SAP Tutorial - The First Step

Organization Structure - Illustration

As promised yesterday, here is the sample organization Structure
Lets have a closer look at this. As you can see, we have created at the top a Client numbered 777, this is the first thing that user's will be asked when accessing SAP (i.e., in which client they want to work). Right now there is no other client only one called 777, SF Corp. Ltd.

There are 4 Accounting related Areas defined on top, Controlling Area, Chart of Accounts, Chart of Depreciation, and Credit Control Area. All of these are assigned to a company code called 1000 (again SF Corp Ltd.). SF Corp Ltd has only one Purchasing Organization and 3 purchasing groups, it has got 3 physical locations where it stores materials and that is why we created 3 plants numbered 1000,2000, and 3000. Each of these physical locations have logical partitions of materials so we created Storage Locations in each of these plants called FG00 for Manufactured Goods, RM00 for all Raw Materials, and MA00 for Traded Finished Goods. We also created 3 Shipping Points from which sales dispatches take place, one for each plant. 

There is a Sales Area Defined for Company Code 1000, which comprises of Sales Organization Number 1000, Distribution Channel Number 10, and Division Number 10. SF Corp Ltd has got sales offices in 3 Metro Cities hence creation of 3 sales offices and 3 Sales Groups was done. In current Chart you see we have only one Sales Area. If SF Corp was selling their goods thru different sales channels then we would have created multiple Distribution Channels and if they had more than one product line and if their reporting needed was to have product line was reports, then may be we would have created more divisions. Currently they have only one product line which is one brand of plastic bottles in different shapes and sizes. They cater to the market using their dealers network spread across country. 

I gave you a sample Org Structure on the this page. There are many more things that I could have included but didn't, purely for the sake of simplicity. At this stage I want to keep things as simple as possible so that you are not confused and we can get long at a faster pace for learning SAP. From this moment onwards, this blog will take 2 major directions. On one hand I will try to teach you about basic configuration and the other will be helping you in the day-to-day operations.

We already know that there are many components within SAP viz. FI, SD, PP, MM, QM, HR etc. We will focus on 4 core areas of operations viz FI (which includes Accounts Receivable - AR, Accounts Payable - AP, Asset Management - AA, CO- Controlling, PA - Profitability Analysis), SD (Which include Sales Order Processing), PP (Entire Production Planning and Controlling), MM (Materials Management).You also know that these components are tightly integrated in such a way that data posted into 1 module may get updated in corresponding module automatically, without any need to re-enter that.

Tomorrow we will see, how some of this was configured in SAP.....

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