Organization Structure

Organization Structures Client Company Code Sales Organization Distribution Channels Division Sales Area Sales Office Plant Shipping Organization

Organization Structure Plant Group Storage location Department Product line Service company Company Subsidiary SAP Client Company code Storage location Sales organization Division Distribution channel

Organization Structure CLIENT CLIENT Company code 1 Company code 2 area 1 area 2 Area 1 area 3 area 4 Area 2

Company Code Company Code l A company code represents an independent accounting unit, for example, a company within a corporate group. Balance sheets and Profit & Loss Statements, required by law, are created at the company code level.

Company Code Company Code

Sales Organization l A sales organization Is responsible for distributing goods and services. Is responsible for negotiating sales conditions. Carries out each business transaction. Each sales organization is assigned to a company code.

Sales Organization Company Code Sales Organization

Distribution Channels are the means through which sales materials reach the customer. Distribution channels include: n Retail trade Wholesale trade Direct sales Wholesale distributor Sales organization trade Retail dealer

Distribution Channels Sales Organization 1000 10 Wholesale 20 Retail 30 Direct Sales Distribution Channels XYZ Company Retail Outlets

Divisions l l A A division division can be used to segment a business into can be used to segment a business into product lines. product lines. l l In sales and distribution, the division allows you to In sales and distribution, the division allows you to make customer-specific agreements such as: make customer-specific agreements such as: n n Partial deliveries Partial deliveries n n Pricing agreements Pricing agreements n n Special payment terms Special payment terms Plant Plant Division Division

Divisions Sales Organization Divisions Notebooks CD-ROM

Sales Area l A sales area is the combination of: The Sales organization Distribution channel Division (product-related) The is used for reporting and pricing. Sales Organization Distribution Channel Division Division 1 Division 2 Distribution Channel 1 Channel 2 Sales Org 1 Sales Org 2

Sales Area Company Code Sales Organization Distribution Channel Client Company Code 0001 0002 0003 Sales Organization 1000 2000 3000 4000 Distribution Channel 10 20 Sales Area 1 Division 01 02 01 02 sales office sales group

Sales Office Sales Office 1 Sales Office 2 Watson & Co. Alex Wholesale Retail Shop 1 David & Don Alex Wholesale Retail Shop 2

Sales Office & Sales Group Geographical aspects of the organization in business development and sales n n n n A sales office can be considered as a subsidiary n n Sales offices are assigned to sales areas l l A A Sales group n n The staff of a sales office may be subdivided into sales groups

Sales Office & Sales Group

Plants l A plant is an organizational element within a company. A plant produces goods, renders services, or makes goods available for distribution. A plant can be one of the following types of locations: n Manufacturing facility Warehouse distribution center

Plants CLIENT Company : ABC Company : XYZ Plant A Plant C Plant B

Plant Assignment COMPANY ABC COMPANY XYZ Plant A Sales Organization A

Shipping Point l A shipping point is a fixed location that carries out shipping activities. Each delivery is processed by only one shipping point. Plant 1 Plant 2 Shipping point 2 point 1

Shipping Organization Plant A Plant B 2 Shipping Point 1 Shipping Point 3