturing, planning, procurement
and maintenance.

Considerations:

Inventory Valuation.
Projects Storage
Authorization
 Plants for UPTL

Head Office , Manufacturig Facility,

Gurgaon(1001) Nagpur Plant (1002)
 Plant Considerations

Why separate Plants ?

Plant specific inventory valuation & tracking

Plant specific reporting/monitoring & controlling
To replicate the existing business transactions Separate Costing can be
carried out for these plant.
 Storage Location

Definition:
An organizational unit facilitating differentiation between the various stocks of
a material within a plant. (Physical Storage)

Considerations
A Location within a Plant where Inventory is Stored

Inventory Management on a quantity basis is carried out at storage

location level in the plant

Physical inventory is carried out at storage location level

The storage location is an organizational unit that allows the

differentiation of material stocks within a plant

A plant may contain one or more storage locations.

 Storage Location for UPTL

In Case of UPTL, The Proposed Storage Location would be:

Plant Code Storage Location Description

1001 001 Project DHVBNL.

1001 002 Project RNRL.

1002 A01 Raw Material

1002 A01 Assesories

1002 001 Project TATA

ORGANIZATION STRUCTURE

Purchasing
 Purchasing Organization

Definition:

An organizational unit responsible for procuring materials or services for one or more
plants and for negotiating general conditions of purchase with vendors.

Considerations:
Each purchasing organization has its own vendor master data.

Each purchasing organization evaluates its own vendors using MM Vendor rating.

Each purchasing organization has its own info records and conditions for pricing.

Authorizations control.

Monitoring & Reporting.

 Company specific Purchase
Organization
In Case of UPTL, The Proposed Purchase Organization would be:

Code Description

1000 Unitech Group Purchase Org.

 Purchasing Group

Definition:

A purchasing organization can be divided into several purchasing groups

that are responsible for different operational areas.

Codification Logic:

Incremental
 Purchasing Group

In Case of Unitech, The Proposed Purchasing Group would be:

Code Description
P01 Procurement (Iron, Zinc, – Raw material for factory)

P02 Procurement ( Assesories for both Plant & Project)

P03 Consumables

P04 IT Purchases

P05 HR-Admin Purchases

P06 Marketing & Commercial

ORGANIZATION STRUCTURE

Sales & Distribution

 Org Structure
Company Code : 1000
UPTL

Sales Organization : P
1000 UPTL Domestic Sales
SO L
Organization
Sales Area
A
N

Sales
T
Office : 001 S
Gurgaon

Sales
Group :
Powerline

Division : Distribution
01 Power- Channel : 01
line Towers Domestic
PSU
 Sales Organization (Contd)

Definition

A organizational unit in Logistics that structures the company according to its sales
requirements. A sales organization is responsible for selling materials and services.
A sales organization is the highest organization level in SD.
Legally, a sales organization is included in exactly one company code.
Within a sales organization, you can define your own master data. This allows a sales
organization to have its own customer and material master data.
sales organization cannot share any master data with other sales organizations.
Each Sales Organization is independently responsible for formulating planning, monitoring
and controlling sales activities. It is accountable for customer complaints.
You can assign one or more plants to a sales organization.

Considerations

The way Sales activities are planned, monitored and controlled (management segregation)
Segregation of Businesses
Pricing Strategy
Revenue accounting and MIS reporting
 UPTL – Sales Org

In Case of UPTL, we will have two Sales Organization for the entire
Company:

Code Description
1000 UPTL DOMESTIC Sales Org.
2000 UPTL EXPORT Sales Org.
 Distribution Channel

Definition

Channel through which saleable materials or services reach customers

Typical distribution channels include wholesale, retail, and direct sales.
You can assign a distribution channel to one or more sales organizations.
You allocate one or more plants to a distribution channel

Considerations

Mode of distribution of goods

Pricing Strategy
Sales Analysis
Revenue accounting and MIS reporting
 UPTL – Dist. Channel

In Case of Unitech, The Proposed Distribution Channel would be:

Code Description
01 Domestic PSU

02 Domestic Private Players

03 Foreign
 Division

Definition

An organizational unit based on responsibility for sales or profits from saleable

materials or services. Usually based on product grouping.
Represents Product Grouping at macro level.
Sales Areas and Business Areas are determined based on the divisions

Considerations

Product Grouping
Pricing Strategy
Sales Analysis
Revenue accounting and MIS reporting
 UPTL – Division

In Case of UPTL, The Proposed Division would be:

Code Description

01 High Voltage Transmission Towers

02 Sub Station Structures

03 Microwave & Telecom Towers

04 Windmill Structures

05 Railway Electrification Masts

06 Solar Panel Steel Structures

07 Miscellaneous – Scrap

08 Others ( Civil. work)

 Sales Office

Definition

Sales Office represents a physical location where sales orders are

booked within a given geographical area.

