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SAP America, OS.PPT - 10/13/97, Slide 1
GOAL OF ORGANIZATION STRUCTURE WORKSHOP
Obtain an Understanding of the Customer’s Key Business Processes
Define the Chico Creek Brewery’s Organization Structure in SAP based on those Business Processes
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SAP America, OS.PPT - 10/13/97, Slide 2
AGENDA
Customer High Level Business Overview
Business Process Review
Financial/Asset Management
Sales Logistics
Procurement, Logistics Planning
Define the Organizational Elements in SAP based on the Chico Creek Brewery’s Business Processes and Reporting Requirements.
Document the Company’s SAP Organization Structure
Definition of Organization StructureDefinition of Organization Structure
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SAP America, OS.PPT - 10/13/97, Slide 3
Company’s Mission Statement
Markets
Customer Base
Products and Services
SAP Implementation Drivers
Business OverviewBusiness Overview
Integrated Business Process ReviewIntegrated Business Process Review
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SAP America, OS.PPT - 10/13/97, Slide 4
MISSION STATEMENT Our mission is to successfully implement SAP R/3 at
the Chico Creek Brewery in a timely, professional manner so that our client can realize a faster and more productive way to run their business processes.
We intend to create a sustainable competitive advantage for Chico Creek Brewery, as well as, substantial profitable results through the implementation of SAP R/3.
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SAP America, OS.PPT - 10/13/97, Slide 5
Integrated Business Processes Overview
Finance / Asset ManagementFinance / Asset Management
ProcurementProcurement
Logistics PlanningLogistics Planning
Sales LogisticsSales Logistics
ProductionProduction
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SAP America, OS.PPT - 10/13/97, Slide 6
Integrated Business Process Overview
Fore-cast
Fore-cast
Sales Oper Planning
Sales Oper Planning MPSMPS MRPMRP Order
Settlement
Order Settlement
CostingCosting
InventoryInventory
Manufacturing Execution
Manufacturing Execution
CapacityCapacity
Financial and Managerial Reporting and AnalysisFinancial and Managerial Reporting and Analysis
ProductionProduction
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SAP America, OS.PPT - 10/13/97, Slide 7
Organizational Structure Review
3000US #1
3000US #1
90Pale Ale
90Pale Ale
93Stout
93Stout
3000US
3000US
3000US
3000US
3000US
3000US
90Pale Ale
90Pale Ale
90Pale Ale
93Stout
93Stout
03Wholesale
93Stout
BusinessArea
PurchasingOrganization
Division/Plant
DistributionChannel
Division
SalesOrganization
Organizational StructureOrganizational Structure3000US
4000Australia
4000Australia
Chico Creek BreweryChico Creek Brewery
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SAP America, OS.PPT - 10/13/97, Slide 8
ACCOUNTSRECEIVABLE
ACCOUNTS PAYABLE
ASSETMANAGEMENT
COST CENTERACCOUNTING (CCA)
INTERNAL ORDER ACCOUNTING (OPA)
PROJECTACCOUNTING
PRODUCT COSTING
PROFIT CENTER ACCOUNTING (PCA)
PROFITABILITY ANALYSIS (PA)
FINANCIAL ACCOUNTING (FI / AM)
FINANCIAL REPORTING (FI)
MANAGEMENT REPORTING (CO)
GENERAL LEDGERNATURALACCOUNT
Finance Management /Accounting & Reporting
SD
MM
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SAP America, OS.PPT - 10/13/97, Slide 9
Organizational Elements - FI
Represents a legal/tax entity - Where do you legally represent the financial events of transacting business?
Arms Lengths Transactions
Level of External Reporting or Legal Sets of Books
Company Company
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SAP America, OS.PPT - 10/13/97, Slide 10
Organizational Elements - FI
Company Codes: Identify the proposed company codes if any for customer being evaluated.
Benefits: Identify the benefits of recommended usage of company codes.
Costs: Identify the costs of recommended usage of company codes.
Issues: Identify any open issues/questions.
Companies for Name of CustomerCompanies for Name of Customer
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SAP America, OS.PPT - 10/13/97, Slide 11
Organizational Elements - FI
Company Codes
Chico Creek Brewing Co.
