Business Organizational Model

Business Organizational Model
Organizational Structure Workshop

Guide - Business Suite
Speaker’s Name, SAP
Month 00, 2018
INTERNAL
Partner logo
Organizational Structure
Workshop Guide
 Introduction to Structure Modelling
 Structuring Accounting
 Structuring Logistic
Preface - Organizational Structure Workshop Guide
The strategic baseline of organizational structure model of the SAP software system is a prerequisite
for the detailed modelling of business processes and master data.
The organizational structure of the company must be analyzed initial based on defined data objects
from SAP software and applications.
To assist entry in this area this guideline is focused on the main organizational units in FI/CO and
Logistic because of the high interdependencies between.
As an output deliverable future organizational model – high level – should be defined taking into
account future organizational structure for the SAP software processes and company business
process requirements.
Based on this detailed definition of organizational structure needs to be documented during Blueprint
Phase of implementation project.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 3

© 2018 SAP SE or an SAP affiliate company. All rights reserved. Internal 3
Introduction to Structure Modelling
Before start with Process Analysis in detail it is a prerequisite to portray the specific organizational structure of your business in
the SAP System.
To help you portray your company structure, different Accounting, Logistics and Human Resources organization units are
provided.
First analyze the structures and procedures in your company, and then match them to the SAP structures. There are various
organization elements defined as examples in the standard version. Normally these would not cover all your needs. Extend the
elements as required.
During the clarification stage, work with the structures delivered by SAP. In order to obtain a high degree of identification and
acceptance from project members and user departments from the start, you may have to change some of SAP's terminology.
You should limit the number of persons authorized to maintain organization elements. Define the authorization profiles
accordingly. As soon as your organization units are ready, access should be locked so that no other changes can be made.
At the end it is essential to document future organizational structure in SAP based on a model
Note
The definition of organization units is a fundamental step in your project. It is a critical factor in how the project will be
structured.
You should not use more organization units than necessary. Only use new organization units if this is required by the existing
data structures.
Once you have decided on an organizational structure it is not easy to change it.

SAP Organizational Model – Hierarchy Strategic Level
Finance / Controlling
Client
n:
n:
1
Profit / Cost 1
Center Credit
n:
1
Controlling Control area
area n:
n: 1
1 Company
code
n: n: n:
1 1 1 Sales area
Purchasing Shipping Sales
organization point
n: organization n:
1 m
Distribution
Plant
n: channel n:
1
Storage m
Logistics Division
location
Organizational Structure Model - Example
3000
AIM
AIM Company
Company
AIM
International, Inc US Company
02 90
Business
Area
02
Motorcycles
Motorcycles
90
Accessories
Accessories
Code
4000
4000
AIM
AIM
3000
3000
Purchasing
Organization
US
US#1#1 International,
International, Inc
Inc
Canada
Canada
Division/ 02
02 3000
3000 90
90 4000
4000
Plant Motorcycles
Motorcycles New
NewYork
York Access.
Access.Seattle
Seattle
Sales 3000
3000
Organization US
USSales
Sales
Distribution 03
Channel Retail
Division 02 90
Motorcycles Assess.

Workshop Guide
Introduction to Structure Modelling
Structuring Accounting
Structuring Logistic
Client
n:
n:
1 / Cost
Profit
1
Center
Credit
n:
1
area n:
n: 1
1 Company
code
n: n: n:
1 1 1 Sales area
organization point
n: organization n:
1 m
Distribution
Plant
n: channel n:
1
Storage m
Logistics Division
location
Strategic Organizational Structure FI / CO
For Financial (FI) accounting following organizational units are in focus:

 Client
 Company Code
 Business area
 Chart of accounts
For Controlling (CO) following organizational units are in focus:

 Client
 Controlling area
 Profit / Cost Center

Strategic Organizational Structure FI / CO

 Client
 Company Code
 Business area

 Client

Strategic Organizational Units for Financial Accounting (FI)
11001 12037 14162

Logical Co. Area-
Company
System Code Comp. Code-
(Client) Assignment
12009
Business
Area
14017 14059
Controlling Op.Concern-
Area Co.Area-
Assignment
14002
Operating
Concern

Key Questions to set up Organizational Structure for FI/CO in SAP
1.What are the legal entities that constitute your business?

