SAP – Customizing Guide
Further information
You will find information on the organizational structures in the manual "SD - Basic Functions and Master
Data".
Note
The organizational units sales organization, distribution channel and division are necessary prerequisites for
processing sales transactions (for example, quotations or orders).
Shipping points are absolutely necessary for processing deliveries.
The other organizational units (for example sales offices) are not absolutely necessary. Clarify whether and
in which form you want to use these elements in your company.
You do not need to set further defaults if you also use the modules FI and MM in addition to the SD module.
If not, you must additionally enter the following definitions:
Define the company codes in your system
Define the plants and the storage locations in your system
Define, copy, delete, check sales organization
In this step, you define the sales organizations in your company. In order to bring the functional scope of a
sales organization in line with your organization, you should edit the following check list:
Legally, a sales organization is included in exactly one company code.
You can assign one or more plants to one sales organization.
The sales organization has an address.
Within a sales organization, you can define your own master data. This allows a sales organization
to have its own customer and material master data as well as its own conditions and pricing.
You can define your own sales document types within a sales organization.
You assign sales offices and your own employees to a sales organization.
All items in a sales & distribution document, that is, all items of an order, delivery or a billing
document belong to a sales organization.
A sales organization is the highest summation level (after the organizational unit Client) for sales
statistics with their own statistics currency.
The sales organization is used as a selection criterion for the lists of sales documents and for the
delivery and billing due list.
For each sales organization, you can determine the printer for output differently based on sales and
billing documents.
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A sales organization cannot share any master data with other sales organizations. The master data must be
created separately. The data for a distribution channel or a division can, however, be created for several
distribution channels or divisions.
Note
If you do not distinguish different sales organizations in your company, use sales organization "0001" as a
"general sales organization". Specify the value in the user master record as a parameter. The user then will
not have to make further entries.
Actions
To define a sales organization, enter a four-character alphanumeric key and a description. Enter an address
as well.
Define, copy, delete, check distribution channel
In this IMG activity you define distribution channels in your company or edit distribution channels that
already exist. In order to adapt the functional scope of a distribution channel to the organization in your
company, you should process the following check list:
You allocate a distribution channel to one or more sales organizations.
You allocate one or more plants to a distribution channel.
Within a distribution channel, you can define your own master data for customers or materials as
well as your own conditions and pricing.
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You can create master data for a representative distribution channel which is then also used in
other distribution channels. To do this, you have to additionally create the allocation of the
representative distribution channel to the other distribution channels.
For a distribution channel, you can determine your own sales document types.
You can determine sales offices for a distribution channel.
All items of a sales document belong to a distribution channel. The entire sales document is
therefore entered for a distribution channel.
The items of a delivery can belong to different distribution channels.
All items of a billing document belong to a distribution channel.
The distribution channel can be used as a selection criterion in lists.
You can determine the printer destination for messages differently for every distribution channel on
the basis of the sales and billing documents.
A distribution channel does not fulfill the following criteria:
A distribution channel does not have its own address.
You cannot allocate your own employees to a distribution channel.
You specify the representative distribution channels in the menu option "Define common distribution
channels ".
Recommendation
Please use the sales division "01" as "general sales division" if you do not differentiate between
different sales divisions in your company.
If you enter the value 01 as a parameter in the user master record, the user does not need to make
further specifications.
Define the master data for a representative sales division if you do not need to differentiate master
data by sales division. The data can then be used in several sales divisions.
Activities
1. Select the type of processing:
o To define a distribution channel, specify a two character alphanumeric key and a
description.
o Copy, delete or check the settings for a distribution channel.
2. Use the project IMG view to process data that has been changed automatically.
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Maintain sales office
In this step, you define the sales offices in your company. The definition of sales offices is optional. You
can use the SD System without creating sales offices. In order to bring the functional scope of a sales office
into line with your organization, you should use the following check list:
You assign a sales office to one or more sales areas.
A sales office can be divided into several vendor groups.
You can assign colleagues to a sales office.
A sales office has an address.
All items in a sales document belong to a sales office.
The items in a delivery or an invoice can belong to different sales offices.
The sales office acts as a selection criterion for lists of sales documents.
For each sales office, you can determine the printer for output based on the sales documents in
different ways.
A sales office is not:
a selection field for the delivery and billing due list.
a selection field for lists of deliveries and billing documents.
Actions
1. To define a sales office, enter the following information:
o a four-character alphanumeric key:
o a description
2. Also maintain the address.
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Maintain sales group
In this step, you define sales groups in your company. The definition of sales groups is optional. You can
use the SD system without creating sales groups. In order to bring the functional scope of a sales group into
line with your organization, you should use the following check list:
You can assign a sales group to one or more sales offices.
You can assign people to a sales group.
A sales group is responsible for all items in a sales document.
The items in a delivery or a billing document can belong to different vendor groups.
The sales group is a selection criterion for lists of sales documents.
For each sales group, you can determine the printer for output differently on the basis of the sales
documents.
A sales group is not:
a selection criterion for lists of deliveries or billing documents
a selection criterion for the delivery or billing due list
Actions
To define a sales group, enter a three-character alphanumeric key and a description.
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Materials Management
Maintain storage location
A storage location is the place where stock is physically kept within a plant.
A storage location has the following attributes:
There may be one or more storage locations within a plant.