North America Australia Japan Singapore Canada
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SAP America, OS.PPT - 10/13/97, Slide 12
Organizational Elements - FI
G/L Account Master Records Required in One or Several Company Codes
Postings are Made to these Accounts
Maximum of a 10 Digit Code
A company Must be Linked to One Operating Chart of Accounts
An Operating Chart of Accounts can be Linked to Many companies
Operating Chart of AccountsOperating Chart of Accounts
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SAP America, OS.PPT - 10/13/97, Slide 13
Organizational Elements - FI
Different from a lot of other Financial System Applications in that the G/L account is strictly comprised of the natural account code.
The management reporting structures (i.e. cost centers, divisions, regions, and job orders) is not embedded within the chart of accounts.
In SAP there is a relative relationship between the chart of accounts profit and loss natural account code and the cost centers.
Operating Chart of Accounts = General LedgerOperating Chart of Accounts = General Ledger
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SAP America, OS.PPT - 10/13/97, Slide 14
Organizational Elements - CO
An organizational unit within a corporation in which comprehensive independent management accounting can be performed.
Allows you to group Company Codes from a Cost Accounting View.
It links the financial accounting module (FI) to the management accounting module(CO) in SAP.
Controlling AreaControlling Area
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SAP America, OS.PPT - 10/13/97, Slide 15
Organizational Elements - CO
The Operating Chart of Accounts Links Financial Accounting(General Ledger) to Management Accounting in the following way:
A Company Code is Linked to the Operating Chart of Accounts
The Controlling Area is Linked to the Operating Chart of Accounts
A Company Code then can be Linked to any Controlling Area as long as they are both Linked to the Same Operating Chart of Accounts
Several Companies can be Linked to a Single Controlling Area regardless of the Companies Functional Currency.
Linking of FI and COLinking of FI and CO
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SAP America, OS.PPT - 10/13/97, Slide 16
Organizational Elements - CO
Used to Calculate the Profit of an Area of Responsibility within the Organization (e.g. the Brewery)
The Areas of Responsibility (Profit Centers) could be Based on Regions, Functions, or Products (e.g. Production).
Supports Calculating Operating Profit using the Cost of Goods Sold P/L Format and/or the Period Accounting Method
A Profit Center can also be Viewed as an Investment Center since it is Possible to Transfer at Period End the Balance Sheet Positions for Assets, WIP, AR, AP, and Inventory
Profit Center AccountingProfit Center Accounting
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SAP America, OS.PPT - 10/13/97, Slide 17
Organizational Elements - CO
A Profit Center is not an Independent Account Assignment Object at the Moment of Entering a Transaction in SD or MM; It is Derived From Existing Objects and is Allocated to the Correct Cost Object
As a Default, Revenue and Costs for Profit Centers are Derived as follows:
Sales Order Line Item based on the Product being Sold
Direct Costs Based on the Assignment of Production Orders and Direct Costs.
Overhead Costs Based on the Assignment of the Cost Center or other Cost Object
Profit CenterProfit Center
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SAP America, OS.PPT - 10/13/97, Slide 18
Organizational Elements - CO
Profit Centers: A division of the functional business areas which CCBC is involved with (e.g. the sale of merchandise).
Benefits: The ability to capture costs in Profit Centers, and perform profitability analysis on a single part of the business.
Issues: Identify additional Cost Centers in the Organizational Structure, and map them to existing processes..
