business relation

8/2/2019 Business Relation

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Direct Assignment of Relationships

This section addresses those organisation structure relationships thatare directly assigned in the SAP configuration. IE via "IMG...Enterprise

Structure /Assignment".

It may not look like it, but this is actually quite easy except for a coupleof areas with a lot of flexibility (and remember: flexibility = complexity).Let's get it over with quickly and then get down to the more interesting(difficult or non-obvious ?) integration. To make it even easier I havedivided the relationships between the:

core / essential relationships that you should understand oraddress as a first priority and the

secondary relationships (or module specific ) ones you can

worry about later if you need to.

I have also grouped the relationships in what I hope is more logical(since FI is where most of the integration is heading (because of thefinancial postings) I have sorted by FI elements and listed them first.Apart from that you should still be able to follow along fairly easily in theIMG - or if you have the R/3 Library CD ROM follow along there (underImplementation Tools / Implementation guide).

Table of Direct Organisation Structure Relationshipsmaintained by "IMG...Enterprise Structure

/Assignment"

Module/module Element 1 Element 2 Relationship Comment

Core or Primary Relationships:

Financials, Controlling, Treasury

FI / COCompanycode

ControllingArea

many to one

This is a no-brainer. Howeverif you havecomplex currency /

organisationreportingrequirements thenyou shouldprobably read theIMG help carefullyand test out yourscenarios beforeconfigurers get toofar down the track.

FI / TR Companycode Financialmanagement many to one Even if you are notreally using


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area

Treasury, you maywant to assign thisto use the Basicfunctions(useful ifusing AR, AP and

doing banking)

CO /CO-PA

ControllingArea

OperatingConcern

many to oneOnly required ifusing CO-PA

CO / TRControllingArea

Financialmanagementarea

many to one,usually onlyone eachthough

All company codesassigned to thecontrolling areamust also beassigned to theFinancialManagement

Area. Required ifcosts etc needed inTR.

Logistics (Materials Management and Sales and Distribution)

LO / FI PlantCompanyCode

many to one

Required so thesystem knowswhich legal entityto post financialstock values.

SD / FI

Sales

Organisation

Company

Code many to one

SD / SDDistributionChannel

SalesOrganisation

many tomany

LO / SD DivisionSalesOrganisation

many tomany

SD / SD Sales Areas many tomany

This is a uniquesetup. A salesarea is not a neworganisationelement, butdefines a validcombination ofSales Organisation/ DistributionChannel / Division.This is how youcontrol whatproducts can besold by whatmethods of

delivery and bywhich selling
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groups. This alsohas a significantimpact on thecustomer masterdata requirements.

MM / FIPurchasingOrganisation

CompanyCode

many tomany or none

optional - if thecompany code isnot assigned it willbe determinedfrom the plant.This allows thesetup ofpurchasingresponsibility

corporatewide

bycompany or

by plant

Human Resources

HR / FIPersonnelArea

CompanyCode

many to one

Required so thesystem can postfinancial impact of

HR postings.Note thatpersonnel areas indifferent countriescannot map to thesame companycode. It is usualthat differentcountries wouldhave differentcompany codes

(legal entities)anyway.

Secondary Relationships:

Financials, Controlling and Integration with FI/CO

FICompanycode

(group)company

many to one

optional - can dofinancialstatements bygroup company,however can alsojust use ranges or

selections ofcompany codes.
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FICompanycode

Credit ControlArea

many to one

optional - onlyrequired if usingcredit managementor creating thecredit management

section of thecustomer master.

FI / EC-CS orFI-LC

Businessarea

Consolidationbusinessarea

many to one

Only required ifusing theconsolidationmodules.

FI / SD BusinessArea (Rule1)

Depends onrules chosenfor eachSales Area

many to one Here we havegreat flexibility =some complexity -worthy of a

separateSD/Business Areapage to explainwhat's possible.Briefly for eachSales Area youcould specify :

Rule 1: Byplant anddivision

Rule 2: Bysales area

Rule 3: Bysalesorganisation, distributionchannel anditemdivision.

Note thatthe itemdivisioncould bedifferentfrom theDivision inthe SalesArea.Divisionsare a little

'strange' inLogistics -
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they haveeither asales SDemphasis or

a productMMemphasis.

LO / FI

If ValuationLevel =Companycode, thenPlant /ValuationArea

BusinessArea

many to one

Only required toenable automaticbusiness areaaccountassignment. Ifyou are valuingstocks at a

company codelevel, you can mapeach plant to abusiness area.Note the ValuationArea is then thecompany code. Itis confusing Iknow!

LO / FI

If ValuationLevel =Plant, thenPlant

BusinessArea

many to one

Only required toenable automaticbusiness areaaccountassignment. Ifyou are valuingstocks at a plantlevel, you can mapeach plant anddivision (essentiallygroupings ofproducts) to a

business areaLogistics / Sales and Distribution

SD / SDSalesOffices

Sales Areasmany tomany

Optional. Used asdefaults only. Notesales office isusually ageographicaldistinction.

