ENTERPRISE STRUCTURE: EC01

Organisational structure in SAP :

This structure is essential for effectively managing and controlling various business
processes. The key components of the SAP organizational structure include:

1. **Client:**
- The highest level in the SAP system, representing an independent business entity
or company.

2. **Company Code:**
- A legal entity that represents a separate accounting unit within the client. Each
company code has its own set of financial records.

3. **Controlling Area:**
- An organizational unit within a client used for cost accounting purposes. It is
assigned to one or more company codes.

4. **Plant:**
- Represents a manufacturing facility or a location where goods are produced or
services are provided.

5. **Sales Organization:**
- Responsible for the sale of products or services. It is assigned to a company code.

6. **Distribution Channel:**
- Represents the different ways of distributing products to customers. It is assigned
to a sales organization.

7. **Division:**
- Represents product lines or product groups. It is assigned to a sales organization
and distribution channel.

8. **Purchasing Organization:**
- Responsible for procuring goods and services. It is assigned to a company code.

9. **Storage Location:**
- Represents a location where materials are stored within a plant.

10. **Warehouse:**
- Represents a physical or logical subdivision of a storage location.

The organization structure in SAP is crucial for various modules such as Finance (FI),
Controlling (CO), Materials Management (MM), Sales and Distribution (SD), and
others. It helps in organizing and managing business processes, facilitates reporting,
and ensures that transactions are recorded in the correct organizational context.

Configuring the SAP organizational structure is typically part of the initial SAP
implementation process and is tailored to the specific needs of each company.