Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Fall, 2015.
EGN 5620 MM Org Structure D-2-1 Fall 2012
Transcript of EGN 5620 MM Org Structure D-2-1 Fall 2012
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Materials Management(MM) Organizational
Structure
EGN 5620 Enterprise Systems Configuration(Professional MSEM)
Fall, 2012
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MM Organizational Structure
SAP Implementation
EGN 5620 Enterprise Systems Configuration(Professional MSEM)
Fall, 2012
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MM Organizational Structure
Related Topics
MM and organizational data
Organizational data & structures
Organizational relationships
Warehouse management
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Business Process Integration
Rules
FI
MM
SD
FI SDMM
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MM Organizational Data
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Organizational Data
A hierarchy in which the organizationalunits in an enterprise are arrangedaccording to tasks and functions
Are static data and are rarely changed
The definitionof organization units is a
fundamental step;it is a critical factor inhow the company will be structured andrun.
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Client
CompanyChart of
Accounts
Company
Code
Fiscal Year
Variant
Credit Control
Area
Organizational Structure
Controlling
Area
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SAP Org. Structure (review)
Client
Company
Chart of accounts
Company code Credit control area
Fiscal year variant
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Client (review)
Highest hierarchical level in an SAPenvironment
A complete database containing all the
tables necessary for creating a fullyintegrated information system
Master records are created at the clientlevel
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Chart of Accounts (review)
A Chart of Accounts contains a completelist of all of the accounts utilized in theGeneral Ledger for a given company
A chart of accounts must be assigned to
every company code in order to create theGeneral Ledger for that company
Several company codes can use the samechart of accounts
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Company (review)
Consolidated financial statements arecreated at the company level
A company can include one or more
company codes All company codes must use the same
chart of accounts and fiscal year
Company is not required in the definition
of an enterprise (optional)
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Company Code (review)
A legally independent entity The smallest organizational unit for which
accounting can be carried out
Business transactions are processed at
this level Accounts are managed at this level
Legal financial statements, such as thebalance sheet and the income statement,are generated at this level using theGeneral Ledger balances
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Fiscal Year Variant (review)
Specifies the accounting fiscal year forreporting purposes
Special periods are created to aid in thequarterly or year-end adjusting process
completed prior to preparing financialstatements
A single fiscal year variant is assigned toeach company code
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Credit Control Area (review)
An organizational unit or area ofresponsibility created to control customercredit limits
A company code is assigned to one andonly one credit control area
Multiple company codes can be assignedto one credit control area
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Controlling Area (review)
An organizational unit that serves tobroadly define a managerial accountingand reporting system
Each company code can be assigned toone and only one controlling area
Controlling areas can consist of multiplecompany codes thereby enabling cross-
company allocations
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Controlling Area (continued)
Modules
SD
MM
HR
FI
Cost and
Revenue
Accounting
Profit
Center
Accounting
Overhead Cost
Accounting
ProfitabilityAnalysis
Product Cost
Controlling
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Cost Center Standard Hierarchy
An organizational unit that serves to refine and
focus a managerial accounting and reportingsub-system
Each standard hierarchy is attached to theappropriate Controlling Area
All cost centers (groups) of interest must beentered in the Standard Hierarchy
A mapping of responsibility to individualmanagers and cost centers facilitate:
Expense collection Expense tracking
Expense reporting
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Cost Center Groups
Logical groupings of cost centers in thestandard hierarchy to establishaccountability and responsibility for one ormore cost centers
Facilitates reporting, planning, andallocating costs at a more aggregatedlevel
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Cost Centers Designation
Units that are distinguished, for example,by area of responsibility, location, or typeof activity Copy center Security department Maintenance department
One or more value-added activities areperformed within each cost center
Can be permanent or temporary (e.g.,internal order)
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Cost Centers (continued)
Operates as a collector and assignor ofresponsibility for expenditures
A way to identify and track where costsare incurred for evaluation purposes
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Profit Centers primary revenue collection objects in the
system posted to all balance sheet postings
can be attributed by cost centers
assigned to a single controlling area and asingle company code
grouped together into a hierarchy torepresent the organization structure for
analysis of income versus expenditure fordifferent parts of a organization
Some organizations dont have profit centers
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SAP MM Organizational Structure
Plant
Valuation Area
Storage Locations
Shipping Point
Purchasing Organizations
Purchasing Groups
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Company C001
Plant P001 Plant P002
Storage Loc. 30Storage Loc. 10
Warehouse 1 Warehouse 1
Aisle 1 Aisle 1 Aisle 2Aisle 2 Aisle 3
Rack 1Rack 1 Rack 1
ABC123
Storage Loc. 40Storage Loc. 20
Organization structure (Plant)- inventory vs. warehouse mgt.
Inventory
Management
(MM)
Warehouse
Management (WM)
Company Code
Plant
Storage Loc.
