SAP Enterprise structure
The Variety of Configuration Options Possible in an Enterprise System

The Variety of Configuration Options Possible in an Enterprise System

Half the battle is won if you have SAP Enterprise structure in your business ecosystem. So, what’s this structure anyway? It is a company-level architecture that embodies an organization in SAP ERP systems.

It comprises certain enterprise entities which, for legal reasons or alternate business-associated reasons, are clubbed together. SAP has several business unit features that assist you in representing the accounting, logistics, sales, and human-resource makeup of your organization. The architecture of the company, its business processes, and extent of implementation will give an indication of the SAP organizational entities needed.

In the SAP system, the Enterprise Portal (EP) caters to 2 structures, namely:

  • Logical Enterprise Structure
  • Social Enterprise Structure

Logical EP

Logical Enterprise Structure

This comprises the business components that call for overseeing the SAP system such as plant or costing center.

Social EP

This describes the way in which an enterprise is organized into divisions or user departments. The HR component portrays the social structure of an EP.

SAP offers a variety of options to fulfil business requirements in terms of its respective departments such as Sales & Distribution, Material Management, Production Planning and Finance, Costing, and so on.

Four main key considerations for EP

Key Considerations for EP

  • Simplicity: It should not utilize more organization elements than required
  • Importance: It should not be effortless to refurbish the enterprise architecture, once the foundation is done for the business elements
  • Acceptance: In this key note, all levels of the project team should have inputs and acceptance
  • Ownership: It limits the group that has ownership of the organizational structure and puts governance into action early on in the project

The main areas where variety of EP configuration can exist include:

  • Sales and Distribution: Structure for Sales, Shipping, and Billing
  • Financial Accounting: Structure for G/L accounting, AP, and AR
  • Plant Maintenance: Structures for facilities maintenance
  • Controlling: Structures for Cost Center Accounting, Cost Controlling, and Profitability Analysis
  • Material Management: Structure for Material planning, Material valuation, Purchasing, Inventory management, Warehouse management, and Invoice verification
  • Logistic Execution: Structure for loading points, picking points, transportation point, and warehouses
  • Logistic General: Structure for general logistics activities, including those related to purchasing

EP Structure in SAP

EP Structure in SAP

Conclusion

In a competitive market, pushing down on the accelerator is one of the best strategies for landing the best business deals. While you shouldn’t move so quickly you fail to properly vet any strategy, you still want to move into the fast lane if you expect to win the race for the best business processes.

Author: Kundan Vishwakarma

Kundan is a Senior Consultant – SAP – at Knack Systems with over 7.5 years of experience in SAP SD. He has rich experience in delivering creative business solutions and guiding his clients on Best Business Practices. Kundan has worked extensively at different levels and served roles such as Team Lead, Subject Matter Expert, and Senior Functional Consultant.

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