Enterprise Structure SAP S/4HANA Sourcing and ProcurementBusiness Scenario for Sourcing and Procurement * We are implementing SAP S/4HANA Sourcing and Procurement for a UK company “Tools ABC” whose head office is in United States * It is a US-based company, but it also operates factories in UK, Germany and China * Its industry or domain is Manufacturing * It manufactures Power Tools or DIY Tools for the construction and woodworking industries * Its products include drill machines, hammers, saws and angle grinder * The company wants to understand how their existing business processes will be mapped into SAP S/4HANA Business SuiteBusiness Scenario for Sourcing and Procurement * For Sourcing and Procurement, it should have two different Factories for UK company * A single Purchasing department is responsible for procurement activities for both factories + The Company Buyers are responsible to carry out all the purchasing activities * Each Factory should have two different Storage locations/warehouses; one near the Airport and one near the Company’s location * In all other Companies especially in US company, it should have one Factory and ‘one Purchasing department * The UK company transfers its stock to US company, so the configuration in SAP should also be made for Inter-company purchases and Stock transferEnterprise Structure Enterprise {Corporate Group) Company Subsidiary Buyer Buyer Storage Location/ Warehouse SAP Mapping Plant Purchasing OrganisationSAP Mapping for Sourcing and Procurement + For Sourcing and Procurement in our UK company, it should have two different Plants + A single Purchasing organization is responsible for procurement activities for both plants or in other words, it should have the Cross-Plant Purchasing scenario + Several Purchasing groups need to be created representing individual Buyers or a single Team responsible to carry out purchasing activities for the company + Each Plant should have two different Storage locations; one near the Airport and one near the Company's location * Inall other Company codes especially in US company, it should have one Plant and one Purchasing organization + The UK company transfers its stock to US company, so the configuration in SAP should also be made for Inter-company purchases and Stock transferSAP Mapping * Create the Client if it is not already created * Create a UK company code by copying the SAP standard template for GB company code * Create a business area for each product line * Create a company for internal trading operations * Assign the company code to the company * See the relevant table information through the T-code: SE16NEnterprise Structure 3.digit numeric key Transaction code: SCC 1D 6-igit alphanumeric key Transaction code: 0x15 Company Code UK-—GBO1 TUKL 1D 4.digit alpha-numeric key Q Transaction code: 0x02 O Table: To01 0 Created at Client Level OF A-digit alpha-numeric key O Table: Tes Business AreaCompany Code * Represents an independent balancing / legal accounting entity and is used for external purposes e.g., a company with independent accounts within a corporate group * Financial Statements required by law can be created at company code level + Aseparate company code is usually created per country in order to fulfill the legal requirements such as taxation etc. * To create a company code, copy an existing company code template. This copies the Definition, Global parameters, Customizing tables, GL accounts and Account determination * Its Table: T001 can be viewed through T-code: SE16N to display the list of information + Transaction code: OX02 + Menu path: Display IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company CodeBusiness Area Represent separate areas of operation within an organization and can be used across company codes Balancing entities that can create their own set of financial statements for internal purposes Possible to save and evaluate transaction figures for each business area The use of business area is optional A Business area is not assigned to a company code directly. It can be a picked up as a combination in the master data or transactional data Table: TGSB can be viewed through T-code: SE16N to display the list of information Transaction code: OX03 * Menu path: Display IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Define Business AreaDefine Company * Acompany consists of one or more company codes * It is also considered for consolidated reporting * It represents a Business Organization for which individual financial statements can be created according to the relevant commercial law * It is necessary to maintain for internal trading or intercompany transactions * Transaction code: OX15 * Menu path: Display IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Define companyTypes of Projects * Greenfield Implementation Project + SAP S/4HANA is implemented as a new ERP system for an Organization replacing the old one Roll-out Implementation Project * SAP implementation is done for an Organization in one country and that the same : implementation template is rolled out globally to other companies for the same organization located in different countries and then country specific changes are made such as local taxation rules etc. * Brownfield Implementation Project * SAP ERP is migrated to SAP S/4HANA without re-implementation and without disruption to existing business processes * Support Project + SAP system is already implemented, and now the support is provided in case of any errors / issues or any change requests are made by the Business Users * Upgrade SAP Version * An Organization wants to upgrade its SAP S/4HANA from 1809 to 1909Blueprint Documentation and GAP Analysis * Blueprint Documentatio! PDD Process Definition Document COE Configuration Object Element (Global) csD Configuration Specification Document (Regional / Local) [ERG BS Functional specification [Bi technical specification © Gap (© If any Organization's business requirement cannot be met with the standard functionality of SAP system (© GAP analysis is usually documented with the reference of WRICEF which stands for Workflow, Report, Interface, ‘Conversion, Enhancement and Formsyay. Customizing Requests Transport organizer — “= T-code: SEO9Enterprise Structure - Logistics General ConfigurationValuation Area * You define the valuation level by specifying the level at which material stocks are valuated. You can valuate material stocks at the following levels: * Plant level: + Valuation must be at this level in the following cases: + Ifyou want to use the application component Production Planning (PP) or Costing + Ifyour system is a SAP Retail system * Company code