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COMPANY STRUCTURE IN SAP FICO

The corporate structure in SAP is an organizational chart that shows how the entire team is mapped on SAP. It consists of several organizational units of different modules, which were created and consolidated for specific business reasons. Organizational units include law firms, sales offices, financial centers, etc.

Defining business structure design in SAP is a fundamental process of any implementation project. The design is primarily determined by the business scenarios carried out in the industry. As soon as the business structure in SAP has been determined by the person responsible for the process, this has many effects on the execution of a transaction and the generation of reports in SAP.

Changing the SAP business structure requires a lot of effort. Therefore, we have to ensure that the SAP business structure designed in the implementation project can take into account all business situations and business requirements for current and future situations. In simple words, the corporate structure in SAP represents the organizational hierarchy of a company.

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COMPANY STRUCTURE IN SAP FICO MODULES

OPERATIONAL CONCERNS

The operational concern is the basic organizational unit of the Profitability Assessment Module or COPA. COPA acts as a management tool for examining specific markets and business areas. The management of business matters is customer-independent. Once created with a client, this automatically affects all clients. COPA has the highest rank in the business structure of SAP.

CONTROLLED AREA

The control of the area of the SAP business structure is assigned to the central organizational unit within the CO module and the operating company. In this environment, internal report management takes place via cost and income management.

This organizational unit in the SAP business structure represents a closed system that is used for accounting purposes. A control area can contain one or more company codes, which can be operated in different currencies as required. Company codes within a control area should use the same company chart of accounts and the same variants of the fiscal year.

Under an operational concern, you can assign more than one control area based on your business requirements while determining the business structure.

COMPANY

The company has the highest organizational structure in the FI module. A company is an organizational unit that can be used to summarize the financial statements of certain company codes. The company can consist of one or more company codes.

All company codes within a company must use the same transaction chart of accounts and the same losses during the fiscal year. The currency of the company code, on the other hand, can be very different. A company code has a local currency in which its transaction numbers are recorded.

The company is used for legal integration for all company codes assigned to it. In the corporate structure, companies are assigned to company code and company codes to controlling, so that everything is linked.

COMPANY CODE

Corporate accounting is the smallest organizational unit in the financial accounting module, in which a complete set of self-accounts can be called up for external reporting purposes. This is the most important part of the corporate structure. This is assigned to most of the other modules for integration.

The external reporting process includes the recording of all relevant transactions and the development of all supporting documents required for the annual financial statements (balance sheets, profit and loss accounts, etc.).

CHART OF ACCOUNTS

The chart of accounts is a variant created in FI at the customer level that contains the structure and basic information on general ledger accounts. After it has been created, we assign a chart of accounts to company codes in the SAP corporate structure.

You can use the business structure of SAP to determine the number of charts of accounts that were created with company codes. Information to be provided in the chart of accounts: maintenance language, length of the GL account number, manual or automatic creation of expenditure items, group chart of accounts, etc. Three types of charts of accounts are managed:

ü Company chart of accounts

ü Country-specific chart of accounts

ü Group accounts

COST CENTER

A cost center is an organizational unit in a control area that represents a unique location for the location where costs are incurred. A kind of hierarchy must be created for cost center accounting, in which cost centers should be assigned and also grouped for reporting purposes.

Cost centers are company-specific and are assigned to company codes in a business structure.