Enterprise Structure SAP SD Review Questions

CLIENT (Company)

A client is a self-contained technical unit. A client can be considered to be a synonym for group.

Company Code

  • A complete Accounting unit can be represented as the smallest organizational unit of external accounting.
  • At Company Code level we create
    • Balance sheet required by law
    • Profit and Loss statement.
  • Each company code represents an independent accounting unit. Several company codes can use the same chart of account.
Assignment
  • Company code to company
  • Company code to Credit control area
  • Company code to Controlling area
  • Company code to financial management area
(An FM Area is organizational unit which Plans, Controls and Monitors funds and commitment budgets)
  • Controlling area to financial management area
  • Controlling area to Operating Concern.
Sales Organization
  • The highest-level of organizational unit in SD is Sales Organization.
  • Responsible for Distributing goods and services, Negotiating sales conditions, Product liability and other customer rights of recourse.
  • Sales organization is also used to take for example a regional, national or international.
  • A sales organization assigned to a company code.
Distribution Channel
  • Distribution Channel represents strategies to distribute goods and services to customer.
  • DC is assigned to a sales organization. The assignment is not unique.
  • You can share Customer, Material and Condition master data by maintaining a reference/common DC.
Division
  • A Division is used to group material and services. A material can have only one Division.
  • We can make Customer- specific agreements for each Division, for example regarding partial deliveries or pricing within Division. (In CMIR)
  • You can share Customer and Condition master data by maintaining a reference/common Division.
  • A Division is assigned to a sales organization. The assignment is not unique.
  • You can use cross division to enter multiple materials with various divisions in a sales order.
  • You can choose division specific sales, it is controlled by customizing for sales document type.
Sales area
  • A Sales area is a combination of a Sales organization, DC and Division. It defines the Distribution channel of a Sales organization uses to sell products of certain Division
  • By defining and assigning Sales Organization, DC and division a Sales area not automatically formed, you have to set up a sales area.
  • A sales area can belong to only one company code. Assigning the sales organization to company code creates this relationship.
  • Each sales and distribution document is assigned to exactly one sales area. This assignment cannot be changed.
  • Various master data depending on the sales area, for example customer master data, material master data, price and discount. This system also carries out a number of checks concerning the validity of certain entries according to the sales Area.
  • Sales area assigned to Credit Control Area.
  • Sales office assigned to Sales Area
  • Sales group assigned to Sales office.
  • Employee of a sales office can be assigned to sales group.
Business area
  • The Business Area is a separate business unit for which internal reporting can be carried out. A company code may be divided into multiple business areas. A business area may also be shared by several company codes.
  • Business area is not limited by company codes. For this reason, the business areas in all company codes must have the same description. Using organizational unit is optional.
  • Business area can be used to prepare balance sheets and profit and loss statements not only for company code, but also for other internal areas (E.g., division-related).
  • The relevant business area is determined for each order item according to defined rule.
  • Rules for Business area determination
    • Business Area assignment by Plant and Item division.
    • Business Area assignment by sales area.
    • Business Area assignment by Sales Organization and D.C, Item Division
Plant
  • The Plant is a location where material is kept. Represent a production facilities or Material requirement planning in the System. In sales and Distribution, A Plant represents the location from which Materials and Services are distributed and corresponds to a distribution center. The relevant material stocks kept here.
  • A Plant assigned to a company code.
  • Inventory valuation is done either at company code level or Plant level, however the stock is managed at Storage location level.
  • A Delivering plant assigned to Combination of Sales organization and Distribution channel.
  • Delivering Plant Determination in sales Document according to following step
    • 1. CMIR
    • 2. Customer Master-Ship to Party (Sales area- shipping tab page)
    • 3. Material Master- Sales Org. 1 View.
  • CMIR has precedence over customer and material master.
  • A plant is essential to determine the Shipping Point.
  • In absence of a Delivering plant determination there can be no automatic determining of shipping point or automatic tax determination, no availability check can be carried out and no outbound delivery can be set up.
Shipping Point
  • Shipping Point highest organizational unit in Shipping. A shipping point is under client level.
  • A shipping point assigned to a Plant. A Shipping point can be assigned to multiple plants. Various Shipping point can be assigned to same plant.
  • The Shipping point can be a loading ramp, a mail depot or a rail depot. It can also be a group of employees responsible only for organizing urgent deliveries.
  • The shipping point is responsible for processing shipping. Each Outbound Delivery is processed by exactly one shipping point.
  • The shipping point is normally determined automatically (At item level) for each item in the sales document. The automatic default value can be later changed manually in sales order if we have planned for a different shipping point. We can change shipping point in delivery document only at initial create screen before saving the delivery document.
  • Shipping point determination based on these combinations.
    • Delivering Plant
    • Shipping condition- Sales document type OR  Customer master data-Sold to Party (Shipping Tab Page)
    • Loading group-Material master data (Sales: Gen/plant)
    • Shipping condition from sales document type has precedence over that from customer master.
Warehouse
  • Warehouse having following organizational units for efficient processing of goods receipt and goods issue.
    • Warehouse Number: The entire warehouse structure is managed under one warehouse Number. This number represents the warehouse complex.
    • Warehouse Number assigned to a combination of Plant and storage location.
    • You can group Transfer Order based on warehouse number.
    • Storage Type: The different warehouse areas, which differ with respect to their organizational and technical features, are defined as storage types (for example-high-rack warehouse with random storage, picking warehouse with fixed bins, or shipping area).
  • Picking area: Below the storage Type level, The Picking area group together storage bins from a picking point of view.
    • A delivery can be split up into different picking areas to make parallel picking possible.
    • Staging area: The staging area is a part of the warehouse where goods are stored immediately after unloading or shortly before loading.
    • Door: A Door can be used for both the inbound and outbound delivery of goods.
(Door determination takes place at the delivery header level. Staging area determination can take place at the delivery header level and item level. Different staging area at the delivery item level lead to a transfer order split because the staging area is a header level in the Transfer Order.)
  • The connection of the organizational unit in the warehouse to MM Inventory Management results from The Assignment of warehouse No. To a combination of  plant and storage location.
  • You can Group Transfer order based on the warehouse number.

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Sales Order Management Multiple Choice Self-Review Questions

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