level: * The decision you make is valid for the whole client. You are recommended setting material valuation at plant levelPlant * Definition: * It is an independent, physical and highest organizational unit in MM module * It can be operational unit or manufacturing unit or a sales branch of an organization. From material management view, it can be defined as a location that holds valued stocl * Itis an organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects * It isa place where either materials are produced or goods and services provided * It is unique in a client and can only belong to one company code * Use: * For the placement of materials in storage (stock put-away), a storage location is assigned to a plant. The storage location depends on the storage condition and the placement situation * The business area that is responsible for a plant is determined as a function of the division. As a rule, a valuation area corresponds to a plantSAP Mapping for Sourcing and Procurement + For Sourcing and Procurement in our UK company, it should have two different Plants + A single Purchasing organization is responsible for procurement activities for both plants or in other words, it should have the Cross-Plant Purchasing scenario + Several Purchasing groups need to be created representing individual Buyers or a single Team responsible to carry out purchasing activities for the company + Each Plant should have two different Storage locations; one near the Airport and one near the Company's location * Inall other Company codes especially in US company, it should have one Plant and one Purchasing organization + The UK company transfers its stock to US company, so the configuration in SAP should also be made for Inter-company purchases and Stock transferEnterprise Structure with Plant | | | | | | l Storage Storage Storage Storage Storage Location 1 Location 2 Location 1 Location 1 Location 2 | | | Warehouse UKDivision * The division is one of the organizational units in Sales & Distribution and is also required for business area account assignment for logistics transactions in Financial Accounting * The business area for the material is determined via the plant and the division defined in the material master record. * Division is products or range of products or a group of products * Divisions assign to the Sales Organization and multiple divisions can be assigned to Sales Organization. Materials or products always belong to one divisionEnterprise Structure - Sales and Distribution ConfigurationBusiness Scenario for Sales and Distribution * For Sales and Distribution in our UK company, there should be one Sales Organization, 2 Distribution Channels — Wholesale and Retail * In all other Company codes especially in US company, it should have a separate Sales Organization * The UK company sometimes transports its stock to US company with Delivery and Billing options, so the configuration in SAP should also be made for Inter-company purchases and Stock transferEnterprise Structure — SAP S/4HANA Sales son ‘Shipping Point UK ee ed Warehouse UK Warehouse USEnterprise structure/Sales Organization hierarchy eee Distribution Channel DivisionEnterprise structure/Sales Organization hierarchy Channel Division.Integration of SAP S/4HANA Finance & Controlling with Sales & Distribution (SD) - Enterprise Structure * Assign Sales Organization to Company Code * Transaction code: OVX3 + Menu path: Display IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Assign sales organization to company code * This establishes a link between the SD and Fl systems. A sales organization belongs to just one company code * Business area account assignment + Transaction code: OVF2 + Menu path: Display IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Business Area Account Assignment -> Define Rules By Sales Area * Both revenue accounting in Financial Accounting and value postings for goods movements in Inventory Accounting can be represented separately for each business areaIntegration of SAP S/4HANA Finance & Controlling with Sales & Distribution (SD) - Business Area Account Assignment * Business area account assignment + Transaction code: OVF2 * Menu path: Display IMG -> Enterprise Structure -> Assignment -> Sales and Distribution -> Business Area Account Assignment -> Define Rules By Sales Area * Both revenue accounting in Financial Accounting and value postings for goods movements in Inventory Accounting can be represented separately for each business areaEnterprise Structure - Materials Management ConfigurationSAP Mapping for Sourcing and Procurement * For Sourcing and Procurement in our UK company, it should have two different Plants * A single Purchasing organization is responsible for procurement activities for both plants or in other words, it should have the Cross-Plant Purchasing scenario * Several Purchasing groups need to be created representing individual Buyers or a single Team responsible to carry out purchasing activities for the company * Each Plant should have two different Storage locations; one near the Airport and one near the Company's location * Inall other Company codes especially in US company, it should have one Plant and one Purchasing organization * The UK company transfers its stock to US company, so the configuration in SAP should also be made for Inter-company purchases and Stock transferPurchasing Organization * A purchasing organization is an organizational unit in SAP S/4HANA Sourcing and Procurement, subdividing an enterprise according to the requirements of purchasing * It procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions * The organizational elements for Plant and Purchasing Organization are mandatory for external procurementPlant-specific Purchasing Organization === Plant — Plant 2 sora sn sre a aie Location 1 Location 2 Location 1 Location 1 Location 2Cross-Company code Purchasing Organization —<— | ! | og Storage Storage Storage Storage Storage Location 1 Location 2 Location 1 Location 1 Location 2Reference Purchasing Organization i = | | Storage Storage Storage Storage Storage Location 1 Location 2 Location 1 Location 1 Location 2 huPurchasing Groups (Configuration) SAP S/4HANA Sourcing and Procurement@: Purchasing Groups * A purchasing group is a key for a buyer or group of buyers in SAP S/4HANA Sourcing and Procurement * It is responsible for the procurement of a material or class of materials, and is the principal channel for a company's dealings with its suppliers * It is maintained at Plant level in the material master * Transaction code: OME4 * Menu path: Display IMG -> Materials Management -> Purchasing -> Create Purchasing Groups