2.Do you produce legal financial statements for each one of
these legal entities and do they have separate Federal Id
Numbers?
3.Which one of these entities are true operating companies
4.Of these legal entities, which ones are Holding Companies?
5.How do these legal entities relate to each other?
6.…

Organizational Elements - Client
The Client
AIM
AIM Company
Company

Organizational Elements - Client
Client Characteristics
 Highest Hierarchical Level in SAP (e.g. a corporation)
 Can be Used to Differentiate between a Development, Quality Assurance, and Production

System
 All Areas of an Organization that are to be integrated into the SAP Production System should
be included under one Client

Organizational Elements - Client (Cont.)
Client Characteristics
Common Set of Rules
 Common Tables
 Common Master Files
 Common Data Bases
Standardized Data Across the Client

 a vendor number and name is common across the client
 a customer is common across the client
 a general ledger number and description is common across the client
 a material number and description is common across the client

Organizational Elements Client - FI
Client Strategy for AIM Company

 Clients: Identify the proposed productive clients for customer being evaluated.
 Benefits: Identify the benefits of recommended strategy.
 Costs: Identify the costs of recommended strategy.
 Issues: Identify any open issues/questions.

Organizational Elements Company Code - FI
AIM
AIM Company
Company
3000
3000 4000
4000
AIM
AIM Company,
Company, Inc
Inc AIM
AIM Company,
Company, Inc
Inc
US
US Canada
Canada
(Company)
(Company) (Company)
(Company)
Company Code

Characteristic
 Represents a legal/tax entity - Where do you legally represent the financial events of
transacting business?
 An independent accounting unit within a client.
 Foundation for financial structure. Company code is the level at which auditable financial
statements are produced. (Usually a fiduciary and legal requirement of a legal entity).
 Arms Lengths Transactions
 Level of External Reporting or Legal Sets of Books. SAP recommends using a company
code to represent a legal reporting entity

Assignment Considerations
A Company is Assigned to:
 Credit Management Area to allow for either Centralized or Decentralized Credit Management
(Credit Control Area)
 Financial Management Area-Treasury
 Departmental Accounting/Cost Center Area to allow for Centralized or Decentralized
Departmental Reporting (Controlling Area)
 A company is an organizational unit in Accounting which represents a business organization
according to the requirements of commercial law in a particular country.
 You store basic data for each company in company definition. You only specify particular
functions when you customize in Financial Accounting. Company G0000 is preset in all
foreign key tables.
 In the SAP system, consolidation functions in financial accounting are based on companies.
A company can comprise one or more company codes.

Assignment Considerations
When you create a company you should bear in mind the following points
relating to group accounting:
If your organization uses several clients, the companies which only appear as group-internal
business partners, and are not operational in each system, must be maintained in each client. This
is a precondition for the account assignment of a group-internal trading partner.
Companies must be catalogued in a list of company IDs which is consistent across the group. The
parent company usually provides this list of company IDs.
It is also acceptable to designate legally dependent branches 'companies' and join them together as
a legal unit by consolidation.
Recommendation
SAP recommends that you keep the preset company ID G00000 if you only require one company. In
this way you reduce the number of tables which you need to adjust.

Company Code for AIM Company

 Company Codes: Identify the proposed company codes if any for customer being
evaluated.
 Consolidation Company Codes: Identify the proposed consolidation company codes if

applicable.
 Benefits: Identify the benefits of recommended usage of company codes.
 Costs: Identify the costs of recommended usage of company codes.

