1. What is org structure?

Org structures are mirror image of legal and organizational units of

your business.
a. Determine how documents are used.
b. Determine how documents are classified.
c. How reporting is carried out.

2. What is configuration of org units?

Config of org units – Definition and assignment of org structures.

3. What is the importance of org structures?

Org structure configuration is the framework used in all business
transactions.
Affects master data – material and business partner.
Wrong assignment – create unnecessary master data and confuse
the users.
Missing valid org links – cause limitations when processing real-life
scenarios.
Hence, config should be done correctly.

4. What are the org units in accounting?

a. Client – highest level of org structure in the hierarchy.
Represents an enterprise group formed by one or more
company codes.
Represented by 3-digi number.

System requires at least one company code in each client.

b. Company Code – smallest independent legal accounting unit.

It has its own chart of accounts.

5. What is a client?
Technically - Client is considered a subset of database.
Business – Group of corporations or subsidiaries owned by same
parent company.

6. What is client-dependent and client-independent?

Client-dependent – user can see data only if they log on to
corresponding client.
Eg – Material, business partner, transactional documents, sales org,
company code, etc.
 Client- independent – Objects shared across the client.
Eg – Output devices, ABAP program, directory of repository objects.

7. How to differentiate between client-dependent and client-

independent?

Tables having MANDT field, 3-digit client code, is always present in

client-dependent table and missing in client-independent table.

8. Why are changes not allowed in production environment?

Because the client is locked.

9. How are changes moved from customization client o test client?

Via client copy tools (T-code SCC1)

10. What is current settings?

Customizing settings which can be maintained in production client
without a transport request.
Eg – Posting period, exchange rate, etc.

11. T-code to maintain the company code?

SPRO -> Enterprise Structure -> Definition -> Financial Accounting -
> Edit, Copy, Delete, Check Company Code.

12. What details are maintained in company code?

Company code(4 char alpha-numeric), company name, city, country,

language, currency and address.

13. Where is company’s address printed?

Company’s address is displayed on outputs, such as financial
statement and invoices.
 14. What are global parameters of company code?
Configuration of company code that control how they behave in the
system. Eg – Chart of accounts, Fiscal year variant, etc.

15. T-code and path to maintain global parameters of company

code?
OBY6 – SPRO -> Financial Accounting -> Financial Accounting Global
Settings -> Global parameters for Company Code -> Enter Global
Parameters

16. What is default company code in SAP?

Company code 0001 exists in client 000 and 001 for country
Germany.
As company codes have country-specific settings, we need separate
company code for each country.

Sales Organization –

1. Legal entity
2. Responsible for sales and distribution of goods and services.
3. This business unit defines terms of sales.
4. It is present in all SD documents.
5. It is defines as 4-character alphanumeric key.
6. We should have minimum number of sales orgs in the system, to
minimize records in master data.
7. Address is maintained for sales org.
8. Each sales org has its own currency for statistics and its own
calendars.
9. Sales org is assigned to only 1 company code.
10. 1 or more plants are assigned to sales org.

Distribution Channel –

1. Determines how goods and services will reach your customer.

2. It is defined as 2-character alphanumeric key.
3. Address cannot be maintained for distribution channel.
4. Distribution channel can be assigned to one or more sales org.
5. One or more plants can be assigned to same distribution channel.
6. All items in same sales and billing document belong to same
distribution channel.
7. Items in same delivery can belong to different distribution channel.
Division –

1. Represents a groups of products or services that have similar

characteristics or belong to same line of business.
2. Use of division helps salesperson specialize in certain business area,
example data products for personal storage or storage for enterprise
application.
3. It is represented by 2-digit alphanumeric key.
4. It can be assigned to one or more sales org.
5. It can be assigned to one or more distribution channel.
6. Material master record is always assigned to 1 division.
Even though division is maintained in Sales org 1 view, the value is
stored in MARA table, so the value is same regardless of the sales
org.
7. Items in the same delivery or billing document can belong to
different divisions.

Sales Office –

1. It represents a physical location.

2. Responsible to sell goods and services in a geographical area.
3. Represented by 4 character alpha-numeric key.
4. Address must be maintained for the sales office.
5. Can be assigned to one or more sales area.
6. Sales office can be divided into sales group.
7. Items in sales document belong to same sales office.
8. Items in same delivery and billing can belong to different sales
office.

