Skip to Content
avatar image
Former Member

Question About Enterprise Structure

Dears,

I am confusing about Enterprise Structure how to structure it

my example 1:

my company SSS has sister companies A,B,C

Company A for Sales

Company B for IT

Company C for Merchandising

Company has many branches in many countries also in each country has many branches.

we can say some countries we have factories and warehouses.

my question how we can structure this example.

example 2:

our company has many branches only in one country means not global company.

we have many factories and warehouse

how we can structure this example

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

8 Answers

  • Best Answer
    avatar image
    Former Member
    Nov 07, 2009 at 12:05 PM

    in sales orgnization

    has many section

    one for key account, the for non key account

    what do we consider this, do we consider it as Distribution or what can you help me please?

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi,

      IF you are talking about customer segregation as Key account and non key account. Then while creating customer master you can enter value for Customer group in Sales Area View in Sales Tab as Key a/c and non key a/c.

      In spro you can maintain value for the customer group (OVS9)

      Distribution channel is the way goods and services reach to the customer eg. Direct sales, Sales through supplier, Tender

      Hope it helps you

      By the can you elaborate the scenario in detail so that all of us can guide you properly. Information in pieces doesnt give clear picture

      regards,

      Sagar

  • avatar image
    Former Member
    Nov 07, 2009 at 09:45 AM

    Hi

    You may define SSS as your Company/Client/Group of companies.

    Under SSS, you can define A, B , C as three different Company codes, if they prepare P/L and Balance sheet individually.

    Different branches in different countries should also be defined as separate Company codes. These individual companies will follow the law of the land where they are operating and will prepare their P/L & Blanace sheet individually.

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Nov 07, 2009 at 09:53 AM

    thank you for your replay

    what i understand

    SSS will be client or mother company

    A,B,C will be sis companies

    the sales branches in the same country for company A should we consider it as sales orgnization or sales office

    what is diff between between sales org and office by clear example..

    IF Company A has global branches in other countries

    should i consider the branch as company...

    thanx.

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi,

      Sales organization is the highest organizational unit in SD through which goods and services are sold to customer. Also, it is responsible for pricing negotiation and customers right of recourse. But it is advisable to have lesser SO. Mainly they are created zone wise for example East, West, North and South (India). Too many SO will complicate the enterprise structure later on.

      You can create number sales offices as you want. Sales office is also an org. unit which is nothing but sales office located in different territory and responible for sales in those territories. Sales office is assigned to Sales Area (SO + Dstr. Channel + Div.)

      And

      What is the role of branches of company A which are in other countries ?

      If they are completely different independent legal entities and separate profit and loss account and balance sheet are prepared then you can define them as separate companies and assign them to SSS group of companies

      Hope it helps you

      regards,

      Sagar

  • avatar image
    Former Member
    Nov 07, 2009 at 10:16 AM

    > my example 1:

    > my company SSS has sister companies A,B,C

    > Company A for Sales

    > Company B for IT

    > Company C for Merchandising

    > Company has many branches in many countries also in each country has many branches.

    > we can say some countries we have factories and warehouses.

    You can assign all these companies to SSS (client) based on few factors like

    - whether balance sheet is same for all the companies

    - whether all these companies produce material related to one finished material e.g. Tata steel produces steel and sells to Tata motors also.

    - In short all these companies are aligned to achieve same goal

    Now, if A, B and C are like these companies then assign them to SSS (consider SSS as group of companies eg. Tata group)

    Based on the functioning of the factories and companies you can assing plants to company

    eg. There is separate company for Tata steel that produces steel so you will assing all the plants that manufacture steel to Tata steel company

    Finally warehouse is assigned to the combination of Plant and Storage location

    > our company has many branches only in one country means not global company.

    > we have many factories and warehouse

    > how we can structure this example

    Again as explained above assign all the companies to one client based on the factors mentioned above

    Hope it helps

    regards,

    Sagar

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Nov 07, 2009 at 10:20 AM

    thanx for reply

    can you answer my last question

    also i need to know the diff between sales org and sales office?

    Thanx

    Sorry I am just beginner in SAP

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Nov 23, 2009 at 07:54 AM

    I am trying to understand somthing

    why some ppl assign the division to distribution sometimes no?

    do you consider the storage location as warehouse? if it is yes that means i need to assign the warehouse to the factory!!!.

    and this is not logic.

    one day i was reading about sales orgnization i found this note but i did not understand it

    can you describe it to me please

    "Division is always sales organization specific.

    If sales organization wants to use a plant that plant must be assigned to sales organization"

    thanx

    Edited by: doggpound on Nov 23, 2009 8:54 AM

    Edited by: doggpound on Nov 23, 2009 8:56 AM

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member Former Member

      > what does plant mean?

      > factory,warehouse

      Dear friend,

      Most of the time from SD point of view plant, warehouse, factory or godown are termed as one entity.

      But while mapping in SAP, plant is considered as Delivery Plant (SD)from which materials are despatched.

      And from MM point of view it is considered as Manufacturing plant

      Storage location is just a grouping of different materials stored in plant,

      I.e. in a plant you can store finished goods as well as semi finished goods. So, by this logic we can have two storage locations one for finished goods - FG and other for semi finished goods - SFG

      Storage location is always assigned to the plant.

      Warehouse is used for Warehouse management system. That includes detailing of warehouse management like fixed bin rack, storage type, staging area etc.

      Warehouse number is assigned to the combination of Plant and storage location. But as per my knowledge it is not mandatory to define unless there is WMS in place.

      Hope now it is clear

      Sagar

  • avatar image
    Former Member
    Nov 23, 2009 at 01:03 PM

    thank you very much sagar

    it was very helpful answer.

    thanx

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Nov 24, 2009 at 06:45 AM

    yesterday i defined Sales Org, i noted there are not mandatory fields for example plant storage location..

    in other place i should assign the Sales org with plant..

    can you tell what is diff between two please?

    other question in defining the sales org there is check box is called "Rebate" i did not get it

    what does it mean? and what is the advantage for it ?

    thanx

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      HI,

      That data is related to purchase order....i think you would come to know better from MM consultant.

      That check box is related to rebate processing which is nothing but discount given to customer for the sales generated during particular period. When you want to give rebate to customer you need to activate the rebate indicator at three places i..e At Sales organization level that you saw, second in paymer master data and third in billing document in VOFA

      Request you to search the thread first....only if u dont get it, then post a new one

      regards.

      Sagar