Profit Centers for Chico Creek BrewingProfit Centers for Chico Creek Brewing
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SAP America, OS.PPT - 10/13/97, Slide 19
Organizational Elements - CO
Departmental Breakdown of your Legal Entity Structure
Lowest Level of Organization where you want to Collect and Analyze Costs/Departmental Performance
Departmental Budgets and Expense Analysis
Interdepartmental Cost Allocations
Each Cost Center is Assigned to a Profit Center, which is Assigned to a Company Code
Cost Centers are Structured into Organizational and/or Functional Hierarchical Groups
Cost CentersCost Centers
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SAP America, OS.PPT - 10/13/97, Slide 20
Organizational Elements - COChico Creek Brewing Company, Company Codes and Profit Centers
Controlling Area1000
Company Code
2000United States
Company Code
4000Japan
Company Code
5000Canada
Company Code
6000Singapore (Planned)
Company Code
3000Australia
Operating ConcernCCBC
Profit Center1200
Porter
Profit Center1000
Taproom (Pub)
Profit Center1100
Merchandise
Profit Center1400
Pale Ale
Profit Center1500
Hefe Weisen
Profit Center1600
Seasonal
Profit Center1300
Stout
Controlling Area1000
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SAP America, OS.PPT - 10/13/97, Slide 21
CC 2102
Mash Turn
CC 2107
Lauter Tun
CC 2110
Wort Receiver
CC 2103
Kettle
CC 2108
Hop Strainer
CC 2111
Whirlpool
CC 2104
Heat Exchanger
CC 2109
Fermenters
CC 2112
Filters
CC 2105
Conditin. Tanks
CC 2120
Bottling
CC 2220Legal
US
CC 2230Purchasing
US
CC 2240Management
US
CC 2300US
Sales & Distrib.
CC 2200US
Administration
CC 2100
Manufacturing
Organizational Elements - CO 10/08/98Chico Creek Brewing Company, Cost Centers
CC 2310
Sales, US
CC3310
Sales, AU
CC4310
Sales, JP
CC 5310
Sales, CA
CC 6310
Sales, SP
CC 2140
Finished Goods
CC 2106
Malt Mill
CC 2101
Water purifier
CC6350
Distribution,SP
CC 2350
Distribution, US
CC 4350
Distribution,JP
CC 5350
Distribution, CA
CC 3350
Distribution,AU
CC 2210Accounting
US
CC 2250Insurance
US
CC 2260HRUS
CC 2130
Kegging
CC 3220LegalAU
CC 3230Purchasing
AU
CC 3240Management
AU
CC 3210Accounting
AU
CC 3250Insurance
AU
CC 3260HRAU
CC 4220Legal
JP
CC 4230Purchasing
JP
CC 4240Management
JP
CC 4210Accounting
JP
CC 4250Insurance
JP
CC 4260HRJP
CC 5220LegalCAN
CC 5230Purchasing
CAN
CC 5240Management
CAN
CC 5210Accounting
CAN
CC 5250Insurance
CAN
CC 5260HR
CAN
CC 6220Legal
SP
CC 6230Purchasing
SP
CC 6240Management
SP
CC 6210Accounting
SP
CC 6250Insurance
SP
CC 6260HRSP
CC 3200AU
Administration
CC 4200JP
Administration
CC 5200CAN
Administration
CC 6200SP
Administration
CC 6300SP
Sales & Distrib.
CC 5300CAN
Sales & Distrib.
CC 4300JP
Sales & Distrib.
CC 3300AU
Sales & Distrib.
CC 2400
Taproom (Pub)
CC 2500
Merchandise
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SAP America, OS.PPT - 10/13/97, Slide 22
AM - Depreciation Areas
Depr. Areas
Pub/
Taproom Merch.
Depr. Areas
Depr.Areas
USA Canada Australia
Depr. Areas
Japan
Company Code
Canada
Company Code
Australia
Company Code
Japan
Chart of Depreciation Chart of Depr. Chart of Depr. Chart of Depr.
Brewery
Company Code
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SAP America, OS.PPT - 10/13/97, Slide 23
AM - Asset Number Structure
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SAP America, OS.PPT - 10/13/97, Slide 24
Asset Classification
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SAP America, OS.PPT - 10/13/97, Slide 25
IM - Hierarchical Structure
Investment Management
Program
Orders (CO) Projects (PS)
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SAP America, OS.PPT - 10/13/97, Slide 26
Chico Creek Brewing Co.Chico Creek Brewing Co.
