DEFINITIONS
DEFINE COMPANY:
In this step you can create companies. A company is an organizational unit in Accounting which
represents a business organization to the requirements of commercial laws in a particular country.
If your organization uses several clients, the companies which only appear as group-internal
business partners, and are not operational in each system, must be maintained in each client. This
is a preconditioned for the account assignment of a group-internal trading partner.
Companies must be cataloged in a list of company IDs which is consistent across the group. The
parent company usually provides this list of company IDs. It is also acceptable to designate legally
dependent branches ‘companies’ and join them together as a legal unit by consolidation.
PATH:
SPRO IMG Enterprise Structure Definitions Financial Accounting Define
Company
Step 1: Click on clock (beside Define Company).
Step 2: Click on New Entries button or press F5 to create a new company
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Step 3: Enter 4 digits ID (alphanumerical) in company field.
Step 4: Enter Company Name (30 characters limited)
Step 5: Enter Country, Language Key and Currency
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Step 5: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Company is a 4 digits ID (alphanumerical) and it has 3 mandatory fields.
a. Company
b. Language
c. Currency
These fields are predefined in standard SAP system. Therefore you need not create them again.
DEFINE COMPANY CODE:
The company code is an organizational unit used in accounting. It is used to structure the business
organization from a financial accounting perspective. You should create a company code
according to tax law, commercial law, and other financial accounting criteria. As a rule, a company
code in the SAP system represents a legally independent company. The company code can also
represent a legally dependent operating unit based abroad of there are external reporting
requirements for this operating unit, which can also be in the relevant local currency.
PATH:
SPRO IMG Enterprise Structure Definitions Financial Accounting Define
Company Code
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Step 1: Click on clock (beside Edit, Copy, Delete, Check Company Code)
Step 2: A window with multiple activities list would appear
Step 3: Double click on Edit Company Code Data
Step 4: Click on New Entries button or press F5
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Step 5: Enter 4 digits ID (alphanumerical) in the Company Code
Step 6: Type Company Code Name (30 characters limited)
Step 7: Enter Country, Language Key and Currency
Step 8: Press Enter and Save or Click Address button on the top of the fields. Now you will see
blank address fields where you enter all the available data with you.
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Step 9: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Company Code is a 4 digits ID (alphanumerical) and it has 3 mandatory fields.
a. Company
b. Language
c. Currency
These fields are predefined in standard SAP system. Therefore you need not create them again.
DEFINE SALES ORGANIZATION:
An organizational unit in Logistics that structures the company according to its sales requirements.
A sales organization is responsible for selling materials and services.
PATH:
SPRO IMG Enterprise Structure Definitions Sales and Distribution Define, Copy,
Delete, Check Sales Organization
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Step 1: Click on clock (beside Define, Copy, Delete, Check Sales Organization)
Step 2: A window with multiple activities list would appear
Step 3: Double click on Define Sales Organization
Step 4: Click on button or press F5
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Step 5: Type 4 digits ID and the name of the Sales Organization.
Step 6: Enter Statistics Currency (INR, EUR, AUD)
Step 7: Select the Sales Org. calendar from the tilt bar or keep the cursor in the field and press
F4 to get the list of available options.
Step 8: Check mark the Rebate pro. Active
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Step 9: Press Enter and Save or Click Address button on the top of the fields.
Step 10: A pop up window will appear with a warning message that “changing the statistics
Currency causes data inconsistency”.
Step 11: Click button and it would take you to a new address blank fields.
Step 12: Enter all the required fields from the available data. Press Enter and Save. A pop window
will appear with a transport request. Press Enter or click to continue.
NOTE:
Sales Organization is a 4 digits ID (alphanumerical) and it has 3 mandatory fields.
a. Statistical Currency
b. Sales Org. Calendar
c. Rebate proc. active
DEFINE DISTRIBUTION CHANNEL:
The way in which products or services reach the customer. Typical examples of distribution
channels are wholesale, retail or direct sales. You can maintain information about customers and
materials by sales organization and distribution channel. Within a sales organization you can
deliver goods to a given customer through more than one distribution channel. You can assign a
distribution channel to one or more sales organization. If, for example, you have numerous sales
organizations, each sales organization may use the 'Wholesale' distribution channel.