Considerations

Actual geographical locations.

Sales Analysis.
MIS Reporting.
 Unitech – Sales Office

In Case of Unitech, The Proposed Sales Office would be:

Code Description

001 Gurgaon

002 Nagpur
 Sales Group

Definition

A group of sales people who are responsible for processing sales of certain
products or services.

Considerations

Group of people working under Sales Offices

In Case of UPTL, The Proposed Sales Group would be project wise:

 Shipping Points

Definition
The physical location (for example, a warehouse or collection of loading ramps)
from which materials are shipped. Shipping point is most important criteria to
process deliveries.

Considerations
Plants
Loading points and loading locations.

In Case of UPTL, The Proposed Shipping Points would be same as

Plant :
 Org Structure – SD

Corporate Direct Indirect Stk Trf

Credit Control
Area
Company : UPTL
Credit Control
Area

CompCode

Credit Control
Area
CompCode
TL Ltd. Credit Control
Area : 1000

CompCode

Sales Org : 1000 UPTL Domestic SO 1000: UPTL Ltd.

Sales Organization Division Distribution Channel

MASTER DATA STRUCTURE

REFX
 Business Entity

Definition

The Business Entity represents the top hierarchical structure

element of the Real Estate Master Data Structure.
A Business Entity is a means of forming coherent groupings of
individual real estate objects, depending on their purpose and/or
geographical location.
Business Entities are directly assigned to a Company Code(1:n
relationship between company code and Business Entity).
 Business Entity

Company Code Company Code

(Unitech Limited - 1000) (Unitech High Tec Ltd -
2000)

Singleton
South City 2
Unihomes (Executive Grande
(Harmony)
Floor)

Company Code
(UDPL - 2400)

Info Space
 Business Entity

Company Code Company Code

(Unitech Reality - 2100) (Omkar Relators - 2300)

Uniworld
Residences
Garden 2 (Chembur)
Ascot (Dadar)
 Property/Building

Definition

Properties and Buildings are representing the second level in the

Real Estate Master Data Structure and they are directly
assigned to one Business Entity.
Property refers to the land only; it does not include the
facilities on it. Properties are parts of a Business Entity. This
object forms the basis for renting properties or parts thereof, such
as plots or villas.
Buildings or their parts are the basis for renting spatial
units, such as apartments, offices and shops.
Buildings and Properties are not linked together, they are on
the same hierarchical level, both linked to a Business Entity.
Building and Property can contain multiple Rental Objects (Rental
Units and Pooled Spaces).
 Property/Building

Company Code
(Unitech Limited - 1000)

Singleton
South City 2
Unihomes (Executive
(Harmony)
Floor)

Tower A Tower B

Company Code
(Unitech High Tec Ltd - 2000)

Grande

Block A Block B Block C Block D

 Property/Building

Company Code Company Code

(UDPL - 2400) (Unitech Reality - 2100)

Info Space Uniworld

Garden 2

Tower A Tower B
Tower A Tower B

Company Code
(Omkar Relators - 2300)

Residences
Ascot (Dadar)
(Chembur)

Block A Block B Tower A Tower B

 Rental Objects

Definition

Rental Objects represent the third level of hierarchy in the Real

Estate Master Data Structure. They are directly assigned to one
Building or Property.

Rental Objects are the master data category which is required for
Leasing. On the basis of the Rental Objects Lease Contracts
are created.

