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Problem-6 (Multi-Source-Mapping & Assignments)

An Enterprise Resource Planning (ERP) paradigm uses a range of organizational units designed exclusively for mapping sales and distribution process, such as the sales organization and distribution channel. Other organizational units, such as the company code or plant, are required in Sales and Distribution and other system areas.
 
The organizational units outlined here are some of the ones relevant to sales and distribution processes in the system.
 

Tab #1:

ERP Maker’s View:

General Organizational Elements Structure.

Tab #2:

Consultant’s Job and View:

Mapping and Assignment of Client’s organization structure to ERP maker’s structure.

Tab #3:

Client’s view of his Company set up.

For a company code, a complete independent accounting unit can be represented as the smallest organizational unit of external accounting. This includes the entry of all accountable transactions and the creation of all proofs for a legally required individual account closing, such as the balance sheets and the profit and loss statement.

A sales area is a combination of the sales organization, distribution channel, and division. It defines the distribution channel a sales organization uses to sell products from a certain division. For example, AA-02-120 could be a sales area where AA is a sales organization, 02 is a distribution channel, and 120 is a division.

A sales organization is responsible for sales and distribution of materials and services. Therefore, it is also liable for the sold products and responsible for the customers’ right to recourse.

A distribution channel characterizes the way in which goods and services are distributed.

You can group materials and services with the division.

A division can represent a certain product group, for example. Therefore, you can, for example, restrict price agreements with a customer to a certain division. In addition, you can conduct statistical analysis by division.

A plant represents the location from which materials are distributed and services are provided and corresponds to a distribution center. The relevant stocks are kept here.

An important step is to define the organizational structures. It requires thorough analysis of how your organization wants to run its business.

Each sales and distribution document such as a quotation or an enquiry or a sales order is assigned to exactly one sales area. This assignment cannot be changed. A sales area can belong to only one company code. This relationship is created by assigning the sales organization.

A sales organization is uniquely assigned to a company code. More than one sales organization can be assigned to a company code.

To use the sales and distribution functions in the system, you need at least one sales organization.

In the sales statistics, the sales organization is the highest summation level. All sales and distribution documents that is, all orders, outbound deliveries, and billing documents, are assigned to a sales organization.

Several distribution channels can be assigned to sales organizations.

Several divisions can be assigned to a sales organization. To use the sales and distribution functions in the system, you need at least one division.

To use sales and distribution functions in the system, you need at least one plant.

Each plant is uniquely assigned to a company code.

A plant can be assigned to several combinations of sales organizations/distribution channels, and vice versa.

No assignments in any other manners are possible.

The consolidated group, the JK Holding Inclusions, is divided into several independently operating subsidiaries:

JK US Private Limited in New York, United States

JK INDIA INC in New Delhi, India.

Sales and distribution of JK holding Inclusions, in India is organized at two different sales facilities, each of which has its clearly defined areas of responsibility:

 1000 Chennai
 1020 New Delhi.

The different ways through which goods reaches the consumer are

 12 Resale
 14 Service

The different product lines of the company are

 00 Cross-division
 02 Motorcycles
 08 Services

Before JK holdings confirms an order for a customer, they check from which delivering plant among the following

1000 Hyderabad
1100 Bangalore
1300 New Delhi
1400 Gandhi Nagar

will the material ordered is to be delivered and whether sufficient stock is available.

  1. Identify the correct roles of the respective organizational units below?
Sales Organization Distribution Channel  
02
12
14
1000
1020
  1. Which of the following is a close mapping of the Operation against the Location?
Gandhi Nagar, India 1000-12-00  
Sales Area
Sales Organization
Distribution Channel
Division
Loading Point
  1. Identify the Correct and Incorrect statements from below?
Correct Incorrect  
1000 Hyderabad can be assigned to both JK US Private Limited and JK INDIA INC
1100 Bangalore can be assigned to division 02 Motorcycles
1300 New Delhi can be assigned to Sales organization 1000 Chennai / Distribution channel 12 Resale in relation of One to Many
Both 1000 Hyderabad and 1100 Bangalore can be assigned to Sales organization 1000 Chennai / Distribution channel 1020 New Delhi
1020 New Delhi can be assigned to both 1300 New Delhi and 1400 Gandhi Nagar
  1. Which of the following is not essential to create a Sales Document?
Correct Incorrect  
Company Code
Sales Organization
Distribution Channel
Division
Plant

Solution-6 (Multi-Source-Mapping & Assignments)

  1. JK Holding Inclusions is the company, and JK US Private Limited, JK INDIA INC are the subsidiaries which are also the companies.
1000 Chennai and 1020 New Delhi are Sales and distribution facilities in India, each of which has its clearly defined areas of responsibility. So, they are sales and distribution organizations.
 
The different ways through which goods reach the consumer are 12 Resale and 14 Service and are called distribution channels.
 
The different product lines 00 Cross-division, 02 Motorcycles, 08 Services, are called divisions.
The correct selections must look like
 
Sales Organization Distribution Channel  
02
12
14
1000
1020
  1. According to the description, the customer has his plant at Gandhi Nagar. The closest term for a plant from the list of choices is the Loading Point.
1000-12-00 is the combination of Sales Organization, Distribution channel, and Division and is therefore a possible Sales Area.
 
Below are the correct selections.
 
Gandhi Nagar, India 1000-12-00  
Sales Area
Sales Organization
Distribution Channel
Division
Loading Point
  1. Regarding the assignments of the plant, we have seen the following possible assignments
Each plant is uniquely assigned to a company code.
 
A plant can be assigned to several combinations of sales organizations/distribution channels, and vice versa.

The first statement says that 1000 Hyderabad can be assigned to only one of the company codes:
 
JK US Private Limited
JK INDIA INC
 
and not both. Hence, the first choice is incorrect.
 
According to the second statement, both many-to-many (means both one-to-many and many-to-one) relations are possible between plants and the combinations of Sales organizations/ Distribution channels. Hence, the answer is as below
 
Correct Incorrect  
1000 Hyderabad can be assigned to both JK US Private Limited and JK INDIA INC
1100 Bangalore can be assigned to division 02 Motorcycles
1400 Gandhi Nagar can be assigned to both Sales organization 1000 Chennai- Distribution channel 12 Resale and 1020 New Delhi- 12 Resale
Both 1000 Hyderabad and 1100 Bangalore can be assigned to Sales organization 1000 Chennai-Distribution channel 1020 New Delhi
Sales organization 1000 Chennai can be assigned to several plants 1000 Hyderabad and 1100 Bangalore within the same company
  1. As explained, a sales document must be assigned to a Sales Area, which is a combination of Sales Organization, Distribution Channel, and Division.
A Company code is necessary so that a Sales Organization can be created.
 
There is no relation between the creation of the Sales document and a plant as yet. Hence, the solution must look like
 
Correct Incorrect  
Company Code
Sales Organization
Distribution Channel
Division
Plant




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