Company in SAP

1. A company in SAP represents a Corporate Group 2. Defining a company in SAP is optional 3. All company codes within a company have to use the same operational chart
of accounts and fiscal year.

4. One company may have one or more one company codes. 5. Length is Six Character Alpha-numeric Key 6. Table name (T880)
Company Code

1. It is a 2. 2. a. b. 3. 4. 5. 6. 7.

legal and standalone or independent accounting unit. It is responsible for The entry of all accounting transaction. Maintain own Financial statement as per Company Act like- Profit and Loss Statement, Balance Sheet etc. One Company has more than one company codes but one company code can assign to only one Company. Same chart of account can be used by more than one company codes. It has own address. Its Length is four Character Alpha-numeric Key. Table name (T001)

Business Area 1. Business area is independent accounting entity within client that generate its owns Profit and Loss account and Balance sheet for both internal and external reporting purpose. 2. Business area can be used by several company codes 3. It does not assign to any company code by this it makes possible to evaluate transaction figures for each business area beyond the boundaries of company code. 4. The relevant business area is determined for each order item according to defined rule. These are:a. Plant and Item division b. Sales area c. Sales Organization, Distribution Channel and Item Division 5. A dunning area can be allocated to a sales area 6. Length is four-character alphanumeric key. 7. Table (TGSB) Sales Organization 1. Sales organization is a legal organizational unit responsible for selling of Products and services. 2. Sales organization responsible for a. Negotiating and transaction with customer. b. Product guaranty and warranty c. Customer rights to recourse 3. It is created / defined on basis of any one factor. a. Market b. Line of Business (LOB) 4. At least one sales organization required if SD module is implementing

5. It is highest level Organizational unit in Sales and Distribution. 6. One company code has more than one sales organization but one sales organization has only one company code. 7. Sales organization is not directly assigned plant but Sales organization and Distribution Channel combine and became Distribution chain which is assigned to Plant then that plant becomes delivering plant. 8. Following Master Records are maintained at Sales Organization level. a. Customer Master Record (CMR) b. Material Master Record (MMR) c. Condition Master Record 9. Attribute of Sales Organization a. Its length is four alpha numeric characters. b. If ref. Sales Organization is assigned one sales organization then all sales document types assigned to the reference sales organization, are also allowed for that sales organization. c. Internal Customer Number may be assigned if inter-company sales is used d. A Calendar for Sales Organization which specifies the working days etc can be maintained e. Sales organization must be activated for Rebate Processing f. Texts are standard texts which are created at T.Code:- [SO10] and called in output. 10. Table name a. Define Table(TVKO) b. Assignment with Company Code table (TVKO and BUKRS) Distribution Channel 1. Distribution Channel is the path or way through which goods and services supplied to customer. 2. For examples are wholesale, Retailer, Direct Sale, Instititutional Sales, Catalog and web-based. 3. Many Distribution Channel is assigned many sales organizations irrespective to any company code. 4. When we assign one distribution channel to any sales organization means that sales organization can sell products to its customer through that distribution channel. 5. Following Master Records are maintained at Distribution Channel Level by maintaining Reference or Common DC. a. Customer Master Data b. Sales Master Data c. Condition Master Data 6. Length is two Character Alpha-numeric Key 7. Table a. Definition (TVTW) b. Assignment with Sales Organization (TVKOV) Division 1. Logically grouping of products and services on basis of their nature d services. For example toothpaste, soap, lipstick, nail polish etc but toothpaste and soap

2. 3. 4. 5.

6. 7.

both are FMCG in nature and lipstick and nail polish both are cosmetic in nature. Then we make two division FMCG and Cosmetic. It represents a product group or product line. Material is belongs to only one division that so why it is appearing in Basic Data. Division used for a. Determined Sales area b. Statistical Analysis Division is assigned to Sales Organization individually example FMCG division is assigned to only sales org then in that sales organization can sell out only toothpaste and soap but not nail polish because it belongs to cosmetic division. Its length is two Character Alpha-numeric Key Table a. Define (TSPA) b. Assignment with Sales organization (TVKOS)

