| SAP Organization Structure | SAP Definition and Use |
| Client | The client is the highest level in the R/3 System hierarchy. Specifications that you make or data that you enter at this level are valid for all company codes and for all other organizational structures |
| Company Code | R/3 Company Code is the smallest organizational unit in which complete, independent accounting can be carried out. This includes the posting of all transactions subject to posting and the creation of all items for legal financial statements - a balance sheet and profit and loss statements can be created according to respective commercial legislation. |
| Controlling Area | Organizational unit in an organization that represents a closed system used for cost accounting purposes. A controlling area may contain one or more company codes, which can operate in different currencies, if required. The company codes within a controlling area must all use the same operational chart of accounts. Internal business transactions are portrayed in the controlling area |
| Profit Center | A profit center is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. In profitability accounting at the profit center level, all costs and revenues from the profit-relevant logistic activities and other allocations are transferred as statistical postings to the relevant profit centers |
| Cost Centre | Organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on:Functional requirements; Allocation criteria; Physical location; Responsibility for costs |
| Operation Concern | An operating concern represents an organizational unit in your company for which the sales market has a uniform structure. It is the valuation level for Profitability Analysis (CO-PA). |
| Chart of Depreciation | You use depreciation areas to calculate different values in parallel for each fixed asset for different purposes. Charts of depreciation are used in order to manage various legal requirements for the depreciation and valuation of assets. These charts of depreciation are usually country-specific and are defined independently of the other organizational units. |
| Depreciation Area | |
| Sales Organization | In R/3, Sales Organization stands for a selling unit legally responsible for product liability and other recourse claims made by customers. Each Sales Organization is assigned to exactly one company code for which you enter all accounting details of the sales organization. Sales Organization, Distribution Channel, and Division together are known as "Sales Area" and is used for sales reporting purposes. |
| Distribution Channel | Generically, an R/3 Distribution Channel is the way through which saleable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organizations. The Distribution Channel is used in combination to Sales Organization and Division (forming a "Sales Area") for reporting purposes |
| Division | A Division is an R/3 organization unit used to group different product groups together for analysis. Each product can only belong to a single division. You can assign a division to one or more sales organizations |
| Sales Office | In R/3, a Sales Office is an internal organization unit which reflects the geographical aspects of the sales organization in business development and sales |
| Sales Group | In R/3, a sales group is a subdivision of a sales office which groups together a team of sales staff. For example, a sales group may sell selected product divisions or deal with selected customer groups |
| Sale Person | A salesperson is an employee in a sales organization. Individual personnel master records are used to manage data about salespersons. You can assign a sales person to a sales group in the personnel master record |
| Shipping Point | In R/3, a Shipping Point is an independent organizational entity responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to your own warehouses. A delivery is always carried out by one shipping point only. In R/3, Shipping Points can be determined by a combination of criteria being delivery plant, type of shipping (for example, train, truck) and loading equipment |
| Loading group | Key that identifies the equipment required to load the goods. For example, a crane or fork lift truck could be defined as a loading group. |
| Loading Point | In R/3, a loading point is a sub-division of a shipping point where goods are loaded |
| Plant | In R/3, Plant represents a manufacturing location. It also can be use as a receiving warehouse for purchased goods. MRP planning is on plant level. |
| Storage Location | In R/3, Storage Location represents a subdivision of a plant. It defines the location of materials within a plant. It may be a warehouse, store room or a specific location within a warehouse of a warehouse or storeroom. It is the lowest level in organisation if warehouse management is not used |
| Purchasing Organization | Purchasing Organisation unit is responsible for procuring materials and services for one or more plants with the same company. And for the negotiating of prices and terms of delivery with vendors. It can be further divide into purchasing groups responsible for day to day activities |
| Purchasing Group | An R/3 Purchasing Group is individual buyers or groups of buyers responsible for contacting vendors |
| MRP Controller | The MRP controller is a person or a group of persons responsible for monitoring material availability. You can use the number entered here, for example, to select the planning results per MRP conroller |
| Production Scheudler | Production schedulers to materials within the application responsibilities for a materials within pr |