Organizational Elements Business Area - FI
AIM
AIM Company
Company
3000
3000 4000
4000
AIM
AIM Company,
Company, Inc
Inc AIM
AIM Company,
Company, Inc
Inc
US
US Canada
Canada
(Company)
(Company) (Company)
(Company)
02
02 90
90
Motorcycles
Motorcycles Accessories
Accessories
(business area) (business
(business area) (business area)
area)
Business Area

Organizational Elements Business Areas - FI
Characteristic
A business area is an organizational unit within accounting that represents a
separate area of operations or responsibilities in a business organization.
Subset of Companies
Used for Segment Reporting in Accordance to IFRS 8
Represents a Separate Area of Operations or Responsibility within an
Organization
Could be Shared Across Companies or Specific to a Single Company
Lowest Level within FI that an Internal Balance Sheet and Profit and Loss
Statement can be Developed
Typically does not Have Shareholder Equity
When defining a business area, you enter a four-character alphanumeric key
and the name of the business area.

Organizational Elements Business Area - FI
Business Area for AIM Company

 Business Area: Identify the proposed business area if any for customer being evaluated.
 Benefits: Identify the benefits of recommended usage of business areas.
 Costs: Identify the costs of recommended usage of business areas

business areas are only in balance at the end of the period when the business area
clearing program is executed.

Organizational Elements Chart of Accounts - FI
Characteristic
There are Three Chart of Accounts Concepts in SAP
 Operating Chart of Accounts
 Country Chart of Accounts
 Group Chart of Accounts

Operating Chart of Accounts

 G/L Account Master Records Required in One or Several Company Codes
 Postings are Made to these Accounts
 Maximum of a 10 Digit Code
 A company Must be Linked to One Operating Chart of Accounts
 An Operating Chart of Accounts can be Linked to Many companies

Linking of Chart of Accounts to Company Codes
OPERATING
CHART OF ACCOUNTS
1
1
Motor Sports Motor Sports

International, Inc. US International, Inc. CA
1 Company Codes are linked to Chart of Account

Country Chart of Accounts

 Represents the Account Structure Prescribed under National Regulations
 Optional Usage in SAP
 Could be the same as the Operating Chart of Accounts or the Operating Chart of Accounts at
the Company Level can be linked (mapped) to the Country Chart of Account

Organizational Elements Chart of Accounts- FI
Group Chart of Accounts

Could be used for:
Consolidation Chart of Accounts
Corporate Group Rollup
The Operating Chart of Accounts Master (not Company) is Assigned to a Corporate Chart of Accounts
Optional Usage in SAP

Linking of Chart of Accounts to Company Codes
GROUP
CHART OF ACCOUNTS
OPERATING
1 CHART OF ACCOUNTS 1
COMPANY CODE 1 COMPANY CODE 2
1 Company Codes are linked to Chart of Account
2 The Operating Chart of Accounts is Linked to the Group Chart of Accounts

Operating Chart of Accounts = General Ledger

 Different from a lot of other Financial System Applications in that the G/L account is strictly
comprised of the natural account code.
 The management reporting structures (i.e. cost centers, divisions, regions, and job orders) is
not embedded within the chart of accounts.
 In SAP there is a relative relationship between the chart of accounts profit and loss natural
account code and the cost centers.

Organizational Structure FI /CO

 Client
 Company Code
 Business area

 Client

Organizational Structure Controlling Area – CO
Integration Model
Operating
Operating Controlling
Controlling
Chart
Chart of
of Accounts
Accounts Area
Area
3000
3000 4000
4000
AIM
AIM AIM
AIM
Company
International,
International, Inc
Inc International,
International, Inc
Inc
Code
US
US Canada
Canada
Business 02
02 90
90
Area Motorcycles
Accessories

Organizational Elements Controlling Area - CO
Characteristic
 The controlling area is an organizational unit in Accounting used to subdivide the business
organization from a cost accounting standpoint.
 An organizational unit within a corporation in which comprehensive independent

management accounting can be performed.
 Allows you to group companies from a Cost Accounting View.
 It links the financial accounting module (FI) to the management accounting module (CO) in
SAP.
 In cross-company-code cost accounting, all data relevant to cost accounting appears in a

common controlling area and is available for allocations and evaluations. It represents the
highest controlling level for reporting.

