org structure presentation oct 8

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 1


AGENDA

Definition of Organization Structure

 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

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 SAP America, OS.PPT - 10/13/97, Slide 2


Integrated Business Process Review
Business Overview
 Company’s Mission Statement
 Markets
 Customer Base
 Products and Services
 SAP Implementation Drivers

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 SAP America, OS.PPT - 10/13/97, Slide 3


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 4


Integrated Business Processes Overview

Procurement
Logistics Planning
Sales Logistics
Production
Finance / Asset Management
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 SAP America, OS.PPT - 10/13/97, Slide 5


Integrated Business Process Overview
Production

ForeForecast
cast

Sales
SalesOper
Oper
Planning

Planning

MPS
MPS

MRP
MRP

Manufacturing
Manufacturing
Execution
Execution

Order
Order
Settlement
Settlement

Inventory
Inventory

Capacity
Capacity
Costing
Costing

Financial
Financialand
andManagerial
ManagerialReporting

Reportingand
andAnalysis
Analysis

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 SAP America, OS.PPT - 10/13/97, Slide 6


Organizational Structure Review
Organizational Structure
3000
US

Chico
Chico Creek
Creek Brewery
Brewery

Business
Area

3000
3000
US
US#1
#1

Purchasing
Organization

Division/
Plant

90
90
Pale
PaleAle
Ale

Division

93
93
Stout
Stout

3000
3000
US
US

4000
4000
Australia
Australia

3000
3000
US
US

3000
3000
US
US

Sales
Organization

Distribution
Channel

93
93
Stout
Stout

90
90
Pale
PaleAle
Ale

03
Wholesale
90
Pale Ale

 SAP America, OS.PPT - 10/13/97, Slide 7

93
Stout

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Finance Management /Accounting & Reporting
FINANCIAL
ACCOUNTING
(FI / AM)

SD

MM

FINANCIAL
REPORTING
(FI)

COST CENTER
ACCOUNTING (CCA)

ACCOUNTS
RECEIVABLE

ACCOUNTS
PAYABLE

ASSET
MANAGEMENT

MANAGEMENT
REPORTING
(CO)

INTERNAL ORDER
ACCOUNTING (OPA)
GENERAL
LEDGER
NATURAL
ACCOUNT

PROJECT
ACCOUNTING
PRODUCT COSTING
PROFIT CENTER
ACCOUNTING (PCA)
PROFITABILITY
ANALYSIS (PA)
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 SAP America, OS.PPT - 10/13/97, Slide 8


Organizational Elements - FI
Company
 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

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 SAP America, OS.PPT - 10/13/97, Slide 9


Organizational Elements - FI
Companies for Name of Customer
 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.

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 SAP America, OS.PPT - 10/13/97, Slide 10


Organizational Elements - FI
Chico Creek Brewing
Co.

Company Codes

North America

Australia

Japan

Singapore

Canada

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 SAP America, OS.PPT - 10/13/97, Slide 11


Organizational Elements - FI
Operating Chart of Accounts
 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

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 SAP America, OS.PPT - 10/13/97, Slide 12


Organizational Elements - FI

Operating Chart of Accounts = General Ledger
 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.

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 SAP America, OS.PPT - 10/13/97, Slide 13


Organizational Elements - CO
Controlling Area
 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.

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 SAP America, OS.PPT - 10/13/97, Slide 14

Organizational Elements - CO
Linking of FI and 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.

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 SAP America, OS.PPT - 10/13/97, Slide 15

Organizational Elements - CO
Profit Center Accounting
 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

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 SAP America, OS.PPT - 10/13/97, Slide 16


Organizational Elements - CO
Profit Center
 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

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 SAP America, OS.PPT - 10/13/97, Slide 17


Organizational Elements - CO
Profit Centers for Chico Creek Brewing
 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..

