Organizational Structure (Main Notes)

1)      Client is the highest Organizational unit in the SAP structure?

2)      All general data and tables that are used for different organizational structure are stored at the client level.

3)      Sales Organization is the highest Organizational unit in SAP S&D?

4)      Company code is the highest Organizational unit in SAP FI Module?

5)      Plant is the highest Organizational unit in SAP PP?

6)      A Sales area consists of: A Sales Organization, a Distribution Channel and a Division.

7)      A distribution chain consists of: A sales organization and a distribution channel

8)      Business areas and Company codes are used to represent a group from Financial Accounting viewpoint.

9)      A company code is a legal entity and an independent accounting unit which responsible for the creation of all the legally required documents such as Balance sheet and profit and Loss statement.

10)  You can assign any number of company codes to a Client, but one company code can be assigned to only one client.

11)  Every company code in SAP uses general ledger accounts exactly from one chart of accounts.

12)  One company code can be assigned to exactly one credit control area. But any number of company codes can be assigned to the same credit control area.

13)  One company code can have any number of business areas.

14)  Business areas are meant for internal reporting purposes and defining a business area is optional.

15)  Organizational units available for modeling the sales business area include:

Ø  Sales area

Ø  Sales organization

Ø  Distribution channel

Ø  Division

Ø  Sales Office

Ø  Sales Group

16)  The optional organizational units in Sales and Distribution are sales office and sales group.

17)  organizational units that represents SD processes include:

Ø  Company code

Ø  Sales area - Combination of Sales organization, Distribution channel and Division.

Ø  Sales Office

Ø  Sales Group

Ø  Sales Person

Ø  Plant and Storage Location

Ø  Shipping point

18)  The mandatory organizational units in sales and distribution are: sales area, sale organization, distribution channel, division, shipping point and plant and storage location.

19)  More than one sales organization can be assigned to a company code. But one sales organization is uniquely assigned to a company code.

20)  A sales organization can have any number of distribution channel assigned to it.

21)  Any number divisions can be assigned to a sales organization.

22)  Organizational units that represent only sales and distribution include:

Ø  Sales Area

Ø  Sales organization

Ø  Distribution channel

Ø  Division or

Ø  Shipping point

23)  Each sales organization can have its own master data.

24)  Sales organization is liable for the goods sold and the customer’s rights of recourse.

25)  All sales and distribution documents are assigned to exactly one company code. A sales area will be appear in all sales and distribution documents.

26)  The sales organization must be assigned to a company code. This relationship will create a link between SD and FI.

27)  The link assignment between sales organization and plant will create a link between S & D and MM.

28)  A plant is uniquely assigned to a company code.

29)  The plant is assigned to a sales organization based on the distribution channel.

30)  One plant can be assigned to several distribution chains as the delivering plant.

31)  A sales organization can assign to several plants.

32)  You can also assign a plant to a distribution chain that is assigned to a different company code.

33)  A sales office can be assigned to multiple sales areas and a sales area can have multiple sales offices assigned to it.

34)  Sales group is assigned to a sales office

35)  A sales person is assigned to a sales office and group in the sales employee master record.

36)  A Shipping point represents the highest-level organizational unit that control your shipping (delivery) activities.

37)  An outbound delivery document is processed exactly in one shipping point.

38)  More than one shipping point can be assigned to a plant.

39)  More than one plant can be assigned to a shipping point if all the plants are situated in a general proximity.

40)  Each shipping point can have multiple loading points assigned to it.

41)  A business area can be defined according to:

Ø  Sales area

Ø  Plant and item division

Ø  Sales organization, distribution channel and item division

42)  Every sales office can have its own currency.

43)  A division is defined at the client level.

44)  A business area can be valid for different company codes.