Warehouse
Aisle
Storage Rack
Quantity
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Plant
Lowest valuation area Organizational level where Material
Requirements (MRP) runs
Generally used to describe a productionsite, a distribution center or centralizedwarehouse
May be a physical or logical unit
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Valuation Area
The valuation area determines at whichlevel a material is valuated (inventoryvalue is established)
SAP R/3 allows valuation at the companycode or plant level, but recommendsvaluation area be set at the plant level
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Storage Location
Subdivision of a plant Where materials are managed (inventory
management) Raw Materials
Maintenance, Repair, and Other (MRO) materials
Finished Products
May be a physical or logical unit
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Organizational Relationship
Plant/Storage Location
Storage Location
20 - Quality
Storage Location
10 - Inventory
Plant P001
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Shipping Point
Shipping points are independentorganizational entities within whichprocessing and monitoring of thedeliveries as well as goods issue is carried
out. A delivery is processed by one shipping
point only.
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SAP (Sub)modules in MM (I)1. Purchasing Management
SAP sub-module that involves the acquisition ofgoods and services to support the creation ofgoods and services in the organization
Master data for the purchasing management exists
in the (MM) as well as the (FI) modules It interfaces with the Production Planning (PP), andQuality Management (QM) modules
2. Inventory Management A SAP sub-module that involves goods movement, material
stock and inventory controlling, material documents, & periodprocessing
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SAP Modules using MM (II)
Warehouse management
A SAP module that focuses on managingmaterials location in a warehouse
No connection with its financial module
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Purchasing Organization
Organizational unit is responsible for theprocurement of materials and services.
SAP requires that purchasing organizationsbe assigned at the plant level
A purchasing organization can be assignedto more than one plant
A purchasing organization can be assignedto a company code
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Plant/Purchasing Organization (1)
One plant multiple purchasing organizations
Purchasing
OrganizationP002
Purchasing
OrganizationP001
Plant P001
Organizational Relationships
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Plant/Purchasing Organization (2)
Each plant has its own purchasing organization
Purchasing
OrganizationP002
Plant P002
Purchasing
OrganizationP001
Plant P001
Organizational Relationships(Continued)
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Plant/Purchasing Organization (3)
One purchasing organization for multiple plants
Plant P002Plant P001
Purchasing
Organization
P001
Organizational Relationships(Continued)
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Organizational Relationships(continued)
Plant/Purchasing Organization (4)
One purchasing organization for multiple company codes
Company Code
C002
Company Code
C001
Purchasing
OrganizationP001
Plant
P002Plant
P001
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Purchasing Group
Responsible for specified purchasingactivities
Often used to identify individual buyers
Used for reporting
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Organizational Relationships
Purchasing Organization/Purchasing Group
Purchasing Group
002
Purchasing Group
001
Purchasing
Organization
P001
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Organizational Structure
Purchasing
OrganizationP001
Company Code
C001
Storage Location
20 - Quality
Storage Location
10 - Inventory
Plant P001
PurchasingGroup
001
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Warehouse Management
Not required for purchasing functionalityof SAP R/3
A separate module in the SAP R/3
environment Many functions and elements can be
performed outside of the module
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Warehouse Management Elements
Receiving, identifying and sorting goods Placing goods into storage bins
Taking inventory
Monitoring and inspecting goods in storage
Preplanning distribution of materials
Picking and accumulating orders
Packaging, loading and shipping goods
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Company C001
Plant P001 Plant P002
Storage Loc. 30Storage Loc. 10
Warehouse 1 Warehouse 1
Aisle 1 Aisle 1 Aisle 2Aisle 2 Aisle 3
Rack 1Rack 1 Rack 1
ABC123
Storage Loc. 40Storage Loc. 20
Inventory Management & WarehouseManagement Relationships
InventoryManagement
(MM)
Warehouse
Management (WM)
Company Code
Plant
Storage Loc.
Warehouse
Aisle
Storage Rack
Quantity
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PEN, Inc.MM
Organizational Structure
EGN 5620 Enterprise Systems Configuration(Professional MSEM)
Fall, 2012
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Pen Inc. Organizational Structures
Plant
(Pxxx)
Client (600)
Chart of
Accounts (Cxxx)
Company
Code (Cxxx)
Fiscal Year
Variant (2012)
Credit Control
Area (Cxxx)
PurchasingOrganization
(Pxxx)
Purchasing
Group (xxx)Shipping
Point
(Sxxx)
Controlling
Area (Cxxx)
SL10 SL20
Cost CenterStandard
Hierarchy
(PENINCxxx)
ADMINxxx
A005 A015 A020A010
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Exercises: (Due Date 8/18/2012)
60. Create Vendor Master Accounting
61. Create Vendor Master Purchasing Record62. Create Vendor Master Record Centrally63. Create Vendor Master Record Centrally64. Create Vendor Master Record Centrally
69. Create material Master for Trading Goods82. Create Vendor Master Record for Landlord83. Create Rent Expense Account84. Create for Invoice Receipt for Rent Expense85. Display and Review G/L Account Balances and
Individual Line Items
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Exercises:
86. Display and Review Vendor Account Balances
and Individual Line Items87. Post Payment to Landlord88. Display and Review G/L and Vendor Account
Balances and Individual Line Items124. Create Shipping Point
201.Create Controlling Area202. Assign Company Code to Controlling Area203. Create Cost Center Standard Hierarchy
211. Maintain Cost Center Standard Hierarchy