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R 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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Page 1: Organizational Structure Presentation - Sprint€¦ · PPT file · Web viewOrganizational Structure Presentation - Sprint ... Times New Roman Arial Wingdings Monotype Sorts Symbol

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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

ProcurementProcurementLogistics 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

Sales Oper Planning MPS MRP Order

Settlement

Costing

Inventory

Manufacturing Execution

Capacity

Financial and Managerial Reporting and Analysis

ProductionProduction

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

Organizational Structure Review

3000US #1

90Pale Ale

93Stout

3000US

3000US

3000US

90Pale Ale

90Pale Ale

93Stout

03Wholesale

93Stout

BusinessArea

PurchasingOrganization

Division/Plant

DistributionChannel

Division

SalesOrganization

Organizational StructureOrganizational Structure3000US

4000Australia

Chico 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.

Tap Room

Brewing Plant

Tap RoomPlant

United States Canada

Plants

Purchasing Organizations and PlantsPurchasing Organizations and Plants

Organizational Elements - MM

Singapore Japan Australia

Brewery Retail

Retail Plant

Dry Inventory

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 AleDivision

3000US

03Wholesale

SalesOrganization

DistributionChannel

3000US

Chico Creek Brewing Company

93Stout

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

Chico Creek Brewing Company

3000AU

5000Singapore

4000Japan

5000Canada

8000Tap Rm.

9000Catering

1000Bakery

2000Merchandise

04Direct Sale

03Wholesale

05Retail

92Porter

93Stout

94Seasonal

91Hefe

90Pale Ale

04Direct Sale

80Hats

60Shirts

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 Re 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

90Pale Ale

93Stout

2000US

2000US

2000US

90Pale Ale

90Pale Ale

93Stout

03Wholesale

93Stout

BusinessArea

PurchasingOrganization

Division/Plant

DistributionChannel

Division

SalesOrganization

Organizational StructureOrganizational Structure2000US

3000Australia

Chico Creek Brewery