Introduction to Sales and Distribution Enterprise Structure

Organisation structure of a company is termed as Enterprise Structure in SAP.

This represents the skeleton of an organisation. Each functional department  of a company is represented by an individual organisational element or Unit in SAP.

Enterprise structure need to be designed from reporting perspective and this would be basis for the creation of the master data.

SAP recommends to keep organisational structure as lean as possible and this will have an impact during master data maintenance.

Enterprise structure is divided into two parts :

1. Definition

2. Assignment 

Individual Org. elements will be created stand alone in the definition

Relationship between independent Org. elements will be done in Assignment process.

Below is the mapping of Organisational structure to that of SAP

Functional Terminology                                    SAP Terminology

Group of Companies  -------------------- ----------->  Company

Each Industry Vertical or Business Unit ----------- > Company Code

Sales Department of an Corporate office------------> Sales Organisation

Product or Services distribution medium  ----------> Distribution Channel

Product Range  ------------------------------------------> Division

Subsidary of a company from where sales activities

takes place for a specific geographical location ----> Sales Office

Sales teams of a company  ------------------------- ---> Sales Group

Manufacturing facility or Depo ( Go Down)---- - ---> Plant

Ramps of a Depo from where loading activities -----> Shipping Point
Takes place

In the above Structure :

FI consultant will be responsible for creation and maintenance of the Company and company code of an enterprise structure.

MM or PP consultant will be responsible for the creation and maintenance of the Plant.

SD consultant will be responsible for rest of the Org. Units