Rental Units represent fixed Rental Objects that can be rented

out as they were created, as a complete object.
 Rental Objects

A Pooled Space is a Rental Object where subsequently Rental

Spaces are extracted from. A Pooled Space cannot be leased out
itself as an independent object. A Pooled Space cannot include
space in different Buildings or Properties. It has to be assigned
directly to one Building or one Property. In the Pooled Spaces
concept in SAP Real Estate (RE-FX), the Rental Space (leased
area) is created according to the Lease Contract, which will be
extracted from the Pooled Spaces, decreasing the available (vacant)
space of that Pooled Space. The SAP Real Estate (RE-FX) system
keeps track, which part of the Pooled Space is occupied (i.e. a
Lease Contract exists), and which is vacant.
 Rental Objects

Company Code
(Unitech Limited - 1000)

Singleton
South City 2
Unihomes (Executive
(Harmony)
Floor)

Tower A Tower B

Apartment 1 Apartment 2 Apartment 3 Rental Units

 Rental Objects

Company Code
(Unitech High Tec Ltd - 2000)

Grande

Block A Block B Block C Block D

Apartment 1 Apartment 2 Apartment 3 Apartment 4

 Rental Objects

Company Code
Company Code
(UDPL - 2400)
(Unitech Reality - 2100)

Business Entity
Infospace
Uniworld
Garden 2

Tower A Tower B Buildings

Tower A Tower B
Offices Offices Pooled Spaces

Office Office Office Apartment 1 Apartment 2

Rental Spaces
Space1 Space 2 Space 3
 Rental Objects

Company Code Company Code

(Unitech Reality - 2100) (Omkar Relators - 2300)

Uniworld
Garden 2 Residences
Ascot (Dadar)
(Chembur)

Tower A Tower B
Block A Block B Tower A Tower B

Apartment 1 Apartment 2
Apartment 1 Apartment 2 Apartment 3
 Org Structure – REFX

Company
Unitech Group-UNIGRP

CompCode

CompCode
UDPL-2400

Comp Code
Unitech Hi Tec Limited-2000

Business Entity
Company Code
South City - 2
Unitech Limited-1000

Business Entity
Land/Building Rental Objects
 Business Partner

Definition

A Business Partner is a natural person, organization or a group in

which a company has a business interest.

A Business Partner can play different roles for a company, such as

Tenant, Customer, Channel Partner etc.

A Business Partner can be created in different Business Partner roles

across company codes, and during the course of the business
relationship the Business Partner can assume other Business Partner
roles.

Business Partner can be linked to customers or vendors, according to

their role. This should only be done, if the Business partner in his
capacity as of the specific role is expected to require posting.
Business Partner
ORGANIZATION STRUCTURE

Plant Maintenance
 Org Structure

Organization Structure SAP - PM

Company Code

Company Code Company Code

Planning plant

UPMPL Planning
UDPL Planning Plant
Plant
Maintenance plant

UPMPL Maintenance UDPL maintenance

Plant Plant
 Maintenance Plant

Maintenance plant
A Maintenance Plant is an organizational unit within Logistics, serving to
subdivide an enterprise according to procurement, maintenance and materials
planning.

In maintenance plant the operational / Production systems in a company are

installed.
These operational systems are managed either as functional locations or as
pieces of equipment.
 Maintenance Planning Plant

Maintenance planning plant

It represents the organizational unit where maintenance requirements for the
operations / production system are planned.
Maintenance planning plant is a plant in which maintenance tasks are planned
and prepared. Depending upon the structure of the Company there are three
options to represent the organization of the maintenance planning in a company.
Centralized Maintenance Planning.
Decentralized Maintenance Planning.
Partially centralized maintenance Planning.
In the PM planning plant, maintenance task lists are defined for the respective
maintenance plants, spare parts planning is carried out on the basis of bills of
material of the equipment, maintenance plans are managed and scheduled,
maintenance notifications are created and maintenance orders are handled.
Given the business requirements at Unitech, decentralized maintenance
planning with one maintenance plant assigned to one maintenance planning plant
will suit the producing assets business.
 Proposed Planning & Maintenance
Plant
Proposed Planning Plant and Maintenance plant for Unitech

Company Planning Plant Maintenance plant

UPMPL-3100 3100 3100

UDPL-3200 3200 3200

 Org Structure – PM

Company

CompCode

CompCode

Comp Code
UPDL-3200

Planning Plant
Company Code
3100
UPMPL-3100

Planning Plant Maintenance Plant

3100
Thank you