2. Enterprise Structure

The organizational data reflects the structure of the (Client) business. Every
transaction occurs within this structure; we must set the Enterprise Structure of
the client before we process S D transactions.
Eg. Without a sales area it is not possible to create a sales order in SAP.

2.1 Defining of Customized Enterprise Structure:

Company Code: -
The company code is a legal entity, which takes care of the business process of a company.
NOTE: - 

1. Company Code is defined in FI Module.
2. FI is the first module to be started in SAP implementation.

2.1.1 Defining Sales Organization: - [OVX5]

Sales Organization: -
Specifies the responsible organization unit, which takes care of the sales & distribution process in the company.
SPRO -> Enterprise Structure -> Definition -> Sales & Distribution -> Define Copy, Delete, and Check Sales organization

Go to Copy Organizational Object [F6]
1) In the field from sales organization, specify an existing organization, in the field
To sales organization specify the required new sales organization.
2) Come back to the previous screen, go to defined sales Orgn & go to details
enter the Values for the fields; Description, Currency, S.Orgn Calendar – 01.
3) Select the Address icon (on Top) and maintain the corresponding details.

Statistics Currency: -
The currency that is proposed as default currency when statistics is generated for the sales organization.

Rebate Process Active: -
If a sales organization wants to give rebates to their customers this field has to be checked.

Sales Orgn Calendar:
Specifies the working day/Holiday calendar for the sales organization.

2.1.2 Creation of Distribution Channel & Division:

Defining Distribution Channel: - [OVXI]
Specifies the channel through which the goods & services are delivered to the customers.
Eg: - Direct Sales, Internet Sales, W. Sellers, Tele Sales & Retailers.
SPRO -> Enterprise Structure -> Definition -> Sales & Distribution -> Define Copy, Delete, Check Distribution Channel

Copy, Delete, Check Distribution Channel [EC05]
Go to Copy Organizational Object [F6], Come back [F3]
Go to Define Distribution Channel [OVXI]

Divisions: -
Specifies the range of products or services for which the company is doing the sales.

SPRO -> Enter prize structure -> Definition -> Sales and Distribution -> Define copy delete check Division (EC06)

2.1.3 Defining Sales Office and Sales Group:

Sales Office: -
It is the Geographical aspect of the structure (it is like the same as branch office)

SPRO -> Enterprise-structure -> Definition -> Sales and Distribution -> Maintain sales Office

Sales Group: -
The employees working under the sales office can be divided into different sales Groups, based on their functions.

SPRO -> Enterprise-structure -> Definition -> Sales and Distribution -> Maintain sales Group

2.1.4 Defining Plant, Storage Location and Shipping Point

Plant: -
The factory or the manufacturing unit is called as plant in SAP.

SPRO -> Enterprise-structure -> Definition -> Logistic General -> Define copy delete check Plant

Storage Location: -
A storage location is the place within the plant where we can store the goods. Each plant has at least one storage location assigned to it.

SPRO -> Enterprise Structure -> Definition -> Material Management -> Material Storage location
(Give the plant name and define the storage location)

Relationships: -
Company code to Sales Organization: -
One company code can have many sales organizations. But one Sales Organization has to be assigned to one company code. So the relationship is One to Many.

Sales Organization to Distribution channel: -
One Sales Organization can have many distribution channels. One Distribution channel can be assigned to many sales organizations, so the relationship is Many to Many.

Sales Organization to Division: -
One Sales Organization can have many divisions & one division can be assigned to many sales organizations. So the relationship is Many to Many.

Distribution channel to Division: -
One Distribution channel can have many divisions. One division can be assigned to many Distribution channels. So the relationship is Many to Many.

NOTE: - 

• If sales Organization wants to use a plant that plant must be Assigned to the Sales Organization.

Sales Area: -
The combination of Sales Organization, Distribution channel and Division is called as Sales Area.

Sales Line: -
The combination of Sales Organization and Distribution channel is called as sales line.
2.2 Definition & Assignment of Elements:
Definitions: -