SAP SD | Configuration & definition of Enterprise structure | Enterprise Structure | Part 1
Summary
TLDRThis video lecture from AIA World focuses on setting up the Enterprise structure in the SCP ERP system's Sales and Distribution module. It covers key building blocks like sales organizations, distribution channels, market divisions, sales areas, and plants. The lecture guides viewers through defining and assigning these elements, emphasizing their importance in sales and accounting processes. It also highlights dependencies with financial accounting and materials management, ensuring a comprehensive understanding of the ERP system's organizational setup.
Takeaways
- 😀 The lecture focuses on setting up the Enterprise structure in the Sales and Distribution (SD) module of the SCP ERP system.
- 🔍 The Enterprise structure in SCP's SD application is crucial for mapping the organizational structure of a business entity involved in selling and distributing goods and services.
- 🏢 The building blocks for setting up this structure include sales organizations, distribution channels, market divisions, sales areas, sales offices, sales groups, sales districts, and plant assignments.
- 🌐 Sales organizations represent the selling entity and are the highest level in the SD Enterprise structure.
- 📈 Distribution channels represent the various methods used by the enterprise to distribute goods to the market, such as wholesale, retail, or internet sales.
- 📊 Market divisions are used to represent different product divisions within the organization, helping to group similar products or product lines.
- 📍 Sales areas define the relationship among the selling entity, distribution channels, and sales offices, and are crucial for determining shipping and billing structures.
- 🏭 The plant is a key organizational element for setting up storage locations, shipping points, and is linked to the sales organization and distribution channel for distribution of goods.
- 🔗 The Enterprise structure setup in SCP's SD module is interconnected with financial accounting and materials management, impacting the use of materials and accounting postings of sales transactions.
- 🛠️ The process of setting up an Enterprise structure begins with defining a sales organization, which includes assigning a technical name, statistical currency, and other customizations.
- 🔑 The script provides a step-by-step guide on how to define and assign sales organizations, distribution channels, and divisions within the SCP ERP system.
Q & A
What does the Enterprise structure in SCP's SD application represent?
-The Enterprise structure in SCP's SD application represents the organizational structure within a business entity that is involved in selling and distributing goods and services.
What is the significance of sales organization in the SCP ERP system?
-A sales organization in SCP ERP is crucial as it represents the selling entity of a client organization. It is the highest level in the SD Enterprise structure and to which all other building blocks are assigned.
How does one define a sales organization in SCP ERP?
-To define a sales organization in SCP ERP, one must use the transaction code SERO, navigate through the IMG to Enterprise Structure > Definition > Sales and Distribution, and then choose to define or copy a sales organization.
What is the purpose of a distribution channel in the SCP ERP system?
-A distribution channel in SCP ERP represents the various channels used by an enterprise to distribute goods to the market, such as wholesale, retail, or internet sales.
How are distribution channels assigned to sales organizations in SCP ERP?
-Distribution channels are assigned to sales organizations in SCP ERP by navigating to the Enterprise Structure Assignment in the IMG, then selecting Sales and Distribution, and finally choosing to assign a distribution channel to a sales organization.
What is a market division in the context of SCP ERP's sales and distribution module?
-A market division in SCP ERP's sales and distribution module is used to represent various product divisions within an organization, which helps in grouping similar products or product lines.
Why is it important to assign a sales organization to a company code in SCP ERP?
-Assigning a sales organization to a company code in SCP ERP is important to ensure that the accounting entities resulting from sales transactions are correctly posted to the accounting system.
What is the role of a sales area in the SCP ERP system?
-In the SCP ERP system, a sales area is used to define the relationship among the selling entity, channels, and distribution, and it is one of the rules used by SCP to determine the sales area.
How does the SCP ERP system handle the dependencies between the sales and distribution module and other modules?
-The SCP ERP system handles dependencies between the sales and distribution module and other modules by ensuring that the Enterprise structure is set up in a way that impacts the use of materials in the SD application as well as the accounting postings of sales transactions.
What is the process of setting up a plant in the SCP ERP system in relation to the sales and distribution module?
-Setting up a plant in the SCP ERP system involves defining the geographical location and the organizational element for the plant. The plant is then assigned to the combination of the sales organization and distribution channel, which controls the storage and shipping of goods.
Why is it recommended to keep the number of sales organizations to a minimum in SCP ERP?
-It is recommended to keep the number of sales organizations to a minimum in SCP ERP to simplify the organizational structure and reduce complexity, unless there is a legal requirement or a completely different operational basis that necessitates multiple sales organizations.
