Dilema over Plant / Organization Structure

Hi,
We are a Service Provider Company based in Orissa.
We receive Contracts from other Companies & execute them across India (different Project Sites). We have different Project Site across India.
In SAP, do we need to create all the Project Locations as PLANT.
Or, we can simply create a SINGLE PLANT & treat all the Project Sites Storage Locations.
As of now I have treated all the Site Locations as Plant.
For example, in Jharkhand, we have got two offices, one in Ranchi & another in Dhanbad. The Ranchi Site is taking care of three different projects running near by & Dhanbad Site is taking care of two different rojects. We have created both Ranchi & Dhanbad as Plants.
But while discussing the Organization Structure with our seniors, some one suggested that there is no need to create Project Sites a Plant; the same can be managed using Storage Locations only. They have proposed to create Jharkhand as a Plant; Ranchi & Dhanbad as Storage Locations. The problem with me is that there are different people handling purchase & stock both in Ranchi & Dhanbad.
Also there is some Stock Transfer from Ranchi to some other States (for example, Guwahati & Silchar in Assam).
If we create Jharkhand & Assam as Plants and Ranchi ,Dhanbad, Guwahati & Silchar as Storage Locations, will be logically true.
I am in a dilema as I am not aware of how the Project Systems people map the Plants in SAP. Here in our case, the Project Systems guy is thinking of STATE as Plants while I personally think that Office Locations from where purchase & stock keeing is done as Plants.
I am confused about the process for transfering Materials among the locations (withinn and outside State)
Pls. guide.
Regards
Aditi..

Discuss with your client , How they are handling the procurement in Legacy..
IF you they are using de-centralized Procurement then you need to define the respective procurement centres as Plants.. (Which will allow you to address the taxes & Valuation of Material )
If they are using the sites only for monitoring the stocks & goods movements, then you need to define them as Sto Locations..
It all depends upon the inputs from the client & the Legacy business scenario..
Prepare a Presentation detailings the advantages & dis-advantages of defining as a Plant or Sto location..
First Discuss the same with your colleagues and then with the client..

Similar Messages

SAP Best Practice for Plant Organizational Structure

Hi
Can one please suggest us . how we can design the Plant Structure ( Please refer OSS notes if you have ).
1) Design of a Plant / Storage location if it is located in different state. We have one manufacturing plant , and six storage ware house in different region within states and two outside states. They will just receive , Issue and do Physical Inventory .
QN : Do we consider (Storage location )this as Plant or Storage Location ?
Can one one support with valid document from SAP Please
Thanks

Hi,
If you are storing the material in 8 storage locations only, no tax related, material price do not change according to storage locations, material valuation only in one plant (manufacturing),In This case you can use two plant. One Plant (P1, Logical Plant) and one Storage location(in ur manufacturing plant) and another plant(P2, Statistical Plant) having your having your 8 storage locations, So that you can get inventory report plant wise, storage location wise with time period.
Check following OSS notes:
100757, 63493, 96262, 87843, 82033, 64946
Regards,
Biju K

Organization structure of AA

Hi
can any one tell me what is the organization structure of Asset Accounting
Thanx in advance

