1. Configuration in SAP
Specifying the Organization Structure, Codes and Names
Specifying the Document Types for Each element of the Org Structure
Controlling the business process
Item category
Schedule line category

2. Organizational Structure
Company
Sales Organization
Distribution Channel
Division
Sales Area (Sales Org, Dist Channel, Div)
Sales Office
Sale Group
Sales Person (!)
What’s the right structure for your organization?

3. Organizational Structure
Company Legal Unit
Sales Organization Internal Reporting
Distribution Channel Prices may differ
Division Products defined by Div
Sales Area Customers defined by Area
Sales Office optional
Sale Group optional
Sales Person (!) optional
What’s the right structure for your organization?

4. Defining Org Structure to SAP
Done through the IMG or Implementation Guide.
Access for us is problematic, right now.
Process of adding org units is straightforward. No surprises

5. Show IMG Picture

6. Linking Document Types to Organizational Units
Sales Area
Sales Org
Dist. Channel
Division
Can allow any doc type for any of the above
Standard Order (OR)
Inquiry
Free-of-charge Delivery
Returns
Etc.

7. How to Link Document Types to Organizational Units in SAP
Use the IMG
Straightforward
But, you have to keep it updated
Problem is, if you choose too complex a scheme, and later add a new division (product class), you have to make a bunch of changes to IMG to allow orders, returns, etc. If you forget to do this, you will be dead in the water!

8. Control of Business Processing is at Item and Schedule Line Level
An Order can have many items. Some are standard, some are non standard
Standard items are generally priced, delivered, billed etc.
Examples of non-standard items: free goods, text lines clarifying the order, etc.
Each Item line can have multiple schedule lines. (a portion delivered one day, rest sometime later.)
There is process control at the item level, and at the schedule line level

9. Show SAP Order On-line

10. Item Level Control
Once an item line has been “checked” (or saved), it is given an item category.
The item category determines processing:
Are schedule lines permitted?
Should there be delivery processing?
Should there be billing processing?
Should item be priced?
Completion rules – What field have to be filled out?

11. Examples Pricing Standard Item in Quotation (AGN)
Schedule lines allowed
Not relevant for billing
Relevant for Billing
No Pricing
Not relevant for Billing
No Schedule lines
Standard Item in Quotation (AGN)
Standard Item in Order (TAN)
Free-of-charge Item in Order (TANN)
Text Item in Order (TATX)

12. How Item Category is Determined
Sale Document Type From Document Header
Item Category Group From Material Master (Sales Org 2)
Item Usage ABAP program examines
Item Cat of Higher lev it. From Document Item lines
Leads to a default and possible alternatives

13. Schedule Line Category Determines Whether and How SAP Carries Out:
Goods Movement
Availability Checking
Product allocation and Tracking
Purchasing
Etc.

14. Schedule Line Categories Implication
CN No Availability Checking
No Product Allocation Tracking
CV Availability Checking
CP Availability Checking
Product Allocation Tracking

15. MRP Type Sch. Line Cat Actions
ND--no planning CN no availability checking, no prod allocation
VB--consumption MRP CV Avail. Checking but no Prod Allocation
PD CP Avail. Checking and Prod Allocation

16. How Schedule Line Category is Determined
Item Category From Document Item Lines
MRP Type From Material Master (MRP1)
Leads to a default and possible alternatives