Outlines
📚 Introduction to Enterprise Structure in SCP ERP
The lecture introduces the concept of Enterprise structure within the sales and distribution module of the SCP ERP system. It explains how the organizational structure of a business entity that sells and distributes goods and services is mapped into the SCP ERP software. The lecture discusses the building blocks available in SCP for setting up this structure, including sales organizations, distribution channels, market divisions, sales areas, sales offices, sales groups, sales districts, and plants. It also highlights the importance of integrating this structure with financial accounting and materials management modules, and the necessity of working with financial consultants to ensure proper setup.
🔍 Setting Up Sales Organization in SCP
This section details the process of setting up a sales organization in SCP, which represents the selling entity of a client organization. It is the highest level in the sales and distribution structure. The guide explains how to use transaction code SERO to define a new sales organization, including entering a technical name, description, statistical currency, and text modules for various outputs like invoices and confirmations. It also covers how to assign a sales organization to a company code and the importance of keeping the number of sales organizations to a minimum.
🏢 Assigning Sales Organization to Company Code
The paragraph explains how to assign a newly defined sales organization to a company code within the SCP system. It outlines the steps to access the customization screen, navigate to the Enterprise structure assignment, and select the sales organization to be linked to a specific company code. The process involves entering the company code and saving the data to establish the connection between the sales organization and the company code.
🚚 Configuring Distribution Channels
This part of the lecture focuses on configuring distribution channels, which represent the methods by which goods are distributed to the market. It describes a two-step process involving creating the distribution channel and then assigning it to a sales organization. The guide provides instructions on how to define new distribution channels using transaction code, assign names, and ensure unique identifiers. It also explains how to assign these channels to a sales organization using the SCP reference IMG.
📈 Creating and Assigning Divisions
The lecture continues with the creation and assignment of divisions, which group similar products or product lines within the organization. It outlines the process of defining divisions by entering a unique identifier and a descriptive name. The guide then explains how to assign these divisions to a sales organization, which is crucial for determining the sales area in SCP. The process involves entering the sales organization and the division codes to establish the assignment.
🔄 Continuing Organizational Structure Configuration
The final paragraph summarizes the steps taken so far in configuring the organizational structure within the SCP system. It mentions that the next steps will involve further building of the organizational structure in the SCP ERP system. The lecture concludes by thanking viewers for watching and indicates that additional lectures will continue to explore the setup process.
Mindmap
Keywords
💡Enterprise structure
💡SCP ERP system
💡Sales organization
💡Distribution channel
💡Market divisions
💡Sales area
💡Company code
💡Plant
💡Text modules
💡Rebate processing
💡Customization
Highlights
Enterprise structure in SCP's SD application represents the organizational structure within a business entity for sales and distribution.
SCP offers building blocks to map organizational structure into the SCP ERP software.
Sales organization in SCP represents the selling entity and is the highest level in the SD Enterprise structure.
Distribution channels represent various channels used by the Enterprise to distribute goods.
Market divisions represent various product divisions within the organization.
Sales areas define the relationship among selling entities, channels, and distribution.
Sales offices, groups, and districts represent geographical locations for sales operations.
Plants and storage locations are used to set up the distribution structure for goods storage and shipping.
Sales organization and plant are assigned to the company code for accounting purposes.
Dependencies with financial accounting and materials management modules are crucial for the Enterprise structure setup.
Company code represents the organization's legal entity, and child of accounts is used for posting sales transactions.
Fiscal year represents the financial reporting year for the company code.
Setting up an Enterprise structure is foundational for SAP implementation.
The first step in setting up a sales structure is to set up a sales organization.
It is advisable to keep the number of sales organizations to a minimum.
Sales organizations can be assigned to company codes that correspond to countries where the organization operates.
The process to define a sales organization involves entering transaction code SERO and following the IMG path.
Text modules can be customized for sales organizations to carry information for various outputs like invoices.
Address data and other details must be entered for each sales organization.
Once defined, sales organizations must be assigned to a company code.
Distribution channels are configured in a two-step process: creation and assignment to a sales organization.
Divisions are configured similarly to distribution channels and represent product divisions within the organization.
The configuration of divisions involves defining them and then assigning them to a sales organization.
