SAP Sales and distrubution Enterprise Structure

1. Enterprise Structures in Sales and Distribution
Contents:
 Introduction to the R/3 organizational elements
 Organizational units in the R/3 System
 Sales and distribution structures of the case company
IDES AG
© SAP AG 1999

2. Unit Objectives
At the conclusion of this unit, you will be able to:
 Describe the sales and distribution structures of
IDES AG
 Identify organizational units in the SAP System
that are relevant for sales and distribution
 Describe the essential characteristics of these
organizational units
 Form organizational structures using the
organizational units
 Form organizational structures using
combinations of organizational units
© SAP AG 1999

3. Overview Diagram: Enterprise Structures
Enterprise Structures in
Sales and Distribution
Sales Order
Processing
Pre-Sales Activities Inventory
sourcing
Invoice
Shipping
Payment
Billing
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4. Enterprise Structures: Business Scenario
 Your company IDES AG is part of the globally
operating IDES group.
 IDES AG produces and sells motorcycles.
Assemblies are delivered from plants in Europe
and North America.
 Your company also serves the market with
assemblies and spare parts.
 IDES usually sells to authorized dealers that only
sell IDES vehicles.
© SAP AG 1999

5. Organizational Structure of IDES Holding AG
IDES AG
IDES US INC New York
Frankfurt
© SAP AG 1999

6. Sales and Distribution Structures of IDES AG
IDES AG
Company
Sales and Sales and
Distribution Distribution
Frankfurt Berlin
Sales office
Chain Industr.
Reseller Service
stores Consumer
Distribution channel
Motorcycles Services Food Paint
Product line
© SAP AG 1999

7. Delivery Structure of IDES AG
IDES AG
Sales and Sales and
Distribution Distribution
Frankfurt Berlin
Sales office
Warehouse Warehouse Warehouse
Hamburg Dresden Berlin
Distribution center
5 6 7
3 4
1 2 14
11 12 13
8 9 10 19 20 21
Hamburg Hamburg
17 18
15 16 28
25 26 27
22 23 24
29 30 31
Dresden Berlin
Shipping Standard Express
processing
© SAP AG 1999

8. Organizational Units in Sales and Distribution
 Company code
R /3
 Sales Area
Document
 Sales organization
 Distribution channel
 Division
 Plant
 Storage location
 shipping point
© SAP AG 1999

9. Organizational Units: Company Code
Company code
 legal entity and independent accounting unit
 at company code level, you create:
 balance sheets required by law
 profit and loss statement
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10. Organizational Units: Sales Organization
Sales organization
Responsible for:
 distributing goods and services
 negotiating sales conditions
 product liability and rights of recourse
© SAP AG 1999

11. Organizational Units: Distribution Channel
Sales organization
Distribution Channel 1 Distribution Channel 2
 is a means through which sales materials reach the customer
 represents your strategies to distribute goods and / or services to
your customer
 for example: wholesale trade, retail trade, internet trade, ...
© SAP AG 1999

12. Organizational Units: Division
Sales organization
Division 1 Division 2
 represents a product line
 for example: motorcycles, spare parts, services, ...
© SAP AG 1999

13. Sales Area
Sales
organization 1 Frankfurt 2 Berlin
Distribution
channel 2 Retail trade 5 Internet 1 Wholesale
trade
Division
2 Motorcycles 3 Computers 3 Computers 2 Motorcycles 1 Pumps
Sales 1 1 1 2 2
areas 2 2 5 1 1
2 3 3 2 1
© SAP AG 1999

14. Organizational Units: Plant and Storage Location
1 2 2
1 1 2
(Delivering) plant
B
BB
A
C
Plant 1 Plant 2 Plant 3
Storage location
© SAP AG 1999

15. Organizational Unit: Shipping Point
Plant 2 Plant 2
5 6 7
1 2 3 4 14
11 12 13
8 9 10 21
18 19 20
15 16 17 28
25 26 27
22 23 24
29 30 31
5 6 7 5 6 7
1 2 3 4 14 1 2 3 4 14
11 12 13 11 12 13
8 9 10 21 8 9 10 21
18 19 20 18 19 20
15 16 17 28 15 16 17 28
25 26 27 25 26 27
22 23 24 22 23 24
29 30 31 29 30 31
Shipping point 1 shipping point shipping point
© SAP AG 1999

16. IDES Holding AG in the R/3 System
Company Code Company Code
1000 IDES AG 3000 IDES New York
AG
Frankfurt
Sales organization Sales organization Sales organization
1000 Frankfurt 1020 Berlin 3000 Philadelphia
© SAP AG 1999

17. Sales Areas of IDES Holding AG in the SAP System
1000 1IDES AG
Company code
1000 1020 1Berlin
Frankfurt
Sales organization
12 Reseller 22 Industr.
14 Service 2 Chain Consumer
stores 2
Distribution
channel
02 Motor 08 Services 05 Food
03 Paint
cycles02
Division
© SAP AG 1999

18. The Delivery Process in IDES AG in the R/3 System
1000 1020
Frankfurt Berlin
Sales organization 1000
IDES AG
Company code
1000 1400 1300 1100
Hamburg Stuttgart Frankfurt Berlin
Plant
5 6 7
1 2 3 4
11 12 13 14
8 9 10 19 20 21
17 18
1000 1400 1100
15 16 28
25 26 27
22 23 24
29 30 31
...
Hamburg Stuttgart Berlin
Shipping point
© SAP AG 1999

19. Summary
You are now able to:
 Describe the sales and distribution structures of
IDES AG
 Identify organizational units in the R/3 System
that are relevant for sales and distribution
 Describe the essential characteristics of these
organizational units
 Form organizational structures using
combinations of organizational units
 Explain the most important relationships between
the organizational structures in sales and
distribution
© SAP AG 1999