Learn Enterprise Structure in SAP Financial Accounting from SAP XPERT at www.sapxpert.com

1. SAP Financials Training Program
Author:
Jignashu V. Bodawala
Version:
1.0 / 2011

2. About John Woolworths Supermarket Chain:
 John Woolworths , a global retailer, operates its stores in USA & Canada.
 John Woolworths has 4 companies:
 John Woolworths, Inc. is the parent company responsible for Corporate functions of John Woolworths.
 John Woolworths.com USA Inc. is the American Online Retailer of John Woolworths, Inc.
 John Woolworths USA Stores Inc. is the American subsidiary of John Woolworths, Inc. which operates stores
under the name of John Woolworths
 John Woolworths Canada Limited is the Canadian Subsidiary of John Woolworths, Inc.
 John Woolworths, Inc., John Woolworths.com USA Inc. and John Woolworths USA Stores Inc. are located at 100
Woolworths Dr, Schaumburg, IL 60173.
 John Woolworths Canada Limited is located at 100 Woolworths, Toronto, ON M5V 3G1.
About John Woolworths Business:
 John Woolworths has four business areas which sells its own brands of same name and other retail brands:
 Woolworths Fresh – Packaged Food, Fruit, Vegetable, Dairy Product, Ingredient & Beverage, etc.
 Woolworths Value – Cosmetics, Beauty Product, OTC Drug, etc.
 Woolworths Home – Kitchen, Bed, Bath, Auto, Electronics, Cleaning Supply, Home Goods, etc.
 Woolworths Essentials – Apparel
About John Woolworths Operations:
 Company divides its operations in three segments – “Supermarket - Stores US”, “Supermarket - Stores
International” and “Supermarket – Online US”.

3. Definition
 Company Code is an obligatory smallest
organizational unit for which a self-
contained set of accounts can be created
,external accounting can be done such as
transactional and ledger postings and the
financial statements such as balance sheet
and the profit and loss statement can be
drawn for external reporting.
 Company code is represented by a four-
character alpha-numeric key
Use
 It’s central organizational unit for financial
accounting in SAP for which business
transactions relevant for accounting are
created, saved and evaluated at Company
Code Level.
Do not use “0001” key as Company Code
because it’s used by SAP System to generate
template Company Code with country
settings.
Consulting CornerCompany Code
 Define naming convention for company
codes with long term vision or follow
naming convention established.
 Obtain list of legal entities in project scope
and their address data.
 Create company code(s) in SAP for each
legal entity.
Expert Opinion

4. Method 1: Create Company Code w/o Global Parameters from Reference Company Code
IMG  Enterprise Structure  Definition  Financial Accounting  Edit, Copy, Delete, Check Company Code
Choose “Edit Company Code Data” by selecting it and then clicking on choose(Figure 1.1). You will see
Change View “Company Code”: Overview Screen. Click on “New Entries” to create without reference(Figure 1.2).
Alternately, you can select a Company Code (Figure 1.3) and Click on “Copy As” icon (Figure 1.4)
Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4

5. Upon on clicking “New Entries” as shown in Figure 1.2, screen for adding new entries is displayed (Figure 2.1).
Enter values for Company Code, Company Name, City, Country, Currency and Language and Click “Save”.
Screen for adding address data is shown (Figure 2.2). Enter Name, Search Term, Address, Communication Data.
Save Data.
Figure 2.1
Figure 2.2
1. T-Code OX02 can be used to directly go to
Change View “Company Code”: Overview Screen
(Figure 1.2).
2. Data in Figure 2.1 is stored in T001 table.
3. Data in Figure 2.2 is stored in ADRC table.
Extra Shots

6. Method 2: Create Company Code with Global Parameters from Reference Company Code
IMG  Enterprise Structure  Definition  Financial Accounting  Edit, Copy, Delete, Check Company Code
Choose “Copy, delete, check company code” by selecting it and then clicking on choose(Figure 3.1). You will see
Organizational object Company Code Screen. Click on “Copy Organizational Object” icon (Figure 3.2). In the copy
screen enter from company code and target company code to copy (Figure 3.3)
Figure 3.1
Figure 3.2
Figure 3.3
1. T-Code EC01 can be used to directly go to
Organizational object company code screen
(Figure 3.2).
Extra Shots

7. Company Code Company Name City Country Currency Language
JW01 John Woolworths, Inc. Schaumburg US USD EN
JW02 John Woolworths.com USA Inc. Schaumburg US USD EN
JW03 John Woolworths USA Stores Inc. Schaumburg US USD EN
JW04 John Woolworths Canada Limited Toronto CA CAD EN
USA
Currency: USD
Co Code
JW01
Co Code
JW02
Co Code
JW03
Canada
Currency: CAD
Co Code
JW04
Configuration Parameters
John Woolworths Company Code Structure

8. Definition
 Company is an optional organizational unit
of external accounting that corresponds to
a group of company and for which financial
statements can be generated.
 Company can have one or more company
codes.
Use
 Company forms a basis for financial
consolidation. All company codes must use
same in a company must use same Chart
of Account & Fiscal Year, only currencies
can be different.
 Company generally represents a
commercial law of country.
1. If only one company is required, use
preset company ID G00000 to reduce
configuration.
2. If several clients are used, the non-
operational group-internal business
partner companies must be maintained in
each client to allow account assignment of
group internal trading partner.
Consulting CornerCompany
 Decide the need for a company and define
company.
 Assign company codes to company.
 Consider group reporting and Financial
Consolidation (FI-LC or EC-CS)
requirements.
Expert Opinion