Hi,
In addition to providing for the management of assets and their values, asset accounting should offer an organizational structure for assets that reflects the organizational structure of the enterprise. For this reason, the FI-AA component uses the various SAP organizational units. An asset is clearly assigned to these organizational units at any given point in time.
In addition, you need to classify assets according to various accounting criteria (such as depreciation methods). This classification assists in management-accounting-oriented tasks, and in the summarization of asset values in the general ledger.
You can assign an asset to a number of organizational units by making entries in the asset master record. These assignments are meaningful primarily in other SAP R/3 applications. However, there are also functions and requirements for Asset Accounting that make it necessary or desirable to make organizational assignments.
Asset Accounting uses the same company codes as the General Ledger. However, you need to define these company codes further with the specifications needed for Asset Accounting. An FI company code is not usable in Asset Accounting until it has been defined in this way.
In order to make a company code usable in Asset Accounting, you have to assign a chart of depreciation to the company code. You do so in Customizing for Asset Accounting. Choose Organizational Structures ® Assign Chart of Depreciation to Company Code.
The business area is another organizational criterion for General Ledger Accounting, in addition to the company code.
Features
If you specify in Customizing for the General Ledger that business area balance sheets should be created for a company code, the system requires that assets be assigned to a business area during master record maintenance. The business area can also be adopted automatically from the cost center that you entered. As long as a fixed asset is assigned to a business area, the system makes account assignment of all postings to this asset to this business area, including depreciation and gain or loss postings on asset retirement.
If you want to assign a fixed asset, which has already been posted, to another business area, you have to transfer the fixed asset to a new asset master record. The posting becomes effective at the same time in the General Ledger. If you do not create business area balance sheets, you can change the business area in the time-dependent assignments in the asset master record.
Use
The meanings of the plant and location organizational units are primarily specified in the SAP R/3 logistics components.
Prerequisites
You maintain plants and locations in Customizing. Choose Enterprise Structure.
Features
Plant
Generally, the plant is a plant location or branch. The plant has no asset accounting relevance, but it can be used as a sort and selection criterion for reports. You can assign a fixed asset to one plant for a set time in its asset master record. By changing the asset master record, you can change the assignment to a different plant.
Location
The location is handled the same as the plant. In addition to a plant, you can make a time-dependent assignment of the asset to a location.
Address
In the Customizing definition of the location, you can also specify an address. Using this method, you can indirectly assign an address to an asset. The comprehensive address data consists mainly of
Street address
PO box
Information for communication (such as telephone number)
Since the address is linked to the location, all assets with the same location must have the same address. You can obtain reports related to the address using a standard report in the FI-AA Information System. You can display the address in the asset master record, on the Time-dependent data tab page.
Use
For internal accounting, you generally need to assign asset costs to cost centers. Therefore, you can assign each asset in Asset Accounting to exactly one cost center. You make this assignment in the asset master record. At the level of the cost center, you can then
Post all depreciation and interest for the asset (see System Settings for Depreciation Posting )
Plan all future depreciation and interest (for primary cost planning, see Primary Cost Planning )
Statistically post gain or loss from the sale of assets (see Additional Account Assignment )
Prerequisites
If you want to use cost accounting across company codes, then you have to set this up in Customizing for Asset Accounting. Choose Master Data->Specify Cost Center Check Across Company Codes.
You define the necessary clearing accounts for this for the different company codes in Customizing for General Ledger Accounting. Choose Business Transactions.
Features: The cost center assignment of a fixed asset can be set to begin on a specific day. If this date changes over the course of time, the system distributes depreciation and interest, according to the appropriate period, to the different cost centers, whereby costs are always allocated to the cost center valid at the end of the depreciation period. The history of the cost center changes can be managed in the system as long as you wish. A cost center can also be assigned to a business area as an asset can. In asset master record maintenance, therefore, the system ensures that the business area of the cost center matches the business area of the asset.
If you assign assets to more than one cost center at the same time, you have to do one of the following:
Distribute the costs within cost accounting using a distribution cost center.
Post depreciation and interest to an internal order and then settle the order
Hope this helps. please assign points.
Rgds
manish

Error while creating the Organization structure.

Hi,
I am trying to create an Organization structure in SRM 5 sytem, I have created a Root for the structure and when i try to click on the Attribute Inheritance or the Check tab below i am getting an error "Start program BBP_LOCATIONS_GET_ALL first (see note 563180 and long text)" but i have replicated one plant from the R/3 system using BBP_LOCATIONS_GET_SELECTED and the material groups and all the other relevant datas from R/3. I can see in the table BBP_LOCMAP the plant been associated with the relevant company code. I am now struck in creating the organization structure. I am not sure where i am going wrong while creating the Org model.Please give me your valuable inputs to overcome this error.
Regards
GGL

Go to transaction SM30, table T77S0
Add an X to the following entry:
Group = EBP
Sem abbr. = LMIGR
Val. Abbr. = X
Description = Locations Successfully Migrated
This tell the system that the locations have been replicated and the error indicating location get all needs be executed will go away.
thanks,
justin
Edited by: Justin Farley on Feb 25, 2009 7:16 PM