SD / SD SalesGroups

Sales Offices many tomany

Optional. Salesgroups are

responsibilitygroupings rather


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than geographic.

LO / SD Plants

SalesOrganisation

/ Distributionchannel

many to

many

Essentially defineswhich sellingorganisations can

sell, by whichmethods out ofwhich plants

SD / LOShippingPoints

Plantsmany tomany

Defines whichplants can shipfrom whichlocations

Materials Management

MM /MM PurchasingOrganisation Plant many tomany

Allows a variety ofpurchasing

responsibilities andgives control overwho can buy forwhere.

MM /MM

Standard orReferencePurchasingOrganisation

Plant one to many

The system willuse the informationassociated withthis purchasingorganisation forsourcedetermination of

materials.

MM /MM

PurchasingOrganisation

Standard orReferencePurchasingOrganisation

many to one

Allows use of thecontracts etcnegotiated by thispurchasingorganisation as areference ifanother purchasingorganisation isbuying.

WM / IMWarehousenumber

Plant /StorageLocation

one to one

Defines whichstorage locationsare controlled bythe warehousemanagementsystem.

Plant Maintenance

PM / PMMaintenancePlant

MaintenancePlanning

Plant

many to one

Defines whichplants do theplanning of

maintenance forother plants.


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Human Resources

HR / FIEmployeesubgroup

EmployeeGroup

many tomany

Determines thevalid combinationsfor the country

groupings

Determining the FI Business Area from SD- flexibilityand therefore complexity

There are 3 ways of determining the business area for an SD postingthat is trying to post to FI (ie when the system does the revenueaccount determination. You can define a different way for each SDSales Area. This means that you first have to tell the system which'rule' you want to use for which Sales Area.

Module/module

Element1 Element 2 Relationship Comment

FI / SDBusinessArea

Plant /Division

one to oneRule 1: By plant anddivision

FI / SDBusinessArea

Sales Area one to one Rule 2: By sales area

FI / SDBusinessArea

SalesOrganization,Channel and

item Division

one to one

Rule 3: By salesorganization,distribution channel

and item division.Note that the itemdivision could bedifferent from theDivision in the SalesArea. Divisions are alittle 'strange' inLogistics - they haveeither a sales SDemphasis or a productMM emphasis.

So for example we could have the following configuration :

Sales Area (SalesOrganisation, Channnel,Division)

Rule Plant or Division

BusinessArea

1000, 01 (internet), 01 (books)2 (salesarea)

n/a INET

1000, 01 (internet), 02 (music)2 (salesarea)

n/a INET

2000, 02 (retail), 03 (electronics) 1 (Plant / Sydney ELNS


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division)

(Electronicsin Australia)

KoreaELVC(Electronics

in Korea)

2000, 03 (wholesale), 05(speciality products)

3 (SalesOrganisation/ Channel /ItemDivision)

all itemdivisions

SPEC(SpecialityProducts)

It may look complex and cumbersome, but it will only be so if you havea complicated business and of course you want to have businessareas. If you have a fairly homogenous organisation, then at worst youwill have to put several partially repetitive entries in the configurationtable. With a bit of luck and a stable organisation you will never have tocome back to this !!

Table Describing how transactions and balances are

assigned to profit centres

ModuleElement /Item

Comment

Defaultanyunassigneditem

One of your first steps in PCA configuration is todefine the dummy profit centre. If the system atany stage cannot identify a profit centre fromyour configuration, then it will post to the dummyprofit centre instead.

CO ControllingArea

The first time you do anything in CO (IMG oruser menu), the system will prompt you to

choose a controlling area. This defines theenvironment for all further CO work. All profitcentres will therefore be created relative to oneand only one controlling area.

MM Plant /Material (seeSales Ordersubstitutionstoo)

The profit centre is defined on the materialmaster record in the Sales: General/Plant Dataor Storage views. Don't panic - there are tools todo 'fast assignment' of material masters by plantand then by material type, a material group or aproduct hierarchy. See IMG.


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These assignments are used :

to propose a default profit centre whenyou create a sales order item or a

production order (to eventually post therevenue or costs); or

to derive the profit center from thematerial master for internal goodsmovements (such as stock transfers orgoods issues) and profit-related postingsin Materials Management (such asinventory differences) if no otherassignment is available; or

when material stocks (raw material,finished and semi-finished goods) aretransferred to Profit Center Accounting(PCA can do some balance sheet itemreporting at period end).

SDSales Order

substitutions

The sales order default is taken from the profitcentre on the delivering plant / material mastercombination. If you do not want this, you candefine substitutions to override this. Asubstitution is basically where the system allowsyou to specify your own piece of conditional logic

to determine which profit centre to post to. Youcan base your conditions on a variety of fieldsavailable on the Sales Order. Usually used ifyou want to base your mapping on Saleselements rather than on products.

