Distinguishing the Different Forms of an Organization that Define the Enterprise Structure in Order to Begin Implementation of SAP Applications

In order to record business transactions originating from different processes like order-to-cash or purchase-to-pay, SAP S/4HANA needs an enterprise structure. SAP S/4HANA distinguishes between different forms of organization which have specific meanings within their respective applications. You can use them to define your enterprise structure from an application-specific viewpoint. Each component needs organizational units. For example, you can use Company Code for financial accounting, Controlling Area for management accounting and Plant for logistic processes.

One of the first steps in implementing SAP applications is to define the specific organizational structures of your company in SAP S/4HANA. Organizational units are provided for accounting, logistics, and human capital management functions. The first step is to analyze the structures and procedures in your company, and then assign them to the SAP structures.