FI organizational structure in ECC 6.0

Dear all,
I would like to know what is the suggested organizational structure in FI in ECC 6.0. For example, whether it supports multiple company code or single company code. If a company code is situated out of India, how the taxation and all will be consolidated etc. etc.
Kindly can any one provide me documents on the above subject related to Finance Module.
It will be very helpful If anyone sends the required documents
Email id : [email protected]
Thanking you in advance
Vijaya

Hi Vijayalaxmi,
SAP 6.0 ECC is supports what data you doing in previous versions like 4.7 or 5.0 etc
you can set company in india or out of india and taxation also same what you doing in previous versions
differece is ECC 6.0 is some extra functions is added on advance purpose
Organizational Units and Basic Settings
Definition
Elements of the SAP System logical structure, important for Financial Accounting.
Organizational units are used to structure business functions and for reporting. The organizational units of Financial Accounting are used for external reporting purposes, that is, they fulfil requirements that your business is subject to from external parties, for example, legal regulations. The financial statements for example, are created based on the organizational units of Financial Accounting.
Basic settings in Financial Accounting are Customizing settings that you have to make in order to be able to carry out processes in Financial Accounting.
Use
You create your company-specific organizational structure in the SAP System by defining the organizational units and making the basic settings. Defining organizational units for Financial Accounting is obligatory, that is, you have to define these units in order to be able to implement the Financial Accounting component.
Organizational unit
Definition
Client
Obligatory
Company
Optional
Company code
Obligatory
Business area
Optional
Basic setting
Chart of accounts
Obligatory
Fiscal year
Obligatory
Currencies
Obligatory
Integration
In the SAP System, you define the relevant organizational units for each component that you are implementing. For example, for Sales and Distribution, you define sales organizations, distribution channels, and divisions (product groups). Similarly, for Purchasing, you define purchasing organizations, evaluation levels, plants, and storage locations. The organizational units are independent of one another at this stage.
Components and Organizational Units
Component
Organizational unit
Sales and Distribution
Sales organization, ...
Logistics
Purchasing organization, ...
Financial Accounting
Company code, ...
Controlling
Controlling area, ...
Human Resources
Employee groups, ...
To transfer data between the individual components, you have to assign the organizational units to each other. You only need to make these assignments once in the system. Whenever you enter data subsequently, it is automatically transferred.
For example, invoices that are posted in SD are transferred to FI.
Below link will give total structure of organisational structure
http://help.sap.com/saphelp_470/helpdata/en/e5/0779ee4acd11d182b90000e829fbfe/frameset.htm
Hope this infirmation will helps you
Prem

ALE: e-recruiting organizational structure transfer

Hi friends,
I want to transfer the organization structure or the organization plan with O,S,C object types from one SAP system to another SAP system.
I have done the ALE configuration and using PAFL transaction to do the same.
I would like to know that model view i should use for the distribution also i would want to know the screen parameters in PAFL transaction.
I am doing the same for E-recruiting separate instance.
Regards,
Divya
Points would be given

Hello,
We are still having a problem with failing iDocs everytime we pass over IT0105 Sty 1 records from our SAP system to E-Recruiting.
Would anyone happen to know where I should start looking to troubleshoot this error message?
"Password is not long enough (minimum length: 6 characters)"
Currently both systems require that your password be at least 6 characters long, which makes this message even more perplexing.
Having a better understanding of how RBDAPP01 processes inbound IDOCS in status 64 would help. We are using message type HRMD_ABA. Our data filter looks like....
Infotype: 1000
Object Type: C, O, S
Infotype: 1001
Object Type: C, O, S
Subtypes: A002, A007, A008, A012, B002, B007, B008, B012
Infotype: 1001
Object Type: O, S
Subtypes: A003, B003
Infotypes: 0000, 0001, 0002
Object Type: P
Infotype: 0006
Object Type: P
Subtype: 1
Infotype: 0105
Object Type: P
Subtypes: 0001, 0010
So the question is how is IT0105 Sty 1 being processed when RBDAPP01 runs?
Thank you for your help!
Ryan
Edited by: Ryan Hubbell on Mar 31, 2009 7:00 PM
Edited by: Ryan Hubbell on Mar 31, 2009 7:47 PM