PATH:
SPRO IMG Enterprise Structure Definitions Sales and Distribution Define, Copy,
Delete, Check Distribution Channel
Enterprise Structure 9
Step 1: Click on clock (beside Define, Copy, Delete, Check Distribution Channel)
Step 2: A window with multiple activities list would appear
Step 3: Double click on Define Distribution Channel
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Step 4: Click on or Press F5.
Step 5: Enter a 2 digit ID and the Name of the Distribution Channel (20 Characters limit)
Step 6: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Distribution Channel is a 2 digits ID (alphanumerical) and it has no mandatory fields.
DEFINE DIVISION:
The division is one of the organizational units in Sales & Distribution and is also required for
business area account assignment for logistics transactions in Financial Accounting. The business
area for the materials is determined via the plant and the division defined in the material master
record.
PATH:
SPRO IMG Enterprise Structure Definitions Logistics – General Define, Copy,
Delete, Check Division
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Step 1: Click on clock (beside Define, copy, delete, check division)
Step 2: A window with multiple activities list would appear
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Step 3: Double click on Define Division
Step 4: Click on or Press F5.
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Step 5: Enter a 2 digit ID and the Name of the Distribution Channel (20 Characters limit)
Step 6: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Division is a 2 digits ID (alphanumerical) and it has no mandatory fields.
DEFINE PLANT:
The plant is an operating area or branch within a company. The plant is embedded in the
organizational structure as follows:
• The plant is assigned to a single company code. A company code can have several plants.
• Several storage locations in which material stocks are managed can belong to a plant.
• A single business area is assigned to a plant and to a division.
• A plant can be assigned to several combinations of sales organization and distribution
channel.
• A plant can have several shipping points. A shipping point can be assigned to several
plants.
• A plant can be defined as a maintenance planning plant.
PATH:
SPRO IMG Enterprise Structure Definitions Logistics – General Define, Copy,
Delete, Check Plant
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Step 1: Click on clock (beside Define, copy, delete, check Plant)
Step 2: A window with multiple activities list would appear.
Step 3: Double click on Define Plant
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Step 4: Click on or Press F5
Step 5: Type 4 digits ID in the Plant field and the Name of the Plant in Name 1 field
Step 6: Go to the Factory calendar field and select from tilt bar or keep the cursor in the field and
press F4 to get the list of available options
Step 7: Press Ctrl + S or click address button on top of the fields. It will take you to a new
blank address fields
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Step 8: Enter all the required fields from the available data and press Enter
Step 9: Once you finish saving it, the adderess window will close and you can notice the grayed
out Country Key, Region and Language Key fields are retrieved from the address window.
Step 10: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Plant is a 4 digits ID (alphanumerical) and it has 3 mandatory fields.
a. Country
b. Region
c. Factory Calendar
These fields are predefined in the standard SAP system. These 3 mandatory fields are very
important and play a vital role in calculating the TAX.
DEFINE STRORAGE LOCATION:
A storage location is the place where stock is physically kept within a plant. A storage location has
the following attributes:
• There may be one or more storage locations within a plant.
• A storage location has a description and at least one address.
• It is possible to store material data specific to a storage location.
• Stocks are managed only on a quantity basis and not on a value basis at storage location
level.
• Physical inventories are carried out at storage location level.
• A storage location can be assigned to a warehouse number in the Warehouse Management
system. You can assign more than one storage location to the same warehouse number
within a plant.
• Storage locations are always created for a plant.
PATH:
SPRO IMG Enterprise Structure Definitions Materials Management Maintain
Storage Location
Step 1: Click on clock (beside Maintain Storage Location.
Step 2: A pop up window appear asking for a Plant Work Area.
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Step 3: Enter Plant 4 digit ID and press Enter or click button
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Step 4: Click on or Press F5
Step 5: Enter 4 digits ID and the Name of the Storage Location in the Description field.
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Step 6: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Storage Location is a 4 digits ID (alphanumerical) and it has no mandatory fields.
DEFINE WAREHOUSE NUMBER:
A warehouse complex is represented in the Warehouse Management system as a warehouse
number that is used to identify a complex warehouse setup. The physical location is usually
decisive for assigning the definition of the warehouse number. A warehouse number groups
together storage types and storage bins that are organized and maintained as a omplete unit. All
warehouse procedures, such as stock placements and stock removals of materials, are always
executed within a warehouse number.
A warehouse number has the following characteristics:
• A warehouse number does not have an address, but a short descriptive text.
• It is possible to store material data that is specific to a warehouse number.
• Within each warehouse number, the stock figues are managed as quantities, not as values.