Tap RoomTap Room
Brewing Plant
Brewing Plant
Tap RoomPlant
Tap RoomPlant
United States CanadaCanada
Plants
Purchasing Organizations and PlantsPurchasing Organizations and Plants
Organizational Elements - MM
SingaporeSingapore JapanJapan AustraliaAustralia
BreweryBrewery RetailRetail
Retail Plant
Retail Plant
Dry Inventory
Dry Inventory
WetInventory
WetInventoryStorage
Purchasing organizations
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SAP America, OS.PPT - 10/13/97, Slide 27
Organizational Elements - MM
Responsible for procurement for the brewing, tap room and retail plants
Responsible for negotiating pricing and delivery terms with vendors for each purchasing organization
Purchasing OrganizationPurchasing Organization
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SAP America, OS.PPT - 10/13/97, Slide 28
Organizational Elements - MM
Purchasing Organization: Each company will have its own purchasing organization
Benefits: A purchasing organization is assigned to a cost center where inventory is tracked and costs are incurred
Purchasing Organization for Chico Creek Brewing Co.Purchasing Organization for Chico Creek Brewing Co.
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SAP America, OS.PPT - 10/13/97, Slide 29
Organizational Elements - MM
It is a production facility that can have multiple locations associated with it
Usually a manufacturing facility, warehouse or a location that stocks, manages and valuates inventory
May be a physical site with multiple manufacturing/production lines
Can be a physical location (cost centers may or may not be associated to a plant i.e. administrative vs. manufacturing cost centers)
SD availability checking is normally done at the plant level
PlantPlant
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SAP America, OS.PPT - 10/13/97, Slide 30
Organizational Elements - MM
Links to production (PP), materials management (MM), and sales and distribution (SD)
A plant is assigned to a company
Purchasing organizations are assigned to plants
Plant (Cont.)Plant (Cont.)
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SAP America, OS.PPT - 10/13/97, Slide 31
Organizational Elements - MM
Plant: There are three plants: brewing, tap room and retail
Benefits: Being able to keep track of the profits and costs of each plant
Plant for Chico Creek Brewing Co.Plant for Chico Creek Brewing Co.
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SAP America, OS.PPT - 10/13/97, Slide 32
Organizational Elements - MM
A location within a plant where inventory is storedStorage LocationStorage Location
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SAP America, OS.PPT - 10/13/97, Slide 33
Organizational Elements - MM
Storage Locations: Brewery and tap room will have two separate storage locations: one for “dry” goods and one for “wet” or cold goods.
Benefits: Assets and incurred costs can be tracked by the different storage locations.
Storage Locations for Chico Brewing Co.Storage Locations for Chico Brewing Co.
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SAP America, OS.PPT - 10/13/97, Slide 34
Organizational Elements - SD
Sales Organization, Distribution Channel and DivisionSales Organization, Distribution Channel and Division
90Pale Ale
90Pale AleDivision
3000US
3000US
03Wholesale
03Wholesale
SalesOrganization
SalesOrganization
DistributionChannel
3000US
Chico Creek Brewing CompanyChico Creek Brewing Company
93Stout
93Stout
4000Australia
4000Australia
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SAP America, OS.PPT - 10/13/97, Slide 35
Organizational Elements - SD
A representation of a selling unit responsible for product liability and other claims made by customers
Each business transaction is processed within a sales organization
Master Data Maintenance for Customers, Pricing at Sales Organization Level
Sales Organization Assigned to a Company Code where Sales Revenue is Recognized (Links SD & FI)
Plants Assigned to a Sales Organization
Sales OrganizationSales Organization
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SAP America, OS.PPT - 10/13/97, Slide 36
Organizational Elements - SD
Sales Organization: United States, Australia, Canada, Japan, Singapore, Tap Room, Catering, Bakery, Merchandise
Benefits: To produce statistics for each of the sales organizations.
Costs: A manager will be required to head up each sales organization, therefore, costs may be slightly higher.
Sales Organization for Chico Creek Brewing CompanySales Organization for Chico Creek Brewing Company
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SAP America, OS.PPT - 10/13/97, Slide 37
Organizational Elements - SD
Used to define how different products reach consumers (I.e. retail, wholesale, or direct sale)
Relevant Master Data such as price, minimum order qty, and ship-from location may differ between each channel
Each Sales Order travels through one Distribution Channel
Distribution Channel assigned to a Sales Organization (I.e. direct sale for Merchandise items)
Distribution ChannelDistribution Channel
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SAP America, OS.PPT - 10/13/97, Slide 38
Organizational Elements - SD
Distribution Channels: Wholesale, Direct Sale, and Retail
Benefits: We can determine the profitability of each channel within a specified sales organization.