Linking of FI and CO
The Operating Chart of Accounts Links Financial Accounting (General Ledger) to
Management Accounting in the following way:
 A Company Code is Linked to the Operating Chart of Accounts

 The Controlling Area is Linked to the Operating Chart of Accounts
 A Company Code then can be Linked to any Controlling Area as long as they
are both Linked to the Same Operating Chart of Accounts
Several Companies can be Linked to a Single Controlling Area regardless of the Companies
Functional Currency.
THE ONLY REQUIREMENT IS THAT ALL COMPANIES WITHIN THE CONTROLLING AREA
MUST USE THE SAME OPERATING CHART OF ACCOUNTS.

Reporting
Highest Reporting Level under Cost Center Accounting across which Information can Shared
and Viewed within the Controlling Module
 Departmental Cost Information within a Single Controlling Area can be Viewed

using the Standard Cost Center Reports in CO.
 Departmental Cost Information Across Controlling Areas can be viewed by
Building User Definable Reports in the Special Ledger
 Interdepartmental Cost Allocations can only be performed in CO across
Companies in the Same Controlling Area.

Recommended Controlling Area & Chart of Accounts

Strategy for Name of Customer
 COA/Controlling Area: Identify the proposed COA/controlling area strategy (i.e.
single vs. multiple)
 Benefits: Identify the benefits of recommended strategy.
 Costs: Identify the costs of recommended strategy

Organizational Elements – Profit Center / CO –
Integration Model
Operating
Controlling
Chart
Chart of
of Accounts
Accounts Area
Area
3000
3000 4000
4000
Company
Code
AIM
AIM
International,
International, Inc
Inc
AIM
AIM
International,
International, Inc
Inc
Profit
ProfitCenter
CenterHierarchy
Hierarchy
Profit Center
´s
US
US Canada
Canada
Paint
Paint Pumps
Pumps
Business 02
02 90
90
Area Motorcycles
Accessories

Organizational Elements – Profit Center / CO
Profit Center Accounting
 The profitability accounting represents the environment within which a market (or
customer, product) segment of the business can be monitored and profitability
analysed. It can be don on cross-company level.
 Used to Calculate the Profit of an Area of Responsibility within the Organization
(e.g. Division)
 The Areas of Responsibility (Profit Centers) could be Based on Regions,
Functions, or Products.
 Supports Calculating Operating Profit using the Cost of Goods Sold P/L Format
and/or the Period Accounting Method
 A Profit Center can also be Viewed as an Investment Center since it is Possible
to Transfer at Period End the Balance Sheet Positions for Assets, WIP, AR, AP,
and Inventory

Characteristic
A Profit Center is not an Independent Account Assignment Object at the Moment of Entering a
Transaction in SD or MM; It is Derived from Existing Objects
As a Default, Revenue and Costs for Profit Centers are Derived as follows:
 Sales Order Line Item based on the Product being Sold
 Direct Costs Based on the Assignment of Production Orders and Direct Costs.
The System Proposes the Profit Center Based on the Profit Center of the Material
Being Produced.
 Overhead Costs Based on the Assignment of the Cost Center or other Cost Object
Substitution Rules can be Used to Change the Default Derivation
Supports both Actual and Planned Data

Profit Centers for AIM Company
 Profit Centers: Identify the proposed profit centers if any for customer being
evaluated.
 Benefits: Identify the benefits of recommended usage of profit center.
 Costs: Identify the costs of recommended usage of profit centers.

Organizational Elements Business Areas (FI) vs. Profit Centers (CO) - Selected Aspects
Business area Profit center

Organizational unit in FI Organizational unit in CO
Analogous to external view Management-oriented view
Reporting reflects requirements of external Emphasis on key profitability figures
reporting Calculation of ROI more precise than in
ROI can be calculated, but not as precisely as business area
for profit center (no secondary costs) Can create alternative hierarchies
Cannot create hierarchies Profit center assigned by plant in material
Business area determination in MM and SD master
(different rules) Transfer pricing for goods movements
No transfer pricing between business areas in between profit centers
standard SAP System Parallel posting to separate accounts
Posted in FI-GL