Regarding workflow organization structure

hi Gurs.
How to create Organization Structure, Create Workflow with Multiple Approval based on Organization Structure.
this is my requirement i dont no how to create organization structure in which tcode i have to build and what all steps.
pl help me.
Regards
vijay

Hi,
Your thread has had no response since it's creation over
2 weeks ago, therefore, I recommend that you either:
- Rephrase the question.
- Provide additional Information to prompt a response.
- Close the thread if the answer is already known.
Thank you for your compliance in this regard.
Kind regards,
Siobhan

Organization structure for Case study .... need yr advice

Hi I am in process of preparing an org structure for one of the company.
The company operations is like .
The company has four factories in different locations and have 3 Regional distribution centers (RDC) across india. Each distribution center has 5 branches (Sales Offices), in this way they 15 Sales offices across India.
Most of the materials are procured by factories independently while some materials are centrally procured. Factories produce Finish goods and they are either sale to customer directly ( big regular customers) , or transferred to RDC to cater the requirements of other MID size customers and the other possibility to transfer it to Branches for Retail customers. RDCs also transfer FG to Branches.
All factories , RDC and branches have warehouse facility , however branches have limited warehouse facility as the customers supported by them are very few and generally deliveries are made directly from RDC / Factory.
They also have one R&D department in another location to develop new products and material is generally transferred from factories to R&D department.They also have one project division at the same (R&D) location which handles commissioning of new plants and procurement of capital goods.
Raw Material , Semi finish and FG are transferred between factories and FG material is also transferred between RDCs.
The group also has another Company which produces another line of products. RDCs and Branches of first company also work for second company (which means same RDC can store FG produced by both companies) and also Branches can also have FG material of both companies. Second company doesnt have any specific R&D or capital division and R&D and capital of first company also work for second company.
Inter company transfer between both companies is a regular practice.
> Proposed Org structure
Company Group Company
Company Code First company and Second company
Factory Configurations
For first company
4 Factories will be 4 plants
Factories Structure (Storage locations / warehouses and storage type)
Since factories have different type of material ( like FG , Raw material , WIP ) therefore I am confused what option I should select
1) 3 storage location ( for each plant) and one warehouse, 1 storage type
2) 1 storage location and three warehouses (I think this is not possible in SAP , not sure ?? )
3) 1 storage location , 1 warehouse and 3 storage types
RDC structure
RDCs have full fledged warehouse facility and therefore thinking of making them also as Plant. Every RDC will have 6 Storage locations , 1 for First company RDC itself, 5 for associated branches and I feel each RDC storage locations should be a associated to a separate warehouse also.
( Since both companies produce different set of products therefore they will have different material and hence thinking of handling products of both companies in same plant and same storage location and warehouse , may be two storage type/area can be defined to differentiate material of both companies.)
Branches: Will be storage locations under RDC ..
While making branches as Storage location . I have another question about valuation , since material from Plant and RDC is being transferred to Branches and from there it is distributed to customers therefore the valuation of FG at BRANCH and RDC should be different as transportation cost , packing , unpacking etc cost should get added at Branch level.
Therefore in case I make branch as Storage location , I will miss the valuation part while if I make them as Plant then there will be lot of documents get generated for each movement. Hence not sure for what option I should go.
R&D:
Since R& D department is involved in testing in New Product development and generally material is required to be scrapped after testing therefore thinking of making it as Plant with one storage location and may be here I dont need any warehouse (WM) here.
Project Division
Project division may also be a separate plant with one storage location and NO WAREHOUSE is required to linked with it.
Purchase Organizations
4 purchase organizations for each plant respectively and 1 centralized purchase Org for central procurement.
Your all valuable inputs are welcome .... looking foward to have a best possible configuration for above mentioned case study.
Regards

