DFPS - Enterprise structure DFPS in combination with MM/PM

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Joined: Thu Jan 18, 2007 2:47 am

DFPS - Enterprise structure DFPS in combination with MM/PM

Post by michael_oslo » Thu Jan 18, 2007 6:14 am

Dear all,

I hope somebody can help me with this one. The customer is currently using IS DFPS (military) for some org flex and financial accounting. The solution will now be enhanced with purchasing/supply, inventory management with MM (possibly WM), some PM (work order) and SRM. We are currently evaluating possible enterprise structure scenarios. Our consulting partners proposal is one company code, one plant and a lot of storage locations/mrp areas. There will be a lot of "intercompany sales" transaction between different military departments which they are planning to solve with STO between storage locations. However we are not sure if this is an optimal enterprise structure. We are currently evaluating the following aspects (single vs. several plants):

- General scalability (less maintenance now, but less flexibility when e.g. integration with SCM components)
- Material valuation (common inventory valuation, common posting to G/L account)
- Customs and taxes (problems with import/export when everything happens within one plant with one country code)
- Purchasing organisation
- Intercompany sales (not sure if and how STO scenario between storage locations can be represented in financial accounting)
- master data maintenance (less effort and complexity with single plant)

I understand that everything depends on scenario details but I am wondering if somebody knows how DFPS structures would affect this analysis. I would appreciate any kind of help/comments.

Thanks in advance.

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Re: DFPS - Enterprise structure DFPS in combination with MM/PM

Post by brianlbailey » Wed Jan 07, 2009 4:23 pm

Michael -
Did you ever get resolution to this question?

Where you able to move forward with a two company code structure?

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Re: DFPS - Enterprise structure DFPS in combination with MM/PM

Post by michael_oslo » Thu Jan 08, 2009 3:19 am


we have chosen to proceed with a one-plant/one company-code strategy. This has resulted in both advantages and disadvantages.

Inter-/Intracompany business transactions is now based on a customized solution which posts economic postings based on e.g. stock transfers. But since this is not standard it is difficult to monitor and not very flexible or scalable. As a "soft fact" you could say that you should model your enterprise structure based on how your enterprise looks like (physically, geographically, organizationally,...). The plant objects controls a lot in SAP, especially when it comes to integration between modules. You should avoid to introduce virtual objects. To use storage location to model your enterprise structure has become easier having DFPS, but be careful and do a detailed analysis of all consequences.

Main advantages of one plant:
-- master data maintenance
-- less customizing

Main disadvantages:
-- integration DFPS to standard logistics / MRP
-- locking entries material master on plant level (every movement locks the material for the entire organization)
-- no flexibility in material pricing, account assignment for material movements

We will most probably start an analysis in the near future if and how we have to modify our enterprise structure.

Please let me know if you have any experience on that topic. Would be interesting to hear other oppinions, experiences and advices.

Thanks and regards

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Joined: Tue Dec 28, 2010 2:32 pm

DFPS - Enterprise structure DFPS in combination with MM/PM

Post by krismarks1 » Tue Dec 28, 2010 3:21 pm

In USA, some (as of now more than one) of the SAP implementation in DoD level are using two company code. Both ECC and IS-DFPS are involved in this scenario.

When, materials are brought (from AMC/LMP), using AWCF (Army Working Capital Fund), it is not consumed immediately. Due to that (material not consumed), they use second company code to hold the material, until it is consumed/issued.

This is not the case with General Fund.

DFPS Solution has no say in how your company code and plant should be. It is purely a SAP Org structure deal.

FE (Force Elements) are same like Cost Element structure. Only thing make it cumbersome are the realtime changes in Tacticval world, deployment and Property Book (Fixed Assets) and Re-imbursable jobs.

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