CLIENT (Company)
A client is a self-contained technical
unit. A client can be considered to be a synonym for group.
Company Code
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A complete Accounting unit can be represented
as the smallest organizational unit of external accounting.
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At Company
Code level we create
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Balance sheet required by law
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Profit and Loss statement.
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Each company code represents an independent
accounting unit. Several company codes can use the same chart of account.
Assignment
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Company code to company
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Company code to Credit control area
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Company code to Controlling area
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Company code to financial management
area
(An FM Area is organizational unit
which Plans, Controls and Monitors funds and commitment budgets)
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Controlling area to financial management
area
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Controlling area to Operating Concern.
Sales Organization
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The highest-level of organizational
unit in SD is Sales Organization.
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Responsible for Distributing goods
and services, Negotiating sales conditions, Product liability and other
customer rights of recourse.
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Sales organization is also used to
take for example a regional, national or international.
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A sales organization assigned to a
company code.
Distribution Channel
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Distribution Channel represents strategies
to distribute goods and services to customer.
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DC is assigned to a sales organization.
The assignment is not unique.
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You can share Customer, Material and
Condition master data by maintaining a reference/common DC.
Division
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A Division is used to group material
and services. A material can have only one Division.
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We can make Customer- specific agreements
for each Division, for example regarding partial deliveries or pricing
within Division. (In CMIR)
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You can share Customer and Condition
master data by maintaining a reference/common Division.
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A Division is assigned to a sales organization.
The assignment is not unique.
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You can use cross division to enter
multiple materials with various divisions in a sales order.
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You can choose division specific sales,
it is controlled by customizing for sales document type.
Sales area
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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
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By defining and assigning Sales Organization,
DC and division a Sales area not automatically formed, you have to set
up a sales area.
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A sales area can belong to only one
company code. Assigning the sales organization to company code creates
this relationship.
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Each sales and distribution document
is assigned to exactly one sales area. This assignment cannot be changed.
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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.
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Sales area assigned to Credit Control
Area.
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Sales office assigned to Sales Area
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Sales group assigned to Sales office.
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Employee of a sales office can be assigned
to sales group.
Business area
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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.
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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.
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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).
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The relevant business area is determined
for each order item according to defined rule.
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Rules for Business area determination
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Business Area assignment by Plant and
Item division.
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Business Area assignment by sales area.
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Business Area assignment by Sales Organization
and D.C, Item Division
Plant
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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.
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A Plant assigned to a company code.
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Inventory valuation is done either
at company code level or Plant level, however the stock is managed at Storage
location level.
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A Delivering plant assigned to Combination
of Sales organization and Distribution channel.
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Delivering Plant Determination in sales
Document according to following step
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1. CMIR
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2. Customer Master-Ship to Party (Sales
area- shipping tab page)
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3. Material Master- Sales Org. 1 View.
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CMIR has precedence over customer and
material master.
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A plant is essential to determine the
Shipping Point.
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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
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Shipping
Point highest organizational unit in Shipping.
A shipping point is under client level.
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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.
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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.
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The shipping point is responsible for
processing shipping. Each Outbound Delivery is processed by exactly one
shipping point.
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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.
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Shipping point determination based
on these combinations.
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Delivering Plant
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Shipping condition- Sales document
type OR Customer master data-Sold to Party (Shipping Tab Page)
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Loading group-Material master data
(Sales: Gen/plant)
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Shipping condition from sales document
type has precedence over that from customer master.
Warehouse
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Warehouse
having following organizational units for efficient processing of goods
receipt and goods issue.
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Warehouse Number: The entire warehouse
structure is managed under one warehouse Number. This number represents
the warehouse complex.
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Warehouse Number assigned to a combination
of Plant and storage location.
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You can group Transfer Order based
on warehouse number.
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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).
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Picking area: Below the storage Type
level, The Picking area group together storage bins from a picking point
of view.
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A delivery can be split up into different
picking areas to make parallel picking possible.
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Staging area: The staging area is a
part of the warehouse where goods are stored immediately after unloading
or shortly before loading.
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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.)
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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.
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You can Group Transfer order based
on the warehouse number.
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