Organizational Elements – Cost Center / CO –
Integration Model
Operating
Controlling
Chart
Chart of
of Accounts
Accounts Area
Area
3000
3000 4000
4000
AIM AIM Profit
ProfitCenter
CenterHierarchy
Hierarchy
Company AIM AIM
Code International,
International, Inc
Inc International,
International, Inc
Inc
US
US Canada
Canada
Cost
CostCenter
CenterHierarchy
Hierarchy
Paints
Paints Pumps
Pumps
Business 02
02 90
90 Marketing
Area Motorcycles
Accessories
Information
Information
Systems
Systems
Sales
Sales--Paints
Paints
Cost Centers
Organizational Elements – Cost Center / CO
Characteristic
 Departmental Breakdown of your Legal Entity Structure
 Lowest Level of Organization where you want to Collect and Analyze
Costs/Departmental Performance
 Departmental Budgets and Expense Analysis of P & L Accounts
 Interdepartmental Cost Allocations
 Each Cost Center is Assigned to a Company Code, Business Area and Profit
Centers
 Cost Centers are Structured into Organizational and/or Functional Hierarchical
Groups

Cost Centers - Hierarchies

 Can Create Physical Hierarchy for Operational Management (i.e... Philadelphia or Atlantic City)
 Can Create Multiple Alternate Hierarchies for Functional Management (i.e. Accounting
department in Stanford and the Accounting department in East Alton can be grouped together to
form the corporate Accounting department or the operations accounting department)
 Can Get Selected Balance Sheet Items at the Cost Center Level if the Right Modules have been
Installed, specifically Fixed Assets (AM) . In the Fixed asset master record you can cross
reference the asset to the cost center and see historical cost, accumulated depreciation and
depreciation expense.

Linking the G/L P/L Accounts to Cost Centers

 In SAP, a Cost Account is either Linked or not Linked to a Cost Center
 The Linking is Performed by Creating the G/L Cost Account as a Cost Element under the CO
Module
 All Cost G/L Account Numbers can be Linked to One or Many Cost Centers (Department
Codes)

Workshop Guide
Introduction to Structure Modelling
Structuring Accounting
Structuring Logistic
Client
n:
n:
1 / Cost
Profit
1
Center
Credit
n:
1
area n:
n: 1
1 Company
code
n: n: n:
1 1 1 Sales area
organization point
n: organization n:
1 m
Distribution
Plant
n: channel n:
1
Storage m
Logistics Division
location
Strategic Organizational Structure MM / SD
For Material Management (MM) accounting following organizational units are in focus:
 Purchase Organization
 Plant
 Storage Location
For Sales and Distribution (SD) following organizational units are in focus:
 Sales Organization
 Distribution Channel
 Division
 Sales Area

 Plant
 Division
 Sales Area

Strategic Organizational Units for Material Management (MM)
11001 12037
Logical Company
System code
(Client)
16021
Sales
organizatio
n
15031
Purchasing
organi-
zation
15501
Material
valuation
area 11003
Plant

Organizational Elements: Purchasing
Organization, Plants, Storage Location - MM
AIM
AIM Company
Company
3000 4000
4000
AIM AIM
AIM
International, Inc US International,
International, Inc
Inc
Canada
Canada
Purchasing 3000
3000
Organization US
US #1
#1
Plant 3000
3000 3400
3400
New
New York
York Seattle
Seattle
Storage Loc. SL01

SL01 SL02
SL02

Organizational Elements: Purchasing Organization - MM
Characteristic
Purchasing organizations are used to represent purchasing requirements in the SAP
System
Purchasing organizations procure materials or services, they negotiate conditions with
vendors, and they are responsible for this business
Purchasing Organizations can be :
 Responsible for Procurement for One or More Plants
 Responsible for Negotiating Pricing and Delivery Terms with Vendors
 If a purchasing organization is not assigned to a company code, you
can assign different company codes' plants (the ones it purchases for)
to that purchasing organization
The procurement processes include assigning company codes Purchasing
Organization is Assigned to A Company where Inventory's Legally Tracked or Costs
are Legally Incurred.

Organizational Elements: Purchasing Organization - MM
Purchasing Organization for AIM Company

 Purchasing Organization: Identify the proposed purchasing organization if any for
customer being evaluated.
 Benefits: Identify the benefits of recommended usage of purchasing organization.
 Costs: Identify the costs of recommended usage of purchasing organization.

