Enterprise structure in SAP

The Enterprise Structure in R/3 refers to the organizational structure of the Business. It consists of some organizational units which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. Organizational units handle specific business functions. For example, the company code organizational element encapsulates the financial accounting settings and data in the financial accounting module for an enterprise.
It’s primarily defined with three primary domain areas and is very similar to the finance organization structure used in an organization or sales organization structure used in SAP.



Finance & Controlling
Sales and Distribution
Finance and controlling
Following are the elements of FICO related Enterprise structure
Further to add on this we have separate enterprise structure for the FI and CO.
FI Organization Structure:
Client -> Company -> Co.code -> Bussiness area -> Functional area -> Credit control area
CO Organization Structure:
Operating concern -> controlling area -> Co.code -> Cost centers -> Internal orders
Client: A client in R/3 is a technical entity containing configuration, master data and transactions for an organization.
Company: A Company in SAP is represented by 5-character alphanumeric code and usually represents the enterprise or the Group company.
Company Code: A Company Code in SAP is the smallest organizational unit for which you can draw individual financial statements (B/S and Profit & Loss Account) for your external statutory reporting. It is denoted by a 4-character alphanumeric code.
Business Area: Business Areas correspond to specific business segments of a company, and may cut across different Company Code. They can also represent different responsibility areas.
Functional Area: The Functional Area is an organizational unit in Accounting that classifies the expenditures of an organization by function.
Credit Control Area: It helps in administering the credit management functions relating to the customers.
Controlling Area: It is the organizational unit within an institution, used to represent a closed system for cost accounting purposes. A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area.
Sales and Distribution
SD related enterprise structure defined under the company code are
Logistics related enterprise structure defined under the company code are:
  • Plants
  • Storage locations
  • Purchase organization
  • Purchase Group

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