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SAP SRM Org structure- Concepts

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SAP SRM Org structure- Concepts

https://www.linkedin.com/pulse/sap-srm-org-structure-concepts-sujit-deshmukh?trk=hp-feed-article-title-like

 

Concepts of SRM Organization Structure

Applies to: SAP SRM 7.0 SRM 5.0

Summary: Organization structure is one of the critical application component of SAP SRM System. This is the controlling point for ensuring users are able to create and process documents they are supposed to do        in their day to day business. This document describes features, concepts and details of SRM Organization Structure. 

Author:       Sujit Deshmukh, Certified SAP MM, and SAP SRM consultant

Company:  Atos India Pvt. Limited

Created on: 14 September 2012

Goals of this Document

Discuss and Describe the Benefits of Organizational Management in SRM Discuss the Components of Organizational Plan Importance and Role of Attributes in Org Structure Various Tools available for maintaining Organizational Structure

 Organizational Management in SRM

Organizational Management in SRM is a function of the following:

Depicting Structure of various Companies -in terms of their reporting Structure Depicting various Periods In terms of validity of various positions and departments Implementing or Using other components (e.g. Workflow) - In terms of finding the correct approval hierarchy for documents created on SRM Planning Organizational Changes - In terms of planning the proposed changes in the organization hierarchy and implementing it in the enterprise

 Organizational Structure in SRM

SAP SRM heavily relies on Organization Structure Hierarchy for SRM users to perform their day to day operations. There are three types of hierarchies maintained in SRM:

SRM Organization Hierarchy Vendor Organization Hierarchy Purchasing Organization Hierarchy

 Out of the above three structures, Vendor Organization is maintained as a part of replication of Business Partners from ECC to SRM. Purchasing Organization Hierarchy is maintained in SRM manually. This is done on the lines of Purchasing Organization—Purchase Group reporting structure in backend ECC. We can also create manual purchasing organization hierarchy LOCAL in SRM

There are two ways we can maintain SRM Organization Structure: 

Maintain the SRM Organization Structure Manually SAP HR hosts an Enterprise’s Organization Hierarchy with full reporting structure. This hierarchy can be replicated from HR to SRM via ALE Distribution. This avoids duplicate data maintenance for maintain the organization hierarchy in HR as well as SRM.

 Organization Structure

Business Workflow uses organization structure to determine which agents are responsible for approving documents in most of the cases. Org structure is used by self service transaction for creation of user master records. Purchase Organizations and Purchasing Groups are determined from org structure while creating Shopping Carts. Attributes of the users which are required for creating application documents in SRM are set up in Org structure.

Organization Structure: The hierarchy in which various departments of an enterprise are arranged according to the tasks functions assigned to them Root Org Unit: This is the highest Organization Unit at the highest level of an Organization Structure. This org unit is needed to be created first of all while setting up the enterprise structure for an enterprise. Organization Unit: Organization Units are the objects that make up organizational plans. Org Unit represent any type of organizational entity found in any enterprise for example subsidiaries, divisions, departments, or special project teams. The Organizational units are represented by Object type O. Users : Users are placed in various org units through their assignment to Positions. Positions will be discussed later in this Unit. Users are represented by object type US.

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Z

Purchasing Structure

Purchasing Structure is the hierarchy in which various purchasing departments and groups of an enterprise are arranged according to the tasks functions assigned to them

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Purchase Organizations in SRM

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Function tab in Org structure represent the function of that org unit in the system. The department may be serving as a Company, Purchase Organization or a Purchasing Group. We need to maintain the function of org unit appropriately. Just like Highest Level Org Unit in Org structure, Purchasing structure has a Highest level org unit Each Purchasing Organization in the Enterprise is represented by an Org Unit in the Organization structure. Users (professional purchasers) are assigned to the Org units , If the purchasing organization is local. In case when the purchasing organization is in the ERP back end, the organizational units created in EBP are used only for passing the necessary values to Back End system. We just assign purchase groups to the org units representing Purchase Organizations. We don’t assign any user to this org unit in this case.