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 SAP America, OS.PPT - 10/13/97, Slide 18

Organizational Elements - CO
Cost Centers


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

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 SAP America, OS.PPT - 10/13/97, Slide 19


Organizational Elements - CO
Chico Creek Brewing Company, Company Codes and Profit Centers
Operating Concern
CCBC

Controlling Area
1000

Company Code

Company Code

Company Code

Company Code

Company Code

2000

3000

4000

5000

6000

United States

Australia

Japan

Canada

Singapore (Planned)

Controlling Area
1000

Profit Center
1000

Profit Center
1100

Profit Center
1200

Profit Center
1300

Profit Center

1400

Profit Center
1500

Profit Center
1600

Taproom (Pub)

Merchandise

Porter

Stout

Pale Ale

Hefe Weisen

Seasonal

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 SAP America, OS.PPT - 10/13/97, Slide 20


Organizational Elements - CO 10/08/98
Chico Creek Brewing Company, Cost Centers
CC 2100

Manufacturing

CC 2101

CC 2106

CC 2111

Water purifier

Malt Mill

Whirlpool

CC 2102

CC 2107

CC 2112

Mash Turn

Lauter Tun

Filters

CC 2103

CC 2108

CC 2120

Kettle

Hop Strainer

Bottling

CC 2104

CC 2109

CC 2130

Heat Exchanger

Fermenters

Kegging

CC 2105

CC 2110

CC 2140

Conditin. Tanks

Wort Receiver

Finished Goods

CC 2400

CC 2500

Taproom (Pub)

Merchandise

CC 2200
US
Administration

CC 3200
AU
Administration

CC 4200
JP
Administration

CC 5200
CAN
Administration

CC 6200
SP
Administration

CC 2300
US
Sales & Distrib.

CC 3300
AU
Sales & Distrib.

CC 4300
JP
Sales & Distrib.

CC 2210
Accounting
US

CC 3210
Accounting
AU

CC 4210
Accounting
JP

CC 5210
Accounting
CAN

CC 6210
Accounting

SP

CC 2310

CC3310

CC4310

Sales, US

Sales, AU

Sales, JP

CC 2220
Legal
US

CC 3220
Legal
AU

CC 4220
Legal
JP

CC 5220
Legal
CAN

CC 6220
Legal
SP

CC 2350

CC 3350

CC 4350

Distribution, US

Distribution,AU

Distribution,JP

CC 2230
Purchasing
US

CC 3230
Purchasing
AU

CC 4230
Purchasing
JP

CC 5230
Purchasing

CAN

CC 6230
Purchasing
SP

CC 2240
Management
US

CC 3240
Management
AU

CC 4240
Management
JP

CC 5240
Management
CAN

CC 6240
Management
SP

CC 5300
CAN
Sales & Distrib.

CC 6300
SP
Sales & Distrib.

CC 2250
Insurance
US

CC 3250
Insurance
AU

CC 4250
Insurance
JP

CC 5250
Insurance
CAN

CC 6250
Insurance
SP

CC 5310

CC 6310

Sales, CA

Sales, SP

CC 2260
HR
US

CC 3260
HR
AU

CC 4260
HR
JP

CC 5260
HR
CAN

CC 6260
HR
SP

CC 5350

CC6350

Distribution, CA

Distribution,SP

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 SAP America, OS.PPT - 10/13/97, Slide 21


AM - Depreciation Areas
USA

Canada

Chart of Depreciation

Australia Japan

Chart of Depr. Chart of Depr. Chart of Depr.

Depr. Areas

Depr.
Areas

Depr.
Areas

Depr.
Areas

Company
Code

Company
Code

Company
Code

Canada

Australia

Japan

Company Code

Pub/
Brewery

Taproom

Merch.

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 SAP America, OS.PPT - 10/13/97, Slide 22


AM - Asset Number Structure

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 SAP America, OS.PPT - 10/13/97, Slide 23


Asset Classification

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 SAP America, OS.PPT - 10/13/97, Slide 24


IM - Hierarchical Structure
Investment Management

Program

Orders (CO)

Projects (PS)
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 SAP America, OS.PPT - 10/13/97, Slide 25