Describing the Organizational Units and Structures


After completing this lesson, you will be able to:

  • Summarize organizational units and structures.
  • Demonstrate the enterprise structure in SAP S/4HANA.

Organizational Units and Structures

Enterprise Structure

One of the first steps in implementing SAP applications is to define the specific organizational structures of your company in the SAP system. The enterprise structure forms the framework that is used to set up the master data and business processes. In general, the enterprise structure is used to map the real company according to legal, organizational, and process aspects in SAP S/4HANA.

The following video shows the central organizational units in Finance, their connections to each other and to selected organizational units in Logistics:

How to display the Enterprise Structure

Discovering the Enterprise Structure in the SAP S/4HANA Training Model Company

The following demonstration shows you one way to display the enterprise structure in the system, using our SAP S/4HANA Education Model Company as an example:

Further Reading

  • Client: represents a corporate group or subgroup in SAP. It is the highest level in the SAP enterprise structure. General master data applicable to the entire company is maintained at this level. ​
  • Operating Concern:​ represents an organizational unit for which the sales market has a uniform structure. It is the valuation level for profitability analysis. ​
  • Controlling Area:​ is the basic organizational unit in Management Accounting. A controlling area is a self-contained entity used for cost and revenue accounting.
  • Company Code:​ is the central organizational unit of the external accounting of which the general ledger and its subledgers is managed.​
  • Plant: is the central organizational unit in Logistics. It subdivides an enterprise according to production, procurement, maintenance, and materials planning aspects.​
  • Sales Organization:​ subdivides an enterprise according to the requirements of Sales. It is responsible for selling materials and services. A sales organization is always uniquely assigned to a company code.​
  • Enterprise Structure: is the basic organizational unit in Human Experience Management.

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