Enterprise Structure in SD

CLIENT -A client is a self-contained technical unit. A client can be considered to be a
synonym for group.

Company Code

• A complete Accounting unit can be representing as the smallest organizational unit of external
accounting.

• At Company Code level we create

Balance sheet required by law
Profit and Loss statement.

• Each company code represents an independent accounting unit. Several company codes can use
the same chart of account.


Assignment

1. Company code to company
2. Company code to Credit control area
3. Company code to Controlling area
4. Company code to financial management area

Sales Organization

• A sales organization is uniquely assigned to a company code
• The highest-level of organizational unit in SD is Sales Organization.
•  Responsible for Distributing goods and services, Negociation sales conditions, Product liability
•  Sales organization is also used to take for example a regional, national or international.
•  A sales organization assigned to a company code.

Distribution Channel

• DC is assigned to a sales organization. The assignment is not unique.
• Distribution Channel represents strategies to distribute goods and services to customer.
• DC is assigned to a sales organization. The assignment is not unique.
• Can share Customer, Material and Condition master data by maintaining a reference/common DC.

Division

• A division is assigned to a sales organization. The assignment is not unique.
• A Division is used to group material and services. A material can have only one Division.
• We can make Customer- specific agreements for each Division, for example regarding partial deliveries or pricing within Division. (In CMIR).
•  You can share Customer and Condition master data by maintaining a reference/common Division.
•  A Division is assigned to a sales organization. The assignment is not unique.
•  You can use cross division to enter multiple materials with various divisions in a sales order.
• You can choose division specific sales, it is controlled by customizing for sales document type.

SAP SD Basic Accounting

As a SAP SD professional, you must be able to explain the basic of accounts and GL accounts in customizing.

Business process High level Overview

let’s imagine a simple business process:

• Company sells goods and create a Sales Order for 2,200 dollars
  (Selling price is 2,000 dollars plus 200 dollars sales tax)
• Create delivery document that starts the delivery process
• Process Goods Issue (GI) when goods leave the warehouse
• Billing customer (Billing document)
• Accounts Receivable or Clearing (get money from customer)

The material is valued at 1,000 dollars (the price in material master > accounting view)

The yellow blocks are those transactions that will create FI documents (accounting entries). 

GL account postings

Lets look at the postings to GL account (using T accounts)

The GL accounts in diagram is to show typical numbers. GL account determination of the Goods Issue transaction is set up in Automatic Account determination (in Materials Management). Revenue Account determination is done in SD.

Organization Units and their assignment

• The highest-level organizational unit in SD module is Sales Organization.
• A sales area is a combination of a sales organization, DC and division.
• A sales organization is uniquely assigned to a company code.
• DC is assigned to a sales organization. The assignment is not unique.
• A division is assigned to a sales organization. The assignment is not unique.
• A plant is assigned to a combination of sales organization and distribution channel.
• A plant is assigned to a company code.
• A material can have only one division.
• By defining and assigning Sales Org, DC and Div a sales area is not automatically formed. You have to set up a sales area.
• A sales office is assigned to a sales area.
• A sales group is assigned to a sales office.