• Within a plant it is not possible to assign several storage locations to the same warehouse
number.
PATH:
SPRO IMG Enterprise Structure Definitions Logistics Execution Define, copy,
delete, check Warehouse Number
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Step 1: Click on clock (beside Define, copy, delete, check Warehouse Number)
Step 2: A window with multiple activities list would appear.
Step 3: Double click on Define Warehouse Number
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Step 4: Click on or Press F5
Step 5: Type 3 digits ID and the Name of the Warehouse Number in the description field.
Step 6: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Warehouse Number is a 3 digits ID (alphanumerical) and it has no mandatory fields.
DEFINE SHIPPING POINT:
In this step, you define the shipping points in your company or edit shipping points that already
exist. In order to adapt the functional scope of a shipping point to the organization in your
company, you should process the following check list:
• The shipping point is the top level in the organization for shipping.
• A shipping point can be allocated to several plants.
• A shipping point can be divided into several loading points.
• A delivery is always initiated from exactly one shipping point. Thus, all items of a delivery
belong to one shipping point. Groups of deliveries also belong to exactly one shipping
point.
• You can influence delivery scheduling via allocation to departure zones.
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PATH:
SPRO IMG Enterprise Structure Definitions Logistics Execution Define, copy,
delete, check Shipping Point
Step 1: Click on clock (beside Define, copy, delete, check Shipping Point
Step 2: A window with multiple activities list would appear’
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Step 3: Double click on Define Shipping Point
Step 4: Click on or Press F5
Step 5: Type 4 digits ID and the Name of the Shipping Point
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Step 6: Go to the Factory calendar field and select from tilt bar or keep the cursor in the field and
press F4 to get the list of available options
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Step 7: Select “C” (Default from Shipping Point) in Determine Loading time and press Enter. Then
you will see the “Loading time Working Days” option would appear where you will enter
the number of working days.
Step 8: Select “C” (Default from Shipping Point) in Determine Pick/Pack time and press Enter.
Then you will see the “Pick/Pack time Working Days” option would appear where you will
enter the number of working days.
Step 9: Press Ctrl + S or click address button on top of the fields. It will take you to a new
blank address fields
Step 10: Enter all the required fields from the available data.
Step 11: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
NOTE:
Shipping Point is a 4 digits ID (alphanumerical) and it has 4 mandatory fields.
a. Departure Country/Zone
b. Pick/Pack Time
c. Loading Time
d. Factory Calendar
These fields would be picked up when you determine the Shipping point.
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ASSIGNMENTS
COMPANY CODE TO COMPANY:
In this step, you assign the company code which you want to include in the group accounting to a
company.
PATH:
SPRO IMG Enterprise Structure Assignment Financial Accounting Assign
Company Code to Company
Step 1: Click on clock (beside Assign Company Code to Company)
Step 2: A window with multiple activities list would appear
Step 3: Click on button or Press SHIFT + F7
Step 4: A pop window would appear in which you need to type Company Code and press Enter
key
Step 5: Select the Company using the tilt bar or press F4 against the Company Code Field
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Step 6: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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PLANT TO COMPANY CODE:
In the IMG activity "Assignment Plant - Company Code" you assign each plant to a company
code. A plant can only belong to one company code. Complete functionality of the sstem can only
be ensured if the plants assigned to a company code are only those situated in the same country as
the copany code. It is therefore recommended that you also create a company code for each
country in which a plant is situated.
Examples:
• Only then are tax postings created when transferring stock between plants in different
countries.
• The taxation procedure and intrastat declaration are supported only for the country of the
company code.
Requirements:
Before you can assign plants to company codes, you must define the valuation control. You may
change the valuation control in the production system only after contacting your SAP consultant.
Changes may cause inconsistencies in documents.
PATH:
SPRO IMG Enterprise Structure Assignment Logistics - General Assign Plant to
Company Code
Step 1: Click on clock (beside Assign Plant to Company Code)
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Step 2: Click button or press F5
Step 3: Select Company Code and Plant using tilt bar or press F4 in their respective fields.
Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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NOTE: This process is from ECC 6.0 but it would different in older version like SAP R/3 4.7 and
other.
SALES ORGANIZATION TO COMPANY CODE:
You can use this step to define the allocaton of sales organization to company codes. This
establishes a link between the SD and FI systems. A sales organization belongs to just one
company code.