Organizational Elements: Plant - MM
Characteristic
 Organizational units that subdivide the enterprise in terms of production, inventory
management, plant maintenance, and material requirements planning.
Usually a Manufacturing Facility, Warehouse, or a Location that Stocks, Manages,
and Valuates Inventory
 May be a Physical Site with Multiple Manufacturing/Production Lines
 May be Multiple Manufacturing/Production Lines at One Physical Site
 Can be a Physical Location

(cost centers may or may not be associated to a plant,
i.e. administrative vs. manufacturing cost centers)
 Sales and Distribution Availability Checking is Normally Done at the Plant Level
 A plant has an address, language and country

Organizational Elements: Plant – MM - Integration
Integration
 A plant has its own material master data. You can maintain data at plant level for
the following views on a material master record in particular: MRP, Purchasing,
Storage, Work scheduling, Production resources/tools, Forecasting, Quality
management, Sales, Costing.
 Therefore Links to Production (PP), Materials Management (MM), and Sales and
Distribution (SD) existing.
 A Plant is Assigned to A Company
 Purchasing Organization are Assigned to Plants

Organizational Elements: Plant – MM -
Plant for AIM Company

 Plant: Identify the proposed plants if any for customer being evaluated.
 Benefits: Identify the benefits of recommended usage of plants.
 Costs: Identify the costs of recommended usage of plants.

Organizational Elements: Plant vs. Storage Location – MM -
Plant or storage location?
Criteria for defining your own plants
 Separate planning (e.g., planning of replenishments for warehouses)

 Separate addresses
 Separate public holiday calendars
 Direct assignment to purchase order items
 Stock transfers between plants are visible as explicit goods receipt and
goods issue postings
 Availability check at plant level in standard SD
 Exactly one storage location for each plant as interface to R/3 Warehouse
Management
 Reporting requirements
 Authorizations
 Borders (plants abroad)
 Storage Location – A location within a Plant where inventory is stored

Organizational Elements: Storage Location
Storage Locations for AIM Company
 Storage Locations: Identify the proposed storage locations if any for

 Benefits: Identify the benefits of recommended usage of storage
locations.
 Costs: Identify the costs of recommended usage of storage locations.

 Plant
 Division
 Sales Area

Strategic Organizational Units for Sales and Distribution (SD)
16021 16092
Sales Distribution
organi- chain
zation
16017
16094 16018
Distribution Sales
channel o
- rganization Sales
division area
assignment
16020
Division

Organizational Elements: Sales Organization,
Distribution Channel and Division - SD
AIM
AIM Company
Company
3000
4000
4000
AIM
AIM
AIM
International, Inc US
International,
International, Inc
Inc
Sales
Sales 3000
3000 Canada
Canada
Organization
Organization US
US Sales
Sales
Distribution 03
03
Channel Retail
Retail
02
02 90
90
Division Accessories
Motorcycles

Organizational Elements: Sales Organization - SD
Characteristic
 Legal Selling Unit Responsible for Revenue and Product Liability
 Sales Orders belong to One Sales Organization (Header Level Assignment).
 Master Data Maintenance for Customers, Pricing at Sales Organization Level
 The assignment of a sales organization to a company (code) decides where

the sales revenues are posted. (Link SD to FI)
 Often you need only set up one sales organization for each company (code)
The sales organization represents the company code in Sales
 You can assign one or more plants to one sales organization.
 Within a sales organization, you can define your own master data. This allows
a sales organization to have its own customer and material master data as
well as its own conditions and pricing.

Organizational Elements: Sales Organization - SD
Sales Organization for AIM Company

 Sales Organization: Identify the proposed sales organizations if any for customer being
evaluated.
 Benefits: Identify the benefits of recommended usage of sales organizations.
 Costs: Identify the costs of recommended usage of sales organizations.