Costs: By having additional distribution channels (wholesale, retail), we will incur transportation costs.
Distribution Channels for Chico Creek Brewing CompanyDistribution Channels for Chico Creek Brewing Company
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SAP America, OS.PPT - 10/13/97, Slide 39
Organizational Elements - SD
A way of Grouping Materials, Products, or Services
Assign each product line to a particular division
Define customer-specific agreements for each division, including partial deliveries, pricing, and payment terms
Division Division
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SAP America, OS.PPT - 10/13/97, Slide 40
Organizational Elements - SD
Division: 5 types of beer, menu items, souvenirs, and services provided by catering.
Benefits: To keep track of how well each product sells within a given area.
Costs: By making the divisions equal to each type of product and service, the divisions will become more difficult to configure and maintain.
Division for Chico Creek Brewing CompanyDivision for Chico Creek Brewing Company
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SAP America, OS.PPT - 10/13/97, Slide 41
Organizational Elements - SD
Sales Area is a Combination of:Sales Area is a Combination of: Sales OrganizationSales Organization Distribution ChannelDistribution Channel DivisionDivision
All customer data relevant for sales is defined All customer data relevant for sales is defined according to the sales area (I.e. can specify for according to the sales area (I.e. can specify for each customer how pricing is done in each sales each customer how pricing is done in each sales area)area)
Links the Order Entry System(SD) to the Links the Order Entry System(SD) to the Financial/Managerial System(FI/CO)Financial/Managerial System(FI/CO)
Sales AreaSales Area
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SAP America, OS.PPT - 10/13/97, Slide 42
Sales Area for Chico Creek Brewing Company
Wholesale
Direct sale
Retail
US Merchandise Tap Room
Pale AlePorter
Hefe Weisen
Stout
Seasonal
Pale AlePorter
Hefe Weisen
Stout
Seasonal
Pale AlePorter
Hefe Weisen
Stout
Seasonal
HatsTee shirt
Sweatshirts
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SAP America, OS.PPT - 10/13/97, Slide 43
Organizational Elements - SDSales Organization, Distribution Channel and DivisionSales Organization, Distribution Channel and Division
3000US
3000US
Chico Creek Brewing CompanyChico Creek Brewing Company
3000AU
3000AU
5000Singapore
5000Singapore
4000Japan
4000Japan
5000Canada
5000Canada
8000Tap Rm.
8000Tap Rm.
9000Catering
9000Catering
1000Bakery
1000Bakery
2000Merchandise
2000Merchandise
04Direct Sale
03Wholesale
05Retail
92Porter
92Porter
93Stout
93Stout
94Seasonal
94Seasonal
91Hefe
91Hefe
90Pale Ale
90Pale Ale
04Direct Sale
80Hats
80Hats
60Shirts
60Shirts
70Sweatshirts
70Sweatshirts
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SAP America, OS.PPT - 10/13/97, Slide 44
Human Resource Structure
H U M A N R E S O U R C E M A N A G E M E N T D E P A R T M E N T
A N A L Y S TC o m p e nsa tio n & B e n e fits (H R IS )
(P a y ro ll, B e n e fits)
P E R S O N N E L A S S IS T A N T(G ra p h ic R ep o rts , E ve n ts P la n n in g)
(A c tu a lly A ss is ts A ll A n a lys ts)
A N A L Y S TE m p lo ym e n t & R e c ru it ing
(E E O C , A A )
A N A L Y S TD e ve lop m e nt
(T ra in in g , O D , S a fe ty & H e a lth )
D IR E C T O RH u m a n R e so u rce M a n a g er
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SAP America, OS.PPT - 10/13/97, Slide 45
Organizational Structure Review
3000US #1
3000US #1
90Pale Ale
90Pale Ale
93Stout
93Stout
2000US
2000US
2000US
2000US
2000US
2000US
90Pale Ale
90Pale Ale
90Pale Ale
93Stout
93Stout
03Wholesale
93Stout
BusinessArea
PurchasingOrganization
Division/Plant
DistributionChannel
Division
SalesOrganization
Organizational StructureOrganizational Structure2000US
3000Australia
3000Australia
Chico Creek BreweryChico Creek Brewery