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Representing your Organisation Structure in SAP

At the start of any project one of the first and most important things to be done is that your current best guess of your businesses organisation structure must be configured in the SAP System.  The sooner you do this and the more accurately you do this, the quicker and better the project team can get on with prototyping or configuring the rest of the system. Some functionality is quite dependent on which SAP organisation elements you chose to represent various aspects of your organisation. So to avoid wasting too much time, it is very important to get appropriate skills working on this design ASAP in order to ensure that the initial configuration is reasonably appropriate.

Each module of SAP tends to have its own organisation elements, although some are shared across modules (plant, division etc). If an element is very specific to that module with localised usage, then I have not explained it here.  Adequate explanation should be in the R/3 Library.

The organisation structure decisions and issues are presented in the following chapters:

Key SAP Organisation Elements / Structures:

Following is a summary of the key elements for organisation structure and functionality decisions. Follow the link on each for more detail and guidelines on how to configure.  The 'integration' section on this site will provide some further tips.

Element Owning Module Brief Description
Company Code FI mandatory, used for lowest legal entity
Business Area FI optional, used for sub or cross company Balance Sheet reporting
Profit Centres CO-PCA optional, used for profit and return on investment reporting.   See also module decision on CO-PCA vs CO-PA.
Cost Centres CO mandatory for responsibility level overhead expense reporting
Sales Areas SD mandatory, actually a combination of the SD elements : Sales Organisation, Distribution Channel and Division
Purchasing Organisation MM mandatory - could be just one.  See R/3 library.

Relatively "Uninteresting" SAP Organisation Elements:

Several SAP organisation elements are required purely as the top node of the module providing an 'environment' under which a single set of data exists. Data can usually not be shared across these 'top node' elements. These elements are usually invisible  to the users and can often be excluded from training or explanatory diagrams.   For that reason I do not see much point in discussing them here - adequate information on their definition and relationship to other elements is in the R/3 library.  These elements are:

Controlling Area CO - Controlling
Operating Concern CO-PA - Profitability Analysis
Financial Management Area TR - Treasury
Credit Control Area FI-AR & SD (Credit Management)

SAP Master data which represents the Organisation Structure:

In controlling, the Cost Centre and Profit Centre Hierarchies are also used to represent the organisation or enterprise structure.  SAP considers these as 'master data' though not as organisation elements.  Therefore maintenance of these is not found in the Enterprise Structure area of the IMG.  However they are worth discussing here. Organisation Structure issues relating to these are presented in two sections :

 

 

 


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