Lesson : SYSTEM WIDE CONCEPT

Organizational Elements
A company's enterprise structure is mapped to SAP application using organizational elements.

Master Data
Created centrally and available to all applications and all authorized users, master data also has an organizational aspect because its information is organized into views that are assigned to organizational elements.

Transaction
Transaction are application programs that execute business processes in the SAP system. Examples include create sales order, change customer master, or display a sales order's list report.

Organizational Elements

Client
The highest level element of all organizational elements It represents theenterprise/headquarters group.

Company Code
The company code is a legal independent 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
A plant can manufacture product, distribute product, or provide a service; it is the central organizational unit of production.

Storage Location
Material stocks in inventory management can be differentiated within one plant according to storage location.

Sales organization
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 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 enterprise.

IDES
IDES (International Demonstration and Educational System) is an international company dependent upon collaboartions with external business partners and a global outlook.
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
The scenario for the IDES is describe in details below
As an international company, IDES has several holdingsand requires the ability to report to shareholders on an international bases.
IDES AG produces many products Products are manufactured at a number of production locations worldwide Global planning ensures that deliveries are made from the nearest distribution center.
Customers and nterested parties have access to information about IDES products,accessories, services on the IDES company’s home page. A user-friendly interface and a product search function make it easy for customers to create purchase requests.
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 Concept
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 resource.The three-part structure of master records makes it possible to flexibly depict the various organizational structures of an operation.

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:
1. General Data : This data is equally relevant to every company code and every sales organization within a company.
2. Data for Company Codes: This data reflects company-spesific agreements with the customer.
3. Data for Sales: This data has different characteristics for a company's sales organization and channels.
The layout of customer master records also leaves room for special requirments
Material Master
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 things, how a products is sold, manufactured, purchased, inventoried, accounted, and costed. The information in the material master is grouped into views that are organized by business function.

Personnel File
Personnel files are master data records used primarily mySAP ERP Human Capital Management. These master records follow the same basic three-part structure, as do other master records.
The organizational elements used by mySAP HCM are unique and, as a group, they are referred to as Organizational Management.
The functions of Organizational Management enable you to quickly and efficiently map your current oragnizational and reporting structure with its organizational objects - organizational units, jobs, positions, and tasks.
Organizational Units describe the various business units that exist in your enterprise. Multiple organizational units and their relationship form the organizational structure. Organizational units can be loosely defined as functional or regional departemens, or as project group, depending on the type of organization.

Jobs
Jobs serve as descriptions, or templates, that apply to several positions with similiar requirments, tasks, or other characteristics.

Positions
Positions are the individual employee assignments in the enterprise. Persons occupy positions. A position inherits a job's characteristics, but you can also define additional characteristics spesific to that position.

Persons
Persons hold positions within the organizational structure. Persons represent employees in your company.

Transactions
Transaction are application programs that execute business processes in the SAP system whenever possible, master data is copied during transaction processing avoiding reentry data . for example when executing the transaction. create sales order . the user must enter the customer master number . this copy is in all of the relevant customer information . likewise , once the material master numbers are entered for the items being ordered , the relevant material data will be copied into the sales order
In addition , 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. That document, a data record of the transaction, contains all of the relevant predefined information from the master data and organizational elements.