SAP SD | Configuration & definition of Enterprise structure | Enterprise Structure | Part 1

Summary

This 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

00:00

📚 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.

05:03

🔍 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.

10:04

🏢 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.

15:07

🚚 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.

20:09

📈 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.

25:58

🔄 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.

Keywords

💡Enterprise structure

Enterprise structure refers to the organizational framework within a business entity that handles the selling and distributing of goods and services. In the context of the video, it is crucial for mapping the company's operational divisions and their interrelationships within the SCP ERP system. The script discusses how to set up this structure using various building blocks like sales organizations, distribution channels, and market divisions.

💡SCP ERP system

SCP ERP, or SAP Customer Product, is an enterprise resource planning software system that integrates various business processes into a unified system. The video focuses on how to configure the Enterprise structure within this system to manage sales and distribution effectively. The ERP system allows for better organization and automation of business operations, as demonstrated by the setup process described in the script.

💡Sales organization

A sales organization is a key component of the Enterprise structure in the SCP ERP system, representing the selling entity of a client organization. It is the highest level in the sales and distribution structure and to which all other building blocks are assigned. The script provides a step-by-step guide on defining a sales organization, including setting a statistical currency and assigning it to a company code.

💡Distribution channel

Distribution channels in the video script represent the various methods a company uses to distribute goods to the market, such as wholesale, retail, or internet sales. The script explains the process of creating and assigning distribution channels to sales organizations within the SCP ERP system, which helps control the methods of distribution and how goods are supplied to customers.

💡Market divisions

Market divisions are used to represent various product divisions within an organization. They are a way to group similar products or product lines in the SCP ERP system. The script describes how to configure market divisions and assign them to sales organizations, which is essential for organizing product lines and managing sales operations effectively.

💡Sales area

Sales areas are used to define the relationship among selling entities, channels, and distribution. They are part of the organizational structure that helps in defining geographical locations and the organizational elements for setting up plants and their assignments to other organizational elements. The video script touches on how sales areas are integral to the overall Enterprise structure setup in the SCP ERP system.

💡Company code

A company code in the SCP ERP system represents a legal entity within an organization. It is a crucial element in the Enterprise structure as it is used for accounting purposes, ensuring that all transactions and material movements are correctly posted to the accounting system. The script emphasizes the importance of assigning sales organizations and plants to company codes for accurate financial reporting.

💡Plant

In the context of the video, a plant refers to a location where goods are produced or stored. It is an essential part of the distribution structure within the SCP ERP system, defining where goods will be stored and how they will be shipped to customers. The script explains how plants are assigned to sales organizations and distribution channels, which is vital for managing inventory and logistics.

💡Text modules

Text modules in the SCP ERP system are customizable fields that carry information to be printed on various outputs such as invoices, order confirmations, and other documents. The script describes how to create and assign text modules to a sales organization, which allows for the customization of printed documents according to the organization's needs.

💡Rebate processing

Rebate processing is mentioned in the script as one of the practices for managing discounts or incentives in the SCP ERP system. Activating rebate processing at the sales organization level allows for the management of rebates and discounts on sales transactions. The video script provides an example of how to activate this feature within the Enterprise structure setup.

💡Customization

Customization in the SCP ERP system refers to the process of tailoring the system to meet specific business requirements. The script provides detailed steps on how to customize various elements of the Enterprise structure, such as sales organizations, distribution channels, and market divisions, to align with the unique needs of the organization.

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