9. IMG  Enterprise Structure  Definition  Financial Accounting  Define Company
You will see Change View “Internal trading partners”: Overview Screen.
Click on “New Entries” to create company (Figure 4.1). Details screen is displayed. (Figure 4.2). Enter Company ID,
Company Name, Street, Postal Code, City, Country, Language, Currency, etc. and Save the record.
Figure 4.1
1. T-Code OX15 can be used to directly go to
Change View “Internal Trading Partner”:
Overview Screen (Figure 4.1).
2. Data in Figure 4.2 is stored in T880 table.
Extra Shots
Figure 4.2

10. IMG  Enterprise Structure  Assignment  Financial Accounting  Assign company code to company
You will see Change View “Assign Company Code  Company”: Overview Screen (Figure 5.1).
Enter Company ID for each Company code (Figure 5.1).
Alternately, you can use dropdown to look for company ID (Figure 5.1) and the list will be displayed (Figure 5.2).
1. T-Code OX16 can be used for direct access o
screen in Figure 5.1 .
2. Data in Figure 5.1 is stored in T001 table.
Extra Shots
Figure 5.1
Figure 5.2

11. Company Company
Name
Company
Name 2
Street City Country Currency Language
JW0001 John
Woolworths
Group
John
Woolworths,
Inc.
100 Woolworths
Dr
Schaumburg US USD EN
Company ID
JW0001 (USD)
Co Code
JW01 (USD)
Co Code
JW02 (USD)
Co Code
JW03 (USD)
Co Code
JW04 (CAD)
Configuration Parameters
John Woolworths Company

12. Definition
 Business area is an optional organizational
unit of external accounting that
corresponds to a specific business segment
or area of responsibility in a company.
 Business areas can be used across
company codes.
 Business areas are represented by a four-
character alpha-numeric key.
Use
 It can be used in segment reporting over
and above company codes such as to
enable financial statements for product
lines, branches, brands, etc. for internal
reporting purpose. It does not have any
external impact.
 All financial transactions can be assigned
to business area.
Consider Cost Centers & FI Substitution Rules
for populating business areas.
Consulting CornerBusiness Area
 Define naming convention for business
areas with long term vision or follow
naming convention established.
 Consider all legal entities and other
structures such as segments, brands,
regions, profit centers, etc.
 Create business areas in SAP
Expert Opinion

13. IMG  Enterprise Structure  Definition  Financial Accounting  Define Business Area
You will see Change View “Business Areas”: Overview Screen.
Click on “New Entries” to add business areas (Figure 6.1). Details screen is displayed. (Figure 6.2).
Enter business area(s) and descriptions. Save the records.
Figure 6.1
1. T-Code OX03 can be used to directly go to
screen in Figure 6.1
2. Data in Figure 6.2 is stored in TGSB table.
Extra Shots
Figure 6.2
Company JW0001
Co Code
JW01
Co Code
JW02
Co Code
JW03
Co Code
JW04
Business Area JW01
Business Area JW02
Business Area JW04
Business Area JW03
John Woolworths Company with B Area

14. Definition
 Division of a company for which financial
statements can be created for external
reporting as per accounting principles set by
IFRS and US GAAP.
 Business areas can be used across company
codes.
 Business areas are represented by a four-
character alpha-numeric key.
Use
 US GAAP and IFRS requires a virtually
complete balance sheet at the segment level
for segment reporting (essentially everything
apart from stockholders' equity).
 It’s a subarea of a company which generates
expenses and revenues, with an operating
result that is regularly used by management
for profit assessment and resource allocation
purposes.
1. Consider Profit Center Master Data and
Business Add-ins for populating segments.
2. Segment Dimensions can be used to
represent segment levels.
Consulting CornerSegment
 Define naming convention for business
segments and identify the need for
segments. Small companies may not have
segments but very large companies can
have segment hierarchies (levels).
 Identify operating segments and segment
reporting needs.
 Create segments in SAP
Expert Opinion

15. IMG  Enterprise Structure  Definition  Financial Accounting  Define Segment
You will see Change View “Segments for Segment Reporting”: Overview Screen.
Click on “New Entries” to add business areas (Figure 7.1). Details screen is displayed. (Figure 7.2).
Enter Segments and descriptions. Save the records.
1. Data in Figure 7.2 is stored in FAGL_SEGM &
FAGL_SEGMT table.
Extra Shots
Figure 7.2
Company JW0001
Business Area JW01
Business Area JW02
Business Area JW04
Business Area JW03
John Woolworths Company Segments
Segment
WLSUPSTUS
Co Code
JW01 (USD)
Co Code
JW03 (USD)
Segment
WLSUPONUS
Co Code
JW02 (USD)
Segment
WLSUPSTINT
Co Code
JW04 (CAD)
Figure 7.1

16. Provide definition, use, consulting activities &
Configuration, tips & tricks for -
Company Code
Company
Business Area
Segments