SAP S/4 Hana Lec.2 Roadmap of SAP Implementation Phases and Configuration of Enterprise Structure.

📘 SAP S/4HANA – Lecture 2
Roadmap of SAP Implementation & Enterprise Structure Configuration
1️⃣ Roadmap of SAP Implementation Phases

SAP uses methodologies such as ASAP (Accelerated SAP) earlier and now SAP Activate Methodology for S/4HANA projects.

Phases of SAP Implementation (SAP Activate):

Discover Phase

Understand business needs

Identify scope and value drivers

High-level planning

Prepare Phase

Project planning and team readiness

System setup and landscape preparation

Kick-off workshops

Explore Phase

Fit-to-Standard workshops

Gather requirements

Identify gaps and prepare solution design

Realize Phase

Configure system as per requirements

Perform custom developments (if needed)

Conduct unit, integration & user acceptance testing

Deploy Phase

Cutover activities

Data migration & reconciliation

End-user training

System Go-Live

Run (Operate) Phase

Post go-live support

Monitoring, optimization, and continuous improvements

2️⃣ Configuration of Enterprise Structure in SAP S/4HANA

The Enterprise Structure represents the organizational units in SAP that map to a company’s real-world structure.

Key Organizational Units in Financial Accounting (FI):

Client – Highest level; represents corporate group.

Company Code – Legal entity for which balance sheet & P&L are created.

Business Area – Internal reporting across company codes.

Functional Area – Classification of expenses (e.g., production, sales).

Segment – Used in segment reporting (IFRS compliance).

Key Organizational Units in Logistics (MM/SD/PP):

Plant – Location where materials are produced/stored.

Storage Location – Subdivision of plant for material storage.

Purchasing Organization – Responsible for procurement.

Sales Organization – Responsible for sales and distribution.

Distribution Channel – Defines how products reach customers (retail, wholesale).

Division – Product line.

Steps to Configure Enterprise Structure

Define Company

SPRO → Enterprise Structure → Definition → Financial Accounting → Define Company

Define Company Code

Assign local currency, chart of accounts, country settings

Assign Company Code to Company

SPRO → Enterprise Structure → Assignment → Financial Accounting

Define Plant / Storage Location / Sales Org / Purchase Org

SPRO → Enterprise Structure → Definition → Logistics

Assignments

Assign Plant to Company Code

Assign Purchasing Org to Company Code & Plant

Assign Sales Org to Company Code

Practical Example (Enterprise Model)

Client: 100 (Global Group)

Company: SAP100 (SAP Group)

Company Code: 1000 (Pakistan Entity)

Plant: 1100 (Lahore Plant)

Storage Location: 1110 (Raw Material), 1120 (Finished Goods)

Sales Org: 2000 (Domestic Sales)

Purchasing Org: 3000 (Central Procurement)

3️⃣ Importance of Enterprise Structure

Serves as the foundation of SAP system configuration.

All business transactions (FI, MM, SD, PP, HCM) depend on it.

Wrong configuration can lead to errors in reporting, integration, and compliance.