BusinessTransactions

- ignore !!

The next 4 menu options in the IMG are to dowith assigning an individual business transactionto the profit centre. This is something thatshould happen at the time of entering thebusiness transaction if it cannot be determined

from the default. Therefore for configurationpurposes, I suggest you ignore the "assign tosales orders, production orders, process orders,CO Production orders".

Master dataassignments:

The next 6 menu options in the IMG relate tomaster data assignment to a Profit centre.Basically the profit centre should be assignedwhen you create the master data record. Somespecial comments :

Cost Centre If not done manually, there is a 'create profitcentres' from cost centres program which willcreate an equivalent hierarchy for you - only


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really possible at start up of the system -thereafter manually maintained. I suggest that ifyou do have such a one to one mapping thenthe following is probable:

you have too many profit centres ornotenough cost centres - their businessdefinition should be different

if you are not using SD, then maybe youdon't need profit centres?

Fixed AssetsImplicitly assigned by assigning every asset to acost centre.

Assignments needed for Balance Sheet Items in Profit centres

FI AR DebtSystem will determine from the assignmentsmade on the Sales Order - similar to businessarea processing.

FI AP Payables

are assigned to the profit center of the materialordered for purchase orders to warehouse andto the profit center of the posting for orderswhich receive direct postings.

FI

OtherBalanceSheet Itemsnot in a

submodule

The profit centre is actually specified byindividual GL journal line item (like the businessarea). It is not possible (other than bysubstitution) to assign a GL account to a profit

centre.

COWork inprocess

Assigned via the relevant project or order.

AM/IM AssetsImplicitly assigned by assigning every asset to acost centre.

MMMaterialstocks

Assigned to profit centers via their masterrecords (see above)

Integration and Periodic Processing:

In this chapter I point out the periodic process that run across modules andthe organisation structure relationships that can be defined by the setup of theperiodic process. This is taking an 'integration' perspective and therefore
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does not include periodic processes within all modules (that is addressed ona module by module basis).

Module toModule

Process Comment

HR-Payroll to FI& CO

Payroll Run

Posts payroll (salary, wages, expenses,bonus etc) related costs to the appropriateGL accounts and cost collectors (costcentres, projects etc).

MM to FI & COInventoryRevaluation

Any changes to Stock Valuations

PP to FIWork inProcess

PP to FI & CO-PA

ProductionVariances

Posts variances from the production (product

cost) estimates or standards to the GLaccounts and to Profitability Analysis if realcosts are required (vs standard costs).Standard cost figures would have been usedto update Stock and Cost of Goods soldfigures when finished stock was issued fromthe production runs.

CO to CO-PA AssessmentsAllocates costs from cost centres toprofitability segments

AA to FI & CO DepreciationPosts asset depreciation values to the GLaccounts and to the owning cost centres.

FI to PCA

Profit Centreadjustment

Required if profit centres could not always bedetermined (as with taxes etc); same asbusiness area adjustment

Transfer ofBalance SheetItems

Posts periodic 'point in time' balances to profitcentres for 'return on investment' typereporting (optional)

FI to PCA orCO-PA

ProfitabilitySegmentadjustment

Required if cash discount and exchange ratedifferences posted after revenue had alreadygone to CO-PA, is required to be in CO-PA

too.

CO to FIReconciliationAdjustments

Only required if

1. You have allowed the use of costtransfer or repost transactions,periodic reposting or distributions inCO and,

2. you wish to reconcile CO to FI

Periodic Processes can also define some relationships between organisationelements. These are largely in the CO area.


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Possible Organisation structure relationships in periodicprocesses that are not already covered in master data.

Module Sender Receiver PeriodicProcess

CO

internalorder

maintenanceorder

COproductionorder

capital-investmentorder

network

header network

activity cost object production

order sales

order,make-to-orderproduction

projectsettlementorder item

G/Laccount

cost center orders project asset network

activity profitability

segment sales

order cost object

order item

Settlement ofcosts and/orrevenues

periodically orat end of orderspecified bysender to oneor manyreceivers.

See settlementconfiguration

documentationin IMG fordetails andnotes onrestrictions

CO

one or many of :

Costcenters,

orders, WBS

elements,and

cost objects

per allocationsegment.

Configurable -basically singlevalues or groupsof CO objects(cost centres etc)

CostAssessment,Distribution orPeriodicreposting. Thiscan be donefor Processes

(In activitybased costing)too. This is notthe same asactivityallocationbelow.

See allocationsconfigurationdocumentationin IMG fordetails andnotes onrestrictions

CO Cost Centre Cost Centresand/or Orders

ActivityAllocation -passes costs

on usingactivity

See IMG - thisis a large area.


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