SAP S/4HANA Production Planning ERP Organizational Structure Integration with Extended Warehouse Management

SAP S/4HANA Production Planning Organizational Structure Integration with Extended Warehouse Management

The purpose of this blog is to state the use of Organizational Data for SAP S/4 HANA Production Planning & Manufacturing Integration with Extended Warehouse Management. 

1.   What is a Client?

A Client is the highest organizational element of the SAP system’s organizational structure that contains User Master Data, Customizing data, and Application Data. An SAP S4 Hana system can contain more clients in logical systems and you can log on to the SAP S4 Hana system in a specific client.

• In the SAP system, a client is identified with 3 digits unique code

• Standard SAP system delivers with clients 000, 001, 066

  
  

As per SAP System’s Landscape, you can have 3 or more clients {Systems}

• Development – Dev client can be used for configuration, customization, and development of new components and functionalities.

• Quality Assurance System – QAS client is used for testing. upgrades and transports prior to implementation in the production system.

• Production Client – PROD client with live data used for Productive activities and business data

• Sandbox – The Sandbox client is used for sampling of customizing transactions and settings

• Test – The test client is used for testing configuration settings with data

• Training – Training client is used for end-user customer training environment

• Pre-Production – All the pre-production activities are done before the live production activities.

The configuration of the SAP system is done by the development client -> Transported to the Quality Assurance System for testing -> Final configuration is transported to the production system which is a final and live system for the production activities.

2.   Enterprise Organizational Structure

2.1        Financial Accounting 

We are required to create a company and company code. 

2.1.1     Define Company

In this step, you can create companies. The company is an organizational unit in accounting that allows you to organize your enterprise to meet certain legal requirements in a country/region.

You store basic data for each company in the company definition. You only specify particular functions when you customize in Financial Accounting. Company G0000 is preset in all dependent tables.

In the SAP system, consolidation functions in Financial Accounting are based on companies. A company can contain one or more company codes.

2.1.2     Define Company Code

The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.

The smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit or loss statement. 

2.1.3     Assign Company to Company Code

2.2 Logistics General

This is a valuation area where materials are valued when assigned to a single company code.

2.2.1 Define Valuation level

You define the valuation level by specifying the level at which material stocks are valuated. You can evaluate material stocks at the following levels:

• Plant level

Valuation must be at this level in the following cases:

• If you want to use the application component Production Planning (PP) or Costing

• If your system is a SAP Retail system

• Company code level

The decision you make is valid for the whole client. You are recommended to set material valuation at the plant level.

2.2.2         Define plant

The plant is an operating area or branch within a company.

The plant is embedded in the organizational structure as follows:

• The plant is assigned to a single company code. A company code can have several plants.

• Several storage locations in which material stocks are managed can belong to a plant.

• A single business area is assigned to a plant and to a division.

• A plant can be assigned to several combinations of sales organization and distribution channels.

• A plant can have several shipping points. A shipping point can be assigned to several plants.

• A plant can be defined as a maintenance planning plant.

2.2.3         Assign Plant to Company Code

In the Customizing activity "Assignment Plant - Company Code" you assign each plant to a company code. A plant can only belong to one company code.

Note

Complete functionality of the system can only be ensured if the plants assigned to a company code are only those situated in the same country/region as the company code.

It is therefore recommended that you also create a company code for each country/region in which a plant is situated.

2.3 Material Management

In material management, we need to maintain storage location and purchase organization

2.3.1 Maintain Storage location

2.3.2 Maintain Purchase Organization

2.3.3 Assign Purchase Organization to Company code

2.3.4 Assign Purchase Organization to Plant

2.4 Sales & Distribution

We required the following organizational data for Sales & Distribution settings.

2.4.1 Define Sales Organization

2.4.2 Define Distribution Channel

2.4.3 Maintain Sales Office

2.4.4 Maintain Sales Group

2.4.5 Assign Sales Organization to Company Code

2.4.6 Assign Distribution Channel to Sales Organization

2.4.7 Assign Division to Sales Organization

2.4.8 Setup Sales Area

2.4.9 Assign Sales office to the Sales area

2.4.10 Assign Sales Group to Sales office

2.4.11 Assign Sales Organization Distribution Channel to Plant 

2.5 Logistics Execution

We required the following organizational data in logistics Execution.

2.5.1         Define ERP Warehouse Number

Define the desired description for your warehouse numbers in Logistics Execution.

Use

A warehouse complex is represented in the Warehouse Management system as a warehouse number that is used to identify a complex warehouse setup. The physical location is usually decisive for assigning the definition of the warehouse number. A warehouse number groups together storage types and storage bins that are organized and maintained as a complete unit.

All warehouse procedures, such as stock placements and stock removals of materials, are always executed within a warehouse number.

2.5.2 Assign Warehouse Number to Plant/ Storage location

2.5.3 Define Shipping Point

2.5.4 Assign Shipping Point to Plant

2.4.5 Assign Shipping Point According to Storage Location

Shipping point is determined according to storage locations during sales order creation. This assignment will maintain the plant, storage location, shipping condition, and loading group combination.

Note: If any determination table. Field value ‘blank’ means, it applies to all allowed values for the fields.

2.4.6 Assign Goods Receiving Point for Inbound Delivery

Technically goods receiving point is a shipping point and determines the combination of plant and storage location. It is possible to assign several goods receipt points for plant storage location combinations with a priority value. 

If we receive goods from more than one storage location, all are required to maintain here.

2.5.7 Assign Shipping Point According to Storage Location 

2.5.8 Delivery Split by Warehouse Number

If the delivery items belong to different storage locations and those locations are assigned with different warehouses, the indicator splits the delivery according to delivery type and warehouse number. 

•  Define delivery split per delivery type

• Determine delivery split per warehouse number

2.5.9 Configure SAP EWM- Specific Parameters

2.5.10 Define Queue for transfer to SAP EWM

 2.5.11 Generate Distribution Model

ERP deliveries get distributed into the EWM according to the Warehouse parameters. BAPI Function Modules are required to be distributed from one system to another system.

In the ERP system these BAPI Function modules are clubbed together in the form of a distribution model against the ERP Warehouse, it is required to generate the distribution model along with a logical system.

Conclusion

The above steps need to be followed to create ERP Organizational Structure for SAP S/4HANA Production Planning and Integration with Extended Warehouse Management

Credit

This blog writing inspiration is from Naidu Sir's Live EWM Training Recorded Videos at SASTRAGEEK. 

Rajesh Sharma

SAP WM/EWM Functional Consultant

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