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Organizational Elements


The highest-
level element
of all
al elements

It represents
the enterprise
Organizational Elements (cont.)

 Controlling Area
the controlling area represents a closed system used for cost
accounting purposes within an organization
 Company Code
The company code is a legal accounting unit representing the
central organizational element of financial accounting
The company code also represents the tax law(national) view
of the company, the fiscal calendar, the local currency and the
tax reporting requirements
 Plant – pusat produksi
a plant can manufacture product, distribute product, or
provide a service; it is the central organizational unit of
Organizational Elements (cont.)

 Storage Location
Material stocks in inventory management ca be
differentiated within one plant according to storage
location  SAP: 0001, 0002
 Sales organization –cabang penjualan
the sales organization is the central organizational
element in sales order management that controls the
terms of sale to the customer
 Distribution Channel
distribution channels can be used to define how different
products reach consumers, for example: wholesale
Organizational Elements (cont.)

 Organizational unit
organizational units describe the various business units
that exist in an enterprise. Often units are loosely defined
as functional or regional departments
 Position
positions are the individual employee assignments in the

Perusahaan menggunakan/implementasi SAP,

organization structure/organizational elements inilah
yang harus ditentukan pertama kali
(International Demonstration and Educational System)

 IDES is an international company dependent upon

collaboartions with external business partners and a
global outlook

IDES Holding Company

IDES (cont.)

 IDES AG is a manufacturing company, it operates

worldwide and has a number of subsidiaries
- this company processes are using during this
training course to demonstrate the solutions
provided by SAP
- as a model company, IDES has a large number of
business branches and branch specific subsidiaries
- business processes are fully set up and include all a
core areas, such as purchasing, sales, marketing
and manufacturing
IDES (cont.)
 The scenario for the IDES:
as an international company, IDES has several holdings
and requires the ability to report to shareholders on an
international bases
produces many
Products are
at a number of
Global planning
ensures that
deliveries are made
from the nearest IDES AG
distribution center
The scenario for the  Customers and
interested parties have
IDES (cont.) access to information
about IDES products,
A user-friendly interface and a accessories, services on
product search function make it easy the IDES company’s
for customers to create purchase
home page

IDES employees can access

personnel records from an
internet portal and make changes
to their benefits, as well as buy
office supplies and assets billabel
to their cost centers
System-Wide Master Data Concepts

 In SAP, master data is created centrally and available

to all applications and all authorized users
centrally stored master data means data records are
always consistent, up to date and free of redundancy
 All areas can use the store data, including sales,
purchasing, inventory management, materials
planning, invoice verification, finance and human
 The three-part structure of master records makes it
possible to flexibly depict the various organizational
structures of an operation
System-Wide Master Data Concepts (cont.)
 Customer Master

a customer master contains key information that defines the business relationship
between a company and its customer
Company code data controls the posting procedure and subsequent processing, such as
payments and dunning
Sales organization data provides information on customers for support execution of such
business processes as entering sales orders, shipping, billing and processing payment
The customer master’s “three-part structure” is represented by:
This data is
equally relevant to
every company
code and every
sales organization
within a company

This data reflects

agreements with the
This data has different
characteristics for a
company’s sales
organization and
System-Wide Master Data Concepts (cont.)

 The material master contains all of the key information a company needs to
manage a material within its organization
 The material master defines, among other thins, how a product is sold,
manufactured, purchased, inventoried, accounted, and costed
 The information in the material master is grouped into views that are
organized by business function

majority of
the views in
master are
at plant
 Personnel File
System-Wide Master Data Concepts
personnel file are master data
(cont.) records used primarily mySAP ERP
Human Capital Management
Organizational units describe the various These master records follow the
business units that exist in your enterprise  same basic three-part structure as do
can be defined as functional or regional other master records
departments, or as project groups, depending
on the type of organization
The organizational elements used by
mySAP HCM are unique and as a
group, they are referred to as
Organizational Management
Jobs serve as description,
or templates, that apply to
several positions with
similar requirements, tasks
or other characteristics
Position are the
individual employee
assignments in the
enterprise  persons
occupy positions

Persons hold positions

within the
organizational structure
 represent employees
in company
 Transaction are application programs that execute business processes in the SAP system

 Whenever possible, master data is copied during transaction processing  avoiding re-entry
 When performing each transaction, applicable organizational elements must be entered, for
example: by specifying the sales organization information, the appropriate sales group is
given credit for the sales activity; similarly, the designation of the plant, storage location
determines product sourcing

Whenever a
transaction is
executed in the
system, a document
is created
Test your knowledge

 Organizational elements define a company’s enterprise

structure within the SAP system either for legal and/or
business-related purpose (True or False ?)
 Which of the following are examples of organizational
company code, client, plant, all ?
 Transaction are application programs that execute
business processes in the SAP system (True or False?)