Phew... long long question
The rule I generally follow is that the org structure should map reality.
Company code - where Balance Sheet and Profit and Loss are prepared at the end of the year. If an entity does not do this, it is not a company code.
Plant
1) Each manufacturing facility is a plant (could be in 1 location or separate).
2) Each separate location is a plant (even if it only stores goods). May be an overkill, but helps when legal requirements change or the location is upgraded.
So in your case, RDC will be a plant (may be more than 1 if necessary). R&D should be a separate plant without warehouse management
Storage location
The only rule I follow is that there should not be any overlap of storage locations. So physically, any area of say 1 square foot should belong to one and only one storage location. Otherwise there is a lot of confusion during physical inventory. So logical locations are a no-no.
I usually use a lot of storage locations.
Don't have a warehouse spanning multiple plants (even though it is allowed).
Purchasing organizations
Have one for each location of purchase. If there is a team sitting in each plant procuring for only that plant, have it as a separate purchasing org (not strictly necessary, but makes authorization simple). For central purchasing, a central purchasing org should do nicely...
Hope this helps,
Lakshman

Organizational structure

Hi,
I need to know the organizational structure flow diagram for purchasing related to FI module such as the diagram which shows the relationship b/w storage location,company codes n plants.

Hi ,
You can go through SPRO settings
also see the link http://www.sap-topjobs.com/SpecialPP/SAPMM.pdf
where you can find the useful documentation,
hope this helps
Thanks,
Prashant

Urgent organizational structure

hi frnds
wish u happy new year.
i have 2 headquarters,4 plants and 8 business areas. plz tell me organizational structure clearly .plz try to explain full.
organizational structure means --operating concern,controlling area,company codes,credit control area,coa,business areas,profit centers n cost centers.ok
but
1. why should use operating concern (client) first,what is his role n functions?
2.why should use controlling area n its functions?
3.when should use the chart of account
after comapny code or before company code? why should take like explain?(means one coa ,no. of company codes and one company code one coa)
4.here one coa ,no.of company code what is uses and loses of this and in controlling area also?compare with 5?
5.here one coa ,one company code what is the uses and loses of this and in co also compare with no.4?
6.why should use business areas, only for internal reports,can we get financial statement p&l n balance sheet?what is disadvantage of business area? y bcz it is not in the ecc6.0 version?
7.what is function of profit center?is it support to subledger? how can we do this subledger posting?
8.no.of coa and no.of company code,when it is ,in the contrilling area how can we do ? how can we do consolidation? how can we get totals expenses and total revenue?how can we see the total in one a/c? in the real time which use, 1 to n(1:n) coa, or 1 to 1(1:1)coa?
9.how many cost centers we can create ,based on which?
i am requesting u plz explain clearly all this that too including explaining with my organizational structure
thanks n regards
nagesh

Hi there
Your question doesn't seem to have anything to do with OO ABAP.
I suggest you post this question in a more appropriate forum.
This Forum is for OO Abap.
Your question is much more likely to get answered if posted to the correct forum.
Not trying to be the proverbial "Grade A" but routing your posts to the most appropriate Forum will benefit everyone including you a lot.
Cheers
Jimbo

Changing organizational structure in SRM

Hi All,
We are in production with SRM 4.0 since 1.1.2006 and using R/3 since 2003.
Our company intends to change the organizational structure (delete, merge, move
organizational structure).
We are going to copy our PROD systems (both R/3 and SRM) to other systems to be able to apply and check the changes.
Problems:
1. How is it possible to replace LogsysXXX to that of the new backend for each attribute in the organizational structure, for every organizational unit? The attributes are not inherited data because they differ from one another, and there are many of them within the org structure (for example the attributes plant, purchasing org and group have the LogsysXXX defined as part of the parameter. There are about 600 users with 50 attributes each in all the org structure; therefore a manual process would not be acceptable.
Note: We didnt copy the HR organization to the SRM org structure.
2. Documents which are being processed and at the time of copy client and were already created in SRM (PO, POR, SC), point to the old backend (LogsysXXX).
How do we change this pointer in existing documents to the new backend system?
Best regards,
Rami

Hi Rami,
Please check former post :
Re: Logical system name to be updated while client copy--URGENT HELP REQUIRED
Re: Exact copy of SRM PRD to DEV ? :-(
Kind regards,
Yann

Input for Organization Structure finilization.

