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ERP SAP Study Material

Questions & Answers

Question. Why we define Creadit Control Area in SAP Enterprise Structure?
Answer. Credit Control area is used for customer credit management, and here we define the maximum credit limit in amount for the customer.

Question. What is Business Area in SAP Enterprise Structure?
Answer. Business Area denotes either the products or the locations of the company, and used for the internal reporting of profits.

Question. What is Functional Area in SAP Enterprise Structure?
Answer. Functional area denotes the departments of the company, and used for the internal reporting of the expenses.

Question. What is Consolidation Business Area in SAP Enterprise Structure?
Answer. Consolidation business area represents the groups of business area.

Question. What is FM area in SAP Enterprise Structure?
Answer. FM area represents the Financial Management area that is used for Fund Management.

Question. What is Controlling Area in SAP Enterprise Structure?
Answer. Controlling area is the main organizational unit of the company that is used for cost and managerial accounting. Basically it is used for Planned Cost and Actual Cost.

Question. What is Operating Concern in SAP Enterprise Structure?
Answer. Operating Concern is the main organization unit of controlling area that is used for Profitability Analysis.

Question. What is Valuation Area in SAP Enterprise Structure?
Answer. Valuation area is the organization unit on which the product is being valuated. It could be either on the Plant level or Company Code level.

Question. What is the meaning of Plant in SAP Enterprise Structure?
Answer. Plant represents the factory or the manufacturing unit of the company.

Question. What is the meaning of Location in SAP Enterprise Structure?
Answer. Location represents the different different addresses in a particular factory or the manufacturing unit. Location is used for the plant maintenance tasks.

Question. What is the meaning of Division in SAP Enterprise Structure?
Answer. Generaly, Division represents the Product Line of the company, and it is used for Sales and Distribution activities.

Question. What is the meaning of Sales Organisation in SAP Enterprise Structure?
Answer. Sales Organisation is the organisational component of the company that is responsible for sales/distribution activities and negotiation with customers.

Question. What is the meaning of Distribution Channel in SAP Enterprise Structure?
Answer. Distribution Channel represents the way through which the product reachs to the customer.

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