 Purchase Groups in SRM

Org Units for Purchase groups are created when we have purchase organizations in Backend. Product and Organizational responsibilities for purchase groups are maintained in the Responsibilities tab. Product Responsibilities are Optional. If your procurement department is organized by product category, you should assign all your product categories to purchasing groups using this attribute. If you fail to do so, all the orders relating to unassigned product categories will be assigned by the system to the same purchasing group. This only makes sense if you intend a particular purchasing group to assume the role of dispatcher Organizational responsibility is Mandatory. You can use the input help to select the departments or groups for which the purchasing group is responsible

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Responsibility Tab – is used only for maintaining the Attributes of Purchase Group. Product Responsibility and Organizational Responsibilities are maintained for purchase groups in this tab.

Finding Purchasing Data in SRM

Step 1: User Creates a Shopping cart for a product Category E12345

Step 2: System picks up User’s department from organization structure. Object id of the department is 50000614

Step 3: This department is available in the organizational responsibilities of the Purchasing Group (one or more) in the org structure. If the department of the user is in the organizational responsibilities of more than one purchase groups, system will pick both the purchase groups.

Step 4: Then the system will determine for which product categories the respective purchase organizations are responsible for. From the purchase group, purchase organization is derived by the system from org structure.

 Vendor Organization Structure

We no longer use PPOMA_BBP to enter external vendor organizational units and vendors. Instead they are represented in PPOMV_BBP, where vendor groups (VGs) are entered as organizational objects (including the vendors that belong to the groups). The highest level org unit shows the Root for External Vendors which generally represent the Vendor Groups from one source system. Next level shows the Vendor Group under that top node Under Vendor Group, individual vendors are maintained. Whenever Vendors are created or replicated from R/3, those vendors will get assigned to the vendor group mentioned here. Attributes can be maintained at the top level , which get inherited in the Vendor Groups and individual Vendors below in the Vendor Org Model

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Notes on Vendor Org Structure for Upgrade of SRM 4.0 and older versions to SRM 7.0

Vendors can not be represented by an organizational unit in the org structure. So the employees of Vendors (if have account in SRM) will no longer report to any organizational unit in SRM any more. Vendors are now grouped into new organizational objects called vendor groups (VGs). It is not necessary to have one VG per vendor, as it used to be in the case for organizational units. System groups the vendors with identical attributes into vendor groups. Positions under the vendor org units will no longer be required. Report BBP_XPRA_ORGEH_TO_VENDOR_GROUP is used to migrate the vendors from old org structure to the Vendor Org structure at the time of Cutover during the Upgrade of SRM 4.0 or older versions. This report , if gets cancelled before completion, can be rescheduled again with same variant and system will pick up the conversion from the point it was left. Report BBP_XPRA_ORGEH_TO_VENDOR_GROUP copies only the standard attributes for external business partners: BUK, CAT, CUR, TOG, VENDOR_ACS, and VENDOR_SYS

 Object Types in Organization Structure

Each object in Org structure has got a Object type and Object id assigned to it. The Object Type and Object id make each object Unique in the Org Structure. Following are the object types in SRM Organizational Structure:

Org Unit: Org Unit Object type is always represented by ―O‖. Org Units describe various units of an enterprise which are structured according to their tasks and functions. Together several organizational units and their hierarchical relationships form an Organizational Structure. Position: Position Object type is always represented by ―S. Positions are concrete and can be occupied by holders at any company. Each Position is generally occupied by one employee but multiple assignments are also possible. Positions can be 100% filled, partially filled or vacant.   One position can be shared by several employees, each working less than full time. For example, two employees can hold 60% and 40% of one position Central Person: Central Persons are the objects which hold positions in SRM Org structure. CP Object type is always represented by ―CP. The SU01 users are technically of no use in EBP unless they are incorporated into the Org structure. Each user id in Org structure: Belong to a certain Org Unit Definitely has a Position created for it. Has a Business Partner Id attached to it via Central Person Record Has a SU01 id When a Object is created, an Object Id must be assigned to it. An object ID must be assigned for every object. The object is identified by a combination of plan version, object type, and object ID. Object IDs are numeric. They cannot contain any letters. We do not need to use the object ID to find objects because you can easily find objects using search terms, parts of it, and certain characteristics. SAP recommends that you use internal number assignment. Note: The name of the object is not part of the object key. This allows the same object number to be maintained in several languages.