Transcripts
hello everyone and thank you for
watching AIA World
videos it will be our second lecture
Enterprise structure in sales and
distribution module in SCP Erp
system Enterprise structure in scp's SD
application represents the
organizational structure within the
business entity that is selling and
distributing goods and
services to help us map this
organizational structure into the SCP
Earp software SCP offers a set of
building blocks in this lecture we will
discuss these building blocks and how to
arrange them to set up the this
Enterprise
structure now take a closer look to SCP
sales and distribution organizational
structure we can use sales
organization to replicate the selling
entity into into the sap
system we can use distribution channels
to represent various channels being used
by the Enterprise to distribute Goods to
Market divisions we can use to represent
various product divisions that exist in
the
organization sales areas we used to
define the relationship among selling
entity channels and of
distribution sales offices sales groups
sales districts we Ed to represent the
geographical
locations the organizational element for
setting up a plant and the pled
assignments to other organizational
elements such as stor stor location
shipping receiving point and loing point
help us set up the distribution
structure this structure defines where
and how the goods will be stored and how
they will be shipped to the
customers both the sales organization
and the plant are assigned to the
company code so that the accounting
entities resulting from the sale of
goods and
services as well as those result from
the material movements in the plant and
all of them are posted to the
accounting finally the plant is assigned
to the combination of the sales
organization and distribution Channel
allowing the sales organization to use
the assigned plan structure when
Distributing goods and services to the
customers and completing the typical ENT
structure setup in ISD
application ENT structure in
scsd does not exist in
isolation it has dependencies with
Enterprise structures from other modules
too dependencies with financial
accounting and materials management
Enterprise structure is of fital
importance because it impacts the use of
materials in the SD application as well
as the accounting postings of the sales
transactions before we set up ISD
structure
we always must work with
SVP financial accounting and controlling
consultant to make sure that the company
code chart of accounts thisal year and
other Enterprise structure
customizations related to financial
accounting are already set up in the
system a company code represents your
organizations legal entity a child of
accounts represents the ler
accounts that will be will use to post
the sales transactions into accounting
and fiscal year represents the financial
reporting year for our company
code setting up an Enterprise structure
is the foundation of our sap
implementation the first step in setting
up a sales structure is to set up a
sales
organization a sales organization in SCP
represents the selling entity of our
client
organization it is the highest level in
the SD Enterprise structure and the one
to which all the other building blocks
are
assigned it is always advisable to keep
the number of sales organizations to a
minimum we should only create multiple
sales organization when two or more
selling entities operate on a totally
different
basis or when there is a legal
requirement to have multiple sales
organizations for example an
organization running sales operations
from multiple
countries may end up having one sales
organization for each country where it
operates each of these sales
organizations will then be assign
assigned to the company codes that were
set up for those
countries now we will try to Define our
sales
organization first we must go to the
implementation
guide add the common
Line enter transaction
code s e r o and press
enter
click on SCP reference
IMG follow
menu Enterprise
structure
definition sales and
distribution
click on Define copy delete check sales
organization now we will see two options
First
Option Define sales
organization if we make this
selection we will set up a new sales
organization without coping it from any
existing
one we will have to manually enter all
the required information to Define our
own our own sales
organization if you choose copy delete
check sales
organization we will copy all uh
required information from the existing
sales
organization
we can put a technical name
test and description for our sales
organization will be
test
sales
organization next field is statistics
currency here you set the defold
statistical currency for your sales
organization when you generate sales
statistics the system uses this currency
to reparate the
statistics because it is a default this
currency can be overwritting during
statistical
reporting here we can put
currency United States
dollars next part is content for form
text
modules it includes five
Fields address text
[Music]
name letter header
text Food Alliance
text greeting text
name text SDS
sender these are the five Fields
available in Sal organization
customization where you assign the text
modules that carry information to be
printed on the right various outputs
such as invoices AUD confirmations and
so on you first create and maintain the
text module using transaction s
o10 and then assign this uh text module
to our sales
organization work with the S10
transaction we will teach you in next
lectures
now we will enter our text
modules address text
name
Logo fature
lines greeting
text always create your own text modules
with the prefix y or Z this way your
text modules will not be overw writen by
SCP when you apply some software Pates
or perform and release
upgrade of your SCP
system next field is reference sales
organization document type this field is
set up for reference between two sales
organizations that share a common sales
document type
assignment if you created your sales
organization by copying from an existing
sales
organization this field will
automatically get populated with the
source sales organization number from
which you C
it next field customer in company
billing here you enter the inter company
customer number for your sales
organization for now we will leave this
field
blank next field sales organization
calender here you enter the factory
calendar for your sales
organization
a factory calendar in scsd defines the
working and nonworking days for our
planned Factory country setup and
controls the shipping and building
activities for now we
enter sales calendar for United States
us next field is rebate proactive
activity
activating a rebate at the sales
organization level is one of the
practies for rebate processing in