PATH:
SPRO IMG Enterprise Structure Assignment Sales and Distribution Assign Sales
Organization to Company Code
Step 1: Click on clock (beside Assign Sales Organization to Company Code)
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Step 2: Click on button or Press SHIFT + F7 to search your Sales
Organization
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Step 3: Select the Company Code using the tilt bar or keep the cursor in the field and press F4.
Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
DISTRIBUTION CHANNEL TO SALES ORGANIZATION:
In this step, you allocate the distribution channels to a sales organization. In this case, as many
distribution channels as desired can belong to a sales organization. In addition, a distribution
channel can be valid for several sales organization.
PATH:
SPRO IMG Enterprise Structure Assignment Sales and Distribution Assign
Distribution Channel to Sales Organization
Step 1: Click on clock (beside Assign Distribution Channel to Sales Organization)
Step 2: Click on button or press F5
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Step 3: Select the Sales Organization and Distribution Channels using the tilt bar or press F4 in
their respective fields.
Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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DIVISION TO SALES ORGANIZATION:
In this step, you allocate as many divisions as desired to a sales organization. Any one division can
belong to several sales organizations.
PATH:
SPRO IMG Enterprise Structure Assignment Sales and Distribution Assign
Division to Sales Organization
Step 1: Click on clock (beside Assign Division to Sales Organization)
Step 2: Click on button or press F5
Step 3: Select the Sales Organization and Division using the tilt bar or press F4 in their respective
fields.
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Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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SET UP SALES AREA:
In this step, you set up the sales areas. You can create a sales area for any combination of sales
organization, distribution channel and division.
Requirements:
First you must make the following allocations for a sales organization:
• You have to allocate the distribution channels (see "Assign distribution channel - sales
organization).
• You have to allocate the divisions (see "Assign division - sales organization").
PATH:
SPRO IMG Enterprise Structure Assignment Sales and Distribution Set up Sales
Area
Step 1: Click on clock (beside Set up Sales area)
Step 2: Click on button or press F5
Step 3: Select the Sales Organization, Distribution Channel and Division using the tilt bar or press
F4 in their respective fields.
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Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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SALES ORGANIZATION – DISTRIBUTION CHANNEL – PLANT:
Use this step to assign any number of plants to a combination of sales organization and distribution
channel. A plant can be assigned more than once. You define the combination of sales
organizations and distribution channels in IMG activity "Assign distribution channels - sales
organizations". These combinations are then automatically proposed as defaults for maintenance.
PATH:
SPRO IMG Enterprise Structure Assignment Sales and Distribution Sales
Organization – Distribution Channel – plant
Step 1: Click on clock (beside Assign Sales Organization – Distribution Channel – Plant)
Step 2: Click on button or press F5
Step 3: Select the Sales Organization, Distribution Channel and Plant using the tilt bar or press
F4 in their respective fields.
Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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WAREHOUSE NUMBER TO PLANT/STORAGE LOCATION:
So that SAP system can recognize which storage locations in Materials Management are controlled
by the Warehouse Management system (LE-WM), you must assign the plants and the storage
location to the warehouse number. Within a plant it is possible to assign several storage locations
to the same warehouse number. Here we would ask you to refer also to the notes in the chapter
Define storage location control (WM interface to inventory Management).
PATH:
SPRO IMG Enterprise Structure Assignment Logistics Execution Assign
Warehouse Number to Plant/Storage Location
Step 1: Click on clock (beside Assign Warehouse number to plant/Storage Location
Step 2: Click on button or press F5
Step 3: Select the Plant, Storage Location and Warehouse Number using the tilt bar or press
F4 in their respective fields.
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Step 4: Press Enter and Save. A pop window will appear with a transport request. Press Enter or
click to continue.
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SHIPPING POINT TO PLANT:
In this step, you can allocate as many shipping points as desired to the plants. Any one shipping
point can belong to several plants.
PATH:
SPRO IMG Enterprise Structure Assignment Logistics Execution Assign Shipping
Point to Plant
Step 1: Click on clock (beside Assign Shipping Point to Plant)
Step 2: Find the Plant using Ctrl + F option
Step 3: Type the Plant 4 digits ID and press Enter
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Step 4: Double click on the Plant in the pop up window
Step 5: Click on button on top
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Step 6: Another pop up window would appear with a list of Shipping points.
Step 7: You can search your Shipping Point using Ctrl + F option and check mark your plant and
click the button to continue.
Step 8: Press Ctrl + S to save the transaction. A pop window will appear with a transport request.
press Enter or click to continue.