Object Validity Period

Each Object in Organization Structure has got a Validity Period assigned to it. Functions of Validity Periods are as follows:

Validity Periods allows you to define the life span of an Object It helps in identifying changes to your organization while retaining historical data Allows us to evaluate the organizational structure on key dates We must assign a validity period to every Org Structure record we create. By doing this, we can depict all changes that take place in the company, which provides us with a dynamic view of our enterprise. The validity period enables us to evaluate key data or periods in the past, present or future. The validity of an object’s relationships and attributes can exist only within the life span of the object . If an object is delimited, all the object’s relationships and characteristics are also automatically delimited. Related objects are not changed. However, a relationship is valid only if both objects themselves are valid.

Object Relationships

Organization Structure is created by creating relationships between organizational Units. Relationships play a key role in smooth functioning of applications accessing Organization Structure.

Organization Unit: An Organizational Unit can have many subordinate organizational units, but only one higher level organizational Unit. Organizational Units Reports to another Org unit Can incorporate another Org Unit Positions and Org Units: -Positions are related to organizational units in the org structure. Positions inherit certain characteristics of the organizational unit such e.g. CoCode, Cost Center etc. Belong to an Organizational Unit An Organizational unit incorporates positions When a person holds a position, they also inherit some of the characteristics of the related organizational unit. Position and Person(CP) A person is assigned as holder of a position The position is the object that links persons or users to the organizational plan. A position can be held by more than one person or user and a person can hold more than one position Note: a one-to-one relation between a Position and a Person is the ideal Position and User Relationship between Position (S) and User (US) is derived from two relationships S-CP and CP-US. Organizational Unit and Chief Position A position manages a Organizational Unit Each Org Unit is ideally managed by a chief position. In the standard system, the relationship "manages" or "is managed by" is used to indicate that a position is responsible for managing an organizational unit. If there is no chief position in an organizational unit, this organizational unit is managed by chief of higher level Organizational Unit.

Relationships are stored in info type 1001. In SRM we can find the relationships between various Org Structure Objects in table H

Notes on Vendor Org Structure for Upgrade of SRM 4.0 and older versions to SRM 7.0

Vendors can not be represented by an organizational unit in the org structure. So the employees of Vendors (if have account in SRM) will no longer report to any organizational unit in SRM any more. Vendors are now grouped into new organizational objects called vendor groups (VGs). It is not necessary to have one VG per vendor, as it used to be in the case for organizational units. System groups the vendors with identical attributes into vendor groups. Positions under the vendor org units will no longer be required. Report BBP_XPRA_ORGEH_TO_VENDOR_GROUP is used to migrate the vendors from old org structure to the Vendor Org structure at the time of Cutover during the Upgrade of SRM 4.0 or older versions. This report , if gets cancelled before completion, can be rescheduled again with same variant and system will pick up the conversion from the point it was left. Report BBP_XPRA_ORGEH_TO_VENDOR_GROUP copies only the standard attributes for external business partners: BUK, CAT, CUR, TOG, VENDOR_ACS, and VENDOR_SYS

 

Object Types in Organization Structure

Each object in Org structure has got a Object type and Object id assigned to it. The Object Type and Object id make each object Unique in the Org Structure. Following are the object types in SRM Organizational Structure:

Org Unit: Org Unit Object type is always represented by ―O‖.

§ Org Units describe various units of an enterprise which are structured according to their tasks and functions. Together several organizational units and their hierarchical relationships form an Organizational Structure.

§ Position: Position Object type is always represented by ―S‖. Positions are concrete and can be occupied by holders at any company. Each Position is generally occupied by one employee but multiple assignments are also possible.