Organizational Elements: Distribution Channel - SD
Characteristic
 Breakdown within Sales for Different Product Disbursement Methods, such as
Wholesale vs. Retail or National vs. International
 Master Data Maintenance for Materials, Pricing, at Sales Organization/Distribution

Channel
 Sales Order belong to one Distribution Channel (Header Level Assignment)
 Distribution Channel assigned to a Sales Organization
 Divisions are not just important in SD. They play an important part in the integration
of Logistics and Financial Accounting

Organizational Elements: Distribution Channel - SD
Distribution Channels for AIM Company

 Distribution Channels: Identify the proposed distribution channels if any for
 Benefits: Identify the benefits of recommended usage of distribution channels.
 Costs: Identify the costs of recommended usage of distribution channels.

Organizational Elements: Division - SD Organizational Elements - SD
Characteristic
A way of Grouping Materials, Products/lines, or Services
In structure modelling, divisions can be infrastructure providers or product divisions
Sales Orders belong to One Division (Header Level Assignment)
Divisions are not just important in SD. They play an important part in the integration
of Logistics and Financial Accounting
Some reasons for having several divisions:

 Different procedures for handling processes (for example, order entry)
 Master data differentiation (customer, material, prices)
 Authorizations
 Reporting requirements

Organizational Elements: Division - SD Organizational Elements - SD
Division for AIM Company

 Division: Identify the proposed divisions if any for customer being evaluated.
 Benefits: Identify the benefits of recommended usage of divisions.
 Costs: Identify the costs of recommended usage of divisions.

Organizational Elements: Sales Area - SD
Characteristic
 Sales Area is a Combination of:

 Division
 Determine the distribution channel used by a sales organization for
products from one division
 Used to View Sales-Related Master Data
 Sales Orders belong to One Sales Area (Header Level Assignment)
 Links the Order Entry System(SD) to the Financial/Managerial
System(FI/CO)

Characteristic
Some reasons for having several sales areas:

 Different procedures for handling processes
 Separating or bundling sales activities by sales organization,
distribution channel, or division
 Master data differentiation
 Customer masters
 Prices / conditions
 Material masters (sales area, distribution channel)
 Authorizations
 Reporting requirements

Sales Area for AIM Company

 Sales Area: Identify the proposed divisions if any for customer being evaluated.
 Benefits: Identify the benefits of recommended usage of sales areas.
 Costs: Identify the costs of recommended usage of sales areas.


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Business Organizational Model

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Business Organizational Model

Organizational Structure Workshop

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 3

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 4

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 6

For Financial (FI) accounting following organizational units are in focus:

For Controlling (CO) following organizational units are in focus:

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 9

For Financial (FI) accounting following organizational units are in focus:

For Controlling (CO) following organizational units are in focus:

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 10

11001 12037 14162

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 11

1.What are the legal entities that constitute your business?

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 12

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 13

 Can be Used to Differentiate between a Development, Quality Assurance, and Production

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Standardized Data Across the Client

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Client Strategy for AIM Company

 Benefits: Identify the benefits of recommended strategy.

 Costs: Identify the costs of recommended strategy.

 Issues: Identify any open issues/questions.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 16

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 17

 Arms Lengths Transactions

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A Company is Assigned to:

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 19

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 20

Company Code for AIM Company

 Consolidation Company Codes: Identify the proposed consolidation company codes if

 Benefits: Identify the benefits of recommended usage of company codes.

 Costs: Identify the costs of recommended usage of company codes.

 Issues: Identify any open issues/questions.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 21

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 22

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 23

Business Area for AIM Company

 Benefits: Identify the benefits of recommended usage of business areas.

 Costs: Identify the costs of recommended usage of business areas

 Issues: Identify any open issues/questions.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 24

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 25

Operating Chart of Accounts

 Postings are Made to these Accounts

 Maximum of a 10 Digit Code

 A company Must be Linked to One Operating Chart of Accounts

 An Operating Chart of Accounts can be Linked to Many companies

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 26

Linking of Chart of Accounts to Company Codes

Motor Sports Motor Sports

1 Company Codes are linked to Chart of Account

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Country Chart of Accounts

 Optional Usage in SAP

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 28

Group Chart of Accounts

Consolidation Chart of Accounts

Corporate Group Rollup

Optional Usage in SAP

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 29