ENTERPRISE STRUCTURE

TABLE OF CONTENT: ---------------------------------

1. DEFINE COMPANY (OX15)

2. DEFINE COMPANY CODE (OX02)

3. ASSIGN COMPANY CODE TO COMPANY (OX16)

4. CREDIT CONTROL AREA (OB45)

5. ASSIGN CREDIT CONTROL AREA TO COMPANY

CODE (OB38)

6. DEFINE BUSINESS AREA (OX03)

7. DEFINE CONTROLLING AREA

SE09/SE10 Check Path
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 ENTERPRISE STRUCTURE
1.DEFINE COMPANY:
 Company is the Organizational Unit for which Individual
Financial Statements can be drawn according to the relevant
commercial law.
 A Company can comprise of one or more Company Codes.
 A Company has local currencies in which its transactions are
recorded.
 All Company Codes within a Company must use the same
Transaction (Chart of Accounts) and the same Fiscal Year.
 Creation of Company in SAP is Optional.

COMPANY IN SAP IMPORTANT POINTS:

1. We can generate financial statement as per legal requirement
of Company, where the Company is located.
2. We can assign one or more Company Code to Company.
3. It is an optional Organizational unit in SAP.
4. If a Company consists of one or more Company Code, then all
the Company Codes should use same Chart of Accounts.

Path to Define Company in SAP:

TCODE= OX15

ECC: SPRO>SAP REFERENCE IMG>IMPLEMENTATION

GUIDE>ENTERPRISE STRUCTURE>DEFINITION>FINANCIAL
ACCOUNTING>DEFINE COMPANY

S4HANA: SPRO>SAP REFERENCE IMG>IMPLEMENTATION

GUIDE>ENTERPRISE STRUCTURE>DEFINITION>FINANCIAL
ACCOUNTING>DEFINE COMPANY
 ENTERPRISE STRUCTURE
IMPORTANT POINT: Follow the Steps as per........

2. DEFINE COMPANY CODE: OX02

 Company Code in SAP is the smallest organizational unit of
Financial Accounting for which you draw individual financial
statement like Balance Sheet, Profit & Loss Account for purpose
of external reporting.
 The Creation of Company Code in SAP is compulsory.
 At least one Company Code must be defined in an SAP system
to implement Financial accounting module in SAP.
 Company Code must be implemented is SAP system as per Tax
law, commercial law.
 Company Code is used for External accounting systems to
general statements.

Path to Define Company Code in SAP:

ECC: SPRO>SAPREFERENCE IMG>IMPLEMENTATION
GUIDE>ENTERPRISE STRUCTURE>DEFINITION>FINANCIAL
ACCOUNTING> Copy, Delete, Check Company Code, Edit
Company Code Data

S4HANA: SPRO>SAPREFERENCE IMG>IMPLEMENTATION

GUIDE>ENTERPRISE STRUCTURE>DEFINITION>FINANCIAL
ACCOUNTING> Copy, Delete, Check Company Code, Edit
Company Code Data
 ENTERPRISE STRUCTURE
Click on Edit Company Code Data > New Entries
Important Point: Company Code should be 4 digits only
FILL REQUIRED DETAILS AS PER OUR COMPANY CODE
REQUIREMENT.

3. Assign Company Code to Company: OX16

After Configuration of Company And Company, all the

company codes must be assigned to a Company. So the
integration between Company code Companies is
establish through this step.

Path:
ECC: SPRO>SAP REFERENCE IMG>IMPLEMENTATION
GUIDE>ENTERPRISE STRUCTURE> ASSIGNMENT> FINANCIAL
ACCOUNTING> ASSIGN COMPANY CODE TO COMPANY.
S4HANA: SPRO>SAP REFERENCE IMG>IMPLEMENTATION
GUIDE>ENTERPRISE STRUCTURE> ASSIGNMENT> FINANCIAL
ACCOUNTING> ASSIGN COMPANY CODE TO COMPANY

4. CREDIT CONTROL AREA: OB45

 Credit Control Area in FI is used to the check the credit

limit for customer and it can use one more Company
Codes.
 It is used for Credit management in Application
components such as Accounts receivable and Sales and
distribution
 Company Code can use only one Credit Control Area.
 ENTERPRISE STRUCTURE

Path to Define Credit Control Ares in SAP:

ECC& S4HA: SPRO> SAP REFERENCE IMG> IMPLEMENTATION
GUIDE> ENTERPRISE STRUCTURE> DEFINTITION> FINANCIAL
ACCOUNTING> DEFINE CREDIT CONTROL AREA

5. ASSIGN COMPANY CODE TO CREDIT

CONTROL AREA: OB38

Steps to Assign Company Code to Credit Control Area--------

SPRO> SAP Reference IMG> Implementation Guide> Enterprise
Structure> Assignment> Financial Accounting> Assign Company
Code to Credit Control Area
 ENTERPRISE STRUCTURE

6. DEFINE BUSINESS AREA (OX03)

Business Area is a separate area of operations or responsibilities

of organizational units of financial accounting that is used for
Internal and external reporting. Different divisions of each
business within a legal entity are created as Business areas for
reporting of each operational area. So financial statement can
be created for each business area and these financial
statements can be used for internal reporting purpose.

Important Point:
 This is an Optional Organizational unit, so it is not
mandatory to define the business area in SAP system.
 Business Areas are not assigned to any company code.
 Using Business area organizational units, the statement
of Balance Sheet and Profit & Loss Account.
 You can define the Business area with 4 characters and
the same company code be used for the Business area.

Steps for the Creation of New Business Area in SAP: OX03------------

ECC &S4HANA: SPRO> SAP Reference IMG> Implementation Guide>

Enterprise Structure> Definition> Financial Accounting> Define
Business Area.
 ENTERPRISE STRUCTURE
The Business Area ARBR, ARGJ, ARMH

7. DEFINE CONTROLLING AREA (OX06):

ENTERPRISE STRUCTURE