§ Positions can be 100% filled, partially filled or vacant.

 

 

§ One position can be shared by several employees, each working less than full time. For example, two employees can hold 60% and 40% of one position

§ Central Person: Central Persons are the objects which hold positions in SRM Org structure. CP Object type is always represented by ―CP‖.

§ The SU01 users are technically of no use in EBP unless they are incorporated into the Org structure. Each user id in Org structure:

§ Belong to a certain Org Unit

§ Definitely has a Position created for it.

§ Has a Business Partner Id attached to it via Central Person Record

§ Has a SU01 id

§ When a Object is created, an Object Id must be assigned to it.

§ An object ID must be assigned for every object. The object is identified by a combination of plan version, object type, and object ID.

§ Object IDs are numeric. They cannot contain any letters.

§ We do not need to use the object ID to find objects because you can easily find objects using search terms, parts of it, and certain characteristics. SAP recommends that you use internal number assignment.

§ Note: The name of the object is not part of the object key. This allows the same object number to be maintained in several languages.

 

Object Validity Period

Each Object in Organization Structure has got a Validity Period assigned to it. Functions of Validity Periods are as follows:

§ Validity Periods allows you to define the life span of an Object

§ It helps in identifying changes to your organization while retaining historical data

§ Allows us to evaluate the organizational structure on key dates

§ We must assign a validity period to every Org Structure record we create. By doing this, we can depict all changes that take place in the company, which provides us with a dynamic view of our enterprise.

§ The validity period enables us to evaluate key data or periods in the past, present or future.

§ The validity of an object’s relationships and attributes can exist only within the life span of the object . If an object is delimited, all the object’s relationships and characteristics are also automatically delimited. Related objects are not changed. However, a relationship is valid only if both objects themselves are valid.

 

Object Relationships

Organization Structure is created by creating relationships between organizational Units. Relationships play a key role in smooth functioning of applications accessing Organization Structure.

§ Organization Unit: An Organizational Unit can have many subordinate organizational units, but only one higher level organizational Unit. Organizational Units

§ Reports to another Org unit

§ Can incorporate another Org Unit

§ Positions and Org Units: -Positions are related to organizational units in the org structure. Positions inherit certain characteristics of the organizational unit such e.g. CoCode, Cost Center etc.

§ Belong to an Organizational Unit

 

 

§ An Organizational unit incorporates positions

§ When a person holds a position, they also inherit some of the characteristics of the related organizational unit.

§ Position and Person(CP)

§ A person is assigned as holder of a position

§ The position is the object that links persons or users to the organizational plan.

§ A position can be held by more than one person or user and a person can hold more than one position

§ Note: a one-to-one relation between a Position and a Person is the ideal

§ Position and User

§ Relationship between Position (S) and User (US) is derived from two relationships S-CP and CP-US.

§ Organizational Unit and Chief Position

§ A position manages a Organizational Unit

§ Each Org Unit is ideally managed by a chief position. In the standard system, the relationship "manages" or "is managed by" is used to indicate that a position is responsible for managing an organizational unit. If there is no chief position in an organizational unit, this organizational unit is managed by chief of higher level Organizational Unit.

Relationships are stored in info type 1001. In SRM we can find the relationships between various Org Structure Objects in table HRP1001

Attributes and Attribute Inheritance

Z

A user is of no use if he/she is not integrated into the Organization Structure. In order for a user to perform the activities defined for him as per his role, he will need a minimum set of attributes defined for him/her in the organization structure. Role in SU01 id of a user provide him access to carry out different transactions whereas Attributes allows him to carry out those transactions

§ Attributes can either be defined for a position or an organizational Unit

§ Who can Change User Attributes

§ User can change their own attributes i.e. attributes of its position (depending on their authorization), using the web application for changing Attributes. This is done under Settings Link in SRM Home Page.

