Enterprise Structure – Financials and Logistics Flashcards
Name of the Enterprise Structures
- Financial & Logistics
- Manufacturing Execution
- Sales & Distribution
- SAP ERP Human Capital Management (HCM)
Processes for Financials and Logistics
- Plant→Company’s Code
- Plant→Purchasing Org→Company’s Code
- Plant→Sales Organisation->Company’s Code
- Controlling Area
- Operating Concern
What is Plant?
It is an Organizational Unit that subdivides an enterprise into procurement, production, materials planning.
The system defines a plant in the client using a four-character alphanumeric key.
A plant is a place where materials are produced, or goods and services are provided. A plant is assigned to a company code.
What does a plant represent?
Entities such as:
1) Production Facility
2) Centralized Storage Location
3) Regional Sales Office
4) Corporate Headquarters
5) Maintenance Location
What is a Storage Location?
It is an organizational unit that facilitates the differentiation of stocks of materials in a plant.
The system defines a storage location using a four-character alphanumeric key. Each storage location has a unique key.
What is a Purchasing Org?
It is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements.
Purpose of Purchasing Org
It is responsible for procuring materials or services and negotiating the conditions of purchase with vendors, and assumes responsibility for the purchasing activities.
What is a Purchasing group?
It is a key to represent a buyer or group of buyers responsible for certain purchasing activities.
Purpose of Purchasing Group
Internally : It is responsible for the procurement of a material or class of materials.
Externally:
the purchasing group supplies the contact person for vendors. The purchasing group is not assigned to other units in the company structure.
What is Sales Organization?
A sales organization is an organizational unit that is used in sales order management.
What is a Company’s Code?
A company code is an independent accounting unit.
Purpose:
To prepare financial and profit and loss (P&L) statements at the company code level to meet legal reporting requirements.
Purpose of Business Area
To group strategic business units for reporting financial and P&L statements.
BAs can also group business units that are associated with different company codes.
What does BA suitable for?
Reporting Purposes and not Auditing.
What is the Controlling Area?
It is the basic organizational unit in Management Accounting and closed entity that is used for cost accounting
Purpose of CA
allocate costs only within a CO area. These allocations do not affect objects in other CO areas
