Ever Heard of Enterprise Structure of SAP? Here is what it Means- Part 1

You might have come across the term ‘enterprise structure’ when talking or reading about SAP. For all those who do not know what this term exactly means, we will help you in understanding so. SAP enterprise structure is nothing but an organizational structure that gives the representation of an enterprise in SAP R/3 system. It is comprised of organizational units that are grouped together owing to factors like legal functionalities, business-related purposes, etc. These units often include profit centers, company entities, etc. Organizational units might be assigned to a single module or multiple modules. In this blog, we will discuss about single module organizational unit-SAP Sales & Distribution module offered by SAP solution providers in India.

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Components of Sales & Distribution Module

  • Client

It is an independent organizational unit that is considered to be another name of a group. It is a self-contained technical unit that contains tables and data used in the organizational structure at its level. The client holds the highest level in the Enterprise Structure and several company codes can be assigned to it.

  • Company Code

It is a legal entity that is considered as an independent accounting unit.The profit and loss account and balance sheet are created at the level of company code. It is an organizational unit prepared by the FI. When it comes to the assigning of company code, several company codes can be assigned to a client. For all these company codes, the same chart of accounts will be created.

  • Sales Organization

It is an organizational unit of the logistics which has the role of grouping the enterprise on the basis of the requirement of Sales and Distribution. Its basic role is distributing the goods and services. It is liable for selling products, negotiating the sales condition as well as for the recourse of customer’s rights. A company code can have more than one sales organization that will be uniquely assigned to it. Since sales organization can be assigned to more than one plant, this kind of assignment will not be unique and therefore, several sales organizations are assigned to a single plant.

That’s it for today folks. Stay tuned for knowing the further architectural components of the SAP in our next article-Ever Heard of Enterprise Structure of SAP? Here is what it Means- Part 2. For more information about SAP, you can visit the official website of Aarav Consultants, a SAP consulting company in India.


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