§ Managers can change the attributes defined for their organizational unit (s) or for users in their organizational unit (s) using the Web application Changing Attributes

§ System Administrator

Extended Attributes

Z

§ Product Category

§ In the product categories section of Extended we can maintain Product categories which can be used by the user while Shopping. If there is no product category here, user will not be able to select any product category while creating SCs

§ Locations

§ In Locations section of Extended we can maintain Locations which are synonymous with plants in R/3. The values maintained here will be available for the user to select these values as location while creating shopping carts.

§ Storage Locations

§ In Storage Location Section of Extended we can maintain Storage Locations which are synonymous with Storage locations in R/3. The values maintained here will be available for the user to select these values as storage location while creating shopping carts. The value is maintained here if Direct Procurement is used.

§ PO Value Limits

§ Value limits put here are used in approval workflow defined by value limits for Budget and spending limits of the person.

Attribute Inheritance

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§ Attributes are maintained for each scenario in transaction SM30. Inheritance can be activated for each attribute in this table.

§ These attributes will work in organization structure as per its characteristics defined in this table.

§ Caution: Do not change any delivered settings without reason, for example, an SAP Note. However, you can maintain your own attributes in this table and change the inheritance logic for common attributes, depending on your company’s requirements.

§ Characteristics of an Attribute

§ An attribute is generally inherited by all organizational units below the organizational unit where it was defined.

§ Attributes can be defined at any level of the organizational structure. In order to avoid redundant work, maintain attributes at highest possible level.

§ Attributes can be defined as visible or changeable for every user in customizing

§ If there are several values for one attribute, you can select one as a default. Values for attributes can be excluded also.

 

Common Attributes

Z

 

Business Partners

§ The business partners in EBP are based on the role based concept: An internal or external business partner is created in SRM for every person, organization, or group of people who could be involved in a business transaction.

§ Contact persons as well as Organizations have a Business Partner Record associated with it

§ There can be a number of BP Roles can be defined within a business partner

§ One BP can have several roles

§ Business partners aggregate the master data of a person, organization, or group of people in the organization.

§ Business Partner Relationships

§ Two business partners have relationships with each other.

§ Few relationships are time-dependent

§ Attributes are connected to relationships for example

§ Contact person: Relationship among an organization as a BP and a person as a BP.

§ Company participation: relationship among two BPs that are organizations

Note: Partner function is used to assign corresponding Business Partner to the relevant Documents of Business Transactions

§ Internal Business Partners

§ Requestor

§ Purchasing Company

§ Goods Recipient

§ Location

§ Ship to Address

§ Invoicing Recipient

§ Employee

§ External Business Partners

§ Bidder

§ Vendor

§ Preferred Vendor\ VENDOR_ACS

System where Accounting for Vendor has to be checked

Yes

 

 

Business Partners

§ The business partners in EBP are based on the role based concept: An internal or external business partner is created in SRM for every person, organization, or group of people who could be involved in a business transaction.

§ Contact persons as well as Organizations have a Business Partner Record associated with it

§ There can be a number of BP Roles can be defined within a business partner

§ One BP can have several roles

§ Business partners aggregate the master data of a person, organization, or group of people in the organization.

§ Business Partner Relationships

§ Two business partners have relationships with each other.

§ Few relationships are time-dependent

§ Attributes are connected to relationships for example

§ Contact person: Relationship among an organization as a BP and a person as a BP.

§ Company participation: relationship among two BPs that are organizations

Note: Partner function is used to assign corresponding Business Partner to the relevant Documents of Business Transactions

§ Internal Business Partners

§ Requestor

§ Purchasing Company

§ Goods Recipient

§ Location

§ Ship to Address

§ Invoicing Recipient

§ Employee

§ External Business Partners

§ Bidder

§ Vendor

§ Preferred Vendor

 

 

§ Contact Person

§ Ship From Address

§ Invoicing Party

 

User Maintenance

An EBP user is an SU01 User plus

Business partner Position Central Person Relations between these Objects

EBP user can be maintained by

Self Service function Administrator Manager Single EBP users can be created by Self Service creation (Subject to approval) Administrator Creation Generic User Creation Using USERS_GEN Transaction

 

 

 

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