SCP if we select this check box then we
want to activate rebate processing for
our sales
organization we will talk in detail
about rebate activities in next
lectures after we enter all these
necessary
parameters
we can go to the address data press
address
button press okay just
warning put name for our sales
organization
test
sales
organization put Street and house number
Main
Street house
number
one postal
code country United
States and
region just for example we will take
California
region
we can enter all other data about for
now it will be enough for us for our
test sales
organization and press copy
enter and now we can save our sa
organization press save
button again press okay
and we have the
message data was
saved this means that we have
successfully defined our first sales
organization and we can come
back our SCP easy access
screen
once a sales organization has been
defined the next step in it setup is to
assign the sales organization to a
company
code we can do it from our customization
screen code
transaction
o press
enter press on SCP reference IMG
go to Enterprise
structure
assignment sales and
distribution and click on assign sales
organization to company
code here we can see the list of all all
sales organizations in the
system now we can find our sales
organization we can press
position and enter name of our new sales
organization test sales
organization and press
continue here we see our sales
gation and we see that company code is
blank to assign this sales organization
to some company code we must enter the
company
code name for example p
0
080 and press
enter and now we will be signing our
sales organization test to company code
p080 and press
save data was
saved and now we can return to our SCP
ezx screen
Next Step we'll be configuring a
distribution
Channel a distribution Channel presents
the way you distribute your goods into
the
market it may be wholesale retail
internet sales and many
others configuring a distribution
channel is two step activity the first
step is to create the distribution
Channel and the second step is to assign
the distribution channel to a sales
organization by assigning distribution
channels to a sales organization you set
up a small structure that controls the
methods of distribution that a sales
organization can use to supply goods and
services to its customers distribution
channels are available across the sales
organizations this means that you can
assign the same distribution channel to
multiple sales
organizations
now we will Define our distribution
channels again go to
transaction go to SCP reference
IMG go to Enterprise
structure
definition sales and
distribution Define copy delete check
distribution
Channel press Define distribution
Channel and press new
entries here we can see two Fields
distribution Channel and name first one
distribution
channel here you enter a two character
identifier key for your distribution
channel for example I
N name here you enter a meaningful
description for your distribution
channel the description can be a maximum
of 20 characters long for example in
turn it
sales next one will be r e it will
be
retail
sales now we create two distribution
channels and
now we can press save
button
we have a warning message that an entry
already exists with the same
key this key must be unique so we can
change it for Unique number like it and
press
enter okay R is the
same it's already
exist so we change it
ER after that press
save we have the message data already
saved we can copy these two technical
names so after that we can easily assign
them to the sales
organization press on your keyboard
control+
Y and select two
entries and copy contrl +
C we copy names of the distribution
channels we can exit to the SCP easy
access
screen and we can start our next
step Next Step will be assigning a
distribution channels to our new sales
organization we follow customization
guide SCP reference
IMG Enterprise
structure
assignment sales and
distribution and press assign
distribution channel to sales
organization press new
entries and in sales
organization we enter our technical name
of sales organization test
we will have two entries because we
create two distribution channels so
press test
again
and on distribution
Channel we can insert our two coped
distribution Channel technical names
control BL plus
we it and e
r are our distribution channels
press
enter we can see that now we have
assignment of our distribution channels
to our sales
organization
test and press
save we can see the data was
successfully
saved so we have success
assign distribution channels to our
sales
organization after that we can we can
return to our SCP EAS access
screen and we can move forward for the
next
step configuring a
division a division is NP refers to the
product division that exist in our
organization
simply it is a way to group similar
products or product lines in
sap when you create a material Master
record in a CP you create it for a
particular division a division is also
one of the rules used by SCP to
determine the sales area which we will
discuss later in next
lectures configuring a division is also
like configuring a distribution channel
is a twostep activity
check
division press on Define division double
click here we can see the list of all
divisions in the
system and we can create the new
divisions by pressing new
entries the fields on the displayed you
screen uh
Division and
name we can Define our division by
filling in these two
Fields division here you can enter a
twod digigit numeric or alha numeric
identifier key for our product
Division and in field
name we can enter a description for our
product division the description can be
maximum of 20 characters
long
division we can input like
50 and name will
be
computers and second division will be
51
like
t-shirts so we create two divisions one
for
computers and one for
t-shirts now we can press save
button data was
saved we can return to the customization
guide okay and Next Step will be
assigning a division to a sales
organization go to Enterprise price
structure
assignment sales and
distribution assign division to sales
organization press new
entries and enter
our sales organization
we have two
divisions so we enter test and test and
first division 50 and second 51 press
enter we will see that we can Define we
can assign computers division to test
sales
organization and t-shirts division to
test St oranization
now we can
save our
changes data was
saved we have successfully assigned
division to a sales
organization now we can return to the
SCP EAS ex
screen
we will continue in next
lectures to build our organizational
structure in the
C and for now thank you for watching
edupedia World videos
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