Enterprise Structure
Role of the Enterprise Structure
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.
- Controlling Area
- An organizational unit in Management Accounting used to subdivide the business organization from a cost accounting standpoint. A controlling area may contain one or many company codes.
- Company Code
- The company code is a legal, independent accounting unit representing the central organizational unit of financial accounting. The company code represents the tax law (national) view of the company, the fiscal calendar, the local currency, and the tax reporting requirements.
- Plant
- An organizational unit within logistics that subdivides an enterprise from the viewpoints of production, procurement, maintenance, and materials planning.
- Purchasing Organization
- An organizational unit within logistics that subdivides an enterprise from the viewpoints of production, procurement, maintenance, and materials planning.
- Sales Organization
- An organizational unit within logistics, that structures the company according to the sales requirements and is responsible for the sale and distribution of goods and services.