Hello Experts
I have to implement the organization structure of company for that I need some input from experts.
In plant A
Example
Process 1 in plant A
Raw Material = RM1
Raw Material = RM2
From this we produce
Semi Finish Good = SFG1
Process 2 in plant A
Adding Raw Material = RM3
& Semi Finish Good(of process1) = SFG1
We produce
Semi finish = SFG2
We sell some quantity of SFG1 and SFG2 from Plant A itself and transfer balance to Plant B for further processing
In plant B
We receive SFG2 from plant A for further processing.
SFG2(of plant A) + RM4 = FG1
And then we transfer part of FG1 to Plant C (Depot) for sale and balance we sale from plant B itself
Client wants are:
1.Plant wise balance sheet
2 Process wise cost (Process in each plant E.g Process A & Process B)
3. Process wise Revenue if we sale SFG or FG form that plant itself
What i find the solution to above case
1. 1 Company Code
2. 3 Plants
3. Plant will be equal to Segment
4. Process in each plant equal to Profit Center
But in that case one problem will arise that which profit center will we assign in Which Material as material will move form one Profit center to another in one plant itself.
Kindly suggest me, We will implement Product Costing and we are on EHP5.
Kindly share if you have better idea for above issue.
Regards,
Bittu

Dear Experts,
Any input from you all is highly appreciated.
Regards,
Bittu

Organization structure for Inventory management

Hi All,
I am looking for organization structure specific to inventory management and also data flow architecture.
If there is any standard org structure is available please share with me.
Regards
Vijay

I am looking for organization structure specific to inventory management and also data flow architecture.
> If there is any standard org structure is available please share with me.
Hi Vijay,
Standard Org Structure for IM starts with Plants and ends with Storage Locations. You can create required no of storage locations under your plants, where plants are assigned to company codes. Its always better to copy from master plant 1000/0001 while creating the plants where you can make changes during creation where required (factory calendar etc).
All the material movements within the plant happen between storage locations, material-material, special stocks-unrestricted stocks with no accounting effect.
Movements between the plants can be planned wrt your needs such as STO with no financial postings unless you have plant wise PCA
You can follow the standard avaiable structure for your IM org structure.
Regards
Shiva

Organizational structure of SAP

I would like to know the ORGANIZATIONAL STRUCTURE IN SAP.Plz send me ASAP.Thanks in advance.Regards
Raj

Hi,
The organizational structure in SAP looks like this:
 CLIENT = GROUP
 _______________|________________
COMPANY CODE COMPANY CODE
 _____________|________________
 PLANT PRODUCTION DEPARTMENT
The definition of client and company code stands as follows:
Client (Cross Application)A client in R/3 is a technical entity containing configuration, master data and transactions for an organization. For example the organization may designate Client 100 in the production system PRD as the client in which data may be entered. Other clients may be used for development, testing and training.
Company Code
The Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.
Please feel free to reverse back.
Reward points if this is useful to you.
-B S B

How to get the organization structures of a compnay code (BUKRS)?

Hi Friends,
I have a requirement to get the organization structures of a compnay code (BUKRS), such as Controlling area, Credit control area, Plant, Sales Organization, Purch. Organization, Personnel area.
How can I get them, I only know the compnay code table is T001, but how to get the organization structures of a compnay code (BUKRS) into a internal table?
Thanks a lot!

Hi,
A lot of table will be involved for the same.
The company code is the highest unit and all other things are assigned to it.
Check the settings in SPRO as to how the maintainance is done.
From here you will get the maintainance view details if you do F1 help on each field.
From this view you can get the relevant tables.
For eg.
Go to SPRO>Controlling>Organization-->Maintain Controlling Area
Here you will find the assignment of controlling area to the company code.
The maintainance view is V_TKA02 and the tables involved are TKA02, TKA01, T001
In this way you can find the relevant tables.
Regards,
Ankur Parab

Dilema over Plant / Organization Structure

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