Note on SAP Enterprise Structure at STAR

Note on SAP Enterprise Structure

One Time Validation with EC

Revisi
on

Issue
Date

Issue Purpose

Prepared

Reviewed
BTSC
(Pankaj
Dave / Rui /
Bharat
Sethi)

28.08.201
3

Initial Feedback

SPMO

30.08.201
3

Revised Draft

SPMO

C
Page 1 of 12

Approv
ed

Note on SAP Enterprise Structure at STAR

Table of Contents
1.

Context & purpose of this document...............................................................................3

2.

SAP Enterprise Structure under Implementation at STAR...............................................3

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Note on SAP Enterprise Structure at STAR

1 Context & purpose of this document

1.1.
The purpose of the document is to provide an overview of the
SAP Enterprise Structure for Reliance Industries Ltd which is
under implementation at STAR and get further validation and one
time decision on the key design elements.

2 SAP Enterprise Structure under Implementation at

STAR
1.2.
The RIL Enterprise Structure is divided into three main
categories
A. Financial

Enterprise

Structure

Elements

to

support

transactions related to finance, accounting and controlling.

B. Operational Enterprise Structure Elements to support
transactions

related

to

Sales,

Production,

Procurement,

Logistics and Warehousing.

C. People (i.e. Human Capital) Enterprise Structure Elements to
support employee and contractor-related transactions.

A. One Time Validation with EC Sales Organisation

1. SAP Definition & Role:
A Sales Organisation is a unit that defines the basic Sales and distribution
structure .It is responsible for the sale and distribution of goods and services.
Plays key role in:

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Note on SAP Enterprise Structure at STAR

a) Sales strategy for market penetration: To describe pricing and discount
mechanism for a given market unit.
b) Revenue Posting: The Sales organization along with other org units determines
the way revenue posting has to carry out for sales transactions.
c) Sales reporting: The highest level of Sales organization unit at which sales
reports and Profitability analysis reports can be aggregated.
d) Master data: To carry out sales transactions, required master data like
customer master, material master, rate master etc. must be created for a
given sales organization.
e) Intercompany sales & plant to plant stock transfer: Every plant is linked to an
owner sales organization for the purpose of inter-company sales or plant-toplant stock transfer.
f) Controlling user roles & authorizations
2. Business Drivers / Requirements at RIL:
Facilitate performance of above roles.
3. Various Options / Approaches:
A. Approaches at Global Oil & Gas Majors:
Approach 1:

Single Sales organization per Legal entity.

e.g.: Country Specific Marketing units.
Approach 2 :
More than one sales organization for the company code By Product
Liability
e.g.: Refining,Petro-Chemicals,Gas,Polymer
Products,Retailing.
Approach 3 :
More than one sales organization for the company code By
Legal /Regulatory Requirement.
e.g.: Domestic,EOU,SEZ.
B. Options deliberated at RIL STAR:
a. Option 1:
One or More Sales organizations for the company code By Legal
/Regulatory Requirement
b. Option 2:
More than one sales organization for the company code By Product
Liability
C. SAP Recommendation / Best Practices:

Recommendation is based on different legal needs in India to

differentiate DTA and SEZ.
4. Design at STAR (currently under Implementation):
Option 1 Except RIL all other legal entity to have one sale organisation
5. As-Is Design:
Three Sales Organisations for RIL
Other Company codes :One Sales Organisation
Alpha / Numeric.
6. Complexity to Alter (High / Med / Low): High

7. Detailed List of Elements (pl refer attached excel):

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Note on SAP Enterprise Structure at STAR

Sales
Orgns._STAR.xlsx

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Note on SAP Enterprise Structure at STAR

B. One Time Validation with EC Distribution Channel
1. SAP Definition & Role:
Distribution channels are means through which materials reach the customer.
Plays key role in:
a. Sales strategy for distribution: Distribution channel is an element which plays
role to describe pricing, and discount mechanism for a given market unit. The
distribution channel can also influence calculation of taxes
b. Revenue Posting : The Distribution channel along with sales org units
determines the way revenue posting has to carried out for sales transactions
c. Sales reporting : Distribution channel is second level of reporting of criteria in
standard sales reporting and can be used for reporting in Profitability analysis
and user defined analysis
d. The material master is maintained for combination of sales organization and
distribution channel. The customer master and major pricing related master
records are maintained in combination of sales org, distribution channel and
division
e. Intercompany sales & plant to plant stock transfer: Used to identify stock
transfer and inter company sales transactions. To get actual revenue, the
related party sales and stock transfer etc. can be eliminated using distribution
channel as filter
f. Distribution channel is parameter to control user roles & authorizations
2. Business Drivers / Requirements at RIL:
Facilitate performance of above roles.
3. Various Options / Approaches:
A. Approaches at Global Oil & Gas Majors:
Approach 1: Way used to distribute/sell products
e.g : Domestic, export, stock transfer, retail etc
Approach 2: Way products are marketed
Retail fuel sales, kero sale,
Industrial sale to Industrial customers, sales to Govt
bodies, etc Trading Export sale, sale to customer,
B. Options deliberated at RIL STAR:
a. Option 1:
Way used to distribute/Sell products
b. Option 2:
Way products are marketed
C. SAP Recommendation / Best Practices:

Recommendation is to define considering the way to distribute/sell

products.
4. Design at STAR (currently under Implementation): Option 1 Way used to
distribute / sell Products
5. As-Is Design:
Indicates the Way to distribute/Sell products
Convention is Alpha.
6. Complexity to Alter (High / Med / Low): High

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Note on SAP Enterprise Structure at STAR

7. Detailed List of Elements (pl refer attached excel):

Dist.channels_STAR.
xlsx

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Note on SAP Enterprise Structure at STAR

C. One Time Validation with EC Division
1. SAP Definition & Role:

A division can be used to segment a business into product lines.

Plays key role in:
a. Sales strategy : Based on division the marketing strategy for distribution and
pricing structure can be different
b. Revenue Posting : The revenue break up by group of product can be met with
different divisions
c. Sales reporting : It is used as the third level reporting criteria in standard Sales
Information Systems reports and can be used for reporting in Profitability
Analysis (CO-PA) and User-defined Analysis
d. Each material will belong to only one division. The customer master and
pricing related master records are maintained in combination of sales org,
distribution channel and division
e. Division can be used to differentiate set of users who are authorized to handle
a given set of products
2. Business Drivers / Requirements at RIL:
Facilitate performance of above roles.
3. Various Options / Approaches:
A. Approaches at Global Oil & Gas Majors:

Approach 1 :

Product group specific

e.g : crude, chemicals, fuel, services, lubes

Approach 2 :

Product line specific

e.g : natural gas, Gasoline, diesel, Aviation fuel,
Polyproplene, PSF

Approach 3: Product specific

e.g: Crude oil, HSD, LPG, Naptha, Propane,
sulphur, benzene
B. SAP Recommendation / Best Practices:

For every product line a corresponding SAP division to be created.

4. Design at STAR (currently under Implementation): Hybrid approach At

Star we are using Product specific Divisions e.g. ATF, Product Line Specific
Divisions PP, PSF and Product Group specific divisions e.g. Lubes, Tyres etc.
5. As-Is Design:
Segmentation on Product Lines
Product wise
Convention Alpha
6. Complexity to Alter (High / Med / Low): High

7. Detailed List of Elements (pl refer attached excel):

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Note on SAP Enterprise Structure at STAR

Sales
Divisions_STAR.xlsx

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Note on SAP Enterprise Structure at STAR

D. One Time Validation with EC Sales Office
1. SAP Definition & Role:
A sales office can be viewed as a regional or management reporting function. A
Sales Office is assigned to sales areas.
Plays key role in:
a) Sales Reporting requirements.
b) Sales planning and forecasting requirements.
2. Business Drivers / Requirements at RIL:
Facilitate performance of above roles.
3. Various Options / Approaches:
A. Approaches at Global Oil & Gas Majors:

Approach 1:

Based on Businesses
e.g : Fuel Retail, Industrial Marketing, Lubes,

Petro-chemical
Approach2: Sales Office By Location
e.g : Mumbai, Kolkatta, Chennai, New Delhi
B. SAP Recommendation / Best Practices:
Location specific sales office considered
4. Design at STAR (currently under Implementation): Location Specific sales
offices are considered for STAR Project. E.g. Mumbai Sales Office, Delhi Sales
Office, Gujarat Sales Office, Exports Sales office etc.
5. As-Is Design:
One Sales Office for every physical location of RIL Sales Office.
Coding Convention is Alpha
6. Complexity to Alter (High / Med / Low): Low

7. Detailed List of Elements (pl refer attached excel):

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Note on SAP Enterprise Structure at STAR

Sales
Offices_STAR.xlsx

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Note on SAP Enterprise Structure at STAR

E. One Time Validation with EC Sales Group
1. SAP Definition & Role:
A sales group is a geographic group of employees. A sales Group is assigned to
Sales Office.
Plays key role in:
a) Grouping a set of employees under a Sales Office.
b) Sales Reporting requirements.
c) Sales planning and forecasting requirements.
2. Business Drivers / Requirements at RIL:
Facilitate performance of above roles.
3. Various Options / Approaches:
A. Approaches at Global Oil & Gas Majors:
Approach 1 :
Based on Territory mapping
e.g : north , south, east west
Approach 2 :
Based on Product
e.g: petroleum products, petrochemical
Approach 3:
Based on Industry specific
e.g: pharma, retail, construction
B. SAP Recommendation / Best Practices:
Recommendation is based on Employee Group wise
4. Design at STAR (currently under Implementation):
Definition is based on territory mapping
5. As-Is Design:
Currently Used in Textiles Division which is product specific
Alphanumeric Convention
6. Complexity to Alter (High / Med / Low): Low

7. Detailed List of Elements (pl refer attached excel):

Sales
Group_STAR.xlsx

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