Exercise 1

Business Case:
Kellogg foods is planning to implement SAP in US and Canada. Each business unit handles its
own sales. Both US and Canadian businesses operate independently (profit and loss are done
separately).
In order to keep the scope in control, Kellogg project management has decided to start the
implementation of the project for following product lines:
USA Canada
Cereals Cereals
Cookies Frozen Waffles
Cookies

Also, during the blueprinting phase, the project team has identified three different ways that
Kellogg takes their products to market :
USA Canada
Wholesalers (such as Costco,
Sams)
Retailers (Wal-Mart, Kroger,
target)
Retailers (Wal-Mart, Kroger,
target)
Online retailers (such as
Amazon)
Online retailers (such as
Amazon)



Tasks:
1) Identify the no of company codes to be created.
2) Create sales organizations as per the requirement and then assign the sales organizations to
company codes.
3) Create distribution channels and divisions and assign them to sales org.
4) Define sales areas according to Kelloggs business structure.

Definitions:
Sales organization in SAP refers to an organizational unit, which sells and distributes the organizations
products, negotiates the terms of sales with customers and assumes legal responsibilities for these
activities. It is a basic requirement and pre-requisite for the creations of master data and for the
execution of business transactions in the SD module.
Distribution channel in SAP refers to the sales type, which a company utilizes in distributing its products
to its customers. The distribution channel code to be used is as follows:
Division refers to the grouping of products for sales purposes.

Update on 02/23/2012

Kellogg has two plants, one in Chicago, IL and other in Vancouver, Canada. All customers in sales
organization US will be served out of Chicago plant and all the customers in Canada through the
plant in Vancouver. Each plant has two storage locations 1000 and 2000.
Kellogg will use business area 1500
Kellogg has sales offices in US and Canada. Each sales office has three sales groups.
Tasks:
As per the above requirements, create plant, sales office, and sales group.
Do all the required assignments in Enterprise structure Assignment tab.
Define Common Distribution Channel and Division:

With the organizational entities in hand, Kellogg will have lot of master data. So Kellogg decided to
rationalize their master data. A business decision was taken that the master data both pricing and
customer/master data will be shared across multiple distribution channels and divisions.

Tasks:
First, clearly understand the concept of common distribution channel and division. Use F1 and
read SAP provided documentation.
Maintain common distribution channel and division for your organizational entities.




Customer Master Configuration:

First, create a customer from VD01 using the sales area you created with account group 0001.
Kellogg has four different types of customer groups: Sold to, ship to, Payer, Bill to.
All business partner creations are determined via Account Groups. In SAP R/3, account groups
for each partner functions will determine the screens and fields that are required. The account
groups and number ranges are created partner functions as follow:
Maintain a table as below by creating different account groups for all the four different
customer roles.
Business Partner Account
Group
No. Range
Assignment
Number Range
Kellogg Sold-to party ZABC1 A1
0000100000-0000199999
Kellogg Ship-to party ZABC2 A1
0000100000-0000199999
Kellogg Bill-to party ZABC3 A1
0000100000-0000199999
Kellogg Payer ZABC4 A1
0000100000-0000199999

Make sure you add all the required partner functions in SD Basic Functions Partner
Determination.
Create customers for all the account groups using the new account group created.
Now go to SE16n and try to understand the table structures. Pull up all the customers created
for your user id.
Understand the difference between general and sales view.