Sales Area 1. Sales area is the unique and sequential combination of sales organization, distribution channel and division. 2. It is possible to set up sales area when sales organization is individually assigned with Distribution channel and Division. 3. It is internal Organizational unit which is not defined but generated in assignment. 4. It is used for maintaining master data, transactional data and reporting purpose. a. Customer Master Record (CMR) b. Material master data c. Condition Record for price. 5. Sales Area is assigned to following elements a. Sales document types b. Credit control area c. Sales office 6. Table Name (TVTA) Sales Office 1. Sales office is physically geographical location or Brach office where sales employees are associate with it for sales activity for that geographic region. 2. As it is represent to physical location that so why it has its own address. 3. It is optional organization unit. 4. One sales office can assign multiple sales areas. 5. Its Length is four character alpha numeric key. 6. Table a. Define Sales Office (TVBUR) b. Assign sales office to sales area(TVKBZ) Sales Group 1. Grouping of sales employee on basis of their work nature or work area or division or distribution channel.

2. For example Vodafone sales it product through Retail and corporate. And sales employees are grouped for retail and corporate both work area are different. 3. A sales group is responsible for all items in a sales document. 4. The sales group is a selection criterion for lists of sales documents. 5. For each sales group, you can determine the printer for output differently on the basis of the sales documents. 6. Sales group is optional 7. Sales employee is assigned to Sales Group along with Sales organization and Sales office in its master record T.Code:- [VPE1] or [PAL1]. 8. Sales group is assigned to several sales offices. 9. Length is three Char-alphanumeric Key 10. Table a. Maintain sales Group(TVKGR) b. Assign sales group to sales office(TVBVK) Plant in SAP

1. Plant is an operational unit in company code and it is a location where we deal

with stock.

2. It meaning is different from PP, MM, and SD views. 3. PP View: - Plant is a location which provides manufacturing facilities and
Manufacturing Requirement Planning

4. MM View:- Plant is a location where the material is stored 5. SD View: - Location from where the Goods/Services are distributed to
customer that is called Delivering Plant.

6. One company code has more than one plant but one plant can belongs or 7. 8. 9. 10.
assigned to only one company code When Sales Organization and Distribution Channel (Distribution Chain) assigned to Plant then it will become Delivering Plant. One plant can supply goods and services to more than one sales organization in different channel by assigning plant to several distribution chains. In case intercompany sales process Plant can assigned to distribution chain which may belongs to different company code. Plant plays an important role in the following areas: a. Material valuation may be at Plant level or company code level b. Inventory management c. The material stocks are managed within a plant. d. Production e. MRP:- Material Requirement Planning f. Costing valuation prices are defined only within a plant. g. Plant maintenance Attribute of Plant a. It has its own address and factory calendar. b. A plant has an address. c. A plant has a language. d. A plant belongs to a country e. Length is four Character Alpha-numeric Key Table

11.

12.

a. Define Plant (T001W)

Storage Location

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Storage Locatio is the physical location inside a plant where stocks are stored. More than one storage locations can exist within one plant. As it is a physical location so it cannot belongs to more than one plant. Each item must have a storage location One material can be stored in many storage locations. Stocks are managed only on a quantity basis and not on a value basis at storage location level. Its creation and assignment with plant both activities are happen during Definition of Storage location. 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. Address of storage location can be maintained which is optional. Length is four alpha numeric characters.

Shipping Point

1. 2. 3. 4. 5. 6. 7. 8.

9.

Shipping point is highest level organizational unit in shipping. It may be your depot or gate of the Plant etc Delivery process initiated from exactly one shipping point. Shipping point is subdivided into loading points. One Shipping point can be used by several plants which may be belongs to different company code that so shipping point is client level organizational unit. Shipping point can be found in shipping tab page of each and every line item of sales order Plant is main factor to determine shipping point (Plant, shipping condition and loading group) Attribute of shipping point a. Its length is four alpha numeric characters b. A shipping point has an address c. It belongs to one country d. Factory calendar e. Loading, Picking and packing time is determined from shipping point during delivery scheduling. Table a. Define Shipping Points (TVST) b. Assigning Shipping Point to Plant(TVSWZ)

Assign Departure Country and Transportation Zone to Shipping point When we create new shipping point that time country and Departure zone is gray mode that mean system will not allow to fill these information during shipping point creation. T.Code :- [OVXD]- Define shipping point

Country and Departure zone both are appeared on basis of following configuration. T.Code:- [OVR1]:- Customer Transportation Zone Here we assign Transportation Zones with country

T.Code :- [OVL7]- Assign Departure country and Zone to shipping point.