This document gives an overview of SAP organization structure from Business point of view. This will help in understanding organization of SAP vis-a-vis business org structure

1. SAP ORGANISATION STRUCTURE
PARTHA TRIPATHI

2. 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

3. BUSINESS VIEW

4. MAIN CATEGORIES
• FINANCIAL
• OPERATING CONCERN
• CONTROLLING AREA
• CREDIT CONTROL AREA
• COMPANY CODE
• HUMAN RESOURCE
• PERSONNEL AREA
• LOGISTICS
• PURCHASING ORGANISATION
• SALES ORGANISATION
• PLANT

5. CLIENT
IN COMMERCIAL ORGANISATION AND TECHNICAL TERMS A
SELF CONTAINED UNITS CONTAINING ITS OWN SET OF
PROGRAMS, TABLES AND MASTER AND TRANSACTION
RECORDS

6. 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

7. 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

8. 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.

9. 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.

10. 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.

11. 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

12. 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.

13. 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.

14. SAMPLE ORG STRUCTURE
Operating 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

15. FICO OVERVIEW
Client
Operating Concern
Controlling area
Credit control area
Company code

16. LOGISTICS OVERVIEW
Client
Controlling Area
Company code
Purchase org
Sales Org
Purchasing group
Plant
Sales division

17. Thank you
For details contact @pt.partha.tripathi@gmail.com