A storage location has a description and at least one address.
It is possible to store material data specific to a storage location.
Stocks are managed only on a quantity basis and not on a value basis at storage location level.
Physical inventories are carried out at storage location level.
A storage location can be assigned to a warehouse number in the Warehouse Management
System. You can assign more than one storage location to the same warehouse number within a
plant.
Storage locations are always created for a plant.
Activities
Maintain your storage locations.
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Maintain purchasing organization
In this step, you set up your purchasing organizations.
From the Materials Management and Purchasing view, the purchasing organization is responsible for all
purchasing activities (including the processing of requests for quotations and purchase orders, for example).
The purchasing organization is integrated within the organizational structure as follows:
A purchasing organization can be assigned to several company codes.
(= Corporate-group-wide purchasing).
A purchasing organization can be assigned to one company code.
(= Company-specific purchasing).
A purchasing organization can also exist without being assigned to a company code.
o Since each plant must be assigned to a company code, the latter can be determined via
the plant at the time of each procurement transaction even if the procuring purchasing
organization has not been assigned to a company code.
A purchasing organization must be assigned to one or more plants.
(= Plant-specific purchasing).
A purchasing organization can be linked to one or more other purchasing organizations.
(= reference purchasing organization)
For more on this topic, refer to Assign Purchasing Organization to Reference Purchasing
Organization.
A purchasing organization can be divided into several purchasing groups that are responsible for
different operational areas.
Each purchasing organization has its own info records and conditions for pricing.
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Each purchasing organization has its own vendor master data.
Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.
Authorizations for processing purchasing transactions can be assigned to each purchasing
organization.
All items of an external purchasing document, that is, request for quotation, purchase order,
contract, or scheduling agreement, belong to a purchasing organization.
The purchasing organization is the highest level of aggregation (after the organizational unit
"client") for purchasing statistics.
The purchasing organization serves as the selection criterion for lists of all purchasing documents.
Possible organizational forms
You can organize your purchasing function in the following ways:
Corporate-group-wide purchasing
Company-specific purchasing
Plant-specific purchasing
All of these forms can co-exist within a single client.
Corporate-group-wide purchasing:
A purchasing organization is responsible for the purchasing activities of different company codes.
In this case, you do not assign a company code to the purchasing organization, but specify the company
code concerned for each individual purchasing transaction. You assign plants from different company codes
to the purchasing organization.
Company-specific purchasing:
A purchasing organization is responsible for the purchasing activities of just one company code.
In this case, you assign a company code to the purchasing organization. The purchasing organization may
procure only for this company code. You assign only plants of the company code concerned to the
purchasing organization.
Plant-specific purchasing:
A purchasing organization is responsible for the purchasing activities of one plant.
In this case, you assign the plant and the company code of the plant to the purchasing organization. The
purchasing organization may procure for this plant only.
Note
If you wish to work with a mixture of the above organizational forms, the reference purchasing
organization is of significance to you.
It is possible to allow one purchasing organization to access the contracts and conditions of another - a so-
called reference purchasing organization. This makes it possible for advantageous terms negotiated by one
purchasing organization to also be used by other purchasing organizations.
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Recommendation
Purchasing organization 0001 is already preset in all dependent tables.
SAP recommends that you retain this number if you require only one purchasing organization.
You will then have to customize only a few tables.
Activities
Create your purchasing organizations.
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Logistics Execution
Define, copy, delete, check warehouse number
A warehouse complex is represented in the Warehouse Management system as a warehouse number
that is used to identify a complex warehouse setup. The physical location is usually decisive for assigning
the definition of the warehouse number. A warehouse number groups together storage types and storage
bins that are organized and maintained as a complete unit.
All warehouse procedures, such as stock placements and stock removals of materials, are always executed
within a warehouse number.
A warehouse number has the following characteristics:
A warehouse number does not have an address, but a short descriptive text.
It is possible to store material data that is specific to a warehouse number.
Within each warehouse number, the stock figures are managed as quantities, not as values.
Within a plant it is not possible to assign several storage locations to the same warehouse number.
Example Warehouse numbers
Central Warehouse Berlin.....Whse number 001 Trading Goods Whse Munich... Whse
number 002
Standard Settings
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In the SAP standard system, warehouse numbers 001 and 002 are preset.
Recommendation
SAP recommends that you keep the warehouse number 001 if you wish to manage only one warehouse
complex.
For this you only need to adapt a small number of tables.
Activities
Create your warehouse numbers with the respective descriptions.
Further Notes
For more information on the warehouse number, refer to the IMG for Warehouse Management, Section
Define control parameters for the warehouse number.
In this work step, you can process an existing warehouse number.
Activities
1. Select the type of processing, and copy, delete, or check the settings for a warehouse number.
2. Use the IMG project view to edit the data that has been changed automatically.
Define, copy, delete, check shipping point
In this step, you define the shipping points in your company or edit shipping points that already exist. In
order to adapt the functional scope of a shipping point to the organization in your company, you should
process the following check list:
The shipping point is the top level in the organization for shipping.
A shipping point can be allocated to several plants.
A shipping point can be divided into several loading points.
A delivery is always initiated from exactly one shipping point. Thus, all items of a delivery belong to
one shipping point. Groups of deliveries also belong to exactly one shipping point.
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