SAP ORGANISATION STRUCTUREPARTHA TRIPATHI

SAP ORGANISATION STRUCTURE

• THIS HELPS IN MAPPING ORGANISATION STRUCTURE IN SAP

• THIS IS REQUIRED TO DISTINGUISH LEGAL ENTITY

• THIS IS REQUIRED TO DISTINGUISH VARIOUS ENTITIES OF AN ORGANISATION

BUSINESS VIEW

MAIN CATEGORIES

• FINANCIAL

• OPERATING CONCERN

• CONTROLLING AREA

• CREDIT CONTROL AREA

• COMPANY CODE

• HUMAN RESOURCE

• PERSONNEL AREA

• LOGISTICS

• PURCHASING ORGANISATION

• SALES ORGANISATION

• PLANT

CLIENT

IN COMMERCIAL ORGANISATION AND TECHNICAL TERMS A

SELF CONTAINED UNITS CONTAINING ITS OWN SET OF

PROGRAMS, TABLES AND MASTER AND TRANSACTION

RECORDS

OPERATING CONCERN

A REPRESENTATION OF AN ORGANISATION WHERE PROFITABILITY IS CUMULATED. IT IS TOPMOST

ORGANISATION IN TERMS OF PROFITABILITY. MULTIPLE CONTROLLING AREA CAN BE ASSIGNED

TO AN OPERATING CONCERN. IT IS SUB DIVIDED INTO PROFITABILITY SEGMENTS AND PROFIT

CENTERS

CONTROLLING AREA

AN ORGANISATION UNIT FOR COST ACCOUNTING AREA OF THE COMPANY. IT CAN HAVE ONE

OR MULTIPLE COMPANY CODE USING DIFFERENT CURRENCIES BUT THESE COMPANY CODE

SHOULD HAVE SAME OPERATIVE CHART OF ACCOUNTS. IT IS DIVIDED INTO COST CENTERS

CREDIT CONTROL AREA

AN ORGANIZATIONAL UNIT RESPONSIBLE FOR GRANTING AND MONITORING CREDIT TO THE

CUSTOMERS. THIS CAN MONITOR SINGLE OR MULTIPLE COMPANY CODES. CREDIT

INFORMATION CAN BE MADE AVAILABLE FOR A CUSTOMERS IN A CREDIT CONTROL AREA.

COMPANY CODE

IT IS SMALLEST ORGANIZATIONAL UNIT FOR ACCOUNTING PURPOSE WHICH HAS ITS OWN SET

OF ACCOUNTS AND USED AS A SEPARATE LEGAL ENTITY FOR EXTERNAL REPORTING. ALL

FINANCIAL TRANSACTION ARE RECORDED IN A COMPANY CODE.

PERSONNEL AREA

AN ORGANIZATIONAL UNIT REPRESENTING A HIGHEST LEVEL IN TERMS OF HUMAN RESOURCES

OR PERSONNEL ADMINISTRATION. THERE CAN BE MULTIPLE PERSONNEL AREA IN A COMPANY

CODE. IT IS DIVIDED INTO PERSONNEL SUB AREAS.

PURCHASING ORGANISATION

AN ORGANIZATIONAL UNIT IN TERMS OF PURCHASING. IT IS DIVIDED INTO PURCHASING

GROUPS. THERE CAN BE MULTIPLE FORMS PURCHASING ORG.

ENTERPRISE WIDE: ONE PURCHASING ORG FOR ALL THE COMPANY CODES

COMPANY SPECIFIC: ONE PURCHASING ORG PURCHASING FOR ONE COMPANY CODE

PLANT SPECIFIC: ONE PURCHASING ORG PURCHASING FOR ONE PLANT.

THE MIXED FORMS ARE ALSO POSSIBLE BY USING REFERENCE PURCHASE ORG

SALES ORGANISATION

AN ORGANIZATIONAL UNIT IN TERMS OF SALES AND DISTRIBUTION. ONE SALE ORG CAN BE

ASSIGNED TO ONLY ONE COMPANY CODE. IT IS DIVIDED INTO SALES AREA AND SALE OFFICE

WHEN IT IS GEOGRAPHICALLY DIVIDED. IT IS DIVIDED INTO DIVISION WHEN SEGREGATING WRT

TO PRODUCT CHARACTERISTICS. IT IS DIVIDED INTO DISTRIBUTION CHANNEL WHEN DIVISION IS

MADE IN TERMS OF DISTRIBUTION NATURE.

PLANT

AN ORGANIZATIONAL UNIT IN WHICH GOODS AND SERVICES ARE PRODUCED AND ARE

ACCORDING TO PRODUCTION, MAINTENANCE, PROCUREMENT AND MATERIAL PLANNING.

GENERALLY MATERIALS IS VALUATED AT PLANT LEVEL.

SAMPLE ORG STRUCTUREOperating concern

Controlling area

Company code

Personal Area

Personal Sub area

Purchase organisation

Purchasing Group

Sales Organisation

Sales office

Plant

Shipping Point

Storage location

Warehouse

Credit control Area

FICO OVERVIEW

Client

Operating Concern

Controlling area

Credit control area

Company code

LOGISTICS OVERVIEWClient

Controlling Area

Company code

Purchase org

Sales Org

Purchasing group

Plant

Sales division

Thank youFor details contact @pt.partha.tripathi@gmail.com