Sales Group –

1. Represents group of employees in sales office.

2. Represented by 3-character alphanumeric key.
3. Can be assigned to one or more sales office.
4. Salesperson can be assigned to sales group.
5. All items in same sales document belong to same sales group.
6. Items in same delivery or billing document can belong to different
sales groups.

17. What is a mandatory pre-requisite for processing sales

transactions?
Sales area is a mandatory pre-requisite for processing sales
transactions.
 It determines which distribution channel can be used to sell
products of a certain business division in a sales organization.

18. How can system propose sales area automatically?

Store the 3 org units as user parameters in user master record,
system will propose these values automatically.

19. T-code and path to maintain user master record?

20. At what level the master data records in sales and distribution
are created?
Sales area level. Eg – Business partners, materials and pricing
condition records.

21. Path to define division?

SPRO -> ES -> Definition -> Logistics-general -> Define, Copy,
Delete, Check Division

22. What is the purpose of ‘Hide in’ checkbox?

This option is useful when your business is acquired by another
company and the corresponding sales org must not be used going
forward.
The check-box if checked will hide the value from the input help.
System will not throw error if hidden value is entered by user.

23. Hide value in input help is available in which org units?

Sales org, distribution channel, division, sales office, sales group

24. What is reference distribution channel for common conditions?

Save time in creating and maintaining master data, i.e., same
master data can be used for different distribution channel.

25. How to establish connection between SAP Sales and SAP

Finance?
By assigning each sales org to a company code.

26. What are the org units in Logistics?

Plant –

1. Operational unit which represents manufacturing facility.

2. It plays fundamental role in material valuation, material requirement
planning (MRP) and production, inventory management and costing.
3. It has address, language and belongs to a country.
 4. Material maser data is created at plant level for some views.
5. Plant can only be assigned to 1 company code but 1 company code
can have several plants.
6. A plant can have several storage locations.
7. A plant can have multiple shipping points.

Storage location –

1. Physical area within the plant where goods are stored.

2. Multiple storage locations can be maintained for the same plant.
3. At least one address must be maintained for each storage location.
4. Material master data is maintained at storage location level for
some views.
5. Valuation of stocks cannot be maintained at storage location level.
6. More than one storage location can be assigned to same warehouse
number within a plant.

Warehouse Number –

1. A physical warehouse complex – formed by several storage areas or

buildings in same geographical location.
2. Address cannot be maintained for warehouse.
3. Material master data is created at warehouse level for some views.
4. Valuation of stock cannot be done at warehouse level.
5. We can assign multiple storage locations to same warehouse
number within a plant, i.e., warehouse number is linked to
combination of plant and storage location.

Shipping points –

1. Physical location from where the goods are shipped.

2. Eg – loading ramp.
3. It is the highest org level for shipping activities.
4. Shipping point is needed to create delivery document in the system.
5. It is represented by 4 character alphanumeric key.
6. Each delivery document is processed by exactly one shipping point.
7. Address must be maintained for shipping point.
8. Shipping point can be divided into loading point.
9. Shipping point can be assigned to multiple plants.
10. All items in a delivery belong to same shipping point.
11. In sales document, shipping point can be determined at item
level.
Loading point –

1. A sub-division of shipping point.

2. A group of materials having same loading requirement.
3. Eg – same loading bay or materials require same amount of time for
loading.

Transport planning point (TPP) –

1. Group of employees responsible for creation of shipping document

in transportation process.
2. Each TPP is assigned to one company code.

27. Path to define plant?

SPRO -> ES -> Definition -> Logistics – General -> Define, Copy,
Delete, Check Plant.

28. Path to define storage location?

SPRO -> ES -> Definition -> MM -> Maintain storage location.

29. Path for warehouse and shipping point?

SPRO -> ES -> Definition -> Logistics Execution

30. When do we use EWM (Extended warehouse management)?

If the company is engaged in high-volume warehouse operations, we
use EWM.

31. When do we use Lean WM?

When warehouse is not required or warehouse is used only to
activate storage location. Lean WM allows us to pick deliveries using
transfer order without updating bin stock levels in warehouse
management.

32. What is shipping conditions?

Shipping strategy for delivery of goods to customers.
Typical values are – immediate, standard or pickup.